Tasmanian Ports Corporation Annual Report 2023-24 - noting

Tuesday 1 April 2025

[11.31 a.m.]

Ms ARMITAGE (Launceston) - Before starting, I would like to point out to TasPorts it would be really great if they could put together an annual report that we could actually read, that the print was large enough. Even printing it up with my glasses on, I need the light on in my seat to try to read it. I am not sure whether there is a reason behind that, but it makes it very hard to read.

Mr PRESIDENT - It is all in the small print.

Ms O'Connor - The devil is in the detail.

Ms ARMITAGE - It is very hard to see the detail because the print is so small. I would hope that, perhaps, in their next annual report, they might make it so that we can actually read it - and I am hoping to find better news, particularly with regard to our Spirits. Anyway, this is about the annual report and certainly not about the Spirits.

I rise today to note the 2023-24 annual report of the Tasmanian Ports Corporation. It would be remiss to not acknowledge the significant issues which have been raised along the operations, management and governments of TasPorts, along with the TT-Line and the purchase of the new Spirit of Tasmania vessels. To this end, I think it is really important to have a good look at what this annual report tells us about the state of the company, its financial position, and its outlook.

In the report, the chairman's note starts with

TasPorts has continued its strong financial performance with a consolidated net profit of $18.1 million, delivering another record dividend to its shareholders, the Tasmanian Government, up from $14.2 million the previous year. [okay]

Ms Rattray - You would not sell that cash cow, would you?

Ms ARMITAGE - Well, you would not think so. I would have liked to think that, rather than try to make as much money as they possibly can, they might have looked at perhaps some infrastructure that was desperately needed, to save us money on a different issue which is not part of my contribution today.

Enhanced revenue of $180 million against $168 million (FY2023) allows TasPorts to continue to modernise and de-risk its port infrastructure, as well as invest in intergenerational port upgrades, increasing technology and capacity to better facilitate trade across Tasmania.

I will leave that part there for the moment, but I think these comments are worth reflecting on. I will return to it a little later.

I will turn now to the company snapshot. In a few brief statistics, we can get a real sense of the performance of TasPorts during the 2023-24 financial year: 14.2 million tonnes were transited, with 633,177 20‑foot equivalent units, or TEUs, transited - up by 3.5 per cent. 312,991 TEUs were exported and 320,186 TEUs were imported. The top three commodities were 2.78 million tonnes of woodchips.

A member - Shame.

Ms ARMITAGE - There were 2.09 million tonnes of general cargo and 1.12 million tonnes of cement. There were 2630 vessel visits, 144 cruise visits - up 14.2 per cent - 225,000 cruise passengers - up by 32.3 per cent - and 97,000 cruise crew. There were 8.86 million tonnes exported, 5.33 million tonnes imported, 3758 commercial flights and 121,880 commercial passengers.

TasPorts operates ports across the state. The report notes that the key ports of Bell Bay, Burnie and Devonport continue to host the majority of all commodities transited, with a combined total of 12.4 million tonnes, which comprised 87 per cent of total tonnes for the financial year.

The Port of Devonport managed 50 per cent of total TEU during the financial year and the Port of Burnie managed 43 per cent of the total TEU. The remaining 7 per cent was managed between all other ports throughout the network. It is clear TasPorts needs to focus on allocating resources and providing upgrades and maintenance for TasPorts to effectively contribute to Tasmania's economy by way of good operations of our ports. Considering how significantly the north-west factors in the operations of TasPorts, I find it really interesting that out of the five current board members of TasPorts, one comes from the south, one from the north, three from interstate and absolutely zero based in the north-west. Perhaps in light of the Premier's recent policy announcement that 50 per cent of board members at a minimum be from Tasmania, this would affect the TasPorts board significantly on these current numbers, and I think it is especially urgent that at least one or two board members from the state's north-west should be sourced as soon as practicable.

Forest products, mining, industrial materials and manufacturing items and fuels comprise huge elements of trade which occurs through ports managed by TasPorts. These are implements which keep our economy robust and contribute to our state's position as a good trading partner with other states and internationally. They are vital components for keeping people in Tasmania employed and are a key part of the chain which keeps our economy ticking along. In addition to freight, cruises and the tourism sector, we rely on the vital assets which are owned, operated and maintained by TasPorts.

As I mentioned earlier, during the financial year cruise ship visits excluding expedition crews experienced growth of 14 per cent with 144 visits to ports around Tasmania's multi-port system against 126 visits in the previous financial year. The report states that the increased volume of cruise bookings during the financial year was largely attributable to the introduction of two new cruise lines, Virgin Voyages and Disney Cruise, into the Australian market, both of which featured a significant Tasmanian deployment in their inaugural season in that region. Additionally, the port of Hobart recorded the highest activity with 83 visits. The port of Burnie followed with 33 visits and Port Arthur as a regional destination experienced 19 visits.

It is clear that the tourism and cruise sector is a growing one and that Tasmania ought to be in a position to continue receiving the benefits of more visitors through our ports and have the infrastructure in place to support that. Again, these are important statistics and are worthy of reflection when we think about how Tasmania should be able to take advantage of these benefits where the proper assets and infrastructure are in place. Asset management is stated by the report to be something which TasPorts significantly invests in, with investment through a 30-year strategic asset management program alongside a commitment to the delivery of new infrastructure.

The report goes on to state that, since 2019, TasPorts' operational and capital expenditure program has seen investment of more than $265 million across our ports, including more than $63 million invested into wharf assets around the state. It continues:

The clear maturity in the organisation's management of assets is the result of the 30-year strategic asset management program focused on growing the organisation's level of investment, improving asset condition and maintaining a strong financial position to allow the prudent and responsible management of Tasmania's multi-port system. In doing so, TasPorts is unlocking potential for our customers, commodities and the Tasmanian economy.

At the risk of becoming repetitive, I think comments like these in the TasPorts annual report are seriously worth reflecting on.

The financial year for TasPorts also saw a number of growth projects progress. These include the port of Bell Bay, where TasPorts continued discussions with numerous interested parties to support energy-generating projects such as wind farms and solar farms, transitional industries and projects, hydrogen and alternative fuels and associated export opportunities for that region of the state.

In January 2024, TasPorts became a partner in the Tasmanian government's Green Hydrogen Hub project, where TasPorts will be planning for the infrastructure necessary for operations to commence unlocking the potential for large-scale hydrogen export. This is a hugely exciting venture for the region, and I do have sincere hopes that it all progresses to provide opportunities for our state and, in particular, for that region and the employment opportunities that it could unlock there.

The Burnie Gateway project of the port of Burnie is another growth project worthy of discussion. This gateway project was developed to support significant trade and economic benefits for the state, enabling capacity for larger vessels to berth and ensuring fit-for-purpose infrastructure. The report states that TasPorts has progressed planning for its Burnie Gateway vision, which incorporates the development of a staged program of works to support sustainable and optimised growth for the Port of Burnie.

TasPorts states that it has continued to refine the scope and planned delivery of this vision, which was supported by further customer engagement, commercial and financial assessments and reviews of site conditions and existing infrastructure. This is planned to be a continued project by TasPorts, with completion estimated for the 2025 financial year.

The Port of Hobart Macquarie Wharf Redevelopment Project is another growth project discussed in the annual report. TasPorts states that it is committed to its vision to position Tasmania's capital city as an international gateway to the Southern Ocean while enabling growth in well‑established key trade areas over a 30‑year horizon.

This redevelopment is slated to deliver bespoke infrastructure to the Australian Antarctic Program's icebreaker, RSV Nuyina, at Wharf 6.

The program will also deliver upgrades at Wharf 4 and Wharf 5 to enable the growth of Tasmania's key cruise tourism sector, support international research programs and defence operations, and facilitate improved port solutions for other established industries.

It looks like they are doing so well. It is just a shame that one berth seems to have been overlooked.

It is clear that TasPorts sees and understands the needs of our state to leverage our position, both geographical and financial, to make the most of the opportunities that are uniquely afforded to us. To this end, it is wise to ensure that upgrading these assets, progressing visions for future use and the maintenance of Tasports infrastructure be prioritised and that significant contributions to Tasmania's economy remain front and centre. We are an island state after all, and we rely on our ports significantly.

I think it is also worth taking a look at the other aspects of TasPorts' operations, including its workforce and international operations.

I note that in the Investing in Our Future part of the annual report, the organisation takes a focus on its people, infrastructure and technology, environmental stewardship, energy and climate and community.

Given the nature of port operations, a focus on work health and safety is vital. I am pleased to see a fatality risk management strategy has been devised to provide a robust and consistent approach, helping ensure the necessary critical controls are in place to prevent fatalities and serious injury.

Moreover, a commitment to psychosocial safety is outlined as a priority for TasPorts, which included a collaboration between TasPorts and the Menzies Institute to develop a case study called Preventing Harm to Employee Mental Health through Psychosocial Risk Assessment and Control.

Healthy employees are productive employees and health includes a focus on mental health, so it is good to see this is a priority for TasPorts.

I do note further some interesting statistics of 311 total employees full‑time, part‑time and casual, 246 are men and 65 are women. This is across marine operations professional and support staff. Only four operations staff are women compared to 78 men and five marine staff are women alongside 97 who are men.

I do not necessarily have any commentary on the statistics, but I do find them very interesting.

Given the reliance that any industry has on technology, it is, of course, good to see that TasPorts continues investment in digital strategies and cybersecurity. The Digital Strategy Road Map is stated by TasPorts to help sustain and grow operations and has been developed with broad consultation and input across the organisation.

Ongoing commitment to cybersecurity really speaks for itself. Any and all threats to cybersecurity need to be mitigated and our organisations need to plan and resource to fight these threats accordingly.

Environmental stewardship relates to the organisation's work towards remediation work, habitat restoration and future carbon offsets. One example of this during the reporting year was that TasPorts commenced a three‑year environmental plantings pilot project to remediate areas within the Port of Bell Bay, the Port of Burnie, Port of Devonport, Devonport Airport, Port of Stanley and the Tamar Cut and Garden Island in the Tamar catchment and partnership with the Tamar NRM; certainly a good initiative to see.

With regards to energy and the climate, Tasports continues to work towards net zero, accounting for carbon emissions and resilience planning and adaptation. These include taking climate risk assessments with modern, up‑to‑date standards and intelligence and requires ongoing commitment for robustly implementing best standards with regard to TasPorts' infrastructure and assets.

TasPorts has looked at its relationships with the community. These include partnerships with local organisations like Surf Lifesaving Tasmania, Seafood Industry Council Tasmania, the Maritime Museum of Tasmania, participating in the Derwent Estuary Program and Tamar Estuary-Esk River Program. Additionally, sponsorship of almost $100,000 as well as in kind support to 27 organisations during the financial year occurred.

TasPorts took on a new graduate program in collaboration with the University of Tasmania and partnered in some significant state events including the Rolex Sydney Hobart Yacht Race, Taste of Summer and Dark MOFO. I am only referring, obviously, to the annual report. I have decided not to stray into areas not included in the annual report. What I would say is while they have made a very good profit and from all accounts, from reading the report, done an excellent job, I find it quite regrettable that some areas, obviously, have been overlooked, which as we have stated previously and it is well known will cost our state a considerable amount. While we have made over $18 million, unfortunately, the management of some areas has been overlooked and I find it regrettable, but I do note the report.