Port regulations ‘insufficient’

A Wimmera farmer is calling for urgent government action to strengthen port regulations and Australia’s port efficiency.

Victorian Farmers Federations infrastructure and transport chair Ryan Milgate said the significant pressures facing the agriculture supply chain were being compounded by high port and stevedore costs, insufficient regulation and low productivity.

“We need both the Victorian and Federal governments to work together to stop Australia becoming a destination of last resort,” he said.

“Even before the pandemic Australia had some of the least efficient ports in the world and this has only gotten worse during COVID-19.

“Not only are we facing massive delays and difficulty accessing ports, but we also continue to face escalating port and stevedore charges.”

Mr Milgate said insufficient port regulations were contributing to the high costs with aggregate rent-per-square metre at the Port of Melbourne more than double any other port in the country.

“As a critical monopoly infrastructure that is central to the prosperity of Australians, it is imperative that there is greater regulatory oversight of port and stevedore pricing,” he said.

“These high costs and delays across port operations risk long term damage to our vital export markets and makes Australia less attractive for international shipping lines. It makes it incredibly hard for Victorian farmers to maintain access to export markets under these conditions.”

Mr Milgate said farmers needed to take action because they faced the inevitable flow-on costs.

“We are asking the government to act to relieve pressure. The longstanding domestic port inefficiencies act as a real disincentive to visit Australian ports and add more cost to landside costs to shipping services,” he said.