One of the world’s biggest stevedoring companies has been hit with a massive rent increase which will make the Port of Melbourne the most expensive port in the world.
DP World managing director Paul Scurrah said the rent increase was around 750 per cent.
“I thought there was a decimal point missing when I saw the rent increase for the first time, and there needs to be common sense prevailing around any increase in rental,” he said.
“We have had rental increases before and there is provision in the contract to negotiate rental fees every two years, but an increase of this size will cause job losses and may see shipping companies avoid using the Port.
The rental increases at the Port of Melbourne have caused concerns to be raised by The Australian Logistics Council (ALC), the peak industry body for freight logistics industry.
Managing director Michael Kilgariff said ALC was generally supportive of the Port’s long term lease as a way of unlocking much needed funds for logistics infrastructure in Victoria, but that rental increases would undermine supply chain efficiency by affecting the ability of industry to make long-term commercial decisions about their operations at the port.
Article Source: : SC-Logistics