Governments are being urged to investigate what is needed to keep the nation's ports competitive and ensure they are being operated for the public benefit.
In a discussion paper, the Australian Industry Group says despite the nation's dependence on ports, Australia followed many other countries by privatising them to fund other infrastructure projects and reduce debt.
The group's chief executive Innes Willox believes privatisation has brought risks, such as the undervaluation of port assets, increasing port charges, competition issues and less port investment.
"These issues appear to be exacerbated by instances of industrial action," Mr Willox said.
"Similarly, the COVID-19 pandemic has created even more chaos, demonstrating a need to plan for disasters or unexpected global disruptions in all areas of the economy, including in our ports."
As an island nation, 98 per cent of Australia's trade goes through its ports and most Australian jobs rely on ports in some way through import/export trade.
"As nearly all our trade is through ports, these issues need close government attention and action where appropriate to ensure Australia and our supply chains are competitive, productive and resilient into the future," he said.
He noted the 2020/21 federal budget announced five different initiatives, involving 28 federal agencies at a cost of over $350 million to improve the trade system for importers and exports.
But Mr Willox said the impact of these overdue reforms could be lost if the ports were not similarly reformed.
"We run the risk of losing competitiveness if we fail to keep up with the world-class ports being established around the globe," he said.
The paper released on Tuesday notes Australia is under-investing in infrastructure and skills required for handling ultra-large container vessels, while foreign competitors are increasing their use of cheaper freight via such vessels.
Some port charges are also becoming uncompetitive, while some shipping companies are charging additional congestion fees.
At the same time, the high concentration of foreign ownership of Australian port assets has fuelled community concerns regarding national security and interest.
The paper also raises concerns over industrial relations disputes on the waterfront, which are typically very costly and disruptive and believes the CFMMEU has an excessive amount of power in enterprise bargaining negotiations.
The paper recommends governments conduct detailed investigations, involving port owners and other stakeholders on what port infrastructure will be needed to keep Australia globally competitive into the future.
It also recommends a "community service obligation" as an option for use by governments to ensure ports operate to public benefit.
Australian Associated Press
