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PORT of NEWCASTLE Port Master Plan 2040

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PORT OF NEWCASTLE Port Master Plan 2040 Our Strategic Development Opportunities to 2040 CONTENTS Foreword 3 Executive Summary 4 Introduction 7 Overview of the Port of Newcastle 11 Strategic Context 19 Our Stakeholders and Environment 21 Port Capacity 26 Transport Connectivity 36 Growing Trade 47 New Facilities and Infrastructure 66 Protecting the Port 70 Implementation 77 Glossary 81 Ackowledgement The Port of Newcastle acknowledges the Traditional Custodians of the land and waters of Newcastle Harbour, the Awabakal People and pays respect to all Elders past, present and future. Port of Newcastle | Port Master Plan 2040 Port of Newcastle | Port Master Plan 2040 2 3 FOREWORD The Port of Newcastle is a proud This Port Master Plan outlines the key strategic development opportunities for the Port and the broader working port with a strong history. region, including: The purpose of this long-term Port Master Plan is to • The Newcastle Container Terminal; communicate our broad and strategic approach by • The Newcastle Bulk Terminal; outlining both our current and future development and • An Automotive and Ro-Ro Hub; trade opportunities to 2040. • The Maritime Precinct; • The Newcastle Cruise Terminal; and As a global gateway for New South Wales, the Port of • The continuation and growth of major bulk Newcastle (PON) enjoys a significant competitive trades including coal, fuel, fertiliser, wheat and advantage, with a major seaport and connectivity to a mineral concentrates. world-class national rail and heavy vehicle road system. With the shipping channel currently only operating at Our success depends on our ability to be an efficient 50% capacity, vacant portside land and market interest, global trade gateway, working in partnership with those the opportunities are immense. who rely on our services, those who regulate our activities, and those who are our neighbours. The Port plays a significant role as an economic driver and a catalyst for growth throughout our region, state We are dedicated to operating a safe, sustainable, and nation. In the Lower Hunter alone, activity within environmentally and socially responsible business in the Port of Newcastle contributes $1.6 billion and 9,000 partnership with our tenants, port users, community and jobs per annum. This does not include the significant Government agencies. The Port Master Plan 2040 is contribution of associated industries such as mining and reflective of these values, and I commend it to our agriculture, which contribute many billions more. stakeholders and partners. EXECUTIVE SUMMARY The Port of Newcastle’s vision is to maintain Newcastle’s position as one of the leading and most efficient global-scale ports, and to facilitate continued growth Australia’s ports facilitate the movement of $1.2 billion worth of trade and development of existing and new trades in a every day.1 sustainable manner. We recognise the responsibility that comes with stewarding an iconic asset for the next 95 years. We are committed to driving collaboration The Port of Newcastle is the global gateway for the Container Terminal. We are the port ready to host the with Government, communities and other stakeholders Hunter Region and New South Wales. It is the largest latest technologies, industry innovation and a step to agree on the future and deliver the benefits of trade port on the East Coast, and Australia’s third largest port change in the way freight is moved in, out and through growth. by trade volume. It is well-placed to support the New South Wales and Australia. predicted doubling of Australian freight over the next 20 The Port of Newcastle has embarked on an ambitious years and beyond. Many Australian ports, including the Port of Newcastle, diversification strategy. Whilst coal exports provide a now operate in a commercial environment, in which port stable foundation for our growth, we are driven by the By 2040, the City of Newcastle will be home to 200,000 owners and managers are focused on utilising the full Professor Roy Green Craig Carmody need to grow and diversify our trade base to meet the people, with the population of the Hunter growing to capacity of their assets to deliver greater efficiency and Port of Newcastle Port of Newcastle demands of our customers and the containerisation of 870,000 and New South Wales to over 10 million shareholder value. Chairman Chief Executive Officer some trades. people.2 The Port, through coal export trade, will continue to provide a stable foundation for our region This Port Master Plan provides a broad and strategic and state’s economy, and our business. Trade volumes approach, identifying future developments and of fuels, and dry bulk such as wheat, grains and fertiliser, opportunities to 2040. The following goals underpin will continue to grow. this approach: Our trademark for the next twenty years, however, will • Promote the capacity of the Port and the supply be our diversification. The Port of Newcastle has chain to support the economy. abundant capacity to grow trade volumes and establish • Utilise the existing road and rail transport assets new, efficient and cost-effective supply chains for buyers to improve freight efficiency. and producers. A key driver of diversification and growth • Facilitate new trades and supply chains. of business opportunities for Newcastle and the Hunter • Support the development of new facilities and will be the development of the Newcastle enabling infrastructure. • Protect the Port and transport corridors from 1 Ports Australia website 2018 urban encroachment. 2 NSW People and Places Dashboard, NSW Planning and Environment website 2017 Port of Newcastle | Port Master Plan 2040 Port of Newcastle | Port Master Plan 2040 3 4 Our vision is for the Port of Newcastle to become Australia’s first-choice East an efficient, sustainable, profitable and innovative manner. To achieve this vision, Coast port, able to accommodate, attract and grow a diverse trade base in the Port of Newcastle has identified the following goals: The Port of Newcastle, with its central geographic For every dollar spent in the Port of Newcastle, there is a flow-on benefit for the local, state and national economies of between PROMOTE THE location on the eastern seaboard, existing capacity $0.84 and $1.32. For every million dollars of output generated by the Port of Newcastle, 5.2 jobs are created.3 CAPACITY OF THE and supply chain infrastructure, is well-placed to support the New South Wales and Australian The Port handled over 167 million tonnes of trade and 4,700 ship movements in 2017. Modelling of the shipping channel has shown PORT AND THE SUPPLY economies. that over 10,000 ship movements per year can be accommodated. This, together with planning approval for additional berths, investment in new port infrastructure, and a significant quantity of available, serviced and zoned port land, provides for future CHAIN TO SUPPORT growth. THE ECONOMY 3 Port of Newcastle Economic Impact Report 2016/17 Econsearch Freight in Greater Sydney is expected to double over Ensuring that existing road and rail transport infrastructure are being utilised and optimised to their full capacity is critical to UTILISE EXISTING the next 40 years and increase by 25% in Regional supporting and improving the efficiency of the New South Wales freight task. NSW over the same period.4 Ports outside of capital ROAD AND RAIL cities, together with their road and rail supply chains The Port of Newcastle has excellent access and connectivity to the national highway and rail networks that link to capital cities, TRANSPORT ASSETS offer significant capacity to reduce congestion. and the catchment. Both the immediate road network and the broader highway system has capacity to accommodate the Ensuring that existing road and rail transport current and forecast vehicle growth without the need for major infrastructure upgrades. Similarly, the rail network have capacity to TO IMPROVE FREIGHT infrastructure are being utilised and optimised to their accommodate the contracted coal volume, as well as latent capacity to move non-coal trade, including bulk grain and containers, EFFICIENCY full capacity is critical to supporting and improving from regional New South Wales to Newcastle. the efficiency of the New South Wales freight task. 4 Future Transport 2056 TfNSW 2018 Growing, attracting and facilitating new trade Facilitating infrastructure to support new trades and supply chains can address infrastructure bottlenecks and capacity constraints and new supply chains is a key focus for the Port in capital city ports, and respond to changing technology such as automation, modal shifts and bulk containerisation. FACILITATE NEW of Newcastle. The introduction of new import and The Port Master Plan 2040 outlines the rationale for the development of a Newcastle Container Terminal, as well as identifying TRADES AND SUPPLY export trades and new supply chains will be what drives innovation, efficiency and value for the Port, other opportunities such as the establishment of a specialist Automotive and Ro-Ro Hub within the next twenty years. CHAINS its shareholders and the community. The Port Master Plan 2040 supports the This includes smaller enabling projects that can utilise, improve and enhance the existing road and rail networks for greater SUPPORT THE development of new transport infrastructure and efficiency, productivity and consequence. DEVELOPMENT OF logistics facilities such as upcountry intermodals. NEW FACILITIES AND These facilities can leverage on the proximity to Major projects,
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