Wellington - It’s place in the world

1. TRANSPORT CHALLENGES IN WELLINGTON SHIRE Bruce Graham Director Strategic Development14 August 2009

2. Wellington - It’s place in the world • Third largest local government area in Victoria – 11,000 ha • Broad based economy focused on agriculture/food, oil & gas, timber, RAAF base, tourism and service industries • Population of 41,000 - headquartered at Sale, Gippsland’s historical capital

3. Wellington Regional Profile • Striking range of physical features – 90 mile beach, Victorian high country, wetlands, built heritage • Bulk of population located within 30 minute drive from Sale • Southern sub regional centre centred on Yarram • Numerous small towns and localities – some quite isolated, pressure on Wellington Shire Council and community services • Traditional industries such as agriculture and timber producing more output – less employment. Significant growth in service sectors.

4. Wellington Regional Profile • Offshore oil and gas industry - major sector but oil projected to decline in the medium term • Large brown coal reserves – similar in size to the Latrobe Valley with clear potential for production of very large quantities of coal derivatives with large scale exports predicted • Agribusiness – climate change means there is potential for enhanced production and value-adding, based on comparatively reliable rainfall and irrigated land

5. Economic importance to the State • Produces 90% of Victoria’s State's gas requirements and supplies gas to NSW • 7% of State dairy production • 6% of State timber output plus major plantation forests supplying key regional manufacturers such as Australian Paper and Carter Holt Harvey • Expanding RAAF Base – East Sale • Emerging tourism industry focused on Gippsland Lakes, Victorian High Country and 90 Mile Beach

6. Major projects in progress: • Esso BHP Billiton Kipper oil and gasfield development - $1.1b • Macquarie Bank/Midway Timber Plantation expansions $300m (across central Gippsland) • RAAF Base East Sale – upgrading works: $80m • Hancock Victorian Plantations Forest Nursery, Gelliondale - $11m

7. Transport characteristics • Princes Highway East is the principal transport link into the major population centres. • Duplication of the Traralgon-Sale section continues to be a priority for Council. • South Gippsland and Hyland Highways provide access to the Yarram area and other centres in South Gippsland/Bass Coast Shires

8. Transport characteristics • Eastern railway to Bairnsdale – had highest level increase in passenger traffic in the State in 2008/09 but no freight beyond Morwell • West Sale Aerodrome provides a regional aviation facility including associated light industrial and offshore oil and gas service facilities • Wellington Shire has a large number of bridges on its network • 50 timber bridges replaced in recent years

9. Current transport policy challenges for Wellington - roads • National freight task expected to double over the next 15 years – significant energy related developments predicted for the Latrobe Valley and Wellington Shire • Monash Freeway is the single road artery into the Port of Melbourne and intrastate/interstate destinations – the State Government’s preferred East West Link yet to be financially prioritised by Infrastructure Australia • The outer eastern Melbourne suburbs of Casey and Cardinia are experiencing major population expansion, contributing to future traffic congestion • Wellington Shire’s road and bridge network is widely dispersed and requires continual reinvestment

10. Current transport policy challenges for Wellington - rail • Eastern line is a busy passenger corridor, but services very limited beyond Traralgon. Intra-region commuting hindered by lack of services. • Passenger traffic restricts available train paths for freight services – congestion in metropolitan area needs major infrastructure investment. 3rd rail line Caulfield-Dandenong shelved by State Government. • Significant rail-contestable freight available but requires State Government action to resource intermodal facility developments and support niche rail freight operators • Rail sector ideally placed to reduce long term pressure on the Princes Highway corridor for bulk and containerised products

11. Planning for the logistics of greenfields coal derivatives • Significant investor interest in processing brown coal for production of briquettes, fertilizer and liquid fuels – potentially in excess of 10m tonnes annually • Task requires provision for construction modules (South Gippsland port of Barry Point being investigated as import gateway) as well as finished products • State Government planning indicates Hastings likely to be the key medium/long term bulk export point – initial production could use Geelong • Hastings access will require major upgrading of the existing Gippsland railway plus a new line to Hastings and bulk loading facilities at the Port • A major transport planning and construction task for Victoria – represents the State’s largest ever logistics program

12. Conclusion • Wellington recognizes the importance of strategically planning future transport infrastructure needs • In particular, it should be stressed that locational circumstances outside the Gippsland region affect this region’s interests. • Wellington and the Gippsland Local Government Network look forward to working with SEATS to ensure the wider region receives its fair share of Government support, • based on well prepared arguments Thankyou