Economic Significance of Seaports in Australia: A Comparative Analysis

This report provides a comprehensive overview of the importance of seaports in Australia, with a specific focus on the Ports of Brisbane and Melbourne. It explores the geographical locations, logistic functions, and services offered by each port, including import and export data, container throughput, and key commodities. The report also examines the regulatory environment and competition within the port industry, highlighting factors such as market power, potential competition, and buyer power. Furthermore, it discusses the role of seaports in supply chain arrangements and the impact of trade agreements on the Australian economy. The analysis covers the Port of Newcastle, its significance in trade, and the overall economic impact of seaports on Australia's GDP per capita and cost of living. The report concludes with insights into the choices of shippers and the benefits of efficient seaport operations.

Running head: THE IMPORTANCE OF SEAPORTS IN AUSTRALIA
The Importance of Seaports in Australia
Name of the Student
Name of the University
Author note

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Table of Contents
Point 1 (Introduction)......................................................................................................................2
1.2 Logistic functions and services..............................................................................................2
Point 2..............................................................................................................................................4
For the port of Brisbane...............................................................................................................4
For the port of Melbourne............................................................................................................5
Point 3..............................................................................................................................................8
Conclusion.....................................................................................................................................10

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Point 1 (Introduction)
1.1 Geographical Location
The seaport of the Brisbane is one of the fastest form of growing and dynamic form of
port in Australia. It is located approximately 20 kilometers to the east of Brisbane; the ports has
managed and have well developed by the Port of Brisbane Pty Ltd (PBPL), under a 99-year lease
from the Queensland Government.
On the contrary, the pot of Melbourne is situated on the coast or shore that contains one or more
harbors where the ships can dock and transfer their people from one point to the other (Mangan
and Lalwani, 2016). The port location is selected for the optimization of the access to the land
and navigates the materials from one place to the other.
1.2 Logistic functions and services
For the port of Brisbane, majority of the unpacked containers are imported containers for the port
or one of the eleven suburbs of Brisbane that lies within 40 kms of the port (Mangan and
Lalwani, 2016). Twenty-seven percent of the eight suburbs that are additional were distributed in
Brisbane, are geographically concentrated in the three major areas (East Brisbane, South
Brisbane and North Brisbane). Each of the areas has been directed to the arterial road network
connection of the Port. In the recent years, Brisbane has become the twelve most significant
(suburban) destinations for import containers each received more than 11,500 TEUs.
On the other hand, the total number of trade that are performed through the Sea Port of
Melbourne has vehemently declined by the asking rate of 0.2% over the previous mentioned
financial year to about 85.4 million revenue tonnes (35.0 million mass tonnes). The rate of
import of the overseas imports have declined to 0.8% to 36.5 million revenue tonnes while

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overseas exports increased 3.1% to 26.5 million revenue tonnes. The coastal form of the imports
have increased from 2.8% to 11.1 million revenue tonnes and the coastal form of exports
declined from 2.7% to 11.3 million revenue tonnes. The trade of the container have been
supported by the strong export performance where the total container have been throughput
increased by 0.8% to 2.53 million TEU as the volume of the container have rebounded in the
second half of the year. The rate of the full container exports have increased to 1.8% in the years
2013-14 that included the records of the monthly throughput of a 65,000 full international TEUs
in March (Mangan and Lalwani, 2016). The rate of the full container imports have been recorded
as the modest decline of 0.2% while the empty container movements have increased to 1.4% to
521,000 TEU. There are top ten form of the containerized commodity that exports the cereal
grains, miscellaneous manufactures, paperboards and fiberboards, fruit and vegetables, dairy
products, paper and newsprint, meat, beverages, pulp and wastepaper and stock feed. The top ten
containerised commodity imports to the miscellaneous manufactures, furniture, electrical
equipment, clothing, metal manufactures, machinery, paper and newsprint, fruit and vegetables,
miscellaneous food preparations and vehicle parts (Mangan and Lalwani, 2016) .
Point 2
For the port of Brisbane
There is a strong public interest that can be ensured in the ports of Queensland for the
There is a strong public interest for ensuring the ports of Queensland has to operate in an
efficient manner when there is fair and competent administration is provided (Mangan and
Lalwani, 2016). This is for the public interest that emerges from the major role that the ports play

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in logistics of the Queensland, as it acts as the gateways for the economic trade and the
commerce (Chang, Xu and Song, 2016). With the globalization of the world economy,
Queensland’s economic competitiveness is linked increasingly to its ability to manage the
movement of both import and export commodities efficiently and effectively.
Under the role of CIRA, there are several numbers of the specific approaches that have
been agreed for the facilitation of the competition of the objectives that are providing in the port
that are related to the infrastructures of the services of the faculty (Chang, Xu and Song, 2016).
Top have these approaches there are implications for these services there are needed to be
included in the several other form of the implementation of the services. These may have
included in the planning of the port that will eventually facilitate the entry of the various new
suppliers of the port that are related to the services of the infrastructure that were accessed by the
several third party and that needs to be provided for a complete form of the neutral basis.
The planning covers the approval on the several issues that includes the environment,
occupational health and safety, local planning and managing the interface with the broader
community. The facilitation of the approval of the process of planning for the infrastructural
investment have been expedited in few of the States that have provided a one-stop shop
approach. In the Queensland, the developing a project on the strategic port land and having it
declared as a ‘project of State significance have made the expedite for the process of approval.
For the port of Melbourne
There is an extent of the approximate amount of existing form of competition, the
standard assessments of the market power often initiates by looking at the several factors that
essentially includes the shares of the market. The previously mentioned step obviously logically

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follows the definition of the market exercise. Generally there is a port that are more likely to be
have been found at the powerful position in the market if they have the persistent form of has a
high market shares than if it does not. A number of factors hold importance for the consideration
that whether the ports that are located in the power of the market power includes the extent of the
existing form of competition and the threat of potential competition, and the proper degree of the
buyer power. The evolution of the different shares of the market is also a very relevant. However
with proper and necessary given time that is required for the alteration of the various
functionality of the infrastructure, the market shares are very much unlikely to have the proper
changes that are very much significantly in the short term, except for the unusual circumstances.
The level of competition is not the only factors that are necessary for determining the power of
the market. The potential level of competition has also an impactful effect. The threat of the
entry of the new ports can also help to constrain the varied behavior of existing ports. Barriers to
entry can be substantial, especially for ports that are integrated into networks and multi-layered
supply chains. The entry-level barriers are always substantial that holds its importance on the
networks that holds the multi layered form of the chains of supply.
The constraint on the power of the port market power from the potential competition is
actually very low, that are primarily owing to the significant form of economic barriers that are
limited to the entry relating to the scales of economy.
Apart from the minimal entry of the barriers, the major other factors that could have
been mitigated the power of the market is the power of the buyer. The competition law are often
in the flow to permit the defense that are against the findings of the market power if it can be
shown.

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In addition there are various hinterlands in the traffic, that the ports may be compete for
the transshipment traffic, whereby the larger forms of the vessels are used a port and transfer
their cargo to the smaller feeder vessels. These type of feeder vessels are then transported to the
cargo on to ports that serves the required hinterland. The major distinction between the
hinterland and the transshipment traffic is that the two ports that do not serve the same form of
hinterland may operate in same form of the geographic market with respect to the relevant goods
if they compete for the same transshipment traffic.
However, when it is seen that the competition have always concerns have risen, there has
been several remedies that are possible. However, there has been introduction to the competition
and the competition laws that are addressing the major concerns of the pricing. For instance, it is
a port where there is a relevant form of market where there are no scope for the level of the
dominance. There are ample scope for the divisibility that can be useful for competing the ports
from the entity that are owned on the stake of each of them and there are no options for reducing
the dominance of the each port (Cahoon, Pateman and Chen, 2013). There are various –port that
separate terminals that are useful for opening some of the separate form of ownership for the
terminals. This phenomenon requires the separated form of terminals for placing some of the
degree of the constraints that are competitive for each other, so they need to be very much able to
handle the same types of customers and commodities. For addressing some concerns that are
regarding the proper refusal to the supply, there are regulators that could have forced a port for
granting their access to the customers who are downstream customers (Cahoon, Pateman and
Chen, 2013).

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Point 3
In past few years, it has been seen that the shippers have been choosing those ports,
which are highly inspired by the arrangement of the supply change (Mangan and Lalwani, 2016).
There are general form of cargos that are have the recent benefits such as the reduction in the
handling of the cargos, the reduction in the possibility of the loss of damage for providing the
better form of protection and can essentially break the bulk of the cargo that have remained
essential for the future use.
The Port of the Newcastle is the most important trade that is economic for the residents of New
South Wales, which are particular for Hunter Valle, which will further situated to the north and
northwest part of the State; the port has the authority to the Newcastle Port Corporation (NPC)
(Singh, Chhetri and Padhaye, 2016) . It is one of the largest ports that is involved in the export
and import business that determines the total output of 90% coal (Singh, Chhetri and Padhaye,
2016). In this port, there are a large amount of the diversification that can be dedicated towards
the bulk commodities such as the grains, aluminum, machinery, heavy equipments, mining
materials and other projects of the industry. It has the largest number of the gas turbines that
have the excess amount of tones of containers that have arrived in the port (Mangan and
Lalwani, 2016).
The current GDP per capita observes that Australia is a very economical and powerful form of
country (Mangan and Lalwani, 2016). The cost of living in Australia is much lower than the

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other developed countries in the world (Mangan and Lalwani, 2016). From the different
hindrance, there has been a high amount of crisis in the economic structures that are observed in
the recent years have been contributed to the negotiation of the large amount of free trade
treaties, particularly in the countries of Asia. For exporting goods from US to Australia there
should be thus given priority to the people who wish to diversify with their different forms of
business in a consolidated form of market that have continuously grown (Bichou, 2014).
For getting out from the load of the full container is the best form of exporters that have been i9n
the volume of the shipping in at least six major forms of the standard pallets that are half of the
containers whose volumes are 20 foot and 40 foot in the will allow the transporters for the twelve
form of standardized pallets (Mangan and Lalwani, 2016). This method can produce the best
form of the exports and imports in the goods that cannot come in the contact with those of the
others.
The commercial form of port in Melbourne has been without any doubt to be the most essential
maritime hub of Australia. It apparently handles about 2.5 million containers yearly that
contribute to be about 36 percent of the commercial form of traffic for the country. With the
query that are over miles over the 34 form of berths that are roughly 10,000 vehicles that are
loaded and unloaded every day along with the different goods the various fo0rms of services. In
the last ten years, this port has alone received a million of dollars for the investments and the
infrastructures (Bichou, 2014).
The port of Brisbane is the third busiest ports of Australia that are growing faster day-by-day for
the containers of the port of the country. It has mainly managed to develop the Port of the
Brisbane Pvt. Ltd (PBPL). This port has 29 berths that are currently operating on the three very

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deep berths of water bulk water along with 17 water bulks and general forms of cargo berths
(Bichou, 2014). The yearly turnover of the port is the about 28 million tonnes of cargo and 2600
ships are going for the transportation processes. It also features the cruise ships for the wharves
of the port of Brisbane.
Conclusion
From the above discussion, it can be concluded that there are immense competition between the
two ports and both the ports are equally essential for the trading of the containers of Australia.
The two ports are the key factor of the increasing economy of the country.

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