NSW is currently facing increasingly intense challenges in managing port related freight. The fundamental challenge for NSW is that there is expected to be ongoing growth in the number of containers moved through NSW’s ports. Over the longer run, annual growth rates in containerised trade in NSW have been around 5% a year.

This growth in container movements will put increasing pressure on Sydney. Expanding the freight network in Sydney is necessary and Government is currently planning around $3 billion to help decongest Sydney’s freight network.

Future expansion poses significant challenges and, over time, there will be a need to relocate some trade activity away from Port Botany. Currently, NSW Government plans and strategies focus on Port Kembla as the alternative container port for NSW.

This Deloitte Access Economics report analyses the role that Port of Newcastle could play in helping to manage the freight challenge in NSW. By servicing its natural catchment, PON could reduce the need for 500,000 twenty-foot equivalent unit a year to pass through Sydney’s freight network. This would have benefits in terms of congestion, emissions, transport costs, regional growth and port productivity.

Published: 10th April 2018