TASPORTS has increased its charges for King Island shipping by about 7 per cent even as the Tasmanian Economic Regulator runs an inquiry into Bass Island Line.
Rumblings of discontent are continuing on King Island because few customers were aware of the regulator’s visit to the island at the end of May.
The increases are wharfage 6.9%, tonnage 6.5%, pilotage 6.7%, towage 6.8%, general 7.7% and will take effect from July 1.
The Regulator did not undertake an awareness campaign nor any advertising of their proposed visit, and it appears that they are not required to do so despite the island visit’s objective being to meet with customers to inform the inquiry.
King Island’s two largest cattle producers Waverley Station and TRT Pastoral, a large agricultural contractor, island fertiliser importer, or Besties were not asked to meet.
The beef producers heard of the visit by an email from KIRDO that was distributed after OTTER arrived on the island.
“It was poor communication from them,” Beef Producers Group president Nick Lyttle said.
“There was not enough notice to pull together figures.
“We are planning to put in a submission.”
Elders did receive an email a few weeks before the visit, but there was no follow-up.
“The Regulator has identified key stakeholders to consult with, namely major customers, intermediaries involved in the King Island freight task, and those who have been in touch with the Regulator’s office,” the OTTER said.
“These groups were identified as being best placed to help address the Terms of Reference of the inquiry, with particular reference to Terms of Reference 4: Bass Island Line’s pricing behaviour impacts on other competitors and upstream and downstream supply chain participants.
Owner of Eastern Line Shipping Warren Dick met with OTTER after they left the island.
“I met with OTTER just after they had completed their research on the island.
“I was surprised that they hadn’t met with farmers and with people who had contacted them by actively reaching out.
“The people of King Island are customers, from the once-a-year box bringing to or sending from the island.
“Being an island, the costs and pricing directly affect everyone.
“I have questions: Will the King Island people actually get an honest and transparent review? What is the quality of the report going to be and how much will be filtered.”
Mayor Marcus Blackie was not aware of their visit. A few businesses that did receive an email a couple of weeks before OTTER’s visit had not received an appointment confirmation.
Other businesses who consider themselves customers were not invited or informed.
“We were very busy with meetings and met with a lot of people,” the director of OTTER, Kirstan Long said before leaving the island.
Mr Blackie was unaware of the regulators’ visit until advised by the Courier and organised a meeting.
“I and the head of our shipping executive Greg Morris were able to spend over an hour with the two representatives,” he said.
“I was able to cover the big picture aspects for King Island and Greg was able to drill down into a range of good examples and observations that ticked off their Bass Island Line shipping pricing inquiry terms of reference.
“We were then able to propose possible solutions for the regulator to consider and articulate our future aspirations for an ideal triangular shipping service, underpinned by a major harbour expansion at Grassy to bring in bigger ships in all weather.”
Freight forwarders Currie Cargoes and Jim McKenzie Agencies also met with the regulator and Mr Mc Kenzie said that he was able to demonstrate that changes, price increases and conditions imposed by Bass Island Line have led to major cost and pricing escalation.
Ms Long said there werer no no plans to return to the island at this time.
“The regulator is also happy to receive submissions from any interested parties who would like to provide input into the inquiry.”
“TasPorts has endeavoured to minimise the impact of any adjustments in port charges for the upcoming financial year,” the company said.
TasPorts said its pricing recognises current national and Tasmanian CPI, while also taking into consideration any difficulties and challenges that the industry may be facing.
“Our ongoing objective is to ensure that any adjustment in port charges is fair and reasonable, and aligned with our steadfast commitment to continual investment in our assets, so as to deliver real value for our customers,” the company said.
“TasPorts has a clear vision for the future of the state’s multi-port system and is developing fit-for-purpose infrastructure to facilitate future growth and demand.
“This year’s increase, below the Tasmanian December 2022 CPI of 7.7% and National CPI of 7.8%, will support TasPorts’ ongoing investments, ensuring satisfactory service levels across Tasmania’s multi-port system.
“TasPorts continues to streamline its internal pricing knowledge and ability to ensure the most appropriate charges are being set going forward,” the statement said.