A REVIEW OF THE PORTS AND MARITIME ADMINISTRATION REGULATION 2012 AND THE PORT BOTANY LANDSIDE IMPROVEMENT STRATEGY 29 JANUARY 2021

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A REVIEW OF THE PORTS AND MARITIME ADMINISTRATION REGULATION 2012 AND THE PORT BOTANY LANDSIDE IMPROVEMENT STRATEGY 29 JANUARY 2021
A REVIEW OF THE PORTS AND MARITIME ADMINISTRATION
             REGULATION 2012 AND THE PORT BOTANY LANDSIDE
                         IMPROVEMENT STRATEGY 29 JANUARY 2021
Joint Response Submission from the International Forwarders and Customs Brokers Association of Australia Limited
         (“IFCBAA” and Road Freight NSW (“RFNSW”) developed with assistance from Eighty8 Consultants
                               (lodged 19 February 2021 with TFNSW) (26 pages)

                                                                       Table of Contents
   1. Executive Summary …………………………………………………………………………………………………………………..……..……………..1
      1.1 Project Purpose……………………………………………………………………………………………………………………..……………………3
      1.2 Scope of Work..………………………………………………………………………………………………………………………..…………………4
      1.3 Summary of Approach………………………………………………………………………………………………………………..……………… 4
   2. Proposed draft documents summary of changes………………………………………………………………………………..……………. 4
      2.1 Port Botany Landside Improvement Strategy..………………………………………………………………………………..………….5
          2.1.1 History Independent Pricing and Regulatory Tribunal …..………………………………………………………….……5
          2.1.2 Framework .……………………………………………………………………………………………………………………………………5
          2.1.3 Proposed Changes and Amendments .…………………………………………………………………………………….….....5
      2.2 Ports and Maritime Administration Regulation 2012 .…………………………………………………………………………………8
          2.2.1 History of Ports and Maritime Administration Regulation 2012………………………………………………………9
          2.2.2 Framework……………………………………………………………………………………………………………………………………..8
          2.2.3 Ports and Maritime Administration Regulation 2012 remake (changes and amendments)……………..9
   3. The International Forwarders & Customs Brokers Association of Australia and Road Freight NSW
      Commentary and Position on Regulation Changes and Amendments..………..…....……………………………………………14
          3.1.1 Containment and Control of Stevedore Charges……………………………………………………………………………14
          3.1.2 Stevedore Terminal Access Agreements and Conditions……………………………………………………………….17
          3.1.3 Expansion of the Regulation and PBLIS………………………………………………………………………………………….18
          3.1.4 Establishment of a Port Community System (incorporating full and empty containers)….…………….19
          3.1.5 The International Forwarders & Customs Brokers Association of Australia and
          Road Freight NSW need for additional data……………………………………………………………………………………………….19
   4. Recommendations……………………………………………………………………………………………...….……………………………………….20

Appendices......................................................................................................................................................................22
References…………………………………………………………………………………………………………………………………………………………………25
1. Executive Summary

Movement of cargo in sea freight containers is an important aspect of port operations. The transportation system helps
move freight from the terminals or stevedores to the points of consumption.

Communities and businesses in New South Wales (NSW) gain economic benefit from the ability to buy and sell their
goods in overseas markets. The movement of goods through ports often directly impacts communities next to these
facilities, including container transportation companies, freight forwarders, customs brokers, and warehouses.

Regulations have proven to improve the safety and efficiency of goods movement. These benefit all stakeholders,
including those entities involved in the supply chain and those communities impacted by it. Regulation is an important
tool available for the NSW Government. Well designed and properly targeted regulation helps deliver the community’s
economic, social, and environmental goals. However, regulation can also impose administrative, compliance burdens
and costs on business and consumers. These burdens must be weighed against the benefits that the regulation
generates.

The NSW Government has expressed that the key characteristic of good regulation is to minimise red tape. This is
achieved through the seven principles of better regulation. These principles are designed to improve the quality of
regulation by ensuring that the decision maker is aware of potential issues when undertaking regulatory reviews.

The Better Regulation principles (Commission, 2016) are:
Principle 1: The need for government action should be established. Government action should only occur where it is in
the public interest, that is, where the benefits outweigh the costs.
Principle 2: The objective of government action should be clear.
Principle 3: The impact of government action should be properly understood by considering the costs and benefits (using
all available data) of a range of options, including non-regulatory options.
Principle 4: Government action should be effective and proportional.
Principle 5: Consultation with business and the community should inform regulatory development.
Principle 6: The simplification, repeal, reform, modernisation or consolidation of existing regulation should be
considered.
Principle 7: Regulation should be periodically reviewed, and if necessary reformed, to ensure its continued efficiency and
effectiveness.

This report was commissioned by the International Forwarders & Customs Brokers Association of Australia (IFCBAA) and
Road Freight NSW (RfNSW) in December 2020, in response to communication via email and website from Transport for
NSW (TfNSW), regarding their review of the Ports and Maritime Administration Regulation 2012. This is required under
the staged repeal program of the Subordinate Legislation Act 1989. TfNSW also advised IFCBAA and RfNSW that they are
proposing to make some minor amendments to the Port Botany Landside Improvement Strategy (PBLIS) Mandatory
Standards and have requested feedback. PBLIS was introduced in 2010, after the Independent Pricing and Regulatory
Tribunal (IPART) found inefficiencies with container movements at Port Botany.

The feedback provided to TfNSW by IFCBAA and RfNSW will inform potential future amendments to this legislation.

The following documents were provided by TfNSW for this review:
•       Consultation Draft Ports and Maritime Administration Regulation 2020
•       Regulatory Impact Statement
•       Comparison Guide to the Regulation and the Draft Regulation – shows the revised structure and proposed
        changes
•       PBLIS Mandatory Standards with proposed changes
•       Summary of proposed changes to PBLIS Mandatory Standards
                                                                                                                      pg. 1
This project undertaken by Eighty8 Consultants is divided into three parts:
(i)     Complete a review and draft responses to the above-mentioned documents and provide draft responses to
IFCBAA and RfNSW by / on 08 January 2021 for review and comment.
(ii)    Complete subsequent commentary to support the review and suggested responses, to supplementary
information supplied by IFCBAA on 22 December 2020. Draft commentary for, and supply to IFCBAA and RfNSW by / on
15 January 2021 for review and comment.
(iii)   Complete a Final Report incorporating comments received by IFCBAA and RfNSW and deliver this by / on 29
January 2021, for submission by IFCBAA and RfNSW to TfNSW before the due date of 19 February 2020.

The major findings in this report are threefold.

Firstly, the current minor review of the Ports and Maritime Regulation 2012 and the PBLIS Mandatory Standards is a
positive step forward by TfNSW to address current port related issues. The most significant points are:
     1. The use, accuracy, and applicability of the newly introduced Automated Number Plate Recognition (ANPR)
          system is to be expanded to port approach roads and empty container parks in Botany or servicing Port Botany.
     2. Further consultation on stevedore cancellation of bookings “agreed timeframes for requirements” to allow
          further flexibility of the current 4-hour timeframes.
     3. TfNSW to invest in and implement push messages to container truck drivers via mobile telephones using SMS
          technology on changes or delays at the port.
     4. Further consultation on the definition of “Detailed Particulars”, especially when relating to “Unforeseen Events”.
     5. Better understanding of the definition of “Terminal” and its expansion to include empty container parks under
          PBLIS.
     6. A more thorough explanation for the definition of “Container” ensuring container content loading guidelines,
          misleading maximum gross weights and restricted container stacking capacity are included.
     7. Redefining the definition of “Working Day” to ensure inclusion of weekends and 24 x 7 operations.
     8. The passing down the supply chain to IFCBAA and RfNSW members all savings relating to 50% reduction in
          navigation service charges.
     9. IFCBAA and RfNSW should be supplied additional data of manifests and trends for analysis and future planning.
     10. Further consultation required regarding traffic control at ports and wharves, with specific coloration between
          this proposed change and the significant delays that occurred in 2019-20, where terminals and stevedores were
          unable to meet the demand of container trucks collecting containers in Time Zones resulting in excessive
          congestion on port and public roads.
     11. Changes to definitions and procedures of Dangerous Goods for better consistency cannot result in additional
          operational processes or compliance costs for IFCBAA and RfNSW members.
     12. IFCBAA and RfNSW must be included in the membership of the Maritime Advisory Council.

Next, there is a requirement by IFCBAA and RfNSW for further consultation regarding:
   1. An annual review of the PBLIS Mandatory Standards.
   2. Inclusion of empty container storage, handling, data, evacuation and the full life cycle of containers under PBLIS.
   3. Emerging charges and costs introduced by stevedores, shipping lines and governments require better processes
        for approval, justification before implementation and inclusion under PBLIS.
   4. The process for writing, agreement, and amendment of the Stevedore Terminal Access Agreements and
        Conditions requires PBLIS Mandatory Standard guidelines.
   5. Technological improvements in the port supply chain requires addressing challenges with two software
        providers for full and empty containers, the development of a Port Community System and better data for
        IFCBAA and RfNSW members.
   6. Time Slots per hour need to be increased from the current 54 to 85.
   7. Availability: There is a requirement for directions under PBLIS regarding how and when stevedores advertise to
        industry vessel / container availability dates. Current practices result in futile trips, unproductive Time Slots
        causing additional costs and inefficient use of container trucks.
                                                                                                                    pg. 2
8. Stevedores to have continuous improvement Key Performance Indicators (KPIs) introduced under PBLIS.
    9. Waterside space, congestion of port and port approach roads and the scoping of new futuristic ports requires
        further consultation with IFCBAA and RfNSW.
    10. An Economic Model needs to be developed and included as an annual review of costs and loss time productivity.

IFCBAA and RfNSW, believe it is now timely that a deep dive thorough analysis and review is completed to address these
items. IFCBAA and RfNSW received notice from TfNSW that this will occur at the start of the next Financial Year (FY)
being July 2021.

Lastly, this report is timely, significant, and essential for TfNSW and the NSW Government to include the feedback
supplied by IFCBAA and RfNSW and that it is taken into consideration in the current minor review and the more
comprehensive review. This is to ensure that historical inefficient practices (prior to the introduction of PBLIS) that
appear to be resurfacing, do not continue to escalte resulting in such matters as:
    (i)       Extensive truck queues at Port Botany
    (ii)      Manual processes
    (iii)     Excessive Truck Turnaround Times (TTT) at terminals resulting in minimal productivity per truck
    (iv)      “Mates structure” between certain members of the supply chain and stevedores
    (v)       Increasing costs in Terminal Infrastructure Surcharges
    (vi)      Emerging Costs such as the newly introduced Safety Surcharge.

       1.1 Project Purpose
The purpose of this project is to review and draft responses to the five documents that IFCBAA and RfNSW received
from TfNSW in December 2020 being (NSW, Consultation on the Ports and Maritime Administration Regulation 2012,
2020):
                • Consultation Draft Ports and Maritime Administration Regulation 2020
                • Regulatory Impact Statement
                • Comparison Guide to the Regulation and the Draft Regulation – shows the revised structure and
                proposed changes
                • PBLIS Mandatory Standards with proposed changes
                • Summary of proposed changes to PBLIS Mandatory Standards

To make it easier for IFCBAA and RfNSW these responses have been formulated into tables 1.0 and 2.0 later in this
report.

Discussions with IFCBAA, RfNSW and TfNSW regarding remaking the Ports and Maritime Administration Regulation 2012
and amending the PBLIS Mandatory Standards have occurred on numerous occasions, in particular since 2017. These
have occurred in either private meetings or more publicly in TfNSW and NSW Ports led forums such as the Cargo
Facilitation Committee (CFC), The Port Road Taskforce (PRT) and more recently, in the newly formed Port, Transport &
Logistics Taskforce (PTLT). References to these discussions are clearly identified in the minutes of these forums.

Although the received documents with proposed changes and amendments are a starting point, IFCBAA and RfNSW
petition inclusion in a more comprehensive review of the two instruments of government in 2021, as committed to by
TfNSW. This will commence at the start of the next Financial Year (FY) being July 2021. Further commentary that needs
to be included in this comprehensive review is supplied later in this report.

For relevance, the TfNSW NSW Freight and Ports Plan 2018-2023 makes reference to stronger coordination between
port owners, stevedores, road and rail managers and service operators, as well as managing congestion, and ensuring
there is sufficient “landside” capacity for freight (NSW, NSW Freight and Ports Plan 2018-2023, 2018, p. 28) and support
reforms to transport laws and regulatory bodies particularly -conducting ongoing reviews of NSW legislation and policies
                                                                                                                          pg. 3
governing the freight industry to ensure that it does not impose unnecessary burdens upon industry or hamper
innovation (NSW, NSW Freight and Ports Plan 2018-2023, 2018, p. 49). IFCBAA and RfNSW see this initial minor review
as a start to achieving these NSW Government commitments.

       1.2 Scope of Work
The scope of work for this project is divided into three main parts:
           (i)     Complete a review and draft responses to the above-mentioned documents and provide draft
                   responses to IFCBAA and RfNSW by / on 08 January 2021 for review and comment.
           (ii)    Complete subsequent commentary to support the review and suggested responses, to
                   supplementary information supplied by IFCBAA on 22 December 2020. Draft commentary for, and
                   supply to IFCBAA and RfNSW by / on 15 January 2021 for review and comment.
           (iii)   Complete a Final Report incorporating comments received by IFCBAA and RfNSW and deliver this by
                   / on 29 January 2021, for submission by IFCBAA and RfNSW to TfNSW before the due date of 19
                   February 2020.

        1.3 Summary of Approach
    •   Initial consultation with IFCBAA and RfNSW between 17-24 December 2020, understanding deliverables
        required.
    •   Review of current Ports and Maritime Administration Act 1995 for completeness of context.
    •   Review of current Ports and Maritime Administration Regulation 2012 and the Port Botany Landside
        Improvement Strategy (PBLIS) Mandatory Standards.
    •   Analysis of Consultation Draft Ports and Maritime Administration Regulation 2020, Regulatory Impact
        Statement, and PBLIS Mandatory Standards with proposed changes, mark up and comparison to current
        instruments of government.
    •   Analysis of Comparison Guide to the Regulation and the Draft Regulation, and Summary of proposed changes to
        PBLIS Mandatory Standards and tabulate suggested responses.
    •   Submission of completed Services 1.1(i) on 08 Jan 2021 for review and feedback.
    •   Call with IFCBAA and RfNSW on 12 Jan 2021 to receive feedback to completed Services 1.1(i).
    •   Submission of completed Services 1.1(ii) on 15 Jan 2021 for review and feedback.
    •   Email correspondence with IFCBAA on Services 1.1(ii) on 19 Jan 2021.
    •   Subsequent call with IFCBAA regarding above on 20 Jan 2021.
    •   Submission of Final Report on 29 Jan 2021 as per Delivery of the Services 1.2(iii)(c).

    2. Proposed draft documents summary of changes
The five documents reviewed in the initial stage (Services 1.1(i)) of this project, and their purpose is summarised below:
    • Consultation Draft Ports and Maritime Administration Regulation 2020
This document is a non-marked up version of the Ports and Maritime Administration Regulation 2020 that is proposed
by TfNSW to take effect 2021.
    • Regulatory Impact Statement
This document is a Regulatory Impact Statement (RIS) for the Proposed Regulation. It considers the need for and
objectives of TfNSW, alternative options to the Proposed Regulation and the costs and benefits of these options. It also
contains a summary of the three options available to TfNSW being:
1: No regulation - This option involves repealing of the 2012 Regulation with no regulation implemented in its place.
2: Remaking the 2012 Regulation – this involves remaking of the 2012 Regulation without amendment.
3: Proposed Regulation (this is TfNSW’s preferred option) – which is what is described in detail in this RIS.
    • Comparison Guide to the Regulation and the Draft Regulation
This document shows the revised structure and proposed changes and amendments. It lists the nineteen proposed
changes and amendments for the Ports and Maritime Administration Regulation 2012 for remake in 2021. As well as the

                                                                                                                   pg. 4
proposed material changes, it shows how the Regulation has been re-ordered and revised to meet current Regulation
drafting standards, including better language for readability.
    • PBLIS Mandatory Standards with proposed changes
This document is the marked-up version of the current PBLIS Mandatory Standards. The proposed changes are relatively
minimal, however do have impact to IFCBAA and RfNSW members, as listed below in table 1.0 later in this report.
    • Summary of proposed changes to PBLIS Mandatory Standards
This document lists the seven proposed changes and amendments to the current PBLIS Mandatory Standards and their
descriptions. These have been analysed and comments written against each for IFCBAA and RfNSW.

         2.1 Port Botany Landside Improvement Strategy
The Port Botany Landside Improvement Strategy (PBLIS) consists of a range of measures, fines and penalties designed to
improve landside efficiency at Port Botany and has two main objectives:
    (i)      to improve the consistency of truck turnaround times for the collection and delivery of containers; and
    (ii)     to smooth the usage of the port across the day and week.

PBLIS has increased efficiency, consistency and transparency at Port Botany and has facilitated the transition towards a
24/7 port. Between 2008 and 2010 the former Sydney Ports Corporation (SPC) worked with industry to implement
voluntary industry reform ((IPART), 2008). This voluntary agreement was not achieved. In April 2010, the then NSW
Minister for Ports and Waterways implemented new regulations which introduced fairness and equity into landside
arrangements at Port Botany. This regulation was later underpinned by the PBLIS Mandatory Standards in December
2010.

            2.1.1 History Independent Pricing and Regulatory Tribunal (IPART)
In 2008, the NSW Government engaged IPART to review the processes between the stevedores and container transport
companies at Port Botany. It made 18 recommendations in its report ((IPART), 2008) for improving landside operations.
IPART recognised that if the recommendations and proposed changes were to be implemented, they could not be
voluntary due to past experience and that if voluntary, market failure would continue to occur. They strongly
recommended the need for government intervention (Government, 2008).

           2.1.2 Framework
The main players on the landside at Port Botany therefore include the following (Ports N. , Australia’s Premier Port,
2020):
    • One port operator (NSW Ports)
    • Three stevedores who operated under different ownership
    • One rail track which splits into three stevedores, and an empty container park at Port Botany
    • One rail track owner – the Australian Rail Track Corporation (ARTC)
    • Six metropolitan intermodal terminals
    • Six train operators
    • Over three hundred and fifty road carriers
    • Software platform providers
    • Empty container parks
    • Shipping Lines, Freight Forwarders, Customs Brokers, Importers and Exports

           2.1.3 Proposed Changes and Amendments
The below table is divided into three parts, being, the proposed amendments to the current PBLIS Mandatory Standards
by TfNSW, the proposed supplementary descriptions to these amendments and the proposed responses for IFCBAA and
RfNSW back to TfNSW as part of the consultation and feedback process.

                                                                                                                    pg. 5
Table 1.0 PBLIS Proposed Changes and Proposed Responses
 Proposed 2020 PBLIS MS amendment to          Proposed 2020 PBLIS MS                     Proposed responses from IFCBAA and
 be made 2021                                 amendment descriptions to be made          RfNSW
                                              2021
     1. Clause 10 Truck Identification        -RFID tag technology has been              Support this change, however:
 Information Remove references to Radio       replaced by Automated Number Plate            (i)        how are interstate number
 Frequency Identification (RFID) tag          Recognition (ANPR)                                       plates handled?
 technology                                   technology. This amendment will               (ii)       What is the accuracy rate of
                                              reflect this change in technology,                       the ANPR technology?
                                              including by clarifying that                  (iii)      How is a misread by the
                                              the number plate must be legible to                      ANPR technology treated?
                                              ensure it can be read by the ANPR             (iv)       Can the ANPR technology
                                              technology. A definition for ‘Displays                   handle container trucks in
                                              a Legible Number Plate’                                  queues, as occurred on
                                              will be included in the Schedule 1                       numerous occasions on the
                                              Dictionary to refer to a number plate                    approach roads to the
                                              issued under the Road Transport                          stevedores during 2019-
                                              (Vehicle Registration) Regulation                        2020?
                                              2007, or by another State or Territory.       (v)        Will the ANPR technology
                                                                                                       be further expanded to
                                                                                                       include inside the stevedore
                                                                                                       gate, empty container parks
                                                                                                       and intermodal locations?

                                                                                         TfNSW should make available ANPR
                                                                                         trend data to IFCBAA and RfNSW for
                                                                                         compliance, accuracy, and future planning
                                                                                         purposes.
     2. Clause 10 Truck Identification        -This change will clarify that a Carrier   Support this change as is current practice
 Information Clarify responsibility for VBS   providing information to a Stevedore’s     today.
 supplier data transfer.                      VBS is deemed to be
                                              also providing the information to the
                                              Stevedore at the same time. This
                                              aligns with current practice.
     3. 12.4 and new 12.5 Carrier             -This amendment aligns the booking         Support this change to maintain
 Cancellation of Bookings Align the booking   cancellation penalty arrangements for      consistency.
 cancellation penalty arrangements for        exports with current arrangements for
 imports and exports                          imports, when a vessel’s receival date
                                              is changed after a booking is made.
                                              This provides consistent arrangements
                                              for import and
                                              export bookings.
     4. 14.2 Stevedore Cancellation of        -To allow greater flexibility, the         This requires further consultation with
 Bookings Remove the 4 hours booking          current timeframe of 4 hours for           IFCBAA and RfNSW as to what the
 cancellation confirmation of                 booking cancellations confirmation of      “requirement for agreed timeframes” will
 container numbers timeframe                  container numbers will be replaced         be. Also, container truck drivers and
                                              with a                                     operators are often small businesses and
                                              requirement for agreed timeframes to       often owner operated. Updating
                                              be notified on the TfNSW website.          information on the TfNSW website is not
                                                                                         the most user-friendly means to get
                                                                                         information to mobile container truck
                                                                                         drivers. At the roll out of the Cargo
                                                                                         Efficiency Operational System (CEOS)
                                                                                         training and launch, there was discussion
                                                                                         about push notifications via sms to
                                                                                         industry regarding changes such as these.
                                                                                         When will this be rolled out?

                                                                                                                               pg. 6
5.   Schedule 1 Dictionary Include a   -A definition of “Detailed Particulars”   This requires further consultation with
     definition for “Detailed          about unforeseen events that may          IFCBAA and RfNSW. The Detailed
     Particulars”                      disrupt terminal operations will be       Particulars of an Unforeseen Event as
                                       included. This definition will provide    listed in the Dictionary of the Draft Port
                                       greater clarity and assist                Botany Landside Operations Mandatory
                                       communications about events that          Standards (Mandatory Standards) provided
                                       could disrupt normal operations at the    are described as:
                                       port.                                     (a) the time the Unforeseen Event
                                                                                 commenced; and
                                                                                 (b) specification of the event or
                                                                                 circumstances constituting the Unforeseen
                                                                                 Event by reference to the meaning of that
                                                                                 expression (e.g. that the event is a
                                                                                 Significant Weather Event under the
                                                                                 definition of that expression paragraph
                                                                                 (b)(i)); and
                                                                                 (c) specification of the facts, so far as they
                                                                                 are known at the time to the person
                                                                                 required to provide Detailed Particulars
                                                                                 (e.g. in relation to a Significant Weather
                                                                                 Event the fact
                                                                                 that an electrical storm is occurring, or is
                                                                                 predicted to occur at a Terminal within a
                                                                                 specified timeframe); and
                                                                                 (d) the predicted impact on relevant
                                                                                 activities such as on Truck Servicing in
                                                                                 relation to Time zones; and
                                                                                 (e) a forecast of when the Unforeseen
                                                                                 Event will end; and
                                                                                 (a)(f) information about when and how
                                                                                 details of the Unforeseen Event will be
                                                                                 updated.
                                                                                 However, what is required for IFCBAA
                                                                                 and RfNSW members is that these Detail
                                                                                 Particulars are provided within 30 minutes
                                                                                 of the Unforeseen Event occurring, and
                                                                                 every 30 minutes thereafter, in order for
                                                                                 members to make informed decisions on
                                                                                 container truck planning for that Time
                                                                                 Zone or the length of time the Unforeseen
                                                                                 Event will continue. This information, as
                                                                                 mentioned above should be push
                                                                                 information, via sms through the CEOS.
                                                                                 Also required is a Corrective Action Plan
                                                                                 (CAP) from the terminal or stevedore to
                                                                                 prevent the Unforeseen Event from
                                                                                 occurring again. For example, what
                                                                                 measures are put in place for stevedore
                                                                                 employees to not be subject to weather
                                                                                 impacts, what measures are put in place to
                                                                                 ensure equipment is regularly maintained
                                                                                 to prevent mechanical failure, what
                                                                                 maintenance checks and balances are in
                                                                                 place to ensure stevedore gates do not
                                                                                 malfunction, what measures are put in
                                                                                 place to ensure labour and industrial
                                                                                 disputes do not escalate to the point where

                                                                                                                         pg. 7
stevedore employees either have work
                                                                                     upgrade bans or stop work altogether.
                                                                                     Lastly, Unforeseen Events for terminals
                                                                                     and stevedores MUST be restricted to the
                                                                                     operation within the stevedore gates, and
                                                                                     not events externally that MAY impact
                                                                                     operations inside the terminal or stevedore
                                                                                     gate.
     6.   Schedule 1 Dictionary Expand the   -This amendment expands the             This is not supported unless this reference
          definition of “Terminal”           definition of “Terminal” to include     is in relation to empty container parks in
                                             sub-sections of the Terminal            the Port Botany vicinity or servicing Port
                                             designated with the approval of         Botany, whereby, further consultation with
                                             TfNSW for the purpose of improving      IFCBAA and RfNSW is required to
                                             efficiency by dispersing the truck      expand the PBLIS regime to the handling
                                             servicing task, where suitable.         of empty containers.
                                             Consideration of implementing sub-
                                             sections in a Terminal would include    A full list of the specific places to be
                                             appropriate consultation.               included as “sub-sections” needs to be
                                                                                     provided for comment.
     7.   Schedule 1 Dictionary Amend the    -This aligns the definition of “Truck   Support this change
          definition of “Truck service”      Services” with “truck servicing” in
                                             clause 19 of the Regulation.

        2.2 Ports and Maritime Administration Regulation 2012
The Ports and Maritime Administration Regulation 2012 is the legislative instrument of government used to administer
the operations of the ports in New South Wales. Relevant to IFCBAA and RfNSW in particular, are: Division 1 Preliminary
5 Definitions, Part 2 Port Charges, Division 3 Furnishing of particulars and calculation of charges, Part 3 Port Botany
Landside Improvement Strategy, Part 6 Maritime Advisory Council, and Part 6B Traffic control at ports and wharves.

            2.2.1 History of Ports and Maritime Administration Regulation 2012
After the 2008 NSW Government IPART review and report mentioned earlier was completed, during the third quarter of
2010 the NSW Government introduced regulations under the PBLIS program. In the fourth quarter of 2010, data was
analysed and audited prior to application of fines and penalties.

In the first quarter of 2011 truck tracking, through Radio Frequency Identification Devices (RFID) was put in place, and in
the second quarter of 2011 a fully automated reporting system known as the Operational Performance Management
System (OPMS) for landside performance was introduced.

              2.2.2 Framework
The Ports and Maritime Administration Regulation 2012 is divided up into seven Parts, with subsequent Divisions and
Schedules. This Regulation commenced on 1 September 2012. The Regulation covers items such as PBLIS, maritime
safety, protection of the port waterways and NSW standards. These affect the Port Authority, private port operators,
including NSW Ports and Port of Newcastle, the owners, masters and crew of the trading ships that comprise the 6,200
vessel visits to ports in NSW each year, the Harbour Masters of the ports in NSW, three stevedores at Port Botany: DP
World, Patrick Stevedores and Hutchison Ports, thousands of importers and exporters, customs brokers and freight
forwarders who provide services to facilitate the movement of goods being imported and exported, container road
carriers, rail operators, rail track owners, intermodal terminals, thousands of warehouses, local residents, up to 1,200
passenger and charter vessels, a commuter wharf permit or charter wharf booking, up to 20,000 mooring licence
holders in NSW, all persons working in ports in NSW, and TfNSW.

                                                                                                                            pg. 8
2.2.3 Ports and Maritime Administration Regulation 2012 remake (changes and amendments)
As mentioned earlier in this report, three options were considered by TfNSW: no regulation; remaking the 2012
Regulation without amendment; and the Proposed Regulation. TfNSW concludes that the Proposed Regulation is the
preferred option. The Proposed Regulation is subject to a 10-week public consultation period where all submissions will
be considered in the finalisation of the proposal. If made, the Proposed Regulation to take effect in 2021.

The proposed nineteen changes and amendments affect Part 1 Preliminary, Part 2 Port charges, Division 1 Preliminary,
Division 2 Information required for calculation of charges, Part 6 Port Botany Landside Improvement Strategy, Division 1
Preliminary, Division 2 Booking and gate Procedures, Division 3 Operational performance of carriers, Division 4
Operational performance of stevedores, Division 5 Confidentiality of information, Division 6 General, Part 4 from the
2012 Regulations has been moved to Schedule 1, Part 6 from the 2012 Regulations has been moved to Schedule 5,
Part 3 Commuter wharf permit Scheme, Part 5 Traffic control at ports and wharves, Part 4 Mooring licences
Division 1 Mooring licences, Division 2 Miscellaneous, Part 8 Miscellaneous, Part 7 Management of dangerous
Goods, Division 1 Preliminary, Division 2 Notice of dangerous goods, Division 3 Bringing dangerous goods into ports,
Division 4 Handling dangerous goods generally, Division 5 Handling explosives, Division 6 Handling radioactive
Goods, Division 7 Handling restricted chemicals, Division 8 Handling bulk dangerous goods, Division 9 Miscellaneous, -
Part 7 includes modifications to language, Part 8 Miscellaneous, Schedule 5 Members and procedure of Maritime
Advisory Council, Schedule 3 Charter wharves, Schedule 4 Mooring licence fees, Schedule 6 Penalty notice offences
Schedule 3 Charter wharves and Schedule 2 Commuter wharves.

Table 2.0 below, is divided into three parts, being, the 2012 Regulation as it stands today, the proposed TfNSW 2020
changes and amendments to be remade in 2021, and the proposed responses for IFCBAA and RfNSW back to TfNSW as
part of the consultation and feedback process.

Table 2.0 Proposed Changes and Proposed Responses to the proposed Regulation
 2012 Regulation as stands today         Proposed 2020 Regulation to be                Proposed responses from IFCBAA and
                                         remade 2021                                   RfNSW
 Part 1 Preliminary                      Part 1 Preliminary
                                         -Updates to reflect the merger of Roads       Support this change. All references to
                                         and Maritime Services (RMS) and               Roads and Maritime Services (RMS)
                                         Transport for                                 should be replaced with Transport for
                                         NSW in 2019                                   NSW (TfNSW) regarding the Ports and
                                                                                       Maritime Administration Act (PAMA),
                                                                                       the Regulation and the Port Botany
                                                                                       Landside Improvement Strategy (PBLIS).
 Part 2 Port charges                     Part 2 Port charges
 Division 1 Preliminary                  Division 1 Preliminary
 Division 2 General principles           Division 2 Information required
 for calculation of charges              for calculation of charges
 Division 3 Furnishing of particulars
                                         - A revised definition of “container” to      Requires further consultation with
                                         more closely align NSW requirements           IFCBAA and RfNSW to ensure the
                                         with relevant                                 thorough definition as per the
                                         national and international standards, as      International Convention for Safe
                                         set out in the International Convention for   Containers 1972 [clause5(1)] is included.
                                         Safe Containers 1972 [clause 5(1)].           Also, further consultation is required
                                                                                       regarding:
                                                                                                (i)      container content
                                                                                                         loading guidelines
                                                                                                (ii)     prevention of containers
                                                                                                         being marked with
                                                                                                         misleading maximum
                                                                                                         gross weight

                                                                                                                           pg. 9
(iii)    and restricted container
                                                                                                         stacking capacity.

                                                                                       Working day, in relation to a port, means
                                                                                       the part of the day, that is not a Saturday,
                                                                                       Sunday or public holiday, during which
                                                                                       work is normally carried on in the port.
                                                                                       This needs revision as ports operate 7
                                                                                       days a week and predominately 24 hours
                                                                                       a day.

                                        -The principles applied to charging for        Support this change, as it does not
                                        goods in bulk are to be applied only to        directly affect IFCBAA or RfNSW
                                        goods that have been loaded or                 members.
                                        discharged from a hold or tank
                                        of a vessel [clause 6].

                                        -Vessels that make more than one entry to      Support this change, however this should
                                        Port Botany and Sydney Harbour, without        further be expanded to apportion this
                                        entering                                       savings down the supply chain to
                                        another port, will receive a 50 per cent       IFCBAA and RfNSW members and end
                                        reduction on the navigation service            uses, whether the 50% reduction relates
                                        charge for subsequent entries [clause 7        to container vessels or fuel bulk vessels.
                                        (b)].

                                        -Information to be provided for a site         Support this change, as it does not
                                        occupation charge will include the             directly affect IFCBAA or RfNSW
                                        purpose for which the site is sought           members.
                                        [clause 11(1) (a)].

                                        -At Port Kembla, the manifest for goods        Support this change, however this
                                        discharged from the vessel is to be            manifest data should be de-identified and
                                        provided by the end of the third working       provided to IFCBAA and RfNSW for
                                        day after the vessel enters the port [clause   trend analysis and future planning.
                                        13(2) (a)].                                    Support this change, as it does not
                                        -Information relevant to the calculation of    directly affect IFCBAA or RfNSW
                                        berthing charges is no longer required in      members.
                                        triplicate [clause 15(1)].
Part 3 Port Botany Landside             Part 6 Port Botany Landside
Improvement Strategy                    Improvement Strategy
Division 1 Preliminary                  Division 1 Preliminary
Division 2 Booking and gate             Division 2 Booking and gate
procedures                              Procedures
Division 3 Operational performance of   Division 3 Operational
carriers                                performance of carriers
Division 4 Operational performance of   Division 4 Operational
stevedores                              performance of stevedores
Division 5 General                      Division 5 Confidentiality of information
                                        Division 6 General

                                        -The procedures for booking
                                        cancellations have been removed from           Support this change, however any
                                        the regulation (clause 29                      proposed changes by TfNSW to the
                                        in the 2012 regulations) and will be           current procedure MUST have thorough
                                        included unchanged in the mandatory            consultation with IFCBAA and RfNSW
                                        standards.                                     prior.

                                                                                                                           pg. 10
-Transitional clauses relating to the     Support this change. All references to
                                          transfer of the PBLIS from Sydney Ports   Roads and Maritime Services (RMS)
                                          to TfNSW have been removed (clauses       should be replaced with Transport for
                                          39A (5) (d1) and 39B                      NSW (TfNSW) regarding PAMA, the
                                          in the 2012 regulations).                 Regulation and the Port Botany Landside
                                                                                    Improvement Strategy (PBLIS).
Part 4 Port Boundaries                    -Part 4 from the 2012 Regulations has     Support this change, as it does not
                                          been moved to Schedule 1.                 directly affect IFCBAA or RfNSW
                                                                                    members.
Part 5 (Repealed in 2012)                                                           Supported
Part 6 Maritime Advisory Council          -Part 6 from the 2012 Regulations has     Support this change, however IFCBAA
                                          been moved to Schedule 5.                 and RfNSW should be included in the
                                                                                    Minister (s) Maritime Advisory Council.
Part 6A Access to wharves                 Part 3 Commuter wharf permit
Division 1 General                        Scheme
Division 2 Commuter wharf permit
scheme                                    -The permit allows the normal maximum     Support this change, as it does not
Division 3 Charter wharf booking system   berthing time of 5 minutes or another     directly affect IFCBAA or RfNSW
                                          timeframe if specified by the permit      members.
                                          (clause 18(4)).
Part 6B Traffic control at ports and      Part 5 Traffic control at ports and
wharves                                   wharves

                                          -Minor rewording and restructuring        This requires further consultant with
                                                                                    IFCBAA and RfNSW, and NOT minor
                                                                                    “rewording or remaking” without
                                                                                    amendment. There were numerous
                                                                                    occurrences throughout 2019-2020,
                                                                                    where terminals and stevedores were
                                                                                    unable to meet the demand of container
                                                                                    trucks collecting containers in Time
                                                                                    Zones, even though these container trucks
                                                                                    all had pre-arranged bookings under the
                                                                                    PBLIS regime. IFCBAA and RfNSW
                                                                                    made representations to the former
                                                                                    TfNSW Cargo Movement Coordination
                                                                                    Centre (CMCC), the stevedores, the port
                                                                                    operator (NSW Ports) and the Ministers
                                                                                    offices. Government action is required to
                                                                                    ensure that terminals and stevedores have
                                                                                    sufficient operators to load container
                                                                                    trucks when a surge of volume occurs, as
                                                                                    well as TfNSW, port operators and
                                                                                    stevedores have sufficient authority to
                                                                                    manage container truck and vehicle
                                                                                    traffic inside the stevedore gate, as well
                                                                                    onto private port and public roads, such
                                                                                    as Penryhn, Foreshore and Botany Roads
                                                                                    and port approach roads. The Proposed
                                                                                    changes need to include this.
Part 6C Mooring licences                  Part 4 Mooring licences
                                          Division 1 Mooring licences
                                          Division 2 Miscellaneous

                                          -The requirement for courtesy and         Support this change, as it does not
                                          emergency mooring licenses has been       directly affect IFCBAA or RfNSW
                                          removed (clause 67W (1) in 2012           members.
                                          regulations).

                                                                                                                       pg. 11
-Clarification that a mooring licence is       Support this change, as it does not
                                      not a property right [clause 27(9].            directly affect IFCBAA or RfNSW
                                                                                     members.

                                      -Clarification that notification is required   Support this change, as it does not
                                      where a vessel vacates or is absent from a     directly affect IFCBAA or RfNSW
                                      mooring for a period of 28 consecutive         members.
                                      days [clauses
                                      (31(1) and 34(2)].

                                      -New provision for an application to           Support this change, as it does not
                                      transfer a mooring licence from a person       directly affect IFCBAA or RfNSW
                                      acting on behalf of the licensee in certain    members.
                                      circumstances [clause 32(2)].

                                      -New provision providing a process for
                                      managing a mooring licence if a licence        Support this change, as it does not
                                      holder is deceased [clause 37(2)].             directly affect IFCBAA or RfNSW
                                                                                     members.
Part 6D General safety provision      Part 8 Miscellaneous

                                      -Minor rewording and restructuring.            Support this change, as it does not
                                                                                     directly affect IFCBAA or RfNSW
                                                                                     members.
Part 11 from the repealed Dangerous   Part 7 Management of dangerous
Goods (General) Regulation 1999       goods
                                      Division 1 Preliminary
                                      Division 2 Notice of dangerous
                                      goods
                                      Division 3 Bringing dangerous
                                      goods into ports
                                      Division 4 Handling dangerous
                                      goods generally
                                      Division 5 Handling explosives
                                      Division 6 Handling radioactive
                                      goods
                                      Division 7 Handling restricted
                                      chemicals
                                      Division 8 Handling bulk dangerous
                                      goods
                                      Division 9 Miscellaneous

                                      -Part 7 includes modifications to              As Part 7 requires compliance to the
                                      language and requirements to more              requirements of the IMDG Code, the
                                      closely align with other dangerous goods       International Maritime Solid Bulk
                                      legislation. In particular, definitions such   Cargoes Code (IMSBC Code), Australian
                                      as explosives, gas and other classes of        Standard AS 3846-2005 The handling
                                      dangerous goods are aligned with the           and transport of
                                      International Maritime Dangerous Goods         dangerous goods in port areas (AS 3846)
                                      (IMDG) Code [clause 68] and a provision        and the Safe Transport for Radioactive
                                      is included on the relationship with           Material Code that apply to the
                                      Commonwealth law [clause 67].                  identification, marking, labelling,
                                                                                     placarding, separation and segregation,
                                                                                     stowage, classification, packaging,
                                                                                     handling and testing
                                                                                     of the dangerous goods being handled and
                                                                                     transported in the port.

                                                                                                                       pg. 12
Part 7 also imposes specific notification,
                                                               approval, operational and reporting
                                                               requirements on the transport and
                                                               handling of dangerous goods in the port.
                                                               In addition, Part 7 assigns responsibility
                                                               for compliance to the person(s) or
                                                               entity(ies)
                                                               in the supply chain who are in the best
                                                               position to control the way in which the
                                                               goods are handled. For example:
                                                               -consignors are responsible for ensuring
                                                               compliance with the notification,
                                                               approval and declaration requirements,
                                                               packaging requirements and terminal
                                                               time limits;
                                                               -masters are responsible for ensuring
                                                               compliance with the conditions of an
                                                               approval and with the standards or
                                                               requirements for loading, unloading and
                                                               handling dangerous goods; and
                                                               -terminal operators are responsible for
                                                               ensuring compliance with handling
                                                               requirements and with terminal time
                                                               limits.
                                                               The consistency in processes that this
                                                               change seeks to achieve, CANNOT result
                                                               in additional operational processes and
                                                               compliance costs to IFCBAA and
                                                               RfNSW members. Additional processes
                                                               and costs should be borne by TfNSW,
                                                               port operators and the stevedores.

                                                               Clarification required as to whether the
                 -Obligations have been more clearly           proposed obligations relate to IFCBAA
                 placed on: - Consignors or agents             and RfNSW members. If so, detailed
                 (Clauses 88 and 91. More generally,           particulars are required by TfNSW, prior
                 clauses 73, 74, 77, 79, 82,83, 88, 91 and     to further comment.
                 98); and - Terminal operators (Clauses
                 87, 89 and 94. More generally, clauses
                 74, 79, 82,
                 83, 84, 87, 96 and 97).
                                                               Further consideration MUST be given to
                 -The terminal time limits for some            weekend and public holidays, where
                 dangerous goods have been changed from        parties involved in the notification often
                 2 to 12 hours, including for some types of    operate business hours Monday to Friday
                 explosives, low                               0900-1700, such as shipping lines.
                 specific activity radioactive goods and
                 restricted chemicals [clause 101].
                                                               Detailed particulars are required to
                                                               comment.
                 -Other structural and wording changes
                 have been made to improve readability.
Part 7 General   Part 8 Miscellaneous
                 - Includes Part 6D from 2012 regulations      Support this change, as it does not
                 relating to disturbance of the sea bed in a   directly affect IFCBAA or RfNSW
                 port [clause 108].                            members.

                                                                                                      pg. 13
Schedule 1 Description of port           Schedule 1 Port boundaries
 boundaries
                                          -No changes                               Supported
 Schedule 2 (Repealed in                                                            Supported
 2012)
 Schedule 3 Membership and                Schedule 5 Members and procedure of
 procedure of Maritime Advisory           Maritime Advisory Council
 Council
                                          -Minor rewording and restructuring only   Further consultation is required to
                                                                                    provide greater transparency regarding
                                                                                    the establishment, membership and
                                                                                    procedures of the MAC. The Proposed
                                                                                    Regulation remake should not proceed
                                                                                    without amendment.
 Schedule 3A Commuter wharf               Schedule 3 Charter wharves
 permit fees
 Schedule 3B Charter wharf booking        -Updated charter wharf booking fees.      Support this change, as it does not
 system fees                                                                        directly affect IFCBAA or RfNSW
                                                                                    members.
 Schedule 3C Mooring licence fees         Schedule 4 Mooring licence fees

                                          -A replacement mooring licence fee is     Support this change, as it does not
                                          specified as $25.                         directly affect IFCBAA or RfNSW
                                                                                    members.
 Schedule 4 Penalty notices               Schedule 6 Penalty notice offences

                                          -Restructuring of existing content into   Support this change, as long as there is no
                                          this schedule                             impact to PBLIS Penalty regime.
 Schedule 5 Charter wharves               Schedule 3 Charter wharves
 Schedule 6 Commuter wharves              Schedule 2 Commuter wharves

                                          -Updated wharf names.                     Support this change

    3. The International Forwarders & Customs Brokers Association of Australia and Road Freight NSW Commentary
        and Position on Regulation Changes and Amendments
Subsequent to the minor review, proposed minor changes and amendments to the Ports and Maritime Regulation 2012
and PBLIS Mandatory Standards as well as the IFCBAA and RfNSW responses earlier in this report, this section will
highlight an urgent requirement for a more significant review of these two instruments of government.
PBLIS, as mentioned earlier, was specifically designed and implemented to improve the port and landside interface and
remove lengthy queues and congestion from the ports, whilst reducing unnecessary costs to the supply chain and
ultimately end-use consumers. Since the implementation of PBLIS in 2010 there has only been minor changes and
amendments made in 2015 (CMCC, 2015). Emerging charges and costs have been introduced by stevedores, shipping
lines and governments, as well as technological improvements in the port supply chain, both globally and within
Australia. IFCBAA and RfNSW, believe it is now timely that a deep dive thorough analysis and review is completed to
address these items. IFCBAA and RfNSW received notice from TfNSW that this will occur at the start of the next FY being
July 2021. The below commentary is to be considered now in preparation for this review.

            3.1.1 Containment and Control of Stevedore Charges
On 3 April 2017, DP World Australia (DPWA) introduced a Terminal Infrastructure Surcharge (Management, 2017) at
their Sydney terminal, as part of the basis for which access to the terminal is granted for both road and rail operators.
Their argument at the time was that property costs at their Sydney terminal had risen considerably in previous years,
and that the introduction of a third stevedore, Hutchinson Ports in 2014 (Ports H. , Our Ports, 2014) had driven excess
stevedoring capacity and competition driving down service pricing, as well as consolidation of the shipping industry

                                                                                                                       pg. 14
giving shipping lines the ability to negotiate better stevedoring rates. They argued that since 2013, they had incurred
material increases in the costs of occupancy of more than 30%, including the cost of council rates, land tax, rent and
terminal infrastructure maintenance. The surcharge was introduced at $21.16 per full container received or delivered via
road or rail at their Sydney terminal. This charge has regularly increased since then to $91.00 on 01 January 2020
(Australia, DP World Australia Customer, 2019), and then revised on 08 May 2020 to $84.50 per full container export
container and $112.10 per full container import container (exclusive of GST).

Later that same year on 10 July 2017, their competitor Patrick Stevedore introduced a Terminal Infrastructure Surcharge
of $25.24 per full container at the Sydney terminal (Loaded, ATN Fully Loaded Industry News, 2017). They also argued
that rent, land tax and council rates placed significant additional cost burden on their operations. In addition, they
incurred rising terminal infrastructure maintenance costs relating to the landside interface operations. Since its
implementation, the charge has continuously increased to now $84.90 + GST on export containers and $117.85 + GST
per import container commencing 01 March 2021 (Stevedore, Patrick Stevedore Customer Information, 2021).

Hutchinson Ports Sydney followed both competitors introducing a $10.45 Terminal Infrastructure Surcharge per full
container effective 25 June 2018 (CTAA, 2018), their reasoning similar to DPWA and Patricks Stevedore, however also
advising that the funds would further support the competition of their terminal. This surcharge is now $88.83 per full
container effective 08 September 2020 (Ports H. , Landside Tariffs, 2020).

Table 3.0 below is an illustration of the introduced Terminal Infrastructure Surcharges and their increases. Appendix 1.0
references these charges and others that have significantly increased at Port Botany such as Vehicle Booking System
(VBS) fees.

Table 3.0 Port Botany Stevedore Terminal Infrastructure Surcharges (All Subject to GST)
 Stevedore                Terminal Infrastructure Surcharge
                          Dates of Commencement and Amounts to be Charged
 DP World Australia       03/04/2017      01/01/2019        01/01/2019    01/01/2020           08/05/2020
                          $21.16          $37.65            $63.80        $91.00               $84.50 export
                                                                                               $112.10 import

 Patrick Stevedore        01/06/2017    05/03/2018        04/03/2019        09/03/2020         01/03/2021
                          $25.45        $41.10            $77.50            $82.50 export      $84.90 export
                                                                            $114.50 import     $117.85 import
 Hutchinson Ports         25/06/2018    24/02/2019        18/11/2019        08/09/2020         15/3/2021
 Sydney                   $10.45        $35.84            $63.11            $88.83             $135.65

Both IFCBAA and RfNSW have lobbied continuously, both in private meetings and more publicly, the Australian
Competition and Consumer Commission (ACCC) (News, 2017) , TfNSW and Federal and State Ministers to initially abolish
the Terminal Infrastructure Surcharge, but considering this was not acted upon, later to have it halted from further
increase subject to a more level playing field and review on where this charge should rest. IFCBAA and RfNSW argue that
this charge should be borne by the shipping lines and not downline to transport companies, customs brokers, freight
forwarders, importers and exporters and finally, after marking up, to end use consumers.

The Australian Competition and Consumer Commission’s (ACCC’s) latest “Container Stevedoring Monitoring Report
2018-19” (ACCC, ACCC Container stevedoring monitoring report 2018-19, 2020) advises that the financial burden of the
Terminal Infrastructure Surcharges as at last FY was at $256 million, not including increases in other charges in the
container logistics chain.

The NSW Transport Minister in December 2019 wrote to the stevedores telling them that they must act responsibly and
immediately put a stop to any price hikes (Review, AFR Exclusive, 2019), however no further action was taken by the

                                                                                                                  pg. 15
NSW Government and TfNSW, and the following year, more increases continued. The NSW Transport Minister referred
the increases to the NSW Productivity Commissioner in 2019 for his review (Review, AFR Ports DP World 'snubs' Andrew
Constance, hikes port fees, 2020), and IFCBAA and RfNSW have had multiple discussions with the NSW Productivity
Commissioner, however to date, no finalisation of his review or a report has been forthcoming.

During November 2020, the States Transport Ministers collectively acknowledged that there are concerns in the
container transport and logistics chain, and that a soft-touch government approach is required (Loaded, ATN Fully
Loaded Industry News TIC GIVES NTC CARRIAGE OF STEVEDORE CONTAINER ACCESS CHARGES, 2020). The Transport and
Infrastructure Council (TIC) have stated that "Ministers endorsed for the National Transport Commission [NTC] to
develop voluntary national guidelines for applying stevedore infrastructure and access charges (both their introduction
and increase) at Australia’s container ports”, and "The introduction and setting of charges at container ports has flow-on
effects throughout the supply chain. "The development of these guidelines will provide greater certainty and
transparency for both stevedores and landside transport operators and support continued investment in terminal
facilities". IFCBAA and RfNSW welcome this and will offer expert advice to TfNSW on what to advocate for, however, as
has been proven historically, prior to government intervention with PBLIS, voluntary guidelines have not been
successful.

IFCBAA and RfNSW strongly recommend that TfNSW investigate global best practices into the handling of the Terminal
Infrastructure Surcharges, such as the Port of Piraeus (Piraeus, 2005). At this port, its tariff structure is comprehensive
and extensive, similar to ports in NSW. The port has over 25 regulations, each being a document governing a specific
aspect of its operation. Of these regulations, 10 have tariffs embedded in them. As the port is a monopoly, all of its
regulations and tariffs are mandatory bylaws to clients using the port’s services. Excluding confidential rates, all tariffs of
the port are public and are published. The rates go into minute detail for every conceivable service rendered by the port.

The law stipulates that the process of rate increase requires the port to present a comprehensive business case for
consideration, displaying clearly where each increased revenue dollar will be attributed to, and the productivity
improvements for each additional dollar received. If the business case is supported, it initially requires approval by the
port’s Board of Directors, and then by the Ministry of National Economy. Only rate decreases do not need Ministerial
approval. The current Ports and Maritime Regulation 2012 and PBLIS Mandatory Standards do not require TfNSW or the
Minister to approve increases in charges, more so, simply for the stevedores to give 60 days’ notice to government of
the proposed increase with limited information or detail of explanation. IFCBAA and RfNSW recommend, that through
already established government and industry forums, such as the PTLT, that the above-mentioned Port of Piraeus
example is implemented and expanded upon.

Recently on 04 January 2021, Patrick Stevedore introduced a new surcharge named a 'Safety' Surcharge at their Brisbane
terminal (Stevedore, Patrick Stevedore Customer Information, 2020). This will presumably be also introduced at Port
Botany. This Surcharge is for import containers where the declared weight varies from the actual recorded weight by
Patrick Stevedore using their weighing device. A Weight Amendment Fee $230.00 per container plus GST will apply to all
containers determined to have a weight variance of greater than +/- one metric tonne within the documented weight
and will be charged to the container transport organisation.

IFCBAA and RFNSW support the importance of accurate container weight declarations, particularly through
technological advancements mentioned later in this report.

This fee is another example of a new charge levied onto the supply chain, with minimal justification. As mentioned
above, this fee is an example that should be included in the proposed Port of Piraeus model recommended and included
in the more comprehensive regulatory review later this year.

                                                                                                                       pg. 16
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