Missing land links are a key to faster shipping
The Albanese government has indicated a review of the Inland Rail megaproject is imminent, amid moves from port authorities for better rail and road linkages.
The Albanese government has indicated a review of the Inland Rail megaproject will be announced soon, amid moves and calls from port authorities for improvements to rail and road linkages to maintain the nation’s supply chains and unlock greater efficiencies.
A spokesperson from the Department of Infrastructure, Transport, Regional Development, Communication and the Arts has confirmed the $14.5bn north-south Inland Rail will be reassessed, including a planning project to identify the timing and alignment of a dedicated freight corridor to the Port of Brisbane.
“The planning project is investigating the need for better access, and what steps could be taken to improve rail freight reaching the port, while considering local residents’ concerns regarding coal trains, noise and construction activities along this alignment,” the spokesperson says, indicating this will be complete by 2023.
With industry leaders gathering for the Ports Australia biennial conference starting in Brisbane on Wednesday, Ports Australia chief executive Mike Gallacher says the Inland Rail development must connect to the ports. Under the current model, the double-stacked trains will run to Acacia Ridge, 38km from the Port of Brisbane, leaving the last tranche to be transported through a single-stack dual-gauge for export.
“It’s absolutely critical,” Gallacher says. “If this project is to realise its full potential — to ensure efficient access to export markets for agricultural product — to have the Inland Rail finish 30km west of the Port of Brisbane is hardly efficient.
“What we don’t want to see is for any potential efficiencies for agricultural trade, and therefore the Australian economy, to be lost by virtue of the fact that this investment is truly an inland rail,” he says.
Australian Logistics Council chief executive Dr Hermione Parsons echoed the call, saying inefficiencies in supply chains are often on the landside, with land access to ports a crucial issue.
“If you seek end-to-end supply chain efficiency and productivity, you need to be approaching the whole issue as a system,” she says.
“Supply chains are complex. At all times it is the interdependency of businesses and different points in the chain that make it so fascinating, so complex and sometimes so convoluted. The biggest impacts on ports at the moment continues to be the issue of encroachment and the non-investment in land for the future,” Parsons says.
Australia’s 17 nationally significant ports enable 98 per cent of the country’s external trade. Bulk exports through the ports of Port Hedland, Dampier and Newcastle last year facilitated unprecedented exports of iron ore, coal and grains, while cargo ports in Melbourne, Sydney’s Botany and Brisbane supported Australian’s pandemic purchases, from machinery to home-renovation materials and food.
Ports and their role in supply chains have been in the spotlight more than ever since the Covid-19 pandemic made visible their previously invisible hand in economic function.
Further strain has been added amid the tensions between China and Taiwan, the Ukraine war, drought in Germany and strikes in the UK. Historically high levels of disruption spiking the Federal Reserve Bank of New York’s global supply chain pressure index – which tracks the unprecedented impacts on port, shipping, rail and road delivery times – has been borne out in Australians’ long waits to receive their newly bought vehicles or furniture.
NSW Ports chief executive Marika Calfas says Australian ports have still enabled record trade despite global supply chain interruptions, but were just one element of the system.
“Our ports are one very important node in a connected supply chain that has faced significant disruption globally over the past couple of years,” she says.
“We need every part of the system to work efficiently and effectively for the whole system to work. The ports themselves, here at Botany and Australia more broadly, have been able to deal with that global disruption very effectively, unlike what has happened in ports around the world.”
Ports Australia’s Gallacher says Australian ports have “basically nailed it”.
“We welcome the awareness across government and industry about the impact of ports on our nation [but] it’s important to realise that we are but one link in a supply chain.”
The throughput continued to flow in the past financial year. NSW Ports’ Port of Botany handled one-third of the nation’s fuel supply, 100 per cent of the bitumen used in NSW and 90 per cent of the bulk chemicals. The Port of Mackay had record throughput, moving 3.6 million tonnes of products including sugar and grain. And the Pilbara Ports Authority set a new world record to achieve 733.1 million tonnes in the 2022 financial year, up 1 per cent despite Covid-19 effects.
Australian port productivity has come under scrutiny from shipping companies, the competition regulator and World Bank global rankings in recent months. A Productivity Commission draft report into the maritime logistics system is expected in September, which has received submissions about port user charges, time-on-port and efficiency. But industry leaders argue their performance is strong and appropriate to the volumes Australia requires.
Gallacher says the development of future port infrastructure such as works to accommodate huge vessels carrying up to 20,000 containers, requires the capacity of the transport infrastructure connecting ports and certainty around future trade volumes.
He says the east coast ports have the infrastructure in place to support vessels up to 10,000 20-foot equivalent units [TEUs] but most of the ships coming to Australia are still around 6000 TEUs.
“If you were to bring a vessel in now with 15,000 TEUs, what would that mean for road and rail infrastructure, in trying to get those 15,000 TEUs dropped at a port to their distribution centres, which are quite often some kilometres away from the port?” Gallacher asks.
A $20m planning assessment for a dedicated freight corridor to Brisbane’s port is under way, as is a business case for a proposed intermodal terminal for the city. About $2bn has been committed for an intermodal terminal at the Port of Melbourne.
The ALC's Parsons says the development of intermodal terminals – such as at the Inland Rail connection to the Port of Melbourne – is important to achieve end-to-end efficiency and ease road congestion.
She says the Moorebank Intermodal terminal in Sydney is an example of an efficient end-to-end arrangement, allowing upgrades such as automation. About $2bn has been committed for an intermodal terminal at the Port of Melbourne.
Port of Brisbane chief executive Neil Stephens says any review of Inland Rail must place a priority on tackling “arguably the most important pieces of the project, directly connecting the infrastructure to ports at both ends”.
“This issue has been put in the too-hard basket for too long,’' Stephens says. “Ensuring Australia has the most efficient, most productive and the most sustainable freight rail network must be a national priority, and directly connecting Inland Rail to the ports is central to that goal.”
Port of Melbourne chief executive Saul Cannon says rail has to play an increased role in Australia’s domestic and international freight supply chains.
“That’s why Port of Melbourne is investing in rail inside the port gate to support private and public investments in freight rail,’’ he says.
“The Port of Melbourne is investing in infrastructure to move more freight by rail. Our $125 million Port Rail Transformation Project will provide the port side infrastructure to welcome future freight trains through the Victorian Government’s Port Rail Shuttle Network.”
Same-sex marriage anathema to Howard
John Howard’s cabinet pondered banning gay couples from adopting foreign children by legislating against overseas same-sex unions, newly released documents show.
Bag the best deal for that dream 2025 trip
Planning a big trip for 2025? Here’s how you can make some major savings in the 2024 Black Friday sales.