Port of Hastings CEO and Members of Parliament joined by business leaders to discuss opportunities that the development of this key piece of infrastructure will bring for the South East Region. Hosted by Committee for Dandenong and sponsored by Pitcher Partners
2. Infrastructure for the future
It is well recognised and accepted that Victoria
needs to invest heavily in some major infrastructure
projects, evidenced by the commitment of the
State Government in its recent budget, and the
Federal Government’s committed funds for
Victorian projects.
Growth predictions, particularly in container movements, is a key driver of
the need for Australia to be more competitive in the global marketplace.
Paramount to this will be boosting Australia’s exports and increasing
productivity of our international gateways, and making sure they can meet the
rapidly growing freight task without adverse impacts on community amenity.
As Melbourne is Australia’s largest container port, planning for long term
growth in container trades is critically important to our productivity – at the
national, state and local level.
The Port of Hastings (PoH) is pivotal to Plan Melbourne, the State Government’s
strategy for Melbourne into the future. To transform a city, governments need
to establish a pipeline of large-scale infrastructure projects that link to a city
plan – and that is what the PoH is a part of.
Pitcher Partners wants to ensure our clients are in the best possible position to
capitalise on the opportunities created through the transformational change
that these infrastructure projects represent – particularly through the PoH
development in Melbourne’s burgeoning South East Region, often cited
as the engine room of Victoria.
Melbourne’s South East Region is already home to over 1.4m people and
represents 21% of Victoria’s workforce. At the very least, people commuting
via the Monash Freeway, or living within its catchment area, will have a greatly
improved quality of living.
of Gross Regional Product representing 19% of
Victoria’s Gross State Product and making
Melbourne’s South East a key economic region.$63bn
priority infrastructure pipeline projects nominated
for further detailed design and advancement by
Infrastructure Australia including the PoH.28
of businesses are frustrated with
Australia’s infrastructure.
Australian Industry Group figures.70%
2
3. MelbaHwy
HumeFwy
South Gippsland Hwy
CalderFw
y
Western Fwy
Princes Fwy
Avalon
Airport
Melbourne
Airport
Port of Hastings
Port of
Melbourne
Port of Geelong
Princes Fwy
SERL – Additional rail
track Dandenong to Dynon
NE link road
E6 link road
BIFT – 2M TEU capacity
and potential MIS Terminal
HPFV access to majority
of freeway network
Melbourne Airport
OMR link road
Melbourne Airport
with fourth runway
OMR Interstate
Rail Bypass
Avalon with
second runway
WIFT – 2M TEU capacity
and MIS Terminal
replacing Altona
OMR link road
EW link road
MIS Terminal
Healesville-Koo Wee Rup Road
Upgrade to Freeway
Port of Hastings
around 9M TEU capacity
Full freeway
link to port
Dynon Rail Terminals relocated
Port of Melbourne up to 5M TEU capacity
MIS Terminal
Rail link to port
PAKENHAM
BELGRAVE
DANDENONG
DROUIN
MELBOURNE
MELTON
HURSTBRIDGE
SUNBURY
DEER PARK LILYDALE
WERRIBEE
QUEENSCLIFF
GEELONG
HASTINGS
FRANKSTON
N
Port Phillip Bay
Abbreviations:
Source: www.transport.vic.gov.au
BIFT – Beveridge Interstate Freight Terminal, OMR – Outer Metropolitan Ring, SERL – South East Rail Link, WIFT – Western Interstate Freight Terminal
Principal Freight Network (PFN)
Rail
Road
Bulk/General cargo port
Container port
Interstate rail terminal
Metropolitan Intermodal System (MIS) Terminal
Freight airport
Major Freight Network Developments
Airport initiatives
Intermodal terminal initiatives
Port initiatives
Major new rail link
New road link
LEGEND
Non PFN features
Urban area
Long-term Metropolitan Freight Network Vision.
Having access to an efficient freight network is absolutely vital for
businesses and jobs relying on exporting and importing their products.
3
4. Despite the current $1.6 billion expansion project
for the PoM, by 2030, it is due to reach capacity,
with Victoria needing to handle around 6,000,000
Twenty-Foot Equivalent Units (TEUs), more than double
current volumes, and by 2035 it will need to handle
8,000,000 (almost quadruple current volumes).
A competitive and sustainable commercial PoH is critical to preserving the South
East Region’s export and manufacturing industries and supporting the liveability and
economic growth of Victoria, and ultimately Australia. It will provide a major boost
to the region’s social and economic wellbeing while also ensuring the state’s rightful
position as Australia’s leading container hub.
Current limitations of the Port of Melbourne (PoM) has
driven the government to seek alternative port options
for two critical reasons:
The development of the PoH will complement growth at the
PoM and provide an alternative container port which will
generate more competition and economic flow on benefits
for all of Victoria and Australia.
Melbourne’s South East Region drives the state’s container traffic:
• 33% of full import containers end up in the South East
Region not taking into account products unpacked in
Melbourne’s west and moved across to the South East Region
• Dandenong is the number one destination for
containers going to or from the PoM, amounting
to around 132,000 TEUs.
• By 2034, the South East Region is forecast to take more
than 1.5 million TEUs; by 2051 this is expected to increase
to 2.5 million TEUs (equivalent to all trade currently
passing through the PoM)
Connected roads, rail and airways
To future proof the local, state and national economies, it is
incumbent upon government to deliver the essential transport
infrastructure that supports the impending increased demand
on the container, freight and logistics sector.
Qube Logistics noted that 500,000 TEUs
moved by rail would take 860,000 truck
movements off the roads
Currently, daily truck movements are close to 300,000 truck
trips per day and by 2046 this is expected to more than
double. There is a long term strategy to improve freight
efficiency, grow productivity and better connect Victorian
businesses with markets – local, national and international.
Greater Dandenong currently has the highest internal freight
movement activity of all metropolitan Local Government
Areas (LGAs). It is the largest generator of freight movement
overall, with over 1,800 individual truck trips in the morning
peak alone. The volume of freight in the South East Region
is predicted to further increase as more industrial land is
opened up in Greater Dandenong, Frankston, Casey and
Cardinia, with more activity centred around logistics and
warehousing, and more investment is attracted to the PoH.
The PoH will be supported by integrated links with other
government commitments and agendas, critical to the
success of ensuring the PoH operates at maximum efficiency
and the business benefits are optimised.
This includes the Freight & Logistics Plan to ensure the
capacity of Ports and Airports can handle the growing
volume of goods and growing numbers of passengers.
Rationale
Increasing size of container ships. By 2036 the
mean capacity of all international container
vessels visiting Victoria is expected to be greater
than 8,000 TEUs and by 2045, greater than 10,000 TEUs, on
ships carrying between 8,000 and 18,000 containers each.
4
5. Road and rail upgrade and other complementary infrastructure projects
for improved efficiency and connectivity.
Impact beyond containers
The economic effects of the PoH extend well beyond the
ability to move containers. Planned capital expenditure on
Hastings alone is expected to provide the region with an
average of $60 million per annum, in Gross Regional Product
(GRP), over a 30 year period and an average 400 jobs per
annum over the same period.
The direct, and flow on benefits are likely to range from
$1 billion in GRP and 5,700 jobs in the mid 2020s/30s rising
to $3 billion in GRP and 15,200 jobs in the early 2050s.
For Victoria, the economic benefits for job creation are
expected to be in the vicinity of 6000+ in the initial early
stages of development.
Road Rail Other
Freeway upgrades:
– Monash
– Hume
– Western Port
– Princes
– Mornington Peninsula
– EastLink and
– South Gippsland
Increased train capacity and upgrades
to existing rail system including a
rail link between Dandenong and
the PoH and new rail loading facilities
at Hastings
Intermodal terminal
Grade separations Dedicated dual standard gauge line rail
connection (reservation set aside for
the Western Port Highway)
Third airport for Melbourne in the
South East – potential target site is
KooWeeRup
6-lane Western Port Freeway South East Rail Link with a dedicated
rail freight link between Dandenong
and Dynon
Largest supply of pre-zoned industrial
land with land use buffers where
required
Facilitation of Metro train tunnel
allowing for better passenger trains on
Dandenong line, freeing up space for
freight trains
Regional Rail Link which includes
the East/West link and Cranbourne-
Pakenham rail corridor
Land surrounding the PoH has been
reserved for port related activities
since the late 1960s
The release of the Victorian
Freight & Logistics Plan, which
seeks to provide an alternative cross-city
freight route, is another example of what
needs to be done to counteract the cost
of congestion and lost productivity.
Colliers International // Research & Forecast Report // Industrial
Two primary destinations for inbound freight: Two primary sources of outbound freight:
Manufacturing Manufacturing
Wholesale and ultimately retail trade Agriculture
South East Region accounts for 44% of Victorian Manufacturing
5
6. Growth in abundance
Across the South East Region, population growth over the
past five years has averaged 1.7% per annum, while the
number of households has increased by 1.6% per annum
outgrowing both Victoria and national averages. Cranbourne
East tops the South East Region’s fastest growing areas and
Victoria was named the second-hottest housing region for
the nation in a recent Housing Industry Association report.
South East Region industries
The PoH is considered critically important to the economic
development of the South East Region and will be a major
enabler for future investment. The economic development
plans of all the LGAs in the South East Region have identified
the PoH as a key economic driver in terms of the productivity
increases it will bring to manufacturing, trade, technology
and employment.
The key South East Region industries include:
Many of these industries rely heavily on export and
import trade and the PoH supports the expansion of these
industries across the South East Region including Gippsland
and local logistics services, critical to Gippsland’s economic
resilience. However, Manufacturing and Agriculture
represent the greatest opportunities and impact for the PoH.
Manufacturing
Manufacturing alone employs 101,000 full time equivalents
(FTEs) and is the largest single economic activity for the
South East Region, operating significant port related activity.
It accounts for 14% of the region’s GRP.
The industry in the South East Region:
• Produces 44% of Victoria’s total manufactured product
• Contributes 13% of the region’s value added
• Provides the largest number of jobs in the region
• Exports just under $16 billion worth of products
Food manufacturing is the largest component of the
manufacturing industry in the South East Region.
Agriculture
The region’s diverse agriculture contributed 1.4% of the
region’s gross value added (GVA), 1.4% of employment and
1.4% of exports. However, the figures belie the importance of
agriculture in the outer regions where direct GRP accounted
for by agriculture in Cardinia, Casey and the Mornington
Peninsula was 11.4%, 4.1% and 4.5% respectively.
The importance of agriculture has grown in the region’s
peri urban areas. Between 2011 and 2013 it was the
second fastest growing industry sector in the Southern
Melbourne RDA.
Victoria, the largest food and fibre exporting state, earns
around $9 billion each year, with the South East Region
being a major contributor to its success.
In recent years, the sector has performed strongly, with
GVA increasing by 4.8% per annum between 2006 and 2011
and 3.2% per annum between 2011 and 2013. In the later
period, it was the second fastest growing industry sector in
the southern Melbourne RDA.
The dramatically reduced
compound freight and delivery
times have boosted business efficiency
and profits right along the corridor
bordering these roadways. Proposed
upgrades to sections of the Western
Port Highway and the development of
Port of Hastings will further enhance
the attractiveness of the area to
business investment.
Opteon // Australia’s Property Advisors
Manufacturing
Agriculture
Wholesale trade
Retail trade
Property and construction
6
7. Business uptake has been quick
Businesses are already jockeying for prime position to
capitalise on the many tangible benefits to be derived from
the PoH. Of the 255,783 square metres of industrial space
leased in Melbourne in the year to March 2014, the south
east accounted for 57% of transactions.
Salta Properties has developed land close to the inland port,
comprising 180 hectares, called Portlink, in Dandenong
South. This new development sees in excess of 600,000
square metres of warehouse space alongside a major rail
and road transport hub.
Qube has been secured as an anchor tenant, along with
Bunnings who has taken a long term lease of over 43,000
square metres of space for its new distribution centre.
Other recent deals include:
Over 2013, sales activity in the region is also on the rise, with 26 sales totalling $361.2 million worth
of industrial property (+$5 million exchanged in the six months to September 2013, compared to
11 sales totalling $231 million over the previous six months).
Each job in manufacturing
generates on average between
two and five jobs in the rest of
the economy.
Goran Roos // Global manufacturing expert
Reece Australia
Second major South East
Region site.
Former L’Oreal distribution facility.
Deal valued at $2m per annum
L’Oreal
Prelease of new facility of around
30,000 square metres.
Ego Pharmaceuticals
Purchased 9.5 hectares to build
a $100 million manufacturing
facility representing the biggest
development by a manufacturer
seen in the market for some years.
7
8. Financial essentials
• Accounting and business
advisory services
• Audit, risk management and
assurance
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• Tax advice and compliance
Planning and growth
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and commercial advice
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• Corporate governance
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Our private wealth services
• Estate planning
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• Philanthropy services
• Succession planning
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Industry specialisations
• Manufacturing
• Property and construction
• Agriculture
• Transport & Logistics
• Wholesale Trade
• Retail
• Food and beverage
• Government and the public sector
• Professional services
• Health and aged care
• Not for profit
Pitcher Partners refers to the Victorian
partnership and its associated entities
including Pitcher Partners Advisors Pty Ltd,
Pitcher Partners Consulting Pty Ltd, Pitcher
Partners Corporate Pty Ltd, Pitcher Partners
Transaction Services and Pitcher Partners
Investment Services Pty Ltd.
Pitcher Partners is a full service accounting and business advisory firm with a
strong reputation for providing quality advice to privately-owned, corporate and
public organisations.
In Australia, Pitcher Partners has firms in Adelaide, Brisbane, Melbourne, Perth, Sydney and Newcastle. We collaboratively
leverage from each other’s networks and draw on the skills and expertise of 1000+ staff, in order to service our clients.
Pitcher Partners Melbourne is the leader in the middle-tier market and is the fifth largest accounting services firm in
Melbourne after the Big 4 multinational firms.
Pitcher Partners is also an independent member of Baker Tilly International (BTI), the eighth largest network in the world
by fee income. Our strong relationship with other BTI member firms, particularly in Asia Pacific, has allowed us to open
many doors across borders for our clients.
$3.4bnWorldwide revenue 2013 (USD)
137Countries
27,000+Partners and staff globally
89Partners nationwide
1,000+People nationally
About Pitcher Partners
Our commercial services to dynamic businesses
Pitcher Partners is a national association of independent firms.
Liability limited by a scheme approved under Professional Standards Legislation.
We are also the only major firm to have an office in Melbourne’s South East Region.
8
9. Pitcher Partners has the resources and depth of expertise of a major
firm, but with a smaller firm feel. We give our clients the highest
level of personal service and attention. That’s the difference.
Firm
locations
PERTH
NEWCASTLE
SYDNEY
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ADELAIDE
+61 3 8610 5000
partners@pitcher.com.au
+61 8 8179 2800
partners@pitcher-sa.com.au
+61 2 9221 2099
partners@pitcher-nsw.com.au
+61 7 3222 8444
partners@pitcherpartners.com.au
+61 8 9322 2022
partners@pitcher-wa.com.au
+61 2 4911 2000
newcastle@pitcher.com.au
9
10. Our global reach
International Gateway
Melbourne’s South East Region has the potential
to be Australia’s economic gateway to Asia
and the World
10
11. Key
Pitcher Partners
Partners: 89 Total Staff: 1000+
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Business Advisory Superannuation
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Transaction Services Risk Services
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and Insolvency
Business Consulting
Private Clients Corporate Finance
Pitcher Partners South East
Full service office
Opened August 2013
80 Monash Drive
Dandenong South VIC
11
12. Get in
Touch...
Perth
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+61 3 8610 5000
partners@pitcher.com.au
+61 8 8179 2800
partners@pitcher-sa.com.au
+61 2 9221 2099
partners@pitcher-nsw.com.au
+61 7 3222 8444
partners@pitcherpartners.com.au
+61 8 9322 2022
partners@pitcher-wa.com.au
+61 2 4911 2000
newcastle@pitcher.com.au
+61 3 8610 5146
david.knowles@pitcher.com.au
David Knowles Pitcher Partners
South East Region Partner
David has been instrumental in realising
our south east strategy to better service
our clients in this burgeoning region.
He brings this high level strategic
thinking to the benefit of his clients
which include large private and ASX
listed public companies. He assists clients
get ‘investor-ready’, pursuing growth
opportunities that realise optimal value
for the business and its owners.
South East Office
Managing Partner John Brazzale and
South East Partner David Knowles at
Pitcher Partners’ south east office.