A new joint venture (JV) between DP World and Toll Logistics in Sydney, Australia could provide a container shuttle out of Port Botany and slash exports of empty boxes.
The proposed 50/50 JV between Australia’s biggest freight and logistics provider and its biggest stevedore announced this week would see a dedicated container staging point at the port. This would connect with an intermodal freight terminal in the suburb of Villawood, 25 km west of Sydney, by rail shuttle.
Services for shipping lines would be enhanced by reducing unnecessary stevedoring of empty containers – Australia’s main export out of its container terminals since the collapse of its manufacturing industry in recent decades.
Empty containers from imports would no longer have to be de-hired near the port, but instead placed closer to the points that exporters need them, Brian Gillespie, DP World chief strategy and new enterprise officer, confirmed to IHS Maritime via email.
“Villawood allows shipping lines to de-hire empty containers more economically for importers and provides them with a differentiated freight offering,” a DP World statement provided to IHS Maritime said.
It would also facilitate the movement of containers in and out of the port along a dedicated freight line completed in 2013, rather than congested city roads shared with commuters and other road users.
Several major shipping lines have already indicated an interest in using the Villawood inland port, according to DP World.
The project could see between 180,000 teu and 200,000 teu moved by rail between the port and the terminal every year, according to DP World.
Much of the infrastructure is already in place with the JV scheduled to start operations in 2017.
DP World Australia managing director and CEO, Paul Scurrah, said that utilising the experience and resources of both companies would see a new end-to-end service offering for customers.
“By using the expertise and existing assets of DP World Australia and Toll, this proposed JV will create new efficiencies and competition in the Sydney import-export supply chain,” he said.