News / Lobby group fury over 'cash grab' port fee hike plan for Fremantle

ID 18471269 © Robert Bayer

“Truly massive port fee hikes are on the way” for Australian shippers, warned industry association Shipping Australia Ltd (SAL), which hit out at Fremantle Ports for what it called an “unjustified and intrusive cash grab”. 

SAL today warned members Fremantle Port planned “insanely high” fee hikes from October, including a 295% rise in the cost of mooring, and other hikes ranging from 20% for produce exports and 42% for import containers. 

“They have decided to punch everyone in Western Australia in the pocket. And they’re going to punch hard,” said the association. 

It added that its members – ocean shipping companies, shipping agents, port and terminal operators, lawyers and others – were “frustrated and annoyed”. 

It said: “Our members have already signed contracts they will honour, so of course, these huge Fremantle Ports’ fee hikes will affect their bottom line, and they, are very upset about it – as any business would be.”

And while SAL has been very vocal during port strikes and other disruptive events, it noted that Freemantle Ports was government-owned and run – the only one in Western Australia – and consquently, “the shipping industry has no power”. 

“The port can do what it likes, without regard to the interests of customers or Western Australians. They have made their decision to have more of everybody’s money and will accept no dissent. 

“Fremantle Ports will claim it engaged in consultation, but massively hiking unchallengeable fees by imperial diktat isn’t consultation; it ain’t even notification. It’s dictation. And that’s just not on. No government-run business ought to behave this way.” 

According to SAL, the port has provided little reasoning for the price increases, only “some vague noises about needing to fund maintenance and port improvements”. 

SAL said: “The port has been charging fees that should have been put towards maintenance for years. So why isn’t the port already up to the standard it should bet?”And it added that fees should only be charged after any improvements were complete. 

“That’s a bit like a coffee shop charging you an enormous up-front surcharge for your daily caffeine on the basis that the owner wants to buy a newer, better, machine.”

SAL suggested that Western Australian government itself should fund any upgrades, or borrow the needed capital from the international bond markets.  

“Shipping Australia calls upon the WA Premier, Roger Cook, to do the right thing, the honourable thing, the kind thing, for his constituents and reign-in Fremantle Ports’ outrageous price hikes,” it concluded.