Australasian Feature Second Lead
A sign ofincreasing optimism about trade between Australia and Asia, Hutchison PortHoldings (HPH) has finalised an agreement with Sydney Ports Corporation for thedevelopment and operation of the third container terminal (T3) at Port Botany.
Construction of T3 has already begun and the new terminal (leased on a 30 year basis) is expected to commence operations in 2012.
It will have a total quay length of 1,850 metres, five shipping berths and a 63-hectare terminal yard, of which HPH will operate four shipping berths with 1,300 metres of quay line and 46 hectares of yard.
Hutchison Ports had been tipped as a front-runner because it had already made inroads into the Australian market at Brisbane. However each of the incumbents – DP World and Patrick – had argued that returns on capital investment for all three players will be diluted as a result of spreading the existing and projected throughput.
The two incumbent stevedores have also rejected claims by the Australian Competition and Consumer Commission that they are making excessive profits.
The latest monitoring report on stevedoring suggested the Australian sector was achieving double or more what similar companies were achieving internationally, including in NZ.
The Commission concluded that “opportunities for more intense competition could provide the necessary impetus over the next decade for increased efficiency in stevedoring services”.
However this met with strong rebuttals from the stevedores, with DP World arguing the report ignored capacity and productivity improvements arising from investment in new equipment.
Asciano, the parent of Patrick, says the report actually showed pricing in real terms had reduced by 35% in a decade.
