Recently, the authorities in New South Wales, Australia, have launched a draft for a new strategy regarding investments in the freight transport sector and in ports, identifying development and traffic efficiency priorities.
Estimates show a significant growth of the freight volumes on the network and in ports, putting pressure on existing facilities and infrastructure. Therefore, to effectively approach the increase of cargo volumes, it will be necessary to boost transport network capacity to support new infrastructure projects while developing intermodal terminals and ports. The authorities are aware of the importance of setting a strategy due to the results with the implementation of the first strategy (adopted in 2013), the recently published strategy being the country’s second strategy dedicated to the freight and logistics sector. If funds for 10 pilot rail projects have been allocated through the first strategy (as part of the Fixing Country Rail programme), as well as funds to eliminate railway constraints, to upgrade the existing infrastructure (road and railway), to increase the freight volumes and to set the Cargo Movement Coordination Centre to make traffic to Port of Botany more efficient, the latest strategy proposes plans and investments to approach the opportunities and challenges imposed by a cargo volume that will double by 2031.
New South Wales has recently launched the draft “Freight and Ports Plan” which includes a series of actions and projects to be implemented by the government and the industry to make freight transport efficient and direct flows to sustainable and performing transport.
According to the Roads, Maritime and Freight Minister Melinda Pavey, the industry plays a vital role in the transport of freight with a total cost of AUD 200 billion (USD 150.65 billion) a year. For the NSW economy, freight transport has a contribution of AUD 66 billion (USD 49.7 billion) a year or 12% of the gross national product (GNP). Authorities estimate that by 2031, cargo volumes will double, including in Greater Sydney and will increase by 25% in Regional NSW. To meet future needs of freight mobility, it is necessary to increase infrastructure capacity and to implement measures to facilitate traffic and to make it efficient.
NSW’s transport and logistics networks are very important for ensuring the state’s economic growth and the three large commercial ports, Newcastle, Port Kembla and Port Botany are trying to efficiently manage their increasing exports and imports which requires faster and more efficient services, easy and improved access to rail and road infrastructures inside the state and between different states. To meet objectives, the authorities committed to invest in rail and road infrastructure to improve access, facilitate new technologies to make the network more efficient, to reform rail, road and maritime regulations and to harmonise the cross-border regulation conditions, as well as invest in managing the infrastructure to separate freight traffic from passenger traffic on congested corridors.
The new plan provides guidelines for planning investments and providing the industry with guidelines on investment initiatives, reforms and other plans to encourage the industry to collaborate, elaborate and implement projects aimed to develop freight transport. The significant investments announced by the government, the Australian Government’s commitment in the construction of Inland Rail, Western Sydney Airport, the establishment of national regulations on rail and heavy vehicles, as well as other programmes will have a direct influence on freight transport.
Greater Sydney freight sector is dominated by production which, last year, accounted for 57% of the cargo in the area, almost 138 million tonnes of freight being shipped every year. By 2056, freight volumes will increase by 73%, reaching 230 million tonnes. In the same region, the food and beverage industry generated a volume of 23.5 million tonnes or 17.7% of freight. The construction materials sector includes higher traffic flows. Last year, the region consumed 41 million tonnes, requiring 5,500 journeys a day in the transport network. Estimates also include a freight volume growth which also means higher traffic to provide transport services.
For Regional NSW, coal dominates the freight market with 90% of total cargo as demands for quality Hunter Valley coal make for the most significant share of coal’s share. For the next four decades, in regional NSW coal will account for 79% of total growth of cargo volumes. The volume of grains shipped by rail is also expected to increase by 1.1% a year on the long term, accounting for 10% of the regional cargo growth over the next four decades. 73% of this growth will be registered in the national market.
As almost all freight segments will register growth, transport services will also have to meet new requirements. This means new infrastructure, especially on the “last mile” delivery segment. Also, the extension of services will require much more flexible options, putting pressure on cost structures and the competitiveness of transport operators. In the rail sector, the share of container transport increased from 14% to 21% and the growth trend will continue according to estimates. At present, rail freight transport is constrained to big corridors. These corridors are also used for passenger transport services, especially in the suburban and intercity areas. This compromises the availability of the network to meet customers’ demands reducing the capacity to generate increased frequencies for passenger traffic at peak hours or to increase the capacity of freight traffic to meet long-term demand.
To increase the rail traffic share, Inland Rail is an opportunity to create three regional freight transfers connecting NSW’s commercial ports, a priority being the optimisation of traffic with efficient connections to the three large ports. The construction of the 1,700-km railway (a project which requires the modernisation of existing sections and the construction of new sections) will enable the operation of longer and heavier trains. The proposed project will connect Tottenham (in Victoria) to Acacia Ridge (in Queensland), through New South Wales. The Federal Government committed to allocate an investment of AUD 8.4 billion (USD 6.3 billion). According to plans, the railway will be operational as of 2025.
Intermodal terminals, to increase rail share
To face requirements, using the “Freight and Ports Plan”, the authorities commit to improve access to the network and to grant dedicated priority to freight traffic, on selected sections. Thus, the road and rail networks will be extended to improve connectivity, especially to boost rail capacity. Opportunities to deliver freight and passenger dedicated networks will be sought to reduce the sharing of congested rail corridors that reduce the possibility of providing better frequencies.
The actual separation of the rail network is an opportunity to ensure an improved capacity of corridors which include intermodal terminals, connections with regional areas and international gateways.
Intermodal terminals will permit the development and growth of rail freight share with a significant role in container and bulk freight transport, facilitating the productivity and efficiency of the freight transport network. Many intermodal terminals provide integrated services to meet the requirements of road and railway operators and support long-term growth. For example, Enfield logistic and intermodal centre in Sydney includes an intermodal terminal, freight shipments, facilities for import and export, as well as distribution, while the storage system is under development. In Sydney and Newcastle, these intermodal facilities are operated by freight forwarders and operators in strategic locations, while in regional areas, terminals developed around rail infrastructure and new intermodal terminals were built (greenfield sites).
Currently, the authorities identified 45 locations for intermodal terminals in NSW, 32 of them operational, one under development, nine proposed projects and three non-operational. Also, there are four operational terminals in border locations (for example, Goondiwindi, at the border with Queensland, or Wodonga, at the border with Victoria), which attract freight from NSW. Moreover, several proposals for frontier terminals are elaborated in Fyshwick (at the border with the Australian Capital Territory) and a non-operational terminal in Kingston (at the same border with the Australian Capital Territory).
In Greater Sydney, Newcastle and Illawarra regions, there are 18 locations of intermodal terminals of which 14 are operational, two are in the construction phase and one is non-operational. Moorebank Logistics Park is being built in the west of Sydney to provide integrated services, including import-export terminal and interstate terminal services, rail connection services to Southern Sydney Freight Line, which, in turn, provide freight dedicated rail access to Port Botany.
Inland Rail project will encourage the development of terminals in regional areas on railway alignment, ensuring the optimisation and efficiency of freight traffic and connections to NSW ports, thus developing a network of transport hubs operated by the private sector.
The role of terminals is to reduce capacity constraints in the transport and logistics network ensuring efficient connections to ports. For NSW, Botany, Newcastle and Kembla ports are the most important. Next to the other ports, they offer connections all over the logistics chain between land and maritime transport efficiently delivering trade. Port Botany’s contribution to the gross national product is AUD 3.2 million, being NSW’s largest container port, while Port of Newcastle is the world’s biggest port regarding coal exports. Port Kembla has a contribution of AUD 720 million (USD 542 million) to the gross national product, it is the country’s biggest port for the import of vehicles and an important centre of grains export.
In the financial year 2016-2017, container traffic in the Port of Botany increased by 4.6% (to 2.43 million TEU), while container exports increased by 13%. As rail and road access to the port faces constraints, the authorities plan to improve the capacity of the network to meet the increasing transport demands.
Starting with 2040, when Port Kembla will operate at maximum capacity, it will gradually facilitate traffic through the Port of Botany by taking over part of the cargo volumes. However, it will require a major capacity growth development to adapt to additional volumes.
Port of Newcastle, which handled 168 million tonnes in 2016, will maintain its position of main port for coal export and will continue to vary freight. There is a land of 200 hectares ready for its development, representing 25% of the port’s current surface. Road and rail connections also need improvement, especially in areas such as Central West and Orana, as well as in New England North West, to contribute to the development of the port’s activity.
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