Feasibility Study - Department of Transport

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24 Feasibility Study Relocating motor vehicle importing and exporting to the Port of Geelong
8. Conclusions Feasibility The relocation of importing and exporting of motor vehicles and related trades from the Port of Melbourne to the Port of Geelong is likely to be technically feasible, environmentally acceptable, and could meet industry forecast demand for at least 25 years, provided extra storage area is provided by the acquisition of additional land and the construction of a large multi-storey car park. Provision of additional space for on-wharf PDI is likely to be more expensive than transporting vehicles to existing facilities at Altona/Laverton. The proposal would cause certain and/or quantifiable impacts: • Higher costs would be incurred across the supply chain, including recovery of all capital investment, higher piloting costs, higher terminal operating and stevedoring costs, plus additional transport and distribution costs. The additional cost is in the order of $159 per vehicle for imports and $108 per vehicle for exports. • Multiplying these costs by the total number of imports and exports forecast for the year 2015, this would equate to an additional $71.4 million cost in the supply chain for the importing and exporting or motor vehicles in Victoria. • The ‘no on-wharf PDI’ model would prevent manufacturers from maintaining and expanding their current lean logistics chain models for dealer delivery direct from port. It also prevents other manufacturers from adopting this practice in future. • By 2030 approximately 50 per cent of car carrier vessels would be subject to average delays of four hours while waiting for channel access. • Total kilometres travelled in the land-side distribution task would increase by 70 per cent, with a similar rise in greenhouse gas emissions from this activity. • Current stevedore operations for break-bulk and general cargo trades at the Port of Melbourne would become less efficient and productive due to the loss of a significant share of their business to the Port of Geelong. The option would also pose or be subject to a number of key risks: • Ensuring adequate capacity and efficiency of port and terminal services would be subject to complex agreements between the State and private operators, causing risk of delays in supply or suboptimal governance, competition, access or performance. • The one-way, narrow and long nature of the Geelong shipping channel poses a risk of significant additional delays to shipping schedules in adverse wind conditions, which occur five per cent of the time. • The introduction of a relatively sensitive use could restrict the operations of other businesses within the Port of Geelong. • The project delivery timeline is tight, and delays could impact on both motor vehicle trades as well as international container trades. Feasibility Study Relocating motor vehicle importing and exporting to the Port of Geelong 25
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Page 7 and 8: Land-side supply chains The discuss
Page 9 and 10: Proposed South Corio depth 12.3m To
Page 11 and 12: Key Dual Gauge Rail Line Underpass
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Feasibility Study - Department of Transport

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