Regional Ports Conference

2015

Cairns

Regulatory & Institutional Challenges Faced

by Port Operators

Agenda

• Understanding the Port Authority and Port Corporation

functions by Port Operators

• Breaking down the Regulatory functions and challenges

they impose

• Ever-changing Political landscape

• Economic forces and responses by Ports

• Way forward

• How will your port deal with Chain of Responsibility

provisions

• Security arrangements in the wake of Customs Act

1901 amendments and Australian Border Force

Port Authorities and Port Corporations – henceforth

referred to as Port Organisations • Commonly held Port Operator definition of Port Organisation’s role

• Facilitate trade through a port, while ensuring the safety and

interests of the wider community in which the port operates is

protected.

• Port Organisations’ common definition of their role

• The above, plus to generate revenue through port related

activities as an extension of their business; influence or control

port development

Gap in understanding of a Port’s role at heart of much discontent

and Port Orgs would be well placed in undertaking an exercise in

educating port operators of their role.

Port Organisations

Government Owned Corporations

Port Operators are mostly concerned with the

encroachment of GOC’s into their businesses

Port Operators are advised to be well aware of

a Port GOC’s constitution, which are publicly

available

When does ‘influence and control’ become anti-competitive, anti-

entrepreneurial and uneconomical?

Regulatory

Separation of Powers doctrine

Legislature, Executive and Judiciary

Which of the three arms of government poses the

greatest challenge to port operators?

Regulatory

Key legislation responsible for matters relating to vessel security, transport, the

environment, safety.

• Australian Maritime Safety Authority Act 1990 (Cth)

• 6 x Protection of the Sea Acts 2008

• Maritime Transport and Offshore Facilities Security Act 2003 (Cth)

• Customs Act 1901 (Cth)

• Navigation Act 2012 (Cth)

• Marine Safety (Domestic Commercial Vessel) National Law Act 2012 (Cth)

• Great Barrier Reef Marine Park Act 1975 (Cth)

• Heavy Vehicle National Law (HVNL) adopted through each state (yet to be

passed in WA & NT)

• Workplace Health and Safety Acts

This list is not exhaustive!

amendments

ambiguous requirements

Scope Creep

subjective tests

conflicting & overlapping legislation

interpretation

The Burden of Compliance

Regulatory

• Department of Heritage Protection (DEHP)

• Department of Transport & Main roads

• Australian Border Force

• Australian Maritime Safety Authority

• City Councils

• Australian Quarantine & Inspection Service (AQIS)

• Workcover

• Port Authorities

• Fire Services

• The list goes on….

“By setting the environmental outcomes that must be

achieve, EHP will leave it up to the holder of the EA

to develop tailor-made solutions….”

DEHP Publication – Exhibit ‘A’

DEHP Publication – Exhibit ‘B’

We issue environmental

licences to advise

businesses what level of

environmental performance

they need to achieve – not

tie them up in green tape.

This means business can

focus on innovation as part

of their environmental

performance.

EHP licences will have fewer

conditions that tell a company

how they have to run their

business. Our conditions are

standardized and businesses

can expect to have their

application for a licence

processed more efficiently.

Customs Act & MTOFSA

• Legislation developed through consultation with Major Ports

• Well funded

• Well planned

• Wide ranging commodities and products minimising market

sector fluctuations

• newsworthy

• Regional Ports

• Grown organically over decades – legacy of ad hoc planning

impacting on efficiencies

• Sensitive to fluctuations in commodities markets

• Less funding

‘One size fits all’ approach to vessel and cargo security does

not work

Political

• To lease or not to lease? That is the question…..

• Council versus Port roads

• Removal of port and city buffer zones

• Land released for residential areas impact on trade corridors

• Leadership changes – ministerial changes – policy changes…

Economic

Increases to port berthing & cargo

charges and port land rent increases

are way off the mark and out of touch

with industry. There is absolutely no

justification for increases in port

charges and rent in today’s economic

environment.

Chain of Responsibility

Under the HVNL, sits 5 COR provisions:

• Chapter 3 Vehicle operations – standards and safety

• Chapter 4 Vehicle operations – mass, dimension and

loading

• Chapter 5 Vehicle operations – speeding

• Chapter 6 Vehicle operations – driver fatigue

• Chapter 8 Accreditation

Chain of responsibility (COR) recognises the on-road

effects of actions, inactions and demands of off-road

parties in the transport and supply chain, and provides

for their accountability.

Way Forward

Greater collaboration between Port Organisations and

Port Operators

• Funding of facilities

• Lobbying of government

• Cutting red tape

• Better understanding of each others functions and

goals

Bipartisan political support of retaining transport

corridors