- Melbourne has seen a sharp drop in cruise ship traffic over recents years.
- This drop was spurred on by an increase in port fees.
- However, the port and Victorian government are now trying to change things…
The last few years have seen Station Pier in Melbourne transform from a thriving cruise hub to a port that rarely sees large ships homeporting and trails ports like Brisbane in ship activity.
The perceived wisdom is that Melbourne’s port fees are simply too expensive. But this isn’t the whole story.
Melbourne’s port fees are definitely steep, clocking in at $32.78 per passenger. However, Sydney, which continues as a thriving port, charges $46.60 per passenger. This means that for a ship with 3000 passengers, it costs $40,000 extra to port a ship in Sydney than Melbourne. Yet Sydney has largely avoided the problems that Melbourne is facing.
The truth is that, in the right circumstances, cruise lines can deal with steep port fees, they can be absorbed into the cruise price and many cruisers won’t even notice. However, what cruise lines absolutely can’t stand is regulatory uncertainty.
When Melbourne raised its port fees, it wasn’t just about the rise in price, but just as much about the fact that the fees came into almost immediate effect and the cruise lines weren’t warned ahead of time. Cruise lines book ports up to three or even four years in advance, and budget their costs and price their cruises according to the current conditions, meaning that sudden changes in costs can mean big losses for the lines.
Cruise Passenger questioned Ports Victoria, asking if the port would consider freezing port fees to offer more certainty to lines. Craig Walker, CEO of Ports Victoria said: “ In line with standard business practice, it will continue to review operational costs and adjust related fees accordingly.”
However, Walker did offer some hope for the hundreds of cruise passengers who write to us weekly begging cruise lines to homeport in Victoria.
Steps are being made to facilitate more cruise. “Ports Victoria is partnering with Victorian Government in developing a strategic plan to ensure Victoria’s cruise shipping industry thrives.
“This year, we invested in upgrading facilities at Station Pier, and we have a program of innovation and infrastructure upgrades planned to support the cruise industry. We work with our cruise industry partners on an ongoing basis to identify new opportunities and ways of working to ensure cruising thrives in Victoria.”
It’s going to be an uphill battle without change.
A keen Princess cruiser from Melbourne emailed Princess Cruises to question them on returning cruise ships to Melbourne, and an email showed to Cruise Passenger showed a Princess representative saying: “I must mention that the high taxes and fees associated with departures from Melbourne have led us to temporarily pull out of basing a ship in that port.”
It appears that the only way for Melbourne to win back over the cruise industry would be direct industry communication that offers regulatory certainty over a set period. The real issue isn’t in the costs, but that the industry has lost trust in Melbourne and has worries over scheduling more cruises just to see port fees jump again, or other regulatory changes.
This is certainly indicative of Australia’s current issues with cruise at large, that while demand certainly exists, there’s clearly a communication gap between the government and cruise lines that needs to be bridged in order for us to see more ships on our shores.
However, the news that the Victorian Government is working with the ports on a new strategic plan means, at least, that the government now understands what it has lost.
See more here.
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Great tip Maggie.
We are boarding our Syd to Syd 12 day Discovery Princess southern cruise on her 1st stop in Melbourne forgoing the 2 nights sailing down from Syd.Have had confirmation we can do so which will save us the hassle of travelling/accom in Syd beforehand.Been cruising for 25 yrs.
Just think about all the money Melbourne is losing in Tourism.
We recently took our 10 grandkids on a cruise the cost to just fly us to and from Brisbane was over $8000..an expense that we could have lived without..plus hotel fees this government is a joke. ..get tourism in Melbourne back on its feet…
Yet another example of how incompetent and hostile to business this Andrews/Allan government is.
Watching the ships come in quite often, l’ve wondered why doesn’t tourism Victoria refurbish its most used location? With at least coats of paint every so often, thus setting a standard.
Please lobby the Victorian government to provide certainty as soon as possible. We have loved boarding our cruise in Melbourne and we don’t want to have to go to Sydney just to board !!
Melbourne needs this industry to thrive for the good of the city. state , the cruise lovers, and the cruise lines.
Thank you in anticipation of swift and certain action.
Please lobby the Victorian government to provide certainty as soon as possible. We have lived boarding our cruise in Melbourne and we don’t want to have to go to Sydney just to board !!
Melbourne needs this industry to thrive for the good of the city. state , the cruise lovers, and the cruise lines.
Thank you in anticipation of swift and certain action.
Having completed 5 cruises with various cruise lines I must register my disappointment re the lack of cruises starting at Melbourne and choose Sydney .
The extra cost of flights, car/bus/train,travel,parking,hotel adds a new dimension to daily cruise costs.
The other issue that people who love to travel on cruises are also impacted if they are in the upper age range or have a disability as they can enjoy the holiday vibe without leaving the ship.
I urge the Vic. Government officials to attend to this matter as it certainly discourages my husband and I whom are both over 80 and very healthy & fit.
Thanking You
Pauline
We have taken many cruises over the years, many from Melbourne. The cruise facilities in Melbourne are amongst the worst in the Western world. The terminal has been updated but has changed little in essentials since we arrived as migrants in the 1950s. We have experienced much better facilities in Ho Chi Min, Singapore, Dubai, Brisbane etc. Melbourne has fallen behind in its Cruise terminal and airport and does not provide an attractive and welcoming gateway to our city. Change is needed now.
Station pier is an embarrassment. Outdated and run down but so convenient for Melbourne travellers. Would happily pay a surcharge to depart from there than the cost and hassle of flying interstate.
Melbourne also lost the Tasmanian Ferry to Geelong recently, I wonder what ‘spin’ the authorities will put on that?
I love cruising from Melbourne but it cost another $500 + to get my 96 yr old mum to Sydney to connect to a cruise.lm not doing that after many times.You need to fix the problem at Station peir so people will come you won’t regret it.Please get the ships back your losing alot of $$$ the people will return
Princess was pissed off because jacinta Allen gave virgin and disney free docking
The terminal at St Kilda is just not up to scratch. The new Brisbane port terminal is so far ahead.
I doubt the government can guarantee that port fees will not be suddenly increased with inadequate notification to cruise lines
Station Pier is a 95 year old third world facility. Even in 1950 the MHT (Melbourne Harbour Trust) knew it and were going to replace it; sadly that never happened. Melbourne is also the only major port in Australia that has never had a visit by a Quantum class ship that carries 5,000 passengers, because the main shipping channel is too narrow for safe passage on a windy day. I lived in Port Melbourne for about 50 years closely following shipping and have been on 5 world cruises, so I know what I am talking about.
How true we have done a few cruises a couple of years ago from Melbourne we did a cruise from Sydney earlier this year but the added of cost of getting there and back is around another $800.00 if you fly we have made the decision not to do any more cruises but will still do air and drive holidays in future