PORT OF NEWCASTLE CONTAINER TERMINAL PRESENTATION FEBRUARY 2018

Transcription

1 PORT OF NEWCASTLE CONTAINER TERMINAL PRESENTATION FEBRUARY 2018

2 WHAT WE DO Port of Newcastle has 89 employees. Our functions include: Trade and port development. Management of 792 hectares of port land. Wharf and berth services. Maintenance of major port assets. Vessel scheduling. Dredging and survey services. Cruise shipping. Legal, planning and environment. Finance. Community and stakeholder relations.

3 OUR SHAREHOLDERS The Infrastructure Fund (TIF) Port of Newcastle is part owned by The Infrastructure Fund (TIF). Gardior is the trustee and manager of TIF's stake in Port of Newcastle. TIF's stake is held on behalf of TIF investors. The Infrastructure Fund (TIF) is one of Australia's top performing infrastructure funds with a portfolio of Australian and overseas assets worth more than $2.4 billion. TIF investors include industry superannuation funds representing more than 2 million members, as well as other institutional investors. Gardior is a leading Australian infrastructure investment firm that prides itself on the ability to add value through structuring an ultimate alignment of interest for investors. The Gardior Board of Directors comprises representatives from TIF's investor base. China Merchants Group (CMG) CMG has operated in Australia for more than 20 years via LOSCAM (returnable packaging solutions) and Oriental Merchant (Asian food supplier). Founded in 1872 as the first commercial corporation in China. CMG s headquarters is located in Hong Kong. Global assets under management (2016) $1,000 billion across 18 countries, including 35 seaport and seaport related investments.

4 OVERVIEW OF THE PORT Australia s 3 rd largest port. 167 million tonnes of trade (value $24 billion) in Port activity contributes $1.8 billion to NSW Gross State Product and 10,000 FTE jobs per annum. Capacity to more than double current trade. Ability to diversify into a container terminal, automotive facility, and more bulk liquids.

5 2017 TRADE 25 Project Containers Break bulk Liquid Dry bulk 167 CARGO TYPES MILLION TONNES TOTAL TRADE NON COAL 8 million tonnes $24 BILLION TRADE VALUE COAL 159 million tonnes

6 LAND & SHIPPING CHANNEL The Port of Newcastle is only operating at 50% capacity Capacity = >5,000 ships* & >328 million tonnes of trade pa Current trade = 2,326 ships & 167 million tonnes of trade pa Vacant land that has deep water frontage, serviced and concept approval *By comparison, the major NSW ports (Newcastle, Kembla and Botany) handled 4,977 ship visits in total in 2016/17.

7 NEWCASTLE CONTAINER TERMINAL SITE The Port of Newcastle s Mayfield Site has the capacity to accommodate a 2 million TEU p.a. container terminal The Port is ready and has the required infrastructure to begin developing a container terminal now (including existing land, channel, road and rail connections).

8 CLOSE PROXIMITY TO THE CATCHMENT AREA

9 INLAND RAIL COMPETITIVE ADVANTAGE FOR NSW Newcastle will be the first port connected to the Inland Rail, via the Hunter Valley Network. North Star Moree The ability to bring long trains to Newcastle with the least amount of locomotive power drives competitiveness in the supply chain. E.g. the Dubbo to Newcastle connection is the lowest gradient crossing of the Great Dividing Range. Narromine Dubbo Narrabri Tamworth Coffs Harbour Parkes Bathurst PORT OF NEWCASTLE Stockinbingal Sydney Wollongong Inland rail connections Existing ARTC network Inland Rail

10 NEWCASTLE CONTAINER TERMINAL BENEFITS WE CAN BEGIN NOW. LOCATION Centrally located between Brisbane and Melbourne. Closer to north and north west NSW exporters than other NSW ports. AVAILABLE LAND The 80 hectare Mayfield Site has the capacity to handle in excess of 2 million TEU per annum. WELL CONNECTED Existing national rail and road connections, with huge capacity for growth. Newcastle will be one of the first ports to be connected to the Inland Rail. DEEP DRAFT VESSELS Newcastle s shipping channel accommodates deep draft vessels (15.2 metre deep channel) and can accommodate vessels up to 10,000 TEU and the capability of even larger vessels with some ancillary channel modifications. ROOM FOR GROWTH The Port of Newcastle s channel has capacity for more than 328 million tonnes and over 10,000 ship movements per annum.

11 BENEFITS FOR GROWERS Key benefits of a Newcastle Container Terminal: TRANSPORT COST SAVINGS of greater than 30% for central west and northern NSW exporters, making you more internationally competitive. REDUCED TRAVEL TIMES will deliver efficiency gains and cost savings. BRING LONGER TRAINS DIRECTLY TO THE PORT, saving growers time and money. MORE COMPETITION among shipping companies and stevedores could reduce prices for all exporters and importers in NSW.

12 BENEFITS FOR NEW SOUTH WALES Key benefits of a Newcastle Container Terminal: LESS NSW GOVERNMENT SPENDING a Newcastle Container Terminal requires minimal Government investment. By contrast, the Government has identified that billions of dollars in new supply chain infrastructure is needed to facilitate container growth at Port Botany and Port Kembla. LESS TRUCKS ON THE METROPOLITAN ROAD NETWORK which will help improve road safety. EASE ROAD AND RAIL CONGESTION IN SYDNEY by reducing freight movements through Sydney. ROOM FOR GROWTH in New South Wales trade, via an additional container terminal. RETAIN TRADE IN NSW which may otherwise be lost to Brisbane or Melbourne Ports when the Inland Rail is complete.

13 PROPOSED MAJOR INFRASTRUCTURE PROJECTS The NSW Government s Future Transport 2056 Strategy identifies that the container freight task alone is projected to grow by 176% over the next 40 years to 39.1Mt per annum. To meet this growth in container trade through Port Botany and Port Kembla alone, the NSW Government has costed the following infrastructure upgrades: PORT BOTANY Duplication of the Port Botany rail freight line $175 million Great Western Highway / Bells Line of Road improvements at least $3 billion PORT KEMBLA Maldon Dombarton freight rail link to add rail freight capacity in and out of Port Kembla $805 million Land reclamation of Port Kembla s Outer Harbour $700 million Total: at least $4.68 billion

14 RAIL COST SAVINGS 70% Newcastle Rail Savings vs Botany (a) 60% 50% 640m Cost Savings (%) 40% 30% 20% 10% 900m 1200m 0% Tamworth Newcastle Narrabri Newcastle Moree Dubbo Dubbo Newcastle Newcastle Newcastle Newcastle (vs. Central Coast Port Kembla) Origin and Destination 1500m (a) Comparison is against Botany unless otherwise stated

15 OUR ABILITY TO HANDLE LONGER TRAINS = GREATER COST SAVINGS 70% Newcastle Rail Savings vs Botany (a) 60% Tamworth Newcastle 50% Narrabri Newcastle Cost Savings (%) 40% 30% 20% Moree Newcastle Dubbo Newcastle Dubbo Newcastle (vs. Port Kembla) 10% Newcastle Central Coast 0% 640m 900m 1200m 1500m Rail (Train Length) a) Comparison against Botany unless otherwise stated.

16 OVERALL ADVANTAGES RAIL BENEFITS Lower comparative below rail access charges for transport by rail through the ARTC Hunter Valley Network (by net tonne km) as opposed to transport to Port Botany. Reduced cycle times as the Port of Newcastle can receive longer trains e.g. up to 1,500m, whereas Port Botany is limited to 600m trains (1,200m trains can be accepted to Sydney intermodal terminals but need to be split before receival at Port Botany). Reduced terminal handling charges as trains travel direct to the Port of Newcastle through the highly efficient ARTC Hunter Valley rail network. ROAD BENEFITS Direct access to the Port of Newcastle for higher productivity vehicles such as B Doubles. Significantly shorter transit to and from Newcastle Port and thus reduced cost. Reduced terminal handling charges as trucks often arrive at an intermodal terminal within Sydney rather than transiting direct to Port Botany.

17 NARRABRI Cost savings for growers* It is nearly 40% cheaper to rail freight Narrabri to the Port of Newcastle It is 13% cheaper to truck freight from Narrabri to the Port of Newcastle *compared with Port Botany Rail: 37% cost saving for 640m train, 39% cost saving for a 900m or 1200m train. Road: Applies to Semi (19m) and a B Double (25m). ROAD RAIL

18 TAMWORTH RAIL Newcastle ROAD Newcastle Cost savings for growers* It is nearly 50% cheaper to rail freight from Tamworth to the Port of Newcastle It is 15% cheaper to truck freight from Tamworth to the Port of Newcastle *compared with Port Botany Rail: 47% cheaper for 640m trains, 49% cheaper for 900m and 1200m trains Road: Applies to Semi (19m) and a B Double (25m)

19 DUBBO RAIL Cost savings for growers* It is 12 15% cheaper to rail freight from Dubbo to the Port of Newcastle than to Port Botany It is 15 38% cheaper to rail freight from Dubbo to the Port of Newcastle than to Port Kembla It is 3% cheaper to truck freight from Dubbo to the Port of Newcastle (compared with Port Botany, and 8% cheaper to truck freight from Dubbo to the Port of Newcastle (compared with Port Kembla). Rail: Newcastle v Botany 12% cheaper for 640m trains, 14% cheaper for 900m and 15% cheaper for 1200m trains Rail: Newcastle v Kembla 15% cheaper for 640m trains, 31% cheaper for 900m trains and 38% cheaper for 1200m trains Road: Applies to a Semi (19m). ROAD

20 MOREE Cost savings for growers* It is up to 32% cheaper to rail freight from Moree to the Port of Newcastle It is 12% cheaper to truck freight from Moree to the Port of Newcastle *compared with Port Botany Rail cost savings: 29% for 640m trains, 31% for 900m trains, 32% for 1200m trains Road: Applies to Semi (19m) and a B Double (25m) RAIL ROAD

21 GOVERNMENT TRANSPORT POLICIES The following policies are in development. We would appreciate your advocacy for a Newcastle Container Terminal. NSW Government Draft NSW Freight and Ports Plan submissions are due by 25 March freight and ports plan Draft Future Transport Strategy 2056 (the overarching transport strategy) Submissions have closed. PON has made a submission. The strategy is due to be released by mid content/uploads/2018/plans/future Transport Strategy 2056.pdf Federal Government National Freight and Supply Chain Strategy Submissions have closed. The plan is due to be released in March strategy.aspx

22 HOW THE PORT S CAPACITY BENEFITS NSW THE PORT OF NEWCASTLE S ADVANTAGES Channel Capacity to > double ship movements including different type / size of vessels Capital dredging approved for berth pockets Land 200 ha available including the 80 ha Mayfield Site (deep water, zoned, remediated, serviced, approved berth pockets, rail access) Planning approval for additional capacity of bulk liquids Road Connected to national highway (no impact on urban road system) Local and arterial road capacity Proximity to M1 (North Connex, Golden Highway, Pacific Highway) Rail ARTC HV and Main North network Connectivity to CRN Future connectivity to IR Natural catchment Export market: bulk & containerised We need a NSW Freight and Ports Plan that supports diversification of trade in Newcastle for the benefit of NSW Newcastle Container Terminal East Coast Bulk Terminal Major Fuel Import Destination Automotive Hub A THREE PORT SOLUTION TO THE NSW FREIGHT TASK WOULD DELIVER Allows ports to compete commercially Efficient utilisation of existing vacant land No need to reclaim land Efficient utilisation of existing State transport networks No major capital infrastructure spend Cost savings to growers / cargo owners Can export through nearest port Ease congestion and improve amenity in Sydney

23 THANK YOU