HMAS Albany on border protection patrol

e c e m b e r D 2009 Contents The official Journal of Shipping Australia Ltd Level 6, 131 York Street, Sydney NSW 2000 PO Box Q388 Sydney NSW 1230 2 Announcements from the bridge Ph: (02) 9266 9911 • Fax: (02) 9268 0230 Gillard reforms no help www.shippingaustralia.com.au 5 Viewpoint Time to uncork the bottle Published for Shipping Australia ltd 6 Profile Ganesh Raj of DP World 8 Grain Showcase Publications P/L Harvest looking good Suite 5, 99 Jones, Street Ultimo 2010 NSW Australia Ph: (02) 9211 7422 Fax: (02) 9211 9061 10 MARITIME SECURITY FEATURE www.showcasepublications.com.au 10 Border Security Command Director: Roger Conway 12 Office of Transport Security 14 Immigration and Citizenship editorial 16 The MSIC Executive editor - Llew Russell Feature writer - Archie Bayvel 18 Environment Proactive in face of challenge Advertising Co-ordinator 22 Logistics For Advertising in the next issue 22 Stepping up to the challenge Call: Steve Moxey Ph: (02) 9211 7422 24 Focus on infrastructure Email: [email protected] 27 TRADEGATE NEWS Production Manager and Design 28 Objectives Paul Ortiz-Gomez 28 Why PortBIS? Ph: (02) 9211 7422 29 International developments Email: [email protected] 30 Standards 31 Container announcement message Administration Sarah Abrahams Ph: (02) 9211 7422 32 The economy with Tim Harcourt Email: [email protected] 32 From Down Under to Down Wonder We kindly ask all readers to notify the advertisers that you saw their 33 Seoul mates advertisement in Shipping Australia, as it is only by their willing participation that this publication is available to you. We 34 Ports recommend that you use the advertisers wherever possible. Daru – New port in Torres Strait Disclaimer. Readers are advised that Shipping Australia Limited and the Publisher cannot be held responsible for the accuracy of 38 Legal statements made in advertising and editorial, nor the quality of the goods or services advertised. Opinions expressed throughout the The Paragon case publication are the contributors own and do not necessarily reflect the views or policy of Shipping Australia Limited or the Publisher. 40 Maritime Safety While every reasonable effort has been taken to ensure the accuracy The Scarlett Lucy rescue of the information contained in this publication, the publisher takes no responsibility for those relying on the information The Publisher 42 The Scene and Shipping Australia Limited disclaims all responsibility for any loss or damage suffered by readers or third parties in connection SAL has a ball with the information contained in this publication. 44 Signal Warranty and Indemnity: ADVERTISERS and/or advertising agencies upon and by lodging material with the Publisher 48 Careers course glimpse Showcase Publications for publication or authorising or approving of the publication of any material indemnify Shipping Australia Limited the Publisher, its servants and agents, against all liability claims or proceedings whatsoever arising from the publication Front Cover: and without limiting the generality of the foregoing to indemnify each of them in relation to defamation, slander of title, breach of 1. A Board Protection team in action copyright, infringement of trademarks or names of publication 2. Ganesh Raj of DP World titles, unfair competition or trade practices, royalties or violation of rights or privacy regulations and that its publication will not give 1 3. Allan du Toit, of Border rise to any rights against or liabilities in the Publisher, its servants Protection Command 2 3 or agents and in particular, that nothing therein is capable of being 4. Tim Harcourt, Austrade economist misleading or deception or otherwise in breach of Part V of the 4 5 Trade Practices Act 1974. 5. Dean Summers of The International Transport Workers Federation Announcements from the bridge by Llew Russell

Gillard reforms will be no help in weathering the storm

s the year draws to a close reconsider the application of the Fair we reflect on the difficult Work Act in the light of any changes economic challenges that have Expand to the permit regime. come our way. Both in Australia and A We filed two submissions with the internationally there are slow signs of our Australian Industrial Relations improvement but globally shipping Commission in relation to this matter lines are facing serious challenges, horizons and the SAL chairman and I attended particularly bearing in mind the new a hearing of the Australian Industrial capacity which is coming on the berth You will note in Relations Commission and made oral in many areas of the shipping industry. this edition of the submissions on 4 November and the This year’s grain harvest is looking result of those consultations will be good with most states’ crops up on magazine that we reported in the March edition of this last year. Our story on this (see page have a new section magazine. 8) follows last season’s problems with The chairman and I also travelled access arrangements at ports for grain devoted entirely to to Capetown in South Africa in shipments following the deregulation early October to attend the 40th of the industry. The Australian news from Tradegate annual meeting of the Federation of Competition and Consumer which is an industry National Associations of Ship Brokers Commission subsequently rejected and Agents. Discussions reflected early this year the port facility access association dedicated the growing importance of this arrangements proposed by CHB, to encouraging international association which now ABB and Graincorp on the basis that has members in 45 different countries exporters needed greater clarity and information with the recent addition of China and transparency. Following undertakings the Philippines as members. given by those companies, the ACCC technology solutions subsequently agreed to the port facility in the transport and We were able to contribute to the access arrangements. discussions at the plenary meeting of logistics industries. the European members, the chartering Viewpoint in our last issue referred and documentary committee, the to the regulations made by the We will be including liner and port agency committee and Deputy Prime Minister and Minister at the council meeting itself at the for Employment and Workplace a Tradegate section end of the week-long deliberations. Relations under the Fair Work Act, in future editions of Interest was shown particularly in 2009 to extend its application to the Rudd government’s proposal to vessels licensed or vessels issued single the magazine as well. significantly tighten cabotage rules or continuous voyage permits under as mentioned above, the oil spill and the Navigation Act, 1912 to carry between those employers who are clean up costs of the Pacific Adventurer coastal cargo. The new regulations will regularly and systematically engaged and the proposal in conjunction with commence from 1 January 2010. in coastal shipping trades and those Tradegate Australia by SAL to actively Subsequently Shipping Australia whose operation under a permit is pursue community-based port data wrote to the Minister and she replied truly incidental to international trade systems in Australia. acknowledging that the current permit operations. The Minister previously Federation members support the early system does not easily distinguish flagged the government’s intention to adoption of the Rotterdam Rules as

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090514 HE Cargo Hold ad 297x210.indd 1 14/05/09 12:32:38 Announcements from the bridge

the new international cargo liability waters in March this year. It is, and principles in the International regime. Surveys which have been therefore, relevant to refer to the Convention for the Prevention of undertaken on members’ activities call by the International Chamber Pollution from Ships and the United and a proposed new survey on port of Shipping for all governments Nations Convention on the Laws procedures in the various members’ to bring all national and regional of the Sea. In addition, the chamber countries were also discussed. laws which might result in criminal believes that it is appropriate that Shipping Australia bid for the sanctions for seafarers into line with the IMO/ILO guidelines on the fair opportunity to host this international the internationally agreed standards treatment of seafarers in the event of a meeting in October 2011 and it maritime incident should be reviewed. is pleasing to report that we were Governments were reminded of successful in that bid and detailed Readers will be the importance of maintaining and arrangements are already underway to aware that we host that event in Sydney and make complying with the fair treatment sure that it will be an annual meeting included a readers’ guidelines; the importance of long remembered by delegates. expediting all cases where a foreign survey in the seafarer is detained was stressed as was There has been quite a deal of media September edition the need to seriously consider granting comment regarding the suspected bail. Fortunately in the case of Captain level of criminality on the waterfront of the magazine and Santos these criteria were applied but at a time when the Maritime Security we wait with great interest to see how Identification Card is being reviewed the survey is also on the court case unfolds. as well as other security measures our website. Readers remaining under the spotlight. Maritime security is the major theme Shipping Australia believes that the are encouraged for this edition of our magazine objective of that review should be to complete the which is very topical but we also clear and be aimed at anti-terrorist take the opportunity to point out measures compared to the quite survey and sent that whilst the focus is on climate different objective of assessing the it to Shipping change and it is expected that both the level of criminality on the waterfront shipping and aviation industries will or in fact in other service industries. Australia. There have be brought under any arrangement Shipping Australia has made a agreed at Copenhagen in December, submission to a Parliamentary Joint been encouraging the shipping industry is not sitting Committee on the Australian Crime Commission which is examining comments in the still and has introduced many the level of security and potential surveys received to environmental features to reduce their environmental footprint. criminality at airports and ports. date although the The master of the Pacific Adventurer There are a wide range of stories Captain Santos will be required to response rate has not for you to read over the Christmas appear before a court in Queensland been high. break and I would like to take this to answer various charges relating opportunity to wish you all a most to the oil spill in South Queensland enjoyable and safe Christmas.

mapping and hydrographic surveys

4 December 2009 Viewpoint We must uncork bottlenecks that stifle business before next boom gets under way

usiness is demanding Federal and circulated early in 2010 and further state governments push ahead stakeholder comments will be with a new round of transport, incorporated into a revised draft report water,B electricity and communications which will also be circulated in the first reforms and has warned that bottlenecks quarter. which stifled exports during the last The strategy will deal only with nationally boom will reappear as the economy significant ports and ensure consistency recovers. and coherence with plans made by all Roads, rail, ports and energy supply jurisdictions. It is planned to identify are seen as absolutely key priorities for future criticalities, be internally consistent reform and Shipping Australia could not and coherent and rank issues in order of agree more. And the sooner the better their importance and urgency. This is a because Australia has a substantial lead in massive task not easily accomplished in coping with its infrastructure while much the time but what is important is when of the rest of the world is still struggling the Council of Australian Governments to cope with the recession. We must considers the recommendations and, not fritter away our advantage. What is if approved, that it acts quickly to achieved, not the amount of effort made, implement them to avoid those export is how the people responsible will be bottlenecks of such concern to business. judged. will be facilitated as will the electronic Many stakeholders including Shipping flow of information to and from empty Little public mention has been made Australia believe it is essential that soft as container parks. Accuracy of information of the fact that at the direction of the well as hard infrastructure is considered will be improved by reduced rekeying Council of Australian Governments, a in this context. How can we use errors and confidential information will national ports strategy is being developed information technology to increase ports’ be fully protected. jointly by Infrastructure Australia and logistics chain transparency as well as to the National Transport Commission for improve the efficiency of the process? Both the commission and Infrastructure consideration by that council next year. Australia now have the opportunity to It is vitally important that early action is While that seems a long time there is a recommend solutions that will result taken to at least trial community-based lot of work to be done in developing a in a major leap forward in operational port data systems to see if we can apply full strategy and realistic plan that meets efficiency. the requirements of Federal, state, and them at least to container shipping in the territory governments as well as those of major ports before branching out into SAL’s break bulk shipping study industry. other types of shipping. identified potential improvements in these facilities as well as a clear decline in These systems were the subject of Under the leadership of Michael dedicated coastal shipping facilities that workshops organised jointly by Deegan, Infrastructure Australia and needs to be reversed. Nick Dimopoulos, head of the National Shipping Australia and Tradegate in late Transport Commission, consultants September and early October and surveys Recommendations to ease congestion, to GHD have been appointed to report on completed by participants show there is increase use of freight on rail, and policies current ports planning practices relating strong demand here for such systems. to improve our logistics systems in and to logistics chains including government They already exist in over 40 ports around ports are just some of many issues port planning, master planning and throughout the world. that need to be tackled. major project approval processes in the Such systems will improve the In 2010, we will be looking to the context of connecting land transport transparency throughout the logistics Council of Australian Governments to infrastructure. The report will include chains and allow electronic tracking deliver on this important initiative and to forecasts for future national port tasks. of containers. Nationally consistent reassure business that bottlenecks will be A preliminary draft report will be electronic reporting of dangerous goods removed.

December 2009 5 I Profile GANESH RAJ DP World by Archie Bayvel

When a mouse can carry the god, two slides are more than plenty for the man

over India following his father’s postings. Ganesh’s job expanded as the port – also It’s a background highly respected for its known as Nhava Sheva - materialised discipline and order in India, a country and he was put in charge of planning its that visiting westerners often mistake as container terminal which he went on to chaotic. run along with the port’s bulk facility. By training Ganesh is a mechanical “It was my introduction to management,” engineer with his degree from Bangalore he says, “and it moved me from being a University and a second degree in shipping technocrat to being a generalist. I’d learnt and transport from the Rotterdam a lot about the ports business and decided anesh is the Hindu Transport College, in Holland. to move back into the private sector where few ports were specialised or had been god of success, wisdom His first chance to overcome obstacles in built as container terminals. and the overcoming the ports business came early when, after a brief post-grad inland stint with an engine of obstacles. Although ranked “So I joined a Belgian company, CMB, G manufacturer, he won a job with India’s that was subsequently taken over by among the supreme deities Ministry of Shipping which was building Safmarine which in turn was taken over whose car entitlement would be the Jawarlal Nehru Port, at Mumbai. by Maersk and I became its terminal manager in Mumbai. Most lines in India At his interview he saw pictures of the a juggernaut at least, all images only had agents in these days but Maersk port as one of the most modern in the show Ganesh riding modestly had opened its own grass roots office there world and he realised it was his chance to serving Europe, the US, and Far East. “ on the back of a mouse. be part of creating history. Next step was So the parents of Ganesh Raj, a senior to be shown the new port so he reported From there he went to open Maersk’s vice-president of DP World and its new to a wharf early one morning where he operations in Chennai. Then back to managing director in Australia, appear was collected by an impressive launch Mumbai and on to Hyderabad to establish to have chosen wisely when they named commanded by Anna Malhotra, the Maersk in that big inland industrial and him because he has built his career out of port’s chairwoman and one of the most manufacturing centre. Back once again successfully overcoming challenges in a prominent women in all India. in the Mumbai corporate office he was given the challenge of setting up Maersk’s constantly growing sphere of activity. “I’ll show you the port,” she said and off operations across the Indo-Pakistan sub- they roared across the bay. By birth he is a son of the regiment, continent. his father having been a member of the “Then we arrived and there was nothing,” “I spent 10 years with Maersk,” he recalls, Indian Army’s Corps of Engineers, so his Ganesh recalls. “It was 1988 and the “all in ground-breaking jobs. I was part of childhood and schooldays were spent all wonderful pictures had been only artists’ our audit team across Asia, China, Japan, impressions and work was only at the and Korea so met a lot of people and got landfill stage. to understand a lot about operations. “Next I was taken to an admin building, “But in the end I wanted to get back into shown a desk and told: ‘That’s yours’. the ports business and when P&O Ports Someone planked a pile of contracts on bought the terminal concession at Chennai it, the famous lady climbed back into her I took the job as its CEO. It was the first speedboat and roared off back to the city Indian government port to be privatised while I was left to get on with it. and I saw making a success of it as my “I did that but failed to realise that opportunity to contribute to the land what had taken 30 minutes to cover by where I was born. speedboat was a three-hour journey home “It was a unique task because the port had by bus. And I became so engrossed in my run down over several years and even when contracts that I’d missed the bus anyway. It I began work the takeover details were turned out to be a long day.” unsettled with the outcome of a court case But with that small problem surmounted still hanging over our budget plans. Profile

Ganesh and his hero: A self-confessed cricket tragic, a life-size action picture of Don Bradman is on display in the DP World foyer.

“I got to work bringing our staff up to speed containers/hour and business had grown by today. I spent three years there that time around and was ready to make my first policy speech 20 per cent a year. Today Chennai handles before coming to Australia where we have five to them as CEO, when I learnt that our about 1.2 million teu running at about 28 terminals – one at each of the main ports. budget had just been slashed. It covered only containers/hour. “The special thing about DP World is its half our wage bill! “By that time DP World was starting up culture which says the business must be “It was a crisis because if I laid off half my its international divisions and turning to in synch with its people. In the West trust newly-trained staff I’d never get them back. big developments throughout the region between people seems to be a given; in Arab So I put it to them that everyone would be so I packed up my wife and two kids from culture it has to be earned. So you need to get kept on if they agreed to all-round cut-backs Chennai and we all moved to Dubai. the people equation right and everything else with everyone taking a pay reduction within becomes a by-product of that and clicks into “In Dubai I was involved in bidding for our available budget. place. I see that as being quite different to terminal concessions including a delicate being driven by productivity numbers alone. “I could afford it most so I took only a quarter negotiation in Aden. I’d never lost a project of my salary and put the rest into the kitty. in my career and I wasn’t going to begin with “The atmosphere in Australia is perfect Many others did the same. It took 6–8 weeks Aden. So we got Aden, then Abu Dhabi and for that culture. We are focussed on but we turned the business around and the Fujairah. Growth was rapid and we went shareholders’ value but we know our people court judgment came in our favour. So that from having five ports to 14 to 19 to 25 until are fundamental to creating that. One needs was one nightmare fixed. today when we have 45.” to give back to one’s community. “The other nightmare was the four or five His next challenge came as DP World’s “These strong values are strongly supported kilometres of trucks queued up at our gates senior vice-president and managing director by Sultan Ahmed bin Sulayem, our chairman and the 15 vessels waiting to load. It was of the sub-continent. Based in Mumbai and a man with a very strong instinct for our sometime in November 2004 and I worked again Ganesh’s responsibility included India, business. The first time I made a presentation many 18-20-hour shifts. Pakistan, Sri Lanka, and Bangladesh while in to him I was alarmed to see that after about Dubai he was succeeded by Grant Gilfillan two of my many slides he appeared to have “We celebrated Christmas eve with our first who is now CEO of the Port of Sydney. lost interest. When I’d finished he asked only semblance of control of the situation and by one question: ‘What’s the risk of not doing the new year we had everything working, the India welcomed investment from Dubai in what you propose?’ I told him, he nodded and system tuned and it was just like a normal contrast to the US attitude where politicians’ got up to leave. port... the yard was in order, the quayside was security concerns led DP World to sell its in order, the gate was in order and we had assets. “I was alarmed because I’d spent a lot of time raised the handling rate from nine containers preparing that project so I asked him: What “The sub-continent had a huge footprint an hour to about 15. am I to do then? – ‘Go ahead,’ he said. – With with traffic of 5 million teu a year,” he everything? – ‘Yes with everything.’ “We handled 3500 teu in 2004 and that rose recalls. “Thanks to new developments and to 500,000 and when I left after three years consolidations, Mumbai’s Nhava Sheva must “I’ve never used more than two slides in a we were doing 750,000 teu and hitting 22–25 now be the most efficient port in the world presentation since!”

December 2009 7 Harvest looking good as exporters win their battle with port handlers

ith this season’s wheat harvest well under way and heading for a total around 23 million tonnes, 7 per cent up on last season but below some historical levels, everything in that particular garden is looking good. Only minor downside is that export sales might be lower because almost Wevery other grain-growing country in the world is also enjoying a good season so there’s a lot of wheat around and demand and prices are correspondingly weaker. But even more significant than the harvest is the victory the grain exporters have had at the ACCC in winning a fairer deal with the three big grain handling companies who had enjoyed monopoly privileges at the ports. In its final hearing the commission told the handlers – ABB, GrainCorp, and CBH - in no uncertain terms that they had to be even-handed in their dealings with the 19 smaller exporters or forget about getting an export licence this year. A week out from the commission’s 1 October deadline and the handlers were told to revisit their submissions or else. They backed down within 24 hours. Following hard on the heels of that development comes the latest news from Perth that CBH - operator of the grain terminals at Albany, Esperance, Kwinana, and Geraldton – has introduced a monthly high-tech online auction system to manage grain port capacity allocation and demand spikes. Reviewing the current harvest, Frank Drum, agribusiness economist at National Australia Bank, says this season’s growth over last year is due to good weather with the best harvests being in South Australia and Victoria with WA running third and production from Queensland and NSW slightly lower. He reports: “The global wheat market has been weaker over the past month. Wheat futures, along with physical prices, have been easing in the face of abundant global supplies and greater certainty that grains carry out will increase as US corn yields improve. Australian values have fallen despite severe dryness through some major regions of the east coast. The strengthening AUD has combined with the improved global production to outweigh domestic concerns. “Of particular concern is the improving Black Sea and European crop outlook. This has led to pressure on prices from these regions, resulting in substantial discounts from these origins to Australian wheat. If this

8 March 2009 Grain by ARCHIE BAYVEL

Loading grain at GrainCorp’s Port Kembla facility

continues into the Australian harvest which was recently taken over by having the potential to restrict access then current prices suggest we will Canada’s Viterra, operates mostly in to ports by exhausting the terminal’s struggle to maintain market share into South Australia; GrainCorp owns all capacity in favour of other grains. Asia and certainly the Middle East, export terminals on the east coast; especially with Iran reducing its buying and Cooperative Bulk Handling has a The ACCC wanted GrainCorp to substantially. monopoly of Western Australia. publish on its website information on stocks held at port in terms of wheat “However whilst the USD continues to A privately written summary of the weaken, commodity and equity prices stand-off prepared by George Pallet, and non-wheat grains to provide are strengthening. Funds have been of OzEpulse – one of the export transparency on what was moving big sellers of wheat; however should companies who campaigned for reform through the port so they could not wheat futures rally, that rally could – pointed out that the Wheat Export claim that they were busy exporting be exaggerated as investment funds Marketing Act 2008 was the basis of some other grain and leave another become buyers.” the ACCC’s rejection. bulk exporter waiting for access. In marketing terms the 2009-10 The Act sought to prevent vertically The upshot is that everyone’s logistics harvest is particularly significant integrated bulk handlers from now seem to be in place and Australia because it is only the second season of favouring their own interests and can expect its biggest export to run operating since the original Australian sought to provide fair and transparent smoothly this year. Wheat Board single-desk system access to all bulk wheat handlers. collapsed and was replaced by 22 The ACCC wanted standard terms of Already the ACCC’s ruling has been independent registered exporters. access to the ports for all bulk wheat followed by a world first in Western Last season, the first under de- handlers to achieve a fairer balance of Australia where Mr Jeco d’Alquen’s regulation, was generally judged interests between the terminal owners Tradeslot auction house is auctioning a success but many of the smaller and other access seekers. This was to exporter’s bookings at CBH terminals. exporters were vociferous in their reduce the discretion of the access Conducted for bookings in four- claims that the three big grain handlers providers which was disproportionately month tranches exporters – including – who in addition to owning all the in their favour. the export arm of the terminals’ handling facilities were also licensed Basically the regulator wanted to owner – bid for their preferred loading exporters in their own right – were prevent unequal access to the ports timeslots based on dollars per tonne. favouring themselves at the ports and through the big three favouring those on the delivery trains. who choose to use their supply chain Companies accredited to export bulk With butter unable to melt in their the whole way. wheat around Australia include a mix mouths the big three vigorously denied of local units, major global commodity Referring to the GrainCorp all that. Despite having known they traders and Australian companies submission the Ballett Report said the had to justify their stance before the including Bunge, Cargill, Concordia, final point raised by the ACCC was regulator since March 2008 their that GrainCorp’s undertaking did not Elders Toepfer, Emerald Group, Louis submissions were still being rejected by include an obligation to publish stocks Dreyfus, J.K. International, Marubeni, late September 2009. of grain at port. The regulator felt that OzEpulse, Noble Resources and Of the three companies ABB Grain, was necessary to prevent port operators Sumitomo.

December 2009 9 Maritime security by ARCHIE BAYVEL Everything pales compared to the threat of having our kids blown to kingdom-come

They are the main issues pre-occupying our reporters call a marquee player. ust what is maritime maritime security today at a time when the He’s the reason people will keep watching the security all about in western world faces an era of unprecedented game, reading this article even although he is Australia? And who’s random and explosive violence. Everything far from being the most important player in pales compared to the threat of having our what Kipling called The Great Game: the task looking after it anyway? kids blown to kingdom-come. of keeping our nation safe from enemies and JIs it about preventing a gas tanker being lunatics and the plain wicked at heart. detonated and blowing away Sydney and its With that in mind one turns to Rear Admiral Close-up he is a charismatic and surprisingly citizens? Anecdote is that such a blast would Allan du Toit, AM. Commander of Border youthful, even radiant, figure. Contrary to be of Hiroshima proportions. Protection Command. expectation he’s a cheerily friendly bloke, big Or is maritime security about phones ringing too – impressively so with his hat on. He’s off the hook in a shipping office somewhere dressed in dazzling whites, his decorations as a furious client finds his new and much- About the man: like a garden in spring, his epaulettes twin needed grand piano has been nicked in a platters of gold while sundry torso tags daring box snatch from Botany? announce his name, submariner past, and god knows what else. He is The Man! Or is our security – and this is today’s popular likelihood – about people like, let’s When we get down to work he talks about imagine, Luigi “Frank” Machiavelli who serious things with a relaxed face and a has just completed 15 years in Pentridge for slight South African (Durban) accent. involuntary rape and manslaughter (the gun He’s thoughtfully eager to explore issues went off in his hand). A model prisoner, Luigi and knowledgably fields red herrings about is happy to be released because his mates are admirals Horatio Nelson and John Byng, cutting him in on a thriving DVD diversion distinguished predecessors who one way or racket; doubly happy that his value to the another came to unfortunate ends. When a family business will be enhanced by his being question arises about how a colleague’s name is granted a Maritime Security Identification Allan du Toit, AM, BMSc, MDF spelled there is a critical public-service moment Card on grounds of natural justice ... He has His guiding philosophy? - “I think of when he seems about to ask his attending PR after all done his time and been rehabilitated my command as a band of brothers lady to check it and one just knows that she will and security control has nothing to do with who clearly understand my intent tell someone else to do it and they will ... But crime. the moment passes as he takes three steps to his without needing to be micro-managed.” desk and finds out for himself. Then there are those we used to call The Boat Looking back on his career? – His minders had wanted to know about People but are now preposterously known “The Navy has been everything as Irregular Maritime Arrivals. A lot of very questions in advance: “What do you want to successful Australians today are proud to have I wanted it to be and more.” ask him?” The answer was: “Nothing. Just let been Boat People, less so as “Irregulars”. Greatest achievement to date? – him talk about his job.” “Good,” they said and “When I was serving in The Gulf here we are today ... So, Admiral, tell us what It’s notable that of all these risks the one you do all day. that got the most space is Luigi “Frank” I had two tasks. The first was to Machiavelli. And so it is in real life with the protect Iraq’s offshore space located “I’ve been working hard for the 18 months MSIC having generated almost as much of 90 per cent of oil exports from I’ve been in this job,” he says, “to build a media coverage as the boat people and far terrorist attack. The second was to relationship with the maritime industry and more than anything that may have been done grow the Iraqi navy’s capacity to one reason for that is because it has the eyes about terrorism. regain that function. Kuwaiti and Iraqi and ears to report on untoward occurrences Maritime security today boils down to what relations were at an all-time low but that we should look into.” our government, our lines, and associated we succeeded in getting them back on Asked how successful he’s been in terms of bodies are doing about: a good footing. A legacy of that work actual achievement rather than mere effort Catastrophic red-alert terror was in meeting my Iraqi colleagues at expended, the admiral points to the oil and a recent conference in the USA and gas industry and its economic importance Unwelcome seaborne migrants finding the relationship was still going to the nation: “It’s been the focus of a lot of our attention,” he says, “because of its Integrity of cargo in the lines’ care from strength to strength.” vulnerability to terrorism with so many of its Current heated controversy over just how rigs and installations isolated and exposed. bad a bad-ass one needs to be to not get For a story-teller writing about maritime Many of them are closer to Indonesia than an MSIC. security, Allan du Toit is what the soccer they are to Australia.

10 December 2009 December 2009 11 Maritime security

“As a result of our liaison with that branch of industry we now have the development teams Allan du Toit in The Gulf consulting us at the design stage of their new rigs and asking what they can incorporate to enhance their security. “Many small support craft associated with them have the chance to observe or become involved in border incidents. “One report on the Puffin gas field, for example, had our lines running hot and we had a patrol boat on the scene within 40 minutes. In another case a boatload of would- be migrants caught fire on the North-West Shelf and some of the injured were transferred from our patrol boat to one of the rigs for evacuation to hospital. “Border Protection Command’s role is to detect intruders and to arrest them or not according to the decision of our parent agencies – the departments of Customs and of Immigration. If we’re told to arrest them somewhere on our borders it can turn into a Rear Admiral du Toit began his career as then the people are our responsibility until very reactive day. Otherwise it’s planning the a midshipman in the South African Navy such time as they are safely ashore. command’s relationships with the 27 different in 1975 and served mainly at sea until he “Not all of them are irregular migrants government authorities we work for and relocated to the Royal Australian Navy however; many are illegal fishermen and some developing our relations with the maritime in 1987. Since then he has seen extensive are simply in an SOS situation. industry. operational service in the Middle East and in the Arabian Gulf. He holds a bachelor of “In the recent case of the Oceanic Viking, for “My day is a long day and I try to balance my military science degree from Stellenbosch example, the people on board will remain our life between work and family. University in South Africa and a master responsibility until such time as they leave the “One of my roles is to set the course for where of defence studies from the University of ship. Border Protection Command wants to be NSW. In 2004 he was awarded an AM in the “I personally haven’t visited the action scene in future. Right now it’s in a very successful Australia Day honours list. He has written because the ship’s master and crew for both partnership with Customs and Defence. At two books, the first when he was 15, on steaming the ship and running its hotel one stage the government looked at having a warships and naval history. facilities are all civilians contracted from coastguard along the lines of the US service If the admiral is our frontline trouble spotter P&O; all enjoy my complete confidence and but Border Protection Command is fulfilling Steve Dreezer, general manager of maritime, the political aspects of the situation are not that function so well we don’t need to go identity and surface security at the Office of my command’s responsibility. down that path. Transport Security, in Canberra, is one of our “While I have strategic day-to-day command “Apart from our administration we have very keepers of the crystal ball – the team that tries of patrolling our borders I rely on tactical few overhead costs and the fact we draw on to forestall danger by listing and assessing risks commanders on the spot. I see my personal our parent agencies for all needs such as ships, and briefing industry on how to counter them. role as providing strategic leadership not boats, planes and their crews allows me to Dreezer’s surface security role covers micro-management, to empower my people focus on operations. preventive security for most things except air without interference.” “We’ll continue to evolve as we get runs on transport. The team are policy-makers rather So how does a young admiral – he’s 52 – the board and acquire international partners. than operational or response security. with what is arguably the most operationally It’s important we don’t promise what we Overall the OTS is believed to employ active day-to-day job in the navy schedule can’t deliver and do not create unreasonable around 300 staff with an overall budget of $38 his day? He’s a hard man to catch, rising at expectations. million this financial year and Steve and his 5.45 am to spend early time with his family “We are working closely with India, Malaysia, boss Paul Retter have a heavy responsibility and to update himself on what’s happened Singapore, Papua-New Guinea, New to our nation not in dealing with crisis but in during the night. He’s in his office by 8.00 Zealand, France and the US Coastguard not making sure it doesn’t arise in the first place! am and work begins with a 30-minute VTC only to protect our homeland and the resource Here’s what he has to say: hook-up with joint operations command at installations but also our environment, our Bungendore, then a daily operations meeting “Our aim is to reduce the vulnerability of our laws and the southern ocean fisheries. chaired by Mike Pezzello, Customs’ chief ships, visiting ships, ports, facilities, service operating officer. “Of all the maritime threats a terrorist attack – providers and oil and gas facilities to an act of however remote the chance of it succeeding – is terrorism. “After that I spend a lot of time keeping the most horrific. But our ability to forecast and up with what our teams are doing in the “All maritime industry participants have an prevent that is strong and getting stronger.” field; should there have been an incident approved security plan in place that covers

12 December 2009 three security levels: Command to respond to such things as irregular maritime arrivals. Level 1 at which ships, port and offshore facilities normally operate; “Our security involvement is much broader than terror and is very focussed on global Level 2 for as long as there is a heightened commerce and personal relationships. Global risk of a terrorist incident; travel is part of life and all cross-border Level 3 when there is a probable or movements are vital to social and commercial imminent risk of a terrorist attack, even prosperity so we’re concerned about threats to though it may not be possible to identify the national interest rather than just terror.” the specific target. What about Christmas Island? “Terrorism remains a major threat to “The department and the Federal Police Australia and a very important consideration screen new irregular maritime arrivals there is for Australia to be and to be seen to be a Steve Dreezer, BSc but the detention centre itself is run by the safe place for visiting ships. (marine biology), Dip Ed Attorney-General’s Department. Christmas “The plans cover: Began career in the Northern Territory Island is part of a whole-of-government Police Force. Department of Prime operation.” 57 Australian-flagged ships Minister & Cabinet 2005 prepared Irregular maritime arrivals - the new 74 ports ranging from capital city giants high-level policy advice on transport buzzwords sanitising those who have like Melbourne and Sydney, to remote security and infrastructure. Led traditionally been called The Boat People. The places like the Port of Useless Loop, near Domestic Security Branch following Boat People tag had a noble touch to it, an air Geraldton, in WA London terrorist attacks then of gallant adventurers and the stuff of which 102 port facility operators such as joined Department of Immigration Australia was made. But IMAs? No longer stevedores and Citizenship. Developed and people far less adventurers but a human subset implemented reforms delivering awaiting examination by an anthropologist, 39 port service providers just another acronym so beloved by our admin substantial improvements for people in 13 offshore oil and gas operators, such as classes. Whatever! If you have the fortune (i.e. immigration detention. Woodside, and 68 offshore facilities not drowned on the way) or misfortune to be an IMA on Christmas Island here’s what’ll “Offshore oil and gas operators all have ”Despite the best efforts of Steve Dreezer, happen to you: security plans in place as their platforms ASIO and their ilk the terrorism threat is and associated operations are of national First are checks on health, security and unpredictable and difficult to interpret. Indeed significance to our economy and come identity. The security involves character checks next to the thought of being blown to pieces under the Maritime Transport and Offshore by ASIO and goes back to your activities in the scenario that appears to most disturb most Facilities Act 2003. your country of origin. Australians is the spectre of being swamped “National compliance with the plans is by uninvited and unwanted migrants many Health checks are specially interesting ensured by a team based around Australia. of whom appear to have little to contribute because all biometrics are taken for future These staff work across maritime and aviation except possible expertise in making bombs use in confirming identities of people such transport sectors and the air cargo supply with which to blow us to pieces. as former tourists returning as refugees and, chain. Port security committees also play an presumably, rejected refugees attempting important role in ensuring that these plans are Which brings us to the Department to re-enter the country as tourists. It’s well coordinated and in place. of Immigration and the contribution understood that the Immigration Department its senior people make to the maritime plan is to increase the use of biometrics which “We have very close working relationships industry’s understanding of security. Wikipedia defines as including physiological with other government national security characteristics such as fingerprints, iris Ms Cian Manton is national communications agencies including ASIO, the Federal Police, recognition, DNA, hand and palm geometry manager, Department of Immigration and and Customs. Our role is to support industry and even odour or scent. security planning by providing information Citizenship, in the on the current nature and level of threats absence of Sandi Immigration staff on Christmas Island and risks relevant to its operations, and we Logan who took number a few dozen but as Cian Manton regularly update this information. his annual leave points out: “The island is much more than on about Day 3 of us. It’s a whole-of-government process run “As the maritime industry continues to our negotiations. by the Attorney-General’s Department. grow and change, our approach to security Different sectors provide the detention “We don’t regulation is re-defined. We have regular service, medical services, education and a raft have primary consultative forums including the Maritime of sub-contractors provide services such as responsibility Industry Security Consultative Forum and interpreters and carers for unaccompanied for security,” working groups where we engage with children. industry, SAL and other key stakeholders to she says. “We discuss enhancements such as passenger ship don’t do patrols, “Currently there are 1171 detainees on the screening, technologies, equipment and other for example, but work with other agencies island including teenage children. such as Customs, Defence, Border Security new initiatives. “Unaccompanied children live in a special

December 2009 13 Maritime security

house, go to school on the island, and with for acceptance is: ‘Are you of good character?’ entourage. the help of a non-government organisation, Immigration’s border management has three “Our focus is on security and facilitating Life Without Barriers, are part of the layers: Christmas Island community for as long as travel and relevant issues such as our advance they are there.” Our universal visa which checks against clearance system for incoming cruise ships movements of known undesirables and the maritime crew visa. We’re the first First thought on hearing that is: What a and against an alert list. Hundreds of country to make it available to mariners on wonderful opportunity for Australia to make thousands of travellers pass this test every the internet and industry compliance is 99.8 a lasting favourable impression on these year. per cent. young people. They’re in the biggest adventure of their lives, something their grandchildren Individual cases needing checks on such “We see ourselves as having very strong links will talk about. Let’s hope we’re making sure things as a person’s immigration history, with the maritime industry and its high it is a memory so pleasant that it transcends good character, and the genuiness of what compliance with the regulations makes us all others, even negative attitudes should they say is their reason for coming here. believe we have good relations with it.” the family eventually have to return to their Their incentive to return home. homeland. Compared to the life and death issues “Things do happen that need ironing out e.g. facing our small boat invaders and Back to Cian: “Immigration has a fairly clear wrong travel documents, information coming the explosive horror of terrorism, the security task: We need systems in place to to light too late so that people find themselves prevailing heated debate about who keep out people who are not in our national held up at the border while a decision is interest and we have robust processes to do that. gets and who doesn’t get a Maritime made on what to do with them. Examples are At the same time we have obligations under the Security Identification Card seems people who failed to declare previous criminal United Nations convention on refugees. disproportionate. convictions, rockers and rap stars who arrive “For normal visitors to Australia the basic test with an unconventional member of their The basic differences of opinion in case you

Border Protection Command teams intercept a refugee boat.

14 December 2009 don’t know are between people who say the cards should go only to wharf workers with lily-white characters – no serious criminal convictions of any kind - and those who say that a criminal past should have nothing to do with it so long as you’re a terror cleanskin. In sharp contrast to Canberra there’s no messing about when it comes to Dean Summers, national co-ordinator of the The Oceanic Viking International Transport Workers Federation and long-time member of the Maritime Union of Australia. Mr Summers wears a “I see no real evidence of failure in the card counter-crime which is the job of the police gold* earring, is an expert on ID issues and is and think including crime would have a force. prepared to talk about them right away. terrible effect on security. Crime should be “The government has also wanted to base The first cards are about to expire and he left to the criminal justice system. maritime security on aviation security which points out that there are 90,000 of them “We are concerned about terror because every is a quite different situation to what we have out to workers who require unrestricted time there is an attack transport workers get at seaports. We don’t, for example, have unaccompanied access to the waterfront hurt. But we don’t think its control should thousands of people pouring through our gate within the wharf gates. erode human rights or union standards. We every day as they do at airports.” “We have a very clear idea about maritime spent a lot of time considering how often security both here and internationally,” he background checks should be carried out and says. “The MUA looked at the Transport how detailed they should be. Workers Identity Card in the US and it “You sign your rights over to ASIO to get a *Extract from minutes of appeared to be completely unworkable card and one of our guiding considerations is the Rural and Regional internationally. that this regulation is not counter-crime, i.e. Affairs and Transport “Canada was little better having over-reacted someone who steals cars is not a terrorist. to the requirements of maritime security and “Let’s say you’ve done time for a serious Legislation Committee, wanting all workers to be subject not only to crime such as being a driver convicted of Senator Heffernan in the criminal checks but also to credit checks. manslaughter. Research shows that most “Mr Summers, why “Both countries failed to understand that the actual bombers are cleanskins. Looking at chair: peoples’ backgrounds isn’t going to catch have you got that earring on? “ them. “Australia has been successful and we now have a workable card while the US is still Mr Summers: “It is a tradition trying to find something that sits comfortably of seafarers. My entire family with everyone involved. — my grandfather, my father, Dean Summers “We oppose the school of thought that the my uncles, my brothers and of TheInternational card should be expanded to catch criminals now my son — are seafarers Transport Workers simply because we feel it dilutes the anti- Federation terrorist effort. Union consensus is that we and we have a very strong should not expand the catchment. sense of tradition. Seafarers cards are only for those who actually enter the “However, the Office of Transport Security is traditionally wear an earring, gates. There are no such character and credit saying they want to do it and that will mean a a gold band, in their left ear checks on those outside the gates yet who change of regulations. are in contact with cargo. They range from so that, if they are washed container-stuffers to the managing directors “The government should analyse where we up or they die at sea with no of cargo agencies. will stand in 2010 bearing in mind national values, community values and peoples’ rights money, they can be provided “In Australia the MSIC is a right-to-work and security. Let’s look for serious faults in with a Christian burial.” card. If you don’t have one you can’t work. the existing card and look at them very closely If we keep on raising the bar we need to be instead of introducing anecdotal cases. Chair: “Thanks very much.” very sure of the impact. The MUA has 12,000 members of whom 7000 are wharfies and “The Howard Government appeared to see when the card first came out I was deluged the card as an opportunity to attack the MUA Talking around the maritime industry with phone calls from workers fearing they and there were predictions that 30 per cent of would be penalised for their past. I was able to our members wouldn’t pass the security tests. generally there seems to be a balance of reassure them. “We tried to strike a balance based on the views for and against raising the bar for issue being counter-terrorism rather than an MSIC.

December 2009 15 Maritime security

Jock O’Hagan, security manager of DP World, says: “I do have concerns about the Maritime Security Identification Card and How Britain did it... the need for natural justice to be seen to be A newly-published book* on the history of Britain’s MI5 secret service done in the balance between terror and mere recounts that every effective German agent was rounded up in the single unlawful interference. month of August 1914. And in 1940 MI5 did it again with every German “If there are active criminals I can’t see why agent in Britain under its control; the uncooperative were imprisoned or shot. law enforcement officers can’t deal with them. The history says: “MI5 also ensured there was not a single act of wartime The parameters need to be re-established. sabotage in the UK. You couldn’t ask any more of a wartime security service.” “Security of goods and chattels is a very If the Poms could achieve that in the freezing rain of London’s nightly important commercial concern so structure of a container yard itself is such that security firestorms and the daily devastation of their (and our) boys in red-hot African of direct access is extraordinarily high. For battles ... Then surely 60 years later with our McMansions, beautiful beaches, a container to be opened in the yard would and chardonnay in hand it should be mandatory that we achieve no less. be very visible. DP World, for example, has no packing facilities. Containers come to us *The defence of the realm: The authorized history of MI5 by Christopher Andrew stuffed and leave us stuffed. (Allen Lane, 1032 pages. £30.) “At the commercial security level, my attitude is that we need to protect against illegal we’ll fulfil the government’s aim. aim is for everyone to acknowledge that we interference with cargo. If someone can pilfer are all responsible for security. items then there must be a vulnerability to “Good security is good business. If you know more organised elements. what’s going on in your business environment “As for criminal activity such as illegal then by definition you have put the barriers in imports and exports, Customs has its own “If we prevent the lowest level of criminal place to prevent security breaches. behaviour, we automatically prevent the powers of positive intervention and generally highest; therefore if we should come down as “Security today has moved beyond guards and operate without anyone’s knowledge – low as feasible in detecting illegal activities gates to being a state of mind. Our ultimate including ours.”

The detention centre on Chrsitmas Island

16 December 2009

Shipping proactive in the face of enviro challenges

By Llew Russell and Phoebe Xialiang Qin*

ith the world’s focus on carbon Convention for the Prevention of Pollution applies. For engines constructed on or after emission reduction, shipping is from Ships Annex VI in the latter part of 1 January 2000 a three-tier structure will unquestionably one of the most 2008. The new global standards adopted operate with: Tier I for a diesel engine Wenergy as well as carbon efficient modes call for a progressive reduction in these installed on a ship constructed prior to of commercial transport in comparison emissions and they allow countries to 1 January 2011 applying the 17 g/kWh to other modes such as air freight, trucks create Emission Control Areas (ECA) standard of the existing Annex VI; and and trains. Nevertheless, given that some with even stricter limits. The Baltic and Tier II for a diesel engine installed on 90 per cent of world trade volumes are North Sea/English Channel were the first a ship constructed on or after 1 January carried by ships, the aggregate effect of the ECAs established several years ago. 2011 reduced to 14.4 g/kWh. The total emissions of shipping should not be most stringent controls are for Tier III Under the new global standards, SO overlooked. x for a diesel engine installed on a ship emissions will be reduced from the current constructed on or after 1 January 2016 It is inevitable that shipping will grow 4.5 per cent to 3.5 per cent effective reduced to 3.4 g/kWh when operating in substantially with the expansion of January 2012 and then to 0.5 per cent ECAs. international trade. Det Norske Veritas effective in January 2020 subject to a predicts that with no action being taken, feasibility study due to be completed no The International Chamber of while all the other sectors are forced later than 2018, in particular whether such Shipping is committed to developing industry consensus on CO emissions. to lower CO emissions, the shipping fuel is available in the required quantities. 2 2 Market Based Instruments (MBI) industry will contribute to almost 20 per In ECAs, SO will be reduced from the x are widely expected to form part cent of the total greenhouse gas emissions current 1.5 per cent to 1 per cent in July of the comprehensive package for by 2050. Hence, it is crucial for the 2010 and to a further 0.1 per cent in reducing shipping’s CO emissions shipping industry to tackle environmental January 2015. It is interesting to note 2 and will hopefully be developed by the change and it has indeed embraced this that IMO in July approved in principle, a International Maritime Organisation challenge. joint proposal by the US Environmental during 2010; subject to IMO being given a Protection Agency and Transport Canada The International Maritime Organisation mandate to finalise its work by the United for a North American ECA. took action on reducing the emissions of sulphur oxides, nitrous oxides It was agreed that there will be progressive Phoebe Xialiang Qin is a postgraduate student who worked at SAL as part of the University of Sydney Institute of Transport and particulate matter in adopting reductions in NO emissions from marine x and Logistics Studies work experience programme. amendments to the International engines to which the current Annex VI

18 December 2009 environment

Nations Climate Change Conference in to the Copenhagen conference. The new Advanced engine technology has proven Copenhagen in December this year. website contains information about the to be effective, for instance, the use progress already made by IMO, including of technology such as electronically- As the ICS has pointed out, this is an energy efficiency design indexing for new controlled fuel injection systems for extremely complex task given a wide range ships and the development of shipping engine and valve control enables many of national perspectives on the issue and energy efficiency management plans for all shipping companies to lower their fuel differences of approach between large ships, potential Market Based Instruments consumption. Companies have claimed a and small shipping companies and the and other resources relevant to shipping reduction of 3 per cent in fuel and 25 per extent to which individual companies may and CO reduction. cent in oil by using such technology and a perceive the impact of various options on 2 30 per cent reduction in NO emissions by their own commercial operations. A high In terms of flag restrictions, it should be x installing an emission mode on the engine. level working group has been established noted that about 65 per cent of ships in Shipping lines utilise propeller polishing within the ICS to examine the pros and the world would not be covered by the to lower fuel usage while others include cons of various options for MBI including current Kyoto Annex I, so to avoid ‘carbon hull optimisation and wind drag reduction a possible fuel levy, emission trading leakage’ meaningful reductions by shipping into ship design. One line uses insulation scheme, or some hybrid combination of will be best achieved if the UN conference paint to prevent solar heat transition the two. There is a consensus that any gives the IMO a clear mandate to develop into the cabin therefore lowering energy such instruments should be flag neutral in detailed measures for the sector. consumption onboard. their effect to avoid distorting markets, be In order to reduce CO emissions, simple to administer and provide overall 2 Satellite weather-navigation routing improving vessel fuel efficiency and environmental benefit in respect of climate systems can achieve significant savings. reducing fuel consumption can be change. It is commercially affordable to install fundamental strategies. A case study and has been used by many shipping Furthermore, the International Chamber conducted by BIMCO suggested the major companies. of Shipping has launched a new website, parameter of CO2 emission reduction derives www.shippingco2.org, to explain industry from the ship design such as reduced ship Exhaust heat from the engine also needs efforts to deliver a significant reduction in speed, increased propeller diameter or main to be addressed and now lines have their shipping’s CO2 emissions in the run up engine improvements. own waste heat recovery systems in place while one line uses an exhaust-gas economiser to generate steam from the exhaust waste gas from the engine, and the steam is used to supply power and hence lower fuel consumption. Unlike many other strategies to cut down emissions which can be quite costly to implement, speed optimisation is probably the cheapest and easiest way to lower fuel usage. Optimum speed does not necessarily mean minimum speed and it refers to the speed at which the fuel usage is at its minimum per tonne kilometre of cargo carried. A 10 per cent speed reduction can

cut 20 per cent CO2 emissions. Apart from reducing the amount of fuel consumed, improving fuel quality is also essential. As mentioned above, the current mandatory standard for sulphur content regulated by IMO is 4.5 per cent. However, many shipping lines have already been implementing more stringent standards such as 1.5 per cent sulphur content and others are around 2.5 per cent. Lloyd’s Register has listed various renewable energy possibilities for shipping: gas engines which emit 30 per cent lower

CO2, 85 per cent lower NOx and no SOx; wind assistance claims to produce a 30 per cent reduction in fuel consumption; fuel cells as well as photovoltaic cells are other possibilities. Renewable energy technology is still in the early development phase. However, the shipping industry has already been extensively involved in related research and some technologies

December 2009 19 environment

have already been in trials on vessels. For Another line has built a large bilge tank generally used on vessel hulls to lower example, one line is actively involved in storage which enables environmentally resistance without harming the marine projects for wind turbine, fuel cells and friendly waste disposal ashore and a environment. solar panels, and it already owns a green tug large incinerator to burn sludge oil Apart from the above, air type which is fitted with 12 solar panels. Another instead of dumping it but without stern tube seals are also used by line’s vessel is equipped with 328 solar emitting harmful substances into the panels which support 6.5 per cent of the air. companies to further protect marine electricity used on board. Another company life. Moreover, Royal Caribbean Grey and black water from ships established its “Ocean Fund” for generates propulsion forces by the use of a contributes to marine pollution marine conservation programmes towing kite. particularly for the cruise ships. To to support marine restoration and cope with the issue, major cruise Ozone-depleting substances emitted by conservation organisations. Carnival companies such as Royal Caribbean refrigerated containers or air conditioning has installed a scientific data gathering systems onboard are also part of greenhouse and Carnival have installed waste water treatment systems to reduce the device that monitors ocean water gases. Many shipping companies ensure quality and transmits the data to assist zero ozone-depleting refrigerants are impact on the sea. Royal Caribbean environmental organisations such as used in the reefers. Energy saving reefers was among the first to install the the International Seakeepers Society with intelligent control systems are widely Advanced Water Purifying (AWP) for research of global climate changes used that enables them to cut energy systems that treat waste water and produce a much cleaner effluent for and cyclical weather patterns. consumption of reefers by up to 50 per cent discharge. Similarly, Carnival also without compromising refrigeration quality. Ship recycling is widely practised established its black and grey water and one line has invested in advanced Onboard waste poses a threat to the Rochem system that utilises ultra recycling facilities and started a marine environment if the waste is not filtration membranes to treat black and appropriately handled. This issue can be grey water to a level that is reusable ship recycling project to replace particularly evident in cruise ships. To cope for toilet flushing, deck washing and ship scrapping and to lower the with the issue, Royal Caribbean has its laundry. environmental impact. Save the Wave program which integrates Ballast water management The Journal of Commerce (2007) Reduce, Reuse and Recycle waste on daily programmes have been widely stated that: “The 2 million ocean on-board operations while Carnival also implemented by shipping to containers that are built each year are includes its passengers in the recycle reduce the amount of ballast water cutting into forest resources that go programme and only allows offloads of discharged. Wallenius Wilhelmsen into container floors”. Many shipping waste on land. Another shipping line has has installed ballast water treatment companies have already started replaced incinerators with a fully automated systems to avoid the transfer of marine promoting green containers which high performance compactor system which organisms and others have been have flooring made of plywood or allows 80 per cent reduction in waste working with Nutech O3 and have bamboo instead of wood to prevent volume. conducted trials of ozone generation deforestation. Some operators have Discharge of waste water is another critical to treat and decontaminate ballast started to use 100 per cent recyclable issue. IMO regulates the discharge of bilge water. One cruise line uses onboard containers which are made of light ballast water treatment technology water at less than 15 ppm oil content. steel. This not only helps to conserve and, in addition, using the liquid However, most companies comply beyond resources but also reduces overall weight produced by AWP for ballast the regulated standard and reduce oil weight. water instead of sea water is also under in water to less than 5 ppm. A line has consideration. While designing new vessels, most developed a sludge handling unit to remove all water from sludge hence reducing the In terms of anti-fouling paints, TBT- shipping companies are trying to amount of sludge oil discharged offshore. free and non-toxic silicone paint is incorporate as many initiatives mentioned above as possible. Many of the world’s largest container vessels employ new technologies such as waste heat recovery systems onboard which reduce fuel by 10 per cent as well cooling reefers by water that lower reefer energy consumption by 15-20 per cent. Shipping lines will continue to investigate and implement new and innovative ways to reduce their environmental footprint. They will also actively participate in international fora to ensure that they can play their part in the hoped-for international agreement on how to tackle climate change. PA NT ONE 288 C/U 288 ONE CMYK 100/067/000/023 CMYK

September 2009 21

PANTONE 288 C/U CMYK 100/067/000/023

PANTONE 288 C/U CMYK 100/067/000/023 Logistics

Working groups step up the ability to meet future logistic challenge

By John Begley, chairman of the Victorian Freight and Logistics Council

he global financial crisis may modal alternatives and determine the in extended core hours, out-of-hours have induced a temporary lull most appropriate for any given task, in availability and IT connectivity that are in demand for freight services order to get the most out of the system. major contributors to smoothing the but the onward march to a predicted The councils’ joint study is examining container flow to, from and within the T the different strengths and suitability of port of Melbourne. doubling of volumes, with all the transport modes available for interstate The council is monitoring and reporting potential problems that brings, seems general freight movements, with the aim on the progress of work underway sure to resume sooner than expected. of discovering the best uni-, bi- or multi- by 1-Stop, the Port of Melbourne modal solutions for the Melbourne-Perth The Victorian Freight and Logistics Corporation and the Victorian Transport and Brisbane-Melbourne corridors over Council has developed a reputation for Association, on enhancements to vehicle that 15-20-year period. taking on the toughest supply chain issues booking services, the development of and finding workable solutions. And we The study is looking at reasons behind service agreements between stevedores have no intention of taking the foot off the current modal choice, studying current and and road carriers, and new tools for empty accelerator – in fact we’re busier than ever. future demand and supply, scrutinising container parks. If anything, the downturn has provided the detail of selected freight movements The study’s extension is being facilitated opportunity to harness more industry and requirements, and uncovering likely by Paul Garth – who conducted the expertise to work for the future. benefits of, or constraints to, modal original study – and has been replicating switch or diversity. A final report will This year council built on its successful the philosophy and modus operandi of advise the freight councils and their technique of nurturing standing working the 2005 work: the concept of industry sponsoring governments of the advantages, groups - which undertake detailed changing from the inside out is being opportunities and impediments and research, industry initiatives and provide applied through interactive workshops, possible action to achieve optimal freight advice back to the council through their resulting in a wide range of initiatives that movement outcomes. leadership – by adding two more. The are enthusiastically embraced by affected Freight Intermodal Efficiency Group and The freight group is also busy expanding members of the supply chain. the Infrastructure Working Group have its now world-recognised Business Meanwhile, the Infrastructure Working been joined by the Infrastructure Working Activity Harmonisation Study by Group is working on its bi-annual update Group and the Victoria Airfreight extending its coverage to distribution of Freight Forward, the VFLC’s take on Working Group. Collectively these mini- centres. councils have up to a dozen projects infrastructure requirements for the next 10 underway or in development. In 2005 the original study identified years, prepared and presented as advice to some 200 issues that were impacting on government. For example, the council is working with sea freight supply chains in the port of In some ways this year’s report will be a its Western Australian and Queensland Melbourne, and the freight group then response to the Victorian Government’s counterparts on a project to determine went to work on six key themes prioritised own Transport Plan and its Freight the optimal national paths for domestic for immediate attention. This year an Network Strategy. We can’t just let the freight as we head towards that 2025 update of the study revealed participants government track along without any sense forecast. in the chain now understand that what of implementation urgency. So we will be they previously regarded as discrete The Multimodal Australia Responsiveness bringing them up to speed on a range of actions (or inactions) cause huge knock- Project is examining the benefits of a significant influences on the freight and on disruptions to logistics efficiency and broader modal spread to meet freight logistics industries, such as the impact of effectiveness elsewhere in the system. demands, particularly for inter-capital the economic slowdown, the responses movements, with the aim of delivering This lack of uniformity was a constant to climate change, the practicalities of improved cost and efficiency levels for the source of immense frustration and migrating industry to the government’s transport industry and lessening negative unnecessary cost. People just weren’t grand plans, and so on. impacts on the community. thinking outside their own patch. But this We’ve also been working on our update revealed enormous improvements It aims to compare and contrast various Infrastructure Upgrade Priority for Victoria

22 December 2009 Freight Routes 2009 survey, which provides significant input to Freight focus will remain on quality input and achievable outcomes. Forward. In current economic circumstances governments will struggle John Begley, now in his second term as chairman, was recently to undertake major transport infrastructure projects as soon as we’d all Working groups step up recognised at the Victorian Transport Association’s annual awards like. as having made the most outstanding contribution to the Australian The group decided to turn the spotlight on what’s most achievable freight and logistics industry over a protracted period of time. the ability to meet and effective – in other words, what can provide the most bang for the buck. Victoria’s freight and logistics industry needs productivity gains right now - so we’ve tapped the people at the coal face to tell us where governments should invest their money to get results as soon as future logistic challenge possible. We’re excited by the establishment of the airfreight working group, By John Begley, chairman of the Victorian Freight and Logistics Council following the merging of the former Victorian Airfreight Council into the logistics council in a move that brings all transport modes together under one roof for the first time. Now we’ll be working to apply the Gateway of Choice value proposition to air freight, stressing our strategic location, multiple international airports, curfew-free operating hours, substantial land banks for expansion, excellent road networks to key population centres, and proximity to the port of Melbourne for those companies using sophisticated air/sea supply chains. PB Transport and logistics is expecting to face serious workforce shortfalls and competition from other industries over the next 20 years. In recognition of this the key objectives of the Transport & Logistics Workforce Advisory Group will be focused around future workforce strategy issues. Specifically, developing strategies to assist industry and government at all levels to: improve access to appropriate transport and logistics industry Towage education, training and employment; improve workforce planning, recruitment and retention practices, including workplace arrangements and environment and input to national issues where appropriate (e.g. skilled migration, tertiary education and training); and provide advice on streamlining transport and logistics industry repeat regulatory impediments. The VFLC has a busy 2010 ahead but whatever the activity level, its

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1. Sue Perry, Murray Goulburn Co-Operative 9. David Munro, ANL 17. John Hennessy, MAV 2. John Begley, Begley Hobba and Manton (Chair, VFLC) 10. Ralph Kenyon, Port of Hastings 18. Bill Reed, SCT Logistics 3. Minister Pallas, Minister for Roads and Ports 11. Bill Baari, TWU 19. Wayne James, ARTC 4. Rose Elphick, CEO VFLC 12. Phil Lovel, VTA (and Chair VFLC's IWG) 20. Scott Paterson, Port of Portland 5. Graeme Walker, DHL 13. Chris Fennell, TWU 21. Chris James, VECCI 6. Wes McDiarmid, Rohlig 14. Paul Blake, ASP Logistics 22. Gary Liddle, VicRoads (and Chair VFLC's VAWG) (and Chair VFLC's FIE Group) 23. Peter Tuohey, VFF 7. Ken Wakefield, Wakefields Transport 15. Angelo Demertzis, ARTC 8. Terry Garwood, Department of Transport 16. Richard Pierse, Future Force Logistics

Infrastructure and national consistency of regulation is an ALC focus

By Michael Kilgariff, chief executive officer, Australian Logistics Council

n many areas of Australian public advocacy, regulation and infrastructure, To ensure the pressure for reform was policy the trend is towards national aimed at improving the efficiency of maintained, ALC wrote to Australian consistency of regulation and the Australia’s T&L industry. As a result, transport ministers prior to the 6 Itransport and logistics industry is no ALC has moved its headquarters to November 2009 Australian Transport exception. Canberra in a signal to Governments Council (ATC) meeting, strongly encouraging ministers to continue the This move to national regulation around the country that the T&L has also increased the focus on the industry is determined to play a larger push forward for nationally consistent consistency of the myriad of regulations role in the great microeconomic reform regulations in rail, road and the that remain with the states and debates in the years ahead. maritime industry. territories. This is understandable given ALC fully supports the Council of ALC was delighted that ATC chose to transport and logistics is a national Australian Governments (CoAG) continue the national transport reform industry, one which ultimately requires plan to put in place a seamless agenda by pushing ahead with key one common set of rules. national economy – an outcome decisions on arrangements for single The transport and logistics industry is a Prime Minister Rudd has said would national regulators in rail, maritime and critical part of the Australian economy, ‘lift national productivity and allow heavy vehicles. generating 14.5 per cent of Australia’s transport operators to get products onto ATC recommitted to the reform agenda GDP and providing more than 1 supermarkets shelves and our exports to by agreeing to make recommendations million jobs across 165,000 companies. market at the lowest cost’. to CoAG on a host jurisdiction for the ALC estimates that every 1 per cent Ultimately, nationally inconsistent national rail safety regulator and that a increase in efficiency will save Australia regulation and red tape only adds host jurisdiction for the national heavy around $1.5 billion. considerable and unnecessary costs to vehicle regulator be agreed upon. Australia’s freight task has more than Australian consumers and exports. Of equal significance is that the doubled over the last 20 years and is To demonstrate the level of industry Australian Maritime Safety Authority expected to almost double again by support for consistency of regulation in will be the national regulator for 2020. The necessity to drive efficiencies the T&L sector, prior to the last CoAG maritime safety, responsible for in the transport and logistics supply regulating commercial vessels. chain becomes critically imperative meeting in July 2009 Toll, Linfox and given recent Treasury estimates that the Transport Workers Union wrote This agreement by ATC is a significant Australia’s population will increase to 35 to Prime Minister Rudd supporting a step towards national uniformity in the million by 2050. single national heavy vehicle regulator. T&L industry. The development of nationally A small delegation of ALC members However, the need to maintain consistent regulation, increasing also met with Infrastructure and pressure to ensure these reforms are interconnection of infrastructure Transport Minister Anthony Albanese implemented remains imperative as across state borders, and T&L and committed to work closely with there are a number of hurdles yet to companies operating across Australia government to move ahead on this and be encountered. The next significant and internationally has produced an on other parts of transport reform. step will be for the December 2009 increasing need and justification for The subsequent decision by CoAG CoAG meeting to endorse the ATC recommendations in full and to give national standardisation of transport to create single national regulators clear instructions to officials to put industry regulation. for heavy vehicles and for maritime them into action. It was also a key factor behind the transport was branded ‘historic’, decision by the Australian Logistics especially in light of previous failed ALC will work with all governments to Council early in 2009 to announce a attempts to progress these and similar ensure this is the outcome of the next significant re-positioning to focus on reforms. CoAG meeting.

24 December 2009

Infrastructure and national consistency of regulation is an ALC focus

By Michael Kilgariff, chief executive officer, Australian Logistics Council Tradegate news by

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am delighted to introduce enable better management of the physical, documentary Tradegate News – a special and administrative processes, improve customer service and Isupplement in Shipping reduce overall costs. Australia. Tradegate News will Improved information also has the potential to provide the appear in each edition of Shipping industry with the ability to better utilise scarce infrastructure Australia over the next 12 months. resources without the need to invest hundreds of millions of Tradegate’s partnership with dollars in expensive infrastructure upgrades. Shipping Australia Limited reflects Electronic information is not a panacea for the industry’s ills. the 20 year history of the two However, it is a means of reducing costs while improving organisations, with the forerunner customer service. A win-win for all parties. to SAL, Australian Chamber of Shipping, being a founding member and initial subscriber of Tradegate. An efficient electronic information exchange should be based on agreed standards. While every company believes The role of shipping and SAL in addressing many of the in standards, unfortunately many companies believe that issues confronting the maritime supply chain was clearly their own proprietary standard is the best one. As a result identified in the BAHS Stage Four Report (see BAHS Report there are a plethora of standards being used. This acts as a page 66). Industry participants recognise that without the co- disincentive to exchange information electronically, resulting operation of shipping lines, no entities in the maritime supply chain in lower efficiency and productivity. will have any information upon which to make business decisions. While there are many standards in some areas, in one Tradegate, as the only whole of maritime supply chain particular area there is a lack of an acceptable standard, and representative organisation, is in a unique position to observe this is preventing improved information processes. Tradegate and comment upon some of the many issues impacting upon and Shipping Australia, together with the container park the maritime supply chain. While not all issues are within industry, have agreed to use the international UN/EDIFACT the purview of Tradegate’s mission and objectives (see box COPARN message for the reporting of export releases from page 2) the provision and receipt of information are vital shipping lines to container parks. to improvements in the efficiency and productivity of the maritime supply chain. This standard is an important building block to provide better information services to container parks and to begin to A central theme of Tradegate’s history has been the implement much needed reform in this almost untouched area development and implementation of strategies to enhance of the maritime supply chain. the flow of information in electronic formats that can be automatically processed by computers. Tradegate’s Annual General Meeting in November will see the retirement of Stephen Morris – executive director Over the years since Tradegate’s founding, there have been a of the CBFCA – as a Tradegate director after 15 years of myriad of government reports that have identified the need for dedicated service. Mr Morris has been instrumental in many co-operation and collaboration to improve the supply chain. of the major decisions that have influenced Tradegate over Tradegate sees the provision of electronic information as a the past decade and a half. He was instrumental in the key means of providing the co-operation tools required by the eventually successful negotiations over the Cargo Automation industry. Development Funds resulting in over $3.3 million being Many readers will be aware that Tradegate is promoting made available to industry for investment in much needed the benefits of a port community information system. These projects. He has made a significant contribution to the systems operate in over 40 ports around the world and provide success of Tradegate and was always prepared to utilise his low cost business information to all port community users. considerable expertise for the betterment of the industry. On Tradegate believes that a port community information system, behalf of all Tradegate directors, members and staff I wish to that is neutral and independent, will enable business to make publicly acknowledge his contribution. better informed commercial decisions, leading to reduced costs and improved asset allocation. PortBIS will link all port Peter Blanchard users, make the maritime logistics process more reliable, Chief executive officer

December 2009 27 Tradegate’s Objectives

Membership To create a broadly based PortBIS – A searched also highlighted that most large community of members from all importers and forwarders would prefer sectors of Australian business and port community to have their information electronically government. information system supplied in a format for automatic input into their software applications. Community based electronic In 2008, in response to the NSW commerce services These requirements highlighted the Government’s IPART Report on Port current disparate maritime supply To develop a comprehensive Botany, Tradegate proposed that a chain information flows (see box) with strategy for responding to the port community information system, every entity connecting to every other community’s need for electronic PortBIS, be implemented as a means entity. This makes automation relatively commerce services through a to improve the flow of cargo through expensive, especially if standards are not consultative process. Australia’s second largest container port. used. To arrange for the creation, This recommendation was supported by Shipping Australia. PortBIS is designed to gather data from implementation and operation of multiple information sources and provide electronic commerce services as Why PortBIS? that information either via a web browser required by communities of like PortBIS arose as a direct result of or as an automated electronic message. interest from within the member feedback from importers and freight That is, the output of PortBIS is a single base - the principal example of forwarders about the difficulties they electronic format making it economical to this being Australia’s international faced in obtaining information about automate. trading and transportation sectors. their containers/cargoes. In particular, The PortBIS pilot demonstration project To manage, administer and cargo owners and their agents wanted has been available since January 2009. market these community based automated answers to: The pilot adopted a number of key electronic commerce services on What ship is my container on? principles: behalf of the members. Obtain data from the source e.g. To collect statistical information When is the ship scheduled to vessel arrivals and departures from from the electronic commerce arrive? Sydney Ports Corporation. services for the purpose of Has the vessel arrived? measuring performance and market Wherever possible, use existing data penetration. When is the container available? so as to keep costs low. To encourage technology and Has it been discharged? Use industry agreed standards. information providers to add Has the DO been issued? Adopt a national outlook, not an value to the electronic commerce individual port outlook. services through the provision of Has the container been picked up? additional services as required by Avoid re-inventing the wheel. Has the empty container been the members. returned? The initial pilot focused on vessel arrival Standards No one entity is currently able to answer and departure information the provision To promote the establishment each of these questions as different of empty container return information and container alerts. and implementation of national parties in the maritime supply chain and international standards that control different events. For example, During the pilot, over 130 users have reflect the business requirements shipping lines are the only entities that accessed the empty container return of members and enables the cost know which ship a container is on. information within PortBIS while over effective facilitation of electronic Similarly, only a stevedore knows when 290 users accessed the vessel arrival commerce. a container has been discharged from a and departure information. A number of vessel. Representation customers requested similar information from Brisbane, Fremantle, Adelaide and Importers and forwarders are irritated To represent members on the Melbourne. by the need to go to multiple web sites, relevant national and international make endless phone calls to shipping Tradegate is pleased to announce that electronic commerce bodies. lines, transport companies and container Maritime Safety Queensland, Flinders Advocacy to government parks to access and research this Ports and Fremantle Ports have agreed To represent the interests of information. A broad consensus has to provide vessel arrival and departure emerged within the maritime supply chain members and to advise and information to PortBIS. that between 20-35 per cent of customer influence government where PortBIS is receiving empty return service calls are non-value adding calls policy modifications are required information from 45 container parks about “Where is my container?” This is a to assist the facilitation of across Australia on behalf of 12 shipping substantial cost for the industry to bear. electronic commerce. lines including Maersk, Hapag Lloyd, The myriad of websites needed to be Hamburg Sud, NYK, PAE, MISC, APL,

28 December 2009 NEWS

COSCO, Marfret, Zim, STX Pan Ocean, and Inchcape. During September and October 2009, a national PortBIS workshop road show featuring a live demonstration of the Felixstowe port community system – Destin8 – was conducted. Over 200 industry people attended the workshops representing all facets of the industry – port authorities, shipping lines, stevedores, importers, exporters, container parks, transport companies, Customs, AQIS, freight forwarders, customs brokers and government agencies. Respondents to the survey following the PortBIS workshops strongly recommended that the PortBIS pilot should proceed to full implementation. Survey respondents identified a number of important areas to be included in PortBIS. In preference order these were: Should you wish to be involved in The symposium was attended by over PortBIS, or wish to receive further 200 guests and heard case studies Schedule information information about it, please contact from Singapore, China, Chinese Taipei, Container park visibility Tradegate on 1300 552 393. Hong Kong SAR, and Korea as well as Australia. Cargo availability One of the themes that came out of Empty container return confirmation International developments the symposium was the supportive role Single national system, this include played by government in many Asian ports, CTO and shipping lines countries with Australia being the only In September Tradegate was invited country where there was not a close public- Dangerous goods reporting to present a case study on the private partnership relationship for the implementation of electronic delivery Empty container release confirmation provision of cross border paperless trade. orders and payments to the APEC Vessel schedules E-commerce Steering Group’s Paperless Symposium attendees were amazed Cross Border Trade Symposium in Taipei. that the electronic delivery order was Container tracking Customs and AQIS status Phase 2 of PortBIS focuses on a national dangerous goods reporting system, the Current Future first component of which is in final test with the Port of Brisbane and Fremantle Ports.

Phase 3 is a project which aims at Exporter Exporter Shipping Shipping Depot Depot improving the flow of information about Line Line the release of empties and the return of empties. This container visibility project Port Transport Port Transport is being supported by the Victorian Authority Company Authority Company Totally Inefficient Transport Association and the Port of PortBIS Brisbane as well as a number of shipping lines, container parks and transport Importer Stevedore Importer Stevedore companies. It is an excellent example of a collaborative and co-operative Freight Statutory Freight Statutory Forwarder Authorities Forwarder Authorities approach to some of the issues facing Customs Customs the industry. Broker Broker The container visibility project is scheduled to become operative in the first half of calendar 2010.

December 2009 29 In brief The board of Tradegate Managed Mail saves for 2009-2010 is: the day

Garry Campbell Tradegate’s new business Ian Murrary AM, Australian continuity service, Managed Institute of Export Mail, has assisted Melbourne implemented without any involvement Customs broker Reliable Customs Llew Russell AM, Shipping from a government agency in Australia. to continue to operate even Australia Limited Other features of the symposium were: though the Telstra lines into David Katte, CBFCA its building had been cut by a Paperless cross border trade is no longer an option; if companies Brian Lovel, AFIF building contractor. Tradegate are not going paperless, it is a couriered a wireless router to Geoff Clark, TNT Australia competitive disadvantage. Reliable Customs within hours Peter McNamara, Airlift of the problem being identified. Paperless cross border trade is Bob Fraser, Connor Anderson This enabled Reliable Customs about when and how, not if. Doug Meuross, CyberFreight to continue to access its Customs Co-operation and collaboration are The new chairman will be elected and other mission critical mail. critical success factors. Last reports indicate that the line at the meeting on 18 November The symposium endorsed the need 2009. will not be fixed for 10 days. for an APEC approach to developing a framework for cross border Membership increases Government appoints authentication for digital certificates. new UN/CEFACT head The symposium suggested that the Membership of Tradegate has of delegation Pan Asia E-commerce Alliance’s surged over the past three months certification framework could be used as with 112 new members primarily The Department of Foreign Affairs a benchmark. those involved in the export trade. and Trade (DFAT) has advised Tradegate is an associate member of the that the department will appoint Pan Asian Alliance. a senior DFAT representative to the position of Australian head of Standards delegation to UN/CEFACT. This follows submissions by UN/CEFACT, the UN Centre for Trade Tradegate and other organisations Facilitation and Electronic Business, about the need for Australia to is the primary international standards- have appropriate UN/CEFACT setting body for e-commerce. UN/ representation. CEFACT is responsible for the UN/ EDIFACT message libraries and core components. International Trade and Business Process Group 3 (TBG3 – Transport and Logistics) has announced four new projects of direct interest to Tradegate and the international trade and transport community. The four projects proposed by TBG 3 focus on developing business process models for documenting business scenarios and business transactions in:

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Multi-modal dangerous goods was instrumental in the establishment of Freight and Logistics Council’s Business declaration process; ITIGG in the mid-1990s. All of Tradegate’s Activity Harmonisation Study (BAHS) UN/EDIFACT message implementation released in 2005. Transport instructions; guidelines comply with ITIGG standards. Transport status report; and Tradegate and Shipping Australia will jointly release the final version of the message in Waybills include bills of lading, Container November 2009. To obtain a copy of the house and maser bills, road and rail message visit www.tradegate.org.au or consignment notes. announcement www.shippingaustralia.com.au. The output of each project is intended to message be used to: Tradegate, in collaboration with Shipping Tradegate Board of Create and validate XML messages; Australia and the container park industry, Directors 2009/10 Validate existing UN/EDIFACT has finalised the Export Release Container messages; and Announcement Message. This message implementation guideline is based on the Create new versions of the Standing left to right: UN/EDIFACT COPARN D03A format. ITIGG (International Transport Doug Meuross, CyberFreight Implementation Guidelines Group – In a series of meetings commencing in mid a TBG 3 sub-group) Principles and 2008 between shipping lines and container David Katte, CBFCA Rules documents for dangerous parks, it was agreed that shipping lines Llew Russell AM, SAL goods, freight movement and status would generate an EDI message to advise report. container parks of export releases. During Brian Lovel, AFIF development of the message, it was further Members wishing to be involved in any Peter McNamara, Airlift agreed that the same message could be of these projects; or who wish to be kept Ian Murrary AM, Australian used to advise container parks of empty informed of developments should contact Institute of Export returns. Faulkner Macdonald at fmacdonald@ tradegate.org.au in the first instance. This message will form a cornerstone of Seated left to right: the container park visibility project which Tradegate has been involved with TBG Bob Fraser, Connor Anderson will go some way to implementing many 3 and its predecessor for 20 years and of the recommendations of the Victorian Garry Campbell Geoff Clark, (Chairman) TNT Australia The economy By Tim Harcourt, chief economist, Australian Trade Commission

Down Under to Down Wonder: Australian exporters The great recovery and the soaring dollar

The Australian dollar is now in 90 cent of medium-sized exporters engage in some territory and there are fears this could form of hedging (compared to only 5 per affect our strong showing in ‘the great cent of small exporters and 4 per cent of recovery’. There is even some market micros). speculation that the Aussie battler will Secondly, other economic factors are reach parity with the greenback. important. Of course, strong commodity Naturally many market economists prices matter as does overall growth in have also speculated as to how the high the world economy. Long term growth exchange rate would affect exporters. The in export volumes are mainly determined general school of thought says that an by global economic demand, so return appreciation of the exchange rate (that is to growth in the world economy – the Australian dollar is more expensive particularly in the Asia Pacific - will be a in terms of US dollars) makes Australian more important factor affecting exporters exports more expensive and imports than a 90 cent plus exchange rate. If the cheaper. Goods and services exports emerging economies can lead the recovery that are particularly price elastic (that is, in the 80s’ (Skyhooks reunion album) consumers are sensitive to prices changes) from the GFC then this will be crucial for and are now further north to the ‘nervous our exporters. may see demand fall sharply, whilst price nineties’. elastic imports will see a big pick up in Thirdly, most media commentary says that Why is this so? Basically, since the demand. This is assuming, of course, that exporters will be losers from a high dollar Australian economy became more lower prices are passed on. and importers will be winners. But they internationalised, the majority of our are not two distinct groups. Around 45 Business groups are also worried – exporters don’t let fluctuations in exchange particularly in areas like agriculture and rates ruin their business plans. They see per cent of Australian exporters are also manufacturing where higher commodity a moving exchange rate as a fact of life importers, so a high dollar may mean a prices are not on offer like their resources of operating in the global economy and more expensive product on the price side, counterparts. Whilst non-rural commodity make their decisions based on long-term but it may also be cheaper on the cost side prices have been holding up better than plans and building strong relationships when an exporter imports components expected – thanks to the China’s insatiable with clients, customers and business or stock. It’s a matter of swings and appetite for coal, iron ore and liquefied partners. One lesson of the Asian financial roundabouts. natural gas - other sectors of the economy crisis that occurred a decade ago was that But don’t get me wrong – exporting is a have not been so fortunate. Australian firms that stuck in the region tough game. But it is also commercially ‘through thick and through thin’ were well However, when you look at the dollar’s rewarding as exporters, on average, earn regarded in Asia when the economies behaviour and its effect on exporters more high profits, are more productive and bounced back (nobody likes a carpet closely, there is a little bit more to it than grow faster than non-exporters. They first meets the eye. bagger who takes off when the going gets rough only to magically reappear when can therefore absorb external shocks in Firstly, the exchange rate is just one factor times are good again). We’re seeing similar exchange rates and commodity prices as affecting the decision to export. Most of things occurring in the Global Financial they are in it for the long haul. the economic evidence shows that since Crisis (GFC) too. Australia is one of the few economies in the Aussie dollar was floated over two the world to achieve export volume growth decades ago, exporters have got used to In fact, according to research by Austrade fluctuations in exchange rates as part and DHL, whilst most exporters regularly despite an 11 per cent fall in world trade and parcel of doing business off shore. monitor the exchange rate, only 20 per in 2009. That Australian exporters have For example, after the Sydney Olympics cent believe that it will affect their decision achieved this, despite the GFC and the in 2000 the Australian dollar was worth to further invest or expand their overseas associated ‘recession porn’ we read in the around 50 US cents but since then we’ve operations. Many exporters also undertake press, is a remarkable achievement and seen a gradual appreciation of the dollar ‘hedging’ in their contracts to mitigate helps explain why the Australian economy and we’ve been ‘living in the 70s’ for some against future changes in the exchange has gone from ‘Down Under’ to ‘Down time (as iconic Melbourne rock band rate. According to Austrade/DHL survey Wonder’ in the eyes of many international Skyhooks used to say) and now we’re ‘live data 24 per cent of large and 25 per cent investors.

32 December 2009 an opportunity to transform itself. “Modern Korea’s first economic phase in the 1980s, Seoul mates and was ‘perspiration’ as it worked up a sweat establishing it self as an industrialised country, then it moved into a phase of ‘aspiration’ as it joined the OECD, now it will be in a phase of ‘inspiration’ as it the great recovery transforms itself to deal with a new world with the challenges of climate change. A company like Samsung will be completely different in five years time as it will reinvent eoul has played an important role in breathed back into the steel sector after itself to be a leading environmental player Australia’s economic and diplomatic a tough year for durables. After all, the history. In fact it was in Seoul twenty GFC has been tough on all countries that on the world stage.” yearsS ago, in 1989, that the Australian focus on consumer durables and industrial John Walker believes that the GFC has Prime Minister Bob Hawke launched the production – with Singapore, Japan, US, and forced Korea to change from the old ways APEC concept following key spade work Korea all suffering – and stocks have been of propping up old inefficient companies by Australia and the Republic of Korea to run down. But Gurr expected better times but the experience of both the ‘IMF Crisis’ build the foundations of an Asia Pacific ahead from POSCO, Hyundai and the of 1997-99 (what we call in Australian, the community. Hawke launched the APEC other Korean chaebols after some steel price Asian Financial Crisis) and the GFC has concept in a speech in Seoul in January slashing. A high proportion of Australia’s given Korea more confidence. 1989 and the first ever APEC meeting was resources action is in ferrous metals held in Canberra in the November of that (supplied by Rio Tinto) and LNG (led ably And Korea does have a reason to be year. by Sean Rodrigues in Seoul) so recoveries confident as, like Australia, it avoided When I interviewed Bob Hawke recently, in industrial production will help Australian a technical recession. After a sharp he paid tribute to the efforts of the Republic exports in those key sectors. contraction in December quarter 2008, of Korea in helping to set up an Asian- Of course, in agribusiness, beef is one of Korea achieved a 0.1 per cent growth in Pacific community “in response to the the key commodities in the Australian- the March quarter and 2.6 per cent in the global economic tensions resulting from the Korea trading relationship. On the airport June quarter. The Finance Ministry expects end of the cold war”. Hawke believed that economist’s last visit to Seoul, the anti-US a growth rate of between 1.5 and 2 per protests during the BSE crisis had boosted there was some fear that the United States, cent in 2009, with some think tanks and unable to resolve its trade problems with Australia’s beef exports to Korea. Whilst market economists expecting an even more Europe or Japan, would potentially retreat things should be returning to normal as US robust result. Expansionary policies are still into economic isolationism and that this imports return to Korea’s shores, Australia’s would result in the formation of three major still maintaining a remarkable 61 per cent in place, and the Bank of Korea has kept trading blocs based the world’s three leading of the imported beef market in Korea. interest rates at a record low of 2 per cent currencies. Hawke said both the Australians According to Jim Lim, Korea’s regional for six straight months, although they may and the Koreans decided to develop APEC manager for Meat and Livestock Australia, follow Martin Place if the stronger data as a consensus based organisation to “we’ve maintained our market share as continues. we’ve been able to campaign on the fact help “strengthen the world economy and So for Australian exporters – from resources, that Australian beef is ‘clean and safe’ and promote economic co-operation and freer to beef to financial services and even car trade”. we have a reputation as a supplier for being reliable and trustworthy”. But Lim warns parking (Wilson Parking recently set up Since then, the Republic of Korea and that it will be tough to keep up that share in Seoul under the stewardship of Henry Australia have not only been important once US supplies return to normal although Louie) – and investors, Korea is going partners in international diplomacy, but have he does see room for expansion to be an important economic market for also become important trading partners as Australia in years to come. And the signs of well. And with both nations having had to Lim is a key player for Australia in Korea. endure the global financial crisis, being close A self-described ‘1.5 generation Korean recovery also give reason for some cautious trading partners committed to openness Australian’ (or as Austrade Seoul’s Young optimism too. And there’s been some good and regional co-operation matters like never Yu calls them, ‘Kaussies’), Lim once headed news for Australian-Korean relations on the before. Bilateral merchandise trade between Telstra telecommunications operations ‘big picture’ diplomatic front as well. Now the two nations remains strong despite the in Seoul. He’s a bit of a ‘Mr Fixit’ for in 2009, twenty years from Bob Hawke’s Australian companies looking to crack GFC. In 2008-09, trade was A$25.7 billion, speech in Seoul, another Australian Prime up 26 per cent on the previous financial year. into the Korean market. But can a business representative move from two seemingly Minister, Kevin Rudd is working closely Whilst Australian exports did fall sharply in with Korea. It was at Rudd’s suggestion the first quarter of 2009, they have recovered different industries as diverse as telecoms and beef? It seems that Jim Lim can, as he’s that Korea host the next G20 summit. In to around 2008 first-half levels. Services had remarkable success working in Korea on fact, there are similar parallels to 1989, a trade was worth around $2.4 billion in 2008, behalf of a number of Australian companies. global crisis, a need for global and regional which is slightly up on the previous year. In the financial services sector both co-operation and Australia and Korea On a recent visit to Seoul, the airport ANZ Bank and Macquarie Bank have a jointly taking an important economic and economist got a better feel of Australia’s significant presence in Korea. Financial diplomatic leadership role. Whether it’s Bob trading relationship with Korea than services are one of the key topics concerning can be gleaned from the raw data alone. Hawke with APEC in 1989, or Kevin Rudd the Trade Minister Simon Crean’s visit Speaking with Matt Gurr and Jaewon Rim, with the G20 in 2009, Australia clearly sees to Seoul. According to John Walker at Rio Tinto’s representatives in Seoul, I got Korea as an important economic partner Macquarie Bank, the GFC is giving Korea the feeling that there is some life being and leader in regional economic reform. Ports Daru – new port in the Torres Strait gets PNG go-ahead

By Stuart Ballantyne, managing director of Sea Transport Solutions.

hose of you who have been in Closer to home, in the early 1800s Wellington failed within several years, Hong Kong and Singapore the British government became the Port Essington site was revisited. will see from the plane an interested in establishing a settlement As a result, a first settlement consisted on Australia’s northern coastline in absoluteT plethora of ships of all sizes of 24 houses and a hospital. order to facilitate trade with Asia. In and types, either anchored, being 1824, Port Essington on the Northern While the British government stevedored or transiting those ports. Territory’s Cobourg Peninsula was intended to establish Port Essington proposed as the first such settlement, as a major trading port, along the Both of those successful ports were but was later passed over in favour lines of Singapore, the new settlement established, need I say, by visionary of Fort Dundas on Melville Island suffered from the same adverse Scotsmen as ideal transhipment ports and Fort Wellington at Raffles yBa . conditions that had previously plagued which they continue to be. When both Fort Dundas and Fort Fort Dundas and Fort Wellington.

34 December 2009 The settlement lacked resources and supplies, skilled labour and good housing.

Port Essington suffered cyclones, ship groundings and disease and struggled to attract settlers. The New South Wales government had hoped to establish a direct line of communication with Asia, India and the Pacific, and supported Leichhardt’s expedition, which successfully charted an overland route between Brisbane and Port Essington. Port Essington was still failing to attract settlers, and it was becoming increasingly clear that the settlement was unsustainable.

Finally, in 1849 Port Essington was, like the two previous attempts, abandoned. The demise of the settlement saw the end of British attempts at occupying the north coast. The first permanent settlement was established at Darwin, initially already 6 metres deep, so to take it to 12.5 metres to allow for known as Palmerston, in 1869, but was well off the path of panamax vessels is relatively easy. vessels trading from Asia to the Pacific. The new port will have independent berths for Panamax 173 years and several hub port attempts after Port Essington, and handysize vessels as well as four berths for small bulk in 1997 a proposal to use Mawai Island (also known as feeder vessels. Break bulk cargoes such as laminated timbers, Wednesday Island, adjacent to Thursday Island) as a northern rubber and fish product from the nearby Indonesian port of hub port, was promoted. Merauke will be catered for. The key objective of this project was again to develop a business rapport with Asia and international carriers and import/export agencies that tranship cargoes via Torres Strait, with the aim being to offer them a streamlined service through the ports of Mawai and Brisbane.

But by that date the volume of regulation regarding waterfront infrastructure development in Australia was already daunting. Add to this the fact that the area is remote, expensive to build and without incentives such as tax relief, the place still struggles to attract settlers as Port Essington did. The Mawai proposal died.

Certainly there is even more commercial demand for a transshipment port with 2236 ships transiting the inner route pm grabs and 1010 ships on the outer route of Torres Strait last year.

In a somewhat surprising development, Papua New Guinea’s Sustainable Development Program (SDP) has identified that advert 1/4 there is considerable merit in building a deepwater port.

Daru, the small PNG port in the Western Province, only seven nautical miles from the Australian border, has passed page through a rigorous feasibility study. After geotec samples have been assessed for dredging, it has been decided that the port will go ahead.

The dredge spoil will assist the build up of the shallow area to the east of Daru town for the new port and the area has been declared as a tax free port. An elevated roadway across the shallows will connect the new port to the town and help maintain security for the port.

The existing channel between Bristow Island and Daru is

December 2009 35 Ports

For Australian bulk cargoes from shallow water ports, Daru offers an interesting transhipment port. From Far North Queensland ports to Daru would be around US$12 million cheaper taking 1 million tonnes of bauxite there rather than taking it round to Abbott Point.

Taking it a step further, PNG has a vast supply of energy in terms of hydro-electricity and gas streams, so refining products such as bauxite into aluminium and value adding

A separate area will be built for Navy and Border becomes an economic reality. Eliminating the cumbersome Protection Patrol vessels with 120 metres of quayline. and daunting Australian regulatory and union regimes, Australia and PNG already have joint arrangements with Daru becomes a very interesting proposal indeed. Defence Policy and Border Protection, but a sensible port on the border adds reality to just lip service. SDP should be applauded for its vision, and now that the tender process has just been completed for the With tax free fuel, and a port outside cyclonic weather, construction of this new port, the building of the port is this would seem to be a commercially and operationally close to fruition. Having over 3200 ships passing through attractive transshipment port. the strait every year is a better market than our forefathers For bulk cargoes, the port represents a $5 million saving had in 1824, and only a very small percentage of this traffic in steaming costs for the small Ok Tedi copper feeder will ensure the viability of this exciting new port. vessels in their extra 240 nautical mile leg to Port Moresby *Sea Transport Solutions has provided ship design and while the mothership Erawin languishes there for 8 marine consultancy to 45 countries. STS undertook the months a year. original Daru shipping study five years ago for the NP G Sustainable Development Project.

36 December 2009 Deepest Port in Southern Australia Modern, Reliable Infrastructure Land and Sea Diversification Capability Bulk and Container Handling Facilities Cape Size Berthing and Handling Facilities

For further information contact: Esperance Ports Sea and Land Phone: 08 9072 3333 I Fax: 08 9071 1312 Email: [email protected] Web: www.epsl.com.au

December 2009 37 Legal Damages for late redelivery – clause struck down as penalty Lansat Shipping Co. Limited v Glencore Grain B.V. (the Paragon) [2009] EWCA Civ 855 – Judgment 31 July 2009 By nathan Cecil, senior associate Norton White

his UK Court of Appeal decision clause 101 for the 6.166 days of the 2. In the case of an illegitimate last reaffirms the position of what must overrun and for the 30 day period prior to voyage (which cannot reasonably now be considered a rule of law the latest date for redelivery at the rate of be expected to be completed by inT relation to damages for late redelivery. the difference between the asserted market the last date for redelivery), owners Briefly, the court has again struck down rate (US$46,083.22) and the charter rate have the option to reject the owners’ attempts to claim increased (US$29,500.00). voyage instructions or to accept damages for late delivery and restricted the illegitimate orders and claim owners to claiming the difference between The charterers accepted that the owners damages. In the latter case, the the charter rate and market rate for the were entitled to claim the difference measure of owners’ damages will be period of the overrun. between the market and charter rates the same as for a legitimate voyage, (solely) for the period of the overrun namely, the difference between the Lansat Shipping Co. Limited (the owners) and agreed to accept such liability for charter rate and prevailing market chartered the Paragon to Glencore Grain US$89,560.87. However, the owners rate for the period of the overrun. B.V. (the charterers) by way of amended maintained the claim for damages at the NYPE charter dated 23 November 2006 same rate during the period 30 days prior If the general position prevailed, the for “about minimum 3 to about 5 months to the latest date for redelivery, resulting in owners of the Paragon would be limited (about means +/- 15 days)”. Charter hire a claim for an additional US$471,603.32. to claiming damages during the period was at the rate of US$29,500.00 per day of the overrun only and not also for the pro rata. The charterers sought to set aside clause preceding 30 days. 101 as being an unenforceable penalty. The vessel was delivered at 16:45 GMT By way of interim award, three very The owners put forward an ingenious on 29 November 2006, meaning that the experienced maritime arbitrators accepted submission to the effect that the issuing of latest time for redelivery was 16:45 GMT the charterers’ argument and refused to illegitimate voyage orders by the charterers on 14 May 2007. In the event, the vessel enforce clause 101 on the ground that it amounted to a request to perform a was delivered 6.166 days late at 20.45 was a penalty. The owners appealed to the voyage outside the scope of those in the GMT on 20 May 2007. High Court, which appeal was dismissed. anticipation of the parties at the time The owners then appealed to the Court of of entering into the charter and, absent Clause 101 of the charter provided: Appeal. express agreement as to the rate of hire payable for such an extra-contractual “If…the last voyage will exceed the The Court of Appeal reaffirmed the voyage, the rate of hire should be the maximum period, should the market general principles applicable to claims for market rate for the entire duration of the rise above the Charter Party rate in damages for late redelivery as established illegitimate or extra-contractual voyage. the meantime, it is hereby agreed the in the Dione, the Peonia, the Black Falcon charter hire will be adjusted to reflect the and more recently affirmed in the Achilleas, The court did not accept this argument prevailing market level from the 30th day namely: and held that illegitimate voyage orders prior to the maximum period date until accepted by owners were properly the actual redelivery of the vessel to the 1. In the case of a legitimate last voyage performed under the governing contract Owners.” which nevertheless extends past the and not outside it. In the absence of last date for redelivery, charterers are any enforceable agreement otherwise, The owners claimed that the market rate prima facie in breach of the charter th the general principles prevailed over the on the 30 day prior to the last date for for failure to redeliver on time and owners’ ingenious submission and payment redelivery was US$46,083.22, as opposed the measure of the owners’ damages of hire up to the last date for redelivery to the charter rate of US$29,500.00. is the difference between the charter would be at the charter rate and damages Accordingly, the owners claimed damages rate and prevailing market rate for the for late redelivery for the period of the for late redelivery in accordance with period of the overrun; and overrun would be calculated at the rate

38 December 2009 of the difference between the charter and the sum is extravagant and unconscionable considered by the Court of Appeal, this market rates. or out of all proportion to the loss suffered decision must surely establish (if it was not or the maximum loss that could be expected already so) a rule that the normal measure of In a further effort to overcome the to be suffered. damages for late redelivery is limited to the application of the general principles, the difference between the charter and market owners sought to rely on the provisions In this case, the court held that the owners’ rates for the period of the overrun. Losses of clause 101. The owners argued that the contractual entitlement and continuing giving of illegitimate last voyage orders expectation was to continue to receive suffered after the overrun, such as losses was a breach of the charter and clause (only) the charter hire rate up until the on subsequent fixtures as in the Achilleas, 101 provided for the payment of agreed last day for redelivery – that is, the owners are not ordinarily recoverable. Similarly, in liquidated damages for such breach. cannot reasonably have expected to obtain the absence of an enforceable agreement, any increased hire during the contractual damages are not recoverable for any period The charterers argued that clause 101 was term of the charter. During any overrun, during the currency of the charter up to the By nathan Cecil, senior associate Norton White unenforceable, being a penalty rather than a the owners’ maximum reasonably expected last date for redelivery. genuine pre-estimate of the owners’ loss. loss would be (only) the difference between the charter and market rates during the Parties may nevertheless attempt to agree According to the law of penalties, an overrun. Accordingly, the court found that on a measure of damages payable for amount payable upon breach of a contract the amount stipulated to be paid under late delivery from the time of the giving is only enforceable to the extent that it is clause 101 was not a genuine pre-estimate of illegitimate last voyage orders (as the a genuine pre-estimate of the loss arising of damages for late redelivery. This was also parties sought to do in this case) which is from the breach; that is, an amount designed clearly illustrated by the observation of the properly considered a genuine pre-estimate to compensate the party not in breach. In learned arbitrators that, even if the vessel of loss and not a penalty. However, with contrast, an amount stipulated in terrorem was redelivered 1 hour late, under clause 101 the volatility of market charter rates, parties or for the principal purpose of deterring a the full amount of the owners’ additional may have difficulty in later defending such party from breaking a contract is a penalty claim for US$471,602.32 would be payable! and unenforceable at law. Indicia that a agreed rates as being genuine pre-estimates stipulated amount is a penalty include that Following the pedigree of decisions of damage.

December 2009 39 Maritime safety

How the Scarlett Lucy snatched yachtsmen from the sea

From a special correspondent

n 22 May 2009, the These preparations would prove over the side of the Scarlett Lucy and Australian Maritime instrumental in the rescue of the two secured the man in a leg lock. men who, despite their own efforts Safety Authority’s Rescue Despite the conditions, the crew in attempting to keep Sumatra II OCoordination Centre - Australia member held the man for nearly two afloat, were hampered by not being (RCC Australia) was contacted by minutes before timing his lifting of able to recover pumps dropped by the the United States Coast Guard and the rescued man with rolls of the ship. informed that a 16 metre yacht, overhead Dornier. Debriefs from the crew and the Sumatra II, with two persons on board As the Scarlett Lucy approached, two survivors provided a number had activated its US-registered 406 Sumatra II’s owner (a 72-year-old of learning points arising from this MHz distress beacon. United States former flight surgeon) rescue which are applicable to all and his crew member (a 39-year-old Heading for Wallis and Fortuna mariners: Islands, Sumatra II - a Trintella 53 - New Zealand national) abandoned the swamped yacht, moved into their 1. Preparations by the master. was approximately 350 nautical miles RHIB and closed the distance to Whilst closing the stricken yacht, east of Brisbane, taking on water and Scarlett Lucy. Master Qio conducted practice sinking. RCC Australia made contact approaches and had thus gained via an onboard satellite phone with valuable ship handling practice in the two men. They were advised to heavy weather, and was prepared remain with the yacht as long as to take steps to avoid colliding possible and be prepared to evacuate with the rescue. During the the yacht when required. actual recovery, Scarlett Lucy was A Broadcast to Shipping was experiencing such heavy rolls that issued, with the Fijian-registered the bow thruster was ineffective and crewed merchant vessel Scarlett however the master was still able Lucy responding and diverting to to manoeuvre effectively. The the distress position. The weather master provided detailed graphics conditions in the area were very poor The man was unable however to lift explaining his thought process as with rough seas up to 8 metres and himself completely and fell back he countered the conditions. low visibility. The master of Scarlett into the water. The master of Scarlett 2. Preparations by the crew of the Lucy took the opportunity whilst Lucy demonstrated his grasp of the Scarlett Lucy and Sumatra II prior en route to conduct ship handling conditions and his vessel’s handling to commencing the recovery practice in the heavy conditions and characteristics by applying wheel and operations. The crew members crew briefings. engine orders that moved the man in were briefed on the situation, the water back along the ship’s side to their roles during the intended the boarding net. recovery process and rehearsed The man in the water was able to the throwing and streaming of clutch the boarding net but was life rings. Gear was laid out, deck suffering from exhaustion and unable lights positioned and a recorder to climb the net against the roll of the designated. By recording the ship and the effects of the weather. incident, the Scarlett Lucy was able After some period of hanging from to demonstrate how difficult a the net, one crew member climbed recovery of persons at sea can be.

40 December 2009 Onboard the swamped Sumatra II, the crewman refuelled the RHIB, and started it. When he went to launch, he discovered that the tender was still padlocked and as the saloon was now swamped, was unable to locate the keys. He utilised bolt cutters to free and launch the RHIB. Being able to use the RHIB to close the Scarlett Lucy greatly assisted Master Qio in being able to find a favourable course across the seas and swell. 3. Life rings vs. recovery system. At all times the Fijian crew had two life rings streamed, one in the hands of the man in the water, and one a metre behind so if (and when) he lost grip, there was another life ring trailing near The crew of the scarlett Lucy and at hand. As the yacht owner’s the yacht skipper they rescued physical condition (age coupled with fatigue and prevailing weather Pugh net been available the rescue on this occasion the outcome may have conditions) was approaching a state could have been greatly facilitated. been far less favourable. of complete exhaustion, this was to prove invaluable. The difficulty This incident serves to demonstrate how The footage and debriefs of the incident was experienced in translating an difficult recovering persons in the water have been forwarded to the International exhausted man in a life-ring to a can be. Had one of the survivors been Maritime Organisation Working Group man safely onboard. Had a piece of seriously injured, unconscious or even a dealing with the carriage of life-saving recovery equipment such as the Bill child, under the conditions experienced equipment for consideration.

Contact Bryan Shakey 02 9266 9915 [email protected]

REGISTATIONS CLOSE Friday, 19 Feb 2010 Wednesday, 3 March 2010

Shotgun start at 1 pm A team ambrose event at Roseville Golf Club, Sydney Lunch at noon, Barbarque at 6.30 pm and lots of prizes The scene Shipping Australia has a ball! Two big nights out for Dom and Felicity Figliomeni members in Brisbane and in Sydney

George Tanevski learns to dance

42 March 2009 Geoff and Jill Beesley Greg Nugent, Mark Hulme, Jeff Coleman and John Carew

The shipping industry had two big nights for Russell Stuart and Ian McAlpine members and their partners since the last issue of this magazine. First off the mark was SAL’s NSW branch when more than 200 people danced and dined in The Strangers Dining Room at Parliament House, in Sydney. Andrew Stoner, MP, the state’s shadow minister for Dom and Felicity Figliomeni ports hosted the evening. About the same number of party-goers attended SAL’s Shipping Industry Ball at the Irish Club, in Brisbane. It was the 18th consecutive ball and raised $4900 for the Volunteer Marine Rescue Association to buy new equipment. Ball sponsors included Port of Brisbane, Chalmers Industries, Ace Waste Group, PB Towage, Svitzer Australia, Brisbane Marine Pilots and Austral Asia Line.

Tony Cousins at the the PB Towage table Learning to dance Latin style

March 2009 43 Matthew Robinson and Steve Pelecanos Signal Recent policy developments and industry updates

Republic of Congo, Georgia, Honduras, Truck congestion at Port New arrangements for Lebanon, St Kitts and Nevis, Sao Tome Botany Queensland ports and Sierra Leone. In the second half of October, serious In the middle of this year, along with The vast majority of the world fleet is truck delays were being experienced at other arrangements for the sale of various registered with flag states which take the container terminals at Port Botany, in ports in Queensland, the ports of Hay their responsibilities very seriously. Most particular one terminal that resulted for a Point, Abbot Point and Weipa formed flag states have ratified most of the key period in a restriction on the number of the North Queensland Bulk Ports International Maritime Organisations empty containers that could be received. Corporation with Mackay as a subsidiary. conventions, the adequate enforcement of This involved particular hardship given The port of Townsville now includes which is shown by their port state control this is the peak season for imports and Lucinda and all the remaining northern records. empty containers were urgently required ports that were managed by the Ports The updated table can be downloaded at to be repositioned overseas. We share the Corporation of Queensland were included www.marisec.org/flag-performance. concern of the trucking companies and in a new organisation called the Far North other stakeholders regarding the delays. Queensland Ports Corporation. Payment of AMSA levies It is important that all stakeholders work to improve the operations at the container New passenger gangway by EFT terminals, especially the one most seriously for Sydney Following representations by SAL, the affected. SAL is certainly willing to play its Australian Government has agreed to the Sydney Ports announced on 14 September part in working towards a more productive payment of the AMSA marine navigation the installation of a new state-of-the-art waterfront and sea/land interface. Both levy, marine navigation (regulatory gangway at Circular Quay’s passenger terminals subsequently announced that functions) levy and the protection of the terminal. The $3 million gangway will they will open on Sundays for the receipt sea levy by electronic funds transfer. The improve passenger safety and security and delivery of containers and Sundays Australian Customs and Border Protection ahead of another bumper cruise season for will count towards the three-day free Service requires evidence of payment of Sydney. storage rule. Stakeholders as well as levies prior to giving vessel clearance. These SAL believe that there should have been The new self-supporting gangway will arrangements were also agreed. Payments more extensive consultation prior to the allow for a greater range of heights in can still be made by cheque, if required. announcement and a sufficient lead time disembarking decks at the terminal – A vessel that has disconnected from an to facilitate the adjustment of current critical given the wide range of cruise international voyage will be required to logistical arrangements. vessels visiting Sydney. It will also comply pay future levies in accordance with the with requirements for disabled access and requirements of a coastal trading vessel. Workcover standards. Sydney Ports appoints new Details of the new arrangements can be harbour master Shipping industry updates found at www.amsa.gov.au/levies_and_ In late September, Sydney Ports fees. Corporation welcomed Captain Steven flag state performance Young from Southampton, UK who is the table Long range identification new harbour master for the ports of Port In early October the round table of and tracking of vessels Jackson and Botany. international shipping associations AMSA has also released a useful guide Captain Young is an experienced harbour published their latest Shipping Industry as a high level overview for long range master, having worked at one of the UK’s Flag State Performance Table which is identification and tracking (LRIT). While busiest container ports. He has extensive updated on an annual basis. LRIT can provide security benefits, the experience in navigation safety, vessel case for maritime safety and environmental The table provides a general appreciation traffic services, oil pollution and incident protection has led IMO to include this in of a flag’s performance and encourages management as well as the leadership of the safety chapter of the Safety of Life at ship operators to examine whether a flag strategic port development projects. Sea Convention (Chapter V). AMSA has has substance before using it. The list of already implemented LRIT and recognises SAL welcomes Captain Young and looks the very worst performing flags includes the technical challenges involved. forward to working closely with him in his Albania, Bolivia, Cambodia, Columbia, new role. Costa Rica, Cote d’Ivoire, Democratic Further details can be found on the

44 December 2009 March 2009 45 Signal

AMSA LRIT web portal on the AMSA to Robert Dick – tel 02 9266 9916, RADM Thomas concluded by website, www.amsa.gov.au. fax 02 9268 0230 and email rdick@ highlighting that “the program will shippingaustralia.com.au. continue to foster mutual cooperative efforts between Navy and the maritime SAL training program Further news on training is available on industry”. He further emphasised that the SAL website www.shippingaustralia. The decline in the number of people “there is considerable importance placed com.au. enrolling in SAL courses in 2009 on defence-maritime industry relations reflected the difficult trading conditions and the development of opportunities that the shipping industry worldwide is Deputy chief launches for further enhancing mutually beneficial experiencing. This was to be expected. cooperation”. Nevertheless some companies saw this as cooperative initiative an opportunity for employees to update between Navy and the The launch of the program also dovetailed their skills by getting to know more about with the ministerial announcement in the industry that they work in and taking maritime industry November 2008 concerning the agreement up training options provided by the SAL At a meeting of the Australian Maritime for the mutual recognition of Navy and courses. Defence Council this year hosted by civilian maritime qualifications. Much has been said about the economic Thales at their Garden Island office the The RAN–Maritime Industry recovery that will come and what it will deputy chief of Navy, Rear Admiral Familiarisation program has received mean for Australia. One thing for certain Davyd Thomas RAN, launched the enthusiastic support from the maritime is that our seaborne trade will increase RAN–Maritime Industry Familiarisation industry organisations in Australia significantly as a result and that means Program. including Ports Australia, the Australian companies will need to employ more During his speech RADM Thomas Shipowners Association, Shipping staff to be able to provide the services for indicated that “this program provides a Australia Limited and the Maritime shipping. An introduction to the industry unique opportunity for Defence personnel Union of Australia. Representatives of will therefore become an essential step for to experience sea familiarisation in each of these organisations were present at new employees in developing skills and commercial ships and gain an increased the launch. Those present have pledged to industry knowledge to more effectively do understanding of the complexities of encourage representatives from their industry their job and this is where SAL training a working commercial port. It will sectors to participate in the program. comes in. also enable industry representatives to Details will be available soon as to how The online course Introduction to Shipping experience life at sea in an operational industry members can apply to experience is a basic course that can be combined warship as well as gaining a detailed life at sea in an operational warship. with a company induction program or understanding of the numerous shore- Those interested should contact Llew be completed on its own. E-learning is based functions that form an integral part Russell, chief executive officer at Shipping a convenient training method providing of the daily roles of Navy and Defence”. Australia on 02 9266 9903. flexibility in completion, recognition for successful completion and, most importantly, the beginning of establishing a basic knowledge of shipping. To take that learning process further or to update current shipping knowledge, the face-to-face course Introduction to the Maritime Industry will increase the depth of that knowledge. In 2010 SAL is planning to continue to offer that course with the possibility of a new presentation format, if there is sufficient demand for such courses. Other courses – Reefer Cargo Handling and Introduction to Chartering - are still available, subject to demand, and these courses as well as Introduction to the Maritime Industry can all be presented in- house if that is preferred. All courses are competitively priced and include discounts for bulk purchases for From the left: Commander Paul Taylor (program coordinator); Teresa Hatch, executive director the on-line course and discounted fees for of the Australian Shipowners Association; Rear Admiral Davyd Thomas, deputy chief of Navy; group bookings for other courses. Llew Russell, chief executive officer of Shipping Australia Limited, David Anderson, chief executive officer of Ports Australia and Rod Pickette, policy executive officer of the Maritime Please direct any queries on training Union of Australia.

46 December 2009 Pac2010 TV shipping australia 9/11/09 3:04 PM Page 1

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New career course: A glimpse into one of its modules

SAL’s new e-learning course Introduction to Shipping continues to attract students wanting to enhance their careers in the maritime authority. An extract from the course, written by SAL’s education officer, Robert Dick, appears below. Readers can register now at www.shippingaustralia.com.au or www.iwgq.com.au. Ship operations and port infrastructure While the transfer of cargo – loading and Read the question below and then select the response you discharging of ships - is the primary function of think is correct, then press the Submit button. the port, there is another function that the port performs and that is in relation to its also being a harbour. That also requires infrastructure of other types than those associated with cargo handling. As a harbour the port has to be a place where a Question ship can safely enter, where it will be reasonably In some ports it is necessary to regularly protected from the elements of the open sea and undertake dredging using specialised other extreme weather conditions. vessels, to ensure that there is sufficient depth of water available in channels and in the harbour generally. Who would you nominate as the organisation usually responsible for this?

Allowance is made for tidal variations and sufficient depth of water available in approach channels, in answer the port itself and at the berth that the ship will occupy. Navigation aides in the form of beacons The stevedoring industry and channel markers and radio communications with port authority traffic control will all contribute The port authority to safe port operations. These mostly are the The towage company responsibility of the port authority. In addition to these facilities, port services we identified earlier – pilotage, tugs and linehandling - submit reset should be included as part of port infrastructure as they are required to make the port operate.

48 December 2009