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Annual Report 2010-11 Annual Report 2010-11 Port of Melbourne Corporation Annual Report 2010-2011 Port of Melbourne Corporation MELBOURNE OFFICE Street Address Level 4 530 Collins Street | Melbourne Victoria 3000 | Australia Postal Address GPO Box 261 | Melbourne VIC 3001 | Australia Tel: +61 1300 857 662 | Fax: +61 3 9683 1570 Email: [email protected] | Website: www.portofmelbourne.com SOUTH AUSTRALIA REGIONAL NEW SOUTH WALES TasmaNIA AND SUNRAYSIA Carrington House PO Box 8804 PO Box 2141 61 Carrington Street Kooringal Howrah TAS 7018 Adelaide SA 5000 Wagga Wagga NSW 2650 Australia Australia Australia Tel: +61 8 8237 0503 Mob: +61 (0)428 024 161 Tel/Fax: +61 3 6245 1890 Fax: +61 8 8237 0562 Port of Melbourne Corporation Authorised by the Victorian Government. This publication is produced by Port of Melbourne Corporation, GPO Box 261, Melbourne, VIC 3001 Proudly designed and produced by abCreative productions. Tel: +61 3 9500 2266 www.abCreative.com Letter to the Ministers The Hon. Dr Denis Napthine MP Minister for Ports Level 16 121 Exhibition Street Melbourne Victoria 3000 The Hon. Kim Wells MP Treasurer 1 Treasury Place East Melbourne Victoria 3002 Dear Ministers, Port of Melbourne Corporation 2010-11 Annual Report I have much pleasure in submitting to you the Annual Report of the Port of Melbourne Corporation for the period 1 July 2010 to 30 June 2011, in accordance with the provisions of the Transport Integration Act 2010 (Vic) and the Financial Management Act 1994 (Vic). Yours sincerely, Bill Scales AO Chairman 26 August 2011 PORT OF MELBOURNE CORPORATION ANNUAL REPORT 2010-2011 1 2 PORT OF MELBOURNE CORPORATION ANNUAL REPORT 2010-2011 Table of contents Letter to the Ministers 1 Our vision 4 Our goals 4 Our values 5 From the Chairman 6 From the Chief Executive Officer 7 Highlights of 2010-11 8 The Port of Melbourne – an overview 10 Corporate governance 12 Board of Directors 13 Board Meetings 17 Board Committees 18 Executive Management Team 20 Our people 22 Organisational structure 24 Trade performance 26 Finance in brief 28 Financial summary 30 Our stakeholders - customers and community 31 Port operations 33 Port planning 36 Port development 37 Sustainability 38 Port pricing 39 Additional information 41 Transport Integration Act 2010 (Vic) 41 Significant legislative changes 43 National Competition Policy 44 Victorian Industry Participation Policy 44 Victorian Government Risk Management Framework 44 Consultancies 45 Privacy 46 Whistleblowers’ protection 46 Freedom of information 47 Assets 47 Building and maintenance compliance 47 Availability of additional information 47 Statement of Corporate Intent 49 Financial statements 68 Certification of financial report 124 Auditor-General’s Report 125 Compliance index 127 PORT OF MELBOURNE CORPORATION ANNUAL REPORT 2010-2011 3 Our vision The Port of Melbourne will be the core of Australia’s premier maritime trade and transport hub, creating economic prosperity while sustaining environmental and social wellbeing for the people of Victoria and Australia. Our goals The goals of Port of Melbourne Corporation (PoMC) are focused on achieving the corporate vision and are responsive to the organisation’s charter ensuring a balanced and sustainable approach to the development and management of the port. Our goals are: • efficient and high quality facilities and services • integration of the port with land transport systems • trade and trade-related business facilitation and expansion • sustainable financial performance • a shared port city vision for sustainable growth and prosperity 4 PORT OF MELBOURNE CORPORATION ANNUAL REPORT 2010-2011 Our values PoMC’s values are a shared understanding of what we stand for as an organisation. They describe the things we strive for – with our customers, the community and each other. Customer focus PoMC values its customers and the relationships that exist with them. We will strive to understand their businesses and expectations and work to achieve mutual benefits for our customers and PoMC. In our dealings Quality and service with our customers we will act Innovation fairly and equitably. excellence PoMC encourages the generation of new and innovative ideas PoMC will continually seek to and the creation of opportunities improve the quality of its services to improve our skills. We will through reviewing our performance be flexible and embrace new and amending our processes and practices, openly discussing practices. We will be accountable problems and developing for our commitments and deliver Valuing our people solutions. on our promises. Our people are our most valued resource. We will support their personal and professional development and maintain a safe and healthy work environment. At all times, we will operate on a basis of mutual respect, Openness, integrity trust and dignity. Teamwork and honesty PoMC is a team-oriented PoMC will operate in an open and organisation. We work as a team, honest environment, seeking the encouraging participation and input of others in decision making recognising the achievements and and sharing information. We will contributions of our colleagues. provide constructive feedback and Environment, safety We aim to fully utilise our collective respect individual differences and and social wellbeing skills, knowledge and experiences opinions. to achieve our goals. PoMC recognises the inherent environmental and social value of the port and will contribute to the social and economic wellbeing of our neighbours. By using best practice safety and environmental management systems, we will continually improve environmental and safety impacts to ensure the sustainable co-existence of the port and local communities. PORT OF MELBOURNE CORPORATION ANNUAL REPORT 2010-2011 5 From the Chairman Servicing a wide area extending across south-east Working in cooperation with the Department Australia, the Port of Melbourne works to support of Transport, PoMC also contributed to the the commercial and lifestyle ambitions of a diverse preparation of the car trade relocation feasibility range of stakeholders from regional producers study announced by the Government. to consumers, through its efficient, safe and sustainable operation as an integrated logistics hub. The Board recognises that Melbourne is a city based port and we are mindful of the need to balance To accommodate future trade needs and the consequences of forecast trade growth with foster economic growth, the Board’s strategic the amenity and liveability expectations of our deliberations over the past year have focused on neighbours. Working collaboratively with industry, the need for ongoing port development, including Government agencies, local councils and the additional container capacity and the port’s role in community, the Board is committed to achieving the wider logistics network. a port city vision for sustainable growth and prosperity in keeping with PoMC’s corporate goals As a facilitator of Victorian and the nation’s and Government policy. international shipping trade, PoMC consciously takes a long-term view of customer and community In November, the Port of Melbourne was honoured needs as it to plans to meet future freight demand. to be given the opportunity to host a visit to the port by the United States Secretary of State To enable the Port of Melbourne to meet future Hillary Clinton and a number of other United freight demand, PoMC recently provided the States dignitaries. During this visit, the Secretary Government with a major study that outlined in of State reinforced the important role of ports in detail the need for increased container capacity in underpinning national prosperity. the Port of Melbourne. PoMC has also provided to Government a robust business case that outlines I would like to thank my Board colleagues for how this increased container capacity can be their outstanding work, valued contributions and efficiently and effectively achieved. Government support throughout the year. consideration of this proposal is expected in early 2011-12. On behalf of the Board, I would also like to thank Chief Executive Officer, Stephen Bradford, for his leadership of Port of Melbourne Corporation, together with PoMC’s management and staff for their commitment, dedication and professionalism. Bill Scales AO Chairman 6 PORT OF MELBOURNE CORPORATION ANNUAL REPORT 2010-2011 From the Chief Executive Officer A buoyant trading environment helped PoMC In addition, PoMC delivered a dividend of $13.4 reach a new milestone by handling a record 2.39 million to the Victorian Government and invested million twenty-foot equivalent units (TEU) which a further $26.0 million in capital projects to ensure included five separate months where volumes the Port of Melbourne remains an efficient maritime exceeded 200,000 TEU. logistics hub, now and for future trade growth. Total trade also reached record levels, increasing During the year, PoMC progressed and completed a 5.8% to 79.7 million revenue tonnes. With the wide range of port development projects including exception of new motor vehicles which were the remediation of 221 Whitehall Street, Yarraville, impacted by the tsunami in Japan, all cargo types maintenance dredging, rehabilitation of 33 South recorded strong increases, particularly dry bulk and Wharf and ongoing upgrades to Station Pier ahead containerised grain which benefitted from higher of the upcoming record cruise season with 56 ship than average rainfall. Exports remained strong visits scheduled. throughout the year despite the relatively high value of the Australian
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