1. 13 June 2007 Securing the lifeblood of the NSW economy Presentation to the BTRE Transport Colloquium Presentation by Greg Martin Chief Executive Sydney Ports Corporation

2. BTRE – June 2007 Introduction and Contents World Container Growth National Container Port Developments Securing Port Botany’s Growth –Port Infrastructure Improvements Port Botany Expansion Enfield and Intermodal Terminal Network Road and Rail Transport –Operational Issues Congestion Hours of operation VBS –A Third Stevedore? and Future Plans

3. BTRE – June 2007 World Container Trade World container movements now exceed 400 M teu per year Australia’s share is around 5.5 M teu per year World volume projected to grow to 672 M teu by 2011 Every trade lane in the world will exceed 7% per year growth to 2012 at least Port capacity is currently 550 M teu, hence at least 122 M teu additional capacity required by 2011 (Source – International Ports and Harbours Conference - Houston May 2007)

4. BTRE – June 2007 National Container Port Developments Brisbane – $140M on channel deepening to 15m and new berths 11 & 12 at Fisherman Islands (Hutchison announced as new port operator) Sydney – $1 billion on Port Botany Expansion including terminal operator development cost Melbourne – $800M ? for channel deepening required for post-Panamax vessels Adelaide – $45M to deepen Outer Harbour channel by 2m to 14.2m for post- Panamax vessels Fremantle – Planning is well advanced for a new container port near Kwinana with suitable road & rail links

5. BTRE – June 2007 Population Growth in Sydney

6. BTRE – June 2007 Long term containerised cargo growth 1970-2006 Sydney’s container trade growth projections

7. BTRE – June 2007 Ship size trends

8. BTRE – June 2007 Approved Port Botany Expansion (60 ha – 5 berths)

9. Artist’s impression of the expanded port Request for tender March 2007 Award major construction contract in late 2007 Major works to commence in early 2008 Stevedore procurement - 2007 and 2008 Appoint terminal operator in 2008 Complete works and commission first berths – 2011 Port Botany Expansion

10. BTRE – June 2007 Investment by Patrick terminal yard 2 new RMGs arrive at Port Botany

11. BTRE – June 2007 DPW’s rail extension at Port Botany Botany Yard P&O POTA Patrick CBFCA – March 2007

12. BTRE – June 2007 The Growing Road and Rail Task TEURailRoad 20061.5M20% - 300K teu80% - 1.2M teu 20203.0M40% - 1.2M teu60% - 1.8M teu

13. BTRE – June 2007 Rail Network BTRE – June 2007

14. Enfield Intermodal Logistics Centre Intermodal rail / road interchange - 300,000 TEU capacity Warehousing for container pack / unpack Empty container holding areas Commercial / light industrial park Ecological / community area Operational 2009/10

15. BTRE – June 2007 Road congestion Foreshore Road A congested F3

16. BTRE – June 2007 Sydney’s Trucking Percentages Trucks of total traffic6%1 truck / 17 vehicles Port trucks of total trucks5% - 8% 1 port truck /12-20 trucks Port trucks of total traffic Approx 0.5% 1 port truck / 300 veh Port trucks of total traffic - near port (Foreshore Rd) 8%1 port truck / 12 veh Source: Warren Centre – Sustainable Transport in Sustainable Cities (and SPC)

17. BTRE – June 2007

18. Operational Issues Port Capacity –Rapid trade growth –Stevedores purported capacity Hours of Operation –Mismatch of Hours –Hours per day –Day of the week

19. BTRE – June 2007 Source: NSW Sea Freight Council 2004 Mismatch of hours CBFCA – March 2007

20. BTRE – June 2007 Port Botany Container Terminals Proportion of Truck Arrivals by Hour of Day 1999-2013

21. BTRE – June 2007 Proportion of truck arrivals by day of week Port Botany container terminals

22. BTRE – June 2007 Stevedoring Issues Improved VBS and IPART Inquiry SPC has long supported a VBS which is equitable, efficient, transparent and recovers costs ACCC investigation into stevedores’ R&D procedures prevented our attempt to bring both stevedores together SPC supports NSW Government’s IPART inquiry as it will improve transparency and knowledge of system Submissions to IPART closed last week (8 June 2007)

23. BTRE – June 2007 Port Botany Logistics Taskforce Taskforce provides opportunity for the various arms of Government to be coordinated under one process IPART Inquiry already underway Possible use of Super B doubles within the Port Botany precinct under review Assists with the coordination of NSW Gov approach for Auslink 2 funding.

24. BTRE – June 2007 Stevedoring Issues Should we have a 3 rd stevedore ? Government’s position is that it would prefer a 3 rd stevedore but hasn’t yet decided whether current stevedores are to be excluded from process SPC proposes to seek EOI’s later this year A third stevedore will provide increased competition However, economies of scale will be reduced and existing operators may slow down investment in new equipment New stevedore doesn’t have to be in all major container ports Brisbane’s decision to appoint Hutchison is a significant one.

25. BTRE – June 2007 Complete Port Botany expansion Develop Enfield ILC subject to obtaining formal NSW Government planning approval and establish business model Pursue Federal and State Government agreement to develop Moorebank as an ILC Assist NSW Government to develop policy for improved road access to Port eg expand M5 and/or build M4 East Pursue Improvement of VBS Promote increased share of rail use (by carrot or stick) to 40% Increase industry hours of operation – 24/6 and ultimately 24/7 Obtain an equitable share of Auslink 2 funding Future Actions to Secure Lifeblood of NSW Economy BTRE – June 2007

26. BTRE - June 2007