Published on November 20, 2013
NSW PORTS Port Kembla Regional Ports Conference 20 November 2013
Who Is NSW Ports • NSW Ports is a consortium of leading institutional investors and represents more than 80% Australian superannuation funds. The NSW Ports consortium comprises: Industry Funds Management (IFM) Australian Super Pty Ltd Tawreed Investments (Tawreed) Global Infrastructure Partners (GIP) on behalf of The State Public Sector Q Super 45.01% 20% 19.99% 15%
We are investors and managers of some of Australia’s most critical infrastructure • NSW Ports members are long-term investors, with interests in a range of key infrastructure assets throughout Australia including: – Ten Airports, three seaports, three toll roads, one rail station and 16 social infrastructure assets. Brisbane Airport Northern Territory Airports Northern Territory Queensland Western Australia Perth Airport Port of Brisbane South Australia New South Wales Victoria Eastern Distributor Perth Law Courts Tasmania Melbourne Airport Southern Cross Station
We have invested in NSW since 1998 NSW Ports members are also investors in critical NSW road infrastructure including the Eastern Distributor and M5 South West motorway We are delighted with the opportunity to invest in NSW’s most important seaports New South Wales Description Location Year Acquired M5 South West Motorway Toll road Sydney 1998 M4 Motorway Toll road Sydney 1998 M1 Motorway / Eastern Distributor Toll road Sydney 2000 Wyuna Water Water treatment Illawarra, Woronora 2003 Axiom Education School buildings Sydney 2003 NSW Rent Buy Public sector housing Sydney 2005 Airport Sydney 2008 Sydney Desalination Plant Water treatment Sydney 2012 Port Botany & Port Kembla Ports Sydney, Illawarra 2013 Investment M1, M4, M5, Sydney Airport, Sydney Desalination Plant, NSW Rent Buy Axiom Wyuna Water Port Kembla Port Botany Sydney Airport
Port Botany & Port Kembla are critical assets that support the well being of the State NSW Ports recognises the critical importance of both Port Botany and Port Kembla to NSW’s future economic growth, development and well-being NSW is the largest state economy in Australia and accounts for almost one-third of the Australian economy Both Port Botany and Port Kembla are very high quality assets Port Botany is Australia’s 2nd largest container port and sole container port servicing Sydney, the largest population centre in Australia Port Kembla is Australia’s largest vehicle import facility and a key gateway for coal, grain and bulk products The combination of these two ports represents one of Australia’s most critical and strategic assets We are committed to the responsible management of, and investment in, both assets for the long-term due to the vital role they play in economies of the Sydney, Illawarra and greater NSW regions We will actively seek to work with all stakeholders to maintain high quality port services and effective customer interactions
Our vision is to create an integrated, world class port management company Develop both ports to their full potential • Promote safe, responsible and reliable operations • Capitalise on the strengths of each facility Responsible and efficient operation of the organisation • Bring out the best from the combined organisation by having a highly engaged workforce • Support management and staff to deliver effective outcomes Build strong relationships with all stakeholders • Maintain strong customer relationships • Work with other stakeholders including government, stevedores, transportation logistics companies and local communities to solve off port issues Focus on sustainable growth • Committed to managing and developing the ports in a safe, secure, efficient and environmentally responsible manner • Be a good corporate citizen that employees and investors can be proud to be part of
Trade Results 2013/14 Commodity Trade Tonnes Ship Visits Coal 13,382,000 1000 Steel 6,117,000 900 Motor Vehicles 5,691,000 800 Grain 2,638,000 700 Copper Cons 782,000 Oil 222,000 Acid 50,000 Total 28,882,000 600 500 2011/12 2012/13
2013 Major Highlights • Transition from Government to Private ownership on1 June 2013 • Cement Australia project well underway • Port Kembla Coal Terminal enhancement in progress • Design for first OH berth completed • Approval to increase first OH berth capacity to 16 mta in progress • New rail services contract finalised • Tender for OH access road awarded • Work continues on Maldon – Dombarton and Port rail capacity
BAU - TRANSACTION DETAILS • • • • • • • • • • 99 Year lease of Commercial activities Lease price $5b PKPC & SPC remained as SOC’s – currently under review Regulatory functions remained with PKPC & SPC Pilotage remained with PKPC & SPC Contracts agreed with TfNSW for channel use, development over seabed, dredging, maintenance of nav aids, etc Some lease differences between SPC & PKPC Service level agreements established between NSW Ports, PKPC & SPC – ongoing & temporary All eligible PKPC staff transferred Review Port development plan – 6 mths post transaction then 5 yr
BAU – CHALLENGES (1) • Integrating separate PKPC and SPC systems and procedures • Developing policies to suit both entities • Integrating different cultures • Optimising use of staff skills & experience across both Ports • Extricating systems from the SPC & PKPC network • Implementing a new suite of IT systems & procedures • Ongoing relationship between NSW Ports, PKPC & SPC
BAU – CHALLENGES (2) • • • • • • • • • Maintaining staff morale Changing culture – government > private Perception that PK will be driven from Sydney Perception that regional focus will be lost Perception that decision making capability will be reduced Job uncertainty Management of future EBA negotiations Impacts of standardised procedures/processes/policies Changing information needs etc
Port Developments – In progress Project Value National Biodiesel Project (project structure being reviewed) $250m Cement Australia grinding mill $180m Coal Terminal upgrade $300m Gateway Storage shed $2m Port Rail Upgrade $2m O/H Access Road $3.5m Demolition no 3 Jetty $3.0m
Approved Port Developments Project Value 1) New export facility $65m - Berth 103 extension – post Panamax - Dry bulk storage facilities approx 110000 tonnes - Mobile shiploader/conveyor 2) New fuel storage facility $20m - Fuel storage tanks/pipelines 3) Port Coal Terminal rail upgrade 4) Bulk Liquid exports facilities $20m $?m
Potential - Port Projects Project 1) TriMinsCom – Woodlawn mine 2) E3 Steel Iron ore exports 3) Standard Iron Exports 4) Australian Bauxite 5) Hume Mining 6) Others Status Feasibility – 3 yrs Feasibility 5 years JORC – 3 -5 years 2016 -2018 Feasibility 5 -7 years In discussion
Artist’s Impression – Outer Harbour Development
Cement Australia construction site - Outer Harbour
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