Freight Transport

While Shipping Australia Ltd welcomes the discussion paper on reforming Australian shipping in terms of its objectives and the financial issues outlined, CEO Llew Russell said that there are proposals that give cause for serious concern, such as those applying to coastal shipping

"The 100-year-old coastal permit system was itself a compromise between the competing interests of the shipowners and the shippers of coastal cargo," said Russell "A two-year temporary licence as proposed is only available if in the long-term interests of a sustainable and competitive Australian shipping industry This will not meet the interests of Australian shippers of coastal cargo"

He added that, under the current system, if a licensed Australian flag vessel is available on the coast a permit cannot be issued "Why change a system if it ain't broke?" he asked

Russell said the result was likely to be higher costs, which in turn will mean more cargo on the rail system and/or import substitution

The Minister has correctly suggested that increased shipping will reduce Australia's carbon footprint, but the new coastal shipping policy will have the opposite effect

"The Minister mentioned the proposals arose from the recommendations of the Parliamentary Committee that inquired into coastal shipping policy as well as an industry advisory group," said Russell "SAL was not represented on that group, despite being an organisation of members heavily involved in the carriage of Australia's international trade and providing services to many Australian companies shipping cargo around our coast"

SAL will make a detailed submission on these proposals