Talk is up for regional ports

But in an uncertain economic climate, with bulk and non-bulk sectors hit hard by the global trade slump, sustained and sizeable investment is needed.
And now is the time for that investment to begin flowing.
For some ports, ownership consolidation could also be needed.
An even balance of city-dwellers and regional colleagues convened at the fourth annual Regional Ports conference held in Newcastle last week.
The conference heard that there had been a rush for funding from both the Federal Government stimulus package and its allocations as advised by Infrastructure Australia.
Ports Australia executive director David Anderson said the organisation had, like many such bodies, formed a close relationship with the advisory group.
Mr Anderson described the many funding applications as a “funding scrum” and said the transport industry had to do better to promote its economic benefits.
He told the conference that Australia’s three levels of government needed to engage the general public on the advantages of infrastructure to the same degree as health care.
All levels of government had struggled to coordinate their investment in regional ports and the supporting supply chains, he said.
Mr Anderson said there remained “wavering uncertainty” about port trade around Australia, with some ports seeing drops of up to 50% in their cargo volumes since the global economic crisis began.
However compared with the capital cities, regional ports were still holding up well in “a sluggish economic environment”.
That meant there was a need for a government focus on regional investment.
“Issues of substance are not exclusively the domain of capital cities,” Mr Anderson said.
“We must keep sending positive messages about the billions being spent on these ports.
“The best bang for your buck at the moment is investment in infrastructure.”
Commonwealth Bank senior vice president and head of infrastructure solutions Milka McNamara told the conference that the global financial crisis had threatened infrastructure investment right at the time it was most needed.
Infrastructure
Crucial infrastructure investment would not occur unless the banks freed up more money, she said.
“For the system to work, money needs to be flowing – Australian banks need to lend to each other,” Ms McNamara said.
“It really is in government hands – the projects are getting bigger, not smaller.”
Banks were reluctant to lend to one another since they lost confidence in who would still be operating next week.
GHD Meyrick Wollongong manager Louise Meyrick said freight infrastructure was still seen as independent to much of the other crucial investment decisions being made.
“Ports don’t exist and cannot exist in a vacuum,” Mrs Meyrick said.
“The need is greater in regional ports than in capital cities.”
However many states had failed to adequately plan for the transport task they now face and still lacked “a sensible freight strategy”, she said.
Mrs Meyrick said funding tended to be allocated based on political reasoning instead of need, adding that a “very, very patchy” metropolitan strategy in NSW had only a “very skinny reference to freight”.
The trend was mirrored across many other states which had struggled to develop a plan which coordinated investment in road, rail and port investment.
Mrs Meyrick called for integrated planning to also take into account the other social impacts such as housing affordability in areas such as the Pilbara.
The conference was also told of the need for consolidation of port control and strategy where it benefited particular regions.
Merger talks earlier this year between New Zealand’s Port of Tauranga and Ports of Auckland were ultimately unsuccessful, but Tauranga chief Mark Cairns, while not referring to those talks, said it was clear that consolidation in New Zealand was needed.
Mr Cairns also told the conference that New Zealand exports were holding up well despite the global economic downturn.
On the issue of port management, Mr Cairns said he was “still unsure why New Zealand needed 16 commercial ports”, arguing that the “fragmentation and over-capitalisation” of the country’s ports was ultimately counter-productive in achieving efficient and cost-effective trade.
Tasports chairman Dan Norton said the success of the port consolidation in Tasmania – which brought all the state’s ports under the same management in 2006 – was a sign that such a move was achievable given the right planning.
Dr Norton said Tasports was not yet willing to label the amalgamation a success, but was pleased with the progress.