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Feasibility Study - Department of Transport

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• minor road upgrades would be required to meet<br />

safety requirements for the car-carrying truck fleet<br />

accessing the port<br />

• VRCA’s existing channel access and boating safety<br />

education program would adequately address<br />

marine safety issues<br />

• visual impacts would be evaluated in any required<br />

statutory approvals process<br />

• truck trips per day (one-way) in the port precinct<br />

would increase as shown below.<br />

Road congestion effects<br />

Relocation to Geelong would not perceptibly reduce<br />

congestion over the West Gate Bridge or on port access<br />

roads. The movement <strong>of</strong> motor vehicles represents only<br />

five per cent <strong>of</strong> the total port-related truck movements,<br />

which in turn represent approximately three per cent<br />

<strong>of</strong> traffic on the M1 and over the West Gate Bridge.<br />

Therefore, motor vehicle trades represent around 0.1 per<br />

cent <strong>of</strong> traffic on the West Gate Bridge.<br />

Truck numbers may reduce slightly if longer transport<br />

vehicles for the line-haul from Geelong to Altona/<br />

Laverton are introduced. However, these vehicles are<br />

unlikely to be suitable for the distribution task to dealers<br />

on smaller local roads.<br />

Additional truck trips per day from car trade growth<br />

5. Delivery issues<br />

A number <strong>of</strong> issues would need to<br />

be addressed to achieve the<br />

successful and timely relocation <strong>of</strong><br />

motor vehicle imports and exports<br />

to the Port <strong>of</strong> Geelong.<br />

Timing<br />

Relocation <strong>of</strong> motor vehicle<br />

trades to Geelong would need<br />

to be coordinated with other port<br />

development proposals within the<br />

Port <strong>of</strong> Melbourne. It is understood<br />

that the earliest possible date that<br />

relocation <strong>of</strong> the motor vehicle trades<br />

could be required is around 2014/15.<br />

Planning, design, approvals,<br />

procurement and construction<br />

<strong>of</strong> a facility would need to be<br />

completed within three to four<br />

years. This timeframe is considered<br />

tight but achievable.<br />

2020 2030 2050<br />

Port to Compound 35 50 98<br />

Compound to Dealer 42 63 128<br />

Factory to Port 10 11 12<br />

Total 87 124 238<br />

Ownership, access,<br />

competition and pricing<br />

The Port <strong>of</strong> Geelong is privately<br />

owned. If the motor vehicle trades<br />

were relocated to the port, the State<br />

would need to enter into binding<br />

project agreements with the port<br />

owner, its agents and financiers<br />

to ensure that an adequate level<br />

<strong>of</strong> service is provided to the<br />

motor vehicle industry, including<br />

expansion <strong>of</strong> the facility over time to<br />

accommodate forecast growth.<br />

The Government would draw on<br />

similar experiences in reaching<br />

agreements, eg. Public-Private<br />

Partnerships, in structuring the<br />

project agreements.<br />

The automotive handling and<br />

logistics services industry is<br />

concentrated in the hands <strong>of</strong> a few<br />

related and integrated companies.<br />

This includes terminal operation,<br />

stevedoring and PDI.<br />

Most industry submitters to the<br />

discussion paper supported a<br />

model whereby an independent<br />

operator develops and manages<br />

the facility at Geelong and<br />

makes it available on an open<br />

access arrangement, reflecting<br />

arrangements at other motor vehicle<br />

port terminals around Australia.<br />

18 <strong>Feasibility</strong> <strong>Study</strong> Relocating motor vehicle importing and exporting to the Port <strong>of</strong> Geelong

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