The Port Capacity Project

Stephen BradfordChief Executive Officer

Port of Melbourne Corporation

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AusIntermodal – 30 October 2012

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The Port of Melbourne – an overview

Australasia’s largest container and general cargo port

Handles almost 2.6 million containers annually

Primarily a container port – 72% of our business

Ranked around #50 in the world

36% of national container trade

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Trade update – financial year to 30 June

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Total trade 9.1% - record 87 million revenue tonnes

Total container trade 7.8% - record 2.58 million TEU

Full container exports 9.8%

Full container imports 7.1%

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Trade – year to date

Actual figures to 30 September

- total trade up 0.2%

- container throughput down 1.7%

- full container imports down 3.5%

- full container exports down 2.3%

- dry bulk down 4.9%

- liquid bulk up 9.3%

- motor vehicles up 7.5%

Preliminary figures for October

- “too early to call”4

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Competitive strengths

• Victoria is the second largest state economy

• Gross State Product of

$305 billion in 2010-11

• Main industries include:

- Automotive production

- Manufacturing

- Food processing

- Agriculture

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Trade growth milestones

- Handled 1 million containers in 1997

(average of 2740 containers a day)

- Handled 2 million containers in 2007

(average of 5480 containers a day)

- Now handle over 2.5 million containers

(average of 7000 containers a day)

Growing trade has implications for

infrastructure / transport connections

Container throughput has

increased over 150% since 1997

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Future trade growth - containers

2025 = 5.5 million TEU

2012 = 2.6 million TEU

2007 = 2 million TEU

1997 = 1 million TEU

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Trade hub for south-eastern Australia

Not just a port for Melbourne

Trade hub for SE Australia

Dedicated offices in:

- Tasmania

- South Australia / Sunraysia

- Regional New South Wales

Working with other parts of the

supply chain

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Burnie

Wagga Wagga

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Melbourne‟s future freight task

Timeline guide…

2015 2020 2025

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Melbourne to handle 4.5 to 5.5 million TEU

HastingsPort Capacity Project

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Expanding Melbourne‟s container capacity

• Port Capacity Project

• 1 million TEU

• Biggest landside port

project in a generation

• Webb Dock

• Swanson Dock

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Project details

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$1.6 billion development

- $900m by PoMC

- $700m by terminal operators

Opportunity for innovation

Links directly to the M1

Buffering works to protect

local community amenity

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Conceptual design

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Road connections

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Commercial considerations

Competitive bidding process

Focus on:

- innovation

- productivity

- efficiency

- traffic management

Tenders awarded for:

- civil engineering - Aurecon Australia Pty Limited

- maritime Design & Construct - Arup Pty Limited

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Expressions of Interest (Operators)

Pre-Delivery

Inspection Services

Webb Dock

Automotive Terminal

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Webb Dock

- International Container

Terminal

- Empty Container Park

EOI closes

5 December 2012

EOI closes

14 November 2012

EOI closes

31 October 2012

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Expressions of Interest (Construction works)

Maritime works package

(Design & Construct)

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Roads & services

package

Includes:

- wharf construction

- dredging within Webb Dock

Includes:

- new M1 connections

- extensive buffer works,

demonstrating „Port-City‟ vision

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Timeline

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Future trade growth – new motor vehicles

Government announcement

to consolidate automotive

trade in Melbourne

356,000 new motor vehicles

handled in 2011-12

Forecast growth to 1 million

new motor vehicles p.a.

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Expanding Melbourne‟s automotive capacity

At least 18 hectares of

dedicated on-dock pre-

delivery inspection facilities

Capacity to handle at least

1 million new motor vehicles annually

Additional shipping berths at

Webb Dock West

Approx. 920 metres of

continuous quayline

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Streamlining delivery to dealerships

Less than 25% of imported motor vehicles are delivered direct

from dock to dealership

76% of new vehicles have to be transported by truck across the

West Gate Bridge to other locations where they are prepared

for delivery

More than a third of this amount then travel by truck back

across the West Gate Bridge to dealers located in the east of

Melbourne

60% of all imported cars go to dealerships in Melbourne‟s

eastern suburbs

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Communications and engagement

Extensive interaction with

local councils and

community groups

Establishment of a Project

Liaison Group – Chaired

by Mr Terry Laidler

Welcomed by industry

Limited community

resistance

Different project to CDP

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For more information,

please visit www.portofmelbourne.com

Thank you

An invitation for questions