Below is a letter written by Greg Killeen that was recently published in Lloyd’s List.
Sir
I write in regard to your story (”NSW Opposition slams uncoordinated NSW spending”, Sam Collyer, Lloyd’s List DCN , September 27, 2007) and would agree the Iemma Government has no integrated freight plan and this equates to gross economic mismanagement of NSW and its taxpayers’ money.
With Sydney’s lack of appropriate road and rail infrastructure to support current container trade, the Iemma Government should scrap the proposed 60-ha Port Botany expansion and use the $700m-plus construction budget, along with the AusLink funding, to address this issue immediately.
There is no urgency for a 60-ha third terminal as DP World’s proposed $43m upgrade and the recent completion of Patrick’s $220m upgrade will increase Port Botany’s capacity to around 2.7m teu per annum - doubling current capacity - and without NSW taxpayers’ money.
The Port Botany expansion is planned without any sound business principles.
The Iemma Government will soon announce the successful tenderer for the “design and construction” of the 60-ha footprint (twice the size recommended by the COI), prior to securing a contract with a stevedore to develop and operate on it, resulting in no surety of a return on the expenditure.
With the Iemma Government unable to manage a long-term lease with DP World at Port Botany, what will be the economic and commercial impact if Patricks does not exercise its 18-ha (30%) option on the proposed 60-ha expansion, that it was offered to get out of Darling Harbour before 2000?
Port Botany was approved to process a maximum of 3.2m teu per annum with the proposed expansion. However, it will have a capacity greater than 4.2m teu per annum combined with current stevedores’ upgrades.
If and when the port were to operate at this capacity, even with the 40% freight rail target for containers, it would equate to a 200%-300% increase in containers transported by road, creating an ongoing detrimental impact on Sydney’s traffic congestion.
Mr Tripodi’s comments are true - that there was extensive community consultation for the Port Botany expansion; however, the community submissions were, and continue to be, ignored as was the recommendations of the COI.
The Iemma Government has given itself powers beyond legal reproach by establishing “state significant” legislation to approve any development, regardless of the detrimental economic, environmental and social impact and has turned NSW from a democracy into a dictatorship.
The Iemma Government must reconsider the proposed Port Botany expansion and address the current container freight and infrastructure issues with a whole of state approach and implement the NSW Ports Growth Plan now.
Or it will prove the Government has learnt nothing from its other infrastructure debacles, such as the Cross City Tunnel, Sydney Airport RailLink and the M5 that was at capacity the day it opened etc., because it will squeeze the last breath out of Sydney’s choking road network.
Greg Killeen,
Secretary, Save Botany Beach.