DP world signs new Port Botany lease

DP World signs new lease at Port Botany, which includes incentives to improve truck servicing and rail performance

International marine terminal operator DP World has signed a new 15 year, multi-million dollar lease for its operations at Port Botany, which includes incentives to improve truck servicing and rail performance at the port to reduce traffic congestion.

DP World has been operating at the facility since 1979 and handled almost 800,000 containers there last year and this latest deal follows similar long term commitments made by the company in Brisbane and Adelaide.

New South Wales Premier Nathan Rees, who made the announcement yesterday, says the new long term new-look lease is a commitment by the State Government to improve overall port efficiency.

"This is the first time a lessee at Port Botany has contractually undertaken to meet performance standards not only in relation to its ship loading functions, but also in relation to road and rail servicing operations," Rees says.

Echoing the premier, NSW Minister for Ports Joe Tripodi says more agreements like the one reached with DP World will follow, as the government offers incentives to terminal operators in order to combat congestion at the port.

"The new lease forms an integral part of the Sydney ports reform agenda and I'm delighted to be able to take this step with one of our key stakeholders," Tripodi says.

"The new rental model for stevedore leases at Port Botany provides incentives for operators to improve their performance by way of lower rents."

The agreement between the Sydney Ports Corporation and DP World will also include a commitment to capital expenditure over its 15 year life which will benefit the port in the long term, according to Sydney Ports Corporation Chief Executive Grant Gilfillan.

"These reforms will assist the NSW Government to achieve its policy objectives of increased competition and trade growth, greater investment in port facilities and a target of 40 percent rail mode share of containers to and from Port Botany," Gilfillan says.

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