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The North Queensland Regional Supply Chain (NQRSC) consists of the corridor between Mount Isa and Townsville. It is a combination of multiple supply chains each with differing volumes of output up to1000 kilometres long. The NQRSC supports the resources sector with inputs such as fuel that is needed to extract the various minerals across the corridor and transport them to the Port of Townsville. It also facilitates agriculture through movements of grain and livestock throughout North Queensland. The NQRSC incorporates road, rail and shipping transport modes. Supply chain efficiencies across these modes are maximized through effective planning and coordination through good working relationships between producers and infrastructure owners. Negotiating with multiple stakeholders and service providers can be complex and the Queensland Government is progressively implementing initiatives to improve coordination on the NQRSC. This information sheet provides general advice on accessing supply chain infrastructure to export commodities through the Port of Townsville by road and rail. A better understanding of coordinating NQRSC planning with infrastructure owners and service providers sets the pathway to improved supply chain operations. ACCESSING SUPPLY CHAIN INFRASTRUCTURE The NQRSC contains a mix of public and private infrastructure owners. It incorporates local government owned roads, highways and major roads controlled by the Queensland Department of Transport and Main Roads (TMR), rail infrastructure owned by Queensland Rail (QR), and the Port of Townsville. There are also a number of transport operators that currently provide logistical services along the NQRSC. These operators each play an important role within the entire supply chain, where they are largely integrated to move products from the source through to markets. By its very nature the effort to transport commodities as efficiently as possible needs to be accompanied with the multiple owners/operators, all of which seek access to the corridor’s infrastructure to move their product. This means that both regulatory and voluntary protocols for accessing infrastructure have been established to promote overall efficiency on the corridor. As a basic rule, it is important to engage with infrastructure owners as early as possible to determine what information is required. For example, access to road infrastructure can take around three months if relevant information is provided. Applications that include both road and rail can take much longer if information is not provided in a coordinated manner. NORTH QUEENSLAND RESOURCES SUPPLY CHAIN

North Queensland Resource Supply Chain - Accessing supply ... · In order to achieve this export movement, the following are required:This • Product receival and storage services

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Page 1: North Queensland Resource Supply Chain - Accessing supply ... · In order to achieve this export movement, the following are required:This • Product receival and storage services

The North Queensland Regional Supply Chain (NQRSC) consists of the corridor between Mount Isa and Townsville. It is a combination of multiple supply chains each with differing volumes of output up to1000 kilometres long.

The NQRSC supports the resources sector with inputs such as fuel that is needed to extract the various minerals across the corridor and transport them to the Port of Townsville. It also facilitates agriculture through movements of grain and livestock throughout North Queensland.

The NQRSC incorporates road, rail and shipping transport modes. Supply chain efficiencies across these modes are maximized through effective planning and coordination through good working relationships between producers and infrastructure owners.

Negotiating with multiple stakeholders and service providers can be complex and the Queensland Government is progressively implementing initiatives to improve coordination on the NQRSC.

This information sheet provides general advice on accessing supply chain infrastructure to export commodities through the Port of Townsville by road and rail. A better understanding of coordinating NQRSC planning with infrastructure owners and service providers sets the pathway to improved supply chain operations.

accEssing supply chain infrastructurE TheNQRSCcontainsamixofpublicandprivateinfrastructureowners.Itincorporateslocalgovernmentownedroads,highwaysandmajorroadscontrolledbytheQueenslandDepartmentofTransportandMainRoads(TMR),railinfrastructureownedbyQueenslandRail(QR),andthePortofTownsville.

TherearealsoanumberoftransportoperatorsthatcurrentlyprovidelogisticalservicesalongtheNQRSC.Theseoperatorseachplayanimportantrolewithinthe entire supply chain, where they are largely integrated to move products from the source through to markets.

Byitsverynaturetheefforttotransportcommoditiesasefficientlyaspossibleneedstobeaccompaniedwiththemultipleowners/operators,allofwhichseekaccesstothecorridor’sinfrastructuretomovetheirproduct.Thismeansthatbothregulatoryandvoluntaryprotocolsforaccessinginfrastructurehavebeenestablishedtopromoteoverallefficiencyonthecorridor.

Asabasicrule,itisimportanttoengagewithinfrastructureownersasearlyaspossibletodeterminewhatinformationisrequired.Forexample,accesstoroadinfrastructure can take around three months if relevant information is provided. Applicationsthatincludebothroadandrailcantakemuchlongerifinformationisnot provided in a coordinated manner.

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BERTHS BULK & BREAK BULK PORT OF TOWNSVILLE 1 Berth 1 (Bulk Liquids) 12 Queensland Nickel 34 Townsville Bulk Storage & Handling A Lennon Drive Gates (Card Access Only) 2 Berth 2 (Bulk Commodities) 13 BHP Billiton Cannington 35 NSS Equipment Hire B POTL Engineering Building 3 Berth 3 (Containers & Bulk Commodities) 14 CuDeco 36 NSS Bulk Storage C POTL Administration Building 4 Berth 4 (Containers & Bulk Commodities) 15 Incitec Pivot

MARINE INDUSTRIES D Hubert Street Gates (Card Access Only)

7 Berth 7 (Bulk Minerals) 16 Cement Australia E Benwell Road Gates (Visitor Access) 8 Berth 8 (Bulk Minerals) 17 Glencore 37 Common User Facility F Nexus Business Park 9 Berth 9 (Bulk Sugar & Bulk Commodities) 18 Incitec Pivot PDC 38 Rosshaven Marine G Environmental Park

10 Berth 10 (Passengers, ADF & Commodities) 19 SimsMetal 39 Pacific Marine Group H Eastern Reclamation Area 11 Berth 11 (Bulk Minerals) 20 QLD Sugar (Bulk Sugar Sheds 1 & 2) 40 AIMS I Quayside Terminal & Café

21 QLD Sugar (Bulk Sugar Sheds 3) 41 Harbourside Coldstores TOWNSVILLE LANDMARKS 22 Ravensdown 42 Townsville Ross River Marina

BULK LIQUID TRANSPORT & OTHER J Palmer Street K Flinders Street

23 Wilmar (Molasses) 43 Australian Defence Forces L Jupiter’s Hotel & Casino 24 BP Bitumen 44 Queensland Rail M Townsville Entertainment Centre 25 Coogee Chemicals 45 Maritime Safety Queensland N Townsville Maritime Museum 26 Origin Energy 46 Curtain Bros. O ReefHQ 27 Orica 47 SeaLink 28 Shell 48 Riverside Marina 29 Queensland Nickel

PORT CONTROL TOWER 30 Caltex 31 BP 49 Mission To Seafarers

STEVEDORES & LOGISTICS Drinmore Services NSS

32 NSS Container Terminal Seaway 33 NSS Logistics Swire Shipping

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North QueeNslaNd resources supply chaiN

Page 2: North Queensland Resource Supply Chain - Accessing supply ... · In order to achieve this export movement, the following are required:This • Product receival and storage services

PROCESS In order to achieve this export movement, the following are required: • Roadtransporttotheportorarailhead • ProductreceivalandstorageservicesatPortofTownsville • Astevedoringservicetoloadthevessel • AshippingservicefromTownsvilletothedestination

KEY CONTACTS Department of Transport and Main Roads Townsville [email protected] Ph:0744218700

Department of Transport and Main Roads Cloncurry [email protected] Ph:0747693200

ADDITIONAL RESOURCES •Guidelines for Assessment of Road Impacts of Development www.tmr.qld.gov.au/business-industry/Technical-standards- publications/Guidelines-for-assessment-of-road-impacts-of- development.aspx

ThisprocessappliesifthecommodityistransportedbyroadtoarailheadordirectlytothePortofTownsville.Bothcouncilandstate-controlledroadsarecoveredduetothepotentialtonegotiatewithbothlevels of government.

Forsomeproducers,particularlyminingoperations,theoutputwillbeinitiallysmallvolumes.Itisnotuncommontogenerallybeginbymakinguseofroadtransportpredominatelyduetoitsavailability,flexibilityand frequently cost advantage over rail at small volumes e.g. less than 50,000tonnesperannum.

SeekingaccessapprovalsfromroadownerscanbeaidedbyincludingengagementwiththePortofTownsville(andQRwhereapplicable).Presentingthe‘wholepicture’simultaneouslytoinfrastructureownerscan facilitate a coordinated response across transport modes, and subsequentlystreamlineapprovalprocesses.

Notifiable Road UseIfthevolumetobeexportedislessthan:

• 50,000tonnesonaTMRroad • 10,000tonnesonalocalgovernmentroad,therearenoadditional road access approvals required.

Ifthevolumeisgreaterineitherofthesecases,aNotifiableRoadUseundertheMineralResourcesAct(1989)exists.Thisrequirestheproducer to negotiate with the road owners on ways to minimise impacts on their network.

Theproduceristocontacttherelevantroadowners,whothenstipulatewhatinformationisrequiredtoprogresstheapplication.Commonly,theproducerengagesanengineeringconsultanttodevelopaTrafficManagementPlanandaRoadImpactAssessmentreport.

Bothofthesedocumentsareusedasabasisfornegotiatingwhatnewroadinfrastructuretheproducerisrequiredtoprovidebeforeaccessisgranted.Similarly,whatlevelofcompensationisrequiredfortheincreasedroaddamageisalsoassessed.Onceboththeproducerandroadowner/sreachagreement,accessisgranted.Theagreementislegallybindingandenforceable.

Co-ordinated ProjectsAprojectthatissubjecttoanEnvironmentalImpactStatement(EIS)isdeclaredasaCo-ordinatedProject.TheproducerortheCo-ordinator-GeneralmayinitiatethedeclarationofaCo-ordinatedProject.

TheadditionalinformationrequirementsareoutlinedwithintheEIS’sTermsofReference.Generallyanassessmentofalltransportimpactsisrequired, with the road component requiring a traffic management plan androadinfrastructureimpactassessment.IftheEISisapproved,theproducer is required to meet any further requirements such as entering into infrastructure provision and/or compensation agreements with road owners.

ThisprocessappliesifthecommodityistransportedbyrailtothePortofTownsville.

Railofferslowertransportcostsoverlongerdistancesandinbulk.Avolumeofaround600,000tonnesperannumisneededforthreefulllengthbulktrainsperweek,arealisticminimumforefficientbulkmineralhaulage.Withlowervolumes,raillinehauloptionsbasedoncommoditiesincontainerscanbeconsidered.Thesecanusethesamecontainers,loadingarrangementsandroadtransporttorailhead(ratherthantoport)thatmaybeinplacefromanexistingroadoperation.

Oftenthereisaneedtoinitiallytransportaproductbyroadtoarailsiding.Thereforeacoordinatedengagementwithroadinfrastructureowners is as important as engagement with rail providers.

Above- rail operators with QR authorisationTherearemanywaysinwhichapotentialrailcustomercanseekproposal or quotations for a rail service – calling tenders, seeking Expressions of Interest or direct negotiation.

AurizonandPacificNationalcurrentlyoperateontheNQRSC,reflectingtheauthorisationgrantedbyQRtooperateonitsinfrastructure.Whereacommercial arrangement is successfully negotiated with either operator, a rail haulage agreement is entered into.

Above- rail operators without QR authorisationAproducermaywishtoenterintoacommercialhaulageagreementwithanoperatorthatdoesnotcurrentlyhavebelow-railauthorisationfromQR.

Export arrangEmEnt with road transport

Export arrangEmEnt with rail

Page 3: North Queensland Resource Supply Chain - Accessing supply ... · In order to achieve this export movement, the following are required:This • Product receival and storage services

PROCESS In order to achieve this export movement, the following are required: • Railtransporttotheport,requiringanabove-railtrainoperator andrailaccessfromtherailnetworkowner(QR) • ProductreceivalandstorageservicesatPortofTownsville • Astevedoringservicetoloadthevessel • AshippingservicefromTownsvilletothedestination

KEY CONTACTS QR Access & Business Strategy Team Email: [email protected] Ph:0730723632

ADDITIONAL RESOURCES •QR Network Access Undertaking http://www.queenslandrail.com.au/NETWORKSERVICES/ ACCESSANDREGULATION/Pages/CurrentUndertaking.aspx

PROCESS In order to achieve this export movement, the following are required: • ProductreceivalandstorageservicesatPortofTownsville • Astevedoringservicetoloadthevessel • AshippingservicefromTownsvilletothedestination

KEY CONTACTS Townsville Port Business Development Team Ph:0747811552 www.townsville-port.com.au

ADDITIONAL RESOURCES •Planning and development approvals http://matrix.townsville-port.com.au/business-with-the-port/ services/planning-and-development-approvals

•Port Expansion Project Environmental Impact Statement http://matrix.townsville-port.com.au/port-development/ infrastructure/EIS

MapandphotosareprovidedcourtesyofPortofTow

nsvilleLtd

TheoperatorwillneedtoobtainanAccessAgreementwithQR.TheprocessisoutlinedonQR’swebsitealongwiththerequiredforms:http://www.queenslandrail.com.au/NetworkServices/AccessandRegulation/Pages/Access.aspx.

Thiscanbenegotiatedinthreeways: • RailoperatorsseekaccessdirectlyfromQR

• theProducerandtheirpreferredrailoperatorjointlyapproach QRseekingaccesstotherailnetwork

• theProducerapproachesQRdirectlytogainaccesstotherailnetwork

WherearailoperatorisunabletonegotiateaccesswithQR,theProducercanrecommencetheprocesswithanotheroperatororelecttoundertakehaulagebyroad(ifapprovalisgrantedbyroadinfrastructureowners).

Export arrangEmEnts at port of townsvillEBecauseofthenumberofserviceproviderswithintheportprecinct,theprocess for seeking receival/storage, loading and shipping can take a multitudeofavenues.Whiletherearemultiplecombinationsofproducttransport,receiving/storage,berth,andvessel,itislikelythatnotallarefeasiblee.g.incompatibilityofshipandberthcapability,absenceorincompatibilityofloadingfacilitieswiththevessel,orlackofrailfacilitiesnearapreferredberth.

ThePortofTownsvillecangenerallyactasakeycontactpointforproviding advice and information for producers seeking services within the port precinct.

Thisincludes: • Adviceonrecommendedlogisticsandstorageandforthecommodity beingexported,givenintendedtotalannualtaskandanticipated shipment parcel size • Offeringofpilotageservices • Adviceonstevedoringandshippingservices,agentsandotherport servicesuppliers(includingberthing)

ThePort’sBusinessDevelopmentTeamisthedesignatedcontactpointforprovidingbothimportandexportadvice.Asanadditionalguide,producerscanutilisethefollowingwebtooltoidentifyserviceoptionstomeet their needs.

http://www.townsville-port.com.au/business-with-the-port/trade-statistics/new-customers-decision-tree

AmapillustratingthePort’ssupplychainservicesisonthefollowingpage.

Leasing of landThePortalsooffersopportunitiesforlandparcelsforavarietyofuseswithinitsprecinct.Currentopportunitiesareillustratedwithintheinteractive map located at: http://www.townsville-port.com.au/business-with-the-port/trade-statistics/leasing-opportunities

FurtherinformationcanbeobtainedfromthePort’sBusinessDevelopmentTeam.

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BERTHS BULK & BREAK BULK PORT OF TOWNSVILLE 1 Berth 1 (Bulk Liquids) 12 Queensland Nickel 34 Townsville Bulk Storage & Handling A Lennon Drive Gates (Card Access Only) 2 Berth 2 (Bulk Commodities) 13 BHP Billiton Cannington 35 NSS Equipment Hire B POTL Engineering Building 3 Berth 3 (Containers & Bulk Commodities) 14 CuDeco 36 NSS Bulk Storage C POTL Administration Building 4 Berth 4 (Containers & Bulk Commodities) 15 Incitec Pivot

MARINE INDUSTRIES D Hubert Street Gates (Card Access Only)

7 Berth 7 (Bulk Minerals) 16 Cement Australia E Benwell Road Gates (Visitor Access) 8 Berth 8 (Bulk Minerals) 17 Glencore 37 Common User Facility F Nexus Business Park 9 Berth 9 (Bulk Sugar & Bulk Commodities) 18 Incitec Pivot PDC 38 Rosshaven Marine G Environmental Park

10 Berth 10 (Passengers, ADF & Commodities) 19 SimsMetal 39 Pacific Marine Group H Eastern Reclamation Area 11 Berth 11 (Bulk Minerals) 20 QLD Sugar (Bulk Sugar Sheds 1 & 2) 40 AIMS I Quayside Terminal & Café

21 QLD Sugar (Bulk Sugar Sheds 3) 41 Harbourside Coldstores TOWNSVILLE LANDMARKS 22 Ravensdown 42 Townsville Ross River Marina

BULK LIQUID TRANSPORT & OTHER J Palmer Street K Flinders Street

23 Wilmar (Molasses) 43 Australian Defence Forces L Jupiter’s Hotel & Casino 24 BP Bitumen 44 Queensland Rail M Townsville Entertainment Centre 25 Coogee Chemicals 45 Maritime Safety Queensland N Townsville Maritime Museum 26 Origin Energy 46 Curtain Bros. O ReefHQ 27 Orica 47 SeaLink 28 Shell 48 Riverside Marina 29 Queensland Nickel

PORT CONTROL TOWER 30 Caltex 31 BP 49 Mission To Seafarers

STEVEDORES & LOGISTICS Drinmore Services NSS

32 NSS Container Terminal Seaway 33 NSS Logistics Swire Shipping

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AsatMarch2014