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Rail containers and intermodal terminals: Sydney Ports' response


Lachlan Benson
 
Total container trade through Port Botany increased 8% to reach a record 1.928 million TEU in the financial year to 30 June 2010, largely driven by strong imports. Rail volumes at Port Botany have traditionally been export driven and have continued to increase in recent years.
 
Exports from regional NSW contributed to the 9th consecutive year of growth for Port Botany as full container exports for financial year 2009/10 reached a new record of 442,600 TEU. However, the majority growth in port throughput in 2009/10 has been driven by imports, up 8.6 percent, supported by the strong Australian dollar. 
 
As trade grew 0.3 per cent in the GFC-impacted 2008/09 year, the rail throughput figure was 305,000 TEU representing a 19.8% mode share for rail. 
 
In 2009/10 trade grew 8 per cent, rail volumes increased to 317,000 TEU, a record year. However, the overall 2009/10 mode share declined to 18.8% as rail volumes were impacted substantially by a range of external factors that are addressed below.
 
The previous 12 months had been characterised by unprecedented volatility in global financial markets. Negative influences on rail have included a high Australian dollar dampening the growth in key rail-transported export commodities.
 
There was also an unusually high number of operational incidents affecting rail utilisation to and from the port over the 2009/10 period, which resulted in significant volume intended for rail ultimately going by road. This moreover affected the marketability of rail over road during significant periods such as the 2009 October –December Christmas peak season. Incidents have included:
  • Lower and inconsistent terminal loading productivity at the Patrick Terminal associated with well-documented issues with their rail-mounted gantries.
  • Changes to shipping line contracts between terminals resulting in shifting rail demand and operational problems at the port interface.
  • A significant number of line closures due to maintenance and weather events at critical times.
In addition, towards the end of 2009/10 financial year, Patrick’s closure of its Camellia site and exit from the market of its vertically integrated rail operator Patrick Port Link has had a significant short-term impact on rail, which other terminals such as Yennora are aiming to capture for rail.
 
Sydney Ports Corporation, through the Port Botany Landside Improvement Strategy (PBLIS), is adopting key initiatives such as the development of an Operational Performance Management (OPM) regime for rail through the Sydney Ports, led Port Botany Rail Team.
 
A supply chain improvement plan, including a Botany-Enfield corridor strategy and protocol for aligning rail paths to stevedore windows are amongst other key programs that Sydney Ports is driving to improve the efficiency of the rail system servicing the port. The Port Botany Rail Team is focussing on improving the number of back-loaded imports to maximise rail utilisation and mode share.
 
The completion of a network of intermodal terminals at Enfield, Moorebank and potentially Eastern Creek, together with the Southern Sydney Freight Line, will assist towards the NSW Government’s long-term target of achieving 40 per cent of freight by rail to and from Port Botany.
 
These projects will be included in a NSW Freight Strategy to be released in late 2010.
 
Numerous infrastructure improvements over the next few years will also substantially increase capacity for rail to grow in the Port Botany supply chain. Current projects include:
  • The ARTC’s Southern Sydney Freight Line, Metropolitan Freight Network take-up, Botany Yard Works and Enfield Staging Roads.
  • Macarthur Intermodal Shipping Terminal extension to 650m rail sidings and new rail business.
  • Additional stevedore rail connections and ability to handle 650m trains off the network.
  • Sydney Ports Enfield Intermodal Logistics Centre and grade separation works at the port.
  • Additional intermodal terminal capacity projects planned, i.e. Moorebank and Western IMT.
Lachlan Benson is the executive general manager, industry relations and logistics, at Sydney Ports Corporation.

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