State budget could have done more for Wollongong

The NSW Budget handed down on 17 June 2014 s big on transport investment in Sydney and except for the Princes Highway, small on transport investment in Wollongong.

Sydney's expensive West Connex, which in part  is funded by the Port Kembla lease proceeds,  will do nothing for Wollongong and Port Kembla.  So also, as noted by Alan Mitchell (Abbott must  promote competition, AFR June 25), will spending part of the port lease and other privatization proceeds on "…politically attractive but low-value assets such as the NSW government's proposed North West Rail link in Sydney." 

Quite simply, the Mt Ousley road already has too many heavy trucks on it and is congested at peak hours, whilst the Wollongong-Sydney railway is congested for all day and most of the night.  If Port Kembla is to grow, Maldon Dombarton is needed. 

The NSW Government needs to take a more balanced approach between Sydney and the rest of NSW.

A bridge too far?

At a public meeting held 17 June at Thirroul held to discuss the parking problems caused by last October's   train timetable changes, Heathcote MP Lee Evans said the  NSW government was looking at ways to deal with the "pinch points" caused by the tunnels at Stanwell Park. His idea is a new Sea Cliff style bridge.

Wollongong Transport Coalition can remember in 1998 how Action for Transport 2010 promised faster trains with a new Waterfall Thirroul route with a longer tunnel. Plus their 2003 options of track straightening near Helensburgh.

With challenging rail and road problems facing Port Kembla's bid to lift throughput from 4.35 to 16 million tonnes per year,  it would be much better for the NSW Government to take a close look at Maldon Dombarton.

 Maldon Dombarton would also get coal trains out of Sydney's inner west and Illawarra lines.

http://www.illawarramercury.com.au/story/2364063/maldon-dombarton-line-more-effective-than-rail-bridge-expert/

Port Expansion without Maldon Dombarton is flawed

The new owners of Port Kembla have asked the NSW Department of Planning to approve expansion of its Outer Harbour to increase the volume of bulk cargo from 4.25 to 16 million tonnes per annum. 

The Department's website

http://majorprojects.planning.nsw.gov.au/index.pl?action=view_job&job_id=6002

states that "All additional bulk cargo volumes would be transported by rail. "

That is an extra 11.75 million tonnes a year.  Yet, only in February 2014, this Department agreed with quarry operator Boral that it could not find extra capacity on the South Coast rail line for just half a million tonnes of quarry products. 

Approval was then given for the company to put extra heavy trucks on Mt Ousley and other roads.

In other words, our  rail network is supposed to find space on for an extra ten or more million tonnes a year of bulk freight, when it cannot even find enough space for an extra half a million tonnes of freight on rail.

The current application to expand Port Kembla notes three options:

1. more modern freight trains, 

2. making more use of the Unanderra to Moss Vale rail line,

3.  the option of completing the Maldon Dombarton rail link

However, more modern freight trains will not generate extra paths, and the line to Moss Vale has steep grades and extra distance to Sydney. This is a recipe for more loads on roads.

When earlier Port expansion was under review in 2010, the RTA  stated that if the predicted rail mode share could not be achieved, there would be likely,   "… unacceptable impacts to road safety and traffic  efficiency as well as environmental issues such as amenity, noise and  air quality."

The only realistic option is to complete the Maldon Dombarton rail link.

Work was started on this 35 km rail link in 1983 by the Wran Government and stopped in 1988, Since then, there are now a lot more freight and passenger trains on the line. At an expected cost of about $650 million, it is less than the $960 million for the  South Sydney Freight Line opened last year.

There is the question of who pays to complete the new link:  the State Government that started it, the Federal government who have sponsored ongoing to date studies and or the private sector. Completion of the line, one third built already, is much more likely to proceed if the State Government was to support the new railway.

Given the $790 million paid for the lease of Port Kembla and matching the $340 million committed from the NSW Government to Newcastle for the lease of their port, there is scope for some NSW funding. 

MALDON DOMBARTON

              Before the September 2013 federal election, the outgoing government was prepared to allocate $50 million towards advancing completion of the Maldon Dombarton rail link.

            However, in a wide ranging speech focussing on rail freight made by the Deputy Prime Minister and the Minister for Infrastructure and Regional Development, the Hon Warren Truss MP, on 28 November 2013 at an AusRAIL Conference in Sydney, no mention was made of the Maldon Dombarton link.

            WTC hopes that this was an oversight, and that the new federal government be prepared to match the offer, in full or in part, of the outgoing government, to allocate $50 million towards advancing the Maldon Dombarton link.

            As above, we would also like the NSW Government to show more interest in completing this 35 km rail link.

WOLLONGONG NEEDS MORE THAN $100 million

         Minister for the Illawarra the Hon Greg Pearce MLC was in Wollongong on 15 July to confirm the region would only receive $100 million for the long term lease of Port Kembla, for which some 90 applications had been received.

         There are three good reasons for increasing this amount which was on offer in 2012 when there was still an opportunity for the NSW Government to lease Port Kembla separately from Port Botany. 

Firstly, Port Kembla has been leased with Port Botany, likely delaying a container port for this region by a decade.

Secondly, an unexpectedly high amount of $760 million was received for  the long term lease of Port Kembla.

Thirdly, Newcastle is now to receive $340 million for the lease of its port, of which up to one half of this amount  will be spent on rail works.  

          The value of a container facility at Port Kembla to the Wollongong region was estimated in the year 2000 to be $400 million.

         In the meantime, there is a growing case for completion of the Maldon Dombarton rail link. This includes Boral seeking to put more quarry products on Mt Ousley and other roads because their rail freight operator, Pacific National, has been unable to secure an extra freight path on the Wollongong to Sydney train line.

         There is a good case for the NSW Government to at least double the compensation to the Illawarra and to apply the increase to help expedite the completion of the Maldon Dombarton rail link.

News Postings

http://www.abc.net.au/local/stories/2013/07/15/3803234.htm

http://www.illawarramercury.com.au/story/1580677/budget-illawarra-the-loser-as-newcastle-wins-huge-chunk-of-port-cash/



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Is it good for Wollongong that Mr. Nick Whitlam chairs the boards of both Port Kembla and Sydney Ports?

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In late February Treasurer Mike Baird and Roads and Ports Minister Duncan Gay announced the appointment of Nicholas Whitlam as Chairman of Sydney Ports Corporation.

This was in addition to his role as Chairman of Port Kembla Port Corporation.

Mr Baird said in a statement  “I’m sure his experience will be invaluable in his new role, as the Government prepares for the long term lease of Port Botany and Port Kembla.” 

In 2003 the NSW Carr Government released a NSW Ports Growth Plan. This set the scene for moving car imports to Port Kembla and an inquiry held by a NSW Legislative Council Committee. Their 2005 Final Report into Port Infrastructure in NSW gave recommendations, including “that the NSW Government consider completion of the Maldon to Dombarton line…”

This report also states  "that a container terminal at Port Kembla could potentially contribute $400 million to the regional economy." In todays terms this is over $500 million.

However, if the NSW Government leases Port Kembla and Port Botany to the same private sector company, there would be a reduced incentive to develop Port Kembla as a container port.

Quite simply, a common owner or leaseholder of both Port Kembla and Port Botany is likely to continue to use Port Botany as a sole container port for as long as possible. In this case, development of Port Kembla to handle containers and completion of Maldon Dombarton would be delayed.

In this case, the promised contribution of $100 million to regional infrastructure should be increased to regional value of a container port at Port Kembla. That is $500 million.