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The Emerging opportunities for New Port Development Economic Reach Adrian Sammons

The Emerging opportunities for New Port Development Economic Reach Adrian Sammons Director AustralAsia Trade Route Department of The Chief Minister Northern Territory Government of Australia. Economic reach The Great Freight Task

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The Emerging opportunities for New Port Development Economic Reach Adrian Sammons

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  1. The Emerging opportunities for New Port Development Economic Reach Adrian Sammons Director AustralAsia Trade Route Department of The Chief Minister Northern Territory Government of Australia

  2. Economic reach The Great Freight Task Standing Committee on Transport and Regional Services July 07 At a time of unprecedented prosperity and in the midst of an international resources boom, there could be no more potent images of lost opportunity, than the sight of queues of up to 50 vessels off three of our major bulk ports.

  3. Economic reach Spatial Economics Changing markets, newly commissioned competitive infrastructure, costs & technologies cause many existing ‘terminal’ sites to be no longer suitable. This applies particularly to rail and port terminals.

  4. Economic reach • Spatial Economics • The importance of locations changes with fluctuations in: • TRADE • VOLUME GROWTH • COST OPPORTUNITIES

  5. Economic reach • Spatial Economics • Spatial relationships between seaports are vital elements in competition • CENTRALITY • INTERMEDIACY

  6. Economic reach • Spatial Economics - Hinterlands • Hinterlands are often noted; • FUNDAMENTAL HINTERLAND • COMPETITIVE HINTERLAND • FORELANDS

  7. Foreland D Economic reach Hinterland B A Fundamental hinterland Competition margin C

  8. Economic reach Case Study – Bulk cargo Maritime shipping is dominated by bulk cargo, which roughly accounted for 69.6% of all the ton-miles shipped in 2005.

  9. Economic reach Case Study – Rail activity

  10. Economic reach Case Study – The Route Selection Process The choice of linking one location to another, importantly, the path selected is part of a route selection process which respects a set of constraints. R = f(min C : max E) Route selection thus tries to find or use a path minimising costs and maximising efficiency.

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  12. Transaction Costs Friction of Distance A B Shipment 12

  13. Supplier Customer Port Point-to-Point Stockpilecenter Economic reach Case Study – Bulk commodity chain

  14. SWL Exceeded

  15. 15

  16. 2112km 28 hours to Darwin 800km 11 hrs to Adelaide 16

  17. Adelaide / Dalian 5731 nm Darwin / Dalian 3175 nm Variance 2556 nm Economic reach Case Study – Bulk commodity chain

  18. Illustrative 18

  19. Illustrative 19

  20. Illustrative 20

  21. Thank you

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