Stevedore DP World hit with 800 per cent rent increase at Port of Melbourne
Stevedores at the nation’s busiest container terminal face massive rent increases of up to 800 per cent as the Victorian government readies the Port of Melbourne for sale.
Fairfax Media has confirmed that the Victorian government has notified DP World Australia, one of two stevedores at the port, that it wants to massively increase rent at the terminal, prompting warnings of job losses and economic damage to the state.
It is understood that DP World has previously paid about $16 per square metre and the increase will take it to $120 per square metre.
The port takes in about $40 million a year in rent from DP World and Asciano, which owns Patrick ports. Asciano’s rent is due to be reviewed next year.
If the government were to achieve the increases, then the port could be in for a windfall boost to its revenue worth about $320 million a year. The port’s total revenue last financial year was $368 million.
The revenue on offer will be a key driver of the price the government achieves in the privatisation process under way.
Consortiums are forming to bid for the Port of Melbourne, which is expected to fetch as much as $5 billion when it is sold this year.
DP World has reacted strongly to the proposal, telling Fairfax Media it would challenge the rent move in court. Source: Sydney Morning Herald
GAIL India, the nation’s largest natural gas distributor, has dropped plans to set up a Rs 3,108 crore floating LNG import terminal at Paradip in Odisha. GAIL was looking for a strategic partner for the 4 million tons a year floating liquefied natural gas (LNG) terminal off the Paradip coast.
Only a handful of roads remained blocked in Brazil as truck drivers focused their grievances on Brasilia and a key highway in top soy state Mato Grosso opened after two weeks of protests.
There were seven protests over rising freight costs affecting federal highways, down from 18 on Monday and well below peaks of more than 100 a week ago, police said. May soybean future prices fell 0.76 percent as a result.
By mid-afternoon 500 trucks had arrive at Brazil’s No. 2 soy exporting port of Paranagua where recent roadblocks depleted soy stocks. That was enough to guarantee exports at least through Thursday rather than Wednesday, a spokesman said.
In addition to leaving supermarkets with empty shelves and slowing soybean harvesting, the strike has cost Brazil’s poultry and pork industries $241 million, industry association ABPA said. Some slaughter plants remained closed due to roadblocks, it added.
Access to the country’s main poultry exporting port of Itajai in Santa Catarina state has also been blocked since Friday, according to Fabio Rosa, a manager at a private warehouse near the port.
Warehouses like his are full, holding some 300 refrigerated containers, he said. Source: Reuters