Newsletter #386 (View other news stories)
Too little stevedore competition
SYDNEY, New South Wales, Australia
Thursday, 13 Nov 2008
 More intense levels of competition are needed in the Australian stevedoring industry. |
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More intense levels of competition are needed in the Australian stevedoring industry, according to a recent report issued by the Australian Competition and Consumer Commission.
The report questions the future direction of container stevedoring.
"The report shows that the Australian community has benefited from the significant reforms that commenced 10 years ago," says ACCC chairman Graeme Samuel.
"During this time, demand for stevedoring services has doubled. The cost of using stevedoring services has fallen in real terms. In turn, the stevedoring businesses have become more productive and profitable, even during a period when significant expenditure on assets was made.
"However, as the ACCC has noted in previous reports, questions remain about the extent to which the stevedores actually compete to win each other's business. This is important when we look forward ten years and consider the high rates of demand that are forecast to continue.
"The ACCC urges state governments and port planners to ask themselves: What role can competition play in meeting Australia's future stevedoring needs? While some ports are well progressed in testing the market for new competitors, others seem to have settled for the convenience of the current duopoly."
According to Samuel, while the ports of Sydney and Brisbane have forged ahead, Melbourne lags behind, with a third container terminal not due to commence operation until around 2017.
"This is several years after new terminals are expected to be operating in Sydney and Brisbane in around 2012. Any unnecessary delays in establishing additional container terminal facilities could result in lost opportunities for greater competition," says Samuel.
He adds that the future challenge is in coping with growth while ensuring that the incentives for improving efficiency are maintained.
"More intense levels of competition can not only improve efficiency but may also result in a greater share of the benefits being passed on to users and the wider community that rely on the movement of goods into and out of Australian ports."
The report will be available on the ACCC's website at www.accc.gov.au
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