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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
BTRE – June 2007
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
