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| There is no doubt that the last two years have been challenging for everyone in the supply chain. Here at the Port of Melbourne we've worked closely with port users and tenants to meet the challenges of COVID-19 head-on. Compared with many international ports Melbourne has been resilient, adapting to the needs of the economy despite COVID-related staff shortages and surges in trade demand.
As we look forward, it's clear there is much to learn from the vulnerabilities that the pandemic has exposed in our global supply chain. It's time for all parts of the supply chain – ports, road and rail - along with government, to take a more coordinated approach to building resilience and strengthening the end-to-end system. The Port of Melbourne addressed this in our recent submission to the Productivity Commission's Inquiry into the Maritime Logistics System (which you can find on our website here).
Since our last Industry Update we've announced the commencement of the Webb Dock East Extension project, restoring the capacity to its intended two-berth design. This is just one of the projects in our 30-year Port Development Strategy, which will see us continue to invest in the supply chain infrastructure to ensure we meet trade demand into the future.
Please don't hesitate to get in touch with us if you'd like further information – contact details can be found at the end of this Update.
Best regards
Saul Cannon
Chief Executive Officer | | | | |
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| Port of Melbourne Industry Consultation | | | Port of Melbourne regularly engages with port users and wider stakeholders. Our annual Industry Consultation is an opportunity for all our supply chain and industry stakeholders to hear about our latest updates across port operations, current and planned projects and pricing and regulatory matters. It is also important for Port of Melbourne to receive feedback from industry, and where appropriate, help shape future decisions. We have released an Industry Consultation paper to guide our FY22-23 Tariff Compliance Statement discussions – you can find a copy here.
A reminder that submissions addressing topics raised in the consultation, or any other port-related matters are welcome up to 8 April 2022 and can be sent to rts@portofmelbourne.com.
There is also an open invitation for one-on-one meetings with the PoM team for any industry stakeholder. To arrange a meeting please contact Rebecca McLellan on 0417 608 512 or email rts@portofmelbourne.com | | | | | | | |
| | | Global demand for shipping capacity remains high. While there was some easing in congestion for major international ports following the Lunar New Year, industry continues to monitor inflation and the potential supply chain impacts with China's zero Covid-19 policy.
Ports continue to see shipping lines revising schedules and changing rotations in an attempt to recover time. Locally, the impacts of congestion and landside dwell time for imported containers continues to place pressure on the supply chain. | | | | | |
| | | The productivity of Australia's ports is in the spotlight with the Productivity Commission's Inquiry into Australia's Maritime Logistics System currently underway. Port of Melbourne has made a submission to the Inquiry, which you can read here. The Productivity Commission expects to release a draft report for industry consultation in May this year.
Our initial submission includes recommendations for how supply chain participants can build resilience and strengthen the end-to-end system. We canvass the need for stronger long-term alignment on infrastructure investment across transport modes as well as within the port gates – what infrastructure is required and when - given the long lead times involved in most supply chain infrastructure. | | | | | | | |
| Facts about productivity at the Port of Melbourne: - Since 2017 the Port of Melbourne has increased the effective ship rate (containers moved per ship per hour) by 23% (BITRE, 2021).
- Port of Melbourne currently has an effective ship rate that is 27% more efficient than the next best Australian port (BITRE, 2021).
- Port of Melbourne's container terminal productivity is 25 per cent to 50 per cent (TEU/metre of quay line) more efficient than regional averages for global terminal operators, driven by higher investments in berth infrastructure providing up to 25 per cent more quay cranes per metre of quay line, and operational practices achieving higher quay crane productivities of between 25 per cent and 55 per cent (TEU/Quay Crane) (Drewery, 2021).
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| Port Infrastructure Update | | | | | |
| Port Rail Transformation Project/Coode Road (Port Development Strategy - Project 2) | | | | | |
| | | Anyone passing the Port Trail Transformation Project (PRTP) site along Footscray Road will see significant progress across numerous work fronts over the last few months.
Installation of services, such as power, water and telecommunications have been underway. Foundation works to raise the terminal and create the wall to delineate the road are far advanced.
But the works haven't been without challenges, with the project team having to implement COVID safety measures as well.
"We're focused on delivering the best outcome for the project and we're working hard to meet our timeframes for completion in 2023," said Matthew Brooks, Senior Project Manager – Port Rail. | | | | | | |
| As part of these works, a section of Coode Road, between Dock Link Road and Phillipps Road, is planned to close in 2022 to make way for the new rail terminal.
A new road to facilitate an uninterrupted connection for movement of containers between the rail terminal and the wider Swanson Dock precinct will also be constructed. More information on road disruptions will be provided when details are confirmed.
The $125 million PRTP involves the development and construction of a new rail terminal interfacing with the Swanson Dock East International Container Terminal. The rail terminal will have two new sidings that can handle 600 linear meter long trains, and siding upgrades with a link to Swanson and Appleton docks. | | | | | | | |
| Webb Dock East 4/5 Extension (Port Development Strategy - Project 3) | | | Construction works are getting underway at Webb Dock East to reduce port congestion, improve efficiency and accommodate larger ships.
The project involves demolishing a redundant section of concrete and extending the quay line by 71 metres, restoring Webb Dock East's intended design capacity to a two-berth terminal. The contract for the works has been awarded to Fitzgerald Constructions Australia, with completion scheduled for Q3, CY2023.
A video explaining the project can viewed here. | | | | | |
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| Port of Melbourne CEO Saul Cannon made the construction announcement at Webb Dock East in early March, and was joined by CEO of VICT, Tim Vancampen and Managing Director of ANL, Shane Walden. VICT is also investing in additional infrastructure to support its customers.
Mr Cannon said the project is an important part of a 30-year investment strategy, designed to create a more efficient and productive port that helps to strengthen Victoria's economy. "Now more than ever, we need to make sure we get essential goods delivered to hospitals, businesses, schools and homes."
"We are seeing a rising number of larger vessels calling at the port and our current infrastructure at Webb Dock East at times does not allow for two ships to berth at the same time. For example, this project will enable two larger vessels to berth at the same time at this part of the port, reducing wait times for the ships to dock," he said. | | | | | |
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| This video explains the project and why its important to the industry, and the wider community. | | | | | |
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