❓ A member of parliament questions the Minister for Transport about potential efficiency reductions and increased costs at Fremantle Port as it nears capacity, referencing a 2013 report. The Minister's response is deemed insufficient, leading to a point of order.
AnsweredQoN 855Legislative Assembly
QuestionView source ↗
FREMANTLE PORT AUTHORITY — PORTHCAWL PTY
LTD REPORT
855. Mr W.J. JOHNSTON to the Minister for
Transport:
I refer to the report prepared for the Fremantle Port Authority by
Porthcawl Pty Ltd in 2013, which notes that the two Fremantle container
terminals are the smallest in Australia and that both are smaller than the
minimum efficient scale for container terminals.
(1) What is the expected reduction in
efficiency at Fremantle as we move closer to the notional capacity of the port?
(2) Has the minister or his agencies modelled
the additional costs for companies using Fremantle because of the predicted
reduction in efficiency as the port nears capacity?
LTD REPORT
855. Mr W.J. JOHNSTON to the Minister for
Transport:
I refer to the report prepared for the Fremantle Port Authority by
Porthcawl Pty Ltd in 2013, which notes that the two Fremantle container
terminals are the smallest in Australia and that both are smaller than the
minimum efficient scale for container terminals.
(1) What is the expected reduction in
efficiency at Fremantle as we move closer to the notional capacity of the port?
(2) Has the minister or his agencies modelled
the additional costs for companies using Fremantle because of the predicted
reduction in efficiency as the port nears capacity?
AnswerView source ↗
(1)–(2) I thank the member for the question and for
his interest in Fremantle port. Fremantle port is an essential piece of
infrastructure for Western Australia's trade. The responsibility of
state government around the ports is to facilitate trade in Western Australia.
The current activity through the port is around 740 000 containers a year TEU—twenty-foot
equivalent units. In early 2000, the capacity of the port was estimated to be
around 1.2 million containers a year. At 740 000 containers, we are growing at
around 4.5 per cent to five per cent per annum, so we can start to plot out
when the capacity would be at 1.2 million. In recent discussions I have held
with stevedoring companies, they have told me that they believe that with
technology changes, they can increase that capacity through to 1.3 million to
1.4 million containers a year. With minimal capital spend, they could increase
the capacity by even another 300 000 or 400 000 containers a year. The port is
operating a lot more efficiently than it has done in the past. We believe there
is an opportunity to enhance that further. The Fremantle Port Authority and the
Department of Transport continue to work on models that would allow greater
efficiency. We can utilise many ports around the world, where container
ports, such as Singapore, currently operate around 34 million containers a
year.
Point of Order
Mr W.J. JOHNSTON : Mr Speaker, I
know you do not like me drawing attention to the fact that the minister is not
answering the question, but I did not ask about the capacity. What I asked were
two specific questions. What is the expected reduction in efficiency and has
the minister modelled the costs? Those are the two questions. I did not
interrupt the minister, but those are the two issues I am interested in and I
would like to know the answers to those two questions.
Questions without Notice Resumed
Mr
D.C. NALDER : I was doing a good job in answering about the efficiency of
the port and the capacity. With technological advancements, we have seen
greatly enhanced efficiencies at ports. We are talking to stevedoring companies
about what they can do to enhance that efficiency even further. We are seeing
that from examples around the world. Our port currently has a throughput of
around 740 000 containers compared with Singapore's 34 million a year.
Four to five million of those are for domestic use.
Several members interjected.
The
SPEAKER : Members!
Mr
D.C. NALDER : What I am trying to say, if the member would just let me finish
—
Mr
W.J. Johnston interjected.
The
SPEAKER : Member for Cannington!
Mr
D.C. NALDER : We do not see any impediment for increasing the efficiency of
the port as it currently stands. We see that there is room for greater
effectiveness and efficiency to drive forward, particularly through technology,
as well as additional infrastructure builds around that port. We are doing that
in time. I have said that the port has 740 000 twenty-foot equivalent units
going through it. It was estimated in the early 2000s that the capacity would
increase to around 1.2 million units, growing at 4.5 per cent to five per cent.
We have time to invest appropriately in the port to ensure that it can sustain
the Fremantle harbour for some time into the future.
his interest in Fremantle port. Fremantle port is an essential piece of
infrastructure for Western Australia's trade. The responsibility of
state government around the ports is to facilitate trade in Western Australia.
The current activity through the port is around 740 000 containers a year TEU—twenty-foot
equivalent units. In early 2000, the capacity of the port was estimated to be
around 1.2 million containers a year. At 740 000 containers, we are growing at
around 4.5 per cent to five per cent per annum, so we can start to plot out
when the capacity would be at 1.2 million. In recent discussions I have held
with stevedoring companies, they have told me that they believe that with
technology changes, they can increase that capacity through to 1.3 million to
1.4 million containers a year. With minimal capital spend, they could increase
the capacity by even another 300 000 or 400 000 containers a year. The port is
operating a lot more efficiently than it has done in the past. We believe there
is an opportunity to enhance that further. The Fremantle Port Authority and the
Department of Transport continue to work on models that would allow greater
efficiency. We can utilise many ports around the world, where container
ports, such as Singapore, currently operate around 34 million containers a
year.
Point of Order
Mr W.J. JOHNSTON : Mr Speaker, I
know you do not like me drawing attention to the fact that the minister is not
answering the question, but I did not ask about the capacity. What I asked were
two specific questions. What is the expected reduction in efficiency and has
the minister modelled the costs? Those are the two questions. I did not
interrupt the minister, but those are the two issues I am interested in and I
would like to know the answers to those two questions.
Questions without Notice Resumed
Mr
D.C. NALDER : I was doing a good job in answering about the efficiency of
the port and the capacity. With technological advancements, we have seen
greatly enhanced efficiencies at ports. We are talking to stevedoring companies
about what they can do to enhance that efficiency even further. We are seeing
that from examples around the world. Our port currently has a throughput of
around 740 000 containers compared with Singapore's 34 million a year.
Four to five million of those are for domestic use.
Several members interjected.
The
SPEAKER : Members!
Mr
D.C. NALDER : What I am trying to say, if the member would just let me finish
—
Mr
W.J. Johnston interjected.
The
SPEAKER : Member for Cannington!
Mr
D.C. NALDER : We do not see any impediment for increasing the efficiency of
the port as it currently stands. We see that there is room for greater
effectiveness and efficiency to drive forward, particularly through technology,
as well as additional infrastructure builds around that port. We are doing that
in time. I have said that the port has 740 000 twenty-foot equivalent units
going through it. It was estimated in the early 2000s that the capacity would
increase to around 1.2 million units, growing at 4.5 per cent to five per cent.
We have time to invest appropriately in the port to ensure that it can sustain
the Fremantle harbour for some time into the future.
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