Botany fees up to keep plans on track

New South Wales ports minister Joe Tripodi said last week that the amount charged in fees – essential to raise enough money to continue to fund the five-berth expansion – had fallen below expectation.
The global economic slowdown has caused a marked fall in cargo volumes moving through the port and that has meant the port corporation is earning less in shipping and wharfage revenue.
The project was predicated on continued growth in container throughput that was to have seen the new terminal come online about the time the existing facilities reached capacity.
With less trade moving through Port Botany, Sydney Ports had been left well behind its forecasted income.
Mr Tripodi said the State Government had “authorised the suspension of dividends to be paid to the government over the next few years to allow retained earnings to be used in funding the company’s capex program”.
The State Government would absorb the shortfall, but Sydney Ports will continue in its plan to increase charges from July 1.
Wharf fees will continue to be charged in line with the original plan outlined at the start of the project, limited only to biennial increases based on CPI.
Sydney Ports chief Grant Gilfillan said navigation service charges had not been increased since 1996 while container wharfage charges had been unchanged since 2007.
Maritime security charges for full international import and export containers will rise from $1.50 to $1.60 per teu.
“Sydney Ports Corporation has a history of price restraint and responsibility,” Mr Gilfillan said.
“Even with the latest modest increases to container wharfage and navigation service charges, Sydney Ports Corporation’s total charges are lower than what they were 15 years ago.”
Work is well advanced on the 60 ha reclamation at Port Botany, which will provide five new berths stretching 1,850 metres and to a 16.5 metre draught.