Freeport stevedores in action over tariffs

Stevedores at the Freeport will not be processing any containers addressed to local importers until "matters are cleared up" with regard to the new tariff regime introduced by the Malta Maritime Authority on Friday.

The Chamber for Small and Medium Enterprises - GRTU issued a statement yesterday afternoon saying that until matters are cleared up with regard to the new tariffs, the stevedores will not be processing any containers. Grand Harbour is not affected by the action.

The matter may not be settled until tomorrow when the shipping agents - a key third party to this dispute - meet the Malta Maritime Authority to clarify the new tariffs system. On Saturday, GRTU director general Vince Farrugia heavily criticised the port reform, saying the new tariffs charged to importers, introduced by the MMA, could cause the cost of cargo handling to shoot up, for instance from Lm131 to Lm185 (Lm54 or by about 40 per cent) on 20-foot containers, when the cost of the shipping agents was considered.

The authority's chairman Marc Bonello rebutted the claim, saying that the role of the shipping agents would change and that they would no longer be involved with cargo handling, so they would not be charging importers for it.

"The shipping agents would only be dealing with their business, the shipment of freight, but not cargo handling, despite what GRTU may insist on assuming," he said.

But matters are not that clear to the shipping agents themselves. Karl Gollcher, a shipping agent on the Shipping Agents' Association committee, said that the new regime raises a lot of questions, which so far have remained unanswered.

"The new tariff regime was announced on Friday and had to come into effect the day after... now you would have to be superman to change your software and pricing structures to accommodate a change like that overnight," he said.

Besides, he continued, there were a number of issues which needed to be cleared up, especially with regard to the legal responsibility of the shipping agents under the new regime. "All this hassle would have been avoided had these matters been discussed beforehand," he said.

The issue does not seem to be so much to do with price increases. Ernest Sullivan, the president of the association, for instance, concurred with the statement given to The Times by the MMA chairman with regard to the changing role of the shipping agents, saying that as consequence they will not be charging the same rates as they used to previously.

This means, according to Dr Bonello, that the new tariffs would represent an estimated decrease of some five per cent rather than a radical increase.

Nonetheless, when asked to comment on the situation in the morning, Mr Farrugia complained that the whole matter had been badly managed. "That is exactly what I said in Saturday's press conference isn't it? Namely that unless we all sing from the same hymn book... understand the situation in the same way, there will be confusion. All this could have been avoided..."

But the GRTU has also complained with the authorities about the fact that the Freeport wants to shift its paperwork offices from Marsa to the headquarters in Birzebbuga.

Besides raising the fuel costs of the stevedores, this move does not make any logistical sense, Mr Farrugia had argued. "We have filed a complaint with the Office of Fair Trade because we feel that as a monopoly the Freeport cannot act this way."

Dr Bonello was unavailable for comment yesterday.