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Carnival Australia critical of proposed two-tiered pricing for berths in Sydney

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Sydney's port charges one of the most expensive ports in the world
A Carnival Australia spokesman said the company is studying a draft recommendation released by the Independent Pricing and Regulatory Tribunal (IPART) that proposes a per call charge at the Overseas Passenger Terminal for larger ships and a per head charge at White Bay.

The spokesman referred to this as ‘a complex two-tiered pricing mechanism for Sydney’s existing cruise terminals,’ noting that Sydney is already one of the most expensive ports in the world in terms of port charges.

He said Carnival Australia shares the concern that no provision appears to have been made for a new cruise terminal east of the Harbour Bridge and that a new facility might be needed as early as 2018 based on current cruise industry growth.

‘As an interim measure, Carnival Australia has long advocated shared use of Garden Island (naval base) by cruise ships to ensure Sydney can reach its full potential as Australia’s major cruising hub and gateway to visiting international ships,’ he said.

As reported here, in its submission to the New South Wales government’s investigation into Sydney’s port fees, Carnival Australia, which represents seven brands, said there is no precedence globally for a regulatory approach to set prices for access by cruise ship operators to port infrastructure.

It said the IPART should follow gobal practice and support a pricing model underpinned by direct negotiation and long term contracts between cruise ship operators and the Port Authority.

A final report will be prepared for NSW Maritime Minister Duncan Gay in September.