DCN October Edition 2019

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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
Page 1 and 2: First published in 1891 October 201
Page 4 and 5: XXXXXX Contents 32 24 FEATURES 24 3
Page 6 and 7: First published in 1891 October 201
Page 8: WORD FROM THE MINISTER Victoria del
Page 11 and 12: Report released into Brisbane dedic
Page 13 and 14: Hirohito Takada Safety processes da
Page 15 and 16: You wouldn’t accept overbooking i
Page 17: Helping economies grow and customer
Page 21 and 22: WOMEN IN MARITIME Svitzer Australia
Page 24 and 25: LINER TRADES TO THE AMERICAS The li
Page 26 and 27: LINER TRADES TO THE AMERICAS Contai
Page 28 and 29: LINER TRADES TO THE AMERICAS 27 % A
Page 30 and 31: LINER TRADES TO THE AMERICAS 6.1 %
Page 32 and 33: PORT DESIGN, CONSTRUCTION & DREDGIN
Page 34 and 35: PORT DESIGN, CONSTRUCTION & DREDGIN
Page 36: PORT DESIGN, CONSTRUCTION & DREDGIN
Page 39 and 40: Weathering seasons Major ports in S
Page 41 and 42: BRINGING THE PORT TO THE PRODUCT T-
Page 43 and 44: equipment has been installed, inclu
Page 45 and 46: ARDENT OCEANIA A leading marine ser
Page 47 and 48: local barge sourced by the Southern
Page 49 and 50: speed and channel bathymetry. This
Page 51 and 52: TMC Marine Stages of autonomous shi
Page 53 and 54: TMC’s Captain Roger King When dis
Page 55 and 56: Ian Ackerman been unsuccessful as t
Page 57 and 58: Image supplied Alexis Cahalan, prin
Page 59 and 60: WINTER CROP PRODUCTION AND AREA, AU
Page 61 and 62: THE 24TH ANNUAL AUSTRALIAN Shipping
Page 63 and 64: Roger King and Neil Lawson at PIANC
Page 65 and 66: INDUSTRY OPINION Traxens’ role in
Page 67 and 68: SUBSCRIBE TODAY! Stay up to date wi

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