the emerging opportunities for new port development economic reach adrian sammons
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The Emerging opportunities for New Port Development Economic Reach Adrian Sammons Director AustralAsia Trade Route Department of The Chief Minister Northern Territory Government of Australia. Economic reach The Great Freight Task - PowerPoint PPT PresentationTRANSCRIPT
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DEPARTMENT OF THE CHIEF MINISTER
The Emerging opportunities for New Port Development
Economic Reach
Adrian SammonsDirector AustralAsia Trade RouteDepartment of The Chief MinisterNorthern Territory Government of Australia
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DEPARTMENT OF THE CHIEF MINISTER
Economic reachThe Great Freight Task Standing Committee on Transport and Regional Services July 07
At a time of unprecedented prosperity and in the midst of an international resources boom, there could be no more potent images of lost opportunity, than the sight of queues of up to 50 vessels off three of our major bulk ports.
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DEPARTMENT OF THE CHIEF MINISTER
Economic reachSpatial Economics
Changing markets, newly commissioned competitive infrastructure, costs & technologies cause many existing ‘terminal’ sites to be no longer suitable. This applies particularly to rail and port terminals.
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DEPARTMENT OF THE CHIEF MINISTER
Economic reachSpatial Economics
The importance of locations changes with fluctuations in:
TRADE
VOLUME GROWTH
COST OPPORTUNITIES
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DEPARTMENT OF THE CHIEF MINISTER
Economic reachSpatial Economics
Spatial relationships between seaports are vital elements in competition
CENTRALITY
INTERMEDIACY
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DEPARTMENT OF THE CHIEF MINISTER
Economic reachSpatial Economics - Hinterlands
Hinterlands are often noted;
FUNDAMENTAL HINTERLAND
COMPETITIVE HINTERLAND
FORELANDS
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DEPARTMENT OF THE CHIEF MINISTER
A
B
C
HinterlandHinterland
Competition margin
Fundamental hinterlandD
ForelandForeland
Economic reach
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DEPARTMENT OF THE CHIEF MINISTER
Economic reachCase Study – Bulk cargo
Maritime shipping is dominated by bulk cargo, which roughly accounted for 69.6% of all the ton-miles shipped in 2005.
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DEPARTMENT OF THE CHIEF MINISTER
Economic reachCase Study – Rail activity
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DEPARTMENT OF THE CHIEF MINISTER
Economic reachCase Study – The Route Selection Process
The choice of linking one location to another, importantly, the path selected is part of a route selection process which respects a set of constraints.
R = f(min C : max E)
Route selection thus tries to find or use a path minimising costs and maximising efficiency.
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DEPARTMENT OF THE CHIEF MINISTER
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DEPARTMENT OF THE CHIEF MINISTER
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A BFriction of Distance
Transaction Costs
Shipment
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DEPARTMENT OF THE CHIEF MINISTER
Economic reachCase Study – Bulk commodity chain
Stockpilecenter
Port
Supplier Customer
Point-to-Point
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DEPARTMENT OF THE CHIEF MINISTER
SWL Exceeded
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DEPARTMENT OF THE CHIEF MINISTER
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Criteria Bulk MineralsBulk Minerals
Driving force minimising costs, maximising efficiency & reliability of supply
Mode of shipment Large output / economies of scale to offset inefficiencies
Flows Specialised with accumulated inertia
Terminals Dedicated / locational – proximity to mine & proximity to market
Markets Mass / World prices, inventory costs
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DEPARTMENT OF THE CHIEF MINISTER
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800km11 hrs to Adelaide
2112km28 hours to
Darwin
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DEPARTMENT OF THE CHIEF MINISTER
Economic reachCase Study – Bulk commodity chain
Adelaide / Dalian 5731 nm
Darwin / Dalian 3175 nm
Variance 2556 nm
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DEPARTMENT OF THE CHIEF MINISTER
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Bulk – mine to loadport Port 1 ~ $/T Port 2 ~ $/TMine crusher storage $3.30 $3.30Local delivery $4.40 $4.40Primary elevator $0.50 $0.50Rail Linehaul $5.50 $8.50Export terminal $0.50 $0.50Bulk ship stevedoring $2.50 $2.50Import terminal $2.00 $2.00Rail delivery $1.00 $1.00Sub Total (siding to ship) $56.00 $65.00Saving per tonne Total $9.00
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DEPARTMENT OF THE CHIEF MINISTER
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Bulk Handling Chain Port 1 ~days Port 2 ~ daysMine crusher storage Start StartDelivery to rail siding 1 1Rail delivery to stockpile 0.7 1.6Port stockpile reclaim 2 2Ship loading 3 3Bulk ship transit 18.5 10.2Import terminal 2 2Local delivery 1 1Final customer End EndTotal 28.2 18.8
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DEPARTMENT OF THE CHIEF MINISTER
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Bulk Handling Chain Port 1 ~ $/T Port 2 ~ $/TMine crusher storage Start StartMine to Australian loadport $56.00 $65.00Stockpile & shiploader $# $#Vessel charter hire $19.70 $10.80Product financing $5 $3Bulk ship transit $24 $13Import terminal $2 $2Local delivery $1 $1Final customer End EndTotal $107.70 $94.80
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DEPARTMENT OF THE CHIEF MINISTER
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DEPARTMENT OF THE CHIEF MINISTER
Thank you