1. Gippsland Ports

2. Presentation to S E A T S 18 August 2011

3. Committee of Management for five local ports: Anderson Inlet Corner Inlet & Port Albert Gippsland Lakes Snowy River Mallacoota Waterways Manager: Shallow Inlet Lake Tyers Staff: Located at Bairnsdale, Paynesville, Lakes Entrance & Port Welshpool Employees: 50 Waterway area : 1400 sq kms Distance west to east: 400 kms

4. Port infrastructure planning and development. Wharves, piers, jetties & marinas Berthing & mooring Navigation, port operations, regulation & compliance Incident management, emergency response, maritime security Oil spill response & salvage Dredging & sand management Boatyards & Slipways Governance & business management Key service areas

5. Consistent with our role in Victoria’s transport system, Gippsland Ports will: “Promote safe waterways and economic prosperity through enhanced provision of services to all port users, in a sustainable manner.” Vision:

6. Strategic Objective & Goal Outcomes Organisational Capability Goal: To ensure financial sustainability to deliver strategic outcomes and plan for the future.  Management Agreement provides funding to cover recurrent operations, including CPI, plus Capital renewal, Maritime Security Act responsibilities and SEMPs.  Management Agreement provides scope for Gippsland Ports to generate external income Operational Effectiveness Goal: To effectively manage our resources, assets and waterways  Plans are developed to accommodate existing usage and projected growth for all Ports  Existing infrastructure remains operationally effective and safe,  Navigation aids are maintained and dredging is performed in accordance with TSV standards/regulations  Historic navigability maintained in all channels Port Access Goal: To provide access for commercial, recreational and tourism vessels to our ports and waterways  Long term dredging service contract is secured  Enduring environmental permits and consents for dredging and sand management are obtained.  Existing infrastructure remains operationally effective and safe,  Navigation aids are maintained and dredging is performed in accordance with TSV standards/regulations  Historic navigability maintained

7. Strategic Objective & Goal Outcomes Customer Service Goal: To continuously improve our service to customers  Improved level of positive responses from customer survey relative to previous survey/s  Customer feedback is acknowledged within 2 business days  All feedback issues closed out within advised timeframe  Website reviewed,  Online services maintained on website (cameras, monitoring information etc) Deliver Value to the Victorian Government Goal: To ensure that ports and waterways operational outcomes are consistent with Victorian government objective  Port access maintained to facilitate commercial and recreational users(economic)  Environmental Management Plan is developed for each Port  Gippsland Ports takes proactive role in engaging with other agencies to improve coordination and outcomes for Port users  SEMPs is reviewed and recertified in accordance with DoT timetable  Revised fees and charges regime is agreed and implemented

8. Strategic Objective & Goal Outcomes Integrated Port Planning and Development Goal: Contribute to environmentally sustainable regional development  Growth plan for all Ports is developed in context of planning processes by other agencies and Gippsland Ports’ Environmental Management Plan. Corporate Governance Goal:To continue to improve the performance and accountability of the organisation Integration of the organizational risk management system is completed Document management system is implemented Appropriate financial management system is identified and implemented Training and recruitment ensures organizational skills are consistent with organisational requirements All position descriptions are reviewed

9. Organisational Chart

10. plays a major role in facilitating and supporting commercial, recreational and tourism economic activity through the management of Crown assets and infrastructure is a key agency in servicing the needs of recreational and commercial users of ports, waterways and associated land based infrastructure is an efficient “can do” organisation with a highly capable and motivated Board and management. has a high level of technical expertise in all facets of its operations has a demonstrable capacity to deliver projects has a history of success in attracting grant funding from alternate sources to DSE / DOT funding has commissioned independent research of customers /port users which reflects very positively on Gippsland Ports’ performance and negatively on the shortcomings of facilities and services Key strengths:

11. Current Operating Grant funding inadequate to meet statutory, regulated and community service obligations Current funding arrangements are ad hoc, unpredictable and reliant upon grants Need for a sustainable funding model that provides for strategic management and funding levels consistent with scale, scope and diversity of functions. Dependence on project based funding is inconsistent with strategic business management, programmed asset maintenance, attraction and retention of skilled personnel and forward planning Funding streams provide no recognition of increased demand for coastal marine infrastructure through net migration to region of approx 1.5% p.a. Overlap / lack of consistency in responsibilities for coastal infrastructure Opportunity for integrated facility management Variability in maintenance standards Planning impediments – eg: LSIO Overlay, Bullock Island - historic planning overlay frustrating ability to apply for planning permit. Key issues:

12. EGS / GP MOU – - GP sees as a valuable and important tool - Not working as effectively as it might - Could be reworked to more clearly articulate respective party views on coastal & marine infrastructure management - Could be reworked to articulate respective agency positions and expectations in respect of future developments. Boating Coast Action Plan – - Important instrument for purpose of attracting future Govt funding for infrastructure development - GP and EGS representing a cohesive and consistent position - GP has some initial concerns as to Boating CAP not going far enough in providing adequate case for future development - no further action at this stage pending receipt of updated draft Key issues:

13. Notes: * Includes $1.06m transferred to GLOA Program as part of business case **This funding is $1.0m less than budgeted, 2011/12 funding is 8.3% less than 2009/10 levels exclusive of CPI increases. Current Management Agreement provides for no CPI increase (therefore successive reductions in real terms) Gippsland Ports is constrained in increasing self generated income through legislative and regulatory constraints Budgeted Funding stream (excl. LESMP) 2009/10 ($m) 2010/11 ($m) Draft 2011/12 ($m) Recurrent Local Ports Grant4.34*3.363.95 Asset Maintenance & SEMPs0.990.55- Gippsland Lakes Ocean Access (GLOA)-3.773.52 Port Upgrade (Infrastructure Renewal)2.342.652.00** Total grant funding:7.6710.339.47 Key issues:

14. Wharves, piers and jetties (approximately 100)

15. Key Issues: Ageing infrastructure with no strategic replacement plan Need for comprehensive asset condition assessment to provide informed basis for maintenance and capital works Current dependency on ad hoc funding for maintenance and capital works Urgent need for sewage pump-out and on-water refuelling facilities on Gippsland Lakes Emerging need for larger commercial capability at Port Welshpool & Lakes Entrance Demonstrable growing demand for facilities arising from increased recreational boating activity (4.5% compound annual growth in boating registrations in East Gippsland) Agency consent processes inhibit timely works Compliance issues e.g.: DDA, fire services etc. Wharves, piers & jetties

16. Berthing and Mooring 900 (approx) berths and moorings

17. Key Issues: Demand exceeds supply (all locations) Demand for serviced berths (water, electricity, improved security) Size of vessels increasing – some current infrastructure unsuitable Recent floating jetty installations very well received Need to upgrade for compliance (e.g. DDA, Fire service etc) and roll out fire service on existing structures Need for strategic maintenance and replacement Availability of infrastructure a factor in net growth of coastal communities. Fees currently collected on permanent berths and moorings are based on historic levels for older infrastructure and Crown Land rental value plus ROI on new infrastructure Berthing & mooring

18. 750 Navigation aids in 5 Ports and 2 waterways Navigation, port operations, regulation & compliance

19. Key Issues: Increasing cost of maintenance and replacement (esp. major and medium buoys) Servicing costs would be reduced through upgrading and replacement Gippsland Ports provides public access via website to valuable maritime safety data (hydrographic surveys and monitoring [wave height, tide, entrance cameras] associated with LESMP) These monitoring services are unfunded beyond June 2011 Gippsland Ports facilitates increased commercial operations at Corner Inlet & Lakes Entrance (Eastern wharf, Bullock Island Wharf, Barry’s Beach and Port Anthony) Increasing customer expectations; eg: water, electricity, Navigation, port operations, regulation & compliance

20. Monitoring information available on Gippsland Ports’ website www.gippslandports.vic.gov.au

21. Key Issues: Victorian Government “Keeping the Entrance Open” (“Moving Forward” Policy Nov 05), $31.5m to Lakes Entrance Sand Management Program LESMP is comprised of 6 interrelated projects, concluding June 2011 Victorian Government has committed to ongoing TSHD campaigns Increasing environmental group interest in dredging activities may result in Regulators imposing requirement to undertake further environmental effects research – potential for unfunded costs and delay in dredging program. Requirement for dredging in locations other than Lakes Entrance but resources insufficient to do so (Lewis Channel, Toora, McLoughlin, Middle Ground) Dredging and sand management

22. Dredging & sand management LESMP ProjectTimeline Project A – Replacement of dredge Sandpiper 2005 - 2007 Project B – Sand Bypass Trial (Western Discharge pipeline) 2007 - 2010 Project C – Trailing Suction Hopper Dredge (TSHD) Trial and 2009 Campaign 2007 – 2008 & 2009 Project D – Future Dredging Options 2010 - 2011 Project E – Sand Transfer System Upgrade 2007 - 2010 Project F - Monitoring 2005 - 2011

23. Key Issues: Maritime Security Plan responsibilities under the Maritime Transport and Offshore Facilities Security Act 2003 (C’wealth) attract no funding but significant costs Gippsland Ports provides emergency response on a regular basis (flood events, storm events, collisions, overturns, damaged vessels) Gippsland Ports has a presence, expertise and equipment not available through other agencies Gippsland Ports recognised as the “go to” organisation by the public These functions not specifically funded but important and essential community service functions Incident management, emergency response, maritime security

24. Key Issues: Standby capability maintained through a service agreement with Marine Safety Victoria Gippsland Ports has a presence, readiness, expertise and equipment not available through other agencies No other ‘on the spot’ agencies between Westernport and Eden (NSW) distance 500km approx Salvage performed only as emergency response not as a commercial venture Oil spill response and salvage

25. Self funded business unit Boatyards and Slipways

26. Key Issues: Strategically important to local economies through support for commercial fishing and marine based industries Synergistic to Gippsland Ports other functions as waterways manager Good complementary use of Gippsland Ports foreshore depot facilities, infrastructure and expertise Boatyard staff provide back-up for Gippsland Ports personnel for activities in peak demand, for specific projects and for emergencies Strong environmental and OHS credentials e.g., only facilities with waste water treatment Setting industry standards for OHS, environmental compliance, emissions and waste treatment Boatyards and slipways at Lakes Entrance, Paynesville and Port Welshpool allow public to work on own vessels Important community service function, attracting a high level of customer survey response satisfaction Boatyards and Slipways

27. The trend of increasing use and demand for services will continue Current funding is insufficient for Gippsland Ports to fulfil the legislated and regulated functions set for Gippsland Ports by Government. There is a demonstrable need for a sustainable funding model that adequately provides for the range of statutory, regulated and community service functions Current legislation under which Gippsland Ports operates constrains its ability to generate fee for service income in areas of competitive strength Gippsland Ports is efficient, effective and can deliver – needs to be provided with the means to do so Key issues

28. Paynesville Marine Industry Precinct and Boatyard Planning- Interagency planning in progress. Paynesville Progress Jetty – Concept planning for staged redevelopment (supported by East Gippsland Shire’s adopted Paynesville Town Centre Structure Plan) Paynesville McMillan Strait Transient Jetties – concept planning for floating jetty redevelopment south of Fishermans Wharf (supported by East Gippsland Shire’s adopted Paynesville Town Centre Structure Plan). Possible Transport Safety Victoria future grant opportunity. Paynesville McMillan Strait. – Concept planning for jetty redevelopment adjacent to the boatyard in conjunction with Paynesville Boatyard planning. Includes definition of McMillan Strait clear navigation channel. Will form basis from Gippsland Ports perspective for Committee of Management rationalisation in the marine industry precinct. Loch Sport Mooring (Deepwater) Jetty – Preliminary planning involving community interest groups and agencies for the redevelopment of this major jetty on a new footprint is completed. A planning permit application is pending. The rebuild is being funded from the 10/11 Port Upgrade program. Paynesville & Loch Sport future developments:

29. Metung Wharf – Concept planning for future extensions to Metung wharf. Bullock Island – Refining concept plans, in progress, for development of boatyard and depot extensions within recently appointed Committee of Management area. Lakes Entrance Boat Harbours – Previously developed concept plans refined for planning and staged redevelopment purposes. Lakes Entrance Slipway Site Redevelopment – No further work on concept plan at this stage. Brief for feasibility study being prepared. On Water Fueling and Sewage Pump Outs – Further work on strategic justification to satisfy Department of Transports requirements in progress by NEXUS Consulting. Study will remain underpinning document supporting application for and procurement of grants for priority infrastructure. Lakes Entrance & Metung future developments:

30. Port Welshpool – Continued advocacy to South Gippsland Shire for the development of a foreshore management plan. Given Gippsland Ports interests at Port Welshpool, competing potentially incompatible uses and industry requirements there is an urgent need for planning framework certainty on the Port Welshpool Foreshore. Port Welshpool Roll on Roll off Wharf and Marginal Wharf crane access upgrades – Concept plans for infrastructure development, primarily to meet Tek OCEAN’S requirements have not been developed any further pending an understanding being received of its current requirements and some funding opportunity being obvious. Long Jetty rehabilitation – State govt commitment to rehabilitation of Port Welshpool Long Jetty for pedestrian use, $3m funding commitment. South Gippsland future developments:

31. Loch Sport Mooring Jetty Proposed Reconstruction

32. Progress Jetty Paynesville Staged Redevelopment Concept

33. Slip Road Paynesville Masterplan

34. Slip Road Paynesville Masterplan – Burrabogie Island

35. Paynesville Boatyard Proposed Additional Berthing

36. Draft McMillan Strait Redevelopment Plan

37. McMillan Strait Paynesville Proposed Additional Transient Berthing

38. Slipway Redevelopment Lakes Entrance

39. Lakes Entrance Boat Harbour Redevelopment Concept

40. Metung Wharf Expansion

41. Thank you.