DCN October Edition 2019

First published in 1891
October 2019
thedcn.com.au
The voice of Australian shipping & maritime logistics
Will the good
times last?
Liner trades from Australia to America
38 Port developments
in South Australia
46 Focus on salvage and
marine engineering
56 Liquefaction-related
shipping disasters

Keeping the ports of NSW
safe, secure and
open to the world
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Shirley Smith passes Bradleys Head lighthouse
Sydney Harbour, New South Wales

XXXXXX
Contents
32
24
FEATURES
24
32
38
46
Liner trades to the Americas
Update on liner trades: Australia/New Zealand to North America
Port design, construction & dredging
Recovery and resilience of ports coming back from natural disaster
South Australia
State of play at South Australia’s ports and developments in grain
Maritime engineering & salvage
Marine salvage case studies and the changing role of engineers
COLUMNS
38
46
8 A word from the minister
Victorian minister for ports and
freight Melissa Horne
18 Freight & Trade Alliance
Review into port access charges
19 Maritime Industry Aust
Removing impediments to
coastal shipping in Australia
20 Supply Chain & Logistics
SCLAA’s recent mission to China
21 Women in maritime
Profile: Melinda Perrottet
22 Industry opinion
New program from Australasian
Institute of Marine Surveyors
54 Trade law
An update on the Brexit situation
56 Maritime law
How to prevent liquefactionrelated
shipping disasters
58 Industry analytics
Latest ABARES figures on
Australia’s winter crop
64 Vale Captain Jack
Tribute to Captain Jack Adams
65 Industry opinion
Peter Creeden’s look at the world
of digitalised shipping
66 The grill
Profile of Dr Michael Sierp
4 October 2019
thedcn.com.au

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First published in 1891
October 2019
thedcn.com.au
EDITORIAL
ISSUE NUMBER 1251 October 2019
Paragon DCN’s award from the
Mumbrella PUBLISH Awards
From the editor
I am pleased to report that DCN recently won the award for
Relaunch of the Year at the prestigious Mumbrella PUBLISH Awards.
It has been a busy but rewarding time since we went with the
magazine relaunch in mid-2018. And this award would not have
been possible without the support of our loyal readers. From all of
us at Paragon DCN, we would like to say “thank you”.
On a more disappointing note, DCN recently reported the
expulsion of two bulkers by the Australian Maritime Safety
Authority for the underpayment of crew’s wages.
Not because of the expulsions – it’s good to know the regulator is
on the ball – but because the cases highlight that poor treatment of
crews is a genuine issue and not a fabrication of maritime unions.
To recap, the Panama-flagged Fortune Genius and the Hong Kongregistered
Xing Jing Hai were banned for 12-months and 18-months
respectively for breach of the Maritime Labour Convention.
The AMSA investigation found the crew of the Fortune Genius
had been deliberately under paid and the crew of the Xing Jing Hai
were paid late with some payments still outstanding.
This publication has some sympathy with those seeking to
deregulate cabotage laws in order to get more freight off the road
and onto ships. But this case is undermined when ship owners fail
to adhere to the letter of the law.
The maritime industry and international mariners visiting
Australian waters deserve better.
David Sexton
Editor, Daily Cargo News
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thedcn.com.au
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
Tel: 0431 956 645
Subscription Manager
James Hayman james.hayman@thedcn.com.au
Tel: 02 9126 9713
The voice of Australian shipping & maritime logistics
Will the good
times last?
Liner trades from Australia to America
38 Port developments
in South Australia
46 Focus on salvage and
marine engineering
56 Liquefaction-related
shipping disasters
DCN1019_Cover.in d 1 25-Sep-19 3:04:39 PM
COVER IMAGE
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Ian Ackerman; Lindsay Reed
6 October 2019
thedcn.com.au

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WORD FROM THE MINISTER
Victoria delivering the goods
The new ‘freight’ portfolio in Victoria brings with it a range of challenges
and exciting opportunities to bring about change
WHEN THE ANDREWS LABOR
government announced last year the new
portfolio of ‘Freight’, it was in recognition
that a thriving freight industry is vital to
growing our economy and to creating jobs
for Victorians.
Victoria is growing faster than any other
state in Australia, with the population
the size of the City of Greater Bendigo
effectively moving to Melbourne every
year. And with population growth like this,
comes the need for an unprecedented focus
on moving goods around our state and to
and from our ports.
As our first minister for freight, and
with an electorate next to our largest port,
there’s not a day where I do not directly see
the need for better freight connections to
drive the success of our businesses, primary
producers and the entire supply chain that
supports our economy.
Victoria accounts for almost a third of
Australia’s total food and fibre exports,
and our state’s reliance on both food and
fibre and manufacturing means exports
are collected from thousands of farms and
factory gates right across the state.
The key to achieving better freight
connections and sustained economic
growth, is the Labor government’s
comprehensive blueprint for freight –
Delivering the Goods, which sets out a
clear direction.
Delivering the Goods is focused on five
key areas; planning and protecting current
and future freight corridors, reducing
the impact of congestion on supply chain
costs, using our rail freight assets better,
planning for Victoria’s future port capacity
and staying ahead of the technology curve.
Our freight plan is supported by our
massive pipeline of infrastructure projects.
These projects will not only boost Victoria’s
freight industry’s efficiency but reinforce
our status as the nation’s fright and
logistics capital.
The West Gate Tunnel will deliver a
vital alternative to the West Gate Bridge
and provide direct heavy vehicle access
to the Port of Melbourne and the North
East Link will connect the southeast
of Melbourne with the city’s northern
industrial areas, the airport and the
interstate road network.
But given increasing volumes of freight,
we can’t simply rely on freight being
moved by road. Since taking on the role as
minister for freight, it has become clear
to me that we need to move more freight
by rail, and our strategy has a number of
elements in achieving this goal which will
also have the added benefit of reducing
trucks from suburban roads in and around
the Port of Melbourne.
Firstly, there is the investment in
port rail shuttles, which will establish a
metropolitan market for rail freight. It will
offer Victorian businesses that despatch
or receive international containers a
competitive and cost-efficient alternative to
road transport.
It has become clear to me that we need to move
more freight by rail, and our strategy has a number
of elements in achieving this goal
We have partnered with the operators
of intermodal terminals at Altona and
Somerton to deliver upgrades to their
infrastructure. A $16.2m investment will
connect Austrak’s facility at Somerton
and $9.5m will connect the SCT Logistics
facility at Altona to the port rail shuttle
network. This investment will see an
additional $46m in private-sector funded
upgrades, meaning that there’ll be nearly
$2 of private investment for every $1 of
public money.
Secondly, the Port of Melbourne is
Melissa Horne, Victorian minister for ports,
freight and public transport
complementing this investment through
their proposal to deliver a full on-dock
rail solution by integrating the stevedore
and rail terminals at Swanson Dock, and
Freight Victoria is currently assessing
their proposal.
In recognition that we need to change
behaviour and provide incentives to
shift more of the freight task onto rail,
the government funded the Mode Shift
Incentive Scheme for a further $4m in the
Victorian Budget 2019/20.
The MSIS is a program that for more
than a decade has made rail more attractive
than road for regional exporters to move
their produce and goods to port.
Victoria needs to move more for less.
We need to eliminate or reduce the
costs associated with delays, congestion,
excessive regulation and infrastructure that
is not fit-for-purpose.
Through the Labor government’s
freight plan and our investment in
infrastructure, we’re building better
freight connections, which are essential
to the success of Victorian businesses and
primary producers and – ultimately – to
the creation of jobs across our state – in all
parts of our economy.
Office of Melissa Horne
8 October 2019
thedcn.com.au

News in brief
Full details at thedcn.com.au
DCN wins
‘Relaunch of
the Year’ award
L-R: DCN publisher Lloyd O’Harte, sales director Lindsay Reed,
Paragon Media CEO Ian Brooks, managing director of publishing
at Channel, Chris Janz
Daily Cargo News recently took out the award for Relaunch of the
Year at the prestigious Mumbrella PUBLISH Awards.
The awards were held to a packed audience at Dalton House,
Sydney, where Australia’s finest digital and print publishers
celebrated the best in the industry.
“Making the transition from weekly paper to monthly magazine
- especially with such a trusted and established brand as the DCN -
was not something we took lightly,” said publisher Lloyd O’Harte.
“We’ve been thrilled with the positive feedback we have had
from the shipping and maritime logistics industry and to now
receive such recognition from the publishing industry is a real
honour and testimony to the hard work and expertise of the whole
team at DCN.”
AMSA boots bulkers
Two bulk ships were banned from
Australian ports after the Australian
Maritime Safety Authority found their
crews had been underpaid.
The Panama-flagged Fortune Genius
(IMO 9221877) in Gladstone and the
Hong Kong-registered Xing Jing Hai (IMO
9728344) in Brisbane have been banned
for 12 months and 18 months respectively
for what AMSA said was “a gross breach
of the Maritime Labour Convention”.
On September 5, AMSA surveyors
boarded the Fortune Genius in
Gladstone following a complaint from
the International Transport Workers’
Federation.
The AMSA investigation found the
crew had been deliberately under paid
A$100,000 by the operator, New Fortune
Genius Management, for the period
April to August.
According to AMSA,
the ship had been
operating with two sets
of wage accounts, one
showing the amount of
wages the crew should
have been paid and the
other showing what they had
actually been paid. The ship was
immediately detained.
On September 11, AMSA surveyors
boarded the Xing Jing Hai in Brisbane
following similar complaints from
the International Transport Workers’
Federation.
The complaints related to unpaid
crew wages and the operator, Dalian
Ocean Prosperity International Ship
Management, had been previously
warned over unpaid wages with sister
ship Xing Ning Hai.
AMSA’s investigation
found the crew of the
Xing Jing Hai had been
paid late for the months
of May and June, while
wages for July and August
amounting to A$140,000
were still outstanding.
AMSA general manager of
operations Allan Schwartz issued the ships
with bans, preventing them from entering
or approaching an Australian port.
“Failure to pay crew their wages in full
and on time is a reprehensible breach
of the Maritime Labour Convention and
one that AMSA will not tolerate,” he said.
“The operator of the Fortune Genius
has acted in a dishonest and predatory
fashion... while the operator of the Xing
Jing Hai has demonstrated a systemic
failure to ensure its seafarers are paid.”
Mumbrella; Pxhere
10 October 2019
thedcn.com.au

Report released into Brisbane
dedicated port rail connection
A new paper says a dedicated freight rail
connection to the Port of Brisbane could
take 2.4m truck movements a year off the
road by 2035.
The ‘game-changing’ port rail connection
project, which would separate the existing
shared passenger and freight rail networks,
would provide a dedicated link from the
Inland Rail to the Port of Brisbane.
The Deloitte Access Economics paper
said Queensland’s growing population and
the subsequent freight task, climbing from
1.35m TEU in 2018 to around five million
in 2050, necessitated an urgent shift from
the region’s reliance on road freight.
Port of Brisbane CEO Roy Cummins said
if Queenslanders wanted to protect the
liveability of their region, then the time was
right to connect the rail project to the port.
“If we don’t directly connect Inland Rail
to the Port of Brisbane, Queenslanders
won’t get the jobs, but they will get the
trucks,” Mr Cummins said.
“That’s because as Queensland’s
population grows, so too that the
freight task. The way our supply chain is
established at present, that means a truck
tsunami is heading our way.”
Currently only 2% of containerised
freight comes to the Port of Brisbane via
rail. The rest arrive on trucks.
“In 2018, that equated to 4m truck
movements. With the current rail constraints
in place that number would increase to over
13m by 2050,” Mr Cummins said.
“Deloitte’s paper shows that by building
a dedicated freight rail connection to the
Port of Brisbane... we could remove 2.4m
truck movements from the local road
network,” he said.
TOOWOOMBA
SECOND RANGE
CROSSING OPENED
The Queensland government
has officially opened the $1.6bn
Toowoomba Second Range Crossing.
It means heavy vehicles can now
travel around north of Toowoomba
rather than through it. The project
includes a 41km bypass route and an
800-metre-long viaduct.
“This is a monumental project for
the Toowoomba and Lockyer Valley
communities,” Deputy Prime Minister
Michael McCormack said.
Queensland Premier Annastacia
Palaszczuk said the crossing would
play a vital role supporting ongoing
growth of the state’s industries.
“It means our world-class exports
can get to their destination quicker,”
Ms Palaszczuk said.
The Toowoomba SRC was jointly
funded by the Australian and
Queensland governments, with the
Australian government contributing
$1.137bn and the balance by the
Queensland government.
Ambimages; LOGOS; QLD government
New logistics estate opened
in western Sydney
Minister for Western Sydney Stuart Ayres has officially opened
Stage 1 of the LOGOS $230m Marsden Park Logistics Estate. The
ceremony occurred recently with Blacktown mayor Stephen Bali.
LOGOS bought the Hollinsworth Road site in 2016 and is
developing it into a 100,000sqm “prime logistics estate”.
Mr Ayres said establishing a Logistics Estate in Marsden Park
showed vision. “It’s great to see Stage 1 completed and it will be
exciting to see the transformation here over the next 18-months as
hundreds of people take up the opportunity to work closer to where
they live in Western Sydney,” Mr Ayres said.
Mayor Bali said Western Sydney was the fastest growing region
and economy in Australia and Blacktown City was the powerhouse
at the centre of Western Sydney.
“We have a $17.1bn regional economy supporting 130,000 jobs
and the Marsden Park Logistics Estate forms a vital part in the
sustainable industrial development of the region that is driving our
strong economy,” Mr Bali said.
thedcn.com.au October 2019 11

NEWS IN BRIEF
Open trade settings should help economic revival, says Chamber
Strong international trade should help the national
economy improve despite “disappointing” growth figures
released in September, the Australian Chamber of Commerce
and Industry said.
The Australian Bureau of Statistics National Accounts data
released recently showed annualised GDP growth slowed
further to 1.4% in the year to June 2019, down from 1.8% in the
year to March 2019 and 2.3% in the year to December 2018.
ACCI chief executive James Pearson said international trade
offered cause for optimism.
“On the plus side, the importance of international trade was
apparent in the current account figures released by the ABS,”
Mr Pearson said.
“This data showed Australia achieved a current account
surplus of $5.9bn in the June quarter 2019, the first surplus
since June 1975,” he said.
“The trade in goods and services component of this
achieving a record surplus of $19.9bn. This reinforces the
importance of Australia being an open, trade economy.”
Mr Pearson said weaker growth in the June quarter was in
line with expectations given the uncertainty in the lead up to
the election in mid-May and weak housing demand.
He said businesses needed policies to lift productive
capacity through investing in skills, technology and
infrastructure, lowering energy costs, and cutting red tape,
including in workplace relations.
SENATE INQUIRY
INTO ROAD
TRANSPORT
APPROVED
Underwater eye to
seek for marine pests
An ‘early warning’ detection system has been
placed in the water at Queensland ports to
find any traces of exotic marine pests.
Biosecurity Queensland has partnered
with Queensland port authorities to deploy
specially-designed detectors in the waters
at the ports of Cairns, Townsville, Mackay,
Gladstone and Brisbane.
Based on a similar program in Western
Australia, Queensland is using technology
to test DNA from marine life growing on
structures and collected in plankton.
In a network spanning 1400km of
Queensland’s coastline, it aims to detect
molecular traces of exotic marine species
including Asian green mussel; Black striped
false mussel; Asian bag mussel; Brown
mussel; Harris mud crab; Chinese mitten
crab; and Japanese seaweed.
State agriculture minister Mark Furner
said after being submerged for two months
to provide a surface for marine organisms
to settle and grow, the detector plates were
then retrieved and tested for marine pests.
“This is a year-long surveillance trial
which will run over the winter, spring and
summer months, to allow for seasonal
changes in environmental conditions at
each of the ports,” Mr Furner said.
“If invasive marine pests become
established they could seriously impact
our marine biodiversity as well as
industries including fishing, ports,
marinas and tourism.”
Mr Furner said deploying this kind of
system was “an exciting first”.
“The first set of arrays will be taken out
of the water after eight weeks and we’ll see
what they’ve found,” he said.
“If there are any signs of marine pests,
this early warning will allow us to respond
as quickly as possible.”
A federal inquiry into the road
transport and freight sector is set to
occur, after the Senate recently voted
to conduct one.
Opposition Labor transport
spokesman Glenn Sterle said the
terms of reference were months in the
making and came from desperation
from an industry under pressure.
“We now have a unique opportunity
to... inform the government, through
the committee’s final report of what
needs to change in order to make
our industry safe and sustainable,”
Senator Sterle said.
“This inquiry will be far reaching
and all-encompassing and I
encourage anyone who is interested
in or who is affected by the transport
and freight industry to make a
submission to the committee.”
Senator Sterle criticised the federal
government for, in his words, doing
“everything it could to stop this
inquiry from getting up”.
“This raises serious concerns
about the vested interests that the
government is conniving with at the
top of the supply chain,” he said.
News of the inquiry was welcomed
by the Victorian Transport Association
chief executive Peter Anderson.
“Australian and international
supply chains experience ongoing
change which has material impacts
on freight and logistics operators, the
businesses that supply them, and of
course the transport workers they
employ,” Mr Anderson said.
Kajornyot wildlife photography
12 October 2019
thedcn.com.au

Hirohito Takada
Safety
processes
dangerous
and pointless,
lawyer warns
Lawyer and transport industry analyst Greg
Smith says safety-related administration is
often pointless and “part of the problem”.
Mr Smith, who was speaking about road
transport, addressed the Supply Chain
Safety Summit in Sydney and said many
safety processes were “pointless beyond
contemplation”.
“Our health and safety system is a
contributor to workplace stress.
“Inflexible rules, compliance with rules,
disciplinary action for breaches of rules,
all of this stuff piles on top of the boys and
girls who do our work and stresses them
out,” he said.
“We are part of the problem. Before you
create your next mental health checklist,
just stop.
“Stop and think about what you are doing.”
Mr Smith said there was a “growing body
of evidence that safety management is at
least a contributory factor and probably
causal in a lot of the harm that is actually
occurring at work”.
He noted a tragedy in Queensland where
a worker was killed by a load that fell from
a truck which led to a coronial inquest.
“As the coroner says, the evidence shows
that workers in the field find the documents
hard to comprehend and of limited
relevance in their daily lives,” he said.
Mr Smith said every single major
accident inquiry on the planet for 30
years, starting with Chernobyl in 1986,
indicated documented safety systems were
“too complex for the people who had to
implement them”.
He also noted some processes were not
only bureaucratic but created an “illusion
of safety”.
Mr Smith, who was challenged at
one point on whether he was actually a
comedian, talked of “a cottage industry,
built around the development of process
that makes no material difference
whatsoever to the way people actually
do their work or the management of the
risks involved”.
Industry bodies cry ‘foul’ over
lack of ramps
Industry bodies have banded together to demand the reinstatement of heavy
vehicle access ramps to the design of the Sydney Gateway project.
The issue has brought together the Australian Logistics Council, the Australian
Trucking Association, Container Transport Alliance Australia, Freight and Trade
Alliance, Road Freight NSW and Shipping Australia.
They say a New South Wales government decision to withdraw support for
heavy vehicle ramps at Canal Road, St Peters, poses a risk to local residents and
road users, and undermines road congestion reduction efforts.
ALC chief executive Kirk Coningham said when Gateway was proposed several
years ago, Roads and Maritime Services had designed ramps to service the Cooks
River Intermodal Terminal.
“This was a sensible approach, given that ramps at Canal Road would remove
at least 1600 truck movements a day from local roads,” Mr Coningham said.
“However, RMS subsequently decided to remove these ramps from the
Gateway design, citing cost concerns. We believe this is short-sighted and
significantly diminishes the potential freight benefits of the Gateway project.”
Mr Coningham said the lack of ramps would also isolate Australia’s largest
empty container park and would condemn Mascot residents to ongoing truck
noise, safety and emission issues.
Container Transport Alliance Australia director Neil Chambers said the Qube/
MCS Cooks River Terminal was the largest empty container depot in Australia
and an important rail intermodal terminal.
“This is not about one company only, Qube Logistics, benefiting from seamless
heavy vehicle access to/from St Peters and Port Botany. It’s about all heavy
vehicles, vital to container trade through Port Botany, having access that reduces
conflict with local residents in Mascot,” Mr Chambers said.
A spokesperson for Transport NSW said traffic modelling studies showed
future transport and general traffic benefits were low compared with the
estimated costs of building the ramps and acquiring additional land from Sydney
Airport and the Commonwealth.
“Based on these studies, a decision was made not to progress with the Canal
Road ramps and these are not part of the scope for Sydney Gateway.”
The spokesperson said Transport for NSW and Roads and Maritime had
been working with industry throughout 2019 to explore options for heavy
vehicle access at Canal Road.
“We welcome further feedback from industry and have received
submissions on this issue from the Container Transport Alliance,
Australian Logistics Council and Shipping Australia,” the
spokesperson said.
“These are being considered as part of our planning
and design process. While Canal Road ramps are not
part of the Sydney Gateway scope or funding package
approved by the NSW Government, its design will not
preclude ramps at Canal Road... at a later date.”
thedcn.com.au October 2019 13

NEWS IN BRIEF
Qld minister declares war on Asian honey bees
The Queensland government has launched a new eradication program targeting
Asian honey bees and the varroa mite.
Minister for agriculture Mark Furner said Biosecurity Queensland had eradicated
a 2016 AHB incursion in the local government area. However, another incursion
was detected at the Townsville port in May this year.
“A new $2.1m nationally cost-shared program will allow Biosecurity Queensland
staff to ramp up efforts to eradicate the pests,” Mr Furner said.
“We will fight them in the port, we will fight them in Townsville, we will defend Queensland’s
biosecurity - Asian honey bees have been beaten and they will be beaten again.”
Mr Furner said learnings from the successful 2016 program were crucial to the early
detection of the new incursion.
“Biosecurity Queensland staff discovered the new swarm as part of routine
surveillance activities,” he said.
“The nest was confirmed to be carrying the potentially devastating varroa mite,
but because staff found it early, I am happy to report there have been no further
detections of AHB or varroa mite in the port or greater local council area.
“Despite the early detection, we must still be vigilant and the National Varroa
Mite Eradication Program will ensure the fight against the varroa mite will
continue, with two key staff leading a team of 12 departmental officers until 2021.”
Singapore cargo terminal
Law firm HFW has announced the hiring
of Christopher Metcalf as a partner for its
Singapore office, part of an effort to boost
its shipping practice.
Mr Metcalf is described as an expert on
dry shipping and is ranked by The Legal
500 and Chambers as one of Singapore’s
leading maritime lawyers.
He is set to join HFW in September from
Clyde & Co, subject to regulatory approvals.
HFW recently hired former shipbroker
Chris Jones and ship finance partner
Siri Wennevik, while also relocating
admiralty and crisis management partner
Toby Stephens and ship finance partner
John Forrester from London to Singapore
in 2017.
Singapore head of shipping Toby Stephens
Shipping a focus
of HFW’s new
Singapore hire
said Mr Metcalf was “one of the top
shipping lawyers in Singapore”.
“He brings considerable dry shipping
expertise to complement our existing
strength in wet shipping and ship finance,
and further enhances our ability to offer
specialist advice to clients across the
shipping and maritime industry,” Mr
Stephens said.
The head of HFW’s Singapore office Mert
Hifzi said this hire was part of an ongoing
drive to expand and diversify in the Asia-
Pacific region.
“We’ve now added six new partners in
Singapore over the past 20 months, and
will continue to seek opportunities to
bolster our offering to clients across our
core sectors and services,” Mr Hifzi said.
SVITZER ANNOUNCES
NEW GENERAL
MANAGER FOR WA
Svitzer Australia has announced
the appointment of Jodie Ransom as
its general manager – west following
Peter Ernst’s departure to join the
Port Authority of NSW.
Ms Ransom has 30 years of
maritime experience, having worked
on both the principal and ship owner
side of the industry.
She began her career with BHP
as a cadet, serving on several BHPowned
vessels before moving into
a variety of management roles,
both operational and commercial,
including Alcoa, CBH Group and MUR
Shipping Australia.
Most recently she has been
working as Principal Logistics for
South32.
She is also on the Board of Port
Hedland Port Authority.
In a statement, Svitzer Australia
said Ms Ransom’s experience made
her ideal for the role.
“We are thrilled that she has
agreed to join us, to continue the
great work done by Peter Ernst with
our people and customers in South
Australia, Western Australia, the
Northern Territory and Papua New
Guinea,” the Svitzer statement read.
Jodie Ransom is to be based out
of the Fremantle office and is to join
Svitzer on October 14.
Igor Chus; Travelerpix
14 October 2019
thedcn.com.au

You wouldn’t accept
overbooking in a restaurant.
So why do it in shipping?
Introducing:
Maersk Spot with loading guarantee.
maersk.com/spot

NEWS IN BRIEF
Stay away from our freight,
Senator warns tech giants
VTA welcomes
passage of Owner
Drivers Act
Industry body the Victorian Transport Association
has welcomed passage of legislation in the Parliament of
Victoria to make transport work safer and fairer for owner
drivers and forestry contractors.
Changes to the Owner Drivers and Forestry Contractors
Act are expected to ensure these workers are paid
correctly, are safer and have the information to run a
successful businesses.
The changes are expected to benefit owner operators
who supply and operate one to three vehicles, including
bicycles to deliver goods, who are working as contractors,
not legal employees.
Industrial relations minister and Treasurer Tim Pallas
introduced the Bill four months ago.
VTA chief executive Peter Anderson said the association
welcomed passage of the legislation.
“We strongly supported this legislation when it was
proposed in May and are pleased with its passage through
the Parliament yesterday,” Mr Anderson said.
“We commend Minister Pallas and the Government for
working with the industry to legislate for better conditions
for transport operators and those they employ.”
Labor Senator Glenn Sterle has pledged to fight “tooth and nail”
to prevent tech giants such as Amazon and Uber dominating the
Australian freight sector.
Senator Sterle represents Western Australia in the
Commonwealth Parliament and chairs the Rural and Regional
Affairs and Transport References Committee and is deputy chair of
Rural and Regional Affairs and Transport Legislation Committee.
“There are a lot of very responsible employers, but you cannot
continue to demand lower rates for your freight movements,” the
senator told the 2019 Supply Chain Safety Summit in Sydney.
“That is before we event start on Uber Freight.
“Amazon are on the public record – they’ve just done a contract
with Heineken in Europe – where they have said proudly that they
are disruptors. They will lose money for the next 10 years just so
they can secure all these freight contracts,” he said.
“Well ladies and gentlemen, I’m not in government, but one
thing I can promise you, I will fight tooth and nail, I don’t want
Amazon in this nation in the trucking freight area. I don’t want
Uber Freight.
“Are we seriously going to get on the website because you want
a mattress delivered from Harvey Norman or you want a crate of
tomatoes delivered somewhere and go on something like AirTasker
and see just how cheap we can get the freight rates down?”
The Supply Chain and Safety Summit was organised by
the Australian Logistics Council and the Australian Trucking
Association.
INDUSTRY EVENTS
2019 EVENT
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
29-30 Oct Regional Ports, Newcastle www.informa.com.au/event/conference/regional-ports
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
2020
23-26 Mar 12th International Harbour Masters Congress, Hobart www.globalportoperations.com
To notify DCN of events please email us at editorial@paragonmedia.com.au
Nattanan726; Lawrence Glass
16 October 2019
thedcn.com.au

Helping economies grow
and customers prosper.
We enable smarter trade to
create a better future for all.

INDUSTRY OPINION
Will Victoria lead the way
on port access?
The Victorian government is leading the way for other state governments
with a formal review into port access charges, writes Andrew Crawford
IN OCTOBER 2018, IN THE LEAD UP
While the review announcement
to the Victorian state election, the ports
only occurred in August, the terms of
minister of the day, Luke Donnellan,
reference shows that a draft report is due
announced he would be bringing forward
in October 2019 with the final report with
an investigation into regulating access
recommendations due in November 2019.
prices at the Port of Melbourne. This was
For a major review of Australia’s largest
in response to increases announced by
international container terminal, it’s a very
DP World Australia, which were closely
short runway.
followed by Patrick and the Victoria
International Container Terminal.
CONCERNS RAISED
With the latest round of increases, the
One concern that has been expressed by
scourge of terminal access charges had
APSA members is that since it has taken
reached a tipping point for industry.
state governments so long to act on this
issue, the levying of infrastructure charges
THE ACCC REPORT
has become normalised, particularly
Earlier that month, the Australian
any administration and handling fees
Competition and Consumer Commission
applied by transport operators and other
also released the most detailed and
intermediaries on top of the stevedore
pointed assessment yet of the pricing
strategy. While the report didn’t outright
demand intervention, it clearly laid the
charges. In some instances, these
administration fees range from $4 to $40.
At the same time, the shipping line
Andrew Crawford, head of trade & policy,
Freight & Trade Aliance, co-secretariat, Australian
Peak Shippers Association
responsibility at the feet of the state
competition landscape has worsened,
owners, including major contestable traders
governments. It also provided state
making it harder for container terminal
in the Riverina who are shipping via the
governments with a blueprint of how
operators. Not only is there a third
Port of Melbourne. We considered the
they could regulate these charges. These
stevedore now operating in Sydney,
different regulatory options put forward by
options included increased oversight
Melbourne and Brisbane, but terminal
the ACCC and to what degree they could
of infrastructure charges by requiring
operators are now also facing a growing
help alleviate the impacts of these new fees
stevedores to seek approval from regulators
number of shipping lines coming together
on Australian importers and exporters.
before the implementation of price
in new Vessel Sharing Agreement, as
The group unanimously agreed that the
increases, setting limits on the rate at
well as the consolidation of competing
only option that would bring any relief to
which the charges could be increased, or
services. More often than not, individual
Victorian and NSW shippers using the Port
disallowing the pricing strategy altogether.
lines within these VSAs are collectively
of Melbourne is to disallow the pricing
While some states considered the ACCC
appointing stevedores.
strategy altogether. The group believed that
report behind the scenes, Victoria was the
charges should be levied on the shipping
first to announce a formal review. For that,
REVIEW OF THCS
lines, the natural commercial client of the
the state government was widely praised by
The review must also examine the
container terminal operators, and that any
industry. However, since October last year,
relationship between terminal handling
other pricing strategy would be unfair and
with a new minister and with the newly
charges and the increases we have seen in
would not encourage productivity.
formed Freight Victoria working through
landside access fees. Australian shippers
The review is potentially the biggest
a long list of priorities, the review that
continue to be hit twice. While the
opportunity for positive port reform
was ‘brought forward’ as part of a pre-
terminal access fees are increasing on the
since the introduction of the Port Botany
election campaign, was suddenly stalled.
landside, shippers are also continuing
Landside Improvement Strategy by the
Thankfully, it wasn’t parked forever.
to pay higher and higher THCs to their
NSW state government and all port users
In August, the Victorian government
announced the review had formally
commenced. It looks, however, to be a rapid
consultation process.
shipping lines.
In response to the commencement
of the review, in September 2019, APSA
facilitated a workshop of affected cargo
are hoping that it will deliver meaningful
outcomes. There is no doubt that other
state governments will be watching what
happens in Victoria with great interest.
David Sexton
18 October 2019
thedcn.com.au

INDUSTRY OPINION
Removing road blocks
from the blue highway
MIAL has lodged a submission to the federal Department of Infrastructure outlining
parts of the Coastal Trading Act it believes should be changed, writes Teresa Lloyd
MIAL
WITH THE MORRISON FEDERAL
government now approaching the sixmonth
mark, Maritime Industry Australia
is eager to ensure that the Deputy Prime
Minister has the best ideas and advice
about what would make the biggest
difference to the efficient functioning of
Australia’s coastal trade. To aid in this
process, MIAL prepared a document to
ensure impediments to the use of coastal
shipping are removed while retaining
opportunities for Australian ships.
THE MECHANICS
MIAL believes the ‘five or more’ voyage
requirement should be replaced with one
voyage. If there is no General Licence in
that sector (i.e. tankers), Temporary Licence
voyage approvals should be automatic and
instantaneous. If there is a GL in that
sector (i.e. dry bulk or containers), GL
holders can nominate which ports/trades/
cargo types they are/are not interested in.
Further to this, they can nominate whether
they exclude themselves from original
voyage applications and variations, or just
original applications.
If the GL circumstances change, they
can withdraw the exclusion from a certain
KEY POINTS
FROM THE MIAL
SUBMISSION
• The intention of these changes is to
eliminate as much ‘red tape’ within
the Coastal Trading Act as possible
without undermining the fabric of
the legislation.
• Where there are General Licence
ships, the tolerances need to be
meaningful and maintained.
• Where there are no GL ships then
the process ought to be made as
simple as possible - a simple ‘tick
and flick’.
date. If the GL holder has nominated an
exclusion (i.e. the Bass Strait operators
possibly have no interest in any container
movements between mainland ports), all
other applications for that cargo type will be
automatic/instantaneous. This eliminates
the two-day wait for Notice in Response.
GENERAL LICENCE EXCLUSION
If a GL vessel withdraws their exclusion,
this change in circumstances must be
immediately communicated (i.e. be listed
on Department website). At that time, the
‘system’ returns to the current provisions
of the Act – that being:
• GL holder cannot contest any existing,
approved TL voyages;
GL holder can contest any new applications;
• GL holder can contest any variations
to approved voyage, after two weeks
of advising the Department of the
withdrawal of their exclusion (i.e. they
have provided notice to the market that
the market has changed. In order not
to disadvantage any TL holder that was
working on the basis that the variation
would be automatically processed, a
grace period of two weeks is provided).
DIFFERENT PATHWAYS
There will have to be two completely
different pathways in the Act – one that
stays the same if a GL does not exclude
Teresa Lloyd, CEO, Maritime Industry Australia
themselves, and the other where there is no
GL or the GL has excluded themselves.
An additional requirement would be to
abolish the notification period of two days.
If needed for other reasons, notification
only should be required prior to loading.
The end result could be that applications
can be applied for, approved and notified
hours before the vessel commences loading.
MIAL looks forward to constructive
discussions to ensure the government
makes the most effective changes to the
regime as soon as possible.
IMPACT FROM MIAL’S SUGGESTED CHANGES
• TL operators would be, the vast majority of the time, much better off as
processes would be simplified and approvals instantaneous.
•
Temporary Licence operators would never be worse off than they are now.
General Licence operators might face an increased burden to exclude themselves
– however this should result in less ‘clutter’ coming through to them for
consideration – they would only receive relevant TL applications.
• Vastly reduced administration would be required by staff at the Department of
Infrastructure.
•
Information technology system upgrades no doubt would be required by the
Department of Infrastructure to automate the processing of TL applications and
link to the proposed GL exclusion database.
thedcn.com.au October 2019 19

INDUSTRY OPINION
Trade with the Celestial Empire
The Supply Chain & Logistics Association of Australia recently organised a delegation
to China, returning with many insights. By Amanda O’Brien, chair, SCLAA
THE SCLAA HAS JUST COMPLETED
a successful trade mission to China. Back
in November 2018 we were delighted to
be the first association to enter into a
significant memorandum of understanding
with The Australasian International Trade
Association with the implementation of
the Belt and Road Australia-China Supply
Chain and Logistics Alliance. Given recent
media coverage and poor assessment of
what these alliances mean to the wider
business community it has never been more
important to forge closer partnerships with
our number one trading partner China.
China is forecast to top 50% of global
GDP by 2040 and drive 40% of the world’s
consumption.
The alliance will serve its members and
facilitate Australian supply chain and
logistics development and cooperation.
This will include a wide range of services
including conferences, exhibitions, business
consultation, overseas visits, training
programs and will enhance communication
amongst alliance members.
MEETINGS AND MOUS
In China the SCLAA, with AITA, also
signed additional MoUs with peak bodies
including the Tianjin Transportation and
Logistics Association and the TCEA (Tianjin
Cross border E-commerce Association) as
well as others where an alliance of partners
will foster the development of knowledge
across borders and increase potential trade.
There were significant meetings
with the Hebei Federation of Industry
and Commerce, the Tianjin Trade
Promotion Council and a conference
at Cangzhou Municipal Government
as well as discussions with Guangzhou
Port Authorities and the Zhanjiang
Government. A comprehensive briefing
pack will be available to all SCLAA
members in coming weeks.
GRAND PERSPECTIVE
A statistic too hard to ignore is that the
Guangzhou port handles 15m TEU per year
as opposed to our biggest port, the Port of
[L-R]: Liping Zhang (Department of International Relations and Cooperation); Sue Tomic (SCLAA);
Michael Guo (AITA); Lei Biao (United Front Work Department of Guangdong Party Committee and Party
Secretary of Guangdong Federation of Industry and Commerce); Amanda O’Brien (SCLAA); Zhang Hua,
(Guangdong Federation of Industry and Commerce); and Don Nardella
Melbourne that handles 2.5m TEU and may
reach capacity in the next 20-30 years.
Significant development is continuing in
Guangzhou Port with an extended logistics
park facility covering over 340,000 square
metres that will greatly enhance the port’s
ocean-rail transportation capability. It will
have a positive impact on the port’s container
throughput and be operational by 2020.
“EURASIAN BRIDGEHEAD”
The tour and meeting with officials in
Huanghua Port will undoubtedly give
the SCLAA a solid platform to promote
collaboration with Australian industry.
The comprehensive free trade zone of
Huanghua Port is located in Cangzhou Bohai,
a new area of Hebei abutting Huanghua
Port. By means of attracting domestic and
foreign manufacturers and trade circulation,
enterprises will form a fully equipped
logistics infrastructure platform.
Huanghua Port also has plans to build
an additional 209 berths. It has built
200,000 tonnes of deep-water shipping
lanes and has the shortest Eurasia artery
between Huanghua Port and Rotterdam in
the Netherlands, earning it the name of
“new artery bridgehead of Eurasia”.
KEY MEETINGS
SCLAA also met with Bureau Heads of
Tianjin Airport Economic Area where
multiple national strategic opportunities
are available. Its committee manages the
areas that are part of the Tianjin Port Free
Trade Zone, the Tianjin Airport Economic
Area and the Harbour Economic Zone – a
total area of some 284km.
Tianjin is one of the four cities that
report directly to the Central Government
and is the centre of economic growth in
Northern China. More than 150 Fortune
500 companies invest there and over 30,000
enterprises are registered in TAEA. So far
more than 1700 enterprises are registered in
Tianjin Aviation Logistics Park alone.
MEETING WITH SENIOR OFFICIALS
A welcome banquet in honour of the
SCLAA and AITA trade delegation was
held in Beijing, with representatives of the
Chinese Central Government and several
key NGOs.
The SCLAA and delegates also met
with the Australian Trade and Investment
Commission in Guangzhou. The SCLAA
delegation and AITA wzere delighted to
meet with Paul Sanda, Chris Halford and
Geoff Matthews from the Australian
government to discuss issues concerning
the Australian business community and,
more importantly, opportunities given the
current economic climate and critically
important trade relationship between
China and Australia.
SCLAA
20 October 2019
thedcn.com.au

WOMEN IN MARITIME
Svitzer Australia
Forging a new path
This month we catch up with Melinda Perrottet, chief
engineer at Svitzer, to talk about her career and some
of the challenges facing women in maritime
MEL’S FIRST INTRODUCTION TO
maritime was a 10-day family voyage
on the Bounty (a replica of Captain
Bligh’s famous ship of the same name)
in 1988. She was just 13 but that trip
taught her that boats could be fun, with
many opportunities for adventure. When
she couldn’t secure work in her field of
study after university, she instead chased
adventure in the Kimberley Islands as a
deckhand on a pearling boat. She found she
quite liked the manual labour and team
work it required. She continued to pursue
jobs on boats and eventually gained a
cadetship with Teekay Shipping in 2003.
REWARDING ROLES
Mel found being an engineer on foreigngoing
vessels satisfying and rewarding as
it sometimes required her to engage her
analytical and problem-solving skills. She
could even get creative, constantly learning
from others, using her skills, needing to be
self-reliant yet able to work in a team. Every
day presented new and different challenges,
with an option to visit exotic countries.
Mel started as chief engineer with
Svitzer in 2015 and is responsible for the
maintenance and repair of the marine
systems and equipment on-board the
tug. She is also responsible for various
activities, including bunkering and
assisting with deck and winch operations
during towage operations.
Melinda Perrottet,
chief engineer, Svitzer
Although the work is rewarding, the long
and odd hours of work can be challenging
at times. But she has the benefit that she
can run her own game in a sense and plan
maintenance work for the week according
to her schedule.
One of the benefits is working the sunrises
on Sydney Harbour. There is the magical
scenery of the harbour and, of course, she
gets to go home at the end of each shift.
CHALLENGES FOR WOMEN
One of the main challenges is seeing a
career path that can support different
phases of life – from staring out and
seeking adventure, to having a family.
With so few women in the industry, it
is rare to come across other successful
women who have achieved this. Some
other challenges include:
• the uncertainty and lack of confidence
entering a male-dominated workforce
with few female role models;
• the difficult logistics of working away
from home, for long periods of time;
• working shifts while raising a family;
and
• not knowing the process to enter the
maritime industry.
IMPROVING DIVERSITY
Mel would like to see more willingness
among men to share the workload of
balancing family and professional life
and encourage more men to take on the
primary carer role at home. This requires
a societal change to remove any stigma
attached to those men who do choose to be
primary carer.
There also need to be more female role
models in the maritime industry, with
improved visibility. This is why Mel is
so supportive of the Nautical Institute’s
Women in Maritime initiative. Shipping
companies need to think about flexible
working conditions and the government,
she believes, should improve childcare
options to support different career paths.
PROMOTING JOBS
There also needs to be a general industrywide
promotion of maritime jobs with the
aim to make maritime jobs more visible.
This would improve diversity within the
industry and attract women directly from
school and higher education. Mel realises
it can be a real challenge to reach people in
the industry or those wishing to enter it.
On a positive note, maritime companies are
definitely starting to think outside the box.
They are aware of the benefits of having a
diverse workforce and are actively seeking a
range of candidates.
CAREER ADVICE
Mel’s final comment is to encourage young
women to get involved as much as they can
in the industry.
“Get a cadetship with a shipping
company. Get as much experience in the
meantime in the industry even if it means
working for an overseas company or with a
crew speaking a foreign language,” she says.
“Go ahead and organise your study for
your tickets even if you haven’t been picked
up for a cadetship. Get your name out
there, badger shipping companies with CVs
and requests for interviews.
“Don’t remain stagnant, do something
to advance your skills, experience and
chances for gaining work at sea. Get work
on your local boats. Work hard, listen and
learn from everyone around you as a career
at sea is extremely rewarding.”
Captain Patrick
Walsh AFNI, assistant
secretary, South East
Australia Nautical
Institute
thedcn.com.au October 2019 21

INDUSTRY OPINION
Industry creates unique marine
training program
The Australasian Institute of Marine Surveyors is seeking to bring
maritime training to Indigenous Australians
LAST YEAR THE AUSTRALASIAN
completed the courses with more than 80%
Institute of Marine Surveyorss committed
of students transitioning into maritime
to including social and community
related employment. It is highly likely that
obligations as part of its strategic operations.
a number of the above graduates candidates
The organisation has developed a
would be interested in and eligible to
training program to encourage Indigenous
enrol in AIMS marine survey training and
people to consider entering the marine
because of the success of TSMPP it makes
survey industry. It will be implemented at a
sense to introduce Indigenous Australians
national level and in the first instance will
to marine surveying and reduce the number
seek to recruit, train and provide ongoing
of overseas entrants in the industry.
employment for five Indigenous Australians
as marine surveyors from 2020-2021. The
ANCIENT SEAFARING HISTORY
AIMS intends to recruit at least one student
Not many people realise that Indigenous
in New South Wales and Queensland, the
Australians have an ancient seafaring
Northern Territory and two in Western
history and that for thousands of years
Australia however the numbers could be
they made canoes and travelled in our
expanded if the response is great enough.
waterways and our shores.
There is a piece of rock art in the
QUALIFIED SEAFARERS
Marine surveying is an industry that has
Kimberley region of Western Australia that
is 17,000 years old and you can clearly see
Susan Hull, CEO, Australasian Institute
of Marine Surveyors
traditionally relied on qualified seafarers to
the four men in the canoe with three of
take up marine surveyor roles. While some
the men holding paddles. You can also see
The program will be typically 12-18
companies still rely on recruiting seafarers
that the canoe has a high stern and prow
months duration with an employment
from overseas, they acknowledge these
so perhaps it was used further from shore
outcome on completion. Some candidates
recruits still require additional training in
than we think.
may complete the program earlier depending
order to undertake marine survey roles.
As part of a tribute to that remarkable
on previous qualifications and experience.
Another problem faced by overseas
story, in 2018 four young men travelled
recruits is the hardships they face in being
70km over three days to retrace what was
KEY COMPONENTS
so far from home and often based in
once a maritime trade route connecting
The program will involve two formal study
remote port communities such as those in
the First Peoples of the Gold Coast and
components, being an entry certificate
northern WA and many do not adapt well.
North Stradbroke Island, or Minjerribah
in marine surveying and followed up by
In 2006 a program was introduced to
as it’s known to the local Quandamooka
entry to the International Diploma. There
reduce the number of marine rescues in
people. The story has been made into a
still will be some eligibility criteria which
the Torres Strait and that program was
documentary film The Saltwater Story and
will include obviously being of Indigenous
expanded in 2014 to help equip Torres
it’s a pretty remarkable tale.
heritage, holding a maritime qualification
Strait Islanders with training and skills to
or some experience and having completed
pursue careers locally. The program was
FIRM OBJECTIVES
secondary education to at least year 11.
so successful that many have now gone on
The AIMS program has firm objectives
Graduates of the Torres Strait Marine
from those courses to get sea time up and
that include developing awareness of
Pathway Program are strongly encouraged
find work as deckhands and crew on boats,
the ‘sea country’ philosophy held by
to apply. In support of the program, AMSA
fishing boats or commercial boats.
Indigenous Australians to our members
have agreed to provide some funding and
and encouraging the consideration of
possibly a ‘work component’ for successful
SUCCESS IN THE TORRES STRAIT
recruitment and training for Indigenous
students and recruitment will begin in
To date, more than 200 Torres Strait
Islander and Aboriginal people have
undertaken Torres Strait Marine Pathway
Program and 95% of students successfully
persons across the membership as well as
maintaining membership, training and
recruitment of Indigenous marine surveyors
as a long term objective of the AIMS.
earnest in early 2020. Any person or
organisation that would like to have more
information or would like to register their
interest can do so by contacting AIMS.
Image supplied
22 October 2019
thedcn.com.au

LINER TRADES TO THE AMERICAS
The liner trades between Australia/
New Zealand and North America seem
to be in something of a purple patch.
But can it last? Dale Crisp reports.
Volumes are good, service glitches have (mostly) been ironed
out and the United States’ dreaded trade wars are having little
impact. But how good is the ANZ-North America trade?
According to Container Trade Statistics’ figures, the first
quarter of 2019 saw exports from Australasia to North America
grow a not-insubstantial 6.1%, from 113,900 TEU in the first half of
2018 to 120,800 TEU. 2017’s first half sat at 113,800 TEU.
On the other hand, imports to Australasia from North America
grew by 1.1% in the first half of calendar 2019, reaching 162,300
TEU. This compares to 160,600 TEU in first half of 2018 but still
lags well behind first-half 2017’s 164,900 TEU, CTS reported.
Notwithstanding the modest growth, the Australasian southbound
trade from North America has now slipped behind that with sub-
Saharan Africa, according to CTS.
CTS’s view of freight rates suggests southbound levels rose around
5% (from baseline) in April this year, only to fall back some 3% the
following month. Northbound, CTS reports all-in rates were around
4.5% up in April and May 2019, year-on-year, and 7.5% in June – but
while this seems like positive news, carriers are underwhelmed:
“No-one’s made their fortune on a 5% increase,” one says.
Looking back to 2018, CTS reported a 4.3% fall in the North
America-Australasia southbound trade to 336,800 TEU (2017:
352,100 TEU; 2016: 367,300 TEU) while in the opposite direction
Baronb; M. Schuppich; J. Helgason;
Valentyn Volkov; S3M Limited; Alaettin
YILDIRIM; Alex Staroseltsev; Photobeps
24 October 2019
thedcn.com.au

thedcn.com.au October 2019 25

LINER TRADES TO THE AMERICAS
Container ship Olga Maersk sailing close to Wellington, NZ
liftings rose by 4.3% - to 231,800 TEU (2017:222,300 TEU, 2016:
223,200 TEU). For the final three months of 2018 average freight
rates rose southbound, but by no more than 4%, while northbound
rates were mostly stagnant (no no-one’s surprise).
CTS figures come with the usual asterisk: “it should
be noted that CTS statistics may be substantially revised
afterwards, when new information and corrections are
processed”, and the underscore that carriers at this end of
Australasian trades often find poor correlation with the
figures compiled in the northern hemisphere.
THE TRADE IN MEAT
The stars of the northbound trade – meat and wine - are shining
brightly this year.
Meat & Livestock Australia reports that global beef demand has
been strong so far in 2019, particularly among Australia’s major
export markets. In the first half of the year, total beef exports
increased 6% and grainfed shipments reached record levels.
Shipments to the US have increased 8% amid strong demand
for lean frozen manufacturing beef to offset the swelling volume
of domestic fatty trim, MLA says, while orders for chilled grassfed
primal cuts also recorded solid growth.
A left-of-field influencer could well be the widespread outbreaks
6 %In the first half of the year, total beef
exports increased 6% and grainfed
shipments reached record levels
26 October 2019
of African swine flu amongst Chinese pig herds. More than a
third of the country’s pig population has now been wiped out –
some 100m animals – and the disease is present in all mainland
provinces and reportedly spreading to neighbouring countries,
including Mongolia, Russia, Vietnam and Cambodia.
Pork import replacements are simply not capable of meeting
demand and so China has looked to source replacement meats,
especially beef, from Australia. One shipping line reports an 82%
increase year-on-year in beef shipments from Brisbane to China,
alone, while MLA says China-led growth across both high and
lower value product, expanding 59% year-on-year in the first six
months of 2019. Will this demand divert beef from North America?
“The US will always want what they want [of Australian beef]
The stars of the northbound trade –
meat and wine - are shining brightly
this year.
and pay the price,” an executive confidently predicts. “They’re still
taking the cheaper cuts [ground beef for burgers] and we’re quite
happy to sell them … it’s a marriage of convenience.”
As for sheepmeats, MLA reports that drought-constrained supply
combined with strong demand – again from China and the USA –
has kept domestic farmgate prices high, while a declining Australia
dollar and limited competition has underpinned export growth.
“After years of contraction, per capita US sheepmeat
consumption has been edging higher since 2013, underpinned
by growing familiarity and willingness to try lamb amongst
millennials, increased incidence on US menus and a post-GFC
economic recovery,” MLA says.
Australian lamb exports during the first four months of 2019
jumped 27% year-on-year, to 23,000 tonnes shipped weight,
spurred on by limited supply coming off Colorado feedlots. New
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LINER TRADES TO THE AMERICAS
27 %
Australian lamb exports during the first four months of 2019
jumped 27% year-on-year, to 23,000 tonnes shipped weight
Zealand also recorded strong growth, with lamb shipments up 46%
year-on-year during the first quarter, at almost 8,000 tonnes swt.
“Encouragingly, the increased sheepmeat trade appears to
be flowing through to consumers, with US sheepmeat in cold
storage declining in February and March after opening the year at
burdensome levels,” MLA says.
“While the US lamb market has been a strong performer in
2019, if the unresolved trade-war eventually impacts the economy,
lamb demand could suffer due to it being a relatively high-priced
niche product and geared towards foodservice.”
Things look rosy now but observers are rather more pessimistic
about the future.
“The impact of drought is inescapable and seemingly ongoing,” a
carrier representative says. “We’re in a kind of twilight zone at the
moment: there’s strong supply of animals for sale, processing and
export because farmers are still de-stocking. But at some point, and it’s
probably soon, that supply will dry up just as some rivers have done.
“Growers will want to retain core breeding stock but that
just may not be possible, if all the seasonal forecasts from the
Bureau of Meteorology prove accurate – and I fear they will.” MLA
concurs that exporters will face supply constraints as the second
half of 2019 progresses and expects beef exports to finish the year
steady while sheepmeat shipments are forecast to end 2019 6%
below 2018 levels.
INCREASING VALUE OF WINE
Meanwhile, the 7% growth in the value of wine shipped to China
in FY 2019 headlined an overall export boost of 4% to $2.86bn, but
the USA market made what Wine Australia describes as “a welcome
return to growth” amid a continuing transition in product profile.
Wine Australia CEO Andreas Clark says the growth in value
and the declines in volume at that lower end of the price spectrum
would be welcome news to the sector that has been focusing
strongly on growing value rather than volume.
“The strong growth in average value is positive for the wine
sector and the broader economy as it lifts returns for wine
businesses and flows through to regional economies through higher
The strong growth in average value
is positive for the wine sector and
the broader economy.
grape prices. Our National Vintage Report 2019 shows that the
average grape price has lifted for the fifth year in a row, reaching
$664 per tonne, the highest level since 2008,” Mr Clark says.
The turnaround in exports to the USA, which grew by 2% in
value to $432m, is pleasing. Average value increasing 6% to $2.83
per litre, the first growth in two years, rewards the efforts of the
many exporters who are working actively in that market to change
perceptions about Australian wines and communicate about the
diversity and excellence of Australia’s offering.
There were increases across most major price segments in the
USA with the stand-out segment for growth being $7.50 to $9.99
per litre FOB.
Mr Clark says Australian wine supplies would remain tight in
the medium term with the NVR revealing that the 2019 vintage
was 1.73m tonnes, just 1% below the 10-year average. This means
that supplies, particularly of reds that dominate Australian exports,
will continue to remain stable.
Latest results from Wine Australia’s five-year Wine Opinions
market research program in the USA indicate the turnaround may
be gathering strength. Trade and consumer quantitative surveys
show increased support for higher quality/higher priced Australian
wines (as per WA’s strategy) and significant interest in learning
about new and different wines from the region.
“For the coming five years, 68% of respondents are predicting
growth of Australian wine share of the US market, with only 3%
predicting some decline in share. Among those selling Australian
wines, projections of net positive growth were greater in 2019 than
in the 2015 trade survey,” the mid-July 2019 update reports.
TRADE WAR NEGLIGIBLE
Meat and wine are not the only commodities doing well, with
carriers lauding a strong northbound citrus season early this year
and very good southbound volumes of grapes currently, along with
the usual goods and products moving between the continents.
Perhaps surprisingly they also report no impact of the US-China
trade war, either northbound or southbound, despite expecting to
take some kind of a hit.
“Maybe the transhipment services have suffered some collateral
damage – I haven’t really checked – but I can honestly say we’ve
seen no effect at all,” a senior representative asserted.
As for freight rates – and more specific than the CTS trends
noted above - on 12 August carriers announced a GRI of US$100/
TEU and $175/FEU on all shipments from West Coast North
America to Australia/New Zealand, which was effective from 15
September. Given the robust liftings reported at the time of writing
carriers were confident the increase would gain traction.
A southbound GRI for the East Coast was announced on
5 September, amounting to US$200/TEU and $400/FEU and
applicable from 15 October to all cargo from United States East
Coast, Gulf Coast, and Canada via United States East Coast to
Australia/New Zealand.
Northbound, carriers are looking at least one GRI next year to
build on “pretty solid” liftings from ANZ throughout 2019 (to
date). Currently “they’re not going down so in some books that’s
the same as a rise …”
But as the CTS stats make clear, southbound is the headhaul
leg from both coasts and the money-spinner: “If I didn’t have
to service the northbound trade I’d be making a hell of a lot of
money,” the executive avowed.
28 October 2019
thedcn.com.au

Bay of Vancouver, Canada
Ssguy
This rather puts Australian
exporters’ position behind that
of kiwifruit shippers.
SERVICE OFFERINGS
Looking at the direct services offered, the structure of the East
Coast trade remains the same, with the Maersk Line/Hamburg
Süd OC1/Trident service operating weekly between ANZ and
ECNA while CMA CGM/Marfret’s PAD/NASP service calls ECNA
en route to/from Europe, offering weekly frequency February to
September and reverting to fortnightly during the (NZ) export low
season. Both services offer Latin/South American connections over
Central America hubs.
It’s been reasonably steady-as-she-goes for OC1/Trident,
although a fire took Olga Maersk out of the service for over a month
early this year and Maersk Innoshima suffered technical difficulties
in late March; there have also been some temporary substitutions
to cover drydocking requirements (in China) disturbing the flow.
The eleven-ship fleet – six from MSK, five from HSD, albeit
there’s now common ownership – comprises 1 x 4253 TEU, 4 x 3752
TEU, 3 x 3460 TEU and 3 x 3028 TEU. During Peruvian mango
export season OC1/Trident also calls Paita north/eastbound and
during this time Timaru calls are fortnightly.
When operating weekly, PAD/NASP uses 13 ships ranging
from 2259 TEU to 2824 TEU, contracting to seven ships when
fortnightly. Some of the challenges faced by a service covering up
to 18 ports across 10 countries, with a 98-day round voyage and
using (comparatively) uneconomic, small ships were canvassed
in DCN’s recent review of Liner Trades with Europe (September
2019, pp24-30).
Suffice to say that many watchers consider some kind of
accommodation between the providers of the two ECNA services is
inevitable – but PAD/NASP’s current format seems assured at least
until CMA CGM’s key baseload contract with NZ kiwifruit exporter
Zespri expires (after the 2020 season). Meanwhile, as of 1 October,
as part of the CMA CGM Group’s ongoing brand re-alignments ANL
will no longer participate in the ANZ-ECNA trade.
Unfortunately, Zespri’s export deadlines out of Tauranga are
crucial and so often determine that any PAD/NASP delays incurred
southbound are made up by the omission of Brisbane, Sydney or
Melbourne calls.
“This rather puts Australian exporters’ position behind that
of kiwifruit shippers, which is not ideal,” one source notes.
Nevertheless, it recognises the reality of the importance of the
Zespri business to the survival of the service.
CGM sources suggest that Australian port omissions are,
$
at least, more easily managed thanks to the group’s spread of
664
per tonne
The average grape price has lifted for the fifth year in a row,
reaching $664 per tonne, the highest level since 2008
thedcn.com.au October 2019 29

LINER TRADES TO THE AMERICAS
6.1 %
The first quarter of 2019 saw exports from Australasia to North
America grow a not-insubstantial 6.1%, from 113,900 TEU in the
first half of 2018 to 120,800 TEU
intersecting services in the region: “It’s never our intention to drop
calls and no-one wants to tell customers they’ll have to wait a week
[or fortnight] but we can usually cover in a matter of days using
our network.”
WEST COAST RE-WORK
On the west coast, 2019 has been all about bedding down and then
fine-tuning the ‘new’ format introduced by what was previously
known as the OVSA (Oceania Vessel Sharing Agreement) at the end
of 2018.
Group membership remains the same – ANL, Hapag-Lloyd and
Maersk (in Hamburg Süd guise) and despite much palaver at the
time, the combined service structure of one weekly loop and one
fortnightly loop, each largely mimicking the old PSW and PNW,
was little changed (although each member’s participation is now
standardised across each loop).
The revitalisation was underpinned by a shift to fewer but larger
ships – from 4 x 2500-2700 TEU on PNW and 7 x 3500-5000 TEU
on PSW – to a reasonably uniform fleet of 8 x 3800-4500 TEU, with
four allocated to each string. MSK/HSD has just replaced one of
the two remaining 3800s with a 4250 and will likely replace the
other soon.
Alas, the four plus four didn’t quite work out operationally,
with the old bugbear of delays on the fortnightly service causing
Adelaide calls to be dropped too many times and schedule integrity
to blow out.
As one insider says, “there just weren’t enough buffers in the
schedule, especially on the northwest run. If we were just a day late
maybe we could catch up by speeding up – and burning expensive
fuel – but if it was any more than that we were at the mercy of
missed windows compounding, and that meant we were faced with
port omissions, transhipment costs, unhappy customers and so
on. [The new format] worked on paper but there were just so many
knock-on issues.”
Vancouver – where one ship waited six days – Long Beach,
Auckland and Sydney were regular problem ports.
In August the carriers took the decision to bite the bullet and add
a ninth ship, the ANL-operated 4253 TEU Debussy, which enables
all ships to alternate between the loops and brings the service
levels up to those promised, albeit some northbound transits have
elongated to certain customers’ dissatisfaction.
“We’re looking at that at the moment and we think we’ll have a
solution soon,” a representative says.
“We just couldn’t continue the way we were,” he says. “Adelaide
was missing out too often as dropping it was the only real way of
We’ve got to be mindful that we can’t
be running ships at full speed, especially
with IMO 2020 looming.
getting ships back on time at this end, and that’s no good for a
fortnightly service, it means a month between calls. We could cover
that via Melbourne but that’s not really a solution and just adds
costs and inconvenience. We’ve also dropped the Sydney double
calls, which were also suffering.
“We’ve got to be mindful that we can’t be running ships at full
speed, especially with IMO 2020 looming on 1 January and whoknows-what
fuel costs, and we have to be able to offer shippers the
certainty they require.
“The ships are the right size: they’re allocated out at about 3100
TEU and I think we’re averaging about 2900 TEU – southbound
we’ve been running at close to 95% utilisation for most of the year.
A couple of recent sailings have even had to roll 300-400 containers.
Replacing those last two MSK/HSD 3800s will work well.
“The ninth ship has solved the schedule problems and overall I
think the service is working pretty well.
“I certainly count the west coast re-work as a success.”
Long Beach, California, USA
HAPPY CAMPERS
As regular readers will know, it can be hard to find happy campers
in liner trades.
With the ANZ-North America routes ticking most boxes this
year, executives are preferring to ignore any possible snags in the
meat trades and enjoy the (wine) glass half full.
As a trade manager told DCN: “I’m certainly not presenting losses
to my bosses every week, so one really can’t ask for more … other
than a pay rise!”
Ungureanu Catalina Oana
30 October 2019
thedcn.com.au

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PORT DESIGN, CONSTRUCTION & DREDGING
Aerial view of the breakwater at the Port of Mackay
32 October 2019
thedcn.com.au

NQBP
A recent conference in Hobart
shone light on how ports have
recovered from natural disasters
and how others are preparing to
handle them in the future.
By David Sexton
Just before 1pm on February 22, 2011, as many kiwis
were enjoying their lunchbreak, the great Christchurch
Earthquake struck.
Some 185 people were killed and the beautiful old city
devastated. Nearby Port of Lyttelton, the major port for
the South Island and New Zealand’s third largest port overall,
was not spared.
DCN reported at the time that the port had been
“severely damaged” with a witness at the port describing
some of the chaos.
“I was there on wharf when the asphalt started flying
around,” the witness told former DCN reporter Rhiannon
Zanetic. “I saw a building fall down. It was pretty terrifying
– it was almost unreal.”
The quake, a magnitude of 6.3, had been preceded by a larger
quake in September 2010 that apparently weakened some of
the city’s infrastructure.
In terms of port infrastructure, the quake caused massive
damage to wharves, tunnels and administration buildings.
thedcn.com.au October 2019 33

PORT DESIGN, CONSTRUCTION & DREDGING
FACT BOX
LYTTELTON PORT RECOVERY PLAN
•
Recovery Plan was developed.
•
Between June 2014 and November 2015 the Lyttelton Port
In June 2014, the Minister for Canterbury Earthquake
Recovery directed Environment Canterbury and (ECan)
and Lyttelton Port Company to prepare Lyttelton Port
Recovery Plan.
• The plan had to ensure safe, efficient and effective
operations, while taking account of the impact on the
coastal marine area and the community.
• LPC produced the Port Lyttelton Plan, a 30-year vision
for the recovery and enhancement of the port, a starting
point for extensive community communication and
engagement.
• ECan released its preliminary draft Port Lyttelton
Recovery Plan and invited submissions, with more than
270 submissions received.
• In August 2015 ECan presented the draft Lyttelton Port
Recovery Plan to the Minister for Canterbury Earthquake
Recovery.
• On 19 November 2015 the Minister for Canterbury
Earthquake Recovery, Gerry Brownlee, announced the
Lyttelton Port Recovery Plan.
Source: Lyttelton Port Corporation
Christchurch is low-lying and with a relatively high water
table leading to cases of liquefaction. Moreover the epicentre of
the quake was just four kilometres from the port, increasing the
damage sustained.
But as Jared Pettersson, director of Enviser Ltd explains to DCN
during a seminar in Hobart, some good came from the disaster by
way of new infrastructure and allowing for a rebuild for the future.
At a recent International Association for Waterborne Transport
Infrastructure (PIANC) conference in Hobart, Jared Pettersson told
DCN the recovery contributed to new infrastructure and a rebuild
for the future.
The director of Enviser Ltd describes how the city CBD had to
Containers at Lyttelton Port
be cordoned off for 59 days, with homes damaged and demolished.
Providing some context, pre-quake there was much growth in dairy
and farming, with volumes putting pressure on the port.
In the immediate aftermath it was vital to keep the port at least
partially operational in order to facilitate recovery.
“A lot of resources and materials and machinery that were
needed for the recovery had to come through the port. Also the
Navy was based there, which was important for the response
effort,” Mr Pettersson says.
WHAT DOES RECOVERY LOOK LIKE?
Mr Pettersson describes recovery efforts as “a long and winding
road” and the need to answer the question “what does recovery
look like?”
He says the choice was between rebuilding the facilities “as
they were” prior to the earthquake “or should it deliver an
enhanced port”.
“The big question there was, if this is not going to be just a
rebuild, would the community see it as recovery or would they see
it as something else?” he says.
“And what about getting approval?”
Ultimately Port of Lyttelton decided “recovery should be more
than a rebuild” and to use insurance money to set the port up for
the future via the NZ$900m Port to the East project.
This decision was made easier because the port was already
over-capacity and if a decade was spent rebuilding what was already
there, then in a decade they could be well behind in terms of
capacity growth.
Mr Pettersson describes the thinking behind Port to the East.
“Port to the East was basically shifting port operations
eastwards, further away from town and relied on creation of a new
container terminal,” he says.
“What the port decided to do was: the recovery should be more
than a rebuild. We should take the insurance money and look
towards developing a port for the future.”
Lyttleton Port
34 October 2019
thedcn.com.au

The idea was to shift port operations eastwards, further
away from the city while creating a new container terminal on
reclaimed land.
“So there would be less effects on the town and more
recreational space,” he says.
Mr Pettersson says the container terminal was the most
significant aspect of the project.
However there was a challenge with legislation, as the existing
regulations “did not in any way legislate a total rebuild of the port”,
with the relevant minister ultimately having to deem it necessary
in order to expedite port recovery.
Mr Pettersson says getting the community behind the project
had its challenges but ultimately worked out for the best.
“As the community had to be involved in the recovery, which
was challenging but ultimately was really important,” he says.
The port is reported to have developed a much stronger
relationship with its community, a key stakeholder.
“After an earthquake is a good time to work with your
stakeholders,” Mr Pettersson says.
There was another challenge also.
“Going from a port operator that didn’t do a whole lot of
infrastructure development to a port developer with the biggest
infrastructure project in the South Island for a private company is
really challenging,” he says.
FINAL GOOD NEWS
Lyttelton Port Company strategic engagement manager Phil
de Joux tells DCN the rebuild of Lyttelton Port (post 2011
earthquake) is ongoing.
“This is because post-earthquake the decision was made to
not only repair, but reconfigure the port, resulting in a modern,
efficient port designed for future freight growth and shipping
trends,” he says.
“The rebuild and strengthening of Cashin Quay (our container
terminal and wharf) is complete. The benefit of our postearthquake
facilities is that they have been built with seismic
resilience and are consistent with modern environmental
standards.
“We have also undertaken a major dredging and channel
deepening project, meaning Lyttelton Port can now cater for larger
container vessels.”
Mr de Joux says work was ongoing to reclaim land at Te
Awaparahi Bay.
“Ten hectares of land has been reclaimed and we are currently
in the process of reclaiming a further six hectares, with plans to
extend our existing container terminal,” he says.
“We are also building New Zealand’s first purpose-built cruise
ship facility, set to be complete by November 2020, in time for the
2020/2021 cruise ship season.”
Mr de Joux says the port is also undertaking strengthening and
repair work on LPC’s oil berth, which was badly damaged during
the earthquakes.
“This work will extend the longevity of this vital resource for
Canterbury. Contractors have worked hard to ensure the berth
remains operational while the project is underway,” he says.
“The project is expected to be complete mid-2020.”
It is interesting to note that there has been more than a 50%
increase in TEU volume moving through Lyttelton Port since 2010.
TEU volume in 2010 was 273,789, compared with 437,413 this year,
according to LPC.
FROM EARTHQUAKES TO CYCLONES
Leaving New Zealand and heading to the tropics of Queensland,
port operators are faced with a different set of challenges. North
Queensland Bulk Ports manages the ports of Mackay, Hay Point,
Abbot Point (near Bowen) and Weipa. Being in Australia’s tropics,
it manages some of the most cyclone-prone waterfront in the
country.
The famous cyclone of 1918 destroyed much of Mackay
either through strong winds or storm surge. The category-4
Tropical Cyclone Debbie in March 2017 didn’t cause that level of
destruction but it did force the closure of the ports of Mackay,
Abbot Point and Hay Point.
NQBP principal asset manager John Hinschen told the PIANC
conference about the impact of cyclones upon breakwaters, which
extend about a kilometre into the ocean. He says there are typically
four to five cyclones a year that cross the Queensland coast, with
climate change predictions suggested they will become less frequent
but more severe.
“Less than two weeks after (my) starting at with the Mackay
Port Authority, Cyclone Dylan hit (January 2014) just to the north.
“There is a strong relationship with the east coast cyclones and
the El Nino and the Southern Oscillation phenomenon.
“Tropical cyclones are predicted to become less frequent but
more intense and cyclones are expected to track further south,
resulting in more damage,” he says.
Mr Hinschen also notes predictions of rising sea levels, with
forecasts of about half a metre by 2100.
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thedcn.com.au October 2019 35

PORT DESIGN, CONSTRUCTION & DREDGING
“Three cyclones in recent years, crossing north of the Port of
Mackay, have been a significant issue,” Mr Hinschen says.
“Cyclone Dylan category-2 and Cyclone Debbie category-4… they
both crossed the coast pretty much at the same place about 200km
north of Mackay, the impact was [especially] severe in Dylan due to
the duration of the storm surge.”
Following Tropical Cyclone Debbie, NQBP general manager
engineering and development Rochelle Macdonald said
investigations, including 3D laser scanning, showed damage that
was worse than first thought.
“The southern breakwater in particular has suffered damage to
the slope facing the sea,” Dr Macdonald said at the time.
We estimated that we needed
about 80,000 to 90,000 tonnes of rock.
We ended up replacing about
140,000 tonnes
John Hinschen, NQBP
“Like so many others in the region, TC Cyclone Debbie delivered
a powerful blow to our east coast operations.”
Mr Hinschen says TC Debbie wrought about $18m worth of
damage and TC Dylan in 2014 caused about $23m. He notes the
various impacts, including the costs of repairs, the impact of
shipping movements and the potential loss of revenue to the port
and customers and disruption of fuel supply to industry.
Mackay is a key port for the Bowen Basin coal-mining sector,
bringing in fuel and machinery, keeping the minerals sector
operating, as well as supporting the sugar and cane-growing sector.
“So fuel not being able to come through the port pretty much
stops Queensland’s economy very quickly,” Mr Hinschen says.
The southern breakwater at Mackay helps protect the port from
waves and oceans swells, however, Mr Hinschen says it was not
intended to be “a cyclone-safe haven”.
He notes significant damage to the southern breakwater during
TC Dylan, with the damage exacerbated due to it occurring over a
six-day period with many tide changes.
“We had damage from well down the wall to well over the top of
the wall,” he says.
“The biggest problem when fixing breakwaters is getting enough
rock in the timeframe. We’ve had rocks supplied from many
quarries. But duration of your repair is driven by how fast you can
get your rock, no matter how you call it,” he says.
“It is a very slow process in getting the right size and quantity
of rock.”
THE NORTH-WEST
Heading to the western side of the country, the North-West Shelf
is similarly affected by raging tropical storms. Director of Baird
Australia, David Taylor, spoke about the impacts of cyclones on
ports in that part of the world and some important adaptations.
Mr Taylor notes the North-West was the most active cyclonic
region in the Southern Hemisphere, with the highest frequency of
category-4 and category-5 storms. Some destructive cyclones had
included TC George in 2007 and TC Orson in the late 1980s and
TC Veronica earlier this year, which flooded mines and swamped
infrastructure.
“Having been involved in developing design criteria in this part
of the world for the last 15 years, it is definitely something that
warrants further consideration,” Mr Taylor says.
He notes work at Port Hedland regarding reducing the likelihood
of a channel blockage, given the tremendous costs involved should
a capesize vessel run ground on the channel margin. Various
factors would determine the impact but “the potential impact is a
long and very complex salvage operation to clear the channel and
clear the ship”.
“So the channel blockage risk has existed ever since these
ports were developed. But the value of that risk has exponentially
increased in the last 15 years,” he says.
“We have seen a rapid increase in port capacity. The number of
ships going through these channels has increased and there has
been a major increase in the value of the commodity – iron ore.”
A ROCKY RECOVERY
Following Cyclone Dylan, NQBP began emergency work on the
southern breakwater, including proceeding with work on the
1.8km-long (90metres had been completed prior to the cyclone).
“So we continued with that upgrade during the repair. We
estimated that we needed about 80,000 to 90,000 tonnes of rock. We
ended up replacing nearly 145,000 tonnes for the southern breakwater
and that was completed by August 2015,” Mr Hinschen says.
“So eighteen months after the storm, we just finished fixing the
southern breakwater.”
Repairs started on the northern and middle breakwaters in
November 2015, with about 23,000 tonnes of rock placed on the
northern breakwater and 21,000 tonnes on the middle breakwater.
Mr Hinschen says they were fortunate at Mackay to have their
own quarry within about one kilometre of their breakwaters.
PORT-RELATED DAMAGE FROM THE
CHRISTCHURCH 2011 EARTHQUAKE
All four Cashin Quay wharves were written off at a cost of
NZ$300m to replace.
Most of the Inner Harbour wharves were also damaged
and were either written off or had a significant reduction in
their levels of service.
The port head office had to be demolished, most of
the breakwaters had damage and the fuel wharf was also
written off.
One of the coal loaders was severely damaged and the
west coast coal mines had five days of storage and they had
to shut down as well, with big delays to coal shipping.
Container cranes were damaged when they jumped off
their rails.
LPG
36 October 2019
thedcn.com.au

SOUTH AUSTRALIA
MSC Melissa at the Flinders Adelaide Container Terminal
Image Flinders supplied Port Holdings
38 October 2019
thedcn.com.au

Weathering
seasons
Major ports in South
Australia are holding
firm despite the fall
in grain exports this
year and looming
competition from
developments on the
Eyre Peninsula, writes
Janine Hill
Ports continue to play an integral role in the success of key
industries in South Australia and the state’s overall economy.
The fishing, grain, fertiliser, and petroleum trades, not to
mention the state’s burgeoning cruise industry, rely heavily
on the ports of Adelaide, Port Lincoln, Port Pirie, Thevenard,
Port Giles, Wallaroo and Klein Point, all managed by Flinders Port
Holdings Group.
Flinders Ports chief executive Stewart Lammin says continued
investment in the South Australian ports is vital for the state to
continue doing business.
“In 2019 our operations will facilitate $25bn dollars in trade
for the state and are a prime example of the pivotal role core
infrastructure plays in South Australia’s economy,” Mr Lammin
tells Daily Cargo News.
While conditions have not been ideal, there is strength in the
diversity of freight moved by Flinders Ports and the company has
produced positive results overall.
Despite a downturn in grain exports, Flinders Ports has
recorded a slight increase in ship numbers, picking up at Port Pirie
and Thevenard.
Like the farmers, the ports and their communities are hoping
for more rain and better growing conditions.
“With low rainfall levels, farmers and exporters have really felt
the pinch of the drought in South Australia. Grain levels are quite
low which has impacted our exports,” Mr Lammin says.
“Further to this, the drought in the eastern states has taken a
great deal of grain and hay over land to areas that need it, rather
than by sea.
“This is quite clearly reflected in comparison to the statistics
from last year. Along with the farmers, we are all very much
hoping to see more rain to bolster next year’s grain season.”
Although there has been a fall in production, grain continues
to be one of the major cargoes handled by Flinders Ports.
thedcn.com.au October 2019 39

SOUTH AUSTRALIA
Mr Lammin says the de-bulking of grain has
been beneficial overall and containerisation is
allowing the transport of amounts that might not
have otherwise been viable for shipment.
“While we still support the bulk handling
and shipments of grain across the state, the
containerisation of grain has been a positive change
for the ports,” he says.
“Since deregulation approximately 10 years ago,
we have seen grain being transported in containers as well as
in bulk.
“These containers are exported through the Flinders Adelaide
Container Terminal, and grain is now one of our major
container export commodities.
“This means that exporters can send smaller amounts, and a
variety of pulses and cereal grain.”
Mr Lammin sees mining as providing future growth
opportunities for the Flinders Ports.
“As the market is improving in the mining sector, we are
seeing some great potential bulk and containerised project
opportunities coming up for the state and border districts.
Flinders Port Holdings are certainly looking into how we can be
involved,” he says.
SA’S CONTAINER TERMINAL
Flinders Adelaide Container Terminal general manager David
Sleath points out that the group handles much more than grain.
“We are very lucky in South Australia to have a vast array of
produce that forms a vital part of the South Australian economy,”
he says.
“Some of our key commodities are our exports through our ports
include wine, citrus fruits, table grapes, hay and containerised
grain, malt, wool, frozen and chilled meat.
“Scrap metal exports, lead product, and copper cathode are also
some of our top bulk exports for South Australia.”
FACT, the state’s only container terminal, is one of Flinders Ports
busiest facilities.
FACT processed more than 420,000 TEU in 442 container vessel
calls during the 2019 financial year, compared with 413,000 tonnes
as a result of 430 ships the previous year.
Mr Sleath says that although grain is down, renewable energy
Kieran Carvill, CEO, T-Ports
Left: Mark Rodda, CEO, FREE Eyre
Right: Stewart Lammin, CEO, Flinders
Port Holdings
projects in the state are still pushing up freight, despite many
having reached maturity.
FACT is investing for future growth and efficiencies. Two new
weigh-in-motion weighbridges were successfully installed in 2018,
and an intermodal facility upgrade has recently been completed,
which involved the installation of a new rail spur and the laying of
additional hardstand.
“The intermodal facility operational footprint has effectively
doubled resulting in increased storage capacity and operational
efficiencies,” Mr Sleath says.
“Another great initiative that is happening at present at FACT is
a new project to increase the servicing efficiency of non-reversible
high productivity vehicles which visit the terminal.”
EYRE PENINSULA DEVELOPMENTS
Flinders Ports is still waiting to see what impact the
development of grain shipping facilities on the Eyre Peninsula
will have on its operations.
Construction of the Lucky Bay port is due
for completion in December and shipments are
expected to begin in January or February.
T-Ports contacted growers in 2017 to secure
expressions of interest for grain to be exported
through the new port facility at Lucky Bay. In this
process, there were 120 growers who supported
the project by expressing an interest to deliver
more than 377,000 tonnes of annual grain
throughput.
T-Ports has built storage facilities of 360,000-
500,00 tonnes in 10 bunkers at Lucky Bay and
another 140,000 tonnes in six bunkers at Lock.
“T-Ports will be open for grower receivals
for the 2019 harvest,” CEO of T-Ports Kieran
Carvill says.
“The bunker sites are now ready for harvest
deliveries. All infrastructure is built and
FREE Eyre; Image supplied; Barb Woolford
40 October 2019
thedcn.com.au

BRINGING THE PORT
TO THE PRODUCT
T-Ports uses state-of-the-art technology, an innovative business
model and integration in the supply chain to create low-cost,
highly efficient port infrastructure.
The first of its SA developments is at
Lucky Bay, near Cowell on Eyre Peninsula,
with planning underway for a second port
at Wallaroo on the Yorke Peninsula.
The first bespoke transhipment
vessel, currently nearing completion
in China, has capacity for transport of
commodities from SA to other states
- in bulk and by container.
1800 87 67 87 + www.tports.com

SOUTH AUSTRALIA
FREIGHT BLUEPRINT FOR SOUTH AUSTRALIA RELEASED
The South Australian Freight Council’s CEO Evan Knapp spoke with DCN
about the release of its report Moving Freight 2019
In relation to the Moving Freight
report what response have you
received, if any, from government
and stakeholders?
Responses to Moving Freight have been
overwhelmingly supportive so far –
particularly from other associations that
represent key freight customer groups
and individual transport modes.
An online poll run by the local
Murdoch press found 75% public
support for our ‘South East Link’ concept,
with almost 900 responses. That was
particularly gratifying, as it’s not always
easy to develop public support for
freight related initiatives. The local
Commonwealth MP didn’t like the
concept – but rejecting it won’t change
the fact that a rise in road freight is
unavoidably coming to her electorate
when other infrastructure is completed.
We are not expecting any official
government response prior to the
release of the 20 year State Infrastructure
Strategy, but individual discussions have
been positive.
Did the Freight Council anticipate
any significant modal shift away
from road or increase in freight being
carried by sea in its analysis for this
report?
Adelaide has some of the best, if not the
best, road freight links to its container
port of all mainland capital cities (noting
that some work on the final links is
required). Road train movements
account for around a third of all container
movements to FACT (the Flinders
Adelaide Container Terminal).
Coupled with the inbuilt difficulties
that short haul rail has to overcome,
it’s difficult to see the road dominance
being overcome without government
intervention to force modal shift.
While we’ve previously called for
a loosening of the current cabotage
rules to promote better use of the ‘blue
highway’ in Australia, the simple fact
is that there has been little positive
movement in this area despite it being on
the agenda for at least a decade.
Naturally there is an expected total
growth of both bulk and non-bulk export
sea freight over time. This could be
significant if a number of mining ventures
are developed – particularly the Braemar
province – but there are infrastructure
challenges to be overcome first.
What do you think are the most
critical port/shipping related findings
of the report?
Critical freight transport infrastructure –
including ports and port freight links – need
to be better protected from encroachment
by non-compatible uses. The economic
costs of allowing ports to be constrained
are both massive and (at least in South
Australia’s case) avoidable. In essence,
state planning systems need to embrace
a ‘principle of prior use’, protecting
freight infrastructure and banning noncompatible
developments.
It’s pleasing to see that the National
Freight and Supply Chain Strategy has
embraced this principle at SAFC’s urging,
but we will need to see principle turned
into action quickly to avoid some of the
issues already being felt at certain east
coast ports.
South Australia has also seen a deluge
of regional port proposals in recent
years – far more than are actually needed
or that we have the freight to support.
While the need for new regional freight
ports is real, the number of proposals is
changing risk dynamics and paralysing
development.
In relation to the Eyre Peninsula,
did the Freight Council see merit in
coming up with a means by which
grain could still be transported by rail
rather than moving this to road?
SAFC argued long and hard for
government intervention to keep the
Eyre Peninsula rail lines open, including
taking the issue directly to ministers,
but were ultimately unsuccessful. Early
draft versions of Moving Freight had
support for the EP rail lines in our top
three ‘urgent’ projects.
This changed to calling for urgent
EP road safety upgrades once the
decision to cease grain transport was
made and bedded in. We are concerned
that roads and communities on the
EP are not prepared for the significant
additional truck numbers that the rail
closure will create.
What’s next for the SA Freight
Council in relation to this report and
attempting to get action on at least
the most urgent projects?
Our first priority will be to see the
infrastructure priorities outlined in
Moving Freight embedded into the
20 Year State Infrastructure Strategy.
Looking at the other submissions to the
strategy and the high level of support
for many of the initiatives we have put
forward by other influential groups, we
have a high level of confidence that this
will be achieved.
Then the long process of encouraging
Infrastructure Australia submissions by
government and gaining Commonwealth
and State budget support begins.
We are ready for this challenge.
Evan Knapp, CEO,
SA Freight Council
SA Freight Council
42 October 2019
thedcn.com.au

equipment has been installed, including weighbridges, automated
sampling probes and bunker walls.”
The port will have three 8000 tonne silos plus a road intake
building, and will be able to receive 1000 tonnes of grain an hour with
an outturn of 1500 tonnes an hour on to a transshipment vessel.
A transshipment vessel, the Lucky Eyre, has been fitted out with
material handling systems in Shanghai to load ocean-going vessels
about five nautical miles off the coast.
The team behind another project at Port Spencer remains
hopeful it will be operational for the 2020 grain season although
the timeframe for approvals and construction is becoming tight.
FREE Eyre Limited subsidiary Peninsula Ports has secured
early involvement with four contractors to get a running start on
construction once the new port gets the green light from authorities.
“We’re a small company with big aspirations. We’re doing it on
behalf of our 475 shareholders, who are principally grain farmers
on the Eyre Peninsula. This hasn’t been done in South Australia for
40 years,” FREE Eyre chief executive Mark Rodda tells DCN.
He is confident the port will be built and will be servicing the Eyre
Peninsula farming community by 2021, if not sooner.
“There’s been a number of other proposals to build port facilities
in South Australia. Most of them are just talk,” he says.
“We’ve got 40 people working on the project, between us and the
contractors. This is not a talkfest anymore. There’s a lot of money
being spent to get this right.”
FREE Eyre began moving full steam on the project after its
purchase of 140 hectares of land from minerals company Centrex
Metals settled on June 3 this year.
The two companies had been working together on a joint port
project in 2012-13 which had been given major project status by the
South Australian government.
However, when Centrex decided to pull back on its mineral
operations in the region, FREE Eyre decided to go it alone.
As the market is improving in the
mining sector we are seeing some
great potential...
Stewart Lammin, Flinders Port Holdings
FREE Eyre has opted for a modular jetty design, as used by Rio
Tinto in Queensland, which will save construction time and has
brought the expected capital cost down to $50-60m compared with
the original Centrex Port proposal with a traditional deep sea jetty,
capable of handling cape-sized vessels.
“Had it not been for this new design and construction of the
jetty, we wouldn’t have been having this conversation.
“We wouldn’t have been able to afford a jetty just for grain,” Mr
Rodda says.
The design will cater for vessels of Panamax or post-Panamax size
which Mr Rodda says would cater adequately for vessels carrying grain.
Mr Rodda says FREE Eyre expected the new port to handle about
800,000 tonnes of grain annually.
He says about 2.6 million tonnes of grain is grown in the Eyre
Peninsula region on average, of which about 1.6m tonnes should
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thedcn.com.au October 2019 43

SOUTH AUSTRALIA
go through Port Spencer based on freight costs alone, making an
800,000 tonne goal achievable.
The use of bunker systems and the fact the port will not
be landlocked mean that the port can also move quickly to
accommodate growth.
“If we go fairly well, we could expect to receive more grain very
quickly,” he says.
Mr Rodda expects the new port would bring much-needed
freight savings and competitiveness.
“We think this could be a $30m saving to the farming
community every year,” he says.
The company is aiming to start construction in the first quarter
of next year and operating by December 2020. But Mr Rodda says
”there’s a strong likelihood we’ll be operating by the 2021 season”.
PORT INVESTMENTS
Aside from the work being done at FACT, Flinders Ports’ major project
is the Outer Harbour Channel Widening Project at Port Adelaide.
Mr Sleath says the $80m dollar investment by the company
will put Port Adelaide at the same level as the largest ports in the
country and will enable the world’s biggest cruise and container
ships to berth in South Australia.
Dredge specialist Boskalis has been contracted to undertake the
widening project.
The channel is being widened by 40 metres to allow post
panamax-sized vessels to call to at the port without restrictions.
The project has involved the removal of 1.6m cubic metres of
sediment and will result in new port limits for the outer harbour of
350 metres maximum LOA and 49 metre beam, while the channel
depth will remain at 14.2 metre.
“This is a vital project for the state as 99% of our imports
and exports by weight are transported through our ports and all
containers through the Flinders Adelaide Container Terminal,” Mr
Lammin says.
Mr Lammin says that a smaller scale project – but one which is still
hugely important – is Flinders Ports’ investment in infrastructure in
the fishing, seafood and tourist centre of Port Lincoln.
“Over the coming five years, we expect to continue investment
of between $15–18m in the maintenance and upgrading of our
critical infrastructure,” he says.
“This expenditure will be reflected across a broad range of assets,
such as the regional wharves, fuel berths, the main jetty and
various fenders/mooring structures.”
Tourism is providing strongly for South Australia through the
cruise industry.
Mr Lammin says the popularity of cruising as a holiday choice
has seen a significant growth in the number of cruise ship visits.
February was a record-breaking month for cruise ships and the three
months to March were up nearly 25% on the same period last year.
He says Flinders Ports is working with the South Australian
Tourism Commission to expand the industry.
In the coming cruise season, Wallaroo will be introduced as a
new South Australian cruise destination with the cruise ship Vasco
De Gama visiting the port three times.
“SATC has a strong strategy and an ongoing commitment to
increasing the number of cruise ships visiting South Australia.
Their strategy predicts 100 cruise ships to Adelaide by 2020,” Mr
Lammin says.
“We were thrilled to be advised that Princess Cruises announced
13 additional visits to Adelaide in the season 2020/2021.
“As the Outer Harbour Channel Widening Project is nearing
completion, Flinders Ports is working with the cruise lines to assess
the ability to bring in larger cruise vessels in future.”
Mr Lammin says an upgrade to the passenger terminal at
Port Adelaide, the gateway to Adelaide, has been well received by
passengers during the last two seasons.
He says investment in core infrastructure such as the ports is
vital to the South Australian economy.
Adelaide’s container terminal alone supports more than 6000
jobs, while annual exports through Port Adelaide exceed $8bn and
imports, $6.5bn.
“It is vital to continue investment such as this to ensure the
success of the significant local industries such as fishing, grain,
petroleum and fertiliser industries,” Mr Lammin says.
Flinders Port Holdings
44 October 2019
thedcn.com.au

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MARITIME ENGINEERING & SALVAGE
The submerged
Southern Phoenix
is surrounded by
250 metres of
Lamor Deep Sea
Inflatable booms
with skimmers,
pollutant
recovery and
storage pods
Removal of the Southern Phoenix
Salvager officer from Pacific Towing,
Ian Stevens, writes about the broad
expertise and co-operative effort
required to relocate and sink a stricken
container ship in Fiji
Pacific Towing (PNG) Ltd, a provider of diverse marine
services, including towage and salvage in Oceania and South
East Asia, has successfully and cost-effectively completed the
wreck removal of container ship the Southern Phoenix in Suva
Harbour, Fiji.
The wreck removal utilised as much Fiji local expertise as
possible and capitalised upon PacTow’s extensive experience in
salvage and smaller scale wreck removals in the region.
The Southern Phoenix (88m–4285t DWT) became unstable whilst
loading at Kings Wharf, Suva on May 6, 2017 and rapidly developed
an uncontrollable port list.
The crew were evacuated and swift action by Fiji Ports
Corporation and local tugs allowed the vessel to be moved clear
from the wharf, prior to it settling on its port side in 11 metres of
water around 140 metres from Kings Wharf.
The fuel and pollutants were removed successfully by another
salvor. An international tender to capable salvors and companies
for the removal of the wreck and its cargo was later issued.
EARLY STAGES
During the tender process and assessment of the tender document,
the Southern Phoenix continued to settle into the sea bed which
caused the two port side crane pedestals to become bogged. The
exact extent of remaining cargo was difficult to appraise but it was
apparent that about 25 TEU of deck cargo remained attached. The
hold cargo (that is, 350x12m power poles and 350 pre-cast concrete
units) was estimated to be 101 TEU.
PacTow, with its headquarters in Papua New Guinea and another
business in Solomon Islands, was keen to offer a salvage solution
to this casualty within its geographical footprint and during the
Southern Phoenix project it established a business in Fiji.
PacTow was aware that the limit of exposure the owners had
available had been diminished by the removal of pollutants. An
innovative and cost effective local solution was considered to be
the most preferable. The solution involved close co-operation with
the Maritime Safety Authority of Fiji, the Fiji Ports Corporation,
casualty owners and several local companies. A particular
emphasis was placed on the containment and treatment of any
residual pollution.
In November 2018 PacTow began mobilisation of equipment and
personnel. This was no mean feat in a region of far flung island
nations. The project necessitated major equipment purchases from
Australia, namely a 180’x60’x12’ Deck Barge M&R03, as well as
a Hitachi K600 crane with 150-tonne capacity. The crane was
installed on the barge in Cairns.
Additional salvage and dive equipment from PacTow’s base in
Port Moresby was delivered to Cairns by the company’s salvage tug
Vulcan. Specialised ground tackle, winches and hydraulics were
sourced from PacTow’s partner, Perrott Salvage, loaded on the barge
and then towed to Suva by the Vulcan.
A team of experienced salvors, commercial divers and local tradesmen
were mobilised to coincide with the barge’s arrival in Suva.
THE PLAN
PacTow’s plan was to take control of the wreck and surround
it with 250 metres of Lamor Deep Sea Inflatable booms with
skimmers, pollutant recovery and storage pods supplied by longterm
associates at Swire Pacific Offshore in Singapore.
Given that the wreck had settled six metres since floundering,
the dive effort was more complex than initially anticipated.
However, PacTow’s experienced dive team commenced the release
and removal of deck cargo to allow the crane to handle it. The
logistics of consolidating the salved containers ashore was via a
46 October 2019
thedcn.com.au

local barge sourced by the Southern Phoenix’s owners. Local tug
assistance was also provided.
Whilst these works were progressing, engineering works were
underway to allow salvors to set up and cut through the crane
pedestals using diamond wire sawing. Additional equipment to
chain cut the superstructure and funnel were also set up.
Removal of the cargo hatches required divers to work in close
collaboration with deck and crane crew. The divers worked down
to 17 metres in limited to zero visibility. The hatch covers were
removed onto the seabed to allow them to act as ‘landing skids’
for removal of the cargo in the hold. They were later recovered and
delivered to the vessel’s owners for disposal.
Two 12-tonne deck-mounted winches were utilised to drag the
containers onto the hatch covers, allowing them to be recovered
by a straight lift from the crane. The cargo within the hold was
in disarray due the concrete modules and power poles having lost
their lashings.
HOW THE PROJECT UNFOLDED
By January 2018 the hold had been cleared of all cargo which was
consolidated ashore. The emphasis was then on the removal of
both pedestal cranes which were set into the seabed. The cutting
of them using a diamond wire went well and the cranes settled on
the seabed, allowing them to be individually picked up below the
barge and lashed using 150-tonne Dyneema grommets. The cranes
were then taken to a designated dumping ground beyond the 1000-
metre contour where they were released via use of explosive cutters
to the grommets.
After disposal of the cranes, the superstructure and funnel
were cut using a more traditional chain cutting process. Dyneema
grommets and explosive cutters were once again used, allowing for
a controlled release in the designated dumping ground.
Prior to parbuckling, all of the fuel tanks that had contained
hydrocarbons, were again stripped out to eliminate the risk of
any pollution.
The remnant hull lying on its port side was then prepared for
parbuckling and re-floating. Considerable naval architectural
modelling revealed that it would be best to parbuckle the hull
upside down and to re-float it in this mode.
The modelling, conducted by Glanvilles Naval Architects in
Cairns, identified a greater degree of stability in this mode due to
the hold being a full-length hold, and that to re-float upright would
create too many free surface issues. Fittings were installed on
the hull and also internally in the holds into DB tanks to assist
the parbuckling.
On March 12, the hull was successfully parbuckled and
settled on the seabed at a depth of 11 metres.
On April 16, the hull was re-floated and multiple leaks
identified including the stern seal, engine room plating and fore
peak. Considering that the ship had been submerged for almost
two years these leaks were not unexpected.
After conducting hull repairs it was ready for final re-floating
and towing to the dumping ground. This stage in the project
was dictated by available weather windows to allow for the hull
to be towed upside down whilst being maintained in a stable
condition with air feeds to ballast tanks, DB tanks, engine room
and the fore peak. The hold was fitted with six vents to prevent the
accumulation of excess air, resulting in a destabilising longitudinal
free surface effect.
On May 25, the hull was slowly towed from Suva Harbour to
the designated dumping location 9 NM from Kings Wharf. The
tow and disposal went as planned and the Southern Phoenix was
successfully sunk in 1000 metres of water with no pollutant release
or untoward incidents. There were no safety issues, including lost
time injuries, associated with the project.
Pacific Towing services Oceania as well as South East Asia and is
a full member of the International Salvage Union.
Pacific Towing designed an ingenious
and low-cost wreck removal solution
whereby the Southern Phoenix was
re-floated and towed upside down to
its final dumping ground
Pacific Towing
Salvage equipment including a barge
and crane were mobilised from Papua
New Guinea, Australia and Singapore
for the wreck removal project
The project necessitated 1,183 dives resulting in over 1,000 hours
bottom time. There were zero safety issues and LTIs
thedcn.com.au October 2019 47

MARITIME ENGINEERING & SALVAGE
When technology
meets ocean
Dynamic Under Keel Clearance ® technology integrates a number of scientific fields
to solve the complex problem of optimising port operations, writes Paula Wallace
OMC International’s DUKC product is an Aussie technology
that enables core calculations to execute safe under keel
clearance and delivers value through increasing vessel drafts
and sailing windows.
Critically, it draws on expertise in hydrodynamics,
oceanography, naval architecture, surveying, pilotage,
environmental and maritime engineering, data processing,
artificial intelligence, and cloud computing.
“An operational DUKC is more than an under keel clearance
calculator,” OMC chief executive Peter O’Brien tells Daily Cargo News.
“It brings together a specific range of engineering disciplines from
differing technical backgrounds and skills around a product and
service offering that is greater than the sum of its individual parts.”
For some clients, DUKC has delivered an average benefit of
a 0.60-metre to 1.0-metre draft. This can equate to as much as
15,000 tonnes of additional cargo per vessel. In the example of iron
ore, this is USD$1.35 million in additional revenue per vessel.
“Another example is increasing the draft of import tanker
vessels. A terminal operator has stated that every 10 centimetre
increase in draft equates to a $1m cost saving per annum,” Mr
O’Brien says.
As the technology has evolved, it has expanded to other
applications including channel design and dredge optimisation,
voyage planning, and port capacity modelling.
There are numerous examples where the implementation
of DUKC and channel optimisation has reduced the dredging
requirements, resulting in cost savings of millions of dollars.
HOW DUKC WORKS
Ports need to know how deep each vessel can safely be loaded, and
when it is safe to sail that vessel. The margin between the vessel
and the seabed is called the under keel clearance. Traditionally, this
is determined using static rules.
Static rules comprise a fixed UKC requirement to determine
times of sailings and/or maximum sailing drafts. This fixed
UKC requirement must account for a range of conditions, and
does not consider individually the factors that influence UKC. In
reality, these factors change dynamically depending on vessel,
channel and environmental conditions. The implication is that
the static UKC rules typically must account for some level of
uncertainty to accommodate the expected range of scenarios
and conditions.
“Adopting a one-size-fits-all approach generally results in an
inefficient operation,” Mr O’Brien says.
“Furthermore, the assumptions on which the static UKC rules
were originally based also change over time. Often, the static UKC
rules themselves are not reviewed in line with the changes to the
underlying assumptions.”
Examples of changes to port operations that may influence the
applicability of a static UKC regime include vessel size, transit
speed, channel depth profile, transit time, and changes to port
layout resulting from new berths or dredging.
“The safer alternative is a dynamic UKC approach through the
DUKC system which was developed by OMC. DUKC is a physicsbased,
cloud-hosted, e-Navigation system that accurately calculates
vertical motions of vessels,” Mr O’Brien says.
Integrating in real time data from the Port’s IoT devices,
the calculations consider a multitude of factors including the
environmental conditions (waves, tides, currents, etc), the details
of the ship and how it is loaded, and the transit specifics such as
OMC
48 October 2019
thedcn.com.au

speed and channel bathymetry. This increased accuracy means that
individual components of navigation risk are identified, quantified
and mitigated, thus providing users with the required data to
maximise shipping operations and port capacity through individual
vessel-based berth and transit planning.
ENVIRONMENTAL BENEFITS
Aside from the risk mitigation aspect of DUKC (i.e avoiding
groundings), there are two key environmental benefits, namely
fewer vessels for the same amount of cargo and less dredging.
“Looking at just Australia’s iron ore exports from the Pilbara
for the past year, the direct contribution of DUKC is estimated to
have reduced the fuel costs by USD$130m and the CO 2
emissions
by 1.2m tonnes,” Mr O’Brien says, adding that this is equivalent to
taking around 255,000 passenger vehicles off the road for one year.
More broadly, the Voyage Planning functionality allows shippers
to nominate the optimal vessel for a sailing time, as well as
providing the ability to plan port arrivals around sailing windows,
thereby optimising engine efficiencies and commensurately
reducing fuel consumption and emissions.
A DUKC optimised channel design coupled with an operational
system using the same engine allows for a channel design that
accurately identifies the minimal dredging requirements to achieve
the throughput goals of the port.
“Simply put, less dredging means less dredge spoil and associated
environmental effects. One recent example resulted in DUKC
reducing the dredge volumes by 43% when compared with
traditional approaches,” Mr O’Brien says.
Technological benefits
The benefits and efficiencies of OMC’s technologies
accrue across the port’s value chain. For example:
• DUKC allows more cargo to be shipped on fewer vessels,
increasing the overall throughput for the port, whilst
reducing the freight costs for the shippers.
• DUKC and dredge optimisation minimises the need to
dredge, reducing the overall volume and/or frequency.
• DUKC increases the available sailing windows, allowing
vessels to arrive/depart earlier, or load for longer,
thereby improving berth utilisation and giving the port
operational flexibility to optimise resource allocation
(tugs, pilots, etc.).
• The Dynamic Port Capacity Model allows ports to identify
bottlenecks and understand the implications of changes
to the operating environment. These include port-specific
changes such as dredging, new berths, a change in the
number of tugs/pilots, or changes across the industry
such as the trend towards larger vessels.
• Through the DUKC platform, accurate and up-to-date
information can be made available to all stakeholders
in real-time, which promotes collaboration, reduces
miscommunication and errors, and improves both the
speed and quality of decisions.
TMC Marine - providing expert advice and support
internationally to the marine industry since 1979
WRECK REMOVAL
SALVAGE
TECHNICAL ANALYSIS
TMC provides expert advice to clients on a wide range of marine issues, whether it
is attendance at a casualty, technical investigation and support during court
& arbitration proceedings, or consultancy, surveys and audits.
EUROPE • ASIA • AUSTRALASIA • THE AMERICAS
TMC MELBOURNE OFFICE: +61 3 8630 2911
CLAIMS AND ACCIDENT
INVESTIGATION
www.tmcmarine.com
thedcn.com.au October 2019 49

MARITIME ENGINEERING & SALVAGE
Marine
engineering in an
autonomous future
Gamini Lokuketagoda, lecturer marine
engineering, Australian Maritime College
As autonomous shipping becomes more
widespread, could the marine engineer
of today cease to exist? Paula Wallace
asks the experts
Before getting into any in-depth discussion about the rise of
autonomous shipping or unmanned vessels, it’s important to
be clear what we mean by these terms.
At the most basic level, to run a ship between two ports
involves safe navigation and reliable propulsion machinery.
To run a ship without the human element, will require that both
these functions are automated.
Gamini Lokuketagoda, lecturer in marine engineering at the
Australian Maritime College explains this further: “The term
autonomous sounds like that the ship is operating on its own.
However, in the path to fully autonomous running of ships we need
to go through three stages”.
These stages are outlined further in the boxed section. Basically
this suggests that there will be several critical stages to achieve
before we can truly say that a ship is autonomous.
The development of autonomous shipping will radically change
the role currently performed by marine engineers with some
suggesting that it will be re-classified into two or three different
roles in the future.
APPLICATIONS OF AUTONOMOUS VESSELS
Initially at least, autonomous vessels need to operate close to shore
of a country which is trialling them. From the viewpoint of the
design of the ship, it must be rather small to be operated in shallow
waters and this will require a small engine.
“Since the conventional reciprocating engines have many
moving parts, it is always better to go for electric motors which
have only one moving part, rotor, which make it more reliable,” Mr
Lokuketagoda says.
“Besides it frees up space in the engine room which can be
utilised to carry cargo. The space that is used for fuel can be used to
store batteries to power the propulsion motor.”
An example for this is the world’s first autonomous vessel Yara
Birkeland. This 120 TEU container ship is scheduled to be operated
as a semi-autonomous ship for a period before becoming fully
autonomous later.
Another aspect of un-manned operation is the legal implications
arising from accidents and pollution. At the start these can
be resolved if the ship operates in the flag state waters as only
one jurisdiction is involved. However, laws need to be drafted
globally for future unmanned operation of vessels across different
jurisdictions to address the indemnity of ship owners, operators,
coastal states, underwriters etc.
Mike Wilson, marine engineer and director, TMC Marine, says,
“I see fully autonomous or unmanned vessels developing in safe
sheltered waters routes initially on vessels such as small container
feeders or ro-ros.
“These routes normally have a base at each end of the
trading route with a level of autonomy for loading and
discharging already in operation. This would give way to
effective monitoring and maintenance of such vessels whilst
operating in relatively calm waters.
“Although a fully autonomous ferry has been built and proved
in Finland there has to be a certain level of manning onboard for
safety and insurance purposes.
“This is a concept vessel that proves autonomous vessels will be
a thing of the future however whilst there are vessels sailing with
a human element, especially in navigation, there will always be a
risk,” he says.
WHAT ROLE FOR MARINE ENGINEERS?
Mr Lokuketagoda says a semi-autonomous ships in its early stage
will have one marine engineer onboard depending on the number
of sailing days and how far it is from a coast. However, in the
second stage of remotely operated vessels, there won’t be any
AMC
50 October 2019
thedcn.com.au

TMC Marine
Stages of autonomous shipping
STAGE ONE: Semi-autonomous ships with a skeleton crew
standing-by to intervene in the operation of the ship if
something goes wrong and that cannot be corrected by the
remote operator.
STAGE TWO: Remotely-operated ships that will be run by
remote operators without anyone onboard.
STAGE THREE: Autonomous ships with a remote operator
will be replaced by a computer which determines speed and
course of the ship for safe navigation and controlling the
machinery on its own for propulsion.
marine engineers as the reliability of machinery and their control
is established beyond any reasonable doubt.
“Marine engineers will be the remote operators of the autonomous
vessels, operating a vessel from a shore-based control station
depending on the operating route of it,” Mr Lokuketagoda says.
He believes that when an autonomous ship is being built in the
future, in a shipyard, its “digital twin” will be built alongside the
ship in a software developing lab.
“The digital twin will be the computer-based software twin of
the ship which replicates each and every function and behaviour
of the physical ship exactly the same way. The remote operator
operates this digital twin which is connected with the physical ship
through cyber space,” he says.
Mr Wilson says it is inevitable that the onboard ships engineer
as we know them will disappear.
“A ship’s marine engineer is a ‘hands on’ engineer and can turn
his hand to most things onboard. However on an autonomous
vessel the role of the ship’s engineer will be taken by numerous
personnel ashore all specialising in their own particular area.
“The present chief engineer may find themselves sitting in a
control room ashore,” he says.
However, the marine engineer will play a critical role in the
developmental stages of autonomous shipping.
“Marine engineers will play a huge role in the development stage
as it will be their practical knowledge, experience and feedback that
will be used by machinery manufacturers to drive how machinery
and vessels react to certain situations,” Mr Wilson says.
CHANGING SKILLSET
Mr Wilson says that as technology develops, the unique skills of a
ships engineer will disappear however we will still need engineers
to monitor and manage maintenance.
“More shipping companies are using manufacturers personnel
for maintenance and fault finding as technology overtakes or
overloads the knowledge of the ships engineer,” he says.
In this new world, operational technicians would replace marine
engineers and the need for a ship’s engineer would dwindle.
However, Mr Lokuketagoda believes marine engineers will
still be required to remotely operate autonomous ships and to
repair and maintain machinery on autonomous ships when the
reach a port.
“Some say that there is a third category of marine engineers,
those who are involved in building ships,” he says.
The transformation of the job context of marine engineer
requires drastic changes in training and education requirements,
according to Mr Lokuketagoda.
The current global education/qualification regime for marine
engineers is dictated by the International Maritime Organization
convention on Standards of Training, Certification and Watchkeeping
(STCW). For all marine engineers it prescribes competence
in four functions, namely marine engineering (1); electrical
electronics and control engineering (2); maintenance and repair
(3); and controlling the operation of the ship and care for persons
onboard (4).
“For autonomous shipping with unmanned ships, the functions
(3) and (4) will become superfluous as there won’t be any persons
onboard. Invariably this leaves the future marine engineers with
competence only on the first two functions,” Mr Lokuketagoda says.
“This completely changes the role of the marine engineer from a
skill based ‘hands-on’ engineer to a ‘brain-based’ strategic planner.
“This means instead of teaching marine engineer trainees to
do welding, gas cutting, lathe operations, fitting etc., we need to
teach them principles of mechanics, thermodynamics, electrical,
electronics, networking and control engineering to operate a myriad
of machinery involved in propulsion and navigation,” he says.
MORE OR LESS OPPORTUNITY
Given that the future role of marine engineers will require no
time at sea, this raises the question of whether this will make the
profession more accessible to a wider range of people.
“At present the marine engineers get a very lucrative
remuneration as they spend time away from home out at sea.
However, in future marine engineers will not be required to spend
time away from home,” Mr Lokuketagoda says.
“The shipping companies may not pay them the high
remunerations as they may be doing an eight hour-shift job.”
However, the number of jobs overall may increase as each
ship needs four remote operators on shift duty and a repair/
maintenance team.
“This is similar to what happened when computerisation
of various operations in offices took place.
“Computerisation helped to cut-down the number of staff
members who did manual data entry operations. However, it
created/increased the information technology jobs,” he says.
Mr Wilson doesn’t think there will be many opportunities to
become a marine engineer in the world of autonomous shipping,
at least not as we know the role now.
“There will be opportunities ashore for operators and
technicians, some of whom will work intermittently onboard but
perhaps not whilst underway.
“Shipowners and managers will still require a technical staff to
monitor and maintain vessels which will require a certain amount of
knowledge but the hands-on practical approach will be lost,” he says.
Mike Wilson, marine engineer
and director, TMC Marine
thedcn.com.au October 2019 51

MARITIME ENGINEERING & SALVAGE
Business of
being prepared
Crew being trained with tug Gabo
Contrary to popular belief, the salvage
market doesn’t simply rest on its laurels
when maritime casualties are not
occurring, writes Marianne Welzel from
Ardent Oceania
Ardent Oceania, being responsible for the Oceania region’s
maritime preparedness and salvage operations, has successfully
undertaken several high profile emergency response and wreck
removal projects since it began operations. In the 2000’s,
casualties such as Rena, Pasha Bulker and Shen Neng 1 will be
remembered by many, and were assisted by Svitzer Salvage Australasia
as Ardent was formerly known.
Most recently, Ardent was engaged by the owners of a bulk
carrier and its P&I Club to assist it after an internal fire. Ardent
was contracted to remove approximately 600 cubic metres of heavy
fuel oil, 8,200 metric tons of contaminated fire water and over 300
cubic metres of sludge waste from within the ship to prepare the
vessel for recycling.
Ardent pumped out the HFO from within the cargo discharging
spaces, the contaminated wastewater and sludge. All fluids were
handled and disposed of in certified facilities under the orders of
the local EPA.
After the cleaning was concluded and the necessary sign-offs
received, including Basel Convention permissions, the vessel was
prepared and towed on her last voyage to the chosen recycling facility.
The project required nine months of full-time presence in
Port Kembla, by up to 25 full-time salvage engineers, related
subcontractors and labourers at any one time.
PREPARED FOR ANYTHING
Based out of its large 10,800-square-foot warehouse in Ingleburn,
Ardent undertakes a host of activities that enable it to be a trusted
maritime partner, including training and preventative consultancy.
This is in addition to the constant work of replacing, maintaining
and ensuring compliance of all existing equipment. This equipment
ranges from one extreme of the engineering spectrum to the other,
including oil spill response, electrical, pumping, rigging, carpentry,
welding, diving operations, cutting, cargo handling, towing,
communications, vessel safety and of course general workshop and
tool requirements.
The crew also needs to keep up-to-date with safety courses and
certification. For instance the crew are fully HUET certified and
have confined spaces clearance just to name a few of the many
ongoing clearances the salvage crew need to maintain to ensure
a constant state of readiness. This also includes having an army
of able and fully trained contractors; equipment and logistics
providers on stand-by at all times.
Ardent maintains ongoing consultancy agreements with
organisations such as the Pilbara Ports Authority and Teekay
Shipping in addition to being the Contract Manager and training
partner for AMSA’s ongoing Emergency Towage Capability (Level 2)
Contract with Svitzer. The latter necessitates regular training drills
on selected tugs, in order to maintain the high skill levels of crew
onboard to prepare them for any sudden emergency situations. The
in-house training program developed by Ardent for tug masters and
crew has been awarded Lloyds Accreditation.
Extensive advisory and purchasing assistance is also provided to
tug masters when replacing onboard equipment on the many tugs
around Australia.
Less hands-on training and preventative consultancy occurs
in the shape of the Salvage Academy being offered by Ardent,
as well as senior salvage master Captain Drew Shannon
presenting at conferences around Australia on preventing and
preparing for casualties.
Maritime preparedness
The maritime preparedness education of the industry
revolves around the important aspects of:
contingency planning in case a vessel is adrift;
• support in providing emergency towage assessments
whereby support is provided to the Captain onboard;
• consultancy in the event of a grounding, issuing of salvage
plans and negotiations with authorities;
• how a shipowner representative needs to respond in
certain monopoly areas such as Egypt, China etc; and
• modelling and naval advice.
As well as training onsite crew and support staff how to
assess their preparedness for a marine casualty and identify
resources and gaps in preparedness.
Ardent Oceania
52 October 2019
thedcn.com.au

TMC’s Captain Roger King
When disaster
comes from afar
management plan which was
prepared by PacTow and then
jointly presented to the Port
Moresby Harbour Master
and Papua New Guinea
National Maritime Safety
Authority. This included a
request for the provision
of a place of refuge, risk
assessment, measures
for protection of the
environment, casualty
security, provision of safe
anchorage and a depollution
and salvage
plan for the dredge.
TMC MARINE
Captain Roger C.King, director of TMC
Marine and member of Lloyds Panel of
SCRs, discusses several notable marine
casualties that TMC Marine’s Australian
office has attended recently
In February, TMC attended the Solomon Trader casualty, which
had grounded on Rennell Island in the Solomon Group. Rennell
Island is geographically unique as the largest raised coral atoll
in the world. The island’s steep-to coastline is surrounded by
a narrow lagoon bounded by a coral reef with the two main
ports being located in Kanggava Bay. These “ports” consist of rock
bulldozed out to the reef edge from which barges are loaded with
bauxite or logs for transhipment to vessels anchored offshore.
Access to the island is via bush airstrip however supply and logistics
is via landing craft or supply boat.
Whilst not a particularly technical salvage, Resolve Salvage
applied proven methodologies, hard work and engineering ingenuity,
while enduring difficult circumstances including ransacking of the
casualty by locals prior to TMC’s arrival as first responder.
Ultimately the Solomon Trader was de-polluted and successfully
refloated thus avoiding ongoing reef damage through wreck
degradation. As the salvage team worked on the “steamer” (motor
ships are not in the local vernacular), a Resolve oil spill response
team cleaned the shoreline of the bay.
Ironically, it was on the salvage tug Redcliffe that I attended
the same vessel in 2002, then named Dorik Chariot, when she
grounded on Piper Reef, Queensland.
THE WOMBAT
TMC also attended the dredger Wombat which capsized in the Coral
Sea, east of the Great Barrier Reef whilst on tow from Port Moresby
to Cairns.
Appointed salvor PacTow and TMC set sail from Port Moresby to
inspect the Wombat at sea. The dredge was inverted but stable and
not emitting hydrocarbons. A casualty risk assessment, including
potential passage planning through the reef, was conducted.
The decision was made to resupply the towing vessel Vulcan and
return the casualty to Port Moresby. TMC approved a casualty
ONSHORE ADVICE
Not all work requiring maritime expertise happens at sea. TMC
engineer consultant Mike Wilson acted as marine adviser for
an insurance company when a barge sank on a mining pond at
a remote mine site in Victoria. Situated almost 500km from the
nearest coastline, floating resources were few and far between.
Recovery and repair of the barge required pumping the water
from the pond to a higher level reservoir, which took place over
several weeks due to the large volume of water. Once the pond was
empty, earthmoving machines built a level platform adjacent to
the barge and docking blocks were installed. Then, with flotation
attached to the barge, the pond was re-filled and the barge
re-floated. The supported barge was moved over blocks and the
pond was again pumped out. The barge was landed on the docking
blocks where repairs were completed before the pond was again
filled and the mining barge resumed operations.
THE KEA TRADER
TMC also continues as insurer and owner representative for the
Kea Trader wreck removal off New Caledonia. Since the loss of the
ship in 2017, TMC has maintained an active presence in Noumea
liaising onsite with contractors Ardent and Shanghai Salvage, the
French and New Caledonian authorities as well as the community.
The Kea Trader project is currently awaiting the arrival from
Shanghai of SSC’s vessel Ca Li, a 132-metre, 800-tonne crane
barge designed specifically for wreck removal in the open ocean
conditions encountered at Recif Durand.
LIQUEFACTION EXPERTISE
TMC Marine’s Australian office recently expanded with the
appointment of consultant master mariner, Captain John
Silberberg to help with the increased regional demand for
experienced maritime experts.
Liquefaction has sadly once again become topical with the total
loss of the Nur Allya with all hands. Loaded with nickel ore, she
was reported missing in Indonesian waters in August.
Captain Silberberg recently assisted as owners and P&I
representative for a bulk carrier loading a concentrate cargo
with concerns around liquefaction. He helped develop a revised
cargo sampling and testing plan for cargo already loaded and that
remaining in the stockpile. The vessel successfully completed
loading and sailed without further incident.
thedcn.com.au October 2019 53

TRADE LAW
The fog of Brexit
Just like a London ‘pea soup’, the Brexit
situation has only become more murky,
writes Andrew Hudson
I WROTE AN EARLIER ARTICLE ON
Brexit for this publication and thought it
may be a good time to review the situation
and whether there was any further clarity
on the position.
Is there any further clarity? The short
answer is no. But there have been some
developments.
WHAT HAS BEEN HAPPENING IN THE
UNITED KINGDOM?
We have watched as the UK secured a time
extension to negotiate an exit from Brexit
during which time the UK government and
Parliament have been trying to deliver a
clear map to point. But it hasn’t happened
and we have been witnesses to the UK
Parliament and political system becoming
further divided while the terms of the exit
are even less certain.
There has been a change in the UK Prime
Minister that led to a massive change to the
Cabinet. As new PM, Boris Johnson wants
a “no deal” Brexit either to force the EU
to deliver a better deal or to actually leave,
even without a deal, accepting the chaos
that follows, presumably as being loyal to
the referendum which voted for the UK to
leave the EU (even though that referendum
did not set out which form of departure
would be available or acceptable).
The ruling Conservative (or Tory) party
has splintered a number of different ways.
A proposal by the PM and his party for a
new election was rejected by Parliament
which then passed a law stating that a
“no deal” Brexit was unacceptable and
that the government had to go back and
negotiate a new deal. Which the PM
doesn’t want to do.
HARD-BALL POLITICS
Boris Johnson is on the record of saying
that there is “no way” he will agree to
delay Brexit and the only way to force
an outcome from the EU is to stand firm
on that position on the basis that the EU
would be equally at risk and would have to
further compromise. Yet, there is no way to
force the EU to give the UK a new deal.
The PM and his allies have managed to
“prorogue” UK Parliament to limit time to
vote on the terms of a new deal. That has
met with protests in the UK by those in
politics and outside politics who see that
the move by the PM represents a threat
to democracy. Attempts by the new UK
Minister responsible for Brexit to negotiate
on what could be an exit outcome have
Elena Schweitzer
54 October 2019
thedcn.com.au

Ian Ackerman
been unsuccessful as the UK isn’t quite sure
what it will (or can) offer.
BUSINESS UNCERTAINTY
As you would expect this has led to
massive uncertainty in the UK business
community and in the overseas
community which trades with the UK.
That uncertainty is taking a real toll.
Investors have reportedly withdrawn
$4.2bn from UK equity funds since late
May with capital outflows of $29.7bn since
the Brexit referendum in 2016.
According to research by the Bank of
England with about 6000 companies, that
uncertainty had lowered capital spending
on average by about 11%. The research
claims to have found a direct and causal
link between Brexit and lower investment.
The research estimates that the level of UK
productivity by between 2% to 5% over the
three years since the referendum, possible
due to work time being dedicated to post -
Brexit planning.
Other research by Make UK
(representing UK manufacturing) has
reported that UK manufacturers are halting
investment in their businesses, with even
stockpiling activity now being subdued,
leading to concerns over whether the sector
is less prepared than six months ago at the
time of the last Brexit deadline. The same
research indicated that domestic orders
are falling and that export orders have
also dropped, even though the potential
weakening of the UK currency may make
UK exports more attractive.
PERILS OF UNCERTAINTY
Uncertainty is anathema to investment
and business decisions, not just in the UK
but anywhere in the world. When you add
in the uncertainty of the US v China trade
war, disputes around access to the South
China Sea, possible moves against Iran
together with adverse economic results
then the Brexit issue does not actually
support ongoing investment whether
financial or in the purchase of goods, plant
and equipment.
Many Australian companies use the
UK as a base to enter the EU or use the
EU to enter the UK market. Either way,
the current convenient arrangements
for movement of goods, services and
employees between the EU and the UK
could be cancelled or varied. That has an
adverse impact on business continuity and
financial viability.
Whatever government and industry
says about the need to prepare for Brexit,
the ongoing uncertainty and posturing
gives parties cause to do the opposite.
Unfortunately the lack of preparation of
those parties will also affect those who have
prepared, unless some “two speed” clearance
arrangements can be entered into.
WITH WHOM SHOULD WE NEGOTIATE?
The delays and uncertainties over Brexit
have a major impact on our ability to
negotiate a free trade agreement with the
UK or to conclude discussions on proposed
new visa arrangements. Those negotiations
cannot start in earnest until the UK has
left the EU and there is certainty around
the timing or terms and conditions of that
departure. That position can become worse
if there was an election in the UK followed
by a change in government or change in
position of the current UK government.
The current trade negotiations with
the EU may well be affected, through the
uncertainty of just which countries will
Investors have reportedly withdrawn $4.2bn
from UK equity funds since late May
be in the EU. That leaves open how to
deal with the possibility of the deal being
completed while the UK is in the EU but
then leaves the EU or UK leaves the EU
without a deal and the EU is not clear on
border arrangements with the UK.
RECESSION FEARS
The impacts of Brexit on the UK and the EU
are likely to be significant. Some research
suggests that a recession in the UK will
follow a “no deal” or “hard” Brexit. At the
least there will be adverse financial and
economic effects on the EU and the UK.
The EU and the UK are already major
trading partners with Australia so
economic adversity in those countries
will have an adverse effect on Australian
companies relying on those markets for
some or all of their revenues. It is clear
that the Brexit uncertainty is already being
factored into business investment decisions.
Moreover the uncertainty is not limited to
financial and economic issues. There will
Andrew Hudson, partner, Rigby Cooke Lawyers
also be legal issues in having to manage
border controls between UK and the EU
where there have not been border controls
for many years. Australian companies will
need to separately document entry to and
departure from the UK and the EU which
has not happened before.
DIFFERING APPROACHES
There potentially will be different
standards in both markets for all manner
of goods and services. There probably will
be different quarantine obligations and
different obligations to pay customs duties
and other clearance fees.
The UK has now created its own
“trade remedies” regime so that there
could be dumping and countervailing
duties imposed on Australian goods
exported to the UK that are seen to
cause material injury to UK industries.
All of this also creates multiple new
compliance obligations keeping in mind
that political assurances rarely translate
into legal protections.
FINAL THOUGHTS
The best advice I can provide at the
moment is to remain informed from
reliable sources.
DFAT and Austrade are providing
assistance as are the UK government and
even the New Zealand government through
a dedicated web presence. There are a
number of reliable news sources online that
are also worth utilising.
Stay tuned to commentary in the DCN.
You may even wish to get legal advice here
and overseas.
thedcn.com.au October 2019 55

MARITIME LAW
The facts of liquefaction
A recent tragedy in
Indonesia shows more
needs to be done to
prevent liquefactionrelated
shipping disasters,
writes Alexis Cahalan
THE SAFE CARRIAGE OF BULK
in water pressure leads to liquefaction. If
Cargoes Code (IMSBC Code) issued by the
cargoes liable to liquefaction is integral to
liquefaction occurs, the cargo, in behaving
IMO became mandatory on January 1, 2011
the safety of life at sea. The International
like a liquid, can shift causing a vessel to
under the provisions of the International
Association of Dry Cargo Shipowners
lose stability, tilt and potentially capsize.
Convention for the Safety of Life at Sea.
(Intercargo) has identified that between
The IMSBC Code replaced the previously
2009 and 2018, 101 lives and nine bulk
“LIKE MELTED ICE CREAM”
known Code of Safe Practice for Solid Bulk
carriers were tragically lost due to cargo
There are other extraneous factors that
Cargoes. It is an internationally recognised
failure caused by liquefaction. Of these
can contribute to liquefaction occurring
code of safe practice to be followed when
vessels, six had been loaded with nickel ore
as was the case with the Padang Hawk. The
transporting hazardous solid bulk cargoes
from Indonesia, two with iron ore from
vessel loaded a cargo of nickel ore in New
on board bulk carriers.
India and one with bauxite from Malaysia.
Caledonia on July 17, 1999 and during its
The primary aim of the code is to
More recently, on August 25, 2019, the
voyage to Australia, encountered rough seas
facilitate the safe stowage and shipment of
bulk carrier Nur Allya while carrying a
causing it to roll and pitch. Some days into
bulk cargoes, to give information about the
cargo of nickel ore to Sulawesi Province
the voyage the vessel developed a 15 degree
cargo to the vessel and to identify dangers
in Indonesia, made a distress call in the
list to port. The crew on checking the cargo
and risks particular to the cargo.
Banda Sea while underway. The vessel
in the hatches found that it had settled and
Appendix 2 of the IMSBC Code includes
was carrying 25 crew members and is
shifted to port and that the cargo looked
the testing and certification requirements
feared to have sunk with all hands due
“like melted ice cream”. The master was
to be followed to ensure that the moisture
to cargo liquefaction.
able to adjust the ballast on the shipowner’s
content of cargoes is sufficiently low. These
recommendations and pump the cargo
tests include the flow table, penetration
WHAT CAUSES LIQUEFACTION?
hold bilges at regular intervals to correct
tests and the “Can Test” which provide the
Cargo liquefaction is the conversion in
the vessel listing and ultimately proceed to
shipper with a “safe” moisture content.
behaviour of a substance from solid to
Townsville. At the time of this incident there
The Can Test is a simple on-site
liquid state. It occurs due to reduction of
was no known test for the TML. The nickel
procedure for providing an estimate of
pore space between fine particles in cargoes
ore prior to loading had been stockpiled in
moisture content and is as prescribed by
such as nickel ore and iron ore due to the
areas open to the weather, which increased
section 8.4 of the IMSBC carried out by half
motion of a ship. Cargo is prone to liquefy
the moisture content of the cargo.
filling a one-litre cylindrical container with
where there is a high proportion of fine
Catastrophic loss of vessels and
a cargo sample and taking the can “in one
particles and a moisture content in excess
crews due to liquefaction has led to the
hand and bring it down sharply to strike
of the transportable moisture limit. A
International Maritime Organization
a hard surface…repeat the procedure at
TML is the maximum moisture content
codifying safe practices in relation to
one-or two-second intervals”. The presence
for a given cargo which is considered safe
cargoes susceptible to liquefaction.
of moisture on the sample surface will
for carriage in ships. The combination
of the reduction of space between the
particles with the concomitant increase
CATEGORIES PRONE TO LIQUEFACTION
The International Maritime Solid Bulk
indicate excessive moisture content. This is
used to supplement but not substitute for
laboratory testing.
Id-Video
56 October 2019
thedcn.com.au

Image supplied
Alexis Cahalan, principal lawyer,
Thomas Miller Law
IMPORTANT PROCEDURES
The code also provides instructions on the
procedures to be adopted in the carriage
of solid bulk cargoes. The master should
ensure the moisture content of cargo is not
more than the TML. Where the moisture
content is below the flow moisture point,
cargo may liquefy. The FMP is determined
by laboratory testing and is the percentage
moisture point at which a flow state
develops in a sample - that is the granular
material becomes saturated and starts to
behave as a liquid.
Since its inception, there have been
a series of subsequent amendments to
the Code (2015 and 2017). Parties were
encouraged to implement interim measures
on a precautionary basis prior to the
amendments entering into force. The latest
amendments to the IMSBC Code entered
into force on January 1, 2019. Changes
to section 4.5 of the Code stipulate
that it is the shipper’s responsibility to
ensure that the testing of the TML and
moisture content is carried out at the
correct intervals. A new procedure for
determining the test for the TML of coal
has been implemented.
KEY CHANGES
Further amendments are due to come into
effect in relation to bauxite on January 1,
2021, which is often loaded in Malaysian,
Indonesian, Brazilian and Australian ports.
The loss of the supramax bulk carrier, Bulk
Jupiter in January 2015 with the loss of 18
lives is suggested to have been caused by the
liquefaction of a cargo of bauxite.
Bauxite is normally shipped without
any processing and as it typically contains
lumps and has a low moisture content, it
is generally regarded as ‘Category C’ cargo
in the code. However, bauxite also can be
sieved by using high-pressure water. This
creates finer particles and also adds water
to the cargo.
The IMO has issued a series of circulars
which introduces a number of draft
amendments to the IMSBC Code relating
to the testing procedure for determining
the TML of bauxite and introduces a new
‘Category A’ cargo “bauxite fines” on
January 1, 2021.
As with the passage of previous
amendments, implementation of the test
procedures for the category bauxite fines is
recommended ahead of implementation.
PRE-SHIPMENT PROTOCOLS AND
PRECAUTIONS
It is important to ensure that shippers,
as required by section 4.3.2 of the IMSBC
Code, submit accurate declarations and
certificates noting the description of the
cargo and relevant data sheets; how the
cargo is treated under the IMSBC Code;
the stated moisture content of a given
cargo; and the interval between testing
and loading should not be more than
seven days.
Shippers often will be well advised to
engage independent surveyors to conduct
the necessary testing ahead of loading.
However, many bauxite and nickel mines
lie in remote locations and it can be
logistically difficult for surveyors to attend
and to remove samples for laboratory
testing. Responsibility devolves to mine
operators, port authority and the master to
make sure all necessary precautions have
been taken ahead of cargo loading. For
example, the port authority at the load port
shall provide the master with a certificate
stating “the characteristics of the cargo and
the required conditions for the carriage and
handling” of a particular shipment.
SMART TECHNOLOGY SOLUTIONS
Naval architects argue that structural
modifications to bulk cargo vessels are not
a solution as this interferes with efficiency
in that the use of grabs is prevented and the
cargo is prevented also from reaching its
natural repose. Solutions may lie in smart
technology to identify moisture levels as it
is this variable which requires monitoring
in order to avoid liquefaction occurring.
As the physical properties of cargo are
unalterable once loaded, this is not a factor
which can be monitored during a voyage to
prevent liquefaction.
Additionally, geographically relevant
testing protocols reflecting the locations
where the cargo originates may be of some
utility especially where the origin of most
affected cargoes is in tropical locations.
Precautions with bulk cargoes liable to
liquefaction are not just the responsibility
of the owners and master of a vessel.
Terminal operators, charterers and
shippers should exercise extreme care
when handling such cargoes and take into
account the IMSBC Code. The IMSBC
Code places the onus on all stakeholders
including shippers, receivers and port state
authorities at load and discharge ports to
eliminate the problem and protect the lives
of seafarers.
RISK FACTORS IN
LIQUEFACTION
Some of the factors which can
increase the risk of bulk cargo
liquefying can include:
• Heavy rainfall, monsoon seasons
and tropical weather during cargo
loading, this is a particular issue in
South East Asia;
• Open storage conditions which
prevent the cargo from drying as
was the case in the “Padang Hawk”
incident;
• In the case of bauxite using water
cannons to wash the bauxite
through sieves; and
• Pre-filtering of cargo to remove
lumps above 100mm in size and
further crushing of the particles.
thedcn.com.au October 2019 57

INDUSTRY ANALYTICS
Varied conditions and modest
prospects for winter crops
The latest report from the Australia Bureau of Agricultural
and Resource Economics reveals mixed prospects for Australia’s winter crop
WINTER CROP PRODUCTION IS
forecast to rise by 11% in 2019–20 to 33.9
million tonnes but falls short of the 10-year
average to 2018-19 by 16%.
Wheat and canola production is forecast
to increase 10% and 6% respectively, but
both are expected to fall significantly below
the 10-year average to 2018-19.
Barley production is forecast to increase
by 14% to around 9.5 million tonnes which
brings it 6% above the 10-year average.
“Crop production deteriorated in regions
across New South Wales and Queensland,
due to unfavourable growing conditions
over winter. Crop production in these states
is forecast to be very much below average,”
according to ABARES acting executive
director Peter Gooday.
“On the other hand, crops in Victoria
were in good to very good condition at the
beginning of spring thanks to generally
favourable growing conditions over winter.
“Crops in Western Australia received
timely winter rainfall to help boost yield
prospects to around average for most crops
after a late break to the season.
WINTER CROP PRODUCTION, AUSTRALIA, 2014-15 TO 2019-20 (KT)
60,000
50,000
40,000
30,000
20,000
10,000
0
33,866
2019-20 f
30,433
2018-19 s
38, 396
2017-18
f ABARES forecast. s ABAR ES estimate. Notes: Includes barley, canola, chickpeas, faba beans, field peas, lentils, linseed,
lupins, oats, safflower, triticale and wheat. Due to a change in scope by the ABS of its agricultural data collections, crop
production is shown for establishments with an estimated value of agricultural operations (EVAO) of $5,000 or more
until 2014-15, and an EVAO of $40,000 or more from 2015-16.
56,678
2016-17
37,687
2015-16
39,197
2014-15
“South Australia received sufficient
winter rainfall in most major growing
regions, but the same can’t be said for
northern cropping regions with their
prospects generally below average.
“Early spring rainfall will be important
to final crop outcomes.”
According to the latest seasonal outlook
issued by the Bureau of Meteorology, early
spring rainfall is likely to be above average
in Western Australia and below average
in most other cropping regions. October
rainfall is likely to be below average in most
cropping regions.
“If realised, above average September
rainfall in Western Australia would give
cereal crops in the state a strong chance of
achieving average to above average yields,”
Mr Gooday said.
Mr Gooday said the seasonal conditions
outlook for early spring in eastern
Australia is likely to constrain crop
prospects in southern New South Wales,
and northern cropping regions in Victoria
and South Australia.
However, there’s a good chance that
most cropping regions in southern Victoria,
and central and southern South Australia
will still achieve average yields.
Mr Gooday said outlook for summer
crops is unfavourable due to poor seasonal
conditions in northern New South Wales
and Queensland.
“Area planted to summer crops is
forecast to fall by 28% in 2019–20 to
around 758,000 hectares — production
of grain sorghum, cotton and rice are all
forecast to fall,” Mr Gooday said.
Smileus
58 October 2019
thedcn.com.au

WINTER CROP PRODUCTION AND AREA,
AUSTRALIA, 2017–18 TO 2019–20
CROP AREA PRODUCTION
2017-18
‘000 ha
2018-19 s
‘000 ha
2019-20 f
‘000 h
2017-18
kt
2018-19
s - kt
2019-20
f - kt
Wheat 10919 10919 10770 20941 17298 19102
Barley 4124 3719 4125 9254 8310 9479
Canola 3171 1893 1983 3893 2180 2304
Chickpeas 1075 303 276 998 282 284
Faba beans 313 178 194 416 217 301
Field peas 291 179 220 317 152 255
Lentils 418 303 269 543 323 343
Lupins 612 500 499 714 693 558
Oats 874 680 728 1227 888 1132
Triticale 55 66 72 87 89 105
f ABARES forecast. s ABARES estimate. Sources: ABARES; Australian Bureau of Statistics;
Pulse Australia
SUMMER CROP PRODUCTION AND AREA,
AUSTRALIA, 2017–18 TO 2019–20
CROP AREA PRODUCTION
2017-18
‘000 ha
2018-19 s
‘000 ha
2019-20 f
‘000 ha
2017-18
kt
2018-19 s
kt
2019-20 f
kt
Grain sorghum 462 496 391 1255 1278 992
Cottonseed a 526 343 145 1497 686 416
Cotton lint a 526 343 145 1058 485 294
Rice 61 5 5 635 61 59
Corn (maize) 53 55 61 387 392 430
Soybeans 32 26 25 51 42 41
Sunflower 14 19 19 26 23 24
a Cotton area is estimated harvested area. f ABARES forecast. s ABARES estimate.
Sources: ABARES; Australian Bureau of Statistics; Cotton Australia.
WINTER CROP PRODUCTION, BY STATE, 2014–15 TO 2019–20 (KT)
5,103
6,925
2019–20 f
732
6,604
14,404
2,880
3,733
2018–19 s
714
5,286
17,729
7,744
7,612
2017–18
1,438
7,022
14,510
15,510
9,513
2016–17
3,159
10,661
17,737
11,624
2015–16
2,104
6,105
NSW
3,568
11,624
Vic
10,445
Qld
2014–15
1,464
5,117
SA
7,439
14,662
WA
Kt
0 5000 10,000 15,000 20,000
f ABARES forecast. s ABARES estimate. Notes: Includes barley, canola, chickpeas, faba beans, field peas, lentils, linseed, lupins, oats, safflower, triticale and wheat. Due to a change in
scope by the ABS of its agricultural data collections, crop production is shown for establishments with an estimated value of agricultural operations (EVAO) of $5,000 or more until
2014–15, and an EVAO of $40,000 or more from 2015–16.
thedcn.com.au October 2019 59

SUSTAINABILITY
Shipping line’s bid
to protect the planet
Head of the French shipping giant CMA CGM, Rodolphe Saadé, recently announced
a number of major environmental commitments, writes Paula Wallace
“FORWARD LOOKING” AND
Rich in its unique and largely unexplored
CMA CGM believes that LNG offers
“socially responsible” are phrases used to
biodiversity, the Arctic plays an essential
the “best proven solution available” to
describe the position being taken by global
role in regulating ocean currents and global
significantly reduce the environmental
shipping line CMA CGM in several recent
climate patterns. The use of the Northern
footprint of maritime transport.
decisions. Namely, the choice to avoid the
Sea Route will represent a significant
Last month, the company announced
Northern Sea Route and the use of liquefied
danger to the unique natural ecosystems
the launch of the first 23,000-TEU, LNG-
natural gas to power its ships.
of this part of the world, mainly due to the
powered containership, the Jacques Saadé.
In 2018, CMA CGM transported nearly
numerous threats posed by accidents, oil
This major milestone in the construction of
21 million TEU, including a reefer fleet of
pollution or collisions with marine wildlife.
the world’s first LNG-powered ultra-large
385,000 TEU.
To avoid posing a greater threat to this
containership was reached at the Shanghai
The company was recently invited by
fragile environment, Rodolphe Saadé has
Jiangnan-Changxing Shipyard.
the French President Emmanuel Macron to
decided that none of the CMA CGM Group’s
The new vessel will join the group’s fleet
attend a meeting ahead of the G7 meeting
500 vessels will use the Northern Sea Route
in 2020 on the French Asia Line (Asia-
in Biarritz from August 24-26, where Mr
along Siberia. With this decision, CMA CGM
Northern Europe) and will be registered in
Saadé made the announcements.
makes the “resolute choice to protect the
the French International Register.
During the meeting, Mr Saadé delivered
environment and the planet’s biodiversity
The vessel features a state-of-the-art
to the President, on behalf of the maritime
despite the major competitive advantage this
bridge design, offering a tactical display
industry, the SAILS (Sustainable Actions
route represents for shipping companies”.
with enhanced map views for more dynamic
for Innovative and Low-impact Shipping)
Mr Saadé says, “We make these choices
navigation briefings. It also has a path
Charter. Through this charter, the 10 French
to meet the needs of our employees and our
prediction system optimised to display the
signatory shipping companies commit to
customers, who are increasingly concerned
ship’s predicted position in the next three
implementing specific actions to reduce
about the environment. But above all, we
minutes; a smart eye system projecting a
emissions of air pollutants and greenhouse
make these decisions for the future, to
bird’s-eye view of the ship’s surrounding
gases, protect whales, optimise vessel energy
leave our children a cleaner planet”.
area; and augmented reality screens.
and performance, and strengthen relations
To further improve the environmental
with the scientific community.
POWERING AHEAD
performance of the Jacques Saadé and her
“These are brave, bold choices, which
CMA CGM sees itself as a pioneer in its
sisterships, their hull forms have been
go far beyond purely business decisions,”
adoption of LNG as an alternate marine
hydrodynamically optimised. The bulb has
Mr Saadé says. “This is a firm belief for
fuel for ultra-large vessels that carry
been seamlessly integrated into the hull
us, born out of our family ethos and our
up to 23,000 containers. The group has
profile and the bow is straight.
strong human values, to make responsible,
decided to invest significantly to go beyond
These exceptionally large vessels (400
forward-looking choices. That is how we
the upcoming IMO 2020 low sulphur
metres long and 61 metres wide) will
plan to build fairer, more environmentally-
regulation by using LNG. Some 20 LNG-
be distinguished from the rest of the
friendly trade, and I invite the entire
powered vessels are thus set to enter the
fleet by a special livery displaying an
industry – competitors, partners and
group’s fleet by 2022.
“LNG POWERED” logo, attesting to the
customers – to join us.”
“LNG is a real technological
innovation that LNG propulsion represents
breakthrough which yields significant
on ships of this size.
RESERVOIR OF BIODIVERSITY
benefits compared to heavy fuel oil: up to
Notably, between 2005 and 2015,
Today, the Northern Sea Route, which runs
the length of the Siberian Coast, connects
Asia to Europe. It has been made navigable
due to the effects of global warming.
25% less CO 2
, 99% less sulphur emissions,
99% less fine particles and 85% less
nitrogen oxide emissions,” Xavier Eiglier,
CEO ANL, tells Daily Cargo News.
CMA CGM reduced its CO 2
emissions per
container transported by 50% and has
a target to reduce these emissions by a
further 30% by 2025.
Chase Dekker
60 October 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
( MNWMF ) www.mnwmf.com

OUT & ABOUT
Svitzer Australia MD Nicolaj
Noes cuts the ribbon at the
new Melbourne office
Jiae Bake and Megan
Bourke-O’Neil at
SCLAA women’s lunch
Busy end
to winter
for shipping
and logistics
Technology, natural disasters and gender
diversity were among the themes of
events over the past month
AN OPENING CEREMONY FOR SVITZER AUSTRALIA’S
new offices attracted a large gathering to the Port Melbourne
premises. The new offices are near the mouth of the Yarra River
and are built from shipping containers. The ceremony included
speeches and a Welcome to Country.
Meanwhile, the Supply Chain and Logistics Association of
Australia held its annual Women in Logistics lunch in Hawthorn
which was well attended.
Shipping Australia also held a breakfast in Melbourne, with
discussion about automated vehicles and blockchain.
On the other side of Bass Strait, a PIANC seminar was held
in Hobart generating lively debate about the impact of natural
disasters on ports.
Rounding out recent social events was a lunch in Melbourne
organised by the Cargo Club, with ex-football star and
‘lambassador’ Sam Kekovich the guest speaker and money being
raised for The Code 9 Foundation, an organisation which supports
emergency services workers.
Louise Hinton and Myriam
Petitpierre at SCLAA
women’s lunch
Sam Kekovich and Julie
Scollary at Cargo Club
62 October 2019
thedcn.com.au

Roger King and Neil Lawson
at PIANC in Hobart
Anna Price and
Peter Cream at
Svitzer office launch
Caitlin Hart-Hobson and
Rosie Di Francesco
at SCLAA
women’s lunch
David Shennan and Jim Cooper
at Svitzer office launch
David Sexton
Claire Brotherton and Jason
Pretorius at SAL breakfast
Rob Buck and Andrew
Herman at SAL breakfast
thedcn.com.au October 2019 63

OBITUARY
A 1992 photo of Captain Jack Adams and
Fremantle Ports CEO Kerry Sanderson (later
WA Governor) and the bell of the vessel Gorgon
Vale Captain Jack
Mariner, chief pilot and harbour master, Captain Jack
Adams made a tremendous contribution to the Western
Australian maritime sector, writes David Sexton
LEGENDARY FORMER FREMANTLE
harbour master and chief pilot Captain
Jack Adams has been remembered following
his recent death at the age of 103. Born in
County Durham in the United Kingdom,
one of four children, Jack grew up in a small
village and first went to sea as an apprentice
on the vessel Cheldale aged 16 in 1932.
As he wrote in his memoirs, “I did
not regret going to sea as the north of
England had borne the brunt of the Great
Depression and opportunities were limited.
This region had been dependant on heavy
industry and the Depression caused a
collapse in demand for ships. My father
believed that it would be sensible for me to
get my certificates while the Depression had
a hold and I would then be qualified when
the economy improved”.
He later joined Blue Funnel Line of
Liverpool and served in the Merchant Navy
during WWII, dodging German U-boats
and Japanese warships and narrowly
avoiding the fall of Singapore.
He was said to have been deeply affected
by his war experiences and the loss of
many friends.
In 1943, aged 27, he had the distressing
task of organising medical care for the
injured survivors of the hospital ship
Centaur, a vessel torpedoed off Queensland
by a Japanese submarine which resulted in
299 deaths.
After the war, Captain Adams stayed
working with the vessel Gorgon, a ship that
traded between Singapore and Fremantle.
He was made master of the Gorgon in 1949.
It was in Fremantle in the late 1940s he
met his future wife Lorna and together they
had four children.
He took on a pilot’s role at Fremantle
after deciding he wanted a shore-based job,
opting for Western Australia over another
position available in Singapore.
He enjoyed what was described as “a long
and satisfying career as a Fremantle pilot”
beginning in 1949 and saw him serve as
chief pilot (1963-1965), harbour master
(1968 -1972) and divisional manager
operations (1972 -1976).
An event in 1962 where Captain
Adams was tasked with salvaging part of
the wrecked Italian tanker Bridgewater
attracted special attention.
According to Fremantle Port archives:
“Pilot Captain Jack Adams bought the
stern section of the disabled oil tanker
Bridgewater into Gage Roads in February
1962. This was not an easy task, he had to
exercise great care avoiding several shallow
patches, considering the deep draught of
the ship which was drawing close to 43
feet. At times there must have been only a
few feet between the ship and seabed. On
arrival at Gage Roads oil and water was
transferred to a waiting barge and then
the stern section of Bridgewater was safely
towed into the Inner Harbour.”
As Captain Adams later wrote of the
incident: “The length of this ship was 500
feet, across the beam 70 feet and tonnage
approximately 14000 tons. The job was
unusual as we had to head in a northwesterly
direction, well out to sea from the
pilot boarding grounds. It was very choppy
weather. Standing on the deck of the pilot
boat I sighted through my binoculars
what I thought looked like a ship. As we
approached we could see that there had
been extensive damage. Only part of the
ship remained. I had difficulty boarding
the large hulk via the pilot’s ladder as the
ladder did not have the usual stability
resting against the side of the ship. Instead
the ladder swung freely. I climbed by
placing the ladder side on, as the edge had
more stability.”
In a eulogy delivered at his funeral,
daughter Margaret Doust recalled her
father’s time as a pilot.
“It was thrilling as children to go out on
the pilot boat to collect Dad in Gage Roads.
The ship would slow down and the pilot
boat would move closer, dark green water
rushing between the two vessels,” Mrs
Doust said.
“I never tired of watching Dad nimbly
climb down the long rope ladder and leap
onto the swaying deck of the pilot boat,
standing steadily on his sea legs.”
Captain Adams retired in 1977 but
he and Lorna used their time to make
many overseas trips, often on cargo
ships. They also got to spend time with
their grandchildren and later great
grandchildren.
He published his autobiography A Pinch
of Salt in 1996. Speaking with Daily Cargo
News, daughter Judy Boyne said her father
never lost his love of the sea.
“{Jack and Lorna Adams] bought a house
a hundred metres from the sea at Cottesloe
in Perth,” Mrs Boyne recalled.
“He could just sit on the veranda and
look at the ocean.”
Fremantle Ports
64 October 2019
thedcn.com.au

INDUSTRY OPINION
Traxens’ role in the
new digital strategy
Peter Creeden runs the magnifying glass over developments
in the world of digitalised shipping
RECENT, SEPARATE ANNOUNCE-
reefer units would need IoT devices. Given
ments about investments in Traxens
the basic math, the number of upgraded
by major shipping lines and all joining
reefers seems short. All reefer fleets should
Tradelens not only mark a huge step
have these smart devices. With critical and
forward for the industry but also send
high value commodities such as fish or
a clear signal to the wider supply chain
pharmaceuticals, the benefits of “remote”
market that the shipping lines have a
or proactive monitoring are not only
strategy going forward. The steps taken
prudent for cargo loss prevention but also a
have shown a willingness by these
cost savings initiative.
companies to move towards a digital future
but is it enough?
COST SAVINGS
In regard to cost savings, smart reefers
MAERSK AND TRAXENS
eliminate the need for long, manual pre-
The decision by Maersk to invest in
trip inspections. Some shipping lines are
Traxens, a smart container company,
pushing the limits and avoiding pre-trips
brings together the top three carriers
all together. These short-term strategies
(MSK, MSC, CMA CGM) as equal
have only increased the risk of failures and
shareholders in the Marseille-based
cargo claims. Other lines are starting to use
company. Hapag Lloyd will upgrade its
AI and machine learning to predict when
Peter Creeden, director, MPC International
entire reefer fleet with Globe Tracker
they can avoid pre-trip inspections.
devices. Therefore, the shipping industry
Using data analytics to suggest when
The improvements in data quality alone
has chosen a leader for their Internet of
reefers should go through the pre-trip
make the move to smart containers a good
Things devices but how quickly will they
inspections is a great way to truly start
investment. Going beyond the gate (of an
upgrade their container fleets?
moving into the digitalisation of shipping.
empty depot, intermodal terminal or ocean
The application of AI and machine
terminal) and tracking where the container
MAJOR PLAYERS
learning have their limitations now but,
is actually packed or unpacked will provide
There are three major players in the IoT
over the next few years, will only improve.
opportunities for shipping lines to use AI
space that have made good inroads into the
It is important to note that reefer
and machine learning to improve their
container shipping market; GlobeTracker,
containers are like any physical machine,
container fleet management and their
Orbcomm, and Traxens. Of the three,
proper maintenance is the only way
understanding of the inland movements.
only Traxens seems focused on getting
to ensure proper performance. In a
the shipping lines into the IoT world. This
single export cycle, a typical container
FINAL THOUGHTS
focus has paid off with investments and
is handled about 15-20 times until the
Overall, shipping lines should rollout IoT
purchases by the top lines. CMA CGM,
cargo is unpacked at destination. Until the
devices on their dry container fleets for the
Hapag Lloyd, Maersk, and MSC have made
predictive software can constantly plan the
cost saving benefits and market penetration
commitments to rollout 50-100,000 devices
best maintenance routines, the cautious
opportunities. Having Traxens is the corner-
over the next year. It is unclear how many
choice would be to ensure the boxes are
stone of owning and controlling the data.
containers are actually using IoT devices.
pre-tripped for the customer’s benefit.
Interestingly, having Tradelens is how
Overall, these commitments are too
the shipping lines will sell the data. I will
small to make a significant change in how
SMART DEVICES
explore the Tradelens platform and its role in
the shipping lines manage their container
The real benefits will be when smart devices
the strategy of shipping lines in the future.
fleets in the next few years. Each of the top
are rolled out on the dry container fleets.
The establishment of a strong digital
lines has fleets of more than 2m containers.
When this happens, shipping lines will
strategy by the shipping lines is a great
Image supplied
Reefers make up generally only 20% or 25%
of the overall fleets.
If 100% of the reefer fleets for the top
three carriers were upgraded, then 1.2m
be able to own and create their own data.
This will eliminate the dependence on the
terminals, depots or other suppliers in the
supply chain.
step forward for the industry. Hopefully,
it will keep up with the quickening pace
and pressures that are coming from
outside the industry.
thedcn.com.au October 2019 65

The grill
a lot of time at my grandparent’s holiday
house at Victor Harbour SA.
Where do you live now? What makes it
a special place to live?
I’m living back in Belair in South Australia,
but not at my parent’s house although
they’re still there in that same house.
Dr Michael Sierp talks with DCN editor David Sexton
about his job as a biofouling inspector, his love of
mountain biking and the contribution of Bob Hawke
What is your job and what does it entail?
I’m currently managing director of
Aquatic Biosecurity Pty Ltd. I’m a scientist,
biofouling inspector, marine surveyor, vessel
master and a commercial diver. My job is
doing anything in the aquatic arena that I
can get out of the office to do, although I
seem to end up writing lots of reports in the
office describing what I was doing.
How did you get into your line of work?
I was surfing, fishing, sailing dinghies,
snorkelling, reef combing and going out in
boats so I started at Flinders University as a
young man thinking about how to get paid
to go to the beach.
After university I took a dream job as a
government research scientist working in
fisheries, aquaculture and water quality in
the South Australian government.
Later I took another government job
as manager of Marine Biosecurity for
South Australia. I was voted in as the
national chair of the Marine Pest Sectoral
Committee which helped me to understand
the joint biosecurity and maritime issues
facing industry, the environment and the
community.
Then I left government and started my
business. Twenty-five years, five degrees and
a bunch of certifications later I find myself
here running my business and representing
stakeholders on a range of volunteer
fisheries and maritime NGO boards.
What makes your work rewarding?
I never quite know what I’m going to be
doing or where in the world I will be each
month which is exciting and rewarding.
Project work is like solving a puzzle every
time with an innovative solution.
I also do a lot of volunteer work on
boards which I find very rewarding. It
puts you in contact with good people,
interesting projects and it is good to give
back to the community.
What did you want to be when you
were growing up?
I wanted to be an industrial designer or
engineer but I didn’t get the marks I needed
at school. Then I had an epiphany moment
at university and I changed my course to
Marine Biology with Chemistry. It all made
sense to me and then I started getting very
good grades. Almost everyone told me I was
wasting my time but I went for it anyway
and it has proven to be a great decision.
Where did you grow up?
I grew up in the leafy Adelaide Foothills of
Belair in South Australia, but we also spent
What do you enjoy doing outside of work?
I have been mountain biking since the
sport started in the 1980s and still get
out there for the occasional race. I have a
700cc adventure motorbike and a research
dive boat. I still like going surfing, diving,
snorkelling and sailing outside work. I
coach tennis once a week and go rockclimbing
sometimes.
Do you play a musical instrument?
I have a guitar signed by Mike from the
Beach Boys in my campervan so I’m
looking forward to getting better at it as
I’m not very good.
What music do you enjoy?
Spiderbait, Disclosure, The Presets, Calvin
Harris, Beastie Boys, Nirvana, The Happy
Mondays, Billy Idol, Brian Ferry, Bowie etc.
Have you got a favourite restaurant?
Where is it and what makes it special?
Hentley Farm in Seppeltsfield Barossa
Valley because it is more of an adventure
than a menu and their wines are nice too.
Is there one Australian (past or
present) who you particularly admire?
Former Australian Prime Minister, the
late Bob Hawke. He genuinely cared about
all the things that made Australia a great
place to live. His position on stopping the
Franklin Dam development and other
natural heritage destruction projects was
admirable. A great role model.
To where would you like to retire?
I would like to retire travelling the world
wherever it is safe to go, with just short
stays back in Adelaide to catch up with
friends. There’s so much to see out there
and while I know Australia very well I know
there’s lots I want to see and do.
Image supplied
66 October 2019
thedcn.com.au

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