Cruise chiefs in port charge talks

Cruise chiefs in port charge talks
By admin


The heads of Australia's largest cruise companies will deliver a report to the New South Wales government in the new year as they look to stave off a hike in berthing charges at Sydney Harbour.

Carnival Australia chief executive Ann Sherry and Royal Caribbean Australia managing director Gavin Smith met with the NSW premier, Barry O'Farrell and minister for roads and ports, Duncan Gay, to outline their fears over the $18 per passenger charge that comes into effect on July 1.

Sherry said she urged ministers to look at cost cutting at the port, rather than imposing a cost to cruise lines.

"They asked us to come up with a better proposition," she told Travel Today.

Sherry said will return with a financial plan "first thing in the new year" to address the issue.

The introduction of a new pricing system will see a per passenger charge replace the hourly rate.

The fee will rise to $18 from July 1, before increasing to $25 per passenger in 2014 and $30 in 2015.

Sherry and Smith stressed to O'Farrell and Gay that destinations that have hiked charges in the past – most notably Alaska – have suffered.

"Other places where charges have gone up have seen a dramatic decline in the number of ships coming in," Sherry said.

With fuel in Sydney "twice as expensive" as many other ports, and with the significant hike in port charges "the economies of cruising come into question", she explained.

Sydney also needs to understand that ports such as Singapore and Shanghai have lower costs and are actively campaigning to attract cruise ships.

"Sydney is a lovely harbour but being pretty isn't enough. It can't afford to be complacent," she said.

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