Creating Value For Regional NSW
With a Newcastle Container Terminal
The Port of Newcastle Container Terminal will deliver significant benefits to both farmers and exporters creating an exciting, globally leading supply chain out of the Northern NSW grain belt.
The NDCT will overcome constraints and drive down costs, improve cycle times between farm and port and increase competitiveness in both domestic and international markets.
Australian farmers operate in a global market. Grain sold to Asian markets and beyond are not just competing with other Australian or local product, but producers right around the world including from the Black Sea or Canada.
Each producing region has its own advantages – either low cost labour, highly productive farming practices, proximity to market or world-leading transport models. The end result is that all of these producers are selling to the same global customer, and competition in this globalised marketplace is stronger than ever before.
In Australia, we have some of the best produce and most highly productive farming practices in the world. But as is often the case, given the size of our vast country – the supply chain component of our exporters can be a high cost component. Up to 30 per cent, and in some instances, 40 per cent, of farmers production cost can be wrapped up in transport costs.
Costs | 2013 | 2014 | 2015-2016 | 2016 | 2017 | |||
($/T) | Australia | Canada | Australia | Ukraine | Russia | Australia | Argentina | Australia |
Cartage Farm-site | 8.9 (12%) | 10.7 (10%) | 8.9 (11%) | 4.3 (8%) | 3.5 (6%) | 7.8 (9%) | 2.9 (5%) | 7.8 (11%) |
Upcountry Handling | 11.9 (16%) | 15.2 (14%) | 14.4 (17%) | 7.7 (14%) | 9.2 (16%) | 18.4 (22%) | 13.2 (21%) | 10.4 (15%) |
Storage | 6.8 (9%) | 17.7 (16%) | 8.9 (11%) | 2.9 (5%) | 5.1 (9%) | 9.0 (11%) | 1.4 (2%) | 5.0 (7%) |
Transport Upcountry to Port | 21.6 (29%) | 46.8 (44%) | 27.8 (33%) | 13.3 (23%) | 15.5 (28%) | 26.7 (32%) | 29.5 (47%) | 23.6 (33%) |
Port Charges | 21.2 (29%) | 13.9 (13%) | 21 (25%) | 23.8 (42%) | 22.4 (40%) | 19.9 (24%) | 15.5 (25%) | 21.7 (30%) |
Leavies and Check-offs | 2.9 (4%) | 3.0 (3%) | 2.8 (3%) | 4.9 (9%) | 0.1 (<1%) | 2.8 (3%) | ndb | 2.8 (4%) |
Total Supply Chain Costs | 73.3 | 107.3 | 83.8 | 56.9 | 55.8 | 84.6 | 62.5 | 71.3 |
Production Cost | nd | 139.1 | 157.1 | 133.0 | 121.1 | 148.3 | 140.0 | 148.8 |
Supply Chain Proportion | nd | 0.44 | 0.35 | 0.30 | 0.32 | 0.36 | 0.31 | 0.32 |
Benefits to Regional NSW
Port of Newcastle has been focused on delivering a container terminal to improve the agricultural supply chain, particularly in the North West of NSW for a number of reasons.
It is driven by a desire for new growth and revenue of course, but there are a number of additional benefits:
MAXIMISING RETURNS FOR FARMERS
BIGGER TRAINS & PAYLOADS
1350m long trains twice the size of the current Botany service.
NETWORK FLEXIBILITY
Dedicated freight network, unlike the Sydney Network.
ENVIRONMENTAL CARE
Rail is a cleaner, greener freight alternative that is three times less carbon intensive and three times more fuel efficient than road.
ROAD SAFETY AND REDUCED FUEL USE
Each of the new large trains is carrying the equivalent of 70 B Doubles of freight. When you consider each day we deliver trains carrying around 23,000 tonnes of freight per hour, that’s the equivalent of a B Triple every ten seconds – without the safety impacts or damage to local roads.
STIMULATE LOCAL ECONOMIES
Every dollar saved by a local farmer, supports jobs and is reinvested into the local community and economy.
OPENING NEW MARKETS
By reducing costs, farmers are more competitive and a more competitive price point brings new markets into play. Leveraging the strong reputation of quality Australian products, it enables growers to operate in new markets.
SUPPLY CHAIN EFFICIENCY
Longer train lengths mean reduced overall train path usage and increased capacity on the rail network. A win for all industries using the network.
LGA | NEXT CLOSEST PORT TO NEWCASTLE | KM SAVED | KM SAVED (PER CENT) | DOLLARS SAVED PER TEU | DOLLARS SAVED PER TONNE |
Moree Plains | Brisbane | 100 (*) | 20% | $270 | $10.80 |
Armidale Regional | Brisbane | 150 | 31% | $404 | $16.16 |
Narrabri | Botany | 191 | 32% | $517 | $20.68 |
Tamworth Regional | Botany | 191 | 40% | $517 | $20.68 |
Gunnedah | Botany | 191 | 38% | $517 | $20.68 |
Liverpool Plains | Botany | 191 | 45% | $517 | $20.68 |
TELL YOUR MP:
A Container Port at Newcastle
Will Save Regional NSW Billions
The Newcastle Deepwater Container Terminal will deliver substantial cost savings for NSW exporters and importers.
Economic analysis has identified that regional NSW businesses, including those in the Upper Hunter, New England and Northern NSW regions would receive significant savings by shipping through Newcastle compared with Sydney or Brisbane.
If you want to voice your support for the Newcastle Deepwater Container Terminal, please contact your Local Member and include community@portofnewcastle.com.au in your communications.
REGION | LGA | NEXT CLOSEST PORT TO NEWCASTLE | KM SAVED | KM SAVED (PER CENT) | DOLLARS SAVED PER TEU |
Central West | Dubbo Regional | Botany | 150 | 45% | $445 |
Far West | Broken Hill | Botany | 78 | 6% | $232 |
Greater Metropolitan Newcastle | Cessnock | Botany | 175 | 78% | $520 |
Lake Macquarie | Botany | 189 | 90% | $561 | |
Dungog | Botany | 190 | 70% | $564 | |
Muswellbrook | Botany | 191 | 60% | $567 | |
Singleton | Botany | 191 | 71% | $567 | |
Upper Hunter Shire | Botany | 191 | 55% | $567 | |
Maitland | Botany | 199 | 86% | $591 | |
Mid-Coast | Botany | 209 | 58% | $621 | |
Newcastle | Botany | 216 | 96% | $641 | |
Port Stephens | Botany | 217 | 83% | $644 | |
Mid-North Coast | Coffs Harbour | Brisbane | 9 | 2% | $27 |
Bellingen | Brisbane | 59 | 14% | $175 | |
Nambucca | Brisbane | 142 | 30% | $422 | |
Port Macquarie-Hastings | Botany | 209 | 47% | $621 | |
Kempsey | Botany | 209 | 42% | $621 | |
Northern | Gwydir | Brisbane | 10 | 2% | $30 |
Inverell | Brisbane | 15 | 3% | $45 | |
Moree Plains | Brisbane | 100 | 20% | $297 | |
Armidale Regional | Brisbane | 150 | 31% | $445 | |
Narrabri | Botany | 191 | 32% | $567 | |
Tamworth Regional | Botany | 191 | 40% | $567 | |
Gunnedah | Botany | 191 | 38% | $567 | |
Liverpool Plains | Botany | 191 | 45% | $567 | |
Uralla | Brisbane | 193 | 37% | $573 | |
Walcha | Botany | 209 | 43% | $621 | |
North-Western | Cobar | Botany | 78 | 10% | $232 |
Bogan | Botany | 78 | 12% | $232 | |
Bourke | Botany | 78 | 9% | $232 | |
Narromine | Botany | 78 | 15% | $232 | |
Western Plains Regional | Botany | 79 | 17% | $235 | |
Warren | Botany | 97 | 17% | $288 | |
Walgett | Brisbane | 117 | 16% | $347 | |
Brewarrina | Brisbane | 117 | 14% | $347 | |
Gilgandra | Botany | 122 | 24% | $362 | |
Coonamble | Botany | 122 | 20% | $362 | |
Warrumbungle Shire | Botany | 168 | 34% | $499 | |
Sydney Surrounds | Central Coast | Botany | 72 | 45% | $214 |


