Following the sale of the lease to the Port of Melbourne, Victorian farmers have shouldered the brunt of significant price hikes through ever-increasing infrastructure charges.
Last month, charges from one stevedore rose sharply to more than $85 per container. To put this into context, a container holds approximately 24 tonnes of wheat, which means each tonne of wheat is charged $3.55 by the stevedores.
In 2017, nearly two million tonnes of grain was exported through the Port of Melbourne. This means nearly $8m each year is taken out of Victorian farmers pockets for the port infrastructure charge.
Stevedores have indicated the increasing charges can be “passed through the supply chain, without negative impact”. This attitude reveals a total lack of understanding of how the costs flow through to Victorian farmers, who cannot pass on the costs and are therefore hit the hardest.
According to the ACCC’s Container Stevedoring Monitoring Report released late last year, one stevedore’s rates have risen 2372 per cent since the first port infrastructure charge of $3.45 per container was introduced.
In response to the shocking charge hikes, then Minister for Ports Luke Donnellan, declared in 2018 there would be a review the Port of Melbourne port infrastructure charges.
Now, in February 2019 and 50 days into the government’s first 100 days, we are yet to see any solid commitments as to when this review will commence.
While the government drags its feet, the excessive charges continue to render Victorian exports less competitive.
Victorian farmers have faced a challenging season. For those delivering grain in this difficult time, the last thing they want to see if their pay check being substantially reduced due to ridiculous fees.
- Ross Johns, VFF Grains President
