logistics hub why the southern highlands intermodal? |
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Why The Southern Highlands Intermodal?
The primary characteristics which make an intermodal work are its location relative to a traffic base and its location relative to road and rail links. If these criteria are not met, then whatever other characteristics the terminal has will be largely irrelevant.
For import/export terminals, the traffic base is most obviously a port. Port Kembla is directly accessible via rail (grade 1 – heavy freight) and by road on the Hume Highway via Wilton.
A key element to the Southern Highland’s future success is related to support from the port stakeholders themselves.
The Port Kembla Port Corporation (PKPC) at their June 2006 board meeting agreed to pursuing strategic cooperation with the Wingecarribee Shire Council to promote the Southern Highlands intermodal concept.
A formal Memorandum of Understanding (MOU) is scheduled to be signed by the Chairman of PKPC and the Mayor of WSC on July 20 2006.
Prior to discussions with WSC, PKPC intended commissioning a study to establish an inland intermodal to support their operations as they have constraints on industrial land availability.
An inland intermodal is key to PKPC’s future success.
As to location relative to road and rail links the Southern Highlands is uniquely positioned with the Hume Highway on the west side of the intermodal zone, the main North South rail line on the east side as well as a direct line to Port Kembla, plus a rail spur line bisecting the zone.
The new M7 now provides direct access to the industrial heart of Sydney.
This is a distinct competitive advantage for the Southern Highlands over most other regional locations. ALL the major infrastructure is already in place and mostly under utilised.
To date in 2006, a number of major international logistics companies and industrial development companies are in the process of evaluating the Southern Highlands intermodal zone as a potential location to establish their operations.
There is some anecdotal evidence to suggest that the Southern Highlands has already been recommended as the preferred location.
Negotiations between some of these companies and land holders have already led to ‘exchange of contracts’.
These opportunities are far from being a ‘done deal’ – there are a number of issues still to be overcome.
What this does indicate is that logistics companies themselves see the strategic advantages of the Southern Highlands intermodal in relation to Port Kembla, Port Botany and Sydney.
Strategic Advantages of the Southern Highlands
• Proximity to Sydney, Canberra, Illawarra and South Coast NSW - over 25% of Australia’s total population within 2 hour drive.
• Straddles main north south national rail line
• Direct rail line (GRADE 1) link to Port Kembla port – 1.5 km trains
• Port Kembla rail trade will not impact on current main southern line – freight from Port Kembla. The intermodal only requires intermittent use of one kilometre of the main line
• Moss Vale the only east/west rail link from the Illawarra on a freight dedicated line – no priority to passenger rail
• There are no road and rail restrictions as with connections to Sydney intermodals
• Rail spur line (GRADE 1) bisecting industrial corridor already exists
• Next to Hume Highway - Sydney/Canberra/Melbourne road freight corridor.
• M7 benefits – quick direct access to Sydney’s industrial heartland
• Zone can also service Port Botany via rail and road (M5)
• Three Sydney ports closing and trade moving to Port Kembla
• Can provide a ‘whole of industry’ solution to the NSW vehicle import industry.
• Port Kembla unsuitable for long term vehicle storage
• Strategic cooperation with PKPC.
• Relatively low cost large industrial sites available – lower capital costs.
• Education facilities to support logistics industries through the University of Wollongong (the Business School specialises in logistics studies) and the establishment of an Australian Technical College campus in Moss Vale.
• Intermodal grant submissions for linking infrastructure development have been made with DOTARS under the Auslink programme.
Regional Advantages
• Provides alternative distribution channels for Illawarra industry other than having to go through Sydney.
• Provides a 100% Illawarra solution to the vehicle import industry and fosters regional employment.
• Capacity to accommodate ‘land hungry’ industries in the Illawarra such as vehicle logistics.
• Preserves Metropolitan Wollongong industrial land for higher density employment industries.
• Fulfills PKPC need for an inland intermodal hub.
• Enhances PKPC ability to develop, expand and diversify.
• Promotes regional response to future Illawarra employment and industry growth.
• Leveraging off the geographical strategic position of the Southern Highlands.
State Advantages
• Counters potential loss of vehicle cargo to Brisbane or Melbourne.
• Supports NSW ports strategy.
• Assists NSW achieve rail mode share targets from 27% to 40 %
• Reduces congestion on Sydney infrastructure - relocating vehicle import logistics will take up to 50,000 truck movements yearly off Sydney roads.
• Allows relocation of large Sydney industries that are under residential pressure, and can significantly reduce capital set up costs.
• Contributes to regional development and employment growth.
• Location well positioned to be terminus for future interstate road trains to/from Vic, S.A, W.A.
National Advantages
• Greater utilization of existing freight infrastructure, i.e. Hume Highway, main Southern rail line and the Moss Vale to Port Kembla rail line. There is NO investment required in new major infrastructure like with Sydney or the Maldon–Dombarton rail link proposal.
• Contributes to the competitiveness of other industries like Grain export by reducing the level of overhead they are required to shoulder for rail infrastructure particularly the Illawarra line
• Overall greater use of the rail infrastructure reduces costs for all users.
• Increasing Australian exports – in its MOU with PKPC the WSC has agreed to give primacy to the establishment of export industries to support the intermodal activities.
• Contributes to the competitiveness of Australian exports through improved efficiency in freight logistics.
Contributes to improved rail mode share targets.
• Supports the freight strategy of developing spur lines from the main rail lines to access regional ports and communities.
• The Southern Highlands intermodal would provide an ideal terminus for B-triple trucks and road trains between capital cities, i.e. Sydney and Melbourne/Adelaide/Perth.
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