$120 million investment to boost rail capacity at Port Botany

NSW Ports is set to invest in ‘on-dock’ rail infrastructure capacity at each of the three container terminals at Port Botany, commencing in 2019.
Investment will be staged, with stevedores being required to invest in rail operating equipment to meet target terminal capacities.
“The growth of containers on rail is a key objective in NSW Ports’ Masterplan, to cater for the growing trade needs of NSW. This investment will build greater rail capability at the port, supporting the Government’s investment in completing the Port Botany rail duplication and ongoing investments in large scale intermodal rail logistics centres at Enfield and Moorebank,” Marika Calfas, Chief Executive Officer, NSW Ports said.
The investment will reduce the growth in truck movements around the port.  When fully operational this investment will reduce truck kilometres travelled in Sydney by at least 10 million per year. This will save over 2 million litres of diesel per year which is the equivalent to a net reduction in CO₂ emissions of more than 5,400 tonnes a year.
“Patrick currently handles a large volume of rail based containers and is focussed on growing and optimising our rail offering.  NSW Ports’ investment in rail infrastructure will be accompanied by Patrick’s $70 million investment in operating equipment and systems to deliver 1 million TEU capacity. Our agreement with NSW Ports will significantly increase our terminal’s rail capacity and enhance productivity and efficiency in container movements at the port,” Michael Jovicic, Chief Executive Officer, Patrick said.
To fund the investment, NSW Ports will implement a modest increase of $3.08 per TEU in wharfage fees on full imports and exports from 1 July 2019. This has been spread over the long term to minimise the wharfage increase and will be removed once the cost of the investment has been recovered.
Work will begin next year and is planned for completion by 2023. Rail operations at Patrick are expected to continue during the construction period.