Port of Brisbane Corporation Limited Annual Report 2008/2009

Contents IFC About this report Describes the scope, boundaries and readership of this report. IFC our VISION, MISSION AND VALUES 1 our highlights A snapshot of our financial, operational, social and environmental performance during 2008/2009. 2 our history A look at some of the most significant corporate events that have shaped our organisation’s history. 3 our organisation Our business, responsibilities, stakeholders, and structure, including an introduction to our Board of Directors and Executive Team. 10 Chairman and CEO’s Report Our Chairman, David Harrison, and Chief Executive Officer, Jeff Coleman, discuss our major achievements and key results for the year and our strategies for the port’s future. 14 our key corporate strategies Our performance against six core business strategies, objectives and targets as outlined in our Corporate Plan and Statement of Corporate Intent. 18 our operational performance Our performance that relates to operational aspects, including trade, port efficiency, and infrastructure and property development. 21 Case study: Grain trade soars after rains return 23 Case study: Expert panel validates trial findings 30 our social performance Our performance that relates to our people, safety programs and community engagement. 33 Case study: Portcareers – a smart choice

40 our environmental performance Our performance that relates to the dredging and environmental monitoring we’ve undertaken, our energy use and greenhouse gas emissions. 51 Case study: Moreton Island oil spill – part of the clean-up team

54 Corporate governance An overview of our corporate governance processes. 62 our Economic and Financial Performance Our General Manger Finance and Business Services, Darryl Mutzelburg, outlines our economic impact, financial review and financial results for 2008/2009. 67 Financial year in review 68 Financial performance 5-year analysis 72 Income statement 73 Balance sheet

74 Independent Limited Assurance Report 76 grI Content Index 80 Index, including table, graph and diagram index 82 gLossary, FINANCIAL DEFINITIONS and abbreviations 84 Port of Brisbane Map 86 Contact Us 87 Feedback form 88 our Financial Reports (on CD) 2 | Port of Brisbane Corporation Limited Annual Report 2008/2009 About this report The Port of Brisbane Corporation Limited For ease of reference we have included a We conducted interviews and workshops to Annual Report is a summary of our corporate glossary of terms, a list of abbreviations, determine a list of material stakeholder issues performance during the 2008/2009 financial an index, and a GRI Content Index at the and applied the AA1000 five-part materiality year. This year we combined our financial back of this volume. test to assess the identified issues. The test and non-financial reporting into one volume, is a mechanism to assess the materiality This report, past reports and our SCI with an accompanying CD, to provide a of an issue based on: policy-related can be accessed at www.portbris. concise overview of our performance and performance, short-term financial impacts com.au/corporation/publications. commitment to the sustainability of the and legal compliance, peer-based norms, Port of Brisbane. Hard copies can be requested from: stakeholder concerns and behaviour, and Corporate Relations societal norms. Having established a broad The report outlines our operational, Port of Brisbane Corporation list of issues through this approach we then environmental, social, economic and financial Locked Bag 1818 prioritised these through an internal workshop performance against key business strategies, Port of Brisbane QLD 4178 that considered each issue for its known objectives and targets set out in the Corporate Australia importance to both internal and external Plan and Statement of Corporate Intent (SCI), or telephone +61 7 3258 4734. stakeholders. as well as the challenges ahead. Sustainability and materiality Of the 15 issues identified in the materiality The six key business strategies addressed in We are committed to improving the assessment, the five top issues were: this report are to: transparency and accuracy of our reporting, • dredging – the impact and long-term • accelerate and plan for trade and and this year referred to the AA1000 sustainability of dredging activities revenue growth AccountAbility Principles Standard (2008) • port access – water- and land-side access • deliver on our infrastructure projects (AA1000APS 2008) and the Global to the port now and into the future • facilitate improved port access Reporting Initiative Sustainability Reporting • environmental performance – impacts of • make strategic investments and undertake Guidelines (GRI G3 Guidelines) to inform port operations on ecosystems, industry non-trade activities our report structure and the management of and communities surrounding the port • drive port efficiency and sustainability sustainability within our business. • port efficiency – managing the • support people, their learning and growth. The AA1000APS 2008 provides a framework competitiveness and efficiency of the port The report includes our corporate for us to manage our sustainability • global financial crisis – impact on port governance – the systems by which the performance, develop strategies and business activities and its tenants. organisation is directed and managed – and plans, and to engage with and respond to We engaged Ernst & Young for the fourth introduces the members of our Board and our stakeholders. While our sustainability consecutive year to conduct limited Executive Team. practices may not yet be fully integrated assurance in relation to our report. This throughout the organisation, we value The full Annual Financial Report is published year, for the first time, Ernst & Young will the benchmarking provided by these on an accompanying CD. The Financial conduct their assurance in accordance with internationally recognised standards to Review, which provides an annual and five AA1000APS 2008 and the International improve the sustainable performance of the year overview of our key financial objectives Standard on Assurance Engagements organisation. and targets along with our Income Statement ISAE 3000. Ernst & Young’s independent and Balance Sheet is available on pages 72-73. For the first time, this year Ernst & Young will assurance statement contains their Readership provide conclusions relating to the nature conclusions in relation to the Principles of and extent of our adherence to the three Inclusivity, Materiality and Responsiveness The report aims to provide accurate information core Principles within AA1000APS 2008: as defined in AA1000APS 2008, together to meet the needs of our stakeholders, that is, Inclusivity, Materiality and Responsiveness. with their conclusion in relation to the all individuals and groups who are affected by accuracy and completeness of performance or have an interest in our activities. Our environmental, social and economic information for three material areas. performance is prepared with reference to These include, but are not limited to: the GRI G3 Guidelines. A GRI Content Index This assurance is limited to three material • our employees is included in the back of the report to show issues that we selected – dredging, • importers and exporters how we have reported against the G3 Profile community, and greenhouse gas emissions. • port operators Disclosures and Performance Indicators. Dredging was the top material issue identified • freight forwarders We have self-declared our application level in the materiality register. Community – • commercial partners as "C". interaction and support to local community • suppliers and responses to publicly raised grievances During the reporting period we undertook • government departments was the top issue identified by our established a materiality assessment to determine • shareholders/owners Community Consultative Committee. We those issues that were most relevant in • shipping lines and agents have reporting obligations under the National 2008/2009 to the concerns and interests • transport companies Greenhouse and Energy Reporting Scheme, of our stakeholders. The purpose of the • the community and therefore greenhouse gas emissions assessment was to determine three key focus • the media. was the third material issue selected for areas for assurance, as well as to inform our assurance. Both community and greenhouse future sustainable development strategy This year, with the Queensland Government’s gas emissions were identified in the and reporting. announcement to privatise the Port of Brisbane materiality register. Corporation, we expect a new group of Materiality is a concept that looks at Port access and port efficiency are two key stakeholders will take an interest in this report. determining and reporting on those issues business objectives, and are addressed in the that our stakeholders see as important, or of We are committed to open and accountable operational section of the report. The impact concern, in relation to our operations. governance and welcome your feedback on of the global financial crisis on trade is our reporting. A feedback form for the report discussed in the operational section, and is located on page 87. our environmental performance in the You can also send your feedback environmental section of the report. electronically through our website at www.portbris.com.au/contact. Our Vision Our Values To be Australia’s leading port: here for Safety first Deliver on our promises the future. Safety will be our priority in everything that We are committed to achieving we do. the outcomes that we promise our stakeholders. Our Mission Valuing people To grow trade through the port in a We will operate on the basis of teamwork, Sustainable outcomes sustainable manner, which optimises mutual trust, respect and integrity, while We consider the financial, environmental stakeholder satisfaction and shareholder maximising opportunities for personal and and social impacts of what we do, returns, by: professional growth and development. and commit to activities that benefit the Queensland economy, our natural • driving port efficiency Customer focused environment and the wider community. • promoting strategic investments in a We will act professionally, enthusiastically, competitive environment and be motivated to provide the highest Continuous improvement • adopting leading planning principles levels of customer service to both our We will improve all aspects of our activities, and management systems internal and external customers. through innovation, learning, and sharing • working cooperatively to ensure a safe and management of knowledge. Commercially astute and secure port environment We will act commercially by focusing • providing world-class infrastructure on optimising shareholder returns and • behaving at all times in line with our managing our business risks. corporate values.

RESILIENCE noun. the ability to recover quickly from change; recovering strength quickly; buoyancy

DIVERSITY noun. the state or fact of being diverse; difference; variety; a point of difference 4 | Port of Brisbane Corporation Limited Annual Report 2008/2009 OUR HIGHLIGHTS

Result % change Financial $’000 from 07/08 This year, despite the impact Total revenue 677,372 12% of the global financial crisis, we continued to grow our Net profit 455,985 4% revenue and profits due to our Dividend provided for or paid 339,065 65% strong total trade performance, Capital expenditure 155,638 -13% growth in rental income, the sale Total assets 2,732,785 23% of non-core properties, and the final sale of shares in Brisbane Airport Corporation Holdings. See page 67 Operational People Environment Total trade increased by 5.6% Our staff numbers increased by We completed an inventory of air to reach a record 31.9 million nearly 15% from 337 in 2008 to emissions from ships in the port. tonnes, due to strong 387 in 2009 due to recruiting See page 50 performances in agricultural in security, operations and Our Climate Change and coal exports. See page 19 hospitality. See page 31 Commitment includes targets We completed a major ground- We recorded three Lost Time to minimise air pollution and improvement trial at the Future Injuries (LTIs), down from greenhouse gas emissions, and Port Expansion (FPE), and seven the previous year. We improve resource efficiency. appointed a panel of world are implementing a risk-based See page 42 renowned geotechnical experts approach to address the number Our Environmental Management to provide extra insights. of injuries sustained by our staff System was re-certified against See page 23 on the job. See page 32 ISO 14001:2004 with no Patrick opened its new Berth In January 2009 we launched non-conformances – the third 10 Autostrad® Terminal, and we a port careers portal for time since its implementation completed construction of our businesses at the Port of in 2000. See page 42 new General Purpose Berth. Brisbane. See page 33 We are the main sponsor for the See page 22 Our staff E-Teams are driving first community-based Mangrove We achieved key milestones sustainable behaviour in the Watch Program in Moreton Bay. See page 48 in the first stage of our Port office and at home. See page 37 Productivity Strategy, including the implementation of a new dangerous goods tracking system. See page 26

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 1 OUR HISTORY 1971 responsibility for of Brisbane. the Port the Queensland Government assumed separation from New South Wales, and 1859 part of the Renewingpart Queensland Plan. announced that PBC would sold be as 2009 and Investments Commission. in 2007, listed with the Australian Securities subsequently acompany became GOC PBC of Brisbane Corporation (PBC). called the Port Corporation (GOC), Government astatutory became Owned 1994 a commercially oriented organisation. step first towards developing into the port of Brisbane Authority.Port This was the authority,declared astatutory called the 1976 and Marine Works, and Administration. of Brisbane, MarineHarbours Port Affairs, andHarbours Marines into four divisions – decided to break of the Department The Port of Brisbane division The Port was The Port of Brisbane Authority of Brisbane Authority The Port The Queensland Government Queensland was granted The Queensland Government OUR ORGANISATION

PBC has six main divisions, which are responsible for ensuring that we meet our corporate objectives. A General Manager, who is also a member of our Executive Team, leads each division.

Queensland Community Shareholding Ministers The Honourable Andrew Fraser MP, Treasurer and Minister for Employment and Economic Development The Honourable Rachel Nolan MP, Minister for Transport Our Board of Directors Chairman, David Harrison Deputy Chairman, Catherine Sinclair Professor Ted Brown AC Peter Lancaster Peter Low OAM Susan Rix Glen Toll Loftus Harris Bill Guest Our Management Team Chief Executive Officer, Jeff Coleman General Manager Finance and Business Services, General Manager Port Development, Gerry Johnstone Darryl Mutzelburg Senior Manager Infrastructure Planning and Chief Engineer, Acting General Manager Business Development, Bill Tranberg Mark Neander Senior Manager Dredging and Channels, Peter Nella Manager Financial and Risk Management, John Clifton Senior Manager Reclamation and Land Development, Manager Financial Operations, Cyril Stringfellow Arie Geelhoed Manager Information Technology, Tony Marles Manager Dredging Operations, Peter Rumball Manager Strategic Projects, Iva Dinolova Manager Dredging TSHD Brisbane, Gabriel Ooge and Manager Commercial Services, Noel Ryan Manzurul Islam Manager Engineering and Construction, Gary Bendell General Manager Corporate Services, Michael Snell Acting Manager Maintenance, Mansoor Abul Senior Manager People and Culture, Cathy Knight Manager Infrastructure Planning, Mansoor Abul Manager Employee Relations, Peter Ashton Manager Infrastructure and Sustainable Engineering, Manager Learning and Organisational Development, Robert Hancock Naomi Walton Manager Spatial Data Services, Warren Wood Manager Corporate Information, Marie Walker Manager Geographic Services, Chris Overell Manager Safety and Quality Systems, Michael Menso Manager Channels and Support Craft, John Watson General Manager Planning, Environment and Community, Manager Landside Projects, Robert Nave Rick Morton Manager Waterfront Projects, Tony Dunk Manager Environment, Brad Kitchen Manager Reclamation and Land Development, Peter Boyle Sustainable Business Manager, Sue Koreman Acting Manager Corporate Relations, Rosie Field General Manager Port Operations, Peter Keyte Manager Planning, Jason Sprott Senior Manager Operations, Alan Turner Manager Property Administration, Tom Smith Manager Logistics, Andrew Rankine Manager Restaurant and Venues, Warwick Kahl Manager Security Services, Wayne Taratoa Manager BMT, Barry Martin General Manager Northshore, Harbours and Bundaberg Manager Port Efficiency, Rowena Routh and Company Secretary, Jenny Ryan Manager Northshore Property, Michael Moore Manager Boat Harbours, Rosalind Perry Manager Bundaberg, Jason Pascoe

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 3 We are committed to ensuring the sustainable growth of the port and our business by Where we are What we do balancing economic and Situated on the southern side of the Our primary role is to facilitate trade operational performance mouth of the Brisbane River, just growth through the commercial 24km from the city’s Central Business management of an efficient and with environmental and District, our port has world-class cargo- customer-focused port. To this end, handling and warehousing facilities. we provide the necessary infrastructure social responsibility. It also provides an interface between through the sustainable planning and rail, road and sea transport at the development of new facilities, and the Who we are Brisbane Multimodal Terminal (BMT). maintenance and management of Over the past 20 years, investment in existing facilities. We are also responsible The Port of Brisbane Corporation (PBC) infrastructure and assets has totalled for the security and protection of the is a Government Owned Corporation, over $1.5 billion. port's infrastructure and assets, and the established on 1 July 1994 under the provision of risk-based security services. Government Owned Corporations Act Other landholdings and facilities are 1993 (GOC Act). We manage one of located at various sites upriver, including We lease and manage our land for Australia’s fastest-growing container Port West at Lytton, Hemmant, Colmslie, port-related purposes. Under the ports, with the Transport Infrastructure Pinkenba, Eagle Farm, and Hamilton. Integrated Planning Act 1997, PBC is the Act 1994 providing the framework for We also manage three boat harbours assessment manager for assessing and our responsibilities. On 1 July 2007, in Moreton Bay, along with some public approving developments on strategic PBC changed from a statutory to a moorings and legacy wet leases in the port land. company GOC, listed with the Australian City Reach of the Brisbane River. We are also responsible for maintaining Securities and Investments Commission, See map on page 84. navigable access to the port for becoming the Port of Brisbane commercial shipping. For this purpose, Corporation Limited. Our boundaries we have our own dredging fleet, We have two shareholding Ministers – The port’s limits extend geographically including an ocean-going dredger, the the Treasurer and Minister for Employment from Caloundra to the southern tip Brisbane. The Brisbane also undertakes and Economic Development, Hon Andrew of Moreton Island. They include the dredging at other Queensland and Fraser MP, and the Minister for Transport, shipping channel, which is dredged Australian ports under commercial Hon Rachel Nolan MP. to a depth of 15m below LAT (Lowest contract arrangements. Astronomical Tide). Our management We do not provide stevedoring services, We are a government owned entity, responsibility extends 16km up the towage services, or transport operations but operate on a commercial basis Brisbane River to Breakfast Creek, and (other than the BMT), nor do we control and in a competitive environment, to also includes the legacy wet leases in the shipping movements. We do seek to ensure that we meet the objective of City Reach of the Brisbane River. corporatisation under the GOC Act – actively influence the performance of ‘to improve Queensland’s overall In total, we have approximately 2,045ha these service providers, as they are economic performance’. of wet and dry land, of which 71% essential elements of an efficient and is designated for industrial use, 6% successful port. The Bundaberg Port Authority (BPA) for commercial use, and 23% for Our stakeholders merged with PBC on 1 October 2007. environmental or community purposes. Bundaberg Port Corporation Pty Ltd Our values focus on providing (BPC), is a wholly owned subsidiary exceptional levels of customer service, of PBC. and delivering on the promises we make to our stakeholders. Our stakeholders On 2 June 2009, the Queensland cover a range of sectors, and are Government announced a restructure detailed in the following table: of their asset portfolio, which included the sale of PBC. We are currently preparing the organisation for Business customers Government stakeholders Community stakeholders privatisation and have appointed an • importers Federal: • environmental groups internal privatisation team to assist • exporters • Department of Infrastructure, Trade, • community groups Queensland Treasury during the sale. • freight forwarders Regional Development and Local • schools and universities • customs brokers Government (DITRDLG) • visitors to the port BPC will remain a state asset and is not • transport companies • local and wider part of the sales process. State: • port operators • our shareholding Ministers community • shipping agents • media BPC will be transferred to Gladstone • Department of Transport and Main • shipping lines Roads (DTMR) Ports Corporation (GPC) in 2009/2010, • stevedores • Maritime Safety Queensland (MSQ) and we will work with both BPC and • suppliers • Department of Environment and GPC on a transfer plan. Resource Management (DERM) • Queensland Treasury Local: • Brisbane City Council • Moreton Bay Regional Council

4 | Port of Brisbane Corporation Limited Annual Report 2008/2009 I O N T

Our people Port limits A

As at 30 June 2009, we employed BOARDING POINT S 387 people (378 full-time equivalent) Caloundra in a variety of professional, technical, trade, hospitality, and administrative roles. We have 12 different workplaces: Port Office (our head office), Port of PORT LIMITS Brisbane Operations Base, Reclamation Site Office, Land Care Site Office, the Bribie Brisbane, BMT, Visitors Centre, Jetty Island

Kiosk at Manly Boat Harbour, Port ORG ANI Central Café, Northshore Riverside Café, the Port of Bundaberg and our corporate office in the city. Moreton Island Some of our employees are represented by trade unions, including: the Maritime OUR Union of Australia, Australian Maritime MORETON BAY Officers Union, and Australian Institute of Marine and Power Engineers. We are committed to providing a safe and healthy environment for our CHANNEL employees, and place a high priority on reducing the number of LTIs. We encourage the development of our staff through training and professional PORT OF development programs. BRISBANE FACILITY See Our employees on page 31. Our business risks North Stradbroke We actively manage our risks from both Island financial and non-financial perspectives. Our business risks include, but are not meetings. At all of these, business Our community limited to: Brisbane City risks are discussed and appropriate Our immediate neighbours include the • competition (particularly from the management strategies are developed. Brisbane bayside suburbs of Wynnum major east-coast ports) See Strategic risk management and quality and Manly, the river suburbs of Hemmant • national and international market systems on page 59. on the southside of the Brisbane River, forces and Pinkenba and Hamilton on the Our environment • regulatory compliance northside. However, the influence of our • environmental management The Port of Brisbane adjoins the Moreton activities extends to the port’s hinterland • maintaining efficient access Bay Marine Park, which is an area areas of southern Queensland and • customer satisfaction of high ecological and conservation northern New South Wales, which • underperformance value. Many of the species using the produce the majority of agricultural • an ageing workforce park are endangered and protected by goods exported through the Port • our ability to attract, retain, and international treaties. of Brisbane. appropriately remunerate The marine park contains a variety We support our local and wider experienced staff. of habitats, some of which support communities through sponsorships and Ongoing risk identification and review of mangroves and seagrass vegetation. donations, industry partnerships and the internal processes continues to be a key These, in turn, provide important nursery provision of educational opportunities. focus of our day-to-day operations. This and feeding habitats for a variety of fish We also provide free school and process begins with the annual review of and crustaceans, many of which are of community port tours, through our our major business risks at a corporate direct fisheries value. Visitors Centre. level during the production of our We undertake a wide range of See Community and stakeholders on page 36. five-year Corporate Plan and 12-month monitoring to measure our environmental SCI. It continues throughout the year performance and ensure that potential with strategic management workshops, environmental impacts from our weekly Executive Team meetings, and operations are minimised. regular Board and Board Committee See Our environmental performance on page 41.

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 5 OUR BOARD OF DIRECTORS

David Harrison Catherine Sinclair Professor Ted Brown Peter Lancaster Peter Low

Our Board currently comprises nine Deputy Chairman Peter Lancaster HDDT (UWS), FAIFST, non-Executive Directors, who are Catherine Sinclair BSc, MA, FAICD, MRACI, FAIM, AAICD appointed by the Governor in Council on FAIM, CMC Appointed from 1 July 2005 until the recommendation of the shareholding Appointed from 1 July 2001 until 30 June 30 September 2008; re-appointed from Ministers, in accordance with the GOC Act. 2005; appointed as Deputy Chairman 1 October 2008 to 30 September 2011. in 2005 until 30 September 2007; The criteria for membership of the Board are Peter is a member of the Audit and Risk re-appointed as Deputy Chairman on in accordance with the GOC Act: namely, Committee. 1 October 2007 until 30 September 2010. that in appointing a person as a Director, Peter is founder and Chairman of food the Governor in Council must have regard to Catherine is Chairman of the Planning, ingredients manufacturer, Food Spectrum. that person’s ability to make a contribution Construction and Environment Committee. He is a National Councillor of the Australian to the GOC’s commercial performance and Catherine is a Director of The Consultancy Industry Group, a member of the Premier’s implementation of its SCI. Directors are Bureau Pty Ltd. She is an accomplished Smart State Council, the Queensland appointed for a term of not more than five leader in the provision of a broad range of Government’s Manufacturing Leaders years. The Board comprises: management and consultancy services to the Group, and the University of Queensland’s Chairman public, statutory and business sectors. She School of Land and Food Sciences Advisory Committee. He is President of the Australian David Harrison FAICD is also a Director of the Southern Regional Institute of Food Science and Technology. Appointed as Deputy Chairman from 1 July Water Pipeline Company and the Queensland 1999 to 2003; re-appointed in 2003 until Bulk Water Transport Authority, and a Peter is also a board member of Clover 30 June 2006; appointed as Chairman on Councillor of the Royal National Agricultural Corporation Ltd, and Chief Executive Officer 1 July 2005 until 30 September 2007; and Industrial Association of Queensland. and Director of Numega Ingredients Pty Ltd. re-appointed as Chairman on 1 October 2007 Professor Ted Brown AC, BE, MEngSc, Peter Low OAM until 30 September 2009; re-appointed as PhD, DSc (Eng), FREng, FTSE, FIE Aust, FIMMM, Appointed from 1 July 1999; re-appointed in Chairman from 1 October 2009. MICE, MASCE, MAICD 2003 until 30 June 2005; re-appointed Appointed from 1 July 2005 until David is Chairman of the People and Culture in 2005 until 30 September 2007; 30 September 2007; re-appointed from Committee and a member of the Audit and re-appointed from 1 October 2007 until 1 October 2007 until 30 September 2009; Risk Committee. 30 September 2009. re-appointed from 1 October 2009. David has been a non-Executive Company Peter is a member of the Planning, Ted is a member of the Planning, Construction Director of a diverse range of companies Construction and Environment Committee. since 1987. He is currently Chairman of and Environment Committee. Peter has over 31 years experience in retail Australia TradeCoast, Chairman of QMI Ted has extensive international experience and wholesale business. He is Managing Solutions, Chairman of Industry Capability as a researcher, teacher, consultant and Director of Kinellar Pty Ltd, a business Network (QLD), and a Director of Queensland writer on rock mechanics and engineering. consultant, a Member of the Queensland Investment Corporation and Brisbane Airport He is a Senior Consultant with Golders China Council, and Honorary President of the Corporation. David is also Chairman of the Associates Pty Ltd, and undertakes Queensland Chinese Forum. Mater Prostate Cancer Capital Campaign research for the University of Queensland’s Committee. Sustainable Minerals Institute. He is a former In 2003, David was awarded the Centenary Dean of Engineering and Senior Deputy Medal for distinguished service to industrial Vice Chancellor of the University. Ted has relations, following a career of 28 years. been a Director of several public sector and technology transfer companies continuously since 1991.

6 | Port of Brisbane Corporation Limited Annual Report 2008/2009 TORS C RE F DI

Glen Toll Loftus Harris Bill Guest Susan Rix D O Glen Toll B Comm, LL.B (Hons) Bill Guest CMILT Board changes

Appointed from 23 August 2007 until Appointed from 1 October 2007 until Changes to the Board occurred as follows: R 30 September 2010. 30 September 2009; re-appointed from • Sue Palmer (appointed from 1 July 2003) A 1 October 2009. Glen is a member of the People and Culture left the board on 3 March 2009. Committee. Bill is a member of the Planning, Construction • Susan Rix was appointed as a Director from O and Environment Committee. Glen is a partner with Baker O’Brien Toll 7 May 2009. Solicitors, and his practice focuses on Bill has over 50 years experience in the See our Corporate Governance section property and commercial legal issues. He was shipping industry. He held senior positions on page 54 or visit our website for more appointed as a Director of the Bundaberg with P&O for most of this time and was part of information on our Board of Directors. Port Authority on 1 July 1999, and as the feasibility team that, in 1966, commenced Chairman in July 2001. He joined PBC as a the study to move from conventional to Changes to the Board as of 1 October 2009:

Director following the official merger with container shipping in Australia. B OUR • Glen Toll (appointed from 23 August 2007) the BPA on 1 October 2007. In 1982, he moved from Sydney to Brisbane, left the Board. Glen has a strong interest in local community where he spent 13 years as Queensland • Peter Low (appointed from 1 July 1999) affairs and has previously served as a Director State Manager of P&O Containers. In 1997, left the Board. of the Bundaberg Race Club and Chairman of he joined Shipping Australia Ltd as the Bundaberg Rugby League judiciary panel. Queensland Secretary. Bill is a member of the Chartered Institute of Logistics and Transport. Loftus Harris AM BA FAICD Appointed from 23 August 2007 until Susan Rix B. Fin Admin, FCA, GAICD 30 September 2010. Appointed from 1 July 1999 to 30 June 2003; re-appointed 30 June 2003 until 1 July 2005. Loftus is a member of the People and Culture Appointed 7 May 2009 until 30 September Committee. 2012. Loftus has extensive experience in Susan is Chairman of the Audit and Risk government, international trade and economic Committee. development. He was formerly Director General of the NSW Department of State Susan is a Chartered Accountant with and Regional Development; Coordinator more than 20 years experience. As a General for Queensland; Director General of partner at BDO Kendalls she provides the Queensland Department of the Premier, broad-based accounting and consulting Economic and Trade Development, and of advice to businesses. She specialises in the Department of Tourism, Small Business Corporate Governance, Family Councils, and Industry. He worked internationally as an Succession Planning, Taxation Structures Australian Trade Commissioner for 15 years. and Restructuring. Loftus is a Director of: Delta Electricity; Susan is currently a Director of Queensland National Information and Communications Rail and also Director, Treasurer and former Technology, Australia; the Australian Institute Chairman of the Cerebral Palsy League of of Export; the United States Study Centre; Queensland. She is a Queensland Council Chifley Business School; and the Garvan Member of the Australian Institute of Research Foundation; and is on the national Company Directors and a Director of QUT advisory board of L.E.K. Consulting. He is also Enterprise Holdings Pty Ltd. Susan also sits Trade Queensland’s Special Representative on the Audit and Risk Committee for the to the Middle East and India. Department of Transport and Main Roads. For ten years she held the position of Director with the Queensland Rural Adjustment Authority, assisting rural and regional Queensland.

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 7 Our executive team

Jeff Coleman Peter Keyte Gerry Johnstone Michael Snell Rick Morton

The nine members of our Executive Team Peter Keyte Major projects for his division in the coming are responsible for guiding the port’s future General Manager Port Operations year will include: through the development of key strategies, Peter is responsible for maintaining and • completion of the General Purpose Berth business plans and policies. improving port operations for shipping and and back-up terminal area Appointments of CEOs and Senior Executives landside services, the operation of the BMT, • ongoing land preparations for Terminals are made in accordance with the GOC Act emergency response and maritime security. 11 and 12 and Queensland Treasury's Government Peter has over 28 years national and • commencement of design work for Owned Corporations Governance international experience in the shipping and wharves 11 and 12, to be completed by Arrangements for Chief and Senior Executives stevedoring industry. He is a qualified ship mid-2010 (February 2009). Other members of the planner, and has completed certificates in • design and construction of the duplicate Executive Team have been appointed by the port and maritime security. He is Chairman Captain Bishop Bridge and associated Chief Executive Officer, on the basis of the of the Queensland Port Association major road upgrades, due for completion additional expertise and experience that Operations Group, and an active member by end of 2010 they provide. of Ports Australia and Shipping Australia • development of Stage 1 of Port West, including road works, by mid-2010 The Executive Team meets weekly to ensure Ltd committees. Peter is also a member of • construction of the bridge at Wallace Creek that there is cohesion in the management of the State Committee for the National Plan – (Bundaberg) PBC’s day-to-day affairs. Pollution of the Sea, and the nominated Port Security Officer for Brisbane. • completion of the New Port Office by Jeff Coleman BBus(Acctg), CPA, AICD mid-2010 In the coming year, Peter’s team will continue Chief Executive Officer • completion of vacuum and wick drain to work with stakeholders to further improve Jeff is responsible to the Board for the ground improvements in the logistics the efficiency and safety aspects of all port leadership and performance of PBC. He precinct adjacent to Bishop Drive, by the operations. They will focus on integrating joined as General Manager Finance and end of 2010. IT logistics solutions, and improving the Information Systems in September 1997, movement of cargo through the BMT and Michael Snell M Soc. Sc and was appointed Chief Executive Officer the ports supply chain links. They will also General Manager Corporate Services in May 2002. ensure that security strategies and initiatives Michael is responsible for Corporate Jeff is committed to creating a culture across meet best practice compliance with national Services, which covers employee relations, the organisation that values people, and and international regulations, and set new organisational development, corporate drives a commercial and customer-focused standards for Critical Infrastructure Protection information, health, safety and quality organisation, with a strong commitment to and Emergency Response in the port. programs. the future sustainability of the port. He is Gerry Johnstone He has extensive experience in the Australian committed to balancing PBC’s strategies, mining and energy industry, as well as the and ensuring strong financial, environmental General Manager Port Development government owned corporation sector. and social performance, as well as planning Gerry is responsible for the planning, Before joining PBC, Michael was the General the port to efficiently meet the demands of its construction, and maintenance of port Manager People and Communication at growing trade. facilities and infrastructure, and for dredging and reclamation activities. Tarong Energy Corporation. He has also held Jeff is a director of Australia Trade Coast various senior management roles for Duke Limited, and is Chairman of Ports He has wide-ranging experience in port Energy International, Epic Energy and Robe Australia Limited. operations, port development and industrial River Iron Associates, which involved working relations, and has postgraduate qualifications at remote sites in the Northern Territory and in management. Western Australia. The divisional focus for the year will include strengthening our “Safety First” program, staff retention and engagement strategies, leadership performance, and supporting the privatisation program.

8 | Port of Brisbane Corporation Limited Annual Report 2008/2009 am e te ut iv c

Rick Morton Darryl Mutzelburg Jenny Ryan Bill Tranberg Mark Neander

Rick Morton BSc, MSc, PhD The Finance and Business Services division’s Mark Neander General Manager Planning, key activities for the year ahead will include Acting General Manager Business Environment and Community refining our risk management system, and Development upgrading a number of IT systems, including Rick is responsible for managing Mark is responsible for developing business the main server. development assessment, property initiatives and strategies to increase trade exeur administration and planning for PBC land, Darryl will also play a key role as a member of growth, optimising development of PBC’s ensuring the environmental impacts of our internal sales team, which will guide PBC landholdings, trade marketing, and ensuring a O all of our operations are minimised, and through the privatisation process. customer-focused approach to business. that sustainable practices form part of the Jenny Ryan BRTP Mark has 22 years of in-depth project port’s operations. He is also responsible for management experience in the fields of corporate and community relations, and our General Manager Northshore, commercial development and construction. Visitors Centre and hospitality venues. Harbours and Bundaberg and Company Secretary He has been with PBC for nearly 10 years. Rick has over 20 years experience in coastal Jenny is responsible for the ongoing He started as a Property Project Manager planning, development and environmental improvement and development of PBC's and progressively took on more senior roles management. He chairs both the Ports non-port assets, including its landholdings in the business development and property Australia and Queensland Ports Association in Northshore Hamilton, and the recreational areas, before being appointed Acting General environmental and sustainability committees. boat harbours, as well as the operation and Manager Business Development in June 2009. Additionally, Rick chairs PBC's Community improvement of the Port of Bundaberg. Consultative Committee. This year the Business Development division The focus for her division over the next will be focused on the bulk land optimisation Over the next year, Rick’s team will focus twelve months will be on the continued strategy; working with customers to increase on ensuring the port continues to develop operation and improvements to the boat trade through the port; progressing the with minimal environmental impacts harbours; progressing the delivery of land at marketing of available land and/or facilities at and incorporates the latest commercial Northshore to the market, as well as working the port's property estates; and optimising the sustainability initiatives. Particular emphasis with the Urban Land Development Authority use of, and return on, land at the port. will be placed on adopting our new Port to manage infrastructure delivery to facilitate Development Code, to ensure our planning Executive Team changes further development; and the transfer of and commercial development remains at the • In September 2008, Senior Manager Bundaberg operations to GPC. Jenny will also industry forefront. Our property portfolio will Corporate Relations and Company play a key part in preparations for the port’s continue to be rationalised and community Secretary, Nikki Wood, left PBC. privatisation, particularly from a corporate and media engagement processes improved. • In July 2009, General Manager Corporate governance perspective. A new focus will involve enhanced promotion Services, Bill McElwaine, retired after of our Visitors Centre to local companies for Bill Tranberg BE, PhD, GradDipBus(Mgt) 43 years at PBC. business meetings, training and dining. Senior Manager Infrastructure • In June 2009, Michael Snell was appointed General Manager Corporate Services. Darryl Mutzelburg BBus, MComm, CPA Planning and Chief Engineer Bill is responsible for the technical oversight • In June 2009, Mark Neander was General Manager Finance and appointed Acting General Manager Business Services of all of our design and construction activities, and has been involved with the development Business Development. Darryl is responsible for financial operations, of the port for 28 years. Next year, Bill and • In July 2009, Senior Manager Corporate financial and management reporting, the engineering team in Port Development Relations and Company Secretary, Gina operational Key Performance Indicators, will be focused on major infrastructure Bozinovski, left PBC, and Jenny Ryan was IT, risk management, trade and economic works at the port, particularly the Berths appointed Company Secretary. forecasting, pricing and corporate planning. 11 and 12 development and further land See our Corporate Governance section on page 54 He has more than 25 years commercial development works at the northern end of for more information on the Executive Team. experience in the transport and banking Fisherman Islands. sectors. Bill will also focus on balancing the rate of fill required to bring on land early to keep pace with the growth of the port, as well as the need to maximise the use of land for placement of maintenance dredging material.

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 9 CHAIRMAN AND CEO'S REPORT

Our Chairman, David Harrison, and 10Chief | Port Executive of Brisbane Officer, Corporation Jeff Coleman. Limited Annual Report 2008/2009 ORT P A YEAR OF CHANGE More than managing a port Momentum continues with Year on year we have built on our In addition to our trade facilitation role, key projects solid foundations, and evolved from a PBC’s business goes well beyond the Throughout the year we forged ahead small-town port into one of the nation’s basic functions of a port. We manage with key port projects. In June 2009

fastest-growing major container ports and lease an extensive array of strategic we completed our $57 million General S RE and a world leader in areas such as and non-strategic landholdings, and this Purpose Berth, and, once the associated ' environmental management. generates a significant proportion of our terminal area is complete, this facility will revenue. We operate a fleet of dredgers significantly boost our capacity to handle Our success over the last decade in bulk and break-bulk cargoes. that not only fulfil the maintenance needs EO particular is attributable to four key of the Port of Brisbane, but also generate After the early completion of Berth 10 in factors, our: revenue through contracting for most of 2008, this year Patrick officially opened • diverse business the other Queensland ports. We provide their new, state-of-the-art Terminal 10 Autostrad® facility. DP World is also • strong relationships with customers an efficient interface between rail, road continuing to invest in new equipment • talented and innovative employees and container terminals at the BMT, and and infrastructure. These investments we even provide specialist hydrographic • focus on the long-term future of show their confidence in our strategy for the port. surveying services to other ports. the future, and their belief in our potential These factors proved more valuable than This diverse array of services meant that for growth. ever over 2008/2009, a year unlike any we had the resilience to get through the Construction also continued on other in PBC’s history. challenges of the last twelve months. container berths 11 and 12 for our third stevedore, Hutchison Port Holdings Strength and performance Diverse business leads to solid (HPH). We are the first port in Australia THROUGH DIVERSITY returns for shareholders to introduce a third stevedore, and we MAN AND C

The Port of Brisbane is not immune Amidst such a challenging economic look forward to the knowledge and R to the challenges posed by the global environment, it is extremely pleasing to experience HPH will bring to Brisbane economic downturn. Despite this, report that we were still able to deliver when they begin operations in 2012. AI we are a diverse commodity port so a record financial performance. Work is now underway on the duplication

we don’t rely on the performance of any Operating revenue increased by 50% of the Captain Bishop Bridge, which H one commodity. to $446.6 million and net profit after tax will include major upgrades and increased by 4% to $456 million. This improvements to the port’s main entry C Containers and motor vehicle trade allowed us to provide a record dividend point. We also made significant progress declined during 2008/2009, but of $339 million to our shareholders this at our two key estates – Port West and outstanding results in key bulk trades year. Our strong trade performance, Port Gate. meant we still achieved a record total5 year trade performance rental income,Total the container sale trade of non-core trade result. TONNES (MILLION) properties, andTotal tonnes the final (million) sale ofTEUS shares 5 year revenue* Total trade increased 5.6% to1,0000 reach in Brisbane Airport Corporation18 Other Services Rentals Trade charges $ MILLION 31.9 million tonnes, thanks to record900 Holdings (BACH) were the main16 drivers 200 harvests of export cereals, chickpeas,800 of this result. 14 and cotton products, and unprecedented700 150 Total assets increased 22% to 12 growth in coal exports. This result600 is $2.7 billion, even after the sale 10of shares outstanding in the context of such500 a in BACH. With our continued focus8 on 100 tumultuous year, and adds to over400 a the provision of new infrastructure,6 we decade of positive growth in total300 trade. invested $156 million in new capital 200 4 50 See Accelerate and plan for trade and revenue projects, and we plan to spend another 100 2 growth on page 19. $950 million over the next five years. 0 0 0 2004/05 2005/06 2006/07 2007/08 2008/09 2004/05 2005/06 2006/07 2007/08 2008/09 See Our economic and financial performance * Revaluation gains and the sale of BACH shares have been on page 63. excluded from this graph.

5 year trade performance TEUS TONNES (THOUSANDS) Total container trade Total tonnes (million) (MILLION) 1,000 35 900 30 800 Our diverse trade portfolio 700 25 600 20 ensured PBC remained 500 15 resilient in the face of 400 300 10 200 a challenging global 5 100 economic environment. 0 0 2004/05 2005/06 2006/07 2007/08 2008/09

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 11 We remain focused on the long-term growth of the port, despite the effects of any short-term We have always stressed to our The launch of our Diversity Plan in March economic conditions. stakeholders that although providing commits us to valuing the diversity and new infrastructure is one of our primary experience of our staff and the new goals, it will not, in itself, lead to a more Women@Work program provides career Our resolve to progress these projects productive and efficient port. This support for our female staff. will not diminish in the year ahead. While year we made significant progress in recognising the uncertain short-term See Diversity encouraged on page 33. implementing a port-wide Productivity economic conditions, we remain focused Strategy, and we would particularly like to PBC’s most important value remains on the long-term growth of the port. thank our customers for their willingness Safety First – we are more interested See Deliver on our infrastructure projects on to make this happen. We’ve always in our staff returning home safe at the page 22. been proud of the strong relationships end of each day than getting the job WORKING TOWARDS GREATER that exist between the members of done quickly by taking unacceptable EFFICIENCIES the Port of Brisbane community, and risks. I’m pleased to report that this year our safety record improved with three There’s no doubt that the way the the advances we’ve made here are LTIs, compared to seven the previous world does business has shifted, just another demonstration of this. We year. However, this result was still challenging the entire port industry to still have a long way to go, but we are disappointing, and we will continue to review current practices and find new confident that once we can establish work to improve our safety culture and ways of doing things. better understanding, measurement and reporting of productivity measures, we performance. At PBC, we have taken the opportunity can achieve our goals. See Safety performance improves on page 31. to evaluate our priorities, and adjust See Drive port efficiency on page 26. our planning and business model to One of the biggest and most immediate ensure we are well positioned for global Another critical piece in our plan for the challenges facing our staff is the economic recovery. future is the divestment of non-strategic privatisation of the organisation. assets. In particular, we still own and We will support staff as much as possible Our focus on sustainability will be more manage a number of landholdings along through this process, providing accurate important than ever, across every stretches of the Brisbane River that are and timely information. aspect of our business. not core to operating the port. Over the Our commitment to climate In an economic sense, it’s about making coming year we will continue our push change better use of the resources we have, to develop and sell these assets to more To attract and sustain increased and strengthening our focus on financial appropriate owners, in turn providing business opportunities, we must address management. For this financial year, us with proceeds to fund strategic the potential impacts of increased and those to come, we have targeted port projects. productivity on the environment and the significant cost savings and reviewed See City Reach boardwalk reopened to public community in which we operate. discretionary spending across on page 25. all divisions. In October 2008, the Board approved Caring for our people our Climate Change Commitment. This We have reviewed and adjusted our Although operational and economic sets measurable goals for the next four pricing models. We have also had them indicators are often the most obvious years in our efforts to reduce the port’s independently verified, to ensure they are signs of our success, there is a number emissions, improve resource efficiency, fair and reasonable for our customers of other areas where we consider our understand climate change impacts at and also provide us with adequate performance to be equally important the port, and encourage staff and the returns for shareholders and to support – valuing our people, protecting our port community in their efforts to reduce future capital projects. We’ve rationalised environment, and supporting our their own environmental footprint. We our procurement plans and are now local community. also completed a Climate Change Impact working to maximise competition in our Assessment Project, to assess the tendering processes, to ensure we find Uncertain economic times, rapid vulnerability of key port infrastructure to top quality suppliers offering the best technological changes, an ageing future sea-level rises. value for money. workforce, and changing employee expectations, are the challenges we See Climate change commitment on page 42. Our risk management framework not face in retaining the right people for the To understand the port’s greenhouse only ensures compliance, but it’s also right job. We continued to nurture the gas emissions and air pollution we are a vital part of protecting our assets and leadership potential of our staff, provide undertaking a port-wide emissions investments. During the year we took them with a work/life balance and inventory, in consultation with the port’s steps to further strengthen our risk encourage diversity in the workplace. shipping and transport operators. This management strategies, and we began We now have more people than ever will provide a baseline to compare future looking at new ways of managing our risk taking advantage of our flexible work air quality and emissions attributed to across all areas of the business. This will arrangements. be a key focus over the next 12 months. port operations. See Strategic risk management and quality systems on page 59.

12 | Port of Brisbane Corporation Limited Annual Report 2008/2009 ORT P We completed the waterside emissions Privatisation – a new era We would sincerely like to thank our survey in July and will complete As this report goes to print we are in Directors for the invaluable contribution the landside survey in late 2009. the midst of preparing our business they made to our organisation during Opportunities to address the results for its greatest ever transition – from the year. We are also grateful to our

will be discussed at our port-wide government owned corporation to shareholding Ministers, the Hon Rachel S RE

Sustainability Forum. privately owned corporation. Nolan MP and the Hon Andrew Fraser ' MP, for their ongoing support. We See Inventory of port precinct air emissions on Our stakeholders understandably have page 50. gratefully acknowledge our departing a keen interest in the sale of the port, Director, Sue Palmer, for her commitment EO SUPPORTING EMPLOYMENT and how the sale may change the way and support during the term of her In January we launched an employment we do business. It is simply too early to appointment, and we would like to website for the Port of Brisbane, to raise know exactly how things will change, welcome Susan Rix, a former PBC awareness of the diversity of career but we can say with confidence that we Director, back to the Board: we look opportunities at the port. Despite the have had a strong commercial focus for forward to working with you again. slowing of the employment market, many years, and this puts us in the best more than 40 jobs have been posted possible position to benefit from the We would also like to make special on portcareers.com.au since it was opportunities that will come. mention of one of our Executive Team launched. The website is also used by members, Bill McElwaine, who retired We’re already focused on growing during the year after more than 40 years schools and universities to explore future trade, growing our returns, and growing career opportunities. with our organisation. Bill leaves behind a our port to meet future demands, and long legacy of passionate service to the See Portcareers – a smart choice on page 33. privatisation is really just the next step in port and we thank him sincerely for the our evolution. MAN AND C Open and accountable mark he has made. R reporting Although the Queensland Government Throughout PBC’s history, a vital element We were extremely pleased and proud is leading the sale process, we will at the heart of our success has been our to again be recognised at the prestigious be involved at every stage, and we employees. Their pride and dedication AI Australasian Reporting Awards this year are committed to working with our to their work has seen us through years for our 2007/2008 Annual Report and shareholders to ensure the best result. of ups and downs, and we have every H

People and Environment Report, by This will mean continuous engagement confidence in their ability to adapt to the C winning the Report of the Year. This with our stakeholders, to make sure we’re changes ahead. Thank you all for the role was the second time in three years that keeping them informed and involved you have played in our many and varied our reporting has been recognised in wherever possible. accomplishments. We look forward to this way. We expect the sale process will take what we will achieve together in This year we have combined our time and involve a significant amount of the future. reporting into one volume, as we believe our resources. But at the same time, it that a concise report about all the is still ‘business as usual’ for the Port of facets of our business is appropriate for Brisbane, and business continuity will an annual report. We cannot achieve remain a key priority. business growth independently of With all of these factors considered, our social responsibility, employee our vision to be Australia’s leading port: engagement and environmental here for the future, is now more important David Harrison performance. than ever. Chairman We also extended our materiality Our key to success approach to reporting our non-financial The year 2008/2009 has been one of performance. We consulted with our many challenges and surprises, and we Community Consultative Committee and now look towards 2009/2010 with great conducted interviews and workshops expectations. to establish a list of stakeholder issues. We selected three of these issues and Jeff Coleman engaged Ernst & Young to conduct a Chief Executive Officer limited assurance. See About this report on the inside front cover.

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 13 OUR KEY CORPORATE STRATEGIES

Our 2008/2009 SCI outlined six key corporate strategies, each with a range of specific targets for achievement. The following tables show how we performed against each target over the year. Our 2008/2009 SCI is available on our website at www.portbris.com.au/corporation/publications/annual_reports_09.

Strategy 1 – Accelerate and plan for trade and revenue growth Critical success factor Target ✓ Achieved Next year’s target Page ✗ Grow trade Implement strategy to increase ✗ Total container trade Implement strategy 19 container throughput to 1 million teus decreased from 942,716 teus to achieve container by June 2009. in 2007/2008, to throughput of 880,000 896,199 teus. teus by June 2010. Implement strategy to increase ✗ Motor-vehicle imports Implement strategy 19 motor-vehicle imports to 225,000 units decreased from 220,902 to achieve imports of by June 2009. units in 2007/2008, to 134,000 motor vehicle 164,156 units. units by June 2010. Increase total trade to 32.2 million tonnes ✗ Total trade increased Achieve 30.9 million 19 by June 2009. from 30.2 million tonnes tonnes in total trade by in 2007/2008 to June 2010. 31.9 million tonnes. Implement bulk land rationalisation and ✓ Implemented strategy in line Implement strategy in line 21 optimisation strategy by June 2009. with specified timeframes. with specified timeframes. Develop business development marketing ✓ Strategy completed by Implement strategy in line n/a strategy by June 2009. June 2009. with specified timeframes. Optimise return on land Adjust land rental increases to market ✓ Adjustments made in line with Adjust land rental 64 values by June 2009. lease terms by June 2009. increases to market values in line with established review schedule. Take-up of new land Lease Stage One (12ha) of Port West ✗ Negotiations still underway. This indicator has not 21 by June 2009. been included in the 2009/2010 SCI. Lease 6ha of Port Gate (east) ✓ Area leased to Tzaneros This indicator has not 21 by June 2009. Enterprises by June 2009. been included in the 2009/2010 SCI. Ensure realistic pricing Finalise pricing review with ✗ Review finalised and new Complete implementation 21 recommendations to the Executive and pricing arrangements of new pricing Board by September 2008. announced in August 2009. arrangements by June 2010. Increase transhipments Commence marketing campaign to ✗ Motor vehicle transhipments This indicator has not 19 achieve 25% increase in motor vehicle decreased by 46.5% by been included in the transhipments by June 2009. June 2009. 2009/2010 SCI. Negotiate new lease Complete lease negotiations with DP ✓ Leases submitted to This indicator has not n/a agreements with World Brisbane and Patrick, and submit shareholding Ministers by been included in the stevedores for approval by shareholding Ministers by September 2008. 2009/2010 SCI. September 2008. Maintain relationships Implement customer and stakeholder ✓ Strategy implemented in line Implement customer and n/a with key customers and strategy in line with established call plan. with established call plan. stakeholder strategy in line stakeholders with established call plan.

Our new General Purpose Berth and Terminal is on track for operation in 2009/2010.

14 | Port of Brisbane Corporation Limited Annual Report 2008/2009 ES OUR KEY CORPORATE STRATEGIES I

Strategy 2 – Deliver on our infrastructure projects TEG Critical success factor Target ✓ Achieved Next year’s target Page

✗ A Implement reclamation Complete ground-improvement trials at ✓ Trials completed by This indicator has not 22 strategy Fisherman Islands by December 2008. December 2008. been included in the 2009/2010 SCI. Deliver wharf Complete General Purpose Berth by ✓ Project completed in Complete Sunstate 22 infrastructure June 2009. June 2009. Cement hopper and conveyor system for operation at General Purpose Berth by TE STR June 2010. Develop port estates Prepare Port Gate (east) Stage 2 for ✓ Stage 2 completed for This indicator has not 21 A development by November 2008. development by been included in the November 2008. 2009/2010 SCI.

Investigate strategic waterfront options at ✓ Investigations completed by Prepare 20ha of land 21 OR Port West – Stage 1 by December 2008 specified timeframes. for development by P and Stage 2 by June 2009. December 2009. Strategy 3 – Facilitate improved port access

Critical success factor Target ✓ Achieved Next year’s target Page OR ✗ Develop relevant Complete Heavy Transit Corridor ✓ Strategy and consultation This indicator has not 22 strategies Strategy and consultation with key completed by December 2008. been included in the stakeholders by December 2008. 2009/2010 SCI. Complete Stage 2 of the Rail Model ✓ Study completed by This indicator has not 24 Study, investigating impacts of inland December 2008. been included in the hubs, by December 2008. 2009/2010 SCI. Strategy 4 – Make strategic investments and undertake non-trade activities Critical success factor Target ✓ Achieved Next year’s target Page ✗ ✗ Progress of Northshore Achieve one land sale during Land sale still under negotiation. Achieve one stage 24 KEYOUR C development 2008/2009 year. land sale per year from 2009, and achieve sales of $15 million from land sales per year from 2009. Dispose and/or Disposal of City Reach properties by ✗ Disposal of City Reach properties Disposal of City Reach 25 rationalise targeted December 2008. still under negotiation. properties by properties February 2010. Develop Port of Develop strategy for the future ✓ Strategy developed, Implement 26 Bundaberg development of Bundaberg, and prepare Land Use Plan prepared by development strategy Land Use Plan by December 2008. December 2008. within specified timeframe by December 2009. Complete Burnett Heads Boat Harbour ✓ Development plan completed by This indicator has not 26 and non-trade Development Plan by June 2009. been included in the June 2009. 2009/2010 SCI. Complete Burnett Heads Bridge by ✗ Bridge still under construction. Complete Burnett 26 June 2009. Heads Bridge by December 2009. Development of New Complete design and achieve approvals ✓ Design completed and approvals Complete construction 25 Port Office for New Port Office building by received for new building by of and occupy New December 2008. December 2008. Port Office building by June 2010. Increase berths at boat Implement single channel initiative in ✓ Single channel open by This indicator has not 25 harbours Manly by June 2009 June 2009. been included in the 2009/2010 SCI. Complete new marina development at ✗ New marina development now This indicator has not 25 Scarborough by June 2009. expected to be completed by been included in the June 2010. 2009/2010 SCI.

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 15 Strategy 5 – Drive port efficiency and sustainability Critical success factor Target ✓ Achieved Next year’s target Page ✗ Promote port efficiency Increase teus per quayline metre to ✗ Teus per quayline metre Increase teus per 27 over 620. averaged 540.6 for the year. quayline metre to over 620. Keep controllable shipping delays to n/a This data is no longer available. This indicator has not 28 under five hours. been included in the 2009/2010 SCI. Keep container terminal truck turn time ✓ We recorded an average Keep container n/a to under 30 minutes. container terminal truck turn time terminal truck of 27.5 minutes. turn time under 30 minutes. Strategy development Develop Port Productivity Strategy by ✓ Strategy completed by December Achieve Port 26 December 2008. 2008, reviewed again in 2009. Productivity Strategy milestones in line with Achieve strategy milestones by n/a On track for completion of strategy timeframes December 2009. milestones by December 2009. by June 2009. Effective implementation Include more than 15 sustainable design ✓ At least 15 sustainable design This indicator has not 25 of sustainable design into initiatives in new developments initiatives included in new been included in the port development (where relevant). developments (where relevant). 2009/2010 SCI. Reduce environmental Record no Class A or B environmental ✗ We recorded no Class A Record no Class A 50 incidents incidents as a result of PBC activities. incidents, but did record one or B environmental class B environmental incident. incidents as a result of PBC activities. Improve PBC’s Develop Sustainability Strategy ✓ Our 2008/2009 Sustainability Implement strategy 42 greenhouse gas emission by December 2008 and begin Charter was completed to guide to meet objectives performance implementation by June 2009. our sustainability priorities for the of climate change year, and our Climate Change initiatives by Commitment was developed December 2009 with a specific focus on resource (and ongoing). use and carbon management priorities. Implement and Record no non-conformances to our ✓ In February 2009, the EMS was Record no 42 maintain Environmental ISO 14001 accreditation. audited and re-certified against non-conformances Management System ISO14001:2004. This was our to our ISO 14001 third re-certification audit since accreditation. we were accredited in 2000, with no operational or system non-conformances. Promotion of Port of Implement Port Employment Initiative ✓ Portcareers.com.au, launched in This indicator has not 33 Brisbane employment milestones by June 2009. January 2009, is a website that been included in the opportunities raises awareness of the diversity 2009/2010 SCI. of career opportunities and the sustainability of jobs at the Port of Brisbane.

A team from our Planning, Environment and Community division on their Volunteer Day, including (L-R): Leonnie Thomson, Scott Temple, Richard Taylor, Scott McKinnon, Matt Lorenti, Brett Collingwood.

16 | Port of Brisbane Corporation Limited Annual Report 2008/2009 ES I

Strategy 6 – Support people, their learning and growth TEG Critical success factor Target ✓ Achieved Next year’s target Page ✗ A Attraction and retention Achieve employee turnover of less ✓ Employee turnover was 9.4% for Achieve employee 31 of people than 15%. the year. turnover of less than 15%. Ensure over 95% of externally advertised ✗ We offered and filled 90.2% of Ensure over 95% of 31 jobs are offered and filled. externally advertised jobs. externally advertised (A number of advertised jobs are filled after the positions were withdrawn during first advertisement.

the year.) TE STR ✓

Valuing diversity Record no internal complaints relating to Diversity complaints are included Achieve a 90% 33 A diversity in the workplace. under EEO complaints, of which positive response to none were recorded during the statement “I am the year. treated with respect

and fairness within OR my workplace” in the Climate Survey. P Understanding what our Achieve an overall satisfaction rating of n/a The next survey was due in 2010. Achieve an overall 34 people value most over 90% in Culture Survey. However, due to the uncertainty satisfaction rating of of when the port will be sold, over 90% in Climate OR we have decided to undertake Survey. a Climate Survey in late 2009. Achieve an employee engagement n/a Achieve an employee 34 This survey will seek to identify rating of over 60% in Culture Survey. engagement rating of any key issues of concern and over 70% in Climate generally find out how people are Survey. feeling about the organisation and the roles they play. Developing our people Record an average of 8.75 hours per ✗ We recorded an average of Record an average of 33 quarter of learning and development 7.25 hours per quarter, due to at least 6.6 hours per time for each employee. budgetary constraints. quarter of learning and development time for each employee.

Record an average expenditure of ✗ We recorded an average of $607 Record an average 33 KEYOUR C $900 per quarter on learning and per quarter, due to budgetary expenditure of development for each employee. constraints. $585 per quarter (excluding travel and accommodation) on learning and development for each employee. Health, safety and Achieve zero lost time injuries for the ✗ Three of our permanent Achieve zero lost 32 well-being 2008/2009 year. employees recorded LTIs. time injuries for the 2009/2010 year. Record no non-conformances against ✓ In January 2009 we were Record no non- 32 our AS 4801 accreditation. re-certified against AS4801:2001 conformances Occupational Health and Safety against our AS 4801 and ISO 9001:2000 Quality accreditation. Management Systems. In the ten years since we were first certified, we have not been issued with a system non-conformance.

In the ten years since we were first certified against AS4801 and ISO9001 we have never been issued a non-conformance.

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 17 OUR OPERATIONAL PERFORMANCE

PRODUCTIVITY noun. the quality of being productive; producing readily or abundantly

18 | PortOur Futureof Brisbane Port Expansion Corporation area will Limited allow us Annual to continue Report developing 2008/2009 port facilities to meet future trade growth. E

IFC About this report Accelerate and plan for trade Originally, one of our goals for the year

and revenue growth was to develop a strategy to achieve MANC IFC our Vision, MISSION a 25% increase in motor vehicle AND Values Containers and cars take a hit in transhipments. We devised a strategy, global crisis but we were not able to implement it 1 our highlights The Australian port industry, and indeed due to market conditions. 2 our history the entire global trading community, is F OR currently facing some of the most difficult Agricultural trades bounce back 3 our organisation economic conditions seen in decades. in tough times

10 Chairman and CEO’s Report Despite disappointing results overall in ER Container shipping around the world container and motor vehicle trade, our 14 our key corporate has been hit hard, with many shipping diverse trade portfolio meant that we still strategies lines consolidating or reducing capacity achieved a record total trade result, with on services. As consumers spend less, outstanding performances in coal and 18 our operational retail imports have slowed dramatically, agricultural commodities. Overall, performance particularly from the Asian region. total trade increased by 5.6% to reach 30 our social performance As a result of these factors, this year we 31.9 million tonnes, with exports up recorded a decrease in container trade 17.5% (to 15.5 million tonnes) and 40 our environmental for the first time in 25 years. Our total imports down 3.7% (to 16.4 million performance I O NAL P of 896,199 teus was down 4.9% on tonnes). 54 Corporate governance 2007/2008. Exports of empty containers Drought-breaking rain in key growing T

were a major contributor to this result, A 62 our Economic and areas led to record harvests of export dropping 16.7%. However, due to Financial Performance cereals, chickpeas, cotton and better than expected performance from cottonseed. Cereals increased by a

74 Independent Limited containerised agricultural products, full massive 273% to 1.9 million tonnes, ER Assurance Report export containers were up 5.9%, bringing from just 505,047 million tonnes in total export container trade to a decrease 76 grI Content Index 2007/2008, and chickpea exports

of 4.2%. increased by 50.5% to 117,581 tonnes. O P

80 Index, including table, Cotton is slowly recovering from drought Full import containers decreased by graph and diagram index conditions, increasing 52.1% to 8.6%, largely due to the downturn 192,140 tonnes during the year, and 82 gLossary and in consumer spending, while the cottonseed increased 124.4% from abbreviations surge in agricultural exports led to an 2007/2008 to 31,015 tonnes.

impressive 13.3% increase in imports of OUR 84 Port of Brisbane Map empty containers. Overall, total import Bumper year for coal 86 Contact Us containers decreased by 5.6%. Coal exports increased by 15% or 833,148 tonnes to reach 6.34 million In another effect of the financial crisis, 87 Feedback form tonnes – the highest ever annual motor vehicle sales across Australia throughput of coal for the Port of IBC our Financial Reports dropped significantly. Queensland Brisbane. The increase was the result (on CD) has been particularly affected and, of rail capacity expansion, upgrades consequently, motor vehicle imports to the New Acland mine at Jondaryan, through Brisbane decreased 25.7% and increased storage capacity at to reach 164,156 units for the year Queensland Bulk Handling. (including transhipments).

Total container trade Export full Total trade Export (’000 teus) Export empty (million tonnes) Import Import full 20 Import empty 500

15 Despite difficult 400 global economic 300 10 conditions, we still 200 achieved a record 5 total trade result with 100 an increase of 5.6%. 0 0 2004/05 2005/06 2006/07 2007/08 2008/09 2004/05 2005/06 2006/07 2007/08 2008/09

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 19 Gas boosts bulk imports Top regions One of our most significant import results Import 2008/09 Growth % of total this year came from the introduction of ship-to-ship LNG gas transfers, where All origins 16,428,682 -3.7% large carriers discharge product at sea SE Asia 5,834,453 5.9% 36% to smaller vessels for transportation to Australia 3,686,800 -2.6% 22% other ports (rather than the larger carrier making further stops). This provides a North Asia 2,190,608 2.6% 13% significant cost saving for customers, East Asia 945,230 -13.4% 6% and it led to a 99% increase in gas trade New Zealand 927,225 -25.5% 6% through Brisbane for 2008/2009. Export Production of refined oil from local All destinations 15,467,429 17.54% refineries dropped during the year due to unscheduled maintenance, leading North Asia 6,097,218 4.55% 37% to an 11.5% increase in imports of the East Asia 3,481,217 59.62% 21% refined product. Australia 2,497,315 13.87% 15% As another consequence of the financial SE Asia 1,314,338 12.18% 8% crisis, construction projects slowed in New Zealand 432,211 -9.89% 3% many local sectors, leading to decreases in imports of cement, building products and timber – down 12.4%, 11.2%, and 29.6% respectively. The downturn in Trade by commodity (tonnes) consumer spending also led to a Imports 2005/06 2006/07 2007/08 2008/09 % share 14.3% decrease in imports of household Crude oil 7,410,603 7,900,148 7,466,741 7,473,058 45.49% items, and a 10.3% decrease in other retail products. Cement 1,661,087 1,747,410 2,043,494 1,790,643 10.90% Refined oil 1,057,970 725,576 1,280,780 1,427,579 8.69% Bulk ship visits record positive growth Iron & steel 589,412 684,499 696,573 707,210 4.30% In a reflection of our trade results, we Building products 433,281 451,796 518,731 460,370 2.80% recorded decreases in ship visits from Total imports 14,956,868 16,049,969 17,055,168 16,428,682 most categories except for bulk carriers, where visits increased by 9.9%, and Growth 1.09% 7.31% 6.26% -3.67% tankers, where visits increased by 12.1%. Exports Container ship visits dropped 16%, and Coal 4,158,321 4,225,839 5,502,005 6,335,153 40.96% total ship visits were down 6.7% overall. Refined oil 2,092,315 2,422,976 2,163,171 2,246,088 14.52% BMT rail trade holds strong Cereals 837,006 364,499 505,047 1,881,107 12.16% Overall, rail trade through the BMT Meat products 713,526 800,141 746,691 752,620 4.87% increased by 4,424 teus or 5.6%, to reach a total of 83,457 teus. This is an extremely Iron & steel 441,712 488,717 432,428 536,712 3.47% positive result, considering the decline Total exports 11,779,310 12,008,114 13,159,467 15,467,429 in overall container trade. The increase Growth 5.13% 1.94% 9.59% 17.54% was mainly due to the outstanding performance of containerised cotton and Total trade grain exports over the year, as agricultural Total tonnes 26,736,178 28,058,083 30,214,635 31,896,111 commodities dominate trade volumes Growth 2.83% 4.94% 7.69% 5.57% through the facility. With the addition of road volumes, the BMT’s total throughput was 90,854 teus, equivalent to a 1.3% decrease on Ship visits BMT rail trade Inwards 2007/2008. This decrease was largely 2008/2009 (’000 teus) Outwards (Total of 2,453) due to the completion of the new Patrick Total rail trade cargo-link facility, which meant Patrick Container 150 no longer needed to use the BMT for Cargo 120 short-term container storage. Bulk 90 Vehicle Read more about our trade 60 statistics at www.portbris.com. Tanker au/operations/trade/statistical_reports Other 30 0 2004/05 2005/06 2006/07 2007/08 2008/09

20 | Port of Brisbane Corporation Limited Annual Report 2008/2009 E

Grain trade soars after rains return Grain trade Wheat MANC (’000 tonnes) Sorghum Agricultural products emerged as The easing drought conditions and Total grain some of the leading trade commodities the seasonal nature of both wheat and 2000

during the 2008/2009 financial year. sorghum crops meant exports could be 1600 This helped bolster Brisbane’s total sent overseas, and to domestic markets. F OR trade figures at a time where difficult The substantial growth was the result of an 1200 economic conditions caused a decline excellent 2008 sorghum crop, a favourable 800 in container shipping and motor 2008 wheat crop, and the 2009 summer ER vehicle imports. sorghum crop. Over the last 12 months we 400 have exported more sorghum than in the 0 Grain was one of the top performers, previous seven years combined. 1999/00 2006/07 2007/08 2000/01 2001/02 bouncing back to highs not seen 2002/03 2003/04 2004/05 2005/06 2008/09 since the last bumper harvest in 2000. More grain ships in port Deregulation of the wheat market Drought-breaking rain ensured grain The large volume of export grain saw a While the sorghum market has been crops produced better yields for 600% increase in grain ships berthing deregulated for many years, the wheat farmers. Improved export opportunities at the grain terminal, from seven ships in industry only became deregulated in and the deregulation of the wheat 2007/2008 to 50 ships in 2008/2009.

late 2007. It opened up the marketplace I O NAL P market also contributed to the record This year, we exported 1.3 million tonnes to increased competition, with over six volumes exported through the Port of bulk grain and we also exported major exporters now operating through T

of Brisbane. 470,000 tonnes of containerised grain. Brisbane’s grain terminal, operated A by GrainCorp, as well as a number Record trade volumes Over the last three to four years, overall of smaller players. In addition to new During 2008/2009, Brisbane exported demand for bulk vessels has increased

exporters in the market, there was also ER 1.9 million tonnes of grain, four times due to growth in coal exports. This, a rise in the number of countries who the volume exported in the previous combined with the increased availability received export grain, from 39 countries year. Grain crops consist predominantly of empty export containers (due to the

in 2007/2008 to 53 countries this O P of sorghum, a summer crop used mainly considerable number of import containers year. Primary export grain destinations for animal feed, and wheat, a winter not in use), made containerised grain included Japan, Iraq, Vietnam and crop used mainly in the production quite a viable option. In fact, ten years New Zealand. of foodstuffs. We exported 855,000 ago only 7% of grain was containerised, tonnes of wheat and a record 909,000 compared to 27% this financial year. Read more about our

tonnes of sorghum this year. trade statistics at OUR www.portbris.com.au/operations/ trade/statistical_reports

Key estates to support future growth During the year we also progressed The strategy outlines options for The planning and development of the with development of Port West, rationalising landholdings on the north remaining strategic port land areas is located at Lytton approximately 6km side of the river, to address future essential to our plan for accommodating from Fisherman Islands. We removed demand for land near or next to future trade growth. The Future Port surcharge from the 22ha Stage 1 area wharf access. Expansion (FPE) at Fisherman Islands and placed it on the 16ha Stage 2 area See www.portbris.com.au/ is our main area for growth, providing for settlement. operations/trade for more 230ha for future development. Future development of wharves has information on our property developments. Port Gate, located just minutes from the proven feasible along the downstream New pricing schedule released main Fisherman Islands port complex, foreshore of Port West. A preliminary PBC has not increased its wharfage is being developed progressively as business case shows that the area and harbour dues since 1982. Over a warehousing and freight-forwarding could be developed for the growing this time, we have also eliminated precinct. One major lessee, the Tzaneros needs of the motor vehicle and berthing charges at Fisherman Islands, Group, continued with construction of general cargo industries. The ultimate and even reduced charges for certain additional warehouses during the year. development offers 90ha of land and commodities. However, during this A number of tenants now occupy space 900m of quayline. We are continuing time we have also undertaken a major in these warehouses, including Australian with investigations and stakeholder capital expenditure program to provide Container Freight Services, Linfox, consultation to further refine the concept. new infrastructure and maintain existing Steelforce, and Carter Holt Harvey. To further support our future port facilities, in a climate of increasing The remaining unallocated area of the development needs, during the year we financial pressure. We can no longer precinct is now ready for development, also progressed with a bulk cargo land continue to absorb this pressure. and we are in the process of negotiating optimisation strategy. with a number of potential tenants.

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 21 In August 2009 we announced a new One company uses a fully sealed New General Purpose Wharf ready pricing schedule, to take effect from vacuum system, while the other uses a for operation 1 December 2009. The new schedule is simpler system by applying the vacuum In June 2009 we completed the the result of extensive analysis, including pressure directly to the wick drains. 220m General Purpose Wharf, and an independent review from a third-party the associated terminal is on track for We engaged Coffey Geotechnics to expert. We recognise the challenges completion by the end of September assess the results at each site, and also currently being faced by many of our 2009. Total expenditure on this project appointed a specialist review team of customers, and we feel that the 6% is $57 million. Completion of the General world renowned geotechnical professors increase in both wharfage and harbour Purpose Wharf will significantly boost our to provide further insights. dues strikes an appropriate balance capacity to handle bulk and break-bulk between a fair pricing level and our All three trial participants were deemed cargoes at Fisherman Islands. We were ongoing need to fund capital projects competent at carrying out the wick also pleased to see the wharf completed for the future. drain works. Each of the different on schedule and under budget. techniques were successful, although See www.portbris.com.au/ Last year we reported on the early their application will depend on the completion of Berth 10, our seventh operations/shipping/port_ ground conditions for each reclamation dedicated container berth. The 372m charges for our Schedule of Port Charges. area – and these conditions vary greatly. berth was handed over to Patrick, Deliver on our infrastructure The fully sealed vacuum-consolidation who opened their new, state-of-the-art projects techniques showed strong potential for Autostrad® terminal early this year. Both Patrick and DP World will ultimately have Final results delivered on use in edge areas of the FPE where at least 900m each of quayline under reclamation trial edge stability is of particular concern. The specialists also commented on their control. During the year we completed a major the very high technical standard of our ground-improvement trial at our FPE We also completed or progressed with trial program. area. The aim of the trial was to find new a number of other infrastructure projects techniques to help us speed up the We will continue our involvement with during the year, summarised in the consolidation process and make the the trial companies as we progress with table below. reclaimed land available more quickly, in reclamation at the FPE. In fact, two of See www.portbris.com.au/ line with our development needs, and to the companies are already underway operations/currentprojects/ cater for the specific development of with the installation of new fully sealed projectlist for more information land adjacent to the Moreton Bay vacuum-consolidation and wick on the progress of these projects. Marine Park. drain areas. Facilitate improved port access Three international companies $4.6 million refit for the Brisbane Planning for Heavy Transit Corridor participated in the trial – Van Oord, In November 2008 our ocean-going underway Boskalis Australia, and Austress Menard. dredger, the Brisbane, went into dry As we continue to develop new facilities Each company was allocated a trial dock for a major refit, which occurs at Fisherman Islands, the need to balance site and installed a mix of different every two-and-a-half years. The majority public access with the increasing need types of wick (vertical) drains. Two of of work was contracted to local ship for connectivity between the terminals the companies also installed alternate repair and engineering company, and backup areas becomes increasingly ground-consolidation techniques, using Forgacs, at their Cairncross Dockyard important. To address this issue, during vacuum consolidation. facility. The $4.6 million refit ensured that 2008 we completed the strategy for the Brisbane can operate at the highest development of a Heavy Transit Corridor possible level of safety and efficiency. at Fisherman Islands. Major infrastructure projects Project Status Berths 11 and 12 Rockwalls now complete, surcharge in place for Terminal 11 and part of To become new container berths for our third stevedore, HPH. Terminal 12. Berths due for completion in 2012 and 2014, respectively. Widening of access road between AAT and Grain Berth Completed in November 2008. To allow for movement of motor vehicle imports independently of other terminal traffic. Port Drive upgrade and Captain Bishop Bridge duplication Lucinda Drive embankment completed. Tender for main road and bridge To improve safety and increase road capacity for the future. construction to be called in late 2009. Due for completion by end of 2010. Construction of Curlew Street at Fisherman Islands On track for completion in September 2009. For access to Terminals 10-13 and FPE area. New multi-user terminal at the Grain Berth On track for operation in October 2009. For accommodation of cruise vessels at the Grain Berth. Perrin Creek Project at Colmslie On track for completion by end of November 2009. Creek realignment for flood mitigation purposes. Volvo Commercial Vehicles Australia On track for completion in early 2010. Office/warehouse facility at Eagle Farm estate.

22 | Port of Brisbane Corporation Limited Annual Report 2008/2009 E

Expert panel validates trial findings MANC At the end of 2008 we concluded benefits of using vacuum consolidation, • The trialled wick drains were all our two-and-a-half year ground- acceptable residual settlement targets, generally appropriate for the soil improvement trial. Given the importance and indicate whether the trial results types and depths of compressible of the trial to the future of our port would also apply to the outer FPE area. materials, although some types F OR expansion, we were keen to ensure seemed to perform slightly better Due to the complex conditions in the FPE the trial results underwent extensive than others.

area, the professors’ findings were varied, ER review and analysis. To achieve this, but can be summarised below: Looking forward we appointed a panel of specialist The trial results have given us a geotechnical experts to conduct a • The trials clearly indicated that the use solid basis for planning future land review, in parallel with a review by of wick drains could be adopted for the development at the port, and the Coffey Geotechnics. FPE area, if experienced contractors confidence to know we are using the with appropriate machinery are used. We appointed three professors, all most effective techniques available. • The results clearly indicated that the world renowned in their fields: fully sealed vacuum consolidation We still face many challenges, due • Professor A Balasubramaniam, technique was very efficient, and to the complex and difficult land

Griffith University superior to wick drains alone conditions in the FPE, but we will I O NAL P Professor Buddhima Indraratna, achieving rapid consolidation and continue to innovate and build on our • T University of Wollongong maximising stability. knowledge as we go along. • Professor Harry Poulos, Coffey • Wick drain performance appeared A Geotechnics, University of Sydney. to reduce when drains were placed If you’d like to read more about We asked each professor to review closer together, so there would be our ground-improvement trials, ER all pre- and post-installation design benefit in conducting further trials with wider spacing. see page 42 of our 2006/2007 Annual reports, and identify the best Report, available at www.portbris. performing wick drain, the optimum • The pore size of filters did not appear to affect their performance. com.au/corporation/publications. O P drain spacing, the success and OUR

An aerial view of the FPE area, including the vacuum consolidation trial site.

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 23 Future Heavy Transit Corridor See www.treasury.qld.gov.au/ office/services/asset- PATRICK TERMINAL 11 TERMINAL 12 management/asset-sales/index.shtml DP WORLD PORT DRIVE for more information on the port sale. Make strategic investments CURLEW STREET and undertake non-trade HEAVY TRANSIT CORRIDOR PATRICK HEAVY TRANSIT CORRIDOR activities TRUCK MARSHALLING BISHOP DRIVE Northshore continues to grow AREA In March 2009 we completed the second stage of roads and services at

FUTURE PORT EXPANSION PRECINCT our Northshore Hamilton area, with the extension to MacArthur Avenue linking to Barcham Street now open for public access. Last year we selected Australand (in a joint venture with BOS International) as the preferred bidder for the purchase LUCINDA DRIVE and development of Lots 1 and 3, the first parcels of land for residential The proposed Heavy Transit Corridor road would remain the most effective development comprising 6.28ha of will provide a potential rail and road and cost efficient mode of transporting riverfront land. Works were originally corridor for container traffic movements the vast majority of containers to and scheduled to commence this year, but between: future and existing terminal from the Port of Brisbane. Even under difficult market conditions have led to areas; container parks and depots within extreme market conditions that would delays. Negotiations are continuing and the island; and terminal areas and the favour rail transport (i.e. high fuel prices), we are hopeful that the development will BMT. Public access to the corridor will be the increase in rail container mode share proceed over the coming year. prohibited and a licence will be required was estimated to be modest. for use. The corridor will become a Last year we reported on the completion This result reaffirms the vital importance secondary longitudinal access route of the new Northshore Riverside Park of investing in improved road access to along the island. Detailed design work is and Café, which opened to the public the port, in particular the Port of Brisbane now progressing, and access restrictions in July 2008. The park hosted the Motorway upgrade. will not come into place until alternative Symphony at the Shore event (part of public access is available through a Stage 1 of the Port of Brisbane Motorway the Brisbane Festival) in late 2008 future road connecting Terminal 11 to was completed in 2002, and it is now with great success. It was attended Lucinda Drive (in approximately 2012). critical that progress is made on the by over 4,000 people, and the event (See above diagram.) upgrade before the road reaches is scheduled to be held at Northshore maximum capacity. During 2008/2009 again in 2009. Rail study validates existing port we worked closely with the Department access model We also hosted Cirque du Soleil’s Dralion of Transport and Main Roads on the In late 2007 we engaged a team of rail production during December 2008 successful completion of the business consultants from Meyrick GHD. Their and January 2009. Our security team case, and we will continue to do so as objective was to examine the economic managed car parking during the season work on the formal project commitment merit of retaining the existing single and we were able to donate $25,000 in progresses. railhead delivery model at the BMT, versus proceeds from parking fees to Brisbane an alternative model based on individual Traffic modelling results have shown charity, Youngcare. rail spur lines at each terminal. In 2008 a clear need for the upgrade by 2011, See page 37 for more information on our we asked the consultants to expand on particularly with the completion of the community sponsorships. their original study and develop a model Gateway Upgrade Project, and the The Urban Land Development Authority that assessed the cost of road versus rail increasing congestion and number (ULDA), the Queensland Government transport to and from the port. A number of traffic incidents along this corridor. body charged with planning for the of different factors were analysed to A ‘market sounding’ process was development of land at Northshore, test how rail trade through the port may completed during the year, with positive finalised the Development Scheme change, for example, under increased fuel feedback received from a range of for the wider Northshore area during prices or following the development of potential participants in the project. the year. Representatives from our inland rail hubs. When Premier Anna Bligh announced Northshore Development Group the sale of PBC, she stated that it would The first component of the study contributed to this process, providing include a commitment to upgrade the concluded that the existing BMT rail much of the background information motorway. At this stage it is not clear how model is the preferred model for the needed to complete the Development this will affect the proposed business future, and there was no economic case Scheme. model, but we are certain that the for moving to multiple rail spur lines. The majority of work already completed on See www.northshorehamilton. second part of the study concluded that the business case will be of value. com.au for more information.

24 | Port of Brisbane Corporation Limited Annual Report 2008/2009 The New Port Office E building will become the hub of PBC’s activities.

City Reach boardwalk reopened to We continued with the development We were also pleased to see that all of the public of Port Central during the year, with our Manly Boat Harbour tenants were MANC PBC currently holds a number of wet the commencement of construction re-accredited with Clean Marina status. leases in the City Reach of the Brisbane on the New Port Office building. The Moreton Bay Trailer Boat Club Marina, River. Some of Brisbane’s best-known building, to become PBC’s new head Royal Queensland Yacht Squadron restaurants are located along this stretch office, has been planned and designed Marina Ltd, Wynnum Manly Yacht Club, F OR of the river, along with the City Reach against the Green Building Council Port of Brisbane William Gunn Jetty, and boardwalk, a much-used pedestrian and of Australia design rating tool (version East Coast Marinas, all worked hard to cyclist corridor for city commuters. 3) for commercial office buildings. maintain the high levels of environmental Once again, we are aiming for a 5 star management required to achieve their ER Several years ago, engineering Green Star rating. We are expecting to second Clean Marina accreditation, assessments confirmed that the occupy the New Port Office building having first joined the program in 2006. boardwalk structure needed major in June 2010. It will become the hub of The Clean Marinas Australia Program is a repairs, and was not adequate to support PBC’s activities and will bring together national, voluntary accreditation system large crowds of people during major our various business units, which are for the boating industry, introduced in events, like the annual Riverfire night. currently spread across several different an endeavour to protect our coastal and Consequently, access to sections of the port locations. inland waterways. boardwalk has been restricted for up to As part of the revision of our Port The two-level building at Manly Boat a year, and one section was closed for I O NAL P around nine months. Development Code it is now mandatory Harbour, built by PBC for DERM, for all Port Central office buildings to was officially opened in July 2009. T In July 2009 the closed section of the

achieve a 5 star Green Star design The building reflects best-practice A boardwalk was reopened to the public rating. This confirms our commitment to sustainability and eco-efficient after a $2.5 million repair program. ensuring sustainable development at the accommodation standards and has a Additional repairs are now progressing,

port, and builds on the achievements of 5 star Green Star rating. The building ER but these works should not impede the Port Central One development, which has enabled DERM to better public access to the boardwalk. is now fully tenanted. manage operational response times, Negotiations surrounding the repairs

accommodate eight new marine rangers, O P are complex and difficult, and work is Improving facilities for the boating and house nearly $350,000 worth of community ongoing to determine which parties have new equipment. We finished the project During the year we completed work at a responsibility to contribute financially. with some landscape gardening and Manly Boat Harbour to improve ease of We are part of a multi-agency working resurfacing of the surrounding public navigation and to accommodate new group, established by DERM, which car park and boat ramp. We’ve received

marina berths. The project involved OUR meets regularly in an effort to resolve a fantastic response from the local dredging around 120,000m3 of material the future strategic management of the community on the revival of this from the harbour, and removing City Reach leases as an iconic feature of popular facility. 101 pile moorings. The existing two Brisbane City. The ultimate aim of both channels were replaced with a single, PBC and the Queensland Government is wider channel with fewer intersections. to divest this non-strategic land asset to a The new harbour layout will allow for more appropriate entity. approximately 300 new, fully serviced, New Port Office to accommodate floating marina berths. Our new marina growing workforce was opened in April 2009, providing Port Central is a 9ha precinct in the much improved facilities for those boat middle of the Fisherman Islands owners who previously occupied the complex – master planned and pile moorings. designed to be the commercial heart of the port community. The precinct will include: commercial office buildings, convenience retail and service facilities, and recreational facilities in the longer term. Unique on the Australian port landscape, it has been specifically designed as a central precinct providing convenient access to a range of strategic business services and amenities.

An aerial view of construction on the New Port Office building. Port of Brisbane Corporation Limited Annual Report 2008/2009 | 25 We also completed improvement Work progressed on the Wallace Creek Drive port efficiency works on the Sinbad Street boat ramp bridge project (connecting the Burnett Early outcomes achieved for in Shorncliffe and began works on the Heads Boat Harbour to the main port Productivity Strategy Bird O’ Passage Parade boat ramp in area). We were not able to achieve Although provision of new land and Scarborough. Both ramps will now have completion by June 2009, as originally infrastructure is critical for our future, the added benefit of a queuing pontoon. planned, due to some delays in it will not in itself lead to an improved obtaining all the required approvals At Scarborough Boat Harbour, our goal productivity outcome for the port. Equally and tenure. All approvals have now for the year was to see the completion of critical is the need to optimise efficiency been obtained and pre-works are the new Redcliffe Marina by Compass throughout the entire supply chain. underway, with completion expected Marinas. The development is to include by December 2009. Last year we reported that our Port approximately 130 new marina berths, Operations team had developed a Port a retail kiosk and community building, We have also made significant Productivity Strategy, recommending marina amenities, and a boat shed achievements in other areas of the Port a number of potential initiatives to and marina administration facility for of Bundaberg business since merging enhance knowledge and understanding a non-profit youth foundation (the with them in 2007. These include of productivity measures across the H4 Foundation). environmental management, record sea freight supply chain. This year we keeping compliance, and safety, quality The proposed development is quite progressed with the strategy, including and risk management. complex – involving tidal, landside the following initiatives: and dredging works – and is therefore In June 2009 Premier Anna Bligh • approval to run Super B-doubles to subject to an extensive planning approval announced that, as part of the sale of Port Gate and consultation process involving PBC, the Port of Bundaberg would be • investigation with stakeholders into the multiple agencies. For these reasons, transferred to GPC. We expect that the provision of more comprehensive data we are disappointed to report that transfer to GPC will be completed in to measure the performance of the sea Compass Marinas were not able to 2009/2010. Although our involvement freight supply chain as a whole secure the necessary approvals to have with the Port of Bundaberg has been • development of an outline design for a the facility completed by June 2009. brief, we are proud of what we’ve truck rest area to assist stakeholders achieved, and confident that the Planning for the future of Bundaberg with short-term congestion and strategies and plans we have completed The majority of our work at the Port of meeting Chain of Responsibility will be of great value to GPC as they Bundaberg during the year involved obligations assume responsibility for the Port of completion of the new Land Use • the addition of two new road webcams Bundaberg’s future. Plan. After an extensive period of to the PBC website public consultation and stakeholder See www.treasury.qld.gov.au/ • business case approval to establish a engagement, the final plan was office/services/asset- new truck weighbridge at the BMT submitted to the Minister for Transport management/asset-sales/index.shtml • the addition of facility operating hours in May 2009. for more information on the port sale. to the PBC website • approval to trial a new, more efficient We also formulated a business truck configuration at Fisherman development strategy for the Port Islands. of Bundaberg, providing an overall assessment of the port’s strengths, One of our most significant achievements weaknesses, opportunities and threats. was the establishment of DGTrac, a new The scope for the introduction of online system for tracking the movement new commodities through the port of dangerous goods throughout the port. is limited by the costs of providing DGTrac, required to go live for compliance new infrastructure and by operational in September 2009, will eliminate the limitations. However, the port area is well previous paper-based system and lead suited to other marine-related industries, to greater tracking accuracy through a such as boat building, marine repairs and much more streamlined process. Many aquaculture, which will be targeted as shipping lines are already using the future growth opportunities. system, and feedback so far has been extremely positive. See page 44 of our 2007/2008 Annual Report for more information on our productivity strategy.

26 | Port of Brisbane Corporation Limited Annual Report 2008/2009 E

Key Performance Indicators By focusing on growth, volume, The following graphs show data over a

(KPIs) productivity and service factors, we can five year period, with each month shown MANC Our database of KPIs monitors the determine the required future investment as a separate bar. productivity and service levels of the in cargo-handling facilities. Significant different service providers at the port. increases in trade volumes can impact The KPIs showcased in the following on service delivery. Our aim is to balance F OR pages demonstrate the productivity the maximisation of throughput with factors that determine the capacity of the the need to maintain access and high port, as measured by teus per quayline service standards for port users. ER metre, and teus per hectare.

Ship arrivals 2800 Ship-arrival trends show increases over the 2700 long-term supporting the strong growth in 2600 trade volumes. The recent decline is due to 2500 the overall slowing in trade in 2008/2009, 2400

in particular container and motor-vehicle I O NAL P volumes. This is despite an increase in 2300 tanker arrivals. 2200 T ship visits (annualised) 2100 A 2000 JULY JULY JULY JULY JULY JUNE 2004 2005 2006 2007 2008 2009 ER

Average container exchange 800 per vessel O P Container exchanges have been 600 increasing as larger container vessels visit the port, with a significant improvement in 400 exchanges over the last 12 months to an average of over 700 containers per vessel. 200 OUR average container exchange container average 0 JULY JULY JULY JULY JULY JUNE 2004 2005 2006 2007 2008 2009

Berth utilisation 70 This graph, which shows actual usage 60 of container berths by ships at the port, 50 indicates a steady increase in utilisation over the long term. The recent decline is 40 due to slowing trade and the subsequent 30 decrease in ship visits in 2008/2009. % utilised 20 10 0 JULY JULY JULY JULY JULY JUNE 2004 2005 2006 2007 2008 2009

Teus per quayline metre 700 This illustrates the efficiency of quayline usage and measures the annual container 600 throughput divided by the total length of the quayline. There has been a steady 500 improvement in usage over time, but a significant decline in recent months due to slowing trade and an increase in available 400 quayline from the beginning of 2009. metre per quayline teus 300 JULY JULY JULY JULY JULY JUNE 2004 2005 2006 2007 2008 2009

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 27 Yard utilisation 20000 This illustrates the efficiency of yard usage and measures the annual container 18000 throughput divided by the total yard area, measured in teus per hectare. There has 16000 been a steady improvement in usage over 14000 time, but a significant decline in recent teus per hectare teus months due to slowing trade and an 12000 increase in available yard area from the beginning of 2009. 10000 JULY JULY JULY JULY JULY JUNE 2004 2005 2006 2007 2008 2009

Teus per container 1.50 There is a growing trend towards using forty-foot containers, recorded as two 1.45 teus, which impacts favourably on the efficiency of all ports. This is because the 1.40

same volume of cargo can be loaded and teus 1.35 unloaded with fewer crane movements. 1.30

1.25 JULY JULY JULY JULY JULY JUNE 2004 2005 2006 2007 2008 2009

Net crane rate 30 The net crane rate measures the number 25 of containers per hour that the crane operators load or unload. The rate has 20 trended downwards over recent years; 15 however, both stevedores recorded notable improvements over the last 10

24 months. containers per hour 5

0 JULY JULY JULY JULY JULY JUNE 2004 2005 2006 2007 2008 2009

Crane intensity 2.0 Crane intensity measures the average 1.9 number of cranes deployed per net ship 1.8 hour. Net ship hours include the time a ship 1.7 is berthed, excluding stevedoring crew 1.6 changes, meal breaks and equipment downtime, etc. This graph indicates that 1.5 crane intensity has increased relative to per ship cranes 1.4 previous years, due to the introduction of 1.3 new cranes by stevedores. 1.2 JULY JULY JULY JULY JULY JUNE 2004 2005 2006 2007 2008 2009

In previous years we have been able to provide data on ship arrival and departure delays. This year, due to a change in software at MSQ, we were not able to obtain this data. We are now working with MSQ to try and obtain similar data over the next financial year.

28 | Port of Brisbane Corporation Limited Annual Report 2008/2009 E

Outlook MANC Accelerate and plan for trade and By the end of the 2009/2010 year we planning for infrastructure provision revenue growth expect to have made significant progress and related charging arrangements as Our focus for the year ahead will on the Port Drive upgrade and Captain part of the Northshore Development be to try and maintain steady trade Bishop Bridge duplication. This project Scheme. F OR levels through the port, as we expect will provide the necessary infrastructure We were pleased to see the reopening recovery from the financial crisis to meet the growing volumes of traffic of the City Reach boardwalk but we ER may be slow. In particular, we expect to and from the port, and ensure safe still hope to divest this land asset to agricultural trades to continue their and efficient access for employees, a more appropriate entity, to focus strong performance, as key growing visitors and freight transporters. It will our time and resources on strategic regions continue to recover from also reduce the risk of a port closure, port assets. drought conditions. which comes from relying on one bridge for access. Recreational boat users are already At Port Gate, we will continue to finalise enjoying the benefits of the new single lease arrangements for the remaining, Facilitate improved port access channel at Manly Boat Harbour, and unallocated area of land. Likewise, at Over the next year we will progress with by the end of next year our upgrade Port West we hope to complete the planning for the Heavy Transit Corridor project will be fully complete. Our I O NAL P outstanding works for the business at Fisherman Islands, to ensure we are

focus will then be on the completion of T case, and finalise lease negotiations ready for construction once alternative the Compass Marinas development at with tenants. We expect that property access roads are complete. A Scarborough and the rationalisation of sales/leasing in general will increase in The results of our rail study have moorings at Cabbage Tree Creek and line with broader economic conditions confirmed that the existing BMT model Gardens Point. over the next year. ER will serve the port well into the future, Our responsibility for the Port of One of our most significant tasks so we will now continue to focus our Bundaberg will transfer to Gladstone over the next year will of course be attention on road access to the port.

Ports Corporation in 2009/2010. O P preparing our business to be sold, It is still not entirely clear how the sale of We will strive to provide the new and we have set up a dedicated the port (and of Queensland Motorways) owners with the highest level of internal team to carry out this work. will affect progress on the upgrade of the support in the handover. Our focus will be to ensure we can Port of Brisbane Motorway. Whatever the deal with the significant demands of case may be, we will continue with our Drive port efficiency

the sale process, while continuing to involvement in the project team to ensure Our focus on productivity will be OUR operate our business effectively and this critical piece of infrastructure moves stronger than ever in the year ahead, efficiently. Throughout this process, forward as soon as possible. as we work towards a greater depth of we will endeavour to work closely understanding across the entire supply Planning for construction of road access to with customers to ensure they are chain. We do expect trade growth in Port West will also commence during the kept informed. some areas to start recovering towards year ahead, to prepare for the beginning of the end of next year, and our aim Deliver on our infrastructure construction on the first facility. is to ensure we are ready to handle projects Make strategic investments and increased volumes as required. Development of new land and facilities undertake non-trade activities will continue at Fisherman Islands over Our stakeholder meetings, including Our Northshore Development Group will the next year, with our primary focus the Landside and Waterside Logistics continue to progress the development on construction of Berths 11 and 12. Forums, will continue to play vital roles plans for Lots 1 and 3, as well as Activities will include completion of the in achieving greater collaboration. preparing to make additional areas of design for Wharf 11 and the purchase We hope that improved overall land available for sale. Key to this process of piles for the project. The findings understanding and communications is our continued partnership with the from our ground-improvement trial will across all components of the supply ULDA, especially as they finalise the also be put to good use as we roll out chain will result in greater efficiencies. several of the reclamation techniques on a larger scale. Our new General Purpose Berth will be up and running in the next year, providing a major boost to our ability to handle bulk and break-bulk cargoes. The final step in the completion of this facility will be the establishment of Sunstate Cement’s hopper and conveyor system.

Insert caption here. Port of Brisbane Corporation Limited Annual Report 2008/2009 | 29 OUR SOCIAL PERFORMANCE

LEADERSHIP noun. creating a path and inspiring others to follow

We hold a Family Day for our employees every two years. In October 2008, over 500 staff and family members enjoyed the day of fun, food and activities. E

IFC About this report Our Employees We have an Onboarding Program

for new employees that provides a MANC IFC our Vision, MISSION Staff numbers increase consistent experience. It also enables AND Values PBC employs over 20 different people to establish networks to become professions and trades people in

more competent in their new roles as OR 1 our highlights permanent full-time, permanent part-time, quickly as possible. The Buddy system is casual and temporary roles at PBC, and F 2 our history part of the program. Employees volunteer the Port of Bundaberg. The team has to act as buddies to new staff, providing 3 our organisation grown from 337 at June 2008 to 387 at information and support during the June 2009. ER 10 Chairman and CEO’s Report settling-in period. Total staff turnover for the year was 9.3% 14 our key corporate To effectively advertise and promote (excluding temporary employees and strategies employment and career opportunities casuals), which is down from 13.3% for the port and shipping industries, 18 our operational in 2007/2008. This reflects the trend in January 2009 we launched a port performance towards high retention rates during times careers website for the businesses of economic downturn and uncertainty. 30 our social performance located at the Port of Brisbane. As a result of the Queensland CIAL P 40 our environmental See Portcareers – a smart choice on page 33. performance Government’s decision in June 2009 to privatise PBC, the 15 staff working As part of our commitment to a 54 Corporate governance at Bundaberg will transfer to the GPC future workforce, PBC has provided in 2009/2010. a local student with a school-based 62 our Economic and apprenticeship in fitting and turning. Financial Performance At the completion of the course in 2011, Age profile – all employees Female BMT rail trade 74 Independent Limited the student will obtain a Certificate III in 30 June 2009 Male (’000 teus)

Assurance Report Engineering Mechanical Trade. SO OUR 80 Total rail trade 76 grI Content Index 70 Our corporate scholarship program 60 currently provides one civil engineering 80 Index, including table, 50 and one hydrographical surveying graph and diagram index 40 student with financial assistance while 82 gLossary and 30 they study, industry experience during abbreviations 20 semester breaks, and guaranteed 10 permanent employment at the 84 Port of Brisbane Map 0 15-24 25-34 35-44 45-54 55-64 65+ completion of their studies. No new 2004/05 2005/06 2006/07 2007/08 YEARS YEARS YEARS YEARS YEARS YEARS 86 Contact Us scholarships were offered during 2008/2009. 87 Feedback form Employee length of service BMT rail trade Safety performance improves 30 June 2009 (’000 teus) IBC our Financial Reports PBC is committed to providing a safe 240 Total rail trade (on CD) and healthy workplace for staff, 200 contractors and visitors, ensuring they 160 return home safely at the end of each 120 day. For this reason Safety First is our 80 number one value. 40 The Health and Safety Policy clearly 0 states this commitment and is available 0-5 6-10 11-15 16-20 21-25 26-30 31+ 2004/05 2005/06 2006/07 2007/08 YEARS YEARS YEARS YEARS YEARS YEARS YEARS on the Intranet, the website and displayed in the main office foyer. A focus on recruitment Updates to this policy are notified via the The increase in employee numbers fortnightly Team Brief. (50 employees) during 2008/2009 See Employee Communication on page 34 is partially attributed to the full-time regarding Team Briefs. employment of security staff, previously See www.portbris.com.au/ employed on a contract basis. In 2008 health/policies to read our we also recruited additional skills in the Health and Safety Policy. We encourage port operations and hospitality areas. diversity and resilience, and nurture leadership potential.

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 31 In January 2009 PBC was re-certified Class A incidents during 2008/2009 against AS4801:2001 Occupational Incident Immediate action Long-term prevention action Health and Safety Management Systems and ISO9001:2008 Quality Management Trucks queuing outside Security patrols were We worked with the port operator Systems. In the ten years since we were the grain terminal waiting increased; barriers to implement control measures first certified, we have not been issued to unload grain posed a erected to prevent trucks for processing the trucks through significant traffic hazard. parking on the road the facility. Drivers were instructed with a system non-conformance. verge; and a mobile to wear high visibility vests; Our safety target is zero LTIs. We message board placed park well away from the edge of on Port Drive to detour the road; and not stand on the believe this target is achievable, but in unnecessary traffic road-side of the vehicles. 2008/2009 three of our permanent around the area. employees recorded LTIs. While this A contractor working on the The tag was replaced We have installed a lockout figure was down from seven in the Brisbane, breached a safety until the work required system on electrical equipment previous year, it is still disappointing procedure removing a “work was completed. The tag on the Amity as a pilot project. that our staff were injured on the job. in progress” tag from a piece was then removed by an Our principal contractors and casuals of electrical equipment. authorised PBC officer. employed by labour-hire companies, working on our projects accounted We classify incidents under the following By June 2009, risk registers had been for an additional two LTIs. categories: substantially developed for the BMT, boat harbours, port operations and All three injuries sustained by Class A – incidents that can cause, or maintenance operations. Risk registers our employees were the result of have caused, major or significant harm. will be completed for all divisions by the ‘behavioural’ rather then ‘systemic’ Class B – incidents that cause, or have end of 2009. events. That is, lack of attention rather caused, serious or moderate harm. than a failure of established systems or Heath and Safety Committee changes equipment. The focus for next year is to Class C – incidents that have caused Changes to PBC’s Health and Safety bring about a shift in our safety culture, minor harm. Committee were made in 2008/2009 from a compliance-based emphasis to encourage ownership by the staff, Two Class A safety incidents occurred to one that emphasises behavioural and promote more effective two-way in 2008/2009. These incidents management. communication between staff and predominately involved property damage management. We now have three safety PBC defines an incident as an and process loss. There were six Class B committees as follows: unplanned event, which may lead, or and 240 Class C incidents reported. has led to, injury to people, or damage to All three LTIs were Class B incidents. • Workplace Health and Safety property, equipment, or the environment. Representatives Committee – Risk registers developed 11 members elected by staff; meets As part of our risk-based approach to every six weeks; identifies and business performance, our Safety and Lost Time Injury Frequency Rate makes recommendationsBMT on rail relevant trade Quality Systems team is facilitating the (no. of LTIs per 1,000,000 work hours) safety issues. (’000 teus) development of risk registers across 18 • Workplace Health and Safety Total rail trade our work sites. These registers will 16 Officers Committee – 10 members 14 identify and define acceptable levels nominated by management; meets 12 of safety and quality risk as well as monthly; advisory role to employees; 10 define the levels of controls required, 8 implements workplace health and so that people are only exposed to an 6 safety initiatives. acceptable level of risk. 4 • Health and Safety Committee – 2 0 29 members, including all Workplace 2004/05 2005/06 2006/07 2007/08 2008/09 Health and Safety Officers2004/05 and2005/06 2006/07 2007/08 Representatives, and eight permanent observers (including a Chairman and Secretary) appointed by management; meets every quarter; reviews our safety program and performance and makes recommendations on safety initiatives.

Five staff received awards for long service in February 2009. Back row: Paul Clarke (Port Operations), Mary Eakin (Finance), Tony Marles (Information Technology). Front row: Bill Dick (Maintenance), Barbara Brown (Planning, 32 | Port of Brisbane Corporation Limited Annual Report 2008/2009 Environment and Community). E

Portcareers – a smart choice MANC Portcareers.com.au, launched in Potential employees who choose By integrating the jobs board with

January 2009, is a website designed to to register via the job alert function, career information, the site provides OR raise awareness of the diversity of career automatically receive an email when a potential job seekers and students with opportunities and the sustainability of job is posted on the site that matches the an online web experience that is easy to F jobs at the Port of Brisbane. criteria they have selected. use, engaging and informative.

Over 2,500 people, in a range of Despite the economic downturn and The site also contains information on ER careers from crane drivers and forklift corresponding slowing of the job market, the port precinct, including a map of the operators to engineers and surveyors, more than 40 jobs have been posted on businesses located at the port, how to currently work at the Port of Brisbane. the site since its launch. get to the port, and the public venues, With numbers predicted to increase to such as the Visitors Centre, Port Central Portcareers also provides a toolkit for over 5,000 by 2015, this website is a Café and the bird roost. secondary- and tertiary-level students complete one-stop shop for potential to research job pathways and careers in PBC manages the website for port and relevant job seekers.

the port, shipping and transport-related operators and businesses located CIAL P The website provides the 19 port industries. Job profiles and video diaries at the Port of Brisbane. From its launch operators that have already subscribed of employees at work at the port give job until early June 2009, the site has to the site, the ability to directly upload seekers a realistic insight into the culture of registered 149 job applications and vacancies onto the website. Subscribers the port and the job opportunities available. over 1,000 people have registered have a business profile that promotes for job alerts. We plan to continue For each career, students can access the the advantages of the company, and promoting the site to all operators necessary pathways and links to subjects the opportunity to showcase a within the port precinct. they need to study, the qualifications particular career.

required, and relevant institutions that offer SO OUR the courses they need to obtain a career in See www.portcareers.com.au the port, transport and maritime industry. for more information.

The Brisbane has its own Health In terms of hours of learning, staff spent We support Equal Employment and Safety Committee under the 11,069 hours in total, or 28.6 hours per Opportunity (EEO), merit-based Occupational Health and Safety (Maritime employee. Eighteen of our employees appointments and promotions, and Industry) Act 1993. were assisted to undertake external equity in recruitment and selection. study, via a contribution to their course The EEO and Code of Conduct policies Minutes of the three committee meetings fees, text books and flexible work are available to all employees on the are published on the Intranet. options, to allow them to attend classes Intranet, and Workplace Contact Officers Learning, leadership and resilience and sit exams. are available to assist employees if Leadership continues to underpin PBC's workplace issues arise. Diversity encouraged culture, and is critical to ensuring we can PBC’s major challenges in attracting, It is disappointing to report that two sustain a resilient workforce that can developing and retaining the right formal workplace complaints were work efficiently and safely. people include: an uncertain economic lodged with management during Our leadership program combines climate, rapid technological changes, 2008/2009. Both complaints were capabilities and behaviours that are demographic pressures, and changing investigated and resolved. formally reviewed every six months employee expectations. To meet these In 2008/2009, a Women@Work program through development and performance challenges we encourage diversity and was launched to ensure members reviews. Individual development flexibility, nurture leadership potential, of this target group feel supported in plans also help to maximise future and provide a work/life balance to their efforts to compete for roles within opportunities. Employees are sustain a workforce that is committed to the organisation, request relevant encouraged to take ownership of continuous improvement. development opportunities, have career their development progress. In 2008/2009, we introduced a prospects beyond the short-term, and are In 2008/2009, we invested $939,046 Diversity Statement and Plan, which inspired to achieve leadership success. in learning and development, or outlines our commitment to recognising, In May 2009 a Diversity Day was held $2,426 per employee. This figure embracing and valuing the differences to further recognise and celebrate our includes course fees, salaries, travel, and experiences of our people and their cultural differences. meals and accommodation, but unique contribution to the workplace. excludes study assistance.

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 33 Two of our planners – David Oatley and David Hertweck – being filmed for our Portcareers website.

Other benefits for Award and non-award employees include: • performance-related bonus opportunities • flexible work practices and leave arrangements • succession planning • study assistance • health and well-being support Workforce profile Every 18 months, we conduct a culture programs survey to ascertain how engaged and • paid prenatal/pre-adoption leave Aboriginal and Torres Strait 2 satisfied employees are working for the Islander people • 14 weeks paid maternity/ organisation. The next survey is due adoption leave Non-English speaking 25 in 2010. However, due to the uncertainty • child care referral service. backgrounds about when the organisation will be sold, People with disabilities 38 we have decided to undertake a Climate Remuneration practices are offered in line with market rates, and every Employees aged 45 years 166 Survey in late 2009. This survey will and over seek to identify any key issues of year selected positions undergo a concern and generally find out how remuneration review. Average age 41.7 years people are feeling about the organisation See www.portbris.com.au/ Average length of service 7.1 years and roles they play. corporation/employment for Award employees 83% Industrial relations more information. Contract employees 17% A total of 83% of staff members are Employee communication No. of females 126 employed under Award conditions. To create a strong team and encourage No. of males 261 Executive employment agreements an environment where our staff feel account for the remaining 17% of staff. appreciated and valued, we regularly Women in the workforce Under the federal Workplace Relations engage with our employees. 2004/05 26% Act 2006, our Award staff work under Team Brief, a fortnightly meeting of three certified agreements with the 2005/06 28% all staff in each division, allows for Maritime Union of Australia, Australian two-way communication on critical 2006/07 28.8% Maritime Officers Union and Australian corporate-wide topics, including safety, 2007/08 32.3% Institute of Marine and Power Engineers. major projects, and policy changes. These agreements are due to expire 2008/09 32.6% In 2008/2009, 23 Team Briefs were in 2010. held in each division, with seven staff Women in management Employee benefits guest speakers on a rotational basis, To address the different needs of our providing information on projects within 2004/05 1.6% employees we offer a range of benefits to their division. 2005/06 2.9% support their career and life aspirations. The Intranet continues to be a major 2006/07 2.1% PBC contributes up to 12.75% of source of information for employees. 2007/08 2.4% every permanent full-time employee’s In 2009, a People and Culture section was added, providing more 2008/09 2.3% salary package to their QSuper Fund, conditional on the employees’ concise information on the policies, contribution. Salary sacrifice is also responsibilities and benefits of offered to employees and all staff employment. members are given the opportunity to Our bi-monthly staff newsletter, meet with QSuper financial planners. Port Currents, and monthly external Recent Federal Budget changes to newsletter, Port of Brisbane News, are superannuation will cap the amount posted to all staff members. employees can voluntarily contribute to See www.portbris.com.au/ the scheme. corporation/publications to access our corporate publications.

34 | Port of Brisbane Corporation Limited Annual Report 2008/2009 E

Team building Community involvement We offer the following flexible work

In 2008/2009 we recognised eight PBC is committed to making a positive options to employees, where practical: MANC employees for 10, 20 and 30 years of social contribution, and provides • career breaks (one staff member is service to the organisation; and we employees with opportunities to assist in currently on a career break) awarded three staff innovation awards. community activities. OR • rostered days off (all Award employees

The innovations included: In March 2009, employees joined forces are entitled to one RDO for each F with the local catchment group, Bayside four-week cycle) • A method to speed up part of the Creeks Catchment Group for the • home-based work (10 staff currently reclamation process, using geofabric Clean Up Australia Day. In July 2009 we participate in this option) ER and a light-weight rubber-tyred partnered with Sunfish as the principal • phased retirement options (one staff bobcat. This innovation involved a sponsor of the Clean Up the Pin, and staff member has taken up this option) team effort from our engineers and worked with local recreational fishermen • study leave (18 staff took up this option maintenance staff. to remove litter from Moreton Bay. in 2008/2009) • A lifting frame with the capacity to • purchased leave (one staff member lift up to 30kg of equipment onto Our Volunteer Day program provides has taken up this option) navigation beacons, which are up to full-time employees with the opportunity • compressed working week (three staff 8m above the deck of the surveying to take one day’s paid leave a year to have taken up this option). CIAL P vessel. This innovation was designed help out a charity of their choice. In by one of our surveyors. 2008/2009, 18 employees volunteered a A large number of employees also make • Turning off the water booster day to a number of charities. use of flexible start and finish times to pumps to a marina complex, without avoid traffic congestion and maximise Each year, our social club raises funds affecting the water supply. This childcare arrangements. for a nominated charity, and PBC innovation, discovered by a member contributes to their fundraising efforts. We also provide an Employee Assistance of our maintenance crew, reduced Program and a Healthy Lifestyle Program. greenhouse gas emissions and the In December 2008, the social club SO OUR cost of electricity and maintenance. presented Youngcare with a cheque In 2008/2009, 31 staff, compared to 21 in the previous year, accessed our Our Port Planning Sessions, originally for $22,910, most of which was raised Employee Assistance Program. This held twice a year, are now held quarterly, by staff. program provides free advice and and renamed Quarterly Updates. The Youngcare assists young people with assistance to all staff and their families on sessions are held for middle managers high care needs and provides purpose both personal and work-related issues. and supervisors, and in 2008/2009, designed accommodation. The funds three sessions were held to discuss that were raised assisted in building a The Healthy Lifestyle Program business development strategies, high care facility on the Gold Coast. In recognises health at work and health at infrastructure projects, environmental January 2009, employees chose Beyond home. As part of the program, employees initiatives, and operational issues. Blue as the charity for 2009. have access to confidential and free-of- charge medical assessments, provided Every quarter, the Chief Executive This year, staff also raised over $12,000 by the Ford Health Group. In 2008/2009, Officer presents to staff the safety, for the national flood and fire victims 143 employees accessed the service, trade, and financial performance of in Queensland and Victoria, and PBC compared to 121 in the previous year. the organisation. He also introduces contributed $5 for every dollar raised, In addition, 134 staff were provided with new staff members and presents the bringing the total to just over $62,000. a free annual flu vaccination, and 137 innovation awards. Balancing work and life had a skin check. For staff that have either left the By promoting a culture that embraces PBC also offers employees access to organisation, or taken extended leave diversity, PBC can attract talented discounted health-care premiums with or breaks, we have a Keep in Touch people, decrease staff turnover, boost Medibank Private and MBF health funds. program. Newsletters and regular staff staff motivation, retain experienced staff, contact updates them on recent activities. reduce absenteeism, and better After feedback from staff, in 2008/2009 Staff on parental leave or career breaks manage employee stress, health we commenced a series of fitness also have the opportunity to meet with and well-being. programs, including after-work exercise their manager for detailed updates. classes. Nine staff teams participated in the national fitness program, 10,000 Steps, which promotes a healthy and active lifestyle.

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 35 Our Visitors Centre Shift Leaders – Melissa Kurittu and Antje Grief – at the Eco Café.

For the past two years we have asked committee members to list issues that are material to each of their organisations. This year the result was scattered across a number of issues, with the top three being dredging, community involvement, and Community and Stakeholders The Sustainability Forum was communication. established in 2007 for us to meet with Stakeholder diversity Port tour numbers remain strong port operators to facilitate opportunities PBC has a diverse range of stakeholders, To showcase the port, we offer a range of to reduce emissions throughout the port. from local community members to port free educational, community and seniors’ operators, freight forwarders, importers We will present the final results of the group port tours, as well as an Explorer and exporters, and government waterside and landside emissions Tour for individuals for a small fee. agencies. We strive to maintain open, surveys at the next Sustainability Forum. The number of school groups visiting regular and honest communication with Community involvement – the port in 2008/2009 decreased, all our stakeholders to ensure strong and a material issue with 6,134 students and teachers lasting relationships. The Community Consultative Committee participating in 174 port tours, compared Sustainability forum is vital in maintaining our relationship to 6,991 visitors and 182 tours in In November 2008, we hosted a with special interest community groups. 2007/2008. Sustainability Forum with port operators Since 2003 it has met quarterly to The school tours are tailored to the on Fisherman Islands and Port Gate to discuss ongoing port operations and needs of the students, and can focus on outline the emission inventory project development, boat harbour works, economics, environment, geography or (see Inventory of port precinct air environmental monitoring and other careers at the port. emissions on page 50). As the project topics of interest to the represented affected both the shipping and logistics organisations. It is chaired by our See www.portbris.com.au/ port operators, further discussions on the General Manager Planning, Environment schools for more information on project were held at our regular Landside and Community. our school tours. Logistics Forums and a Shipping The Committee’s minutes are We conducted 202 guided port tours for Australia meeting. publicly available on our website 5,480 community group members, and Shipping Australia is the industry’s www.portbris.com.au/community/ 227 Explorer Tours for 1,530 visitors. peak body. It promotes and advances thecommunity/community_ We also welcomed business, industry, the interests of ship owners and consultative_committee. and government groups to the port for shipping agents in shipping policy tours of the port’s facilities, and to gain and safe environmentally sustainable a greater understanding of the port and ship operations. its operations. Stakeholder engagement 2008/2009 We operate a public bus service between the local communities of Stakeholders Key methods of engagement Wynnum and Manly and the port. during 2008/2009 Patronage continues to be low, but Government stakeholders consistent. In 2008/2009 we discussed Shareholding ministers Corporate Plan; Statement of Corporate Intent; the integration of our bus service with quarterly performance reports; regular briefings TransLink’s Brisbane public transport and updates on relevant issues network. TransLink is a Queensland Government departments regular briefings; strategic and operational Government authority that aims to meetings on relevant issues; newsletters; website improve and expand public transport Business customers services across the South East Importers, exporters, freight forwarders, forums; meetings; site visits; surveys; functions; Queensland network. customs brokers, transport companies, leases; newsletters; website; Portcareers.com.au port operators, shipping agents, shipping lines, stevedores Suppliers and contractors meetings; inductions; consultation Community stakeholders Community and environmental groups Community Consultative Committee; port and visitors tours; meetings; sponsorships; presentations; newsletters; website Employees newsletters; Intranet; inductions; surveys; meetings; staff functions; CEO quarterly presentation Media media releases; editorials; enquiries

36 | Port of Brisbane Corporation Limited Annual Report 2008/2009 E

Hospitality venues still popular Community support The results included:

All our tours begin and finish at the In 2008/2009 we assessed 105 MANC • an increase in the number of Visitors Centre, which offers visitors a sponsorship applications, and invested employees turning off their monitors range of unique experiences to observe, $311,475 in community support, overnight explore and taste. The Centre is open including donations, sponsorships, OR • a preferred stationery list of everyday five days a week, and has an à la carte and community tours. This investment items, including pens, highlighters and F restaurant, casual-style café, conference represented 0.42% of our pre-tax profit folders, making it easier for employees facilities and an interactive display area less revaluations, which was less than to make sustainable choices that describes the history and operation our 1% target. • changing all capable printers to ER of the port. PBC has major partnerships with: the double-sided default printing to reduce Our hospitality venues are committed to Queensland Maritime Museum to restore paper use. Recycled copy paper was sustainable operations. Since January and exhibit maritime projects; Lifeline also introduced throughout the office 2009 over 70,000 cups of Fair Trade to provide a school-based counselling • monthly driving tips (from RACQ) to coffee were served at our venues. service; and Blue Care for a local encourage employees to improve wellness program. We also have a close fuel efficiency The Centre also coordinates visits to association with environmental groups • an energy efficient project at the our 12ha shorebird roost – one of the CIAL P and initiatives, including the Queensland Landcare shed with the installation largest constructed roosts for migratory Wildlife Preservation Society’s Seagrass of electric timer switches, and motion shorebirds on the east coast of Australia. and Mangrove Watch. Both programs sensor controls to limit energy use in Visits to the roost are free, and in are community-based and monitor and low occupancy rooms. 2008/2009, over 230 local, intrastate, record the condition of seagrass and interstate and overseas guests visited An Intranet dashboard presents the mangroves in the vicinity of the port. the site. quarterly results for improvements More information on sponsorships or otherwise of water, paper, waste Seven school groups also included a at www.portbris.com.au/ and electricity. visit to the roost. This is part of a new SO OUR community/communityinitiatives program we developed in association Complaints addressed with the Moreton Bay Environmental E-Teams spread the message We encourage feedback from our Education Centre (a Queensland To encourage our employees to stakeholders and have a formal process Government education centre). participate in the organisation’s for reporting and addressing complaints. everyday economic and environmental Complaints can be made 24-hours a The Jetty Kiosk, located at the Manly performance, E-Teams were established day through our website, or through port Boat Harbour, continues to be a popular to champion sustainable practices at security. In 2008/2009 we received casual dining venue for locals and work and at home. 13 community complaints as shown in visitors to the area; and Port Central One the table on page 38. café is popular with port workers. The first E-Teams included 18 staff members, representing all six divisions. In addition to these formal complaints, The Northshore Riverside Café, which Over six months, the teams introduced we continued to receive queries about was opened in July 2008, is surrounded a number of initiatives to drive the City Reach Boardwalk, a major city by 2.5ha of parkland, and is open seven improvements in waste, paper, energy thoroughfare along the Brisbane River. days a week for lunch, with breakfast and purchasing. The majority of callers were seeking served Saturday and Sunday. Plans for information on the re-opening of the a Brisbane City Council City Cat 90-metre section closed for major terminal are currently under review. repairs. The Boardwalk re-opened in See Northshore continues to grow on page 24. July 2009.

A member of our maintenance crew, Ryan Sullivan. Port of Brisbane Corporation Limited Annual Report 2008/2009 | 37 Community complaints 2008/2009

Complaint Response Reference Trail bike riders causing disturbance to locals in the Signage was erected, and liaison with local police to restrict the riders CC00064; form of dust and noise on port land at Bundaberg. from the area. CC00065 A port tour guide was rude to a visiting group. Apology given and customer service training provided for guide. CC00066 Poor management of marina facility. Apology given over a misunderstanding about an allocated berth at CC00068 our new marina. Slippery ramp at Manly northern boat ramp. Ramp was cleaned. CC00069 Rude parking attendant at Cirque du Soleil. Could not reply as the email address supplied was not valid. CC00071 Misleading advertising of Port Careers website. We apologised for the misinformation published in the newspaper. CC00072 Underneath section of Burnett Heads boat ramp No product is available to clean the underwater section of the ramp. CC00073 is slippery. Advised of a new pontoon in the area. Lack of cruise ship terminal signage. Signage was not the issue. Passengers were incorrectly advised CC00074 where the vessel was berthing. Road gutters and grates blocked after heavy rain The drains and gutters were cleaned out the next day. We continue to CC00075 at marina. monitor the area for debris. Wheelchair access blocked on City Reach Boardwalk. Access had been temporarily blocked for safety reasons. The fencing CC00055 was retained, but shifted to allow access. Resident of Hamilton apartments complained of noise Advised that these wharves could be operational until 2018. CC00076 from a vessel at Hamilton No. 2 wharf. Poor customer service from one of our hospitality staff. Staff member was coached on providing better customer service. CC00077

Outlook Support our people sedentary behaviours and feelings Drive port-wide sustainability PBC’s biggest challenge for its of being “trapped”. The privatisation Our E-teams will continue to educate staff in the next twelve months to process will assist us to accomplish this, staff about sustainable practices at two years will be the move from as a number of opportunities arise within work and at home. In 2009/2010 a government owned corporation the organisation to address the sale. the teams will implement strategies to a privately owned corporation. to influence behaviour relating to Develop people’s learning To ensure an effective transition for all recycling, composting and public and growth our staff, we will continue to promote transport. We will continue to focus on our leadership qualities of resilience, leadership and management Our sponsorship program will innovation and adaptability. development workshops, and in continue with a focus on education, Team Briefs, CEO updates and 2009/2010 we are offering a Here for youth, environment, welfare, local the Intranet will be used to keep the Future program to all Award staff business, and arts and culture. We staff informed and updated on without staff responsibilities. This will will continue to meet with community the privatisation process and complete our internally developed interest groups through the how it will affect them. An internal leadership program that seeks to build Community Consultative Committee, communications review currently a common leadership and management and assist port businesses to recruit underway, will also provide future culture and language among employees. and promote port careers through strategies to effectively communicate portcareers.com.au. Improve safety with staff. We will complete our work site risk The impact of the global financial registers and focus on influencing crisis means that people are less behavioural changes among staff likely to move between industry through our new safety committees, sectors. As a result we are taking Team Briefs, and by encouraging staff steps to increase job movement to identify safety hazards while on- and within the organisation to avoid off-the-job.

38 | Port of Brisbane Corporation Limited Annual Report 2008/2009 E

Key social performance indicators and targets

Indicator 2007/08 2008/09 Target Target ✓

2008/09 2009/10 ✗ MANC No. of employees 30 June 2009.1 337 387 n/a n/a Employee turnover.2 13.3% 9.3% 12% <15% ✓ OR % of women in the workforce.1 32.3% 32.6% >32% >32% ✓ F % of women in professional and administration roles.1 29.4% 21.1%17 >29% >29% ✗ % of women in operational roles.1 0.6% 0.5% >0.6% >0.6% ✗ % of women in senior executive, and senior and middle management ranks.1 2.4% 3.1% >2.9% >2.9% ✓ ER % of women from non-English speaking backgrounds.1 5.1% 7.5% n/a n/a No. of formal EEO complaints reported to management.8 0 0 0 0 ✓ No. of formal harassment complaints reported to management.8 1 2 0 0 ✗ No. of employees using Employee Assistance Program. 21 31 n/a n/a Days lost through industrial disputes.9 0 0 0 0 ✓ CIAL P Employee satisfaction rating as measured by the Culture Survey. 92%16 No survey No survey Climate this period this period Survey Employee engagement rating as measured by the Culture Survey. 79% No survey No survey Climate this period this period Survey % of employees receiving regular performance development reviews.6 97.9% 100% 100% 100% ✓ % of employees receiving regular performance/development reviews rated ‘meets’ or 97.9% 96.4% 100% 100% ✗ above in annual review.7

1, 3 Learning and development expenditure per employee. $4,453 $2,426 >$4,500 n/a SO OUR Learning and development hours per employee.1 51 28.6 Investigate n/a benchmark Learning and development expenditure as a percentage of base salaries.1, 4 7.7% 3.4% Investigate n/a benchmark No. of employees receiving support for external studies.5 20 18 n/a n/a Lost Time Injuries as a result of a safety incident.10 7 3 0 0 ✗ Lost Time Injury Frequency Rate.11 11.7 5 0 0 ✗ No. of non-conformances from SAI Global audit of the PBC against AS4801.12 0 0 0 0 ✓ % of Health and Safety Committee members who are employee representatives. 50% 48% 50% 50% ✗ Amount spent on community support (donations, sponsorships and community tours).13 $312,078 $311,475 n/a n/a Amount spent on community support as above as a percentage of pre-tax profits.14 0.31%15 0.42%15 1% 1% ✗ No. of community complaints. 9 13 0 0 ✗

1 Refers to permanent full-time, permanent 6 Performance management reviews are 11 Includes injuries per LTIs. LTIFR = (No. of LTIs/ part-time, casual, and temporary employees undertaken for new employees who are still exposure hours worked) x 1,000,000. as at 30 June 2009 employed by the Port on their probation period, casual or temporary of Brisbane Corporation Ltd (including employees. Performance management 12 Based on two SAI Global audits per year. Bundaberg). reviews are conducted twice a year. This The Bundaberg Port Corporation is not included indicator relates to employees who received a in the SAI Global audits. 2 Refers to employees who leave the organisation, performance review in June 2009. including retirements, retrenchments, and 13 Includes financial donations and sponsorships involuntary terminations, excluding temporary 7 Calculation based on the percentage of made to community organisations or charities, employees and casuals. employees who completed a performance and all payments made to the contract tour management review. guide for conducting free tours for 3 Includes travel, meal and accommodation costs, community groups. wages, and the cost of internal and external 8 ‘Formal’ refers to complaints (EEO and course fees, excludes study assistance. harassment) that have been escalated to 14 The figure for pre-tax profit used in this senior management. calculation was extracted from the Profit and 4 Calculated using base (ordinary) salary Loss Statement. (excluding on-costs). 9 Based on average number of working days lost per employee involved in the dispute. 15 This figure was calculated on a pre-tax profit 5 Based on number of eligible employees, ie. that excluded the sale of shares in the Brisbane permanent full-time, permanent part-time, and 10 Instances in which permanent staff, casual or Airport Corporation Holdings. excluding casual and temporary employees. individual contractors, directly employed by the Port of Brisbane Corporation Ltd (including 16 The results of the 2007/2008 Culture Survey Bundaberg), suffered a physical injury as a included Port of Brisbane Corporation and result of a safety incident, which results in a Bundaberg employees, but excluded the crew person being declared unfit for work by a on the Brisbane. doctor on any day after the day of occurrence 17 This figure excludes hospitality employees of the injury. included in previous years. We feel this is a more accurate figure.

Insert caption here. Port of Brisbane Corporation Limited Annual Report 2008/2009 | 39 OUR ENVIRONMENTAL PERFORMANCE

FORESIGHT noun. care for the future; knowledge or insight gained by looking forward

40 | PortThe Port of Brisbane of Brisbane Corporation from Nudgee Beach. E

IFC About this report THE PORT AND ITS ENVIRONMENT In 2008/2009 we commenced

construction of our new headquarters, MANC IFC our Vision, MISSION Natural environment located within the Port Central precinct. AND Values The Port of Brisbane is located at The six-level office building is scheduled Fisherman Islands at the mouth of the

for completion in mid 2010, and we OR 1 our highlights Brisbane River. Its operations adjoin the are seeking 5 stars for design and Moreton Bay Marine Park, an area of high F 2 our history construction from the Green Building ecological and conservation value. 3 our organisation Council of Australia. Moreton Bay contains a variety of Operating environment ER 10 Chairman and CEO’s Report habitats, including mangroves and Within the port’s natural and built seagrass. These habitats support 14 our key corporate environment, ships, trucks, trains important nursery and feeding grounds strategies and cargo handling equipment move for a range of fish and crustaceans, many commodities and goods to and from 18 our operational of direct value to fisheries. The area is

the port, and between the various port AL P performance also of considerable environmental value facilities. 30 our social performance to the migratory and resident shorebirds. T The park includes several Ramsar- These supply chain activities, which 40 our environmental declared wetland areas. The closest of generate the port’s economic outcomes,

performance these is approximately 1km from our have the potential to impact upon the E N nearest landholding, which we have 54 Corporate governance air quality, biological diversity and designated as a conservation area, marine resources of the surrounding 62 our Economic and and around 3km from port operations. environment. Financial Performance NM The Port of Brisbane does not operate PBC is committed to understanding the 74 Independent Limited in isolation; its operations are linked to environmental and social impacts of this

Assurance Report activities, such as dredging, and to the supply chain and promoting the potential RO activities of the port's operating tenants. 76 grI Content Index efficiency of these activities. Built environment ENVIRONMENTAL MANAGEMENT 80 Index, including table, PBC manages more than 2,000ha of graph and diagram index Environmental Management System wet and dry land, including Fisherman PBC's Environmental Management 82 gLossary and Islands covering about 950ha at the E NVI System (EMS) provides us with a abbreviations river mouth. Our diverse land portfolio systematic process to understand our includes industrial, transport operations, 84 Port of Brisbane Map existing environment, assess the aspects retail/commercial, office parks, boat and impacts of our operations and, harbour developments and emerging 86 Contact Us through a risk-assessment framework, residential communities. 87 Feedback form develop operational and management OUR The Land Use Plan and Port strategies to minimise impacts. IBC our Financial Reports Development Code 2007 identifies The EMS has a strong focus on (on CD) appropriate land use in various monitoring programs that consider precincts, and defines the economically, both the natural and built environment. environmentally and socially acceptable While the EMS does not explicitly cover outcomes for future development on the operations of our tenants, we work strategic port land. Under this plan cooperatively to ensure all tenants more than 20% of our landholdings are adopt processes to promote a designated as green space, including the beyond-compliance approach to vegetated areas around the port, which environmental management. In 2009 act as natural buffer zones between the this approach was strengthened with port and nearby residential areas. the introduction of a sustainability All developers must allocate 5% of each clause into our infrastructure tender development site to landscaped areas. documents. This complements the Good Environmental Practice clause that was Major projects completed in 2008/2009 added to leases in 2007/2008. include Patrick’s new container precinct, the Tzaneros warehouses, and Sunstate See www.portbris.com.au/ Cement’s grinding mill. environment for more information We are committed on our EMS. to understanding the See page 22 for information on our major projects. impact of the port's supply chain.

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 41 Geographic Services Officer, Giles Stimson, is part of the surveying team responsible for using the multibeam sonar survey equipment.

Board involvement Training and communication Our Board provides input into Central to maintaining sound environmental management and due environmental performance is ensuring diligence matters through the Planning that our employees and contractors are and Environment Committee (now appropriately trained, and aware of the called the Planning, Construction and environmental values of the port and the Environment Committee). surrounding area. The meetings are attended by four Board Our induction program emphasises the In February 2009, the EMS was audited Directors, the Chief Executive Officer, strategies, programs and actions that and re-certified against ISO14001:2004. and senior planning and environment we take to minimise our environmental This was our third re-certification audit staff. The Committee meets quarterly to impact. All employees are required to since we were accredited in 2000. review the progress of the sustainable complete the induction within the first The 2009 audit reported no system development of the port, including two days of starting work. It includes or operational non-compliance against climate change adaption. examples of how each individual the standard. contributes to achieving the goal of a See the Planning, Construction sustainable port. The five key areas of our EMS are: and Environment Committee’s Sound policy: develop and implement charter www.portbris.com.au/ In 2008/2009 employees attended sound environmental policies and corporation/corporategovernance external training on management systems, erosion and sediment control, systems that support the sustainable Climate Change Commitment and climate change. We also delivered development of our port, and provide Our Climate Change Commitment was internal training programs on acid direction on how we operate within our signed by the Board in 2008. We aim to: sensitive environment. sulphate soils and fire ants. • minimise air pollution and greenhouse Partnerships and research Innovative and leading-edge planning: gas emissions from transport sources In 2008/2009 we worked with a continue to push the boundaries of our • continuously improve resource number of organisations and universities current thinking and practices, so that efficiency researching air pollution and dredged we provide innovative and leading-edge • understand climate change impacts material management. solutions to environmental issues. at the port Effective implementation: ensure that • build climate change knowledge and The Queensland University of our commitment to our environmental action amongst our employees and Technology has been testing exhaust goals underpins every aspect of our community. gases on our dredgers, the Amity operations, actions, and decisions. In addition, we have adopted many and the Brisbane. The research has gathered information on selected Corrective action: maintain an efficient measures that support sustainable business outcomes. pollutants, including oxides of nitrogen and effective system that monitors, and sulphur dioxide, and fine particulate measures and reports performance. See www.portbris.com.au/ concentrations within exhaust gases. The system must proactively seek to sustainability for more information improve our systems and operations, and on climate change. It is expected that this information to minimise impacts on people, property, will complement some of the results practices, and the environment. Understanding the impact of climate from the waterside emission inventory change at the port is vital to its project (see Inventory of port precinct Ongoing review and continuous sustainable operation. In 2008/2009 air emissions on page 50), and lead to improvement: regularly review our we completed a Climate Change Impact a better understanding of the dredgers’ operations and activities, to ensure Assessment Project that assessed the performance in relation to air pollution. that we meet the expectations of our vulnerability of three key pieces of port stakeholders. infrastructure to future sea-level rise: We are also working with DERM, formerly the Environmental Protection Agency, to We maintain a series of indicators against main roads, drainage, and the FPE sea wall at Fisherman Islands. The result was assist them in developing three artificial which we measure our environmental reefs within the Moreton Bay Marine management performance, and that infrastructure was at negligible risk through to 2100, with less than a 1% Park. In December 2008 we provided the environmental condition of the and delivered 200m3 of clean rock to the surrounding area. See Key environmental annual exceedance probability of impact due to sea level rise. Harry Atkinson artificial reef. Our survey performance indicators on page 53 for a team conducted surveys of the reef sites sample of these indicators. using our state-of-the-art multibeam sonar survey equipment.

42 | Port of Brisbane Corporation Limited Annual Report 2008/2009 E

DREDGING AND DREDGED- The amount we dredge each year is In 2008/2009, the Brisbane extracted 3 MATERIAL MANAGEMENT largely driven by weather and catchment approximately 770,000m of sand from MANC Safe access maintained development. Both activities influence the Spitfire Channel realignment area. PBC is responsible for the maintenance the amount and movement of silt in the We used approximately 125,000m3 of of 90km of navigational shipping river system. this sand to carry out beach nourishment OR channel, stretching from the northern works under contract to the Moreton Bay These sediments typically contain F Regional Council. tip of Bribie Island, across Moreton Bay, elevated levels of contaminants, which and into the Brisbane River. We need make them unsuitable for placement at Despite this, over the past year we 3 to ensure safe, deep-water access sea. We currently reuse this dredged sourced approximately 117,000m of ER to the port is maintained. Because it material in our land-reclamation activities. hard fill from licensed quarries. This generally follows the naturally deeper This reduces our reliance on land-based material was used primarily to “cap” sections across the bay, less than fill, and removes the need to dispose of areas filled with dredged material, and 10% of the channel requires dredging dredged material at sea. All our dredging for the construction of rock walls. This to keep it clear and at depth. We

work is carried out in accordance with represented approximately 6% of our AL P also carry out maintenance dredging our DERM-approved Dredging and total fill requirements during 2008/2009, between Fisherman Islands and the Dredged Material Management Plan, minimising pressure on land-based T Hamilton Reach of the river, to enable which remains a condition of our permit resources and reducing associated safe passage for vessels visiting berths to dredge in Moreton Bay. traffic generated by road haulage. upstream. Sediments washed from the E N catchments can reduce channel depth We removed approximately 100,000m3 A harbour project and may restrict access to the port. of sand from approved channels in In 2008/2009 we managed a significant Moreton Bay. This clean sand is also dredging project in the Manly Boat Environmental features used in our reclamation operations Harbour to realign the main channel and NM PBC operates several dredgers including and is placed on top of the marine create additional areas for commercial 3 the 2,900m trailing suction hopper muds extracted from the river. The marina development. dredger, the Brisbane. sand provides a sound development RO The assessment of the sediment quality platform, and creates a layer between The Brisbane is the largest dredger of its prior to dredging found it to be suitable the underlying muds and future type based in Australia. Its low-wash hull for disposal at sea. During the year, about operational areas. and below keel discharge of overflow 72,000m3 of clean dredged material was waters significantly reduces the turbidity Development dredging work placed within the approved placement generated by its operation. continues along the future quayline area at Mud Island. E NVI

It is also fitted with turtle deflecting at Fisherman Islands. The majority of Levels of contaminants devices on the drag head. We have the work for Berth 11 is completed. remain constant trialled several variants of turtle Approximately 725,000m3 of material deflectors, and have found our current was extracted to develop these areas to Prior to beginning our annual maintenance dredging of the Brisbane version minimises adverse impacts to the approved depth. OUR dredging operations, while maintaining River, we carry out comprehensive as much of the capability to prevent We have approval to extract up to sediment sampling and analysis. 3 turtle capture as possible. As part of 15 million m of sand from the Spitfire The program involves: our dredging program, each year we Banks area in northern Moreton Bay to use for port development purposes, • collecting sediment cores from record the number of turtles killed. This is 48 sites within the river (three of which reported to the relevant federal and state primarily on Fisherman Islands. These works also have the benefit of are outside our dredging area, and are agencies as part of the conditions of our used as reference sites only) dredging permit. No turtles were killed ultimately straightening the channel’s existing dogleg. • submitting samples to approved by the Brisbane during 2008/2009. laboratories, to determine sediment This is down from one in 2007/2008 and characteristics two in 2006/2007. See www.portbris.com.au/ operations/dredging for more information on our dredging fleet. Quantities dredged decrease This year we dredged approximately 237,000m3 of fine-grained marine muds from the navigation channels within the Brisbane River, swing basin and berth areas adjacent to Fisherman Islands. This is a decrease from last year, when approximately 286,000m3 of sediment were dredged from these areas.

The Brisbane (centre), working to reclaim land and develop the FPE. Port of Brisbane Corporation Limited Annual Report 2008/2009 | 43 • comparing contaminant levels with Areas where sediment sampling occurred 2009 the sediment-quality criteria outlined in the National Assessment Guideline for Dredging (NAGD) 2009 for Screening Levels (requires further consideration/ assessment), Maximum Levels (not Boondall recommended for placement at sea) as defined in the previous guidelines – PORT OF National Ocean Disposal Guidelines BRISBANE for Dredged Material 2002, and past Fisherman Islands sediment-quality data. Brisbane Airport We aim to sample sediments as close to the dredging date as possible, to ensure that the data collected is relevant. This year our sampling program was carried out in February 2009. The results Pinkenba continue to be highly variable, with no r Hamilton e clear indication of trends over the past iv e R Wynnum ban ten years. Bris Bulimba Hemmant Manly Nickel, cadmium, copper and lead Boat Harbour occurred at a number of sites as in City previous years, but these are typical of contaminants found in urban run-off. Mercury continues to be a concern, with some 24% of sites sampled St Lucia recording concentrations above the NAGD screening levels, up from 15% last year and 13% in 2006/2007. Nickel was found across 53% of the test sites, up from 13% last year and The 2006/2007 result was biased by two Organochlorine pesticides 33% in 2006/2007. However, nickel is samples that recorded concentrations (OCPs), particularly DDT thought to occur naturally as the result of 538μg/kg and 180μg/kg. This would (Dichlorodiphenyltrichloroethane) of the erosion of parent rock within the suggest that the high TBT concentrations and Chlordane have historically been catchment. It is not considered as a in 2006/2007 were outside the statistical detected within river sediments. Again contaminant concern in this area. “norm”. There were no abnormally this year, concentrations of these high concentrations detected in the contaminants are above screening levels, Elevated levels of tributyltin (TBT) 2008/2009 sediment testing program. but, on average, marginally less than in continue to be detected within the previous years. river sediments, although only 11% The continued elevated levels of TBT of the sites sampled were found to have the potential to limit the options for The detection of these no-longer-used have concentrations above the NAGD placing this material. The use of TBT as pesticides tends to support our theory screening levels, compared to 10% last an antifouling coating for marine hulls on that pesticide-contaminated material is year and 31% in 2006/2007. The mean vessels greater than 25m in length was being eroded, washed from land-based concentration of TBT within this year’s discontinued in 2003. The International and marine deposits, and settling in the Maritime Organisation allowed a five-year deeper shipping channels of the river. samples was 4.9μg/kg, up from phase-out period for its use. While it will 3.2μg/kg last year, but down from In the past we have tested sediment be some time before TBT falls below 22.2μg/kg in 2006/2007. and water within the reclamation areas detection levels, it is expected to decline to confirm the contamination status of over time. the dredged material. Data indicates that the reclaimed sediments meet the DERM-investigation thresholds and the health-based investigation levels for port development. Testing of the sediments as part of this year’s program indicated that, for all sediments tested, the 95% upper confidence limit met the DERM health- based level for residential use.

An excavator levels sand in the port's reclamation area. E

This confirms that these sediments do roadbase material, and be used in the Material Placement Area at Mud Island not pose a risk to human health or the production of topsoil. While there remain was designated under the revised MANC environment when placed on land. significant cost and operational issues Moreton Bay Marine Park Zoning Plan, associated with the use of dredged and we will continue to support the Prior to any land development, we

material in these options, we will continue use of this area for the placement of OR undertake a baseline assessment to monitor national and international clean material. As a major generator of of soil contaminant concentrations. F technologies and encourage innovation in dredged material in this region, we are This provides a benchmark for the alternative reuse options. keen to support the retention of clean return of the land at the completion of a material within the coastal sediment lease term. Due to the sensitive nature All work to date suggests that in order ER system. We will continue to encourage of operations at the Visitors Centre and to effectively reuse this material, the various agencies and authorities to Port Central Precinct sites, we undertook we need to focus on a process to dry and reduce the impact of urban run-off to limit more detailed assessments, and have a rehandle the material prior to supplying the level of contamination being found site suitability statement from DERM for it to the market. We will need to consider within marine sediments.

the unconditional development of these both existing and new technologies, as AL P sites (in accordance with our Land Use well as plan to provide adequate space We are working with the University of Plan) with respect to land contamination. within the port area to process this Queensland to better understand the T dredged material in the future. long-term implications of placing material Search for alternative uses continues at Mud Island, and have co-sponsored

The long-term management of A report commissioned by the Moreton E N several research projects to investigate dredged material remains a key issue, Bay Dredge Material Reuse Study sustainable methodologies for the not only for ports, but also for local Steering Committee was completed in placement of dredged sediments within and regional agencies that need to late 2006. Recognition of the Dredged

the marine environment. NM undertake flood mitigation and coastal development works.

We expect that reclamation works at RO the port will be completed by 2025- Contaminant concentrations within the dredged areas 2030, by which time we are unlikely to of the Brisbane River and Bar Cutting 2009 require any further fill material. The sand extracted from our channel-maintenance Contaminant DEH (1998) NAGD Mean Standard 95%UCL HIL-A Screening level deviation activities is a valuable resource, for which alternative markets are likely to be found, Arsenic (mg/kg) 100 20 6.7 2.1 7.2 E NVI but options for the use of the fine-grained Cadmium (mg/kg) 20 1.5 0.14 0.23 0.2 marine silts, dredged from the river, are Chromium (mg/kg) 100 80 35.6 10.6 38.3 less certain. Copper (mg/kg) 1000 65 26.3 21.1 31.6 As most of the dredged sediments Lead (mg/kg) 300 50 15.7 17.1 20.0 OUR are contaminated with pollutants from urban and agricultural land uses, Mercury (mg/kg) 15 0.15 0.096 0.077 0.115 it limits the options available for the Nickel (mg/kg) 600 21 19.4 5.6 20.8 long-term placement of this material. Zinc (mg/kg) 7000 200 77 40 88 While the material may exceed the 1,2 criteria for placement at sea, it is Tributyl tin (µg/kg) n/a 9 4.9 13.6 8.3 considered acceptable for placement Chlordane (µg/kg)2 50,000 0.5 0.52 0.10 0.54 on land, under controlled conditions. 2 DDD (µg/kg) n/a 2 2.1 7.6 4.0 Dredging will always be required to DDE (µg/kg)2 n/a 2.2 1.5 2.4 2.1 ensure the safe navigation of the port, 2 DDT (µg/kg) 200,000 1.6 0.6 0.9 0.9 but we are looking at ways to reduce the overall quantity of material to be dredged. 1 expressed as µg of tin (Sn)/kg While this is largely driven by catchment 2 result normalised to 1% of Total Organic Compound measured in the sample management, the consolidation of This table details contaminant concentrations for selected contaminants at sites tested within the dredged port operations in the lower reaches areas of the Brisbane River and Bar Cutting in 2009 – see map on page 44. Statistical data has been compared with the Queensland Guidelines for the Assessment and Management of Contaminated Land of the river, should over time, reduce (DEH 1998 HIL-A) and the National Assessment Guidelines for Dredging (NAGD screening levels) for a range the amount of dredging required in the of contaminants. upriver channels. The mean figure indicates central contaminant concentration of all samples tested, and the standard deviation is the measure of how much the contaminant concentration can deviate negatively and positively We continue to investigate alternative from the mean. The 95%UCL is the statistical result that equals or exceeds the true mean, 95% of the time. options for the reuse of dredged material. In the past we have funded trials that The concentrations detected within the majority of contaminants tested were within the acceptable range recommended for placement at sea or on land. However both Chlordane and DDD, a breakdown product of have used our dredged material to DDT, were found to be over the recommended concentration level (based on 95%UCL) for placement at sea. manufacture house bricks, produce

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 45 ENERGY AND GREENHOUSE GASES Summary of greenhouse gas offsets in 2008/2009 Electricity use in buildings and Energy use Offset Consumption Emissions

other sites 2008/09 tonnes CO2-e PBC’s electricity use is attributed to GreenPowerTM Wind power 246 megawatt-hours 224 the offices, hospitality venues, street lights, boat harbours and parklands, Greenhouse FriendlyTM Energy efficiency 212kL 545 the BMT, pumping stations and Accredited Fuel project untenanted facilities. In 2008/2009, Air travel – Tree planting 160,000km 26 our total electricity use was 4,413MWh, January-March 2009* comprising 21% of our corporate greenhouse gas emissions (excluding * Reporting for April-June unavailable at print. the Port of Bundaberg). TM This means that as our GreenPower The 545t C02-e emissions attributed to During the year we benchmarked the purchases continue for these venues, our 212,000l of fleet fuel were offset energy performance of Port Office. With no greenhouse gas emissions will be under BP’s Global Choice program. half of the electricity use attributed to attributed to the electricity used in This represents 67% of our corporate air conditioning, we had an improved these sites. vehicle fleet emissions. cooling system designed, which is scheduled to be installed in late 2009. Corporate vehicles go diesel PBC also owns four container forklifts A similar project was completed at the PBC owns 113 on-road passenger that operate at the BMT, and heavy Visitors Centre as increased patronage vehicles and construction, environment construction equipment for earthworks demands greater air conditioning and security vehicles that operate in at our reclamation areas. Fuel used by performance. The installation of a new on-road and off-road terrain. these vehicles accounts for 7% of our diesel use. air conditioning system is planned for In early 2009 the greenhouse rating 2009/2010. criteria (based upon the Commonwealth Dredging vessels largest users Our hospitality venues – three cafés Government's Green Vehicle Guide) of diesel and the Visitors Centre – represent 15% in our corporate vehicle policy was The Brisbane undertakes maintenance of our total electricity use. This year we increased for passenger vehicles. This and capital dredging projects within our began purchasing GreenPowerTM for requires the minimum passenger vehicle port precinct, and provides contract these sites, and our purchases were greenhouse rating to be at least 5.5 out dredging services to other Queensland of 10. The air pollution rating of at least ports. The Amity is a cutter suction equivalent to a saving of 224t C02-e. 5.0 out of 10, and the greenhouse rating dredger used for development and for work vehicles of at least 3.5 out of 10, reclamation work at the river mouth. remained unchanged. Unlike the Brisbane, it is not self- Port of Brisbane electricity use BMT rail trade kilowatt-hours propelled, nor does it store dredged per annum 2006/07 2007/08 2008/09 At June 2009, the rated fuel efficiency of (’000 teus) material. 1,200,000 new passenger vehicles was 15% better Total rail trade 1,000,000 than the predominantly V6 petrol fleet in The Brisbane and Amity continue to be 800,000 place prior to the policy being adopted PBC’s largest users of diesel, accounting in February 2008. The improvement is for 66% and 22% respectively. The 600,000 attributed to a shift to diesel vehicles and vessels have high-speed diesel engines 400,000 more efficient petrol vehicles. This puts that consume ultra-low sulphur diesel 200,000 us on track to reach our Climate Change (1 part per million), thus minimising 0 Commitment target to improve the rated the sulphur dioxide and particulate OPERATIONS PORT BMT VISITORS JETTY PC1 2004/05 2005/06 2006/07 2007/08 BASE OFFICE CENTRE KIOSK CAFÉ fuel efficiency of our passenger vehicles emissions compared to similar vessels facility by 15% from 2008 levels by 2012. using other fuels. To achieve cost and fuel savings for our dredgers, during the year we evaluated alternative energy sources, vessel design, and operating improvements. This included consulting the original designer of the Brisbane to identify any possible vessel modifications. We plan to invest further in the design and adoption of the effective cost and fuel saving measures.

Sustainability Officer, Allison Brunott, and Senior Coordinator at the BMT, Clint Gee, check the 46 | Port of Brisbane Corporation Limited Annual Report 2008/2009 electricity usage data. E

Port of Brisbane – greenhouse gas emissions and energy use 2008/2009 Only Facility 1 triggers reporting

obligations under NGERS. NGERS also MANC Energy source Consumption 2008/09 Emissions Energy requires consideration of contractors’ Tonnes % GJ % emissions, such as earth works and C02-e infrastructure projects, over which PBC OR Electricity 4,413 megawatt-hours 3,792* 21 15,888 7 is viewed as having operational control. F Petrol 223kL 484 3 7,358 3 Tenants and the transport supply chain have their own reporting obligations Diesel 5,138kL 13,724 76 198,321 89 through their corporate entities. Gas (LPG) 25kL 38 0 640 0 ER Port of Bundaberg greenhouse Total 18,038 100 222,208 100 gas emissions Energy use at the Port of Bundaberg is * excludes electricity used in our hospitality venues that is generated from GreenPowerTM. attributed to electricity supplied to the

office, workshop, wharves and pumping AL P Port of Bundaberg – greenhouse gas emissions and energy use 2008/2009 station; petrol for vehicles, and diesel for T Energy source Consumption 2008/09 Emissions Energy company vehicles and marine vessels. Tonnes % GJ % Bundaberg reported a favourable 10%

C02-e drop in electricity use from 2007/2008. E N Electricity 138 megawatt-hours 123 49 497 21 Two projects that contributed to this result were the decommissioning of a Petrol 1kL 2 1 33 1 pumping station and the installation of Diesel 46kL 124 50 1,789 77 energy efficient lamps in the port office. NM Total 249 100 2,319 100 RESOURCE MANAGEMENT

Monitoring the port and its diverse RO Air travel offsets PBC is subject to mandatory greenhouse environment In the first half of 2008/2009, over and energy reporting obligations Resource management is fundamental 800,000km of air travel were undertaken under the NGER system. This includes to the sustainable operation of the port. for port-related business by Port of reporting certain greenhouse gas and A key aspect of managing the port’s Brisbane and Port of Bundaberg staff. energy data (where we exceed certain natural, built and operating environment E NVI

Since January 2009 we participated in 'facility' or corporate thresholds) from is the monitoring of this environment to the Queensland Government's air travel activities where we have operational detect change. offset initiative. From January to March control, as defined by NGERS. We are On-site monitoring of PBC’s work sites 2009, 26t C02-e of emissions, attributed required to report information from the to 160,000km of air travel, were offset. 2008/2009 period by 31 October includes waste, potable water use

this year. and energy. However, our monitoring OUR Port of Brisbane greenhouse programs extend beyond the bounds gas emissions PBC defined four facilities under which of our operational control to include Since 2002 PBC has voluntarily our corporate greenhouse gas emissions mangrove and seagrass health, migratory accounted for its greenhouse gas are to be reported. They are as follows: shorebirds, air quality, stormwater and emissions through the Commonwealth’s Facility 1: Port of Brisbane precinct groundwater quality, and exotic weeds. Greenhouse Challenge program. operations, both waterside and landside In addition, in 2007/2008, Ernst & Young See Key environmental performance indicators and targets on page 53 for a summary of the verified our corporate greenhouse Facility 2: Upriver operations, including results of some of this monitoring. gas emissions. Northshore and Corporate Office Our energy data and greenhouse gas Facility 3: Port of Bundaberg (to be divested in 2009/2010) emissions presented in this report Destination of waste have been calculated using the factors Facility 4: Contract dredging services, General waste landfill published by the Australian Government outside of the Port of Brisbane precinct. Recycled waste to landfill Department of Climate Change in Comix recycling facility the National Greenhouse and Energy Paper and cardboard recycling facility % Reporting (NGER) Determination. 100 We report our energy emissions on an 90 operational control basis as defined 80 70 by the World Resources Institute/ 60 World Business Council for Sustainable 50 Development. 40 30 20 10 0 2004/05 2005/06 2006/07 2007/08 2008/09

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 47 Senior Environmental Coordinator, Scott McKinnon, and Environment Technical Officer, Melanie Dixon, monitor the seagrass in front of the FPE.

Seagrass monitoring in the bay While the seagrass areas surrounding the port are not under our management control, we are mindful of the potential effects of the port’s operations on this sensitive area, and monitor them every two-to-three years. Our last monitoring results in 2006 indicated that the seagrass meadows adjacent to the port are not impacted by our land-management techniques. The seagrass beds in the western area of Waste improvements Water consumption down Moreton Bay fluctuate significantly most As part of PBC’s ongoing review of waste We continue to monitor and measure likely in response to seasonal changes management, we undertake summer and our water use at Port Office, Operations and storm activity. winter audits, investigating waste types, Base, reclamation office, Visitors Centre, We are currently waiting on the results of composition, and the recycling effort at and various construction sites. a pilot survey using acoustics to monitor Port Office, BMT and the Operations In 2008 we developed a Water Efficiency the seagrass. We are confident that Base. Waste generated by our hospitality Management Plan (WEMP), consistent these results will provide us with a clear venues are more correlated to patronage with the requirements of the Queensland indication of any longer-term changes rather then the number of employees; Water Commission’s water restrictions in seagrass distribution, and plan to and the Brisbane has its own recycling and the Water Act 2000. Our WEMP is resurvey these areas in 2010/2011. and waste-management practices. revised annually to include operational In 2008/2009, we adopted a seagrass We have conducted waste audits since changes and to update progress on our monitoring site adjacent to the port as 2001 and continue to see positive results ongoing water saving initiatives. part of the Seagrass Watch Program that with the total quantity of waste sent to PBC is not a large consumer of potable has been running across Queensland for landfill decreasing, and the amount of water, but we have reduced our the past 11 years. recycling increasing. This is likely due combined consumption at these facilities to staff education and improved waste New rocky reef habitat from 23.57ML per annum (2005/2006) to management practices. Recent changes In 2008/2009 we commissioned a just 2.86ML in 2008/2009. We continue have included converting our printers to study into the ecological health of the to work with our tenants, several of which a double-sided format where appropriate, 4.6km rockwall constructed in 2004 have approved WEMPs, to further reduce and the use of a paper stock with a as part of the FPE project. The study the demand for potable water. higher recycled component. revealed a fully functional reef system Mangrove Watch starts was becoming established, supporting a The quantity of general and recyclable Our biennial mangrove health range of hard and soft corals, seaweeds waste generated per employee working assessment was last carried out in and fish species. at Port Office, BMT and the Operations early 2008. It found that the mangrove Base during 2008/2009 was 44.4kg, We will continue to monitor the communities adjacent to the port at down from 46.6kg in 2007/2008. colonisation of the rockwall and consider Port Gate continue to show evidence of the value of the habitat as an important Our recycling efforts also improved. In decline in their overall health. However recreational fishing location. 2008/2009, 26.5% of recyclable waste it appears that this is not an isolated was incorrectly placed in general waste occurrence, and that mangroves across Stormwater results remain constant bins at these facilities, compared to Moreton Bay appear to be in decline. Stormwater can carry sediments, 52.6% in 2007/2008. nutrients and contaminants, such as In partnership with government agencies oils, greases and heavy metals in our The quantity of paper and cardboard and through the work of specialist waterways. By effectively managing our waste sent to recycling facilities consultants, we continue to monitor and stormwater appropriately, we are able increased in 2008/2009 to almost test relevant theories as to the cause of to minimise the impacts of the port’s 18kg per person, up from 8kg per the decline in mangrove health. Our next operations on Moreton Bay. person in 2007/2008. This is likely due scheduled review of mangrove health is to changes in work practices including planned for early 2010. In 2008/2009, our automatic stormwater the use of specialised waste paper sampler, located at Lucinda Weir, In 2008/2099, PBC committed to collection services and improved paper was triggered on seven occasions. supporting a community-based collection facilities. On three occasions, samples were Mangrove Watch Program in Moreton collected and tested for a range of Bay. Our support of $30,000 per year potential contaminants. As in previous over the next three years will establish years, results indicated that from the several monitoring sites within Moreton samples collected the stormwater Bay that will be monitored by trained quality exceeded concentrations for community volunteers. long-term water quality objectives for

48 | Port of Brisbane Corporation Limited Annual Report 2008/2009 E

selected heavy metals, suspended Nest boxes attract fauna We use an Australian Quarantine and solids, nutrients and total petroleum The 60 native fauna nest boxes installed Inspection Service (AQIS) target weed MANC hydrocarbons. within two of the port’s buffers areas last species list, and the Queensland year, have successfully attracted squirrel declared pest listing as the standard The samples that exceeded concentration

gliders, possums and native parrots. for identifying exotic weed species. OR targets for heavy metals were more often We will continue to monitor and increase Once detected, these are treated by noted in the total concentrations, than F the number of boxes in these areas our Landcare maintenance team. in the filtered concentrations. In terms when appropriate. Weed surveys conducted in November of environmental impact, the filtered 2008 and March 2009 identified concentration is generally a better ER The habitat value of the port’s buffer four AQIS weed species and nine measure of potential impacts as it is the zones is improved through regular weed Queensland weed species. We treated bioavailable component. control and fire management practices. these as soon as practical to reduce the Several replanting projects are planned Research undertaken at the port potential for spread. Copies of our weed for next year to add biodiversity to has revealed a link between the surveillance reports are sent to AQIS as

these areas. AL P suspended solids and total contaminant a condition of maintenance for our AQIS concentrations. By reducing the It has been some years since we last declared clear areas. T suspended solids, we hope to reduce undertook a feral animal (primarily We continued to work with the the total contaminant concentrations fox and cat) control program, but we Queensland Wader Study Group to carry for targeted heavy metals. The use of E N did remove four cats from the port in out monthly shorebird counts at the port. water sensitive urban design principles in 2008/2009. Uncontrolled feral Our migratory shorebird roost site and new developments, and the inclusion of animals not only have the potential areas within our reclamation paddocks these principles into existing stormwater to spread disease and compromise

continue to provide seasonal roosting NM systems, should result in a reduction customs-controlled bonded stores, habitat. With some 40,000 migratory of the suspended solids within the but have been shown to be the primary shorebirds spending the summer in stormwater that is discharged into the bay. source of predation on the migratory

Moreton Bay, our counts confirm that up RO and resident shorebirds at the port. Groundwater quality remains high to 11,000 of these birds use the port to The water table that underlays the entire In 2008/2009 we engaged the services roost at high tide in the peak of summer. port area at Fisherman Islands, provides of a qualified botanist to undertake weed This year we extended our monitoring us with data on water quality, and also surveillance checks of selected drain program to include the roosting areas in allows us to monitor the behaviour of lines around the port. Bundaberg. With the assistance of the E NVI dredged sediments used Burnett Mary Regional Group for Natural to reclaim the area. Resource Management Inc, these counts Six-monthly sampling at the nine have confirmed the importance of these groundwater wells continues to reveal areas to a range of shorebird and water no significant contamination by heavy bird species on the Fraser Coast. OUR metals or hydrocarbons. Since our monitoring commenced in 2000, the quality of the groundwater remains high and comparable to National Health and Medial Research Council standards for drinking water. Although we have no intention of using this resource for drinking, the standard provides a useful indication of the quality of the groundwater. We plan to have our groundwater data peer reviewed in the coming year, and will seek direction on future monitoring strategies as part of this review.

Squirrel gliders found in one of the nesting boxes located in the port’s buffer zone. Port of Brisbane Corporation Limited Annual Report 2008/2009 | 49 The waterside and landside inventories will establish a baseline for future strategies to reduce the port's emission.

Pollution reports are prepared by our Duty Officers on all oil and chemical spills, in accordance with MSQ requirements. As a preventive measure, we aim to inspect 30% of the oil-tanker and bunker operations of Inventory of port precinct air ENVIRONMENTAL COMPLIANCE vessels that enter the port limits each year. In 2008/2009, 37.7% of tankers emissions No Class A incidents In 2008/2009, PBC examined the fuel were inspected, compared to 31.8% in Under our IMS all environment, safety 2007/2008. use and air emissions attributed to and property incidents should be ships, trains, trucks, and cargo handling identified, reported and assessed. Environmental notices equipment within the port precinct. We classify environmental incidents Our activities operate within A waterside inventory survey, involving as either: environmental legislation administered 121 participants, was conducted by by local, state and federal authorities. Class A – incidents that have caused In 2008/2009 we did not receive any PBC with the assistance of Brisbane major or significant environmental harm Marine Pilots. Fuel use, machinery type environmental infringement notices from and operating practice information was Class B – incidents that have caused the relevant environmental regulators gathered; and the vessel movement data, serious or moderate environmental harm identifying any breach of environmental and published machinery specifications conditions, or receive any penalty Class C – incidents that have caused reviewed for all the ocean-going vessels, infringement notices relating directly minor actual, or probable environmental tugs, pilot boats, and dredgers operating to our activities. This year we received harm. in the port in 2007/2008. one vegetation notice from the Brisbane During 2008/2009, less than 1% of City Council, regarding the provision of The total fuel use, air pollution and all reported incidents were related to a firebreak along a property boundary greenhouse gas emissions were environmental matters, consistent with at a vacant site within our Northshore calculated from this data, and examined the 2007/2008 result. No Class A, one precinct. In response, we increased by vessel type, operating mode (such Class B and four Class C incidents were maintenance of the fence line. as transit through the port precinct, reported in 2008/2009. manoeuvring, and alongside the berth or Bundaberg received a pest control hotelling), machinery type, and fuel type. See table: Environmental incidents directly notice from the local authority relating The waterside inventory quantified the associated with our activities during 2008/2009 to noxious weeds. These were quickly on page 52. greenhouse gas emissions to be identified and sprayed by our Bundaberg staff. 179,437 C02-e or approximately 10 times Oil and chemical spill response greater than our corporate emissions. Under a Deed of Agreement with MSQ, Bundaberg also received a letter from A summary of the findings is shown in we are required to provide the initial DERM regarding a complaint about dust the graph below. response for any oil or chemical spills coming from port land. While it was not that may occur within port limits. an infringement notice, we inspected the Under MSQ’s direction, we assess the site. Despite not identifying any evidence Fuel consumption by vessel type nature of the spill, help to determine of dust, the site was seeded with grass, and operating mode the resources required for corrective and we prepared a revegetation plan Tonnes Hotelling Manoeuvring Transit or preventive action, and implement and additional management plan for this 20000 these actions through our First Strike and similar situations that may occur in Response Team. the future. 15000 During 2008/2009, we responded to Environmental complaints 48 oil and chemical spills that occurred 10000 We have a formally documented on our tenants’ sites and on common procedure for receiving and responding 5000 areas of the port, such as roads and to complaints. This includes a waterways. This compared with 42 in requirement to respond to each 0 2007/2008. Most spills were minor, BULK CONTAINER CRUISE GENERAL TANKER VEHICLE complaint within 24 hours. While a CARRIER CARGO CARRIER and required an initial investigation matter may not be able to be resolved and response by our Port Operations within this period, we are committed to The landside inventory is due for Coordinator. We also assisted with the ensuring that the correct action plan completion in late 2009. Together, the response to the oil spill from the Pacific is established, and that all parties are waterside and landside inventories will Adventurer. notified of the actions proposed. enable PBC to identify and prioritise See Moreton Island oil spill – part of the clean-up emission reduction opportunities and to team on page 51. In 2008/2009 we received two have a baseline against which these can environmental complaints. We be measured over time. responded to each within 24 hours. See Environmental complaints table on page 52.

50 | Port of Brisbane Corporation Limited Annual Report 2008/2009 E

Moreton Island oil spill – part of the clean-up team MANC In the early hours of 11 March 2009, the morning of 11 March found no National Park protection laws, meant

the Hong Kong registered vessel, evidence of containers or oil washed onto this was always a tough and time- OR Pacific Adventurer, encountered the eastern beach of Moreton Island, but consuming task. difficulties seven nautical miles east it quickly became apparent that the slick F Worker fatigue, impact on equipment of Cape Moreton en route from would eventually wash up along this part and resources, the remoteness of the Newcastle to Brisbane. of the coast.

Island, and related logistical issues were ER The Master of the vessel had reported By midday of 11 March, oil began washing also major considerations in need of heavy seas and gale force winds from up on Cape Moreton. Within 24 hours, oil daily assessment. a tropical cyclone located north of was reported as far north as the Sunshine In spite of these conditions, Fraser Island. For reasons yet to be Coast and extended some 15km along the approximately 3,150t of oiled sand was determined, 31 shipping containers eastern coast of Moreton Island. removed by 400 workers, often working AL P containing ammonium nitrate prills

Response teams from all relevant agencies in protective overalls in 30 degree heat T (pellets) broke free of their lashing and had already begun to make arrangements over a seven-day period. For our part, fell overboard. The Master reported that to despatch clean-up teams to these we provided decontamination teams, the containers had damaged the side

areas. The logistics of mobilising people, four-wheel drive trucks and drivers, E N of the vessel, rupturing fuel storage equipment and supporting infrastructure and key relief roles including the tanks. As a result, approximately 270t to Moreton Island presented a significant Incident Controller (our General (270,000l) of bunker oil, used to propel challenge. Manager Port Operations), Media

the vessel, was lost into the sea. NM Liaison Officer (our Communications One of our first tasks was to establish a Under the The National Plan to Combat and Marketing Executive) and decontamination site on the eastern beach Pollution of the Sea by Oil and other procurement staff.

of the Island. It was important to ensure RO Hazardous and Noxious Substances restrictions were placed on accessing The Incident Controller was responsible (The National Plan) the responsibility those areas impacted by the oil to prevent for everything from helicopter for oil spill clean-up within state coastal the chance of spreading oil-impacted sand operations, people transport and waters lies with MSQ. PBC provides across a wider region. This meant that specialised equipment to implementing a First Strike Response under the workers and vehicles had to be cleaned security, health and safety plans,

direction of MSQ. E NVI every time they exited the worksite. rosters, and the provision of food and

The response to this spill, which water for the 200 plus daily workforce, The Moreton Island clean-up relied heavily involved PBC, MSQ, state and national dedicated to the clean-up task. on workers shovelling and raking the top agencies, and Non-Government layers of sand to collect the thin layer of Many of our finance, safety and Organisations, is an outstanding oil which had been deposited across a administration staff spent several

example of teamwork and cooperation OUR large area. This technique was required weeks rostered on duty either at the in very trying and ever-changing to minimise the amount of clean sand MSQ Operations Base at Pinkenba, conditions. removed as part of the clean-up. or the Incident Control Room on PBC provided an immediate response, All oiled sand had to be placed in bags, Moreton Island. sending our Manager Environment loaded into lined bins and transported to Moreton Island within six hours of by four-wheel drive trucks and helicopter the incident being reported. The initial back to a barge for relocation to Brisbane. See www.qld.gov.au/oil-spill shoreline assessment carried out on Narrow sand tracks (which were for more information. inaccessible after rain), high tides and

Workers on the beach at Moreton Island.

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 51 Environmental complaints 2008/2009

Complaint Response PBC Reference Rubbish illegally dumped on port land. This Rubbish was removed and disposed of appropriately. 00067 was a potential fire hazard and added to the The weeds along the fence line were sprayed for midges. midge problem in the area. Concern raised regarding sand dust from a A water truck was deployed to the site to assist in dust 00070 preloaded reclamation area. suppression, and a second water truck located if required.

Environmental incidents directly associated with our activities during 2008/2009

Accident/incident Immediate action Long-term preventive action Class A – None reported Class B A land slip into a tidal drain at Port West A Restoration Plan in accordance with QPI&F* Code for Self Assessable Development caused a blockage. The blockage had the was prepared for the immediate removal of the slip material in the drain and the long-term potential to cause upstream flooding if a stabilisation of the area. significant rainfall event occurred. Class C A small amount of oil overflowed out of the The minor spill was immediately cleaned To prevent a recurrence we installed new oil level bund around the Operations Base waste oil up using the onsite spill kit and disposed indicators, a floodlight and an automatic shut-off tanks, and spilt onto the hardstand. of appropriately. valve on the Operations Base waste oil tank. Oil leaked from a damaged hydraulic line on The spill was immediately cleaned up The procedure of stopping machinery immediately a machine while it was driven to the workshop using the onsite spill kit and disposed of after detecting an oil leak, rather than proceeding for repair. appropriately. to the workshop, was reiterated in a toolbox talk. A small amount of fuel spilt on the deck and The spill overboard was contained and The procedure for overseeing the distribution of overboard when refuelling the Kooringal at the absorbed with a floating boom. The spill fuel through the gauges and valves in the vessel Operations Base. on the deck was cleaned up using the engine room was reiterated in a toolbox talk. onboard spill kit. A small amount of fuel leaked from a tourist The spill was immediately cleaned up The procedure for responding to spills was bus at the Visitors Centre into a garden bed. using the onsite spill kit and disposed reiterated during a team meeting. of appropriately.

* Queensland Primary Industries and Fisheries

Outlook Integrate sustainable practices a port wide target for emissions. At the Retain port buffers We will continue to build on our same time we will continue to work The retention of the port’s buffer understanding of the surrounding towards achieving the goals of our areas is fundamental to the environment and manage the Climate Change Commitment. separation between port operations potential environmental impacts of at Fisherman Islands and our nearest Look for dredging reuse options port operations through our ongoing residential neighbours. We will Our research into existing and new monitoring programs. We will also continue to protect and enhance the technologies and opportunities for use our lease and tender processes biodiversity of these areas, providing the reuse of dredged material will to integrate sustainable practices ongoing operational benefit to the continue. We will also seek to build throughout the port. port and our tenants. our understanding through ongoing With the completion of both the research of the possible sustainable use Maintain environmental waterside and landside emissions of Mud Island as a long-term placement accreditation surveys in late 2009, we will have area for clean dredged material. We will also maintain our ISO14001 the relevant air pollution and certification, promoting best practice The dredge strategy to improve the greenhouse gas emission data we environmental management within fuel efficiency of our dredgers will be need to prioritise actions for emission the port sector. implemented in 2009/2010. reductions and seek agreement on

52 | Port of Brisbane Corporation Limited Annual Report 2008/2009 E

Key environmental performance indicators and targets MANC Indicator 2007/08 2008/09 Target Target ✓ 2008/09 2009/10 ✗ No. of environmentally focused training 4 4 4 or more ✓ OR programs delivered to staff per year.

No. of sites tested in Brisbane River 12 18 Continue as measure ✓ F and Moreton Bay that contain material of river health unsuitable for disposal at sea.1 Total est. quantity of general and recyclable 46.6kg 44.4kg Continuous improvement ✓ ER waste generated per employee.2,6 Total est. % of recyclable material disposed 52.6% 26.5% Continuous improvement ✓ of to landfill.2 working towards 0

3,7 8 Total greenhouse gases/emissions. 21,490t CO2-e* 18,038t CO2-e Continuous improvement ✓ AL P Total energy use.3 258,849GJ 222,208GJ Continuous improvement ✓ T Total electricity use.3 5,506MWh 4,413MWh Continuous improvement ✓ Extent and condition of mangroves Increase of mangroves in poor health. Slight increase in Continue biennial monitoring 4

adjacent to the port (FI). areas of dead mangroves. E N Contamination of wetland sediments. No hydrocarbons detected at FI or WI. Elevated levels of Continue to monitor sediment arsenic found at both locations. condition

No. of AQIS target weed species identified 0 4 Six-monthly inspections of NM during Lucinda Drain survey. Lucinda Drain No. of turtles killed by the operation of 1 0 0 0 ✓

the Brisbane. RO No. of reported environmental accidents/ 7 5 0 0 ✗ incidents resulting from PBC’s practices, processes or services. No. of environmental notices issued 0 0 0 0 ✓ to PBC. E NVI

No. of environmental complaints received. 4 2 0 0 ✗ No. of system or operational 0 0 To maintain our 0 ✓ non-conformances from SAI Global’s audit systems to the highest of PBC against ISO 14001:2004. standard through regular and scheduled

external audits. OUR Quality of stormwater run-off from FI Heavy metals, suspended soils, nutrients and total Continue to monitor discharge (Lucinda Weir discharge). petroleum hydrocarbons exceeded long-term water quality objective concentrations Est. quantity of potable water used 2.62ML 2.86ML Reduction in reliance on potable ✗ directly by PBC at our FI facilities supply through substitution and at our Operations Base where possible. (including irrigation areas).5 Quality of groundwater. Average groundwater remains below the Australian Six-monthly monitoring ✓ Drinking Water Guidelines values. Ammonia levels remain above the physico-chemical indicator value for the 80th percentile guideline value for SE Qld sub-region.

1 A total of 45 sites tested within the Brisbane 3 These figures exclude Port of Bundaberg. 6 New indicator. River, including 9 sites tested between the inner TM Bar and Outer Bar Cuttings. 4 Results based on survey completed in March 7 Net of GreenPower . 2008. 2 Refers to waste data collected at the Port Office, 8 Excludes electricity used in our hospitality Operations Base and BMT, and is calculated 5 Refers to Port Office, Operations Base, Visitors venues that is generated by GreenPower™. Centre, irrigation areas and various temporary on the number of employees working at these * Carbon dioxide equivalent locations. construction sites managed by PBC on FI.

Insert caption here. Port of Brisbane Corporation Limited Annual Report 2008/2009 | 53 CORPORATE GOVERNANCE

STRATEGIC adjective. to plan a method or series of manoeuvres to obtain a specific goal or result

Caption here 54 | Port of Brisbane Corporation Limited Annual Report 2008/2009 E

IFC About this report Corporate governance includes the Principle 1 – Lay solid policies and procedures that PBC’s foundations for management IFC our Vision, MISSION Directors employ in their conduct of and oversight AND Values the organisation’s affairs, and their The Board 1 our highlights relationships with our shareholding The criteria for membership of the Board NANCER

Ministers, to whom they are responsible are in accordance with the GOC Act: V 2 our history as managers of the shareholders’ namely, that in appointing a person 3 our organisation interests in the company. as a Director, the Governor in Council

must have regard to that person’s GO 10 Chairman and CEO’s Report Our corporate governance encompasses a number of activities and functions, ability to make a contribution to the 14 our key corporate such as leadership, assurance and GOC’s commercial performance and strategies stewardship. implementation of its SCI. All appointed Directors are non-executive. For TE 18 our operational In 2009 Queensland Treasury published information on the skills, expertise and A performance the second version of its Corporate appointment terms of each Director, 30 our social performance Governance Guidelines for Government see pages 6-7. Owned Corporations. The guidelines 40 our environmental are intended to provide a framework for The Board assumes overall responsibility OR performance GOCs to develop, implement, review and for corporate governance of PBC. It monitors the performance of PBC, 54 Corporate governance report upon their corporate governance arrangements. They are based on its management and its staff, both directly and through the established 62 our Economic and the eight principles set out in the ASX P OR Financial Performance Corporate Governance Principles and Board Committees. Recommendations. This year we have C 74 Independent Limited The Board operates under a formal Assurance Report set out the corporate governance section charter that details its functions and of our Annual Report under each of the responsibilities. This has been made 76 grI Content Index eight principles, to clearly demonstrate publicly available on our website. Duties how we perform against these standards. 80 Index, including table, and responsibilities as defined by the graph and diagram index See www.ogoc.qld.gov.au/ charter include, but are not limited to: policiesandguidelines.shtml for 82 gLossary and • ensuring that appropriate processes the Corporate Governance Guidelines for abbreviations are in place for risk assessment and Government Owned Corporations. management, internal control, and 84 Port of Brisbane Map monitoring performance against 86 Contact Us agreed benchmarks • evaluating, approving and monitoring 87 Feedback form the annual budgets, Corporate Plan and SCI IBC our Financial Reports • evaluating, approving and monitoring (on CD) major capital expenditure (subject to shareholding Ministers’ approval), capital management and all corporate transactions • appointing, monitoring, managing the performance of, and, if necessary, terminating the employment of the Chief Executive Officer • monitoring performance in relation to principles of best-practice corporate governance. See www.portbris.com.au/ corporation/corporategovernance/ The Board assumes board_charter for our Board Charter. overall responsibility for corporate governance, and monitors the performance of PBC, its management and staff.

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 55 Director induction and continuing Performance evaluation of senior The Chairman and Chief Executive professional education executives Officer discuss and finalise the agenda A process is in place for the induction The Board is responsible for appointing, for each meeting, which routinely of all new Directors. This involves the monitoring, managing the performance includes: monthly reports on PBC’s participation of the Chairman, the of, and, if necessary, terminating the financial and non-financial performance relevant Board Committee Chairman, employment of the Chief Executive (through a Chief Executive Officer’s Chief Executive Officer, Company Officer. The Chief Executive Officer’s Report detailing the activities of each Secretary, and all other members of the performance is evaluated annually by the division), quarterly due diligence reports, Executive Team. Chairman and Deputy Chairman against and commercial and governance a set of Key Performance Indicators, decisions requiring resolution. Each Board members are familiarised with which are approved by the Board each meeting also includes presentations by their responsibilities as a Director, their year. This evaluation occurred during PBC staff or invited guests on issues role as a Committee member, the Code the 2008/2009 year and the result was impacting the organisation. Board papers of Conduct and other applicable policies. deemed acceptable by the Board. are circulated in paper format one week To explain the role and diverse activities before the meeting, to enable Directors to of PBC, each General Manager provides Senior executive performance is request additional information to support new Directors with a thorough briefing on evaluated by the Chief Executive Officer them in their decision-making. the role of their division. every six months in accordance with PBC’s established Development and Board committees An online handbook, in the form of a Performance System. Accordingly, The Board may delegate its powers Board website, has been developed. reviews were conducted twice during to a committee of Directors. PBC has This provides Directors with secure 2008/2009. three such committees: the Audit access to corporate and government and Risk Committee, the People and policies, committee charters, meeting Principle 2 – Structure the Culture Committee, and the Planning, dates, committee agenda papers, and board to add value Construction and Environment Committee. daily news updates on issues affecting Board meetings the organisation. Ten meetings of the Board were held These committees have up to four Directors as members, one of whom Directors are advised of the various during the year. The table on page 61 is appointed as Chairman by the workshops, seminars and conferences provides details of Directors’ attendance Chairman of the Board. The Chief on offer to update their skills and at those meetings. Executive Officer and the other relevant knowledge, so that they can undertake members of management also attend their role effectively. A Directors’ committee meetings. Continuing Professional Education (CPE) Policy sets out the approval process for Each of the committees has its own CPE opportunities and the appropriate charter. funding arrangements. See www.portbris.com.au/ corporation/corporategovernance for our Board committee charters. Director independence The following materiality thresholds are included in the Directors’ Independence Policy: • a material professional adviser or consultant is one whose fees to PBC in a financial year exceed $100,000 • a material supplier is one the value of whose sales to PBC in a financial year exceeds 2% of the value of our total purchases • a material customer is one the value of whose purchases from PBC in a financial year exceeds 2% of our revenue • a material contractual relationship, other than any of those described above, is one in which the consideration payable under the contract exceeds $100,000.

Members of the Board’s People and Culture Committee: 56 | Port of Brisbane Corporation Limited Annual Report 2008/2009 Loftus Harris, David Harrison (Chairman), and Glen Toll. E

Materiality is assessed on a case-by- Independent professional advice Principle 4 – Safeguard case basis from the perspective of Directors have agreed on a procedure integrity in financial both PBC and the relevant Director, which allows them to seek independent reporting having regard to the Director’s individual professional advice, at PBC’s expense, Audit and Risk Committee circumstances. in carrying out their duties. PBC has an Audit and Risk Committee NANCER

The Board may determine that the Port of Bundaberg that meets a minimum of four times a V year, and at year-end comprised Susan Director is independent notwithstanding In 2009/2010, our responsibility for Rix (Chairman), David Harrison, and the existence of a relationship of the kind the Port of Bundaberg will be

Peter Lancaster. The membership of this GO referred to above. However, the Board transferred to GPC, as part of the committee changed during the financial will state the reasons for making its Queensland Government’s Renewing year, with the first three meetings determination in such a case. Queensland plan. attended by Sue Palmer, and the last All our Directors are deemed to be Principle 3 – Promote ethical one by Susan Rix. TE independent against these thresholds. and responsible decision- A The qualifications of Audit and Risk making Board performance evaluation Committee members have been Ethical standards and disclosure Every two years, an evaluation of the included in Directors’ biographies on

of interests OR performance of the Board is undertaken pages 6-7. Attendance at meetings is to assist Directors to identify the A Directors’ Code of Conduct has been included in the table on page 61. strengths and weaknesses of the Board developed, and approved by the Board. and identify areas for improvement. It is reviewed annually and then signed The responsibilities of the Committee by each Director. include, but are not limited to:

An evaluation was completed during P OR the year and finalised in April 2009. See www.portbris.com.au/ • ensuring compliance with statutory It was facilitated by an independent corporation/corporate responsibilities relating to accounting C third-party consultant, and took the governance/code_of_conduct for our policy and disclosure by review of form of a questionnaire and interview- Directors' Code of Conduct financial statements • assessing the adequacy of accounting, based process, which focused on Our Directors’ Code of Conduct key governance areas like board financial and operational controls includes our policy for trading in • assessing the quality, and reviewing competencies, structures and securities by Directors. It also refers to behaviours. the scope, of work and reports of the our provisions for enabling employees internal auditors The consultant concluded that the to alert management of misconduct, • enabling the auditors to communicate Board had performed well with a very consistent with the requirements of the any concerns to the Board via strong overall performance rating. The Whistleblowers Protection Act 1994. the Committee, independently of evaluation showed that the Board: Each Director is required to sign management influence • had very good working relationships a confidentiality agreement at • identifying any related-party with the senior management team commencement of their directorship and transactions • provided good oversight on key an annual disclosure of interests form, to • assessing the effectiveness of the business activities identify any areas of activity that may lead management of business risk and the • had a strong understanding of its to a conflict of interest. Each meeting of reliability of management reporting obligations the Board commences with a declaration • monitoring PBC’s compliance with the • had an appreciation of the attributes of of interests by Board members. Directors Maritime Security Plan. a high performing Board. absent themselves from the meeting while any matters of potential conflict of The consultant also made several interest are discussed, and all reference recommendations on potential areas to these matters is removed from the of Board development, and these are copy of the minutes that they receive. currently being implemented. The final evaluation report was also sent In addition to the Directors’ Code of to shareholding Ministers. The next Conduct, we have an Employees’ Code evaluation is planned for the of Conduct. An online learning program 2010/2011 year. has been developed to ensure that employees understand the provisions of the Code, and they are required to repeat this every two years to remind themselves of the Code’s requirements. In addition, face-to-face training sessions are held for all new employees as part of their induction. A copy of the Code of Conduct is distributed at these sessions and is also available on our Intranet for ease of reference.

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 57 The Committee also assumes primary Internal audit review Schedule of interests responsibility for risk management. The Audit and Risk Committee defines At the commencement of the year This entails: the internal auditor’s scope of work PBC had two subsidiaries, namely through establishment of an annual Bundaberg Port Corporation Pty • monitoring the operation of the internal audit plan. It reviews the reports Ltd (since 1 October 2007) and GIC risk-management system of the internal auditor, and assesses the (since 15 May 1999). On 5 December • liaising with management to ensure quality of work performed. 2008, the Treasurer issued a direction that there is a common understanding under section 14 of the Airports Assets of the key risks to PBC (which are The Audit and Risk Committee Chairman (Restructuring and Disposal) Act 2008, to clearly documented in a risk register) meets regularly with the internal auditor, PBC and the Board of PBC, to approve • monitoring all risk-management independently of management. and arrange for the execution and functions within PBC, and ensuring delivery of a share transfer agreement, that appropriate risk-management Ernst & Young has now been our internal and a transfer of the shares in GIC from activities are being undertaken for auditor since January 2001. Towards PBC to QIC Infrastructure Management all key risks, including financial and the end of 2008 we tested the market Pty Ltd. GIC ceased as a member non-financial (such as operational) through a tender process, and as a result of the PBC consolidated group on risks. (Oversight of occupational Ernst & Young was re-appointed for 15 December 2008. See page 21 in health and safety and environmental another two years. Notes to the Financial Statements for risk-management activities is the During the year Ernst & Young submitted further information (on CD). responsibility of the People and internal audit reports on: Culture, and Planning, Construction Principle 5 – Make timely and • Balanced Scorecard and Environment Committees balanced disclosure • Follow Up of Prior Internal Audit respectively.) Corporate planning and reporting Recommendations • determining the Risk Management The Board has approved a Shareholder Policy for PBC, including: • Controlled Self Assessment • IT Change Management Communication Policy. This policy sets risk-management philosophy, out the framework for providing our responsibilities and reporting, risk • Program Management Review • Internal Audit Plan 2009 shareholding Ministers with sufficient assessment and evaluation criteria, information to maintain an informed view risk appetite; and risk tolerances, • Asset Accounting • Storage Area Network. of PBC and its operations, and to maintain for approval by the Board. effective relationships with management The Audit and Risk Committee has Directions and notifications given and the Board. The policy includes a observed the terms of its charter, which under the GOC Act range of formal and informal periodic and has due regard to the Queensland We received one direction from our ongoing communication measures. shareholding Ministers during the past Treasury’s Audit Committee Guidelines We present a five-year Corporate Plan (January 2000). financial year. This was in relation to the transfer of our shares in Gateway and 12-month SCI for shareholding See www.portbris.com.au/ Investments Corporation Pty Ltd (GIC) Ministers’ approval annually. The SCI corporation/corporate to Queensland Investment Corporation forms the basis of the performance governance/audit_committee to read (QIC). GIC was the subsidiary through contract between the Board and the Audit and Risk Committee Charter. which PBC owned shares in Brisbane shareholding Ministers. Status reports to Airport Corporation Holdings (BACH). shareholding Ministers are submitted on External audit arrangements a quarterly basis. Performance against In accordance with the GOC Act and the See Schedule of Interests below for more information. key targets and result areas is reported Financial Administration and Audit Act monthly to the Board. 1977, PBC uses the Queensland Audit Dividend policy Office as its external auditor. Our dividend policy takes into account The Chairman and Chief Executive the return that shareholders expect from Officer seek quarterly meetings with their investment, and the ongoing capital- our shareholding Ministers. They also investment requirements of our business. request ad hoc meetings as required, In December 2008, the Board paid a when there are issues of significance special dividend to shareholders from to discuss. In addition, Directors and the proceeds of the sale of the balance shareholding Ministers are advised of of our shares in BACH (as mentioned any issues that may arise, as well as our above). In June 2009, shareholders successes. This is done through written approved the Board's recommendation briefings as required. of a further dividend payment of 80% See www.portbris.com.au/ of after-tax operating profit, adjusted corporation/corporategovernance for the accounting impact of the BACH to read the Shareholder Communication share sale and any unrealised capital Policy. gains arising from revaluation of investment properties.

58 | Port of Brisbane Corporation Limited Annual Report 2008/2009 E

Due diligence reporting See www.portbris.com.au/ Quality standard maintained A system of compliance and due corporation/corporate We maintained our accreditation diligence reporting to the Board has governance/risk_management for our and received no non-conformances been established. The Board seeks Risk Management Policy. in the surveillance audits of our NANCER management representation on a range Our Risk Management Policy supports systems under ISO 9001:2008 – the of issues, including workplace health a structured and focused approach recognised international standard for V and safety, the environment, the Trade to managing risk. This complements processes affecting quality. The auditors Practices Act 1974, consultant and the strategies adopted to achieve the complimented us on an effective contractor selection, equal employment corporate objectives, and increase implementation of the standard across GO opportunity, industrial relations, IT, confidence in, and enhance the value the organisation, and acknowledged litigation and public liability. Management that we provide to our stakeholders. our staff for their positive input to the overviews are also provided at quarterly, audit process. half-yearly and annual intervals. Issues The principles behind this policy are TE based on the Australian/New Zealand This standard is a major component

raised are monitored or acted upon, A of our Integrated Management System as required. Standard AS/NZ 4360:2004 Risk Management, and on Principle 7 of the (IMS), which incorporates international Principle 6 – Respect the rights Queensland Government’s Corporate and national standards of quality, of shareholders Governance Guidelines for Government occupational health and safety, and OR This principle requires GOCs to respect Owned Corporations – February 2009. environmental management systems, the rights of shareholding Ministers and as well as maritime safety and rail. During 2008/2009, we completed the their representatives, having regard to the Planning, Construction and requirements of responsible government, implementation of our Enterprise Wide Environment Committee P OR and facilitate the effective exercise of Risk Management System. The system To further address the risks we face on a those rights. GOCs should not only has been reviewed by our internal C social and environmental level, we have a comply with existing legal and regulatory auditors to assess its reliability, and we Planning, Construction and Environment requirements, but also go beyond them will further refine the system to ensure Committee that meets quarterly, and at where relevant in order to build credibility that we maintain our best-practice year-end comprised Catherine Sinclair and confidence. principles. (Chairman), Ted Brown, Peter Low and PBC’s Shareholder Communication Ongoing risk identification and review Bill Guest. Policy, as described previously, sets out of internal processes continues to be The committee’s responsibilities include, both the formal and informal measures a key focus of day-to-day operations. but are not limited to: through which our shareholding Ministers Our risk systems underpin our key are kept up-to-date with corporate corporate strategies. • ensuring compliance with statutory information. At all times, PBC staff and As part of our corporate culture to environmental and planning Directors strive to ensure proactive, continually improve, we have developed obligations timely and thorough communication an overall strategic risk management • monitoring adherence to the with government. framework. This involves identifying our Environmental Management Program and policies Principle 7 – Recognise and strategic risks, identifying the controls • ensuring incorporation of sustainable manage risk that we need to have in place to address development principles into all areas of Strategic risk management and them, and then auditing critical controls of those risks. port operation and development quality systems • overseeing coordination with other Our philosophy towards risk is not to The risk-assessment process considers agencies, customers and stakeholders be risk averse, but to enable risks to a number of key risk areas, such as our on environmental and disaster be identified, discussed, mitigated, and reputation, and the political, strategic planning, including consideration of monitored in a balanced manner. We are business, financial, social, economic, emergency response plans. committed to maintaining and integrating safety, and environmental risks. our risk-management systems and The qualifications of Committee processes to support this philosophy, We have developed a platform that members have been included in without creating an unnecessary burden involves four risk registers, including: Directors’ biographies on pages 6-7. on the business. Strategic; Assurance and Governance; Attendance at meetings is included in Environment, Community and Human the table on page 61. Our Risk Management Policy sets Resources; and Safety and Quality out the processes, responsibility, and Assurance. Within each of these accountability for risk management at registers, risks are identified and rated. PBC. It recognises that risk management We then apply our control and assurance is an integral part of good management process to establish the residual risk. and corporate governance practice, and that, in relation to commercial strategy, an element of risk is inevitable and, in some cases, encouraged.

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 59 Principle 8 – Remunerate fairly While PBC does not have a specific Key elements of the strategy are and responsibly Remuneration Committee, the People as follows: and Culture Committee considers People and Culture Committee • the link to the at-risk or incentive remuneration arrangements for all PBC has a People and Culture payment of 15% applies only to the employees. Committee that meets a minimum of Executive Team and non-award staff. three times a year, and at year-end The Committee reviews the remuneration Award staff receive a net payment of comprised David Harrison (Chairman), of non-award employees, including $500 if they achieve the individual Loftus Harris and Glen Toll. senior executives, every year, in goals agreed with their General The qualifications of People and Culture accordance with PBC’s Development Manager, and a further $500 net Committee members have been and Performance System, and Chief and payment if predetermined corporate included in Directors’ biographies on Senior Executive Remuneration Policy. goals are achieved • work-value assessments, conducted pages 6-7. Attendance at meetings External consultants provide Directors by external remuneration specialists, is included in the table on the with the necessary reports to compare are used as the basis for determining opposite page. remuneration levels with the approved market remuneration rates for all non- industry sector. The People and Culture Committee’s award positions. responsibilities include, but are not Remuneration levels for award limited to: The following are other pertinent employees are reviewed through the details relating to our determination of • monitoring procedures for dealing enterprise bargaining process. remuneration for non-award staff: with human resources and industrial Performance payments relations issues and policies • total fixed remuneration for all The objectives of PBC’s Development non-award staff is set up to the • providing strategic direction for human and Performance System are to: resource management, training, market median for the work value planning and development • provide role clarity, reduce of each position, as advised by an • making recommendations to the subjectivity, and encourage people independent remuneration consultant Board on remuneration issues to take ownership of their • remuneration increases are contingent • ensuring compliance with statutory development progress upon the individual at least meeting occupational and workplace health • achieve our corporate goals their performance objectives and safety standards through alignment of divisional and • remuneration increases cannot exceed • monitoring adherence to PBC’s health, individual objectives 10% in any year safety and quality policies • develop a commercially focused • overall, PBC aims to pay all non-award • monitoring performance against PBC’s organisation committed to excellence staff to within 90% of the assessed strategic objectives for workplace in customer-service delivery market median health and safety under AS 4801. • develop our employees in areas • an ‘at-risk’ or incentive component that enhance both business and (paid in the form of a one-off lump Remuneration arrangements for personal success sum) of up to 15% above the policy Directors and senior executives • recognise and reward people for their line/market rate, may be awarded if: The Directors of the Company are to achievement and contribution a) the employee exceeds, or far be paid by way of fees for their services • improve organisational exceeds, their individual objectives the amounts, if any, approved by the communication. and behaviours; and Company in general meeting. The b) the relevant divisional corporate compensation arrangements for the The Development and Performance goals have been exceeded Chief Executive Officer and senior System is monitored to ensure • employees must ‘re-earn’ the incentive executives are determined by the Board. consistency and fairness in approach, component each year. and the privacy and confidentiality of Chief Executive Officer and senior the individual’s information is respected executive remuneration is set within and maintained. a remuneration policy approved by the Board, in accordance with the For all non-award staff, the system Government Owned Corporations incorporates a remuneration component. Governance Arrangements for Chief and Our remuneration reward strategy Senior Executives of February 2009. supports efforts aimed at achieving performance goals and demonstrating Details of remuneration to Directors and consistency with our identified senior executives are disclosed in the Leadership Behaviours. It is linked to Notes to the Financial Statements (see the achievements of the individual, pages 35-36 of Financial Statements on as determined by their performance CD), in accordance with remuneration management rating. disclosure requirements of GOCs.

60 | Port of Brisbane Corporation Limited Annual Report 2008/2009 E

Directors’ Attendance at Board and Committee Meetings

Board (10 held) Audit and Risk People and Culture Planning, Construction Committee (4 held) Committee (3 held) and Environment Committee (4 held) NANCER David Harrison 9 4 3 V Catherine Sinclair 10 4 Bill Guest 10 4

Ted Brown 9 3 GO

Glen Toll 8 2 Peter Lancaster 9 2 Peter Low 8 4 TE

Loftus Harris 10 3 A Sue Palmer 5 (out of 7) 3 (out of 3) Susan Rix 1 (out of 1) 1 (out of 1) OR

2008/2009 Corporate Entertainment and Hospitality expenses over $5,000 In 2008/2009, the Board sought and obtained agreement from the shareholding Ministers to make two modifications to PBC's 2008/2009 Statement of Corporate P OR

Intent, to include additional information in relation to sponsorship, advertising, C corporate entertainment, donations and other arrangements.

Event Date Cost ($) Family Day (biennial staff event) October 2008 25,269 Dinner Dance (annual staff event) July 2008 26,151 Corporate Christmas Cocktail Function (annual customer event) November 2008 16,213 Ports Australia Conference (biennial industry conference) October 2008 10,000 Brisbane Customer Forum (End-of-financial year customer forum) August 2008 12,773 Rugby package (customer event) July/September 2008 16,000 Soccer World Cup Qualifier (customer event) October 2008 9,900 Total 116,306

Outlook A key focus for the Board over We will also continue to further develop the next 12 months will be on our strategic risk-management system successfully preparing our business in accordance with the AS 4360-2004 for the privatisation process. The Risk Management standard, to ensure priority will be to ensure our corporate ongoing close scrutiny of our key governance practices will hold us business strategies. in a strong position throughout this demanding transition period.

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 61 OUR ECONOMIC AND FINANCIAL PERFORMANCE

STRENGTH noun. the quality or state of being strong; power; force; vigour

Caption here 62 | Port of Brisbane Corporation Limited Annual Report 2008/2009 E

IFC About this report Financial Trend Analysis to 30 June 2009 MANC IFC our Vision, MISSION 2005 2006 2007 2008 2009 AND Values $M $M $M $M $M Income statement 1 our highlights OR Operating revenue 189.1 271.6 282.7 606.6 677.4 2 our history F Operating expenses including 46.7 49.8 57.9 62.6 74.6 3 our organisation employee benefits

10 Chairman and CEO’s Report Depreciation/amortisation 25.0 18.7 22.2 35.8 31.5 ER EBIT 117.4 203.1 202.6 508.2 571.3 14 our key corporate strategies Finance costs 25.4 32.0 33.5 10.9 23.4 Income tax expense 28.0 50.8 54.2 58.5 91.9 18 our operational performance Net profit after tax 64.0 120.3 114.9 438.8 456.0 Dividends provided for or paid 28.0 35.8 49.6 205.7 339.1 30 our social performance Balance sheet 40 our environmental performance Total assets 1,609.0 1,893.3 2,268.5 2,231.8 2,732.8 Total liabilities 738.6 925.1 1,077.2 1,072.3 1,281.8 54 Corporate governance Net assets/shareholders’ equity 870.4 968.2 1,191.3 1,159.5 1,451.0 62 our Economic and Financial Performance Revenue Composition

74 Independent Limited 2005 2006 2007 2008 2009 Assurance Report $M $M $M $M $M 76 grI Content Index Trade-related charges 64.7 70.6 77.6 86.9 84.5 Rentals 31.3 33.9 42.7 50.6 66.5 80 Index, including table, graph and diagram index Services 19.6 16.6 19.5 22.1 27.2

82 gLossary and Other 24.7 42.1 67.0 66.8 25.6 abbreviations Subtotal 140.3 163.2 206.8 226.4 203.8

84 Port of Brisbane Map Fair value gains on investment 48.3 108.0 75.6 104.3 259.4 property MIC AND FINANCIAL P MIC 86 Contact Us Net gains on disposal of - - - 275.9 214.2

87 Feedback form financial assets O Total 188.6 271.2 282.4 606.6 677.4 IBC our Financial Reports N (on CD)

There has been good revenue growth, driven by growth in trade and increases in property O rentals from new leases and higher land values. Services revenue is up on last year, due to

dredging contracts and security cost recovery. Other revenue has decreased due to the timing C of sales of inventory and property, plant and equipment.

Operating Results in excess of $259 million in revenue. Earnings However, asset revaluations have Earnings before interest and taxation increased the cost of capital charge, (EBIT) for the year amounted to partially offsetting these gains.

$571.3 million, of which $214.2 million Work in progress continues to E OUR was due to the sale of our remaining unfavourably impact economic profit, shares in BACH. A further $259.4 million as a number of projects in our significant was a result of the fair value gain on our capital expenditure program are not investment properties. Operational EBIT yet generating income. The capital therefore amounted to $97.7 million. program has accelerated in recent Economic Value Management (EVM) years given the number of major projects, EVM measures profit after subtracting which has resulted in a larger work-in- the cost of capital and adjustments for progress amount and associated non-cash items. impact on economic profit. However, this expenditure will contribute strongly The result for EVM of $159.7 million to future returns. was dominated by the revaluation of our investment properties, which contributed Our General Manager Finance and Business Services, Darryl Mutzelburg.

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 63 Trade revenue Dredging operations continue to provide Depreciation, amortisation Trade revenue declined by $2.4 million economic benefit to PBC, contributing and impairment expense from 2007/2008 to $84.6 million for the $14 million to other revenue. This was Depreciation, amortisation and year ($7.2 million less than budget). $4.8 million over budget and $2.9 million impairment expense totalled This decrease was largely attributable above the previous year. $31.5 million for 2008/2009, a to the global financial crisis and the $4.3 million decrease from 2007/2008. Other services such as our hospitality subsequent decline in consumer This decrease was mainly due to a venues, the BMT and our security spending. However, a decrease in reduction in asset impairment expense, services, contributed $14.8 million to imports of full containers was partially which accounted for $7.3 million. other revenue. counter-balanced by increased exports Finance costs of coal and agricultural products. Interest revenue totalled $4.6 million, an increase of $2.7 million from the previous Finance costs increased to $45.2 million Fair value gains on investment year. This was mainly due to the short- before capitalisation of $21.8 million, properties term investment of the proceeds from the resulting in a net finance cost of We continued to achieve record fair BACH share sale. $23.4 million. This was an increase value gains due to investment property of $12.4 million from 2007/2008. valuations. An independent revaluation Employee expenses The increase was due to additional resulted in a fair value gain of Employee benefit expenses totalled loan borrowings of $70 million and $259.4 million, compared to our $34.3 million, an increase of $4.8m or an increase in borrowing rates. All budgeted amount of $200 million. 16% on 2007/2008. This was due to pay borrowings are sourced from the Our investment property portfolio now increases from enterprise bargaining and Queensland Treasury Corporation (QTC) exceeds $1 billion in value. We have the need to recruit additional positions, and are unsecured. achieved consistent growth in this which is a direct result of our continued Income tax expense portfolio, as a result of continued capital growth. Full-time equivalent employees Income tax expense totalled $91.9 million, investment in our landholdings. increased from 331 to 378 during the year, a 14% increase. an increase of $33.5 million from Gain on sale of assets 2007/2008. The effective tax rate of The net gain on asset sales totalled Operating expenses 16.8% (calculated as total tax expense $233.4 million. This was mainly due Operating expenses before capitalised divided by NPBT*), was also slightly to the sale of our remaining shares in internal development costs totalled higher than the 2007/2008 rate of 11.8%. BACH, through our subsidiary company $57.3 million, which was $3.1 million over Our effective tax rate was much lower Gateway Investments Corporation Pty budget and a $2.6 million increase on than the income tax rate of 30%, mainly Ltd (GIC). The sale resulted in a net 2007/2008. However, this was mainly due to the income tax treatment on the gain of $214.2 million for our 12.4% the result of large increases in land tax profit from the sale of the BACH shares. shareholding. In December 2008, (a $3 million increase over last year and we sold GIC to a subsidiary of the $5.6 million over budget) and the Of the $91.9 million expense, Queensland Investment Corporation. $4.1 million major refit of the Brisbane. $77.8 million was attributable to the fair value gain on investment properties. We also continued our strategy to As a reaction to the slowdown in our This was offset by an $8.4 million over dispose of non-core land in conjunction trade revenue, resulting from the global provision from the previous year, as a with providing developed sites for sale financial crisis, we further reviewed result of finalisation of the 2007/2008 in precincts like Eagle Farm, Colmslie, our operations with the purpose of research and development claims. Pinkenba and Hamilton. generating additional efficiencies and savings. We were able to reduce costs Income tax is paid to the Queensland Other revenue in areas like advertising and promotion, Government under the provisions of the Other revenue increased by $4 million services and consultants, materials National Tax Equivalents Regime (NTER). from 2007/2008. This was despite the and supplies, and staff training and * Net profit before tax inclusion in 2007/2008 of dividend development. As a direct result of the revenue of $12.3 million and a $6.6 million review, we were able to achieve a saving market value gain on payout of the loan on operating expenses of $5.6 million held by GIC. compared with 2007/2008 ($3.4 million Rental revenue increased by $16 million under budget for those items). to $66.5 million from the previous year, and this was $14.8 million over budget. This was mainly due to continued rental reviews associated with land valuation increases.

64 | Port of Brisbane Corporation Limited Annual Report 2008/2009 E

Balance Sheet Other Ratio Analysis

Assets Suppliers Rate of return on total assets is used MANC At 30 June 2009, assets under As a result of our significant capital to measure the rate of return earned management totalled $2.73 billion, investments and ongoing operating by management through operating an increase of $501 million from activities, we annually incur significant activities. We achieved a 23.2% return OR 2007/2008. The increase was mainly amounts on goods and services. on assets in 2008/2009, compared to F due to the revaluation of our non-current our target of 13.4%. The extra return The value of goods and services sourced assets, including investment property was mainly due to the $214.2 million from Queensland suppliers totalled 93%, unbudgeted sale of shares in BACH.

and property, and plant and equipment. ER of which 88% came from within the We also invested an additional Excluding the share sale, we achieved a greater Brisbane area. 6% was sourced $155.6 million in assets through our rate of return of 14.4%, which was still 1% from the local Wynnum/Manly area. capital program. better than budget and 4.1% better than Our spending pattern injects 2007/2008. This increase occurred despite the sale significant activity into the local and of our BACH shares, the divestment of Return on equity for 2008/2009, state economies. We have been able several non-core land parcels, and the adjusted for the profit on the BACH share to maintain this high level of local sale of developed sites. sale, equated to 18.5%, which was 2.8% expenditure due to the continued growth better than our target of 15.7%. Our Cash holdings increased by $5.5 million, of the port precinct and our commitment 2008/2009 return was 4.6% higher than while receivables decreased by to land and infrastructure development. the previous year, in spite of the global $22.1 million. Our $10.5 million current Sustainable procurement financial crisis. This was mainly due to tax asset, at 30 June 2008, was realised Our capital expenditure and purchases the better than expected fair value gain following the lodgement and settlement of goods and services also present an on our investment properties. of our 2007/2008 income tax return. opportunity to enhance our economic Our financial stability indicators, debt/ Inventories increased by $19.5 million performance by incorporating social equity ratio and interest cover again from 2007/2008, mainly due to the and environmental aspects into the highlighted our ability to sustain transfer of assets from work-in-progress. transaction. As a result, we have started operations in the long term, and satisfy Our inventories are comprised of land to develop a Sustainable Procurement our long-term commitments. and buildings that are available for sale, Strategy to broaden and strengthen our held in suburbs including the Brisbane commitment to sustainable procurement. Our debt/equity ratio (long-term CBD, Colmslie, Hamilton, Eagle Farm, borrowings divided by total equity) During the year we met with a cross- Pinkenba and Bulwer Island. reached 48% compared to our target of section of our main suppliers, ranging 58% and our 2007/2008 result of 54%. Liabilities from product suppliers and maintenance This was due to better than expected net Total liabilities increased by $209.5 million services to infrastructure contractors, to

profit after tax, resulting from the sale of AND FINANCIAL P MIC to $1.28 billion. This was mainly due to an gain their input into the strategy. Their shares in BACH, the fair value gains for increase of $156 million in our provision input was vital in shaping the strategy for investment properties, and our loan draw O for deferred income tax, and a $70 million its implementation in 2009/2010. downs being less than anticipated. increase in loan borrowings. Trade N We have also established sustainable Interest cover, which is an indication of

creditors decreased by $18 million. O guidelines for many of the products our ability to satisfy our interest payments

Equity that we purchase on a regular basis, from current year profits, reached 16.6 C Contributed equity remained unchanged including stationery, computers and at 30 June 2009. This result, adjusted at $324.3 million. Asset revaluation monitors, and cleaning products. We down for the elimination of the sale of our reserves increased by $174.7 million, now purchase photocopy paper with a shares in BACH, surpassed our target which was a direct result of the minimum 50% recycled content, and all of 8.3. $298.9 million revaluation increment of our hospitality venues only serve Fair property, plant and equipment, offset Trade coffee.

by the $124.2 million elimination of our E OUR Productivity Financial Asset Reserve following the Productivity, as measured by teus per sale of shares in BACH. quayline metre, dropped this financial Retained profits increased by year. This was due to a decrease in the $116.9 million. This was a result of our number of containers that came through net profit after tax of $456 million, the port, and the addition of extra less dividends paid and declared of quayline following the commissioning for $339.1 million. Wharf 10. Future productivity is expected to increase to previous levels with the increase of trade expected over coming years. We will continue to encourage best-practice service-delivery standards, to ensure our long term competitiveness.

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 65 Outlook 2009/2010 Financial Targets projects’. Under section 5(1)(b) the Our asset values have increased due We have committed to achieving the disposal of all or part of the businesses, to major asset revaluations and the following financial performance targets assets and liabilities of PBC is a ‘declared completion of Berth 10 and the General in 2009/2010: project’. The Port of Bundaberg will be Purpose Berth. However, due to the transferred to GPC prior to the disposal global financial crisis, this increased Performance Target 2009/10 Budget of the businesses, assets and liabilities asset base has not been offset by higher EBIT $176.6 million of PBC. trade revenue. EBITDA $206.0 million At balance sheet date there is significant uncertainty around the timing and nature We have substantial landholdings where NPAT $108.4 million increases in land values are reflected of the disposal. in increased rental income. In fact, our Return on Assets 6.4% Audited financial statements rental income is expected to surpass Return on Equity 7.6% This year, in order to reduce the length trade income within the next five years. Debt/Equity 57% and weight of our printed Annual Report, Our diverse range of income will Current Ratio (excluding 1.25 we have published our audited financial assist us in improving our returns to dividend payable) statements on a CD (located in the shareholders, and provide us with cash Interest Cover 4.52 inside back cover). The statements flow to implement our significant capital are downloadable in PDF format from works program. the CD, and are also available from our Future Developments website. We have provided a Financial We are also successfully divesting On 2 June 2009, the Queensland Review section over following pages, ourselves of non-core land assets, in Government announced its intention allowing readers to get a concise conjunction with providing developed to undertake a significant asset overview of our financial performance sites for sale, and these are achieving sale program. without needing to refer to the commercially sound returns. statements. Notwithstanding, we consistently review The Infrastructure Investment (Asset our operations in order to generate Restructuring and Disposal) Act efficiencies and savings. These savings 2009 was passed to facilitate the have been reflected in our Corporate restructure and disposal of particular Plan for 2009-2014. businesses, assets and liabilities of government entities. The Act grants extensive powers to the Treasurer to direct the restructuring, disposal or Darryl Mutzelburg other processes necessary for the General Manager Finance and sale program with respect to ‘declared Business Services

Performance against SCI Excluding PBC's actual performance during transfer the year exceeded most targets Statement of Corporate Intent 2008/2009 of shares Key Performance Indicators in BACH set in the SCI. Actual Actual Target A summary of actual performance Result Results against these targets is set out in EBIT $571.3 M $357.1 M $318.7 M the following table: EBITDA (EBIT before Depreciation and Amortisation) $602.8 M $388.6 M $345.7 M NPAT $456.0 M $241.8 M $191.8 M Return on Assets (EBIT divided by average assets) 23.0% 14.4% 13.4% Return on Equity (NPAT divided by average equity) 34.9% 18.5% 15.7% Debt/Equity 47.85% 47.85% 58% Interest Times Cover (EBITDA divided by interest expense) 25.8 16.6 8.3 Current Ratio 1.4 1.4 1.5 Tonnage 31.9 M 31.9 M 32.2 M Teus 896,199 896,199 1,000,000

66 | Port of Brisbane Corporation Limited Annual Report 2008/2009 W E VI

FINANCIAL PERFORMANCE AGAINST BUDGET Actual Budget Revenue Total revenue exceeded budget by $264.3 million. 300 RE The BACH share sale accounted for $214.2 million of this, while fair value gains on investment property accounted for $59.4 million. 250 Trade revenue is derived from harbour dues and wharfage charges for use of the port and PBC’s wharves, respectively. 200 Service revenue is primarily derived from PBC's dredging activities in Queensland and other ports, but it also includes the BMT, 150 security and hospitality venue revenue. $ million Inventory sales are from non-strategic land sales at up-river sites. 100

50 FINANCIAL FINANCIAL

0 TRADE RENTAL SERVICES SALES REVALUATIONS OTHER BACH

Expenses Operating costs were over budget, mainly due to Actual Budget greater than expected land tax. 45

Finance costs for PBC were favourable by $18.5 million, resulting 40 from less than expected borrowing requirements, and greater than expected capitalised interest. 35

Depreciation and amortisation expenses exceeded budget by 30 $4.5 million, of which $1.3 million was due to unbudgeted impairments. 25

$ million 20

15

10

5

0 EMPLOYEE OPERATING DEPRECIATION/ FINANCE BENEFITS EXPENSE AMORTISATION COSTS

ProfitabilityEBIT, at $571.3 million, exceeded our target of Actual excl BACH BACH Budget $318.7 million by $252.6 million. EBITDA, at $602.8 million, 700 exceeded our target of $345.7 million by $257.1 million. EBIT excluding the sale of BACH shares totalled $357.1 million, 600 which exceeded the budget target of $318.7 million, and EBITDA at $388.6 million exceeded the budget target of $345.7 million. 500 This was mainly due to higher than budgeted fair value gains on investment properties. 400

$ million 300

200

100

0 EBIT ACTUAL EBIT BUDGET EBITDA ACTUAL EBITDA BUDGET

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 67 FINANCIAL PERFORMANCE 5-year analysis Trade charges Rentals Services Other Revenue Rental revenue continued to rise in line with 250 increases in property valuations and new leases. This was offset by a slight decrease in trade revenue, resulting from the global financial crisis. 200 Dredging and other services increased in 2008/2009. Other revenue decreased from 2007/2008, due to the $6.6 million market value gain on the extinguishment of the loan in respect to BACH 150 shares (in 2007) and a decrease in the profit on the sale of assets. Revaluation gains and the sale of BACH shares have been excluded from this graph. 100 $ million

50

0 2004/05 2005/06 2006/07 2007/08 2008/09

Expenses Depreciation, amortisation and impairment Employee benefits Operating expenses Dep/amortisation expenses increased compared to previous years, due to an 120 increase in our asset base.

Operating expenses are shown after deducting the cost-of-works 100 capitalised to the relevant assets, and are therefore significantly affected by major fluctuations between years in the level of works capitalised. 80 Employee benefits expense increased by 16.2%, due to increases

from enterprise bargaining, the need to recruit additional $ million 60 employees, and a full financial year of BPC employees who became PBC employees at 1 October 2007. Operating expenses increased by $7.2 million. This was mainly 40 due to a $3 million increase in land tax, and a $3.6 million increase in repairs and maintenance resulting from the biennial refit of 20 the Brisbane.

0 2004/05 2005/06 2006/07 2007/08 2008/09

EBIT increased, mainly due to the sale of our remaining EBIT Investment property gains BACH shares in BACH and the fair value gain on our investment 600 properties. This, along with steady improvement in rental revenue and related 500 services, has boosted seaport EBIT over the past five years.

400

$ million 300

200

100

0 2004/05 2005/06 2006/07 2007/08 2008/09

68 | Port of Brisbane Corporation Limited Annual Report 2008/2009 W E VI

Borrowing costs Interest expense after capitalisation of Seaport Airport borrowing costs increased in 2008/2009, as a result of 35 RE additional borrowings and an increase in interest rates. 30 Seaport debt increased by $70 million, which reflects our current commitment to the capital works program. 25 Borrowing costs of $21.8 million were capitalised to assets constructed during the period. 20

$ million 15

10

5 FINANCIAL

0 2004/05 2005/06 2006/07 2007/08 2008/09

NPAT increased by 3.9% to $456 million. NPAT Investment property gains BACH 500 Excluding the effects of the sale of shares in BACH, NPAT increased by $79 million from 2007/2008. This was solely due to the increase in fair value gain from the revaluation of our investment properties. 400

300 $ million 200

100

0 2004/05 2005/06 2006/07 2007/08 2008/09

Taxes and dividends After consultation with shareholding Dividend Income tax Land tax CNF* BACH dividend Ministers, the Board recommended a dividend payout of 500

80% of realised after tax profits for the current year. 450

We operate under a tax equivalents regime, and pay income 400 and other taxes to the state on an equivalent basis to a private company. Income tax expense resulting from the fair value gains 350 on investment properties is held in the Deferred Tax Liability account, and will only be paid when the capital gain on the 300 properties is realised. 250

Total payments to the state will exceed $360 million for the $ million 200 2008/2009 year. A special dividend of $291 million, relating to the sale of BACH 150 shares, was paid in December 2008. 100

50

0 2004/05 2005/06 2006/07 2007/08 2008/09 * Competitive neutrality fee

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 69 Total assets Asset growth for the seaport has been significant over the past five years, increasing from 3000 $1.63 billion in 2004/2005, to $2.73 billion in 2008/2009.

This year our consolidated assets increased by $501 million from 2500 2007/2008. This was mainly due to a revaluation increase of $686.3 million on our investment property, and property plant and equipment, in addition to a $155.6 million increase from our capital 2000 investment program.This increase was offset by a $246 million

reduction in asset value due to the sale of our shares in BACH. $ million 1500 Significant developments for the year included the continued development and construction of port infrastructure. This included land reclamation, property development and construction of 1000 additional berths and wharves, all required to keep pace with future trade growth. 500

0 2004/05 2005/06 2006/07 2007/08 2008/09

Capital Expenditure We have maintained a significant capital expenditure program over recent years, to increase 200 future revenue and develop infrastructure for the long-term 180 benefit of the port. 160 This year saw significant expenditure on major infrastructure projects including the General Purpose Berth, Wharves 11 140 and 12, Port West, Northshore Hamilton, and reclamation at Fisherman Islands. 120

100 $ million 80

60

40

20

0 2004/05 2005/06 2006/07 2007/08 2008/09

Interest-bearing liabilities Borrowings remain at Seaport Airport Bundaberg a sustainable level. 800

Borrowings increased by $70 million to $694.3 million, 700 due to additional borrowings in seaport-related debt. Strong assets and earnings growth enables PBC to use 600 borrowings to fund capital investments. 500

$ million 400

300

200

100

0 2004/05 2005/06 2006/07 2007/08 2008/09

70 | Port of Brisbane Corporation Limited Annual Report 2008/2009 W E VI

Shareholder equity remains strong, at $1.5 billion. Contributed equity Asset revaluation reserve Retained profits

1600 RE At corporatisation in 1994, shareholder equity was Retained Profits $339 million. Since then, the book value of shareholder 1400 equity has grown significantly through retained earnings and growth in asset values. This in part reflects our strategy of Asset Revaluation Reserve 1200 increasing asset utilisation, as well as the growth in market value of the port precinct. 1000 Contributed Equity This growth in equity has occurred even with significant distribution of dividends to shareholders throughout this time. $ million 800 Equity increased in 2008/2009, due to a $456 million increase in retained earnings and a $298.9 million increase 600 in our asset revaluation reserves. A special dividend of $291 million was paid to the state 400 following the sale of shares in BACH. Contributed equity remained at $324.3 million. 200 FINANCIAL

0 2004/05 2005/06 2006/07 2007/08 2008/09

Return on assets recorded a substantial increase ROA – Operations Investment property gains BACH this year to reach 14.4%, after deducting the 30 $214.2 million profit on the sale of shares in BACH. ROA has increased over the past few years due to strong 25 growth in EBIT, largely because of fair value gains in investment property. ROA before fair value gains in investment property has 20 reduced, due to the increase in our asset base. This increase was a result of the revaluation of investment property, and property, plant and equipment. 15 Percentage (%) Percentage 10

5

0 2004/05 2005/06 2006/07 2007/08 2008/09

Return on equity also recorded an increase, ROE – Operations Investment property gains BACH reaching 18.5% after deducting the $214.2 million 40 after-tax profit on the sale of shares in BACH. ROE has increased significantly over the past few years as 35 a result of strong growth in NPAT, largely due to fair value gains on investment property. 30 ROE before fair value gains in investment property has 25 reduced due to the increase in equity. This was a result of gains through the revaluation of investment property, and 20 property, plant and equipment.

Percentage (%) Percentage 15

10

5

0 2004/05 2005/06 2006/07 2007/08 2008/09

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 71 Income statement for the year ending 30 June 2009

CONSOLIDATED PARENT 2009 2008 2009 2008 Notes $’000 $’000 $’000 $’000 Revenues from continuing operations Trade revenues 3 84,539 86,917 84,000 86,588 Fair value gains on investment property 1 (xi),16 259,421 104,328 259,139 104,328 Gain on sale of inventory 1(ix),4 2,685 9,854 2,685 9,854 Other 5 99,991 95,998 420,202 75,518 Operating revenues 446,636 297,097 766,026 276,288

Other income 6 230,736 309,465 16,351 33,615 Total revenue 677,372 606,562 782,377 309,903

Expenses from continuing operations Employee benefits expense 1(xv) 34,266 29,496 33,175 28,888 Operations expense 1(iv),7 40,270 33,108 39,032 31,589 Depreciation, amortisation and impairment expenses 1(v),1(vi),1(xiii),16,17,18 31,525 35,833 29,729 35,431 Finance costs 1(vii),8 23,390 10,947 23,390 7,957 Total expenses from continuing operations 129,451 109,384 125,326 103,865

Profit from continuing operations before income tax expense 547,921 497,178 657,051 206,038 Income tax expense 1(viii),1(xviii),9 91,936 58,468 91,953 55,880 Net profit 455,985 438,710 565,098 150,158

The above income statement should be read in conjunction with the accompanying notes.

72 | Port of Brisbane Corporation Limited Annual Report 2008/2009 Balance sheet W as at 30 June 2009 E VI CONSOLIDATED PARENT 2009 2008 2009 2008

Notes $’000 $’000 $’000 $’000 RE Current assets Cash and cash equivalents 32 (b) 16,245 10,772 15,635 10,428 Trade and other receivables 10 31,073 72,117 30,863 71,705 Inventories 11 71,640 52,115 71,640 52,115 Current tax asset 12 – 10,548 – 10,548 Other 13 5,552 5,571 5,497 5,496 124,510 151,123 123,635 150,292 Available-for-sale financial assets 14(a) – 246,000 – – Total current assets 124,510 397,123 123,635 150,292

Non-current assets FINANCIAL Trade and other receivables 10 18,903 – 18,903 – Financial assets 14(b) – – – 1 Investment property 16 1,053,966 819,633 1,044,094 809,574 Property, plant and equipment 17 1,529,031 1,007,691 1,505,909 986,927 Intangibles 18 2,256 2,133 2,013 1,945 Deferred tax assets 19 4,119 5,182 4,089 5,178 Total non-current assets 2,608,275 1,834,639 2,575,008 1,803,625 Total assets 2,732,785 2,231,762 2,698,643 1,953,917

Current liabilities Trade and other payables 21 86,288 105,076 86,127 104,836 Current tax liabilities 22 815 – 501 – Other 23 623 669 607 669 Total current liabilities 87,726 105,745 87,235 105,505

Non-current liabilities Financial liabilities 24 694,288 624,288 663,990 628,175 Deferred tax liabilities 25 492,461 335,806 489,370 286,200 Provisions / Other 23,26 7,293 6,464 6,398 6,464 Total non-current liabilities 1,194,042 966,558 1,159,758 920,839 Total liabilities 1,281,768 1,072,303 1,246,993 1,026,344 Net assets 1,451,017 1,159,459 1,451,650 927,573

Equity Contributed equity 27 324,290 324,290 324,290 324,290 Reserves 28(a) 494,449 319,811 493,639 195,595 Retained profits 28(b) 632,278 515,358 633,721 407,688 Total equity 1,451,017 1,159,459 1,451,650 927,573

The above balance sheet should be read in conjunction with the accompanying notes.

This year, in order to reduce the length and weight of our printed Annual Report, we have published our audited financial statements on a CD, provided in the inside back cover. The statements are downloadable in PDF format from this CD, and are also available from our website.

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 73 Independent limited assurance report

Independent Limited Assurance Statement to the Directors of the Port of Brisbane Corporation in relation to social and environmental reporting

Scope of Our Engagement We have carried out a limited assurance engagement in relation to selected components of the Port of Brisbane Corporation’s (‘the Port of Brisbane’) ‘Annual Report 2008/2009’ (‘the Annual Report’), in order to state whether anything has come to our attention to suggest that the Subject Matter detailed below has not been reported in accordance with the Criteria listed below. The scope of our limited assurance engagement is based on the subject matter over which we provide assurance and the criteria used to evaluate or measure that subject matter. This is the fourth year that the Port of Brisbane has sought independent assurance over its publicly reported social and environmental performance. In previous years, the Port of Brisbane has published a standalone ‘People and Environment Report’. However, this year the Port of Brisbane has integrated reporting of its social and environmental performance with the Annual Report. Subject Matter The Subject Matter for our limited assurance engagement included: 1. The Port of Brisbane’s adherence to the AA1000 AccountAbility Principles of Inclusivity, Materiality and Responsiveness. 2. The Port of Brisbane’s reported performance data and claims, relating to three sustainability priorities within the boundaries as defined in the ‘Our Organisation’ section of the Annual Report, being: • Dredging • Climate change • Community The three sustainability priorities were selected by the Port of Brisbane. Their process for identifying the specific sustainability priorities selected for review is recorded in the ‘About this report’ section of the Annual Report. Criteria The Port of Brisbane has reported performance indicators, statements and claims related to the three sustainability priorities in accordance with the subject matter described above. The following criteria have been applied: 1. The Principles of Inclusivity, Materiality and Responsiveness, as defined in the AA1000 AccountAbility Principles Standard 2008 2. The Port of Brisbane’s description of its systems and approaches used to manage the three sustainability priorities, as described throughout the Annual Report 3. The Port of Brisbane’s own reported criteria for: • Number of sites tested in Brisbane River and Moreton Bay that contain material unsuitable for disposal at sea, as defined on pages 43 to 44 of the Annual Report • Total greenhouse gas emissions and energy use, calculated using the factors in the National Greenhouse and Energy Reporting (Measurement) Determination, as defined on page 47 of the Annual Report • Total electricity use, as defined on page 46 of the Annual Report • Number of turtles killed by the dredging operation of “the Brisbane”, as defined on page 43 of the Annual Report • Number of community complaints, as defined on page 37 of the Annual Report • Amount spent on community support (donations, sponsorships and community tours), as defined on page 39 of the Annual Report • Spend on community support as above as a percentage of pre-tax profits, as defined on page 39 of the Annual Report Port of Brisbane Management Responsibilities The Annual Report has been prepared by the management of the Port of Brisbane (‘Management’). Management are responsible for the collection and presentation of information within the Annual Report and for maintaining adequate records and internal controls that are designed to support the sustainability reporting process and to manage adherence to the AA1000 Principles. There are currently no prescribed requirements relating to the preparation, publication and assurance of sustainability reports. Ernst & Young Responsibilities Our responsibility, in accordance with Management’s request, was to carry out a limited assurance engagement in relation to the Subject Matter and to express a conclusion about the Subject Matter information. Our assurance procedures have been planned and performed in accordance with the International Federation of Accountants’ International Standard for Assurance Engagements Other Than Audits or Reviews of Historical Financial Information (‘ISAE 3000’) and the AA1000 Assurance Standard 2008. Specifically, our procedures were designed in accordance with a ‘Type 2 – AccountAbility Principles and Performance Information’ assurance engagement. Level of Assurance Our procedures were designed to obtain a limited level of assurance on which to base our conclusions. The procedures conducted do not provide all the evidence that would be required in a reasonable assurance engagement and accordingly we do not express a reasonable level of assurance. While we considered the effectiveness of management’s internal controls when determining the nature and extent of our procedures, our limited assurance engagement was not designed to provide assurance on internal controls.

74 | Port of Brisbane Corporation Limited Annual Report 2008/2009 ORT P Work Performed In order for us to provide a conclusion in relation to the above scope of work, we have sought to answer the following questions: • Inclusivity: Has the Port of Brisbane been engaging with stakeholders across the business to develop its approach to sustainability? • Materiality: Has the Port of Brisbane provided a balanced representation of material issues concerning its sustainability performance? • Responsiveness: Has the Port of Brisbane responded to stakeholder concerns with the Annual Report? • Completeness and accuracy of performance information: Has the Port of Brisbane provided a fair representation of the three sustainability E RE priorities within the Annual Report? Our assurance procedures included, but were not limited to: • Understanding the Port of Brisbane’s business through discussions with key personnel and participating in a tour of the Fisherman Island

operations. ANC • Interviewing key personnel to understand processes for stakeholder engagement across the organisation. • Assessing Port of Brisbane’s process to determine material issues and reporting against these through interviewing key personnel and viewing evidence of the materiality assessment process and risk registers. • Assessing the organisation’s responsiveness and awareness of material issues, through reviewing Port of Brisbane policies, processes and targets, and communication of responses to stakeholders. • Interviewing key personnel to understand the activities relating to the three sustainability priorities in the reporting period.

• Checking a selection of Port of Brisbane documentation and publicly available information relating to sustainability management SSUR and performance. • Sample testing the data collection, aggregation and disclosure processes for the three sustainability priorities. • Checking the Report to determine whether material risks and opportunities and performance issues identified during our procedures on the

three sustainability priorities had been adequately disclosed. D A Limitations of Our Work Performed Our scope of work did not include: • Assessing the accuracy, fairness or balance of data sets, statements, information, systems or approaches relating to areas other than the three sustainability priorities. • Performing assurance procedures at the Port of Bundaberg. • Management’s forward looking statements. • Any comparisons made against historical data, with the exception of sustainability priorities which overlap with our 2007-08 and 2008-09 limited assurance engagements. • Assessing whether the Port of Brisbane’s reporting meets the requirements of its application level of the GRI G3 Sustainability Reporting Guidelines. TE T LIMI • Reviewing the accuracy or completeness of data sets presented in the GRI Content Index. • Assessing the effectiveness of any management systems or approaches. N

Restriction of Use E Our responsibility in performing our limited assurance activities is to the Directors of the Port of Brisbane only and in accordance with the terms of reference for this engagement as agreed with them. We do not therefore accept or assume any responsibility for any other purpose or to any other person or organisation. Any reliance any third party may place on the Subject Matter is entirely at its own risk. ND Our Independence The Australian firm and all professional personnel involved in this engagement have met the independence requirements of Australian E

professional ethical requirements. Ernst & Young has provided a range of services to the Port of Brisbane including but not limited to the provision P of certain internal audit services. We believe the provision of these services has not impaired our independence with respect to this work. E Our Assurance Team Our assurance team includes specialists from our Climate Change and Sustainability Services network, which undertakes similar engagements with a number of Australian and international businesses. Our team has the required competencies and experience to undertake this engagement. IND Conclusion On the basis of our procedures and criteria for this limited assurance engagement nothing has come to our attention that causes us to believe that the Port of Brisbane does not manage its sustainability performance in accordance with the Principles of Inclusivity, Materiality and Responsiveness as defined in the AA1000 AccountAbility Principles Standard 2008. Further, nothing has come to our attention that causes us to believe that the performance statements, claims and performance indicators relating to the three sustainability priorities are not presented fairly and, where relevant, are not calculated in accordance with methods selected by management as being appropriate for the purpose of disclosure in the Annual Report 2008/2009.

Ernst & Young Brisbane, Australia 25 September 2009

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 75 GRI CONTENT INDEX

Our Annual Report 2008/2009 has been prepared with reference to the G3 GRI Sustainability Reporting Guidelines.

We have reported to an application level C, which includes the relevant Profile Disclosures and a minimum of ten Performance Indicators, either core or additional, including at least one indicator in the Economic, Environmental and Social dimensions.

Standard Disclosures Profile Page reference 1: STRATEGY AND ANALYSIS 1.1 Statement from the CEO and Chairman. 10-13 1.2 Key impacts, risks and opportunities. 4-5; 14-17; 59 2: ORGANISATIONAL PROFILE 2.1 Name of the organisation. FC 2.2 Primary brands, products and/or services. 4; 41 2.3 Operational structure of the organisation. 3-5 2.4 Location of organisation’s headquarters. 86 2.5 Number of countries where the organisation operates. 3-5 2.6 Nature of ownership and legal form. 4 2.7 Markets served. 4 2.8 Scale of the reporting organisation. 63-66 2.9 Significant changes during the reporting period. IFC; 4; 13 2.10 Awards received in the reporting period. 13 3. REPORT PARAMETERS 3.1 Reporting period. FC 3.2 Date of most recent previous report. FC 3.3 Reporting cycle. FC 3.4 Contact point for the report. IFC 3.5 Process for defining report content. IFC 3.6 Boundaries of the report. 3-5 3.7 Limitations on the scope or boundaries of the report. IFC; 3-5 3.8 Reporting on joint ventures, and other entities. CD Financial Report 3.9 Data measurement techniques. 39; 53 3.10 Explanation of the effect of any re-statements of information provided in earlier reports. 4; 13; 26 3.11 Significant changes from previous reporting periods. IFC; 39; 53 3.12 Table of the Standard Disclosures. 76-79 3.13 Independent assurance for the report. IFC; 74-75

76 | Port of Brisbane Corporation Limited Annual Report 2008/2009 EX GRI CONTENT INDEX T IND N TE N O

Standard Disclosures Profile Page reference I C 4: GOVERNANCE, COMMITMENTS, & ENGAGEMENT

4.1 Governance structure. 6-7; 55-61 GR 4.2 Chair of the highest governance body. 6-7 4.3 Independent and/or non-executive members. 6-7 4.4 Mechanisms for shareholders and employees to provide recommendations or direction 56; 58 to the highest governance body. 4.5 Compensation and performance. 60; CD Financial Report 4.6 Processes to ensure conflicts of interest are avoided. 57 4.7 Process for determining the qualifications and expertise of the members of the highest governance body. 55-56 4.8 Mission or values, codes of conduct, and principles. IFC; 55 4.9 Management of economic, environmental, and social performance. 59-61 4.10 Processes for evaluating the highest governance body’s own performance. 57 4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organisation. 59 4.12 Externally developed economic, environmental, and social charters. 74-75 4.13 Memberships in associations. 6-7 4.14 List of stakeholder groups engaged by the organisation. IFC; 4; 36 4.15 Basis for identification and selection of stakeholders with whom to engage. IFC 4.16 Approaches to stakeholder engagement. 36; 65 4.17 Key issues and concerns raised through stakeholder engagement. IFC; 36

Key GRI application level Fully reported C C+ B B+ A A+ Not reported/not applicable AR Annual Report Mandatory Self declared ✓ IFC Inside front cover FC Front cover CORE Core indicator Optional Third party checked ADD Additional indicator

GRI checked Report externally assured Report externally assured Report externally assured Report externally

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 77 Core Indicators are those indicators Additional Indicators are those indicators identified in the GRI Guidelines to be identified in the GRI Guidelines that of interest to most stakeholders and represent emerging practice, or address assumed to be material, unless deemed topics that may be material to some otherwise on the basis of the GRI organisations but not generally for Reporting Principles. a majority.

Standard Disclosures: Performance Indicators Page reference ENVIRONMENTAL PERFORMANCE INDICATORS CORE EN1 Materials used by weight or volume. CORE EN2 Percentage of materials used that are recycled input materials. CORE EN3 Direct energy consumption by primary energy source. 46-47 CORE EN4 Indirect energy consumption by primary energy source. 47 ADD EN5 Energy saved due to conservation and efficiency improvements. ADD EN6 Initiatives to provide energy-efficient or renewable energy based products and services. ADD EN7 Indirect to reduce indirect energy consumption and reductions achieved. CORE EN8 Total water withdrawal by source. ADD EN9 Water sources significantly affected by withdrawal of water. ADD EN10 Total volume of water recycled and reused. CORE EN11 Land in areas of high biodiversity value. 41 CORE EN12 Impacts on biodiversity in protected areas. ADD EN13 Habitats protected or restored. ADD EN14 Managing impacts on biodiversity. ADD EN15 Number of IUCN Red List species. CORE EN16 Total direct and indirect greenhouse gas emissions. 46-47 CORE EN17 Other indirect greenhouse gas emissions. 46-47 ADD EN18 Initiatives to reduce greenhouse gas emissions. 46-47 CORE EN19 Emissions of ozone-depleting substances. CORE EN20 NO, SO, and other significant air emissions. CORE EN21 Total water discharge. CORE EN22 Total weight of waste by type and disposal method. CORE EN23 Total number and volume of significant spills. 50-51 ADD EN24 Weight of treated waste, deemed hazardous under the terms of the Basel Convention Annex I, II, III and VIII. ADD EN25 Biodiversity value of water bodies and related habitats significantly affected by discharges of water and run-off. CORE EN26 Impacts of products and services. CORE EN27 Products sold and their packaging materials that are reclaimed. CORE EN28 Fines, and total number of non-monetary sanctions for non-compliance with environmental laws and regulations. ADD EN29 Impacts of transporting products and other goods and materials. ADD EN30 Total environmental protection expenditures and investments. HUMAN RIGHTS PERFORMANCE INDICATORS CORE HR1 Investment agreements that include human rights clauses. CORE HR2 Suppliers and contractors that have undergone screening on human rights. ADD HR3 Employee training on human rights. CORE HR4 Total number of incidents of discrimination and actions taken. 33 CORE HR5 Risk to freedom of association and collective bargaining. CORE HR6 Risk for incidents of child labour. CORE HR7 Risk for incidents of forced or compulsory labour. ADD HR8 Security personnel trained in human rights. ADD HR9 Incidents of violations involving rights of indigenous people.

78 | Port of Brisbane Corporation Limited Annual Report 2008/2009 EX

Standard Disclosures: Performance Indicators Page reference T IND LABOUR PRACTICES AND DECENT WORK PERFORMANCE INDICATORS N CORE LA1 Total workforce. 31 CORE LA2 Employee turnover.

ADD LA3 Benefits for full-time employees. 34 TE

CORE LA4 Percentage of employees covered by collective bargaining agreements. 34 N CORE LA5 Minimum notice period(s) regarding operational changes. O ADD LA6 Workforce represented in formal health and safety committees. 32 CORE LA7 Absenteeism rates and number of work-related fatalities.

CORE LA8 Programs in place regarding serious diseases. I C CORE LA9 Health and safety in formal agreements with trade unions.

CORE LA10 Training per employee. GR ADD LA11 Skills management and lifelong learning that assist employees in managing career. ADD LA12 Employees receiving performance and career reviews. 39 CORE LA13 Workforce by diversity. 34 CORE LA14 Ratio of basic salary of men to women by employee category. SOCIETY PERFORMANCE INDICATORS CORE SO1 Manage the impacts of operations on communities. 36-37 CORE SO2 Analysis on corruption. CORE SO3 Employees trained on anti-corruption. CORE SO4 Actions in response to corruption. CORE SO5 Public policy positions and lobbying. ADD SO6 Political donations. ADD SO7 Anti-competitive behaviour, anti-trust, and monopoly practices. CORE SO8 Fines and non-monetary sanctions for non-compliance with laws and regulations. PRODUCT RESPONSIBILITY PERFORMANCE INDICATORS CORE PR1 Life cycle stages of products and services. ADD PR2 Non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services. CORE PR3 Product and service information required by procedures. ADD PR4 Non-compliance with regulations and voluntary codes concerning product and service information. ADD PR5 Customer satisfaction. CORE PR6 Marketing communications, including advertising, promotion and sponsorship. ADD PR7 Non-compliance with regulations and voluntary codes concerning marketing communications. ADD PR8 Complaints regarding breaches of customer privacy. CORE PR9 Monetary value of significant fines. ECONOMIC PERFORMANCE INDICATORS CORE EC1 Direct economic value generated and distributed. 63-73 CORE EC2 Financial implications. CORE EC3 Organisation’s defined benefit plan obligations. CORE EC4 Significant financial assistance received from government. ADD EC5 Standard entry level wage compared to local minimum wage at significant locations of operation. CORE EC6 Spending on locally-based suppliers. 65 CORE EC7 Procedures for local hiring. CORE EC8 Development and impact of infrastructure investments and services. ADD EC9 Indirect economic impacts.

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 79 INDEX

A Dredging 43 L About this report IFC Dredging in boat harbours 43 Land Use Plan 15, 26, 41, 45 Air emissions 1, 36, 42, 50 Due diligence 42, 56, 59 Landside Logistics Forum 36 Amity 32, 42, 46 E Learning and development 17, 33, 39 AS/NZ 4360 – 2004 59 E-Teams 1, 37, 38 Liabilities 63, 65, 66, 70, 73 Assets 1, 4, 11, 12, 63, 64, 65, 66, 68, 69, 70, Earnings before interest and tax (EBIT) Lost Time Injuries (LTIs) 1, 5, 12, 17, 32, 39 71, 73 63, 66, 67, 68, 71 M Audit and Risk Committee 6, 7, 56, 57, 58, 61 Economic performance 63 Mangrove monitoring 5, 37, 41, 47, 48, 53 Australia TradeCoast 6 Electricity use 46, 47, 53, 74 Manly Boat Harbour 5, 25, 29, 37, 43 Australian Amalgamated Terminals (AAT) Employee benefits 34, 63, 68, 72 Maritime Security Plan 57 22, 84 Employee communication 31, 34 B Materiality IFC, 13, 56, 75 Employee numbers 31, 39 Mission IFC Balance Sheet 63, 65, 66, 73 Environmental complaints 50, 52, 53 Moreton Bay Marine Park 5, 22, 41, 42, 45 Berth 10 1, 11, 22, 66 Environmental incidents 16, 50, 52 Moreton Island oil spill 51 Berths 11 and 12 9, 11, 22, 29 Environmental KPIs 53 Motor Vehicle Precinct 85 Board of Directors 3, 6, 7 Environmental management system N Brisbane 4, 22, 32, 33, 42, 43, 45, 46, 48, 53, 1, 16, 41, 59 64, 65, 68, 74 Net profit after tax (NPAT) 66, 69, 71 Ethical standards 57 Brisbane Airport Corporation Holdings New Port Office 8, 15, 25 Executive Team 3, 5, 8, 9, 13, 56, 60 (BACH) 11, 58, 63, 64, 65, 66, 67, 68, 69, 71 Northshore Hamilton 9, 24, 70 Expenses 61, 63, 64, 67, 68, 72 Brisbane City Council (BCC) 4, 37, 50 O F Brisbane Multimodal Terminal (BMT) Oil spills 50 3, 4, 5, 8, 11, 20, 24, 26, 29, 32, 46, 48, 53, 64, Fauna and flora monitoring 49 67, 84, 86 Organisational structure 3 Financial review 66 Built environment 41 Our boundaries 4 Future Port Expansion (FPE) 1, 21, 22, 23, Bundaberg Port Authority (BPA) or 42, 43, 48 Our community 5, 36 Bundaberg Port Corporation (BPC) G Our environment 5, 41 4, 7, 68 Government Owned Corporation (GOC) Our organisation 3 Business risks 5 Act 1993 4, 6, 8, 55, 58 Our stakeholders 4, 36 C Greenhouse gas emissions 1, 12, 35, 42, P Capital expenditure 1, 21, 55, 63, 65, 70, 46, 47, 50, 74, 78 Patrick 1, 11, 14, 20, 22, 41, 84, 85 Captain Bishop Bridge 8, 11, 22, 29 Greenhouse gas offsets 46 People and Culture Committee 6, 7, 56, City Reach 4, 12, 15, 25, 29, 37, 38 Groundwater monitoring 47, 49, 53 60, 61 Climate Change Commitment 1, 12, 16, H Performance evaluation 56, 57 42, 46, 52 Heavy Transit Corridor 15, 22, 24, 29 Planning, Construction and Environment Community complaints 37, 38, 39, 74 Highlights 1 Committee 6, 7, 42, 56, 58, 59, 61 Community support 37, 39, 74 Hospitality venues 9, 36, 46, 47, 48, 53, Port limits 5 Company GOC 2, 4 64, 65 Port Central 5, 24, 25, 33, 37, 41, 45, 85, 86 Container trade 14, 19, 20 Hutchison Port Holdings Limited (HPH) Port Gate 11, 14, 15, 21, 26, 29, 36, 48, 84 Corporate governance 7, 9, 55, 59 11, 22 Port of Brisbane Motorway 24, 29 D I Port tours 5, 36 Debt/equity ratio 65 Income Statement 63, 72 Portcareers 13, 16, 31, 33, 34, 36, 38 Department of Transport and Main Integrated Management System (IMS) Port West 4, 8, 11, 14, 15, 21, 29, 52, 70 Roads (DTMR) 4 50, 59 Pricing review 14 Department of Environment and ISO 9001 17, 59 Privatisation 4, 8, 9, 12, 13, 38, 61 Resource Management (DERM) 4, 25, 42, ISO 14001 1, 16, 53 43, 44, 45, 50 J Productivity strategy 1, 12, 16, 26 Diversity 11, 12, 13, 16, 17, 31, 33, 35, 36, 41, Profitability67 5, 37, 86 49, 52 Jetty Kiosk K Q Dividends 63, 65, 69, 71 Queensland Government 2, 4, 6, 13, 24, 25, DP World 11, 14, 22, 84 Key Performance Indicators (KPIs) 14, 39, 53, 66 31, 36, 37, 47, 57, 59, 64, 66 Dredged material management 42, 43

80 | Port of Brisbane Corporation Limited Annual Report 2008/2009 EX INDEX

R Table, graph and diagram index Major infrastructure projects (table) 22 IND Reclamation 3, 5, 8, 15, 22, 29, 35, 43, 44, 45, Age profile – all employees (graph) 31 Net crane rate (graph) 28 46, 48, 49, 52, 70, 84 Areas where sediment sampling NPAT (graph) 69 Remuneration 34, 60 44 occurred 2009 (diagram) Our Key Corporate Strategies (tables) 14-17 Revenue 1, 11, 14, 19, 29, 56, 63, 64, 66, 67, Average container exchange Our Stakeholders (table) 4 68, 70, 72 per vessel (graph) 27 Performance against SCI – financial Risk management 3, 9, 12, 26, 58, 59, 61 27 Berth utilisation (graph) (table) 66 S 20 BMT rail trade (graph) Port limits (diagram) 5 Safety committees 32, 33, 39, 79 69 Borrowing costs (graph) Port of Brisbane electricity use (graph) 46 Safety incidents 32 Capital expenditure (graph) 70 Port of Brisbane – greenhouse gas Scarborough Boat Harbour 15, 26, 29 Class A incidents during emissions and energy use Seagrass monitoring 48 2008/2009 (table) 32 2008/2009 (table) 47 Security 1, 3, 4, 8, 24, 31, 32, 37, 46, 51, 63, Community complaints 2008/2009 Port of Bundaberg – greenhouse 64, 67, 78 (table) 38 gas emissions and energy use Shareholding Ministers 3, 4, 6, 13, 14, 36, Contaminant concentrations (table) 45 2008/2009 (table) 47 55, 57, 58, 59, 69 Corporate Entertainment and Profitability (graph) 67 Ship visits 20, 27 Hospitality expenses (table) 61 Return on assets (graph) 71 Social KPIs 39 Crane intensity (graph) 28 Return on equity (graph) 71 Spitfire Channel 43 Directors’ Attendance at Board Revenue (graph) 67, 68 Stevedores 4, 14, 28, 36 61 and Committee Meetings (table) Revenue composition (table) 63 Stormwater monitoring 47, 48, 49, 53 68 EBIT (graph) Shareholder equity (graph) 71 Sustainable planning 4 31 Employee length of service (graph) Ship arrivals (graph) 27 T Environmental complaints 2008/2009 Ship visits 2008/2009 (graph) 20 U (table) 52 Stakeholder engagement 2008/2009 52 Urban Land Development Authority Environmental incidents (table) (table) 36 (ULDA) 24, 29 Expenses (graph) 67, 68 Summary of greenhouse gas offsets in V Exports by commodity (table) 20 2008/2009 (table) 46 Values IFC, 4, 77 Financial trend analysis to 30 June 2009 Taxes and dividends (graphs) 69 63 Vision IFC (table) Teus per container (graph) 28 11 Visitors Centre 5, 9, 36, 33, 36, 37, 45, 46, 48, Five-year revenue (graph) Teus per quayline metre (graph) 27 52, 53, 85, 86 11 Five-year trade performance (graph) Top regions – export (table) 20 W Fuel composition by vessel type Top regions – import (table) 20 Waste 37, 47, 48, 53, 78 and operating mode (graph) 50 Total assets (graph) 70 Water use 47, 48, 53 Grain trade (graph) 21 Total container trade (graph) 19 Waterside Logistics Forum 29 Heavy transit corridor (diagram) 24 Total trade (graph) 19 What we do 4 Imports by commodity (table) 20 Waste composition (graph) 47 Where we are 4 Interest-bearing liabilities (graph) 70 Women in management (table) 34 Who we are 4 Key environmental performance Women in the workforce (table) 34 XYZ indicators and targets (table) 53 Key social performance indicators Workplace profile (table) 34 and targets (table) 39 Yard utilisation (graph) 28 Lost Time Injury Frequency Rate (graph) 32

FC Front cover IFC Inside front cover IBC Inside back cover

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 81 GLOSSARY

AA1000: The AA1000 Assurance Standard Cutter suction dredger: A cutter suction dredger Green Star: The Green Building Council of is a leading international standard used to is a stationary dredger that uses a cutter head to Australia launched the Green Star environmental provide assurance on publicly available loosen the material to be dredged. The material rating system for buildings in 2003. Green Star sustainability information. is then pumped through a pipeline, ashore or rating tools help the property industry to reduce onto barges. the environmental impact of buildings, improve Australian Quarantine and Inspection Services occupant health and productivity, and achieve (AQIS): AQIS plays an important role at the port, Department of Environment and Resource real cost savings, while showcasing innovation in making sure that arriving ships, and the imported Management (DERM): The Department of sustainable building practices. goods that they are carrying, don’t bring exotic Environment and Resource Management is a pests and diseases into Australia. department of the Queensland Government Integrated Management System (IMS): Our that conserves and manages our natural IMS is a management tool that measures our AS4360: This is the Australian Standard for environment for the benefit of all Queenslanders. performance in controlling loss. The system Risk Management. It aims to deliver long-term sustainability incorporates workplace health and safety, our AS4801: This is the Australian Standard for the state’s natural environment. Its key internal processes, and the management of for Occupational Health and Safety areas of responsibility include water, climate our environment. The IMS is audited under the Management Systems. change, managing land and vegetation, and International Safety Organisation standards environmental services. Berth: A berth is a place alongside a wharf ISO 9001:2000 and ISO 14001, as well as the Australian Standard AS 4801. where a ship loads or discharges cargo. Equal Employment Opportunity (EEO): It is the policy of PBC to promote Equal Employment Brisbane Multimodal Terminal (BMT): PBC Incident: An incident is an unplanned event, Opportunity for all Aboriginal and Torres Strait operates the BMT, which is the rail interface with which may lead, or has led to, injury to Islander people, people from Non-English the container terminals. The BMT handles the rail persons, or damage to property, equipment speaking backgrounds, people with disabilities, transport of imported and exported containers or the environment. women, and older workers (45 years and above). through the port. ISO 14001: This is the international standard for Environmental Management System (EMS): Break-bulk cargo: Break-bulk cargo refers to environmental management systems. The EMS is part of our Integrated Management a variety of cargoes that are not transported in ISO 9001: This is the international standard for System. It addresses environmental risks and a container, or do not fit into a container, e.g. quality management systems. prioritises the actions necessary to achieve yachts, large machinery parts, timber, steel. best-practice environmental management. Land Use Plan: PBC’s Land Use Plan identifies The Brisbane: The Brisbane is PBC’s trailing appropriate land uses in various precincts Fisherman Islands: Fisherman Islands is suction hopper dredger, commissioned in 2001. and defines the economically, environmentally the locality name for the Port of Brisbane’s The dredger is equipped with state-of-the art and socially acceptable outcomes for future main operational complex at the mouth of the automation control and navigational systems. development on strategic port land. Brisbane River. Environmentally, the vessel features a low-turbidity Lowest Astronomical Tide (LAT): LAT is hopper-loading system, and under-keel Future Port Expansion (FPE): The FPE is a the lowest tide level that can be predicted discharge of overflow waters through an 230ha expansion area at the Port of Brisbane, to occur under average meteorological anti-turbidity valve. at the mouth of the Brisbane River, which is conditions, and under any combination of progressively being reclaimed as the port Brisbane City Council (BCC): The Brisbane astronomical conditions. continues to expand. City Council is Australia’s largest local Lost Time Injuries (LTIs): Instances in which government authority, and is responsible for Freight forwarder: A freight forwarder is a permanent staff suffered a physical injury as a council issues in our local community. We liaise person, or company, that arranges the carriage result of a safety incident, which resulted in those with Council on a number of issues, including of goods and the associated formalities, on staff members taking time off work. planning, environmental management, and the behalf of a shipper. The duties of a freight Brisbane River. forwarder include booking space on a ship, Lost Time Injury Frequency Rate (LTIFR): providing all the necessary documentation, LTIFR is calculated by multiplying the number of Bulk carrier: A bulk carrier is a single-deck ship and arranging Customs clearance. lost time injuries by one million, divided by the designed to carry homogeneous unpacked dry number of hours worked. cargoes, such as grain, coal or sugar. Gateway Upgrade Project: The $1.88 billion Gateway Upgrade Project is being delivered Micrometre or micron ( m): A micrometre Carbon dioxide equivalent (CO ): Different μ 2-e is a unit of measure for length equal to 0.00l mm, greenhouse gases have different levels of impact by the Queensland Government. It involves or about 0.000039 inch. Its symbol is m. on global warming. Emissions of greenhouse the construction of a second Gateway Bridge, μ The micrometre is commonly employed gases are often measured in CO equivalents. and upgrades and additions to the major roads 2 to measure the thickness or diameter of A tonne of each individual greenhouse gas is leading to and from the bridges. microscopic objects. adjusted to be expressed in terms of how many Global Reporting Initiative (GRI): The GRI tonnes of CO2 would be needed to produce the is an international framework for leading Maritime Safety Queensland (MSQ): MSQ is a same global warming impact over 100 years. practice and knowledge in sustainability government agency attached to the Department of Transport and Main Roads. It is responsible Chain of Responsibility (CoR): The CoR means reporting and transparency. The G3 Guidelines for improving maritime safety for shipping and that anybody (not just the driver) who has control are the framework within which this report has small craft; minimising vessel-sourced waste in a transport operation can be held responsible been prepared. and responding to marine pollution; providing for breaches of road laws, and may be made Greenhouse gases: Greenhouse gases maritime services, such as port pilots and aids legally liable. can be any type of gas that contributes to to navigation; and encouraging and supporting the greenhouse effect, especially greenhouse Consolidation: Consolidation refers to the innovation in the maritime industry. process of squeezing out water in the soft clays gases specified under the Kyoto Protocol Quayline: Quayline refers to a length of land and dredged muds (usually by surcharging), to e.g. carbon dioxide. lying alongside or projecting into water, for strengthen the reclaimed land area, to bring it GreenPower: GreenPower is a government loading and unloading ships. Wharves are to a standard appropriate for development. It is accreditation program for renewable energy. then built along the quayline, providing the usually expressed as a percentage complete. It is a joint initiative of ACT, NSW, SA, QLD, physical infrastructure for loading and VIC and WA government agencies to Customs broker: Customs brokers are licensed unloading the ships. by the Australian Customs Service to provide guarantee that the renewable electricity you professional assistance and advice, on customs, buy from energy suppliers meets stringent quarantine and import and export matters. environmental standards.

82 | Port of Brisbane Corporation Limited Annual Report 2008/2009 RY

GLOSSARY A

Queensland Wader Study Group (QWSG): Financial definitions Abbreviations The QWSG is a voluntary specialist group within Capital expenditure: refers to payments made, AAT Australian Amalgamated Terminals Birds Queensland. It undertakes research on or to be made, for the acquisition of a long-term OSS AQIS Australian Quarantine and both migratory and resident waders (shorebirds) asset, such as land or infrastructure, as well Inspection Service in Queensland, and works for their conservation. as the allocation of borrowing costs for Ramsar: The Ramsar Convention or ‘Convention capital projects. BACH Brisbane Airport Corporation Holdings Ltd G L on Wetlands’ aims to promote and protect Depreciation: is the systematic allocation of wetlands throughout the world. Australia became the depreciable amount of an asset over its BCC Brisbane City Council a signatory in 1971, and now has more than useful life. 60 Ramsar sites, covering an area greater than BMT Brisbane Multimodal Terminal EBIT (Earnings before interest and tax): the size of Tasmania. BPC Bundaberg Port Corporation includes operating and non-operating profit Reclamation: Land reclamation is the process of before the deduction of interest and income CCC Community Consultative Committee creating new land where there was once water. taxes (not including depreciation expenses). It can also refer to the restoration of existing land DERM Department of Environment and to a more usable state. Expenses: includes all costs incurred during Resource Management the course of business. Statement of Corporate Intent (SCI): This is a DTMR Department of Transport and 12-month business plan that we submit to our Finance costs: are borrowing costs, such Main Roads shareholding Ministers. The plan sets short-term as interest. EBIT Earnings before interest and tax goals and is produced in association with the Impairment: is the amount by which the five-year Corporate Plan, which sets long-term EBITDA Earnings before interest and tax, carrying amount of an asset exceeds its depreciation and amortisation goals and objectives. recoverable amount. EEO Equal Employment Opportunity Stevedore: A stevedore is a person or company Interest-bearing liability: refers to the financing employed to load and unload cargo ships. of loans. EVM Economic Value Management Super B-double: A Super B-double is a type NPAT (Net profit after tax): the total of a FI Fisherman Islands of truck capable of carrying two forty-foot company’s profits after taxes are deducted. containers. FPE Future Port Expansion Profitability: is a measure of the financial GOC Government Owned Corporation Surcharging: Surcharging involves placing a success of a business. temporary load of material (like sand) over an GPC Gladstone Ports Corporation area of reclaimed land, to squeeze water out of Revenue: represents what a company earns, GRI Global Reporting Initiative the soft clays and dredged muds. The amount of before expenses are deducted. load placed must be equal to, or greater than, the Return on assets (ROA): is an indicator of GST Goods and services tax service loading to which the developed facility profitability, calculated by dividing EBIT by HPH Hutchison Port Holdings Limited will be subjected. average total assets. KPIs Key Performance Indicators Tanker: A tanker is a ship, plane or truck built to Return on equity (ROE): is also an indicator carry liquids, such as oil, in bulk. of profitability, calculated by dividing NPAT by LAT Lowest Astronomical Tide Teu (twenty foot equivalent unit): A teu is a average total equity. LNG Liquefied Natural Gas measurement of containers. Containers are two Shareholder equity: represents total assets LTI Lost Time Injury sizes – twenty foot and forty foot. A teu is one minus the value of total liabilities. 20-foot container. LTIFR Lost Time Injury Frequency Rate Taxes and dividends: is the total of taxes Trailing suction hopper dredger (TSHD): paid to the government, and dividends paid to MSQ Maritime Safety Queensland A TSHD works by trailing a suction pipe along shareholders. NGERS National Greenhouse and Energy the seabed, sucking up material, and depositing Reporting System it into one or more hoppers in the vessel. The Total assets: is the total value of assets owned material is then either pumped out of the vessel, by a company. NPAT Net profit after tax or dumped through doors in the hull. PBC Port of Brisbane Corporation Transhipment: Transhipment is the transfer of QIC Queensland Investment Corporation goods from one ship to another. This transfer may be direct, or it may be necessary to ROA Return on Assets discharge the goods onto the wharf prior to ROE Return on Equity loading them onto the second ship or onto a vehicle, should the second ship be loading at a SCI Statement of Corporate Intent different berth. ULDA Urban Land Development Authority Truck turn time (TTT): This is a measure of the time taken for a truck to complete the receival or delivery of its cargo, from the time it enters to the time it exits the terminal. Vacuum consolidation: This is a reclamation technique that involves applying vacuum pressure to an area already installed with vertical drains. Wharf: A wharf is a structure built alongside the water, where ships berth for loading or discharging cargo. Wick drain: A wick drain is a vertical drain used in land reclamation.

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 83 13 49 15 17 12 19 1 14 16

2 48 18 3 4 5 37 46 43 39 38 47 45 6 35 7 40 8 44 42 36 41 34 11 10 9

1 Svitzer Australia 9 Port Gate Precinct 18 Brisbane Multimodal Terminal (BMT) 2 PB Towage 10 Truck Stop 19 DP World Container Terminal 3 PBC Operations Base 11 Public Boat Ramp 20 Patrick Container Terminal 4 Queensland Combined 12 Queensland Bulk Handling 21 Container Terminal Site for Emergency Services Academy 11 and 12 Wharves 13 General Purpose Wharf and Terminal 5 Hawkins/Moreton Island Cruises 22 Future Port Expansion Area 14 Queensland Commodity Exports 6 Baulderstone 23 Patrick CargoLink 15 GrainCorp 7 Dredeco 24 Reclamation Site Office 16 Patrick Autocare PDI 8 QPS Water Police 25 Reclamation Area 17 AAT Terminal

84 | Port of Brisbane Corporation Limited Annual Report 2008/2009 E MAP BAN S 21 20 I R

23 29 24 F B

28 27 30 22 33 25 O ORT

32 31 P

26

26 Shorebird Roost 35 Australian Terminal Services 43 Patrick Autocare Storage 27 Patrick Port Services Container Park 36 Chalmers Freight Station 44 Motor Vehicle Precinct 28 Patrick Truck Marshalling Area 37 Chalmers Industries Container Park 45 Prixcar PDI 29 Patrick Port Services 38 ACFS 46 Prixcar Storage Area 30 P&O Trans Australia Container Park 39 Australian Customs Service Container 47 Visitors Centre Examination Facility 31 IPS Logistics 48 Wharf Overflow Area 40 Port Central One 32 P&O Trans Australia 49 Sunstate Cement 41 PBC Port Office 33 Patrick Empty Container Storage Area 42 Port Central Precinct 34 P&O Trans Australia

Port of Brisbane Corporation Limited Annual Report 2008/2009 | 85 T US

Port Office

AC 1 Sandpiper Avenue Port of Brisbane QLD 4178 T Tel +61 7 3258 4857

N Fax +61 7 3258 4703 Email [email protected] O Brisbane Multimodal Terminal C Port Drive Port of Brisbane QLD 4178 Tel +61 7 3258 4857 Fax +61 7 3258 4706 Email [email protected] Operations Base 18 Howard Smith Drive Port of Brisbane QLD 4178 Tel +61 7 3258 4609 Fax +61 7 3258 4623 Email [email protected] Visitors Centre 1 Whimbrel Street Port of Brisbane QLD 4178 Tel +61 7 3258 4677 Fax +61 7 3895 2566 Email [email protected] Northshore/Chairman’s Office Level 28 12 Creek Street Brisbane QLD 4000 Tel +61 7 3258 4643 Fax +61 7 3258 4705 Email [email protected] Northshore Riverside Café MacArthur Avenue Hamilton QLD 4007 Tel +61 7 3868 3864 Fax +61 7 3868 4192 Email [email protected] Jetty Kiosk End of Wyvernleigh Close Manly QLD 4179 Tel +61 7 3396 3504 Fax +61 7 3895 2566 Port Central Café Port Central One Port of Brisbane QLD 4178 Tel +61 7 3895 1328 Fax +61 7 3895 2566 Our mailing address Locked Bag 1818 Port of Brisbane QLD 4178

www.portbris.com.au

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