Port of Geraldton Master Plan J UNE 2 0 2 0
Contents E XECUT I VE SUMMARY Minister’s Foreword 3 From the Chair 4 From the CEO 5 Executive Summary 6 S ECT I ON 1 Introduction 9 S ECT I ON 2 History 12 S ECT I ON 3 Opportunities and Constraints 16 S ECT I ON 4 Process and Methodology 20 S ECT I ON 5 Trade Forecast Scenarios and Infrastructure Needs 24 S ECT I ON 6 PMP Strategy 34 S ECT I ON 7 Port Maximisation Plan 38 S ECT I ON 8 Long Term Port Expansion 54 S ECT I ON 9 Implementation and Review Process 58 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020 2
PORT MA S TER P L AN The Mid West is a region with significant potential for economic growth. Its location in central Western Australia, its proximity to key international markets, and its diverse natural resources and thriving primary industries sector present a diversity of prospects, many of which have yet to be fully developed. Mid West Ports Authority (MWPA) plays a key role in the Mid West economy by providing critical supply chain infrastructure for the mining, agriculture, and fishing sectors, with potential for future diversification, including further support of the region’s growing tourism industry. We also see MWPA could play a crucial role in the development of the emerging renewable hydrogen in the region leveraging off the exceptional wind and solar resource. This optimisation plan encourages more direct shipping into the region, reducing costs for local business and relieving heavy haulage pressure on our roads. Minister’s Foreword MWPA in itself is a large direct employer, and indirectly supports job creation through engaging local contractors and supporting local businesses and industries. This Port Master Plan considers how the Port of Geraldton, its transport and infrastructure corridors and Fishing Boat Harbour could develop in the short to medium term, in response to increasing trade. It provides strategic guidance for investment decisions that will provide significant economic value to the Port, Mid West Community, and Financial Partners. We are committed to ensuring our publically owned port continues to drive jobs and opportunities for the people of the Mid West. HON Alannah MacTiernan MLC Minister for Regional Development, Agriculture and Food, Ports, Minister assisting the Minister for State Development, Jobs and Trade. HON AL ANNAH MACT I ERNAN MLC MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020 3
PORT MA S TER P L AN MWPA celebrated its 50-year anniversary in 2019, and the Port of Geraldton has evolved considerably since the creation of the Geraldton Port Authority in 1969. In 2018, the Board and management took the opportunity to complete a strategy reset, with a vision to be bold supply chain enablers for the sustainable long-term future of regional Australia. This Port Master Plan is an important milestone towards realising the MWPA vision as it sets the foundation for the next 15 years of growth and development in the Port and surrounding areas. In the coming years, MWPA will work with its stakeholders to achieve the four short-to-medium term key focus areas set out in the Port Master Plan. These include Port Maximisation, development and integration of adjoining land, protection and growth of key transport and infrastructure corridors, and development of an intermodal inland Port at the Narngulu Industrial Estate. We will From the Chair NOE L HART also progress planning for a sustainable long-term Port expansion option, including working with our partners to promote the development of the Oakajee Strategic Industrial Estate. On behalf of the Board, I would like to thank everyone who took the opportunity to engage with us during the public comment period, especially those who prepared formal submissions. We look forward to continuing this engagement as we work to build a successful and resilient Port of the future which is connected with customers, government and the community. NOEL HART Chair MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020 4
PORT MA S TER P L AN The Port of Geraldton is one of the most diverse commodity ports in Australia. To build on our base of diversified trades, our purpose is to be the sustainable Gateway to Trade and Tourism, providing our customers with efficient supply chain from the Mid West region to the world. In 2018/19, the Port had a slight increase in throughput, recording 15.905 million tonnes. The estimated value of trade was $4.4 billion, up from $3.6 billion the previous year. With a number of potential projects in development across the Mid West region, the future is bright for Mid West Ports Authority to significantly increase both the volume and variety of exports through the Geraldton Port in the years to come. It is important that future development to facilitate trade growth is undertaken in a coordinated and sustainable manner, which enables us to operate in BALANCE with the environment whilst providing economic benefits for our community and shareholders. The Port Master Plan offers a strategic direction for how sustainable growth can be accommodated over the next 30 years, with a focus on MAXIMISING capacity at the Port of Geraldton over the next 15 years. From the CEO The Port Master Plan is the culmination of over two years of stakeholder and community engagement, research, forecasting and analysis and offers several potential avenues for government and private investment. Ultimately, it is envisaged that the implementation of the Port Maximisation Plan would support throughput up to 50 million tonnes annually and lead to a substantial increase in revenue. The Port Maximisation Plan will also contribute directly to the Mid West economy through additional jobs and business opportunities. I look forward to collaborating with our stakeholders and the Mid West community to realise the aspirations of the Port Master Plan. Dr Rochelle Macdonald Chief Executive Officer DR ROCHE L L E MACDONALD MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020 5
Mid West Ports Authority (MWPA) has undertaken the development of a Port Master Plan (PMP) for the Port of Geraldton. The PMP provides a high-level analysis of potential trade growth and required infrastructure to accommodate this growth over a 30-year planning timeframe. It further considers the development required in the short to medium term (i.e. over the next 15 years) to maximise the throughput and efficiency of the existing Port, prior to considering longer term expansion options, at either Geraldton or the Oakajee Port. Whilst the long term expansion options are considered, additional investigations, consultation and design work would be required to enable a preferred option to be recommended. This document summarises the key components of the PMP, which are discussed in the sections below. It is underpinned by detailed technical reports undertaken throughout the life of the project, which were prepared by GHD Advisory and MWPA. Section 1: Introduces the PMP objectives, explains how the document will be used., and outlines environmental and social considerations which were identified during the development of the plan and consultation process. Section 2: Provides a brief history of how the Port of Geraldton has evolved over time. Section 3: Provides a high-level overview of opportunities and constraints that may affect future growth of the Port of Geraldton. Section 4: Summarises the process undertaken. Section 5: Provides a summary of the trade forecast scenarios considered in the development of the PMP and associated infrastructure capacity requirements. Section 6: Outlines the broad PMP strategy, which focuses on maximisation of the existing Port footprint and integration of surrounding land and infrastructure corridors into port operations prior to considering opportunities for expansion. Section 7: Looks at specific projects for marine structures, land, rail and road which may help realise the short to medium term goals of maximisation and integration. Section 8: Considers options for long-term Port expansion Executive Summary PORT MA S TER P L AN Section 9: Explains how the PMP will be implemented and reviewed over time. It is important to note that the PMP is not a statutory planning document, rather it is a strategic document that outlines one way of providing facilities and infrastructure to accommodate the trade demand predicted in a highgrowth scenario. Put simply, it provides a vision for what the Port could look like as it evolves over the next 15 years, not necessarily what itwill look like. Whilst the PMP will be used to guide planning and investment decisions it will not replace the need to undertake detailed feasibility, environmental and design studies for individual projects. Investment decisions will be made further to Expressions of Interest for private investment or Business Cases for capital expenditure proposed to be undertaken by MWPA. Some projects will also require a substantial amount of stakeholder and community engagement. The PMP is a live document that will continually be revisited to consider updated trade forecasts, stakeholder feedback, emerging proponents and developments completed. 6 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020
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OUR V I S I ON To be BOLD supply chain enablers for the sustainable long-term future of regional Australia. OUR PURPOS E To provide a sustainable gateway for trade and tourism. OUR VALUE S Accountability Caring Courage Collaboration Integrity F I GURE 1 MWPA Values 8 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020
During 2017, the MWPA Board and Executives focused on planning initiatives to create and sustain a high performing organisation. As part of this strategic outlook, MWPA identified the need to undertake a detailed Port Master Planning process for the Port of Geraldton, including the Fishing Boat Harbour (FBH). This work commenced in early 2018, and has involved considerable stakeholder and community input, which is further detailed in Section 4. Whilst MWPA jurisdiction also includes the site of the proposed Oakajee Port, the main focus of the PMP is the existing Port of Geraldton and surrounds. A subsequent Port Development Strategy is in progress which will further examine the relationship between Geraldton and Oakajee, both of which are included in one gazetted port under the Port Authorities Act 1999, in addition to other Ports including Cape Cuvier and Useless Loop which are scheduled to come under the management of MWPA in the future. At a fundamental level, the PMP is guided by the MPWA vision and values and is designed to help achieve MWPA’s organisational purpose. Introduction S ECT I ON 1 The PMP aligns with the MWPA Corporate Strategy and Western Australia’s State Planning Strategy 2050 . The PMP has been informed by a suite of guiding documents, including but not limited to theNational Ports Strategy , the Inquiry into National Freight and Supply Chain Priorities 2018 , theMid West Regional Blueprint 2015 , theWestern Australian Regional Freight Transport Network Plan , theMid West Regional Planning and Infrastructure Framework andGrowing Greater Geraldton – A Growth Plan . The objectives of the PMP are to: ■ Clarify and further define MWPA’s strategic development planning for the Port of Geraldton over a 15-year horizon, informed by trade projections over the next 30 years; ■ Guide and facilitate future developments by MWPA or private investors; ■ Identify and preserve land for future developments within the existing Port boundary and surrounding areas; ■ Identify and preserve land for key logistics routes which form part of the supply chain to the Port; ■ Identify marine and land side infrastructure requirements for common and/or dedicated utilisation by MWPA and its customers; ■ Align with the overarching development plans prepared for Geraldton, the Mid West and the wider Western Australia; ■ Effectively consider opportunities, constraints and risks from various perspectives such as trade, asset maintenance, environmental and social aspects; and ■ Be structured to enable revision as circumstances change. “ A Port Master Plan describes what a port could look like, not what it will look like. ” 9 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020
The PMP will: ■ Create additional economic value through increased industry and investment confidence; ■ Unlock latent capacity in the existing Port footprint through operational improvements and provision and management of critical infrastructure; ■ Assist in overall supply chain management by integrating the Port into broader network considerations and ensuring that vital seaport and logistics chain infrastructure is delivered when and where it is needed; ■ Provide increased environmental protection by identification of -key environmental considerations early in the design process; ■ Assist in realising the environmental and social interface opportunities in and around the Port; and ■ Inform port users, employees and the broader community how they can expect to see the port develop over the coming years. SUS TA I NAB I L I TY FOCUS MWPA has started its journey towards a sustainable future by shaping its Corporate Strategy in alignment with the United Nations Sustainable Development Goals. One of MWPA’s five ‘Enterprise Objectives’ is to ‘Operate in BALANCE with the Environment.’ This means that MWPA Introduction S ECT I ON 1 seeks to achieve sustainable yet profitable use of its assets by focusing on eco-friendly design, waste management, resource use efficiencies, climate change adaptation, engineering and technological solutions as the world moves towards a carbon free future. Out of the 18 sustainable Development Goals adopted by the United Nations, it is considered that the PMP will align with the 13 goals depicted in Figure 2. The following environmental and social considerations were identified during the PMP strategy definition and consultation processes. Ensuring environmental protection: ■ Marine habitats and ecosystem function ■ Protection of Cultural and Natural values including biodiversity and threatened species conservation such as the Australian sea lion ■ Erosion and coastal stability ■ Change to coastal process (surge, wave action, sediment transport) Management of potential impacts: ■ Storm and waste water management and treatment ■ Waste Management ■ Noise and vibration ■ Fugitive dust management ■ Emissions and discharges (air, water and soil pollution and contamination) ■ Changed water quality These considerations will be addressed in the detailed design phase of project implementation with further stakeholder engagement and input. In addition to this PMP, MWPA is implementing a Sustainability Strategy in 2020 which along with dedicated environmental management plans will focus on the day to day operational performance and practices which will improve social, environmental and economic outcomes. 10 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020
F I GURE 2 United Nations Sustainable Development Goals (United Nations, 2015) relevant to the Port Master Plan 11 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020
History Maritime infrastructure has been part of the Geraldton urban fabric since European settlement began, with the first jetty built into Chapman Bay from Gregory Street in 1857. The Port of Geraldton has existed in its current location for nearly 100 years, with Berths 1 and 2 in the location where the first reinforced concrete wharves in Western Australia were constructed between 1928 and 1931. The Berth 1 workshop is also a remnant of the original Berth No. 1 Goods Shed from the 1930s. As Geraldton has grown and its economy diversified, the Port has responded to these changes and has expanded as needed to accommodate the region’s trade. Figure 4 shows how trade volumes have grown since 2000. The Port experienced a doubling in throughput from 2002 -2005, which was aided by the completion of the Port Enhancement Project (PEP) in 2003, and export volumes also rose sharply in 2012/13 after the construction of Berth 7. These works resulted in the creation of numerous sustainable jobs in the Mid West Region. In the coming years, the Port will continue to be a visible landmark in Geraldton, and will build upon its existing history to facilitate economic growth and employment opportunities for the Mid West community. S ECT I ON 2 12 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020
F I GURE 3 Timeline of Development at the Port of Geraldton B EG I NN I NG - 1 8 6 0 ’ S Maritime industry begins (1840) Geraldton Town site begins (1849) 1 9 0 0 - 1 9 1 0 ’ S Fishing industry begins (1900-1939) 1 9 4 0 - 1 9 5 0 Crayfishing Boom begins (1940) 1 9 6 0 - 1 9 7 0 Became Geraldton Port Authority (1969) Berth 3 built and extended Fishing Boat harbour built Berth 4 built (first iron ore shipment) 1 9 9 0 - 2 0 0 0 Various land reclamation & maintenance projects (1994 - 96) Berth 6 developed. Berth 3 expanded. Berth 1 & 2 - increased shipping access. Berth 4 - extended. 2 0 1 0 - CURRENT Karara Mining Ltd commence exports at Berth 7 (2012) Third Tug Boat Geraldton Port renamed as Mid West Ports (2014) 1 8 9 0 - 1 9 0 0 Railway Jetty built (1893) 1 9 2 0 - 1 9 3 0 ’ S Main breakwater built (1924 - 1926) Berth 1 & 2 built (1928 - 1931) Export of 2 million bags of wheat 1 9 5 0 - 1 9 6 0 Formation of Fisherman Corporation highlighting needs for the Rock Lobster industry 1 9 7 0 - 1 9 8 0 Berth 5 built (Iron Ore Ship-loading Facility) 2 0 0 0 - 2 0 1 0 Port Enhancement Project $103 million (2003) Two Tug Boats (2005) 13 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020
F I GURE 4 Port of Geraldton Throughput 2000 - 2019 14 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020 Iron Ore Grain Exports 5.00 10.00 15.00 20.00 0 25.00 TONNES (M) Mineral Exports Misc Imports 2019/20 2014/15 2015/16 2016/17 2017/18 2018/19 2010/11 2011/12 2012/13 2013/14 2009/10 2006/07 2007/08 2008/09 2005/06 2004/05 2003/04 2002/03 2001/02 2000/01 PEP Berth 7
15 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020 Substantial investment has been made in the Port of Geraldton and its enabling supply chain infrastructure since the start of the 21st century. The Port Enhancement Project (PEP) commenced in September 2002 and included: ■ Dredging to deepen the harbour basin and deepen and widen the entrance channel; ■ Construction of the eastern breakwater; and ■ Modifications to two berths and three ship loaders. Funded by State Government investment of $103 million, the PEP directly facilitated iron ore export by Mount Gibson Iron Ltd and supported growth of the grain industry. The PEP was complemented by a further $151 million of State Government investment in the Geraldton Southern Transport Corridor, which occurred over two stages between 2003 and 2009 and incorporated: ■ Construction of 12 km of new rail line and a new rail terminal at the Port of Geraldton, including four road bridges and two rail tunnels; ■ Construction of 14 kilometres of road linking the Port of Geraldton to the Narngulu Industrial Estate; ■ Removal of the rail line fromWebberton to the CBD, which enabled the Geraldton Foreshore Redevelopment Project. History S ECT I ON 2 In 2008, a further $50 million State Government investment was made into the Berth 5 Iron ore expansion project, which added 10 mtpa to the Port’s iron ore export capacity through widening the berth, installing conveyors and materials handling facilities and constructing a dedicated iron ore shiploader. The private sector has also invested strongly in the Port of Geraldton. In 2013, Karara Mining Ltd. finished construction of its dedicated iron ore export facility at the Port, which consisted of the Berth 7 wharf and shiploader, a dual wagon rail car tipper, additional rail line, covered conveyor and iron ore storage facility. Taken together, these improvements have directly contributed to an increase in trade from 3 mtpa in 2002 to a peak of 18 mtpa in 2014, with the capacity to reach up to 23 – 28 mtpa without requiring significant further improvements. In addition to significant creation of local jobs and stimulation of the local economy, the increased tonnage has benefitted the State through increased taxation revenue and royalties.
The Port plays a vital role in supporting the economies of Geraldton and the wider Mid West region and facilitates trade in a diverse range of industry sectors including iron ore; metal concentrates and mineral sands; grain and agricultural products; rock lobster, molluscs and finfish; fuel; live cattle and the growing tourism sector, including cruise ship visitation. Port throughput has averaged around 16 Million tonnes per annum (‘Mtpa’) since 2013, with a peak of 18 Mtpa in 2014 and an average berth occupancy of 50%, as shown in Figure 5. It is noted that the average berth occupancy does not reflect peak months, as Berth 6 can experience an occupancy of 70% during high periods. In context, an occupancy rate of 70% or greater is considered to provide a low level of service and is the point at which substantial queuing occurs. Additionally, Berths 1 and 2 are largely unutilised due to aging infrastructure and surge impacts which increases the demand for the remaining berths. Strategic investment in infrastructure can help ensure that berth occupancy is optimised. An efficient and sustainable port is critical to support growth in existing trade sectors, as well as to enable the introduction of new and potential emerging sectors such as aquaculture, oil and gas industry support, breakbulk and container handling. Opportunities also exist to move trade from congested metropolitan areas to regional ports, which will help to maintain strong and sustainable regional communities. Growth in trade leads to increased employment and training opportunities for local residents, which in turn encourages increased spending in local businesses. However, any new development must be cognisant of existing contraints as well as opportunities. The graphic in Figure 6 sets out some key opportunities and constraints which were identified and considered through the PMP process. These have informed the outcomes of the PMP. It is noted that some constraints also lead to opportunities, if properly managed. For instance, the need to increase capacity in the power and water supplies presents an opportunity to explore renewable energy generation. The PMP also considered regional constraints to supply chain infrastructure, including: ■ All truck routes from the north and some from the south travel via built up areas; ■ RAV10 vehicle access (vehicles between 36.5m and 53.5m in length) to the Port is constrained south of Carnarvon. A number of improvements to the road Opportunities and Constraints S ECT I ON 3 network would be required to enable continuous RAV 10 access, including the Dongara Geraldton Northampton Bypass, of which the Oakajee Narngulu Infrastructure Corridor (ONIC) is a component; ■ The existing narrow gauge rail infrastructure with maximum 21 tonne axle load capacity will restrict longer term growth prospects; ■ Whilst identified in regional and local planning frameworks, at the time of writing the alignment of the ONIC is not confirmed and funding has yet to be committed to the project; and ■ Strategic improvements to the agricultural freight network (road and rail) are required to increase productivity. This was recently investigated in the draft Revitalising Agricultural Region Freight Strategy (Department of Transport 2019) which identified several priority projects in the Geraldton region. “ Problems are hidden opportunities, and constraints can boost creativity. ” MART I N V I L L ENEUVE 16 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020
F Y END I NG Total Imports Total Exports Average berth occupancy (berths 3-7) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% B ERTH OCCUPANCY 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000 0 TONNE S 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 F I GURE 5 Throughput and Berth Occupancy, 2013 – 2018 17 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020
OP PORTUN I T I E S F I GURE 6 Opportunities and Constraints CONS TRA I NT S Marine Land & Utilities Social & Environment Regional Berth upgrade program Non cyclonic zone Rail / road access to Port Existing services Tourism Community engagement Ageing infrastructure Surge Limited port land Fire water system is limited No land allocated for slurry pipeline Dust generation Draft Master Plan Options Job creation and professional development Environmental Protection Conserve cultural and natural heritage Coastal hazards Adjacent urban environment 18 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020
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Stage 1 of the PMP project commenced early in 2018 and completion of the PMP review and public consultation tasks concluded Stage 3. The three project stages are shown in Figure 7. S TAGE 1 Stage 1 involved a series of background investigations which helped define the baseline state of the Port of Geraldton. Investigations included: ■ Collation and review of recent available data and reports, including environmental, metocean and heritage data and any existing strategic plans and studies relevant to the Port; ■ Trade forecasts and capacity analysis to establish marine and landside infrastructure profiles required to service future demand (detailed in Section 5 of this Report); ■ The establishment of a strategic framework and vision to guide the PMP process and outline the ‘guiding principles’; and ■ Development of a stakeholder and community engagement strategy. ■ Stakeholder and community engagement were key components of Stage 1, and included: ■ An online community survey which attracted 230 responses; ■ Stakeholder input through formal briefing sessions, faceto-face meetings and teleconference interviews; and ■ Liaison by the consultants with MWPA employees. The outcomes of the engagement phase are plotted in Figure 7. Matters that were considered ‘very important’ to both stakeholders and MWPA included ‘activating and supporting the Mid-West economy’ and ‘facilitating trade growth’. The PMP has been designed to achieve these objectives, whilst balancing the desire for growth with other important objectives such as ‘ensuring environmental protection and management of impacts’ and ‘ensuring successful Port-Township interface’, which were also of high importance to stakeholders. Process and Methodology S ECT I ON 4 20 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020
F I GURE 7 Project Methodology BA S E L I NE Stage 1 DRAF T OP T I ONS Stage 2 PRE F ERRED P L AN Stage 3 Capacity Options Concept Plans Cost Estimation Multi Criteria Analysis Literature Review Stakeholder and community engagement Establish baseline capacity Identify opportunities and constraints Market Demand Analysis Trade Forecast Capacity Modelling Infrastructure Needs Analysis Draft PMP Community and Stakeholder Engagement Review Process Release PMP 21 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020
SOC I AL / COMMUN I TY Outlining the ‘port vision’ Ensuring successful port-township ‘interface’ management Ensuring port safety and security Showing ‘anticipated’ staged layout and/or expansion plans ie. 10 Year, 20 year, 30 year etc. Facilitating cruise shipping within port ENV I RONMENTAL Ensuring environmental protection & management of impacts (dust, noise) Clarifying future dredging programs & materiality placement options Management of port buffers Ensuring climate change resilience ECONOM I C Activating & supporting the mid-west economy Facilitating trade growth Providing confidence for investment Ensuring infrastructure investment is economically viable Facilitating anticipated commercial shipping fleet growth Sustaining & activating investment in fishing boat harbour Promoting cargo diversity PORT DE VE LOPMENT Protecting of port access/ supply chains (sea channels) Protecting of port access/ supply chains (rail) Protecting of port access/ supply chains (road) Ensuring well planned utilities (water, power, telecommunications, sewerage) Consistency with State & Commonwealth regulations (policy alignment) Clarifying relationship between Geraldton & Oakajee Facilitating navy vessels within port 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 I MPORTANCE TO S TAKEHOLDER S 3 . 5 3 . 9 4 . 3 4 . 7 I MPORTANCE TO MWPA I MPORTANT VERY I MPORTANT 3 . 9 4 . 3 4 . 7 I MPORTANT VERY I MPORTANT 1 2 3 4 5 9 6 7 8 11 10 13 12 15 14 16 17 20 18 21 19 22 23 F I GURE 8 Engagement Outcomes 22 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020
S TAGE 2 Stage 2 involved the preparation of various development concepts which were subjected to a multi-criteria analysis (MCA) to assess their strengths and weaknesses. The ten criteria used in the MCA included: ■ Operability – berth; ■ Operability – landside; ■ Minimising navigational complexity and increasing safety; ■ Environmental impacts; ■ Social impacts; ■ Opportunities to support enabling infrastructure and regional development; ■ Timeframe and ease of obtaining relevant approvals; ■ Scaleability; ■ Financial aspects; and ■ Construction fronts/schedules. S TAGE 3 Stage 3 included release of a draft PMP and a period of public consultation from October to December 2019. During the public consultation period MWPA engaged with stakeholders and the broader community in the following ways: ■ Displayed the draft PMP on the MWPA website, in the MWPA offices and at the Geraldton Public Library; ■ Held a series of Information Sessions, including Staff Information Sessions throughout the Port, Stakeholder Information Sessions in Perth and Geraldton and an open Community Information Session in Geraldton; ■ Presented the draft PMP to the City of Greater Geraldton and Shire of Chapman Valley Councils, and to other organisations upon request; ■ Hosted a pop-up session in Rock’s Laneway in Geraldton to answer community questions about the plan; and ■ Promoted the draft PMP through print and social media. Process and Methodology S ECT I ON 4 Twenty six submissions on the draft PMP were received from a variety of government stakeholders, commercial entities, not-for-profit groups and residents. These submissions have been considered by the MWPA Board of Directors and, where considered relevant, amendments to the PMP have been made. 23 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020
TRADE FORECA S T SCENAR I OS The PMP considers four trade forecast scenarios for a range of commodities and how these scenarios would affect total Port throughput volumes, which are described in Mtpa. The scenarios and corresponding trade volumes are depicted in Figure 9 below and summarised in Table 1. These include: ■ Low Growth: Considers existing trade and possible cessations that would lead to a reduction in throughput; ■ Moderate Growth: Considers existing trade and likely known prospects; ■ High Growth: Considers moderate growth plus contestable projects; and ■ Super-High Growth: Considers high growth and all known prospects in the Mid West catchment area, including those that are highly speculative and longer term. The trade forecasts looked at throughput that could be achieved over a 30-year timeframe, however project timings are uncertain and largely dependent on commodity price fluctuations. For example, a sustained increase in the iron ore price may bring forward the timeframe for one or more high volume (i.e. 10 Mtpa) projects. The principle observations drawn from the analysis of the forecast scenarios are: ■ The design scenario used for the PMP is the ‘high growth’ scenario, which was forecast out to a 30-year horizon. This was determined to be an appropriate design scenario, as it will enable MWPA to ‘future-proof’ its development by accommodating realistic potential growth in the Mid West economy and avoid a situation where economic opportunities are lost due to a lack of foresight. ■ The capacity of the existing Port infrastructure has been estimated at between 23 and 28 Mtpa depending on the commodities mix, as certain cargo cannot coexist on the same berth or within the same storage facilities. This means that the existing infrastructure could cater Trade Forecast Scenarios and Infrastructure Needs S ECT I ON 5 for the majority of the ‘moderate’ growth scenario. It is noted that the maximum throughput achieved to date has been 18Mtpa. Port Maximisation (described in Sections 6 and 7) will cater for throughput of up to 50 Mtpa, depending on the commodities mix. This will accommodate some, but not all, of the growth associated with the high growth scenario. On this basis, the projects proposed over the next 15 years have been designed so not to preclude further Port expansion should economic growth necessitate this. “ A Port Master Plan seeks that you do not do today what you must undo tomorrow. ” 24 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020
F I GURE 9 Trade Forecast Scenarios to 2050 1 1 . 8 M T PA 2 6 . 5 M T PA 8 5 . 9 M T PA 1 3 0 . 3 M T PA LOW GROWTH SCENARIO MODERATE GROWTH SCENARIO HIGH GROWTH SCENARIO SUPER HIGH GROWTH SCENARIO Status Quo Possible cessations Low + Likely Known Prospects Moderate + Contestable Projects High + All Known Longer Term Prospects TIME TONNE TIME TONNE TIME TONNE TIME TONNE EXISTING CAPACITY PORT MAXIMISATION PORT EXPANSION 25 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020
TAB L E 1 Trade Forecast Scenarios to 2050 TOTA L 1 1 . 8 M T PA ( L OW ) 2 6 . 5 M T PA ( M E D I U M ) 8 5 . 9 M T PA ( H I G H ) 1 3 0 . 3 M T PA ( S U P E R H I G H ) IRON ORE 8 Mtpa Up to 20 Mtpa 31 to 78 Mtpa Up to 105 Mtpa AGRIBULK 1.86 Mtpa 3.83 Mtpa 5.68 Mtpa 5.68 Mtpa MINERAL SANDS & CONCENTRATES 1.7 Mtpa Up to 2.28 Mtpa Up to 7.11 Mtpa Up to 17.68 Mtpa CRUISE SHIPS & TOURISM 10-12 Vessels pa Fishing Boat Harbour Tourism 11-17 Vessels pa Fishing Boat Harbour Tourism 11-28 Vessels pa Fishing Boat Harbour Tourism 28+ Vessels pa Fishing Boat Harbour Tourism LIQUID BULK 0.25 Mtpa 0.4 Mtpa 0.6 Mtpa 0.9 Mtpa CONTAINERS , BRE AK BULK & CONSTRUCTION SUPPORT Break Bulk: 27 ktpa Break Bulk: 27 ktpa Break Bulk: 56 ktpa Containers: Up to 2,000 TEU Break Bulk: Up to 71 ktpa Containers: Up to 2,000+ TEU LNG Nil Nil Nil Perhaps 0.5 to 1.0 Mtpa AQUACULTURE Aquaculture: 250 - 1,000 tpa Aquaculture: 10,000 - 20,000 tpa Aquaculture: 20,000 - 48,000 tpa Lobster: Total growth of 5-10% Aquaculture: 48,000+ tpa 26 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020
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I NF RA S TRUCTURE NE EDS Through analysis, the infrastructure requirements to cater for the high growth scenario were determined. Berth capacity, rail capacity, road capacity and land capacity were all considered, with the outcomes summarised in Tables 2-4. Main Harbour Berth Infrastructure Berth infrastructure requirements in the main harbour were determined considering current commodity throughput achievable per berth, using vessel data from 2012-2018 and including existing materials handling infrastructure. Fishing Boat Harbour Marine Infrastructure Jetty capacity in the FBH was calculated based on vessel days occupied per metre of space, due to the length of vessels calling allowing multiple vessels to berth simultaneously. This was undertaken modelling the low, moderate and high number of forecasted vessel calls and assumes: ■ Historical vessel split between FBH jetties is maintained; ■ Historical average vessel length is maintained; ■ Historical average time alongside is maintained; and ■ Maximum berth occupancy of 70% of total berth length to account for spacing and different vessel sizing. The results of the FBH capacity modelling suggests that it unlikely that there will be capacity issues over the forecast period at any of the jetties, with berth metre occupancy levels remaining below 45% for the high growth scenario. Rail Infrastructure Additional rail and rail dumper infrastructure will be required to meet the high-growth scenario requirements of bulk-centric commodity throughput. As is evident in Table 3, the existing capacity of the main line will be sufficient to cater for growth under the moderate scenario, however under the high growth scenario there could be a substantial gap in capacity over a 30 year timeframe. This could be offset in part by transporting iron ore by slurry pipeline instead of trains, as iron ore is envisaged to comprise 85% of the product shipped via rail in the projections in Table 3. The impacts of increased rail traffic, including noise and dust will also require careful consideration and management. With respect to the rail dumpers, whilst Car Dumpers 2 and 3 (owned by private proponents) are considered generally sufficient to cater for projected growth, the MWPA common user car dumper will not be equipped to accommodate the moderate scenario under a 30-year timeframe. As a result, additional rail dumpers, and/or alternative transport infrastructure such as a slurry pipeline or pipelines, will be necessary. Renewable Energy Infrastructure To support the world’s transition to a decarbonised future, Western Australia’s resources sector has the opportunity to further diversify into renewable energy production and export, including renewable hydrogen. In alignment with the Western Australian Renewable Hydrogen Strategy, the PMP supports the development of hydrogen export infrastructure at the Port of Geraldton. ‘Providing affordable and clean energy’ is one of the United Nations Sustainable Development Goals to which the PMP is aligned. Trade Forecast Scenarios and Infrastructure Needs S ECT I ON 5 28 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020
R A I L COM P ON E N T E X I S T I N G C A PAC I T Y E X I S T I N G T H RO U G H P U T F O R E C A S T – MO D E R AT E F O R E C A S T – H I G H Main Line 3,936 trains / annum 2,436 trains / annum 16.6 mtpa (2,715 trains) 47.1 mtpa (10,089 trains) R A I L COM P ON E N T E X I S T I N G C A PAC I T Y E X I S T I N G T H RO U G H P U T F O R E C A S T – MO D E R AT E F O R E C A S T – H I G H Car Dumper 1 (MWPA) 9 mtpa 3.6 mtpa 29.9 mtpa 46.9 mtpa Car Dumper 2 (KML) 12 mtpa * (16 mtpa possible) 8.4mtpa 16 mtpa 16 mtpa Car Dumper 3 (CBH) 1.8 mtpa 0.654 mtpa 1.3 mtpa 2 mtpa COMMO D I T Y E X I S T I N G B E RT H S ( # A N D I D E N T I T Y ) P OT E N T I A L B E RT H S ( # A N D I D E N T I T Y ) E X I S T I N G O P E R AT I N G C A PAC I T Y ( M T PA ) M A X I M I S AT I ON O F E X I S T I N G O P E R AT I N G C A PAC I T Y ( M T PA ) Iron Ore 2 (B5 + B7) 1 (B6) 16.6 42 [1] Mineral sands & mineral concentrates 1 (B4 + B6) 3 (B1/2 + B4 + B9) [2] 3.2 4-5 Fuel 1 (B6) 1 (B8) [3] Sufficient Sufficient Agricultural bulk 1 (B3) 1 (B3) 3.3 5-6 Project cargo / Cattle / Container / Unknown 1 (part use of B6) 1 (part use of B6) Part of B6 Part of B6 LNG / Hydrogen 0 2 (part use of B6 and/or B1/2) 0 5,000 – 30,000 tonnes per annum (0-5 years) Processing and storage at Narngulu Cruise No dedicated berth 1 (B8) Uses B3 on ad hoc basis, however impacts on Berths 2/4 New dedicated berth Oil and Gas Service Facility Limited ad hoc capacity at FBH and existing commercial harbour 1 (B1/2) Limited ad hoc capacity at FBH and existing commercial harbour Limited ad hoc capacity at FBH and existing commercial harbour Aquaculture Limited ad hoc capacity at FBH Limited ad hoc capacity at FBH Limited ad hoc capacity at FBH Limited ad hoc capacity at FBH [1] Upgraded B5 and B6 allow for 13 mtpa/annum each, and B7 allow for 16 mtpa [2] Assumes upgraded B1/2 to accommodate increased vessel size and loading equipment, and loss of B6 to iron ore [3] Assumes all fuel will use B8 TAB L E 2 Berth infrastructure capacity TAB L E 3 Rail Infrastructure capacity 29 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020
COMMO D I T Y / I N D U S T RY / O P E R AT I ON I N F R A S T R U C T U R E R E Q U I R E D F O R H I G H S C E N A R I O E X I S T I N G I N F R A S T R U C T U R E G A P ( E X I S T I N G TO H I G H S C E N A R I O - 3 0 -Y E A R T I M E F R A M E ) Iron Ore Storage area Process area Rail line Rail Dumpers 24 ha 4.3 ha Min 2 lines (with slurry) 3 (with slurry pipeline) Storage area Process area Rail line Rail Dumpers 7.5 ha - 1 2 16.5 ha 4.3 ha 1 2 Mineral Concentrates Storage area Road dumper 29 ha 2 Storage area Road dumper 3.2 ha 1 25.8 ha 1 Mineral Sands Storage area Road dumper 5.8 ha 1 Storage area Road dumper 4.3 ha 1 1.5 ha Sufficient Mineral Oils (Fuel) Storage area Adjacent to MWPA land Storage area Adjacent to MWPA land Sufficient Aquaculture Storage / process area 2-11 ha Storage / process area 0.3 – 1 ha Assume 6 ha Agribulk Storage Yes, growth in Narngulu Storage and staging area 12.1 ha None Cruise Passenger transfer area Passenger transfer area Berth 3 or Berth 6 - Passenger transfer area Tourism Tourist facilities e.g. eateries, port tours, viewing areas Port leases Eatery at FBH; GFC tours, Abrolhos Island cruise n/a Subject to further analysis Access corridors Road Rail Material Handling Concentrate Pipeline Utilities Existing Existing + new Existing + new New Existing + new Road Rail Material Handling Conc. Pipeline Utilities John Wilcock Single rail Various MH None Power, Water, sewerage, Telcom Subject to further analysis TAB L E 4 Land Requirements and Availability 30 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020
Road Infrastructure Capacity modelling for truck movements under the high growth scenario over a 30 year timeframe indicated that, if the majority of additional tonnages to the Port were shipped via road: ■ Along the John Willcock Link, the in/out bound peak could reach approximately 170 heavy vehicles per hour, which includes vehicles heading in both directions (i.e. 85 one way); ■ Average traffic volumes are predicted to increase to 39 heavy vehicles per hour, compared to the current average of 8 heavy vehicles per hour; and ■ Iron ore and dry bulk are projected as the commodities to incur the most truck movements per day, with iron ore anticipated to generate 38% of the total truck movements. However if this commodity was shipped by rail or pipeline the numbers would reduce accordingly. Intersection modelling indicated that the existing road network has sufficient capacity to accommodate these increases and maintain an acceptable Level of Service, however it is noted that at present heavy vehicle traffic from the north passes through a developed urban area, which already causes a degree of community concern from an amenity and road safety perspective. It is anticipated that this concern would grow with a substantial increase in traffic volumes and the development of an alternative heavy haulage route is preferred. Furthermore, the intersection modelling did not account for potential growth in light vehicle traffic, which may negatively affect the Level of Service and further strengthen the case for an alternative route. Land Availability Sufficient land availability will be critical to enable the Port to respond to and cater for economic growth. The location of the Port is somewhat constrained given the proximity of other land uses. To meet the demand anticipated in Table 4, additional land will be required within the current Port boundary (by change of land use or creating of new land), in the adjacent precincts zoned ‘Special Use 4’ and ‘Light Industry’ under the City of Greater Geraldton Local Planning Scheme No. 1 (LPS1), in the Southern Transport Corridor and within the Narngulu Industrial Area. Long-term growth can be achieved by further outward expansion at the Port of Geraldton or alternatively the development of the Port of Oakajee, as discussed in Section 8. The current LPS1 zoning of the Port and surrounding areas is included as Figure 10, and the anticipated land needs associated with a high growth scenario over a 30-year timeframe are shown in Table 4. It is noted the total ‘gap’ of 54.1 hectares would enable throughput of approximately 85.9 Mtpa per annum, which would also require some form of Port expansion in terms of berth capacity beyond maximisation of the current footprint. Therefore this gap could partially be met through land reclaim associated with a future port expansion or the development of an alternative Port location. Trade Forecast Scenarios and Infrastructure Needs S ECT I ON 5 31 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020
F I GURE 1 0 Zoning Map, City of Greater Geraldton Local Planning Scheme No. 1 32 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020
33 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020
The overarching PMP Strategy is intended to provide high-level guidance as to how the Port of Geraldton can develop over time to accommodate increased trade and support economic growth in the Mid West. It ensures that short-term developments do not jeopardise land and infrastructure required for long-term growth. KE Y FOCUS ARE A S The PMP strategy comprises five principle focus areas, namely: 1. Maximisation of the existing main harbour and Fishing Boat Harbour; 2. Development and integration of land south of Marine Terrace; 3. Protection and growth of transport and infrastructure corridors; 4. Development of an inland Port at Narngulu, including storage and inter-modal transfer; and 5. Long term Port Expansion (Refer Section 8). Focus areas 1 – 4 are conceptualised spatially in Figure 11 and outlined in brief below. 1. Port Maximisation - This focus includes projects to maximise the efficiency and development opportunity that exists within the existing Port area, to increase the Port throughput to a maximum level without significant changes to the surrounding Port environment. At a high level, the Port Master Plan considers maximisation of the existing Port layout via the following items: ■ Deepening / widening of existing berth pockets; ■ Improving cargo load rates; ■ Developing a new materials handling corridor; ■ Managing surge through the procurement of additional Shore Tension Units and implementing mooring optimisation strategies; ■ Upgrading Berths 1 and 2 as these are currently underutilised due to aging infrastructure and surge exposure; ■ Developing two new berths (8 and 9) within the existing basin; ■ Reconfiguring commodity and berth allocation; ■ Increasing train lengths; PMP Strategy S ECT I ON 6 ■ Improving infrastructure and supporting the development of new industries within the FBH; and ■ Improving both marine and landside operations. These projects and other key actions are spatially depicted and described in Section 7. 2. Development and Integration - This focus area includes the identification, procurement, rezoning (where necessary) and development of surrounding areas adjacent to the Port boundary, to preserve and protect land critical to sustainable Port operations. It also involves integrating new and existing bulk handling materials facilities and corridors to cater for multiple users and commodities. 34 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020
F I GURE 1 1 Key Focus Areas – Port Maximisation Develop & Integrate Narngulu Intermodal Inland Port Develop & Protect Geraldton To Narngulu Infrastructure Corridor (GNIC) Maximise Materials Handling Corridor Transport & Infrastructure Corridor 35 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020
36 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020
PMP Strategy S ECT I ON 6 3. Protection and Growth of Transport and Infrastructure Corridors - This focus area recognises the importance of the Southern Transport Corridor (STC), which currently provides road and rail infrastructure, in the continued growth of the Port of Geraldton. It identifies that minor expansion of the rail corridor to the south is likely to be required to cater for future enabling infrastructure such as potential additional rail lines, pipelines, and utilities. This will assist in the evolution of the STC into a multi-use Geraldton-Narngulu Infrastructure Corridor (GNIC) which is consistent with the current Local Planning Scheme designation of the land as a ‘Special Purpose - Infrastructure Corridor’ Reserve. Any widening of the GNIC may require land acquisition, reconsideration of existing Reserve management arrangements, and, where necessary, rezoning. In the longer term, a solution will need to be determined to protect the corridor from coastal erosion. 4. Development of an Intermodal Inland Port at Narngulu - This focus area includes the identification, procurement, rezoning (where necessary) and development of land in the Narngulu Industrial Area for port related uses, with access to the Port provided via the GNIC. It is envisaged that this supply chain hub will be attractive to low volume / high value cargos that can withstand an additional transportation cost. MWPA does not support open stockpiling of materials within the Port and, with the exception of talc, all commodities are currently stored within sheds and transported via covered conveyors. MWPA ensures its operations comply with its Environmental licence and routinely montiors air and water quality and noise. These standards and practices would also apply to MWPA controlled land within the inland Port to ensure impacts on the adjacent environment are minimised. T I M I NG The focus areas each lend themselves to a natural development horizon. The initial four focus areas are anticipated to be achieved within the short to medium term (0 -15 years). This will enable throughput of approximately 50Mtpa through the Port of Geraldton. Once all the projects associated with these focus areas have been realised, any additional trade volumes will require a decision on Port expansion. 37 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020
In addition to articulating a strategic development vision, it is important that the PMP identifies projects that will help achieve the short to medium term focus areas over a 15 year timeframe to support both existing and emerging industries. Figures 13-16 and Tables 5-8 spatially depict key projects that are proposed to be commenced in four key asset classes - marine structures, land, rail and road - with a short summary provided for each project. MWPA has considered potential project staging, however this is difficult to quantify as in many cases the timing is highly dependent on variables that are outside the control of MWPA. Some projects have already commenced or may be completed in a manner of months, whilst other more complex projects may take five years or more. Some projects are also dependent on other actions being realised, such as purchase or reservation of land and investment decisions by government agencies and proponents. Additionally, market conditions may mean that some projects are brought forward or deferred. Notwithstanding this, a programme for the next 5 years has been prepared and is set out in Table 9. 0 - 5 YE AR PRO J ECT S Order of magnitude costs have been prepared for the items set out in Figures 13-16, with a total cost estimate of $958 million. It is envisaged that approximately $267 million of this investment will be made from public sources, with the majority ($691 million) coming from private sources. It is noted that public sector investment would be subject to preparation and acceptance of Business Cases. It is anticipated that the 0-5 year programme will require investment of approximately $387 million, with $151 million coming from public sources. Port Maximisation Plan Short to Medium Term Projects S ECT I ON 7 38 MIDWEST PORTSPORT OF GERALDTON MASTER PLAN JUNE2020
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