Australian Journal of Maritime & Ocean Affairs

ISSN: 1836-6503 (Print) 2333-6498 (Online) Journal homepage: http://www.tandfonline.com/loi/ramo20

Ports and the Environment 2013

Nicholas Whitlam
To cite this article: Nicholas Whitlam (2013) Ports and the Environment 2013, Australian
Journal of Maritime & Ocean Affairs, 5:4, 130-132, DOI: 10.1080/18366503.2013.10815744
To link to this article: http://dx.doi.org/10.1080/18366503.2013.10815744

Published online: 01 Apr 2014.

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Date: 02 November 2015, At: 05:19

Ports and the environment 2013

Australian Journal of Maritime and Ocean Affairs (2013) Vol. 5(4)

Ports and the Environment 2013

Nicholas Whitlam*
Abstract
Australias seaports are critical for the nations economic wellbeing. 98% of our national trade is by
sea. Seaports are the quintessential intermodal facilities; every item of trade moves from one mode of
transports the sea to another, typically road or rail. And it is these costs that we must minimise.
Australias ports are in good shape with strategies in place for substantial future growth but they are
also operating in a very complex environment.

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Introduction
Containerisation changed everything for all but
bulk ports. And now, 100 years after that visionary
Master Plan was developed, Governments, agencies
and peak bodies are once again facing the task of
master planning the future of our seaports.

Her colleagues knew Margaret Thatcher, when they

were most exasperated with her, as TINA. It was
an acronym for There Is No Alternative. And so
it is with Australias seaports: 98% of our national
trade is by sea. There is no alternative. Let me
provide a report on our nations ports. Before I do, I
would like to congratulate the Royal Australian
Navy for delivering the spectacular Fleet Review in
celebration of the first Australian Naval fleet entry
in 1913. The Fleet Review was an outstanding
success and that speaks volumes for the many
people who worked hard to make sure every
contingency was covered, no doubt a logistics
nightmare but it was so well planned that we saw
little comment on this brilliant aspect of the event.

The importance of Australias seaports

Ports have had to constantly evolve to meet the
relentless demand for trade, especially here in
Australia where as I have noted 98% of our
national trade is by sea. The reality is our ports
must continue to compete and grow to meet the
relentless demand for trade. We have no choice.
There is no alternative. While there is universal
recognition that our ports must grow and must
improve efficiency such improvements can only be
realised with the support of the Australian
governments (federal, state and local), the shipping,
stevedoring and supply chain industries and the cooperation and support of unions and local
communities.

Interestingly, back in 1913 Sydney was actually far

better placed to accommodate such a fleet as there
were more than 12 kilometres of berth space
available. That would not work today. We have
other needs and other solutions. The harbour was
the thriving commercial hub of the nation and in the
context of my subject matter it is very interesting to
note that in 1913 the Sydney Harbour Trust
produced a visionary co-ordinated Master Plan for
future development of the port. They, and other
port authorities around the nation, were struggling
with the boom in trade brought about by the steam
ship revolution and long term master planning
became a tool to meet the demands of that boom.
They included concepts for road, rail and inland
waterway connection and the development of land
buffer zones behind wharves. even included
elements of environmental protection.

It has been said many times before that the one of

the big challenges for Australian ports is the
tyranny of distance. Australia is an island continent,
the sixth largest country in the world, with 35
thousand kilometres of coastline. We float in
isolation between the Indian and Pacific Oceans so
far from the hubs of global trade. As our national
anthem says we are girt by sea.
Our distance from these hubs is the one thing we
can do nothing about fuel costs being shippings
biggest cost but that does put added pressure on
our ports to offset the higher costs of shipping with
best practice port and landside efficiencies.
Seaports are the quintessential intermodal facilities;
every item of trade moves from one mode of

History shows that this Sydney Master Plan was

very effective until containerisation began to
revolutionise global trade in the late 1960s.

*Chairman of Port Kembla Port Corporation, Sydney Ports Corporation and Newcastle Port Corporation.

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Australian Journal of Maritime and Ocean Affairs (2013) Vol. 5(4)

transports the sea to another, typically road or
rail. And it is these costs that we must minimise.

expansion in coming years could increase capacity

to nearly 500 million tonnes a year.

Economic success

At Newcastle, the ports performance has been

exemplary, reporting its 13th consecutive record
year of trade, with volume increasing almost 16%
to 148.87 million tonnes. Coal-handling capacity
has more than doubled in the past 8 years with
further capacity expansion underway. Last year the
Newcastle Coal Infrastructure Group commissioned
its Kooragang 10 berth with a maximum capacity
export target of 66 million tonnes of coal per
annum. The final stage of its terminal is due to be
completed in late this year.

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We are a nation of just 23 million people and yet

globally we are punching well above our weight.
Australia is ranked 12th of the 195 largest
economies by GDP. Australia is the worlds 20th
largest importer and exporter; i.e. the twentieth
largest trading nation. The Australian economy
grew at an average annual rate of 3.6% over the
past 15 years, well above the OECD average of
2.5%. Such success brings increased demands, not
least at our ports

Our biggest container ports Melbourne, Sydney

and Brisbane have also experienced strong
growth over the decade. This growth has mainly
been in mainly imports: Melbourne 62%; Sydney
75%; and Brisbane 72%. Our ports handled more
than 32-thousand cargo ship visits last financial
year and it has been increasing more than 5% a
year for the past 5 years.

While much of the worlds trade remains in the

doldrums following the global financial crisis,
activity through Australian ports is remaining
strong. Over the past decade, total throughput for
our 46 trading ports is up by 418 million mass
tonnes, or close to 68%. Total international cargo
handled by Australian ports increased last financial
year by 9.1 per cent, by value, and increased 9.7 per
cent, by weight. For the year ended June 2012 twoway trade totalled A$625 billion, around 43 per
cent of nominal GDP and up more than 9% on the
previous year.

Australias bulk commodity exports and

metropolitan container imports are both expected to
double in size every ten years. As I mentioned
before the relentless growth in trade is putting
enormous pressure on our ports to perform and
expand and where ports co-exist with urban
communities the task becomes more difficult. We
have shown that we can meet the challenges at our
bulk ports. The way forward is less clear at many
of our container ports.

Size, variety and growth of Australias Ports

Australia has the biggest iron ore and coal
exporting ports in the world Port Hedland and
Newcastle and as such it is no surprise that iron
ore and coal are Australias leading export items.
Valued at A$111 billion iron ore and coal exports
account for 35 per cent of Australias total exports
of goods and services. These two commodities have
risen by an incredible average annual rate of 34 per
cent and 16 per cent respectively over the past five
years.

It not just the relentless growth in volume; perhaps

the next big challenge for Australias container
ports will be their ability to handle the ever
increasing size of ships. In the past 50 years, the
average size of ships has increased 250 per cent
they have never been so sophisticated never
carried so much cargo never been safer and never
been so environmentally friendly as they are today.
With bunker costs so high, shipping companies are
trending increasingly to larger ships and while we
may never see a visit from Maersks Tripe E ships
capable of carrying 18,000 TEU (twenty foot
equivalent units), our ports will be no doubt be
expected to host march larger vessels than they
currently accommodate.

Australias bulk ports have witnessed extraordinary

growth in the last decade, with tonnage rising by
over 75 per cent; mining exports accounting for
most of this growth. The growth in activity has
been achieved by expanding infrastructure capacity
along the logistics chain, such as at the ports
themselves.
For example, at Port Hedland iron ore handling
capacity has expanded five-fold in the last decade
and iron ore capacity has more than doubled at
Dampier and at Cape Lambert. The total throughput at Port Hedland in the 2012-13 financial year
was more than 288 million tonnes, and this year it
is expected to exceed 320 million tonnes an
increase of 11%. The port is forecasting that further

And what of Tasmania? It suffers because of the

high cost of international and interstate trade. For
international trade, moving containers to
Melbourne for trans-shipment means higher costs
in Tasmania and negative effect on trade growth.
The answers are not clear.

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Australian Journal of Maritime and Ocean Affairs (2013) Vol. 5(4)

Planning

I know we are all watching with interest where the

new Federal government stands on this although we
have already heard positive words from the new
Infrastructure and Regional Development Minister
Warren Truss. I hope he understands the
importance of landside rail transport. In terms of
improving port and landside efficiencies,
Australias bigger ports have recognized the need to
stream-line the flow of freight through terminals
with intermodals, innovative co-ordination of road
and rail users and of course, automation.

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Various Governments, peak bodies, organizations,

scholars and communities have all had opinions on
long-term coordinated planning around future ports
capacity, transport corridors and shipping channels
feeding our major ports. Generally, regions or
localities in which seaports are located are best
equipped to understand what their ports and
landside strategies need to address and many are
in the process of doing just that. Victoria has just
announced its Freight State strategy and the new
NSW and Queensland Governments are preparing
to release their ports and freight strategies. It is still
work in progress for the other state and Northern
Territory governments.

Our major terminals are investing hundreds of

millions in post-Panamax crane and straddle
automation as Australias container ports move
from duopoly to tri-opoly stevedoring with
improved efficiency and competition the desired
outcome. Into this mix our ports are increasingly
being privatized Portland, Flinders, Geelong,
Brisbane, Port Botany and Port Kembla have now
been privatised with Newcastle next cab off the
rank if scoping studies find the sale viable.

In 2007 the Australian Government report - The

Great Freight Task stated that the problem for
Australias infrastructure planners is to achieve
the necessary expansion of Australias land
transport infrastructure, with the most efficient
distribution of funds between competing rail and
road interests.

To my mind it makes all the sense in the world for

State Governments to privatize their ports once the
port has reached a mature stage. The governments
have taken the entrepreneurial role and risk by
developing the port; yet have unending demands on
their purse for new roads and schools and hospitals
and so on; once a port is mature, they can cash in
their investment and recycle the funds into new
infrastructure and conservative long term investors
like super funds can enjoy what is effectively
annuity incomes from the developed port assets,
and carefully invest further.

The National Ports Strategy by Infrastructure

Australia and the National Transport Commission
released in 2012 recognised coordinated port
master planning as significant to improve land use
planning and corridor protection in and around
Australian ports.
In March 2013 the Australian Logistics Council
argued that addressing Australias commercial
infrastructure needs is the highest priority for the
freight and logistics industry.

Conclusion

In August 2013 a Ports Australias report also

identified the importance of Master Planning to
create greater environmental friendliness and
create additional economic value through
increased investor confidence.

Generally, Australias ports are in good shape with

strategies in place for substantial future growth but
they are also operating in a very complex
environment. The challenge will always be what is
needed against what can be had. How do we
continue to meet ever increasing import and export
demand without conceding that almost everything
we consume or use must come and go through a
port that needs to share our roads and rail and to coexist with encroaching urban communities? There
is no silver bullet. Our ports must grow and must
find ways to improve efficiencies. They must also
comply with environmental laws and must find
ways to engage communities positively in that
process. There is no alternative. It was a challenge
back in 1913 and no doubt it will still be a
challenge in 2113.

The Export Council of Australia in its Trade

Policy Recommendations report released in
August 2013, highlighted the need to focus on
removal of impediments that hinder Australias
ability to compete internationally including trade
facilitation
and
eliminating
unnecessary
government red and green tape.
The important message here is that everyone is
aware of the need to ensure our ports can cope with
future demand and that stakeholder collaboration in
port and supply chain planning is critical to
achieving desired outcomes.

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