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            december 14, 2018

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Indiaexportnews.com

NSW Ports to spend US$88 million

  03.12.2018    

Australia's NSW Ports is to invest A$120 million (US$88 million) to kick off on-dock rail at Sydney's Port Botany's three container terminals, starting next year, reports Brisbane's Australasian Transport News.
Investment will be staged, with investment required to invest in rail operating equipment to meet target terminal capacities, the port operator said.
Stage 1 involves Patrick's terminal with other stages aiming to deliver the same outcome at each of the DP World Australia and Hutchison terminals, in line with the port master plan.
To fund the investment, NSW Ports will implement, from July 1, a "modest increase" of A$3.08 per TEU in wharfage fees on full imports and exports.
These are paid ultimately by cargo owners who are already exposed to the burden of increasing stevedore infrastructure surcharges.
"This has been spread over the long term to minimise the wharfage increase and will be removed once the cost of the investment has been recovered," said NSW Ports.
The announcement comes about two years after Port Botany's truck numbers began exceeding those servicing Port of Melbourne, the nation's largest container port, and in the midst of a decline in Port Botany's freight on rail rate that peaked in 2016-17 at around 17 per cent.
Stage 1 aims to double rail capacity from 750,000 for 1.5 million TEU.
Patrick terminal trains serviced are to rise from 16 to 32 a day, with a view to also covering regional cargo needs, while turnaround times at the four sidings are to see a 33 per cent turnaround time reduction through automated rail mounted gantries.
"The growth of containers on rail is a key objective in NSW Ports' Master plan, to cater for the growing trade needs of NSW Ports," said its CEO Marika Calfas."This investment will build greater rail capability at the port, supporting the government's investment in completing the Port Botany rail duplication and ongoing investments in large scale intermodal rail logistics centres at Enfield and Moorebank," she said.
"Over the next four years, NSW Ports will invest $120 million on Stage 1 of this uplift to create new on-dock rail capacity at Patrick's Port Botany Terminal.
"The new rail terminal will ultimately deliver one million TEU capacity. In time, NSW Ports will invest at the other two container terminals," she said.
"Increasing rail capacity at the port means a faster, cheaper, more sustainable way for exporters and importers to get their product to market," Ms Calfas said.
The Australian Logistics Council (ALC) welcomed the announcement by NSW Ports that it will invest up to A$120 million over the next four years as the first phase of a major effort to enhance on-dock rail infrastructure capacity at Port Botany.
"Moving more freight via rail will be essential if Australia is to successfully meet its growing freight task and address road congestion around key port freight facilities," said interim ALC chief executive Lachlan Benson.
"Today's announcement from NSW Ports should be welcomed by exporters and importers and their supply chain delivery partners alike, as this will allow them to get their goods to market more efficiently," he said.



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