Australian Waterfront Productivity Catching Up

Australia’s ports have largely bridged the productivity gap with their overseas counterparts, according to a new Productivity Commission study.

The report — International Benchmarking of Container Stevedoring — reviews the performance of Australian and overseas container terminals between 1997 and 2002.

In a previous study, the Productivity Commission found that Australia’s waterfront productivity in 1997 lagged significantly behind its trading partners. It also found that container handling charges in Australia were higher.

Productivity Commission Chairman Gary Banks, commenting on the latest study said: ‘Following work practice and other reforms, we are now seeing productivity performance at Australian ports that is comparable with our overseas competitors. There has also been some reduction in relative charges at container terminals over the past six years’.

The Commission noted that new technology, reduced over-manning and other workplace reforms, had all contributed to improving the relative performance of Australia’s container terminals. It emphasised that the improvements had occurred despite the inherent disadvantage of relatively small trade volumes and throughput at Australian terminals. By the same token, the Commission found that the Tauranga terminal in New Zealand had been able to deliver even higher productivity and lower charges than its Australian counterparts, notwithstanding similar scale disadvantages.

Mr Banks said: ‘While there have been marked improvements, the New Zealand experience suggests that there may be scope for further gains at Australian ports’.