8cbc146702a517e-Intermodal Freight Terminal Feasibility Study - Final

Geelong Intermodal Freight Terminal Feasibility Study: Final Report

Feasibility Study: Final Report

Copyright This work is copyright © 2007 Meyrick Consulting Group Pty Ltd The Copyright Act 1968 permits fair dealing for study, research, news reporting, criticism or review. Selected passages, tables or diagrams may be reproduced for such purposes provided acknowledgment of the source is included. More extensive reproduction permission must be obtained from the consultant whose contact details are shown below.

Disclaimer Meyrick and Associates professional advice is prepared for the exclusive use of the party or parties specified in the report (the addressee) and for the purposes specified in the report. The report is supplied in good faith and reflects the knowledge, expertise and experience of the consultants involved. Meyrick and Associates accepts no responsibility whatsoever for any loss occasioned by any person acting or refraining from action as a result of reliance on this report, other than the addressee.


Copyright This work is copyright © 2007 Meyrick Consulting Group Pty Ltd The Copyright Act 1968 permits fair dealing for study, research, news reporting, criticism or review. Selected passages, tables or diagrams may be reproduced for such purposes provided acknowledgment of the source is included. More extensive reproduction permission must be obtained from the consultant whose contact details are shown below.

Disclaimer Meyrick and Associates professional advice is prepared for the exclusive use of the party or parties specified in the report (the addressee) and for the purposes specified in the report. The report is supplied in good faith and reflects the knowledge, expertise and experience of the consultants involved. Meyrick and Associates accepts no responsibility whatsoever for any loss occasioned by any person acting or refraining from action as a result of reliance on this report, other than the addressee.


Table of Contents EXECUTIVE SUMMARY ........................................................... ............................................................................................................................ .............................................................................. ............. 2 Key Recommendations...................................................................................................................................................2 Suggested Forward Workplan ......................................... ................... ............................................ ............................................ .......................................... ......................................... ...............................3 ..........3

1.

INTRODUCTION.......................................................................... INTRODUCTION......... .............................................................................................................................. ................................................................ ... 4

2.

DEMAND FOR AN AN INTERMODAL FACILITY FACILITY IN THE GEELONG REGION.................................. REGION................................................ .............. 6 2.1

2.2

2.3 2.4

Target market identification................................................................................................................................6 2.1.1 Dairy processors .......................................... ..................... ........................................... ........................................... ........................................... ........................................ ..................24 24 2.1.2 Grain and malt.................................................................................................................................27 2.1.3 Fertiliser and quarry products ......................................... ................... ........................................... ........................................... .......................................... .....................34 .34 2.1.4 Foodstuffs .......................................... .................... ............................................ ........................................... ........................................... .......................................... ............................37 ........37 2.1.5 Other high potential containerised freight ............................................. ...................... ............................................. ......................................... ....................38 .38 2.1.6 Summary of potential freight task that could be captured by an IMT..............................................39 2.1.7 Success factors...............................................................................................................................40 2.1.8 Phasing .......................................... .................... ............................................ ............................................. ............................................. ........................................ ..............................40 ............40 Bulk and break bulk potential ............................................ ..................... ............................................. ............................................. .......................................... ..................................41 ...............41 2.2.1 Non-container freight.......................................................................................................................41 2.2.2 Victorian freight corridors................................................................................................................41 Commodities by corridor ............................................ ...................... ............................................ ............................................ .......................................... ......................................... ......................42 .42 Potential business ............................................ ..................... ............................................. ............................................ ........................................... ......................................... ...............................44 ...........44 2.4.1 Paper products................................................................................................................................44


3.10.4

4.

Outcomes of considering the Lara site..........................................................................................103

KEY RECOMMENDATIONS .................................................................................................................... 106 4.1 4.2 4.3

Demand for an intermodal facility...................................................................................................................106 Intermodal facility site options ........................................................................................................................106 Workplan going forward .................................................................................................................................106


EXECUTIVE SUMMARY The GHD Meyrick Alliance has been engaged by the Victorian Department of Infrastructure (DoI), Regional Development Victorian (RDV) and the City of Greater Geelong to identify the role an intermodal logistics terminal (IMT) operation would play in enhancing rail freight transport activity in the Geelong region. The study aims to understand the true demand for and interest in using some form of an intermodal facility in the region. The brief identifies four potential sites and asks for an assessment of likely demand for each location, together with an assessment of the suitability of the sites under the criteria of commercial viability; ownership and operational arrangements; and infrastructure capability. The client wishes to identify the key regulatory, policy and infrastructure issues from the study that can be readily translated as inputs into a subsequent business case for the preferred facility. The four sites nominated as options for development are Lascelles Wharf precinct, GrainCorp bunker site (ex Ford Casting Plant land), Heales Road and the Gheringhap Siding. (See Figure 1.) Following the delivery of the final report, a fifth site was identified in Lara (the Lara site). We have now revised our final report to include an assessment of the Lara site against the original recommendations of the feasibility study.


7. Although the Gheringhap and Heales Road sites are both suitable, the decision making matrix ranks the Heales Road site above the Gheringhap option. In particular, we found that the ability to attract business to the Gheringhap site is severely constrained by current supply chains. 8. It was therefore recommended that the development of an intermodal facility be pursued at the Heales Road site. 9. However, since the delivery of the above draft recommendations an assessment of the newly identified site at Lara against the same criteria prioritises its development over Heales Road. 10. Prior to pursuing any development at Lara it is recommended that the various agencies of government determine what the deem as appropriate policy, governance, finance and access arrangement given the private ownership of the land 11. Given clarity on these matters it is recommended that the government negotiate with the owner of the land with the aim of developing an intermodal terminal site that is of mutual acceptance.

Suggested Forward Workplan We propose that the following steps be undertaken as a practical input to the business plans for the development of the final terminal site. 

Confirmation of the preferred option for more detailed evaluation


1.

INTRODUCTION

The four sites identified in the original brief are identified in the following diagram (Figure 1)

FIGURE 1 SITES NOMINATED FOR INCLUSION IN THE FEASIBILITY STUDY*


The clients seeks to understand: 











the current and future freight task for such a facility the key considerations that shippers and transport companies will take into account when considering alternative supply chains the operational requirements for the terminal to meet or to exceed the needs of shippers, whilst also contributing to a sustainable transport system in Victoria the road and rail transport linkages required to cost-effectively manage current and future freight tasks the most prospective commercial and operational models for such a facility the role of different agencies and levels of governments in ensuring the sustainable future of such a facility.

This report outlines the major outcomes of the feasibility study. It provides an overarching assessment of the demand for an intermodal facility in the Geelong area and also assesses the site options available, including the likely degree of industry support. It concludes with initial recommendations and a forward work plan. Following the delivery of the final report, a fifth site was identified in Lara (the Lara site). We have


2.

DEMAND FOR AN INTERMODAL FACILITY IN THE GEELONG REGION

In the first stage of the study, the potential freight task that might be attracted to an intermodal freight terminal in the Geelong region was investigated. This process involved documenting the major current and future freight tasks and supply chain arrangements, as well as developing some broad volume estimates for the regional freight tasks identified. Assessment of the volumes and routes were informed by previous work in the sector and by review of relevant strategic documents, including: 

The DoI Container Origin-Destination Study



The Geelong Rail Access Improvement Project



Freight forecasts developed for the Geelong Strategic Land Use Plan and in strategic work carried out for the port operator, Toll GeelongPort.

Estimates of potential volumes, based on information acquired prior to detailed discussion with industries involved were assembled. These estimates were then validated in stage two through interviews with key executives of companies surveyed. A listing of the stakeholders interviewed for this study is located in the Appendix on page 108.


TABLE 2.1INDUSTRY AND COMMODITY: INITIAL SWEEP OF POTENTIAL FREIGHT AND LOGISTICS TASKS Commodity/ industry

Cluster location

Nature of task

Companies

Company Location

group Dairy processing

South West Victoria



Transport factory to store

MGC

Koroit



Storage – dry and reefer

Nestlé

Dennington (Warrnambool)

Pack and load out exports

Bonlac (Dairy Farmers)

Cobden



Other clusters: 

Gippsland



Goulburn-Murray

(containers) 

Domestic distribution

Warrnambool Cheese & Butter

Allansford (Warrnambool)

Tatura

Irrigation District

Tatura, Vic Outside Victoria: Dairy Farmers Kraft Foods Meiji National Foods Nestlé Parmalat Snow Brand

7

Feasibility Study: Final Report Commodity/ industry

Cluster location

Nature of task

Companies

Company Location

Central, Western and



Harvest



Auspine

Tarpeena, SA



Transport to plant



GTFP

Mt Gambier



Processing (woodchip,



Pentarch

group Forestry

South western Victoria Other clusters: Gippsland (harvest,

sawn timber, semi

processing)

finished products), by-

Portland (storage and SE of S Australia.

Paper

Gippsland



AKD

Colac



Tasco

Lara



Midway

North Shore (port)



SPE

North Shore (port)



Timbercorp

Hamilton

Paperlinx

Morwell (HO Mt Waverley)

Kimberley Clarke

Millicent-Mt Gambier

products

export)





Storage (woodchip, logs)



Transport to export wharf

Import of bleached pulp for paper mills

SE of S Australia 

Geelong and Portland (HQ South Melbourne)

Distribution of finished paper products

8


Cluster location

Nature of task

Companies

Company Location

group Pulp manufacture

SW Victoria



Harvest of raw materials

Protavia

(log)

SE of S Australia 



Heywood, Vic Penola (Kalangadoo), SA

Processing/manufacture Distribution – export/domestic(?)

Fertiliser

Geelong (Lara, North Shore)



Import of raw materials

Incitec Pivot



Processing/blending,

Hifert

manufacture 

Aluminium (smelter)

Geelong



(PointHenry) Portland

Plants and stores - Geelong HQs - Melbourne

Southern Fertiliser

Distribution (domestic) Import of raw materials (bulk)



Smelting



Rolling mill



Storage and distribution

Alcoa consortium

Pt Henry (Geelong) Portland

(domestic) 

Load-out for export (break bulk and container)

9


Cluster location

Nature of task

Companies

Company Location

group Cement

Waurn Ponds



Import of raw materials (gypsum – overseas and

Blue Circle

Waurn Ponds

Boral (?)

S Melbourne

domestic) 

Altona (?)

Distribution to domestic market

Plasterboard

Melbourne – Yarraville, S



Import of raw materials (gypsum – overseas and

Melbourne, Altona

domestic) 

CSR

Yarraville

Boral

S Melbourne

Lafarge

Altona

Distribution to domestic market

Glass

Geelong



Import of sheet glass (ex

Pilkington

Geelong

Dandenong) 

Manufacture of automotive glass



Distribution to domestic auto plants



Exports (Aus input to Thai build cars?)

10


Cluster location

Nature of task

Companies

Company Location

group Automotive

Geelong



Import of steel coil

Melbourne west –



Pressing panels

Broadmeadows and



Altona

Carpet, textiles and

Geelong

Storage/distribution coil



Import fibre (NZ?) and componentry



Storage



Distribution to domestic (export?) market

Warrnambool

Wine

SW Victoria Limestone Coast (SA)

Toyota

Port Melbourne (HQ) Altona (assembly)

Godfrey Hirst

Geelong

Brintons

Breakwater (Geelong)

At least 15 potential companies in the western

Central and western suburbs, Greater Melbourne

suburbs of greater Melbourne.



Processing

Midfield Group (meat)

Warrnambool



Storage – reefer, dry(?)

CRF

Colac



Pack and load-out,

SW Seafoods

Port Fairy

M C Herd

Geelong

domestic and export

Manufacturers:

Geelong (panel plant) Broadmeadows (assembly)

and product

fibre

Meat and seafood

Ford



Bulk inwards and storage

Pettavel

Waurn Ponds



Blend

Scotchmans Hill

Drysdale



Pack and load-out, domestic, export

11


Cluster location

Nature of task

Companies

Company Location

group Manufacturers: Apparel

Manufacturers:

Geelong Ocean Road (Torquay)

Port Fairy

Pharmaceuticals Manufacturers:

Geelong





Storage

Quicksilver

North Geelong

Pack and load-out,

Rip Curl

Torquay

domestic, export 

Manufacture



Domestic distribution



Import raw materials

GlaxoSmithKline

Port Fairy

Omya

North Geelong (Port)

Cheetham Salts

Moolap

(bulk)

Mineral based

Moolap, Geelong north



Processing



Storage and distribution Drying, processing Storage and distribution

Wool

Melbourne west –

Aggregation, storage, dumping

Brooklyn, Footscray,

and packing for export

Brooklyn

Australian Wool Holding

Lara

(AWH) and Elders E P Robinson Techwool Many others…

Laverton

12


Cluster location

Nature of task

Companies

Company Location

group Grain

Lara



Altona North



Aggregate and store grain Pack and load-out for export (containers)

Riordan Grains

Lara

Professional Grain Services

Altona North

(PGS) …others (Cargill etc.?)

Geelong



Aggregate and store grain



Pack and load-out for

GrainCorp

Geelong (Port)

export (bulk and container) Grain - malt

Geelong



Aggregate and store grain

International Malting

Melbourne



Process to malt

Barrett Burston



Geelong (Port)

Store, pack and load-out for export (containers)

13


Cluster location

Nature of task

Companies

Company Location

group Carriers/logistics/ 3PL

Geelong Melbourne west Warrnambool







Road transport Storage and distribution Logistics (3PL etc.)

Kalari (ex Transwest) (Swire)

Norlane Norlane (HQ Mt Gambier)

K&S

Colac

Amezdroz

Moolap

G D Robertson

Geelong South

McColls

Melbourne

Linfox

Melbourne

Toll

Altona

TNT (automotive)

Colac

A&R Neil

Warrnambool

Westvic Containers

North Shore (HQ Melbourne)

IML (Jebsen) Costa Josie’s

14


Cluster location

Nature of task

Companies

Company Location

group Chemicals and

North Geelong



Import raw materials (bulk liquids)

lubricants 



Store, process and blend Storage and distribution (domestic)

Shell (lubricants)

Shell Refinery, North Geelong

Basell (chemicals)

Shell Refinery, North

Terminal Pty Ltd

Geelong

(chemicals and bio-diesel)

North Shore (Port - Oyster

Axiom

Cove) Melbourne Agriculture/ horticulture

Golden Plains



Poultry

Donnybrook Hazeldenes

Bellarine

Steggles (?) 

Retail distribution

Olives

Griffith

Modern Olives



Lara

Murrudoc Olives



Manerim

Villa Olives



Newtown



Wines



Fruit

Costa (?)



DC operation (?)

Costa



15


TABLE 2.2: MAJOR TRADE POTENTIAL Commodity group Dairy

Freight task

Location/supply chain

Potential for IMT

Whole milk is trucked from

SW Victoria (Cobden to Koroit) is the

Although major processors have their own stores and

farm to processing plant.

largest cluster. Supply chain for

distribution chain, there may be opportunity to re-jig this

Product, in refrigerated or dry

products is mostly by road to

over time. Independents may move more quickly.

powder form is stored, usually

Melbourne’s western suburbs, then in

off-site and packed into

containers by truck to Swanson.

containers for export or

Volume known to be in excess of 30,000TEU per annum (500,000 pa plus). Domestic distribution would also be of interest.

domestic distribution.

Major ‘industry cluster’ potential. Forestry

Logs are processed at sawmills

Logs and chips are trucked or railed to

Logs and woodchips are moving now through the port of

or in-plantation.

Geelong (or trucked to Portland).

Geelong,

Sawn timber is packed and

Sawn timber and round wood products

distributed by road to domestic

from mills in SE of South Australia,

markets.

Colac, trucked to Australian east coast

Some added value products are produced or being developed. By

products

are

marketed

markets.

requiring

storage.

However,

neither

is

particularly suited to IFT type operation. Logs are messy to handle and woodchip, being a low value bulk product, relies on proximity to export wharf to maintain viability. Industry has discussed cluster type development for added value products but little progress has been made to date. Total volume 1-2Mtpa but added value volume maybe small (50K tpa).

(chipped or in garden products form).

16

Feasibility Study: Final Report Commodity group Paper

Freight task


Potential for IMT

Major producer of toilet tissue,

Pulp trucked Tantanoola to Millicent

Distribution throughout the eastern seaboard is by road.

facial tissue and paper towel

mill.

Potential for consolidation at Geelong IFT, particularly if

products. Also located on this site is a thermo-mechanical

Products by truck to east coast centres.

pulp (TMP) operation. Paper

Pulp trucked from Portland to the

products are generated from

Millicent mill.

the

SE

of

S

Australia

Mt Gambier/Heywood rail were restored. Could be a target but little competitive benefit over other locations so not high priority for a case study. Trade volumes estimated at 100,000 tpa in total.

(Kimberley Clark). Pulp is sourced locally from their own mill and from South America . Pulp

Bleached pulp

Imports through Portland, Melbourne

Insufficient volume – possibly 25,000 tpa. Also supply

or Geelong. Stored in wharf transit

chain shifts depending on ship calls (semi-liner – call

sheds and thence to mill storage

patterns vary).

(Morwell).

17

Feasibility Study: Final Report Commodity group Fertiliser

Freight task


Potential for IMT

Fertiliser is manufactured or

Import of large volumes of raw

Large volumes involved. Geelong imports total over 1

blended from raw materials

materials

Geelong,

million tpa (2005-06). There was a small export trade,

(rock phosphate, sulfur, urea

Portland, decreasing amounts through

~50,000 tpa but most of the rest would constitute product

etc.). Some is imported in

Melbourne (Maribyrnong).

for distribution.

Storage/manufacture at North Shore

Industry restructuring has made situation dynamic. There

(adjacent to port). Also at Lara (Hifert,

may

Southern Fert).

approximately 20% of the market is already located at

finished product form.

in

bulk

into

Distribution mainly by road throughout Victoria, Southern NSW Aluminium

Import raw materials in bulk.

at

Point

particularly

as

Hifert,

with

Lara. Incitec Pivot has focussed on North Shore, where there may be potential for Lascelles or GrainCorp sites.

Henry.

There may be potential. Although K&S have this market at present, there is some rail potential. Currently interstate as

aluminium in slabs or ingots.

far as QLD goes by taught-liner. WA not served currently.

coils.

activities

potential,

Smelting and production of Slab/ingots for domestic and some

Rolling mill produces sheet,

All

be

export by flatbed truck to Melbourne. K&S have the contract and cart to Altona for packing in containers. Package size varies from 1.5t units to 10t slabs. Other product unitised and shipped through Corio Quay.

Volumes are not known in detail but estimated at 50100,000tpa for domestic distribution or for export to spot markets. Issue may be that product is stored at Pt Henry and trucked/packed and shipped on just in time basis, incurring no third party storage costs. Empty containers held in IMT depot could be a selling point.

18

Feasibility Study: Final Report Commodity group Cement

Freight task


Blue Circle dry kiln cement

Plant

works at Waurn Ponds supplies

700,000 tpa. Imports gypsum (approx

at

Waurn

Ponds

produces

eastern south eastern Australia.

200,000 tpa). Distributes to Dandenong, Somerton

Potential for IMT Supply chain appears to be mature with owned packing and distribution facilities in Dandenong, Somerton. Worth asking but unlikely to be immediate prospect for IMT.

plants by railcar and truck.

Gypsum

Import

material

Gypsum is imported into Victoria by

Supply of all gypsum via Geelong has been discussed,

(Plasterboard)

(gypsum ex S Australia) and

of

sea, currently through Maribyrnong and

with distribution to Waurn Ponds, Altona, Yarraville and

kraft paper.

Geelong. ~50-100,000tpa goes to Blue

Port Melbourne by truck on a J.I.T. basis.

Manufacture

raw

board

distribute Victoria wide.

and

Circle (Waurn Ponds) by road ex Geelong. In Melbourne, it is unloaded by CSR at Yaraville, with up to 40% going to Boral (Port Melbourne) and 15% to Lafarge (Altona).

Carriers (Transwest, Kalari) have shown interest in this previously. Disadvantage for an IFT is that it is bulk material but there is potential. Total volume is 450-500,000 tpa.

19

Feasibility Study: Final Report Commodity group Glass

Freight task Plate

glass

is

trucked

to

Geelong and Laverton from Dandenong for treating and production of automotive glass.


Potential for IMT

Plate glasses in stillages Dandenong to

Volumes not known. There appears to be a mature supply

Geelong.

chain in place, with plants feeding 130 retail distributors

Finished glass in trucks to assemblers

and manufacturers Australia wide.

(Broadmeadows, Altona etc.) and for

Possibilities for an IFT but rail mode may be difficult to

replacement market.

sell.

at

Steel sheet in coil form landed Geelong

There appears little possibility unless space on the wharf

Ford’s Geelong plant, with

(or Melbourne at times). Distributed to

drives off-wharf storage. Then storage and just in time

delivery to Broadmeadows.

Ford Geelong and to Toyota, Altona.

delivery may be feasible.

Possible distribution of car

Distribution

Toll is pursuing imported new vehicles for Geelong.

imports

Broadmeadows (B-triple)

Product used by both new car assemblers and replacement industry. Automotive

Manufacture

if

of

panels

Geelong

is

of

panels

to

Ford

Probability is that they would be stored adjacent to the

successful in attracting the

wharf and either trucked out or, possibly, railed from a

business.

new rail spur into Corio Quay West. Lascelles location becomes of interest although car imports currently planned for CQS.

Carpet, textiles

Manufacture

in

Geelong

involves both import of fibre (ex NZ?) and distribution to domestic export.

markets

and

for

Geelong

Most movement would be in containers so packing facilities and empty depot. Not high volume but high value and specialised handling makes this a possibility.

20

Feasibility Study: Final Report Commodity group Meat and seafood

Wine

Freight task


Meat is being processed and

By

trucked from Warrnambool for

Warrnambool to Melbourne. Some

truck

(reefer

pantechs)

export and domestic markets.

containerised at plant for export.

Wine from several regional

Mostly by road with some export

wineries is being exported and

containers packed at the winery.

Potential for IMT Potential for refrigerated storage and/or industry cluster for foodstuffs (meat, sea-foods, fruit, wine etc.)

See above.

distributed domestically. Manufacturers

Apparel from specialised surf Companies are based in Torquay and

Not high volume but high value may justify a centralised

style

Geelong.

approach to storage, order picking and load out.

Imports or domestic supply of textiles

Cluster potential.

companies

is

stored,

packed and shipped out by road for export and domestic markets. Wool

and componentry.

Wool is aggregated to central

Low volume currently handled in

Geelong has lost this industry with the closure of the Wool

stores

Geelong.

Combers business. An IMT could attract industry back if it

by

road.

Previously

Geelong has been an active

combined lower storage costs with the ability to source

participant but now the cluster

empty containers locally. It would be hard-won business.

appears to be in the Footscray area.

21

Feasibility Study: Final Report Commodity group Grain

Freight task


Coarse grain is mostly handled in bulk. However, there is a relatively small but increasing

Main thrust is currently by: PGS – Altona plant receives grain by

Potential for IMT PGS and Riordens have their own storage, although Riorden may be space constrained at their current site.

road, stores and packs into export

GrainCorp will see possibilities, particularly if the IMT is

containers.

located close to their North Geelong port terminal.

GrainCorp have interest in

Riordens carry out a similar activity at

Worth consideration (in conjunction with malt?) as a case

packing in containers.

Lara.

study. Volumes variable but could be 100,000 tpa plus.

trade

speciality

lines

and

several companies including

GrainCorp plan to compete also. Malt

Malt is processed from barley

The maltsters receive barley in bulk by

in three plants in the Geelong

truck, or ex GrainCorp storage. The

area. The product, in bags or

malt is put in bags or bulker bags and

neo-bulk

containerised for export.

is

distributed

domestically and exported.

Estimated Victorian malt production/sales Domestic 75,000 tpa Export 45,900 tpa (Assuming 60% of Victorian sales is supplied by the two main Geelong maltsters) Potential if aligned with containerised grain sales above.

Carriers/logistics

Road

transport,

storage,

Potential as developers or participants

container pack/unpack etc Chemicals/Lubricants

Mainly liquids produced from

Storage, packaging and distribution

Potential but volume is relatively small and there are risks.

the cat cracker in refineries or

domestically

Not seen as a major user but possible if specialised storage

from

imported

much hazardous.

ingredients;

developed. Removes it from land conflicts if at a remote site.

22

Feasibility Study: Final Report Commodity group Agricultural

Freight task Major

possibilities

increasing broiler

include

development industry

Lethbridge,

plus


Potential for IMT

Inward movement of feed (truck, now

Possibility to target supply chain by consolidating import

of from the port of Geelong).

around existing

processing.

feed and managing product distribution (3PL) through storage at IFT, with cross docking facility.

Refrigerated storage Distribution

domestically

by

road

(exports?) Retail distribution

Storage, order picking, load out and

Potential for wholesale/retail DC operation by 3PL/4PL.

distribution Steel

Steel is imported through the

(non-automotive)

port of Geelong and distributed Victoria wide. Scrap steel is consolidated in Geelong for road move to Melbourne for domestic steel

Transit storage on wharf (Corio S). Distribution by road by taught-liner or flat-deck. Scrap moves in trucks to Melbourne and beyond.

makers or export.

23


As an outcome of the first stage of the study, it was determined that the following supply chain case studies would be the focus of investigation by the Alliance study team: 1.

Dairy processors

2.

Grain and malt

3.

Fertiliser and quarry materials and

4.

Foodstuffs.

In progressing these supply case studies the study team members have held structured interviews with key freight shippers and major transport providers in the Geelong region. In addition to developing information on which to base supply chain assessments, the interview process also provided information on other trade flows that may be of significant potential for the IMT. These traffics may provide support for the base case business. The following sections summarise the case studies that were undertaken and also incorporate discussion of other potential freight traffic which has been identified in the course of our discussions with key stakeholders. As a result of our preliminary interviews we also incorporated the following commodities which appear suitable for transfer through a proposed terminal in the Geelong region: 

Consumer goods


The main dairy processing cluster is in the south west of the State around Warrnambool, within other plants in the north and in Gippsland. Farm milk supplies are trucked to processing facilities where they are packed and distributed as whole milk, and as products for domestic and export markets including dry products (milk powders, whey, lactose etc.), cheese, butter, consumer packs of yoghurts etc., and drums of oils and fats. The industry has been going through substantial change in the last few years but can be described now as reasonably stable. Milk production is generally growing. The domestic market for whole milk being slowly growing, much of the farm milk is now being processed and exports are increasing. It is predominantly the export trade that may be seen as potential for the proposed IMT, although distribution of domestic products is substantial.

Participants The following table summarises the main industry participants with freight tasks relating to the region. Companies

Company Location

Place in market

Freight task


Destination Analysis All imports and exports of processed dairy products noted above would be moving by container to export markets, directly from processing plants or from the distribution centres in Melbourne’s western fringes. The product moving to DCs for storage and packing into containers mainly moves in taut-liner or pantechnicon trucks, temperature controlled where necessary.

Detailed case study: Fonterra Company background A NZ based dairy conglomerate, Fonterra acquired the ass ets and business of Bonlac and now operates the most diverse of the dairy processing businesses in Australia. The activities include processing of dairy products from whole milk at a range of facilities spanning Victoria. Although drought conditions have impacted on production, the growth in milk production overall and the slow growth in whole milk sales mean that exports are growing steadily. In addition, the transnational characteristic of the group has generated increasing imports, both for domestic distribution and for use in processing plants. Consumer items are also brought into the region from Western Australia. Storage is focused on the company owned facility in Altona (the Melbourne Distribution Centre or MDC), although capacity and surge requirements mean external storage also. The result is a large (growing), complex and dynamic supply chain.

8cbc146702a517e-Intermodal Freight Terminal Feasibility Study - Final

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