Watco’s jointly owned Intermodal Group (IMG) recently helped hit a State Government target of moving 20% of containers on rail at Western Australia’s Fremantle Port. Congestion is becoming an issue in the city due to large truck numbers moving in and out of the port. To counteract this problem, the State Government introduced a subsidy for rail freight that moves through the Fremantle Port Authority’s (state government owned) North Quay Rail Terminal.
IMG’s focus on moving containers by rail helped achieve the State Government’s 20% target in 2018-2019. This is an increase from around 11% in 2009-2010, or, according to government calculations, the equivalent to removing 110,000 one-way truck trips. Moving this traffic to rail not only eases the congestion and improves road safety, it also reduces wear and tear on the city roads.
IMG operates two terminals served by our Watco Western Australia Rail Team. The Forrestfield Intermodal Terminal (FIT) and the North Quay Rail Terminal (NQRT) at Fremantle’s Inner Harbour. The NQRT achieved a record-breaking month, processing more than 14,300 containers for both import and export in July. This is the highest volume recorded by IMG since it commenced operations at NQRT in 2007. Container volumes at FIT were also at record levels in July, with more than 10,000 containers contributed to the shorthaul rail shuttle service.
“Attracting more container volumes onto rail is a key focus for IMG and will only be achieved with the continued support of our Customers and key stakeholders,” said Grant Thompson, IMG Chair and Watco Australia CEO. “As the current operator of NQRT and associated FIT, we are proud to work with our Customers to be an active contributor in attracting more freight on rail and reducing truck traffic on roads around Fremantle Port.”
Approximately 80 percent of the volumes currently received at NQRT are transported by IMG’s rail service from FIT. IMG is the exclusive operator of NQRT and has introduced efficiencies during the past 12 months that have resulted in regular triple daily return services between FIT and NQRT. The majority of the services have been export containers due to a strong grain season, but the team has focused on increasing the import containers as well, making full trips both in and out of the port.
Thompson said: “We have worked closely with our Customers to achieve record growth in container numbers through NQRT over the past 12 months. These outstanding volumes are the result of the current State Government’s support to encourage more freight on rail through the container port rail subsidy, strong demand for WA agricultural exports and initiatives implemented by IMG to attract and retain Customers on the port rail service.”
CBH Group was Watco’s first Customer in Australia and they are a part of the successes IMG has experienced at the Port. FIT sits right next to CBH’s Metro Grain Center and the team not only moves export grain containers, they also assist in packing the containers for CBH.
In addition, the recently announced IMG partnership with Qube Logistics has started to produce results, with container volumes beginning to transfer from road to rail. IMG is confident this partnership will result in more import and export container volumes moving on rail, which will underpin the growth required to achieve the State Government’s ultimate rail target of 30%.
IMG provides services seven days a week and has the ability to provide services around-the-clock if needed. Currently, there is not a consistent need, but IMG is flexible and willing to operate as Customer need demands. Right now, there are 20 IMG team members at NQRT, 47 IMG team members providing service at FIT.
“The excellent service provided by these team members and helping achieve the State Government’s 20% port rail freight target, has positioned IMG extremely well to continuing as the preferred operator at NQRT for another term,” said Thompson.