Ports ? Australia Sector Report PORTS AUSTRALIA Produced by: Philip Orchard Head of Post Perth Western Australia Last revised February 2010 Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation and Skills and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published xxx 2009 by UK Trade & Investment. Crown Copyright © www.uktradeinvest.gov.uk Table of Contents OVERVIEW 3 OPPORTUNITIES 3 KEY METHODS OF DOING BUSINESS 4 MORE DETAILED SECTOR REPORTS 4 PUBLICATIONS 4 EVENTS 6 CONTACT LISTS 6 www.uktradeinvest.gov.uk Page 2 of 6 OVERVIEW Australia, as an island nation, is particularly dependent on the shipping industry for importing goods and exporting Australian-made products. Australia relies on sea transport for 99% of its exports. A substantial proportion of domestic freight also depends on coastal shipping. The major ports within Australia operate under their respective Port Authorities and the closer economic integration of Australia with the rest of the world has seen greater trade flows develop over the past 20 years. These trade flows have been supported by an increase in the use of containers as the means of exporting and importing commodities and manufactured goods. There is substantial growth predicted in both bulk and container ports into the foreseeable future. For container ports long term growth will grow at a compound rate of about twice GDP which means anywhere between 4-7% pa, which means TEU throughput will double in about 10 years. Substantive investment in expanded capacity is underway in Brisbane (additional container terminal and third stevedore), Sydney (Port Botany expansion of 4 or 5 berths) and Melbourne (channel deepening). All these projects amount in round terms to about $1 billion in each case. In Fremantle plans for outer harbour development and inner harbour deepening are well underway. For bulk ports strong demand for resources particularly from China and India is driving some huge investments in our bulk/resource ports in particular as it relates to iron ore, coal and LNG. By way of example Port Hedland is undergoing a $2.5 billion expansion and increases in capacity of similar magnitudes are occurring at Dampier, Dampier, Gladstone, Newcastle. There are also proposals to develop Oakajee which will, among other things, involve a new 500 km rail development. Currently the Federal Government alone is funding a $36 million rail and road investment program some of which is being applied to support access to ports and in increasing the efficiency of supply chains. Pressure on infrastructure, and demand for example for rail rolling stock nationally remains intense, and in the ports sector for skilled people and consultancy services in the ports has not diminished over the course of the so-called GFC. (Interestingly the volume of resources being exported has not diminished at all although the value/price has been affected). Further Australia is now enjoying increasing volumes of export grains after some years of drought affected output. OPPORTUNITIES The government owned ports are corporatized and accordingly subject to commercial disciplines. While subject in varying degrees to guidelines/policies (eg in relation to borrowings) of their respective central agencies they, in the main determine the providers and contractors for their services. In short, there is a lot going on, there is robust demand for engineering/coastal engineering/hydrographical and other related services, and the market is pretty open and port corporations directly purchase those services. There is a view that our market is ripe for better applications of IT to freight management. The market for the type of services currently in demand tends, in any event, to be global. There are Australian suppliers in specialist areas locally and overseas and likewise the corollary www.uktradeinvest.gov.uk Page 3 of 6 applies. In some areas such as dredging for example the tendency is to rely on overseas suppliers. There are home grown specialist in under keel clearance systems that are selling strongly in Europe. For a full list of port corporations and data on the commodities that they handle this information go to the Ports Australia at www.portsaustralia.com.au. Ports Australia is the peak body representing the interests of ports and marine authorities in Australia. It has been in existence in one form or another since around 1910 and was incorporated under the New South Wales Associations Incorporation Act (1984) in 1989. Port Authorities in Australia are in the main government owned although they do not as a rule own and operate (with some notable exceptions including common user facilities) stevedoring and other handling operations but are responsible for the strategic planning of their precincts and (increasingly) of their supply chains. Privatised ports include Flinders Ports (SA) and the Port of Portland in Victoria. Brisbane Port Corporation and Abbot Point in Queensland are in the process of being privatised. UKTI publishes international business opportunities gathered by our network of British Embassies, High Commissions and Consulates worldwide. These opportunities appear in the Opportunities portlet on the relevant sector and country pages on the UKTI website. By setting up a profile you can be alerted by email when relevant new opportunities are published. New or updated alert profiles can be set in My Account on the website. KEY METHODS OF DOING BUSINESS Background information on doing business in Australia can be found on UKTI?s website. Simply go to the Australia country page where you will find information on: ? Economic background and geography ? Customs & regulations ? Selling & communications ? Contacts & setting up ? Visiting and social hints and tips MORE DETAILED SECTOR REPORTS Research is critical when considering new markets. UKTI provides market research services which can help UK companies doing business overseas including: ? Overseas Market Introduction Service (OMIS). Bespoke research into potential markets, contacts and support during your visits overseas. ? Export Marketing Research Scheme. Advice on market research and help to contact subsidised market research administered by the British Chambers of Commerce on behalf of UKTI. Contact your local International Trade Advisor if you are interested in accessing these services, or for general advice in developing your export strategy. PUBLICATIONS In recent years, the direction and management have been fully reviewed culminating in a new mission statement, objectives and set of priority areas which guide the work programme of the www.uktradeinvest.gov.uk Page 4 of 6 Association. Full details regarding work undertaken by the leading body remains available at. www.aapma.org.au The membership listing which is very comprehensive including contact details of all the Ports located in Australia is found on the website at www.aapma.org.au/members.php3 Australian Logistics Council, National Transport Commission and Department of Transport and Regional Services in order to achieve a greater acceptance of, and support for integrated freight transport planning, harmonisation of regulations, as well as a better recognition of the role and importance of ports. There are a number of working groups within Ports Australia: ? Port Operations and Technology Group (which includes OH&S and Hydrographic/Marine Surveyors sub groups; ? Accounting & Finance Group (which includes an IT sub groups) ? Engineers Group ? IR/HR Group ? Environment Group (which includes as Sustainable sub group) ? Port Security Group All Groups have a wide representation from all states. These Groups exchange information and discuss issues that need to be investigated by the Association and its members and, in many cases, small specialist adhoc working groups are formed to develop a common view or approach. Ports Australia also runs seminars, conferences and working groups on a range of specific issues from time to time. National Competition policy is assisting in developing a more competitive and efficient maritime sector through legislation review, competitive neutrality and structural reforms. Some States are also introducing third party access regimes covering shipping berth channels and port infrastructure. Further information regarding this issue, as well as other relevant documents can be found on the National Competitive Council website: www.ncc.gov.au ALC is an national umbrella body representing all players in Australian transport and logistics industry, providing a partnership as well as all intermodal and unified voice on issues critical to the whole of Australia's Freight Supply Chain: www.auslogistics.com.au Australian Government Dept of Infrastructure, Transport & Regional Development - www.infrastructure.gov.au Australian Ports Newsletters - www.portsaustralia.com.au Shipping Australia - www.shippingaustralia.com.au Lloyds List Daily News - www.lloydslistDCN.com.au Infrastructure Partnerships Australia - www.infrastructure.org.au International Maritime Organisation circulars - www.imo.org State of the Future - www.soft@commerce.wa.gov.au WA Business News - www.wabusinesnews.com.au www.uktradeinvest.gov.uk Page 5 of 6 EVENTS As of release date no Port related exhibitions or conventions within Australia are advertised. UK Trade & Investment?s Tradeshow Access Programme (TAP) can help eligible UK businesses take part in overseas exhibitions. Attendance at TAP events offers significant benefits: ? possibilities for business opportunities both at the show and in the future ? a chance to assess new markets and develop useful contacts ? grants are available if you meet the criteria ? UKTI staff overseas will be available to assist delegates Find out if you are eligible to apply to attend this event, and more about the support UKTI can offer, on the UKTI Market Entry web page. Details of TAP events can be found in the Events portlet on the [country] page. Other Market Visit Support may be available via your local International Trade Advisor. CONTACT LISTS UKTI?s International Trade Advisers can provide you with essential and impartial advice on all aspects of international trade. Every UK region also has dedicated sector specialists who can provide advice tailored to your industry. You can trace your nearest advisor by entering your postcode into the Local Office Database on the homepage of our website. For new and inexperienced exporters, our Passport to Export process will take you through the mechanics of exporting. An International Trade Adviser will provide professional advice on a range of services, including financial subsidies, export documentation, contacts in overseas markets, overseas visits, translating marketing material, e-commerce, subsidised export training and market research. www.uktradeinvest.gov.uk Page 6 of 6