Patrick, DP World see rail as the answer to Botany efficiency problem

The movement of freight around Sydney will not be improved by focusing solely on the operation of the vehicle booking systems (VBS), Patrick Corporation has told an inquiry into the interface between land transport industries and the stevedores at Port Botany. Instead, increases in container throughput will only be handled by focusing attention on three key areas: by improving the efficiency of road freight movement to and from Port Botany, improving the efficiency of rail into and out of Port Botany, and promoting the use of inland terminals. Its stevedoring counterpart, DP World, told the inquiry in a long, wide-ranging submission that it supported the increased use of rail as a transport mode to and from the port, and that consolidation of the more than 200 container carriers in the trucking industry would result in better utilisation of port assets. &#8220Owing to the complexity of the links of the import&#47export logistics chain, there is no single panacea for all of the inefficiencies in the chain,&#8221 Patrick told the Independent Pricing and Regulatory Tribunal of New South Wales. &#8220However, what is universally accepted is that in order to minimise the inefficiencies, all of the previous reviews agree &#8211 the chain must work together as a coordinated whole. &#8220If there is mismatch of capacity at any link of the chain, inefficiency results with an overall detrimental effect on the chain.&#8221 The efficiency of road freight movements could be improved through the continued use of existing measures &#8211 including the VBS, no show charges and storage charges &#8211 with other measures aimed at eliminating the mismatch of hours, Patrick said in its submission. Other measures might involve expanding the hours of operation of carriers and enhancements to the VBS aimed at greater efficiency from carriers, and addressing misaligned incentives along the supply chain. Patrick said the achievement of 40% rail modal share was being hampered by constraints outside the terminal. &#8220The difficulties for rail to gain significant modal share are legion,&#8221 its submission read. DP World supported the objective of increasing the number of containers moved through rail as a percentage of total moves at Port Botany &#8211 even though it presented higher costs in comparison to containers delivered to the road interface. &#8220We have plans to invest capital into improving our rail infrastructure within the container terminal to facilitate the achievement of this objective,&#8221 DP World said in its submission. &#8220Fundamentally, we are of the view that a consolidation in the transport carrier industry sector would be in the interests of port stakeholders as a whole. &#8220Port Botany is served by over 200 carriers. A consolidation in the number of carriers would, in our view, promote more efficient utilisation of trucks and greater back loading, resulting in fewer truck movements through the community to the benefit of consumers generally.&#8221 &#8226 Full story in Lloyd’s List DCN next week.

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