Australia’s first performance management scheme to reduce congestion at the port landside interface will commence at Port Botany in late 2009.

Australia’s first performance management scheme to reduce congestion at the port landside interface will commence at Port Botany in late 2009.

"It is intended that the performance management framework will be in place by the final quarter of 2009, prior to any introduction of peak-period pricing in early 2010 which will help drive 24/7 operations for the whole landside supply chain," says CEO Grant Gilfillan.

An industry trial in April found that the operations of stevedores and carriers continue to be concentrated during peak periods, adding to the risk of continued congestion at the port across the day.

Gilfillan says the April trial confirmed that peak utilisation of available slots at Port Botany currently sits around 99.9%. On weekends, however, the trial revealed slot utilisation rates as low as 20%.

"The trial revealed there is clearly a need to drive demand away from peak and shoulder periods towards off-peak periods," he adds.

The new framework will see penalties flow both ways from stevedores and transport operators for failures to meet service standards once they are agreed and in place.

The purpose of the peak and shoulder period charges is to reduce daytime congestion from road carriers entering the port terminals and to help drive off-peak and weekend operations.

Initial analysis found the range of AUD160 to AUD180 would be sufficient to help drive behavioural change. However, Sydney Ports has decided on AUD160 as the initial peak price, with industry to be given one month to provide feedback.

"In addition, the range for shoulder period pricing was around AUD80 to AUD90; however, it has been determined to set this at AUD80 for trucks arriving between 1pm and 9pm.

"Once this peak-period price scheme is operational in early 2010, it will be subject to regular price reviews according to the level of behavioural change achieved.

"A $20 weekend credit will apply to help smooth out truck arrivals and will also be subject to regular review," says Gilfillan.

Further consultation with industry will now be undertaken over the next month.