Port Freight Logistics Plan

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SYDNEY PORTS CORPORATION

Port Freight Logistics PlanA framework to improve road and rail performance at Port Botany

June 2008


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ContentsSydney Ports Corporation

1. Introduction 3

2. Existing container freight operations 4

2.1. Portside freight operations

2.2. Landside freight operations

Road

Rail

Intermodal terminals

2.3. Future challenges

Areas for improvement

Consistency with best practice

3. Maximising the use of rail infrastructure in servicing the port 11

3.1. Enhancing rail access and operations at Port Botany

Port Botany container terminals

Botany Yard

Port Botany Freight Line3.2. Upgrading rail freight corridors in metropolitan Sydney

3.3. Intermodal terminal development to support rail movements

4. Minimising truck movements in servicing the port 16

4.1. Optimising road operations at Port Botany

Encouraging truck movements away from peak periods

Introduction of high efficiency container trucks in Port Botany

Road enhancements in Port Botany

Operating hours of port logistics industries

4.2. Increasing truck efficiency to minimise road movements

Higher Mass Limits (HMLs)Mechanisms to support better truck scheduling and utilisation

4.3. Expanding road freight corridors in metropolitan Sydney

5. Implementation program 21

5.1. Consultation

5.2. Deliverable milestones

5.3. Reforming Port Botanys links with inland transport IPART

5.4. Efficiency indicators


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The Port Freight Logistics Plan represents a framework

by Sydney Ports Corporation 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 successful implementation of the Plan will require

ongoing facilitation 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.

The Port Freight Logistics Plan also fulfils the

development consent conditions of the Port Botany

Expansion, as shown in Table 7 on page 27. This

project will support the growth in container volumes

by providing an additional five berths and 60 hectares

of container terminal area. The expanded container

terminal area will also have dedicated road and

rail access.

Sydney Ports Corporation

Sydney Ports Corporation is a State-owned corporation with a mandate

for managing port activities at Port Botany and Sydney Harbour, and a key

stakeholder in facilitating the efficient landside movement of containers

and general cargo.

Introduction


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Sydneys sea ports are a focal point of a network of

sea, road and rail links connecting the importers and

exporters of NSW with international markets. Growth in

container trade is strongly linked to economic growth.

While there are a number of predictions for container

growth, the annual growth rates for Sydneys container

trade are predicted by Sydney Ports to be between 4.8

per cent and 5.6 per cent per year for the next 20 years.

Port Botanys container trade is forecast to increase

from around 1.6 million TEUs ( twenty-foot equivalent

units) per year to more than 3 million TEUs per year

by 2025.

Sydneys sea ports constitute a significant asset, handling

in excess of $50 billion worth of trade per year. Around

45 per cent of the cargo by volume and 80 per cent by

value handled through Sydneys sea ports is containerised

cargo. Containers carry a broad range of primary products,

manufactured items and consumer goods which are

distributed widely within metropolitan Sydney. More

than 97 per cent of this volume is handled at Port Botany

and over 85 per cent of these are containers packed or

unpacked within the greater metropolitan area of Sydney.

Due to its proximity to the Sydney market, Port Botany is

and will remain the primary port for the import and export

of containerised cargo in NSW.

2.1. Portside freight operations

The portside freight operations consider the

arrangements in place to unload and load containers

from a vessel that arrives at the port. At Port Botany,

there are two container terminals where the initial

storage of containers and the initial transfer of

containers by road or rail are currently undertaken, at

Brotherson Dock North and Brotherson Dock South by

two stevedoring companies: DP World (formerly P&O

Ports) and Patrick (owned by Asciano). The expansionof Port Botany will create a third container terminal.

2.2. Landside freight operations

An efficient transport system in a capital city such as

Sydney depends on the effective integration of the

various components within the transport chain. The

ports area of influence and involvement therefore

extends beyond the traditional confines of the maritime

activities and port operations and into the area of

landside logistics and supply chains. Sydney is a heavily

import dominant port. For every two containers that

arrive with cargo, one returns overseas empty. The

export trade is split between regional product and

metropolitan manufactured goods. The inbound supply

chain for containers is almost exclusively restricted to

the Sydney metropolitan area, with containers being

unpacked in warehouses across the city. However,

there are four concentrated areas for industrial

distribution within the metropolitan area: Port Botany,

inner and middle west, south west and far west.

The logistics chain for the transfer of container cargo

through the port is shown in Figure 1. It operates in

two ways:

Road based where containers are transported directly

by truck to importers warehouses and distribution

centres for unloading. Containers are returned, viaan empty container park, to the port empty or sent

to another warehouse for packing with export goods

and transported to the port for shipment off-shore.

Road and rail based where containers are

transported by rail to intermodal terminals close to

the market being served and unloaded for transport

by truck to warehousing and distribution areas within

that market area. This process reduces the truck

distance involved and will improve the reliability in

delivery times. Empty containers can make the return

journey via the intermodal terminals, or be sent to

exporters warehouses for packing with export goodsand returned to the port via the intermodal terminal.


About 98 per cent of Australias international trade is undertaken by

sea and provision of adequate port facilities and associated landside

logistics is vital for the continued growth of the NSW economy.

2. Existing container freight operations


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Figure 1: Logistics chain for road and rail based transfer of containers


Transport chain using direct road movement

Transport chain using intermodal terminal

ROAD MOVEMENT

ROAD MOVEMENT WAREHOUSE

PORT & STEVEDORING OPERATIONS

INTERMODAL TERMINALPORT & STEVEDORING OPERATIONS

WAREHOUSE

RAIL MOVEMENT

IMPORTER/EXPORTER

IMPORTER/EXPORTER

ROAD MOVEMENT


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Road

Sydney is supported by a motorway system that

forms an orbital network within the metropolitan areas

(Figure 2). This network provides direct linkages to

industrial areas, warehousing and port related areas

at Port Botany, inner and middle west, south west

and west of Sydney. The orbital network includes the

following roads:

M1 Motorway from Sydney Airport to Sydney CBD.M2 Motorway and Lane Cove Tunnel from Seven

Hills to Gore Hill Freeway.

M4 Motorway from Penrith to Strathfield.

M5 Motorway from Campbelltown to Sydney

Airport.

M7 Motorway from Liverpool to Pennant Hills

(crossing the M4 Motorway).

Cross City Tunnel linking the City West Link to the

M1 Motorway.

There is direct road access at Port Botany to the

Sydney orbital network via Foreshore Road (the main

port access road). Over three-quarters of containers

are transported to and from the port by road by over

200 road transport carriers.

Rail

A dedicated rail freight line exists between Port Botany

and Enfield/Chullora, a distance of approximately 20

kilometres. There is also a freight rail link to the port

at White Bay which joins the main Port Botany Freight

Line at Wardell Junction in Marrickville (Figure 2).

A freight line extension to the south west exists from

Chullora to Sefton Junction (about 2.5 kilometres).

From Sefton Junction to Macarthur, freight trainstraverse and share the passenger network on the

Main South Line. The Australian Rail Track Corporation

received planning approval in December 2006 to

provide a freight line along the existing rail corridor

between Sefton Junction and Macarthur. This project

is expected to be completed by 2009.

A further freight line extension to the north runs from

Chullora to Flemington Junction, Strathfield and North

Strathfield (about five kilometres), where freight trains

then use the passenger network on the Main North

Line to Hornsby via Epping.

Freight trains travelling from Enfield/Chullora to the

west share the passenger rail network on the Main

West Line from Lidcombe to Penrith.

Along the metropolitan rail corridors where freight

trains share the network with passenger trains,

priority is given to passenger services. This represents

a significant constraint to rail freight efficiency,

particularly during the peak commuter hours and when

curfews prevent any activities by freight trains on the

metropolitan rail network.




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Motorways

Main roads

Dedicated freight rail lines

Shared passenger/freight rail lines

Dedicated passenger rail lines

Southern Sydney Freight Line (planned)

Intermodal Terminals

Industrial zones

Port facilities

Enfield Intermodal Logistics Centre (planned)

Moorebank Intermodal Terminal (proposed)

Port Botany development area

February 2008

Figure 2: Metropolitan road and rail links


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The Botany to Enfield freight line is linked to

operational sidings in Port Botany on the Patrick

container terminal, DP World container terminal and

the P&O Trans Australia container park. The port is

serviced by a number of rail operators:

Macarthur Intermodal Shipping Terminal at Minto

is using Independent Rail as its train provider for its

Port Botany shuttle.

Mannway Intermodal Terminal at Villawood haveappointed Southern&Silverton as their rail operator

for Port Botany shuttles.

Maritime Container Services at Cooks River uses

Independent Rail as its rail operator for Port Botany

shuttles.

Camellia Intermodal Terminal is using Patrick

PortLink as its train provider for its rail shuttles.

Yennora Intermodal Terminal is using Patrick

PortLink and InterLink (QR National) as its train

provider for its rail shuttles.

Australian Railway Group (QR National) is operating

the Manildra Groups Manildra and Nowra rail

services.

Patrick PortLink, Southern&Silverton and

Independent Rail are servicing clients in the Central

West, including Bathurst, Blayney, Dubbo, Warren

and Forbes.

Patrick PortLink, Southern&Silverton and

Independent Rail are servicing clients in the North

West, including Narrabri, Wee Waa and Moree.

Sydney Ports and the NSW Government have

identified the need to increase the proportion ofcontainers transported by rail to and from Port Botany

from the current mode share of 20 per cent to a rail

mode share to 40 per cent.

Intermodal terminals

A number of intermodal terminals are located within

the Sydney metropolitan area. These are primarily

located in close proximity to areas of concentrated

industrial distribution. These intermodal terminals

service the port or function as a transfer point

for interstate cargoes. Further information on the

intermodal terminals in Sydney is provided in

Table 1.

Table 1: Intermodal terminals in Sydney

Location Users Siding length Estimated capacity

Camellia Patrick PortLink 300 metres 80,000 TEU

Chullora Pacific National

(interstate operations only)

680 metres 300,000 TEU

Cooks River Maritime Container Services 500 metres 150,000 TEU

Villawood Mannway 350 metres 20,000 TEU

Minto Macarthur Intermodal Shipping Terminal 390 metres 45,000 TEU

Yennora Patrick PortLink/QR National 500 metres 50,000 TEU

Note: Terminal capacity is limited in some cases by the availability of freight train paths.



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2.3. Future challenges

The existing road and rail freight networks have

generally been able to efficiently handle the freight

task. However, there are a number of indicators that

suggest supporting the future freight task will pose

significant challenges:

The volume of road general freight in Australia is

forecast to double over the next 20 years.

Container volumes at Port Botany are anticipatedto increase from 1.62 million in 2006/07 to over

3 million within 20 years.

Continued growth in population and economic

activity also means that increases in freight

movements are inevitable.

The Metropolitan Strategy, released by the NSW

Government in December 2005, provides a strategic

response to these trends and the identification of

a possible future freight network for metropolitan

Sydney. The task of Sydney Ports, other government

agencies, professionals and industry involved inlogistics planning is to use this direction to develop

a series of outcomes that can be achieved in the

short, medium and long term. This will require

close collaboration between all stakeholders. The

Port Botany Logistics Taskforce established by the

NSW Government is a forum where collaboration

on a number of logistics issues is being undertaken

between government and industry.

Areas for improvement

A key objective of the Port Freight Logistics Plan is

to identify areas for improvement in the efficiency

of container movements and rail interfacing through

operational, technological or administrative changes.

Further details on possible improvements in the

efficiency of container movements and rail interfacing

are outlined in Sections 3 and 4. An implementation

program in achieving these improvements with the

involvement of government and industry is outlined in

Section 5.

One area where improvements can be made for

landside logistics relate to operational changes.

These consider commercial and non-commercial

arrangements that can enhance the practices by each

stakeholder or across a number of stakeholders within

the supply chain. The changes can have an impact

on efficient container movement and rail interfacing

by encouraging practices that support better truck

utilisation or increase the viability of train services

by using mechanisms that influence the price andallocation of transport movements for freight.

Technological changes are another area where

landside logistics improvements are possible.

Technological changes consider the use of electronic

methods to streamline or improve operations by each

stakeholder or across a number of stakeholders within

the supply chain. These changes can have an impact


by allowing for the introduction of tools that allow for

real savings in labour and resource utilisation, thereby

allowing for greater efficiencies in the movement of

freight into and out of the port.

Administrative changes can also provide improvements

to the management of logistics at the port. These

changes consider the role of institutions, frameworks,

practices and procedures that support the needs of

each stakeholder or across a number of players within

the supply chain. The changes can have an impact


by allowing for richer information flows, improved

co-ordination and better co-operation within one

element of the supply chain or amongst a number of

stakeholders across the supply chain.



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Consistency with best practice

Sydney Ports closely monitors the performance

of Australian and international ports in relation to

landside logistics operation and management. This is

an important element in benchmarking our strategic

and operational outcomes achieved over a defined

period. The key areas of interest for Sydney Ports are

investigating methods in improving road transport

movements and management, and understanding

identifying ways in increasing the mode share towards

rail that can support the efficient movement of port

related containers within metropolitan Sydney and

regional New South Wales.

It is important that the Port Freight Logistics Plan

is informed by leading examples by other container

ports to ensure that best practice in relation to

freight logistics is being achieved. Table 2 outlines

a range of ports in Australia, Asia, North America

and Europe that have been examined in relation to

landside logistics management Port of Melbourne,

Port of Yokohama, Port of Los Angeles and Port of

Rotterdam. A number of initiatives in relation to road

and rail in the ports at these locations are consistent

with the outcomes being sought by Sydney Ports

and the NSW Government. These include additional

rail infrastructure to provide new access or enhance

existing operations, trucks that can handle a greater

number of containers per vehicle, and mechanisms to

encourage truck movements away from peak periods.

Table 2: Landside logistics improvements in Australian and international ports

Port locationLandside logistics improvements

Rail Road

Port of Melbourne

Australia

Target to increase rail mode share

to 30 per cent

Dynon Port Rail Link to provide rail

access to container terminals

Higher Efficiency Container Trucks with

additional container capacity per vehicleand measurable operational efficiencies to

be introduced within an extended area at

the port

Port of Yokohama

Japan

Provision for direct rail access to

selected container terminal

Port of Los Angeles

United States of America

Completion of Alameda Corridor with

high speed rail access between port

and industrial areas

PierPass charging regime to discourage

truck movements at port during peak

periods

Port of Rotterdam

Netherlands

Expanding rail capacity and removingoperational limitations

Encouraging staggered transportthroughout the day

Introduction of larger trucks(up to 3 TEU capacity)



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The volumes transported by rail to and from Port

Botany have increased from 123,000 in 1997/ 98

to 300,000 in 2006 /07, and currently represents

20 per cent of all containers transported to and

from the port (Figure 3). These volumes include

export products from regional NSW, and port

shuttle movements of exports and imports within

metropolitan Sydney.

The NSW Government and Sydney Ports has ashared objective of achieving a 40 per cent rail mode

share for containers that are transported into and

out of Port Botany. Sydney Ports has developed a

rail simulation model as a tool to test the suitability

of various scenarios in meeting the rail mode share

target. A number of initiatives have been identified to

increase the role of rail in meeting the freight task for

metropolitan Sydney. In supporting these initiatives,

the key is to encourage market forces to drive the

modal shift towards rail in a sustainable manner.

This requires clear policy and investment in certain

network infrastructure to provide the platform for rail

to compete efficiently.

Figure 3: Port Botany rail volumes (1997/98 to 2007/08)

300

350

250

200

150

TEUs(000)

100

50

01997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2005/06 2007/08

FORECAST

A key element in logistics planning for metropolitan Sydney is

maximising the use of rail. The ability of this mode to transport large

volumes offers industry a transport mode that has a higher level of

efficiency, competitive usage costs, reduced environmental impactsand less road congestion.


3. Maximising the use of rail

infrastructure in servicing the port


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3.1. Enhancing rail access and

operations at Port Botany

A key component in maximising the use of rail

infrastructure is to ensure that Port Botany can cater

for projected demand. A number of initiatives have

been identified that can enhance rail access and

operations, as well as assist in encouraging a higher

mode share for rail of containers entering and leaving

Port Botany.

Port Botany container terminals

This area covers the movement of train services

between Botany Yard to the DP World and Patrick

container terminals. A number of initiatives have been

identified that will improve the efficiency and reliability

of these movements:

Continuing productivity improvements in loading

and unloading containers at stevedore container

terminals. Areas of future focus include stevedore

sidings to accommodate 600 metre train lengths,

introduction of improved rail handling equipment andtechnology by stevedores to handle larger container

volumes and implementation of separate shuttle

services to each stevedores sidings.

Provision of crossover to access the DP World

terminal to increase capacity for DP World rail

operations as this is currently impeded by single

line access. This will reduce the number and

duration of delays for DP World when a train is

waiting on the rail corridor for entry or exit into

Patrick container terminal.

Closure of the Interterminal Access Road rail

level crossing and construction of a grade

separated junction.

Providing rail infrastructure to support the use of

rail by the operator of the third container terminal at

Port Botany. Sydney Ports will provide an additional

track from Botany Yard to the new terminal that

offers a flexible and efficient arrangement for

prospective users.

Botany yard

Botany Yard is located just outside the port precinct.

The role of Botany Yard is to receive freight trains prior

to exchanging containers at the stevedore sidings

(imports and exports) , depart trains along the Port

Botany Freight Line to Cooks River, Enfield and the

metropolitan rail network, and control the access of

trains into and out of the yard, Patrick PortLink yard

and the container terminal sidings. The anticipated

increase in the number of containers transported by

rail will place limitations on effective performance of

the yard, including the availability of track to allow for

the staging and through movement of train services,

suitable lengths of sidings to support standardised

train services, and operational arrangements that allow

for timely and efficient movement of train services

into and out of the yard. A number of initiatives are

proposed over the next five years to support a greater

number of train movements:

Fostering closer management of rail operations

between the Botany Yard and rail sidings at

the container terminals. This includes ongoing

involvement in planning and managing train paths

and stevedore window allocations by Sydney Ports,

RailCorp, Australian Rail Track Corporation (ARTC),

DP World and Patrick.

Agreeing to a standardised train length consist

(600 metres) that reduces shunting and checking

trains.

Providing dedicated trains between each Port

Botany container terminal and metropolitan

intermodal terminals, subject to economically

feasible volumes.

Provision of additional track and infrastructure

in Botany Yard, including lengthening of sidings,

additional through tracks and signalling upgrade.

These works will cater for an increase in the

number of train movements to the port and

support standardised train lengths of 600 metres.

3. Maximising the use of rail infrastructure in servicing the port



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Port Botany Freight Line

The Port Botany Freight Line covers the length of

dedicated freight railway between Port Botany and

Enfield/Chullora in central-west Sydney. A number of

initiatives are proposed to ensure that rail operations

can cater for future movements into and out of the

port, as well as supporting more reliable and efficient

operations at pinch points:

Closure of Banksia Road pedestrian crossing onthe Port Botany Freight Line and construction of a

pedestrian overbridge to enhance operational safety.

Closure of General Holmes Drive level crossing

and (if required) investigation and construction of

alternate road access to minimise conflicts between

trains and vehicles, as well as eliminating a speed

restriction to the efficient operation of the Port

Botany Freight Line.

Refining access into and out of the Cooks River

intermodal facility through improved coordination

and infrastructure to minimise conflicts on through

movements along the Port Botany Freight Line.

Permitting use of tracks within the Enfield

Marshalling Yards as a common-user facility for rail

freight operators to stage trains which will improve

the efficient management of train services to and

from Port Botany, particularly through the passenger

curfews for regional trains and those metropolitan

intermodal terminals not on the dedicated

freight network.

Commitment to complete the duplication of the Port

Botany Freight Line between Mascot and Cooks

River or equivalent works to provide the necessary

track capacity to meet projected demand. Railmodelling undertaken by Sydney Ports indicates that

this work would be required within the next five to

eight years.

3.2. Upgrading rail freight corridors in

metropolitan Sydney

The anticipated growth in the volume of containerised

freight moved by rail will place more pressure on

existing rail arrangements. Along the metropolitan

rail corridors where freight trains share the network

with passenger trains, priority is given to passenger

services. This represents a significant constraint to

rail freight efficiency, particularly during the peakcommuter hours and when curfews prevent any

activities by freight trains on the metropolitan rail

network. As a consequence of these constraints,

reliability decreases from 80 per cent to 30 per cent

between Newcastle and Sydney and from 60 per cent

to 40 per cent between Macarthur and Sydney.

The planning and development of rail freight corridors,

including infrastructure design and land preservation,

is needed to improve access within the Sydney

metropolitan area and linkages north to Brisbane and

south to Melbourne. Action in this area will encourage

greater interest in using rail by customers andoperators by improving the reliability of freight train

movements. A number of projects under consideration

by government will enhance rail freight movements in,

out and within the Sydney metropolitan area:

Southern Sydney Freight Line a bi -directional

freight priority line between Macarthur and Sefton

to allow additional train movements between

Port Botany and freight distribution activities in

south-west Sydney. This project is planned to be

completed in 2009 to ensure that sufficient train

paths are available to meet projected growth in

rail mode share.Northern Line Upgrade a rail grade separation in

the vicinity of North Strathfield to allow Up trains

to access the metropolitan freight network without

the need to cross Down tracks, completion of full

quadruplication between North Strathfield and

West Ryde and dedicated freight access between

metropolitan Sydney and Newcastle. This project

will allow for additional train movements between

Port Botany and freight distribution activities in north

and west Sydney.




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3.3. Intermodal terminal development to

support rail movements

The need to expand the intermodal network within

Sydney is a prerequisite for the greater use of rail.

An intermodal terminal is a facility that allows for

the loading and unloading of containers and general

cargo between road and rail based transport.

These facilities are used for container movements

to/from the port and between different states. TheSydney metropolitan area comprises of a number of

intermodal terminals that serve port and interstate

movements. Analysis of container movements by the

Sea Freight Council of NSW in their February 2004

report New South Wales Import Export Container

Mapping Studyindicates that areas in the central-

west, south-west and west of metropolitan Sydney

account for 70 per cent of full import and 34 per cent

of full export container movements. The growth in

container volumes and improvements to transport

capacity can support the development of additional

intermodal terminals.

The Metropolitan Strategyoutlines a proposed network

of additional intermodal terminals in the central-west,

south-west and west of metropolitan Sydney to meet

predicted demand (Figure 4). These facilities are

proposed at Enfield, Moorebank and Eastern Creek

respectively. The NSW Government endorsed plans

for this metropolitan Sydney intermodal network in

May 2007. There are also other proposed intermodal

facilities being undertaken by the private sector,

including an expansion of the Macarthur Intermodal

Shipping Terminal at Minto and a joint venture

arrangement between Kaplan Investment Funds,

QR National and Stocklands for a new intermodal

facility at Moorebank.

The proposed intermodal terminals would have a

number of common elements to meet the required

freight logistics task. There would be direct rail links

(dedicated or shared) to Port Botany. Road transport

will provide and deliver containers and goods to

destinations within the catchment area. The inclusion

of warehousing and freight support services within the

site also provides an opportunity to reduce the number

of large truck movements within local communities.

Sydney Ports has developed a proposal for an

Intermodal Logistics Centre at Enfield that provides

an intermodal facility to cater for demand generated in

central-west Sydney. It is envisaged that this would be

one of the initial intermodal terminals implemented as

part of the proposed metropolitan intermodal network

for Sydney. Planning approval for the facility was given

by the NSW Government in September 2007. It is

envisaged that the facility will be operational by 2011.



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94

Figure 4: Proposed intermodal network for metropolitan Sydney


Existing intermodal terminals

Possible intermodal terminals

Proposed dedicated freight rail lines

Existing dedicated freight rail lines

Shared passenger freight rail lines

Motorway network

Ports

Employment lands

Planned employment lands

Potential employment lands for investigation

Existing urban area

Note: Chullora Intermodal Terminal is dedicated to interstate and regional freight.

December 2005 Source: NSW Department of Planning


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Logistics planning also requires an acknowledgement that road

transport will continue to support the majority of freight movements

within metropolitan Sydney. Recent extensions to the motorway

network have improved accessibility between Port Botany and keydistribution and industrial areas across Sydney.


Figure 5: Port Botany truck arrivals by hour of day

4. Minimising truck movements in

servicing the port

Nevertheless, this infrastructure is shared with

commuter vehicles and can have heavy traffic volumes

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 when compared to total traffic

(between 1 per cent and 2 per cent), it is important

that this growth be accommodated in future road

network planning.

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4.1. Optimising road operations at

Port Botany

A number of initiatives have been identified that can

optimise road operations at the port, thereby making

the most productive use of road infrastructure and

operational resources.

Encouraging truck movements away from

peak periods

Analysis by Sydney Ports indicates that a trend

towards truck movements away from peak periods

is emerging (Figure 5). There is also a proportionate

increase in truck movements on weekends

(Figure 6). This trend has been accompanied by

reductions in truck turnaround times during a period

of strong container growth. The anticipated increase

in truck volumes over the next few years will require

a further shift towards operations on a 24 hour,

seven day a week basis.

Introduction of high efficiency container

trucks in Port Botany

Sydney Ports is seeking approval from the Roads

and Traffic Authority (RTA) for the use of high

efficiency container trucks (HECT) in a defined area

within the Port Botany precinct. These vehicles offer

additional container capacity per vehicle and provide

measurable operational efficiencies for the movement

of containers within the port precinct. No operationalimpediments have been identified that could hinder

the effective operation of high efficiency container

trucks. The introduction of high efficiency container

trucks will facilitate improved container terminal

operation and provide more reliable delivery times,

thereby offering greater operating efficiencies for

importers and exporters in receiving and delivering

their cargo. The Port of Melbourne and the Port of

Brisbane already use high efficiency container trucks

within their port precincts.

Figure 6: Port Botany truck arrivals by day of week

4. Minimising truck movements in servicing the port

Monday

25

15

10

5

Percent

0

Tuesday Wednesday Thursday FridayDay of week

Saturday Sunday

202004 20071999


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Road enhancements in Port Botany

A number of incremental operational and minor

infrastructure road enhancements have been

identified that can provide for better traffic flows and

management to cater for current and future volumes:

A new road access point at Foreshore Road to

support the new container terminal expansion.

This new road will enable traffic generated by the

new terminal to avoid the Penrhyn Road/BotanyRoad/Foreshore Road intersection, thereby avoiding

potential capacity problems at this intersection.

The new road will also facilitate a reduction in the

number of port trucks using Botany Road north of

Foreshore Road. This road is the main access route

for port traffic into and out of the port.

The progressive updating of traffic management

plans for individual sites at Port Botany port to

mitigate and manage truck queuing and access

arrangements.

Sydney Ports will work with other government

agencies to analyse short and long termimprovements to intersection performance, truck

staging areas and contingency management for

Port Botany roads. These proposals would assist in

managing truck movements that balances the need

for operational efficiency and community amenity.

Construction of the proposed extension of Hale

Street by a private developer at Botany to Foreshore

Road. This will allow for direct truck access to Port

Botany. The new road will also facilitate a reduction

in the number of port trucks using Botany Road

north of Foreshore Road. This road is the main

access route for port traffic into and out of the port.

Operating hours of port

logistics industries

The stevedoring terminals at Port Botany operate

on a 24 hours per day, seven days per week basis

(24/7). The other parties in the transport chain for

containerised cargo operate varied hours, with many

businesses continuing to operate on a business

hours/Monday to Friday basis. The latter situation

means that resources, including transportinfrastructure and equipment, are under utilised.

This issue was examined by the Sea Freight Council

of NSW in the report released in January 2005 titled

Freight Supply Chain Coordination of Working

Arrangements.

Industry has identified that an extension of the

operating hours by an increased number of

organisations would provide efficiencies in the

transport chain as well as improved use of freight

transport infrastructure, such as the road network, in

non-peak periods. Government and industry should

continue to work together to implement strategies tospread the working hours of those organisations in the

freight transport chain. The introduction of incentives

and/or penalties may be considered to encourage a

change in operating practices.



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Sydney Ports CorporationSydney Ports Corporation

4.2. Increasing truck efficiency to

minimise road movements

Government and industry are working together to

identify and implement a range of measures that

improve truck efficiency and reduce unnecessary

road movements.

Higher Mass Limits (HMLs)

The NSW Government introduced the Higher MassLimit (HML) network from July 2006. HML allows

eligible road carriers to operate at increased mass limits

compared to statutory limits (Table 3). Road carriers

have to be accredited under the mass management

module of the National Heavy Vehicle Accreditation

Scheme (NHVAS). Continual maintenance of a

vehicles suspension is a requirement for NHVAS

accreditation. This initiative offers greater truck

efficiency while ensuring that the integrity of road

network infrastructure is maintained.

The NSW Government has also approved a number

of roads within metropolitan Sydney where HML

vehicles can operate and also cover other roads within

a 10 kilometre radius where the destination is in a

defined industrial zone. These include:

Princes Highway (from intersection with

King Georges Road) F6 Freeway.

F3 Freeway.

M4 Motorway (west of the M7 interchange) Great Western Highway (west of the M4 Motorway).

M5 Motorway General Holmes Drive

Foreshore Road (to Port Botany).

M7 Motorway (M7 Motorway to Pennant Hills

Road) M2 Motorway Pennant Hills Road

(M2 Motorway to F3 Freeway).

King Georges Road Roberts Road.


Vehicle

configuration

Standard (Gross)

Mass Limit

Higher Mass Limit

(HML)

Payload increase

(higher compared

to standard)

19 metre (6 axle)

semi-trailer

42.5 tonnes 45.5 tonnes 10 per cent

25 metre (9 axle)

B-double

62.5 tonnes 68 tonnes 13 per cent

Table 3: Higher Mass Limits of approved NSW roads


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Mechanisms to support better truck

scheduling and utilisation

A number of operational and technological

improvements have been implemented by industry,

such as vehicle booking system and automation of

truck scheduling processes, which has delivered

real benefits in managing truck scheduling and

utilisation. This improvement can be seen in average

truck turnaround times per truck at the Port Botanycontainer terminals, which have decreased from an

hour in 2000 to 50 minutes in 2007.

Government and industry will continue to examine

and progressively introduce a range of mechanisms to

allow for even more efficient use of container trucks,

including:

Delivering an export container or an empty container

to the port precinct and collecting an import

container in the same journey (backloading).

Investing in equipment that can assist trucking

operations such as global positioning systems,

transponders and web camera technology.

Enhancing computer systems, such as vehicle

booking systems.

Supporting greater use of electronic bulletin boards

and SMS technology to disseminate up-to-date

information on port activities and operational delays.

Facilitating greater use of electronic commerce to

eliminate paper documentation.

Examining greater use of technology to assist with

container examination by the border protection

agencies.

Continuing conformance to the introduction of the

Road Transport (General) Act 2005, which defines

mass, dimension and load restraint requirements

for vehicles.

4.3. Expanding road freight corridors in

metropolitan Sydney

The Metropolitan Strategyincludes a careful

examination of transport needs. The objectives in the

Strategy include improving the efficiency of all types

of freight movements in Sydney and connecting the

metropolitan regions with the economic gateways,

namely Port Botany and Sydney Airport. Sydney Ports

supports the examination of proposals to improve theroad connections between Port Botany and Western

Sydney, including an eastern extension of the

M4 Motorway and an increase to the capacity

of the M5 Motorway. These will be important

initiatives to ensure that landside logistics meets

long-term demand.



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The Port Freight Logistics Plan provides a framework to meet the

challenges of managing port activities in light of anticipated demand.

Figure 7: Sydney Ports stakeholder relationships

Transport Chain

Sydney Ports Users Consultative Group

Sydney Ports Cargo Facilitation Committee

Industry Groups

NSW Sea Freight Council

Australian Logistics CouncilShipping Australia

Transport Industry Associations

Government Agencies

Ministry of Transport

RailCorp

Roads and Traffic Authority

Local Councils

Australian Rail Track Corporation

Rail Groups

Botany Rail Steering Group

Botany Rail Operations Group

Botany Corridor/Botany Rail Yard/Container Terminals Interface

Group (joint working group)



The Plan discusses existing port operations, initiatives

to maximise the use of rail, and initiatives to minimisethe impact of truck movements generated by the port.

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.

5.1. Consultation

The successful implementation of the Port Freight

Logistics Plan requires close collaboration between

Sydney Ports and all stakeholders in the logistics

chain, including stevedores, rail operators, the road

haulage industry, importers, exporters, the forwarding

community and related government agencies. Sydney

Ports already works with a number of industry and

government stakeholders to resolve strategic and

operational matters and issues related to port freight

logistics (Figure 7). These relationships will be pivotal

in progressing with the successful implementation of

the Port Freight Logistics Plan.

5.2. Deliverable milestones

A number of initiatives have been identified in Sections

3 and 4 that have been included in an implementation

program to ensure best practice efficient and

advanced port freight logistics. The initiatives

included within the implementation program offer

discrete and incremental operational, technological

and administrative improvements to maximise the

use of rail infrastructure and improve the scheduling

and utilisation of container truck movements.

These initiatives also need to consider and address

environmental impacts as appropriate. The deliverable

milestones of the program are categories as short

term (20082009), medium term (20102012), longterm (20132016) and ongoing. The milestones related

to the implementation program to maximise the use of

rail are provided in Table 4. The milestones related to

measures to improve the scheduling and utilisation of

container truck movements are provided in Table 5.

5. Implementation program


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5.3 Reforming Port Botanys links with

inland transport Independent

Pricing and Regulatory Tribunal

The NSW Government commissioned a review by

the Independent Pricing and Regulatory Tribunal

(IPART) into the Interface between the Land Transport

Industries and the Stevedores at Port Botany.

On 18 March 2008, the Independent Tribunal released

its final report titled Reforming Port Botanys Links

with Inland Transport. The Independent Tribunal

has made 18 recommendations to improve port

performance.

A number of recommendations relate to the vehicle

booking system, Port Botany Rail Logistics team and

road transport industry matters.

At the time of publishing the NSW Government was

reviewing the recommendations and preparing a

response. Sydney Ports will have a key role to play in

the implementation of the agreed recommendations.


* Definition of timing: short term (20082009); medium term (20102012); long term (20132016).

Table 4: Implementation program to maximise the use of rail infrastructure

Enhancing rail access and operations at Port Botany

Program initiative Stakeholder(s) Timing*

Fostering closer management of rail operations

between the Botany Yard and rail sidings on

stevedores container terminals

Sydney Ports, RailCorp, Australian Rail

Track Corporation, DP World, Patrick

Short term

Provision of infrastructure improvements to Botany

Yard to support future growth and

improve access to the container terminals

Sydney Ports, Ministry of Transport,

RailCorp, Australian Rail Track

Corporation, DP World, Patrick

Short term

Medium term

Refining coordination and signalling infrastructure

to support efficient access into and out of the

Cooks River intermodal facility

Sydney Ports, Ministry of Transport,


Corporation

Short term

Medium term

Permitting use of tracks within the Enfield

Marshalling Yards as a common-user facility

for rail freight operators to stage trains

Ministry of Transport, RailCorp,


Short term

Medium term

Closure of Banksia Road pedestrian crossing

on the Botany Goods Line and construction

of a pedestrian overbridge

Sydney Ports, Ministry of Transport Medium term

Continuing productivity improvements in

container handling at container terminals

DP World, Patrick Medium term

Agreeing to a standardised train length

consist (600 metres) that reduces shunting

and checking trains

Sydney Ports, RailCorp, Australian

Rail Track Corporation, DP World and

Patrick

Medium term

Provision of additional track and infrastructure in

Botany Yard to cater for increase in train

movements and 600 metre train lengths


Corporation

Medium term

Closure of the Interterminal Access Road

rail level crossing and construction of a grade

separated junction

Sydney Ports, RTA, Railcorp, Australian

Rail Track Corporation

Medium term


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Upgrading rail freight corridors in metropolitan Sydney


Closure of General Holmes Drive level crossing and

construction of alternate road access

Ministry of Transport, Roads and

Traffic Authority, RailCorp, Australian

Rail Track Corporation

Medium term

Providing rail infrastructure to support the use

of rail by the operator of the third container terminalat Port Botany

Sydney Ports Medium term

Complete the duplication of the Botany Goods Line

between Mascot and Cooks River or equivalent

works to provide track capacity



Long term

Construction of Southern Sydney Freight Line

between Macarthur and Sefton Junction

Australian Rail Track Corporation Short term

Medium term

Complete rail grade separation on Main North

Line (at North Strathfield) to segregate freight and

passenger train movements



Medium term

Long term

Completion of full quadruplication on Main North

Line (North Strathfield and West Ryde)



Medium term

Long term

Dedicated freight access on Main North Line

(West Ryde to Newcastle)



Long term

Intermodal terminal development to support rail movements


Progressive development and/or enhancement of

private sector port related intermodal terminals

Private sector Ongoing

Completion of Enfield ILC Sydney Ports Medium term

Completion of Moorebank Intermodal Terminal Ministry of Transport Long term



Table 4: Implementation program to maximise the use of rail infrastructure (continued)


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Optimising road operations at Port Botany


Updating traffic management plans for individual

sites at Port Botany port to mitigate and manage

truck queuing and access arrangements

Sydney Ports Ongoing

Introduction of High Efficiency Container Trucks in

Port Botany, subject to approval by the Roads andTraffic Authority

Sydney Ports, Roads and Traffic

Authority, Australian TruckingAssociation

Short term

A new road access point at Foreshore Road to

support the new container terminal expansion


Authority

Short term

Medium term

Construction of the proposed Hale Street extension

to Foreshore Road

EG Property Group, Sydney Ports,

Roads and Traffic Authority

Short term

Medium term

Analyse improvements to intersection performance,

truck staging areas and contingency management for

Port Botany roads


Authority, City of Botany Bay, Randwick

City Council

Short term

Medium term

Encouraging truck movements away from peak

periods

Sydney Ports, DP World, Patrick,

Australian Trucking Association, Sydney

Ports Cargo Facilitation Committee

Medium term

Extension of operating hours of port logistics

industries

Sydney Ports Cargo Facilitation

Committee

Medium term

Increasing truck efficiency to minimise road movements


Continuing conformance to the introduction of the

Road Transport (General) Act 2005, which defines

mass, dimension and load restraint requirements

for vehicles

Roads and Traffic Authority, Australian

Trucking Association, Sydney Ports

Cargo Facilitation Committee

Ongoing

Investing in equipment that can assist trucking

operations including webcams

Private sector, Sydney Ports Ongoing

Reducing barriers to backloading in the port precinct DP World, Patrick, Sydney Ports CargoFacilitation Committee

Medium term

Enhancing computer systems, such as vehicle

booking systems

DP World, Patrick Medium term

Supporting greater use of electronic bulletin boards

and short message services (SMS) to disseminate

up-to-date information on port activities and

operational delays

DP World, Patrick, Sydney Ports Cargo

Facilitation Committee

Medium term

Facilitating greater use of electronic commerce to

eliminate paper documentation


Committee

Medium term

Examining greater use of technology to assist with

container examination by the border protection

agencies


Committee

Medium term


Table 5: Measures to improve the scheduling and utilisation of container truck movements



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Expanding road freight corridors in metropolitan Sydney

Program initiative Stakeholder(s) Timing

Consideration of proposals regarding an eastward

extension of the M4 Motorway


Traffic Authority

Ongoing

Consideration of proposals regarding enhancements

to the M5 Motorway


Traffic Authority

Ongoing



Table 5: Measures to improve the scheduling and utilisation of container truck movements (continued)

5.4. Efficiency Indicators

The effectiveness of the port freight logistics

framework can be monitored though the development

of key indicators to determine any improvements in

the efficiency of the movement of freight. A number of

draft indicators have been identified for port operations,

rail transport, road transport and empty container parks

to provide some information on progress made in the

movement of containers (Table 6). The indicators for

2001 and 2006 are from actual aggregated information

provided by the stevedores. The indicators for 2011 and

2016 are estimated values that have been developed

through projections by Sydney Ports relating to

container throughput and may be reviewed due to

changing circumstances. Information on the indicators

will also be compiled by Sydney Ports on an

annual basis.


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Table 6: Indicative Sydney Ports freight logistics efficiency indicators at Port Botany (Table to be reviewed)

Indicator 2001 2006 2011 2016

Portope

rations

Crane rate (lifts/hour) 24.8 26.8 28.0 30.0

Ship rate (lifts/hour) 40.5 46.5 48.0 50.0

Total containers (TEU) 890,000 1,440,000 1,750,000 2,200,000

Import containers (TEU) 475,000 740,000 962,500 1,210,000

Export containers (TEU) 415,000 700,000 787,500 990,000

20 containers (per cent) 50 per cent 40 per cent 35 per cent 35 per cent

40 containers (per cent) 50 per cent 60 per cent 65 per cent 65 per cent

Empty export containers

(per cent of all containers)


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Table 7: Development Consent Conditions for the Port Botany third terminal expansion

Development Application

DA-494-11-2003-I, lodged by

Sydney Ports Corporation with

the Department of Planning

on 26 November 2003, for the

construction and operation of

a new container terminal and

associated infrastructure

Stage 1 development consent

approved by the Minister for

Planning on 13 October 2005

A2.4 Prior to the commencement of construction, the applicant shall prepare,

and submit, for the approval of the Minister, a Port Freight Logistics Plan which:

a) Examines existing container freight logistics and identifies areas for

improvement in the efficiency of container movements and rail interfacing

through operational, technological or administrative changes;

b) Proposes and develops an implementation program to maximise the use of

rail infrastructure;

c) Proposes and develops measures to improve the scheduling and utilisation ofcontainer truck movements so as to minimise the number of trucks attending

the port and truck turnaround times; and

d) Proposes an implementation program (including deliverable milestones and

efficiency indicators) so as to ensure efficient and advanced port freight

logistics consistent with best practice.

The plan must be submitted and approved by the Minister prior to the

commencement of construction.

Development Application

DA-494-11-2003-I, lodged by

Sydney Ports Corporation with

the Department of Planning

on 26 November 2003, for the

construction and operation of

a new container terminal and

associated infrastructure

Stage 2 development consent

approved by the Minister for

Planning on 22 August 2006

A1.4 The scope of the Port Freight Logistics Plan required under condition A2.4

of the development consent granted by the Minister for Planning on 13 October

2005 with respect to development application DA-494-11-2003- I shall be

expanded to also address the following matters:

a) Consideration of the Botany Yard and any constraints on the yard with respectto capacity or timing of any necessary upgrade and/or expansion works;

b) The need and timing of any necessary upgrades and/or expansion works to

provide dedicated departure and arrival roads for the Botany Yard; and

c) A production line arrangement of separate shuttle services to each stevedore

siding for future operations, or other appropriate measure.


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Disclaimer The information contained in this publication is produced in good faith and according to the knowledge available

to Sydney Ports Corporation at the time of publication. No warranty is given or representation made as to its accuracy..

Sydney Ports Corporation Port Freight Logistics Plan June 2008

Level 8, 207 Kent Street

Sydney NSW 2000, Australia

PO Box 25

Millers Point, NSW 2000, Australia

Telephone 61 2 9296 4999

Facsimile 61 2 9296 4742

[email protected]

www.sydneyports.com.au

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