Notice of Designation of Port Operator - Port of Newcastle Operations Pty Ltd

Overview

The Maritime Transport and Offshore Facilities Security Act 2003 was enacted by the Parliament of Australia to address the need for enhanced security measures at designated ports and offshore facilities to protect against acts of marine piracy and other security threats. This Act was introduced to fill a critical gap in the regulation of port security by providing a legislative framework that ensures compliance with international standards and obligations. The policy objective of the Act is to safeguard Australia's maritime interests and to contribute to global maritime security by implementing rigorous security protocols at designated ports. The Act empowers the relevant authorities to designate and oversee port operators, ensuring they adhere to the security standards outlined in the legislation. This is demonstrated by the revocation and designation of port operators, as seen in the notice published in the Gazette on 15 May 2014, which reassigned the port operator role from Newcastle Port Corporation to Port of Newcastle Operations Pty Limited for the Port of Newcastle.

Scope and Application

The Maritime Transport and Offshore Facilities Security Act 2003 applies to designated port operators within the Commonwealth of Australia, regulating security measures at designated ports to protect maritime transport and offshore facilities. This Act applies to the Port of Newcastle, transitioning the port operator designation from Newcastle Port Corporation to Port of Newcastle Operations Pty Ltd, effective from the date of the notice in the Commonwealth of Australia Gazette. The geographic reach of the Act is national, applying to all security-regulated ports across Australia. The Act does not specify exclusions or exemptions in this notice but generally, certain ports may be exempted based on criteria outlined in the Act. The application of the Act can be extended or restricted through subordinate instruments, allowing for specific regulations and standards to be set for different ports as required. This revocation and designation are governed under subsection 14(1) of the Act and remain in effect until formally revoked in writing and published in the Gazette.

Key Provisions

The Maritime Transport and Offshore Facilities Security Act 2003, in subsection 14(1), provides the legal basis for the designation and revocation of port operators for security-regulated ports. Under this provision, a delegate of the Secretary of the Department of Infrastructure and Regional Development can designate or revoke the designation of a port operator for a specific port. In the present notice, the designation of the Newcastle Port Corporation as the port operator for the Port of Newcastle has been revoked (subsection 14(1)(a)), and Port of Newcastle Operations Pty Limited has been designated as the new port operator (subsection 14(1)(b)). This designation takes effect from the date of publication in the Gazette, as indicated in the notice issued by Adam Rosalky, Acting Regional Director, Transport Security Operations, Office of Transport Security, on 15 May 2014. The obligations and requirements imposed by the Act on the parties involved are primarily centred around ensuring the security of maritime transport and offshore facilities. The designated port operator, Port of Newcastle Operations Pty Limited, will now be responsible for implementing and maintaining security measures at the Port of Newcastle, in line with the Act's provisions and any relevant security plans. This includes the development and implementation of a port security plan, the coordination of security-related activities with relevant authorities, and the maintenance of a security-aware culture among port staff and contractors. The port operator must also ensure compliance with any applicable Australian and international security standards and guidelines. Failure to comply with the Act's requirements can result in both civil and criminal consequences. Under the Act, a person who contravenes a provision of the Act may be liable for a civil penalty. The maximum penalty for a corporation is 10,000 penalty units ($1.89 million as of May 2023) for a single offence, or 5,000 penalty units ($945,000) for a continuing failure to comply. For an individual officer or employee of a corporation, the maximum penalty is 2,000 penalty units ($378,000) for a single offence, or 1,000 penalty units ($189,000) for a continuing failure to comply. Additionally, a person who engages in conduct that constitutes a criminal offence under the Act may face criminal penalties, including imprisonment and/or fines. The maximum penalty for an individual is generally imprisonment for five years, a fine of 6,000 penalty units ($1.13 million), or both, while the maximum penalty for a corporation is generally a fine of 30,000 penalty units ($5.66 million).