Port Botany move to raise rail freight fees blocked

A leading stevedoring company has criticised the NSW government for blocking its plans to increase rail freight fees at Port Botany, reported the Australian Associated Press Financial News Wire.

The government stepped in after Patrick announced earlier this month it would raise fees by 67 per cent, saying it would not allow such "monopolistic behaviour".

Opponents said Patrick's move would have resulted in thousands of extra trucks on the state's already-congested motorways, with rail operators threatening to move freight by road.

That prospect was "simply unacceptable", Treasurer Eric Roozendaal said, adding that the government would not compromise its commitment to moving 40 per cent of freight by rail.

"Government and industry have been working hard for over two years to provide certainty, fairness and equity for all elements of the supply chain and I will not allow Patrick to side-line those efforts," Roozendaal said.

"There is no justification for a new charge. I will be regulating prices to ensure fairness."

But Patrick says the government's heavy-handed intervention isn't sensible. It also claims repeated requests for meetings to discuss ways to increase port-rail interface efficiency during the past six months had been denied.

"We believe the real issue is not pricing. This is the government's attempt to hide its lack of investment in rail," Patrick Container Ports general manager Paul Garaty said.

However, the government's decision was welcomed by the Rail, Tram and Bus Union (RTBU) and rail operators.

"It's simply unacceptable for one private company to brazenly flex its market dominance this way at the expense of the NSW economy and transport system," RTBU national organiser Bob Nanva said.

"(It) would have sent potentially millions of tonnes of freight moving from the rail network onto the state's congested road network."

Rail companies Qube Logistics and Independent Rail said the new charges would have had a devastating impact in rural NSW.

"They would have significantly added to the cost of exporting through Port Botany," Independent Rail managing director Steve Heraghty said.
(Source:www.cargonewsasia.com)