Moorebank intermodal gets praise, and condemnation

The federal government’s opening of the tender process for the Moorebank Intermodal Terminal (as reported on Transport and Logistics News) has drawn praise from the rail industry, but also attracted criticism for its questionable numbers.

Rail industry

The Australasian Railway Association welcomed the federal government’s calling for registrations of interest into the development and operation of the Moorebank Intermodal Terminal.

“This project alone will remove significant numbers of trucks from Sydney’s roads, reduce the cost of transporting goods and create further export opportunities,” said Australasian Railway Association (ARA) CEO Bryan Nye.

“The market failure of our supply chains that has resulted in more and more trucks blocking up local Sydney’s roads, particularly around Port Botany, is being somewhat rectified by this project, which will generate economic and environmental benefits long into the future.”

The project involves construction of a port shuttle to take containers direct from the Port of Botany by rail to the Moorebank facility, where they are then loaded onto local or interstate rail as well as trucks. This effectively improves efficiencies and reduces costs along the entire supply chain, from the port to the final destination and vice versa.

“Well-run intermodal terminals create advantages of scale that allow rail to demonstrate its substantial competitive advantages over other forms of freight transport,” Mr Nye added.

All around the world, governments and the private sector are realising that taking the time to properly plan and design supply chains that utilise rail’s inherent economies of scale is well worth the investment, and the Moorebank Intermodal Terminal is certainly a good example of that.

The terminal will directly lead to 3,300 fewer trucks travelling on Sydney’s roads each and every day, creating countless benefits to local communities.

“This project is a clear example of government’s use of alternate funding mechanisms to build infrastructure that have a net positive economic benefit,” Mr Nye continued

“In a tightening fiscal climate, finding innovative ways to remove bottlenecks to economic productivity will be increasingly important, and we certainly welcome projects such as this as a big step along the way.”

Do the numbers add up?

Long-time Newcastle container terminal and Eastern Creek intermodal campaigner Greg Cameron has questioned the numbers behind the Moorebank terminal.

“The Australian government’s Moorebank intermodal terminal will have 1.2m TEU IMEX capacity,” Mr Cameron said. “Port Botany container movements are predicted to increase from 2M TEU in 2012 to 3.2M TEU before 2020.

“’The terminal is due to commence operations in late 2017 and will be Sydney’s major rail freight solution for decades to come,’ according to Mr Albanese.

“Surely Mr Albanese’s statement means that Moorebank will only handle the growth in TEU movements between 2012 and 2020, and that over this period, 1.7M TEU or 85% will continue to be moved by truck!

“When will the Eastern Creek intermodal terminal be built? If not by 2020, how are the additional containers to be handled?”

Mr Cameron also questioned the NSW government’s commitment to efficient container movements.

“Shipping containers are the standard form of distribution for goods worldwide,” Mr Cameron said.

“It is irrational for there to be no container terminal at the port of Newcastle and it is irresponsible to use the vacant container terminal site for other purposes, as the New South Wales government now intends.

“NSW Premier the Hon Barry O’Farrell MP is unable to explain how the state’s productivity is enhanced by using Port Botany container terminal instead of Newcastle to service the import and export needs of northern NSW.

“The NSW government’s policy to prevent a container terminal at Newcastle is without justification.

“Modern container terminals are served by railways, which transport the containers to intermodal terminals, where they are lifted onto trucks for short distance haulage to warehouses and factories. They are returned overseas the same way.

“Newcastle’s lack of a container terminal requires imports and exports for northern NSW to be transported by truck, between Newcastle and Port Botany.

“With a container terminal at Newcastle, the immediate benefits are lower transport costs and saved time. More importantly, economic growth in northern NSW would increase because a container port drives new supply chains, markets and infrastructure. Road congestion and air pollution in Sydney would be lower.

“The NSW government’s long-term plan to rail containers between Port Botany and Newcastle is ridiculous when a container terminal can operate at Newcastle.

“The government plans to reserve a corridor for building an outer western Sydney freight rail by-pass. The route would include Eastern Creek, where an intermodal terminal would be built. The government plans to build a dedicated freight rail line between Eastern Creek and Villawood to complete the freight rail line from Port Botany.

“Port Botany container movements are predicted to steadily grow from 2 million TEU in 2012 to 7 million TEU in 2030.

“The Australian government’s proposed Moorebank intermodal terminal, in southwest Sydney, will handle just 1.2 million TEU. The Moorebank intermodal terminal would be full as soon as it was completed, around 2017. There would be no change in the number of containers moved by truck compared with 2012. An intermodal terminal at Eastern Creek is required from 2017.

“By 2030, when container movements are 7 million TEU, about 70% would be railed to Eastern Creek intermodal terminal.

“By eliminating the sea journey between Newcastle and Port Botany, a container terminal at Newcastle would enable containers to be railed between the port and Eastern Creek faster than from Port Botany. The difference in cost, due to distance, would be trivial.

“Instead, the NSW government is providing a 99-year monopoly to the ‘NSW Ports Consortium’, the company purchasing the lease to Port Botany container terminal.

“No NSW politician speaks in favour of the Port Botany monopoly.

“All politicians are silent, because the monopoly disadvantages northern NSW and diminishes productivity in NSW,” Mr Cameron said.

Source: http://www.tandlnews.com.au/