Addressing commercial and practical issues to assure the success of intermodal terminals

Presentation by

Llew Russell, CEO

Shipping Australia Limited

to

AusIntermodal 2012

30-31 October, Melbourne

On

“Addressing Commercial and Practical Issues to Assure the

Success of Intermodal Terminals”

What problems can intermodal terminals address?

“Build it and they will come” approach

Definition of intermodal terminals in metropolitan areas

What do we collectively need to do?

Optimisation of capacity at intermodal terminals

Co-operation of the Border Agencies

Topics to be addressed

www.shippingaustralia.com.au

Whilst demand forecasts for container growth are now becoming

more uncertain, there is no doubt that over the next ten to fifteen

years we will be facing capacity constraints at our major

container terminals – especially Sydney, Melbourne and

Fremantle

Over the past couple of years, serious congestion has already

been experienced in Sydney and Fremantle – we acknowledge

current investment plans should assist (e.g. automation/semi-

automation and a new third stevedore in Brisbane and Sydney

and eventually Melbourne)

But holistic approach required to raise productivity

Problems to be addressed


Forecast Container Growth


Figure 1: International container volumes handled at major ports 2010 (percentage)

Source: BITRE Waterline Issue 49, 2011

Forecast Container Growth


Table 1: Forecasted Australian international container volumes (TEU), 2010–2025

Year Melbourne Sydney* Brisbane Fremantle Adelaide Total

2010 2,112,000 1,927,506 1,526,000 582,400 352,500 6,500,406

2015 2,800,000 2,634,641 2,023,000 772,000 467,300 8,696,941

2020 3,676,000 3,635,299 2,656,000 1,013,000 613,300 11,593,599

2025 4,620,000 5,033,446 3,338,000 1,274,000 770,900 15,036,346

Source: Booz & Company, Intermodal Supply Chain Study, 2009, prepared for National Transport Commission (*Sydney

figures provided by Sydney Ports Corporation.)

At the highest level an intermodal terminal (IMT) is a facility used

to provide for the transfer of freight from one mode to another for

a through transport journey

we are restricting our view to metropolitan areas

similar benefits can be gained with say HPV’s undertaking

the transfer from container terminals and then smaller trucks

“for the last mile” but more freight on rail is the objective

We believe they should be inland ports with all facilities

available C.F. the port itself.

Definition of Intermodal Terminals


Containers selected for delivery to the intermodal terminal prior

to arrival

Plan for same day transfer following discharge from the vessel

Stevedore arranges transfer and accepts liability up to delivery at

the IMT

Cargo to move underbond

Border Agency services at the IMT

Warehousing, container cleaning and repairs, empty container

storage

Inland Ports


In Sydney, development of the Enfield IMT well under way

should be operational towards the end of next year

Moorebank IMT is contentious. Qube versus a public facility but

should be ready 2017/18, with a total capacity of over one million

TEU’s

Current Developments


Enfield ILC concept plan,

image courtesy of Sydney

Ports Corporation

In Melbourne, further development of IMT’s at Somerton,

Laverton, Altona and a new IMT near the Dandenong's

In Fremantle, further development of Forestfield

Current Developments (cont’d)

www.shippingaustralia.com.auImage courtesy of Sydney Ports Corporation

In Melbourne, further work is required for an efficient rail

interface

Reasonable to develop both rail-road and road-road IMT’s

until a critical mass is achievable

Despite HPV’s being employed on the road infrastructure, in

the medium to long term, Melbourne’s freight task will have

to be developed using rail transport to relieve pressure on

the roads and to extend the life of the port

In Sydney, freight on rail is the only answer

rail freight has declined in recent years

Current Developments (cont’d)


In one sense, this is true in that some volume will be directed

towards these IMT’s but it will be relatively low utilisation and

less than optimal

Basis of the SAL Metropolitan Intermodal Study released in

January this year

what is needed to achieve optimal utilisation?

In metropolitan areas, low contribution of freight on rail is due to

its high costs of operation and poor service quality compared to

road transport

“Build it and they will come”!


SAL study found that to transport the expected throughput of

300,000 TEU’S per year at Enfield, it is imperative that the

Enfield Intermodal Logistics Centre run at least seven 600-metre

train shuttles through the port daily, with 60% of the train loaded

to achieve 108 TEU per round trip or 270,000 TEU p.a.

at peak efficiency almost 130,000 truck trips a year could be

taken off Sydney roads

SPC rail reforms will be important

Attractiveness to store empty containers there will depend upon

price/reliability and efficiency/capacity of rail transport to deliver

the empty containers to the container terminal expediously

What Needs to be Done?


Better aligning of rail paths and time windows

Streamlining shunting and inspection activities

Underbond movements

What support is required in the initial years (lower rail access fees?)

Double stacking of containers using low-slung rail wagons, where

feasible

Investing in IT infrastructure and establishing operational standards

Constructing dedicated rail freight lines that link to IMT’s

part of the plan in Sydney

Identifying solutions to increase train utilisation

e.g. increase empty container movements

Optimisation of Capacity of IMT’s


Freight and Logistics Councils in the States need to address

these issues with all stakeholders

Ministerial Freight Advisory Council in Melbourne is an excellent

start

involvement of Ministers very important as is a good

representation of stakeholders

Optimisation


Industry needs to work with the Australian Customs and Border Protection

Service, DAFF Biosecurity and the Office of Transport Security to achieve

practical solutions that meet all legislative requirements

AC& BPS need to be assured that security around underbond movements

meets requirements

not proposing duplication of x-ray facilities but may need other

facilities at the IMT : need to be involved early in the planning process

DAFF Biosecurity need to be also consulted early in the planning process

e.g. what facilities required?

Office of Transport Security

Whether these facilities should be security regulated areas under

MTOFSA

Border Agencies


Questions?


Business

Addressing commercial and practical issues to assure the success of intermodal terminals