Geelong Port-City Coordinator
Victorian Regional Channels Authority
Level 2, 235 Ryrie St
GPO Box 1135
Geelong Victoria 3220
Infrastructure Victoria – Laying the Foundations submission
Port of Geelong
The port of Geelong is Victoria’s largest specialised bulk goods port, trading in both dry and wet
cargo.
It is a vital component of Victoria’s transport infrastructure and plays a key role in the economic
health of not just the city and surrounding region, but the state as a whole.
Geelong’s port is a major gateway to the world for the state’s diverse businesses and supports many
jobs directly and indirectly. With the bulk of the nation’s imports and exports carried by ships, ports
such as Geelong are a crucial part of our lives and must remain productive for our country to
prosper.
The Victorian Regional Channels Authority (VRCA), which manages and operates the Port of Geelong
waters, works closely with port stakeholders and users to best position the shipping hub to capitalise
on future trade opportunities that arise over the next few decades.
A trend in the global fleet to bigger ships to achieve economies of scale poses significant challenges
for Geelong’s port, driving the need for infrastructure investment in the shipping channels and
landside logistics. All stakeholders must play a part in ensuring infrastructure improvements keep
the port safe, efficient, productive and competitive for the future.
The majority of the port’s commercial assets are owned by Ports Pty Ltd, which is 50 per cent owned
by Deutsche Bank’s RREEF fund and Asciano. Patrick, owned by Asciano, manages the assets while
GrainCorp owns and operates the Bulk Grain Pier. Viva Energy Australia and Incitec-Pivot Fertilisers,
both key port users, own parcels of land adjacent to the port.
Port of Geelong – trade and port users
The port of Geelong is Victoria’s largest import-export gateway for bulk cargoes including crude oil,
petroleum products, grain, woodchips and fertiliser. Last financial year the port handled more than
13 million tonnes of cargo, worth $8.4 billion.
A recent VRCA-commissioned economic impact study forecasts that jobs and trade will grow by 50
per cent in the next two decades. Getting infrastructure right – both on land and water – will play an
important part in maximising that growth and lifting port productivity.
Key drivers of infrastructure needs at Geelong’s port include:
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The Geelong Refinery, owned by Viva Energy Australia, produces over half of the state’s
petrol and other fuel needs. Pipelines connect the refinery with Viva Energy’s terminal and
other customer terminals at Newport, from where the majority of fuels are distributed.
Product is also distributed directly by sea and by road to regional areas in western Victoria.
The refinery, an important provider of jobs, also produces specialty products including avgas
for piston-engine aircraft, bitumen, solvents supporting Australian mining, paint and
adhesive industries and feedstock for plastic manufacturing. Since the purchase of the
refinery by Viva Energy in 2014, over $300m of investment in the refinery across 5 years has
been announced.
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Terminals Pty Ltd operates a bulk liquid storage facility adjacent to Geelong Refinery, using
the Refinery Piers for the movement of product from vessels to shore.
Geelong’s port provides a vital hub for the movement of bulk goods from Victoria’s
agricultural industry. Bulk fertilisers imported or manufactured in the port precinct are
distributed by road across the state and southern New South Wales for use in horticulture,
pasture and cereal crops.
Grain is transported to GrainCorp’s terminal at the port via rail and road for export via bulk
vessels or packed into containers for export through the port of Melbourne. Two malting
operations adjacent to the GrainCorp terminal see sizeable volumes of barley being
transported to and from the port precinct.
Woodchip exporters use the port, with the loading of woodchips onto vessels possible at
two separate berths. Woodchips are directed to the port from across the state due to its
central location.
A number of port users take advantage of Geelong’s proximity to Melbourne to trade
through the port with the majority of goods destined for metropolitan Melbourne. Key
commodities focus around break bulk, for goods such as steel and timber imports for
construction and manufacturing.
The port generates a diverse range of workforce skills across many varied businesses and
organisations. While these workforce skills require adequate educational and training
infrastructure to support staff development, they can also collaborate to provide research
and development opportunities. ICT infrastructure and services also provide opportunities
for productivity improvements with port users and for growth of the large service industry
supporting the port.
Geelong Port-City 2050 concept
In 2013, the Committee for Geelong, City of Greater Geelong and key port stakeholders
commissioned the Geelong Port-City 2050 report. The report aims to kick-start Geelong’s evolution
to a Port-City. The VRCA is the Port-City coordinator, with duties including facilitating overall
planning and prioritisation of infrastructure projects that target port and city development.
The OECD Global Port-Cities Project explored the concept of a port-city in depth. Ports have been
the origin of many cities, driving their economic development and forging strong links between the
city and port. Over time as cities grow and their economies diversify, those links can diminish. The
City-Port Project considers how ports can be key drivers of urban economic development and how
they interact with the urban environment.
There are strong parallels between the Port-City concept and Laying the Foundations’ principles and
objectives. These centre on how the port, as a significant hub of infrastructure, can drive supply
chain competitiveness and deliver economic development locally and regionally while mitigating
negative impacts and providing opportunities to boost amenity.
The Geelong Port-City 2050 report identified opportunities to progress the port-city concept,
including:
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Providing pathways for road freight to the port that allow for freight growth and productivity
while creating improved community outcomes.
Developing a value-added service sector that can build on the Port-City, including links with
educational institutions.
Incorporating environmental and amenity planning Port-City plans.
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Transport links with the broader Victorian economy
Many of the economic benefits from a port don’t always happen in the immediate vicinity of the
shipping hub in question. They can occur in regions remote to the port, such as the Wimmera’s
wheat belt.
Ports are a key link in the overall logistics chain for import and export trade. Any weak links between
the port and other components of that supply chain can have a negative impact on the port’s
competitiveness. This, in turn, can spread ripples right down the line, right across the state.
Case Study – Rail and grain
GrainCorp’s Geelong terminal is a significant hub for the movement of grain in Victoria, handling
almost two million tonnes in bumper years. The terminal is serviced by road and standard and broad
gauge rail. Grain received at the terminal can be exported through the port in bulk, supplied to
surrounding malting facilities or packed in containers for export through Melbourne’s port.
Rail infrastructure projects that have been completed, are in progress or in planning all improve the
productivity of the supply chain using the port.
Recent upgrades to the load capacity of the Geelong Grain Loop and signal automation in Geelong
and regionally have also boosted the supply chain’s efficiency. GrainCorp, Australian Rail Track
Corporation (ARTC) and the Victorian Government funded the projects. Signal automation reduced
train turnaround times by 12 per cent, due to the loop’s ability to operate around the clock while rail
loop improvements increased axle loads and enabled more grain to be carried per train. Both projects
improved the port and freight system’s efficiency, improving access for regional producers to market
and export their grain.
GrainCorp is implementing Project Regeneration, which aims to boost rail loading rates, unlock rail
freight savings and increase the proportion of grain transported by rail.
Infrastructure objectives and needs
Infrastructure Victoria’s Laying the Foundations infrastructure strategy recognises that workforce
participation, population and productivity growth are key drivers of economic growth. Without
growth, living standards can stagnate. Lifting Victoria’s productivity – Objective Five– is a core driver
of port planning, with the port’s health vital to the city, region and state’s economic wellbeing.
The VRCA, port authorities and users want to keep Geelong’s port productive now and for years to
come. And that takes planning – to ensure the necessary infrastructure is in place to meet challenges
including larger ships and greater ship numbers so the port can seize future growth opportunities
and help build a stronger Victoria.
It’s about collaboration, planning, embracing new technology and an on-going drive to improve the
port. And it all leads to a more productive Victoria.
Productive approaches include 
The VRCA has developed a sophisticated capacity simulation model as a valuable planning
tool to help the port prepare for future changes including trade growth, ships with deeper
draughts and increased and changing traffic on port-generated road and rail networks. The
simulation model plays an important role in developing the VRCA-co-ordinated Port
Development Strategy.
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Non-build infrastructure solutions, which centre on managing demand through more
efficient use of existing infrastructure, can be a cost-effective way to improve productivity.
They can also provide an interim step to boost growth that leads to major infrastructure
projects.
The VRCA implemented a Dynamic Under Keel Clearance system early this year, an example
of a non-build productivity solution that improves vessel capacity and safe navigation. The
software technology can support trade growth in Geelong’s port, and is complementary to
potential future physical infrastructure upgrades.
The VRCA has developed a 24-stage channel improvement program to meet future needs,
completing stage one works at a cost of $8.1 million late last year. Improvements to the
access channel into the Port of Geelong are seen as critical to both secure existing trade
through the port, but also to exploit future opportunities.
Efficient road freight is an important factor in keeping Geelong’s port productive. Port
stakeholders are working to upgrade road freight productivity by identifying works to allow
increased access for High Productivity Freight Vehicles. While the port will enjoy increased
productivity, shifting more freight to specific routes within the road network will also benefit
residential areas and boost road safety.
Increasing the productivity and opportunities for rail freight into the port of Geelong. The
Murray Basin Rail Project can boost the productivity of the existing rail connections to the
port. There is also the opportunity for substantial increases in the area of the port accessible
by rail by an additional 1km of rail connecting Lascelles Wharf with the main GeelongMelbourne line.
Provision of suitable land for future port activities is a key element in the continued growth
of the port of Geelong. Ford will be ceasing manufacturing in October 2016, its landholdings
are close to the port and could be utilised for future development for port related trade.
Due to increased demand for berthing and storage, planning for the development of a new
bulk handling berth at Lascelles Wharf and associated shedding continues.
Promoting responsible funding and financing is a key in the push to improve infrastructure.
Geelong’s port has a mix of private and public ownership of infrastructure. Significant
developments can require support from private and public entities. It is vital that
Infrastructure Victoria carefully consider ways to support co-investment from public and
private sources to meet future infrastructure funding needs.
When it comes to infrastructure projects, co-ordinating the timing and investment of
infrastructure between government organisations and levels of government can be a
challenge. Different decision-making processes and criteria can complicate infrastructure
development co-ordination.
Geelong’s port is a cornerstone of the city’s economy. It’s helped shape the city’s past and will
continue to play an important part in its future.
But for that future to be bright, we have to ensure the port’s foundations remain strong. And that
requires a strong commitment to ongoing infrastructure improvements within the port and within
the supply chains that lead to the shipping hub.
Lifting Victoria’s productivity is vital if we want to drive our state forward. Laying the Foundations –
an infrastructure strategy for the next three decades – has kick-started the process and Geelong’s
port and it stakeholders are keen to be part of the conversation.
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