Annual Report

Port Authority of New South Wales 2019/20 Overview This Annual Report contains audited Financial Statements. If you experience difficulty accessing this content please contact Lawrence Ho, Chief Financial Officer.

T 02 9296 4999 E [email protected]

Port Authority of New South Wales (Port Authority) is a state-owned corporation (SOC) ABN 50 825 884 846

T 02 9296 4999 F 02 9296 4742 E [email protected] W portauthoritynsw.com.au

Street address: Level 4, 20 Windmill Street, Walsh Bay, NSW 2000 Postal address: PO Box 25, Millers Point, NSW 2000 Business hours: 9 am–5 pm, Monday to Friday Service hours: 24 hours a day, seven days a week

Front cover: Port Authority marine pilot prepares to board a ship at sea. Table of contents

Letter of submission 5 12 Sydney Harbour and Port Botany 48 12.1 Port Botany 48 1 Overview 6 12.2 Sydney Harbour 48 2 Highlights 7 12.3 Trade vessel visits 49 2.1 Our people 7 12.4 Marine Operations 49 2.2 Total vessel visits (cruise and trade) 8 12.5 Emergency response 51 2.3 Cruise in NSW 8 12.6 Introduction of towage licences 52 2.4 The Bays West Precinct 11 12.7 Cruise in Sydney Harbour 53 2.5 Capital projects 12 12.8 The Bays West Precinct 57 2.6 The year ahead – capital projects 13 12.9 Capital projects 61 12.10 The year ahead 62 3 Summary review of operations 14 12.11 Community engagement 3.1 Financial performance 14 and sponsorship 64 3.2 Marine Operations 14 3.3 Port security 16 13 Newcastle Harbour 69 3.4 Hydrographic surveys 17 13.1 Overview 69 13.2 Marine Operations 70 4 Port highlights 19 13.3 Summary review of operations 70 5 Chair’s report 23 13.4 Community engagement and sponsorship 72 6 Chief Executive Officer’s report 26 13.5 The year ahead 73 7 Board of Directors 28 14 Port Kembla 75 8 Executive team 32 14.1 Overview 75 9 Vision, objectives and values 35 14.2 Marine Operations 76 Our vision 35 14.3 Summary review of operations 76 Our purpose 35 14.4 Community engagement Our objectives 35 and sponsorship 78 Our values 35 14.5 The year ahead 78 New Strategic Plan 36 15 Port of Eden 79 10 Our people 37 15.1 Overview 79 10.1 Work, Health and Safety 37 15.2 Summary review of operations 80 10.2 Leadership and coaching 38 15.3 NSW bushfires 81 10.3 Improving diversity and inclusion 38 15.4 Capital projects 81 10.4 Suite of new policies 41 15.5 Community engagement 10.5 The year ahead 41 and sponsorship 83 15.6 The year ahead 83 11 Evolution of the COVID-19 pandemic response 42 16 Port of Yamba 84 11.1 Developing a COVID-19 specific 16.1 Overview 84 Business Continuity Plan 42 16.2 Pilotage and navigation services 84 11.2 Impacts on the cruise industry 45 16.3 Summary review of operations 85 11.3 Financial impacts of COVID-19 46 16.4 Port development 85 11.4 Trade impacts of COVID-19 47

Table of contents • 3 4 Port Authority of New South Wales Annual Report 2019/20 Financial statements 20 Financial 19 18 Heritage 17 have beenusedto illustrate thisreport. Port Authority ofNew SouthWales thanksallemployees whoseimagesofourworking portsand waterways 21 21.8 21.7 21.6 21.5 21.4 21.3 21.2 21.1 Statement oflandholdings Notes to thefinancial statements Statement ofcashflows Statement ofchangesinequity Statement offinancialposition Statement ofcomprehensive income Independent auditor’s report Director’s declaration 19.2 19.1 18.3 18.1 17.8 17.7 17.6 17.5 17.4 17.3 17.2 17.1 Communications highlights Sustainability andenvironment Statutory disclosures raised by the Auditor General Response to significantissues period provisions 172 Exemptions for the reporting Statement of Corporate Intent Performance relative to the of operational objectives affecting achievement Economic or otherfactors subordinate legislation Changes inActs and Relevant legislation Port Safety Operating License Guarantee of service: Charter, aimsand objectives The year ahead Overview The year ahead Overview The year ahead Environmental penalties Indigenous sponsorship projects Sustainability inconstruction Vehicle and marinefleet Penrhyn Estuary Management of portimpacts Introduction 170 104 106 105 103 102 170 170 169 173 172 172 96 86 92 90 90 90 90 94 98 86 171 171 89 89 92 87 97 91 91 91 21.36 21.35 21.34 21.33 21.32 Publications 21.31 21.30 21.29 21.28 21.27 21.26 21.25 21.24 21.23 21.22 21.21 of interest Conflict 21.20 21.19 21.18 21.17 21.16 21.15 21.14 21.13 21.12 21.11 21.10 21.9 Public interestPublic disclosures Executive positions Land disposal Annual report cost consumer response Community engagement/ community organisations non-government Funds granted to employees 187 Authority of New South Wales Overseas travel by Port Work HealthandSafety Equity, diversity andinclusion Board performance appointment and education Director remuneration, meetings 2019/20 Attendance at committee 2019/20 183 Attendance at Board meetings Board meetingsandtheirconduct Other board memberships independent professional advice Access to information and Board independence Chief Executive Officer Board composition Insurance activities Risk management Code ofconduct Board committees Role oftheBoard Corporate governance (Public Access) Act 2009 Government Information 180 180 184 184 184 186 189 188 188 188 183 182 182 182 182 179 187 187 187 177 177 177 174 181 181 181 Letter of submission

30 September 2020

The Hon. Dominic Perrottet MP The Hon. Damien Tudehope MLC Treasurer Minister for Finance and Small Business 52 Martin Place 52 Martin Place SYDNEY NSW 2000 SYDNEY NSW 2000

Dear Mr Perrottet and Mr Tudehope,

REPORT ON OPERATIONS FOR THE YEAR ENDING 30 JUNE 2020

We are pleased to submit Port Authority of New South Wales’ annual report detailing performance, operations and financial results for the year ending 30 June 2020. The report has been prepared in accordance with the Annual Reports (Statutory Bodies) Act 1984, and the applicable provisions of the Public Finance and Audit Act 1983 and the State Owned Corporations Act 1989, and is submitted for presentation to Parliament.

Yours sincerely,

Mr Robert Dunn Mr Philip Holliday Chair Chief Executive Officer and Director

Letter of submission • 5 6 Port Authority of New South Wales Annual Report 2019/20 • • • • • • • business activities,include: of Port Authority, andassociated The primaryroles andresponsibilities needs into fullconsideration. aims to addvalue andtake theirbusiness a professional service that consistently It provides itscustomers with environments. for everyone, andto protect port ports safe for shippingandsecure Port Authority operates to keep its (See Section 21.2for details.) and MaritimeAdministration Act. issued undersection12(2)ofthePorts Port Safety Operating Licence (PSOL) Administration Act 1995 (NSW) andthe 1989 (NSW), thePorts andMaritime of theState OwnedCorporations Act functions are derived from theprovisions Port Authority’s statutory objectives and Port Kembla andtheportsofNewcastle, Eden andYamba. safety needsofcommercial shippinginSydney Harbour, Port Botany, corporation that managesthenavigation, securityandoperational Port Authority ofNew SouthWales (Port Authority) isastate owned 1 and Safety Regulation 2011 (NSW) and preserved by theWork Health Dangerous Goods Regulation 1999, as contained inPart 11oftherepealed dangerous goodsadministration , in the marine environment including theclean-upofspills emergency response safety ofportoperations port security a shipinandoutofport) pilotage (marinepilotsafely navigating channels andberthingboxes survey ofharbour/port approaches, within eachport safe navigation ofshippingmovements Overview the Eden CruiseWharf inTwofold Bay. Cruise Terminal at Rozelle andmanages at Circular Quay andat theWhite Bay at the Overseas Passenger Terminal Sydney Harbourcruisefacilities Port Authority owns andmanages to berthsat GlebeIslandandWhite Bay. short-term licences inthearea adjacent provides landonlong-term leasesand in Sydney Harbour. Port Authority also berths at GlebeIslandandWhite Bay NSW assets includingcommon user Port Authority owns andmanageskey south of Port Kembla. Port Stephens inthenorth,to Gerroa, waters stretching from FingalHead, to maritime incidentsincoastal is also theleadagency for responses within portareas’. Port Authority movement, entryandexit ofvessels ‘powers to direct andcontrol the and can besummarisedashaving in section 88oftheMarineSafety Act of a Harbour Master are outlined Act 1998(NSW). The general functions under section85oftheMarineSafety Each HarbourMaster isappointed Master inallcommercial portsinNSW. Port Authority hastherole ofHarbour • • Export Framework. governance ofHunter Coal • • • of: management retail/commercial properties common userberthfacilities cruise facilities andterminal services 2 Highlights

Pilot cutter en route to pilot boarding ground passing container ships at Brotherson Dock, Port Botany

2.1 Our people Improving diversity and inclusion Work, Health and Safety Port Authority has partnered with Tribal Safety is important to Port Authority and Warrior to launch its first Indigenous as an organisation a key strategic goal is Female Maritime Traineeship Program to achieve a consistent and strong safety in March 2020. Port Authority is record. It also aims to create a workplace sponsoring four trainees through Tribal where our people can thrive in a work Warrior to achieve qualifications as either environment that promotes good health, Master <24m Near Coastal (Restricted wellbeing and flexible ways of working. to Sheltered Waters) or Marine Engine Driver Class 3 qualification over a two- Employee health has never been more year period. (See Section 10.3 for details.) in focus, with employees demonstrating their willingness and flexibility to During the year, a suite of People work safely throughout the COVID-19 and Culture policies were introduced pandemic. The focus on standardising to standardise and improve employee critical risk controls across the conditions. These included a Family organisation is an example of the and Domestic Violence Leave Policy direction Port Authority is heading. and a Grievance Policy. (See Section 10.4 (See Section 10.1 for details.) for details.)

Highlights • 7 8 Port Authority of New South Wales Annual Report 2019/20 (See Section 4for details.). on bothtrade andcruiseshipping. bushfires andthe COVID-19 pandemic direct result oftheimpactsNSW This downturn isconsidered to bea per cent from 6040vessels in 2018/19. and cruiseships.This areduction of7 This figure includesbothtrade vessels in NSW administered by Port Authority. commercial vessels visited thesixports During 2019/20, atotal of5642 2.2 in 2018/19. and 1.4millionpassenger exchanges a reduction from 323cruiseshipvisits passenger exchanges. This was and accommodating closeto 1.2 million destination, hosting 277 cruiseshipvisits as Australia’s pre-eminent cruise Sydney maintaineditsposition maiden visits. Eden andNewcastle all enjoying cruise shipvisits,withSydney Harbour, 15 March 2020. NSW welcomed 313 introduced abanon cruiseshipsfrom pandemic andtheAustralian Government before COVID-19 was declared a global NSW enjoyed astrong cruiseseason 2.3 Queen Elizabethcallsinto Sydney’s Overseas Passenger Terminal (cruise andtrade) Total vessel visits Cruise inNSW onward voyages. could reprovision inpreparation for their by allowing vessels to berth,sothey industry through theCOVID-19 crisis Port Kembla assisted the cruise to the impactoftheCOVID-19 pandemic. redeployments from otherportsdue in March andApril2020, following 2018/19. Five ofthesesixvisitsoccurred visits in2019/20 compared to onein Port Kembla received sixcruiseships the Explorer Dream andtheSeaPrincess. two maidenvoyages, beingvisitsfrom to the cruiseban.The seasonboasted tovisits in2018/19 12cruisevisitsprior Newcastle’s visitation fell from 15cruise up 20percent from 15visitsin2018/19. season with18cruiseshipvisits.This was coast, enjoyed itsstrongest ever cruise visits after 15March, Eden onNSW’s south resulting inthecancellation of15cruise the banoncruiseshipsdueto COVID-19 Despite bushfires inJanuary2020 and 31 cruise shipvisitsin2018/19. ships visits.This was anincrease from received acombined total of36cruise Newcastle, Eden andPort Kembla Regional portsinNSW including Trial Bay (South West Rocks) hosted Working alongside Destination NSW, the expedition cruise ship Caledonian Sky Port Authority has developed a new again in October 2019, while Batemans publication, Cruise into Sydney and NSW Bay welcomed the Caledonian Sky Along the Blue Highway, which details in October 2019 and Seabourn Encore maritime information and shore‑side again in February 2020, prior to the tourism offerings for all regional ports cessation of cruise in March 2020. across NSW. This information will accompany Harbour Master’s instructions Regional port development and passage plans for each port, as well as experience-development Action 9 of the NSW Government’s programs (run by Destination NSW). Cruise Development Plan calls for the It provides invaluable information NSW Government to support the growth to cruise lines looking for new ports of the cruise industry in key NSW regions to include in Australian itineraries, and new destinations through: and is helping to drive visitation to these • education and training programs NSW regional ports. A revised version to build the tourism industry capability of Cruise into Sydney and NSW Along to cater for cruise calls the Blue Highway covering all 10 regional cruise destinations will be completed • supporting locally run ambassador in late 2020. programs The model of Port Authority and • working with local government to Destination NSW working together to explore wayfinding at port facilities. build cruise visitation in regional ports In response, Port Authority is leading is unprecedented; in all other Australian the NSW Regional Port Development states these initiatives are led by state project with support from several NSW tourism offices. The NSW model provides Government agencies. A large focus the best outcome for ports and cruise for the project has been a port viability lines alike by marrying maritime and study scoping the marine capability tourism expertise. of a number of NSW regional ports and also including the port’s viability as a cruise destinations.

Caledonia Sky cruise ship at anchor in Trial Bay, NSW

Highlights • 9 10 Port Authority of New South Wales Annual Report 2019/20 model hasbeenemulated in Newcastle developing regional cruiseports.This industry asthetext-book methodfor Eden modelhasbeen recognised by (See Section15,Port of Eden.) The development andallshoreside support. Welcome Ambassadors, localexperience provide community engagement, Cruise with alocalCruiseCoordinator, to local brand CruiseEden to operate, Council andPort Authority. This enables relationship between BegaValley Shire there isalong-standing collaborative example ofthisisseeninEden where standards indestination delivery. An stakeholders to ensure consistent Authority isworking closelywithkey Across allregional NSW ports,Port Coordinators withineachregional port. program andto facilitate localCruise Cruise Welcome Ambassador training organisations to deliver astate-wide is working withregistered training shore-side information, Port Authority In additionto providing maritimeand Queen Elizabethcomes to Eden visitation to theseregions. destinations, thereby encouraging cruise delivered across allNSW cruise class standards are recognised and through thismodelwillensure world- The development of regional ports cruise visitation. a localCruiseCoordinator to facilitate Newcastle working group hasappointed groups andtheportoperator. The Cruise Government stakeholders, key industry group comprising key localandNSW with theestablishment ofaworking and Australian economies. and itsmany benefits to theNSW to supporttheNSW cruiseindustry in Sydney. This isalong-term approach addressing cruisecapacityconstraints 2018, to assess different options for Development Plan,released inJuly a commitment intheNSW Cruise The NSW Government made business case Cruise capacitydetailed Throughout 2019/20, Port Authority 2.4 The Bays West worked on preparing a detailed business case to investigate cruise capacity and Precinct industry demand and to assess two sites The Bays West area comprises in Yarra Bay near Port Botany (Detailed Rozelle Bay, White Bay and Glebe Business Case). Island alongside the Rozelle Rail Comprehensive community and Yards and White Bay Power Station. stakeholder consultation took place Currently the precinct is a working in late 2019 to allow the community harbour, primarily used for industrial to meet the project team, ask questions and maritime purposes. and provide feedback for a potential While planning for the precinct is preferred site option. The consultation underway, the port and working harbour was aimed at understanding: functions in the Bays West precinct will • how the community uses, and what continue alongside major infrastructure it values about, the local area, to help project delivery being carried out. minimise potential construction and Specifically, the WestConnex project has operational impacts licensed an area of land on Glebe Island • ideas that the local community to stage construction works for the and stakeholders may have for how Rozelle Interchange and Iron Cove Link, the area might be used in the future, which will provide a new underground if a potential terminal progressed. motorway interchange to City West Link and provide an underground bypass of In late 2019, Port Authority also Victoria Road between Iron Cove Bridge engaged with cruise operators and and Anzac Bridge, with links to the the broader industry to assess the proposed Western Harbour Tunnel. viability of the options, potential Other major infrastructure projects, partnering and financing arrangements. including the Western Harbour Tunnel A range of technical studies were also and Sydney Metro West, also involve commenced, including marine modelling, plans to licence land from Port Authority maritime and landside engineering, in the Bays West Precinct for project traffic and transport analysis and an delivery. The land will be used by these environmental and planning assessment. agencies for construction staging, truck However, on 12 April 2020, the NSW marshalling and handling dredged Government announced that, given material. The main locations include that the long-term impacts of COVID-19 areas of White Bay (berths 1, 2 and 3), on the cruise industry were yet to the site adjacent to White Bay Power be determined, the Detailed Business Station, and Glebe Island berths 3 to 6. Case would be put on hold for a period (See Section 12.8 for details.) of up to 18 months. This decision was made particularly because the Detailed Business Case includes estimates of forecast passenger growth. These estimates can only be meaningfully updated once the impacts of COVID-19 on the cruise industry, and the tourism industry more broadly, are determined.

Highlights • 11 12 Port Authority of New South Wales Annual Report 2019/20 concerns, asexplained inSection17. a range ofways to mitigate these user facility. Port Authority hasadopted concerns for residents aboutthemulti- planning consultation process asthekey appearance were identifiedduringthe Noise andthefacility’s exterior on 28 October 2019. and Determination were released and aggregates by sea.The report RtS for amulti-userfacility to receive sand a Response to Submissionsreport (RtS) of Environmental Factors (REF)and Port Authority prepared aReview community consultation inearly2018, Following aperiodofextensive at Glebe Island Multi-user facility below. Key projects for 2019/20 are described shipping needsoftheState ofNSW. for the existing andfuture commercial port facilities andservices to cater Port Authority managesanddevelops 2.5 An artist’s impression ofthenew Eden Welcome Centre Capital projects 2021. (SeeSection12.8for details.) programmed to becompleted by mid- will commence inAugust 2020 andis Construction ofthemulti-userfacility each year. (SeeSection15.4for details.) to 100,000 visitingcruisepassengers the Eden Welcome Centre willgreet up the Eden cruiseberth.Itisexpected that fisherman’s co-op site in Eden, close to on what was previously known asthe Welcome Centre –anew buildinglocated commenced construction oftheEden In February 2020, Port Authority Eden Welcome Centre life. They have certain operational nearing theendoftheiroperational Ted Noffs) were builtin1987 andare by Port Authority (Shirley Smithand The current firefighting tugsutilised Sydney HarbourandPort Botany. response / firefighting vessels for procurement oftwo new emergency Port Authority progressed the vessels Replacement firefighting limitations, and the need for ongoing 2.6 The year ahead – maintenance has become more frequent and unpredictable, increasing the risk capital projects of potential service disruption. Over the coming 12 months, The procurement of new, modern work will progress on the projects emergency response/ firefighting described below. vessels will enhance the level of service to external stakeholders such as Fire • revitalisation works at Macquarie Pier and Rescue NSW and port stakeholders Newcastle (see Section 13.5) that work closely with Port Authority • the Overseas Passenger Terminal operational teams during maritime Berthing Infrastructure project (see emergencies. (See Section 12.9 Section 12.10) for details). • replacement of emergency response/ firefighting vessels (see Section 12.9) Aids to Navigation • an upgrade to Hornby Lighthouse upgrade works (see Section 12.10) Port Authority is responsible for over • completion of both the multi-user 120 Aids to Navigation (AtoNs), which facility on Glebe Island (see Section help support the safe navigation of 12.8) and the Eden Welcome Centre commercial ships and recreational boats (see Section 15.4). in its ports and harbours. Over the past 12 months, several AtoNs have been upgraded, with works undertaken including rejuvenation of paint systems, replacement of piles and structural components and upgrade of lights to new technology. (See Section 12.10 for details).

Highlights • 13 14 Port Authority of New South Wales Annual Report 2019/20 with abudgetof$36.4million. for theyear were $36.8millioncompared depreciation, andamortisation (EBITDA) Intent. Earningsbefore interest, taxes, its 2019/20 Statement ofCorporate compared to thekey targets setin for thereporting periodwas favourable Port Authority’s financialperformance policy andstringent cost controls. interruption insurance, cruisecancellation mitigated by measures suchasbusiness season anditsfinancialimpacts were impacting at the endofthepeakcruise vehicle trades. However, COVID-19 began the container, bulkliquidsandmotor activity, but alsoto thedownturn of these relate to the interruption ofcruise 2019/20 were significant.Most notably, The financialimpactsof COVID-19 in White Bay noiseattenuation projects. Capacity DetailedBusiness Caseand expenditures suchastheCruise financial year due to extraordinary down from $43.2millionintheprevious although thiswas budgeted to be amortisation (EBITDA) of$36.8million, before interest, taxes, depreciation and financial targets andachieved earnings In 2019/20, Port Authority metits 3.1 3 • and Botany Bay: Operations in Sydney Harbour During thereporting year, Marine and Botany Bay Sydney Harbour operating through Port Authority’s ports. movement ofcommercial vessels promoting thesafe andefficient services to ahighstandard in2019/20, Marine Operations continued to deliver 3.2 for vessel movements into, out completed 3943 pilot movements Financial Financial Marine operations performance Summary review of operations to allow for itto beused for government Operations team cleared its footprint emergency response hub, theMarine Glebe Islandbeingsetup asadedicated Further, after approximately 20years of • • • • • improvements in2019/20 through: on delivering internal operational Marine Operations continued itsfocus • • • • • • fighting vessels for Sydney and Botany. for two new emergency response / fire- including aRequest for Proposals an organisation-wide fleet review, with staff holding regular consultative workshops Marine ManagementSystem (PMMS) Procedures (MOPS)sectionofthePort kept upto date intheMarineOperating procedures, forms andchecklists are undertaking furtherwork to ensure all maintenance onitsvessels a model basedmore onpreventative allow MarineOperations to shiftto management for sometime, to a tool that hasbeenusedinasset management system (CMMS), being of thecomputerised maintenance bedding down theportofficers’ use training assessment anddevelopment through a heavy focus oncompetency in both ports security andenvironmental patrols completed multipledailynavigation, conducted four fire-tug water displays requiring assistance or fire, boomoperations or vessels responded to 211reports ofpollution issued 4574 bunker permitnotifications undertook 535 auditsofwork permits transfer checks issued 1193 bulkdangerous goods of approximately 11perday a pilot onboard –beinganaverage of, andwithintheportsrequiring A coal carrier departs Newcastle Harbour

project staging. A smaller footprint • actioned 283 bulk dangerous goods is being established in White Bay transfer checks to ensure vital marine pollution • undertook 392 audits of work permits emergency response equipment remains at the ready. • actioned 335 bunker permit notifications Marine Operations also supported • responded to nine calls reporting the transition from the use of pollution Parallel Elevated Gangways (PEGs) at the Overseas Passenger Terminal • carried out navigation to the new Seaport Passenger Boarding and environmental patrols. Bridges (SPBBs). The operations of the SPBBs are now handled by the Cruise Port Kembla team, and Marine Operations assisted with this operational transition and risk During the reporting period, Marine assessment process. Operations: Looking forward to 2020/21, Marine • completed 1555 pilot movements Operations will focus on improving for vessel movements into, out of, the collection and use of data and within the ports requiring a pilot and information to support driving on board – being an average of five operational excellence in Port per day Authority’s ports. • undertook hydrographic surveys for all the port channels and berthing boxes Newcastle Harbour • issued 44 and audited 39 dangerous During the reporting year, Marine goods cargo permits Operations in Newcastle Harbour: • undertook 74 audits of work permits • completed 4606 pilot movements for vessel movements into, out • issued 86 bunker permit notifications of, and within the ports requiring and audited 68 vessels a pilot on board – being an average • carried out navigation and of 12.6 per day security patrols.

Summary review of operations • 15 16 Port Authority of New South Wales Annual Report 2019/20 and security. the PSOLfunctions,emergency response and isalsoresponsible for carryingout The porthasadedicated pilotageservice for lay-up andrepair at itsshipyard. trade, shipscallto Goodward Island While theporthasnoregular commercial by tugs. in 2018/19. Most ofthesevisitswere to Port ofYamba, down from 38visits In 2019/20 there were 30shipvisits Port ofYamba • • • responsible for: Master andpilotageservice, andisalso The porthasadedicated Harbour departures andeightharbourremovals. the year comprising 44arrivals, 44 There were 96piloted movements during an increase from 89 visitsin2018/19. were atotal of106vessel visits,whichwas very challengingyear for theregion. There Port ofEden in2019/20, inwhat was a Vessel numbersoverall increased at the Port ofEden • • and public withinthesespaces: and infrastructure, and itsemployees the security ofitswaterways, assets Port Authority iscommitted to 3.3 purpose berth. Royal Australian Navy’s (RAN)multi- management ofSnugCove andthe emergency response andsecurity carrying outthePSOLfunctions and the White Bay Cruise Terminal the Overseas Passenger Terminal two world-class cruiseterminals: Port of Eden andthe Port ofYamba Newcastle Harbour, Port Kembla, of Sydney Harbour, Port Botany, the waterways andshippingchannels Port security and drills,proactively developing facilities, undergoing securityexercises Port Authority iscontinually monitoring • • • • • • included: response andcapabilities.These agencies, andto improve itssecurity by Australian andNSW Government contemporary riskinformation provided a numberofdevelopments to access In 2019/20, Port Authority implemented • • • • ongoing excellence. customer service focus andensuring company, establishing astrong modules for thecontracted security expanding customer service-training cruise shipvisits introduction oftheEden CruiseWharf and traffic managementwiththe expectations inrelation to security security company to meetoperational for Eden anddeploying thecontracted preparing anew MaritimeSecurity Plan Port SecurityCommittee meetings security network hosting thescheduled continuing to buildastrong port-wide Authority facilities, assets andterminals upgrade for allSydney-based Port completing theaccess control system Port Botany Boat Ramp) Botany (Brotherson Houseandthe Terminal, Moores Wharf andPort Passenger Terminal, White Bay Cruise upgrading theCCTV at theOverseas responses to different threat scenarios between shipandshore security and Voyager to buildcontinuity with visitingshipsCelebrity Solstice undertaking two operational exercises operate withinthewaterways. Maritime Industry service providers that Port Botany boat ramp operations used for drybulkandimport/export White Bay andGlebeIslandwharfs Eden CruiseWharf contemporary security mitigation • updating the access control system measures to evaluate and respond to the at all regional Port Authority facilities latest world events and trends. • updating the regional CCTV programs Port Authority maintains a strong • continuing to build strong port-wide working relationship with Australian security networks through the Port Government regulators from the newly Security Committee. formed Department of Home Affairs and was compliant with the external audits and inspections as part of the 3.4 Hydrographic Department of Home Affairs’ Maritime Compliance Plan. surveys The implementation of the Security of In 2019/20, the hydrographic survey Critical Infrastructure Act 2018 (Cth) team completed 54 surveys in Port provided, in conjunction with the Jackson, Port Botany, Port Kembla, Port Department of Home Affairs, a broad of Yamba, and Port of Eden. The team range of risk and intelligence products to also completed 16 contract hydrographic inform the Australian Maritime sector. surveys for a number of government The COVID-19 pandemic has presented and non-government agencies. This many challenges to Port Authority as included work for Viva Energy; Royal a business (see Section 11), and will Haskoning DHV; Caltex Australia; NSW continue to do so. The security scope Ports; Clarence Valley Council; Patrick of Port Authority will be influenced Terminals; DP world; Banks Events; and by legislation and COVID-19 protocols Patti’s Hire. in relation to cruise operations and The survey team has worked closely corporate functions. with the Australian Hydrographic Office to produce a world-first high definition The year ahead official electronic chart for use by Port Authority’s marine pilots and ships with A number of initiatives have been electronic charting capabilities entering identified for 2020/21 to assist Port Port Authority ports. Authority to provide robust, efficient and risk-based security outcomes for employees, passengers, crew and customers. Some of these initiatives include: • revising all port-wide security risk assessments in conjunction with the NSW Police Counter Terrorism and Special Tactics Command asset protection unit to include the critical infrastructure legislative requirements for the Overseas Passenger Terminal and White Bay Cruise Terminal • implementing security responsibilities for COVID-19 protocols • reviewing the security awareness training for Port Authority staff A hydrographic chart of Circular Quay, produced and contractors by Port Authority’s hydrographic survey team

Summary review of operations • 17 18 Port Authority of New South Wales Annual Report 2019/20 entering Port Authority’s NSW ports. higher-accuracy chartinformation when and shipsto have access to thesame overlays. This willenableportpilots produce bathymetric electronic chart the Australian Hydrographic Office to to beinvolved intheworld-first trialwith In 2020/21, thesurvey team willcontinue feed into under-keel clearance systems. managing effective portoperations and anemometers, whichare essential for wave riders,current meters andwind This equipmentincludestidegauges, Kembla to assist pilotageinbothports. ocean) equipmentinNewcastle andPort weather andocean monitoring (met- The survey team managesandmaintains mariners. bathymetric electronic chartsfor the Hydrographic Office to produce visits. Alldata collected was sentto preparation for potential cruiseship Coffs HarbourandBatemans Bay in the NSW minorportsofTrial Bay, across theState. This includedsurveying continuing to survey bays andtributaries navigation across theNSW coast by carried onitscampaignto aidsafe The hydrographic survey team also Bays andTributaries program Licence, MinorPorts and Port Safety Operating mapping information system. stored data visuallyto anelectronic internally andexternally to linkextensive which enablesstakeholders both Geographic Information System (GIS) roll outto production thePort Authority The survey mappingteam willformally visits from cruisevessels. be completed inanticipation ofpotential Stephens, KiamaandJervisBay willalso surveys ofminorports suchasPort within Sydney Harbour. Hydrographic hydrographic surveys offerry routes continue, withanemphasisonupdating Port governance survey work willalso systems intheseports. inputs into theunder-keel clearance in bothNewcastle andKembla, improving significant improvements andupgrades and Eden. The team willlookto support Bay, Port Kembla, Newcastle, Yamba equipment inSydney Harbour, Botany maintain thePort Authority met-ocean The team willcontinue to install and Port Authority’s survey team memberandvessel 4 Port highlights

Total vessel visits (trade vessel and cruise ship visits), all ports, 2019/20

TOTAL TOTAL 2019/ 2018/ JULY AUG. SEPT. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUNE 20 19 Port Botany/ 137 137 137 143 131 133 129 106 111 123 125 119 1,531 1,660 Kurnell Sydney Harbour/ 65 67 62 85 108 128 119 95 104 35 31 32 931 1,130 Gove Cove* Newcastle 208 200 174 205 182 217 195 164 188 191 167 199 2,290 2,312 Port Kembla 72 66 58 65 62 63 58 65 76 56 56 57 754 796 Eden 4 11 6 5 7 11 5 11 13 5 14 14 106 104 Yamba 3 8 3 0 1 1 2 1 2 2 2 5 30 38 TOTAL 489 489 440 503 491 553 508 442 494 412 395 426 5,642 6,040 Note: Includes visits at both Port Authority’s berths and privately owned terminals. *Includes commercial and service provider vessels (such as bunker vessels ICS Reliance).

During 2019/20, a total of 5642 commercial vessels, including trade vessels and cruise ships, visited the six ports in NSW administered by Port Authority. This was down 7 per cent when compared to 2018/19. This downturn can be attributed to the events that occurred impacting NSW from the end of 2019, being bushfires in December 2019 and January 2020 and the impacts of the COVID-19 pandemic from March 2020. All cruise vessel visits were suspended from 15 March 2020 and currently remain suspended until the Australian Border Force lifts the cruise ban. Construction material imports to Sydney also declined in response to the economic slowdown. As parts of China went into COVID-19 economic shutdown, container vessel visits to the ports slowed considerably. Following the onset of the pandemic’s physical presence in Australia, shipping lines cancelled sailings in response to perceived reduced consumer demand for imported goods. Vessel visits to Port Kembla were 5 per cent lower than 2018/19, due to a reduction in car carrier visits. The reason for this was that 2019/20 saw a general reduction in motor vehicle sales, associated with reduction in consumer discretionary spending. However, machinery and project cargo performed well throughout 2020. Coal export volumes in Port Kembla and Newcastle were solid throughout the financial year. With drought conditions continuing in NSW, there were again minimal grain exports through Newcastle or Port Kembla. Drought continued to have a material impact on other agricultural related trades at Newcastle, such as importation of fertiliser.

Port highlights • 19 20 Port Authority of New South Wales Annual Report 2019/20 Trade vessel visits, allports,2019/20 between JanuaryandMay 2020. Natural Wood Exports’ (ANWE)facility wood chipexports from theAllied considering that thebushfires halted visits were remarkably highin2019/20, Port Kembla vessel visits.Eden vessel throughout 2019/20, whichimpacted noted above, carimportswere down Newcastle performed well overall. As Coal volumes inbothPort Kembla and which hasalsoimpacted vessel calls. bunker vessel services cease from March, The cancellation ofcruiseshipssaw in the needfor aviation andautomotive fuel. primarily dueCOVID-19 restrictions limitingtravel andcausingsubsequentreductions its overall vessel callsto theport.Bulkliquids vessel numberswere lower than2018/19, service provider, whichagainuseslarger vessels, resulting inthat consortium reducing visit. Inaddition,alarge European consortium merged withanotherEuropean/Asian decreased numberofvessel callsbuthighergross tonnage for thevessels that did servicing theEast Asiacontainer trade increased theirshipsize, whichresulted ina number ofconsortia changesthat occurred inlate 2019. Inthat regard, two consortia sailings inthefirst four monthsof2020, asa result ofthe COVID-19 pandemicanda largely driven by lower numbersofcontainer vessel visitsdueto anumberofcancelled Vessel visitsto Port Botany were down 8percent compared to 2018/19. This was * Includescommercial andservice provider vessels (such asbunker vessels ICSReliance). Note: Includesvisitsat both Port Authority’s berthsandprivately owned terminals. Port Botany/ Kurnell Gove Cove* Sydney Harbour/ Newcastle Port Kembla Eden Yamba TOTAL JULY 208 481 137 57 57 72 72 4 3 AUG. 200 474 474 137 65 53 53 11 8 SEPT. 424 137 174 48 58 4 3 OCT. 475 475 202 143 60 65 0 5 NOV. 452 177 131 62 76 5 1 DEC. 503 133 215 63 63 82 9 1 JAN. Pilot andtrade vessel, Newcastle Harbour 462 193 129 58 76 76 4 2 FEB. 389 106 164 50 65 3 1 MAR. 445 188 73 73 10 111 61 61 2 APR. 404 123 191 54 29 5 2 MAY 394 125 167 30 56 14 2 JUNE 426 199 119 32 57 57 14 5 TOTAL 5,329 2,278 2019/ 1,531 20 654 748 30 88

TOTAL 5,686 2018/ 2,297 1,660 807 19 795 795 89 38

Cruise ship visits, all ports, 2019/20

TOTAL TOTAL 2019/ 2018/ JULY AUG. SEPT. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUNE 20 19 Sydney Overseas 5 10 11 20 22 27 25 26 19 0 0 0 165 214 Passenger Terminal Sydney White Bay* 2 1 3 5 10 18 16 15 11 0 0 0 81 95 Sydney other 1 3 0 0 0 1 2 4 13 6 1 0 31 14 Newcastle Harbour 0 0 0 3 5 2 2 0 0 0 0 0 12 15 Port Kembla 0 1 0 0 0 0 0 0 3 2 0 0 6 1 Eden 0 0 2 0 2 2 1 8 3 0 0 0 18 15 Total 8 15 16 28 39 50 46 53 49 8 1 0 313 354 *Includes visits at both White Bay Cruise Terminal and White Bay 4.

NSW welcomed 313 cruise ship visits in 2019/20, which was down 12 per cent from 354 in 2018/19. Cruise visits to Sydney’s Overseas Passenger Terminal and White Bay Cruise Terminal were the most severely impacted by the COVID-19 pandemic and the Australian Government’s ban on cruise shipping from 15 March 2020. Vessel visits to ‘Sydney other’ reflect berthing by cruise ships as they refuelled and reprovisioned in preparation for return journeys to their home ports. The increase from one to six cruise ship visits in Port Kembla compared with the previous reporting year reflects cruise ship redeployments from other ports for refuelling and reprovisioning due to the COVID-19 pandemic. The number of cruise ship visits to Eden in 2019/20 was very positive and reflects strong demand for visits to the newly opened Eden Cruise Wharf.

Port highlights • 21 22 Port Authority of New South Wales Annual Report 2019/20 Coal vessel entering Newcastle Harbour 5 Chair’s report

The reporting year has been like no other, from devastating bushfires in NSW to the COVID-19 pandemic that has impacted the world. The critical importance of our ports has never been more apparent. As an island nation, our ports are the trading gateways to the world. Ports, freight and supply chains have proven to be remarkably adaptable. I am so proud of the way our organisation and our people have reacted with willingness and flexibility to meet the challenges presented by the pandemic. Directors recognise that for some of our people this has been a challenging time and we thank everyone for their dedication, patience and resilience.

Impacts of COVID-19 Financial performance in 2019/20 has proven to be robust, considering the impacts of COVID-19 on the nation’s economy generally and to the cruise industry in particular. I am pleased to report on a successful year, marked by a positive financial performance amidst an unanticipated world pandemic that has tested the mettle of our organisation to work differently and the resilience of our staff. Port Authority’s financial performance for the reporting period was favourable compared to the key targets set in our 2019/20 Statement of Corporate Intent. Earnings before interest, taxes, depreciation and amortisation (EBITDA) were $36.8 million compared with a budget of $36.4 million. Despite this result, the impacts of the COVID-19 pandemic on our financial results in 2019/20 were significant. Predominantly, the cessation of cruise activity from 15 March 2020 and the downturn of the container, bulk liquids, motor vehicles and construction materials markets in response to declining consumer demand and economic activity resulted in an unfavourable income variance to the budget of $13.3 million. The impact to cruise revenue would have been more severe but for the onset of COVID-19 occurring at the end of the cruise peak season and Port Authority’s two key strategic risk controls – being business interruption insurance and the cruise booking cancellation policy – which partially offset the loss of income from cruise vessel visits. In June 2020 an initial payment of $5.0 million was received and recognised as part of the insurer’s assessment of our business interruption claim. Cruise booking cancellation fees charged as a result of ‘business-as-usual’ booking cancellations for the period before the ban have also assisted our financial position. Business interruptions and government stimulus, combined with Port Authority’s own cost-control measures, also allowed Port Authority to make some offsets in the form of cost savings or cost deferrals. Throughout the pandemic, Port Authority also sought to provide assistance to the port industry generally and to its tenants, including by providing rental assistance or deferrals, by freezing port charges in all ports during 2020/21), and by not applying our standard booking cancellation fees to the cruise industry during the COVID-19 ban on cruise shipping.

Chair’s report • 23 24 Port Authority of New South Wales Annual Report 2019/20 and the lessons learntshared across Port Authority. The four Lost Time Injurieswere allthoroughly investigated, actionsimplemented and three MedicalTreatment Injuries,Port Authority continues to strive for zero. from 207 to in2018/19 149 in2019/20. Whilst there were four Lost Time Injuries safety ofourpeople. The total numberofincidentsandhazards reported decreased response to theCOVID-19 pandemicwas equallyaboutbusiness continuity andthe Safety isat thecore ofeverything Port Authority does,soitis nosurprisethat the Safety response an ongoing source ofeconomic benefit to the region. and the COVID-19 cruiseban.This isaspectacularresult for aregional town –providing ships callsthat hadto becancelled dueto theimpactofbushfires inthe region 18 cruise shipscalls,up20percent on2018/19, andhadbookingsfor afurther15cruise to cruise visitsto Port ofEden in2020. Eden achieved arecord cruise seasonwith of the$44millionEden CruiseWharf inAugust 2019 andthesignificantincrease Our commitment to developing cruiseinregional portshasflourishedwiththeopening industry more broadly, are determined. only beupdated once theimpactsof COVID-19 onthecruiseindustry, andthetourism the detailedbusiness caseincludesestimates offorecast passenger growth, whichcan business casewould beputonholdfor aperiodofupto 18months.This isbecause impacts ofCOVID 19onthecruiseindustry are yet to bedetermined, thedetailed However, on12April2020, theNSW Government announced that, given thelong-term were commenced, andapreliminary round ofindustry consultation was undertaken. comprehensive community andstakeholder consultation took place, technical studies for additionalcruiseinfrastructure inYarra Bay nearPort Botany. Aspart ofthis, case to investigate cruisecapacity, industry demandandassess two potential sites Case. Throughout 2019/20, Port Authority started preparing adetailedbusiness key initiatives, includingthepostponement oftheCruiseCapacityDetailedBusiness From astrategic perspective, thepandemichascausedsomere-prioritisation ofour Cruise on 27 November 2019. as a Director on the Board andPhilipwas appointed asaDirector ofPort Authority 2019 andtheappointmentofPhilipHolliday to therole, Grant stepped down With thedeparture ofGrant Gilfillan astheChiefExecutive Officer inSeptember contribution over many years andwishthemallthebest for theirnext endeavours. on thePort Kembla Port Corporation Board. We are grateful for theirimportant had previously served ontheSydney Ports Corporation Board, andGerard hadserved of the Sydney, Newcastle andPort Kembla portcorporations on1July2014. Penny Both Penny andGerard were Directors ofPort Authority since theamalgamation of the terms ofbothPenny Bingham-HallandGerard Sutton on31December 2019. During 2019/20, thecomposition oftheBoard changedfollowing theexpiry Governance andmanagement I would like to thank Grant for his leadership and service. During his 12 years as CEO he oversaw significant change and re-positioned Port Authority into a strong, profitable organisation delivering reliable and professional services to its customers. There are three remaining vacancies on the Board, and we are currently working with the NSW Government to fill those positions.

Focus for 2020/21 Our immediate focus for 2020/21 will be to assist industry, particularly the cruise industry, to recover from the impacts of the COVID-19 pandemic. Consideration is underway of how we might assist a cruise ‘restart’ and provide support and encouragement to this industry, while ensuring the safety of passengers, crew and our staff. It is anticipated that domestic cruising will return in a staged manner, starting with intra-state then interstate cruises. It is unlikely that international cruising will return to its pre-COVID status in the short to medium term. To assist the stimulus of the NSW economy we will continue to fast track the delivery of our strategic capital projects, including the Overseas Passenger Terminal Berthing Infrastructure Project and the replacement of emergency response / firefighting vessels. A key area of focus will continue to be the advancement of a sustainability plan within the identified five strategic priorities of our business and identifying opportunities to grow our business.

Robert Dunn Chair Port Authority of New South Wales 30 September 2020

Chair’s report • 25 26 Port Authority of New South Wales Annual Report 2019/20 6 • Particular highlightsin2019/20 include: I amvery pleasedthat anumberofnoteworthy projects have beendelivered thisyear. transition into themaritimeworkforce. that they are sharingto assist thesewomen achieve results through TAFE, to effectively a two-year period.Our MarineOperations officers have a wealthofskill and experience (Restricted to Sheltered Waters) orMarineEngineDriver Class 3qualification over program partnerto achieve qualifications aseitherMaster <24m Near Coastal Traineeship Program inMarch 2020 andissponsoringfour trainees through our Indigenous youth. Port Authority alsolauncheditsfirst Indigenous Female Maritime and theirprogram, whichoffers mentoring andtraining in maritime qualifications to this year withPort Authority’s collaboration withTribal Warrior AboriginalCorporation An initiative to bolster diversity andsustainability withinourworkforce commenced the organisation andwithineachofPort Authority’s five strategic priorities. initiatives. Port Authority willfocus on continuing to embedsustainability across are beingidentifiedandsupported to lead,orbeinvolved in,a variety ofsustainability now to ensure ourfuture success. Sustainability advocates from withinourorganisation long‑term goals rather thansimplyshort-term gains,anddoingeverything we can by improving socialandenvironmental outcomes, makingdecisionsthat support across every facet ofourbusiness. For us,sustainability meanssecuringourlongevity Underpinning ourstrategic planisacommitment to embedsustainability practices as to ourcustomers andstakeholders inAugust 2020. with thework doneonthisto date andlookforward to releasing itto ourpeopleaswell our corporate values, better reflecting ourfuture aspirations. Iam extremely pleased input, andpresents five new strategic priorities for ourbusiness. We have also refreshed The visionandstrategic planhasbeenshapedanddeveloped withsignificant staff Officer – reflectinga more customer-centric approach. made, withnew roles –suchastheappointmentofaChiefCustomer andCommercial 2020 and isprogrammed to be completed in mid-2021. between 1100–1500 truckloads.Construction isscheduled to commence inAugust in close proximity to GlebeIslandover thenext 10years –asoneship replaces for construction material to service themajor transport projects under construction industry. The facility willprovide alow-cost, low-impact andsustainable entry point and distribute sand andaggregates at Glebe Island berths1and2for theconstruction of a multi‑user facility at GlebeIsland.This common-user facility willreceive, store The finalisation ofthe Response to Submissions Report andDetermination report Chief Executive Officer’s the next five years. Changes to theExecutive team were vision andstrategic planto guidetheorganisation through of arefreshed Executive team andthedevelopment ofanew My first prioritiesasChiefExecutive have beenthe formation to lead thisorganisation ofwhichIamsoimmenselyproud. Port Kembla ports’amalgamation, itwas anatural aspiration Master, Sydney in2014, after theSydney, Newcastle and and progressing to ChiefOperating Officer andHarbour General Manager, Operations andHarbourMaster in2011, Commencing at Sydney Port Corporation astheExecutive marked theachievement ofalife-long career goal. My appointmentasChiefExecutive inDecember 2019 • The installation of two Seaport Passenger Boarding Bridges (SPBBs) at the Overseas Passenger Terminal in July 2019 ahead of the 2019/20 cruise season. The SPBBs support visits by the larger Quantum-class vessels that carry over 5000 passengers. Together, the bridges move over 1200 passengers every 30 minutes – improving the terminal’s operational efficiency, increasing capacity and allowing for quicker and easier embarkation and disembarkation for passengers.

The financial year 2019/20 presented significant challenges for our business. In December 2019 and January 2020, bushfires threatened regional south-east NSW and on 4 January Port of Eden was surrounded by a maelstrom of fire. Raging bushfires incinerated two stockpiles of hardwood woodchips and the associated stackers and conveyor systems at the Allied Natural Wood Exports’ (ANWE) facility. The export facility was rendered inoperable until May 2020. The COVID-19 pandemic and the Australian Government’s suspension of all cruise activity in Australian waters from 15 March 2020 has also significantly impacted our business as a service provider to this industry. During 2019/20 a total of 5642 commercial vessels – both trade and cruise ships – visited out ports compared to 6040 in 2018/19. This reduction is largely attributable to reduced cruise ship visits to Sydney and Eden, but also to a reduction in container ships, car carriers and bulk liquid vessel visits in response to a weakened economy due to the COVID-19 pandemic. The cessation of cruise ships visits at the end of the peak cruise season has resulted in a reduction from 354 visits in 2018/19 to 313 visits in 2019/20. Passenger numbers in Sydney are down from 1.4 million in 2018/19 to 1.2 million in 2019/20. The regional economy has also been severely impacted by the cancellation of 15 scheduled cruise ship visits to Eden. Faced with adversity, I am impressed by the immediate and resilient response by our people to the COVID-19 crisis. Our COVID-specific Business Continuity Plan was enacted quickly and effectively to safeguard our people and ensure our continuity of service provision to our customers. Port Authority made bold decisions and acted pre‑emptively whilst in concert with the Australian Government directives to protect our marine pilots who are at the interface with international shipping. I would like to thank the Chairman, Robert Dunn, and the Board, for their guidance and support in my inaugural year as CEO. While I could never have predicted the events of 2019/20, I could confidently predict the resolute and resilient response by our staff to ensure the continued safety of commercial shipping in NSW. I extend a resounding thank you to my team for their tireless commitment and ongoing support through the toughest of circumstances. Your efforts have not gone unnoticed, and I could not be more proud of the team around me.

Philip Holliday Chief Executive Officer and Director Port Authority of New South Wales 30 September 2020

Chief Executive Officer’s report • 27 28 Port Authority of New South Wales Annual Report 2019/20 positions. recruitment process isunderway to fill the three remaining Board and Gerard Sutton on31December 2019. At thetimeofwriting, a and theexpiry oftheterms ofappointmentPenny Bingham-Hall following theappointmentofPhilipHolliday asCEOandDirector, Over thepast 12months,thecomposition oftheBoard haschanged 7 Board ofDirectors Kembla portcorporations. following theamalgamation ofthe Sydney, Newcastle andPort became ChiefOperating Officer andHarbourMaster, Sydney, General Manager, Operations andHarbourMaster. In2014, he Philip joinedSydney Ports Corporation in May 2011 asExecutive Botany, Newcastle Harbour, Port Kembla, Eden andYamba. of commercial trade andcruiseshippinginSydney Harbour, Port in managingthenavigation, securityandoperational safety needs Appointed CEOon2December 2019, PhilipleadsPort Authority Chief Executive Officer andDirector B.Sc. (Hons) University ofTeesside, GAICD PHILIP HOLLIDAY and New Zealand. Robert isamemberoftheChartered Accountants Australia an Indianbank. company, andadirector ofNorthEast Small Finance BankLimited, Chair ofDiaVikas Limited, CapitalPvt anIndianinvestment Robert istheChairofBaptistCare NSW &ACT andwas formerly Director ofPatrick Corporation, a positionheheldfor 14years. Opportunity International Australia andbefore that hewas Finance programs. Priorto that, hewas theChiefExecutive Officer of their lives through microfinance and community development provides peoplelivinginpoverty withtheopportunityto transform Opportunity International, anot-for-profit organisation that Until August 2020, Robert was GlobalExecutive Director with appointed ChairoftheBoard from 1August 2018. a Director ofSydney Ports Corporation from 2012. Robert was of Port Authority ofNew SouthWales. Hehadpreviously been Port Corporations inJuly2014, Robert DunnbecameaDirector With theamalgamation oftheSydney, Newcastle andPort Kembla Chair, Nominations Committee Member, Remuneration andHumanResources Committee Member, Audit andRiskCommittee Chair B.A. (Hons) Macquarie University, GAICD ROBERT DUNN Philip has spent his entire career in the shipping and ports industries, starting as a 16-year-old cadet when he joined Ropner Shipping Services and later moving to Souter Shipping where he gained his Class 1 (FGN) Masters certificate. In 1998, Philip joined the UK’s largest port operator, Associated British Ports (ABP) in a port operations role. Following a number of roles within ABP he became Harbour Master for the ABP Port of Southampton and Marine Advisor for the group’s 21 UK ports. Philip is a former Chair of the Ports Australia’s Port Operations Working Group and took a lead role in the development of the Australian Port Marine Safety Management Guidelines.

ZORANA BULL A (Hons) Oxford, MA (Eng. Econ. & Mgmt) University of Oxford, FAICD Director Chair, People and Culture Committee Member, Audit and Risk Committee Member, Nominations Committee

Zorana Bull was appointed as a Director of Port Authority of New South Wales in March 2016. Zorana is a Non-Executive Director of AirRoad Pty Ltd, HealthShare NSW and Guide Dogs NSW/ACT. She is also the Managing Director of strategy and management consulting firm Altura Partners Pty Ltd. She was previously a Partner with international consulting firm PA Consulting Group, with postings in Europe and Asia-Pacific, and Chief Operating Officer of the Australian business. During this time, she specialised in strategy development, restructuring and performance turnaround. Prior board appointments have included Moorebank Intermodal Company Ltd, the Australian Centre for Eye Health and Fancy Engineering.

Board of Directors • 29 30 Port Authority of New South Wales Annual Report 2019/20 and the Global Foundation. Forum, and a Director ofInfrastructure Partnerships Australia Services Australia, DeputyChairoftheTourism andTransport and community organisations includingChairofAdvocacy a director ofAustralia Post andheldpositionswithindustry from thecompany at theendof2009. Shehaspreviously been with Leighton Holdings(now CIMIC Group) priorto retiring Penny spentmore than20years inavariety ofexecutive roles Council. SheisamemberofChiefExecutive Women. Chair oftheNSW Ministerial Freight andLogistics Advisory Crescent Foundation, Supply Nation andwas recently appointed Metals Group Ltd, theTaronga Conservation SocietyAustralia, Group), Macquarie SpecialisedAsset Management,Fortescue Management Limited (responsible entityfor theDexus Property Penny isalsoaDirector ofBlueScope Steel, Dexus Funds of Sydney Ports Corporation from 2012. Authority ofNew SouthWales. Shehadpreviously beenaDirector Port Corporations inJuly2014, Penny becameaDirector ofPort With theamalgamation oftheSydney, Newcastle andPort Kembla 2014 to December 2019. Penny Bingham-Hallwas aDirector ofPort Authority from July Member, Nominations Committee Member, Audit andRiskCommittee Chair, People andCulture Committee Director B.A. (Ind.Des) University ofTechnology Sydney, FAICD, SF(Fin.) PENNY BINGHAM-HALL Infrastructure Fund,MacarthurWater and Yan Yean Water. Committee. PriorBoard appointmentsincludeTransfield Services of University of New England SmartRegional Incubator Advisory Matthew isaDirector ofExpressway Spares andisChair and Deutsche Bankin Sydney, Johannesburg andLondon. (now Broadspectrum), Leighton Group inAustralia andAsia, senior executive andleadershippositionswithTransfield Services electricity transmission business, upto 2018. Matthew hasheld held thepositionofChiefFinancialOfficer at TransGrid, the NSW and majorproject delivery. Priorto joiningtheBoard, Matthew Matthew hasspentover 20years involved ininfrastructure, utilities of New South Wales in February 2019. Matthew was appointed asaDirector of Port Authority Member, Nominations Committee Chair, Audit andRiskCommittee Director University ofNew SouthWales, GAICD B Ag Ec (HonsI)University ofNew England,MComm (Finance) MATTHEW IRWIN GRANT GILFILLAN B.A.Sc. University of South Australia, MAICD Chief Executive Officer Director

Grant Gilfillan was a Director of Port Authority from July 2014 to September 2019. With the amalgamation of Sydney, Newcastle and Port Kembla port corporations in July 2014, Grant Gilfillan became Chief Executive Officer and a Director of Port Authority of New South Wales. He had previously been the Chief Executive Officer and Director of Sydney Ports Corporation (from 2008) and Newcastle Port Corporation (from 2013). Before joining Sydney Ports Corporation in 2008, Grant worked in Africa, the Middle East and Europe (Romania) as a Senior Vice President, Managing Director and General Manager for DP World. Prior to this he served as Director of Operations for P&O Ports, Australia and New Zealand and as Managing Director of CSX World Terminals in Australia. Prior to that Grant was a mining engineer and mine manager in the NSW Hunter Valley and the north-west of Western Australia. Grant has more recently held positions as President of the International Association of Ports and Harbours, Chair of Ports Australia and a Director on the Board of Lyttelton Port Company in Christchurch, New Zealand. Grant is currently the Chair of the Australian Cruise Association.

GERARD SUTTON AO B.E. (Hons) University of New South Wales, M.Eng.Sc. University of New South Wales, PhD Catholic University of America Director Member, Remuneration and Human Resources Committee Member, Nominations Committee

Professor Gerard Sutton was a Director of Port Authority from July 2019 to December 2019. With the amalgamation of Sydney, Newcastle and Port Kembla port corporations in July 2014, Gerard became a Director of Port Authority of New South Wales. He had previously been a Director of Port Kembla Port Corporation from 2012. Gerard is a former Vice-Chancellor of the University of Wollongong and a former Chair of Universities Australia. Gerard is currently the Chair of the AARNet Board (the Australian universities’ telecommunications company), and a Director of Think Pty Ltd and Illawarra Shoalhaven Local Health District Board. Gerard was previously a director of the Board of Regional Development Australia Illawarra and a member of Illawarra TAFE Institute Advisory Council.

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Board of Directors • 31 32 Port Authority of New South Wales Annual Report 2019/20 of positions at anexecutive level. as the organisation’s head.The new appointmentwas acatalyst for arestructure new Chief Executive Officer on 2 December 2019, replacing Grant Gilfillan after 12 years Robert Dunnannounced theappointmentofPhilipHolliday as theorganisation’s 8 Group Executive, Development Assets and Executive team Group General Counsel Brad was appointed on2March 2020. • • • Brad Milner Chief Executive Officer andDirector Philip Holliday Projects andInfrastructure Management Asset Group Executive, Assets andDevelopment Stakeholder Relations Group Executive, Strategy and Ocer andDirector Chief Operating Chief Executive Ocer and Commercial Chief Customer Ocer Chief Information Ocer Chief Financial Ocer Amy Beaumont • Group General Counsel • Legal • Sustainability and Environment • People and Culture • Work, Health and Safety Amy was appointed on 2 March 2020.

Kelly Mico • Group Executive, Strategy and Stakeholder Relations (Acting) • Internal and external communications • Strategic business planning • Venue management

Emma Fensom • Chief Operating Officer (Acting) • Marine operations • Pilotage • Regional ports and administration

John Finch commenced this role on 9 July 2020 and Emma has resumed her role as Head of Operations – Newcastle and North Coast.

John McKenna • Chief Customer and Commercial Officer • Cruise • Property and Commercial John was appointed on 16 March 2020.

Executive team • 33 34 Port Authority of New South Wales Annual Report 2019/20 was 1 November 2019. Ralph Keats, Executive General ManagerHRandWHS,last day with Port Authority last day withPort Authority was 28February 2020. Edward Martin,Executive General ManagerCommunications andExternal Relations, Also onPort Authority’s Executive Team duringthe2019/2020 financial year were: • • • VoutosGarry • • • • Lawrence Ho ye security Cyber IT strategy andoperations Chief Information Officer oprt services Corporate secretary Company Corporate Planningandreporting Chief FinancialOfficer 9 Vision, objectives and values

Hornby Lighthouse: guiding ships into Sydney Harbour since 1858

Our vision Our objectives We are internationally recognised leaders • A reputation as the best-managed in the provision of efficient, integrated and best-governed state owned and innovative port marine services. corporation in New South Wales. • A robust and sustainable port business. Our purpose • A culture which strives for excellence. To provide safe, efficient, sustainable, world-class port and marine services Our values whilst retaining and optimising our • We will be honest, open, caring port assets to deliver the financial and and accountable. strategic goals of the NSW Government. • We will act with courage and integrity. • We will strive for excellence in all that we do.

Vision, objectives and values • 35 36 Port Authority of New South Wales Annual Report 2019/20 the business forward. and five‑ Chief Executive Officer and refreshed Executive was to develop a new vision Commencing inNovember 2019, oneofthefirst priorities for the newly appointed New Strategic Plan initiatives for thenext 12 months. Port Authority willrelease theplan in August 2020 andbeginimplementingitsstrategic Authority’s business. It hasbeencreated inconsultation and collaboration withpeoplefrom across Port The planalsoincludesasetofnew strategic goalsandorgansational values.

One Team, OneCulture, Sustainable Port Assets and viability. for future growth Develop ourlandassets of our assets and development in the management Embed sustainability in our ports and efficient assets Provide safe, reliable focused service culture. Progress ourcustomer leadership Exhibit strong personal and engagedworkforce Develop ourprofessional health andsafety Support employee approach Foster aOneTeam One Port Authority Optimised and year strategic plan.The planidentifiesfive new strategic priorities toguide

Commitment to Customer

Community Engagement experience Enhance ourcustomer proposition customer value Maintain adefined our port communities. relationships with Work to buildstronger our stakeholders Collaborate with for our customers and advocate Partner with the Port Authority brand Develop andgrow and revenues. relationships Grow customer Invest inservice delivery Stakeholder and Service Delivery

measurement of performance through Create visibility and stakeholder needs aligned to customer accountabilities Embed clear continuous improvement. delivery through Optimise service Operational Excellence 10 Our people

A Port Authority port officer looks out over Port Botany

Port Authority employs 358 staff across the state. Our people are a diverse team of specialists who work together to provide safe, efficient and sustainable world-class port and marine services in Sydney, Port Botany, Port Kembla, Newcastle, Eden and Yamba.

We are Harbour Masters and Marine Pilots operating on the open water; we are security and navigation experts keeping ships safe; we are project planners building for the future and we are the corporate and IT teams who bring it all together.

10.1 Work, Health hazards reported decreased from 207 in 2018/19 to 149 in 2019/20. Whilst there and Safety were four Lost Time Injuries and three Medical Treatment Injuries, Port Authority Port Authority strives for everyone to continues to strive for zero. The four go home safely every day. Port Kembla, Lost Time Injuries were all thoroughly Yamba and Eden had zero injuries or investigated, actions implemented significant incidents in 2019/20, while and the lessons learnt shared across Sydney and Newcastle had a combined Port Authority. total of seven recordable injuries. All leading performance indicator metrics were successfully met across all ports, including near-miss reporting 10.2 Leadership and safety meetings. and coaching The total number of incidents and A key aspect of Port Authority’s

Our people • 37 38 Port Authority of New South Wales Annual Report 2019/20 mrvn diversity Improving 10.3 employees engagingquarterly. these goals,withmanagersand Coaching for Success program supports skills inleadingothers.Port Authority’s coaching ofemployees to develop organisational goalsissupportand recruitment are being undertaken Succession planningandtargeted to provide services into thefuture. implications for thebusiness’s ability This agingoperations workforce has (45 percent ofstaff are over 50 years). Port Authority hasanagingworkforce as Indigenous. of Port Authority’s workforce identified 23 per cent asfemale. Onepercent 77 percent identifiedasmaleand Port Authority has358 staff, ofwhom to diversity, includingequalgenderpay. monitoring appropriate factors relating diversity initiatives andto measuringand which committed to developing annual Employee Diversity andInclusionPolicy In 2018, Port Authority launchedits diversity initswork environment. recognising, promoting, andsupporting Port Authority iscommitted to Members ofPort Authority’s hydrographic survey team at work onSydney Harbour and inclusion and NAIDOC Week. New Year celebrations, Harmony Day and activities eachyear, suchasLunar participation inaseriesofevents and cultural awareness through Port Authority supportsdiversity is a key organisational goal. with asupportive policy framework Building acaring,more inclusive culture and implemented. diverse backgrounds willbeidentified programs for females andpeoplefrom secondment, coaching andmentoring including capabilitydevelopment, Learning anddevelopment opportunities, and actiontaken to improve. equality strategies shouldbe focused a clear indication onwhere gender management positions.This provides positions and41 percent insenior female inprofessional andtechnical female), whencompared to 51percent and amongmarinepilots(6percent in Marine Operations (11percent female) A significantgenderimbalance exists to address theserisks. Tribal Warrior organisation. After discussions with each Aboriginal Corporation of the applicants, Port Authority filled two Sydney positions, and one Newcastle After months of industry discussions, position. Port Kembla will be starting up Port Authority was pleased to launch its trainee recruitment process shortly. its first Indigenous Female Maritime The Marine Operations teams facilitated Traineeship Program in March 2020. Cultural Awareness Training in early Port Authority is sponsoring four trainees March to prepare employees for through its program partner, Tribal this program ahead of the intended Warrior, to achieve qualifications as either commencement of the Sydney trainees Master <24m Near Coastal (Restricted and the Newcastle trainee on 30 March to Sheltered Waters) or Marine Engine 2020. Unfortunately, the impacts of Driver Class 3 qualification over COVID-19 delayed the original plans a two-year period. During this period, to have the women onsite to get Tribal Warrior will also be assisting practical experience and apply what in training these women to receive their they had learned at TAFE. Nonetheless Coxswain ticket. as a demonstration of Port Authority’s Port Authority also started a recruitment commitment to this important diversity process for trainees for selection in its initiative, the program commenced Indigenous Female Maritime Traineeship. irrespective, with the participants On 31 January 2020, a selection day instead building their knowledge base for the Indigenous Female Maritime through TAFE training. The practical Traineeship was held. Representatives aspect of their training on location and from Port Authority, Manly Fast Ferry engaging and learning within the Marine and Transport for NSW (Maritime Operations teams will commence as soon Division) met with 15 candidates at as practicable once relevant COVID-19 Moores Wharf to describe the maritime safety measures are lifted. industry and Port Authority as an

Port Authority and Tribal Warrior launch the Indigenous Female Maritime Traineeship

Our people • 39 40 Port Authority of New South Wales Annual Report 2019/20 Shipping onRTM Weipa. offered anassignment withRio Tinto time withtheCSIRO, thecadetwas InvestigatorRV . After completing his to theCSIRO’s marineresearch vessel, recruitment process, andwas appointed in November 2019 after arigorous His replacement joinedPort Authority accepted arole withRoyal Caribbean. Port Authority on18July2019, having through thisprogram resigned from The first cadetwho was sponsored RV Investigator (CSIRO), to nameafew. Inscription (MMAOffshore Limited) and Malta Limited), MMACoral andMMA Tarago (Wilhelmsen LinesShipowning ICS Silver Lining(INCO Ltd), ShipsPty and placed cadetsonshipssuchas, mentors have successfully negotiated weeks ononeship. Port Authority Cadets spendbetween eightandsixteen supported by aPort Authority mentor. placements onavariety ofships, merchant vessels to offer cadets Port Authority negotiated withseveral a professional seafarer qualification. This isthefirst step towards attaining become aqualifiedDeck Watchkeeper. (AMC) orHunter TAFE andstudy to attend theAustralian Maritime College Safety Authority (AMSA) before they required by theAustralian Maritime students to gainthe18monthssea-time cadetship. The sponsorshipenables Pre‑Sea qualification inatwo-year of AppliedScience (NauticalScience) who have completed theirBachelor in September 2018 to train students The DeckCadetProgram was launched Deck Cadetprogram will commence shortly. in this field. Recruitment ofanothercadet companies to give thecadetmore time his mentors to negotiate withoilandgas preferred industries, whichthenenabled has helpedthecadetidentifyhis of commercial vessels. The sponsorship a qualifieddeck watchkeeper on a variety sea‑time experience required to become July 2020, having gainedthe18months will complete thecadetshipprogram in The first Port Authority deckcadet Deck CadetProgram One ofthefirst cadets to join Port Authority’s 10.4 Suite of new policies Disciplinary Policy During the year, a suite of People This policy seeks to establish a consistent and Culture policies were introduced approach to addressing unsatisfactory to standardise and improve work performance and/or conduct, employee conditions. by ensuring appropriate counselling takes place to reinforce expected performance Family and Domestic or conduct standards. The policy also establishes guiding principles for when Violence Leave Policy formal warnings may be issued and All Port Authority employees discussed, and provides for disciplinary experiencing family and domestic action where performance or conduct violence are provided with up to 10 days does not improve. paid family and domestic violence leave per calendar year. This leave is in addition to all other leave entitlements 10.5 The year ahead (including annual leave, personal and compassionate leave). In 2020/21, focus will remain on continuing to build a diverse workforce Grievance Policy and developing, reviewing and harmonising people-focused policies This policy sets up a framework to ensure across Port Authority. Consideration that grievances are handled in a fair is also being given to developing and transparent manner, will be treated a rewards and recognition program confidentially and resolved as quickly that encourages cooperation as possible. It also provides that both and achievement. the complainant and the person against whom a complaint is made will have a voice in a grievance investigation.

Our people • 41 42 Port Authority of New South Wales Annual Report 2019/20 coordination withexternal stakeholders. policies andcommunications, and continuity measures, peoplerelated focus was onsafety andbusiness The pandemic-specificBCP’s immediate • • • to work withkey stakeholders to: for ‘loss ofkey theCMTdecided staff’, which identifiedpandemicasacause of thedisruption-related risksintheBCP, considered allrelevant factors. Onreview point to ensure theenhanced BCP were usedasachecklist andreference response. Port Authority’s Strategic Risks established to coordinate theCOVID-19 A CrisisManagementTeam (CMT) was of thesameon11March 2020. World HealthOrganization’s declaration on 27 February 2020, andaheadofthe declaration ofCOVID-19 asapandemic following theAustralian Government’s Continuity Plan(BCP)on6March 2020, Port Authority invoked itsBusiness Developing 11.1 as essential undertheEssential Services Act 1988. on the basis that themovement offreight andfuelis categorised determined that its MarineOperations carriesout‘essential services’, impacting every nation, business andindividual.Port Authority The COVID-19 pandemicisanunprecedented world event 11 create apandemic-specificBCP. impact assessment to prepare aCOVID-19 business run workshops witheachdepartment risk assessment prepare aCOVID-19 specific Continuity Plan Continuity Plan specific Business a COVID-19 pandemic response Evolution oftheCOVID-19 2020/21. impacts willremain inplace throughout implemented to address COVID-19 anticipates that many measures Government directives, Port Authority In accordance withAustralian andNSW of allemployees. so as to ensure thesafety andwellbeing and returning to business asusual implementing theRecovery Strategy taking amore cautiousapproach to response, theCMTandExecutive are be beneficialbeyond the COVID-19 that somecontrols andchangeswill the COVID-19 periodandacknowledging Port Authority hasperformed throughout given how effectively andefficiently COVID-19 related measures. However, its staged approach to rolling back developing aRecovery Strategy, outlining In June2020, Port Authority commenced extended to Iran, Republic ofKorea for allshipsarrivingfrom China(later introduced a14-day quarantine period Saturday 1February 2020, Port Authority pilots. Aspartofthesemeasures, on to ensure thesafety ofitsmarine swiftly introduced COVID-19 measures guidelines/directions, Port Authority Acting inadvance ofthenational on suchvessels. is the first pointof contact withthecrew by a Port Authority marinepilot,who (international arrivals) are boarded Vessels arrivinginto NSW from overseas of international ships Restrictions to thearrival and Italy). This meant Port Authority only Strict protocols for the operational provided pilotage services to ships that workforce around personal protective had transited from these countries upon equipment (PPE), spatial distancing, completion of a 14-day quarantine period. personal hygiene and cleaning However there was minimal disruption protocols were quickly introduced to customers as a result of this measure to the workplace. because for most countries the steaming Offices were closed to external visitors time to arrive at the NSW coast is greater and office-based staff started working than the 14-day quarantine period. from home on alternate days from Port Authority also required all arriving 13 March 2020. This provided an ships to answer screening questions, opportunity to test remote IT equipment including providing details of their last and accessibility to systems. The IT team five ports of call and confirmation that worked to ensure all staff were well no COVID-19 symptomatic passengers equipped, and had access to systems or crew were on board. This screening and training to effectively work remotely enabled the ships to be risk assessed from each other. prior to a marine pilot being permitted By mid-March, all operations teams to board the vessel. across the business had also adopted Where COVID-19 cases were suspected a ‘split-shift’ system, aimed at ensuring or confirmed, Port Authority risk- where possible that operational teams assessed the specific situation and were physically and geographically obtained further advice from the separated. Shift workers continued respective government agencies to work their usual shift system; however prior to boarding the vessel where measures were implemented to minimise appropriate. This included deferring the need for face-to-face handovers pilotage until such time that Port and close physical contact. Authority was satisfied that such risk On 25 March, in compliance with national could be managed. and state public health orders and This process was over and above the to maintain a safer working environment usual screening process conducted by for all Port Authority’s employees, all NSW Health, the Australian Border Force office staff not required to be physically and other regulatory agencies. in the workplace were directed to work from home until further notice. Australian Government agencies also enacted strict requirements for maritime Given marine pilots are the first point crews arriving in Australian ports and of contact for international ships, Port Authority followed their advice while all pilots were issued PPE (masks, assisting the Australian Border Force disposable gloves, eye protection, and biosecurity teams in their duties. disposable body suits) and were given instructions to ensure their correct usage. Protecting our people The CMT developed a procedure for Every action taken by Port Authority issuing and using PPE to protect our throughout the pandemic period people against COVID-19 transmission has sought to ensure the safety risks. To provide additional external PPE of employees as its principle objective, expertise to our teams, Port Authority while maintaining service levels held a workshop with an infection for commercial shipping in NSW. prevention specialist from Infection

Evolution of the COVID-19 pandemic response • 43 44 Port Authority of New South Wales Annual Report 2019/20 the future. to work from homeinsomeform into of staff expressed adesire to continue approach adopted by staff, 94per cent home andtheefficiency and professional nature ofthetransition to working from Not surprisingly, dueto theseamless satisfied inthehomeenvironment. employees’ working needswere being to understand whetherPort Authority A staff ‘pulse’survey inAprilsought special leave. provided withupto 20days paid to self-isolate dueto COVID-19 were Employees unableto work ordirected wellbeing, withsupporttools available. and maintainasenseofpsychological strategies to buildpersonalresilience and proven preventative psychology were released inApril, withpractical to counselling services. Two webinars influenza shotsandensuringaccess included providing vouchers for free Other initiatives to care for ourpeople cleaned inbetween pilotagemovements. on pilotboats, withthosevessels being Only onepilotat atimewould beallowed from thebroader workforce ingeneral. remain separated from eachotherand The pilot workforce were instructed to crew contact, andsanitise equipment. sanitised pathways to thebridge, limit issued to shipsto prepare external Pre-pilot arrival instructions were a recording was available onDockside. join asession inpersonorviaSkype and Port Kembla locations. Employees could Port Authority’s Sydney, Newcastle and Prevention Australia withstaff across in a multi-agency taskforce. provided advice andreceived support Management Team, Port Authority also As amemberofTransport’s Incident between 12March and30June 2020. eight stakeholder updates were issued A totalupdates of28‘all and staff’ on mobilephones. ability to communicate withstaff viaSMS and Port Authority alsointroduced the disseminated emailupdates, via‘all staff’ Important andtime-criticalupdates were which was progressively updated. included onthededicated Docksidesite, held virtually. AnFAQ section was also employees could askquestions were CEO updates andQ&Asessions where • • • • to COVID-19. This provided: was established for information relating Port Authority’s intranet, Dockside, a centralised information hubon informed oflatest developments, To ensure allemployees were kept the event aparticularscenario arises. planning –that is,what to doin PPE application guidelinesandscenario Operation staff members,including information specific for Marine Health andtheAustralian Border Force Australian Government Departmentof authorities, includingNSW Health, Australian andNSW Government the latest advice from relevant stakeholder andcustomer updates staff updates 11.2 Impacts on With initial restrictions in place involving arrivals from China, the cruise lines had the cruise industry redeployed many of their Asian‑based vessels to Australian waters, increasing Few international industries, except the number of cruise ship visits perhaps airlines, have been so to NSW during February and March significantly and directly impacted 2020. Between mid-March and early by the COVID-19 pandemic as the April, Sydney and Port Kembla hosted cruise industry. cruise ships that had discharged their Following a voluntary suspension of passengers, but which still had up cruise activity by the cruise lines, on 15 to 1000 crew on board, and which March 2020, the Australian Government needed to reprovision and refuel in implemented a 30-day restriction on the order to depart for an international arrivals of any cruise ship that had left port or anchorage to wait out the a foreign port, with the exception of: coronavirus cruise shutdown. Relating to these vessels, Port Authority assisted • Australian-flagged vessels cruise lines to find alternate berths/ • international cruise ships en route, ports, allowed cruise ships to refuel and having departed their last overseas load necessary stores, and worked with port and being destined for Australia the private port operators in Port Kembla • Australian cruise vessels (domestic and Newcastle to identify berth and cruise ships) operating within the anchorage options. Australian Exclusive Economic Zone Port Authority also worked with Mission • round-trip cruises that were already to Seamen and community volunteer in progress and currently returning groups to provide care packages and to Australia. support to seamen and crew remaining on these ships. On 27 March 2020, the Australian Border Force banned all cruise vessels from The long-term impact of the COVID-19 entering Australian waters. pandemic on the international cruise industry is undetermined – however On 20 May 2020, the Minister for Health Port Authority anticipates cruising extended restrictions to 17 September will likely return in incremental stages, 2020, under the Biosecurity (Human commencing with restricted domestic Biosecurity Emergency) (Human cruises, followed by interstate cruises Coronavirus with Pandemic Potential) and Pacific Island / New Zealand returns. (Emergency Requirements for Cruise Ships) Determination 2020 regarding In Port of Eden, four cruise ship visits the operation of cruise ships in Australia. were cancelled in January and February This restriction prevents any ship capable 2020 due to bushfires and a further 11 of carrying more than 100 passengers cruise ship visits were cancelled from from operating cruises in Australia, March to May due to the COVID-19 bans. including direct arrivals and round-trip cruises. The announcement left many overseas vessels that home port in Sydney for the cruise season stranded.

Evolution of the COVID-19 pandemic response • 45 46 Port Authority of New South Wales Annual Report 2019/20 originating from vessels. and managementofany healthrisks may ultimately improve theidentification recommendations oftheInquirythat forward to theimplementation ofany ports ofNSW. Port Authority looks berthing ofcommercial vessels inthe is to ensure thesafe navigation and its conduct, given that itsprimaryrole anticipate adverse findings concerning to bereleased, Port Authority doesnot the finalfindingsofInquiry are yet Special Commission ofInquiry. While the police investigation andwith the Port Authority cooperated fullywith Government inAugust 2020. final report to bedelivered to theNSW ongoing on30June2020, withthe commenced on15April2020 andwas of Inquiryledby Bret Walker SCthat investigation andaSpecialCommission Princess was thesubjectofaNSW Police New Zealand. The arrival oftheRuby Passenger Terminal after acruiseto Ruby Princess docked at theOverseas their passengers. On19March 2020, the route to Australia to dockanddisembark to allow four shipswhichwere already en Government exemptions were granted from Australia from 15March 2020, While foreign cruiseshipswere banned Ruby Princess lower economic activity. to declining consumer demandand and coal export trades inresponse motor vehicle, construction material downturn ofthe container, bulkliquids, activity from 15March 2020 andthe they relate to theinterruption ofcruise in 2019/20 were significant.Most notably, on Port Authority’s financial results and associated economic downturn The impactsoftheCOVID-19 pandemic impacts Financial 11.3 of COVID-19 compared withabudgetof$36.4million. (EBITDA) for theyear were $36.8 million taxes, depreciation, andamortisation for 2019/20. Earnings before interest, marginally exceeding itsEBITDA target of COVID-19 resulted inPort Authority performance to target before theimpact measures andotherwisefavourable cost deferrals. The combination ofthese offsets inthe form of cost savings or allowed Port Authority to make some own cost-control measures, have also stimulus, combined withPort Authority’s Business interruptions andgovernment its financialposition. ban cameinto place, whichalsoassisted for theperiodbefore theGovernment business-as-usual bookingcancellations cancellation charges were collected for during theAustralian Government’s ban, cruise bookingcancellation charges While Port Authority didnotimpose Authority’s business interruption claim. part oftheinsurer’s assessment ofPort million was received andrecognised as In June 2020, aninitialpayment of$5.0 as pertheexisting bookingschedule. revenues lost for theperiodofban, Passenger Site Occupation charge Pilotage, Navigation Services andPer interruption insurance for cruise-related enabled Port Authority to claimbusiness The Australian Government’s ban cancellation policy. interruption insurance andcruisebooking key strategic riskcontrols, beingbusiness This was offset by Port Authority’s two to budgetfor theyear was $13.3million. The total unfavourable income variance cruise season(December to April). occurred towards theendofpeak Australia from 15March 2020. This Government’s banoncruiseshipsto commencement oftheAustralian have beenmore severe butfor the The impactto cruiserevenue would 11.4 Trade impacts the resumption of manufacturing and logistics operations throughout of COVID-19 China in March, Port Authority has since seen a return to a more regular patterns During the second half of 2019/20 the of container vessel calls at Port Botany. NSW economy experienced a severe downturn as a result of COVID-19. There Bulk liquids vessel visits were also down was a consequent steep downturn in due to the impact of COVID-19, which container trade, bulk liquids imports, has limited travel, causing significant motor vehicle imports and (to a lesser reductions in jet and automotive extent) construction material imports. fuel usage. The numbers of visiting container vessels Construction material imports to Sydney were down due to a number of cancelled have decreased with a reduction in sailings in the first four months of 2020, cement and gypsum due to the general as a result of COVID-19 and a number of downturn in the building industry, which consortia changes that occurred in late started in late 2019. 2019. In late February into March 2020, Car sales have also been down in NSW there was a decline in import container for the past 12 months, which has volumes caused by the outbreak of impacted Port Kembla car carrier COVID-19 in China and the consequent vessel visits. This is due to the general restriction measures taken. This extended downturn of the economy and the closure of Chinese factories and a reduction in consumer discretionary logistics chains after the Lunar New Year spending The sale methodology in early February 2020. of supply of motor vehicles has also Given China is an important trading shifted, with dealers now typically partner and is responsible for advising importers what they need approximately 40 per cent of container to suit immediate demand, whereas imports and 20 per cent of container in the past manufacturers would supply export volumes in NSW, Port Authority based on an agreed monthly volume. experienced consequent disruptions Coal volumes in both Port Kembla to usual trade flows. However, with and Newcastle performed well overall.

Port Botany: one of Australia’s largest container ports

Evolution of the COVID-19 pandemic response • 47 48 Port Authority of New South Wales Annual Report 2019/20 12 Harbour Bridgeat Rozelle. White Bay CruiseTerminal, west ofthe Passenger Terminal at Circular Quay and passenger terminals, beingtheOverseas Australia withtwo dedicated cruise beautiful ports.Itistheonlyportin gateway andoneoftheworld’s most Sydney HarbourisAustralia’s cruise 12.2 including petroleum andnatural gas products andbulkliquidimports, specialises intrade inmanufactured Australia’s largest container portwhich located inBotany Bay, Sydney. Itis Port Botany isadeep-water seaport 12.1 A tankerPort Authority marinepilotguidesavessel navigating thoughSydney safely outofGore Bay, Harbour Sydney Harbour Sydney Harbour Port Botany and Port Botany Sydney Harbour various otherworking harbouractivities. naval and specialpurposeshipping,and infrastructure andspecialevents staging, refuelling operations, marineconstruction, visits includebunkering andvessel major commodities. The trade vessel number ofvessels that donottrade in thiscapacityisvisited by alarge maritime functionsandservices, and as aworking portfor awidevariety of Importantly, Sydney Harbouralsoserves also facilitated through White Bay. refined oilproducts. Tallow exports are of cement, gypsum,salt,sugarand Island andWhite Bay receive imports and the common userberthsat Glebe their private facilities at Gore Cove, is imported by Viva Energy through of commercial trades. Refined oil Sydney Harbouralsofacilitates a range 12.3 Trade vessel visits The table below presents a monthly breakdown of trade vessel visits for 2019/20 across Port Botany and Sydney Harbour.

Trade vessel visits to Sydney Harbour and Port Botany, 2019/20

TOTAL TOTAL 2019/ 2018/ JULY AUG. SEPT. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUNE 20 19 Port Botany/Kurnell 137 137 137 143 131 133 129 106 111 123 125 119 1,531 1,660 Sydney Harbour/ 57 53 48 60 76 82 76 50 61 29 30 32 654 807 Gore Cove* TOTAL 194 190 185 203 207 215 205 156 172 152 155 151 2,185 2,467 Note: Includes visits at both Port Authority’s berths and privately owned terminals. * Includes commercial and service provider vessels (such as bunker vessels ICS Reliance).

During 2019/20, container vessel visits 12.4 Marine Operations to Port Botany were lower than in 2018/19, due to a number of cancelled Marine Operations provides services sailings in the first four months of 2020 to the maritime community in Port resulting from the COVID-19 pandemic Botany and Sydney Harbour and meet and a number of container consortia the division’s obligations as mandated changes that occurred in late 2019. by the PSOL. Two consortia in the East Asia container These services and obligations include: trade increased ship size, which resulted in fewer vessel calls (but larger gross • measuring and providing information tonnage of the ships that visited); and on channel and berth box depths one large European consortium merged in different areas of the port with another Europe/Asia service, again • providing notifications regarding with larger vessels which reduced dangerous goods, bunkering (refuelling the overall number of vessel calls. vessels) and hot work (any work Bulk liquids vessel visits were higher that could result in fire or any works in the first half of the year but reduced in a combustible environment) in the second half due to the COVID-19 • maintaining navigation aids pandemic limiting travel, which caused significant reductions in the demand • ensuring emergency response for jet and automotive fuel. to incidents including: • pollution Construction material imports to Sydney decreased, with a reduction in cement • fire due to the general downturn in the • ship assists building industry which started at the end of 2019.

Sydney Harbour and Port Botany • 49 50 Port Authority of New South Wales Annual Report 2019/20 (See Section3.2for furtherdetails.) • • • the accreditation oftheregulating body Botany. Itmaintainsthisfunctionunder of vessels intheportsofSydney and the safe operation andmovement navigation. Itprovides services to facilitate The VTS operates 24/7 to supportsafe and Port Botany – Sydney Harbour Vessel Traffic Services Fire andRescue NSW joinPort Authority to discuss emergency response procedures Services (VTS). through theSydney Vessel Traffic delivering portcommunications landside assets encompassing Port Authority’s patrols andpatrols onland including regular on-water security providing portsecurityservices of local knowledge approval andissuance ofcertificates pilotage, includingtheadministration, and providing exemptions from delivering pilotageservices • • • • In 2019/20 Sydney VTS: commercial andrecreational shipping. providing asafe interface between in 2019, enablingtheVTS to continue intermediate regulatory compliance audit Sydney VTS successfully completed an Lighthouse Authorities (IALA)standards. with theInternational Associations of to thehighest standards inaccordance equipment, withalloperators trained AMSA, usingstate-of-the-art navigational of theVTS network. improving theefficiency andcapability to the Sydney VTS emergency centre, undertook significant upgrades and Port Botany emergencies withinSydney Harbour coordinated responses to 39 medical and Port Botany emergencies withinSydney Harbour coordinated responses to 26 and Port Botany of 4874 vessels withinSydney Harbour facilitated safe andefficient transit 12.5 Emergency Exercises response Port Authority held a number of emergency exercises with stakeholders Operations to test preparedness and response to incidents, which is a requirement Port Authority’s emergency response of the PSOL. These training exercises teams are available 24/7 to respond are designed to support multi-agency to any incident in the ports of Sydney responses and increase collaboration and Botany and to coastal limits. between agencies. Marine Operations has Every year, Port Authority’s highly continued to maintain strong relationships trained emergency response teams with Fire and Rescue NSW, NSW Police respond to hundreds of reports of marine Force, Environmental Protection Agency, pollution, and undertake thousands and Aviation Fire and Rescue, continuing of safety audits of vessels transferring to familiarise the crews from these bulk oil, gas and chemicals. agencies with Marine Operations vessels, The teams have several assets and to carry out inter-agency drills. to support at fires, pollution, booming Two of these exercises are described and ship assists. below. Some of the incidents that were responded to in 2019/20 include: Caltex two-phase exercise October 2019 • 70 booming operations Botany-based crew participated • 133 pollution incidents in a desktop and equipment deployment • five firefighting operations exercise in Kurnell with Caltex simulating a failure in a Marine Loading Arm • 43 emergency towage while discharging unleaded petrol, and vessel assists. and then a fire in the accommodation The 2019/20 financial year saw Marine cell of the ship, requiring the services Operations teams in Sydney Harbour of Port Authority’s fire tug and a request and Port Botany respond to numerous for support from Fire and Rescue NSW spills and fires, including fires at Luna Park (FRNSW) and a commercial tug. Wharf and a yacht on fire at Iron Cove. Port Authority Brenda barge incident, and FRNSW teamwork, August 2019 August and September 2019 As well as managing or combating This involved holding dual briefings these incidents in Port Authority’s between the agencies about shared roles ports, 2019/20 also saw its pollution and how the two organisations can work response staff lending their expertise together in terms of drills and training in a multi‑agency response to the Brenda to ensure preparedness and strong barge incident at Pittwater. This involved communication in an incident. a capsized barge and a sullage truck, with Port Authority providing equipment and operational support in Pittwater.

Sydney Harbour and Port Botany • 51 52 Port Authority of New South Wales Annual Report 2019/20 and sea survival skills. will be ondeveloping firefighting In theyear ahead,thetraining focus the appropriate training. to ensure Port Authority provided for allteam membersandanalysed Competency Assessment was completed were carriedoutafter athorough and Working at Heights.These Media Training, Tanker Safety Training Support Apparatus masks,First Aid, Dogman’s Certificate, Emergency Life Cultural Awareness, Dangerous Goods, Advanced Equipment Operation, needs. Courses includedBasicand courses meetingthediverse training in total, including17different training participating in2038 hoursoftraining on training in2019/20, withstaff Marine Operations hadamajorfocus External training towage licences intheotherNSW ports. to the promulgation ofnon-exclusive Port Authority’s focus willnow turn the ports. to improve safety outcomes within simulation exercises withPort Authority share information andparticipate injoint The licence alsocontains obligations to for staff. compliance andtraining programs quality service standards, including a communications system andcertain is maintained withintheport,andincludes for abooking,andthat aminimumfleet commence withintwo hours ofarequest available continuously andready to requirement that towage services be The standards inthelicence includea these ports. emergency response capabilities within improved portsafety, efficiency and of towage services andwillresult in a new safety standard for theprovision non-exclusive towage licence that sets providers, Port Authority developed a extensive consultation periodwithtowage Port Botany inMay 2020. Following an towage providers inSydney Harbourand signed non-exclusive towage licences with In afirst for NSW ports, Port Authority 12.6 Introduction of towage licences 12.7 Cruise in Sydney Harbour

Cruise ship visits to Sydney Harbour, 2019/20

TOTAL TOTAL 2019/ 2018/ JULY AUG. SEPT. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUNE 20 19 Sydney Overseas 5 10 11 20 22 27 25 26 19 0 0 0 165 214 Passenger Terminal Sydney White Bay* 2 1 3 5 10 18 16 15 11 0 0 0 81 95 Sydney other 1 3 0 0 0 1 2 4 13 6 1 0 31 14 TOTAL 8 14 14 25 32 46 43 45 43 6 1 0 277 323 * White Bay includes both White Bay Cruise Terminal and White Bay berth 4.

Total passenger exchange in Sydney Harbour split by passenger terminal, 2019/20

TOTAL TOTAL 2019/ 2018/ JULY AUG. SEPT. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUNE 20 19 Sydney Overseas 24,550 46,626 57,774 111,165 126,894 165,206 167,676 169,077 92,669 0 0 0 961,637 1,135,689 Passenger Terminal Sydney 8,897 4,492 13,417 14,177 31,905 48,740 46,891 25,575 20,331 0 0 0 214,425 302,673 White Bay* TOTAL 33,447 51,118 71,191 125,342 158,799 213,946 214,567 194,652 113,000 0 0 0 1,176,062 1,438,362

Note: Includes both debarked and embarked passengers. * Sydney White Bay includes both White Bay Terminal and White Bay berth 4.

Total passenger exchange in Sydney Harbour, 2019/20

JULY AUG. SEPT. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUNE TOTAL 2014/15 25,774 40,483 63,197 114,266 126,190 170,577 173,713 142,626 148,440 76,572 20,529 48,791 1,151,158

2015/16 38,213 22,260 62,467 111,746 141,263 170,459 189,889 172,696 149,117 126,771 63,192 61,250 1,309,323

2016/17 57,288 45,103 64,157 103,593 186,488 180,831 246,518 202,301 193,176 137,351 61,684 54,512 1,533,002

2017/18 53,951 56,737 52,568 120,080 199,017 228,229 227,212 216,204 229,689 121,580 37,962 56,607 1,599,836

2018/19 50,296 47,242 72,247 119,039 165,056 204,849 205,919 165,877 195,870 118,432 46,460 47,075 1,438,362

2019/20 33,447 51,118 71,191 125,342 158,799 213,946 214,567 194,652 113,000 0 0 0 1,176,062

Note: Includes both debarked and embarked passengers.

Sydney Harbour and Port Botany • 53 54 Port Authority of New South Wales Annual Report 2019/20 home ports. departing withoutpassengers for their for refuelling andreprovisioning before to berths,orto access trade berths ship visitsto anchorages to await access visits to ‘Sydney represents other’ cruise The significantincrease from 14 to 31 in 2019/20 compared to 95 in2018/19. ships visited White Bay CruiseTerminal compared to and81cruise 214in2018/19 the Overseas Passenger Terminal, During 2019/20, 165cruise shipsvisited in operating standards. and restructures itselffor achange be required astheindustry re-evaluates seasons. Aperiodofadjustment will with recovery anticipated over multiple lasting impactsonthecruiseindustry impact oftheCOVID-19 crisismay have Port Authority anticipates that the 1.4 million in2018/19. Authority’s terminals, down from passengers passed through Port 323 in2018/19, andalmost 1.2million 277 cruiseshipvisits,down from In 2019/20, Sydney Harbourhosted Queen Victoria at theOverseas Passenger Terminal, Circular Quay, Sydney ships to visitSydney. of the Seas,theseare thelargest cruise in linewithhersister ship to Ovation With apassenger capacityofover 5000, visit to Sydney on27 February 2020. Spectrum of theSeasmadeherinaugural by on 1 February, andcloselyfollowed Sydney thiscruiseseason,arriving the first ofCunard Line’s vessels to visit and 5 March 2020. QueenElizabethwas Terminal at Circular Quay on17February 2 sailedinto theOverseas Passenger ships, QueenElizabethandMary in February astheprestigious cruise Sydney welcomed two royal arrivals residential yacht’. of The World largest, ‘the private port. February alsosaw thereturn arrived, makingSydney herhome In December, theCarnival Splendor arrived withover 3500 passengers. In October 2019, theRuby Princess Splendor andVasco. DaGama Boudicca, Explorer Dream, Carnival on theirmaidenvisits–Ruby Princess, Sydney Harbourhosted five cruiseships Season highlights Queen Mary2on5February. Commencing on 29 February 2020, Sea Passenger Boarding Bridges Spectrum of the Seas hosted free Two new SPBBs were installed at the cruises for rural firefighters and their Overseas Passenger Terminal in August families as a reward for their hard 2019. The SPBBs, built in Spain and work and dedication during the NSW transported to Sydney fully assembled bushfires. Port Authority assisted these on a cargo ship, comprise two fully benefit cruises by significantly reducing independent passenger bridges – applicable port charges. bespoke gantries with a 30-year design life. Each bridge is 43 metres long with Operational activities an operational vertical range of 8.2 metres, and is able to extend seaward Terminal improvements to 6.6 metres, with a width of 55 metres Over the 2019/20 cruise season, along the wharf. construction activity at the Overseas Passenger Terminal was planned closely Each can independently connect to accommodate cruise operations. to a ship, providing an elevated walkway leading passengers directly to the This was to ensure new construction and terminal disembarkation/embarkation improvements could be made side-by- point on level 3 of the Overseas side with highly fluid cruise terminal Passenger Terminal. Both bridges activities. Major works included wharf are semi-automated, and able to adjust works in preparation for the new SPBBs, positions in unison with the ship and involving laying rails for the SPBBs and the tide movements. Together, the extensive reinforcements. The breezeway bridges move over 1200 passengers section of the Overseas Passenger every 30 minutes – improving Terminal was enclosed, affording better the terminal’s operational efficiency, weather protection for the baggage increasing capacity and allowing operations and greater security with for quicker and easier embarkation delineation of a security zone at the front and disembarkation for passengers. of the terminal. The lower road was resurfaced, and markings were repainted The two bridges replaced the single PEG, throughout the wharf and road areas. making for a more efficient passenger exchange process, enabling the Ovation of the Seas – the largest ship currently calling to the Overseas Passenger Terminal – to turnaround in an 11-hour window and in preparation for the arrival of the next ‘Oasis’ class ships, with over 6000 passengers.

Installing the new Sea Passenger Boarding Bridges, August 2019

Sydney Harbour and Port Botany • 55 56 Port Authority of New South Wales Annual Report 2019/20 on 12 or more cruises. more thansixcruises,and30percent Passenger’s readers have beenon hemisphere –over 50percent ofCruise of cruise enthusiasts inthesouthern awards, makingitthelargest poll Over 11,000 readers voted inthe the Seas to smallerboutiquecruiselines. from thelargest shipslike Ovation of and abilityto host shipsofallsizes – commended for itstwo cruiseterminals and iconic landmarks,Sydney was also Noted for itspicturesque harbour Readers’ Choice Awards 2019. port in Australia intheCruisePassenger Sydney was namedthebest cruise Cruise accolades to whichthey belong.Onanannualised ships andirrespective ofthecruiseline to aprioritysystem basedonindividual system. Slotsare allocated according administration rulesfor thecruisebooking from January2020. Itsetsoutthe in November 2017 andappliesto bookings The CruiseBookingPolicy was launched and cancellations Cruise BookingPolicy Ovation of theSeasarrives at theOverseas Passenger Terminal, Circular Quay, Sydney will continue indefinitely. Bridge to White Bay CruiseTerminal vessels that fitundertheHarbour season. The existing practice ofallocating deployments over more than one annual Term Deployment Policy for vessel in consultation withindustry, aLong Policy, Port Authority isdeveloping, In additionto theCruiseBooking ban cameinto effect on15March 2020). after theAustralian Government’s cruise charge cancellation fees to cruiselines receipts (notingPort Authority didnot in 2019/20 was supported by these the policy andPort Authority’s revenue have attracted cancellation fees asper to thebookingdate. Late notifications in past years hadcancelled much closer in behaviour by thecruiselines,which This constituted asignificantshift cancellation andreplacement notices. Port Authority received numerous early Prior to theCOVID-19 pandemic, a replacement vessel for that slot. and whetherornotthey nominate the cruiselinesnotifyPort Authority fee, dependingonhow far inadvance of confirmed bookingsmay attracta based onbusiness volume. Cancellations basis, priorityallocation isdetermined 12.8 The Bays West • Operational capabilities essential for Sydney’s harbour economy including: Precinct • vessel refuelling and pump-out The Bays West area comprises Rozelle facilities for Sydney’s commercial Bay, White Bay and Glebe Island vessels, including ferries alongside Rozelle Rail Yards and • space for marine contractors, which White Bay Power Station. The precinct maintain Sydney’s seawalls, jetties is a working harbour, primarily used and other marine infrastructure for industrial and maritime purposes. • staging areas for events such The area has significant heritage value as the New Year’s Eve and Australia with landmarks including the Glebe Day fireworks, and Opera Australia’s Island Bridge, White Bay Power Station annual Sydney Harbour concerts and White Bay Cruise Terminal. • berthing facilities for commercial The port precinct at Glebe Island shipping and harbour service providers, and White Bay has been a working such as tugs and refuelling vessels, port for over 100 years. It is a critical as well as research vessels asset for Sydney Harbour and for NSW. It currently provides: • staging areas for the NSW Government’s major transport • Port capacity and critical marine projects, including Sydney Metro supply-chain capability for essential City & Southwest, WestConnex, construction materials for Sydney’s Western Harbour Tunnel and infrastructure growth. Sydney Metro West. • An award-winning cruise terminal, which hosted 81 cruise ship visits and close to 200,000 passenger exchanges in 2019/20.

Aerial view of the working port at White Bay and Glebe Island

Sydney Harbour and Port Botany • 57 58 Port Authority of New South Wales Annual Report 2019/20 The mainlocations includeareas Bays West Precinct for project delivery. licence landfrom Port Authority inthe and Sydney Metro West, alsoplanto including theWestern HarbourTunnel Other majorinfrastructure projects, to be complete andopenin2023. the next three years andare expected space. The works willbeongoingover and upto 10hectares ofnew open new active transport optionsinRozelle underground, theproject willdeliver By buildingtheinterchange mostly at the site oftheoldRozelle RailYards. be mostly underground and located The finalinterchange in Rozelle will the proposed Western HarbourTunnel. Bridge andAnzacBridge, withlinksto of Victoria Road between Iron Cove Link andprovide anunderground bypass motorway interchange to theCityWest Link. This willprovide anew underground for theRozelle Interchange andIron Cove Glebe Islandto stage construction works project haslicensed anarea oflandon delivery. Specifically, the WestConnex continue alongsidemajorinfrastructure functions intheBays West Precinct will underway, theportandworking harbour While planningfor theprecinct is direction for theprecinct. in late 2019, focusing onthelong-term a new approach to precinct planning SpacesPlanning andPublic announced Infrastructure NSW). The Minister for investigated by UrbanGrowth (now This precinct haspreviously been port services. potential, whilst retaining theimportant tourism, unlockingthearea’s economic innovation, business, dwellings and This willpromote opportunitiesfor urban renewal withanintegrated port. and variety ofitslandusesthrough productivity by increasing theintensity will have capacityfor greater economic In thefuture, theBays West Precinct chain inSydney. capacity to service theconcrete supply is significantunmetdemand for port major infrastructure projects), there construction staging demandsofthe profile for working harbouruses(beyond any majorchangeinthecurrent demand While Port Authority isnotanticipating while alsoaccommodating portuses. major transport infrastructure delivery through aninterim phasethat facilitates supply chainandworking harbouruses and future demandsofcruise, port Port Authority willmanagetheexisting impacts. projects to understand andmitigate proactively withthemajortransport Port Authority continues to work and GlebeIslandberths3to 6. adjacent to White Bay Power Station, of White Bay berths1,2and3,thesite in theSydney region. arising from truck movements onroads air pollutionandroad maintenance costs social benefits by minimising congestion, brings significantenvironmental and and gypsum.Importingmaterials by sea receives shipmentsof cement, sugar, salt the early1990s.Currently, GlebeIsland supply needsandhasdonesosince in supporting Sydney’s construction Glebe Islandalready plays akey role economic viabilityofthecityandState. is criticalto ensuringthelong-term land andtheworking portcapacity existing industrial andurbanservices freight andtrade routes, andretaining and protecting existing international infrastructure willbeessential, preserving development andimproved transport million by 2036. While increased urban population inthisregion ofover 1.3 is planningfor anestimated future rapidly andtheNSW Government The innerSydney region isgrowing Concrete supply There is a crucial need for Sydney Port Authority is currently going to import dry bulk construction through a procurement process to select materials for concrete production due operators for the facility once it is built. to the depletion of local sand supplies There could be multiple companies that in Sydney and the need to meet the import sand using the facility. increasing demand for these materials The construction of the multi-user facility in the inner city. This will help service has followed the NSW Government the demands of the NSW Government’s planning processes under Part 5 of the $93 billion infrastructure program. Port Environmental Planning and Assessment Authority has identified two projects Act 1979. To date, community to service the concrete supply chain: consultation has occurred through • a multi-user facility to allow sand the process shown here. and rock aggregates (as ingredients to be used in concrete) to be imported by sea 31 JANUARY – 12 MARCH 2018 • a potential concrete batching plant Review of Environmental Factors to support a relocation of the Hanson (REF) on public exhibition Construction Materials (Hanson) A report detailing the environmental batching plant from Blackwattle Bay. factors to be considered for the facility was provided for the community Multi-user facility to comment on. To help meet the increased demand in Sydney for construction materials, Port Authority is building a multi-user 28 OCTOBER 2019 facility at Glebe Island that will provide a low-impact and sustainable way Release of Response to Submissions to transport the materials – a single (RtS) Report vessel can keep up to 1500 truckloads Around 300 submissions were off the roads. received on the REF, primarily from the community. Port Authority reviewed The multi-user facility will be located and responded to the submissions adjacent to berths 1 and 2 on the eastern in the RtS Report, which was released side of Glebe Island. to the public. A series of information The operation of the multi-user facility sessions were held to explain would: the RtS and its findings. • facilitate taking sand, and rock aggregates off ships

• move the materials via conveyor belts Port Authority, as a delegated approval to an enclosed storage building authority, considered the REF, • feed materials from the storage bays the RtS Report and the associated to an internal truck loading area, before environmental assessments, being distributed to concrete batching and determined that the multi-user plants in Sydney. facility is not likely to significantly affect the environment, with the implementation of the noted mitigation measures (conditions).

Sydney Harbour and Port Botany • 59 60 Port Authority of New South Wales Annual Report 2019/20 and project signage. fencing, site sheds, andsafety the site area, andinstalling temporary will take place, includingmappingout construction can start, site establishment to start inAugust 2020. Before Construction ofthefacility isscheduled possible concepts to inform thedesign. to provide feedback andto discuss in mid-2020, andresidents willbeasked committee. The committee willmeet exterior finish by joining a consultative invited to have theirsay onthefacility’s of thefacility, localresidents have been concerns around theexternal appearance To helpmitigate thecommunity’s work willbe avoided where possible. be kept to a minimumandout-of-hours In addition,duringconstruction, noisewill consideration thecommunity’s feedback. policy willbefinalisedafter takinginto commenced on15June2020 andthe way. Consultation onthepolicy Island andWhite Bay inasustainable to managing noiseimpactsat Glebe Noise Policy aspartofacommitment Port Authority has developed a draft Port To helpmitigate concerns around noise, for residents. consultation process askey concerns appearance were identifiedinthe Noise andthefacility’s exterior Early concept artofthemulti-userfacility, GlebeIsland the Port Authority website. and newsletter updates canbefound on facility, including allplanningdocuments More information ontheproposed • • • • • completed by mid-2021 andwillinclude: footing. Construction isexpected to be concrete perimeter wall andconcrete pile frames, colorbond cladding,aprecast be constructed usingstructural steel The 15,000 square metre facility will The proposed facility would have from Blackwattle Bay to GlebeIsland. its adjacent concrete batching plant aggregate unloading facility, and relocating its vessel berthingand Bay inMay 2020. Hansonhasproposed required to vacate itssite at Blackwattle Bays East Precinct meansHanson was the Sydney FishMarket andsurrounding Infrastructure NSW’s redevelopment of Concrete batching onGlebeIsland the facility. completing aroad to service cladding andbuildingservices erecting thestructural steel frame, perimeter wall installing aprecast concrete pouring concrete pilefooting (ground area and footing) preparing thehardstand the capacity to manage up to one which work closely with Port Authority million tonnes of aggregates per annum, operational teams during marine delivered by ship. emergencies. Hanson is in the process of obtaining The proposed vessels are high speed, planning approval under Part 4 of the functional ‘workboat style’ vessels. Environmental Planning and Assessment In addition to meeting international Act 1979 (NSW) for their proposed standard firefighting specifications, concrete batching plant adjacent they have good performance to Glebe Island berth 1. Hanson prepared characteristics in a variety of sea states an Environmental Impact Statement, and in restricted areas of navigation. which was placed on public display They will deliver higher fleet utilisation from 11 April to 15 May 2018; prepared rates and lower overall service delivery a Response to Submissions report, costs, thereby allowing for greater agility which was released on 3 February in maintenance schedules. 2020; and at the request of the It is anticipated that construction will Department of Planning, Infrastructure commence in 2020/21 and the vessels and Environment, prepared a second will enter service in 2021/22. Response to Submissions report, which was released on 11 June 2020. Hanson’s proposal is awaiting planning approval. Glebe Island 8 Glebe Island berth 8 is situated on If approved, this plant would play a the western shore of the Glebe Island critical role in supporting Sydney’s Peninsula. The berth is currently used immediate and ongoing concrete by commercial vessels importing cement batching needs. It would also enable for concrete production. raw materials to be imported via a more sustainable marine-based supply chain, The wharf structure is 100 years old, taking a significant number of trucks off and restoration works are currently the road and reducing congestion. underway to reinstate the working load capacity of the deck. The works involve replacing deteriorated timber piles 12.9 Capital projects and components with new piles and structural elements, restoring strength Multi-user facility to the wharf and preserving its function for years to come. See Section 12.8. Enabling works were completed prior Firefighting Tugs to the wharf restoration works, including levelling the seabed in the berth box Replacement project at the head of White Bay to ensure Port Authority is planning to procure continued safe berthing of vessels during new emergency response / firefighting the wharf upgrade works. vessels for Sydney Harbour and Port Botany. The current firefighting tugs White Bay (Shirley Smith and Ted Noffs) are at refurbishment works the end of their operational lifecycle, having been built in 1987. They have Over recent months, Port Authority operational limitations, and the need has undertaken works to upgrade for ongoing maintenance has become infrastructure around the White Bay more frequent and unpredictable, port precinct, including road pavement increasing the risk of a potential service resurfacing, signage upgrades, building disruption. Procuring new, modern refurbishment works, removal of emergency response / firefighting vessels redundant infrastructure, and general will enhance the service to external painting and landscaping activities. stakeholders such as Fire and Rescue NSW and private port operators,

Sydney Harbour and Port Botany • 61 62 Port Authority of New South Wales Annual Report 2019/20 of these are describedbelow. of criticalportinfrastructure. Some to facilitate thecontinued performance Port Authority isfocusing onprojects 12.10 compromising onsafety. cargo and sailingwindows without vessels of allclasses to maximise This criticalinformation allows ocean (ocean monitoring) parameters. incorporating live weather andmet- vessel transits usingscientificmodelling, software allows Sydney VTS to forecast support tool. This state-of-the-art a Dynamic UnderKeel Clearance decision During 2019/20 Sydney VTS adopted Services upgrade Vessel Traffic visitors andportusers. an enjoyable experience for allcruise the area well maintainedandto ensure Terminal itisimportantto keep As hometo theWhite Bay Cruise Maintenance work onHornby Lighthouse, Sydney The year ahead coastal environment. adequately protected from itsharsh of thelighthouseisrestored and applied that ensures that thefabric will allow acoating system to be The results oftheinvestigation process a paint coating research investigation. in heritagestructures, to conduct group, theNSW Government specialists Works Advisory HeritageAsset Advisory Port Authority willwork withthePublic heritage stonework. to preserve andprotect thelighthouse’s to restore thelighthousestructure, and Port Authority isembarkingonaproject in the State HeritageInventory. is noted asbeingofState Significance Section 170 HeritageRegister and lighthouse islisted onPort Authority’s and Sydney Harbour. Builtin1858,the the southernentrance to Port Jackson National Park nearWatsons Bay. Itmarks AtoN located intheSydney Harbour Hornby Lighthouseisanoperational upgrade works Hornby Lighthouse Sydney’s Overseas Passenger Terminal is Australia’s leading cruise destination

Overseas Passenger at the Overseas Passenger Terminal Terminal Berthing and ensure it can accommodate the requirements of current and future Infrastructure project vessels. The project includes installing Port Authority is responsible a long-term engineering solution for the provision and management to mitigate the effects of scour and of the Overseas Passenger Terminal accretion, and the impact of identified at Circular Quay, including the timely risks caused by modern-day cruise ships. and safe movement of cruise passengers This major long-term preventative to and from vessels visiting the terminal. maintenance project involves stabilising The Overseas Passenger Terminal is and protecting the steel-sheet pile the only berth that can accommodate seawalls and concrete caisson units the larger-sized cruise ships and, due supporting the Overseas Passenger to the strategic value of the terminal, Terminal wharf structure. The works it is important it continues to operate as will be undertaken in two parts, with safely, efficiently and reliably as possible. early works being completed by the end The objective of the Berthing of 2020, and the remainder of the works Infrastructure project is to facilitate completed by the end of 2021. safe, efficient and reliable berthing

Sydney Harbour and Port Botany • 63 64 Port Authority of New South Wales Annual Report 2019/20 • • • • • • • • • included supportfor: This continued throughout 2019/20 and to support broader community issues. to participate infundraising events community groups anditsstaff continue of support andsponsorshipoflocal Port Authority hasalonghistory Community support • • • • please refer to thefollowing sections: and sponsorshipat different ports, For detailsofcommunity engagement with andunderstand thembetter. and continually looksfor ways to work with itsvarious community groups The business values itsrelationship it operates. member ofthecommunities inwhich Port Authority isproud to beanactive 12.11 International Seafarer’s Day. support for ‘Dress for Success’ International Women’s Day with International Workers Day (May Day) Australia’s Biggest Morning Tea Vinnies CEOSleepout Awards –Gender Diversity Award DCN ShippingandMaritimeIndustry Birchgrove School Public Sydney HeritageFleet Mission to Seafarers Port ofEden (Section15.5). Port Kembla, (Section14.4) Newcastle Harbour(Section13.4) (section below) Sydney andPort Botany Community Community and sponsorship engagement • • • representatives continued to: During thereporting year, Port Authority Community meetings Chair to facilitate themeetings. Port Authority hasappointed anexternal on any initiatives beingconsidered. with the community andgather feedback opportunity to discuss port operations and portindustry stakeholders the The CLG provides Port Authority at GlebeIslandandWhite Bay. stakeholders aboutactivitiesat the port inform thelocalcommunity andother Liaison Group (CLG) isaforum to The GlebeIsland / White Bay Community Community LiaisonGroup Glebe Island / White Bay Cruise Terminal. cruise shipsberthedat White Bay meets to discuss impactsfrom and InnerWest Council. The group representatives from thecommunity These meetingsare attended by Cruise Terminal community meeting. Chair thequarterly White Bay and Foreshore Beach. Botany Boat Ramp, Penrhyn Estuary management. These includethePort assets that remain underPort Authority relating to thecommunity onnearby to provide information onmatters continue to attend thesemeetings the landowner ofPort Botany, staff Although Port Authority isnolonger Committee, convened by NSW Ports. Port Botany Community Consultative Attend quarterly meetingsofthe West councils. projects, andCityofSydney andInner relevant NSW Government transport of community, ourporttenants, are attended by representatives Liaison Group. These meetings Glebe IslandandWhite Bay Community Convene quarterly meetingsofthe The CLG comprises 11 community Community events representatives from the Balmain, Rozelle and Pyrmont areas. Details Community venues of the 11 CLG members can be found Port Authority has several iconic locations on the Port Authority website. available for events, brand activations and filming hire on days when there are Community complaints no ship visits. These include the Overseas and enquiries Passenger Terminal and White Bay Cruise Terminal, and several other locations During 2019/20, Port Authority received on the Sydney Harbour foreshore. 294 complaints. This was up from 182 in 2018/19 and 263 in 2017/18. The Overseas Passenger Terminal is Sydney’s premier location for events Of the total complaints received, 172, or and activations, offering hirers direct 59 per cent, were received in March 2020, views of the Sydney Opera House and when Australian Government restrictions harbour from each of its four indoor event were placed on the entry of cruise vessels. spaces. A combination of major public This left a number of vessels stranded, events and private events were held requiring berthing space, as well as fuel at both the Overseas Passenger Terminal and provisions before being able to sail and White Bay Cruise Terminal over back to their home ports. the course of the business year. Most complaints related to noise White Bay Cruise Terminal offers views and ship emissions from vessels at White of the Sydney skyline, with the versatility Bay Cruise Terminal and Glebe Island to host all types of events, such as in Sydney. All complaints are registered cocktail parties, corporate conferences, in a central database. gala dinners, exhibitions, fashion shows, Service NSW continued to manage festivals, charity events, community the Port Authority complaints and events, public parades, outdoor cinemas enquiry line on a 24-hour basis to ensure and live sites. complaints are managed in real time The COVID-19 pandemic had a major where possible. impact on Port Authority’s revenue from Port Authority’s enquiry contact private client events towards the end details are: of the 2019/20 financial year. Government regulations to control the health crisis P: 02 9296 4962 meant that a busy program of private E: [email protected] client events either had to be cancelled or postponed until 2021. Community notifications Members of the community can sign up to a project-specific and community notifications email to receive information about changes to shipping movements and significant marine incidents, such as an oil spill. During the reporting year, 18 community notifications were issued and published on the Port Authority website.

Sydney Harbour and Port Botany • 65 66 Port Authority of New South Wales Annual Report 2019/20 for guests and friends. Terminal to host theirBastille Day event Arrivals HalloftheOverseas Passenger The French Consulate alsochosethe featured anorgan carousel at itsheart. hosted achildren’s playground that of the Overseas Passenger Terminal of the weekend. The southernforecourt guests visited thefestival over thecourse 200,000 Sydneysiders andinterstate for the first timein2019. More than French Festival and Christmas inJuly Port Authority participated intheBastille Bastille Day andChristmas inJuly to ensure publicsafety. fireworks display, the event was cancelled due to highwindsaround thetime ofthe annual fireworks display. Unfortunately, a viewing area for theBayside Council’s of theforeshore carparkat Botany as with Bayside Council to allow theuse For thefirst time, Port Authority worked display to herald thestart of2020. the harbourforeshore to seeanincredible domestic visitors andSydneysiders lined Large numbersofinternational and New Year’s Eve 2019 of the Overseas Passenger Terminal Bastille Festival at thesouthernforecourt by emergency volunteers andresponders. spirit, courage andgenerosity shown to show gratitude for theinspirational Australia Day 2020 provided anoccasion Australians doingextraordinary things. state andacknowledging everyday communities together throughout the 2020 played animportantrole inbringing together. Without doubt,Australia Day spirit, celebrate ourstrengths andstand opportunities to show theAustralian and upliftingby creating meaningful to ensure itwas sensitive, appropriate sentiment, theprogram was adjusted in lightoftherecent bushfires, andpublic In response to theextreme circumstances evening event programs. role inthe success oftheday-time and with the terminal playing animportant to the precinct throughout theday large crowds were once againdrawn of place at Australia Day 2020 and Unity andcommunity spirittook pride is set to continue until2025. with theAustralia Day Council, which throughout Port Authority’s partnership precinct hascontinued to increase Passenger Terminal anditssurrounding The prominence oftheOverseas Australia Day the Overseas Passenger Terminal Australia Day events were heldinandaround Australia Day light show at Circular Quay on Sydney Harbour, January 2020

Australia Day 2020 also created a The Arrivals Halls of the Overseas video to highlight the role the Overseas Passenger Terminal hosted an important Passenger Terminal has played in new piece of programming. Indigenous Australian history – from its first arrivals artist Brett Leavy of Virtual Songlines to the ‘Lucky Country’ after World War launched his Virtual Warrane project II, to hosting the first cruise ship (P&O’s – an Indigenous virtual reality cultural Oriana), through to the modern cruise experience – on Australia Day. Brett industry with more than 200 cruise ships describes his work as ‘building a time arriving each year. As a popular piece machine so people can travel back of content developed for Australia Day to the land of the Gadigal.’ The popular 2020 social media channels, it received exhibition enabled people to see what almost 24,000 views and many poignant Sydney Cove (Warrane) looked like prior comments – including those from people to the arrival of the First Fleet, with who migrated to Australia and stepped Gadigal custodians’ stories played out. ashore for the first time at the Overseas Passenger Terminal. The video was also Sydney Lunar New Year shown on large event screens located For the fourth successive year, Port on and around Circular Quay, as well Authority participated in Sydney’s as inside the Sydney Opera House. Lunar New Year 2020 Lantern festival in February, with the Overseas Passenger Terminal Precinct once again being central to the event. The southern forecourt hosted the Spiral Pigs, with the Tiger on the Circular Quay side of the Figtree and the Monkeys in Cadman Reserve. At the time, Australia had closed its border to China because of the COVID-19 pandemic, so whilst the event was popular with locals, it did not have the Australia Day activities at the large international crowds that it has Overseas Passenger Terminal attracted in previous years.

Sydney Harbour and Port Botany • 67 68 Port Authority of New South Wales Annual Report 2019/20 subscribed withinafew days ofrelease. event ran three timesaday; andwas fully Station carpark.This free community actions withthefinale at White Bay Power of holding peopleaccountable for their contemporary world andthe impact explored‘Passenger’ theethicsof the cowboys respond to alawless world, Referencing iconic Western filmswhere of theaudience were alsothepassengers. a journey onboard abus,where members About program. involved ‘Passenger’ part ofCitySydney’s 2020 Artand a free experiential event that was akey at theOverseas Passenger Terminal – Authority hosted thefinaleof‘Passenger’ From 26February to 8March 2020, Port program City ofSydney’s ArtandAbout White Bay CruiseTerminal. CEO Sleepout2021 will behosted at the $14,000 for Australia’s homeless. Vinnies chose to participate andraised more than CEO, Philip Holliday andhiswife Cath, by sleeping outat home. Port Authority’s with CEOsencouraged to participate CEO Sleepoutwent onlinefor 2020, Due to theCOVID-19 pandemic,Vinnies Vinnies CEOSleepout2020 COVID-19 pandemic. decision to cancel Vivid 2020 dueto the Destination NSW madethevery difficult Vivid Sydney 2020 at White Bay A performance ofPassenger plays out Rabobank’s ‘Don’tbeaWaster’ tour. of theFuture’ by Sodastream and sustainability. These included‘Oceans several stand‑out events focussed on hosting many activations including be a popularbrand activation space Passenger Terminal continues to The SouthernForecourt oftheOverseas Southern Forecourt artists whoparticipate. the healthandsafety ofthemany remote Indigenous ArtFair until2021 to ensure decision to postpone theNational Hand Solutionsmadethevery difficult Due to theCOVID-19 pandemic,First National Indigenous Art Fair 2020 in a diminishing Sydney venue landscape. again becauseofitsuniqueoffering the terminal come backtimeand and space itoffers. Clientswhouse powerhouses whichlove theprivacy car companies, retailers andfinancial hosted product launchesfor major commercials. White Bay CruiseTerminal crews for movies, TVseriesand international andAustralian-based film White Bay continues to bepopularwith and beverage producers, andtoymakers. for make-up, jewellery, finance, food marquee product launchesandevents back to thecentre ofSydney with continues to attract international brands The Overseas Passenger Terminal Other notableevents 13 Newcastle Harbour

ATugs tanker guide navigating a vessel intothough Newcastle Sydney HarbourHarbour

Newcastle is 162 kilometres north of Sydney and is the economic and trade centre for the Hunter region and much of the north and north-west of NSW. The harbour provides a significant gateway to the resource-rich Hunter Valley.

Newcastle Harbour is Australia’s oldest • PSOL functions including: export port and one of the country’s • incident reporting largest ports in terms of volume traded. Coal exports represent more than 90 per • emergency response cent of total volume, and the remainder • notifications for dangerous goods, comprises other bulk cargoes such bunkering (refuelling vessels) as grains, vegetable oils, alumina fertilizer and hot works (any works that and ore concentrates. could result in a fire or works in a combustible environment) • responsibilities under the Hunter 13.1 Overview Coal Export Framework The Head of Operations Newcastle • participation in the Hunter Valley and North Coast manages the following Coal Chain Coordination functions in Newcastle Harbour: • approval and administration of local • pilotage services and the Harbour knowledge certificates Master, including publishing information • management of Nobbys Headland about depths in different areas and maintenance of Macquarie Pier of the port • asset management. • Vessel Traffic Information Centre (VTIC)

Newcastle Harbour • 69 70 Port Authority of New South Wales Annual Report 2019/20 movements andoperations. or developing situations that canaffect port user safety, the environment orport the efficiency of movements withintheportlimits. TheVTICmonitors forpotential The VTICprovides ahighlevel ofservice that facilitates thesafe operation and since 2002. The Vessel Traffic Information Centre (VTIC)hasoperated within Newcastle Harbour Vessel Traffic Information Centre to Newcastle would have beenhigherthanin2018/19. ban oncruisevessel visitsfrom 15March 2020 basedonbookings,cruisevessel visits in theprevious year. Ifnotfor COVID-19 and theconsequent Australian Government A total of12cruiseshipscalledto Newcastle Harbourin2019/20, three visitslower than activity inNewcastle Harbour. Port ofNewcastle Operations Ltd Pty owns cruiseinfrastructure andmanagescruise Cruise shipvisitsto Newcastle, 2019/20 were performed, with3353 oftheseby helicopter and1212by cutter. A total of4606pilotagemovements (inward, outward andharbourremovals) of 2percent from 2018/19, to 163.8 milliontonnes. owing to theongoingdrought. Coal exports performed well, withanincrease involume cent decrease from 2018/19. This was driven by reduced wheat andfertiliser trade The financial year 2019/20 saw 2278 trade vessel visits to Newcastle Harbour, a1per Trade vessel visitsto Newcastle, 2019/20 13.3 emergencies. sustainable portwitha timelyandeffective response to water‑based incidentsand All marineoperations activitiesfocused onmaintainingasafe andenvironmentally Newcastle Harbour. (See Section3.2for furtherdetails). promoting thesafe andefficient movement of commercial vessels operating on Marine Operations maintaineditshighstandard ofservice delivery during2019/20, 13.2 Newcastle Newcastle Summary review ofoperations Marine Operations JULY JULY 208 0 AUG. AUG. 200 0 SEPT. SEPT. 174 0 OCT. OCT. 202 3 NOV. NOV. 177 5 DEC. DEC. 215 2 JAN. JAN. 193 2 FEB. FEB. 164 0 MAR. MAR. 188 0 APR. APR. 191 0 MAY MAY 167 0 JUNE JUNE 199 0 TOTAL TOTAL 2019/ 2019/ 2,278 20 20 12

TOTAL TOTAL 2018/ 2018/ 2,297 19 19 15

During 2019/20 the VTIC: Exercises and training • facilitated safe and efficient transit In 2019/20, Port Authority participated of 4633 vessel movements in a number of exercises to test response • provided Search and Rescue (SAR) plans and meet its obligations under watch for 3353 helicopter movements the PSOL, and provided training to employees. Newcastle Port Authority • coordinated the response to nine employees participated in the following pollution reports exercises, training and incident responses • proactively cleared anchoring during 2019/20. in preparation for forecast adverse weather events. State Response Team workshop, September 2019 The VTIC is the interconnecting interface of the whole operation within Four attendees from Port Authority Newcastle Harbour. It is a conduit for participated in the State Response Team communication, not only within the workshop held in Avoca. organisation but also to and from other The workshop was conducted by port stakeholders and visitors, as well Transport for NSW. The team received as for the community in general updates on State arrangements, the National Plan functional areas, Emergency response the Australasian Inter-Service Incident Port Authority’s emergency response Management System, and its implications team includes highly trained employees, for the Oil Spill Response Incident and a variety of response equipment Control System. and vessels equipped to respond Ongoing training continues, with field to incidents. During 2019/20, Marine training and familiarisation with other Operations responded to a number response agencies (law enforcement and of maritime incidents, including emergency service providers) to support 10 reports of suspected pollution. multi-agency incident management. On-the-job training, real-life response and a number of external training State Response Team – courses assisted in keeping the skills APL England, June 2020 and knowledge of the emergency Staff responded to the container spill response team up-to-date and ready off the New South Wales coast from to respond to and combat maritime APL England as part of the State incidents. This, combined with training response team. with undertaken with other emergency response agencies on a regular basis, Newcastle Oil Spill Exercise, is paramount to enabling Port Authority December 2019 to meet its obligations. Port Authority personnel conducted an oil-spill equipment familiarisation and desktop discussion, as well as training on the deployment of various booms at the berth.

Newcastle Harbour • 71 72 Port Authority of New South Wales Annual Report 2019/20 . to its port resource managementsystems. and makes continual improvements to transition from theVTICto aVTS Port Authority hascommenced work • • • • • • • • in Newcastle in2019/20 included: Projects conducted by Port Authority Development andprojects in aladdertraining safety exercise A Port Authority marine pilottakes part capital projects. implementation ofarange ofminor moving into thebuilding Newcomen Street two new tenants refurbishment ofthree floors at container terminal development for Port of Newcastle’s proposed input into simulation required program Marine PilotRecruitment andTraining implementation ofcomprehensive Development Assessment upgrade ofMarinePilot Safety project development ofPilotLadder construction ofin-harbourlaunch inbound Tanker project with loved oneswhilst inport. of helping seafarers to stay incontact WiFi to vessels inNewcastle asaway the Tas BullFoundation to bringfree wellbeing. Port Authority hassponsored vessels, creating real concern for mental significant issues joiningandleaving their seafarers across the world have faced In thewake ofCOVID-19 pandemic, • • This includessupportfor: has continued throughout 2019/20. in the Newcastle region, andthis of supporting community groups Port Authority hasalonghistory Community support with andunderstand thembetter. and continually looksfor ways to work with itsvarious community groups The business values itsrelationship operates. member ofcommunities where it Port Authority isproud to beanactive Community 13.4 Mission to Seafarers. Region award sponsoring theContribution to the Hunter Business ChamberAwards, and sponsorship and sponsorship engagement Community liaison 13.5 The year ahead In addition to providing support for local community groups, Port Authority Macquarie Pier, Newcastle participates in community liaison revitalisation works groups including: Macquarie Pier is a prominent and iconic • Port User group, for port stakeholders local attraction in Newcastle, with a • Port of Newcastle Community Liaison rich history as Australia’ earliest known group, for community members coastal engineering structure, providing and community associations a safe approach to Newcastle Harbour. Built with convict labour, Macquarie Pier • Newcastle Port Welfare Committee has reshaped the city and its coastline, • participation on the board providing the foundation for Nobbys of the Mission to Seafarers. Beach and helping Newcastle develop into the major port city it is today. These groups are chaired and coordinated by Port of Newcastle Macquarie Pier is also an access route (the private operator of the port). for the signal station and lighthouse They are designed to provide a forum at the top of Nobbys Headland (which for information exchange and discussion is maintained by AMSA), and the on port operations and activities. breakwater (which is maintained by Port of Newcastle). Representatives are chosen because they live or work near the port Over the coming months, Port and have existing communication Authority will start a major project links with the local community. to revitalise the pier and transform the popular harbourside walkway, Community events creating a destination that will celebrate Newcastle’s maritime history and Port Authority also helps to facilitate seamlessly complement the Bathers local events and provides access to Way coastal walk. Macquarie Pier for Newcastle Time Walk, Hunter Medical Research Institute Glow Visitors will be able to take in the views Walk and the Newcastle International of Newcastle Harbour along a new Half Marathon. 900-metre pathway, complete with sandstone seating, maritime-style Port Authority continues its involvement fencing and interpretive heritage features in the Port Welfare Committee. set along the route. A new hardstand This group was formed to provide area for event activations and mobile an overarching management of all cafes will provide a perfect spot for of the local groups providing support visitors to relax and watch the activity to seafarers. The goal of this group is to of Newcastle’s working port. eliminate the duplication of services and provide the best welfare option available. The revitalised Macquarie Pier will give people a place to connect with Newcastle’s maritime heritage and create a space for the city’s community to enjoy.

Newcastle Harbour • 73 74 Port Authority of New South Wales Annual Report 2019/20 • • • • ahead willinclude: Other projects intheyear Concept artfor theMacquarie PierRevitalisation project and operational outcomes to review andimprove safety data collection andanalysis continual improvement of of Electronic Master Pilotexchange development andimplementation underground fueltankreplacement training helicopter • • as a certified VTS. AMSA to operate thecurrent VTIC towards achieving accreditation from Port Authority willcontinue to work License regime inNewcastle PSOL, implementation ofaTowage in compliance withPort Authority’s 14 Port Kembla

A view of the car import and general cargo terminal (L) and grain terminal (R), Inner Harbour, Port Kembla

Located 90 kilometres south of Sydney, Port Kembla serves the needs of regional industries including coal and steel. It is the principal grain export port for producers in southern and south- western NSW and is the largest car importation terminal in Australia.

14.1 Overview • VTIC • incident reporting The Head of Operations, Port Kembla and South Coast manages the following • emergency response to incidents functions in Port Kembla: • dangerous goods and bunkering (refuelling vessels) notifications • safety outcomes for the day-to-day operations of the port • auditing of hot work (any works that could result in a fire or works • PSOL functions including: in a combustible environment) carried • pilotage services (pilots, cutters out in the port and crew) • providing and maintaining port security • hydrographic services for providing • maintaining AtoNs up-to-date depths in the harbour and approaches • asset maintenance and management.

Port Kembla • 75 76 Port Authority of New South Wales Annual Report 2019/20 on 3August 2019 for layover andrepairs. were only crew onboard thesevessels. Inaddition,Carnival Spiritcalledto Port Kembla in preparation for theirjourney home. These visitshadnopassenger exchanges asthere by allowing redeployed cruiseshipsto berthsothat they could refuel andreprovision During 2019/20, Port Kembla assisted thecruiseindustry through theCOVID-19 crisis Cruise shipvisitsto Port Kembla, 2019/20 by Manildra. of NSW; however theportandregion benefited from theongoing importofgrain There were nograin exports dueto drought conditions inthekey growing regions Coal exports were ontarget, withbudgeted throughput achieved. monthly volume. to suit demand–inthepast themanufacturers would supplybasedonanagreed has changed, withdealersnow advisingoverseas suppliersofexactly what they need of areduction indiscretionary spending.Inaddition,thesupplyofmotor vehicles through reduced carandtruckcarriervessel visits,dueto lower carsalesasaresult previous year (795). This decrease canbepartlyattributed to theCOVID-19 pandemic, In 2019/20, there were 748 trade vessels visits,adeclineof6percent from the Trade vessel visitsto Port Kembla, 2019/20 14.3 • • Kembla: In 2019/20, MarineOperations inPort 14.2 Port Kembla Port Kembla and equipment that required deployment ofpersonnel responded to reports of pollution of the portinfrastructure activities to facilitate maintenance operations andcommercial diving including towage services, linehandling of miscellaneous marineactivities, actioned andmonitored awiderange Summary review ofoperations Marine Operations JULY JULY 72 72 0 AUG. AUG. 65 1 SEPT. SEPT. 58 0 OCT. OCT. 65 0 NOV. NOV. 62 0 DEC. DEC. 63 0 JAN. JAN. 58 • • • 0 for details.) community. (SeeSection3.2 all port usersandthewiderIllawarra website, providing information to live data available onPort Authority’s (weather andocean monitoring) with installed new met-ocean equipment for both pilot vessels on the engines andequipment continued regular maintenance air-conditioning andelectricalsystems Pilot Vessel Shearwater includingnew completed mid-life refurbishment of FEB. FEB. 65 0 MAR. MAR. 73 3 APR. APR. 54 2 MAY MAY 56 0 JUNE JUNE 57 0 TOTAL TOTAL 2019/ 2019/ 20 20 748 6

TOTAL TOTAL 2018/ 2018/ 19 19 795 795

1

The VTIC team keeps watch over Port Kembla

Vessel Traffic Exercises and training Information Centre Port Kembla is an active member of All Port Kembla VTIC employees are the local, regional and State emergency trained to international standards and response committees, and undertakes continue to provide a high-quality service regular exercises with other government for port and shipping management agencies and port stakeholders. in Port Kembla. In addition, employees undergo The VTIC is in the process of training throughout the year to ensure transitioning to AMSA-recognised VTS. proficiency with deploying and operating This change significantly improves the the variety of equipment stored safety outcomes for vessel visits to the in Port Kembla. harbour. AMSA certification is underway In 2019/20 Port Authority purchased and the procedures, checklists, work a replacement emergency response instructions and training documents have vessel from a local service provider. It been updated for VTS. Training for the will be used to deploy oil spill equipment Vessel Traffic Service Operators (VTSOs) in the event of a significant incident. is complete, and refurbishment of the VTS is underway to ensure best-in-class Annual emergency response facilities for the port with the latest exercise, December 2019 ergonomics, purpose built for efficiency This desktop exercise was attended and safety. by multiple government agencies, port owners, terminals, and berth operators. The desktop scenario was practiced with the briefing, exercise and debrief well represented and discussed by all present.

Port Kembla • 77 78 Port Authority of New South Wales Annual Report 2019/20 ones whilst inport. seafarers to stay incontact withloved in Port Kembla asaway ofhelping Foundation to bringfree WiFi to vessels Authority hassponsored theTas Bull concern for mentalwellbeing. Port leaving theirvessels –creating real significant issues whenjoiningand Seafarers across theworld have faced In thewake oftheCOVID-19 pandemic, where possible, to supportitsoperations. Authority aimsto uselocalservices, of theIllawarra Business Chamber. Port User Council. They are alsomembers and theHarbourMaster chairsthePort Port Kembla Executive Port UserCouncil South Coast isthecurrent Chairofthe The HeadofOperations Port Kembla and Patrick’s PrimarySchool. Club, Port Kembla SchoolandSt Public contributor to thePort Kembla Surf Seafarers Port Kembla aswell asa a proud majorsponsorofMission to Wollongong community, andremains with thePort Kembla andthegreater Port Authority hasalonginvolvement Community liaison with andunderstand thembetter. and continually looksfor ways to work with itsvarious community groups The business values itsrelationship it operates. active memberofcommunities where Port Authority isproud to bean 14.4 Community Community and sponsorship engagement . License regime inPort Kembla. Authority willimplementaTowage In compliance withitsPSOL,Port to online delivery. process hasmoved from face-to-face the certification process. The audit COVID-19 pandemicwhichhasaffected a delay in implementation dueto the at the start of2020/21. There was audit andcertification expected with the finalisation oftheAMSA AMSA certified VTS isimminent, The migration oftheVTICto an Illawarra community. to portstakeholders, shippingandthe high-class, efficient,andsafe services remains at theforefront inproviding These initiatives willensure Port Kembla measure theseasandwave conditions. at the entrance to theharbourto This includesawave riderbuoy with theadditionofnew equipment. monitoring –are alsobeingupgraded The telemetry –wind,wave andtide and operations around theport. and identification of vessels, people Harbour, allowing even better coverage around Port Kembla InnerandOuter network andperipheral equipment upgrades oftheCCTV camera Port Authority willcontinue with 14.5 The year ahead 15 Port of Eden

APort tanker of Eden, navigating on the thoughfar south Sydney coast Harbourof NSW

Eden is situated on the far south coast of NSW, midway between Sydney and Melbourne. Its harbour, Twofold Bay, is the third deepest natural harbour in the world.

Port of Eden services the needs of both regional industries – including forestry exports and fishing – and the Royal Australian Navy (RAN), and it is an established cruise ship destination.

15.1 Overview • complying with PSOL requirements, including dangerous goods Port Authority in Port of Eden management, surveys and maintenance is managed by the Harbour Master. of AtoNs The Harbour Master reports to the • providing emergency response and Head of Operations, Port Kembla security for the designated Maritime and South Coast. In Eden, Port Authority Security Zones within the port. is responsible for: There are five commercial wharves • providing 24/7 pilotage services in the Eden port precinct and Port • managing Snug Cove and RAN’s Authority also owns and manages an multi‑purpose berth eight-hectare cargo storage facility on the south side of Twofold Bay, adjacent to the RAN multi-purpose berth.

Port of Eden • 79 80 Port Authority of New South Wales Annual Report 2019/20 Pacific Explorer callsinto Eden’s new cruise wharf of Eden, measuringin withanoverall lengthof311.1 metres. 2020 –QueenElizabeth.Voyager of theSeasislargest shipto ever visitPort Voyager of theSeas,Explorer Dream andSeven SeasNavigator –andoneinMarch Five of those 18cruiseswere maidenvessels, withfour inFebruary 2020 –Pacific Aria, In 2019/20, 18cruiseships visited SnugCove, 20percent more thanin2018/19. Cruise shipvisitsto Port ofEden, 2019/20 and eightharbourremovals. There were 96 piloted movements during the year comprising 44 arrivals, 44 departures and drybulkvessels (18visits) exporting logsandwoodchips from theANWEfacility. The largest portusersin2019/20 were theRAN(30visits), fishing vessels (27 visits) above theprevious year. The total numberofvessel visitsto Eden during2019/20 was 106,whichwas 19 per cent Total vessel visits(trade andcruise) to Port ofEden, 2019/20 15.2 Note: Includesvisitsat both Port Authority’s berthsandprivately owned terminals. Eden Eden Summary review ofoperations JULY JULY 0 4 AUG. AUG. 0 11 SEPT. SEPT. 6 2 OCT. OCT. 0 5 NOV. NOV. 2 7 DEC. DEC. 11 2 JAN. JAN. 5 1 FEB. FEB. 11 8 MAR. MAR. 13 3 APR. APR. 0 5 MAY MAY 14 0 JUNE JUNE 14 0 TOTAL TOTAL 2019/ 2019/ 20 20 106 18

TOTAL TOTAL 2018/ 2018/ 19 19 89 15

15.3 NSW bushfires Jointly funded by the Australian Government, NSW Government and Port Authority provides pilotage services Bega Valley Shire Council, the new to dry bulk ships servicing the private wharf aims to cement Eden’s place on ANWE facility at Jews Head, Twofold Bay. the Australian cruise map and drive economic growth in the region. On 4 January 2020, bushfires incinerated two stockpiles of hardwood woodchips The successful completion of the Eden and the associated stackers and Cruise Wharf marks the beginning of conveyor systems at the facility. The a new chapter in cruise tourism for stacker and conveyor system for pine NSW’s South Coast, providing certainty woodchips, by contrast, was largely for cruise operators to now schedule untouched. The export facility, however, Eden as a destination for their customers. was rendered inoperable by the fire. The breakwater extension and cruise It is estimated that 75,000 tonnes berth were constructed by NSW of woodchips were lost in the blaze, Crown Lands, while the operations and along with 4000 tonnes of hardwood management of cruise vessels in the port logs, plus conveyors, machinery, and a is the responsibility of Port Authority. workshop filled with spare parts and tools. This impacted vessel visits to the Revitalising Eden ANWE facility for the first half of 2020. Harbour Program By May 2020 the mill’s operation has been restored to near full capacity, and the MV To fully realise the value of Port Cattleya arrived in Eden on 12 May 2020, of Eden as a critical maritime hub making it the first vessel to return to for the economy and the surrounding Twofold Bay to service the ANWE facility. community, three other infrastructure projects are being drawn together in the Revitalising Eden Harbour Program 15.4 Capital projects to establish a clear plan for government investment and enable private sector investment. Eden Cruise Wharf Leveraging the investment in the On Sunday 15 September 2019, successful completion of the newly community, local businesses and cruise constructed breakwater extension representatives turned out to see P&O and cruise wharf and the growing Cruises’ 260-metre Pacific Explorer and number of cruise vessels visiting Eden, its 2000-plus passengers sail into Eden. the Program is designed to enable The arrival marked the successful the expansion of port activity and the completion of the Eden Cruise Wharf, tourism and customer experiences that a $44 million project to extend the port’s will ultimately support jobs growth and wharf to allow cruise vessels over 300 economic development in the region. metres in length to berth in Snug Cove for the very first time.

Port of Eden • 81 82 Port Authority of New South Wales Annual Report 2019/20 effective as of30June2020. were equitytransferred to Port Authority to Port Authority. The landandassets the site for the Welcome Centre) adjacent to thecruisewharf(including box, existing breakwater, andland the new Eden Cruisewharf, theberthing Eden. Crown Landsagreed to transfer assets relating to cruiseoperations within is best placed to own andoperate those it is considered that Port Authority of commercial portswithinNSW, As thekey managerandoperator and Environment. and theDepartmentPlanningIndustry (MIDO) ofTransport for NSW (Transport) Maritime Infrastructure Delivery Office by Port Authority withthesupportof Eden HarbourProgram iscoordinated Discovery Centre site. The Revitalising project, whichisfocused ontheexisting and theEden Harboursideactivation Cove, theCruiseWelcome Centre of theSafe Harbourproject in Snug The program bringstogether thedelivery Concept artoftheEden Welcome Centre maritime andfishingindustry. encompass features from Eden’s rich to thelocaltimber industry andwill hardwoods from theregion asatribute cladding willbemadefrom native past anditsfuture. The structure and is intended to actasasymbol ofEden’s as itsAboriginalheritage, thebuilding of fishing, forestry and tourism, as well Celebrating thetown’s mainindustries first floor foroffice space. market stallholders andamenitiesthe The ground floorwillbe for visitors, approximate size of1000square metres. Centre willhave two floors each withan firm, Cox Architecture, the Eden Welcome Designed by award-winning architectural passengers eachyear. to greet upto 100,000 visitingcruise Welcome Centre willbeanew facility popular cruisedestination, theEden As Eden becomes anincreasingly completed cruisewharf. within closeproximity oftherecently the fisherman’s co-op site in Eden Centre, anew buildinglocated on construction oftheEden Welcome works inFebruary 2020 for the Port Authority commenced enabling Eden Welcome Centre The building contract for the Welcome Community support Centre was awarded to local construction company, Rankin Builders, which has Port Authority sponsors local previously worked with Cox Architecture organisations such as Eden Men’s and on Bermagui Fishermen’s Wharf. Port Women’s Golf Clubs, Eden Killer Whales Authority is proud to support this Soccer Club and Pambula Penguins local business. Soccer Club. The construction will be undertaken Community events in two stages. Stage one includes building construction and internal fit-out Port Authority is the major sponsor of the ground floor, anticipated to be of the Eden Whale Festival held in ready for the start of the 2020/21 cruise November every year, a celebration season. Stage two includes the first floor of the migration of humpback and internal fit-out with tenants anticipated other whales along the NSW Sapphire to move in towards the end of 2020. Coast. The festival is an important local community event that attracts tourists The Pambula-based Destination Agency from NSW, Victoria and the ACT. is working with a local historian and other local stakeholders to prepare a Heritage Interpretation Plan by exploring 15.6 The year ahead local stories, narratives and images to incorporate into public art and other In 2020/21, there are 22 scheduled features in the Welcome Centre. Once cruise ship visits booked, including this has been finalised it will be shared several maiden voyages; however, with with the community for feedback. the current global COVID-19 pandemic the year ahead for cruise is uncertain. Timber exports are increasing and it 15.5 Community is expected to be a very busy year for engagement pine log exports given the amount of and sponsorship pine plantations that were burnt during the January bushfires and now require Port Authority is proud to be an salvage harvesting. active member of communities where However, while log exports will be up, it operates. woodchip exports are expected to The business values its relationship be significantly reduced this year due with its various community groups and to the damage to the ANWE terminal continually looks for ways to work with caused by the January bushfires. and understand them better. Port Authority chairs a quarterly Eden Community Consultative Committee meeting. These meetings are attended by representatives from the community and local stakeholders.

Port of Eden • 83 84 Port Authority of New South Wales Annual Report 2019/20 16 tug wharf, apontoon andalarge shed. up to 120metres inlength,plusasmall Wharf, whichcanaccommodate vessels Port Authority owns Goodwood Island stewardship ofPort ofYamba. Authority inNewcastle maintains Master since 1October 2015. Port responsibility oftheNewcastle Harbour Port ofYamba hasbeenunderthe 16.1 the State’s second largest fishingfleet. Northern Rivers andNew Englandregions, andisthehomeportof of the Clarence River innorthernNSW, Yamba serves thewhole Australia’s eastern-most seaportlocated at themouth A Port Authority marinepilotprepares to transfer to avessel off Yamba Port ofYamba Overview or works inacombustible environment). works (any works that could result inafire (refuelling vessels) andlicensing for hot for dangerous goods,bunkering emergency response, permitnotifications functions includingincidentreporting, for Port Safety Operating Licence The Yamba operation isalsoresponsible the port hasadedicated pilotageservice. Operating onacontinuous 24/7 basis, and Pilotage 16.2 navigation services 16.3 Summary review of operations

Trade vessel visits to Port of Yamba, 2019/20

TOTAL TOTAL 2019/ 2018/ JULY AUG. SEPT. OCT. NOV. DEC. JAN. FEB. MAR. APR. MAY JUNE 20 19 Yamba 3 8 3 0 1 1 2 1 2 2 2 5 30 38

The total number of vessel visits to Yamba during 2019/20 was 30, 21 per cent lower than in 2018/19. Tugs and vessels moving to Goodward Island for repairs accounted for most of the vessel calls.

Yamba Oil Spill Exercise, November 2019 Port Authority employees conducted an oil spill equipment familiarisation exercise with staff from Yamba and Newcastle, together with local port stakeholders and emergency response organisations.

16.4 Port development There were no specific development activities in 2019/20.

Port of Yamba • 85 86 Port Authority of New South Wales Annual Report 2019/20 17.1 17 Port Authority’s visionfor sustainability is: the organisation. well asto embedsustainability across pride in,andownership of, theplanas help ensure ourpeoplehave asenseof stakeholders. This was doneinorder to of employees, aswell askey external with alarge anddiverse cross-section involved engagingandcollaborating plan usingaco-design approach, which Port Authority developed asustainability Up to 40,000 humpbackwhalesare estimated to pass by theNSW coastline eachyear tourism andtrade. Wales through facilitating shipping, prosperity for thestate of New South generations, whiledelivering economic help ensure apositive legacy for future and environmental outcomes andto and communities to improve social people, customers, stakeholders to ongoing collaboration withour Port Authority ofNSW iscommitted Sustainability andenvironment Introduction have beenidentified. initiatives withineachopportunityarea could beprogressed andsomeexisting of how eachsustainability initiative identified. Additionally, several examples sustainability initiatives have been 13 opportunities areas and43suggested Within thefour core focus areas, • • • • the organisation: sustainability willbeembeddedacross sustainability focus areas, through which The sustainability planidentifies four core communities andpartnerships. our environment andplaces operations andways ofworking people andculture An operating model, outlining how is acceptable to the local community, the plan will be managed includes: while recognising and optimising Glebe Island and White Bay’s ongoing, long- • tracking progress of initiatives against term status as a working port. agreed targets • managing resources This policy is the first of its kind in Australia and aims to provide certainty • ensuring responsible leadership about noise management for the • monitoring risks and impacts community, port users and other stakeholders. • reporting on sustainability • setting out a framework to develop The Port Noise Policy includes: and deliver new sustainability initiatives • guidelines and explanations of noise to ensure a consistent and structured triggers for individual ships visiting process is followed that aims to deliver Glebe Island and White Bay, and the best possible outcomes. consequences if the ship exceeds those triggers, explained in the draft Vessel A number of sustainability initiatives Noise Operating Protocol already underway are set out below. • guidelines and explanations of precinct-wide landside noise criteria 17.2 Management • a framework to guide future noise of port impacts assessments and planning controls • a goal for gradual long-term reduction Significant infrastructure, such as the of ship noise while at berth. Glebe Island and White Bay port precinct and the Overseas Passenger Terminal, White Bay Cruise Terminal provide substantial benefits to the Noise Mitigation Strategy State. However, these benefits can be accompanied by impacts, such as noise Port Authority continued to implement or air emissions, that can affect those the White Bay Cruise Terminal Noise living and working nearby. In 2019/20, Mitigation Strategy, including the Noise Port Authority continued its focus on Restriction Policy, which commenced managing and mitigating these impacts. formally on 1 October 2018. There are three elements of the strategy Noise being implemented:

Glebe Island and White Bay Noise Attenuation Program Draft Port Noise Policy Noise attenuation involves physical During 2019/20, Port Authority focussed treatments to homes where noise on developing a new Port Noise Policy modelling indicates that average noise for Glebe Island and White Bay. On 15 levels reach or exceed 55 decibels June 2020, this policy was released for at night. The program is designed community and stakeholder consultation, to reduce the levels of noise experienced and is on display until 10 August 2020. at residences in areas affected by cruise ships at White Bay Cruise The draft Port Noise Policy and the Terminal. From January 2020, the Noise associated draft Vessel Noise Operating Attenuation Program was expanded Protocol aim to manage noise from to include residences in the vicinity commercial shipping in a way that of White Bay berth 4.

Sustainability and environment • 87 88 Port Authority of New South Wales Annual Report 2019/20 engine noisehave beenimplemented. measures to significantly reduce the it canbedemonstrated that adequate not ableto berthat White Bay unless subsequently advisedthat theshipwas engine noiseandtheshipowner was One breach hasbeenissued for excessive issued for controllable noise. In addition,three warnings have been announcements ormusicon-deck). relate to controllable noise(public by Port Authority for breaches that one rebate of$11,000 was withheld From 1July2019 to 30June2020, enforces theNoiseRestriction Policy. Port Authority monitors compliance and Bay berth4. extended to includecruiseshipsat White From January2020, thispolicy was at residences. exceed theattenuation eligibilitytrigger restrictions for shipsthat continue to safety) from cruiseships,andincludes public announcements (notrelated to This policy restricts on-deckmusicand Noise Restriction Policy • • • As ofJune2020: quarter of2021. program isanticipated by thesecond Completion ofconstruction for thefull works prepared. have beeninspected and ascope of At White Bay berth4,35 properties completed andsignedoff. properties at White Bay CruiseTerminal treatments hascommenced, with19 of windows andarchitectural with the Project Manager. Installation meetings to discuss thetreatment 45 property owners have attended At White Bay CruiseTerminal, over Direction hasbeen inplace. compliance has beenobserved since the in Sydney Harbour, andthat 100percent relation to theDirection for cruiseships continued to publishcompliance data in Port Authority notes that AMSA has before thevessel’s departure. the vessel arrives at berthuntilonehour system), applyingfrom onehourafter of anapproved exhaust gascleaning equivalent outcome (such astheuse alternative measure that achieves an 0.1 mass percent concentration, oran with asulphurcontent notexceeding vessels inSydney Harbourto usefuel until December 2021. This requires cruise the AMSA, whichhasbeenextended from theintroduction ofaDirection by ship exhaust emission benefitsachieved Port Authority supportsthecontinued on portauthoritynsw.com.au. reports are alsoproduced andpublished is available inreal-time andmonthly speed andwinddirection. The data micrometres indiameter (PM Air quality Cruise Terminal. 4 inadditionto theshipsat White Bay cruise shipsthat visited White Bay berth monitoring was extended to include During thereporting year, noise on thePort Authority website. monthly summarieshave beenpublished Monitoring reports are produced and ongoing noisemanagement. to monitor noiselevels andguide Continuous real-time loggingisused Noise monitoring (SO parameters includesulphurdioxide Terminal, Rozelle. The monitored area adjacent to White Bay Cruise quality monitoring intheresidential Port Authority continued 24/7 air 2 ), particulate matter less than2.5 2.5 ), wind A Port Authority vessel used in training in Port Kembla

On 1 January 2020, the International of Foreshore Beach but a substantial Maritime Organisation (IMO), a United recovery in other parts. Conditions Nations specialised agency, commenced for seagrass have improved in one the implementation of a global sulphur section where sediments have noticeably cap of 0.5 mass per cent concentration, stabilised. There, the patch of Halophila bringing a significant reduction from essentially doubled in area between 2019 the current 3.5 global mass per cent and 2020. Further, the high density patch concentration cap. This was formally of Zostera continued its rapid expansion, adopted in Australia via an amendment with a 10-fold increase in extent since to the Protection of the Sea (Prevention 2017. The findings present strong of Pollution from Ships) Act 1983 (Cth), evidence that the groynes have stabilised and applies to emissions from all ships sediments in this part of Foreshore Beach in Australian waters, including cargo and it bodes well for recolonisation of ships, bulk carriers and other vessels. seagrass in other areas off Foreshore Beach once sediments have stabilised. 17.3 Penrhyn Estuary 17.4 Vehicle and In 2020, Port Authority undertook the third of three years of additional marine fleet seagrass monitoring along Foreshore Port Authority has a fleet of 34 vehicles Beach, Botany primarily to evaluate the and 34 vessels or floating plant in use success of the Foreshore Beach groynes across the six port locations. Four car in improving the habitat for seagrass. pool vehicles are hybrids. The April 2020 survey highlighted a decline of seagrass in some parts

Sustainability and environment • 89 90 Port Authority of New South Wales Annual Report 2019/20 of the exterior ofthefacility. with thecommunity ontheappearance used at thefacility andconsultation solar panelsystem to offsetpower rainwater capture, scoping ofalarge user facility onGlebeIslandincludes The detaileddesignofthemulti- for the works. and regional contractors engaged to stimulate theeconomy withlocal is generating localjobsandhelping Additionally, theconstruction project • • • • The benefits willinclude: (Green BuildingCouncil ofAustralia). 4 star Green Star, Design&As-builtlevel of sustainability initiatives targeted at a Welcome Centre incorporates asuite The detaileddesignoftheEden construction projects. in two significant Port Authority positive sustainability outcomes Work was undertaken onintegrating 17.5 their work to Sydneysiders, withmany took theopportunity to showcase artists, atotal of30remote communities Along withavariety ofNSW regional attended theArt Fair over theweekend. Terminal. More than10,000 people Markets at theOverseas Passenger Fair withFirst HandSolutionsandBlak the second National IndigenousArt In earlyJuly2019, Port Authority hosted Indigenous 17.6 reduced construction waste. and rainwater reuse improved water efficiency and thermal comfort improved acoustic, lighting improved indoorairquality Sustainability Sustainability projects in construction sponsorship and dance performances. of live contemporary andtraditional music two-day event featured avariety line-up NAIDOC theme, ‘Voice Treaty Truth!’ the communities. Reflecting the2019 National outcomes inlocalandremote Indigenous used to drive better healthandeducation produced $619,000 insales,whichwillbe their artandtraditional works. The Fair of the centres virtuallysellingoutof strategic pillars. organisation andwithin Port Authority’s to embedsustainability across the Port Authority will focus oncontinuing in avariety ofinitiatives. Additionally, supported to leadandbecome involved organisation are beingdeveloped and Sustainability advocates across the with itscustomers andstakeholders. opportunities to collaborate andpartner sustainability initiatives andexploring Port Authority willfocus ondelivering Nations Sustainable Development Goals, 2020–25 withreference to theUnited Port Authority’s Sustainability Planfor After commencing development of 17.8 the year. issued against Port Authority during There were no environmental penalties 17.7 Terminal, Circular Quay, Sydney Blak Markets at theOverseas Passenger Environmental The year ahead penalties 18 Heritage

18.1 Overview maintenance management system (CMMS), allowing for improved Port Authority is committed to inspections, preventative maintenance preserving its port heritage and maritime and record keeping. Work has started history. All projects and significant on one of the more significant heritage port maintenance works are assessed items, Hornby Lighthouse on South Head for potential heritage impacts and of Sydney Harbour, which will involve existing heritage assets are inspected a heritage assessment and repair and and maintained. conservation works of this significant and recognisable structure. Under the Heritage Act 1977 (NSW), Port Authority is required to identify, list, Port Authority has completed a review protect and maintain heritage items on of its Register and is currently liaising a Section 170 Heritage and Conservation with Heritage NSW on required changes Register (Register). At present, the to the State Heritage Inventory to reflect Register contains around 50 items, the integration of all of Port Authority’s including items assessed as having State heritage listed assets under one Register and local heritage significance. All Port Authority’s heritage items are listed on the State Heritage Inventory, available 18.2 The year ahead at heritage.nsw.gov.au The year 2020/21 will focus on continuing Port Authority actively inspects and to work with the Heritage NSW on the maintains its heritage assets. The consolidation and updating of the Port Sydney and Botany Bay assets have Authority Register. been integrated into the computerised

Grotto Point lighthouse in Middle Harbour, Sydney

Heritage • 91 92 Port Authority of New South Wales Annual Report 2019/20 businesses. thousands ofjobsand countless of dollarsto theeconomy and supporting ports inAustralia –contributing billions of themost economically significant figures around NSW beinghome to some The videoalsohighlightskey facts and of themarineenvironment. of theworking portsandtheprotection safety ofvessels initsports,thesecurity Authority works 24/7 to ensure the business, thevideohighlightshow Port Featuring employees from across the stakeholders andthewidercommunity. Port Authority isandwhat itdoes,to 2019 to assist incommunicating who A corporate videowas launchedinJuly work of Port Authority New videoshowcases 19.1 Overview 19 Communication highlights shared at yacht clubbriefingsessions. Botany, andimportantinformation was to thepublicinSydney HarbourandPort Information packswere alsodistributed engagements were recorded. 130,000 peopleandmore than21,000 advertisements reached more than – December 2019 to March 2020 –the Commencing inthepeaksailingperiod on Facebook andInstagram. and Port Botany through advertisements recreational boaters inSydney Harbour The socialmediacampaigntargeted message reached thousands. total visitors for 2019 of60,149, thesafety 18,033 peopleonthebusiest day, and attendance ranging from 8000upto instructions andasticker. With thedaily packs containing aflyer, HarbourMaster a videoalongwithdistribution ofsafety in theharbour. This was achieved through boaters needto steer clearoflarge ships spread themessage onwhy recreational Roads andMaritimeServices stall to Port Authority employees joinedthe a clearlineofsightto recreational boats, cruise andcargo shipsnotalways having The campaign’s key message was about clubs around Sydney inSpring2019. 2019 andinsocialmediaat sailing released againat theSydney Boat Show for recreational boaters in2018, itwas ‘Look safety Out,ShipsAbout’ campaign Following thesuccessful launchofthe for recreational boaters Safety campaign ‘Look safety Out,Ships About’ campaign Social media Port Authority website Port Authority continued to promote In the reporting year 2019/20, activities across the ports of NSW and there were nearly 482,000 visits to increase public understanding of Port to portauthoritynsw.com.au, resulting Authority’s work through its Instagram in 2.2 million page views. account @portauthorityNSW. During 2019/20, 51 per cent of user As of 30 June 2020, the account had sessions were via desktop computers, organically gained nearly 2000 followers. 41 per cent via mobile devices, and 8 per cent via tablet devices. In the reporting Port Authority’s LinkedIn account gained year 2019/20, 45 news and feature over 2000 followers during 2018/19, stories were published to the website. reaching a total follower base of nearly 6500 by 30 June – an increase of 20 per The functionality of an alert banner was cent on the previous year. During this also introduced on the website. The alert time, 77 news updates were posted. banner can be customised to a specific port or applied to the entire site to better The increase in social media activity inform stakeholders of major activities during 2019/20 has allowed Port occurring at and around the ports. Authority to better engage with The banner was most recently used community, to showcase its role and for the purpose of notifying mariners responsibilities and to advocate for the of potential debris as a result of the value of the working port. loss of containers from APL England on 24 May 2020. A refresh of the website also commenced in 2020. This will add more dynamic imagery, videos and icons throughout the site while providing improved usability and increasing readability, in particular to the site’s navigation and landing pages.

Communication highlights • 93 94 Port Authority of New South Wales Annual Report 2019/20 portauthoritynsw.com.au/newsletter. Subscribe to Port Matters at cent for the government sector. to a benchmark average of38.5per Matters is 58.5percent, compared The average openrate for Port stakeholders. community, industry andgovernment Subscribers are amixofcustomers, of 35.5 percent ontheprevious year. subscriber baseof1472 –anincrease during 2019/20 to reach atotal Port Matters gained386subscribers • • • The features for 2019/20 were: on a key aspectofPort Authority’s work. video andrelated stories that focus Each issue leadswithamainfeature, of Port Authority. awareness oftherole andresponsibilities that educates, informs andincreases mix ofnews, features andvideocontent Each editionofPort Matters contains a to the impactsofCOVID-19. The Autumn editionwas pauseddue stakeholder newsletter Port Matters. published three issues ofitsquarterly This financial year, Port Authority Port Matters Stakeholder newsletter: of the sea. welfare inNSW –theunsungheroes Winter 2020: Supportingseafarer air traffic control ofthesea Summer 2019: Vessel Traffic Services – in NSW meeting thewomen keeping shipssafe Spring 2019: Women inmaritime– Cargo News. Industry Awards 2019, runby Daily the Australian ShippingandMaritime NSW Awards ofExcellence 2019 and events includingtheSurfLife Saving a numberofcommunity andindustry In addition,Port Authority sponsored on the value ofportsinNSW. and educate museumattendees awareness aboutkey portoperations that provide opportunitiesto buildbrand involves a dedicated space withexhibits maritime industry, thesponsorship to promote andadvocate for the Museum. Through ashared goal with theAustralian National Maritime commenced athree-year sponsorship This reporting year Port Authority and events that share common goals. involvement withsupportingbusiness Port Authority hashadalong Sponsorship for our customers andindustry. with ourstakeholders andadvocating our port communities, collaborating more by buildingstronger relationships with be to grow thePort Authority brand A key focus for theyear aheadwill 19.2 The year ahead Aerial view of Newcastle Harbour 96 Port Authority of New South Wales Annual Report 2019/20 Notes to thefinancial statements Statement ofcashflows Statement ofchangesinequity Statement offinancialposition Statement ofcomprehensive income Independent auditor’s report Director’s declaration For theyear ended30June2020 Financial statements (Trading asPort Authority ofNew SouthWales) Newcastle Port Corporation 18 Statement oflandholdings Note 25 Note 24 Note 23 Note 22 Note 21 Note 20 Note 19 Note 18 Note 17 Note 16 Note 15 Note 14 Note 13 Note 12 Note 11 Note 10 Note 9 Note 8 Note 7 Note 6 Note 5 Note 4 Note 3 Note 2 Note 1 Financial statements Events after thereporting period Related partydisclosures Consultancy fees Contingencies Commitments Financial riskmanagementobjectives andpolicies Fair value measurement ofnon-financial assets Defined benefitsuperannuation schemes Equity Dividend payable Interest bearingliabilities Provisions Trade andotherpayables Intangible assets Investment property Leases Property, plantandequipment Trade andotherreceivables Cash andcashequivalents Income taxequivalent expense Other (losses) gains Expenses Revenue Summary ofsignificantaccounting policies Corporate Information 104 106 105 103 102 169 106 120 166 143 143 168 145 107 136 165 156 138 158 126 135 167 167 122 137 98 97 114 141 116 131 112 117 Director’s declaration For the year ended 30 June 2020

Newcastle Port Corporation (Trading as Port Authority of New South Wales)

DIRECTORS’ DECLARATION For the year ended 30 June 2020

In the opinion of the Directors of Newcastle Port Corporation (trading as Port Authority of New South Wales):

1. Pursuant to section 41C of the Public Finance and Audit Act 1983, the accompanying financial statements and notes:

(a) exhibit a true and fair view of the financial position of Newcastle Port Corporation at 30 June 2020 and of its performance, as represented by the results of its operations and its cash flows for the year ended on that date.

(b) comply with applicable Australian Accounting Standards and Australian Accounting Interpretations, other mandatory and statutory reporting requirements including the Public Finance and Audit Act 1983, the Public Finance and Audit Regulation 2015 the State Owned Corporations Act 1989.

2. There are reasonable grounds to believe that Newcastle Port Corporation will be able to pay its debts as and when they become due and payable; and

3. We are not aware of any circumstances at the date of this declaration that would render any particulars included in the financial statements to be misleading or inaccurate.

Signed in accordance with a resolution of the Directors.

Chairman Chief Executive Officer and Director Robert Dunn Philip Holliday Date: 8 September 2020 Date: 8 September 2020

2

Financial statements • 97 98 Port Authority of New South Wales Annual Report 2019/20 For theyear ended30June2020 Independent auditor’sreport 30 Comprehensive Income for the year ended In my opinion, the financial statements: information. ended, notes comprising a summary of significant accounting policies and other explanatory To Members of the New Port Authorityof • • standards are described in the ‘Auditor’s Responsibilities for the Audit of Statementsthe Financial I conducted my audit in accordance with Australian Auditing Standards. My Opinion Basisfor My opinion should be read in conjunction with the rest of this report. • • I auditedhave the accompanying financial statements Opinion audit opinion. I thebelieve audit evidence I obtainedhave is sufficient and appropriate to provide abasis for my • • • I fulfilledhave my otherethical responsibilities in Parliament New I am independent of the Corporation section of my report.

June audit opinion. is sufficient obtained Ihave evidence audit the I believe • • • New Parliament with accordance in responsibilities ethical other my I have fulfilled • • in am I report. my of section thein described are standards the under responsibilities My Standards. Auditing Australian with accordance in audit my I conducted for Basis this r of rest the with conjunction in read be should opinion My • • • financial the opinion, In my comprising S 30 year the for ended Income of Authority I Opinion of the Members To

have audited the accompanying financial financial accompanying the audited have

tatement of tatement South the Public Finance andAudit Regulation 2015 Australian Accounting Standards its financial performance and its cashflows for the year then ended in accordance with Professional Accountants Accounting Professional and Ethical Standards Board’s APES 110 ‘Code of Ethics for AustralianAuditing Stand in are accordance with section 41B of the PublicFinance and Audit Act 1983 give precluding the mandating the Auditor providing that Parliament,only andnot the executive government, canremove an

South 2020 Professional Accountants’ ( Accountants’ Professional for Ethics of ‘Code 110 APES Board’s Standards Ethical and Professional Accounting Standards Auditing Australian Stand Reporting Financial International with comply 2015 Audit Regulation and Public Finance the are Standards Accounting Australian with accordance in ended then year the for and flows its cash performance its financial give precluding the the precluding the mandating Auditor that providing only Parliament, dependent of the of dependent

a true and fair view of the financial posit pro Wales

in accordance with sec accordance in

- Newcastle Port Corporation (trading asPort Authority ofNew , the Statement, theesChang of inEquity and the Statement of Cash Flows for the year then Newcastle Port Corporation (trading as Port Authority of Authority of Port as (trading Corporation Port Newcastle

a true and fair view of the financial position of the of position the financial of view fair and true a promotes independence by ensuring the the ensuring by independence promotes General a Wales motes independence byensuring the New Opinion

summary summary C - New General hanges inhanges

are not compromised in their roles by:

South

Auditor are not compromised in their roles by: in roles their are not compromised

Auditor South New

Auditor Auditor

South

of of Wales

Corporation South INDEPENDENT AUDITOR’S REPORTINDEPENDENTAUDITOR’S

E - s Wales) - General General ignificant ignificant quity statements INDEPENDENT AUDITOR’SINDEPENDENT REPORT - - Wales General General ards

) (the Corporation) ) (including Independence Standards)

June

‘ Wales Auditor’s Responsibilities for the Audit of the Financial Statements the Financial of the Audit for Responsibilities Auditor’s

and tion 41B of the of 41B tion

APES 110). APES (the

in accordance with the requirements of the:

from providing non as auditor of public sectoragencies 2019 Parliament

a

in accordance with the requirements of the: of requirements the with in accordance the S

and not the executive government, can remove an an can remove government, executive the notand

from providingnon from ccounting

as auditor of public sector agencies publicsector of auditor as Parliament Corporation),which comprise :

, 30 the tatement of of tatement statements statements June

S accordancewith APES 110.

tatement of of tatement p Public Finance and Audit Act 1983 Act Audit and Finance Public , which comprise which , ion of

olici 2020 . Auditor

Auditor of es C of of

-

the N the

, the Statement of Financial Position asat audit services. ash and appropriate to provide a basis for for my a basis provide to appropriate and and other explanatory explanatory and other

- Newcastle Port Corporation (trading as Portas (trading Corporation Port Newcastle audit services. audit - ards as disclosed in Note 2. Note in disclosed as ards

General Corporation asat F - F

General inan ewcastle Port Corporation (trading as Corporation lows eport. cial cial

APES 110 APES the Statement of Comprehen of the Statement

f

or the year ende then or the ’ (APES’ 110). and the Audit Office of

P and the Audit Office of of Audit Office the and the Statementthe of

osition as at 30 at as osition

New

as atas

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South 30 30 information

Wales) June

June (PF&A Act) and

(PF&A Act) and and Act) (PF&A

Wales

June

, and of2020, and

2019

d , .

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2019 , and of of and , sive sive ’ ,

the the

Independent auditor’s report continued

Key Audit Matters Key audit matters are those matters that, in my professional judgement, were of most significance in my audit of the financial statements for the year ended 30 June 2020. These matters were addressed in the context of my audit of the financial statements as a whole, and in forming my opinion thereon, I do not provide a separate opinion on these matters.

Key Audit Matter How my audit addressed the matter

Impairment of property, plant and equipment At 30 June 2020, the Corporation’s statement of Key audit procedures included the following: financial position reported $435 million in property, • obtained an understanding of management's plant and equipment. This is measured at fair value approach to assessing impairment of property, using the market and cost approach valuation plant and equipment techniques less any impairment. • reviewed whether the DCF model incorporated all The Corporation calculates the property, plant and key assumptions and inputs relevant to equipment ‘value in use’ to measure the extent of any assessing impairment of property, plant and impairment loss. The ‘value in use’ is based on a equipment and met the requirements of discounted cash flow (DCF) model. Australian Accounting Standards I consider this to be a key audit matter because: • reviewed the reasonableness of the key • property, plant and equipment is financially assumptions and sensitivity of the conclusions to significant to the statement of financial position changes in the assumptions

• the DCF model used for impairment assessment • reviewed the calculation in the DCF model. is complex and involves significant judgements and assumptions • changes in assumptions, such as the discount rate, terminal value, demand growth expectations, price and cost assumptions, can significantly affect the carrying value of property, plant and equipment.

Valuation of defined benefit superannuation liabilities At 30 June 2020, the Corporation’s statement of Key audit procedures included the following: financial position reported defined benefit • obtained an understanding of the processes and superannuation liabilities totalling $14.5 million. This key controls in place supporting the defined liability balance is provided to the Corporation by the benefit superannuation liability calculation Administrator of the SAS Trustee, based on an • assessed the completeness and accuracy of the independent actuarial assessment. membership data used in the model I considered this to be a key audit matter because: • with the assistance of actuarial experts, reviewed • the defined benefit superannuation liability is the methodology and key assumptions for financially significant reasonableness • the underlying liability valuation model (the • assessed qualifications, competence and model) is complex due to the significant degree objectivity of actuarial experts of judgement required to determine key • evaluated the adequacy of financial statement assumptions used to value the liability disclosures against the requirements of • the total value of the liability is sensitive to minor applicable Australian Accounting Standards and changes in assumptions. Treasury Directions.

Further information on the significant actuarial assumptions and sensitivity analysis is disclosed in Note 18.

Financial statements • 99 100 Port Authority of New South Wales Annual Report 2019/20 Independent auditor’s report I information,report thatmust I fact. If, onthe based work misstated. financial statements or my knowledge information and, in doing so, consider whether In connection with my audit of th express any form My In preparing the financial statements error.or presentation of the financial statements that are for such internal control as the directors determine is ne using the going concern basis of accounting. ability to continue as agoing concern the other informathe other Corporation are responsible for the other i addition to the financial statements and myIndependent Auditor’s Report thereon. with Australian Accounting Standards, the PF&A Act andthe and Assurance Standards Board website at: A description of my responsibilities forthe audit of the financial statements is located at t based onthe financial statements. in aggregate, they could reasonably be expected to influence the economic decisions users take Misstatements can arise from fraud or error. Misstatements are consider accordance with Australian Auditing Standards will always detect material misstatements. Reasonable assurance is a highlevel of assurance, but does notguarantee an audit conducted in • • My objectives areto: Responsibilit Auditor’s Th Director The Corporation’s annual report for the year ended InformationOther description forms part of my auditor’s report.

have nothinghave to report in this regard. e directors responsibleare for the preparation andfair presentation of the financial opinion on the financial material misstatement, whether due to fraud or error issue anIndependent Auditor’s Report including my opini obtain reasonable assurance about whether the financial statements asawhole are

’ s Responsibilit tion I havetion comprise received the of assurance conclusion onthe other i

I have performed, I conclude there isa material misstatement of the statements ies ies e financial statements, my responsibility isto read the other

for the Audit of the Financialthe ofthe Statementsfor Audit

for theStatementsfor Financial , , disclosing, applicable,as matters related to going concern and

the directors obtained

does notcover the other information. Accordingly, Ido not nformation

continued

www.auasb.gov.au/auditors_responsibilities/ar6.pdf

the otherinformation in

free from material misstatement, duewhether to fraud

the audit, or are responsible for assessing responsibleforare the Directors Declaration 30 . At the date of this Independent Auditor’s Report,

June cessary to enable the preparation and fair nformation.

2020 State Owned Corporations Act 1989 otherwise on.

includes other information in

is materially inconsistent with the

. ed material if, individually or

appears to be m

The Corporation’

in accordance

directors of the he Auditing aterially other

free from . s

The and Independent auditor’s report continued

The scope of my audit does not include, nor provide assurance:

• that the Corporation carried out its activities effectively, efficiently and economically • about the security and controls over the electronic publication of the audited financial statements on any website where they may be presented • about any other information which may have been hyperlinked to/from the financial statements.

Lawrissa Chan Director, Financial Audit

Delegate of the Auditor-General for New South Wales

8 September 2020 SYDNEY

Financial statements • 101 102 Port Authority of New South Wales Annual Report 2019/20 For the the For S (Trading as Port Authority of New South Wales) NewcastlePort Corporation For theyear ended30June2020 Statement ofcomprehensive income The accompanying notes form a notes The accompanying tatement equivalent expense equivalent /(expense) income comprehensive Other the for profit Net expense equivalent tax Income expense tax equivalent income Profit before Other equipment plant and of property, on sale Net gain expenses Total costs Finance expenses Other expenses amortisation and Depreciation expenses related Employee Expenses revenue Total revenue Other management port from Revenue Revenue operations Continuing the for income comprehensive Total the for income comprehensive Other and equipment plant of property, on revaluation expense equivalent tax Income equipment and plant on property, gain revaluation Fair value actuarial equivalent tax Income actuarial Superannuation to reclassified be not will Items that

(losses)

year ended 30 June 2020 June 30 ended year gains /( gains

of comprehensive income

/

gains

losses year

(expense) / (expense)

)

gains / gains

part of the financial financial the part of

( losses benefit on benefit

net result year

year )

, net of income tax income of , net : superannuation superannuation

statements.

1 1 1 1 Note 7 7 7 7

4 4 4 4 3 3 6 5 (a) (a) (b) (b)

177,402 152,691 164,491 (2,065) (1,921) 56,156 24,666 77,470 24,711 15,778 10,825 12,746 6,199 4,953 6,884 (340) 20 $000 (58) 192 175 20

(11,982) 176,094 155,013 152,980 (7,068) (5,175) 5 22,620 7 21,081 10,952 18,020 23,195 1,741 4,602 4,017 1,884 3,595 (565) $000 2019 35 46 6

NewcastleStatement Port of Corporation financial position (TradingAs at 30 Juneas Port 2020 Authority of New South Wales) Statement of financial position As at 30 June 2020

2020 2019 Note $000 $000 ASSETS Current assets Cash and cash equivalents 7 17,351 17,015 Trade and other receivables 8 16,600 14,685 Total current assets 33,951 31,700

Non-current assets Receivables 8 105,648 97,992 Property, plant and equipment 9 435,455 441,617 Right of use assets 10 11,435 - Investment property 11 8,000 7,700 Intangible assets 12 2,290 1,353 Deferred tax equivalent assets 6 13,538 14,209 Total non-current assets 576,366 562,871

TOTAL ASSETS 610,317 594,571

LIABILITIES Current liabilities Trade and other payables 13 23,581 19,184 Interest-bearing liabilities 15 14,512 - Income tax equivalent payable 6 3,333 2,111 Dividend payable 16 13,500 9,000 Provisions 14 22,217 20,085 Total current liabilities 77,143 50,380

Non-current liabilities Other liabilities 13 1,955 2,068 Interest-bearing liabilities 15 140,239 144,177 Deferred tax equivalent liabilities 6 49,570 53,092 Provisions 14 2,636 2,808 Post-employment benefits 18 14,488 20,038 Total non-current liabilities 208,888 222,183 TOTAL LIABILITIES 286,031 272,563 NET ASSETS 324,286 322,008

EQUITY Contributed equity 17 165,768 165,768 Asset revaluation reserves 17 60,223 60,089 Retained earnings 17 98,295 96,151 TOTAL EQUITY 324,286 322,008

The accompanying notes form a part of the financial statements.

7

Financial statements • 103 104 Port Authority of New South Wales Annual Report 2019/20

The accompanying notes form a part of the financial statements. financial the part of form a notes The accompanying For theyear ended30June2020 Statement ofchangesinequity the For Statement of (Trading as Port Authority of New South Wales) NewcastlePort Corporation

at Balance declared Dividend transfer equity from assets net in Increase as owners their capacity in owners with Transaction the for income comprehensive Total income comprehensive Other the for Net profit 2019 June at 30 Balance declared Dividend as owners their capacity in owners with Transaction year the for income comprehensive Total Other year the for Net profit Balance at 1 July 2018 July at1 Balance Balance at 1 July 201 July at1 Balance comprehensive income comprehensive year ended 30 30 ended year 30 June 2020 June 30

year year

changesin equity

9

1 1

7 7 June 2020 1 1 (a)&( (a)&(b) Note 7 7 1 17 1 ( (b) 6 6

b

)

b

)

Contributed Contributed

165,768 165,768 165,768 165,768

equity $000 ------

revaluation revaluation

reserve 60,089 60,089 58,770 60,223 Asset 1,319 1,319 $000 134 134 - - - - -

Retained Retained earnings (13,500) ( (8,387) 96,151 96,151 18,020 95,518 98,295 15,644 10,825 9 9,633 4,819 ,000) $000 -

(13,500) 322,008 322,008 320,056 324,286 ( (7,068) 10,952 18,020 15,778 10,825 9 4,953 Total ,000) $000 - 8

StatementNewcastle Port of Corporation cash flows For(Trading the year as ended Port 30 Authority June 2020 of New South Wales) Statement of cash flows For the year ended 30 June 2020

2020 2019 Note $000 $000 Cash flows received from operating activities Receipts from customers 184,208 183,690 Payments to suppliers and employees (143,159) (141,440) Interest received 116 309 Finance costs paid (5,774) (2,390) Payment of government guarantee fees (1,120) - Income tax equivalent paid (5,673) (6,932) Net cash flows received from operating activities 7(a) 28,598 33,237

Cash flows used in investing activities Payments for capital expenditure (16,845) (12,669) Proceeds from sale of property, plant and equipment 291 139 Net cash flows used in investing activities (16,554) (12,530)

Cash flows used in financing activities Repayments of lease liabilities (2,708) - Proceeds from borrowings - 145,000 Dividends paid (9,000) (200,000)

Net cash flows used in financing activities (11,708) (55,000)

Net increase (decrease) in cash and cash equivalents 336 (34,293) Cash and cash equivalents at the beginning of the financial year 17,015 51,308 Cash and cash equivalents at the end of the financial year 7 17,351 17,015

The accompanying notes form a part of the financial statements.

9

Financial statements • 105 106 Port Authority of New South Wales Annual Report 2019/20 Note 1 For theyear ended30June2020 Notes to thefinancial statements The financialstatementsThe of Note 1. theNotes to (Trading as Port Authority of New South Wales) NewcastlePort Corporation

initially30 days for 15On March 2020, the Federal Government’s temporary ban on the entry of cruise ships of itsof Busin ess ContinuityPlan. throughout the period. On 6 March 2020, a crisis management team was established as part Wales in in cruiseall ship ban, impact on the Corporation’s business and revenue. As a Harbour, The Corporation is responsibleall for commercial marine functions in the ports of Sydney Principal sector entity for financial reporting purposes. Australia Governmentunder the The Chain Co regulator of the Hunter Coal ExportFramework and a participantin the HunterValley Coal and storage of dangerous goods within the ports’ jurisdiction emergency response and administering the legislation concerning the handling, transportation safety functions include the provision and maintenance of aids to navigation, marine pollution services, and port safety functions as prescribed in Portthe Safety Operating Licence including statutory the Harbour Master’s function, provisionthe of pilotage and navigation Terminal (OPT) at Circular Quay and the White Bay Cruise Terminal (WBCT) and related assets, pre SydneyIn Harbour, the Corporation is responsible for the managementof business activities Wales accordance with a resolution of the COVID business activities include management of dry bulk facilities at Glebe Island. COVID and the country has activat 27On February 2020, the Australian Federal Government declared home. chairs,printers, computer monito include operations staff, Corporationthe commenced to its test work from home capabilities. antibacterial gel and wipes; disposable glov Personalof Protective Equipment namely the provision face of masks; eye protection; marine operations staff in the execution of their duties, primarily by providing increased levels earlyIn February 2020, the Corporation commenced measures to a

“no Corporation

, Australia, The Corporation also increased levels of cleaning using existing external contractors d - - (the ‘Corporation’)

- 19 19

show”. normalIn circumstances, under the Port Charges and cruise booking policy, The. Corporation assessed its status and determined that it is profit’a ‘for public - reimbursing staff for the additional equipment purchased such as laptops, office

Port Botany, Newcastle Harbour, Port Kembla, Port of Eden and Port of Yamba, ordinator. activities

.

Pandemic Corporate information Corporate Information

with its principal office at is astate is financial statements call and

s in Corporation’sthe booking system dominantly cruise activities itsat two facilities, the Overseas Passenger subsequently extended State Owned Corporations Act 1989 - Newcastle PortCorporation tradingas for the owned corporation, ed

the Australian Health Sector Emergency Response Plan for rs and other devices, in order to facilitate them working from year end D irectors on

L evel 4, 20 Windmill Street, Walsh Bay, NSW2000 ed

es and protective garments.nonFor

twice

incorporated by the New South Wales State 8 September 2020 30 June20 to to 1 7 resultof th December were were 20 and is domiciled in New South . The. Corporation is also the

are

Port Authorityof New South either cancelledresulted or strengthen its protection of .

authorised for issue in COVID e Federal 2020

has had the mostthe had has

at Rozelle - 19 Government a pandemic a pandemic - marine . Other . Port Port . This This 10 ,

any cancelled or no-show calls within six months of the vessel call would allow the Corporation to levy a cancellation fee. This fee is calculated as the vessel’s stated passengers capacity multiplied by the Corporation’s current site occupation fee per passenger. However, for any cancellation or no-show as a result of the Federal Government ban on cruise ships calling to Sydney Harbour and Eden, neither the Corporation nor the cruise operators are able to perform the contracted service. Accordingly, the contracts have been frustrated, leading to a termination of each of these contracts for the provision of cruise facilities in Sydney Harbour and Eden and an inability to recover cancellation fees. In addition, the Corporation will also not receive navigation and pilotage fees which would normally be derived from these cruise calls. Other trade revenue, particularly container and bulk fuel vessels, also declined due to COVID-19.

With the effective shut down of cruise operations as a result of the Federal Government ban, retail tenants made up of cafés and restaurants at the OPT and the WBCT were also impacted by the NSW Government announced closure of all non-essential services from 23 March 2020. The Corporation has provided all retail tenants at the OPT and the WBCT with rental relief effective 22 March 2020. In addition, the Federal Government released the National Cabinet Mandatory Code of Conduct – SME Commercial Leasing Principles, the purpose of which is to impose a set of good faith leasing principles upon landlords and tenants impacted by COVID-19. As a result, the Corporation has also provided rental relief to eligible tenants applying these principles.

The Corporation has assessed these impacts to the business and continues to consider that the COVID-19 pandemic will not impact the Corporation’s ability to continue to operate as a going concern.

NoteNote 2. 2 Summary of significant of significant accounting accounting policies policies

Basis of preparation

The financial statements are general purpose financial statements which have been prepared in accordance with:

(i) Australian Accounting Standards and Australian Accounting Interpretations; (ii) the Public Finance and Audit Act 1983; (iii) the Public Finance and Audit Regulation 2015; (iv) the State Owned Corporations Act 1989; and (v) NSW Treasurer’s Directions.

Except for cashflow information, the financial statements have been prepared on an accrual accounting basis using historical cost accounting conventions unless otherwise stated. Assets and liabilities stated at fair value include property, plant and equipment, and investment property.

Except when an Australian Accounting Standard permits or requires otherwise, comparative information is disclosed in respect of the previous year for all amounts reported in the financial statements.

Where necessary, comparative figures have been reclassified to conform to the changes in presentation made in the financial statements.

The financial statements are presented in Australian dollars, the Corporation’s functional currency. All values are rounded to the nearest thousand dollars ($000) unless otherwise stated.

11 Financial statements • 107

108 Port Authority of New South Wales Annual Report 2019/20 Note 2 January 2019. Impactof the provisions in standard.the Comparative information has been not restated, as permitted under specific the transitional onlywhere th Corporation has AASB 16 they becamethey applicable Australian Accounting Standards Board (AASB) recognised at the commencement of lease. the The only e AASB an 16, asset (the right to use leasedthe item) and a financial liability to pay rentals are existed under AASB 117) liabilities lease arrangements AASB 16 introduces new or amended requirements with respect leaseto accounting. For (i) do not have an impact on the financial statements of the Corporation. Several other amendments and interpretations T Australian Accounting Interpretations The financial statements comply with Australian Accounting Standards Compliance IFRSwith monthsless or and do notcontain a purchase optio payments for lease contracts that, at their commencement date, have a lease term of 12 value leases as issuedby the InternationalAccounting Standards Board Appl for which the underlying isasset valued at $10,000 or Newaccounting standards andinterpretations Newaccounting standards and interpretations

Finance lease receivables will be however reviews the classification of sub The he Corporation has adopted

   

AASB 16 Leases AASB 16 ing ying accounting for lessors under AASB 16 does significantlynot change. The Corporation

Recognises right position, initially measured at the present value of future lease payments; Recognises depreciation ROUof assets and intereston lease liabilities in Recognises rental payments as operating lease rental expenses of cashof flows. financing activities) and interest (presented within operating Separates the amounttotal of cash paid into a principal portion (presented

AASB 16 being recognised on the statement of financial position, as the disti continued Leases . The Corporation. elected use to thepractical expedient to expense lease accounting standard e current year is adjusted as though AASB 16 had always been applied. It replaces AASB 117 adopted

(AASB 16) (AASB 16) for all where

- during the year.

of operating AASB 16 through application of the partial retrospective approach,

between operating and financial leases is largely removed.Under - use (ROU) assets and lease the Corporation is the lessee, AASB 16 will result in most lease

is effective for reporting periods commencing onafter or 1 new and amended Australian Accounting Standards and recognised for sub

leases, the Corporation:

Leases and International Financial Reporting Standards (IFRS) a

i n

- leases in which theCorporation isa lessor. reductionle of profit or loss , and related Interpretations. – apply for the first time in this financial year, but Interpretations

issued andeffective

n (short - leases reclassified as finance leases. less ;

and aseliabilities and therefore, reduces liabilities in thestatement of financial

when new(low -

xceptionsare short -

(IASB) termleases), and lease contracts

asoutlined below .

activities)instatement the

On 1 July 2019, t - value assets). , which , include term and low and term nction profit or loss or profit as and when when and as

(which (which within within

he he 12

- ;

Note 2 continued

Adjustments recognised on the adoption of AASB 16

On adoption of AASB 16, the Corporation recognised lease liabilities in relation to leases which had previously been classified as operating leases under the principles of AASB 117 Leases. These liabilities were measured at the present value of the remaining lease payments, discounted using the rate implicit in each lease. Where there is no such rate in a lease agreement, a lessee uses their incremental borrowing rate as of 1 July 2019. The weighted average lessee’s incremental borrowing rate applied to the lease liabilities on 1 July 2019 was 3.21%.

Refer to note 10 for the accounting policy of lease liabilities.

The lease liabilities as at 1 July 2019 can be reconciled to the operating lease commitments as of 30 June 2019 as follows:

$000 Operating lease commitments disclosed as at 30 June 2019, GST excluded 13,885 Discounted using the Corporation’s incremental borrowing rate of at the date of initial application (1,463) Add (Less): - Short-term and low value leases not recognised on the statement of financial position (8) - Adjustments as a result of a different treatment of extension and termination options 1,937 - Adjustments relating to changes in the index or rate affecting variable payments 177 Lease liabilities recognised as at 1 July 2019 14,528 Of which are: Current lease liabilities 2,666 Non current liabilities 11,862 14,528

Refer to note 10 for the accounting policy of ROU assets.

The Corporation has used the practical expedient within AASB 16 which allows the ROU asset values to be taken as equal to lease liabilities at the transition date.

As such, on the initial application date, 1 July 2019, there was no adjustment required to the retained earnings because no prepaid or accrued lease payments or onerous lease contracts were identified.

13

Financial statements • 109 110 Port Authority of New South Wales Annual Report 2019/20 Note 2 The ROU assets relate to the following types of assets: identified any service concession arrangement as a grantor based on a preliminary accounting for the arrangement from the grantor’s perspectiv service concession arrangement by a grantor that is a public sector entity by prescribing the reporting periods beginning on or after 1 January 2020. It addresses the accounting for a AASB 1059 Service Concession Arrangements: Grantors will be effective and app Service ConcessionAASB 1059 Arrangements: Grantors relevant to the Corporation) and interpretations is set out below: The Corporation’spreliminary for the financial year ended 30 June 2020. been issued or amended butnot are yet effective have not been adopted by the Corporation Australian Accounting Standards and Interpretations, issued by the AASB, that have recently expedients permitted by standard:the applyingIn AASB 16 for the first time, the Corporation has Position The change in accountingpolicy affected the followinginitems the Practical expedients applied The net impact on retained earnings on 1 July 2019 is n Newaccounting standards andinterpretations Determining whether an Arrangement contains a Lea The Corporation has elected not to re Corporation relied on its assessment made applying AASB 117 date of initial application. Instead, for contracts entered before the transition date the Total ROU assets Plant Wharves,and jettiesbreakwaters Landand buildings       

characteristics; The use of a single discount rate to a portfolio of leases with reasonably similar ROU assets Reliance on previous assessments on whether leases are onerous; Lease liabilit Lease months as at 1 July 2019 as short The accounting for operating leases with a remaining lease term of less than 12 of initial application; and The exclusion of initial direct costs for the me to extendto or terminatethe lease. The use of hindsight in determining the lease term where contractthe contains options

on 1 July 2019: continued ies

–

increased by

–

increasedby $14,5 2

assessment of the impact of new standards (to the exten

$14,52 -

assess whether a contract is,

- term leases; 8

,000 8 – ,000

issued but not yet effective

asurement of the ROU asset at the date se

. il. il.

30 Jun

e. The Corporation has not usedfollowing the practical Leases

or contains a lease at the 11,435 10,513 StatementFinancial of

$000 2020 401 521

and Interpretation4

1 Jul licable for 14,528 13,541 $000 2019 310 677 14

t

Note 2 continued

assessment. Initial application of this standard is not expected to have any material impact to the financial statements of the Corporation.

Significant accounting judgements, estimates and assumptions

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management bases its judgements and estimates on historical experience and on other various factors it believes to be reasonable under the circumstances, the result of which form the basis of the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions and conditions.

The nature of these assumptions and conditions are found in the following notes to the financial statements.

 Note 6 Income tax equivalent expense  Note 8 Trade and other receivables  Note 9 Property, plant and equipment  Note 10 Leases  Note 11 Investment property  Note 14 Provisions  Note 18 Defined benefit superannuation schemes

Accounting policies

The accounting policies described in these financial statements are based on the requirements applicable to the Corporation. The Corporation has consistently applied the accounting policies to all reporting periods presented, except the change of accounting policies of ROU assets and lease liabilities due to the adoption of AASB 16 Leases.

Significant accounting policies that summarise the basis of recognition and measurement of material items presented in these financial statements are provided in each applicable note about those items.

15

Financial statements • 111 112 Port Authority of New South Wales Annual Report 2019/20 Note 3 Government announce cruise terminal facilities, the OPT and the WBCT,were also impacted by NSWthe Federal Government ban, retail tenants made up of cafés and restaurants at Corporation’s the landlords and tenants impacted by COVID Principles Note In th Rental revenue is accounted for on a straight Rental revenue Transaction price provided to aligns Corporation’s the performance obligations; or at a point in time when goods and services to the customers. Revenue identified basedon the contractswith customersand byconsidering the deliv customer at an amount which the Corporation is entitled to. Revenue is recognised when the Corporation transfers control of goods or services ato Recognitionand measurement release and WBCTthe with rental reliefeffective 22 March 2020. addition,In Federal the Government restaurants from 23 March 2020. The Corporation has provided all retail tenants at the OPT mooring fees and other services are recognised on deliveryof the service to the Port revenue from pilotage and navigation services,wharfage, site occupation charges, Port revenue transaction promised services or goods and payment from the customerexceeds one As year. a result, does not have any contractswith customers where periodthe between the transfer of the Total revenue Other revenue Other recoveries Insurance recover Recoverable security FeePenrhyn for Estuary services Land tax recoverable from tenants Financelease income Interest from bank and Other revenue Navigation recharge Rental revenue revenuePort Revenue from Continuing operations is 3

financial yea . d the

, the, purpose whichof is to impose a set of good faith leasing principles upon

prices have notbeen adjusted for the time value of money. the customer.

Revenue National Cabinet Mandatory Code of Conduct

Revenue

port management port

s ar s

y r , following,

–

e

loss of trade income

determined by agreed rates without any estimation. d closure of all non other

the effectivethe shut downcruise of operations as a result of the

- 19. As a result, the Corporation has also provided

- line basis over leasethe term. -

essential services that included cafés and is recognisedeitherovera in time that manner

The performance obligations are –

SME Commercial Leasing 152,691 123,983 177,402 24,711 11,415 17,293 2,694 3,379 5,000 5,220 1,285 6,720 $000 2020

245 168

the service is fully

The Corporation Corporation The ery ofery distinct customer. 155,013 128,652 176,094 21,081 11,036 15,325 4,471 2,777 5,707 1,260 6,282 $000 2019 231 353

16 -

Note 3 continued

rental relief to eligible tenants applying these principles. The Corporation has re-calculated the straight-line operating lease income over the remaining term of impacted leases.

Navigation recharge revenue Navigation recharge revenue is recognised in accordance with the Port Services Agreements entered into between the Corporation and NSW Ports and Port of Newcastle.

Interest revenue Interest revenue is recognised on an accrual basis using the effective interest method.

Finance lease income Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the Corporation’s net investment outstanding in respect of the finance leases. Refer to note 8 for the nature of the finance leases.

Recoverable security Recoverable security is recognised when the Corporation satisfies the distinct performance obligation by providing the required security services at the cruise terminals.

Insurance recovery – business interruption claim An insurance recovery has been recognised as income and was received in June 2020. This interim payment relates to the insurance cover the Corporation has for the loss of revenue resulting from Federal and State Government restrictions on the movement of cruise ships and associated businesses.

Other revenue Other revenue is recognised when the distinct performance obligation is satisfied.

(a) Revenue disaggregation

The Corporation generates its port management revenue from the provision of its port facilities and rendering of its commercial marine functions. Most of its revenue is recognised at a point in time when services are rendered to customers. During the year, revenue recognised at a point in time amounted to $86.9 million (2019: $87.6 million). Key types of revenue recognised at a point in time include the majority of port revenue and recoverable security revenue. Where satisfaction of a performance obligation is completed over time, revenue is recognised in line with the progress towards complete satisfaction of the performance obligation. During the year, revenue recognised over time amounted to $66.3 million (2019: $66.5 million). Key types of revenue recognised over time include the Penrhyn Estuary service revenue and a portion of port revenue. The duration of service completion ranges from days to weeks.

The following table summarises the revenue disaggregation.

2020 2019 $000 $000

Total revenue recognised from contracts with 153,221 154,134 customers Rental revenue 17,293 15,325 Finance lease income 6,720 6,282 Interest from bank and other 168 353 Total revenue 177,402 176,094

17

Financial statements • 113 114 Port Authority of New South Wales Annual Report 2019/20 Note 4 Note Legal costs Insurance Utilities andcommunications Indirect taxes Repairs and Service contractors Other expenses Amortisation ofintangible assets Depreciation of ROU assets equipment Depreciation Depreciation andamortisation expenses Retirement benefits Retirement benefits Salarycontinuance insurance Workers compensation insurance Fringe benefit Payroll tax Long service leave Annual leave Salariesand wages Employee Continuing operations Total expenses Othercosts finance Unwindingdiscount of on provisions Interest expense on lease liabilities Finance cost on loans and borrowings Finance costs Other operations and services Channel fees Consultant fees Expected credit losses Auditors’ remuneration Directors’ remuneration and Charges for short term, low value leases Operating Materials variable leasepayments 4 .

lease related

Expenses maintenance

Expenses

of property, plant and

s

tax

payments

expense

– –

accumulation defined benefit

s

10(b) 2 10( 1 10( Note 8(a) 9( 4(a) 2(a) 23

c) e c)

)

164,491 21,226 77,470 56,287 56,156 20,908 24,666 3,058 5,574 1,358 1,109 3,740 2,429 6,030 6,199 5,677 6,948 7,216 1,861 1,121 1,455 2,874 3,912 8,844 $000 2020 589 354 455 242 314 344 382 (3) 70 63 54 -

152,980 22,195 74,602 53,538 51,741 18,051 22,620 5,160 1,094 1,092 3,610 2,459 6,467 4,017 4,044 5,539 7,121 2,858 1,714 1,369 2,959 3,587 7,083 $000 2019 (30) 787 395 237 372 851 425 3 18 - - - - -

Note 4 continued

Recognition and measurement

Retirement benefits obligations The Corporation contributes to employee superannuation funds in addition to contributions made by employees. Such contributions are paid to nominated funds. The Corporation contributes to defined benefit plans and defined contribution plans.

Various actuarial assumptions are required to quantify the net position of the defined benefit funds. The determination of superannuation obligations is dependent on an annual actuarial assessment in accordance with the accounting policy.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised directly in other comprehensive income in the year in which they occur. Past service costs are recognised immediately in the statement of comprehensive income.

Contributions to the defined contribution plans are recognised as an expense as they become payable. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

Repairs and maintenance Day-to-day servicing costs or maintenance are charged as expenses as incurred, except where they relate to the replacement or an enhancement of a part or component of an asset, in which case the costs are capitalised and depreciated.

Insurance The Corporation’s insurance activities are conducted through several insurance entities. The expense (premium) is determined based on past claims experience.

Operating lease payments (applicable to the comparative period only) Where the Corporation is the lessee, operating lease payments are recognised as expenses in profit or loss on a straight-line basis over the lease term.

Borrowing costs Borrowing costs are expensed as incurred within finance costs in profit or loss unless they relate to qualifying assets, in which case they are capitalised as part of the cost of those assets. Qualifying assets are assets that take a substantial period of time to be ready for their intended use.

Capitalisation of borrowing costs is undertaken where a direct relationship can be established between the borrowings and the relevant projects giving rise to the qualifying assets. Where funds are borrowed specifically for the acquisition, construction or production of a qualifying asset, the amount of borrowing costs capitalised is net of any interest earned on those borrowings.

19

Financial statements • 115 116 Port Authority of New South Wales Annual Report 2019/20 Note 5 recoverable amount. recognised where carryingthe amountof assetthe or cash Corporationindication the exists, generating unit, or an assetwithin a cash generating unit, may be impaired. If such an The Corporation assesses at each reporting date whether there is any indication that a cash Impairment asset revaluation reserve in respect of that debitedare directly to the asset revaluation reserve to the extent that a credit exists in the Asset r recognised as a loss in to extentthe that an increment reverses a revaluation decrement for an asset previously Asset revaluationAsset increments(decrements) Recognitionand measurement Note 5. arise. the fair value of investmentproperties are included in Investment properties are measured at fair value. Gains Investmentproperty revaluation reserve prior to recognition in revaluation as impairmentthe loss will first be recognised through each asset’s revaluation Total other Valuation loss of investment property equipment Reversal of i Netrevaluation increments Other (Losses) equipment

r evaluation increments are credited directly theto asset revaluation reserve, except that, evaluation decrements are recognised immediately in

losses (losses) mpairment of mpairment Other (Losses) Other (losses) gains

Gains

Impairment losses are recognised in gains profit or loss

property, plant and

-

profit or loss

property, plant and Gains

estimates recoverable the amount.An impairmentloss is

, the incrementis recognised as a gai

.

asset.

Note 9( 9( profit or loss 11

c) c) profitloss or and losses arising from changes in

profit or loss - generating unit exceeds the

in the period of which they

except for assets under (340) (373) $000 2020 33 n in - , except, that they

profit or loss $000 2019 35 35 . 20 - -

Note 6 Income tax equivalent expense Note 6. Income tax equivalent expense

2020 2019 $000 $000 Income tax equivalent expense Current tax (6,895) (6,998) Deferred tax 4,974 1,823 (1,921) (5,175) Deferred tax Deferred income tax equivalent expense included in income tax equivalent expense comprises: Increase / (Decrease) in deferred tax assets 1,394 (131) Decrease in deferred tax liabilities 3,580 1,954 4,974 1,823 Deferred tax equivalent assets Underfunded defined benefits superannuation 4,347 6,012 Leave entitlements 7,281 6,714 Accrued expenses 1,327 1,138 Other 583 345 13,538 14,209 Deferred tax equivalent liabilities The balance comprises temporary differences

attributable to: Depreciation and revalued property, plant and 49,397 52,677 equipment Other 173 415 49,570 53,092

21

Financial statements • 117 118 Port Authority of New South Wales Annual Report 2019/20 Note 6

Other Accrued expenses superannuation Underfunded defined benefits Leave entitlements At 30 June 2020 Movement in deferred tax equivalent assets initial recognition exemption assets Balance at the end of the year Payments Current income tax equivalent Balance at beginningthe of the financial year Movement in income tax equivalent payable equity Netdeferred tax Amounts recognised directly in equity operatingto profit Total income tax equivalent expense attributable Other non Subtract items not assessable Add items not deductible accounting / tax treatment: effectofAdd tax differential items with 30%Prima thereonat facie tax continuing operations Profit before income tax equivalent expense from expense is reconciled as follows: primathefacieand equivalent income tax statementsfinancial theprovided in expense The difference between income tax equivalent

continued - deductible

debited /

expenses in respect of

(credited)

Opening

balance directly to 14,209 1,138 6,012 6,714 $000 345

Charges to income

1 $000 ,39 238 189 400 567 4

Charges to (3,824) ( (5,67 12,746 1,921 2,123 2,016 3, 6,895 2,111 $000 2020 (24) (89) 333 (2,065) (2,065) equity 3 $000 ) )

- - -

balance Closing Closing (6,959) (5,175) (3,030) (6,932) 23,195 13, 1,885 2,111 6,998 2,045 1,327 4,347 7,281 $000 2019 $000 (24) (77) 583 538 22

Note 6 continued

Movement in deferred tax equivalent assets Opening Charges to Charges to Closing At 30 June 2019 balance income equity balance

$000 $000 $000 $000 Leave entitlements 6,248 466 - 6,714 Underfunded defined benefits superannuation 2,097 320 3,595 6,012 Accrued expenses 1,484 (346) - 1,138 Other 916 (571) - 345 10,745 (131) 3,595 14,209

Movement in deferred tax equivalent liabilities Opening Charges to Charges to Closing At 30 June 2020 balance income equity balance

$000 $000 $000 $000

Depreciation, revaluation and derecognition of property, plant and equipment 52,677 (3,338) 58 49,397 Other 415 (242) - 173 53,092 (3,580) 58 49,570

Movement in deferred tax equivalent liabilities Opening Charges to Charges to Closing At 30 June 2019 balance income equity balance

$000 $000 $000 $000

Depreciation, revaluation and derecognition of property, plant and equipment 54,224 (2,112) 565 52,677 Other 257 158 - 415 54,481 (1,954) 565 53,092

Recognition and measurement

Income tax equivalent Income tax equivalent is required to be paid to the NSW Government in accordance with Section 20T of the State Owned Corporations Act 1989. The payments are equivalent to the amounts that would be payable under the normal income tax laws of the Commonwealth.

Income tax equivalent expense includes both current and deferred tax. Deferred income tax is provided on all temporary differences at the statement of financial position date between the tax bases of assets and liabilities and their carrying amounts for financial reporting

23

Financial statements • 119 120 Port Authority of New South Wales Annual Report 2019/20 Note 6 Note 7 Cash Fund andequivalents cash as defined above. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash

funds on deposit in the NSWTreasury Corporation’s Cash and cash equivalents in the statement of financial position comprise cash at bank and Recognitionand measurement Note inclusive of GST whereapplicable. Commitments and accrual items th from or payable to the taxation authority are classified as operating cash flows. component of cash flows arising from investing and financing activities which is recoverable Cash flows are included in the statem part of receivables or payables in the statement of financial position. The net amount of GST recoverable from, or payable to, the taxation authority is included as amountthe of GST included. orasset as part of the expense item as applicable.Receivables and pa taxation authority, in which case the GST is recognised as part of the cost of acquisition of the where the GST incurred on a purchase of goods and services is not recoverable from the Revenues,expenses, assetsand liabilities recognisedare of net amount the of GST except GST and liabilitiesto relatet exists to set off current tax assets against current tax liabilities and the deferred tax assets Deferred assets tax and deferred tax liabilities offsetare only if a legally enforceable right equity and not in profit or loss date. Income tax equivalents relating to items recognised directly in equity are recognised in laws)tax that have been enacted or substantively enacted at the statement of financial position apply the to yearwhen the asset Deferredincome assetstax and liabilities measured are at the ratestax thatexpectedare to Deferred are enacted or substantively enacted by the statement of financial position date. taxable income. The tax rates and the lawstax used to compute amountthe are t expected to be recovered from or paid to the taxation authorities based on the relevant year’s Current tax assetsCurrenttax and liabilities recognised in equity as part of other comprehensive income. purposes. Current and deferred tax amounts relating to items recognised directly in equity are

cashCashand equivalents TCorpIM Cash Fund Cash at bank

7 .

tax assets and liabilities continued . assets and liabilities for the current and prior years are measured at the amount The value of the funds on deposit in the TCorpIM Cash Fund is at fair v Cash and cashCashand equivalents Cash andcashequivalents

he sametaxable entity.

.

is realised or the liability is settled, based on tax rates (and

at are shown in statementthe of financial position are

ent of cash flows on a gross basis and the GST

Investment Management

17,351 16,608

$000 20 yables stated are with 743

(TCorpIM) (TCorpIM) alue. hose that 17,015 14,898 2,117

$000 2019

24

Note 7 continued

TCorpIM Cash Fund The Corporation places funds on deposit in the TCorpIM Cash Fund. These funds are represented by a number of units in the managed fund. TCorp appoints and monitors fund managers and establishes and monitors the application of appropriate investment guidelines. These funds are generally able to be redeemed with up to 24 hours prior notice. The value of the funds on deposit represents the share of the value of the underlying assets of the fund and is stated at fair value.

Refer to note 20 for details of credit risk and market risk arising from financial instruments.

(a) Reconciliation from the net profit for the year to the net cash flows received from operating activities:

2020 2019 $000 $000 Net profit for the year 10,825 18,020

Adjustments for: Depreciation and amortisation expenses 24,666 22,620

Investment property valuation decrement 373 -

Amortisation of discount on borrowings (1,211) (823)

Net revaluation increments of property, plant and equipment - (35)

Net gain on sale of property, plant and equipment (175) (46)

Reversal of impairment of property, plant and equipment (33) - Write-off of property, plant and equipment 851 42 Finance lease income (6,720) (6,282) 28,576 33,496 Changes in assets and liabilities applicable to operating activities

Increase in trade and other receivables (2,478) (1,841)

(Increase) / Decrease in deferred tax equivalent assets (1,394) 131

Decrease in deferred tax equivalent liabilities (3,580) (1,954)

Increase in income tax equivalent payable 1,222 66

Increase in trade and other payables 2,958 749

Increase in provisions 1,960 1,522

Increase in other liabilities 1,334 1,068

Net cash flows received from operating activities 28,598 33,237

25

Financial statements • 121 122 Port Authority of New South Wales Annual Report 2019/20 Note 8 Note 7 Note years. The Corporationhas Non non therefore All payments from finance leases were received upfront. Significant non for provision matrix based on its historical credit loss experience for trade receivables,adjusted ba Corporation applies a simplified approach in calculating ECLs and recognises a loss allowance receive,to discounted theat original effective interest rate. difference between the co otherand receivables The Corporation recognises an allowanceexpected for credit loss Impairment yearthe when impaired, derecognised o effective interest method, less any impairment. Changes are recognised in the net result for collect the contractual cash flows and therefore measures them at amortised cost using the ordinarycourse ofbusiness. The Corporation holds these Trade and other receivables are amounts due from customers for services performed in the Trade and other receivables Recognitionand measurement Financelease receivable Other non incentiveLease receivable Non Accrued income incentiveLease receivable Prepayments Allowance Other receivables Trade receivables Current sed on lifetime ECLs eachat reporting date if required. The Corporation has established a current and - - cash cash inves - 8

current .

finance lease income

activity continued -

current receivable for expected for credit loss

Trade and other receivables

Trade andotherreceivables

forward- - ting . cash activities

Refer to note 8(b) for details of finance lease receivables.

and financingtransactions no significant non notatheldfair value through looking factors specific to the receivable. ntractual cash flows and the cash flows that Corporationthe expects

represents

r throughamortisationr the process. - cash investing and financing the movement in finance lease receivables as

8(a) 8(a) 8(b)

profit or loss

N o further payments will be received receivables withobjective the to

105,648 103,169

Fortrade receivables, the 12,114 16, 12,060 es 3,709 8,405 2,479 3,3 . ECLs are based on the $000 2020 (54) 290 939 600

(ECL 11 - transactionsin both

s

) for all

the trade the 10,178 97,992 96,449 14,685 10,178 3,175 7,003 1,478 3,375 1,015 $000 2019 117 65 26 - a

,

Note 8 continued

Lease incentives – as lessor Payments made by a lessor to a lessee associated with a lease, or the reimbursement or assumption by a lessor of costs of a lessee.

Finance leases A finance lease effectively transfers, from the lessor to the lessee, substantially all the risks and rewards incidental to ownership of the leased asset. Amounts due under a finance lease are recognised as receivables at the amount of the entity’s net investment in the lease. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the entity’s net investment outstanding in respect of the leases.

Costs incurred for capital dredging (harbour deepening) of channels were previously recognised as prepaid licence fees with the licensor being NSW Roads and Maritime Services.

As part of the long term leases in 2013 and 2014 as detailed below, two revised Channel User Licence Agreements with NSW Roads and Maritime Services were executed in 2013 and one was executed in 2014. The Corporation considers these agreements to represent finance leases.

(a) Ageing analysis of trade and other receivables

At each reporting date, the ageing analysis of trade and other receivables is as follows:

Not 0–30 31–60 60+ 90+ 120+ Total due days days days days Days $000 $000 $000 $000 $000 $000 $000

2020 12,114 7,915 1,609 922 428 179 1,061 ECLs 0.45% 0.02% 0.02% 0.30% 2.23% 3.21% 3.21%

2019 10,178 8,600 1,240 205 85 48 - ECLs 0% 0% 0% 0% 0% 0% 0%

Movements in the allowance for ECLs are as follows:

2020 2019 Note $000 $000 Balance at 1 July - - Current year charges 4 54 - Closing balance 54 -

The Corporation trades only with recognised creditworthy third parties. Customers who wish to transact on credit terms are subject to credit verification procedures which may result in obtaining bank guarantees. In addition, trade and other receivable balances are monitored on an ongoing basis.

The Corporation applies the AASB 9 simplified approach to measuring ECLs which uses a lifetime expected loss allowance for all trade receivables. To measure the ECLs, trade receivables have been grouped based on shared credit risk characteristics and the days past

27

Financial statements • 123 124 Port Authority of New South Wales Annual Report 2019/20 Note 8 allowance for affecting the ability of the customers to settle the receivables. are adjusted to reflect current and forward due.The expected loss ratesare based on historical observed l

(201 a single trade debtor.The largestsingle trade debtorincluded in receivables totals $ The Corporation is not considered to be materially exposed to a concentration of credit risk to due Refer noteto 20 License Deedwith ships to enter the wharf area. As part of The Corporation (i) (b) channel corresponds on expiry of the lease. a result,As expiryOn of the The Corporation considers this agreement to representa finance lease. assess (ii) valuation.changesto the The value was based on information the available at inceptionthe of the lease. The valuation of the residual interest was carried outby external advisers as at 30 June 2014. accretion of the finance lease receivable. Corporation re leasefinance receivable. Sydney Ports Corporation, amalgamated income asat recognised $2.2 recognised$30.2at millionin 2014. May $20.4 million $20.4 Authority of New South Wales 2020 over the accreted ofexpiry the leasethe corresponds to present the value of the assets willthat revert to the Corporation on investment in the lease. As all lease payments were received upfront, As a result, a finance lease receivable has been recognised equal to the value of its net expiryOn of the Maritime Services was executed. The agreement represent term lease Botany Bay, thereby creating a channel for ships to enter the wharf area

sidual asset will be accreted over the

Finance lease Finance lease receivables Finance lease n 9 or impair or : $1. estimated at $17. es As all lease payments were received upfront, netthe investment in the lease asset. asset.

continued 7 for indicators impairmentof of any material damage or changes to the

transaction, a revised Channel User Licence Agreement with NSW Roads and a finance lease receivable has been recognised equal to the netinvestment in the million) and is and million) has has

99 in2013 May ECLs ed 30 June 2020 No significant factors wereidentified during the -

year (c) . previously incurred costs to dredge Newcastle in Port creating channela for 98 99 recognised $ million million

99- – - NSWRoads andMaritime Services

- -

for further detailscredit of risk of trade receivables that are neither past on its on year year

Botany Bay

Newcastle year term. No further payments will be received, and a residual will asset be 5 (201

lease term, a dredged channel asset will revert to the Corporation.

lease term, a dredged channel asset will revert to the Corporation.

billion. The initial value of the residual interest was recognised at

financial assets term of the lease with totalunearned financeincome asat 1.28 . In 9

) of

: $ 2.

% th 98 effective from from effective

9

e $19.9 billion. The initial value of the residual interest was

2.1

- of totalfinancial assets(201

million (201 million year financial

million) million)

lease. No further payments will be received, and a 98-

in the amount of $ in the the year

In th year ended 30 June 2020 - to finance lease income from the accretion of the looking information on macroeconomic factors 1 July 2014 9

long term lease transaction,a : $ Newcastle Port Corporation (trading as

term of the lease with total unearned finance e 2.

financial 7

million) finance lease income from the

was executed , previously incurred costs to s

54,000 (2019:nil) year endedyear 30 a finance leas 9 year : oss rates. The historical rateshistoricaloss rates.The 1.34 The Corporation recognised

that re %). on 20on Dece

, the Corporation the net investment in

. sultedin significant As part of the e.

June 2020 .

Channel User

M mber 2013.mber anagement 1.8 million 1.8 dredged 30 June dredge

, long long Port Port has has the the 28

Note 8 continued

(iii) Finance lease – Port Kembla Port Kembla Port Corporation, amalgamated into Newcastle Port Corporation (trading as Port Authority of New South Wales) effective from 1 July 2014, previously incurred costs to dredge Port Kembla in creating a channel for ships to enter the wharf area. As part of the long term lease transaction, a revised Channel User Licence Agreement with NSW Roads and Maritime Services was executed. The agreement represents a finance lease.

On expiry of the 99-year lease term, a dredged channel asset will revert to the Corporation. As a result, a finance lease receivable has been recognised equal to the net investment in the lease. As all lease payments were received upfront, the net investment in the lease corresponds to the present value of the assets that will revert to the Corporation on expiry of the 99-year lease term. No further payments will be received, and a residual asset will be accreted over the 99-year term of the lease with total unearned finance income as at 30 June 2020 estimated at $13.1 billion. The initial value of the residual interest was recognised at $15.3 million in May 2013. In the financial year ended 30 June 2020, the Corporation has recognised $1.6 million (2019: $1.5 million) finance lease income from the accretion of the finance lease receivable.

The valuation of the residual interest in Botany Bay and Port Kembla was carried out by external advisers as at 30 June 2013. The value was based on the information available at the inception of the lease. Management assesses for indicators of impairment of any material damage or changes to the dredged channel asset. No significant factors were identified during the year that resulted in significant changes to the valuation.

29

Financial statements • 125 126 Port Authority of New South Wales Annual Report 2019/20 Note 9 within componentthe will flow to Corporation,the and its cost can be measu in carryingthe amount of the item if it is probable that the future economic benefits embodied The cost acquisition. orcost for nominal consideration are initially recognised at their fair value at datethe of revalued at fair value less accumulated depreciation and impairment. otherof Australian Accounting Standards. attributed to that asset when initially recognised in accordance with the specific requirements acquire the asset at the time of its acquisition or construction or, where applicable, the amount amount of cash or cash equivalents paid or the fair value of the other co attributable to the asset and any restoration costs associated with the asset. Cost is the Property, plant and equipment is initially recognisedcost, at including any costs directly Asset capitalisation Recognitionand measurement Carrying (a) amounts of Not carrying amount) Total property, plant and equipment at fairvalue (net Total construction in progress Construction in Netcarrying amount Accumulated depreciation Plant (gross carrying amount) Netcarrying amount Accumulated depreciation Wharves, jetties and breakwaters (gross carrying amount) Netcarrying amount Accumulated depreciation Roadways andbridges (gross carryingamount) Netcarrying amount Accumulated depreciation Land and buildings (gross carrying amount) At fair value - - - -

Plant Wharves,and jettiesbreakwaters Roadways andbridges Land and buildings e 9 .

of replacing a component of an item of property, plant and equipment is recognised

Property, plant and equipment

Property, plantandequipment progress

owned

property, plant and equipment at fair value

Property, plant and equipment is subsequently

(44,93 (24,915) (52,171) 128,358 295,436 320,351 435,455 (4,361) 42,658 87,58 11,967 16,328 76,187 9,207 1,438 2,946 4,594 $000 2020 Assetsacquired at no 229 nsiderationgiven to 0 8 )

red reliably.

(37,649) (20,738) (45,991) 112,599 299,259 319,997 441,617 (3,484) 49,939 87,588 13,374 15,921 11,132 66,608 9,890 2,556 1,811 $000 2019 422

30

Note 9 continued

Only the assets in excess of $1,000 are capitalised if they are expected to provide future economic benefits for more than one reporting period.

Derecognition An item of property, plant and equipment is derecognised when it is sold or otherwise disposed of, or when its use is expected to bring no future economic benefits. Gains and losses on disposal are determined by comparing the proceeds with the carrying amount. These are included in profit or loss.

Depreciation of assets Depreciation expenses have been calculated on depreciable assets, using rates estimated to write off the assets over their remaining useful lives on a straight-line basis. Land assets have been treated as non-depreciable. The useful lives of assets were reassessed during the year with no material changes required.

The useful lives of each category of depreciable assets are:

. Buildings 10 to 51 years . Roadways and bridges 20 to 50 years . Wharves, jetties and breakwaters 4 to 50 years . Plant 2 to 50 years

Recoverable amount of assets At each reporting date, the Corporation assesses whether there is any indication that an asset may be impaired. Where an indicator of impairment exists, the Corporation makes a formal estimate of the asset’s recoverable amount.

Where the carrying amount of an asset exceeds its recoverable amount the asset is considered impaired and is written down to its recoverable amount. The recoverable amount is determined for an individual asset unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. If this is the case, the recoverable amount is determined for the cash-generating unit to which the asset belongs, unless either the asset’s fair value less costs to sell is higher than its carrying amount, or the asset’s value in use can be estimated to be close to its fair value less costs to sell and fair value less costs to sell can be determined. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

No asset impairment loss was recognised in the current financial year (2019: nil).

Valuation of property, plant and equipment Property, plant and equipment is valued at fair value in accordance with Australian Accounting Standards and the NSW Treasury Policy Paper on Valuation of Physical Non-Current Assets (TPP 14-01).

(i) Valuation of land Land is valued at fair value having regard to its highest and best use. However, where there are natural, legal and socio-political restrictions on the use of land such that there is no feasible alternative use in the near future, such land is valued at market value for its existing use, because that is its highest and best use.

(ii) Valuation of buildings Non-specialised buildings, which include commercial and general purpose buildings for which there is a secondary market, are valued at fair value. Specialised buildings are designed for a specific, limited purpose. Where there are no feasible alternative uses for such buildings, they

31

Financial statements • 127 128 Port Authority of New South Wales Annual Report 2019/20 Note 9 An independentvaluerAn (RHAS subjectare to buildings are subject to comprehensive valuation at least every 3 years. plant and equipment does not materially differ from fair value at reportingthe Land date. and Revaluat (v) note Refer to 1 under the valuefair hierarchy is not expected to change. transfer levelsthe of fair value hierarchy depending on valuationthe techniques used for the for use as intended by management. The transfer may triggera transfer between different historicalat cost and a surrogate for value.fair Assets included in construction in progress are normally recognised Non In In (b) (b) indices / generallygreater 20%.than interim formal revaluation where there has been a cumulative increase decrease / in indicators decreases/ in The Corporation undertakes an interim management revaluation when cumulative increases changes to indicators / indices suggest fair value differmay materially from carrying the value. Interim revaluations are condu accumulated depreciation are separately restated. revalued (adjusted reflectto the present condition assets),the of the amountgross and revalue conducted by Aon since 2018 in order to assist management applying indic provided gross values forland and buildings at 30 June 2018. (iv) assetsinclude roadwaysand bridges, wharves, jetties andbreakwaters. which is the replacement cost of the asset’s remaining future economic benefits. Infrastructure Specialised plant and infrastr financial yearended (iii) uses for such buildings. represented by market valueexisting for use, because there are few or no feasible alternative remaining economic benefits. Heri are valued at market buying price, the best indicator of which is the replacement cost of the wereappropriately indexed and bridges advicethis andappliedindexno to COVID comprehensive valuationwas conducted.From the lastcomprehensive review,the wharves, jetties and breakwaters, roadways and bridges at 30 June 2017 when A quantity and construction consultant (MDA Australia Pty Limited) provided gross values for Management has considered and buildings (2019: 0.49%) of land and buildings

the

Current year asset Asset revaluation Valuationnon of Valuationspecialised of plant and infrastructure - specialised assets with short useful lives are measured at depreciated historical cost, as

financial year ended 30 June 2020, MDA advised management that the impact of -

red asset. Unless there is a change in valuation technique the asset categorisation 19 to the the to 19 non- ions are made with sufficient regularity to ensure that the carrying amount of property, continued .

current assets by reference currentto prices assets for newer than those being

9 indicators indices / generallyare less than or equal 20%. to undertakesIt an a

for furtherinformation regarding valuefair and hierarchy levels. index applicable comprehensive valuation at leastevery 5 years. -

these assets are transferred to property, plant and equipment when ready specia 30 June2020,

and

revaluation

recommended lised assets and construction in progress by . ucture is measured at market buying price, the best indicator of

this this 2.2%and 2.0% at 30 June 2018 and 30 June 2019 cted between cted comprehensive revaluationswhen cumulative -

an Aon Company) to these assets recommendation and the values of valuesthe Aon

tage buildings are valued at fair value. Fair value is

has considered impactthe of COVID no no index be applied wharves, jetties andbreakwaters,roadw wa

s uncertain. Management has considered conducteda comprehensive reviewand applied no index to land (2019: 0%)

to to Interimbeenhave reviews the value of

Where the CorporationWhere the

Infrastructure ass es to assets. In th - 19 to 19 valuethe to these assets

respectively

se the last

assets ays e 32 ts ts e . . ,

Note 9 continued

The Corporation’s qualified engineers assessed the remaining useful lives of each asset. Based on these assessments, all assets are recorded at fair value. The assets that were not revalued due to materiality are also shown at fair value as the written-down value approximates fair value.

(c) Movement in property, plant and equipment

Wharves, Land and Roadways jetties and buildings and bridges breakwaters Plant Total Note $000 $000 $000 $000 $000

Balance at 1 July 2019 299,259 9,890 49,939 66,608 425,696

Additions - - - 3 3

Revaluation increments recognised in other comprehensive income 17(a) 187 5 - - 192

Reversal of impairment 5 - - - 33 33

Transfer from construction in progress 9(e) 171 2,954 - 19,392 22,517 299,617 12,849 49,939 86,036 448,441 Depreciation charge 4 (4,181) (882) (7,281) (8,882) (21,226) Write-offs - - - (851) (851) Disposals - - - (116) (116) Balance at 30 June 2020 295,436 11,967 42,658 76,187 426,248

Wharves, Land and Roadways jetties and buildings and bridges breakwaters Plant Total Note $000 $000 $000 $000 $000

Balance at 1 July 2018 302,291 10,389 55,914 74,614 443,208

Revaluation increments recognised in other comprehensive income 17(a) 449 177 1,258 - 1,884

Revaluation increments recognised in profit or loss 5 8 22 5 - 35

Transfer from construction in progress 9(e) 666 9 - 2,224 2,899 303,414 10,597 57,177 76,838 448,026 Depreciation charge 4 (4,155) (707) (7,229) (10,104) (22,195) Write-offs - - (9) (33) (42) Disposals - - - (93) (93) Balance at 30 June 2019 299,259 9,890 49,939 66,608 425,696

33

Financial statements • 129 130 Port Authority of New South Wales Annual Report 2019/20 Note 9 as follows:wouldbe If property, plant and equipment were measured using the cost model, the carrying amounts accumulated (

d At cost Total property, plant and equipment Constructionin progress Netcarrying amount Accumulated depreciation Plant (gross carrying amount) Netcarrying amount Accumulated depreciation Wharves,and jettiesbreakwaters Netcarrying amount Accumulated depreciation Roadways andbridges (gross carryingamount) Netcarrying amount Accumulated Land and buildings (gross carrying amount) ) Carrying amounts if property, plant and equipment were measured at cost less

continued depreciation depreciation

(gross carrying amount)

(22,874) (52,395) (49,710) 237,046 259,920 358,666 129,119 (4,279) 74,832 10,567 14,846 76,724 25,122 9,207 $000 2020

(19,141) (46,454) (42,158) 240,607 259,748 364,331 113,360 (3,669) 74,832 11,892 15,921 66,906 32,674 8,223 $000 2019 34

Note 9 continued

(e) Movement in construction in progress

2020 2019 Note $000 $000

Balance at 1 July 15,921 5,145 Additions 17,122 13,966 33,043 19,111 Transfers to property, plant and equipment 9(c) (22,517) (2,899) Transfers to intangible assets 12(a) (1,319) (291) Closing balance 9,207 15,921

There was no borrowing cost capitalised in either year.

NoteNote 10. 10 Leases

(a) Carrying amounts of right-of-use assets

2020 2019 At cost Note $000 $000 (*) ROU - Land and buildings 13,329 - Accumulated depreciation (2,816) - Net carrying amount 10,513 -

ROU – Wharves, jetties and breakwaters 574 - Accumulated depreciation (53) - Net carrying amount 521 -

ROU – Plant 590 - Accumulated depreciation (189) - Net carrying amount 401 -

Total ROU assets 11,435 -

(*) AASB 16 Leases was adopted on 1 July 2019 as disclosed in note 2. Accordingly, the carrying amount of ROU assets was nil as at 30 June 2019.

Recognition and measurement

Right-of-use assets The Corporation recognises ROU assets at the commencement date of the lease (i.e. the date the underlying asset is available for use). ROU assets are initially measured at the amount of initial measurement of the lease liability, adjusted by any lease payments made at or before

35

Financial statements • 131 132 Port Authority of New South Wales Annual Report 2019/20 Note 10 extension options. Lease terms are negotiated on an individual basis and contain a wide range contracts is typically fixedperiods for of 3 to 10 years. These contracts also may include The Corporation leases various properties and equipment. The duration of The Corporation’s leasing ac N a (net of depreciation) had no impairment loss been recognised for the asset in prior years. loweritsof recoverable amount and carryingthe amount that would hav was recognised estimates an impairment loss has been recognised, it is reversed only if there has been a change in the amount, the asset is considered impaired and is written down to its recoverable amount. After asset’srecoverable am when whether date, isanthere indicationasset an impaired. that be may indicationanyIf exists,or ROU assets are subject impairmentto Impairmentof testing . . . basis over the shorter of the lease term and the estimated useful lives of the assets, as follows: The ROU assets are subsequently measured at cost. They are depreciated costs of dismantling and removing the asset or restoring the site. commencementthe date and lease incentives, any initial directcosts incurred, and estimated assets, and correspondingly in the lease liabilities. change in estimatethe of remaining the lease terms impacts directly on the value of The value of ROU assets will increase / decrease if leasethe terms increase / decrease.Any occur The assessment is reviewed if a significant eventa significant or change in circumstances included in the lease term if the lease is reasonably certain to be extended (or not terminated). create an economic incentiv determiningIn lease the term, Corporationthe considers all facts and circumstances that Critical judgements in determining the lease term leased assets cannot be used as security for borrowing purposes. differentof terms and conditions. The lease arrangements do not impos

o impairmentloss reversal is recognised in ROU ROU ROU ROU s that affects this assessment and that is within the control of lessee.the the the - - -

annual impairment testing for an asset is required, the Corporation estimates the used determineto the asset’s recoverable amount Plant Wharves,and jettiesbreakwaters Buildings continued .

If this is the case, the carrying amount of the asset shall be increased to the was

ROU assets ount. When carryingthe amount of recognised inrecognisede current th profit or loss. tivities e to exercise an extension option. Extension options are only

testing

. The Corporation assesses, at each reporting

financial year.

3 5 to 1 to 5 1

2 to to

years 5

2 years

the the years

since the last impairment loss asset exceeds its recoverable

e any covenants, but e beendetermined on a straight property lease

the ROU ROU the Such - line line 36

Note 10 continued

The Corporation as a lessee

(b) Movements in ROU assets

ROU - Land ROU - Wharves, and jetties and ROU - buildings breakwaters Plant Total ROU Note $000 $000 $000 $000

At 1 July 2019 13,541 677 310 14,528 Additions - - 291 291

Depreciation charge 4 (2,816) (53) (189) (3,058)

Changes in index or rates affecting variable payments (212) (103) (11) (326) Balance at 30 June 2020 10,513 521 401 11,435

(c) Lease liabilities

The following table presents liabilities under leases. 2020 2019 Note $000 $000 (*) At 1 July 2019 14,528 - Additions 291 - Interest expenses 4 455 - Rental payments (3,163) - Changes in the index or rates affecting variable payments (326) - Balance at 30 June 2020 15 11,785 -

(*) AASB 16 Leases was adopted on 1 July 2019 as disclosed in note 2. Accordingly, lease liabilities were nil as at 30 June 2019.

Lease liabilities Lease liabilities include the net present value of the following lease payments:

 Fixed payments, less any lease incentive receivables;  Variable lease payments that are based on an index or a rate. Variable rents that do not depend on an index or rate are not included in the measurement of the lease liability and the ROU asset. The related payments are recognised as an expense in the period in which the event or condition that triggers those payments occurs and are included in profit or loss;  Amounts expected to be payable by the lessee under residual value guarantees;  The exercise price of a purchase option, if any, if the lessee is reasonably certain to exercise that option; and  Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.

The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for the Corporation’s leases, the

37

Financial statements • 133 134 Port Authority of New South Wales Annual Report 2019/20 Note 10 year ended 30 June 2020 The Corporation had total cash outflows for leases$ of respect of leases where the Corporation is the lessee: The following amounts were recognised in ( lease liabilities included are in The Corpor an option to purchase the underlying asset. an index or rate used to determine such lease payments) or a change in the assessment of a change inlease the payments(e.g. changes to future payments resulting froma change in amount of lease liabilities is remeasured if there is a modification, a change accretion of interest and reduced for the lease payments made. In addition, the carrying After the commencementdate, the amount of lease liabilities is increased to reflect the securityand conditions. ofasset similarvalue to the ROU in asset similara economic environment with similarterms, the rate that the Corporation would have payto to borrow the funds necessary to obtain an lessee’s incremental borrowing rate ( d Total lease liabilities Later than five years Later than one year and laternot than five years lateroneNotyear than Maturity analysis Non current Current Lease Total amount recognised measurement of lease liabilities variable lease payments, not included in the Charges for short term, low value leases, and Interest expense on lease liabilities Depreciation of ROU assets e ) Lease) liabilities maturity analysis ) Lease amounts recognised in liabilities

continued ation does nota face significantliquidity risk with regard itsto lease liabilities.Its

.

in profit or loss

the

interest

inclusive of the governmentguaran

profitor loss

- bearingliabilities 15. note profitloss or

2.708 for the Note Note 15 15 4 4 4

million yearended 30 June 2020

, net, interest, of 11,785 11,785 2,827 8,209 2,827 8,958 tee rate tee $000 2020 749

in leasethe term,

is used, being 3, 3,058 for the $000 2019 $000 2020 344 455 8 57

38 ------in in

Note 11 Investment property Note 11. Investment property

2020 2019 At fair value $000 $000

Land and building 8,000 7,700

At fair value 2020 2019 Movements Note $000 $000

Balance at 1 July 7,700 7,700 Additions 673 - Loss on valuation 5 (373) - Closing balance 8,000 7,700

During the financial year, there were capital works undertaken to the investment property. Following the completion of capital works, the investment property carrying value is consistent with the fair value assessment carried out by an independent valuer (RHAS - an Aon Company). They have appropriate qualifications and recent experience in the valuation of properties in the relevant locations. The fair value was determined based on the capitalisation of income approach whereby a yield is applied to the property’s income to assess its value.

Further details regarding the fair value measurement of investment property are disclosed in note 19.

The following amounts have been recognised in the net result:

2020 2019 $000 $000 Rental income 619 628 Direct operating expenses that generated rental income (411) (386) Direct operating expenses that did not generate rental income - - 208 242

Recognition and measurement

Investment properties are properties held to earn rental income and/or for capital appreciation (including property under construction for such purposes). Investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at fair value in accordance with AASB 140 Investment Property.

Gains and losses arising from changes in the fair value of investment properties are included in profit or loss in the period in which they arise.

39

Financial statements • 135 136 Port Authority of New South Wales Annual Report 2019/20 Note 12 Note 11

easements. historic cost method rather than valuefair as it is assumed there is no active market for Easements relate to the Corporation’s interest in land.Easements are recognised using the The Corporation’s intangible assets relate to software and ease are carried at cost less any accumulated amortisation and any accumulated impairment loss. Intangible assets are initially capitalisedcost. at Following initial recognition, intangible assets Intangible assets Recognitionand measurement (a) or loss between the net disposal proceeds and the carrying amount of asset)the is included disposal. Any gainloss or arising on derecognition theof property (calculatedifference d asthe permanently withdrawn from use and no future economic benefits are expected from the An investment property is derecognised upon disposalwhen or the investment property is No depreciation ischarged on Note

carrying amount) intangibleTotalcostassets (net at Easements Netcarrying amount Accumulated amortisation Software Carrying amounts (at cost) Closing balance Amortisation charge Transfer from constructionprogressin Software Additions Balance at 1 July

Movements intangiblein assets 1

2 in the period in which propertythe is derecognised. .

development continued

Intangible assets Intangible assets

in progress

an

investment property.

Note 9( 4

e

)

ments. (3,403) 2,060 5,463 2,290 2,290 2,672 1,319 1,353 (382) $000 2020 $000 2020 230 550 769

(3,021) in profit 1,353 1,778 1,487 1,123 4,144 1,353 (425) $000 2019 $000 2019 291 291 230 40 -

Note 12 continued

Amortisation The Corporation’s software intangible assets have finite lives and are amortised on a straight- line basis over a range of useful lives from 3 to 10 years.

The estimated useful life for an easement is indefinite. Intangible assets with an indefinite useful life are assessed for impairment annually.

Impairment of intangible assets Intangible assets are tested for impairment where an indicator of impairment exists. If the recoverable amount is less than its carrying amount, the carrying amount is reduced to the recoverable amount and the reduction is recognised as an impairment loss.

Note 13 13. TradeTrade and and other other payables payables

2020 2019 Note $000 $000 Current Trade payables 1,247 1,097 Accrued employee benefits 14(d) 4,138 3,417 Accrued borrowing costs 2,925 2,480 Accruals for assets under construction 4,626 3,675 GST payable 1,152 1,008 Other payables and accruals 6,344 4,614 Maintenance funds liability 1,088 917 Income received in advance 2,061 1,976 23,581 19,184 Non-current Income received in advance 1,955 2,068 1,955 2,068

Recognition and measurement

Trade and other payables Trade and other payables are carried at amortised cost and due to their short-term nature they are not discounted. Their carrying value is assumed to approximate their fair value. Trade and other payables represent liabilities for goods and services provided to the Corporation prior to the end of the financial year that are unpaid and arise when the Corporation becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured and are usually paid within 28 days of recognition.

Details regarding liquidity risk, including a maturity analysis of the above payables are disclosed in note 20(d).

Accrued employee benefits Accrued employee benefits include salaries and wages, payroll tax, fringe benefits tax, and retirement benefits that are expected to be paid wholly within 12 months after the end of the period in which the employees render the service. These amounts are recognised and measured at the undiscounted amount of the benefits. Aggregate employee benefits and related on-costs are disclosed in note 14(d).

41

Financial statements • 137 138 Port Authority of New South Wales Annual Report 2019/20 Note 14 Note 13

Note 1 performancethe obligations to be delivered in future periods. Income received in advance relates considerationto received in advance customfrom Incomereceivedadvance in months. does expectnot all employees to take the full amountaccrued of leave within th unconditional right to defer settlement. The entire obligation is presented as current since the Corporation does not have an (b) (a)

Provision for make good Non 12 Annualleaveobligations after expected beto taken Provision for make good Long service leave Non employeeOther benefits Long service leave Annual leave Current

months Movements provisionin formake good Annual leave obligation - - current current 4

.

continued

Provisions

Provisions

s

expected to be taken after Opening balance However, $000 5 13

14 14(d) 14(d) Note Adjustment

to profit or based on past experience the Corporation (a)

$000 loss

70

12

months Payments 22,217 13,047 2,636 2,053 8,610 $000 2020 583 560 made 3,

$000 $000 2020 516

-

e next balance Closing Closing 20,085 11,922 2,808 2,295 7,674 1,618 ers for $000 2019 $000 2019 $000 513 489 583 12 12 42

Note 14 continued

(c) Long service leave obligations expected to be taken within 12 months

2020 2019 $000 $000 Long service leave obligations expected to be taken within 12 months 1,546 1,513

The current provision for long service leave includes all unconditional entitlements where the Corporation does not have an unconditional right to defer settlement. The amount provided which relates to employees with service less than the qualifying year is disclosed as non- current as there is no legal obligation to pay within 12 months.

(d) Aggregate employee benefits and related on-costs

2020 2019 Note $000 $000

Provisions – current 22,217 20,085 Provisions – non current 2,053 2,295 Accrued employee benefits 13 4,138 3,417 28,408 25,797

Recognition and measurement

Provisions Provisions are recognised when the Corporation has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Employee benefits Employee benefits relate to annual leave, long service leave, termination and other employee benefits.

(i) Annual leave The annual leave provision is presented as a current liability as the Corporation does not have an unconditional right to defer settlement for at least 12 months after the reporting period. Annual leave is not expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related service. As such, it is required to be measured at present value in accordance with AASB 119 Employee Benefits. The Corporation has assessed and determined that the effect of discounting is immaterial to annual leave.

43

Financial statements • 139 140 Port Authority of New South Wales Annual Report 2019/20 Note 14 (v) They areincluded amounts of payroll tax, workers’ compensation insurance premiums and superannuatio employee benefits whichto they relatehave been recognised.This includes outstanding Consequentialcosts to employmentare recognisedas liabilities and expenses where the (iv) statement of financial po encourageto voluntary redundancy. Benefits falling duethan 12 more months after the withoutpossibility of withdrawalproviding or termination benefits as a resultan of offer made eitherto terminating the employment of curren benefits. The Corporation recognises termination benefits when it is demonstrably committed retirement date, or when an employee accepts voluntary redundancy in exchange for these Salaries and wages (including non Terminationbenefits are payable when employmentis departures and periods service.of Expected futurepayments are discounted Consideration isgiven to expectedfuture wage and salarylevels, experienceemployee of provided by employees upthe to reporting date using projected the unit credit method. measured as the present value of expected future payments to be made in respect of ser The liabilitylong for service leave is recognised in provision the employee for benefits and is (ii) servicethe are recognised and measured at the undiscounted amounts of benefits.the to be settled wholly within 12 months after the end of the period (iii) that match, as closely as possible, estimatedthe future cash outflows. yields at the reporting date on high quality corporate bonds with terms to maturity and currency

Consequential on Long service leave Salariesand wages Termination benefits continued in the - costs

sition date are discounted to their present value. provision for annual leave and long service leave.

- monetary benefits) and paid sick leave that are expected t employees according a to detailed formal plan

terminatednormal the before in which the employees render

using market

vices 44 n. n.

Note 15 Interest-bearing liabilities Note 15. Interest-bearing liabilities

2020 2019 Current Note $000 $000

NSW TCorp borrowings 15(a) 11,685 - Lease liabilities 10(c) 2,827 - 14,512 -

Non Current

NSW TCorp borrowings 15(a) 131,281 144,177 Lease liabilities 10(c) 8,958 - 140,239 144,177

Recognition and measurement

Interest-bearing liabilities Interest-bearing liabilities classified as financial liabilities at amortised cost are initially measured at fair value, net of directly attributable transaction costs. They are subsequently stated at amortised cost using the effective interest method.

Amortised cost is calculated by taking into account any differences between the initial fair value and the final redemption value of the borrowings, such as discounts or premiums. These differences are amortised to profit or loss as part of finance costs over the year of the borrowings on an effective interest basis. Indexation adjustments on the Consumer Price Index (CPI) indexed bonds are also recognised as part of finance costs in profit or loss.

Classification of liability The Corporation has Treasurer’s approval under the Public Authorities (Financial Arrangements) Act to borrow from NSW TCorp up to a total limit of $245.0 million (2019: $245.0 million).

The Corporation forms the view that the borrowing facility takes the nature of an enduring rolling facility whereby the Corporation has discretion to refinance borrowing within the total approval of the Treasurer and within the agreed terms of the Statement of Corporate Intent.

Debt as at 30 June 2020 is classified in accordance with the intended repayment profile. Debt which is forecast to be repaid within 12 months of the reporting date is classified as current. The nominal contractual cash flow maturity profile of the debt portfolio is disclosed in note 20(d).

45

Financial statements • 141 142 Port Authority of New South Wales Annual Report 2019/20 Note 15 security for interest borrowings are secured by NSW Government Guarantee. No assets have been pledged as coupon interest only every six months and repayment or rollover of principal at 2021 to 20 February 2030. NSW TCorp fixed rate loans are characterised by payments of Borrowings consist of NSWTCorp fixed rate loans with maturity dates ranging from 8 April Details regarding fair value, interest (ii) Commonwealth Bank of Australia with balancethe cleared monthly. The Corporation also had a purchasing card facility of $50,000 (201 Commonwealth Bank of Au The Corporation had a credit card facility for$170,000 (201 2019. (i) The Corporation had the following financing facilities in place at (a)

- - - A bank guarantee facility (b) With Commonwealth Bank of Australia - - - and- A global loan facility inclusive of $15.0 million Come With(a) NSWTCorp:

Amount Amount used Total facility Amount unused Amount used Total facility

Fair value Borrowing r Finan

Go facility cial facilities unused continued

epayments

- bearing loans and borrowings.

stralia with balance the cleared monthly.

rate and liquidity risks are disclosed in note

-

30June 2020

( 142,966 102,034 245,000

9 2,000 2,000 : $170,000): thewith $000 2020 9 : $50,000): with the - )

20. and and maturity. All (144,177)

100,823 245,000 3 0 June 2,000 2,000 $000 2019 46 -

Note 16 Dividend payable Note 16. Dividend payable

2020 2019 $000 $000

Dividend payable 13,500 9,000

Recognition and measurement

The present obligation to pay a dividend is established when the shareholders’ approval of the dividend is received. Subsequent to the approval, there will be no further variation of the dividend amount. This occurs through a formal process. The Corporation reviews its financial performance for the financial year and recommends to its shareholders an appropriate dividend payment in light of the current financial position and longer-term financial commitments. Under NSW Treasury’s Financial Distribution Policy for Government Businesses, the Corporation prepares a Statement of Corporate Intent which is an agreement between the relevant Ministers and the Board. This agreement establishes the dividend policy to apply for the year and sets a target dividend, if any, for the business. The dividend scheme of the Corporation also takes into consideration the agreed Target Capital Structure with NSW Treasury in order to maintain an efficient capital structure consistent with the Target Credit Rating.

Prior to 30 June 2020, the Shareholding Ministers approved the dividend recommendation in accordance with the Financial Distribution Policy for Government Entities TPP 16-04 and section 20S of State Owned Corporations Act 1989. Accordingly the dividend payable of $13.5 million (2019: $9.0 million) was recognised, with 50% to be paid prior to 1 August 2020 and the remaining balance prior to 1 December 2020.

NoteNote 17 17. Equity

2020 2019 Note $000 $000

Contributed equity 165,768 165,768 Asset revaluation reserve 17(a) 60,223 60,089 Retained earnings 17(b) 98,295 96,151 324,286 322,008

Recognition and measurement

Contributed equity Ordinary shares are classified as equity.

The State Owned Corporations Act 1989 requires the Corporation to have two voting shareholding Ministers. Each shareholder must, at all times, have an equal number of shares in the Corporation. At 30 June 2020, the shares were held by the Treasurer (The Hon. Dominic Perrottet, MP) and the Minister for Finance and Small Business (The Hon. Damien Francis Tudehope, MP).

47

Financial statements • 143 144 Port Authority of New South Wales Annual Report 2019/20 Note 17 (a) revaluation The asset revaluationAsset reserve transferred assets have been attributable to future maintenance costs concluded that valuation. The fair value assessment conducted by the Corporation prior to the assets transfer Owned Public SectorEntities accordanceIn with NSW PolicyTreasury TPP09 Corporation from Crown Lands at $1. and Housing,representing Crown Lands. for Transport and Roads, r guidelines and accounting standards breakwater and land adjoining the wharf area. An equity transfer These assets included a On 30 June 2020, Equity transfer Income tax equivalent expense on revaluation equipment Fair Balance at 1 July Closing balance Total other comprehensive income property,of plant and equipment

Movementsasset revaluation in reserve value revaluation of property, plant and revaluation reserveis used to record increments and decrements continued of property, plant and equipment.

the on 30 June 2020

transferred assets would re

assets

n existing epresenting the at Eden

, the assets the ,

recognised at

wharf, were transferred to the Corporation from Crown Lands. ,

was agreed in writingin June 2020between the Minister

were wharf extension, Corporation

their their beinggreater than

These assetswere sult sult

transferred to Corporation the the at recipient’s

- 03 03 fair valuefair in in Note Contributionsby Own 9( net negative cash flows

c) , and the Minister for Water, Property

of of berthing box, mooring dolphins, $1.

incremental income , applying equity transferredthe to 60,223 60,089 $000 2020 (58) 134 192 ers made to Wholly made to ers

resulting from which was NSW Treasury 60,089 58,770 1,319 1,884 mainly mainly (565) $000 2019 .

The The the the 48

-

Note 17 continued

(b) Movements in retained earnings

2020 2019 Note $000 $000

Balance at 1 July 96,151 95,518

Net profit for the year 10,825 18,020 Superannuation actuarial gains / (losses) 18(q) 6,884 (11,982)

Income tax equivalent (expense) / benefit on superannuation actuarial gains / losses (2,065) 3,595

Other comprehensive income (expense) 4,819 (8,387)

Transaction with owners in their capacity as owners Dividend declared 16 (13,500) (9,000) Closing balance 98,295 96,151

NoteNote 18 18. Defined benefit benefit superannuation superannuation schemes schemes

The Corporation has three defined benefit superannuation schemes covering certain employees, all of which require contributions to be made to separately administered funds.

Nature of the benefits provided by the fund

The Pooled Fund holds in trust the investments of the following closed NSW public sector superannuation schemes, in which the Corporation participates:

. State Authorities Superannuation Scheme (SASS) . State Authorities Non-Contributory Superannuation Scheme (SANCS) . State Superannuation Scheme (SSS)

These schemes are all defined benefit schemes – at least a component of the final benefit is derived from a multiple of member salary and years of membership. Members receive lump sum or pension benefits on retirement, death, disablement and withdrawal.

All the Schemes are closed to new members.

Description of the regulatory framework

The schemes in the Pooled Fund are established and governed by the following NSW legislation: Superannuation Act 1916, State Authorities Superannuation Act 1987, Police Regulation (Superannuation) Act 1906, State Authorities Non-Contributory Superannuation Act 1987, and their associated regulations.

The schemes in the Pooled Fund are exempt public sector superannuation schemes under the Commonwealth Superannuation Industry (Supervision) Act 1993 (SIS). The SIS

49

Financial statements • 145 146 Port Authority of New South Wales Annual Report 2019/20 Note 18 members’ benefits are adequately protected. retirement incomes policy relating preservation,to vesting and reporting to members and that ensure that the Pooled Fund will conform with the principles of the Commonwealth’s Undera Heads of Government agreement, the New South Wales Government concessional taxation and superannuation guarantee purposes. Legislation treats exemptpublic sector superannuation funds as complying funds for roles: obligation act to solely in bestthe interests of fund beneficiaries. The Trustee has the following The Fund's Trustee is responsible for the governance of the Fund. The Trustee Description of other entities’ responsibilities for the governance of the fund performedJuneatas 30 2021. investigation was perf An actuarial investigation of the Pooled Fund is performed every three years. The last actuarial Commonwealth’sthe retirement incomes policy. Boar legislation.These provisions are in addition to other legislative obligations on Trusteethe Trustee Board activities in a manner consistent with the prudential controls of the SIS The New South Wale . . .

. definedbenefitsare:risksrelating the to There are a number of risks to which Fundthe exposes the Employer. The more significant Descriptionof risks . . . .

risk. diversified mix. asset The defined benefit fundare assets investedwith independent fund managersand have a There were no fund amendments, curtailments or settlements during year.the Description of significantevents

required in accordance with the fund rules; Administration of the fund and payment to the beneficiaries from fund assets when Management and investment of the fund assets; and Compliance with otherapplicable regulations. Investment risk Employer will need to increase Longevity risk pensions. assumed, increasing futur Pension indexationrisk Salary growth risk benefit amounts and thereby requiring additional employer contrib active members will be based) will rise more rapidly than assumed, increasing defined Legislative risk cost ofcost providing definedthe benefits.

d andinternalprocesses monitor that Trustee the Board’s adherence principles to the of

continued

-

-

s Government prudentially monitors and audits the Pooled Fund and the -

The Fund has no significant concentrationinvestment of risk or liquidity The risk that pensionerslive longer than assumed, increasing future

The risk is that legislative changes could be made which increase the ormed as at 30 June 2018.The next actuarial investigation will be The risk that investment returns will be lower than assumed and the -

The thatrisk wagessalaries or which(on future benefitamounts for

e pensions.

-

The risk that pensions will increase at a rate greater than

contributions to offset this shortfall.

utions

.

undertakes to

has a legal

50

Note 18 continued

Amounts in the statement of financial position

2020 2019 $000 $000

Defined benefit liability 14,488 20,038

Recognition and measurement

A liability or asset for the defined benefit superannuation plans is recognised in the statement of financial position and is measured as the present value of the defined benefit obligations at the reporting date less the fair value of the superannuation fund’s assets at that date. The present value of the defined benefit obligations is based on expected future payments which arise from membership of the fund to the reporting date, calculated annually by independent actuaries using the projected unit credit valuation method. Consideration is given to expected future wage and salary level, experience of employee departures and years of service.

Expected future payments are discounted using market yields at the reporting date on high quality corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

(a) Reconciliation of the net defined benefit liability/(asset)

SASS SANCS SSS Total At 30 June 2020 $000 $000 $000 $000 Opening net defined benefit liability/(asset) 8,712 1,196 10,130 20,038 Current service cost 348 119 301 768 Net Interest on the net defined benefit liability 257 35 298 590 Actual return on Fund assets less Interest income 87 4 749 840 Actuarial (gains) / losses 99 141 (7,964) (7,724) Employer contributions - - (24) (24) Closing net defined benefit liability 9,503 1,495 3,490 14,488

51

Financial statements • 147 148 Port Authority of New South Wales Annual Report 2019/20 Note 18 (b)

obligationsat end of the year Present value of defined benefit Taxes,premiums & expenses paid Benefits paid Actuarial (gains) losses/ Contributions by participants Interest costs Currentservice costs obligations at beginning of the year Present value of defined benefit Yearended 30 June 2019 obligationsat end of the year Present value of defined benefit Taxes,premiums & expenses paid Benefits paid Actuarial Contributions by participants Interest costs Currentservice costs obligations at beginning of the year Present value of defined benefit Year Closing net defined benefit liability Employer contributions Actuarial (gains) losses/ income Actual return on Fund assetsless Interest liability NetInterest on netthe defined benefit Currentservice cost liability/(asset) Opening net defined benefit At 30 June 2019

Reconciliation of the

ended 3

( continued gains

0 June ) / losses / )

20

20

defined

benefit obligation

(2,586) (3,132) 31,154 29,501 29,439 31,154 SASS SASS SASS 2,325 1,129 8,712 2,325 6,546 (116) $000 $000 (882) $000 245 456 230 856 348 269 456

84 99 (2)

SANCS SANCS SANCS 3,562 3,487 3,465 3,562 (366) (452) $000 $000 1,196 $000 180 130 123 141 119 (98) 180 123 952 (1) 96 39 8 - - -

124,932 110,403 115,550 124,932 (5,766) (5,680) (7,964) 14,876 4,419 3,600 (4,419) 10,130 14,876 $000 $000 SSS SSS 662 110 228 245 116 301 (510) $000 SSS (24) (21) 228

159,648 143,391 148,454 159,648 (8,718) (9,264) (7,724) 17,381 5,678 4,552 Total Total (5,399) $000 $000 20,038 17,381 754 355 807 128 346 768 6,988 Total $000 (26) 287 807 52

Note 18 continued

(c) Reconciliation of the fair value of Fund assets

SASS SANCS SSS Total Year ended 30 June 2020 $000 $000 $000 $000 Fair value of Fund assets at beginning of the year 22,442 2,366 114,802 139,610 Interest income 599 61 3,302 3,962 Actual return on Fund assets less Interest income (87) (4) (749) (840) Employer contributions - - 24 24 Contributions by participants 230 - 116 346 Benefits paid (3,132) (452) (5,680) (9,264) Taxes, premiums & expenses paid (116) (1) 245 128 Fair value of Fund assets at end of the year 19,936 1,970 112,060 133,966

SASS SANCS SSS Total Year ended 30 June 2019 $000 $000 $000 $000 Fair value of Fund assets at beginning of the year 22,955 2,535 110,913 136,403 Interest income 860 91 4,440 5,391 Actual return on Fund assets less Interest income 882 98 4,419 5,399 Employer contributions 2 - 24 26 Contributions by participants 245 - 110 355 Benefits paid (2,586) (366) (5,766) (8,718) Taxes, premiums & expenses paid 84 8 662 754 Fair value of Fund assets at end of the year 22,442 2,366 114,802 139,610

(d) Reconciliation of the effect of the asset ceiling

There is no change in the effect of the asset ceiling.

53

Financial statements • 149 150 Port Authority of New South Wales Annual Report 2019/20 Note 18 such,disclosures As the below relate Pooledto totalof assets theFund. is not possible or appropriate to disaggregate and attribute fund assets to in through independent fund managers, assets are separatelynot invested foreach entity and it All Pooled Fund assets are invested by SAS Trustee Corporation (STC) at arm’s length (e) managerslimit make and cannot be used for speculative purposes or gearing of the investment portfolio.As such, facilitateefficient cashflow management or to hedge the portfolio against market movements each manager'sinvestment mandate Derivatives, including futures and options, can be used by investment managers. However, hedgedebt; funds. inassets this level areunlisted property; unlisted shares; unlisted infrastructure; distressed Level 3 identical assets or liabilities. corporate bonds; unlisted trusts where quoted prices are available in active markets for indirectly.The assets in this level are cash; notes; g Level 2 level arelisted shares; listed unit trusts. Level 1 Total Alternatives Property International Australian equities interest International fixed Australian fixed interest Short termsecurities Asset category

Fair valueFair of

- -

-

inputsother than quoted prices observable for assetthe or liability either directly or quoted prices in active markets for inputs for the orasset liability that are basednot on observable market data. The continued

equities

Fund assets

ed use of derivatives.

identical assets

Quoted prices markets for

2 11,487,308 0,977,368 6,901,927 1,889,512 in activein 644,805 Level 1 clearly states that derivatives may only be used to

30,408 23,408 $000

- identical assets or liabilities.The assets in this

observable Significant 10,360,897 1,879,015 1,066,448 2,206,787 4,337,075 392,284 463,022 L 16,266 inputs evel 2 $000 overnment, semi

Unobservable 8,853,745 6,162,350 2,691,395 Level 3 inputs $000 - government and dividual entities. dividual - - - - -

40,192,010 10,522,833 11,950,330 7,294,211 1,909,423 1,066,448 4,096,299 3,352,466 Total $000 54

Note 18 continued

The percentage invested in each asset class at the reporting date is:

2020 2019 Cash 10.2% 9.6% Australian fixed interest 2.7% 5.4% International fixed interest 4.8% 4.7% Australian equities 18.1% 19.8% International equities 29.7% 27.0% Property 8.3% 8.5% Alternatives 26.2% 25.0% Total 100.0% 100.0%

(f) Fair value of the Pooled Fund assets

The fair value of the Pooled Fund assets as at 30 June 2020 include $36.9 million (2019: $99.5 million) in NSW government bonds.

(g) Significant actuarial assumptions

2020 2019 Discount rate 2.85% pa 2.95% pa Salary increase rate 3.20% pa 3.20% pa (excluding promotional increases) Rate of CPI increase Refer (i) below Refer (i) below Pensioner mortality Refer (ii) below Refer (ii) below

(i) Rate of CPI increase used by independent fund managers

For 2020, a range of CPI increase assumptions was used as follows: . 2019/20: 1.00% pa . 2020/21: 0.25% pa . 2021/22: 1.50% pa . 2022/23: 1.25% pa . 2023/24: 1.75% pa . 2024/25 and 2025/26: 2.00% pa . 2026/27 to 2029/30: 2.25% pa . 2.50% pa thereafter.

For 2019, a range of CPI increase assumptions was used as follows: . 2018/19 and 2019/20: 1.75% pa . 2020/21: 2.00% pa . 2021/2022 and 2022/23: 2.25% pa . 2.50% pa thereafter.

(ii) Pensioner mortality

The pensioner mortality assumptions are as per the 2018 Actuarial Investigation of the Pooled Fund. These assumptions are disclosed in the actuarial investigation report available from the trustee’s website. The report shows the pension mortality rates for each age.

55

Financial statements • 151 152 Port Authority of New South Wales Annual Report 2019/20 Note 18

assumptions, and scenarios G and H relate to sensitivity to demographic ass Scenarios AF to relate sensitivity to of totalthe defined benefit obligation economic to contribution tax provision which is calculated based on assetthe level at 30 June 2020. is presented below. The defined total benefit obligation disclosed is inclusivethe of The Corporation's total defined benefit obligation as at 30 June 2020 under several scenarios (h)

$’000 Defined benefit obligation $’000 Defined benefit obligation inflationSalary rate Rateof CPI increase Discount rate $’000 Defined benefit obligation inflationSalary rate Rateof CPI increase Discount rate $’000 Defined benefit obligation inflationSalary rate Rateof CPI increase Discount rate

Sensitivity analysis

continued

Base case Base case Base case Base case As above As above As above As above As above As above As above As above As above 148,454 148,454 148,454 148,454

- 0.5 As above plus As above plus +0.5%rate of increase rate +0.5% salary CPI increase mortality % discount Scenario Scenario A Scenario C Scenario As above As above As above As above As above As above As above - 0.5% pa 0.5% pa 150,708 149,008 1 157,667 0.5 5 Lower 8,059 %pa rate

( G * E )

Scenario B+ - 0.5%rate ofCPI As aboveAs minus As above umptions. discount rate

increase rate mortality - 0.5% salary Scenario Scenario D Scenario As above As above As above As above As As above As above increase + 0.5% pa 0.5% pa 139,709 146,700 147,919 139,995 0.5 Higher above minus

0.5

%pa

( ** % H F 56 )

Note 18 continued

(*) Assumes the short term pensioner mortality improvement factors for years 2020-2023 also apply for years after 2023.

(**) Assumes the long term pensioner mortality improvement factors for years post 2023 also apply for the years 2020 to 2023.

The defined benefit obligation has been recalculated by changing the assumptions as outlined above, whilst retaining all other assumptions.

(i) Asset-liability matching strategies

The Trustee monitors its asset-liability risk continuously in setting its investment strategy. It also monitors cashflows to manage liquidity requirements. No explicit asset-liability matching strategy is used by the Trustee.

(j) Funding arrangements

Funding arrangements are reviewed at least every three years following the release of the triennial actuarial review. Contribution rates are set after discussions between the employer, STC and NSW Treasury.

Funding positions are reviewed annually and funding arrangements may be adjusted as required after each annual review.

(k) Surplus/deficit

The following is a summary of the 30 June 2020 financial position of the Fund calculated in accordance with AASB 1056 Superannuation Entities:

SASS SANCS SSS Total $000 $000 $000 $000 Year ended 30 June 2020 Accrued benefits (*) 23,495 2,786 76,112 102,393 Net market value of Fund assets (19,936) (1,970) (112,060) (133,966) Net (surplus) / deficit 3,559 816 (35,948) (31,573)

Year ended 30 June 2019 Accrued benefits (*) 24,418 2,848 76,217 103,483 Net market value of Fund assets (22,442) (2,366) (114,802) (139,610) Net (surplus) / deficit 1,976 482 (38,585) (36,127)

(*) There is no allowance for a contribution tax provision within the Accrued Benefits figure for AASB 1056. Allowance for contributions tax is made when setting the contribution rates.

(l) Contribution recommendations

There are no recommended contribution rates for the Corporation.

57

Financial statements • 153 154 Port Authority of New South Wales Annual Report 2019/20 Note 18 lightIn of the current environment due to C AASB 1056 Sensitivity Superannuation Entities: The economic assumptions adopted for the 30 June 20 (m) for Paragraph 145 provides guidea to expected outcomes especially in the short to medium term. The information on sensitivities variation in the rate of returnon fund assets in current financi return on the fund assets (discount rate). Due to this variation and the potential for material The one assumption that differs substantially under the two standards is the expected rate of impact of the changes in these assumptions. the sensitivity of results underAASB 119 gives an indication to the directional and proportional standards. While underlthe assumptions for CPI, Salaryand demographics broadlyare the same underboth reporting For AASB 1056, separatesensitivities are not included. However, we note that the this assumption for AASBthe 1056 results AASB 1056 results. Scenarios A and B relate to Accrued benefits inflationSalary rate Rateof CPI increase (discount rate) assets backing other liabilities Expected rate of return on Fund liabilities (discountrate) assets backing current pension Expected rate of return on Fund Expected rate of CPI increase Expected salary increase rate backing other liabilities Expected rate of return on Fund assets backing current pension liabilities Expected rate Weighted

Economic assumptions continued - Average Assumptions

of return on Fund assets $’000

a

nalysis

ying liability amounts forAASB 1056lower are than for AASB 119, the the

sensitivity of the Total Accrued Benefits figure shown in the

how this could affect the defined benefit obligation. 3.2% pa 2.0% pa 6 7.0% 102,393 .0% Base in the table shown below. case OVID

pa pa

- 19, there is increased volatility in terms of - 0.5% Asbase case Asbase case 20 Scenario A 2.0% pa 3.2% pa 6.0% pa 7.0% pa discount

inaccordance with 5.5% pa 6.5% pa 20 106,292 al conditions, rate

Scenario B+0.5% the the discount rate Asbase case Asbase case sensitivities to AASB 1056 2.2% pa 3.2% pa 6.4% pa 7.4% pa 6.5% pa 7.5% pa 98,773 2019

58

Note 18 continued

(n) Expected contributions

No employer contributions are expected to be paid to any of the schemes in the next reporting year.

(o) Maturity profile of defined benefit obligation

The weighted average duration of the defined benefit obligation is 11.8 years (2019: 11.5 years).

(p) Profit and loss impact

SASS SANCS SSS Total 2020 $000 $000 $000 $000 Current service cost 348 119 301 768 Net interest 257 35 298 590 Profit and loss component of the defined benefit cost 605 154 599 1,358

SASS SANCS SSS Total 2019 $000 $000 $000 $000 Current service cost 456 123 228 807 Net interest 269 39 (21) 287 Profit and loss component of the defined benefit cost 725 162 207 1,094

(q) Other comprehensive income

SASS SANCS SSS Total 2020 $000 $000 $000 $000 Actuarial losses on liabilities 99 141 (7,964) (7,724) Actual return on Fund assets less Interest Income 87 4 749 840 Total remeasurement in Other Comprehensive Income 186 145 (7,215) (6,884)

SASS SANCS SSS Total 2019 $000 $000 $000 $000 Actuarial losses on liabilities 2,325 180 14,876 17,381 Actual return on Fund assets less Interest Income (882) (98) (4,419) (5,399) Total remeasurement in Other Comprehensive Income 1,443 82 10,457 11,982

59

Financial statements • 155 156 Port Authority of New South Wales Annual Report 2019/20 Note 19 At 30 June 2019 At accounting standard The Corporationclassifies itsnon (a) valuationthe techniques. categorises, for disclosure purposes, the valuation techniques based on the inputsuse observable inputs and minimises the use of unobservable inputs. Under AASB 13, entitythe When me principal market, in the most advantageous market for the asset or liability. liability takes place either in the principal market for the asset or liability or in the absence of a measurement is based on p the orderly transaction between market participants at the measurement date. The fair value Fair value is price the that would be received to sell an or asset paid to transfera liability in an Note 1 assets by valuation technique: The Corporation uses the following hierarchy fordisclosing the valuefair non of werenoThere transfers between

Total Investmentproperty (i) (note 9(a)) Wharves,and jettiesbreakwaters Roadways andbridges Landand buildings Total Investment property (note 9(a)) Wharves,and jettiesbreakwaters Roadways andbridges Landand buildings 9(a)) 9(a))

30 June 2020 

Fair valueFair hierarchy

9 Level 1 .

asuring fair value, valuationthe technique used maximises the use of relevant

Fair value Financial riskmanagementobjectives andpolicies -

inputs are

(note 9(a)) (note 9(a)) AASB 13

(i)

(note (note

measurement of non quoted prices in active markets for identical assets.

Fair Value Measurement

resumption that the transaction to sell asset the or transfer the any levels

- financial assets into three levels prescribed under the Level 1 Level 1 $000 $000 in in ------

either - financial assets

year. Level 2 Level 2

7,700 7,700 8,000 8,000 $000 $000 per below:

------

359,088 299,259 350,061 295,436 Level Level 3 49,939 42,658 11,967 9,890 $000 $000 3

- -

366,788 299,259 358,061 295,436 - financial 49,939 42,658 11,967 7,700 9,890 8,000 Total Total $000 d in $000 60

Note 19 continued

 Level 2 - inputs are observable inputs, either directly or indirectly. Inputs are observable using market data. Adjustments to level 2 inputs include factors specific to the asset, including the condition, location or comparability of the asset.

 Level 3 - inputs are unobservable inputs. If an observable input requires an adjustment using an unobservable input and that adjustment results in a significantly higher or lower fair value measurement, the resulting measurement is categorised within Level 3 of the fair value hierarchy.

For the recurring fair value measurements categorised within level 3, the reconciliation from opening to closing balances is disclosed in note 9(c).

(i) Investment Property The assets contributing to earning rental income and held for capital appreciation are recognised as investment property (refer to note 11). The fair value of the investment property was revalued during the year and resulted in a loss of $0.4 million (2019: nil) recognised in profit or loss in this financial year (refer to note 5). Refer to note 11 for the movement reconciliation. Investment property is disclosed in the fair value hierarchy table above as level 2 as only observable inputs were used in the valuation. Details on the valuation basis and inputs used for the valuation are described in note 11.

(b) Valuation techniques, inputs and process

For the non-financial assets classified as level 3 assets (land and buildings, roadways and bridges, wharves, jetties and breakwaters), details on the valuation basis, inputs used for the valuation and process are described in note 9(a).

(c) Sensitivity analysis of key unobservable inputs in level 3 of the fair value hierarchy

(i) Land Land is measured using the market approach by reference to a number of industrial, port related use and special use zoned properties. Its measurement is categorised within level 3 of the fair value hierarchy as its fair value is derived by adjusting an observable market input using an unobservable input. The unobservable input is the application of a discount to the value of the land to reflect restrictions on the use of land due to its zoning and use for port purposes. The value of the land can be heavily discounted, with majority in the range from 45% to 80%. Any change in the discount rate applied impacts directly on the value of the land. A +/- 5% sensitivity of the discount rate would result in the carrying value of the land being varied by $10.6 million (2019: $10.8 million).

(ii) Buildings and infrastructure Buildings and infrastructure assets are measured at the replacement cost of the asset’s remaining future economic benefits. These measurements are categorised within level 3 of the fair value hierarchy as their fair values are derived from unobservable inputs.

Buildings The fair value of the buildings will increase/decrease if the replacement costs increase/decrease. Replacement cost is derived from estimates of rate per square metre. Another major unobservable input is the estimate of remaining useful lives of the assets. Any change in the estimates of remaining useful lives impacts directly on the value of the buildings.

A +/- 5% sensitivity on the estimates of the remaining useful lives or estimates of rate per square metre would result in the carrying value of the buildings being varied by $4.6 million (2019: $4.7 million).

61

Financial statements • 157 158 Port Authority of New South Wales Annual Report 2019/20 Note 20 Note 19 Unde The TCorp acts as a risk and management activities and reviews and agrees policies for managing each of these risks. The whilstprotecting future financialsecurity. The objective of the liquidity risks in accordance with the the assets. Any change in the estimates of remaining useful lives impacts directly on the value of metre. increase/decrease. Replacement cost is derived from estimates of cost per unit times per valuefair of the infrastructure assets will increase/decrease if the replacement costs by th Note A +/ Infrastructure assets include roadways and bridges,wharves, jetties and breakwaters. Infrastructure assets The statements. Further quantitative and qualitative disclosures are included throughout the with TCorpIM Cash Fundreceivables,, payables timesperunit met The operatio directly from the is reviewed by the Board on a continuous basis. The

  infrastructure assets - Corporation

Corporation e

Corporation rstanding 5%sensitivity on the estimates of the remaining useful lives Corporation’s 20. Corporation The other other The the the the the roadways and bridges being varied by ns. treasury managementpolic Corporation

continued

wharves, jetties and breakwaters being varied by

Financial risk management objectives and Financial riskmanagementobjectives andpolicies (MOU) (MOU) n agent for Corporationthe in accordance with the MOU.

’s main risks arising from financial instruments are outlined below manages its exposure to key financial risks, including interest rate, credit and ’s principal financial instruments comprise cash, re major unobservableinput isestimate the ofremaining use , to set risk limits and controls and to monitor risks. Compliance with policies Corporation

se

’s objectives, policies and processes for measuring and managing risk. Board is responsible for the establishment and oversight of risk would result in the carrying value of

in placewith TCorp assistto polic .

ies

’s operationsare or required to finance the is to support the deliveryof the ies Corporation

are

established identify to and analyse the risks faced

and and The Corporation has a

’s ’s $ 0.5 loans.These financial instruments arise with the management of risk and

million (201 million :

policies $ treasury management polic 2.2 Corporation

and estimatethe of cost per million (201 million 9 : funds on deposit in

$0. 5

million ’s financial’s targets Memorandum of its 9 ful lives

: debt portfolio. Corporation the the $ ) 2. ; and ; 5

financial together million

of

The The ies the the the 62 ’s ’s ) . .

Note 20 continued

(a) Financial instrument categories

2020 2019 $000 $000 Note Category Financial assets Cash and cash equivalents 7 Not applicable 17,351 17,015

Debt instrument at Trade and other receivables* amortised cost 14,702 13,274

Debt instrument at Lease incentive receivable 8 amortised cost 2,769 1,595

Debt instrument at Finance lease receivable 8 amortised cost 103,169 96,449 137,991 128,333

2020 2019 $000 $000 Note Category Financial liabilities Financial liabilities measured at Trade and other payables* amortised cost 18,904 15,714

Financial liabilities measured at Lease liabilities 10 amortised cost 11,785 -

Financial liabilities measured at Borrowings 15 amortised cost 142,966 144,177 173,655 159,891

*Trade and other receivables exclude statutory receivables and prepayments. Trade and other payables exclude statutory payables and unearned income. Therefore the amounts disclosed above will not reconcile with the statement of financial position.

63

Financial statements • 159 160 Port Authority of New South Wales Annual Report 2019/20 Note 20 The Corporation’s exposure to interest rate risk is set out below. levelinterest of rate vo rates. The basis is reviewed annually and amended where there is a structural change in the A reasonably possible change of +/ profit as available CorporationThedid not any accountfor atloans fixed ratevalue fair through and repaym requires that portfoliothe is appropriately structured to ensure it reflects the forecast borrowing balance and compositionof portfolio the E (i) assumes that all other variables remain constant. position The sensitivity analysis is based on risk exposures in existence at the until end the of nextthe annual reporting whichenvironmentin the variableinchange risk ininformation the below for The effect on profit and equity due to a reasonably possib does not enter into commodity contracts. TCorpIM Cash Fund primarilyare through fluctuate because of changes in market prices. The orvalueis risk the Market that futurea financial risk of fair cashthe flows willinstrument (

b) Marketb) risk Net exposure equivalents Cashand cash Financial assets At 30 June 201 Net exposure equivalents Cashand cash Financial assets At xpo

Interest rateInterest risk 30 June 2020 sure interestto rate riskar or

loss orequity. date.The analysis ent profile. continued -

for

- sale.Therefore, forthese loans, a change in interestrat 9

. The. the the latility. latility.

The policy also limit s price risks associated with the movement in the unit price of the Corporation Corporation has been determined after taking into account economicthe

was

interestrate riskand other

Carrying perf ises amount 17,015 17,015 17,351 17,351

- $000 $000 ormedon thesame

1% is used, consistent with current trends in interest primarily through the Corporation’s borrowings. The operates and the time frame for the assessment (i.e. has no is is

period

governedby aCorporation p s

the type of instruments that can be obtained. impact on material ). ). Post tax tax Post +1% (100+1% basis

profit $000 $000 points) 119 119 121 121 Corporation

exposure to foreign currency risk and

le change in risk variable basis for both years price risk. A reasonably possible

Equity $000 $000 119 119 121 121

’s exposures to market risk

impact on statementof financial olicy document which Post tax tax Post - es would affectnot 1% (100 basis profit (119) (119) (121) (121) $000 $000 points) profit or loss . The analysis

s is outlined outlined is

Equity (119) (119) (121) (121) $000 $000

64 or or

Note 20 continued

(ii) Other price risk – TCorpIM Cash Fund

Exposure to ‘other price risk’ primarily arises through the investment in the TCorpIM Cash Fund, which is held for strategic rather than trading purposes. The Corporation has no direct equity investments. The Corporation holds units in the TCorpIM Cash Fund. The unit price of the fund is equal to the total fair value of the net assets held by the fund divided by the number of units on issue. Unit prices are calculated and published daily. In the fair value hierarchy, the TCorpIM Cash Fund is classified as Level 2 because prices are observable, however, no active market exists for these funds as they are only accessible to government agencies.

2020 2019 Investment Investment $000 $000 Facility sectors Horizon Note Cash, Money market Up to 1.5 TCorpIM Cash Fund instruments years 7 16,608 14,898

TCorp is trustee for the above fund and is required to act in the best interest of the unit holders and to administer the trust in accordance with the trust deed. As trustee, TCorp has appointed external managers to manage the performance and risks of the fund in accordance with a mandate agreed by the parties. TCorp has also leveraged off internal expertise to manage certain fixed income assets for the TCorpIM funds. A significant portion of the administration of the funds is outsourced to an external custodian.

TCorp has adopted a new approach of applying a flat 10% sensitivity across all funds, including the above fund, which is consistent with best market practice for investment funds. The fund is designated at fair value through profit or loss and therefore any change in unit price impacts directly on net results. A reasonably possible change is based on the percentage change in unit price, as advised by TCorp, multiplied by the redemption value at 30 June each year for each fund.

Change in Post tax impact on profit unit price Higher/(Lower) 2020 2019 $000 $000 TCorpIM Cash Fund +/-10% 1,163 1,043

(c) Credit risk

Credit risk arises when there is the possibility of the Corporation’s debtors defaulting on their contractual obligations, resulting in a financial loss to the Corporation. The maximum exposure to credit risk is generally represented by the carrying amount of the financial assets (net of any allowance for ECL).

Credit risk arises from the financial assets of the Corporation, which comprise of cash, trade and other receivables. The Corporation has not granted any financial guarantees.

The Corporation considers a financial asset in default when contractual payments are 120 days past due. However, in certain cases, the Corporation may also consider a financial asset to be in default when internal or external information indicates that the Corporation is unlikely to receive the outstanding contractual amounts in full before taking into account any credit

65

Financial statements • 161 162 Port Authority of New South Wales Annual Report 2019/20 Note 20 TCorpfrom (*) togethe The following table summarises the maturity profilethe of Corporation’s financial liabilities, statement of financial position principal cash flows) of each class of financial liabilities and therefore will reconcile not to the The nominal amounts are contractualthe undiscounted cash flows ( The maturity profile is based on the remaining contractual maturity period at the reporting date. ispayment made unsecured) are settled in accordance with trade terms. If trade received, whether or not invoiced Liabilities are recognised for amounts due to be paid in the future for goods or services deemed insignificant based on prior No haveassets been pledged as collateral. The During currentthe and prioryears, there were no defaults or breaches on any loans payable. Provided that these aims are met, the policy also aims to minimise net finance cos is, its aim is to ensure that new funding and refinancing can be obtained when required availfunds assets. The aim of liquidity risk management is to ensure that the future cash flowsand maturities planning ensureto when fallthey due.The Liquidity risk is the risk that the (d) in creditrisk enhancementsheld bythe Corporation.

liabilities bearing Interest liabilities Lease payables and other Trade liabilitiesFinancial At 30June 2020

The The Liquidity risk interest rate interest r withr the interest rate exposure.

. able meet to its obligations onboth a day day to

Weighted Weighted 3.95 continued effective effective average amid interest interest 3.21%

% rate

N/A is inclusive of an average government guarantee of fee is average of government inclusiveguarantee an

(*) within 28 days of recognition. the the

COVID Carrying Carrying 173,655 142,966 11,785 18,904 Corporation Value $000

-

. 19 pandemic.

Nominal Nominal Corporation 199,894 168,077 amount

12,913 18,904 at at $000

year

reporting continuously manages liquidity risk through monitoring

The The

s’ data and a current assessment interest interest 154,751 142,966

Corporation did not identify 11,785

Fixed will be unable to meet its payment obligations $000 Interest rate exposure Interest

rate date -

Corporation . Amounts owing to suppliers(which are an Variable Variable interest interest adequate holding of high quality liquid

$000 rate

basisand in the longerterm. - - - -

1. ’s exposure liquidity to risk is interest interest bearing 09% 18,904 18,904

Non $000 including Corporation termsspecified,not are (2019: 0.78% - - -

a significant increase 38,962 16,859 18,904

of risk. 3,199 $000 Contractual Maturity Maturity Contractual year both interestboth and < 1 < 1

has sufficient

) on

69,727 61,240 ts. Dates years

8,487 borrowings $000

1 - 5 -

That 66 91,205 89,978 years 1,227 . $000

> 5 > 5 -

Note 20 continued

Contractual Maturity At 30 June 2019 Interest rate exposure Dates Weighted average Fixed Variable Non- effective Carrying Nominal interest interest interest < 1 1-5 > 5 interest Value amount rate rate bearing year years years rate $000 $000 $000 $000 $000 $000 $000 $000 Financial liabilities Trade and other payables N/A 15,714 15,714 - - 15,714 15,714 - -

Interest bearing liabilities 3.64% (*) 144,177 173,399 144,177 - - 5,322 64,502 103,575 159,891 189,113 144,177 - 15,714 21,036 64,502 103,575

(e) Fair value compared to carrying amount

Financial instruments are generally recognised at cost, with the exception of the TCorpIM Cash Fund, which is measured at fair value. The value of the TCorpIM Cash Fund is based on the Corporation’s share of the market value of the underlying assets of the facility.

Except where specified below, the amortised cost of financial instruments recognised in the statement of the financial position approximates the fair value because of the short-term nature of many of the financial instruments.

The following table details the financial instruments where the fair value differs from the carrying amount:

2020 2020 2019 2019 Financial liabilities $000 $000 $000 $000 Carrying Carrying Fair value Fair value amount amount

NSW TCorp borrowings 142,966 157,796 144,177 155,370

The fair values have been calculated by discounting the expected future cash flows at prevailing market rates varying from 0.363% to 1.402% (2019: from 1.209% to 2.001%).

(f) Fair value recognised in the statement of financial position

The Corporation uses the following hierarchy for disclosing the fair value of financial instruments by valuation technique:

. Level 1 - Derived from quoted prices in active markets for identical assets/ liabilities. . Level 2 - Derived from inputs other than quoted prices that are observable directly or indirectly. . Level 3 - Derived from valuation techniques that include inputs for the asset/ liability not based on observable market data (unobservable input).

The fair values of the financial instruments as well as the method used to estimate the fair value are summarised in the table below.

67

Financial statements • 163 164 Port Authority of New South Wales Annual Report 2019/20 Note 20 June 2020 No financial liabilities were measured at fair value in the statement of financial position at

each major project investment and followi BoardThereviews and agrees policiesfor managing the balance. while maximisingreturn the stakeholdersto throughoptimisation ofthe and debt equity The ( There were no transfers between Level 1 and 2 during the year. Capital Structure Policy for Government Business The gearingThe ratio capitalthe structure, the Gearing ratio g Gearing ratio Total debt and total equity Total debt TCorpIM Cash Fund TCorpIM Cash Fund Financialassetsat fairvalue ) Capital management Corporation

and and continued

30June 2019.

manages its capital ensureto it will be able continue to as a going concern, s

at at 302020 June

Corporation

and and

ma

y adjust the amount of dividends paid to shareholders. 3 0 June 2019 ngconsultation with 2019 20 Note

1 5

(TPP16

were Level 1

capital structure when considering - $000 03)

as .

- - follows:

In order to maintain or adjust

NSW NSW Level 2 14,898 16,608 479,037 154,751 32. $000

$000 2020 30% Treasury

Level 3

$000

in - - 466,185 144,177 -

30.93% line withline $000 2019 14,898 16,608 Total $000 30 30 68

NoteNote 21 21. Commitments

(a) Capital expenditure commitments

Forward obligations under major contracts committed at 30 June 2020 but not otherwise brought to account have been assessed at $10.8 million including GST (2019: $8.0 million). The $10.8 million includes GST input tax credits of $1.0 million that are expected to be recoverable from the Australian Taxation Office (ATO).

Capital commitments contracted at balance date, for the Corporation, are as follows:

2020 2019 $000 $000 Not later than one year 10,818 8,046 Later than one and not later than five years 13 - Total including GST 10,831 8,046

(b) Operating lease commitments - as lessor

The future minimum lease receivable under non-cancellable operating leases as at the statement of financial position date not recognised in the financial statements are receivable as follows:

2020 2019 Receivable $000 $000 Not later than one year 12,643 16,088 Later than one and not later than five years 37,018 38,017 Later than five years 51,224 56,902 Total including GST 100,885 111,007

The above total includes GST output tax of $9.2 million (2019: $10.1 million) that is expected to be paid to the ATO. These lease receivables relate to property leases with remaining terms of between one and 18 years.

Leasing arrangements

All receivable leases are entered into at commercial rates and terms. Regular market valuations and tendering processes are carried out to ensure commercial arrangements are maintained.

69

Financial statements • 165 166 Port Authority of New South Wales Annual Report 2019/20 Note 22 Note 21 been recognised consideration in calculating these future payments Government ban on cruise ships and any offsetting cost savings the insurer may take into future pandemic further insurance recovery payments. addition In to insurance recovery payment has been approved Based on the preliminary review analysis undertaken by the insuranc being analysed and associated businesses from The Corporation Contingent assets is considered not remote or able to be reliably measured. contingencies. At datethe of this report, the Corporation is not aware of any circumstance that counsel, assessto the requirement for the accounting recognition and d business operations. It has regular reviews, including updates from internal and external legal The Contingent liabilities Note Corporationthe is a lessee are now recognised on the statement of financial position. Pursuant to the adoption of AASB 16 on 1 July 2019, most liabilities relating to leases where land and motorvehicles. expected beto recoverable from ATO. the The expenditure commitment relates to rental of The above total includes GST input tax credits of $0.01 million (2019: $1.4 million) that are follows: statement of financial position date not recognised in the financial statementsare payable as The future minimum lease payments under non Operating (c) commitments lease Not lateroneNotyear than Payable Total including GST Later than five years Later than one and not later than five years    Corporation is subject to various actual and pending business claims arising from normal

22.

Federal and State Government restrictions on the movement of cruise ships and insurance recoverypayments Cruise ship revenues (i.e.pilotage, navigation, site occupancy) Rental losses from impacted tenants; and Additionalincurred costs to manage NSW Health and Safety directives.

is continued

still uncertain

the approved interim insurance recovery payment, the Corporation C Contingencies ontingen . has submitted a business

reviewed:

due to the COVID

cies These leases have remaining of terms between one , the Corporation Corporation the ,

–

as lessee However, which is dependent on the period of the Federal - 19 pandemic 19 interruption claim is not able reliably to estimate amountthe of any

and received

as . -

cancellable operating leases asat the

t he full financial impact of Accordingly, a contingentasset has not

.

Thereare three

for the by 30June 2020.Refer 3.note

financial impact

e company 2,309 1,251 1,052 $000 2020 financial isclosureof these 6

the COVID and 16 years. 16 and

may receive , a categories

n interim result 15,273 11,223

3,466 $000 2019 - ing 584 19 19 70

Note 23 .23 ConsultancyConsultancy fees fees

Consultancy fees refer to fees paid to a consultant in relation to services engaged under contract on a temporary basis to provide recommendations or high-level specialist or professional advice to assist decision-making by management.

Total fees paid and payable to consultants during the year was $63,000 (2019: nil).

Note 24 .24 RelatedRelated party party disclosure disclosuress

Ultimate parent

The New South Wales Government is the ultimate parent of the Corporation.

(a) Key management personnel

The Corporation defines key management personnel as those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly and indirectly. They include the Corporation’s board members, portfolio ministers or equivalent, shareholding ministers, the chief executive and the executive team.

Compensation for key management personnel

2020 2019 Benefit $000 $000 Short term employee benefits 3,225 3,816 Post-employment benefits 184 202 Other long term benefits 34 55 Termination benefits 447 464 Total 3,890 4,537

Directors’ remuneration includes emoluments and other benefits paid, or due and payable, to Directors. Included in the above is the Directors’ remuneration $0.3 million (2019: $0.4 million).

During the year the Corporation did not enter into any disclosable transactions with key management personnel, their close family members and controlled and jointly controlled entities thereof.

(b) NSW Government-related entities

During the year, the Corporation entered into transactions with NSW Government related entities that are controlled, jointly controlled, or significantly influenced by NSW Government. These transactions in aggregate are a significant portion of the Corporation financial results. They are all arm’s length transactions in the ordinary course of the business of the Corporation.

71

Financial statements • 167 168 Port Authority of New South Wales Annual Report 2019/20 Note 24 Note 25 legislative amount Subsequent to Non v their an update to their valuations as at 30 June 2020. In August 2020, both Corporation’s independentvaluers, Aon and MDA, wererequested by management provideto uncertainty Subsequent to A Note 2 disclosurein financial the statements T eventsoccurring after the balance sheet date requiring disclosure. Other than for th Transport of NSW Related Entity Transport of NSW NSW Treasury TCorp Related Entity *Transaction value excludes GST NSW Treasury TCorp Sydney Metro he following arm’s length transactions have been identified sset valuations - adjusting aluations as at 30 June 2020 5

. outstandingdebtor.of a

change

due the to continued Events after the reporting Events after thereporting period

30 30 30 June30 2020, subsequent subsequent

ese

June 2020, in order to finalise the collection ofthe reduced amount.

item END OF AUDITED AUDITED OF END COVID s

Government guarantee fee C payable Accrued interest Interest Transaction Government guarantee fees Interest expenses leases leases Expense for channel fee Transaction Rental income for various Rental income for various notedabove, m event on the collection from a debtor hannel payable fee

- the Corporation consider 19 th eCorporation has negotiatedand

pandemic

Thisagreement was reached

-

remained unchanged bearing liabilities .

period FINANCIAL STATEMENTS FINANCIAL . anagement

Given thecontinuation ofCOVID

ed

is not aware of any other . that there there that

as individually

142,966 in advanceof

agreed was 1,564 4,112 1,931 7,216 1,421 1,564 1,361

$000 2020 $000 2020 Outstanding balance 923

Transaction Value * valuers

continuing

significant a

- reduc 19, both of the the of both 19, confirmed that a proposed a proposed significant tion in in tion 144,177 valuation

1,120 2,924 1,135 1,305 7,121 1,720 1,120 1,360 for for $000 2019 $000 2019 an an 73 72

Newcastle Port Corporation (TradingStatement as Port of Authorityland holdings of New South Wales) As at 30 June 2020 Statement of land holdings As at 30 June 2020

Land is disclosed in the financial statements under the asset grouping “Land and buildings” within “Property, plant and equipment”. In the following summary, land has been separated from buildings and other non-current assets to show land value in terms of the statement of financial position valuations.

Corporation 2020 $000 Land and buildings Land 204,391 Buildings 91,045 Total land and buildings 295,436

Other Roadways and bridges 11,967 Wharves, jetties and breakwaters 42,658 Plant 76,187 Construction in progress 9,207 Total other 140,019

Total property, plant and equipment 435,455

Financial statements • 169 170 Port Authority of New South Wales Annual Report 2019/20 (a) Maritime Administration Act andare to: are set outinsection10ofthePorts and Port Authority’s principalfunctions (e) (d) to promote andfacilitate a (c) (b) to promote andfacilitate trade (a) and are: and Maritime Administration Act 1995 are set outinsection9of the Ports Port Authority’s principalobjectives (Port Authority) in July 2014. ‘Port Authority ofNew SouthWales’ (NSW) andadopted thetrading name and MaritimeAdministration Act 1995 constituted undersection6ofthePorts Newcastle Port Corporation was and objectives 21.1 Charter, aims 21 facilities andservices in its ports establish, manageand operate port port‑related supply chain. efficiency initsportsandthe to improve productivity and in portoperations, and competitive commercial environment functions are carriedoutproperly to ensure that itsportsafety through itsportfacilities and, to this end: to beasuccessful business iii. ii. i. to do so, and those interests whenable endeavouring to accommodate in whichitoperates andby to theinterests ofthecommunity responsibility by having regard exhibit asenseofsocial in the port corporation of the State’s investment maximise thenetworth as any comparable business operate at least asefficiently Statutory disclosures (c) (b) exercise theportsafety functions which determines the frequency introduction of arisk-profile requirement quality assurance system, including the 2023) andprovides for aport-specific and remains in force until31December (which commenced 19December 2018 The licence isfor afive-year term • • • • • • • • • safety functionswhichinclude: requires Port Authority to carry outport Minister for Transport andRoads, and responsible for Ports, currently the The licence isissued by theNSW Minister to Port Authority of New South Wales. the NSW Government granted aPSOL and MaritimeAdministration Act, Under section12(2)ofthePorts Operating Licence of service –Port Safety 21.2 Guarantee and Eden. Harbour, Newcastle, Port Kembla for theportsofBotany Bay, Sydney maintaining atowage licence system vessel arrival system investigations ofoilandchemicalspills emergency response port communications pilotage andexemptions from pilotage navigation aidsoperation concerning dangerous goods administering regulations and berth depths monitoring ofchannel of the port-related supply chain. improvements intheefficiency facilitate andco-ordinate with its operating licence, and for whichitislicensed inaccordance of inspections and monitoring of port • Maritime Transport and Offshore safety functions. The licence also requires Facilities Security Act 2003 (Cth) Port Authority to maintain authorisation and associated regulation as a VTS Authority in the ports of Sydney • Ports Assets (Authorised Transactions) Harbour and Port Botany and achieve Act 2012 (NSW) authorisation as a VTS Authority in the ports of Newcastle and Port Kembla • Protection of the Environment during the term of the licence. Operations Act 1997 (NSW)

Under its PSOL, the various Port • Work Health and Safety Act 2011 (NSW) Authority’s port operations exercise and associated regulations. and manage port safety functions within the port limits. Within the Sydney port Port Authority is also subject to a wide operation, this encompasses the port variety of other legislation that provides areas of Sydney Harbour and Botany rights to, and imposes obligations Bay. The Newcastle port operation on, state owned corporations. These exercises the port safety functions within rights and obligations affect Port Newcastle Harbour and Yamba, whilst Authority’s governance processes and the Port Kembla port operation exercises its commercial and operational activities. port safety functions within Port Kembla and Port of Eden. All performance standards of the PSOL were complied 21.4 Changes in Acts with in 2019/20. and subordinate legislation 21.3 Relevant legislation Amendments to the Protection of the Port Authority of NSW is a statutory Sea (Prevention of Pollution from Ships) state owned corporation established Act 1983 (Cth) came into force on 1 under the State Owned Corporations January 2020 to implement Australia’s Act 1989 (NSW) and Ports and Maritime international obligations in relation to Administration Act 1995 (NSW), and sulphur fuel emissions from ships under operates in accordance with those Acts Annex VI of the International Convention and associated regulation. for the Prevention of Pollution from Ships, 1973, as modified by the Protocol Other significant legislation and regulation of 1978 relating thereto (MARPOL). These affecting Port Authority of NSW includes: changes implemented a global cap of • Biosecurity Act 2015 (Cth) 0.5 per cent mass/mass of the sulphur content of fuel oil used on board ships. • Environmental Planning and Assessment Act 1979 (NSW) The Australian and NSW governments (through Part 5 of the Act and the introduced new laws in response to the State Environmental Planning Policy global COVID-19 pandemic to protect (Major Development) 2005) public health and prevent the spread of infectious disease. On 18 March • Government Sector Finance Act 2020, the Governor General of the 2018 (NSW) Commonwealth of Australia declared • Marine Safety Act 1998 (NSW) that a human biosecurity emergency and associated regulations existed, giving powers to the Australian • Marine Pollution Act 2012 (NSW) Government Minister for Health to issue and associated regulations directions to combat the outbreak

Statutory disclosures • 171 172 Port Authority of New South Wales Annual Report 2019/20 possible for themto doso. to work from homeunless itwas not in relation to requirements for employees movement ofpeople, includingdirections imposing restrictions ongatherings and and Movement) Order 2020 (NSW) – (COVID-19 Restrictions onGathering public healthorders Health –Public The NSW Government madefour on 24 June 2020. of NSW. Asecond order commenced that hadcome from aportoutside on persons arrivinginNSW onvessels imposed quarantine requirements into force on28March 2020 and Quarantine) Order 2020 (NSW) came The Health(COVID-19 Public Maritime and Australian ports. ships into Australian territory restrictions ontheentryof cruise commenced on18March and imposed Ships) Determination 2020 (Cth) (Emergency Requirements for Cruise Coronavirus withPandemic Potential) Biosecurity Emergency) (Human of COVID-19. The Biosecurity(Human for details.). objectives for 2019/20. (SeeSection11.3 by Port Authority ofitsoperational COVID-19 has impacted theachievement of operational objectives affecting achievement or other factors 21.5 Economic period provisions for the reporting 21.7 Exemptions with abudgetof$36.4million for theyear were $36.8millioncompared depreciation, andamortisation (EBITDA) Intent. Earningsbefore interest, taxes, its 2019/20 Statement ofCorporate compared to thekey targets setin for thereporting periodwas favourable Port Authority’s financialperformance of Corporate Intent relative to theStatement 21.6 Performance Audit (General) Regulation 1995. (PF&AR) Finance andthePublic and FinancePublic andAudit Regulation 2015 areas oftheARSBA,ARSBR, the Corporation isexempt from some As astatutory bodyincompetition, to the statutory body. granted by theTreasurer whichapply reporting provisions whichhave been modifications and variations from statements of allexemptions, omissions, body to includeinitsannualreport 2015 (ARSBR)require astatutory (Statutory Bodies) Regulation (ARSBA) andtheAnnualReports Finance andAudit Act 1983(NSW) Section 41B(1)(c)(va) ofthePublic The following matters are exempt but require reporting in a summarised form:

Requirements Legislative source of requirements Clause 7 section 7(1)(a)(iv) ARSBA and Schedule 1 Summary Review of Operations ARSBR Management and Activities Schedule 1 ARSBR Consultants Schedule 1 ARSBR Consumer Response Schedule 1 ARSBR Disclosure of Controlled Entities Schedule 1 ARSBR Report on Risk Management and Insurance Activities Schedule 1 ARSBR

The following matters are exempt:

Exemptions Legislative source of requirements Budgets – outline and details Section 7(1)(a)(iii) ARSBA and Clause 7 ARSBR Research and Development Schedule 1 ARSBR Human Resources Schedule 1 ARSBR Land Disposal Schedule 1 ARSBR Payment of Accounts Schedule 1 ARSBR and Clause 13 PF&AR Time for Payment of Accounts Schedule 1 ARSBR and Clause 13 PF&AR Investment Performance Clause 12 ARSBR Liability Management Performance Clause 13 ARSBR These exemptions, omissions, modifications and variations have been approved by NSW Treasury and are based on, amongst other things, commercial sensitivities. There have otherwise been no exemptions, omissions, modifications or variations for the reporting period.

21.8 Response to significant issues raised by the Auditor General There were no significant issues raised by the Auditor General in the 2018/19 financial year audit. Port Authority of New South Wales’ response to any significant issues raised by the Auditor General in the 2019/20 financial year audit will be included in the 2020/21 Annual Report.

Statutory disclosures • 173 174 Port Authority of New South Wales Annual Report 2019/20 be made inrelation to eachsuchdecision.This alsoappliesto Table B. *More thanonedecisioncanbemadeinrespect ofaparticular access application. Ifso, arecording must Table A: Numberofapplications by typeofapplicantandoutcome* Information Access) (Public AmendmentRegulation 2010. The following tablesinclude statistics asrequired by Schedule2oftheGovernment on five applications. from 2018–19 (11applications). Port Authority was alsoconsulted by otheragencies Therefore, Port Authority decided19applications during theyear, a72 percent increase as at 30 June2020. No applications were transferred to otheragenciesandoneremains inprogress During thereporting period,Port Authority received 20formal access applications. is required to bereported undertheAct for theperiod1July2019 to 30June2020. Information Access) (Public Act 2009(NSW) (theAct). The following information Port Authority isrequired to report annuallyonitsobligations undertheGovernment 21.9 Government Information Access) (Public Act 2009 public (other) Members ofthe representative) by legal (application of the public Members groups or community organisations Not-for-profit business Private sector of Parliament Members Media granted Access Access in full 0 0 0 3 1 1 granted Access Access in part 0 2 2 1 1 1 refused Access Access in full 0 0 2 1 1 1 Information not held 0 0 0 0 0 1 Information available already 0 0 0 0 0 1 application Refuse to deal with deal with 0 0 0 0 0 0 confirm/deny information Refuse to whether whether is held 0 0 0 0 0 0 Application Application withdrawn 0 0 0 0 0 0 Table B: Number of applications by type of application and outcome

Refuse to confirm/ Access Access Access Information Refuse deny whether granted granted refused Information already to deal with information Application in full in part in full not held available application is held withdrawn Personal information 0 0 0 0 0 0 0 0 applications* Access applications (other than 4 6 5 0 1 0 0 0 personal information applications) Access applications that are partly personal 1 1 0 1 0 0 0 0 information applications and partly other *A ‘personal information application’ is an access application for personal information (as defined in clause 4 of Schedule 4 to the Act) about the applicant (the applicant being an individual).

Table C: Invalid applications

Reason for invalidity No. of applications Application does not comply with formal requirements (section 41 of the Act) 1 Application is for excluded information of the agency (section 43 of the Act) 0 Application contravenes restraint order (section 110 of the Act) 0 Total number of invalid applications received 1 Invalid applications that subsequently became valid applications 1

Table D: Conclusive presumption of overriding public interest against disclosure: matters listed in Schedule 1 of the Act

Reason for invalidity Number of times consideration used* Overriding secrecy laws 0 Cabinet information 5 Executive Council information 0 Contempt 0 Legal professional privilege 0 Excluded information 0 Documents affecting law enforcement and public safety 0 Transport safety 0 Adoption 0 Care and protection of children 0 Ministerial code of conduct 0 Aboriginal and environmental heritage 0

*More than one public interest consideration may apply in relation to a particular access application and, if so, each such consideration is to be recorded (but only once per application). This also applies in relation to Table E.

Statutory disclosures • 175 176 Port Authority of New South Wales Annual Report 2019/20 original decisionhasbeenmade. to theoriginaldecision-maker. The data inthiscaseindicates that arecommendation to vary orupholdthe *The Information Commissioner doesnothave theauthorityto vary decisions,butcanmake recommendation (by typeofreview andoutcome) Table G:Numberofapplications reviewed underPart 5oftheAct Table F:Timeliness matters listed intableto section14oftheAct Table E:Otherpublicinterest considerations against disclosure: of Part 4oftheAct (by typeoftransfer) Table I:Applications transferred to otheragenciesunderDivision2 (by typeof applicant) Table H:Applications for review underPart 5ofthe Act Total Tribunal Review by Administrative Decisions under section93 oftheAct Internal review following recommendation Review by Information Commissioner* Total Not decidedwithintime(deemed refusal) Decided after 35 days (by agreement withapplicant) Decided withinthestatutory timeframe (20days plusany extensions) Exempt documentsunderinterstate Freedom ofInformation legislation Secrecy provisions Environment, culture, economy andgeneral matters Business interests ofagenciesandotherpersons Individual rights,judicialprocesses andnatural justice Law enforcement andsecurity Responsible andeffective government Applicant-initiated transfers Agency-initiated transfers application relates (see section54oftheAct) Applications by personsto whominformation thesubjectof access Applications by access applicants Internal review Decision varied 0 0 0 0 0 Decision upheld 0 0 0 0 0 Number ofapplications transferred Number ofapplications for review Number of occasions when Number ofoccasions when application notsuccessful Number ofapplications 0 0 0 0 Total 19 17 0 0 0 0 0 0 0 0 4 5 5 2 2 1 21.10 Corporate The Chief Executive Officer is responsible for the day-to-day management governance of the operation of Port Authority in accordance with the general policies Good corporate governance creates and specific directions of the Board. and sustains an ethical and legal It is the responsibility of the Board environment which recognises to oversee the activities of management the interests of all stakeholders in carrying out these delegated duties. in a corporation. The Board of Port Authority is responsible for overall The Board’s role and responsibilities corporate governance of the Corporation to each key stakeholder are set out in and has adopted corporate governance Port Authority’s Board Charter, which practices and procedures that are is available in the Corporate Governance appropriate to manage Port Authority section of the Port Authority website. in the best interests of the Voting Shareholders and other stakeholders. Port Authority complies with each 21.12 Board committees of the recommendations in the NSW To assist the Board in discharging its Treasury Guidelines for Governing functions – and to allow a more detailed Boards of Government Businesses. analysis of the specialised areas of This report outlines Port Authority’s finance, risk, audit, remuneration, human governance practices during 2019/20. resources and governance – the following committees were operational during 2019/20: 21.11 Role of the Board • Audit and Risk Committee The Board is responsible for overseeing • People and Culture Committee the business and commercial affairs of Port Authority including: • Nominations Committee. • approving business Each committee has a clear charter and financial strategy setting out its roles, responsibilities and delegated authority from the • approving the business Board. The Board Charter and all Board and financial objectives Committee Charters are reviewed • monitoring business on a regular basis and updated to remain and financial performance relevant to the Corporation. • reviewing performance and remuneration of executive management • reviewing the risk management and internal control framework • recommending to the Portfolio Minister the appointment and removal of the Chief Executive Officer • reviewing any reporting to voting shareholders.

Statutory disclosures • 177 178 Port Authority of New South Wales Annual Report 2019/20 of the Port Authority website. in theCorporate Governance section Risk Committee Charter isavailable 2019/20. Acopy oftheAudit and The Committee met five timesduring and external auditors. senior managementandboththeinternal communication between theBoard, The Committee provides aforum for • • • • • • • • • for oversight andreview of: The Committee isresponsible the responsibilities ofitsCharter. and Risk Committee appropriate to meet mix ofskillsandexperience ontheAudit in accounting. The Board considers the have qualifications and experience Matthew IrwinandRobert Dunn and has knowledge ofthebusiness. of theCommittee isfinanciallyliterate Board on1July2014. Eachmember established by thePort Authority The Audit andRiskCommittee was executive Directors. who were eachindependent,non- were Zorana BullandRobert Dunn, of the Committee asat 30June2020 the Chair oftheBoard. Othermembers non-executive Director, whoisnot Matthew Irwin.Matthew isanindependent Committee asat 30June2020 was The ChairoftheAudit andRisk Audit andRiskCommittee letters andmanagement’s responses. external auditor’s audits,management appointing theinternal auditor internal auditfunction,including integrity andperformance ofthe and regulations compliance withapplicablelaws internal controls accounting policies business ethics,policiesandpractices debt structure anddebtinstruments risk management financial control and reporting • • • • • • responsibilities inregards to in fulfillingits corporate governance is responsible for assisting the Board Board on1July2014. The Committee was established by thePort Authority The People andCulture Committee Board duringthat time. Committee were undertaken by thefull six-month periodandthedutiesof of membershipto operate duringthat Committee hasnothadtherequired level in theperiodto 30June2020. The new Director appointmentswere made Directors on31December 2019, no Hall’s andGerard Sutton’s terms as Following theexpiry ofPenny Bingham- executive Director. Robert Dunn,alsoanindependent,non- Committee asat 30June2020 was Board. The othermemberofthe Director, whoisnottheChairof Zorana isanindependentnon-executive Zorana Bull. Committee) asat 30June2020 was Remuneration andHumanResources Committee (formerly known asthe The ChairofthePeople andCulture Committee People andCulture relations issues. workplace relations andindustrial diversity and culture programs engagement talent development andemployee including succession planning, human resources (HR)management Executive Management of theChiefExecutive Officer and employment terms andconditions Officer and Executive Management performance oftheChiefExecutive Management Executive Officer and Executive remuneration policiesfor theChief overall remuneration strategy and During 2019/20, the People and Culture 21.13 Code of Conduct Committee reviewed executive salaries and performance arrangements, Port Authority’s Code of Conduct outlines including those of the Chief Executive general business ethics and acceptable Officer. The Committee considered standards of professional behaviour and recommended the Corporate Goals expected of all directors, employees for 2019/20, and reviewed and evaluated and contractors. the performance of the Chief Executive The Code covers personal and professional Officer and the executive management behaviour, fraud and corruption team against agreed performance goals responsibilities including policies for the 2018/19 year. The Committee on accepting of gifts and benefits, ethics oversaw HR management including HR and conflicts of interest requirements. metrics, diversity matters and initiatives and enterprise bargaining agreement Business unit managers provide a quarterly updates. It also reviewed the outcomes response that they have undertaken from a staff engagement survey and a review of the fraud and corruption plan reviewed the Committee Charter. and a review of the controls in place, and that the controls remain current The Committee met twice during 2019/20. and relevant. The business unit managers A copy of the People and Culture also provide written confirmation that they Committee Charter is available in the are not aware of any matters within their in the Corporate Governance section team that may be considered fraudulent of the Port Authority website. or corrupt. Nominations Committee Additionally, employees are encouraged to report any suspected breaches of the The Nominations Committee comprised Code, and those who do are protected as all independent non-executive Directors. outlined in the Internal Reporting Policy. It was chaired by Robert Dunn. The Code of Conduct is available The Nominations Committee was to all employees on Port Authority’s established by the Port Authority Board intranet. It works alongside other more on 1 July 2014. detailed polices including the Fraud The Committee meets on an as-required and Corruption Policy, Disciplinary Policy basis and is responsible for assisting and Internal Reporting Policy. the Port Authority Board in fulfilling The current Code of Conduct was its corporate governance responsibilities implemented in 2017/18, after review with regard to Board composition. by each Consultative Committee and This includes assessing the necessary approval by the Board and Executive. and desirable skills and experience Conflicts of Interest and Secondary of Directors; ensuring Directors have Employment procedures were introduced the appropriate mix of competencies in 2018/19 to support and clarify and identifying skills and experience to fill requirements of the Code of Conduct. those gaps; and overseeing the induction Any significant breaches of the Code and continuing education of Directors. of Conduct must be reported immediately The Committee met once during to the Chair. 2019/20. A copy of the Nominations A copy of the Code of Conduct is Committee Charter is available in available in the Corporate Governance the Corporate Governance section section of the Port Authority website. of the Port Authority website.

Statutory disclosures • 179 180 Port Authority of New South Wales Annual Report 2019/20 • • • • • • throughout theorganisation. Itaimsto: Authority’s approach to managingrisk Management Framework outlinesPort Wales (‘Port Authority’) Enterprise Risk The Port Authority ofNew South Port Authority. are documented consistently across consequence, andcontrolled riskrating the riskidentification, controls, likelihood, activities. Allriskassessments, including the organisation, across functions and and assessed at different levels within 31000:2009). Risksare considered of RiskManagement(AS/NZS/ISO the Australian/New Zealand Standard management approach consistent with enterprise-wide andintegrated risk- Port Authority hasadopted an 21.14 Risk management a corrective measure. of decision-makingrather than and seen asapositive attribute is embedded across alloperations culture where riskmanagement foster andencourage arisk-aware of existing controls over risks provide anevaluation oftheadequacy the management ofkey risks and strategies to improve assist inidentifyingopportunities allowing innovation anddevelopment approach to riskmanagementwhile ensure aconsistent andeffective regulatory requirements ensure compliance with achievement oforganisational goals support effective decision-makingand • • • • the following: Management Framework includes Port Authority’s Enterprise Risk Port Authority Board. Committee andapproved by the is referred to theAudit andRisk That review, andrenewal of insurance, assets andliabilitiesare included. coverage is heldandthat allrelevant and confirms that appropriate insurance Annually, Port Authority reviews incidents andclaims. Committee andBoard onsignificant and briefing the Audit andRisk (to ensure coverage ismaintained) insurers asnew projects are initiated Insurance activitiesincludenotifying Jardine Lloyd Thompson. Officers’ Liability Coverage through insurance, andadditionalDirectors’ and in theform ofLandlord Port Authorities transport andlogistics (includingMarine), TTClub, whichspecialisesininternational Authority alsoholdsadditionalcover with Compensation andMiscellaneous. Port and Assets, Liability, Public Worker’s general insurance: Motor Vehicle, Property insurance provider) for Port Authority’s with iCare (theNSW Government Port Authority holdsinsurance policies 21.15 Insurance activities Risk Registers. Strategic, Operational andProject Risk ManagementProcedure Risk ManagementPolicy (including Tolerances) Risk Appetite Statement 21.16 Board composition 21.18 Board independence Under the State Owned Corporations All Directors are expected to exercise Act 1989 (NSW), the Port Authority independent judgment when making Board is required to have a minimum Board decisions. It is the approach of three and a maximum of seven and attitude of each non-executive Directors. The Voting Shareholders Director which is critical to determining appoint the Chair, who for the year independence and this must be to 30 June 2020 was Robert Dunn. considered in relation to each Director, Robert was an independent Director while taking into account all other and his role was clearly separated from relevant factors. This will include an the role of the Chief Executive Officer, assessment against the independence Philip Holliday. Robert was appointed recommendations in the NSW Treasury as Chair of the Port Authority Board Guidelines for Governing Boards effective 1 August 2018. He was previously of Government Businesses. These cover a Director of Sydney Ports Corporation, whether the Director: prior to its amalgamation with Newcastle • is employed, or has been employed in Port Corporation on 1 July 2014 to form an executive capacity by the business, Port Authority. The Chair is responsible and there has not been a period of at for leading the Board and facilitating least three years between ceasing that its effective functioning. employment and serving on the Board • has, within the last three years, been 21.17 Chief Executive a partner, director or senior employee of a provider of material professional Officer services to the business Philip Holliday was appointed as Chief • has, within the last three years, been Executive Officer of Port Authority in a material business relationship with effective 18 December 2019. He was the entity, or an officer of or otherwise previously the Chief Operating Officer associated with, someone in such and Harbour Master, Sydney. a relationship As set out in the State Owned • has a material contractual relationship Corporations Act 1989 (NSW), the Chief with the business other than Executive Officer was appointed by Her as a Director of the business Excellency the Honourable Margaret • has close family ties with any person Beazley AC QC Governor of New who falls within any of these categories South Wales on the recommendation • has been a Director of the entity for of the Portfolio Minister, following such a period (10 years or greater) a recommendation from the Board. that his or her independence may have The Chief Executive Officer is responsible been compromised. for the day-to-day management Note: ‘Material’ means greater than of the operation of Port Authority five per cent of the Corporation’s in accordance with the general policies gross revenues. and specific directions of the Board. Philip Holliday was separately appointed as a Director on 27 November 2019.

Statutory disclosures • 181 182 Port Authority of New South Wales Annual Report 2019/20 of the Board. available to allothermembers a copy ofthisadvice isto be made Authority’s expense. Where appropriate, out theirresponsibilities and isat Port be soughtto assist Directors in carrying a suitablyqualifiedadvisor. Advice can independent professional advice from the Chair, hastherightto seek individual Director, subjectto informing employees. Further, theBoard andeach to allPort Authority’s information and Each Director hastherightofaccess professional advice and independent to information 21.19 Access Directors are considered independent. not considered independent.Allother and the Chief Executive Officer, is Philip Holliday, asbothaDirector have not changed. the independent status ofaDirector ensure circumstances that may affect is reviewed onaregular basisto The independence ofeachDirector a material personal interest, unless on amatter inwhichthat Director has cannot take part indiscussions orvote Corporations Act 1989 (NSW). ADirector Schedule 10oftheState Owned the Board complies withClause2, In relation to specificBoard decisions, as circumstances change. update thisregister on anongoingbasis positions. Directors are required to of Port Authority, includingotherboard conflict withtheirdutiesasaDirector of Directors that may potentially register whichregisters any interests Port Authority maintainsaconflicts 19.20 Conflict ofinterest the year. Port Authority andany Director during no related-party transactions between not qualifytheDirector. There have been the Board resolves that theinterest does has exceeded thislimit. None ofPort Authority’s Directors of more thanthree government boards. Directors shouldnotholddirectorships (November 2017) recommends that Boards ofGovernment Businesses NSW Treasury memberships 21.21 Other board is listed insections 21.23and21.24. and committee meetings duringtheyear The attendance by Directors at Board of Port Authority. FGIA) isthecurrent Company Secretary of the Board. Regina Abood(B.Com. is appointed andremoved by resolution take minutes. The Company Secretary at Board andCommittee meetingsto advance ofeachmeetingandattendance for Board andCommittee meetingsin ensuring that theBoard receives papers the Board ofDirectors. This includes corporate governance supportto for providing administrative and The Company Secretary isresponsible Directors present. management andnon-independent be discussed withoutexecutive to discuss any matters that should on theBoard meetona regular basis The independent non-executive Directors 2019/20, theBoard metninetimes. as circumstances require. During a year andmay meet more regularly Authority scheduleseightmeetings The Board ofDirectors ofPort and their conduct 21.22 Board meetings Guidelines for Governing

.21.23 Attendance at board meetings 2019/20

Board meetings Term of appointment A B R. Dunn 9 9 1 July 2018 – 30 June 2021 P. Holliday 5 5 27 November 2019 – 26 November 2024 P. Bingham-Hall 4 4 1 January 2017 – 31 December 2019 Z. Bull 9 9 13 February 2019 – 12 February 2022 2 November 2016 – 1 November 2019 G. Gilfillan 2 2 (ceased as Director on the expiry of contract as CEO on 30 September 2019) M. Irwin 9 9 13 February 2019 – 12 February 2022 G. Sutton 4 4 1 January 2017 – 31 December 2019

A: number of meetings eligible to attend during year. B: number of meetings attended.

21.24 Attendance at committee meetings 2019/20

Audit and Risk Committee Remuneration and Human Nominations Committee Resources Committee A B A B A B R. Dunn 5 5 2 2 1 1 P. Holliday – – – – – – P. Bingham-Hall 3 3 2 2 1 1 Z. Bull 5 5 2 2 1 1 G. Gilfillan – – – – – – M. Irwin 5 5 – – 1 1 G. Sutton – – 2 2 1 1

A: number of meetings eligible to attend during year. B: number of meetings attended.

Directors who are not members of committees are invited to attend committee meetings and are entitled to receive papers of committee meetings on request. Attendance above only includes attendance of appointed committee members and does not reflect attendance at meetings by Directors who are not committee members.

Statutory disclosures • 183 184 Port Authority of New South Wales Annual Report 2019/20 • • • • • • • of Port Authority’s: key executives, to gainanunderstanding the Chair, Chief Executive Officer and which includesaseriesofmeetingswith with access to aninduction program In addition,new Directors are provided in the form approved by NSW Treasury. with a Deed ofAccess andIndemnity New Directors are alsoprovided • • • • • • • Information provided includes: and therequirements oftherole. understanding Port Authority’s business pack ofinformation to assist themin new Directors withaninduction In addition,Port Authority provides term ofappointmentandremuneration. Voting Shareholders specifyingtheir with aletter ofappointmentfrom the When appointed, Directors are provided and education appointment remuneration, 21.25 Director risk managementframework. strategy remuneration executives key performance current financialandbusiness corporate governance practices operating andindustrial environment strategy, objectives andbusiness Statement ofCorporate Intent. Board andCommittee charters Board profiles and contact details most recent AnnualReport the copies ofrelevant legislation previous Board minutes Code ofConduct by the Voting Shareholders. of Port Authority isdetermined The remuneration for Directors • • an understanding of Port Authority’s: Officer and key executives, togain with the Chair, ChiefExecutive which includesaseriesofmeetings with access to aninductionprogram In addition,new Directors are provided 21.26 Board performance their probationary periods. Workplace Behaviour training during required to complete Professional occurs intheworkplace. Allstaff are potential consequences ifsuchbehaviour defines unacceptable behaviours andthe Bullying andHarassment Policy, which The policy iscomplemented by the • • • Authority: Policy outlinestheprinciplesthat Port Port Authority’s Diversity andInclusion and inclusion 21.27 Equity, diversity was completed inFebruary 2020. by anexternal party. Aninternal review with eachthird review beingconducted whereby reviews are conducted annually, agreed by theBoard inJuly2015, basis. A preferred methodologywas and that of eachDirector onaregular to evaluate itsown performance The Board believes it is important AICD Cyber for Directors (MIrwin). visits to Port Authority sites its diversity progress. commits to measuringandmonitoring diversity inmind recruits, develops and promotes with values diversity andinclusion To demonstrate its commitment to As a state owned corporation, Port cultural diversity, Port Authority operates Authority measures itself against NSW a recruitment, selection and promotion Government benchmarks as outlined by strategy that is based on merit. Port the NSW Public Service Commission. Authority also ensures that diversity is Information is collected annually through represented on all selection panels. the Workforce Profile that monitors data centred on age, gender, ethnic and This year, 36 employees were recruited cultural backgrounds, and employment externally from a broad range of information including hours worked and backgrounds, consistent with the mobility. organisation’s consciousness of being an inclusive workplace. This included the Data collection is voluntary and successful employment of two female anonymous, with employees having marine pilots in the Sydney Operations the right to request that their data be division. A further 14 employees were withheld from the collection. Where promoted internally. there is insufficient information supplied or the numbers are too low, a ‘N/A’ (not available) is displayed

Equal Employment Opportunity group

Percentage of staff at 30 June 2020

Diversity Benchmark 2019 2020

Women 50% 23.3% 23.5%

Aboriginal and Torres Strait Islander peoples 3.3% 0.6% 1.4%

People whose first language as a child 19% 6% 6.4% was not English

People with a disability N/A 0.3% 0.3%

People with a disability that required N/A 0.0% 0.0% work‑related adjustments

Distribution Index at 30 June 2020

Diversity Benchmark 2019 2020

Women 100 79 84

Aboriginal and Torres Strait Islander people 100 1 5

People whose first language as a child 100 22 23 was not English

People with a disability N/A 1 1

People with a disability that required N/A N/A N/A work‑related adjustments

Tables of diversity measures (above) represent total staff of 358 at 30 June 2020 (excluding casual staff). A distribution index of 100 indicates that the centre of distribution of the diversity group across salary levels is equivalent to that of other staff. Values less than 100 indicate the diversity group is more concentrated at lower salary levels than for other staff. The more pronounced this tendency is, the lower the index will be. An index of greater than 100 indicates the diversity group is less concentrated at the lower salary levels.

Statutory disclosures • 185 186 Port Authority of New South Wales Annual Report 2019/20 Port Authority Work HealthandSafety statistics for details.) with employees. (SeeSection11 formed to make decisionsinconsultation Team andWHSsub-committees were offices. A COVID-19 CrisisManagement collaboratively across theportsand the COVID-19 pandemicworking The business safely navigated through and Safety 21.28 Work Health per million hoursworked. TRIFR isthecalculation ofthenumberLost Time Injuriesandthe numberofMedicalTreatment Injuries LTIFR isthecalculation ofthenumberLost Time Injuriespermillionhoursworked. There were nofatalities inthefour Lost Time Injuriesrecorded in 2018/19. practitioner resulted inarestriction that prevented theabilityof thepersonto perform fullduties. Medical Treatment Injury–anincident/injurywhere theassessment andtreatment from themedical Injury – anincident/injurythat resulted inpersonlosingoneormore shiftasaresult oftheinjurysustained. Lost Time Injury–anincident / injurythat resulted inpersonlosingoneormore shiftasaresult Lost Time Notes: Percentage ofplannedWHSmeetingsheld Workplace Inspections Total Recordable InjuryFrequency Rate (TRIFR) Lost Time InjuryFrequency Rate (LTIFR) Number ofLost Time Injuries Total numberofincidentsandhazards reported Number ofMedicalTreatment Injuries following table. for 2019/20 issummarisedinthe The Port Authority WHSperformance during theyear. Work HealthandSafety Act 2011 (NSW) Authority relating to any breach ofthe There were noprosecutions against Port across Port Authority. implemented andlessons learntshared thoroughly investigated, withactions and onelandside. These were all in 2019/20. Three were marinerelated There were four significantNearMisses 2018/19 100% 6.25 207 12.5 174 4 2 2019/20 100% 10.61 6.06 149 126 4 3 21.29 Overseas travel by Port Authority employees

Name Date Destination Purpose

Jeanine Drummond, 6–14 September London, UK To attend the annual Council meeting Harbour Master, 2019 of the International Association of Ports Newcastle and Harbours (IAPH) in association with her appointment as Chair of the IAPH Women’s Forum. Whilst in London, Ms Drummond also attended the Maritime Innovation Seminar, Women in Shipping Summit, International Chamber of Shipping – Shaping the Future of Shipping and London International Shipping Week 2019 Conference.

21.30 Funds granted 21.32 Publications to non-government During the reporting year, Port Authority community organisations published the following publications: There were no funds granted to non- • Cruise Schedules government community organisations • Dangerous Goods in 2019/20. Management Guidelines • Harbour Master’s Directions 21.31 Community • Notices to Mariners engagement/consumer • Port Authority of New South Wales Annual Report 2018/19 response • Schedules of Port Charges Service NSW manages Port Authority’s effective 1 July 2019 community complaints and enquiries on a • Statement of Corporate Intent 2019/20 24/7 basis. This ensures that community • “Look out ships about” complaints are managed any time of the day or night. Port Authority’s website All complaints and enquiries are portauthoritynsw.com.au registered on one consolidated database. provides information to stakeholders All complaints are responded to within and to the community. three business days. A newsletter, Port Matters, featuring The 24-hour contact details are: news and stories, is emailed quarterly to subscribers. Subscription to P: 02 9296 4962 the newsletter can be made at E: [email protected] portauthoritynsw.com.au/newsletter.

Statutory disclosures • 187 188 Port Authority of New South Wales Annual Report 2019/20 of SES level 1 Executives withremuneration equalto orexceeding theequivalent As at 30June2020, thegenderratio of maleto female is5:3. greater than$562,650andless thantheupperlimitof$1,000,000. The ChiefExecutive Officer received remuneration in>SEBand4max,whichis five males and three females. the equivalent NSW Service Public Commission SeniorExecutive Service (SE)band1: At 30June2020, there were eightexecutives withremuneration equalto or exceeding 21.35 Executive positions at was $27,456. The report isavailable New SouthWales AnnualReport 2018/19 design services) thePort Authority of The total cost ofproducing (editing and 21.33 Annual Report cost male to female Gender ratio, Max >SE Band4 Secretary SE BAND4 Deputy Secretary SE BAND3 Executive Director SE BAND2 Director SE BAND1 SES level www.portauthoritynsw.com.au. 30 June 30 June 2019 7:1 0 5 1 1 1 30 June 30 June 2020 5:3 0 0 4 3 1 to 30 June2019. $5 million duringtheperiod1July2018 any landassets ofvalue greater than Port Authority didnotdisposeof 21.34 Land disposal Male 0 0 3 5 1 1 Gender 2020 Female 0 0 0 3 2 1 Average total remuneration package in band $399,957 $612,499 $317,310 $0 0 21.36 Public interest disclosures Under section 6D of the Public Interest Disclosures Act 1994(NSW), public authorities are required to have a policy and procedures for receiving, assessing and dealing with public interest disclosures (PIDs). Pursuant to Clause 4 of the Public Interest Disclosures Regulation 2011 (NSW), the information below must be included in a public authority’s Annual Report.

1 July 2019 – 30 June 2020 Number of public officials who made PIDs 0 Number of PIDs received 0 Of PIDs received, number primarily about: Corrupt conduct 0 Maladministration 0 Serious and substantial waste 0 Government information contravention 0 Local government pecuniary interest contravention 0 Number of PIDs finalised 0

Port Authority has adopted an internal reporting policy that is consistent with the NSW Ombudsman’s model policy and applies across all Port Authority sites.

Statutory disclosures • 189 190 Port Authority of New South Wales Annual Report 2019/20 A marine pilot vessel passing Nobbys Headland, Newcastle Harbour Statutory disclosures • 191 Port Authority of NSW PO Box 25 Millers Point, NSW 2000 E [email protected] W portauthoritynsw.com.au

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