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First published in 1891<br />

<strong>May</strong> <strong>2019</strong><br />

thedcn.com.au<br />

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

Charting<br />

a steady<br />

course<br />

Global drivers support<br />

breakbulk and project<br />

cargo recovery<br />

8 Election <strong>2019</strong>: both<br />

sides have their say<br />

26 QLD ports investing<br />

in greater capacity<br />

56 Australia’s trade<br />

agenda post-election


XXXXXX<br />

Contents<br />

26<br />

34<br />

FEATURES<br />

26 Queensland<br />

A look at how QLD ports are investing in a future with bigger ships<br />

34<br />

42<br />

48<br />

Breakbulk & project cargo<br />

The global recovery in breakbulk and project cargo set to continue<br />

Container shipping & logistics<br />

Intermodal facilities becoming increasingly vital to supply chains<br />

Tugs & towage<br />

Exploring the “new order” of the tug boat industry in Australia<br />

COLUMNS<br />

42<br />

48<br />

8 Election <strong>2019</strong><br />

Michael McCormack and<br />

Anthony Albanese have their say<br />

16 Freight & Trade Alliance<br />

Measures to control the BMSB<br />

18 Maritime Industry Aust.<br />

Angela Gillham examines the<br />

trend towards cleaner fuels<br />

20 Women in maritime<br />

A profile of Natalie Godward<br />

22 Election <strong>2019</strong><br />

Industry group leaders outline<br />

priorities for next government<br />

54 Maritime law<br />

Update on autonomous shipping<br />

56 Trade law<br />

Our trade agenda post-election<br />

58 The forwarder<br />

AFIF explains the finer details of<br />

new air cargo security regime<br />

60 Industry profile<br />

Allied Seafreight hits milestone<br />

62 Out & about<br />

MSC marks 30 years of operation<br />

64 Port sustainability<br />

Lessons from the port<br />

sustainability forum in Geneva<br />

66 The grill<br />

Jackie Spiteri’s journey from<br />

Wales to the Port of Newcastlei<br />

4 <strong>May</strong> <strong>2019</strong><br />

thedcn.com.au


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First published in 1891<br />

<strong>May</strong> <strong>2019</strong><br />

thedcn.com.au<br />

EDITORIAL<br />

ISSUE NUMBER 1246 <strong>May</strong> <strong>2019</strong><br />

From the editor<br />

By the time many of you read this, Australia will be less than two<br />

weeks from the end of a bruising federal election campaign. A week<br />

is a long time in politics but it still seems the likely outcome will be<br />

a change of government.<br />

Logistics and trade have featured in the campaign without being<br />

a central theme, Labor’s Inland Rail inquiry pledge being the most<br />

newsworthy development.<br />

The Coalition has emphasised investment in regional freight<br />

infrastructure (perhaps a nod to the National Party).<br />

Labor, meanwhile, has made the case for revitalising Australian<br />

shipping and the Australian shipping sector. Recent history suggests<br />

the ALP will have its work cut out. But given the 2012 shipping laws<br />

brought in by then federal Minister for Infrastructure Anthony<br />

Albanese remain in place, a Labor federal government would have<br />

reason for believing it could progress its agenda.<br />

On the macro level, the logistics sector needs economic growth,<br />

something no longer to be taken for granted in a volatile world. The<br />

next federal government will need to be nimble on its feet on the<br />

world stage, with Trump and Brexit having turned the free trade<br />

narrative on its head.<br />

Australians want stability. We used to chortle about short-term<br />

and volatile administrations - but no longer. Both governments and<br />

oppositions at federal level have been riven with infighting for the<br />

past decade and coherent policy development has been problematic.<br />

This country and the logistics sector require better of their leaders.<br />

David Sexton<br />

Editor, Daily Cargo News<br />

Stay up to date with the latest industry news and insights<br />

by subscribing to one of our subscription packages!<br />

thedcn.com.au<br />

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Tel: 02 9126 9713<br />

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

Charting<br />

a steady<br />

course<br />

Global drivers support<br />

breakbulk and project<br />

cargo recovery<br />

8 Election <strong>2019</strong>: both<br />

sides have their say<br />

26 QLD ports investing<br />

in greater capacity<br />

56 Australia’s trade<br />

agenda post-election<br />

<strong>DCN</strong>0519_Cover.in d 1 26-Apr-19 10:34:34 AM<br />

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ELECTION <strong>2019</strong><br />

Australia votes<br />

With the federal election weeks away, Deputy Prime<br />

Minister and infrastructure minister Michael McCormack<br />

(Nationals) and Labor infrastructure spokesman<br />

Anthony Albanese pitch for the logistics vote<br />

AN AGE OF INFRASTRUCTURE<br />

MICHAEL MCCORMACK<br />

The <strong>2019</strong> budget showed that the Liberals<br />

and Nationals in government are the team<br />

of strong economic management. We are<br />

bringing the budget back into surplus, there<br />

are further tax cuts and we have increased<br />

our already significant infrastructure<br />

investment to $100bn over the next decade.<br />

This is what I call the age of infrastructure.<br />

This investment includes additional funding<br />

for important programs to better connect<br />

the regions and improve regional road safety.<br />

It is yet another sign of our commitment<br />

to regional Australia being stronger than<br />

ever. As the leader of The Nationals, I know<br />

that when the regions are strong so too is our<br />

nation. So much of the wealth and economic<br />

opportunity of Australia is in the regions.<br />

So that’s why our budget is unashamedly a<br />

budget for the bush. Our strong economic<br />

management allows us to invest in projects<br />

with a regional focus, such as regional<br />

freight. By backing country and coastal<br />

communities, we have a focus on helping<br />

build even more liveable, economically<br />

competitive and sustainable regions, and<br />

we’re willing to back this focus with dollars.<br />

STRATEGIC ROADS<br />

For example, we are expanding successful<br />

programs such as our Roads of Strategic<br />

Importance initiative, taking our<br />

investment from $3.5bn to $4.5bn.<br />

Funds will be spent on improving access<br />

to regional and interstate highways and<br />

in doing so connect regions and their<br />

businesses to cities, ports, and new<br />

market opportunities both locally and<br />

internationally. This includes investing<br />

$510m toward road upgrades along the<br />

Toowoomba to Seymour Corridor.<br />

Safe and reliable infrastructure is a<br />

critical foundation to any region’s success,<br />

and forms the building blocks from which<br />

a region can grow its local economy and<br />

form connections with other parts of<br />

Australia. That’s why every council in<br />

the country is getting an additional 25%<br />

for its local roads under the Roads to<br />

Recovery Program. Infrastructure upgrades<br />

such as those made through the Roads of<br />

Strategic Importance initiative deliver not<br />

only faster transportation for regional<br />

business, but also support for industries<br />

and communities critical for freight and<br />

tourism and local councils will get the<br />

support they need to maintain local roads.<br />

GETTING HOME SAFELY<br />

The Liberal and Nationals’ government is<br />

determined to improve the safety of people<br />

on our roads. We want to help you get<br />

home sooner and safer no matter where<br />

Michael McCormack, Deputy Prime Minister<br />

and minister for infrastructure and transport<br />

you live. So we are investing $2.2bn in our<br />

new Local and State Government Road<br />

Safety Package. This includes the boost to<br />

councils I mentioned and a further $550m<br />

for the Black Spot Program to target and<br />

upgrade dangerous sections of road. This<br />

new investment has also seen a further<br />

$275m for both the Bridges Renewal<br />

Program and the Heavy Vehicle Safety and<br />

Productivity Program, which will upgrade<br />

or replace our bridges, rest areas, increase<br />

road capacity, and fund technology trials,<br />

all of which improve heavy vehicle safety<br />

and productivity.<br />

The Liberals and Nationals are also<br />

providing $8m of grant funding to the<br />

National Heavy Vehicle Regulator to<br />

streamline the approval process for road<br />

access by heavy vehicles such as farming<br />

and construction machinery.<br />

Nils Versemann; Image supplied<br />

8 <strong>May</strong> <strong>2019</strong><br />

thedcn.com.au


Ian Ackerman<br />

FIXING ROADS<br />

High-risk areas on our roads – such as<br />

narrow stretches, low-capacity bridges,<br />

and areas with deteriorating bitumen –<br />

damage the efficiency and capacity of our<br />

freight network to extend as far as it has<br />

the potential to do. Unless governments<br />

invest in maintaining and upgrading<br />

regional roads, connectivity between the<br />

regions will be compromised and everyday<br />

individuals and families living in the<br />

regions will have that much more trouble<br />

getting from A to B. That’s an issue that<br />

has long needed addressing – and under our<br />

government, it’s being addressed right now,<br />

all over Australia.<br />

With Australia’s freight task expected to<br />

nearly double, we need forward-thinking<br />

governments to focus on improving<br />

efficiency, particularly throughout regional<br />

Australia, to better connect our cities and<br />

their populations with the regions and each<br />

other. All of this is and will be achieved<br />

without increasing taxes.<br />

A PLAN IN PLACE<br />

We have a plan in place to deliver for<br />

Australia’s future, the Liberals and<br />

Nationals are doing just that. Through our<br />

strong economic management and getting<br />

the budget back in the black, we have<br />

ensured that Australia can afford to do so.<br />

VISION KEY TO EFFICIENT TRANSPORT<br />

SYSTEM<br />

ANTHONY ALBANESE<br />

If you look at the most successful leaders<br />

in Australian and world history, there’s a<br />

common factor in their success – vision.<br />

Vision is about imagining a better future<br />

and taking the steps now that are required<br />

to achieve it. It’s about taking decisions<br />

which establish building blocks for future<br />

prosperity, even if they don’t provide an<br />

immediate political benefit. This approach<br />

will be at the heart of the infrastructure<br />

policies the Labor Party will take to the<br />

election.<br />

Like Bob Hawke and Paul Keating with<br />

their economic reforms of the 1980s and<br />

1990s, a Labor Government would focus<br />

on the long game. Governments need to<br />

stop making short-term decisions and<br />

ensure that decisions lay the foundations<br />

for future growth, beginning with basing<br />

those decisions upon evidence. In 2008,<br />

the former Labor Government established<br />

Infrastructure Australia to provide<br />

independent, evidence-based advice to<br />

the government about infrastructure<br />

policy and projects. The organisation<br />

was designed to produce a pipeline of<br />

properly assessed projects capable of being<br />

embraced by both sides of politics on the<br />

basis of demonstrated merit. We wanted<br />

to break the nexus between the shortterm<br />

political cycle and the long-term<br />

investment cycle.<br />

But upon coming to government, the<br />

Coalition immediately cancelled a series<br />

of Infrastructure Australia-backed projects<br />

aimed at reducing traffic congestion and<br />

improving the movement of freight within<br />

and between our big cities. The next Labor<br />

Government would return to an approach<br />

where we fund projects on the basis of<br />

their potential to drive economic growth,<br />

rather than their political utility. The<br />

former Labor Government also worked<br />

with Infrastructure Australia to improve<br />

transport planning, which led to IA<br />

producing Australia’s first-ever National<br />

Ports Strategy and the National Land<br />

Freight Strategy. This meant that when the<br />

current government took office, it had at<br />

its disposal a blueprint for a more efficient<br />

transport and logistics system. But instead<br />

of grabbing the ball and running with it,<br />

the Coalition did nothing until 2016, when<br />

it began preparing its National Freight and<br />

Supply Chain Strategy, due for completion<br />

later this year.<br />

TIME FOR ACTION<br />

The logistics sector does not need more<br />

plans. It needs more investment in our<br />

roads and rail lines, as well as public<br />

transport in cities to reduce traffic<br />

congestion and allow for faster movement<br />

of road freight. For nearly six years, the<br />

Coalition government has overseen a<br />

reduction in infrastructure investment.<br />

Prior to delivery of the <strong>2019</strong>-20 budget,<br />

annual Federal infrastructure funding was<br />

on a downward trajectory. While this year’s<br />

budget finally did include the promise of<br />

“new’’ spending, the bulk of the spending<br />

is not scheduled to appear until years into<br />

the future. Indeed, the Coalition would<br />

need to be re-elected twice more before<br />

the promised extra investment appeared.<br />

For example, of new investment promised<br />

for New South Wales, just 4% will flow<br />

over the next four years. The budget was<br />

a political document designed to get the<br />

Coalition re-elected, not a blueprint for a<br />

more productive economy.<br />

Anthony Albanese, shadow minister for<br />

infrastructure, transport, cities and regional<br />

development<br />

INFRASTRUCTURE INVESTMENT<br />

Australia needs to increase infrastructure<br />

investment now, not four years from now.<br />

And that would be a priority of an incoming<br />

Shorten Labor Government, particularly<br />

when it comes to rail. We must work to<br />

capitalise on rail’s existing advantages by<br />

ensuring our rail infrastructure is up to<br />

the task. In this area, the former Labor<br />

Government got the ball rolling. We<br />

invested heavily in separating passenger and<br />

freight lines to Sydney’s north and south.<br />

We rebuilt one third of the interstate rail<br />

network. We kicked off work on Moorebank<br />

Intermodal Terminal. We also allocated<br />

funding to duplicate the Port Botany Line<br />

– another investment cancelled by the<br />

incoming Coalition Government, but later<br />

revived when they realised their mistake.<br />

INLAND RAIL<br />

When it comes to Inland Rail, Labor<br />

supports this project. However, I remain<br />

sceptical about the current government’s<br />

financing model. The use of an equity<br />

investment in the Australian Rail Track<br />

Corporation to fund Inland Rail is<br />

based on the Government’s assertion<br />

that the project will somehow stack up<br />

on a purely commercial basis. This fact<br />

was recognised by former Deputy Prime<br />

Minister John Anderson’s 2015 Inland Rail<br />

Implementation Study, which found that<br />

the project’s revenues would not cover its<br />

capital cost in its first 50 years. Inland Rail<br />

is a visionary project. It is critical that we<br />

get the planning right.<br />

thedcn.com.au <strong>May</strong> <strong>2019</strong> 9


News in brief<br />

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

BIGGER SHIPS<br />

ABLE TO CALL AT<br />

LYTTELTON<br />

A project to expand the Lyttelton<br />

shipping channel is finished, ensuring<br />

the harbour is prepared for a future<br />

with larger vessels.<br />

But the amount of dredging<br />

required was said to have been<br />

reduced due to the use of dynamic<br />

under keel clearance technology,<br />

maximising the accuracy of shipping<br />

draft calculations.<br />

Lyttelton Port Corporation chief<br />

executive Peter Davie said the new<br />

system would improve the safety of<br />

all commercial shipping movements.<br />

“Container ships have doubled in<br />

size over the last 10 years and the<br />

trend toward bigger ships continues,”<br />

Mr Davie said.<br />

“We have enlarged the existing<br />

shipping channel to provide access to<br />

larger ships and support Lyttelton’s<br />

future as the South Island’s major<br />

international trade gateway.”<br />

The container terminal’s maximum<br />

draught is now 13.3 metres at Cashin<br />

Quay 2 and 3 East.<br />

Mr Davie said one of the biggest<br />

improvements was in terms of<br />

visibility.<br />

The old main channel leading light<br />

was in the hills above Governors<br />

Bay, but the new sector light is 6km<br />

closer to the end of the channel and<br />

is expected to be more visible during<br />

misty and drizzly conditions.<br />

The DUKC program links to<br />

portable pilot units, to calculate and<br />

continuously monitor the under keel<br />

clearance of large draught vessels as<br />

they move through the channel.<br />

There is a weather buoy and<br />

further sensors in the harbour to<br />

analyse swell and wind information<br />

to provide a “tidal window” for each<br />

vessel.<br />

One of the new autostraddles to be used by Patrick<br />

Patrick invests in new straddle carriers<br />

Waterfront technology provider Kalmar<br />

is set to supply 12 diesel-electric straddle<br />

carriers to Patrick Terminals over the year<br />

to come.<br />

The order, which comprises eight<br />

automated Kalmar AutoStrad units and four<br />

manually operated Kalmar straddle carriers,<br />

was booked in the <strong>2019</strong> first quarter intake<br />

with parent company Cargotec.<br />

Delivery of the machines is set for the<br />

Michael Jovicic indicated the deal cemented<br />

an ongoing relationship.<br />

“We’ve been relying on Kalmar’s<br />

innovative, reliable straddle carrier<br />

solutions to keep our automated and<br />

manual operations running safely and<br />

efficiently for many years,” Mr Jovicic said.<br />

“When it came to considering our<br />

options for renewing our straddle carrier<br />

fleet, it was a straightforward decision to<br />

second quarter of 2020.<br />

continue our long-standing collaboration.”<br />

Patrick operates terminals at Fisherman<br />

Kalmar senior vice president automation<br />

Island in Brisbane, Port Botany in Sydney,<br />

and projects Tero Kokko said the company<br />

East Swanson in Melbourne and at<br />

had “developed a highly successful<br />

Fremantle in Western Australia.<br />

partnership with Patrick Terminals over the<br />

Four of the AutoStrads are to operate<br />

years, with our straddle carrier solutions<br />

at Brisbane and four at Sydney, while the<br />

forming the backbone of the fleet at their<br />

manual straddle carriers are set to ply their<br />

terminals”.<br />

trade at Melbourne.<br />

“We have come a long way since the<br />

The new machines are part of Patrick<br />

first ever commercial operation of the<br />

Terminals’ fleet renewal program and are<br />

Kalmar AutoStrad at the company’s<br />

to join the company’s current fleet of more<br />

Brisbane terminal, and we are delighted to<br />

than 120 Kalmar straddles.<br />

continue the story with this new order,”<br />

Patrick Terminals chief executive<br />

Mr Kokko said.<br />

Kalmar<br />

10 <strong>May</strong> <strong>2019</strong><br />

thedcn.com.au


NEWS IN BRIEF<br />

K Line’s new ro-ro<br />

arrives down under<br />

Japanese carrier K-Line’s new ro-ro ship,<br />

Niagara Highway V1 (IMO 9832638), recently<br />

made its maiden voyage around Australia.<br />

This followed its recent delivery from<br />

Imabari Shipbuilding Co in Japan.<br />

The vessel first docked at Townsville<br />

where it received a warm welcome before<br />

leaving for Brisbane.<br />

From Brisbane it sailed south to Port<br />

Kembla, Melbourne and Adelaide before<br />

returning to Japan.<br />

Port of Townsville acting general<br />

manager business development, David<br />

Sibley said the arrival of the new vessel<br />

demonstrated the global demand on port<br />

infrastructure.<br />

The Niagara Highway<br />

“Globally ships are being built bigger and<br />

better,” Mr Sibley said.<br />

“This resonates with the prediction<br />

of trade volume to treble over the next<br />

30 years.”<br />

Mr Sibley said the channel upgrade<br />

project ensured Townsville remained<br />

northern Australia’s transport link to<br />

the world.<br />

According to K Line, Niagara Highway is<br />

among the company’s new generation large<br />

size pure car carrier vessel to operate on the<br />

Japan–Australia trade.<br />

Flagged in Panama, the vessel has a<br />

beam of 37.2 metres and an overall length<br />

of 200 metres.<br />

Maria James from Port of Townsville presents a plaque<br />

to master of the Niagara Highway, Vincent MM Raj.<br />

GOVERNMENT MAKES<br />

COMMON CAUSE<br />

WITH WHARFIES<br />

OVER WIND PROJECT<br />

A decision by the federal<br />

government to explore the possibility<br />

of a wind farm off the coast of<br />

Gippsland in Victoria received praise<br />

from the Maritime Union.<br />

Energy minister Angus Taylor<br />

recently announced Offshore<br />

Energy Pty Ltd would be allowed to<br />

determine if Australia could be part<br />

of the offshore wind farm sector in<br />

the long term.<br />

“Offshore wind farms could<br />

provide Australia with significant<br />

new investment and employment<br />

possibilities while also contributing to<br />

the stability of the grid and lowering<br />

power prices,” Mr Taylor said.<br />

“Offshore wind is more plentiful and<br />

consistent than onshore wind and<br />

aligns better with energy demand.”<br />

With this licence, OEPL is allowed<br />

to assess wind resources and sea<br />

bed conditions. It has not been given<br />

any rights to develop or operate an<br />

offshore wind farm.<br />

The licence requires OEPL to do<br />

“extensive consultation” with the<br />

community and industry before<br />

undertaking any activities.<br />

MUA deputy national secretary<br />

Will Tracey said the granting of this<br />

exploration license was a “welcome<br />

step towards the construction of<br />

Australia’s first offshore wind farm”.<br />

“This outcome is the result of<br />

months of lobbying by unions<br />

and community groups who have<br />

been highlighting the potential for<br />

an offshore wind sector to create<br />

thousands of quality jobs,” Mr<br />

Tracey said.<br />

“Even the anti-renewable energy<br />

forces within the federal government<br />

have realised the potential of this<br />

project, finally allowing the essential<br />

investigation of sea bed conditions<br />

and wind and wave conditions that<br />

are needed before it can proceed to a<br />

detailed planning stage.”<br />

K-Line; Port of Townsville; Pauljrobinson<br />

12 <strong>May</strong> <strong>2019</strong><br />

thedcn.com.au


Helping economies grow<br />

and customers prosper.<br />

We enable smarter trade to<br />

create a better future for all.


NEWS IN BRIEF<br />

Stevedores set to axe “likely unfair contract terms”<br />

Stevedores DP World Australia,<br />

Hutchison Ports Australia and Victoria<br />

International Container Terminal agreed<br />

to change contracts with land transport<br />

businesses after the competition regulator<br />

raised concerns they could be unfair.<br />

DPWA and Hutchison had contract<br />

terms allowing a stevedore to vary terms<br />

in agreements without notice, including<br />

fees paid by land transport operators.<br />

DPWA and Hutchison also had terms<br />

limiting their liability for loss or damage<br />

suffered by transport businesses, while<br />

not offering the transport businesses<br />

the same protections.<br />

VICT’s contract had a term requiring<br />

transport businesses to indemnify VICT<br />

for loss or damage, without a reciprocal<br />

obligation.<br />

The DPWA standard agreement also<br />

required the transport businesses<br />

to pay the stevedore’s legal costs<br />

and expenses, in situations where<br />

such payments normally would be<br />

determined in court.<br />

The ACCC says the three stevedores<br />

cooperated with the ACCC investigation.<br />

Hutchison made its commitments in a<br />

court enforceable undertaking and is to<br />

place a corrective notice on its website<br />

as well as run a compliance program.<br />

“Thousands of transport businesses,<br />

which have standard form agreements<br />

with DP World, Hutchison and VICT,<br />

stand to benefit from these changes,”<br />

ACCC commissioner Sarah Court said.<br />

“The handling of containers has a<br />

direct bearing on the cost of goods<br />

in Australia and the competitiveness<br />

of Australian exports, so it is crucial<br />

for businesses and consumers that<br />

the supply chain operates fairly and<br />

efficiently.”<br />

The ACCC began its investigation early<br />

last year following concerns raised about<br />

alleged unfair terms.<br />

The ACCC’s 2018 Container Stevedore<br />

Monitoring Report noted the ACCC<br />

was assessing unfair contract terms<br />

within the industry. The ACCC has now<br />

concluded that assessment.<br />

Shipping registration changes take effect<br />

FOR<br />

SALE<br />

The Australian Maritime Safety Authority has reminded industry<br />

that changes have been made to shipping registration laws,<br />

effective 1 April.<br />

According to AMSA, there are no changes to the way that ships<br />

are registered on the Australian registers unless you do not know<br />

the vessel’s full ownership history.<br />

But if you buy or acquire a vessel and do not know its full<br />

ownership history you must lodge a notice of intention to register a<br />

ship to be published on the AMSA website.<br />

This is a change to the old requirement for a gazette notice to<br />

be submitted to the Federal Register of Legislation. If you have a<br />

claim to a ship for which a notice of intention to register has been<br />

received you can submit objections to an intention to register<br />

to AMSA.<br />

Meanwhile the way you close a registration—for ships not<br />

required to be registered— also has changed. It is now possible<br />

for the owner to apply to close a registration if the Australian<br />

registration is no longer required.<br />

“Previously this application could only be made by the registered<br />

owner,” AMSA stated.<br />

More information can be found by visiting the AMSA website.<br />

INDUSTRY EVENTS<br />

<strong>2019</strong> EVENT<br />

23-24 <strong>May</strong> AFIF <strong>2019</strong> National Conference and Gala Dinner, Melbourne afif.asn.au<br />

26-27 June Ports Business & Operational Conference, Townsville portsaustralia.com.au/news/conference/<br />

business-operations<br />

10-13 September Australasian Coasts & Ports <strong>2019</strong>, Hobart coastsandports<strong>2019</strong>.com.au<br />

8-10 October Pacific <strong>2019</strong> International Maritime Conference, Sydney pacificexpo.com.au<br />

28 October – 1 November AMPI Pilotage & Ports Logistics Conference, Sydney ampi.org.au/AMPI<strong>2019</strong><br />

14 November <strong>2019</strong> Australian Shipping & Maritime Industry Awards, Melbourne dcnawards.com.au<br />

To notify <strong>DCN</strong> of events please email us at editorial@paragonmedia.com.au<br />

DOGMAge<br />

14 <strong>May</strong> <strong>2019</strong><br />

thedcn.com.au


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INDUSTRY OPINION<br />

Measures to control the brown<br />

marmorated stink bug<br />

A series of enhanced anti-stink bug measures are set to provide added challenges<br />

to industry, writes Andrew Crawford<br />

AS MANY READERS KNOW, THE<br />

response to the brown marmorated stink<br />

bug 2018-<strong>2019</strong> season by the Department<br />

of Agriculture and Water Resources<br />

exposed deficiencies in processes. Since the<br />

implementation of the BMSB emergency<br />

measures, FTA members witnessed a<br />

deterioration of service levels across the<br />

department, with key import services such<br />

as bookings and inspections most affected.<br />

A DEFICIENCY SUBMISSION<br />

Based on member feedback, FTA<br />

provided a submission to identify those<br />

deficiencies and provide a clear list of<br />

recommendations and considerations<br />

for the inspector-general of biosecurity.<br />

While many recommendations related<br />

to the department’s staffing levels,<br />

others sought to optimise and expand on<br />

existing initiatives, such as the Approved<br />

Arrangement scheme, the 19.2. Automatic<br />

Entry Processing for Commodities, Cargo<br />

Online Lodgement System and the Highly<br />

Compliant Importer Project. Strong, fair<br />

and consistent compliance is essential to<br />

underpin these systems and arrangements<br />

to allow industry an increased<br />

responsibility to manage biosecurity risks.<br />

STRONG COMPLIANCE RECORD<br />

FTA also advocated that increased<br />

responsibility should be given to those that<br />

have a strong compliance record. We now<br />

know that the upcoming <strong>2019</strong>-2020 season<br />

will be expanded to include more target risk<br />

countries. The list of countries includes the<br />

same as 2018/19, however another 23 have<br />

been added. The entire list is as follows:<br />

United States of America, Czech<br />

Republic, France, Canada, Georgia, Russia,<br />

Albania, Germany, Serbia, Andorra,<br />

Greece, Slovakia, Armenia, Hungary,<br />

Slovenia, Austria, Italy, Switzerland,<br />

Azerbaijan, Kosovo, Luxembourg,<br />

Belgium, Liechtenstein, Romania, Bosnia<br />

Andrew Crawford, head of border and<br />

biosecurity, Freight & Trade Alliance<br />

and Herzegovina, Macedonia, Spain,<br />

Bulgaria, Montenegro, Turkey, Croatia,<br />

The Netherlands, Japan (heightened vessel<br />

surveillance will be the measure applied).<br />

UPDATE ON BIOSECURITY LEVY<br />

It now has been confirmed that the start date of the<br />

contentious biosecurity levy has been delayed. In the recent<br />

Federal budget, it was announced that the implementation<br />

date of the biosecurity levy announced in last year’s budget has been changed<br />

from 1 July <strong>2019</strong> to 1 September <strong>2019</strong>. This delay is to allow the Industry Steering<br />

Committee (of which Paul Zalai, one of FTA’s directors, is a member) the opportunity<br />

to make recommendations to the minister. The quantum and method of collection<br />

of the biosecurity levy could well be impacted by a change of government.<br />

BACKGROUND<br />

The Biosecurity Import Levy was announced in the 2018 Federal Budget with the<br />

aim to collect $325m over three years from a start date of 1 July <strong>2019</strong>. Since that<br />

time there has been significant controversy surrounding the implementation of<br />

the levy, ultimately leading to the Department of Agriculture and Water Resources<br />

commissioning an independent review by Pegasus Economics. Its report was<br />

publicly released on Friday 29 March <strong>2019</strong>.<br />

FTA was privileged to be appointed by the minister to participate with eight other<br />

industry representatives in the committee led by an independent chair (David<br />

Trebeck) and supported by Pegasus Economics.<br />

FTA will continue to be heavily involved in discussions and planning and will<br />

provide readers with further updates as they emerge.<br />

MANDATORY OFFSHORE TREATMENT<br />

The other significant difference for next<br />

season could be the introduction of<br />

mandatory offshore treatment of target<br />

high risk goods shipped in sealed six-sided<br />

containers, as LCL (less than container<br />

load) and FAK (freight of all kinds). This<br />

was the department’s preferred position<br />

for 2018/19 and FTA and others advocated<br />

against this due to several commercial<br />

considerations. FTA will continue to work<br />

with the department on this.<br />

SAFEGUARDING ARRANGEMENTS<br />

The department is developing policies to<br />

allow for certain goods and supply chains<br />

to be recognised under safeguarding<br />

arrangements for the <strong>2019</strong>–20 season. A<br />

trial by invitation will be conducted of the<br />

arrangements. We expect more detailed<br />

information in the next few months.<br />

Ruth Swan; FTA<br />

16 <strong>May</strong> <strong>2019</strong><br />

thedcn.com.au


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INDUSTRY OPINION<br />

Meeting the low<br />

sulphur fuel challenge<br />

Angela Gillham examines the trend towards cleaner fuels<br />

and what it is likely to mean in practice<br />

WHILE MOST TIGHTENING OF<br />

ship emissions standards has occurred<br />

in the northern hemisphere, as urban<br />

encroachment in Australia continues, so<br />

will community pressure on authorities to<br />

act here.<br />

It is worth comparing Australian fuel<br />

sulphur standards from other emissions<br />

compliance options will have an impact<br />

on demand for low sulphur fuel and will<br />

influence supply and price. It is important<br />

to note the IMO fuel availability study,<br />

commissioned in the lead up to the decision<br />

on the sulphur cap implementation date,<br />

found the global refining industry has<br />

capacity to meet projected global demand.<br />

sources. While there has been a tightening<br />

of global fuel standards and emissions<br />

regulations for international shipping, the<br />

current Australian requirement for sulphur<br />

content in automotive diesel remains<br />

considerably more stringent (Table 1).<br />

This is likely to attract further community<br />

attention in the future.<br />

LOW SULPHUR FUEL<br />

Fuel low enough in sulphur to be<br />

compliant, in reality, can mean different<br />

things. Lower sulphur content can be<br />

achieved by blending low sulphur fuels and<br />

heavy fuel oil or further refining HFO, to<br />

produce gasoil (diesel). Sulphur content is<br />

just one of many specifications and there<br />

IMPACT ON INDUSTRY<br />

Total annual marine fuel demand is around<br />

400m tonnes and climbing. The global<br />

sulphur cap will have a significant impact<br />

and as suppliers attempt to meet this new<br />

mix of marine fuel demand there will be a<br />

price increase, possibly a significant one.<br />

A recent survey of vessel operators by<br />

MIAL found average expectation of the cost<br />

differential between HSFO and compliant<br />

fuel was $250, and estimates ranged from<br />

$75 to $740 per tonne.<br />

There are several compliance options<br />

available to shipowners, including using<br />

low sulphur fuel, alternative fuels such as<br />

liquefied natural gas and ‘drop in’ biofuels<br />

and renewable diesel, and exhaust gas<br />

cleaning systems – each having technical<br />

challenges, limitations and accessibility<br />

issues. The degree of uptake of each of these<br />

are some safety concerns around the use of<br />

blended fuels to achieve the 0.5% limit, the<br />

properties of these fuels and compatibility<br />

with existing marine diesel engines.<br />

Work is underway to update guidelines<br />

relating to the relevant ISO specifications<br />

to address the safety concerns using new<br />

fuel blends.<br />

In Australia, low sulphur diesel options<br />

are limited as is refining capacity. Along<br />

with some high sulphur heavy fuel oil and<br />

petrol, the major Australian fuel suppliers<br />

import one grade of diesel at 0.001%<br />

sulphur – this is automotive diesel – a<br />

costly option. Fuel suppliers have indicated<br />

they are planning to have low sulphur fuel<br />

oil available at selected Australian ports,<br />

but ship operators wanting access to this<br />

product need to communicate this early to<br />

ensure capacity.<br />

TABLE 1: FUEL SULPHUR LIMITS IN AUSTRALIA<br />

REGULATED LIMIT<br />

DIESEL USE % PPM<br />

Automotive diesel 0.001 10<br />

Current international shipping 3.5 35000<br />

2020 international shipping 0.5 5000<br />

2020 international shipping ECA 0.1 1000<br />

Angela Gillham, deputy CEO, Maritime Industry<br />

Australia<br />

LNG<br />

LNG contains virtually no sulphur and, in<br />

recognition of the opportunities that LNG<br />

represents particularly for Australia, the<br />

number of newbuilds planned or operating<br />

within the Australian market is growing.<br />

Perceived limitations are loss of cargo<br />

space due to the larger fuel storage area and<br />

current lack of distribution networks and<br />

bunkering infrastructure.<br />

LNG has the added benefit of burning<br />

with about two thirds of the greenhouse<br />

gas emissions of diesel. LNG is a powerful<br />

greenhouse gas, however, and methane<br />

slippage has been flagged as an issue.<br />

BIOFUELS AND RENEWABLE DIESEL<br />

The use of biofuels and renewable diesel<br />

presents a significant opportunity with<br />

little to no sulphur content. There are a<br />

variety of drop-in biofuels and renewable<br />

diesel products available that can be used<br />

in existing marine diesel engines. The main<br />

challenge for wide-scale adoption of these<br />

fuels is the scalability of production to<br />

meet the large volumes required.<br />

MIAL<br />

18 <strong>May</strong> <strong>2019</strong><br />

thedcn.com.au


WOMEN IN MARITIME<br />

Natalie Godward with Bruce Krumrine senior vice<br />

president of port operations for Holland America Group<br />

Natalie Godward (third from left) at the 2018 Eden Business & Community award.<br />

Cruise Eden won the Volunteer/Community Service Award<br />

PROFILE: Natalie Godward<br />

This month we are profiling Natalie Godward, cruise development manager<br />

for Port Authority of New South Wales. By Kendall Carter<br />

NATALIE GODWARD WORKS FROM<br />

visits from the expedition and luxury segments.<br />

“It is very humbling to see how a<br />

Eden on the beautiful south coast of New<br />

In Eden, both Federal and State funding<br />

community comes together to welcome<br />

South Wales, a wonderful natural harbour<br />

has enabled a new cruise terminal to be<br />

cruise visitors,” Natalie said.<br />

and a developing cruise destination. She<br />

built, where cruise vessels are now able to<br />

“In Eden for example, local volunteers,<br />

manages cruise visits into all the regional<br />

berth alongside instead of remaining at<br />

including individuals and businesses, get<br />

ports along the NSW coastline and runs<br />

anchor as used to be the case.<br />

up very early to be there and offer the<br />

Cruise Eden for the Sapphire Coast in the<br />

The Port Authority, with Natalie in<br />

best possible experience for visiting cruise<br />

far south.<br />

the lead, is now scoping the maritime<br />

passengers.”<br />

viability of several locations up and down<br />

GARDEN OF EDEN<br />

the state’s coast. On the north coast of<br />

BIGGER PICTURE<br />

Natalie took the role of Cruise Eden<br />

NSW Natalie recently has been examining<br />

Natalie is supportive of the Nautical<br />

coordinator about five years ago when it<br />

the possibilities for visits to Yamba, Coffs<br />

Institute’s Women in Maritime initiative<br />

started to become too much for volunteers<br />

Harbour and South West Rocks, working<br />

and believes it has helped remove<br />

in Eden. Initially this was a part-time<br />

with local stakeholders and communities<br />

perceived and actual barriers to entry in a<br />

position while she was working for Sapphire<br />

along with interested cruise lines to tailor<br />

traditionally male-dominated industry, by<br />

Coast tourism. Soon the role was full-time<br />

appropriate shoreside experiences for the<br />

highlighting the success stories of women.<br />

and she was organising all the shoreside<br />

passengers. All the other NSW regional<br />

She recognises you don’t have to go to sea<br />

aspects of cruise ships visiting Eden as well<br />

ports will also soon be examined to see how<br />

to be part of this industry and there are<br />

as being involved in attracting more cruise<br />

their potential may be harnessed.<br />

many varied roles and the opportunities for<br />

lines to the port.<br />

women to get involved. Natalie believes the<br />

Port Authority of NSW has always been a<br />

AMERICAN INSPIRATION<br />

maritime industry is fascinating and ever<br />

great supporter of Natalie’s work for Cruise<br />

Natalie recently attended the SeaTrade<br />

changing, with long term opportunities for<br />

Eden and last year, as the local development<br />

Cruise Global Conference in Miami Beach<br />

growth. She would definitely recommend it<br />

of the port was ramping up, they employed<br />

Florida, where she was extolling the virtues<br />

as a career for women and has been actively<br />

her directly as their cruise development<br />

of visiting NSW to cruise companies.<br />

introducing the industry to her daughters<br />

manager with the expanded role of not only<br />

The aim was to show off the many<br />

through her role, showing them what she<br />

looking after Eden cruise visits but also<br />

opportunities along the coast and bring<br />

does, and will encourage them to consider<br />

cruise visits to all the NSW regional ports.<br />

more cruise ships to the region.<br />

the maritime industry as a career when the<br />

Natalie especially enjoys working<br />

time comes.<br />

‘WHOLE COASTLINE’ OPPORTUNITIES<br />

with regional communities to create<br />

Natalie would thoroughly recommend<br />

Cruising is an expanding area and in NSW<br />

opportunities for cruise ship visits that<br />

getting involved in the industry to women<br />

cruise ships regularly visit Sydney as well<br />

boost local economies. She explains cruise<br />

starting out on their careers as well as<br />

as Newcastle and now more recently,<br />

vessels come in all shapes and sizes and<br />

those considering a “sea change”. In<br />

Port Kembla.<br />

sometimes it might just be a case of 80<br />

her own words, “Through chance and<br />

Natalie passionately believes that there<br />

is a whole coastline of opportunities and<br />

communities in NSW that would welcome<br />

cruise ships with open arms, especially<br />

people getting off a ship, eating their lunch<br />

in the local pub and visiting a few local<br />

stores, but even so it creates a great vibe<br />

and generally the community loves it.<br />

opportunity I fell into the maritime<br />

industry and feel very grateful for that.<br />

This is the best job I have ever had, and I<br />

love working in the industry”.<br />

NG; Cruise Eden<br />

20 <strong>May</strong> <strong>2019</strong><br />

thedcn.com.au


Delivering world-class<br />

port and marine services<br />

in New South Wales<br />

Sydney Harbour | Port Botany | Newcastle Harbour | Port Kembla | Port of Eden | Port of Yamba<br />

www.portauthoritynsw.com.au<br />

Follow us @portauthoritynsw<br />

Piloting a vessel into Newcastle Harbour,<br />

New South Wales


ELECTION <strong>2019</strong><br />

What our sector leaders think<br />

Industry group leaders have their say on what should<br />

be the priorities for the next government of Australia<br />

Rod Nairn, CEO,<br />

Shipping Australia<br />

The best interests of Australia are served<br />

by focusing on optimising the benefits that<br />

international shipping provides. Shipping<br />

should not be used as a political pawn.<br />

Shipping Australia is disappointed<br />

that both the Coalition and Labor are<br />

committed to imposing a new biosecurity<br />

levy, an inefficient new tax on imports<br />

which will cost every Australian a lot<br />

more than if the same amount of revenue<br />

was raised through an efficient tax such<br />

as GST or income tax. But the public<br />

has no escape from this approach as it<br />

seems one of the only areas of bipartisan<br />

agreement is how to extract money from<br />

ordinary Australians without them<br />

realising it.<br />

Shipping Australia is also concerned<br />

the Australian public is being misled over<br />

the contribution of the international<br />

shipping fleet to Australia’s economic<br />

wellbeing.<br />

Australia’s maritime security is best<br />

served by a strong Navy and Australia’s fuel<br />

security is best served by greater onshore<br />

storage reserves and clever use of ships of<br />

multiple flags to carry our fuel imports. The<br />

more flags we utilise, the more resilient the<br />

fleet and the better Australia is protected.<br />

If some nations become unable or unwilling<br />

to trade with Australia, there still will be<br />

many others who will. The alternative, to<br />

carry all our oil supplies in Australianflagged<br />

and crewed ships would be foolish.<br />

It would leave Australia in a position of<br />

being held to ransom by a militant union,<br />

even when there is no war.<br />

Domestic freight policy should include<br />

promotion of shipping as a mode. As an<br />

island nation, Australia is dependent<br />

on shipping for most of its trade.<br />

Shipping should be acknowledged as the<br />

preferred mode of long-haul domestic<br />

freight movement because it is more<br />

economical, more efficient, safer and more<br />

environmentally sustainable than other<br />

transport modes. It is also able to deliver<br />

oversized, heavy and bulky cargo with<br />

minimum impact.<br />

It is imperative for any elected<br />

government to include coastal shipping,<br />

alongside road and rail, in any business<br />

case related to infrastructure investment<br />

projects. Promoting modal shift to sea<br />

freight must be part of its national freight<br />

priorities. Shipping Australia would be<br />

happy to see Australian flag ships operating<br />

at a profit in domestic and international<br />

markets. But the fact is this will not<br />

happen until the ships are automated to<br />

reduce crew costs. Any talk of subsidising<br />

Australian flag ships to carry cargo is<br />

ludicrous. That would be asking ordinary<br />

tax-paying Australians to subsidise wages<br />

of a chosen few.<br />

Commercial shipping is a service,<br />

it is a means to an end, not an end in<br />

itself. Shipping is needed to move cargo<br />

internationally or domestically. You can<br />

control it through regulation, but you<br />

don’t have to own it to use it.<br />

We would like to see a simple regulatory<br />

environment which encourages a cost<br />

effective and flexible shipping service<br />

to operate for the benefit of Australian<br />

producers and customers. The objectives<br />

of the legislation should be prioritised<br />

based on the provision of public benefit.<br />

Mike Gallacher, CEO,<br />

Ports Australia<br />

As both major parties start to unveil their<br />

platforms for the upcoming election,<br />

we already know one thing. Central to<br />

both their platforms for election are the<br />

promises to reduce congestion and create<br />

jobs. The question is what policies are they<br />

looking at to achieve these promises?<br />

Our sector knows that the freight<br />

and supply chain is an important key to<br />

delivering on both these promises and<br />

more. We know that freight shares the<br />

roads and rails with commuters, and we<br />

know freight makes up a considerable part<br />

of the cost of doing business. Therefore, if<br />

you improve the regulatory framework and<br />

target investments in freight, allowing it to<br />

operate more efficiently, we know that we<br />

can reduce congestion and the cost of<br />

doing business.<br />

22 <strong>May</strong> <strong>2019</strong><br />

thedcn.com.au


Teresa Lloyd, CEO,<br />

Maritime Industry<br />

Australia<br />

In addition MIAL calls on the next<br />

federal government to walk away from<br />

the Biosecurity Levy and fund this<br />

departmental need from consolidated<br />

revenue.<br />

Kirk Coningham,<br />

CEO, Australian<br />

Logistics Council<br />

Travellight; Ian Ackerman x 2; MIAL; ALC<br />

It’s up to us to make sure both parties<br />

have heard our solutions and that we<br />

share them not just with the elected<br />

representatives but also with the voters<br />

around us. For us, at Ports Australia, we<br />

would like to see congestion addressed<br />

through improved transport connectivity,<br />

corridor protection and planning around<br />

urban encroachment. On top of that a<br />

serious consideration on how ports through<br />

coastal shipping can move non-time<br />

sensitive goods around the country along<br />

the blue highway. Through increased use<br />

of the blue highway, we see an opportunity<br />

for more jobs. Jobs on and off the water<br />

and in both metro and regional cities.<br />

And through these jobs, we can address<br />

the challenge of fostering new careers in<br />

the maritime industry so we can begin<br />

accumulating the maritime skills necessary<br />

for operating an island nation.<br />

At the recent Australian Logistics<br />

Council Forum in Melbourne, a statement<br />

on bipartisanship surrounding the<br />

importance of the country’s freight<br />

and supply chain strategy was released<br />

including comments from both Mr<br />

McCormack and Mr Albanese. And while<br />

both indicated their support for the work<br />

of the freight and supply chain strategy,<br />

it is imperative the wheels keep rolling to<br />

ensure this reports delivery and adoption.<br />

We believe it is vital that the opposition<br />

be briefed on the report’s findings to<br />

guarantee, irrespective of who wins the<br />

federal election, both parties funding<br />

priorities are identified and aligned with<br />

the current draft of the National Freight<br />

and Supply Chain Strategy.<br />

MIAL’s vision is for a strong, thriving and<br />

sustainable maritime enterprise in the<br />

region. This activity can occur anywhere,<br />

coastal, offshore and international; and<br />

should encompass everything – freight,<br />

tourism, passenger movement, port and<br />

harbour services, offshore oil and gas,<br />

construction, scientific/research, essential<br />

services, and government services.<br />

MIAL’s 10-point plan to achieving this<br />

is outlined in our priority reforms for the<br />

next federal government, as follows:<br />

• Acknowledge and address the maritime<br />

skills shortages - skilled mariners must<br />

be secured for the nation and policy<br />

and financial support is required to<br />

achieve this.<br />

• Establish a strategic fleet - these vessels<br />

will provide the platforms on which our<br />

skilled seafarers can train and work,<br />

assets for the nation in times of need<br />

and secure certain supply chains.<br />

• Make the AISR competitive and fit for<br />

purpose for Australian circumstances,<br />

including operating in coastal activities.<br />

• Make corporate income tax settings<br />

internationally competitive and<br />

maximise the benefit to Australia by<br />

broadening the base of activity that<br />

qualifies to include all vessels regardless<br />

of what “work” they do.<br />

• Extend seafarer income tax settings to<br />

allow more Australian seafarers to work<br />

overseas.<br />

• Abolish Seacare – this regime is out of<br />

step with community standards and too<br />

small to survive. An orderly exit must<br />

commence to avoid an implosion of<br />

the scheme.<br />

• Rewrite the domestic commercial vessel<br />

laws to make them simple and effective.<br />

• Amend customs requirements to benefit<br />

the country not drive business away.<br />

• Adjust Coastal Trading Policy - remove<br />

the red tape, remove the need to pay<br />

Part B wages, move away from port<br />

pairs, and more.<br />

• Manage port pricing to avoid<br />

monopolistic behaviour.<br />

The next three years will be critical in<br />

determining whether Australia is able to<br />

boost the efficiency and safety of its end-toend<br />

supply chain and meet the challenges<br />

associated with a growing freight task.<br />

Both the Coalition and the Labor Party<br />

have unambiguously committed to finalise<br />

and implement the National Freight and<br />

Supply Chain Strategy as soon as possible.<br />

That means the next parliament must<br />

act to deliver the policy reforms needed<br />

to ensure that strategy delivers the right<br />

outcomes for industry and the community.<br />

This includes the federal government<br />

taking more of a lead in planning issues,<br />

so the operation of freight infrastructure<br />

is unimpeded by urban encroachment and<br />

traffic congestion.<br />

We need to get on with delivering a<br />

consistent national regulatory approach to<br />

road, rail and air freight, and ensure our<br />

coastal shipping arrangements actually<br />

deliver the intended outcomes.<br />

Monitoring and measuring supply<br />

chain performance through enhanced<br />

data collection is crucial – and the next<br />

parliament must swiftly prioritise the<br />

establishment of the National Freight Data<br />

Hub outlined in the recent federal Budget.<br />

This will allow us to make more informed<br />

decisions about infrastructure investment.<br />

Australia must also invest in skills<br />

training to build a sustainable workforce<br />

for the industry, capable of embracing the<br />

safety and productivity advantages offered<br />

by evolving technologies, including electric<br />

and high productivity vehicles. Securing<br />

these priorities will require leadership<br />

from whichever side forms government –<br />

and cooperation from other parties - to<br />

implement reforms that will help the<br />

freight sector deliver for consumers, and<br />

take advantage of Australia’s growing<br />

export opportunities.<br />

thedcn.com.au <strong>May</strong> <strong>2019</strong> 23


INDUSTRY OPINION<br />

A maritime vision<br />

Aspirations to revive Australian-flagged shipping need to be<br />

married with commercial reality, writes Llew Russell<br />

THE LEADER OF THE OPPOSITION,<br />

include obligations to pay wages, for<br />

Bill Shorten has committed Labor to<br />

example, in accordance with employment<br />

“making Australia a seafaring nation<br />

contracts, which normally are those<br />

again”. The statement made in late<br />

recommended by the International<br />

February was short on detail. Reference<br />

Transport Federation. There are about<br />

was made to building a national strategic<br />

1,650,000 seafarers in the world engaged<br />

reserve with many more Australian ships.<br />

in international shipping and the majority<br />

A little more detail was contained in the<br />

of ratings come from the Philippines being<br />

Maritime Union of Australia news release<br />

just over 20%. In terms of all ranks, China<br />

of 11 March. The union welcomed Labor’s<br />

takes the lead, then comes the Philippines,<br />

commitment to creating a government-<br />

Indonesia, Russia, Ukraine and India and<br />

owned national fuel reserve to meet<br />

then many nationalities of much smaller<br />

Australia’s obligation of 90-day fuel stocks<br />

percentages.<br />

in accordance with International Energy<br />

The 2015 BIMCO/ICS manpower report<br />

Agency requirements as well as creating a<br />

found there was a shortage of 16,500<br />

national strategic fleet that will include oil<br />

officers worldwide but an oversupply of<br />

tankers and gas carriers.<br />

117,000 ratings. This trend was expected to<br />

continue into the future.<br />

DEFENCE OUTLOOK<br />

The International Collective<br />

Llew Russell, AM<br />

There is no mention in these statements<br />

Bargaining Agreement between employee<br />

as to how such policies would fit within<br />

(the International Transport Workers<br />

four ro-ro vessels in Adelaide capable of<br />

our current defence strategic outlook.<br />

Federation) and employer representatives<br />

carrying around 1200 TEU. Such vessels<br />

History tells us that in regional conflicts<br />

for <strong>2019</strong>-2020 sets out the recommended<br />

would have flexibility to service countries<br />

there have been no problems with<br />

minimum wages. These include US$1602<br />

in a civil emergency, for example, without<br />

requisitioning foreign-flagged vessels to<br />

per month in total for an able seaman<br />

fully established port infrastructure. There<br />

maintain supply to our forces. During<br />

and US$6536 per month for a master.<br />

could be extra accommodation for cadet<br />

the East Timor conflict, for example, the<br />

While low by Australian standards, to put<br />

sea training and for naval officers to obtain<br />

significant majority of vessels chartered<br />

these wages in perspective, a doctor in the<br />

experience in cargo handling. Decks also<br />

by the Commonwealth to deliver supplies<br />

Philippines would earn a similar wage to an<br />

could be strengthened to accommodate<br />

to Dili harbour were foreign-flagged. The<br />

able seaman under this agreement. Nearly<br />

tanks etc. The vessels could be employed<br />

issue goes deeper, even leaving aside the<br />

all of the seafarers from the Philippines<br />

in a clockwise rotation on the Australian<br />

potential drain on the public purse. If our<br />

send most of their wages to their families.<br />

coast giving a fortnightly frequency and<br />

fuel supplies were put at risk by major<br />

avoiding the difficult west to east leg across<br />

economic or geopolitical disruptions how<br />

FLESH ON THE BONES<br />

the Great Australian Bight with its minimal<br />

would Australian-flagged vessels escape the<br />

I recall meeting with a group of<br />

demand for full containers.<br />

obvious forces impacting foreign-flagged<br />

young naval officers on an industrial<br />

An important aspect would be the<br />

tankers in terms of continued supply?<br />

familiarisation course many years ago when<br />

content of a binding agreement between<br />

we discussed the decline of the Australian<br />

the government and a commercial shipping<br />

LABOUR CONDITIONS<br />

flag and what could be done to remedy<br />

operator, selected by open tender. The<br />

The subject of labour conditions was briefly<br />

the situation. An officer came up with an<br />

shipping company would be expected to<br />

raised during a debate on an episode of<br />

idea that the government build vessels for<br />

insure, maintain and meet all operating<br />

the ABC series The Drum in March, when<br />

the Australian coastal trades that could<br />

expenses while the vessels are under their<br />

a journalist from The Guardian stated that<br />

be operated by a commercial shipping<br />

control. All the crew would be Australians.<br />

foreign seafarers were “paid a pittance” and<br />

company but with built-in design elements<br />

The service should be very competitive,<br />

this justified more Australian seafarers in<br />

to meet defence requirements; and could be<br />

given there would be no need to cover<br />

international trades. This is incorrect in<br />

requisitioned by the Commonwealth, with<br />

capital or leasing costs. This is just one<br />

nearly all cases and especially on vessels<br />

notice, to meet emergencies.<br />

idea but a failure to link Labor’s maritime<br />

visiting Australia as the government<br />

Putting some flesh on those bones, it is<br />

aspirations with commercial viability, trade<br />

takes seriously its obligations under the<br />

recommended the government commission<br />

facilitation and providing real value for the<br />

ILO Maritime Labour Convention. These<br />

a feasibility study into, say, building<br />

taxpayer, will be unsustainable.<br />

SAL<br />

24 <strong>May</strong> <strong>2019</strong><br />

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QUEENSLAND<br />

An ambitious growth agenda has been delivered on by the Port<br />

of Brisbane during the past 12 months, management says.<br />

Chief executive Roy Cummins told Daily Cargo News the<br />

port has one eye on the present and another on the future.<br />

“The work we are doing now to increase our channel and<br />

wharf capacity will help position the Port of Brisbane well for the<br />

future – we are determined that Brisbane will never be the limiting<br />

factor for shipping on Australia’s east coast,” Mr Cummins said.<br />

“The implementation of our world-leading vessel traffic<br />

management system, NCOS Online, has already enabled the port<br />

to welcome larger container vessels without the need to undertake<br />

capital dredging in the near-term.”<br />

Globally, there is increasing utilisation of container vessels larger<br />

than 15,000 TEU on east-west routes, resulting in a cascading<br />

effect of less than 15,000 TEU vessels onto other routes including,<br />

in time, the east coast of Australia.<br />

In 2017, Brisbane welcomed the 9500 TEU Susan Maersk and the<br />

port now welcomes regular calls from 8500 TEU vessels.<br />

“We have delivered cutting edge technology to maximise the<br />

capacity of our channel, while completing a $110m upgrade of<br />

our main road artery, Port Drive, and beginning groundworks<br />

on our brand new Brisbane International Cruise Terminal,” Mr<br />

Cummins said.<br />

“I’m also proud of our renewed focus on sustainability issues<br />

as well as a raft of new gender diversity policies, particularly our<br />

24-month female cadetship program.”<br />

At the same time the port has managed to sustain steady growth<br />

across almost all commodities except agricultural exports, which<br />

has slumped due to drought.<br />

The Port of Brisbane has gone from being a net exporter of<br />

agricultural seeds to a net importer. Export volumes of bulk<br />

agricultural grain decreased from 619,866 tonnes in 2017 to<br />

61,314 tonnes in 2018.<br />

“We have, however, seen a significant increase in bulk grain -<br />

wheat and barley - imports as shipments from inter-state, mostly<br />

Western Australia and South Australia, arrive at the port destined<br />

for farmers in south-west Queensland,” Mr Cummins said.<br />

Port of Brisbane is currently an “import port” for bulk grain,<br />

with import volumes exceeding one million tonnes in 2018<br />

compared with zero in 2016.<br />

Coal exports have remained fairly consistent during the last few<br />

years, reaching just over seven million tonnes in 2018.<br />

Container volumes have continued to rise over recent years,<br />

growing from 1.175m TEU in 2016 to 1.377m TEU in 2018.<br />

CAPACITY THROUGH TECHNOLOGY<br />

The hydrodynamic and vessel behaviour modelling from NCOS<br />

Online has enabled a 50cm increase in maximum container vessel<br />

draught in certain weather conditions.<br />

“NCOS is also giving us the ability to reduce vessel transit times<br />

across the Bay,” Mr Cummins said.<br />

For example, the port is now seeing almost 60% more bulk<br />

carriers leaving at 14 metres and transiting the channel in one tide,<br />

where previously it was done in two high tides – a significant time<br />

and cost saving for stakeholders such as exporters.<br />

“We have a comprehensive program of infrastructure<br />

improvement works underway to help us cater for future growth,”<br />

Mr Cummins said. These include the construction of a second<br />

swing basin (almost complete), a bollard replacement project for<br />

INVESTING<br />

IN QUEENSLAND’S<br />

FUTURE<br />

Preparing ports to continue increasing<br />

capacity is a key focus, as significant funds<br />

are sunk into accommodating bigger ships<br />

in Queensland, writes Paula Wallace<br />

26 <strong>May</strong> <strong>2019</strong><br />

thedcn.com.au


Port of Townsville<br />

The Port of Townsville<br />

thedcn.com.au <strong>May</strong> <strong>2019</strong> 27


QUEENSLAND<br />

the port’s container wharves, and further structural capacity<br />

analysis of existing wharf infrastructure.<br />

Port management believe it is only using a fraction of the<br />

capability of NCOS Online and is working with Seaport OPX<br />

(developers of NCOS) to explore new opportunities to use the<br />

platform to benefit customers and the port.<br />

“We’re also working with stakeholders on ways we can use data<br />

to make their operations more efficient,” Mr Cummins said.<br />

LANDSIDE EFFICIENCY<br />

“Improving landside efficiencies continues to be a key focus and<br />

securing a dedicated freight rail connection to the Port remains one<br />

of our highest strategic priorities,” Mr Cummins said.<br />

An overreliance on road remains one of the port’s biggest<br />

challenges. Currently, only 2.5% of containers arrive at Port of<br />

Brisbane by rail. With 5m TEU forecast to be handled through the<br />

port by 2050 - up from 1.35m TEU in 2017/18 – the port is seeking<br />

a “more sustainable road/rail balance”.<br />

“Making sure there is a dedicated freight rail corridor that<br />

connects to Inland Rail is central to this,” Mr Cummins said.<br />

However, the currently proposed Inland Rail route stops some<br />

38km away from the Port of Brisbane at Acacia Ridge.<br />

“As a nation, we can’t seriously call ourselves an export<br />

powerhouse if we don’t have the infrastructure in place to<br />

maximise our competitiveness,” Mr Cummins said.<br />

“And not connecting a freight rail line that crosses three states<br />

to the ports at either end is frankly ridiculous. We have a oncein-a-generation<br />

opportunity to deliver enormous benefits to both<br />

community and industry by connecting the Port of Brisbane to<br />

Inland Rail by a dedicated freight rail corridor.<br />

“We could provide truly nation-building infrastructure that<br />

supports trade growth while taking thousands of trucks off<br />

already-congested roads.”<br />

A joint state-federal working group is currently considering<br />

corridor options to the Port of Brisbane, and state and local<br />

governments have jointly put forward a blueprint document for<br />

a South-East Queensland City Deal, which includes a dedicated<br />

freight rail connection to the Port of Brisbane.<br />

GATEWAY TO THE NORTH<br />

One of the highlights this year for the Port of Townsville was<br />

the start, in April, of its first weekly container service. The ANL<br />

AAX2 service calls into Ho Chi Minh City, Port Kelang (Malaysia),<br />

Singapore, Jakarta, Brisbane, Sydney and Townsville.<br />

GLADSTONE INDIGENOUS AGREEMENT RECOGNISED ON WORLD STAGE<br />

Nominated in the <strong>2019</strong> IAPH World<br />

Ports Sustainability Awards, Gladstone<br />

Ports Corporation’s Indigenous Land<br />

Use Agreement was selected as one of<br />

three nominees to be put forward for a<br />

public vote.<br />

The ILUA was voluntarily established<br />

in 2014 between First Nations Bailai,<br />

Gurang, Gooreng Gooreng, Taribelang<br />

Bunda People Aboriginal Corporation<br />

and GPC to ensure responsible and<br />

respectful management of the lands and<br />

sea on which the port operates.<br />

“The project’s nomination is a huge<br />

honour and highlights the importance<br />

and success of the ILUA to bridge the gap<br />

between our community and GPC,” said<br />

Craig Walker, GPC acting chief executive.<br />

“Being shortlisted for this award helps<br />

recognise the progress made, not only at<br />

a local level but on the global stage and<br />

will hopefully inspire similar initiatives<br />

around the world.”<br />

The ILUA provides consent for<br />

grants of tenure and approvals for<br />

port development, in return for benefit<br />

payments.<br />

First Nations Bailai, Gurang, Gooreng<br />

Gooreng, Taribelang Bunda People<br />

Aboriginal Corporation Registered Native<br />

Title Body Corporate chairman Matthew<br />

Cooke said the ILUA places First Nations<br />

people at the forefront of economic<br />

development on traditional lands.<br />

Mr Cooke said the ILUA was<br />

underpinned by the principles of selfdetermination<br />

and empowerment for<br />

Aboriginal people.<br />

“We are decision makers at the table<br />

with the GPC,” Mr Cooke said.<br />

“Most importantly, the GPC ILUA<br />

ensure that First Nations people now<br />

share in the prosperity and benefits<br />

from port development and activity.”<br />

An example of how this works<br />

successfully is the Land and Sea<br />

Ranger Program. Run by the Gidarjil<br />

Development Corporation in Bundaberg<br />

and Gladstone, the program manages,<br />

Lee-Ann Dudley, indigenous affairs<br />

advisor, Gladstone Ports<br />

Corporation (left); painting entitled<br />

Our Journey (right)<br />

protects and improves the land and<br />

sea country, while also providing<br />

employment opportunities.<br />

“For the last 100 years GPC has<br />

proudly worked with and alongside our<br />

First Nations and is committed to the<br />

reconciliation journey,” Mr Walker said.<br />

“The ILUA program and GPC’s Stretch<br />

Reconciliation Action Plans are certainly<br />

the cornerstones of our indigenous<br />

affairs program, with supporting<br />

initiatives.<br />

“It is about building stronger,<br />

meaningful relationships through<br />

understanding, respect and acceptance,”<br />

he said.<br />

“It allows us to work together in a<br />

sustainable and mutually beneficial<br />

manner, while educating and enhancing<br />

our community and environment.”<br />

Winners of the awards will be<br />

announced in <strong>May</strong> at the IPAH<br />

conference in Guangzhou, China.<br />

Gladstone Ports Corporation<br />

28 <strong>May</strong> <strong>2019</strong><br />

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QUEENSLAND<br />

Port of Brisbane<br />

“The service will boost export opportunities from north<br />

Queensland and improve domestic trade links on Australia’s east<br />

coast,” David Sibley, general manager of business development at<br />

the Port of Townsville, told <strong>DCN</strong>.<br />

The port also completed a $40m Berth 4 upgrade in 2018. But<br />

its main focus is its massive $1.6bn port expansion project. With<br />

money now secured for the first stage, the port is to proceed to<br />

widen its channel to allow ships of up to 300 metres in length to<br />

safely access the Townville shipping channel.<br />

“Currently, due to the narrowness of the channel, the length<br />

limit is 238 metres,” Mr Sibley said.<br />

As northern Australia’s largest container and automotive port,<br />

Townsville facilitates trade in a large variety of containerised<br />

commodities, including refined minerals and general cargo,<br />

together accounting for around 10% of total trade (most minerals<br />

are transported in bulk).<br />

The container trade services the mining, agricultural and<br />

industrial sectors of north and central QLD.<br />

“A historical record for containerised cargo was achieved in<br />

2017/18, largely driven by renewable energy projects,” Mr Sibley<br />

said. “Renewable energy projects have slowed during 2018/19.”<br />

Year to date total trade throughput is more than 6m tonnes,<br />

tracking slightly above the same time last financial year.<br />

“This year to date container trade is just under 45,000 TEU and<br />

is forecast to increase significantly over the next five years driven<br />

by an upswing in the mining sector, including development of<br />

the Galilee basin, and an emerging battery materials processing<br />

industry,” Mr Sibley said.<br />

Last financial year was a record year for motor vehicle imports<br />

but this has slowed.<br />

“Motor vehicle imports have been impacted by a nation-wide<br />

decrease in new car sales, driven by weakened consumption<br />

growth,” Mr Sibley said.<br />

Overall trade throughput declined in 2017/18 primarily due to<br />

the closure of the Yabulu nickel refinery in 2016.<br />

“Queensland Nickel had significant operations at the Port of<br />

Townsville, importing almost three million tonnes of nickel ore per<br />

annum in prior years,” Mr Sibley said.<br />

The mining and resources sector accounts for more than 30% of<br />

the port’s trade.<br />

“The mining downturn has presented challenges for the North<br />

Queensland economy including Port of Townsville,” Mr Sibley said.<br />

“Looking forward, we forecast significant growth in trade<br />

throughput,” he said, adding this would be driven by regional<br />

population growth and an upswing in the mining sector and new<br />

project development.<br />

Mr Sibley said growth also would be driven by the widening of<br />

the port’s shipping channel and critical infrastructure upgrades<br />

including a new container terminal and ship-to-shore crane.<br />

LONG-TERM VISION<br />

The PEP is a 30-year project that will enable the Port of Townsville<br />

to respond to future capacity requirements. The PEP is to occur in<br />

stages, the first of which is the Channel Upgrade Project.<br />

Over the next 30 years, the PEP will see an expansion of<br />

port infrastructure that will include up to six extra berths and<br />

associated infrastructure. Stage one of the PEP is progressing<br />

with joint funding from the federal and QLD governments, each<br />

OFFERING VITAL CONNECTIONS TO QUEENSLAND MAINLAND<br />

One operator offers a unique service<br />

that connects remote island communities<br />

to mainland Australia. Sea Swift began<br />

services to the Northern Peninsula<br />

Area, Thursday Island, and outer Torres<br />

Strait Islands in 1987 with a single 500T<br />

landing craft tank providing a fortnightly<br />

schedule service.<br />

In 1990, Sea Swift won the contract to<br />

supply a weekly service to all governmentoperated<br />

supermarkets and stores.<br />

“This was the catalyst to increase the<br />

fleet to two linehaul vessels departing<br />

Cairns, and a fleet LCT providing a twice<br />

a week service to the main ports of<br />

Seisia, Thursday Island, and Horn<br />

Island, and a weekly service to all 15<br />

communities in the Torres Strait,” Sea<br />

Swift general manager Queensland<br />

operations, Peter Domenighini, said.<br />

“Over the years, services have<br />

expanded with weekly all-year services to<br />

Lockhart River and Aurukun, and a twice<br />

a week service to Weipa.<br />

“We also deliver all the remote power<br />

station fuel to the NPA communities<br />

of Bamaga and Aurukun, Torres Strait<br />

Islands, Mornington Island in the Gulf of<br />

Carpentaria, and Palm Island.”<br />

But what do Sea Swift’s vessels<br />

actually carry? The answer is pretty much<br />

anything. Its diverse fleet of 27 specialised<br />

vessels allows it to carry and deliver a<br />

wide range of general and refrigerated<br />

cargoes, as well as trucks, earth-moving<br />

vehicles, boats, building and construction<br />

materials, and much more.<br />

“Our most common types of freight<br />

are essential household items, food, and<br />

medical supplies,” Mr Domenighini said.<br />

“We also supply housing and<br />

infrastructure construction material, as<br />

well as fuel for Ergon Energy’s remote<br />

power stations, Horn Island Airport, and<br />

remote self-service fuel stations.<br />

“The freight and cargo services<br />

offered by Sea Swift are the lifeblood of<br />

many communities in the region,” Mr<br />

Domenighini said, adding many northern<br />

Australia communities are very remote<br />

and access is often restricted, especially<br />

during the northern wet season.<br />

Sea Swift’s fleet includes seven general<br />

cargo vessels; MV Trinity Bay, which also<br />

has the capacity to carry 35 passengers;<br />

three tug and barge sets; two<br />

motherships providing fuel and stores to<br />

Port of Brisbane<br />

30 <strong>May</strong> <strong>2019</strong><br />

thedcn.com.au


contributing $75m. The Port of Townsville<br />

international visitor expenditure growing<br />

is to commit $43m.<br />

13% to almost $6bn during 2018.<br />

The Channel Upgrade Project<br />

“This was helped along by the hosting<br />

includes the construction of a 62ha port<br />

of the Commonwealth Games on the Gold<br />

reclamation area at the eastern end of the<br />

Coast in that year,” Mr Rodgers said.<br />

port. The area is to be built using capital<br />

The December Deloitte State Economic<br />

dredge material that will be extracted<br />

Outlook forecasts export volumes growth<br />

as part of the channel widening that is<br />

to accelerate for QLD over the forecast<br />

scheduled to start in the first half of 2020.<br />

period (out to 2022-23). This is consistent<br />

“In accordance with the project’s<br />

with the outlook from the Australian<br />

environmental conditions, none of the<br />

government Office of the Chief Economist<br />

capital dredge material from the channel<br />

which sees strong market conditions ahead<br />

widening will be deposited at sea,” Mr<br />

for coal, LNG, bauxite, copper and zinc.<br />

Sibley said.<br />

Last year’s QLD state budget outlook<br />

The construction of the rock wall<br />

predicted moderate growth in exports in<br />

that is to form a bund around the port<br />

the near term offset by increased import<br />

reclamation area is scheduled to start in<br />

volumes off the back of growing domestic<br />

the second half of <strong>2019</strong>.<br />

economic activity. The government<br />

Roy Cummins, CEO, Port of Brisbane<br />

predicted a patchy outlook for rural<br />

OUTLOOK FOR QUEENSLAND<br />

industries with the continuing impact of<br />

Queensland head of industry body Ai Group,<br />

drought (and now floods) in many areas.<br />

Shane Rodgers, told <strong>DCN</strong> the state’s economy is likely to be in a Australian Bureau of Statistics figures show the value of QLD<br />

steady growth phase during the next three years as the resources exports rose $12.4bn to $83.1bn in the year to February <strong>2019</strong>. The<br />

sector continues a positive trajectory and some rural industries largest increase was in coal exports. Exports of crops fell 39.2%<br />

enjoy solid global demand.<br />

annually but overall rural exports grew slightly due to strong<br />

“There is also strong interstate migration to the state and a large meat exports.<br />

emerging pipeline of infrastructure projects, including Cross River “Trade with China is continuing to grow strongly, despite the<br />

Rail and the Queens Wharf development that will transform the moderation in that country’s economic growth. There was very<br />

Brisbane CBD,” Mr Rodgers said.<br />

strong percentage increases in exports to Vietnam, Malaysia and<br />

“There are early signs of this infrastructure pipeline now feeding Indonesia over the year,” Mr Rodgers said.<br />

into construction activity for the next few years.”<br />

“While the prospects for QLD’s international trade remain<br />

Exports from QLD have recorded strong growth since late 2016, positive, this will depend on maintaining an industrial relations<br />

following a series of flat years. Much of the growth has come from system that guarantees supply reliability and Australia having<br />

the ramp-up of the major gas export projects but the positive trend a consistent approach to project development to encourage<br />

is also being underwritten by strong resources demand (and prices) investment in export industries,” he said.<br />

and signs of life in meat exports.<br />

“Projects like the proposed Adani Mine in north QLD are being<br />

Tourism numbers to QLD continue to show solid growth with watched with great interest by international investors.”<br />

Sea Swift<br />

the fishing fleet on the north-east coast<br />

of Australia; and two vessels available for<br />

ad-hoc charters.<br />

“Sea Swift is a specialist in providing<br />

logistical support for major infrastructure<br />

projects, operating between land and sea,<br />

over long distances, on rugged coasts,<br />

on tidal flats with limited access and in<br />

the face of unpredictable weather,” Mr<br />

Domenighini said.<br />

Sea Swift is able to move all cargo,<br />

including large-scale projects that need<br />

to ship large mobile plant, heavy mobile<br />

equipment to mine sites, bulk fuels,<br />

construction materials, accommodation<br />

modules for the construction of worker<br />

camps worksite buildings, terrain cranes,<br />

and prime movers.<br />

Sea Swift carries a wide variety of cargo<br />

between ports in far north Queensland and Cape York<br />

thedcn.com.au <strong>May</strong> <strong>2019</strong> 31


QUEENSLAND<br />

WISTA launches network in far north QLD<br />

Women in the tropical north are coming together to support their endeavours in the<br />

maritime industry under the umbrella of national association WISTA<br />

The Women’s International Shipping & Trading Association is<br />

an international networking organisation whose mission is to<br />

attract and support women, at the management level, in the<br />

maritime, trading and logistics sectors.<br />

The Australia arm of WISTA, which until now has focused<br />

mainly on the capital cities, has extended its reach into far north<br />

Queensland. At the beginning of April the organisation held two<br />

key events in the region – in Townsville and Cairns - to bring<br />

together women interested in networking and becoming part of<br />

the organisation.<br />

“The main purpose of these events is to include our regional<br />

areas of Australia into the WISTA network and provide a scope that<br />

is beyond just the metropolitan areas because shipping is national,”<br />

WISTA Australia president Alison Cusack said.<br />

“WISTA also now has the capacity to expand regionally,” she<br />

said, adding increased membership and sponsorship had buoyed<br />

the non-profit organisation.<br />

The aim of the events was to empower women. It does this<br />

by providing access to regional networking, business and skill<br />

building opportunities, corporate visibility, and also facilitating<br />

relationships within the industry.<br />

Guest speakers at the Townsville event include Michelle Taylor,<br />

vice president of WISTA Australia and partner at Colin, Biggers &<br />

Paisley; Lilian Auvaa, managing director of HERLI Group; Maria<br />

James, trade and business development executive at the Port of<br />

Townsville; and Peter Hinsch, managing director of Harbourside<br />

Coldstores.<br />

DRIVING FORCES<br />

“I grew up in Townsville and began my shipping career in Cairns,<br />

so I have a personal connection to north Queensland,” Ms Taylor<br />

told Daily Cargo News.<br />

“The collegiality and energy of the participants at both events<br />

was inspiring,” she said.<br />

Ms Taylor said members of the shipping and trade industries in<br />

north QLD, and particularly women, are incredibly resilient, with<br />

an outstanding ability to get things done.<br />

Lilian Auvaa, HERLI Group (left) with delegates at the WISTA event<br />

“For all these reasons, WISTA is proud to encourage and support<br />

the development of career opportunities in shipping and the export<br />

business in north QLD,” she said.<br />

WISTA recently achieved IMO consultancy status and <strong>2019</strong><br />

is the IMO year of “Empowering women in the maritime<br />

community”.<br />

“I can’t think of a more deserving community to support, than<br />

women in shipping in north QLD,” Ms Taylor said.<br />

The driving force behind WISTA’s expansion in the region<br />

was local business woman Lilian Auvaa. She has worked in the<br />

shipping industry for 16 years and in 2018 began her own freight<br />

consultancy business in Cairns, which specialises in the Pacific<br />

Islands trade.<br />

“Lilian recently became aware of the role that WISTA plays in<br />

Australia,” Ms Taylor said.<br />

“The shipping and trade industries are pivotal to the future of<br />

the north QLD region, and as a result, Lilian reached out to WISTA<br />

for support to facilitate networking, mentoring and business<br />

development opportunities.”<br />

PROMOTING DIALOGUE<br />

The theme for the Townsville panel discussion was “opportunities<br />

for Townsville as an export hub”. One of the guest speakers was<br />

Maria James, trade and business development executive for the Port<br />

of Townsville. She spoke about her experience in shipping and the<br />

benefits of providing a supportive working environment for women<br />

in a regional business community.<br />

Port of Townsville was the winner of the Gender Diversity Award<br />

at the 2018 <strong>DCN</strong> Australian Shipping & Maritime Industry Awards.<br />

The theme for the Cairns panel discussion was “promoting<br />

agricultural exports through Cairns and Townsville”. One of<br />

the guest speakers, Barbara Ford, managing director, Airfreight<br />

Handling Services was the 2016 Cairns Business Woman of<br />

the Year. She spoke of her incredible journey to overcome<br />

discrimination in the industry to succeed as a business owner<br />

and manager.<br />

MOVING FORWARD<br />

Ms Taylor says WISTA plans to facilitate further events in far<br />

north QLD.<br />

“We’ve received support from both the Maritime Museum of<br />

Townsville and the Cairns Regional Council to host any future<br />

events in their venues and conference rooms,” she said.<br />

WISTA proposes to continue its support for women in the far<br />

north QLD shipping and trade industries through a number of<br />

initiatives including: funding for regional representatives to attend<br />

WISTA events in capital cities of Australia; ensuring WISTA Board<br />

Members regularly attend Far North QLD events; and a mentoring<br />

program which is due to be launched at the <strong>2019</strong> AGM Conference<br />

for WISTA Australia, in Sydney on 21 August <strong>2019</strong>.<br />

WISTA<br />

32 <strong>May</strong> <strong>2019</strong><br />

thedcn.com.au


SERVING AUSTRALIAN PORTS SINCE 1984<br />

ex Europe,<br />

Far East Asia<br />

and USA<br />

•<br />

Breakbulk &<br />

dry bulk cargo,<br />

steel, machinery,<br />

projects, super yachts,<br />

imo cargoes,<br />

paper &<br />

forest products<br />

•<br />

Over 70 modern geared<br />

(up to 360mt)<br />

multi-purpose,<br />

box shaped vessels<br />

Australian agents for Spliethoff Amsterdam<br />

Sydney: +61 2 9906 6372<br />

Brisbane: +61 7 3839 4235<br />

Melbourne: +61 3 9866 6955<br />

Fremantle: +61 8 9335 3800<br />

Adelaide: +61 8 8447 7855


BREAKBULK & PROJECT CARGO<br />

AAL Kembla on Sydney Harbour<br />

34 <strong>May</strong> <strong>2019</strong><br />

thedcn.com.au


STEADY<br />

as she goes<br />

After busy year just gone, the trend appears to be continuing with<br />

an uptick in demand for project cargo, writes Paula Wallace<br />

AAL<br />

International pundits say increased demand and better rates<br />

are on the cards over the next year for multi-purpose vessels<br />

- servicing breakbulk and project cargo - aided by a shrinking<br />

legacy fleet and reduced pressure from other ship types.<br />

The big factor influencing the market globally is oil prices but<br />

aside from that, other market drivers that are looking favourable<br />

include activity in oil drilling and refining, construction of wind<br />

energy, steel production, mining and industrial infrastructure.<br />

“The Australian economy and fortunes of many of our local<br />

customers are benefiting from a global recovery that began in 2017,<br />

increased spending in Asia, reviving commodity prices, strong steel<br />

exports to the US and low interest rates around the world,” Frank<br />

Mueller, general manager Australia/Oceania at AAL, told Daily<br />

Cargo News.<br />

Late last year, on the back of strong growth (16% in 2017/1018)<br />

for Western Australia’s $109bn mineral and petroleum industry,<br />

AAL boosted its scheduled north and south-east Asia to west<br />

coast Australia liner service (AUWC) to a monthly service<br />

with the addition of a second MPV vessel. The company added<br />

an S-Class vessel to expand the service and provide additional<br />

capacity to support increased volumes of mining, oil and gas<br />

and infrastructure cargoes. AAL’s AUWC service has served the<br />

breakbulk and project heavy-lift shipping community in the<br />

region since 2006 and is the only MPV liner service between<br />

north Asia and the Australian west coast offering regular sailings<br />

from Shanghai, Pusan and Kaohsiung to Fremantle as well as Port<br />

Hedland/Dampier on inducement. The service currently employs<br />

tonnage from AAL’s owned S-Class MPV fleet (19,000 dwt and<br />

featuring a combined maximum lifting capacity of 700 tonnes).<br />

“At the moment we’re filling the vessels… we don’t have the full<br />

frequency the way we wanted but that was to be expected,” Mr<br />

Mueller said. “We currently have the two vessels that are servicing<br />

a lot of ad hoc and project cargo.”<br />

AAL also operates an MPV liner service from Asia to Australia’s<br />

east coast, in conjunction with Swire Shipping.<br />

“On the east coast, our vessels are relatively full and we are<br />

offering customers improved transit times on individual voyages to<br />

targeted ports,” said Mr Mueller.<br />

“We wish rates could be higher and more sustainable, but that is<br />

indicative of the current market challenges we face.”<br />

Mr Mueller indicated solid business during the past year.<br />

“Over the past year, on the liner side, volumes were quite steady…<br />

there was a steady flow and our vessels were relatively full,” he said.<br />

In Australia we’ll see an increase in<br />

dedicated project cargo going forward,<br />

maybe even in the second half of this<br />

year and beyond.<br />

Frank Mueller, AAL<br />

“Project and heavy lift cargo has been rather lacking in Australia<br />

in recent years. Nevertheless, going forward there are more project<br />

opportunities on the horizon, including BHP’s significant South<br />

Flank project.<br />

“In Australia we’ll see an increase in dedicated project cargo going<br />

forward, maybe even in the second half of this year and beyond.”<br />

Located near BHP’s Mining Area C operations, South Flank is to<br />

replace production from the 80m tonne per annum Yandi mine.<br />

thedcn.com.au <strong>May</strong> <strong>2019</strong> 35


BREAKBULK & PROJECT CARGO<br />

Port of Newcastle supports the mining sector via the import<br />

of mining-related machinery and equipment<br />

Of course you need to safeguard<br />

yourself as a carrier and it’s a bit hard<br />

to predict what will happen in 2020 with<br />

fuel prices.<br />

Frank Mueller, AAL<br />

Large parcels of<br />

portside land at the<br />

Port of Newcastle<br />

provide flexibility to<br />

store and stage cargo<br />

Expanding the existing infrastructure at Mining Area C, the project<br />

involves construction of an 80m-tonnes-per-annum crushing and<br />

screening plant, an overland conveyor system, stockyard and train<br />

loading facilities, procurement of new mining fleet and substantial<br />

mine development and pre-strip work.<br />

“If people talk about projects in mining it’s South Flank,” Mr<br />

Mueller said. “That’s the next big project coming up and that’s an<br />

indicator that things are going the right way.”<br />

Mr Mueller noted “a bit of talk about lithium mines… alumina<br />

and coal as well”, adding that the march towards renewable energy<br />

would continue, possibly spurring demand for minerals and transportation<br />

of components such as turbine blades and solar transformers.<br />

A key focus for AAL this year is continuing providing a premium<br />

service to breakbulk and project cargo customers. Mr Mueller<br />

doesn’t see any major threats on the horizon and says the company<br />

is well prepared for the introduction of the IMO sulphur cap<br />

regulations in 2020.<br />

“Our vessels are relatively new and can handle low sulphur<br />

requirements,” he said. “Of course you need to safeguard yourself<br />

as a carrier and it’s a bit hard to predict what will happen in 2020<br />

with fuel prices.<br />

“I think we will see a spike in costs but hopefully that will come<br />

down… when they introduced unleaded fuel [for cars], originally it<br />

was more expensive but then it dropped,” he said.<br />

“There’s just this risk that needs to be shared and some of the<br />

potential costs may need to be passed on.”<br />

PORT’S PERSPECTIVE<br />

The Port of Newcastle specialises in handling large, project cargoes<br />

including generators, pre-fabricated structures, wind turbines,<br />

tunnel boring machines and heavy equipment. Heavy lift cargo<br />

operations can occur at three different locations within the<br />

port’s precinct.<br />

“The Port of Newcastle handled about one million revenue<br />

tonnes of breakbulk in 2018,” a spokesperson said, adding that this<br />

was consistent with volumes in recent years.<br />

The port wants to increase the capacity, flexibility and options<br />

for cargo owners and will, this year, set out how it plans to do this<br />

with a comprehensive Newcastle General Cargo Terminal concept.<br />

According to the port, what attracts this type of cargo to<br />

Newcastle is the fact that it is the only port in eastern Australia<br />

with a berthside rail line. Another advantage is the port’s extensive<br />

storage space (120,000 square metres of hardstand) and flexible<br />

licensing, which can accommodate any delays in the customers’<br />

project timelines.<br />

“Limited storage and competing cargo can result in cargo owners<br />

having to move their cargo out of port storage before they are<br />

ready to take it to the project site. This results in very costly extra<br />

handling steps, and the requirement to find a temporary storage<br />

space,” the spokesperson said.<br />

An example of this is the wind farm components stored at the<br />

port’s site in <strong>May</strong>field.<br />

“Half of the components (three shipments) were already on the<br />

Port of Newcastle<br />

36 <strong>May</strong> <strong>2019</strong><br />

thedcn.com.au


BREAKBULK & PROJECT CARGO<br />

Tunnel boring machine “Bella” being unloaded by Patrick at East Swanson dock<br />

water when the project hit a substantial delay. At other ports, cargo<br />

owners would have needed to arrange storage away from the port.<br />

This comes at a significant cost,” the spokesperson said.<br />

“Cargo owners would also have the extra administration for<br />

route surveys and oversize load permits to manage the additional<br />

truck movements associated with third party storage.”<br />

The spokesperson said Port of Newcastle had instead been able<br />

to accommodate this cargo for the extended duration with no extra<br />

movements of the wind turbine components required.<br />

“Once the project is ready to receive the parts, the cargo can be<br />

moved directly to site,” the spokesperson said.<br />

Port of Newcastle has been able to cater for a variety of large<br />

and oversize project cargoes, including some of the longest wind<br />

turbines imported into Australia.<br />

“Gaining authorisation to move oversized cargo through Port of<br />

Newcastle and directly out into regional NSW is simpler and does<br />

not involve a trip through Sydney,” the spokesperson said.<br />

BEYOND CONTAINERS<br />

French shipping giant CMA CGM is perhaps best known for its role<br />

in the global container sector. But the company (a parent of local<br />

entity ANL) also does a busy breakbulk trade. In 2018, for example,<br />

CMA CGM experienced double digit growth year-on-year in that<br />

sector. The company handled 900 breakbulk projects as well as<br />

250,000 TEU equivalent of Out of Gauge.<br />

“Our heaviest piece to date was 457 tonnes, which was also<br />

the heaviest piece to be carried by a container carrier,” a company<br />

spokesperson told <strong>DCN</strong>.<br />

“Under deck stowage is our default stowage method; only in rare<br />

cases are cargoes loaded on deck, and in such instances, it is always<br />

with the express agreement of the customer.”<br />

The company sees growth opportunities in transporting<br />

breakbulk and project cargo in the Oceania market.<br />

“Last year, growth both to and from Oceania exceeded our<br />

expectations and we are doing everything so that our customers<br />

continue to trust us,” the spokesperson said.<br />

CMA CGM handles a wide range of industrial cargoes including<br />

mining equipment, transformers, oil and gas equipment, cranes<br />

and building machinery.<br />

“BELLA”NO MATCH FOR<br />

PATRICK TERMINALS<br />

Patrick Terminals recently unloaded a massive tunnel<br />

boring machine to help in the construction of the West Gate<br />

Tunnel in Melbourne.<br />

The tunnel borer had been shipped to Melbourne on<br />

board the vessel Caribbean Harmony.<br />

Patrick unloaded the largest piece at East Swanson dock,<br />

that being the head of the boring machine which weighed<br />

295 tonnes and required a 30-tonne lifting beam. In total the<br />

machine consisted of more than 100 components.<br />

Two cranes on the vessel were used in tandem to lift the<br />

load onto a specialised 16-wheel heavy lift trailer. Part of<br />

the challenge was ensuring the balance of the ship as the<br />

weight moved and was released on the wharf by two cranes<br />

working simultaneously.<br />

Worth an estimated seven million Euro, the machine was<br />

built by Herrenknecht AG, global specialists in mechanised<br />

tunnelling systems. When fully operational, the tunnel<br />

boring machine named Bella, is to be 90 metres long,<br />

15.6 metres high and weigh 4000 tonnes - making it one<br />

of the largest in the southern hemisphere.<br />

Specialised training for the West Gate Tunnel Project<br />

has now started for more than 30 tunnel workers with a<br />

hyperbaric chamber installed onsite so workers learn about<br />

operating in pressurised conditions.<br />

The tunnel boring on the longest of the West Gate Tunnel<br />

twin tunnels will start by the middle of the year.<br />

Patrick Terminals<br />

38 <strong>May</strong> <strong>2019</strong><br />

thedcn.com.au


PROJECT CARGO<br />

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www.portofnewcastle.com.au<br />

portofnewcastle


BREAKBULK & PROJECT CARGO<br />

AAL Dalian - Discharging a<br />

transformer in Geelong from Shanghai<br />

AAL Kembla - Discharging tunnel boring<br />

machine “Kathleen” in Sydney<br />

“MEGA”CARGO HIGHLIGHTS OF <strong>2019</strong><br />

One of the highlights this year<br />

has been AAL’s delivery of Victoria’s<br />

– and possibly Australia’s – largest<br />

transformers to the Stockyard Hill<br />

Windfarm Connection.<br />

This was done on behalf of Australiabased<br />

global logistics solutions provider,<br />

Cargo Line International. The modern<br />

Toshiba-made unit is expected to help<br />

generate enough clean energy to power<br />

390,000 average homes in the south<br />

east of the country a year with about<br />

two million tonnes of CO2 savings.<br />

The Toshiba manufactured ‘megatransformer’<br />

measured about 14 metres<br />

x 5 metres and weighed more than 305<br />

tonnes. It was shipped from Shanghai to<br />

Geelong aboard one of AAL’s 31,000DWT<br />

A-Class heavy-lift MPVs, the AAL Dalian.<br />

The unit was safely stowed by the<br />

crew of the Dalian into the 38 metre x<br />

12.8 metre cargo hold, harnessing the<br />

power of heavy-lift (700 tonne max)<br />

port-mounted cranes for loading and<br />

discharge operations.<br />

Goldwind Australia operates the<br />

Stockyard Hill Windfarm Connection<br />

with support from Mondo, the<br />

commercial energy division of AusNet<br />

Services which owns and represents<br />

the Victoria electricity network. Wind<br />

farm construction began in <strong>May</strong> 2018<br />

and consists of 149 wind turbines that,<br />

as well as 530 megawatts of renewable<br />

energy, is to provide environmental,<br />

community and economic benefits to<br />

the whole region.<br />

The transformer is to be installed<br />

at the wind farm’s “Haunted Gully”<br />

terminal station at Lismore about 170<br />

kilometres west of Melbourne.<br />

“As Australia’s economy continues to<br />

perform well, with a supportive global<br />

environment and strong domestic<br />

demand set to maintain this growth<br />

for <strong>2019</strong>, AAL is delighted to be part of<br />

a project that will have wide-reaching<br />

economic and community benefits,”<br />

AAL commercial director Christophe<br />

Grammare said.<br />

“We’re also proud to contribute to<br />

such an important green power project<br />

and reinforce our reputation as carrier<br />

of choice for a growing number of<br />

Australia’s largest renewable energy<br />

projects.”<br />

Cargo Line International Project<br />

manager Bronwen Grabe said being<br />

entrusted by Toshiba International to<br />

handle the end to end freight forwarding<br />

scope of the project was “a privilege”.<br />

“This project was years in the making<br />

and was a remarkable success which can<br />

be attributable to the professionalism<br />

and dedication of the project team<br />

at Cargo Line International achieving<br />

excellence,” Ms Grabe said.<br />

“As an Australian owned company,<br />

we are proud to assist in a project<br />

that directly benefits and impacts the<br />

community and the environment.”<br />

AAL has also made several notable<br />

deliveries to Australia this year. In<br />

February, it successfully completed a<br />

major shipment of two mega tunnel<br />

boring machines from Nansha in<br />

South China to Sydney and Melbourne<br />

respectively. They are to help progress<br />

important new multi-billion-dollar metro<br />

railway projects taking place separately<br />

in the two state capitals. The two units<br />

and their components totalled more<br />

than 2000 tonnes in weight and were<br />

shipped aboard the 31,000 dwt heavylift<br />

MPV, the AAL Kembla.<br />

The two TBMs were manufactured<br />

by Herrenknecht AG and this is the<br />

sixth shipment of such units that AAL<br />

has been commissioned to operate<br />

in the past eight months on the<br />

manufacturer’s behalf, via its selected<br />

logistics partner Geodis Hamburg.<br />

The larger of the two units on this<br />

shipment (weighing almost 1000 tonnes)<br />

is part of a 130-metre boring machine<br />

named TBM “Kathleen”. It is the last of<br />

five mega borers for the Sydney Metro<br />

City & Southwest Project and will help<br />

to build twin 15.5km railway tunnels<br />

deep under Sydney Harbour - eventually<br />

enabling underground transport of<br />

passengers in state-of-the-art driverless<br />

trains.<br />

“Kathleen” was transported by barge<br />

from White Bay to Barangaroo, where<br />

it is to be assembled and plunged deep<br />

underground later this year for the<br />

section of the Sydney metro rail tunnel<br />

project that extends from Barangaroo to<br />

Blues Point.<br />

Transport and infrastructure minister<br />

Andrew Constance was effusive about<br />

the concept.<br />

“Not since Bradfield delivered the<br />

Sydney Harbour Bridge almost a century<br />

ago has there been a vision for public<br />

transportation on the scale of Sydney<br />

Metro,” he said.<br />

The TBM – named after Kathleen<br />

Butler who was a technical advisor in the<br />

construction of Sydney Harbour Bridge<br />

and the first Australian woman to have a<br />

senior role in an infrastructure project of<br />

that scale – is to tunnel through clay, silt<br />

and sediment to bore a rail route under<br />

Sydney Harbour.<br />

“TBM Kathleen is shaping Sydney’s<br />

future as she gets ready to build the<br />

first railways tunnels under Sydney<br />

Harbour—linking metro rail from the<br />

city’s northwest, through the CBD and<br />

on to the south west,” Mr Constance said.<br />

“Each of our six shipments of these<br />

enormous TBM units over the past eight<br />

months has provided unique challenges,<br />

which we addressed and overcame<br />

every time,” Ms Grabe said.<br />

“On this occasion we had tight<br />

delivery deadlines. A four-day window<br />

to discharge the first unit in White Bay,<br />

Sydney – which we did directly to barge<br />

– and then to deliver the second unit to<br />

Melbourne by 28 February, which we<br />

also accomplished.”<br />

AAL<br />

40 <strong>May</strong> <strong>2019</strong><br />

thedcn.com.au


“We also handle a substantial amount of boats and yachts of all<br />

shapes and sizes, whether as breakbulk or containerised cargo,” the<br />

spokesperson said.<br />

“In Oceania, our biggest market is made up of boats and yachts.<br />

CMA CGM is indeed actively involved in shipping Australian-made<br />

boats, mainly to the US market.<br />

“We also ship worldwide many of the renowned New Zealand<br />

masts for racing yachts.”<br />

One of the high points in the global racing yacht calendar is the<br />

Sydney to Hobart race, and CMA CGM has been involved in the<br />

transportation of a number of the bigger racing yachts.<br />

“We also brought some boats which dropped out of the Vendée<br />

Globe race, from New Zealand and Tahiti back to France,” the<br />

spokesperson said.<br />

“We are also seeing an increase in mining equipment being<br />

shipped to this region.”<br />

CMA CGM said all “the pointers are that the project cargo<br />

market is relatively stable, albeit with differences across sectors”.<br />

The company says the main challenge for the industry is the<br />

upcoming Low Sulphur IMO 2020 Regulation.<br />

“In line with its commitments, the group will comply with the<br />

regulation issued by the IMO as from 1 January 2020. Liquefied<br />

natural gas, which is a real technological breakthrough, will be part<br />

of the group’s strategy in this regard,” the spokesperson said.<br />

In November 2017, CMA CGM announced its decision to equip<br />

nine future ships of 22,000 TEU with engines using LNG, which<br />

are due to be delivered from 2020.<br />

“CMA CGM thus became the first shipping company in<br />

the world to propel ultra-large containerships with LNG,” the<br />

spokesperson said.<br />

“In March <strong>2019</strong>, the group ordered five further 15,000 TEU<br />

vessels powered by LNG to be delivered from 2021.”<br />

The company also has been involved in an environmental<br />

initiative with IKEA and the GoodShipping program to test<br />

sustainable marine bio-fuel oil. The 5095 TEU CMA CGM WHITE<br />

SHARK was successfully refuelled with sustainable marine bio-fuel<br />

oil on 23 March, <strong>2019</strong> at the Port of Rotterdam and the vessel was<br />

trialling the fuel on its transatlantic crossing throughout April.<br />

“This world premiere partnership with IKEA Transport &<br />

Logistics Services and the GoodShipping program represents a<br />

major step towards the decarbonisation of ocean freight,” the<br />

spokesperson said.<br />

The second-generation bio-fuel oil is completely derived from<br />

forest residues and waste oil products. It is expected to deliver<br />

80-90% well-to-propeller carbon dioxide reduction versus fossil<br />

equivalents, and virtually eliminate sulphur oxide emissions – all<br />

without any requirement for engine modifications.<br />

“Results from the trial will be communicated shortly. They will<br />

give the maritime sector a vital demonstration into the scalability,<br />

sustainability and technical compliance of sustainable marine biofuel<br />

oil,” the spokesperson said.<br />

“This will benefit all industry stakeholders in their<br />

environmental strategies, in line with the impending IMO<br />

decarbonisation pathway.”<br />

CMA CGM<br />

Loading of the Scallywag onboard the CMA CGM-operated Seatrade Orange in Sydney, January <strong>2019</strong><br />

thedcn.com.au <strong>May</strong> <strong>2019</strong> 41


CONTAINER SHIPPING & LOGISTICS<br />

Rise of the<br />

intermodals<br />

With more and more containers<br />

being shipped in and about<br />

Australia, intermodal facilities<br />

around the country will be crucial<br />

in ensuring a smooth supply chain<br />

writes <strong>DCN</strong> editor David Sexton<br />

Rail is playing an increased role<br />

in moving containers from Port Botany to Enfield<br />

Australia has a surging freight task. A 2016 report by<br />

Infrastructure Australia found Australia’s national land<br />

freight task is expected to grow by around 75% between 2011<br />

and 2031.<br />

Moreover, during the decade to 2016, total international<br />

trade through Australian ports had more than doubled from<br />

680.6m tonnes in 2004–05 to 1.45bn tonnes in 2014–15 (again<br />

according to Infrastructure Australia).<br />

This increasing task provides a massive workload not only for the<br />

shipping companies bringing in containers from across the world,<br />

but also the stevedores and logistics companies that handle and<br />

distribute containers across the country.<br />

As more containers arrive at the nation’s ports, efforts are<br />

underway from both the private and public sectors to get more<br />

containers onto rail, helping decongest port precincts and provide<br />

a smoother overall supply chain. We take a look at some interesting<br />

developments in this sphere.<br />

42 <strong>May</strong> <strong>2019</strong><br />

thedcn.com.au


Andrew Linturn and ironmedia.com.au<br />

FACILITATING TRADE GROWTH<br />

One company playing an important role in the movement of goods<br />

around the nation is LINX Cargo Care Group (LINX CCG). Spun<br />

off from the partitioning of the old Asciano company, LINX is<br />

focused on developing intermodals on both sides of the continent.<br />

It’s a theme taken up by Carlo Cutinelli, LINX CCG executive<br />

general manager customer and business development.<br />

Clearly passionate about his subject, Mr Cutinelli starts by<br />

explaining progress with the Enfield Terminal in Sydney since<br />

taking it over from Aurizon in April last year.<br />

“When we took [Enfield] over, it wasn’t doing too much. But<br />

we got it up to doing anywhere between 14 to 18 services per week<br />

(from a starting point of four) into the port from Enfield and that<br />

is straight into all three stevedores,” he says.<br />

“We’re also now operating an empty park on site and have an<br />

arrangement with ACFS who are an empty park operator and a<br />

client of ours.”<br />

The takeover by LINX CCG meant entering into a long-term<br />

arrangement with NSW Ports (the owner of Enfield) to provide the<br />

port with rail volumes as opposed to continuing to grow business<br />

via road.<br />

Mr Cutinelli says they engaged with some wharf cartage<br />

providers that are using the Enfield site to service imports and<br />

exports on rail.<br />

“It has been a quick growth story for us. We are in deep<br />

discussions with some country operators with some export trains<br />

that will eventually call through there in the future and utilising<br />

our empty park services as well as not having to be getting caught<br />

up in congestion near Port Botany,” he says.<br />

“We really see it as a decongestant from a Port Botany<br />

perspective, but also growing that rail market share.”<br />

Efforts to use rail as a decongestant received praise from a<br />

competitor, Qube, whose managing director Maurice James noted<br />

how this approach was benefitting NSW.<br />

thedcn.com.au <strong>May</strong> <strong>2019</strong> 43


CONTAINER SHIPPING & LOGISTICS<br />

An aerial view of the LINX CC intermodal facility at Enfield<br />

FACT BOX<br />

“What we have seen in Australia for the last five to 10 years is<br />

one government with a focus on rail and that has been the New<br />

South Wales government,” Mr James told an Australian Logistics<br />

Council gathering in Melbourne earlier in the year.<br />

“What we’ve seen in New South Wales is a number of initiatives<br />

to improve modal share in our ports driving the infrastructure and<br />

encouragement of infrastructure in intermodals in Sydney.”<br />

This prompted discussion about how Victoria could increase its<br />

rail freight share and Mr Cutinelli agreed “it was time for some<br />

action” and that LINX was “actively engaged with a number of<br />

parties including the [Victorian] government to see where that next<br />

intermodal terminal for us is”.<br />

But returning to the topic of Enfield, Mr Cutinelli says taking<br />

over the lease reflected the needs of customers.<br />

“It is all about going where our customers go and it is about<br />

partnering with our customers,” he said.<br />

ENFIELD INTERMODAL TERMINAL<br />

•<br />

• The terminal is in Sydney’s west, about 18km from<br />

Port Botany<br />

• The terminal is a 15.1ha lease from NSW Ports, with<br />

terminal capacity of 300,000 TEU annually<br />

•<br />

LINX Cargo Care Group took over the lease from Aurizon in<br />

April 2018<br />

The terminal has a dedicated freight line to Port Botany<br />

and direct access to the interstate mainline corridor<br />

“We’ve got huge growth expectations, population growth<br />

[leading to increased freight volumes]. There are huge predictions<br />

so far as container volumes in the next 10 to 15 to 20 years.<br />

“We see it as a good strategy from a growth point of view to<br />

build our rail capability.”<br />

KENWICK INTERMODAL TERMINAL<br />

Switching from the east side of the continent to the west, LINX<br />

is heavily involved with the Kenwick Intermodal Terminal in the<br />

south east of Perth.<br />

Network operator Arc Infrastructure recently announced the<br />

Kenwick Intermodal Terminal would be built alongside the newlyopened<br />

Roe Highway Logistics Park, an industrial estate developed<br />

at the centre of Perth’s major arterial road network.<br />

Arc Infrastructure chief executive Paul Larsen said the new<br />

terminal would help connect the Logistics Park with the North<br />

Quay Rail Terminal at Fremantle.<br />

“Development of the terminal will support the government’s<br />

policy of increasing containers through North Quay on rail,” Mr<br />

Larsen said.<br />

By the end of 2020, LINX is set to provide rail and terminal<br />

services between North Quay Rail Terminal and Kenwick.<br />

Capacity throughput is expected to be in the order of 200,000<br />

TEU equivalent, with the facility also having empty container<br />

park capacity.<br />

“The [WA container] market is growing well. Container<br />

numbers from Fremantle Port, both import and export volumes are<br />

growing,” Mr Cutinelli says.<br />

“I think if you look at the congestion that will be faced in the<br />

future this is part of a future proofing strategy.<br />

Andrew Linturn and ironmedia.com.au<br />

44 <strong>May</strong> <strong>2019</strong><br />

thedcn.com.au


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about how we can help you get ahead.


CONTAINER SHIPPING & LOGISTICS<br />

JOINT PROJECT HIGHLIGHTS DIGITAL EVOLUTION IN CONTAINER SHIPPING<br />

Container shipping giants A.P Moller-<br />

Maersk, Hapag-Lloyd, MSC and Ocean<br />

Network Express recently teamed-up to<br />

establish the Digital Container Shipping<br />

Association in The Netherlands.<br />

To be led by Thomas Bagge, the<br />

association is to drive standardisation,<br />

digitisation and interoperability across the<br />

industry. Following regulatory approval<br />

from the Federal Maritime Commission,<br />

the DCSA was officially launched on<br />

12 April.<br />

“For the first time in 20 years, the<br />

container shipping industry has come<br />

together with a common goal to move<br />

the industry into the digital era,” Andre<br />

Simha, chief intelligence officer of MSC<br />

and chairman of the supervisory board of<br />

DCSA said.<br />

“With the regulatory approval in place,<br />

we look forward for the association to<br />

take up work and to begin to collaborate<br />

with multiple stakeholders from the entire<br />

value chain.”<br />

It is expected the concept will help<br />

overcome some of the “biggest painpoints”<br />

in the industry and one of the first<br />

projects of the association is overcoming<br />

the lack of a common foundation for<br />

technical interfaces and data. The<br />

association is also creating an industry<br />

blueprint for processes. This work is<br />

expected to benefit the entire industry, as<br />

all standards are made available for free.<br />

The association has no intent to<br />

develop or operate a digital platform and<br />

is not working on topics of a commercial<br />

or competitive nature.<br />

“We are pleased to have with Thomas<br />

Bagge the first one of a strong leadership<br />

team in place, who is supported by<br />

all of the founding members and<br />

represents container shipping at its<br />

best,” Mr Simha said.<br />

The association’s headquarters<br />

are to be located in Amsterdam, The<br />

Netherlands.<br />

“DCSA is working for the benefit of<br />

the entire container shipping industry,<br />

hence it was important for us that the<br />

headquarters is located on neutral<br />

grounds, so no specific stakeholders or<br />

companies are favoured,” Mr Simha said.<br />

DCSA is already in discussions with<br />

other container shipping lines that have<br />

expressed an interested in joining the<br />

association.<br />

FACT BOX<br />

“From our point of view, it is about supplying our customers<br />

with what they’re telling us they want.<br />

“We’ve done a lot of enquiry about additional capacity in and<br />

out of the port on rail.”<br />

INDUSTRY PARTNERSHIPS<br />

Also looking to enhance container handling capacity are<br />

Intermodal Group and Qube Logistics who have done a deal, again<br />

in the WA market.<br />

IMG is currently the operator of North Quay Rail Terminal<br />

and manages the inland Forrestfield Intermodal Terminal, where<br />

significant volumes of containers are transported on rail to and<br />

from Fremantle.<br />

IMG chair Grant Thompson said the deal made sense.<br />

“This strategic partnership with Qube is all about bringing<br />

onboard an astute investor with strong industry expertise that will<br />

bring considerable container volumes onto rail and assist with IMG<br />

plans to expand services and terminals to meet growing demand in<br />

WA,” Mr Thompson said.<br />

“We have worked closely with our customers and key<br />

stakeholders to achieve record growth in container numbers<br />

through the NQRT over the past 12 months and having Qube on<br />

board only strengthens IMG’s capability.”<br />

KENWICK INTERMODAL TERMINAL<br />

•<br />

Direct freight line to the North Quay Rail Terminal at<br />

Fremantle<br />

• Access to the interstate mainline corridor<br />

•<br />

Aims to provide exporters and importers throughout WA<br />

with an efficient supply chain<br />

•<br />

Direct RAV 7 truck access from Roe and Tonkin Highway<br />

through to the Roe Highway Logistics Park, connecting<br />

metro and regional business areas to a port rail shuttle<br />

service and an empty container park service<br />

Qube director logistics John Digney said partnering with IMG<br />

was “the obvious choice for us in WA”.<br />

“IMG have a well established and successful business model and<br />

with Qube’s market share of container volumes and supply chain<br />

expertise, the company will grow rapidly and importantly enable<br />

the state government to better manage container freight in and<br />

out of Fremantle Port by moving more containers on rail,” Mr<br />

Digney said.<br />

“We are looking forward to being part of IMG and as with<br />

elsewhere in Australia, rail being a core part of our business model<br />

for many years to come.”<br />

With the NQRT Management Agreement currently being<br />

tendered out by Fremantle Ports, this partnership is aimed at<br />

strengthening existing plans to significantly grow rail volumes and<br />

enable improved operating efficiencies at NQRT in order to reduce<br />

costs and increase volumes between the container wharves and the<br />

rail terminal.<br />

“Furthermore, the proposed development and investment<br />

in inland intermodal terminals to attract greater volumes of<br />

containers onto rail remains a high priority,” Mr Digney said.<br />

IMG plans to work closely with customers, industry and<br />

government stakeholders to facilitate investment to drive greater<br />

volumes onto rail and through NQRT.<br />

“Providing our customers with reliable, quality service is the key<br />

to maintaining momentum with the growth of container volumes<br />

on rail,” Mr Thompson said.<br />

“IMG brings the experience of successfully operating NQRT as<br />

an open access terminal for the past 10 years,” he said.<br />

“We strongly believe continuity in operations at NQRT,<br />

improved wharf interfaces, continued support from the state<br />

government and the development of appropriate inland intermodal<br />

facilities to attract container volumes onto rail underpins the<br />

ultimate success of this strategy.”<br />

INLAND RAIL<br />

The completion of the 1700-kilometre Inland Railway, linking<br />

Brisbane and Melbourne, is expected to increase the role of<br />

Andrew Linturn and ironmedia.com.au<br />

46 <strong>May</strong> <strong>2019</strong><br />

thedcn.com.au


Containers are stacked at Enfield Terminal in Sydney<br />

intermodal terminals at Tottenham in Victoria and Acacia Ridge<br />

in Brisbane.<br />

Proponents say the track will enable the use of double-stacked,<br />

1.8km trains with a 21-tonne axle load at a maximum speed of<br />

115km per hour, allowing for the transit of greater freight volumes.<br />

While an ideal scenario might allow for a train to move<br />

smoothly from Port of Brisbane to Port of Melbourne (or vice<br />

versa), this still may be some way off.<br />

This means containers would be railed to the intermodals and<br />

then moved to port by other means.<br />

According to Queensland Rail, goods for the Brisbane<br />

metropolitan market at Acacia Ridge are trans-shipped to trucks,<br />

while others are shifted to narrow gauge trains for transport on its<br />

network throughout Queensland.<br />

“The Brisbane Multi-User Terminal at Acacia Ridge supports the<br />

intermodal transport of containers destined for the wholesale and<br />

retail market in the south east Queensland area,” Queensland<br />

Rail said.<br />

ROLE OF SHIPPING LINES<br />

Meanwhile, on the maritime task, Maersk Oceania product and<br />

commercial planning manager Greg Paradine explained the critical<br />

IMG AND QUBE DEAL<br />

•<br />

•<br />

•<br />

IMG operates North Quay Rail Terminal and manages inland<br />

Forrestfield Intermodal Terminal<br />

Aims to get more containers off the road and onto rail<br />

Expected to help manage container freight in and out of<br />

Fremantle Port<br />

nature of the relationship between shipping companies and the<br />

logistics sector.<br />

Mr Paradine said Maersk played “a significant role” in the<br />

overall end-to-end management of international supply chains.<br />

This was in the form of international containerised shipping,<br />

customs formalities, intermodal rail and trucking moves or<br />

full supply chain management activities, all requiring close<br />

coordination and partnership with key providers and stakeholders.<br />

“Maersk facilitates these interactions through electronic data<br />

interchanges involving Maersk, the client, customs, stevedores and<br />

intermodal providers’ systems to enhance process efficiency and<br />

visibility across all parties,” Mr Paradine said.<br />

“This improved visibility within the Maersk client supply<br />

chain allows for optimised container flows and improved decision<br />

making, which when combined with supply chain management<br />

product provides the client with… significantly reduced lead-times,<br />

reduced inventory costs and an optimised supply chain.”<br />

FACT BOX<br />

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thedcn.com.au <strong>May</strong> <strong>2019</strong> 47


TUGS & TOWAGE<br />

TUG<br />

Ian Ackerman explores how the towage<br />

business in Australia is changing, through<br />

expansion, a new market entrant and<br />

focus on a more tailored,<br />

service-based offering<br />

Smit Lamnalco tugs at the Gladstone Tug Supply Base<br />

48 <strong>May</strong> <strong>2019</strong><br />

thedcn.com.au


On<br />

LIFE<br />

the surface, towage is simple: the tug guides a ship<br />

into or out of port, nudging it when needed, and can<br />

intervene to protect the vessel and port infrastructure<br />

in case of an emergency.<br />

However, as with most things in life, towage is<br />

more complicated. New technology is slowly creeping<br />

into the sector, enabling new and more efficient ways of<br />

assisting with ship movements. Additionally, the business<br />

environment in Australian towage is changing, with<br />

competition coming into several markets mostly serviced by<br />

one company in recent times.<br />

A CHANGING BUSINESS<br />

In October last year, Engage Marine announced it was<br />

beginning operations in the ports of Sydney and Geelong,<br />

stationing two tugs in each port (with one back-up tug based<br />

in Sydney). Engage Marine CEO Mark Malone told Daily<br />

Cargo News the enterprise had been going well so far.<br />

“We’ve always got room to do a bit more business,” he<br />

said. “It’s difficult, of course, starting something from<br />

scratch, but I think the market has supported us very well;<br />

we’ve had a lot of support from agents and shipping lines<br />

and we believe we’ve got a sustainable model in both those<br />

ports, and we want to use that as a base to grow from.”<br />

However, Mr Malone told <strong>DCN</strong> there weren’t any<br />

definitive plans for expansion at the time of writing, but<br />

there were three or four options under consideration.<br />

“We believe that most of the ports in Australia,<br />

certainly the larger ports, can sustain competition,” he<br />

said. “It’s about creating a choice for shipping lines by<br />

having a competitive tension to help raise standards.<br />

Smit Lamnalco<br />

thedcn.com.au <strong>May</strong> <strong>2019</strong> 49


TUGS & TOWAGE<br />

LNG tanker Pacific Notus<br />

Competition certainly helps avoid complacency in the service you<br />

give customers and what you charge them.”<br />

Mr Malone said a local mindset is an important part of the<br />

business model.<br />

“The key thing is the local focus, for us Geelong is a different<br />

business to Sydney. The decision makers for Geelong are based in<br />

Geelong; the decision makers for Sydney are based in Sydney,”<br />

he said.<br />

“A local mindset is really important for the sort of business we’re<br />

looking to establish and it will be replicated in the other ports we<br />

go into.”<br />

Engage Marine’s presence in Sydney and Geelong was further<br />

cemented in early February <strong>2019</strong> when it announced the<br />

establishment of a joint venture with international towage and<br />

marine services provider Smit Lamnalco.<br />

Mr Malone said that Engage Marine brings the local knowledge<br />

of the ports and a nimble, flexible structure to the joint venture.<br />

“We can set up specific businesses that are suitable for the port<br />

they are set up to serve,” he said.<br />

“I think the way the market has gone over recent times is<br />

national agreements, which means that every port is in some<br />

way looked at as the same, whereas every port in our eyes is<br />

very different.<br />

“I think by setting up multiple companies in the specific<br />

ports, we can tailor it to what that port wants from either a tug<br />

perspective or an availability perspective, and from a flexibility<br />

perspective as well. If something changes, by basing decision<br />

makers in the ports themselves, we can be far more responsive to<br />

what the port needs rather than relying on someone else far away<br />

from the market.”<br />

Mr Malone said what Smit Lamnalco brings to the joint venture<br />

was its scale.<br />

“Where we would have struggled on our own to build a company<br />

of scale, this is where Smit can benefit us; they’ve got the financial<br />

and global scale to help us grow the business in line with how we<br />

see it going,” he said<br />

“To me it’s a complementary joint venture where Smit bring<br />

the financial muscle and know-how to our local knowledge and<br />

flexibility.”<br />

The other major towage provider in the Sydney market, Svitzer<br />

Australia, has a similar philosophy on competition.<br />

Svitzer Australia managing director Nicolaj Noes said<br />

competition was nothing new to him, having a background in<br />

container shipping, and for Svitzer, competition does what it’s<br />

supposed to do.<br />

“It means that we sharpen up our product, we sharpen up our<br />

mindset, we sharpen up our customer engagement,” he said.<br />

“I see competition as working. It is making sure everyone is<br />

putting their best foot forward and trying a little harder; that’s<br />

what we’re doing.”<br />

He said one thing he found most interesting about the tug<br />

business was the fact that it is at an inflection point.<br />

“You’re taking something that historically and traditionally<br />

has been ultra-transactional and very much about a hardware and<br />

about a reactive service, you call and you show up and you leave<br />

again… into more of a service package and a service platform to<br />

customers. That transformation I think is the most interesting part<br />

of what’s going on at the moment,” he said.<br />

FLEET EXPANSION<br />

Svitzer earlier this year announced plans to add five tugs to its fleet:<br />

one 85-tonne bollard pull escort tug to be deployed at Port Kembla<br />

(Svitzer Ruby), one 80-tonne bollard pull escort tug for Fremantle<br />

(Svitzer Redhead). In addition to three 70-tonne bollard pull tugs<br />

for the Port of Geraldton.<br />

Mr Noes said the company was looking to have as diverse a fleet<br />

as possible to deal with constantly changing requirements.<br />

“We’re getting bigger ships, but we still have smaller tugs as<br />

well; some customers may need smaller tugs to them so that fleet<br />

flexibility is key,” he said.<br />

“We see the tug as a part of the port infrastructure. Yes, it floats<br />

but it really is a part of infrastructure and what we are trying to do<br />

Svitzer Australia<br />

50 <strong>May</strong> <strong>2019</strong><br />

thedcn.com.au


TUGS & TOWAGE<br />

and it’s a little unusual for infrastructure,<br />

is to be ahead of the game.”<br />

Mr Noes said the idea was to look at<br />

what the customers’ expectations are into<br />

the future rather than being in a situation<br />

where the company is constantly trying to<br />

remedy bottlenecks.<br />

He took Port Kembla as an example. The<br />

new tug that will be based at that port is<br />

heading there ahead of an expected LNG<br />

import terminal. This terminal is to be a<br />

floating regasification and storage unit, and<br />

will necessitate regular calls by large LNG<br />

carriers.<br />

“This is the same kind of carrier that<br />

takes the gas away from the Gorgon field<br />

or up in Gladstone as well. So we’re very<br />

familiar with the size of the vessels and<br />

the handling requirements of them,” Mr<br />

Noes said.<br />

“We’re sort of using that experience and<br />

Nicolaj Noes, managing director,<br />

Svitzer Australia<br />

“We recognise shipping lines’ need to<br />

drive efficiencies in their businesses is<br />

going to become even more prevalent going<br />

forward, and one way they can save is<br />

shorter port stays,” he said.<br />

“From our side, we see there is an<br />

opportunity around the fact that… what<br />

can happen in port stays is that you have<br />

a plan but something changes – a crane<br />

breaks down at the stevedores and suddenly<br />

everything has to be pushed back 30<br />

minutes.<br />

“But, when things change, it is not<br />

in isolation because with one data point<br />

changing, then the pilot’s data point has<br />

to change, the linesman has to change, the<br />

tugboat operator has to change. And if you<br />

don’t synchronise those elements and have<br />

them work in unison then often you have<br />

20 minutes wasted here where one party is<br />

finished but the next party is not ready.”<br />

saying for those vessels coming into Port Kembla… what do we<br />

think the requirements are going to be in terms of the capabilities<br />

of the tugs and the amount of the tugs that’s required to safely get<br />

an LNG carrier in there.”<br />

Also, Mr Noes said, the tugs required to handle these gascarrying<br />

vessels not only require a large amount of power, they<br />

also need to have next-level safety standards and operational<br />

procedures.<br />

“You need to be able to pull the LNG carrier if there is bad<br />

weather, it needs to get off the berth, or the engine fails, you need<br />

Mr Noes said vessels sitting idle because of the lack of<br />

co-ordination between the various parties at the port is something<br />

tug operators, such as Svitzer, are in a position to address.<br />

“It could be we’re saving 20 minutes here, 30 minutes there<br />

by bringing people together and saying, ‘Let’s make sure we’re all<br />

aligned, that we work off the same game plan and if things change<br />

then everything is synchronised’,” Mr Noes said.<br />

“Being able to address that by taking ownership of and<br />

responsibility for the whole process we feel is an exciting<br />

opportunity.”<br />

to drag it out even against the current so there is an underlying<br />

requirement just for the necessary horse power and oomph that’s<br />

able to do that as well,” he said.<br />

“When you guide the carrier to berth, the number of tugs you<br />

can surround it with allows you to act faster if something happens,<br />

especially when it comes into berth often the requirements for a<br />

turn are quite significant.<br />

“You sort of have to baby it in all the way around and be<br />

ready to act on any kind of contingency. And that’s the nature of<br />

contingency. If the engine suddenly fails, if the rudder fails, you<br />

don’t know where you are at any given time, whether you need to<br />

protect it from going left, or right, or backwards, or forwards.<br />

“For this kind of operation, you have to state of the art tugs in<br />

terms of escort capabilities, the sheer strength of them, and their<br />

firefighting capabilities.”<br />

Mr Noes said the variety of tug that Svitzer is sending to Port<br />

Kembla is similar to those already at the Port of Newcastle, which<br />

is also looking at installing an FSRU.<br />

“We are very keen to understand the future requirements in<br />

Newcastle. I think we have the fleet for it but we also have that<br />

expertise about how to handle gas vessels. It is a unique operation<br />

to handle gas carriers,” he said.<br />

INVESTING IN PEOPLE<br />

Back in late 2017, Engage Marine subsidiary Westug signed a<br />

co-operation deal with international towage services provider<br />

Kotug to operate the tugboat fleet for Fortescue Metals Group at<br />

Port Hedland.<br />

Engage Marine’s Mr Malone said operations would begin in late<br />

June or early July, and that recruitment for 78 positions was nearly<br />

complete. He said the company used traditional vehicles to recruit<br />

staff for the venture, but most were found through word of mouth.<br />

“The industry is such a small one that once you start a process,<br />

even if its internal, word gets out throughout the industry, we’ve<br />

had no issues at all finding teams for Port Hedland, and we’ve<br />

probably had at least 10 applications for every position that we’ve<br />

wanted to fill,” he said.<br />

Svitzer echoed this, with Mr Noes saying that the company has<br />

had a very good pipeline of colleagues that want to join.<br />

“They come from near coastal operators, barge operators in<br />

construction phase, or even from commercial fishing that comes in<br />

there as well,” he said.<br />

“And we’re working closely with AMSA and understanding the<br />

training we need to put in place that allows them to progress into<br />

engineers and deck hands and masters on our tugs.<br />

WHAT’S TO COME<br />

Looking ahead, Mr Noes said he was cognisant that Svitzer’s<br />

customers are facing cost pressure, particularly on the fuel side,<br />

and this pressure is only going to get worse with the new IMO<br />

regulations likely bringing in even higher fuel costs.<br />

“With the operations we have and generally in harbour towage,<br />

that allows us to train internally and give them the experience and<br />

make the moves up in their various grades and certification. It gives<br />

us a lot more flexibility to have a broader pipeline of talent coming<br />

in,” Mr Noes said.<br />

Svitzer Australia<br />

52 <strong>May</strong> <strong>2019</strong><br />

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MARITIME LAW<br />

Autonomous ships:<br />

<strong>2019</strong> update and the future<br />

Lawmakers here and overseas have their work cut out as the advent of autonomous<br />

ships gets closer write Michelle Taylor and Stuart Hetherington<br />

REGULATION OF AUTONOMOUS<br />

vessels and legislation dealing with their<br />

safety, manning and operation remain a<br />

particular challenge both nationally and<br />

internationally. The maritime world has<br />

seen a surge of stakeholders take an active<br />

interest in the development and innovation<br />

of autonomous shipping technology. There<br />

is no doubt that autonomous shipping<br />

will continue to develop throughout the<br />

transport industry and across the globe.<br />

Unmanned ships can generally be<br />

categorised according to their level of<br />

automation. In general terms, remotely<br />

operated vessels are controlled and operated<br />

by human operators located onshore in<br />

shore control centres. With completely<br />

autonomous vessels, a human operator<br />

inputs destinations and the vessel will<br />

navigate to these destinations without any<br />

further interaction being required.<br />

IMO AND MASS<br />

In April 2018, the Legal Committee of the<br />

International Maritime Organisation began<br />

a work program for Maritime Autonomous<br />

Stuart Hetherington, partner,<br />

Colin Biggers & Paisley<br />

Surface Ships with a target completion<br />

year of 2020. The aim of the IMO Legal<br />

Committee is to do a gap analysis of<br />

liability and compensation treaties and to<br />

scope the work required for MASS. This<br />

complements the work being done by<br />

the IMO Maritime Safety Committee on<br />

autonomous vessels. The committee has<br />

sought concrete proposals and comments<br />

on a plan of action.<br />

MASS LAW REQUIREMENTS<br />

The IMO Legal Committee work has<br />

been informed by a study of potential<br />

MASS legal requirements done by the<br />

Comite Maritime International, an<br />

international organisation comprising<br />

more than 50 national maritime law<br />

associations. The CMI has analysed eight<br />

IMO conventions: SOLAS (safety at sea),<br />

MARPOL (pollution), COLREG (collision<br />

regulations), STCW (seafarer standards and<br />

training), FAL (facilitation of international<br />

traffic), SAR (search and rescue), SUA<br />

(suppression of unlawful acts in maritime<br />

navigation) and salvage.<br />

DEVELOPMENTS IN UNMANNED<br />

VESSELS<br />

In November 2018 at the CMI Assembly<br />

meeting in London, retired High Court<br />

judge Sir Bernard Eder gave a presentation<br />

entitled Unmanned Vessels: Challenges Ahead.<br />

That presentation noted the following<br />

developments:<br />

• A claim made by Chinese state media<br />

concerning the fastest unmanned<br />

waterborne surface vehicle having a top<br />

speed of over 50 knots.<br />

• A Chinese company that started<br />

building the Wansham Marine Test Field<br />

for testing of autonomous maritime<br />

technology, which is claimed to be the<br />

largest facility of its kind in the world.<br />

• China celebrating the opening of its<br />

Hong Kong - Zhuhai - Macao Bridge<br />

by holding the largest cooperative<br />

Michelle Taylor, partner, Colin Biggers & Paisley<br />

unmanned boat manoeuvre in history<br />

using 81 boats.<br />

• Israel developing an unmanned boat<br />

known as the Katana, an unmanned<br />

surface vehicle.<br />

• Rolls Royce in the UK revealing plans for<br />

an autonomous, single role, naval vessel<br />

with a range of 3500 miles.<br />

• Rolls Royce and Svitzer successfully<br />

demonstrating the world’s first<br />

remotely operated commercial vessel in<br />

Copenhagen, Denmark in 2017.<br />

• The world’s first fully electric and<br />

autonomous cargo ship is being built in<br />

Vard Brevik, Norway, the Yara Birkeland.<br />

AUTONOMOUS SHIPPING CHALLENGES<br />

There are many challenges to consider<br />

with autonomous shipping, particularly<br />

with regulation. The UN Convention on<br />

the Law of the Sea, which is often referred<br />

to as the constitution of the seas, uses<br />

both “ship” and “vessel” interchangeably,<br />

and surprisingly, does not define either.<br />

Sir Bernard Eder has suggested the need<br />

for a “universal term that makes it plain<br />

that the concept of a ship or vessel does<br />

54 <strong>May</strong> <strong>2019</strong><br />

thedcn.com.au


Visco ; Colin Biggers & Paisley<br />

not necessarily depend upon the extent<br />

to which any crewman may or not be<br />

on-board”.<br />

The practical difficulties involved in<br />

amending each and every convention<br />

to have proper regard to safety when it<br />

comes to unmanned ships are evident. Sir<br />

Bernard Eder said an alternative may be<br />

to create “some overarching instrument<br />

along the lines perhaps of the Polar Code”,<br />

and new definitions for generic words<br />

such as “master” could be considered.<br />

While the focus of legal reform inevitably<br />

must be on safety, Sir Bernard Eder said<br />

it should not be overlooked that legal<br />

liability conventions also may need to be<br />

considered. Due diligence is something the<br />

courts will have to give consideration to<br />

in relation to questions of seaworthiness.<br />

Whether an owner has complied with its<br />

duties of due diligence in, for example, the<br />

carriage of goods liability regimes will be<br />

challenging in the context of MASS.<br />

Other industry leaders offered their<br />

views at the CMI Assembly during<br />

a workshop entitled The Challenging<br />

Convergence of Modern Technology,<br />

Cybercrime and Marine Insurance. Robert<br />

Veal from Southampton University<br />

questioned whether a more significant<br />

role for product or manufacturers’<br />

liability insurers concerning autonomous<br />

technology is necessary.<br />

International maritime lawyer Dr<br />

Lina Wiedenbach questioned whether<br />

the present fault-based liability regime<br />

in the Collision Regulations may have to<br />

be reassessed in the light of autonomous<br />

vessels. She queried whether there might<br />

have to be a shift from considering<br />

negligence in navigation to negligence in<br />

management.<br />

Dr Wiedenbach suggested that vicarious<br />

LEVELS OF AUTONOMY<br />

Yara Birkeland is a fully autonomous and electric cargo solution<br />

liability principles for independent<br />

contractors should be applied to operators<br />

of MASS; and that it might be necessary<br />

to extend the circle of persons for whose<br />

fault ship owners might be liable, creating a<br />

regime of strict liability for MASS.<br />

MARITIME SAFETY COMMITTEE<br />

FRAMEWORK<br />

In December 2018, the MSC approved<br />

the framework and methodology for the<br />

regulatory scoping exercise, which it had<br />

agreed to undertake in 2017. In effect,<br />

for each instrument related to maritime<br />

safety and security and for each degree of<br />

autonomy provisions are to be identified<br />

which apply to MASS and prevent MASS<br />

operation, or; apply to MASS and do not<br />

prevent MASS operations and require<br />

no action, or; apply to MASS and do not<br />

prevent MASS operations but may need<br />

to be amended or clarified, and/or may<br />

contain gaps, or; have no application to<br />

MASS operation.<br />

It was also decided that once the first<br />

step has been completed, the second step<br />

The Maritime Safety Committee has identified four degrees of autonomy. They<br />

are defined as follows:<br />

DEGREE 1: Ships with automated processes and decision support - seafarers are<br />

on board to operate and control ship port systems and functions. Some operations<br />

may be automated and at times be unsupervised but with seafarers on board ready<br />

to take control.<br />

DEGREE 2: Remotely controlled ship with seafarers on-board - the ship is controlled<br />

and operated from another location. Seafarers are available on-board to take<br />

control and to operate the ship board systems and functions.<br />

DEGREE 3: Remotely controlled ship without seafarers on-board - the ship is<br />

controlled and operated from another location. There are no seafarers on-board.<br />

DEGREE 4: Fully autonomous ship - the operating system of the ship is able to make<br />

decisions and determine actions by itself.<br />

will be to analyse and determine the most<br />

appropriate way of addressing MASS,<br />

taking into account the human element,<br />

technology and operational factors. The<br />

analysis will identify the need for:<br />

• Equivalences as provided for by<br />

the instruments or developing<br />

interpretations, and/or;<br />

Amending existing instruments, and/or;<br />

Developing new instruments, or;<br />

• None of the above as the result of the<br />

analysis.<br />

The instruments to be covered in the<br />

MSC scoping exercise for MASS includes:<br />

SOLAS, COLREG, Load Lines (loading<br />

and stability), STCW, STCW-F (training<br />

of seafarers and fishers), SAR, Tonnage<br />

Convention, CSC (safe containers) and STP<br />

(special trade passenger ships).<br />

ARE AUSTRALIA’S LAWS FIT FOR<br />

PURPOSE?<br />

The challenges for MASS do not only<br />

involve international regulatory bodies.<br />

The problems come much closer to home,<br />

when consideration is given to local<br />

legislation dealing with safety, manning,<br />

and operation of ships.<br />

While the definitions of “ships”<br />

and “vessels” in both federal and state<br />

legislation may be broad enough to<br />

encompass autonomous vessels, the<br />

more difficult question is whether the<br />

laws that are in force in national or state<br />

legislation relating to the operation,<br />

manning or safety features of such vessels<br />

are fit for purpose. Clearly at the time of<br />

enactment most such provisions did not<br />

have unmanned or autonomous ships in<br />

contemplation, let alone partly manned<br />

or partly autonomous. There is still much<br />

work to be done by regulators.<br />

thedcn.com.au <strong>May</strong> <strong>2019</strong> 55


TRADE LAW<br />

What happens next for our<br />

trade agenda after the election?<br />

Andrew Hudson examines the potential fate of pending FTAs and other trade-related<br />

issues that may, or may not, be affected by the upcoming federal election<br />

I WRITE THIS ARTICLE ON 12 APRIL,<br />

yet to secure the same benefits. Indeed, the<br />

shortly after the announcement of the<br />

engagement of SMEs seems to have flat-<br />

federal budget and the announcement of<br />

lined with little use of FTAs.<br />

the federal election date. As expected, this<br />

Both of the major parties share the<br />

period has included the usual claim and<br />

same interest in supporting SMEs getting<br />

counter-claim between the major political<br />

into exports and securing benefits from<br />

parties and a certain amount of cynicism<br />

the trade agenda and both have worked<br />

that even after the election, the political<br />

together to advance that agenda - and have<br />

landscape may not change significantly.<br />

advanced ideas to assist in that process.<br />

Given recent political history there is<br />

For example in the recent federal budget,<br />

also a level of interest (and concern) as to<br />

the federal government announced a<br />

what our preferential voting system will<br />

significant increase in funding for the<br />

deliver for the smaller political parties or<br />

Export Market Development Grant scheme<br />

independents. This is especially the case<br />

as well as more funding for the Trade Start<br />

with our Senate where the inability of a major<br />

program and continued funding for work<br />

party to secure a majority means the game of<br />

against non-tariff barriers. The recent<br />

persuasion and compromise will continue.<br />

parliamentary inquiries have endorsed<br />

That usually delivers unlikely alliances.<br />

the ongoing work of Austrade and other<br />

agencies to assist industry to understand<br />

Andrew Hudson, partner, Rigby Cooke Lawyers<br />

TRADE IS GOOD<br />

and use FTAs as well as enlisting the<br />

Unlike many countries (Brexit anyone?),<br />

assistance of groups such as licensed<br />

and the Department of Industry to work<br />

both major political parties share many<br />

customs brokers and freight forwarders to<br />

collaboratively to address NTBs.<br />

of the same views regarding trade. There<br />

similarly improve understanding and use<br />

certainly seems to be bipartisan support to<br />

of FTAs.<br />

CURRENT AND FUTURE FTAS<br />

advance the trade agenda to ensure growth<br />

The main point of difference now seems to<br />

in exports and GDP and deliver benefits to<br />

LABOR ANNOUNCEMENTS<br />

reside with what should actually be in FTAs.<br />

a wider class of members of society. These<br />

In a recent speech Labor trade spokesman<br />

For some time there has been resistance to<br />

views include support for the World Trade<br />

Jason Clare made several announcements<br />

certain aspects of FTAs, including investor<br />

Organisation and its dispute settlement<br />

of initiatives aimed at improving SME<br />

- state dispute settlement provisions which<br />

arrangements as the best means to address<br />

engagement including creating a category<br />

potentially enable the private sector to<br />

global trade tensions, albeit with some<br />

of “cleared advisors” from business,<br />

pursue disputes directly with sovereign<br />

changes to those arrangements to address a<br />

trade unions and other bodies (hopefully<br />

governments. Other concerns include<br />

number of legitimate concerns raised about<br />

industry associations). In a process<br />

the suspension of labour market testing<br />

the existing regime.<br />

similar to that existing in the US, those<br />

for skilled migrants and compromises<br />

The bipartisan approach extends to<br />

cleared advisors would have “real time”<br />

to existing regimes for biosecurity, trade<br />

support of free trade agreements being<br />

access to negotiations for FTAs including<br />

remedies, environment protection and<br />

negotiated such as RCEP, the Pacific Alliance,<br />

the versions of the text of the FTAs and<br />

direct foreign investment in crucial<br />

the EU and the UK. The federal opposition<br />

provide informed feedback to negotiators.<br />

industry sectors. Those concerns are seen<br />

seems to have expanded that agenda to<br />

Presumably this will not go as far as the full<br />

to have contributed to a sense of distrust<br />

include one deal across all APEC countries.<br />

US experience but it may create an additional<br />

on FTAs which had contributed to a lack<br />

level of transparency to encourage the<br />

of use as well as active opposition from<br />

IMPROVING THE POSITION OF SMES<br />

interest in the FTAs as they are negotiated<br />

some groups. For the federal opposition<br />

Recent research and reports by<br />

in the hope of “ownership” of the FTAs.<br />

these concerns led to the change of<br />

Parliamentary inquiries have confirmed<br />

only a relatively small section of society<br />

has engaged with the trade agenda and<br />

secured benefits while many SMEs have<br />

Mr Clare also addressed the issue of NTBs<br />

through the proposal to establish a joint<br />

team made up of officers from DFAT,<br />

Austrade, the Department of Agriculture<br />

policy position on FTAs during 2018 so<br />

that it would not endorse FTAs without<br />

an independent economic assessment<br />

of benefits of those FTAs. Further, the<br />

Ian Ackerman<br />

56 <strong>May</strong> <strong>2019</strong><br />

thedcn.com.au


opposition policy is now to oppose any<br />

FTAs which would include ISDS provisions<br />

or remove or reduce labour market testing<br />

requirements for skilled migration. Not<br />

only would that policy require rejection of<br />

future FTAs including such provisions but<br />

would also require Australia to approach<br />

existing FTA partners seeking to remove<br />

such provisions in existing FTAs. What is<br />

unclear is the level of commitment to such<br />

policy positions, namely will proposed<br />

FTAs be opposed based on those provisions<br />

in all cases or whether it would lead to<br />

withdrawal from existing FTAs.<br />

SOME PERSPECTIVE<br />

It is not that these positions are necessarily<br />

new - they have informed active debates<br />

here and overseas for years. Parties in<br />

opposing positions have extensive research<br />

and arguments. However the opposing<br />

positions have not been quite so clear<br />

until now and the unresolved question is<br />

whether they will be tested or register with<br />

the interests of the voters. The issue will<br />

return after the election as there are three<br />

main FTAs which have been negotiated and<br />

signed by the federal government but which<br />

have yet to be cleared by the parliamentary<br />

There certainly seems to be bipartisan support to<br />

advance the trade agenda in a way to ensure growth<br />

in exports and GDP.<br />

process including review by the Joint<br />

Standing Committee on Treaties and the<br />

passage of enabling legislation mainly<br />

relating to customs procedures. That<br />

process became heated relating to ChAFTA<br />

and TPP11 but they were eventually ratified<br />

and implemented.<br />

In the case of the Peru-Australia FTA,<br />

the deal has been before JSCOT (twice)<br />

for general endorsement but enabling<br />

legislation has yet to be passed. In the case<br />

of the Indonesia-Australia Closer Economic<br />

Partnership Agreement and the Australia-<br />

Hong Kong Free Trade Agreement, while<br />

both have been signed, both need to pass<br />

through the JSCOT process as well as<br />

securing the passage of relevant customs<br />

legislation. Whether there is a change in<br />

government or there remains a lack of a<br />

majority in the Senate, then there is likely<br />

to be an ongoing contested process for<br />

these FTAs especially as the opposition<br />

trade spokesman was only prepared to say<br />

that he looked forward to those FTAs being<br />

subjected to Parliamentary scrutiny.<br />

FINAL THOUGHTS<br />

In the absence of a clear majority for either<br />

major party after the election, our ongoing<br />

FTA agenda is less clear. It may well depend<br />

on the level of conviction of both major<br />

parties or the position of any smaller<br />

parties or independents who control the<br />

Parliamentary process. If Labor takes clear<br />

control of Parliament then there does exist<br />

the risk that completion of proposed FTAs<br />

that are still being negotiated such as the<br />

EU and UK FTAs (let alone the current<br />

deals or other future deals) may be more<br />

difficult. Ultimately however, the theories<br />

of political position are often overcome by<br />

sensible compromise.<br />

It won’t quite be Brexit but it will be<br />

interesting.<br />

12th Annual<br />

SA Major Projects<br />

Conference <strong>2019</strong><br />

OVERVIEW OF SOUTH<br />

AUSTRALIA’S MAJOR DEFENCE<br />

PROJECTS<br />

SOUTH AUSTRALIA’S<br />

ENERGY TRANSFORMATION<br />

124-METRE TALL STUDENT<br />

ACCOMMODATION TOWER<br />

PORT AUGUSTA RENEWABLE<br />

ENERGY PARK (PAREP)<br />

SA WATER – A CARBON<br />

NEUTRAL WATER UTILITY<br />

$350 MILLION SAHMRI 2<br />

PROTON THERAPY CENTRE<br />

EXPLORING THE NEXUS<br />

BETWEEN TOURISM AND<br />

INFRASTRUCTURE<br />

COST EFFECTIVE POWER:<br />

NO LONGER A PIPE DREAM<br />

FOR MAJOR PROJECTS<br />

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thedcn.com.au <strong>May</strong> <strong>2019</strong> 57


THE FORWARDER<br />

Enhanced air cargo security<br />

examination – up and away<br />

Stuart McFarlane from AFIF analyses some of the finer details<br />

of the new air cargo security regime<br />

AS REPORTED IN THE MARCH<br />

The percentage of pre-screened cleared<br />

edition of Daily Cargo News, the Australian<br />

cargo received at the CTOs is growing week<br />

government, through the aviation<br />

on week with minimal delays in processing<br />

and maritime security division in the<br />

cargo acceptance and truck unloading.<br />

Department of Home Affairs, announced<br />

The main issues raised by AFIF over<br />

in <strong>May</strong> 2018 changes to export air cargo<br />

the past month, in particular were in two<br />

security, including all export air cargo<br />

areas: homogenous cargo and cargo security<br />

being examined at piece-level by 1 March<br />

declaration. Interpretation and application<br />

<strong>2019</strong>. From 1 March <strong>2019</strong>, all export<br />

of the AMSD definition of homogenous<br />

freight carried internationally by air from<br />

cargo has been problematic for some<br />

Australia must either be examined at<br />

AACAs, RACAs and CTO stations. AMSD<br />

piece-level by a regulated air cargo agent<br />

consulted with industry representatives<br />

or originate from a known consignor, and<br />

and arrived at the current definition in<br />

be issued with a valid security declaration<br />

November 2018. Guidance material is also<br />

before it can be accepted at the airline<br />

available for RACAs through the AMSD<br />

terminal for uplift.<br />

Guidance Centre.<br />

RACAs are an important part of the air<br />

cargo supply chain. They are responsible<br />

DEFINITION OF HOMOGENOUS CARGO<br />

for examining international outbound<br />

air cargo before it is uplifted onto an<br />

aircraft. Unless cargo originates from a<br />

Cargo is homogenous where each individual<br />

item within the box, carton, package or<br />

other similar container is of the same<br />

Stuart McFarlane, business affairs manager,<br />

Australian Federation of International<br />

Forwarders<br />

known consignor, it must be examined<br />

size, shape, material and density to enable<br />

and cleared by a RACA before being loaded<br />

detection of any anomalies. The physical<br />

airport RACA sites supplying CSDs to<br />

onto an aircraft. Examination at piece-level<br />

characteristics and the design elements of<br />

the CTOs. CTOs are finding there are<br />

is undertaken by a RACA using security<br />

the packaging for each item are also the<br />

variations of the CSD format and quality of<br />

screening technology, usually X-ray or<br />

same. Some differences are acceptable, for<br />

information being provided, mainly from<br />

metal detection. Off-airport RACAs and<br />

example, slight variations in size.<br />

known consignors. CTOs are encouraging<br />

on-airport cargo terminal operator RACAs<br />

AFIF and AMSD continue to encourage<br />

industry to use the IATA CSD template<br />

are examining international air cargo at<br />

industry to contact their RACA to discuss<br />

which contains the required fields. The<br />

more than 100 locations across Australia.<br />

whether their cargo is considered to be<br />

IATA CSD is a global standard document.<br />

homogenous. If industry have examples of<br />

EXPERIENCE TO DATE<br />

cargo which is being refused acceptance<br />

CONCLUSION<br />

It has been 12 months since the<br />

under the new EACE rules and you wish<br />

The transition of the EACE arrangements<br />

government announced the changes and<br />

to seek clarification from AMSD, contact<br />

is a phenomenal outcome. AFIF’s heavy<br />

two months since the commencement of<br />

1300 791 581 or email: GuidanceCentre@<br />

involvement in the process provided<br />

new EACE security measures on 1 March.<br />

homeaffairs.gov.au<br />

us with an insight into how positive<br />

The feedback from CTOs, off-airport<br />

government and industry engagement,<br />

RACAs, AACAs, known consignors and<br />

CARGO SECURITY DECLARATION<br />

collaboration and cooperation can deliver<br />

AFIF members has been generally positive.<br />

Cargo security declaration format details<br />

a major transformation of business<br />

Reports are that the transition to the new<br />

have been an issue raised by the CTOs, with<br />

operations in a tight timeframe. Industry<br />

EACE measures was orderly and did not<br />

instances of inconsistent and incomplete<br />

has invested heavily in new security<br />

result in major delays or congestion at the<br />

information supplied. AMSD does not<br />

screening equipment, adapted their<br />

container terminal operators.<br />

specify the format of the CSD. Legislation<br />

operational processes and collaborated<br />

AMSD’s approval of RACAs and known<br />

consignors, at over 500 sites, has been the<br />

catalyst for easing the burden of screening<br />

uncleared cargo at the CTOs.<br />

specifies 10 information fields must be<br />

provided in the CSD.<br />

There are now more than 300 known<br />

consignor sites plus more than 100 off-<br />

with AMSD to deliver a significant security<br />

outcome for Australia. The aim of increased<br />

security on aircraft is shared by everyone<br />

who flies.<br />

Image supplied<br />

58 <strong>May</strong> <strong>2019</strong><br />

thedcn.com.au


INDUSTRY OPINION<br />

Industry must benefit from<br />

the Biosecurity Imports Levy<br />

Zoran Kostadinoski runs his eye over plans for the Biosecurity Imports Levy<br />

and notes areas for possible improvement<br />

IT HAS BECOME EVIDENT<br />

funding the challenged biosecurity system,<br />

international trade is an easy target for<br />

under the existing cost recovery model.<br />

government agencies to generate revenue<br />

and manage the border and biosecurity<br />

COLLECTION MODEL<br />

systems. This Biosecurity Imports Levy<br />

In any international trade transaction cost<br />

was a recommendation of the 2017<br />

transparency is important and for this<br />

Independent review of the capacity of<br />

reason the CBFCA believes the committee<br />

Australia’s biosecurity system. The levy is<br />

and the minister need to consider the<br />

estimated to raise $325m from <strong>2019</strong>–20<br />

collection model via the existing Full<br />

and was scheduled to start on 1 July <strong>2019</strong>.<br />

Import Declaration, as this is transparent<br />

The government has changed the start date<br />

and prevents the collector adding<br />

to 1 September <strong>2019</strong>. An Industry Steering<br />

additional administration charges on top<br />

Committee, appointed by the minister<br />

of the levy. This is already an acceptable<br />

for agriculture and water resources, is to<br />

practice within the importing community,<br />

consult with industry on the proposed levy<br />

which will ultimately end up paying the<br />

and provide advice to the minister. CBFCA<br />

levy and passing down the supply chain to<br />

representatives recently met with the<br />

consumers. The CBFCA opposes any cross-<br />

committee to discuss the levy design and<br />

subsidisation, as all biosecurity system<br />

further responded with a submission on the<br />

discussion paper released for comment.<br />

users should pay the levy.<br />

Zoran Kostadinoski, regional manager for<br />

Victoria, Tasmania and South Australia, CBFCA<br />

COLLECTION ALTERNATIVES<br />

CBFCA VIEW<br />

If the committee determines the FID is<br />

improvements to frontline biosecurity<br />

The CBFCA’s view is that Australia’s<br />

an unviable collection model, the CBFCA<br />

protection and improved service levels.<br />

biosecurity system must be underpinned<br />

supports collection models that do not<br />

The biggest impact for CBFCA members<br />

by a modern and effective regulatory<br />

involve any commercial operator, as this<br />

and clients is in the imports program.<br />

framework. Currently, biosecurity is<br />

levy will be an impost on operators, and<br />

This is mainly due to the department’s<br />

managed under the Biosecurity Act 2015,<br />

the levy will increase substantially. In the<br />

inability to manage the increased number<br />

and related regulations. The CBFCA notes<br />

case of sea freight it should be levied on<br />

of FIDs submitted by industry for brown<br />

Australia’s biosecurity risks have changed<br />

the port authority based upon containers<br />

marmorated stink bugs’ assessment with<br />

significantly in the last decade.<br />

discharged, passengers and tonnage as the<br />

existing resources and out-dated systems,<br />

The CBFCA understands the biosecurity<br />

ports do now and will include it in the port<br />

resulting in failure to meet current client<br />

system includes pre-border, at-the-border<br />

service charges, which are regulated. The<br />

service standards during the BMSB season.<br />

and post border activities, which need to<br />

same applies to air freight where it could<br />

be funded or cost recovered, in order to<br />

be levied on the airport authority. The levy<br />

FINAL THOUGHTS<br />

reduce the regulatory burden on compliant<br />

then will be collected as an expense to<br />

The CBFCA has made a submission<br />

businesses. The CBFCA hopes increased<br />

operate an international port, airport, or<br />

highlighting these issues to the inspector-<br />

funding will enable the management of<br />

post facility, reducing the risk of any levy<br />

general of biosecurity, Dr Helen Scott-<br />

biosecurity risks in a responsive manner,<br />

increase in a commercial environment.<br />

Orr, who has undertaken an independent<br />

to enhance Australia’s capacity to manage<br />

review - assessment of the effectiveness of<br />

biosecurity risks and ensures Australia<br />

INDUSTRY MUST BENEFIT<br />

biosecurity measures to manage the risks of<br />

remains competitive in international trade.<br />

The CBFCA will continue to advocate<br />

BMSB entering Australia.<br />

that the department ensure effective<br />

The CBFCA looks forward to the findings<br />

THE CONCERN<br />

biosecurity outcomes are delivered without<br />

from the independent review and working<br />

The CBFCA has concerns that funds from<br />

unnecessary impediments to trade.<br />

collectively with all key stakeholders to<br />

the levy will go into consolidated revenue<br />

The CBFCA will also advocate for<br />

ensure that the biosecurity protections<br />

CBFCA<br />

and not allocated to the imports, exports,<br />

and seaports programs, which are currently<br />

government commitment to allocate<br />

significant revenue from the levy to<br />

are met while ensuring the viability of<br />

international trade.<br />

thedcn.com.au <strong>May</strong> <strong>2019</strong> 59


INDUSTRY PROFILE<br />

Making milestones<br />

After a quarter of a century running a stand-alone business, father and daughter team<br />

Bill and Janice O’Connor reflect on the nature of business and some cultural changes<br />

along the way. By David Sexton<br />

THE YEAR WAS 1993.<br />

decided to buy their Melbourne operation<br />

Bill Clinton was inaugurated as US when the Swedes decided to exit the local<br />

President, Paul Keating’s ALP won a famous market. “Unfortunately for them, some<br />

victory over John Hewson’s Coalition and of the business they bought, particularly<br />

Australia retained the Ashes in England. in New South Wales, they just couldn’t<br />

Meanwhile, Bill O’Connor established manage it,” he recalls. “After four years<br />

Allied Seafreight Logistics (or ASF) in the the Swedes came back and things had hit<br />

western suburbs of Melbourne.<br />

rock bottom.”<br />

“It has all gone by in the blink of an<br />

So Bill moved to buy the ASG Melbourne<br />

eye,” Bill says over a cup of coffee with operation, rebranding it as ASF Allied<br />

<strong>DCN</strong>. Now mostly retired (he works one Seafreight and General. Before going out<br />

day a week, allowing plenty of time for on his own, he sounded out the market.<br />

golfing and fishing), Bill reflected on the “So we approached local businesses to see<br />

past quarter of a century and back even if they would continue to support us and<br />

further to his decision to move from<br />

they said ‘yes’, if the rates were good, and<br />

Ireland to Australia in the early 1980s. In the service was good,” he says. A good<br />

Ireland he had a background in trucking, relationship was struck with the old ASG<br />

first as a driver and later as a manager. who basically agreed to vendor finance for<br />

Bill took a job with <strong>May</strong>ne Nickless (“a the first year.<br />

brilliant company to work for”) and then<br />

when that business shifted from transport A FAMILY OPERATION<br />

he was headhunted by the Swedish freight Bill reflects upon the change of culture<br />

forwarder ASG to run its Melbourne<br />

from an international corporate to a family<br />

operations and build a land transport business. “It was all about creating a team.<br />

division.<br />

When we were ASG, there wasn’t much of a<br />

Bill helped build up ASG’s Australian team around,” he says.<br />

business for several years, then later<br />

“So it was about getting the message<br />

Janice and Bill O’Connor at their Laverton premises in Melbourne’s west<br />

across that the only way we’re going to<br />

do this as a standalone business is by<br />

everybody understanding their part and<br />

the importance of the work that they<br />

were doing.”<br />

The family aspect of ASF was enhanced<br />

with Bill’s daughter Janice and wife Marie<br />

coming on board.<br />

“There’s no doubt we had to change the<br />

culture of the business and it was around<br />

that time that mum and I both came on<br />

board,” Janice O’Connor recalls.<br />

A MAN’S WORLD?<br />

Janice O’Connor’s story is interesting in<br />

itself, being one of those tough women who<br />

forged a career in the world of logistics,<br />

a field traditionally dominated by blokes.<br />

“For me at the start, you’d go to a client’s<br />

warehouse and you’d still see the nudie<br />

calendars,” she says.<br />

“You see just how the industry has<br />

changed over the years. I think I always had<br />

to prove myself a bit more, not only being<br />

the boss’s daughter, but then also being a<br />

female and gaining the respect that I don’t<br />

have to drive a truck or use a forklift to<br />

be able to successfully manage a logistics<br />

business.”<br />

Janice notes attitudes have changed,<br />

particularly during the past 10 years.<br />

“So that has been extra-challenging but<br />

also very rewarding. Having the support<br />

and dad’s faith in me to be able to do it was<br />

a big thing,” she says.<br />

“It is a tough industry but it actually can<br />

pay quite well. You can learn something<br />

from the ground up without necessarily<br />

having a formal degree.”<br />

Bill notes his daughter put in a lot of<br />

time in her studies and post graduate<br />

qualifications. He is proud to have created<br />

a business that provides flexibility, allowing<br />

mothers to balance work and family.<br />

“Because we are a family business, we’ve<br />

always encouraged that and developed<br />

people like that,” he says.<br />

David Sexton<br />

60 <strong>May</strong> <strong>2019</strong><br />

thedcn.com.au


INDUSTRY OPINION<br />

What constitutes free trade?<br />

Paul Bettany takes a combative look at global developments in the world of trade<br />

INTERNATIONAL TRADE<br />

Rust Belt), which Trump recognised and<br />

agreements have been the engine of global<br />

appealed to in the 2016 election. He has<br />

growth for many years as capitalism has<br />

now set about changing the global trade<br />

spread and even communist countries<br />

agreements to fulfil his election promises<br />

have accepted the system as the engine of<br />

and rebuild manufacturing.<br />

growth. Asian autocracies and totalitarian<br />

President Clinton created NAFTA,<br />

regimes have accepted that free markets<br />

between the USA, Canada and Mexico<br />

allocate resources more efficiently than<br />

which created a huge ‘free trade zone’ but<br />

command economies and global trade is<br />

led to a transfer of manufacturing away<br />

the marketplace for all countries to prosper.<br />

from the United States. Car manufacturers<br />

moved to the cheaper production countries,<br />

PROBLEMS ARISE<br />

but guaranteed markets for the cars, in the<br />

But free trade agreements have been anything<br />

USA through NAFTA. Trump has addressed<br />

but free and fair. The parties negotiate from<br />

this and re-negotiated this agreement into<br />

unequal positions, with dominant trade<br />

the USMCA, which addresses production<br />

parties in most cases receiving a better<br />

and the market imbalances.<br />

deal. Political considerations also have also<br />

been influential, with western countries<br />

CHINA AND THE US<br />

allowing unbalanced trade agreements to<br />

China is the other major problem facing<br />

Paul Bettany, director, Collinson & Co<br />

encourage regimes to open their economies.<br />

the US trade deficit. The US had a trade<br />

China was accepted into the WTO and<br />

deficit of up to USD$500bn with China,<br />

CURRENCIES AND FOREIGN EXCHANGE<br />

has become the world’s second largest<br />

as it exported under beneficial WTO rules,<br />

As fundamental trade paradigms change, so<br />

economy, all the while benefitting from<br />

while restricting US exports to China.<br />

do trade flows and the currencies associated<br />

emerging nation status.<br />

The US has been waging a trade war with<br />

with these realignments. The US/China<br />

Tariffs still exist under FTAs, it is just<br />

China, for the best part of a year. The<br />

trade wars have caused severe disruption to<br />

which products are covered, or what the<br />

Americans want a comprehensive free trade<br />

the existing Chinese commodity suppliers,<br />

tariff level is. One of the unfortunate<br />

agreement addressing not only tariffs but<br />

including Australia. The disruption to<br />

by-products of these agreements has<br />

capital flows, investment and IP theft/<br />

the supply chain has hit trade-exposed<br />

been that manufacturing has been<br />

transfers. The deadline was set for 29<br />

countries and currencies. The Australian<br />

transferred to low-wage economies and<br />

March <strong>2019</strong> at the G20 conference, but has<br />

dollar has fallen from above US80c to trade<br />

developed countries have suffered massive<br />

since been delayed, until early this month.<br />

just above US70c at times over the last year<br />

manufacturing job losses and all the social<br />

The impact on global growth and on<br />

or so. The impact has been dramatic and<br />

fallout that entails. Western, developed<br />

economic sentiment from these trade wars<br />

understandable, considering the extreme<br />

nations have become dependent on service<br />

has been immense. The US economy has<br />

uncertainty flushing through markets.<br />

and capital intensive industries or resources<br />

continued to boom under lower taxes and<br />

A US/China trade agreement will have<br />

sectors to support their economies. Low-<br />

deregulation, while Chinese markets have<br />

a positive impact on global economic<br />

wage countries such as China, Vietnam and<br />

been severely impacted.<br />

sentiment and the Australian dollar. Once<br />

Mexico have become the new factories of<br />

the agreement has been signed, the detail<br />

the world. This has suited corporate giants<br />

BREXIT AND THE EU<br />

will be revealed and the impact on the<br />

who have cut the cost of production while<br />

The Brexit chaos and disruption continues<br />

supply chain will become more apparent.<br />

accessing markets via FTAs.<br />

with no immediate solution. Parliament<br />

If the access to Chinese markets for US<br />

has failed to negotiate Brexit from<br />

exports impacts current Australian trade,<br />

TRUMP AND FTAS<br />

Europe and chaos and disruption has<br />

then it could reverse any initial positives<br />

The Trump administration has sought<br />

ensued. The UK economy has remained<br />

gained by the global trade benefits. It is<br />

to address inequities in global trade. The<br />

remarkably resilient throughout this chaos,<br />

for this reason trade dependent industries<br />

US administration recognised the huge<br />

showing continuing economic growth<br />

must be prepared for all outcomes and<br />

Collinson & Co<br />

trade imbalances that have, they argue,<br />

resulted in massive trade deficits. The<br />

social fallout has been massive, hollowing<br />

out manufacturing intensive states (the<br />

and performance despite the testing<br />

circumstances. The latest extension is until<br />

31 October, but there is no reason to expect<br />

a different result.<br />

possibilities.<br />

Paul welcomes your comments, which can be<br />

emailed to him at: paul@collinsonfx.com<br />

thedcn.com.au <strong>May</strong> <strong>2019</strong> 61


OUT & ABOUT<br />

MSC hosted its own<br />

spectacular fireworks<br />

on Sydney Harbour to<br />

celebrate 30 years of<br />

operation in Australia<br />

Many causes for celebration<br />

From fireworks to sports,<br />

it was a busy month for<br />

the shipping community.<br />

PERHAPS THE HIGHLIGHT OF THE<br />

social calendar was the celebration MSC’s<br />

30 years of operation in Australia. The<br />

company brought together staff, clients<br />

and partners for a gala cruise on Sydney<br />

Harbour on 5 April which included no<br />

less than a tugboat salute and spectacular<br />

fireworks display. Industry stalwart and<br />

chairman of MSC in Australia and New<br />

Zealand, Captain Michele Bordiga, was on<br />

hand to help recap some of the company’s<br />

remarkable achievements.<br />

Meanwhile, in Victoria the shipping<br />

community gathered at Waterford Valley<br />

Golf Course in early April for the Phil<br />

Kelly OAM Perpetual Trophy. Victory came<br />

to Leigh Taylor’s Westlink Container Park<br />

entry while the two longest drives were won<br />

respectively by Ben Moke from DPWA and<br />

Tom Hill from Port of Melbourne.<br />

Meanwhile the Customs Brokers and<br />

Forwarders Council attracted a large<br />

group to its Sydney event at Stamford<br />

Plaza Sydney Airport. Speakers included<br />

trade lawyers, senior bureaucrats, industry<br />

experts and more.<br />

Competing for the Phil Kelly OAM Perpetual Trophy was the Svitzer team<br />

made up of Dylan Sheehan, David Ayres, Simon Cass and Peter Cream<br />

Winners of the Phil Kelly OAM Perpetual Trophy were the Westlink Container Park team<br />

including Leigh Taylor, Sebastian Moreau, Tony Nelson and Simon Douglas-Denton,<br />

receiving their trophy from SAL Victoria chair Rod Begley (second from right)<br />

CBFCA; SAL; MSC<br />

62 <strong>May</strong> <strong>2019</strong><br />

thedcn.com.au


Wendy Stanton, Scott Carson, Dino Baliva and John Park<br />

Eve Reddy and Steve Tzaneros<br />

Antony Fatouros, Cameron Allan and Sue Danks<br />

Kelly Veney<br />

and<br />

Domenic<br />

Altobelli<br />

PAE team, Charles Masters from Shipping Australia, James Kurz<br />

and Brent Piening from PAE with Mile Jurcic from SCI Australia<br />

Kevin Clarke, managing director MSC Australia and NZ;<br />

Captain Michele Bordiga, chairman MSC Australia and<br />

NZ; and Maurice James, Patrick Terminals<br />

thedcn.com.au <strong>May</strong> <strong>2019</strong> 63


PORT SUSTAINABILITY<br />

THE INTERNATIONAL ASSOCIATION<br />

of Ports and Harbours and the World<br />

Port Sustainability Program held a<br />

two-day workshop and forum to discuss<br />

sustainability in practice.<br />

Jason Sprott and Renee Hovey from<br />

Australian consultancy practice Sprott<br />

Planning & Environment attended the<br />

forum with port colleagues from Europe,<br />

Africa, Asia, New Zealand, North and<br />

South America.<br />

“Clearly, the landscape has changed and<br />

sustainability means so much more than<br />

simply a narrow focus on environmental<br />

and ecological issues,” Mr Sprott said.<br />

“Our experience in working with<br />

Queensland ports is that this is well<br />

understood and our clients are seeing the<br />

advantage of adopting a whole of business<br />

approach”, Ms Hovey said.<br />

“The event... was an ideal forum for a<br />

wide range of ports to share information<br />

and insights regarding the use of the<br />

SDG platform as part of good strategy<br />

development.”<br />

Since the launch of the World Port<br />

Sustainability Program in March<br />

2018, ports across the globe have been<br />

determining what the United Nations<br />

Sustainable Development Goals mean for<br />

their business and governance. Some ports<br />

Jason Sprott and<br />

Renee Hovey at the<br />

United Nations<br />

headquarters in<br />

Geneva<br />

UN hosts port<br />

sustainability forum<br />

Paula Wallace reports on the port sustainability forum<br />

held recently in Geneva at the UN headquarters<br />

are more advanced than others and the<br />

meeting in Geneva enabled open discussion<br />

on various approaches. In addition,<br />

shipping line MSC and financial institution<br />

BNP Paribas outlined what sustainability<br />

means to them as businesses and what<br />

strategies they are pursuing in this area.<br />

MORE ACTION NEEDED<br />

Representing Ports Australia at the forum,<br />

Mr Sprott and Ms Hovey tabled a new<br />

publication Ports and a Sustainable Australia<br />

that highlights sustainability work under<br />

way across Australia.<br />

“The document was very well received<br />

and highlighted a snapshot of work around<br />

the country. We should be very proud of<br />

the work under way in Australia across<br />

many ports, however there is more work to<br />

do, particularly in the areas of ‘front-end’<br />

climate change policy,” Mr Sprott said.<br />

“Whilst our ports are demonstrating<br />

commitment to addressing climate change<br />

adaptation and resilience, we need to be<br />

more active in front-end issues in terms<br />

of emission reductions, transition to<br />

cleaner fuel types and cleaner operational<br />

activities.<br />

“Longer-term aspirational targets are<br />

needed throughout our industry. We also<br />

need to see robust studies focusing on the<br />

impact of climate change for certain trades<br />

and commodity types, as ports will need<br />

to adapt.”<br />

PROGRESS USING SDG PLATFORM<br />

Ports at the forum indicated that they are<br />

taking action against the SDG framework,<br />

although progress is varied.<br />

“There is a strong commitment to the<br />

platform and while there was evidence<br />

SDGs are addressed at a ‘project’ level, we<br />

expect there will be further contribution to<br />

the WPSP database and it is hopeful there<br />

will be additional progress to integrate<br />

SDGs at a ‘strategy’ level.” Ms Hovey said.<br />

“The UN recommends businesses<br />

evaluate their activities and their current<br />

and potential impacts against the SDGs,”<br />

explains Mr Sprott, adding that not all<br />

SDGs are materially significant to every<br />

business.<br />

“Ports are clearly not expected to address<br />

all 17 goals and 169 targets,” Ms Hovey said.<br />

In Australia, Queensland ports are<br />

taking strong action and undertaking<br />

targeted assessments of each SDG as part<br />

of strategy development work. Mr Sprott’s<br />

company is currently working with all<br />

Queensland ports and has just started<br />

working with some in New Zealand.<br />

“To us, sustainability can help tell the<br />

story of ports very well – capturing a whole<br />

range of good historical work and outlining<br />

renewed commitments in forward years. This<br />

is generally well received by stakeholders<br />

including local communities, interest<br />

groups and regulators,” Mr Sprott said.<br />

“Ports have an opportunity to lead, and<br />

we are encouraged by many ports taking a<br />

renewed approach to sustainability.<br />

“Critically, ports should be developing<br />

key strategies with both short and longer<br />

term targets – ensuring that sustainability<br />

is not simply an action list, but<br />

rather a whole of business approach with<br />

a clear commitment over many years,”<br />

Mr Sprott said.<br />

LOOKING AHEAD<br />

The forum wrapped up with a commitment<br />

from the IAPH/WPSP managers to prepare<br />

a forward program of events over the next<br />

two years.<br />

“It will be exciting to see the forward<br />

WPSP program which will help Australian<br />

ports work out how they can become more<br />

involved and take advantage of the network<br />

of colleagues and leading project examples<br />

from around the globe,” Ms Hovey said.<br />

64 <strong>May</strong> <strong>2019</strong><br />

thedcn.com.au


MISSION TO SEAFARERS<br />

The value of seafarer<br />

welfare committees<br />

Shane Hobday explains how charities, the private sector<br />

and government are improving the lives of seafarers<br />

THE SHIPPING INDUSTRY DEPENDS<br />

on the seafarers who crew the ships of the<br />

world’s commercial fleets. The welfare of<br />

those seafarers is a major factor in the safe<br />

working and operation of the industry.<br />

However, until early last decade, there<br />

had been little in the way of a coordinated<br />

international and national approach to this<br />

vital human aspect. As an island nation,<br />

Australia is totally dependent on the<br />

shipping industry for the export and import<br />

of many of its day-to-day products, with<br />

more than 98% of our trade with the rest of<br />

the world being delivered by ship.<br />

Shane Hobday, director,<br />

Mission to Seafarers & chair,<br />

Sydney Seafarer Welfare Committee<br />

Meetings are attended by representatives<br />

from the welfare organisations (Mission to<br />

Seafarers, Stella Maris, Seamans Christian<br />

Friend Society), Australian Maritime Safety<br />

Authority, Australian Mariners Welfare<br />

Society, Shipping Australia, Port Authority<br />

of NSW, NSW Ports, stevedores, ITF and<br />

Tas Bull Seafarers Foundation.<br />

KEY RELATIONSHIPS<br />

Through the relationships developed in<br />

these meetings during recent months the<br />

welfare organisations were able to provide<br />

prompt support to seafarers on a number of<br />

ships that had been involved in incidents.<br />

In addition, the committee has actively<br />

pursued a number of initiatives to improve<br />

the experience of seafarers when visiting<br />

Sydney’s ports including:<br />

• Working with the Port Authority of<br />

NSW to ensure all ships are aware of the<br />

seafarer welfare services available before<br />

entering Sydney ports;<br />

• Free Wi-fi on the Mission to Seafarers<br />

Sydney bus during the trip to and from<br />

Port Botany with the support of the Port<br />

Authority of NSW;<br />

• Free Wi-fi for seafarers at various<br />

locations at the Port Botany facilities of<br />

NSW Ports and Patrick Terminals;<br />

• Investigation by Tas Bull Seafarer<br />

Foundation of how to provide a portwide<br />

Wi-fi system;<br />

• Delivering small gift packs to the<br />

seafarers in port on Christmas Day.<br />

Based on feedback from seafarers visiting<br />

Sydney’s ports, access to the internet is<br />

viewed as the most important port-based<br />

welfare service, hence it has been a key<br />

focus area of the committee.<br />

The Sydney Seafarers Welfare Committee<br />

provides a report to the Australian<br />

Seafarers Welfare Council. The report<br />

outlines progress on key initiatives and<br />

identifies where assistance is required.<br />

EYES AND EARS<br />

These port committees are the eyes and<br />

ears of seafarer welfare in Australia<br />

and therefore key to improving the<br />

lives of seafarers visiting Australian<br />

ports. To be effective the committees<br />

need representation from all welfare<br />

organisations, port operators, AMSA,<br />

shipping industry, stevedores and other<br />

relevant stakeholders.<br />

SEAFARERS AND THE MLC<br />

The Maritime Labour Convention 2006<br />

requires the establishment of seafarer<br />

welfare committees at the port, at both<br />

a regional and national level. At the<br />

national level Australia has established<br />

the Australian Seafarers’ Welfare Council<br />

to ensure the adequacy of existing<br />

seafarer welfare facilities and to assist<br />

in coordination of port/regional welfare<br />

committees. By way of example, at a<br />

port level Sydney has a seafarer welfare<br />

committee which covers Port Botany and<br />

Sydney Harbour and meets on a quarterly<br />

basis to consider seafarer issues and<br />

opportunities to improve their time in port.<br />

PROVIDING CARE FOR SEAFARERS IN SYDNEY<br />

In Sydney, the Mission to Seafarers provides the vast majority of the welfare<br />

services for visiting seafarers including:<br />

A free bus from Port Botany to the city and return (four trips a day);<br />

• The Seafarer Centre at Walsh Bay offering money changing, free Wi-fi, discounted<br />

souvenirs and personal shopping items, cable TV, amenities etc;<br />

Chaplains who visit ships to support those seafarers unable to obtain shore leave;<br />

Assistance as needed when there have been incidents on board;<br />

• A new initiative to provide services to the crew of the many passenger ships<br />

entering Sydney Harbour.<br />

If you would like to volunteer as a bus driver or in some other capacity please<br />

contact the Mission to Seafarers 02 9241 3009. Please contact us also if you are<br />

interested in making a donation.<br />

For more information on the Mission to Seafarers Sydney please visit our website<br />

or look us up on Facebook.<br />

Image supplied<br />

thedcn.com.au <strong>May</strong> <strong>2019</strong> 65


The grill<br />

Jackie Spiteri, manager environment and sustainability<br />

at the Port of Newcastle, talks about Wales, the value<br />

of the natural world, Lady Gaga and sporadic yoga.<br />

Where did you grow up?<br />

Brecon Beacons, Wales, United Kingdom<br />

When you were growing up what job<br />

did you want to do?<br />

I wanted to be an archaeologist. I grew<br />

up in an old house and would often find<br />

fragments of bones and china in the<br />

vegetable garden.<br />

Why did you come to Australia?<br />

My husband is Australian. We met whilst I<br />

was completing my MSc in the Caribbean.<br />

The plan was to do five years here and five<br />

years in Wales but I have now been here for<br />

over ten.<br />

How could use what you learnt in<br />

your training overseas in your role in<br />

Australia?<br />

I studied my undergraduate at Swansea<br />

Institute (South Wales) and my post<br />

graduate at Bangor School of Ocean<br />

Sciences (North Wales). There were some<br />

adjustments in coming to Australia to<br />

practise my profession. The heat is an<br />

obvious one. I actually found that the<br />

principles of environmental management<br />

in Wales were quite similar to Australia.<br />

However, I had to familiarise myself with<br />

the differing legislation and get up to speed<br />

with all of the native flora and fauna. It is<br />

a work in progress.<br />

What attracted you to your current job?<br />

Working in an environment that means<br />

something to so many people. The role is<br />

challenging and diverse. It is a large and<br />

dynamic port. I have been here for eight<br />

years and certainly don’t know everything.<br />

I still find myself learning new things and<br />

gaining new experiences every day.<br />

What do you do in your spare time/do<br />

you have any hobbies?<br />

These days I mostly spend my spare time<br />

with my family. I like to be outside. I also<br />

like to think I am quite creative so often<br />

have little projects going. Most recently I<br />

have made a table and we have bees, so I<br />

have been playing with the wax.<br />

Do you play sport or play an instrument?<br />

I sporadically go to yoga classes and will<br />

often ride or walk to work. Other than that<br />

no, although I would love to learn to sing.<br />

What are some of the challenges of<br />

working in an environment role?<br />

There are challenges in balancing the need<br />

to keep the business operating unhindered<br />

while also ensuring an active and<br />

sustainable environmental management<br />

plan that is suitable for the future. For<br />

me building positive relationships and<br />

trust with stakeholders, both internal and<br />

external, has been critical to achieving<br />

this balance. Being able to demonstrate the<br />

benefits of environmental improvements<br />

in terms of economic, social and<br />

environmental outcomes is imperative.<br />

Working for a business that recognises the<br />

importance of its social licence to operate<br />

and the need to develop a sustainable port<br />

certainly helps embed the right culture.<br />

Who are some of your role models?<br />

David Attenborough, for his passion and<br />

understanding of the natural world. Stefani<br />

Joanne Angelina Germanotta (Lady Gaga)<br />

for her ability and her achievements.<br />

What makes your work satisfying and<br />

rewarding?<br />

The ability to drive positive change and<br />

know that I am helping to create a resilient<br />

and sustainable port for the future<br />

What are your secrets for maintaining<br />

a good work/life balance?<br />

It’s hard at times. I have a five year old<br />

daughter, Florabella. Seeing how quickly<br />

she is growing up is a reminder to switch<br />

off and cherish time with my family. I am<br />

lucky to work for a company that supports<br />

a positive work-life balance.<br />

If you were to name a ship, what would<br />

it be and why?<br />

Santorini Moonshine – I used to sail with my<br />

dad growing up and these words make me<br />

think of him<br />

What is something you’ve done in your<br />

current role that you’re proud of?<br />

It is important to recognise that to<br />

affect global change, there needs to be a<br />

degree of consistency in the approach to<br />

environmental management. Recognising<br />

the importance of this has triggered Port<br />

of Newcastle to sign up to the ECOSLC<br />

(Sustainable Logistics Chain) Eco Ports<br />

initiative. Eco Ports is a global network<br />

of ports and terminals all committed to<br />

improving environmental management<br />

and sustainability outcomes through the<br />

adoption of an environmental management<br />

system framework developed specifically for<br />

the industry, it also provides a platform for<br />

best practice knowledge sharing.<br />

What advice would you give someone<br />

looking to get into your field?<br />

Be prepared to expand your knowledge<br />

base exponentially, try to gain as much<br />

workplace experience as you can during<br />

your studies and love what you do.<br />

Image supplied<br />

66 <strong>May</strong> <strong>2019</strong><br />

thedcn.com.au


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