Diversification of Australia’s ports is inevitable as the country prepares for the coming decades of international trade. DCN explores the driving factors behind this change and how the maritime industry is making it happen.
AS INTERNATIONAL investment turns towards Australia in the face of global turmoil, our island nation’s ports are already in preparation for the next chapter of global trade.
Terminal operators are increasingly becoming key drivers of investment and innovation across Australia’s ports.
From moves to containerisation by traditionally bulk ports, to landside connections with regional cities, port authorities are focusing on their capacity to accommodate growth in trade volumes while meeting sustainability objectives with international partners.
Diversification strategies will show that infrastructure decisions being made will shape future trade flows, supply chain resilience and Australia’s global competitiveness for decades to come.
Trade growth and population shifts are among the key factors driving the current wave of port and terminal development, according to Ports Australia chief executive Mike Gallacher.
“Through close collaboration with ports, (terminal operators) have delivered world-class terminal projects with automation and improved connectivity reshaping the way cargo moves through the system,” he said.
“As critical players in the broader port ecosystem, terminal operators working side by side with ports to invest in efficiency and safety are essential to overall port and supply chain performance.”
Trade growth and population shifts go hand in hand – and it’s not just bigger populations, but people-shift across states following COVID, that has caused a rethink in how ports contribute to domestic supply chain."
Mike Gallacher, Ports Australia
Mr Gallacher said there was a significant focus on the criticality of the maritime supply chain, not only in Australia, but also globally.
“Supply chain resilience was always a consideration, but it gained heightened attention during COVID and more recently due to the increased geopolitical temperature,” he said.
“Trade growth and population shifts go hand in hand — and it’s not just bigger populations, but people-shift across states following COVID, that has caused a rethink in how ports contribute to domestic supply chain.”
One port manager that has taken advantage of this shift is North Queensland Bulk Ports (NQBP).
Headquartered in Mackay, NQBP manages the ports of Hay Point, Mackay, Abbot Point and Weipa, which together facilitate more than 150 million tonnes of trade annually.
The total contribution to the Queensland economy is estimated at $35 billion.
Collectively, NQBP ports move 54% of the state’s trade by volume, including 68% of coal exports.
A multi-million-dollar container depot is currently under construction at the Port of Mackay to make way for expanded and more efficient local trade.
The 1.3-hectare facility will be “the first of its kind” in the region, supporting existing trades and enabling regular containerised imports and exports directly through Mackay.
NQBP chief executive Brendan Webb said this meant local businesses and producers will have the opportunity to send and receive goods directly, without the need to route freight through more distant ports such as Brisbane.
The new container depot under construction at the Port of Mackay will enable producers
to send and receive freight directly. Image: North Queensland Bulk Ports
“NQBP market studies show a strong demand in the region for the depot, with a steady build-up of trade in the coming years to around 7,000 twenty-foot equivalent units (TEU) a year through Mackay,” he said.
“Mackay’s strategic location — close to major mining and agricultural hubs — means industries can rely on a more robust and flexible logistics network with a dedicated container facility at the port.”
The need to balance containerisation and multipurpose capability has become a priority for management.
Mr Gallacher said ports are under pressure from federal and state governments to build sovereign capability, while also supporting regional economic development.
“Achieving this requires strong, coordinated investment from both ports and all levels of government,” he said.
Mr Gallacher said there is a genuine uplift in port capability when it comes to new and proposed developments — a process that has evolved over the past 250 years in Australia.
These are delivered through regionally tailored projects.
“Collectively, these projects are boosting national capability, resilience and flexibility across the port network,” he said.
“As ports grow, other factors such as large components used in manufacturing, mining and clean energy and changes in ship designs and sizes, will continue to shape the evolving port landscape; and Australia’s ability to service those goods and vessels.”
While regional communities look at costs of moving freight over larger distances, the traditional focus on locally sourced commodities has shifted towards commercial opportunities.
Such opportunities come with diversification of trade capabilities, according to Mr Gallacher.
“Clearly, regional centres are seeking to take advantage of Australia’s well-positioned port network and identifying where goods can be shipped closer to their towns,” he said.
In the meantime, ports based in metropolitan centres around the country are also set to undergo significant changes.
The Port of Melbourne released the final version of its 2055 Port Development Strategy (PDS) late 2025, with plans that will ultimately influence the types and amounts of cargo that will move through the port, among several other factors.
Port of Melbourne chief executive
Saul Cannon. Image: Port of Melbourne
Port of Melbourne chief executive Saul Cannon said key development drivers included vessel trends, landside transport needs, inner-city growth and land use changes around the port.
“With Victoria’s population growing and trade volumes expected to more than double over the next 30 years, developing the port will be essential to the state’s economic success,” he said.
“This includes navigating some complex opportunities and challenges to keep goods moving efficiently.”
Considerations also include technology and energy transition, such as preparing for new technologies and the shift toward decarbonisation, sustainability and resilience.
“Over the past 10 years, port trade volumes have increased from 89 million revenue tonnes in 2015-16 to 114 million revenue tonnes in 2024-25, representing a solid annual average compound growth rate of 2.4%,” Mr Cannon said.
Potential changes to port land and infrastructure identified include upgrades to the existing Swanson Dock and Webb Dock container berths to handle larger vessels.
Another priority was to develop container capacity within Webb Dock to support sustained international trade growth.
"Over the past 10 years, port trade volumes have increased from 89 million revenue tonnes in 2015-16 to 114 million revenue tonnes in 2024-25..."
Saul Cannon, Port of Melbourne
“These changes include considerations for container trade, liquid bulk, and dry bulk, such as cement, sugar, and gypsum,” Mr Cannon said.
“Freight needs to move in and out of the port 24/7, and as the population grows, there will be more pressure on road and rail networks.
“To ensure the port continues to provide efficient and cost-effective access to import and export markets in south-eastern Australia, we need to consider how existing infrastructure and external road and rail networks can be better leveraged in our planning and development.
“Our goal is to move goods with fewer trucks and in a more sustainable way.
“Maintaining, protecting and upgrading access to Victoria’s road and rail networks is critical to keeping the port operating efficiently.”
The Melbourne Intermodal Terminal (MIT) is strategically located in the heart of the city’s busy industrial zone in the north.
The terminal plays a central role as part of a larger $1.6 billion freight and logistics investment called the Melbourne Intermodal & Industrial Exchange (MIIX).
Intermodal Terminal Company (ITC) chief executive Mishkel Maharaj said the MIT has already begun to demonstrate its capabilities to supply chain customers.
"The $400 million Melbourne Intermodal Terminal (MIT) is now operating 600-metre freight rail shuttle services to and from the nation's largest container and general cargo port.
“By rail, the new intermodal is a mere 20-kilometres to the Port of Melbourne and enjoys direct access to regional, state and national rail networks and the Hume Freeway.
"The MIT will play a major role in helping to underpin the future success of the Victorian government's Port Rail Shuttle Network and the related Port of Melbourne Start-up Incentive Scheme."
Mr Maharaj said a “game changing feature” for their supply chain customers was access to co-located warehousing and logistics services.
"The MIT will also act as a powerful catalyst to stimulate larger volumes of interstate containerised freight to be hauled by rail,” he said.
The open access terminal can process 1,800-metre interstate freight trains, has more than 30-hectares of concrete hardstands.
"The MIT will play a major role in helping to underpin the future success of the Victorian government's Port Rail Shuttle Network and the related Port of Melbourne Start-up Incentive Scheme."
Mishkel Maharaj, Intermodal Terminal Company
It features multiple rail sidings which can accommodate both standard and broad-gauge rail services, modern rail mounted gantry cranes, an empty container park and facilities to clean, fumigate and repair containers.
"The MIT is a convenient 'one stop shop' for an array of IMEX and interstate customers in both the Victorian and national supply chains who are looking to increase the efficiency of their operations,” Mr Maharaj said.
He said the terminal provides better connectivity to and from the port, enabling customers to enhance the environmental and community credentials of their services.
"The MIT and MIIX are powerful examples of private capital investing in critical productive infrastructure to help lift the resilience and reliability of Australian supply chains," Mr Maharaj said.
The Port of Brisbane (PBPL) is abuzz with new customers seeking to establish operations at the port, while current customers are also awaiting expansion opportunities.
The foremost priority for the port is to facilitate safe and efficient trade movement through their waters and facilities.
“As a port manager, our core focus is facilitating trade growth,” a spokesperson for the Port of Brisbane said.
“We continue to see strong demand for land from new customers looking to establish operations at the port, as well as existing customers wanting to expand.”
The 200-hectare Future Port Expansion (FPE) area at Fisherman Islands provides long-term capacity and the port has been progressively developing land to support future trade needs.
PBPL operates the Brisbane Multimodal Terminal (BMT), the port’s key road-to-rail interface.
“Rail remains underutilised, so increasing container movements by rail is a strategic priority,” the spokesperson said.
“We’re continuing to invest in capacity and efficiency improvements at the BMT and working closely with industry and exporters on viable supply chain options.
“We also know container vessels are increasing in size globally.
“Ensuring the port’s 90-kilometre shipping channel can safely and efficiently accommodate larger ships in the future is a major long-term focus.”
The proposed Channel Enhancement Program would widen, deepen and straighten parts of the channel.
The project was declared a coordinated project in 2024.
It required both Queensland and federal government approvals.
Port of Brisbane management is also currently preparing a draft Environmental Impact Statement as part of the process.
“Ultimately, inefficient cargo supply chains restrict growth and limit economic activity,” the spokesperson said.
“Over the next decade, we’ll remain focused on working with customers and stakeholders to strengthen connectivity across the port and broader supply chain, ensuring the Port of Brisbane can support Queensland’s growing population and trade needs.”
Measures include ongoing land and property development to support trade growth, increasing capacity and rail utilisation at the Brisbane Multimodal Terminal and improving the safety, capacity and efficiency of the 90km shipping channel through our proposed Channel Enhancement Project.
“Sustainability underpins each of these priorities and the broader program of work we’re delivering with stakeholders as well as working closely with Traditional Owners,” the spokesperson said.
“These investments will support environmental, economic and social outcomes aligned with the port’s growth — reducing impacts on local communities and the environment.”
Alongside a raft of sustainability initiatives are reducing supply chain costs and increasing competitiveness, as well as boosting trade that creates jobs and economic growth.
As critical players in the broader port ecosystem, terminal operators are working side by side with ports to invest in efficiency and safety and are essential to overall port and supply chain performance.
NSW Ports chief executive Marika Calfas.
Image: NSW Ports
NSW Ports chief executive Marika Calfas said freight network performance, connectivity and resilience (for both road and rail) are fundamental to efficient port operations.
“The efficient movement of freight to and from our ports impacts the cost effectiveness and sustainability of supply chains,” she said.
“Increasing rail volumes is a critical part of our strategy to sustainably support NSW’s growing freight task.
“Port Botany is well placed to grow container movements on rail with the port connected to a network of metropolitan and regional intermodal terminals through dedicated and share freight rail.”
Port Botany’s on-dock rail investment program is complemented by investments being made throughout the rail supply chain in NSW at intermodal terminals and the freight rail network.
“As the state’s freight task grows, moving more containers by rail helps to secure sustainable port supply chains, reducing emissions and reducing the growth of trucks on roads around the port,” Ms Calfas said.
“These investments also enhance port capacity and efficiency.”
Sustainable port development and trade growth was directly connected with population growth, Ms Calfas said.
The population of Greater Sydney is forecast to grow by at least 1.8million by the year 2063.
“Population growth is closely connected to consumer demand and import trade volumes, such as containers, motor vehicles and cement,” she said.
“In planning for this growth, we are considering the requirements of our port supply chains and their resilience to disruptions.
“NSW Ports is focused on capturing the opportunity to sustainably meet NSW’s growing trade needs through investment in infrastructure and operations that strengthen supply chain resilience, expands capacity and supports productivity.”
Around the country, ports are seeking to diversify through a variety of means, including renewable energy precincts and infrastructure.
An example of this is the Port of Newcastle’s Clean Energy Precinct, which chief executive Craig Carmody has called “the most advanced port in Australia toward clean energy production”.
“We’re the only port approaching the final stages of front-end engineering design and environmental impact statement studies, signalling our continued momentum toward making clean energy production a reality in Newcastle,” he said.
“With 16 hectares of adjacent storage and direct national road and rail links, we provide importers and exporters with an efficient, cost-effective and reliable option to move their goods.”
The port’s multipurpose terminal plays a vital role in supporting the economic and energy goals of New South Wales.
“This is where specialised cargo for key regional and state-significant projects arrives, from wind farm components to battery storage systems and transformers,” Mr Carmody said.
“By expanding our services at the multipurpose terminal, we’re fostering competition and innovation across the NSW port network.
“Newcastle’s deepwater access, strategic location and capacity for growth make it a compelling alternative for industry.”
The east coast deepwater port was selected as the preferred site for the clean energy precinct due to its connection to the road network.
The Port of Newcastle is also investing in infrastructure to meet the evolving needs of the automotive industry.
“Newcastle’s deepwater access, strategic location and capacity for growth make it a compelling alternative for industry.”
Craig Carmody, Port of Newcastle
“This work strengthens both NSW’s and Australia’s supply chain resilience,” Mr Carmody said.
“Port of Newcastle’s balanced approach allows us to support traditional industries as we develop new opportunities that will provide a sustainable economic future for our community.”
Mr Gallacher said large infrastructure components for clean energy and staging for disposal of decommissioned offshore oil and gas facilities, requires “significant planning and construction projects”.
“There is increasing practical implementation of decarbonisation projects, with ports now at the forefront of enabling cleaner, smarter and more efficient logistics systems,” he said.
While Australia has faced the challenge of having only a small influence on international shipping, decarbonisation presents a big opportunity for ports.
Mr Gallacher said it was not only the distribution of future fuels but also staging imported materials to construct renewable energy zones and offshore wind.
“Changing energy and fuel requirements will see fossil fuels replaced with alternate fuels such as sustainable aviation fuel and biofuels — utilising the same or similar infrastructure,” he said.
“At the same time, our ports are part of the state’s energy transition through the handling of solar panels, batteries, transformers and wind farm componentry.
“These investments are essential to support competitive export industries, ensuring cost effective imports and reducing community and environmental impacts through better freight movement performance.”