Port Botany: Functions, Ownership and Management

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Introduction

Sea transport has emerged as the single most important avenue of transporting goods and services from different continents in the last few centuries. The invention of steam engines and efficient fuel occasioned the development of sea vessels with capabilities of carrying bulky and heavy commodities. Various European governments and individuals set out in search of trade leading to the discovery of ports all over the world. In fact, the majority of the ports around the Indian Ocean developed as a result of the trade whereby they acted as stop-over (World Bank 1995). Port Botany developed as a landing point for navigators. The port has developed into one of the largest sea port in Australia transacting a substantial portion of the commercial and business operations in New South Wales. In this essay, a brief introduction to Port Botany in terms of its geographical location and the services it offers, type of cargo handled, dock labour system, infrastructure linkages and mechanisation under utilisation will be presented. In addition, the ownership models and administrative structures will be discussed in tandem with port management models.

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Geographical location

During the last three centuries, Port Botany has developed as a major landing point for majority of the commodities consumed by industries and businesses in New South Wales. Its geographical location in the northern shore of Botany Bay surrounded by several suburbs such as Matraville, Philip Bay and Banksmeadow enhances its functions. The port name is derived from the bay where it sits on, with its coordinates being 33°58′34″S 151°13′05″E (Sydney Ports Corporation Board 2010). Two major tributaries flow into the expansive Botany Bay. Apart from the Cooks Rivers and the large Georges Rivers, the bay is also connected with an extension comprising two runaways that extend from the Sydney airport. Located about 12 kilometres from the core of Sydney makes it strategic for the City Of Randwick residents and government. Its infrastructural interconnection with the central business district has boosted trade (Sydney Ports Corporation Board 2010). Botany Bay is also strategically located in the Tasman Sea. The sea provides adequate depth for several important port operations (Pollen & Angus 2000). In fact the port has a depth that ranges from 14metres to 15.2 metres making it easy for large to dock at the port. More importantly, the cargo pier depth ranges from 9.4m to 10m while the oil terminal depth falls between 14m to 15 m. The large depth of the oil terminal has enhanced the capabilities of the port to handle enormous cargo thus ensuring ample supply of petroleum products to Sydney and its environs (Pollen & Angus 2000). Port botany enjoys one of the best coastal natural harbours that have a maximum size of slightly above 500 feet. One of the major landmarks is the Molineaux point which consists of unique features to Kumell and La Perouse thereby acting as a commemoration of the amicable relationship shared by port authority of Yokichai and the Sydney ports corporation (Sydney Ports Corporation Board 2010).

Services and operations

Port Botany has become a core entry point for Australian imports and exports in the last few decades with significant increases in the waterside services expected in the next 20 years. With an estimated increase of 7% in cargo freight in the port, the landside services are expected top soar up in the next few years. Concerted efforts by the administration and the private sector will see the port acquire an upgraded network of road and rail transport from the port thereby improving the efficiency of the landside services. Container loading and unloading has become capital intensive owing to the improvements in the navigational technology. Terminal operations are instrumental in international trade owing to the increasingly trend of large vessels. The several wharfs in the port provide ample space for terminals that enhance the movement of containers and oil. Grain-bulk handling and offloading of oil containers also forms a significant proportion of the waterside services in the port. Agricultural exports and imports are rapidly sent to other countries while large quantities of oil containers find their way into the country through the massive oil terminal. Oil terminal constitutes more than half of the daily port operations. The large depth of the oil terminal enhances the handling of huge ships and tankers. With a well established transportation system, the port is able to satisfy the demand of oil by the refiners and marketers. In fact, plans are underway to construct a second berth with the capabilities of handling bulk liquids thus ensuring the state energy supplies are safeguarded in the long term. Ample space of the shipping berths, tug berths, container terminals and largely the shipping channels has improved efficiency in the port (Sydney Ports Corporation Board 2010). Other services include harbour control and pilotage in tandem with international standards.

Landline services are expected to improve in the next few years after the completion of the expansion within the port. Billed as the largest expansion project in the whole of Australia in the last three decades, the project is expected to revolutionalise the handling of cargo in and out of the terminals. With an increased expansion and connectivity of the port with the city, rail transport is expected to play a more crucial role in the transportation of cargo thus reducing the road burden (Australian Government 2007). Landline services include freight services of containers into the Sydney and its suburbs. The fact that the port handles bulk liquids and containers make it essential to put in place efficient transport channels and means in and out of the port. Clearing and forwarding of goods and services are offered by several private companies. Freight services are mainly achieved through roads and rail with trucks acting as the linkage vessels between the port terminals with the intermodal terminal ands the warehouses. Optimisation of road operations combined with expansion of road corridors has greatly boosted the delivery of services to the city (Lambert, Stock & Ellram 2000; Stock & Lambert 2000).

Trade in the port is mainly centred on bulk fluids and containers with a sustained annual increase in trade operations in the next few decades. Port Botany is believed to account for slightly above 70% of the total container trade and other forms of trade in Australia. The expansion project is expected to boost its capacity in handling the more than 1.784 M units of total container trade (TEU, s). A total of 1,668 chargeable vessels docked in port botany in the last financial year with an estimated total trade of 26m mass tonnes. About 7 quay cranes are under utilisation with larger versions expected to cater for huge vessels. The port has computerised control systems supported by extensive reefer facilities that enhance electronic business and customs. A fleet of more than 36 straddle carriers and several reach stackers in the loading bays that ensure tankers and trucks are loaded at the shortest time possible (Shang & Lu 2009). Crane engines and mobile hoppers play a useful role in cargo handling. Transport between the port and the external suburbs are through an extensive network of rail and roads with the existence of intermodal terminal whereby the containers are loaded to the trains for transportation to the warehouses. The landside operations are continually being upgraded to reduce road queuing while enhancing the overall logistics within the port (Lambert, Stock & Ellram 2000).

Operations carried out in the port range from cargo handling, transportation, clearance and provision off security. Cargo handling is mainly handled by the Sydney ports corporation, which is the administrative unit of Port Botany. Cargo handling agents play a crucial role in ensuring speedy turnover of cargo in and out of the port in the various terminals (Li, et al 2004). In addition, clearing and forwarding agents ensure all the documentation including customs clearance are met before involving the various shipping agents in marine and land transport of containers (Li 1993). Terminal operators and largely stevedoring firms play crucial roles in the overall cargo handling business (Maton 1997). Dock labour system in Australia reflects the international trends with waterside workers being a common name used to refer to the Dockers. Moiré importantly, the wharfies require extensive knowledge in the operation and handling of cargo equipments. Recently, the maritime union of Australia managed to secure coverage for all dock workers. Employment in ports has converted to permanent to ensure uninterrupted flow of services, taking into account the high dependency of the economy on sea ports (Shang & Tseng 2010).

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Administrative and management

Corporate governance is instrumental in the success of institutions in provision of high quality services and for efficiency purposes (Alderton 2005). In fact, it is pivotal in the creation of a level playing ground for the recognition and reward of the stakeholders’ interests. Port botany is the largest port in Sydney and is managed by the Sydney Ports Corporation, which is mandated by the government to oversee the business and all commercial affairs in the ports. The corporation is run by the Board of Sydney Ports. Port Botany utilises a landlord port model that entails a partnership between the government and various players in the public sector. The Board of Sydney ports acts as the regulatory authority thereby providing guidelines on the overall running of operations in the port. In addition, the board approves all strategies and the financial objectives while monitoring the financial indicators against the set objectives and targets. On the other hand, terminal operations and cargo handling are carried out by the private companies (Australian Government 2007). In addition, substantial population of dock labour are employed by the private port operators. With regard to the landlord model, the Board provides the major infrastructure in the ports while customised works in the terminals and bays are left to the private operators. The private operators pay leases to the government depending on initial capital expenditure and freight volumes. This model is advantageous since it gives the port authority ample capacity to concentrate on its core business of regulation (Candoy-Sekse 1988). The private operators benefit largely since they are able to install equipment that fit their nature of work (Steenken & Stahlbock 2005). However, the models may lead to conflict between the authority and private operators especially with regard to the design of the superstructures and infrastructural developments (Alderton 2005).

Challenges

Despite recording positive results and growth, Port Botany is faced with several challenges that may inhibit its speedy development into one of the most efficient ports in the world. Congestion and decreased productivity of the port in the face of increased throughput are the major impediments staring at the port (Lane, McDonald & Morrison 2004). The lack of ample space to expand the port will restrict the trade volumes in the future. Increased pressure on the terminals, roads and intermodal terminals has curtailed the growth of container volumes (World Bank 2003). In addition, conflict and acrimony among the dock labour is a major challenge that may curtail the delivery of services.

Conclusion

Concerted efforts from the authority and other stakeholders have resulted in the commissioning of a major expansion of the infrastructural linkages in the port, hence easing the pressure on the terminals and the roads. Decongesting will ensure timely delivery of services thereby safeguarding the economy of New South Wales. More importantly, the strategic location of the port and the undying commitment from the state government and other stakeholders will enhance the development of the port as a major entry point for key commodities vital for the businesses and industries.

Reference List

Alderton, P. 2005, Port management and operations: Lloyd’s practical shipping guides, Lloyd List Publishers, London.

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Australian Government 2007, Productivity Commission recommendations and Commonwealth Government response to Productivity Commission Inquiry Report No. 39 ‘Tasmanian Freight Subsidy Arrangements’.

Candoy-Sekse, R. 1988, Techniques of Privatization of State-Owned Enterprises, IBRD Technical Paper 90.

Maton, J. M. 1997, Public Port Administration and Private Sector Intervention in Ports and the Port Industry, World Bank, New York.

Lambert, D.K., Stock, J.P. & Ellram, S. M. 2000, Fundamentals of Logistics, 4th edition, Mc Graw-Hill/Irwin, New York.

Lane, G., McDonald, T. & Morrison, H. 2004, “Decentralization and Environmental Management in Australia: a Comment on the Prescriptions of the Wentworth Group Issue”, Australian Geographical Studies, vol. 42, no. 1, pp. 103–115.

Li, H. C. 1993, “Port operation needs management strategies,” Kaohsiung Harbor, vol. 7, no. 6, pp. 2-11.

Li, J.-A., Liu, K., Leung, S.C.H. & Lai, K.K. 2004, Empty container management in a port with long-run average criterion, Mathematical and Computer Modeling, vol. 40, no. (1-2), pp. 85-100.

Pollen, F. & Angus, D. 2000, The Book of Sydney Suburbs, Robertson Publishers, Sydney.

Shang, K. C. & Lu, C. S., 2009, “The effects of safety climate on perceptions of safety performance in container terminal operations,” Transport Reviews, vol. 29, no. 1, pp. 1-19.

Shang, K.C. & Tseng, W.J. 2010, A Risk Analysis of Stevedoring Operations in Seaport Container Terminals, Journal of Marine Science and Technology, vol. 18, no. 2, pp. 78-98.

Steenken, D., VoB, S. & Stahlbock, R. 2005, “Container terminal operation and operations research – a classification and literature review”, Container Terminals and Automated Transport Systems, vol. 26, no. 1, pp. 3-49.

Stock, J., Lambert, D. 2000, Strategic Logistics Management, 4th edition, Mc Graw-Hill/Irwin, New York.

Sydney Ports Corporation Board 2010, Sydney Ports Corporation Board, Sydney.

World Bank 1995, “Bureaucrats in Business: The Economics and Politics of Government Ownership”, Journal of Maritime Freight, vol. 13, no. 4, pp. 33-38.

World Bank 2003, Port Reform Toolkit: Effective Decision Support for Policymakers, World Bank Publications, New York.

World Bank 2005, World Bank Port Reform Tool Kit Alternative Port Management Structures and Ownership Models, World Bank Publications, New York.

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DemoEssays. "Port Botany: Functions, Ownership and Management." February 25, 2022. https://demoessays.com/port-botany-functions-ownership-and-management/.