1. AusRAIL 2004 Intermodalism - Rail’s role in the bigger picture A port’s perspective Stephen Bradford CEO, Port of Melbourne Corporation 10 November 2004

2. New beginnings Integrating sea and land Victorian Government port reform agenda Prof Bill Russell recommendations PoMC into existence on 1 July 2003 Assumed VCA responsibilities from November 2003

3. New direction Strategic vision Providing benefits to port users Delivering world class intermodal services Maintain Melbourne as port of choice Investment certainty Planning for future needs

4. Economic contribution An engine for growth 37% of nation’s container trade Almost $70 billion handled annually Equivalent to $130,000 per minute $5.4 billion to Victorian economy 80,000 jobs directly and indirectly

5. A growing port Achieving record growth Growth rate of 9% per annum Forecast to handle 1.8 million TEU in 2005 Handled record 163,000 TEU in September Continued recovery from drought

6. Improving access Strategic projects Port Phillip Bay Channel Deepening Rail initiatives Melbourne Port@l - Dynon port-rail link - Footscray Road grade separation - Coode Road closure

7. Channel Deepening Victoria’s sea highway  Potential to add $14.8 billion to GDP by 2030  Benefits to shippers, cargo owners and consumers  Increased access and economies of scale  Remedies existing loading constraints  Prepares for next generation container fleet  Includes berth enhancement

8. Channel Deepening Project overview Dredging in three main areas 14m draught at all tides Commencement date = June 2005 (subject to approvals) Completion due 2007 Early estimated cost of $545 million

11. Channel Deepening EES and the regulatory process Project requires state and federal approval Released EES to public on 5 July 2004 Most comprehensive EES undertaken Includes 16 independent expert studies CSIRO experts also worked on the EES

12. Channel Deepening Responsible dredging Alliance with Royal Boskalis BV World’s best practice Specialised equipment limits turbidity Strict environmental criteria Independent monitoring

13. Channel Deepening Key facts No compromise on the long-term health of the Bay No explosives will be used in the project Project confined to channels only, representing around 1% of the Bay’s surface area Negligible sea level and current changes The Project will not contribute to beach erosion

14. Channel Deepening Estimated Timelines 5 July – EES released publicly September to December – EES Panel Hearings Panel recommendation to Minister – Feb 2005 Commonwealth approval April 2005 Commence project June 2005

15. Rail initiatives 1 Planning for future growth Completion of West Swanson Dock Rail link Upgrade of existing track at East Swanson Dock and Appleton Dock Plans to reintroduce Webb Dock rail link

16. Rail initiatives 2 Planning for future growth Victoria Dock Westgate Ports Pty Ltd redevelopment of Victoria Dock to include on-dock rail Melbourne Port@l Dynon-port rail link

17. Working in partnership 1 Victoria Dock development $80m joint venture with Westgate Ports Redevelopment of 17.5 hectares World class general cargo terminal On-dock rail link

18. Working in partnership 2 Victoria Dock development

19. Melbourne Port@l Towards an integrated port-rail network A world class freight terminal Integration of 400 hectares Improve rail access and capacity Reduce congestion

20. Melbourne Port@l Towards an integrated port-rail network Port Precinct Rail Precincts Dynon Port Rail Link Possible Extensions of Swanson Dock. In the long term Footscray Road may be elevated and possibly relocated to allow maximum extension of Swanson Dock and to give straddles, ITVs, & trucks direct access to additional land and to Dynon Rail Precinct Terminals Possible rail terminal & Port access roads Relocation of fruit and vegetable markets away from Footscray Road would free up land for Port related use Possible rail terminal access road

21. Melbourne Port@l Dynon-Port Rail Link $110 million Auslink funding Footscray Road grade separation Remove road / rail bottleneck More trains, greater access Completion scheduled for 2009

22. Melbourne Port@l Other key projects Coode Road closure – due 2005 Relocation of wholesale markets by 2010 West Swanson rail link already in place Trials of 1500 metre trains commenced Meeting 30% rail freight target by 2010

23. Increasing rail’s share Strong growth in rail’s share of TEUs over last 10 years Total TEUs Rail TEUs 1993-94 802,55280,255 2003-04 1.72 million258,160 Represents actual growth of 222%

24. Rail movement trends Upward trend in rail movements with record trade growth 2003-04 reduction due to drought

25. Rail variables Actual rail movements declined in 2003-04 as a consequence of drought conditions Future Webb Dock rail link reliant on increased trade to make project feasible

26. Thank you An invitation for questions