Contracts retained in port tug of war

THE status quo has been maintained in contentious contracts for multimillion- dollar tug operations in North Queensland amid claims unions exerted undue influence over decisions.

But both the Maritime Union of Australia, which negotiated an effective 10 per cent wage cut on behalf of one winning tenderer, and the Cairns- based government- owned port authority rejected suggestions correct probity had not been followed.

Multinational Smit Lamnalco is set to retain its exclusive contract for towage at the Townsville port while its international competitor Svitzer is likely to keep exclusive rights to work at the Cairns, Mourilyan and Lucinda ports. Authorities controlling the ports said Smit Lamnalco and Svitzer had been selected only as “preferred tenderers” because negotiations had not been completed.

It is understood Svitzer and Smit Lamnalco need to agree on arrangements at Lucinda.

Ports North chairman Russell Beer said its board had resolved Svitzer be selected as preferred tenderer for licence agreements at Cairns, Mourilyan and Lucinda subject to the negotiation of the final terms.

“Strict probity protocols are in place for the assessment and selection of ( the) preferred tenderer and the award of the licence agreements,” Mr Beer said.

“Notification of Ports North’s board decision about the provision of towage services was provided to the Minister for Ports ( Mark Bailey), consistent with Queensland Government Guidelines for the Issue of Harbour Towage Licences by Port Government- Owned Corporations.”

In a newsletter, the MUA said it was “good news” its members had kept their jobs at all four ports for a further five years with two- year option.

“There has been a massive amount of work going into ( the) outcome which involved numerous Ministers meetings at a Queensland State Government level with upwards of five separate meetings,” MUA deputy branch secretary Jason Miners said in the newsletter.

Mr Miners told the Bulletin they had not agitated for any contractor to win the work but had been concerned partnership deals such as at Hay Point coal terminal would be repeated.

“We lobbied the State Government and they saw the light there as well,” Mr Miners said.

The union negotiated a wage freeze with Svitzer that allowed its members to “keep their jobs”, Mr Miners said.

Sources, speaking on condition of anonymity, claim Queensland tug operator Pacific Tug was set to replace Svitzer but that Svitzer players were “gobsmacked” when Svitzer was announced as the winner.

During the tender process Pacific Tug complained the possible bundling of contracts over the four ports would favour large operators.

Yesterday, Pacific Tug CEO Chris Peters declined to comment.