Problem to be addressed
The annual volume of shipping containers moving through Port Botany is expected to increase by 4.5 million twenty-foot equivalent units (TEUs) over the coming decades. Investment in on-dock rail infrastructure at Port Botany to increase its capacity, combined with growth in containerised rail freight demand at metropolitan intermodal terminals, will increase pressure on the Metropolitan Freight Network (MFN). In particular, demand is expected to exceed capacity on the Southern Sydney Freight Line (SSFL) and Port Botany Rail Line (PBRL) from 2026.
The Cabramatta Passing Loop will increase rail freight capacity on the SSFL by allowing freight trains travelling in either direction to pass each other, while the PBRL Duplication will enhance the reliability, flexibility and capacity for container freight operations to and from Port Botany. Undertaking both project components concurrently provides a supply chain solution necessary to encourage freight owners to transport more containers by rail and help reduce road congestion.
The project will provide the capacity required to meet forecast rail demand generated by the Moorebank Intermodal Terminal, Enfield Intermodal Terminal, the St Marys Intermodal Terminal (from 2022), and future terminals, including a site planned near Western Sydney Airport (WSA). The proposed construction timeframe aligns and integrates with the design and construction of the Sydney Gateway (road) Project, located adjacent to Sydney Airport.
There is strong strategic merit for the project as it supports the NSW Government’s aim to increase the mode share of containers being moved by rail to and from Port Botany.
The proponent, the Australian Rail Track Corporation (ARTC), proposes a design and construct delivery method, with tendering and award of the contract carried out according to ARTC’s procurement policies and procedures. This is an appropriate delivery strategy, as the ARTC has the experience and capacity to deliver the project and will build, operate and maintain both components of the project once complete.
Economic, social and environmental value
The proponent’s reported net present value (NPV) for the project is $429.7 million, with a benefit-cost ratio (BCR) of 2.68 using a 7% real discount rate and P50 capital cost estimate. Infrastructure Australia has independently reviewed the business case and agrees with the proponent that the benefits of the proposed project would significantly exceed its costs.