13 june 2007 securing the lifeblood of the nsw economy presentation to the btre transport colloquium...

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

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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

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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

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Rail Network

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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

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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

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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

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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

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