Tuesday, 26 July 2016
The Independent Pricing and Regulatory Tribunal (IPART) is seeking public comment on draft recommendations for maximum site occupation charges in 2016-17 for cruise ships using berthing facilities in Sydney Harbour. Under IPART’s draft recommendations, maximum site occupation charges would be:
- $80,375 per call/visit to the Overseas Passenger Terminal (OPT) in Circular Quay
- $32.60 per passenger at the White Bay Cruise Terminal (WB5) near Balmain, and
- $16.30 per passenger at White Bay 4 (WB4).
IPART is also recommending that the charges be updated each year based on any change in the consumer price index, plus an additional adjustment if future demand varies substantially from forecasts.
IPART Chairman Dr Peter Boxall, said that the review has found that the Port Authority of NSW has been efficient in operating and maintaining the cruise terminals.
“The draft recommendations are based on ensuring that the cruise industry is only paying for the efficient costs of these facilities and that the Port Authority is able to continue managing the terminals for the long term benefit of NSW,” Dr Boxall said.
“The different pricing arrangements at OPT and White Bay reflect our view that there are separate markets at these locations given the limitations on large ships passing under the Sydney Harbour Bridge.”
“We consider that a per call charge would be more cost-reflective for the larger ships that use OPT, while a per passenger charge would assist the Port Authority increase utilisation for smaller ships at White Bay,” Dr Boxall said.
The draft recommendations compare to the Port Authority’s proposed charges in 2016-17 of $35 per passenger at OPT and WB5 (up from the current $30 per passenger) and $17.50 per passenger at WB4 (up from $15).
Under IPART’s draft recommendations, the majority of ships would pay less than the charges proposed by the Port Authority of NSW. The impact of the draft recommendation to charge per call or visit at OPT would depend on the size of the ship, with an estimated 87% of larger ship visits to OPT paying less than or equal to the Port Authority’s proposal.
Dr Boxall said that with OPT close to capacity during the busy summer period, a key issue facing the cruise industry is where a second cruise terminal could be located east of the Sydney Harbour Bridge.
The Draft Report is available on IPART’s website. Submissions close on 30 August 2016, with a public hearing scheduled for 23 August. IPART will consider stakeholder submissions and updated market information in making final recommendations to the NSW Government in October.
Media Contact Julie Sheather 02 9290 8403 0409 514 643