Department of Transport Annual Report 2010 - 2011

Departmental desired outcome 3: Integrated transport systems that
facilitate economic development.
The transport function is integral to business and commerce, and important for
social interaction and connecting communities. Therefore a major focus for DoT is
on strategic transport policy and planning across the range of public and commercial
transport systems that service Western Australia.
DoT, through its Policy, Planning and Investment division, develops, integrates and
regulates the State’s transport systems and infrastructure.
Through its policy and planning role, DoT determines the location of major transport
routes and infrastructure, their suitability for a range of transport services and how
each integrates into the broader transport system for boats, trains, planes and
vehicles.
DoT measures its effectiveness in meeting this outcome through measuring:
Effectiveness indicator: Percentage of containerised freight transported
via rail in relation to total metropolitan container movements to and from
Fremantle port.
As the lead agency in the planning of strategic transport routes and infrastructure,
DoT understands that efficient logistics are essential between major metropolitan
freight generators in order to avoid congestion and bottlenecks. Freight movement
also needs to be balanced with community consideration such as noise, road safety
and amenity.
An example of this approach, developed through the Metropolitan Freight Network
Review (MFNR), is the encouragement of industry to transport more containerised
freight by rail between Fremantle port and inland terminals in the Kewdale-Forrestfield
region.
The MFNR set a target for containers carried by rail between Fremantle and
Kewdale-Forresfield of 15 per cent by 2007-08 and 30 per cent by 2012-13. At
the end of 2008-09, container volumes reached 15.1 per cent, however, these
percentages dropped to 11.5 per cent for 2010-11 due to the long-term effect of the
global economic downturn.
The State Government originally provided financial assistance to support the rail
service at $50 per 20ft container in reflection of rail’s higher costs than road. The
subsidy reduced to $45 per 20ft container and $95 per 40ft container on 18 May
2009 and on 3 August 2009 the amount per 40ft container further reduced to $90.
The subsidy is paid on loaded containers having their origin or destination in the
metropolitan area. It was expected that the subsidy per container would further
decrease as volumes on rail increased and operational efficiencies were introduced,
however, further evaluation of the subsidy for the future may be required due to the
long term effects of the global financial crisis.
This indicator provides information on effectiveness and performance of the subsidy
DoT paid on behalf of Fremantle Port Authority to Intermodal Link Services (ILS) to
effect a modal shift from road to rail for containers transported to and from Fremantle
port for export or import.
To calculate this indicator, data on rail containers is sourced from the North Quay
Rail Terminal and is compared to Fremantle Port Authority’s trade figures for total
containers (excluding those that are transhipped and do not leave the port precinct).
This comparison enables calculation of rail’s market share.
Percentage of
containerised
freight transported
by rail in relation to
total metropolitan
container
movements to and
from Fremantle
port.
2007-08
actual
2008-09
actual
2009-10
actual
2010-11
target
2010-11
actual
13.3% 15.1% 10.9% 16.0% 11.5%
Reasons for
significant
variance
The global economic
downturn in trade has
impacted significantly
on rail volumes
through loss of certain
trades and intense
competition from the
road transport sector.
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