Premier Nathan Rees has announced that DP World has signed a new multi-million dollar lease for its operations at Port Botany which will secure jobs and provide a boost to the economy over the next 15 years.
Mr Rees says DP World is one of the biggest marine terminal operators in the world with its Port Botany lease dating back to 1979 and in 2008-09 they handled almost 800,000 TEUs (containers).
"Today’s agreement will see DP World continuing to operate at Port Botany until 2024 which is a major vote of confidence in the NSW economy," Mr Rees says.
"This is not only great news for the company’s 600 on-site workers but for the thousands of indirect jobs supported throughout the supply chain.
"This signing further confirms the NSW Government’s commitment to improving overall port efficiency."
Mr Rees says the lease includes incentives to improve truck servicing and rail performance which will ease congestion at the port and reduce truck movements on Sydney roads.
"This is the first time a lessee at Port Botany has contractually undertaken to meet performance standards not only in relation to its ship loading functions, but also in relation to road and rail servicing operations," he says.
"DP World’s preparedness to enter into such arrangements is a clear demonstration of its commitment to this shared goal."
Ports Minister Joe Tripodi welcomed the new lease which was signed by Sydney Ports Corporation CEO Grant Gilfillan and Senior Vice President and Managing Director for DP World’s Australia region, Jack Williams.
"The new lease forms an integral part of the Sydney Ports reform agenda and I’m delighted to be able to take this step with one of our key stakeholders," Mr Tripodi says.
"The new rental model for stevedore leases at Port Botany provides incentives for operators to improve their performance by way of lower rents."
Sydney Ports CEO Grant Gilfillan says DP World’s new lease includes a commitment to capital expenditure over its fifteen year life.
"These reforms will assist the NSW Government to achieve its policy objectives of increased competition and trade growth, greater investment in port facilities and a target of 40% rail mode share of containers to and from Port Botany," Mr Gilfillan says.
DP World Managing Director Jack Williams says the lease extension followed the signing of new, long term commitments for the company in Brisbane and Adelaide.
"DP World’s commitment to Port Botany ensures our customers will continue to have access to the most comprehensive ports network in the country.
"DP World offers a national stevedoring service across the five mainland capital city ports as well as access to DP World’s vast international port network. DP World regards Sydney as a key terminal in its expanding global portfolio.
"Importantly, DP World is delighted to renew its commitment to the NSW economy, where it provides key infrastructure and services for the state’s businesses, particularly exporters, and is a major employer," Mr Williams says.
Sydney Ports Corporation's Grant Gilfillan says the new rental model underpins the significant reforms being implemented through the Port Botany Landside Improvement Strategy which aims to introduce greater efficiency and productivity in the logistics chain.
"The new rental model not only applies to DP World, but will also apply to the operator of the new T3 Terminal," he says.
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