Industry briefing on Port Botany Landside Improvement Strategy

NSW is on the cusp of a revolution in port logistics with industry having a unique opportunity to reshape the way the road and rail logistics operates in Port Botany.

This was the clear message presented to members of the trade and transport industries at a Sydney Ports Corporation briefing session on the Corporation’s Port Botany Landside Improvement Strategy, held in November.

Sydney Ports COO, Paul Weedon, told the crowd of more than 120 industry representatives, the Corporation would take an active role in leading industry through the reform process.

He said this would be the first time in Australia a port management organisation had moved away from the landlord model to become actively engaged in the logistics chain.

Mr Weedon said three NSW Government reports into operations at Port Botany, including the IPART Report – Reforming Port Botany’s links with Inland Transport, recommended that Sydney Ports take a leadership role in improving landside infrastructure and operations of landside logistics chains.

He said as a result, Sydney Ports had launched a two-part approach to landside reform which focused on a new contract structure with stevedores and improvement in the ports’ logistics chains.

“With trade through Sydney Ports forecast to double over the next 10 years, it is vital that all parts of the logistics chain collaborate to address current issues and to create viable actions for coping with future growth,” Mr Weedon said. “We have a window of opportunity to make the essential changes and the performance improvements we need to cope with growth in our sector.”

The briefing session was told that part of the reform process included changing the nature of Sydney Ports’ relationship with stevedores with the introduction of a new lease model for stevedores where 50% of the rent is determined by achievements against three Key Performance Indicators - crane lift rates, and how well the stevedores manage both the road and rail interface.

The logistics strategy will be driven through two task forces, one looking at rail and the other at road. The groups include representatives from Sydney Ports, industry and other relevant bodies and have been tasked with implementing changes which will bring about obvious improvements to logistics operations at the port.

“We have engaged industry so we can find solutions through a collaborative approach,” Mr Weedon said.

The taskforces would focus on improving transparency and providing industry with the opportunity to develop, agree and implement solutions to the current issues including performance standards and peak period pricing.

Part of the work of the taskforces would include establishing real-time on-line reporting by stevedores to improve transparency around waiting times, slot allocation and take-up, which would help other operators manage their businesses more effectively.
Sydney Ports would provide assistance and leadership in defining the improvement tasks.  Industry would be expected to respond and implement them in consultation with Sydney Ports.

Mr Weedon said that if after an appropriate evaluation time Sydney Ports found coordination and efficiency had not improved sufficiently, the NSW Government could intervene to obtain the necessary performance improvements.

This could include Sydney Ports taking on an increased role in controlling levers in port supply chains, including legislating changes to the Vehicle Book System.

Mr Weedon said that Sydney Ports would be working towards a goal of on-going collaboration and continuous improvement.

“Quality outcomes is the ultimate test of success of this strategy so within an environment of industry engagement we want to move business forward in a positive way that will have real and lasting benefits for the whole industry,” he said.

The briefing session was the first of regular industry briefing events planned by Sydney Ports.

If you have any questions about the Port Botany Landside Improvement Strategy, email landsideimprovement@sydneyports.com.au

To hear a recording of the briefing session or for more information about the Port Botany Landside Improvement Strategy visit our website.