An Australian Rail Track Authority line through the outback March2009 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 Economic uncertainty our main challenge www.shippingaustralia.com.au 4 Viewpoint PubliShed for ShiPPing auSTralia PTy Ltd Being part of the solution, not the problem 6 Profile Grant Gilfillan, CEO Sydney Ports Showcase Publications P/L 8 Retrospect 26 Belmore Street, Surry Hills NSW 2010 Are our backs to the wall or are we Ph: (02) 9211 7422 Fax: (02) 9211 9061 luckier than ever? www.showcasepublications.com.au Director: Roger Conway 14 Railways feature 14 Rail Track chief tells it as he sees it ediTorial 18 Port Melbourne link almost complete Executive editor - Llew Russell 19 Work begins on Macarthur corridor Feature writer - Archie Bayvel 20 FreightLink latest 21 The private lines AdvertiSiNg Co-oRDinatoR For Advertising in the next issue 22 Shipping and greenhouse Call: Steve Moxey Ph: (02) 9211 7422 Email: [email protected] 26 Agents’ key changes by Ken Fitzpatrick ProducTion Manager and deSign 30 Coastal shipping parliamentary report Paul Ortiz-Gomez Ph: (02) 9211 7422 32 NZ’s new coastal services Email: [email protected] 34 Break bulk and windmills adMiniSTraTion by Alan McDermid Sarah Abrahams Ph: (02) 9211 7422 Email: [email protected] 36 Containers’ 40th anniversary We kindly ask all readers to notify the advertisers that you saw their 38 The ubiquitous box advertisement in Shipping Australia, as it is only by their willing participation that this publication is available to you. We recommend that you use the advertisers wherever possible. 40 Signal Disclaimer. Readers are advised that Shipping Australia Limited Industry updates and the Publisher cannot be held responsible for the accuracy of statements made in advertising and editorial, nor the quality of the 42 Training goods or services advertised. Opinions expressed throughout the publication are the contributors own and do not necessarily reflect the views or policy of Shipping Australia Limited or the Publisher. 43 Letters to the editor While every reasonable effort has been taken to ensure the accuracy of the information contained in this publication, the publisher takes 44 SAL Annual Report 2008 no responsibility for those relying on the information The Publisher 45 Full contents list and Shipping Australia Limited disclaims all responsibility for any loss or damage suffered by readers or third parties in connection with the information contained in this publication. 184 Advertiser’s list Warranty and indemnity: ADVERTISERS and/or advertising agencies upon and by lodging material with the Publisher Showcase Publications for publication or authorising or approving of the publication of any material indemnify the Shipping Australia the Publisher, its servants and agents, against all liability claims or proceedings whatsoever arising from the publication and without limiting the generality of the foregoing to indemnify each of them in relation to defamation, slander of title, breach of copyright, infringement of trademarks or names of publication titles, unfair Cover pictures: 1. An ore train competition or trade practices, royalties or violation of rights or on Fortescue’s line through the privacy regulations and that its publication will not give rise to any Pilbara; 2. Grant Gilfillan; 3. rights against or liabilities in the Publisher, its servants or agents 1 2 3 Anthony Albanese; 4. Michael and in particular, that othing therein is capable of being misleading Carmody; 5. David Marchant. or deception or otherwise in breach of Part V of the Trade 4 5 Practices Act 1974. Announcements from the bridge by Llew Russell Economic uncertainty: The main challenge to be faced in 2009 learly the rollercoaster ride we charters but using their own vessels and Association of Australia New Zealand experienced in the latter part cooperating and coordinating their services conference in November last year which of 2008 as a result of the global even more closely with those of other lines. sets out many of the problems that Cfinancial crisis is going to continue this It is interesting to note that the EU shipping agents face. year and regrettably for some time. In my took a historic decision to withdraw the In order to cope with the long term view it is vital that this year the maritime exemption for liner shipping conferences growth for inter-city freight in Australia, industry in Australia becomes more from 1 October last year. Unlike the it is essential that more freight is carried united in meeting the challenges that this situation in Australia, Europe has a on rail and a number of State governments economic crisis presents. different regulatory regime applicable to have set percentage targets in terms of We must seek ways and means of consortia. In Australia, it is all covered by transferring freight from road to rail. Our achieving an unprecedented level of one regulatory regime under Part X of the special feature in this edition relates to the cooperation and coordination between all TPA. The EU is currently conducting a rail freight industry in Australia, where the those associations that have a stake in the review of that consortia regulation which gaps are and its likely long term future. maritime industry as well as facilitating expires in 2010. We are pleased to be able to profile Grant Australia’s overseas trade. By working This year we celebrate the 40th anniversary Gilfillan who was appointed CEO of more closely together we have a chance of the introduction of containerisation to Sydney Ports Corporation and with the to collectively find solutions to enhancing the Australian international liner trades. release of the government’s white paper on the performance of our supply chains, World trade would not have grown as the carbon pollution reduction scheme, it reducing the potential for congestion in rapidly over the past 40 years without the is most opportune for us to examine the our ports and providing more coordinated advent of containerisation. Equally, of possible impact of this white paper on the recommendations to government and course, with the downturn in global trade maritime industry. government agencies on much-needed it impacts rapidly in terms of lowering the In Retrospect, Archie Bayvel presents new infrastructure and increased demand for container shipping services. contrarian views to those of some daily utilisation of existing infrastructure. 2008 was a year of submissions. It is hoped media on the global financial crisis’ impact A more unified approach will also assist that 2009 will be a year when substantive on Australia. He revisits on-the-ground us in dealing with border agencies and decisions and actions are taken. executives whom he met during his travels and reports their views on their current I was indeed pleased in 2008 to see the 2009 has begun with requests for situation. My own view is that there is Office of Transport Security, relevant areas submissions covering the review of no suggestion that Australia is immune of the Australian Quarantine Inspection the future of the National Transport from the effects of the global downturn, to Service, Customs and the Department Commission, a review of the regulation the contrary, but rather the impact varies of Immigration and Citizenship joining of Victorian ports, an annual review of depending on individual sectors of the together to find the best practical methods regulatory burdens on business by the economy and the length of the downturn. of enhancing security relating to cruise Productivity Commission, input into Undeniably, Australia is better placed than vessels. The Australian Maritime Safety the economic framework for an efficient many countries to weather this financial Authority would also benefit from a more transport marketplace being considered by tsunami. unified and coordinated industry voice. the Ministerial Taskforce established under Regular readers of this magazine will the National Transport Policy Framework The article reminds me of a story that, in be aware that many international that is being progressed by the Australian my view, applies to certain sections of our liner shipping operators are parties to Transport Council, and comments have media: ‘Facts, truth and fantasy went on agreements that are registered under the been provided on the NSW Opposition’s a long and arduous journey but only the Australian Trade Practices Act which paper on “Planning for Prosperity: exploits of fantasy were reported upon by gives them limited exemption from our Economic and Fiscal Priorities”. A long the general media’. anti-trust laws in order to provide the level list indeed. To say that 2009 is going to be a of services required by container exporters Similar to the past two years, we have challenging year for our industry and SAL and importers in Australia. There is now an adopted the format of having our quarterly would be an understatement. However, urgent need for those operators to consider magazine as well as the annual in the may the forecasts of continuing economic rationalisation of services to increase March edition. Also in this edition of the gloom be as accurate as those forecasts that vessel utilisation in order to reduce magazine we have an extract of an address anticipated the boom continuing on for OOCL Australia operating costs if possible by not renewing by Ken Fitzpatrick to the Maritime Law many years to come. 2 March 2009 Celebrating 20 years in Australia Viewpoint Shipowners want to be part of the solution, not the problem Photo: long sigh escaped the lips of the stevedoring companies for the provision Tribunal of New South Wales found in its Sydney Ports truck driver as he looked at his of services, they do not set out operating review on improving landside efficiency watch and realised that he had procedures in terms of yard versus berth at Port Botany, less than a third of bulk Abeen waiting four hours and still was not priorities.