Legislation to change how Sydney Ports operates

New legislation enacted by the NSW Parliament on 1 December 2008 will require Sydney Ports to enhance its role as a leader in the process that determines how the port operates and play a bigger role in managing landside logistics.

The Ports and Maritime Administration Amendment (Port Competition and Co-ordination) Bill 2008 was introduced to the Legislative Assembly by Ports & Waterways Minister Joe Tripodi in September 2008.

The reforms contained in the Bill reflect the recommendations of two major public reviews conducted into the regulation and operation of NSW ports – The PriceWaterhouseCoopers review on behalf of Government into Port Regulation and Competition and the IPART review of Port Botany’s links with inland transport.

Key themes from IPART’s review included the need for greater transparency in performance reporting and access arrangements; performance standards and systems to generate efficiency; and measures to drive 24/7 operation at the port to reduce peak hour congestion.

Sydney Ports’ current objectives – to operate as a successful commercial enterprise, promote trade, manage port facilities and ensure port safety functions are carried out – will be expanded to include a leadership role in facilitating improvements in the supply chain.

The purpose of the Bill is to amend the Ports and Maritime Administration Act 1995 to broaden the principal objective of Port Corporations. This will include promoting and facilitating a competitive commercial environment in port operations and improving productivity and efficiency in ports and port related supply chains.

The Bill provides the power for new regulations to be created. Regulations to promote competition and productivity might include operators to provide information pertaining to performance and efficiency and capital investment; setting mandatory standards for performance, access, handling capacity and co-ordination of delivery services; reporting on compliance with standards set; introducing incentives to comply with and penalties for failure to comply with standards; and/or introducing supply chain charges.

This Bill heralds the start of a new era in modern port management and moves beyond the landlord model. With these new objectives and functions, Sydney Ports will be expected to help align the supply chain to achieve an overall improvement in landside performance and efficiency.