SYDNEY PORTS CORPORATION ANNUAL REPORT 12

CHIEF EXECUTIvE
OFFICEr’S rEPOrT
grant giLfiLLan
SYDNEY PORTS’ FINANCIAl PERFORmANCE ThIS YEAR wAS SOlID
wITh REvENuE TwO PER CENT hIghER ThAN ExPECTED AND COSTS
14 PER CENT uNDER BuDgET. ThIS wAS DESPITE CONTAINER TRADE
vOlumE BEINg wEll BElOw FORECASTS AND juST ABOvE ThE
PREvIOuS YEAR’S lEvEl.
Once again, our safety performance
was commendable, although three
lost-time injuries (LTIs) this year was
in contrast to zero LTIs last year.
While none of the injuries were serious,
they all occurred in a concentrated
period between October and
December 2011. Safety inspections
continue to assist us in maintaining
safety as an action activity.
Since September 2011, our focus
has shifted to assisting the NSW
Government in the long-term lease of
Port Botany. I am immensely proud of
the way Sydney Ports’ staff members
have taken on the additional workload
of preparing for the lease. This is a
testament to their professionalism and
commitment to Sydney Ports.
A significant achievement during
the year was agreement with the
Government for a more realistic level
of cruise pricing to ensure sustainable
funding of cruise infrastructure
development. We had agreed to freeze
berthing fees in 1992, and reduced
them in 1996, as the cruise industry
asked for financial incentives to help
them grow Sydney as a destination.
Now, with booming cruise arrivals
in Sydney, we need the revenue to
finance the development of new
facilities to meet that demand.
The Federal Government’s “Hawke
Review” in February 2012 concluded
that cruise ships were incompatible
with the Navy’s operations at Garden
Island. However, with growing numbers
of large ships unable to fit under
the Harbour Bridge, Sydney Ports
will continue to lobby government
for additional cruise berths east of
the bridge.
Overall, Sydney Ports achieved
significant milestones in port
infrastructure projects during 2011/12.
In August 2011, a third operator, Sydney
International Container Terminals Pty.
Limited, took possession of 45 hectares
of the expanded Port Botany terminal
area. This enabled them to plan for site
works due to begin late 2012. The new
terminal was officially named Hayes
Dock, in memory of the late John
Hayes who was instrumental
in the establishment of container
terminals at Port Botany.
Construction of Port Botany’s
second Bulk Liquids Berth is now
well advanced and substantial
progress was made on the Penrhyn
Road Grade Separation Works to
improve road access within the Port.
The Port Botany Landside
Improvement Strategy continues
to demonstrate high value through
improved road and rail transport
efficiencies. The Truck Marshalling
Area, opened in June 2012, will drive
further efficiencies. The new Port
Botany Rail Operations and
Coordination Centre will coordinate
train services through the Port area
when fully operational in late 2012.
overaLL, Sydney PortS
aChieved SignifiCant
miLeStoneS in Port
infraStrUCtUre
ProjeCtS dUring 2011/12.
Ongoing work on the Intermodal
Logistics Centre at Enfield and
expansion of the Cooks River Rail
Depot and Empty Container Park
by the major tenant will increase
container rail transport volumes.
Work to secure Glebe Island and
White Bay for future port use is
progressing and the new cruise
passenger terminal at White Bay 5 is
on track for completion in early 2013.
The new Vessel Traffic Service system
was successfully commissioned,
following last year’s relocation from
the Barangaroo Harbour Control Tower
to the Sydney Ports Operations Centre
at Port Botany. Construction is well
advanced in the United Kingdom on
two new pilot cutters for port use,
with sea trials on the first vessel to
commence in late 2012.
Sydney PortS CorPoration annUaL rePort 2011/12 9