The Australian Government has proposed 750 per cent rent increase for DP World’s Melbourne terminal.
According to Shipping Australia Ltd, this will lead to a downturn in trade through Port of Melbourne, which is still trying to recover from the hit of the introduction of the Port Licence Fee in 2012.
“This looks like another blatant State Government money grab from which all Victorians will suffer,” Shipping Australia chief executive officer Rod Nairn said.
The rent increase equates to around $82 per TEU.
“This will be a boon for Adelaide and Sydney but it will be disastrous for Victoria to have the honour of the most expensive port in the world.”
Nairn believes that the proposed rent increase will lead to job losses, urging the Treasurer to rethink and consider the short and long-term impacts of this “unprecedented price hike.”
“Australian exporters and consumers have already suffered significant price increases surrounding privatisation of the Ports of Brisbane, Botany, Port Kembla and Newcastle. Many of the increases were driven by state government actions in the lead up to privatisation,” Nairn went on to say.
“It would be sensible if the Victorian Government took heed of these concerns rather than repeating the process of trying to maximise the short term cash windfall of port privatisation. This will come at the enduring cost of all Australians. It’s a short-term gain, long-term pain outcome”, Nairn said.