Landside Fee Increases will be effective from 1st January 2024

Team Express has received notifications on upcoming landside fee increases that will affect our clients. We would like to advise you on these upcoming changes, as we lead into the new year.

On 1 January 2024, DP World Australia (DPWA) and Victoria International Container Terminal (VICT) will considerably increase their landside charges. In this notice, we will share details on both, as it is essential to factor these increases into your 2024 supply chain costs.

DPWA
Notices of Intention to increase landside fees in 60 days have been received from DPWA for several different fees.

1) Landside Fee Increase Percentages: In its East Coast port terminals, where there is no Government oversight or intervention on stevedore landside fees, the following percentage increases have been announced by DPWA:
• Terminal Access Charge (TAC) Full Exports: 52.52% increase in Melbourne; 38.80% increase in Sydney; 37.50% in Brisbane.
• Terminal Access Charge (TAC) Full Imports: 26.18% increase in Brisbane; 25.49% in Sydney; 21.22% in Melbourne.
• Fremantle: In contrast, where the WA Government still owns Fremantle Ports and landside fee increase percentages have been capped in terminal leases, the Terminal Access Charges (TACs) for total imports and full exports will only rise by 5%.

2) Weight Misdeclaration Fee: Notices have been issued stating that following the introduction of a calibrated weighing device (PONDUS) in Melbourne earlier this year – PONDUS devices will be implemented in DPWA’s Sydney and Fremantle Terminals in the first half of 2024 (dates to be confirmed).
• Sydney PONDUS Weight Misdeclaration Fee Notice dated 31 October 2023
• Fremantle PONDUS Weight Misdeclaration Fee Notice dated 31 October 2023

3) Vehicle Booking System (VBS) and ancillary charges: Will be increasing by various amounts, including:
• VBS Slot Fees and full Stack Run Fees (per slot) increasing by 49.74% in Fremantle (as a charge outside of the capped fee agreement in the Fremantle terminal lease) and by 35.65% in Melbourne, Sydney & Brisbane.
• Energy Charge (per export and import unit) rising by 13.96%
• Vehicle Misdeclaration Fee increase by 23.33%
• Various other charges increasing by percentages between 7.51% to 9.45% – all above CPI.

Further details on Landside Fees, VBS and ancillary changes can be found here:
• Melbourne Terminal
• Sydney Terminal
• Brisbane Terminal
• Fremantle Terminal

DPWA Justification for Increases:
The Notices of Intention include general statements from DPWA forecasting more than $600m in capital expenditure across 2023-2026 in its four terminals to invest in equipment, and civil expansion works to cater for greater landside demand. The statement is accompanied by a table setting out key equipment capex items in each Terminal.

The Notices also mention other capex expenditures on maintenance and expansionary pavement work at all terminals and on IT infrastructure & system upgrades. Under the national voluntary guidelines, DPWA must issue final 30-day Notices, with responses to the industry feedback they receive.

What we are doing about it:
We will continue working with and supporting the Freight & Trade Alliance, the Australian Peak Shippers Association (ASPA), and the Container Transport Alliance Australia as they initiate the following:
• Asking for further justification for such steep percentage increases in fees and charges and expressing frustration at having nil engagement on the proposed increases.
• Asking for further justification for such steep percentage increases in fees/charges under the National Guidelines on stevedore landside fee increases (and the Victorian Voluntary Pricing Protocol). For instance, what is the justification for a 49.74% increase in Fremantle and a 35.65% increase in Melbourne, Sydney and Brisbane on Vehicle Booking System (VBS) fees? How can those increases be justified concerning expenditure on upgrading IT infrastructure and systems?
• Correspondence to various Federal Government Ministers, again requesting a response to the Productivity Commission recommendations as outlined in their review of Australia’s Maritime Logistics System with specific reference to the proposed introduction of a Mandatory Code administered by the Australian Competition and Consumer Commission (ACCC) to oversee/approve any adjustments to landside fees.

What can you do about it:
As an import and/or shipper, you can make your voice heard directly to DPWA by emailing your thoughts to VIC.landsidefeedback@dpworld.com.au by Friday, 24 November 2023.

VICT
Notices of Intention to increase landside fees in 60 days have been received from VICT for three different fees.

1) Vehicle Booking System (VBS) and Import Storage Charges: Effective 1 January 2024. VICT reports they have experienced a notable increase in business costs during the past twelve months. While VICT makes every effort to absorb these costs, there remains a need to recover some of the costs associated with the landside operations. This adjustment is essential to ensure VICT continues providing efficient service to our customers. Full details can be found here.

2) Late Receival Fee: This $402.75 + GST fee is for managing requests and the late receival of export containers after the agreed vessel cut-off. This includes vessels subcontracted to Victoria International Container Terminal by other container terminals. Full details can be found here.

VICT Justification for Increases:
According to recent reports from Victoria International Container Terminal (VICT), the company has experienced a pronounced increase in operating costs over the past year, which has led to an updated fee structure. VICT says these cost pressures have come from various sources, with significant drivers being the current economic inflation and the steep rise in energy prices. Although VICT has made every effort to mitigate these expenses, they report that a partial recovery through revised fees is essential to sustain the high level of efficient service on the landside operations that customers rely on.

VICT also reports ongoing investments in an expansion project to bolster the terminal’s infrastructure by 30% and advance its vehicle booking system, which is expected to be fully operational early in 2024. These developments and consistent investment in the latest technology are critical for maintaining the automated processes VICT’s clientele expects.

What we are doing about it:
We will continue working with and supporting the Freight & Trade Alliance, the Australian Peak Shippers Association (ASPA), and the Container Transport Alliance Australia to communicate with VICT concerning these increases.

What can you do about it:
As an import and/or shipper, you can make your voice heard directly to the Victorian Department of Transport Voluntary Pricing Protocol by emailing your thoughts to customer@vict.com.au. While we will continue to advocate for our valued clients, these charges will likely be implemented beginning on 1 January 2024.