DP World Australia has announced its intention to increase landside fees at its Terminals from 01 January 2024, just as the MUA has outlined a further series of work bans and stoppages next week – and, coincidently, a report by the Centre for International Corporate Tax Accountability and Research (Cictar) says that DP has paid zero in corporate income tax over the last eight years. The International Transport Workers Federation, of which the Maritime Union of Australia (MUA) is a member, is a financial contributor to Cictar.
INDUSTRIAL ACTION
Further to our post one month ago about action by the MUA, DP World announced on Monday that members of the Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) have outlined a further series of work bans and stoppages from Monday 06 November to Monday 13 November. [Source: Freight & Trade Alliance (FTA) Pty Ltd]
Impacted Locations and Actions
– Melbourne: There will be intermittent work stoppages of 2 hours, bans on overtime, shift extensions, and various other restrictions.
– Sydney: Stoppages of work of 1 hour and 24 hours on specific dates, along with bans on handling certain vessels, overtime, and other restrictions.
– Brisbane: 2-hour work stoppages, a 24-hour stoppage, bans on handling certain vessels, overtime, and more.
– Fremantle: 2-hour work stoppages and bans on handling ships for 8 hours, among other restrictions.
LANDSIDE FEE INCREASES
DP World Australia has issued 60-day Notices of Intention to increase landside fees at each of its Terminals in Australia from 01 January 2024. [Source: Container Transport Alliance Australia (CTAA)]
The following percentage increases have been announced by DP World:
– Terminal Access Charge (TAC): Full Exports – a whopping 52.52% increase in Melbourne; 38.80% increase in Sydney; 37.50% in Brisbane.
– Terminal Access Charge (TAC): Full Imports – 26.18% increase in Brisbane; 25.49% in Sydney; 21.22% in Melbourne.
In addition, notices have been issued stating that, following the introduction of a calibrated weighing device (PONDUS) in Melbourne earlier this year, PONDUS devices will be implemented in DPWA’s Sydney and Fremantle Terminals in the first half of 2024.
Vehicle Booking System (VBS) and ancillary charges are also increasing by various amounts.
PORT OPERATOR PAYS ZERO TAX
A report carried by The Guardian on 01 November 2023 reveals that DP World has paid no tax in Australia, despite generating revenue of more than $4.5bn over eight years, and holding over $2.4bn in assets.
The new report by the Centre for International Corporate Tax Accountability and Research (Cictar) says that DP World’s top Australian subsidiary may have “artificially reduced profits” to achieve the result.
DP World said that it fulfils its tax obligations by “paying in accordance with Australia’s tax regulations.”
The Cictar report analysed financial information in DP World’s annual report and Australian Taxation Office corporate taxation transparency data. The International Transport Workers Federation, of which the Maritime Union of Australia (MUA) is a member, is a financial contributor to Cictar. The MUA, as reported above, is locked in an industrial dispute with DP World over a proposed new pay deal.
As licensed Customs Brokers and International Freight Forwarders, Colless Young provides a complete range of shipping and allied transport services including connections by road and rail as well as warehousing. We professionally handle all your consignments by sea and air, both import and export, taking care of customs clearance, quarantine treatments and landed costings. With out head office in Brisbane, Colless Young offer logistics facilities through all major Australian ports and airports.
