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ENGINEERS AUSTRALIA

Accommodating Trade Growth at Fremantle Ports

Chris Leatt-Hayter, Chief Executive Officer

Our Focus

to facilitate trade

to ensure efficient and cost effective facilities and services that satisfy user needs

to plan for the future growth and development of the port

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Western Australia’s major general

cargo port

383 sq kms of coverage

Private and public investment and

service provision

Inner Harbour, Fremantle

Outer Harbour, Kwinana

(5 jetties, 3 privately operated

and associated with major

industrial complexes)

Our Business

Significant break bulk including steel, agricultural and mining machinery

Inner Harbour......

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Handles Most of WA's Container Trade

Inner Harbour......

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Large carriers bring 4,500 new vehicles to Fremantle in one shipment

also cruise shipping – one of the fastest

growth sectors of the tourism industry

Outer Harbour - Kwinana – Private Jetties

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CBH Grain Jetty

BP Oil Refinery

Alcoa Alumina Refinery

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Kwinana Bulk Terminal

Kwinana Bulk Jetty

Outer Harbour – Kwinana – Fremantle Ports

Handles mineral sands, cement clinker,

fertilisers, LPG, silica sands, sulphur,

iron ore and other commodities

Fremantle Ports Trade Profile

WA biggest general cargo port

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• of WA’s seaborne imports

80% by value

• of WA’s seaborne exports

23% by value

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Inner Harbour Port Development Plan

Inner Harbour Port Development Plan released in 2000 after significant consultation with port users and stakeholders

The Plan presented a vision for development of the Inner Harbour over a 20 year period in 3 stages

The Plan has been successful and has guided our development program

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Draft Port Development Plan for Inner Harbour Stage 3 - by 2017

Strategies to deliver growth

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The Right Infrastructure

Berth and stacking space for break bulk trade

Berth length for container terminals

Additional storage for motor vehicles

Inner Harbour Deepening

Port Operational land -Approx 27ha of land becoming available in late 2010

North Quay Rail Terminal Extension

Additional container and general cargo port facilities planned for Kwinana

Why did we deepen?

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The trend towards bigger ships is impacting on ports worldwide, particularly where there are draft constraints

Emma Maersk – one of the world’s largest container ships

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Benefits of deepening

Larger ships can call fully loaded

WA business continues to have access to major

container shipping services

Competitive freight rates will benefit importers /exporters

and consumers

Larger, more modern cargo ships

Improved efficiency in fuel consumption

Inner Harbour Deepening and Berth Works Project

Value $250 million

Project Components •Demolition and Reconstruction of Berth 10 for container shipping use. •Strengthening of Berth 4 – 9 to accommodate larger cranes and ships. •Construction of a 1,000m long seawall at Rous Head. •Dredging of the Inner Harbour and Deep Water Channel to handle larger ships. •Reclamation of 27 Hectares of land behind the new seawall for port industry uses.

Timeframe Dredging Phase 1: January 2010 – March 2010 Dredging Phase 2: August 2010 – November 2010 Berth Construction Phase April 2009 – April 2011

Contractors Package 1 (Civil and marine works): Thiess Georgiou Joint Venture Package 2 (Dredging and reclamation works): Boskalis Australia Pty Ltd

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Berth Works

Stage 1 handed over 30th June 2010

Stage 2 completed late 2010

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Remaining Stages 1 to be completed by April 2011 18

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Berth 10 reconstruction was completed in April 2010

Phase 2 dredging – cutter suction dredge

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Phase 2 dredging – hopper dredge

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About two thirds of the dredged material from the Inner Harbour has been deposited at Rous Head

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Reclamation works

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Inner Harbour Deepening

Project nearing successful completion

Environmental conditions complied with

Expenditure within Budget

Ships already utilising additional depth

Reclamation area

Rous Head reclamation area – Additional Land for Port Operational Purposes

The 27-hectare site has been created northwest of existing Rous Head Industrial Park as part of Fremantle Ports’ Inner Harbour deepening project

The reclaimed land is equivalent to about 20 per cent of the existing North Quay/Rous Head precinct. Its availability represents a significant opportunity to improve trade efficiency and for future port growth

A concept plan for the Rous Head/North Quay precinct developed to guide development towards a desired future layout

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Concept Plan

The plan has been based on:

providing essential services to the working port and enhancing supply chain requirements

providing adequate capacity for the Inner Harbour’s future trade

providing for lot sizes which support an efficient scale of operations

maximising the separation of public and heavy vehicle traffic within the port precinct

co-locating facilities that have high degrees of traffic interaction (eg. container terminals and container parks) to promote more efficient transport movements

establishing a heavy vehicle precinct to facilitate the use of high productivity vehicles

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Initiatives to Address Inner Harbour Landside Issues

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Put more freight on rail

Improve road transport efficiency

Improve existing road and rail links

Provide additional road freight links

Landside Initiatives

Strategies

Roads/Container Parks 1.Enhanced truck productivity : continued improvements to

VBS : multi purpose trips (two way

running) 2. Better systems :link container parks to VBS :communication systems 3. Spread operating hours :stevedore terminals :container parks :staging 4. Improved road network 5. Port planning for reclaimed land

(supportive land uses)

Rail

1.Operational improvements :extension rail terminal and line on

North Quay :track upgrades and extra passing loops :direct access to both stevedores 2.Enhanced community amenity :reduced rail noise :double stack trains :other encroachment issues 3. Funding :realistic and reducing rail subsidy

through increasing scale of operations

4.Commercial :shipping companies to consign

direct to inland hub

Inland Facilities

1.Operational enhancements :establishment of rail/road and road/road terminals adjacent to importers and exporters :terminals to include container parks 2.Planning initiatives :identified land areas and freight corridors to be protected/ reserved 3.Commercial :bills of lading and bonded areas

Road/rail market shares

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Road 9

8%

, 324

Road 9

7%

, 354

Road 9

3%

, 375

Road 9

4%

, 409

Road 9

5.5

%,

426

Road 9

0%

, 4

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Road 8

7%

, 503

Road 8

5%

,480

Road 8

9%

, 496

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mb

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per

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Transport Corridor Planning

The Perth metropolitan region is growing and pressure on land is forcing development into increasingly close proximity to intermodal facilities including ports and transport corridors.

The forces behind this include increasing population, rising land values, perceived land scarcity, pressure from the land development sector and in some cases inadequate planning.

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Rail Freight Line – Little High Street, Fremantle

Residential Apartments 2.5 – 25m from rail

freight line.

Rail Freight Line

Urban Encroachment on Primary Rail Freight Route

Rail Freight Line – South Beach Development, North Coogee

Rail Freight Line

Residential Apartments 17 – 29m from freight rail line.

Urban Encroachment on Primary Rail Freight Route

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Accommodating trade growth Fremantle Ports’ Kwinana Quay

Fremantle’s Inner Harbour expected to reach optimal capacity before 2020

Additional container and general cargo port facilities planned for Kwinana - alternative proposals exist

Inner Harbour and proposed new Kwinana facilities are likely to operate in unison

Both will be needed to provide necessary quay length

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Fremantle Ports proposed Kwinana Quay

Recreational Marina Rous Head

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boat pens, dry boat storage, ferry terminal, other maritime related activities

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cafes, restaurants, offices, retail space

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