The Victorian Government has introduced a Bill which would
require the Port of Melbourne Corporation
("PoMC") to pay the Government an annual
Port Licence Fee ("PLF") of $75
The PoMC has already indicated that it would effectively pass
on the PLF to shipping companies by increasing charges such as
wharfage, channel fees and other charges.
Shipping companies are likely to pass on the PLF to their
customers, increasing costs to freight companies, importers and
The PoMC has invited written comments from industry by
10 February 2012.
The Bill to impose a $75M fee on the PoMC
On 6 December 2011, the Victorian Government introduced the Port
Management Amendment (Port of Melbourne Corporation Licence Fee)
Bill ("Bill") into Parliament.
The Bill will replace the previously proposed Freight &
Infrastructure Charge ("FIC"), which was
to be a levy on trucks carrying import and export containers in and
out of the Port of Melbourne. The FIC was opposed by trucking
companies and key industry groups, including the Victorian
Transport Association and the Customs Brokers and Forwarders
Council of Australia.
The Bill proposes that the PoMC be required to pay the PLF
annually to the Victorian Government at a rate of $75 million for
the financial year beginning 1 July 2012. The PLF would increase
annually by the Consumer Price Index in subsequent years.
The PoMC is likely to increase charges The PoMC's has
released a series of six information papers and called for comments
from industry. However, the PoMC has already indicated that its
proposed approach will be to increase charges from 1 July 2012,
including wharfage, channel fees and other charges. For channel
fees, the increase will be applied to both Melbourne and Geelong
The PLF will result in higher supply chain costs for businesses.
Some stakeholders have criticised the Victorian Government and
argued that the PLF will affect the Port of Melbourne's
competitiveness with other ports.
What can you do?
If you are concerned about the PLF or the PoMC's approach to
the PLF, we can assist you in making a submission. We can also
assist in ensuring that any additional charges can be passed to
customers through terms and conditions.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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