NSW FREIGHT November 2013 AND PORTS STRATEGY NSW Freight and Ports Strategy November 2013 ISBN: 978-1-922030-36-8 Disclaimer While every reasonable effort has been made to ensure that this document is correct at the time of printing, the State of New South Wales, its agents and employees, disclaim any and all liability to any person in respect of anything or the consequences of anything done or omitted to be done in reliance upon the whole or any part of this document. Copyright notice © State of New South Wales through the Director General of Transport for NSW, 2013 Transport for NSW 18 Lee Street Chippendale NSW 2008 www.transport.nsw.gov.au NSW FREIGHT AND PORTS STRATEGY MINISTERS’ MESSAGE Underpinning this Strategy is the need to address the significant challenges NSW will face in the next 20 years amidst the doubling of the State’s freight task. These challenges include: increasing the efficiency of the existing network infrastructure, expanding network capacity to support economic growth, funding infrastructure construction and funding the growing operations and maintenance task in line with increasing utilisation of the network. The release of the final NSW Freight and Ports Concurrently the needs of industry, community Strategy is an important milestone for NSW. expectations and sound environmental The first of its kind delivered by a NSW management practices must underpin Government, the Freight and Ports Strategy our decisions. This Strategy is the NSW is the 20 year road map that will ensure freight Government’s call to action in developing, is at the forefront of our economy. implementing and evaluating programs to meet these challenges through an integrated In December we released the NSW Long Term and collaborative approach across all levels of Transport Master Plan, the first integrated government and industry. transport strategy we have had in NSW. It brings together land use planning with The NSW Government has partnered with transport planning and integrates planning industry and the community to develop the for freight and passenger movement, as well Freight and Ports Strategy. A four month as all modes of transport. consultation period following the draft Strategy’s release in November 2012 was The scale of the freight task over the instrumental in strengthening this Strategy, next 20 years warrants decisive action by ensuring valued perspectives on key issues raised government. The expected doubling of freight such as air freight, coastal shipping, regional volumes through NSW to nearly 800 million road freight productivity and infrastructure tonnes by 2031 requires a strategic focus to funding were integrated in the final version. ensure policy, infrastructure and land-planning initiatives deliver a freight network where On behalf of the NSW Government, we capacity and performance can meet demand. thank the community, freight industry and government departments from local, state and An efficient and effective freight network is federal jurisdictions for their valued contribution the cornerstone of economic productivity and to the development and delivery of the final growth. It reduces the cost of everyday goods Freight and Ports Strategy. and services, underpins the strength of our economies, and generates vital employment. Freight matters to every person in the State. Gladys Berejiklian Duncan Gay Minister for Transport Minister for Roads and Ports 1 NSW FREIGHT AND PORTS STRATEGY CONTENTS FOREWORD 5 It’s all about logistics 5 1 INTRODUCTION 7 1.1 Economic context 7 1.2 Purpose of the NSW Freight and Ports Strategy 10 1.3 Strategy framework 11 1.4 Development and implementation of the NSW Freight and Ports Strategy 14 1.5 Strategic Action Programs summary 16 2 UNDERSTANDING THE CURRENT AND FUTURE FREIGHT TASK 19 2.1 Double the volume of freight in 20 years 19 2.2 The importance of regional freight movement in NSW 35 3 PARTNERSHIP BETWEEN GOVERNMENT AND INDUSTRY 41 3.1 Summary of engagement process 41 3.2 Progress by industry and government 44 4 STRATEGIC ACTION PROGRAMS 51 4.1 Strategic Action Program 1 – Network efficiency 51 ACTION 1A – Identify freight movements and network demand 53 ACTION 1B –Shift more freight movements to off-peak periods 61 ACTION 1C –Develop a seamless interstate freight network 65 ACTION 1D –Improve productivity of the road freight network 68 ACTION 1E –Improve productivity of the rail freight network 77 ACTION 1F –Maintain productivity of the air freight network 80 ACTION 1G –Facilitate the use of coastal shipping 82 ACTION 1H –Improve efficiency of landside cargo transport in regional and urban areas 83 4.2 Strategic Action Program 2 – Network capacity 96 ACTION 2A – Identify and protect strategic freight corridors 98 ACTION 2B – Develop and maintain capacity for freight on the road network 104 ACTION 2C – Develop and maintain capacity for freight on the rail network 107 ACTION 2D – Develop effective port growth plans to meet freight volume growth 111 ACTION 2E – Foster intermodal terminal network development 120 ACTION 2F – Coordinate regional infrastructure and service provision 125 ACTION 2G – Develop and maintain projects to support network capacity 128 4.3 Strategic Action Program 3 – Network sustainability 135 ACTION 3A – Embed freight requirements in planning schemes 137 ACTION 3B – Manage congestion, noise and emission impacts of freight transport 140 ACTION 3C – Prioritise safety of freight transport 148 ACTION 3D – Support the growth of the transport and logistics workforce 150 5 IMPLEMENTING THE NSW FREIGHT AND PORTS STRATEGY 153 5.1 Measuring and reporting on progress and impact 153 5.2 Prioritisation 155 5.3 Funding and financing 160 2 NSW FREIGHT AND PORTS STRATEGY A NSW LOGISTICS TASK (2011-2031) 165 NSW Strategic Freight Model 165 Supply chain logistics 165 Size of the logistics task 168 Origin and destination of freight 171 Mode share analysis 174 Importance to the economy 175 B ROAD NETWORK 177 Road hierarchy 178 Main freight routes 180 Recent upgrades to key routes 181 High Productivity Vehicles 182 Connectivity issues 184 Light commercial vehicles 185 C RAIL NETWORK 187 Rail operators and access 187 Rail network structure 187 Role of ARTC 189 Network activity and limitations 190 Rail service operation and procurement 191 Network improvements 192 D KEY NSW NETWORK NODES 197 Intermodal terminals and freight activity precincts 197 NSW ports and coastal harbours 200 Major airports 202 E PIPELINES 205 F INFRASTRUCTURE PROGRAM 209 Current position 209 G CONSULTATION TO DEVELOP THE FINAL NSW FREIGHT AND PORTS STRATEGY 219 H GLOSSARY, ENDNOTES AND REFERENCES 223 Glossary 223 Endnotes 231 References 232 3 NSW FREIGHT AND PORTS STRATEGY The Central Tablelands Livestock Exchange (CTLX) is located 10km south of Blayney near Carcoar on the Mid Western Highway (B64). The CTLX equips the Central Tablelands with a state of the art livestock auction facility that provides a competitive market for buyers and sellers. CTLX is one of the most advanced livestock facilities in Australia today. It provides separate cattle and sheep selling pavilions with capacity to hold 26,000 sheep and 3,900 cattle undercover. The renewal of ageing regional infrastructure with efficient best practice facilities and infrastructure will ensure the competitiveness of NSW business. Investment by business needs to be supported with a transport network that does not constrain operations and eliminates unnecessary costs. 4 NSW FREIGHT AND PORTS STRATEGY FOREWORD It’s all about logistics The movement of freight is a basic element of This document explains how Transport for logistics. In NSW, the freight movement task NSW will work with commercial interests is mainly undertaken on a shared transport and across government to provide an efficient network where the movement of freight and network and a framework for managing growth. the movement of people compete for space. It highlights short, medium and long term As government primarily provides the physical tasks to improve freight movement on the network, and access to it, there is an inexorable network. This Strategy will inform government link between the actions of government and the and commercial investment decisions across all performance of logistic tasks across the economy. modes of transport and allow for the alignment of purpose. The bulk commodities that are exported, the containers that carry general goods, the food The role of government in the freight task people consume and the clothes they wear, all focuses on delivering network capacity to at some time, use the railways, roads, airports enable supply chain efficiency. This includes and waterways that are also used by travellers removing obstacles for achieving best practice, for work and recreation. There are some parts of creating capacity and, where necessary, the network, such as rail lines in regional NSW, becoming involved in the marketplace to ensure that are used specifically for the movement of the network operates efficiently. grain and coal. However, the interaction of the These actions will have to be achieved within movement of freight with the movement of available public funds, influenced by fiscal trends people generally happens across the network. and the cost of infrastructure. Government can The scale of the transport management facilitate private investment, and will continue to FOREWORD task is formidable. In NSW, 67 billion tonne balance the needs of industry and productivity kilometres of freight is moved annually and with public amenity. It will concentrate on the value of the products carried exceeds reducing network congestion and mitigating $200 billion. Transport of freight is critical to any noise and pollution impact on communities the State economy and the efficiency of the and the environment. transport network contributes to the success In addition to funding, the transport network and growth of NSW as well as being significant also needs land. Future transport corridors, and to maintaining national defence interests and land for logistics facilities, need to be protected.