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2050 Port Development Strategy Delivery Program

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2050 Port Development Strategy Delivery Program Port of Melbourne Operations Pty Ltd 2050 Port Development Strategy Delivery Program 13 APRIL 2021 2050 PORT DEVELOPMENT STRATEGY DELIVERY PROGRAM Disclaimer This document has been prepared by Port of Melbourne Operations Pty Ltd (PoM) on behalf of the Port of Melbourne Group (PoM Group) for planning purposes only. This is a proprietary PoM Group document and is not intended to be relied upon by any person or organisation other than the PoM Group, its employees and its authorised contractors and representatives. Any potential infrastructure development identified in this document will be subject to financial viability, technical feasibility and environmental and planning considerations that will vary over time. The PoM Group will prepare a Port Development Strategy at five‐yearly intervals (or, at its absolute discretion, more frequently). The PoM Group accepts no liability for any reliance by any third party on the information contained within this document. The PoM Group makes no expressed or implied guarantees, representations or warranties as to whether the requirements of this document will be fulfilled, and no reliance may be placed by any person on the PoM Group meeting the strategic objectives or otherwise taking any action outlined in this document. Copyright This document is subject to PoM copyright under Australian and international laws. All rights are reserved. No part of this document may be published, reproduced, adapted, communicated or transmitted in any form, in any retrieval system or media, by any means, in any jurisdiction, without the prior written permission of PoM. Relevant Stakeholder Interests For each of the Major Project descriptions outlined in Section 4, PoM has identified the likely level of interests of key stakeholders. This is based on feedback received through the engagement in the preparation of the 2050 PDS. This indicative stakeholder interest is not intended to be exclusive and PoM would encourage any feedback on projects of interest. 2050 PORT DEVELOPMENT STRATEGY Contents DELIVERY PROGRAM Page 1. Introduction 3 1.1 Background 3 1.2 The Port of Melbourne 3 2. 2050 PDS Delivery Program 4 2.1 Overview 4 2.2 Implementation Considerations 4 2.3 Projects and schedule 4 3. 2050 PDS Projects to be delivered between 2020 – 2035 5 3.1 Key projects 5 3.2 Project Sequencing 6 4. Project Overview 7 4.1 Upgrade Swanson Dock East & West berths 7 4.2 Port Rail Transformation Project 8 4.3 Expand Webb Dock East 9 4.4 Relocation of Tasmanian terminals 10 4.5 Develop Webb Dock North 11 4.6 Webb Dock Freight Link 12 4.7 Northward integration with Dynon 13 4.8 Develop new liquid bulk berth (if required) 14 4.9 Develop Yarraville precinct 15 Page 3| Port of Melbourne Operations Pty Ltd | 13 April, 2021 2050 PORT DEVELOPMENT STRATEGY 1 Introduction DELIVERY PROGRAM 1.1 Background The Port of Melbourne Operations Pty Ltd (PoM) is committed to the continued growth and development of the Port of Melbourne (the Port) to support the economic growth and prosperity of Victoria. In doing so, PoM will seek to optimise port capacity through a continuous focus on port and supply chain productivity and efficiency improvement through the staged delivery of new port capacity to support Victoria’s growth in trade demand. PoM released the 2050 Port Development Strategy (2050 PDS) and the Our Plan for Rail in 2020 which sought to outline the key challenges and opportunities for the Port over the next 30‐years, and to outline PoM’s key development objectives. Supplementary to the 2050 PDS and Our Plan for Rail, the 2050 Port Development Strategy Delivery Program, seeks to provide further information including indicative timing relating to the Major Projects outlined within these planning documents. 1.2 The Port of Melbourne The Port is a major business gateway for Victoria and south‐eastern Australia. It is Australia’s largest container, automotive and general cargo Port and operates 24 hours a day, 365 days a year. The Port handles Victorian imports and exports, a number of Tasmanian trades, and cargoes moved to and from South Australia and southern New South Wales. The Port’s location in central Melbourne supports an efficient and effective transport and logistics industry and thousands of cargo owners across Australia’s south‐eastern seaboard. The Port’s activity contributes significantly to Victoria’s economy and growth. Freight movements are essential to business and the economy. Ensuring that commercial ships have easy access to the Port, that cargo is efficiently handled at the Port and that freight is easily transported on land helps to reduce the costs of doing business in Victoria. The building manufacturing, retail, food, agriculture and petroleum industries rely heavily on the Port and its transport connections –and as a result, our day‐to‐ day lives depend on the Port running well. Simply put, the better the Port works, the better Victoria works. As our population grows and interstate and international trade increases, the demand for access to Melbourne’s Port will continue to grow. Each day, the Port handles around 8,000 Twenty‐foot equivalent units (TEU) of containers carrying a range of consumer goods including dairy products, toys, furniture and household appliances. It also handles significant volumes of other goods such as building materials used to construct our homes and infrastructure as well as petroleum products which fuel industry and passenger and freight vehicles. Page 4| Port of Melbourne Operations Pty Ltd | 13 April, 2021 2050 PORT DEVELOPMENT STRATEGY 2 2050 PDS Delivery Program DELIVERY PROGRAM 2.1 Overview The PDS Delivery Program outlines the indicative timing and sequencing of each of the Major Projects outlined in the 2050 PDS over the next 15 years. How we have engaged These projects have been determined on the basis of the initial planning activities conducted through the development of the 2050 PDS and Our Plan for Rail and have been further refined based on feedback received through consultation and engagement with industry, community and government stakeholders. Our approach to engagement is outlined below. 2.2 Implementation Considerations The scope, sequencing and delivery of projects will need to balance a broad range of needs to deliver the port’s capacity and competition objectives whilst optimising the overall outcome for the Port and its stakeholders. PoM is continuously reviewing the planning assumptions underpinning future investment decisions in collaboration with port stakeholders. As planning progresses, each project will be further defined and assessed in response to the changing needs of the Port. It should be noted that this Delivery Program is indicative and does not commit PoM to the scope or timing of investment. Each project outlined in the 2050 PDS and subsequently considered in this Delivery Program remains subject to investment and relevant development approval hurdles prior to delivery. Inclusion within the PDS Delivery Program does not represent an investment decision by PoM, and the scope and overall delivery of the projects may be subject to change. 2.3 Projects and Schedule During the period through to 2035, PoM has identified nine projects which are aimed at expanding capacity, improving operational performance and managing the asset portfolio of the Port. An overview of the projects is provided in Section 3.1 with more detailed information on each project provided in Section 4. The timing and high‐level dependencies between the projects are outlined in section 3.2. Of the nine major projects, three projects (2, 6 and 7) relate to the key projects outlined within the RAS. Page 5| Port of Melbourne Operations Pty Ltd | 13 April, 2021 2050 PORT DEVELOPMENT STRATEGY 3 2050 PDS Projects to be delivered between 2020 – 2035 DELIVERY PROGRAM 3.1 Key projects The 2050 PDS has been prepared to guide the port’s high level plans and approach for developing capacity and efficiency over the next 30 years. The 2050 PDS lays out how the port will handle a doubling of containers to circa 6 million TEU each year by 2035 whilst also accommodating growth in all other trades including the important Bass Strait services. PoM’s planning framework is based on a trade hierarchy optimised around international and mainland containers as the key driver of trade Key projects growth. Container handling is the most demanding trade type in terms of land and infrastructure configuration. The key projects outlined in the 2050 PDS include: In planning port projects, PoM is also mindful of the long lead times for major infrastructure 1. Upgrade Swanson Dock East & West berths works and seeks to invest in additional capacity 2. Port Rail Transformation Project ahead of demand to ensure trade growth is not constrained and to optimise operational 3. Extending & upgrading Webb Dock East Container Berths efficiency. 4. Relocation of Tasmanian terminals Our planning framework considers a 15‐20% 5. Develop Webb Dock North capacity buffer for international containers, which based on current trade volumes equates 6. Webb Dock Freight Link to approximately 465,000 to 620,000 TEU. 7. Northward integration with Dynon This is used as a trigger to guide investment 8. Develop new liquid bulk berth (if required) timing on the capacity component alone. Other drivers will influence investment decision and 9. Develop Yarraville precinct timing. Page 6| Port of Melbourne Operations Pty Ltd | 13 April, 2021 2050 PORT DEVELOPMENT STRATEGY 3 2050 PDS Projects to be delivered between 2020 – 2035 DELIVERY PROGRAM 3.2 Project Sequencing Indicative timing and high‐ level dependencies between the projects are set out here. The Swanson Dock East and West berth upgrades and Port Rail Transformation Project are in progress with many of the remaining projects in various stages of the planning phase. Page 7| Port of Melbourne Operations Pty Ltd | 13 April, 2021 2050 PORT DEVELOPMENT STRATEGY 4ProjectOverview DELIVERY PROGRAM 4.1 Upgrading Swanson Dock East and West Berths PROJECT OBJECTIVES .
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