13 june 2007 securing the lifeblood of the nsw economy presentation to the btre transport colloquium...
TRANSCRIPT
13 June 2007
Securing the lifeblood of the NSW economy
Presentation to the BTRE Transport Colloquium
Presentation by
Greg MartinChief ExecutiveSydney Ports Corporation
BTRE – June 2007
Introduction and Contents
• World Container Growth
• National Container Port Developments
• Securing Port Botany’s Growth
– Port Infrastructure Improvements
Port Botany Expansion
Enfield and Intermodal Terminal Network
Road and Rail Transport
– Operational Issues
Congestion
Hours of operation
VBS
– A Third Stevedore? and Future Plans
BTRE – June 2007
World Container Trade
• World container movements now exceed 400 M teu per year
• Australia’s share is around 5.5 M teu per year
• World volume projected to grow to 672 M teu by 2011
• Every trade lane in the world will exceed 7% per year growth to 2012 at least
• Port capacity is currently 550 M teu, hence at least 122 M teu additional capacity required by 2011
(Source – International Ports and Harbours Conference
- Houston May 2007)
BTRE – June 2007
National Container Port Developments
• Brisbane – $140M on channel deepening to 15m and new berths 11 & 12 at Fisherman Islands (Hutchison announced as new port operator)
• Sydney – $1 billion on Port Botany Expansion including terminal operator development cost
• Melbourne – $800M ? for channel deepening required for post-Panamax vessels
• Adelaide – $45M to deepen Outer Harbour channel by 2m to 14.2m for post- Panamax vessels
• Fremantle – Planning is well advanced for a new container port near Kwinana with suitable road & rail links
BTRE – June 2007
Population Growth in Sydney
BTRE – June 2007
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
70/71 72/73 74/75 76/77 78/79 80/81 82/83 84/85 86/87 88/89 90/91 92/93 94/95 96/97 98/99 00/01 02/03 04/05
Total Trade Ave 7.3% Growth
Long term containerised cargo growth 1970-2006
Sydney’s container trade growth projections
BTRE – June 2007
TEU Capacity
7,598
4,848
3,220
2,305
1,700
0 2000 4000 6000 8000
1st Generation (Pre 1960 - 1970)
2nd Generation (1970 - 1980)
3rd Generation (1985)
4th Generation (1986-2000)
5th Generation (2000 - ?)
Ship size trends
BTRE – June 2007
Approved Port Botany Expansion (60 ha – 5 berths)
Artist’s impression of the expanded port
• Request for tender March 2007
• Award major construction contract in late 2007
• Major works to commence in early 2008
• Stevedore procurement - 2007 and 2008
• Appoint terminal operator in 2008
• Complete works and commission first berths – 2011
Port Botany Expansion
BTRE – June 2007
Investment by Patrick terminal yard
2 new RMGs arrive at Port Botany
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DPW’s rail extension at Port Botany
Botany Yard
P&O
POTA
Patrick
CBFCA – March 2007
BTRE – June 2007
The Growing Road and Rail Task
TEU Rail Road
2006 1.5M 20% - 300K teu 80% - 1.2M teu
2020 3.0M 40% - 1.2M teu 60% - 1.8M teu
BTRE – June 2007
Rail Network
BTRE – June 2007
BTRE – June 2007
Enfield Intermodal Logistics Centre
• Intermodal rail / road interchange - 300,000 TEU capacity
• Warehousing for container pack / unpack
• Empty container holding areas
• Commercial / light industrial park
• Ecological / community area
• Operational 2009/10
BTRE – June 2007
Road congestion
Foreshore Road
A congested F3
BTRE – June 2007
Sydney’s Trucking Percentages
Trucks of total traffic 6% 1 truck / 17 vehicles
Port trucks of total trucks 5% - 8% 1 port truck /12-20
trucks
Port trucks of total traffic Approx
0.5%
1 port truck / 300 veh
Port trucks of total traffic -
near port (Foreshore Rd)
8% 1 port truck / 12 veh
Source: Warren Centre – Sustainable Transport in Sustainable Cities (and SPC)
BTRE – June 2007
BTRE – June 2007
Operational Issues
• Port Capacity
– Rapid trade growth
– Stevedores purported capacity
• Hours of Operation
– Mismatch of Hours
– Hours per day
– Day of the week
BTRE – June 2007
Source: NSW Sea Freight Council 2004
Mismatch of hours
CBFCA – March 2007
BTRE – June 2007
Port Botany Container TerminalsProportion of Truck Arrivals by Hour of Day 1999-2013
BTRE – June 2007
Proportion of truck arrivals by day of weekPort Botany container terminals
BTRE – June 2007
Stevedoring Issues
Improved VBS and IPART Inquiry
• SPC has long supported a VBS which is equitable,
efficient, transparent and recovers costs
• ACCC investigation into stevedores’ R&D procedures
prevented our attempt to bring both stevedores together
• SPC supports NSW Government’s IPART inquiry as it will
improve transparency and knowledge of system
• Submissions to IPART closed last week (8 June 2007)
BTRE – June 2007
Port Botany Logistics Taskforce
• Taskforce provides opportunity for the various arms of
Government to be coordinated under one process
• IPART Inquiry already underway
• Possible use of Super B doubles within the Port Botany
precinct under review
• Assists with the coordination of NSW Gov approach for
Auslink 2 funding.
BTRE – June 2007
Stevedoring Issues
Should we have a 3rd stevedore ?
• Government’s position is that it would prefer a 3rd stevedore but
hasn’t yet decided whether current stevedores are to be
excluded from process
• SPC proposes to seek EOI’s later this year
• A third stevedore will provide increased competition
• However, economies of scale will be reduced and existing
operators may slow down investment in new equipment
• New stevedore doesn’t have to be in all major container ports
• Brisbane’s decision to appoint Hutchison is a significant one.
BTRE – June 2007
• Complete Port Botany expansion
• Develop Enfield ILC subject to obtaining formal NSW Government planning approval and establish business model
• Pursue Federal and State Government agreement to develop Moorebank as an ILC
• Assist NSW Government to develop policy for improved road access to Port eg expand M5 and/or build M4 East
• Pursue Improvement of VBS
• Promote increased share of rail use (by carrot or stick) to 40%
• Increase industry hours of operation – 24/6 and ultimately 24/7
• Obtain an equitable share of Auslink 2 funding
Future Actions to Secure Lifeblood of NSW Economy
BTRE – June 2007
BTRE – June 2007BTRE - June 2007