INDUSTRY OPINION: Australia’s future lies in its port economy

AS AN island continent, 99% of our trade arrives and departs by sea. Our connection to maritime is so intertwined into our daily existence that most of us don’t consciously think about it; it’s the invisible thread supporting a strong economy.

Quietly contributing to the billions of dollars the NSW economy generates and providing the day-to-day essentials many take for granted, the city’s ports at Sydney Harbour and Port Botany provide a vital nexus for commercial shipping, bridging maritime and urban landscapes.

An increasing urban population heightens the demand for infrastructure, and goods which are best delivered by port to the heart of a city. In Sydney the commodities needed to build the city arrive through the port and are delivered right to where they are needed most.

In addressing the projected NSW housing targets of 377,000 new homes delivered over the next five years, the state government is pursuing a housing policy of increased urban density to tackle issues of housing supply, against a backdrop of low density by international comparison. The advantage of port operations in a centralised location is highly complementary – it’s the construction material mouth feeding our growing city.

The ports at a glance

Over the last decade, more than eight million tonnes of essential construction materials were imported through Glebe Island. This includes an annual 405,000 tonnes of gypsum used to create all plasterboard – a material essential to the construction industry – in metropolitan Sydney. Since 2014, we’ve also seen four million tonnes of cement arrive; the equivalent needed to build 300,000 homes. This supply is at least 80% of the cement used within a 25-kilometre radius of Glebe Island, vital at a time of housing shortages and heightened infrastructure demand in Sydney.

On an economic level, the collective impact of all commercial ports in the state has been substantial, securing $1 trillion worth of the state’s trade and bringing in essential items for every NSW business and home. For the last decade, Port Kembla has brought in 2.4 million motor vehicles – 100% of NSW’s imports. Newcastle has facilitated 1.6 billion tonnes of cargo, from barley to aluminium. And together, Newcastle and Port Kembla have seen the delivery of 32 million tonnes of wheat out to market, supporting global food supply chains.

The economic injection of our ports stretches to tourism and retail as well as support to businesses right along the supply chain. The state’s working ports support the cruise industry, welcoming over one million passengers annually, injecting $2.7 billion a year into the NSW economy with a flow of tourists supporting local businesses in Newcastle, Eden and Sydney.

Global examples

If we look internationally, global cities like Barcelona and New York have capitalised on centrally located ports to deliver a strong supply chain to support the infrastructure that large cities rely on.

The largest port on the United States’ East Coast, the Port of New York and New Jersey leverages its strategic position at the heart of the New York metropolitan region to maximise efficiency. It is capable of delivering key infrastructure materials, including cement, which made up almost one fifth of the port’s bulk tonnage in 2022.

An integrated logistics hub set a short four-kilometre from downtown Barcelona, the Port of Barcelona is well connected. Similar to the Glebe Island silos which can currently store up to 72,000 tonnes of cement, the Port of Barcelona’s cement facilities include vertical silos which can store up to 145,000 tonnes of cement, able to be quickly transported to metropolitan areas that need it most.

Further afield to the small yet growing Quebec, the close proximity of its port to the metropolitan and city centre sets the city up for urban renewal. The last deep-water port in the St Lawrence River, which connects Canada to North America, the Port of Quebec ensures the transport of nearly two million tonnes of materials including cement, aggregates and gypsum each year. The transportation of these materials facilitates Canada’s construction growth, one of the highest contributors to its GDP, contributing $151 billion to the economy.

These ports are cleverly embracing their surroundings through integration with the urban environment, creating a blueprint for coexistence between industry and city life. Back home, Glebe Island’s bulk infrastructure and construction material facilities and strategic location echo its northern counterparts.

Continuing to evolve

With the increasing demand for urban-integrated port operations, city ports need to ensure they operate sustainably alongside their residential communities.

Sydney boasts leading noise monitoring technology, advanced air emissions monitoring, and we are developing carbon reduction measures that will deliver the first shore-powered cruise terminal in the Southern Hemisphere, with opportunities to further enhance community activities within this essential industrial powerhouse.

Our inner-city ports continue to be the backbone that sustains our cities – making Sydney a more prosperous, sustainable, resilient and liveable city.

This article appeared in the August | September edition of DCN Magazine