DCN December Edition 2019

More documents

Recommendations

Info

INDUSTRY ANALYTICS Container volumes contract for the second time in a decade The Australian Competition & Consumer Commission has released its 2018-19 monitoring report for container stevedoring. Here are some key excerpts A WEAKENING ECONOMY COMPETITION EVIDENT and since the third stevedores entered the dampened demand for stevedoring services Competition has resulted in further shifts industry at the east coast ports. Revenue in 2018–19, with growth rates far below in the stevedores’ shares of national lifts. per lift grew by 1.8% to $268.50. those reported in the previous year, Most notable was the share of lifts handled The industry generated $167m in revenue according to the Container stevedoring by DP World falling from 44.4% in 2017–18 from infrastructure charges in 2018–19, monitoring report 2018–19. to just 39.1% in 2018–19. However, fellow an increase of 63% from 2017–18. After The number of lifts made by the incumbent stevedore Patrick fared much DP World’s decision to increase charges in international container stevedores fell for better during the year, with its share of Melbourne from around $49 to $85 from only the second time in the last decade. The national lifts increasing from 41.5% to 1 January 2019, Patrick and VICT followed stevedores reported 5.11m lifts in 2018–19, 43.5%, after it reported having won several with increases of their own. Patrick now down 0.5% from the previous year. Lifts new contracts during the period. has the highest charges in Sydney ($77.50) of full containers fell by 4.9% while empty The dominance of the two largest and Brisbane ($71.50). containers increased by 14.6%. stevedores was diluted further in 2018–19. Industry volumes were slightly better The combined share of lifts by the two INDUSTRY-WIDE PROFITABILITY when measured on a TEU basis, as cargo firms represented 82.6% of national lifts, REMAINS LOW owners continued to increasingly adopt the lowest on record. Some industry profitability indicators fell 40-foot containers instead of 20-foot After just two years of operations, VICT in 2018–19, continuing the trend reported containers. The container terminals reported has now established itself as an effective in recent years. Industry operating profit handling a combined 7.88m TEU in 2018–19. competitor in Melbourne. Its share of lifts fell by 4.7% to $81.3m and operating profit This represented growth of 0.2%, the second in Melbourne more than doubled to around margin fell slightly to 5.9%. While the lowest rate over the past ten years. 15% after it won several shipping services industry’s return on tangible assets was The slowdown in container volume during the period. On the other hand, unchanged at 3.8%, this figure has fallen growth reflects weakening economic Hutchison’s share of total lifts in Brisbane from a high of 27.8% in 2011–12. activity in goods distribution industries and Sydney remained at 13%. While stevedores have had to face such as retail and manufacturing. In growing bargaining power of the shipping addition, the drought in eastern Australia HIGHER INFRASTRUCTURE CHARGES lines in recent years, the significant fall and floods in Queensland negatively Higher infrastructure charges helped in this latter figure also represents a impacted on volumes of various export commodities such as grain, hay and cotton. to drive growth in unit revenues for the stevedores for the first time since 2011–12 much larger asset base due to the new container terminals in Brisbane, Sydney and Patrick 60 December 2019 thedcn.com.au
Patrick Terminal, Port Botany, Sydney Melbourne and, to a lesser extent, increased unit costs. While some industry-wide profitability measures have clearly declined, it is important to note that performance varies greatly by stevedore. In 2018–19, most stevedores reported much improved profits or reduced operating losses, while some stevedores’ profitability fell. PER LIFT REVENUE $266.1 $34.2 Quayside Landside and other $190.4 $78.1 PRODUCTIVITY INDICATORS Productivity of some Australian container ports now appears on-par with comparable international ports. Productivity at Australian ports has increased significantly since the late 1990s. In 2018–19, data provided by BITRE to the ACCC showed improved productivity levels on the quayside. All three key indicators of quayside productivity—crane rate, labour rate and ship rate—went up by more than 5%. In particular, labour and ship rates are now at record highs. Melbourne was the best performing of the Australian ports. 2009-10 2018-19 RETURN ON TANGIBLE ASSETS 27.8% 18.4% 3.8% 2009-10 2018-19 *Earnings before interest, tax and amortisation (EBITA) as a percentage of total revenue. ** Includes international container terminal volumes only. *** Containers per hour. LIFTS PER STEVEDORE** 4.5% Patrick 2.2 million 12.3% DP World 2.0 million 0.8% Hutchison 0.3 million 0.8% Flinders Adelaide 0.3 million 147% VICT 0.3 million CONTAINER TERMINAL PRODUCTIVITY Ship rate*** 64.7 8.3% REVENUES, COSTS AND PROFITS Crane rate*** 30.7 5.3% TEU PER PORT** Adelaide 5.3% Fremantle 10% Brisbane 16.6% Labour rate*** 51.4 7.5% TOTAL REVENUE REVENUE PER LIFT COST PER LIFT PROFIT MARGIN* $1371m $268.5 $252.8 5.9% 1.3% 1.8% 2.4% 0.5pp Sydney 33.7% Melbourne 34.3% Truck turnaround time (mins) 29.3 0.4 thedcn.com.au December 2019 61
Page 1 and 2:
First published in 1891 December 20
Page 3 and 4:
Port Botany is Australia’s premie
Page 5 and 6:
INSTANT PRICING AT YOUR FINGERTIPS
Page 7 and 8:
Up close and personal. Whatever you
Page 10 and 11: News in brief Full details at thedc
Page 12 and 13: NEWS IN BRIEF Gangway injury prompt
Page 14 and 15: NEWS IN BRIEF LODESTAR AND SWIRE TO
Page 16 and 17: 2019 DCN AUSTRALIAN SHIPPING & MARI
Page 28 and 29: WOMEN IN MARITIME Navigating treach
Page 30 and 31: 40 YEARS OF PORT BOTANY NSW Ports i
Page 32 and 33: INDUSTRY OPINION Exporters worst hi
Page 34 and 35: NORTHERN TERRITORY FUELLING CHANGE
Page 36: NORTHERN TERRITORY An artist’s im
Page 39 and 40: “Some of the minerals have come b
Page 41 and 42: Picked one day and on plates in Asi
Page 43 and 44: See further and manage shipments fa
Page 45 and 46: Initial design concepts have been u
Page 47 and 48: Women will understandably pursue al
Page 49 and 50: Marine Cargo Specialists Marine Car
Page 51 and 52: a just as problematic as being into
Page 53 and 54: Keeping the ports of NSW safe, secu
Page 55 and 56: Ian Ackerman Andrew Hudson, partner
Page 57 and 58: Helping economies grow and customer
Page 59: Devinder Grewal, consultant, AISTL
Page 63 and 64: Paul Deacon and Carolyn Brush at CB
Page 65 and 66: Australia’s best connected gatewa
Page 68: Sourcing the most important link in
show all

DCN December Edition 2019

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?