Virus hits port trade

SHARP falls in the volume of imported fuel and exports of woodchips due to the worldwide impact of COVID-19 saw a drop in overall trade at GeelongPort last financial year.

However, the managers of the port remain confident of future growth with investments in major projects such as the Spirit of Tasmania Quay in the pipeline.

GeelongPort chief executive Brett Winter said current economic conditions continued to have an impact on consumer demand for some of the port’s most significant trades. “Over the past year, we saw a 35 per cent decrease in woodchip cargo and an 8 per cent decrease in liquid bulk cargo,” Mr Winter said.

“The recent April to June quarter saw 29 per cent less fuel coming through the port, compared to the same period last year.”

But general cargo, which includes cargo servicing the construction of Victorian wind farms, increased by 28 per cent and fertiliser trade by 22 per cent due to what is expected to be a bumper harvest season.

In total, the port handled 11,522,858 tonnes of cargo in 2019-20, down from a record 12,025,549 tonnes a year ago.

Viva Energy’s Geelong refinery has reined in production because of the impact of COVID-19 on domestic consumption and woodchip exporter Midway has been affected by the Chinese market not recovering as strongly as expected and the Japanese pulp and paper sector being affected by lockdowns in that country.

Mr Winter said the port was focused on pursuing growth opportunities that would aid the region’s economic recovery.

“It has been a challenging end to the financial year as we have been navigating our way through the impacts of COVID-19 and keeping our teams safe, while still focusing on delivering some major projects that will support the region’s recovery response,” he said.

These projects include TT-Line Company partnering with GeelongPort to relocate the Spirit of Tasmania vessels from Station Pier in Melbourne to Corio Quay South.

Currently in the planning phase, it is expected the proposed Spirit of Tasmania Quay will be operating in 2022.

However, if planning approvals can be streamlined to support a fast track of the construction program, the Spirit of Tasmania vessels can move to Geelong earlier.

GeelongPort is working with the industry to build an LNG import terminal at the refinery.

An LNG facility in Geelong is expected to deliver the most costeffective solution in response to Victoria’s gas and energy supply challenges.

It will also serve as an important injection into local jobs and the economy.

“We must leave no stone unturned in our pursuit of economic recovery post COVID-19 and the LNG project is an essential opportunity for the Geelong region and Victoria,” Mr Winter said.