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Containers and Rails: Revisiting a Missed Opportunity

The rise of containerization has revolutionized international trade, enabling the efficient movement of consumer goods, raw materials, and processed goods across the globe. In 2020, maritime trade carried an estimated 149 million full twenty-foot equivalent units (TEUs), valued at approximately $8.1 trillion in containerized cargo.

In Australia, the maritime logistics system played a vital role in facilitating international trade, handling over 9.4 million TEUs in 2020-21.

The evolution of Australia's port landscape has been shaped by growth in trade volume, advances in engineering, and development pressures. As containerization transformed the industry, capital city port operations gradually migrated downstream from their original locations. This shift was driven by the need for more spacious and efficient facilities, as well as the desire to repurpose inner-city port land for alternative uses.

Over the past decade, international container trade has experienced robust growth across the five capital city ports, with volumes increasing by 34% between 2011-12 and 2020-21. Although the number of ship calls has decreased over this period, the average volume per ship visit has steadily increased, reflecting the trend towards larger, more efficient vessels.

As containerization transformed the industry, capital city port operations gradually migrated downstream from their original locations. This shift was driven by the need for more spacious and efficient facilities, as well as the desire to repurpose inner-city port land for alternative uses. The relocation of port facilities is often a complex and incremental process, driven by the challenges of finding suitable new sites and transplanting the existing network of activities and logistics systems. Furthermore, there is a need to balance the relocation of container port activities with the continued presence of other import-focused commodities, such as bulk and break-bulk cargo, including roll-on, roll-off vehicle trades, which coexist with containerized cargo.

As Australia's ports continue to evolve, the efficiency of landside connections plays a critical role in the overall performance of the maritime logistics system. In particular, the cost of moving containers to and from ports is the second-largest expense in the system, surpassed only by blue-water charges. This underscores the importance of optimizing road and rail connections to ports, ensuring seamless and efficient movement of containerized freight.

In reviewing the efficiency of landside connections, this inquiry focuses on rail access to Australia's container ports. While road transport offers several advantages, including flexibility and convenience, it also contributes to congestion and has broader social and environmental impacts. As a result, there have been long-standing calls for increased use of rail, which has led to plans by port operators and governments to invest in dedicated rail infrastructure and intermodal terminals.

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