DCN December Edition 2019
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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 />
Advertising Sales Director<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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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
BRINGING THE PORT<br />
TO THE PRODUCT<br />
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highly efficient port infrastructure.<br />
The first of its SA developments is at<br />
Lucky Bay, near Cowell on Eyre Peninsula,<br />
with planning underway for a second port<br />
at Wallaroo on the Yorke Peninsula.<br />
The first bespoke transhipment<br />
vessel, currently nearing completion<br />
in China, has capacity for transport of<br />
commodities from SA to other states<br />
- in bulk and by container.<br />
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 />
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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 />
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Your financial support would be much appreciated.<br />
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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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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 />
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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 />
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