Transcript - Ports Australia conference

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As always, I begin by acknowledging the Muwinina People as the custodians of this land. We acknowledge and pay our respects to all Tasmanian Aboriginal Communities.

Tasmania is one of the most beautiful places in our nation and a fitting setting for the Ports Australia Conference.

We recognise the ongoing custodianship that Indigenous Australians have shown towards these lands and I extend this respect to all First Nations people joining us today.

Thank you as well to Mike for that kind introduction, and to Stewart, your Chair, thank you very much for the invitation and for all the work that you do throughout the course of the year.

It is wonderful to see so many public and private leaders from around the world come together.

I would also like to extend a particular welcome to the Minister for Infrastructure for the Kingdom of Tonga.

Like Australia, your nation relies on shipping. It is wonderful to have you here.

I also want to recognise Dr Patrick Verhoeven, the Managing Director of the International Association of Ports and Harbours, and Jens Meier, the CEO of Hamburg Port Authority, who have travelled such a long way.

Your presence underlines the inherently global nature of this industry, and I hope you enjoy your time here in our beautiful country.

This is in fact my second time in Tasmania in the last two weeks. 

Last week I was in the north, this week I’m in the south.

On both these visits, I have had the pleasure of engaging with Tasmania’s proud maritime industry.

Last week, I was in Burnie to commission the new shiploader – a project which replaced an essential piece of infrastructure that had been in place for five decades.

The new shiploader doubles the capacity of the old, and can serve ships up to Panamax size, creating local jobs and growing local industry.

It is a project that pays tribute to both the maritime past and future of this great state, as well as setting the local economy up for decades of success to come.

It also speaks to how essential maritime logistics are to our day-to-day lives.

At the port I could see woodchips going to China, as well as cars and supermarket produce coming into the state.

It is too easy to miss the magic that defines our modern world, but when you take even a moment to think about it, it is truly extraordinary. 

That port in Burnie on the north coast of Tasmania is connected to a global network that stretches to every corner of our planet. 

Everything that we rely on, relies in turn on shipping – which is why it is such a pleasure to be here today with some of the many, many hardworking people who underpin this essential industry.

Events like these are key to fostering a strong, robust sector – and year after year, Ports Australia does a wonderful job bringing you together and advocating for your industry.

I stand here today as a minister in a government that knows that ports are a primary driver of our economy and workforce. 

As well as facilitating international trade and the movement of goods throughout the region, our ports are strategic assets and critical infrastructure.

They are vital to sustaining our island nation. 

The most recent report from Ports Australia shows exactly this. 

Ports move an overwhelming 99 per cent of Australia’s international trade by volume, and importantly, over 694,000 local jobs are facilitated by Australia’s port activities. 

This works out to a staggering one in every 20 jobs across the nation. 

Container transport has seen a huge increase.

As have vehicle imports. 

The most recent numbers show that cruise ships have soared to 18% higher than pre-pandemic numbers.

You take our goods to the world, and you bring the world to us.

Of course, these numbers, while good news, bring pressures of their own. 

This story of growth underlines the need to ensure that our infrastructure, our investments and our policies are positioned to support a sustainable, reliable and productive supply chain. 

That’s why our government is making investments like those at the Port of Burnie, and it is also why my department led a review earlier this year into the national freight and supply chain strategy. 

In total, 71 submissions were received from a variety of stakeholders, including from maritime and associated peak bodies.

Of course, I acknowledge and thank Ports Australia for their submission and engagement throughout the Review process.  

The review found that while the foundations of the strategy remain strong, productivity, resilience, decarbonisation and data should be strengthened in the strategy and new National Action Plan.

We are already doing the work of refreshing the strategy and action plan to address the findings of the review, and I look forward to updating you further in due course.

But, of course, the findings of the review touch on challenges that are faced across our entire economy and society – none more so than the need to act to mitigate climate change. 

The Albanese Government is committed to reducing greenhouse gas emissions to 43% below 2005 levels by 2030 and to achieving net zero emissions by 2050. 

Achieving these ambitious economy-wide targets will require concerted action across all sectors, including this one. 

Right now, transport contributes 21 percent of Australia’s direct emissions. 

Adding to that challenge, transport is one of the hardest sectors to abate.

So, our work here is vital.

That is why we released the Transport Net Zero Roadmap for consultation earlier this year. 

While that roadmap covered all modes of transport, it was of particular importance for the maritime sector.

As we know, decarbonisation will rely on a combination of low carbon liquid fuels (LCLFs), hydrogen, electrification and efficiency improvements.

Of these, LCLFs offer the clearest pathway for decarbonisation within liquid fuel-reliant sectors that cannot readily electrify in the near-term. 

This includes maritime, aviation, heavy vehicle and rail, as well as mining, manufacturing and agricultural sectors.

The bad news is that we need a lot of liquid fuels, but the good news is that Australia is well-placed with comparative advantages in the production of LCLFs: 

• We have rich renewable energy resources; 
• We use advanced farming practices that embody low carbon emissions;  
• We are able to achieve economies of scale;
• We have significant refining and port infrastructure; 
• And we have the ability to both enable and encourage domestic fuel consumption, as well as support export capability.

As part of our Future Made in Australia agenda, the Government is fast-tracking support for an LCLF industry.

The government announced $18.5 million as part of the recent Budget, to support a domestic LCLF industry through the development of a certification scheme for those fuels.

And $1.7 billion over the next ten years will go towards a Future Made in Australia Innovation Fund.

This funding will be used in part to support nascent LCLF production technologies through research and development, to help de-risk developments, and to attract private sector investment.

And we will continue to work with industry on further steps as needed.

By successfully building a local LCLF industry we will increase fuel security, strengthen regional economies, diversify income streams for farmers, and meet our decarbonisation objectives – it’s hard to find a bigger win-win than that. 

To speak even more specifically to the challenges of this sector, we’ve created a Maritime Emission Reduction National Action Plan, the MERNAP for short.

The MERNAP aims to support Australia’s national emissions reduction targets, contribute to the global decarbonisation of shipping, and future-proof the Australian maritime sector to avoid costly and disruptive transitions later, ensuring an equitable transition, particularly for the maritime workforce, safeguarding jobs and skills for the future.

The vision is that by 2050, Australia will fully leverage the global maritime decarbonisation transition, benefiting our ports, vessels, and the broader energy sector. 

This will showcase Australia’s unique comparative advantages while supporting a fair and balanced transition for the industry.

The MERNAP Consultative Group has played a vital role in shaping this action plan, and I’d like to acknowledge those here today, including: Maritime Industry Australia Limited, the Maritime Union of Australia, and of course, Ports Australia.

To support the development of MERNAP, we undertook extensive public consultations that revealed to us that the future of the maritime sector will be powered by multiple energy sources, all of which will require new skills, and see us facing new challenges around technology readiness for alternative fuels. 

Safety, operational efficiencies, and strong partnerships across the value chain will be critical to driving this transition.

The Albanese Government remains committed to ensuring that Australia’s maritime industry is prepared for the future, ready to contribute to our national emissions targets, and able to thrive in a decarbonised global economy – including through initiatives like Green Shipping Corridors – partnering with nations, such as New Zealand, Singapore and South Korea. 

I have focused a lot on what fuels our maritime sector, but there is, of course, an even more important element – the people who run it.

I am proud to say that our plan to establish a Strategic Fleet is underway. 

This fleet will provide assistance in times of crisis, supply chain disruption, or natural disaster. And it will support industries reliant on shipping, such as heavy manufacturing.

Tenders to participate in the Strategic Fleet Pilot will close on 29 November. 

Through this process, three vessels that will be privately owned and commercially operated will be selected for the pilot. 

This is a major step towards fulfilling our commitment to establish a Strategic Fleet of up to twelve Australian flagged and crewed vessels. 

This will strengthen our sovereign maritime capabilities while supporting our maritime workforce. 

The creation of a strategic fleet is a central government policy that will shape our workforce for decades to come. 

I strongly encourage all interested parties to take part in this process and to consider what role they can play.

The tender process is being managed by my Department, which is seeking innovative tenders that will deliver the objectives of the Pilot Program. 

These include providing the Commonwealth with certainty of access to the strategic fleet, to move cargo in times of need, crisis or national emergency. And to support of the needs of Defence —including in training and logistical capacities.

The Albanese Government is seeking to have pilot vessels on the water as soon as possible.

While it is not a silver bullet to solve all of the issues of our current and emerging seafarer shortage, the Strategic Fleet and the work being undertaken by Industry Skills Australia through the Maritime Industry Workforce Plan, will support our maritime workforce by increasing the amount of Australian qualified seafarers at a time of a growing global shortage. 

The independent reviews of the Shipping Registration Act and the Coastal Trading Act being conducted by Ms Lynelle Briggs AO and Emeritus Professor Nicholas Gaskell will also contribute to the modernisation of Australia’s shipping regulatory framework, ensuring the Acts are fit for purpose and support the long-term sustainability of an Australian Maritime Strategic Fleet, and the maritime industry more broadly. 

Public consultation has commenced and I encourage you all to make your voices heard.

As you can see, there is a lot to do in your sector and we are a government that is determined to get on with doing it.

The reforms the Albanese Government is delivering will do our part to support a productive, resilient supply chain, while positioning Australia to thrive in the new net zero economy.

Thank you for having me, and all the best with the rest of your conference.

ENDS