11 th June 2014
Dear Customer,
I am writing regarding changes to Statutory Charges in the ports of Botany and
Sydney from 1 July 2014.
Sydney Ports Corporation (Sydney Ports), as a State Owned Corporation, is required to provide certain services to Port Users, and to do so in a financially sustainable way.
As a result of a major review of its charges, Sydney Ports has determined that there is a need to address charges that are not adequate to support operating costs and ongoing investment in infrastructure and equipment.
For Sydney Ports’ charges to have kept pace with general CPI increases annually over the period of 1999 to 2013 the prices would have cumulatively increased by
49% over that period.
In reality:

Navigation Service Charges have only increased 17%;

Pilotage Charges have seen a net increase of 4.8%; and

Site Occupation Charges have only increased 2.5%
As a result of the review, Sydney Ports has determined that an increase in Statutory
Charges of 9.64% is required (for Navigation Services, Pilotage and Site Occupation for Non-Passenger Vessels) from 1 July 2014 for all commercial ships and related cargo arriving in the port.
While Sydney Ports’ Navigation and Pilotage apply to all shipping, Sydney Ports’ Site
Occupation charges only apply to wharves and facilities owned and operated by
Sydney Ports Corporation.
The 9.64% in based on a 7% increase to contribute to partially bridging the gap on historical rate erosion, and 2.64% for current CPI.
I will be happy to meet with you or your representative should you require clarification or further explanation of the proposed increase.

Sydney Ports will also ensure that the proposed pricing, through the Schedule of
Port Charges, is on the website at least 10 business days before it comes to effect.
This is in accordance with Part 6 of the Ports and Maritime Administration Act 1995
(PAMA), which authorises Sydney Ports Corporation to apply statutory port charges under a price monitoring regime.
Should you require any further background information please contact Mike
Baudinette, General Manager, Property and Commercial, Sydney Ports Corporation on (02) 9296 4841.
Yours sincerely
Grant Gilfillan
Chief Executive Officer