John Mullen, Asciano MD and CEO.

Patrick Stevedores, a division of Asciano, has signed an agreement for the development and expansion of its container terminal at Port Botany.

Once its development obligations are met, Patrick will increase its footprint at Port Botany by 39% through the development of an integrated container terminal which comprises both its existing container terminal and the adjoining 17.6 ha. site, called the Knuckle.

The new terminal will be designed to balance capacity across the quay line, the container stacking yard and the landside interface.

Plans for the new terminal will more than double Patrick's capacity to 2.5 million TEUs per annum and include an expansion of quay line to 1,400 m, with four berths capable of accommodating the new panamax vessels.

Once Patrick has met its development obligations, which include an agreed minimum amount of capital expenditure, Sydney Ports Corporation will grant a new long-term lease for the combined site, extending the lease term to the end of June 2043.

John Mullen, Asciano MD and CEO, says the development of the Knuckle and extension of the lease tenure to 2043 will more than double the TEU capacity and allow the company to lift productivity through the investment in new equipment and work practices.

"(The) announcement is the next step in the major expansion of Sydney Ports Corporation's container port facilities at Port Botany," says Grant Gilfillan, Sydney Ports Corporation CEO.

"As one of the largest port projects to be undertaken in Australia in the last 30 years, we look forward to working with Patrick to deliver increased capacity which caters for long-term trade growth."