The fees and charges applying to a Vessel’s visit at the Port of Newcastle (PON) are set out in the Schedule of Service Charges (unless varied in an agreement between the relevant parties). Any updates to the Schedule of Service Charges are notified to stakeholders and published on PON’s website as required by the Ports and Maritime Administration Act 1995 (NSW) (PAMA Act).
Port of Newcastle has reviewed its service charges. Port of Newcastle’s 2025 Schedule of Service Charges will apply from 1 January 2025.
PON’s framework for setting the pricing of the Channel Service adheres to the pricing principles set out in effective access regimes, including under Part IIIA of the Competition and Consumer Act 2010 (Cth).
Information on our port pricing framework can be downloaded via our Port Pricing Framework fact sheet.
Port operations
PON operates twenty-four hours a day, seven days a week, with twenty berths currently in use. The major commercial activities include:
- Trade and port development
- Management of 777Ha of port land and operations
- Wharf and berth services
- Maintenance of major port assets
- Vessel scheduling (Port Authority of NSW, a NSW government body, continue to operate pilotage services)
- Dredging and survey services (undertaken on a continual basis to provide safe, deepwater access to the port)
- Cruise shipping
PON does not provide Towage Tariff & Mooring, or Pilotage services.
Port open access arrangements & charges
PON is committed to ensuring transparent and open access to the land side and port side services and facilities provided by it at the Port. PON has accordingly established the following open access arrangements for users:
- Vessel Open Access Terms
- Stevedoring Open Access Terms for Common User Berths
- Property and Trade Short Term Licences
Statutory charges
PON retains the right to levy various service charges contractually, and in accordance with the PAMA Act and Ports and Maritime Administration Regulation 2021 (NSW). These charges include:
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Navigation Service Charge
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Charge payable in respect of the general use by a vessel of the Port and is imposed by reference to the gross tonnage of the vessel, on each entry of the vessel into the Port. The charge is payable by the “owner” of the vessel under s 48 of the PAMA Act.
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Wharfage Charge
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Charge payable in respect of the availability of a site at which stevedoring operations may be carried out. The charge is calculated by reference to the quantity of cargo loaded or unloaded at the site and is payable by the person who is the owner of the cargo immediately before it is loaded or unloaded.
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Site Occupation Charge
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Charge payable in respect of the occupation of all or part of a site:
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- for stevedoring purposes, or
- for the embarkation or disembarkation of passengers, or
- for the accommodation of a vessel for any purpose (including quarantine or customs purposes), or
- for any other purpose in connection with a vessel, its passengers or cargo.
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Non-statutory charges
By using the Port or its facilities, users agree to be bound by PON’s terms and conditions and Schedule of Service Charges.
These charges include the Ship Utility Charge and levies related to Kooragang 2 Bulk Cargo Unloading Infrastructure [and Mayfield 4 Mobile Harbour Cranes] on a cost-recovery basis. The Port Security Charge is levied to cover costs associated with the implementation of the Maritime Transport and Offshore Facilities Security Act 2003 (Cth), and the Security of Critical Infrastructure Act 2018 (Cth).
Non-PON charges
PON does not provide Towage Tariff & Mooring, or Pilotage services. The Pilotage Charge is administered by the Port Authority of New South Wales and charged to all piloted movements both in and out of PON (unless exempted from compulsory pilotage by s75 of the Marine Safety Act 1998)
Channel service
Context
The Channel Service relates to general use of the channel, breakwaters, berth boxes, and other services.
Historically, PON has undertaken an annual price review exercise considering factors such as:
- CPI;
- increases in operating costs;
- additional investments by PON in port services; or
- other material change events or changes in law.
PON’s pricing for Channel Service is based on established regulatory pricing principles, including that prices should:
- generate expected revenue that is at least sufficient to meet the efficient costs of providing the service; and
- include a return on investment commensurate with the regulatory and commercial risks involved.
Asset base
The methodology to determining the Asset Base required to provide the Channel Service has been subject to in-depth judicial review. The Australian Competition Tribunal determined an initial asset base related to the Channel Service using a Depreciated Optimised Replacement Cost (DORC) methodology as at 2018. The assets relating to the Channel Service include:
- Channel Assets
- Navigation Aids
- Reclaimed land
- Breakwaters
- Riverwalls and Revetments
- Revetments under Wharves
- Plant & Equipment (inc vessels)
Capital investment in assets outside of the defined asset base cannot be recovered through the channel service.
PON’s calculation of the Asset Base is consistent with this methodology.
Building block model
Revenue relating to the channel service is derived through a Building Block Model that incorporates the following factors:
Port charges relating to the channel service
Charges relating to the Channel Service include the Navigation Service Charge and Waterside Component of the Wharfage Charge:
These charges are published in the Schedule of Port Charges and apply to all Port Users.
PON’s historical pricing for the Channel Service has recovered revenue well below the Maximum Allowable Revenue, as confirmed by the final outcome in 2021 of the dispute between Port of Newcastle and Glencore under the National Access Regime. From 2027, PON intends that the pricing for the Channel Service will reflect the indicative Maximum Allowable Revenue derived from the approach endorsed as economically justifiable by the Australian Competition Tribunal on appeal by the High Court. Parameters for the Building Block Model will be reset on five-yearly increments from 2027, consistent with other regulatory-style pricing regimes.
True-up mechanism
PON proposes to apply an annual true up to account for the impact on revenue of difference between forecast vs actual volumes in the prior year.
Recovery of operating costs
PON is entitled to recover the efficient costs relating to the Channel Service. The types of costs relating to the Channel Service include:
- Labour costs;
- Professional and Advisory;
- Repairs and Maintenance;
- Payments under State Documents; and
- Other costs such as insurance, vessel fuel and corporate overheads.
Costs that do not relate to the Service are recovered through other means.
Engagement with port users on the channel service
PON will conduct annual engagement with Port Users ahead of the publication of the Schedule of Port Charges.
Landside services
The Port of Newcastle provides various landside services including leasing of space and facilities. These services also include charges relating to landside assets such as Wharfage and Site Occupation, and various infrastructure specific charges. Fees and charges for some landside services are published in the Schedule of Port Charges. Leasing of space and facilities are based on commercial agreements and are commercial-in-confidence.
Landside services include:
- Leasing of Space & Facilities
- Wharfage & Site Occupation
- Infrastructure specific charges
- Bulk terminal charge
- Mobile harbour cranes
Contacts
- Nick Livesey – Chief Finance & Commercial Officer
- Glen Hayward – Executive Manager Marine & Operations
- Kate McArthur – Executive Manager Business Development