Penalty fees for Port Botany

A tough new penalty regime is to be introduced by the New South Wales government at Port Botany in a bid to clear truck traffic jams, as a record number of containers move through the port, the Australian Financial Review reported.

The new system to be announced today and to come into force later in 2010, is not expected to be welcomed by stevedores DP World and Asciano-owned Patrick, after they spent years working towards an industry code.

Negotiations with the industry broke down, and while DP World made recent concessions, Ports and Waterways Minister Paul McLeay has made a decision to regulate.

Under the Ports and Maritime Administration Act, introduced by his predecessor Joe Tripodi, McLeay already has the authority to set the rules for stevedores. It is believed that Sydney Ports and the government will introduce a monitoring system whereby they can track truck movements at the port and for how long trucks are held up in the port.

Stevedores will be forced to pay trucks US$23.15 for every 15-minute delay and $92.60 if their slot is cancelled within two hours, while the government is expected to increase wharfage by $9.25 a container.

As well, the government hopes the new penalties and the entry of Hutchison, which will operate a third terminal from 2011, will relieve congestion.

Patrick has previously rejected a penalty system proposed by Sydney Ports, while DP World indicated its preference is for a voluntary deal.

The Australian Trucking Association’s Mike Moylan says it supports the introduction of performance monitoring and reciprocal penalties and wants a demurrage-free port.

(Source: Cargo News Asia)