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PORTS AND CITIES: A REGIONAL PERSPECTIVE OR BACK TO THE FUTURE Luke Fraser Principal - Juturna Infrastructure Consulting November 2011.

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Presentation on theme: "PORTS AND CITIES: A REGIONAL PERSPECTIVE OR BACK TO THE FUTURE Luke Fraser Principal - Juturna Infrastructure Consulting November 2011."— Presentation transcript:

1 PORTS AND CITIES: A REGIONAL PERSPECTIVE OR BACK TO THE FUTURE Luke Fraser Principal - Juturna Infrastructure Consulting November 2011

2 Briefly… Freight infrastructure policy/investment advisory Practice: how to unlock private capital to invest? Risk, deal structures, pipelines, road, rail, port investments Advisory role to Infrastructure Australia esp. road reform Author of Mount Isa to Townsville 50-year plan

3 Today Historical thinking: ports and their cities Change in thinking about ports and cities Current thinking: Cities which happen to have ports attached National Ports Strategy Back to the future: Mount Isa to Townsville Supply Chain Going further

4 Historical thinking 1788 – WW2?: Ports and their cities White settlement – economic infrastructure (ie ports) meant survival = planning precedence Ports were our lifeline to the world (port infrastructure was also telco infrastructure until well into-19 th century) Almost no great inland cities arose despite wool boom, gold etc Port of Geelong late 1800s

5 Change Australian economy becomes more sophisticated (growing services sector, etc) increasing affluence = diminished importance of port in citys thinking Port land becomes desirable for residential, ports equated with noisy, smelly, cause of road congestion, etc Coles Bay Sydney 1930s

6 Current thinking Cities which happen to have ports attached Ports are shifted or development stymied by other civic priorities Landside port connections become asphyxiated, contribute to congestion, no priority planning Port dies - but citys trade efficiency and prosperity dies too! Public funding becomes harder to obtain (ports versus hospitals) Private investors see no regulatory priority given to ports – so they steer clear of investing Coles Bay Sydney 2010

7 National Ports Strategy Catch the problem in time: create a place for ports and a place for freight in civic plans Advocates long-term port planning for sustainable trade prosperity Emphasises hinterland connections in road, rail Lays ground for greater private sector investment Promotes entrepreneurial behaviour from individual ports and their cities Port of Melbourne

8 Back to the future Mt Isa – Townsville Supply Chain 1,000 kms, minerals and agriculture, highly prospective $8 billion pa port in Queenslands third biggest city No planning attention, no strategic investment, fragmented supply chain Not a govt plan: local industry, rail port, community-led and funded Final report released end April 2012 – gives forward planning and investment momentum to city and port Isa rail line

9 Back to the future 50-year freight infrastructure plan permits strategic civic planning of the port and freight task in Townsville, increases global investment interest As in 19 th century: plan allows locals to see importance of $8 billion + pa port precinct Federal and State planning proves woeful Moral: individual ports and city planning is the future, not higher governments

10 Going further Future investment in ports and freight for road, rail will need to be sourced from private capital Global capital is plentiful for the right projects Its not just port privatisation – road and rail improvement and planning must be part of the deal Closer than you think –reforms afoot Individual port and city entrepreneurialism the key – higher governments cannot pull this off!

11 Thank you M: Luke Fraser E: S: lukeatjuturna W:


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