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Ports Futures port futures New Priorities and Directions for Victoria’s Ports System minister’s message Victoria’s commercial trading ports are key drivers of our Although the current policy and planning settings have economy and play a defining role in shaping the State and served Victoria’s port system well, it is now necessary to make national freight networks. adjustments to respond to new pressures and challenges as our port task continues to grow. As well as being the major gateways to our overseas markets, they are also key freight hubs connected by road, rail and Port Futures advances and reviews a number of aspects of pipeline networks to freight origins and destinations locally, the existing settings, including a revised approach to the regionally and Australia wide. sequence of container terminal development in the Port of Melbourne and important improvements to port governance For these reasons, it is important that the ports be planned arrangements, particularly the integration of the governance and operated to complement each other in the context of the and management of the ports of Melbourne and Hastings. broader economy and freight and logistics networks within which they have evolved and to which they contribute. Significantly, Port Futures is accompanied by the release of long term port land use strategies for each of the commercial Only by effectively coordinating the port system, recognising trading ports. These strategies set out the projected trade the unique roles and strengths of the individual ports – tasks for each of the ports and the land use and infrastructure Melbourne, Hastings, Geelong, Portland and the 14 local ports development and management programs proposed to respond – can the benefits of the ports to the Victorian economy and to these specific tasks. community be maximised. I would like to acknowledge the significant effort and Port Futures develops this integrated system thinking in the cooperation of port managers, both public and private, context of the recently released overarching transport strategy, and their respective communities in developing these plans The Victorian Transport Plan, and the first ever comprehensive and the significant contribution they collectively make to the Victorian Freight Network Strategy, Freight Futures. overall vision for Victoria’s port system. Port Futures is consistent with both of these flagship Victoria, through Port Futures, now has the opportunity to documents and represents a key package of work under enhance its position as the nation’s pre-eminent freight the suite of directions announced in Freight Futures. State. Our ports are critical elements of the national freight The critical role our ports play in the economy and the infrastructure and we can maximise their contribution to freight network has been strongly acknowledged from the national economic prosperity by delivering an efficient, outset by this Government, most notably through a wide integrated and sustainable ports system that fits seamlessly ranging package of reforms implemented in response to into national transport and freight networks. The Next Wave of Port Reforms in Victoria, released in 2002, The approach to port planning and development in and then through the Victorian Ports Strategic Framework Port Futures, with its emphasis on coordination of effort, (VPSF), released in 2004. judicious use of competition and integrated land use planning, Over this period, the Government has put significant aligns with the Commonwealth Government’s new agenda investment into the development of Victoria’s commercial port for a ‘National Ports Strategy’, highlighting priorities for system, including essential transport connections, in line with investment in these assets of national significance. directions set out in these policy and strategic frameworks. I now look forward to continuing this important work as we Critical port infrastructure is being delivered, including the roll out the actions of Port Futures in partnership with port Channel Deepening Project in Port Phillip Bay (nearing managers, port users, local and Commonwealth governments. completion) and improved land side connectivity through the completion of the Dynon Port Rail Link, the Cliff Street Overpass project in Portland, the Geelong Rail Access Improvement Program, and many other projects. Tim Pallas Minister for Roads and Ports August 2009 contents MINISTER’S MESSAGE Essential port services 42 – Current policy settings 42 EXECUTIVE SUMMARY 1 – Challenges and opportunities 43 – Priorities and actions 44 PART A – BACKGROUND 4 • Towage 44 The special role of the ports 4 • Slipping facilities 45 – Ports as drivers of the economy 4 Port Governance 46 – The ports system 7 – Current policy settings 46 – Victorian port policy since 2000 9 – Challenges and opportunities 49 – Key achievements to date 11 • Integration of Melbourne and Hastings 49 The Need for Port Futures 12 • International supply chain – The need for regular review 12 ‘beyond the port gate’ 51 – Essential Services Commission • Governance arrangements for the Review of Port Planning 13 Port of Geelong 51 – The Victorian Transport Plan • Local ports 51 and Freight Futures 14 • Transport Integration Bill 52 – A new national agenda for ports 14 – Priorities and actions 53 • Integration of Melbourne and Hastings 53 Key drivers, goals and objectives 16 • International supply chain – Key drivers 16 ‘beyond the port gate’ 55 – Goals and objectives 17 • Governance arrangements for the Port of Geelong 55 PART B – PRIORITIES AND ACTIONS 20 • Local ports 55 • Transport Integration Bill 55 Port roles, competition, capacity and sequence of development 20 Port Planning and Protection 58 – Current policy settings 20 – Current policy settings 58 – Challenges and opportunities 21 – Challenges and opportunities 59 – Priorities and actions 22 – Priorities and actions 62 • Port development plans 62 • Roles 22 • • Competition 25 Recognition in the planning system 62 • Port of Melbourne buffer planning 62 • Capacity 25 • • Sequence of development 26 Regional Ports Planning Framework 65 Port access, efficiency, productivity Port Safety, Security and and investment 28 Environmental Management 68 – Current policy settings 28 – Current policy settings 68 – Challenges and opportunities 30 – Challenges and opportunities 69 – Priorities and actions 72 • Improving channel access 35 • Safety Environment and Management 72 • Improving landside access and efficiency 37 • Pilotage 72 • Improving productivity 42 • Marine emergency response 72 • Facilitating investment 42 • Carbon Pollution Reduction Scheme 72 – Priorities and actions 35 • Sea level rise 72 • Improving channel access 35 • Green ports 72 • Improving landside access and efficiency 37 • Improving productivity 40 CONCLUSION: DELIVERING PORT FUTURES 74 • Facilitating investment 40 GLOSSARY OF TERMS 76 executive summary Port Futures updates policy and strategy settings Accelerate port development at Melbourne contained in the Victorian Ports Strategic Framework and Hastings (VPSF), released in 2004, and governance arrangements Port Futures proposes to meet strong projected medium established in the Port Services Act 1995 (PSA), to long term growth in freight volumes by accelerating as amended in 2002/2003. the development of an initial module of new stevedoring Over the past five years, these policy settings have capacity at Webb Dock and progressing the development provided sound strategic and governance foundations of the Port of Hastings. Specifically, the Government will: to enable all participants in the port system to plan their • Consider bringing forward an initial module of operations and investment strategies with confidence. terminal capacity at Webb Dock (up to one million Many of the actions identified in the VPSF have been TEUs) subject to a satisfactory business case and all completed, such as the port land use strategies or necessary Government approvals; substantially progressed, including the Channel Deepening Project. • Maintain the existing planning reservation for the Webb Dock Rail Link for future consideration; The goal of Port Futures is to introduce improved policy and strategy settings to ensure that the • Progress planning to increase capacity of the existing contribution of Victoria’s ports to state and national East and West Swanson Dock container terminals and economic prosperity and sustainability is maintained wharves, subject to a satisfactory business case and and maximised. all necessary Government approvals; and • Progress planning and environmental investigations Port Futures identifi es the following for the staged expansion of the Port of Hastings, key priorities and actions: subject to a satisfactory business case and all necessary Government approvals. Re-affirm port trade roles and development Under Port Futures, the four commercial trading ports will develop their existing core trade roles: • The Port of Melbourne, the largest container and general port in Australia, will continue to develop its specialised capacity to handle containerised cargo; • The ports of Portland, Geelong and Hastings will continue to focus on the bulk trades and break bulk cargoes related largely to steel and aluminium production; and • The role of the Port of Hastings to act as an overflow container port for the Port of Melbourne is also reaffirmed, with further assessment of timing of this development to be undertaken. Port Futures 1 Enhance port access, efficiency, productivity Secure the provision of essential port services
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