Purpose of Port Development Strategies
Section 91K of the Port Management Act 1995 sets out the requirement for the relevant port authority, as defined in the Port Management Act 1995, to prepare a Port Development Strategy. The Port Management Act 1995 also provides the legislative standing for this Ministerial Guideline for Port Development Strategies and that such strategies are to be prepared at five yearly intervals.
A Port Development Strategy is largely concerned with capacity planning for trade throughput at the port as well as the transport corridors from sensitive-use encroachment while managing potential urban amenity impacts. This focus reflects the key role of the planning system in appropriately balancing the economic needs of the State with liveability and community aspirations.
The purpose of preparing a Port Development Strategy includes:
- Articulating a medium and long term ‘port development vision’ to the port’s stakeholders;
- Creating economic value through supporting industry understanding, confidence and investment;
- Maximising economic outcomes through supporting efficient allocation of critical port land, services, and infrastructure;
- Assisting in overall supply chain efficiency through the provision of transparency in the broader transport network task and infrastructure requirements;
- Providing strategic direction in the role that ports play in the energy transition from fossil fuels;
- Providing strategic information to support an understanding of significant environmental and social issues, which have the potential to impact port operations and development;
- Supporting engagement with all stakeholders and clients, and building local goodwill; and
- Informing port landside access plans.
Benefits for the State and Ports
Port Development Strategies form part of a suite of port related strategies across state, regional and municipal levels. As a public document, the development vision in a Port Development Strategy provides a platform for ports to exchange information on relevant matters with government departments, agencies and municipalities. A Port Development Strategy is used by government to enable better alignment of port related proposals and aids in developing government plans, policies and strategies.
For the relevant port authority, as defined in the Port Management Act 1995, a Port Development Strategy provides visibility of the port development vision and objectives. As a public document it is a valuable reference for informing stakeholders on issues under consideration. A Port Development Strategy can identify strategies or actions which will involve working with stakeholders, and it will likely identify infrastructure needs within and around the extents of the port environs, such as transport improvements, which is used by government to inform port landside access plans. The Port Development Strategy will also provide the basis for a Planning Scheme Amendment for ports.
It is recognised that ports operate in a competitive environment where different trades are contestable across ports and regions. As such some aspects of port planning and development will need to remain confidential.
At the state level, Navigating our Port Futures: The Victorian Commercial Ports Strategy (2022) sets the 30 year vision and action plan to ensure that Victorian commercial ports continue to be responsive and resilient to change, provide efficient market access to support the economic and social wellbeing of all Victorians. Freight requirements and regional growth plans also help inform Port Development Strategies.
At the local level some municipalities undertake port structure planning or port environs planning in order to understand the opportunities and constraints around the port.
Intent and status of this Ministerial Guideline
This web-based Ministerial Guideline - Port Development Strategies (Ministerial Guideline) is made under section 91M of the Port Management Act 1995 and took effect on the date of gazettal, 07 March 2024, superseding the previous Ministerial Guideline of 10 July 2017. The relevant port authority must prepare a Port Development Strategy at intervals of 5 years in accordance with section 91K of the Port Management Act 1995.
This Ministerial Guideline addresses the key requirements outlined in the Port Management Act 1995, which focus on trade projections, land and port infrastructure requirements, and transport requirements. While the Port Management Act 1995 sets the provisions for a Port Development Strategy, port issues can be viewed within a wider policy and legislative framework.
This Ministerial Guideline also provides clarity for the relevant port authority on the content expectations for Port Development Strategies and provides suggestions on the methodology. Stakeholder engagement is recognised as a vital element of preparing a Port Development Strategy and expectations around consultation are discussed. Port Development Strategies must be published on the relevant port authority’s website.
Content of Port Development Strategies
A Port Development Strategy will address those matters concerned with future port development to handle freight, provide services, and passenger throughput. This includes consideration of the freight types, volumes, timings, and seasonal profiles. The strategy will identify potential future freight, industrial/port precinct expansion, and passenger activity through trade projections. These provide the basis for considering investment in and around the port or on freight related infrastructure.
The planning horizon for a Port Development Strategy is in the order of 25-30 years. The requirement that the relevant port authority, as defined in the Port Management Act 1995, prepare a Port Development Strategy at five yearly intervals is to ensure that port strategies remain responsive to changing circumstances.
It is hence desirable that a Port Development Strategy includes a port development plan of 5-15 years and a longer-term port development plan of 25-30 years.
Projections of Trade and Economic Benefit
Trade projections indicate likely throughput at a port and enable an assessment of the adequacy of port and related infrastructure into the future. Trade projections, of both import and export, are also valuable indicators for Government on the future demands of freight traffic on the wider Victorian transport network. Trade projections are not intended to disclose commercially sensitive information.
In considering projections of trade through a commercial trading port, the relevant port authority should:
- Use appropriate data sources and forecasting methodologies;
- Prepare trade projections for all existing trades handled by the port and include, as appropriate, information on passenger numbers and all pack types, including containers, automotive, liquid bulk, dry bulk and break bulk;
- Consider potential new trades or services which may be handled by the port; and
- Include trade forecasts for the planning horizon identified within the Port Development Strategy, in the order of 25-30 years.
A high-level summary of the most recent economic impact study should be included in a Port Development Strategy. Economic information provides an important overview of the value of the port to the national, state, regional and/or local economies. Ideally, the economic impact study will be no more than three years old.
Ports in the energy transition
Victoria is undergoing an energy transition as we shift to net zero carbon emissions across industry sectors over the coming decades. This will involve a radical shift away from fossil fuels and into new and emerging energy types and sources and their transmission and storage networks. Given the central role ports play in economic trade and industry supply chains, the relevant port authority should consider in their Port Development Strategy the roles and trades they expect or have capacity to support in the energy transition. This may extend to energy projects that are consistent with land use and energy networks in the port environs and/or are linked to the transport infrastructure that connects to the port.
Infrastructure requirements for port land, water and channels
Planning for infrastructure development at a port will be driven by a demonstrated need for increased capacity to handle trade throughput or changing trade requirements. Decisions by the relevant port authority to plan for and invest in future port infrastructure needs will generally be commercially driven and/or through government policy.
Identification of trade throughput and requirement trends will inform future port infrastructure needs and inform whole-of-supply chain logistics planning. Port Development Strategies are expected to identify future port infrastructure requirements anticipated to accommodate the forecast trade growth and changes, over time.
Integrated approach to port transport planning
The Transport Integration Act 2010 requires that all decisions affecting the transport system be made within an integrated decision-making framework. The relevant port authority, therefore, must have an active interest in broader network transport planning and supply chain efficiencies beyond the port gate. An efficient, reliable and curfew-free supply chain relies on an integrated approach to transport planning and accessibility. Port planning should actively contribute to identifying existing and forecast transport network needs to support port operations. An integrated approach to port transport planning in the Port Development Strategy will support the development of port landside access plans.
Port land use planning
The Port Development Strategy should include an overview of land use issues and opportunities faced by the port. This would help inform and ensure alignment with relevant state, regional and local land use planning relevant to ports. Identifying land required for future port activity provides a transparent signal on where port expansion or change is anticipated and as such facilitate appropriate planning considerations. It is acknowledged that port related industries are also located in adjoining industrial areas which are not under the direct influence of the relevant port authority or operator. The ‘boundary’ of a port can therefore be ambiguous and in some cases applying a ‘port area of interest’ will be appropriate in identifying port related land.
Port environs issues
Ministerial Direction 14: Port Environs’ purpose is to ensure that an amendment to a planning scheme will not introduce a sensitive use or will not intensify existing sensitive uses in the areas designated as port environs, if the use prejudices the operation of the port.
In considering port environs issues a Port Development Strategy must map the port environs as currently defined and should identify adjoining areas that may be impacted by port activities or associated transport activity, along with areas where encroachment has the potential to impact port operations and development. It is therefore desirable that the Port Development Strategy includes two maps or map layers of Port Environs.
- First, a map or layer which is identical to the current delineation of the port’s Port Environs at the time of Port Development Strategy finalisation, and
- Second, a map or layer delineating adjoining land which has the potential to be developed for uses that are incongruent with the port’s activities, and which may be considered for future amendments to Ministerial Direction 14. This second map’s delineation should be based on advice for delineating port environs which considers information about the potential health, safety and significant amenity impacts from port operations.
Port precincts and the planning scheme Port Zone
The use of port precincts, identifying where different types of port related trades could be expected to be accommodated, will continue to be a useful approach in many instances. Port precincts can be indicative, used to generally designate trades across and within the Port Zone. Precincts can also be used to specify where particular trades may be handled, stockpiled, or possibly moved-to to address land use interface issues with adjoining urban areas. Where appropriate, port precincts can designate use and development of trades to provide a more tailored approach to land use within the Port Zone.
Major Hazard Facilities
The Port Development Strategy must map Major Hazard Facilities within and in proximity to the Port Zone that should have a buffer area overlay applied to protect surrounding areas, including the Port Zone, from risk. Major hazard facilities are determined under Worksafe’s framework as set out in Occupational Health and Safety Regulations 2017 – Part 5.2.
The buffer area overlay identifies areas where there is a potential for offsite impacts on safety and human health, or significant impacts on amenity. Mapping the buffer area overlay from Major Hazard Facilities can also ensure that use and development within these areas is compatible with potential impacts.
Planning scheme amendment to formalise Port Development Strategy
Once the finalised Port Development Strategy is published, the relevant port authority must proceed with a suitable planning scheme amendment to formalise the work and give greater emphasis to the port in balancing its strategic needs with that of the surrounding community. Engaging with local councils accommodating ports is an important part of determining the most suitable planning pathway.
Environmental, sustainability and social considerations
The relevant port authority will need to consider environmental, sustainability, and social issues, as part of any proposed port developments and/or in the context of transport resilience, such as potential risks associated with climate change and the port’s climate change adaptation planning.
The relevant port authority will also need to consider social elements and, where security and operational requirements allow, can consider opportunities for maintaining or enhancing public access to waterfront locations.
Method and process for preparing a Port Development Strategy
Scoping of works
The relevant port authority, as defined in the Port Management Act 1995, will need to consult with Ports Victoria at the Port Development Strategy scoping stage. This will allow Ports Victoria to provide commentary on alignment of the Port Development Strategy scope with the needs of the Victorian ports system and the scope of the Port Development Strategy adhering with the intent of this Guideline.
A review of the current Port Development Strategy will consider its adequacy in the context of existing circumstances and will inform the task of preparing a new Port Development Strategy. The review should cover all relevant considerations. A summary of the Port Development Strategy review, identifying the key matters to be addressed in the next Port Development Strategy should be prepared and provided to Ports Victoria. Of particular interest will be the level of consultation proposed, as well as alignment with the Port Management Act 1995, this Ministerial Guideline and broader government policies and strategies. A period of at least one month should be provided for Ports Victoria and the Department of Transport and Planning to comment on the Port Development Strategy review summary.
The initial review will clarify the data requirements for the Port Development Strategy. Data will be obtained from various sources such as published material, a port’s own data generation or third-party advice from subject matter experts, input through consultation with port tenants, industry personnel and other stakeholders. The focus for data collection and consultation activities should include trade forecasting, port operating arrangements, port access and interface issues and opportunities, the port’s role in the energy transition, and emerging environmental and social considerations.
The relevant port authority will analyse and interpret data to provide an evidence-based understanding of trends, issues and opportunities. The primary focus of port strategy planning will be on facilitating port development to support future freight and passenger demand in an efficient and sustainable manner.
With regard to trade forecasts, identifying a range of trade scenarios can be beneficial. This can be more applicable where potential trades are identified, where existing trades have potential to shift between ports, where trades may cease, or where bulk trades historically have been volatile due to weather and other patterns. Consideration of the forecast trades associated with the energy transition will also be key to the analysis given the changing nature of the energy sector. The relevant port authority may consult with Ports Victoria during the analysis or share its results from the analysis, to help ensure a consistent approach across all commercial ports.
Stakeholder Consultation
The preparation of a new Port Development Strategy will typically involve considerable consultation throughout the strategy preparation process. The relevant port authority is expected to undertake a planning scheme amendment to reflect appropriate planning elements including the incorporation of a Port Development Strategy as a reference document in planning schemes. Consideration of the needs for a planning scheme amendment should be considered in stakeholder consultation. Any changes to a Port Development Strategy also warrant appropriate stakeholder scrutiny. Where there may be confidentiality issues, consideration should be given to capturing the implications of the information without disclosing commercial details.
Port managers, port tenants, licensees and service providers are directly impacted by port planning and are key Port Development Strategy stakeholders. It is likely that these stakeholders will be consulted by the relevant port authority at an early stage in the preparation of a Port Development Strategy. This group of stakeholders can provide invaluable input on trade forecasts, and potential port development proposals.
External people and organisations who may be affected or have a direct interest in a Port Development Strategy should also be consulted and provided with an opportunity to contribute. This is likely to include municipalities, community and interest groups, nearby residents and businesses, and government agencies.
Stakeholder consultation is not intended as a means of getting feedback on particular development proposals or a draft of the Port Development Strategy but rather it is more around awareness of key issues affecting the port community and potential port development.
Preparing a new Port Development Strategy is a significant undertaking and the relevant port authority is expected to liaise with Ports Victoria at an early stage, and prior to scoping and at the review stage. The penultimate draft should be provided to Ports Victoria at a minimum of twelve weeks prior to the due date. This will allow Ports Victoria four weeks to provide advice to the department for the Minister for Ports and Freight’s consideration. Based on this advice, the Minister for Ports and Freight will provide feedback to the relevant port authority within four weeks, allowing the relevant port authority a further four weeks to finalise their Port Development Strategy.
When considering a draft Port Development Strategy, the department will be concerned with ensuring an appropriate level of stakeholder consultation, and alignment with the Port Management Act 1995, this Ministerial Guideline and government policies, strategies and plans. Other aspects of the Port Development Strategy content, such as trade forecasts and the measure of economic impact, will remain largely a matter for the relevant port authority.
The final version of the Port Development Strategy must be submitted for the Minister for Ports and Freight’s consideration and acknowledgement. The Minister’s feedback on the Port Development Strategy is advice for the relevant port authority’s consideration, however the Port Development Strategy must be in accordance with the Port Management Act 1995 and this Ministerial Guideline. A Port Development Strategy is not a government instrument, or strategy, and as such does not involve approval by the Minister for Ports and Freight.
Format and Availability
Port Development Strategies are public documents and should be published in Portable Document Format. They are to be downloadable on the relevant port authority’s website and the relevant government department for ports website. After publication, the relevant port authority must proceed with a suitable planning scheme amendment to formalise the Port Development Strategy in appropriate planning tools.
Implementation, Monitoring and Evaluation
A Port Development Strategy should address implementation measures, at least at a high level. Where actions are nominated, they should be assigned a priority or timeframe, staging, and if required collaboration and cooperation from government and industry bodies. Implementation steps can be high level and do not need to detail financials and approvals required for delivery.
Ports Victoria’s role in Port Development Strategies
The Government has strengthened the oversight and coordinated planning of Victoria’s ports system through establishing Ports Victoria. They commenced operations on 01 July 2021 having been established under the Transport Integration Act 2010.
Ports Victoria’s charter has been expanded beyond the traditional functions of management and control of Victoria’s commercial port waters to make Ports Victoria a key advisor to the Minister for Ports and Freight and the Department of Transport and Planning, delivering technical advice on maritime operational matters and on the development of Victoria’s commercial port sector.
A key element of Ports Victoria’s new role is to work with the relevant port authority, as defined in the Port Management Act 1995, as it develops its Port Development Strategy to consider consistency between the ports from a statewide perspective on trade forecasts, key industry trends, and assessment of infrastructure requirements. This is in accordance with the objects and functions of Ports Victoria as detailed in the Transport Integration Act 2010.
Ports Victoria will also support the Department of Transport and Planning at each review and update of this Ministerial Guideline which sets out Port Development Strategy requirements.
The four commercial ports’ next Port Development Strategies are expected to be completed progressively over a timeframe to the end of 2025. The subsequent Port Development Strategies of the four commercial ports are expected to be completed around the same time and likely by the end of 2030. After all four ports’ Port Development Strategies are completed, Ports Victoria will prepare advice for the Minister for Ports and Freight which presents a summary of the status of the sector and its ability to continue to meet the needs of Victoria’s growing economy.
Ports Victoria’s expanded role will help the Victorian Government develop a system where Victoria’s ports complement each other and work together well as a system. In concert, the ports will provide the most efficient possible combination of capacity and capability to accommodate Victoria’s rapidly expanding trading requirements into the foreseeable future.
Involvement of Ports Victoria in Port Development Strategy preparation
The relevant port authority needs to consult with Ports Victoria at the Port Development Strategy scoping stage. This will allow Ports Victoria to provide commentary on alignment of the Port Development Strategy scope with the needs of the Victorian ports system and the intent of the Guideline.
Comprehensive stakeholder consultation is a critical part of Port Development Strategy preparation. Ports Victoria’s involvement throughout the relevant port authority’s Port Development Strategy preparation will ensure that the stakeholder engagement is robust and able to inform the Port Development Strategy.
The relevant port authority will consult with Ports Victoria as the Port Development Strategy progresses, and must share the penultimate draft prior to finalisation. This should be provided at least twelve weeks prior to the Port Development Strategy due date. This will allow Ports Victoria four weeks to provide advice to the department for the Minister for Ports and Freight’s consideration. This advice will be used as a basis to provide feedback to the relevant port authority by the department within four weeks of submission of the final Port Development Strategy.
Ports Victoria will provide advice and comments based on its review of the Port Development Strategy. Neither Ports Victoria nor the Minister for Ports and Freight have a role in approving a Port Development Strategy. A Port Development Strategy is used by government to enable better alignment of port related proposals and aids in developing government plans, policies and strategies.
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