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First published in 1891<br />

First published in 1891<br />

July 2018<br />

thedcn.com.au<br />

The voice of Australian shipping & maritime logistics<br />

Coastal<br />

revival<br />

Why the cause of coastal<br />

shipping is not lost<br />

34 RoRo business on<br />

a serious roll<br />

40 Key developments<br />

in port technology<br />

46 Major logistics and<br />

supply chain projects


Celebrating 25 years of<br />

connecting Australia<br />

to the world


Thank you to all our customers and<br />

business partners for your continued<br />

support over the years. We couldn’t<br />

have done it without you!<br />

www.maerskline.com


First published in 1891<br />

XXXXX<br />

Contents<br />

28<br />

34<br />

40<br />

FEATURES<br />

28<br />

34<br />

40<br />

46<br />

Coastal shipping<br />

Two captains are going where others dare not: they plan on<br />

establishing a coastal service for the coast of Queensland<br />

Ro-Ro & car carriers<br />

Demand for car carrier services is on the rise in Australia<br />

Port & container equipment<br />

Technology sharing is key to waterfront efficiency<br />

Logistics & supply chain<br />

Big projects are changing the supply chain in the north-west<br />

COLUMNS<br />

8 A word from the minister<br />

Deputy PM McCormack writes<br />

about supply chain efficiency<br />

16 Trade minister comment<br />

Steven Ciobo on the TPP<br />

19 DAWR perspective<br />

Deputy Secretary O’Connell<br />

discusses the Biosecurity Act<br />

20 Women in maritime<br />

Diversity is not just filling quotas<br />

22 The broker’s view<br />

CBFCA on key topics<br />

25 Industry opinion<br />

FTA discusses Biosecurity Levy<br />

26 Future generations<br />

YSAL analyses the future of the<br />

shipping industry<br />

52 Currency & trade<br />

Paul Bettany discusses<br />

international trade and Trump<br />

46<br />

54 Infographics<br />

Winter harvest looks smaller<br />

56 Trade & the law<br />

Time to modernise practices<br />

58 Workplace relations<br />

Chris Gianatti discusses legal<br />

issues surrounding picketing<br />

66 The Grill<br />

Kelly McGinty gets grilled on<br />

movies, WiLAT and more<br />

4 July 2018<br />

thedcn.com.au


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NORTHERN NORTHERN EXPRESS EXPRESS<br />

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hanghai i and Kaohsiung and Kaohsiung<br />

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Sydney (Sat) Sydney (Sat) 14 16 14 18 16 20 18 23 20 25 23 DP 25 World DP Sydney Thu World 1400 (Sat) Thu 140014 16 18 20 23 25 DP World Sydney Thu (Sat) 1400 Sydney 14<br />

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From/To (Days)* From/To (Days)*<br />

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Terminal From/To CY Cutoff (Days)* CY Cutoff<br />

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Terminal From/To CY Cutoff (Days)*<br />

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• Large reefer • Large capacity reefer capacity<br />

Pusan (Wed) Pusan (Wed) 20 20 23 23 26 26 DPCT DPCT Pusan Mon 1700 (Wed) Mon 1700 20 23 26 DPCT Pusan Mon (Wed) 1700 Pusan 20 (<br />

Qingdao (Fri) Qingdao (Fri) 18 18 21 21 24 24 QQCT QQCT Qingdao Thu 0800(Fri) Thu 0800 18 21 24 QQCT Qingdao Thu 0800 (Fri) Qingda 18<br />

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Kaohsiung (Thu) Kaohsiung (Thu) 12 12 15 15 18 18 KAOCT KAOCT Kaohsiung Tue 1700 (Thu) Tue 1700 12 15 18 KAOCT Kaohsiung Tue 1700 (Thu) Kaohsiu 12<br />

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CENTRAL CENTRAL EXPRESS EXPRESS<br />

CENTRAL EXPRESS<br />

CENTRAL EXPRESS CENTRAL EXPRESS<br />

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Melbourne (Tue) Melbourne (Tue) 16 16 18 18 DP World DP Melbourne Sat World 2200 (Tue) Sat 2200 16 18 DP World Melbourne Sat 2200 (Tue)<br />

Brisbane (Sun) Brisbane (Sun) 11 11 13 13 DP World DP Brisbane Fri World 1400(Sun) Fri 1400 11 13 DP World Brisbane Fri 1400 (Sun)<br />

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Sydn<br />

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East Coast Australia East Coast Australia<br />

Shanghai<br />

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SOUTHERN SOUTHERN EXPRESS EXPRESS<br />

SOUTHERN EXPRESS<br />

SOUTHERN SOUTHERN EXPRESS EXPRESS<br />

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Terminal From/To CY Cutoff (Days)* CY Cutoff Arrive<br />

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From/To CY Cutoff (Days)*<br />

Sydney (Mon) Sydney (Mon) 17 17 18 18 20 20 21 Hutchison 21 Hutchison Sydney Fri 1400 (Mon) Fri 1400 17 18 20 21 Hutchison Sydney Fri (Mon) 1400 Sydney 17<br />

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From/To (Days)* From/To (Days)*<br />

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Arrive: Arrive: Sat Tue<br />

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Brisbane<br />

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Terminal<br />

From/To CY Cutoff (Days)*<br />

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Xiamen (Sat) Xiamen (Sat) 14 14 17 17 22 22 Oceangate Oceangate Xiamen Thu 1200 (Sat) Thu 1200 14 17 22 Oceangate Xiamen Thu (Sat) 1200 Xiamen 14<br />

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Australia Australia Asia<br />

Australia Asia Asia<br />

Australia<br />

Qingdao 86 532 8577 867100<br />

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First published in 1891<br />

a serious ro l<br />

First published in 1891<br />

July 2018<br />

thedcn.com.au<br />

EDITORIAL<br />

From the editor<br />

First published in 1891<br />

First published in<br />

Welcome to your new-look Daily Cargo News.<br />

We believe the new magazine format provides an ideal<br />

combination of news, in-depth features and analysis.<br />

I’m delighted to mark our first magazine edition with a<br />

feature close to readers’ hearts: that of coastal shipping.<br />

In this edition, we profile a couple of intrepid mariners<br />

willing to stick out their necks and have a go at establishing<br />

a service for the Queensland coast. Past experience suggests<br />

it would be foolish to make extravagant predictions, but as a<br />

champion of maritime freight and logistics we wish them well.<br />

You only need to go for a drive through our major capital<br />

cities to see that many of our major roads are struggling to<br />

handle commuter traffic and heavy vehicles, and alternatives<br />

are badly needed. The ‘blue highway’ is something which<br />

should form part of freight task planning. Coastal shipping<br />

truly requires a fresh start.<br />

On a different note, thanks to all our readers as we also<br />

enter a new era. We look forward to bringing you full coverage<br />

of shipping and maritime logistics.<br />

First published in 1891<br />

July 2018<br />

ISSUE NUMBER 1236<br />

Publisher<br />

Lloyd O’Harte lloyd.oharte@thedcn.com.au<br />

Editor<br />

David Sexton david.sexton@thedcn.com.au<br />

Journalists<br />

Ian Ackerman ian.ackerman@thedcn.com.au<br />

Paula Wallace editorial@thedcn.com.au<br />

Creative Director Lee McLachlan<br />

Production Manager<br />

Grant Lopez grant.lopez@thedcn.com.au<br />

Electronic Services<br />

Linda Saleh, Oliver Buzzi<br />

Advertising Sales Director<br />

Lindsay Reed lindsay.reed@thedcn.com.au<br />

Tel: 0431 956 645<br />

Subscription Manager<br />

Amy O’Rourke amy.orourke@thedcn.com.au<br />

Tel: 02 9126 9713<br />

David Sexton<br />

Editor, Daily Cargo News<br />

The voice of Australian shipping & maritime logistics<br />

First published in 1891<br />

Coastal<br />

revival<br />

Why the cause of coastal<br />

shipping is not lost<br />

First published in 1891<br />

Publisher’s note<br />

34 RoRo business on<br />

40 Key developments<br />

in port technology<br />

46 Major logistics and<br />

supply chain projects<br />

<strong>DCN0718</strong>_Cover.indd 1 29-Jun-18 9:14:08 PM<br />

COVER IMAGE<br />

Brisbane River<br />

by Mike Nash<br />

6<br />

Today marks the beginning of an important next stage in the<br />

life of DCN and we are thrilled to bring you the publication<br />

in this new-look style and layout. This move is a continuation<br />

of our history of embracing change and evolution and, in<br />

tandem with our daily online news service, it will enable us<br />

to provide far superior content, coverage and deeper analysis<br />

of all the important issues facing the shipping and maritime<br />

logistics industry.<br />

Remember to save the date – Thursday 22 November – for<br />

this year’s annual Shipping & Maritime Industry Awards,<br />

where we are introducing a number of initiatives including a<br />

new Women in Shipping & Maritime Logistics Award and a<br />

new Gender Diversity Award. We are also pleased to formally<br />

announce and welcome our Major Host Sponsor, NSW Ports.<br />

On behalf of the DCN team, we highly appreciate the<br />

continued support of our readers and advertisers and, in our<br />

new livery, we look forward to continuing to bring you leadingedge<br />

and thought-provoking news, analysis and commentary.<br />

We hope you enjoy this new chapter in DCN’s evolution.<br />

Lloyd O’Harte<br />

Publisher, Daily Cargo News<br />

July 2018<br />

Published by<br />

PARAGON MEDIA PTY LIMITED<br />

ABN: 49 097 087 860<br />

PO Box 81, St Leonards, NSW 1590<br />

Tel: +61 2 9126 9709<br />

CEO<br />

Ian Brooks ianb@paragonmedia.com.au<br />

www.thedcn.com.au<br />

The Daily Cargo News is available to interested<br />

parties throughout Australia and overseas via<br />

subscription.<br />

For enquires please call 02 9126 9713.<br />

The publisher welcomes editorial contributions<br />

from interested parties, however, the publisher<br />

and Paragon Media accept no responsibility for<br />

the content of these contributions and the views<br />

contained therein are not necessarily those of<br />

the publisher or of Paragon Media. The publisher<br />

and Paragon Media do not accept responsibility<br />

for any claims made by advertisers.<br />

Unless explicitly stated otherwise in writing, by<br />

providing editorial material to Paragon Media,<br />

including text and images, you are providing<br />

permission for that material to be subsequently<br />

used by Paragon Media, whole or in part, edited<br />

or unchanged, alone or in combination with<br />

other material in any publication or format<br />

in print or online or howsoever distributed,<br />

whether produced by Paragon Media and its<br />

agents and associates or another party to<br />

whom Paragon Media has provided permission.<br />

thedcn.com.au


People look to us when they think<br />

towage in Australia, we are here for<br />

something that is bigger than ourselves<br />

svitzer.com.au


WORD FROM THE MINISTER<br />

Freight: driving productivity<br />

in Australia<br />

Michael McCormack, deputy prime minister and minister for infrastructure and<br />

transport, discusses how to bring about a more efficient supply chain<br />

ONE OF THE GREATEST PRODUCTIVITY<br />

problems facing the nation is creating<br />

an efficient, safe, secure and sustainable<br />

freight transport system which isn’t<br />

impeded by movement across borders<br />

and through regions and cities by<br />

different transport modes.<br />

Having lived my whole life in regional<br />

Australia, the link between good<br />

infrastructure and economic growth is<br />

ingrained in my thinking.<br />

The freight and supply chain logistics<br />

industry is an essential component of the<br />

Australian economy, accounting for up<br />

to 10% of our gross domestic product.<br />

Whether you live in a city or in the<br />

regions, all Australians rely on efficient<br />

and reliable freight movement.<br />

The Liberal and Nationals’ 2018-19<br />

Budget included major steps to improve<br />

freight productivity. This included<br />

our new $3.5bn Roads of Strategic<br />

Importance initiative to fund upgrades<br />

to key freight routes and a targeted new<br />

$1bn Urban Congestion Fund, addressing<br />

pinch points and last-mile access to<br />

ports, airports and freight hubs.<br />

There were also commitments of $400m<br />

for the Port Botany Rail Line duplication<br />

and $971m for the Coffs Harbour Bypass,<br />

both of which are strategic investments in<br />

the productivity, efficiency and safety of<br />

the freight industry.<br />

Inland Rail, a 1700km “corridor<br />

of commerce”, is an important part<br />

of the national supply chain, and the<br />

government has put some serious<br />

momentum into making it happen.<br />

When complete, it will reduce freight<br />

transport costs between Melbourne and<br />

Brisbane, improve service standards and<br />

move some freight transport off the<br />

congested road network.<br />

We know there is scope for more<br />

domestic freight to be moved by ship.<br />

Between 2010 and 2030, Australia’s<br />

overall freight task is expected to grow<br />

by about 80%. Coastal shipping, by<br />

contrast, is only forecast to grow by<br />

around 15% in the period to 2030.<br />

The current regulation of coastal<br />

shipping creates a range of administrative<br />

issues for shipping companies and<br />

Australian businesses that use coastal<br />

shipping, resulting in a substantial<br />

regulatory burden.<br />

Our Coastal Trading (Revitalising<br />

Australian Shipping) Amendment Bill<br />

2017 aims to give industry more choice<br />

and flexibility in how it moves freight<br />

around the country, while at the same<br />

time reducing red tape.<br />

As with all other industries, the<br />

freight industry is feeling the heat of<br />

international competition and fast-paced<br />

technological change. Australia cannot<br />

afford to be complacent in relation<br />

The current regulation of coastal shipping creates a<br />

range of administrative issues for shipping companies<br />

and Australian businesses that use coastal shipping<br />

to freight and the physical and social<br />

infrastructure which delivers it. Failure<br />

to act will lead to loss of market share<br />

and an increase to the cost of goods.<br />

Governments play a central role in<br />

the long-term planning, provision and<br />

management of the transport networks,<br />

but I freely admit government doesn’t<br />

have all the ideas, funding, or know-how<br />

– no government does. We are acutely<br />

aware though the pace of change is now<br />

so rapid it requires increasingly dynamic<br />

and responsive government.<br />

Above: Michael McCormack, deputy prime<br />

minister, minister for infrastructure and<br />

transport, leader of the Nationals<br />

Businesses and governments will need<br />

to embrace new thinking and adopt new<br />

technologies to make what is already<br />

in place work better, and capture new<br />

opportunities to meet the challenges of<br />

the growing freight task.<br />

The government has heard the strong<br />

message of support for an overarching<br />

national strategy that will address the<br />

needs of all sectors of the freight and<br />

logistics industry and the users of freight<br />

services. To ensure we cater to these<br />

ongoing challenges, we are committed to<br />

developing a National Freight and Supply<br />

Chain Strategy.<br />

In May, I released the final report of<br />

the industry-led Inquiry into National<br />

Freight and Supply Chain containing<br />

priority actions, which will be vital input<br />

into the development of a National<br />

Freight and Supply Chain Strategy.<br />

I look forward to ongoing industry<br />

engagement as we work with the states<br />

and territories to develop a strategy which<br />

ensures an efficient, safe, secure and<br />

sustainable freight transport system to<br />

meet the needs of a growing Australia.<br />

Office of the minister<br />

8<br />

First published in 1891<br />

July 2018<br />

thedcn.com.au


News in brief<br />

Full details at thedcn.com.au<br />

Department issues live<br />

export licence suspension<br />

Emanuel Exports was named as the company that lost its live export licence<br />

A Company dealing in live exports has had<br />

its license suspended by the Department<br />

of Agriculture and Water Resources.<br />

The name of the company has not<br />

been released, however Fairfax,<br />

the ABC and The Guardian<br />

are all reporting it is<br />

Emanuel Exports,<br />

understood to be<br />

the nation’s largest<br />

exporter of sheep.<br />

In a statement<br />

released by the<br />

Department, it said the<br />

licence would remain<br />

suspended “pending a<br />

review of the company’s<br />

response to a show cause notice”.<br />

“The laws that regulate the export<br />

of livestock include strict requirements<br />

to ensure the health and welfare of<br />

animals. It is the responsibility of<br />

each exporter to ensure it meets those<br />

obligations,” the Department stated.<br />

“The Department takes those<br />

responsibilities very seriously.”<br />

According to the<br />

statement, it was<br />

inappropriate for<br />

the Department<br />

to provide<br />

information while<br />

the investigation was<br />

ongoing.<br />

Further information<br />

is expected to be released<br />

after a review.<br />

Emanuel Exports was the liveexport<br />

company that stocked the vessel<br />

Awassi Express, a ship on which 2400<br />

animals died last year in conditions of<br />

extreme heat on a voyage.<br />

Footage from the voyage, broadcast<br />

by 60 Minutes, generated outrage when<br />

witnessed by Australian viewers earlier in<br />

the year.<br />

The topic of live exports exploded in<br />

early April when 60 Minutes broadcast<br />

images and footage of sheep on board<br />

the Awassi Express that were clearly in<br />

terrible distress.<br />

Since that time Mr Littleproud has<br />

been fighting something of a rearguard<br />

action to defend the live export<br />

sector, even as criticisms arose not only<br />

from activists but from government<br />

backbenchers.<br />

Liberal MP Sussan Ley introduced a<br />

bill to ban the live sheep trade back in<br />

May this year.<br />

Coode Road closure confirmed<br />

A partial closure has taken effect ahead of a full closure to through-traffic in August<br />

A closure of Coode Road West has begun, Port of Melbourne<br />

and DP World Australia have confirmed.<br />

In a joint statement, the Port and the stevedore said the move<br />

was necessary in order to handle a burgeoning freight task.<br />

The closure of Coode Road West is to take place in two stages:<br />

From Monday 18 June, Coode Road West was to be reduced<br />

to one through-lane, with work site barriers and traffic<br />

management to facilitate construction.<br />

From Monday 13 August, Coode Road West will be closed to<br />

through traffic (between Dock Link Road and Mackenzie Road).<br />

From August 13 access to Mackenzie Road initially is to be from<br />

Dynon Road, Footscray Road and the Sims Street loops with<br />

ramps to and from the West Gate Tunnel to provide additional<br />

connections to Mackenzie Road in the longer term.<br />

“With the Port of Melbourne expected to handle up to 12m<br />

TEU by 2065, there is a need to develop and configure the<br />

port to accommodate this expected future growth,” the joint<br />

statement read.<br />

“The closure of Coode Road West will create additional<br />

truck marshalling capacity, increase gate capacity and be the<br />

first step in creating an integrated multi-modal terminal with<br />

increased yard capacity at DP World Australia’s Melbourne<br />

Terminal.”<br />

Supporters believe the integration of Coode Road West<br />

into DPWA’s terminal will help provide greater efficiencies and<br />

cost-competitiveness to Victoria’s freight and logistics industry,<br />

while cutting the impact of port transport congestion on<br />

industry, the environment and the broader community.<br />

Nonetheless, plans to close the road have attracted<br />

opposition from those in the transport sector.<br />

Give us your views. Is this the right decision? Email us at:<br />

editorial@paragonmedia.com.au or post a comment.<br />

Cosca<br />

10<br />

First published in 1891<br />

July 2018 thedcn.com.au


WiseTech Global founder and<br />

chief executive Richard White<br />

WISETECH GOES BACK<br />

TO MASSACHUSETTS<br />

Fair Work Ombudsman fails<br />

in bid for hefty fine for MUA<br />

Hutchison’s decision to sack workers in 2015<br />

has led to a lengthy legal saga<br />

Attempts by the Fair Work Ombudsman<br />

to penalise the Maritime Union more<br />

than $4m have been thrown out by the<br />

Federal Court.<br />

The case related to a decision by<br />

Hutchison Ports Australia in August<br />

2015 to sack 97 workers in Sydney and<br />

Brisbane.<br />

It was alleged the MUA subsequently<br />

took illegal industrial action before a<br />

settlement ultimately was negotiated.<br />

The MUA described the Court’s<br />

decision as a victory for common sense.<br />

National secretary and International<br />

Transport Workers’ Federation president<br />

Paddy Crumlin said the Fair Work<br />

Ombudsman’s claim for $3.7m in<br />

penalties and $600,000 in compensation<br />

to Hutchison was “outrageous”.<br />

“The Federal Court comprehensively<br />

rejected the FWO case for compensation<br />

and reduced the fine to 1% of what the<br />

FWO was seeking,” Mr Crumlin said.<br />

“This decision was a win for common<br />

sense and demonstrates that the fight<br />

must go on to change the rules, so<br />

workers and their unions get a fair go<br />

from the industrial relations system.”<br />

However, the union will have to pay<br />

a fine of $38,000.<br />

Global logistics software group<br />

WiseTech Global has announced the<br />

acquisition of Pierbridge, a parcel<br />

shipping transportation management<br />

solution provider in the United States.<br />

Pierbridge is said to have a focus<br />

on medium and large shippers in the<br />

USA and is based in Massachusetts,<br />

also having development offices in<br />

the UK and Finland.<br />

Pierbridge technology automates<br />

several large shipping operations.<br />

WiseTech Global founder and<br />

chief executive Richard White said<br />

E-commerce was driving parcel<br />

shipment growth internationally and<br />

domestically.<br />

“Across the WiseTech Global<br />

group we are building out the cargo<br />

chain ecosystem to deliver realtime<br />

visibility, control over margins,<br />

faster movement, more efficient use<br />

of resources and error reduction<br />

across all transport modes for our<br />

customers,” Mr White said.<br />

The transaction follows several<br />

other recent WiseTech acquisitions.<br />

Death of CMA CGM’s Jacques R Saadé<br />

The founding president of the CMA CGM Group started with four<br />

employees and went on to build a maritime empire<br />

Jim wilson (2); REA<br />

CMA CGM Group confirmed the death of its founding president Jacques R. Saadé.<br />

In a public statement, the company said it was “with infinite sadness” Mr Saadé had<br />

died on 24 June at the age of 81.<br />

“Jacques R. Saadé dedicated his life to CMA CGM,” the company said in a statement. “An<br />

extraordinary visionary and entrepreneur, he made the Group into a world leader in the<br />

maritime transport of containers, developing the company in more than 160 countries,<br />

while maintaining the family dimension with its values.”<br />

Mr Saadé left war-torn Lebanon to protect his family and founded the Compagnie<br />

Maritime d’Affretement (CMA) in 1978, anticipating world trade growth.<br />

He started with four employees, a single ship and just one maritime service between<br />

Marseilles and Beirut.<br />

In February 2017, on the occasion of his 80th birthday, he appointed his son Rodolphe<br />

Saadé to the position of CMA CGM Group chief executive and then appointed him<br />

chairman of the Board of Directors on 24 November of the same year<br />

thedcn.com.au<br />

July 2018<br />

11


NEWS IN BRIEF<br />

Increase container x-raying<br />

capacity recommended<br />

The Commonwealth Ombudsman was asked to investigate<br />

the administration of the Customs Act by the ABF<br />

Increased X-Ray capacity at smaller<br />

ports was one recommendation<br />

handed down by the Commonwealth<br />

Ombudsman following a report into the<br />

administration of the Customs Act.<br />

According to a document released by<br />

the Ombudsman, representatives of the<br />

CBFCA approached them in late 2016,<br />

concerned about unnecessary delays<br />

from the ABF’s administration of its<br />

customs-related powers.<br />

“Since July 2012 and prior to the<br />

commencement of this investigation,<br />

the Office has received 356 approaches<br />

related to the border control area of the<br />

ABF,” the Ombudsman reported.<br />

“The issues were varied, however some<br />

of the reasons for delays in inbound<br />

freight raised concerns regarding the<br />

reasonableness and consistency of the<br />

ABF’s handling of the clearance of<br />

inbound containerised sea cargo.”<br />

In May 2017 the Ombudsman’s Office<br />

began an investigation, a report being<br />

released a year later.<br />

Some of the Ombudsman’s<br />

recommendations included:<br />

The Department increase x-ray<br />

capacity at smaller ports; and that the<br />

ABF work with industry to improve<br />

asbestos risk assessment to reduce the<br />

repeated targeting of importers with a<br />

history of compliance, except where new<br />

information suggests such targeting is<br />

appropriate.<br />

“This investigation sought to gain an<br />

understanding of how the ABF manages<br />

border compliance in the containerised<br />

sea cargo environment, and how this<br />

affects the legitimate supply chain,” the<br />

Ombudsman noted.<br />

“We expanded the investigation to<br />

include the biosecurity functions of<br />

DAWR, as it works collaboratively with<br />

the ABF in this space.”<br />

The Ombudsman described the<br />

containerised sea cargo industry as “a<br />

complex commercial environment”.<br />

CBFCA chief executive Paul Damkjaer<br />

said he was pleased the council would<br />

receive a private reception from the<br />

Ombudsman.<br />

“We look forward to working closely<br />

with the ABF/DAWR to assist in putting<br />

in place the recommendations that have<br />

been noted,” Mr Damkjaer said.<br />

“The Commonwealth Ombudsman<br />

will be further discussing with<br />

the CBFCA the progress of these<br />

recommendations and seeking a<br />

combined meeting with parties.”<br />

Port Kembla Gas Terminal declared<br />

critical infrastructure<br />

The New South Wales planning minister, Anthony Roberts, has<br />

declared the planned Port Kembla Gas Terminal “Critical State Significant<br />

Infrastructure” citing its importance to future gas supply reliability.<br />

The port was chosen as the site for the LNG import terminal in June.<br />

Projects are classified as state-significant due to their size, economic<br />

value and potential impacts.<br />

The new state-significant classification for the gas terminal means the<br />

project will go through a separate assessment pathway, overseen by the<br />

Independent Planning Commission.<br />

NSW Deputy Premier John Barilaro said if the project was approved, it<br />

could supply 70% of the state’s gas demand.<br />

“The new Port Kembla terminal would allow for the import of cheaper gas<br />

that would increase competition and which has the potential to drive down<br />

the state’s gas prices,” he said.<br />

Despite being declared “critical”, the LNG import project will still be<br />

subject to detailed community consultation.<br />

lOvE lOvE; New South Wales Ports<br />

12<br />

First published in 1891<br />

July 2018 thedcn.com.au


Plans are afoot for a<br />

Webb Dock rail connection<br />

VICT backs Webb Dock rail plans<br />

A far-reaching transport document released by the<br />

Victorian state opposition is sure to get tongues wagging<br />

Victoria International Container<br />

Terminal (VICT) has welcomed a state<br />

opposition announcement that it would<br />

provide $1.5m for a feasibility study into<br />

connecting Webb Dock with Melbourne’s<br />

freight rail network.<br />

The opposition has pledged to:<br />

Revive the Port Rail Shuttle project,<br />

developing a network of suburban<br />

intermodal terminals to improve freight<br />

efficiency and productivity;<br />

Invest $20m in a four-year extension<br />

of the successful Mode Shift Incentive<br />

Scheme to take trucks off some roads;<br />

Provide $1.5m for a feasibility study to<br />

assess options for a rail link to connect<br />

Webb Dock with the freight rail network;<br />

Establish an industry working group<br />

to advise on new industry innovations in<br />

the freight and logistics sector.<br />

VICT chief executive Anders<br />

Dømmestrup said he supported the<br />

Webb Dock rail initiatives.<br />

“As the new container terminal<br />

operating in the Port of Melbourne<br />

and the only international container<br />

terminal at Webb Dock, VICT<br />

is delighted to learn about the<br />

commitment to develop a rail<br />

connection to this area,” he said.<br />

“This investment is great for<br />

Victoria’s economy and ensures the<br />

longevity of the port. An initiative that<br />

everyone should support.”<br />

In a public statement, Nationals<br />

leader and spokesman for regional<br />

Victoria Peter Walsh said the<br />

opposition document reinforced the<br />

importance of the Port of Melbourne<br />

to regional Victoria.<br />

“We must take action to improve<br />

freight movement across Victoria and<br />

make sure exporters in regional Victoria<br />

can get their product from farm to port<br />

quicker,” Mr Walsh said.<br />

Ports spokesman David Hodgett also<br />

spoke of the significance of rail.<br />

“Webb Dock is best placed to service<br />

the next generation of large container<br />

vessels calling into Melbourne, but it<br />

won’t fulfil its potential unless it has a<br />

rail link,” he said.<br />

“An elected Liberal-Nationals<br />

government would look at ways to<br />

link Webb Dock to the rail network to<br />

improve efficiency and also get trucks<br />

off local roads,” Mr Walsh said.<br />

AUSTRALIA TAKES<br />

STEP TO JOIN<br />

WTO PACT ON<br />

GOVERNMENT<br />

PROCUREMENT<br />

Australia has received inprinciple<br />

agreement to join the<br />

WTO Agreement on Government<br />

Procurement (GPA).<br />

The GPA opens government<br />

procurement markets between<br />

members.<br />

The current GPA has 47 current<br />

members, a market valued at US$1.7<br />

trillion and is expected to grow<br />

significantly with the accession of<br />

China and Russia to the agreement.<br />

In return for being able to bid for<br />

government business in member<br />

countries, Australia will allow<br />

overseas companies to bid for<br />

Australian government business.<br />

MAKE SURE YOUR COMPANY<br />

STANDS OUT IN 2019<br />

The Directory of Maritime and Logistics Services<br />

This indispensable reference book, in<br />

production for over 50 years, provides<br />

the most comprehensive guide<br />

available to the Australian transport<br />

industry.<br />

Highlight the key products and<br />

services provided by your<br />

organisation with one of the<br />

following advertising options:<br />

• Display Advertisements<br />

• Company Logos<br />

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For more information, contact us at directory@thedcn.com.au<br />

Visit our new website<br />

www.dcndirectory.com.au<br />

thedcn.com.au<br />

July 2018<br />

13


NEWS IN BRIEF<br />

Underwater<br />

drones to detect<br />

ships’ biohazards<br />

The government is talking tough<br />

as it prepares to do battle with bio-invaders<br />

FAST FACTS<br />

• Some $313m in total funding<br />

includes $283m over the next<br />

five years, plus an additional<br />

one-off amount of $20m in 2017-<br />

18 to support Tasmanian fruit<br />

growers impacted by fruit fly;<br />

• Total funding for biosecurity in<br />

2018-19 is to be $773.2m – an<br />

increase of 28.1%, or $169.8m,<br />

since 2012-13.<br />

• The government had already<br />

allocated $145.9m of the $313m<br />

towards biosecurity in the<br />

recent budget.<br />

Underwater sonar drones and x-ray guns<br />

are to feature as part of Commonwealth<br />

plans to strengthen biosecurity.<br />

Agriculture minister David Littleproud<br />

said the government was “beefing<br />

up” biosecurity via $137.8m to build a<br />

smarter and stronger system to protect<br />

farms and the environment.<br />

“This investment is part of the<br />

Coalition’s comprehensive plan to keep<br />

Australia’s industries and environment<br />

safe from invading biosecurity threats,”<br />

Mr Littleproud said.<br />

“A $25.2m Biosecurity Innovation<br />

Program will invest in smart new<br />

technology, such as underwater sonar<br />

drones to check for pests on the<br />

underside of ships and x-ray guns to scan<br />

more passenger baggage more quickly at<br />

airports,” he said.<br />

“Electronic sensors in sea containers<br />

will pick up intruding insects through<br />

sound and smell.”<br />

Mr Littleproud said a further $36.5m<br />

would be allocated for a team of<br />

biosecurity analytics specialists to help<br />

determine which passengers, countries<br />

and imports were likely to be hazards.<br />

Also getting a boost will be the<br />

Indigenous Biosecurity Rangers program<br />

via $33.5m over the next five years to<br />

employ 69 groups of Indigenous Rangers<br />

on the coastline of northern Australia.<br />

“The Rangers access remote areas to<br />

conduct animal disease samples, insect<br />

trapping and plant diseases monitoring<br />

and are now using drones to assist with<br />

plant surveillance work,” said.<br />

“We have set aside $35m in<br />

contingency funding, ready to go if we<br />

do face an incursion we need to stamp<br />

out. Another $7.6m over five years<br />

will establish and appoint an ongoing<br />

Environmental Biosecurity Protection<br />

Officer and staff within the Department<br />

of Agriculture,” Mr L Littleproud said.<br />

Such an officer would prepare plans<br />

and invest in projects to keep out threats<br />

including the Asian black spined toad,<br />

said to be similar to the cane toad which<br />

has already wreaked havoc.<br />

“Pests and diseases have an<br />

environmental impact,” he said.<br />

Source: Office of David Littleproud<br />

2018 INDUSTRY EVENTS<br />

DATE<br />

EVENT<br />

1 August WISTA Australia Conference, Sydney<br />

1-2 August Australian Grains Industry Conference, Melbourne<br />

3 August SCLAA Women in Logistics Lunch, Melbourne<br />

8 August VTA Freight Outlook 2018, Melbourne<br />

8 August Women in Logistics Forum, Sydney<br />

27-29 August Ports Australia Biennial Conference, Darwin<br />

31 August Shipping Australia Limited Port Kembla Luncheon, Wollongong<br />

1 September VTA Australian Freight Industry Awards, Melbourne<br />

12-14 September Australian Cruise Association Annual Conference, Broome<br />

19-21 September Australasian Marine Pilots Institute Spring Workshop, Darwin<br />

23 October Shipping Industry Charity Golf Challenge, Sydney<br />

1-3 November CBFCA National Conference, Sydney<br />

22 November Australian Shipping and Maritime Industry Awards, Sydney<br />

23 November SCLAA Awards Gala Dinner, Sydney<br />

Please contact DCN – editorial@paragonmedia.com.au – to notify us of annual events.<br />

DEVONPORT BERTH<br />

CONVERTED FOR<br />

CATTLE<br />

Tasports says work is underway to<br />

reconfigure Devonport East Berth 3<br />

for the movement of livestock.<br />

This is to allow its subsidiary Bass<br />

Island Lines (which runs the vessel<br />

John Duigan) to move cattle.<br />

“This port infrastructure work is<br />

to ensure that a Devonport call can<br />

be added to the weekly schedule<br />

specifically for cattle destined to JBS<br />

at Longford,” a BIL statement read.<br />

“This initiative is in response to our<br />

customers’ requests and contributes<br />

to improved animal welfare.”<br />

The berth is expected to be ready<br />

for a call in early July.<br />

aquapix<br />

First published in 1891<br />

14 July ‘18 thedcn.com.au


Australia’s best connected gateway port


TRADE MINISTER COMMENT<br />

The Trans-Pacific Partnership:<br />

seizing the day<br />

Steven Ciobo, minister for trade, tourism and investment, discusses how TPP-11<br />

will further enable businesses to benefit from regional value chains<br />

THE COMPREHENSIVE AND<br />

Progressive Agreement for Trans-Pacific<br />

Partnership, or TPP-11, is a highly<br />

ambitious free trade agreement (FTA)<br />

signed on 8 March 2018 by Australia,<br />

Brunei, Canada, Chile, Japan, Malaysia,<br />

Mexico, New Zealand, Peru, Singapore<br />

and Vietnam. It is set to provide new<br />

opportunities for Australian exporters<br />

and importers as well as shippers,<br />

customs brokers and freight forwarders.<br />

The TPP-11 will liberalise more than<br />

98% of tariffs in a trade area that has a<br />

GDP of $13.7 trillion and encompasses<br />

nearly 500m consumers. The Turnbull<br />

government is working hard to ensure<br />

our businesses can take advantage of the<br />

deal as soon as possible.<br />

THE IMPACT OF THE TPP-11<br />

The TPP-11 is much more than a<br />

traditional tariff-cutting deal – this<br />

agreement will dismantle some of the<br />

most persistent barriers to free trade. It<br />

has a single set of rules of origin, allowing<br />

exporters to complete one standard set of<br />

documentation to claim preferential tariff<br />

treatment within the TPP-11 market, and<br />

will allow producers to self-certify.<br />

The agreement includes modern<br />

rules that will provide certainty to<br />

traders when liaising with customs<br />

authorities. It will also provide certainty<br />

around customs processes by allowing<br />

for advance rulings on the tariff<br />

classification of a good; how it should<br />

be valued; from where the good is<br />

originating and how to claim preference;<br />

and independent review of decisions by<br />

customs authorities.<br />

For the first time in a regional<br />

agreement, duty-free entry will be given<br />

to the temporary entry of containers<br />

and pallets involved in transporting<br />

goods. This will reduce costs considerably<br />

for Australian exporters and transport<br />

companies, who currently pay duties as<br />

high as 20% in some TPP-11 countries.<br />

Malaysia has also guaranteed its current<br />

investment regime for freight transport<br />

(with a foreign equity regime of 49%)<br />

and has guaranteed that any future<br />

market reforms will flow through to<br />

Australian producers.<br />

In addition, the TPP-11 promotes high<br />

quality standards for the treatment of<br />

express shipments, including courier<br />

services. It encourages the provision of<br />

information before a shipment arrives<br />

and demands minimal documentation<br />

requirements. The TPP-11 encourages<br />

the adoption of simplified customs<br />

procedures, thereby reducing the time<br />

taken to clear goods by allowing advance<br />

electronic submission and processing<br />

of customs information and allowing<br />

goods to be released before the final<br />

determination of customs duties.<br />

The TPP-11 will further enable<br />

Australian businesses to benefit from<br />

regional value chains. It does so by<br />

allowing countries to specialise in<br />

their respective areas of comparative<br />

advantage, which in turn delivers a boost<br />

in productivity and extra income for<br />

Australian businesses.<br />

This agreement, at its core, operates<br />

on the principles of openness, fair<br />

competition and transparency. The scope<br />

of this deal and its level of ambition<br />

cannot be underestimated. The TPP-11 will<br />

have a major impact on our region’s trade<br />

and economic landscape, and its reach will<br />

naturally expand as more countries sign<br />

up for membership, increasing the size and<br />

significance of the agreement.<br />

SO WHAT’S NEXT?<br />

The TPP-11 is currently undergoing<br />

parallel parliamentary review processes<br />

Above: Steven Ciobo, minister for trade,<br />

tourism and investment<br />

This agreement, at its core, operates on the principles<br />

of openness, fair competition and transparency<br />

in the countries it covers. The<br />

agreement is to enter into force<br />

60 days after six of the 11 signatories<br />

have ratified the agreement. It is<br />

important that Australia is a part of<br />

this first wave of countries that ratify<br />

the new agreement. The government<br />

is focused on concluding Australia’s<br />

domestic treaty-making processes as<br />

swiftly as possible.<br />

GETTING THE BENEFITS<br />

To make it easier for Australian<br />

businesses to enjoy the benefits of FTAs,<br />

the FTA Portal (ftaportal.dfat.gov.<br />

au/), maintained by the Department<br />

of Foreign Affairs and Trade, can help<br />

importers and exporters understand<br />

which FTA suits their business best.<br />

And, for more information on the<br />

TPP-11, please visit dfat.gov.au/trade/<br />

agreements/not-yet-in-force/tpp-11.<br />

Image supplied<br />

16<br />

First published in 1891<br />

July 2018<br />

thedcn.com.au


“We care for<br />

our clients and<br />

their cargo.”<br />

NEWCASTLE STEVEDORES PTY LTD<br />

ABN 37 076 866 156<br />

TELEPHONE: 02 4978 7100<br />

130 Young St, Carrington NSW<br />

PO Box 190, Carrington NSW 2294<br />

MOBILE: 0412 680 001<br />

E-MAIL: exec@newcastlestevedores.com.au<br />

www.newcastlestevedores.com.au


LIFE IN THE SUPPLY CHAIN<br />

Logistics growth in Asia –<br />

the view from Singapore<br />

SCLAA national chairman Amanda O’Brien writes about China, conferences, trade,<br />

diversity and bringing about change in the logistics industry<br />

THE SCLAA CONTINUES TO GROW<br />

its presence in global markets.<br />

Attending as a guest of LogiSYM for<br />

one of Asia’s largest logistics and supply<br />

chain conferences in Singapore, it was<br />

evident supply chains face the greatest<br />

challenge in the next decade. Resilience,<br />

innovation and internal capabilities<br />

of organisations were highlighted<br />

as key themes to sustain long-term<br />

viability. The ability of companies to<br />

maintain speed and flexibility in a<br />

highly technological market is essential<br />

to sustaining robust supply chains.<br />

There are great benefits generated from<br />

increased supply-chain pipeline velocity,<br />

profitability and performance. The twoday<br />

conference was hosted at the NUSS<br />

Kent Ridge Guild House in Singapore<br />

and brought together 300-plus shippers,<br />

manufacturers, 3PLs, forwarders,<br />

logistics professionals, educators and<br />

technology providers from around<br />

Asia. This is the fourth time LogiSYM<br />

has hosted an event in Singapore in<br />

partnership with The Logistics and<br />

Supply Chain Management Society,<br />

which is Asia’s premier peer-to-peer<br />

members’ only logistics practitioners’<br />

association. The symposium aimed to<br />

bridge the gap between supply chain<br />

concepts and technology and real world<br />

implementation.<br />

COLLABORATION<br />

Can we really predict what requirements<br />

are needed in the supply chain areas<br />

over the next 40 years, or even the<br />

coming decade? Certainly not. In the<br />

new normal everything and anything is<br />

possible. We have come to expect natural<br />

disasters and the need to make faster<br />

decisions. We are already working in<br />

the midst of megatrends, globalisation,<br />

urbanisation, shifting economic powers<br />

and scarcity of natural resources, nextgeneration<br />

technologies and climate<br />

change. Efficient urban logistics is an<br />

increasing requirement, and distribution<br />

centres or hubs on city outskirts will<br />

be required to accommodate increasing<br />

population and demanding consumer<br />

driven online buying.<br />

CHINA’S PLAN<br />

At the conference the Belt and Road<br />

Initiative was articulately presented by<br />

Ton Van Den Bosch, energy terminals<br />

and infrastructure lawyer at Ince &<br />

Co LLP. Ton is the global head of Ince<br />

& Co’s ports, logistics and terminals<br />

practice and head of projects and energy<br />

in Asia. He has particular expertise in<br />

frontier and emerging markets in Africa<br />

and Asia. The Belt and Road Initiative<br />

is President Xi Jinping’s strategic vision<br />

to strengthen the long-term economic<br />

and social prosperity of participating<br />

countries and to enhance global trade<br />

and investment connectivity. To date,<br />

60 countries have shown interest. In<br />

2014 Xi Jinping, in his address to the<br />

Australian parliament, said China<br />

welcomed Australia’s participation in<br />

the “maritime Silk Road”. Australia<br />

and China have a strong relationship<br />

strengthened by the China-Australia<br />

Free Trade Agreement. China is one of<br />

our most important trading partners.<br />

BELT AND ROAD IN AUSTRALIA<br />

For Australia, the Belt and Road<br />

Initiative means expanding outbound<br />

and inbound trade and investment<br />

opportunities, and the Initiative is<br />

important to Australia’s infrastructure<br />

development. Trade between China and<br />

Australia was valued at $130bn in 2013<br />

(that is just under 24% of our total trade<br />

in goods and services, making China by<br />

far the most important single market for<br />

Australian exports). China is Australia’s<br />

largest trading partner for imports and<br />

exports. Australia is China’s sixth largest<br />

trading partner. Some 25% of Australian<br />

manufactured imports come from China<br />

Above: Amanda O’Brien, Supply Chain<br />

and Logistics Association of Australia<br />

national chairman<br />

and 13% of its exports are thermal coal<br />

to China. Ton stated that US$1.3 trillion<br />

globally had already been invested in the<br />

Belt and Road Initiative.<br />

BUILD BETTER BUSINESS<br />

Dr John Gattorna, a world expert and<br />

global supply chain thought leader and<br />

author, opened as keynote speaker at the<br />

global logistics conference in Singapore.<br />

He said growth through turbulence and<br />

volatility drives innovation. Looking<br />

outside of our businesses and seeing<br />

trends and different core relationships<br />

assists us to understand expectations of<br />

customers.<br />

He said most businesses manage<br />

vertically, but customers manage<br />

horizontally and changing the design<br />

of customers’ demands would enable<br />

organisations to sense key markets and<br />

internal capabilities to adapt.<br />

Agility to make fast decisions and<br />

changes in a volatile environment<br />

is key he said, giving the example of<br />

Zara, which has had 16 or 17 product<br />

changes in a year and maintain a<br />

Image supplied<br />

18<br />

First published in 1891<br />

July 2018<br />

thedcn.com.au


DEPARTMENTAL PERSPECTIVE<br />

DAWR<br />

responsible operating model which<br />

enables them sustained profitability. It<br />

is a requirement to have a fully flexible,<br />

agile, lean and collaborative culture to<br />

make a great company. Being trusted<br />

and reliable, process driven, prefect<br />

ready, responsive and innovative is the<br />

result of robust processes.<br />

OUTLOOK 2018<br />

SCLAA participated in a key panel<br />

discussion at The Australian Tourism &<br />

Transport Forum’s Outlook Conference<br />

held at the Hilton Hotel in Sydney in<br />

May. Outlook 2018 featured Australian<br />

and international keynote speakers,<br />

expert panels and case studies and<br />

has become Australia’s pre-eminent<br />

national tourism industry and policy<br />

conference. The conference brought<br />

together public and private sector<br />

experts from throughout Australia and<br />

across the globe, with discussions on the<br />

rise of the shared economy, the global<br />

over tourism phenomenon, security and<br />

the threat of terrorism, and emerging<br />

transport issues affecting the Australian<br />

Transport Sector.<br />

KEEPING AHEAD WITH AIRFREIGHT<br />

The ‘Ahead of the Curve’ panel<br />

discussion was commandeered<br />

masterfully by Margy Osmond, CEO<br />

of TTF; Simon Gandy, chief of aviation<br />

Melbourne Airport; David Goh, general<br />

manager Australia/New Zealand for<br />

Singapore Airlines Cargo; and Douglas<br />

Robinson, vice-president of IBM Asia<br />

Pacific. Discussion topics related that the<br />

volume of international air freight and<br />

the inevitable dichotomy that population<br />

growth will continue over the next 20<br />

years. The volume of outbound and<br />

inbound airfreight through Australian<br />

airports is forecast to increase by 6% a<br />

year over the next twenty years and by<br />

1.2m tonnes by 2030. Seventy percent of<br />

airfreight is uplifted at Australia’s two<br />

major airports in Melbourne and Sydney.<br />

In terms of volume, New Zealand is<br />

the largest destination for Australia<br />

outbound air freight. It accounts for 16%<br />

of total outbound airfreight followed by<br />

Singapore, Hong Kong, the United Arab<br />

Emirates, the USA, Japan, Malaysia,<br />

Thailand and Indonesia. Regarding<br />

Australia’s inbound freight volume,<br />

China is the largest source. It accounts<br />

for approximately 40% of total inbound<br />

aircraft 12 million tonnes.<br />

Happy second<br />

birthday to<br />

Australia’s “vital<br />

Biosecurity Act”<br />

The Biosecurity Act has<br />

allowed some changes<br />

in the way the Department<br />

of Agriculture and Water<br />

Resources conducts its<br />

essential business,<br />

writes Lyn O’Connell<br />

AUSTRALIA’S BIOSECURITY ACT<br />

has just turned two. It‘s been a couple<br />

of very big years for this vital piece of<br />

legislation that helps protects Australia’s<br />

enviable reputation as a producer of<br />

“clean and green” produce by stopping<br />

exotic pests and diseases entering our<br />

country and becoming established.<br />

The Act has allowed some important<br />

changes in the way the Department of<br />

Agriculture and Water Resources conducts<br />

its essential biosecurity business to<br />

protect our agricultural industries, unique<br />

environment, our tourism industries, our<br />

health, and our broader economy.<br />

Operations under the Biosecurity Act<br />

commenced on 16 June 2016 but this was<br />

only the first stage of implementation.<br />

The second stage, implementing<br />

remaining provisions of the Act,<br />

has now been completed. One of<br />

the key achievements during this<br />

period was the implementation of the<br />

International Convention for the Control<br />

and Management of Ships’ Ballast Water<br />

and Sediment 2004, which will assist<br />

in limiting the spread of marine pests<br />

already established in Australian ports.<br />

Implementation of the Biosecurity Act<br />

has simplified administrative procedures<br />

and this has resulted in significant<br />

financial benefits for stakeholders<br />

Above: Lyn O’Connell, Deputy Secretary,<br />

Department of Agriculture and Water Resources<br />

including the import industry.<br />

There are a couple of implementation<br />

measures to come, these include working<br />

with first points of entry operators to<br />

ensure they are ready to meet legislative<br />

provisions that come into effect from<br />

June 2019 and ongoing updates to import<br />

conditions as biosecurity risks change.<br />

The volume of goods and people<br />

travelling to Australia is projected to<br />

continue to increase in coming years<br />

and the department is working hard,<br />

supported by the Biosecurity Act, to ensure<br />

it is in a strong position to respond to the<br />

evolving biosecurity environment.<br />

For more on the Biosecurity Act and<br />

your obligations under the Act visit<br />

agriculture.gov.au/biosecurity-act.<br />

thedcn.com.au July 2018<br />

19


WOMEN IN MARITIME<br />

Raising the bar<br />

Diversity and inclusion is no longer simply about recruitment quota filling,<br />

writes Jeanine Drummond, newly appointed Newcastle harbour master<br />

WELCOME TO THE DCN’S FIRST<br />

column dedicated to women in maritime.<br />

This is more than just an opportunity<br />

to recognise the work of women in the<br />

industry; it gives us a platform to discuss<br />

issues and raise awareness about how<br />

diversity and inclusion contribute to<br />

successful organisations.<br />

So why do we need this column?<br />

Well, the number of female participants<br />

in most maritime industry sectors in<br />

Australia remains remarkably low.<br />

Statistics are difficult to find but if<br />

qualifications are anything to go by,<br />

around 98% of Standards of Training,<br />

Certification and Watchkeeping for<br />

Seafarers (STCW) qualifications are<br />

currently issued to men. That is similar<br />

to the percentage of male marine pilots,<br />

tug masters, tug engineers and tug<br />

crews across Australia. These on-water<br />

results can have an adverse effect on<br />

medium/long term career progression<br />

for women in maritime into shore-based<br />

management and leadership roles.<br />

Although employers increasingly<br />

acknowledge the importance of equal<br />

employment opportunities, the reality<br />

is well-meaning equal employment<br />

policies often result in little or no actual<br />

improvement in gender diversity in the<br />

medium to long term.<br />

However, in recent years there has<br />

been a quantum shift in the approach to<br />

diversity at work. It’s no longer based on<br />

recruitment quotas, but on increasing<br />

the industry’s visibility, educating job<br />

seekers and students on career pathways,<br />

creating awareness of opportunities and<br />

inspiring people to take them.<br />

And that’s important, as diversity<br />

and inclusion in the workplace gives<br />

an organisation a different approach<br />

to problem-solving, strategising and<br />

collaborating – key elements needed for<br />

innovation and future success.<br />

As one of the 2% of female Australian<br />

STCW holders, it’s pleasing to see this<br />

change. So many organisations now<br />

recognise value in being an equal<br />

opportunity employer.<br />

Twenty-three-years ago I was the only<br />

female among our company’s 28 deck<br />

and engineering cadets starting our<br />

first year at the Australian Maritime<br />

College in Launceston. It was an amazing<br />

opportunity and, like many women, I’ve<br />

worked hard to get to where I am today.<br />

Now, there are organisations that<br />

are helping others pursue similar<br />

opportunities. Two such organisations<br />

working to create equal opportunities<br />

in the Australian maritime industry are<br />

the Women in Shipping and Transport<br />

Association (WISTA) and the Nautical<br />

Institute – South East Australia Branch.<br />

Formed in 2011, the Women in<br />

Shipping and Transport Association<br />

(WISTA) is an international networking<br />

organisation whose mission is to attract<br />

and support women at the management<br />

level in maritime, trading and logistics.<br />

WISTA Australia holds engaging,<br />

education and informative professional<br />

networking series, speaker events and<br />

launched a mentoring program last year.<br />

The Nautical Institute is the<br />

international representative body for<br />

maritime professionals. The NI – South<br />

East Australia Branch recently partnered<br />

with Port Authority of New South Wales<br />

for a ‘Women in Maritime’ initiative<br />

that’s open to all people and maritime<br />

organisations. Its first networking event<br />

at the end of 2017 attracted 80 maritime<br />

people to hear more about efforts to<br />

‘connect women in maritime’.<br />

The initiative quickly gained<br />

momentum and in March 2018 Glenn<br />

McPhee, executive manager at Manpower<br />

Group and director of Recruiting<br />

Services for Defence Force Recruiting,<br />

presented at a ‘Recruiting for Diversity<br />

and Inclusion in Maritime’ workshop to<br />

aid HR professionals in the industry.<br />

These, and similar networking and<br />

workshop events, provide a forum to<br />

discuss the obstacles that women have<br />

faced in our industry and to find ways of<br />

attracting women to maritime roles.<br />

Initiatives like this not only assist<br />

women already in the industry, but<br />

Above: Jeanine Drummond is general<br />

manager, operations and deputy harbour<br />

master for Sydney Harbour. She is also vicechair<br />

of the International Association of Ports<br />

and Harbours Women’s Forum.<br />

inspire those wanting to pursue a<br />

maritime career. These events help<br />

organisations and others in the industry<br />

understand why diversity and inclusion<br />

isn’t just about hitting targets but about<br />

delivering a service that is world class.<br />

I’m proud to contribute to these<br />

organisations and encourage you to get<br />

involved in their networking and social<br />

events; professional development; and<br />

education opportunities.<br />

By working together, we can find<br />

better ways to encourage and empower<br />

women to develop careers in maritime<br />

and make choices that will let them<br />

develop their skills, seek improved<br />

workplace practices and embrace<br />

leadership opportunities.<br />

As a start, why not review what your<br />

organisations can do to encourage<br />

further gender diversity in your<br />

operations and leadership teams?<br />

In this column, you will find out more<br />

about the women who are contributing<br />

to the future success of our industry and<br />

discover what diversity and inclusion can<br />

mean for maritime. We hope it inspires.<br />

Visit wista.net/au and nisea.org<br />

Image supplied<br />

20<br />

First published in 1891<br />

July 2018 thedcn.com.au


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THE BROKER’S VIEW<br />

Talking trade with<br />

the CBFCA<br />

Customs Brokers and Forwarders Council of Australia chief executive<br />

Paul Damkjaer outlines some key talking points<br />

THE CBFCA HAS CONDUCTED<br />

demonstrations of its new electronic<br />

tariff, with great reviews from members.<br />

It is a competitive product for members’<br />

classification needs, whether they<br />

be imports or exports. It is an everevolving<br />

software product to be updated<br />

as we receive member requests. With<br />

it currently in test mode, where it is<br />

available to all members for free, it is to<br />

be officially launched on 1 July 2018.<br />

REGULATORY ENGAGEMENT<br />

While the Department of Home<br />

Affairs and the Australian Border Force<br />

regularly talk of industry engagement,<br />

this only seems to be happening at a<br />

senior management level. Involvement<br />

at this level is welcomed by the CBFCA.<br />

However, it is at the operational day-today<br />

level where improvement is required.<br />

Industry stakeholders trying to resolve<br />

issues in relation to current shipments,<br />

refunds and valuation regularly find<br />

themselves referred from department<br />

to department, receiving email auto<br />

responses. These stakeholders should<br />

have a direct link to the ABF to be able<br />

to find an officer able to resolve the<br />

issue at hand. Border and community<br />

protection is a shared responsibility<br />

and the ABF needs to consider improving<br />

its interface and industry’s access to<br />

skilled officers.<br />

While the CBFCA has obtained a<br />

high-level organisation chart, it is short<br />

of the contacts needed for industry to<br />

run successful businesses. The CBFCA<br />

will continue to seek an operational-level<br />

contact list for members.<br />

GST ON LOW-VALUE THRESHOLD<br />

GOODS<br />

While industry has seen various<br />

communications from the ABF and the<br />

Australian Tax Office, it is fair to say<br />

there are still many within industry who<br />

are confused. At the recent round of<br />

regional CBFCA conventions, the ATO<br />

gave presentations that went some way<br />

towards easing members’ concerns. It<br />

was made quite clear the ATO’s follow-up<br />

actions would be towards the overseas<br />

entity, however the ABF presentation still<br />

leaves members concerned of potential<br />

penalty action down the track.<br />

The ABF provided screen shots of<br />

FIDs and SACs, and advised that should<br />

industry not have the necessary evidence<br />

of GST having been paid at the point<br />

of sale or a VIN, they should process<br />

the clearance in the normal way. It is<br />

then up to the ATO to follow-up noncollection<br />

at the point of sale overseas.<br />

The CBFCA will continue to represent<br />

members concerns to both the ATO and<br />

ABF and work to ensure the protection of<br />

members in this area.<br />

BMSB POST-SEASON REVIEW<br />

DAWR is undertaking a review of the<br />

brown marmorated stink bug (BMSB)<br />

risk season and currently working<br />

with industry to identify performance<br />

improvements for season 2018-19.<br />

The emergency measures applied to<br />

the 2017/2018 BMSB season challenged<br />

the Department and industry with<br />

the facilitation of trade at the border<br />

resulting in extended delays in cargo<br />

clearance and additional costs.<br />

For next season’s measures, the<br />

Department is expected to use the<br />

experiences and data from the recent<br />

season to prepare a BMSB management<br />

strategy for next season.<br />

The CBFCA will continue to consult<br />

with the department on any proposed<br />

measures prior to the commencement of<br />

the next BMSB risk season.<br />

THE OMBUDSMAN<br />

The Commonwealth Ombudsman<br />

has released a report into processing<br />

delays for inbound containerised sea<br />

cargo. In May 2017 the Ombudsman’s<br />

Above: Paul Damkjaer,<br />

chief executive, CBFCA<br />

office started an investigation into the<br />

administration of powers under the<br />

Customs Act 1901 by the then ABF.<br />

The CBFCA had raised concerns about<br />

unnecessary delays stemming from the<br />

ABF’s administration of its customsrelated<br />

powers.<br />

Since July 2012, the office has received<br />

356 approaches related to the border<br />

control area of the ABF.<br />

The report lists recommendations<br />

which address many of the concerns<br />

CBFCA and industry have raised in<br />

regards staffing levels, processing times,<br />

infrastructure, the ability for clear<br />

communication and a clearly detailed<br />

compensation process.<br />

The CBFCA is pleased with the<br />

reception by the Ombudsman and<br />

looks forward to working closely with<br />

the ABF to assist in putting in place its<br />

recommendations.<br />

The Ombudsman will engage in<br />

further discussions with the CBFCA on<br />

the progress of these recommendations<br />

and will also seek a combined meeting<br />

with other key stakeholders.<br />

Ian Ackerman<br />

22<br />

First published in 1891<br />

July 2018<br />

thedcn.com.au


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Brisbane handles around $50 billion in international trade annually.<br />

We work closely with customers and stakeholders to facilitate trade, unlock<br />

supply We work chain closely value, with and customers sustainably and develop stakeholders the port to facilitate for Queensland. trade, unlock<br />

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SUSTAINABLE PORTS & LOGISTICS<br />

Newcastle<br />

environmental<br />

restoration<br />

plans honoured<br />

The project to rehabilitate shorebird habitat<br />

drew PIANC’s attention,<br />

writes David Sexton<br />

NEWCASTLE COAL INFRASTRUCTURE<br />

Group was recently awarded a PIANC<br />

Working with Nature Certificate for<br />

its Shorebird Rehabilitation project.<br />

The Certificate was awarded at the<br />

PIANC 2018 congress in Panama and<br />

was one of just two Australian projects<br />

ever to receive the award.<br />

The tidal wetlands around Port of<br />

Newcastle are home to threatened<br />

species, including coastal saltmarsh<br />

vegetation and migratory shorebirds.<br />

Back in 2016 NCIG began its<br />

Shorebird Rehabilitation project as a<br />

requirement of its project approval<br />

to re-establish habitat for shore birds<br />

and the endangered coastal saltmarsh<br />

ecological community.<br />

It then went “above-and-beyond”<br />

compliance requirements, increasing the<br />

scope area from eight to 24 hectares to<br />

enable a better environmental outcome.<br />

The project removed a large area of<br />

mangroves encroaching on a former<br />

section of saltmarsh and mudflats. The<br />

mangroves were deemed a key factor in<br />

the decline of the saltmarsh.<br />

NCIG worked with UNSW Water<br />

Research Laboratory and Local Land<br />

Services to install a culvert and valve<br />

system to control tidal flooding and<br />

prevent mangrove seeds from entering.<br />

The Port carried out a 12-month<br />

saltmarsh rehabilitation project to help<br />

with the overall success of NCIG’s project.<br />

Saltmarsh is now appearing across the<br />

site and migratory birds have returned.<br />

Birds include the critically endangered<br />

curlew sandpipe and whimbrel.<br />

“It’s an illustration that the process<br />

adopted through integrating stakeholder<br />

engagement, cutting edge research and<br />

sound environmental practices can<br />

achieve tangible outcomes which are<br />

considered world’s best practice,” said<br />

NCIG chief executive Aaron Johansen.<br />

“The great beneficiary of this project<br />

is local wetland communities and the<br />

vulnerable and endangered migratory<br />

shorebird species which rely on them.”<br />

Discussing the project, outgoing Port<br />

of Newcastle chief executive officer<br />

Geoff Crowe said the port “recognises<br />

that its boundary is just a line on a<br />

map and the port resides within a very<br />

important, multi-facetted natural<br />

ecosystem”.<br />

Artificial reefs set to restore Port Phillip Bay to health<br />

SOME 55 tonnes of limestone rubble and 13.75 tonnes of<br />

recycled sea shells are to be placed onto the sea bed of Corio<br />

Bay (part of Port Phillip Bay) to create so-called “shellfish reefs”.<br />

The 500 square metres of reef bases near Geelong are being<br />

developed by The Nature Conservancy as part of efforts to<br />

restore health to Port Phillip Bay as a whole.<br />

Shells have been sourced as part of the ‘Shuck Don’t Chuck’<br />

recycling program, including from restaurants.<br />

The Conservancy will return to the laid-bases in mid-July<br />

along with Margaret’s Reef off St Kilda, which was built last year<br />

with eleven tonnes of live mussels grown by a local farmer.<br />

“Our project to restore the lost shellfish reefs of Port Phillip<br />

Bay has been up and running for more than three years now,”<br />

marine restoration co-ordinator with The Nature Conservancy<br />

Simon Branigan said.<br />

“The momentum behind restoring the shellfish reefs that<br />

once dominated up to half of Port Phillip Bay’s seafloor,<br />

continues to build and it’s great to be leading that push.”<br />

Four oyster reefs at Wilson Spit in Corio Bay and Margaret’s<br />

Reef in Hobsons Bay have already been restored totalling 1<strong>150</strong><br />

square metres over a total footprint of one hectare.<br />

Two million hatchery-reared oysters have been used to seed<br />

these new reefs which are encouraging other species to return.<br />

“By working with partners like the Victorian Government<br />

and the Albert Park Yachting and Angling Club to bring back the<br />

reefs that were historically overexploited,” Mr Branigan said.<br />

GeelongPort has provided The Nature Conservancy with<br />

facilities to load limestone and recycled shells onto their vessel<br />

to transport to Wilson Spit to form a reef base.<br />

“It has been a wonderful opportunity for GeelongPort to<br />

be involved in the supply chain process. GeelongPort facilities<br />

provide support to the reef restoration project and we will<br />

continue to support as the project develops,” GeelongPort<br />

general manager of operations at Adam Gordon said. “We<br />

consider ourselves custodians of the bay and contributing<br />

towards the project aligns to our environmental objectives.”<br />

MyShot<br />

24<br />

First published in 1891<br />

July 2018<br />

thedcn.com.au


INDUSTRY OPINION<br />

Industry escalates<br />

biosecurity levy concerns<br />

Benefits of a new levy, set to come into force next year,<br />

may not be enjoyed by those who pay it, writes FTA’s Travis Brooks-Garrett<br />

FREIGHT & TRADE ALLIANCE (FTA)<br />

and the Australian Peak Shippers<br />

Association (APSA) have received<br />

clarification that the new levy effective<br />

1 July 2019 is a general taxation with<br />

revenue to contribute to consolidated<br />

government revenue.<br />

As a general taxation, industry will have<br />

no transparency as to how this money<br />

will be spent and will have no guarantees<br />

the revenue will find its way back to<br />

Department of Agriculture and Water<br />

Resources (DAWR) frontline services.<br />

As the levy is not considered a “cost<br />

recovery”, we understand that it is<br />

not required to comply with the Cost<br />

Recovery Guidelines and is not subject to<br />

industry review via the Industry Finance<br />

Consultative Committee (IIFC) or other<br />

industry committees.<br />

SURELY THERE IS A BETTER WAY.<br />

The proposed method of collection,<br />

via the stevedores, presents further<br />

issues for industry. Like the notorious<br />

“infrastructure charges”, it is anticipated<br />

that stevedores will look to recover this<br />

cost via the Vehicle Booking System<br />

(VBS) used by transport companies to<br />

book time slots for the collection of<br />

import containers. If this were to occur,<br />

it is again anticipated that transport<br />

operators would look to recover this<br />

cost with an additional administrative<br />

fee to address operational costs and<br />

offset negative cash flow implications.<br />

This cost recovery is likely to cascade<br />

down the supply chain with importers<br />

ultimately paying an inflated price with<br />

the additional impost and complexity of<br />

GST payments.<br />

FTA and APSA have recommended<br />

the department consider alternative<br />

models, including collecting the levy<br />

via the Full Import Declaration (FID).<br />

The FID is already a collection point for<br />

duty, GST, import processing charges<br />

and other government-imposed charges.<br />

Andrew Crawford, FTA’s head of border<br />

and biosecurity, has recommended that<br />

the Integrated Cargo System (ICS) has<br />

code reinstated to calculate containers<br />

per FID to administer the new levy.<br />

The benefit of the FID is that costs are<br />

usually passed on from customs brokers<br />

to importers at a net rate as per costs<br />

displayed on the FID.<br />

A better outcome, instead of a tax,<br />

would be an equivalent increase in cost<br />

recovery. At least that way industry will<br />

know that the department will receive<br />

the revenue. This would provide industry<br />

with some guarantee that the revenue<br />

would be spent on frontline border<br />

activities, as well as delivering a level of<br />

transparency and accountability as to<br />

how the revenue will be spent.<br />

Instead, we have another fixed tax.<br />

A stamp duty on international trade<br />

movements. As container volumes<br />

increase so will the government’s<br />

revenue, with no guarantee that<br />

frontline services will be improved.<br />

At a time where many media<br />

commentators are decrying “trade wars”<br />

between our major trading partners,<br />

it is a curious time for Australia to be<br />

introducing a general tax on imports.<br />

The question must be asked: how do our<br />

trading partners feel about such a tax?<br />

Does this breach any of our existing<br />

international commitments? Will some<br />

of our trading partners simply respond in<br />

kind with a levy of their own?<br />

It is unsurprising that the response<br />

from the Australian freight industry<br />

to this levy has been strong and swift.<br />

The Australian Logistics Council (ALC),<br />

Ports Australia and other bodies have all<br />

provided media commentary opposing<br />

the levy. While FTA participates on<br />

several DAWR industry forums, we can<br />

confirm that there was no consultation<br />

or warning before the budget<br />

announcement. It caught the entire<br />

industry off guard. The only warning<br />

was a “teaser” article in The Australian,<br />

immediately before the budget, which<br />

suggested the possibility of such a levy.<br />

In that article, the suggestion was made<br />

that a similar arrangement may be put<br />

in place for airfreight imports. The final<br />

budget announcement, however, was<br />

limited to sea freight imports only.<br />

A better outcome, instead of a tax,<br />

would be an equivalent increase in cost recovery<br />

While we appreciate the ongoing<br />

engagement with DAWR in exploring<br />

alternative models, FTA and APSA also<br />

look forward to working more closely<br />

with Treasury on this issue.<br />

FTA and APSA will continue to<br />

advocate for industry and will provide<br />

further updates as they emerge.<br />

Above: Travis Brooks-Garrett – Freight<br />

& Trade Alliance/Australian Peak<br />

Shippers Association<br />

David Sexton<br />

thedcn.com.au July 2018<br />

25


FUTURE GENERATIONS<br />

The next generation in<br />

the invisible shipping industry<br />

Shipping is facing a big problem in sourcing the next generation of seafarers, with<br />

younger people leaving the industry, or not joining at all, writes Stephen Westfield<br />

IN LATE 2017, I WAS SHOCKED TO<br />

receive more than 30 email bounce<br />

backs from a distribution to Young<br />

Shipping Australia (YSA) members after<br />

sending out an invitation to one of<br />

our monthly functions. They had left<br />

the industry, moved on from the lines,<br />

logistics providers, freight forwarders<br />

and associated industry companies<br />

where they had once worked and had<br />

been valued industry contributors.<br />

It was a sobering reality that many<br />

young people had quit the industry.<br />

It is true we had just come out of the<br />

longest and most depressed periods<br />

for shipping rates in a generation. The<br />

email bounce-backs drove home that<br />

suddenly, there were fewer opportunities,<br />

stagnant wage growth, smaller bonuses<br />

and more attractive jobs elsewhere in<br />

other industries. In addition, there has<br />

been progressively more automation in<br />

shipping which has resulted in rising<br />

redundancies and the movement of<br />

back-office roles away from Australia to<br />

cheaper labour markets. Few industries,<br />

and shipping is certainly not one of<br />

them, have not been seriously affected by<br />

digital technology and a relentless search<br />

by major employers for low-cost labour.<br />

At sea, there is a looming shortage<br />

of seafarers. A Drewry report released<br />

in early 2018 warned that, globally,<br />

shipping will require an additional<br />

42,500 officers by 2019. Attracting the<br />

next generation of workers at sea from<br />

the most consumerist generation in<br />

history is proving difficult. Increasingly<br />

quicker port turnarounds, stringent<br />

security and visa requirements,<br />

combined with seven-day working weeks<br />

and long periods of time away from<br />

family, the industry faces a challenging<br />

task in attracting the best people.<br />

So what attracts people to maritime<br />

industry in the first place? This<br />

silent industry dominated by global<br />

conglomerates few outside have heard<br />

of that are responsible for ultimately<br />

transporting almost every item bought<br />

by households worldwide. I believe<br />

that most people who end up working<br />

in the maritime industry simply fall<br />

into it through family or a friend, or<br />

by applying for a job after university<br />

The email bounce-backs drove home that suddenly,<br />

there were fewer opportunities, stagnant wage<br />

growth, smaller bonuses and more attractive jobs<br />

elsewhere in other industries<br />

or school to a company that happens<br />

to be logistics-related. Intentional or<br />

not, industry joiners will soon come<br />

to a realisation of a whole new world.<br />

The scale of the industry that delivers<br />

your winter sweater or newest iPhone is<br />

mind-boggling once it is appreciated how<br />

complex it is. Some are attracted to the<br />

romanticism of a career in the industry<br />

involving great vessels, international<br />

trade across jurisdictions and vast seas.<br />

I believe there is room for<br />

improvement here in Australia. We<br />

need to attract the best and brightest<br />

to our industry, as we have fallen well<br />

behind based on comparisons with other<br />

more traditional maritime countries<br />

such as Singapore, Germany, Greece<br />

and the Scandinavian nations. The<br />

Singapore Maritime Foundation is worth<br />

noting for promoting potential career<br />

paths within the industry for talented<br />

university graduates. It is not only up<br />

to industry bodies, but also the private<br />

sector to share the role of attracting the<br />

best young strategic thinkers with an<br />

aptitude for technology. With improving<br />

freight rates and for most global shipping<br />

companies, it will be interesting to see<br />

if better returns allow for more enticing<br />

offers to potential industry entrants. It<br />

will be the industry that benefits most by<br />

adopting this course of thinking.<br />

YSA was established to encourage and<br />

assist young professionals in the shipping<br />

industry in Australia with regular<br />

educational and social events tailored to<br />

professional development for the under<br />

35s age group. If you would like to get<br />

involved in Young Shipping Australia,<br />

our email is ysa@shippingaustralia.<br />

com.au. Upcoming YSA events in<br />

Sydney include networking drinks in<br />

July and a breakfast panel with industry<br />

representatives in August. You can also<br />

kickstart your knowledge of the shipping<br />

industry with online training courses<br />

available through Shipping Australia at:<br />

www.shippingaustralia.com.au/coursesand-careers/courses/online-courses/.<br />

Above: Stephen Westfield, chairman, Young<br />

Shipping Australia, New South Wales<br />

Image supplied<br />

26<br />

First published in 1891<br />

July 2018 thedcn.com.au


Committed to Australia<br />

Introducing the new CAE Service<br />

Launching in August 2018 and servicing Australia and China, Evergreen’s<br />

commitment to Australia is further enhanced.<br />

With a port rotation of Sydney, Melbourne, Brisbane, Ningbo, Shanghai<br />

and Yantian the CAE service will offer industry leading transit times.<br />

In conjunction with existing CAT and NEAX services Evergreen will<br />

continue to assist shippers to enhance their market competitiveness in<br />

the region.<br />

Sales contacts:<br />

SYDNEY: 02 9936 5700 sydemcbiz@evergreen-shipping.com.au<br />

MELBOURNE: 03 8628 8888 melemcbiz@evergreen-shipping.com.au<br />

BRISBANE: 07 3237 7377 bbnemcbiz@evergreen-shipping.com.au


First published in 1891<br />

COASTAL SHIPPING<br />

28 July 2018<br />

thedcn.com.au


& True<br />

the<br />

coastal<br />

Good mates Steve Pelecanos and Denis<br />

Gallagher are going where others dare<br />

not: they plan on establishing a coastal<br />

service for the coast of Queensland,<br />

writes David Sexton<br />

Mike Nash<br />

Travelling down Brisbane River in the early morning<br />

SPEAKING WITH CAPTAIN STEVE PELECANOS, THERE<br />

is no mistaking his passion for domestic shipping.<br />

“We’re strong believers in a domestic coastal shipping<br />

service. It is just crazy stuff that we haven’t got one,” Captain<br />

Pelecanos said.<br />

“When you look at it and analyse it, it is just crazy that we<br />

haven’t got one.”<br />

Captain Pelecanos and his good mate Captain Denis Gallagher<br />

are establishing a coastal service focused on the Queensland<br />

coast via their business, Hermes Maritime Pty Ltd.<br />

Captain Pelecanos told Daily Cargo News about why he<br />

thinks building a new coastal service is a goal worth pursuing<br />

and why it can be successful, even though many who have gone<br />

before have failed.<br />

Captain Pelecanos said the two friends – both highly<br />

experienced mariners – agreed in late 2016 that it was high time<br />

to act.<br />

“We had been looking at the Australian coast since 1987,”<br />

He said.<br />

“We’re not men who are endowed with too much money,<br />

but in 2016, we thought, ‘if we’re ever going to do it, now is the<br />

time to do it’.”<br />

The two men then got to work, conducting their own<br />

feasibility study, which finished up in April 2017.<br />

They concluded it would be viable.<br />

thedcn.com.au<br />

July 2018<br />

29


COASTAL SHIPPING<br />

POLICY SETTINGS CRUCIAL TO REVITALISE THE COASTAL FLEET<br />

Change to current coastal shipping laws have to be the right changes, writes Teresa Lloyd<br />

The need for certainty and stability<br />

of coastal shipping policy settings<br />

in Australia remains critical. Do the<br />

current cabotage arrangements need to<br />

be changed? Yes, they do.<br />

There are currently 50 vessels that<br />

hold a General Licence. That’s probably<br />

a lot more than anyone realised. But<br />

the detail is important. They are: eight<br />

vessels that work in/across Bass Strait;<br />

five dry bulk carriers; five expedition<br />

cruise vessels; one research vessel; 31<br />

servicing northern Australia including a<br />

large number of landing barges. Suffice<br />

to say, the activity of these General<br />

Licence vessels is not preventing<br />

the presence of the foreign-flagged<br />

shipping in coastal trades.<br />

However, it is recognised the process<br />

for obtaining a temporary licence to<br />

work on the coast can be a deterrent.<br />

There are simple fixes to maximise<br />

use of the blue highway and remove<br />

red-tape burdens. These process<br />

improvements are clearly described in<br />

the green paper released in 2016 (mial.<br />

com.au/our-work/coastal-tradinggreen-paper)<br />

and would result in<br />

almost all voyages being undertaken<br />

with the bare minimum of paperwork<br />

and approvals. Most would not even<br />

require an application, far less a<br />

variation, under the proposals put<br />

forward. And, this is possible precisely<br />

because the vast majority of coastal<br />

shipping is undertaken by foreign ships.<br />

Importantly, these changes can<br />

liberate the vast majority without<br />

destroying the fabric of the regime<br />

that offers fair and reasonable checks<br />

and balances for what is left of the<br />

Australian industry. Why hasn’t<br />

this already been done? Failure to<br />

progress change sits squarely with<br />

the proponents of the proposal put<br />

forward by the government. MIAL has<br />

clearly identified the need for a radical<br />

change in the approvals process and<br />

yet the government proposal went<br />

nowhere near far enough in removing<br />

red tape for the voyages where there<br />

is no Australian ship (which is almost<br />

all voyages) and too far in terms of<br />

undermining the integrity of the regime<br />

in terms of tolerances for the few<br />

voyages where it does matter.<br />

Coastal voyages by foreign ships<br />

could be free of application and<br />

variation processes today had the<br />

proposals been properly considered<br />

and drafted – and it is a great shame<br />

this is not the case. But all this is really<br />

tinkering at the edges. A desire for change<br />

beyond the paperwork and processes has<br />

been expressed continually for years by<br />

the full range of impacted stakeholders.<br />

PRAGMATISM<br />

What is very apparent is that after all<br />

this time, there is no genuine desire for a<br />

solution because many parties involved<br />

remain unwilling to be pragmatic. The<br />

way forward cannot be to the benefit of<br />

only one party; there must be a way to<br />

accommodate all interests. Pragmatism is<br />

the only way.<br />

Australia needs a clear vision to create<br />

a stable and sustainable coastal shipping<br />

policy. Such a vision needs to tackle the<br />

core questions:<br />

• What maritime capability does the<br />

country need?<br />

• How will it be provided?<br />

• Who is going to pay for it?<br />

It is possible to design a regime that:<br />

• supports Australian businesses<br />

involved in providing shipping services;<br />

• provides users of shipping services<br />

with the service they need at a rate<br />

they can afford;<br />

• provides work for a strategic group<br />

of Australian maritime workers;<br />

• allows Australia to capitalise on the<br />

natural advantages it has to be a<br />

strong maritime nation with resultant<br />

benefits to the nation (economic<br />

and social)?<br />

Above: Teresa Lloyd,<br />

CEO, Maritime Industry Australia<br />

The government, as custodian of the<br />

national interest, can make this happen.<br />

We need to think differently about<br />

how Australia can maximise the natural<br />

advantages we have to be a shipping<br />

nation, particularly how we see our<br />

coastal shipping task working. It is time<br />

to start looking at new options such<br />

as the use of mini-ports and short-sea<br />

shuttle services.<br />

CABOTAGE<br />

As to the calls for cabotage to<br />

be abolished, as it is a form of<br />

protectionism, I say, “show me nation<br />

that doesn’t protect its shipping<br />

industry”. The nations that provide<br />

the ships to carry international cargos<br />

all incentivise their industry – in many<br />

cases to an extreme extent. The effect<br />

is precisely the same as protectionism,<br />

or cargo reservation. One person’s<br />

incentive is another person’s subsidy.<br />

There is no such thing as a level<br />

playing field in shipping – everyone is<br />

protected somehow, it’s just a matter<br />

of how. Tax breaks, international<br />

employment arrangements and<br />

other incentives go unremarked upon<br />

while cabotage or cargo reservation<br />

appear with flashing neon headlines.<br />

Australian shipping businesses don’t<br />

want cabotage necessarily, but they<br />

do want an equivalent to give them<br />

half a chance at competing with<br />

other nations that incentivise and/or<br />

subsidise their industry in their own<br />

country. As contributors to the national<br />

economy and employers of Australians<br />

both on shore and at sea, it makes<br />

sound economic sense to ensure these<br />

businesses have that opportunity.<br />

The opportunity still exists for<br />

Australia to choose what role we want<br />

our maritime industry generally, and<br />

coastal shipping sector in particular, to<br />

play. We are a maritime nation and we<br />

owe it to ourselves to retain some level<br />

of indigenous capability. To do this, we<br />

require strategic maritime skills to make<br />

our ports and blue highway workable<br />

and a few critical assets that can both<br />

train these people and be deployed as<br />

and when needed in the interests of<br />

Australian and its citizens.<br />

The government can and should<br />

provide the vision and the environment<br />

to make this happen and the industry<br />

players can and should be pragmatic in<br />

their support.<br />

Jim Wilson<br />

30<br />

First published in 1891<br />

July 2018 thedcn.com.au


PREVIOUS FAILURES<br />

Captain Pelecanos said some previous<br />

attempts to run coastal shipping<br />

operations in Australia failed because<br />

people “went into it went in with their<br />

eyes shut”.<br />

“They didn’t really understand ship<br />

costs and ship operations. They were a<br />

bit optimistic in what they thought they<br />

believed would happen,” he said frankly.<br />

“I don’t think they were practical.<br />

I don’t want to be critical, and I take<br />

my hat off to anyone who’s done it, but<br />

obviously we didn’t want to make the<br />

same mistakes.”<br />

In terms of their feasibility study,<br />

he said he and Captain Gallagher were<br />

qualified to conduct one, with Denis<br />

having an honours degree in economics<br />

and law and Captain Pelecanos having a<br />

graduate diploma in business shipping.<br />

“I’ve done a number of ship feasibility<br />

studies,” Captain Pelecanos said.<br />

A PASSION FOR SHIPPING<br />

Captain Pelecanos said the geography of<br />

Australia was key.<br />

“You have got a country with 10,000-<br />

mile coastline and all of its domestic<br />

“Protectionism created an environment where<br />

there were huge problems between unions and<br />

management. The environment was one of poor<br />

attitudes on both sides.”<br />

cargo is carried by road and rail,” he said.<br />

“But road and rail have all sorts of<br />

associated problems.”<br />

He noted past governments backed<br />

road and rail as part of efforts to open up<br />

the country.<br />

Then, the Navigation Act was<br />

introduced with a view to protect<br />

Australian shipping.<br />

“But, that caused issues. Protectionism<br />

created an environment where there<br />

were huge problems between unions and<br />

management.<br />

“The environment was one of poor<br />

attitudes on both sides,” Captain<br />

Pelecanos said.<br />

“I think those attitudes stemmed from<br />

the fact there was this protectionism and<br />

ultimately it led to the demise of coastal<br />

shipping. The demise of coastal shipping<br />

has poorly served the country.”<br />

Captain Pelecanos noted that most<br />

of Australia’s population live close to<br />

the sea, albeit, cargo is moved around<br />

the coast on road and rail, which “just<br />

makes little sense”.<br />

“When you look at economies of<br />

scale, when you look at the costs of road<br />

maintenance and rail maintenance<br />

compared with the cost of maintaining<br />

an ocean and the environmental impact<br />

of moving freight by the three modes, it<br />

is just incredible,” he said.<br />

WHERE ELSE BUT QUEENSLAND?<br />

Captain Pelecanos, who lives in<br />

Brisbane, and Captain Gallagher (based<br />

in Townsville) have chosen to make the<br />

Sunshine State front and centre of their<br />

audacious business plans.<br />

thedcn.com.au<br />

July 2018<br />

31


COASTAL SHIPPING<br />

Above: Captain Steve Pelecanos, managing<br />

director, Hermes Maritime<br />

“Queensland is the most decentralised<br />

state,” he said.<br />

“The Queensland coast is serviced by<br />

the Bruce Highway where governments<br />

have historically pumped money into<br />

keeping it maintained.”<br />

He also noted the railway lines in<br />

Queensland are losing money and<br />

are heavily subsidised by the state<br />

government.<br />

“We found people who moved cargo<br />

up and down the Queensland coast had<br />

little choice – moving cargo by truck is<br />

expensive, moving cargo by rail is less<br />

expensive but poor service.”<br />

Their plan is to begin operations with<br />

a Brisbane –Townsville shuttle.<br />

“We want to get the company in,<br />

get our procedures in play and iron<br />

out any difficulties. A good reason we<br />

are looking at Brisbane – Townsville<br />

is that Townsville is a hub for North<br />

Queensland,” he said.<br />

“In extreme weather events, you have<br />

got rail washout, you have got closures to<br />

the Bruce Highway and Townsville and<br />

the north gets cut off.<br />

“Once the cyclones have passed<br />

there’s a backlog of cargo that takes<br />

months to clear.”<br />

“By adding a shipping service local<br />

communities can keep going,” he said.<br />

“Part of our strategy in sourcing cargo<br />

is to approach those companies that have<br />

historically suffered or been price-gouged<br />

as a result of extreme weather events.”<br />

WHY NOW?<br />

Captain Pelecanos said a depressed global<br />

shipping market made it an opportune<br />

time to secure a ship, with chartering<br />

costs low.<br />

He also noted studies suggesting that<br />

from 2015 to 2035 the domestic freight<br />

task is likely to grow 3% year on year.<br />

“When you think about that, that<br />

means in order to accommodate that<br />

doubling of the freight task, you have got<br />

to double the number of trucks and double<br />

the number of rail freight,” he said.<br />

“The Bruce Highway and metropolitan<br />

transport corridors can’t cope with the<br />

trucks that we’ve got now. Can you just<br />

imagine doubling it?<br />

“On top of that, trucking and rail now<br />

costs the government annually $26.3bn<br />

to maintain road and about $13bn to<br />

maintain rail.”<br />

He noted also the average age of truck<br />

drivers is increasing.<br />

“The average age of the truck driver is<br />

61. Trucking companies just can’t get the<br />

drivers for long haul as the truck driver<br />

wants to get home every night,” he said.<br />

“Even if trucking companies<br />

double the number of trucks to cope<br />

with (the added freight task), they can’t<br />

get the drivers.”<br />

THE ROLE OF UNIONS<br />

Captain Pelecanos believes the unions<br />

and Hermes are on the same page.<br />

“The maritime unions have suffered<br />

a lot in recent years with job losses and<br />

loss of members.<br />

“We find they are very business-like<br />

now,” he said.<br />

“It’s fair to say, not only the unions,<br />

but everyone in the maritime sector<br />

has learnt the lessons of the past. I<br />

think there is a will now, on behalf<br />

of everyone involved in the shipping<br />

industry… to move on and develop<br />

a coastal shipping service that can<br />

properly serve the nation.”<br />

COASTAL SHIPPING: FAST FACTS<br />

• There are currently 50 vessels with<br />

a coastal shipping General Licence<br />

• Eight ships that work in/across<br />

Bass Strait<br />

• Five dry bulk carriers<br />

• Five expedition cruise ships<br />

• One research vessel<br />

• Thirty-one servicing Northern<br />

Australia<br />

• Some companies that currently<br />

operate in this space include Toll,<br />

Searoad Shipping and Bass Island<br />

Lines (a subsidiary of TasPorts,<br />

the Tasmanian governmentowned<br />

ports operator)<br />

• Examples of services that came and went<br />

include Agility Shipping, an operation<br />

that moved cargo on Bass Strait in 2010-<br />

11 before ceasing operations. Its vessel,<br />

the Andrea, suffered technical problems<br />

and competition with existing operators<br />

made the business of making money<br />

difficult<br />

• Changes introduced by the former Laborgovernment<br />

of Julia Gillard (and driven<br />

by then infrastructure minister Anthony<br />

Albanese) in 2012 aimed to revive both<br />

coastal and Australian-flagged shipping,<br />

but (and the reasons are contested)<br />

failed to have the desired impact<br />

• In an interview earlier this year to mark<br />

his retirement, former ANL manager<br />

director John Lines said he would love<br />

to have run a coastal service in Australia<br />

Source: MIAL and DCN archives<br />

Steve Pelecanos<br />

32<br />

First published in 1891<br />

July 2018 thedcn.com.au


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TRANSFER<br />

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you to create value at every handover.<br />

Through this approach we help our customers reduce inventory costs and increase delivery precision<br />

from factory to dealer. Find out more about how we can create value together at www.2wglobal.com


RO-RO & CAR CARRIERS<br />

The<br />

Ro-Ro road<br />

to<br />

success<br />

Ro-ro is on the rise in Australia – vehicles and equipment<br />

for mining and construction are boosting demand<br />

for services, writes Ian Ackerman<br />

RO-RO LINERS ARE INCREASINGLY<br />

busy in Australia, driven by the decline of<br />

the local car manufacturing sector, as well<br />

as an uptick in renewable energy projects<br />

in Queensland and South Australia.<br />

Both Höegh Autoliners and Wallenius<br />

Wilhelmsen Ocean have boosted their<br />

ro-ro services from Europe and North<br />

America.<br />

NEW CALLS<br />

WW Ocean recently added a monthly<br />

call to Adelaide and Höegh has boosted<br />

its direct service to Australia and New<br />

Zealand from the US and Mexico,<br />

offering two sailings per month.<br />

The service already calls into Brisbane,<br />

Fremantle, Melbourne and Port Kembla,<br />

with the extended port coverage aiming<br />

to support the agriculture and mining<br />

sectors, which are expected to grow.<br />

South Australia already has sizeable<br />

natural gas fields and mines, so with<br />

vessels calling directly into Adelaide,<br />

equipment and machinery for these<br />

developments can be positioned faster<br />

and cheaper than using inland haulage.<br />

The same could be said for the<br />

burgeoning renewable energy sector<br />

in the state; these regular calls at<br />

Adelaide will make it easier to position<br />

construction equipment and material to<br />

support renewable energy developments.<br />

WW head of Oceania sales Paul<br />

Johnson tells Daily Cargo News its vessel<br />

Salome would be the first vessel on this<br />

service calling at Adelaide in mid-July.<br />

“That brings our total calls to four<br />

vessels on that trade,” he says. “We have<br />

four vessels coining in from the west,<br />

so we have about eight or nine vessel<br />

calls per month coming through all<br />

Australian ports except for Adelaide,<br />

which will just get one a month.”<br />

Mr Johnson says it has been quite some<br />

time since WW has called at Adelaide.<br />

“We haven’t had a vessel in there<br />

for a number of years,” he says. “At the<br />

Höegh Autoliners<br />

34<br />

First published in 1891<br />

July 2018 thedcn.com.au


Höegh Target berthed at Melbourne<br />

moment, we’ve been bringing vehicles<br />

into Melbourne and having them<br />

motored across, so adding Adelaide in<br />

now will alleviate that necessity.”<br />

Meanwhile, Höegh area sales manager<br />

for Oceania Brendan Wallis tells DCN<br />

he has seen quite a bit of pent-up<br />

demand for options in the trade, hence<br />

its increase of frequency in its North<br />

America to Oceania route.<br />

“We’ve been very happy with the<br />

reception, and we’re glad to see how it’s<br />

growing voyage by voyage,” he says.<br />

While the automotive trades make up<br />

the backbone of the cargo on the route,<br />

the range of cargo moved in the ro-ro<br />

trades is quite diverse, Mr Wallis says.<br />

“There’s a real mix of agricultural,<br />

construction, breakbulk, it’s quite a diverse<br />

cargo range, but in general, we at Höegh<br />

see good demand and opportunities<br />

for agricultural cargo. There’s an<br />

ongoing growth in civil construction in<br />

Australia, and constant demand for civil<br />

construction equipment.”<br />

Mr Johnson echoes the sentiment,<br />

saying WW’s automotive trade is strong,<br />

but mining and construction equipment<br />

has been very strong this year.<br />

“We’ve seen a bit of a replacement<br />

cycle occurring, with new machinery<br />

coming out of Europe and North<br />

America,” he says. “Mining and<br />

construction has been the big increase<br />

this year, but how long it will continue<br />

for, we’ll just have to wait and see.”<br />

Mr Johnson says he’s keeping his ear<br />

to the ground about what’s happening in<br />

the mining sector, and WW would look<br />

at adding ports if there was a need to<br />

support inbound units in Queensland.<br />

“We’re also looking at potential<br />

opportunities on how we get cargo in<br />

closer to mine sites on the west coast<br />

as well. Obviously, our vessels are too<br />

big to call at the likes of Dampier and<br />

those ones, and [there is] quite a big road<br />

transit from Fremantle north, so we’re<br />

thedcn.com.au<br />

July 2018<br />

35


“We do get various breakbulk – could be<br />

anything from swimming pools to steel,<br />

anything really. If we can get it on a ship,<br />

we’ll take it.”<br />

constantly keeping our ear to the ground<br />

with what’s happening with the market.”<br />

COASTAL SHIPPING<br />

Domestic shipping has always been a<br />

significant part of the ro-ro trade in<br />

Australia, with significant trade going in<br />

both directions.<br />

Höegh’s Mr Wallis says the company<br />

had always done coastal shipping from<br />

east to west.<br />

“We’ve had a lot of success and a lot<br />

of support with that trade, and now<br />

with the new service we’re also offering<br />

coastal shipping coming from east to<br />

west,” he says. “We’re offering it in both<br />

directions now.”<br />

WW does a roaring coastal trade as<br />

well. “It’s been pretty good business –<br />

we’ve been doing two, sometimes three<br />

vessels east to west, it keeps us busy,”<br />

Mr Johnson says.<br />

“There is a lot of repositioning of<br />

automotive equipment domestically;<br />

we also get various breakbulk cargoes –<br />

could be anything from swimming pools<br />

to steel, anything really. If we can get it<br />

on a ship, we’ll take it.”<br />

BIOSECURITY<br />

The mighty nuisance<br />

that has been caused by that tiny, odious<br />

insect known as the brown marmorated<br />

stink bug has wreaked seasonal havoc on<br />

supply chains, and the ro-ro sector is not<br />

immune.<br />

Mr Wallis confirms one of the major<br />

biosecurity issues the sector faces is from<br />

that malodorous bug, particularly in<br />

cargo coming from the US and Europe.<br />

“Last year it became an issue out of<br />

Italy and therefore out of our European<br />

load ports,” he says, “because it’s a cargo<br />

origin, not a port origin issue”.<br />

“We got through the season without<br />

any real incident, which is great, and a lot<br />

of vigilance from all of our booking staff,<br />

operational staff, port captains, etc.”<br />

However, Mr Wallis says when one<br />

carrier has issues with biosecurity, it can<br />

impact on all the other carriers in the<br />

trade, pointing to a series of events this<br />

past summer when vessels were blocked<br />

from berthing at Auckland because of<br />

stink-bug infestations.<br />

“While we didn’t have anything<br />

impacting on us directly, I think everyone<br />

Wallenius Wilhelmsen’s Salome<br />

in the trade felt some major issues around<br />

transiting Auckland Port,” he says.<br />

“The flow-on effects are still felt now,<br />

with delays getting through Auckland,<br />

because the bottleneck just moves<br />

further up the supply chain with the<br />

processers, the trucking companies, etc.”<br />

With the Northern Hemisphere<br />

summer just beginning to heat up, stinkbug<br />

season is nearly upon us again.<br />

Mr Wallis says Höegh has robust<br />

procedures in place, and he is pleased<br />

about how the company managed last<br />

year’s stink-bug season.<br />

“We’re eagerly awaiting the new<br />

guidelines from the Department of<br />

Agriculture so we can make sure we’re<br />

compliant and ready to go,” he says.<br />

THE FUTURE<br />

Technological developments in vehicles<br />

are progressing swiftly, around the<br />

world, with electric and autonomous<br />

vehicles shaping up to be the way of the<br />

future. However, Mr Johnson explains<br />

electric vehicles are looking slow on<br />

Höegh Autoliners/Wallenius Wilhelmsen<br />

36<br />

First published in 1891<br />

July 2018 thedcn.com.au


RO-RO & CAR CARRIERS<br />

Flensburger Schiffbau-Gesellschaft<br />

the uptake in Australia, and they don’t<br />

require much special treatment from<br />

ro-ro liners.<br />

“Certainly for the electric vehicles, a<br />

car is a car, and we don’t need to class<br />

them as dangerous goods on our vessels,<br />

not like when they go into containers,”<br />

he says.<br />

“Australia has such a vast import<br />

base, everyone’s talking and looking at<br />

[electric vehicles], but we’re probably<br />

a little bit behind where everyone else<br />

is globally. For us, there’s no real big<br />

market for it at the moment, but we’re<br />

definitely reviewing how we can support<br />

it better.”<br />

Mr Johnson says one of the things<br />

WW is looking at is how to make sure<br />

batteries don’t get run down on a<br />

40-odd-day transit from Europe.<br />

THE IMPENDING SULPHUR CAP<br />

One issue that the entire shipping<br />

industry is looking towards is the IMO’s<br />

looming marine fuel sulphur cap, which<br />

will require all marine fuel to have a<br />

sulphur content of 0.5% or less.<br />

Due to come into force in 2020, it is<br />

causing consternation in the industry,<br />

and ro-ro operators are not immune.<br />

However, many are taking action,<br />

ordering ships powered with cleaner<br />

fuel, such as LNG, or fitting scrubbers to<br />

existing fleets.<br />

A spokesperson for Höegh Autoliners<br />

says the company had reduced its fuel<br />

consumption and hence emissions per<br />

shipped cargo unit and nautical mile, by<br />

about 20%.<br />

“By complying with the global sulphur<br />

regulations in 2020, our fleet will<br />

reduce its environmental impact even<br />

further, meaning that our customers<br />

and the society will benefit from cleaner<br />

transportation,” the spokesperson says.<br />

“Our plan is to bunker low sulphur<br />

fuel and not to install scrubbers, at least<br />

not in the initial stage. As the majority<br />

of the world fleet will not have scrubbers<br />

in place by 2020, it is imperative that<br />

the refineries must secure enough low<br />

sulphur fuel before the end of 2019.”<br />

WW’s Mr Johnson says the IMO<br />

sulphur cap will be a big deal and WW<br />

is also looking closely at how to comply<br />

with the new regulations.<br />

Whatever happens on 1 January<br />

2020, ro-ro vessels will still be calling at<br />

Australian ports, delivering the things<br />

that help roll the economy along.<br />

NEW TASMANIAN SPIRITS ON THE WAY<br />

The two new ro-pax vessels are to be powered by LNG<br />

Tasmania is about to get two new Spirits, after ferry operator TT-Line and<br />

European shipbuilder Flensburger Schiffbau-Gesellschaft (FSG) recently signed a<br />

€438m contract for the design and construction of the new vessels.<br />

The two new vessels are to be powered by LNG, a cleaner burning fuel than<br />

standard heavy fuel oil, with much lower emissions.<br />

With work expected to start soon, the two new ships are expected to begin plying<br />

the waves of Bass Strait after they are completed in 2021.<br />

FSG CEO Rüdiger Fuchs said he was very pleased that FSG was selected by the TT-<br />

Line Supervisory Board in competition against a number of international shipyards<br />

to design and build the new Spirits of Tasmania.<br />

“The two ships are specially developed for use in the rough seas of Bass Strait<br />

and feature the latest technology for eco-efficiency,” Mr Fuchs said.<br />

TT-Line chairman Mike Grainger said: “FSG was endorsed by the Board after the<br />

company short listed a number of international shipyards to build the new tailormade<br />

vessels”.<br />

“The new, purpose-built vessels will also be able to carry increased freight<br />

volumes when compared to the current Spirit of Tasmania vessels,” Mr Grainger said.<br />

“The two ships are specially developed for use in<br />

the rough seas of Bass Strait and feature the latest<br />

technology for eco-efficiency”<br />

“In preparing a business case for the Tasmanian government, TT-Line<br />

exhaustively assessed vessel types and fleet configurations to determine the most<br />

suitable vessels to operate daily crossings on Bass Strait,” he said.<br />

“The Board is pleased with the final terms of the contract as negotiated between<br />

the parties since signing a letter of intent last calendar year.”<br />

The TT-Line board and the company’s executive team of the company worked<br />

closely with the Tasmanian government on vessel replacement through the Ships<br />

Replacement Sub-Committee of Cabinet, chaired by the Minister for Infrastructure,<br />

Rene Hidding, and including Premier Will Hodgman and Treasurer Peter Gutwein.<br />

FSG has built more than 750 vessels since it was established in 1872, and it is<br />

currently building cruise ferries for Irish Ferries and Brittany Ferries, which are<br />

similar in design to the new Spirits.<br />

The Company has also recently designed<br />

and built ro-pax ferries for Canadian BC<br />

Ferries and Scottish Caledonian MacBrayne.<br />

FAST FACTS<br />

Next Generation<br />

Spirit of Tasmania<br />

An artist’s impression of the next generation Spirit of Tasmania<br />

LENGTH: 212 metres<br />

BEAM: 31.5 metres<br />

PASSENGERS & CREW: 2000<br />

PASSENGER VEHICLES: 600<br />

CABINS: 284<br />

RECLINERS: 195<br />

thedcn.com.au<br />

July 2018<br />

37


RO-RO & CAR CARRIERS<br />

TRAMS BY SEA<br />

An innovative system allowed new trams to be shipped from Germany to Brisbane<br />

How to get a tram from Germany to the Gold Coast? On a<br />

ro-ro vessel, of course.<br />

Two 43.5-metre Bombardier trams were recently shipped<br />

from Germany to Queensland on a Höegh vessel, using<br />

rolltrailers.<br />

However, there is a problem with using normal rolltrailers,<br />

as they are only 24.4 metres long. So, why not just connect two<br />

trailers end to end?<br />

Höegh global breakbulk operation manager Geir Paulsen<br />

said the company came up with the extended rolltrailer<br />

concept, connecting the two trailers with a “Höegh Bridge”.<br />

“These have been tested and approved and the prototype<br />

was used for this operation,” he said.<br />

“The railcars were loaded on a special truck trailer at the<br />

factory in Austria and driven directly on board Höegh Traveller<br />

in Bremerhaven. On board the vessel, the trams were<br />

pulled from the 50-metre-long truck trailer to the extended<br />

rolltrailer concept.”<br />

Mr Paulsen continued, saying, “with the success of this<br />

shipment it proves that our development in customised<br />

solutions offer higher quality and less risk for new types of<br />

cargo which would not have normally been loaded on a ro-ro<br />

vessel in the past”.<br />

Höegh area sales manager for Oceania Brendan Wallis said<br />

generally the company had been seeing good utilisation of<br />

specialised breakbulk equipment.<br />

“We’ve invested heavily in specialised equipment to carry<br />

more breakbulk cargo on a ro-ro solution, which has really<br />

worked well, and we’ve seen good success, especially in<br />

the rail and energy segments,” he said.<br />

In addition to the Gold Coast tram shipment, Mr Wallis said<br />

the company had carried out other cargo movements with<br />

creative uses of rolltrailers.<br />

“We’ve also done some ultra-wide rolltrailers where we join<br />

two of them side-by-side and load and discharge them at the<br />

same time using a specialised gooseneck,” he said.<br />

“Also, we have some ultra-low mafi trailers, which allow us to<br />

load higher cargo on our vessels.”<br />

An example of this is a colossal drum transported from<br />

Spain to Australia last year.<br />

Röhlig Spain needed to transport a 90-tonne rotary drying<br />

machine drum to Port Kembla. With a diameter of 7.25 metres,<br />

it was too wide to put on a single rolltrailer (which have a<br />

diameter of 2.6 metres).<br />

Höegh had developed a double mafi concept that had been<br />

tested in the US, with the prototype being used to transport a<br />

7.2-metre-wide catamaran from Antwerp to Brisbane.<br />

Mr Paulsen said the two rolltrailers were put together using<br />

a coupling kit system<br />

“The system comprises of an easy to use system, which<br />

locks two 40-foot rolltrailers side by side,” he said. “A twin<br />

gooseneck was also developed and produced on a Höegh<br />

design, and this ensures the tug master has a firm hold of the<br />

rolltrailer at all times during transport.”<br />

The trams were transported all in one piece on special trailers<br />

38<br />

First published in 1891<br />

July 2018 thedcn.com.au


2018 Australian<br />

Shipping & Maritime<br />

Industry Awards<br />

Thursday 22 November 2018<br />

The Grand Ballroom, Sofitel Sydney<br />

Join us for the 23rd annual Australian<br />

Shipping and Maritime Industry Awards<br />

and help celebrate the shipping and<br />

maritime industry achievers.<br />

Have your say and nominate now.<br />

Sponsorships still available!<br />

MAJOR HOST SPONSOR<br />

Contact Lloyd O’Harte,<br />

on 0414 272 574 or email<br />

lloyd.oharte@thedcn.com.au<br />

dcnawards.com.au


NEW TRE<br />

in waterfront<br />

PORT & CONTAINER EQUIPMENT<br />

The waterfront is becoming<br />

ever-more sophisticated<br />

40<br />

First published in 1891<br />

July 2018 thedcn.com.au


NDS<br />

automation<br />

Sharing of technology is the key to<br />

the future in the port equipment<br />

sector, writes David Sexton<br />

BUSINESSES WORKING IN THE<br />

area of port logistics should be prepared<br />

to share technology in order to facilitate<br />

future growth.<br />

That’s the view of Kalmar Asia-Pacific<br />

senior vice-president Peter McLean.<br />

The Singapore-based (but decidedly<br />

Australian) executive was in Melbourne<br />

for the Global Shippers Forum where he<br />

spoke with Daily Cargo News over lunch.<br />

We asked Mr McLean if he saw much<br />

room for growth in the field of portside<br />

technology.<br />

“I think there is a lot more [room].<br />

Automated terminals are no different to<br />

our smart phones or the world we live<br />

in in any way. It will always continue to<br />

change,” Mr McLean told DCN.<br />

“We’ll get more productivity. We’ll<br />

get faster, more simple, ways to connect<br />

different systems.<br />

“I think that can be achieved by all<br />

of us working together more. I think<br />

The Kalmar Fastcharge<br />

in action<br />

thedcn.com.au<br />

July 2018<br />

41


PORT & CONTAINER EQUIPMENT<br />

more… For example, we recently released<br />

a product called Kalmar Key.<br />

“So, we’ve opened our doors,<br />

welcoming people who have got other<br />

technology and want to link to ours<br />

where we will build the bridge. We will<br />

openly build the bridge so that we share.”<br />

“In five minutes you can bring it up to<br />

a very sensible, high-level work charge.<br />

It’s not fully charged, but it can be 60%<br />

to 80% charged within five minutes.<br />

“It’s that sort of technology that<br />

can be improved all the time as well as<br />

battery technology.”<br />

Above: Peter van Duyn, director, ICHCA<br />

Australia<br />

we need to follow the lead of the car<br />

industry. If you look at the alliances in<br />

the car industry, I think they are a good<br />

example of where the port business and<br />

the container handling and the freight<br />

business should go.”<br />

Mr McLean said the various<br />

competitors should “drop the facades and<br />

work together more behind the scenes”.<br />

“Of course we can all have our brand,<br />

but there is a large amount of technology<br />

and skill sets that available if we share<br />

AUTOMOTIVE EXAMPLES<br />

Mr McLean noted examples of similar<br />

co-operation that can be seen in the<br />

automotive industry.<br />

“I think we should follow the lead of<br />

the Renault – Nissan alliance and other<br />

companies where they sink lots and<br />

lots of money into these backroom-type<br />

businesses,” he said.<br />

“They build engines and build<br />

transmissions and share technology that<br />

they put on their own products and sell<br />

their own brand.”<br />

Asked about the drivers of change, Mr<br />

McLean said it was sustainability.<br />

“We’re such huge consumers of<br />

energy. Our [humanity’s] pollution is out<br />

of ratio…” he said.<br />

He spoke of developments in electric<br />

automatic guided vehicles (AGVs).<br />

“An AGV is not new to the industry,<br />

but the real release was the fast charge…<br />

REGENERATION<br />

For some of us, regeneration is<br />

something we once associated with<br />

episodes of Dr Who.<br />

However, Mr McLean said this was<br />

also entirely relevant to port technology.<br />

“Regeneration is a big thing in our<br />

industry… That regeneration of power<br />

within our business going back into the<br />

grid or back into our equipment,” he said.<br />

“That is another big thing we’re<br />

working on. We’ve got some of it<br />

perfected, but there is a long way to go.”<br />

DCN asked Mr McLean how<br />

stevedores would compete when<br />

automated technology became<br />

ubiquitous; his answer was in “service”.<br />

“We’ve seen this in Australia.<br />

Australia has a very high degree of<br />

automation. There’s the saying ‘keeping<br />

up with the Joneses’ or ‘keeping up with<br />

your neighbour’.<br />

Shutterstock<br />

42<br />

First published in 1891<br />

July 2018 thedcn.com.au


REDUCED EMISSIONS A FEATURE OF NEW RAIL-MOUNTED GANTRIES<br />

Kalmar is supporting expansion at Rotterdam Short Sea Terminals with order for customised RMGs<br />

Reduced CO2 emissions is a key feature of rail-mounted<br />

gantry cranes set to be delivered to Rotterdam Short Sea<br />

Terminals in Europe during 2019/20.<br />

As the world seeks to become more sustainable, so this<br />

trend is affecting the nature of port machinery.<br />

Kalmar (part of Cargotec) has signed a contract with RST to<br />

supply two Kalmar RMG cranes described as having remote<br />

control and extensive customisation.<br />

“They are powered by highly efficient electric drive units<br />

that enable exceptionally smooth operation and produce zero<br />

emissions at source,” Kalmar said in a statement.<br />

“They can be supplied by either a cable reel or busbar setup.”<br />

The order was booked during Cargotec’s 2018 second<br />

quarter order intake.<br />

The first crane is to be delivered in the fourth quarter of<br />

2019 and the second during first quarter of 2020.<br />

Rotterdam Short Sea Terminals (part of the massive Port<br />

of Rotterdam) is understood to be the largest short sea<br />

shipping hub in Europe, with more than 320 employees<br />

working 24-hours a day to process more than 800,000<br />

containers a year.<br />

The terminal has undergone considerable expansion in<br />

recent years in keeping with increasing demand, and Kalmar<br />

has been closely involved.<br />

Two wide-span monobox Kalmar STS cranes are said to<br />

be nearing completion following an order announced in the<br />

second quarter of 2017.<br />

Kalmar says its RMGs are ideal for high-density stacking<br />

in container terminals and offer design flexibility to meet<br />

customer requirements.<br />

The two cranes supplied to RST are to have a lifting capacity<br />

of 41 tonnes and feature a rotating trolley.<br />

Their wide 54-metre span and double cantilever is expected<br />

to enable the cranes to cover a large part of the yard, while<br />

their high-speed operation will help to maximise productivity<br />

at the terminal. Furthermore, the RMGs are to share many<br />

common components with the Kalmar STS cranes currently<br />

being built, which should support smoother and more costeffective<br />

maintenance activities.<br />

RST manager, technical department and projects, Cees van<br />

Pelt, spoke effusively about the Kalmar relationship.<br />

“Kalmar has been a reliable partner for many years, so<br />

naturally we turned to them to support our ongoing expansion<br />

plans,” Mr van Peelt said.<br />

“The key factor for us is that the Kalmar RMG solution is not<br />

‘one-size-fits-all’; instead, we were able to work closely with<br />

their expert team to develop a highly customised solution that<br />

meets our operational needs and demands.”<br />

Kalmar vice president, intelligent crane solutions, Ilkka<br />

Annala, said they were proud of their RST connections,<br />

“Our successful cooperation with RST is something we<br />

are very proud of, so we are pleased to be able to announce<br />

another order that further strengthens the relationship<br />

between our two organisations,” Mr Annala said.<br />

“The design flexibility that these new RMGs offer is all down<br />

to the hard work and dedication of the fantastic team we<br />

have at Kalmar, who are truly committed to delivering tailored<br />

solutions that add real value for our customers. This is already<br />

the fourth RMG order we have received since the product was<br />

launched in September 2017.”<br />

RSRT<br />

Europe is on the lookout for<br />

more automated solutions<br />

thedcn.com.au<br />

July 2018<br />

43


PORT & CONTAINER EQUIPMENT<br />

“When Patricks years ago put<br />

Fisherman Island into place, the pressure<br />

really was on DPWA to automate their<br />

terminal and offer a consistent service.<br />

“But then the pressure [was on] DPWA<br />

to do the next one as you go around the<br />

chain of ports in Australia and the same<br />

with Patricks. So it self-generates because<br />

the shipping lines need consistency.”<br />

Mr McLean continued, saying,<br />

“Shipping lines have to have that<br />

[consistency] to be efficient and we want<br />

goods that we’ve ordered… so the key to<br />

stevedores is building a very consistent,<br />

reliable, fast service for their clients.”<br />

Meanwhile, Maersk Line Oceania<br />

operations manager Stuart Jennings said<br />

in a high-cost country such as Australia,<br />

productivity and efficiency in every<br />

aspect of the whole cargo supply chain<br />

must be maximised.<br />

“Maersk Line welcomes close<br />

collaboration across the entire ecosystem<br />

of the supply chain – customers, shipping<br />

lines, port operators, container depots,<br />

freight forwarders and authorities - to<br />

ensure Australia remains competitive in<br />

the global marketplace,” he said.<br />

“We see plenty of opportunity for<br />

key stakeholders, both in Australia<br />

and globally, to work jointly on the<br />

development of digital solutions which<br />

support future industry efficiencies and<br />

customer benefits.”<br />

Above: Peter McLean, Kalmar Asia-Pacific<br />

senior vice-president<br />

Port operators and stevedoring companies are checking out the<br />

options available to them in terms of automated technology<br />

A recent trip to Webb Dock in<br />

Melbourne provided some insights into<br />

the future of automated technology on<br />

the waterfront.<br />

It was there that visitors were able<br />

to get a first-hand look at the Easy Mile<br />

EZ-10 vehicle, a driverless shuttle that<br />

allows people to safely move around<br />

the docks.<br />

The EZ-10 was in Melbourne for trials<br />

involving the EasyMile company and<br />

Melbourne International RoRo and<br />

Automotive Terminal.<br />

EasyMile business development and<br />

project delivery manager for the Asia<br />

Pacific, Adwait Kale, told Daily Cargo<br />

News a little about the concept.<br />

He explained how the first three<br />

prototypes were commercialised<br />

in Singapore in 2014 and are still in<br />

operations ​in Gardens by the Bay.<br />

The machines are manufactured<br />

by a car and minibus manufacturing<br />

company Ligier in the south of<br />

France. EasyMile in turn provided the<br />

automation technology.​<br />

EASY MILE SHUTTLE<br />

OFFERS A SNAPSHOT<br />

OF THE FUTURE<br />

Mr Kale said the cost in Australia to<br />

buy an EZ-10 would be around $360,000<br />

plus importation costs.<br />

For hiring, the cost would vary, but<br />

he mentions it would be around $8000<br />

a month for a five-year lease.<br />

The EZ 10 carries 14 people and<br />

those who visited MIRRAT during the<br />

recent demonstration got a good feel<br />

for its steering and braking capabilities.<br />

MIRRAT head of commercial and<br />

stakeholder management Jed Smith<br />

said they partnered with EasyMile to<br />

better understand the technology, how<br />

it works, how it performs in a dynamic<br />

environment and how they could design<br />

yard infrastructure to cater for such<br />

vehicles in the future.<br />

“The real benefit of these trials for<br />

us is to gain some exposure to this<br />

technology and begin building our<br />

knowledge on how it works and what<br />

are its requirements,” Mr Smith said.<br />

The unit and the EasyMile team<br />

arrived onsite on Tuesday, 5 June for<br />

three days of tests at MIRRAT.<br />

BLOCKCHAIN<br />

No article in 2018 would be complete<br />

without discussing blockchain, and Mr<br />

McLean said it did not yet keep him<br />

awake at night.<br />

“But again, it also is going to be part of<br />

our world,” he said.<br />

“It is something that we either will<br />

start to develop ourselves or we will<br />

partner with people; of course and that’s<br />

really what blockchain is all about as well.<br />

“So again it’s coming, and that’s why<br />

I think anyone who doesn’t open their<br />

doors and partner will be left behind in<br />

this industry.”<br />

ICHCA Australia director Peter van<br />

Duyn helped organise the Global Shippers<br />

Forum and agreed the trends influencing<br />

automation were of great significance.<br />

“Automation is very important, as<br />

labour costs are only going to go higher,”<br />

Mr van Duyn said.<br />

“But it’s also about safety. We’ve had<br />

incidents recently where people were hurt<br />

on the waterfront.<br />

“Had there been automation, you<br />

would have had damage but no injuries.”<br />

Mr van Duyn said automation<br />

would not necessarily be implemented<br />

everywhere overnight, but would happen.<br />

He noted Mr McLean’s comments<br />

about sharing technology.<br />

“It’s interesting because some<br />

companies may feel they have a<br />

commercial advantage, a bit like Tesla<br />

or Uber, and are reluctant to give up too<br />

much information,” he said.<br />

“But if there is some sharing of<br />

ideas there could be benefits for the<br />

waterfront overall.”<br />

Kalmar<br />

44<br />

First published in 1891<br />

July 2018 thedcn.com.au


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First published in 1891<br />

46<br />

July 2018<br />

thedcn.com.au


LOGISTICS & SUPPLY CHAIN<br />

Grand projects are<br />

transforming the<br />

supply chain in the<br />

nation’s north-west,<br />

writes Paula Wallace<br />

AMBITIOUS PROJECTS IN THE<br />

north-west are bringing about supplychain<br />

changes in parts of the country<br />

sometimes overlooked by those on the<br />

eastern seaboard.<br />

Sweeping change is underway at<br />

Broome with the business case being<br />

developed for a circa $100m investment<br />

in new marine infrastructure.<br />

Meanwhile, a project bankrolled by the<br />

Northern Australia Infrastructure Facility<br />

(NAIF) near Onslow is set to result in the<br />

construction of a multi-user infrastructure<br />

port and marine supply facility, providing<br />

fuel, waste management and logistics<br />

support to companies operating in the<br />

Carnarvon Basin.<br />

BROOME<br />

Kimberley Marine Support Base (KMSB)<br />

is the Western Australian private<br />

developer which is making plans to<br />

build a new floating wharf and on-shore<br />

infrastructure within the port of Broome.<br />

A floating wharf is seen as a potential<br />

solution for cruise ships wanting to access<br />

Broome during the extreme local tides<br />

which sometimes impede smaller ships<br />

from transferring passengers. New heavy<br />

lifting equipment would also expand the<br />

current capacity of the Port to handle the<br />

full range of oil and gas equipment.<br />

“It offers increased capacity for<br />

Broome at a time when it’s needed and<br />

has been identified in our masterplan,”<br />

Kimberley Port Authority chief executive<br />

Kevin Schellack said. “We see it working<br />

hand in hand.”<br />

The Port’s 50-year masterplan showed<br />

the current facility would need the<br />

support of additional infrastructure<br />

within five to 10 years, partly due to the<br />

increase in cruise shipping.<br />

Mr Schellack told Daily Cargo<br />

News they were a government trading<br />

enterprise without the capacity to raise<br />

all the money on their own.<br />

“We’re thrilled that a private company<br />

has come in, in line with our masterplanning,<br />

and suggests that it is going<br />

to build a $100m facility that will fulfil<br />

certain shortfalls we have identified,”<br />

he said.<br />

The lead investor with KMSB has<br />

port-development project experience in<br />

the Kimberley and Pilbara. The company<br />

predicts the Broome project could create<br />

250 construction jobs and up to 450<br />

operational jobs, as well as the existing<br />

jobs and services at the port.<br />

KMSB has until early in 2019 to build<br />

the business case for review by KPA and<br />

the government of Western Australia. If<br />

viable, KPA would then enter into a lease<br />

with the company and approvals would<br />

be sought to develop the land and seabed.<br />

KMSB’s Andrew Natta said Broome<br />

was “a fantastic resource offshore and<br />

onshore but the area needs to capitalise<br />

on it”.<br />

“In developing the business case we’ll<br />

be looking at the needs of the Kimberley<br />

Port Authority, the region and the<br />

market’s,” Mr Natta said.<br />

“Our intention is to have it all done<br />

within a year and go into construction<br />

by 2019, with completion of the project<br />

in 2021,” he said.<br />

This timing would be in line with a<br />

major project in the region that is due to<br />

commence operations in 2021.<br />

KPA is also aware of the billions of<br />

dollars of investment happening off the<br />

Kimberley coast by oil and gas operators.<br />

“We are encouraged by this<br />

opportunity to capture more of the<br />

on-shore benefits from this activity while<br />

also providing greater opportunities for<br />

cruise ship access into Broome,”<br />

Mr Schellack said.<br />

In terms of the infrastructure,<br />

KMSB is investigating the viability of<br />

constructing a floating wharf at the<br />

southern side of the current port facility.<br />

“There should be little if any dredging<br />

required,” Mr Schellack said. “They are<br />

looking at having a floating wharf with a<br />

700-tonne lifting capacity as a multiuser<br />

facility.”<br />

KPA is to working with the<br />

Department of Transport and the<br />

Department of Jobs, Tourism, Science<br />

and Innovation to develop the strategic<br />

benefits of the proposal with KMSB.<br />

The proponent is to take responsibility<br />

for the full range of engineering,<br />

environmental and heritage approvals.<br />

“We have been talking with the<br />

proponent to make sure there is good<br />

engagement with the local community<br />

and the full range of benefits are<br />

identified for Broome,” Mr Schellack said.<br />

Mr Natta said the developer planned<br />

to be consultative.<br />

“We won’t take one step without<br />

working with the port authority and the<br />

government, we will involve all relevant<br />

stakeholders,” he said. “We have to<br />

capitalise on what Broome has to offer –<br />

it’s a great location.”<br />

thedcn.com.au<br />

July 2018<br />

47


LOGISTICS & SUPPLY CHAIN<br />

The Port of Broome<br />

ONSLOW<br />

A project billed as the first to be<br />

bankrolled by the NAIF is another<br />

project set to get underway on Western<br />

Australia’s northern coast.<br />

Owned by a private company, the<br />

Onslow Marine Support Base (OMSB) is<br />

to receive a NAIF loan of up to $16.8m<br />

for a multi-user infrastructure port and<br />

marine supply project.<br />

The OMSB is to provide supply and<br />

support services for onshore and offshore<br />

businesses, such as logistics, fuel supply,<br />

waste management and construction and<br />

maintenance for companies operating in<br />

the Carnarvon Basin.<br />

NAIF chief executive Laurie Walker<br />

told DCN its loan would fund the second<br />

stage of the project with the deepening of<br />

the harbour channel by 5.5 metres (chart<br />

datum), thus allowing access for larger<br />

vessels.<br />

“It means that the whole project<br />

is much more useable by more cargo<br />

vessels,” she said.<br />

NAIF is partnering with National<br />

Australia Bank to finance the project,<br />

which helps meet its aim of encouraging<br />

private-sector investors to help build<br />

infrastructure for the benefit of northern<br />

Australia.<br />

“Obviously we’ve done an assessment<br />

that the growth will come and there’s an<br />

operator that’s been engaged… a credible<br />

operator that understands the industry<br />

and has committed to the project,” Ms<br />

Walker said.<br />

Ms Walker said one way NAIF was<br />

different from other financiers was it had<br />

to demonstrate a net public benefit from<br />

each of its investment decisions.<br />

“The benefit of this project is predicted<br />

to be in the region of $100m,” she said,<br />

adding that it was over the life of the<br />

ten-year loan,” she said.<br />

“This is based on the jobs that the<br />

project will create, reduced costs to<br />

businesses, and the time that logistics<br />

companies would have had on the road<br />

to get to and from Perth.<br />

Above: Kevin Schellack, chief executive of the<br />

Kimberley Ports Authority<br />

“It will also mean the maintenance of<br />

vessels can be done in the region rather<br />

than going to Singapore.”<br />

NAIF and OMSB say the loan has<br />

brought forward the development of the<br />

project by three to five years.<br />

“We have a mandatory criterion that<br />

there must be an indigenous engagement<br />

plan, and there are comprehensive<br />

guidelines around participation and<br />

employment,” Ms Walker said.<br />

“And, in this case, it will be targeted<br />

and appropriate for the region. There are<br />

strategies that the proponent committed<br />

to… and after speaking to indigenous<br />

leaders in the region, we are comfortable<br />

there is a good strategy in place.”<br />

When the NAIF board decided to invest<br />

in the OMSB, its investment mandate<br />

stated NAIF had to have a preference for<br />

the loan size to be a minimum of $50m<br />

and only 50% of the debt.<br />

Ms Walker said there likely would<br />

be at least three to five investment<br />

decisions made before the end of the<br />

2017-18 financial year.<br />

“We have now got a pipeline<br />

that’s building up and I expect that<br />

momentum to keep flowing,” she said.<br />

NAIF<br />

48<br />

First published in 1891<br />

July 2018 thedcn.com.au


INTERMODAL PROJECT A BOON FOR QLD BUSINESSES<br />

InterLinkSQ is about connecting the growing south-west region of<br />

Queensland to the Port of Brisbane and the international market<br />

DELAYS have occurred, but<br />

InterLinkSQ inland port construction is<br />

set to resume, general manager Blair<br />

Batts says.<br />

Mr Batts spoke with Daily Cargo News<br />

and explained how construction had<br />

been put on hold for a tunnel-lowering<br />

project initiated by Queensland Rail.<br />

But, with that out of the way, work<br />

on the facility near Toowoomba can<br />

resume.<br />

“We are targeting completion by late<br />

2019,” Mr Batts says.<br />

Developing in stages, with a<br />

capacity up to 250,000 TEU, the<br />

InterLink Global Logistics Centre is to<br />

provide opportunities for cold-store<br />

warehousing; grain and commodities<br />

storage and packing; rail maintenance<br />

and provisioning services; a container<br />

park including on-site upgrade and<br />

maintenance; and food processing.<br />

In addition to the 3km frontage along<br />

the existing West Moreton Rail Line,<br />

InterLinkSQ is positioned at the junction<br />

of three major highways and the eastern<br />

extent of the type-1 road train network.<br />

Government-accredited clearing and<br />

customs bonded facilities are planned<br />

to enable direct export of containerised<br />

product through to the Port of Brisbane<br />

via an IMEX port shuttle service.<br />

“This positions the InterLink Global<br />

Logistics Centre as a true inland port,”<br />

Mr Batts says.<br />

Proponents believe businesses are<br />

looking at InterLinkSQ because of its<br />

proximity to transport and logistics<br />

options.<br />

“InterLinkSQ is about putting freight<br />

movers and freight makers together,” Mr<br />

Batts says.<br />

“Businesses we engage with regularly<br />

are looking to future-proof their<br />

operations by having cost-effective<br />

transport options. The benefit of<br />

InterLinkSQ is that the closer you are to<br />

the rail hub the cheaper that option is.”<br />

Mr Batts says the response from<br />

companies in the region to the<br />

development has been “positive, albeit a<br />

little sceptical”.<br />

“This is understandable given the<br />

decline in rail volumes over the past 10<br />

years and the increase in productivity of<br />

the road based freight transport system.<br />

However, there is a concern that we<br />

currently have all our freight eggs in one<br />

basket with a road only system.<br />

“A competitive and efficient freight<br />

rail network is an absolute necessity for<br />

a robust and secure freight network to<br />

ensure the produce and goods from this<br />

region make it to the Port of Brisbane<br />

and export destinations via the most<br />

cost effective, efficient and safe path<br />

possible,” he says.<br />

InterLinkSQ sits at the junction of the<br />

Gowrie to Helidon section of the Inland<br />

Rail, and the border-to-Gowrie section.<br />

“It is the Gowrie to Acacia Ridge [in<br />

Helidon] section of Inland Rail, which<br />

provides the significant benefit to our<br />

region and community,” Mr Batts says.<br />

Above: Blair Batts, general manager of<br />

InterLinkSQ<br />

“It is an absolute imperative for our<br />

region that this section be prioritised by<br />

the federal government and delivered<br />

in the shortest possible timeframe,” Mr<br />

Batts explains.<br />

“The government has the opportunity<br />

to facilitate this outcome through the<br />

public-private partnership framework.”<br />

Currently, the Australian Rail Track<br />

Corporation is preparing the draft<br />

environmental impact statement<br />

for submission to the Queensland<br />

Coordinator General’s office.<br />

“We hope that this section of track<br />

could be operational by mid-2022 in<br />

line with the delivery program outlined<br />

in the business case,” Mr Batts says.<br />

Interlink<br />

InterLinkSQ is<br />

delivering an inland<br />

port, intermodal<br />

terminal and port rail<br />

shuttle<br />

thedcn.com.au<br />

July 2018<br />

49


LOGISTICS & SUPPLY CHAIN<br />

LINX IN THE CHAIN<br />

How a Sydney intermodal park may ease congestion around Port Botany and provide a smoother<br />

supply chain for importers and exporters to Brisbane and the international market<br />

Talk to LINX Cargo Care chief executive Anthony Jones<br />

about Enfield Intermodal Terminal and there’s no mistaking<br />

his enthusiasm.<br />

“The excitement is where it sits in the rail geography. It is<br />

perfectly positioned on the junction of the Southern Freight<br />

Line, the Port Botany dedicated freight line and also the<br />

freight network up into Strathfield and up north,” he tells Daily<br />

Cargo News.<br />

“When I look at it as a rail infrastructure supply chain<br />

solution, we can offer an intermodal terminal without any<br />

inefficiency.<br />

“We see the terminal as being highly efficient and highly<br />

productive with great infrastructure… we know this will work<br />

and we know we will be able to give value back to the importers<br />

and exporters.”<br />

To recap, earlier this year it was announced LINX had<br />

secured the right to lease and operate the Enfield Intermodal<br />

Terminal in western Sydney, a facility previously operated<br />

by Aurizon.<br />

LINX is also to operate a port shuttle service between the<br />

terminal and Port Botany, 18km away.<br />

Some key features:<br />

• 15.1ha of leasehold from NSW Ports<br />

• Annual terminal capacity of 300,000 TEU<br />

• Two rail sidings of 920 metres in length and through-line of<br />

1800 metres, enabling the management of longer trains.<br />

The terminal is part of the Enfield Intermodal Logistics<br />

Centre which includes warehousing, buildings and vacant<br />

land for the development of rail-related warehousing, freight<br />

forwarding, transport and import/export facilities.<br />

Currently the terminal handles about 24,000 TEU equivalent,<br />

so considerable growth is anticipated.<br />

Mr Jones indicates the company is keen to maximise capacity.<br />

“Our aim is to drive that throughput so we maximise that full<br />

300,000-TEU capacity and work in closely with the stevedores,<br />

the truck access providers and the NSW government,” he says.<br />

He notes forecast throughput at Port Botany should<br />

increase demand for the terminal.<br />

To give some context to his statement, a 2015 NSW Ports<br />

study suggested that Port Botany would be handling anywhere<br />

between 7.5m and 8.4m TEU by 2045.<br />

“Facilitating the efficient and sustainable handling of growing<br />

trade volumes through the Port will maximise economic benefit<br />

for the state and minimise environmental impacts on the local<br />

and wider community,” the report authors wrote.<br />

“The key drivers of container growth through Port Botany<br />

are domestic demand, population growth, the strength of<br />

the NSW economy, the value of the Australian dollar, levels of<br />

domestic manufacturing, government trade policies and the<br />

location of key distribution centres.”<br />

Mr Jones says such trends were sure to boost the need for<br />

the Enfield Intermodal Terminal.<br />

“The more growth you have, the more land you need, the<br />

more you can move out to satellite terminals,” he says.<br />

EMPTY CONTAINER PARKS<br />

Mr Jones explains the role of an empty container park capacity<br />

at the terminal (a facility that is still to begin operating).<br />

“We see the empty container park as being critical. It’s<br />

actually not functioning at the moment. We are shuttling boxes<br />

from empty parks to try and triangulate and backload our<br />

export volume,” he says. “Once we get an empty park onsite,<br />

we will be able to bring export trains down from the country<br />

direct into port, backload them with imports and then offload<br />

those imports at Enfield and then reload the empties to go<br />

back up-country.”<br />

THE SIGNIFICANCE OF ENFIELD<br />

DCN asked Mr Jones about the significance of Enfield as part of<br />

its overall business.<br />

“We’re committed to rail... We have our Riverina train; we<br />

have an expanding rail business,” he says.<br />

“So for us, we see this as a bit of a beachhead investment<br />

for us. It gives us a great solution… a solution that will be<br />

attractive, and is already proving to be attractive to importers<br />

and exporters.<br />

“But it also gives us the opportunity (to provide) a Sydney or<br />

a Melbourne solution to our customers.”<br />

LINX<br />

50<br />

First published in 1891<br />

July 2018 thedcn.com.au


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CURRENCIES, GEO-POLITICS & TRADE<br />

Markets in the age<br />

of Trump<br />

Paul Bettany takes a look at currencies, geopolitics<br />

and how they impact upon international trade<br />

Above: Paul Bettany, foreign exchange<br />

partner, Collinson & Co<br />

THE G7 AND THE TRADE WARS<br />

Financial markets have been mesmerised<br />

by geo-political events enveloping the<br />

globe. The G7 is always a fantastic event<br />

for leaders to prance around the world<br />

stage and bask in the media spotlight.<br />

The talk-fest has always ended with<br />

an agreed-upon communiqué, signed<br />

by all participants in a show of world<br />

solidarity. The build-up was enormous,<br />

with verbal jousting surrounding the<br />

emerging “global trade war”. The US,<br />

under President Donald Trump, has<br />

been threatening all its major trading<br />

partners with a reality check on tariffs.<br />

Trump has looked at the massive<br />

trade imbalances suffered by the US<br />

and concluded the multi-lateral trade<br />

agreements are neither fair nor free. The<br />

EU, China and Canada (under NAFTA)<br />

have all seemingly taken advantage of<br />

unfair trade practices, employing many<br />

protectionist measures and penalising<br />

US exports. Meanwhile, the unfettered<br />

access to the biggest market in the world<br />

(the US), has been virtually unimpeded.<br />

Trump is advocating reciprocal, bi-lateral<br />

agreements, so all trading partners<br />

operate under the same rules. This has<br />

been vociferously rejected by the EU and<br />

Canada, framing it as an attack on the<br />

concept of free trade, while playing the<br />

victim card. Trump has responded with<br />

tariffs and dire warnings linking trade to<br />

defence. The G7 seemed to accept this,<br />

until his departure from the meeting,<br />

when Canadian PM Trudeau launched a<br />

scathing attack on the president (in his<br />

absence). Result: a car crash, which will<br />

cost the Canadians and Europeans $$$.<br />

THE SINGAPORE SUMMIT<br />

This G7 was a tumultuous event but<br />

would soon be forgotten in the brave new<br />

world of Trump. The speed and regularity<br />

of momentous events occurring in<br />

the world have increased in frequency<br />

since the inauguration of the current<br />

administration in the White House.<br />

Trump flew directly from Canada to the<br />

Singapore Summit, where he spent the<br />

day negotiating with the North Korean<br />

Communist Chairman Kim. This was a<br />

historical occasion, resulting in a signed<br />

agreement between the two leaders,<br />

aimed at denuclearising the Korean<br />

Peninsula. The G7 was way in the rearview<br />

mirror. Trump and Kim cavorted<br />

for most of the day in a world-first,<br />

addressing the climacteric position the<br />

region and the world find themselves in.<br />

The results were, it seems, surprisingly<br />

positive and look to be a great first<br />

step in solving one of the world’s great<br />

dilemmas. An agreement was signed and<br />

the process is underway.<br />

GLOBAL TRADE WARS<br />

Trade remains a key issue in global<br />

markets and a resolution may take some<br />

time. The Europeans will have to sign<br />

an amended trade agreement, balancing<br />

tariffs and trade sanctions, or suffer<br />

the consequences. Trump did offer a<br />

proposal, namely to abandon all tariffs<br />

between the G7 nations, but this was<br />

summarily rejected. Trade is a major<br />

factor globally and particularly impacts<br />

trade-dependent, commodity nations,<br />

such as Australia. The ebb and flow of<br />

these developments therefore affect<br />

the associated currency. The AUD has<br />

suffered severe recent setbacks, although<br />

looks to have stabilised, with recent<br />

positive fiscal developments. The real<br />

fluctuations are found in relation to the<br />

reserve currency. The AUD experiences<br />

more volatility measured against the<br />

USD, rather than the EUR, which tends<br />

to move in conjunction with the AUD.<br />

Collinson & Co<br />

52<br />

First published in 1891<br />

July 2018<br />

thedcn.com.au


AUD/USD<br />

Australian dollar/U.S. dollar, 1D, FXCM<br />

Vol (20)<br />

Published on TradingView.com, June 12, 2018 19:19 EST<br />

FX:AUD, ID 0.75731 s +0.00049 (+0.06%) O:0.75682 H:0.75768 L:0.75676 C:0.75731<br />

Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18<br />

AUD/EUR<br />

Published on TradingView.com, June 12, 2018 19:8 EST<br />

FX_IDC:AUDEUR, ID 0.6444 t -0.0003 (+0.05%) O:0.6449 H:0.6449 L:0.6444 C:0.6444<br />

Australian dollar/euro, 1D, FXCM<br />

Vol (20)<br />

Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18<br />

0.81000<br />

0.80000<br />

0.79000<br />

0.78000<br />

0.77000<br />

0.76000<br />

0.75000<br />

0.74000<br />

0.73487<br />

0.73000<br />

0.6700<br />

0.6650<br />

0.6600<br />

0.6550<br />

0.6500<br />

0.6000<br />

0.6400<br />

0.6349 0.6350<br />

0.6300<br />

0.6400<br />

0.6200<br />

0.6<strong>150</strong><br />

depressed global growth. This has<br />

continued for 10 years in the ECB,<br />

Bank of Japan, RBA and RBNZ. As their<br />

economies continue to struggle to get<br />

on top of deficit/debt levels and stunted<br />

growth they have maintained extremely<br />

accommodating monetary policies. The<br />

US, in contrast, has boomed recently<br />

and is rapidly returning to a normalised<br />

monetary policy. This has been reflected<br />

in inflation, growth and employment<br />

leading to rising interest rates. The Fed<br />

has been raising rates over the last two<br />

years and look set to continue to do so.<br />

They operate on an island. US growth<br />

has pushed interest rates up, as demand<br />

surges, while a reasonable return on<br />

money promotes competition for the<br />

investment dollar. Normalised monetary<br />

policy is a place where all economies<br />

wish to be, but indebtedness, sluggish<br />

growth and instability remain a curse to<br />

other western economies. Rising interest<br />

rates support a stronger currency so<br />

expect the US dollar to appreciate over<br />

most currencies in the coming year.<br />

Therefore, recent currency<br />

fluctuations are rather exaggerated when<br />

measured against the USD, as opposed<br />

to the EUR. e.g. the trading range of the<br />

AUD/USD this year has been 0.7430-<br />

0.8130 (700 points or a 9.5% fluctuation)<br />

while the AUD/EUR has moved from<br />

0.6200-0.6550 (350 points or a 5.5%<br />

fluctuation). This continues to hold true<br />

as the EUR moves more in line with<br />

the AUD, versus the reserve USD (N.B.<br />

their respective central banks occupy<br />

a similar space in dramatic contrast<br />

to the Federal Reserve). It is therefore<br />

even more important for businesses<br />

to address foreign currency risk and<br />

ensure it is managed effectively. The risk<br />

factors and protection against exchange<br />

rate movements are essential. Foreign<br />

exchange cover should, therefore, be<br />

even more comprehensive for the USD<br />

as fluctuations are more likely to be<br />

even greater. Take the risk out of foreign<br />

exchange exposure.<br />

CENTRAL BANK INFLUENCE ON<br />

THE MARKETS<br />

Central bank influence has been more<br />

dominant in markets since the GFC.<br />

The GFC encouraged record-breaking,<br />

expansive monetary policy to combat<br />

massive debt levels and stimulate<br />

SUMMARY<br />

Markets operate on confidence and<br />

removing geo-political obstacles provides<br />

a conducive environment in which<br />

to operate. The focus then shifts to<br />

global economic data and the health<br />

of the individual countries economy<br />

and fiscal/monetary policy. Monetary<br />

policy has dominated interest rates, thus<br />

currencies, forcing effective management<br />

of foreign exchange risk. Financial<br />

tools can remove this risk and allow<br />

the orderly function of a business in an<br />

international environment. Risks in the<br />

near future, remain the trade wars and<br />

unforeseen geo-political events while<br />

global economies improve.<br />

thedcn.com.au July 2018<br />

53


INFOGRAPHICS<br />

Winter crop: Wheat and barley<br />

volumes forecast to rise<br />

With production volumes expected to rise for wheat and barley, other commodities<br />

are expected to see a decline in production, writes Oliver Probert<br />

PRODUCTION OF WHEAT AND<br />

barley are set to rise in the coming<br />

2018/19 winter crop, but volumes of less<br />

common commodities like canola and<br />

chickpeas are set to drop, according to<br />

the latest winter crop report from the<br />

Department of Agriculture.<br />

Its June Crop Report suggests overall<br />

winter crop production will decline<br />

ever so slightly to 37.7m tonnes in the<br />

2018/19 crop year, which refers to the 12<br />

months ending March 31.<br />

This would be down a little from the<br />

estimated winter crop production in the<br />

2017/18 crop year, which the Department<br />

has calculated at 37.8m tonnes.<br />

Relatively stable production between<br />

the two seasons will be driven by an<br />

increase in barley and wheat production,<br />

and a decrease in production of canola<br />

and chickpeas.<br />

Dr Steve Hatfield-Dodds, executive<br />

director of the Department of<br />

Agriculture’s statistics division, said<br />

the mixed outlook for Australia’s<br />

winter crops was the result of lower<br />

than average autumn rainfall, which<br />

“significantly” constrained farmers’<br />

planting intentions.<br />

“The total area planted to winter<br />

crops is forecast to decrease by 4% to<br />

21m hectares,” Hatfield-Dodds said.<br />

“This includes a drop in area planted to<br />

canola, chickpeas and lentils.”<br />

Area planted to barley is forecast to<br />

increase 10% to 4.3m hectares, and this<br />

will drive a small production increase of<br />

3% to 9.2m tonnes. Wheat production is<br />

also forecast to grow 3%, to 22m tonnes.<br />

Meanwhile, canola production is<br />

forecast to fall 16% to 3.1m tonnes, and<br />

chickpea production is set to drop a<br />

significant 40% to 616,000 tonnes. But,<br />

Australia’s oats production is forecast to<br />

remain relatively unchanged clocking in<br />

at 1.1m tonnes.<br />

Hatfield-Dodds said sufficient and<br />

timely winter rainfall would be critically<br />

important for crop development, as lower<br />

layer soil moisture at the end of autumn<br />

was recorded below to very much below<br />

average across most cropping regions.<br />

However, the latest BoM analysis<br />

suggests winter rainfall between June<br />

and August 2018 is likely to be around<br />

average in cropping regions in Western<br />

Australia, but below average in most<br />

other cropping regions.<br />

The Department of Agriculture’s<br />

analysis is more positive than that of<br />

agribusiness bank Rabobank, which<br />

recently noted that very low soil<br />

moisture levels across Australia would<br />

curb yield prospects, and could also limit<br />

further plantings into the future.<br />

Rabobank’s analysis forecasts<br />

Australia’s total winter crop will be<br />

just 36.5m tonnes, over 2m tonnes<br />

lower than what the Department of<br />

Agriculture is forecasting.<br />

“High-end yield prospects have been<br />

removed, certainly for canola, but<br />

increasingly for wheat and barley with<br />

average yields, and in some cases lessthan-average<br />

yields considered likely,”<br />

Rabobank senior grains and oilseeds<br />

analyst Cheryl Kalisch Gordon said.<br />

Ms Kalisch said the Australian<br />

winter wheat crop was expected to<br />

come in between 18m and 28m tonnes,<br />

depending on yields and further<br />

planting, which would depend on<br />

further rainfall patterns.<br />

“If we see a wheat crop of 23m<br />

tonnes, we could see Australian wheat<br />

exports fall to their lowest level in nine<br />

years at 15.5m tonnes,” Kalish said.<br />

Figures in million tonnes. *ABARES estimate. **ABARES forecast. Crop year refers to 12 months to March 31.<br />

54<br />

First published in 1891<br />

July 2018<br />

thedcn.com.au


AUSTRALIAN WINTER CROP PRODUCTION<br />

WA SA QLD VIC NSW<br />

34.4<br />

35.3<br />

41.7<br />

45.7<br />

37.9<br />

41.9<br />

39.2<br />

37.7<br />

56.7<br />

37.8<br />

37.7<br />

08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18* 18/19**<br />

PLANTING AREA BY CROP YEAR<br />

12<br />

16/17 17/18 (estimate) 18/19 (forecast)<br />

10<br />

8<br />

6<br />

4<br />

2<br />

0<br />

Wheat Barley Canola Chickpeas<br />

PRODUCTION BY CROP YEAR<br />

32<br />

16/17 17/18 (estimate) 18/19 (forecast)<br />

28<br />

24<br />

20<br />

16<br />

12<br />

8<br />

4<br />

0<br />

Wheat Barley Canola Chickpeas<br />

MARKET ACCESS CRUCIAL<br />

IN SECURING GRAIN GAINS<br />

Government and industry must co-operate in order to<br />

overcome ‘non-tariff measures’ which threaten Australian<br />

grain exporters’ access to overseas markets, according<br />

to a report prepared by consultant Rosemary Richards.<br />

Bankrolled by the Grains Research and Development<br />

Corporation and DAWR, the report noted NTMs were<br />

increasing and were a “priority trade policy issue”.<br />

“The market access challenge is ongoing and requires<br />

government and industry to work together to address<br />

current and future challenges,” Ms Richards wrote.<br />

“Addressing NTMs provides the greatest opportunity for<br />

the industry to increase trade and increase value for the<br />

industry, growers and the economy.<br />

“Market access is critical for the Australian grains industry,<br />

with more than 75% of production exported nationally.”<br />

The report noted the tremendous economic role of grain<br />

by way of jobs in regional communities.<br />

Ms Richards noted the gross value of production for the<br />

grains industry was $17.8bn in 2016/17, with record export<br />

revenue from increased production.<br />

“As a trade-exposed sector, ensuring competitive market<br />

access is essential for its continued prosperity,” she wrote.<br />

“Continued and improved market access is an essential<br />

part of the industry’s platform that enables it to provide<br />

a high quality supply of grains, oilseeds and pulses to<br />

international customers.”<br />

Ms Richards wrote that despite Australian governments<br />

successfully liberalising international trade, “there has been<br />

an increasing influence of domestic support policies in some<br />

of our key importing countries and this is creating some<br />

adverse consequences for the trade environment through<br />

restricted access or changeable rules.”<br />

thedcn.com.au July 2018<br />

55


TRADE & THE LAW<br />

Smoothing supply chains<br />

Lawyer Andrew Hudson discusses the private sector modernising its practices<br />

THE IDEA OF FACILITATING SECURE<br />

and compliant trade underpins many<br />

international agreements, such as the<br />

WTO Trade Facilitation Agreement<br />

(TFA) and the WCO Safe Framework of<br />

Standards (SAFE), and the idea is also<br />

reflected in many Authorised Economic<br />

Operator programs such as our own<br />

Australian Trusted Trader Programme<br />

(ATTP). Government and its agencies<br />

also provide further assistance to those<br />

in the supply chain to take advantage<br />

of trade opportunities, whether it be<br />

through export market development<br />

grants; other export and trade finance;<br />

and education on benefits available<br />

through free trade agreements (FTAs).<br />

As the regulator at the border, there<br />

is no doubt that government and its<br />

agencies have a crucial role. However, that<br />

role is not to the exclusion of obligations<br />

on those in the private supply chain who<br />

also operate at the border and throughout<br />

the wider supply chain.<br />

There needs to be some degree of<br />

collaboration between government, its<br />

agencies (on the one hand), and those<br />

in the private supply chain (on the other<br />

hand). There must be mechanisms for<br />

everyone to work together and even<br />

co-develop initiatives that assist trade<br />

as evidenced in the development of the<br />

ATTP. Certainly many contemporary<br />

FTAs and the TFA speak at length to<br />

the interests and importance of the<br />

private sector and the TFA in particular<br />

supports the creation of bodies such<br />

as our National Committee on Trade<br />

Facilitation (NCTF) and its various<br />

subcommittees. Similar concepts also<br />

support other consultative bodies such<br />

as the ITRF and the DCCC. Formally<br />

or otherwise, these bodies also provide<br />

opportunities for representatives of<br />

government and the private sector to<br />

meet and resolve issues before they<br />

become contentious.<br />

However, there also needs to be focus<br />

on the work of the private sector, whether<br />

in conjunction with government or on its<br />

own account to contribute to improvement<br />

in the supply chain including:<br />

• The private sector needs to continue<br />

its commitment to comprehensive<br />

engagement with government and its<br />

agencies, whether through the NCTF<br />

or other forums such as the ITRF<br />

and DCCC. While there is a cost to<br />

the private sector in terms of time<br />

spent, working with memberships<br />

and attending meetings, that cost<br />

is outweighed by the benefits from<br />

engaging in the process. This goes<br />

beyond merely attending meetings and<br />

requires considered work on the issues.<br />

• The private sector can usefully<br />

review the progress in agreed work<br />

by government and its agencies to<br />

ensure that it is carried out in a timely<br />

manner. This is increasingly important<br />

at the moment as government and<br />

its agencies at the border go through<br />

many changes which can adversely<br />

affect the progress of work.<br />

• The commitment by the private sector<br />

can be undertaken directly and also<br />

through membership and support of<br />

industry associations. I know from my<br />

56<br />

First published in 1891<br />

July 2018<br />

thedcn.com.au


the Australian International Trade<br />

and Transport Industry Development<br />

Fund (or AITDF). The establishment<br />

of the PSG mirrors the existence of a<br />

similar group known at the WCO as<br />

the Private Sector Consultative Group<br />

whose work includes reporting to the<br />

WCO Policy Commission on issues<br />

such as the implementation of the TFA.<br />

• Engagement should not be confined to<br />

work though the various collaborative<br />

forums. Government and its agencies<br />

regularly seek the views of interested<br />

parties in developing legislation or<br />

new trade initiatives such as FTAs. It<br />

org.au/publications/trade-policyrecommendations-5-0-2018<br />

which<br />

identifies some measures to assist<br />

SMEs and MSMEs<br />

• Those providing finance to the supply<br />

chain should be looking to the<br />

development of new products to assist<br />

those involved in trade. Recently,<br />

the Export Finance and Investment<br />

Commission (EFIC) has been<br />

developing new products but there are<br />

more to be developed especially those<br />

supporting MSMEs.<br />

• The private sector has pressed<br />

government and its agencies for<br />

Ultimately, even though the private sector parties may<br />

have different positions on some issues and different<br />

degrees of self-interest, the wider interests of all<br />

parties are served by sensible collaborative action<br />

Ian Ackerman<br />

Above: Andrew Hudson is a partner with<br />

Rigby Cooke Lawyers in Melbourne<br />

direct involvement with the Customs<br />

Brokers and Forwarders Council<br />

of Australia, the Export Council of<br />

Australia (ECA) and the Food and<br />

Beverage Importers Association, that<br />

the role of industry associations is vital<br />

and needs to be supported. Members<br />

of industry get significant value<br />

through their financial support and<br />

commitment to assist associations.<br />

• Industry associations should look<br />

to leverage collective expertise<br />

and resources to advance interests<br />

which may be held by them, even if<br />

they reserve their own positions on<br />

certain specific points. An informal<br />

Private Sector Group (PSG) has<br />

been established at NCTF with the<br />

assistance of a secretariat funded by<br />

is in the interests of all parties that<br />

the private sector makes its interests<br />

known at an early stage to aid the<br />

development of the outcomes.<br />

• There needs to be close review of<br />

fees and practices adopted by private<br />

operators of facilities in the supply<br />

chain as those fees and practices<br />

can readily become an impediment<br />

to access to the facilities and a<br />

disincentive to trade. Those affected<br />

in the private sector of the supply<br />

chain may need to be more proactive<br />

in their approaches to competition<br />

authorities and government if there<br />

are issues of concern.<br />

• The private sector needs to support<br />

attention to the interests of small<br />

to medium enterprises (SMEs)<br />

also now known as micro, small<br />

and medium enterprises (MSMEs).<br />

Bigger enterprises (or associations<br />

supporting those enterprises) often<br />

have the resources to support and<br />

promote their own interests while<br />

SMEs/MSMEs do not have the same<br />

resources. Due to significant interest<br />

in these SME and MSME entities<br />

engaging in trade (evidenced by the<br />

current Parliamentary Inquiry at<br />

www.aph.gov.au/fta), their interests<br />

must also be supported by the private<br />

and public sectors. This is a focus<br />

of the ECA in its 2018 Trade Policy<br />

Recommendations at www.export.<br />

many years to adopt e-commerce<br />

initiatives such as the Single Window<br />

for Trade but there is much work<br />

to be done by the private sector to<br />

modernise its own practices in the<br />

private sector supply chain. For<br />

example, the continued reliance<br />

on paper documents for shipping<br />

and trade finance limits the ability<br />

of e-commerce to enhance trade<br />

and could diminish the widespread<br />

adoption and use of blockchain or<br />

port community systems. Similarly<br />

the adoption of more contemporary<br />

trade conventions, such as the<br />

Rotterdam Rules would assist in this<br />

process. Financiers, insurers and<br />

those providing transport such as<br />

shipping lines and airlines should<br />

consider whether there are ways in<br />

which they can advance these issues in<br />

conjunction with government.<br />

Ultimately, even though the private<br />

sector parties may have different<br />

positions on some issues and different<br />

degrees of self-interest, the wider<br />

interests of all parties are served by<br />

sensible collaborative action by the<br />

private sector with shared contributions<br />

to this trade-modernisation agenda.<br />

Being engaged at the beginning of the<br />

process is a far superior way to influence<br />

the outcome than trying to change<br />

outcomes which have already been<br />

agreed and implemented.<br />

thedcn.com.au July 2018<br />

57


WORKPLACE RELATIONS<br />

Picketing or community<br />

protests: lawful or unlawful?<br />

Ports, stevedoring and logistics operators have been subjected to an increase in<br />

picketing activity in recent times. Considering this, lawyer Chris Gianatti explores<br />

the contemporary history of the practice.<br />

PICKETING IS UNFORTUNATELY<br />

nothing new on the Australian industrial<br />

landscape, nor on the international<br />

industrial landscape generally.<br />

Nevertheless, it has been particularly<br />

prevalent in Australia and has always been<br />

the subject of debate as to its lawfulness.<br />

Picketing is most commonly known<br />

as a form of industrial protest outside<br />

the gates of a business’ premises in<br />

which people line up as “pickets” – that<br />

is, forming a barrier to entry or exit<br />

of the premises. Barbecues, caravans,<br />

vehicles, tents and portaloos are just a<br />

small number of items that have become<br />

additional features of modern pickets.<br />

As far as protesting generally goes, in<br />

a free country with certain privileges in<br />

relation to freedom of speech, political<br />

expression and assembly, protesting<br />

(whether industrial or otherwise) has<br />

always been a part of the fabric of<br />

lawful democratic society, even without<br />

a bill of rights. As to the uglier side of<br />

picketing beyond mere protests, picketing<br />

has also been synonymous with actual<br />

or threatened physical confrontation,<br />

damage to property and, of course, the<br />

blockading of access to and exit from the<br />

premises that is more akin to a battlefield<br />

siege than a protest in the causing of<br />

potentially irreparable economic and<br />

social damage to a business and its people.<br />

The legal history of picketing has<br />

therefore been very much concerned<br />

with distinguishing the unlawful<br />

elements of picketing from perfectly<br />

lawful conduct.<br />

The landmark “Dollar Sweets” case<br />

in Victoria in 1986 was the first decision<br />

of a court to put beyond doubt that<br />

there were several unlawful elements<br />

of picketing. The case involved the<br />

establishment of a picket line outside the<br />

Dollar Sweets factory in Melbourne, by<br />

staff seeking a 36-hour week. The picket<br />

line remained for 143 days, with the<br />

company sacking workers and refusing to<br />

reinstate them.<br />

At the time, the assembly of people<br />

off the roadway, valid parking of vehicles<br />

within designated areas and signage<br />

when not in an obstructive location<br />

were not breaches of council or Roads<br />

Department regulations. Despite the<br />

Commissioner of Police determining<br />

that a police presence was not required,<br />

Justice Murphy of the Victorian Supreme<br />

Court found that the picketers conduct<br />

went well beyond peaceful assembly. He<br />

found that conduct included besetting<br />

behaviour which he regarded as an<br />

obstruction with hostile intent so as to<br />

John Kershner<br />

58<br />

First published in 1891<br />

July 2018<br />

thedcn.com.au


Picketing is not a form of industrial action – so it<br />

cannot be immune from suit under the current<br />

legislative scheme for protected industrial action<br />

“cause those persons to hesitate through<br />

fear to proceed or, if they do proceed, to do<br />

so only with fear for their own safety or the<br />

safety of their property”.<br />

The first actual statute to stop<br />

picketing in Victoria was enacted by the<br />

Napthine Coalition government in 2014.<br />

This made it an offence to engage in<br />

picketing behaviour and initially saw<br />

the police begin to take a more active<br />

role in picketing situations. However,<br />

this legislation was repealed by the<br />

Andrews Labor government shortly after<br />

taking power.<br />

This has left it now to the Court to<br />

continue to regulate unlawful picketing.<br />

Key cases include that picketing:<br />

• is not a form of industrial action – so<br />

it cannot be immune from suit under<br />

the current legislative scheme for<br />

protected industrial action under the<br />

Fair Work Act; and<br />

• despite the defences used by unions<br />

historically that they cannot be<br />

responsible for the individual actions<br />

of picketers who they do not allegedly<br />

know or have association with (i.e. it<br />

is up to each individual on a picket to<br />

be responsible for their own conduct),<br />

unions have recently been held to<br />

be “representative” defendants of a<br />

court action and therefore be so found<br />

to be responsible.<br />

There is still a range of grey areas –<br />

such as where does a picket not engage<br />

in besetting or obstructive behaviour<br />

in a physical sense, but still has the<br />

same effect. This can occur in cases in<br />

which allegedly abusive signs or images<br />

like “Scabby the Rat” have the effect of<br />

causing an apprehension of fear in the<br />

mind of persons seeking to enter or exit a<br />

site and therefore whether those actions<br />

are also still unlawful.<br />

Above: Chris Gianatti is a lawyer and a<br />

director with KHQ Lawyers in Melbourne<br />

Ultimately, the resistance to picketing<br />

activities falls to the individual<br />

businesses involved and their resources<br />

in terms of being able to bring matters<br />

before a court.<br />

Even when orders are issued,<br />

enforcement of the orders becomes a<br />

further issue – which we will seek to<br />

explore in our next article.<br />

QUARANTINE APPROVED: 1.1, 2.4, 2.41, 2.5, 2.5.2<br />

DOAWR: N2416 / N3063<br />

UNDERBOND: FV68J<br />

EXPORT: 2035<br />

9 DOAWR manned depot<br />

9 In-house fumigation service<br />

9 Export grain/seed & timber inspections<br />

9 Export container inspections<br />

9 DOAWR approved wash bay/steam<br />

clean bay<br />

17 BAKER STREET, BANKSMEADOW NSW 2019<br />

thedcn.com.au July 2018<br />

59


INDUSTRY PERSPECTIVE<br />

Caloundra<br />

Addressing the brain drain<br />

The shipping industry needs to do more to attract<br />

talent, writes James Kurz<br />

“SO WHAT DO YOU DO FOR A LIVING?”<br />

The infallible icebreaker that has been<br />

around for longer than shipping itself.<br />

The good thing about telling people<br />

you work in shipping is the reaction it<br />

can elicit. When people realise you are<br />

not a doctor or an accountant, they<br />

tend to show more interest and allow<br />

their imagination to shape follow-up<br />

questions. “So do pirates still exist?”<br />

Shipping is not a common career<br />

path and many of us have fallen into<br />

it inadvertently. I was one of the few<br />

who intentionally pursued a career in<br />

shipping. I was always around boats and<br />

the ocean growing up and it was when<br />

our family moved to a house overlooking<br />

the pilot boarding ground off the Port of<br />

Brisbane that my interest turned into a<br />

passion. The ships would pass less than<br />

half a nautical mile off Caloundra Head<br />

where our house was located, making it a<br />

prime position for ship spotting. I would<br />

log the ship movements and become<br />

fascinated with the voyages, cargos and<br />

a life at sea. I had become a certified<br />

shipping nerd. A few years later, I would<br />

enrol in the Australian Maritime College<br />

and sail as a cadet on oil tankers and<br />

bulk carriers in Australia and South East<br />

Asia. My time at sea was one of the best<br />

experiences of my life. I spent 14 months<br />

on ships before returning home to take<br />

up a shore job. Since then, I have worked<br />

for PAE in Brisbane and Melbourne and<br />

spent 12 months on secondment at PIL<br />

China – Shanghai Office.<br />

ATTRACTING TALENT<br />

The shipping industry needs to do more<br />

to attract talent. Not just university<br />

graduates, but people from outside fields<br />

that can offer meaningful contributions<br />

for the advancement of our industry.<br />

Ours is an ancient profession in a modern<br />

world, making it ripe for disruption.<br />

This is where the opportunity lies. Signs<br />

of disruption are beginning to emerge,<br />

Signs of disruption are beginning to emerge,<br />

through the advent of blockchain technology<br />

and artificial intelligence<br />

through the advent of blockchain<br />

technology and artificial intelligence, for<br />

example. Aside from its main purpose<br />

of improving efficiencies, disruption<br />

can also play an important role in<br />

modernising shipping and attracting new<br />

talent to the field. We need bright minds<br />

to carry these new ideas forward and keep<br />

Above: James Kurz is the Victoria state<br />

manager for Pacific Asia Express (PAE) Pty Ltd<br />

shipping at the forefront of innovation<br />

and technology. Similarly, shipping lines,<br />

agencies and other associated businesses<br />

need to adapt to ensure they are providing<br />

workplaces that foster talent, support<br />

innovation and encourage the challenging<br />

of the status quo.<br />

Anyone considering a career in<br />

shipping should be encouraged by the<br />

industry’s appetite for change and<br />

openness to innovation. Shipping has<br />

woken up and realised that its future<br />

relevance and value depends on doing<br />

things better. Shipping has been the<br />

lifeblood of global trade for thousands<br />

of years. The next 50 years will see most<br />

significant changes in generations.<br />

Image supplied<br />

60<br />

First published in 1891<br />

July 2018<br />

thedcn.com.au


POSITIONS VACANT<br />

MARINE PILOT -<br />

MACKAY BASED<br />

About North Queensland Bulk Ports (NQBP)<br />

NQBP is looking for a Marine Pilot to join its Mackay<br />

based team.<br />

NQBP is one of Australia’s largest port authorities<br />

by tonnage throughput. More than half of<br />

Queensland’s trade by tonnage passes through its<br />

ports of Weipa, Abbot Point, Mackay and Hay Point.<br />

The NQBP Marine Pilots provide port pilotage in the<br />

ports of Mackay and Hay Point.<br />

The Role<br />

An exciting opportunity exists for an experienced<br />

and motivated Marine Pilot to join NQBP’s pilotage<br />

service. Reporting to the Manager Pilotage Services,<br />

some of the key responsibilities of this role include:<br />

• Undertake training to gain and progress a valid<br />

pilot’s licence and area endorsements so as to<br />

meet the operational demands of the region<br />

• Conduct safe and efficient pilotage of vessels<br />

in regional ports through a high level of ship<br />

handling skill, local port knowledge and general<br />

maritime expertise<br />

• Undertake safety training including updating<br />

and familiarisation of ports and marine<br />

emergency training<br />

• Liaise with ships’ masters, operators, agents,<br />

port authorities, regulatory bodies and providers<br />

of marine safety services concerning shipping<br />

• Use computer technology as it relates to the<br />

effective delivery of pilotage services<br />

• Assist in the overall task of port pilotage<br />

management including completing appropriate<br />

documentation and logs in a timely manner<br />

• Demonstrate a personal commitment to<br />

understanding and complying with NQBP’s<br />

workplace health and safety and environmental<br />

policies and procedures<br />

• Promote and contribute to teamwork,<br />

knowledge and skill sharing<br />

• Seek to provide a quality, cost-effective and<br />

customer focused delivery of service.<br />

Skills and Experience<br />

To be considered you must hold a valid unrestricted<br />

Master Class 1 Certificate of Competency or<br />

Master Unlimited Certificate recognised by the<br />

Australian Maritime Safety Authority (AMSA); a valid<br />

Queensland driver’s licence (or equivalent) and be<br />

able to demonstrate:<br />

• Experience as a competent master mariner,<br />

ideally with ship handling experience as Master<br />

or Pilot, and knowledge of the regulatory<br />

framework pertaining to pilotage in Queensland;<br />

• Ability to use Microsoft Office programs,<br />

including Word and Outlook;<br />

• Ability to maintain confidentiality and<br />

communicate professionally to a wide range of<br />

internal and external clients, both verbally and<br />

in writing;<br />

• Ability to work effectively in a team<br />

environment, resolve conflict and participate<br />

equitably in positive and successful teams.<br />

Special Role Requirements<br />

Marine Pilots are available for work 24 hours per day<br />

while on their designated pilotage roster (currently 7<br />

days on, 7 days off). Marine Pilot working hours are<br />

regulated by a Fatigue Risk Management System.<br />

In accordance with marine legislation, Marine Pilots<br />

need to hold a current certificate of medical fitness<br />

while undertaking duty.<br />

To be eligible for a permanent role, applicants must<br />

provide proof of Australian citizenship or permanent<br />

residency.<br />

Application Process<br />

If you are interested in this role based in Mackay,<br />

please apply through www.seek.com.au with a<br />

cover letter outlining why you are the best candidate<br />

for the role. Attach a copy of your resume and<br />

include your availability for interview from 23 July<br />

(i.e. work pattern).<br />

Applications close 12 noon,<br />

Friday 27 July 2018.<br />

A full position description is available on NQBP’s website www.nqbp.com.au


THE TORRES STRAIT<br />

Opening the Strait<br />

Trials aimed at improving safety in the Torres Strait may soon contribute to better<br />

productivity, writes David Sexton<br />

SUCCESSFUL TRIALS INVOLVING<br />

under-keel clearance technology are now<br />

allowing deeper-draught ships to pass<br />

through the Torres Strait.<br />

For the past three decades the limit<br />

prescribed by the regulator has been set<br />

at 12.2 metres, noting this stretch of<br />

water carries a high risk of grounding<br />

owing to complicated tides, strong<br />

currents and a hard, rocky bottom.<br />

AMSA’s validated Under-Keel Clearance<br />

Management System (UKCMS) in the<br />

Torres Strait has been in operation<br />

since December 2011. The mandatory<br />

requirement to use the UKCMS for vessels<br />

with a draught more than 8 metres, yet<br />

not exceeding 12.2 metres was included<br />

in the update of Marine Order 54 (coastal<br />

pilotage) (MO54) that came into effect<br />

on 1 July 2014.<br />

The UKCMS is used, on average, five<br />

times a day by coastal pilots to assist<br />

with navigational safety decisions<br />

required for deep-draught vessels<br />

transiting through Torres Strait.<br />

“AMSA has identified the potential to<br />

carefully increase the current regulated<br />

maximum draught limit of 12.2 metres<br />

when and where environmental conditions<br />

permit,” the regulator told Daily Cargo News.<br />

“To ensure any decision to increase<br />

the regulated maximum draught limit<br />

is made safely, AMSA has authorised a<br />

staged trial to investigate the possibility<br />

of increasing the regulated maximum<br />

allowable draught in the region.”<br />

The trial has been run as a close<br />

collaboration between OMC International<br />

(which provides the software and hosts<br />

the UKCMS on AMSA’s behalf) and<br />

owners of specifically targeted bulk and<br />

container vessels.<br />

According to AMSA, the trial involves<br />

collecting real-world GPS-based vessel<br />

motion data over four separate stages of<br />

multiple transits.<br />

Each stage uses vessels with<br />

incrementally increasing draughts over<br />

the 12.2-metre limit.<br />

“To date, four stages of the trial have<br />

been successfully and safely completed<br />

using bulk vessels with AMSA now<br />

collecting further trial data at draughts<br />

of up to 12.5 metres,” AMSA stated.<br />

“It is intended that targeted container<br />

vessels will contribute to the trial shortly.<br />

“It is intended that upon completion<br />

of the trials and final assessments,<br />

recommendations will be made to<br />

endorse possible long-term changes<br />

to the existing draught regime for the<br />

benefit of industry without incurring any<br />

additional navigational risk.”<br />

OMC chief executive Peter O’Brien<br />

and general manager product design<br />

Chris Hens were on the Gold Coast<br />

recently where they discussed the<br />

trials as part of the NAV18 Navigation<br />

Safety Symposium.<br />

AMSA<br />

First published in 1891<br />

62 July 2018<br />

thedcn.com.au


They explained how the Straits were a<br />

shipping bottleneck, something difficult<br />

to overcome, given its environmental<br />

sensitivity meant dredging was not<br />

an option.<br />

“Up until the last 18 months, no<br />

(larger) vessels have been able to transit<br />

through Torres Strait at draughts of greater<br />

than 12.2 metres,” Mr O’Brien said.<br />

Rio Tinto ships bauxite from Weipa<br />

down to Gladstone and every extra<br />

centimetre in draught is said to be<br />

worth an extra 80 tonnes of bauxite<br />

to the big miner.<br />

“With the right information there<br />

are opportunities to go deeper than 12.2<br />

metres,” Mr O’Brien said.<br />

“It has been quite a significant<br />

bottleneck.”<br />

The Straits are also of interest to<br />

container ships looking to sail down<br />

the east coast of Australia and to New<br />

Zealand, as well as some tanker vessels.<br />

Mr O’Brien said back in 2009 they were<br />

asked to put in a DUKC variation – the<br />

DUKC–N that was commissioned in 2011.<br />

“AMSA’s priority was safety. They were<br />

clear the system was put in to enhance<br />

safety,” he said.<br />

“But it was always recognised in the<br />

goodness of time they would look to see if<br />

they could take some of the productivity<br />

benefits from a dynamic approach.”<br />

RECENT TRIALS<br />

Mr O’Brien noted that there were four<br />

stages of testing for the new system,<br />

and each stage there were three<br />

measurements.<br />

“The first stage was three vessels with<br />

a draught of 12.3 metres (10cm deeper<br />

than had ever been allowed). For these<br />

vessels, our engineers measured the UKC<br />

and compared with what the system was<br />

saying,” he told DCN.<br />

There is environmental benefit in that there<br />

are 10 fewer ships that could ground<br />

Further tests involved Rio Tinto vessels<br />

with draughts of 12.4 metres and 12.5<br />

metres.<br />

Maximum draught trials occurred<br />

in January and February this year, one<br />

ship with a draught of 12.8 metres and<br />

another at 12.7 metres.<br />

New technology may boost maritime productivity in the Torres Strait<br />

Rio Tinto was allowed for a threemonth<br />

period to have its ships transit the<br />

Strait at 12.3 metres.<br />

This cap (for Rio Tinto) was later lifted<br />

to 12.4 metres and then 12.5 metres.<br />

An extra 30cm in draught means Rio<br />

Tinto can move close to an additional<br />

2500 tonnes extra bauxite per ship.<br />

Rio typically makes about 200<br />

shipments through the Strait every year,<br />

but extra draught means more bauxite can<br />

be loaded and thus reduce these number<br />

of shipments overall.<br />

“That is worth a lot of money and there<br />

is environmental benefit in that there are<br />

10 fewer ships that could ground,” Mr<br />

O’Brien said.<br />

A spokesman for Rio Tinto said<br />

their first priority was safety and<br />

environmental protection, so the staged<br />

implementation was carefully monitored<br />

and checked as the trials progressed.<br />

The Rio Tinto spokesman said the<br />

trials added other benefits such as<br />

improved productivity, meaning less<br />

ships and fuel required to move bauxite<br />

volumes required for the Gladstone<br />

refineries.<br />

“Rio Tinto has fully supported this<br />

project since the start, working in<br />

collaboration with AMSA and OMC,”<br />

the spokesman said. “It is great to see<br />

this project has the potential to<br />

benefit other industries too and<br />

ultimately improve in/out bound<br />

shipping costs for Australian businesses<br />

using container liners.”<br />

Shipping Australia chief executive Rod<br />

Nairn said the trials in the Strait were<br />

“a great development that has been an<br />

ongoing initiative between AMSA and the<br />

Australian Hydrographic Office for more<br />

than a decade”.<br />

“The implementation of the under-keel<br />

management system has been a great<br />

success, improving safety and protection<br />

of the environment,” Mr Nairn said.<br />

“Quite rightly the first aim was<br />

improved safety, but now that the system<br />

has been operating and has proven<br />

reliable, it is good to see that the cargo<br />

and trade benefits of the system are now<br />

being realised.<br />

“The outcome is either to reduce<br />

the number of ships required to carry<br />

a predetermined cargo or increase<br />

the cargo carried at a net benefit to<br />

the environment in terms of tonnes<br />

per kilo of CO2 produced and greater<br />

productivity. It’s a real ‘win/win’.”<br />

thedcn.com.au<br />

July 2018<br />

63


OUT & ABOUT<br />

A high time on the high seas<br />

The Women in Maritime cruise-ship<br />

luncheon gathered industry figures to eat,<br />

drink and discuss diversity<br />

Third officers from Pacific Explorer with officials from<br />

Carnival Australia and the Nautical Institute<br />

SEAFARERS GATHERED ON P&O CRUISE’S PACIFIC<br />

Explorer while it was berthed at Sydney’s Overseas Passenger<br />

Terminal to eat, drink and discuss how to encourage more<br />

diversity in the maritime workforce.<br />

The event started in the ship’s “Blue Room”, where guests were<br />

treated to champagne and canapés, and old friends caught up.<br />

Then, guests were directed to the restaurant where they were<br />

served a gourmet lunch and a four-woman panel discussed<br />

impediments to women entering the seafaring workforce – only<br />

2% of the world’s seafarers are female, they said.<br />

A group of third officers who are working on the Pacific<br />

Explorer were in attendance; they are participating in a<br />

Carnival Australia program that provides a path for young<br />

people to become deck officers.<br />

The luncheon was organised by the Nautical Institute under<br />

its Women in Maritime Initiative. The major sponsor of the<br />

luncheon was Carnival Australia and P&O Cruises, and the Port<br />

Authority of New South Wales was the partnering sponsor.<br />

Adrienne Cahalan, Janine Liang and Alexis Cahalan<br />

The panel: Justine O’Connell, Holly Saunders, Melissa Yates<br />

and Jeanine Drummond<br />

Friends caught up over bubbles<br />

64<br />

First published in 1891<br />

July 2018<br />

thedcn.com.au


Ian Ackerman<br />

Carmen Blanco, Jo Clark and Katherine Mahon<br />

Kendall Carter of the Nautical Institute<br />

The event was held on Pacific Explorer<br />

The welcome drinks reception was held in the cruise sihp’s “Blue Room”<br />

A gourmet lunch was enjoyed by all in attendance<br />

thedcn.com.au July 2018<br />

65


The grill<br />

KELLY MCGINTY talks inspirational Australians,<br />

why “Deadpool” is an amazing movie and getting<br />

more women into logistics<br />

What is your job?<br />

I am business development and project<br />

management specialist at Powerhouse<br />

Logistics Pty Ltd.<br />

My job is never dull and it encompasses<br />

sales, marketing, operations, account<br />

management, project management. I<br />

also manage events and social media<br />

marketing. I develop new sales from<br />

general cargo to specialised cargo including;<br />

over dimensional and overweight cargo,<br />

artworks, cosmetics, observatories and<br />

scientific equipment, military/defence<br />

munitions and equipment, mining<br />

machinery, and endangered animals. I<br />

have been relocating exotic, endangered,<br />

equine animals for about 25 years and<br />

have moved everything including giraffes,<br />

rhinos and primates to aquatic animals.<br />

Where did you grow up? What made it<br />

special?<br />

I’ve always been a Sydney girl. My fondest<br />

memories of my childhood are always of<br />

my family, (my parents and my sister),<br />

whether it’s a holiday to Avoca, going ice<br />

skating with my sister we trained every<br />

day when we were young girls, going<br />

for a drive or nice lunch, bush walking,<br />

Christmas time I always looked forward<br />

to Christmas, what made it so special<br />

and still does is purely because of them.<br />

What do you enjoy doing outside of work?<br />

I’ve always enjoyed music, dancing (live<br />

bands rock n roll/swing music/jazz),<br />

shows and movies, food and wine and<br />

two years ago I started my WAYWF list<br />

(What are you waiting for list) which<br />

is very long. My list includes things I’ve<br />

always wanted to try but never have,<br />

of places I want to see, experiences I<br />

want to have. Now I love to snowboard.<br />

There’s nothing like clean crisp air and<br />

snowflakes floating gently from the sky<br />

while you sit staring down a mountain.<br />

When I have time I paint or sketch.<br />

Above all, spending time with my family.<br />

Is there any Australian (past or present)<br />

who you find particularly inspirational?<br />

Sara Jane Henderson for her sheer guts<br />

to take on the outback in the 1930’s<br />

and rebuilds Bullo River Cattle Station<br />

after her husband died in 1985. The<br />

station was in severe debt however Sara<br />

and her daughters did not give up, her<br />

determination and courage won her<br />

an Australian Business Woman of the<br />

year award in 1991. I can’t imagine how<br />

challenging it must have been for her<br />

and her daughters.<br />

What was the last movie you watched?<br />

I’m a huge movie buff. At the cinema I<br />

recently watched “Black Panther”. The<br />

female characters were brilliant and<br />

for me stole the show but the CGI was<br />

sloppy at times. At my home cinema I<br />

have watched “Deadpool” multiple times.<br />

What a mind-blowingly fun ride. I love<br />

“Deadpool” with his quips along with<br />

the outrageous action scenes combined<br />

with incredible CGI. It remains my<br />

favourite release from 2016. The movie<br />

is cast brilliantly and Ryan Reynolds just<br />

owns it. Let’s not forget underneath it all<br />

it’s a love story…naaawwwww.<br />

Why are you passionate about getting<br />

more women working in logistics?<br />

I was lucky enough to start my journey<br />

in this industry with a mentor who I am<br />

still working with today after 25 years,<br />

Alex Kijurina. When I began, logistics was<br />

male-dominated however we have come<br />

a long way. Our industry offers incredible<br />

choice and diversity. My passion emanates<br />

from the love of my profession and how<br />

lucky I am to do amazing work.<br />

What is WiLAT and what is your role<br />

with it?<br />

I have been wanting to pass on my<br />

knowledge for some time and inspire<br />

others to join my industry. I thought<br />

joining a reputable industry association<br />

would be a good place to start (it was). I<br />

became a member of CILT-A (Chartered<br />

Institute of Logistics Australia) and<br />

within 12 months of joining I applied<br />

for a scholarship through Women<br />

and Leadership Australia in Advanced<br />

Leadership Management. I then won<br />

the award for Professional Women in<br />

Logistics and Transport 2017 (WiLAT)<br />

which was a tremendous honour.<br />

This is the first time this award was<br />

introduced by CILT-A and with it comes<br />

the responsibility of being Australian<br />

convenor for WiLAT of which I am proud<br />

to be a part. WiLAT is the international<br />

women’s group at The Chartered<br />

Institute of Logistics and Transport. The<br />

Australian chapter will be launching at<br />

the end of this year at CILT-A’s annual<br />

event in Perth. WiLAT promotes the<br />

status of women in the supply chain,<br />

logistics and transport industries by<br />

providing opportunity and support in the<br />

four key areas of leadership, mentorship,<br />

entrepreneurship and empowerment.<br />

#welovefreight #PHLProjectCargo<br />

#HTFN #CILTA #WiLATAU<br />

#100daysforchange<br />

Image supplied<br />

66<br />

First published in 1891<br />

July 2018<br />

thedcn.com.au


MANAGING AUSTRALIA’S KEY TRADE GATEWAYS<br />

CONNECTING YOU TO THE WORLD<br />

Port Botany and Port Kembla are essential infrastructure assets, the primary import and export gateways<br />

to New South Wales.<br />

www.nswports.com.au


Delivering safe,<br />

efficient and sustainable<br />

world-class port and<br />

marine services<br />

www.portauthoritynsw.com.au

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