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Media Release: 3rd February 2017

Container transport operators have united in agreeing that CityLink toll increases to come into effect on 1 April will be passed along the supply chain, impacting the cost of goods to Victorian consumers.

CTAA Alliance companies have agreed that the increase in tolls, plus any associated administrative costs, will be passed along the container supply chain, through an identified and separate ‘toll surcharge’ on invoices to their customers.

From April onwards, container transporters delivering Victoria’s vital import and export freight face up to a 225% increase on toll fees when travelling between the Port of Melbourne and Dandenong. Other increases impact on freight moving to and from the north on the Tullamarine Freeway.

Since the inception of motorway tolls in Melbourne, the overwhelming majority of container transport companies have absorbed tolls. With this significant increase, the industry can no longer commercially sustain this approach.

Neil Chambers, Director, Container Transport Alliance Australia, said “The significant increase in truck tolls discriminates against the freight transport industry and will have negative flow on effects to the costs of commercial transport and the economy. Ultimately, it will be the Victorian consumers who pay for what amounts to a ‘tax on freight’.”

He said “a truck leaving the Port of Melbourne on a return day trip to Dandenong will face tolls of close to $60. With a significant portion of Victoria’s 2 million containers either going to and from the South Eastern suburbs, this amounts to a massive impost on the container supply chain. One that cannot be absorbed by the industry.”

From 1st April 2017, container transport operators using CityLink, Tullamarine Freeway and the Monash Freeway to and from the Port of Melbourne will face significant increases in tolls due to the Citylink, Tulla Widening (CTW) Project.

The CTW Project is jointly funded by the Federal Government, the Victorian Government and Transurban (CityLink). However, in an agreement reached between the Victorian Government and Transurban to proceed with the investment, a significant increase in truck tolls was imposed to commence from April 2017, but not for cars.

The post April arrangement will see Heavy Commercial Vehicles (HCVs) pay 3 times the car toll during the day and 2 times the car toll in the evening.

Mr. Chambers said, “With the curfews and restrictions on traditional freight routes to and from the Port, container transport operators have no alternative but to use tolled motorways.

Heavy vehicle operators are highly skeptical that the CTW project will provide any benefit to them, yet they are being told to pay for it. Without additional lanes on the Monash to and from Dandenong, will travel times improve enough to offset the massive toll increases?”

For further information regarding this media release, please contact CTAA Directors, Gerard Langes 0439 888 905 or Neil Chambers 0413 662 263 or email neil.chambers@ctaction.com.au

Victoria’s importers, exporters and freight forwarders can expect to be receiving notices of the introduction of a toll surcharge from their Melbourne container transport operators over the coming weeks.

The table below gives an indicative summary of the charges based on the applicable tolls as at the date of this letter.

Trip

Current cost

6am – 8pm

Current cost

8pm – 6am

Indicative new cost

from 1 April 2017*

6am – 8pm

Indicative new cost from 1

April 2017*

8pm – 6am

Port of Melbourne – Moreland Rd (and beyond)

$9.00

$8.90 $14.20

$9.52

Port of Melbourne – Westgate Fwy and Kingsway

$5.64 $5.64 $8.91

$5.94

Port of Melbourne – Burnley St (and beyond)

$11.85

(capped)

$8.90

(capped)

$26.70

$17.80

Trip cap

$11.85

$8.90 $26.70

$17.80

*Actual costs at 1 April 2017 will vary to reflect quarterly toll adjustments

In addition, tolls on Eastlink are shown below.

Trip

Current cost *

 

Monash – Greens Rd $4.83
Monash – Thompsons Rd $8.57
Monash – Frankston Fwy/Pen Link $12.31
Monash – Ferntree Gully Rd $3.22
Monash – Burwood Hwy $5.90

*tolls change annually with CPI on 1 July

For further information regarding this media release, please contact CTAA Directors, Gerard Langes 0439 888 905 or Neil Chambers 0413 662 263 or email neil.chambers@ctaction.com.au