NSW: Keeping the wheels turning
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Posted by Paula Wallace
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7, May, 2025
NSW Ports provides an update on current trade flows and progress on its projects to improve capacity especially on rail
THE CURRENT year is so far proving to be a positive one for NSW Ports. As manager of Port Botany and Port Kembla, the organisation handles millions of tonnes of diversified trade each year.
This year, container volumes are tracking up at Port Botany with strong volumes in the lead up to Christmas, including a record set in November.
Fuel and gas volumes are also tracking 5% above last year.
“At Port Kembla we are seeing overall growth of 3.5%,” said NSW Ports chief Marika Calfas.
She told Daily Cargo News, “This year is another very strong year for grain exports which are up 33% on last year”.
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Only motor vehicle imports have declined at Port Kembla, 17% lower than the prior year, reflecting declining car sales since 2024 while Port Botany container volumes held at 2.7M TEUs.
The growth in the importation of machinery, electronics, transport equipment, paper and wood products was partially offset by lower import volumes of manufactured furniture and toys.
“Containerised exports also saw modest growth of 0.62% on the previous year,” said Ms Calfas.
“Driven primarily by increased exports of iron, steel, and aluminium products and foodstuffs”.
Port Kembla handled 405,000 motor vehicle imports in 2023/24, which was a 2.5% increase on the previous year, as well as very good grain export volumes of two million tonnes, albeit down on the record year in 2023 of 3.7 million tonnes.
Big plans
NSW Ports also manages the Enfield Intermodal Logistics Centre and Cooks River Intermodal Terminal. With direct rail links to Port Botany, these intermodal hubs play a key role in supporting NSW’s freight task and help reduce the growth of truck movements on Sydney roads.
These supply chains will receive a boost with Stage Two of the On-Dock Rail Investment Program at Port Botany scheduled to commence in the first half of this year.
This year is another very strong year for grain exports which are up 33% on last year.
Marika Calfas, NSW Ports
NSW Ports will co-invest with DP World in a new rail terminal at DP World’s container terminal.
This will include 600 metre rail sidings serviced by rail mounted gantry cranes, boosting rail handling capacity at the terminal to an ultimate throughput of 1M TEU per annum. NSW Ports will contribute $148 million towards the delivery of four rail sidings.
DP World will invest $250 million in an additional rail siding, and upgrades to its logistics park in a broader project.
NSW Ports is also investing in a project to extend the southern quay of Brotherson Dock by 314 metres, with adjoining hardstand area.
“This project will better equalise berth length across the three container terminals at Port Botany, allowing three longer container vessels to berth at each terminal at the same time,” said Ms Calfas.
Port Kembla adapting
NSW Ports is also progressing plans to develop an offshore wind port facility in Port Kembla to support the construction of wind projects on the east coast, starting with Gippsland.
“We are currently working on the Environmental Assessment to modify our existing planning,” said Ms Calfas.
Always open
The Port Authority of NSW is on the job 24/7 every day of the year, ensuring safe passage for most of the state’s trade.
In the last financial year the port authority conducted 10,268 pilotage movements across its ports and welcomed 5587 commercial vessel visits.
Acting CEO John McKenna told DCN, “Twenty-twenty-four was a strong year for the port authority, celebrating our 10-year anniversary as a state-owned corporation”.
The summer 2023-24 cruise season was the best on record, contributing to a $4.41billion economic return to NSW.
“NSW remains the capital of cruise for Australia, and the port authority remains invested in supporting the industry’s post-COVID resurgence with 366 cruise ship visits across the State’s ports,” said Mr McKenna.
Summer cruise for 2024-25 is expected to see 1.2 million passengers and crew. This will be aided by planning approval allowing bigger cruise ships and more visits to the southern NSW region of Eden.
The planning modifications allow the arrival of ships up to 370m long (up from 325m), removes the 60 ships per year cap, and allows for overnight stays. This planning approval paved the way for the record-breaking Ovation of the Seas visit on 22 February, which saw the 348-metre long vessel carrying 4862 passengers sail into Snug Cove.
The port authority has also upgraded Moores Wharf in Sydney Harbour with a new floating pontoon to improve access and operational efficiency.
It has also improved safety for pilots with a new ladder training facility in Port Kembla, to assist trainees to practice scaling ladders on the side of a moving ship.
Another significant achievement was reaching net zero Scope 2 greenhouse gas emissions, by fully offsetting energy consumption at its large sites with renewable energy generated in the New England Renewable Energy Zone under a Power Purchase Agreement, and sourcing 100% renewable electricity for all small sites.
"With sustainability at our core we’re proud to have achieved net zero for Scope 2 emissions, paving the way for our 2040 net zero goal,” said Mr McKenna.
The original approval to develop part of Port Kembla’s Outer Harbour was obtained in 2011 and the modification will change the development to enhance its capability to handle offshore wind components in the near term and containers in the long term. Port Kembla will also be home to the country’s first liquefied natural gas import terminal.
Squadron Energy recently completed the import terminal construction and is in the process of commissioning the onshore receiving facility. This will ensure the functionality of all equipment at the terminal including the control system, marine loading arms and fire system.
Located on Dharawal land, in Port Kembla’s Inner Harbour, the project has reportedly supported about 200 jobs during construction and injected $27 million into the regional economy.
The terminal has the capacity to supply 500TJ a day, enough to meet all of NSW’s gas needs on a peak day or half of Victoria’s peak day demand.
“We were able to repurpose part of the existing coal terminal in order to support a need for LNG supply into the east coast of Australia,” said Ms Calfas.
Environment on track
“Port Kembla was a compelling location for Squadron, with strong support from the region’s stakeholders, a significant existing industry base, local skills, and close proximity to the Eastern Gas Pipeline, which services NSW and Victoria,”
she added.
“This is another example of the diversity of trades handled at Port Kembla and the port’s ability to adapt and meet the changing needs of the NSW economy.”
NSW Ports’ investment in rail has resulted in an 11% increase in freight moved by rail in and out of its ports since 2022. It has also achieved a 45% reduction in electricity used at the Enfield Intermodal site due to energy efficiency projects.
The organisation is on its way to reaching a target of net zero Scope 1 and 2 greenhouse gas emissions by the middle of this year.
NSW Ports has developed a Scope 3 decarbonisation roadmap to identify potential decarbonisation initiatives in future.
“In terms of supply chain decarbonisation, it is important to recognise that it will rely heavily on having ample green electricity supply and grid/network capacity to support electrification,” said Ms Calfas, adding the availability of technology and alternative fuels are also vital."
This article appeared in the April | May 2025 edition of DCN Magazine
