Port of
Hastings
July 2014
What it means for
the South East Region
Infrastructure for the future
It is well recognised and accepted that Victoria
needs to invest heavily in some major infra...
MelbaHwy
HumeFwy
South Gippsland Hwy
CalderFw
y
Western Fwy
Princes Fwy
Avalon
Airport
Melbourne
Airport
Port of Hastings
...
Despite the current $1.6 billion expansion project
for the PoM, by 2030, it is due to reach capacity,
with Victoria needin...
Road and rail upgrade and other complementary infrastructure projects
for improved efficiency and connectivity.
Impact bey...
Growth in abundance
Across the South East Region, population growth over the
past five years has averaged 1.7% per annum, ...
Business uptake has been quick
Businesses are already jockeying for prime position to
capitalise on the many tangible bene...
Financial essentials
• Accounting and business
advisory services
• Audit, risk management and
assurance
• Internal audi...
Pitcher Partners has the resources and depth of expertise of a major
firm, but with a smaller firm feel. We give our clien...
Our global reach
International Gateway
Melbourne’s South East Region has the potential
to be Australia’s economic gateway ...
Key
Pitcher Partners
Partners: 89 Total Staff: 1000+
Audit and Assurance Investment Advisory
Business Advisory Superannuat...
Get in
Touch...
Perth
Newcastle
Sydney
Brisbane
Melbourne
Adelaide
+61 3 8610 5000
partners@pitcher.com.au
+61 8 8179 2800...
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Port of Hastings - what it means for South East Melbourne

Port of Hastings CEO and Members of Parliament joined by business leaders to discuss opportunities that the development of this key piece of infrastructure will bring for the South East Region. Hosted by Committee for Dandenong and sponsored by Pitcher Partners
Published on: Mar 4, 2016
Published in: Business      
Source: www.slideshare.net


Transcripts - Port of Hastings - what it means for South East Melbourne

  • 1. Port of Hastings July 2014 What it means for the South East Region
  • 2. Infrastructure for the future It is well recognised and accepted that Victoria needs to invest heavily in some major infrastructure projects, evidenced by the commitment of the State Government in its recent budget, and the Federal Government’s committed funds for Victorian projects. Growth predictions, particularly in container movements, is a key driver of the need for Australia to be more competitive in the global marketplace. Paramount to this will be boosting Australia’s exports and increasing productivity of our international gateways, and making sure they can meet the rapidly growing freight task without adverse impacts on community amenity. As Melbourne is Australia’s largest container port, planning for long term growth in container trades is critically important to our productivity – at the national, state and local level. The Port of Hastings (PoH) is pivotal to Plan Melbourne, the State Government’s strategy for Melbourne into the future. To transform a city, governments need to establish a pipeline of large-scale infrastructure projects that link to a city plan – and that is what the PoH is a part of. Pitcher Partners wants to ensure our clients are in the best possible position to capitalise on the opportunities created through the transformational change that these infrastructure projects represent – particularly through the PoH development in Melbourne’s burgeoning South East Region, often cited as the engine room of Victoria. Melbourne’s South East Region is already home to over 1.4m people and represents 21% of Victoria’s workforce. At the very least, people commuting via the Monash Freeway, or living within its catchment area, will have a greatly improved quality of living. of Gross Regional Product representing 19% of Victoria’s Gross State Product and making Melbourne’s South East a key economic region.$63bn priority infrastructure pipeline projects nominated for further detailed design and advancement by Infrastructure Australia including the PoH.28 of businesses are frustrated with Australia’s infrastructure. Australian Industry Group figures.70% 2
  • 3. MelbaHwy HumeFwy South Gippsland Hwy CalderFw y Western Fwy Princes Fwy Avalon Airport Melbourne Airport Port of Hastings Port of Melbourne Port of Geelong Princes Fwy SERL – Additional rail track Dandenong to Dynon NE link road E6 link road BIFT – 2M TEU capacity and potential MIS Terminal HPFV access to majority of freeway network Melbourne Airport OMR link road Melbourne Airport with fourth runway OMR Interstate Rail Bypass Avalon with second runway WIFT – 2M TEU capacity and MIS Terminal replacing Altona OMR link road EW link road MIS Terminal Healesville-Koo Wee Rup Road Upgrade to Freeway Port of Hastings around 9M TEU capacity Full freeway link to port Dynon Rail Terminals relocated Port of Melbourne up to 5M TEU capacity MIS Terminal Rail link to port PAKENHAM BELGRAVE DANDENONG DROUIN MELBOURNE MELTON HURSTBRIDGE SUNBURY DEER PARK LILYDALE WERRIBEE QUEENSCLIFF GEELONG HASTINGS FRANKSTON N Port Phillip Bay Abbreviations: Source: www.transport.vic.gov.au BIFT – Beveridge Interstate Freight Terminal, OMR – Outer Metropolitan Ring, SERL – South East Rail Link, WIFT – Western Interstate Freight Terminal Principal Freight Network (PFN) Rail Road Bulk/General cargo port Container port Interstate rail terminal Metropolitan Intermodal System (MIS) Terminal Freight airport Major Freight Network Developments Airport initiatives Intermodal terminal initiatives Port initiatives Major new rail link New road link LEGEND Non PFN features Urban area Long-term Metropolitan Freight Network Vision. Having access to an efficient freight network is absolutely vital for businesses and jobs relying on exporting and importing their products. 3
  • 4. Despite the current $1.6 billion expansion project for the PoM, by 2030, it is due to reach capacity, with Victoria needing to handle around 6,000,000 Twenty-Foot Equivalent Units (TEUs), more than double current volumes, and by 2035 it will need to handle 8,000,000 (almost quadruple current volumes). A competitive and sustainable commercial PoH is critical to preserving the South East Region’s export and manufacturing industries and supporting the liveability and economic growth of Victoria, and ultimately Australia. It will provide a major boost to the region’s social and economic wellbeing while also ensuring the state’s rightful position as Australia’s leading container hub. Current limitations of the Port of Melbourne (PoM) has driven the government to seek alternative port options for two critical reasons: The development of the PoH will complement growth at the PoM and provide an alternative container port which will generate more competition and economic flow on benefits for all of Victoria and Australia. Melbourne’s South East Region drives the state’s container traffic: • 33% of full import containers end up in the South East Region not taking into account products unpacked in Melbourne’s west and moved across to the South East Region • Dandenong is the number one destination for containers going to or from the PoM, amounting to around 132,000 TEUs. • By 2034, the South East Region is forecast to take more than 1.5 million TEUs; by 2051 this is expected to increase to 2.5 million TEUs (equivalent to all trade currently passing through the PoM) Connected roads, rail and airways To future proof the local, state and national economies, it is incumbent upon government to deliver the essential transport infrastructure that supports the impending increased demand on the container, freight and logistics sector. Qube Logistics noted that 500,000 TEUs moved by rail would take 860,000 truck movements off the roads Currently, daily truck movements are close to 300,000 truck trips per day and by 2046 this is expected to more than double. There is a long term strategy to improve freight efficiency, grow productivity and better connect Victorian businesses with markets – local, national and international. Greater Dandenong currently has the highest internal freight movement activity of all metropolitan Local Government Areas (LGAs). It is the largest generator of freight movement overall, with over 1,800 individual truck trips in the morning peak alone. The volume of freight in the South East Region is predicted to further increase as more industrial land is opened up in Greater Dandenong, Frankston, Casey and Cardinia, with more activity centred around logistics and warehousing, and more investment is attracted to the PoH. The PoH will be supported by integrated links with other government commitments and agendas, critical to the success of ensuring the PoH operates at maximum efficiency and the business benefits are optimised. This includes the Freight & Logistics Plan to ensure the capacity of Ports and Airports can handle the growing volume of goods and growing numbers of passengers. Rationale Increasing size of container ships. By 2036 the mean capacity of all international container vessels visiting Victoria is expected to be greater than 8,000 TEUs and by 2045, greater than 10,000 TEUs, on ships carrying between 8,000 and 18,000 containers each. 4
  • 5. Road and rail upgrade and other complementary infrastructure projects for improved efficiency and connectivity. Impact beyond containers The economic effects of the PoH extend well beyond the ability to move containers. Planned capital expenditure on Hastings alone is expected to provide the region with an average of $60 million per annum, in Gross Regional Product (GRP), over a 30 year period and an average 400 jobs per annum over the same period. The direct, and flow on benefits are likely to range from $1 billion in GRP and 5,700 jobs in the mid 2020s/30s rising to $3 billion in GRP and 15,200 jobs in the early 2050s. For Victoria, the economic benefits for job creation are expected to be in the vicinity of 6000+ in the initial early stages of development. Road Rail Other Freeway upgrades: – Monash – Hume – Western Port – Princes – Mornington Peninsula – EastLink and – South Gippsland Increased train capacity and upgrades to existing rail system including a rail link between Dandenong and the PoH and new rail loading facilities at Hastings Intermodal terminal Grade separations Dedicated dual standard gauge line rail connection (reservation set aside for the Western Port Highway) Third airport for Melbourne in the South East – potential target site is KooWeeRup 6-lane Western Port Freeway South East Rail Link with a dedicated rail freight link between Dandenong and Dynon Largest supply of pre-zoned industrial land with land use buffers where required Facilitation of Metro train tunnel allowing for better passenger trains on Dandenong line, freeing up space for freight trains Regional Rail Link which includes the East/West link and Cranbourne- Pakenham rail corridor Land surrounding the PoH has been reserved for port related activities since the late 1960s The release of the Victorian Freight & Logistics Plan, which seeks to provide an alternative cross-city freight route, is another example of what needs to be done to counteract the cost of congestion and lost productivity. Colliers International // Research & Forecast Report // Industrial Two primary destinations for inbound freight: Two primary sources of outbound freight: Manufacturing Manufacturing Wholesale and ultimately retail trade Agriculture South East Region accounts for 44% of Victorian Manufacturing 5
  • 6. Growth in abundance Across the South East Region, population growth over the past five years has averaged 1.7% per annum, while the number of households has increased by 1.6% per annum outgrowing both Victoria and national averages. Cranbourne East tops the South East Region’s fastest growing areas and Victoria was named the second-hottest housing region for the nation in a recent Housing Industry Association report. South East Region industries The PoH is considered critically important to the economic development of the South East Region and will be a major enabler for future investment. The economic development plans of all the LGAs in the South East Region have identified the PoH as a key economic driver in terms of the productivity increases it will bring to manufacturing, trade, technology and employment. The key South East Region industries include: Many of these industries rely heavily on export and import trade and the PoH supports the expansion of these industries across the South East Region including Gippsland and local logistics services, critical to Gippsland’s economic resilience. However, Manufacturing and Agriculture represent the greatest opportunities and impact for the PoH. Manufacturing Manufacturing alone employs 101,000 full time equivalents (FTEs) and is the largest single economic activity for the South East Region, operating significant port related activity. It accounts for 14% of the region’s GRP. The industry in the South East Region: • Produces 44% of Victoria’s total manufactured product • Contributes 13% of the region’s value added • Provides the largest number of jobs in the region • Exports just under $16 billion worth of products Food manufacturing is the largest component of the manufacturing industry in the South East Region. Agriculture The region’s diverse agriculture contributed 1.4% of the region’s gross value added (GVA), 1.4% of employment and 1.4% of exports. However, the figures belie the importance of agriculture in the outer regions where direct GRP accounted for by agriculture in Cardinia, Casey and the Mornington Peninsula was 11.4%, 4.1% and 4.5% respectively. The importance of agriculture has grown in the region’s peri urban areas. Between 2011 and 2013 it was the second fastest growing industry sector in the Southern Melbourne RDA. Victoria, the largest food and fibre exporting state, earns around $9 billion each year, with the South East Region being a major contributor to its success. In recent years, the sector has performed strongly, with GVA increasing by 4.8% per annum between 2006 and 2011 and 3.2% per annum between 2011 and 2013. In the later period, it was the second fastest growing industry sector in the southern Melbourne RDA. The dramatically reduced compound freight and delivery times have boosted business efficiency and profits right along the corridor bordering these roadways. Proposed upgrades to sections of the Western Port Highway and the development of Port of Hastings will further enhance the attractiveness of the area to business investment. Opteon // Australia’s Property Advisors Manufacturing Agriculture Wholesale trade Retail trade Property and construction 6
  • 7. Business uptake has been quick Businesses are already jockeying for prime position to capitalise on the many tangible benefits to be derived from the PoH. Of the 255,783 square metres of industrial space leased in Melbourne in the year to March 2014, the south east accounted for 57% of transactions. Salta Properties has developed land close to the inland port, comprising 180 hectares, called Portlink, in Dandenong South. This new development sees in excess of 600,000 square metres of warehouse space alongside a major rail and road transport hub. Qube has been secured as an anchor tenant, along with Bunnings who has taken a long term lease of over 43,000 square metres of space for its new distribution centre. Other recent deals include: Over 2013, sales activity in the region is also on the rise, with 26 sales totalling $361.2 million worth of industrial property (+$5 million exchanged in the six months to September 2013, compared to 11 sales totalling $231 million over the previous six months). Each job in manufacturing generates on average between two and five jobs in the rest of the economy. Goran Roos // Global manufacturing expert Reece Australia Second major South East Region site. Former L’Oreal distribution facility. Deal valued at $2m per annum L’Oreal Prelease of new facility of around 30,000 square metres. Ego Pharmaceuticals Purchased 9.5 hectares to build a $100 million manufacturing facility representing the biggest development by a manufacturer seen in the market for some years. 7
  • 8. Financial essentials • Accounting and business advisory services • Audit, risk management and assurance • Internal audit • Recovery, turnarounds and insolvency • Tax advice and compliance Planning and growth • Business consulting and commercial advice • Business performance improvement • Business structuring • Corporate governance • International business advisory • Investment advisory services • Succession planning • Superannuation services • Tax consulting • Technology and IT consulting • Transaction services • Valuations Our private wealth services • Estate planning • Family office management • Investment advisory services • Philanthropy services • Succession planning • Superannuation strategies • Tax advice and compliance Industry specialisations • Manufacturing • Property and construction • Agriculture • Transport & Logistics • Wholesale Trade • Retail • Food and beverage • Government and the public sector • Professional services • Health and aged care • Not for profit Pitcher Partners refers to the Victorian partnership and its associated entities including Pitcher Partners Advisors Pty Ltd, Pitcher Partners Consulting Pty Ltd, Pitcher Partners Corporate Pty Ltd, Pitcher Partners Transaction Services and Pitcher Partners Investment Services Pty Ltd. Pitcher Partners is a full service accounting and business advisory firm with a strong reputation for providing quality advice to privately-owned, corporate and public organisations. In Australia, Pitcher Partners has firms in Adelaide, Brisbane, Melbourne, Perth, Sydney and Newcastle. We collaboratively leverage from each other’s networks and draw on the skills and expertise of 1000+ staff, in order to service our clients. Pitcher Partners Melbourne is the leader in the middle-tier market and is the fifth largest accounting services firm in Melbourne after the Big 4 multinational firms. Pitcher Partners is also an independent member of Baker Tilly International (BTI), the eighth largest network in the world by fee income. Our strong relationship with other BTI member firms, particularly in Asia Pacific, has allowed us to open many doors across borders for our clients. $3.4bnWorldwide revenue 2013 (USD) 137Countries 27,000+Partners and staff globally 89Partners nationwide 1,000+People nationally About Pitcher Partners Our commercial services to dynamic businesses Pitcher Partners is a national association of independent firms. Liability limited by a scheme approved under Professional Standards Legislation. We are also the only major firm to have an office in Melbourne’s South East Region. 8
  • 9. Pitcher Partners has the resources and depth of expertise of a major firm, but with a smaller firm feel. We give our clients the highest level of personal service and attention. That’s the difference. Firm locations PERTH NEWCASTLE SYDNEY BRISBANE MELBOURNE ADELAIDE +61 3 8610 5000 partners@pitcher.com.au +61 8 8179 2800 partners@pitcher-sa.com.au +61 2 9221 2099 partners@pitcher-nsw.com.au +61 7 3222 8444 partners@pitcherpartners.com.au +61 8 9322 2022 partners@pitcher-wa.com.au +61 2 4911 2000 newcastle@pitcher.com.au 9
  • 10. Our global reach International Gateway Melbourne’s South East Region has the potential to be Australia’s economic gateway to Asia and the World 10
  • 11. Key Pitcher Partners Partners: 89 Total Staff: 1000+ Audit and Assurance Investment Advisory Business Advisory Superannuation Taxation IT Consulting Transaction Services Risk Services Business Recovery and Insolvency Business Consulting Private Clients Corporate Finance Pitcher Partners South East Full service office Opened August 2013 80 Monash Drive Dandenong South VIC 11
  • 12. Get in Touch... Perth Newcastle Sydney Brisbane Melbourne Adelaide +61 3 8610 5000 partners@pitcher.com.au +61 8 8179 2800 partners@pitcher-sa.com.au +61 2 9221 2099 partners@pitcher-nsw.com.au +61 7 3222 8444 partners@pitcherpartners.com.au +61 8 9322 2022 partners@pitcher-wa.com.au +61 2 4911 2000 newcastle@pitcher.com.au +61 3 8610 5146 david.knowles@pitcher.com.au David Knowles Pitcher Partners South East Region Partner David has been instrumental in realising our south east strategy to better service our clients in this burgeoning region. He brings this high level strategic thinking to the benefit of his clients which include large private and ASX listed public companies. He assists clients get ‘investor-ready’, pursuing growth opportunities that realise optimal value for the business and its owners. South East Office Managing Partner John Brazzale and South East Partner David Knowles at Pitcher Partners’ south east office.

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