Mornington Peninsula Marine Alliance

1. Mornington Peninsula Marine Alliance Contemporary Issues in Port Development An International Context Yaringa Boat Harbour 16th January 2014

2. Planning Concept • Ports are merely an interface between the surface transport and maritime modes • They are a manifestation of the need to undertake such modal transfers, rather than an identity in isolation • Ports respond to a demand: they do not create it

3. Many Port Developments start with promoting of the physical assets: • Deep water • Availability of land • Visions of what it will look like The world is full of places like this - ‘white elephant’ ports often planned on this basis

4. Three initial core issues to be addressed in port planning • Demand – where is our cargo coming from/going to? • Supply – who will carry it for us? • Access – how will the cargo get to/from the port to the point of delivery or from point of collection? Physical planning of the port infrastructure only comes after analysis of these three issues, as they will determine nature and size of the development

5. Demand • Easier to identify and project volumes in the case of bulk ports – small number of clients, demand-driven with supply response • ‘Greenfield’ container ports much more difficult due wider range of imports and exports, multi-client and presence of competition. Extension of existing terminals easy as have traffic profiling and berth occupancy 70% + • Successful container ports have to be close to major source of either supply or demand – either major conurbations that generate import demand (usually major population concentration) or major export/processing activities nearby Locational relationship between points of demand and ports is critical – cases of good ports in the wrong place

6. Supply • Bulk ports supply not a problem as access to global market – major importers/exporters tend to select the ports • Container market much more restricted with major players dominating – carriers select the ports rather than the customers (unless there is a dominant customer) • Understanding why a container carrier would use a particular port is critical. Port Authorities know about ports, but rarely understand their clients business • Competition is strong as ports often see container handling as lucrative, but generally carriers are looking at bigger ships calling at less ports to achieve the economies of scale – rates stability means carriers are having to cut unit costs

7. Access ‘A port is only as successful as it connectivity to its hinterland’ • Road access is always critical for container traffic – quality of service, connectivity to off-port CFS and ICD to lower dwell times • Rail access is critical for bulk traffic, but much less important for container traffic. Rail only economical 300 km + or for very intensive operations. Potential environmental benefits usually overstated and will usually require subsidy • Requirement for inland route mapping- what comes or goes where?

8. Need comprehensive data on all 3 initial issues to be able to identify demand & possible income. Focus then changes to infrastructure planning and costing in order to undertake feasibility study and from that a business plan • Identification of ‘pressure points’ • If containers will need an experienced operator both to ensure performance and bring supply (carriers). Port authority should be landlord not operator • Port provides infrastructure, concessionaire provides superstructure

9. Possible Issues for Development of Hastings Why do we need to develop Hastings? Have we demand? Where is it? Why would it want to route through our port? Does it support or compete with Melbourne? Is an industrial estate likely to generate traffic Have we supply? Could we attract a secondary carrier or a specific trade/traffic? Could we attract a concessionaire to bring us traffic What needs to be done to enhance access? – 4 laning of Western Port Highway – careful planning of the port/local traffic interface

10. Possible Issues for development of Hastings Rail link unlikely to be viable, but how to counter environmental pressure Min size berth 450-500 metres – 2 berths + overlap 2 gantries - 750,000 TEU capacity - Single berth capacity risks Quantification of employment and social benefits v adverse development environment issues Pressure likely on land access issues, rather than bay access Problems of retention of motivation/interest on long term project

11. Thank you for your attention