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SYDNEY PORTS CORPOR ATION

Port Freight Logistics Plan


A framework to improve road and rail per formance at Por t Botany
June 2008
Sydney Ports Corporation

Contents

1. Introduction 3
2. Existing container freight operations 4
2.1. Portside freight operations
2.2. Landside freight operations
Road
Rail
Intermodal terminals
2.3. Future challenges
Areas for improvement
Consistency with best practice
3. Maximising the use of rail infrastructure in servicing the port 11
3.1. Enhancing rail access and operations at Port Botany
Port Botany container terminals
Botany Yard
Port Botany Freight Line
3.2. Upgrading rail freight corridors in metropolitan Sydney
3.3. Intermodal terminal development to support rail movements
4. Minimising truck movements in servicing the port 16
4.1. Optimising road operations at Port Botany
Encouraging truck movements away from peak periods
Introduction of high efficiency container trucks in Port Botany
Road enhancements in Port Botany
Operating hours of port logistics industries
4.2. Increasing truck efficiency to minimise road movements
Higher Mass Limits (HMLs)
Mechanisms to support better truck scheduling and utilisation
4.3. Expanding road freight corridors in metropolitan Sydney
5. Implementation program 21
5.1. Consultation
5.2. Deliverable milestones
5.3. Reforming Port Botany’s links with inland transport – IPART
5.4. Efficiency indicators

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Sydney Ports Corporation

Introduction

Sydney Ports Corporation is a State-owned corporation with a mandate


for managing port activities at Port Botany and Sydney Harbour, and a key
stakeholder in facilitating the efficient landside movement of containers
and general cargo.

The Port Freight Logistics Plan represents a framework The Port Freight Logistics Plan also fulfils the
by Sydney Ports Corporation for improvements to development consent conditions of the Port Botany
landside logistics to meet the challenges of managing Expansion, as shown in Table 7 on page 27. This
port activities in light of anticipated demand. The project will support the growth in container volumes
Plan discusses existing port operations, initiatives to by providing an additional five berths and 60 hectares
maximise the use of rail, and initiatives to minimise of container terminal area. The expanded container
the impact of truck movements generated by the port. terminal area will also have dedicated road and
The successful implementation of the Plan will require rail access.
ongoing facilitation with a number of industry and
government stakeholders. Sydney Ports believes that
the matters and issues discussed in the Plan will assist
in improving port freight logistics to the benefit of the
port, industry and the community.

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Sydney Ports Corporation

2. Existing container freight operations

About 98 per cent of Australia’s international trade is undertaken by


sea and provision of adequate port facilities and associated landside
logistics is vital for the continued growth of the NSW economy.
Sydney’s sea ports are a focal point of a network of 2.2. Landside freight operations
sea, road and rail links connecting the importers and
An efficient transport system in a capital city such as
exporters of NSW with international markets. Growth in
Sydney depends on the effective integration of the
container trade is strongly linked to economic growth.
various components within the transport chain. The
While there are a number of predictions for container
port’s area of influence and involvement therefore
growth, the annual growth rates for Sydney’s container
extends beyond the traditional confines of the maritime
trade are predicted by Sydney Ports to be between 4.8
activities and port operations and into the area of
per cent and 5.6 per cent per year for the next 20 years.
landside logistics and supply chains. Sydney is a heavily
Port Botany’s container trade is forecast to increase
import dominant port. For every two containers that
from around 1.6 million TEUs (twenty-foot equivalent
arrive with cargo, one returns overseas empty. The
units) per year to more than 3 million TEUs per year
export trade is split between regional product and
by 2025.
metropolitan manufactured goods. The inbound supply
Sydney’s sea ports constitute a significant asset, handling chain for containers is almost exclusively restricted to
in excess of $50 billion worth of trade per year. Around the Sydney metropolitan area, with containers being
45 per cent of the cargo by volume and 80 per cent by unpacked in warehouses across the city. However,
value handled through Sydney’s sea ports is containerised there are four concentrated areas for industrial
cargo. Containers carry a broad range of primary products, distribution within the metropolitan area: Port Botany,
manufactured items and consumer goods which are inner and middle west, south west and far west.
distributed widely within metropolitan Sydney. More
The logistics chain for the transfer of container cargo
than 97 per cent of this volume is handled at Port Botany
through the port is shown in Figure 1. It operates in
and over 85 per cent of these are containers packed or
two ways:
unpacked within the greater metropolitan area of Sydney.
Due to its proximity to the Sydney market, Port Botany is • Road based – where containers are transported directly
and will remain the primary port for the import and export by truck to importers warehouses and distribution
of containerised cargo in NSW. centres for unloading. Containers are returned, via
an empty container park, to the port empty or sent
to another warehouse for packing with export goods
2.1. Portside freight operations and transported to the port for shipment off-shore.
The portside freight operations consider the • Road and rail based – where containers are
arrangements in place to unload and load containers transported by rail to intermodal terminals close to
from a vessel that arrives at the port. At Port Botany, the market being served and unloaded for transport
there are two container terminals where the initial by truck to warehousing and distribution areas within
storage of containers and the initial transfer of that market area. This process reduces the truck
containers by road or rail are currently undertaken, at distance involved and will improve the reliability in
Brotherson Dock North and Brotherson Dock South by delivery times. Empty containers can make the return
two stevedoring companies: DP World (formerly P&O journey via the intermodal terminals, or be sent to
Ports) and Patrick (owned by Asciano). The expansion exporter’s warehouses for packing with export goods
of Port Botany will create a third container terminal. and returned to the port via the intermodal terminal.

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Sydney Ports Corporation

2. Existing container freight operations

Figure 1: Logistics chain for road and rail based transfer of containers
Transport chain using direct road movement

ROAD MOVEMENT
IMPORTER/EXPORTER PORT & STEVEDORING OPERATIONS

ROAD MOVEMENT WAREHOUSE

Transport chain using intermodal terminal

INTERMODAL TERMINAL
PORT & STEVEDORING OPERATIONS RAIL MOVEMENT

IMPORTER/EXPORTER ROAD MOVEMENT WAREHOUSE

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Sydney Ports Corporation

2. Existing container freight operations

Road Rail
Sydney is supported by a motorway system that A dedicated rail freight line exists between Port Botany
forms an orbital network within the metropolitan areas and Enfield/Chullora, a distance of approximately 20
(Figure 2). This network provides direct linkages to kilometres. There is also a freight rail link to the port
industrial areas, warehousing and port related areas at White Bay which joins the main Port Botany Freight
at Port Botany, inner and middle west, south west Line at Wardell Junction in Marrickville (Figure 2).
and west of Sydney. The orbital network includes the
A freight line extension to the south west exists from
following roads:
Chullora to Sefton Junction (about 2.5 kilometres).
• M1 Motorway from Sydney Airport to Sydney CBD. From Sefton Junction to Macarthur, freight trains
• M2 Motorway and Lane Cove Tunnel from Seven traverse and share the passenger network on the
Hills to Gore Hill Freeway. Main South Line. The Australian Rail Track Corporation
• M4 Motorway from Penrith to Strathfield. received planning approval in December 2006 to
provide a freight line along the existing rail corridor
• M5 Motorway from Campbelltown to Sydney
between Sefton Junction and Macarthur. This project
Airport.
is expected to be completed by 2009.
• M7 Motorway from Liverpool to Pennant Hills
(crossing the M4 Motorway). A further freight line extension to the north runs from
Chullora to Flemington Junction, Strathfield and North
• Cross City Tunnel linking the City West Link to the
Strathfield (about five kilometres), where freight trains
M1 Motorway.
then use the passenger network on the Main North
There is direct road access at Port Botany to the Line to Hornsby via Epping.
Sydney orbital network via Foreshore Road (the main
Freight trains travelling from Enfield/Chullora to the
port access road). Over three-quarters of containers
west share the passenger rail network on the Main
are transported to and from the port by road by over
West Line from Lidcombe to Penrith.
200 road transport carriers.
Along the metropolitan rail corridors where freight
trains share the network with passenger trains,
priority is given to passenger services. This represents
a significant constraint to rail freight efficiency,
particularly during the peak commuter hours and when
curfews prevent any activities by freight trains on the
metropolitan rail network.

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Sydney Ports Corporation

2. Existing container freight operations

Figure 2: Metropolitan road and rail links

February 2008

Motorways Intermodal Terminals

Main roads Industrial zones

Dedicated freight rail lines Port facilities

Shared passenger/freight rail lines Enfield Intermodal Logistics Centre (planned)

Dedicated passenger rail lines Moorebank Intermodal Terminal (proposed)

Southern Sydney Freight Line (planned) Port Botany development area

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Sydney Ports Corporation

2. Existing container freight operations

The Botany to Enfield freight line is linked to • Patrick PortLink, Southern&Silverton and
operational sidings in Port Botany on the Patrick Independent Rail are servicing clients in the Central
container terminal, DP World container terminal and West, including Bathurst, Blayney, Dubbo, Warren
the P&O Trans Australia container park. The port is and Forbes.
serviced by a number of rail operators: • Patrick PortLink, Southern&Silverton and
• Macarthur Intermodal Shipping Terminal at Minto Independent Rail are servicing clients in the North
is using Independent Rail as its train provider for its West, including Narrabri, Wee Waa and Moree.
Port Botany shuttle.
Sydney Ports and the NSW Government have
• Mannway Intermodal Terminal at Villawood have identified the need to increase the proportion of
appointed Southern&Silverton as their rail operator containers transported by rail to and from Port Botany
for Port Botany shuttles. from the current mode share of 20 per cent to a rail
• Maritime Container Services at Cooks River uses mode share to 40 per cent.
Independent Rail as its rail operator for Port Botany
shuttles. Intermodal terminals
• Camellia Intermodal Terminal is using Patrick A number of intermodal terminals are located within
PortLink as its train provider for its rail shuttles. the Sydney metropolitan area. These are primarily
• Yennora Intermodal Terminal is using Patrick located in close proximity to areas of concentrated
PortLink and InterLink (QR National) as its train industrial distribution. These intermodal terminals
provider for its rail shuttles. service the port or function as a transfer point
• Australian Railway Group (QR National) is operating for interstate cargoes. Further information on the
the Manildra Group’s Manildra and Nowra rail intermodal terminals in Sydney is provided in
services. Table 1.

Table 1: Intermodal terminals in Sydney

Location Users Siding length Estimated capacity


Camellia Patrick PortLink 300 metres 80,000 TEU

Chullora Pacific National 680 metres 300,000 TEU


(interstate operations only)

Cooks River Maritime Container Services 500 metres 150,000 TEU

Villawood Mannway 350 metres 20,000 TEU

Minto Macarthur Intermodal Shipping Terminal 390 metres 45,000 TEU

Yennora Patrick PortLink/QR National 500 metres 50,000 TEU


Note: Terminal capacity is limited in some cases by the availability of freight train paths.

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Sydney Ports Corporation

2. Existing container freight operations

2.3. Future challenges Areas for improvement


The existing road and rail freight networks have A key objective of the Port Freight Logistics Plan is
generally been able to efficiently handle the freight to identify areas for improvement in the efficiency
task. However, there are a number of indicators that of container movements and rail interfacing through
suggest supporting the future freight task will pose operational, technological or administrative changes.
significant challenges: Further details on possible improvements in the
• The volume of road general freight in Australia is efficiency of container movements and rail interfacing
forecast to double over the next 20 years. are outlined in Sections 3 and 4. An implementation
program in achieving these improvements with the
• Container volumes at Port Botany are anticipated involvement of government and industry is outlined in
to increase from 1.62 million in 2006/07 to over Section 5.
3 million within 20 years.
• Continued growth in population and economic One area where improvements can be made for
activity also means that increases in freight landside logistics relate to operational changes.
movements are inevitable. These consider commercial and non-commercial
arrangements that can enhance the practices by each
The Metropolitan Strategy, released by the NSW stakeholder or across a number of stakeholders within
Government in December 2005, provides a strategic the supply chain. The changes can have an impact
response to these trends and the identification of on efficient container movement and rail interfacing
a possible future freight network for metropolitan by encouraging practices that support better truck
Sydney. The task of Sydney Ports, other government utilisation or increase the viability of train services
agencies, professionals and industry involved in by using mechanisms that influence the price and
logistics planning is to use this direction to develop allocation of transport movements for freight.
a series of outcomes that can be achieved in the
short, medium and long term. This will require Technological changes are another area where
close collaboration between all stakeholders. The landside logistics improvements are possible.
Port Botany Logistics Taskforce established by the Technological changes consider the use of electronic
NSW Government is a forum where collaboration methods to streamline or improve operations by each
on a number of logistics issues is being undertaken stakeholder or across a number of stakeholders within
between government and industry. the supply chain. These changes can have an impact
on efficient container movement and rail interfacing
by allowing for the introduction of tools that allow for
real savings in labour and resource utilisation, thereby
allowing for greater efficiencies in the movement of
freight into and out of the port.

Administrative changes can also provide improvements


to the management of logistics at the port. These
changes consider the role of institutions, frameworks,
practices and procedures that support the needs of
each stakeholder or across a number of players within
the supply chain. The changes can have an impact
on efficient container movement and rail interfacing
by allowing for richer information flows, improved
co-ordination and better co-operation within one
element of the supply chain or amongst a number of
stakeholders across the supply chain.

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Sydney Ports Corporation

2. Existing container freight operations

Consistency with best practice landside logistics management – Port of Melbourne,


Sydney Ports closely monitors the performance Port of Yokohama, Port of Los Angeles and Port of
of Australian and international ports in relation to Rotterdam. A number of initiatives in relation to road
landside logistics operation and management. This is and rail in the ports at these locations are consistent
an important element in benchmarking our strategic with the outcomes being sought by Sydney Ports
and operational outcomes achieved over a defined and the NSW Government. These include additional
period. The key areas of interest for Sydney Ports are rail infrastructure to provide new access or enhance
investigating methods in improving road transport existing operations, trucks that can handle a greater
movements and management, and understanding number of containers per vehicle, and mechanisms to
identifying ways in increasing the mode share towards encourage truck movements away from peak periods.
rail that can support the efficient movement of port
related containers within metropolitan Sydney and
regional New South Wales.

It is important that the Port Freight Logistics Plan


is informed by leading examples by other container
ports to ensure that best practice in relation to
freight logistics is being achieved. Table 2 outlines
a range of ports in Australia, Asia, North America
and Europe that have been examined in relation to

Table 2: Landside logistics improvements in Australian and international ports

Landside logistics improvements


Port location
Rail Road
• Target to increase rail mode share • ‘Higher Efficiency Container Trucks’ with
to 30 per cent additional container capacity per vehicle
Port of Melbourne
• Dynon Port Rail Link to provide rail and measurable operational efficiencies to
Australia
access to container terminals be introduced within an extended area at
the port

Port of Yokohama • Provision for direct rail access to


Japan selected container terminal

• Completion of Alameda Corridor with • ‘PierPass’ charging regime to discourage


Port of Los Angeles
high speed rail access between port truck movements at port during peak
United States of America
and industrial areas periods

• Expanding rail capacity and removing • Encouraging staggered transport


Port of Rotterdam operational limitations throughout the day
Netherlands • Introduction of larger trucks
(up to 3 TEU capacity)

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Sydney Ports Corporation

3. Maximising the use of rail


infrastructure in servicing the port

A key element in logistics planning for metropolitan Sydney is


maximising the use of rail. The ability of this mode to transport large
volumes offers industry a transport mode that has a higher level of
efficiency, competitive usage costs, reduced environmental impacts
and less road congestion.
The volumes transported by rail to and from Port rail simulation model as a tool to test the suitability
Botany have increased from 123,000 in 1997/98 of various scenarios in meeting the rail mode share
to 300,000 in 2006/07, and currently represents target. A number of initiatives have been identified to
20 per cent of all containers transported to and increase the role of rail in meeting the freight task for
from the port (Figure 3). These volumes include metropolitan Sydney. In supporting these initiatives,
export products from regional NSW, and port the key is to encourage market forces to drive the
shuttle movements of exports and imports within modal shift towards rail in a sustainable manner.
metropolitan Sydney. This requires clear policy and investment in certain
network infrastructure to provide the platform for rail
The NSW Government and Sydney Ports has a
to compete efficiently.
shared objective of achieving a 40 per cent rail mode
share for containers that are transported into and
out of Port Botany. Sydney Ports has developed a

Figure 3: Port Botany rail volumes (1997/98 to 2007/08)

350

300

250
FORECAST

200
TEUs (’000)

150

100

50

0
1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2005/06 2007/08

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Sydney Ports Corporation

3. Maximising the use of rail infrastructure in servicing the port

3.1. Enhancing rail access and Botany yard


operations at Port Botany Botany Yard is located just outside the port precinct.
A key component in maximising the use of rail The role of Botany Yard is to receive freight trains prior
infrastructure is to ensure that Port Botany can cater to exchanging containers at the stevedore sidings
for projected demand. A number of initiatives have (imports and exports), depart trains along the Port
been identified that can enhance rail access and Botany Freight Line to Cooks River, Enfield and the
operations, as well as assist in encouraging a higher metropolitan rail network, and control the access of
mode share for rail of containers entering and leaving trains into and out of the yard, Patrick PortLink yard
Port Botany. and the container terminal sidings. The anticipated
increase in the number of containers transported by
rail will place limitations on effective performance of
Port Botany container terminals
the yard, including the availability of track to allow for
This area covers the movement of train services the staging and through movement of train services,
between Botany Yard to the DP World and Patrick suitable lengths of sidings to support standardised
container terminals. A number of initiatives have been train services, and operational arrangements that allow
identified that will improve the efficiency and reliability for timely and efficient movement of train services
of these movements: into and out of the yard. A number of initiatives are
• Continuing productivity improvements in loading proposed over the next five years to support a greater
and unloading containers at stevedore container number of train movements:
terminals. Areas of future focus include stevedore • Fostering closer management of rail operations
sidings to accommodate 600 metre train lengths, between the Botany Yard and rail sidings at
introduction of improved rail handling equipment and the container terminals. This includes ongoing
technology by stevedores to handle larger container involvement in planning and managing train paths
volumes and implementation of separate shuttle and stevedore ‘window’ allocations by Sydney Ports,
services to each stevedore’s sidings. RailCorp, Australian Rail Track Corporation (ARTC),
• Provision of crossover to access the DP World DP World and Patrick.
terminal to increase capacity for DP World rail • Agreeing to a standardised train length consist
operations as this is currently impeded by single (600 metres) that reduces shunting and checking
line access. This will reduce the number and trains.
duration of delays for DP World when a train is
• Providing dedicated trains between each Port
waiting on the rail corridor for entry or exit into
Botany container terminal and metropolitan
Patrick container terminal.
intermodal terminals, subject to economically
• Closure of the Interterminal Access Road rail feasible volumes.
level crossing and construction of a grade
• Provision of additional track and infrastructure
separated junction.
in Botany Yard, including lengthening of sidings,
• Providing rail infrastructure to support the use of additional through tracks and signalling upgrade.
rail by the operator of the third container terminal at These works will cater for an increase in the
Port Botany. Sydney Ports will provide an additional number of train movements to the port and
track from Botany Yard to the new terminal that support standardised train lengths of 600 metres.
offers a flexible and efficient arrangement for
prospective users.

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Sydney Ports Corporation

3. Maximising the use of rail infrastructure in servicing the port

Port Botany Freight Line 3.2. Upgrading rail freight corridors in


The Port Botany Freight Line covers the length of metropolitan Sydney
dedicated freight railway between Port Botany and The anticipated growth in the volume of containerised
Enfield/Chullora in central-west Sydney. A number of freight moved by rail will place more pressure on
initiatives are proposed to ensure that rail operations existing rail arrangements. Along the metropolitan
can cater for future movements into and out of the rail corridors where freight trains share the network
port, as well as supporting more reliable and efficient with passenger trains, priority is given to passenger
operations at pinch points: services. This represents a significant constraint to
• Closure of Banksia Road pedestrian crossing on rail freight efficiency, particularly during the peak
the Port Botany Freight Line and construction of a commuter hours and when curfews prevent any
pedestrian overbridge to enhance operational safety. activities by freight trains on the metropolitan rail
• Closure of General Holmes Drive level crossing network. As a consequence of these constraints,
and (if required) investigation and construction of reliability decreases from 80 per cent to 30 per cent
alternate road access to minimise conflicts between between Newcastle and Sydney and from 60 per cent
trains and vehicles, as well as eliminating a speed to 40 per cent between Macarthur and Sydney.
restriction to the efficient operation of the Port The planning and development of rail freight corridors,
Botany Freight Line. including infrastructure design and land preservation,
• Refining access into and out of the Cooks River is needed to improve access within the Sydney
intermodal facility through improved coordination metropolitan area and linkages north to Brisbane and
and infrastructure to minimise conflicts on through south to Melbourne. Action in this area will encourage
movements along the Port Botany Freight Line. greater interest in using rail by customers and
• Permitting use of tracks within the Enfield operators by improving the reliability of freight train
Marshalling Yards as a common-user facility for rail movements. A number of projects under consideration
freight operators to stage trains which will improve by government will enhance rail freight movements in,
the efficient management of train services to and out and within the Sydney metropolitan area:
from Port Botany, particularly through the passenger • Southern Sydney Freight Line – a bi-directional
curfews for regional trains and those metropolitan freight priority line between Macarthur and Sefton
intermodal terminals not on the dedicated to allow additional train movements between
freight network. Port Botany and freight distribution activities in
• Commitment to complete the duplication of the Port south-west Sydney. This project is planned to be
Botany Freight Line between Mascot and Cooks completed in 2009 to ensure that sufficient train
River or equivalent works to provide the necessary paths are available to meet projected growth in
track capacity to meet projected demand. Rail rail mode share.
modelling undertaken by Sydney Ports indicates that • Northern Line Upgrade – a rail grade separation in
this work would be required within the next five to the vicinity of North Strathfield to allow Up trains
eight years. to access the metropolitan freight network without
the need to cross Down tracks, completion of full
quadruplication between North Strathfield and
West Ryde and dedicated freight access between
metropolitan Sydney and Newcastle. This project
will allow for additional train movements between
Port Botany and freight distribution activities in north
and west Sydney.

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Sydney Ports Corporation

3. Maximising the use of rail infrastructure in servicing the port

3.3. Intermodal terminal development to The proposed intermodal terminals would have a
support rail movements number of common elements to meet the required
freight logistics task. There would be direct rail links
The need to expand the intermodal network within
(dedicated or shared) to Port Botany. Road transport
Sydney is a prerequisite for the greater use of rail.
will provide and deliver containers and goods to
An intermodal terminal is a facility that allows for
destinations within the catchment area. The inclusion
the loading and unloading of containers and general
of warehousing and freight support services within the
cargo between road and rail based transport.
site also provides an opportunity to reduce the number
These facilities are used for container movements
of large truck movements within local communities.
to/from the port and between different states. The
Sydney metropolitan area comprises of a number of Sydney Ports has developed a proposal for an
intermodal terminals that serve port and interstate Intermodal Logistics Centre at Enfield that provides
movements. Analysis of container movements by the an intermodal facility to cater for demand generated in
Sea Freight Council of NSW in their February 2004 central-west Sydney. It is envisaged that this would be
report New South Wales Import Export Container one of the initial intermodal terminals implemented as
Mapping Study indicates that areas in the central- part of the proposed metropolitan intermodal network
west, south-west and west of metropolitan Sydney for Sydney. Planning approval for the facility was given
account for 70 per cent of full import and 34 per cent by the NSW Government in September 2007. It is
of full export container movements. The growth in envisaged that the facility will be operational by 2011.
container volumes and improvements to transport
capacity can support the development of additional
intermodal terminals.

The Metropolitan Strategy outlines a proposed network


of additional intermodal terminals in the central-west,
south-west and west of metropolitan Sydney to meet
predicted demand (Figure 4). These facilities are
proposed at Enfield, Moorebank and Eastern Creek
respectively. The NSW Government endorsed plans
for this metropolitan Sydney intermodal network in
May 2007. There are also other proposed intermodal
facilities being undertaken by the private sector,
including an expansion of the Macarthur Intermodal
Shipping Terminal at Minto and a joint venture
arrangement between Kaplan Investment Funds,
QR National and Stocklands for a new intermodal
facility at Moorebank.

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Sydney Ports Corporation

3. Maximising the use of rail infrastructure in servicing the port

Figure 4: Proposed intermodal network for metropolitan Sydney

&

EST .ORH7
WTH#ENR'O

REIGHT3OSBL& 0 PUR,INE
ITH ENR 0 -

#AMELI)NTROD
-
TAMR 0
YDNE)TRMOALS3 7 ENORA)TMDL 9 KSON ACT*R 0

- 9$.% 4(3/2
#HULORA)NTEMD
YDNE&OUTHR3 REIGHT,N 9$.% 3
EST)NRMODAL #7
#OKS2IVER)NTMDAL
ADGERS#K"Y #

-
POL ER,IV
94
YDNE)TRMOALS3 UH7 EIGHTONFLD)RMA, YT"OANR 0
EST 3OUH7 -
WTH#ENR'O
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-INTO)ERMDAL

'LEN

&

December 2005 Source: NSW Department of Planning

Existing intermodal terminals Ports

Possible intermodal terminals Employment lands

Proposed dedicated freight rail lines Planned employment lands

Existing dedicated freight rail lines Potential employment lands for investigation

Shared passenger freight rail lines Existing urban area

Motorway network Note: Chullora Intermodal Terminal is dedicated to interstate and regional freight.

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Sydney Ports Corporation

4. Minimising truck movements in


servicing the port

Logistics planning also requires an acknowledgement that road


transport will continue to support the majority of freight movements
within metropolitan Sydney. Recent extensions to the motorway
network have improved accessibility between Port Botany and key
distribution and industrial areas across Sydney.

Nevertheless, this infrastructure is shared with a low proportion when compared to total traffic
commuter vehicles and can have heavy traffic volumes (between 1 per cent and 2 per cent), it is important
during peak periods. An increase in the volume of that this growth be accommodated in future road
freight will translate into an increase in the number of network planning.
trucks using the road system. While the future number
of port trucks on the road will continue to represent

Figure 5: Port Botany truck arrivals by hour of day

10
1999 2004 2007
9
8
7
6
Per cent

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Time

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Sydney Ports Corporation

4. Minimising truck movements in servicing the port

4.1. Optimising road operations at Introduction of high efficiency container


Port Botany trucks in Port Botany
A number of initiatives have been identified that can Sydney Ports is seeking approval from the Roads
optimise road operations at the port, thereby making and Traffic Authority (RTA) for the use of high
the most productive use of road infrastructure and efficiency container trucks (HECT) in a defined area
operational resources. within the Port Botany precinct. These vehicles offer
additional container capacity per vehicle and provide
Encouraging truck movements away from measurable operational efficiencies for the movement
of containers within the port precinct. No operational
peak periods
impediments have been identified that could hinder
Analysis by Sydney Ports indicates that a trend the effective operation of high efficiency container
towards truck movements away from peak periods trucks. The introduction of high efficiency container
is emerging (Figure 5). There is also a proportionate trucks will facilitate improved container terminal
increase in truck movements on weekends operation and provide more reliable delivery times,
(Figure 6). This trend has been accompanied by thereby offering greater operating efficiencies for
reductions in truck turnaround times during a period importers and exporters in receiving and delivering
of strong container growth. The anticipated increase their cargo. The Port of Melbourne and the Port of
in truck volumes over the next few years will require Brisbane already use high efficiency container trucks
a further shift towards operations on a 24 hour, within their port precincts.
seven day a week basis.

Figure 6: Port Botany truck arrivals by day of week

25
1999 2004 2007
20

15
Per cent

10

0
Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Day of week

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Sydney Ports Corporation

4. Minimising truck movements in servicing the port

Road enhancements in Port Botany Operating hours of port


A number of incremental operational and minor logistics industries
infrastructure road enhancements have been The stevedoring terminals at Port Botany operate
identified that can provide for better traffic flows and on a 24 hours per day, seven days per week basis
management to cater for current and future volumes: (24/7). The other parties in the transport chain for
• A new road access point at Foreshore Road to containerised cargo operate varied hours, with many
support the new container terminal expansion. businesses continuing to operate on a business
This new road will enable traffic generated by the hours/Monday to Friday basis. The latter situation
new terminal to avoid the Penrhyn Road/Botany means that resources, including transport
Road/Foreshore Road intersection, thereby avoiding infrastructure and equipment, are under utilised.
potential capacity problems at this intersection. This issue was examined by the Sea Freight Council
The new road will also facilitate a reduction in the of NSW in the report released in January 2005 titled
number of port trucks using Botany Road north of Freight Supply Chain – Coordination of Working
Foreshore Road. This road is the main access route Arrangements.
for port traffic into and out of the port.
Industry has identified that an extension of the
• The progressive updating of traffic management operating hours by an increased number of
plans for individual sites at Port Botany port to organisations would provide efficiencies in the
mitigate and manage truck queuing and access transport chain as well as improved use of freight
arrangements. transport infrastructure, such as the road network, in
• Sydney Ports will work with other government non-peak periods. Government and industry should
agencies to analyse short and long term continue to work together to implement strategies to
improvements to intersection performance, truck spread the working hours of those organisations in the
staging areas and contingency management for freight transport chain. The introduction of incentives
Port Botany roads. These proposals would assist in and/or penalties may be considered to encourage a
managing truck movements that balances the need change in operating practices.
for operational efficiency and community amenity.
• Construction of the proposed extension of Hale
Street by a private developer at Botany to Foreshore
Road. This will allow for direct truck access to Port
Botany. The new road will also facilitate a reduction
in the number of port trucks using Botany Road
north of Foreshore Road. This road is the main
access route for port traffic into and out of the port.

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Sydney Ports Corporation

4. Minimising truck movements in servicing the port

4.2. Increasing truck efficiency to The NSW Government has also approved a number
minimise road movements of roads within metropolitan Sydney where HML
vehicles can operate and also cover other roads within
Government and industry are working together to
a 10 kilometre radius where the destination is in a
identify and implement a range of measures that
defined industrial zone. These include:
improve truck efficiency and reduce “unnecessary”
road movements. • Princes Highway (from intersection with
King Georges Road) – F6 Freeway.
Higher Mass Limits (HMLs) • F3 Freeway.
The NSW Government introduced the Higher Mass • M4 Motorway (west of the M7 interchange) –
Limit (HML) network from July 2006. HML allows Great Western Highway (west of the M4 Motorway).
eligible road carriers to operate at increased mass limits • M5 Motorway – General Holmes Drive –
compared to statutory limits (Table 3). Road carriers Foreshore Road (to Port Botany).
have to be accredited under the mass management
• M7 Motorway (M7 Motorway to Pennant Hills
module of the National Heavy Vehicle Accreditation
Road) – M2 Motorway – Pennant Hills Road
Scheme (NHVAS). Continual maintenance of a
(M2 Motorway to F3 Freeway).
vehicle’s suspension is a requirement for NHVAS
accreditation. This initiative offers greater truck • King Georges Road – Roberts Road.
efficiency while ensuring that the integrity of road
network infrastructure is maintained.

Table 3: Higher Mass Limits of approved NSW roads

Vehicle Standard (Gross) Higher Mass Limit Payload increase


configuration Mass Limit (HML) (higher compared
to standard)
19 metre (6 axle) 42.5 tonnes 45.5 tonnes 10 per cent
semi-trailer

25 metre (9 axle) 62.5 tonnes 68 tonnes 13 per cent


B-double

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Sydney Ports Corporation

4. Minimising truck movements in servicing the port

Mechanisms to support better truck 4.3. Expanding road freight corridors in


scheduling and utilisation metropolitan Sydney
A number of operational and technological The Metropolitan Strategy includes a careful
improvements have been implemented by industry, examination of transport needs. The objectives in the
such as vehicle booking system and automation of Strategy include improving the efficiency of all types
truck scheduling processes, which has delivered of freight movements in Sydney and connecting the
real benefits in managing truck scheduling and metropolitan regions with the economic gateways,
utilisation. This improvement can be seen in average namely Port Botany and Sydney Airport. Sydney Ports
truck turnaround times per truck at the Port Botany supports the examination of proposals to improve the
container terminals, which have decreased from an road connections between Port Botany and Western
hour in 2000 to 50 minutes in 2007. Sydney, including an eastern extension of the
M4 Motorway and an increase to the capacity
Government and industry will continue to examine
of the M5 Motorway. These will be important
and progressively introduce a range of mechanisms to
initiatives to ensure that landside logistics meets
allow for even more efficient use of container trucks,
long-term demand.
including:
• Delivering an export container or an empty container
to the port precinct and collecting an import
container in the same journey (backloading).
• Investing in equipment that can assist trucking
operations such as global positioning systems,
transponders and web camera technology.
• Enhancing computer systems, such as vehicle
booking systems.
• Supporting greater use of electronic bulletin boards
and SMS technology to disseminate up-to-date
information on port activities and operational delays.
• Facilitating greater use of electronic commerce to
eliminate paper documentation.
• Examining greater use of technology to assist with
container examination by the border protection
agencies.
• Continuing conformance to the introduction of the
Road Transport (General) Act 2005, which defines
mass, dimension and load restraint requirements
for vehicles.

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Sydney Ports Corporation

5. Implementation program

The Port Freight Logistics Plan provides a framework to meet the


challenges of managing port activities in light of anticipated demand.

The Plan discusses existing port operations, initiatives 5.2. Deliverable milestones
to maximise the use of rail, and initiatives to minimise
A number of initiatives have been identified in Sections
the impact of truck movements generated by the port.
3 and 4 that have been included in an implementation
Sydney Ports believes that the matters and issues
program to ensure best practice efficient and
discussed in the Plan will assist in improving port
advanced port freight logistics. The initiatives
freight logistics to the benefit of the port, industry
included within the implementation program offer
and the community.
discrete and incremental operational, technological
and administrative improvements to maximise the
5.1. Consultation use of rail infrastructure and improve the scheduling
The successful implementation of the Port Freight and utilisation of container truck movements.
Logistics Plan requires close collaboration between These initiatives also need to consider and address
Sydney Ports and all stakeholders in the logistics environmental impacts as appropriate. The deliverable
chain, including stevedores, rail operators, the road milestones of the program are categories as short
haulage industry, importers, exporters, the forwarding term (2008–2009), medium term (2010–2012), long
community and related government agencies. Sydney term (2013–2016) and ongoing. The milestones related
Ports already works with a number of industry and to the implementation program to maximise the use of
government stakeholders to resolve strategic and rail are provided in Table 4. The milestones related to
operational matters and issues related to port freight measures to improve the scheduling and utilisation of
logistics (Figure 7). These relationships will be pivotal container truck movements are provided in Table 5.
in progressing with the successful implementation of
the Port Freight Logistics Plan.

Figure 7: Sydney Ports stakeholder relationships

Transport Chain
Sydney Ports Users Consultative Group
Sydney Ports Cargo Facilitation Committee

Rail Groups Government Agencies


Botany Rail Steering Group – Ministry of Transport

Botany Rail Operations Group – RailCorp


Sydney Ports Corporation – Roads and Traffic Authority
Botany Corridor/Botany Rail Yard/
Container Terminals Interface – Local Councils
Group (joint working group) – Australian Rail Track Corporation
Industry Groups
NSW Sea Freight Council
Australian Logistics Council
Shipping Australia
Transport Industry Associations

21
Sydney Ports Corporation

5. Implementation program

5.3 Reforming Port Botany’s links with A number of recommendations relate to the vehicle
inland transport – Independent booking system, Port Botany Rail Logistics team and
road transport industry matters.
Pricing and Regulatory Tribunal
The NSW Government commissioned a review by At the time of publishing the NSW Government was
the Independent Pricing and Regulatory Tribunal reviewing the recommendations and preparing a
(IPART) into the Interface between the Land Transport response. Sydney Ports will have a key role to play in
Industries and the Stevedores at Port Botany. the implementation of the agreed recommendations.

On 18 March 2008, the Independent Tribunal released


its final report titled Reforming Port Botany’s Links
with Inland Transport. The Independent Tribunal
has made 18 recommendations to improve port
performance.

Table 4: Implementation program to maximise the use of rail infrastructure

Enhancing rail access and operations at Port Botany

Program initiative Stakeholder(s) Timing*


Fostering closer management of rail operations Sydney Ports, RailCorp, Australian Rail Short term
between the Botany Yard and rail sidings on Track Corporation, DP World, Patrick
stevedores container terminals

Provision of infrastructure improvements to Botany Sydney Ports, Ministry of Transport, Short term –
Yard to support future growth and RailCorp, Australian Rail Track Medium term
improve access to the container terminals Corporation, DP World, Patrick

Refining coordination and signalling infrastructure Sydney Ports, Ministry of Transport, Short term –
to support efficient access into and out of the RailCorp, Australian Rail Track Medium term
Cooks River intermodal facility Corporation

Permitting use of tracks within the Enfield Ministry of Transport, RailCorp, Short term –
Marshalling Yards as a common-user facility Australian Rail Track Corporation Medium term
for rail freight operators to stage trains

Closure of Banksia Road pedestrian crossing Sydney Ports, Ministry of Transport Medium term
on the Botany Goods Line and construction
of a pedestrian overbridge

Continuing productivity improvements in DP World, Patrick Medium term


container handling at container terminals

Agreeing to a standardised train length Sydney Ports, RailCorp, Australian Medium term
consist (600 metres) that reduces shunting Rail Track Corporation, DP World and
and checking trains Patrick

Provision of additional track and infrastructure in RailCorp, Australian Rail Track Medium term
Botany Yard to cater for increase in train Corporation
movements and 600 metre train lengths

Closure of the Interterminal Access Road Sydney Ports, RTA, Railcorp, Australian Medium term
rail level crossing and construction of a grade Rail Track Corporation
separated junction
* Definition of timing: short term (2008–2009); medium term (2010–2012); long term (2013–2016).

22
Sydney Ports Corporation

5. Implementation program

Table 4: Implementation program to maximise the use of rail infrastructure (continued)

Upgrading rail freight corridors in metropolitan Sydney

Program initiative Stakeholder(s) Timing*


Closure of General Holmes Drive level crossing and Ministry of Transport, Roads and Medium term
construction of alternate road access Traffic Authority, RailCorp, Australian
Rail Track Corporation

Providing rail infrastructure to support the use Sydney Ports Medium term
of rail by the operator of the third container terminal
at Port Botany

Complete the duplication of the Botany Goods Line Ministry of Transport, RailCorp, Long term
between Mascot and Cooks River or equivalent Australian Rail Track Corporation
works to provide track capacity

Construction of Southern Sydney Freight Line Australian Rail Track Corporation Short term –
between Macarthur and Sefton Junction Medium term

Complete rail grade separation on Main North Ministry of Transport, RailCorp, Medium term –
Line (at North Strathfield) to segregate freight and Australian Rail Track Corporation Long term
passenger train movements

Completion of full quadruplication on Main North Ministry of Transport, RailCorp, Medium term –
Line (North Strathfield and West Ryde) Australian Rail Track Corporation Long term

Dedicated freight access on Main North Line Ministry of Transport, RailCorp, Long term
(West Ryde to Newcastle) Australian Rail Track Corporation

Intermodal terminal development to support rail movements

Program initiative Stakeholder(s) Timing*


Progressive development and/or enhancement of Private sector Ongoing
private sector port related intermodal terminals

Completion of Enfield ILC Sydney Ports Medium term

Completion of Moorebank Intermodal Terminal Ministry of Transport Long term


* Definition of timing: short term (2008–2009); medium term (2010–2012); long term (2013–2016).

23
Sydney Ports Corporation

5. Implementation program

Table 5: Measures to improve the scheduling and utilisation of container truck movements

Optimising road operations at Port Botany

Program initiative Stakeholder(s) Timing*


Updating traffic management plans for individual Sydney Ports Ongoing
sites at Port Botany port to mitigate and manage
truck queuing and access arrangements

Introduction of High Efficiency Container Trucks in Sydney Ports, Roads and Traffic Short term
Port Botany, subject to approval by the Roads and Authority, Australian Trucking
Traffic Authority Association

A new road access point at Foreshore Road to Sydney Ports, Roads and Traffic Short term –
support the new container terminal expansion Authority Medium term

Construction of the proposed Hale Street extension EG Property Group, Sydney Ports, Short term –
to Foreshore Road Roads and Traffic Authority Medium term

Analyse improvements to intersection performance, Sydney Ports, Roads and Traffic Short term –
truck staging areas and contingency management for Authority, City of Botany Bay, Randwick Medium term
Port Botany roads City Council

Encouraging truck movements away from peak Sydney Ports, DP World, Patrick, Medium term
periods Australian Trucking Association, Sydney
Ports Cargo Facilitation Committee

Extension of operating hours of port logistics Sydney Ports Cargo Facilitation Medium term
industries Committee

Increasing truck efficiency to minimise road movements

Program initiative Stakeholder(s) Timing*


Continuing conformance to the introduction of the Roads and Traffic Authority, Australian Ongoing
Road Transport (General) Act 2005, which defines Trucking Association, Sydney Ports
mass, dimension and load restraint requirements Cargo Facilitation Committee
for vehicles

Investing in equipment that can assist trucking Private sector, Sydney Ports Ongoing
operations including webcams

Reducing barriers to backloading in the port precinct DP World, Patrick, Sydney Ports Cargo Medium term
Facilitation Committee

Enhancing computer systems, such as vehicle DP World, Patrick Medium term


booking systems

Supporting greater use of electronic bulletin boards DP World, Patrick, Sydney Ports Cargo Medium term
and short message services (SMS) to disseminate Facilitation Committee
up-to-date information on port activities and
operational delays

Facilitating greater use of electronic commerce to Sydney Ports Cargo Facilitation Medium term
eliminate paper documentation Committee

Examining greater use of technology to assist with Sydney Ports Cargo Facilitation Medium term
container examination by the border protection Committee
agencies
* Definition of timing: short term (2008–2009); medium term (2010–2012); long term (2013–2016).

24
Sydney Ports Corporation

5. Implementation program

Table 5: Measures to improve the scheduling and utilisation of container truck movements (continued)

Expanding road freight corridors in metropolitan Sydney

Program initiative Stakeholder(s) Timing


Consideration of proposals regarding an eastward Ministry of Transport, Roads and Ongoing
extension of the M4 Motorway Traffic Authority

Consideration of proposals regarding enhancements Ministry of Transport, Roads and Ongoing


to the M5 Motorway Traffic Authority
* Definition of timing: short term (2008–2009); medium term (2010–2012); long term (2013–2016).

5.4. Efficiency Indicators


The effectiveness of the port freight logistics
framework can be monitored though the development
of key indicators to determine any improvements in
the efficiency of the movement of freight. A number of
draft indicators have been identified for port operations,
rail transport, road transport and empty container parks
to provide some information on progress made in the
movement of containers (Table 6). The indicators for
2001 and 2006 are from actual aggregated information
provided by the stevedores. The indicators for 2011 and
2016 are estimated values that have been developed
through projections by Sydney Ports relating to
container throughput and may be reviewed due to
changing circumstances. Information on the indicators
will also be compiled by Sydney Ports on an
annual basis.

25
Sydney Ports Corporation

5. Implementation program

Table 6: Indicative Sydney Ports freight logistics efficiency indicators at Port Botany (Table to be reviewed)

Indicator 2001 2006 2011 2016


Crane rate (lifts/hour) 24.8 26.8 28.0 30.0

Ship rate (lifts/hour) 40.5 46.5 48.0 50.0

Total containers (TEU) 890,000 1,440,000 1,750,000 2,200,000


Port operations

Import containers (TEU) 475,000 740,000 962,500 1,210,000

Export containers (TEU) 415,000 700,000 787,500 990,000

20’ containers (per cent) 50 per cent 40 per cent 35 per cent 35 per cent

40’ containers (per cent) 50 per cent 60 per cent 65 per cent 65 per cent

Empty export containers <30 per cent <30 per cent <30 per cent <30 per cent
(per cent of all containers)

Rail mode share (per cent) 20 per cent 21.5 per cent 20 per cent 30 per cent
– 30 per cent – 40 per cent

Total containers (TEU) 214,000 290,000 350,000 660,000


– 525,000 – 880,000
Rail

Container lifts/shift 101.7 123.9 130.0 135.0

Train utilisation (per cent) 50 per cent 55 per cent 60 per cent 70 per cent

Train lengths (m) 300m – 900m 300m – 900m 600m 600m

Import containers (per cent) 25 per cent 30 per cent 40 per cent 50 per cent

Total containers (TEU) 776,000 1,150,000 1,225,000 1,320,000


– 1,400,000 – 1,540,000

Truck movements (day) 2,910 3,500 3,900 – 4,400 3,800 – 4,400*


Road

Average truck turnaround 60.0 45.0 40.0 40.0


times (minutes)

Truck utilisation (TEU) 1.8 2.1 2.2 2.3

Backloading (per cent) 8 per cent 10 per cent 15 per cent 20 per cent

Port related empty container 52,500 53,000 70,000 100,000


container

park storage capacity (TEU)


Empty

parks

Average utilisation of port 75 per cent 67 per cent 65 per cent 70 per cent
related empty container park – 80 per cent – 80 per cent
storage capacity (per cent)
* Range of truck movements per day influenced by higher rail mode share, longer operating hours for receival and delivery at container terminals, and greater
efficiency in the number of containers transported per truck.

26
Sydney Ports Corporation

Table 7: Development Consent Conditions for the Port Botany third terminal expansion

Development Application A2.4 Prior to the commencement of construction, the applicant shall prepare,
DA-494-11-2003-I, lodged by and submit, for the approval of the Minister, a Port Freight Logistics Plan which:
Sydney Ports Corporation with a) Examines existing container freight logistics and identifies areas for
the Department of Planning improvement in the efficiency of container movements and rail interfacing
through operational, technological or administrative changes;
on 26 November 2003, for the
construction and operation of b) Proposes and develops an implementation program to maximise the use of
rail infrastructure;
a new container terminal and
associated infrastructure c) Proposes and develops measures to improve the scheduling and utilisation of
container truck movements so as to minimise the number of trucks attending
Stage 1 development consent the port and truck turnaround times; and
approved by the Minister for d) Proposes an implementation program (including deliverable milestones and
Planning on 13 October 2005 efficiency indicators) so as to ensure efficient and advanced port freight
logistics consistent with best practice.
The plan must be submitted and approved by the Minister prior to the
commencement of construction.

Development Application A1.4 The scope of the Port Freight Logistics Plan required under condition A2.4
DA-494-11-2003-I, lodged by of the development consent granted by the Minister for Planning on 13 October
2005 with respect to development application DA-494-11-2003-I shall be
Sydney Ports Corporation with
expanded to also address the following matters:
the Department of Planning
a) Consideration of the Botany Yard and any constraints on the yard with respect
on 26 November 2003, for the
to capacity or timing of any necessary upgrade and/or expansion works;
construction and operation of
b) The need and timing of any necessary upgrades and/or expansion works to
a new container terminal and
provide dedicated departure and arrival roads for the Botany Yard; and
associated infrastructure
c) A production line arrangement of separate shuttle services to each stevedore
Stage 2 development consent siding for future operations, or other appropriate measure.
approved by the Minister for
Planning on 22 August 2006

27
Level 8, 207 Kent Street
Sydney NSW 2000, Australia

PO Box 25
Millers Point, NSW 2000, Australia

Telephone 61 2 9296 4999


Facsimile 61 2 9296 4742

enquiries@sydneyports.com.au
www.sydneyports.com.au

Disclaimer The information contained in this publication is produced in good faith and according to the knowledge available
to Sydney Ports Corporation at the time of publication. No warranty is given or representation made as to its accuracy..

Sydney Ports Corporation Port Freight Logistics Plan – June 2008

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