Shipping Australia Limited Annual Review 2017 More than 100 years of ports and logistics experience

> Line Haul & Freight > Automotive Logistics & Management PCC/RORO > Bulk Transport & Storage > Project Cargo > General Stevedoring > Forestry & Livestock Logistics > Warehousing & Distribution > Port Management > Global Forwarding > Oil & Gas Services linxcc.com.au 1300 487 837 contents 2 Company overview 54 North Queensland 56 Townsville 4 From the minister south australia 5 saL members 58 Flinders Ports 6 Chairman’s report victoria 7 board oF direCtors 57 Melbourne 8 Ceo’s report western australia 10 saL struCture 60 Fremantle 11 poLiCy CounCiL internationaL orGanisations 62 CLIA Australasia and Asia 12 Liner serviCes 63 FONASBA state Committee reports 64 International Chamber of Shipping 14 New South Wales maritime Law and insuranCe 16 Queensland 66 General Average in ofshore construction projects: 18 South Australia salient lessons 18 Victoria Maurice Thompson 19 Western Australia 68 Reform of the Marine Insurance Act 1909 20 younG shippinG austraLia Stuart Hetherington saL votinG member updates 70 Maritime arbitration – its place in the global economy 22 Austral Asia Line Peter Mcqueen 24 Asiaworld Shipping Services 26 Hapag-Lloyd Australia 74 Australia’s proposed insolvency reforms: what impact 28 Inchape Shipping Services they may have on Australia’s shipping and trade 30 Maersk Line Oceania industries 32 Wilhelmsen Ships Services Stephen Thompson and Ranjani Sundar CommonweaLth aGenCies 76 Competition law and liner shipping 34 Department of Immigration and Border Protection Nathan Cecil and Rebecca Niumeitolu 36 Department of Agriculture and Water Resources 77 Damages for unjustifed arrest of ships 38 Department of Infrastructure and Regional Jesper Martens Development 78 Recent changes to the business equivalent of the state transport and LoGistiCs rules concerning bullying at school - the new s46 of 40 New South Wales 41 Queensland the Competition and Consumer Act 2010 Robert Wilson and Tom Morrison ports 42 Ports Australia 79 Container lines strive to improve cargo integrity Marcus John new south wales 44 Port Authority of New South Wales eduCation and traininG 46 Port Botany / Port Kembla 80 Australian Maritime College 48 Newcastle maritime saFety Queensland 84 Australian Maritime Safety Authority 50 Brisbane 86 Australian Transport Safety Bureau 52 Far North Queensland naviGation 88 Australian Hydrographic Service 90 Brisbane Marine Pilots the oFFiCiaL JournaL oF shipping australia Ltd 92 OMC International Level 1, 101 Sussex Street, Sydney NSW 2000 PO Box Q388 Sydney NSW 1230 towaGe p: 02 9266 9900 96 Engage Marine and Westug w: www.shippingaustralia.com.au twitter: @shippingaus 97 Svitzer Australia pubLiCations Commitee Chairman: Ross McAlpine Container manaGement vice chairman: Frank Needs 98 1-Stop Connections executive editor: Rod Nairn executive assistant: Sharyn Flood 100 Chalmers Industries Graphic designer: Sarah Abrahams 101 Royal Wolf Holdings Ltd e: [email protected] stevedorinG & LoGistiCs advertising Co-ordinator: For advertising contact Steve Moxey 104 DP World Australasia p: 0400 473 200 e: [email protected] 106 Hutchison Ports Australia PO Box 43 Woonona NSW 2517 107 LINX Cargo Care Group Shipping Australia Magazine is published for Shipping Australia Ltd by Ontime Publications Ontime Pubications. Shipping Australia Limited Annual Review 2017 1 our vision The frst choice for membership of a national shipping industry body; trusted by Government and industry bodies providing quality advice, promoting the interests of the shipping industry and creating enduring value for our members.

our mission To promote and advance the interests of members in shipping policy for a sustainable maritime industry.

our values Professionalism, Respect, Integrity, Teamwork

overview Shipping Australia Limited is a peak shipowner association with 28 member lines and shipping agents and with 48 corporate associate members which generally provide services to the maritime industry in Australia. Our member Lines are involved with over 80 per cent of Australia’s international container trade and car trade, as well as over 70 per cent of our break bulk and bulk trade. A number of our members are also actively engaged in the provision of coastal cargo services to Australian consignors and consignees. Our members include cruise ship and towage operators. A major focus of SAL is to promote efcient and efective maritime trade for Australia, whilst advancing the interests of ship owners and shipping agents. SAL also provides secretariat services to the many liner companies and agencies that are members of conferences, discussion agreements, consortia and joint services that have their agreements registered under Part X of the Australian Competition and Consumer Act, 2012. These agreements specifcally seek to facilitate and encourage growth of Australia’s international liner shipping trades.

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Disclaimer: Readers are advised that Shipping Australia Limited and the Publisher cannot be held responsible for the accuracy of statements made in advertising and editorial, nor the quality of the goods or services advertised. Opinions expressed throughout the publication are the contributors own and do not necessarily reflect the views or policy of Shipping Australia Limited or the Publisher. While every reasonable effort has been taken to ensure the accuracy of the information contained in this publication, the Publisher takes no responsibility for those relying on the information. The Authors, Publisher and Shipping Australia Limited disclaim all responsibility for any loss or damage suffered by readers or third parties in connection with the information contained in this publication. Nothing in this publication should be construed as personal or professional advice and should be read as general information only.

Warranty and Indemnity: ADVERTISERS and/or advertising agencies upon and by lodging material with the Publisher, Ontime Publications for publication or authorising or approving of the publication of any material indemnify Shipping Australia, the Publisher, its servants and agents, against all liability claims or proceedings whatsoever arising from the publication and without limiting the generality of the foregoing to indemnify each of them in relation to defamation, slander of title, breach of copyright, infringement of trademarks or names of publication titles, unfair competition or trade practices, royalties or violation of rights or privacy regulations and that its publication will not give rise to any rights against or liabilities in the Publisher, its servants or agents and in particular, that nothing therein is capable of being misleading or deceptive or otherwise in breach of Part V of the Competition and Consumer Act, 2010 (Cth).

2 Shipping Australia Limited Annual Review 2017 1–3 May 2018, Gold Coast, Queensland

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NAV18 Advertisement.indd 1 3/11/2017 10:45:22 AM from the minister shipping regulation reform critical to australia’s future

By the Hon DARREN CHESTER MP, Minister for Infrastructure and Transport

For Australia to fourish, our national freight and I have also been working with the transport and supply chain must be efcient and productive. It is logistics sector, State and Territory governments and critical to our international and domestic trade that our local communities to develop a National Freight and existing regulatory environment for coastal shipping is Chain Strategy which will better meet the demands of reformed, giving us the scope to have more domestic our national economy. The strategy is being crafted freight moved by ship. To achieve this, the Australian through an Inquiry into National Freight and Supply Government is committed to working together with Chain Priorities which will frame our understanding of industry to foster a strong and safe maritime industry. what challenges lie ahead and how we can best take advantage of the opportunities presented. The amount Improving the way Australia plans, develops and of engagement from stakeholders is very pleasing, as manages transport infrastructure to meet long-term is the widespread support for the development of a domestic challenges is an important part of the Coalition national strategy that acknowledges the importance of Government’s agenda. Our transport and infrastructure improving the links between our road and rail freight, and needs are growing, with our domestic freight task our major ports. The second stage of the consultation expected to grow by 80 per cent between 2010 and process is progressing through talks with selected 2030. stakeholders, with the fnal inquiry report due in March Australia’s freight infrastructure—roads, rail, intermodal 2018. terminals and ports—and our coastal shipping sector, I look forward to continuing to work with all stakeholders must be prepared to meet this forecast growth, and have to establish a National Freight and Supply Strategy; and their right regulations in place to allow it to respond to to grow a strong and viable coastal trading industry. changing market forces, boost productivity and ensure our global competitiveness. A viable shipping industry, including a sustainable coastal trading sector, is essential to the ongoing prosperity of our nation. The current coastal trading regulation is holding coastal shipping back. Only 15 per cent of Australia’s domestic freight is moved by ship, but with our huge coastline and broad network of ports, there is plenty of scope for this fgure to increase. Our coastal trading sector must be freed from needless red tape to ensure Australian editor’s note: businesses, especially our manufacturers, are given A ministerial re-shufe announced by Prime more choice and fexibility in how they move freight Minister Malcolm Turnbull on 19 December, around Australia. appointed Deputy Prime Minister Barnaby Joyce Australia’s shipping sector is a vital link in the supply as Minister for Transport and Infrastructure. We chain; but for Australia to be truly open for business, congratulate Deputy Prime Minister Joyce on his regulations should be set with a clear understanding of appointment and look forward to working with him the marketplace and greater economic ambitions. in the interests of promoting more efcient and sustainable international and domestic shipping. Stakeholders have told me current regulation is administration-heavy, creating extra burdens they can Shipping Australia would like to thank Darren do without. In a bid to turn this around, I introduced Chester for his hard work and focus on the Coastal Trading (Revitalising Australian Shipping) improving Australia’s national freight and logistics Amendment Bill 2017 into Parliament on 13 September, infrastructure and his eforts to modernise shipping with the aim of creating a simpler and more fexible legislation over the past two years. coastal shipping industry that meets the demands of our modern economy.

4 Shipping Australia Limited Annual Review 2017 sal members

voting members Chalmers Industries Pty Ltd A.P. Moller-Maersk A/S Clyde & Co Australia Pty Ltd Asiaworld Shipping Services Pty Ltd Colin Biggers & Paisley Pty Ltd Austral Asia Line Pte Ltd Containerchain Pty Ltd BBC Chartering Australia Pty Ltd Darwin Port Corporation Pty Ltd CMA CGM Group Agencies DP World Australia Pty Ltd (Australia & New Zealand) COSCO Shipping (Oceania) Pty Ltd Field & Associates Pty Ltd Evergreen Marine Australia Pty Ltd Flinders Ports Holdings Pty Ltd Gulf Agency Company (Australia) Pty Ltd Fremantle Ports Hamburg Süd Australia Pty Ltd Gilbert & Tobin Lawyers Hapag-Lloyd (Australia) Pty Ltd Henning Harders Shipping Australia Inchcape Australia Limited Holding Redlich K Line (Australia) Pty Ltd Holman Fenwick Willan HFW LBH Australia Pty Ltd Hutchison Ports Australia Pty Ltd Mediterranean Shipping Co (Aust) Pty Limited HWL Ebsworth Pty Ltd Mitsui OSK Lines (Aust) Pty Ltd LINX Cargo Care Group Pty Ltd Monson Agencies Australia Pty Ltd Macquarie Telecom Pty Ltd Neptune Pacifc Agency Australia Pty Ltd Maritime Container Services Pty Ltd NYK Line (Australia) Pty Ltd Melbourne International RoRo & Auto Terminal Pty Ltd OOCL (Australia) Pty Ltd Pacifc Asia Express Pty Ltd (PAE) Norton Rose Fullbright Australia Group Pty Ltd Quay Shipping Australia Pty Ltd Norton White Lawyers & Notaries Seaway Agencies Pty Ltd NSW Ports Pty Ltd Ship Agency Services Pty Ltd OMC International Pty Ltd Smit Lamnalco Towage (Australia) Pty Ltd Patrick Terminals Svitzer Australia Pty Limited Peter McQueen Pty Limited The China Navigation Company Pte. Ltd. Port Authority of New South Wales (Australian Branch) Port Kembla Gateway Pty Ltd Wallenius Wilhelmsen Logistics A/S Port Lincoln Tugs Pty Ltd Wilhelmsen Ships Service A/S Port of Brisbane Pty Ltd Contributing members Port of Newcastle ANL Container Line Pty Ltd Port of Townsville Ltd Neptune Pacifc Agency Australia Pty Ltd Port Phillip Sea Pilots Pty Ltd Pacifc Forum Line (NZ) Ltd QUBE Ports Pty Ltd

Corporate associate members Royal Wolf Trading Australia Pty Ltd 1-Stop Connections Pty Ltd Thomas Miller (Australasia) Pty Ltd AGS World Transport Pty Ltd Thompson Clarke Shipping Pty Ltd Aquio Innovation Pty Ltd Victoria International Container Terminal Ltd Ardent Oceania Pty Limited Victoria Ports Corporation (Melbourne) Australian Amalgamated Terminals Pty Ltd Victorian Regional Channels Authority Australian Maritime College Westug Pty Ltd Australian Pilotage Group Australian Reef Pilots Pty Ltd individual members Brisbane Marine Pilots Pty Ltd Mr Frank Needs

Shipping Australia Limited Annual Review 2017 5 chairman’s report a continual evolution - plenty going on here!

By SCOTT HENDERSON

It’s been a better year for shipping. strategy; frst port of entry regulations… Safe Ports business breakfast. There will Container rates have improved, and a The list is truly endless. I will leave it be more in store in 2018. bumper agricultural year saw record high for our chief executive to provide more demand for exports last summer. The dry details of these matters. In Queensland, our enduring State bulk index is now fve times what it was secretary, Bill Guest, has continued to Around the States, SAL has continued in February 2016. Product tanker rates be dynamic in his management of State to be active. In Victoria, last December, have improved on the back of increasing Committee meetings and excels in the SAL held a lunch to honour Phil Kelly, global demand for diesel, petrol and coordination of special events. The SAL our long-term State secretary, who had particularly jet fuel. There are signs that Queensland Shipping Industry Golf Day is stood down due to ill health. Only a the recent upturn in the heavy lift/project legendary, and the SAL Shipping Industry month later we were all saddened by the cargo sector may be sustained and of Ball, held in October each year, is well news of his passing. A ftting tribute to course, the cruise industry is continuing supported by sponsors and guests. This Phil was published in the SAL Autumn/ year the event raised $15,000 for the to boom. We must all be smiling. Winter Magazine and I will not attempt to Mission to Seafarers thanks to generous SAL has increased its shipping line summarise it here. Please take the time platinum sponsorship from Port of representation during the past year. I to read it (all magazines are available on Brisbane, Gold sponsors: Svitzer, Patrick was pleased to welcome Quay Shipping the SAL website), if you have not already and Chalmers and other supporting Australia as a new full member at the end done so. sponsors. of 2016. The mergers and acquisitions At the beginning of 2017 we welcomed between global shipping lines, which Charles Masters (formerly Columbus Line My very sincere thanks to our volunteer have been widely discussed in the and Marfret), to take on the Victorian State chairmen, Geof Dalgliesh (K-Line) maritime press, have added the former State secretary role. Charles has been Queensland, Bill Rizzi (MSC) New South operations for China Shipping and UASC very active since and (despite a short Wales, Sunil Dhowan (WWL) Victoria, Paul to SAL by inclusion within COSCO and absence for heart surgery) has arranged a Paparella (Asiaworld) South Australia, and Hapag-Lloyd respectively. Unfortunately, successful golf day, a luncheon featuring Robert Boyce (MSC) Western Australia, these mergers and acquisitions can also Federal Minister Darren Chester, a very for their leadership on shipping matters negatively impact on SAL revenue. APL popular blockchain business breakfast, in their States. I would also like to thank did not renew their membership this and has upscaled and relocated the State various committee chairmen of our year following their acquisition by CMA- committee Christmas lunch to the iconic national steering groups, Ross McAlpine CGM. Other major line changes such as West Brighton Club! You can expect to (Border Agencies, Technical and Public Maserk’s acquisition of Hamburg-Sud hear of a lot more interesting events in Relations Steering Groups), Eddy Declerq and COSCO’s acquisition of OOCL are Victoria now that Charles has settled in. (Human Resources Steering Group), not expected to impact on membership David Pratt (Bulk Shipping Group) and numbers, as those lines are already Our New South Wales State Committee John Thompson (Maritime Legal Steering members of SAL and have announced has been particularly active. We saw the Group). that they will continue to operate separate departure of our long time Minister for Roads Maritime and Freight, Duncan Gay. brands. In my frst year as chairman it has Our New South Wales State chairman, been a bit of a revelation to be more There has been much going on in policy Bill Rizzi and CEO Rod Nairn have intimately involved with the work of and advocacy throughout 2017. Matters subsequently met with Minister Melinda the SAL team. The SAL secretariat being addressed by SAL include: Pavey, and SAL has been invited to join availability of equipment to support the Ministerial Freight Advisory Council. works very hard behind the scenes to exports; coastal shipping amendment As has been the trend over many provide public comment and infuence bill; MUA’s expansion plans; passage of years, the New South Wales events, policies, provide concise summaries of Harper Review amendments and scoping expertly coordinated by State secretary important information for members and of block exemption; amalgamation of Melwyn Noronha, have been generally support members to provide sustainable Customs, Immigration and Attorney oversubscribed this year and invitations international shipping. In closing, I would General functions; visa requirements for usually limited to members and their like to thank our small but efective FPSO; IMO developments; ballast water guests. This year the events included: SAL team for their professionalism and convention implementation and charges; Parliamentary Lunch; Newcastle Club ongoing dedication to providing these biofouling; national freight and logistics regional lunch; Christmas Lunch; and a services.

6 Shipping Australia Limited Annual Review 2017 board of directors

scott henderson, Ken Fitzpatrick, chairman vice chairman Appointed 24 February 2015 Appointed 4 December 2006 (chairman 2 December 2016) (chairman December 2011 to December 2016) Managing director, Gulf Agency Company (Australia) Director, Asiaworld Shipping Pty Ltd since 2014. Scott has Services Pty Ltd. Ken has over 24 years of agency experience 45 years shipping experience in Australia, prior to that he in a variety of industry served as deck ofcer in the related activities including British merchant navy for the Australian and overseas seven years. market. simon aynsley Kevin Clarke Appointed 8 December 2010 Appointed 12 November 2003 Managing director, CMA CGM Kevin Clarke has worked in Group Agencies (Australia the shipping industry for over and New Zealand) Pty Ltd. 50 years, the past 30 of which Simon has 39 years shipping have been as managing industry experience. director, Mediterranean Shipping Company (Aust) Pty Limited. eddy deClercq Geof Greenwood Appointed 8 August 2008 Appointed 3 May 2004 Managing director OOCL Managing director, Hamburg (Australia) Pty Ltd. Eddy has Süd Australia Pty Ltd. with 35 years of shipping industry 33 years shipping industry experience in various key experience, Geof has commercial and management held key commercial and positions in Belgium, management positions in Denmark, The Netherlands Canada, USA and Australia. and Sydney.

Gerard morrison adrian peterson Appointed 8 May 2017 Appointed 21 December 2015 Managing director Maersk Manager East Coast Line Oceania. Gerard worked Oceania/PNG, Wilhelmsen in the telecommunications Ships Service. Adrian has industry both in the United 29 years experience with Kingdom and Japan prior companies such as Union to transitioning to freight Bulkships, Contship, Pacifc forwarding. He joined Maersk Asia Express. He also has Line in 2006, advancing to extensive experience working director of sales in 2013, then with liner traders, bulk, tanker to managing director in 2015. and Ro/Ro vessels. Adrian is a member of QTLC.

Shipping Australia Limited Annual Review 2017 7 ceo’s report

a better year astern, but overcapacity threatens

By ROD NAIRN

this year started with a bang, with The end of year season is not title as I write. This is no surprise, the bumper agricultural crops shaping up to be anywhere near as record low orders have caused driving high demand for export as buoyant, behaviours have also the closure of a number of Chinese slots and particularly for food generally improved, which eases and Korean shipyards. I’m sure grade 20 foot containers. these the artifcial escalation of the that won’t last for long. Orders for pressures led to a bit of mud- problem. On the other hand, the nine massive 22000 TEU ships were slinging between industry bodies pre-Christmas peak import season placed by CMA-CGM in September, and the re-emergence of shonky has been particularly strong, and by for delivery in 2019. Since then MSC practices – double and triple November lines were already close has ordered eleven similar ships and bookings by shippers led to ships to booked-out, while transhipment COSCO another six. These orders sailing with empty slots, even when cargoes were stockpiling in Malaysia indicate the confdence of shipping many bookings had been rejected and Singapore. It seems that companies that the improvements due to lack of space. it was not fnally we can see a more sustained in rates are likely to be sustained, surprising to see some lines improvement in the global economies but the biggest threat is returning that are refected in these trade to overcapacity that has keep the introduce cancellation charges in trends. market low for many years. an attempt to counter this practice. in general, this seems to have SAL on-line training courses have Earlier this year the Infrastructure worked. been further developed throughout Victoria Report into Victoria’s future this year to take into account container port, raised concerns developing logistics trends. Shipping among our members and led to Australia’s Introduction to Shipping a SAL response and a series of and Shipping Industry Fundamentals discussion with Infrastructure courses continue to provide the most Victoria, Port of Melbourne and the convenient way for people working Victorian Government, aimed at in the shipping and logistics industry encouraging Victoria to recognise the to gain an understanding of how urgency of the requirement of Victoria the shipping industry works, or to to accommodate bigger ships. The develop their knowledge further. But ship size indications used in the with the national focus on Chain of report were well out of date. Also, Responsibility for the logistics sector, they were mainly based on estimates SAL has now added a Chain of of demand, when in reality, the size of Responsibility Compliance course to ships coming to Australia is driven by our on-line ofering. supply – the cascade down of larger ships on a lines inventory when new, 2017 was also a year for records bigger ships are brought online in the in ship sizes. For each of the frst major east-west trade lanes. Since fve months of the year, shipping the opening of the new Panama lines were announcing the biggest Canal locks only 18 months ago, ship container ship ever, had entered design has changed dramatically, in service. This trend seems to have particular, they are getting wider. slowed over the second half of the year with OOCL Hong Kong at 21413 Bigger ships are coming to our region TEU, which entered service in June and to Australia. The New Zealand (and her subsequent sister ships), port of Tauranga expanded to take apparently still holding onto this 9,500 TEU ships and since then

8 Shipping Australia Limited Annual Review 2017 has increased throughput by 15 per roles currently covered by AMOU regulation of domestic ballast water cent. In October one of these swung and AIMPE were thwarted, as to be implemented at the same through Brisbane to pick up empties. following strong objections their time, and while SAL has supported Botany has also hosted ships of up application was withdrawn. But the the concept of a standard national to 8,500 TEU and is capable of taking spectre of a merger between the regulation for ballast water, we were 12,000 at some terminals. MUA and CFMEU now looms large not expecting international shipping with their members voting for the to be hit with additional charges to A number of commentators were amalgamation. Such a merger could implement the domestic scheme. critical that there was no mention do no good for Australia and will of shipping in the Paris Climate be a retrograde step for waterfront We are advised that an increase agreement, but the international productivity. in the international arrivals charge shipping industry has been proactive will support the cost of monitoring in pressing for more fuel efciency, We had more than a taste of what within selected Australian ports, and and less carbon and sulphur may come, at the end of November. monitor the risk of moving ballast emissions. The ICS has been very In Sydney, the MUA programme water from port to port. With hull supportive of IMO eforts to develop a of short, disruptive 24 hour strikes fouling now also becoming a greater comprehensive strategy for reducing suspending pilot vessel operations focus, such monitoring should meet CO2 emissions from shipping, and to most cargo ships at Port Jackson the requirements for monitoring and Port Botany, caused disruption the pressure is now being put on both ballast water and hull fouling refners to produce sufcient low to the peak import season in the vectors, and we would not expect sulphur fuel to meet the IMO’s low lead up to Christmas. It also took any further increases in charges to sulphur fuel limits. Further ahead, money out of the pockets of their there is serious discussion on a zero own union workers, who won’t see support additional monitoring. In CO2 shipping industry by 2050. their pay rises until their new EBA November, we were pleased to note is in place. But the strikes were not that the Fran Marine’s in-water hull LNG powered ferries are now about workers conditions, they were cleaning system, which has been considered old hat but the trend a blatant power play by the unions under development for a number of towards LNG has entered a new trying to take over management years, received approval to operate phase, as a potential shortage in decisions and dictate the future in Western Australia, and their frst low sulphur fuel oil threatens to structure of Port Authority of New operational clean was reported to be coincide with the introduction of South Wales’ vessel feet. successful. low sulphur regulations. There are already more than a dozen LNG In Melbourne, the MUA initialled a Coastal shipping regulation seems picket and blockade of VICT terminal, powered containerships in operation, to be one of those policy areas hiding behind a smokescreen of but many new orders are built LNG where politics gets in the way of ready, including six 18,900 TEU and “community protest”. The MUA common sense. The amendments eleven 15,000 TEU ships for Hapag- had no justifcation for the protest introduced by Minister Chester Lloyd, as a legacy of UASC. Most in the frst place, but claimed that signifcantly, CMA-CGM’s nine new it was unfair that a casual worker, this year were nowhere near as 22,000 ships will be LNG powered. who was not eligible for an MSIC (a fundamental as those rejected by condition of employment and a legal the Parliament in 2016. These Stevedore infrastructure surcharges requirement for working in a maritime amendments were intended to for landside connections underwent security zone) was dismissed. There smooth out some of the regulatory a signifcant increase this year. While was obviously no case of wrongful wrinkles, make an unworkable we are never happy to see cost dismissal and the matter was not system somewhat workable, and increases in the supply chain, SAL even referred to the Fair Work gain bipartisan support for a smooth was relieved that for once charges Commission. There were no VICT passage through Parliament. But were being applied to those who employees participating in the protest even though they were very similar reaped the beneft, rather than but the illegal union blockade, which to the recommendations that being hiked on shipping companies seemed virtually immune from the the Opposition had made during to continue to subsidize landside attention of the Victorian Police, infrastructure and services provided stopped imports and exports through previous debates, they have been by stevedores to truck and rail VICT for two weeks. This event was immediately lampooned and face a operators. The result has kept the ongoing at time of writing but in my difcult passage through the Upper stevedore competition tight and opinion, the police need to step in House. I still fnd it incredulous that should help to keep overall supply and arrest those who are breaking amendments designed to increase chain costs down. Nevertheless, I the law. Otherwise, these external the use of shipping to move long haul have heard some concerning reports pickets are likely to become the new heavy cargo are consistently rejected that others in the landside supply favourite modus operandi for unions by Labor and the Greens, when chain have used these infrastructure wishing to raise the profle of their the net impact would be to: reduce levy increases as a cover to raise executive at the expense of their greenhouse gas emissions, reduce their own margins and even introduce members. road congestion and infrastructure new phantom levies. Buyer beware! In September we saw the demand, increase jobs across the Back in January, the MUA’s attempts International Ballast Water Australian economy, and reduce the to expand their infuence into other Convention come into force. number of needless deaths in heavy employment categories on the Australia made amendments to the vehicle road accidents. Clearly, I am waterfront, such as professional recent Biosecurity Act to enable the not a politician.

Shipping Australia Limited Annual Review 2017 9 sal structure

saL staff

back row (from left) Rod Nairn, chief executive ofcer; Matthew Whittle, policy advisor; Bryan Sharkey, company secretary fnancial controller. Front row (from left) Melwyn Noronha, general manager, technical services and industry policy; Sharyn Flood, executive assistant; Andrew Chittenden, general manager, liner services.

national state committees steering groups new south wales state committee General steering Group • Chairman: Bill Rizzi • Chairman: Ross McAlpine • Secretary: Melwyn Noronha Container technical steering Group Queensland state committee • Chairman: Dexter Vaz • Chairman: Geof Dalgliesh human resources steering Group • Secretary: Bill Guest • Chairman: Eddy DeClercq south australia state committee maritime Legal steering Group • Chairman: Paul Paparella • Chairman: Denis Speyer • Secretary: Rod Nairn public relations steering Group victoria state committee • Chairman: Ross McAlpine • Chairman: Sunil Dhowan technical steering Group • Secretary: Charles Masters • Chairman: Ross McAlpine western australia state committee bulk shipping Group • Chairman: Robert Boyce • Chairman: David Pratt • Secretary: Rod Nairn

10 Shipping Australia Limited Annual Review 2017 policy council

Policy Council representatives attending end of year meeting, 8 December, 2017 policy Council members a.p. moller-maersk a/s hapag-Lloyd (australia) pty Ltd pacifc asia express pty Ltd (pae) Ms My Therese Blank Mr Esteban Perez Mr Michael Horsburgh asiaworld shipping services inchcape shipping services Quay shipping australia pty Ltd Mr David Pratt Mr Darren Dumbleton Mr Graeme Simpson K Line australia pty Ltd seaway agencies pty Ltd austral asia Line pte Ltd Mr Alan Miles Mr Craig McElvaney Mr Christophe Grammare Lbh australia pty Ltd ship agency services pty Ltd bbC Chartering australia pty Ltd Mr Johnny Tam Mr David Begg Ms Kristy Craker mediterranean shipping Co (aust) Cma CGm Group agencies pty Limited smit Lamnalco towage (australia) (australia and new Zealand) Mr Ross McAlpine pty Ltd pty Ltd Mr David Fethers Mr Simon Aynsley mitsui osK Lines (aust) pty Ltd Mr Mark Austin svitzer australia pty Limited CosCo shipping (oceania) pty Ltd Mr Stefen Risager Mr Bryce Henley monson agencies australia pty Ltd Mr Travis Monson the China navigation Company evergreen marine australia pty Ltd pte Ltd (australian branch) Mr Murray Read neptune pacifc Line Mr Rolf Rasmussen Mr Greg Metcalfe Gulf agency Company (australia) pty Ltd nyK Line (australia) pty Ltd wallenius wilhelmsen Logistics a/s Mr Scott Henderson Mr Jason Huynh Mr Sunil Dhowan hamburg süd australia pty Ltd ooCL (australia) pty Ltd wilhelmsen ships service pty Ltd Mr Peter Creeden Mr Eddy DeClercq Mr Adrian Peterson

Shipping Australia Limited Annual Review 2017 11 liner services member lines Enquiries concerning specifc service details should be directed to individual member’s websites. ANL Singapore Pte Ltd www.anl.com.au APL Co. Pte Ltd www.apl.com Hamburg Sud www.hamburgsud.com Agreements Orient Overseas Container Line (OOCL) www.oocl.com registered under service details The range of ports covered by members south and east Part X of the coast services is as follows: Load ports Competition and Melbourne, Sydney and Brisbane (Note: Adelaide and Tasmanian ports are served via Melbourne). Consumer Act 2010 discharge ports • China - Shekou, Xiamen, Yantian, Qingdao, Shanghai, Ningbo and Nansha Australia/North and East Asia Trade Facilitation Agreement • Hong Kong Australia/South East Asia Trade Facilitation Group • Taiwan - Kaohsiung Australia/Fiji Discussion Agreement • Japan - Yokohama and Osaka Australia and New Zealand - United States Discussion Agreement • South Korea - Busan. Other ports are served by transhipment. Additionally, various TFA members provide exporters a wide choice of weekly sailings from Fremantle to ports across the north and east Asia region via Singapore.

australia/south east asia trade Facilitation Group (tFG) The primary objective of the TFG, which was registered in 1997, is to promote efcient and economic shipping service from Australia to south east Asia. The TFG is an association of member lines ofering Australian exporters varied shipping services from both the east and west coasts of Australia to points in Singapore, Malaysia, Indonesia, andrew Chittenden Thailand, Vietnam, Cambodia and Brunei. The scope of the agreement also covers south Asian and Gulf region General manager, destinations: Myanmar, Bangladesh, Pakistan, Sri Lanka, liner services UAE and Saudi Arabia. Telephone: 02 9266 9908 member lines [email protected] Please visit member lines’ websites for detailed service information. ANL Singapore Pty Ltd www.anl.com.au Hamburg Sud www.hamburgsud.com australia/north and east asia trade Orient Overseas Container Line Ltd www.oocl.com Facilitation agreement (tFa) service details The TFA, which was registered in May 1998, aims to promote efcient and economic shipping service from Ports serviced by TFG member lines. Australia to north and east Asia. The TFA is an association Load ports of member lines ofering Australian exporters a variety of services from both the east and west coasts of Australia. Sydney, Melbourne, Adelaide, Brisbane and Fremantle. Between the four member lines of the TFA, six weekly discharge ports services are deployed from the south and east coasts Singapore, Port Kelang, Laem Chabang and Jakarta. of Australia comprising 33 vessels that provide 312 voyages annually, with fast transit times and the most Other ports in south east Asia, south Asia, The Gulf and comprehensive port coverage in north and east Asia. Red Sea are served by transhipment.

12 Shipping Australia Limited Annual Review 2017 australia/Fiji discussion agreement - aFda per year with a comprehensive port range and optimum service details - west Coast usa transit times. The service is divided into two port rotation strings: Pacifc North West (PNW) and Pacifc South West The AFDA is an association of ocean carriers, whose (PSW). agreement was registered in 2000, providing liner services from Australia to Fiji. Member lines ofer three Load ports comprehensive services to shippers utilising nine vessels from Melbourne and Sydney to Suva. PSW weekly Melbourne, Sydney, Tauranga The main objective of the agreement is to provide PNW fortnightly Sydney, Melbourne, Adelaide, Auckland adequate, economical and efcient services from Australian Note: Fremantle and Tasmania are served via Melbourne. east coast ports to Fiji. Brisbane is served via Sydney (for imports to Brisbane) or member lines Tauranga/Auckland (for exports from Brisbane). Enquiries concerning specifc service details should be discharge ports directed to individual members’ websites. PSW Papeete (fortnightly), Oakland, Long Beach Hamburg Sud www.hamburgsud.com PNW Suva, Honolulu (every 6 weeks), Vancouver, Seattle, Neptune Pacifc Agency www.neptunepacifc.com Australia Pty Ltd Oakland Pacifc Forum Line (Group) Ltd www.pfnz.co.nz service details - east Coast usa The China Navigation Co Pte. Ltd. www.swireshipping.com The member lines provide a total of 78 sailings per year on their various services to the US East Coast. Hamburg Sud australia & new Zealand - united states operate a vessel sharing arrangement utilising 10 vessels discussion agreement (anZusda) on a weekly service with CMA CGM as slot charterers. ANL and CMA CGM separately ofer seven vessels providing ANZUSDA is an association of ocean carriers registered a fortnightly service. It is expected this last service will under Part X of the Competition and Consumer Act 2010 upgrade to weekly by early 2018. and also with the US Federal Maritime Commission. The carriers provide liner shipping services from Australia Load ports and New Zealand to the USA. The main objective of the agreement is to promote adequate, economical and Sydney, Melbourne, Port Chalmers, Napier, Tauranga and efcient direct services from Australia and New Zealand to Auckland. a range of ports on the west and east coasts of the USA, Note: Fremantle and Tasmania are served via Melbourne, and to other points and ports via transhipment. and some lines service Brisbane via Sydney (for imports) or member lines Tauranga or Auckland (for exports). Adelaide is serviced via Melbourne or Auckland. Wellington is serviced via Napier, ANL Singapore Pty Ltd www.anl.com.au and Nelson and Lyttelton via Auckland. CMA CGM S.A. www.cma-cgm.com discharge ports Hamburg Sud www.hamburgsud.com Savannah, Charleston and Philadelphia and other ECNA/ service details - west Coast usa Gulf ports via transhipment at key hub ports en route The member lines operate a vessel sharing agreement (Columbia for Hamburg Sud and Panama for CMA CGM/ between Australia and West Coast USA ofering 78 sailings ANL).

Shipping Australia Limited Annual Review 2017 13 state committee reports New South Wales

By MELWYN NORONHA, secretary

new south wales Freight and ports A copy of the of the report can be plan found at the following link: https:// www.amsa.gov.au/forms-and- The New South Wales Government has publications/about-amsa/publications/ released its draft Freight and Port Plan Self-Assessment-Reports/External- (the Plan), which forms part of Future review-Port-state-control-Regulator- Transport 2056. The Plan inter alia Performance-Framework-2017.pdf updates the 2013 Freight and Ports Strategy, and includes a Freight Report verifed Gross mass (vGm) – one which aims to periodically assess and year on review the strategy objectives. Seems like only yesterday that SAL’s Transport for NSW is well into the Technical Committee was actively consultation process and are seeking engaged with stakeholders in ensuring submissions on its new Freight and a smooth implementation of the VGM Ports Plan, which are due in March regime. 2018. It’s now over a year since the regime saL secretary on review panel of was introduced and whilst it has been amsa’s performance Framework generally quiet on this front SAL State 2017 - port state control related Committee continues to monitor VGM assessments declarations on a quarterly basis. It was privilege to be invited by AMSA VGM declarations (except Victorian to participate in an external review of International Container Terminal in Melbourne) must be completed and Three years have fown as secretary its Regulatory Performance Framework confrmed via 1-Stops’s Pre-Receival of the New South Wales State (RPF). Advice, prior to a container’s entry Committee. With Bill Rizzi as AMSA, as a Commonwealth regulator, to the terminal, to allow for sufcient chairman, it continues to bring to the is subject to the RPF and is required to time to enable planning the stow of the fore and address a range of issues in annually self-assess its performance vessel. an everchanging shipping landscape. against the RPF. The results of this At frst, some instances were occurring All meetings this year were held at self-assessment are validated by an Shipping Australia Limited’s (SAL) head approved AMSA, external stakeholder where such declarations were being ofce, with the last meeting of the year body (in this case the AMSA Advisory amended after entry into the terminal. held on 13 December 2017. Committee (AAC) and certifed by the As a result, terminals introduced a AMSA Board. procedure to allow amendments new south wales state Committee with an additional charge, which chairman – appointment to nsw On 12 April 2017, as part of the shipping lines are required to collect Freight advisory Council external review panel, SAL Secretariat from shippers. This introduced an attended and participated in a desktop additional administrative process On 9 October 2017, The Hon Melinda exercise examining performance Pavey MP, Minister for Roads, for lines. In order to ensure that this against the six key KPIs, which Maritime and Freight, appointed the practice did not become the norm, included the following: Committee’s chairman, Bill Rizzi to the committee, as part of its agenda, the New South Wales Freight Advisory • Regulators do not unnecessarily included quarterly verbal reporting Council. impede the efcient operations of from stevedores and shipping lines entities; of amendments to VGM declarations The New South Wales Freight after entry to terminal. It is pleasing Advisory Council provides expert • Communications with regulated to note that such occurrences of VGM advice to the Minister of Roads, entities is clear, targeted and efective; amendments are negligible. Maritime and Freight, and Transport for NSW on strategic issues impacting • Actions undertaken by regulators In addition, shipping lines provide efciency and productivity within the are proportionate to the regulatory risk feedback from any onboard AMSA freight industry. Membership to the being managed; Port State Control inspections with regard to VGM, especially for committee is for a 12 month term and • Compliance and monitoring instances where an onshore regulatory commenced on 31 October 2017, and approaches are streamlined and intervention may have precluded a the chairman attended his frst meeting coordinated; on this day. container from being loaded. No such • Regulators are open and transparent instances have been reported. With a seat on the council, SAL is in their dealings with regulated entities; optimistic that the chairman will assist SAL continues to advocate regulatory the Minister by providing strategic • Regulators actively contribute to the interventions of onshore premises advice on key issues in the shipping continuous improvement of regulatory where VGM calculations may originate, and port freight areas. frameworks. to add reliability to this regime.

14 Shipping Australia Limited Annual Review 2017 declaration of shipping channel Amendment (Dangerous Goods) Stoppages occurred on September 26, service at port of newcastle - Regulation 2016, discussions for which October 24, October 27, November 2, Glencore application to national commenced last year, is yet to be 8, and 16. Competition Council fnalised. This caused major disruption to The case of declaring the shipping It is to replace the existing dangerous shipping lines scheduling in Sydney channel as a service at the port of goods regulations legislation for port and had serious fow-on impacts Newcastle, continued into this year as areas, which currently sits under the around the coast of Australia, costing well. New South Wales Work Health and shipping lines to the tune of over Safety Legislation. In June 2016, the Australian AU$15,000 per day for delays. Competition Tribunal (ACT) declared SAL made a submission to the the shipping channel service in proposed legislation and at Functions Newcastle, under the relevant section subsequent meetings reiterated The Committee arranged three of Part IIIA of the Competition and concerns about the management of sensational lunches during the year. Consumer Act, from 8 July 2016 until dangerous goods (DG), especially 7 July 2031. This decision will allow for transhipment containers and the In June, the Hon Melinda Pavey, for disputes about the price of access associated quantum of penalties. Minister for Roads and Freight, hosted to channel services to be subject to the State Parliament House Luncheon. independent and binding arbitration SAL has conveyed concerns relating by the ACCC, with the potential for to the practical matters relating to The Minister was unavailable on consequent changes in prices and implementation of the proposed the day due a cabinet meeting, but revenue (depending on the outcome of regulation. her speech was delivered by Grant any arbitration). Matters raised and discussed include: Gilfllan, CEO Port Authority of New South Wales. Those who read this section of the • Review and simplifcation of magazine last year may recall that PANSW’s current DG management The biennial Newcastle Luncheon was Port of Newcastle Operations (PNO) system; held in August 2017, at the Newcastle appealed the ACT decision to declare Club. The event was sold out and the port’s shipping channel, and a full • In consultation with SAL, PANSW attracted over 120 shipping industry Federal Court hearing was held on 28- to develop guidelines for DG 29 November. The part hearing was management; executives. Sponsored by the Port adjourned, and stage judgement was of Newcastle Operations (PNO), • Improvements in the re-lodgement reserved. with support sponsorship from Ports for transhipment containers to avoid Authority of NSW and Newcastle On 16 August this year, judgement was penalties; Stevedores, the event had two guest made in the Federal Court of Australia • Difculties in establishing who speakers in, Geof Crowe, PNO and where PNO’s application for judicial the penalty should be assigned to, Aaron Johansen, CEO of Newcastle review was dismissed. This meant resulting in shipping lines being issued that the ACT’s order made on 16 June Coal Infrastructure Group (NCIG). 2016, declaring the service stands, fnes and required to follow up with consignor/consignee; PNO invited guests to a harbour cruise and commenced on 8 July 2016 and before the lunch, which was both expires on 7 July 2031. • Increase in dwell times for certain informative and enjoyable, and Geof This decision means that negotiations DGs after conducting appropriate risk confrmed the port’s standing as the assessments; with the Port Operator at Newcastle biggest coal exporter. over price and other terms of use will • Consideration in utilising the Aaron Johansen provided a report be subject to arbitration by the ACCC. stevedores Vehicle Booking System in on NCIG’s operations, highlighting DG management. But things didn’t end there. On the continued Asian demand for New 9 November 2017, PNO made a At the time writing the proposed South Wales’ superior quality coal. further appeal in the Federal Court regulation was yet to be fnalised in an attempt to stop the current and TfNSW have advised that the This year’s Christmas Luncheon pricing arbitration that the ACCC is regulations will be passed, probably in moved to Doltone House – Darling running, from progressing. The judge the frst half of 2018. Island Pyrmont. Held in early dismissed the appeal. December it was once again a sell out disruption to shipping in sydney – and a resounding success with over SAL understands that PNO could yet mua’s protected action again appeal the decision in the High 300 guests. Sponsored by NSW Ports Court. Shipping lines were forced to rearrange with the entertainment and prizes their rotation schedules to Sydney due sponsored by Maritime Container Glencore is progressing on obtaining a to an ongoing enterprise bargaining pricing decision out of the ACCC in the Services and Port Authority of New dispute between the Port Authority of South Wales respectively, members frst few months of 2018 and is also New South Wales (PANSW) and the pursuing that the pricing outcome be and their guests enjoyed Doltone Maritime Union of Australia (MUA). applied retrospectively, which means House’s fne dining. Shipping Australia a potentially very large re-payment will Since February 2017, PANSW have once again sponsored the table gifts be required by Port of Newcastle. been in negotiations with the MUA this year. members working on board pilot proposed ports and marine cutters. Negotiations came to a head The Chairman is extremely administration amendment when PANSW employees took a series appreciatively for the continued (dangerous Goods) regulation 2016 of protection actions and suspended support and interaction between by (new south wales) the use of the vessels to embark and all members at the meetings and their Transport for NSW (TfNSW) proposed disembark pilots in Ports Botany and input on issues that impact shipowners new Ports and Maritime Administration Jackson. and agents.

Shipping Australia Limited Annual Review 2017 15 state committee reports Queensland

By BILL GUEST, secretary

these challenges. Hopefully, 2018 will see more positive outcomes within the agencies efected. Albeit, with more amalgamations, that seems doubtful. This review has again focussed on Queensland issues, as those of national attention are included in the CEO’s report, from a peak body perspective. administration The Queensland Secretariat is grateful to State Committee chairman Geof Dalgliesh (‘K’ Line), for extending his term through 2017. A chairman is being sought to take the helm in 2018. Quarterly meetings of the State Committee were held, with specifc issues progressed While cargo through the port of Brisbane as required by the Steering Committee and improved by around 10 per cent, bolstered SAL Ball Committee. - International Ballast Water Convention, by strong growth in agricultural exports, Senior representatives from the Department including impacts on the Great Barrier Reef. there continued to be further rationalisation of Agriculture (Dept of Ag), Maritime - The Ship and Crew Engagement Program, among shipping agency representation. Safety Queensland (MSQ), Queensland undertaken by the Brisbane Mission to This as principals strive to maintain Department of Transport and Main Roads Seafarers (BMS) in the thoroughly justifed proftability in the face of competition and (TMR) and Aust Border Force (ABF) attend support of visiting seafarers. resultant downward pressure on freight all State Committee meetings and the Aust rates – especially in the container sector. Maritime Safety Authority (AMSA) have SAL not only strives to provide operational become regular participants. Input from support to members but equally The most recent initiative has been the encourages participation in networking all is valued and it’s accepted that each formation of the Ocean Network Express events which enhance both business and representative/organisation benefts from (ONE) container service which will operate social camaraderie – already positive within knowledge gained from these meetings as a ‘K’ Line, MOL and NYK joint venture. the local shipping community. ONE is expected to commence service in around broader industry issues. April 2018. In May, a full feld played in the annual SAL Most Queensland State Committee Shipping Industry Golf Day at Wynnum Golf meetings begin with presentations relevant Of further employee impact has been the Club, with funds distributed to assist the decision of Svitzer Aust to relocate their to the shipping industry. As such, and valued ministering work of the Brisbane east coast Customer Service Centres to aside from normal agenda subjects, Mission to Seafarers and Stella Maris Newcastle. members were kept fully informed on: Apostleship of the Sea. All understandable but with regrettable - Port of Brisbane Pty Ltd major projects, In October, the 26th annual SAL Shipping local concerns, and again SAL will do all including Channel Optimisation and the Industry Ball was held, with 220 enjoying a possible to assist members in coping with Cruise Terminal project. fun evening at Moda Events Portside. Each Ball commits to a shipping industry project and it is most pleasing that $15,000.00 was able to be raised for the Brisbane Mission to Seafarers, Ship and Crew Engagement programme. It needs to be recorded that around 65,000 crew visits are made yearly into the port of Brisbane yet, with short ship times etc., only about 11,000 make it ashore. Funds raised will enable volunteers to be trained (in conjunction with Stella Maris Apostleship of the Sea for a greater number of ship visits where seafarers, who may well feel the efects of isolation/depression etc., can be provided with welfare support regardless of religious beliefs. A very worthy objective. It is most pleasing that Ball attendees contribute to this programme, but the fnal fgure would not be possible without sponsorship support. Gratefully

16 Shipping Australia Limited Annual Review 2017 acknowledged are the Port of Brisbane Pty Ltd, Chalmers Industries, Patrick Terminals and Svitzer Australia. Additional support from Brisbane Marine Pilots, ACE Waste Group and PortGate Logistics was most appreciated. On 8 June, Denis Gallagher, who has spent a lifetime in the shipping industry, entertained attendees at a SAL luncheon with the theme, ‘The Sea: Its people, its challenges and its opportunities’. In many respects a precis of his book, ‘Put not your trust in Princes’. A great read and provides the message – ‘Consider the risks but give it a go anyway!!!’ Denis, now 75, has no plans for retirement and is active organising a coastal shipping service between Brisbane and Townsville, to commence by mid-2018. Watch this space and refer also to Coastal Shipping Queensland’s frst mega Cruise terminal within the SAL CEO’s report. at Luggage Point, which provides a natural At a SAL luncheon on 7 December, gateway to the Brisbane International Cameron Hall, PBPL Head of Strategy Airport. Site preparation works have and Innovation presented on ‘Handling commenced, with construction of the wharf Logistics Challenges and the Blockchain to begin mid-next year, and construction of Infuence’. There seems no doubt that the terminal to get underway in around 12 blockchain technology will not only reduce months. Operations expected in late 2019. the signifcant costs associated with export documentation but will enhance security In conjunction with Maritime Safety and provide those in the supply chain a Queensland (MSQ) and Brisbane Marine transparent view of a cargoes progress. All Pilots (BMP), the PBPL has undertaken a positive and progressive. Channel optimisation project to safely permit larger vessels to access the port. A Young Shipping Australia (YSAQ) is maritime safety Queensland (msQ) newer Under Keel Clearance (UKC) system presently becalmed and eforts are is already in place. port pilotage – Service Delivery Model. underway to encourage memberships and Taking into account the number of events. The Brisbane scene has limitations The extension of the proposed melbourne variables to be considered, the model within the age category required. to brisbane inland rail project to include remains a work in progress. MSQ remains port of brisbane pty Ltd Acacia Ridge to the port of Brisbane committed to take on a purely ‘regulator’ remains a priority for the PBPL. role. Meantime noted that port pilotage The Port of Brisbane Pty Ltd (PBPL) 16/17 The eighth annual pbpL safety 1 Forum and conservancy rates increased by 3.5 per results are contained within the Port of cent from 1 July. Brisbane Business Review 2017, which can took place at end August. Great presenters be downloaded from – www.portbris.com. (Shane Webcke this year) and signifcant Qships continues to function well, for au lessons for workplace and the home. managing ship movements. Readers are encouraged to contact the brisbane port welfare Committee Pleasing outcomes occurred, with 10 PBPL to claim an invitation for 2018. per cent growth in exports (gains from (bpwC) And fnally – congratulations to the PBPL agricultural products) and a record year The BPWC remains a pivotal link in for being named australia’s 2017 port of for containers exceeding 1.2 million TEU. coordinating many of the welfare services Specifcally noted should be - Queensland the year at the Australian Shipping and provided to visiting seafarers. This Government approval received to build Maritime Industry Awards. through the proactive participation of the Brisbane Mission to Seafarers and Stella Maris organisations. It is pleasing that the Fair Work ombudsman is now involved – especially in relation to the payment of seafarers on foreign ships carrying coastal cargoes. Ross Nicholls (Brisbane Marine Pilots) continues as BPWC chairman and SAL is pleased to be represented on the committee. Contact. Should this overview provide insufcient information I will be pleased to respond to any queries. Wishing readers the best of health and success in 2018. [email protected] (07) 3378 2477.

Shipping Australia Limited Annual Review 2017 17 state committee reports South Australia shipments previously handled through barges is increasingly undertaken in By ROD NAIRN, secretary the port of Geelong . Vehicle exports many European ports using their inland dried up as both Holden and Toyota waterways and resulting in removing ceased manufacturing cars in the State. heavy vehicles from arterial roads. In South Australia, Paul Paparella Increases in port charges were confned During the year four State committee (Asiaworld) continued to represent SAL at to CPI and will remain so over the initial South Australian Freight Council meetings meetings were held and four sponsored 16 years of the port’s 50 year lease. and Flinders Port User Group meetings until events. The frst of these events entailed it was discontinued earlier this year. No The projected increase in container a well-attended and popular golf Shipping Australia meetings have been held trafc poses signifcant challenges to tournament during March, which was during 2017, however these are planned to not only the existing infrastructure in the won by DP World. The second event resume in 2018. Other matters of concern port but also the distribution around and was also a sell-out, with Darren Chester, have been addressed through the Policy beyond Melbourne itself. Whilst there the Federal Minister for Transport and Council and Victorian State Committee. have been calls for the establishment of Infrastructure, speaking on proposed a new port (Baywest) to address these coastal shipping reforms. The third, a projections, the Infrastructure Victoria frst-time breakfast event, discussed report, released this year, put this a Blockchain and Innovation and was Victoria long way of (past 2055), this target will underwritten by Commonwealth Bank provide opportunity for return on the and Port of Melbourne. This inaugural investment made by the ports lease breakfast event was also a sell-out. The By CHARLES MASTERS, secretary holders. To meet the short to medium year was capped of with an up-market term challenge for Melbourne capacity, Christmas lunch staged at the historical the further development of Webb Dock setting of the private West Brighton Club, as a container port is proposed at the whose past membership included former end of the existing lease, for the recently Prime Minister Sir Robert Menzies, developed and commissioned roll on several Governors, a Federal Transport roll of facilities. The RoRo facilities are secretary and trucking magnate and proposed to be relocated to the Port of Melbourne Harbour Commissioner. Hastings at that time. Not surprisingly, with this venue it was another sell out. What appears more imminent and remains at issue, is the cascading of Taking our cues, particularly as it relates larger vessels with beams in excess of to staging the recent Blockchain event, 43 metres, onto the Australian trade, we propose in 2018 to explore and and the physical constraint preventing discuss the security shortcomings 48 metre wide vessels navigating the across the ports stakeholders, and Yarra to Swanson Dock. There seems the risks posed by the lack of a no short or medium term solution to comprehensive approach to cyber overcome this challenge. security. On this score we read that the boards of Australia’s top The port asserts the maximum annual publicly listed organisations remain volumes at Swanson Dock to be 4 million The retirement of the long-serving Phil hopelessly unprepared for dealing TEU, with the same volume projected Kelly OM, during 2016, and subsequent with cyberattacks. To complete the for Webb Dock. What remains unclear passing during January, left a signifcant education thematic, we will look is if these volumes can be achieved void in local knowledge and specifcally into the possibilities of AI (artifcial while staging containers on the terminals the secretariat role for Shipping Australia intelligence), as viewed through the eyes for any length of time. At present, the in Victoria. Additionally, there were a of large volume importers, operating terminals provide three working days number of retirements amongst member fulfllment centres to understand how free storage, yet emerging technologies senior managers who were active far technology can speed-up the overall could ofer “live supply chain logistics” participants in various sub-committees. supply chain. Notwithstanding, the SAL Victoria which would reduce the present State Committee is rebuilding and to multiple handling and staging of import an extent repositioning itself so as to containers to free up dock space and remain relevant in a world of disruptive increase throughput. technology. Shipping Australia was invited by the National issues are reported elsewhere Victorian Government Department of in this Annual Review and will not be Economic Development, Jobs, Transport repeated here. and Resources Infrastructure to provide input to a Freight Plan discussion The privatised Port of Melbourne paper. On this front, we highlighted completed the frst year of its lease, the possible use of barges to two or with container volumes holding up, three set locations around Port Phillip. underpinned by a bumper grain season The purpose being the reduction of earlier in the year. The Port additionally truck trafc in proximity to the port and succeeded in securing breakbulk along arterial highways. This use of

18 Shipping Australia Limited Annual Review 2017 Western Australia

By ROD NAIRN, secretary

The Western Australia State Committee strategic port planning now underway. ships. But for FPSOs, who store their continued to be chaired by Robert Boyce cargo onboard, the unforeseen implication Another sensitive matter was the decision (MSC) throughout the year, with the annual of the Bill may require that the crews of announced by Carnival in September, to meeting held at Fremantle Ports on 13 ships loading their cargo for export also withdraw their home ported ship from September. hold Australian working visas. Foreign Fremantle due to lack of available cruising crewed ships can import and export A change of Government in March saw destinations within reasonable reach. Only international cargos at Australian ports, a major change of direction for the west, a month later that decision was reversed so it seems incongruous that the crews of with plans for the privatisation of the port after some Government intervention and ships loading exports from an FPSO must of Fremantle immediately abandoned. announcement of cruise ship priority at hold Australian work visas. The news was received well by the some ports, dredging of Broome and berth shipping industry and the port, as it put improvements in Geraldton. Hull fouling is receiving greater focus from to rest the uncertainty which had been both shipping lines, as an impediment to Ofshore a clampdown by DIBP on all preventing decisions, such as lease tenure fuel efciency, and regulators, as a vector crew members on vessels supporting for stevedores, for two years. A less for marine biological contamination. This FPSOs being required to hold a class 400 positive outcome for the freight industry is a particular problem for the increasing working visa, has create a headache for was the new Government’s decision number of FPSO’s that remain anchored ship operators and agents. The Migration to also abandon the Perth Freightlink at sea for years on end. In-water cleaning Amendment (Ofshore Resources Activity) and reallocate much of the funding to has been seen as a possible solution, Bill was passed in the fnal days of the passenger rail upgrades. While this and in November this year an Australian- Labor Government in 2013, to ensure decision is seen as short sighted, it does designed system, by Fran Marine, was that support vessels for ofshore oil and clear the way for strategic port planning approved for trial. The trial was apparently gas platforms were crewed by Australian to consider all options and not to be successful and augers well for the future workers. These platforms ofoad their constrained by the planned Freightlink but the regulatory approval process for production cargos by pipeline to shore investment. An outer harbour development each instance of in-water cleaning remains storage and then export via international will certainly be considered as part of the a challenge.

Western Australia State Committee meeting at Fremantle Ports’ ofce, 13 September (chairman, Robert Boyce, third from left)

Shipping Australia Limited Annual Review 2017 19 young shipping australia New South Wales

Engagement, networking and potential

By STEPHEN WESTFIELD, chairman, YSA New South Wales

It has been another huge year for year’s Maritime Law Seminar was hosted New South Wales Young Shipping by HWL Ebsworth. Three speakers from Australia! 2017 was an important the frm gave insight on charter parties, ensuring contracts are fair for B2B and the milestone for YSA, with this year weight of liability in the industry. Lloyd’s marking its 10 year anniversary. List Australia magazine was welcomed The group has continued its to give a presentation on the changing of legacy by hosting events and the publication back to the Daily Cargo functions for “under 35 year olds” News, and the magazine’s rich history. in the maritime industry. In a time DCN publisher, Paragon Media, promoted of colossal change throughout the the Young Achiever of the Year award and those who attended included the eventual shipping world, YSA aims to keep winner, Alistair Sullivan, and 3 of the members informed, learn new nominees. Most recently, we fnished the ideas and network with others in year with the annual Christmas Party with the industry. strong representation from the numerous We started the year with our fagship, shipping lines and associated companies. On behalf of the YSA committee, we Shipping Industry Outlook event, at In addition to these important events, would like to thank all of those who have Parliament House. Speakers representing network gatherings throughout the year hosted YSA events and all attendees. WISTA, DP World and CEC Systems provided members the opportunity to 2018 is shaping up to be another big year addressed the crowd and gave valuable regularly catch up and share thoughts and to grow the organisation and continue to industry perspective and outlook. This ideas. foster the next generation.

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PACIFIC SPECIFIC WITH GLOBALShipping AustraliaCONNECTIONS Limited Annual Review 2017 21 sal voting member updates

The importance of Australia to AAL

By FRANK MUELLER, general manager, Liner Services, AAL

since the global fnancial crisis, the In terms of cargoes, the multipurpose series of MPVs, will allow us to carry breakbulk sector has not seen a heavy-lift sector is one of the most cargoes of ever-growing scopes sustained recovery. an oversupply demanding in the entire shipping and sizes. Take, for example, wind of ships and inconsistent community. The engineering, turbine blades. They’re already often demand have been the two most service, and operational demands greater than 90 metres in length, challenging issues. but the are second to none, and the constant and it’s likely that they’ll consistently noisily fuctuating prices of many emergence of new iterations of high breach the 100 metre mark in commodities have also frustrated value, complex cargoes means the coming years. These vessels that we must constantly refne and long-term infrastructure planning, upgrade our position in the market, improve our capabilities. For us, a and noticeably reduced the volume and ensure that we can deliver the large part of this evolution has been of fnal investment decisions on highest quality service for even the strategically refocusing our feet and biggest freight in the years to come. major projects. but, as drewry commercial operations, based on has noted, expectations for global feedback from customers towards Brisbane, Dampier, Fremantle, Gdp growth and a rising oil price a greater emphasis on mega-MPVs. Gladstone and Kembla are some are likely to lead to improved This move will give us specialisation of Australia’s most productive and investment. in an oversupplied market, and the historic breakbulk ports, and names A-Class, 31,000 deadweight-ton that we’re proud our vessels share.

AAL Dampier

22 Shipping Australia Limited Annual Review 2017 AAL Fremantle

In the last 12 months AAL’s unique defnitely contributed to increased celebrate Mission To Seafarers’s capability to combine fxed-route bulk commodity rates exporting from volunteer, Marcia Scholes, and liner services and tailor-made tramp Australia towards the end of Q3. This celebrate her 70 years of helping sailings has helped us to provide good news has been contrasted with mariners in the port of Brisbane. value-added transport solutions for some less promising fuctuations in As we head into 2018, we’ve demanding cargoes with exacting bunker prices in a steady upwards got bright hopes and high delivery schedules from Australia to trend. expectations. The future of global all four corners of the world. In October this year, we were shipping is tied to Asia’s resource In terms of trends, we’ve seen a proud to win the Lloyd’s List Asia demands, and as such Australia will slight increase in project cargo in Logistics Award. This was for a continue to be a crucial market for 2017. Though this trend and its major heavy lift cargo operation of AAL; one in which we expect to see volumes have been spread unevenly a giant electrostatic precipitator, or continued growth, building upon throughout the year. We saw a slow ESP, cargo for the Port Pirie project the sectors and services where we start in the frst couple of months, in Southern Australia that took place have built our reputation, as well as but volumes across the board have in the summer of 2016. According identifying emerging sectors, new picked up substantially since the start to the judges, AAL was chosen for trade routes and evolving customer of Q3. In particular, steel imports showing strong metrics in ofering requirements. have shown a clear improvement liner, semi-liner and tramp services since the middle of Q2. for high-value cargoes to and from, and within the Asia-Pacifc. This We believe that the market is award is our ffth since 2016, making currently reasonably steady AAL the most awarded multipurpose and strong, but this could be a carrier in the world. As our managing consequence of the usual increased director, Kyriacos Panayides, said contributions you’re likely to see at the time, “Such honours from during peak season. We’re also our industry peers attest to the seeing a good amount of what would professionalism and dedication of our typically be container cargoes, being shore and onboard teams.” transported as breakbulk freight; this is likely to be due to many of the main During the past year, we were line operators currently running at full also proud to host the Mission to capacity. It’s also worth highlighting Seafarers and Australia’s Channel that higher commodity prices have 9 aboard the AAL Shanghai, to

Shipping Australia Limited Annual Review 2017 23 sal voting member updates

a design solution that would allow for metres. quick construction with minimal labour As Happy Star was required to on site, relying on very limited shore assistance. discharge in open waters, a number of carefully prepositioned anchors were Their solution was to modularise the laid out to provide a mooring spread wharf into the smallest number of very that would allow the ship to remain large pieces, which could be fabricated stationary during lifting operations in the elsewhere, delivered by sea and various exact locations required. installed by the ship’s cranes. A fairly simple and common solution these Prior to the frst of the massive wharf days, except this one required seven jackets’ arrival, the sea bed was pieces, each approximately 38 metres prepared by a dredging contractor and long, 36 metres wide and 31 metres a number of locator piles were driven to high, and weighing nearly 700 tonnes, provide a guidance system for ensuring to be placed on the seabed, in open that each of the seven jackets were water, with a high degree of accuracy. placed in exactly the right spot. These legs would provide the support for six wharf deck sections, up to 55 The frst voyage commenced in August metres long by 25 metres wide, also to this year and the fnal cargo will be be delivered and installed by ship. completed and installed by the end of November. When Happy Star frst The designers approached BigLift arrived at Amrun just a row of bare piles The via their Australian agents, Asiaworld protruded from the water, some three Shipping Services, to see whether months later, a 300 metre long wharf, this initial design could be delivered complete with much of its ancillary in a practical, safe and cost efective conveyors, walkways, etc., awaits its way. Over a period of several months, ‘ultimate’ fnal commissioning works. BigLift’s in-house engineering department worked closely with the BigLift has been involved with many designers to produce a fnal workable wharf construction projects around wharf execution plan. Australia’s coast, over many years, The solution called for the cargo to be particularly in Western Australia’s iron ore ports. The Amrun wharf By ALAN MANN, director/ delivered in three consecutive voyages, performed by BigLift’s most technically however, marked a completely new State manager, Queensland, advanced vessel, the Happy Star. concept in wharf construction and took Asiaworld Shipping Services Arguably the world’s most advanced modularisation to the ultimate. BigLift heavy lift vessel, Happy Star provides are very proud of their contribution over 6,600 square metres of cargo in continuing to push the boundaries Shipping covers a very broad range of space, including an aircraft carrier- in developing Australia’s remote but diferent disciplines but transporting sized clear deck space 126 metres long mineral rich regions and will continue to cargo from A to B is the basic function and 26 metres wide; equipped with 2 do so for as long as Australia’s miners of nearly all varieties of the industry. cranes, each capable of lifting up to 900 and engineers keep coming with fresh For some however, getting from load tonnes and an enormous outreach of 41 challenges. port to discharge is almost incidental to their main function. This is particularly true at the top end of the heavy lift market, where very few ply their shipping trade. BigLift Shipping have been at the forefront of heavy lift innovation for over 40 years and are still at the leading edge of the small pool of operators capable of lifting over 1,000 tonne pieces. A recent case study was the Amrun project near Weipa, in Far North Queensland. Despite being a First World country, as we all know, Australia still has some very remote places, with Amrun being one of them. The location is environmentally pristine, close to sensitive cultural areas and can experience some extreme tropical weather events. The project required an export berth to be constructed in open waters and, due to the remoteness, the designers were tasked with fnding BigLift’s Happy Star

24 Shipping Australia Limited Annual Review 2017 Newcastle Stevedores, through its extensive service provider Our mission is to relationships and sub-contractor management plan can provide provide the best clients with a total logistics package, and is happy to arrange the stevedoring complete door to door movement of project freight. services in Australia, by offering thorough When you combine Newcastles hugely diverse range of facilities efficiency and with our levels of service, competence and experience, we believe bankable reliability, you will find a genuinely competitive option for all your imports and at very competitive exports through the astern Sea oard. prices.

Newcastle Steeores oung Street, Carrington NSW l PO O , CAINGTON NSW Ph Main l Mobile l mail geoffnewcastlestevedores.com.auShipping Australia Limited Annual Review 2017 25 sal voting member updates

After consolidation: how the new Hapag-Lloyd will shape the industry

By ESTEBAN PEREZ, managing director, Oceania, Hapag-Lloyd Australia Pty Ltd

between 2014 and end 2017 we have one of the youngest feets Asia and Northern Europe, as well nine of the top twenty carriers of the container shipping industry, as between Asia and North America will have disappeared (some still with an average age of 7.1 years. - and, of course, in the Middle East, under regulatory approvals) – The average size of the vessels is where we have become one of the either due to mergers or due to around 7,110 TEU - this is also a market leaders. insolvency. this has led to the sector record. Young and larger ships The merger will provide Hapag-Lloyd efect that the ten largest container bring more efciency. The average with considerable synergy potentials shipping companies now provide ship size of the joint feet is double and will sustainably increase the approximately 84 per cent of the size, larger than that of the world company value. We expect extensive the total capacity of the global feet. synergies from the optimisation of container ship feet. back in 1996 Through the merger, we now have the network structure, the operation the top 10 carriers deployed 45 per access to the necessary large vessels of a common ship feet, in general cent of capacity. that are used in transport between overhead costs and for the joint Hapag-Lloyd has been an active the Far East and Europe. These ships purchase of terminal, equipment and driver in this consolidation process. have comparatively low transport intermodal services. Efective 2019, In 2005 we merged with CP ships costs per container. Since Hapag- we expect synergies of US$435 and in 2014 with CSAV. The merger Lloyd now has such large vessels million per year. of Hapag-Lloyd and United Arab with a capacity of up to 19,900 Through the merger of Hapag-Lloyd Shipping Lines in May 2017 has TEU, we will be able to achieve and UASC, we are also signifcantly further strengthened Hapag-Lloyd´s considerable cost advantages - strengthening THE Alliance. THE competitive position. The company especially in the important travel area Alliance was launched on 1 April this is now in the top fve of a container between Asia and Europe. With the year and is extremely important in shipping industry which is continuing entry of these ships into the Hapag- consolidating our market position. to consolidate. Lloyd feet, we will not have to invest in new buildings in the coming years And it is a milestone with which Hapag-Lloyd has many years of and will thus help to ensure that we have signifcantly improved the extensive know-how in acquisitions. additional capacities are not built service ofered in the East-West We have proven in the past that up in a market characterised by trafc. Together with our partners we are able to implement mergers overcapacities. K-Line, NYK, MOL and Yang Ming, and the subsequent integrations we ofer fast transit times, a wide quickly, efciently and proftably. Through the merger we combine port coverage and ultra-modern The scalability of our platforms, our the skills and experience of Hapag- ships. A comprehensive network of market-leading IT systems, as well Lloyd and UASC in a way that will 32 services connects more than 75 as our efcient processes, help us help the company meet current and important ports and covers all the future challenges in the industry. The with a globally uniform Blueprint East-West trade routes. combined company has a transport organisation. And, of course, a capacity of around 1.6 million TEUs With strong shareholders, motivated very experienced international team and a market share of around 8 per employees, with our broad around the world. cent. The merger of Hapag-Lloyd experience and competences, we are The feet of the combined entity and UASC clearly strengthened our confdent to successfully meet the comprises of 219 ships. Together presence in the connections between future challenges of our industry.

26 Shipping Australia Limited Annual Review 2017 Image Katrinalawrence.com

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Our land is girt by sea

By DAVID PRATT, vice president, marine services Australasia, Inchcape Shipping Services

we are an island nation. there About 5 per cent of the Australian worlds global iron ore requirements, is no question about it! an workforce is involved in the transport with Port Hedland as the No1 globally island continent with over and logistics industry, and I am sure ranked port, in size, exporting over 50,000 kilometres of coastline; a many of you will have found, when 1million tons of ore per day. Similarly, population centred around our you mention you work in the shipping Australia supplies over 38 per cent shores, with a lifestyle centred industry, unless you are talking to of the worlds global coal supply, with on the sea and our coast. our someone involved in the industry, Newcastle being the world’s largest economy is driven by primary there is normally a blank look in export coal port. industries, and the shipping return. I may be being ungenerous, Despite these huge volumes, public industry enables international but why is there this limited awareness still remains limited, trade, which ultimately supports understanding and awareness of the with exposure mainly limited to the australia as a nation. importance of our industry? various coloured corrugated boxes on the backs of trucks, or seen Cargo trade through Australian ports on rail lines heading out into the is in excess of 1,300 million tons per country. Containerised sea cargo annum, and as a nation we can boast represents only approximately 3.5 of supplying over 50 per cent of the per cent of Australia’s sea cargo tonnage throughput, but it is critical in supplying manufactured items and goods nationally. Yet, our coastal trafc is limited with inland rail and haulage being the current method of distribution to regional coastal centres, or between major cities. Coastal license legislation has not been successful in protecting Australian seafarers’ roles. With a decline in Australian fagged vessels seen on the coast, and despite ongoing reviews of legislation, and ongoing debate, until a reformation of the legislation removing barriers to entry, the ability to increase coastal cargo, both bulk and containerised, will be limited. Environmentally our land truly does “abound in natures gifts, of beauty rich and rare”. With the Great Barrier Reef, Ningaloo Reef, Humpback whale migrations and other endangered wildlife often

28 Shipping Australia Limited Annual Review 2017 coming into direct confict with the and efciencies in key areas of our importantly raise awareness and shipping industry or its development. supply chain. How often do we see familiarity of our ports and the Any environmental impact must vessels at anchorage for extended operations required to berth and sail always be considered, but equally the periods, awaiting berth availability vessels. The line of faces peering environmental benefts of shipping or product? Similarly, the traditional over the ships rail watching as a are often neglected. Lower gaseous end of year congestion in container vessel comes alongside; gaining emissions per gross cargo ton of terminals highlights the inefciencies an insight on the vessel operations carbon dioxide and sulphur dioxide, that Australian ports can face. This whether that is towage, lines, pilotage are clearly evident compared to has been described, from an owner’s or shore side operations, can only be landside transport, and risks can representative, as “a frst world a positive for our industry awareness. be controlled for example, using country with a third world country professional pilotages through productivity”. The shipping industry from historical environmentally sensitive or high risk The cruise industry is a success story to present day is a fundamental areas. for Australia, bringing consistent year driving force in Australia’s economy. It’s only when there is a key shortage end growth in tourism and revenue, With continued investment and of goods that the focus turns quickly with ports actively competing to development of efciencies it will to the ports and the industry for get a larger share of the pie. The support our economy. In saying this, their improvement. Amendments increasing diversity and frequency of we must also grow and expand our this year to the Liquid Fuel industrial ports in cruise schedules public awareness of our industry, Emergency Amendment Bill 2017 brings new economic opportunity highlighting our successes, the clearly indicated the concerns from and support to regional locations, challenges and the opportunities Australia’s lack of self-sufciency with new port calls and infrastructure it brings. We work in an exciting on fuel oil, and the importance of developments in places such as industry (well I think so!) and if we maintaining international bulk imports Townsville, Eden, Port Hedland. don’t increase the understanding of to support local demand in case of Cruise lines bring not only increases the shipping industry in its entirety, global disruption. in tourist dollars to both major and there may be no opportunity to As an industry, we lack capabilities remote communities, they also “advance Australia fair”.

Shipping Australia Limited Annual Review 2017 29 sal voting member updates

Connected: shipping’s digital future

By GERARD MORRISON, managing director, Maersk Line Oceania

The global supply chain is jam-packed and reacting are over. Shippers can now the internet. with physical assets. From a 20,000 TEU monitor and make decisions about their mega-ship, to a shuttle carrier moving supply chain as their cargo moves, as well The solution based on blockchain boxes around the terminal, to a 40 foot as use the data to study and improve their technology and built by IBM and Maersk, reefer container carrying fresh produce half entire supply chain. will ofer an open industry platform for way round the world, each asset has a part containerised shipping, connecting Whether it is frozen beef, citrus fruit or to play in the everyday dispatching and the entire supply chain ecosystem. All grapes, perishable commodities are time delivering of containerised trade. participants of the supply chain will be sensitive and require precise temperature able to securely and seamlessly exchange Today, most of these assets are best and atmospheric conditions. If the power shipment events in real time, whilst described as dumb and disconnected. goes of on the reefer container or a digitised and automated paperwork flings But what if all these data sources on the malfunction occurs and it is not discovered will enable end users to securely submit, diferent machinery and containers could quickly enough in the terminal, on the truck stamp and approve documents across be linked to provide an overall picture? or ship, an entire container of goods can be organisational boundaries. What could real-time data collection, spoiled. not just for containers, but for vessel In the frst six months of its launch, RCM GTD is undergoing testing across trade operations, like port stays, do to improve has already started to reap the benefts, lanes in Africa, Europe and the US. When vessel turnaround times, and ultimately seeing a signifcant reduction in cargo adopted at scale, the solution has the entire supply chains? damage. Some 30 per cent of the food potential to save the industry billions of Great news! There are some very positive produced by the world is lost each year, dollars. signs that the digital transformation of the and smart reefers have a part to play in the future waits for no one supply chain has started to take shape. tackling this, improving cold chain stability Several innovation initiatives involving and reliability in a globalising food market. Looking at the exponential increase in machine-to-machine (M2M) technology are technology solutions aimed at addressing Global trade digitalisation set to transform more and more transport evolving customer needs, it’s clear that assets to become smart and connected. The changing digital landscape is not shipping’s digital future is already in solely focused on connecting physical data driven supply chain visibility full motion – and it will not wait for the assets. The paperwork and processes vital industry to catch up with the constant In 2017, Maersk Line launched Remote to global trade are currently undergoing advances in eCommerce and supply chain Container Management (RCM), which a groundbreaking digital end-to-end management. involved equipping our feet of over 260,000 transformation. refrigerated ‘reefer’ containers with simple The development of smart assets and In 2014, a team of Maersk IT specialists M2M technology - a modem, GPS, wireless digital supply chain integration holds a began following containers of avocadoes SIM card and satellite link. Deployed on a huge potential for Maersk Line and we and roses from Kenya to the Netherlands. global scale, RCM is changing the concept have a clear ambition to lead the digital The team’s goal was to document - in order of supply chain visibility, and the costs and transformation of the transport and logistics to digitise - the maze of physical processes opportunities associated with providing it. sector. and paperwork that impact every shipment, With RCM, both customers and Maersk and are a costly drag on cross-border It will take several years to complete all Line have complete access to the trade. the steps, but eventually our vessels reefer’s current location, temperature and This work has been the basis for the and containers and other assets will be atmospheric conditions inside, as well as ongoing creation of what’s initially being generating terabytes of data on operations the power status, at all times and no matter called a Global Trade Digitalisation (GTD) and activities in real-time, and machines where in the world. solution that will move all administrative and people will be talking to each other, RCM introduces an unprecedented level processes and transactions associated learning things about our operations and of visibility and reliability into shippers with one container shipment - more than our customers that we can’t even imagine supply chains that will make their business 200 interactions, involving more than 30 now – and they’ll be available as products, better. The old days of waiting, hoping people, according to Maersk research - to for download.

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Why safety comes frst for Wilhelmsen Ships Agency

By ADRIAN PETERSON, general manager, East Coast Oceania, Wilhelmsen Ships Services

safety is not something that most two days are the same, just as no two the only constant is risk people give a lot of thought to day- ports, or vessels are the same. In Because of these factors, boarding to-day. however, for the maritime addition, shipping agents often fnd vessels remains high risk, providing industry, it is critical to our daily themselves working in various places the highest potential for accidents routine. where they are reliant on each person in the entire shipping industry. The role of a Shipping Agent is and company also doing their part to Unlike an ofce, where risks can be incredibly varied, bringing new ensure a safe working environment managed relatively easily, a shipping challenges each and every day. No for everyone. agent boarding a vessel is exposed

32 Shipping Australia Limited Annual Review 2017 to working environments that they have no control over. From weather conditions and tides, to changes to crew, varying standards and layouts of vessels, along with diferences in port facilities, the only constant is risk. The shipping agent is typically presented with a number of potential risks when boarding a vessel. Boarding vessels in a variety of ways, for example via the quayside, ship loader, gangway, launch, pilot ladder and even via ramp, each method presents a possible safety risk which must be recognized and managed. developing a safety culture For these reasons, risk controls to protect shipping agents should be high on the agenda. As an example, Wilhelmsen Ships Agency has implemented several key risk control measures, from minimum personal protective equipment (PPE) standard requirements, safe work procedures and training for boarding of vessels. Removing agents from unsafe environments includes the mandatory requirement for all launch boat providers to have a minimum of two crew onboard. The safety of shipping agents starts with dedicated training and education programmes and the provision of PPE. However, more than anything else, an active and ingrained safety culture, within an organisation, most companies now have their own to be incredibly efective in reducing benefts and helps protect employees QHSSE programmes. Wilhelmsen lost-time incidents. However, for the most. At Wilhelmsen, employees Ships Agency operates a TAKE 5 a TAKE 5 programme to work, the are empowered with a ‘Stop Work safety programme, complemented by culture of the company must support Authorisation’ mandate which certifcation in OHSAS18001 Health it and people need to understand authorizes them to stop any work and Safety Management Standards. and appreciate its value. In our that does not comply with their Helping to create a culture of safety, opinion, the maritime industry as a policies and rules, with absolutely no the TAKE 5 programme empowers whole, must take up the challenge repercussions to them. shipping agents to review conditions presented and embrace the culture of safety whole-heartedly. The role safety is a business necessity and make the right decisions when it comes to safety. Safety should not of the agent and the potential safety With a greater focus on safety across be a hindrance to the workplace, risks they face daily, have been the maritime industry, owners and it should be an enhancement. ignored for too long. That is why it is charterers view their agent as an Applying the TAKE 5 process, the so important that companies provide extension to their operations, so it is agent simply has to follow fve quick educational programmes empowering vital that the agent meets the required and easy steps; Stop and Think, their employees with the knowledge safety and compliance standards. Identify, Assess, Control, Proceed. and capabilities to make sound, safe They will not use agents that refect Safety quickly becomes a part of decisions at work. poorly on their own brand and everyday thinking and employees and Ensuring everyone is safe at work reputation. Quite simply, they want companies both beneft. is the key objective. All parties an agent they can trust will deliver involved in managing a vessel port services safely and in the right way. time for the entire maritime call have an important role to play; industry to taKe 5 The increased focus on safety is from the vessel owner, to the crew, evident in the number of contracts A fxture in the mining and resource local service providers and of course, and tenders that now start with industries for many years, TAKE 5, the shipping agent. Your safety, our discussions on QHSSE. To this end, or similar programmes, have proven priority.

Shipping Australia Limited Annual Review 2017 33 commonwealth agencies Department of Immigration and Border Protection

Steady sailing for Home Afairs and the Australian Border Force

By MICHAEL OUTRAM, acting commissioner, Australian Border Force

it has been a busy 12 months In July last year, Prime Minister, the border now and into the future. in the maritime space for the Hon Malcolm Turnbull MP, announced The ABF continues to be Australia’s australian border Force (abF). signifcant reforms to Australia’s customs service, with trade the announcement of the home national security arrangements, facilitation a key priority. Keeping afairs portfolio, our ongoing work including the establishment of a trade facilitation and traditional to increase our preparedness new Home Afairs Portfolio to better customs functions together, and for threats across our maritime align Australia’s intelligence, law bringing them alongside Australia’s domain, and the facilitation of enforcement and security functions national security agencies into the streamlined trade and travel, by bringing key agencies and one portfolio, has enhanced our means our partnership with bodies—including the ABF—under ability to identify and focus our eforts industry is as crucial as it has ever one umbrella, ensuring we are best on those consignments and people been. placed to counter threats at our who represent the highest risk. This, in turn, has meant we are able to ensure the seamless facilitation of legitimate people and goods. The establishment of a Home Afairs Portfolio—including the Department of Home Afairs—highlights the importance of safeguarding our border in the broader national security context. Strong national security enhances trade and protects investment, and allows business to reap the benefts of globalisation. A secure border is a prerequisite for trade confdence, and security and facilitation are bound together as complementary and indivisible parts of a robust customs system. Trade modernisation initiatives, such as the Australian Trusted Trader (ATT) programme, the signing of Mutual Recognition Agreements with Australia’s top trading partners, and

34 Shipping Australia Limited Annual Review 2017 our commitment to identify options for a single window for international trade, will continue under the Home Afairs Portfolio. As always, our collaboration and relationships with industry stakeholders are crucial to delivering strong border protection for the nation, and we’ll continue to use our many fora, events and advisory groups to stay connected with our stakeholders. In July, we hosted our fourth annual Industry Summit (the Summit) in Melbourne. The Summit is our premier annual event for senior industry and Government representatives to collaboratively discuss strategic immigration and border protection issues. Delegates discussed trade modernisation and explored Government and industry strategic planning for the future of international trade to 2025, and how Government and industry can work together to address impending challenges. These challenges include the extent to which Government should regulate industry or leave industry to self- regulate, and the challenges of modernising trading processes in a complex environment. Delegates also discussed travel modernisation, what the traveller pathway will look like beyond 2020, and how to address current barriers to create a truly seamless traveller experience. We are currently progressing a our earlier work with the cruise ship port authorities and customs brokers, number of action items from the industry towards increasing safety on to remind them of their obligations summit, including consulting industry cruise ships. In March 2017, a trial in relation to cargo terminals policy. in developing a safe and secure future of new high-speed facial recognition There are a number of physical supply chain for Australia, continuing cameras was demonstrated at the security requirements that cargo to promote incentives such as National Sea Passengers Facilitation terminal operators must meet at sea the ATT programme, building our Committee meeting. We worked cargo terminals, to ensure the security biometrics capability, and consulting closely with Carnival and Royal of goods entering the country. For with industry to explore ways to cater Caribbean cruise lines to analyse, more information on this, visit www. for diferent traveller cohorts. design and run a series of provisional border.gov.au. clearance proof-of-concept trials. In September, the ABF’s Maritime The ABF is dedicated to protecting Border Command organised the The trials evaluated the feasibility our maritime domain, securing our inaugural Maritime Counter-Terrorism of leveraging cruise ship operators’ borders, and facilitating streamlined (MCT) workshop, with 66 Australian processes to support a more trade and travel—and this dedication Government, State and Territory streamlined border clearance will remain just as strong within police jurisdictions, oil and gas, and experience for travellers. We are the Home Afairs Portfolio. In the cruise ship industry stakeholders in continuing to work in partnership with complex and ever-evolving global attendance. The threat of ofshore industry and other border agencies, environment we operate in, we maritime terrorism in the Australian including the New Zealand Customs recognise that change is necessary, Maritime Domain was the key issue Service, to progress these initiatives and the importance of our relationship discussed, focusing on the need to and identify further opportunities and partnerships with industry cannot develop structured and coherent to develop shared capabilities to be overstated. We look forward to maritime counter-terrorism responses, enhance traveller facilitation and our ongoing work and collaboration particularly in relation to capability, border security measures. with industry to ensure we are exercises and information-sharing. We are also working further with ready to meet the challenges and The MCT workshop complemented industry, specifcally cargo handlers, opportunities of the 21st century.

Shipping Australia Limited Annual Review 2017 35 commonwealth agencies Department of Agriculture and Water Resources

pre-arrival documents, and requests for and ornamentals, which makes them services like waste removal and sanitation potentially devastating to Australia’s certifcation. It also allows them to check agricultural industries. The stink bugs are the status of information submitted to the most likely to shelter in vessels and cargo department. headed for Australia between September In combination with initiatives like the and April, when the weather is cool in the Vessel Compliance Scheme (VCS), we’ve northern hemisphere. seen a noticeable increase in compliance Following a signifcant outbreak in 2014, with Australia’s biosecurity requirements. additional targeted control measures So much so that in July this year, MARS have applied to specifc goods from won the 2017 Public Sector Innovation the United States during the peak Award (Digital and Data category) for season each year. Thanks to support fundamentally changing the way vessel from the shipping industry, importers, arrivals are managed in Australia. This is brokers, port authorities, and transport an achievement we proudly share with the logistics providers, this has been highly Australian shipping industry, who worked successful. We have extended the closely with the department to make the measures this year to similar goods system a success. from Italy, where this pest has spread MARS also supports Australia’s new signifcantly. By LYN O’CONNELL, deputy ballast water and sediment regime, secretary - Biosecurity, which was implemented on 8 September Some other improvements on the horizon Department of Agriculture and 2017. Australia’s new legislation enabled for 2018 also refect our commitment to taking a risk-based approach to Water Resources ratifcation of the International Convention for the Control and Management of biosecurity management. Following Ships’ Ballast Water and Sediments (the a trial of clearing ISPM 15 compliant Convention), and makes us part of a shipborne dunnage without the need global community of over 50 countries, for treatment or destruction, with two working together to combat the spread of shipping lines in Melbourne, we expect to Industry marine pests and diseases. make the process available to other ports progressively next year. In the last 12 months, we’ve consulted widely about transition to the new We’re also changing import requirements partnerships regime. The next stage of implementation for used machinery and mined/chemical will involve collecting information and fertiliser in 2018 to reduce the need for strengthening feedback from vessels to advise the departmental intervention, and simplify International Maritime Organization during administration requirements. the experience building phase of the Convention. Finally, we’re working with the biosecurity Department of Immigration and Border Onshore, we’ve recently published the Protection on joint regulatory standards First Point of Entry Biosecurity Standards for intermodal facilities. Increasing the to agriculture.gov.au. They explain the use of these facilities in rural areas could with trade volumes and international procedures, facilities and infrastructure passenger movements forecast to be a solution to wharf congestion and that seaports must have to manage cargo clearance times, but we don’t want double by 2025, the department is biosecurity risk, and maintain frst point to do so at the expense of biosecurity committed to working smarter, and of entry status under the Biosecurity Act in these areas. In 2018, we’ll work with fnding new ways to protect australia 2015. from biosecurity risks. industry, including Approved Arrangement To assist with meeting new legislative and Trusted Trader programmes, to in the past year, we’ve invested in requirements, we’re assessing existing consider options for managing biosecurity technology and partnered with industry frst points of entry against the standards, risk if we were to adopt this approach in to more efectively protect australia to assist operators to understand any Australia. from unwanted pests and diseases. changes required prior to June 2019, Thank you for your assistance during An example of this is the development of when transitional arrangements expire. 2017 to help protect Australia from the Maritime Arrivals Reporting System We are also developing online resources unwanted pests and diseases. (MARS), which is an online portal that to support seaport operators to educate facilitates two-way communication their staf about pests that are common in more information between vessels and the department. the wharf environment. • Visit agriculture.gov.au Since implementation of MARS in 2016, A pest of particular concern is the vessel masters and shipping agents Brown Marmorated Stink Bug. They • Phone 1800 900 090 or have benefted from easier lodgement of are known to feed on around 300 types +61 3 8318 6700 (from of plants including fruit, vegetables outside Australia)

36 Shipping Australia Limited Annual Review 2017 More than 100 years of ports and logistics experience

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Shipping Australia Limited Annual Review 2017 37 commonwealth agencies Department of Infrastructure and Regional Development

A review of 2017

By JUDI ZIELKE, deputy secretary, Department of Infrastructure and Regional Development

Anyone familiar with the design of of World Maritime Day. Celebrations for example, we were pleased to attend The Canberra will know that the physical this day were hosted by the Hon Darren Tasmanian Shippers Forum in February, landscape, and the political landscape, Chester MP, Minister for Infrastructure and which had 120 attendees comprising both revolve around Parliament House. Transport, and arranged by the Australian freight shippers, freight forwarders, Maritime Safety Authority. shipping lines and port operators. This year, legislation relating to shipping was introduced in both the Autumn and The minister used World Maritime Day We used this opportunity to fag our Spring sittings of the Parliament, and the as a suitable occasion to announce intention to develop a National Freight and Department of Infrastructure and Regional that Australia is seeking to move from Supply Chain Strategy, and work on this is Development was involved in advising Category C to Category B on IMO’s now well underway. A report on a formal Government on both of these. governing council, noting that we are inquiry process to inform the development the world’s largest bulk commodities The Protection of the Sea (Prevention of the strategy will be provided to the exporter and have search and rescue of Pollution from Ships) Amendment Government in March 2018. responsibilities for one-tenth of the surface (Polar Code) Bill 2017 was introduced of the Earth. Sadly, crowded places continued to in February and passed both Houses of be targets for terrorists during 2017. Parliament by May, becoming law on 19 I also want to note our ongoing policy Signifcant work has been undertaken by May. work in response to the Harper Review’s the Australian Government on this issue, recommendation on Part X of the This legislation implements Australia’s including the release of Australia’s strategy Competition and Consumer Act 2010. international obligations stemming from for protecting crowded places from The department has been engaging with conventions adopted by the International terrorism, in August. To complement this stakeholders and advising the minister Maritime Organization (IMO), noting that strategy, in a world frst, the department around planned changes to the role of Australia has a strong national interest released guidance for seaports to assist the Registrar for Liner Shipping. We in Antarctica, including in the safety of are seeking to ensure that users of liner with protecting people within the terminal shipping and the environmental protection shipping continue to have access to area. This includes expert technical of Antarctic waters. regular and reliable services. advice, examples of international best Indeed, as the world’s only nation that practice, case studies and resources to In the Spring sitting of the Parliament, in is also a continent, we have a special help the operators of passenger terminals September, the minister introduced the obligation to be actively involved in the at seaports to implement security Coastal Trading (Revitalising Australian work of the IMO. measures to mitigate against attacks. Shipping) Amendment Bill. The guidance is available on the Ofce of From a policy perspective, the work of At time of writing, the provisions of the Transport Security (OTS) Govdex portal. IMO’s Marine Environment Protection Government’s coastal trading bill had been Committee (MEPC) on a strategy to As you may know, in the near future OTS referred by the Senate to the Rural and reduce international shipping greenhouse will transition into the new Department Regional Afairs and Transport Legislation gases, is a priority for the department of Home Afairs, to bring together Committee, for inquiry and report by 4 this year, and departmental ofcials Australia’s immigration, border protection, December. I note that Shipping Australia attended negotiating sessions in July law enforcement and domestic security has made a submission to this inquiry. and October. The IMO’s MEPC also agencies into a single portfolio. The considered the implications of the Ballast Dialogue with industry on a range of department will continue to have ongoing Water Management Convention, which current issues is part and parcel of the contact to ensure we continue to meet came into force in September, just ahead ongoing work of the department. For industries needs.

38 Shipping Australia Limited Annual Review 2017 Proen l Collaoratie l Safe

EPOWEE B EPILOT www.risanepilots.com.au

Shipping Australia Limited Annual Review 2017 39 state transport and logistics New South Wales

Shaping the future of freight in New South Wales through the New South Wales Freight and Ports Plan

By CLARE GARDINER-BARNES, deputy secretary, Freight, Strategy and Planning, Transport for NSW

The New South Wales Government is opportunities. and the collection and analysis of data, will asking the shipping industry to get involved also provide insight into where efciency It is underpinned by six priority actions: and work alongside us in the development and competitiveness can be enriched. of a new Freight and Ports Plan. 1. Strengthen freight industry and government partnerships by identifying The role of the Government, in this Freight contributes $66 billion to the New opportunities to work together to harness context, will be to support and advocate South Wales economy annually. In Greater opportunities and address challenges for the development of technologies which Sydney, Freight volume is expected to to improve freight outcomes for all improve freight operational activity. double, and grow by more than 25 per cent stakeholders; in regional New South Wales, over the next Alongside these new challenges are 40 years. 2. Increase access for freight across opportunities, and the need for dedicated the road and rail network by improving freight lines is crucial to seizing many Since we delivered the New South Wales reliability of freight movements and of them. There are also policy and Freight and Ports Strategy in 2013, reducing journey time which will ultimately infrastructure investment opportunities evolving technology, urban encroachment, reduce the cost of moving goods; to deliver modal switch, which has the congestion, journey and access times, potential to reduce freight costs and road evolving safety considerations and 3. Protect existing freight precincts network congestion by encouraging more increasing demands on network capacity and reserve potential freight corridors to containers and manufactured goods on rail, has presented new challenges when improve efciency of the supply chain; managing the freight task. and fuel into pipelines. 4. Facilitate the introduction of To address this, we’ve built on the existing technologies that reduce freight costs and Further investment in rail infrastructure and strategy and are now working with industry impacts, including utilisation of real time increased intermodal capacity play a critical stakeholders to develop a new New South data and co-development of solutions with role in the transport of containerised freight, Wales Freight and Ports Plan, to provide industry; which is forecast to increase substantially a more efcient freight network to help over the next 30 years. 5. Reduce the regulatory impact on ensure the movement of goods in a safe industry to minimise the cost of moving With the ever increasing demand and environmentally sustainable manner, goods; and for construction materials for major providing positive outcomes for both infrastructure and residential development, communities and industry. 6. Ensure safe, efcient and sustainable there are opportunities for coastal shipping freight access to places to meet the needs The plan will align with Future Transport to play a role in facilitating a least cost of our growing cities. 2056, a strategy that sets out the vision pathway. and directions for transport outcomes over The draft plan has also identifed key trends The draft plan provides a unique the next 40 years. This will translate, at a driving and impacting freight demand. For regional and metropolitan level, into service example, trends in service expectations opportunity for industry stakeholders to outcomes, and will guide investment in that include consumers requiring access comment on the future of freight and ports the infrastructure needed to meet these to goods 24/7 and faster delivery times. in New South Wales, particularly in relation outcomes. It will include services and This is against a background of population to the impact of technology on the sector. infrastructure plans for regional New South growth which will increase consumer Its success relies on all of us working Wales and Greater Sydney. demand and increase the freight task. together to explore innovative ideas that provide real beneft to the freight industry The Draft Freight and Ports Plan reinforces Improvements in vehicle utilisation and and the people of New South Wales. the importance of New South Wales route optimisation, with real-time trafc freight and ports to the national economy, information, will help to decrease freight Head over to https://future.transport.nsw. ensuring New South Wales’ systems are delivery times and ease congestion, while gov.au/react-feedback/supporting-plans/ well positioned to respond to emerging utilising robotics and automated vehicles freight-and-ports-plan/ to submit your national and international markets and to improve the efciency of existing assets feedback now.

40 Shipping Australia Limited Annual Review 2017 state transport and logistics Queensland

The SPD Act prevents disposal of capital operated by 70 major ports including dredge spoil from ports into the Great Rotterdam, Hong Kong and Shanghai. Barrier Reef World Heritage Area, and The new software will provide our VTS stops development of new ports in the operators the cleanest and most up-to- area. date picture of vessel trafc they have We are also leading port master planning, ever seen and help predict and warn of working closely with port authorities, local potential problems, enabling authorities governments and other key stakeholders, and ships’ captains to plan safer journeys. for the priority ports of Gladstone, Abbot No safeguard against marine incidents Point, Townsville and Hay Point/Mackay, in our ports is more important than the as required under the SPD Act. knowledge and skills of our marine Another key focus for TMR is the pilots, and the implementation from 1 development and implementation of the March 2017 of a Continuing Professional Maintenance Dredging Strategy and Development programme for the State’s development of Guidelines for Long-Term port pilots is an investment in their Maintenance Dredging Management continuing expertise. The programme Planning for Great Barrier Reef World overhauls the framework of options Heritage Area Ports. The Strategy for marine pilots, having attained their provides a transparent and consultative framework for sustainable, leading- Master Class 1 Certifcate of Competency, practice management of maintenance to access ongoing training to equip dredging at Great Barrier Reef ports, and them with the skills to respond to the Queensland so assisting helping secure the reef’s challenges they face daily. health and resilience. But even with the best technology and maritime As part of TMR’s commitment to ensuring skills, that oldest of mariners’ adversaries port sustainability, we’re working with – the weather – will always impose Queensland’s ports as they continue additional challenges. This was the case developments investigations to further diversify trade, in Queensland this year when Tropical while planning for key infrastructure Cyclone Debbie wreaked havoc with required to service key growth sectors. By NEIL SCALES OBE, maritime infrastructure, from its strongest director-general, Transport One example of this is the Cairns point of impact in the Whitsundays, south to Rockhampton and south to the New and Main Roads Shipping Development Project, which will improve shipping access to the port South Wales border. of Cairns through dredging of Trinity Across the impacted coastline much Inlet. Another is the Townsville Channel of TMR’s marine communications Capacity Upgrade, valued at $193.5 2017 has been a very busy year for infrastructure, particularly around the million, which will widen navigational Transport and Main Roads (TMR) in Whitsundays, was destroyed or rendered channels to facilitate larger vessel access pursuing improved safety in our ports and inoperable. That posed considerable to the port of Townsville, and represents shipping lanes, while protecting the Great challenges in getting shipping, both large Barrier Reef. the frst component of works for the larger Townsville Port Expansion Project. and small, moving safely again. However, In the 2016-17 fnancial year, 336.8 million TMR quickly repaired communications tonnes in total trade and more than Queensland’s Minister for Main Roads, equipment at Hayman Island, Whitsunday Road Safety and Ports, Mark Bailey 19,000 vessel movements were handled Island and Mount Blackwood near MP, recently announced a $36 million within Queensland ports, while the value Mackay, thus reactivating the port and investment to upgrade Maritime Safety of overseas exports alone was $65.9 REEFVTS systems that are critical to Queensland’s (MSQ) ship tracking billion. technology, with a Vessel Trafc Services shipping, while we also attended to VHF Foremost on our agenda is the Decision Support Tool (VTS-DST) that will and UHF radio equipment relied upon implementation of port-related actions replace the REEFVTS shipping control by the local tourism feet and others. under the Reef 2050 Long-Term system that has protected the Great Deploying a number of additional MSQ Sustainability Plan, a comprehensive Barrier Reef since 2004. ofcers within the Whitsundays region before the cyclone hit, assisted with the framework protecting the Great Barrier A contract to design and install the recovery works as 90 aids to navigation Reef and developed by the Australian and system, which will be implemented in a Queensland governments in consultation staged approach over the next two years, were damaged or destroyed and 92 with key stakeholders. was awarded to Australian Maritime vessel where left stranded or wrecked. A vital step in fulflling the Queensland Systems Group and SAAB Technologies Hydrographic clearance surveys Government’s commitments under the Limited, following a global competitive undertaken by TMR at the major ports Reef 2050 Plan, is the Sustainable Ports tendering process. and boat harbours along the afected Development Act 2015 (SPD Act), aimed At the core of the new VTS-DST will coastline, were also crucial in getting at balancing protection of the reef with be the V3000 trafc management and Queensland’s maritime industry back to development of the State’s major ports. information system, built by SAAB and work, within a short space of time.

Shipping Australia Limited Annual Review 2017 41 ports

A stronger nation needs a strong supply chain

By MIKE GALLACHER, chief executive ofcer, Ports Australia

australia, a maritime nation girt by little thought outside the sector is given sector experiences further growth into sea, a nation that has historically to the interaction between the various the future, we must work together with ridden on the back of sail, as stages of the supply chain and the all other aspects of the chain to ensure much as the sheep. and whilst ever-increasing challenge to improve there are no weaknesses. demand for goods, both domestic efciency in delivery. and internationally produced has At the foundation of our ability and Arguably, this isn’t a bad thing, we increased, little is widely understood success is the experience and don’t do what we do for a pat on how such variety and access is knowledge that exists in the maritime the back. Consumers have come achieved, in a country so large. sector. For the many individuals I have to expect immediacy when making met, this isn’t simply an occupation; Many facets of our sector exist behind choices, and our sector has risen to it’s a school of thought and a way of the challenge and will continue to seek the curtain of logistics. As a container life. We have a huge job that demands ship approaches a port or as a heavily out new ways to do our job better. constant vigilance and innovation; the laden bulk train winds its way through Each link on the supply chain is only better we become, the less people outback Australia towards the coast, as strong as those around it. As the know it is happening. I know as chief executive of Ports Australia that my members do what they do because they truly believe in the sector. They ‘live’ ports, ships and the role they play helping this country develop. It has been said “there are no votes in freight”. If this is true then we are victims of our own success. Countless reports over the years that embody the missed opportunity to better utilise our nation’s coastline, to work alongside road and rail infrastructure in moving freight by the most efective transport mode, serve as examples we need to change our approach. Whilst there will be some aspects of possible reform that may encounter opposing points of view, the underlying commitment to improving the movement of freight, and therefore the resultant economic beneft to our nation, must be our guiding principle. A supply chain that works together can withstand the Port of Townsville strain and is unbreakable.

42 Shipping Australia Limited Annual Review 2017 FREMANTLE PORTS

Recognised for excellence in delivery of services to support trade growth in containerised, breakbulk, bulk and cruise sectors as Western Australia’s principal general cargo port

• Working with port customers to • Working with industry and government understand and respond to their needs to improve landside logistics • Contributing significantly to • Committed to high standards of safety Western Australia’s economic growth and environmental management • Maximising opportunities to improve • Building and maintaining positive efficiency in container handling community links acorndesign.com.au 78819 www.fremantleports.com.au Shipping Australia Limited Annual Review 2017 43 ports - new south wales Port Authority of New South Wales

Glebe Island: the gateway to Sydney’s future

Grant Gilfllan, chief executive ofcer and director, Port Authority of New South Wales

The cruise industry might be the But while cruise ships might dominate between six and eight million tonnes within jewel in Sydney Harbour’s crown Sydney’s harbour and the headlines, it’s the next 30 years. worth remembering that central Sydney but it’s the working port at the still has a working port of vital strategic Now, following the recent strategic review heart of the harbour that will fuel importance. of Glebe Island by Infrastructure NSW, the city’s future. the New South Wales Government has reinventing Glebe island endorsed a recommendation to retain and The port at Glebe Island is at the centre of expand port facilities at Glebe Island to The latest statistics are out. The value of the Bays Precinct Urban Transformation meet the strategic supply needs of the the Australian cruise industry has leapt Program: an ambitious urban renewal plan construction industry. to reinvent and revitalise a central area of past $5 billion for the frst time – up by 15.4 integrating ports with innovation per cent on the previous year. A report by Sydney Harbour and transform it into a hub the Cruise Lines International Association of commercial, residential and recreational The reinvention of the area means that (CLIA) shows that New South Wales leads innovation. any port facilitates of Glebe Island must the Australian cruise industry once again, This long-term project, along with 70 billion also innovate. Space in central Sydney is and contributes $3.1 billion to the national dollars’ worth of other major works like at a minimum, and price is at a premium. economy. WestConnex, will require immense amounts To succeed in maintaining a working of construction materials such as cement, port in the midst of urban renewal in a a record year for cruise sand and aggregate for the concrete supply cosmopolitan city, we have to be forward These results are not surprising, as a record chain. thinking, we have to adapt and do things 350 cruise ships are scheduled to visit diferently. It is our vision that a working Port Authority of New South Wales always Sydney over the 2017/18 cruise season. knew that Glebe Island would be the port would seamlessly integrate as part of a Regional New South Wales will also beneft gateway that would make these projects technology and innovation precinct. from the cruise boom as more ships visit possible. Glebe Island is uniquely placed New South Wales already benefts from destinations outside of Sydney than ever to provide a low cost and sustainable entry before. Eden, Newcastle and Port Kembla world-class port facilities in Botany, Port point for construction materials needed Kembla and Newcastle, but a world-class have all seen a leap in cruise visits over in the CBD and Bays Precinct. The New working port in the economic centre of the recent years. South Wales Government’s A Plan for State will help drive Sydney’s infrastructure Growing Sydney 2014 and NSW Freight Newcastle will receive ten cruise ships, up and urban renewal boom for decades to and Port Strategy 2013 also recognised the from fve last year; Port Kembla will host come. two after receiving its frst- ever ship last strategic importance of the port. year; while Eden will see 15 cruise ships Glebe Island gives us the opportunity to Glebe Island in Sydney Harbour has been visiting the Sapphire Coast this season – up reduce on-road congestion and pollution, a working port for over 100 years. With the from 14 last year and eight the year before. and create a marine-based supply chain to New South Wales Government announcing Work is now underway to extend Eden’s deliver bulk materials right where they’re its support of retaining and expanding the multi-purpose wharf to accommodate the needed. Independent modelling has port and its critical harbour activities, Glebe larger cruise ships, which will bring further forecast that annual construction material Island’s contributions to the city’s growth economic benefts to the region. throughput at Glebe Island would be and development is set to continue.

44 Shipping Australia Limited Annual Review 2017 Providing safe, efficient and sustainable world-class port and marine services portauthoritynsw.com.au

Shipping Australia Limited Annual Review 2017 45 ports - new south wales Port Botany/Port Kembla

heavy vehicle precinct strategy and containers into the future. trafc survey This exhibition aims to assist with growing We have been assisting the New South public awareness of the important role of Wales Government with the development freight, and containers specifcally. of a Port Botany Heavy Vehicle precinct strategy, focussed on the use of Higher By delivering an interactive exhibition Productivity Vehicles within the port and inside six real containers, which is free throughout Sydney. And we’ve carried and publicly accessible for 12 months, we are aiming to reach as many people as out the Port Botany Trafc Survey, which possible. marks the frst time that overall trafc volumes have been measured in the port bay Gift Carnival and Gabriella precinct. memorial development and maintenance NSW Ports also sponsored the Women’s Gift event at the Bay Gift Carnival in April Development and maintenance projects 2017 – a community-based sprint carnival, undertaken include maintenance dredging and constructed the new Gabriella at Port Botany and Port Kembla, to ensure memorial, holding a 30th anniversary we can cater for the increasingly larger commemorative service to mark the vessels coming into port, and the repair occasion of the sinking of the Gabriella in of Port Kembla breakwaters, seawalls, Port Kembla. berths and revetments, following major Progressing all storm damage in June 2016. Quattro facility opening environment facets of shipping The new Quattro Ports grain terminal at Port Kembla was ofcially opened on 19 This year our work in the environmental and getting freight April 2017, with a ceremony attended by space included the installation of a real- port stakeholders and local community time noise monitoring system at Port leaders, to mark the occasion. The Hon Botany, and solar panels at Brotherson of our roads Melinda Pavey MP, New South Wales House and Maritime Centre. Minister for Roads, Maritime and Freight, ofcially opened the site. Cruise By MARIKA CALFAS, chief executive ofcer, NSW Ports Following our completion of berth Port Kembla has become a proven transit construction and dredging works, call destination for cruise ships, and we the Quattro Ports facility, which was will continue to work with shipping lines commissioned in early 2016, received its to identify opportunities for future cruise Port Botany is the State’s only frst train load of grain utilising the Inner vessel visits. container port and last year Harbour rail sidings. The frst grain ship In FY17 four cruise vessels berthed at handled over 2.4 million TEUs was loaded at the end of March 2016, and Port Kembla. This took place between the facility has continued to see steady December 2016 and February 2017 across more than 1,100 vessels. throughput over the last 12 months. with over 11,500 passengers visiting the Our 30 Year Master Plan sets out enfeld intermodal Logistics Centre Illawarra. The frst ever cruise ship to call was the Radiance of the Seas, followed priorities and actions to achieve We are partnering with the Goodman with two visits by Voyager of the Seas and sustainable and efcient port group to develop our Enfeld Intermodal The Norwegian Star in February. supply chains into the future. Logistics Centre, which includes high quality warehouse and logistics operations performance for our customers. Located only 15 FY17 has again seen container trade Container exhibition kilometres west of the Sydney CBD, growth at Port Botany. The headline fgure NSW Ports was delighted to be able the site benefts from direct access for FY17 is the achievement of 2.431 to partner with the Australian National to key roads (M4 and M5 motorways) million TEU throughput at Port Botany, Maritime Museum to develop the and dedicated freight rail infrastructure which is up 4.6 per cent on the previous exhibition, Container: The Box that connected to Port Botany. year. The key drivers of this growth were: Changed the World, to allow the general The Enfeld Intermodal Lookout was agricultural exports from regional New public a glimpse into our world – and the ofcially opened on 28 April by NSW Ports crucial port supply chain. The exhibition South Wales; and imports of building chairman, Paul McClintock, Member for was ofcially opened on 25 October 2017, products and consumable items. Strathfeld Jodi McKay and NSW Ports by the Hon Melinda Pavey MP, New South CEO, Marika Calfas. Located in the Port Kembla import volume was up over Wales Minister for Roads, Maritime and southern precinct of the Enfeld Intermodal 7 per cent, driven by motor vehicles, Freight. Logistics Centre, the new walkway and steel raw materials, cement clinker and Community understanding of the fact viewing areas allow the public to observe other general imports. Grain exports that container supply chains underpin terminal operations and appreciate the had a bumper year with over 2.26 million our economy is essential if we are to ecological and historical features of the revenue tonnes being exported from Port efciently cater for the growing volumes of site. Kembla.

46 Shipping Australia Limited Annual Review 2017 Discover how Australian Trusted Trader can make business Shaping easier for you the

As our Trusted Trader community grows, businesses are seeking providers they know are trusted in the future international trade community. Be amongst the businesses that are leading the way in a new service delivery model and join Australian Trusted Trader today. of trade www.border.gov.au/trustedtrader Shipping Australia Limited Annual Review 2017 47 ports - new south wales • Conducting modelling and simulation studies in partnership with the Port Authority of NSW which will pave the Newcastle way for continued growth and efciency, including increasing the tanker size handled by Port of Newcastle to LR1 and LR2. This has all been achieved while maintaining an exemplary safety, Capacity, capability environmental and social record including more than three years without a Lost Time Injury – a safety record that Port of Newcastle is proud of and strives to and investment. maintain. There were zero environmental incidents Future proofng the east from Port of Newcastle operations in 2017. Port of Newcastle has invested $2 million in environmental studies and infrastructure coast’s largest port to improve the port’s environmental performance, with further investment planned. By GEOFF CROWE, chief executive ofcer, Port of Newcastle Since commencing operation in May 2014, Port of Newcastle has invested $4.3 million in its local community, funding The Port of Newcastle is one of Australia’s tankage approved for construction. new community amenities around the largest ports and is well known as the • Handling more than 1.7 million tonnes port, family-friendly harbour-side events, world’s largest coal export port. As a global of wheat, eclipsing the 0.4 million tonnes assistance for homeless and disadvantaged gateway facilitating trade throughout Asia people, and supporting educational, and the Pacifc, the Port of Newcastle’s exported in total 2015-16 by 300%. On the back of the record-breaking export season environmental and arts projects. It is also 25 cargo types span a variety of modes preserving the port’s industrial history by including dry bulk, bulk liquids, break bulk, for NSW farmers, fertiliser imports have increased 24% on 2015-16. restoring the heritage listed Carrington project, Ro-Ro, passenger and containers. Engine House which formerly housed 2016/17 was a record breaking year for • Securing the import of 140 wind Australia’s frst large scale hydraulic power the Port of Newcastle. The east coast’s turbines, including the largest wind turbines system. to enter Australia. largest port handled 170.4 million tonnes of In late 2017 the Port of Newcastle trade valued at nearly $23 billion, driven by • Importing rail carriages and tunnel was recognised on the national stage, record volumes of coal, fuels and wheat. boring machinery for Sydney infrastructure receiving a highly commended award in The Port’s commercial manager, Port of projects, providing an efcient and cost- the Australian Shipping Awards ’Port or Newcastle, has embarked on an ambitious efective solution to capital city congestion. Terminal of the Year’ category. I received the ‘Newsmaker of the Year’ award in diversifcation strategy and is investing in • Investing $30 million in the future of recognition of the Port’s diversifcation state-of-the-art port infrastructure. bulk handling to increase capacity and plans, investment in new infrastructure and Highlights included: grow trade at the Newcastle Bulk Terminal community contribution. More recently, (Kooragang 2 and 3 berths). • Facilitating the growth of bulk fuel Port of Newcastle was also recognised imports. Fuel is now the Port’s second • Unveiling the design of Port of at the HunterNet Chairman’s Awards, largest trade, with 2016/17 fuel imports Newcastle’s cruise terminal, which is due receiving the PKF Export Award. totalling 2,089 megalitres, 6% above for completion in 2018. The $12.7 million Port of Newcastle is focussed on utilising 2015-16. The Port has 266 mega litres of project is funded by the NSW Government the Port’s signifcant port and supply tankage available at Stolthaven, Park Fuels and will enable Newcastle to welcome chain capacity to deliver efcient logistics and ATOM, with a further 338 mega litres of more and larger cruise ships. solutions that increase the competitiveness of Australian exporters and importers. The Port’s channel can accommodate more than 10,000 ship movements and more than 328 million tonnes of trade – that is, more than double its current trade. Direct connections to the national rail and road transport networks link the Port of Newcastle to producers and project sites across regional New South Wales, Sydney and Brisbane. This unique capacity is being leveraged by cargo owners and the logistics industry to drive competition and challenge existing supply chains. With Australian freight predicted to double over the next 20 years and beyond, the Port of Newcastle is committed to growing Port of Newcastle’s channel has been modelled at more than 10,000 ship movements and all trades and driving the competitiveness more than 328 million tonnes of trade. This represents more than double the of Australian exporters and importers. Port’s current trade.

48 Shipping Australia Limited Annual Review 2017 CAPACITY TO DELIVER The Port of Newcastle is the largest port on the east coast, handling 170 million tonnes of trade and over 4,500 ship movements per annum.

Port of Newcastle specialises in handling all types of cargo modes, including dry bulk, bulk liquids, break bulk, project, Ro-Ro, passenger and containers. We are committed to growing all trades and are ready to support the nation’s future freight task.

Rely on Port of Newcastle’s proven capability and signicant supply chain capacity

• Deep water channel modelled at more than 10,000 ship movements - more than double the current trade. • Excellent berth and channel availability. • Direct connections to the national road rail network. • Close proximity to producers and project sites across regional NSW, Sydney and Brisbane. • 00 hectares of vacant, portside land and cost eective cargo storage solutions.

Contact our Trade & Business Development team to design a customised supply chain solution today.

CONTACT +61 2 4908 8200 www.portofnewcastle.com.au [email protected] linkedin/portofnewcastle

Shipping Australia Limited Annual Review 2017 49 ports - queensland Brisbane

Safety, performance, collaboration - stakeholders come frst

By ROY CUMMINS, chief executive ofcer, Port of Brisbane Pty Ltd

year in review technology. relieve road congestion and reduce the damage to roads, which take the bulk of Port of Brisbane Pty Ltd (PBPL) has In October, PBPL was recognised as the supply chain challenge today. continued to focus on putting our one of eight national ‘customer steward customers frst, driving innovation and exemplars’ – and the only port – by the investing in innovation unlocking supply chain value. To achieve University of Sydney, for our partnership Enhancing port access goes beyond this, we have pursued a strategy shaped by approach to designing and delivering investing in ‘hard’ infrastructure. investment, innovation and collaboration to essential projects and initiatives. beneft all stakeholders. building for the future We have worked with DHI and other putting safety frst stakeholders to develop and implement A long-term strategic priority includes NCOS – the only UKC forecast system in Central to this strategy is ensuring the securing efcient land and waterside the world to have the same high level of health and safety of all who work at, or visit access to the port, and this partnership accuracy as a Full Mission Bridge Ship the port. While this priority has continued approach is essential to ensuring we Simulator. to underpin our operations and planning, continue to deliver capacity-building it has also been a driving factor on major infrastructure to meet the needs of our By using all available channel data, NCOS projects currently underway. These include customers and support future trade growth has enabled bigger vessels to call at the $110 million upgrade to port roads for Queensland. Brisbane – demonstrated by the arrival of and the development of NCOS ONLINE the Queensland’s frst 9500 TEU vessel, the That is why, over the next fve years, – under keel clearance (UKC) technology, Susan Maersk, in October 2017. PBPL will invest almost $600 million in enabling larger container vessels to safely infrastructure to enhance safety and The technology has increased safety, navigate the port’s shipping channel efciency, improve port access and fexibility and value for shipping lines, without additional extensive and expensive facilitate trade. and enabled PBPL to delay an expensive dredging. and environmentally challenging channel Signifcant progress has been made on our positive trade performance upgrade. It is also key in our work in $110 million Port Drive Upgrade project, ensuring that Brisbane will never be the Overall trade increased 10 per cent to which will improve the safety and efciency limiting factor on Australia’s east coast for reach 33.2 million tonnes in 2016/17, led by of port roads when the project is completed container vessels. strong growth in agricultural exports and in mid-2018. a record year for containers – throughput Looking ahead Government approval of PBPL’s proposal exceeded 1.2 million TEUs for the frst time. to build south-east Queensland’s frst mega Our long-term strategic priorities will Collaboration is key cruise ship terminal at Luggage Point, continue to focus on enhancing port adjacent to the port’s existing operations, access and promoting logistics solutions to PBPL’s customer centric approach has put will provide the cruise industry with a support trade growth and economic activity collaboration with customers, industry and dedicated facility able to accommodate the through the port. stakeholders, at the heart of what we do. largest ocean-going liners in the world. Throughout the year, we have continued Over the next 12 months, we will continue to work with stakeholders to identify the We also continue to advocate for national to partner with customers, industry, challenges and opportunities facing a coastal shipping reform. A more cost- government and the community, to identify growing port, to understand how industry efective and sustainable domestic opportunities and progress major projects can adapt to changing market conditions, freight transport solution would beneft that will ensure Port of Brisbane truly is and to embrace new innovations and all Queensland ports. It would also help here for the future.

50 Shipping Australia Limited Annual Review 2017 PORT OF BRISBANE

AUSTRALIA’S 2017 PORT OF THE YEAR Customer focused. Strong trade growth. As Queensland’s largest multi-cargo port and Australia’s most diverse, Port of Brisbane handles around $50 billion in international trade annually. We work closely with customers and stakeholders to facilitate trade, unlock supply chain value, and sustainably develop the port for Queensland.

National recognition as a World-leading channel ‘customer stewardship optimisation technology exemplar’ Internationally-accredited Almost $600M in environmental management infrastructure investment Five property precincts enabling over the next five years better logistics, connections and trade Be part of Port of Brisbane’s growth story. Contact our Trade Development or Property Teams on 07 3258 4888 or visit www.portbris.com.au

Shipping Australia Limited Annual Review 2017 51 ports - queensland Far North Queensland

Cairns port - not just a pretty face

CHRIS BOLAND, chief executive ofcer, Ports North

the port of Cairns is cementing brought in by road and rail to Cairns, than 450 components - including its reputation as a major cargo for shipment to Weipa. All up, more towers and 57 metre blades - for and transhipment hub in Far north than 320,000 tonnes of essential Ratch Australia Corporation’s Mount Queensland, with the awarding of freight material will leave the port Emerald Wind Farm, arrived. for the mine construction phase, game-changing contracts during The spectacular sight was the result over two years. Vessels such as the 2017. of a commercial agreement struck 85 metre landing craft Toll Osprey, between Ports North and Mount Earlier in the year it was confrmed are making weekly and fortnightly Ports North - the owner/operator of journeys to Weipa. Emerald’s EPC contractor, Vestas nine ports in the region - had secured Australian Wind Technology. Construction of a second windfarm in the transhipment contract for the Rio Preparation for the project meant Tinto Amrun bauxite mine project Far North Queensland is also playing out on the Cairns Port wharves. In Ports North invested in a purpose- near Weipa. late September, the frst of eight built cargo import laydown facility This involves domestic freight being cargo vessels containing more to store the unique size, shape and weight of the components. The area is about four hectares and needed specialised ground preparation for heavy duty cargo. The components are being stored for progressive transfer by road to the Mount Emerald site. Both projects were a coup for Ports North, as we were up against Darwin and Townsville ports. But the selection of Cairns underlined our growing reputation as an efcient and strategic terminal, capable of taking on big specialised projects. We’re not just a pretty face, but an important industrial hub for the region. While these projects make an impact on our industrial capabilities, we are also experiencing one of our busiest cruise ship seasons, with some 57 vessels arriving at the port of Cairns during 2017, including the very Heavy duty cargo arrives in Cairns, enroute to Mount Emerald successful homeporting season with

52 Shipping Australia Limited Annual Review 2017 Laydown facility to store the unique size, shape and weight of wind farm blades and towers

Pacifc Eden. More than one million existing slipway rail - all of which fertilisers, iron ore, minerals, livestock visitors from Australia and around the will create immediate employment, and general cargo, representing $1.8 world, also used our port facilities to as well as long-term shipbuilding billion gross value added and 17 per experience the wonders of the Great and maintenance opportunities, cent of the gross regional product. Barrier Reef. traineeships and job creation. Over the past 12 months around fve At the port of Mourilyan, a The Draft Environmental Impact million tonnes of cargo made its way Memorandum of Understanding Statement for the Cairns Shipping through Far North Queensland’s ports struck between Ports North and Development Project was also bound for domestic and international United Petroleum Pty Ltd, could lead completed and is being assessed by markets, ensuring the continuing to a regional fuel importation, storage the Queensland Coordinator General. fnancial health of our business. The project aims to deepen and widen and distribution facility developed by As we continue to build our port the Trinity Inlet shipping channel to 2020. capabilities, Ports North will also allow for larger cruise ships, as well as continue to champion the case The selection of Mourilyan as the cargo, and naval vessels. preferred port of import for a northern for environmentally sustainable fuel facility, highlights the port’s As an organisation, Ports North economic development and improved potential as a trade hub for targeted, ports handle bulk shipments of social outcomes for the Far North medium-sized bulk cargo into the sugar, molasses, silica sands, fuel, Queensland region. future. Already we have seen the successful establishment of a magnetite export operation at the port, as well as continued growth in sugar and molasses exports. Back at the port of Cairns, the Federal Government has also committed $24 million, across three of the biggest shipyards in Cairns, in a move to revamp the city’s marine precinct. Norship Marine, Tropical Reef Shipyard and BSE Maritime Solutions will each receive about $8 million for works which will include building more than 170 metres of new wharf areas, electrical and fre system upgrades, workshop construction, security systems, hardstand resurfacing and 135 metres of extensions to Wind farm components unloading in Cairns

Shipping Australia Limited Annual Review 2017 53 ports - queensland North Queensland

Customers: the focus at Port of Mackay

By STEVE LEWIS, chief executive ofcer, North Queensland Bulk Ports Corporation

north Queensland bulk ports As the Queensland mining sector Port of Mackay, there has been no Corporation (nQbp) continues to continues to thrive, and key other option for regional operators support regional development and infrastructure projects are ongoing but to ship RORO cargo, such as growth opportunities, with multi- in the region, the port of Mackay has mining vehicles and other large million-dollar upgrades to shipping long been a gateway for trade critical mobile machinery, through Brisbane. infrastructure at the port of mackay to the State’s economic development. Operators would then be required under way. to transport the cargo via road or The port itself has a nearly 80 year history facilitating trade directly to the rail to site – which could be more Bowen coal basin and surrounding than 1,000 kilometres away – posing region. It also plays a leading considerable added cost and safety role with NQBP’s other operating considerations, particularly for this ports in Bowen, Weipa and Hay type of cargo, which is often over- Point, which together handle more sized and over-mass. than half of Queensland’s trade by By early 2018, we expect customers tonnage, between key national and with RORO requirements will be able international hubs. to work directly through Mackay, A variety of cargoes pass through which will prove more convenient the Port of Mackay, and NQBP is in terms of time, cost and safety, now rolling out a $11.64 million creating more jobs locally, so money infrastructure upgrade to the central can be reinvested back into the Queensland gateway to support community and local growth projects. growth in break bulk trade in the The works under way at the Port of region, as well as critical roll-on roll- Mackay include design changes to of cargo (RORO). Wharf 4 and Wharf 5 that will allow Accommodating RORO as part RORO access via Wharf 4. When of the expansion of break bulk complete, larger vessels of up to 200 capabilities in Mackay will not only metres in length and 32.2 metres increase options for customers, it wide will also be able to dock at the will help save money and increase port. the potential to generate further The Port of Mackay already ofers economic growth. customers access to an 800 hectare Mackay is a sheltered port with direct break bulk storage area – the largest access to major transport corridors, in the region – for staging, pre- so we expect the upgrades will make assembly and pre-commissioning of the port increasingly attractive for machinery and equipment. This area transport and logistics companies also comprises 55 hectares of wharf- operating in the region. side storage. Prior to the planned upgrades to the An accredited quarantine wash-

54 Shipping Australia Limited Annual Review 2017 down facility that can accommodate ofers access to a major Mining million tonnes, with this volume only containers, large heavy machinery Equipment, Technology and Services expected to grow with the improved and vehicles used for mining, hub nearby the port. facilities coming on line early 2018. infrastructure and agricultural Mackay’s operational track record NQBP is committed to continuous purposes, has also recently been further supports NQBP’s vision for assessment and improvement of completed and supports international the shipping facility. In 2016-17, its services and facilities across all cargo through the port. trade through the Port of Mackay ports, and will continue to make The improved facilities will continue was strong, increasing 2.74 per cent headway to improve overall trade to beneft the region and help on the previous year, even despite competitiveness. facilitate further growth opportunities the impact of category four Tropical over the coming years. Cyclone Debbie in March. The Port of Mackay is already a One hundred and ffty-fve ships leading service centre and, in addition berthed at the Port of Mackay during to shipping and related services, the year, carrying a total of 2.9

Port of Mackay Connecting Central Queensland with the world.

Darren at [email protected] nqbp.com.au

Shipping Australia Limited Annual Review 2017 55 ports - queensland Townsville

Positioned for future trade growth

By RANEE CROSBY, chief executive ofcer, Port of Townsville Ltd

2016/17 was a big year for port Expansion Project, will see widening Corridor (TEARC) project took a of townsville Limited. a number of the channel to give us capacity signifcant step forward, with the of new projects and expanded to host next generation commercial, Business Case being led by Building shipping services came online, cruise and defence ships. Queensland, to be completed late positioning townsville well for in 2017. This rail link will enable future trade growth. The $40.5 million investment to Townsville Port to meet future freight upgrade Berth 4 for container demand and improve efciencies on terminal expansion and general the Mount Isa Rail Line. During the year the port of Townsville cargo handling, is in its fnal stages, Port of Townsville is “Australia’s was announced as the primary with construction on track to be Port or Terminal of the Year” for import hub for project cargo, fuel completed by December 2017. On both 2015 and 2016 as awarded and general cargo for the Adani completion there will be further Carmichael mine , rail and port investment into state-of-the-art at the Australian Maritime and project, the export hub for MMG’s cranes and terminal areas. The Shipping Awards. Winning this Dugald River mine, and import hub overall project will see a doubling of award for the second year in a row refected the exceptional talent and for a number of the region’s solar our capacity for container and general innovation of our people, and we are projects. cargo handling. extremely proud of their eforts and Cruise shipping increased The Townsville Eastern Access Rail commitment. signifcantly, with eleven ships to be welcomed in 2017 and 19 cruise ship booking for 2018. P&O Australia also made the signifcant announcement of a trial partial ship turnaround in Townsville in September 2018, meaning people in Townsville will be able to board a cruise in their home city for the frst time. The $1.64 billion Townsville Port Expansion Project reached a major milestone with the submission of the Additional Environmental Impact Statement, having been in the planning phase for more than ten years. The AEIS received approval from the Queensland Government in October 2017, and is in the fnal stages of assessment by the Federal Regulators. The $193 million Channel Capacity Upgrade, Stage 1 of the Port

56 Shipping Australia Limited Annual Review 2017 ports - victoria Melbourne

Public to private – challenges and objectives

By BRENDAN BOURKE, chief executive ofcer, Port of Melbourne

more than a year has now passed Melbourne’s population is set to a willingness to invest in the port since the privatisation of the port climb to around 8 million by 2051, for the lifetime of the lease, and this of melbourne, one of victoria’s and compound container trade certainty will underpin planning for most important infrastructure growth is forecast to be 3-4 percent future projects, such as upgrading assets. it has been a year of annually. Together with broader port infrastructure to accommodate transition as we position ourselves industry change, there are signifcant larger ships. to be more outward looking, and challenges ahead. In this context, Importantly, the strong and support the freight and logistics strategic port planning will be critical transparent regulatory environment, sector as a whole. to ensure we address the demands of established as part of the port lease, the future freight and shipping task. includes many specifc conditions It is crucial that port planning and requirements, which were put recognises that port initiatives must in place as the result of industry be integrated with projects being consultation. Under this regime, port developed in and around the port prices for prescribed services will precinct, as well as broader freight increase annually by no more than and transport projects with links CPI, until June 30 2037 at the latest, to the port. Planning must also creating certainty and fairness for recognise trends in the shipping port users. industry and the impacts on operating The port is but one player in a and infrastructure demands. complex system, and efective So, while Port of Melbourne works to collaboration will be key to fnding develop a Port Development Strategy solutions to keep freight moving, and a Rail Access Strategy, we both at sea and on land. Over the remain mindful of what is happening past year I have met with people outside the port gate. The West from across the industry, not just in Gate Tunnel project and the Dynon Melbourne but in the regional trade Precinct Master Plan in Melbourne, catchments, which are such an and far-reaching national projects, important part of port trade. Port such as Inland Rail and the National stakeholders know their businesses, Freight and Supply Chain Strategy, so we must collectively tap into this must all form part of any coherent knowledge and work, as an industry, vision for the supply chain of the towards mutually benefcial outcomes future. and a prosperous future for all. For the shipping lines which service Melbourne, the 50 year lease under which the port now operates, afords a certainty of investment that was simply not possible under changing governments and election cycles. Our shareholders have expressed

Shipping Australia Limited Annual Review 2017 57 ports - south australia Flinders Ports

Another productive year

By VINCENT TREMAINE, chief executive ofcer, Flinders Port Holdings

Flinders Port Holdings has seen another productive year across its three core business units, Flinders Ports, Flinders Adelaide Container Terminal and Flinders Logistics.

Flinders ports diameter operations out of South Australia and into Northern Queensland, with the The ports business has enjoyed a - Relocation of up to 16 navigational acquisition of Townsville Bulk Storage record year with over 2,500 shipping aids to the edge of the widened and Handling. movements across the seven ports. channel The increase in shipping activity Established in 2009, Townsville - Removal of approximately 1.6 has been driven primarily by South Bulk Storage and Handling is widely million cubic metres Australia’s largest grain harvest on recognised as a leader in providing record. A Development Application has been reliable and customer-focused submitted to the South Australian supply-chain management solutions, The business is continuing to develop Development Assessment Commission including stevedoring, transport, and improve infrastructure to support all with approval anticipated shortly. customs, quarantine and warehousing stakeholders and to provide port users solutions. with efcient, state of the art facilities. Project delivery will involve initial Current projects include: engagement with potential dredge operators to identify initial costings additional pilot boats and availability of plant, with a view to The Flinders Ports’ pilot boat feet commencing the dredging during the replacement strategy continues with frst half of 2018. two more pilot boats currently under On completion, Port Adelaide will be construction. The new vessels will also able to accept vessels with a beam of be constructed by Hart Marine and will 49 metres. This project will not only have similar specifcations to the Alert beneft the container lines but will also and Reliance, which were delivered in enable the port to accept larger cruise 2015. It is expected that these two new vessels and LR2 tanker vessels. pilot boats will be delivered in the frst half of 2018. Flinders adelaide Container terminal Channel widening project The container terminal has seen trade increase to 401,708 full and empty Flinders Ports is progressing plans to TEU’s. Infrastructure improvements widen the Outer Harbor channel to cater to increase efciency and capacity are for the larger vessels that are starting to ongoing, including further expansion trade on the Australian coast. of the terminal yard and relocation of Key elements of the project include: one of the two rail sidings within the terminal. - Existing 130 metre wide channel to be widened by 40 metres to 170 Flinders Logistics metres Flinders Port Holdings’ logistics - Existing 505 metre diameter swing and stevedoring business, Flinders basin to be increased to 550 metres Logistics, has recently expanded its

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1PSUT -PHJTUJDT $POUBShippingJOF AustraliaST Limited4 AnnualUFW ReviewFE P2017SJO59 H ports - western australia Fremantle

Delivering value for Western Australia

By CHRIS LEATT-HAYTER, chief executive ofcer, Fremantle Ports

Fremantle ports’ chief executive data security. New agreements were negotiated for ofcer, Chris Leatt-hayter, refects the continuation of iron ore exports on 2017 as a year of robust We were successful this year in from the Kwinana Bulk Terminal and performance, both in fnancial terms negotiating some new agreements for sulphur imports over the Kwinana and in what was achieved overall. with some of our existing customers, Bulk Jetty. and in identifying some new business Despite subdued trading conditions, Over the past year, several additional opportunities. Some of these we delivered a positive return for trades have commenced for the bulk agreements relate to our bulk business Western Australia from our commercial business sector. One of these is the operations. We also introduced a at Kwinana, an increasingly important export of spodumene, an important source of lithium for a wide range of number of service improvements in trade sector, which generated about industrial and other applications. areas such as mooring safety, landside 20 per cent of our overall revenue in logistics, manifest processing and 2016-17. Regular exporting of bauxite is occurring from the Kwinana Bulk Terminal and silica sands are being exported across the Kwinana Bulk Jetty.

Other negotiations successfully concluded relate to our landside operations at the Rous Head Industrial Park. Situated on land reclaimed in the 2010 Inner Harbour deepening, these 27 hectares are now close to being fully developed in a way that improves the efciency of our landside logistics, particularly in relation to container handling.

We were delighted to receive, from the Infrastructure Sustainability Council of Australia, a rating of excellence for the construction of roads and services for the Rous Head Industrial Park project.

Total trade was slightly ahead of the previous year’s result, primarily due to an increase in bulk grain exports, and container trade overall at 716,000 TEU was similar to the previous year’s The total value of trade through Fremantle Port in 2016-17 was $26 billion result.

60 Shipping Australia Limited Annual Review 2017 The Kwinana Bulk Jetty is one of two bulk handling facilities owned and operated by Fremantle Ports

As expected, however, there EVOL LNG was approved by growth; delivering more proactive were mixed results for the non- Fremantle Ports to bunker liquefed customer service and stakeholder containerised and bulk sectors, as natural gas (LNG), providing management; actively developing the Western Australian economy access to this cleaner shipping fuel new business and trade; promoting continued to adjust to the end of the alternative for LNG-powered marine investment in the port by creating resources investment boom. vessels visiting the port. LNG fuel planning certainty; and developing has a better environmental footprint Environmental management a safe, agile and high performing than traditional carbon fuel, such as continues to be a high priority, and organisation. diesel and heavy fuel oil. The LNG we have retained certifcation to the bunkering is initially for the new duel Our 2017 customer survey showed international environmental standard ISO 14001. fuel ofshore support vessels. that 88 per cent of shipping lines and agents were quite, or very satisfed, All Western Australians depend on One of our current initiatives is the with our services and we will continue this busy port to deliver what is environmental surveying of cruise to work closely with our customers required and expected of it, both ships visiting Fremantle Port, to to make a positive diference to their now and in the future. With an understand the technical capabilities operations and business results. of vessels and what emerging energised, committed and talented technologies are being implemented workforce, Fremantle Ports has made In looking forward, Fremantle Ports is in line with global initiatives, to excellent progress towards a new closely involved in and supportive of reduce shipping emissions. Due to set of strategic priorities developed the State Government’s development the success of the surveys and the for the performance areas we see as of the Westport: Port and Environs essential to our future success. value of the information obtained, the Strategy to outline a long-range vision surveying has now been extended Fremantle Ports’ fve-year to guide the planning, development beyond cruise ships, to gather business plan is focused on, and and growth of both the Inner information on all vessel types Harbour at Fremantle and the future coming to Fremantle. sets clear targets for, improving fnancial performance through Outer Harbour port and landside In an Australian frst, Wesfarmers’ expenditure constraint and revenue infrastructure at Kwinana.

Shipping Australia Limited Annual Review 2017 61 international organisations CLIA Australasia and Asia

Another bumper year for cruising down under

By JOEL KATZ, managing director, Cruise Lines International Association (CLIA) Australasia and Asia

2018 is going to be another bumper pace of growth continues, the number annually. year of cruising ‘Down Under’. CLIA’s of Australian ocean cruise passengers CLIA is dedicated to the promotion recent Cruise Industry Source Market has doubled in the last fve years, and and growth of the cruise industry, and and Economic Contribution reports Australia has performed well ahead of also serves as a non-governmental show that Australia’s annual ocean leading established markets including, consultative organisation to the cruise passenger numbers continue Germany, UK and Ireland, and USA/ International Maritime Organization Canada. to surge, setting new records with ten (IMO), an agency of the United Nations. years of almost 20 per cent average While the current growth of the CLIA’s mission is to advocate policies growth. Australian market, and the fact it and practices that foster a safe, secure surpasses more established markets This demand is driving cruise lines to and healthy cruise ship environment; is fantastic, in this region a key priority base an increasing number of their educate and train its travel agent for 2018 is resolving infrastructure ships in this region, and Australians are members; and promote and explain the constraints to ensure the continued responding to the growing choice of value, desirability and afordability of a growth of cruise tourism. CLIA ships, and the wide variety of cruising cruise holiday. options ofered are capturing their will continue to work with State imaginations, as more Australians are and Federal Governments and key In our role of educating the trade, discovering that cruising is an easy, industry stakeholders, to support we help to educate travel agents to relaxing and great value way to holiday. the development of new cruise improve their capability to sell cruise. The fotilla of summer ships will make infrastructure around Australia (and in We also hold regular engagement close to 1000 calls to ports right Sydney, in particular). events and provide opportunities for travel agents to interact with cruise around Australia – from Darwin, Cairns A record number of ships making a lines and destinations. and Broome in the north to Hobart, record number of visits to ports around Kangaroo Island and Esperance in the Australia has seen the value of the Key to our advocacy function are south. cruise industry surge past $5 billion for supporting the technical and regulatory Australians are choosing to cruise at an the frst time. aspects of the industry. We can provide advice and support on a wide unprecedented rate, with the equivalent With the growing demand for cruise, range of industry issues. We will also of almost 1 in 20 Australians taking this is a fgure that should keep provide support and advice on how a cruise. This market penetration, growing. With many of these local best to grow and develop a sustainable the highest in the world, reinforces cruises calling at regional ports industry. Australia’s reputation as one of the around the Australian coastline, local world’s most vibrant source markets. communities beneft from the injection And fnally, we promote the industry by of valuable tourist dollars into the local providing worldwide and regional data CLIA’s latest source market research economies. and research on the growth of cruise, reported that the Australian cruise and working with our members and market grew by an impressive 21 per As the world’s largest cruise stakeholders to increase awareness of cent, with almost 1.3 million Australians association, the 50-plus CLIA member cruise as the preferred travel choice. taking an ocean cruise, and there is lines represent more than 95 per cent every expectation that the demand for of global cruise capacity, and serve To fnd out more about CLIA’s activities, cruise will continue to grow. As this more than 24 million passengers please visit www.cruising.org.au

62 Shipping Australia Limited Annual Review 2017 international organisations FONASBA

New members have added a thrust

By JONATHAN WILLIAMS, general manager, Federation of National Associations of Ship Brokers and Agents

Over the past year, FONASBA has added the value of the Standard to ship owners across the entire FONASBA membership. three more countries and two new club and ship agents. Our relationships with international members to our federation, expanded the The successful conclusion last year of organisations continue to function very Quality Standard to 30 countries, issued the cooperation with BIMCO to develop well. As shown on our Facebook page, another standard document and launched the Agency Appointment Agreement FONASBA attended the IMO World a new education initiative. So together with was followed up with an altogether more Maritime Day event in London, and we are covering all the usual surveys, membership ambitious undertaking, the drafting of continuing to work with IMO on container issues and taking action on maritime policy a General Agency Agreement. This weighing and the single window initiative issues at international and European level, document builds on the single-use AAA and operating under the FAL Committee. We it has been another busy year. Thankfully allows ship owners to appoint a general also remain active within the Private Sector we have also strengthened the secretariat agent for multiple calls across a number of Consultative Group of the World Customs to cope with all these new activities! ports, a region or country. Again, based Organisation, as well as keeping watch on In terms of membership, we have on BIMCO’s proven box type layout, the developments in Europe. new form provides a core of terms common welcomed associate members from To ensure we cover this expanding portfolio to most agency agreements, and in time the Republic of Congo, Romania and of activities I am now fortunate to be these will be supplemented by additional Sudan, as well as exchanging mutual assisted by Victoria Mott MICS. Victoria clauses to further refne the agreement for memberships with the Comité Maritime has been in the maritime sector for more specifc trades. As with the AAA last year, International, the maritime law organisation, than ten years, and as well as assisting the GAA was unanimously approved at the and INTERCARGO, the organisation me on a part time basis, also manages the FONASBA Annual Meeting, and at the time representing dry bulk ship owners. The International Maritime Industries Forum, of writing is awaiting fnal endorsement by Dubai meeting, our frst in the Middle East, a London-based international lobby BIMCO. Subject to that being secured, the also provided the opportunity to meet with organisation. new form will be available for use from the potential new members in the region and end of 2017. So there is plenty to keep us busy over the we hope that in due time they will also join next twelve months and we look forward us. Also launched in Dubai, was the FONASBA with confdence to being able to report Agent Diploma, an entry level qualifcation similarly encouraging developments and With the addition of Algeria, Tunisia and for ship agency staf, based on the very progress this time next year. Uruguay, and with more new companies successful scheme operated by ASBA, also being covered, our fagship Quality FONASBA’s member in the USA. The Standard is now in place in 30 countries diploma is aimed at boarding clerks and over 460 companies are now and other operational staf entering the approved. Two more associations are ship agency profession for the frst time fnalising their applications and with the and primarily targeted at those member approval process in Italy having been associations that do not provide their own streamlined, we anticipate a signifcant programme. ECASBA is also developing increase in the scope of the FQS in the the SAIL programme, a course for more coming months. This continued expansion, senior executives comprising a short together with the valued support from residential course and an exchange BIMCO, INTERCARGO and INTERTANKO programme within the participating enables ship owners to link up FQS countries. Whilst SAIL will initially operate approved ship agents across their trade in the European Union to beneft from lanes. Adding further companies in each of the free movement rules, it is hoped the the accredited countries will also increase programme will subsequently be rolled out Genoa Dinner, June 2017

Shipping Australia Limited Annual Review 2017 63 international organisations International Chamber of Shipping

Developing a CO2 reduction strategy for international shipping

By SIMON BENNETT, director policy and external relations, International Chamber of Shipping

in april 2018, the un imo is The joint proposals from ICS, BIMCO, measures to help deliver further CO2 scheduled adopt a strategy for INTERCARGO and INTERTANKO, reductions in the short-term, between reducing Co2 emissions from concerning suitably ambitious CO2 now and 2023. international shipping, in response reduction objectives, which IMO might adopt on behalf of the sector, Notwithstanding industry support to the paris agreement on climate 2 have been well publicised. for adoption of meaningful CO change. reduction objectives, ICS has made it 2 imo member states will need to These include holding total CO clear that industry is opposed to any be strategically bold, sending a levels from international shipping, legally binding cap being imposed below 2008 levels and adopting 2 clear signal to the world at large, on the total CO emissions from the an ambitious long-term goal for about shipping’s direction of travel, sector, as a whole. This is due to the reducing the sectors’ total CO2 in advance of the un Climate legitimate concerns of developing emissions by an agreed percentage Conference in december 2018, nations – whose support for the by 2050. This long-term goal would IMO strategy will be vital – about the when the unFCCC will be taking a be subject to the global availability of mini-stocktake of progress. potential impacts on trade and their alternative fuels and new propulsion future economic development. technologies – such as batteries, renewable fuel cells or hydrogen – However, this does not mean that ICS leading to the full decarbonisation is opposed to consideration being of shipping in the second half of the given by IMO to additional regulatory century. measures, including some that might be developed in the short-term. But IMO Member States will also be looking at possible candidate However, ICS is totally opposed to

64 Shipping Australia Limited Annual Review 2017 DWT currently do so, and even a cursory glance at the distribution of EEDI values, according to ship category and size, will reveal a more complex picture. Moving beyond Phase 3 will be challenging for many ship types. IMO cannot simply extrapolate future EEDI targets from past trends, especially if concerns about the implications of reduced engine power for safety and manoeuvrability are properly addressed – as IMO has now agreed to do. But with regard to the development of a CO2 reduction strategy, that is both suitably bold and realistic, ICS is confdent that IMO will deliver.

the concept of mandatory operational newly delivered container ships may efciency indexing being developed already meet the requirements of for individual ships. EEDI Phase 3, it would be a mistake to conclude that the EEDI is not The industry’s concern is that stretching efciency standards operational efciency indices enough. do not accurately predict fuel consumption and CO2 emissions Evaluating the efcacy of the EEDI in real life operations. These vary cannot be done simply by looking at greatly according to the voyage, the IMO EEDI database. Although a due to difering ocean and weather majority of container ships with EEDI conditions. values may meet Phase 3, almost no bulk carriers or tankers above 60,000 In tramp trades, in particular, the operator has no control over the nature of voyages, which will vary greatly in character from month to month and year upon year. There is a real danger that the use of operational indices will lead to unfair penalties being applied to individual ships, leading to serious market distortion and unfair competition. The industry’s critics have also focused attention on what they see as the inadequacies of the Energy Efciency Design Index (EEDI), which requires new ships built after 2025 to be 30 per cent more fuel efcient than comparable ships delivered before 2013. The fact that the shipbuilding industry has already been able to improve the efciency of ships signifcantly, beyond what is required by EEDI Phase 1, means that the IMO EEDI regulation has been criticised unfairly for somehow being too soft. Some types of new build ship have certainly enjoyed spectacular improvements in fuel efciency since the EEDI took efect. But while many

Shipping Australia Limited Annual Review 2017 65 maritime law and insurance

General Average in ofshore construction projects: salient lessons

By MAURICE THOMPSON, partner (national group head: maritime, commodities, oil and gas) and JOEL COCKERELL, associate/master mariner, Clyde and Co

The recent Federal Court of Australia Miclyn Venture (time chartered dealing with GA, the GA event and decision of Ofshore Marine to OMSA) departed Henderson contributions had to be assessed Services Alliance Pty Ltd v Leighton for Barrow Island towing a barge as a matter of common law and Contractors Pty Ltd [2017] FCA (demise chartered by OMSA) pursuant to the Marine Insurance 333 provides some salient lessons laden with project cargo, including Act 1909 (Cth) (the act) without the for parties involved in transporting that notionally belonging to the beneft of the incorporation of any project cargo, associated with respondents. On 29 November version of the York-Antwerp Rules. ofshore oil and gas projects, by sea, 2012, during forecast heavy weather, and the impact of a general average the towing pennant parted, resulting There were provisions in the event. in the loss of the tow. Some hours respondents’ contracts with Chevron later, the barge grounded on rocks. that provided for the transfer background of title (ownership) to Chevron OMSA incurred signifcant costs and The respondents in this proceeding upon the project cargo frst being expenses re-foating the barge and were involved with the construction appropriated (or identifed) to the towing it back to Henderson, with of the Barrow Island LNG Plant works. That transfer occurred the cargo intact and undamaged. as part of the Gorgon Project in before the GA event, such that the OMSA alleged that it incurred costs Western Australia (the project), and respondents were arguing that they of some AUS$4 million in securing had signed contracts with Chevron were not “owners” of the cargo. the common safety of the barge and Australia Pty Ltd (Chevron) in that However, the contracts provided project cargo, and commenced the regard. The applicant, Ofshore that the respondents would remain subject legal proceedings to claim Marine Services Alliance Pty Ltd “responsible for the care, custody, the asserted contributions in general (omsa), had a contract with Chevron control and safekeeping and average (Ga) from the respondents. for the provision of various services, preservation” of the cargo. including the supply of tugs and decision The court was therefore called upon barges for the transportation of As there were no carriage contracts to consider whether the respondents project cargo to Barrow Island. between the respondents and had a sufcient “interest” in the On 27 November 2012, the OMSA that incorporated any clause project cargo to attract liability to

66 Shipping Australia Limited Annual Review 2017 contribute in GA.1 the word “owner” was concerned in contract, passes to the buyer over the Act, that where the word “owner” the ship’s rail at the load port (for OMSA argued that as the was used, “owner” was meant, and example: assume INCOTERMS respondents shared the risks of that where another type of interest 2000 applied). Now consider that the maritime adventure, and as the was intended, that was expressed. a GA event occurred during the fundamental philosophy regulating ocean transit and the ocean carrier GA contributions is that all those Dismissing OMSA’s arguments and exercised a contractual lien over sharing the risks of a maritime fnding in favour of the respondents, the cargo at the discharge port and adventure should contribute ratably His Honour concluded that: refused to release the cargo until to any extraordinary sacrifce or “In my view, the liability to contribute someone put up an average bond or expenditure necessary to ensure its in general average attached to one guarantee. success, the respondents should who is the owner of the relevant The ocean carrier’s carriage contract be liable to contribute in GA. The freight or cargo that benefted from would be with the CFR seller, so position advanced on behalf of the general average, sacrifce and the ocean carrier would typically the respondents was that all of the expense or contractual obligation seek to hold the seller liable to cases that examine who is liable to to the general average claimant in make contribution in GA under the contribute in GA, both in Australia circumstances governed either by a carriage contract evidenced by the and elsewhere, supported the bill of lading or by a general salvage bill of lading. In practice, however, argument that liability in GA would bond.” only attach to an “owner” and/or the ocean carrier could exercise a someone contractually liable through discussion contractual lien over the cargo at the discharge port and refuse to a contract with a general average Had OMSA’s arguments been release the cargo until someone put claimant. accepted by the Court it would have up an average bond or guarantee. opened a pandora’s box of problems The honourable McKerracher J In other words, the ocean carrier because there may be a number of expressed the view that there was no would not care who put up that parties who have an “interest” of reason to depart from the consistent security. However, if the buyer diferent sorts in the cargo, which line of authority, including Scaife chose to breach its contract of sale would make the issue of liability and and Ors v Sir John Tobin, Knight and refused to accept delivery of the proportion of any contribution (1832) 110 E.R. 189 (Scaife), Hain the cargo at the discharge port and exceptionally complex. Steamship Co Ltd v Tate & Lyle refused to put up any GA security, Ltd [1936] 2 All ER 597 and Castle Consider the relationship between a then the ocean carrier would simply Insurance Co Ltd v Hong Kong shipper and its marine cargo insurer. turn to the CFR seller, as the party Islands Shipping Co Ltd [1984] 1 While the insurer may be “on risk” contractually bound under the bill of AC 226 (Castle), which do not raise vis a vie the insured, the insurer has lading contract, to contribute in GA. any suggestion that the basis for no direct obligation to contribute in The CFR seller could certainly sue contribution is some interest in the GA. Had OMSA’s arguments been the CFR buyer for breach of the sales cargo less than ownership where successful, relevant insurers would contract, but that is a completely there is no contractual obligation with be directly liable to contribute subject separate claim to the claim by the the GA claimant to contribute. to the policy wording. ocean carrier under the carriage contract. In Castle, Lord Diplock explained that OMSA’s argument would also liability to contribute in GA rested efectively turn on its head the long- On OMSA’s argument, the CFR buyer with ownership, or as a matter of established law with regards to the should have been liable to the ocean contract, where the contract was relationship between international carrier in GA if the GA event occurred either a bill of lading or an average sales contracts on “shipment terms” after the buyer came “on risk” for bond given for the release of the (for example: FOB, CIF and CFR) and the cargo, even though there was cargo from the carrier’s GA lien. In international carriage contracts. no contract between the two. If the Scaife, the language used was even sales contract was on CIF terms, Consider a CFR sale. The CFR seller more absolute. Scaife dealt with the OMSA’s argument would produce is obliged to procure the carriage question as to whether a consignee an even more illogical result, in that contract. That carriage contract may who was not the owner of the goods the parties liable to contribute in be evidenced in a bill of lading or a could be liable in GA absent any GA would be jointly and severally charterparty. It is typical in both, that contractual obligation. Littledale J the seller, the buyer and the marine the contracting party, as the shipper held that “…a mere consignee who cargo insurer. Further, if there was and typically the holder of the “title” has a special property in the goods is a bank involved if payment was to to the cargo, will be liable to make not so chargeable.” be via letter of credit, they too would contribution in GA in the event of be liable in GA for their interest and McKerracher J was similarly not a GA event and GA expenditure. “risk”. persuaded by OMSA’s submission The most common transfer of title that, as a consequence of the provision in a sales contract would This case reinforces the position, that many diferent meanings that are provide for title to pass at the the “risk” of loss or damage to the attributed to the words “owner” and discharge port as against the seller’s goods as assumed in an international “ownership” in a diverse selection production of the relevant shipping sales contract on shipment terms, of Australian maritime law related documents against the buyer’s does not equate to “risk” of liability statutes, that “owner” should be read payment of the sales price. However, to the ocean carrier for losses broadly in relation to the Act. His “risk” in the cargo, as between the associated with the goods as Honour made the point, that as far as seller and the buyer under the sales carried.

1It is noted, that Chevron was not named as a respondent in the proceeding.

Shipping Australia Limited Annual Review 2017 67 maritime law and insurance

in light of the UK reforms. The committee Instead, the duty extends to produced a report which MLAANZ circumstances which “a reasonable adopted and forwarded to the Attorney- person in the circumstances could be General in May 2017. The committee expected to know” (which replicates the drafted an Explanatory Memorandum for ICA) and, in a new s.266, permits the a Bill to amend the MIA, and a draft Bill. right to avoid where the non-disclosure is fraudulent. Where it is not fraudulent and The recommendations for reform have two characteristics: the insurer proves that it was induced to enter into the contract by non-disclosure (i) They seek not to stray too far beyond or misrepresentation, it may be able to the reforms introduced in the United avoid having to indemnify the insured, Kingdom; and or reduce its liability, and cancel the policy in certain circumstances (there (ii) Preference, wherever possible, has is a new provision, s.37A, dealing with been given to the recommendations cancellation). These provisions, which contained in the ALRC report, especially follow the ALRC’s recommendations, are if they were based on the Insurance for the most part consistent with the ICA Contracts Act 1984 (ICA) wordings in view and it is thought are less complicated of the fact that they have had exposure than the UK reforms. Comparable to over 30 years of consideration by the reforms have been made to s.25 and Australian courts. s.26 dealing with agents who efect insurance and the remedy available for The sections and the topics the Reform of misrepresentation respectively. recommendations deal with in the MIA, which are principally afected, and which One of the features of the MLA, which it is the Marine have been altered in the comparable UK thought caused the Federal Government provisions, are: to refer reform of the MIA to the ALRC for • Section 23 - Insurance is uberrimae fdei its consideration, was the strictness (and Insurance Act it was considered, arbitrariness) of the • Section 24 - Disclosure by insured warranty provisions, which if breached, permitted insurers to avoid the contract, • Section 25 - Disclosure by agent 1909 even though a breach may have had no efecting insurance causative efect on any loss or damage By STUART HETHERINGTON, • Section 26 - Representation pending which had given rise to a claim on the negotiation of contract policy. The recommendation for reform partner, Colin Biggers and Paisley, of s.39 provides that any breach of • Section 39(3) - Nature of warranty. President Comité Maritime warranty does not entitle the insurer to be International In relation to s.23 and the duty of discharged from any liability, although the utmost good faith, the committee policy can incorporate a provision to that has recommended a more detailed efect provided that it is only where the There was a signifcant move to reform set of provisions which replicate the loss has been proximately caused by the Australia’s Marine Insurance Act 1909 recommendation of the ALRC, which breach that the insurer can be discharged (MIA) in the frst year or so of the new themselves replicated the ICA (1984). from liability. century. The Australian Law Reform The major change is the removal of Commission (ALRC) made a number the right to avoid the contract, where In conclusion, other recommended of recommendations in its report to the the other party has not observed the changes have been made: to delete the Attorney-General in 2001. The report utmost good faith. The new provision limitation under the MIA of time policies included a draft Bill for an Act to amend implies into marine insurance contracts, to periods of twelve months; the addition the 1909 Act. It was never adopted by a duty to act with utmost good faith, and of the words “open or annual” to the word the Federal Government. also provides that if reliance by a party “foating” when describing policies which In its Insurance Act 2015, the United on a provision of the contract would leave the name of the ship or ships to be Kingdom reformed its Marine Insurance be to fail to act with the utmost good defned by subsequent declaration; a new Act 1906 (upon which the MIA is based), faith that party may not rely on it. The provision to require insurers to give notice in four particular areas: recommendation also confrms that to insureds where the policy contains the duty extends for the duration of the a provision that excludes or limits the • The duty of fair presentation relationship between the parties. insurer’s liability, where the insured contracts with a party that excludes the • Warranties and representations The duty of disclosure (s.24) has not been radically altered. It retains the duty to right to recover damages (thus limiting an • Fraudulent claims disclose circumstances which are known insurer’s potential rights of subrogation); a new provision clarifying the respective • Good faith and contracting out to the insured but removes the deeming provision under the MIA by which an rights of insureds and insurers to monies The Maritime Law Association of Australia insured is deemed to know “everything recovered from third parties and a and New Zealand (MLAANZ) appointed which in the ordinary course of business provision requiring insurers to pay interest a committee to consider the UK reforms ought to be known by him” and removes on claims in certain circumstances. and submit a report as to whether the right to avoid the contract for non- Those two latter provisions replicate Australia should seek to reform the MIA, disclosure per se. provisions in the ICA.

68 Shipping Australia Limited Annual Review 2017 ajg.com.au/marine

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AJGAA81A AJG001786-1117 GG AShippingG Australia Limited Annual Review 201769 AJGAA000180060 maritime law and insurance

Maritime arbitration – its place in the global economy

By PETER McQUEEN, Fellow of the Chartered Institute of Arbitrators

what is globalisation, what is the The IMF defnes globalisation as without international shipping, the global economy and what are their “the process through which an imo observes that half the world relationships to shipping? increasingly free fow of ideas, would freeze and the other half people, goods, services and capital would starve.4 leads to the integration of economies and societies.1 Around 80 per cent of global trade by volume is carried by sea, which The global economy has been enables the cheap transport of defned as “the economy of the raw materials and commodities, world considered as the international as well as the distribution of exchange of goods and services manufacturing goods all around the which is expressed in monetary units world. This means that shipping is 2 of account (money).” one of the most important factors The International Maritime of globalisation and at the same Organization (the IMO) says that time globalisation is one of the most “shipping in the 21st Century important factors of demand in underpins international commerce shipping.5 and the world economy as the most Thus, there exists a symbiotic efcient, safe and environmentally relationship between shipping and friendly method of transporting goods around the globe” and that “we live in globalisation, whereby globalisation a global society which is supported has increased the demands for by a global economy – and that shipping, while shipping, as an economy simply could not function if integrated component in a larger it were not for ships and the shipping goods movement system, which is industry.”3 the intermodal transport chain, has enabled globalisation.6 There are more than 45,000 merchant ships trading internationally, Shipping, as the backbone of transporting every kind of cargo. The globalisation, lies at the heart of world feet is registered in over 150 cross-border transport networks, nations and manned by over one and supporting global supply chains and a quarter million seafarers of virtually enabling the fow of international every nationality. trade.

1www.imf.org Glossary of fnancial terms, November 2006 2American English Defnition Macmillan Dictionary 2015 3International Shipping Carrier of World Trade, World Maritime Day 2005, IMO 4Ibid. 5Pocuca and Zanne, “Globalization, International Trade and Maritime Transport”, University of Ljubljana, Slovenia, November 2006 6Corbett and Winebrake, “The Impacts of Globalisation on International Maritime Transport Activity”, Global Forum, November 008, Guadalajara, Mexico

70 Shipping Australia Limited Annual Review 2017 In 2016, despite the lower oil and maritime arbitration centres in addition to the activities of ICMA, commodity price levels, weak global and importantly national maritime Historically, London and New York demand and a slowdown in China, arbitration associations, refects the have been the dominant traditional world seaborne trade volumes were international scope of the practice of centres of maritime arbitration. In over 10 billion tons, and shipments maritime arbitration and the breadth recent years, centres in Asia Pacifc expanded by over 2 per cent.7 of its place in the global economy. have gone to signifcant lengths to UNCTAD forecasts that the slowdown develop competent and cost efcient the place of maritime arbitration in in China will foster further growth arbitration and other ADR services. the asia pacifc region of the global in other areas such as the South- The economic growth in this region, economy South trade, (that is trade within and and the consequent increase in trade among developing countries) through fows to it, is being followed by a The Asia Pacifc region is the fastest initiatives such as the Chinese desire of the maritime and trading growing economic region in the “One Belt, One Road” initiative to community operating in Asia Pacifc, world today, noting the movement recreate the Silk Road, the Japanese to resolve their disputes in the of trade fows to it and of investment and Asian Development Bank’s region.11 and commercial activity, including “Partnership for Quality Infrastructure: maritime and transport activity. Maritime arbitration centres were Commercial parties operating in this Investment for Asia’s Future” and established in Japan, in Japan region wish to resolve their disputes the expansions in both the Panama Shipping Exchange, in 1926, and in here where, in many instances, they and Suez Canal. All will have the Russia, in the Russian Federation have arisen, and they wish to do so in potential to afect seaborne trade, to Chamber of Commerce, in 1930. In a timely and cost efective manner. reshape world shipping networks and China, CMAC was established within to generate business opportunities. the China Council for the Promotion of In the context of the practice of In parallel trends, such as Shipping international Trade in Beijing, in 1959. maritime law and of the conduct 4.0 within the Fourth Industrial In Europe, C.AMP was established of maritime arbitration, there is Revolution (4IR), data and electronic in Paris, in 1959. In the United both a wealth of knowledge and commerce, including Blockchain and Kingdom, the LMAA commenced in of experience to service this wish crypto currencies, continue to unfold London in 1960 and, in the USA, the in this region. Therefore, these and to entail both challenges and SMA commenced in New York, in commercial parties should be opportunities for shipping.8 1963. encouraged to nominate Asia Pacifc seats of arbitration and to specify the BIMCO has forecast that the shipping In the 1980’s centres were set up application of arbitration rules of Asia industry has had its work cut out this in Denmark, Germany, Spain, the Pacifc arbitration institutions in the year, noting that the IMF has forecast Netherlands and in Canada. Since arbitration agreements appearing in the lowest level of global GDP growth 2000, further centres have opened their contracts. this year since 2009.9 in Greece, Nigeria, United States, Australia, Hong Kong and Singapore. It remains squarely with all members Shipping is continuing to face of the Asia Pacifc maritime arbitration headwinds this year, given that In the last three years, CMAC has community to ensure that maritime the global economy is in uncertain opened an arbitration centre in Hong arbitration, as conducted in this region, meets both the needs and the territory, with a new administration Kong and, in the UAE, EMAC has opened in Dubai. expectations of those commercial in the United States, with Europe parties who are seeking reliable still mired in weak growth and with There are now over 20 maritime neutral seats of arbitration, efcient economic activity in China not arbitration centres operating world- dispute centres and skilled maritime showing signs of picking up sharply. wide. arbitration practitioners. Further, international trade faces a rise in protectionist rhetoric, with events In 1972 the International Congress the challenges facing maritime of Maritime Arbitrators, ICMA, was such as Brexit shaking the foundation arbitration and its future established as a forum of maritime of free movement of goods, services arbitrators and practitioners. It An admiralty judge recently observed and capital. conducts conferences every two that maritime arbitration institutions However, trade growth within Asia to three years to promote maritime were operating in “an increasingly 12 is outpacing trade growth in other arbitration and its conduct. This crowded space”. With the increase regions. The shipping industry can September ICMA will hold the 20th in the number of maritime arbitration draw some comfort from an expected of such conferences in Copenhagen, centres and their geographical spread as I have described, traditional rise in international trade growth in at which over 100 papers will be delivered on both maritime maritime arbitration institutions face the near term, as the IMF is expecting substantive law and arbitration increasing competition. growth in the volumes of global procedural law subjects, by speakers exports from 2016 to 2017 of 1.3 per from over 30 countries. As maritime arbitration centres cent, (that is, to 3.5 per cent in 2017 continue to market themselves to from 2.2 per cent in 2016).10 The development of these centres, their users as the “quickest, cheapest

7http://unctad.org/en/PublicationsLibrary/rmt2016_en.pdf p 11 8Ibid. 9Sand, “The Shipping Market in 2016 and Looking Forward”, BIMCO, Copenhagen, Denmark, January 2017 10http://dupress.deloitte.com “Global Economic Outlook Q1 2017, Shipping industry is facing a crisis” 11Singapore International Arbitration Centre, ‘SIAC Annual Report 2016’ (Annual Report, 2016). 12Justice Steven Chong, ‘Making Waves in Arbitration – the Singapore Experience’ (Speech delivered at the Singapore Chamber of Maritime Arbitration Distinguished Speaker Series, Singapore, 10 November 2014)

Shipping Australia Limited Annual Review 2017 71 and most efcient” way of resolving backgrounds, but who recognise a and shaped to meet the needs of maritime disputes, there may be the common heritage of law and practice. the particular industry to which they possibility of some commoditisation apply, here, shipping and international and lack of diferentiation in the The major challenge is the question trade. Those procedures must arbitration services being provided, of costs and how they are to be involve specialised practitioners. which would not be a positive managed in arbitrations. This must development. be met with practical wisdom and They must be, and be seen to be, a rejection of the driving features expeditious, cost efective, readily If the maritime industry continues to of what has been referred to available, responsive to the needs of witness large insolvencies such as as “industrialisation” of dispute the users, and be fair and neutral. OW Bunkers13 and Hanjin Shipping,14 resolution, particularly as evidenced ‘one-sided’ arbitrations involving one in litigation. the australian brand of maritime or more non-responding respondents arbitration may become more of the new norm. Arbitrators, including maritime arbitrators, have an opportunity to The Honourable Robert McClelland This may pose greater challenges, MP and Commonwealth Attorney as the enforceability of the fnal maintain the good health of what is a justice system in which they General, as he then was, in giving the award and drafters of institutional AMTAC Annual Address 2010, made arbitrational rules will need to take participate, by seeking to conduct arbitrations in a way which facilitates reference to an Australian brand of this into account when amending arbitration when explaining the 2010 those rules. this, namely by conducting a tight lean arbitration which refects amendments to the International A lean, skilled and efcient procedural procedural efciency and cost Arbitration Act 1974. He said it was model has always been a feature of efectiveness. his hope that those amendments maritime arbitration because of the would spark a cultural reform in high level of skill and specialisation The Honourable PA Keane, Chief Australian arbitration and would result required in understanding and Justice of the Federal Court of in an Australian brand of arbitration resolving many of the maritime Australia, as he then was, in which would deliver swift and cost disputes. These standards must presenting the AMTAC Annual competitive outcomes. He went on be maintained and deepened by Address 2012, noted that in the to say that “in short, the Australian the development of coherent and market-based economies of the brand of arbitration means we would efective educational and intellectual Asia Pacifc region the development become known as the place to come resources. of international arbitration is the to when you want your problem fxed preferred mechanism for the fast and fairly” and that we need to This can be achieved, as to a degree management of performance risk. He create and promote a local maritime it is already, by the co-operation of also observed that at a practical level, arbitration culture.16 bodies such as ICMA, the Chartered the views of international traders, Institute of Arbitrators, national and their priorities and perspectives I endorse the development of an and regional arbitration institutions are crucial to the prospects of Australian brand of all arbitration. and maritime centres, as well as, international arbitration in Australia. So that is the place of maritime importantly, signifcant maritime He concluded “one is reminded of arbitration in the global economy courts, such as the Maritime Courts the observation that it makes little and more particularly in Asia Pacifc, of the PRC, the Hong Kong and sense for sheep to pass resolutions in where the Australian maritime Singapore Courts, the London favour of vegetarianism while arbitration community is well-placed Commercial Court and the Federal the wolves remain of a diferent to play an important role in its future. Court of Australia. opinion”.15 However, there is much work still to This is not merely a reminder of the Arbitration must be seen as the be done, and challenges to be met, in need to maintain standards, but it most appropriate and the preferred order to advance maritime arbitration is also the key to maintaining the process of resolving disputes by its in Australia and to promote it, and the integrity of maritime law and maritime users, and that process must always Australian brand, in Asia Pacifc.17 dispute resolution as a separate, and be reviewed to see if it meets their indeed unique, body of commercial interests. www.petermcqueen.com activity. The providers of the arbitration In order for there to be a truly efcient services must listen to, and consider maritime arbitration regime which the views of those users, and must be will grow and prosper, there must be constantly reviewing and considering skilled, well-educated and respected possible changes to the arbitration arbitrators and counsel, who come procedures. They must be both from a broad and diverse range of specialised and globally recognised

13See: http://www.bbc.com/news/business-29961566 14See: https://www.theguardian.com/business/2016/sep/02/hanjin-shipping-bankruptcy-causes-turmoil-in-global-sea-freight 15Keane, “The Prospects for International Arbitration in Australia”, AMTAC Annual Addresses 2007-2016, p98 16McClelland, “Keeping an even keel – resolving maritime and transport disputes through arbitration to maintain commercial relationships”, AMTAC Annual Addresses 2007-2016, pp69-70 17I would like to acknowledge the assistance provided to me in the preparation of this Address: Chief Justice Allsop, Dennis Chan, Malcolm Holmes QC, Daniella Horton, Chris Howse, David Martowski, Magistrate Julie Soars, Brad Wang and Philip Yang.

72 Shipping Australia Limited Annual Review 2017 Shipping Australia Limited Annual Review 2017 73 maritime law and insurance

Australia’s proposed insolvency reforms: what impact they may have on Australia’s shipping and trade industries

By STEPHEN THOMPSON, partner and RANJANI SUNDAR, senior associate, Holman Fenwick Willan LLP

introduction administration. The proposed stay on where the counterparty: enforcement of insolvency clauses in Australia’s current Insolvency laws are (a) enters into a compromise contracts will likely impact upon the amongst the world’s most severe as or arrangement (“schemes of operation of Australian Admiralty laws, against companies and their directors. arrangement”) under Part 5.1 of the which currently permit creditors to For example, the right to include Corporations Act 2001 (Cth) (“act”); proceed directly against the vessel and “insolvency clauses” (also known as her owner, notwithstanding potential ipso facto clauses) in commercial (b) is placed into administration insolvency. contracts, as well as the broad regime under Part 5.3A of the Act (“voluntary for directors’ personal liability, makes it what are ipso facto clauses and administration”); or cumbersome for fnancially distressed how will the stay on enforcement (c) has a managing controller companies to successfully survive operate? appointed over all or substantially all what might otherwise be a temporary of its property. lack of liquidity. With the increase of An ipso facto clause allows one company failures in recent years, the party to unilaterally terminate a That is, parties will be unable Australian Government proposes to contract upon the occurrence of a to rely on insolvency clauses to grant some protection to company specifc event, such as a change in terminate their contracts where the directors and increase the resilience the counterparty’s fnancial position, counterparty enters into a scheme of of companies in fnancial trouble. regardless of the continued payment arrangement, voluntary administration There are two major proposals in the or performance by the counterparty or receivership. Relevantly, the stay Treasury Laws Amendment (2017 to the contract. These clauses does not apply where the counterparty Enterprise Incentives No 2) Bill 2017 are commonly found in modern enters into a deed of company (Cth) (“bill”) – (a) “safe harbour” commercial contracts, including arrangement or liquidation. provisions to protect directors charterparties. In order to assist from personal liability arising out of fnancially distressed companies to Whilst it is not possible to know the insolvent trading claims; and (b) a continue trading whilst restructuring full practical efect of the proposed stay on enforcing insolvency clauses their business, the Bill seeks to impose reform at this time, Charterers will in contracts, where a company has a stay on a party’s right to terminate likely be restricted from terminating the entered into certain forms of external or amend a contract in circumstances charterparty or more broadly, restricted

74 Shipping Australia Limited Annual Review 2017 from enforcing their rights, including enforcement but equally, to extend the example, with the passing of the Bill, to arrest a vessel in circumstances duration of the stay or to curb other the Court will have discretion to prevent where the charterparty is governed by enforcement rights of the company’s creditors from enforcing rights which Australian law or where the vessel owner creditors. may interfere with a Company’s ability to is Australian. Further, the greater impact continue trading. Where, in the ordinary of the proposed legislation is likely to be what is the expected impact on course, a party would make an ex parte on underlying trade contracts governed the australian shipping and trade application to arrest a vessel for unpaid by Australian laws and/or involving industries? debts, it is unclear how the reforms will Australian parties. Under the Admiralty Act 1988 (Cth), operate alongside the Admiralty Act 1988 (Cth), and what impact the reforms will Notably, under the Bill, a party still trade debts or cargo claims are classed have on the ability of a creditor to apply maintains the right to terminate or amend as maritime claims and creditors can for a vessel arrest. Where an arrest is so an agreement with its counterparty apply to the Courts to arrest a vessel afected, this is also likely to afect the for any other reason, such as breach in Australian waters in order to secure ability of the vessel owner to have her of contract for non-payment or non- their claim in substantive proceedings. released, and to have the costs of the performance. Traditionally, Admiralty law allows an individual creditor to proceed directly arrest paid by the arresting party. There are exceptions to the proposed against the vessel owner, despite existing hFw Comments stay on enforcement, which include: insolvency proceedings. This is contrary The protection against enforcement of (a) where the Court exercises its to Insolvency law: its cornerstone ipso facto clauses will apply to contracts discretion to allow a right to be enforced, being to distribute assets amongst entered into after the commencement where doing so would be in the interests the company’s creditors equally, in of the reforms on 1 July 2018. A of justice; proportion to the amount of their claims. Admiralty law presents unique potential workaround may be to review (b) where the relevant scheme features, which include the existence of the relevant contract to fnd a right administrator, voluntary administrator a substantial asset at all times, namely of termination based on an unrelated or managing controller consents to the the vessel and her cargo (which can be breach involving, for example, non- enforcement of a specifc right; or easily moved between jurisdictions), payment or other non-performance. Given the unique divergence between (c) where the stay would interfere with the likelihood of a vessel having several Australian Admiralty laws and the certain rights of secured creditors that owners across various jurisdictions and proposed changes to Australia’s allow them to enforce their interests. fag states, and vessels being commonly Insolvency laws, it will be interesting to owned by ofshore holding companies. Importantly, the Court’s discretion is observe the impact of the reforms on broad; it may be exercised to relieve These features are likely to be afected Australian companies within the shipping counterparties from the stay on by the proposed insolvency reforms. For and trade industries.

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Shipping Australia Limited Annual Review 2017 75 maritime law and insurance

include market information or pricing exchange. Any desired cooperation not falling within the block exemption will be subject to general anti-cartel laws. Also in August this year, the Hong Kong Competition Commission issued its frst block exemption order for agreements between shipping lines on operational cooperation. The block exemption permits Vessel Sharing Agreement- type cooperation, as long as the member lines hold less than 40 per cent market share. The block exemption does not permit cartel conduct or pricing discussions under Discussion Agreement-type cooperation. As discussed in our article in the Shipping Australia 2016 Annual, Australia has adopted a two-step halfway house. Competition law and On 18 October 2017, Parliament passed the Competition and Consumer Amendment (Competition Policy Review) Bill 2017 (Cth) empowering the liner shipping Australian Competition and Consumer Commission (aCCC) with the broad By NATHAN CECIL, partner and discretion to grant class exemptions, REBECCA NIUMEITOLU, lawyer, Holding Redlich but left intact Part X for now, and pending further consideration. Early indications from the ACCC have been International liner shipping has regulations to preclude liner carriers from that it is possible that a block exemption historically enjoyed signifcant meeting in conferences, fxing prices regime and Part X may continue to run exemptions from competition laws, and regulating capacities. The change in parallel. However, Part X provides including laws prohibiting cartel conduct was justifed on the basis that special very broad exemptions from competition and price information sharing and exemptions aforded to liner conference law. If it remains as is, there is little to fxing. The exemptions aforded by laws agreements could not be said to no need for any block exemption. In our such as Part X of the Competition and guarantee reliable services in a manner view, the making of a block exemption Consumer Act (Cth) were justifed as where cost benefts were passed onto by the ACCC will be the frst step being crucial to ensuring reliable and consumers. before Part X is then repealed. If part frequent shipping services for shippers. X is repealed, liner shipping conference In May 2017, the US House of cooperation will be subject to ordinary The assumption that signifcant Representatives Committee on competition laws, unless it falls within coordination between shipping Transportation and Infrastructure any block exemption issued by the companies ensures the reliability of resolved a proposal to amend the ACCC. their services to the net beneft of the Shipping Act 1984 (US), including to Australian market has for some time prohibit shipping lines from being a The big question then is – what form been challenged by the competition member of a Vessel Sharing Agreement will a block exemption take; will it only regulators and with it, the necessity and Discussion Agreement at the same extend to Vessel Sharing Agreement- of granting blanket competition law time, unless frst obtaining an exemption type arrangements; will it include exemptions. from the Federal Maritime Commission. Discussion Agreements; will it allow liner Whilst just a proposal at this stage, it members to be in one but not the other? This phenomenon is certainly not is suggestive of a growing international peculiar to Australia. The international Given the ACCC’s long-held and vocal consensus to divorce operation and regulation of liner shipping has been a criticism of Part X, we expect to see a pricing cooperation within competition perpetual attempt to strike a balance push to restrict or separate Discussion law exemptions. between a scheme which allows major Agreement-type coordination, consistent shipping companies to cooperate to In August this year the New Zealand with the international trends discussed deliver well-structured and reliable Parliament enacted the Commerce above. world trade, whilst avoiding provisions (Cartels and Other Matters) Amendment It must not be forgotten that shipping which foster what one MP described Act 2017 (NZ). Refecting the shifting is a global business. The burden of as the “veneer of secrecy” and its attitude towards regulating international the competition law regulatory regimes complementary uncompetitive liner shipping, NZ has granted a will be increased for shipping lines to elements.1 block exemption for Vessel Sharing the extent that they are not consistent Agreements, but not Discussion tightening the competition law across jurisdictions. For this reason, we Agreements. Permitted conduct screws on shipping strongly encourage the industry actively falling within the block exemption will to engage with the ACCC on the form of The European Union narrowed anti- include schedule coordination, space any block exemption, hopefully to ensure competitive exemptions for the shipping sharing and exchange, vessel pooling that a further unique and non-aligned industry in 2006. It amended its and equipment sharing, but will not creation isn’t thrust upon the industry.

1MP Kerr in respect of the Trade Practices (International Liner Cargo Shipping) Amendment Bill 1989 (Cth).

76 Shipping Australia Limited Annual Review 2017 maritime law and insurance

commenced under this Act: to prove malice, express or implied, (a) a party unreasonably and without but may only need to prove that it was good cause: unreasonable for the plaintif to have proceeded, based on the evidence (i) demands excessive security in available at the time the proceeding was relation to the proceeding; or commenced6. (ii) obtains the arrest of a ship or other property under this Act; or In Shagang Shipping Co Limited v Ship (b) a party or other person “Bulk Peace” (as surrogate for Ship unreasonably and without good cause “Dong-A Astrea”) (2014) 314 ALR 230, the fails to give a consent required under Full Federal Court set aside the arrest of this Act for the release from arrest Bulk Peace for want of jurisdiction. of a ship or other property, the party The charterers of Bulk Peace made an or person is liable in damages to a application for damages, but due to the party to the proceeding, or to a person arresting party’s subsequent insolvency, who has an interest in the ship or the application was not defended. property, being a party or person who The charterers’ application failed and has sufered loss or damage as a damages were not awarded7. Justice direct result. Rares commented as follows: Damages In its report “Civil Admiralty Jurisdiction” “a default judgment would have the (ALRC 33), the Australian Law Reform potential to create a chilling efect on Commission considered the test plaintifs wishing to avail themselves of in England and other common law their right to arrest ships in the Admiralty for 1 jurisdictions , and proposed a provision jurisdiction, which the Parliament chose that intended to make it easier for ship to create, in proceedings that may be interests to make successful claims, brought in rem under Pt III of the Admiralty unjustifed compared to the test in English law. It Act in accordance with the careful and stated, however, that “it should apply only considered views of the Australian Law to arrests which are made unreasonably Reform Commission in ALRC 33 and its arrest of as well as ‘without good cause’, to avoid clear intent to limit the circumstances in the possibility of a penalty where the which the claim of wrongful arrest in s 34 arrest appeared reasonable at the time but might be enforced.” turned out to be unjustifed”2. ships Very recently, the Federal Court awarded In other words, a plaintif will not damages for losses resulting from necessarily be liable under section 34 an excessive demand for security8. By JESPER MARTENS, special of the Act for any damages that the Applying the tests set out above, counsel, HWL Ebsworth ship interests may have sufered as a Justice McKerragher found that the sum consequence of its arrest, merely because demanded was at least $100,000 too the plaintif’s substantive claim was much and His Honour awarded damages Can ship owners or other parties unsuccessful or merely because the arrest for lost interest, which amounted to interested in the ship, obtain damages for of the ship has been set aside3. $1,200. losses sufered as a result of an unjustifed arrest of a ship in Australia? The frst requirement, acting So where does that leave the law in “unreasonably”, may look to assess a Australia? It seems that, even if the Those advising interested parties are Australian test is thought to be easier to often asked this question. Claimants wish person’s conduct to see whether it is satisfy than the English test, Australian to know the fnancial risks of a potentially unreasonable. The second requirement, acting “without good cause” may look to courts may still only award damages in unjustifed arrest. Ship interests wish to exceptional circumstances. know if they can recover damages caused the grounds on which a person has acted to see whether such grounds constitute by missing a slot or having a fxture It is worth bearing in mind that, in acting without good cause4. cancelled (or for other losses). most cases, ship interests provide Damages may be available without the security promptly in order to have the Section 34 of the Admiralty Act 1988 (Cth) ship released and often no signifcant (the act) provides: existence of either bad faith or gross negligence and they “may lie in cases of a losses are sufered. Therefore, it may damages for unjustifed arrest, etc. mere error in judgement”5. be some time before the courts have an opportunity to provide further guidance on 34.(1) Where, in relation to a proceeding Ship interests probably do not have the subject.

1The Evangelismos: Xenos v. Aldersley and Ors (1858) 12 Moo 352; (1858) 14 ER 945 - the shipowner can only recover compensation if the arrest was motivated by actual or implied malice (mala fdes or crassa negligentia) 2ALRC 33, para 302. 3Gregory Nell SC, paper presented on 21 May 2009 at the Federal Court of Australia Admiralty and Maritime Law Seminar on “Ship Arrests and Insolvency” 4DJ Cremean, Admiralty Jurisdiction: Law and Practice (2015) p114 5DA Butler and WD Duncan, Maritime Law in Australia (1992), Sydney: Legal Books. 6Michael Woodford, Damages for Wrongful Arrest: section 34, Admiralty Act 1988, ((2005) 19 MLAANZ Journal) 7Fuk Hing Steamship Co Ltd v Shagang Shipping Co Ltd [2015] FCA 682 8The Ship “Eye-Spy” [2017] FCA 708

Shipping Australia Limited Annual Review 2017 77 maritime law and insurance

Recent changes to the business equivalent of the rules concerning bullying at school - the new s46 of the Competition and Consumer Act 2010

By ROBERT WILSON, partner and TOM MORRISON, solicitor, Norton White Lawyers

Recent amendments to the misuse of had both one of the “purposes” set out indirectly through one or more other market power provisions in s46 of the above and that, in pursuing that purpose, persons. Competition and Consumer Act 2010 (Cth), the corporation took “advantage” of its which became operative on 6 November substantial degree of market power, were The critical new words in s46 are in bold 2017, will have a substantial impact on extremely difcult tasks for the ACCC and make the task of establishing anti- business, as they increase substantially the as the regulator, and for other afected competitive conduct under that section ability of the Australian Competition and interests. much easier. Under the new wording, Consumer Commission (the ACCC) and proof of anti-competitive conduct turns afected interests to take action against why the change: on establishing that the corporation has a alleged anti-competitive conduct. The change to s46 was prompted by the “substantial degree of power” in a “market” Harper Review which, in March 2015, and that such conduct “has or is likely to Misuse of market power occurs where a have the efect” of “substantially lessening business that has a substantial degree recommended that s46 be changed as it competition”. The task of proving that the of market power acts in a manner which was “defcient in its current form”, did not conduct of a corporation has the efect allows it to take advantage of its power “usefully distinguish pro-competitive from of substantially lessening competition, or to, for example, damage a competitor anti-competitive conduct”, and the “focus is likely to have the efect of substantially or exclude a competitor from a market. on ‘purpose’ is misdirected as a matter of s46 was intended to prevent misuse of policy and out of step with international lessening competition, under the new substantial market power, however the approaches”. provision is much easier for the ACCC than having to prove, as was the case under language of the former s46 made this a the new wording of s46: difcult task and there have been relatively the earlier wording, that the conduct was few successful actions against this type of As of 6 November 2017, the relevant engaged in for the purpose of substantially anti-competitive conduct. wording of s46 is: lessening competition. the earlier wording of s46: (1) A corporation that has a substantial As the ACCC said in a press release degree of power in a market must not commenting on the new wording of s46: Prior to the recent amendments, for a Court engage in conduct that has the purpose, to fnd that there was a breach of s46 there or has or is likely to have the efect, of “The Misuse of Market Power legislation was a two step process: substantially lessening competition in: is intended to strengthen the prohibition on the misuse of market power by 1. First, it was necessary to prove that (a) that market; or corporations. The current ‘purpose’ test the corporation had a substantial degree will be replaced with a ‘purpose or efects of market power and that it acted with the (b) any other market in which that test’, prohibiting a corporation with a “purpose” of: corporation, or a body corporate that is substantial degree of market power from related to that corporation: (a) eliminating or substantially engaging in conduct with the ‘purpose, damaging a competitor of the (i) supplies goods or services, or is efect or likely efect’ of substantially corporation or of a body corporate that is likely to supply goods or services; or lessening competition.” related to the corporation in that or any other market; (ii) supplies goods or services, or is Conclusion likely to supply goods or services, (b) preventing the entry of a person into indirectly through one or more other The recent amendments to s46 mean that or any other market; or persons; or that it will likely be much easier for the ACCC to take action in relation to alleged (c) deterring or preventing a person (c) any other market in which that anti-competitive conduct than previously. from engaging in competitive conduct in corporation, or a body corporate that is The ACCC has produced a helpful draft that or any other market. related to that corporation: Guideline document in relation to the new provisions. Shipping industry participants 2. Second, it was also necessary to prove (i) acquires goods or services, or is would be well advised to review those that the corporation took “advantage” of its likely to acquire goods or services; or substantial degree of power in the market. Guidelines and to consider how the new (ii) acquires goods or services, or is provisions might impact existing and future Proving that the conduct complained of likely to acquire goods or services, business conduct.

78 Shipping Australia Limited Annual Review 2017 maritime law and insurance

consideration of what goes wrong range of stakeholders (including TT Club), is a fundamental part of promoting compiled revised guidelines4 intended to be loss prevention and developing good acceptable across the container shipping practice; at its roots, the ability to learn industry; these have recently undergone from problems and avoid recurrence further revision. will fundamentally enhance operational proftability and reduce costs to a business. These two initiatives to put out good practice guidance for shippers and Initially, fve of the top 20 liner operators packers, demonstrate a range of matters put together an organisation aimed at that give rise to concern through the capturing key incident data in order to container supply chain. Experience from provide an early warning of trends, whether the reported incidents is a key driver for relating to cargoes that display dangerous the collation of guidance materials; the characteristics or unsafe practices in the problems that have arisen during the last container supply chain. year alone are motivating further working groups on topics for both regulated cargo, Now, some fve years later, the CINS Organisation1 has grown its membership such as charcoal, as well as non-regulated, to include some 16 liner operators, such as the issues arising in packing and representing over 70 per cent of container carriage of wet hides. Thus, while the slot capacity. While structural changes common perception may be that those and consolidation in the industry may cargoes designated as ‘dangerous’ give have an impact on these numbers, the rise to the greatest disruption, general likelihood is that the penetration across the poorly packaged or packed cargoes have Container industry will continue to grow – not least also proved problematic. because the value proposition is continually Furthermore, the drive to set out good strengthening. practice guidance inevitably extends lines strive At its core, CINS facilitates the capture by beyond simply engendering good packing liner operators of structured key causal practices, as exemplifed by the CINS’ work information in connection with cargo with the Container Owners Association and container related incidents. This (COA)5 and TT Club to identify the specifc to improve information capture explicitly excludes risks relating to using non-operating any shipper data in order to preclude any reefer containers to carry cargo that does anti-trust concerns. The objective of the not require temperature control. Such organisation is to highlight the risks posed practice brings benefts to the shipping cargo by certain cargoes and/or packing failures, stakeholders, but needs to account for in order to improve safety through the the diferences and sensitivities of these supply chain and specifcally on board specialised units. ships. The aspiration is that all signifcant incidents caused by the cargo itself, or However, one of the more disturbing and integrity persistent challenges apparent from the the container equipment relating to injury or loss of life, environmental concerns, reports is the level of misdeclaration of or damage to cargo and assets should shipments, whether through ignorance, By MARCUS JOHN, managing be reported, together with investigation error or fraud. Shockingly, many shipments director, Thomas Miller (Australasia) conclusions that identify causation. that are identifed as wrongly declared Pty Ltd in the booking process will be cancelled The past twelve months have seen prior to loading on board, merely exposing important developments for CINS. Not only another – less vigilant – carrier to the has the membership continued to grow on problem. This matter alone is a reason to tt Club’s marcus John explains the the strength of the demonstrable results, engage with CINS and its database, but benefts accruing from the container but analyses of the database, together with added to the mix of issues relating to cargo lines’ energy devoted to the Cargo member meetings, have led to initiatives packing and handling, it is clearly time to to improve safety and strengthen focus on incident notifcation system (Cins) call for concerted attention to all aspects of good practice across the industry. and the sharing of good operational cargo integrity. practice that is highlighting risks and TT Club has worked with CINS to update improving safety across the entire and expand the Club’s guidance in relation unit load industry. the accumulated to safe transport of coiled materials2, 1www.cinsnet.com evidence points to a variety of issues a non-regulated cargo that has led to 2www.ttclub.com/loss-prevention/tt-talk/article/tt-talk- compromising safety and leads tt Club numerous problems on board ship and on code-applied-transport-of-coiled-materials-134283/ to call for a concerted efort to improve land. Additionally, following a spate of fres 3www.igpandi.org Cargo integrity. involving a self-reactive cargo, Calcium Hypochlorite, CINS collaborated with the 4static.igpandi.org/igpi_website/media/article_ TT Club has long recognised the critical IGP&I (International Group of P&I Clubs)3 attachments/Calcium_Hypochlorite_Guidelines_CINS_ IGPI_January_2017_Version_2.pdf importance of sharing causal information to update and clarify the guidance that relating to incidents. Analysis and had last been revised in 2011. A broad 5www.containerownersassociation.org

Shipping Australia Limited Annual Review 2017 79 education and training Australian Maritime College

Signifcant growth for world class maritime education

By Professor NATALIA NIKOLOVA, interim principal, Australian Maritime College

The past 12 months have been a time Our nation-leading logistics amC drops anchor in sydney of signifcant growth for the Australian programme has been revamped in AMC has established a study centre Maritime College, a specialist institute response to the evolving needs of at the Australian National Maritime of the University of Tasmania. Our this important global industry. And Museum in Sydney’s iconic Darling plans to expand into key national and we have once again attracted Federal Harbour, and is set to ofer two international markets have come to research funding in the growing postgraduate degrees from February fruition with the establishment of a renewable energy sector, this time 2018. study centre in Sydney and delivery to lead a project mapping the tidal of our coastal seafaring programmes The master of engineering energy resource around Australia. in the United Arab Emirates. (maritime design) is targeted at engineering professionals already in We’ve continued to invest in our We look forward to seeing these the workforce, who wish to develop a world-class maritime education and initiatives develop further in 2018, career in the technical management research facilities, including state-of- and to working closely with industry, of maritime engineering projects, the-art simulation equipment and a government and regulatory bodies, including those in maritime defence, polar autonomous underwater vehicle to ensure our training, education naval platform development and capable of exploring deep beneath and research continues to meet their autonomous underwater vehicles. the Antarctic ice. needs. The master of business administration (maritime and Logistics management) is a business-oriented programme that equips graduates with a high level of understanding of the logistics and maritime industries and prepares them to undertake senior management positions in these industries. The establishment of the Sydney study centre helps to support our vision to inspire and shape the maritime world and strategically aligns with our student growth and industry engagement plans. Darling Harbour is an iconic location for the national maritime sector, and Sydney is the centre of operations for the Royal Australian Navy, Ready for action: a simulated engine fre challenges students to think quickly ofering AMC prominent exposure to (Image: Chris Crerar)

80 Shipping Australia Limited Annual Review 2017 recreational, commercial and naval activities in the area. Establishing a presence there allows us to strengthen ties with the surrounding ports, logistics, engineering and defence industries; as well as provide our students with access to internships and project work within those sectors. This move enhances and consolidates AMC’s role as a centre of national excellence, anchored proudly in Launceston. We will see Sydney-taught Masters students doing project and laboratory work in AMC’s new autonomous underwater vehicle, nupiri muka, is deployed in the Tamar Launceston, and the increased profle River at Beauty Point to conduct sea trials (Image: Dr Damien Guihen) will have direct positive impact for student numbers in Tasmania. new logistics degrees developed world-class auv launched to meet industry demand A pilot programme of two intensive, An innovative new autonomous fve-day short courses, covering the Logistics is the key to international underwater vehicle (AUV) capable of topics of supply chain management trade and we’ve developed two new diving up to 5,000 metres, operating and the fundamentals of naval logistics management degrees that underneath the ice and gathering architecture, were delivered from the will help support the developing data on Antarctic research missions, Sydney centre in November. needs of this vital sector. was unveiled at an ofcial ceremony in August. The $5 million polar Coastal seafarer training delivered The bachelor of Global Logistics vehicle was granted the name nupiri in the united arab emirates and maritime management muka, which means ‘Eye of the AMC has partnered with Abu Dhabi (honours) is a four year programme Sea’ in palawa kani, the language of Ports to deliver the Master up to 24 designed to prepare students for Tasmanian aborigines. metres Near Coastal and Master management careers in the maritime nupiri muka is funded by the up to 35 metres Near Coastal and logistics industry. Australian Government through the programmes to a group of 15 staf The course is unique because it Antarctic Gateway Partnership — a members. $24 million special research initiative combines core business principles, of the Australian Research Council This marks both the frst time we’ve such as accounting and fnance, (ARC) that aims to provide new exported our vocational education business law, International business insights into the role of Antarctica and training overseas, as well as the management, and strategic frst coastal seafaring qualifcation and the Southern Ocean in the global management, with learning that is climate system. AMC contributed $3 that has ever been ofered in the specifc to the maritime and logistics United Arab Emirates. million to the cost of the vehicle. industry, such as port and terminal The UAE is a strong seafaring nation management, ship operations The AUV will be maintained and and a fast-growing hub for the management, maritime economics, operated by a team of specialist research and technical staf at our international maritime industry. As logistics management and supply new engineering research facility, such, it has an immediate demand chain management. It is ofered at for qualifed seafarers. As a provider the Autonomous Maritime Systems Launceston, both on-campus and Laboratory. It is a vital research tool of high-quality seafarer training for distance modes. more than 30 years, AMC was ideally that will be deployed in the Antarctic by Australian and international placed to bring its expertise to the The master of Logistics researchers. country to meet this demand. management (advanced) is a two year programme designed for nupiri muka is the newest and one Sahar Rasti, Fatema Al Khaja and people seeking professional careers of the most capable AUVs in the Mahra Al Shamsi were the frst in the global domain of logistics world, for use under sea ice and ice three Emirati women to graduate as management, logistics strategies and shelves. It will allow us to further masters of 24 metre coastal vessels build our global reputation for and, along with their fellow students, supply chain management. engineering in extreme environments, were conferred with certifcates of The programme provides theoretical, and help foster strong ties with the competency at a ceremony in August. practical and applied knowledge, international research community. The Master up to 35 metre course suitable for both higher-level tidal energy funding boost was delivered in July 2017, and the professional and managerial roles. It students are expected to graduate in is ofered at Hobart, both on-campus A three-year project to map May 2018, following the completion and distance modes. Both courses Australia’s tidal energy in of their sea time and oral exams. will be ofered from 2018. unprecedented detail and publish the

Shipping Australia Limited Annual Review 2017 81 • AMC formally joined an international consortium which will help deliver Australia’s next- generation submarine feet. An MoU with four leading French institutions will result in AMC and the University of Tasmania working to deliver teaching and research which will inform the delivery of the next- generation submarine feet for the country. • Australian Navy personnel have completed an autonomous underwater vehicle (AUV) pilot training course designed and AMC’s fagship training vessel Bluefn, sails through Darling Harbour on a recent trip delivered by AMC. The bespoke to the AMC Sydney study centre (Image: Quentin Jones) course was the frst of its kind, designed to prepare future AUV pilots data in an online atlas, was awarded experiments to understand how port to conduct activities as part of a new $2.49 million in funding from the layouts impact the way that berthed Navy counter-mine project. Australian Renewable Energy Agency. ships are afected by passing ships. new leadership at the helm Tidal Energy in Australia – Assessing Other 2017 highlights include: Resource and Feasibility to Australia’s After 10 years at AMC, including over • AMC continued to invest in its Future Energy Mix will be led by fve years at the helm as principal, ship simulation training facilities, AMC in partnership with CSIRO and Professor Neil Bose has left to take opening a new simulator that University of Queensland. up the position of vice president enables our students to master (Research) at Memorial University, Researchers will assess how national engine room operations in one of Newfoundland and Labrador, tidal energy resources can contribute the most immersive environments Canada. to Australia’s energy needs, focusing in the world. The state-of-the-art on detailed feasibility assessments of engine room simulator features An international search is being sites with high potential. The project virtual reality screens for a life-like undertaken to fnd his successor, aims to overcome the barriers to training experience on a range of who will be responsible for delivering investment in commercial-scale tidal diesel and electric propulsion ship the next phase of AMC’s future. In farms by providing the information engines. It helps prepare students for the meantime, Professor Natalia that developers need to deploy their routine and emergency engine room Nikolova has been appointed technology in the most energetic tidal operations, troubleshooting, optimal interim principal and will oversee sites in Australia. operation, fuel economy and energy further transformation of AMC’s top naval architecture prizes for conservation. programmes. three staf members Three AMC researchers were recognised with prestigious international awards from the Royal Institution of Naval Architects (RINA). Dr Zhi Leong was awarded the WHC Nicholas Prize for the best paper by a researcher under the age of 30. The fndings from his work could help AUVs operate safely alongside much larger moving submarines. Dr Max Haase was awarded the RINA Medal of Distinction for his study on hull form design for the lowest fuel consumption of large catamarans. His work developed innovative fow simulation tools that are now being used as design guidelines for large catamarans. Shaun Denehy was awarded the prize for best paper presented to the RINA Isak Bowden-Floyd, Andrew Ronan, Konrad Zurcher and Brian Granfeld deploy Australian Division conference. His AMC’s new autonomous underwater vehicle, nupiri muka, in the Tamar River at project used physical, scale model Beauty Point, to conduct sea trials (Image: Dr Damien Guihen)

82 Shipping Australia Limited Annual Review 2017 Safer Shipping Smarter Ports

Leading the way with tomorrow’s technology since 1993 Proven UKC decision support

DUKC® remains the most reliable, trusted and advanced underkeel clearance system worldwide for optimising the capacity and dredging requirements of port channels “... if we were to and waterways. achieve the aims we had set we had Whether it be maximising the draft or tidal windows of a single vessel a clear choice; or maximising the total throughput of a convoy of deep draft vessels on a single tide, DUKC® has no equal in terms of safety, integrity and spend $15m on economic benets dredging or adopt DUKC® plus minimal Somewhere in the world on average a ship sails every hour under dredging and DUKC® advice DUKC® has ensured 25 years of safe operation in 25 ports and produced many billions of dollars in economic benets spend under $1.5m.”

DUKC® is Australian technology developed for Australian ports Captain Ray Barlow and environmental conditions and supported 2/ Operations Manager/ Harbor Master, OMC is the inventor and sole supplier of multi-award winning Port aranai DUKC® systems

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Awards Lloyd’s List Australia 2015 19th Australian Shipping & Maritime Industry Awards

www.omcinternational.com 03 9412 6500 Shipping Australia Limited Annual Review 2017 83 maritime safety Australian Maritime Safety Authority

2017 in review

By MICK KINLEY, chief executive ofcer, Australian Maritime Safety Authority

In 2017 we focused on We continued to infuence the expanding our organisational evolution of international maritime Dynamic separation occurs standards and obligations to protect capability to manage future in cargoes when the moisture Australia’s interests in a range of content is high enough that it challenges, including areas—including safe carriage of migrates to the surface of the strengthening our customer goods and environment protection. cargo in the hold. This occurs service capacity, and building dynamic separation of cargoes as the cargo compacts from on our reputation as a world underneath due to vibration and This year we played a key role in vessel movement. class maritime regulator. amending the International Maritime Solid Bulk Cargoes (IMSBC) Code to A key warning sign for masters further improve the safe carriage of is an ‘atypical’ motion of the cargoes and the safety of life at sea. ship (also known as a wobbling roll)—caused by the formation of In January 2015 the MV Bulk a slurry of water and fne particles Jupiter—transporting 46,000 tonnes on top of the cargo which creates of aluminium ore (bauxite)—sufered a free surface efect in the hold. a catastrophic list to starboard and capsized of the coast of Vung Tau, Over time cargo collects on Vietnam. Only one crew member one side of the ship and the out of 19 survived. Industry and movement of the free surface authorities suggested liquefaction liquid synchronises—resulting of the cargo caused the capsize. in further movement of cargo However, new research conducted and undermining the compacted by the Global Bauxite Working Group cargo—afecting the ship’s (GBWG) suggests it may have been weight distribution and stability. due to another moisture-related In extreme cases this can lead to phenomenon—dynamic separation. a sudden shift of the cargo and subsequent rapid capsize. Australia is one of the largest shippers of bauxite globally and we took a lead role in consulting with the GBWG during its dynamic separation IMSBC Code. These amendments research. Together with Brazil and include reclassifying bauxite from Malaysia—which also export bauxite a Group C (no known risks) to a in large quantities—we tabled the group’s research at the International Group A cargo—refecting that under Maritime Organization (IMO) in certain conditions it may present a September 2017. The research risk due to moisture. As a result of was endorsed and subsequent this, tests and schedules will apply amendments will be made to the to the loading and carriage of bauxite

84 Shipping Australia Limited Annual Review 2017 from May 2019. In Australia we impacts of sulphur emissions on the IT systems and online services— have applied these conditions since environment and human health, and focusing on the customer experience September 2017. beneft people living in port cities and and streamlining our internal business coastal communities. systems and processes. Our new We have worked with industry to website, launched in December produce a video (available on our national system update 2017, supports a user-focused website) on dynamic separation, to From 1 July 2018, we take over full warn mariners of the risk and warning approach—meaning users are guided service delivery for certifcates of signs. step-by-step through processes competency, operation and survey and applications. It is easier to fnd Low sulphur fuel implementation under the National System for relevant and timely information, and Domestic Commercial Vessel Safety From 1 January 2020 all ships and the mobile-friendly format allows (national system). In preparation, vessels operating in Australian users to access online services and we are working closely with industry waters will be required to use fuel support, from anywhere in the world. and State and Territory jurisdictions, which contains a maximum of 0.5 to build high quality and responsive Looking ahead per cent sulphur, or employ an services for our domestic customers, equivalent method to achieve the The next 12 months are shaping up as well as ensuring the current levels same result. We were active in the to be the busiest in our history. The of service are maintained. discussions on the sulphur cap work we have done over 2017, and implementation date—approved by We have invested in building a in previous years, means we are well the IMO in October 2016. In July, the dedicated customer contact centre positioned to meet both immediate IMO agreed to a scope of work to team, as well as strengthening our and future challenges. We remain assist with the implementation of the presence in the feld through our committed to our vision—safe and new requirement. In preparation for liaison ofcer network around the clean seas, saving lives—and to further IMO discussions in February country. Better capability in these meeting the needs of our expanding 2018, we are engaging with all key areas will help to ensure we can stakeholder and customer group. interested stakeholders on proposed support the expected increase in For further information on our implementation measures. enquiries to AMSA. initiatives, please refer to our website The new limit will reduce the In addition, we have modernised our amsa.gov.au.

Shipping Australia Limited Annual Review 2017 85 maritime safety Australian Transport Safety Bureau

2017 in transport safety

By NAT NAGY, executive director, Transport Safety, Australian Transport Safety Bureau

As the national safety The ATSB places emphasis on vehicles and passengers. A band of investigator for marine those investigations that have the severe thunderstorms passed across potential to deliver the greatest Station Pier, with little warning. transport, the Australian benefts to the travelling public. The As the wind peaked at over 110 Transport Safety Bureau is breakaway of the roll-on/roll-of kilometres per hour, the ship’s stern uniquely positioned to identify passenger ship Spirit of Tasmania II moved more than four metres of the signifcant safety issues. In from Station Pier at Port Melbourne wharf, stretching and fnally breaking in Victoria, in early 2016, is a recently the mooring lines. 2017, we completed a variety concluded investigation that refects of investigations, examining our particular focus on fare-paying The ship’s crew responded swiftly, passengers. manning the bridge and activating those incidents and accidents main and secondary propulsion. that align with our function The breakaway occurred on the This maintained the ship’s position, of improving public safety afternoon of 13 January 2016, as the preventing grounding until tugs and confdence across the passenger ship was loading cargo, arrived and helped return it to the transport sector.

86 Shipping Australia Limited Annual Review 2017 wharf.

Fortunately, no one was injured, but the elevated roadway and loading ramp arrangement on the shore sufered extensive damage. There was also minor damage to the wharf structure, and to the ship.

The weather conditions experienced in Port Phillip that day were not unusual or extraordinary. However, because the ship’s bridge was unattended, as was usual during a port stay, none of the crew saw indicators of the fast-approaching storm until just before the breakaway.

As a result of our investigation, a number of important safety actions have been taken by industry. Among them, the ship’s managers implemented changes to shipboard under pilotage is a high-pressure investigation reports and SafetyWatch weather monitoring and notifcation situation where errors can easily material. The information and arrangements, along with changes lead to serious problems. This year strategies that we’ve made available to procedures for adverse weather, the ATSB has, once again, included could make all the diference in moorings and mooring equipment. marine pilotage in its SafetyWatch preventing a future incident or The Victorian Ports Corporation’s list of priority safety issues, urging accident. Melbourne Vessel Trafc Service will all mariners to be aware of the range More information about managing broadcast Bureau of Meteorology of actions and situations that have safety issues can be found on the weather warnings. All masters of contributed to accidents during ATSB’s website www.atsb.gov.au/ ships in port waters, including those pilotage events. safetywatch. at berth or anchorage, are now One of the investigations that we required to ensure a continuous concluded this year highlights these listening radio watch is maintained. concerns. On the night of 15 March And fnally, the Bureau of 2016, while transiting the Prince of Meteorology continues to upgrade its Wales Channel in the Torres Strait, marine weather services. the Navios Northern Star struck a navigation buoy. This incident serves as an important reminder that weather monitoring, Our investigation into the incident and mooring systems and found that a planned course procedures, need to be regularly alteration was not made in time, nor checked and verifed for changing was it properly monitored by the weather conditions—especially for bridge team. Damage to the buoy ships with a large number of people and ship was limited to paintwork, on board. but the potential implications showed the importance of the active and The ATSB does not, however, continual participation of everyone focus only on prominent incidents involved, in ensuring safe and and accidents. We are working to efcient pilotage. improve safety across the entire marine transport industry. To As a result, we are urging pilots that end, we maintain an ongoing and bridge teams to use the range review of transport safety issues of available resources and bridge and unfortunately, all too often, we resource management techniques are seeing the same safety issues during pilotage. This signifcantly recurring. increases the opportunity to capture and manage any errors that may One issue, which has prompted occur in the complex environment of ongoing concern, is that of marine pilotage. safety during pilotage operations. Navigation through confned waters We encourage anyone involved in the marine industry to review our

Shipping Australia Limited Annual Review 2017 87 navigation Australian Hydrographic Service

Delivering Australia’s hydrography

By Commodore BRETT K BRACE, RAN, Hydrographer of Australia

Since my last article, titled Throughout 2016 and 2017, Defence that aim to continually improve the ‘Preparing for the Future’, in has also been fnalising many safety and efciency of Australia’s aspects of the First Principles Review maritime commerce. The HIPP is the 2015 Annual Review, much (FPR); a key recommendation being scheduled to commence in late 2019 has changed for the Australian the consolidation of Defence’s and is expected to be a multi-decade Hydrographic Service geospatial agencies into a single programme. (AHS), for the better. The agency - the Australian Geospatial- Intelligence Organisation (AGO). Consolidation of the AHO with 2016 Defence White Paper The Australian Hydrographic Ofce AGO is nearly complete. Changes articulated quite clearly that (AHO) has continued to focus on the to relevant legislation have been Defence would seek to replace philosophical shift from ‘products’ made that strengthen the obligation to ‘information’, notwithstanding on Defence, through the AHO, to the current hydrographic our products, such as charts and meet Australia’s responsibilities for capability with an ‘efcient publications, are the cornerstone of providing hydrographic services combination of military and our obligations under the Navigation in accordance with the SOLAS commercial hydrographic Act 2012. However, the way in which Convention. Additional resources, we design and deliver those products specifcally in regard to people, and oceanographic survey and services has received signifcant funds and systems, have been capabilities’. attention. made available to the AHO as an outcome of this consolidation. This The outcomes of the Defence White has enabled the AHO to progress Paper will change signifcantly, the the many strategies and plans that way in which the AHO manages are now delivering our future and the and coordinates the national future of the hydrographic services hydrographic surveying and charting that form a critical component of scheme – HydroScheme. Defence Australia’s maritime infrastructure. Project SEA2400 is working with the In practical terms, we have hydrographic surveying industry and commenced recruiting to our new other stakeholders, to determine the organisation structure, and we have most efective approach to delivering begun refurbishment of the AHO a HydroScheme Industry Partnership in Wollongong, which will include Program (HIPP). The HIPP, which replacement of all ICT infrastructure. will be coordinated by the AHO, As forecast in my earlier article, the will enable the AHO to undertake a AHO’s information-centric approach signifcant long-term hydrographic is ensuring that we are more easily surveying and charting programme adapting to contemporary and that will have a whole-of-nation future requirements, including focus. In the context of the shipping increased levels of detail in Electronic industry, the AHO will be in a much Navigational Charts (ENC) than is stronger position to deliver against possible on paper charts, improved evolving surveying and charting plans responsiveness to new information

88 Shipping Australia Limited Annual Review 2017 A section of the Band 6 Bathymetric ENC (bENC) covering the approach channel for Townsville, which is designed to overlay the existing Band 5 Harbour ENC.

and use of information in systems but in all cases will require close ofces adopt a focus on information beyond traditional marine navigation. cooperation from the ports and and electronic navigation. The AHO various service providers. is well on its way to being S101- In regard to nautical charts and ready, but there is still much more to related services, the AHO has The increased capacity of the AHO do for the AHO and internationally, commenced work on providing to meet the evolving demands before S101 ENC become a higher resolution ENC to support of the maritime industry has also mainstream navigation product. pilotage of very large vessels into allowed the AHO to better support ports where the handling and under our neighbours. On World Maritime Although the resource constraints keel clearance safety margins are Day 2017, Australia signed a of the recent past have been particularly small. The position memorandum of understanding with loosened to some extent, the need and movement of these vessels Solomon Islands for the AHO to to prioritise production activities to is monitored quite diferently in an assume the role of Primary Charting meet immediate needs while shaping electronic world. Efective bridge Authority. Paper charts and ENC our future capabilities will remain. resource management requires of Solomon Islands waters are now The capabilities of the AHO and high resolution information that produced and issued by the AHO the broader AHS will be enhanced must be available more widely than on behalf of the Solomon Islands further over the next few years. As just on a pilot’s portable pilotage Maritime Safety Administration I prepare to hand over the role of unit. As such, by working with the (SIMSA). The specifc needs of Hydrographer in December (2017), Harbour Master, pilots and the port’s local and international shipping in I am very confdent the future of the hydrographic surveyors, the AHO Solomon Islands waters can now be AHO and the AHS is very bright, has started to publish ‘bathymetric better met through a tailored charting as is the future of the hydrographic ENC’ (bENC) specifcally tailored solution, overseen by SIMSA. services we provide to mariners and to the needs of individual ports. the shipping industry. The resulting Band 6 bENC cover Also, as forecast in my last approach channels and manoeuvring article, was the need for the AHO areas, and augment the detail to establish the underpinning already available on standard Band information framework to drive 5 ‘Harbour’ ENC. The bENC are the International Hydrographic being made available both locally Organization’s (IHO) S100 ‘Universal and internationally, allowing ship Hydrographic Data Model’, with a staf and pilots to access the same primary aim of better informing the high resolution information – making mariner and maritime stakeholders. navigation decisions of the same Linked to the S100 standard is the information. The number of ports will next generation of ENC – S101. The grow as AHO production and update value to the mariner of the S101 ENC capacity and efciency increases, will only be realised if hydrographic

Shipping Australia Limited Annual Review 2017 89 navigation Brisbane Marine Pilots

Supporting the pilotage community By ROSS NICHOLLS, chairman, Brisbane Marine Pilots

Brisbane Marine Pilots (BMP) prides regions. three-year introduction period for the itself on working with the pilotage system’s “bedding in” before CPD To ensure the outcome for the and broader maritime community accreditation becomes the primary training and development of pilots in to continually improve the standard element for an MSQ issued pilot’s Queensland was contemporary, MSQ of services provided, not only in the license renewal. established a Queensland Pilots CPD Maritime Safety Queensland (MSQ) Working Group, with representatives BMP has grasped the opportunity jurisdiction but throughout Australia from AMPI, MSQ, BMP and all other to refresh their previous pilot and internationally. Pilot employers, including pilots training arrangements to incorporate We are currently working with from each pilotage region and the the elements of the CPD model MSQ and the Australasian Marine AMOU. The working groups task was into their pilot’s training lifecycle. Pilots Institute (AMPI) to implement to bring together a workable CPD Training under the new model has the new Continuing Professional training platform from the two CPD commenced and relationships with Development (CPD) programme models that were in varying stages of course providers are being updated to enhance Pilot training and development. to capture and deliver the future development in Queensland, and training needs on a commercially with the International Users Group The Queensland Pilots CPD Working sustainable basis. Since (IUG) to develop and ofer the Group agreed to adopt the AMPI commencement of the new system, International Standard for Maritime CPD model, recognising a role of BMP has obtained CPD accreditation Pilot Organizations (ISPO) to the a professional body is to develop for their “inhouse” simulator training pilotage world. and manage a CPD programme. programme, allowing BMP pilots In conjunction with having the to accumulate CPD points towards Continuing professional professional body developing and meeting their annual training targets. development administering a CPD system, the BMP recognises the signifcant During 2015 Maritime Safety pilots of the group recognised the benefts that are derived by Queensland (MSQ) considered the signifcant professional benefts of investing in training and professional introduction of a uniform standard having a contemporary CPD model development for their pilots, who are for training and development of for an individual pilot and a “frst at the forefront of protecting their pilots in Queensland, which would class” standard for marine pilots port’s environment and infrastructure. underpin the State’s pilot licensing nationally. arrangements. Following discussions For BMP pilots, the AMPI CPD model ispo with BMP and other pilot employers, boosts the existing pilot training The ISPO (International Standard MSQ set about establishing a arrangements and now encourages for Maritime Pilot Organizations) is a pilots CPD framework for the 70 an increased engagement in a range standard of best practice for pilots or so licensed Queensland pilots. of activities designed to enhance and pilot organisations, for improving Coincidentally, AMPI, in consultation existing skills or develop new skills safety and quality, while providing with a broad group of stakeholders, and experiences. self-regulation and transparency in had already developed and launched pilotage standards to all port-related a CPD training programme that was The new CPD system for Queensland stakeholders. being trialled by a small number of marine pilots commenced operating volunteer pilots from a variety of from March 2017, and includes a The responsibility for the ISPO

90 Shipping Australia Limited Annual Review 2017 standard lies with the International Users Group of ISPO-certifed organisations (IUG). BMP has had a director on the board of this organisation since 2014. Like most organisations, the ISPO has a vision and mission: Vision - ISPO is the preferred quality standard for maritime pilot organisations worldwide;. Mission - Gives stakeholders clear and transparent information regarding the quality and reliability of the service provided by maritime pilots. ISPO started in 1996 as a project by the International Maritime Pilots Australia. organisations will be checked by an Association (IMPA). The work group independent maritime Classifcation The ISPO user group hold a consisted of: Rotterdam, Hamburg, Society during their annual external conference each year to review Brisbane, Antwerp and Hong Kong. audit to ensure that they comply with and improve the service provided The section on fatigue management the new requirements. was contributed by one of our own by the group, both to certifed pilots. pilots organisations and industry Brisbane Marine Pilots are hosting stakeholders. It also reviews next year’s ISPO International User In 2012 BMP became the ninth suggested improvements to the Group conference and meetings, organisation to become certifed, standard, as proposed by the which will be held here in Brisbane followed by Port Hedland in the working group. Unlike most industry on 17and 18 October 2018. same year. There are now 18 conferences, at an ISPO IUG Pilotage organisations or industry pilotage organisations certifed to meeting, if an upgrade is agreed to stakeholders interested in attending ISPO throughout the world, with by the membership, it is added to the conference can contact us at several currently working to achieve the standard and implemented in ISPO2018Brisbane@brisbanepilots. certifcation, including another two in the following year. All certifed pilot com.au

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Shipping Australia Limited Annual Review 2017 91 navigation OMC International

University partnership recognises OMC’s expertise as world- leader in real-time UKC management

By DR TERRY O’BRIEN AM, executive director, OMC International

A prime concern of shipping is full circle, case study examples of OMC believes that this intensive maintaining a safe under keel our latest Series 5 technology were week-long postgraduate Port Access clearance (UKC) to avoid the risk presented in a new engineering and Navigation unit, developed with of a grounding. In May 2017, OMC course at the University of Melbourne the support of Ports Australia and celebrated its 30th anniversary since in 2017, which refects a growing input from the maritime industry, will my resignation from the University become a standard education tool awareness of the value of our of Melbourne to establish OMC, and for future maritime engineers. It is to develop the engine for a working technology to our port and shipping an elective in the Civil, Environmental dynamic UKC system (DUKC®) for sector. It’s very specifc content is and Mechanical Engineering Masters commercial shipping. It became focussed on the practical application programme at the University, and operational and frst replaced static and experience of our UKC is also part of the Port and Harbour UKC rules in the early 90s. Moving management technology. Engineering Graduate Certifcate,

92 Shipping Australia Limited Annual Review 2017 which is the only formal qualifcation in involvement in relevant research projects issue with a presentation on its latest port engineering ofered in Australia and at a tertiary level, to forge collaborative web-based Series 5 technology. New Zealand. industry partnerships which could Similarly, OMC is ofering users from our strengthen the possibility of our Federal As University of Melbourne’s Ocean Australian DUKC® ports an opportunity Government establishing a Melbourne- Engineering Professor, Alexander to share their operational experiences based Centre of Excellence in Maritime with each other and with OMC Babanin, said when announcing news Engineering. of this course, frst taught in September personnel. The frst one-day meeting 2017: “under keel clearance is sharing expertise and experience with was held for all our Western Australian the single most important issue industry port users in Perth, in November 2017. This year we will host further of shipping in ports, channels and A related development which has annual gatherings for our Australasian shallow areas, which is not taught in facilitated education, collaboration and users regionally, or at our Melbourne standard engineering programmes at communication within our industry has headquarters. universities and so it is a must for this been the opportunity to participate port engineering course.” in industry workshops and forums. delivering tonnage records and sailing The course content is shaped by this The Ports WA community convened a ships deeper Biennial forum to provide an opportunity very specifc focus on the vertical Port Hedland has a large tidal range and for WA “port stakeholders to closely dimension where, depending on the size long transit time and OMC continues engage with a substantial number of of the ship, 1 centimetre of additional to work closely with PPA to optimise decision makers within the ports sector”. draft can mean up to 150 tonnes of extra clearance depths and make the most of These included port chief executive cargo. each high-tide, to send out as many of ofcers, customers, service providers the larger iron ore carriers as possible, We are very fortunate to have industry and government representatives. experts such as Captain Eric Atkinson under DUKC® advice. One of our frst OAM, president of the International The agenda of the 2017 ‘Safe Ships signifcant joint achievements was in Harbour Masters Association from 2012- - Safe Ports’ forum, hosted by the 2015 when the port of Port Hedland used 2014, to co-ordinate and deliver some of Pilbara Ports Authority (PPA), and run our technology to sail a record eight our course content. Port regulators and sequentially with the Ports WA Forum restricted Capesize ships on the one tide. shipping companies will also contribute over four days, provided an overview of In March 2017, in a joint efort with PPA, to the course. the latest developments in the PPA- our system helped enable the largest managed ports of Ashburton, Dampier ever iron ore shipment – 270,006 tonnes OMC is keen to further develop content and Port Hedland. Key themes included – to leave Port Hedland on the Fortescue with Professor Babanin, the course risk, regulations and technological Metals Group loaded ship HL Tubarao, at convenor and original developer of this advances. General Manager Operations a record sailing draft of 19.95 metres. unit, previously taught at Swinburne Captain John Finch said success for all Meanwhile, at the bulk port of Geelong, University for 10 years. port users is the Victorian Regional Channels Our partnership with the University based on “a shared vision of safe and Authority adopted Series 5 in 2015, as a of Melbourne is part of our ongoing efcient operations within the port way of admitting larger ships with more strategy, through teaching and environment”. OMC addressed this cargo, without requiring any changes to

Port Hedland

Shipping Australia Limited Annual Review 2017 93 outputs of UKCM services to be displayed for users. This Project Team comprises a number of IHO member States including Sweden, France, Korea, USA, Russia, Finland, UK and The Netherlands, and is chaired by a representative from the Australian Maritime Safety Authority (AMSA). This work is expected to be completed in 2018. In May 2017, OMC moved its Melbourne headquarters to nearby larger premises to allow for the employment of additional experts, postgraduate students and short-stay collaborative visits with global maritime partners. the future With our unique long track record Port Hedland of leading industry experience and innovation in UKC management, OMC now seeks State and Federal the channel infrastructure. In the right the primary aim of mitigating the risk of circumstances, ships may be allowed disruption to the port should an accident Government recognition and support of up to 12 metres draft, and that means block the channel. It will provide passing our Australian-developed technology, a cargo uplift of 1350 to 3000 tonnes lanes and refuge zones. which has generated millions of export per ship. For one of the port’s shippers, dollars. DPCM®, an innovative tool developed Viva Energy, each extra 10 centimetres in by our research and development While we have always considered ship draft results in a saving of about $1 department over the past fve years, the horizontal manoeuvring aspects million a year. involves the embedment of our Series operationally, this is now requiring On 11 October 2017, an Exxon tanker, 5 system within a model of the many greater focus with the wider and the Aspen Spirit, sailed safely into the diverse maritime operations which occur longer ships navigating draft-restricted port of Melbourne, as the deepest ship at Port Hedland. Its purpose is to assess approach channels. OMC’s more that has ever come into the port. Two the impact on port capacity of discrete comprehensive approach of designing OMC engineers on board undertook changes to each operational or design both the optimum channel width, as GPS validation and the full scale variable, for example, the availability of well as the depth, will provide a one- tugs and pilots. measurements provided excellent stop shop for the optimum design and correlation with the results predicted by Analyses undertaken using DPCM® is operation of shipping channels and the DUKC® system. the basis by which the declared port manoeuvring basins. expanding through the logistics chain capacity was increased by 16 per cent in 2015. Finally, I would like to conclude by Since 1995, Port Hedland, the world’s saying that the International Maritime largest bulk export port, has used our omC’s continuing role in uKC Organisation’s theme for World Maritime technology to help sail ships which are education and research Day in 2017 – ‘Connecting Ships, Ports only 90 centimetres from the bottom To ensure that Australia remains and People’ – is a timely reminder of of the seabed. The 45 kilometre long internationally recognised as a centre why our company continues to grow Port Hedland channel is 183 metres of UKC risk mitigation and shipping its specialist maritime engineering wide at its narrowest point. PPA’s chief efciency management, OMC continues workforce in response to the needs of executive ofcer, Roger Johnston, has to support scientifc research. In a the shipping industry. Ships are getting described it as “like threading the eye of further collaboration with the University a needle” and that “if you run 5 degrees larger and it is crucial that our industry’s of Melbourne in early 2017, our CEO, of true at the Port Hedland channel you potential leaders are better informed, and Peter O’Brien, is leading a navigational will ground your ship in 26 seconds”. He our technology, with its safety record of aid modelling project with other industry added that this is where “the DUKC® more than 160,000 deep-draft sailings partners. system comes in”. worldwide, is recognised and supported After winning AMSA’s competitive by our Government. Two recent research developments tender for a UKC management (UKCM) to which PPA and OMC have jointly In March 2018, OMC celebrates the 25th system for the international waters of contributed, and for which our anniversary of the implementation of the Torres Strait in 2010, and supporting methodology is, in both cases, used the operational system since 2011, frst DUKC® operational system in the conjunctively with PPA’s input are: The OMC has been invited to provide its coal port of Hay Point, Queensland, and Channel Risk and Optimisation Project DUKC® technology and experience to we thank the Australian shipping industry (CROP), a PPA project, and our Dynamic guide the current Under Keel Clearance for its trust and support in the evolution Port Capacity Model (DPCM®). Management Information Project Team of our technology, from its initial focus PPA’s CROP project ran for three years (UKCMPT). The brief is to develop an on planning deeper sailings and wider and provided the optimised design basis IHO S-129-based product specifcation tidal windows, to now include advanced for a $120 million dredging project, with for UKCM information to enable the onboard risk mitigation functionalities.

94 Shipping Australia Limited Annual Review 2017 1–3 May 2018, Gold Coast, Queensland

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Westug and Engage Marine - year in review

By MARK MALONE, chief executive ofcer, Engage Marine

engage marine is an australian Following the launch of Engage Marine, Finally, we are proud to announce that marine operations provider. engage we entered into a Memorandum of an alliance between Westug and Kotug marine was established to lead Understanding with the Australian Australia Pty Ltd (KOTUG) has been change in the way marine operations Institute of Drone Technology™ to awarded the Towage Services contract in are delivered, with a key focus on deliver drone technology to the marine Port Hedland, by Fortescue Metals Group collaboration, technology, innovation industry. We are currently in the process (FMG). This alliance combines KOTUG’s and contemporary business models to of undertaking the necessary training to global expertise in Rotor Tug design drive this change. become a fully CASA (Civil Aviation Safety and operations, with the local operating experience and capability of Westug. 2017 was an exciting year for Engage Authority) accredited drone operator, Westug will manage the operations of Marine and Westug, with the ofcial which is due to be fnalised in early 2018. the contract in delegation from KOTUG. launch of Engage Marine at the Regional In addition to this, we have consulted The contract includes the manning and Ports event in Wollongong, in August. with numerous port authorities, private operations of all tugs included in FMG’s Engage Marine was launched to lead clients and government departments towage license at Port Headland. change in the way marine operations throughout Australia to discuss the are delivered throughout Australia, and implementation of drone technology into As 2017 nears to an end we are well is built upon the successes of Westug, their operations. This collaboration will positioned for 2018. We will continue which has over 25 years’ experience in be a key focus in 2018, as we continue to to grow Engage Marine and work with marine operations in Western Australia. work with Australian ports and operators our numerous strategic partners to work to increase efciency, improve safety and A key part of 2017 was dedicated collaboratively and achieve of our goal of to building the fundamentals for the provide new capabilities utilising drone changing the way the marine operations establishment of Engage Marine and also technology. are performed within Australia. cementing the existing Westug business as the head of operations for the Engage Marine Group within Western Australia. Key activities included: the strengthening of our management team with several key appointments, the implementation of our safety strategy ‘Home Safely, Every Day’, which demonstrates our commitment to the health and safety of our people and continued work with our long-term client, Rio Tinto. During 2017 we also entered into our fourth port in Australia, and frst outside of Western Australia, with the commencement of a contract in Whyalla, South Australia, where Engage Marine currently provides tug manning and operations within the Port of Whyalla. Additionally, we are currently working on several opportunities to expand our presence and capabilities into other ports around Australia.

96 Shipping Australia Limited Annual Review 2017 towage

Exciting times in shipping – building our business

By STEFFEN RISAGER, managing director, Svitzer Australia

What a year 2017 has been for ports at which they call. We’ve been other ports for market share we the global shipping industry, the pleased to bolster our footprint in are increasingly aware of emerging Australian maritime sector and Svitzer support of the cruise industry with competitive developments from other in Australia. the introduction of a new pilot boat entities, some new and some looking in the port of Eden, much in line with to expand their footprint. At Svitzer For many in the shipping industry, the introduction of the new compact we welcome competition, as it drives 2017 was a continuation of a tough tug Svitzer Bondi, into Port Jackson us to constantly challenge ourselves competitive and economic period. previously. and strive for greater efciency, we This period has seen some shipping aim to disrupt ourselves rather than lines fold and others merge; the We have also been improving the be disrupted. recent Maersk Line and Hamburg Süd tugs we operate in 28 ports around acquisition, just one such example. Australia. 2017 has seen us invest In 2017 Svitzer Australia has worked nearly $100 million in new tugs and hard to remain our customers’ But at the same time we have seen welcome seven new tugs to Australia. preferred towage provider, and in some tremendous developments in This investment is making ports safer 2018 and beyond we aim to do even the Australian maritime sector, which and more efcient. Svitzer introduced more. We have a number of exciting are notable and bode well for an new capabilities in Melbourne, plans to help make Australian ports exciting 2018 and beyond. which will allow the port to better safer and more efcient. Whether We saw a record exchange of TEU at utilise Swanson Dock. In Darwin we this is through our innovation agenda, Port Botany a little earlier this year, introduced two new tugs, the Svitzer optimising our daily operations or and kudos to both MSC and Patricks Stokes and Svitzer Palmerston, that cost leadership; our goal is to service terminals for this record-breaking will service the INPEX project and our customers and the ports we feat. We’ve also seen the largest will be part of the four-tug operation operate in. container ship to ever call at the port Svitzer provides to the port. I hope everyone had a successful of Brisbane with the calling of the However, in recognising the continued 2017 and we look forward to working Susan Maersk in October, enabled difcult market environment which with you all in 2018. by the innovative work of Port of our customers and stakeholders Brisbane in their new NCOS channel endure, we at Svitzer have launched clearance system. a number of initiatives aimed at In keeping with frsts, we celebrated generating greater efciencies and the frst gas at Chevron’s Wheatstone synergies aimed at our value chain. terminal in Western Australia, which This need for greater efciency in we were proud to play our critical yet the maritime industry is also what humble part in. We look forward to motivated Svitzer in a number of celebrating the same feat with Inpex operational decisions in 2017. in their Darwin LNG terminal during The recently announced extension of 2018. the Svitzer/Smit deal in Melbourne, We have also been pleased to see Sydney and Newcastle, with the the continuing burgeoning cruise addition of Brisbane, is all about industry in our Australian ports and maximising asset utilisation and the positive contribution to the local therefore improving efciency in economy they bring, to not just those ports. Whilst we will continue capital cities but also the regional to compete with Smit in these and

Shipping Australia Limited Annual Review 2017 97 container management

The digital platform improving the landside efciency of ports

By MICHAEL BOUARI, chief executive ofcer, 1-Stop Connections

The ongoing challenge for the port • 59 per cent improved IT staf “Even for organisations that may community is how to optimise productivity by 25-49 per cent have previously entered into many operations. That’s just one of the supply or marketing partnerships, if Improvements in all of these can be fndings in new research by terminal they have not engaged extensively in achieved by implementing a digital operating system provider, Navis. product development alliances, which platform, such as the 1-Stop’s Vehicle afect core operations, they may In this article we’ll look at the survey Booking System (VBS). encounter signifcant challenges,” the results, and other evidence that the importance of a universal authors said. shows the importance of a VBS to platform the smooth operation of the landside “Opening up interfaces and allowing supply chain. As advances are made in data others to contribute to their products, collection and AI-based processing, possibly afecting central product results of the navis survey the barrier to improved efciency is propositions, may be a very hard, and thus identity threatening, shift.” Optimisation to improve productivity no longer CPU speed or hard drive was the biggest challenge for three size. The new problem is how to The point about opening up quarters of the terminals surveyed get the various digital platforms in a interfaces and allowing collaboration by Navis. When asked about other supply chain to talk to each other. is key to the future of supply chain systems. It hints at the importance concerns, the top three responses The aim is smoother communication of an easily assimilated VBS as were: between one business and another. the basis of a successful universal Last year, former IBM CEO Samuel • Optimisation – 76 per cent platform. J. Palmisano, pointed out that digital • Cost reduction – 67 per cent platforms are a leading force for 1-stop’s vbs digital platform and • Improving yard operations – 52 globalisation. “I’ve been working the landside supply chain in technology for 40 years, and I’ve per cent The search for an Australia-wide never seen anything move this fast,” solution for port optimisation Navis released the fndings to show he said. continues. In August 2017, Shipping the return on investment that its Australia Limited (SAL) submitted to customers achieved by selecting its According to Palmisano, companies a national inquiry into supply chain N4 terminal system. Navis customers achieving the largest scale today use strategy. experienced the following benefts an extensible platform ecosystem. with N4: It’s not about how many assets they The organisation highlights the own, it’s about the universality of the need for an integrated supply chain • 51 per cent improved yard platform they use. network that efciently links container productivity by 25-49 per cent The importance of the platform transport with intermodal and road • 57 per cent improved gate is echoed in a Harvard Business freight sectors. They recommend productivity by 25-49 per cent School working paper on platform “redirecting infrastructure resources transitions, whose authors committed to networks parallel to the • 67 per cent improved reporting coast line to create hyper-efcient emphasised the importance of quality by 25-49 per cent and resilient networks perpendicular platform-based businesses that to the coast.” • 58 per cent improved safety by “harness the innovative capabilities of 25-49 per cent complementors.” Earlier this year, the issue of platform

98 Shipping Australia Limited Annual Review 2017 interfaces was raised in Melbourne • 180-plus confgurable business That’s because the 1-Stop VBS when the Victoria International rules, across multiple categories such requires trucks to book slots in Container Terminal (VICT) received as booking and manifesting, stack advance for picking up and dropping the frst ship at its new automated run-in and run-out, billing/invoicing. of containers, which improves trafc container terminal. Container predictability. On heavy vessel days, • Integrated booking and transport operators using the new the carriers can plan how many manifesting so that carriers know system registered with VICT through exactly when to arrive at the terminal. trucks they will need, and when. 1-Stop’s digital platform to use the In addition to improving transport Vehicle Booking System (VBS). • User-defned billing processes and communication synergy across Drivers also completed on-line MSIC that integrate with your fnancial POAL, the VBS has also streamlined inductions through 1-Stop before systems. of-peak truck travel times, reducing they could access the terminal. • Real-time messaging via multiple trafc excess noise and congestion Both registration and induction could channels, including message board around the port. be completed through 1-Stop’s email, browser pop-up and mobile Improving the fow of containers digital platform because of its device application. through the landside of the supply interconnected eco-system capacity • Enriching the TOS with eco- chain requires a platform with to interface with other systems. The system data for better control, universal applicability – a platform landside supply chain problems management and optimisation of of platforms. 1-Stop’s VBS has that the Navis research identifed external constraints shown in terminals both in Australia – optimisation, cost reduction and and overseas that it can meet the improving yard operations – are ports: gateways, not destinations ongoing challenges of supply chain solved by 1-Stop’s digital platform – Ports are gateways, not destinations. optimisation. 1-Stop VBS. This means freight must keep Want to hear how our VBS digital Key features of 1-stop’s vbs moving through the port to the end platform can improve your landside include: destination. When 1-Stop’s digital efciency? Visit us at: platform was introduced into the • Timeslots that allow terminals to Ports of Auckland (POAL), truck www.1-stop.com set maximum numbers for each of turnaround times were reduced within the 24 time zones. Phone: 1300 881 055 (Australia) a week. With fewer spontaneous • Work calendars with multiple day truck arrivals, queues were shortened +61 2 9588 8900 (International) or types that can be set up in advance. from day one. email us at [email protected]

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Shipping Australia Limited Annual Review 2017 99 container management

Chalmers Industries– carrying Australia forward

By CHALMERS management

Chalmers was founded in 1882, as After initially operating in the inner from Chalmers’ hub to the stevedore a family business. with over 135 Melbourne city, Chalmers has facilities, it’s essential to achieve the years’ experience providing transport expanded and currently the head ofce maximum weight with each trip. After logistics up and down australia’s resides in Yarraville, just 7 kilometres three to four months of development, east coast, they recently sought from Melbourne’s ports. In 1995, Chalmers now has the frst certifed permission to run a new quad-quad Chalmers commenced operations in quad-quad combination that’s combination of 117 tonnes gross Brisbane, and have since moved into permitted to carry 117-tonne (GVM) vehicle mass (Gvm), to and from the a purpose built facility in the heart of loads in and out of the port. port of brisbane. Brisbane’s busy port precinct. Chalmers worked with Andrew Rankin One of Chalmers’ major depots is at the Port of Brisbane, Mick O’Phee located in the Port of Brisbane, at from O’Phee Trailers and Geof Huddy Fisherman Islands. At the mouth of at BPW Transpec, to create a 117-tonne the Brisbane River, this artifcial island (GVM) quad-quad combination, which is one of Australia’s fastest growing is now operational. After three to four container ports and Queensland’s months, all of the processes were in largest multi-cargo port. Chalmers place, and Chalmers were granted a operates a hub there, where they have large pack un-pack and container park permit to run the new combination. facilities. Today Chalmers can carry increased The Port of Brisbane are currently pay load of 20 foot and 40 foot general upgrading the Port of Brisbane and refrigerated containers in the port motorway, with construction of precinct legally, safely and efciently. multiple lanes to and from the port, as Managing director, John Carew, well as upgrading and constructing believes this is one of the ways forward bridges. This will beneft companies that will increase client efciency like Chalmers, to transport as many and decrease the number of trucks containers as possible efciently and at the terminals, as well as reduce safely. emission. With only a short distance to travel Acknowledgement - Emily Weeks, BPW

100 Shipping Australia Limited Annual Review 2017 container management

Unlocking the potential of containers

By NEIL LITTLEWOOD, chief executive ofcer, Royal Wolf Holdings Ltd

Do you remember the last time you One of our biggest highlights this year was Tennis Australia for many years. This watched your child play with a box? For partnering with Australian National Maritime year, for the Australian Open 2017, we them, it isn’t just a structured piece of Museum for a major exhibition bringing introduced a state-of-the-art, innovative cardboard to package goods - it’s a house, to life the untold history of shipping Sound Wall. Built on a nine metre high a shop, a spaceship, and often a greater containers. ‘CONTAINER – the box that by 80 metre long sloping surface with a object of fascination than the toys we buy. changed the world’, was constructed curved shape to match the landscape, a Somewhere along the way, we lose this entirely from shipping containers supplied level roof to enable signage to be attached, sense of possibility, and a box becomes no and modifed by Royal Wolf, taking visitors and delivering an outstanding spectator more than just that. on a journey from the containers’ origins experience with a 12 metre LED screen through to its modern-day use as an projecting life-size player vision for the Shipping containers evoke grown-up words innovative solution for everything from like ‘sturdy’, ‘reliable’ and ‘industrial’ – and audience. accommodation, to food trucks and art they are all of those things – but we don’t installations. Earlier this year, Royal Wolf proudly often associate them with excitement, fun, announced an exciting new partnership and togetherness. a box is a feast supporting the Wests Tigers football club, The heart of our business always will There’s no doubt that food brings people through the donation of a unique activation be supplying, at the highest standard, together, and 2017 has been a big year for space for their new community initiatives. shipping containers for storage, portable our portable products, which have been an The customised container was utilised accommodation and use on construction increasingly popular part of our ofering. during several games, altogether reaching sites. But the past year has seen a crowd attendance of over 33,000 fans, For ‘The Garden of Earthly Delights’, St Royal Wolf involved in many interesting throughout the season. First showcased Kilda’s Winter Garden Festival, we turned modifcation projects that have stretched during the Wests Tigers v South Sydney an inner city car park triangle into a the skills and imaginations of our team, Rabbitohs game in May, as a performance dynamic, vibrant festival decked out with challenging us to think more like our platform for the incredible Muggera trendy pop-up bars and mouth-watering childhood selves, and bring the traditional Dancers, the container was also utilised food stalls, using a range of our multi-use shipping container to a new audience and for the launch of the national “Tigerize your event kiosks and refrigerated units. into a new age. classroom” competition, with 35 schools We were also proud to be part of two of entering pictures of their rooms decked out a box is a cultural experience the biggest shows on television this year. Wests Tigers’ style to win a lap of honour In June, we were excited to be part of For this season’s MasterChef Australia, we around the grounds. the prestigious Vivid Sydney Festival for transformed our containers into a portable a box is limitless the frst time, working with Australian functioning kitchen, as contestants battled artists Jonathon Bolitho and Harry Hock it out in the ultimate Pop-Up Restaurant The last year has seen us explore the for Chromesthesia, a shipping container Challenge, on the scenic pier of the creative versatility of shipping containers, transformed into an immersive interactive Melbourne waterfront. Royal Wolf also and the potential for the shipping industry artwork of sound and light. In August, we featured on Australia’s top rating renovation to play a larger part in the wider community worked with Melbourne’s Scienceworks show, The Block, with our engineers by embracing the publics’ growing interest museum for their Laser Maze interactive art creating an operational custom pop-up in the use of containers for unique and installation, where visitors manoeuvred their café for cast and crew, complete with an unconventional purposes - and we’ve way through a maze of laser beams via a outdoor deck. expanded our product ofering to refect narrow tunnel of shipping containers. The this growing demand. We’re looking a box is a sporting spectacle modifed containers were perfect for the forward to what the year ahead brings lasers to bounce of the walls’ surfaces and Sporting events are another integral way for our business and to see what exciting darken the space to make the exhibit more of building stronger communities, which places the humble shipping container will vibrant. is why we are proud to have worked with explore next.

Shipping Australia Limited Annual Review 2017 101 ADVERTORIAL delivering an environmentally responsible operation. Our eforts in this area have been rewarded through achieving two of the highest possible rating categories of “Leading” from the Infrastructure Sustainability Council of Australia (ISCA) for both VICT’s sustainable design and build. our pledge VICT’s frst year certainly wasn’t without its challenges. However, partnered with fellow forward thinkers such as our customers in the ASAL group, we continue to be pioneers together, striving for excellence within the shipping industry. Pushing the boundaries of what is possible through improvement via investment in leading global technologies also plays an important role. This dedication to innovation was publicly acknowledged in 2017 when we won the SMART Infrastructure Project VICT at Webb Dock East with fve of VICT’s automatic Award at the National Infrastructure Awards Neo-Panamax Ship-to-Shore (STS) cranes & OOCL Busan. held in Sydney. Later in the year, we went on to win the award for Supply Chain Innovation & Technology at the 2017 DCN Australian Shipping and Maritime Awards. Victoria International VICT delivers the extra capacity, longevity and efciency that the Port of Melbourne needs to support continued growth with 1 million+ TEUs and the ability to service Container Terminal larger vessels. VICT’s high-tech terminal ensures a safe working environment for its employees and customers with a proven By ANTHONY DESIRA, general manager of operations, and enviable track record in setting high Victoria International Container Terminal, Melbourne, Australia safety standards. We will continue to engage with all our customers, industry stakeholders and neighbours to understand April 2017 signalled a signifcant milestone immediate efciencies within the services and translate their needs into providing a for Victoria International Container Terminal we can ofer. great service. (VICT) when we welcomed our frst vessel, For our shipside customers, we ofer: the OOCL Busan, as part of a regular about the author weekly service calling at Webb Dock East • Berth on arrival Anthony Desira is the General Manager in the Port of Melbourne. Our thanks and • Berthing larger 8000 to 12,500TEU size of Operations at Victoria International respect go out to the shipping lines forming vessels with up to 14.0 metres operating Container Terminal Ltd. (VICT). Anthony the ASAL consortium (COSCO, OOCL & draught began work as a Straddle Operator in 1996 Hapag-Lloyd) for taking a chance on VICT after completing a Business & Computing as a brand new fully automated stevedoring • Larger vessels handled efciently degree at Victoria University. With facility, new to the Melbourne market. across two berths and with dedicated numerous stevedoring roles under his belt, shipside equipment Anthony began working at VICT in 2014 as With increased vessel performance and Operations Manager and is now GM of all a steady decline in port stays, VICT’s key For our landside customers, we ofer: operations at the fully-automated VICT in location allows the unimpeded berthing • Industry leading Truck Turnaround the Port of Melbourne. of newer, larger and more sustainable Times. container vessels. about the organisation (Current times: Gate to Transaction = 20.5 Our unique location on the bay side of the mins & Gate In to Gate Out = 28 mins) VICT’s development delivers a leading port, unhindered by the West Gate Bridge, global standard in modern container • Dedicated, fully autonomous landside means a faster turnaround time for imports terminal design, innovation and operations, handling equipment, which will facilitate the and exports and easier berthing for ships. using best-proven technologies to deliver access to Vehicle Booking System (VBS) For the frst time, 8,000+ TEU vessels can automated operations from gate to slots across all hours of the day, including access the Port of Melbourne for service by quayside. As a subsidiary of International unprecedented visibility to slots and VICT. In our short time of operating, VICT Container Terminal Services Incorporated containers has serviced two 7,500 TEU vessels that (ICTSI), VICT is the product of over 30 were too large to go under the bridge. This • New VBS which is easy to use and years’ experience at the forefront of global demonstrates the unique positioning of provides a fairer, more efcient slot port management. ICTSI is headquartered VICT and the growth we can provide to the availability and distribution. We are in Manila, the Philippines, and operates Port of Melbourne. delighted with how well industry has both a portfolio of 30 container terminals received and adapted to this change. throughout 20 countries. efciencies for customers sustainable success enquiries Future-thinking in its design, VICT introduces a full range of automated VICT’s state of the art design and Victoria International Container Terminal Ltd handling solutions which will eventually engineering delivers a highly sustainable 78 Webb Dock Drive operate 24/7 to achieve the highest levels container terminal to the Port of Melbourne. Port Melbourne VIC 3207 of safety and efciency. We have also We have liaised regularly with various Email: [email protected] ensured we have taken on board valuable stakeholders, including our closest Tel: +61 3 8547 9700 input from future customers to allow neighbours, and we are committed to www.vict.com.au

102 Shipping Australia Limited Annual Review 2017 Shipping Australia Limited Annual Review 2017 103 stevedoring & logistics

12 month review

By PAUL SCURRAH, chief executive ofcer, DP World Australia

2017 was by all accounts a a tall order container logistics park. Botany Intermodal is connected to the challenging – and rewarding DP World Australia’s Sydney terminal Southern Sydney Freight Line, which had the unusual task of unloading – year for many in Australian will drive improved rail efciency ports and shipping. We’ve some special cargo in February. and speed of service for adjacent gathered a few highlights from Mtundu, a 15-month-old girafe was stevedoring operations. This opens the DP World Australia annals unloaded from the Hamburg Sud the opportunity for rail operators to to share. vessel Hammonia Galicia, on his way load empties within the port precinct. to his new home at Mogo Zoo in New The move into landside logistics South Wales. is part of a long-term strategy to Having travelled from Auckland Zoo move beyond the port gate, ofering in a specially built enclosure, Mtundu efciencies to customers and other was lifted of the vessel at DP World stakeholders in the supply chain. Australia’s Sydney terminal, onto a This new intermodal business aligns low loader truck, which was waiting with our plans to develop operations on the wharf. The truck exited the that complement DP World Australia’s port in the early hours before hitting stevedoring business. the highway, safely delivering Mtundu DP World Logistics Australia will to his new home on the south coast ofer fast and efcient container of New South Wales. coordination, movement, cleaning, We hear Mtundu has settled into life repairs, refurbishment and storage at Mogo Zoo and his journey across services to customers who are the ditch is but a distant memory. transiting container freight into and out of the terminals. new logistics arm in botany intermodal new training centre and simulator In June this year DP World Australia Also in June, our training team launched a new operating company: launched our new training centre and DP World Logistics Australia, and a simulator. With a set up reminiscent new business, Botany Intermodal. of an airline simulator, and estimated to cut training time by about one The new DP World Logistics Australia third, the simulator cabins can refect brand and Botany Intermodal atmospheric conditions such as high business, in the Port Botany precinct, winds, rain and fog, as well as varying is a natural extension of a local and time of day and night. global network stretching across DP World’s 78 marine and inland We were very proud to accept the Investment in People Award at the terminals, across six continents. Victorian Transport Association Covering 15.3 hectares, Botany Australia Freight Industry Awards, Intermodal is one of the largest empty and a Highly Commended Award for container parks in Sydney, and is the Environmental or Safety Award at Port Botany’s only fully integrated the Australian Shipping and Maritime

104 Shipping Australia Limited Annual Review 2017 Industry Awards, for the new training also advised that DP World Australia centre and simulator. would extend standard payment terms for transport operators from the australian national maritime current 14 day terms to 28 day terms, museum’s container exhibition to assist with the transition, efective We were thrilled to support the 1 January 2018. This will enable further investment in Australian National Maritime The decision to increase the critical infrastructure across Brisbane, Museum’s exhibition: Container – the Sydney and Melbourne, over the next box that changed the world. Joining surcharge was a difcult one. It 10 years, to ensure we can meet the with other major players in Australia’s refects the tough market we are ever-rising service expectations from shipping and transport industry as operating in, and acknowledges our customers on land and ship’s sponsors, the exhibition explores necessary adjustments we’ve made side, strengthening the full supply the support, the history and impact to tarif structures for access to chain network. of containerisation, and the way the the port. It also underscores the humble container has revolutionised necessity of continued investment new equipment the way we live. in infrastructure, which is critical to trade, and to DP World Australia’s And invest we have. In the coming ‘Container’ opened in October and is long-term fnancial viability. year, DP World Australia will take a free, outdoor, interactive exhibition delivery of nine new ship-to-shore housed entirely within six 20 foot There is a limit to what can be quay cranes, four rubber tyred gantry shipping containers. It explores the absorbed going forward if we are to cranes and 20 straddle carriers fascinating history, contemporary be able to continue a programme of across the east coast of Australia. impact and future outlook for this capital expenditure and innovation All participants in the port supply most ordinary of objects. Head to for a service that is at the heart of the chain will beneft from this investment Darling Harbour to take a look for Australian economy. In any industry, in new and replacement terminal yourself. businesses refne and rebalance their infrastructure, particularly at the road prices as a normal part of responding tarif changes and rail interface. to changing market conditions. One of the most challenging We have been pleased to see the We look forward to sharing these decisions DP World Australia made transport industry pass through the developments and more with you in 2017 was to introduce, and surcharge as we do not think it is in 2018. Thank you to our customers, increase, an Infrastructure Levy in reasonable for any one company to partners and people for your all four terminals. Customers were absorb these costs. support.

Shipping Australia Limited Annual Review 2017 105 stevedoring & logistics

in-house developed terminal operating Further development system. Today Hutchison Ports in Australia handles an annual container throughput of Both the Brisbane and Port Botany facilities over 500,000 TEUs with capacity to deliver have room to expand and grow as the a lot more. market demands. There’s enough space to ofer the Australian container trade another the benefts of technology one million TEUs of capacity. Investment ASC technology is used widely in many in new shuttle carriers and other gear were other Hutchison Ports around the world. recently made to strengthen the existing One of the key features of this design is feet of container handling equipment and the high stacking density it provides to a to better serve customers on the waterside terminal yard, which makes it especially and landside. Additional capacity and suitable to the Australian environment where space in some ports is rather limited. equipment will be added to service the At the heart of this mode of operation is industry as needed. the rail mounted automated cranes that where to from here move import and export containers to optimum storage locations around the yard The frst four years have been an extremely so that stevedoring of vessels and handling busy period for Hutchison Ports in of trucks is carried out automatically Australia. It has created and recruited with greater efciency than conventional over 200 new positions into the industry. terminals. Further refnements and It has also provided training to every new localisation of operational processes have employee, many of whom were given Hutchison taken place over the past few years by the Hutchison Ports team in Australia and this specialist training to be able to perform in has enabled the business to ofer further key stevedoring roles. It has introduced Ports benefts to its customers as well as improve to the waterfront new technology which overall efciency to the logistics chain. has proven to be highly suitable for the Australian environment. The business the new operating environment Australia – has also highlighted to industry its ability Never before has the industry seen such to handle some of the biggest shipping high levels of competition and customer services on the Australian trade. It currently the frst four choice. The basic business of stevedoring stevedores vessels with exchanges in is about providing the required berth excess of 3000 moves per port call. window and turning vessels around as years quickly as possible. Customers today The success of the business so far has expect a lot more from the stevedore: they been largely built on the tremendous want a guaranteed level of quay crane support of customers and stakeholders By JOHN WILLY, acting chief productivity based on a guaranteed number and in particular their willingness to of containers moved per hour as well executive ofcer, work with Hutchison Ports in Australia. Hutchison Ports Australia as fexibility and benefts to help reduce operational costs. Hutchison Ports will Hutchison Ports will continue to look at continue to work closely with customers other innovations and relevant technologies and stakeholders to ofer assistance with the aim of fulflling the future needs humble beginnings to ensure the delivery of ‘good value’ of customers as well as meeting the stevedoring. expectations of the shareholders. 2017 marked Hutchison Ports fourth year in container terminal operations in Australia. It was back in 2013 when Hutchison Ports frst introduced a new concept in automation to the waterfront with the roll-out of Automated Stacking Cranes (ASC) operations at both Brisbane and Port Botany (Sydney) terminals. Both facilities have evolved from greenfeld sites and were developed from reclaimed sand dredged from the depths of the harbour. Hutchison’s entry into the Australian maritime industry heralded a new era in competition and the Port Botany facility is the frst new container terminal to commence business since the opening of the port, over thirty years ago. The business has been extremely active in promoting the benefts of its operations which is controlled by nGen, the company’s

106 Shipping Australia Limited Annual Review 2017 stevedoring & logistics

The 100 year old startup

By ANTHONY JONES, chief executive ofcer, LINX Cargo Care Group

LinX Cargo Care Group brings together progressing through the operational resources. We strive to be innovative, we the capabilities and expertise of four ranks to take-up management and are agile and we work together to give market-leading operations, built on senior leadership roles. Through the our customers what they need, where over 100 years of ports and logistics Asciano group of companies, I had the they need it, when they need it. experience. opportunity to move to Pacifc National innovating for growth Together, the group’s four businesses: and lead a division of their rail business LINX, Autocare, C3 and GeelongPort, for many years. I then moved back to When faced with the challenges of employ more than 3,800 people in 60 the Patrick business to lead Patrick today’s tough markets, the LINX Group sites across Australia and New Zealand. Bulk Port Services and Terminals across continues to focus on new ways to the eastern and southern seaboard create and deliver value to its customers. The LINX brand emerged following the of Australia. Today, I’m very proud to Across our organisation, our leaders separation from Patrick and the Asciano lead the newly formed LINX Cargo Care use business improvement tools to group of companies in August 2016. Group, under Brookfeld’s ownership. Now owned by global alternative asset gain a better understanding of our manager Brookfeld, and its investment The LINX Group provides services customers’ needs. Using these insights, partners (GIC, bcIMC, QIA), the LINX and integrated logistics solutions to we improve our business goals and Group of businesses has the regional customers from a diverse range of provide customers with more value. Our capabilities and global connections to industries across the region, from methodologies enable us to transform develop holistic, well-resourced solutions agriculture, aluminium, automotive, and enhance our customer partnerships with long-term growth opportunities for forestry, food and beverage, mining, by combining the use of technology and its customers. marine, oil and gas, major retail and collective ideas to design innovative, Our Group has so much to be proud of. What we have achieved over the past year, since transitioning from Asciano to Brookfeld’s ownership, is nothing short of astounding! The transition from Asciano has not been without its challenges. It’s taken a tremendous amount of work to establish our new organisation and I have been overwhelmed by the extraordinary people in our teams - the ‘best and brightest’ in the industry - who’ve made what seemed impossible, possible. I’m extremely encouraged and excited about the next 12 months on our prosperous journey. I’ve enjoyed over 18 years in the transport and logistics industry. Initially, joining Patrick as a stevedore and quickly Curtain trailer

Shipping Australia Limited Annual Review 2017 107 enhance the logistics workforce, as long as people are brought along on the journey through good leadership. Another critical factor is how we diversify skillsets across the workforce, for people to work within the increasing complexity of the industry. With access to real-time data, customers’ needs can change daily through all parts of the supply chain. Increased visibility of their cargo via technology increases their expectations of real-time responses. This transparency means employees need to anticipate responses and provide tailored solutions to meet customers changing needs – anytime, anywhere. To remain agile and nimble in an ever- changing market, workforce capabilities and attitudes need to change, and employees need to keep up with this new way of working to ensure we are GeelongPort - Victoria’s premier regional gateway and second largest port responsive to our customers’ needs. The pace of technology change requires us to tailored solutions for our customers. core responsibility is at the centre of adapt quickly and efciently to meet our everything we do, ensuring everyone customers’ expectations, or even better, Innovation is a key part of the LINX goes home safely, every day. exceed them. Group’s business strategy. It underpins the concepts of delivering for our building the workforce of the future Diversity for us is not just about ensuring stakeholders and customers, while more women are given the opportunity to With a clear vision for the future, I’m continually improving processes and join our team – that’s a key component – passionate about taking my people on developing our people. Combine this it’s about pro-actively creating a diverse the journey. The adage ‘to win in the with our long history and signifcant ports and inclusive workplace with a broader marketplace you must frst win in the and logistics experience, and the LINX mix of capabilities and mindsets. We workplace’ rings truer than ever for me. Group has a winning formula for success see diversity and inclusion as leadership responsibilities, not HR responsibilities, and a competitive advantage. The biggest transformation in the which is why our leaders play a key workplace today is, without a doubt, We play an integral role throughout the role in building capability to work more the increasing adaptation of technology. supply chain and continually work to efectively in diverse teams, and adapt And we are at the centre of it. This understand our customers’ business, quickly to the future needs of the transformation has been painful for so we can grow together. Through our logistics industry. many. However rather than technology disciplined continuous improvement being a threat, the addition of automation methodology, we provide cost-efective, At LINX Cargo Care Group, diversity and across our industry will likely create innovative supply chain solutions which inclusion are intrinsically linked to our new jobs and opportunities, as new enable our customers to grow locally and core values and the way we work. One technologies make processes faster, globally, and become more competitive of our key organisational priorities is to safer and more efcient – and as a result, in their markets. engage and strengthen leadership to the logistics market will grow, along with champion change and foster a diverse, The challenge of ensuring a complex its workforce. respectful and inclusive culture. end-to-end supply chain involving the To be successful throughout this We believe our future business success handling of products via a range of upheaval, industry leaders need to bring is heavily reliant on how well we transport modes, including road, rail and their people along with them. They understand our customers - how well sea freight, is what excites us. need to inspire, to be the front-runners we adapt to new technologies - and LINX Cargo Care Group builds our that set precedents, and at the same how well we recruit, engage, develop customer partnerships on three time, unleash imagination amongst their and manage people with diferent things: Innovative supply chain design, employees. backgrounds and thinking styles. collaborative trust, and a genuine desire By leveraging the experience and Employees need to upskill and to challenge the way we do things and ideas of our people and embracing demonstrate fexibility to have the mental try new ideas together. diferent viewpoints, we gain a better stamina to embrace the endless change understanding of our diverse customer Importantly, everyone at LINX upholds that new waves of technologies will base, and ultimately, this enables greater Safety as a core value. The entire team bring, and remove their fear of the new. innovation. is driven by the determination to be The logistics industry of the future will the safest organisation possible, for The team at LINX are frmly focused on employ highly skilled professionals in the beneft of our customers and the the future and continue to analyse and positions that do not exist today. An communities in which we operate. Our question how we move our organisation employee’s willingness and ability duty of care is of utmost importance, from today to tomorrow. This 100 year to acclimatise and assimilate new particularly given the nature of the old startup is a great business, full of technology is critical. interaction our day-to-day businesses great people, taking our customers on an have with the general public. This The bottom line is that automation can exciting and prosperous journey.

108 Shipping Australia Limited Annual Review 2017

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