A new report finds the Port of Brisbane’s 90 hectare Port West industrial estate offers holistic supply chain advantages
By Anna Game-Lopata | March 15, 2013
A new report by logistics consultancy Essco finds the Port of Brisbane’s 90 hectare Port West industrial site offers holistic supply chain benefits.
The report authors, commissioned by the Port to uncover how the site compares to other localities for new industrial developments, say they initially expected Port West to come out less favourably.
Similarly, Essco interviewed a number of major supply chain managers in Australia whose immediate reaction was that Port West would not be the right location for a new
distribution centre (DC)
or value adding facility in Brisbane.
Essco Managing Director Liam Stitt says the centroid analysis, which considered the major population centres for Queensland and a good proportion of NSW, places Port West eighth behind such locations as Acacia Ridge and Richlands.
But he argues the research also shows when you compare the availability of land in the parcel size DC operators are typically looking for, Port West ranked a much better third, behind Larapinta and Yatala.
“With the trend towards privatisation, ports own land which is dedicated to industrial developments,” he says.
“The Port of Brisbane, like other privatised ports, has a land use plan for Port West, which
allows tenants to choose the size and shape of the land they want.
“They can also ensure they
will be able
develop and use their facilities in the way they want without being constrained
by residential developments,” he adds.
“Facilities located at Port West will
have permits for heavier vehicles and can be operational 24/7, without
fear of reprisals or conditions
from local councils or residents.”
Stitt also says the research uncovers two additional global trends in Port West’s favour which would need to be balanced against the benefits of other more ‘traditional’ locations.
“When considering their supply chain operations, most executives focus on the outbound secondary freight leg to their point of consumption,” he says.
“The thinking around this needs to change through an education process we hope our report will contribute to.”
Stitt says the
research reveals a movement in the UK and the US towards locating distribution operations at the port because this strategy optimises the whole supply chain including inbound freight.
“By being as close as possible to dockside, companies can make sure they process high volumes of goods off the ships in the most efficient way,” Stitt says.
He says in the UK, the trend towards ‘port centric logistics’ has come out of fast moving consumer goods and retail supply chains.
“These companies traditionally based their DCs in central UK, but they’re now relocating as close as possible to the ports in order to process heavier containers more quickly,” Stitt says.
“In America a lot of manufacturing and value adding in relation to the energy industry is being undertaken at east coast ports in order to better access facilities offshore.”
“While the Post West location would incur additional travel on the secondary freight leg, this would have to be traded off against the benefits that can be obtained by being in the Port precinct,” he says.
Stitt adds the Essco report also
shows a major trend towards heavier containers.
“We could see a definite increase in the weight of all containers being shipped across the board
from about 20-24 tonnes to closer to 30 tonnes,” he says.
“Estimates are that about 10,000 containers a year are moving into Brisbane in this much heavier weight format.”
Given this demonstrated increase in productivity, Stitt argues processing containers at the port makes much more sense.
“It also means you can reduce congestion and pollution by taking more heavy vehicles off the roads,” he says.
“Containers can be de-stuffed and empty containers don’t need to be transported
on the roads
before being stuffed again for export.”
Located six kilometres from the Port of Brisbane’s main container terminal facilities, the Port West Estate waterfront site currently has just one tenant.
Bunnings recently signed 10-year lease for a 7.65 hectare property at the site, where it plans to open a 30,450 square metre new distribution centre (DC).
The $45 million DC will be developed by the Port of Brisbane and is due for completion in late 2013.