Export shipping service to North-West to continue

30/9/93

The State Government has decided to maintain an export shipping service to the North-West.

Transport Minister Eric Charlton said the Government would continue shipping services to the North-West for at least three years, and at the same time, invite proposals from the private sector for taking over part or all of Stateships' operations.

As well, Stateships' management would embark on a program of cost reductions aimed at saving at least $4.4 million annually.

Savings would be achieved through changes to vessel crewing arrangements, using ships' crews for stevedoring at Broome and Wyndham and contracting out maintenance and repair services.

Mr Charlton said there was also a need to increase freight rates to reduce the cost to the Government of retaining Stateships.

"The Government has taken this decision to eliminate uncertainty over the future of shipping services into North-West ports," Mr Charlton said.

"The restructuring of Stateships will include the separation of the roles of chairman and general manager and the possible outsourcing of ship repair and maintenance."

Mr Charlton said the Government's actions followed the Price Waterhouse Urwick review into Stateships' role and operations, which he commissioned in May, this year.

The review found evidence of direct benefits to users of Stateships services, including:

·       a high level of user satisfaction with current Stateships' services;

·       reductions in road maintenance costs; and - 

·       reduced road transport rates to the North-West.

Mr Charlton said the review suggested other indirect benefits by retaining a shipping service.  These included increased economic development in the North-West, increased trade development with South East Asia and increased employment in the State.

"The consultants' report also talks about other adverse impacts through a loss in shipping services to the north," he said.

"Among them, a loss of WA exports to Darwin and South East Asia, difficulty in developing new markets in Asia and loss of revenue for North-West ports.

"It is clear from the consultants' evaluation that Stateships or a private sector equivalent has a useful role to play in the economic development of the North-West in particular, and the State generally in its push for greater exports into South East Asia."

Media contact:  Dean Roberts 321 7333