Paul Scurrah Managing Director & CEO

Investing for future growth at Australia’s ports

AusIntermodal 9 September 2014

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Agenda

Investing for future growth in Australian Ports •  The Task Ahead •  Future Growth in Existing DPWA Facilities

•  Quay Capacity •  Yard Capacity •  Road Capacity •  Rail Capacity

•  Increasing Capacity through Investment •  Capital

•  Case Study Brisbane Automation •  DPW Melbourne Rail

•  Productivity •  Policy Framework

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The Task Ahead

•  Container volume continues to grow •  2013/14 Financial year TEU volume growth was 3.5% nationally •  YTD TEU volume growth to end of July is 5.4% nationally

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Future Growth in DPWA Facilities

•  DPWA existing facilities have capacity for future growth. •  Existing yard capacity only utilised to 63% •  Existing quay capacity only utilised to 47%. •  Does not take account of Patrick's capacity and the third terminals on the east

coast.

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Macquarie Research - Marketshare

Vessel Capacity Changes

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Vessel Capacity Changes

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Road

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•  Data is based on current slots made available. •  DPWA have the ability to increase capacity of available slots (eg: weekend slots

in Fremantle).

Data Source: BITRE Waterline 54

82.0%

84.0%

86.0%

88.0%

90.0%

92.0%

94.0%

96.0%

98.0%

100.0%

Jul - Dec '11 Jan - Jun '12 Jul - Dec '12 Jan - Jun '13 Jul - Dec '13

% Timeslots Used

Increasing Capacity through Investment - Productivity

•  Australian productivity needs to improve •  Crane rates have shown limited increase •  Ship rate increasing but also a product of crane density •  Improved labour relations law •  Improved culture in workforce •  Alignment of outcomes through incentives

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Case Study - Brisbane Automation

•  Brisbane Terminal originally fork lift terminal •  600k TEU Capacity

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900m

Case Study - Brisbane Automation

•  New mode automated stacking cranes •  Terminal Capacity increased to 1 million TEU •  $250 million expenditure •  When fully built up as demand requires 1.8 million TEU

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Case Study - Brisbane Automation

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Rail’s share of the landside task

•  Rail important •  Rail Share of landside task stagnating •  Necessary for rural and metropolitan •  Capacity in existing facilities

13 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%

BRISBANE

SYDNEY

MELBOURNE

ADELAIDE

FREMANTLE

TOTAL

RAIL MOVEMENTS - % TEUs BY RAIL Jul - Dec '13

Jan - Jun '13

Jul - Dec '12

Jan - Jun '12

Jul - Dec '11

Data Source: BITRE Waterline 54

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Melbourne Case Study - Productivity

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Melbourne case study: Current – rail and Coode Road

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Melbourne rail operations

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Melbourne Future handling – post expansion

Policy Settings

Ports Policy • Consistent Long Term policy setting • Melbourne uncertainty Hastings vs Bay West • Melbourne Privatisation • Fremantle EOI

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QUESTIONS?

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