A brand new container terminal incorporating rail access is on the cards for Burnie in northern Tasmania, with stevedore DP World and government body Tasports announcing plans for such a facility this week.
However, the stevedoring giant said it is contingent upon the federal government’s Shipping Legislation Amendment Bill 2015 getting through parliament.
The Bill is expected to be voted upon in the Senate next week, and the legislation is on a knife-edge, with the government requiring the support of cross-bench independents. If the Shipping Legislation Amendment Bill is enacted, it will be easier for container vessels operated by international shipping lines to carry domestic containerised freight between Australian ports than under the current law.
Listed highlights of the proposed terminal include:
- $20m staged development of Burnie to handle international container ships;
- Reducing containerised freight costs to key destinations by more than 40%;
- Target start date of January 2017;
- A two-year memorandum of understanding with Tasports to develop the venture.
DP World says it has entered into an exclusive agreement with Tasports, under which the two parties will work together to provide an international container terminal.
Chief corporate development officer at DP World Australia, Brian Gillespie, said he believed the time was right for such a facility.
“The proposed changes in the [the law] will make it attractive for international container shipping lines to call at Tasmania if suitable facilities exist,” Gillespie said.
Tasports chief executive Paul Weedon welcomed the DP World commitment.
“The proposed enhancement will not only increase capacity at the port but will provide new options for the Tasmanian import and export industry to access the world’s major markets,” Weedon said.
Tasports’ recently delivered a 30 Year Port Plan identifying Burnie as the state’s future largest natural gateway for container freight.
Gillespie said allowing access to regular international container services would significantly reduce shipping costs containerised freight.
“On our estimates, the cost of shipping a 20-foot container from Tasmania to Shanghai would reduce from around $2800 to around $1350,” he said.
“The costs of freight to domestic locations such as Sydney and Brisbane would attract similar tariff reductions which would be a substantial boost for Tasmanian producers.”
Gillespie said the Port of Burnie had been chosen as the most suitable for providing such facilities.
“As a coastal sea port with supporting infrastructure, we believe Burnie is the best option for a new facility to be able to cater for large ships in the decades ahead,” he said.
“Due to the foresight of Tasports, TasRail and Toll, Burnie is also directly connected to an intermodal rail facility which will allow containerised freight to be railed safely and efficiently to Launceston and Hobart.”
Weedon said Tasports would work with DP World Australia to identify key infrastructure needs such as channels, berth capacity and enhancements to navigational aids and technology.
“Once fully developed, the new container terminal is planned to handle the equivalent of 200,000 TEU per annum,” he said.
DP World Australia’s investment would include:
- Refurbishing the existing ship-to-shore crane
- Providing an additional ship-to-shore crane
- Developing the container yard for general and refrigerated containers
- Integrating the yard with the existing rail terminal
- Providing yard container handling equipment
“We will also be recruiting a new workforce with 40 new positions required at launch with the workforce growing to over 60 in a few years,” Gillespie said.
If implemented, the DP World plan would be another step towards revitalising international shipping links into Tasmania, something that got a boost via the recent Swire announcement of a new Hobart service.
This article originally appeared in Rail Express affiliate Lloyd’s List Australia.