The competition watchdog has agreed to allow DP World Australia and Patrick Stevedores to give preferential treatment to trucks engaging in dual runs in an effort to improve efficiency at the Port of Fremantle.
The competition watchdog has agreed to allow DP World Australia and Patrick Stevedores to give preferential treatment to trucks engaging in dual runs in an effort to improve efficiency at the Port of Fremantle.
A dual run is where a truck both delivers and collects a container in a single trip.
In a statement the Australian Competition and Consumer Commission said the arrangement does not allow DP World and Patrick to agree on the price or the number of slots they make available at their terminals for booking by truck carriers.
DP World and Patrick operate the only two container terminals at the port.
The proposed arrangement is intended to address road congestion at the Port and improve operational efficiency.
"The ACCC accepts that the proposed arrangement is likely to result in an increase in the efficiency of the Port of Fremantle and a reduction in the number of trucks moving to and from the port, to the benefit of the surrounding community and the environment," ACCC chairman Graeme Samuel said.
The decision has been welcomed by the Transport Forum WA.
Manager of freight operations Tom Maughan said it will take some time before the decision has an impact on efficiency and congestion at the Port.
"It can't have an impact yet as it now paves the way for a rewrite of the booking system software," he said.
He said the stevedores will also have serious logistical issues to address.
"In the early stages as to how it can operate on the Port of Fremantle whereby carriers can arrive at one terminal and yet have the ability to go out of that door and go into another door on the same booking number," said Mr Maughan.
He said the changes could take anywhere from six months to a year.
See ACCC statement below:
The Australian Competition and Consumer Commission proposes to allow DP World Australia Limited and Patrick Stevedores Operations Pty Ltd to give preferential treatment to truck carriers engaging in dual runs (where a truck both delivers and collects a container in a single trip) at the Port of Fremantle.
DP World and Patrick operate the only two container terminals at the port and provide stevedoring services at their respective terminals.
The arrangement does not allow DP World and Patrick to agree on the price or the number of slots they make available at their terminals for booking by truck carriers.
The proposed arrangement is a government and industry initiative, intended to address the problem of road congestion at the Port of Fremantle and its effect both on the efficiency of the port's operations and on the surrounding community.
"The ACCC accepts that the proposed arrangement is likely to result in an increase in the efficiency of the Port of Fremantle and a reduction in the number of trucks moving to and from the port, to the benefit of the surrounding community and the environment," ACCC chairman Graeme Samuel said.
The ACCC considers that there are limited public detriments that may arise from the proposed arrangement. The applicants will continue to individually decide on truck carrier access pricing, the total number of slots available and the level of service offered to truck carriers.
The ACCC proposes to grant authorisation for five years.
