WA’S ports continue to shake up the nation’s towage sector with Fremantle indicating it may follow Bunbury in offering highly lucrative towage work to overseas interests.
The Fremantle Port Authority could offer exclusive licenses for the towage business, understood to be worth $20 million annually, if efficiencies can be gained.
The port is understood to be particularly targeting reductions in towage fees which represent 30 per cent of ship visit costs.
Likely bidders are Adsteam-Howard Smith subsidiary Stirling Harbour Services which now provides towage at Fremantle and the outer harbour at Kwinana and Riverwijs, a joint venture between Riverside Marine of Brisbane and Dutch Towage giant Wijsmuller.
Singaporean towage companies contending with a crowded local market – which have shown latent interest in Bunbury – are expected to lodge submissions which are due on February 1.
Fremantle’s announcement follows September’s landmark Federal Court decision which rejected Ad-steam’s appeal against the Bunbury Port Authority’s granting of an exclusive license to newcomer Riverwijs.
Appointment of the joint venture between Riverside Marine of Brisbane and Dutch towage giant Wijsmuller paved the way for foreign competition.
FPA chief executive officer Kerry Sanderson said an exclusive licence would only be issued if it resulted in efficiencies.
Another alternative was to issue a number of non-exclusive licences or continue with existing arrangements.
