PORT OF MELBOURNE PORT CAPACITY ENHANCEMENT PROGRAM (PCEP) STAGE ONE COMPLETION & FEEDBACK

Monday, September 25, 2023

Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have received an extensive reply from Port of Melbourne (PoM) in relation to the submission lodged by FTA/APSA in response to feedback requested on the Port Capacity, Ship Fleet and Trade Demand forecast reports as key drivers of the Port Capacity Enhancement Program (PCEP). 

The letter of reply received from PoM was largely appreciative of the insights and the level of detail provided by the FTA/APSA submission taking into account extensive member feedback.
The comprehensive PoM letter of reply is available HERE, where key feedback on additional areas for consideration were acknowledged and highlighted by PoM as per the follow extract:


Trade and ship fleet forecasts
Thank you for your insights and the level of detail provided in your submission, in relation to the forecast reports, as noted above. Your recommendation to collaborate with stakeholders, using data and forecasts to inform, and address complex future capacity and the need for infrastructure, resonates with PoM.
While we are in the feasibility phase of PCEP and will be for some time, to ensure due diligence and as part of our continuous steps to gather data and inputs to our planning for PCEP, we will in the future undertake work to understand heavy vehicle movements. We understand there is an important body of work to come in understanding the road and rail network.
Other Considerations
In addition to the detail you provided regarding our forecast reports, we thank you for calling out other considerations including:

  • Rail – the Victorian Auditor Generals concerns regarding the Victorian Government achieving a target of 30% container movements on rail by 2050;
  • External threats – delays and inefficiencies, the option of land-bridging via rail to/from Darwin;
  • Service improvements – FTA / APSA members expressing a strong desire for improved service outcomes including enhanced efficiency, reduced congestion, optimised logistics and related benefits including competitiveness for those reliant on port services; and
  • Costs – members concern relating to quayside and terminal access charges, container detention and cost accountability noting the NSW legislation via the Port Botany Landside Improvement Strategy.

Next Steps
PoM have now published the PCEP Stage One Engagement Summary Report and final versions of the forecast reports by subject matter experts Black Quay, Deloitte and GHD. These documents are available on the PCEP webpage HERE and as follows: 

Stage Two of PCEP will include the development of a draft Cost Benefit Analysis (CBA) and subsequently, future delivery of a Stage Two engagement program. 
FTA/APSA will updated members regarding Stage Two activity once released by PoM, and we will seek to gain your insights and views.

The original FTA/APSA submission is available HERE.


Tom Jensen - Head of International Freight & Logistics - FTA / APSA