Transport Challenges in Wellington Shire Presented by Ian Campbell Acting Manager Economic Development Wellington Shire Its Place in the world • Third largest local government area in Victoria • Broad based economy; agriculture/food, oil and gas, timber, RAAF base, tourism and services. • Population 41,000 Wellington Regional Profile • Bulk of Shire population within 30 minutes of Sale •Sale in turn is only 30 to 40 minutes by road from Traralgon and Bairnsdale • Significant business and population linkage • Over 3000 vehicle movements daily between Traralgon and Sale Sale • Junction of Princes Highway and South Gippsland Highway • South Gippsland Highway to Longford currently being raised above flood • Princes Highway duplication to Traralgon underway in sections. •Only 3 passenger trains per day compared with 18 to Traralgon Industry Offshore Oil and Gas • Turrum and Kipper Field development almost complete with anticipated 30 years of gas supply. •Increased use of West Sale Airport for helicopter transfer to gas platforms. • Next phase, building a gas conditioning plant at Longford will present some transport challenges in trucking large components by road up the South Gippsland Highway from the port. Industry Mining • Extensive reserves of Brown Coal in Wellington Shire. • Similar in size to Latrobe Valley •Exploitation of these reserves will require significantly improved transport infrastructure to port. • Coal seam gas also emerging as a potential industry with exploration currently underway. •Mineral sands another prospective industry in East Gippsland and Wellington. Industry Dairy • Dairy is a significant part of the Wellington Economy •Murray Goulburn at Maffra exports 100% of its dairy product. •Significant use of B Double tankers from farm to factories and refrigerated transport to warehousing and port. •At peak 4.5 million litres of milk to Leongatha, 2.2million litres to Maffra (60% of Wellington milk) •Maffra Tanker fleet travels 7,000 to 10,000 km per day impacting on roads. •Leongatha fleet 16,000 km per day. Industry Grain •Significant importing of grain, fodder and fertiliser from interstate and intrastate •Climate change may lead to dryer climate with potential for Gippsland grain growing for local dairy consumption, reducing inbound grain freight. Industry Horticulture • Increase in vegetable growing in scale and number of major companies both growing and processing. • Covino Farms and Mulgowie farming company both have significant processing capacity and currently truck produce nationally to customers. •BM Fresh expansion from Bacchus Marsh may be the first of several enterprises seeking water security to move to the Macalister Irrigation district. • As the value of water increases, horticulture will be the high value user. Industry Timber • State of the art timber mill at Heyfield (formerly known as Gunns) producing finished flooring, architraves etc • Hancock Plantation Victoria - significant tracts of plantation timber and tree nursery. •Timber mills at Yarram and Heyfield •Timber trucks also passing through from East Gippsland with timber won by tender •Impact of timber trucks on roads Major projects •RAAF Base East Sale redevelopment $170 million. 2013 to 2015 •Longford Gas Conditioning Plant $$$ Million commencing 2013 – requires transport of major components •Princes Highway and South Gippsland Highway works currently underway Emerging trends • Aging workforce •Aging population • Fly in Fly out workers for oil and gas projects. •Major project components being fabricated overseas then being moved from Port to site requiring widening works on roads and corners •Increased fuel cost. Opportunities •Increase number of trains passenger trains between Sale and Traralgon by stabling 3 at Sale rather than Traralgon. •Air5428 Military pilot training project to be tendered in 2012 for commencement in 2018. •Reconfigure school bus contracts to allow more public access to public transport. Opportunities •Currently no rail freight beyond Morwell. Potential freight to East Gippsland •Lack of passing loops on the Gippsland Line limits freight options •Upgrade rail lines and bridges for mining use.