DCN AUGUST Edition 2019

First published in 1891
August 2019
thedcn.com.au
The voice of Australian shipping & maritime logistics
Women leading the way
Increasing diversity in maritime & logistics
40 Focus on shipping
in Tasmania
44 Analysts tackle
global cybersecurity
58 State of play in
the Solomon Islands

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Contents
40
24
FEATURES
24
Gender diversity
Special feature on gender diversity in shipping and maritime logistics
40 Tasmania
Interview with TasPorts CEO Anthony Donald about his new role
44
58
Maritime cybersecurity
A range of analysts unlock solutions to global cybersecurity threats
Pacific potential
Report from the recent logistics workshop in the Solomon Islands
COLUMNS
44
58
18 MIAL
New guide for safer transit of
Great Barrier Reef & Torres Strait
19 Freight & Trade Alliance
Impacts of industrial action
20 International trade
G20 stalemate leaves hard
questions for Australia
22 Industry opinion
Our growing logistics challenge
52 Maritime law
IMO 2020 global sulphur cap in
the Australian context
54 Trade law
The ABF’s new initiative
56 Industry opinion
The case for using different
paints on shipping containers
60 Port sustainability
Looking beyond the port gate
62 Out & about
A look at what’s been happening
this month in the industry
64 Industry opinion
Using civilian mariners to
overcome Navy staff shortages
67 The grill
Scott Carson talks about the
mighty Cronulla Sharks
4 August 2019
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in Tasmania
First published in 1891
August 2019
thedcn.com.au
EDITORIAL
Dana Crampton
ISSUE NUMBER 1249 August 2019
The voice of Australian shipping & maritime logistics
From the editor
Women leading the way
40 Focus on shipping
Increasing diversity in maritime & logistics
44 Analysts tackle
global cybersecurity
58 State of play in
the Solomon Islands
DCN0819_Cover.in d 1 29-Jul-19 10:45:29 AM
This issue focusses on the key issue of gender diversity within
shipping and maritime logistics.
Diversity is critical if the industry wishes to sustain itself. There
are already predictions of significant skills shortages as soon as
2025, so action is essential.
With anywhere between 2% and 5% of female seafarers across
the world and a low percentage of women working in operational
roles onshore in the broader logistics sector, we have a lot of work
to do closing the gap.
Our conversations with women in the preparation of this issue
made it clear there needs to be greater awareness of maritime and
logistics career pathways and options for young people.
We need to look at laws that actually promote equality, those
that address discrimination, gender pay gaps, and that relate to
women’s priorities.
This year, Jillian Carson-Jackson and Jeanine Drummond have
been documenting the stories of women working in shipping and
logistics in support of the IMO’s 2019 theme of ‘Empowering
Women in the Maritime Community’.
These stories have shown women still experiencing significant
barriers, but also celebrate those tremendous examples of success.
We also speak with some of our female leaders about their
passion for the industry and what it takes to make it to the top.
We hope you find this issue both informative and inspiring.
COVER IMAGES from left to right
ROW 1
Alexis Cahalan
Amal Hassnaoui
Audrey Galbraith
Dani McGlashen
Jenn Williams
ROW 2
Bodo Ratolojanahary
Arlete Fastudo
Ester Nangolo
Alexandra Hagerty
Helen Coultas
ROW 3
Elana Nye
Megan White
Eliza Anning
Marika Calfas
Jeanine Drummond
David Sexton
Editor, Daily Cargo News
ROW 4
Jillian Carson-Jackson
Alison Cusack
Ruxanda Stefanita
My Therese Blank
Christine Chongwo
ROW 5
Ranee Crosby
Agata Jankowska
Teresa Lloyd
Kathy Martin
Sanjam Gupta
Publisher
Lloyd O’Harte lloyd.oharte@thedcn.com.au
Editor
David Sexton david.sexton@thedcn.com.au
Deputy Editor
Paula Wallace paula.wallace@thedcn.com.au
Creative Director Lee McLachlan
Production Manager
Grant Lopez grant.lopez@thedcn.com.au
Electronic Services Linda Saleh
Advertising Sales Director
Lindsay Reed lindsay.reed@thedcn.com.au
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Ian Ackerman; 365 Project
6 August 2019
thedcn.com.au

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News in brief
Full details at thedcn.com.au
Aussie waterfront hit by
strikes and redundancies
Strikes occurred at DP World Australia
container terminals around the country
as the Maritime Union (now part of the
CFMMEU) sought a better deal from the
stevedoring company.
The company also announced another 200
redundancies, 100 in Melbourne and Sydney,
in addition to 50 voluntary redundancies
already confirmed in Melbourne.
DPWA chief operating officer Andrew
Adam said in the absence of significant
negotiation progress during the past nine
months, the company had to address the
impact of volume losses.
“We have been very patient, but further
restructures of our workforce have become
necessary,” Mr Adam said.
“We have not taken the decision to
downsize lightly. The union have repeatedly
demonstrated a dogged unwillingness to
make any concessions on their claims.”
The industrial actions included a four-day
strike at West Swanson in Melbourne and a
two-day stoppage at Port Botany in Sydney
where 600 workers walked off the job.
The Melbourne stoppage included a large
rally outside the gates.
MUA assistant national secretary
Warren Smith said DPWA had refused to
meet to negotiate a resolution.
“Rather than bargain, management have
basically told workers to withdraw their
claims entirely and accept the company’s
offer or there will be no agreement,” Mr
Smith said.
“Most of the worker’s claims are not
cost claims, they are about protecting our
current conditions which were hard won
and fought for historically by a previous
generation. It’s not up to us to undo the
historical legacy of wharfies and we won’t.”
Mr Smith said workers wanted job saving
protections and commitments covering any
future decision to replace wharfies with
robots at these terminals.
Big box ships
visit Australia
Maersk Skarstind
Australia welcomed two of the largest capacity container
vessels to arrive in the country, making history twice in one
week. The Maersk Skarstind (IMO 9740457, flagged in Liberia) and
MSC Elma (IMO, flagged in Portugal) both arrived in early July.
Each vessel has a capacity of around 9400 TEU and are 300
metres long, 48 metres wide, with air draft of about 50 metres.
Originating from East Asia, Maersk Skarstind is run by AP
Moller Maersk on the Boomerang service. It has a total container
capacity of 9472 TEU and is also the first ‘twin island’ box ship
to arrive in Australia. Its special design is aimed at increasing
navigation visibility and cargo loading capacity for 9000+ TEU
ships by separating the wheelhouse and accommodation block
from the engine room and funnel area.
Meanwhile the MSC Elma, operated by Mediterranean
Shipping Company on the Australian Express Service from
Europe, has a total container capacity of 9372 TEU.
MSC Australia and New Zealand managing director Kevin
Clarke said, “MSC is responding to demand by deploying vessels
capable of shipping the increased export and import volumes to
and from all key international markets”.
New South Wales Ports chief executive, Marika Calfas, also
noted the trend towards larger ships.
“While most ships calling into Australia are around 4500 TEU,
container vessel sizes are increasing due to the steady increase
in the international container freight task and the consolidation
of freight by shipping lines,” Ms Calfas said.
Sheila Fitzgerald
8 August 2019
thedcn.com.au

Darren Lambourn
NEW CEO CONFIRMED
FOR DARWIN PORT
Gangways delivered to
Sydney cruise terminal
Specialist cargo vessel Helvetia delivered two
giant new gangways to Sydney’s Overseas
Passenger Terminal in Circular Quay.
Arriving fully assembled, the new
gangways were unloaded by crane and
installed at the Overseas Passenger
Terminal wharf.
The two huge gangways — seaport
passenger boarding bridges — have been
built to better support visits from cruise
ships including Quantum class vessels able
to carry more than 5000 passengers.
They are expected to improve the
terminal’s operational efficiency, increase
capacity and allow for quicker and
easier embarkation and debarkation for
passengers.
The Overseas Passenger Terminal reports
visits from more than 200 cruise ships a
year and is managed and operated by Port
Authority of New South Wales.
According to Port Authority of NSW,
1.6m cruise passengers transit through
Sydney’s two cruise terminals each year:
the Overseas Passenger Terminal and White
Bay Cruise Terminal.
A new chief executive has been
confirmed for Darwin Port, with
leaseholder Landbridge Australia
announcing the appointment of
Darren Lambourn.
He replaces Terry O’Connor who
announced his resignation earlier in
the year.
In a statement, Landbridge
noted Mr Lambourn had “a wealth
of experience” in supply chain
operations, most recently working
as general manager Bunbury for
Southern Ports Authority.
Mr Lambourn is to be responsible
for overall operations and
management of Darwin Port and
to report directly to Landbridge
Australia managing director Mike
Hughes.
Mr Hughes noted Mr Lambourn’s
extensive experience while also
paying tribute to his predecessor.
“On behalf of Landbridge, I would
like to thank Terry [O’Connor] for his
significant contribution to Landbridge
and to Darwin Port,” Mr Hughes said.
Image supplied; Pete Niesen; Darwin Port
AMSA announces North-East Shipping Management Plan
A completed review of the North-East Shipping
Management Plan - covering the Great Barrier Reef, Torres
Strait and Coral Sea regions - was released by the Australian
Maritime Safety Authority.
Commonwealth and Queensland government agencies
developed the NESMP together with industry and key
interest groups in 2014 to reduce the effects of large
commercial ships in these waters.
AMSA chief executive Mick Kinley said the waters off
the north east coast of Australia were some of the most
environmentally sensitive sea areas in the world.
“To date, the NESMP has formed the basis of a national
strategy to minimise the effects that shipping has on our
unique marine environment,” Mr Kinley said.
“So far, we have focussed on implementing measures to
enhance ship and navigation safety, reduce the impacts on
marine mammals, address biosecurity risks, expand special
protection measures for our most sensitive sea areas and
establishing a pollution response fund.”
Deputy Prime Minister Michael McCormack said the plan
would ensure vital international trade continued in the most
environmentally sustainable manner.
thedcn.com.au August 2019 9

NEWS IN BRIEF
Seafarers overlooked, says Paddy
Maritime Union national secretary Paddy Crumlin says people are in danger of
forgetting the crucial role of sailors in maintaining the Australian economy.
Speaking on the International Day of the Seafarer, Mr Crumlin also criticised the
federal government for its approach to the sector.
“Without seafarers, Australia’s economy and society would collapse overnight,”
Mr Crumlin said.
“These are the men and women who sacrifice time with family and friends
to move Australia’s exports, supplying the country with fuel and commodities,
and ensure the overwhelming majority of everyday products are available to the
community.
“All too often, the public and even politicians forget that this small band of
dedicated seafarers are responsible for keeping our island national operating.”
Mr Crumlin said the International Day of the Seafarer was also a call to action to
halt the continued loss of Australian flag vessels under Coalition governments.
Michael Harvey
Prepare for change in pilot transfers
Legislative change can be expected to impact that the hoist operation point is going
transfer procedures for pilots boarding big to occur.”
ships, an industry analyst believes.
Mr Vanderbeek said it was “only going
Ian Vanderbeek from Aviator Group said to be a matter of time” before legislation
suggested legislative intervention in this started to catch up in this area.
area was “the elephant in the room”.
“If someone comes off the pilot ladder
“The last two decades has really seen the and is injured or dies as a result and the
emergence of pilot transfer by hoist… widely coroner gets involved, there are going to be
used in Europe and South Africa,” he said. some pretty hard questions starting to be
“[Hoist transfer] is slowly becoming more asked,” he said.
prevalent and we are seeing more and more He was questioned by a representative
ports starting look at it and to adapt it.” of Australian Marine Pilots who indicated
Mr Vanderbeek said there had been he had not experienced transfers as seen
increased scrutiny around safety and used shown on video and also asked who of
some videos to demonstrate risky boarding ports, shipping lines or others would be
scenarios using ladders.
required to pay for a new transfer regime.
“By comparison helicopter transfers are “I don’t think it just applied to
somewhat more controlled… Transfer by helicopters, I think it is anything to do
helicopter always involves three pilots – the with port services or port infrastructure,”
helicopter pilot, the marine pilot and the Mr Vanderbeek responded.
air crew officer,” he said.
Mr Vanderbeek spoke at the Australian
“The difference with the helicopter is… Ports Business and Operations Conference
all three need to agree on what point it is in Townsville, organised by Ports Australia.
OUTGOING VRCA
CHIEF REFLECTS ON
TIME AT THE HELM
Outgoing Victorian Regional
Channels Authority chief executive
Michael Harvey says an increased
focus on safe navigation at Geelong is
a legacy of his time at the helm.
Mr Harvey, a former Rio Tinto
executive, confirmed his VRCA
retirement from July 31.
It marks a period of change for
the organisation, with long-serving
harbour master Captain Dilip
Abraham not having his contract
renewed in May.
“Having led a transformation of the
business for the last two-and-a-halfyears,
the time is right for me to step
down and for somebody to take the
organisation through the next stage
of its evolution,” Mr Harvey said.
Mr Harvey said key achievements
were an increased focus on safe
navigation, including bringing
marine controls in-house (they were
previously contracted out).
“The fact that we have looked at
how we can improve safe navigation
in the port waters that we manage
and the projects that we’ve initiated
to invest in new assets and new
technology to assist us in being able
to do that,” he said.
“A month ago we moved into new
offices in North Geelong overlooking
the channels and the marine
controllers for the Port of Geelong sit
right next to me in the office.”
Mr Harvey defended the move to
change harbour masters.
“The former harbour master’s
contract expired and I felt it the
time to get a fresh set of eyes on the
challenges that we face.”
Image supplied; Keith Michael Taylor
10 August 2019
thedcn.com.au

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NEWS IN BRIEF
Wharfie used as union “front man”, judge rules
A Federal Court Judge dismissed a challenge to an
enterprise agreement on Melbourne’s docks, ruling the
application was a “front man” for the MUA/CFMMEU.
The applicant was Richard Lunt, a former wharfie at Victoria
International Container Terminal, whose dismissal in late 2017
triggered large protests at Webb Dock.
The MUA had sought to overturn the VICT enterprise
agreement which it did not negotiate and regarded as
undermining workers’ conditions.
The Fair Work Commission and the Australian Maritime
Officers’ Union were also respondents.
After hearing evidence, Justice Darryl Rangiah dismissed
the case. “I am satisfied that Mr Lunt has not brought the
current proceeding for the predominant purpose of vindicating
his own legal rights,” Justice Rangiah said.
“Instead, Mr Lunt has brought the proceeding for the
predominant purpose of enabling the CFMMEU to obtain relief
which it was unlikely to obtain if the proceedings were brought
in its own name.
“In my opinion, that is an illegitimate and collateral purpose.”
The judge said the CFMMEU was the “true moving party”.
“It is the true moving party because it has used Mr Lunt to
seek the relief that it fears it would not obtain if it brought the
proceeding in its own name,” Justice Rangiah said.
“Through the device of the CFMMEU using Mr Lunt as a
‘front man’, VICT has been deprived of the opportunity to
defend the proceedings on the basis that the MUA acquiesced
in the approval that is now sought to be quashed.”
Justice Rangiah dismissed the case on the basis of it being
“an abuse of process”.
VICT has indicated it intends to seek costs.
Mr Lunt was represented in court by one of Australia’s
foremost barristers, Herman Borenstein QC, who acted for the
Maritime Union against Patrick during the 1998 dispute.
QUBE MAKES BID FOR CHALMERS
Maersk announces
“carbon-neutral”
transport trial
Shipping giant Maersk has announced it is beginning trials of a
“carbon neutral” fuel, said to be the first of its kind in the industry.
The fuel is being piloted with select Maersk customers, starting
with H&M Group as the first company to conduct a trial as part of
a shift towards carbon-neutral transport.
The biofuel is a blend of used cooking oil and heavy oil that has
been tested and validated in a trial done in collaboration with the
Dutch Sustainability Growth Coalition and Shell. It is certified as
a sustainable fuel by the International Sustainability & Carbon
Certification.
“The biofuel trial on board Mette Maersk has proven that
decarbonised solutions for shipping can already be utilised today,
both technically and operationally,” Maersk chief operations officer
Søren Toft said.
“While it is not yet an absolutely final solution it is certainly
part of the solution and it can serve as a transition solution to
reduce CO 2
emissions today.”
QUBE announced a takeover bid for fellow logistics
business, Chalmers Limited, a move already supported
publicly by the latter’s chairman.
The proposal valued Chalmers shares at about $60m.
Qube managing director Maurice James said the offer
provided “an opportunity for Chalmers shareholders to
obtain liquidity for their shares at an attractive premium”.
“The structure of the offer enables Chalmers
shareholders to elect to cash out their Chalmers shares or,
by electing the scrip option, to share in the growth of the
Qube Group,” Mr James said.
Chalmers’ chairman, Graham Mulligan said the offer
represented attractive value for Chalmers shareholders.
“The directors of Chalmers intend to unanimously
recommend that Chalmers shareholders accept [the
Qube] off-market takeover offer for all the ordinary shares
in Chalmers, in the absence of a superior proposal,” Mr
Mulligan said.
According to the Qube statement to the ASX, the
Chalmers transport and logistics operations, coupled with
the company’s property assets (in Melbourne and Brisbane),
are complementary to those of Qube.
The offer was conditional upon Qube acquiring a relevant
interest in 90% of Chalmers shares.
Maurice James
Allie Caulfield; Qube
12 August 2019
thedcn.com.au

NEWS IN BRIEF
QLD transport minister pushes for coastal shipping reform
A state parliamentary inquiry is considering reform for coastal shipping
in the Queensland context, transport minister Mark Bailey says.
Speaking at the Australian Potts Business and Operations
Conference in Townsville, Mr Bailey also urged the federal
government to step up.
“Queensland ports play a significant role in the distribution
of freight domestically with our intra and interstate sea freight,
typically accounting for about 40% of national coastal shipping
volumes,” the minister told delegates.
“While the shipping of bauxite from Weipa to Gladstone
comprises most of the state’s intrastate shipping task, it is also
important to recognise the role that ports and coastal shipping plays.
“They ensure that Queensland’s most remote communities up in
Cape York and across the Torres Strait have access to the essentials.”
Mr Bailey said the state parliamentary inquiry was
examining “a sustainable and intrastate shipping industry in
Queensland”.
“While we consider the recommendations of the inquiry we
also need leadership from the Australian government to ensure
that the Australian shipping industry and coastal shipping have a
sustainable future,” he said.
“Maintaining the sustainability of our supply chains, serving the
ports from land and sea remains a continuous challenge.”
Mr Bailey noted the value of coastal shipping in keeping supply
chains open, with the Flinders and Mt Isa Highways cut earlier in
the year in “an unprecedented major flooding event”.
The minister also spoke about a “strategic blueprint” for the
state’s north-west minerals province.
First ro-ro for Port Hedland
Port Hedland has welcomed its first conventional roll-on/roll-off vessel, giving
industry a more cost-effective way of delivering cargo to the region.
The 180-metre Blue Ridge Highway paid a short call in late June.
The visit followed 18 months of planning by Pilbara Ports Authority, vessel
owners K-Line and cargo receivers Sumitomo. The vessel began its journey in Japan
and stopped at Fremantle on its way to Port Hedland.
The ship’s cargo of offshore piping had been pre-assembled onto 22 separate
trailers.
The ro-ro vessel’s open vehicle deck design allowed the cargo to be unloaded in
about 90 minutes.
Cranes normally would be used to unload a non-ro-ro ship, which can take up to
12 hours.
Pilbara Ports Authority general manager operations John Finch said the aim was
to make ro-ro visits to the Pilbara a regular occurrence.
“The visit was a success and Pilbara Ports Authority is working with all
proponents to set up regular ro-ro calls to Port Hedland,” Mr Finch said.
“This would represent a significant cost and time saving for industry. Not only
does ro-ro vessel design make unloading easier and quicker, industry around Port
Hedland can get access to cargo straight from the port, rather than trucking it in
from elsewhere.”
To facilitate more visits from trade vessels such as the Blue Ridge Highway,
Pilbara Ports Authority is building new infrastructure to meet the Commonwealth
government’s new biosecurity and First Point of Entry Standards that come into
force on July 1, 2019.
The new infrastructure will allow vessels that come into Port Hedland to have
their cargoes inspected or treated if required.
Without this infrastructure cargo would need to be shipped to Fremantle.
Similar infrastructure is being built at Dampier and PPA is exploring berth
upgrades to enhance opportunities for future ro-ro calls across the Pilbara.
Blue Ridge Highway
1-STOP JOINS MIZZEN
CONTAINER PROJECT
WITH UTS
DYNAMIC pricing and rates
provider Mizzen Group has
announced 1-Stop Connections has
joined its Container Visibility Project.
The aim of the project, being
delivered with the support of
University of Technology Sydney,
is improved visibility in container
shipping supply chain operations.
Mizzen Group managing director
Jon Charles described 1-Stop as
“a supply chain innovator” whose
applications had “for many years
been optimising operations within
the port community”.
“With them joining our project, we
are able to add new capabilities and
turn data into useful insights for the
industry as a whole,” Mr Charles said.
Mizzen partnered with the UTS
Department of Computer Science and
Centre for Artificial Intelligence under
the federal government APR.Intern
grant scheme.
The work was led by Associate
Professor Farookh Khadeer Hussain
and PhD candidate Ayesha Ubaid.
Associate Professor Farookh
Khadeer Hussain said they modelled
the relationship between weekly
container volumes, shipping
capacity and prices in the Asia-
Australia trade lane.
From this they used machine
learning to build a price prediction
model. 1-Stop general manager of
strategy and business development,
Jeremy Chee, said joining innovative
projects helped discover what could
be achieved with data.
14 August 2019
thedcn.com.au

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NEWS IN BRIEF
PILBARA ANNUAL SHIPPING
FIGURES REMAIN STRONG
Andrew Forrest and Elizabeth Gaines
FMG opens tug harbour
at Port Hedland
Aussie entrepreneur Andrew ‘Twiggy’ Forrest has unveiled Fortescue
Metals Group’s new tug and towage facility in Port Hedland, a
harbour named after his mum.
Judith Street Harbour at Herb Elliott Port was officially opened
by Mr Forrest, together with FMG chief executive Elizabeth Gaines
along with Port Hedland mayor, Camilo Blanco and members of
the Port Hedland community.
Fortescue has procured and built six tugs and leased a further
three tugs, including six rotor tugs that were built by Damen
Shipyards in Vietnam.
“As Australia’s economic and industrial gateway to Asia, the Port
of Port Hedland is the largest bulk export port in the world,” Mr
Forrest said.
“The strategic decisions made by the board to build our fleet of
ore carriers and Fortescue owned and operated towage capability
mark the critical completion of this part of Fortescue’s journey.”
Mr Forrest said the final step in the process would be the naming
of Judith Street Harbour.
Chief executive Elizabeth Gaines said, “The towage fleet
represents the final element in our supply chain, with our innovative
new tug fleet able to provide safe and reliable towage services and
additional towage capacity for all Port Hedland users”. said.
Pilbara Ports Authority has delivered a total annual
throughput of 697.2 million tonnes for the 2018/19
financial year. This result was a less than 1% change
(decrease of 2.06Mt) from last year’s record annual
throughput.
In June 2019, Pilbara Ports Authority achieved a total
monthly throughput of 64m tonnes, a 1% increase on the
same month in 2018.
Iron ore throughput for June 2019 increased 2% from
June 2018, to 60.2Mt.
Total iron ore throughput for 2018/19 was 647.8Mt, a 1%
decrease on 2017/18.
Port Hedland achieved a total annual throughput of
513.3Mt, a decrease of 1% from the previous year.
Annual iron ore exports totalled 506.6Mt, less than a 1%
decrease (2.3Mt) from 2017/18.
The June monthly throughput at the Port of Port
Hedland was 49.2Mt, of which 48.9Mt was iron ore
exports. The monthly throughput was a 2% increase from
June 2018. Iron ore exports for June increased by 3% from
June 2018.
The Port of Dampier delivered a total annual throughput
172.9Mt, which was a 2% decrease from the previous year.
Annual iron ore exports totalled 141.2Mt, which was a
3% decrease from last financial year.
INDUSTRY EVENTS
2019 EVENT
I6 Aug Port Outlook 2019, Melbourne http://vta.com.au/all-events
30 Aug SCLAA Women in Logistics 2019, Hawthorn Victoria https://sclaa.com.au/events
7 Sep 30th Anniversary Australian Freight Industry Awards, Melbourne http://vta.com.au/all-events
10-13 Sep Australasian Coasts & Ports 2019, Hobart www.coastsandports2019.com.au
8-10 Oct Pacific 2019 International Maritime Conference, Sydney www.pacificexpo.com.au
28 Oct–1 Nov AMPI Pilotage & Ports Logistics Conference, Sydney www.ampi.org.au/AMPI2019
14 Nov 2019 Australian Shipping & Maritime Industry Awards, Melbourne www.dcnawards.com.au
22 Nov Australian Supply Chain & Logistics Awards, Sydney https://sclaa.com.au/events/
To notify DCN of events please email us at editorial@thedcn.com.au
FMG; Pilbarra Ports Authority
16 August 2019
thedcn.com.au

SEAROAD
Home-grown
expertise
No-one understands the island state’s
transport needs like majority Tasmanian
owned SeaRoad Group
SeaRoad is a privately owned Australian integrated
group specialising in Bass Strait shipping and logistics.
SeaRoad operates from multiple facilities across
Tasmania and Victoria including the Company’s
shipping terminals, warehouses and distribution
locations.
SeaRoad’s prime services characteristics are its
purpose-built RoRo vessels and ideally-located
logistics infrastructure, adjacent to our berths in
Devonport and Melbourne.
SeaRoad’s service offering is ideally suited to meet
the markets along the East Coast of mainland
Australia.
SEAROAD SHIPPING
• SeaRoad’s shipping service is between
Melbourne and Devonport with vessels, Searoad
Mersey II and Searoad Tamar
• SeaRoad provides 12 overnight voyages a week
Devonport-Melbourne-Devonport
• The new Searoad Mersey II has substantially
increased shipping capacity on Bass Strait to the
benefit of Tasmanian shippers
• In just 18 months Searoad Mersey II has made
479 Bass Strait crossings, carrying 24,000 semitrailers,
107,000 containers, 17,000 cars and other
small vehicles, plus livestock, project and myriad
other cargoes for Tasmanian exporters and
importers
• New vessel due in 2020/21 to complement
Searoad Mersey II
SEAROAD LOGISTICS
• SeaRoad’s logistics services deliver your end-toend
freight requirements to and from Tasmania
• SeaRoad Logistics operate out of 5 key facilities
across Tasmania and Victoria [including wharf
sites, warehousing and distribution locations and
Head Office]
• Local cartage, warehousing, container packing
and unpacking, interstate line-haul, freight
terminals, accredited bond stores in Devonport
and Hobart
• Modern, high-quality trucks, trailers, cargohandling
equipment and advanced IT systems
“SeaRoad has a proven record in providing quality,
customer-focused services through its shipping, freight
forwarding and logistics operations”
DEDICATED SHIPPING
TERMINALS
SeaRoad have dedicated shipping terminals in Devonport and Melbourne with
adjacent warehousing and transport logistics services
EAST DEVONPORT Berth 2 Wright Street | PORT MELBOURNE Berth 2A Webb Dock East
Shipping TAS 03 6420 4411 Shipping VIC 03 9681 9466 Logistics 1300 768 111
www.searoad.net
Keeping Tasmania connected

NAVIGATION
Emergency towage vessel
Coral Knight off Pipon Islets,
looking back towards
Princess Charlotte Bay
Transiting the reef just got safer
A new guide is expected to make easier navigating sensitive areas around
the Great Barrier Reef and the Torres Strait writes MIAL’s Alison Saunders
THE GREAT BARRIER REEF IS THE
More than 40 photo submissions were
Vessel Traffic Service, Great Barrier Reef
largest coral reef system in the world. It is
judged in Brisbane by a panel of industry
Marine Park Authority, Maritime Safety
composed of almost 3000 individual reefs
experts. Photographers put forward their
Queensland, OMC International and
and 900 islands that extend more than
most captivating images that truly reflected
Sea Swift.
2575 kilometres. Consequently, passing
the region.
The IMO designated the Great
through these areas can be a cause of
Captain Luke Hosking, master of the
Barrier Reef including the adjoining
concern for the mariner, particularly if the
Coral Knight, was awarded first prize with
area encompassing the Torres Strait up
bridge team is unfamiliar with the region.
his photo of the MV Coral Knight - AMSA’s
to the border with Papua New Guinea
Although the Torres Strait and Great Barrier
dedicated emergency towage vessel - taken
a Particularly Sensitive Sea Area in
Reef lie within the state of Queensland,
off Pipon Islets, looking back towards
1990, which led to the introduction of
regulation of activities within this area is
Princess Charlotte Bay.
compulsory pilotage for the following year.
covered by state and federal legislation.
Although the photo was taken by
Mr Meyjes said source information was
It is for this reason that Witherby
Captain Hosking, entering the competition
not always easy to locate and interpret,
Publishing Group has just released the
was a collaborative effort with AMS
particularly if the ship had not been able
2019 Passage Planning Guide that focuses
Group’s Warren Anderson and Captain
to obtain all the necessary documentation
on the Great Barrier Reef and Torres Strait.
Michael Barton from Teekay Shipping
prior to departing the last port.
All the data contained in the PPG has
submitting the winning entry. AMSA also
“The Witherby Passage Planning Guide
been collated and validated by Australian
approved the photo’s publication.
contains the information the bridge team
Reef Pilots, drawing on their considerable
The photo will be featured on the front
will need to properly prepare for the ship’s
experience in all areas of the Marine Park.
cover of the Witherby 2019 Passage Planning
transit through the area,” he says.
Simon Meyjes, chief executive of
Guide for Great Barrier Reef and Torres
The area includes extensive areas of
Australian Reef Pilots says, “Australian
Strait and also the August edition of MIAL
compulsory pilotage where an AMSA
Reef Pilots strongly recommend that this
industry magazine, MAX. As well as having
licensed pilot must be on board at all times.
guide is used, not only as part of the ship’s
the winning photo on the front cover of
MIAL chief executive Teresa Lloyd said
pre-entry procedures, but also as a tool
these publications, Captain Hosking also
the 2019 edition of the guide book had
for familiarising and refreshing the bridge
won various copies of other Witherby
been completely revised to incorporate the
team each time the ship is planning a pass
Publishing publications which he kindly
latest guidance and practical advice for
through the area”.
donated to a training college.
ships transiting the region.
“It is an essential resource for any crew
INCREDIBLE IMAGE
WORKING TOGETHER
navigating the Great Barrier Reef and
MIAL has been involved in the development
Preparing the Witherby 2019 Passage
Torres Strait,” Ms Lloyd says.
of this latest edition by participating
in the preparatory workshops and also
running a photo competition inviting
people to submit entries that best depicted
‘navigating safely through the Great Barrier
Reef and Torres Strait’.
Planning Guide for the Great Barrier Reef and
Torres Strait was a team effort involving
Witherby Publishing, MIAL, Australian
Reef Pilots, Australian Hydrographic
Service, AMSA, Australian Transport Safety
Bureau, Great Barrier Reef and Torres Strait
“MIAL also congratulates Captain Luke
Hosking on his winning entry.”
More information on coastal pilotage is
available in Marine Order 54 (Coastal pilotage)
or at the AMSA website: www.amsa.gov.au
Captain Luke Hosking
18 August 2019
thedcn.com.au

INDUSTRY OPINION
Impacts of industrial action
on Australia’s shippers
With stevedoring companies having to sort out enterprise agreements during the next
12 months, there are issues ahead on the waterfront writes Travis Brooks-Garrett
FTA
WHILE THE CONSTRUCTION
Forestry Maritime Mining and Energy
Union has been vocal in the mainstream
media downplaying the recent stoppages
at DP World Australia, describing them
as “small delays”, the reality is that these
events have significant direct and indirect
impacts on Australia’s shippers.
The 96-hour stoppage at DPWA Swanson
Dock in July was particularly severe,
with six vessels affected by the strike on
import, as well as holding back export
receivals for six others. Some containers
from previous vessels were also inside the
affected terminal at the time of the strike
and were stranded there for the duration of
the 96-hour stoppage. We understand that
some of these containers included highvalue
and time-sensitive cargoes.
Costs to industry included:
• extra staging costs, where export
containers were held back from delivery
to the terminal;
• reefer containers being held on power
awaiting export;
• higher costs for transport, where
transport operators had to work Sunday
afternoon and Sunday night to clear
backlogs, incurring penalty rates which
were passed onto customers;
• truck delays and truck waiting times
in returning empty containers, when
containers couldn’t be de-hired at the
affected terminal; and
• the disruption that led to some
importers and exporters being hit with
shipping line detention charges for not
returning containers.
In addition to logistics costs, these
types of delays present a real and serious
risk of loss of contracts or contract
penalties arising from delayed sailings
and the potential for exporters to miss
transhipments. These types of delays raise
serious questions about our reliability as a
trade partner at a time when Australia is
competing in a global marketplace.
IS THERE MORE TO COME?
At the time of writing, in addition to
DPWA’s challenges, the Hutchison Ports
Enterprise Agreement has also expired, and
they have experienced their own industrial
action (“go slow”, stoppages, etc.) This
means that in Sydney two out of the three
container terminals are affected by union
disruption. To make matters worse, the
Patrick Stevedores Enterprise Agreement
also expires next year (June 30, 2020) with
industry praying that similar escalations
can be avoided.
MITIGATING FACTORS
While shippers are counting the costs,
I’m reminded by the ‘class of 1998’
(when stoppages at Patrick lasted a whole
month) that industry has seen a lot worse.
Thankfully, this time around, there are
mitigating factors.
DPWA did a commendable job in
minimising the impacts on industry,
with Patrick stevedores and the Victoria
International Container Terminal assisting
DPWA in working many of the impacted
vessels for import discharge and export.
The situation also may have been helped
by the fact industry has seen weaker than
expected import and export volumes
(particularly grain and cotton) lately,
putting less pressure on the logistics chain.
SHIP LINES MUST COME TO THE PARTY
While the terminals previously have made
efforts to reduce the impact of industrial
action on Australian shippers, by extending
import availability times, waiving storage
and sub-contracting vessels, shipping lines
also need to be sympathetic in considering
financial relief at the end of the container
logistics chain.
In an industry notice in early July,
Freight & Trade Alliance, the Australian
Peak Shippers Association and the
Container Transport Alliance of Australia
jointly called on shipping lines to extend
Travis Brooks-Garrett, director, Freight & Trade
Alliance
free time on container detention for all
containers affected by the escalating
dispute and to waive associated charges.
MOVING FORWARD
As we all know, Australia’s container
terminals are the gateways of our economy.
More than 90% of our international trade
by volume is carried via sea freight. So,
when Melbourne, our largest port, is hit
with a four-day stoppage, and when two of
the three container terminals in Sydney are
affected by industrial action, both sides of
politics must acknowledge the seriousness
of the situation we find ourselves in. While
we acknowledge the union’s right to protected
industrial action, the CFMMEU cannot
underestimate the impact of these stoppages
on industry and the wider economy.
FTA and APSA will continue to work
with terminal operators and shipping lines
to minimise the impacts on shippers and
other affected parties.
Operational updates will be made available
at www.ftalliance.com.au
thedcn.com.au August 2019 19

INTERNATIONAL TRADE
G20 stalemate leaves hard
questions for Australia
Giovanni Di Lieto, lecturer in the Faculty of Business and Economics at Monash
University examines some of the trade tensions
FOLLOWING THE UNDERWHELMING
trade deficit has grown to a 10-year high.
THE EMERGING ECONOMIC ORDER
outcomes of the G20 Summit, there’s a
Current US census data shows the total
Trump’s trade doctrine is on course
growing sense of urgency for Australia to
deficit in goods and services reached
to reshuffle the foundations of the
spell out a new trade strategy. Canberra
$627bn in 2018 (and growing in 2019),
international economic order. In the
needs to gauge the consequences of
the highest level since 2008.
American context, countering the trade
reversing the US trade deficit on the
Trump has made reducing the trade
deficit may bring short-term relief to the
international economic order, and how
deficit, especially of goods with China, a
industrial system. At the international
to adjust to the US foreign policy curbs
major goal of his administration. However,
monetary level, however, it can create
on China’s incursions in the Australian
current reports show a record-breaking
havoc. It’s the US response to the trade
sphere of influence.
$419bn trade gap in 2018 for the US in
deficit rather than the growing deficit itself
goods, not much slowing in 2019 despite
that exposes the fault lines of the American
KEY QUESTION
the tariffs imposed on Chinese products.
global hegemony in the 21st century. As
Ultimately, it’s a matter of asking: How
The easy explanation for the deficit is
a matter of fact, it’s precisely the massive
is Australia going to cope with the
that Trump’s economic policy isn’t working
account deficit that pumps US dollars into
limited agency it has on the emerging
international trade system? Monitoring
trends in the US trade balance is key to
cast light on the path ahead for Australia.
Under Donald Trump, the United States’
as intended, although it may be too soon to
say. The growing deficit may be mostly due
to increased public spending and lower taxes
combined with expedient trade transactions
rushed to avoid newly imposed tariffs.
the global financial system.
Strangling this monetary flow with
policies that encourage exports while
discouraging imports puts at risk the role
of the US dollar as the chief international
Palácio do Planalto
20 August 2019
thedcn.com.au

trading instrument. This could strengthen
the resolve of non-US-aligned trade
powerhouses to build shadow reserve
portfolios with other currencies. It won’t
be long until these unorthodox accounts
can gradually emerge in the open capital
markets, luring minnow countries with
lower financial costs and more widespread
trading availability.
CONSEQUENCES OF REVERSING US
TRADE DEFICIT
In the short term, a US trade surplus
would quickly repatriate dollars, and thus
make them scarce and over-valued in the
global markets. This is due to the fact that
countries that currently enjoy significant
trade surpluses with the US would have
an incentive to depreciate their currencies
to offset most of their export losses. The
manufacturing countries would then
cover the remaining export shortfall
by pushing up prices, thus triggering a
global credit crunch.
In the medium term, this situation will
make US dollars not only scarce in the
global markets, but also too expensive to
buy for trading and investment purposes.
Hence, over the long term, reversing the
US trade deficit would undermine the US
monetary hegemony, the true pillar of
American influence over the world.
RISE OF CHINA
In historical terms, Trump’s election as US
president in 2016 set in motion a further
departure from the liberal economic order
created in the post-WWII period. Within
the American bloc, this order thrived on
the tacit exchange of security for market
access. With the end of the Cold War and
the emergence of China’s economic power,
the strategic space of liberal democratic
countries such as Australia is now in a
critically evolutionary phase.
The geopolitical hierarchy is splitting
between the US-led security order and the
global trading system that’s challenged
by China’s takeover. Naturally, this is
generating competition between the US
and China, with the liberal middle powers
such as Australia that strive to deal with
China for economic gains without giving
away the American security umbrella on
one hand, and destabilising actors at their
geographical and moral borders at the other
– chiefly Russia, Islamic terrorism, and
the various populist/nationalistic forces.
Trump’s unilateralist foreign policy may
put an abrupt end to this dynamic. On the
other hand, China may soon gradually use
its trade and investment might to push
weaker trading partners away from their
strong bilateral security ties with the US in
exchange for tighter economic cooperation.
US FOREIGN POLICY
This also explains the change of
geographical language in the US foreign
policy, which now talks about the “Indo-
Pacific” region instead of the previously
used “Asia-Pacific”. In other words, this new
language signals the strategic move from
a notionally multipolar Asia-Pacific region
to the US-led Indo-Pacific rim. Trump’s
strategy to contain China’s rise as a global
superpower shows that the securitisation of
Indo-Pacific maritime trade and investment
is meant to offset the US geopolitical retreat
from the Asian core inland.
China may soon gradually use its trade
and investment might to push weaker
trading partners away from their strong
bilateral security ties with the US in
exchange for tighter economic cooperation.
In particular, this explains why the US
administration is ramping up pressure
on India, Japan and Australia to establish
a trade and security cordon around
China’s geopolitical advancement in Asia.
Weaponising trade is the key feature of the
American “surround-and-enforce China”
strategy, so to speak.
Trump’s surround-and-enforce move
supersedes and somehow sublimates his
predecessor Barack Obama’s hedge-andengage
approach, also known as “pivot to
Asia”. To escape the perceived Thucydides
Trap, the US is thus accelerating toward
an Asian balance of power within a new
bipolar order destined to open unsavoury
scenarios for Australia.
HARD QUESTIONS FOR AUSTRALIA
This emerging condition requires a
geopolitical paradigm shift under political,
security and economic perspectives. The
impact of a US-China dual hierarchy on
the world order raises urgent questions.
Strangling this monetary flow with policies that
encourage exports while discouraging imports
puts at risk the role of the US dollar.
First and foremost: does the economic
liberal order ultimately depend on a single
hegemon? Can the US remain a credible
security provider for Australia even under
conditions of geo-economic decline? How
far will China seek to push Australia into
loosening its security ties with the US as it
grows more powerful? If forced to make a
choice, will Australia side with its security
patron or with its largest trade partner?
Can China further develop on the global
stage as a balancing force against populist
and other destabilising actors?
To develop a coherent strategic
outlook that secures stable ground for
prosperity, Australia needs to resist the
temptation to hide these questions in the
too-hard basket.
This article was first published on the Monash
Lens website.
thedcn.com.au August 2019 21

INDUSTRY OPINION
The growing logistics challenge
Australia needs to work smarter if it is to manage the freight task required
of a larger population, says Patrick Ingenegeren
AUSTRALIA IS A RELATIVELY
growth in other freight vehicles in recent
young country and the size of Europe or
years. Plus a growth in e-commerce means
North America. It is unlikely that we will
consumers expect greater levels of service
catch up with these other continents in
and faster delivery of products.
terms of servicing the population with a
Consumer expectations are already
functioning and flexible supply chain until
having a major impact and Australia Post
2050. Due to the sheer size of Australia
saw a 5.6% rise in domestic parcels in
and more than 50% of the population
2016-17 and it has become increasingly
being in Melbourne, Sydney and Brisbane,
difficult to make deliveries in the larger
our logistics are obviously a bit more
metro areas, especially the CBD.
complicated than other countries. It’s
If we wish to grow our cities and
essential that we work smarter and not try
ensure their continuing functionality and
to invent the wheel again and again.
amenity, we must implement smart and
effective solutions which can support the
DEMOGRAPHIC CHALLENGES
increasing freight tasks.
As the baby boomers are tilting out of the
workforce and into retirement this in turn
LESSONS FROM EUROPE
prompts a high demand for more workers.
These challenges are not unique. Most
Our own ‘king of demographics’ Bernard
Salt, estimated this gap a couple of years
cities in The Netherlands like Amsterdam,
Arnhem and Zutphen originating from
Patrick Ingenegeren, independent director,
Supply Chain & Logistics Association of Australia
ago at about 200,000 skilled workers per
the Middle Ages and were all established
annum. These workers will not only have
between the 13th and the 16th century.
space and delivery docks in the CBD but
to take over from the retirees but also
So they are very old beautiful cities with
our CBD’s are not very freight friendly.
support the elderly with healthcare, social
typical small cobble stone streets, with
Apartment blocks and retail precincts,
assistance, nursing homes, etc. In other
stunning but dense housing and some
particularly in the inner city, are often
words going forward healthcare will be a
are on canals which today is of course a
built without sufficient attention to the
big and important pillar in our economy.
nightmare for deliveries. More often than
needs of freight deliveries and waste
What I am getting at is that this will not
not streets are blocked by various trucks
collection. There is a growing shortage of
only put further pressure on the supply
making deliveries to shops, individuals
on-street loading zones for freight vehicles.
chain in healthcare but also on other
and other businesses making the inner city
This results in freight vehicles wasting
supply chains like electronics, whitegoods,
unliveable and unsafe.
time and money circling city and suburban
building supplies, groceries, entertainment
Policymakers realised that the last mile
retail precincts to find a suitable parking
and general e-commerce due to the
delivery had to change so several freight
location close to the delivery destination.
required population growth.
consolidation centres were established on
Servicing almost half the Australian
the fringe of some of the cities where all
FINAL THOUGHTS
population (around 11m people) in three
freight is cross docked and consolidated
So for Australia the use of freight
metropolitan areas requires a smart and
onto smaller electrical vehicles which in
consolidation centres to improve access to
effective solution to deliver products
turn deliver the freight into the city centre.
CBD for deliveries is vital.
from business to business and business to
The good thing is we don’t have to
consumer. Because of the distance between
CLOSER TO HOME
reinvent the wheel as it already has been
the cities each city need to develop or adapt
In Australia, many parcel carriers have
done and successfully implemented
to an optimised delivery solution to avoid
already been forced to transfer freight to
overseas. Let’s learn from others,
major congestion.
smaller vehicles to access our CBD’s not
improve it so we can deliver the goods
State governments already identified
to mention juggling the limited on-street
as promised, on time, in full and
significant changes reflected in vehicle
loading zones (if available).
undamaged to all Australians and of
registration data, where the growth in LCV
or ‘small white vans’ has outstripped the
Yes the technologies exist now to better
co-ordinate and allocate limited road
course those extra required 200,000
skilled workers per annum.
SCLAA
22 August 2019
thedcn.com.au

THE 24TH ANNUAL AUSTRALIAN
Shipping &
Maritime
INDUSTRY AWARDS
Join us in the heart of Melbourne for the 24th annual
awards and be among the who’s who of the industry for
a night of excellent entertainment and networking.
Have your say, nominate for an award now.
SAVE THE DAT E !
Thursday 14 November 2019
Plaza Ballroom, Melbourne
Contact Lloyd O’Harte,
on 0414 272 574 or email
lloyd.oharte@thedcn.com.au
dcnawards.com.au
MAJOR HOST SPONSOR
SPONSORS
The Merchant Navy
War Memorial Fund Ltd
thedcn.com.au July 2019 23
( MNWMF ) www.mnwmf.com

GENDER DIVERSITY
Daily Cargo News’ Paula Wallace
speaks with women who are blazing
trails within the maritime, logistics
and supply chain sectors about how
they came into their current roles,
the challenges and the victories
Hermione Parsons,
director, Centre for Supply Chain
& Logistics
Sue Tomic,
general manager-logistics,
DP World Logistics Australia
My Therese Blank,
Oceania customer service director,
AP Moller-Maersk
Teresa Lloyd,
CEO, Maritime Industry
Australia Limited
Images supplied
24 August 2019
thedcn.com.au

Masterfile
Ranee Crosby,
CEO, Port of Townsville
Alison Cusack,
principal, Cusack & Co and
WISTA Australia president
Eliza Anning,
general manager corporate
services, LINX Cargo Care Group
Audrey Galbraith,
executive general manager
operations, Royal Wolf
thedcn.com.au August 2019 25

GENDER DIVERSITY
It’s a sad indictment of the shipping and maritime logistics
sector that we don’t actually know how women are represented
in the different parts of the industry. But we know anecdotally
and from our own associations that women are starting to
infiltrate previously male domains.
The figure commonly quoted is 2% for the share of on-water
operational roles held by women and less than 10% in logistics
management positions. The Centre for Supply Chain & Logistics,
through its Wayfinder program, hopes to build a bigger picture. It
expects to receive funding soon to move into the research stage of
its program to examine the causes of female under-representation
in the supply chain.
In the meantime, Wayfinder has worked with industry
sponsors this year to develop and deliver training modules
that cater for a general audience and also those women already
employed within sponsor companies who want to learn more
about changing their roles.
The biggest challenge can be that
shipping is still seen as a bloke’s world.
Alison Cusack, Cusack & Co/WISTA
“I believe that over the last ten years a lot of women have come
into the industry but in the services sector,” says Dr Hermione
Parsons, director of the CSCL.
“I’ve done this before at a luncheon of say 400 people, where I get
everyone from the sector to put their hand up and then how many
work in recruitment HR, finance etc… and finally you get down to
operations and out of 400 there might be six or eight women.”
There needs to be a shift in attitudes, according to lawyer and
president of WISTA in Australia, Alison Cusack.
“There is currently a shortage of seafarers globally. The
International Transport Workers’ Federation predicts that if there
is no course correction, by 2025 we are looking at a workforce
shortage of 147,500,” she says.
“If we are shutting out up to 50% of the potential workforce,
we’re not going to solve this issue.”
To change the gender balance, young people also need to know
there are opportunities to work in the maritime and supply chain
sectors. This is why Wayfinder is also working at the community
and education provider levels to promote supply chain and
logistics careers.
Given the lack of awareness of shipping and logistics careers,
particularly among girls and women, many of the women DCN
spoke to either entered the industry by fortunate “accident” or have
been part of specific programs to attract young talent or women
into the industry.
“Initially I fell into it by accident really,” says Ranee Crosby Port
of Townsville CEO.
“I was a casual receptionist in engineering, saving money to move
away for university. I had many great bosses and role models who
gave their time to me and helped shape my career choices,” she says.
“I had the opportunity to see many great ports around Australia
and the world, and was in awe of the role they play in shaping
economies, regions and cities. I have been hooked ever since.”
In 2003, Ms Crosby joined the Townsville Port management
team at just 25 years of age, the youngest female to enter the
executive, and in 2014 was appointed CEO.
At the Australian Shipping and Maritime Industry Awards in
Sydney last year, the Port of Townsville won the award for gender
diversity.
“We are very fortunate,” Ms Crosby says, referring to the
port’s environmental technician team. “We have seven female
environmental scientists, which is terrific.
“We have a female chair leading our board, a female CEO, and
eight females in our senior management team,” she says, adding
the port’s female representation in executive and management
areas is just shy of 50%.
“But overall we have more work to do,” Ms Crosby says. “Around
30% of our workforce is female, 70% male, which is at the upper
range of the industry average globally. This is largely due to maledominated
areas of the industry such as marine pilots, trades and
security personnel.”
Sue Tomic, general manager-logistics at DP World Logistics
Australia also came into the industry purely by accident around 10
years ago in the capacity of interim CFO at a large intermodal in
Sydney’s St Peters.
“I was engaged for a six-week contract to cover the exit of their
existing CFO until they appointed a new recruit and ended up
staying for eight years.”
Fortunately she couldn’t have picked a better “accidental job” as
she was exposed to all challenges of container movement from port
to paddock or port to distribution centre including both road and
rail modes.
“I quickly learnt no one day was the same and the pace and
diversity of issues faced to service the IMEX market fuelled my
passion for the industry and ways to improve efficiency,” Ms
Tomic says.
For the last 12 months, she has been in her current role with DP
World Australia’s first venture into landside operations that has
quickly become the largest rail volume service provider to the NSW
container export market.
Container company Royal Wolf’s Audrey Galbraith says some of
its best-performing depots are run by women.
After 21-years with the company, Ms Galbraith has just
been promoted to the position of executive general manager of
operations.
“Within our own business there are examples of female
operations managers… especially in New Zealand. Royal Wolf has
COLLABORATING TO ENCOURAGE DIVERSITY
The annual Supply Chain & Logistics Association Women in
Logistics luncheon is taking place on August 30, in Melbourne.
It’s an event that challenges thinking, inspires action,
encourages diversity and motivates collaborative change.
In its fourth year, the event gives participants the
opportunity to join the supply chain and logistics community
and share ideas that can be put into practice to encourage
diversity in the workplace.
The SCLAA has announced that Victoria’s minister for
ports and freight Melissa Horne will open the luncheon.
Registrations are now open: http://bit.ly/2019WILL
26 August 2019
thedcn.com.au

GENDER DIVERSITY
a policy of the best person for the job and some great opportunities
for further study and career advancement,” she says.
Ms Galbraith is now one of four women in Royal Wolf’s executive
committee, a number that has increased in the past 10 years.
“When I first started working in the industry, there weren’t
many women in senior management — but that’s shifted. While
the shipping industry is still a man’s world, Royal Wolf has changed
faster than the shipping industry,” she says.
“We now we have four women in the committee, who work
across HR, marketing, operations and technology. Women broaden
the outlook and we bring a new perspective to the business,” Ms
Galbraith says.
A BLOKE’S WORLD?
“The biggest challenge can be that shipping is still seen as a bloke’s
world,” Ms Cusack says.
“Sometimes, I think, the automatic assumption is that women aren’t
interested in a particular aspect of a job, or won’t have the skills. Things
like ‘it’s dirty, it’s a man job’. I’m not saying that this is everywhere in
the industry however the industry is due for a re-branding.”
Most of the women DCN spoke to challenged assumptions by
consistently expressing their passion for the industry and genuine
interest and insight into how freight is moved around the globe.
“There are three things that I love about working in this sector.
Firstly, the work we do is tangible. Whilst we make one move at a
time, the efficiency of each move is what creates an effective supply
chain,” Eliza Anning, general manager corporate services, LINX
Cargo Care Group, says.
“Secondly, the diversity of work in this sector is like no other I
have worked in. As the sector embraces new technologies, this is
not going to change,” she says.
“Finally, and most importantly for me, it is about the people who
work in this sector.”
My Therese Blank, Oceania customer service director, AP Moller-
Maersk, says the people are the most interesting aspect of her job.
“We have some amazing people working in the shipping and
transportation industry, in Oceania and all around the world,”
she says.
“I find it fascinating to learn about the challenges of the past, as
well as the changes our industry is now undertaking.”
Dani McGlashen (left) and GBRIMC teacher, Mick McDonald in the
Great Barrier Reef International Marine College’s full mission bridge
simulator
Sunlover Reef Cruises group general manager Sharon Sheldrake
(left), Dani McGlashen (centre) and Sunlover Reef Cruises group
human resources manager Nadine Machan
MAKING A SPLASH IN THE MARITIME INDUSTRY
Cairns resident Dani McGlashen is making her mark in the
maritime industry and she’s passionate about encouraging
more women to join the community.
Born to navy parents and growing up by the ocean, the
29-year-old has the sand and sea in her DNA.
“Ever since I was young I have always felt really good
and comfortable being on or near the ocean, and I decided
early on that I wanted a career in the maritime industry,” Ms
McGlashen says.
“I spent several years working as a dive instructor in Thailand
and on the Great Barrier Reef which was so fulfilling and a
dream of mine since I was a little girl.
“I reached a point where I started wondering what I was
going to do with my career long term, and I decided that the
boat handling and driving side of things seemed like a natural
progression for me.”
Natural for Ms McGlashen but traditionally uncommon,
women represent just 4.2% of the marine transport industry’s
national workforce.
In order to take the next step in her career, Ms McGlashen
enrolled at TAFE Queensland’s Great Barrier Reef International
Marine College.
“I was blown away by the college, it is an amazing facility and
it has the latest training gear and equipment,” she says.
Throughout her studies she learnt how to forecast the
weather and predict ocean conditions, operate propulsion
systems, radar and other electronic navigation equipment,
manage a small crew, and act as a chief mate on a vessel up to
80 metres long.
“It was great to practice my boat driving skills in the
full mission bridge simulator, as it’s a safe environment to
troubleshoot problems which could happen in the real-world,”
Ms McGlashen says.
She has now reached a major professional milestone -
becoming Sunlover Reef Cruises’ first ever female captain.
“Five years ago I couldn’t picture myself here so I am really
happy and grateful for the opportunities that have come my
way and for the support I’ve received from Sunlover,” she says.
TAFE QLD; Calypso Reef Imagery
28 August 2019
thedcn.com.au

In 2012, Ms Blank had the opportunity to experience first-hand
the industry’s impact on global trade.
“I was assigned to Myanmar for three months to conduct a
strategic analysis of the business development opportunities in
the country and make a proposition for future investments in the
country,” she says.
“My contract was extended and I was tasked with setting up the
Maersk agency as well as the first Maersk feeder service into Yangon.”
Ms Blank ended up staying in Myanmar until mid 2014 at which
time she had seen the transformation of the country, with farmers
having access to bigger markets and supermarket shelves filled with
international goods.
Ms Cusack describes the maritime sector as “fascinatingly
unique” and one that “transcends country borders”.
“Another great thing is that it is tangible. A big ship taking
cargo around the world beats theoretical concepts that are often
found in law. If a ship collides with another ship, there are
pictures,” she says.
“You can also legitimately talk about pirates, which no other
industry gets to do.”
While she has not experienced restrictions in her career based
on gender, Ms Anning says she is regularly the “only woman in
the room”.
“As a traditionally male-dominated industry, there is still a
perception that women would not be interested in the moving and
lifting of goods,” she says.
“Someone recently said to me that the shift work nature of
operational roles naturally means that women are less likely to
want some of the frontline operations roles… we must challenge
these views.
“Women have traditionally held shift work roles in a number of
sectors. Shift work in the supply chain sector is not special.”
Ms Tomic agrees the industry is male-dominated, especially at the
senior and executive management levels and that this has to change.
“More is required to achieve a balance across organisations
and it really stems from the male executives and current decision
makers. There needs to be a conscious decision to actively change
the dynamic at the highest levels,” she says.
GOOD NEWS STORIES
“Returning from maternity leave and taking on the role as country
manager and sales director for Maersk Australia did really open
my eyes to some of the challenges and perceptions that exist in our
industry,” Ms Blank says.
“It was not until then that I realised the importance of having
female role models in our industry. For me it’s important to be a
role model and show that anything is possible regardless of gender.”
Ms Blank was a beneficiary of Maersk’s parental policy offering
mothers or primary caregivers 100% paid leave for 18 weeks and
the ability to work 80% at full time salary for up to six months
prior to the child turning one year old.
“We offer all employees the opportunity to work flexible hours
to manage school pick-up and drop-off, as well as work-from-home
arrangements,” Ms Blank says.
“We see continued growth in our female employment ratio,
with 49% of female employees across Maersk Oceania, and 53%
in Australia.”
Outside of Maersk, Ms Blank highlights two programs she sees
as effective in getting more women into operational leadership
roles: the Patrick Women in Logistics cadetship program as well as
the Port of Brisbane female cadetship program.
“Stevedoring is the bastion of male dominance in the industry
and this is a very positive step to providing the necessary skills and
training to foster diversity,” Ms Tomic says.
“More of these types of programs are needed to attract and
retain, not only women to the industry, but also younger people
and the next generation of industry leaders.”
Another program worthy of mention was the Port of Auckland’s
recruiting processes when hiring for their gantry crane operators.
This new approach broke down barriers and allowed more women
to be hired, increasing the percentage of women in the workforce
from under 5% to 23%. The operation also increased productivity
from around 22 crane moves per hour to 41.
For me it’s important to be a role
model and show that anything is
possible regardless of gender
My Therese Blank, Maersk
Leading an all-female team at Maritime Industry Australia,
Teresa Lloyd says there are many great examples of programs that
support women’s participation in the industry.
“Having said that, I’ve now been around long enough to admit
that in general progress has been glacial and I now support
dedicated programs as a way to accelerate change to create a more
balanced workforce and leadership mix,” she says.
WOMEN SUPPORTING WOMEN
“I think anyone can be anything in the maritime industry with the
right work ethic, attitude and passion,” Ms Lloyd says.
“If someone feels they are being held back in any way from
advancing their career I encourage them to reach out to someone to
support them – there are plenty of people ready and willing to assist.”
WISTA is hoping to expand its reach with a mentoring program,
to further connect women in the industry as well as hosting a
WISTA APAC conference here in Australia in the near future.
Ms Galbraith says she is keen to set up a mentoring program
within Royal Wolf as well.
“My fellow female executive committee members meet on a
monthly basis and we will be looking to see how we can support
and help our fellow woman within Royal Wolf and beyond, from
practical support around further study for example or just to listen
to their thoughts on where they would like to head on their career
journey,” she says.
Ms Crosby says it has been important for her to watch and learn
from many leaders and influencers.
“Kerry Sanderson was the first female port CEO in the country
- of Fremantle from 1991 to 2008 - I remember meeting her early
in my career and was blown away by what she had achieved,” Ms
Crosby says.
“Having more women on boards and in executive roles
is essential, it is incredible that there is still such underrepresentation
when it has been proven more women equals
more profits.”
thedcn.com.au August 2019 29

GENDER DIVERSITY
Adrienne Cahalan [l] and Alexis Cahalan
Sisters making
their mark
Paula Wallace speaks with sisters Alexis and
Adrienne Cahalan about their accomplishments,
passions and plans for the future
In the course of speaking with people in the industry about
the upcoming gender diversity feature in Daily Cargo News,
the names of the Cahalan sisters came up repeatedly. Alexis
Cahalan, 56, and her sister Adrienne Cahalan, 54, have both
made outstanding contributions to the maritime field through
practicing law and on the ocean.
When DCN spoke with Adrienne she was just about to compete
in the 2225-mile LA-Honolulu Transpacific Yacht Race. A world-class
navigator and trailblazer in the sport of bluewater racing, Adrienne
received an Order of Australia Medal this year for services to sailing.
“The award relates to my career as a professional sailor and
the work that I’ve done on the Board of Australian Sailing, and
on World Sailing the international body as head of the women’s
forum,” Adrienne says.
The medal was also awarded for her work on the International
Regulations Commission and Oceanic-Offshore Committee for
World Sailing from 2009 to 2016.
Nominated for the Order of Australia by an old friend from college,
Adrienne says, “It’s a highlight to be recognised by your peers”.
“I didn’t do it alone, because I’ve grown up in a family where
my parents, and my friends, have always encouraged me to
continue in a sport that’s not the usual,” she continues.
“It doesn’t have the normal pathways that say tennis and other
more mainstream sports have.
“So whether it’s from encouragement when you’re finding it
tough, to looking after your children while you need to quickly go
and swing a compass, I’ve always had that support that has enabled
me to move through the sport.”
Adrienne competed in her first Sydney to Hobart yacht race when
she was 20. She’s now been in 27 races (she was the first woman to
complete 25), with six line honours and two overall wins.
“I’ve always specialised in offshore sailing, bluewater racing
like the Sydney to Hobart Yacht race and around the world races
because navigation and weather strategy is my thing,” she says.
“So I’ve always moved between the two careers in terms of a
career as a professional in the sport and in maritime law.”
IN THE FAMILY
Adrienne and Alexis have always had an affinity with the water,
growing up on the Lane Cove River in Sydney.
Both sisters studied law and it was Alexis who first moved into
maritime law, later encouraging Adrienne to do the same.
“I had just returned from crewing on a tall ship sailing
expedition which commenced in Antigua and sailed onward to
Bermuda and then the Azores and applied for a position with
Ebsworth & Ebsworth who were the leading maritime law firm
at the time,” Alexis says, who is now principal lawyer at Thomas
Miller Law in Sydney.
“My sailing experience landed me the job and I remained at
Ebsworths for over 10 years which included a secondment to the
London shipping firm Richards Butler.”
When Adrienne first graduated from the College of Law she
spoke to her sister who suggested that she look for a career in
maritime law.
“And so I did, she helped me put my application together and so
we both started out within a couple of years of each other working
in rival maritime firms,” Adrienne says.
Image supplied
30 August 2019
thedcn.com.au

From 1995-1998 the sisters worked together at maritime law firm
Norton Smith & Co and then Norton White.
“Norton White was a national firm and an opportunity came
up to move to northern Queensland to work with Brian White
who was then Norton White Cairns. I stayed for 17 years as a
consultant with Brian,” Adrienne says.
“It was very much the frontier, responding to marine incidents
in remote locations, ships aground on the reef, Papua New Guinea,
all the western Pacific, it was really hands on.
“You’re not on the circuit 365 days a year in pro sailing… and
I knew in the long-term that I always wanted to keep practicing
maritime law.”
THE PEOPLE-FACTOR
It is dealing with the unexpected that has been one of the most
interesting aspects of maritime law for Alexis.
“Anything from dealing with stowaways, vessel casualties, to
oil spills. At Ebsworths we had the A-List of maritime clients, and
I worked on cases which have been the subject of much law in the
area,” she says.
Alexis also enjoys the “human element”. “It is never just the
documents, speaking with witnesses and the personalities both
of witnesses and clients (and opposing lawyers for that matter)
involved in claims is an important aspect,” she says.
“Another highlight has been working with many great legal
minds over the years. I was fortunate to have learnt from and
worked with the best of the best of maritime practitioners.”
Commenting on her sister’s Queen’s Birthday Honours,
Alexis says, “As a family we are very proud of what Adrienne has
achieved… she has nerves of steel and great determination to do
what she has done at sea”.
“Everything that we have collectively been able to achieve is due
to our supportive families,” Alexis continues.
“Mine has had to put up with me be constantly on email and phone,
day night and on weekends as transport is a 24-hour industry.”
As for sibling rivalry, Alexis says, “Growing up in a family of six
children there was always room for some friendly competition.
“In our adult life it is more about helping one another than
competing I like to think,” she says.
CHALLENGES FOR WOMEN
While it’s not so unusual now, Alexis was one of the first women
in New South Wales to be made a partner in a law firm on a parttime
basis.
“The juggle of family life is very real,” she says. “The busy home
life has had to be underplayed over the years and I was always
conscious not to draw attention to this in the workplace.”
With the benefit of hindsight, Alexis says she probably missed
out on some networking opportunities over the years.
“It was more manageable to attend industry functions which
were lunches rather than ‘drinks’ or seminars after work.
“While the children have been growing up it has been a real
struggle to get to these functions after a long day at work, then
returning to feed and help four children with homework,” she says.
With two of her four daughters now following in her footsteps and
studying law, Alexis is keen to see more support for younger women.
“I’d like to see more mentoring for younger women - and not just
women for women - but by men in the transport sector.”
She thinks there should also be more investment in industrybased
training, “getting people away from their desks and onsite in
the transport industry”.
You’re not on the circuit 365 days
a year in pro sailing… and I knew
in the long-term that I always wanted
to keep practicing maritime law.
Adrienne Cahalan
CLOSER TO HOME
After breaking the round-the-world sailing record in 2004,
Adrienne was married and has two children.
“Having had children I no longer compete full-time on the pro
circuit, however I continue to take part in the major races which
means competing in about five or six races a year,” she says.
On the July 1, Adrienne opened her own law firm Agar Cahalan
Maritime, in Sydney.
“I’m a team person so now stepping out on my own will be a
challenge. But having said that, there’s quite a few people now
at my age who are taking the same step as me and we’re just
establishing a new network,” she says.
Will the sisters work together again? This would be an exciting
opportunity for the sisters in law they say.
Who helps those who are key to our industry?
Piracy, shipwreck, abandonment and separation from loved
ones are just a few of the problems merchant seafarers face.
Around the world, The Mission to Seafarers provides help
and support to the 1.5 million men and women who face
danger every day to keep our global economy afloat.
Your financial support would be much appreciated.
Donate now: BSB 062 074 Account 1000 8062 (Tax-deductible)
www.missiontoseafarers.org.au
THE MISSION TO SEAFARERS, Sydney
24 Hickson Rd, Millers Point NSW 2000
Tel +61 (0)2 92413009
enquiries@missiontoseafarers.org.au
thedcn.com.au August 2019 31

GENDER DIVERSITY
Connecting women
in the APAC region
Lawyer and president of WISTA in Australia,
Alison Cusack, writes of her first international
conference recently in Hong Kong
Heading to the WISTA APAC conference, I’d never travelled to
Hong Kong before and my preconceived notions of the place
were Disney, dumplings and a very welcoming WISTA HK
committee.
When I landed during a lightning storm, torrential rain
and peak hour traffic, it wasn’t the most thrilling start to my first
international conference. The protests were heating up and as a
non-local I was starting to wonder if the conference would proceed
amongst the million strong protestors (more from a logistics
standpoint).
Fast forward to a reassuring email from the WISTA HK president,
Catherine Smith and the delegates arrived to the welcome cocktail
reception. It was held at the Hong Kong Royal Yacht Club in
conjunction with the Nautical Institute.
As is the norm when Australians travel overseas, you’re more
likely to meet fellow Australians than bother to meet up locally.
This was the case with Jillian Carson-Jackson from the Nautical
Institute. We’d corresponded and chatted multiple times under the
banner of NI and WISTA however it took a joint function in HK for
us to finally connect.
If you haven’t been following the Women in Maritime 365
Instagram project (see boxed section), head over and check it out.
Jillian and Jeanine Drummond are profiling a woman from the
maritime industry every day for the duration of 2019.
APAC FOCUS
The WISTA APAC conference is in its second year, with the
inaugural conference being held in Singapore in 2018. This year’s
conference theme was “Changing tides and shifting sands” and the
conference was held over three days.
For some perspective, WISTA International has 46 national
WISTA associations and WISTA Australia receives invitations to a
lot of conferences around the world, including the International
AGM in the Cayman Islands in November this year.
As the only delegate from Australia, I was promptly taken in
by the WISTA Singapore delegation which provided for a great
experience. When you can be so readily taken in by a group of
strangers (who are also not locals) who are determined to make
you feel included and enjoy your stay shows the true power of
WISTA. It weaves its way through culture, language barriers and
geography. It also sets the foundation for WISTA to achieve change
on a large scale.
THE CONFERENCE
After our joint networking with Nautical Institute (and a cultural
dragon display) we returned to the Royal Hong Kong Yacht Club for
a day of learning, discussion and skill development.
Panel 1: Hong Kong’s strategic place as a modern shipping,
logistics, technological and disputes centre on the Belt and Road
and in the Asia Pacific Region.
This topic was headed up by lawyers and representatives from
the Hong Kong government and arbitrators. It was an interesting
discussion around Hong Kong’s role as the gateway to Asia (or
China in some views) and whether that had been eroded over time.
It was also particularly interesting in the context of the protests
over the introduction of the Extradition Bill.
As I had been following the story through the Australian media,
I did raise the question to the panel about perception and PR.
Normally with international stories you rarely hear the resolution
These types of conferences are
critically important to provide women
(and men) in the shipping industry
with the foundations to discuss
important issues.
or solution to the problem, only the problem itself. Based on that I
asked whether the HK government and arbitrators were considering
running a charm offensive PR campaign to educate and reassure
those looking to have Hong Kong as the seat of arbitration in their
various shipping contracts.
As the entire issue was still in a state of flux, there was not a
clear answer but I felt it was useful to show in this international
conference the perception other countries’ media can play (rightly
or wrongly) in decision making on a large commercial scale.
Panel 2: Diversity and Inclusion – making your maritime and
transport company more profitable.
One of the main takeaways from this panel was about flexible
Alison Cusack
32 August 2019
thedcn.com.au

[l-r] Magdalene Chew, WISTA Singapore president; Alison Cusack, WISTA
Australia president; and Catherine Smith, WISTA Hong Kong president
[l-r] Jillian Carson-Jackson, Nautical Institute (International); and Despina
Theodosiou, WISTA International president;
more diverse cross section of tables to really challenge our thinking.
One of the lessons I learnt was how little time we sometimes give
to deliberately creating our brand, instead letting it happen to us.
working for all employees. There has been an increased cultural
shift towards understanding how flexible working can assist all
employees, not just working mothers, but working fathers, those
who care for other members of their family or even those who want
a work-life balance.
The best question from the audience was a former mariner who
asked why companies don’t ask those directly affected, in this
case female seafarers, what assistance they need. It is great to see
male allies stepping up and being vocal about simple strategies to
promote gender inclusion in the maritime sector.
Panel 3: Technology and shipping
There was a great debate about the merits of blockchain,
electronic bills and other new technology that didn’t so much find
a solution but made for a rousing debate.
A particular highlight was the WISTA International president
Despina Theodosiou (joint CEO of Tototheo Maritime) presenting
as the head of a technology company.
There was also an interactive workshop on leadership and
training skills, “How to make your personal brand work for you”.
They deliberately split up the tables and reformed them to get a
CONFERENCE AIMS
The aim of the conference was to better connect women in the
APAC region as we are geographically closer than our European and
African cousins and are more likely to be travelling and interacting
on matters within the APAC region.
These types of conferences are critically important to provide
women (and men) in the shipping industry with the foundations
to discuss important issues but also to provide a basis for solid
networking and future collaborations on an international stage.
A very big thank you to my hosts, the WISTA Hong Kong
committee, headed up by their president Catherine Smith who
made everyone feel incredibly welcome. Also thank you to the
WISTA Singapore delegation for temporarily adopting a stray
Australian and making sure she didn’t accidentally join a protest.
Finally the biggest thank you to the WISTA Australia committee
whose volunteer efforts assist WISTA Australia to grow and thrive a
WISTA chapter.
APAC 2020
Stay tuned for the location of WISTA APAC 2020 – but it may be
closer (geographically) than you may think!
THE WOMEN IN MARITIME 365 PROJECT
women.in.maritime@nisea.org
Every day this year, The Nautical
Institute South East Australia branch has
been publishing images and profiles of
inspiring women in the maritime field
all over the world as part of its WiM 365
project. This is in support of the IMO’s
2019 theme of “Empowering Women in
the Maritime Community”.
Some of the women profiled include
Hanan Abu Othman from Jordan. She
works as a third mate at Arab Bridge
Maritime Co.
“The first time I stepped on-board
ship almost every officer and crew
member asked me the same question,
what am I doing here and why did I
choose Merchant Navy as my career?”
she says.
“Every time I came across a new face
in this industry, the initial topic of our
conversation would begin with the same
questions. It was very discouraging and
disconcerting.
“Most seamen are stereotypes and
have a common belief that women have
no business on board ship… some even
advised me to quit my career and look
for jobs ashore.”
By applying willpower, strength and a
lot of effort, Hanan is now treated with
“equal importance and respect”. She is
well on her way to achieving her goal
to become the first Arab captain in the
Middle East working in large ships.
Through the NI project we have also
been introduced to Ajak Anthony Akol
from the Republic of South Sudan.
Like many other women featured on
Instragram, her story is a fascinating
one. After graduating from law school,
Ajak decided to pursue a maritime
career. She studied in Alexandria, Egypt
and graduated with a second officer
CoC and a BSC in “Maritime Transport
Technology”.
Unfortunately she has been unable
to secure a permanent job at sea since
graduating in 2014, partly because Ajak
is the first and only person from her
country to be trained in such a field.
“Moreover, my country South Sudan
is the world’s youngest nation and
since it got its independence in 2011, it
became a landlocked country and lack
of orientation about the maritime field
has played a negative role in [me] getting
employment,” she says.
“Not to mention that being a female
is factor that can’t be ignored. Most of
the shipping companies and crewing
agencies have turned me down simply
because I am a female.
“It’s so frustrating, but I cannot give
up on my dream of becoming a master
mariner because I love my profession
and believe that being a pioneer comes
with lots of challenges and burdens,”
Ajak says.
Follow the project on Instagram:
https://authgram.com/women.in.maritime
Women who are interested in participating
are encouraged to send a brief profile and
images to:
women.in.maritime@nisea.org
thedcn.com.au August 2019 33

GENDER DIVERSITY
Welcoming women
into logistics
General manager of corporate affairs at LINX
Cargo Care Group Sheridan Jones, talks about why
diversity is part of the company’s future focus
LINX Cargo Care Group is firmly focused on the future.
During the past three years, LINX CCG has seen a shift
in the industry as well as an increase of women bringing
great capability and balance to its business, which has been a
welcome change across the workforce.
In 2016, the business had less than 10% of women in the
organisation. This statistic has increased to 14%, with 26.4% of
management positions in the LINX group held by women.
LINX CCG includes employees on parental leave in salary
reviews and makes superannuation contribution on either company
or government paid parental leave scheme. This is considered
leading practice by the Workplace Gender Equality Authority.
DIVERSITY OF ROLES
A critical factor for LINX CCG is how it diversifies skillsets across
the workforce for people to work within the increasing complexity
of the industry.
With access to real-time data, customers’ needs can change
daily through all parts of the supply chain. Increased visibility of
their cargo via technology increases their expectations of real-time
responses. This transparency means employees need to anticipate
responses and provide tailored solutions to meet customers’
changing needs – anytime, anywhere.
“To remain agile and nimble in an ever-changing market,
workforce capabilities and attitudes need to change and
employees need to keep up with this new way of working to
ensure we are responsive to our customers’ needs,” Anthony
Jones, group CEO says.
“Diversity for us is not just about ensuring more women are
given the opportunity to join our team – that’s a key component
– it’s about pro-actively creating a diverse and inclusive workplace
with a broader mix of capabilities and mindsets,” he says.
Shauna Straney, road transport safety and
compliance manager, LINX & C3
“We see diversity and inclusion as leadership responsibilities,
not HR responsibilities, which is why our leaders play a key role in
building capability to work more effectively in diverse teams, and
adapt quickly to the future needs of the logistics industry.”
Road transport safety and compliance manager for LINX & C3,
Shauna Straney, came into the business after discovering a passion
for OH&S while doing a Human Resources Diploma. She started at
LINX in a health, safety and environment role and has now moved
into management.
“Every day I find I’m still learning something new… moving up
into a manager role and having two direct reports, one of the best
parts of my job is actually getting to watch those two ladies grow in
their roles,” she says.
CORE VALUES
One of LINX CCG key organisational priorities is to engage and
strengthen leadership to champion change and foster a diverse,
respectful and inclusive culture.
“We believe our future business success is heavily reliant on how
well we recruit, engage, develop and manage people with different
backgrounds and thinking styles,” Mr Jones says.
With diversity a key business focus, LINX CCG became a
founding sponsor of Wayfinder in 2017, an initiative it sees as
a “game changer”. Wayfinder’s focus is on attracting women
into operational roles in the supply chain and logistics sector.
The program responds to the significant capacity and capability
challenges currently experienced across Australia.
The program has produced several videos of women working
in supply chain logistics careers, including one with Kate Carulli,
head of media, marketing and sponsorship at LINX CCG.
“I have a really supportive manager and a group CEO that likes
to do things differently. He encourages diversity in the workplace
and what that means for me is how I can think differently to drive
awareness for the group,” Ms Carulli says.
“I believe being a woman in the industry is a really exciting
thing. We work differently, we think differently and if you work
with people that understand this, women can really thrive.”
As the supply chain and logistics industry continues to
transform and change, LINX CCG knows the workforce of today
will not be the workforce it needs in the future so the group will
continue to build and grow in order to compete globally.
LINX CCG
34 August 2019
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Helping economies grow
and customers prosper.
We enable smarter trade to
create a better future for all.

GENDER DIVERSITY
Jeanine Drummond, harbour master –
Newcastle & Yamba, Port Authority of New
South Wales and IAPH Women’s Forum vice
chair – Asia, South East and Oceania
sectors, particularly when women are in a significant minority at
their workplace.
In order to reduce this gender gap and foster greater diversity
and inclusion in ports, the IAPH Women’s’ Forum identified the
need to provide additional support and guidance to women who
have already chosen a maritime career as well as attracting new
talented women to the sector. Mentoring assists these women
build networks, embrace their own leadership strengths, and
receive guidance and active support along their career trajectories.
This is particularly important at critical career milestones where
women need to prepare for promotion. In an effective mentoring
relationship, the mentor should also equally benefit from the
experience as the mentee.
Maritime women on
the international stage
Jeanine Drummond writes about the
International Association of Ports and Harbors’
program to attract and retain female talent in the
industry and DCN’s Paula Wallace looks at some
other global initiatives
At the International Association of Ports and Harbors World
Ports Conference in Guangzhou (China) in May, the IAPH
Women’s Forum were excited to launch a pilot program for
the professional mentoring of Women in Ports.
Established in 2012, the IAPH Women’s Forum aims to
advance and empower women in the port industry, attracting
talented female professionals to join the sector. The Forum seeks to
ensure women can better compete for career positions at all levels
in ports as well as discuss women’s issues in the maritime industry.
The new program’s launch coincided with the year of the
International Maritime Organization’s World Maritime Day theme,
namely ‘Empowering Women in the Maritime Community’.
The theme reflects the identification of the need for, as well as
a growing level of interest by maritime organisations, to provide
training initiatives to retain and attract women employees. This
comes at a time when organisations are seeking to continuously
improve overall business performance through being more diverse.
This mentoring program had been a long-anticipated action on
the IAPH Women’s Forum committee’s list of priorities. Evidence
has demonstrated that formal mentoring programs can support
and empower women within organisations and other industry
KEY ENABLERS
As the Women’s Forum explored the mentoring idea it encountered
several challenges in setting up a focused program for such a
diverse international organisation as the IAPH by means of a
volunteer committee.
Nothing can be more challenging than the excessive
administrative burden that comes with managing elaborate
spreadsheets of mentors and mentees, notwithstanding the bulk
email that accompanies the process. Above all, the limitations of
having skilled human resources available to oversee the program
with the specialised knowledge required to ensure benefit for both
mentor and mentee weighed heavily on the proposal.
Only recently has innovation and technology improved to be
able to deliver online, cloud-based solutions to build a scalable
mentoring program whereby excessive administrative workload can
be avoided.
The IAPH Women’s Forum searched the market for a solution,
speaking with other similar users of cloud-based mentoring
software such as Ally Cedona, founder of Women Offshore. Based
on their findings, the Women’s Forum sought and successfully
obtained IAPH board approval to invest US$10,000 in deploying the
Mentorloop software platform in a pilot program for Women in
Ports Mentoring.
The platform provides for instant sign-up of mentors and
mentees with customised survey questions. It creates ideal mentormentee
matches, ensuring mentor-mentee interaction is engaging
and productive. Thanks to available online mentoring resources,
learning and development tools and diagnostics to measure and
report on the program’s tangible results, Mentorloop has the
potential to increase active participation and engagement.
GLOBAL REACH
The Women in Ports Mentoring program has so far connected
IAPH Women members from variety of port roles including marine
pilots, port engineers, information communications technology
specialists, harbour masters, HR experts, as well as executive
management from diverse countries such as Panama and Namibia
to the UK, Sweden, US, Australia and beyond.
The IAPH Women’s Forum is excited to see this mentoring
program gain such momentum and is working to further women’s
career prospects using this innovative, knowledge-sharing tool.
Alongside the recently-launched Women in Ports Mentoring
program, the IAPH Women’s Forum provides a Biennial Training
Scholarship worth US$15,000 for a successful applicant from a
developing country to study abroad as well as a Women’s Forum
Jeanine Drummond
36 August 2019
thedcn.com.au

Annual Meeting Scholarship which sponsors a young professional
to attend the IAPH annual World Ports Conference.
The forum is open to any women working in ports from IAPH
members and IAPH associate members alike, who are interested
in networking, examining best practices, resolving professional
challenges and supporting womens’ careers in ports.
Image supplied
In an effective mentoring relationship,
the mentor should benefit from the
experience as much as the mentee.
Jeanine Drummond, IAPH Women’s Forum
SHE-POWER IN INDIA
Director of Sitara Shipping Ltd, Sanjam Gupta has conducted the
first research into the participation of women in the maritime
sector in India. She will be unveiling the full results of her surveys
on World Maritime Day in September.
It all started back in May 2018 when she was recognised in the
Gender Awards of the Swedish company Sandvik.
“Each year they hold the Gender Awards in India where they
acknowledge the work of people working towards gender parity,”
Ms Gupta tells Daily Cargo News.
“As part of my award they were to fund my project, in this case
being India’s first survey to get data for women as there was none.”
There were three surveys conducted in total: for women
seafarers; for women in shore-based positions; and for employers.
For the latter, Ms Gupta employed the SHE Index of Norway as a
tool to collect data, which ranks companies on how friendly their
policies are towards gender.
The surveys involved 205 companies, 700 women in shorebased
positions and 91 seafarers. It shows that around 11% of top
management positions are held by women and the total share of
female employees across the industry is 18% in India.
“Maritime doesn’t value female voices, because there aren’t
enough female voices in maritime.”
This has led Ms Gupta to create an initiative to increase “female
voices” and on September 27 she will launch the SheEO project.
“The aim of SheEO is to create the next generation of woman
maritime leaders,” Ms Gupta says. “And while it’s important to
have more female voices in maritime, it’s essential they have the
right skills and opportunities to rise to leadership positions.”
SheEO will focus on the business case for diversity across all
sectors in the industry and it aims to “sensitise” the management
of shipping companies towards inclusion of more women.
“Raising the bar is never easy, but it’s necessary,” Ms Gupta says.
“The ultimate aim is to have a complete support system for
women working in maritime. To work with employers to make a
friendly ecosystem wherein women get the much needed support
at all stages of their career cycle,” Ms Gupta says, adding that this
includes flexible hours, work-from-home options and options to
come back to work after a break.
TRANSGENDER PEOPLE AT SEA
While the subject of women’s participation on the maritime sector
Sanjam Gupta,
director, Sitara Shipping Ltd
has received interest in recent years, there is still much work to
be done in understanding the issues confronted by lesbian, gay,
bisexual and transgender identified people at sea.
Non-government organisation Human Rights at Sea is
pioneering work in this area and has released a briefing note to
introduce its work in the area.
“Understanding sexual orientation and gender identity is
essential to be both fully aware and educated of issues that LGBT+
people might face in the maritime community,” David Hammond
from HRAS says.
The reality is that in at least 76 countries same-sex relations are
illegal; penalties range from corporal punishment, to jail terms, life
imprisonment and the death penalty.
Around the world, discriminatory laws are found in both explicit
terms, and in vague language related to morality, the policing of
gender, and offences against the “order of nature”.
When asked what whether we have any idea of the
participation rate of LGBT+ people in the maritime sector, Mr
Hammond says, “In short, no. When Human Rights at Sea
triggered the LGBTQ+ discussion in 2015 … there was little
appetite from the shipping industry.
“The charity initially lost growing professional relationships
based on the fact that we were raising the issue at first instance,
and that we were quote: ‘mixing with fags’ which was one of the
side comments I had,” he says.
“Further, there was push-back from Mediterranean colleagues
who said it would cause the charity to become avoided in its work.
At that stage it was a very sad indictment of the state of affairs.”
Due to a lack of available funding streams, capacity and support
HRAS has not undertaken any further research in the area.
Mr Hammond says the issues likely faced by LGBT+ people at sea
would include, “Embedded and institutional prejudice based upon
personal and religious beliefs, and sections of the world which do
not recognise the rights of the LGBT+ community”.
“This is especially so for seafarers who transit multiple
jurisdictions which have wide-ranging approaches, laws and views
on the topic,” he says.
USEFUL LINKS
sustainableworldports.org/womens-forum
iaphworldports.org/womens-forum
facebook.com/groups/126585944210142/
http://goo.gl/bgaVYQ (LinkedIn)
thedcn.com.au August 2019 37

GENDER DIVERSITY
Navigating the hazards
The Nautical Institute’s Jillian Carson-Jackson
looks at change that has occurred and changes
that need to occur
I
want to tell you a story – three stories to be exact. The first
involves a young woman who wants to be an engineering
technical officer and writes entry exams for two reputable
marine colleges. One of the marine colleges selects her for an
interview. She presents for the interview, only to be told “What?
You are a girl cadet? Sorry, didn’t notice that in your application -
sorry, we don’t take girl cadets”.
The second story is of a female officer in the offshore industry
who becomes pregnant and approaches the company for
information on maternity leave policies, only to be told they don’t
have any. She is forced to quit her job to have her baby.
The third story tells how newspaper clippings about how women
should not be on ships are left on the bunk of a female cadet.
Flowers sent to celebrate her birthday are thrown overboard, she is
told repeatedly that it is bad luck to have women on a ship, and that
the work is too difficult for a woman.
Okay, now a pop quiz – when did these incidents happen?
a 100 or more years ago?
b In the 1950s?
c In the 1970s?
d Since 2000?
What did you say? Frustratingly, these incidents are all too
common today.
The third scenario happened to me when I was a cadet (about
30 years ago). I almost gave up on the maritime industry as a
career, but I persisted. Unfortunately, while this happened when
I was a cadet in the 1980s, women are continuing to receive the
same comments today. And these comments are not only for
shipside positions, women on the shore side are also facing bias –
unconscious or not – which limits their employment and prospects
of promotion.
Stories 1 and 2 were identified in the Women in Maritime 365
(WiM 365) challenge. In the first instance, the young woman
applied to another college that accepted her for an interview. Still
conscious of the last interview debacle, she confirmed with the
college that they knew she was a woman, and was pleased to hear
they encourage women to apply. In the second instance the woman
re-applied for a job with the company after the birth of her baby,
and is now working ashore for the company to develop policies
and procedures to tackle the problem. The stories on WiM 365,
show positive change, with indication of strong support for gender
diversity in the maritime industry.
Did you know the International Maritime Organization’s
International Convention on Standards of Training, Certification and
Watchkeeping for Seafarers 1978 (STCW) (as amended) promotes
women in maritime? In 1997, Resolution 14 – Promotion of the
Participation of Women in the Maritime Industry was introduced.
The text noted the IMO’s medium-term plan for the integration
of women in the maritime sector, and invited governments to give
special consideration to securing equal access by men and women
in all sectors of the maritime industry; and to highlight the role of
women in the seafaring profession.
In 2010 the Manila Amendments to the STCW recognised the
limited progress made in promoting the participation of women.
The amendments strengthened the text of Resolution 14, including
reference to the resolution adopted by the International Labour
Organisation in 2006 concerning the promotion of opportunities
for women seafarers.
Yet, there is still a significant gender divide in the maritime
industry. This is an issue that the IMO is taking seriously. In
addition to the #IamOnBoard theme of the International Day of
the Seafarer and the World Maritime Day Theme ‘Empowering
Women in Maritime’, the issue is being highlighted during IMO
meetings. At the recent Technical Cooperation Committee 69
(TC69), held in June 2019, delegates at the IMO heard from a
number of focus groups working to promote and empower women
in maritime.
Some key points include (as referenced in IMO TC69/10):
• Provision of fellowships for officials to attend the training
course on women in port management.
• Provision of fellowships for women to attend training on aids
to navigation management (IALA AtoN Management Level 1
course).
• Fellowships for women to attend the port senior management
programme at the Galilee International Management Institute
in Israel.
• Nomination of a female candidate to the IMO fellowship at the
World Maritime University in Sweden.
The IMO supports regional Women in Maritime Associations
in their work to promote gender diversity both afloat and ashore.
This work includes bridging the gender gap, addressing institutional
barriers and breaking down cultural stigma.
As we near the date of World Maritime Day 2019, officially set for
26 September, I hope there is increased activity to raise awareness
of the ongoing imbalance of gender diversity in our industry. I also
hope we can start telling success stories, where real and tangible
change is being achieved. This is our chance to take stock of how
we are doing, consider scenarios that inhibit or actively deride a
woman’s decision to work in the maritime industry, and promote an
environment that celebrates gender diversity.
For now, though, I leave you with wise words of wisdom from
some of the amazing women who have told their story on WiM 365:
“Every girl is having their own, hard story.”
“Failure will never overtake me if my determination to succeed
is strong enough.”
Jillian Carson-Jackson, senior vice
president, Nautical Institute
JCJ
38 August 2019
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Port Authority cutter crew
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TASMANIA
CHANGING
TIMES
New TasPorts CEO Anthony
Donald talks freight and
infrastructure with DCN
editor David Sexton
Talking with Anthony Donald, it is clear the new TasPorts chief
executive is a ‘glass half full’ kind of guy.
Mr Donald took over as acting CEO late last year following
the retirement of Paul Weedon and more recently was
officially confirmed as chief executive.
Based in Launceston, Mr Donald joined TasPorts from the Port
of Melbourne about two-and-a-half years ago (where he was deputy
executive general manager of the Port Capacity Project) and has
talked about taking “a fresh approach to our business”.
“I have been thoroughly enjoying my time with [TasPorts],” Mr
Donald tells Daily Cargo News.
“My interactions with the team and customers and stakeholders
have all been very positive.
“I’ve got what I believe to be a very strong vision for the
organisation associated with growth and performance which I’m
very confident will deliver some important results and outcomes.”
ORGANISATIONAL CULTURE
He talks about improving “organisational culture” and
“relaunching our vision for the organisation”.
“We’re adopting a refreshed approach to our strategic planning,”
he says.
“We’ve been more actively engaging of our staff and
empowering our staff and encouraging them to take ownership
and to support change.
“With respect to quality we are really taking an approach where
clinical compliance becomes business as usual which I think is
really important, not only from a safety perspective but a security
and environmental management perspective also.”
He also notes a focus on “bigger, broader and more active
engagement” with customers and being “more agile advocates of
what they want to achieve”.
“We need to really understand the movement of freight in order
to assist in customer engagement,” he says. “We’re absolutely
committed to focusing not only on what goes on in the port gate
but outside the port gate as well.”
STRUCTURAL CHANGE AND GENDER
Within the first week of becoming permanent CEO, Mr Donald
says he moved to modify the leadership structure of the business.
“We haven’t changed headcount, but we have changed reporting
lines,” he says.
“I have a much flatter structure reporting in to me than what
was in place previously.
40 August 2019
thedcn.com.au

Searoad Mersey II, an important ship for Bass Strait trade
ChameleonsEye; Danielle Shaw; Toll; Dale Crisp; Bass island Line
“What also is pleasing from my perspective with that change is
we now have a 50/50 gender split in the leadership of our business -
so 50% of the highest leaders in our business are female.
“That is just how it transpired but it is a huge plus.”
So is this a concession customer service had drifted?
Mr Donald denies this.
“The previous focus was on customer engagement, we’re just
taking that to another level,” he says.
“We had for a period of time probably haven’t had the right
number of resources in place to manage our customer interfaces at
the levels we would have liked.
“We’ve recently recruited and grown our commercial and
customer management side of the business.”
STATE OUTLOOK
Mr Donald says he is excited about the outlook for Tasmania in
terms of trade, with new infrastructure and irrigation projects
setting up the state for a strong future.
“Ultimately our role is to facilitate trade and act commercially.
The positive outlook for our state is really exciting.”
Tasmania faces unique challenges, not least having most of its
freight task spread across the northern ports of Burnie, Devonport
and Bell Bay, as well as some freight at Hobart Southern Export
Terminal (a joint venture with Qube).
“The multiport system is unique and something that
differentiates us from many other capital city ports around the
country. Because of that we have relatively low asset and labour
utilisation,” Mr Donald explains.
“We have relatively speaking high maintenance and operational
costs because our berth utilisation at our main ports is relatively
low compared with other ports around the country.
“But that actually provides us with an advantage for growth as
well. We have opportunities to fill those gaps essentially for the
benefit of our customers.”
INTERNATIONAL SERVICES
International services have come and gone into Tasmania and there
has long been debate about the viability of international trade that
doesn’t go via Port of Melbourne.
At present MSC runs a service that connects Bell Bay with
Noumea as well as Brisbane and Sydney, but that is about it so far as
international is concerned. But Mr Donald takes a bullish outlook.
“We are absolutely committed to an international container
service,” he says.
thedcn.com.au August 2019 41

TASMANIA
INDUSTRY BODIES FEELING CONFIDENT
Industry bodies in the ‘apple isle’
believe the state is well placed to
grow and to navigate future freight
challenges.
Tasmanian Logistics Committee
chair Brett Charlton says aside from
some boarding issues with the new Toll
vessels earlier in the year, things had
been going “relatively smoothly” across
Bass Strait.
However he notes these delays
did, however, cause some stressful
moments.
“We’re very mindful of the fact that
our peak season is only a few months
away so we are very keen to ensure
that our mainland and international
markets are not going to go through
something that happened at the start
of the year,” he says.
“But by all accounts, everything
will be ok. We have more capacity
now across Bass Strait with Toll and
SeaRoad so it is certainly a positive
picture overall.”
Mr Charlton says the Tasmanian
community understands it is “at the
bottom of the planet and can’t pick and
choose [shipping services]”.
“We do understand that and just
have to work through those dramas,”
he says.
“[We had] a wake-up call to shippers
to understand that we’re on an island
and we need to make sure we have
contingency plans where possible.”
Mr Charlton says he is encouraged
by TasPorts showing an interest in
developments beyond the port gate.
“We have a very large cruise line
season coming up. We’ve raised that
– not so much a concern but we are
aware there are some rumblings within
industry that cruise liners coming into
Burnie may have some impact upon
the bulk carriers,” he says.
“To TasPorts’ credit, they’ve come
back and said ‘yes, we are working
closely to ensure that doesn’t impact
upon bulk shipping’.”
Mr Charlton says some $40m for
a new shiploader at Burnie was also
positive, helping that port handle a
larger dry bulk task.
“One area that is often forgotten in
Tasmania is the Antarctic space,” Mr
Charlton says.
“We’ve got an extended runway
in Hobart to accommodate flights to
Antarctica for equipment and we’ve
also got a new ship coming on towards
the end of next year which will be
stationed in Hobart.
“I think there is over $400m
allocated to Antarctica for rebuilding
Macquarie Wharf, Mawson, and
Casey bases so there is a lot of
money going in.”
Mr Charlton says shippers have
a good relationship with the Port of
Melbourne (the trans-shipping) port,
with PoM people reemphasising their
commitment to Tasmania at a recent
industry forum.
For some perspective on the
landside, DCN spoke with Tasmanian
Transport Association executive
director Michelle Harwood.
Ms Harwood says the state‘s freight
corridors require attention but she is
encouraged by recent developments
such as the Tasmanian Integrated
Freight Strategy.
“We’ve seen a whole program of
bridge strengthening works, so that’s
been good,” she says.
She notes a push for better rest areas
for heavy vehicle drivers in Tasmania.
“It is something that we have been
working on,” she says.
“Tasmania has very few areas that
currently meet the national guidelines
for heavy vehicle rest driver rest
areas. This is something that has
been raised in the past by a number
of different groups and the TTA spoke
with the [former] minister Jeremy
Rockliff about this.”
She talked also about “a significant
skilled driver shortage”.
“We’re still working to quantify,”
she says.
“There may well be people with the
relevant licences but there is a lack of
people who are suitably competent.
We will consult with industry and
education providers who we interact
with and develop a plan.”
RSV Aurora Australis, Mawson Station, Antarctica
Graeme Snow; TasPorts
42 August 2019
thedcn.com.au

“We’ve announced as part of our port
master plan the commitment to deliver
[international shipping] in Burnie. That is
a challenging project but the benefits to the
state if that is successful are huge.
where we can pretty quickly attract the
larger vessels that are stored in the region.
“So this is about putting in place some
short term initiatives but really with a longterm
objective.”
“I’m very confident that if we can
deliver an international container service
that reduces costs of international freight
movement then we’ll see new markets
within the state of Tasmania.”
PORT OF MELBOURNE EXPERIENCE
Mr Donald’s years with Port of Melbourne
are well documented and he believes this
experience is positive given that port’s role
in Tasmania’s maritime trade.
INTERNATIONAL CONTAINER
TERMINAL FOR BURNIE
While Burnie has been a vital port for
years, in 2015 much was made of a
memorandum-of-understanding between
TasPorts and DPWA about plans for an
international container terminal at the
Anthony Donald, CEO, TasPorts
“I thoroughly enjoyed my time at the
Port of Melbourne Corporation and
learned a significant amount about ports
generally and about customer relationships
and infrastructure project delivery.
“Some of the customers we have today...
are customers of the Port of Melbourne. I
Bass Strait terminal.
That MOU has lapsed but Mr Donald is far from throwing in
the towel on the concept even as others have doubted its viability
– former ANL executive Tom Holyman (now with Kalmar) used a
shippers’ forum last year to say it would never be built.
“We remain in contact with DPWA. All that has happened is the
MOU we had in place with DPWA has elapsed (October last year),”
Mr Donald says.
“One of the benefits [the MOU] provided DPWA was exclusivity.
have the benefit of knowing a little about their operations from a
number of different perspectives which I think is helpful,” he says.
“Also about looking at what is possible in terms of larger
investment and larger projects.
“I don’t think for a moment we are on the brink of the Webb
Dock redevelopment project that I led the infrastructure delivery
on, but I think that with a project like that you get to understand
some of the issues and risks and certainly some of those ‘learnings’
you get to take forward.”
Notwithstanding that, we still have maintained contact with DP
World. I have stated publicly and happy to say so again we have had
interest from others.”
He talks of a possible “staged development” with containers and
bulk commodities.
“One of the challenges and complexities is getting the right
vessel size,” he says.
“We think there is an opportunity, if we can use the same berth
for two commodities, then our utilisation is going to go up.
“It is more likely that our business case for dredging will be
positive and that would enable us to move into an environment
OTHER INFRASTRUCTURE
Mr Donald is also excited about other infrastructure upgrades for
the new TT-Line/Spirit of Tasmania vessels (Devonport), the new
SeaRoad vessel and a new Australian Antarctic Division vessel set
to be delivered at Hobart.
SeaRoad brought in its impressive Searoad Mersey II vessel two
years ago and plans are in place for a new sister vessel to replace the
aging Searoad Tamar.
“So those critical upgrades at our project delivery team are welladvanced
in their planning and preparation,” he says.
Spirit of Tasmania Searoad Tamar Tasmanian Achiever II Frisia Aller John Duigan
FACT BOX SOME KEY SHIPS SERVICING TASMANIA
TT-LINE
SEAROAD
Two Spirit of Tasmania
ro-pax vessels, carrying
vehicles, freight and
people between
Devonport and
Melbourne.
Searoad Mersey II
(182 metres) and the
Searoad Tamar (135
metres), ro-ro cargo
ships that move freight
between Devonport and
Melbourne; the latter is
set for replacement.
TOLL
Tasmanian Achiever II
and the Victorian
Reliance II; new 210-
metre ro-ro vessels that
began operations early
in 2019; they move
freight between Burnie
and Melbourne.
MSC
Frisia Aller a 147-metre
general cargo ship and
Charlie B a 161-metre
container ship, vessels
that link Bell Bay with
Sydney, Brisbane and
Noumea via a weekly
service.
BASS ISLAND LINE
John Duigan, an 80-metre
barge that links King
Island in Bass Strait with
mainland Tasmania.
thedcn.com.au August 2019 43

MARITIME CYBERSECURITY
44 August 2019
thedcn.com.au

Cyber
protection
at port & sea
Iain Sharples from Zurich Financial Services looks
at the new wave of digital pirates and how transport
companies can form their own lines of cyber defence
Cyber insurance is a rapidly developing sector of the insurance
market, fraught with a lack of historical data and examples that
make it almost impossible to predict the nature and impact of
attacks. It gets even more complex with marine and transport
providers in a global network where attackers can have a greater
impact in an extremely short period of time and can go undetected
until the damage is done.
DOUBLE-EDGED TECHNOLOGY
Automation has definitely helped with the risk profiling,
management and operations of businesses in the transport
industry. Having fewer people onsite at container terminals is
an obvious example – resulting in fewer bodily injury losses and
private property damage to ships and cargo. This benefits the
businesses themselves and their insurers.
However, increased dependence on technology brings a new raft
of risks. Every large piece of equipment (including ships, landbased
equipment, trucks, trains and drones) depends to a greater
or lesser degree on technology for its maintenance and operation,
and a malfunction (whether by human error, a coding error or a
malicious cyber attack) can have catastrophic effects.
A SPECIFIC FOCUS ON SHIPS AND EQUIPMENT
Automated cargo handling equipment and ships present an
opportunity for cyber attackers to take over control remotely. The
result could be significant damage to the equipment or ship, other
assets as well as third party property and bodily injury.
As marine insurers, there are a few obvious areas we look at to
ensure a customer has adequate cyber protection for their port and
terminal equipment. At a basic level this includes asking:
• How is the equipment connected to other systems e.g. wired,
wireless, over the web?
• What is the approach to software patches and maintenance on
equipment?
• What is the security information and event management (SIEM)
approach to specific pieces of technology to ensure incidents are
tracked properly?
If a company has a large piece of equipment that’s autonomous
and web-based, whether it is a vessel or terminal equipment,
it needs to have its own security and maintenance schedule to
regularly test for vulnerabilities. It is important to be able to
demonstrate that they’re monitoring when the system is accessed
(and by whom) and that they have measures in place to protect
against any possible cyber attack.
VULNERABILITIES CAN BE TINY
Even small transactions must be monitored. In 2013, cyber
attackers used phishing and malware attacks to transport
250 kilograms of cocaine through a delivery of bananas to a
Rotterdam terminal. The hackers gained access to the system
and redirected the cargo to their own location rather than the
intended delivery address.
There could be liabilities and exposure to penalties from
authorities that attach to similar events. Companies will need to be
able to demonstrate they have taken a reasonable approach to cyber
security with adequate plans and processes in place.
Polygraphus
CYBER PROTECTION BASICS
All marine and transport businesses should protect themselves
from cyber attacks. Without it, they can stand to lose a great deal
financially if they fall victim to an attack and it can take years to
recover from reputational damage or other factors, for example
environmental pollution through system failures.
It is important to get the basics right. These include keeping
firewalls and antivirus software updated; identifying vulnerabilities
across the business; understanding the weak points within each
department; and writing a cyber defence policy, including processes
to lock off parts of the business in the event of an attack.
Employees and contractors are a business’s greatest line of cyber
defence. It’s vital to remember that cyber security is about people,
not technology. Every cyber attacker has infiltrated the system
because an insider has let them in – through a USB key, a phishing
email, or by clicking on a fraudulent link.
Regular training for anyone who can access the technology
network will help to identify potentially fraudulent activity. A strict
internal policy around third-party data can help protect suppliers’
and customers’ data, as well as the business’s own information.
FIND AN INSURER WHO UNDERSTANDS CYBER RISKS
Insurers can help protect businesses who have set up internal cyber
protection systems, although not all insurers will offer the right
type of insurance for companies in the transport chain. Insurers
will often also provide support services such as risk management to
ensure good cyber protection is in place and emergency response in
the event of a cyber attack or failure.
Most cyber insurance cover will address first-party losses but
won’t make any provisions for third-party damages across the
supply chain in the event of an attack. For example, traditional
marine insurance policies have a standard cyber exclusion.
Shipping operators should work with their broker to find an
insurance provider who has a good understanding of what the
cyber impact can be.
START FROM THE INSIDE
All cyber defence and cyber attacks start from within, which
is why it is so important to get internal policies right first. Get
every relevant department on board. Leverage in-house expertise.
Work with the employees who know the systems inside out and
thedcn.com.au August 2019 45

MARITIME CYBERSECURITY
THE DIGITAL DIFFERENCE IN
MARINE AND TRANSPORT
There are several factors that make marine
and transport different from many other types of
businesses:
• Multiple partners across a single network - Dealing
with operators across a global network can expose
businesses to multiple jurisdictions, regulations,
requirements and expectations across a range of
companies.
• Interdependence - A lot of countries depend heavily
on their domestic and international transport
systems across road, rail, sea, and air, and failure at
any point can bring down the supply of goods.
• Real-world, daily impacts - Many of the goods and
products shipped around the world are needed by
recipient countries because they can’t produce them
at affordable rates (if at all). If goods don’t arrive
safely then there’s just no stock on shelves, and that
impacts the end customer.
• Large equipment - As with the air industry, the use of
very large equipment in shipping poses a significant
risk, especially as technology is used a lot to move,
monitor and navigate equipment and vessels.
• Accumulation risk - Cyber attacks present a
previously unheralded level of accumulation risk.
For example, a fire on a ship can create a very large
loss but the combination of values involved is finite.
However, a single cyber attack event could impact
multiple companies, ships, cargoes and terminals.
This accumulation effect makes it very difficult to
estimate potential losses.
encourage them to think creatively about the ways hackers
might infiltrate the system.
Insurers will work with businesses to try and protect them,
but availability and cost of insurance is always better if a
business shows they’ve done all they can to avoid risks and
manage them if an attack occurs.
Most businesses can benefit from seeking the advice of
experts. A small investment in the right type of advice can go
a long way to protecting the business and third parties from
the types of attacks we’ve seen before and will continue to see
as automation and technology take an even greater hold of the
marine industry.
Iain Sharples, national manager
marine and transport liability,
Zurich Financial Services Australia
The rising tide
of cyber risk
& the cost of
privacy breaches
Matt Ellis from Norton Rose Fulbright looks at an
area of increasing cyber risk that should be on the
maritime radar - the expansion of protections of
individual privacy
The maritime sector is embracing new technology at an
unprecedented pace, with advancements in automation,
system inter-connectivity and data analytics all delivering
new efficiencies and innovations across the shipping, ports
and logistics industries. Yet harnessing modern technological
advancements comes with it the growing threat of criminal
activity targeting data and systems.
These ‘cyber’ threats have already caused highly publicised
and significant losses in the maritime sector – from incidents
at major ports to crippling systems and the theft of sensitive
commercial data.
One area of increasing cyber risk that should be on the
maritime radar surrounds the expansion of protections of
individual privacy, and particularly, the expanding legal
protections over citizens’ personal information.
Around the globe, jurisdictions have been expanding privacy
legislation with the aim of ensuring organisations that use and
hold personal information adopt appropriate safeguards for the
protection of that information, and are otherwise required to notify
individuals and authorities where that privacy has been breached.
AUSTRALIA’S RESPONSE
In Australia, a mandatory data breach notification obligation was
introduced in February 2018 under the notifiable data breach
scheme (the NDB scheme). Shortly afterwards, the General Data
Protection Regulation was adopted by the European Union in
May 2018, introducing mandatory notification requirements and
very significant penalties for breach.
We have seen in recent times penalties in excess of A$300m
handed down under the GDPR and a significant increase
in penalties under the Australian regime is imminent. Yet
organisations need to appreciate not only the risk of penalties
(and for cross-border breaches, the risk of penalties in more than
one jurisdiction), but also the cost of compliance with mandatory
notification procedures, and the direct or indirect impact on the
business including the risk of significant reputational harm that
may flow from adverse media or ill-conceived public relations
responses to large scale privacy breaches.
Zurich Financial Services Aust
46 August 2019
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MARITIME CYBERSECURITY
Published data over recent years suggests that these direct and
indirect costs of a significant hacking event can be in the millions
of dollars.
Organisations also need to appreciate that where there has been,
or there is suspected to have been, unauthorised access to their
system, then the NDB scheme and foreign equivalents may apply
even where personal information does not appear to be the primary
target of the event.
NDB SCHEME
In May this year, the Office of the Australian Information
Commissioner released a report reviewing the first 12 months
in the life of the NDB scheme which provided some compelling
insights into the rising risk of cyber security threats, and some
important lessons for organisations.
The OAIC has reported there were 964 eligible data breaches in
that period, the vast majority of which were relatively small events,
where affected individuals numbered less than 1000 (83%). Of the
eligible data breaches, 60% were of a malicious nature and 35%
were attributed to human error (the remaining 5% being attributed
to system faults). The vast majority of the malicious events involved
compromised or stolen credentials, enabling third parties to access
email accounts or systems.
VALUABLE LESSONS
There are some valuable lessons that can be drawn from those
statistics. Firstly, over a third of all incidents are the result of
human error, and human error can be reduced by appropriate
training and employee guidelines. Ensuring employees follow IT
security procedures, and providing comprehensive training will go
a long way to reducing that risk.
Similarly, the prevalence of incidents arising from stolen
credentials is a lesson in the importance of adopting simple but
effective IT security procedures for staff – regularly changing
passwords and dual-factor authentication would have prevented
many of the reported incidents, we suspect.
More targeted and sophisticated attacks will remain a risk, and
appropriate level of cyber resilience (including a properly prepared
data breach response plan and cyber insurance should be in place
to manage and respond to such risks), but the starting point should
be employee engagement and training.
The best cyber resilience practices start with all employees
understanding that their inadvertent actions, like clicking on a
bogus link or responding to a fake email, are the greatest risk to
your business.
Matt Ellis, insurance partner and
co-head of Norton Rose Fulbright’s
cyber insurance and incident
response practice in Australia
Global shipping makes
the connection on
cybersecurity
Whether in pursuit of personal data or money,
cybercrime is now a big and highly automated
business, ready to strike at the most vulnerable
part of an organisation’s defences 24/7, writes
Inmarsat’s Peter Broadhurst
Speaking on a panel at the World Economic Forum earlier
this year, A.P. Møller-Maersk chairman Jim Hagemann Snabe
revealed that responding to the NotPetya ransomware attack of
June 2017 had required the reinstallation of 4000 new servers,
45,000 new PCs, and 2500 applications, all within ten days.
During this period, the company reverted to manual systems.
In hitting a company equipped with experienced cybersecurity
specialists, NotPetya showed the cyber threat is as real for
shipping as it is for any other connected business, especially
where legacy systems proliferate.
THE STATE OF IOT-BASED SOLUTIONS
If the warning should be sinking in, an Inmarsat research
program report, The Industrial IoT on land and at sea suggests
maritime minds are slow to change. The unique study drew
on testimony from 750 survey respondents across a range of
industries to establish preparedness and perceptions regarding
the adoption of IoT-based solutions.
The survey found 87% of maritime respondents saying they
believed their cybersecurity arrangements could be improved. It
also saw more of them identifying data storage methods (55%),
poor network security (50%) and potential mishandling/misuse
of data (44%) as likely to lead to breaches in cybersecurity than
outright cyberattack (39%).
Given the self-diagnosis, it is perhaps surprising to find just
25% of maritime respondents said they were working on new IoTbased
security policies.
In fact, Inmarsat’s research exposed ambivalence as one of
shipping’s leading feelings towards IoT-based solutions. With
some owners engaging at the level of blockchain, others take
their lead from their need to comply with regulation: this is
an industry which simultaneously sustains just over 30% of
shipping respondents as ‘IoT leaders’ and just under 30% as ‘IoT
laggards’, the report says.
For every owner signed up to the benefits of condition-based
monitoring and predictive maintenance based on real-time
connectivity, there appears to be another for whom maintenance
is something that takes place at regular and predictable intervals,
or whenever is most convenient.
Inconsistent views on cybersecurity also appear free to coexist
with immature ones. Around 70% of respondents identify
reducing marine insurance premiums as a main driver for
Norton Rose Fulbright
48 August 2019
thedcn.com.au

IoT uptake, where insurers have shown themselves as especially
sensitive to cyber threats. At the same time, other studies have
found attitudes such as “I’m not the target; we have security in
place, don’t we?” or “I will be protected by anti-virus”.
NOT JUST ABOUT SOFTWARE
For those prepared to engage in the IoT, ships today sustain crews
in small numbers, representing both an opportunity and challenge
for automation, and indeed for cybersecurity. On the one hand,
low crew numbers align strongly with operational technology that
is remotely updated, self-managing and supported by automated
security and from third parties and OEMs, such as voyage
planning, weather routing, navigation, fuel management, etc. On
the other hand, the opportunities to ‘patch’ embedded operational
technologies safely are not frequent, and patches usually require
certification by control system manufacturers.
The broader point, though, is that cybersecurity is not just about
software patching and systems configuration. Ship operators do
not buy computer processors, disk storage and software and then
build them into a system: they procure turnkey systems. Again,
shipboard engineers may well be IT-literate, but no space has been
made on the crew roster for cybersecurity specialists.
In these circumstances, the integrity of the systems on ships
is best maintained by software which can identify, contain and
resolve threats wherever they appear in the network. Such Unified
Threat Management detects all deviations from the ‘known good’
configuration as anomalies and potential threats to security
and can update securely, even during operation. Some specialist
functions such as a deep analysis of alerts or security forensics will
need to be delivered remotely.
COLLABORATIVE APPROACH
Inmarsat believes a collaborative approach - that includes shipboard
systems, but also the crew operating them and the processes
involved - is vital to develop the mature response demanded by
multiple threats from cyber villains. For this reason, we have been
working with some of the best security-focused experts available to
tailor products and services to meet shipping’s requirement.
Inmarsat’s work with Singtel cybersecurity subsidiary, Trustwave,
for example, has brought Fleet Secure into the industry as the first
independent service designed to detect vulnerabilities, provide
alerts, respond to threats and protect ships from cyber-attack. In
fact, Fleet Secure is an urchin traffic module, or UTM, available
without additional outlay on hardware, which also has no impact
on contracted bandwidth. It can identify external attacks through
high-speed broadband connectivity, including malware introduced
Inmarsat Network Operations Centre
accidentally to the ship’s local area network. It then isolates that
part of the operating system infected to prevent wider disruption.
As noted, however, software is only part of the answer:
cybersecurity and vigilance for ‘the human element’ and a well
thought-out recovery strategy to mitigate against multiple,
automated assaults are also critical. Failures in processes and
mistakes by people can present the security loophole that, if
unchecked by the UTM, compromise the entire network.
Weaknesses at the first line of defence (to phishing, plugging
infected USB in, downloading from untrusted source etc.)
are common but, in the case of satellite-connected ships, it is
also common to see updates turned off and no AV software in
operation. Today, cybersecurity training is not compulsory for the
world’s 1.6m seafarers, while expertise in antivirus software is
inevitably more likely to be based ashore.
FIRST LINE OF DEFENCE
As far as awareness is concerned, it is fair to say there is likely to
be more temptation to risk plugging in a memory stick that might
be infected once a vessel is under way. Creating awareness for
seafarers and staff is a continuous task because good cybersecurity
practice is shipping’s first line of defence against ‘attack’.
Inmarsat recently participated in discussions with academics
at the World Maritime University in Malmö over what future
classroom-based and e-learning cybersecurity course content might
include for Maritime Safety and Security Diploma students.
Inmarsat is not and does not aspire to be a training company,
but it is an interested party. As such, we are fully aware that
training is not just a tick box exercise and must be backed up with
monitoring and reinforcement. We also know that using tools to
identify breaches of policies such as USB usage help reinforce the
message: constant reminders and real-life examples are often the
quickest ways to stop bad practice.
Inmarsat
Peter Broadhurst, senior vice
president of safety and security,
Inmarsat Maritime
TRAINING AND AWARENESS
There is no doubt digitalisation and new smart technologies are
transforming ship operation at an exponential pace but Inmarsat’s
view is that, to accelerate this transformation, all stakeholders
interested in optimising the efficiency of ships and crew welfare
must exert themselves if the industry is to be carried over the line.
This means we must not only be training our seafarers more
effectively, better managing our processes and protecting our
systems, but nurturing awareness of best cybersecurity practice
even on vessels that have little or no cybersecurity protection at all.
Clearly, there is a long way to go.
thedcn.com.au August 2019 49

MARITIME CYBERSECURITY
Cyber crime
in the shipping
industry
Daily Cargo News speaks to DNV GL’s Olav
Haugehåtveit about why the industry should consider
the threat of cyber attack when drawing up risk
management strategies for shipping and offshore
What kinds of cyber attacks is the shipping industry facing?
Unfortunately, there is little transparency about the types of
cyber attacks that have been encountered by the industry because
the affected parties like to keep it to themselves since it could
be harmful to their business. However, a typical incident is, for
instance, if there is a vendor or supplier going on board to install
updates and upgrades on the system, they can inadvertently install
a computer virus. Also, if they update software through remote
access, some of the software being transferred could contain
damaging code. Similarly, software installed remotely from the
shore could contain malware. For example, not long ago a cruise
vessel received an update to its electronic chart display and
information system which contained malware that spread to the
propulsion system of the vessel and disabled it.
Do you know what types of technologies have been
developed in the shipping industry to try to tackle cyber
attacks?
I do not think owners have developed or invested in that sense, they
mostly buy services from the suppliers or third parties that have the
capabilities to detect such problems and intervene. They also buy
services from companies that are experts in handling such incidents.
How are the shipping insurance sector and P&I clubs
responding to cyber threats?
First of all, everybody has to be aware that P&I usually does not
cover damage from cybercrime. However, some insurers have a
clause which they call “380 buy-back”. It covers physical damage
to a ship due to malicious cyber attacks. What we have seen so
far from many insurance companies is that they are interested
in creating awareness among shipowners and other stakeholders.
DNV GL and Gard, for example, have joined forces to produce
cybersecurity best practices for crew and onshore personnel.
Do you think cybersecurity in shipping will evolve to become
a special segment on its own so the topic will receive more
attention?
Yes, I definitely think so. Shipping is a large industry and newbuild
vessels are already utilising sophisticated software systems. The
more complex software systems are, the bigger is the risk of being
hit by malware or other attacks of some sort. So I definitely see this
happening in the industry. A new risk window is opening up and
we need to deal with that.
What’s the rationale behind cyber attacks?
In terms of the future of cyber risk, I would assume the people who
are engaging in cyber attacks are very money-focused. If they see
a possibility to blackmail big shipping companies, they will do it.
But there are also people who do this for fun. If they succeed in
disrupting a major industry player, they get credit for it within their
hacker community.
Is shipping well enough prepared to cope with this risk?
The industry takes cyber threats very seriously, because we can see
the IMO is on board. They have issued a circular where flag states
are encouraged to urgently ensure that cybersecurity is addressed
as part of shipowners’ safety management systems by January 1,
2021. The classification societies are likewise coming up with their
own services on this topic, such as the cyber secure class notations
issued by DNV GL recently.
How vulnerable do you think autonomous shipping might be
to cyber attacks?
It will be exposed to a higher risk because complex vessels strongly
rely on software and complex algorithms. Presumably there will be
Agsaz
50 August 2019
thedcn.com.au

emote access to a lot of these vessels to monitor what is going on
from the operational centre. Introducing these vessels will increase
the risk of cyber attacks compared with the traditional ships we
have today. But when we talk about autonomous ships we do not
necessarily mean unmanned vessels. There might be autonomous
technology and remote control on board but a crew in most cases
still will be present.
Are there any cybersecurity laws for shipping or are there
any requirements companies need to meet in terms of
cybersecurity?
There aren’t many requirements as yet. As mentioned, the IMO
is urging administrations to ensure cybersecurity is addressed in
existing safety management systems as defined in the ISM Code.
Not long ago, the United Kingdom Department for Transport
published a code of practice on cybersecurity for ships and the
United States government and the US Coast Guard has done the
same. Some other organisations are thinking about it and are
trying to issue guidelines and possibly laws in the future. But for
now, there isn’t much concrete regulation on this topic.
I think the whole industry will go through a learning curve: as
we try to address it we will acquire experience and eventually know
how to deal with it most effectively. It is only then that passing
legislation will make sense. Technology is always first and then
regulation kicks in.
How do you think cybersecurity efforts can be integrated in
the budgets, the corporate culture and the business plans of
shipowners?
It is too early to tell. I do not know the exact figure but my
Olav Haugehåtveit, senior
engineer for control systems,
DNV GL
impression is that shipowners are now realising the extent of
current cyber threats. These are an addition to the overall risk
picture that needs to be dealt with. There are different ways to do
so. We see large owners establishing entire departments to establish
a minimum baseline to address this topic. The main drivers for
investment in cybersecurity are definitely an increase in incidents
as well as financial concerns, since more and more charterers
demand a safety net when hiring a vessel.
What area of shipping is more vulnerable to cyber attacks
and why?
This is difficult to answer because it will all depend on what an
attacker’s objective is. It could be like NotPetya, where the attack
was very harmful to port operations. Another example could be
interference with the operation of an offshore drilling rig. It is very
difficult to predict vulnerabilities because all shipping segments are
vulnerable to some extent.
Image supplied
ASSESSING CYBER SECURITY RISKS IS DOUBLY IMPERATIVE
Several flag states have given ship managers and owners
until January 1, 2021 to ensure cyber risk is firmly integrated
into their safety management systems. The related IMO rules
apply to vessels in all segments, including tankers.
IMO first addressed the subject in 2016 in the form of
high-level guidelines (MSC.1-Circ.1526), which encouraged but
stopped short of compelling owners to assess the vulnerability
of information and digital control systems to cyber threats.
Since then a spate of incidents – most notably the NotPetya
ransomware attack on Maersk – have driven home the
reality and magnitude of the problem and spurred industry
associations such as BIMCO and DNV GL as well as a number
of flag state authorities to produce best-practice guides and
recommendations.
Then in June 2017, in a resolution adopted by the Maritime
Safety Committee (MSC98), IMO recommended “that an
approved safety management system should take into account
cyber risk management in accordance with the objectives and
functional requirements of the ISM Code”. Many flag states
have made that resolution mandatory for their vessels, which
leaves affected ship owners with no other option than to
address cyber risks through their SMS.
Dealing with cyber security will be a daunting task for many
shipping companies. However, tanker owners should be at
an advantage thanks to TMSA3, which inserted cyber risk
management into its list of vetting requirements.
IDENTIFYING AND DOCUMENTING CYBER RISKS
Owners now have to ensure work done for TMSA is carried out
across, and fully documented in, their SMS. Auditors will be
looking out for evidence when they come on board for their
first ISM inspection in 2021.
In comparison with TMSA, ISM is somewhat less prescriptive.
It does not, for example, provide a list of requirements – such
as crew awareness training, response plan, patch management
etc. – that can be ticked off.
The onus is on owners to both define requirements and
describe actions taken to meet them.
The ISM Code requires:
commitment from the top of the organisation down;
• that procedures during normal operation and in emergency
situations are documented;
• a methodology for conducting audits to ensure that these
procedures are being adhered to;
• a designated person ashore to serve as a link between
ship and shore staff and to check that the SMS is being
implemented;
• a process for identifying implementation gaps.
Tanker owners now have a double imperative to identify
weaknesses and put safeguards and mitigations in place to
minimise their exposure to cyber risk and, from a compliance
perspective, to ensure these actions are properly documented.
thedcn.com.au August 2019 51

MARITIME LAW
IMO 2020 global sulphur cap
and the Australian context
Nic van der Reyden and Naraya Lamart of HFW examine the implications
of IMO fuel sulphur content rules
A 2008 AMENDMENT TO ANNEX VI
of the International Convention for the
Prevention of Pollution from Ships 1973 as
modified by the Protocol of 1978 (together
MARPOL) saw the International Maritime
Organization adopt a new global cap for
sulphur content in ship’s fuel oil of 0.5%,
which is to come into force on January
1, 2020. This is a significant reduction
from the previous cap of 3.5% and will
be implemented in Australia through the
Protection of the Sea (Prevention of Pollution
from Ships) Act 1983.
As the implementation date draws near,
the shipping world is still grappling with
some of the implications.
SUPPLY - IS THERE ENOUGH AND HOW
MUCH WILL IT COST?
Perhaps the most frequently discussed issue
is whether there is going to be sufficient
supply of low sulphur fuel oil, particularly
in more remote regions, which would
include Australia, due to Australia’s limited
refining capacity and reliance on imported
LSFO. It is also unclear whether refineries
are prepared to prioritise production of
LSFO and indeed whether they have the
capacity to deal with production and
storage as well as the logistical capabilities
to deliver LSFO to ports and terminals
around Australia.
Local operators have been stockpiling
LSFO to supply domestic vessels but many
in the industry are questioning whether
there will be enough LSFO to supply both
vessels operating in Australia and those
departing on international voyages. When
considering Australia’s present freight task
and its predicted growth in the next five
years there is a justifiable concern as to
whether there will be enough LSFO to meet
demand on January 1, 2020 and in the
years to come.
The increase in the cost of feedstock
that refineries use to produce LSFO as well
as supply constraints will no doubt have
an impact upon fuel pricing. Some predict
this will increase the cost of fuel by $200+
per tonne, which, of course, will increase
the price of transporting goods by sea.
For a country such as Australia, where
Nic van der Reyden, partner, HFW
52 August 2019
thedcn.com.au

Naraya Lamart, senior associate, HFW
This is taking place in the context of a
Swedish study claiming that wastewater
from scrubber systems is harmful to
marine life.
In a recent study Clarksons estimated
that more than 10% of the world
fleet will have scrubbers fitted by the
implementation date. That being so,
it should further amplify owners’ and
operators’ concerns about the availability
of LSFO and the need to ensure their
contractual “houses” are in order.
ENFORCEMENT IN AUSTRALIA
In Australia, the sulphur content of fuel will
be monitored by the Australian Maritime
Safety Authority as part of its port state
control inspection regime. An AMSA
submission in March 2019 on the policy,
enforcement areas such as for cruise
ships in Sydney Harbour. If that approach
is adopted, AMSA, in the event of noncompliance,
is likely to take into account
factors such as:
• unforeseen and uncontrolled
mechanical or equipment failure;
unavailability of non-compliant fuel;
• unexpected delays in departure beyond
the reasonable control of the master;
• an unscheduled berthing due to an
emergency;
likely duration of non-compliance;
• sulphur content of the fuel being used or
proposed to be used.
Interestingly, there is no indication as
to whether AMSA will look at the scrubber
system used to measure the impact of any
wastewater discharge.
HFW; Alexey Lesik; Natasha Pankina
There is a justifiable concern as to whether there
will be enough LSFO to meet demand on January 1,
2020 and in the years to come.
upwards of 98% of its trade is transported
by sea, there is scope for potential broader
economic ramifications as the increased
costs of moving goods by sea works its way
through the supply chain to consumers.
SCRUBBERS
One of the alternatives to using LSFO is
for shipowners to retrofit their vessels with
exhaust gas cleaning systems (known as
scrubbers) to remove the sulphur from
exhaust emissions. This option is not
without controversy, however, and some of
the issues relating to scrubber use include:
• the upfront expense of fitting the
scrubbers, which is not insignificant;
• the cost of having the ship out of service
whilst scrubbers are fitted;
• underlying charter party considerations,
including whether the ship will be
offhire during any fitting (some
estimates suggest that world’s merchant
fleet supply could be reduced by up to
1.4% across 2019 on an annualised
basis); and
• environmental concerns regarding
disposal of the wastewater created by
scrubbers in the cleaning process. At
present there are no bans on discharge of
this waste water, however, the CSIRO is
studying the impacts of such discharge.
regulatory, taxation, administrative and
funding priorities for Australian shipping
indicates that it is considering a number of
enforcement frameworks and monitoring
tools, including hand-held analysers.
While there is no formal publication
available as to how AMSA proposes to
approach its enforcement role at
this stage, it is likely to
take a similar approach
to that taken in special
NEW CLAUSES FROM BIMCO
CONTRACTUAL CONSIDERATIONS
There are a myriad of potential contractual
challenges for owners, charterers and
operators arising in the context of
chartering and operating vessels. It would
be prudent to draft appropriate clauses,
for example, which deal with instances of
offhire due to scrubber fitting or breakdown
(as referred to above), bunker delivery and
re-delivery clauses concerning the type of
fuel onboard, liability for removal of noncompliant
fuel and liability regarding the
condition and maintenance of scrubbers.
In addition to the clauses suggested by
BIMCO (see box), there are many other
clauses, such as liability allocation for
environmental implications that should be
carefully reviewed in readiness for
the implementation date.
International shipping association BIMCO has, in an attempt to deal with some
of the more specific issues relating to the requirements to actually comply with the
new sulphur content cap of 0.5%, published two new standard clauses as follows:
The Marine Sulphur Content Clause requires charterers to supply fuel that
complies with both the sulphur content regulations and is otherwise compliant
with the specifications and grades as provided for in the charter party. Under that
clause, it is owners who warrant that the ship can comply with the sulphur content
requirements, which are defined to include the MARPOL Annex VI requirements
“as amended from time to time”. This clause should, if incorporated in a charter
party today, ensure the new sulphur cap is automatically incorporated following the
implementation date.
The Fuel Transition Clause covers the transitional period between high and low
sulphur fuels. It requires charterers to supply ships with sufficient LSFO onboard
prior to the January 1, 2020 deadline to allow that ship to reach the nearest port
where LSFO is available. It also requires owners and charterers to use “reasonable
endeavours” to ensure that no high sulphur fuel is carried on board.
thedcn.com.au August 2019 53

TRADE LAW
The ABF announces
new initiative building
on an old concept
Andrew Hudson examines possible “customs” changes
within the Department of Home Affairs
THE START OF A NEW FINANCIAL
year is often used by the business
community to launch new initiatives into
the market. However, in this case, by media
release on July 1, 2019, the Australian
Border Force as a division within the
Department of Home Affairs provided
details of the establishment of a new
“customs group” within the ABF.
Of course, the term “customs” has
been with us as a Commonwealth
agency since Federation and our customs
legislation was one of the initial pieces of
federal legislation adopted at Federation
as Act number 5 of 1901. Even before
Federation, each of the colonies had its own
customs legislation and administration
drawn from the English model. That made
for some interesting issues, including
for the movement of goods between the
colonies which explains many of the
customs buildings at river crossings as well
as at ports.
HISTORICAL ATTACHMENT
Many of us have a long historical
attachment to the term “customs” and
the associated regime that was in place
for many years. That attachment has been
strained in recent times, starting with the
amalgamation with the Department of
Immigration in the Customs and Border
Protection Service and then the further
change with the creation of the DHA and
the establishment of the ABF as an agency
under the DHA portfolio. Even at that
stage, government had some sensitivity
to the “customs” concept referring to
the ABF as being Australia’s “customs
service” and the creation of the office of
“Comptroller-General of Customs” (also
the commissioner of the DHA).
ATTITUDES TO CHANGE
It is fair to say there was not comprehensive
enthusiasm for the movement away from
the stand-alone “customs” organisation
with confusion on the operations and
boundaries of the DHA and ABF. That
confusion continued with a number of
subsequent restructures of the DHA and
ABF and their respective obligations along
with movements of officers between the
two organisations. The changes also led
to a number of public venues in which the
two organisations needed to work together
including at the International Trade
Remedies Forum, the National Committee
on Trade Facilitation and the various
advisory groups and sub-committees of
both groups.
CONFRONTING SLAVERY AND HUMAN
TRAFFICKING
The creation of the modern slavery and
human trafficking branch is a significant
new move reflecting the increasing
importance of modern slavery issues here
and overseas including Commonwealth and
state legislation in Australia drawing from
similar legislation in other jurisdictions
That confusion continued with a number
of subsequent restructures of the DHA and
ABF and their respective obligations.
Aradaphotography; Giggsy25
54 August 2019
thedcn.com.au

Ian Ackerman
Andrew Hudson, partner, Rigby Cooke Lawyers
and actions to seize the products made
from modern slavery and forced labour
along with the proceeds of businesses
relying on such labour.
Further to these developments, one
of the most interesting comments for
industry from the media release by the ABF
commissioner was that, “This group will
deliver a trade and customs engagement
strategy that I will announce later this year,
focussing on enhancing ABF’s collaboration
with industry in modernising how goods
and people move across Australia’s border
in the future”.
Ever since the establishment of the
DHA and ABF there have been ongoing
questions regarding the co-existence of the
trade and customs activities recognising
that facilitating and regulating trade
may often lead to different outcomes
and consequences. This is why so much
effort by government and industry has
been focussed on facilitating legitimate
trade in an efficient way which does
not detract from necessary protection
against threats to security, revenue,
safety and the national interests. The
inclusion of the reference to “people”
is of additional interest as traditionally,
movement of goods and people have been
handled separately. Industry which deals
with goods and their movement will be
watching to see just how much these two
goals are handled at the same time by
the same people or whether the effective
separation will remain.
ENGAGEMENT STRATEGY
The reference to a “new” engagement
strategy will be keenly awaited by industry
given that the strategy launched in 2015
is due to expire in 2020. At the moment
there are a number of engagement and
advisory bodies between industry and all
of the agencies at the border (including the
DHA, ABF, the Department of Agriculture,
the Anti-Dumping Commission and other
agencies). This contributes to concerns
on duplication of effort and work falling
between the various engagement bodies
and also creates significant additional
work for those from industry involved
with that work.
FINAL THOUGHTS
It’s that the work will be confined to the
operations of the DHA and ABF which
leaves open the issue of rationalisation
or fundamental restructure of the
existing regime including the NCTF and
its various advisory groups especially
as the current chair of the NCTF will
be leaving that role. That would raise a
number of wider concerns both for those
currently engaged at that level as well as
for Australia’s compliance with the WTO
Trade Facilitation Agreement which led to
the creation of the NCTF. I certainly believe
there are means to improve the engagement
and hope industry is also directly engaged
with the strategy in a meaningful way to
best secure results from those interested in
the engagement and the agenda.
STRENGTHENING
AUSTRALIA’S
CUSTOMS SERVICE
While there has always been
ongoing reform of the role of the
ABF, the media release of July 1, 2019
entitled “Strengthening Australia’s
Customs Service” certainly attracted
industry attention as there had
been none of the usual expectation
of the announcement. The media
release refers to the creation of a
“customs group” in the ABF within
the DHA portfolio.
The media release was short on
detail but did refer to a number of
developments including:
• that the group was to be headed
by deputy comptroller-general of
customs, Dr Bradley Armstrong
PSM who is also the deputy of the
Australian National Committee
on Trade Facilitation;
• that the group will encompass
traveller, trade and customsrelated
policy, and customsrelated
compliance, with a strong
focus on industry engagement;
• the establishment of a modern
slavery and human trafficking
branch in the new group to
address anti-slavery, including
migrant worker exploitation,
through global supply chains;
• that the group will be staffed by a
blended team – with ABF officers
and Home Affairs employees.
The media release claims
that integration will provide
“an immediate and significant
opportunity to better align trade
and customs activities”.
thedcn.com.au August 2019 55

INDUSTRY OPINION
More than just a lick of paint
Dr Brendan McAuliffe argues for using different paints on shipping containers
to improve both environmental and workplace safety outcomes
SINCE FIRST BEING INTRODUCED
to international trade in 1956 the
shipping container has seen a remarkable
increase in importance. In 1968 fewer
than one million containers were shipped
around the world, by 2016 this had
increased to 182m.
More than 90% of items shipped
internationally use shipping containers. The
shipping container has profoundly changed
global trade by facilitating reliable and cheap
transportation of goods. This, in turn, has
had far-reaching consequences. On the
positive side it has driven down the price
of items. On the downside there has been
the environmental impact with an increase
in carbon dioxide emissions. The growth
in the packing and unpacking of shipping
containers has presented hazards to both
employees and employers for example:
• Hazardous fumes – fumigants used for
pest control, off gassing from products
shipped in the containers.
Manual handling – heavy lifting.
• Falling objects – due to shifts in the
contents due to transport, falls of
containers in container stacks.
ELIMINATING HAZARDS
Where a hazard is identified, elimination
is the primary goal. If elimination is
impossible, the hazard must be controlled
as practically as possible to minimise risk to
workers. Safe Work Australia has developed
a series of information sheets to provide
practical guidance for Australian workers to
manage health and safety risks associated
with unpacking shipping containers,
including exposure to hazardous chemicals,
for example fumigants and solvents.
Suggestions by Safe Work Australia to
eliminate or minimise exposure of workers
to hazardous chemicals in shipping
containers include using barriers and
warning signs as well as providing workers
with personal protective equipment.
In 2011, Safe Work Australia conducted
research in Melbourne investigating the
presence of residual chemicals in shipping
containers. They surveyed 76 containers
and found airborne hazardous chemicals in
74 of the 76 containers. The most common
hazardous chemical residues identified
are fumigants and solvents. Toluene
(92.1%) and xylene (73.7%) were the most
commonly identified airborne hazardous
chemicals in the shipping containers tested.
When workers were interviewed during this
research, it was identified those exposed
to the airborne hazardous chemicals were
more likely to report symptoms of memory
loss, asthma, irritation of the eyes, dryness
of the mouth and dryness of the throat.
ADDITIONAL RISKS
In addition to the health effects from
exposure to these chemicals, solvents
are highly flammable and cause fire and
explosion risks when exposed to heat,
sparks or a naked flame. The combined
impact of health effects and fire risks
BENEFITS OF WATER-BASED TECHNOLOGIES
By transitioning from traditional solvent coatings to new, cutting-edge
water-based technologies the shipping container maintenance and repair
industry will benefit from:
• increased workplace health and
fewer worker sick days;
safety;
• lower overall risk profile for the
• reduced risk in the supply chain
work site, reducing insurance;
by not having to handle dangerous
better environmental footprint;
goods in their cargo; • extremely low investment cost.
Natnan Srisuwan
56 August 2019
thedcn.com.au

Hxdyl
associated with solvent-based materials in
shipping containers increases the risk of
sick days and staff turnover, WorkCover
claims, increased insurance risk, specialised
risk and safety training and litigation all of
which are indirect costs.
Promoting better practices and training
of staff to recognise and reduce the
impact of residual chemical exposure
from shipping containers must be a high
priority for empty container parks. This
represents minimisation of risk. However,
consideration must be given to eliminating
airborne hazardous chemicals from
solvent-based paints that are widely used to
upgrade the interior of shipping containers.
HAZARDOUS CHEMICALS IN PAINT
It is a requirement to display notification
of fumigation and a dangerous goods
placard for solvents on the exterior of
shipping containers that alert workers to
potential risks from airborne hazardous
chemicals. It is often overlooked that
the products used to coat the interior of
shipping containers can contribute to off
gassing and subsequent inhalation risks.
Indeed, of the five non-fumigant hazardous
chemicals identified in the Safe Work
Australia research, all are common raw
materials found in solvent based, quick
dry paints used for spraying the interior
walls and ceilings of shipping containers.
Interestingly, it is not required to placard a
container that has had solvent-based paint
sprayed on the interior when the outgassing
of hazardous chemicals from these solvent
based paints, toluene and xylene were the
two most commonly detected airborne
contaminants in shipping containers.
SUSTAINABILITY FOCUS
Over the past decade there has been
increased emphasis on sustainability by the
shipping industry, with a large focus on
emissions reductions and carbon footprint,
for example Maersk Low Carbon Future,
CMA-CGM Corporate Social Responsibility
Policy and IMO 2020. The issues faced by
the shipping industry to make operations
more sustainable and environmentally
friendly are both short-term and longterm
challenges. Long-term challenges
will require significant investment on the
behalf of ship owners, container owners
and port operators. There are some shorterterm
strategies that can be undertaken
affordably to improve sustainability and
worker safety.
WATERBORNE PAINTS
The most immediate strategy is a switch
from solvent-based to waterborne coatings.
The introduction of waterborne coatings
into the container industry first started
back in 2010. Since then the use of
waterborne coatings for the coating of
newbuild containers has been mandatory
from April 2017.
One of the biggest challenges presented
to the container building factories in
switching from solvent-based to waterborne
paints was meeting the application process
criteria, which is more involved for
SAVINGS WITH WATER-BASED PAINTS
There is no significant cost associated with a shift from solvent-based to
water-based coatings. Indeed, initial trials indicate that there are many direct
and indirect cost savings associated with the use of water-based paints for
container maintenance and repair including:
• up to 30% reduction (litreage) in
material used;
• no purchasing of additional solvents
or waste solvent disposal;
• reduced costs for DG transport,
storage and compliance;
•
reduction/elimination in PPE and
health and safety costs;
•
elimination of protected equipment
requirements (flameproof tooling,
hoists, lighting).
Dr Brendan
McAuliffe is
managing director
at Aquio*. He has a
PhD in psychology
from the University
of Queensland
waterborne than for solvent-based.
Solvent-based paints were used in the
container manufacturing industry for a
reason: they are far easier to apply and
more forgiving if there are shortcomings
in the application process and more
tolerant of cold weather. It was noted there
were significant costs associated with
switching from solvent-based to waterborne
application processes for container
manufacturers, including additional
heating, venting and dehumidification,
there was an increase in power
consumption of up to 60% to facilitate the
use of waterborne coatings.
SOLVENT-BASED ENAMEL PAINTS
Trends in the paint industry indicate that
since the early 1990s solvent-based enamel
paints have been banned in Europe in
architectural coatings, however, they are
still used in Australia today. By 2000 low
VOC architectural coatings had become
mainstream. By 2010 the benefits of low
VOC and ultra-low VOC paints are being
recognised in the architectural sector.
While these benefits are applicable to
water-based industrial coatings, like those
that could be used on shipping containers,
this transition has not occurred on a large
scale in Australia with a focus on fast
turnaround which is achieved using fast
evaporating solvents.
The use of water-based coatings
in the Australian shipping container
maintenance and repair industry should
be investigated with priority to improve
health and safety for workers charged
with carrying out upgrades, reducing the
risk of exposure to solvent-based airborne
hazardous chemicals. On top of this
there are the associated environmental
benefits that help shipping lines meet
their environmental policy targets as
well as meeting consumer preferences for
sustainable products and services.
* Dr Brendan McAuliffe has a commercial
interest in water-based coatings.
thedcn.com.au August 2019 57

INDUSTRY OPINION
Trucks at the in-gate
facility, Honiara
Pacific potential
Maritime and logistics analyst Peter van Duyn journeyed north to attend
a logistics workshop in the Solomon Islands. Here is what he learned.
I RECENTLY HAD THE PRIVILEGE OF
The program was established to leverage
experienced in IT connectivity in the Pacific,
being invited to participate in the Pacific
existing connections, assets and expertise
tech start-up owners and representatives of
Connect Dialogue on Freight and Logistics
for new development opportunities.
agribusinesses, freight forwarders and finance.
workshop held in Honiara, Solomon
Islands. Pacific Connect, managed by
HONIARA DIALOGUE
EXPORTS FROM HONIARA
the International Centre for Democratic
One of the aims of the Honiara Dialogue
At a networking dinner the night before the
Partnerships, is a program funded by the
was to consider the opportunity for
workshop, Jeremiah Manele, SI minister for
Australian Department of Foreign Affairs
providing a ‘less than container load’
foreign affairs and external trade, gave the
and Trade which operates across our
freight service out of Honiara using one
keynote address with senior representatives
Pacific neighbours and is designed to bring
of the regular shipping lines so smaller
of the Australian High Commission in
together small groups of Pacific Islanders
(mainly agricultural) exporters can reach
Honiara in attendance. The following day a
and Australian equivalents to network and
overseas markets for products such as
lively discussion took place on the challenges
explore opportunities.
cacao and copra (dried coconut kernels).
and opportunities in establishing a regular
Currently the only way to reach export
LCL container shipping service from
PAST EXPERIENCES
markets is by ‘full container load’ as there
Honiara. One of the outcomes was to hold
My previous visit to Honiara occurred in
is no facility available to co-load and pack
a forum inviting stakeholders to investigate
the 1970s when I was a young deck officer
a container. Most agribusinesses are small
what is required to make exporting LCL
on board the Shell tanker MV Katelysia
operators and filling and funding an FCL
containers from Honiara a reality.
delivering jet fuel and petrol. My only
export container is too big a task for them.
memory is a visit to the Point Cruz Yacht
A TOUR OF THE PORT
Club (next to the port) where the expats
DIALOGUE PARTICIPANTS
After the workshop I visited Honiara
used to congregate. Forty years later the
Another topic was how improved ICT
Port and was shown around by the CEO.
expats have moved to more upmarket
connectivity could assist in efficiency and
Solomon Islands Ports Authority controls
establishments and the yacht club has seen
profitability for small businesses in the SI.
two international ports, Honiara and the
better times.
It is expected connectivity to the SI and
Port of Noro, which is on one of the 800
Pacific Connect has held a number of
other Pacific countries will be improved
outlying islands to the north-west of the
dialogues in Papua New Guinea, Fiji, Tonga,
dramatically when the Australian-funded
island of Guadalcanal where the capital
Samoa, Solomon Islands and Vanuatu. The
4000km undersea telecommunications
Honiara is situated. The total population of
primary engagement between Australia
cable between SI, PNG and the Australian
the SI is about 700,000 people.
and the Pacific is ‘first track’ diplomacy
mainland is completed in 2020. One of
The approach to Honiara is through
which is necessary and important for
the participants in the workshop was the
Iron Bottom Sound where large numbers
formal policy dialogue and relationships.
Solomon Islands Port Authority chief
of Japanese and US Navy vessels and
A less formal approach, as undertaken
by ICDP, can assist in forging genuine
long-term relationships between Pacific
and Australian current and future leaders.
executive Eranda Kotewala who has previous
port experience at Fiji Ports Corporation
and in Sri Lanka. Other participants
from Australia, SI and Fiji included those
aeroplanes were sunk or shot down
during WW2 and now provide a diving
paradise. The war is remembered by a large
US-funded memorial.
Peter van Duyn
58 August 2019
thedcn.com.au

Delegates at the Pacific Connect Dialogue
Inter-island ferry, Honiara
FROZEN FISH
The total annual volume of containers
through both ports is about 40,000 TEU,
the majority of which is through Honiara.
About 3000 TEU is shipped via the Port of
Noro, comprising mainly ‘super freezer’
FEUs full of hard frozen tuna for export
to Korea and Japan. Maersk has invested
heavily in this trade and picks up about
100 containers from Noro each vessel
visit. Container throughput in Honiara is
concentrated on imports and repositioning
of empty containers. Four from five
containers are empty, a problem also
experienced in Australia where 25% of
the total container throughput is empty
containers. Rice is one of the main imports
with large shipments arriving from China,
Indonesia and, to a lesser extent, Australia.
The port allows for 10 days free storage
on import containers, consequently the
dwell time is more than 15 days. This is
exacerbated by there being no ‘off wharf’
for empty container storage so all empty
containers are returned directly to the
wharf after being unpacked.
REGULAR CALLERS
Shipping lines which regularly call at
Honiara are Swire Shipping, Maersk, NYK,
Pacific Direct Line, Sofrana ANL and
Neptune Pacific Line. Besides container
vessels Honiara handles tankers which load
palm oil (in bulk) for export to Europe,
some bulkers and a small number of cruise
vessels. Bulk bauxite is the other main
export earner for the SI with bauxite mines
on a number of small islands. However, the
recent grounding of the bulk carrier MV
Solomon Trader, which had been loading
bauxite from Rennell Island when it ran
aground on a coral reef dented export
revenue for the government. The shipgrounding
resulted in an oil spill in a
UNESCO declared area.
Honiara has two berths: a 50-year-old
berth and a more modern berth which
can service vessels up to 260 metres in
length and a draft of 12.5 metres. The new
berth, completed in 2016, was funded by
the Japanese government, who has been
Most agribusinesses are small operators and
filling and funding an FCL export container
is too big a task for them.
a major contributor to infrastructure
projects in the SI over the years. Berth
availability has improved dramatically since
the new berth was opened and occupancy
is currently about 30 to 40%. However,
increasing container volumes and long dwell
times pose a challenge on the landside.
INTER-ISLAND FERRY AT HONIARA
The terminal operating system at the
international container terminal is still
predominately a hands-on paperwork
driven system where shipping line
representatives, custom brokers and truck
drivers gather in a central office and pay
container storage, customs duties etc.
with cash and/or cheques before being
allowed access to the import container
terminal. Once the container is cleared
the job is given to a waiting truck driver
and the container is loaded onto the truck.
Truck turnaround time is relatively short
once the container is cleared for pick-up.
Some 90% of the truck fleet is fitted with
so-called ‘sideloader equipment’, which
can independently lift containers on and
off the truck, and which are a necessity, as
most businesses in the SI do not have any
container lifting equipment.
PORT OPERATIONS
While wages in the SI are low (i.e. a
stevedore might earn A$3500 per annum)
the container tariff schedule is relatively
steep with about $200 for a TEU container
discharge/load and more than double
that for a FEU container discharge/load.
An interesting tariff item is ‘looking for a
lost container’ which is about $90 within
Honiara and $130 for a wider search. The
port authority employs about 500 people
and a ship’s gang consists of 70 people.
Gangs work 12-hour shifts (8am until 8pm
and 8pm until 8am) with two breaks in the
shift. Production is about 15 containers per
hour using ship’s gear. There are no shore
cranes in Honiara Port. Usually ships are in
port for about 36 hours with few delays in
getting onto a berth. Kalmar forklifts and
reach stackers are used to move containers
around the port and all containers for
export are cleaned and washed.
FINAL THOUGHTS
The port authority previously lost money
due to mismanagement but has turned
the corner and is hoping to use its profits
to modernise its practices and invest in
equipment and infrastructure. Hopefully
the proposed LCL project will help.
Combined with the new terminal operating
system and improved ICT connectivity once
the new undersea cable is completed, the
future is looking bright for SIPA and the
people of the SI.
thedcn.com.au August 2019 59

PORT SUSTAINABILITY
Looking beyond the port gate
Paula Wallace talks to consultant Jason Sprott about the state of sustainability at
ports in the region and the need to develop more ‘front end’ climate change policy
THE MAJORITY OF AUSTRALIANbased
firm Sprott Planning & Environment’s
work is in assisting ports develop sustainability
strategies - ensuring a balanced focus across
social, economic and environmental issues.
It has developed a simple four-stage
process - consistent with best practice
strategy development work both here and
internationally.
“Our work is largely Queensland and
Tasmanian based - with recent projects also
starting in New Zealand,” Mr Sprott tells
Daily Cargo News.
The firm has a rich international
experience upon which to draw with several
international ports driving innovation
beyond the typical sustainability approach,
namely Gothenburg, Antwerp, Amsterdam
and Vancouver.
“They are partnering with key port
stakeholders, leading research, looking
beyond the port gate and communicating
their stories very well,” Mr Sprott says.
“Strong, proactive and empowering
leadership is evident in every example.”
Mr Sprott notes Australian ports need
to focus more on “front end climate
change policy”, which involves actions
such as minimising emissions and carbon
footprints of ports and their operations.
“We have to open up conversations and
support for alternative, cleaner fuels such
as hydrogen energy which is an incredible
opportunity for Australia as a nation,” Mr
Sprott says.
“Incentive programs to reduce emissions
and drive cleaner operations such as the
great example from NSWPorts with their
‘Environmental Incentive’ for shipping are
standout examples.”
Mr Sprott believes the Port of Antwerp
is a leading proponent of “front end
climate change policy”, as are Amsterdam
and Rotterdam.
“They are focused on energy transition
to cleaner fuel types including renewable
energy projects throughout their port
regions. Addressing the cost of energy and
impact of emissions are key issues.”
There is significant action at the strategy
level, according to Mr Sprott, who has
been working with most Queensland ports,
Tasports and Napier Port in New Zealand
in strategy development work.
“I’m sure other ports around the country
are also taking action albeit at different
stages. Having an over-arching strategy
or blueprint if you like - is critical in our
view,” he says, adding it allows ports to
tackle short and longer term aspirations
- whether they be individual projects or
policy development.
Solar power at the Port of Rotterdam
“Strategy work promotes a better
understanding of ‘port sustainability’
for internal and external stakeholders
- moving beyond a one-dimensional
‘environmental’ focus - and into areas
such as people, partnerships, culture and
economic/operational efficiencies etc.”
There is a tendency to focus shortterm
actions in the sustainability space.
The problem with this approach is that
‘strategies’ end up really just being ‘shortterm
action plans’.
“We believe ports and businesses
should be stretching their commitments
and signalling to a range of stakeholders
what their plans and aspirations are over
a longer period of time - say 10-15 years,”
Mr Sprott says.
Examples of longer-term goals might
encompass areas such as energy/fuel
transition, carbon neutrality/minimisation,
emissions management, staff education
and development, community investment
and sponsorships and strategic economic
incentives.
The most pressing issues for ports in
Australia and New Zealand, according
to Mr Sprott, are energy transition and
partnerships.
“The cost of energy for industry is
incredibly high, particularly in regional
areas. There are substantial benefits in
examining therefore alternative energy
supplies/energy resilience opportunities
that reduce costs - and also lead to a
reduction in emissions,” he says.
“Partnerships is also an area where
incredible opportunities lie.”
The global World Port Sustainability
Program offers ports here the opportunity
to share and learn from leading overseas
ports across a range of topics including
partnerships.
“Finally, I think an enhanced focus on
cultural partnerships and action plans at
our ports and along their supply chains,
also offers incredible opportunities for
Australian ports,” Mr Sprott says.
“Our work in New Zealand has uncovered
some remarkable work in this space.”
Port of Rotterdam
60 August 2019
thedcn.com.au

DARWIN
CONVENTION
CENTRE
29 - 30
october
SPONSORS AND PARTNERS

OUT & ABOUT
Dylen Orloff and Lachlan Hinwood at the
MMIF Winter Warmer
Martin Gleeson, Helen Gibney and Ali Hatamidarani at MIAL
Matt Johnston and Chris Millwood at Ports Australia
Teresa Lloyd, David Parmeter and Alison Saunders at MIAL
Industry events attract
those from far and wide
FROM THE DEPTHS OF THE SOUTHERN WINTER TO THE
tropics, the maritime and logistics sector has been very active in
recent weeks.
A gathering at the Park Hyatt in Melbourne marked the 120th
anniversary of the creation of Maritime Industry Australia (or at
least its predecessor organisation), attracted a fine cross-section of
industry and government.
In another corner of the country, the tropical paradise of
Townsville was the setting for the Ports Australia Ports Business
and Operations Conference. Delegates attended from as far away
as Tasmania and Western Australia, no doubt keen for some
sunshine. As well as the formal presentations, the event was a good
opportunity to connect with those in the industry.
Back in the south, the Melbourne Marine Insurance Forum held
its annual ‘Winter Warmer’ at the Saint and Rogue Bar, a social
gathering for lawyers and insurers.
The Freight and Trade Alliance also held its Border and
Biosecurity Compliance Program at Essendon Fields, where many
interesting topics were thrashed out.
Juliette Sperber and Jeanine
Drummond at Ports Australia
David Sexton
62 August 2019
thedcn.com.au

Warwick Norman and
Nigel Porteous at MIAL
Peter Cream and Rachel Johnson at MIAL
Mark Cousins and
Andrea Bedggood at
the Winter Warmer
Peter Creeden and Nic van der Reyden at Ports Australia
Bruce Eunis and Michael Graham
at Ports Australia in Townsville
Beiyu Mao, David Stewart and Ruby Wang at FTA in Essendon
Neil Chambers, Beverley Lines
and John Lines at MIAL
Bill Wray and Paul Zalai at FTA
thedcn.com.au August 2019 63

INDUSTRY OPINION
RAN long-term staff shortage
leaves Australia vulnerable
Captain Harry Mansson makes the case for using civilian mariners
to overcome staff shortages in the Navy
THE FRIGATE HMAS PERTH
underwent a substantial and costly
capability upgrade and refurbishment in
2017, but the frigate has been in dry-dock
since then due to a lack of RAN manpower.
Current predictions are that the ship will
continue to idle until 2021, giving it a total
off-period of four years.
It raises the question of what would
happen to any chief executive of a nongovernment
listed or private company
if they allowed substantial capital
investments for upgrading any project
without ensuring the manning and logistics
would be in place for its full utilisation.
The Australian Strategy Policy Institute
said the prolonged dry-docking was a
particular current problem since it comes
at a time when the Navy is expected to
expand its regional activities in the Pacific
and Indian Oceans and in southeast
Asia. The Australian Defence Association
executive director Neil James said the
federal government dictates the manning
levels to be funded.
Additional recruitment and training
may provide long term solutions, but in
the short term the Australian Defence
Force should be considering expanding
the current practice of using Australian
merchant seafarers in a range of auxiliary
roles, including supply vessels, training
ships and tankers. I have been reliably
informed that discussions between
the RAN and the Australian seafarers
associations (seamen, officers and
engineers) have long ago settled on a
mutually acceptable protocol setting down
employment conditions and other matters.
Australian seafarers already have a
proven track record of operating support
vessels for the ADF. Australian merchant
seamen work on a range of support vessels
providing government services from AMSA
emergency response vessels and those used
for border protection. But this model has
plenty of room for substantial expansion,
allowing uniformed personnel to fill
crew shortages that are undermining the
operational capabilities of the ADF.
The ADF could then immediately free
up such Navy personnel to crew HMAS
Perth (and any others) from auxiliary and
support vessels with those roles being
filled by highly skilled and experienced
Australian seafarers. While the decline
of the Australian merchant fleet has seen
a huge loss of skills and experience from
the Australian coastline, it does provide
a unique opportunity for the RAN to put
many more of those seafarers to work.
I believe there is mutual enthusiasm
for this strategy from both the RAN and
the seafarers. It is to be hoped that there
could be a bipartisan approach to this
situation, when the concept is raised when
the Parliament resumes. The issue involves
In the short term the Australian Defence Force
should be considering expanding the current
practice of using Australian merchant seafarers
in a range of auxiliary roles.
national security, the waste of idle RAN
resources and the social and economic
benefits in using our civilian capacities.
The sequence of events could be:
• Replace as many uniformed regular
RAN staff from the type of vessels where
merchant navy personnel can do the job.
• Place the freed-up Navy staff on board
the HMAS Perth, presumably mixed up
with others from similar vessels, who
can contribute to rapid training.
Captain Harry Mansson, former shipping
executive, sea captain and sailor
• Equip the HMAS Perth for the full
range of frigate capabilities, focusing
on underwater attacks of every kind.
From my own personal military navy
experience I am aware of the practice
of deploying intense training when a
warship is in transit to its designated
area of activity.
• Despatch the HMAS Perth to assist
with the protection of Australian fuel
exports from the Gulf and other loading
areas. Add additional RAN units as
may be required to give maximum such
protection in exposed regions.
It would have the benefit for Australian
taxpayers seeing an expensively upgraded
and badly needed RAN unit being pulled out
from its expected four-year idle exhibition
and do what the RAN is supposed to do –
protect Australian interests.
Surely the recent attacks on six tankers
in the Persian Gulf should produce enough
encouragement for our government to
become active and use the military assets
to which it has been entrusted, to the
fullest possible extent in the interest of
our country.
Image supplied
64 August 2019
thedcn.com.au

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The grill
CBFCA’S Scott Carson talks about growing up in The
Shire, the role of a customs broker and the euphoria
when the Cronulla Sharks won their first premiership
Where did you grow up?
I grew up in the Sutherland Shire in Sydney
(The Shire). It was just typical suburban
Sydney upbringing. We went to the beach,
and played cricket and league out on the
streets and parks. Then holidays on the
coast. It was a good, traditional Australian
suburban upbringing and I have many
fond memories.
What did you want to be when you
were growing up?
I either wanted to be a first-grade rugby
league player or own my own business. I
was fortunate enough to do the latter, I had
my own logistics-based consulting business.
Not as fortunate with the former but
certainly played league until well into my
twenties and loved it.
How did you get into the world of
customs broking?
That goes back more than 30 years with
Owen’s Group that later morphed into
what is now known as Mainfreight
Australia. They were based in Sydney
and I was fortunate enough to start with
them in finance. I then got moved into
operations, marketing and management. I
had a really great upbringing across all the
business disciplines within a multifaceted
domestic and international freight-based
organisation.
What do you enjoy about working in
customs broking?
I think it is the pace of it and the fact
that you are helping service Australia’s
international trade. It is the fascination of
the full supply chain and the end-to-end
aspect of it.
Would you recommend customs
broking as a career?
Absolutely. The job prospects are very
strong. Particularly for someone who wants
to do a Diploma of Customs Broking, the
job prospects within this industry sector
are very strong. There’s the chance to earn
a good salary from very early on.
What do you do in your spare time?
I like to go and watch the Sharks, I
live near Shark Park. I’ve got a couple
of friends who are also mad Sharks’
supporters and we’ve got season tickets.
Also go to the movies and occasional visits
to the gym and bodysurfing. I also like
walking and just spending time with the
family and friends. My wife and I are also
working on a bucket list to check off, in
terms of travelling overseas.
Have you got a favourite rugby league
player?
Probably Steve Rogers. I’m a bit biased
because I’m a Sharks supporter but he was
the greatest player I’ve seen to date. He
was a centre and had great attacking and
defensive skills.
What did it mean to you for the Sharks
to win the 2016 premiership?
It was a load off my mind and a load
off my back, and an absolutely fantastic
experience. Having supported them
since I was young man and lived in that
part of Sydney for most of my life, it
was a great feeling and that sense of the
underdog finally getting that monkey off
our backs. We didn’t have to leave the
porch light on for Harold Holt to come
home any longer (laughs).
When you’re at home, what music do
you like?
I like my alternative rock and roll music,
going back right through to Led Zeppelin,
The Ramones, Linkin Park, Foo Fighters,
Kings of Leon, Queens of the Stone Age,
those sorts of earthy rock bands.
Can you play a musical instrument?
I keep on threatening to play the guitar.
I’ve had some lessons and I do own a guitar,
although it’s gathering dust at home.
Have you got a favourite holiday
destination?
Probably the Sunshine Coast. We’ve got
fond memories of that place because we
spent four years in Queensland when I
was state manager for Owen’s Group quite
some years ago. We used to spend every
available weekend on the Sunshine Coast.
We love it up that part of the world.
Are there any social causes you feel
strongly about?
Children’s rights and poverty, people who
can’t help themselves. I have concerns in
those areas but am also pleased that in a
number of those areas there seems to be
improvements by governments and social
systems but there are still some challenges.
Is there any Australian you find
inspiring?
The late Bob Hawke. I think he’s probably
the best Prime Minister we’ve had. He made
brave decisions with a social and economic
conscience. He could relate to Australians
of all walks of life. He was probably one of
a kind and we probably won’t see his like
again unfortunately.
CBFCA
66 August 2019
thedcn.com.au

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