MAJOR PROJECT ASSESSMENT: Vopak Stage B3 Facility

MAJOR PROJECT ASSESSMENT: Vopak Stage B3 Facility Expansion, Port Botany

Director-General’s Environmental Assessment Report Section 75I of the Environmental Planning and Assessment Act 1979

February 2007

©NSW Government February 2007

© Crown copyright 2007 Published February 2007 NSW Department of Planning www.planning.nsw.gov.au Disclaimer: While every reasonable effort has been made to ensure that this document is correct at the time of publication, the State of New South Wales, its agents and employees, disclaim any and all liability to any person in respect of anything or the consequences of anything done or omitted to be done in reliance upon the whole or any part of this document.

Vopak Site B3 Facility Expansion, Port Botany Director-General’s Environmental Assessment Report

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1. EXECUTIVE SUMMARY Vopak Sydney Terminals Pty Ltd (Vopak) has operated the Site B bulk liquids storage facility at Port Botany in the Randwick LGA since 1995. This facility is now one of the largest bulk liquid storage facilities for jet fuel, gasoline and diesel in the Sydney Metropolitan Region, with a capacity of 185,000m³. The facility has been developed in two stages – stage B1 and stage B2. To meet growing demand, Vopak proposes to further expand the facility. The proposal involves installing 9 additional storage tanks with a capacity of 158,000m³, and constructing a range of associated infrastructure including three new pipelines. This expansion would be known as stage B3 of the facility. The proposal has a capital investment value of $80 million, and would employ up to 100 workers during construction and 5 workers during operation. During the exhibition period, the Department received 5 submissions on the proposal – 3 from government agencies (Department of Environment and Conservation, NSW Fire Brigade, and Randwick City Council), 1 from the Nature Conservation Council (NCC), and 1 from a member of the general public. None of the public agencies objected to the proposal, but provided recommended conditions of approval. However, both the NCC and the submission from the member of the general public objected to the proposal on the basis of traffic, visual and water quality impacts and strategic justification for the project. The Department has assessed these concerns in detail (see section 6 of this report), and is satisfied that the proposal can comply with all the relevant environmental criteria, and that the site is suitable for the proposed development. The Department also considers that the project is generally in the public interest as it would help fuel suppliers to meet fuel demand in the NSW market, and facilitate the orderly development of Port Botany. Consequently, it recommends that the project application be approved subject to conditions.


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2. BACKGROUND Vopak Sydney Terminals (Vopak) has operated the Site B bulk liquids storage facility at Port Botany in the Randwick LGA since 1995 (refer to Figure 1). This facility currently has a capacity of 185,000m³ and stores jet fuel, gasoline and diesel. Vopak also operates a bulk storage terminal further north on Friendship Road which is known as Site A.

Figure 1: Site Location

The Site B facility has been developed in two stages – stage B1 and Stage B2 (refer to Figure 2). Stage B1 was approved by the Minister in 1995 and includes 12 bulk liquids storage tanks with a total capacity of 126,800m³. Stage B2 was approved by the Minister in 1998 and includes five additional storage tanks which are currently under construction (increasing the total capacity of the site to 185,000m³). Demand for fuel in NSW is forecast to outstrip supply over the next two decades, and demand for Vopak’s product is outstripping its current storage capacity at the Site B facility. Consequently, Vopak proposes to expand its existing operations within the southern portion of Site B. This expansion, which is known as Stage B3, would be located on a portion of the site that is currently used to store containers (see Figure 2). The storage of these containers would cease if the Vopak project is approved.


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Figure 2: Vopak Site B

3. PROPOSED DEVELOPMENT

The major built components of the proposal are detailed in Table 1, and shown in Figures 3 & 4. Table 1: Major Components of the Proposal Component Description Site Preparation Works

Removal of ground vegetation, levelling of site, pouring of hardstand areas, site compaction, installation of impervious bunding for storage tanks, and closure of southern emergency access road.

Storage Tanks Construction of nine additional storage tanks with capacities ranging from 5,000m³ to 25,000m³ and with a total capacity of 158,000m³. The tanks would be 24m in height (refer to Figure 3).

Pipelines and Transfer Manifolds

Construction of 3 additional pipelines at the site (8 already approved) and associated manifolds. Two of these pipelines would run from the site via the dedicated pipeline corridor to a connection with the Sydney Metropolitan Pipeline system at Caltex’s premises at Banksmeadow. The third pipeline would connect the site to Vopak’s Site A further north along Friendship Rd (refer to Figure 4).

Staff amenities Construction of two additional amenities buildings and extension of existing switchroom.

Tanker Loading Arm Construction of one additional road tanker loading arm (adjacent to the existing 5 arms).

Fire Protection Systems

Installation of additional fire pumphouse facilities to provide fire protection to the entire site.

Wastewater Treatment Plant

Installation of a wastewater treatment plant (identical to existing plant) to treat runoff to DEC standards prior to discharge to Botany Bay.


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Figure 3: Site Layout (Proposed expansion highlighted in green)

Figure 4: Proposed pipeline routes


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Petroleum products including jet fuel, gasoline and mineral diesel would be delivered to the site for storage in the storage tanks prior to distribution to market. No processing or manufacturing of bulk liquids would occur. Petroleum products would be delivered to the site by road tanker (5%), pipeline (15%) and ship (80%). Petroleum products would be transported from the site by road tanker (35%), pipeline (55%) and ship (10%). The proposed expansion would almost double the storage capacity at the site, and increase annual throughput from 2,100ML to 3,950ML. The proposal has a capital investment value of $80 million, and would employ up to 100 workers during construction and 5 workers during operations. Vopak submitted an environmental assessment of the proposal to the Department on 23 October 2006 (see Appendix D).

4. STATUTORY CONTEXT

4.1 Major Project

The proposal is classified as a Major Project under Part 3A of the Environmental Planning and Assessment Act 1979 (the EP&A Act) as it complies with the criteria in Clause 10(2) of Schedule 1 of State Environmental Planning Policy (Major Projects) 2005, being development for the purpose of a bulk liquid storage facility with a capital investment value of more than $20 million. Consequently, the Minister is the approval authority for the project. 4.2 Permissibility

Under Section 75J(3) of the Environmental Planning and Assessment Act 1979, the Minister cannot approve the carrying out of a project that would be wholly prohibited under an environmental planning instrument. The site is zoned 4B Port Botany under the Randwick Local Environmental Plan 1998, and the proposal is permissible with development consent as a ‘potentially hazardous industry’ in this zone. The Minister may therefore approve the carrying out of the project. 4.3 Exhibition

Under Section 75H(3) of the EP&A Act, the Director-General is required to make the environmental assessment of a project publicly available for at least 30 days. After accepting the environmental assessment for the project, the Department: • made it publicly available from 31 October 2006 until 1 December 2006:

o on the Department’s website, and o at the Department’s Information Centre and Randwick City Council; o notified landowners in the vicinity of the site about the exhibition period by letter;

• notified relevant State government authorities and Randwick City Council by letter; and • advertised the exhibition in the Southern Courier. This satisfies the requirements in Section 75H(3) of the EP&A Act. 4.4 Environmental Planning Instruments

Under Section 75I(2) of the EP&A Act, the Director-General’s report on this project is required to include a copy of or reference to the provisions of any State Environmental Planning Policy (SEPP) that substantially governs the carrying out of the project. The Department has assessed the proposal against the relevant provisions of several SEPPs, including SEPPs 11, 33 and 55 and is satisfied that only SEPP 33 substantially governs the carrying out of this project. The Department’s assessment of the proposal against State Environmental Planning Policy No 33 – Hazardous and Offensive Development is provided in Appendix E. This assessment concludes that the proposal is consistent with the aims, objectives and requirements of this instrument.


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4.5 Statement of Compliance

Under Section 75I of the EP&A Act, the Director-General’s report is required to include a statement relating to compliance with the environmental assessment requirements with respect to the project. The Department is satisfied that the environmental assessment requirements have been complied with.

5. ISSUES RAISED DURING CONSULTATION During the exhibition period, the Department received 5 submissions on the proposal (see Appendix C), including: • 3 submissions from public authorities (Department of Environment and Conservation, Randwick

City Council and the NSW Fire Brigades); • 1 submission from a special interest group (Nature Conservation Council); and • 1 submission from the general public. The DEC, Council and the Fire Brigades raised no objections to the proposal, and provided their recommended conditions of approval. However, both the Nature Conservation Council and a member of the general public objected to the proposal, raising concerns about the potential: • traffic impacts, particularly the increase in hazardous road tanker traffic along major routes through

the Port of Botany; • water quality impacts, particularly from the discharge of site runoff into Botany Bay; and • visual impacts, particularly on the residential areas to the east and west of the site across Botany

Bay. The Department has assessed these concerns in more detail below. 6. ASSESSMENT OF ENVIRONMENTAL IMPACTS

6.1 Traffic Management

Construction The construction of the proposed project would occur over 60 weeks. Construction activity would occur in three stages: excavation, initial construction and peak construction. The maximum volume of heavy vehicle traffic during the peak construction phase would be 60 heavy vehicles per day. The maximum volume of light vehicle traffic during the peak construction phase would be 80 light vehicles per day. After the initial construction phase of one month, heavy vehicle volumes would decrease to 1-2 vehicles per day for the rest of the construction period. Construction traffic would be spread evenly throughout the day so that only 20% of construction traffic would occur during the morning and afternoon peak periods. Impacts from increased heavy vehicles during construction would be offset by the concurrent reduction of 73 heavy vehicles per day associated with the end of container storage activities on Site B3. The Department is satisfied that the proposed site access route would accommodate the construction traffic, and that the level of service of all intersections would not change. Notwithstanding, Council has requested that Vopak prepare a Traffic Management Plan to manage driver behaviour and access arrangements prior to the commencement of construction of the facility. This has been included in the recommended conditions of approval. The proposal also involves the closure of the southern section of Friendship Road. Sydney Ports Corporation (SPC) plans to submit a separate application to redirect this section of road along an existing road easement to the south of the Stage B3 area (refer to Figure 5). As the southern section of Friendship Road is only used for emergency access, and an existing easement for emergency access will remain, the Department does not consider its closure and relocation would adversely affect any users of the Port Botany area.


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Figure 5: Proposed relocation of emergency access road Operation Both shipping and road traffic would increase as a result of the proposed expansion. Shipping movements would increase from 3 ships per month to 8 ships per month. This represents an increase in shipping movements at Port Botany of 2.5%. It is considered that the minor increase could be accommodated under existing circumstances. Furthermore, Vopak is currently discussing proposals for a second bulk liquids berth with the Department. Sydney Ports Corporation reviewed the proposal and did not raise shipping movements as a concern. The operation of the proposed expansion would generate 94 vehicles (80 trucks, 14 cars) in the local road network per day, in addition to the traffic generated at the existing storage facility. Council and the NCC raised concerns that this additional traffic would adversely affect the function of the local road network. However, Council and the NCC have not considered the fact that this increase in heavy vehicle traffic would be offset by the end of container storage activities on Site B3, which currently generate 73 heavy vehicles per day. Therefore, the net increase in traffic at the site would be only 21 vehicles (7 trucks, 14 cars) per day. Table 3 shows the predicted increase in daily vehicle movements. Table 2: Daily Traffic Movements during Operation

Component Existing movements per day (B1, B2 and container storage)

Future movements per day (B1, B2 and B3)

Change

Light Vehicles 12 26 +14 Heavy Vehicles 103 110 +7 Total 115 136 +21

These additional vehicle movements would be spread throughout the day and only 1 additional heavy vehicle would be present during the morning and afternoon peak periods. All traffic would access the

Existing emergency access to be closed

Easement to be used for emergency access in future


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site via Simblist Road and exit the site via Friendship Road. An increase of 21 vehicles per day (14 light vehicles and 7 heavy vehicles) is within the design capacity of these roads. The Department is satisfied that the operation of the proposed development would not have a significant impact on the surrounding road network because only 21 additional vehicle movements would be generated per day. Furthermore, only 7 of these movements would be heavy vehicles. The existing road network has sufficient capacity to accommodate this traffic without affecting levels of service. The Department is confident that traffic generated at the site will be adequately managed however the recommended conditions of approval restrict vehicle movements associated with the facility to non-residential roads and prevent vehicles from parking or queuing outside the site in order to ensure that traffic impacts are mitigated. 6.2 Hazards

The proposed project would receive, store and distribute fuel products, including flammable liquids such as petroleum, ethanol and biodiesel, and combustible liquids such as diesel. All of these liquids are potentially hazardous to humans and the environment. The movement and storage of these liquids can lead to hazardous events at several points in the handling process. Delivery and distribution via ship, road tanker and pipeline can lead to spillage and combustion of product. Similarly, structural faults in the storage tanks can result in vapour loss and spillage, which could lead to fires and explosions. Human error or control system failure can also result in hazardous events. Vopak has a safety management system at the existing Site B operations, which has been approved by the Department and has operated since 1995. The system has been reviewed during hazard audits which concluded that the system is generally adequate. Vopak proposes to extend this safety management system to the Stage B3 expansion. Vopak also proposes to extend site security features (such as human patrols, security cameras and fencing) to the Stage B3 site. Vopak prepared a Preliminary Hazard Analysis (PHA) for the proposed project which concluded that risk associated with the proposed project would be contained within the site and would not affect any adjoining properties. Overall risks from the project would comply with the Department’s guidelines for tolerable fatality, injury, irritation and societal risk. The issue of hazards was not raised in submissions as a significant concern and the NSWFB expressed satisfaction with the assessment of hazards in the EA. The Department has reviewed the PHA and is satisfied that all interfaces where hazards could arise (pipelines, transfer manifolds and loading areas) have been assessed and that adequate safety levels could be maintained to ensure the project would not pose an unacceptable risk to human and environmental safety. To ensure this occurs, the Department’s recommended conditions of approval require Vopak to prepare and implement several safety studies relating to fire safety, hazard and operability, and construction safety across the entire site. The conditions also require Vopak to prepare management plans for the transport of hazardous materials and emergencies. The safety management system for the project would be required to be audited on an annual basis. These conditions would ensure that the hazards issues related to the whole site are adequately managed and monitored. 6.3 Soil and Water Quality

Construction The construction of the facility involves demolition, earthworks and the laying of pipelines, which have the potential to generate erosion, sedimentation and contamination of waters. Vopak proposes to prepare a Soil and Water Management Plan for the construction phase of the project, which would outline excavation and stockpiling practices, drainage management and monitoring procedures to ensure that impacts on soil and water are mitigated. The disrupton to soil involved in the laying of pipeline would be minimised because all pipes would be laid in existing easements that are regularly disturbed. The Department is satisfied that the proposed earthworks are minor and that this approach would address the risk to soil and water quality posed by the construction of the project. To ensure this occurs, the recommended conditions of approval formally require Vopak to prepare the Soil and Water Quality Management Plan. Operation The proposal could adversely impact water quality via contaminated stormwater runoff from the tank storage areas, the road tanker loading bays; and general hardstand areas. To minimise this risk, the


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tank storage areas would be fully bunded. All of the storage areas would drain to the on-site waste water treatment plant which would treat the runoff prior to discharge to Botany Bay. Runoff from the road tanker loading area would be drained to a holding tank for off-site treatment. Runoff from general hardstand areas would drain to the existing interceptor pit, for settling and separation prior to discharge to Botany Bay. This is an exact duplication of the stormwater management system already operating for the existing facilities on the site. Vopak has an existing licence from the DEC that permits the discharge of 3500kL/day of treated runoff from site B into Botany Bay and specifies discharge pollutant limits. Vopak will apply to the DEC to increase the discharge limit to 7000kL/day as a result of the proposed expansion, whilst maintaining the existing pollutant limits. Vopak consider that existing monitoring and management measures on the site would be sufficient to comply with the pollutant limits permitted by the DEC licence. The Department and the DEC have reviewed the water quality management system and generally concur with this conclusion. The recommended conditions of approval require that the existing Water Quality Management Plans be updated to include the proposed expansion to ensure that runoff from the expansion is adequately managed. 6.4 Visual

Vopak’s Site B is located on a manmade peninsula in Botany Bay. It is visible from Yarra Bay to the east, Kurnell to the south and Brighton-le-Sands to the west. The proposed facilities would include white, 24 metre-high storage tanks and associated lighting masts which would be visually prominent. Council and the NCC raised concerns regarding the visual impact of the project on the Botany Bay area. Vopak prepared a series of photomontages to demonstrate the possible visual impact of the proposed facilities (refer to Figure 6). The Department considers that the visual impact of the proposed facilities would be limited due to the following reasons: • the Port Botany peninsula is characterised by industrial development, including existing bulk liquid

storage facilities; • the site is 1.5 kilometres from the nearest residential area; • the proposed facilities would be the same height as the existing tanks on Site B and would be

smaller than other structures in the vicinity, including the Orica hydrocarbon storage facility (26.9 metres) and the container cranes associated with Port Botany (55 metres high); and

• the proposed facilities would be located below the skyline and would not have a significant impact on regional views.

Vopak has also committed to ensuring that lighting at the site would not affect neighbouring properties in accordance with AS 1680.1-1990. The tanks must be painted white to prevent overheating of stored fuels, so there is little that can be done in terms of material finishes. Given the above mitigating factors, the Department is satisfied that the visual impact of the proposed project would be acceptable. The recommended conditions of approval require Vopak to ensure that lighting at the site complies with the relevant Australian standard.

Figure 6: View of the proposed facilities from Grand Parade, Brighton-le-Sands


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6.5 Consolidation of Consents

The facility currently operates under two consents and if the proposal is approved then it would operate under three different consents. In order to avoid confusion, streamline the regulatory process and ensure the impacts of the facility are managed for the site as a whole in accordance with current best practice, the recommended conditions of approval would consolidate the consents for the site into one instrument. 6.6 Other Issues

All other issues are considered to be minor and have been addressed as part of Vopak’s Statement of Commitments (refer to Appendix B) and the recommended conditions of approval (refer to Appendix A).

7. CONCLUSION The Department has assessed the EA and submissions on the proposal in accordance with the requirements of Clause 8B of the Environmental Planning and Assessment Regulation 2000. In light of the proposed mitigation measures, the Department is satisfied that the traffic, hazards, soil quality, water quality, visual and all other impacts associated with the development would be within acceptable limits. A number of conditions have also been recommended to ensure that the proposed project would not result in any significant impacts to the surrounding environment. The proposed project is located within an existing bulk liquid storage facility, in a broader port related industrial precinct. The nearest residential area is 1.5 kilometres from the site, and Vopak has demonstrated that hazards, noise and air quality impacts on these areas would meet relevant criteria. Traffic would access the facility via main roads, and increases in vehicle movements would represent only 7 heavy vehicles per day. The Department is therefore satisfied that the site is suitable for the proposed development. The Department believes that the proposed project would meet its key objective to provide safe and efficient storage and distribution facilities for bulk liquids. The proposed project would result in proportionately more fuel distribution via pipeline and ship than currently occurs at the site, thereby reducing the impact of road tankers on local traffic. The proposed project would also allow the fuel industry to better meet current demands for fuel in NSW. The Department is therefore satisfied that the proposal is in the public interest. The recommended conditions of approval would consolidate the Minister’s consents for the existing stages B1 and B2 and the current proposal for stage B3 under the one consent. This would simplify administration of the project and would ensure that the impacts of the project are managed and monitored in a whole-of-site context.

8. RECOMMENDATION The Department recommends that the Minister for Planning approve the proposal, subject to the attached conditions (refer to Appendix A). David Kitto Chris Wilson Director Executive Director Major Development Assessment Major Project Assessment Sam Haddad Director-General

Documents

MAJOR PROJECT ASSESSMENT: Vopak Stage B3 Facility