Australia: The earliest possible development of Webb Dock East as a container terminal is essential if the forecast container growth in Melbourne is to be handled efficiently and productively, according to Llew Russell, CEO of Shipping Australia.
Shipping Australia members are involved in over 80 per cent of the international container trade in Melbourne.
This was the clear conclusion reached in the SAL submission sent to the Port of Melbourne Corporation in late September on the market sounding discussion paper regarding additional container capacity in the port of Melbourne.
"In SAL's view the basic issue is not whether additional capacity is required but rather when that capacity is required and the relative impact that such additional capacity will have on the future of container stevedoring in Australia, not only in the short to medium term but in the long term," he said.
Shipping Australia does not agree with the Asciano publicly expressed view to instead maximise the capacity and utilisation of the Swanson Dock precinct and either fast track the development of the port of Hastings or develop an international container terminal at the port of Geelong.
"It is stated by Asciano that the Port of Melbourne Corporation has put forward a plan to provide for this additional capacity requirement through a AU$1.3 billion (US$1.24 billion) redevelopment of Webb Dock, possibly as early as 2013. There is no backing or justification for this figure and in SAL's view it is a substantial overestimate of the costs involved.
"If permission was given tomorrow, it would take a minimum of seven years to develop the port of Hastings at a much greater cost than that suggested by Asciano for the redevelopment of Webb Dock East.
With the projected growth in demand, there will also clearly be a need to develop Swanson Dock capacity but this does not negate the necessity of, by 2014, developing a new container terminal at Webb Dock East and to ensure there is the potential to scale up sufficient capacity to meet anticipated demand, according to SAL.
"By 2014, there will be sufficient demand to support a third stevedore which will bring a much needed competitive push in terms of productivity and innovation in the port. In addition, with Australia wide stevedoring contracts it is essential that Melbourne joins Sydney and Brisbane in providing for a third container stevedore by that time," Mr Russell said.
The Asciano submission refers to community concerns being many and varied and covering such matters as traffic congestion, environmental issues and aesthetic concerns. In relation to social, safety and environmental impacts, SAL is of the view that Webb Dock East has the advantage of being removed from light spillage and noise. As far as unsightly cranes are concerned, the large pure car carriers that occupy the berth at Webb Dock East would seem to 'already occupy that space'. "In terms of integration with the rest of the freight transport system the development of a terminal at Webb Dock East would be fully integrated with the exception of the rail issue. In its submission SAL supported an empty container park being located at Webb Dock East either operated by the new terminal container operator or by a third party.
An integral part of consideration of developing a container terminal at Webb Dock East is the redeployment of the motor vehicle industry, which is currently occupying areas in Webb Dock East.
"Shipping Australia will shortly be making a submission on the Port of Melbourne Corporation's discussion paper entitled 'Webb Dock West, Automotive development, Industry Engagement," he said.
