Freight Rail

Intermodal is the future for NSW, says local ports boss

Marika Calfas, chief executive officer of NSW Ports. Photo: NSW Ports

Ian Ackerman – Sydney

Rail transport is on the rise in New South Wales, and new connections to Port Kembla are in the offing as it builds container capacity, according to NSW Ports CEO Marika Calfas.

Speaking at the Biennial Port Kembla Shipping Australia luncheon in Wollongong on Friday (August 26), Ms Calfas said there was an aspirational goal of moving 3m TEU on rail over the next 30-year period.

“A container terminal in Port Kembla in the future; this will also be part of the solution,” she said.

“And that will also involve a connection – which could be a freight rail connection such as the Maldon to Dombarton – which would connect Port Kembla to the freight rail network in the western part of Sydney, out to the Moorebank Intermodal and other intermodals that are necessary to support the container growth needs of the state.”

The freight rail links would also connect back round to Port Botany, connecting the two ports with rail, Ms Calfas said.

“The growing rail is really core to what we see as being a sustainable port supply chain and keeping the supply chain efficient,” she said.

Along with increasing freight movements by rail around the state, Ms Calfas said NSW Ports was working to use land infrastructure more efficiently.

“We’re looking to drive optimal utilisation of existing land and infrastructure in order to cater to for growing trade needs going forward,” she said.

“And, this is before investing in new land and infrastructure, which will definitely need to be delivered and will be required. But, it’s important to utilise what we have and make that the most efficient that we can before we use scarce money resources to invest in more.

“Port Kembla has significant opportunity to grow the volume of existing trade, and also handle new trades within the infrastructure that exists, but there’s also plenty of opportunity to grow the infrastructure to provide more capacity.”

A 2011 economic study by consultants Hyder and ACIL Tasman for the Department of Infrastructure & Transport found that there is no economic justification for building the Maldon-Dombarton rail line even though the route is part-prepared.

“The net present value using a 7% real discount rate is estimated as negative $206 million – that is, constructing a Maldon-Dombarton line would not generate sufficient benefits to cover its costs. The benefit cost ratio is 0.56 – that is, estimated economic benefits are only 56% of the costs. The reasons for this result are the high cost of construction because of the terrain, and the existence of spare capacity on the Moss Vale-Unanderra line which can be increased if necessary,” the report says.

This article originally appeared in Rail Express affiliate Lloyd’s List Australia.

1 Comment

  1. Containers Maybe the Way to Go in Terms of Shipping Goods etc. Sydney Has ONE Advantage Over Places Like Brisbane, Melbourne, and Perth and 0ther Locations. Its on the “Standard Gauge Network” and that Gives Sydney a Strategic Advantage on Shipping Goods Within the State and Else Where in the Country as