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First published in 1891<br />

<strong>December</strong> <strong>2019</strong><br />

thedcn.com.au<br />

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

Awards<br />

<strong>Edition</strong><br />

34 Developments in<br />

maritime in NT<br />

40 The air cargo gamechanger<br />

in Sydney<br />

46 Workplace health<br />

and safety feature


PORT BOTANY<br />

KEEPING AUSTRALIA’S<br />

ECONOMY MOVING<br />

for<br />

40 years


Port Botany is Australia’s premier<br />

port and vital to the economic<br />

wellbeing of the nation.<br />

With short and deep shipping channels, on-dock rail at<br />

all three container terminals and the ability to handle<br />

>12,000 TEU ships today, Port Botany proudly connects<br />

the people and businesses of NSW with the world.<br />

nswports.com.au


XXXXXX<br />

Contents<br />

34<br />

16<br />

FEATURES<br />

16<br />

34<br />

40<br />

46<br />

The shipping industry’s night of nights<br />

All the winners from the <strong>DCN</strong> Shipping & Maritime Industry Awards<br />

Northern Territory<br />

Wrap-up of maritime and trade developments in The Top End<br />

Air cargo<br />

Why Western Sydney Airport will be a game-changer for air freight<br />

Workplace health & safety<br />

How a maritime operator in PNG is protecting women in the workplace<br />

COLUMNS<br />

46<br />

40<br />

8 A word from the minister<br />

Deputy PM McCormack discusses<br />

the benefits of the Inland Rail<br />

28 Women in maritime<br />

Exclusive interview with India’s<br />

only female marine pilot<br />

30 40 years of Port Botany<br />

Special anniversary feature<br />

looking back at the history of<br />

NSW’s major trade gateway<br />

32 Industry opinion<br />

The FTA looks at impacts on<br />

exporters of stevedoring charges<br />

54 Trade law<br />

Perspectives from the National<br />

Conference of the CBFCA<br />

56 Port sustainability<br />

<strong>2019</strong> World Greenport Congress<br />

58 Industry opinion<br />

Shipping line consolidation study<br />

60 Industry analytics<br />

Analysis of ACCC’s monitoring<br />

report for container stevedoring<br />

62 Out and about<br />

Industry events across Australia<br />

64 Mission to seafarers<br />

Critical support amidst tragedy<br />

66 The grill<br />

From coastal Vietnam to logistics<br />

at RMIT: Professor Vinh Thai<br />

4 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


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maritime in NT<br />

First published in 1891<br />

<strong>December</strong> <strong>2019</strong><br />

thedcn.com.au<br />

EDITORIAL<br />

ISSUE NUMBER 1253 <strong>December</strong> <strong>2019</strong><br />

At the <strong>2019</strong> <strong>DCN</strong> Shipping & Maritime Industry Awards are<br />

(from left) Jeanine Drummond, Alison Cusack, David Field and MC Nicole Livingstone<br />

From the editor<br />

Welcome to the final edition of Daily Cargo News for <strong>2019</strong>. It is<br />

something of a cliché, but the year has gone fast. From the point<br />

of view of a reporter, it has been a busy year with many interesting<br />

topics to cover and weighty issues to sink our collective teeth into.<br />

Some examples have been terminal access charges/infrastructure<br />

fees, stink bugs, the federal election and ongoing debates about the<br />

future of coastal shipping.<br />

<strong>DCN</strong> recently held its Australian Shipping and Maritime Industry<br />

Awards in Melbourne, a tremendous night that was not only a lot<br />

of fun, but also helped celebrate the many high achievers within<br />

shipping and logistics. You can find profiles of all the winners<br />

and a great range of photos in this edition. Thanks to those who<br />

attended, we hope you enjoyed the evening and look forward to<br />

seeing you at the 2020 event.<br />

The year ahead promises to be a fascinating one as industry and<br />

regulators come to terms with new rules governing low-sulphur<br />

content fuel driven by the IMO. As environmental issues become<br />

ever-more prominent, sustainability within shipping and logistics is<br />

sure to be a big issue as well.<br />

<strong>DCN</strong> would like to thank all of our readers, subscribers and<br />

sponsors for their support during the year. We wish you all a Merry<br />

Christmas and a Happy New Year and look forward to bringing you<br />

all the important news and analysis in 2020.<br />

David Sexton<br />

Editor, Daily Cargo News<br />

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

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

thedcn.com.au<br />

Publisher<br />

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

Editor<br />

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

Deputy Editor<br />

Paula Wallace paula.wallace@thedcn.com.au<br />

Creative Director Lee McLachlan<br />

Production Manager<br />

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

Electronic Services<br />

Linda Saleh<br />

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Tel: 0431 956 645<br />

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James Hayman james.hayman@thedcn.com.au<br />

Tel: 02 9126 9713<br />

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

34 Developments in<br />

Awards<br />

<strong>Edition</strong><br />

40 The air cargo gamechanger<br />

in Sydney<br />

46 Workplace health<br />

and safety feature<br />

<strong>DCN</strong>1219_CoverFinal.indd 1 21-Nov-19 1:23:39 AM<br />

COVER IMAGES<br />

James Morgan<br />

Published by<br />

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Tel: +61 2 9126 9709<br />

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

www.thedcn.com.au<br />

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

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6 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


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WORD FROM THE MINISTER<br />

Inland Rail:<br />

a national celebration<br />

With the first section of greenfield track already open, Deputy Prime Minister Michael<br />

McCormack recaps what was an important year for Inland Rail<br />

CHRISTMAS IS ALMOST UPON US.<br />

It is a time to pause, celebrate and reflect<br />

on the year’s achievements. But this<br />

Christmas, we can look a lot further back<br />

as we approach the 100th anniversary<br />

of the founding of The National Party<br />

of Australia on 22 January 2020. With<br />

uninterrupted representation in the<br />

Australian Parliament, our party has<br />

achieved much in that time. We’ve fought<br />

passionately for the things we believe in.<br />

We’re passionate about promoting vital<br />

infrastructure across regional Australia and<br />

connecting the regions to the rest of the<br />

country. We’ve always done that. In 1970,<br />

we delivered standard gauge rail between<br />

Sydney and Perth and February is the 50th<br />

anniversary of that achievement. We’re<br />

very proud of our party’s role in delivering<br />

standard gauge from east to west. Today, we<br />

are just as pleased with of our role in building<br />

Inland Rail from north to south and <strong>2019</strong><br />

was a tremendous year for Inland Rail.<br />

A SIGNIFICANT MILESTONE<br />

In August, a significant milestone was<br />

reached with the opening of the first<br />

section of greenfield track – the North<br />

West Connection – with the first trains<br />

already running on this track. The North<br />

West Connection is a 5.3km greenfield rail<br />

track joining the existing Broken Hill Line<br />

to the existing rail track south of Henry<br />

Parkes Way, near Parkes in the Central<br />

West of New South Wales, significantly<br />

increasing the efficiency of trains heading<br />

across Australia.<br />

Inland Rail will help cater to the growing<br />

demand for domestic inter-capital freight<br />

and will provide regional businesses and<br />

farmers with new opportunities to grow<br />

their exports by helping them transport<br />

their produce to market when and where<br />

it is required. By mid-next year, the North<br />

West Connection is scheduled to link up<br />

with the rest of the Parkes to Narromine<br />

section of Inland Rail, which we started<br />

building a year ago.<br />

BENEFITS FOR FREIGHT<br />

The North West Connection is vital for our<br />

freight industry and we will see markedly<br />

improved travel times and capacity for<br />

multiple train movements throughout<br />

the intersecting network, which means,<br />

when Inland Rail is fully operational,<br />

more productive supply chains operating<br />

across Australia. Initial modelling from the<br />

CSIRO indicates an average transport cost<br />

saving of $76 per tonne can be achieved by<br />

shifting specific agricultural supply chains<br />

from road to rail and this CSIRO study is<br />

now being extended right along the route.<br />

BENEFITS FOR THE REGIONS<br />

In October, the Parkes Logistics Terminal<br />

opened. Terminals play a vital role in<br />

the consolidation, storage and transfer<br />

of freight between rail and road — our<br />

terminals are critical to our supply chain<br />

network, ensuring that truck, train, ship<br />

and plane are connected and keeping our<br />

nation running. Parkes is at the centre of<br />

this future connectivity, as we’ve already<br />

seen with the North West Connection<br />

This once-in-a-generation project will transform<br />

the way freight is moved around our great country.<br />

opening up freight supply chains as far<br />

reaching as Perth.<br />

Make no mistake, the regions form<br />

Australia’s economic backbone. They grow<br />

the crops, farm the stock, harness the<br />

energy and help keep some of our most<br />

precious cultural heritage alive. Without the<br />

regions, Australians living in the cities could<br />

never have the lifestyle they enjoy today.<br />

Michael McCormack, Deputy Prime Minister<br />

and minister for infrastructure<br />

So it’s good news that our strong economic<br />

management allows us to invest in projects<br />

with a regional focus, such as Inland Rail.<br />

INFRASTRUCTURE PIPELINE<br />

Inland Rail is a centrepiece of the Liberal<br />

and Nationals government’s $100bn<br />

infrastructure pipeline. This once-ina-generation<br />

project will transform the<br />

way freight is moved around our great<br />

country. It will support 16,000 jobs during<br />

construction and provide a $16bn boost to<br />

our national economy over the long-term.<br />

As individual sections are completed<br />

and added to the national network,<br />

regional producers will have earlier access<br />

to the national capability of Inland Rail.<br />

Today, The Nationals’ 100 year-old<br />

commitment to the regions is stronger<br />

than ever. We have championed<br />

connecting the regions to the rest of the<br />

country from the start. And that’s exactly<br />

what we’re doing.<br />

I would like to wish everyone across this<br />

great nation a happy and festive Christmas<br />

and safe and prosperous New Year.<br />

Image supplied<br />

8 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


News in brief<br />

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

Baltic Exchange seeks to raise Asia-Pacific profile<br />

Baltic Exchange chief executive Mark<br />

Jackson and Baltic Exchange Asia head<br />

Lu Su Ling visited Melbourne for a<br />

lunch organised with Maritime Industry<br />

Australia Limited.<br />

Mr Jackson has a strong connection with<br />

Australia. He grew up in Sydney and has<br />

family in Melbourne.<br />

The Baltic Exchange was purchased by<br />

the Singapore Exchange three years ago,<br />

strengthening its connection with the Asia-<br />

Pacific region, something upon which Mr<br />

Jackson is keen to build.<br />

“The Baltic has been positioning itself as,<br />

and I think achieving, a global membership<br />

organisation. We have a small office in<br />

Singapore and they really have relied on…<br />

people coming to Singapore to engage with<br />

us,” Mr Jackson said, when asked about the<br />

purpose of the visit.<br />

“Mining companies<br />

move their offices [to<br />

Singapore] and a lot<br />

of people move their<br />

offices there because<br />

Singapore attracts<br />

business,” he said.<br />

“But the fact is, there<br />

is quite an active shipping<br />

Mr Jackson also spoke of the impact of<br />

the acquisition by the Singapore Exchange.<br />

“The Baltic is now owned by a<br />

regulated entity that is also<br />

a regulator of its own<br />

marketplace,” he said.<br />

“So we put in place<br />

much stricter audit<br />

controls which also led<br />

into us now having an<br />

application to our own<br />

regulator (the Financial<br />

community here in the bulk<br />

side of things in Australia and<br />

we want to see if we can capture<br />

Mark Jackson and<br />

Lu Su Ling<br />

Conduct Authority in the<br />

UK) and I think that having<br />

SGX and their knowledge of<br />

some of that interest and provide services<br />

from the Baltic Exchange.”<br />

marketplaces process procedure has helped<br />

us ‘up our game’.”<br />

FREIGHT VOLUMES BOOST<br />

TASPORTS’ BOTTOM LINE<br />

The highest freight volumes since 2008 propelled<br />

TasPorts to a record net profit for the 2018/19<br />

financial year.<br />

Imoloria The net profit sumenti of $12m was up dist from $5.8m omnis in<br />

2017/18.<br />

Molorem<br />

According<br />

poreruptae<br />

to the<br />

volorpo<br />

TasPorts<br />

rerciende<br />

annual<br />

incipsu<br />

report,<br />

vitionsero eos am sunt, simi, sit aut vellita que esti omnitate pel ium accus aligni.<br />

At the eum company ex et que moved non et more poruntiistis than 15.5m aliatectem tonnes fuga. during Ratibusam restrup ictate labores doluptatiur, velibus di ipsapis.<br />

the Ucius reporting nobiti que period, dellaut a 3% inctur, rise compared ex eatiamet with ommossitiam the et ut eatur aut la nosam quia audae modiOtatecta sin ra nimus eos<br />

mi, previous odis et, financial ut et praepudi year. It consent was the fuga. fourth Ut year duciae in a prorias ut ea vellaut harum el ilibus qui temque cullessiti sim volor.<br />

row the company reported a profit.<br />

The result comprised a trading profit of $14.2m<br />

for TasPorts ($9m in 2017/18), a net loss of $2.1m for<br />

Bass Island Line ($3m loss the previous year) and a<br />

net loss of $103,000 for Southern Export Terminals<br />

(a $235,000 loss the previous year).<br />

Chairman Stephen Bradford said the board<br />

was optimistic profitable performance could be<br />

continued into the future.<br />

“The results allow TasPorts to continue our<br />

significant infrastructure remediation and<br />

renewal program while at the same time providing<br />

appropriate returns to the Tasmanian government,”<br />

Mr Bradford said.<br />

Hobart waterfront<br />

Image supplied; Joel Everard<br />

10 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


INFLATION UP<br />

DESPITE “GLOBAL<br />

HEADWINDS”<br />

Image supplied<br />

VTA elects new president<br />

and vice president<br />

Changes were announced for the Victorian<br />

Transport Association following its annual<br />

meeting, with Mike Lean taking over as<br />

president from Cameron Dunn who has<br />

been in the role since 2016.<br />

Mr Lean is chief executive of national<br />

road transport operator Wettenhalls and is<br />

experienced in the transport sector. He has<br />

experience in both the military and senior<br />

levels of business. As well as previously<br />

holding the role as VTA vice-president,<br />

he was also chair of the important VTA<br />

Finance Committee.<br />

Prior to his appointment at<br />

Wettenhalls, Mr Lean was CEO of the<br />

Port of Hastings Development Authority,<br />

general manager of the shipyard in<br />

Williamstown and operations manager of<br />

a workshop and warehousing distribution<br />

Surveys seek to shed light<br />

on maritime gender diversity<br />

Mike Lean (left) and Cameron Dunn<br />

facility in Wodonga. As an army officer,<br />

he commanded an Infantry battalion in<br />

East Timor.<br />

The VTA Executive Council also elected<br />

Mick Rocke as vice president, who has<br />

experience within the industry and was the<br />

recent recipient of the VTA WFD Chalmers<br />

Award. Dennis Ryan was also re-elected<br />

vice president for another term.<br />

VTA chief executive Peter Anderson<br />

congratulated the new office holders.<br />

“On behalf of the Secretariat of the VTA,<br />

we extend our congratulations and best<br />

wishes to Mike, Mick and Dennis on their<br />

elections and wish them every success,” Mr<br />

Anderson said.<br />

“I would also like to acknowledge and<br />

thank Cameron Dunn for {his} energy,<br />

professionalism and enthusiasm.”.<br />

Two surveys aimed at shedding light on gender diversity in the Australian<br />

maritime sector have been prepared by industry group Maritime Industry<br />

Australia Limited.<br />

One survey is aimed at employees and the other targets business owners and<br />

human resource managers.<br />

MIAL chief executive Teresa Lloyd said the surveys were in keeping with the <strong>2019</strong><br />

World Maritime Day theme of Empowering Women in the Maritime Community.<br />

With this data, MIAL is to analyse how organisations promote diversity and will<br />

look to develop industry initiatives to increase diversity and inclusion.<br />

Whereas the MIAL Seafaring Skills Census 2018 focused on seagoing roles, this<br />

survey intends to explore other roles within the industry.<br />

Although diversity and inclusion encompass a range of groups, these surveys<br />

focus on women.<br />

“The maritime industry is taking great strides toward gender parity in terms of<br />

participation, seniority and remuneration,” Ms Lloyd said.”<br />

A Consumer Price Index indicating<br />

national inflation rising 1.7% in the<br />

year to September showed Australia<br />

is weathering global uncertainty,<br />

Australian Chamber of Commerce<br />

and Industry chief economist Ross<br />

Lambie said.<br />

Dr Lambie also urged the<br />

government to retain a surplus and<br />

resist calls to get spending during a<br />

time of quieter economic growth.<br />

“Although inflation remains<br />

outside the Reserve Bank’s target<br />

range of 2% to 3%, it is promising to<br />

see the September quarter Consumer<br />

Price Index improve from a low of<br />

1.3% in the March quarter and 1.6% in<br />

the June quarter,” he said.<br />

“This is despite global uncertainty<br />

- driven by the US-China trade and<br />

technology dispute, Brexit, protests<br />

in Hong Kong and tensions in the<br />

Middle East - presenting a significant<br />

risk to the Australian economy.”<br />

He said the low inflationary<br />

environment was not unique to<br />

Australia, with low inflation the norm<br />

in many developed countries.<br />

“We urge the government to keep<br />

its focus on achieving the budget<br />

surplus and continue to identify<br />

opportunities for productivityenhancing<br />

economic reform,” Dr<br />

Lambie said.<br />

“It is important we look for reforms<br />

which increase the competitiveness<br />

of SMEs and encourage businesses<br />

to take risks, invest, grow and create<br />

jobs,” he said.”<br />

Dr Lambie said the relatively<br />

low level of inflation suggested the<br />

Australian economy was still to<br />

experience the full impact of the<br />

personal tax cuts delivered in July and<br />

the Reserve Bank’s recent decision to<br />

lower the cash rate to 0.75%.<br />

“We would hope to see these<br />

measures reflected in improved<br />

economic conditions in the next few<br />

months,” he said.<br />

“The downturn in the housing<br />

market over the past year has<br />

weighed heavily on consumer<br />

confidence and held back household<br />

spending. However, there are signs<br />

the housing sector has turned the<br />

corner in recent months, with a<br />

modest improvement in Sydney and<br />

Melbourne house prices.”<br />

thedcn.com.au <strong>December</strong> <strong>2019</strong> 11


NEWS IN BRIEF<br />

Gangway injury prompts<br />

safety warning<br />

Berge Daisetsu<br />

Injuries to two crew members on a bulker prompted a<br />

warning about the importance of adhering to “best practice”<br />

while working aloft.<br />

The incident occurred in early January last year on the<br />

vessel Berge Daisetsu while it was at Portland, Victoria.<br />

A team of six crewmembers were cleaning and painting<br />

the cargo hold.<br />

The crew rigged a portable gangway which that<br />

suspended from the cargo crane hook via slings.<br />

The ship’s crewmembers completed a risk assessment,<br />

however, the equipment and machinery use was contrary to<br />

company policy and procedures.<br />

As two crewmembers worked aloft on the platform, the<br />

crane’s block caught on the coaming and came free, sending<br />

an unexpected heavy shock into the platform.<br />

The two crewmembers were knocked over and landed<br />

heavily on their knees and lower body, causing them<br />

serious injury.<br />

The ATSB investigation found the equipment and<br />

machinery were unsuitable for the task, making hazard<br />

identification difficult, and exposed the workers to<br />

increased risk.<br />

“This accident illustrates the consequence of deviating<br />

from accepted safety management procedures and industry<br />

best practice,” said ATSB director transport safety Stuart<br />

Macleod.<br />

“The use of machinery and equipment contrary to its<br />

intended purpose, makes hazard identification difficult<br />

and exposes those directly involved to significantly<br />

increased risk.”<br />

The investigation also found the fall arrest equipment<br />

used was incorrectly attached to the workers on the<br />

suspended platform.<br />

According to the ATSB, had either of them fallen from the<br />

platform, the equipment would not have worked correctly,<br />

“resulting in serious or fatal injuries”.<br />

Berge Bulk Maritime has completed the supply of<br />

approved working aloft equipment to its geared bulk<br />

carriers and is modifying vessel cranes for personnel lifting.<br />

Port of Townsville<br />

master plan<br />

announced<br />

Sustainable development and protection of the Great<br />

Barrier Reef are twin aims of the Port of Townsville<br />

Master Plan.<br />

Port of Townsville is listed as one of four priority ports<br />

recognised as fundamental to the economic future growth<br />

of the region.<br />

The final master plan for the port has been prepared<br />

by the Department of Transport and Main Roads in<br />

collaboration with Townsville Port, Townsville City<br />

Council, state agencies and other stakeholders, including<br />

community and environmental groups.<br />

Port of Townsville chief executive Ranee Crosby said<br />

finalisation of the master plan was the result of long-term<br />

planning, consultation and environmental stewardship.<br />

“We are acutely aware of our location, in the Great<br />

Barrier Reef World Heritage Area, and undertake a<br />

comprehensive range of environmental programs to<br />

ensure we continue to protect the environmental values of<br />

Cleveland Bay and surrounding areas,” Ms Crosby said.<br />

“As the trade gateway for the North West Minerals<br />

Province, and the largest general cargo and container<br />

port in northern Australia, the master plan articulates our<br />

commitment to responsible stewardship of port lands and<br />

waters.”<br />

Master planning is said to align with other key portrelated<br />

projects associated with the ongoing sustainable<br />

development of the port including the Port Expansion<br />

Project – Channel Upgrade Project, Townsville Eastern<br />

Access Rail Corridor and the Townsville City Deal.<br />

The master plan is to be implemented by a port overlay<br />

- a regulatory document which implements the master<br />

plan that is given effect through existing development<br />

assessment and strategic planning processes undertaken<br />

by the Port, Townsville City Council and the Queensland<br />

Government.<br />

The draft port overlay is open for public consultation<br />

until 16 <strong>December</strong>.<br />

Aerial view of the Port of Townsville<br />

Berge Daisetsu ; Port of Townsville<br />

12 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


Rail a focus of Port of Melbourne<br />

30-year strategy<br />

Getting more freight on to rail is a key<br />

theme of the Port of Melbourne’s 30-year<br />

Port Development Strategy 2050 that has<br />

been released for consultation.<br />

Port of Melbourne chief executive<br />

Brendan Bourke said the 2050 PDS was<br />

a roadmap for future development and<br />

outlined 10 key projects to improve<br />

capacity, honing in on rail.<br />

“The port’s plan for rail terminals<br />

supports the government’s intention to<br />

move more freight on rail. We are working<br />

with the government to progress this<br />

project,” Mr Bourke said.<br />

“Moving containers by rail will help get<br />

trucks off local roads, particularly in the<br />

inner-west of Melbourne.”<br />

Mr Bourke said the community<br />

increasingly relied on the port to deliver<br />

goods needed to support their daily lives.<br />

“We are committed to investing in the<br />

port to ensure it remains the premier port<br />

in Australia, a cornerstone of the Victorian<br />

economy, and to move goods in and out of<br />

the port to their destination more quickly.”<br />

The 2050 PDS provides a framework for<br />

the next 30 years, yet proponents say it is<br />

also flexible to respond to industry trends<br />

and innovation.<br />

“We will continue to refine the 2050<br />

PDS as new and additional information<br />

becomes available and will refresh the<br />

document every five years,” Mr Bourke said.<br />

There are a number of projects that PoM<br />

forecasts will need to be delivered by 2035<br />

and 2050 to meet demand and supplement<br />

efficiency and productivity improvement<br />

projects. Along with developing several rail<br />

projects these include upgrading Swanson<br />

Dock East and West berths; expanding<br />

Webb Dock East container terminal and<br />

upgrading berths; and developing a new<br />

Webb Dock Norh container terminal, to<br />

name a few.<br />

The 2050 PDS has been developed<br />

together with industry, key stakeholders<br />

and the community, with 190 stakeholders<br />

participating in shaping its development.<br />

It has been welcomed by the Victorian<br />

Transport Association. Chief executive<br />

Peter Anderson said the document was<br />

“significant”.<br />

“The VTA welcomes the Port of<br />

Melbourne’s PDS 2050,” he said.<br />

“The issue for our industry is not about<br />

getting trucks off our roads but how we<br />

better manage the movement of freight<br />

through our communities.”<br />

Mr Anderson said there was no time<br />

for delay.<br />

“The Port of Melbourne needs to<br />

become more productive and efficient<br />

and we need to accelerate these plans as<br />

quickly as possible.<br />

“It is about all stakeholders working<br />

together,” he said.<br />

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thedcn.com.au <strong>December</strong> <strong>2019</strong> 13


NEWS IN BRIEF<br />

LODESTAR AND SWIRE TO PROVIDE<br />

NZ–ASIA BREAKBULK SERVICE<br />

Lodestar and Swire Shipping announced a joint breakbulk<br />

shipping service between New Zealand and North Asia.<br />

Lodestar is the logistics and shipping division of Oji Fibre<br />

Solutions, while Swire Shipping is the liner shipping division<br />

of The China Navigation Company.<br />

The new service is to provide a monthly frequency<br />

carrying pulp, timber and forest product-related cargo.<br />

The two New Zealand ports are Napier and Tauranga, while<br />

the main Asian ports are Incheon (Korea), Qingdao (China),<br />

Lianyungang (China), Onsan (Korea), Tomakomai (Japan) and<br />

Kaohsiung (Taiwan).<br />

A total of three Saiki class 38,000 dwt bulkers are<br />

deployed in the service, MV Glorious Saiki, MV Furness<br />

Portland, and MV Furness Southern Cross.<br />

“Lodestar seeks to provide cost effective shipping<br />

solutions that enable our customers to gain a high degree<br />

of confidence that their products will be delivered on<br />

time and in prime condition,” said Murray Horne, general<br />

manager, Lodestar.<br />

“We are excited to journey on this partnership with Swire,<br />

and confident we can grow and develop our businesses<br />

together in the future.<br />

“Lodestar remains in a strong position to continue to<br />

deliver high-quality shipping and logistics solutions for Oji<br />

Fibre Solutions in New Zealand, as well as for our growing<br />

third-party customer base.”<br />

Swire Shipping general manager projects Chris Blake said<br />

the partnership with Lodestar reinforced their focus on<br />

delivering quality and sustainable shipping services.<br />

“The service will be the foundation for future innovative<br />

solutions, to service New Zealand import and export<br />

cargoes,” Mr Blake said.<br />

“It also underpins our commitment to growing the<br />

shipping industry in New Zealand through strategic tie-ups<br />

with like-minded partners, offering bigger ships, as well as<br />

providing a comprehensive range of shipping solutions that<br />

our customers want and need.”<br />

MV Furness Portland<br />

TasPorts executive general manager Matthew Johnston and<br />

West Tamar Council Mayor Christina Holmdahl presented<br />

Captain Håkan Gustafsson with a plaque and gift<br />

Plaque ceremony onboard<br />

Caledonia Sky cruise ship<br />

Cruise ship Caledonian Sky got a warm welcome on the occasion<br />

of its maiden voyage to Beauty Point courtesy of TasPorts, Tourism<br />

Northern Tasmania and the West Tamar Council.<br />

The small luxury expedition vessel called alongside Inspection<br />

Head Wharf bringing more than 180 passengers and crew to the<br />

Tamar region.<br />

TasPorts executive general manager growth, Matthew Johnston<br />

said the company’s previous $4m investment had enabled<br />

sustainable growth of the cruise industry at Beauty Point.<br />

“TasPorts is supporting regional dispersal of cruise ship<br />

passengers and has invested in infrastructure upgrades at<br />

Inspection Head Wharf to enable expedition ships to call in the<br />

Tamar,” Mr Johnston said.<br />

“The call by Caledonian Sky is the third of her seven scheduled<br />

Tasmanian calls and is the first of two luxury vessels scheduled to<br />

call to Beauty Point this cruise season.”<br />

West Tamar Council Mayor Christina Holmdahl said they were<br />

pleased to see another cruise ship docking.<br />

“The third ship to dock at Beauty Point in the past two years<br />

provides a great boost for our local economy and encourages us that<br />

we’re on the right track with the planned upgrades to the area as<br />

detailed in the Beauty Point Foreshore Master Plan,” she said.<br />

Tourism Northern Tasmania CEO, Chris Griffin said they hoped<br />

cruise ship visits to the Tamar Valley would become a regular<br />

summer occurrence.<br />

“The valley offers exactly what these discerning visitors<br />

are looking for in a Tasmania port visit; great food and wine<br />

experiences enjoyed while meeting real Tasmanian’s and sampling<br />

our unique way of life,” Mr Griffin said.<br />

INDUSTRY EVENTS<br />

2020<br />

23-26 Mar 12th International Harbour Masters Congress, Hobart www.globalportoperations.com<br />

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

Image supplied; TasPorts<br />

14 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


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The first of its SA developments is at<br />

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with planning underway for a second port<br />

at Wallaroo on the Yorke Peninsula.<br />

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vessel, currently nearing completion<br />

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1800 87 67 87 + www.tports.com


<strong>2019</strong> <strong>DCN</strong> AUSTRALIAN SHIPPING & MARITIME INDUSTRY AWARDS<br />

THE SHIPPING & MARITIME INDUSTRY’S<br />

The shipping and maritime logistics industry gathered for<br />

the year’s glitziest gala dinner last month to celebrate the<br />

sector’s outstanding achievers for <strong>2019</strong>.<br />

Among the 460 attendees at the Plaza Ballroom in<br />

Melbourne, were The Hon. Melissa Horne, Victorian<br />

Minister for Public Transport and Minister for Ports and<br />

Freight and MC Olympic great Nicole Livingstone.<br />

This year, Daily Cargo News, presented awards in 19<br />

different categories, for the first time offering separate<br />

awards for environmental excellence and safety. Another<br />

first for the event, was its partnership with RightShip which<br />

enabled the event to be carbon neutral.<br />

The evening raised nearly $5000 for the Mission to<br />

Seafarers (Melbourne) via the traditional raffle.<br />

<strong>DCN</strong> would like to congratulate all the winners, highly<br />

commended entries and all the finalists in this year’s<br />

awards. Additionally, <strong>DCN</strong> thanks all the sponsors,<br />

especially the event’s host sponsor Port of Melbourne.<br />

The next time the Australian Maritime & Shipping<br />

Industry Awards will take place will be in Sydney in 2020.<br />

James Morgan<br />

16 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


AUSTRALIAN MARITIME<br />

HALL OF FAME INDUCTEE<br />

CAPT. JAMES PATRICK<br />

Fairfax Syndicate<br />

Captain James Ronald Patrick was born in Bothwell, Scotland in 1880. Aged 12 he<br />

ran away to sea, serving as an apprentice on the Glasgow Shipping Company’s<br />

Loch Line which operated clippers to Australia. In 1900 he settled in Sydney.<br />

With the advent of World War 1 James Patrick joined the Royal Australian Navy,<br />

serving in many theatres of war and achieved the rank of Lieutenant Commander.<br />

For his service in the Royal Australian Navy Captain James Patrick received<br />

numerous medals including the Gallipoli Star.<br />

Immediately after the war James Patrick formed a new shipping venture Patrick<br />

Steamship Co Ltd.<br />

James along with his two sons, Ken and Ron, the Reeds and Radfords took on<br />

the establishment, and broke down barriers. He was the first to introduce profit<br />

sharing for his crew.<br />

On July 16, 1941 with Australia’s entry into WWII, James Patrick and<br />

Company’s ships were requisitioned by the federal government to be managed<br />

under the control of the Shipping Control Board with Captain Patrick appointed<br />

as a board member.<br />

Sadly, Captain James Ronald Patrick died suddenly<br />

on May 7, 1945 while playing cards with his family.<br />

He was known as a dynamic, courageous and<br />

passionate person and laid the platform for the<br />

largest stevedoring company in Australia.<br />

This year marks the centenary of the company<br />

Captain James Patrick founded. He would be proud<br />

that his legacy is a company that has been at the<br />

forefront of innovation and achievement.<br />

SPONSORED BY HFW<br />

GENDER DIVERSITY<br />

AWARD<br />

WINNER SVITZER AUSTRALIA<br />

Svitzer is addressing gender inequality in<br />

its workforce through the implementation<br />

of a diversity strategy in efforts to increase<br />

the percentage of women from the current<br />

level of 6.9% (the figure is slightly higher<br />

in shore-based roles and lower in seagoing<br />

roles). Globally the company is led<br />

by a female CEO, Henriette Thygesen and<br />

has strong female representation in its<br />

Australian executive. Svitzer Australia’s<br />

senior leadership team comprises 50%<br />

women. This year, the company will<br />

implement the first two phases of its<br />

diversity strategy, which formalises its<br />

commitment to following through on the<br />

actions outlined over the next two years.<br />

Svitzer Australia’s Nicolaj Noes (far right) and<br />

Nicole Holyer accept their award from Robert Dunn<br />

HIGHLY COMMENDED<br />

LINX Cargo Care Group; Port of Brisbane<br />

SPONSORED BY<br />

Port Authority of New South Wales<br />

thedcn.com.au <strong>December</strong> <strong>2019</strong> 17


<strong>2019</strong> <strong>DCN</strong> AUSTRALIAN SHIPPING & MARITIME INDUSTRY AWARDS<br />

NEWSMAKER OF THE YEAR AWARD<br />

WINNER TERESA LLOYD, CEO, MARITIME INDUSTRY AUSTRALIA LIMITED<br />

Teresa provided the evidence needed via<br />

the MIAL Seafaring Skills Census, to show<br />

the looming maritime skills shortage and<br />

underpinned MIAL’s work to preserve and<br />

build Australia’s maritime skills base. MIAL has<br />

just announced a new scope of work, seeking<br />

information from employees and managers on<br />

maritime diversity. Teresa has fought for the<br />

abolition of the Seacare workers’ compensation<br />

scheme, seeking a better and more sustainable<br />

system. She has also driven awareness of the<br />

potential impact of the sulphur cap 2020 not<br />

just within the maritime industry but across<br />

the Australian economy and has pushed the<br />

coastal trading debate, including via discussion<br />

panels prior to this year’s federal election. MIAL<br />

contributed to the sourcing of $160m for the<br />

SBAS (Satellite Based Augmentation System)<br />

Project, vital for safe navigation in Australia.<br />

Teresa has championed women and diversity for<br />

example speaking at the AMSA-facilitated IMO<br />

World Maritime Day function this year in Sydney,<br />

attended by IMO Secretary-General Kitack Lim.<br />

SPONSORED BY Daily Cargo News<br />

<strong>DCN</strong> editor David Sexton<br />

and MIAL CEO Teresa Lloyd<br />

PORT OR TERMINAL<br />

OF THE YEAR AWARD<br />

WINNER MIRRAT<br />

Jed Smith and Nathan<br />

Ullrich of MIRRAT<br />

accept their award<br />

from Svitzer Australia<br />

managing director<br />

Nicolaj Noes (right)<br />

Melbourne International RoRo and<br />

Auto Terminal Pty Ltd (MIRRAT) is<br />

Australia’s largest purpose-built roro<br />

and automotive terminal. Situated<br />

within the Port of Melbourne, the facility<br />

began operations in mid-2016 and has<br />

been servicing the Victorian market as<br />

the sole provider of terminal services<br />

to the PCC and ro-ro segments. The<br />

terminal will increase the ports vehicle<br />

and rolling cargo capacity to about one<br />

million units. Key features include 14,000<br />

automotive laydown bays, 20,000 square<br />

metres of heavy-duty hardstand, two<br />

wash bays and a 120-tonne gantry crane.<br />

At the time of judging, MIRRAT had<br />

facilitated 841 vessel calls and handled<br />

more than 830,000 units across a wide<br />

variety of commodities.<br />

HIGHLY COMMENDED<br />

Port of Townsville; Victoria International<br />

Container Terminal<br />

SPONSORED BY<br />

Svitzer Australia<br />

18 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


&<br />

THE <strong>2019</strong> <strong>DCN</strong> AUSTRALIAN<br />

Shipping<br />

Maritime<br />

INDUSTRY AWARDS<br />

WINNER<br />

PROUD WINNERS OF CUSTOMS<br />

BROKER OF THE YEAR AT<br />

THE <strong>2019</strong> <strong>DCN</strong> SHIPPING<br />

& MARITIME INDUSTRY<br />

AWARDS<br />

Australian owned,<br />

globally focused<br />

All Ports International is proud to have been awarded<br />

Customs Broker of the Year. Professionalism and enhanced<br />

communication with our loyal customer base were crucial<br />

to our strong performance. Talk to us today and see how<br />

our specialist expertise, and innovative customer service,<br />

can make a real difference to your business.<br />

allports.com.au<br />

03 9933 3600


<strong>2019</strong> <strong>DCN</strong> AUSTRALIAN SHIPPING & MARITIME INDUSTRY AWARDS<br />

Dr Rochelle Macdonald (centre) with<br />

Minister Melissa Horne (right) and Sheridan Jones of LINX CCG.<br />

WOMEN IN SHIPPING & MARITIME LOGISTICS AWARD<br />

WINNER DR ROCHELLE MACDONALD<br />

Dr Rochelle Macdonald is an accomplished strategy and<br />

development executive with extensive experience in the<br />

resources, energy and transport industries.<br />

Rochelle was appointed CEO of Mid West Ports Authority<br />

in 2018, having previously led the strategic planning and<br />

organisational change of some of Australia’s leading ports.<br />

Rochelle is the former director of strategy and<br />

development at Dampier Port Authority. She was responsible<br />

for assembling and directing a professional team focused on<br />

the development of the Port of Dampier, Port of Ashburton,<br />

Port of Anketell and Port of Cape Preston East, and success of<br />

infrastructure projects, including Wheatstone and Pluto.<br />

Rochelle’s journey eventually took her east where she<br />

accepted the position of general manager engineering and<br />

development at North Queensland Bulk Ports, going on to<br />

become acting CEO.<br />

After almost three years in Queensland, Rochelle applied<br />

for the position of CEO at MWPA, securing the role out of more<br />

than 200 applicants.<br />

As the fourth female port CEO in Australian history,<br />

Rochelle is also a strong advocate for gender equality in the<br />

maritime workplace.<br />

Rochelle said her executive team at MWPA is a perfect<br />

example of effective promotion of workplace gender diversity.<br />

“I don’t know of any other port in Australia that has that<br />

gender diversity on MWPA executive, with three women and<br />

two men” she says.<br />

“At MWPA, women can do anything. If they want to train as<br />

an engineer, sparky, a boilermaker, it’s open. It’s all about the<br />

best person for the job.”<br />

Using her extensive knowledge of ports spanning almost<br />

two decades, within her first month at MWPA Rochelle had<br />

already embarked on a strategy reset for the organisation.<br />

This includes the release of the draft Geraldton Port<br />

Master Plan – mapping the development and infrastructure<br />

requirements of Geraldton Port to accommodate potentially<br />

significant trade growth over the next 30 years.<br />

HIGHLY COMMENDED Susan Hull; Caroline Zalai<br />

SPONSORED BY LINX Cargo Care Group<br />

Susan Hull (left) and Caroline Zalai<br />

20 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


YOUNG<br />

ACHIEVEMENT<br />

AWARD<br />

WINNER JACKSON MEYER<br />

Establishing Verus Global at the age of<br />

22, Jackson Meyer is leading the next<br />

generation of freight forwarders not<br />

just in Australia but around the world.<br />

He has worked tirelessly to establish<br />

the Verus Global group with 14 offices<br />

in Australia (2), China (7), Hong Kong<br />

and United Kingdom (4). With a global<br />

staff count of 45 and growing, Verus<br />

has a strong focus on connection,<br />

efficiency and innovation. Jackson’s<br />

vision for Verus Global is simple; bridge<br />

the gap between global giants and<br />

local small enterprises. With sales for<br />

FY20 of A$8m and a full-year forecast<br />

showing revenue of A$34m+, he is<br />

well on his way in leading the team to<br />

achieving his mission.<br />

HIGHLY COMMENDED<br />

Alison Cusack; Katie Marshall<br />

SPONSORED BY The Merchant Navy<br />

War Memorial Fund<br />

Jackson Meyer accepts Young Achievement Award from David Field<br />

SUPPLY CHAIN INNOVATION & TECHNOLOGY AWARD<br />

WINNER MIZZEN<br />

Mizzen provides digital rate<br />

management and pricing software<br />

for the container shipping industry<br />

and operates mizzenit.com, a spot<br />

market rate platform enabling<br />

every major shipping line servicing<br />

the Australian trades to deliver<br />

prices to their customers online.<br />

Shipping lines currently using<br />

Mizzen’s digital platform to<br />

automate and provide an instant<br />

rate quote include Maersk,<br />

Hamburg Süd, ANL, CMA CGM,<br />

APL, HMM, Evergreen and Yang<br />

Ming. The business has benefited<br />

from a collaborative approach with<br />

University of Technology Sydney<br />

and 1 Stop Connections, providing<br />

additional data visibility to the<br />

supply chain.<br />

Darren Burden, Jon Charles and (far right) Glenn Butcher from<br />

Mizzen accept award from MIRRAT CEO Nathan Ullrich<br />

HIGHLY COMMENDED<br />

CSL Australia;<br />

LINX Cargo Care Group<br />

SPONSORED BY MIRRAT<br />

thedcn.com.au <strong>December</strong> <strong>2019</strong> 21


<strong>2019</strong> <strong>DCN</strong> AUSTRALIAN SHIPPING & MARITIME INDUSTRY AWARDS<br />

MARITIME SERVICES AWARD<br />

WINNER ENGAGE TOWAGE<br />

Engage Towage was awarded on the<br />

basis of its salvage work of the crude<br />

oil carrier Densa Whale which had lost<br />

engine power and was immobile off<br />

the coast of New South Wales in May<br />

this year. The vessel was carrying<br />

about 150m litres of Nigerian crude oil.<br />

The nearest ports of Port Kembla and<br />

Port Botany were unable to accept the<br />

ship, so a decision was made to tow it<br />

500 nautical miles to Brisbane using<br />

the specialist vessels SL Diamantina<br />

in tandem with the SL Martinique. The<br />

journey was the longest and largest tow<br />

in Australian waters for more than two<br />

decades and took 28 days, performed<br />

in often extreme weather. Thanks to<br />

the efforts of Engage Towage, the Densa<br />

Whale arrived safely in Brisbane.<br />

Mark Malone (left) and Rob Garrett of Engage<br />

Towage with NSW Ports CEO Marika Calfas<br />

HIGHLY COMMENDED<br />

AUSMEPA<br />

SPONSORED BY<br />

NSW Ports<br />

The award-winning team from Engage Towage<br />

ENVIRONMENTAL AWARD<br />

WINNER HULLWIPER<br />

Demand for innovative, green technology is on the<br />

rise within the international shipping industry. Stricter<br />

regulation aimed at controlling the harmful effects<br />

of invasive alien species, the need to reduce carbon<br />

emissions and to mitigate the harmful environmental<br />

impact of heavy metals in paints are being taken<br />

onboard by ports and governments round the world.<br />

HullWiper’s ROV is an eco-friendly, diver and brush<br />

free underwater hull cleaning technology which<br />

significantly reduces fuel consumption, enhances<br />

long-term operating efficiency and leaves a clean hull<br />

that results in lower carbon emissions. The company is<br />

committed to further developing the unit as the most<br />

eco-efficient, progressive and environmentally sound<br />

hull cleaning solution available on the market, capable<br />

of transforming the maintenance industry for good.<br />

HIGHLY COMMENDED Ahmet Hasanof<br />

(DP World Australia); Svitzer Australia<br />

SPONSORED BY CSL Australia<br />

Bjorn Bijma and Paul Western from HullWiper with their award<br />

22 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


COSCO SHIPPING LINES<br />

COSCO is proud to be consistently recognised for excellent value<br />

and service by the Shipping & Maritime Industry<br />

THE <strong>2019</strong> <strong>DCN</strong> AUSTRALIAN<br />

Shipping<br />

Maritime<br />

INDUSTRY AWARDS<br />

HIGHLY COMMENDED<br />

<strong>2019</strong> Highly Commended<br />

Liner Trade Award:<br />

Australia to North East Asia<br />

&<br />

THE <strong>2019</strong> <strong>DCN</strong> AUSTRALIAN<br />

Shipping<br />

Maritime<br />

INDUSTRY AWARDS<br />

HIGHLY COMMENDED<br />

<strong>2019</strong> Highly Commended<br />

Liner Trade Award:<br />

Australia to South East Asia<br />

&<br />

THE <strong>2019</strong>8<br />

<strong>DCN</strong> AUSTRALIAN<br />

Shipping<br />

&<br />

Maritime<br />

INDUSTRY AWARDS<br />

WINNER<br />

2018 Winner of the<br />

Liner Trade Award:<br />

Australia to North East Asia<br />

coscoshipping.com.au


<strong>2019</strong> <strong>DCN</strong> AUSTRALIAN SHIPPING & MARITIME INDUSTRY AWARDS<br />

SAFETY AWARD<br />

WINNER LINX CARGO CARE GROUP<br />

Anthony Jones, Craig Walker and Michael Kemp accept the award for LINX CCG<br />

LINX CCG is an organisation with more than 4000 employees<br />

across 70 sites in two countries. In a first for the Australian<br />

supply chain and logistics industry, the company released<br />

its very own virtual reality safety training platform in March<br />

<strong>2019</strong>. VR training is enabling LCCG to immerse its personnel<br />

in diverse situations and expose them to critical risks in<br />

hazardous work environments. The VR platform has enabled<br />

LCCG to deliver consistent safety training across all levels of<br />

the organisation.<br />

HIGHLY COMMENDED Brad Gardner (DP World Australia)<br />

SPONSORED BY CSL Australia<br />

PHOTO BOOTH by Cusack & Co.<br />

This year, the Australian Shipping & Maritime Industry<br />

Awards featured a fun photo booth, in partnership with<br />

law firm Cusack & Co, where attendees could capture a<br />

record of the event with their friends and colleagues.<br />

Barry Thomas of Hamburg Süd (right)<br />

accepts award from Andrew Adam of DPWA<br />

CUSTOMER SERVICE AWARD<br />

WINNER HAMBURG SÜD<br />

This award recognises the standard of customer service offered<br />

by individual shipping lines, or their agent, as seen by their<br />

customers. The award was not open for individual nomination –<br />

all shipping lines and their agents were automatically judged via<br />

an online survey of subscribers to the <strong>DCN</strong>.<br />

HIGHLY COMMENDED Hapag-Lloyd; OOCL<br />

SPONSORED BY DP World Australia<br />

24 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


SEAFARERS WELFARE<br />

AWARD<br />

WINNER JOHN KEWA<br />

As port chaplain and manager of the Mission<br />

to Seafarers Port Kembla, John Kewa has<br />

made some outstanding contributions to<br />

the welfare of seafarers. This year marks 15<br />

years of dedicated work in his role and he is<br />

still actively engaged with the Port Kembla<br />

community. John has singlehandedly<br />

organised sizeable donations from the main<br />

port users which they now make annually,<br />

and he has helped resolve a number of crew<br />

access and transport issues at Port Kembla.<br />

John is one of the two remaining accredited<br />

Ship Welfare Visitors Course Trainers, and<br />

he would not hesitate to travel across the<br />

country to train port chaplains, volunteers<br />

and others. John has trained more than 100<br />

people across Australia.<br />

HIGHLY COMMENDED<br />

Capt. Nigel Porteous;<br />

The Flying Angel Club Fremantle<br />

John Kewa (right) accepts his award from Allan Schwartz of AMSA<br />

SPONSORED BY Australian Maritime Safety<br />

Authority<br />

CUSTOMS BROKER<br />

OF THE YEAR<br />

AWARD<br />

WINNER ALL PORTS<br />

INTERNATIONAL<br />

All Ports International was<br />

awarded on the basis of its own<br />

nominations and the testimonials<br />

of clients and customers, all<br />

of whom referred to their high<br />

standard of service. They were<br />

variously described as “a young,<br />

fresh and dynamic company”, with<br />

other references to being “super<br />

helpful” and providing “good oldfashioned<br />

service”.<br />

HIGHLY COMMENDED<br />

3DL, Jason Mesiti<br />

(Famous Pacific Shipping)<br />

SPONSORED BY CBFCA<br />

All Ports MD<br />

Deanne Withers<br />

accepts award<br />

from the CBFCA’s<br />

Zoran<br />

Kostadinoski<br />

thedcn.com.au <strong>December</strong> <strong>2019</strong> 25


<strong>2019</strong> <strong>DCN</strong> AUSTRALIAN SHIPPING & MARITIME INDUSTRY AWARDS<br />

EXCELLENCE IN BULK<br />

LOGISTICS OR HEAVY LIFT<br />

HANDLING AWARD<br />

WINNER<br />

BBC CHARTERING AUSTRALIA<br />

BBC Chartering was named this year’s winner<br />

based on several heavy-lift moves but notably<br />

helping transport a ship unloader from<br />

Zhangjiang in China to Brisbane on the deck of<br />

the ship BBC Olympus. The cargo was expertly<br />

computer-modelled and planned well in advance<br />

of any physical activity. It was a tricky operation<br />

with just centimetres of space to place the big<br />

unit onto the rails while avoiding the existing<br />

structures. Months of preparation from the<br />

commercial and technical teams from BBC staff in<br />

Brisbane and Singapore led to the loading of this<br />

incredible piece of machinery.<br />

Alex Wellington of BBC (right) accepts award from Brett Winter from GeelongPort<br />

HIGHLY COMMENDED Wallenius Wilhelmsen<br />

Ocean; Fracht Australia<br />

SPONSORED BY GeelongPort<br />

FREIGHT FORWARDER<br />

OF THE YEAR AWARD<br />

WINNER<br />

WHALE LOGISTICS AUSTRALIA<br />

Whale Logistics is one of Australia’s<br />

leading freight forwarder and<br />

logistics companies. They deliver<br />

digital-focused freight forwarding<br />

services including comprehensive<br />

sea, air and road freight solutions,<br />

parcel delivery, customs clearance,<br />

ecommerce solutions, warehouse<br />

and distribution and tracking. The<br />

company’s entry was based upon<br />

demonstrated productivity and<br />

efficiency improvements, as well as<br />

impressive sales growth. A number<br />

of case studies, including from major<br />

customer Harvey Norman, were used<br />

to support their nomination. In four<br />

years in business they have become<br />

industry leaders.<br />

HIGHLY COMMENDED<br />

Customs Agency Services; Globelink<br />

SPONSORED BY IMPEX Personnel<br />

Ryan Cummings of<br />

Whale Logistics<br />

(right) accepts<br />

award from Tom<br />

Griffiths of IMPEX<br />

26 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


LINER TRADE AWARD<br />

AUSTRALIA - NORTH EAST ASIA<br />

WINNER MAERSK LINE<br />

HIGHLY COMMENDED Evergreen; COSCO Shipping<br />

SPONSORED BY Port of Brisbane<br />

LINER TRADE AWARD<br />

AUSTRALIA - SOUTH EAST ASIA<br />

WINNER OOCL<br />

HIGHLY COMMENDED Maersk Line; COSCO Shipping<br />

SPONSORED BY Daily Cargo News<br />

My Therese Blank of<br />

Maersk accepts award<br />

from Peter Keyte of<br />

Port of Brisbane<br />

LINER TRADE AWARD<br />

AUSTRALIA - NZ, THE PACIFIC<br />

ISLANDS & PNG<br />

WINNER ANL<br />

HIGHLY COMMENDED China Navigation Co; MSC<br />

SPONSORED BY Leibherr-Australia<br />

LINER TRADE AWARD<br />

AUSTRALIA - NORTH AMERICA<br />

WINNER HAMBURG SÜD<br />

HIGHLY COMMENDED ANL; Maersk Line<br />

SPONSORED BY Port of Melbourne<br />

Tim Mason of OOCL accepts award<br />

from Lindsay Reed of Daily Cargo News<br />

CARBON OFFSETTING by RightShip<br />

For the first time, the Australian Shipping & Maritime<br />

Industry Awards ceremony was a carbon-neutral event,<br />

in partnership with maritime risk management and<br />

environmental assessment organisation, RightShip.<br />

The carbon credits purchased to offset the awards<br />

ceremony will support biodiversity restoration in Australia,<br />

as well as renewable energy generation at the coastal Bac<br />

Lieu wind farm in Vietnam.<br />

ANL director Xavier Eiglier (left)<br />

accepts award from Andrew<br />

Vezos of Liebherr Australia<br />

<strong>DCN</strong> Publisher Lloyd O’Harte with Rightship<br />

sustainability specialist Sarah Braude<br />

Barry Thomas<br />

of Hamburg Süd<br />

(right) accepts<br />

award from Port<br />

of Melbourne CEO<br />

Brendan Bourke<br />

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


WOMEN IN MARITIME<br />

Navigating treacherous waters<br />

Reshma Nilofer Naha is the only female marine pilot in India. Her job is to guide ships<br />

on the River Hooghly (sometimes called the Hugli), the route to Kolkata. She attended<br />

the recent Australasian Marine Pilots Institute conference in Sydney and spoke with<br />

Jillian Carson-Jackson about her career and offered some thoughts for the future<br />

What made you consider a maritime<br />

career?<br />

I never dreamt of being in maritime. It was<br />

my desire for an offbeat career that brought<br />

me here. I was at the crossroads looking<br />

for a career option or a change. I saw a<br />

newspaper ad where A.P.Moller and Maersk<br />

(now just Maersk) called for candidates for<br />

a fully-sponsored dual competency bachelor<br />

course (B.Sc. Nautical Science and B.E.<br />

Marine engineering clubbed together) and<br />

they would offer subsequent employment<br />

in their fleet too. I had no second thoughts.<br />

No financial burden for my parents and<br />

employment assurance from the day you<br />

joined college. What more could I ask for?<br />

Reshma Nilofer Naha<br />

Tell me about your career?<br />

After a couple years sailing around the<br />

world aboard some of the biggest Maersk<br />

container ships, I was looking for a career<br />

closer to home. I am the youngest of two<br />

daughters and my elder sister lives abroad.<br />

I had to be closer to my parents and was<br />

looking for a shore option that wasn’t the<br />

typical 9-5 job (I know that I wouldn’t have<br />

survived the monotony).<br />

Another newspaper ad came to my<br />

rescue. I applied for the position of trainee<br />

pilot with Kolkata Port Trust. They sought<br />

applications from junior officers also (no<br />

masters compulsory - due to a big shortage<br />

of masters because of long training periods<br />

in this river passage).<br />

I saw the opportunity to become a<br />

pilot. What followed was six-and-a-half<br />

years of sweat. After extensive training I<br />

became a pilot in early 2018. There has<br />

been no looking back. The job satisfaction<br />

is unparalleled. There is no monotony<br />

and there are challenges galore. The<br />

River Hooghly is considered the most<br />

treacherous river pilotage in the world<br />

with shifting sandbars, varying depths,<br />

an extremely narrow channel and snake<br />

like bends and turns with roaring tidal<br />

currents (up to 10 knots).<br />

What were some of the challenges?<br />

Societal stigma about women in shipping<br />

was among the biggest challenges. Whether<br />

you like it or not, you become a flag<br />

bearer for women. You’re constantly being<br />

watched and judged and sometimes one<br />

gets tired, angry and frustrated. This could<br />

also lead to self-doubt. This is the toughest<br />

battle. To fight that doubting, apprehensive,<br />

discouraging self is what we pioneers have<br />

to somehow overcome. I used methods<br />

like self-pep talks, promising myself to<br />

persevere and drawing support from family<br />

and friends.<br />

We women in maritime need to be<br />

doubly good if not more, to survive here,<br />

to be acknowledged, accepted and taken<br />

seriously. And we women are fortunately so<br />

good at that, multi-tasking and more.<br />

How can we promote maritime careers<br />

for women?<br />

We first need more women out there to<br />

stop the biases, issues and get seafaring<br />

men used to working with women. For this,<br />

we need employers to seriously increase<br />

their female workforce. We still struggle<br />

to get our girl cadets onboard. We need<br />

to give visibility to the champions out<br />

there. We need the women at the helm of<br />

affairs - take those pioneers and put them<br />

in top positions. When they rise, they will<br />

automatically pull up other women along<br />

the way.<br />

What would you like to improve in the<br />

industry?<br />

As an Indian marine pilot I have a few<br />

wishes. We need a robust workforce, bestin-class<br />

personal protective equipment,<br />

license standardisation, more resources,<br />

tools and equipment to help with our work<br />

and better infrastructure. We also need a<br />

better voice as an association of pilots, and<br />

quality safety management systems. These<br />

are what I dream of for my community and<br />

I will work towards.<br />

What else would you like to share?<br />

Being invited to the AMPI conference on<br />

pilotage and port logistics this year has<br />

been the best professional experience for<br />

me, ever. I thank AMPI and the Nautical<br />

Institute of South East Australia for<br />

having sponsored this trip. I have learnt<br />

many lessons. If all goes well, I will have<br />

achieved my dream initiatives for the pilots<br />

community in my country soon enough.<br />

Image supplied<br />

28 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


Gateway to trade and tourism<br />

in regional Australia<br />

Mid West Ports strongly<br />

advocates gender diversity in<br />

the workplace and would like<br />

to congratulate our CEO,<br />

Dr Rochelle Macdonald<br />

on being awarded the<br />

<strong>2019</strong> Women in Shipping<br />

& Maritime Logistics Award.<br />

&<br />

THE <strong>2019</strong> <strong>DCN</strong> AUSTRALIAN<br />

Shipping<br />

Maritime<br />

INDUSTRY AWARDS<br />

WINNER<br />

Mid West Ports Authority has been overseeing safe, secure and efficient port and<br />

marine services in the Mid West region since 1969. MWPA manages one of WA’s most<br />

diverse operations in the Port of Geraldton, facilitating trade to 27 countries and the east<br />

coast of Australia<br />

www.midwestports.com.au<br />

Tel: 08 9964 0520 I PO Box 1856 I 298 Marine Terrace I GERALDTON WA 6531


40 YEARS OF PORT BOTANY<br />

NSW Ports is prioritising on<br />

dock rail solutions to remove<br />

trucks from Sydney’s roads<br />

The rich history of Port Botany<br />

When Port Botany was commissioned on 10 <strong>December</strong> 1979, there were great<br />

expectations about its potential. Since then, it has cemented its place as the heartbeat<br />

of the New South Wales economy, writes Paula Wallace<br />

SYDNEY’S PORT BOTANY OPERATES<br />

and how these factors have changed over<br />

meeting the state’s large bulk liquid needs,”<br />

around the clock handling goods and<br />

time,” she tells Daily Cargo News.<br />

Ms Calfas says.<br />

delivering $3.7bn to annual gross state<br />

“Many people assume that Port Botany<br />

product. It has been central to the<br />

has been around much longer than 40<br />

AN ISLAND NATION<br />

state’s development since it commenced<br />

years. In fact, it doesn’t seem such a<br />

Australia is an island nation and the state<br />

operations 40 years ago.<br />

particularly long time for an asset that has<br />

of NSW has the largest population in the<br />

To mark this anniversary, the operator<br />

become so critical to the economy and our<br />

country. Forty years ago the port was built<br />

of Port Botany, NSW Ports, has compiled<br />

lives. It begs the question, how was NSW’s<br />

to allow NSW to handle the then new<br />

40-plus highlights covering the port’s<br />

trade handled before Port Botany?”<br />

form of goods transport – containers - as<br />

history, which it will unveil as part of<br />

The initial construction of the port<br />

Sydney Harbour did not have the large<br />

celebrations in <strong>December</strong>.<br />

was a feat in itself, and involved the<br />

expanses of land required for container<br />

The good news, according to NSW Ports<br />

reclamation of 260 hectares of port land,<br />

storage and handling.<br />

CEO Marika Calfas, is that Port Botany<br />

access roads, and community parkland.<br />

Botany Bay was identified as the best<br />

still has capacity to handle forecast trade<br />

Wharves, berths and associated facilities<br />

choice to meet the state’s expanding port<br />

growth and she is keen to create awareness<br />

were constructed behind a two-kilometre<br />

needs. It would provide berth and storage<br />

amongst the people of NSW of the port’s<br />

armoured embankment designed to absorb<br />

opportunities with large flat areas of land;<br />

role in their lives.<br />

and dissipate large storm waves.<br />

a deep shipping channel; and proximity to<br />

“The arrival of Port Botany’s 40th<br />

“It was a mammoth undertaking that<br />

distribution areas.<br />

anniversary has given us the opportunity to<br />

reflect on Port Botany’s current operations,<br />

the role the port plays in our society today<br />

delivered a world class facility that could<br />

handle the largest vessels calling Australia<br />

– both at the time, and today – while also<br />

“Port Botany is integrally linked to our<br />

lives and our lifestyles. In fact, in a Sydney<br />

home, 42% of all household goods have<br />

TIMELINE<br />

1969<br />

NSW Government approved the<br />

development of port facilities in Botany<br />

Bay as a port for containers, bulk liquids<br />

and coal. The plan also included a<br />

channel dredged to 21 metres and the<br />

reclamation of 670 hectares of land<br />

stretching from Bumborah Point towards<br />

Sydney Airport.<br />

MARCH 1979<br />

The first container ship arrived at Port<br />

Botany’s ANL terminal (now operated by<br />

Patrick Terminals). The vessel, the Hyogo<br />

Maru, berthed at 10am on 12 March 1979<br />

and exchanged 150 TEU.<br />

DECEMBER 1979<br />

NSW Ports<br />

Port Botany’s Brotherson Dock was<br />

formally opened, beginning a new era for<br />

shipping in Australia.<br />

FEBRUARY 1982<br />

Construction of the second container<br />

terminal at Brotherson Dock<br />

completed. The southern terminal<br />

on Brotherson Dock was operated by<br />

CTAL (now DP World) and brought the<br />

total container capacity of the port to<br />

600,000 TEU per annum.<br />

APRIL 1998<br />

Port Botany became one of a number<br />

of venues involved in the ‘Australian<br />

waterfront dispute’.<br />

30 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


Port Botany is vital for liquid bulk trades<br />

A typical setting at Port Botany<br />

Marika Calfas, CEO, NSW Ports<br />

been imported through Port Botany,” Ms<br />

Calfas says.<br />

It is also Australia’s largest common<br />

user bulk liquids facility. When the bulk<br />

liquids facility opened in 1979 it meant<br />

that fuel no longer had to be trucked from<br />

Melbourne to Sydney, as Sydney could be<br />

supplied directly.<br />

“Critically, Port Botany supports the<br />

livelihoods of 25,000 people through job<br />

creation,” she says.<br />

LOOKING AHEAD<br />

More recently, the Port Botany Expansion<br />

project was a significant event in the<br />

history of Port Botany. It was the biggest<br />

expansion of the port since its original<br />

construction.<br />

The $1bn project included the design<br />

and construction of the third container<br />

terminal for Port Botany, and took more<br />

than 10 years to deliver from inception to<br />

commissioning.<br />

The other significant event was the<br />

introduction of automation into the port,<br />

with Port Botany now boasting two semiautomated<br />

container terminals.<br />

NSW Ports wants to increase the volume<br />

of cargo moved by rail, to reduce truck<br />

growth and has a long-term goal to move<br />

3m TEU by rail.<br />

“This is important for our communities<br />

because for every 1m TEU moved by rail, we<br />

reduce the number of trucks to and from<br />

Port Botany by 900 trucks per day,” Ms<br />

Calfas says.<br />

NSW Ports is also active in conserving<br />

ecology and cultural heritage values at<br />

its sites such as the endangered frog<br />

breeding ponds.<br />

Ms Calfas says one of the most<br />

critical initiatives is to prevent urban<br />

encroachment, to preserve a buffer between<br />

port operations and residential areas.<br />

Port Botany operates 24/7 to meet the<br />

demand of businesses and consumers,<br />

and residential development within close<br />

proximity to the port can pose a risk to<br />

ongoing operations.<br />

“We are strong advocates for<br />

strengthening the legislative planning<br />

controls that protect port assets and<br />

surrounding freight lands, which are<br />

crucial to efficient port operations.<br />

“And whilst there has been considerable<br />

investment in the port over the last 40 years,<br />

there will need to be continued investment<br />

going forward,” Ms Calfas says.<br />

* NSW Ports will celebrate Port Botany’s<br />

40th anniversary in <strong>December</strong> and will release<br />

its 40 highlights book through <strong>DCN</strong> at:<br />

www.thedcn.com.au<br />

JUNE 2000<br />

Port Botany reached the milestone of<br />

one million TEU per annum.<br />

2001<br />

The single biggest development at<br />

Port Botany, the ‘$1 billion Port Botany<br />

Expansion’, was announced in 2001.<br />

The project was designed to cater for<br />

long-term trade growth and included<br />

the design and construction of the third<br />

container terminal.<br />

2010-11<br />

Total container trade through Port Botany<br />

passed two million TEU for the first time.<br />

JULY 2012<br />

Patrick Stevedores committed to<br />

expanding its Port Botany container<br />

terminal and converting it to<br />

AutoStrad operations.<br />

APRIL 2013<br />

NSW Ports took over the management of<br />

Port Botany on a 99-year lease from the<br />

NSW government.<br />

NOVEMBER 2013<br />

Port Botany’s third container terminal<br />

commenced operations on Hayes Dock,<br />

marking the start of operations for<br />

Hutchison Port Holdings.<br />

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

Container volumes at Port Botany<br />

continued to grow, reaching 2.6 million<br />

TEU in <strong>2019</strong>. There are predictions NSW<br />

container volumes could triple to over<br />

seven million TEU in the next 30 years.<br />

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


INDUSTRY OPINION<br />

Exporters worst hit by<br />

stevedore charging regime<br />

Paul Zalai provides a response to the recent DPWA announcements of increased<br />

infrastructure surcharges and ancillary fees effective 1 January 2020<br />

THE INFRASTRUCTURE SURCHARGE<br />

AN EXPORTER’S PERSPECTIVE<br />

to another 265% increase in just over a<br />

(now more appropriately renamed by<br />

In recent correspondence we received from<br />

year, surprising for a system that uses an<br />

DPWA as a Terminal Access Charge) will<br />

Fletcher International Exports in Dubbo<br />

“electronic” user interface.<br />

increase at Fremantle, Melbourne, Sydney<br />

NSW, the impact of the Infrastructure<br />

Again, we ask that stevedores recover all<br />

and Brisbane and will apply to all full<br />

Surcharges/Terminal Access Charges<br />

costs from commercial clients rather than<br />

containers received or delivered to/from<br />

highlighted a significant reduction in<br />

imposing unregulated and increasing costs<br />

landside operators to the terminal. Full<br />

margins that are passed down the supply<br />

on transport operators who have no option<br />

containers received or delivered via road<br />

chain to the farmer through lower paddock<br />

but to pay for terminal access.<br />

will be charged to the road carrier through<br />

prices for their grain.<br />

the 1-Stop Vehicle Booking System. Full<br />

“For FIE’s NSW business alone the<br />

WHO BENEFITS?<br />

containers received or delivered to rail will<br />

infrastructure levy equates to a whopping<br />

It also needs to be questioned ‘who is<br />

be charged to the rail terminal operator as<br />

$1,775,600.00 paid annually, ultimately<br />

benefiting by increased VBS fees’? The<br />

a separate item on the invoices produced.<br />

creating the equivalent void back with<br />

DPWA Fremantle Notice justified an<br />

As outlined in the table, DPWA has the<br />

regional farming communities,” FIE says.<br />

increase in fees by stating initiatives have<br />

highest Infrastructure Surcharge/Terminal<br />

The correspondence also highlights there<br />

delivered a 20% improvement in road<br />

Access Charge of all Australian stevedores.<br />

has been no commensurate performance<br />

efficiency for carriers and contributed<br />

The rate of increase is particularly alarming<br />

improvement from stevedores since<br />

to an increase in rail utilisation. This<br />

with no signs of abating. To put this in<br />

the introduction of the Infrastructure<br />

statement is at variance to the recently<br />

context, the rate at DPWA in Melbourne<br />

Surcharges/Terminal Access Charges and<br />

released ACCC Container Stevedoring<br />

has gone up from $3.45 to now being $98.<br />

expressed serious concerns that there are<br />

Monitoring Report 2018-19 report that<br />

This equates to a staggering 2850% increase<br />

no regulated controls to cap existing costs.<br />

clearly shows truck turnaround times in<br />

in just three years.<br />

The impacts are forcing FIE to consider<br />

Fremantle worsened by 1.6% to an average<br />

We continue to ask regulators to look<br />

a move away from containerised trade<br />

of 22.4 minutes and truck utilisation went<br />

at this model adopted by all Australian<br />

movements to bulk vessel alternatives.<br />

down 1% to 2.41 TEU per truck.<br />

container stevedores of collecting revenue<br />

from third party transport operators. Our<br />

ROAD (VBS) ANCILLARY CHARGES<br />

LEAD TIME FOR FEE INCREASES<br />

argument remains that all charges should<br />

The “sleeper” in the debate is the<br />

DPWA say they recognise the importance<br />

go back to the stevedore’s commercial client<br />

administration fee for the electronic<br />

of working closely with transport<br />

being the shipping line. It is then up to<br />

Vehicle Booking System that will also<br />

operators as part of implementing new or<br />

the shipping line to either absorb this cost<br />

increase at all four of our terminals,<br />

increased charges which is why they are<br />

or pass it on in a negotiated commercial<br />

effective from 1 January 2020. While we<br />

providing extended notice, of 60 days, to<br />

relationship with freight forwarders,<br />

are focused on the main Infrastructure<br />

assist with this transition. The reality is<br />

importers or exporters.<br />

Low margin commodity exporters are<br />

particularly hardest hit by Infrastructure<br />

Surcharges/Terminal Access Charges at a<br />

time also when drought and other supply<br />

chain pressures are impacting exports.<br />

Surcharges/Terminal Access Charges,<br />

ancillary charges are also rapidly increasing<br />

with a VBS administration fee (electronic)<br />

being charged $18.45 per slot from 1<br />

January 2020, when in <strong>December</strong> 2018<br />

they were only $6.95 per slot. This equates<br />

there is no transparency in the process<br />

and furthermore, DPWA’s definition of<br />

consultation is to give us, as the peak<br />

shipper industry body, a courtesy call<br />

15 minutes before making the formal<br />

announcement.<br />

Aerovista Luchtfotografie<br />

32 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


Sixty days lead time is insufficient and is<br />

in fact a reduction to similar announcements<br />

DPWA made the previous year that offered<br />

a 90-day lead time. We received an example<br />

of the impact to a major WA exporter that<br />

these charges will cause significant losses<br />

on existing forward supply commitments<br />

and threaten the future viability of much<br />

of their business.<br />

“These fee increases equate to more<br />

than $1.50 per tonne on every container<br />

that we ship through DP World Fremantle<br />

from 1st January 2020. This fee has also<br />

been without consultation or sufficient<br />

pre-warning, extending the losses to our<br />

existing businesses caused by the abovementioned<br />

Low Sulphur Fuel Surcharge.”<br />

SUPPLY CHAIN IMPACT<br />

Furthermore, transport operators are<br />

understandably passing Infrastructure<br />

Surcharges/Terminal Access Charges<br />

down the supply chain, usually with an<br />

additional administrative fee causing a<br />

further cascading effect of costs onto<br />

exporters and importers. Again, this adds<br />

weight to our argument fees should be<br />

negotiated and paid via contracted parties<br />

and not imposed on transport operators.<br />

RE-BALANCING REVENUE RECOVERY<br />

DPWA provide a general rationale of<br />

increased Infrastructure Surcharges/<br />

Terminal Access Charges at each of their<br />

four container terminals that they are<br />

experiencing rising costs in the most<br />

dynamic and competitive market conditions<br />

in decades. DPWA claim a need to rebalance<br />

revenue recovery from waterside to landside<br />

to adequately account for landside costs and<br />

being fundamental to a sustainable future<br />

in this challenging market.<br />

If the stevedores are in fact<br />

“rebalancing” revenue recovery, then the<br />

obvious beneficiary are shipping lines who<br />

are paying them less. The latest ACCC<br />

Container Stevedoring Monitoring Report<br />

2018-19 shows revenue from quayside<br />

falling from $266.10 per lift in 2009/10 to<br />

just $190.40 per lift in 2018/19, almost a<br />

40% reduction. The report also says since<br />

the last reporting period (between 2017/18<br />

and 2018/19), the quayside revenue per lift<br />

has reduced by 8.1%.<br />

Remarkably, in a depressed economic<br />

environment, stevedores have still<br />

managed to increase average revenue per<br />

container lift for the first time in seven<br />

years. According to the ACCC report, this<br />

is attributable to the continuing cycle<br />

of increases in stevedore Infrastructure<br />

Surcharges. Something does not stack up<br />

as shipping lines are certainly not passing<br />

on savings to exporters and importers via<br />

lower terminal handling charges. The result<br />

being that exporters and importers are<br />

copping a double whammy of increasing<br />

charges without any offset or reduction<br />

in shipping line administered terminal<br />

handling charges.<br />

FINAL THOUGHTS<br />

While Infrastructure Surcharges/Terminal<br />

Access Charges provide stevedores with<br />

a healthy profit, they have significantly<br />

increased the commercial strain on<br />

logistics service providers who must carry<br />

the impost of the charges in the first<br />

instance and ultimately pass costs onto<br />

exporters and importers.<br />

Paul Zalai, director and co-founder of the Freight<br />

and Trade Alliance and secretariat to the<br />

Australian Peak Shippers Association<br />

According to the World Bank Group<br />

report Doing Business <strong>2019</strong>, Australia<br />

ranks 103rd for “trading across borders”<br />

which measures a variety of costs<br />

including domestic transport. These<br />

spiralling increases in unregulated fees<br />

administered by Australian stevedores<br />

will only further negatively impact on our<br />

international standing.<br />

While we continue to benefit from Free<br />

Trade Agreements, Mutual Recognition<br />

Arrangements and the like, our respective<br />

state and federal governments now need<br />

to look at market access barriers at our<br />

ports and introduce regulation to support<br />

our trade sector. More must be done to<br />

ensure a level-playing field for shippers and<br />

transport operators.<br />

INFRASTRUCTURE SURCHARGES - AS AT NOVEMBER <strong>2019</strong><br />

Image supplied<br />

STEVEDORE<br />

PORT<br />

INFRASTRUCTURE<br />

SURCHARGE/ TERMINAL<br />

ACCESS CHARGE<br />

DATE<br />

COMMENCED<br />

TERMINAL ACCESS CHARGE<br />

INCREASE COMMENCING<br />

1 JAN 2020<br />

Flinders Adelaide Container Terminal Adelaide $28.50 per full container + GST 1 Jul 18<br />

Australian Amalgamated Terminals Brisbane $38. 70 per full container + GST 8 Nov 18<br />

DP World Australia Brisbane $65.15 per container + GST 1 Jan 19 $89 per container + GST<br />

Hutchison Ports Brisbane $50 per full container + GST 19 Aug 19<br />

Patrick Brisbane $71.50 per laden container + GST 4 Mar 19<br />

DP World Australia Fremantle $8.22 per container + GST 18 Sep 17 $45 per container + GST<br />

Patrick Fremantle $7.50 per laden container + GST 12 Mar 18<br />

DP World Australia Melbourne $85.30 per container + GST 1 Jan 19 $98 per container + GST<br />

Patrick Melbourne $82.50 per laden container + GST 4 Mar 19<br />

Victoria International Container Terminal Melbourne $85.00 per full container + GST 1 Mar 19<br />

DP World Australia Sydney $63.80 per container + GST 1 Jan 19 $91 per container + GST<br />

Hutchison Ports Sydney $63.11 per full container + GST 18 Nov 19<br />

Data collated courtesy of the Australian Peak Shippers Association, Freight & Trade Alliance and the Container Transport Alliance Australia<br />

thedcn.com.au <strong>December</strong> <strong>2019</strong> 33


NORTHERN TERRITORY<br />

FUELLING CHANGE<br />

in the<br />

An LNG vessel at Port of Darwin<br />

34 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


Beyond the tropical setting there is work going on in and around<br />

Darwin’s port by way of new infrastructure, writes David Sexton<br />

Port of Darwin<br />

Lying closer to Bali than Sydney, the city of Darwin,<br />

capital of the Northern Territory has naturally<br />

attracted dreamers. Those who see the big picture<br />

and the region’s ability to connect Australia with<br />

its Asian neighbours. Sometimes these dreams<br />

may have been over-ambitious – the Alice Springs to<br />

Darwin rail connection is not universally loved - but<br />

there is much going on at present which suggests<br />

justifiable cause for optimism.<br />

One large new project for Darwin is the ‘ship lift’,<br />

with the Territory government set to build the largest<br />

dry dock facility in Northern Australia. Not only<br />

is it seen as a job creator in the short term but also<br />

positioning Darwin as an international and national<br />

player in the marine services industry.<br />

Territory-owned and based Paspaley Group is<br />

partnering with the government in the $400m project.<br />

The company owns and maintains a large fleet of<br />

vessels, with many sailing in and out of Darwin<br />

harbour regularly. The vessels currently maintained in<br />

Darwin will help ensure the ongoing viability of the<br />

ship lift, as the anchor tenant for the facility.<br />

The NT requires a ship lift to maintain vessels<br />

operating in or visiting Darwin harbour both now and<br />

for the future. The new facility is said to be crucial<br />

to keep pace with the growing industry demands and<br />

increasing vessel sizes.<br />

Darwin is the only functional deep water harbour<br />

in Northern Australia, enhancing the need for this<br />

infrastructure. Construction of the facility is set to<br />

start in 2021 with the concept to be operational in<br />

2023. The ship lift is to be 103m in length, 26m wide<br />

and have a draft of 6m.<br />

Key design features of the ship lift include 20<br />

hectares of hardstand area for ship repair and<br />

maintenance works; ship lift capable of lifting vessels<br />

up to 5,000 tonnes; and four wet berths (wharves).<br />

A spokesperson for the Northern Territory<br />

Department of Trade, Business and Innovation said<br />

the ship lift would be an improvement on anything<br />

currently operating in Darwin.<br />

“The current commercial ship lift facilities in<br />

Darwin are aging and small, and the ship lift at the<br />

Coonawarra Naval Base is due to be decommissioned<br />

by 2024,” the spokesperson said.<br />

Such developments auger well for the development of<br />

the Darwin and NT maritime cluster.<br />

THE PORT OPERATOR’S PERSPECTIVE<br />

It is a theme taken up by Darwin Port’s CEO Darren<br />

Lambourn, who moved into the top job three months<br />

ago replacing Terry O’Connor.<br />

Darren Lambourn’s journey to becoming Darwin<br />

Port CEO is a long one.<br />

Originally a Queenslander, he started his career<br />

with P&O as a stevedore and tradesman. He has held<br />

senior management role roles with ports (Bunbury<br />

and Albany), was general manager for port and marine<br />

for Pilbara magnetite project CITIC Pacific Mining,<br />

and also worked for QUBE at Port Hedland, getting<br />

Utah Point “up and running”.<br />

“I basically came from the floor,” he says.<br />

So how has he enjoyed the role so far?<br />

“Yes it’s great, good climate here,” he says. “The<br />

people [in Darwin] make you feel very welcome. I like<br />

the tropics and it suits myself and my family very well.”<br />

Mr Lambourn tells <strong>DCN</strong> about some of the services<br />

offered by Darwin Port and where growth is occurring<br />

starting with gas.<br />

“With the gas it is certainly growing, we offer<br />

services and with INPEX coming on board we’ve seen a<br />

good increase in vessel movements through the port.”<br />

The Ichthys LNG Project’s involvement with<br />

Darwin officially started in September 2008, when<br />

operator INPEX and then sole joint venture partner<br />

Total announced the NT as the preferred home for its<br />

onshore processing facilities.<br />

Since then, INPEX has opened an office in the<br />

Darwin CBD, the project was granted environmental<br />

approval, a 3500 person accommodation village in<br />

Howard Springs was completed and two dredging<br />

campaigns helped deepen the shipping channel in<br />

Darwin Harbour.<br />

At Bladin Point, a 361 hectare site is carefully<br />

being transformed into one of the world’s largest LNG<br />

processing facilities.<br />

“It is looking good for gas and new reserves of gas<br />

that are coming through. The industry up here is<br />

pretty buoyant and the same with the onshore gas and<br />

exploration, that is exciting,” he says.<br />

Mr Lambourn talks of onshore gas finds being “a big<br />

game-changer for the Northern Territory”.<br />

Darwin’s economic growth is generally considered<br />

to have dipped since completion of the INPEX facilities,<br />

but there are positive signs.<br />

“In regards the Northern Territory, we’ve sort of<br />

been on a downward incline since the construction of<br />

INPEX. It’s like any regional city,” he says.<br />

“I was at [Port] Hedland and also at Karratha from<br />

the boom to the downward slide and I think that’s<br />

where we are at the moment.<br />

“We’re coming out of the slide – we see<br />

improvements, we certainly see improvements in<br />

mineral deposits and especially in smaller volume,<br />

higher value products like lithium and copper. We see<br />

big growth there.”<br />

He notes recent exploration activity by major miner<br />

Rio Tinto.<br />

thedcn.com.au <strong>December</strong> <strong>2019</strong> 35


NORTHERN TERRITORY<br />

An artist’s impression of the new ship lift to be built in Darwin<br />

Mike Hughes,<br />

managing<br />

director,<br />

Landbridge<br />

We certainly see<br />

improvements in<br />

mineral deposits<br />

and especially<br />

in smaller<br />

volume, higher<br />

value products<br />

like lithium and<br />

copper.<br />

Darren<br />

Lambourn,<br />

Port of Darwin<br />

Mr Lambourn describes TEU throughput as “a<br />

reflection of the NT economy”, in that it is relatively<br />

quiet at present.<br />

“I do see an increase over the next 18-months to<br />

three years in [container trade] through the port which<br />

is great,” he says.<br />

Mr Lambourn talks about the significance of pilotage<br />

for the Port of Darwin, being as it is a service centre.<br />

“We are also a service provider and offshore gas<br />

is really important for us. We need to harness that<br />

business. When you are a service provider in the way<br />

of pilotage, you need to make sure you keep your<br />

customers happy.<br />

“So that is certainly one area we focus on in the<br />

marine side.”<br />

AN ACTIVE ROLE<br />

Mr Lambourn talks about helping people develop their<br />

deposits of key commodities.<br />

“Because we are now leased to a private business<br />

(Landbridge), we can actually do a little bit more than<br />

we used to do and potentially become partners in some<br />

projects to get them over the line,” he says.<br />

“We have a lot of really good people with great<br />

expertise who we can actually help get these projects<br />

over the line.<br />

“We have a number of businesses all wrapped up<br />

in the port – like any port in Australia has a number<br />

of facets – and they are all important to us and we are<br />

concentrating on each of those individual areas.<br />

“That is what will be key. It is not about growth in<br />

one area – it is about incremental growth in all areas.”<br />

BREAKBULK AND COASTAL TRADES<br />

Breakbulk and project cargo is an important trade<br />

sector for Darwin and something upon which Mr<br />

Lambourn is keen to expand.<br />

“It is a big role here, it depends when it happens, the<br />

same as with a lot of regional ports,” he says.<br />

“So when it’s ‘on’ it’s on and it is jam-packed with<br />

breakbulk and that cargo. At the moment it’s not<br />

on, but as various projects come back online as they<br />

will over the next 18-months, I will see a lot more<br />

breakbulk through here.<br />

“[The lull] gives us an opportunity to plan for the<br />

next breakbulk surge and look at our land use plan.<br />

How do we look at our land use plan and how we<br />

can develop that land use to make it better and more<br />

efficient?”<br />

Darwin also plays an important role in coastal<br />

trades, helping link small island communities such as<br />

the Tiwi Islands and into the Gulf of Carpentaria, via<br />

businesses such as Sea Swift.<br />

“We work closely with some providers of that<br />

offshore trade and we will see more of that closer<br />

working relationship closer down the track.<br />

“It is really important for those communities to get<br />

produce through [the ports].”<br />

ASIAN PICTURE<br />

<strong>DCN</strong> asked Mr Lambourn if Port of Darwin could<br />

take advantage of its proximity to Asia or whether its<br />

distance from the bulk of the Australian population<br />

rendered any advantage limited.<br />

Mr Lambourn believes there are many benefits to<br />

be leveraged.<br />

“As more efficiencies happen on rail and it becomes<br />

more cost-effective, there are huge opportunities for<br />

the Northern Territory and Darwin,” he says, adding<br />

that it takes only three days to sail to Indonesia.<br />

NT government; David Sexton<br />

36 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


NORTHERN TERRITORY<br />

The Darwin waterfront<br />

Darren<br />

Lambourn, CEO,<br />

Darwin Port<br />

Looking forward,<br />

one of our<br />

challenges has<br />

always been<br />

that the scale<br />

of particularly<br />

containerised<br />

traffic through<br />

Darwin is small.<br />

Mike Hughes,<br />

Landbridge<br />

“Then if more coastal shipping comes about… once<br />

that happens, I think we are going to be a very strategic<br />

part of the Australian shipping route... for the reason<br />

that we have a lot of land in Darwin, a good workforce<br />

and we are so close to Asia.<br />

“Certainly we are well-positioned.”<br />

NEW INFRASTRUCTURE<br />

Mr Lambourn is enthusiastic about some of the new<br />

infrastructure being put in place.<br />

“We are putting in [space] for reefers [containers]<br />

and looking at the beef trade increasing, we do 400,000<br />

head through here [a year], we certainly are the biggest<br />

exporter of live cattle in Australia,” he says.<br />

“We also see an opportunity for frozen beef. So<br />

we’ve started that infrastructure and we are looking at<br />

expanding the cruise terminal,” he says, adding that<br />

the port also provides services to the Australian Navy.<br />

“The NT government are looking at putting the ship<br />

lift right on the doorstep of the port and we see some<br />

opportunity there as well to be able to help facilitate<br />

some of that industry through there as it grows.<br />

“So we are looking at opportunities that come our way.”<br />

Darwin has the additional advantage of plentiful land.<br />

“The thing we have here is a lot of unutilised land in<br />

the port boundaries. So what is that going to best fit for<br />

both Darwin Port and also assisting the other trades and<br />

trying to navigate those waters,” Mr Lambourn says.<br />

A VISION FOR THE FUTURE<br />

Mr Lambourn says the port needs to plan for the next<br />

20 to 25 years.<br />

“Is [the future} going to be bulk, is it going to be sheds<br />

for high quality products? A lot of [our focus] is about that<br />

planning, customer engagement, talking to customers<br />

and showing exactly what we have got in Darwin.<br />

“My vision… is to run a really good operation here<br />

and that warrants people want to come and have their<br />

trade through this port,” Mr Lambourn says.<br />

“Number one, we need to make a profit that is<br />

normal for any business. But also services, I think there<br />

is a whole heap of services we could provide.<br />

“I would like to see good occupancy rates on our<br />

berths, a good, efficient workforce and getting product<br />

away from the quay line large storage facilities and<br />

then back into the community and even to South<br />

Australia,” he says.<br />

THE LANDBRIDGE ACQUISITION<br />

Landbridge acquired (via long term lease) the Port of<br />

Darwin in late 2015 and earlier this year, <strong>DCN</strong> spoke<br />

with Landbridge managing director Mike Hughes about<br />

the experience to date.<br />

“Overall very positive I think,” Mr Hughes said at<br />

the time.<br />

“It is fair to say we leased the port in what was<br />

a downturn in the cycle, commodity prices were<br />

down, the Ichthys project was coming to the end<br />

of construction and there was a bit of a gap before<br />

commissioning and production.<br />

“But the upward trajectory in business has happened<br />

pretty much as we had expected, so Ichthys is now in<br />

production.”<br />

“[Darwin is] a very significant exporting port.<br />

Port of Darwin<br />

38 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


“Some of the minerals have come back. So the port is<br />

performing very well, or as expected, and certainly<br />

our ongoing relationship with the Northern<br />

Territory government has been very positive so we<br />

are working very collaboratively on the development<br />

of the north generally.”<br />

Mr Hughes notes the relatively small scale of<br />

container trade at Darwin.<br />

“Looking forward, one of our challenges has always<br />

been that the scale of containerised traffic through<br />

Darwin is small, so maintaining a cost-effective supply<br />

through Darwin is a challenge and we clearly need to<br />

build scale.”<br />

MACRO PERSPECTIVE<br />

If Darwin Port often reflects the state of the NT<br />

economy, it is worth seeking some macro perspective.<br />

In a recent economic briefing paper, Deloitte Access<br />

Economics forecast the Territory economy to grow by<br />

an average of 2.7% per annum over the five years to<br />

2022-23, compared with forecast national growth of<br />

2.5% over the same period.<br />

“This is the second highest forecast five-year<br />

average economic growth of the jurisdictions, equal<br />

with Victoria, and is largely driven by exports. In<br />

other jurisdictions, the five year annual average<br />

economic growth ranges from 1.7% per annum in<br />

South Australia to 2.9% per annum in Queensland,”<br />

DAE stated.<br />

Professor Rolf Gerritsen, principal researcher<br />

and professorial research fellow at Charles Darwin<br />

University is of a similar mind.<br />

He notes that while the economy of Darwin is<br />

still fairly slow, there were positive signs in other<br />

parts of the Territory, for example a slight increase<br />

in Alice Springs house prices “for the first time in<br />

about five years”.<br />

“I think it is partly that we had an unprecedented<br />

tourist boom, mostly in central Australia,” Professor<br />

Gerritsen says.<br />

“In the north, or the Darwin region specifically,<br />

tourism has been flat, and they’re looking for more<br />

cruise ships to come in which looks like it might<br />

happen,” he says.<br />

“Tourism in the Territory has gone up, but mostly<br />

PORT OF DARWIN 2018-19 STATS<br />

TOTAL<br />

^13 %<br />

2154 vessel visits<br />

Dry bulk exports<br />

892,000<br />

tonnes<br />

114<br />

LNG vessel visits<br />

^ 64 in total<br />

^%16<br />

because of a huge increase in Central Australia.<br />

“A huge number of people went to Uluru to climb<br />

it in the last few months. That boom I suspect will<br />

evaporate next year.”<br />

Professor Gerritsen says the Territory mining<br />

industry is “looking good”, notably phosphate and the<br />

Nolans Bore rare earth deposit which is attracting<br />

interest due to geopolitical tensions with China – a<br />

major supplier of this commodity to the world.<br />

“[Nolans Bore] is attracting a lot of attention.<br />

The company that owns it, Arafura Resources, is a<br />

fairly small Perth company. They are trying to get the<br />

Australian government or the American government<br />

– they’ve actually had talks with the US government –<br />

because rare earth deposits are a strategic commodity<br />

these days,” he says.<br />

“That mine will go ahead, however it is financed.”<br />

Overall, he says, mineral trades are going well, with<br />

the exception of iron ore.<br />

Cattle exports are also an area of strong business,<br />

with predictions of an increase particularly if access<br />

is gained to Indigenous land.<br />

“One of the constraints on the Territory cattle<br />

industry, particularly further south from Katherine,<br />

is that there aren’t enough bores.”<br />

Livestock exports<br />

397,000<br />

^9 %<br />

Cruise<br />

ship visits<br />

^9 %<br />

Source:<br />

Port of Darwin<br />

Who helps those who are key to our industry?<br />

Janice Carlson; Dudarev Mikhail<br />

Piracy, shipwreck, abandonment and separation from loved<br />

ones are just a few of the problems merchant seafarers face.<br />

Around the world, The Mission to Seafarers provides help<br />

and support to the 1.5 million men and women who face<br />

danger every day to keep our global economy afloat.<br />

Your financial support would be much appreciated.<br />

Donate now: BSB 062 074 Account 1000 8062 (Tax-deductible)<br />

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THE MISSION TO SEAFARERS, Sydney<br />

24 Hickson Rd, Millers Point NSW 2000<br />

Tel +61 (0)2 92413009<br />

enquiries@missiontoseafarers.org.au<br />

thedcn.com.au <strong>December</strong> <strong>2019</strong> 39


AIR CARGO<br />

Jaromir Chalabala<br />

40 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


Picked one day and on plates in<br />

Asia the next – this is what the<br />

future of freight in Australia looks<br />

like and it’s in the air, writes Janine Hill<br />

Air freighting goods to and from Australia is tipped to grow significantly in<br />

coming years. At the heart of this transformation is the Western Sydney<br />

International (Nancy-Bird Walton) Airport, a project that is set to be a<br />

game-changer for domestic and international freight.<br />

The Australian Government is investing up to $5.3bn in equity to<br />

deliver the airport at Badgerys Creek through a government-owned company,<br />

Western Sydney Airport.<br />

Unrestricted by curfews, the airport will offer unprecedented opportunities<br />

for freight movement around and in and out of the country and will have a big<br />

impact on business.<br />

WSA chief Graham Millettt predicts the benefits of 24/7 flights will<br />

be most noticeable in industries with products that are time or even<br />

temperature-sensitive.<br />

“The opportunities for agribusiness are significant, with fresh Australian<br />

produce from across the region and beyond into regional New South Wales<br />

capable of being harvested from paddocks and onto plates in Asia overnight,”<br />

he tells Daily Cargo News.<br />

thedcn.com.au <strong>December</strong> <strong>2019</strong> 41


AIR CARGO<br />

“Western Sydney International represents the next<br />

step in increasing air cargo capacity for Australia’s<br />

biggest market but it also provides opportunity to<br />

increase the share market of air cargo in the overall<br />

logistics stream, especially for highly sought-after<br />

exports such as perishables.”<br />

Australian<br />

airports currently<br />

transport more<br />

than one million<br />

tonnes of air<br />

freight annually<br />

and this is<br />

forecast to grow<br />

considerably over<br />

the next decade.<br />

Aerial view of the WSA site at Badgerys Creek in western Sydney<br />

“Growing demand for pharmaceuticals,<br />

temperature-sensitive and perishable products will also<br />

play a key role in the future of air freight.”<br />

As Mr Millett explains, the new airport will<br />

reconfigure the way goods are also moved to the point<br />

of export, reducing the need to move goods by road in<br />

the quest for a suitable international flight.<br />

“Goods produced in New South Wales will no longer<br />

have to be trucked to Brisbane or Melbourne in order to<br />

reach lucrative Asian markets overnight,” he says.<br />

Peter Assel, managing director of freight company<br />

Skyroad Logistics, says WSA has significant air cargo<br />

export and import opportunities.<br />

“Sydney remains the hardest city in which to<br />

handle air cargo movements into and out of due to<br />

its infrastructure limitations, and Western Sydney<br />

International not only represents a solution for this but<br />

also a closer solution than current secondary feeder<br />

airports,” Mr Assel says.<br />

NEW KID ON THE BLOCK<br />

Australian airports currently transport more than<br />

one million tonnes of air freight annually and this is<br />

forecast to grow considerably over the next decade. The<br />

airport, due for completion by 2026, will come online<br />

in time to claim a share of this growing market.<br />

Initial earthworks began at Badgerys Creek last year<br />

and more than 1.5m tonnes of earth has so far been<br />

moved on the 1780 hectare site. A terminal design has<br />

just been released and construction on that is expected<br />

to start in 2022.<br />

An architectural team made up of London-based<br />

Zaha Hadid Architects and Cox Architecture in Sydney<br />

was chosen from more than 40 entrants as the winners<br />

of the terminal precinct design competition.<br />

“The brief was to design an airport that the people of<br />

western Sydney can be proud of and provide a real sense<br />

of place that pays tribute to the natural landforms,<br />

history and features of greater Sydney,” Mr Millett says.<br />

“While the exterior of the terminal complements<br />

the natural landscape beautifully, we’ve always said<br />

that our focus was on the customer journey within<br />

the terminal and that really shines through in these<br />

concept designs.”<br />

He says sustainability was another key criterion<br />

and the winning design stood out for its use of passive<br />

design, taking advantage of natural airflows and<br />

lighting and efficient solar shading.<br />

ZHA project director Cristiano Ceccato said it was<br />

an honour to have been selected and that the “design<br />

VIRGIN AUSTRALIA TO ADD TOKYO TO CARGO NETWORK<br />

Virgin Australia will add Japan to its<br />

international cargo network in March<br />

with the launch of daily services between<br />

Brisbane and Tokyo-Haneda.<br />

Commencing on 29 March 2020,<br />

cargo space on the new route will be<br />

marketed by Virgin Atlantic Cargo under<br />

its international long-haul sales and<br />

marketing agreement with Virgin Australia.<br />

The daily Airbus A330 flight will offer<br />

between 15-20 tonnes of cargo capacity.<br />

The new route, Virgin Australia’s<br />

first-ever service to Tokyo, is expected<br />

to attract strong demand from both<br />

passengers and cargo customers.<br />

With the launch of the new Brisbane-<br />

Tokyo route, Virgin Australia will be<br />

suspending its existing Hong Kong-<br />

Melbourne service with effect from 11<br />

February 2020 due to softening passenger<br />

demand but will continue to closely<br />

monitor the route and look to re-enter the<br />

market in the future.<br />

Dominic Kennedy, managing director of<br />

Virgin Atlantic Cargo, says, “Cargo customers<br />

in Australia and Japan will be very pleased<br />

to see the launch of Tokyo-Haneda services<br />

and we expect this new direct route to<br />

open up significant opportunities for both<br />

imports and exports”.<br />

The company will continue to<br />

offer capacity on Virgin Australia’s<br />

daily Sydney-Hong Kong flights and<br />

provide a direct trucking service<br />

between Melbourne and Sydney to<br />

ensure customers retain access to the<br />

important Hong Kong cargo market.<br />

Virgin Atlantic Cargo trades in<br />

37 countries and sells services to<br />

destinations in over 60 countries.<br />

Western Sydney Airport; Ryan Fletcher<br />

42 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


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AIR CARGO<br />

LITTLE DISRUPTION FROM ENHANCED EXAMINATION<br />

The extension of stringent air cargo examination<br />

procedures to all exports has occurred this year without<br />

major disruption, according to the Australian Federation of<br />

International Forwarders.<br />

The Enhanced Air Cargo Examination system was extended<br />

from exports to the United States only to all international<br />

exports in March.<br />

AFIF business affairs manager Stuart McFarlane says despite<br />

the potential for disruption to air freight exports, the roll-out<br />

across the board has occurred remarkably smoothly.<br />

EACE requires all international air freight from Australia<br />

be examined at piece level by a regulated air cargo agent<br />

or originate from a known consignor and be issued with a<br />

security declaration.<br />

The scheme was initially implemented on air freight from<br />

Australia to the United States in July 2017. Following the<br />

terrorist plot to blow up an Etihad plane leaving Sydney,<br />

the Department of Home Affairs then extended the same<br />

requirements to all cargo exported by air from Australia from 1<br />

March this year.<br />

Mr McFarlane says the extension of the scheme required<br />

investment by several companies in new scanning equipment<br />

and staff training.<br />

There are now 52 regulated air cargo agents at freight<br />

forwarders and cargo terminal operators at 129 EACE<br />

examination sites and another 305 known consignors at 406<br />

sites, he says.<br />

Mr McFarlane says it helped that the examination load<br />

had been spread widely when the new requirements came<br />

into effect.<br />

“The fact that there are several off-airport RACAs has meant<br />

that the bottle-necking that was anticipated to occur at the<br />

CTOs has been avoided, as the examination load is spread<br />

across multiple parties in the chain,” he says.<br />

“That meant a sort of soft landing, compared to what it<br />

might have otherwise been.”<br />

Mr McFarlane says the clearing of cargo is fairly evenly<br />

spread across the off-airport RACA freight forwarders, CTOs,<br />

and the known consignors.<br />

He says the advantage for customers of using off-airport<br />

freight forwarders is that cargo is the subject to only a twohour<br />

cut-off time at the airports, while a six hour cut-off was<br />

necessary if goods had to be examined by CTOs.<br />

Mr McFarlane says the extra examination involved had<br />

added another layer to the freight forwarders’ role but the<br />

impact was not unworkable.<br />

“There’s a bit of extra time involved in having to do the<br />

checking at the piece-level. It’s a burden but not a large<br />

burden,” he says, adding that authorities have been reasonable<br />

in working with the private sector to ensure the smooth<br />

transition to the new system.<br />

“The freight forwarders have adapted to a new regime, but<br />

it would be fair to say that once everybody got into a routine<br />

pattern or structure of looking after their exports, it’s just been<br />

business as usual,” he says.<br />

But Mr McFarlane acknowledged that there was the<br />

potential for delays during the peak season as extra goods<br />

were sent all over the world prior to Christmas.<br />

Mr McFarlane says the EACE requirements will be extended<br />

into the domestic sphere next but he says the industry has so<br />

far handled the extra impost well.<br />

“It’s been quite an achievement by the industry to get the<br />

equipment and train their staff to operate the equipment but I<br />

commend the industry for responding professionally,” he says.<br />

Stuart McFarlane, business affairs<br />

manager, Australian Federation of<br />

International Forwarders<br />

Goods produced in<br />

New South Wales<br />

will no longer<br />

have to be trucked<br />

to Brisbane or<br />

Melbourne in<br />

order to reach<br />

lucrative Asian<br />

markets overnight<br />

Graham<br />

Millett, WSA<br />

is an evolution of Australian architecture past,<br />

present and future”.<br />

Cox project director David Holm said the design<br />

took inspiration from “the unique local flora of western<br />

Sydney and the great Australian light to create an<br />

unmistakable regional identity”.<br />

Mr Millett said the architects would consult with<br />

groups across the community as they refine the initial<br />

concept design.<br />

“We’re pleased the architectural team has already<br />

engaged Western Sydney University students and local<br />

Dharug community members during the initial concept<br />

design development,” he says.<br />

“We’ll now be working closely with key<br />

government, industry and community stakeholders as<br />

we further refine and enhance the concepts to arrive<br />

at a final design.”<br />

The airport is expected to be a catalyst for business<br />

development and employment and has been designed<br />

to grow with demand to handle well beyond the initial<br />

volumes of freight.<br />

“The first stage of the airport has the potential to<br />

process around 220,000 tonnes of freight each year<br />

through its proposed on-airport freight facility, with<br />

multiple dedicated freighter aircraft stands,” Mr<br />

Millett says.<br />

“This is set to scale up with demand, potentially<br />

handling 1.8 million tonnes of air freight each year in<br />

the future.”<br />

DESIGNING FROM THE GROUND UP<br />

The new airport is a rare opportunity to design a<br />

facility especially for freight and to ensure the best<br />

possible result, according to Mr Millett. To that end,<br />

WSA is working with freight companies on design and<br />

operation of the precinct.<br />

The company has entered into memorandums of<br />

understanding with a number of major Australian<br />

and global freight companies including Australia Post,<br />

DB Schenker, DHL Express, DSV Air and Sea, FedEx,<br />

Menzies Aviation, Swissport, Qantas Freight, Skyroad<br />

Logistics and Wymap.<br />

David Sexton<br />

44 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


Initial design concepts have been unveiled<br />

for Western Sydney International (Nancy-Bird Walton) Airport<br />

Unrestricted by curfews, WSA will<br />

offer unprecedented opportunities<br />

for freight movement inside and<br />

outside Australia<br />

“Insights from these international freight leaders<br />

will help WSA optimise the design and functionality<br />

for its customers,” Mr Millett says.<br />

Menzies Aviation general manager of cargo NSW<br />

and ACT Kayla Moa, says the airport will go some way<br />

towards solving present demands for flight routes and<br />

will give airlines an added option, considering cargo<br />

volumes are expected to double over the next 20 years.<br />

“WSA will be able to provide state-of-the-art<br />

infrastructure with purpose-built cargo facilities<br />

servicing international, domestic and freighter aircrafts<br />

while operating curfew free,” she says.<br />

Ms Moa says the MoU allows Menzies to be involved<br />

with design concepts for the on-airport freight precinct<br />

and begin discussions about potential operations at the<br />

new airport, leading to a smooth start to operations.<br />

“Being a part of the design discussion will ensure<br />

that the 220,000 tonnes of air-freight expected in the<br />

initial 12 months will be able to be handled efficiently<br />

in the best facilities with the latest innovative<br />

warehouse solutions,” she says.<br />

“The dedicated space located adjacent to the airport<br />

specifically for Australian exporters and agribusinesses<br />

ensures the delivery of cargo to the airport is not caught<br />

up on congested roads and transportation is reduced.”<br />

The Aerotropolis, as the airport precinct is being termed,<br />

will be served by a rail link through to St Marys’and a rapid<br />

bus service from Penrith, Liverpool and Campbelltown<br />

which will help shift the necessary workforce.<br />

Mr Millett says the airport will contribute towards<br />

the creation of 28,000 direct and indirect jobs within<br />

five years of operation.<br />

“Air freight at Western Sydney International will<br />

be an important part of creating jobs and business<br />

opportunities for western Sydney,’ Mr Millettt says.<br />

“The airport will open with an air freight facility<br />

that will grow with demand in stages and over<br />

decades, so it continues to support businesses to<br />

grow by becoming exporters and to be a gateway into<br />

Sydney for the goods each of us buy in shops and<br />

online every day.”<br />

Western Sydney Airport<br />

AIRPORT ACCESS<br />

Mr Millett says the airport’s freight precinct is set to<br />

have dedicated road access off the Northern Road,<br />

separating heavy vehicles from passenger traffic, which<br />

will enter the airport from the M12 on the opposite<br />

side of the site.<br />

Graham Millett (front second left) with logistics industry leaders who are<br />

working with WSA to design the airport’s freight precinct<br />

thedcn.com.au <strong>December</strong> <strong>2019</strong> 45


WORKPLACE HEALTH & SAFETY<br />

Trudie N’Dresanei, finance manager (left) and<br />

Anna Ingip, human resources manager, Pacific Towing<br />

Neil Papenfus, general manager,<br />

Pacific Towing<br />

Pacific Towing shows leadership in safety<br />

As part of its culture of rewarding safety,<br />

Papua New Guinea-based Pacific Towing,<br />

is now focusing on ensuring the safety of<br />

women and protecting its investment in<br />

gender equality. By Paula Wallace<br />

Pacific Towing will soon introduce an innovative workplace<br />

safety program aimed specifically at women that it believes will<br />

improve on the company’s already impressive safety record.<br />

The company draws upon 42 years of maritime safety<br />

experience and is now more than three years lost-time-injury<br />

free. According to general manager Neil Papenfus, the company has<br />

steadily improved its safety performance, particularly during the<br />

past five years.<br />

“At PacTow we’re always challenging our staff to do things better<br />

and this includes safety,” says Mr Papenfus.<br />

“Our two latest safety initiatives are indicative of this drive for<br />

continuous improvement. Our women’s workplace safety program<br />

is also very much in accord with our broader gender equality<br />

program and is an initiative that further positions us as the region’s<br />

maritime employer of choice for women.”<br />

PacTow operates in marine environments throughout<br />

Oceania and South East Asia providing high-risk services such as<br />

commercial diving, oil and chemical spill prevention and response,<br />

salvage and emergency response.<br />

MAXIMISING SAFETY FOR WOMEN<br />

PacTow’s ‘Gender Smart Safety’ program will be implemented in<br />

January 2020. A resource developed by Papua New Guinea’s Business<br />

Coalition for Women, the program was piloted by Oil Search, St<br />

Barbara’s Simberi operation and New Britain Palm Oil Ltd.<br />

Gender Smart Safety is based on the premise that women<br />

experience different workplace safety issues to men. As such, the<br />

program requires women be much more involved in workplace<br />

safety, for example in hazard identification, risk assessment and<br />

risk mitigation. The program also involves women in decisionmaking<br />

and the overall safety management function.<br />

The training involves teaching a group of employees how to<br />

conduct a women’s workplace safety audit. The aim is to ensure the<br />

company can identify any safety concerns that might affect women<br />

specifically. Once these concerns are identified suitable strategies to<br />

eliminate or minimise these concerns can be implemented.<br />

Although the focus of the program is on maximising the<br />

workplace safety of women, feedback from pilot companies<br />

reveals it improves the safety of all employees – women and men<br />

alike. Importantly, many of the recommendations for safety<br />

improvements are relatively simple and low cost.<br />

As one senior manager reports, “our Gender Smart Safety audits<br />

revealed some really ‘low hanging fruit’. Things like allowing<br />

female staff to wear trousers rather than skirts and having ‘women<br />

only’ designated seats at the front of our buses made a huge<br />

difference to our female staff’s safety”.<br />

Workplace safety, especially in the maritime and resources<br />

sectors, has long been a function largely managed by men and<br />

performed by men for predominantly male workforces. As such the<br />

specific safety requirements of women have often gone unnoticed.<br />

“A lot of women’s workplace safety concerns are being<br />

overlooked, like poorly fitting PPE, inadequate lighting, machinery<br />

operating dimensions and mechanisms that don’t accommodate<br />

generally smaller and less muscular female bodies, as well as<br />

working with chemicals when you’re pregnant or breastfeeding,”<br />

PacTow’s human resources manager Anna Ingip says.<br />

Mr Papenfus was “deeply concerned and genuinely appalled”<br />

to find out that despite a sophisticated safety management system<br />

of international standard, as well as a significant and long-term<br />

Pacific Towing<br />

46 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


Women will understandably pursue alternate employment<br />

options if their safety is not assured.<br />

Neil Papenfus, Pacific Towing<br />

investment in a range of gender equality initiatives, Pacific Towing’s<br />

female staff might not be as safe as their male counterparts.<br />

“Each and every one of our employees, whether they’re male or<br />

female, equally deserve to be safe at work,” Mr Papenfus says. “This<br />

is why we’re embarking on Gender Smart Safety in 2020.”<br />

Mr Papenfus is aware of the relationship between maximising<br />

the workplace safety of female staff and female employee retention.<br />

“Women will understandably pursue alternate employment<br />

options if their safety is not assured,” he says.<br />

“Maximising the workplace safety of female staff, whether it’s<br />

on vessels at sea, down on the wharves, or in the office is essential.<br />

We have heavily invested in programs to increase the number of<br />

women we employ and there is no way we’re going to jeopardise<br />

that investment.”<br />

One such program to increase the number of female staff is<br />

PacTow’s ‘Women in Maritime Scholarship Program’. A partnership<br />

with the Australian Government’s Australia Awards and the China<br />

Navigation Company, the program fast-tracks the careers of female<br />

deck and engine cadets.<br />

Twenty young PNG women are currently benefiting from the<br />

program, with additional cadetships on offer from 2020.<br />

STAFF SAFETY AWARDS PROGRAM<br />

The aim of PacTow’s Staff Safety Awards Program is to acknowledge<br />

and reward improvements, excellence and innovation in safety<br />

performance amongst employees.<br />

Safety manager Richard Hayka says that the awards will be “a<br />

‘carrot’ to further enhance PacTow’s safety vigilance and embed its<br />

safety culture”.<br />

“We already have mechanisms for rewarding exemplary safety<br />

behaviour but the Staff Safety Awards Program will formalise and<br />

improve upon this.”<br />

The program will see staff, both individuals and teams, rewarded<br />

throughout the year and will culminate in a Safety Awards<br />

Function. The most prestigious award will be given to PacTow’s<br />

Safety Champion (i.e. the person nominated by his/her bosses to<br />

have made the most outstanding contribution to workplace safety).<br />

A peer nominated award, the Safety Star, will also be presented.<br />

One of the more significant contributions that PacTow will be<br />

rewarding is safety through innovation.<br />

“We’re increasingly known for providing innovative and homegrown<br />

engineered solutions for clients and innovation is a big part<br />

of our competitive advantage as well as our organisational culture,”<br />

Mr Papenfus says.<br />

“It makes good sense therefore to incorporate innovation in<br />

to the safety awards. The company also anticipates rewarding<br />

behaviours that centre on improving workplace safety for women.”<br />

Examples of additional behaviours and achievements that<br />

can attract awards include having a perfect safety record<br />

over a given time period; a willingness to report unsafe work<br />

practices; demonstrating safety leadership; and championing<br />

the safety of others.<br />

Maritime cadets Lylellah Kunai (left) and Glenda Amu<br />

Female maritime cadets aim high<br />

From Papua New Guinea to Singapore, New Caledonia,<br />

Fiji and Australia, a group of women are following their<br />

dreams of becoming future deck officers in the maritime<br />

industry – and experiencing new cultures and professional<br />

challenges in the process.<br />

The young seafarers are undertaking a three-year<br />

maritime cadetship through a partnership between the<br />

Australian Government, China Navigation Company and<br />

Pacific Towing. In 2020, Consort Express Lines will also be<br />

joining the partnership.<br />

Glenda Amu and Lyllelah Kunai [pictured] are two of<br />

an overall cohort of 20 female cadets studying to qualify<br />

as officers of the watch deck and officers of the engine<br />

room, under the Australia Awards’ Maritime Scholarships<br />

Program for Women since 2018. The scholarships involve<br />

study in Papua New Guinea and sponsored international<br />

work experience at sea.<br />

Five of the women during a recent visit back to Port<br />

Moresby, could not contain their excitement about the<br />

ports they had visited and experiences they obtained in a<br />

recent six-month training block at sea.<br />

Between October 2018 and April <strong>2019</strong>, the trainees<br />

undertook practical seatime experience on board the MV<br />

Szechuen, gaining important skills and learning more about<br />

the international maritime industry – and themselves.<br />

“At first it was quite new to us, working with such a<br />

multi-national crew on board. So, we had to get used to<br />

working in a new environment,” Ms Kunai says.<br />

“But then as time went along, we became friends,” Ms<br />

Amu says.<br />

The awardees undertook practical elements of the<br />

cadetship training program, on board MV Szechuen,<br />

building on theoretical knowledge. Working alongside<br />

more senior officers and observing all aspects of the ship’s<br />

operations at sea and during port calls across the Asia-<br />

Pacific were highlights.<br />

“On a daily basis our cadet training officer went through<br />

with us as per the cadet training program. We covered<br />

topics including navigation, cargo watch and mooring,” one<br />

cadet says.<br />

Buoyed by their successes at sea, these seafarers<br />

hope to see more women follow them into the maritime<br />

sector, a field in which females remain notably underrepresented.<br />

“It’s a tough industry. But if we can do it, other women<br />

can too,” Ms Amu says.<br />

The awardees recently began a second phase of sea<br />

experience, this time with Pacific Towing, and are due to<br />

complete their cadetships in 2021.<br />

thedcn.com.au <strong>December</strong> <strong>2019</strong> 47


WORKPLACE HEALTH & SAFETY<br />

Sydney’s classy<br />

new simulators<br />

The training arm of the Australian<br />

Maritime College has unveiled new<br />

simulator technology at its Sydney<br />

campus, writes Paula Wallace<br />

Ports Australia chief executive Mike Gallacher was on hand to<br />

launch a new world-class maritime training facility at Darling<br />

Harbour by AMC Search in October.<br />

AMC Search is the training and consultancy arm of the<br />

Australian Maritime College, located in Tasmania.<br />

Training simulators like those at the new Maritime Simulations<br />

Unit provide familiarisation and emergency training that helps<br />

keep maritime workers and the goods they transport safe at sea.<br />

“I’m told by the experts in the industry, when you go through<br />

this facility and you apply for a job particularly overseas, the<br />

moment you say you’ve been through AMC it’s like ‘how quick can<br />

you start’,” Mr Gallacher said.<br />

“This facility here, a $500,000 investment, will pay for itself not<br />

just in terms of bringing people here but will pay for itself in terms<br />

of what it provides in the safety, certainty and training for people<br />

in this sector.”<br />

The AMC facility in New South Wales is linked to the National<br />

Centre for Maritime Simulation in Tasmania. It combines replica<br />

ship and vessel communications equipment with highly realistic<br />

ocean, coast and port backdrops for immersive maritime training<br />

from the security of dry land.<br />

“This facility is placed within two hours of 70% of the<br />

Australian population and... you have to agree with me that<br />

this facility is quite outstanding and the reputation of AMC is<br />

outstanding,” Mr Gallacher said.<br />

Sydney’s maritime bridge simulator<br />

AMC Search understands financial and time constraints<br />

can make it difficult for organisations to travel to<br />

Launceston in Tasmania for maritime simulation services<br />

at its world-class Centre for Maritime Simulation. That<br />

is why it has installed a maritime bridge simulator in its<br />

Sydney Study Centre for training and engineering services.<br />

Powered by Kongsberg Maritime Polaris software, the<br />

bridge simulator can deliver ship handling and navigation<br />

training to local manning agencies, port operators, tourism<br />

and shipping companies.<br />

The system can also be used for marine and offshore<br />

engineering projects including port infrastructure<br />

developments and channel design.<br />

The facility provides access to an extensive library of<br />

ship and port models developed by Kongsberg and inhouse<br />

at the AMC.<br />

BOOSTING SAFETY<br />

AMC principal Michael van Balen says the new facility will boost<br />

safety in the maritime industry by making simulated training<br />

accessible to more people.<br />

“Familiarisation with equipment and processes as well as the ability<br />

to practice emergency situations in a safe but realistic environment are<br />

key to keeping people safe at sea,” Mr van Balen says.<br />

“Our new Maritime Simulations Unit aims to enhance maritime<br />

safety across NSW and the rest of Australia by extending the reach<br />

of the pedagogical expertise and simulation software developed<br />

over decades at the AMC in Tasmania to organisations in the<br />

important maritime hub of Sydney.”<br />

The Maritime Simulations Unit includes the latest Kongsberg<br />

and Transas simulation solutions for training in vessel navigation,<br />

vessel traffic services (like air traffic control) and emergency and<br />

distress calls. It also provides access to an extensive library of vessel<br />

and port models developed in-house at AMC and previously only<br />

available in Tasmania.<br />

Sydney’s VTS and GMDSS simulators<br />

AMC Search is Australia’s only AMSA-accredited Vessel<br />

Traffic Services training provider, and its VTS simulator<br />

supports a highly realistic training environment for VTS<br />

operations and management.<br />

The VTS Centre of Excellence fully meets requirements<br />

for simulation as identified in the IALA Recommendations<br />

for VTS Training and supporting guidelines on the use of<br />

simulation training in VTS.<br />

Sydney also now boasts Australia’s only fully functional<br />

Global Maritime Distress and Safety System simulator.<br />

The simulator accurately imitates actual ship-to-ship<br />

communications and ship-to-shore stations using highly<br />

realistic simulated terrestrial and satellite communication<br />

systems, e.g. SART on radar.<br />

AMC<br />

48 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


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WORKPLACE HEALTH & SAFETY<br />

Safety culture demands a<br />

safety-minded workforce<br />

As children, safety messages are<br />

hammered home and we learn how to<br />

remain safe. But as adults, there is often<br />

a disconnect, writes Kelly Shaw*<br />

Despite a growing focus on safety, work-related injuries,<br />

illnesses, and death cost Australians more than $60bn a year.<br />

Safe Work Australia recently released key workplace health<br />

and safety statistics for <strong>2019</strong>, a national overview of workrelated<br />

fatalities, injuries, and disease. Despite an encouraging<br />

decline in the number of Australians killed in the workplace last<br />

year, 144 people unnecessarily lost their lives at work.<br />

“While these trends are encouraging, they are not a cause for<br />

celebration. Every work-related fatality is a tragedy, and there’s<br />

a lot more work to be done,” Safe Work Australia CEO, Michelle<br />

Baxter says.<br />

“We know that work-related fatalities, injuries, and disease have<br />

a devastating impact on workers and their families. Understanding<br />

the latest statistics can help identify ways to prevent these.”<br />

Workers in the supply chain are particularly vulnerable to<br />

accidents due to the labour-intensive nature of the work. More<br />

than a third of the people fatally injured in the workplace are<br />

machinery operators and drivers. Some 31% of these involve a<br />

vehicle collision.<br />

According to Safe Work Australia, the sector with the highest in<br />

workplace fatalities is transport, postal and warehousing with 38<br />

fatalities in 2018.<br />

environment and secondly, well-designed, healthy and safe work<br />

will allow workers in Australia to have more productive working<br />

lives,” Safe Work Australia says.<br />

THE RECRUITMENT SECTOR<br />

Some recruitment companies are taking a proactive approach to<br />

safety concerns before employment even begins.<br />

Erik Samuelson is the medical services manager at Labourhealth,<br />

which provides comprehensive pre-employment assessments by<br />

qualified medical professionals for workers sourced by Labourforce.<br />

Each division of The Navital Group - Labourforce, Labourhealth<br />

and Impex Personnel - prioritises safety.<br />

Labourforce has specialised in providing staffing solutions to<br />

the supply chain industry in Australia and New Zealand since its<br />

inception 20 years ago.<br />

Mr Samuelson explained the company’s dedication to<br />

worker welfare. “Our target market is predominantly any work<br />

environment where there’s a lot of labour-intensive duties. So<br />

manufacturing, construction, transport are the ones we focus<br />

on the most, mainly due to the fact that it’s very labour intensive<br />

and the likelihood of someone injuring themselves is quite high<br />

compared to a white-collar office environment.”<br />

One area where Labourforce seeks to differentiate itself<br />

from other recruitment companies is a strict drug and alcohol<br />

testing of all candidates put forward. The after-effects of outof-hours<br />

recreational drug use can leave people with difficulty<br />

concentrating, exhaustion, blurred vision and headaches. It can be<br />

The link between safety<br />

and productivity<br />

NATIONAL SUPPLY CHAIN FOCUS<br />

In August this year, Australian transport ministers approved<br />

the country’s first National Freight and Supply Chain Strategy.<br />

The strategy recognises that “Australia’s freight systems are the<br />

lifeblood of our economy and way of life” and sets industry goals<br />

and targets for 2024, designed to meet the unprecedented freight<br />

and supply chain demands expected in coming years.<br />

Deputy Prime Minister Michael McCormack estimates about<br />

163 tonnes of freight is delivered per person around the country<br />

each year. He says, “With our freight volumes expected to grow by<br />

more than a third by 2040 and online shopping growth at over 20% a<br />

year, we need to increase the productivity of our freight system”.<br />

The strategy targets four critical action areas, one of which is<br />

enabling improved supply chain efficiency. For the first time, the<br />

strategy will integrate the different transport modes, focusing on<br />

the entire supply chain rather than just looking at separate aspects<br />

in isolation.<br />

It is therefore perhaps timely that Safe Work Australia has<br />

identified supply chains as an action area in its Australian strategy.<br />

“Firstly, all workers, regardless of their occupation or how<br />

they are engaged, have the right to a healthy and safe working<br />

A healthy workforce that doesn’t use illicit drugs is<br />

more inclined to turn up to work on time and cause<br />

the employer fewer problems.<br />

Erik Samuelson, Labourhealth<br />

50 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


a just as problematic as being intoxicated on the job, according to<br />

the company, leading to serious safety risks surrounding employees<br />

operating vehicles or machinery.<br />

“Probably our main selling point is our pre-employment<br />

medicals so for individuals that you have coming on board, you can<br />

do a full medical, so you ascertain whether they have any existing<br />

injuries they’re going to be bringing into the work environment. Or<br />

whether they have any substance abuse issues,” Mr Samuelson says.<br />

“A healthy workforce that doesn’t use illicit drugs is more inclined to<br />

turn up to work on time and cause the employer fewer problems.”<br />

Once there is an issue with safety, it’s always a catalyst for<br />

change, according to Mr Samuelson.<br />

“Let’s say there’s an accident on site and the individual who<br />

caused the accident is found to be under the influence of drugs<br />

and or alcohol, then it’s usually a catalyst for that employer to<br />

implement a new drug and alcohol policy and start a random<br />

testing regime,” he says.<br />

SOUND BUSINESS PRACTICE<br />

The obvious benefit to reducing the number of accidents is saving<br />

lives but it also makes good business sense by avoiding productivity<br />

disruptions, costly injuries and absenteeism.<br />

And then there are the flow-on costs.<br />

A recent Allianz study on workers’ compensation claims found<br />

a growing number of injured workers falling victim to a secondary<br />

mental health condition as a result of the initial injury. The cost<br />

of the secondary psychological condition to business was on<br />

average four times more costly than the original claim itself.<br />

Of course, mental health concerns are not strictly predicated by<br />

physical injury. Flemming Hansen, general manager Asia Pacific at<br />

Labourforce says it’s a growing safety concern in the workplace.<br />

“We are coming across mental health issues more and more<br />

these days,” Mr Hansen says. “It’s anything from anxiety to panic<br />

attacks to stress, which is a growing concern. It’s not like breaking<br />

an arm, where six to eight weeks later, it’s back to normal. A<br />

mental health issue is likely to be much more complex.”<br />

Psychological hazards are treated the same as physical hazards<br />

under Australian work health and safety laws and businesses<br />

are urged to take note of Safe Work Australia’s four-step risk<br />

management process to avoid psychological injury and illness<br />

in the workplace. It’s also why business giants like Deloitte<br />

Australia are advocating psychosocial risk profiling as part of an<br />

overall workplace safety program.<br />

Mental health issues make up almost a quarter of the $60bn<br />

yearly costs of workplace deaths, illnesses, and injuries.<br />

Mr Hansen agrees the cost of not taking proper safety<br />

precautions is far greater to business in the long run.<br />

“Like any service or product, so long as the client is of the<br />

opinion that there’s a direct benefit to their organisation, then<br />

they can justify the additional cost. It’s in everybody’s interest that<br />

everyone comes home safe, there’s no doubt about that.”<br />

* Kelly Shaw is writing on behalf of human capital management company,<br />

Navital Group<br />

Iam Anupong<br />

The relationship between workplace safety and productivity<br />

was highlighted at the Supply Chain Safety Summit, held<br />

in September in Sydney – jointly hosted by the Australian<br />

Logistics Council and the Australian Trucking Association. It’s<br />

an issue likely to receive more attention as the trend towards<br />

outsourcing places a greater demand on our supply chains -<br />

increasing concern relating to workplace safety.<br />

Through a series of panel discussions and interactive<br />

workshops, Summit participants identified areas where<br />

government, regulators and the industry itself can continue to<br />

improve. These included:<br />

Rethinking the bureaucratic practices that are increasingly<br />

being used to define safety management<br />

Some within the industry are finding safety documentation<br />

increasingly complex and time-consuming to complete. The<br />

focus needs to return to identifying and managing actual risks,<br />

rather than completing paperwork.<br />

Stepping up efforts to reduce duplication throughout the<br />

auditing system for heavy vehicle safety<br />

This includes working to develop a set of common audit<br />

standards and standard auditing qualifications, so that there<br />

is industry confidence about the quality of audits and the<br />

quality of auditors.<br />

Countering the ‘tick and flick’ culture in safety management<br />

There is little research indicating that forms and checklists<br />

are greatly effective in addressing safety risks. We need to<br />

transition from measuring activity to measuring outcomes.<br />

Clarifying the roles of regulators in safety<br />

Some industry participants are finding it difficult to<br />

understand the demarcation of responsibilities between the<br />

National Heavy Vehicle Regulator and various state-based<br />

work health and safety agencies in the regulation of safety.<br />

Mental health is everyone’s business<br />

Industry needs to continue its efforts to ‘normalise’ discussion<br />

about mental health in the workplace and ensure jobs are<br />

designed to minimise risks to mental health. Industry should<br />

be supported in building mental health awareness into<br />

workforce training modules.<br />

Further support is needed to address alcohol and drug<br />

related issues<br />

There is a clear relationship between mental health issues<br />

and substance abuse in the workplace. Governments should<br />

support industry to develop specific initiatives that will allow<br />

organisations to respond effectively to alcohol and drug<br />

misuse, and ensure those affected get support they need.<br />

First aid training is vital<br />

Not all incidents occur in populated areas, or locations to which<br />

first responders have ready access. All industry participants<br />

should be supported to ensure they are trained in first aid –<br />

and to ensure their first aid qualifications remain up to date.<br />

Advances in technology should be embraced within safety<br />

management<br />

This includes promoting the collection of data through<br />

telematics to manage safety risks, taking advantage of apps<br />

that can help track and support those dealing with mental<br />

health challenges, and embracing the use of technology<br />

such as virtual reality to enhance the quality of workplace<br />

safety training.<br />

thedcn.com.au <strong>December</strong> <strong>2019</strong> 51


MARITIME LAW<br />

Bills of lading and complexities<br />

Lost bills of lading have the potential to cause significant exposures<br />

if handled incorrectly, writes Mike Yarwood<br />

IN MARITIME TRADE, THE ORIGINAL<br />

bill of lading effectively represents the<br />

cargo itself. At its simplest, the shipper<br />

receives the bill from the carrier, and<br />

transfers it to the consignee in return for<br />

payment for the goods.<br />

‘Negotiable’ bills may be transferred<br />

between entities for payment, together with<br />

the right to receive the goods, while the<br />

goods are in transit.<br />

The consignee or transferee hands the<br />

bill of lading to the carrier as evidence<br />

of the right to collect the goods and for<br />

cancellation.<br />

Equally, a bank may have an interest in<br />

the cargo, under a letter of credit, holding<br />

the original bill of lading until the debt is<br />

satisfied. In this context, the bill of lading<br />

represents the bank’s security for that debt.<br />

This also serves to illustrate the care<br />

required; release of goods without an<br />

original bill of lading can lead to financial<br />

liabilities to entities other than the direct<br />

contracting parties.<br />

A LOST BILL<br />

In the case of a lost bill, shippers or alleged<br />

transferees of the original may seek to press<br />

the NVOCC for a duplicate.<br />

Anybody who is holding an original<br />

bill of lading acquired in good faith can<br />

claim delivery; where two sets of bills exist<br />

there is risk of two entities with apparently<br />

equally valid claims, demanding delivery<br />

of the cargo. Additionally, if the shipper<br />

has not been paid he retains the right to<br />

dispose of the cargo provided that person is<br />

in possession of the original bill.<br />

As a matter of law, there is no exception<br />

to the simple working rule that delivery<br />

without production of bill of lading is at<br />

the NVOCC’s own risk. You are not bound<br />

to deliver cargo to any person other than<br />

the lawful holder of the original bill, unless<br />

a court so orders.<br />

Where a bill is absent and the importer<br />

is demanding delivery, a recommended<br />

solution is to require a bank guarantee (or a<br />

company letter of indemnity countersigned<br />

by a bank) in your favour.<br />

POTENTIAL EXPOSURES<br />

The whole question of the delivery of cargo<br />

without production of the corresponding<br />

original bill of lading, whether lost or<br />

otherwise, is fraught with potential<br />

exposures for the NVOCC or other issuer.<br />

No matter how strong or important your<br />

commercial relationship may be, simply do<br />

not accept promises or bow to pressure.<br />

The law will support you if you refuse to<br />

deliver until a valid bill of lading has been<br />

surrendered.<br />

As the bill of lading is a document of<br />

title, a person presenting it to the carrier<br />

or its agent is ostensibly entitled to collect<br />

the goods and the carrier cannot refuse to<br />

deliver the goods to that person.<br />

If someone claiming to be the receiver<br />

cannot produce the bill, what evidence is<br />

there that they are entitled to the goods?<br />

PRESSURE POINTS<br />

There are innumerable circumstances<br />

which may lead to a request to release<br />

cargo without the production of the<br />

original bill(s).<br />

A sale contract may have collapsed and<br />

the seller may want to sell to someone else.<br />

The consignee may be facing cash flow<br />

issues or have a financial dispute with<br />

the shipper.<br />

In extreme circumstances, the supposed<br />

receiver’s intention may be to steal the cargo<br />

and the sale proceeds, while the seller or the<br />

Mike Yarwood, claims executive, TT Club<br />

bank still retains the original documents.<br />

As the original bills represent surety for<br />

the purchase price, if the carrier hands the<br />

goods over to an unauthorised party who<br />

does not hold the original, that person is<br />

effectively denying the legitimate holder his<br />

right to collect the goods.<br />

If the receiving agent asks for authority<br />

to release the cargo to a consignee who<br />

cannot present an original bill of lading, it<br />

is recommended that you consult your legal<br />

or insurance wadvisors in order to obtain<br />

the full indemnity before entertaining any<br />

such request.<br />

HELPFUL GUIDELINES TO REMEMBER<br />

• Under no circumstances accept a ‘guarantee’ signed by the importer alone.<br />

• Implement explicit and adequate training for staff, whereby only a designated<br />

senior manager has the authority to approve requests for irregular releases.<br />

• Ensure you collect any charges due to you before releasing goods.<br />

• Do not let any debate or argument about such costs blind you to the absence of<br />

the bill of lading.<br />

• Do not succumb to any commercial pressure to release goods without the<br />

appropriate documents.<br />

• Under no circumstances accept faxed or photocopied bills of lading or guarantees.<br />

• Only act upon receipt of original documents.<br />

TT Club<br />

52 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


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safe, secure and<br />

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Port Authority cutter crew<br />

Port Botany, New South Wales


TRADE LAW<br />

Annual gathering<br />

facilitates trade<br />

Andrew Hudson offers a perspective on the themes of the National Conference<br />

of the Customs Brokers and Forwarders Council Of Australia<br />

I HAVE BEEN IN THE FORTUNATE<br />

more deeply at significant issues likely to<br />

As between all parties in the supply<br />

position of being involved with the<br />

affect industry and trade into the future as<br />

chain, whether public or private there is an<br />

Customs Brokers and Forwarders Council<br />

well as drawing on past experiences.<br />

understanding that as trade flows continue<br />

of Australia for several years. That has<br />

The CBFCA enlists relevant speakers<br />

to rise, there will need to be improvements<br />

encompassed a wider variety of tasks than<br />

across a two-day program with the first day<br />

both in modernising and facilitating trade<br />

merely providing legal advice in an office.<br />

given over to government, its regulatory<br />

both here and overseas, to ensure the<br />

It has involved working with industry to<br />

agencies and policy issues and the second<br />

trade moves at expected speeds without<br />

manage the botched delivery of the ICS for<br />

day addressing more operational issues. Of<br />

compromise to compliance, revenue<br />

imports in 2005, through to asbestos and<br />

course there is also time for networking<br />

protection or security and without undue<br />

issues related to the brown marmorated<br />

with others in attendance as well as<br />

increases in expenditure by government<br />

stink bug. I have helped develop and deliver<br />

formal and informal drinks and dinners<br />

and its agencies. This requires the adoption<br />

education and training for CBFCA members<br />

including the gala dinner at which the<br />

of new and assured technology and changes<br />

around legal issues, new legislation and free<br />

CBFCA recognises contributions to its<br />

to procedures and practices by all parties.<br />

trade agreements (including more recently<br />

success with state and national awards for<br />

continuing professional development),<br />

members and students.<br />

THE ROLE OF GOVERNMENT<br />

working with government and its agencies<br />

There is a clear recognition by<br />

to represent the interests of the CBFCA and<br />

HAPPY BIRTHDAY<br />

government and its agencies that it<br />

its members in forums such as the National<br />

The venue for the National has shifted<br />

cannot make these changes on its own<br />

Committee on Trade Facilitation and the<br />

to different places around the country<br />

and good ideas and outcomes come<br />

International Trade Remedies Forum.<br />

and even overseas with the most recent<br />

equally from those in the private supply<br />

iteration being held at Crown Promenade<br />

chain, which underpins much of the work<br />

THE ROLE OF STATE CONVENTIONS<br />

in Melbourne recognising the 115th<br />

of the NCTF and its sub-committees.<br />

This range of involvement has also led<br />

birthday of the CBFCA stretching from its<br />

That will also require an evolution in<br />

to many speaking engagements whether<br />

origins in earlier associations.<br />

the relationship between government,<br />

overseas or locally and delivery of member<br />

The main theme of this year’s National<br />

its agencies and those in the private<br />

legal forums around Australia twice a year<br />

was The Changing Face of International Trade<br />

supply chain to ensure trusted parties<br />

for CBFCA members. There also have been<br />

and across the two days, speakers from<br />

secure a “light touch at the border” with<br />

webinars and the CBFCA State Conventions<br />

government, its agencies and the private<br />

intervention reserved for those who are<br />

as well as involvement at the centrepiece<br />

sector provided their views on the future<br />

recklessly or deliberately non-compliant.<br />

CBFCA National Conference which takes<br />

shape of industry and regulation. The<br />

The keynote speaker on the first day was<br />

place towards the end of each year.<br />

choice of the theme was deliberate, being<br />

Dr Bradley Armstrong PSM, the leader of<br />

The “National” has always represented<br />

a chance both to address current pressing<br />

issues affecting industry but also to look<br />

aimed at informing and helping industry<br />

prepare to engage in the challenge of the<br />

future supply chain.<br />

the new Customs Group within the ABF<br />

as well as being chair of the NCTF. Dr<br />

Armstrong provided more details on the<br />

Sirtravelalot<br />

54 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


Ian Ackerman<br />

Andrew Hudson, partner, Rigby Cooke Lawyers<br />

proposed operation of the Customs Group<br />

and the intended future path for the ABF<br />

as it sought to manage expected significant<br />

increases in trade without similar increases<br />

in resources, relying on developments in<br />

trade modernisation and facilitation.<br />

COMPLIANCE FOCUS<br />

The ABF was also represented by Craig<br />

Palmer, the regional director for Victoria<br />

and Tasmania who provided an update on<br />

the compliance focus and actions of the<br />

ABF both currently and into the future.<br />

The audience also received a briefing on<br />

aviation and marine security initiatives<br />

from the ABF including the work around<br />

scanning of international air cargo which<br />

will lead to new scanning requirements for<br />

domestic air cargo starting in 2020.<br />

Each of these speakers spoke of the<br />

importance of the “trusted participant”<br />

programs of the Australian Trusted<br />

Trader Programme and the Known<br />

Consignor program.<br />

The significant contribution of the ABF<br />

was then rounded out by Steve Moore,<br />

the director from Customs Licensing,<br />

Trusted Trader and Trade Services Branch,<br />

Customs Group at the ABF. He has been<br />

involved with the service providers in the<br />

private supply chain for many years from<br />

the technology aspect but is now directly<br />

involved with the ABF’s licensing activities<br />

including that of licensed customs brokers.<br />

Mr Moore provided some interesting<br />

detail on changes to the numbers of licensed<br />

customs brokers with numbers experiencing<br />

an initial drop following the introduction<br />

of the continuing professional development<br />

and other newer licensing obligations. He<br />

also provided insight on the expectations of<br />

the ABF from those who it licences.<br />

In a related compliance and enforcement<br />

area, Chris Ellway from the Victoria Police<br />

provided an update on the work of the<br />

Trident Task Force guarding against the<br />

influence of organised crime in the supply<br />

chain and how those in the private supply<br />

chain can assist the work of the police as<br />

they have for some time.<br />

RELEVANT AGENCIES<br />

Other relevant agencies were represented<br />

including DFAT (providing updates on<br />

our FTA agenda), the Department of<br />

Agriculture (with Dean Merrilees advising<br />

on BMSB and other threats along with how<br />

technological advances assist the work of<br />

industry) and the ACCC which focused on<br />

concerns of industry including regulation<br />

of unfair terms and conditions of<br />

contracts, possible restrictions on landside<br />

As trade flows continue to rise, there will need to be<br />

improvements both in modernising and facilitating<br />

trade both here and overseas.<br />

operators at ports and airports and the<br />

ACCC’s role in regulating those operators.<br />

Speakers from Freight Victoria,<br />

Melbourne Airport and the Port of<br />

Melbourne also addressed related issues of<br />

development of additional assets to assist<br />

the movement of goods through the supply<br />

chain and the basis on which they would be<br />

provided and regulated.<br />

Peter Kosmina from the MisterMina<br />

Group also spoke about the importance of<br />

technological developments in the private<br />

supply chain with which he has been<br />

involved for many years having been a<br />

founder of 1-Stop.<br />

CORPORATE SOCIAL RESPONSIBILITY<br />

I was fortunate enough to be asked to speak<br />

at the National. My topic touched on the<br />

elements of corporate social responsibility<br />

which have found their way into reporting<br />

obligations on those in the private supply<br />

chain (asbestos and illegal logging for<br />

example), those which are likely to impose<br />

new reporting obligations (combustible<br />

cladding, modern slavery and protection<br />

of human rights), the nature of those<br />

reporting obligations and the changes to<br />

business practices which would be required.<br />

I also reiterated my plea that there is<br />

no place for strict liability obligations on<br />

licensed customs brokers for inadvertent<br />

errors when completing Community<br />

Protection Questions in Full Import<br />

Declarations as those providers are in no<br />

position to be able to comprehensively<br />

verify on those issues. My position is that<br />

licensed customs brokers should have<br />

realistic and achievable expectations on<br />

their own due diligence but the main focus<br />

should be on the suppliers, importers<br />

and their customers who source, supply,<br />

purchase and use the items of concern.<br />

Undue pressure should not be placed on<br />

licensed customs brokers, merely because<br />

they happen to be the licensed party<br />

completing those declarations.<br />

NEED FOR LEADERSHIP<br />

The National was not solely focused on<br />

trade trends but gave important attention<br />

to other areas with speakers addressing<br />

the challenge of supporting mental health<br />

and providing the most supportive and<br />

effective workplace.<br />

The National was, I believe, another<br />

success with congratulations to those at<br />

the CBFCA who undertook long hours of<br />

preparation and planning to deliver such as<br />

outstanding event. Yet again the National<br />

served the interests and expectations of<br />

members and others in the supply chain<br />

who are tasked to the safe and prompt<br />

delivery of our air and sea cargo.<br />

thedcn.com.au <strong>December</strong> <strong>2019</strong> 55


PORT SUSTAINABILITY<br />

Exploring the ‘green’ agenda<br />

for ports<br />

Australian specialists played an important part in this year’s World Greenport<br />

Congress in Norway, writes Paula Wallace<br />

MORE THAN 230 PARTICIPANTS<br />

Of course, the topic of new limits on<br />

from across the globe travelled to the<br />

sulphur emissions was also discussed<br />

Norwegian city of Oslo for the <strong>2019</strong> World<br />

along with models for developing port<br />

Greenport Congress in October.<br />

sustainability strategies, UN Sustainable<br />

Hosted by the Port of Oslo, the event<br />

Development Goals, and the implications<br />

once again brought together port-sector<br />

of Brexit on ports in the European region.<br />

leaders and representatives to collaborate<br />

The Port of Vancouver presented an<br />

on a range of contemporary issues facing<br />

interesting case study on measuring and<br />

port managers around the world.<br />

reducing underwater vessel noise, and<br />

This year the ‘cruise’ congress was also<br />

there were numerous contributions on<br />

run concurrently with the ‘port’ themes<br />

alternative energy sources for plant and<br />

which enabled cross collaboration.<br />

equipment, renewable fuels in shipping and<br />

For the third time, Renee Hovey<br />

air quality measurement.<br />

and Jason Sprott from Australian port<br />

planning, environmental management<br />

WORLD-CLASS PROJECT METHODOLOGY<br />

and sustainability advisory firm Sprott<br />

The workshop concept was developed by<br />

Planning & Environment attended the<br />

Ms Hovey in collaboration with Dr Chris<br />

Congress, having been invited to present at<br />

Wooldridge from the School of Earth and<br />

previous events in Amsterdam in 2017 and<br />

Baltimore in 2018.<br />

Ocean Sciences at Cardiff University.<br />

The session included presentations from<br />

Renee Hovey presenting the workshop at the<br />

World Greenport Congress<br />

“We continue to value the investment<br />

Charles Haine from WSP, Michel deVos<br />

in this forum which brings together<br />

from Napier Port and Henrik Ravandal<br />

interested in investing in the port sector,”<br />

port professionals from across the globe<br />

from Norway-based Sustainable Energy<br />

Ms Hovey says.<br />

interested in transitioning their ports<br />

consultancy Sweco.<br />

“Clearly, investors are understandably<br />

in a number of key themes including<br />

The workshop focused on the four steps<br />

wanting to ensure ports are focusing on<br />

environment, business efficiency and<br />

of the Sprott Planning & Environment<br />

‘the most important issues’ in terms of their<br />

viability, port resilience, renewable energy,<br />

strategy development methodology<br />

overall port strategy and direction, and our<br />

climate change, alternative fuels, new<br />

including gap analysis, materiality<br />

process allows this,” Mr Sprott says.<br />

technology and stakeholder engagement,”<br />

assessment, strategy development and<br />

Mr Sprott says.<br />

forward leadership commitments to<br />

OTHER HIGHLIGHTS<br />

communication, review and reporting.<br />

The Congress also included a waterside<br />

HOT TOPICS<br />

“It was pleasing to see a number of ports<br />

port tour on the Port of Oslo’s electric<br />

Topics at this years’ Congress<br />

participating in the workshop with many<br />

ferry, which allowed participants to gain an<br />

were extensive and Renee Hovey<br />

acknowledging the importance of a staged<br />

insight into operations in Oslo despite the<br />

co-facilitated a workshop on ‘Developing<br />

approach to robust strategy development,”<br />

cold conditions.<br />

Sustainability Strategies’, using the<br />

Ms Hovey says.<br />

The location for the 2020 Greenport<br />

project methodology developed by the<br />

The workshop also focused on the<br />

Congress is yet to be announced but will<br />

Sprott Planning & Environment team<br />

importance of considering the United<br />

be sure to continue to attract great interest<br />

which has now been applied in both<br />

Nations Sustainable Development Goals<br />

from the port and maritime sector.<br />

Australia and New Zealand.<br />

within the strategy development work.<br />

“Whilst the topics were of great<br />

The Congress covered areas as diverse<br />

“Charles Haine from WSP highlighted<br />

technical interest, delegates reinforced<br />

as zero emissions technology/emissions<br />

the importance of external and internal<br />

that the real strength of the Congress is<br />

reduction, to new UNESCO regulations<br />

stakeholder involvement and materiality<br />

the opportunity to collaborate with port<br />

regarding World Heritage listed sites,<br />

onshore power technology, LNG bunkering<br />

and the use of circular economy concepts<br />

across the whole of port precincts.<br />

assessments which is a key foundation<br />

of strategy development in our view –<br />

and one being focused on by a range<br />

of investors and private equity firms<br />

professionals and friends from around<br />

the globe – all facing similar issues and<br />

all benefiting from shared experiences,”<br />

Mr Sprott says.<br />

Image supplied<br />

56 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


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INDUSTRY OPINION<br />

Consolidation in containers –<br />

what do customers really think?<br />

Vinh Thai from RMIT University and maritime and logistics analyst Devinder Grewal<br />

discuss a study of shipping line consolidation that has sought to shed light on the<br />

impact upon customers<br />

SHIPPING IS THE BACKBONE OF THE<br />

world economy, facilitating international<br />

trade and globalisation with more than<br />

90% of trade by volume being transported<br />

by sea, according to the International<br />

Chamber of Shipping. Container shipping<br />

maintains a plethora of inter-relationships<br />

with both suppliers and customers to<br />

deliver a reliable service. The wide variety<br />

of intertwined services gives rise to the<br />

importance of integrated performance<br />

quality throughout the supply chain in<br />

container shipping.<br />

HIGH VALUE BUT LOW VOLUME<br />

Containerships carry various types of<br />

cargo, usually of high value but low<br />

volume. Transport requirements, therefore,<br />

place more emphasis on factors such as<br />

timeliness, reliability and connectivity<br />

rather than only low freight rates. In other<br />

words, customers using container shipping<br />

tend to be more concerned with quality<br />

aspects of the service.<br />

Factors that influence service quality in this<br />

sector include:<br />

Vinh Thai, associate professor in the School of<br />

Business, IT and Logistics, RMIT<br />

physical resources (e.g. ships and containers);<br />

• management effectiveness (e.g. shipping<br />

line’s efficiency);<br />

• processes including interaction with<br />

shipping line’s staff;<br />

service outcomes (e.g. time and cost);<br />

• image (e.g. shipping line’s reputation);<br />

and<br />

• social responsibility (e.g. shipping line’s<br />

safety and environmental care).<br />

HORIZONTAL INTEGRATION<br />

Horizontal integration in container<br />

shipping, in the form of operational<br />

and service consolidation, has become<br />

widespread in the past few years, especially<br />

during the period of 2016–2018. This is<br />

happening not only in the main routes but<br />

also the regional/feeder routes.<br />

While the top 10 shipping lines deployed<br />

45% of container carrying capacity in 1996,<br />

the figure in 2017 stood at 70%.<br />

The table shows the top eight lines<br />

in the largest three alliances currently<br />

control about 80% aggregate global market<br />

share. In addition, according to UNCTAD,<br />

the number of container shipping lines<br />

providing services per country has declined<br />

by 38% on average during the period of<br />

2004–2018.<br />

IMPACT UPON CUSTOMERS<br />

While consolidation can reduce<br />

overcapacity in the market, there have<br />

been concerns, raised by shipper councils<br />

globally such as the European Shippers’<br />

Council and the Global Shippers’ Forum,<br />

that such consolidation will negatively<br />

affect container shipping lines’ customers.<br />

McKinsey & Company in 2017<br />

discovered from its extensive engagement<br />

with shippers that a remarkable amount<br />

of dissatisfaction exists, in which shippers<br />

found a “widening gap” between the service<br />

they want to receive and the one they<br />

actually receive, coupled with decreasing<br />

schedule reliability.<br />

Similarly, the International Transport<br />

Forum reported in 2018, citing results<br />

from a Drewry study that transit times and<br />

reliability of booking were considered to<br />

have deteriorated since 2016, and that over<br />

60% of respondents in the survey noticed<br />

deterioration in the range of different<br />

carriers available and over 40% observed a<br />

decreasing availability of different services.<br />

It was also observed in these reports that<br />

alliances can be generally associated with<br />

less choice, less service differentiation and<br />

less service quality for shippers.<br />

THE AUSTRALIAN CONTEXT<br />

There has been no research in Australia<br />

to examine how container shipping<br />

consolidation may affect service quality<br />

and its resulting impact on their customer<br />

satisfaction levels.<br />

Maritime transport is critical to the<br />

country in that nearly 99% of Australia’s<br />

foreign trade in terms of volume go<br />

through our ports, according to the<br />

Department of Infrastructure, Transport,<br />

Cities and Regional Development figures<br />

of <strong>2019</strong>.<br />

To address this shortcoming, a<br />

qualitative study comprising in-depth<br />

semi-structured interviews of senior<br />

managers in freight forwarding/logistics<br />

firms who are in charge of operational<br />

transactions with container shipping lines,<br />

and representatives of peak bodies, was<br />

conducted earlier this year.<br />

KEY STUDY FINDINGS<br />

Arrangements such as slot sharing<br />

may limit the access of customers to<br />

shipping services as the capacity of<br />

the shipping lines is now spread across<br />

other alliance members.<br />

A 3PL service provider illustrated this<br />

with the comment, “Space is a main issue.<br />

If they are not consolidating with other<br />

lines, perhaps 100% of the space of that<br />

vessel is for our customers, but now they<br />

Images supplied<br />

58 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


Devinder Grewal, consultant, AISTL<br />

are sharing with others, so some get more<br />

options while others will lose slots”.<br />

It was also shown that freight rates<br />

may become more “stabilised” since larger<br />

but fewer shipping lines are now in the<br />

same alliance servicing specific shipping<br />

routes. Indeed, even when this is not legally<br />

permissible, alliances can influence pricing<br />

in terms of common surcharges applied in<br />

shipping routes and port areas within the<br />

alliance’s networks and service areas.<br />

Meanwhile customers’ choice of<br />

shipping lines as well as negotiating<br />

power are both curtailed when dealing<br />

with alliances since there is reduced<br />

competition between shipping lines. This<br />

impacts negatively on service selection<br />

and risk management for customers as the<br />

differentiation between various shipping<br />

lines has been fading out.<br />

The case of the Al Riffa and San Filipe<br />

collision and subsequent fire on both<br />

ships in November 2014 in Port Klang<br />

illustrates the depth of this concern. Only<br />

15 containers of one product had been sent<br />

with one of the involved vessel operators<br />

by the manufacturer. It turned out that 98<br />

containers of the manufacturer’s product<br />

were on the same vessel, although booked<br />

with different carriers.<br />

SERVICE QUALITY IMPACT<br />

Negative impacts on service quality are felt<br />

in such areas as resources as customers may<br />

have less choice of ships and containers.<br />

Service outcomes are now increasingly<br />

becoming commodities and not much<br />

service customisation and differentiation<br />

can be provided due to the structure of<br />

alliances. There is also possible longer<br />

delivery time as fewer but larger shipping<br />

lines join lesser number of alliances,<br />

together with the deployment of bigger<br />

ships, meaning containers may have to<br />

wait longer so that the necessary load level<br />

can be achieved. This is especially true in<br />

the case of Australia as the majority of<br />

containers destined to Australian ports are<br />

for local import and export demands. A<br />

3PL service provider commented, “When<br />

consolidating, the shipping lines instead<br />

of putting containers daily onto different<br />

vessels to spread them over Australia, it<br />

already annoys customers because the<br />

containers now spend one week longer than<br />

it should have to since they have to wait for<br />

each other”.<br />

LOSS OF THE “HUMAN TOUCH”<br />

The process aspect as a result of<br />

consolidation is the loss of “human<br />

touch” in doing business with shipping<br />

lines. This was pointed out by almost all<br />

interviewees. Since consolidation drives<br />

more efficient process through automation,<br />

often with less staff, customers who may<br />

ALLIANCE CARRIERS GLOBAL MARKET SHARE AGGREGATE SHARE<br />

2M<br />

Ocean Alliance<br />

THE Alliance<br />

Maersk 17.9%<br />

MSC 15.6%<br />

COSCO - OOCL 12.7%<br />

CMA CGM 11.5%<br />

Evergreen 5.6%<br />

Hapag-Lloyd 7.2%<br />

ONE 6.8%<br />

Yang Ming 2.7%<br />

FACT BOX<br />

THEMES OF<br />

CONSOLIDATION<br />

• Shippers found a gap between<br />

the service they want and the one<br />

they receive.<br />

•<br />

•<br />

Customers may have less choice<br />

of ships and containers.<br />

Customers who may have cargo<br />

issues cannot find someone to<br />

talk to.<br />

• Possible longer delivery time as<br />

fewer but larger shipping lines join<br />

lesser numbers of alliances.<br />

• Consolidation has given more<br />

negotiating power to lines and less<br />

to customers.<br />

McKinsey & Company in 2017 discovered from their<br />

extensive engagement with shippers that<br />

a remarkable amount of dissatisfaction exists.<br />

GLOBAL MARKET SHARE CONTROLLED BY THREE DOMINANT SHIPPING ALLIANCES<br />

33.5%<br />

29.8%<br />

16.7%<br />

have issues with their cargo cannot find<br />

someone in the shipping lines to talk to.<br />

When someone may be found, in many<br />

cases they are “very depressed, angry and<br />

grumpy”. This also leads to issues with<br />

the management of shipping lines which<br />

is vividly elaborated with the following<br />

comment: “Flexibility of shipping lines are<br />

limited because in some situations, their<br />

departments are far from the dock/port,<br />

which results in the fact that they don’t<br />

have experience to handle the problems.<br />

For example, their container load team is<br />

not at port, they are in Singapore”.<br />

FINAL THOUGHTS<br />

Consolidation has given more negotiating<br />

power to shipping lines and lessened<br />

it for customers. In addition, service<br />

outcomes have become commoditised<br />

and less customised to each customer’s<br />

expectations. This may be different for big<br />

logistics service providers or consolidators<br />

who have large cargo volumes, people<br />

and systems capability to integrate their<br />

processes with alliances but the small<br />

shipper’s voice has become smaller through<br />

consolidation in container shipping.<br />

thedcn.com.au <strong>December</strong> <strong>2019</strong> 59


INDUSTRY ANALYTICS<br />

Container volumes contract<br />

for the second time in a decade<br />

The Australian Competition & Consumer Commission has released its 2018-19<br />

monitoring report for container stevedoring. Here are some key excerpts<br />

A WEAKENING ECONOMY<br />

COMPETITION EVIDENT<br />

and since the third stevedores entered the<br />

dampened demand for stevedoring services<br />

Competition has resulted in further shifts<br />

industry at the east coast ports. Revenue<br />

in 2018–19, with growth rates far below<br />

in the stevedores’ shares of national lifts.<br />

per lift grew by 1.8% to $268.50.<br />

those reported in the previous year,<br />

Most notable was the share of lifts handled<br />

The industry generated $167m in revenue<br />

according to the Container stevedoring<br />

by DP World falling from 44.4% in 2017–18<br />

from infrastructure charges in 2018–19,<br />

monitoring report 2018–19.<br />

to just 39.1% in 2018–19. However, fellow<br />

an increase of 63% from 2017–18. After<br />

The number of lifts made by the<br />

incumbent stevedore Patrick fared much<br />

DP World’s decision to increase charges in<br />

international container stevedores fell for<br />

better during the year, with its share of<br />

Melbourne from around $49 to $85 from<br />

only the second time in the last decade. The<br />

national lifts increasing from 41.5% to<br />

1 January <strong>2019</strong>, Patrick and VICT followed<br />

stevedores reported 5.11m lifts in 2018–19,<br />

43.5%, after it reported having won several<br />

with increases of their own. Patrick now<br />

down 0.5% from the previous year. Lifts<br />

new contracts during the period.<br />

has the highest charges in Sydney ($77.50)<br />

of full containers fell by 4.9% while empty<br />

The dominance of the two largest<br />

and Brisbane ($71.50).<br />

containers increased by 14.6%.<br />

stevedores was diluted further in 2018–19.<br />

Industry volumes were slightly better<br />

The combined share of lifts by the two<br />

INDUSTRY-WIDE PROFITABILITY<br />

when measured on a TEU basis, as cargo<br />

firms represented 82.6% of national lifts,<br />

REMAINS LOW<br />

owners continued to increasingly adopt<br />

the lowest on record.<br />

Some industry profitability indicators fell<br />

40-foot containers instead of 20-foot<br />

After just two years of operations, VICT<br />

in 2018–19, continuing the trend reported<br />

containers. The container terminals reported<br />

has now established itself as an effective<br />

in recent years. Industry operating profit<br />

handling a combined 7.88m TEU in 2018–19.<br />

competitor in Melbourne. Its share of lifts<br />

fell by 4.7% to $81.3m and operating profit<br />

This represented growth of 0.2%, the second<br />

in Melbourne more than doubled to around<br />

margin fell slightly to 5.9%. While the<br />

lowest rate over the past ten years.<br />

15% after it won several shipping services<br />

industry’s return on tangible assets was<br />

The slowdown in container volume<br />

during the period. On the other hand,<br />

unchanged at 3.8%, this figure has fallen<br />

growth reflects weakening economic<br />

Hutchison’s share of total lifts in Brisbane<br />

from a high of 27.8% in 2011–12.<br />

activity in goods distribution industries<br />

and Sydney remained at 13%.<br />

While stevedores have had to face<br />

such as retail and manufacturing. In<br />

growing bargaining power of the shipping<br />

addition, the drought in eastern Australia<br />

HIGHER INFRASTRUCTURE CHARGES<br />

lines in recent years, the significant fall<br />

and floods in Queensland negatively<br />

Higher infrastructure charges helped<br />

in this latter figure also represents a<br />

impacted on volumes of various export<br />

commodities such as grain, hay and cotton.<br />

to drive growth in unit revenues for the<br />

stevedores for the first time since 2011–12<br />

much larger asset base due to the new<br />

container terminals in Brisbane, Sydney and<br />

Patrick<br />

60 <strong>December</strong> <strong>2019</strong><br />

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Patrick Terminal,<br />

Port Botany,<br />

Sydney<br />

Melbourne and, to a lesser extent, increased<br />

unit costs.<br />

While some industry-wide profitability<br />

measures have clearly declined, it is<br />

important to note that performance varies<br />

greatly by stevedore. In 2018–19, most<br />

stevedores reported much improved profits<br />

or reduced operating losses, while some<br />

stevedores’ profitability fell.<br />

PER LIFT REVENUE<br />

$266.1<br />

$34.2<br />

Quayside<br />

Landside and other<br />

$190.4<br />

$78.1<br />

PRODUCTIVITY INDICATORS<br />

Productivity of some Australian container<br />

ports now appears on-par with comparable<br />

international ports.<br />

Productivity at Australian ports has<br />

increased significantly since the late 1990s.<br />

In 2018–19, data provided by BITRE to the<br />

ACCC showed improved productivity levels<br />

on the quayside. All three key indicators of<br />

quayside productivity—crane rate, labour<br />

rate and ship rate—went up by more than<br />

5%. In particular, labour and ship rates are<br />

now at record highs.<br />

Melbourne was the best performing of<br />

the Australian ports.<br />

2009-10 2018-19<br />

RETURN ON TANGIBLE ASSETS<br />

27.8%<br />

18.4%<br />

3.8%<br />

2009-10 2018-19<br />

*Earnings before interest, tax and amortisation (EBITA) as a percentage of total revenue. ** Includes international container terminal<br />

volumes only. *** Containers per hour.<br />

LIFTS PER STEVEDORE**<br />

4.5% Patrick 2.2 million<br />

12.3% DP World 2.0 million<br />

0.8% Hutchison 0.3 million<br />

0.8% Flinders Adelaide 0.3 million<br />

147% VICT 0.3 million<br />

CONTAINER TERMINAL PRODUCTIVITY<br />

Ship rate***<br />

64.7<br />

8.3%<br />

REVENUES, COSTS AND PROFITS<br />

Crane rate***<br />

30.7<br />

5.3%<br />

TEU PER PORT**<br />

Adelaide<br />

5.3%<br />

Fremantle<br />

10%<br />

Brisbane<br />

16.6%<br />

Labour rate***<br />

51.4<br />

7.5%<br />

TOTAL REVENUE REVENUE PER LIFT COST PER LIFT PROFIT MARGIN*<br />

$1371m $268.5 $252.8 5.9%<br />

1.3% 1.8% 2.4% 0.5pp<br />

Sydney<br />

33.7%<br />

Melbourne<br />

34.3%<br />

Truck turnaround time (mins)<br />

29.3<br />

0.4<br />

thedcn.com.au <strong>December</strong> <strong>2019</strong> 61


OUT & ABOUT<br />

Sister Mary, Dom McCarron,<br />

Mark Malone and Michael<br />

Kelly at the Engage<br />

anniversary function<br />

Freight sector<br />

enjoys spring<br />

A NUMBER OF EVENTS IN SYDNEY AND MELBOURNE<br />

offered opportunities for people from the shipping and maritime<br />

sectors to come together and enjoy the warmer weather.<br />

High on the list was the annual Shipping Industry Golf<br />

Challenge held at the picturesque Mona Vale Golf Club. The<br />

event is a fundraiser for Westmead Children’s Hospital and the<br />

cumulative donation over the years is now close to $700,000.<br />

Also in Sydney, a first birthday celebration was held at Smoke<br />

Bar in Barangaroo House, recognising the first year of operations<br />

in Sydney for Engage Towage. The company’s CEO Mark Malone<br />

thanked guests for their support and Sister Mary from the Sydney<br />

Mission was presented with a cheque to support her work in<br />

supporting seafarers.<br />

Meanwhile in Melbourne, customs brokers gathered for the<br />

CBFCA National Convention at Crown Conference Centre. As well<br />

as the serious stuff, there was also plenty of time for networking<br />

and socialising and catching up with friends.<br />

Also in Melbourne, a lunch gathering took place for Baltic<br />

Exchange CEO Mark Jackson and head of Baltic Exchange Asia Su<br />

Ling Lu. The event was organised by Maritime Industry Australia<br />

and was held at Majella House on St Kilda Road, with guests<br />

defying brutally hot weather to enjoy the afternoon.<br />

Denis Bilston and Elvis Bernard<br />

at CBFCA National Convention<br />

John Farrelly<br />

and Brian<br />

Slater at<br />

CBFCA<br />

62 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


Paul Deacon and<br />

Carolyn Brush at<br />

CBFCA<br />

Robert Cherbakof and<br />

Peter Howden at CBFCA<br />

Robert Wallace<br />

and Tom<br />

Griffiths at<br />

CBFCA<br />

Susan Danks<br />

and Jamie<br />

Murray at<br />

CBFCA<br />

Dale Emmerton and Tayissa<br />

Popowicz in Melbourne to<br />

meet Baltic Exchange<br />

leadership<br />

Mark Malone, Rob Garrett and Dave Fethers at the Engage function<br />

The team from Wilson Lawyers enjoy the golf day<br />

The weather at Mona Vale could hardly have been better<br />

for the Shipping Industry Golf Challenge<br />

Image supplied<br />

thedcn.com.au <strong>December</strong> <strong>2019</strong> 63


MISSION TO SEAFARERS<br />

When tragedy strikes<br />

Following a recent tragedy on a passenger ship,<br />

a Mission to Seafarers’ chaplain went onboard<br />

to provide counselling and assistance<br />

IT WAS AROUND LUNCHTIME<br />

when I received a phone call about an<br />

emergency. The initial message was that<br />

someone onboard needed help, but I<br />

thought nothing much of it because I was<br />

about to visit ships elsewhere. The other<br />

chaplains were closer and they would be<br />

able to handle it. Well it turned out the<br />

first message was incomplete. There had<br />

been a death, and they wanted someone<br />

that afternoon to assist the crew for several<br />

days. I sensed there was a greater need and<br />

perhaps my counselling skills would be<br />

of value. The trip to the dock in an Uber<br />

was eventful when we passed an accident<br />

involving four vehicles. Almost as soon as<br />

I arrived onboard, I sensed a weight only<br />

his body. In such circumstances people<br />

are vulnerable to trauma and secondary<br />

trauma. The circumstances surrounding<br />

a death, especially suicide, can have an<br />

overwhelming effect. The majority of<br />

people will undergo temporary traumatic<br />

symptoms, but they only will be temporary.<br />

There is, however, a minority who, based on<br />

previously trauma, will be vulnerable for an<br />

extended period of time.<br />

COUNSELLING THE CREW<br />

My first job was to help the crew<br />

understand their reactions were normal.<br />

Feeling numb, not being able to believe this<br />

has really happened, sudden anger, sadness<br />

and guilt are normal reactions. Many who<br />

If we do not allow the grief to be processed,<br />

it will hurt us in the end.<br />

and I wondered about them. There was no<br />

time for a traditional wake, and someone<br />

told me they only get 10 hours off rather<br />

than a day off as a regular break. They work<br />

seven days a week.<br />

HOPES FOR THE FUTURE<br />

My hope is that the crew will be able to find<br />

space to process what they need to process.<br />

It is different for everyone. Some cultures<br />

have different ways of grieving and within<br />

those groups there is so much variation.<br />

But if we do not allow grief to be processed,<br />

it will hurt us in the end. The greater our<br />

love, the greater the grief and the more<br />

help we will need. We need to talk about<br />

the serious stuff, and we need someone<br />

to really listen. I was able to provide a<br />

listening ear and I hope the crew are able to<br />

find others who take the time to hear how<br />

much they cared about their friend.<br />

death can bring. This was not obvious to<br />

take their own lives do not tell anyone in<br />

CHRISTMAS SPIRIT<br />

the guests onboard for they knew nothing.<br />

advance. Tragically they seem to believe<br />

As Christmas is close, it is important to<br />

For the majority of the passengers it was<br />

family, friends and colleagues are better off<br />

be mindful some of our friends, family,<br />

party time. The show must go on.<br />

without them. Nothing could be further<br />

colleagues and neighbours struggle at this<br />

from the truth.<br />

time of year. Seafarers are vulnerable to<br />

IMPACT UPON THE CREW<br />

At the memorial service we held a couple<br />

loneliness and isolation due to separation<br />

I was introduced to some of the officers and<br />

of days after his death, there was a long line<br />

from loved ones. Remember them also.<br />

learned the victim was one of their own.<br />

of his crew family, friends and colleagues<br />

Join us at our Christmas Celebration<br />

Neither the staff captain nor the master<br />

who walked up to his framed photo and paid<br />

and Information evening at the Sydney<br />

had experienced such a tragedy aboard<br />

their last respects. It was a holy moment.<br />

Mission on <strong>December</strong> 10 where we will<br />

ship, and they were glad to have someone<br />

This was no easy place to be, at such a<br />

look back on the year that is ending and<br />

familiar with handling people who had<br />

time there is so much pain and confusion.<br />

look forward to 2020.<br />

been close to a recently deceased. There<br />

He had been a kind officer, a gentleman<br />

were several teams who had been close to<br />

the officer as well as those who had been<br />

involved in the discovery and retrieval of<br />

even, who went about his business quietly<br />

and efficiently. After the service the crew<br />

dispersed to take up their various duties<br />

If this article has raised any issues, contact<br />

Mission to Seafarers Sydney on (02) 9241 3009<br />

or Lifeline on 131 114.<br />

GaudiLab<br />

64 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


Australia’s best connected gateway port


The grill<br />

Professor Vinh Thai, from the School of<br />

Business IT & Logistics at RMIT University<br />

talks about his work, travel and why<br />

people should consider a maritime career<br />

What is your current job and what does<br />

it entail?<br />

As Associate Professor at the School of<br />

Business IT & Logistics, RMIT University<br />

in Melbourne, my work portfolio includes<br />

teaching, research and administration<br />

in the context of my duty as the deputy<br />

program manager for the Master of Supply<br />

Chain and Logistics management program.<br />

What makes your work rewarding?<br />

I often say this about my work: “you get<br />

paid for what you love doing”. In my case,<br />

I love teaching and researching in my<br />

domain of maritime logistics. Teaching<br />

gives me a sense of fulfilment as it is one<br />

of the ways to influence people for a better<br />

world, while research gives me joy especially<br />

when that research is impactful.<br />

How did you get into researching<br />

shipping and logistics?<br />

My bachelor (Vietnam Maritime<br />

University), master (World Maritime<br />

University) and PhD (Australian<br />

Maritime College – University of<br />

Tasmania) degrees are all related to ports<br />

and shipping. My research of shipping<br />

and logistics started when I came to<br />

the AMC for my PhD after some time<br />

working for the maritime industry in<br />

Vietnam in a freight forwarding/shipping<br />

agency and at a container shipping line<br />

and container terminal.<br />

Do you think enough people<br />

understand the importance of<br />

commercial shipping?<br />

I think most people understand the<br />

importance of the ocean to Australia, but<br />

perhaps not many people know shipping is<br />

critical to the country as her foreign trade<br />

is dependent on shipping with nearly 99%<br />

of Australia’s foreign trade in terms of<br />

volume going through ports.<br />

Would you encourage people to<br />

consider a shipping or logistics career?<br />

Definitely. A career in shipping and<br />

logistics has challenges but also rewards.<br />

Although it is not trendy compared with<br />

other areas such as finance, banking or<br />

insurance, it is the lifeblood and backbone<br />

of any nation’s economy.<br />

Where did you grow up?<br />

I grew up in a sea town in the central<br />

coast of Vietnam, Qui Nhon, which<br />

possesses one of the most beautiful<br />

beaches in the country and perhaps<br />

Asia. My youth is always associated<br />

with the ocean. My hometown is<br />

in the tropical monsoon zone and<br />

thus I remember I went to the beach,<br />

which is only 10-minutes jog from my<br />

parents’ house for swimming virtually<br />

every day. Apart from that, I really<br />

miss all the food delicacies the town<br />

has to offer.<br />

You have lived in Melbourne and<br />

Tasmania. Which was the best place<br />

to live?<br />

It’s hard to say since each has its own<br />

pros and cons. I miss the quality of<br />

the air in Tasmania – it’s so fresh and<br />

pristine – which is hard to find in<br />

Melbourne. The landscape in Tassie<br />

is also quite unique. Meanwhile,<br />

Melbourne offers the vibrancy of<br />

the metropolitan work life but also<br />

other aspects of the countryside life.<br />

If possible, I would like to work in<br />

Melbourne but enjoy life in Tasmania.<br />

What do you enjoy most about<br />

Melbourne life?<br />

You have everything you need here. The<br />

inclusiveness yet diversity of food and<br />

drink is another attractive feature, not<br />

to mention the cultural festivals and<br />

events. In my profession, Melbourne<br />

offers the unique advantage of being a<br />

hub for shipping and a port with all the<br />

industry players.<br />

Have you got a favourite Melbourne<br />

restaurant?<br />

I am easy-going when it comes to food. My<br />

favourite is of course Vietnamese cuisine.<br />

By the way, I have just found that Pho<br />

Thin Lo Duc, a well-known pho restaurant<br />

in Hanoi, has just opened a branch in<br />

Melbourne. If you are a fan of pho, this<br />

northern style with stir-fried beef is<br />

certainly something you must try.<br />

What do you enjoy doing in your<br />

spare time?<br />

I love watching movies, especially action<br />

and kungfu ones. Apart from that, I love<br />

cycling with my two little devils, my<br />

daughter of 16 and son of 10 and especially<br />

playing soccer with the little one.<br />

Where is your favourite place for a<br />

holiday?<br />

Apart from locations in Vietnam such as<br />

my own hometown, I would like to visit<br />

Japan (again) and especially Kyoto and<br />

Sapporo. There is so much to learn in<br />

terms of culture.<br />

Is there an Australian person<br />

(past or present) who you consider<br />

inspirational?<br />

Perhaps Bob Hawke, the former PM.<br />

David Sexton<br />

66 <strong>December</strong> <strong>2019</strong><br />

thedcn.com.au


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