Road Carriers and Stevedores Servicing Port Botany are Subject to Mandatory Performance Standards

Road carriers and stevedores servicing Port Botany are subject to mandatory performance standards that regulate road freight movements to and from the port.

The standards are embedded in the Ports and Maritime Administration Regulation 2021. They came into force in 2010 and were last updated in September 2021

Proposed change to the Mandatory Standards – Open for consultation 6 to 27 May 2022

Transport for NSW has proposed a change to the Port Botany Landside Operations Mandatory Standards (the Mandatory Standards) truck time zones.

Currently, time zones at the three stevedores start on the hour for booked slots.

The proposed change will allow time zones for truck booking slots to start every half hour, the slots would continue to be one hour in length and overlap with adjacent time zones.   

The proposed change aims to spread out truck arrivals and reduce queueing at the start of each time zone. 

The proposed change to time zones was requested to support terminal and landslide efficiency, and the Mandatory Standards require changes to accommodate this while retaining other arrangements.

As part of the proposed change, stevedores would be able to continue to release slots on the hour as per current practice or have slots start every half hour.

For truck operators there would be no change to the total time allowed for trucks to arrive or any other arrangements related to bookings provided under the Mandatory Standards such as manifesting together two bookings in adjacent time zones.

This proposed change is being considered outside of the current Independent Review of the Ports and Maritime Administration Act 1995 (the Act) and Port Botany Landslide Improvement Strategy to support more immediate implementation to improve efficiency and to facilitate the infrastructure work being planned and constructed in the Port precinct.

View the proposed change to the Mandatory Standards here (PDF, 849.34 KB).

Frequently asked questions

What is the proposed change?

The proposal is to amend the Mandatory Standards to allow slots to start every half hour (as well as the current practice of on the hour).

This change aims to reduce queueing at the start of each hour by spreading out truck arrival times.

What impact will the proposal have on stevedores?

If implemented, stevedores would be able to adopt the new arrangements for truck bookings and start the one-hour time zones each half hour or continue with current practice.

The change is expected to spread out truck servicing and reduce truck queueing.

What impact will the proposal have on road carriers?

If the proposed change is adopted by a stevedore, road carriers would have slots available at that stevedore’s terminal on the hour and half past each hour.

There would be 48 time zones each day rather than the current 24 time zones.

The change is expected to spread out truck arrivals, reducing
queuing times.

There would be no change to the total time allowed for trucks to arrive (time zones for slots will continue to have a one-hour duration), there would be no change to the current total number of slots supplied each day or any other regulated arrangements related to bookings provided by the Mandatory Standards, such as manifesting together two bookings in adjacent time zones.

What changes will be made to the Mandatory Standards?

To implement this proposal, a number of changes to the Mandatory Standards are required to retain all existing requirements related to the time zones. The key changes are:

  • In relation to “Slots”, references to “Hour” will be replaced with “Time Zone” so that slots can start either every half hour or on the hour.

The minimum number of slots will be set as a total number for the day, currently 1,296, divided by the number of time zones offered by a stevedore. There are no changes to the total minimum number of slots available in a day.

This means:

  • If a stevedore starts slots every half hour, they will be required to make available a minimum of 27 slots in each of their 48 time zones in a day.
  • If a stevedore starts slots on the hour, they will be required to make available a minimum of 54 slots in each of their 24 time zones in a day.
When would the changes start?

Following stakeholder consultation, if the proposal is adopted, the Minister for Transport will issue an Order setting the updated Mandatory Standards.

Transport for NSW and any stevedore operational system changes needed to implement this could then be made, for an expected commencement inJune 2022.

How does this relate to the Independent Review of the Ports and Maritime Administration Act 1995 and Port Botany Landslide Improvement Strategy?

A comprehensive independent review of the Ports and Maritime Administration Act 1995 andPort Botany Landslide Improvement Strategy (PBLIS) commenced on 12 November 2021,led by
Mr. Ed Willett.

The review will consider, amongst other things, whether the PBLIS arrangements remain fit for purpose and support efficiency and productivity at the port.

The final report with Mr Willett’s recommendations is due to be provided to government later this year and implementation will then subsequently be considered.

The truck congestion mitigation proposal has been requested to support terminal infrastructure construction and the timing does not align with the broader review process.

Consultation on proposed change to the Mandatory Standards

Transport for NSW is consulting with stakeholders on a proposed change the Mandatory Standards truck time zones.

If you would like to take part in one of our virtual consultation sessions, please register below.

Virtual consultation session 1

When: Tuesday 17 May, 2022

Time: 1pm – 2pm

Register here

 

Virtual consultation session 2

When: Friday 20 May, 2022

Time: 3pm – 4pm

Register here

Written submissions on the proposed changes will be received until Friday 27 May, 2022, and can be emailed to freight@transport.nsw.com.au

 

Background and previous changes made to the Mandatory Standards

The current Mandatory Standards were last updated September 2021.

Mandatory standards were introduced under the Port Botany Landside Improvement Strategy (PBLIS) following a 2008 Independent Pricing and Regulatory Tribunal (IPART) finding that:

  • Bottlenecks at the port caused congestion on the wider Sydney road network
  • Waiting times for trucks were often unreasonably long
  • Stevedores were unable to service trucks within the timeslot booked due to a lack of clear rules around terminal delays
  • Ineffective working relationships between stevedores and truck drivers were hurting supply chain operations
  • There was no performance data available about landside operations.

Read the IPART report (PDF, 1.09 MB) and the NSW Government response (PDF, 94.57 KB).

Detailed information

Operational performance measures

Operational performance measures improve efficiency at Port Botany’s landside interface by encouraging the port supply chain’s stakeholders to be accountable to each other for their on time and servicing performance.

The operational performance measures are:

Road carriers: early arrivals, late arrivals, no shows, and cancellation of bookings (listings)

Stevedores: minimum number of slots offered per hour, truck turnaround time, failure or refusal to perform truck servicing, and time zone cancellations.

There are approximately 350 road carriers regularly operating at at the three stevedores in Port Botany.  The stevedores are DP World Australia, Sydney Autostrad Terminal and Sydney International Container Terminals Limited.

Financial penalties

Road carriers and stevedores are required to adhere to their operational performance measures to be compliant with the mandatory standards. If the standards are not met and the carrier or stevedore is found liable, they must pay a financial penalty to the other party.

Invoicing

Financial penalties are issued through each stevedore’s invoicing process. Stevedores invoice road carriers that have not met operational performance measures detailing penalties they owe. They ‘self-invoice’ for financial penalties they owe to road carriers.

The CMCC monitors and audits these invoicing processes. If it finds that a party has not issued a penalty, issued a penalty incorrectly or has not paid a penalty, they may be fined.

Impact of mandatory standards

By 2018, the road efficiency reforms at Port Botany will have delivered almost $100 million in economic benefits to importers, exporters, taxpayers and consumers (Deloitte Access Economics report).

The reforms have resulted in:

Less congestion on Sydney roads

Faster truck turnaround times – down from an average of 38 minutes in 2011-12 to 25 minutes in 2017-18 – and shorter truck queues:

More efficient terminal operations

More capacity during peak-hour operations

Higher cost savings and lower labour and capital costs as throughput continues to increase

Better working relationships between road carriers, stevedores and other players in the supply chain.