Industrial land users and developers in New South Wales have been watching closely the changes in transport infrastructure. These changes include the implementation of the NSW Ports Growth Plan, the (near) completion of the M7 Orbital and the commencement of the Lane Cove Tunnel.
Transport and logistics activities comprise the bulk of industrial land users and these changes impact on both their business operations and demand for space. State and local government planners are aware of this and are analysing the impact of these changes on demand for appropriately zoned industrial land.

Land with good access to ports through the main transport routes is valuable and many transport and logistics operators will commit readily to such sites.

Terminology

TEU - Twenty Foot Equivalent Units (a twenty foot container)

Post Panamax
– the size benchmark of ships is the width of the Panama Canal; a Panamax vessel has a capacity of 4,600 - 4,800 TEU's. A post Panamax is larger than this with ships around 6,000 – 8,000 TEU’s. Ship builders and shipping companies are discussing sizes up to 12,000 TEU’s.


NSW Ports Growth Plan

The NSW Ports Growth Plan started in 2003 and is being implemented in stages. The most recent announcements have been for the relocation of the vehicle handling operations from Glebe Island to Port Kembla and for the upgrading and extension of the facilities at Port Botany.

Furthermore the NSW Ports Growth Strategy is interlinked with other ports and freight related initiatives at both a state and local government level. The Freight Infrastructure Advisory Board has recently handed down its recommendations and the impact of the growth strategy is resulting in the redevelopment of ports related lands.

The interrelationship between these different initiatives can be summarised as follows:-

Port & Management Organisation Current Situation NSW Ports Growth Plan

Freight Infrastructure Advisory Board (FIAB)

Set up to prepare a framework for increasing the share of container freight transported by rail

Local and Regional Initiatives
Port of Newcastle
Managed by Newcastle Port Corporation (NPC)
Predominantly Export
Major exporter of coal (bulk)
Some bulk agricultural products
Development of a multi purpose terminal (MPT) located on the former BHP Steelworks site (40-45ha) which will enable container handling   Regional Land Management Corporation (RLMC) currently facilitating the release of port related land at Kooragang Island (1,300ha) and Tomago (545ha)
The former BHP lands adjacent to the proposed MPT have been Masterplanned
Sydney Harbour and Botany Bay
Managed by Sydney Ports Corporation (SPC)

Predominantly Imports

  • Overseas Passenger Terminal – passengers
  • Darling Harbour – containers
  • White Bay/Glebe Island – bulk chemicals/minerals and agricultural products, motor vehicles
  • Botany Bay – containers
Relocation of container handling from Darling Harbour to Port Botany
Relocation of vehicle import activities to Port Kembla, announced October 2005
Upgrade and expansion of Port Botany to include a new terminal
Requirement to move freight off Sydney’s roads - proposing inter-modal hubs at
  • Enfield
  • Moorebank
  • Eastern Creek
  • Ingleburn
  • Minto
Development of Enfield inter-modal hub which is managed by Sydney Ports Corporation
Port Kembla
Managed by Port Kembla Port Corporation (PKPC)
Predominantly Exports
Exporter of steel and grain
Extension of the multi purpose berth and development of a general cargo handling terminal in the Inner Harbour
Reclamation of land and development of 2 new berths in the Outer Harbour
Relocation of vehicle import activities to Port Kembla, announced October 2005
  Development of port lands (40ha) in the Inner Harbour
Development of land (30ha) to be reclaimed in the Outer Harbour
Wollongong City Council, PKPC and DIPNR have formed a project control team to develop a land use strategy for industrial and port areas of Port Kembla; this will include revised planning controls.

 

Much of the focus of the Ports strategy has been on the land-based transport and capacity issues; however these are also being influenced by maritime based trends including the move towards larger ships. The ability of ports to handle post-Panamax ships is a constraint, often necessitating channel deepening as in the case of Port of Melbourne.

This trend toward larger ships is predominantly noticed with bulk cargo (oil carriers) and container ships. Larger ships are able to offer a cheaper per unit cost in transporting goods. However, larger ships also involve longer docks, larger cranes and deeper channels.

This increasing size of ships is also an indication of the concentration in the international shipping industry with large shipping lines often able to dictate terms to port operators. Port operators around the world in order to facilitate trade through their port are mindful of the ability of other ports with greater capacity to compete. Many port operators are constantly upgrading facilities to accommodate the larger ships.

These trends have encouraged the relocation of operations from facilities in Sydney Harbour west of the Harbour Bridge due to the inability of these large ships to get below the bridge. As a consequence development is concentrating on ports with few maritime capacity constraints.

Newcastle MPT and Adjacent Lands

The Newcastle MPT is being developed on the former BHP lands to the south of the Hunter River (south arm). This will initially entail construction of a multi purpose facility with the capacity for at least 1 million TEU’s pa, which will have post-Panamax capacity. Further construction may include a general cargo handling facility, and further expansion of container and general cargo operations. This is being managed by NPC

 

Newcastle MPT and Adjacent Lands
 
  Source: Newcastle MPT
 

The MPT only occupies part of the site which is 150ha in total; the remaining lands are to be developed with industrial and commercial uses. These lands have been Masterplanned to facilitate this development and this process is being managed by the RLMC.

The development of these lands is also creating opportunities for port related industries, freight forwarders, transport operators, importers and exporters.

Kooragang Island and Tomago Sites

Lands on Kooragang Island comprise government lands plus former BHP lands; these lands total 1,300ha. Approximately 100ha is already occupied by Graincorp, Tomago Aluminium, Sims Metal, Toll Transport, Barclay Mowlem, BOC Gases and HiFert. A further 800ha is zoned for environmental protection.

Development of the remaining 400ha is being facilitated by the RLMC and proposals being considered include coal loading, manufacturing, bulk goods handling and industrial development.
The Tomago site comprises 545ha on the Hunter River (north arm). This land is being marketed for sale and proposals include both light and heavy industry.

Port Botany

Stage One of the expansion of Port Botany is to comprise a new terminal with 4 berths, the reclamation of 51 hectares of land and the road and rail access to these new facilities. There is the potential for further expansion which would involve a new berth, the location of which is to be finalised.

 
 
   
This expansion will facilitate the entry of a new stevedore operator into this sector which is currently dominated by Patrick Corp and P & O Australia.

Enfield Inter-Modal hub

The development of an inter-modal logistics hub on the Enfield Marshalling yards is anticipated to comprise loading and unloading facilities, warehousing operations, an open container storage area and an associated light industrial precinct.

This project is currently at the Environmental Impact Study and community consultation stage.

Port Kembla

The upgrading and expansion of Port Kembla will involve facilities in both the Inner and Outer Harbours.

Inner Harbour
– This will involve an upgrade of the multi-purpose berth to bring it to 4 berth capacity and construction of a general cargo handling terminal. These facilities will accommodate the shipping and cargo that will be redirected from White Bay and Darling Harbour when the leases on those facilities expire in 2006.

Outer Harbour
– This is a longer term project and is anticipated to involve the reclamation of 30 hectares of land and the addition of new berths and terminal facilities. These could accommodate bulk cargos (liquids, minerals and agricultural products).

Conclusion

These changes at the maritime level have profound implications for land based distributions and storage systems. This is creating significant opportunities for further development especially where new transport infrastructure is concerned. Furthermore these factors are being evaluated because both state and local planning bodies are creating land development opportunities both now and into the future.