Patrick Terminals Media Statement
Last Updated: 19th August 2024
Synergies Analysis Confirms Container Terminal Charges are not a driver of Cost of Living pressures
Patrick Terminals, Australia’s leading container terminal operator, today expressed concern at recent political and media commentary that increases in container terminal charges have contributed to the cost-of-living pressures.
Recent analysis completed by Synergies Economic Consulting observes that the operating margin of stevedores contributes approximately $0.40 per week (0.016%) to average household expenditure, an amount that cannot be credibly maintained to have an effect on cost-of-living pressures.
The causes of cost-of-living pressures lie elsewhere: in higher mortgage costs, and in the increase cost of services such as health, education, insurance and financial services.
The analysis shows that overall import supply chain costs represent approximately 7% of the total cost of goods imported into Australia. Of that 7%, container terminal fees (quayside and landside) account for only around 8%, implying that total container terminal fees account for less than 1% of the total cost of imported goods.
Synergies modelling also identifies that overall import supply chain costs have reduced by around 50% in real terms over the last two decades and that it is investment by container terminal operators that has made an important contribution to this reduction.
Michael Jovicic, CEO of Patrick Terminals said, “Patrick Terminals has invested close to $1 billion in terminal infrastructure and equipment, delivering capacity and efficiency improvements that have resulted in a major reduction of real costs.
Investment in our landside operations have unlocked further supply chain cost reductions through more efficient truck servicing. Our current focus on developing rail capacity represents the next area of opportunity for further supply chain savings in the future.”
The Synergies report concludes that it is misleading to suggest that cost-of-living pressures can be alleviated by intervening in the market for container terminal services.
We are pleased to confirm that Patrick Terminals has formally committed to enhancements to the Voluntary Pricing Protocol for landside fees following engagement with Freight Victoria. We look forward to these enhancements being published by Freight Victoria soon.
Patrick Terminals remains committed to enhancements that could support shippers to make more informed business decisions.
Patrick Terminals also welcomes continued engagement with industry bodies on Patrick’s ongoing landside investment program and efficiency benefits.
Media contact – Sarah Dennis 0418 653 863