The big change to Port of Melbourne that will mean more money for you
When Port of Melbourne operators were slugged with a 3000 per cent increase on containers, consumer were warned they would be the ones paying the price — now a big change could stop Victorians from being unfairly stung.
VIC News
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Skyrocketing charges at the Port of Melbourne are to be reined in under new measures by the Andrews Government that could spare Victorians more price rises on consumer goods.
Since 2017, stevedores at the port have raised the fee they charge for each container they handle, from $3.50 to between $80 and $125, an increase of more than 3000 per cent.
Transport operators warned they would have no choice but to pass on the costs as they rose, with consumers likely to be slugged every time the charges were bumped up.
The Andrews Government commissioned a review into the issue and will announce new guidelines this week to ensure price increases are kept to reasonable levels.
Under the scheme, stevedores will have to give advance notice to governments and transport about price hikes, and provide justification for these changes.
Changes will also be limited to once a year, but the price of the charge will not be further regulated by the government.
More work on the draft scheme will be done with transport companies and other parts of the industry before a 12-month trial next year.
Ports and Freight Minister Melissa Horne said the government was working to make the port more efficient and cost effective.
“Last year we conducted a comprehensive review of port pricing, which showed a lack of pricing transparency,” she said.
“We’re now ensuring there is greater accountability through the introduction of voluntary standards and reporting of prices.”
Victorian Transport Association chief executive Peter Anderson welcomed the move and said its benefits should not be understated.
“Most importantly, it will require stevedores to provide a rationale for increases to fees and charges, and regulate the frequency that prices can be adjusted, providing certainty to landside operators and an end to the days of excessive price rises at the ports,” he said.
“The VTA would like to recognise the Victorian government for … taking steps to ensure the Port of Melbourne grows in its productivity and efficiency, and remains the preferred destination for in and outbound freight.”
It comes as the Port of Melbourne introduced its own levy on containers, to be used to fund projects to put more freight on rail.
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