Jan Davis: Tasmanian farmers alarmed at Port of Melbourne alienation

The Victorian Government’s decision to lease the Port of Melbourne to the private sector has sent shock waves through the Tasmanian agriculture sector.

Farmers fear there will be steeper increases in charges for handling their produce than if the port had stayed in government hands yet there is no alternative port available.

The Victorian government confirmed today that under the federal government’s 15 per cent bonus to encourage states to sell their assets, it would lease out the Port of Melbourne for at least the next 40 years to pay for major infrastructure projects.

In a separate move the government has sold the rights to build a third international container terminal at the port to an international consortium of Anglo Ports Pty Ltd and Philippines-based group International Container Terminal Services Inc.

Tasmanian Farmers and Graziers Association chief executive Jan Davis said today the potential impact on Tasmania was immense.

“Tasmania is the biggest single customer of the Port of Melbourne. Up to 30 per cent of freight passing through the port is dispatched from, or destined for, Tasmania,” she said.

“Nearly half of that – 12 per cent of all movements – comes from Tasmanian farmers.

“We have no option but to send our produce through that port, as it is effectively the only access we have to the mainland and to export markets.”

Ms Davis said user charges had increased enormously recently over recent times. While a private enterprise operator might be expected to run a more efficient port administration, they would also seek to maximise profits. There is no incentive for savings to be passed through to farmers, or other customers.

“Handing that gateway to a private corporation that’s driven by shareholder returns raises serious alarm bells for Tasmanian farmers who have no real alternative for shipping their products,” Ms Davis said.

“We’re urging the Tasmanian premier to make representations to his Victorian counterpart to ensure that measures are put in place to prevent exploitation of what is essentially a captive customer base.”
TFGA chief executive Jan Davis