PORT OF TOWNSVILLE NORTHERN AUSTRALIA S TRANSPORT LINK TO THE WORLD TOWNSVILLE PORT EXPANSION PROJECT MAGNETIC ISLAND KNOWLEDGE FORUM 29 APRIL 2017
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1 PORT OF TOWNSVILLE NORTHERN AUSTRALIA S TRANSPORT LINK TO THE WORLD TOWNSVILLE PORT EXPANSION PROJECT MAGNETIC ISLAND KNOWLEDGE FORUM 29 APRIL 2017
2 AGENDA: Contents CONTENTS Port of Townsville Context Current Operations Drivers of Growth 4 5 Port Expansion Project Overview Stage 1 (Channel Capacity Upgrade)
3 PORT OF TOWNSVILLE CONTEXT: Ports Sector 77 Trading Ports in Australia 20 Ports in Queensland, 15 Trading Townsville Port is designated as a Priority Port under the Sustainable Ports Development Act 2015 Outstanding Universal Value (OUV) of GBRWHA is an intrinsic consideration in the port s development, management and governance
4 PORT OF TOWNSVILLE CONTEXT: Northern Australia Largest container, general cargo and automotive port in Northern Australia DARWIN Population: 130,585 Port Tonnage: 3.4 M tonnes CAIRNS Population: 158,985 Port Tonnage: 1.9 M tonnes TOWNSVILLE Population: 192,038 Port Tonnage: 10 M tonnes MACKAY Population: 121,090 Port Tonnage: 2.89 M tonnes Servicing > 700,000 people (70% of Northern Australia) with essential goods
5 PORT OF TOWNSVILLE CONTEXT: Role and Functions Statutory Functions (Transport Infrastructure Act 1994): (a) establish, manage, and operate effective and efficient port facilities and services in its port (b) make land available for i. the establishment, management and operation of effective and efficient port facilities and services in its port by other persons ii. other purposes consistent with the operation of its port (c) Provide/arrange provision of ancillary services or works necessary or convenient for the effective and efficient operation of its port (d) keep appropriate levels of safety and security in the provision and operation of the facilities and services (e) provide other services incidental to the performance of its other functions or likely to enhance the usage of the port
6 >300 HECTARES LAND >400KM 2 PORT LIMITS 2 Ports TOWNSVILLE & LUCINDA $625M TOTAL ASSETS 8 OPERATING BERTHS >150 YEARS OPERATION
7 8,000 DIRECT & INDIRECT JOBS
8 CONNECTING NORTH QUEENSLAND TO > 240 PORTS IN > 40 COUNTRIES
9 10 MILLION TONNES TRADE WORTH $10BN VALUE EACH YEAR
10 PORT ACTIVITIES: Key Trades MINING & RESOURCES AGRICULTURE FUEL, CEMENT & CHEMICALS GENERAL CARGO 45.20% 35.52% 11.33% 7.95% 4.4 MILLION TONNES 3.5 MILLION TONNES 1.1 MILLION TONNES 0.8 MILLION TONNES
11 BITUMEN & CEMENT CONTAINERISED GOODS >30 KEY COMMODITIES FUEL, GAS & CHEMICALS CARS & EQUIPMENT METALS, MINERALS & MINING CATTLE, MEAT, RICE & SUGAR
12 DRIVERS OF GROWTH: Key Factors Trade Growth Commercial and Financial Considerations Regional Population Growth Technology PORT GROWTH & DEVELOPMENT Industry Developments in NQ Environmental & Social Factors Global Shipping Trends Government Policies
13 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 FY37 FY38 FY39 FY40 TONNES (MILLIONS) FY41 FY42 FY43 FY44 DRIVERS OF GROWTH: Trade Outlook 2045 UP TO 40 MILLION TONNES BY Low Growth Medium Growth High Growth
14 DRIVERS OF GROWTH: Trade Growth Sectors IMPORTS Cars, fuel, oil, gas, fertiliser, bitumen, furniture, cement, containers, general cargo, zinc 1991 EXPORTS Sugar, molasses, minerals, metals, fertiliser, cattle, chilled meat, containers, rice, grains, vegetables, fruit POTL office POTL office
15 LIQUIDS BULK MINERALS CONTAINERS CEMENT FERTILISER SUGAR MINERALS CATTLE, MOTOR VEHICLES CRUISE/DEFENCE SUGAR MINERALS FUELS CONTAINERS SUGAR
16 DRIVERS OF GROWTH: Port Occupancy
17 $40.7 MILLION >100,000 TEU THROUGHPUT DEC 2017 COMPLETION DATE 350, , , , , ,000 50, Container Forecasts (TEU's) NORTHERN AUSTRALIA S TRANSPORT LINK TO THE
18 DRIVERS OF GROWTH: What Our Customers Say The only way to ensure the improvement of service internationally and lower costs of logistics for local businesses is if the Port of Townsville continue with their plans to expand the channel With this expansion Townsville will be able to accommodate considerably larger vessels. This opens the commercial doors to an exciting range of new business avenues not previously contemplated dur to non existent infrastructure that is now available through the ongoing expansion programme. Widening of the Townsville channel is critical to ensure fuel supply security to Northern Queensland. Given the cyclonic and tropical weather conditions in NQ, often roads are cut meaning fuel supply via road transport is not a viable long term strategic option. Townsville faces a massive disadvantage if we import containers of materials to Brisbane and rail and truck them up. We cannot then take the raw materials and convert them and be competitive with that process. We absolutely need this increased capacity that only a port expansion can achieve if we are going to be a chance of putting high quality, cost competitive agricultural products, on supermarket shelves in Asia. The expansion of Townsville Port's infrastructure is more important now than ever before. North Queensland businesses today have more opportunities to directly connect with Australia's largest trading partners. Upgraded Port infrastructure will attract additional direct services, reduced shipping times and increased volume through our Port which will directly benefit North Queensland's local businesses and economy. Expansion will facilitate direct shipping services which will help local importers and exporters to ship directly through Townsville's port and save costs.
19 DRIVERS OF GROWTH: Shipping Industry Position Port of Townsville is a growth port of the future in particular for liner and PCC (due to the ceasing of car manufacturing in Australia plus natural growth) trades. To allow the port to grow its channel width will need to be widened. This widening of the channel in the appropriate areas must be addressed urgently to allow bigger ships into the port. If widening of the channel is not put forward as a priority, carriers will be forced to review their current stance which will result in withdrawing from calling Townsville long term. Globally all carriers are looking at introducing larger ships for all types of trade whether it be Liner, PCC, bulk, LNG etc. These larger and newer ships are more efficient and environmentally friendly to our eco system.
20 DRIVERS OF GROWTH: Global Shipping Trends RATIONALE
21 DRIVERS OF GROWTH: Global Shipping Trends RATIONALE
22 DRIVERS OF GROWTH: Cruise Shipping Trends > 80% CRUISE SHIPS BUILT TODAY CANNOT FIT INTO TOWNSVILLE
23 DRIVERS OF GROWTH: Defence Shipping Trends AS NAVY S FLEET BECOMES LARGER OVER THE YEARS, BOTH IN THE NUMBER AND SIZE OF SHIPS, NAVY BASES IN NORTHERN AUSTRALIA WILL REQUIRE SIGNIFICANT UPGRADES. Defence White Paper, 2016
24 DRIVERS OF GROWTH: Container Shipping Trends < 5% CONTAINER SHIPS IN AUSTRALIA CAN FIT INTO TOWNSVILLE
25 CHANNEL WORKS PORT EXPANSION AREA FUTURE RAIL CORRIDOR
26 $1.6BN PORT EXPANSION PROJECT MTPA BY 2045 UNDER HIGH GROWTH 30 YR STAGED DEVELOPMENT 6 NEW BERTHS 150 HA RECLAMATION AREA
27 PORT EXPANSION PROJECT: The Process Master Plan (2007) PEES ( ) PEP EIS (2010 present) EIS Referral EPBC and IAS (April / May 2011) Final TOR / EIS Guidelines (April 2012) EIS Submitted (March 2013) Public Consultation (closed May 2013) Supplementary Information Identified (July & Dec 2013) Project Staging Considered and Revised in Response Additional EIS Completed and Submitted (October 2016) Public Consultation on AEIS (closed November 2016)
28 STAGE 1 CHANNEL WIDENING: Overview
29 STAGE 1 CHANNEL WIDENING: Impacts for NQ $600 - $3,000 more per car $1,500 - $4,000 more per container
30 STAGE 1 CHANNEL WIDENING: Benefits $580M benefits BCR FTE Jobs in Townsville, 245 FTE Jobs in Qld $20M economic impact from cruise ships by ,910 hours saving of road travel time 8,230 b double trucks removed off highways 11 x more efficient than road 4 x more efficient than rail 11 million kilometres saving of road travel a year 25,000 containers 400,000 tonnes off road/rail per year
31 FURTHER INFORMATION: Publicly Available
32 FURTHER QUESTIONS: Contacts Ranee Crosby Chief Executive Officer P: E: Kim Gebers General Manager Infrastructure P: E: Melinda Louden Manager Environment P: E: Sharon Hoops Manager Corporate Affairs P: E: Annie Ilett Community Engagement Officer Magnetic Island P: E:
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