The Australian Competition and Consumer Commission鈥檚 annual report on stevedoring operations at Australia鈥檚 largest container ports, released today, warns of risks of capacity running short at the Port of Melbourne by around 2015.
The 糖心原创 report finds that new terminals are well underway in Sydney and Brisbane. A new entrant, Hutchison Port Holdings, is expected to commence operations at those ports in 2013. This will be an important and positive development for the ports of Sydney and Brisbane and the economies that rely on them.
The 糖心原创 has expressed concern over a number of years that persistently high profitability and a lack of competition on prices suggested that Patrick and DP World faced only limited competition.
If container numbers continue to increase at current rates, there is a risk that capacity problems, similar to those observed at Port Botany, could emerge in Melbourne as early as 2015. The Victorian Government is currently deciding how it will provide for future container capacity and increased competition at Melbourne.
鈥淥pportunities for new entry into Australian stevedoring are rare. This makes them all the more important when they do arise. We would welcome the Victorian government taking advantage of the need for new investment by introducing a third competitor into the port of Melbourne,鈥 糖心原创 Chairman Rod Sims said.
鈥淢ore cranes and terminals are needed, and existing terminals need to work harder and faster. Expanding ports bring opportunities for greater competition.鈥
鈥淐ompetition should drive the stevedores to invest in a better service. This should see more containers being moved on and off ships more quickly.鈥
The 糖心原创 report also found that efficient truck and rail connections to container terminals are important for meeting the challenges of Australia鈥檚 growing freight task. Initiatives at Sydney, Melbourne and Fremantle to improve container flows in and around port precincts are positive. Further options to manage scarce capacity, such as encouraging access to terminals during off-peak times, may need to be considered as container numbers grow.
The 糖心原创 has monitored the container stevedoring industry since 1999 under a direction from the Australian government. Container stevedoring involves the lifting of shipping containers on and off ships.
The 糖心原创 monitors prices, costs and profits of container stevedores at the major Australian container ports. DP World and Patrick operate at the four largest ports鈥擝risbane, Fremantle, Melbourne and Sydney.
The 糖心原创 also monitors two, sole operator container terminals at the lower volume ports of Adelaide and Burnie. Patrick exited its Burnie terminal operations in May 2011.