PORT OF NEWCASTLE PLANNING FOR THE FUTURE. The Case for a Container Terminal at Newcastle Prof Roy Green, Chair, Port of Newcastle

Transcription

1 PORT OF NEWCASTLE PLANNING FOR THE FUTURE The Case for a Container Terminal at Newcastle Prof Roy Green, Chair, Port of Newcastle

2 THE BOX THAT CHANGED THE WORLD Although only a simple metal box, the container has transformed global trade New research suggests that the container has been more of a driver of globalisation than all trade agreements in the past 50 years taken together - The Economist, May

3 WILL THE BOX CHANGE AUSTRALIA? Around 95% of the world s non-bulk commodity trade is containerised, amounting to $4 trillion a year in sectors such as advanced manufacturing & agribusiness Container trade is forecast to double in the next 20 years, with focus on smart specialisation by agile enterprises in global markets & value chains Australia s export trade is largely commodity-based, led by coal & iron ore, with post-mining boom transition to a more sustainable, knowledge-based economy Over 50% of containers leave empty from NSW, making fresh air our largest non-bulk export & highlighting opportunity for new areas of competitive advantage

4 PRECARIOUS FUTURE

5 NSW FREIGHT & PORT CHALLENGES Port Botany Currently 2.4m container movements a year, rising to over 5m a year by 2030 Massive congestion across Sydney as more than 80% of containers transported by road Huge investment required in road & rail infrastructure, with $60-80 tolls adding to freight costs Transport can account for 30% of final cost of goods, with 2.5% productivity gains from port competition STAGE TWO: 1.3 MILLION CONTAINERS THROUGHPUT CAPACITY Port of Newcastle Operating at 50% capacity & able to manage 2m container movements a year While 87% of container imports go to Sydney, only 36% end up in eastern Sydney with the rest to western Sydney & regional NSW, including 27% to Hunter & northern NSW Only 21% of container exports originate from eastern Sydney, with 22% from western Sydney, 18% from southern NSW & 38% from Hunter & northern NSW

6 NEWCASTLE MAYFIELD SITE Starting with Newcastle s catchment, this 80 hectare former BHP site could take 500,000 containers (TEUs) off Sydney roads & reduce NSW landside transport costs by at least $1.3bn

7 NEWCASTLE S CATCHMENT AREA Narrabri wheat Narrabri cotton

8 RAIL COST SAVINGS FOR EXPORTERS 70% Newcastle Rail Savings vs Port Botany 53% 640m 900m 1200m 1500m Cost Savings (%) 35% [Train lengths in metres] 18% 0% Tamworth - Newcastle Narrabri - Newcastle Moree - Newcastle Dubbo - Newcastle Dubbo - Newcastle (vs. Port Kembla) Origin and Destination Newcastle - Central Coast

9 GLOBAL GATEWAY FOR REGIONAL AUSTRALIA Port of Newcastle has capacity to more than DOUBLE its operations of 4,500 vessel movements a year with a viable & competitive container terminal It currently manages $24bn in trade value (167m tonnes), contributing over $1.8bn to NSW Gross State Product & 10,000 FTE jobs

10 REGIONAL DIVERSIFICATION STAGE ONE: 350,000 CONTAINERS THROUGHPUT CAPACITY Natural catchment is home to more than 27% of the State s population Catchment encompasses advanced manufacturing, renewable technologies, agribusiness Container terminal will cut transport costs by $200/TEU for regional exporters

11 MORE COMPETITIVE NSW STAGE TWO: 1.3 MILLION CONTAINERS THROUGHPUT CAPACITY NSW exporters can benefit from transport cost savings of more than 30% 38% of NSW exports originate from Hunter region, but currently exported out of Sydney Grow & retain trade in NSW, rather than lose trade to other States

12 TRANSFORMATION OF HUNTER & NSW ECONOMY STAGE 3: 2 MILLION CONTAINERS THROUGHPUT CAPACITY Optimal freight & ports network, with dedicated rail infrastructure replacing trucks Effective & efficient movement of freight Reduced congestion & increased productivity

13 RAIL FREIGHT INFRASTRUCTURE In medium to longer term, NSW will require investment in a new dedicated rail freight corridor between Newcastle & Port Kembla, with network of intermodals in western Sydney This will further reduce freight costs, increase freight and ports efficiency & mitigate Sydney congestion, making some costly road & rail infrastructure projects unnecessary

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15 NEWCASTLE 2022?