Logistical Strategy and Planning

Logistics requires an increasing coordination of transport by road, rail and sea. The importance of efficient and seamless logistics is greater than ever before. There has been an increasing level of attention on the need for suitable planning, to ensure that infrastructure and operations for the movement of freight can be managed in the future.

Key Drivers for Port Freight and Logistics

Increasing the Role of Rail

A key element in port freight and logistics planning for metropolitan Sydney is maximising the use of rail. These volumes include export products from regional NSW, and port shuttle movements of exports and imports within metropolitan Sydney. With the NSW Government and Sydney Ports having the shared objective of achieving a 40 per cent mode share for containers transported into and out of Port Botany by rail. This offers industry an alternative system that has a higher level of efficiency, competitive usage costs and lower air and noise emissions.

Managing Road Transport Movements

Extensions to the motorway network have improved accessibility between Port Botany and key distribution and industrial areas across Sydney. However since this infrastructure is shared with commuter vehicles, heavy traffic volumes are inevitable during peak periods. An increase in the volume of freight will translate into an increase in the number of trucks using the road system. While the future number of port trucks on the road will continue to represent a low proportion (between 1 and 2 per cent) when compared to total traffic, it is important that this growth can be accommodated on existing infrastructure through better traffic and operational management.

Expanding the Intermodal Network

A plan for a network of additional intermodal terminals in the central-west, south-west and west of metropolitan Sydney has been endorsed by the NSW Government to meet predicted demand. Sydney Ports is developing an Intermodal Logistics Centre at Enfield that provides an intermodal facility to cater for demand generated in central-west Sydney and would form a part of the intermodal network. The facility at Enfield received planning approval in September 2007.

Government Initiatives on Port Freight and Logistics

Infrastructure Australia

Infrastructure Australia has the primary function of providing advice to government, industry and the community in relation to the following key areas:

• Australia's current and future needs and priorities relating to nationally significant infrastructure
• Policy, pricing and regulatory issues that may impact on the utilisation of infrastructure
• Mechanisms for financing investment in infrastructure.

Metropolitan Strategy

The NSW Government released the Metropolitan Strategy in December 2005. The document provides an urban planning framework for metropolitan Sydney for the next 30 years. The transport component of the strategy includes a number of specific objectives related to freight, including:

• Expand Port Botany and preserve Sydney Harbour as a working port.
• Maximise the efficiency of freight transport and increase the proportion transported by rail.
• Develop transport plans to facilitate the relocation of vehicle importation from Glebe Island / White Bay to Port Kembla.
• Plan for the provision of sufficient freight transport capacity in key corridors.

Port Botany Logistics Taskforce

The NSW Government established the Port Botany Logistics Taskforce in November 2006 to facilitate strategic industry input, provide comprehensive advice to government on issues in the land transport logistics chain at Port Botany, including port, stevedoring, road, freight rail, intermodal terminal and container park operations. The Taskforce is also examining planning and regulation issues.

Freight Infrastructure Advisory Board

The NSW Government established the Freight Infrastructure Advisory Board in December 2004 to examine proposals to increase the proportion of containers transported by rail, improvements to transport and logistics, and the establishment of intermodal hubs across Sydney. The report by the Board, including a number of recommendations for consideration by government, was released in October 2005 for industry and public comment.

The NSW Government’s response to the Board’s report was released in May 2007 and broadly endorsed the recommendations. In particular, the NSW Government endorsed plans to:

• Establish new terminals at Enfield and, subject to discussions with the Australian Government, at Moorebank.
• Achieve a target of 40 per cent of freight carried by rail which will reduce the number of truck movements on key arterial roads by approximately one million truck movements per year.
• Reduce truck movements around Port Botany and inner metropolitan Sydney by up to 300 per day.

The Port Freight Logistics Plan

The Port Freight Logistics Plan represents a framework by Sydney Ports for improvements to landside logistics to meet the challenges of managing port activities in light of anticipated demand. The Plan discusses existing port operations, initiatives to maximise the use of rail, and initiatives to minimise the impact of truck movements generated by the port. The plan has been developed with the involvement of industry and government stakeholders. It also fulfils the development consent conditions of the Port Botany Expansion.

The successful implementation of the Port Freight Logistics Plan will require ongoing involvement with a number of industry and government stakeholders. Sydney Ports believes that the matters and issues discussed in the plan will assist in improving port freight logistics to the benefit of the port, industry and the community.