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Port Botany: the stevedores respond


Following negative commentary from the State Government and the Sydney Ports Corporation and the proposed introduction of a penalty system, Patrick and DP World have responded to the criticism.
 
Patrick
 
Patrick divisional general manager Paul Garaty said the company is concerned the loss of flexibility resulting from the penalty system will be detrimental for port efficiency.
 
"While we support the introduction of performance incentives for both parties, we don't believe that the introduction of regulation will decrease congestion at the port, as it will remove the current flexibility we provide carriers and will be immensely costly for all involved in the supply chain, particularly smaller operators.”
 
Patrick has calculated that penalties to carriers for the last 6 months, if the new government / SPC regulation penalties had been applied, would have been as follows:
 
Late and No Show Penalty charged to operators if stevedore cannot accept outside of time slot: $3,357,000.
 
Late and No Show Penalty charged to operators if stevedore can accept outside of time slot: $1,992,600.
 
(In all likelihood the penalties imposed would be somewhere in between this range).
 
Penalties to the carrier under Patrick’s proposal, and as currently applicable today:
 
Late and No Show Penalty charged to operators: $376,920
 
(Maximum amount if all No Shows charged which is presently not the case).
 
The solution may lie outside the port
 
"The regulation fails to take into consideration the kind of congestion that exists outside of the port precinct, which also contributes to drivers being unable to arrive at the port at the exact time their time slot opens.
 
"Regulation may mean that if a carrier is late due to Sydney road congestion or reasons outside of their control, Patrick may no longer be able to accept them as this may have compounding financial and operational consequences.
 
"The failure of Sydney Ports and the government to accept peak period pricing is disappointing, and has already had a direct impact on Patrick's decision to exit rail in NSW, potentially reducing the current rail share to 18%.
 
"We would like to see greater commitment and real action undertaken by Government to increase and improve road and rail infrastructure across NSW,” Mr Garaty said.
 
Patrick has also denied their recent improvement in road deliveries was due to diminishing volumes owing to declining market share, and said the net number of containers handled has actually increased, as many containers have been switched from rail to road delivery.
 
DP World
 
DP World management was unavailable to comment, instead the company issued the following statement:
 
“DP World continues to be an active and supportive participant in the PBLIS process.
 
“As we have stated from the outset, having voluntary industry agreement is preferential to having regulations imposed by government. DP World has been working towards voluntary implementation of the Operations Performance Management framework prior to the minister’s announcement. 
 
“DP World will continue to cooperate with Sydney Ports Corporation and industry with a view to ensuring the objectives of PBLIS are realised.”

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