Delivering an economic boost: NSW freight industry to grow to $130 billion

The Government today releases Delivering Freight Policy Reform in NSW, an expert report led by Dr Kerry Schott AO and a three-member panel.

The report, requested by government in January 2024, sets out a clear roadmap of short, medium and long-term actions to ready the state to better integrate freight into our transport networks into the future.

The NSW Government has accepted the report’s recommendations and also requested that further work be done by Dr Schott into barriers and opportunities for moving more freight at night to take advantage of off-peak capacity in the transport system, including our roads, motorways, rail network, terminals and distribution facilities.

The value of freight to the NSW economy is now $74 billion, employing 330,000 people, according to Transport for NSW data. The roadmap provides actions to boost productivity at a time when the sector’s contribution from Gross Value Add (GVA) is expected to grow by an average of $1.6 billion a year to 2061 when it will provide 565,000 jobs.

Delivering Freight Policy Reform in NSW has identified dozens of short to long term actions from amending the port policy for container terminals to recruitment programs to address workforce shortages.

Key actions from the plan include:

• Developing a freight master plan – to ensure an integrated and long-term approach through enhanced strategic planning for freight.
• A package of initiatives designed to increase rail modal shift by improving the competitiveness and efficiency of rail freight.
• Adopting a new port policy regarding container terminals in which the Government should not determine the timing or location of any future container terminals but recognise Port Botany remains the key container port for NSW.
• Delivering the Industrial Lands Action Plan, in partnership with Department of Planning, Housing and Infrastructure – focused on strategic land planning for freight purposes and addressing the shortage of industrial land availability.
• Government support for a program, in partnership with industry, to promote recruitment to address skills and workforce shortages which are consistently identified as a major risk facing the sector, particularly, in the first instance, heavy vehicle and train drivers as well as seafarers.

Dr Schott’s report notes the NSW Government is currently conducting a review into the future use of the Glebe Island Port and the entire Bays precinct ahead of the metro station linking the area to Parramatta, the CBD and the inner west. The Report notes the important role of Glebe Island and freight more generally but highlights that the co-location of homes and freight activity is typically not sustainable.

Any impacts on freight are being closely considered as part of that review.

The reform plan incorporates actions already committed through the NSW Heavy Vehicle Access Policy; the NSW Towards Net Zero Emissions Freight Policy; and the recommendations of the Port Botany Landside Improvement Strategy Review. 

The full report can be found on the Freight Policy Reform Program web page.

Port regulations

Based on industry feedback, the Panel has also clarified their recommendations relating to the Willett Review into the Ports and Maritime Administration Act (Act) and the Port Botany Landside Improvement Strategy (PBLIS).

The Panel’s paper identifies that 14 of the 21 recommendations are adopted with the remaining six recommended changes to the PBLIS Mandatory Standards identified for further consideration during the implementation process to mitigate against any unintended consequences.

Recommendation 18, to engage NSW Ports – the private port operator – as a service provider to administer elements of PBLIS, was not supported by Government for consideration at this time. 

More information can be found on the Freight Policy Reform Program web page and the Ports and Maritime Act and Port Botany Landside Improvement Strategy web page.

Minister for Transport John Graham said:

“The movement of freight is fundamental to how we all live our lives, the cost we pay for imported goods and the competitiveness of NSW manufacturers and producers.

“The NSW Government is determined to enable the freight sector to reach its potential, which could mean adding a further $131.5 billion year to the state’s economy and employing more than half a million people by 2061.

“Freight arrives at our biggest ports but moves through all our neighbourhoods on the road and rail network. Preparing those networks for the drivers of change to freight – especially population growth and technological change – is a big task and this report sets a roadmap to guide us.

“In relation to the changes to PBLIS, I have asked Transport for NSW to appoint an independent facilitator to help ensure industry is well consulted on implementation and will update the sector when we have appointed someone to the role.

“I am seeking further review of opportunities for increasing freight movement during off-peak periods, particularly through the night. Any additional recommendations will be incorporated into this action plan. I thank the reviewers for this reform plan.”