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2018–19 Annual Report Port Authority of New South Wales

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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 17 Sustainability and environment 86 21.9 Government Information 17.1 Introduction 86 (Public Access) Act 2009 174 Annual Report 2019/20 Annual Report 17.2 Management of port impacts 87 21.10 Corporate governance 177 17.3 Penrhyn Estuary 89 21.11 Role of the Board 177 17.4 Vehicle and marine fleet 89 21.12 Board committees 177 17.5 Sustainability in construction 21.13 Code of conduct 179 projects 90 21.14 Risk management 180 17.6 Indigenous sponsorship 90 21.15 Insurance activities 180 17.7 Environmental penalties 90 21.16 Board composition 181 17.8 The year ahead 90 21.17 Chief Executive Officer 181 18 Heritage 91 21.18 Board independence 181 18.1 Overview 91 21.19 Access to information and 18.3 The year ahead 91 independent professional advice 182 21.20 Conflict of interest 182 19 Communications highlights 92 21.21 Other board memberships 182 19.1 Overview 92 21.22 Board meetings and their conduct 182 19.2 The year ahead 94 21.23 Attendance at Board meetings 20 Financial statements 96 2019/20 183 Director’s declaration 97 21.24 Attendance at committee 4 Independent auditor’s report 98 meetings 2019/20 183 Statement of comprehensive income 102 21.25 Director remuneration, Statement of financial position 103 appointment and education 184 Statement of changes in equity 104 21.26 Board performance 184 Statement of cash flows 105 21.27 Equity, diversity and inclusion 184 Notes to the financial statements 106 21.28 Work Health and Safety 186 Statement of land holdings 169 21.29 Overseas travel by Port 21 Statutory disclosures 170 Authority of New South Wales employees 187 21.1 Charter, aims and objectives 170 21.2 Guarantee of service: 21.30 Funds granted to Port Safety Operating License 170 non-government 21.3 Relevant legislation 171 community organisations 187 21.4 Changes in Acts and 21.31 Community engagement/ subordinate legislation 171 consumer response 187 21.5 Economic or other factors 21.32 Publications 187 affecting achievement 21.33 Annual report cost 188 of operational objectives 172 21.34 Land disposal 188 21.6 Performance relative to the Statement of Corporate Intent 172 21.35 Executive positions 188 21.7 Exemptions for the reporting 21.36 Public interest disclosures 189 period provisions 172 21.8 Response to significant issues raised by the Auditor General 173 Port Authority of New South Wales thanks all employees whose images of our working ports and waterways have been used to illustrate this report. Port Authority of New South Wales of New Authority Port 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 1 Overview Port Authority of New South Wales (Port Authority) is a state owned Annual Report 2019/20 Annual Report corporation that manages the navigation, security and operational safety needs of commercial shipping in Sydney Harbour, Port Botany, Port Kembla and the ports of Newcastle, Eden and Yamba. Port Authority’s statutory objectives and • management of: functions are derived from the provisions • cruise facilities and terminal services of the State Owned Corporations Act 1989 (NSW), the Ports and Maritime • common user berth facilities Administration Act 1995 (NSW) and the • retail/commercial properties Port Safety Operating Licence (PSOL) • governance of Hunter Coal issued under section 12(2) of the Ports Export Framework. and Maritime Administration Act. (See Section 21.2 for details.) Port Authority has the role of Harbour Port Authority operates to keep its Master in all commercial ports in NSW. ports safe for shipping and secure Each Harbour Master is appointed for everyone, and to protect port under section 85 of the Marine Safety Act 1998 (NSW). The general functions 6 environments. of a Harbour Master are outlined It provides its customers with in section 88 of the Marine Safety Act a professional service that consistently and can be summarised as having aims to add value and take their business ‘powers to direct and control the needs into full consideration. movement, entry and exit of vessels The primary roles and responsibilities within port areas’. Port Authority of Port Authority, and associated is also the lead agency for responses business activities, include: to maritime incidents in coastal waters stretching from Fingal Head, • safe navigation of shipping movements Port Stephens in the north, to Gerroa, within each port south of Port Kembla. • survey of harbour/port approaches, Port Authority owns and manages key channels and berthing boxes NSW assets including common user • pilotage (marine pilot safely navigating berths at Glebe Island and White Bay a ship in and out of a port) in Sydney Harbour. Port Authority also provides land on long-term leases and • port security short-term licences in the area adjacent • safety of port operations to berths at Glebe Island and White Bay. • response emergency Port Authority owns and manages including the clean-up of spills Sydney Harbour cruise facilities in the marine environment at the Overseas Passenger Terminal • dangerous goods administration, at Circular Quay and at the White Bay as contained in Part 11 of the repealed Cruise Terminal at Rozelle and manages Dangerous Goods Regulation 1999, the Eden Cruise Wharf in Twofold Bay. and preserved by the Work Health and Safety Regulation 2011 (NSW) Port Authority of New South Wales of New Authority Port 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.
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