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Channel deepening at Outer Harbor

7 January 2005

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SA’s economy will benefit by between $500 million and $1.9 billion over 20 years – not counting grain industry benefits in using larger ships

Flinders Ports has already pledged financial support for the project from savings made from relocating the new Outer Harbour grain berth

About 2.7 million cubic metres of spoil will be dredged and relocated at an environmentally acceptable site in St Vincent Gulf, 35km northeast of Port Adelaide.

As the scale of shipping service grows, Adelaide will come under increasing pressure to keep the shipping services it already has, let alone attract new, more efficient services to new and current destinations.

The State needs to provide reliable container services in order to cater for the growing needs of South Australia’s importers and exporters.

If shipping lines take Adelaide off their schedules, SA-based importers and exporters will be forced to move their goods by rail and road to other ports – at significant extra cost, and taking away associated business from SA.

The Port of Melbourne, South Australia’s major port competitor through rail and road freight transfers from Adelaide, has also announced plans to deepen its main channel in Port Phillip Bay – at a cost of up to $450 million.

A battle between SA and Victoria to see who can deepen its port first is underway, with the victor in the front seat to attract the additional economic benefits that will flow from the project.

 

IMPLICATIONS BY 2013, IF THE CHANNEL IS NOT DEEPENED

  • $2.8 billion a year of SA trade will be at risk.
  • 150,000 containers per year will move by road or rail to Melbourne.
  • Road and rail transport accident costs will be higher by $850,000 a year.
  • Greenhouse gas emission damage will be higher by $650,000 a year.
  • Road damage will be higher by $1.8 million a year.
  • Employment will fall by 2172 jobs.

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