Projects

Economic Analysis of the Western Sydney Intermodal Terminal and Freight Line

NineSquared’s economic analysis for the Western Sydney Intermodal Terminal and freight line identified NSW’s growing freight demand and the need for future capacity and efficiency in container trade at Port Botany

Date

2020

Location

Sydney, NSW

Client

Transport for NSW

Transport Economics Market Assessments

Background

Australia conducts 98% of its international trade through ports. Port Botany, Australia’s second largest container port accounts for almost a third of Australia’s total container trade. Port Botany will continue to play a key role supporting the NSW and Australian economy as the population of NSW continues to grow, particularly within Sydney.

Sydney’s growing population and economy are driving the demand for goods – especially imports moved by containers – placing increasing pressure on existing rail and road networks. Western Sydney plays a critical role in NSW supply chains. It is estimated that the total volume of containerised freight that has its origin or destination in Western Sydney will reach over 4 million TEU (twenty-foot equivalent unit) by 2041. Investment in freight network capacity will be important for enabling this growth and supporting the future needs of NSW communities and businesses.

NSW freight policy identifies the need for a dedicated freight line and new intermodal freight terminal (IMT) to support the growing NSW freight task. Infrastructure Australia estimates that the total savings from protection and early acquisition of Western Sydney Freight Line and IMT access is potentially up to $1.6 billion.

NineSquared was engaged by Transport for NSW (TfNSW) to undertake a separate strategic and economic analysis projects for the proposed Western Sydney Intermodal Terminal and Western Sydney Freight Line. The projects were undertaken to support the proposed rezoning of the Mamre Road Precinct within the Western Sydney Employment Area, and support planning for Stage 2 of the Western Sydney Freight Line.

Our role

Our role in the engagements included:

Assessing the strategic case (‘case for change’) for holding the land for a future intermodal terminal and freight line in Western Sydney.
Undertaking an economic assessment of the potential benefits of the IMT development which included:

- Catchment and terminal demand analysis to determine the likely markets (volumes) the terminal may serve and the degree of contestability of these markets
- Preliminary economic evaluation of the economic, social and environmental benefits as a result of the intermodal terminal and freight line.

Reviewing the planning procedures required to reserve the land for the development of an intermodal terminal.
Facilitating an industry forum to seek feedback from developers, landowners and community stakeholders on the Draft Structure Plan for the Mamre Road Precinct and options for preserving land for a future Western Sydney IMT.
Presenting options to protect and/or acquire the intermodal terminal land/s for the future development of an Intermodal Terminal. This included potential staged approaches and interim land use options for the site.

We also provided support beyond the economic analysis to support critical stages of stakeholder engagement and planning. NineSquared facilitated a forum to seek feedback from developers, other landowners and community stakeholders on the Draft Structure Plan for Mamre Road Precinct and options for preserving land for a future Western Sydney Freight Terminal.

Results and relevance

The area for the intermodal terminal was successfully rezoned in June 2020, with revisions to the proposed site supported by industry. We also provided strategic advice to help finalise the Development Control Plan for Mamre Road Precinct in late 2021. This included independent analysis and advice on issues raised by stakeholders in relation to an internal road network for automated vehicles.