14 March 2023
Unregulated Port of Newcastle more than triples wharf charge
Today’s announcement from the Port of Newcastle that it will significantly increase fees for all Port users is a stark reminder of the need for regulatory oversight of pricing at the Monopoly Port.
From 1 April 2024, Wharfage Charges at the Port will increase for all Port users, including a tripling of the wharfage fee for coal and other non-containerised cargo.
It is estimated this price increase for coal users alone will generate around $30 million in additional revenue for the Port, with no commensurate improvement in Port services.
Noting the Port’s future plans for increased container movements, Wharfage Charges for containerised cargo at the Port are also set to more than triple, according to the new ‘Schedule of Service charges’ posted on the Port’s website today.
The Port is able to increase these charges so significantly because it is a monopoly operating without any regulatory oversight on pricing, forcing users to pay more for the same services.
In 2021, former ACCC Chair Rod Sims repeatedly expressed concerns about the unregulated status of the Port of Newcastle, telling Senate Estimates hearings,
“Port of Newcastle pushed its prices up by about 50 per cent as soon as it got control of the port, and there have been continuing disputes over the pricing...we're concerned that we've got an absolute monopoly without any price regulation.
The ACCC continues to hold these concerns in relation to the Port of Newcastle, stating in a recent submission to the current Commonwealth Treasury Competition Review,
“The Port of Newcastle was a stark example where no adequate regulatory framework led to an unconstrained monopoly that could charge inefficiently high prices.”
These latest massive price increases at the Port demonstrate the clear need for regulatory reform to protect all Port users, now and in the future.
The Port should now publicly reveal any plans for future price increases so that current and potential Port users are fully aware of what to expect.
The Port’s 2018 economic analysis of its future diversification plans must now also be revised, so all price increases since 2018, and all planned increases, are taken into account.
ENDS Dan Maloney | NSW Minerals Council | dmaloney@nswmining.com.au | 0477651355