Patrick Terminals Media Statement

Last Updated: 23^rd December 2024

Patrick Terminals Response to ACCC Container Stevedoring Monitoring Report 2023-24

Patrick Terminals acknowledges the release of the ACCC’s Container Stevedoring Monitoring Report 2023-24. It is important to highlight the absence of commentary in the Report about several areas that are critical to considering the impact of any policy changes on the efficiency of Australia’s container supply chain.

Patrick Terminals is committed to ongoing engagement with the ACCC and Australian Government to ensure these important factors are properly considered as part of the ACCC’s ongoing monitoring role in the coming period:

1. Investments have halved supply chain costs: how investments by container terminal operators have delivered very material cost savings for Australian importers and exporters, with real supply chain costs halving across the past 20 years and the risks of the next wave of investment in rail and sustainability initiatives being undermined;
2. Investments are delivering major economic benefits: how investments by container terminal operator over the last two decades have yielded efficiencies that continue to yield around $100 million per year in economic benefits and have been an essential enabling factor in supply chain efficiency improvements yielding benefits to the Australian economy of around $2 billion per year;
3. Investments have provided resilience during disruption events: how investments by container terminal operators have supported Australian importers and exporters through periods of major supply chain disruptions (including COVID, the Red Sea conflict and industrial disruption), by providing resilience in operations and allowing service levels to be maintained whilst handling the growing freight task;
4. There is improved focus on landside services: how landside fees have supported improved focus on the efficiency of the landside interface, supporting investment and resource allocation to road and rail services;
5. Key supply chain reform areas have not progressed: the absence of reform in other key areas identified by the ACCC, including transparency of end-to-end supply chain costs for shippers, Part X, ECP detention fees, and privatised port operator issues;
6. Significant further analysis is needed to understand the impact of a policy response: how a policy or regulatory response would improve efficiency of the container supply chain, improve export competitiveness and lead to lower prices for Australian households or businesses. As the ACCC has been provided with extensive evidence to the contrary, we will seek further engagement on these matters as part of the ACCC’s continued monitoring;
7. There are significant risks, including for small to mid-sized importers and exporters: the undefined and unproven benefits, alongside significant risks, of a further policy or regulatory response, including major downsides for small to mid-sized Australian importers and exporters.

Patrick Terminals emphasises the need for robust analysis of the risks and benefits of any proposed changes to ensure Australia’s container supply chain remains globally competitive and resilient.

 

Media contact – Sarah Dennis 0418 653 863