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SUBMISSION RE: THE DRAFT FUTURE TRANSPORT 2056 STRATEGY• DRAFT FUTURE TRANSPORT STRATEGY 2056• REGIONAL NSW SERVICES AND INFRASTRUCTURE PLAN• GREATER SYDNEY DRAFT SERVICES AND INFRASTRUCTURE PLAN• DRAFT TOURISM AND TRANSPORT PLAN
DECEMBER 2017
TABLE OF CONTENTS
CONTENTS PAGE
1. EXECUTIVE SUMMARY 3
2. OVERVIEW OF THE PORT OF NEWCASTLE 4
2.1 ECONOMIC GROWTH 6
2.2 CREATING GLOBAL CITIES 7
2.2.1 RAIL CONNECTIONS 7
2.2.2 ROAD CONNECTIONS 8
2.2.3 SEA CONNECTIONS 8
2.2.4 AVAILABLE LAND 8
2.2.5 CASE STUDY: COST SAVINGS FOR NSW FARMERS 9
3. RESPONSE TO THE DRAFT FUTURE TRANSPORT STRATEGY 10
4. RESPONSE TO THE DRAFT REGIONAL NSW SERVICES AND INFRASTRUCTURE PLAN 12
5. RESPONSE TO THE GREATER SYDNEY DRAFT SERVICES AND INFRASTRUCTURE PLAN 16
6. RESPONSE TO THE DRAFT TOURISM AND TRANSPORT PLAN 17
7. CONCLUSION 19
8. REFERENCES 20
ATTACHMENT A - PORT OF NEWCASTLE TRADE 2016-17 21
ATTACHMENT B - PORT OF NEWCASTLE MAP 22
© Port of Newcastle December 20172
There is significant freight growth capacity within the Port of Newcastle and its road and rail supply chains. This
capacity is extremely valuable to New South Wales, offering a competitive advantage over other states which need to build new port, road and rail facilities.
Berth side rail connection.
15.2m deep shipping channel can handle more than 10,000 ship movements and more than 328 million tonnes of trade per annum.
Superior national road and rail network connections. Direct heavy vehicle access to the berth.
EXECUTIVE SUMMARY
I welcome the opportunity to respond to the Draft Future Transport 2056 Strategy.
The Port of Newcastle is the third largest port in Australia and a key economic driver for New South Wales. It services a large part of the state including the Hunter region, the central west and the north, providing efficient and cost effective export and import facilities and access to growing Asian markets.
Transport is critical to our business. High quality, strategically located rail networks provide for efficient and cost effective transport for our customers. This is key to economic growth, creating global cities and tourism.
Port of Newcastle activity contributes around $1.8 billion to Gross State Product and 10,000 full time equivalent jobs per annum.
There is significant freight growth capacity within the Port of Newcastle and its road and rail supply chains. This capacity is extremely valuable to New South Wales, offering an unrealized competitive advantage over other states which need to build new port, road and rail facilities.
The Port of Newcastle’s capacity includes: • 200 hectares of vacant port land;• A shipping channel that can handle more than
10,000 ship movements per annum – that is more than double the Port of Newcastle’s current trade, and is equivalent to the current annual ship visits of all of the ports within NSW.
• Direct connections to the ARTC’s national rail network which has considerable capacity for container freight growth, alongside growth in
coal and other bulk cargoes; and • Direct, unconstrained access to the national
heavy vehicle road network.
The Port of Newcastle will be the first port to be connected to the Inland Rail, via the ARTC Hunter Valley Network. This presents an opportunity for New South Wales to capture and maintain NSW trade which may otherwise be lost to Victoria (the Port of Melbourne) or Queensland (the Port of Brisbane) once the Inland Rail is complete. For example, the Port of Newcastle has the capacity to develop a 2 million TEU container terminal.
The potential of realising these opportunities forms an integral part of Port of Newcastle’s diversification strategy. They are key to capitalising on the abundant capacity of the Port and also to delivering lower cost supply chain options to customers and users of the Port.
To ensure that transport strategy positions New South Wales exporters in the strongest possible position in a changing global market, it is essential that transport and freight strategies take a state-wide view. The capacity and value that the Port of Newcastle and its road and rail supply chains offer is too valuable to ignore.
Port of Newcastle is currently shaping a 20 year master plan for the Port and would welcome closer engagement with the NSW Government and its agencies, recognising the value that the Port’s capacity offers to the NSW economy.
Geoff CroweChief Executive Officer, Port of Newcastle
THE PORT OF NEWCASTLE AT A GLANCE200 hectares of vacant port land ready for development.
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OVERVIEW OF THE PORT OF NEWCASTLE
3rdLARGEST PORT IN AUSTRALIA
c$23BILLION
VALUE OF TRADE IN 2016-17
#1WORLD’S
LARGEST COAL EXPORT PORT
OUR ROLE Port of Newcastle is the commercial manager of the Port and has a 98-year lease with the NSW Government. We manage:
• Trade and port development.• 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 environmental services.• Community and stakeholder relations.
Port of Newcastle works in partnership with the Port Authority of NSW, customers and port and supply chain service providers to run a safe and efficient port.
Newcastle is the second largest city in NSW and is part of the Hunter region. The Hunter region is the largest regional economy in Australia and is the largest regional contributor to New South Wales’ gross domestic product.
The Port of Newcastle is Australia’s third largest port and the largest on the east coast by tonnage. It makes a significant contribution to New South Wales trade, handling more than 170 million tonnes per annum, valued at nearly $23 billion.
Port activity alone contributes around $1.8 billion and around 10,000 full time equivalent jobs per annum to the New South Wales economy. This does not include the substantial economic contribution of the coal mining and agricultural industries.
Close to major centres (kilometres)• Sydney - 161 kms• Brisbane - 781 kms• Dubbo - 377 kms• Convenient heavy vehicle and rail transit times
to Sydney and major NSW rural centres.
Shareholders with global expertisePort of Newcastle’s shareholders are The Infrastructure Fund (TIF) and China Merchants Group.
TIF investors include industry superannuation funds representing more than 2 million members, as well as other institutional investors. TIF is one of Australia’s top performing infrastructure funds with a portfolio of Australian and overseas assets worth more than $2.4 billion.
China Merchants Group was established in 1872 as the first commercial corporation in China and now has more than $1,000 billion in global assets under management across 18 countries.
Port of Newcastle operates under a 98-year lease with the NSW Government which commenced in May 2014.
25thLARGEST PORT
GLOBALLY
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OVERVIEW OF THE PORT OF NEWCASTLE
The Port of Newcastle’s natural catchment area extends west to Parkes and north to Moree, taking in Dubbo, Tamworth, Armidale, Narromine and Walgett. It encompasses land rich in minerals and agriculture, meat, timber and the manufacture of steel and aluminium.
The Port handles more than 170 million tonnes of trade and 4,600 ship movements per annum. Its 25 cargo types span the variety of modes including dry bulk, bulk liquids, break bulk, project, Ro-Ro passenger and containers.
As the world’s largest coal export port, the Port of Newcastle and its rail supply chain demonstrate the capability to move one of the largest haulages of export trade in Australia. The rail supply chain is also equipped to accommodate other large scale freight.
The Port of Newcastle’s advantages include:• 200 hectares of vacant portside land with
existing deep water access, including the 90-hectare Mayfield Site, which is the largest parcel of vacant portside land on Australia’s east coast.
• An 11 kilometre shipping channel which can handle more than double the Port’s current trade - that is, more than 10,000 ship movements per annum.
• Berthside connection to the national ARTC and Hunter Valley rail networks with huge potential for trade growth.
• Road connectivity to the national heavy vehicle network, without capital city traffic congestion.
The Port of Newcastle imports building materials, equipment and fuels which support developments across New South Wales.
Port of Newcastle has identified a strategic opportunity to develop a container terminal at its Mayfield Site. A container terminal would: • Allow NSW exporters to choose the most efficient
and cost effective supply chain.• Provide a competitive, alternate supply chain for
import cargo that is destined for north western NSW.
• Provide greater competition throughout the supply chain, generating cost savings for NSW importers, exporters and consumers.
• Retain trade in NSW which could otherwise be lost to Brisbane or Melbourne Ports, post Inland Rail.
• Save the Government in excess of $1 billion in infrastructure investments elsewhere as it provides an existing supply chain.
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ARMIDALECOFFS HARBOUR
SCONE
NARRABRI
WALGETT
NARROMINE
BOURKE
BROKENHILL
COBAR
ALBURY
GRIFFITH
BATHURST
PARKES
WAGGAWAGGA
GUNNEDAH
GARAH
MOREE
NORTHSTAR
COOTAMUNDRA PORT KEMBLA
PORT BOTANY
PORT OF NEWCASTLE
PORT OF BRISBANE
SYDNEY
TO MELBOURNE
CANBERRA
QUEENSLAND
VICTORIA
NEW SOUTH WALES
NYNGAN
PORT MACQUARIE
COONAMBLE
MUDGEE
TAMWORTH
FORBES
WARREN
BLAYNEY
ORANGE
WYONG
GOSFORD
WEE WAA
DUBBO
GOONDIWINDI The Port of Newcastle has direct road and rail connections throughout central, west and north-west New South Wales.
Inland Rail (proposed)
ARTC Network
Country Rail
Sydney Metropolitan Network
Port of Newcastle’s natural catchment area
THE NSW GOVERNMENT’S HUNTER REGIONAL PLAN 2036
The NSW Government’s Hunter Regional Plan 2036 notes that the Hunter region is ‘the largest regional economy in Australia, ranking above Tasmania, the Northern Territory and the Australian Capital Territory in terms of economic output. It drives around 28 per cent of regional NSW’s total economic output and is the largest regional contributor to the State’s gross domestic product’.
The plan also notes that ‘the Hunter is strategically situated to leverage proximity to Asia and the region’s growing agricultural, health, education and tourism sectors to supply developing Asian economies with resources and products’.
The NSW Government notes that ‘the Port of Newcastle will continue to play an important role in the regional economy through the international export of goods and commodities (including coal and grains) from the Hunter and Regional NSW. It is the largest coal exporting port in the world. The Port of Newcastle has diversified its operations over time to respond to changing markets and demands. The port’s facilities and services will need to remain responsive to changes arising from global demand and national economic policy’.
Actions of the plan include:• 2.1 Promote diversification of operations at the
Port of Newcastle and the Newcastle Airport and enhanced connectivity to the Asia-Pacific.
• 4.4 Promote freight facilities that leverage the Port of Newcastle and its associated freight transport network.
• 4.5 Plan for multimodal freight facilities that support economic development of the region and respond to the location of the proposed Freight Rail Bypass.
• 26.3 Protect existing and planned major infrastructure corridors and sites, including inter-regional transport routes like the M1 Pacific Motorway and the railway, port and airports to support their intended functions.
2.1 ECONOMIC GROWTHThe Port of Newcastle’s capacity is a strategic advantage to New South Wales exporters. It is also a significant competitive advantage for New South Wales against other states, as minimal government investment is required to unlock its capacity.
By comparison, other states would need to spend billions in land reclamation, capital dredging and new road and rail networks to expand the capacity of their ports.
The NSW Government in its Hunter Regional Plan 2036, published in 2016, recognises that ‘domestically, the Hunter has competitive advantages courtesy of its proximity to the rapidly growing Sydney market, connectivity to regions to the north, west and south, and the export capability available through the Port of Newcastle and Newcastle Airport’ (P29).
The Port is also an important driver of economic growth for regional New South Wales, contributing to the growth and diversification of regional economies from Parkes in the west to Moree in the North, including the significant regional centres of Dubbo, Tamworth, Armidale, Narromine and Walgett.
The NSW Government’s New England North West Regional Plan 2036, published in 2017, notes that ‘connectivity to gateway airports and ports in Newcastle, Brisbane and Sydney through strong transport networks and new telecommunications choices will be the backbone of the economy and communities’ (P17).
The Port of Newcastle was leased in May 2014, following the lease to the private sector of Port Botany and Port Kembla in 2013. Long-term private-sector stewardship provides an incentive for port managers to maximise port capacity, explore new trade opportunities and compete for trade. An open market and increased competition is good for New South Wales exporters, offering them the choice of the most efficient and cost-effective supply chain for their cargo.
Economic Impact of the Port of NewcastleAn initial $1 of output in the port sector leads to a flow-on effect in the other sectors of the New South Wales economy of $1, giving a total effect of $2.Each dollar of output also generates 30 cents in direct household income (i.e. wages and salaries paid to employees of port-related firms and organisations) and a further 27 cents to workers in associated industries. Similarly, each dollar of output results in 52 cents in value added in the port sector and a further 49 cents in value added in other sectors of the economy.
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AHunter Regional Plan 2036
2036
Planning &Environment
Hunter
PlanRegional
2.2 CREATING GLOBAL CITIES
The Port of Newcastle is connected to national road and rail networks which give New South Wales producers direct access to growing Asian markets.
2.2.1 Rail ConnectionsThe Port has direct access to the national Australian Rail Track Corporation (ARTC) network via:• The North South Rail Corridor connecting
Brisbane, Sydney and Melbourne, and • The Hunter Valley Rail Network connecting the
port to the Hunter Valley and Western NSW.
Via the national ARTC network, the Port is connected to Western Australia, South Australia, Queensland and Victoria. The completion of the North Sydney Freight Corridor Stage 1 also provides improved access and additional rail paths into Sydney via the Sydney Metro Network.
Ninety seven percent of the Port of Newcastle’s trade is moved by rail and the vast rail network that enables the efficient movement of coal also benefits other trades, such as grains and mineral concentrates.
Rail freight infrastructure to the Port of Newcastle also allows Australian grain producers to make significant transport cost savings by railing their
freight to the Port. This increases the global competitiveness of New South Wales farmers.
Investment in regional infrastructure such as bridge upgrades will provide the opportunity to increase train axle loads within the existing network and facilitate trains running more economically into Newcastle.
This represents a more economical option for governments than investing in new rail connections elsewhere. For example, smaller ‘enabling projects’ that can utilise, improve and enhance the existing rail network for greater efficiency, productivity and consequence and will ensure that this investment in the Inland Rail is fully captured and leveraged for the benefit of the NSW Budget and taxpayer.
Growers, producers and customers need to compete effectively on cost and the Port of Newcastle can deliver a superior service and cost solution for customers.
There is increasing congestion around capital cities and the roads surrounding these ports. Regional ports can offset some of this congestion by feeding capital cities from the outside-in.
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Bathurst
Parkes
DubboNarromine
Narrabri
Moree
North Star
Coffs Harbour
Tamworth
Wollongong
Sydney
PORT OF NEWCASTLE
Stockinbingal
Pictured: The proposed Inland Rail and connections to the Port of Newcastle.
The Port of Newcastle will be the first port to be connected to the Inland Rail. This is an opportunity for New South Wales to retain trade which could otherwise be lost to Victoria or Brisbane when inland rail connections to Melbourne and Brisbane Ports are complete.
The first stage of the Inland Rail will intersect the east-west corridor at Parkes, improving the existing connection to the Port directly with regional catchments in New South Wales without the need to use congested capital city rail networks.
This introduces improved alternatives to road freight as well as the opportunity for the establishment of market-led supply chains through increased choice and competition between modes (road vs rail) and choice of export ports.
CONNECTIONS TO THE INLAND RAIL
2.2.2 Road ConnectionsThe Port’s private road network creates efficiencies by enabling customers to drive their trucks between the berth and storage facilities without accessing a public road network.
All berths in the Port of Newcastle are B Double accessible. Port roads can accommodate overmass and oversized cargoes such as the 63 metre long wind turbine blades that were imported in July 2017 – the largest to arrive in Australia.
Additionally, Port of Newcastle maintains 13 kilometres of publicly accessible roads to Australian standard within the port boundary. These have a pre-approved package with the National Heavy Vehicle Regulator for oversize and overmass cargoes.
Roads to and from the Port of Newcastle are uncongested, providing an opportunity to relieve some of the congestion experienced by other NSW ports.
2.2.3 Sea ConnectionsThe Port of Newcastle has capacity to accommodate more than 10,000 vessel movements per annum.
The Port of Newcastle has existing shipping connections throughout Asia, providing an opportunity for more New South Wales exporters to reach emerging Asian markets.
2.2.4 Available Land The Port of Newcastle has 200 hectares of vacant land available for port related developments including warehousing. It also has a concept approval for the redevelopment of a 90 hectare site for port facilities including container handling and supporting road and rail infrastructure.
A Newcastle container terminal and intermodal hub could reduce supply chain movements and handling costs. The Port’s land is zoned under the NSW Government’s State Environmental Planning Policy (Three Ports) 2013 which allows for port-related developments.
2.2 CREATING GLOBAL CITIES (CONTINUED)
THE ARTC NETWORKThe ARTC Hunter Valley Network consists of more than 1,000 kilometres of track, extending to Parkes via Dubbo in the Central West of NSW to North Star in the far north of the state. In 2016 the Hunter Valley network hauled around 37 billion gross tonne kilometres, which is equivalent to 132,000 B Triple movements.
The ARTC network has ample capacity for new freight. For example, it offers grain growers from Moree to Newcastle the opportunity to double or triple payloads.
The ARTC network can run heavier, longer grain trains than ever before: • Grain trains: 1,200-1,350m or 70+ wagons long.• Coal trains: 1,800m or 90+ wagons long.
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The Port of Newcastle has direct access to national heavy vehicle routes. All berths within the Port are B Double accessible.
2.2.5 CASE STUDY: COST SAVINGS FOR NSW FARMERS
The Port of Newcastle welcomed the largest, continuously tipped export grain train in Australia’s history in December 2015.
The 1.3 kilometre long train demonstrated the massive opportunity for grain producers to save transport costs by railing their freight to the Port of Newcastle.
In announcing the trial, the Hon. Warren Truss said:
“The size of this train more than doubles the payload capacity of the standard grain train that current runs through the Hunter Valley Network.
“In simple terms, the increase in payload means at least $5 to $10 a tonne reduction in hard costs for the grower – a massive saving.”
The train was loaded with more than 5,000 tonnes of wheat from a collection of North West growers at Louis Dreyfus facilities in Moree and Narrabri. The cargo was then railed to Newcastle Agri Terminal at the Port of Newcastle for export to Southeast Asia.
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“In simple terms, the increase in payload means at least $5 to $10 a tonne reduction in hard costs for the
grower – a massive saving.”THE HON. WARREN TRUSS
3. RESPONSE TO THE DRAFT FUTURE TRANSPORT STRATEGY
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Port of Newcastle agrees that ‘bold, new ideas and approaches’ will be needed in meeting the State’s freight task which will see the current metropolitan freight task double over the next 40 years.
The current Draft Future Transport Strategy (the Plan) does not acknowledge the capacity or value of the Port of Newcastle and its road and rail supply chains to New South Wales exporters and importers. To deliver a strategy that positions New South Wales exporters to compete internationally and benefit from the growing Asian market, the Port of Newcastle needs to be duly considered.
‘The more efficient the transport network, the better our economy performs, allowing new businesses to reach new markets, attracting new investment and catalysing new job and training opportunities for our people. By contrast, congestion, poor planning decisions and network inefficiency increase transaction costs, constrain growth and stifle economic development and labour mobility’. P12Port of Newcastle supports the goal of creating a more efficient transport network, recognising that this improves the global competitiveness of Australian producers including farmers. Incorporating the Port of Newcastle and its road and rail supply chain in the Future Transport Strategy will contribute to a more efficient state-wide supply chain.
The state will benefit from its access to three Global Gateway Cities: Greater Sydney, the Australian Capital City of Canberra and the growing city of Greater Newcastle. Improved transport will broaden the catchment around each of these Global Gateway Cities, improving access to major service precincts, advanced industries and international infrastructure for the purposes of travel and trade. P21The City of Newcastle is recognised as a Global Gateway City, reflecting its metropolitan city scale (the only metropolis outside of Sydney), its growing status as a centre for business, technology and services leading health and education precincts and international gateways for trade and travel in the Port of Newcastle and Newcastle Airport.
However, the Plan (Figure 9, Page 21) does not recognise the actual catchment area of the Port of Newcastle which extends out to Parkes, Dubbo, Tamworth, Armidale, Narromine and Walgett, or the significant capacity that exists within the Port of
Newcastle and its road and rail supply chains.
If this was taken into account it would provide alternate solutions to the east-west connection issues that are identified in the Future Transport Plan.
‘NSW’s freight networks will need rapid innovation and development to support import and export markets and meet growing customer demands. By 2056 the state will be served by two high performing container ports, with Port Botany and Port Kembla servicing our growing population centres.’ P23The Plan does not take a state-wide view as it does not contemplate the Port of Newcastle’s role in the State’s current and future container freight task. The extensive capacity within the Port of Newcastle and its road and rail supply chains offers considerable value to the State and New South Wales producers. Having another option, complementary to Port Botany, would help reduce congestion in metropolitan areas.
It would alleviate the need for some of the substantial and expensive infrastructure projects that the Plan has identified are required to facilitate containers at Port Kembla.
The Plan notes that freight customers “rely on transport to create economic value” (P33). An additional container terminal at Newcastle would improve competition throughout the supply chain, generating cost savings and efficiencies for exporters and importers.
‘Maximise the long term capacity and performance of the state’s three ports, expand intermodal rail capacity in Western Sydney, and improve east-west connections to support the regional export task’. P38As mentioned above, the Draft Future Transport Strategy does not reflect the actual capacity of the Port of Newcastle or its road and rail supply chains.
The state’s strategy to improve east-west connectivity needs to include the Parkes – Dubbo – Muswellbrook – Newcastle rail connection and the Newell / Golden Highway to Newcastle corridor as an alternative to the Blue Mountains crossing.
The NSW Government’s Central West and Orana Regional Plan 2036, published in 2017, notes that ‘The Golden Highway offers an alternative connection
3. RESPONSE TO THE DRAFT FUTURE TRANSPORT STRATEGY (CONTINUED)
11
for freight transport to the Port of Newcastle’. (P54)
‘Government sets the right environment to get the best from a growing market…. In some instances, the role of government will be to get out of the way and allow the market to deliver services. This may be the case where demand for services is high or where the private sector is better equipped to meet customers’ needs. Its aligns with the NSW Government’s position on regulatory frameworks to ensure unnecessary restrictions on competition are removed unless the community benefits on the restriction outweigh the costs and objectives of the regulation.’ P64 The three NSW ports are now privately operated (the Port of Newcastle was leased to Port of Newcastle Operations Pty Ltd in 2014 and Port Botany and Port Kembla were leased to NSW Ports in 2013) and compete for trade within NSW and with the Port of Brisbane.
In an environment where commercial owners are seeking to maximise the potential of each port, there is an opportunity for NSW transport and freight strategies to take a broader view of the State’s ports and how their combined capacity might be leveraged to increase competition and efficiency for NSW exporters and importers, maximise return on government investment, and position New South Wales to retain trade that could otherwise be lost to Queensland (the Port of Brisbane) or Victoria (the Port of Melbourne) when the Inland Rail is complete.
Development of the Future Transport Plan offers the opportunity to re-examine road and rail freight infrastructure plans which were developed prior to the lease of the state’s ports and can be updated to reflect future market realities not apparent in 2013-14.
‘Building our way out of congestion is not the only solution – network optimisation through technology and more responsive service can help tackle congestion more flexibly in the short term’. P69Applying this principle to planning for freight specific infrastructure will result in network optimisation being achieved through smaller enabling projects.
‘Planning for Regional NSW over the next 40 years will be delivered under a “hub and spoke” network model. This model will connect regional towns and
villages to their nearest regional centre, providing services and east of access to other destinations.’ P76There is a need to also consider connectivity between the three Global Gateway Cities, especially between Newcastle and Sydney. The importance of the Newcastle-Sydney connection is recognised by the NSW Government in its Hunter Regional Plan 2036.
‘Road and rail network improvement and development to serve Global Gateways in Newcastle and Port Kembla will be linked to anticipated freight growth and the need for an overflow port once Port Botany reaches capacity. On a range of scenarios, Future Transport expects this will occur between the early 2030s and mid 2040s, depending on rates of trade growth and the productivity of the Port Botany interface and supply chains’. P85The Port of Newcastle has huge capacity to accommodate the continued growth of coal alongside the growth of existing and new trades, including container freight. It is not constrained.
A container terminal at the Port of Newcastle would provide a complementary option to Port Botany, allowing New South Wales exporters to choose the most competitive supply chain for their cargo. It would also help deliver the overflow solution for Port Botany.
NSW will need to recover more of what we spend and keep our spending efficient as we build, manage and operate the network. P96Port of Newcastle supports decision making around government investment in freight infrastructure using this principle as a guide.
4. RESPONSE TO THE DRAFT REGIONAL NSW SERVICES AND INFRASTRUCTURE PLANPort of Newcastle supports the State’s aspiration to ‘maximise the potential’ of Regional NSW.
The Port of Newcastle plays a vital role in contributing to the ongoing growth and prosperity of regional communities including the Hunter region, the New England North West, the Central West and Orana, the Central Coast. These regions are located within the Port of Newcastle’s catchment area.
For New South Wales exporters, the Port of Newcastle provides a central, cost effective and efficient gateway to international markets. For importers, it provides a convenient pathway for delivery of large machinery and materials for construction projects such as wind farms mines, and other developments.
The Port also plays an important role in the continuing growth and diversification of the Hunter region’s economy which is heavily reliant on coal mining. The NSW Government’s Hunter Regional Plan 2036 notes that the Hunter region is the ‘largest regional economy in Australia, ranking above Tasmania, the Northern Territory and the Australian Capital Territory in terms of economic output. It drives around 28 per cent of regional NSW’s total economic output and is the largest regional contributor to the State’s gross domestic product’.
‘Our aspiration for Regional NSW is to maximise its potential recognising the diversity between regions in their natural assets, strong communities, local skills and globally competitive industries’. P6Utilising the capacity that exists within the Port of Newcastle and its road and rail supply chains will maximise the delivery of jobs and investment. This is true in west and north-west NSW and offers the potential to contribute to the growth and diversification of the regional economy. As these regional economies strengthen it will help ease congestion in Sydney, providing alternative employment opportunities and affordable housing in areas like Newcastle.
A Newcastle container terminal could complement Port Botany’s facilities and provide new efficiencies and cost savings to regional exporters and importers, helping to improve their international competitiveness.
Regional NSW transport objectives include ‘A safe, secure and resilient transport system that efficiently connects our communities’, ‘A transport system that improves productivity and supports regional economies and communities’, ‘A regional transport system that is reliable, flexible, personalised and responsive to customer needs’ and ‘A transport system that is affordable and makes best use of
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The Port of Newcastle imports cargoes for developments throughout NSW including wind turbines for Glen Innes (pictured) and trains for the Sydney Metro.
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4. RESPONSE TO THE DRAFT REGIONAL NSW SERVICES AND INFRASTRUCTURE PLAN (CONTINUED)
13
available resources and assets’. P17The significant capacity and value that the Port of Newcastle and its road and rail supply chains offer in helping the State meet its regional NSW objectives warrant increased emphasis.
Objectives for the Regional Transport Plan need to more clearly reference and articulate the relationship between transport and freight. To this end, the Port of Newcastle anticipates working closely with the government and its agencies after the release of the Draft Freight and Ports Strategy.
The Plan identifies significant state investment in new freight lines or upgrades relating to Port Botany and Port Kembla over the next 20+ years. P23-29The Port of Newcastle and its existing national road and rail supply chains have capacity to accommodate growth in trade far in excess of that anticipated in the Plan. Incorporating the Port of Newcastle in the state’s container freight growth plan could reduce the level of Government investment required. The cost savings could be in excess of $1 billion.
The Plan references the construction of the Inland Rail and upgrades to the Main West Line to Parkes to support freight (Inland Rail) in the 0-10 year timeframe and bridge upgrades to allow double stacking on Inland Rail. P25-27.Port of Newcastle supports road and rail improvements which will improve efficiency and cost savings for New South Wales exporters and importers. However, some of the investment initiatives identified could be offset by existing infrastructure and capacity such as those within the Port of Newcastle’s rail supply chain.
For example, containers could be railed from Parkes to Newcastle rather than relying exclusively on the Parkes to Botany route. The Dubbo to Newcastle section of the ARTC network has the lowest ruling grade (1:50) which means more wagons could be hauled and significant savings in terms of capital (upgrades of other lines not required) and transport costs (to exporters).
The Plan references ‘More efficient Illawarra escarpment crossing for freight’ and ‘Investment in the Maldon to Dombarton Freight Line’ as ‘initiatives
for investigation for potential commitment (10-20 years) subject to business case development’. P27As the Plan has not considered the capacity that exists within the Port of Newcastle or its existing road and rail supply chains for handling container freight, the list of initiatives needs further consideration. The Port of Newcastle has a greater role to play in New South Wales freight (including containers) than the draft strategy outlines. This would deliver greater value for the State and for New South Wales exporters and importers.
Linking the inland and coastal areas to cross the Great Dividing Range (Great Western Highway, passing loops and signalling solutions on Main Western Line) to facilitate movement between centres and regions and to cater for growing freight task. P47. The Parkes–Dubbo–Newcastle rail option needs to be explored as an alternate to investment in the Main Western Line, as outlined above.
‘Greater Newcastle will serve the Hunter, New England and mid North Coast catchments’. P52As mentioned above, the Port of Newcastle’s catchment area is much broader than these catchments.
‘In addition to the three Cities, by 2056 the Greater Sydney Metropolitan area will encompass the Satellite Cities of Gosford and Wollongong. These existing Regional Cities will evolve to strengthen critical linkages to jobs and services within Greater Sydney, due to their proximity and improve road and rail connections.’ P53 The Port of Newcastle also supports Sydney’s growth. E.g. The Port of Newcastle imported railway steel, tunnel boring machinery and rail carriages for the $8.3 billion Sydney Metro Northwest Rail Project. It provides a complementary option to Port Botany and Port Kembla in offering access to Sydney from the north.
‘It is vital that air, road, rail and port access adapts to the changing demands of regional businesses and its population. Future Transport will work with the Department of Premier and Cabinet’s new dedicated division, Regional NSW and its Centre for Economic and Regional Development to understand
4. RESPONSE TO THE DRAFT REGIONAL NSW SERVICES AND INFRASTRUCTURE PLAN (CONTINUED)
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the connectivity needs of the key industry sectors in Regional NSW now and into the future’. P59The Port of Newcastle is a significant contributor to the likely realization of the goals identified in the NSW Government’s Hunter Regional Plan 2036. The Port of Newcastle welcomes the opportunity to be further involved in finalising the NSW Government’s Future Transport Strategy 2056. Port of Newcastle would also welcome engagement with the new Regional NSW Division and the Centre for Economic and Regional Development.
‘The north-south freight task in 2056 will be 246mt pa and generally provides direct, efficient and with management will provide for future freight needs. The east-west freight task will be 208mt pa and generally limited by physical constraints and network restrictions’. P64This needs to be reconsidered in light of the comments above.
‘Access to the trade gateways of Port of Newcastle and Port Kembla from inland NSW will continue to be important for the next 40 years with the movement of coal dominating the rail transport task’. P65There is ample capacity within the ARTC Network for rail to be used for bulk transport of grains, minerals and containerised goods from inland NSW to the Port of Newcastle.
‘As Greater Sydney grows to a city of 8 million people by 2056, regional passengers and freight operators will look to more efficient ways to move to alternate global gateways, be they in NSW or interstate, to avoid the complex Sydney transport network’. P67The Port of Newcastle’s capacity and the huge capacity in its road and rail supply chains provides a solution to some of the congestion issues that the Draft Future Transport Strategy identifies.
‘Global Gateways such as Newcastle with its trade port, new cruise terminal and airport, will play a bigger role in serving regional catchments beyond the Hunter to the north, north-west and west. Investments in such infrastructure as the Hunter Expressway, Pacific Highway, New England Highway and Golden Highway will facilitate safer and more efficient connections for passenger and freight
movement from Tamworth, Armidale, Dubbo, Coffs Harbour and Port Macquarie’. P67The Port of Newcastle’s catchment area extends west to Parkes and north to Moree, taking in Dubbo, Tamworth, Armidale, Narromine and Walgett. Port of Newcastle welcomes further investment in national road networks to ensure that they can continue to safely and efficient support the growing freight task and growing populations.
‘As the population of Regional NSW keeps moving towards the coast and primary industry continues to grow in the inland regions, safer and more efficient connections for freight and passenger movements are required’ …. ‘The Illawarra escarpment is one of NSW’s most dramatic topographic features which will require significant investment to improve the connections from Wollongong to both the Western City and the South East and Tablelands and maximise access to the Port’. P73Port Kembla is listed in the Draft Future Transport Plans as the state’s second container terminal, yet the plans also note that significant government investment would be required to facilitate this including road and rail infrastructure. Land reclamation works would also be required.
The Port of Newcastle has existing road and rail connections with significant capacity for freight growth and is well placed to be part of the NSW container freight solution, complementing growth at Port Botany.
Between use of the Hunter Expressway linking with the Golden Highway and New England Highways will support the resource rich regions of the Hunter, Central West and Orana and New England and North West. Upgrading of these connections also supports and reinforced the global gateway status of Greater Newcastle through access to its port and airport. The development of the Golden Highway will provide an alternative route from Central West and Orana around Greater Sydney. P73The development of a container terminal at the end of the Golden Highway / Hunter Expressway i.e. at the Port of Newcastle will provide further efficiencies and avoid the bottleneck of Sydney. The same benefit can be replicated on rail via Parkes – Dubbo – Newcastle.
4. RESPONSE TO THE DRAFT REGIONAL NSW SERVICES AND INFRASTRUCTURE PLAN (CONTINUED)
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Newcastle – Muswellbrook needs to be identified as a key connection across the Great Divining Range for both road (Golden Highway) and rail (Hunter Valley Network).
‘Duplicating the freight line in to Port Botany to deal with expected growth – this will improve freight connections to the Central West and Orana’. P91Access between the Central West and Newcastle provides an alternative, as mentioned above.
‘Freight growth will place increasing pressure on access to the Port of Newcastle and Port Kembla’. P91‘Further growth in export coal volumes from the Hunter will place growing pressure on the port and increase access challenges’ P92The Port of Newcastle is not constrained. Its shipping channel can accommodate more than double its existing trade (i.e. more than 10,000 ship movements per annum). The existing road and rail networks that service the Port of Newcastle have untapped and latent capacity.
‘There are existing challenges accessing Port Kembla, including interaction with the metropolitan network for volumes from Central West and Orana, sharing of the Illawarra line with passenger trains, as well as the limitations of Moss-Vale to Unanderra line. Forecast volume increases, combined with future container overflow from Port Botany demand will place further pressure on the port and access and require better connectivity and additional linkages’. (P92)‘Opportunities to improve port accessibility: Completion of the Maldon-Dombarton line to add rail freight capacity in and out of Port Kembla. East-west connections from Inland Rail to the Ports to capitalise on Inland Rail. P94. The Plan notes the challenges in expanding Port Kembla for container growth and the significant investment required. An alternative would be to include the Port of Newcastle as part of the State’s container freight solution and complementary facility to Port Botany.
The Port of Newcastle has connections to the proposed Inland Rail route via existing rail networks. The first stage of the Inland Rail will intersect the east-west corridor at Parkes, improving the
existing connection to the port directly with regional catchments in New South Wales without the need to use congested capital city rail networks.
Select investments will be needed to ensure strategic corridors can serve the growing freight task and improved network productivity. P93Agree but this needs to be done on a State-wide basis to ensure state-wide productivity, not a Sydney-centric or specific regional focus.
Select investments in the non-mail line rail network to improve rail freight productivity. Parts of the broader rail network (beyond main line) have constraints – axle weight capacity, track speeds, siding lengths. However, upgrades to improve productivity need to be pursued selectively given the wide cost-benefit ration. The Fixing Country Rail program can continue to address improvements at a micro level (e.g. sidings, passing loops) However, significant improvements to the CRN network must be weighed in light of their strategic viability over time – particularly give changing network dynamics due to rationalisation in the grain supply chain. P93Agreed – but this principle should be applied to all investment spending on improvements including large spends on new network infrastructure. It should be noted that the Country Rail Network is and can be utilised for rail freight other than just grain, and that micro improvements or small enabling projects can provide wholescale benefit in terms of cost savings and efficacious for a broader range of commodities.
Opportunities to improve port accessibility east-west connections from Inland Rail to the Ports to capitalise on Inland Rail. P94Crossing of the Great Divide is a significant engineering challenge for the freight on both road and rail. Only considering the Great Western Highway / Main Western Line is a simplistic solution.The Port of Newcastle must be considered in this scenario with access via Parkes – Dubbo – Muswellbrook – Newcastle and Golden Highway to the Port of Newcastle. These are less challenging geographic routes and with existing infrastructure.
‘Protect freight through movements, reinforcing key links to the Port and Airport serving our Global
Gateway City’. P107Port of Newcastle supports the need to protect freight corridors. Industrial Drive and improvements to the M1 – Pacific Highway Raymond Terrace is a critical port connection to the National Highway that need to be identified as an inter-regional link, prioritised and protected.
This is supported by the Hunter Regional Plan which identifies that managing the land uses surrounding key transport corridors is important to maintain efficiencies in the network, particularly the national freight network, and to allow for future growth.
‘The Outer Sydney Orbital will provide a regional road and rail corridor to connect the Western City and Central Coast’. P112This also benefits connectivity between Newcastle
and Western Sydney via the movement of passenger and freight. This should be acknowledged and promoted.
‘Freight transport connections between the Port Botany and Port Kembla are important. Port Kembla will act as a progressive overflow facility for Port Botany once its operational capacity has been reached, expected to occur after 2040’. P114The cost versus benefit needs to be articulated in light of Newcastle as a more cost effective alternate location.
4. RESPONSE TO THE DRAFT REGIONAL NSW SERVICES AND INFRASTRUCTURE PLAN (CONTINUED)
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5. RESPONSE TO THE GREATER SYDNEY DRAFT SERVICES AND INFRASTRUCTURE PLAN
The capacity that exists at the Port of Newcastle and within its existing road and rail supply chains can help resolve some of the challenges identified in the Draft Future Transport Strategy.
For example, a Newcastle container terminal would complement container facilities at Port Botany with minimal government investment.
This would generate significant cost savings for government and consumers.
The Northern Freight Corridor Program Stage 2 would provide additional rail paths for freight from Newcastle into Western Sydney and allow for separation of freight and passengers. This initiative warrants investigation and validation
against proposals for investment in entirely new infrastructure.
Synergies between the Port of Newcastle and Sydney could also be explored, particularly the north and west.
The Plan notes: • The importance of delivering safe and efficient transport to support the ‘productivity, liveability and sustainability’ of Sydney. P6• Initiatives for investigation around increasing road and rail capacity around Port Botany. P20• Initiatives for investigation to support a container terminal development at Port Kembla. P21
6. RESPONSE TO THE DRAFT TOURISM AND TRANSPORT PLAN
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As acknowledged by the Draft Future Transport Plan, seamless transport connections between airports and cruise ship terminals is essential to growing the visitor economy. The Australian Cruise Association estimates that cruise shipping currently injects about $11 million per annum to the Hunter region’s economy.
The NSW Government’s $12.7 million investment in the Newcastle Cruise Terminal has created a second major cruise port in New South Wales. The Terminal will be constructed throughout 2018.
From early 2019 the Port of Newcastle will have the terminal facility and infrastructure to complement Sydney and play a role in easing berth congestion in the short-to-medium term. This will help to retain cruise ship tourism and the associated economic benefit in NSW which may otherwise be lost to other states.
The Port’s close proximity to Newcastle Airport provides natural synergies for home porting.The improved public transport network and connectivity with the Newcastle City Centre has benefits for the visitor economy. In this regard, inclusion of a ‘special events’ ferry wharf at Dyke Point, Carrington, should be investigated. The NSW Government’s $12.7 million investment in the Newcastle Cruise Terminal should be capitalised on
with public transport options to support this tourism opportunity.
The Hunter Regional Plan 2036 identifies the investment in infrastructure to expand the tourism industry, including connections to tourism gateways and attractions (Action 9.1 Implementation Plan) as an important part of growing tourism in the region.
Newcastle Airport has an annual throughput of 1.25 million passengers. The Airport services nine direct destinations along the eastern seaboard and connects the region to the rest of Australia and internationally through hub airports Brisbane, Gold Coast and Melbourne. It also international capability.
The Newcastle Cruise Terminal is due for completion in late 2018.
Qantas Freight operates an on-site freight service on all domestic flights from Newcastle Airport with cargo being transported via their aircraft belly hold. Virgin Australia also handles minor belly hold cargo at the airport. No off-site freight forwarders and integrators operate from the Airport at present.
Newcastle Airport’s connections.
The Airport is a 25 minute drive from the Port of Newcastle’s cruise ship berth.
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The Port of Newcastle welcomes about 22,000 cruise passengers to the Hunter region each year. It has the capacity to accommodate large vessels that carry about 3,900 passengers.
6. RESPONSE TO THE DRAFT TOURISM AND TRANSPORT PLAN (CONTINUED)
7. CONCLUSIONA state-wide approach is needed to meet New South Wales’ future freight task and to ensure the competitiveness of the state’s producers and importers.
The Port of Newcastle has the capacity to greatly contribute to the future economic growth throughout regional New South Wales.
Greater consideration of the Port of Newcastle as a global city and export/import centre by transport planners could alleviate the need for other costly infrastructure spending e.g. east-west connections over the Blue Mountains. As the Draft Future Transport Strategy recognises, ‘the more efficient the transport network, the better our economy performs, allowing businesses to reach new markets, attracting new investment, and catalysing new job and training opportunities for our people’ (P12).
The Port of Newcastle’s Mayfield Site can accommodate a 2 million TEU container terminal. Including the Port of Newcastle in the State’s container freight plan would complement facilities at Port Botany and offer NSW exporters the choice of the most efficient and cost effective supply chain for their cargo.
The Port of Newcastle presents a competitive advantage to the State’s economy and it will be the first port to be connected to the Inland Rail, via the ARTC’s Hunter Valley Network.
Utilising the significant capacity that exists within the Port of Newcastle and its supply chain would ensure that NSW trade is retained within the State. Otherwise, the trade could be lost to Queensland or Victoria when the Inland Rail is complete.
Port of Newcastle is committed to working with the NSW Government to grow and diversify the New South Wales economy and looks forward to further engagement.
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The Port of Newcastle’s Mayfield Site can accommodate a 2 million TEU container terminal. The site has direct access to national rail and road networks and the shipping channel.
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Utilising the significant capacity that exists within the Port of Newcastle and its supply chain would ensure that NSW trade is retained within the State. Otherwise, the trade could be lost to Queensland or Victoria when the Inland Rail is complete.
The Hunter Regional Plan 2036http://www.planning.nsw.gov.au/~/media/Files/DPE/Plans-and-policies/hunter-region-al-plan-2036-2016-10-18.ashx
The Central West and Orana Regional Plan 2036http://www.planning.nsw.gov.au/Plans-for-your-area/Regional-Plans/~/media/9C3DD0CC-6D1F4E27A7A6B76AB47092C5.ashx The New England North West Regional Planhttp://www.planning.nsw.gov.au/~/media/Files/DPE/Plans-and-policies/new-england-north-west-final-regional-plan-2017-09.ashx
8. REFERENCES
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ATTACHMENT A - PORT OF NEWCASTLE TRADE 2016-17
COMMODITY EXPORTS MASS TONNES TEUsTRADE VALUE ($ MILLION)
Aluminium 55,778 0 $139Ammonia 93,459 33 $64Ammonium Nitrate 2,930 125 $1Coal 162,835,456 0 $19,011Concentrates 412,618 0 $641General Cargo 95,506 1,464 $81
Grinding Media 11,144 529 $11
Machinery, Project Cargo & Vehicles 18,621 936 $186Meals & Grains 318,387 242 $54Pitch & Tar Products 98,190 0 $62Silica Sand 47,424 0 $0Steel 108,221 280 $23Timber 310 0 $0Wheat 1,626,165 0 $339
TOTAL EXPORTS 165,724,209 3,609 $20,612
COMMODITY IMPORTS MASS TONNES TEUsTRADE VALUE ($ MILLION)
Alumina 1,176,294 0 $303Ammonia 35,106 0 $24Ammonium Nitrate 26,152 0 $8Cement 218,945 2 $16Fertiliser 612,461 0 $205Fuels 1,720,447 0 $965General Cargo 65,005 4,529 $110Machinery, Project Cargo & Vehicles 37,134 191 $371Magnetite 84,746 0 $25Meals & Grains 147,308 0 $68Petroleum Coke 216,534 0 $80Pitch & Tar Products 162,294 0 $128Steel 189,512 4 $41Timber 21,414 41 $1
TOTAL IMPORTS 4,713,352 4,767 $2,347
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ATTACHMENT B - PORT OF NEWCASTLE MAP
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