8 36
Contents Autumn 2012 30
2 Announcements from the bridge 32 state happenings the good, the bad and the indifferent 4 Viewpoint Shipowners neither cash cows nor tax collectors 34 DAFF - biosecurity AQIS changes its name 6 Profile maurice James, Qube Logistics 36 CRUISING 8 olympic dam AND THE ARCHIPELAGO 40 education and training oF DREAMS SAL launches new e-learning course 8 the mine 42 tHE SCENE 12 What makes a remote mining township tick? 16 Here’s what it will take to build a dream 44 signal 20 Retrospective New president for APSA 26 AGRICULtural commodities Falling prices and heightened volatility expected
28 ACCIDent prevention 46 Annual review 2011 28 OHS performance in our shipping industry 30 Container weighing gains support 144 ADVertisers’ list
THE OFFICIAL JOURNAL OF Shipping Australia Ltd Level 1, 101 Sussex Street, Sydney NSW 2000 AUSTRALIA 1. The Olympic Dam pit-head PO Box Q388 Sydney NSW 1230 P: 02 9266 9911 F: 02 9279 1471 2. Maurice James W: www.shippingaustralia.com.au Qube Logistics PUBLISHED FOR SHIPPING AUSTRALIA LTD BY Showcase Publications Pty Ltd 3. Brett Jardine C5, 99 Jones Street (Dalgety Square), Ultimo NSW 2007 1 International Cruise Council Australasia PO Box 665, Broadway NSW 2007 P: 02 9211 7422 F: 02 9211 9061 W: www.showcasepublications.com.au 4. Bill Boehm 2 3 4 Administrator of Roxby Downs Editorial Executive editor: Llew Russell Feature writer: Archie Bayvel
Advertising Co-ordinator For advertising in the next issue contact Steve Moxey P: 02 9211 7422 E: [email protected]
Graphic designer Sarah Abrahams E: [email protected] Autumn 2012 I Shipping Australia Limited 1 • togetherness • Consistency • Productivity improvements It is essential that all stakeholders become involved in tackling supply chain problems and obstacles to ensure that costs and other inefficiencies are not simply being passed down the chain rather than being addressed head on. In the past, this has definitely been the case with a number of issues including proposals to increase the efficiency and productivity of the operation of empty container parks and other issues associated with the sea land interface. It also impacts on infrastructure issues such as the building of weigh-in-motion systems in container terminals for weighing import containers. SAL this year will increase its efforts to foster and encourage a greater collective approach to dealing with these issues. A mantra of SAL members is the adoption of international standards on a national basis or, at the very least, the adoption by state and territory jurisdictions of national standards. There are a number of areas that will continue to be addressed this year such as biofouling of hulls, dealing with the on-board treatment of ballast water, more broadly the regulatory activities of our border agencies, which should all be applied on a more nationally consistent basis. SAL continues to work with government departments and government agencies to achieve that result. There was a lot of debate at the beginning of this year in the media regarding the review of the Fair Work Act and the fact that productivity was not specifically included in the terms of reference for that review. Furthermore, in recent industrial disputation on the waterfront the question of productivity improvements to offset some of the increases in wages and conditions was a bone of contention between the union and the employer. Workplace relations are only part of the productivity continuum, albeit an important part, and a more holistic approach is required involving investment, infrastructure and development generally, even extending to training and education in terms of Announcements raising the overall productivity platform in Australia. This is essential if we are to become more internationally competitive and if we are to achieve the economic from the Bridge development in this country that is necessary to raise our standards of living. In this edition, we include our annual review and whilst, as mentioned above, it y the time you receive this magazine, we will be almost was a very difficult and challenging year, through the first quarter of 2012. I would hope for all our a number of important achievements readers that 2012 is turning out better than 2011 which can be identified. We completed B the intermodal terminal study in the was a very difficult year for our members in many respects. We metropolitan areas of Sydney and propose this year to be more proactive in pursuing three themes: Melbourne which was undertaken by
2 Shipping Australia Limited I Autumn 2012 a Masters graduate from the Institute the end of last year. As a result of the involved in the container stevedoring of Transport and Logistics Studies at study, SAL is hopeful that taskforces industry. They are on the expansion Sydney University. Copies of that report can be established in both Sydney and and acquisition trail. We are grateful for were circulated at the end of January. Melbourne to work out a strategy on how Maurice James’ agreement to speak to The major message in that study, is that to make these intermodal terminals work us on those plans. simply adopting the “build it and they will to optimal capacity. come” approach is not going to optimise Last year, the International Association of the utilisation of the inland port concept In other achievements, in 2011 Shipping Ports and Harbors joined with the World in achieving greater freight carriage on Australia was pleased to have hosted Shipping Council, International Chamber rail compared to road. An increase in an international conference in October of Shipping and BIMCO in an effort to the carriage of freight on rail is being of 82 delegates from 28 countries, all encourage the International Maritime promoted by the New South Wales and members of the Federation of National Organisation to amend the Safety Of Associations of Shipbrokers and Agents Victorian Governments. Life At Sea Convention to require, as a and the week-long meeting had a very condition for stowing a loaded container The Enfield Intermodal Logistics Centre extensive agenda and there was also a on-board a ship, that the ship and the is currently being built and Infrastructure comprehensive social programme. NSW is pushing the federal government port facility have verified the actual to transfer defence land to facilitate the It is pleasing to report that Young weight of the container. In September building of an intermodal terminal at Shipping Australia is very active in both 2012, the IMO’s Dangerous Goods, Solid Moorebank as soon as practicable. One NSW and Victoria. We were also able to Cargoes and Containers Sub-Committee reason is that the terminal would help progress the more advanced e-learning will consider this requirement. SAL is maximise the price when Port Botany course entitled Fundamentals of the strongly supportive of this development is privatised (on the basis of a 99-year Maritime Industry. This will complement and is seeking to assist the World lease) in mid 2013. our current e-learning course Shipping Council in providing case SAL is highly supportive of the benefits Introduction to Shipping. studies of overloaded containers and that these intermodal terminals in our In December last year, the Victorian mis-declared weights in containers which major metropolitan centres can bring to Government introduced into their can also impose problems in the supply bear on reducing the serious congestion parliament a Bill that provides for a port chain by affecting safety on-board ships, as our container terminals struggle to licence fee for the Port of Melbourne safety in the handling of containers in meet forecast demand in the future. Corporation to raise $75 million in the ports and safety on our roads. financial year 2012/13 with the objective A great deal of work needs to be With the introduction into Parliament of of raising $1 billion over a 10 year period. undertaken to optimise their utilisation, legislation for Australia last year to ratify particularly in terms of the pricing and The Port of Melbourne Corporation the Maritime Labour Convention which efficiency of rail vs road, at least as far in January requested stakeholders is expected to enter into force this year, as Sydney is concerned. A fully utilised to consider their proposals to meet Enfield should be able to take 120,000 this objective and SAL remains totally there is increased focus on the welfare truck trips off the roads and there are opposed to the concept of taxing the of crew and this includes safety aspects media reports that Moorebank could supply chain and to spreading the and how to avoid injuries at sea or take up to 1 million trucks a year off the burden across all users of the port. This working cargo on land and the Seacare M5 motorway. is the subject of our Viewpoint article. Authority addresses these issues in an article in this edition. Infrastructure NSW has not consulted BHP Billiton’s Olympic Dam mine goes the shipping industry on how all far beyond the export of uranium and our In the Scene we cover the New South stakeholders can work together to feature writer, Archie Bayvel, visited the Wales State Committee Christmas commercially promote the use of these region and called it The Archipelago of luncheon at the end of November last inland ports in Sydney and Melbourne, Dreams. year as well as the SAL golf day which and eventually Fremantle, to achieve was held on 7 March this year. their potential. Brisbane at its Fisherman At the end of last year, the Adelaide Islands facilities does not have the same to Darwin rail link was washed out at Clearly, 2012 is going to be not only problems as other capital cities regarding Edith River, just north of Katherine, and challenging but also present many this issue and it will be some time before Archie followed up on the effect of the opportunities for the industry to advance Adelaide needs to address this issue. temporary interruption of this important its interests. Hopefully, this time next transport link through the middle of year we will look at 2012 as being a If the intermodal terminals were Australia. operating at full capacity, the New South watershed year which has resulted in Wales Government could in fact achieve Our profile is on Maurice James, who is significant productivity improvements, around 40 per cent of the freight being the managing director of Qube Logistics. more consistent application of carried on rail to and from Port Botany Qube is increasingly becoming a major regulations nationally, and a more rather than lowering that objective to force in container supply chains and in collective and united approach in 28 per cent which they did towards general stevedoring short of being tackling supply chain problems.
Disclaimer: Readers are advised that Shipping Australia Limited and the Publisher cannot be held responsible for the accuracy of statements made in advertising and editorial, nor the quality of the goods or services advertised. Opinions expressed throughout the publication are the contributors own and do not necessarily reflect the views or policy of Shipping Australia Limited or the Publisher. While every reasonable effort has been taken to ensure the accuracy of the information contained in this publication, the publisher takes no responsibility for those relying on the information The Publisher 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. 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 Shipping Australia, the Publisher, its servants and agents, against all liability claims or proceedings whatsoever arising from the publication and without limiting the generality of the foregoing to indemnify each of them in relation to defamation, slander of title, breach of copyright, infringement of trademarks or names of publication titles, unfair competition or trade practices, royalties or violation of rights or privacy regulations and that its publication will not give rise to any rights against or liabilities in the Publisher, its servants or agents and in particular, that nothing therein is capable of being misleading or deception or otherwise in breach of Part V of the Competition and Consumer Act, 2010 (Cth).
Autumn 2012 I Shipping Australia Limited 3 Governments should not treat shipowners as cash cows and tax collectors
iven the Victorian Government’s It is also essential that this new impost rail connections to and from the port. determination to raise $1 not be integrated into the general Furthermore, the trucking industry Gbillion extra from the Port of charges of the PoMC which they have serving the Port of Melbourne has gone Melbourne Corporation (PoMC) over advised will increase not only by the from an estimated additional charge 10 years to initially support delivery of annual CPI but by an additional 1.5 per of around $160 per truck to access the Government’s objectives, which are cent. SAL is strongly recommending the port to no contribution at all to this vaguely mentioned as infrastructure to PoMC that a special account be proposed tax. projects, it is surprising that there is no created for the application of the port If the Government insists that PoMC mention of the funds being spent on the licence fee which can be audited by must meet this obligation, then SAL port or on connections to and from the the Essential Services Commission will be urging the port corporation to port. of Victoria to ensure there is no over- recover the funds through wharfage on recovery of funds and that the CPI This effective tax on trade is poor full containers and other commodities applies in future and not any additional public policy and is simply wrong on all related to international trade. It has to charges. counts. Shipowners should not be tax be recognised that eventually importers collectors for the Victorian Government. SAL urged the previous government, and exporters in Victoria will have to Raising taxes by taxing the supply chain which was looking at applying a freight pay this additional is a costly, inefficient and burdensome infrastructure charge on trucks impost and a way of raising taxes for infrastructure. It accessing the port, simpler way would is administratively costly because as the that if it be to recover it charges pass down the chain, there are through wharfage additional administrative on full containers costs which which will meet need to be the Victorian recovered. Government’s professed If the Victorian objective that the port Government was licence fee be relatively cheap to unhappy with the implement and efficient to administer. dividends paid by the PoMC then Importantly, there is no link between proceeded, it was essential that they should have VIEWPOINTthis proposed fee and any specific a special government account be raised their dividend cost elements and no incentive to established to receive these funds requirement rather than applying a increase productivity in the port. which would then be directed to charge which is proposed to raise There is no specified date in the Bill infrastructure projects directly benefiting $75 million in its first year, 2012/13. before the Victorian Parliament for the port. Equally, we will be urging the In fact, SAL calculations based on the tax to be withdrawn. This is a current Victorian Government not to put the information provided by PoMC recipe for complacency due to lack of these funds into consolidated revenue shows that they would be raising a transparency in the process and the but into a special account. much higher level of revenue than $75 inability to link to productivity gains. million even in the first year. Whilst we It is also not clear why other ports in We would urge the PoMC/Victorian have had to make some assumptions Victoria are not contributing to the Government to re-structure and which we are happy for the PoMC to billion-dollar fund for infrastructure implement the tax to drive behavioural challenge, our calculations show over which presumably could be spent change and promote efficiency. This $81 million will be raised in the first anywhere in Victoria. Geelong, Portland could be achieved by charging the year. This raises the question of how and Hastings could contribute, users that will benefit from the expected over-recoveries of the tax because of lessening the size of the impact on the upgrade in land transport infrastructure trade growth exceeding forecasts will Port of Melbourne’s charges. supporting the Port of Melbourne, i.e. be treated! In SAL’s view, the freight and the logistics companies, trucking and Melbourne is Australia’s largest infrastructure charge was as wrong as rail service providers. The tax could be container port but now it will be is the port licence fee. Two wrongs do lower for service providers accessing the most costly for port users. An not make a right and SAL will urge the the port after business hours, double unenviable reputation which will Victorian Government to withdraw its handling containers by trucks and impact severely on the international legislation and remove this proposed discounts for increased rail freight competitiveness of Victoria’s exporters tax on trade. Alternatively, it should taking trucks off the roads etc. and importers. There are broader ring fence these funds to ensure they Such changes in behaviour would at effects too, for example, reduced are purely spent on infrastructure least be identifiable benefits arising tourism as a result of taxing passengers and developments within the Port of from this tax! on visiting cruise vessels. Melbourne or improving the road and
4 Shipping Australia Limited I Autumn 2012 Autumn 2012 I Shipping Australia Limited 5 Maurice James, managing director Profile Qube Logistics He’s referring to events at Port Kembla a few months ago when Qube helicoptered staff into the port to by-pass strikers’ picket lines and the press harped gleefully back to how Corrigan fixed his difficulties with the unions. James downplays the Port Kembla incident as simply a strategy to bring company staff into the port at a time when it was strike-bound. “There were union pickets on the gates and we didn’t want our staff to be the focus of demonstrations so we flew them in,” he says. “Media reportage of the incident tended to see it as some sort of master stroke by our chairman but in fact Chris Corrigan is not involved day-to-day in Qube’s business and all the decisions are made at our corporate head office here in Sydney.” Not, mind you, that Corrigan’s physical presence is necessary. His thinking must be hard-wired deep in the cerebral lobes of James and Qube’s 100 other employees who worked for Corrigan over the years. He joined Patrick in 1994 as its Victoria manager and terminal manager at East Swanson and stayed there for 12 years until 2006 and the takeover by Toll. By then Maurice was Patrick’s director of operations with responsibility for all its container terminals and logistic businesses and sat on the company’s board. “My time at Patrick was unforgettable,” he says. “We built a really good business through hard work, long hours, and investing for growth. The people were great, Chris Corrigan was great ... It was a fantastic part of my career. No corner for a “In 1994 Patrick was capitalised at $200 million. In 2006 it was sold to Toll for $6 billion.” Svengali in this If his time at Patrick was unforgettable, events that went before set the scene for what at 55 has become a most successful Qube! career. Melbourne born and bred, James’ father was a toolmaker, his mother a mum and he was educated at Oakleigh Technical School and Caulfield Institute of Technology, now ne point on which Maurice James is Monash University, from which he particularly emphatic is that Chris Corrigan graduated as a civil engineer. Odoes NOT interfere in Qube’s management “Right from my primary school days I despite the media’s fascination with the idea that he wanted to be an engineer or a builder and Oakleigh Tech gave me the right plays a Svengali role in the company’s management background to make that come true,” from his faraway eyrie in Switzerland. he says.
6 Shipping Australia Limited I Autumn 2012 “I began work in 1979 as a graduate in September 2011 and Maurice was team works well; some of us have civil engineer with the Port of appointed managing director. known each other for many years Melbourne and spent 15 years from the Patrick days. Today Qube’s corporate office is in there during which I graduated with Sydney but Maurice also works out “My strengths are managing people an MBA from Monash University, of its office in Melbourne where his with different backgrounds and ending up as the port’s manager of home is. He shares his time between the fact that I’ve got a very good commercial operations. I worked there and Sydney. understanding of the ports business. on the planning, design and construction/project management of Leadership of Qube is a new role for “Two areas of special interest are our port infrastructure, planning of the him and he’s taking a new view of the NSW terminals at Moorebank and at company’s future direction. “We want port’s relocation from the Docklands Minto. Currently these properties are to grow,’ he says, “and we see lots and the port’s vacation of the area rented to other businesses while we of opportunity in the import-export to move to its present location go through the planning and approval area where people have not focussed downriver. I was also responsible for process to develop them. before. Its markets have traditionally the port’s property portfolio and the been fragmented with multiple “We want to create an intermodal privatisation of Swanson Dock. players competing against each other port-rail terminal at Moorebank, an “My port authority years were a with historically low margins. We want 80-hectare site in south-west Sydney great grounding. They gave me an to create economies of scale. that is owned 30 per cent by us, 55 per cent by Stockland, and 15 per appreciation of business, investment “For the past 10 years ports have cent by QR. decisions, and an understanding of traditionally focussed on waterfront infrastructure.” and stevedoring industries. Our next “Qube will continue to grow focus is on how we move goods in In 2006, with Patrick sold and after organically and through acquisitions and out of the ports. rejecting a job offer with the new and investment in new projects. The owners, Maurice had a year off from “It involves enormous issues because mining space is one example that we executive life then went to work the ports will grow only if it can be looked at and as a result have, for with Sam Kaplan, of Kaplan Funds demonstrated that cargo can be example, established a completely Management. Back in 1997 Kaplan moved in and out with adequate new business at Utah Point, Port Hedland with a bulk receival, storage and Chris Corrigan had set up a new community and commercial and out-loading infrastructure for mid fund to purchase logistics businesses acceptance. tier miners. It’s a multi-user facility. which was KFM Infrastructure and “My job is to drive this growth. Logistics Fund. It was rebranded Relationships are a very important “Our figures speak for themselves. as Qube in September 2010 and part of this business – you need to Qube was capitalised at around $200 corporatized with its own board and have the confidence of the people million when launched in 2007; today internal management appointed you work with. Qube’s management it is around $1.3 billion!”
Qube’s new terminal at Utah Point, Port Hedland Autumn 2012 I Shipping Australia Limited 7 Olympic Dam
The Olympic Dam Show, behind-the-scenes of the world’s biggest mine In this Archipelago Of Dreams only Truman is missing
By ARCHIE BAYVEL, at Roxby Downs, South Australia
HEY form a little archipelago of minutes’ drive from the security fence and But no babies are born in Roxby Downs dreams, the motley collection of check-point that guards entry to the vast and its cemetery is empty. You get that Ttiny towns and hamlets that sit atop BHP Billiton mine they call Olympic Dam. pregnant or that sick and the ultimate Earth’s greatest deposit of nuclear fuel meaning of fly in:fly out becomes brutally and copper to say nothing of gold and Roxby Downs is the archipelago’s ground apparent. silver in quantities that make Ali Baba’s zero with almost all its 4500 residents cave seem no more than storage space being workers and their families employed It’s a flash of reality, shared by other for big jars. at the mine. Population is scheduled to towns in the archipelago, that is double within the next seven years. slightly reminiscent of Jim Carrey’s role They are Roxby Downs, Olympic Dam, in The Truman Show, a 1998 satirical Hiltara, Andamooka, Woomera, and It’s a model town built and owned by the movie in which Truman Burbank’s Pimba. mine to house its core workers. Oddly entire life is very different from what he for a desert settlement, it has plenty of thinks it is. He’s happy and completely It’s red semi-desert country fringing water and its streets are fringed in green unaware that his life’s focus is actually the great salt Lake Torrens some 550 while comfortable houses and a civic a reality TV show aired since his birth kilometres north of Adelaide and 10 centre nestle among its plentiful trees. and of which he is the unwitting star. Its residents are more than prosperous Everyone else, including his wife, is by city standards although not so a paid actor. All goes well until he ludicrously rich as their counterparts decides to go see the world ... and in the Pilbara. It also has a modern something happens. hospital and spacious cemetery.
Warning signage at the beginning of the Oodnadatta track just 8 Shipping Australia Limited I Autumn 2012 outside Roxby Downs Part of the Olympic Dam mine site. Photo: BHP Billiton
Andamooka, an opal town for this 80 leading to Perth, t’other linking Adelaide Services employed to keep the town years past, is a shambolic settlement and Darwin. One of the preliminaries spick and span, ready for almost instant 70 kilometres up the track from Roxby. to Olympic Dam’s big leap forward is population. Its maze of nameless streets wend construction of a rail link from the mine through piles of cream-colored mullock, to the great north line that will carry its But the ghost will walk again. It’s just abandoned machinery, wattle-and-daub billions of dollars-worth of ore to Darwin a matter of time before Roxby Downs’ shanties, and modern mini-mansions. Its for export through its port at East Arm. acute housing shortage has workers who 400-or-so denizens have no running water, As for Woomera, about 100 kilometres are prepared to drive 50 minutes each sewage, or local government. Surrounded down the track from Roxby Downs, it’s way to work every day eyeing Woomera’s by vast cream-colored slag heaps it the rocket town that put Australia into vacant homes. And a little known fact is seems inevitable that it will soon become the space age. For a while. Today it’s a that Woomera sits near its own massive another dormitory for Olympic Dam’s mine ghost town, its 6000 scientists, rocket mineral deposits at Carrapateena that workers. technicians, American airmen, imprisoned could someday rival those of Olympic Andamooka’s cemetery is well populated, illegal immigrants and their dependents Dam. many of its denizens appearing to have long gone. In their place are just 147 lived in this ridiculous place all their residents most of whom are Federal So what’s it all about, this strange and working lives, scrabbling for opal and Government contractors from Transfield remote archipelago of dreams? many dwelling in structures that would be rejected as henhouses anywhere else. Until recently it also had a brothel but the Andamookies, with 3000 single men only 45 minutes’ drive away, didn’t recognise a good thing when they saw it and ran The Mine... its bikie proprietors and their girls out of town. Olympic Dam is by far the world’s largest uranium deposit and the world’s fourth- largest copper lode. It produces highly refined copper cathodes, gold and silver Hiltara, closer to the actual mine, doesn’t ingots, and uranium yellowcake from its existing underground operation. The current exist yet but when it does it will come proposed expansion alone will take 11 years although the deposit is so much larger with a rush that brings 10,000 mine and than that it has a possible lifetime of centuries. Current quoted life expectancy is construction workers, prefab housing around 60 years. for them and a ready-to-click-together shopping centre. It will be a temporary The new open pit will eventually consume the existing underground mine with its miles of tunnels, caverns, and shafts. When complete it will be a kilometre deep and town specifically to house those involved have an area bigger than the city of Adelaide. in the construction stages of the mine’s expansion. The ore deposit was discovered by Western Mining Corporation in 1975 near Roxby Downs sheep station and took its name from a stock watering hole which was known Pimba is a speck settlement currently as the Olympic to commemorate the 1956 Melbourne Olympics. It now belongs to of around 50 people about 10 minutes’ BHP Billiton, which acquired WMC in 2005. drive from Woomera and at the junction of the two transcontinental rail lines, one
Autumn 2012 I Shipping Australia Limited 9 So it seems fair enough to wonder which of Olympic Dam’s products is going to be the main earner? The prime answer is uranium to service growing world demand for energy whose production doesn’t add to world warming. Next question: Who exactly is going to use all this uranium? As you read this the world has 433 nuclear reactors, another 62 are being built, 156 more will be built by 2020, and yet another 343 by 2025. A grand total of 994. China and India alone will account for 260 of them while Russia alone has 12 The diggings are everywhere at Andamooka. reactors under construction with 14 Mullock heaps like these surround the township more planned. Only Germany is officially and are scattered throughout it. abandoning nuclear power; although its nine plants will stay open for another 10 years, their closure will be more than Basically it’s about the trillion dollars millions are reported as being poured offset by the hundreds of new plants being the Olympic Dam mine is predicted into a highly secret process that will allow constructed elsewhere. to generate over the next 45 years. Is uranium fuel to be burnt to its last atom China says it will increase its atomic that, you may wonder, $US or $A? Who before being spent; instead of being capacity eight times by 2020, while India cares, it’s a sum that’ll transform already- discarded with only a few per cent of its says it will increase production 13 times booming Adelaide into one of the world’s energy having been accessed by 2030, and South Korea aims to get 60 richest mining towns and give South per cent of its energy from nuclear power Australia an annual boost to its economy The new process that most folk have by then. These three countries are likely to guessed at $100 million per annum. never heard of involves creating an alloy of uranium and beryllium, a metal that’s use more uranium over the next 20 years The South Australian Parliament recently No. 4 on the Periodic Table just one below than the United States, Japan, France, passed the Roxby Downs Indenture lithium which was something else not and Germany combined. Act that has enabled BHP Billiton to go many had heard about until a couple of That of course is when Olympic Dam’s ahead and spend the $1.2 billion its board years ago and of which most people are glory days will really take off as the world’s has approved for preliminary work and now well aware. reactors clamour for uranium and even the equipment for expanding the Olympic But beryllium’s still well over this story’s beryllium-extended version of it could be Dam mine – the work that needs to be pushed to meet demand. done to get things going. event horizon so let’s get back to what’s staring South Australia in the face today, It will be interesting to see what happens The Indenture, as it is known, also the elephant in SA’s back room that looks to BHP Billiton’s share price in the provides for BHP Billiton to pay royalties to put The Pilbara, Darwin’s gas bonanza, years ahead. Currently short-term share of between 3.5 per cent and 5 per cent Gladstone’s industrial revolution, and fluctuations – ranging from $43.80 to on its copper, uranium, gold and silver everything else we can think of right into $37.34 at time of writing – appear to be production for the next 45 years. After the shade. the result of a focus on the price of iron that, who knows? The expansion is a $30 The expansion of the existing Olympic ore and BHPB’s order book for it. Most billion job and its ore lodes are believed to outsiders have little or no understanding be extensive enough to possibly maintain Dam mine will eventually obliterate everything that stands today, subsuming of the vast wealth being created by the the mine for two, three, maybe five Olympic Dam development even though the present mine in giant open cut pit. The hundred years. it has devoured potential dividends since ore body lies 350 metres underground and 1975 when Western Mining discovered the All that remains to be done before they not a single outcrop of any of its four main lode that makes Lasseter’s golden dreams begin to dig is BHPB board approval to minerals breaks the earth’s surface. proceed. That’s expected sometime in this seem like custard. One wonders exactly how the lode was second quarter and with that $1.2 billion Next big earner will be copper which discovered. already committed and being spent as Olympic Dam produces to the highest you read this, it seems almost certain to The answer is: By a lot of genius, a lot grade of refinement from its own on-site go ahead. of exploration, even more faith, and refinery. It will be exporting raw copper When it does, expect a torrent of a financial investment so vast and ore too and future world demand seems development and the inevitable over so many years that one wonders assured although its high price not excitement that goes with it to hit Adelaide how Western Mining Corporation’s necessarily so. There was a mini recession and spread throughout South Australia shareholders put up with it from about in the late 70s the beginning of whose recovery was preceded by that of the which now has 18 mines approved or in 1930 until 1975 when the deposit was international copper market. But with all construction where only eight years ago discovered and finally confirmed. During that wire around and its role as the world’s there were only four. the 1960s and 70s WMC spent an average 56 per cent of its profits on exploration greatest conductor of electricity, copper Today world demand for uranium before hitting the jackpot a few kilometres seems pretty safe for a long time to come. alone seems insatiable with a world north-west of Roxby Downs. But when one thinks of a mine operating production shortfall of some 11,000 for centuries, who knows? It’s not that tonnes; the gap being largely made up long ago in the grand scheme of things by cannibalising nuclear warheads that, A trillion dollars since toad livers and bats’ wings seemed since glasnost, have been deemed surplus –$1,000,000,000,000 – is a indispensible to medicine and copper’s to requirement. Too much death in the main use was to make bronze. bunkers, what luck to find a ready new fair-sized whack of moolah While Olympic Dam’s gold and silver market for it. and the estimated value of production is already worth millions But a lot can happen in 45 years, never the Olympic Dam mines’ of dollars a year it will remain only a mind a few hundred, when “a lot” can profitable sideline earner. It’s a uranium include nobody wanting uranium and production in the next 45 and copper mine we’re really talking copper any more. In America, for example, years. about.
10 Shipping Australia Limited I Autumn 2012 Autumn 2012 I Shipping Australia Limited 11 What makes a remote mining township tick?
ne can’t sensibly turn to Andamooka to describe this Obecause the mere fact that it still exists defies all civic logic – much as the flight of a bumble bee defies the aeronautical science which proves it can’t fly. We must turn therefore to Roxby Downs which is completely owned by BHP Billiton under the terms of its Indenture to the South Australian Government. The town has no conventional municipal council but is run by an official administrator appointed by the Government and BHP Billiton. The current incumbent of this potentially dictatorial office is Mr Bill Boehm, a professional public service executive who’s been in the job for 13 years. He loves it and the fact that the Roxby Central, the town’s only shopping centre. town apparently unanimously loves him, does exactly what he tells it, and is a model community says all about Billiton and the South Australian When he came to Roxby housing, his management style. Government. The town’s council is education, and recreation were appointed by the administrator with priorities with other major projects Plus the fact that he wouldn’t a focus on community development including to increase community be in the job all that time if the as a major activity. His role allows activity, to establish an independent stakeholders didn’t have confidence much greater scrutiny than might local newspaper, launch a local in the job he’s doing. be exerted in the traditional elected radio station, and build a community He answers directly to BHP mayor-council arrangement. website. “These projects have all been achieved and are now independent self-supporting operations,” Boehm Bill Boehm, administrator of Roxby Downs says. “If they lead to everyone’s average stay here extending from four years to five years, it will be a significant civic achievement. There is no apprenticeship to social acceptance here and the settlement was deliberately designed so all suburbs would be equal with managers living next to workers. “Earnings here are not exceptionally high but equally the cost of living is lower than in many mining towns and work conditions are superior in many
12 Shipping Australia Limited I Autumn 2012 Autumn 2012 I Shipping Australia Limited 13 Main Street, Woomera, during rush hour!
ways with generous rosters at the recent donation of $1.295 million to workers, for example, who aren’t mine. On their days off many families install lights on the sports ground is connected with the mine and don’t run private businesses such as carpet just one of its very many donations to have large salaries having to live cleaners, hairdressers, and homeware local lifestyle. in shared accommodation if they retailing. Its houses are two, three, and four- can find it. “Annexes” which are “The agreement between BHP- bedroom and mostly prefabricated really a self-contained lean-to are Billiton and the SA Government off-site for local businesses to fit-out not uncommon and are described is that Roxby Downs is under the and landscape on-site. BHP-Billiton sometimes unkindly as “dongas”. company’s care and control with it controls the property market by using its best endeavours to care limiting new homes to match its Virtually nothing is available to rent for non-employees who live or settle current labour needs. The houses and the going price is about $700 here.” can be bought by its employees a week, cheap perhaps compared with a few for purchase by private With the town now gearing up to to the $1200 at, say, Port Hedland individuals deemed desirable double its population to 9000, all where a view of the ocean is thrown additions to the town’s infrastructure. design and infrastructure will be in. In such a tightly controlled provided by BHP Billiton although the market there is no opportunity for And that’s about the only smirch town’s council, all of whose members speculators although 80 per cent of on Roxby Downs’ paradise factor are appointed by the administrator, property is now privately owned. needs to approve all the plans. although, according to some Olympic Dam may not be the dissidents, Friday night at the town Revenue from household rates highest-paid mine in Australia but pub is known as Fight Night and helps to provide the town’s essential there are compensations for that. it seems to be a significant social services and any shortfall is shared Undergraduate trainees begin on attraction for would-be combatants between the mine company and the $70-$80,000 a year and it’s common SA Government. and spectators alike. for 20-year-olds to be able to buy Bill Boehm says: “We have a world a home. Prices range between Overall, however, the town exactly class mine so we need to have a $390,000 (weatherboard) and fits Bill Boehm’s aspirations for it world-class town. This is a special $800,000 (brick) with four-bedroom as a happy as well as prosperous place where thousands of men and homes having sold recently for as community. “It’s so sociable here, it’s women gain experience that’s valued little as $470,000. ridiculous,” one young woman says. around the world.” The company has just released Young men are less convinced and BHP Billiton appears to be a 107 new houses. Despite that, the complain that there’s a shortage of generous if autocratic landlord. A property situation is dire with retail single women.
14 Shipping Australia Limited I Autumn 2012 Compared to Roxby piped in and distributed by truck to residents, who are at times left dry. Downs, Andamooka is a The population would like the mining forgotten town beyond company to do more but the miner points out that Roxby Downs, not the pale. Outside the Andamooka, is its host community incorporated areas of and home to most of its workforce. South Australia and its It told a recent government inquiry: “The best option for Andamooka is governing body, the to seek an agreement with the state Outback Communities government to become part of a local government area where they can Authority, it is unable to get funding before they look to the charge rates to upgrade company as a panacea.” what little infrastructure That seems to have happened the shambolic hamlet has. because the town has since elected an Andamooka Town Management Committee to draft a proposal to Somehow the settlement slipped introduce a community contribution through the net of civilisation in the scheme, similar to council rates, course of 80 years of people digging to fund infrastructure and services. for opal anywhere they liked – in their Imagine how that’ll go down in a back yard, in your back yard – and community that preferred to live in building temporary homes nearby. squalor for almost 100 years rather The local cemetery shows that many than spend a cent on civic affairs! Heath-robinson contraptions such as this and lived into their 60s and ended up an overturned caravan complete with teddy bears staying for eternity. WOOMERA: Once the and kids toys litter the roadside at Andamooka. Now the South Australian town of every space findings to earth before hurtling down Government is making noises cadet’s dreams today is to break apart on re-entry and send like “My goodness, you’re there” its bits crashing into the surrounding and is making plans to send paid now a ghost town albeit desert. government officials to run the place. perfectly maintained. One can imagine a handful of clean- One must hope that Woomera has a cut young lads arriving full of official better future than just picking up the pieces and waiting for the next lot. vigour then deciding to do a bit of But for what is it maintained? - And it seems extremely likely that it digging in their spare time, selling a Ostensibly to house visiting scientists has. chunk of opal now and then over the observing the infrequent launches years, gradually becoming cream- of space vehicles. A thousand Its surrounding countryside is still coloured like everything else in town scientists is a lot of people with specs a prohibited military area; there before joining the ranks of dearly and beards and they stay only a few are roads where you don’t get far beloveds on the cream-coloured hill. weeks and go nowhere near filling a without being ordered to turn back- town that at its peak housed 6000 there are even special turning bays Just how one would acquire a people. to help you do just that. But it will beloved in a place like Andamooka is soon be opened up for mining and the riddle of the archipelago. Just such a space launch is scheduled exactly a year from now. some $35 billion-worth of iron ore, Andamooka relies on BHP Billiton to Scramjet-1 is a 1.8-metre spacecraft gold and uranium are expected to supply water from its Olympic Dam that will be rocketed to an altitude of be developed around there within desalination plant. That water is 34 kilometres and radio its scientific the next 10 years. Some even talk of it being the site of another Olympic Dam-sized mine. Certainly at only 100 km from Roxby Rocket Park is Woomera’s major tourist attraction with a Downs, less than an hour’s drive huge collection of missiles from its space heyday. on the perfect link road, it would be a perfect dormitory suburb for Olympic workers prepared to accept the daily drive. Perfect, but only in the short term if/until the mirage of Carrapateena materialises. In the meantime its 147 residents, like Roxby Downs’ 4500 and Andamooka’s 400, live happily ever after with a lifestyle with little or no resemblance to the outside world. Ideal really and strongly reminiscent of Truman Burbank’s life until that something happened ...
Autumn 2012 I Shipping Australia Limited 15 Olympic Dam
Here’s what it will take to build the dream
By ARCHIE BAYVEL
ven if nothing else happens in 560 kilometres inland. The next consumption by 70 per cent over The Archipelago Of Dreams 10 years will see some 11,500 the next four years to keep all the Eapart from the development of over-dimensional loads between new machinery running. Clearing Olympic Dam that little bit of Australia Port Augusta and Olympic Dam. that giant, 3 cubic kilometre hole is never going to be the same again. Fifteen passing bays on the Stuart in the ground and scattering its And the same goes for the P&L pages Highway and the Olympic Way 100 million tonnes of waste will of BHP Billiton’s Australia operation. give non-mine drivers the comfort use 6.6 million tonnes of diesel of knowing that any delays are Contemplate this: In 2011 Olympic alone over four years. not predicted to last longer than Dam’s underground mine produced • Construction of a new electricity 45 minutes. That may, of course, 194,100 tonnes of copper, 4,045 power generator to keep the seem longer to caravan-loads of tonnes of uranium oxide, 111,368 lights on not just at the mine itself grey nomads trapped on a 45 °C ounces of refined gold and 982,000 but throughout the archipelago. day. ounces of refined silver. When its This means either a transmission giant new, kilometre-deep pit has • A new port near Port Augusta line from Port Augusta or/and a been dug out it will have an eventual to handle 280 equipment-supply gas pipeline from Moomba, in target annual output of 750,000 vessels over the first seven years Queensland, to Olympic Dam. tonnes of copper, 19,000 tonnes of of construction. uranium, 800,000 ounces of gold and • Increasing the size and admin 2 million ounces of silver. • A new 105-kilometre rail link of Roxby Downs from just to connect Olympic Dam to the under 5000 people to 9000 The infrastructure needed to build Adelaide-to-Darwin railway at PLUS building the nearby the mine, far less keep it running, will Pimba. Predicted traffic is two 10,000-denizen temporary town of impact the whole of South Australia trains each day between Port Hiltaba to house the construction and the Northern Territory requiring Adelaide and Olympic Dam and workers. as it will: one train a day between Olympic Imagine if you were an industry Dam and Darwin. • Vast new water supplies both for manager given the task of co- the industrial process and for • Large new facilities – sheds, ordinating all that. It’s so vast and human consumption. Current loaders and unloaders - at Port complex that accomplishing it mine water demand is 12 billion Adelaide and at Darwin’s East Arm would probably be the crowning litres p.a. which comes from port to handle both import and achievement of your career. You’d be the Great Artesian Basin. An export traffic. a big wheel by any standards. It gives additional 44 billion litres p.a. will a good idea of the size of the BHP come from a desalination plant • Expansion of Roxby Downs’ Billiton organisation that, despite all to be built at Port Bonython and present airport or construction of that, you’d just be a barely visible cog piped north to the mine. a completely new one to handle in its vast admin machine. And you international Boeing-737-size • new roads to transport new wouldn’t be within cooee of digging planes 24/7. machinery from Southern an ounce of ore which is, after all, the Ocean ports to the mine site, • A leap in Australia’s diesel sole reason for any of it existing!
16 Shipping Australia Limited I Autumn 2012 Autumn 2012 I Shipping Australia Limited 17 Advertorial
From the Australian Hydrographic Service
Are you ready for compulsory electronic navigation charts?
An update from the Australian • Decide on a dual or single Australian ENCs and has more Hydrographic Service, Royal ECDIS. IMO standards require all than 800 ENCs available, Australian Navy. What is ECDIS? ships provide a backup option in covering all Australian and PNG In 2009, the International Maritime case of system failure - either a ports and trade routes. Organization (IMO) approved second ECDIS (dual) or a paper chart portfolio (single). At least • train your crew with generic amendments to the International ECDIS and type-specific training. Convention for the Safety of Life one major tanker fleet is being Ensure you are able to satisfy at Sea (SOLAS) whereby it will be fitted with triple systems as the Government and any compulsory to fit Electronic Chart hardware costs are significantly Display Information System (ECDIS). outweighed by the ability to independent audit authorities that The amendment to SOLAS means continue the full voyage with full your crews are competent in the that all large passenger, tanker and (primary and secondary) systems use of ECDIS to maintain safety cargo ships will be obliged to fit still in place. of navigation. ECDIS on a rolling timetable that • Ensure that your Electronic • Paperwork - Obtain Letter of begins in July 2012. navigational Charts are official Equivalency from your Flag State, In order to meet these timelines, it and compliant and apply the ensure the ECDIS Type-Approval is critical that owners and operators latest Notices to Mariners (NtMs). Certificate is accepted, and talk seriously reflect on what this updates to AusENCs contain all to your insurance agency to see means for their fleets. Whilst ECDIS Permanent, Temporary and if they have specific can offer safety and efficiency Preliminary NtMs, so mariners requirements. improvements when used by only need to load the latest suitably trained operators, it is by no updates to keep their ENCs • Demonstrate compliance for means a ‘set and forget’ bridge tool. current. Also ensure you have Port Authorities through physical Transitioning to ECDIS will require Raster Navigational Charts (RNC) demonstrations of crew owners and operators to seriously for areas where there are no competency, and of onboard consider the implications of the new ENCs. Note: Australian safety management systems. carriage requirements. One of the Hydrographic Service electronic most important is the completion • Conduct a full analysis of how products have new product of IMO generic ECDIS training then ECDIS will change your modes of branding and the products type-specific system training so operating onshore and re-write that ships’ officers are able to fully formerly known under the “Seafarer” logo - RNC, Tides, your company’s safety understand the capabilities and management system. limitations of ECDS and ENCs. Viewer, GeoTIFF - have changed name to align with the new • Don’t delay, start today! Training YOUR CHECKLIST - When you AusENC product under the and certification can take up to develop an ECDIS implementation “Australian Hydrographic three months. strategy, be sure to include these Service” logo. The new names factors: are AusRNC, AusTides, For more information visit AusChartviewer and AusGeoTIFF. www.hydro.gov.au for the S-66 • Find out when each different ship the Australian Hydrographic “Facts about Electronic Charts and is required to carry ECDIS. Service, part of the Royal Carriage Requirements” approved timeline varies from newbuild Australian Navy, is the by the International Hydrographic and existing vessels. only producer of official Organization.
18 Shipping Australia Limited I Autumn 2012 Autumn 2012 I Shipping Australia Limited 19 retrospective
It’s the people who stand out and here’s what they had to say in our big stories of the year
By ARCHIE BAYVEL
ooking back on the past year I’ve had a dozen men with years of Clean Seas, the beleaguered it is some of the things people of cotton farming experience sit Port Lincoln fisheries company Lhave said in our stories as around this same kitchen table whose world-first captive much as what they’ve actually done and they don’t get it either.” – Bill breeding of southern blue-finned that sticks in the mind. For example: Willis of Bullamon Plains, a big tuna saw its first-born fingerlings cotton farmer famous up Moonie • “Only when we can say that die from bashing their heads everyone is comfortable can River way, graciously excusing against the sides of their tank. we say that India’s living an inability to understand details standards have risen.” - Captain of his new 1000-acre irrigation Barrington Fernandes, process scheme that will have come into improvement manager at DP production this season adding World’s Nhava Shiva International to his existing 4500 acres under Container Terminal, in Mumbai. cotton. • “I don’t have a career. I have a • “We came originally from job with great responsibility not Kenmore, a little fishing village just to our passengers but also in County Kerry, Ireland. I went to the 13,000 people who work there recently and as the plane for MSC Cruises. That means banked over the green country I 13,000 families depend on us. burst into tears. I couldn’t stop. I just work. It never stops and I just wept and wept and wept! my greatest luxury is to find time I’d found how our aborigines with my family.” - Pierfrancesco feel about their land.” - Donna Vago, now world head of MSC Stewart, mayor of the Balonne Cruises whose father pulled him Shire and civic queen of St out of Cambridge University and George township in Queensland’s set him to work because he was part of The Riverland. enjoying uni too much. • “Our yellowtail kingfish have • “I don’t blame you for not enteritis, an infection of their understanding what I’ve told you; intestines.” – Craig Foster, CEO Donna Stewart, mayor of Balonne Shire
20 Shipping Australia Limited I Autumn 2012 condemned buildings, crowded who are seeing their bank balances black and condemned buildings and topped up in line with their lake- neighbours who ... sized dams. People who die in the open have Hovering in the background of their a distinctive way of lying on the prosperity, however, is the question ground: crumpled like a discarded of how much of The Riverland’s bag of garbage and that’s what water can be diverted from the thousands of the neighbours look cotton industry to revive the dying like. Except, to parody Monty Darling and Murray rivers. The Python’s recumbent parrot, they Murray-Darling Basin Authority are only sleeping. Their standard continues its endless deliberations of living rises dramatically every with its main job so far as growers year the monsoon ends and the rain are concerned being to set the stops drenching their blankets. Then amount of water they can draw off the rains come again and it’s not so for irrigation. good for them again. It seems that the irrigation take- Then there was the night the bombs off has to be reduced by at least went off and the experience of 3-4000 gigalitres (a gigalitre equals being in a city that had already 20 Beijing Olympic swimming pools) experienced one devastating terrorist to give the Murray as well as the attack ... The thoroughness and Darling half-a chance of surviving extent of the measures to prevent it with viable ecosystems containing happening again: High gates to the plants, fish and running water. hotel grounds swinging shut, stout bollards rising out of the ground to AT ST GEORGE, capital of Pierfrancesco Vago, head of MSC Cruises prevent any vehicle moving in or Queensland’s part of The Riverland, out, the cordon of security guards Donna Stewart and her electorate • “Economic growth, believe it or surrounding the building, and the are currently battling floods caused not, is tracking a little above extensive personal searches of every by the tremendous recent La Niña the long-term trend rate. And visitor. rains. With all the massive projects that’s why there is reason to be afoot in Australia right now one IN GENEVA, so much of what confident about our economic wonders how long it will take to Pierfrancesco Vago had to say future ... Overall it’s good news. defined new ways of thinking about We have a relatively strong the international cruise industry. He economy compared with the believes that it faces such a strong rest of the world.” – Sean Aylmer future that it will prosper even during writing in the Sydney Morning downturns. Herald on February 12. Most importantly for us he predicted FROM MUMBAI we reported on that the arrival of MSC cruise vessels the super efficiency of DP World’s in Australian waters was not a matter Nhava Shiva International Container of “if” but rather of “when”. terminal and its MD, Alpesh Sharma. Just one of Mumbai’s three And the interview with Vago led terminals, it was shifting 1.8 million on to St Nazaire, once home port teu back in June, heaven only knows to Germany’s fleet of submarine what that’s up to now. raiders. Today it’s home to the vast STX shipyard, the biggest in Europe, But it’s Barrie Fernandes’ comment and the mysterious giant liner, the that lingers top of mind...words that X32, that is abuilding there for an as- should be printed in large letters, yet unknown owner. framed and hung on a wall facing every economist. Because the truth UP THE MOONIE RIVER at Bullamon is that while many more Indians Plains is about as far from Geneva now acquire cars and consumer and St Nazaire as imagination can goods, the people of the streets are take you. But it’s at the heart of The everywhere. Their home a tarpaulin NSW Riverland where Australia’s lean-to or even just a blanket. cotton industry is booming even as you read this. Wherever one goes in tourist Mumbai what one sees is a With a record crop of more than 4 mirage ... grand buildings, wide million bales last year, this season’s boulevards, green parks. Yet as coming harvest is expected to close as the nearest back street lies exceed that by a million bales. Great the truth in mountains of rubbish, news for the industry, even better building debris, empty black and news for the Bill Willis’ of the world Bill Willis, cotton farmer
Autumn 2012 I Shipping Australia Limited 21 come to grips with the too-much- would soon make tuna quotas curious about his recent opponent’s water years. unnecessary. Australian connections. “I don’t suppose,” he asks, “ you’d know IN PORT LINCOLN, the little city Soon after that the first fingerlings a bloke called Hagen Stehr?” The on The Bight with its population of hatched; soon after that they began tennis player is a fisheries research fishing millionaires, when we first to die from a variety of reasons, not fellow at nearby Stirling University. reported from there the fish world all of which are understood even The Clean Seas legend has reached was agog with the news of tuna now. To date no land-bred tuna have even there. millionaire Hagen Stehr’s plans to lived long enough to even approach breed southern bluefin on shore. It the $50,000 price a great fish can The extraordinary decline of was even more agog when it turned fetch on the Japanese market. Scotland, its vast new underclass out he’d actually build the scientific of people held together by the infrastructure to do it. Miraculously however the project dole, lavish medical services, continues and fishermen and innumerable aluminium appliances Hagen himself travelled the world scientists all over the world watch and prosthetics provided by these spruiking his plan and the progress with interest. services, and a native cunning based it had made. His Clean Seas Tuna on “you’d never guess what I’ve just company went public to fund the IN BRIDGE OF ALLAN, a tiny got for free.” project and investors poured in Brigadoon-like village on the to what seemed a well-thought, fringe of the Scottish Highlands, IN EDINBURGH, the most well-executed experiment that an exhausted tennis player is astonishing information in the
Bert Easthope, MD of Genesee & Wyoming
The wash away of the Adelaide-Darwin line at Edith River, some 80 km north of Katherine
22 Shipping Australia Limited I Autumn 2012 course of researching Scotland’s in Australia. It confirms this writer’s new open-cut operation hits its straps current shipbuilding status was that personal on-the-spot observations that around 2019 it will send a daily trainload its world-famous Forth Road Bridge is the country is booming with the real of copper and uranium products up the falling apart. Built in 1964 to last 120 industries rock solid and with full order line to Darwin for export. years, it is expected to be little more books. The fact that financial services Bert Easthope, Genesee and Wyoming’s than a bicycle track by 2016 and to be industries are having the vapours MD in Australia says: “Over the past closed even to that as early as 2020! Its should be of no concern to real people 12 months we’ve invested heavily in suspension wires are giving way in what although I doubt that Aylmer would the north-south corridor. We’ve bought must surely be the greatest construction necessarily endorse that opinion. seven new locomotives, five of which scandal in Scottish history since the Do you remember FreightLink, founding have been delivered and the other two collapse of the Tay Railway Bridge in operator of the Adelaide-to-Darwin will arrive next month. 1879. railway? While the name has long-since “We’ve also invested in the track and A new road bridge – The Forth Crossing gone the railway itself is going strong the terminals at Alice Springs and – is already under construction for a under the name of its new owners Darwin, previously run for us by Pacific tendered price of £790 million, well Genesee & Wyoming who bought it in National, have been brought in-house. below the original estimate of £1.2 late 2010 for $334 million, a bargain We’ve also purchased three new heavy billion. Sounds like a bargain as the price considering it had cost $1.38 container lifters. Road Bridge tender probably did too billion to build. at the time. Alas, it has resulted in a “We’re still growing; partly incremental, Just a few weeks back the world’s product whose life is now predicted to partly from new business as new biggest investor in resources – be over 80 years too early. The Forth mines open and come into production. Blackrock, the international funds Rail Bridge, built in 1890, still stands Our container traffic continues to be manager - just doubled its shareholding with around 200 trains crossing it every predicated on supplying Darwin.” in Genesee & Wyoming. Reason for day. the plunge is that the Adelaide-to- It doesn’t seem all that long ago since BACK IN SYDNEY, Sean Aylmer cuts Darwin railway is the planned route for many shipping people nodded wisely as to the real chase when summarising ore exports from Olympic Dam, the they said the north-south railway would the state of the economy back home world’s biggest mine. When the mine’s never fly!
Newcastle Stevedores Unit 14, 56 Industrial Drive, MAYFIELD NSW 2304 l PO Box 525, MAYFIELD NSW 2304 Ph Main: +61 2 40147100 l Fax: +61 2 49688711 l Mobile: 0412 680 001 l Email: [email protected] Illawarra Stevedores North Wing Building Christy Drive, Port Kembla NSW 2505 l PO Box 88, Port Kembla 2505 Telephone: 02 4276 4950 l Facsimile: 02 4276 4770 l Mobile: 0438 069725 l Email: [email protected]
Autumn 2012 I Shipping Australia Limited 23 Welcome to Treasury Wine Estates
Treasury Wine Estates (TWE) is a unique global wine company with a leading international portfolio of new world wines. From the establishment of Australia’s Penfolds in the mid 1840s to the 1876 founding of Beringer Vineyards, a winemaking legacy has been created. The TWE portfolio includes iconic brands such as Beringer, Chateau St. Jean, Lindeman’s, Wolf Blass, Penfolds, Rosemount, Wynns Coonawarra Estate, Stags’ Leap Winery, Matua Valley, Etude, Castello Greg Phillips di Gabbiano, Seppelt, Coldstream Hills, and Devil’s Lair. Sales Manager With over 11,000 hectares of vineyards, Phone: sales totalling over 33 million cases of wine 13 48 93 (TWE) annually, and revenues of about AU$1.8 billion, TWE employs more than 3,500 winemakers, Email: viticulturists, sales, distribution and support staff [email protected] across 12 countries.
24 Shipping Australia Limited I Autumnwww. 2012 tweglobal.com CUSTOMER ORDERS: 13 2337 [email protected]
www.cub.com.au www.fostersgroup.com www.sabmiller.com
NATIONAL ACCOUNT MANAGER: [email protected] [email protected]
Autumn 2012 I Shipping Australia Limited 25 AGRICULTURAL COMMODITIES Falling prices and heightened volatility are expected through this year
By MICHAEL CREED, economist – agribusiness, National Australia Bank
rices for agricultural commodities macroeconomic projections, it is likely to increasing, buoyed by ongoing (albeit managed to outperform most take around two years for prices to fall weaker) growth in per capita incomes in Pother asset classes during 2011. A from their peak back to levels consistent the developing world. This implies that combination of factors, such as extreme with their long-run trend. stocks levels of a number of agricultural weather conditions, export restrictions, commodities are still expected to remain Looking ahead, a gradual decline in high oil prices and ongoing developing relatively tight through 2012, despite prices is how we generally expect the economy demand saw stocks of most agricultural commodity story to play out. record production levels. agricultural commodities hit critically low A massive production response to high At the same time, risk is ever present levels. prices in early-mid 2011 is well underway. on the weather front. Already this is the Reflecting these developments, global Reflecting this, record acreage for a second consecutive year in which we food prices surged, with the UN FAO Food number of crops were sown, including have experienced a La Niña event and Price Index hitting record levels in early corn, cotton and soybeans. although it was considerably weaker than 2011. Since then prices have generally At the same time, record harvests are last year’s, it is still causing problems in been pulling back as the global response slowly being realised, with recent USDA South America. Similarly, the northern begins to materialise. Yet the maxim that estimates suggesting record global hemisphere winter crop is currently in its agricultural commodity prices take the harvests for corn, cotton and wheat. dormancy phase, implying that a lot of elevator up and the stairs down holds. It While the production response is hugely unknowns are likely to persist for grains took just 10 months for prices to break important, it is the stocks situation that markets, while livestock flocks and through from their decade average to their matters most for prices. Consumption herds have been vulnerable in some key peak. Based on current production and of agricultural commodities is also exporters.
26 Shipping Australia Limited I Autumn 2012 With some of these concerns evident and far has been largely in fluid milk and milk level. still historically low stocks levels, volatility powders. Indian and Indonesian demand in prices is likely to persist. Generally should also help provide some support. Prices for grains have begun 2012 on speaking, when stocks are low, price Nonetheless, the global market does a positive note, with concerns being sensitivity to weather events tends to be appear well supplied so this should point raised about the South American corn elevated. Outside markets are also likely to to a lower season-average price this year. and soybean crops. Mounting concerns spur additional volatility. surrounding the northern hemisphere Prices for fibres continue to be supported winter crop, where much colder than A recession in the Euro-zone is pencilled by a very tight supply situation. Cotton normal temperatures have restricted in by most analysts (NAB included) prices still sit well above normal levels as exports from some key ports and have and a poor run of macroeconomic the acreage response from prices above caused concerns around winter kill, data releases could fuel further bearish 200 USc/lb was not sufficient to restore providing some support to wheat prices sentiment. Similarly, conditions in the the stocks situation to more normal levels. recently. United Kingdom have been deteriorating, Similarly, Chinese State Reserve buying thereby increasing chances of recession has added additional support to the Much of the movement in wheat prices there, while economic growth in China has market. is likely to continue to be driven by slowed. movements in corn prices. With the Looking ahead, it appears that prices corn market still tight, demand for feed The big risk for prices from the are likely to weaken given the global wheat in Asia is likely to lift, therefore macroeconomic front is if conditions in production outlook although we see some supporting wheat prices and offering some Europe spill over to the rest of the world, near-term upside risk. Should China respite to Australian producers sitting on particularly the big developing economies, actually ship its recent export purchases considerable stocks of feed wheat. which have generally provided price from the United States, the stocks support. situation there could get particularly tight. On balance, however, the global wheat Similarly, some concerns have been raised market appears well supplied, with By commodity, livestock prices are set around the crop in Maharashtra, due to the increasing stocks pointing to a lower to remain fairly strong through 2012. relatively slow pace of deliveries. average price this year. Similar to wheat, In Australia, despite a high AUD, the sugar prices are likely to be supported in Japanese nuclear disaster and disruptions Nonetheless, global stocks are set to the near term given current tightness in the to live exports, cattle prices managed to be added to this year and considerable physical market. However, most analysts increase more than 12 per cent in 2011. downside risk is evident, as fibres are forecasting a surplus for 2012-13, While we expect prices to fall, they should tend to be a little more responsive to which is conducive to a lower price stabilise at a relatively high level. macroeconomic ructions than other environment although this does discount Global beef production is set to decline commodities. Similarly, wool prices are the risk to the production outlook and the for a fifth consecutive year in 2012, while also likely to weaken through the year potential for a rebuild in demand at lower the United States’ cattle herd is currently as weak retail sales of clothing in the price levels. at its lowest level in 60 years. This bodes big developed economies holds down In a lower stocks environment, any extremely well for exporters, where we see demand growth. While some of this news surrounding production prospects, a solid rise in export demand just as the is likely to be offset by rising Chinese particularly in Brazil, are likely to have a Australian cattle herd expansion is well demand, conditions still point to weaker fairly large impact on prices. and truly entrenched. wool demand through the year. Similarly, lamb prices are likely to be However, global stocks of raw wool and When all the factors are taken together, buoyed by solid export demand through greasy wool are extremely tight, and the however, the outlook for agricultural 2012. Two key markets to watch will be production response to high prices has commodities in the year ahead is one of China, which accounted for four-fifths of been weak at best. To us, this suggests lower prices on average, with considerable the growth in Australian exports in 2011, that prices are likely to weaken a little bouts of volatility thrown up by weather and the United States, which will need further and then settle at a relatively high and macroeconomic events. to import more Australian lamb to meet domestic requirements. Despite this, prices are likely to fall as an increased Australian flock sees more offerings at saleyards. However, they should settle at a relatively high level underpinned by tightening global flocks and a solid export pace. Dairy prices appear to be on a downward trajectory on the back of rising global production in response to high prices in 2011. According to recent statistics, milk production among the major exporters has performed solidly so far this season, with increases in New Zealand, Europe, the United States and Australia. However, much of this increased production is likely to be absorbed through increasing demand. The recent New Zealand-China Free Trade Agreement is likely to boost Chinese demand for New Zealand milk powder. According to the agreement, the first 115,473 tonnes of milk powder will attract a tariff of 5.8 per cent instead of the usual 10 per cent. Further support is also likely to be provided by increased Russian imports of cheese and butter, as increased Russian dairy production so
Autumn 2012 I Shipping Australia Limited 27 Accident prevention Occupational health and safety performance in our shipping industry
By Gerard Newman, director, Seacare Management Section, Seacare Authority
he Australian shipping industry is undergoing a process • Can-do approach to risk taking of dramatic change. The Australian Government’s • Remote location of workforce, Treform agenda to revitalise the Australian shipping industry and other related policy reforms mean that the • Continuous exposure to risk while industry is facing a perfect storm of change and renewal. on a vessel, and During this time of change it is important for the industry not • Ageing workforce. to lose sight of its responsibilities for the health and welfare of the people without whom the industry would not exist – While the above features of the industry present challenges to Australian seafarers. operators and employers they also present challenges to the bodies responsible for regulating the OHS performance of the The Seafarers Safety, Rehabilitation and Compensation industry. Authority (Seacare Authority) is responsible for regulating the occupational health and safety of Australian seafarers. The OHS challenge facing the shipping industry can be best The Seacare Authority is assisted in this by the Australian illustrated by the performance of the scheme against National Maritime Safety Authority (AMSA) which performs the OHS OHS Strategy targets. inspectorate for the Seacare scheme. The Seacare scheme The Seacare scheme has not performed particularly well covers seafarers employed on Australian registered vessels against injury prevention targets. In 2010-11, the scheme engaged on interstate or overseas voyages and on vessels recorded an injury incidence rate of 45.7 (lost time injuries engaged in the coastal trades and vessels declared under per 1000 full time equivalent employees) compared to a the Navigation Act 1912. In 2010-11, the Seacare scheme target rate of 25.5. With one year of the strategy remaining covered some 7100 seafarers employed on 250 vessels by 36 it is extremely unlikely that the Seacare scheme will meet the employers. target of 23.9 by 2011-12. The lack of improvement in safety The Seacare Authority’s legislative mandate is derived from performance in the Seacare scheme remains a significant the Occupational Health and Safety (Maritime Industry) Act challenge to the Seacare Authority, AMSA and employers alike. 1993 (the OHS(MI) Act). The OHS(MI) Act imposes duties of care on operators of vessels in relation to their employees. The Seacare Authority is responsible for ensuring that the obligations imposed on employers and others under the OHS(MI) Act are complied with. The task of improving the occupational health and safety performance of the Australian shipping industry faces many challenges. Not the least of which is the nature of the industry itself. Some of the distinguishing features of the industry from an OHS perspective are: • the robust industrial relations environment of the industry, • Workplace culture somewhat resistant to change,
28 Shipping Australia Limited I Autumn 2012 The Seacare Authority collects a range of statistical information on injuries to seafarers in the Seacare scheme. The data is primarily derived from workers’ compensation claims lodged by injured seafarers with their employers. From this data source a wealth of information on the nature of injuries sustained by seafarers can be obtained. The following charts illustrate the location, cause, and nature of injuries sustained by seafarers that resulted in accepted workers’ compensation claims in 2010-11. In terms of the location on the vessel where injuries are most likely to occur, deck spaces are by far the most dangerous location with over 50 per cent of injuries occurring there. Other dangerous locations are machinery spaces followed by the galley and stairs and gangways. The bridge is the safest location on the vessel.
received in 2010-11. Other significant injuries received include fractures and other diseases (particularly hernias). In terms of the part of the body most affected by injuries, the three most common locations are, upper limbs, trunk and lower limbs. Fortunately, the neck and head do not appear to be significant locations of injuries sustained in 2010-11. The Seacare Authority publishes the above data and other information relating to workers’ compensation claims and OHS incidents in its Annual Report as part of its statutory responsibility to publish information in relation to workers’ compensation and OHS. In addition the injury data is used by the Authority to inform decision making on the need for
The underlying causes of any industrial accident are many and varied and are often not easily identified. One way to analyse the cause of an accident is to look for what is known as the mechanism of incident. The mechanism of incident attempts to identify the overall action, exposure or event that best describes the circumstances that resulted in the injury. The three most significant mechanisms of incident for injuries on vessels are body stressing (muscular stress resulting from lifting or being hit by objects), falls, slips and trips, and hitting or being hit by moving objects. Other mechanisms of incident (sound and pressure, heat, electricity and environmental factors, chemicals and biological factors and mental stress) are not significant as causes of accidents on vessels.
guidance material on workplace health and safety issues. The data is also used by AMSA to inform its decision making in regard to workplace inspections. The Seacare Authority has recently provided claims incidence data to employers in the scheme to enable them to compare their own injury performance against scheme benchmarks. Employers with a safety record that is significantly worse than the scheme as a whole have been asked to explain reasons for the difference and to provide details of any remedial actions to be undertaken to improve injury performance. The Seacare Authority has recently adopted a strategic plan, Seacare 2015, to provide strategic direction for the scheme leading to 2015. A central feature of the plan is to reduce the incidence of workplace disease and injury in the Seacare scheme. In doing so, the Authority will not only improve Consistent with the most common causes of accidents, the health and wellbeing of Australian seafarers but also the most common nature of injury sustained by seafarers contribute to improved efficiency in the Australian shipping is sprains and strains (traumatic joint/ligament and muscle/ industry by reducing the incidence of workplace injuries and tendon injury), which accounted for 60 per cent of the injuries the cost of workers’ compensation insurance.
Autumn 2012 I Shipping Australia Limited 29 Accident prevention
May 9, 2011: ABC News Melbourne: An overloaded forklift lies in a container yard in West Melbourne after its load tipped it forward.
February 25, 2011: Longshore & Shipping News: ‘Near miss’ at Australian wharf as Ports and Harbors joins 28-tonne container falls. “The container that fell 12 metres and narrowly missed two workers was severely overloaded and the campaign for weighing third accident this month at Darwin Port. Two workers at the Darwin Port had to run to avoid a shipping container crashing onto East Arm loaded containers Wharf at the weekend, the Maritime Union of Australia says. The container was listed as four tonnes, but the Maritime Union says it The International Association of Ports and this is feasible on a technological and weighed 28 tonnes and exceeded the crane’s Harbors has joined efforts to encourage commercial basis. It’s time to make this load limit.” the International Maritime Organisation global safety practice.” to amend the Safety of Life at Sea Convention to require as a condition of Torben Skaanild, secretary-general of stowing a container that the ship and the BIMCO, said: “There is no sound reason to port facility have a verified weight of it. continue the wilful toleration of ignorance about containers’ actual weights.” BIMCO The association represents some 230 represents more than 120 countries with ports in 90 countries and its members members drawn from a broad range of handle nearly 80 per cent of world container traffic. stakeholders including managers, brokers, and agents. Dr Geraldine Knatz, executive director of the Port of Los Angeles, said: “Weighing The World Shipping Council, the containers is the right operational and International Chamber of Shipping and safety practice. There is substantial BIMCO have already committed their experience in the United States that support.
30 Shipping Australia Limited I Autumn 2012 June 2011: Container ship Deneb in Algeciras: The ship in this picture suffered a significant stability incident. A review after the incident found that out of the 168 containers on the load list, 16 – or roughly 1 out 10 - containers had actual weights far in excess of the declared weights. The actual weights exceeded the declared weight in a range from between 1.9 times as much as the declared weight to as much as 6.7 times the declared weight. The total, actual weight of these 16 containers was more than 278 tons above their total, declared weight of about 93 tons or 4 times higher than their declared weight.
February 2007: Container ship in Damietta: Container stack collapse due to stack overweight. The master’s incident report to the authorities notes that: “Excessively heavy units loaded in the upper tiers and that the maximum stack weight had been exceeded considerably in some rows. The effect of the overweight units was to impose excessive forces on the lashings. Further, exceeding permissible weight distribution and/ or exceeding the maximum stack weight in any stack, results in overstressed stowage/securing elements and overstressed containers”. The actual container weights were established by the devices on the gantry crane when lifting and shifting the collapsed containers. The actual container weights exceeded the declared weights by 362% (Row 08), 393% (Row 06), 407% (Row 04) and 209% (Row 02) in Bay 52 where the collapse occurred.
January 2007: MSC Napoli “About 660 containers stowed on deck, which had remained dry, were also weighed. The weights of 137 (20%) of these containers were more than 3 tonnes different from their declared weights. The largest difference was 20 tonnes, heavier than on the cargo manifest” (Source: “Report on the investigation of the structural failure of MSC Napoli”, U.K. Marine Accident Investigation Branch, Report 9/208, April 2008, p.28)
Autumn 2012 I Shipping Australia Limited 31 state happenings new south wales
The good, the bad and the indifferent
Bill Rizzi chairman of the NSW State Committee talks to a special correspondent
“Good, bad and indifferent agreements on the Port Botany and things for cargo interests Port Kembla waterfronts. and ship owners and agents The completion of the new rail lines are happening in New South in DP World’s Port Botany terminal will greatly facilitate the movement Wales,” Bill Rizzi says. of containers into and out of this terminal. The good things Hutchison Port Holdings has After protracted negotiations announced that contracts have been there have been resolutions of let for the supply of cargo working the problems which beset the equipment and that their Port Botany negotiations for new workplace terminal should become operational
32 Shipping Australia Limited I Autumn 2012 in early 2013. Thanks to the efforts by those involved with PBLIS the average time for a truck movement (i.e. gate in to gate out) at the Port Botany terminals was 38 minutes for the month of January. There are signs that this figure can be maintained.
The bad things Port productivity gained in 1998 has been lost. It’s interesting to look at recent figures which show a decline in the crane rate of over 30 per hour to around 20/21 at the present time. This compares with a rate of 40 in Singapore. It’s also interesting to compare costs. In Singapore the cost is about US$150 per lift whilst at Port Botany the cost is about US$350 per lift. Bill says “I don’t mind paying for an efficient service but I find it unacceptable to have third-world productivity. Unfortunately we have yet to find the answer to improved crane rates.” He is concerned about vessel delays due to structural work at the Patrick terminal. Old cranes are being dismantled and will be replaced by much more efficient units. Unfortunately this will reduce the number of berths available for the average-size container ships now Importers are encouraged to use more rail calling at Port Botany from three to two for an uncertain period of time. It is not always possible for a vessel to be switched from Patrick to DP decided who will pay for the weighing the corner and there is always the World so delays are on the cards and service which will be provided by need for breakbulk facilities,” he went cargo interests need to be aware that the stevedores. It has also yet to on to say. there may well be times when Sydney be decided what is to happen if the The 2011/2012 cruise season is cargo is discharged at another port. weight limit is exceeded. about over. It will end up being a Lack of understanding by cargo The government target for rail record year for vessel calls at Sydney interests of laws covering the carriage movements is 30 per cent of the and successful visits were made to of goods by sea and the Australian total flow. Bill does not see this being Newcastle. Shore excursions to the Competition and Consumer Act of achieved for a long while unless Hunter Valley vineyards and the Port 2010 is seen as a bad thing as it importers start to use rail. Stephens area injected welcome causes unnecessary friction between cash flow into the Hunter region. With regard to inland terminals Bill ship owners and their clients. says “I believe much needs to be At the time of writing there is a ship Bill says “It is realised that delays to done to influence cargo interests alongside the Port Kembla coal ships mean delays to cargo. Whilst to use inland terminals.” He loader, 12 ships at anchor awaiting every effort will be made to minimise recommends that readers obtain the berth and others are on the way. delays, cargo interests should make a copy of the SAL Metropolitan Now that the industrial problems at themselves aware of the Bill of Lading Intermodal Terminal Study which the loader have been resolved it is terms and conditions and make is available on application to the expected that the vessel queue will sure they have appropriate insurance secretariat. be cleared by mid/end March. cover should a force majeure Bill pointed out that much of the situation develop.” Other things Sydney import container cargo ends Bill said that he considered the up in the south west area at places The indifferent things decision by the State Government not such as Minto. The Government’s Cargo interests need to be aware to release port land in Newcastle for intentions for the building of the that it is likely compulsory weighing development as a coal terminal was Dombarton/Maldon rail line are being of every import container to check wise. “Although there is no immediate watched carefully in relation to the axle weights on trucks will come into need for a container terminal in the future potential of Port Kembla as the effect 1 April 2012. It has yet to be port one never knows what is around place of discharge for this cargo.
Autumn 2012 I Shipping Australia Limited 33 DAFF - Biosecurity
Documentary Clearance (or PDC). Behind the scenes Between July and December 2011, a total of 1,694 vessels were eligible for PDC which directly saved shipping lines over $420,000 in DAFF fees. changes to deliver Pre-arrival risk assessment has also helped avoid flow-on costs of any delays associated with inspections. better services The move to PDC has, however, come at a cost to DAFF Biosecurity AQIS is now DAFF – trading partners. The new identity has operations. We have experienced the advantage of an unambiguous significant rises in baseline employee Biosecurity association with the Australian and facility costs, training and new Government. Any changes we make The Australian Quarantine and systems. We need to ensure that will be implemented carefully and it Inspection Service (AQIS) has may take some time before there are we retain skilled staff in a highly changed its name to the Department any material changes in overseas competitive employment market. This of Agriculture, Fisheries and Forestry – markets. is particularly important to prevent Biosecurity (DAFF – Biosecurity). This unnecessary delays in inspections in represents an important change by There have also been changes at growth ports around Australia. the organisation away from just border a local level which will continue to protection and quarantine to embrace improve the way we engage with We have listened to and understand the management of biosecurity risks industry and our understanding of the the numerous financial pressures on across the biosecurity continuum – import cargo and shipping industry the shipping industry and have found offshore, at the border, and onshore. sectors. This includes establishment a number of efficiencies to minimise of a network of regional DAFF It has also been accompanied by increases in expenses. changes to DAFF’s organisational Biosecurity managers, and a Regional structure which integrates science, Stakeholder Engagement Calendar to In order to help fund and maintain the policy and operational aspects of coordinate and improve engagement momentum for reform and efficiency, biosecurity and aims to provide with stakeholders in your region. This an increase to just one class of better service and delivery. For AQIS means DAFF Biosecurity officers will inspection has been proposed. The clients, the name change will not be working more closely with you to proposal would see the pratique (2 prevent avoidable biosecurity and affect the authority under which audit, hour) inspection fee for ‘higher risk’ administrative problems. inspection and certification activities vessels over 25 metres increase from are conducted and you may continue The issues you raise through DAFF $1,050 to $1,320 as from 1 July 2012. to see AQIS used for some time while Biosecurity staff and through our Importantly, the PDC fee will remain we transition as a department. website will be prioritised and at $800. In this way, eligible vessels The department will also be working addressed at a local level for more demonstrating a history of good routine operational issues, and at a with trading partners during the compliance will be rewarded with national level for issues of broader transition period. Nothing is going to less regulatory intervention and lower concern and/or national impact. This change immediately in our markets costs. overseas. The integrity and reputation will include referral of some issues attached to Australian Government to the DAFF Cargo Consultative This is the first increase in biosecurity export certification is important to our Committee which was formerly fees for two years and is consistent known as the AQIS-Industry Cargo with a risk-based approach. Better Consultative Committee (AICCC). resourcing will help deliver further Together these changes will help efficiencies in profiling, processing industry and government build on our and risk management of vessels. The partnership to improve our approach proposed increases should also help to biosecurity together. avoid reactive increases in fees should economic factors change in the near 2012 priorities future. In 2011 DAFF Biosecurity introduced We look forward to reporting more a risk-based approach to shipping clearance so that not all vessels regularly on the issues of concern require physical inspection. This to the shipping industry and approach involves assessment of demonstrating how we can work even documents, data and history of more efficiently together to protect vessels which DAFF calls Pratique Australia’s biosecurity.
34 Shipping Australia Limited I Autumn 2012 Be aware of the risks. Help protect Australia.
The Department of Agriculture, Fisheries and Forestry (DAFF) Biosecurity is part of Australia’s world-leading biosecurity system that protects our plants and animals from disease. So are you. Biosecurity is everyone’s business. www.daff.gov.au/aqis
Autumn 2012 I Shipping Australia Limited 35
AG57069 cruising Record season and more on the way
By Brett Jardine, general manager, International Cruise Council Australasia
here is no greater evidence of just For agents, it was a good opportunity to Worldwide, there is more choice than how much cruising is booming in see the varied flotilla presently on offer for ever for cruise passengers but unlike TAustralia than the record cruise Australians wanting to cruise from their before, the parade of ships is coming to season we’ve just experienced. doorstep. Australia’s shores. February, aptly dubbed a Festival of Among the 26 ships was the biggest Sydney, with its world-renowned harbour, Cruising by one cruise operator, heralded that’s ever visited Australia, Cunard’s acts as a gateway to the country, the busiest ever month of cruising in 151,400-tonne Queen Mary 2; one of the Sydney. A record 26 ships made 33 visits smaller but most luxurious ships at sea, welcoming the most traffic and heralding to the harbour over 29 days representing Seabourn Odyssey; and even visitors the tourism success story, which is the highest number of cruise ships ever to from the UK, P&O World Cruising sisters increasingly being told all around the visit Sydney in one month. Oriana, Arcadia and Aurora. nation as cruising continues to boom.
36 Shipping Australia Limited I Autumn 2012 Sydney’s impressive performance in recent years has helped make Australia one of the world’s fastest growing cruise markets. In 2010-11, there were 157 ship calls to Sydney with 210 calls forecast for 2011-12 and 246 scheduled for 2012-13. As Sydney is recognised by the international cruise industry as one of the most attractive harbour approaches in the world, the figures really shouldn’t come as a surprise. What is more notable is that while many of the world’s industries slow, the local cruise industry appears to be defying the odds. A Deloitte Access Economics study released by Australia’s largest cruise operator, Carnival Australia, at the beginning of the year revealed that by the 2019-20 season, the total spend by the cruise industry in Sydney will reach $1.3 billion. Total turnover in the 2010-11 year was almost $400 million.
According to the study, a significant passing parade of international ships each they are a real drawcard. increase in capacity in Sydney in the summer. How times have changed. medium term will drive average annual While ocean cruising continues to be expenditure growth of 43 per over the next With every year that passes, more ships popular, adventure cruising, or expedition two years, with total expenditure surging come to our shores, providing ever more cruising, in remote areas around Australia to $1.039 billion in 2015-16 and continuing reasons for Australians to take to the seas. and in Asia is definitely on the rise. to grow to $1.284 billion in 2019-20. And cruise lines are increasingly taking notice of the value of our local industry. But it’s the lure of the nearby South Pacific Cruise-related employment is predicted to that remains strongest. nearly triple from 3150 to 10,000 over the For the first time, Queen Mary 2, one of same period of time. the largest ocean liners in the world, not According to the Cruise Council’s latest only visited Australia this year but spent a figures, the South Pacific, with 37 per cent Meanwhile, the added value of the whole month here. of the market, remains the favourite cruise industry is predicted to rise from $350 destination, while Australia ranked second million to more than $1.1 billion over the Queen Mary 2’s maiden circumnavigation with a 19 per cent share of the market. next eight years. of Australia in February represented the first time the liner had been based outside New Zealand, only a short trip across the We’re eagerly awaiting the next round her northern hemisphere homeports of Tasman, accounted for 10 per cent of the of the International Cruise Council Southampton and New York. market. Australasia’s cruise statistics for 2011, which are due at the end of April. Her three week voyage around Australia With most destinations around the globe offered a very attractive alternative to the experiencing growth, it’s becoming more According to the Cruise Council’s latest traditional “grey nomad” caravan route. and more evident that cruising is the best figures, the number of Australians who way to see the world. While we know took a cruise holiday in 2010 reached a But it’s not only the itineraries that Australia has been experiencing a boom, record 466,692 – a 27 per cent increase appeal – modern day cruise ships are a the number of Australians cruising Europe on the previous year’s figure of 366,721. destination in themselves. also grew significantly, rising 51 per The 100,000 rise in passenger numbers On Royal Caribbean’s Voyager of the cent from 2009-2010, while passengers represented the biggest increase in the Seas, passengers can go ice skating or cruising the Americas increased 71 per number of Australians choosing a cruise play mini golf while Carnival Spirit, which cent. holiday on record. has recently undergone a multi-million dollar refurbishment to suit the Australian Asia has traditionally been a continent It was also the eighth consecutive year of market, where it will soon be based, offers explored by land but as more cruise lines growth for the Australian cruise industry the world’s biggest waterslide at sea. offer scenic sailings around the coast and since the Cruise Council’s passenger along the rivers, more travellers are opting statistics were first compiled in 2002. As the number of Australian cruise to cruise the region. passengers continues to grow, we’ve also Overall numbers have grown by 306 per seen an expansion in the type of cruise Both ocean cruising and river cruising cent since 2002 (116,308) with an average experiences available and that’s set to have been experiencing steady growth. annual growth rate of 19 per cent. What continue in 2012. an incredible success story! Overall, the estimated annual sea days As well as traditional ocean cruising, river rose by 18 per cent to 4.72 million, Most encouragingly, the 2010 figures cruising is becoming a success story in according to the Cruise Council’s 2010 revealed that 2.1 per cent of the Australian its own right. A decade ago, river cruising figures. population took a cruise in 2010 up from wasn’t even on the map but now, not 1.7 per cent in 2009. At a time when world economies are only are Australians one of the key source slowing, cruise lines are moving full steam However, clearly there is still much scope markets of passengers, but Australian ahead in Australia. It’s the good news for growth. operators are driving the innovation in this story keeping the tourism industry afloat sector in terms of both ship design and and I look forward to many more years of It’s incredible to look back, even just 15 marketing. years, to when cruising in Australia was impressive figures as Australia continues a well-kept secret. There was one ship There are a lot of very new, very stylish to embrace the great value, relaxing sailing our waters full-time and a small ships sailing the rivers of Europe now and holiday, that is a cruise.
Autumn 2012 I Shipping Australia Limited 37 Advertorial
From tasports
TASPORTS’ CUSTOMERS THE HEART OF DECISIONS
asports is committed to improving Bay Port, Port of Devonport and Port of its ports to maximise opportunities Burnie. Tfor customers and support value- Burnie has sufficient capacity to cope adding business development and with forecast growth in commodity supply chain efficiencies. segments and the focus is on improving After two years at the helm of the the efficiency of port and rail-road Tasmanian Ports Authority, chief interchange for container and bulk executive Paul Weedon has steered the commodities. business towards a customer oriented Our Burnie Plan centres on: strategy promoting port development aligned to customer needs. • Expansion plans in response to customer demand and stakeholder “It was critical for Tasports to recognise consultation; and the value in working with its market segments to understand infrastructure • A reconfiguration of the port-rail requirements for the short, medium and interface to provide more efficient long term to ensure our port planning service delivery of freight consistent Long-term infrastructure planning was taking an approach consistent with with other transit points in Tasmania Tasports has developed a 10-Year for consistency and compatibility. our customers’ future directions,” he Infrastructure Plan informed by a said. Devonport, while just an hour east of highly comprehensive asset review and “A good example of this was recognising Burnie handles 24 per cent of the State’s condition report. our cruise and Antarctic customers and total freight including cement, fuel With an extensive asset portfolio across stakeholders’ vision for Hobart as a and containers, and is home to major its ports Tasports is focused on achieving primary destination for cruise vessels and passenger ferry Spirit of Tasmania. an efficient management system to home to southern polar research. In the past year at Devonport, Tasports prioritise projects and have a robust “We identified that our infrastructure has: forward-planning schedule to save on would need to be developed to attract operating costs. • upgraded infrastructure to support and sustain this particular market wharf based operations to benefit segment. customers; Protecting people, assets and the environment “After months of planning and • upgraded the TT-Line upper-deck consultation with our customers and key loading ramp to handle increased At Tasports we strive to achieve a zero stakeholders in this segment, the relevant highway truck loads; and balance when it comes to risk to our planning approvals have been obtained, people, customers, assets and the and construction work will commence in • Conducted dredging of berths and environment. May 2012 to redevelop Macquarie Wharf channelling silt levels to support the Shed No. 2 as a dedicated facility for ongoing ability to meet water depths Tasports Safety Management System has cruise and Antarctic customers. required for current vessels’ berthing. been externally certified and recognises our continued improvement of safety “We have embraced a strong ethos of Not restricted to seaports, Tasports systems, working towards a zero-harm stakeholder and customer engagement also owns the Devonport Airport, target. to drive results, and it’s this style of and has recently started a major business development we’re embedding refurbishment of the airport terminal, as Our new target comes on the back of a across our ports and processes.” well as upgraded security and passenger remarkable reduction rate over the past amenities. Tasports is confident that five years in TL IFR and MRIR. this investment in the airport will provide Customers inform port development Since 2006 Tasports has achieved an Tasmania’s tradelink to the world opportunities a great environment to further facilitate commercial opportunities for customers, 86 per cent reduction in Lost Time Injury Tasports is responsible for 11 ports and positive flow-on benefits for the frequency rate, and our Medical Referral Operating over 11 ports in Tasmania, we are committed to our customers, across Tasmania including the Bass Strait northwest community. Injury rate has decreased by 50 per cent. islands and has four primary ports which and superior service delivery. Paramount is the safety of our employees and form critical transport links with almost all In Bell Bay Port Tasports’ operations The future our customers. import and export freight moved by sea. centre around lift on-lift off containers and cargo, with a long-term emphasis With a number of port enhancement Our vision is focused on the development of Tasmania’s ports as global trade With Hobart celebrated as Tasmania’s on supporting short-sea container projects coming out of the design phase links for the benefit of Tasmania’s economy and community. We believe in home to cruise and Antarctic it means movement. Much of Bell Bay’s focus and redevelopment opportunities moving investing in our infrastructure for the growth of Tasports and Tasmania. core shipping business is primarily is on woodchip export and processed into the construction phase, Tasports is managed by the northern ports: Bell aluminium. preparing for the real work to begin. www.tasports.com.au 1300 366 742 TPOR4480rj
38 Shipping Australia Limited I Autumn 2012 Tasmania’s tradelink to the world
Tasmania’sOperating over 11 ports in Tasmania, tradelink we are committed to to our the customers, world and superior service delivery. Paramount is the safety of our employees and Operatingour customers. over 11 ports in Tasmania, we are committed to our customers, andOur superiorvision is servicefocused delivery. on the development Paramount is theof Tasmania’s safety of our ports employees as global and trade ourlinks customers. for the benefit of Tasmania’s economy and community. We believe in Ourinvesting vision inis focusedour infrastructure on the development for the growth of Tasmania’s of Tasports ports and as Tasmania. global trade linkswww.tasports.com.au for the benefit of Tasmania’s 1300 economy366 742 and community. We believe in investing in our infrastructure for the growth of Tasports and Tasmania. TPOR4480rj www.tasports.com.au 1300 366 742 TPOR4480rj
Autumn 2012 I Shipping Australia Limited 39 EDUCATION and TRAINING
e are all probably familiar with the movement, shipping by far has the largest remark that learning often best share. This subject describes the composition Wcomes with actually doing the of the world fleet that carries that share and job. That there is much more value in doing explains differences in type and size. The something rather than just being told about origin of the demand for shipping is outlined it. That is as valid a point of view about the and examples of how demand for shipping shipping industry as it is about any other. can be measured and considerations in the That ‘doing’ does not have to be a physical supply of extra shipping capacity examined. action as perhaps in the case of training in Important aspects of building trade capacity the seagoing part of the industry, that is one from a maritime perspective are also method of learning. With shore-side jobs the explained. accumulation of information and ideas gained through targeted training programs is another Ship characteristics method. The application of ideas and use This subject concentrates more on the ship of information gained is the actual “doing”. itself describing characteristics of each type We learn from the outcomes and our future and different sectors of employment. How behaviour is changed – that, after all, is what ships are measured and various methods learning is. of expressing a ship’s capacity for cargo The new on-line course Fundamentals of explained and factors that enable the cargo capacity of some ships to be calculated the Maritime Industry that Shipping Australia are outlined. International conventions that will soon be launching focuses on building regulate draught and tonnage as well as the a foundation of shipping knowledge that role of classification societies examined. will increase understanding of the industry Various waterways that are critical to and inform action and decision-making. In international seaborne trade are identified 10 subject areas the course will present in and their importance in relation to voyage an easily accessible form, a comprehensive planning included. Much use is made of coverage of the maritime industry as shipping vocabulary. summarised below. International maritime logistics International trade The role of shipping as a facilitator of trade International trade is a complex and dynamic and its position as a link in the supply chain activity and having some understanding of are emphasised. An explanation of supply the trading environment helps explain the link chain management and logistics and how between trade and shipping. The benefits this works with cargo shipped in a container countries gain from trading and the extent is demonstrated in a supply chain mapping of involvement of countries in trade despite exercise for the student. Ways in which a some impediments that globalisation aims to liner trade service can integrate itself into a reduce are explained. The patterns of global supply chain are detailed which includes an seaborne trade activity in different cargo extended description of the operation of an groups are outlined. Australia’s position as a inland logistics centre. Containerisation, how trading nation in terms of goods traded and it works and advantages and disadvantages relations with trading partners are detailed. explained. The application of supply chain management techniques to the movement of Seaborne trade and shipping liquid and dry bulk cargoes are outlined. In terms of volume transported, international Ports – the vital link trade is vast and the nature of the goods moved, extremely varied. While other This subject concentrates on the function transport modes are involved in that of a port as an integral component of the global supply chain. Australia’s ports are located and the different ways in which ports might be classified which includes port ownership and management, are examined. The responsibilities of the port authority listed and the services to be found in most ports and what their function Further is are covered. Port statistics for major overseas ports in terms of mass tonnage and for containers are provided and compared with Australian ports. Cargo handling operations for containers, break bulk cargo, liquid bulk, Education dry bulk and RoRo are described.
The liner trade – cargo shipment For those looking to progress their career in the maritime This subject introduces the commercial aspect of industry, further education and development is essential. cargo shipped in a liner trade vessel and associated Shipping Australia’s Introduction to Shipping online documentation. The functions typically found in a liner course provides a solid foundation to those new to the company branch office are explained and how the industry and often teaches a thing or two to those who company might promote its activities. Important features already have experience. To build on that foundation of of the sales contract between the exporter and importer knowledge gained in the Introduction course the new are explained and how responsibilities might be clarified Fundamentals of the Maritime Industry course will be by the use of Incoterms. Various risks in trade are noted of benefit to anyone wishing to further increase their and how they might be covered by insurance. Cargo understanding of the maritime industry and SAL is claims procedure is outlined. Detailed explanation of the proud to have its courses recognised by the Australian functions, terms and conditions and clauses of a Bill of Maritime College in the form of course credits for further Lading including General Average and carrier liability and education. when a Letter of Indemnity might be used are outlined. Students who successfully complete both the Shipbroking and chartering Introduction to Shipping and Fundamentals of the Maritime Industry courses, are at least 18 years of age The role of the broker as an intermediary in the chartering and have worked for one year in the maritime industry, business is examined as well as other areas of broker will meet the entry criteria for the Bachelor of Business activity. Why ships are chartered and the process leading (Maritime and Logistics Management) or the Bachelor of up to the fixing of the ship and the various ways in which International Logistics (Freight Forwarding) degrees. a ship can be chartered are explained as well as ship management. Differing responsibilities of the shipowner Both degrees are available for full-time or part-time study and the charterer are identified particularly in relation in either on-campus mode or by distance education and to voyage charters, laytime, despatch and demurrage. students who successfully complete the Introduction Examples of charter party forms, differences in the uses to Shipping and Fundamentals of the Maritime Industry and important clauses are explained. The workings of the courses will receive one credit, Introduction to the shipping market, some of the characteristics of the market Maritime Industry (JNB 156) into either Bachelor Degree and how market information is obtained and used are course. outlined. Reasons for the fluctuating demand for ships to charter are suggested and differences in tanker chartering Information on each of the Degrees and the nested are explained as well as extra measures charterers Diploma and Associate Degree can be found at undertake to ensure the suitability of a tanker available for http://www.amc.edu.au/courses/logistics/undergraduate. chartering.
The maritime directory outlined. Australian legislation including the Navigation Act This subject aims to identify the major organisations 1912 is identified and important parts of that legislation that form part of the maritime industry or have some explained. Australian coastal shipping reform is mentioned involvement in maritime affairs. How international and conditions for registration of Australian ships outlined. maritime decisions are developed and how government The advantages of Open Registers and the perception of considers these and, if agreed, become part of Australian sub-standard ships under these registers are explained in law and enforced by various departments, is explained. conjunction with Port State Control measures. Maritime The responsibilities of relevant government departments security regulations and one example of the complex and border agencies in regard to shipping are outlined regulations included in the UN Convention of the Law of as well as those of state governments. Organisations the Sea, outlined. that provide services to shipping including stevedores The importance of shipping to Australia in many aspects and cargo handling companies and those with shipping cannot be overstated. In a relatively small industry in connections are identified and their services explained. terms of the number of people employed, the value The functions of P&I insurance companies and other also of having people knowing more about the industry similar organisations as well as important international in which they work and applying that knowledge in the organisations are examined. workplace also cannot be overstated. Shipping Australia has taken a big step in developing a training program that The regulatory regime in its comprehensive coverage of the industry provides a The objectives of international maritime regulations are flexible learning opportunity that is not only accessible but discussed as well as the role of the IMO. Examples of also provides the foundation of shipping knowledge the major international conventions and their purposes are industry needs.
Autumn 2012 I Shipping Australia Limited 41 Yip Nai Kong of RCL and Bill Rizzi NSW State Thescene Committee Chairman.
Brook Paviour of NYK, Colin Hall of Hyundai, Phil Coolican of GAC Australia and Denis Speyer of Swire Shipping. NSW State Committee Christmas luncheon. The Hon. Duncan Gay, MLC, Minister for Roads and Ports, Robert Furolo, MLA, Shadow Minister for Roads and Ports Shadow Minister for Citizenship & Communities and The Hon. John Ajaka MLC Parliamentary Secretary for Transport and Roads, were the guests of honour at the annual Christmas luncheon which Minister Gay described as the best event of the year. Major sponsor Sydney Ports Corporation, SAL CEO Llew Russell surprise gift sponsor Patrick, ACFS, DP presenting outgoing World and Feliba provided further support to Chairman Michael Phillips with his gift. make this event a memorable one.
Jason McGregor of Sydney Ports Corporation and Paul Nicholson of Seaway Agencies. Nicolaj Noes of Maersk, John Bradley of Hapag Lloyd and Peter Wallace of Seaway Agencies.
Richard Arrage, Melissa Collins and Nathan Cecil, Robert Wilson, Charles Street Stephen42 ThompsonShipping Australia of Middletons. Limited I Autumn 2012 and Claire Morgan of Norton White. SAL Golf celebrates its 10th gala day Some 90 golfers and supporters turned out for our 10th golf day. Held at Roseville Golf Club earlier this month the competition was won by Macquarie Telecom’s three- man team of Aaron Kruizinga, Anthony Gooding, and Paddy Hore. Close runner-up was SAL’s own team led by Steve Moxey, our publisher, plus Matthew Whittle, Kevin Swaine, and Archie Bayvel, our writer. Third came the Hamburg Sud quartet of Geoff Greenwood, Simon Gardiner, Zeljko Blazic, and John Cirjak. Despite met reports threatening rain all day, not a drop The winning team from Macquarie fell until all players had finished their round Telecom: Aaron Kruizinga, Anthony Gooding, and Paddy Hore. and were back at the clubhouse. Then it rained and didn’t stop for 24 hours. A great David Dillon, Denis Speyer, day made even better by our generous Tony Cousins, and Mark Todd - sponsors who included: Macquarie The PB Towage team. Telecom (our lead sponsor), Mediterranean Shipping Company, Patrick Stevedores, ANL Container Line, Wilhelmsen Ships Service, Svitzer Australia, Thomas Miller, Sydney Ports Corporation, PB Towage, SAL Chairman Ken Fitzpatrick, DP World. of Asiaworld Shipping, gets ready for the fray.
Mark Bellears, of DP World, Geoff Greenwood, of and Jeremy Tadman, of Hamburg Sud, hits Hapag Lloyd. the first ball of the day.
Captain Lin, of Five Star Shipping, Andrew Karas, of MSC, Claude Varnier, of Patrick, and Mark Rigoni, of Five Star Shipping
Mal Hart, Andrew O’Neill, Rolf Rasmussen, and Brian Wright - All of ANL Shipping.
Gary Beadle, of ANL, and Frank Needs - master of ceremonies and co-organiser of the golf day, with Autumn 2012 I Shipping AndrewAustralia Chittenden, Limited of43 SAL. APSA appoints Signal new executive president
t the AGM of the Australian UniQ diagnostics tools, automatic container handling at the terminal. Peak Shippers Association steering and a container position Aheld last December, Robert verification system. T & L Transport and Logistics Industry Skills Council elects new Coode was elected executive This investment builds on the 2010 chair and launches a rebranded president. He had spent many acquisition of two post-panamax TLISC years previously at Australia’s quay cranes and in addition DP largest container exporter, Murray World has purchased two new reach At its AGM on 23 November 2011, Goulburn. stakers for greater rail efficiency plus the TLISC board elected Laurie two new dedicated forklifts for empty D’Apice, president human resources, We welcome Robert’s appointment and look forward to working with him for many years. He replaced Frank Beaufort who was Royalty launches new Svitzer tug the inaugural executive president of APSA and held that post for 20 years. Her Royal Highness, Crown Princess Mary of Denmark launched on 24 Frank made a very significant and November 2011 Svitzer Australia’s newest tugboat Svitzer Marysville at effective contribution to protecting Docklands in Melbourne, in honour of the bushfire-devastated township the interests of container exporters of Marysville in country Victoria. The ceremony was also attended by in this country. We wish him a long, His Royal Highness Crown Prince Frederik of Denmark. The managing healthy and enjoyable retirement. director of Svitzer Australasia, Mark Malone, also attended the ceremony. The Svitzer Marysville was built in Victoria, weighs 250 tonnes, has a New rubber tyred gantry cranes for bollard pull of 68 tonnes, is 24.5 metres long and has a service speed of Port Botany 12.5 knots. She is powered by twin caterpillar 3516C engines. DP World Australia took delivery of four new state-of-the-art rubber tyre gantry cranes at its Port Botany container terminal last November. Ganesh Raj, senior vice president and managing director, DP World, ANZ region pointed out that the new RTGs, valued at more than $7.5 million, were fitted with the latest control technology giving improved operational speeds which will deliver increased efficiency at their Sydney terminal. They will complement the 20 existing RTGs at the terminal. The RTGs incorporate fuel efficient variant speed generator engines,
44 Shipping Australia Limited I Autumn 2012 Linfox as its chair. One of Laurie’s first official duties was to launch the new TLISC branding and associated website. The organisation is implementing its new strategic directions 2011-2014 policy.
Queensland Transport and Logistics Council appoints chief executive officer On 14 December 2011, the QTLC announced the appointment of Dr Rebecca Michael as CEO. The council has worked closely with the Queensland Department of Transport and Main Roads to deliver the Queensland integrated freight strategy released earlier in the month, with multiple national and state freight policy reforms currently underway across all modes, the council’s workload is expanding rapidly. The chairman, Neil Findlay noted that Dr Michael’s strong credentials in government relations and economics will significantly expand the council’s capacity to participate and contribute to these critical reform processes. submitted to IMO for discussion some refrigerated containers that SAL’s recent submissions at that meeting to assist were pre-trip inspected in Vietnam Since the beginning of the year, SAL Australia’s representatives to may have been re-gassed with has made the following submissions: determine the position Australia “propane contaminated” refrigerant should adopt at that symposium. gas, and it was understood that the (a) Provided comments on an (e) made representations to Denis explosions of the compressors were exposure draft of the Coastal napthine, the Victorian Minister related to a contaminated refrigerant trading Bill and the for Ports on the proposed cycle. Consequential/Transitional imposition of a port licence fee on Provisions Bill. Apparently, refrigerant manufacturers the Port of Melbourne Corporation have found counterfeit refrigerant (b) Responded to the request by (PoMC) which is intended to raise also in the Middle East and the the ACCC for comments on the $75 million in 2012/13 but at least Philippines. Svitzer application that the $1 billion dollars over 10 years ACCC should revoke the to fund infrastructure development It has now been proven that exclusive harbour towage in Victoria. refrigerant R40 was used instead of notifications for the ports of A submission was also made to R134a. The chemical reaction with Gladstone and Townsville on the the PoMC on the proposed the aluminium components of the basis that they have both grown method of collection of this tax. cooling system had resulted in an in size to support a second (f) Comments on the Australian explosive substance being found. towage operator and the exclusive delegation brief to the 16th licencing of towage services at Currently there is still no safe method meeting of the International the ports no longer outweighs the available to check the refrigerant of maritime Organisation’s (IMO) public detriments. SAL supported “at risk” units. SAL has approached Sub-Committee on Bulk Liquid the Government seeking approval to the Svitzer application. and Gases (BLG) which was carry out a halide test on refrigerant scheduled to be held on 30 (c) Provided comments on the gas bottles to detect counterfeit January to 3 February 2012. proposed Australian bio-fouling refrigerants. It does involve the management requirements. (g) the review of the Fair Work Act. purposeful emission of a minute (d) the IMO Sub-Committee on Ship amount of gas. SAL believes there Design and Equipment meeting Exploding refrigerated containers is a strong case for exemption from no. 56 was scheduled to be held Shipowners were extremely the Ozone Protection and Synthetic 13-17 February 2012 and concerned at reports of exploding Greenhouse Gas Management Act SAL has provided comment refrigerated containers in September 1989 to be granted to carry out to AMSA on numerous papers 2011. It was initially thought that halide tests.
Autumn 2012 I Shipping Australia Limited 45 AUSTRALIA Limited Annual Review for 2011 Contents annual review 2011
Minister’s introduction 48 Fremantle 104 It’s been a milestone year Infrastructure projects increase capacity and operational efficiency chairman’s report 50 Melbourne 106 The most challenging year of our time... Strong trade sets the tone for a ceo’s report 54 busy year Some good points in a dreadful year Newcastle 108 A strong focus on strategic planning state committee reports coupled with continued trade growth and New South Wales 58 investment in new port facilities has set a Queensland 60 strong foundation South Australia 64 North Queensland 110 Victoria 67 Sustainable export growth on the international liner services 70 Queensland coast Port Kembla 114 board of directors 72 Records broken for both trade and vessel visits to the port policy council members 73 Sydney 116 sal MEMBERS 74 Port Botany expansion project a major milestone SAL ORGANISATIONS 75 Tasmania 118 Border agencies Tasports remains committed to Australian Customs and Border 76 infrastructure investment Protection Service Townsville 120 Challenges, achievements and Few phrases invoke such a mixed opportunities reaction of excitement and caution as Australian Hydrographic Service RAN 80 “record capital investment” The future of nautical charting international developments and navigation FONASBA annual meeting in Sydney a 122 Australian Maritime Safety Authority 84 great success 2011 - AMSA’s year in review Navigating the politics of climate 124 Australian Maritime Safety Authority 88 change AMSA working to increase awareness of OHS notifications Maritime law Australian Transport Safety Bureau 90 New Australian civil and criminal 126 Fatal accident prompts safety review in penalties for pollution by shipowners, Australian ports charterers and operators Department of Agriculture, Fisheries 92 Flooding, drought, wildfires and their 130 and Forestry – Biosecurity potential effect on carriers Spotlight on biofouling YOUNG SHIPPING AUSTRALIA Office of Transport Security 94 Victoria 132 AUSTRALIA Limited Efficient maritime security regime relies on New South Wales 133 strong partnerships Education and training Ports Maritime Safety Queensland 135 Ports Australia 96 Australian Maritime College 136 Implementation of the National Ports Strategy – success requires an all Transport and logistics agency approach Transport for New South Wales 140 Annual Review for 2011 Brisbane 98 navigation Darwin 100 What price safety? 142 Flinders 102 Multiple ports. Multiple supply chain solutions advertisers’ list 144 ast year – 2011 - was a milestone year for maritime and land transport Lreform. The Gillard Government released Australia’s first National Ports Strategy and a draft National Freight Strategy. We added new measures to protect our marine environment and established a single national maritime safety regulator. We began rewriting the 100 year old Navigation Act. And we announced the most significant reforms to the Australian shipping industry in our nation’s history. This year will see us consolidate these reforms as we work with State and Territory governments, industry, unions and the community to reap the productivity benefits of the Labor Government’s $36 billion nation building program, the largest and most far reaching of its kind Australia has ever seen. This is a national agenda aimed squarely at boosting and sustaining the ongoing productivity of our economy, and the liveability that makes us the envy of the world.
National ports strategy Trade at our ports is predicted to triple over the next two decades so it makes great economic sense that the Australian economy enjoys the benefits from this growth. Two hundred and twenty four years after Captain Arthur Phillip off-loaded his cargo of people, animals and stores at Port Jackson the need for efficient and certain supply lines into and out of our ports is undiminished. When this Government was elected, we realised that productivity was being severely hindered by bottlenecks at our ports, rendering them incapable of servicing the resources boom costing us billions of dollars in lost export revenue. Of the 42 major ports along our coastline, Anthony Albanese 20 carry more than 90 per cent of our MINISTER’S shipping trade servicing the needs of our mining, manufacturing and primary production sectors. Given the economic INTRODUCTION importance of our ports we asked Infrastructure Australia, in partnership with the National Transport Commission, to consult across the sector and create a National Ports Strategy to ensure that our ports are served by world- class infrastructure with the flexibility to respond to growth. The National Ports Strategy is not a federal takeover or a one-size-fits- It’s been a all approach; nor does it create new bureaucratic hurdles for the commercial sector. But it does position us for the future and remove yet another obstacle towards forging a seamless, national approach to Australia’s shipping and milestone year land and portside infrastructure. The strategy is expected to be endorsed by the Council of Australian Governments (COAG) early this year.
48 Shipping Australia Limited I Autumn 2012 Shipping reform • the establishment of a Maritime disincentive to reckless or careless Workforce Development Forum behaviour. Addressing bottlenecks and improving to help build a highly-skilled port infrastructure and capacity is only maritime workforce. In January this year a ceremony part of the story. was held at Commonwealth Bay to The reform package also addresses commemorate the 100th anniversary of Without reform to our shipping sector, labour productivity. We are committed to Sir Douglas Mawson’s heroic Antarctic we will continue to be the customers of aligning Australian productivity practices expedition. Australia owes Mawson and others with no maritime capacity of our with the best in the world. A positive his expeditioners immense and lasting own. Australia’s burgeoning commodity working compact between industry and gratitude for staking our claim to this export markets provide the opportunity to unions is essential to the reform agenda. pristine, dangerous environment. Ships move up the value chain and expand our navigating Antarctic waters still face risks involvement in the international shipping The broader shipping industry reform including icebergs, sea ice and uncharted industry. Other developed countries have agenda waters. As such, the possibility of an oil embarked on extensive and successful spill is relatively high. That is why the programs to rebuild their shipping With our reforms to coastal shipping Australian Parliament late last year passed industries. They have all recognised that underway, we have also been busy on laws banning ships from carrying heavy a healthy competitive shipping sector other maritime fronts. brings great economic, security and grade oils through Antarctica. National regulator environmental benefits. Maritime labour convention No longer will operators of commercial We are not the first Labor government We have ratified the International vessels have to navigate inconsistent to recognise the importance of shipping Labour Organization’s Maritime Labour rules and standards across Australia. reform. It was the Labor Government Convention (MLC) to protect the working From 2013, one national maritime of Ben Chifley that in 1946 set up the conditions of crews working in Australian regulator will deliver one set of laws, Australian Coastal Shipping Board, later waters. The convention modernises more replacing a myriad of State and Territory called ANL, (the Australian National Line) than 60 international labour standards legislation. Gone will be the costly, time- to revive coastal freight shipping. This was going back eight decades. consuming situation whereby operators at a time when ships were in short supply crossing territorial waters between It will help ensure good working and private companies were sceptical of – say – Queensland and the Northern the future profitability of coastal services. conditions are maintained on Australian Territory require separate insurance, crew ships and that international seafarers Today, almost seven decades later, we approvals and seaworthy certificates. entering Australian ports are protected by find ourselves coming almost full circle The importance of this hard-fought for the same conditions. with Australian shipping now perilously reform cannot be over-estimated. The close to extinction. The sobering fact determined commitment of transport International maritime organization is that there are only 20 Australian leaders at COAG under the leadership of participation registered major trading ships engaging Prime Minister Gillard has produced the We have long recognised that the safety in the coastal trade. Only four Australian most significant regulatory reform to the and security of international shipping is registered vessels are dedicated to maritime sector since Federation. vital to global prosperity and requires international consensus. That’s why international. Navigation Act Rewrite – Australia is a foundation member of Our ports manage 10 per cent of the 1912 to 2012 the International Maritime Organization world’s entire sea trade. Although 99 per This year marks the 100th anniversary (IMO). We have actively participated in cent of our own trade is carried by sea, of the sinking of The Titanic. It is also the development of IMO instruments only 0.5 per cent of that cargo travels on 100 years since Australia’s Navigation for more than 60 years and have served Australian-flagged ships. Act came into being. This Act is now on the IMO Council for more than 40 outdated, the provisions convoluted and The Gillard Government is tackling this years. Our support for the adoption and the language archaic. Drafting is under head on. No-one questions Government implementation of IMO Conventions is way on a modern plain-English robust involvement in our road and rail - they almost unparalleled. As a result of the regulation with the flexibility to respond expect it. A viable shipping industry elections held in London last year, we to changes in national and international should be no different. Ships are the retained our seat on the council with the safety standards. A draft version of the lowest carbon emitters of any transport re-election of John Dauth, Australia’s new Bill is available for public comment mode and the more goods we carry along Permanent Representative to the IMO and the new legislation will be presented the blue highway, the fewer trucks crowd and High Commissioner to the United to Parliament this year. our national highways. Kingdom. Protection of the marine environment The shipping reform package that I The changes we are bringing to announced last September has been four Australia imposes high safety standards Australian shipping have not been easy years in the making and has benefited on ships to protect our environment . That from the expert input of both industry and is why we are extending the reach of the Our reform package has been complex unions. ship tracking system (REEFVTS) to cover and hard-fought. We are not doing it on the entire Great Barrier Reef. All large a whim but because it is in our nation’s It has four key elements and these will ships must regularly report their location long term interest. Our maritime industry come into effect on 1 July: and route with their progress tracked by embodies economic, environmental and security challenges and rewards. The • tax reform – a zero tax rate to radio and satellite 24 hours per day, seven need for a strong and internationally encourage investment in new and days per week. competitive Australian shipping industry more efficient ships; Our efforts to protect the reef don’t stop is obvious. • an Australian international there. Last November Parliament passed The Gillard Government’s multi-faceted shipping register to help build our reforms to existing legislation designed reform package positions Australian international fleet; to protect our marine environment. These significantly toughen the penalties shipping to take advantage of the • a new licensing regime to provide for breaches of our maritime and opportunities provided by our burgeoning clarity and transparency, to enable environmental laws. These new penalties export market and increased domestic long-term planning and set clear deliver on our 2010 election promise to transport task. It creates a platform for boundaries around the necessary protect the marine environment from rejuvenation with new jobs, opportunities role of foreign vessels in our coastal future incidents such as the grounding and prosperity that will benefit all trade; and of the Shen Neng 1. They are a clear Australians.
Autumn 2012 I Shipping Australia Limited 49 t has indeed been a privilege to have been chairman of Shipping Australia Ifor the past six years. It has grown into a strong organisation, well equipped to promote all aspects of the maritime industry in Australia and globally and importantly meet the requirements of its large and varied membership for an efficient and effective national industry association. Its ability to face and respond to the many challenges faced by the industry is not only because it has a very active and experienced secretariat including state secretaries in Queensland and Victoria but also because of the active participation of many of our individual members in the Policy Council, steering groups, state committees and chairmen of these committees in each mainland state. I am indebted to them for their selfless contributions. In my view, 2011 has been a year when SAL has faced the most challenges since its formation in 2003. The most pressing challenge was the serious congestion experienced in the container terminals at Port Botany which has cost the industry many millions of dollars and has had a cascading effect not only on other ports in Australia but ports of call overseas. In the last part of the year, SAL was actively engaged with the stevedores and with Sydney Ports Corporation in trying to find a short term solution. In October, we compiled cost data to reinforce our message to the State and Federal governments regarding the severity of this problem that we have endured for close to 18 months. Whilst congestion surcharges assist in offsetting some of the costs they are only a contribution to the overall costs incurred. SAL welcomed the final resolution after 12 months of the Patrick/MUA negotiations on a new Enterprise Based Agreement but suffered subsequently as a result of industrial disputation and work stoppages, bans and Michael Phillips other work limitations affecting general CHAIRMAN’S stevedoring and DP World container facilities throughout Australia. SAL has sought on a number of occasions REPORT to be part of the consultation process regarding shipping policy reform. Both Ports Australia and the Australian Shipowners’ Association were actively involved in the task forces established to provide detailed recommendations to the Minister on his reforms which he released on 9 September 2011. The details of, for example, the application of the Australian The most International Shipping Register will, in my view, be less than optimal as the Government did not have the benefit of the collective wisdom of our members on that particular issue and on the challenging year coastal shipping regime. We did provide information to the Department but it was unfortunate we weren’t represented, at least on the regulation task force. of our time... However, SAL was and appreciated being represented at the industry briefing sessions that were held in Canberra on 30
50 Shipping Australia Limited I Autumn 2012 November and 10 December. Whether Whilst a third stevedore should be the Victorian Parliament in December last these reforms will, in fact, lead to a viable operating in both Brisbane and Sydney by year. and internationally competitive Australian early 2013, we continue to have concerns The PoMC has written to all stakeholders merchant marine which SAL supports regarding the capacity to accept a third on setting out their current views on a cannot be determined until we have stevedore in the Port of Melbourne. possible scheme to increase charges to assessed the detail of the reform and also SAL has held a number of discussions raise the funds required ($75 million in the what productivity gains can be achieved with the Victorian Minister for Ports, first year but the objective is understood as a result of the proposed industrial Denis Napthine and we look forward to be a collection of $1 billion over 10 compact between unions and employers. to an announcement from the Victorian years). SAL objects to taxing the supply Government in relation to this important In relation to the current coastal shipping chain to raise infrastructure funds. In issue. Interestingly, the ACCC 2010/11 regime, the Fair Work Act still applies fact, there is no assurance that the funds report on stevedoring operations warned to single or continuous voyage permits will be spent on infrastructure because of risks of capacity running short at the issued to foreign flag vessels if more than it will all go into consolidated revenue. Port of Melbourne by around 2015. two single voyage permits were used in Taxing the supply chain in this fashion is the previous 12 months. Despite many In the submission SAL made on the inefficient, lacks transparency and is a representations to the Government, they proposal to relocate motor vehicle costly way of raising government revenue. have refused to amend the Regulations, importing and exporting from the Port As I mentioned last year, SAL members despite the increased cost burden and of Melbourne to the Port of Geelong, remain concerned at the increasing port lower service levels being borne by the we supported the creation of a third costs around Australia, and in particular, consignors and consignees of Australian container terminal at Webb Dock East the infrastructure charges levied by empty domestic cargo carried by sea. and recommended relocation of motor container parks and the charges by the vehicles to Webb Dock West. There were stevedores in Brisbane on the trucking The decision to sell Port Botany on a a lot of issues raised in that submission companies. We published a list of the long term lease basis that would need to be resolved if Geelong port cost increases over the last three is to be developed to efficiently and years in the Spring edition of the Shipping Shipping Australia was concerned at the productively provide for the significant Australia magazine. decision by the NSW Government to sell motor vehicle trade that currently uses Port Botany by 2013 on the basis of a Melbourne. Overloaded containers 99-year lease similar to what occurred in Brisbane. SAL disagreed with the sale During the year, the Victorian Government As mentioned in last year’s report, SAL of the Port of Brisbane and given the announced the proposal to scrap has been actively engaged with all subsequent cost increases by stevedores the previous government’s Freight stakeholders including the previous Road and empty container parks, as a result (in Infrastructure Charge on trucking and Traffic Authority of NSW (now Roads their view) of very significant increases in companies serving the Port of Melbourne and Maritime Services) regarding the land rentals, it appears to us that concern and instead impose a new port licence requirement to build weighbridges in the was justified. The major container ports fee on the Port of Melbourne Corporation container terminals at Port Botany. The in Australia are in a very strong market to be recovered via their normal fees new NSW Government took an active position with the exception of Adelaide and charges. Legislative backing for the interest in this issue and we commend which competes with Melbourne. There is proposed licence fee was introduced into the Minister for Roads and Ports for his some marginal competition, for example, exports from northern NSW can go through Brisbane, rather than Sydney and similarly exports in the southern region of NSW can go via Melbourne. For container imports and many exports there is no real alternative to Sydney. We look forward to discussing this issue further with the NSW Government. There was no consultation with any stakeholders, as far as we can understand, prior to the decision being taken. In particular, we would like to know whether other options such as a possible public private partnership arrangement were considered. Another issue of significance is how the current Port Botany Landside Improvement Strategy which is backed by government regulation will be applied in a pure private enterprise environment.
Australian ports and infrastructure Shipping Australia was supportive of the national port development strategy and we welcome the recommendations being accepted by the Council of Australian Governments. We are also working with Infrastructure Australia on the national freight development strategy. The development of a third container terminal at Port Botany was a major achievement for the Government and in particular, Sydney Ports Corporation.
Autumn 2012 I Shipping Australia Limited 51 intervention which resulted in agreement satisfied that the likely benefit to the public many government agencies and the on weigh-in motion systems rather than of the notified conduct will outweigh the Australian Transport Safety Bureau is a static weighbridges being built in the likely detriment to the public. case in point. terminals which is a much more practical SAL continues to monitor introduction of We have also made many submissions to and less costly result. Weighing will the Containerchain system very closely government and parliamentary enquiries only apply to import containers. SAL and is concerned that any fee should during 2011. has been supportive of the Australian not be applied to bulk runs to container Government urging the International terminals because there is only one Changes to the application of GST Maritime Organisation to take up the booking and not multiple bookings. The ATO has issued a draft fact sheet issue of compulsory weighing of export Nevertheless, SAL believes that there stating that in the case of a non-resident containers by all its members and the IMO will be a substantial improvement in the seller arranging delivery of a container, the has agreed to include that proposal in their handling of empty containers in parks place of consignment is defined by the work programme. This initiative is also as a result of this initiative. We also look strongly supported by the International sales contract as, in the ATO’s view, it is forward to its application in Sydney, on the overarching agreement. The draft fact Chamber of Shipping, the World Shipping the basis of its successful operation in sheet defines the place of delivery as a Council, the International Association of Victoria. ships rail in a CIF arrangement. SAL has Ports and Harbors and BIMCO. In the latter part of this year, serious closely consulted Ernst and Young and it congestion arose in the empty container is clear that the only workable resolution Empty container parks parks in Sydney as a result of the inability will arise as a result of meeting with both Treasury and ATO in Canberra which may The Victorian Transport Association has for a period of time of Patrick Stevedores necessitate a small legislative change. continued to pressure SAL on extending to accept any reasonable volume of the working hours at empty container empties through their container terminal. An issue has also arisen in the bulk trades parks. Only two parks have extended Sydney Ports Corporation organised a with shipping agents acting on behalf of their operating hours and whilst SAL meeting which was attended by SAL non-resident ship operators and claiming supports such an extension, it has to be to seek ways and means of improving GST import tax credits. The ATO is at a cost that can be absorbed by the communications between all stakeholders continuing its work to identify whether it shipping lines and has to lead to increased to manage this final part of the container is feasible to develop a declaration form volumes of empty containers in the park supply chain. with a non-resident shipping operator, itself otherwise there will be additional advising their GST registration status and costs without increased revenue. As a The border agencies stating that they will not claim any import tax credits for that voyage allowing the first step, SAL has been very supportive SAL continues to closely engage with Australian based agent to claim the import of the Containerchain system being border agencies such as the Australian tax credits and remove any confusion and introduced to increase transparency of Maritime Safety Authority, Customs and liability. park operations and provide the parks with Border Protection, Australian Quarantine the means to determine demand for their Inspection Service (now called Department The time that has been taken to resolve services on an hourly basis. of Agriculture, Fisheries and Forestry – these issues is difficult to understand. Biosecurity), Office of Transport Security, Nine empty container parks in Melbourne Container statistics made applications to the ACCC seeking Border Protection Command and the Department of Immigration & Citizenship. immunity from the “third line forcing” SAL is working with MariTrade and Ports provisions of the Competition and Over the year, SAL was also actively Australia to review the Australian Bureau Consumer Act 2010 in regard to this involved with many government of Statistics trial on international shipping system which requires container transport departments, especially the Department of container movements, 2009-2010. SAL is very supportive of this collection being operators to notify truck arrival times at Infrastructure and Transport at the federal available in the future but it should also the parks for the pick up or drop off of level and many departments at the state include export containers and not just empty containers. The ACCC was level. Contact has been maintained with import containers.
Tsunami off the eastern coast of Japan Following the devastating floods in Queensland at the beginning of last year, we witnessed the terrible earthquake and tsunami off the eastern coast of Japan on 11 March 2011 and the subsequent damage to the Fukushima Dai-ichi Nuclear Power Plant in Japan. Warnings and information on possible repercussions were subsequently issued to merchant shipping in that area. Fortunately, as far as Australia was concerned no major problems were encountered. Our thoughts and prayers go with the families of those killed and the thousands that still remain missing.
Sale of Tradegate Services During the year, the board of Tradegate sold its electronic commerce transaction business to a management buyout team headed up by former employees Faulkner MacDonald, Dominic Coles and Stephen
52 Shipping Australia Limited I Autumn 2012 Ware. This was the same team that had A seminar was organised for 14 October provided Tradegate’s electronic commerce with presentations by the Australian services for the past decade or more. Quarantine and Inspection Service, the The new company, Commerce Plus Pty Ministry of Agriculture and Forestry in New Ltd will continue to operate and support Zealand and Sydney Ports Corporation the following services: smart imports, which all resulted in an active question import net, hazardous cargo, export net, time. Transcode, Manage mail/message Direct, internet services and payments. Finally, at the gala dinner, Mr Takazo Iigaki, chairman of the Japan Association of The new company will also have a Foreign-Trade Ship Agencies was made help desk and Commerce Plus had an honorary member of FONASBA, the agreed to maintain existing prices for highest award the federation can bestow. Tradegate members for a period of 12 months. The new limited by guarantee I would particularly like to thank our prime company, the Australian International sponsors Sydney Ports Corporation and Trade and Transport Development Fund the Australian Quarantine and Inspection Limited, effectively takes over the existing Service. In addition, our thanks go to our Tradegate Development Fund following member sponsors Hetherington Kingsbury Tradegate’s dissolution. It will fund future and McArthurs, Asiaworld Shipping, projects/developments in the international Gulf Agency Company, LBH Australia, trade and transport industry. Inchcape Shipping Services, Middletons, Newcastle Stevedores and ITIC. AMSA, FONASBA annual meeting the Institute of Chartered Shipbrokers Australia and New Zealand Branch, Svitzer SAL was proud to have organised the (Australia) and the Australian Maritime forty-second annual meeting of the Federation of National Associations College were also sponsors. of Ship Brokers and Agents over the Ken Fitzpatrick - new chairman of Re-structuring of SAL/new chairman week 10-14 October in Sydney. The Shipping Australia Limited 82 delegates from 28 countries enjoyed for 2012 the social programme involving a city During the year, the board of directors orientation tour, a welcome at Icebergs recommended to the Policy Council that at Bondi Beach, a dinner cruise on the thank my fellow directors, Simon Aynsley, the Border Agencies and Port Services harbour, a trip to the Blue Mountains and Royce Brain, Kevin Clarke, Eddy Declerq, Steering Group be dissolved along with the Taronga Zoo as well as a gala dinner Ken Fitzpatrick, Geoff Greenwood and the eCommerce Steering Group and a new on the Friday at the Cruising Yacht Club of General Steering Group be created that Nicolaj Noes. Australia. will meet when requested by members or Most sectors of the shipping industry It was not all play, and the vigorous if it has specific issues to address rather reported losses in 2011. A notable discussions in the working group sessions than scheduling meetings through the exception is the cruise shipping industry resulted in decisions/recommendations to year. A decision was made to also merge which has grown from strength to promote the interests of both ship brokers the Container Technical and Technical strength. It is hoped that demand will and shipping agents. Steering groups but on subsequent reflection and comments by members, it pick up in 2012 but it has to be said that Important issues for Australia were the the outlook at the present time is not discussion on 24 hours prior reporting was decided to retain these two separate favourable. Importantly, increasing land for the loading of containers and the steering groups. based costs and the regulatory burden on development of a single window in ports Currently we have 38 member lines shipowners serving the Australian trades which allows one entry but many users with McArthurs deciding not to re-join. will only add to the losses and threaten rather than the current duplication of Fortunately, on 1 July we had a new documentation and reporting. In addition, member, Hyundai Merchant Marine and the future viability of the operators the future availability and cost of low we certainly welcome them to the SAL concerned. One major liner operator who sulphur bunker fees, the development of team. has been involved in these trades for a the IMO biofouling issue for ships hulls very long time announced in 2011 that as well as the possible future mandatory On 30 November last year, I stood from mid 2012 it would be withdrawing requirement for the weighing of export aside as SAL chairman and the board from the liner trades world-wide. containers being debated in the IMO were of directors unanimously elected Ken also discussed. Fitzpatrick as the 2012 chairman. I In these challenging times, a united and congratulate Ken on that appointment. Other topics of interest included an strong national industry association is update on the possible ratification of the I appreciate the demands on all our time even more important. I am confident Rotherdam Rules and an update on the and the increasing workload with limited that SAL is certainly up to the task but US requirement for 100 per cent container staff resources. As mentioned in the increasing its membership and influence x-rays in countries exporting to the US. introduction, I would like to express my will only make it even more effective. I There were many other issues discussed sincere appreciation for all those that invite those shipping lines and shipping and presentations made on the current go beyond the call of duty and dedicate agents that have not joined SAL to “state of play” in the container, dry bulk their time to promoting the interests not consider doing so as a matter of priority. and tanker markets both globally and in only of Shipping Australia itself but of Australia. The FONASBA quality standard the maritime industry in Australia and I will retain an active interest in the affairs scheme for shipbrokers and agents was its massive contribution to Australia’s of SAL and do what I can to support the also highlighted. international trading task. I also wish to new chairman as a director of SAL.
Autumn 2012 I Shipping Australia Limited 53 011 was a tough year for the shipping industry in almost every 2respect. The global economic outlook worsened, almost all sectors of the shipping industry suffered financially especially with the increasing oversupply of tonnage, serious industrial disruption in Australian ports and port congestion in Sydney all added to our woes. Nevertheless, there is always some light on the horizon and I expressed the hope in this report last year that we would see some action from the seemingly endless reports and submissions that dominated 2010. There was progress in some quarters, especially in the Federal Government releasing its measures aimed at revitalising the Australian merchant marine, and the decision not to create a separate biosecurity agency as recommended in the Beale Inquiry but to retain functions within the Department of Agriculture, Fisheries and Forestry (DAFF). The Australian Quarantine Inspection Service was re-named DAFF - Biosecurity but it had already introduced a number of initiatives in its Seaports programme that were beneficial to the industry, in particular clearing low-risk vessels on documents alone, a greater use of the electronic transmission of reports and the creation of the National Co-ordination Centre which has delivered a higher level of national consistency in terms of quarantine intervention. On the export side, progress has been achieved in working towards clearing grain ships at anchor in a number of ports rather than at the berth which will speed up the loading process. In addition, new procedures have been introduced by Customs and Border Protection to speed up the vessel clearance process.
Shipping policy reform On 9 September 2011 the Minister for Infrastructure and Transport, Anthony Albanese announced the shipping reform package comprising four key elements: Llew Russell CEO’S • tax reforms to remove barriers to investment in Australian shipping and to foster the global competitiveness of the shipping REPORT industry; • Strengthen and simplify the regulatory framework with a transparent licencing regime for coastal shipping supported by clearly stated objectives; • Establishment of an Australian Some good International Shipping Register to encourage Australian companies to participate in the international trades; • Establishment of a Maritime points in a Workforce Development Forum to progress key maritime skills and training priorities. The centrepiece of the taxation package was the introduction of a tax exemption dreadful year regime for Australian ship operators which delivered an effective tax rate of zero
54 Shipping Australia Limited I Autumn 2012 on the qualifying elements of corporate income tax. Other components of the tax regime for Australian shipping included: • A tax scheme combining a reduction in the depreciation period from 20 to 10 years, a balancing charge deferral and relaxed capital gains tax provisions. • Exemption from Royalty Withholding Tax liability for foreign owners of vessels where the vessel is leased under a bareboat charter to an Australian company; and • Ensuring Australians can work in international seafaring by providing seafarers’ tax concessions for resident employers of Australian resident seafarers, who spent 91 days or more on international voyages on qualifying vessels in an income year. Aerial view of Enfield IMT site. Image courtesy of Sydney Ports Corporation The new licencing regime comprises: 2011 as part of the ITLS postgraduate proposed Enfield Intermodal Logistics • A general licence providing work experience programme. Shipping Centre, it will be necessary to run at least Australian flag vessels with Australia has hosted two previous seven 600-metre train shuttles through unrestricted access to the coastal graduates for work experience which has the port daily with 60 per cent of the train trades for a period of up to five been most successful. The graduates years. loaded to achieve 108 TEUs per round work on a project and Chi’s project was trip. It would result in a saving of almost how we can maximise the potential of • A temporary licence enabling 330 truck trips per day or 120,000 truck these inland ports or intermodal terminals, foreign flag vessels to operate in trips per year if the IMT was operating at in Sydney and Melbourne in terms of the coastal trades, subject to time, peak efficiency. trade and/or voyage conditions. advancing their commercial benefits and these licences will be available for their efficiency of operation, especially The rail reforms that Sydney Ports a period of up to 12 months. in terms of the rail operation. Her initial Corporation has been working on to paper led to us applying for project funds improve rail efficiency, once effectively • An emergency licence limited to from the Tradegate/Australian Chamber implemented, together with the cargo or passenger movements in of Industry and Commerce Cargo emergency situations. Automation Development Fund to extend recommended areas for improvement her placement for another six months in in this report will definitely increase the Features of the Australian International order to develop the ideas which emerged viability of the Enfield IMT. Shipping Register were outlined including from her initial paper. Chi completed access to the tax exemption and It appears that although Melbourne’s rail her project just before the end of 2011. other tax incentives and arrangements capacity is limited, its road infrastructure She carried out extensive research and enabling employment of foreign seafarers prepared the report on the basis of the makes feasible the operation of high at internationally competitive rates information made available to her as a productivity vehicles to and from the and conditions, consistent with the result of a thorough literature review and ports. Initial development of both road- Maritime Labour Convention and other interviews. rail and road-road IMTs is reasonable international labour treaties. There will considering current rail performance; be a requirement for a minimum of two The importance of fully utilising these IMTs however, in the long term the report’s senior Australian seafarers, preferably the will increase in time as the container ports conclusion is that Melbourne’s rail task master and chief engineer. The Maritime at both Sydney and Melbourne try to cope has to be developed to effectively relieve Workforce Development Forum will be with the increased volume of container the number of containers moved by trucks established comprising experienced traffic. In Sydney, the report found that representatives from across the maritime impediments to IMT development include to extend the life of the Port of Melbourne. and skills industries and unions to work the mismatch between the stevedores’ The report identified the following areas with the Australian Government to improve time windows and the rail paths, the for improving intermodal terminals’ skills outcomes. lack of standardisation of siding lengths viability; and excessive shunting activities at The Minister pointed out that the package stevedores’ terminals regardless of the • Better aligning of rail paths and was dependent on the unions and length of the train. Melbourne’s rail time windows employers reaching an industry compact performance was further disadvantaged • Streamlining shunting and that will deliver increased productivity by the complexity of its rail system inspection activities and the details of that compact had not and significantly low lifting productivity been made available by the end of last performed at the port. In order to • Allowing automatic underbond year. A working group in which SAL provide viable and regular rail services movements was represented met in Canberra on 30 that effectively utilise the IMT asset, November and again on 10 December to the development of rail infrastructure, • Considering whether government work through some of the details of this improvement of rail handling capacity and financial support for the early years important initiative. establishment of an efficient rail interface is required are considered essential. Financial Metropolitan Intermodal Terminal Study support from government in the early • Keeping an eye on opportunities for period leading to increased utilisation of double stacking of containers, Chi Thai, a Masters graduate from the the rail service may be required. where feasible Institute of Transport and Logistics Studies (ITLS) at the University of Sydney To transport the expected throughput • Investing in IT infrastructure and joined Shipping Australia in January of 300,000 TEUs per year through the establishing operational standards
Autumn 2012 I Shipping Australia Limited 55 • Constructing dedicated rail freight Labour Convention which was held in Department of Agriculture, Fisheries and lines that link to the IMTs and; Cairns in May of this year. It has been Forestry. called a Seafarer Bill of Rights and it is • Identifying solutions to increase a complicated instrument which will be train utilisation. International developments a major change for Port State Control The report includes the recommendation inspectors from being a safety inspector Action is being taken within the IMO that major stakeholders should be invited to looking after seafarer welfare and which is strongly supported by the to join taskforces both in Melbourne and meeting all the requirements of the Australian Government for an evaluation Sydney to address the obstacles identified Convention. SAL is supportive of Australia of how the voluntary guidelines for in this report and to consider other areas signing and ratifying this Convention biofouling management are being adhered to improve the viability of IMTs given their which is yet to enter into force. to and SAL has urged the Australian Government to wait for the results of potential to extend the life of existing We are pleased to report that with regard container terminals and also to radically to the additional $0.03 per gross tonne those assessments prior to introducing a improve the efficiency of the sea-land levy which was applied to the AMSA mandatory scheme in Australia. interface. pollution levy as a result of the Pacific The IMO has also finally approved a Adventurer incident in March last year, number of systems for the on-board The border agencies/environment the clean-up and damages have hopefully treatment of ballast water which would Customs and Border Protection has now been repaid and the levy will be be consistent with the Ballast Water reduced by $0.03 per gross tonne in the advised SAL that they are in the process Convention when it enters into force. The second quarter of 2012. of developing electronic pre-arrival PDF question of federal and state and territory forms with writeable fields for pre-arrival SAL continues to liaise closely with the jurisdictions accepting the operation vessel and crew electronic reporting. Office of Transport Security, both in terms of these systems and how they will be Until these electronic forms are available, of their strategic forum and the meetings measured is an issue for ongoing debate. Customs will accept email copies of of the consultative forum. The focus this the pre-reporting forms and work is year has been looking at future challenges At the climate change conference held being done to make sure consistency from a security perspective and how best in Durban in December last year, there is achieved nationally. A similar form to handle them. In addition, SAL made a was debate about the role of shipping in is being developed for pre-arrival detailed submission to the Parliamentary reducing C02 emissions. It was pointed advanced passenger processing which inquiry into serious and organised crime out at the conference that with the full are required from cruise vessels and on the waterfront. The report for the support of industry, governments and which include crew sign on/off forms. It Government’s consideration contained IMO have now adopted global regulations is also worth noting that Customs have 22 recommendations but SAL did not for technical and operational measures relaunched “Frontline” under the new agree that the Maritime Transport and to reduce ships’ emissions which will title of “Customs Watch” with all contact Offshore Facilities Security Act, 2003 enter into force in January 2013 and that numbers remaining the same. should include serious and organised will apply to at least 90 per cent of the crime. We stated that taskforces along After very lengthy discussions and world’s tonnage. This will greatly assist the lines of that established in NSW to negotiations, agreement was finally the industry in meeting its commitments tackle crime on the waterfront should be reached on new administrative for a 20 per cent efficiency improvement replicated in other states and territories as guidelines to apply to the AQIS Industry by 2020 and a 50 per cent improvement they are purely focussed on that particular Cargo Consultative Committee. This by 2050. and important issue. In addition, SAL is included new terms of reference and a opposed to the use of criminal intelligence Global Shipowners’ Associations are confidentiality agreement to be signed to determine if a Maritime Security united in the view that these matters by persons appointed to this committee Identification Card should be issued should be considered within the IMO to by AQIS (now Department of Agriculture, without a strong appeal provision which avoid any regional solutions being applied Fisheries and Forestry - Biosecurity). would negate its use in the first place. which would undermine an international This is seen as a model form of industry standard being established. As the consultation which AQIS hopes will apply During the year, SAL made a submission International Chamber of Shipping has to other consultative committees. SAL in relation to the proposed code updating pointed out, market based measures are is hopeful that this will allow a greater the in-water cleaning guidelines that were controversial amongst shipowners but concentration on more substantive issues introduced to replace the ANZECC Code as far as AQIS is concerned. AQIS has of Practice for Antifouling and In-water there is an argument that the high cost taken on board the feedback provided Hull Cleaning and Maintenance, 1997. We of fuel, which with the introduction of by SAL on the new electronic S-cargo have urged the early adoption of these low sulphur fuel is now set to increase and GAS processing procedures and revised guidelines to assist vessels that dramatically means that shipowners the AQIS seaports programme held may be required to clean their hulls while already have every incentive to improve industry information sessions to discuss in port but it is essential that the states their efficiency. Governments must also the expanded rollout of its streamlined and territory accept these revised in-water avoid the possibility of a modal shift, as clearance procedures, termed pratique cleaning guidelines so they can be applied excessive costs added to shipping could documentation clearance. AQIS is uniformly on a national basis. see a greater use of less carbon-efficient examining new and innovative ways of shore-based transport modes which SAL was appreciative of being consulted clearing more vessels by documentation would generate additional C02. Industry on the proposed Regulation Impact rather than actual inspection on a risk recognises it must play a constructive Statement for new Australian biofouling assessed basis. AQIS is discussing with part in these discussions. The clear management requirements which it is SAL a proposed increase in fees. preference of the majority of the shipping proposed will be introduced within the industry is for an IMO compensation fund SAL has attended two meetings of next four years. Australia is supportive of the AMSA Advisory Group in the past a regime that reduces the risk of exotic linked to fuel consumption, rather than a 12 months. It has also been heavily pests being introduced into Australia but system based on emissions trading. This involved in the stakeholder group it is really essential that this be introduced could also support research into further reviewing Australia’s national plan and internationally on a mandatory basis to efficiency improvements in the maritime national maritime emergency response ensure the majority of vessels adhere to sector. Importantly, any contribution must arrangements. A risk analysis and the new standards. The State of California be proportionate to shipping’s share of assessment report has been prepared in the US is considering a regime which total emissions and reports of a proposal and SAL looks forward to the finalisation has been highly criticised by the World for shipping to pay $25 billion a year to of this review. SAL was also represented Shipping Council and these criticisms a green fund would be totally inequitable at a regional dialogue on the Maritime have been brought to the attention of the and seen by many as a tax on trade.
56 Shipping Australia Limited I Autumn 2012 Education and training The SAL Introduction to Shipping course continues to be attractive to those who are entering the industry for the first time and we saw considerable progress in 2011 towards the development of a more advanced e-learning course entitled Fundamentals of the Maritime Industry. This will provide more detail and be more attractive for those who have had some initial experience but wish to advance their knowledge. SAL remains very interested in upgrading skills and education for the maritime industry in Australia and we will follow very closely the deliberations of the Maritime Workforce Development Forum. Young Shipping Australia 2011 was an eventful and productive year for Young Shipping Australia with both New South Wales and Victoria holding a number of well attended events. Highlights for YSA NSW include the annual CEO event with guest speakers Geoff Greenwood, managing director of Hamburg Sud and Nicholaj Noes, Alongside the overseas passenger terminal in Sydney Managing Director of Maersk Australia who both provided some invaluable the Melbourne Port Welfare Association, has been estimated that up to half the advice to the very receptive audience. BeyondBlue, the Anglican missions to cruise vessels visiting Sydney in 2015/16 Two other significant events held by YSA seafarers and the Catholic Apostleship may not be able to fit under the Harbour NSW were the PBLIS briefing and the of the Sea. The project has produced Bridge. Action is being taken by the overwhelmingly popular Intermodal and booklets (for masters) and leaflets (for Sydney Ports Corporation to upgrade the Container Logistics Tour which gave YSA non-officers) in four languages – English, Overseas Passenger Terminal and other members the opportunity to see firsthand Chinese, Tagalog and Russian - which strategies are being considered to try and the operations at P&O Trans Australia’s covers about 85 per cent of all seafarers cope with the surge in demand. However, Yennora Intermodal Terminal and their Port visiting Australia. The publications feature more long-term solutions are required and Botany Logistics Terminal. checklists to identify depressed seafarers, the Federal Government initiated a review how they can be helped, and telephone Membership for YSA Victoria reached by Dr Alan Hawke regarding the suitability hotline numbers for assistance. an impressive 80 members as a result of using the normal facility at Garden Island for another cruise terminal east of of the highly successful events held Distribution by ship visitors to seafarer which included a tour of a RO/RO vessel, centres started late 2009 in Victoria and the bridge. The results of that review are a station pier tour, port cruise and an in September 2011 by ships agents still pending. information evening on hazardous cargo members of SAL who were instrumental Meanwhile, construction of a new cruise with guest speakers from AMSA and in distributing the booklets in Dampier, terminal west of the bridge at White Maritime Law. Hedland, Fremantle, Adelaide, Kembla, Bay has begun which will replace the Sydney, Newcastle, Brisbane, Gladstone, YSA has also been recognized with temporary facilities at Barangaroo. Mackay, Townsville and Cairns. The several members receiving nominations material has been put on board about I would like to take this opportunity of for the Lloyds List Australia New 2,000 ships with this total expected expressing my appreciation for all those Generation award. Paul Alexander of SAL to increase markedly with other ships representatives of our membership who was the proud winner of the award for his agents also distributing the booklets give so readily of their time and effort in work with both YSA groups and highly and leaflets. There have been cases of furthering the interests of the industry as a commended certificates were awarded seafarers seeking help as a result of these whole. I am also very appreciative of the to all nominees including Emmanuel publications. The Australian Maritime dedication of SAL staff including the state Papagiannakis, YSA NSW chairperson Welfare Society paid for the printing of secretaries in Queensland and Victoria for and Jesse Van der Tang, YSA Victoria an additional 5,000 of these booklets often going “beyond the call of duty”. chairperson. and leaflets and the project has been Equally, we are greatly assisted by a very The hard work of both committees will spear-headed by Robert Iverson, who supportive board of directors and our undoubtedly continue into 2012 with many was a former fishery biologist with the US chairman has provided strong leadership exciting events and a revamped presence National Marine Fisheries Service and now on the new Shipping Australia website to lives in Melbourne. over the past six years. I thank the help promote and spread awareness of directors, including Michael Phillips for his support and encouragement throughout YSA. Other issues 2011. I look forward to working closely Shipping Australia is proud of the Seafarer safety with the new chairman, Ken Fitzpatrick, work and effort of both YSA groups During the year, SAL made a submission and I am confident that we are up to the and continues to support this fantastic to the Seacare Authority regarding its task of meeting the many challenges that opportunity for young professionals 2015 review and I attended a seminar in we will undoubtedly face this year. to foster networking and collaboration Fremantle on how to avoid accidents on I mentioned last year that we could opportunities within the shipping industry. board vessels. not exist without the support of all our members, including our corporate Mental Health of Seafarers Cruise terminals in Sydney The future capacity of Sydney to handle associate members and I express again, This is a project started by the Rotary the future growth in cruise vessel visits my very sincere appreciation of that Club of Melbourne South, working with continued to be discussed last year. It support.
Autumn 2012 I Shipping Australia Limited 57 state committee reports NEW SOUTH WALES
By KUSHY ATHURELIYA, state secretary
he year under review followed stevedores and truck carriers to adapt The Federal Government had announced the pattern of previous years, to the new performance management a new strategy aimed at improving Twith meetings being held to framework, the system became fully the capacity of ports to cope with an discuss matters of interest to members operational with financial penalties on 28 expected tripling of trade in the next and increasing the profile of Shipping February 2011. 20 years and prevent bottlenecks that Australia and its activities. Meetings of the have hindered export growth. This was committee were also held in the SPC Port Trucks visiting Port Botany are now fitted welcomed by members, as it could Botany Expansion Office and the SPC with a Radio Frequency Identification accelerate work on NSW infrastructure project office located at the intermodal Device (RFID) which allows the capture projects such as the M5 expansion and logistics centre at Enfield to enable the movements of each truck in the other freight hubs around Sydney. To members to view developments. The NSW port precinct enabling measurement of increase rail’s share of freight haulage, State Committee under the chairmanship truck turnaround time independently the national strategy recommends higher of Bill Rizzi, ably supported by Peter and more accurately. The truck tracking charges for road users. The strategy Creeden the vice chairman, were able to system went ‘live’ in May, empowering advocates state governments and port garner the interest of the membership of terminals to view the status of trucks. The authorities having provision for buffer- SAL, which was aptly demonstrated by transparency presented by this system zones, to protect corridors of access to the significant attendance of members at is no doubt of great assistance to the ports. the meetings. terminals. The Council of Australian Governments The committee is extremely grateful A preferred location for the Truck has referred this matter to the Australian to Andrew Karas who represents Marshalling Area, which will accommodate Transport Council (now called the the committee on the Sydney Ports the marshalling of up to 50 trucks, has Standing Council for Transport and Cargo Facilitation Committee, the port been selected and is expected to be Infrastructure) for consideration. coordinator in Newcastle, Ian Dwyer and operational during 2012. Port Kembla coordinator, Fiero Mammone Shipping Australia had continually New Ports Minister for their tireless efforts in attending to supported the objectives of the strategy to SAL has met with the Hon. Duncan Gay, industry matters on behalf of members. improve productivity and efficiency of both who was appointed as the new Minister truck and rail handling in the terminals, but for Roads and Ports after the State Port Botany expansion had concerns that devoting resources to election, to discuss issues affecting the The 63-hectare third terminal named handling road and rail within stevedoring shipping industry. SAL has had a close Sydney International Container Terminal terminals may detract from the efficient working relationship with him in the past, (SICT) and the berths named ‘Hayes Dock’ handling of vessels. This concern was when he was Shadow Minister for Roads, has been handed over to Hutchison Port perhaps justified as the vessel productivity Ports and Waterways between May 2007 Holdings (HPH) for operator works. It is had been affected throughout the year. and December 2008. anticipated that the first ship will be on the The loss in productivity cannot be berth in early 2013. totally attributed to the lack of allocating Privatisation of Port Botany resources to handle vessels, as there The State Government has announced had been considerable industrial issues The State Government has announced that it is reviewing its ports’ strategy with the labour force engaged at both plans to refinance state-owned assets and has sought approval to expand Port container terminals. at Port Botany and has commenced a Botany to handle 7 million containers scoping study to investigate proceeding a year. It currently has approval for 3.2 Whilst the share of containers carried to market with a 99-year lease. The funds million containers per year. by road has increased over the years, raised will be used to fund infrastructure it appears that the share of containers projects such as an upgrade of the Pacific carried by rail has not kept pace with the Port Botany Landside Improvement Highway. increase in trade and is now down to 14 Strategy (PBLIS) per cent of the total trade, compared to 21 SAL will monitor the situation and The State Government has introduced per cent in 2005/6. endeavour to impress on the Government regulations and mandatory standards that price monitoring must be included in The previous state government had a in support of the Port Botany Landside lease conditions, as there is little doubt target of moving 40 per cent of freight by Improvement Strategy. that the buyer will be interested in a rail; this has been now been reduced to high return on investment. Members are After the final industry trial to allow 28 per cent. apprehensive that port costs will escalate
58 Shipping Australia Limited I Autumn 2012 before the port is leased to encourage introduction of a new operating system container depots. Leighton Contractors potential lessors. in November 2010 continued into the which had recently completed early beginning of 2011. works at the site, which included the Weigh bridging of containers construction of a vehicular bridge over Delays at the terminals had also been the adjacent railway marshalling yards aggravated by atrocious weather The Chain of Responsibility legislation and drainage and earthworks for the experienced at Sydney in July, which imposes obligations on the key roles or construction of a frog habitat area at a resulted in the port being closed for about positions within the transport chain to take cost of $17 million, has been awarded a 68 hours; failing infrastructure (crane rails reasonable steps to prevent breaches of $115 million contract to deliver the main at Patrick); high trade volumes; a portion the legislation. Currently, around 42 trucks construction phase. per day are in breach of allowable axle of the stacking area for containers being weight limits (severe breaches). unavailable due to planned resurfacing; Expressions of interest will be called lack of labour due to sick and other leave; to lease out the land at Enfield, not SAL has been represented in a working and industrial action taken by the Maritime controlled by Hutchinson, for construction group established to consider the Union of Australia. of warehouses etc. problems that will be faced by the industry in NSW with regard to the proposed During this period Patrick had introduced weigh-bridging of import containers measures to ameliorate the impact Southern Sydney Freight Line and has met with the Minister for Ports. of these delays and vessel bunching The Australian Rail Track Corporation Given the congestion at the container with the goal of returning the terminal has begun construction on the Southern terminals in Port Botany, members were to normal operating mode, including Sydney Freight Line, which will provide a pleased that the NSW RTA had agreed to vessel exchange being capped to below dedicated freight line for a distance of 36 implement the systems following the peak proforma volumes and empty evacuations kilometres between Macarthur and Sefton period at the end of the calendar year in being cancelled or reduced. allowing passenger and freight services order to minimise disruption to industry. Asciano and DP World have now to operate independently and improve Both terminals are in the process of reached in principle agreement with the the efficiency of rail freight services on installing weigh in motion systems to meet Maritime Union of Australia that will cover the major rail corridor linking Melbourne, the conditions of the improvement notices employees at its container terminals under Sydney and Brisbane. issued by the NSW RTA (now called a new Enterprise Based Agreement. Roads and Maritime Services). Northern Sydney Freight Corridor MUA is still negotiating with Patrick Bulk Program & General Stevedoring division as well as Cruise shipping QUBE/POAGS. Following a breakdown in The NSW and Federal governments have 153 cruise ships visited Sydney in the negotiations MUA members went on strike signed an intergovernmental agreement 2010/11 cruise season and it is estimated in December affecting POAGS terminals on the $1.1 billion jointly funded project that there will be 214 vessels in the at Melbourne, Port Kembla, Fremantle, to commence work on the Northern 2011/12 season. This number is expected Port Hedland and Bunbury. This resulted Sydney Freight Corridor program, which to reach 450 a year by 2025. in POAGS locking out 320 workers at will commence in February 2012 and be Fremantle and Bunbury and Port Kembla complete by 2016. Planning approval was given in early 2011 on that day after claiming bans imposed for the construction of a cruise passenger The Northern Sydney Freight Corridor by the Maritime Union of Australia had terminal at White Bay to cater for up to Program is an initiative to improve rendered parts of its business unviable. 170 ships per year, subject to a number capacity and reliability for freight trains of strict conditions, most significantly to Productivity remained an issue at Port on the Main North Line between North protect community amenity. Botany Container Terminals that had Strathfield and Broadmeadow, Newcastle. resulted in some shipping lines omitting The program will reduce the potential The new State Government had the port and others choosing to put their for delays on the rail network caused by conducted a review into the contentious freight onto rail between ports in an effort freight and passenger trains competing Barangaroo development, when it came to prevent further delays to importers for the same tracks between Sydney and into power. The review supported the and exporters whose businesses rely on Newcastle. headland park backed by the previous consistent services. government and the decision to relocate the cruise ship terminal to White Bay. Other issues Moorebank Intermodal Terminal Facility With the ever increasing sizes of cruise This year’s Parliamentary Luncheon was vessels, with a number of new vessels A feasibility study is being conducted hosted by the Hon. Duncan Gay, MLC, being unable to transit under the Harbour into the potential development of an Minister for Roads and Ports. At the Bridge, the industry is very keen that intermodal terminal at Moorebank luncheon held in Newcastle the Hon. John a new cruise facility is built east of the to handle container traffic from Port Ajaka, MLC, Parliamentary Secretary for bridge that could accommodate the Botany and interstate, with $70 million in Transport and Roads gave the key note needs of all cruise vessels. Members of Commonwealth Government funding. address on behalf of the Hon. Duncan Gay. SAL welcomed the Federal Government’s It will look at the development of former launch of a review into cruise ship access defence land at Moorebank in three stages The Port Kembla Port Corporation and to Garden Island. and will ultimately comprise of; a rail Newcastle Port Corporation will be link connecting the site to the Southern providing reports and as such they have Port productivity Sydney Freight Line; an intermodal not been included in this report to avoid The committee had raised concerns terminal with a capacity to handle up to duplication. with regards to berthing congestion and 1 million TEUs per annum; warehousing stevedore performance in Sydney, with and distribution facilities comprising 2 the SPC and the terminals on a regular approximately 300,000 m of warehouses basis throughout the year. A working with ancillary offices; and a freight village 2 group was formed to identify and work of approximately 8,000 m of support on the main causes for the delays and services. poor productivity. Members have been providing SPC with individual stevedore Enfield Intermodal Logistics Centre performance data, which have been The operation of the Enfield Intermodal collated by SPC and gives an overall Logistics Centre has been awarded to picture of the stevedores’ performance at Hutchison Port Holdings, which currently the two terminals. operates a number of intermodal centres The delays at DP World following the across Asia and Europe, including inland Bill Rizzi, chairman, NSW state committee
Autumn 2012 I Shipping Australia Limited 59 state committee reports Queensland
By bill guest, state secretary
n October 2011 David Hislop Jim Huggett (director pilotage and It should also be noted that the ‘baton (Hetherington Kingsbury) replaced hydrographic services MSQ) presented change’ between the Port Corporation and ISharon Ralph (American President Line) arguments relating to the justification for private enterprise has been accomplished as chairman of the SAL Queensland State increased Queensland port pilotage rates. with only marginal impact on the SAL Committee for a two year tenure. David is now chair of the Steering Committee Russell Smith (CEO of Port of Brisbane Queensland secretariat/membership. which comprises Sharon Ralph (APL), Pty Ltd) addressed members and industry While the inevitable structural changes John Widdis (MISC), Steve Pelecanos associates on the ‘Port of Brisbane – took place within the PBPL, lines of (Brisbane Marine Pilots), Matt Hollamby Opportunities for the Future’. While there communication and cooperation with were fewer presentations than in previous (Patrick Terminals), Peter Keyte (Port of port management have remained open years the objective remains to ensure Brisbane) and Bill Guest as secretary. With and constructive. Equally the PBPL have Mark Austin (Mitsui OSK) relocating to subjects of industry relevance to gain the continued to be supportive of SAL major Sydney his valuable input to the Steering most for members and invitees. Those Committee was lost and it is pleasing that invitees include senior representatives networking events. from the AC&BPS, AQIS and MSQ Russell Stuart, now with Gulf Agency Co, Despite the flood impact (and that of has rejoined the committee. whose input adds further value to these meetings. the Japan tsunami) Brisbane cargo The normal six bimonthly meetings throughputs powered ahead both in for 2011 were reduced to 5 (with the Overview imports and exports. Container volumes cancellation of the October meeting) increased with the million TEU record and consideration is to be given to just The 2009 decision of the Queensland mark (albeit empties included) being holding quarterly meetings with urgent/ Government to sell selected state-owned achieved in the latter part of the year. For timing issues to be either handled by the assets included the Port of Brisbane Steering Committee or appointed sub Corporation with a 99-year lease being exports, both cotton and coal dominated committees. awarded to Q Port Holdings (owners of with import volumes (white goods and electrical products) benefitting from the Again SAL is grateful to the new port the Port of Brisbane Pty Ltd) who took owners, the Port of Brisbane Pty Ltd control in December 2010. strong Australian dollar. Further detail can be obtained from the PBPL website – (PBPL), for the provision of most venues With a full year now under PBPL and supporting services for State management it was unfortunate that www.portbris.com.au Committee meetings. the time started so disastrously with On the downside, container ship owners/ devastating floods which engulfed The routine of these meetings, agents especially suffered as margins much of south east Queensland in commencing with presentations on issues continued to be eroded. Service provision relevant to the shipping and transport January. While there was the inevitable charges (port pilotage etc) increased with industries, continued. Presentations made apprehension about how any new owner included: would respond, it can be recorded that the addition elsewhere of various smaller PBPL port management, with MSQ, ‘access’, ‘infrastructure’ and ‘facility’ fees Paul Brandenburg (principal manager - brought the port back to virtually full which all add up! vessel traffic management) of Maritime working order within five days of the flood Safety Queensland (MSQ) provided peak. Given the huge amount of debris The arrival of the third stevedore details of the MSQ VTM system from (including 400 pontoons, 250 leisure (Hutchison Port Holdings (HPH)) in mid development to the regional extension boats, water tanks etc) deposited at the 2012 should strengthen the competitive as a result of the Shen Neng 1 grounding Fisherman Islands port entrance and the element and hopefully help to stabilise in the Douglas Shoal area of the Great silting impact, the accelerated recovery Barrier Reef. container handling costs. None the was a real compliment to those involved less those in the container trade are Peter Keyte (general manager trade and much appreciated by the shipping likely to do it tough for some time. That services PBPL) on the Brisbane post-flood community. Of added relevance was the statement is supported by the decision recovery position. A great effort both by fact that port users were best placed to MSQ and PBPL in returning the port to full make business decisions by being kept of the Malaysian International Shipping operation within five days of the January fully up to date as the recovery phases Co. (MISC) to totally withdraw from the floods. progressed. container trade by mid 2012!
60 Shipping Australia Limited I Autumn 2012 2011 issues Harbour control no major Brisbane port incidents during 2011. Queensland Shipping Information and The success of the PBPL and MSQ with Planning System (QShips) the flood recovery process has been Brisbane port security - PBPL This web-based ship management acknowledged with members being kept system, made mandatory in 2009, has informed of adjustments to the channel It might well be that the absence of any been progressively upgraded by MSQ depths following dredging operations. threat (terrorist or otherwise) has created and with input from the QShips User a more relaxed attitude by those holding Other impacting issues in 2011 centered Group has become an essential tool for all a Maritime Security Identification Card on mooring gang sizes and spacing involved with ship movements. MSQ are (MSIC). The Federal Government remains between ships alongside. to be commended for the effort devoted focused however and in December 2010 to this project. Mooring gangs – this became both introduced an updated list of background a safety and operational issue when check offences which would prevent In conjunction with MSQ, the QShips Brisbane port pilots reported inadequate certain applicants from acquiring an MSIC. data base has been utilised by the PBPL numbers within some mooring gangs. to develop the PortBris Vessel Tracker Additionally the outcomes from a more Understandably neither the PBPL or MSQ system. This system, which has been recent Federal Parliamentary Joint wanted to unnecessarily impose fixed refined during the year, enables users Committee Review has suggested even numbers and, following a moratorium on to track vessels within port limits in real tighter controls by making it mandatory the issue, the Port Procedures Manual for all employees of a company to hold time. Data is displayed through Google was amended to reflect that ‘the master/ MSICs even if only a single employee Earth and users are able to click on owner of a vessel is responsible for the needs one for business purposes. This individual vessels to obtain more detailed safety and number of mooring crews has been rejected by the shipping industry information. This system is extensively required to moor and unmoor his vessel and remains under debate. Meantime with used by the PBPL with more (pilots, safely’. There have been no adverse the approach of the five year expiry period stevedores, surveyors) coming on board reactions from ship operators. as the management value is recognized. for the original uptake Office of Transport Spacing between ships – again for safety Security (OTS) inspectors are to issue In the 2010 review it was noted that and operational reasons the regional infringement notices and fine those within QShips users had been lobbying for harbour master considered it prudent to a security zone who do not hold a valid the elimination of the Arrival/Departure increase the distance between berthed MSIC. Report which is submitted by agents who vessels from 15 to 20 metres. Although duplicate the same information within there were initial objections from QShips. It is pleasing to advise that this stevedores it was determined that the If your MSIC is close to report was abolished in late 2011. extra distance would not unduly impact expiry then renew it! SAL has also been pressing MSQ for ship operations. The new regulation the introduction of electronic invoicing applies from 1 January 2012. (EI). Invoices from MSQ (pilotage and Landside Logistics Forum (LLF) conservancy dues) are posted to agents Queensland ports pilotage Initiated and chaired by the PBPL and for each ship in/out movement and SAL members have had to contend includes industry stakeholders with the there are obvious time and economic with two rate increase in 2010 (April “main objective of improving transport advantages by moving to an email 10 per cent and Oct 10 per cent) and efficiencies within the port environs. process. It was accepted however that a further 10 per cent from 1 July 2011. “ computer systems issues, associated with Consultation has been intense with MSQ LLF/PBPL initiatives for 2011 included: the amalgamation of the Department of who have presented ‘justification’ costings a) An automated weighbridge being Transport with Main Roads, would need which have included some ‘catch up’ established at the Brisbane to be resolved before the EI project could inclusions. This has meant reluctant but multimodal Terminal (BMT). This was get any traction. That now achieved it inevitable acceptance although with the in recognition of the risks involved is disappointing that little progress has acknowledgement from MSQ that SAL in the road transport of ‘perceived’ been made even with suggested short- would prefer lower more predictable rate overweight containers into or out term solutions (scanned accounts being increases over frequent (yearly) timing of Fisherman Islands. More recently emailed to agents in PDF form) being rather that substantial hikes over a longer approval from the Queensland rejected by MSQ. While MSQ have stated period. Liaison with MSQ continues to be Department of Transport and Main the difficulties in reaching the full EI positive and it is expected that the next Roads (DTMR) was close to being process, SAL will continue to pursue to rate increase will not be before July 2012. that end. given for the movement (via ongoing class permits) of such containers Star pilots within the port environs. This will This organisation, which was set up in reduce the onus on Fisherman Islands the interests (safety and fatigue) of pilots terminal operators from having to transiting the Great Barrier Reef and install their own weighbridges to Torres Strait, remained ‘on hold’ in 2011. mitigate chain of responsibility issues. That position will continue at least until b) Problems associated with the completion of the Australian Transport container park congestion were Safety Bureau (ATSB) study into pilotage thoroughly examined within this operations within the GBR. The study forum. Suggested solutions results should be presented in early 2012. were numerous but what favoured Meantime it is worth noting the increased one section was not acceptable to GBR coverage of MSQ Vessel Traffic another and with any form of Management which was extended south vehicle booking system (VBS) in mid 2011 as a consequence of the Shen being rejected by container park Neng 1 grounding on the GBR Douglas operators. A unanimous agreement to Shoal in April 2010. work on improved communications was endorsed and bolstered by the Port incidents - PBPL use of the 1 Stop messaging system. the visual position was also David Hislop, chairman, Apart from the well documented flood enhanced by added CCTV Queensland state committee impact and recovery operation there were (webcam) coverage at the entrance
Autumn 2012 I Shipping Australia Limited 61 centralized Pratique Documentation Clearance (PDC) process. It is believed that the Federal Government decision to absorb AQIS within the Department of Agriculture, Fisheries and Forestry (DAFF) will add further productive reforms which include more partnership agreements with industry.
Coastal cargo The restrictions of coastal cargoes being lifted by international trading vessels has been more thoroughly covered in the CEO’s Report and especially the impact of the Fair Work Act. From the local perspective the Queensland Government has recognised the need for an intrastate shipping policy due to the more frequent pressures on both road and rail infrastructure and extreme weather events (floods etc) in the north of the state. 2012 will see this policy being developed through the Queensland Department of Transport & Main Roads..
Training Brisbane River in flood SAL supports industry training and while the two-day face to face ‘Introduction to the Maritime Industry’ courses will gate of a major Fisherman Islands Federal Department of Immigration & no longer be held, that course is to be container park. Citizenship. An SAL member had been converted to a web-based format to be severely reprimanded for a ship’s master available in early 2012. c) An update to ‘A guide to the proceeding ashore before the Immigration Efficient Movement of Containers Clearance was issued. This despite no Events at the Port of Brisbane’ was Customs presence until some nine hours With the dearth of corporate events, SAL completed at end 2011. after berthing! continued to hold networking functions for A major item for the LLF agenda is to While acknowledged that no crew the membership and shipping community determine transport planning for the member is to leave a ship before the during the year. future. With cargo volumes doubling over Immigration Clearance is issued, matters the next 10 years – how to cope/plan for of timing and flexibility were also affirmed In April the SAL Golf Day was held at both road and rail? Rail especially requires (minuted) for mutual acceptance. the Pacific Golf Club in Carindale and early attention as cargo movement to in October the 20th Anniversary SAL the port travels through the passenger SAL was pleased to be represented on Shipping Industry Ball at Moda Events network which will also feel the strain of a group focus panel to revitalize and Portside was attended by 326 for a increased volumes. Possibly a new rail rebrand the AC&PBS Frontline publication. memorable evening. corridor to the port? The end product ‘Customs Watch’ was launched late in 2011 with the objective In December SAL was additionally fortunate to have Russell Smith (CEO of Queensland Transport & Logistics of improving the security and commercial PBPL) address members/industry at a Council (QTLC) interests of the Australia community by intercepting prohibited substances at the luncheon. His presentation ‘The Port of Although statewide, the QTLC objectives border. Brisbane – Opportunities for the Future’ (promoting the efficiency and development provided valuable insights of PBPL of Queensland transport and logistics) are forward planning. aligned with those of the LLF with whom The public are close working relations occur. By end encouraged to use 1800 Initiatives to get Young Shipping Australia 2011 the QTLC was close to completing (YSA) underway in 2011 stalled but plans the Queensland Integrated Freight 06 1800 to report any are in place to initiate activities in 2012. Strategy which should be launched early in 2012. suspicious behaviour. 2012 objectives It is appropriate to congratulate Any perceived concerns over the Dr Rebecca Michael on her recent “Australian Quarantine & Inspection privatisation of the Port of Brisbane have appointment as CEO of the QTLC. Service (AQIS) not come to fruition and working relations AQIS personnel regularly attend State with the PBPL remain satisfactory. Indeed Australia Customs and Border Committee meetings and SAL is SAL is appreciative of the support and Protection Service. (AC&BPS). supportive of their risk assessment “ cooperation of port management. approaches and the objective to maximize SAL values the presence of senior The SAL secretariat will continue to assist electronic initiatives to gain added AC&BPS representation at SAL State members to legitimately resist or mitigate efficiencies. Committee meetings. This was especially cost increases. Aspects of ‘justification’ relevant when discussing AC&BPS Speedier clearances for at-risk Giant are to be questioned as earlier noted the attendance of first port ship arrivals African Snail (GAS) containers have number of ‘ancillary’ service charges is on at which times they represent the resulted as has a more streamlined and the increase.
62 Shipping Australia Limited I Autumn 2012 Welcome to the port waters of Geelong
Every ship that visits the Port of Geelong needs to know it can get in and out safely and efficiently.
The port handles more than 600 ships and more than 12 Million tonnes of bulk cargo. The Victorian Regional Channels Authority has invested in marine logistics and control systems to ensure safe access for all ships.
The channel has high-visibility GPS controlled lights and beacons. The VRCA’s 24/7 marine traffic management system uses equipment such as automated ship identification (AIS), very high frequency radio (VHF), mobile telephony, satellite communications and state-of-the-art real- time tide and wind sensors, available online.
A Smart Dock system enhances the ability of even the biggest ships to berth safely in all weathers. The VRCA also commissions annual hydrographic surveys.
The VRCA welcomes ships visiting the Port of Geelong.
Level 2/235 Ryrie St, Geelong / GPO Box 1135, Geelong, VIC 3220 03 5225 3500 [email protected] Autumnwww.regionalchannels.vic.gov.au 2012 I Shipping Australia Limited 63
VRC_YB12_FP.indd 1 24/01/12 10:40 AM state committee reports SOUTH AUSTRALIA
By gEOFF rOSE, vice chairman
South Australia has a mainland coast line the minutes are distributed to all shipping Year under review of 3,816 km with nine commercial ports. companies and agents. Container Terminal Monitoring Panel Flinders Ports Pty Ltd operates the (CTMP): Messrs I Henderson and K Projects/matters that have been raised following six ports under a lease Fox are the SAL representatives on this and are still to be resolved during agreement with the South Australian committee along with a broad cross Government: Port Adelaide, Thevenard, 2012: section of the industry. As the minutes Port Lincoln, Port Pirie, Wallaroo, and of these meetings are not for circulation, Port Giles. Department of Agriculture, Fisheries and Forestry - Biosecurity the SAL representative on this committee Ardrossan is owned and operated provides a general update for members by Viterra Limited. Port Bonython is • Problems supplying vessel hold as and when required. Any issues from operated by Santos. Whyalla is operated inspectors and grain terminal labour, the CTMP are raised at each quarterly by Onesteel Manufacturing. when the grain season/shipping SAL meeting. program is in full swing. Currently there are fifteen owner or liner Functions: agents and seven bulk/tramp ship agents • Inspection of grain vessels at anchor SAL incorporated a Christmas luncheon based in Adelaide. so as to be granted permission to with invited guests into the quarterly load prior to berthing. meeting held on 8 December 2011. South Australia State Steering SAL-SA Division was able to make a Committee effective 1 January 2012: We are hoping both of the above matters small donation to the local British and may be solved with the outcome from The SAL steering committee consists of International Seafarers Society with the the Ministerial Task Force which was Mr A Brundish, Five Star Shipping and proceeds from the luncheon. Agency Co Pty Ltd (chair) together with conducted during 2011 and ongoing at Messrs G Rose, Hetherington Kingsbury the time of preparing this report. Port Security Shipping Agency (vice chair); and P Flinders Ports manages all security SAL are hoping the introduction of AAOs Bates, Mitsui OSK Lines (Australia) Pty issues and any issues are bought to the (AQIS approved officers) will alleviate Ltd; I Henderson, Hamburg Sud Australia industry’s attention in a general update any labour shortage issues and result Pty Ltd; P Paparella, Asiaworld Shipping as required and the subject is also raised in the commencement of vessel grain Services Pty Ltd. at SAL’s quarterly meetings. loading inspection at anchorage. The SAL Steering Committee continues Berth Updates to meet on both a regular and when- If a vessel is able to conduct full/ Berths 1-4 Outer Harbour - This whole required basis, to promote a close all surveys whilst at anchorage it will area, including Passenger Terminal (Berth working relationship with the Australian improve the ship’s turnaround time once No. 2) is now to cater for handling cars, Customs and Border Protection Service alongside and improve the shore side (ACS); Australian Maritime Safety Ro/Ro operations and cruise ships. Other loading productivity. Authority (AMSA); DAFF - Biosecurity vessels may lay up at these berths for (DAFF); SA Department for Transport, SA Department of Environment and repairs and cleaning but no other cargo Energy and Infrastructure (DTEI) and Natural Resources operation is generally accepted at these Flinders Ports SA (FPSA). berths. Due to public pressure South Australia’s Members serve on the SA Freight Council newly appointed premier, Mr Jay General Items: 2011 cargo volumes (SAFC), Executive Committee (Chair/ Weatherill has requested a complete Vice Chair) and the Container Terminal Motor vehicles (units) Monitoring Panel (CTMP). review of the proposed South Australian Imports: 35,870 Marine Park Management Plans. Exports: 13,298 State Committee Meetings continue to be held quarterly at Flinders Ports SAL were awaiting for the review All Cargo (metric tonnes) premises. Flinders Ports also convene outcomes at the time of preparing this Imports: 6,691,117 a quarterly meeting for agents for which report. Exports: 16,559,857
64 Shipping Australia Limited I Autumn 2012 Number of port calls for 2011 was 1848. Berths 6 and 7: (DP World container terminal) Additional pavement for IMX operations was completed in January 2011. Since then no major capitals works projects have been undertaken in the past 12 months. Four straddle carriers, two reach stackers, two empty container handlers and three RAM revolving spreaders were commissioned through the year for IMX operations. Operational labour increased by 16 per cent during the past 12 months to facilitate manning nine crane gangs every 24 hours Liner Shipping Volumes continued to increase with 246,992 full TEU loading through the Flinders Ports’ new rotating spreader loading iron ore, utilising three-quarter height containers container terminal in 2011. In late 2011 MSC announced they would adjust their direct European service - load utilizing the new crane and three- east of Tumby Bay. Centrex proposes Euro Service to call Gioa Tauro (Italy) quarter height container was the MV to develop a multi-user deep water bulk and relay European exports through this Minervagracht on 8 February 2012. commodities port facility at the site. The site was chosen due to the close Mediterranean hub. In early January, No. 29 berth has previously been the MSC announced they would commence proximity of deep water (20 m) capable of preferred berth to handle scrap steel, loading Cape sized vessels. The distance calling Adelaide on their Capricorn livestock and other vessels where the Service. This service is likely to attract from the shoreline to this depth is only operations involved a large number of 500 metres. This would allow loading Asian imports as well as New Zealand truck movements (including B Doubles) exports (coverage of North and South of vessels of >160,000 tonnes capacity as the wide wharf apron is suited for with bulk commodities. Currently, South Islands) and has the ability to hub North good traffic management. American cargo through New Zealand Australia has no ports capable of loading ports. Shipping Australia is concerned that such volumes. The port is said to be as vessel traffic for hmcs and iron ore named Port Spencer. Centrex is also The terminal currently has five weekly increase general cargo and bulk vessels considering other users for this facility. services and the size of the vessels will be restricted from using No. 29 berth. calling Adelaide has increased Whyalla - Mainly imports dolomite and General cargo and bulk vessels will then coal and exports iron ore and iron and considerably in the past 12 months, up to only have berths 18, 19 and 20 available 4500 TEU capacity. steel. Project Magnet whereby Cape-size to perform operations which will create vessels are loaded off shore in Spencer Other berths difficulty to perform some operations due Gulf using barges has been operating to these wharves having a narrower wharf successfully for a number of years now Berth 8 Outer Harbour - (Viterra Grain apron. with future expansions planned. Terminal) – This purpose-built Panamax capable grain loading berth was opened Whilst 18, 19 and 20 berths are in a line Port Bonython – Mainly exports crude on 21 January 2010 and is now fully they only give a total length of 509 metres oil, condensate, propane and butane. functional. meaning three large vessels cannot berth alongside at once. Over the years general Due to the mining boom a number of Osborne Techport Australia Inner cargo tramp vessels have lost the ability mining companies are looking at ways Harbour (Defence SA owned)] - The to use wharves at 1 – 4 Outer Harbour of exporting their products but currently Australian Air Warfare Destroyers (AWD) (now dedicated to motor vehicle imports/ South Australia lacks such infrastructure. are being constructed in this area. exports). If they lose the ability to use No. The Spencer Gulf Port Link Consortium Osborne No 1 Inner Harbour - This 29, it leaves only three berths remaining are looking at building a loading facility berth is used for chemical tankers. for bulk ships and general cargo ships at Port Bonython. The proposal would operations. be to either to modify the existing wharf Berth 29 Inner Harbour - The new BHP used to load Santos products or build Billiton 10,000 m2 shed, roads, weigh Regional Ports a separate wharf to convey ore to the bridge and rail network is now complete. Thevenard handles the most variety ships. We understand there may be Flinders Ports has decided that this of cargoes compared to other bulk marine-related environmental issues berth, wharf area and surrounding loading plants/berths in South Australia. to be addressed as this area is a major land will be used as a bulk precinct. Unfortunately the entrance channel is breeding ground for the Giant Cuttlefish. The precinct will handle heavy metal only 8.2 metres deep placing a restriction consentrates (hmcs) and iron ore for on the amount of cargo a vessel can lift. Port Pirie – Main imports coal, hmcs, export plus import bulk shipments such parageothite. Main exports, hmcs. Port Lincoln – Mainly imports petroleum as sulphur, which is used in the mining products and fertilizer with main exports industry. Western Plains and Flinders Ports P/L being grains and seeds. Centrex Metals signed an agreement to ship ore through Exports of hmcs and iron ore will be done was looking at using the main jetty in Port Port Pirie. WPG Resources planned by using three-quarter height containers Lincoln to export their iron ore however to spend $50 million-plus on a train fitted with lids which will be loaded Centrex is now considering building a unloading and storage facility for export using a mobile shore crane purchased purpose built loading facility at Sheep of their iron ore. However following the by Flinders Ports and adapted with a Hill which comprises of 260 acres of sale of their iron ore assets in July 2011 rotating spreader. The first vessel to land located approximately 21 km north the project has been put on hold.
Autumn 2012 I Shipping Australia Limited 65 Unfortunately the entrance channel is only The port is operated by Viterra Limited. Due Ports must attract container operators where 6.4 metres deep placing a restriction on the to the port’s parameters, vessels of particular as tramp, bulk and general cargo business is amount of cargo a vessel can lift. configuration/specifications are best suited somewhat captive where import vessels have to call this port. Port Giles – Main exports grains and to call at the port/s declared in the charter no imports. It is a grain loading facility Wallaroo – Main import cargo is fertilizer. party to discharge and often with exports the capable of loading Panamax vessels with a Main exports grain and seeds. nature of the cargo and costs restricts the restriction of daylight berthing only in place. Wallaroo is located in a large grain growing positioning of the cargo to a more efficient Unfortunately due to volumes and seasonal area with a major grain silo complex. port. nature of the port it does not pay to position Unfortunately entrance channel and berth tugs on site, so tugs to handle ships in depth places restrictions on the amount of Shipping in South Australia needs to go to Port Giles have to transit to and from Port cargo a vessel can lift. the next level. The infrastructure in place has Adelaide. Port Adelaide vessel movements served the state well over the past 30–40 South Australia’s 2011 grain harvest was take preference over any movement years but, it will not serve the shipping estimated to be 7.9 million tonnes, the fourth requirements at Port Giles. The same applies largest on record. industry’s demands for the next 30 years and for the port of Ardrossan. This has resulted this matter needs to be addressed. in some vessels having faced lengthy delays Future port infastructure in obtaining tugs because the tugs were We still have ports for which we cannot Mining exploration is at an all-time high but occupied elsewhere during daylight and there there is no infrastructure in place at load a full load of grain on a handy max when the tugs did become available it was areas close to mine sites to handle future vessel which results in a two-port call, night and vessels can only berth at Port Giles export products. The mining industry prefers which is expensive and adds to taking away in daylight. We understand Flinders Ports is deep water ports with belt loading facilities Australia’s competitiveness. aware of this issue and they are reviewing the capable of loading cape size vessels quickly daylight berthing only procedure in an effort to reduce handling and transport costs. Ships have got larger, drafts deeper, lifting to avoid costly delays to shipping and SAL is more cargo and the infrastructure needs to Most Australian ports have dredged channels appreciative of this review. be altered or new infrastructure added to to make them deeper for the new generation Ardrossan – main exports dolomite and no container ships, but some channels that handle such vessels and cargos. One must imports. Dolomite is exported by Onesteel on handle tramp, bulk and general vessels have also remember the lead time to put these both international and coastal vessels. been left unchanged. facilities in place is lengthy.
Delivering Opportunity
The Port of Newcastle is one of Australia’s leading bulk ports. Handling a diverse trade base of over 40 different commodities, the port has the services and facilities to meet your needs. The port offers: diverse facilities suitable for a range of cargo types including dry bulk, bulk liquids, break bulk, project cargo, general cargo and containers. 11 berths allocated to general cargo. the only berth-face rail line on Australia’s east coast. excellent back-up storage options. close to Sydney with excellent road and rail connections to other parts of NSW and Australia.
As one of the most diverse regional ports, the Port of Newcastle has the expertise to manage all types of cargo. Contact our Cargo Effi ciency and Trade Improvement team for more information on your cargo solution.
Brisbane Newcastle Port Corporation (02) 4985 8222 Newcastle Sydney [email protected] www.newportcorp.com.au Melbourne NPC0439
66 Shipping Australia Limited I Autumn 2012 state committee reports Victoria
By Phil Kelly, OAM, state secretary
Office bearers Biosecurity) and AMSA representatives, Among the topics studied and pursued who also regularly attend by invitation. during 2011 were: At its meeting on 13 December 2011, the This facilitates the understanding and Victorian State Committee unanimously resolution of all tasks of mutual concern. • Freight Infrastructure Charge and re-elected Peter Bartlett, state manager its proposed replacement Port of Asiaworld Shipping Services as its The Victorian Steering Committee Licence Fee. chairman for 2012. Kon Makrakis, state comprises six members with expertise in manager of Mediterranean Shipping a broad range of shipping related areas. • Growing freight on rail with Company (Aust) Pty Ltd, was elected It meets on alternate months to VSC consequent feedback to industry. vice-chairman. and is the source of SAL representation • Food quality container shortages for on a number of State Government grain cargoes. Immediately upon his election, Peter departmental committees and working Bartlett paid tribute to the retiring groups. • Industry engagement with vice-chairman Rodney Begley, thanking him for his dedication and enormous Department of Transport to improve contribution throughout the previous five Membership of ‘outside’ and port- communications between the two years as vice-chairman, chairman and yet related working groups organisations. It is anticipated that FIEG will be given advice in advance again as vice-chairman in 2011. Victorian Freight & Logistics Council (VFLC) of proposed government studies Meetings to enable it to fulfill its role of VFLC is funded by both State and providing timely advice by its parent The Victorian State Committee (VSC) Commonwealth Governments, is chaired body, VFLC. comprises the senior officers in Victoria by a senior industry figure and maintains of all member lines and agencies and by an independent secretariat. At the • Empty container parks and invitation, corporate associate members. It invitation of the Victorian Government, implementation of ContainerChain meets at two-month intervals. David Munro (ANL Container Line) has system. been a VFLC member since its formation Our State Committee meetings have been • Port of Hastings development in 2005. enriched by the presence of AQIS (DAFF workshop. There are two other committees established under the aegis of VFLC in Whole of Port Health, Safety & which SAL Victoria is involved: Environment Committee. (WoPHSEC) Infrastructure Working Group (IWG), This group is hosted by PoMC and Formed originally as the Channel comprises a wide range of business Deepening Working Group and most and support services within the port of successful in that role, IWG’s role was Melbourne. Most of its delegates have a broadened to ascertain and report on connection with OH&S or the environment. the condition and adequacy of road and Mike Dawkins of Hamburg Sud represents rail infrastructure both in metropolitan SAL. and regional Victoria. Peter Bartlett has Customs Logistics Chain Consultative represented SAL since 2009. Committee, Victoria (CLCCC Vic) Freight Intermodal Efficiency Group (FIEG) The Victorian Regional Office of the then The prime objective of this group is to Australian Customs Service established generate ‘whole of chain’ input and this committee in order to harness the collaboration between industry and goodwill and expertise of all industry- government to identify and recommend related organisations which have some practical operational improvements to reliance on Customs procedures. intermodal efficiency across Victoria’s freight and logistics system. Tony Keunen Expert in this and in other wide-ranging Peter Bartlett, chairman, (MOL) and Phillip Edgley (Five Star) jointly fields, Meredith Adams (MOL) and Mark Victorian state committee represent SAL. Molloy (Five Star) jointly represent SAL.
Autumn 2012 I Shipping Australia Limited 67 Container trade through the port of Melbourne Despite prolonged global anxiety in the fiscal scene, the port of Melbourne continues to reflect steady growth in trade through the port, particularly notable in containerised cargoes. In summary, a comparison of the calendar years ending 31 December 2011 and the previous year portrays increased volumes with no signs of stalling. The following data does not include empty containers either imported Minister Denis Napthine, Stephen Bradford of Port of Melbourne Corporation and or exported. John Lines of ANL • For the calendar year ending 31 Engagements with Department of concerns which have been succinctly December 2010, total full TEUs Transport (DoT) outlined in Viewpoint in the early part of passed through the port numbered this edition of the SAL Magazine. 1,863,387. There was reason for the State Committee to engage with the incoming Minister for It is anticipated that PoMC will provide an • For the calendar year ending Ports and senior officers of DoT on two opportunity for frank discussion during the 31 December 2011, total full TEUs occasions during the year. month of February 2012. numbered 2,004,274. (1) The previous government plan to (2) The Feasibility Study into the possible This indicates a 7.6 per cent increase in introduce a Freight Infrastructure Charge relocation of the port of Melbourne container trade in the immediate past (FIC) drew adverse comment from Car trade and some break-bulk cargo year and strengthens the view that in light virtually all sectors of the delivery chain. to Geelong Port has caused much of population growth and the 15 years SAL expressed its full support for the consternation amongst on overwhelming of remarkably similar sustained growth Victorian Transport Association’s and proportion of stakeholders. exporters’ and importers’ argument that just prior to the 2009 global downturn, there was a complete lack of transparency Readers will recall that this topic and the planning for additional handling capacity as to where these funds, amounting disadvantages of such a re-location were within the port of Melbourne should to $1 billion generated over 10 years, the subject of my article published in the proceed without inordinate delay. would be expended. Moreover, the Summer edition of this magazine. SAL and SAL has already made its concern known proposed methodology for collection several of its members made submissions to State Government that the uncertainty was cumbersome, to say the least, and urging Government to reconsider its goal for the development of Webb Dock could unjustifiably, the onus would be upon in light of the many financial and logistical cartage contractors in a highly competitive detractions if the relocation were to hinder sea carriers’ ability to introduce environment, to recover the FIC from their proceed. even larger and longer container ships. A clients. prompt decision in the affirmative would It is understood that the Minister for Ports, also provide an opportunity for a third In its submission, SAL also argued Regional Cities, Major Projects and Racing container terminal operator to compete against the intention for empty container will announce his decision in the first at major Australian ports in the area of movements being included in the charge, quarter of 2012. stevedoring charges and productivity. pointing out their role as ship’s equipment inherent in the containerisation concept. Efficacy of Empty Container Parks SAL has profound confidence in PoMC Empty containers provided facilitation (ECPs) in and around Melbourne to provide facilities which will optimise for exports and imports, incurring re- the port’s capacity to handle predicted positioning costs without generating Following upon the work commenced trade over the next 15 years and perhaps revenue. This argument was rejected early in 2010, PoMC continued to host beyond that time. without any explanation of the rationale meetings of the ECP Working Group, the behind the decision to impose the FIC on break-through manifesting itself in the The port of Hastings, Western Port empty containers. staged introduction of the ContainerChain electronic system of data exchange. The Victorian State Committee was With the advent of a change in State By the end of 2011, nine of 11 parks Government came an announcement pleased to learn late in the year that have connected to the system. It can preliminary planning has commenced by the Minister for Ports, that the FIC be said in confidence that all parties are concept would not proceed. However, for the development of a container experiencing the benefits of transparency the Minister for Ports gave a forewarning terminal at the port of Hastings. Forward made possible by data exchange. that prior to the election, Treasury had projections for growth in container trades already included the anticipated revenue There remains room for improvement in indicate a need for an alternative port of in its Forward Estimates and it would all sectors and for its part, SAL has again discharge circa 2025 and it is assumed be necessary to replace the FIC with a emphasised to lines, the importance of that the newly-appointed Port of Hastings scheme which would generate a similar adopting EDI messaging. Authority already has this date in mind. sum, viz $1 billion over ten years. Towards the close of 2011, it was announced by PoMC that the replacement John Clarebrough of the Department of Transport Victoria, Don Smithwick of POAGS and scheme would take the form of a Port Peter Bartlett, SAL Victorian state committee chairman Licence Fee (PLF) and that PoMC would shortly announce its proposal as to the methodology for its collection. This advice quickly followed. Having assessed the alarming impact of increased port charges and grey areas in relation to the predicted yield, SAL and some of its members have since made submissions to PoMC. There are grave
68 Shipping Australia Limited I Autumn 2012 Inchcape Shipping Services
Through our network of offices in more than 50 countries we service a diversified customer base of 2,500 clients across the oil, cruise, navy, container and dry-bulk commodity sectors.
Papua
New Wewak Rabaul Guinea Madang Kimbe Lae
Port Moresby A global resource Darwin providing: Cairns Townsville • Port Agency Broome Abbot Point • Husbandry Services Port Hedland Mackay Dampiér Rockhampton • Import/Export Services Australia Gladstone • Offshore Support Services Brisbane • Bunker Coordination Geraldton Newcastle New Zealand • Ship Maintenance Fremantle Port Lincoln Sydney Kwinana Esperance Port Kembla Whangarei • Spares & Supplies Adelaide Auckland Bunbury Tauranga • Provisions & Stores Portland Melbourne New Plymouth Geelong Napier • Cash to Master Wellington Devonport Christchurch • Marine Surveys Hobart • Medical Assistance Invercargill (Bluff) • Crew Movements • Accommodation, Air Tickets & Visas A World of Local Expertise • Disbursement Accounting & Financial Management www.iss-shipping.com
Australia New Zealand Papua New Guinea Inchcape Shipping Services Pty Limited, ISS-McKay Ltd Inchcape Shipping Services Level 10, 54 Miller Street, The Shipping Exchange, Level 5, Mogoru Moto Building North Sydney, NSW 2060, Australia 2 Akaroa Street, Parnell, Auckland 1052 Champion Parade, Port Moresby Tel: +61 2 9410 8888 Tel: +64 9 3094266 Tel: +675 321 2599 Fax: +61 2 9954 0288 Fax: +64 9 3092930 Fax: +675 321 2295 E-mail: [email protected] Email: [email protected] Email: [email protected] Autumn 2012 I Shipping Australia Limited 69 International liner services
Member lines Agreements registered under Enquiries concerning specific service details should be Part X of the Competition and directed to individual member’s websites. ANL Singapore Pte Ltd www.anl.com.au Consumer act 2010 China Shipping Container Line www.cnshipping.com.au Australia/North & East Asia Trade Facilitation Agreement COSCO Container Line www.cosco.com.au Australia/South East Asia Trade Facilitation Group Hamburg Sud www.hamburgsud.com. Australia/Fiji Discussion Agreement Hyundai Merchant Marine www.hmm21.com Australia & New Zealand – United States Kawasaki Kisen Kaisha (“K” Line) www.kline.com.au Discussion Agreement MSC Mediterranean Shipping Contact Details Company S.A www.msc.com.au Mitsui O.S.K Lines (MOL) www.molpower.com Nippon Yusen Kaisha (NYK) www2.nykline.com Andrew Chittenden Orient Overseas Container General manager, Line (OOCL) www.oocl.com liner services Service details Telephone: 02 9266 9908 The range of ports covered by members south and east [email protected] coast services is as follows: Load ports Melbourne, Sydney and Brisbane (Note: Adelaide and Tasmanian ports are served via Melbourne) Kevin Swaine Discharge ports Trade policy advisor • China – Shekou, Xiamen, Yantian, Qingdao, Telephone: 02 9266 9924 Shanghai, Ningbo and Nansha
[email protected] • Hong Kong • taiwan – Kaohsiung • Japan – Yokohama and Osaka • South Korea – Busan Australia/north and east Asia Trade Other ports are served by transhipment. Facilitation Agreement (TFA) Additionally, various TFA members provide exporters a The TFA, which was registered in May 1998, aims to wide choice of weekly sailings from Fremantle to ports promote efficient and economic shipping service from across the north and east Asia region via Singapore Australia to north and east Asia. The TFA is an association of 10 member lines offering Australian exporters a variety of Australia / south east Asia Trade services from both the east and west coasts of Australia. Facilitation Group (TFG) Between the 10 member lines of the TFA, six weekly The primary objective of the TFG, which was registered in services are deployed from south and east coast 1997, is to promote efficient and economic shipping service of Australia comprising 33 vessels that provide 312 from Australia to south east Asia. The TFG is an association voyages annually with fast transit times and the most of nine member lines offering Australian exporters varied comprehensive port coverage in north and east Asia. shipping services from both the east and west coasts
70 Shipping Australia Limited I Autumn 2012 of Australia to points in Singapore, Malaysia, Indonesia, Thailand, Vietnam, Cambodia and Brunei. The scope of the agreement also covers south Asian and Gulf region destinations: Myanmar, Bangladesh, Pakistan, Sri Lanka, UAE and Saudi Arabia. Member lines Please visit member lines’ websites for detailed service information. ANL Singapore Pte Ltd www.anl.com.au APL Lines (Australia) www.apl.com Kawasaki Kisen Kaisha, Ltd www.kline.com.au Maersk Line www.maerskline.com Mitsui O.S.K Lines Ltd www.molpower.com efficient direct services from Australia and New Zealand to a range of ports on the west and east coasts of the USA, Nippon Yusen Kabushiki Kaisha www2.nyk.com.au and to other points and ports via transhipment. Orient Overseas Container Line Ltd www.oocl.com Member lines Pacific International Lines www.pilship.com Hamburg Süd www.hamburgsud.com RCL Feeder Private Ltd www.rclgroup.com Hapag Lloyd AG www.hapag-lloyd.com
Service details Maersk Line www.maerskline.com Ports serviced by TFG member lines ANL www.anl.com.au Load ports CMA CGM S.A. www.cma-cgm.com Sydney, Melbourne, Adelaide, Brisbane and Fremantle Service details - west coast USA Discharge ports The member lines operate a vessel sharing agreement Singapore, Port Kelang, Tanjung Pelepas, and Jakarta. utilizing 11 vessels sailing between Australia and west Other ports in south east Asia, south Asia, The Gulf and coast USA. 78 sailings per year are provided (52 weekly Red Sea are served by transhipment. and 26 fortnightly) with a comprehensive port range and optimum transit times. The service is divided into two port Australia / Fiji Discussion Agreement - AFDA rotation strings: Pacific north west,and Pacific south west. The AFDA is an association of ocean carriers, whose Load ports agreement was registered in 2000, providing liner Sydney, Melbourne, Adelaide , Auckland and Tauranga. services from Australia to Fiji. Member lines offer two comprehensive services to shippers utilizing six vessels Note: Fremantle and Tasmania are served via Melbourne. from Melbourne, Brisbane, Sydney and Port Kembla, Brisbane is served via Sydney or Tauranga/Auckland. Australia to Suva and Lautoka. Discharge ports The main objective of the agreement is to provide adequate, economical and efficient services from Australian Seattle, Long Beach, Oakland, and Honolulu. east Coast ports to Fiji. Service details - east coast USA Member lines The member lines provide a total of 78 sailings per year on Enquiries concerning specific service details should be their various services to the US east coast . Hamburg Süd directed to individual members’ websites. and Maersk Line operate a vessel sharing arrangement utilizing 10 vessels on a weekly service. Hapag Lloyd has Hamburg Süd www.hamburgsud.com a slot charter arrangement with Maersk Line. ANL and CMA Neptune Pacific Agency CGM separately deploy six vessels to provide a fortnightly Australia Pty Ltd www.neptunepacific.com service. Pacific Forum Line (NZ ) Ltd www.pflnz.co.nz Load ports The China Navigation Co. Pte Ltd www.swireshipping.com Sydney, Melbourne, Timaru, Port Chalmers, Napier, Auckland and Tauranga. Australia & New Zealand - United States Note: Fremantle and Tasmania are served via Melbourne, Discussion Agreement (ANZUSDA) and some lines service Brisbane via Sydney or Tauranga or ANZUSDA is an association of ocean carriers registered Auckland. Wellington is serviced via Napier and Nelson via under part X of the Competition and Consumer Act 2010 Auckland. and also with the US Federal Maritime Commission. The Discharge ports carriers provide liner shipping services from Australia and New Zealand to the USA. The main objective of the Savannah and Philadelphia and other ECNA/Gulf ports via agreement is to promote adequate, economical and transhipment at a hub port en route.
Autumn 2012 I Shipping Australia Limited 71 Board of directors for 2011
Chairman
Michael Phillips Non-executive director, Hetherington Kingsbury Shipping Agency
Simon Aynsley Directors Managing director, CMA CGM & ANL Australia Pty Ltd Agencies
Royce Brain Kevin Clarke Eddy DeClercq Senior vice-president Australia/Asia, Managing director, Mediterranean Managing director, OOCL Inchcape Shipping Services Shipping Company (Aust) Pty Limited (Australia) Pty Ltd
Ken Fitzpatrick Geoff Greenwood Nicolaj Noes Managing director, Asiaworld Shipping Managing director marketing and sales, Managing director, Maersk Services Pty Ltd Hamburg Sud Australia Pty Ltd Australia Pty Ltd Policy council members for 2011 policy council members for 2011
Front Row (from left) Colin Hall, General manager and NSW state Tony Cousins, Managing director of PB Towage Kushy Athureliya, General manager technical manager of Hyundai Merchant Marine (Australia) (Australia) Pty Ltd Pty Ltd services of Shipping Australia Limited Rob Davis, Monson Agencies Australia Pty Ltd Llew Russell, AM, Chief executive officer of Denis Speyer, Regional operations manager, Shipping Australia Limited Oceania of Swire Shipping Eddy DeClercq, Managing director of OOCL (Australia) Pty Ltd Ken Fitzpatrick, Managing director of Asiaworld Mark Rigoni, General manager of Five Star Shipping Services Pty Ltd Shipping and Agency Company Pty Ltd Kirsty Ellison, Manager of Ship Agency Gary Beadle, General manager commercial of Services Pty Ltd Back Row (from left) ANL Singapore Pte Ltd Michael Horsburgh, General manager or Steve Horton, Chief executive officer of Michael Phillips, Non-executive director of Pacific Asia Express Pty Ltd Hetherington Kingsbury Shipping Agency Hetherington Kingsbury Shipping Agency Mike Slee, Vice president of Wallenius Mark Malone, Managing director of Svitzer Second Row (from left) Wilhelmsen Logistics Australasia Pty Ltd Darren Dumbleton, Managing director of Quay John Clawley, General manager finance of Frank O. Mueller, General manager AUWC of Shipping Australia Pty Ltd Wilhelmsen Ships Service Austral Asia Line Geoff Greenwood, Managing director Phil Coolican, Managing director of Gulf marketing and sales of Hamburg Sud Australia Ted Muttiah, Managing director of APL Lines Agency Company (Australia) Pty Ltd Pty Ltd Australia Pty Ltd Bill Rizzi, State manager NSW of Mediterranean Ross McAlpine, Mediterranean Shipping Nicolaj Noes, Managing director of Maersk Shipping Company (Aust) Pty Ltd Company (Aust) Pty Ltd Australia Pty Ltd Alan Miles, Managing director of K Line Peter Wallace, Managing director of Seaway Melissa Poon, General manager of MISC Australia Pty Ltd Agencies Pty Ltd Agencies Australia Pty Ltd Brook Paviour, Director of NYK Line (Australia) Absent Pty Ltd Murray Read, Chief operating officer of Mark Austin, Managing director Australia/New Evergreen Shipping Agency (Australia) Pty Ltd Third Row (from left) Zealand of Mitsui OSK Lines (Aust) Pty Ltd Gavin Smith, Managing director of Royal Nai Kong Yip, Managing director of RCL Simon Aynsley, Managing director of CMA (Australia) Pty Ltd CGM & ANL Australia Pty Ltd Agencies Caribbean Cruises Australia John Bradley, Managing director of Hapag- Royce Brain, Senior vice-president Australia/ Johnny Tam, Managing director of LBH Lloyd (Australia) Pty Ltd Asia of Inchcape Shipping Services Australia Pty Ltd
Autumn 2012 I Shipping Australia Limited 73 SAL MEMBERS for 2011
Members as at 30 June 2011 RCL (Australia) Pty Ltd Field & Associates Pty Ltd ANL Singapore Pte Ltd Royal Caribbean Cruise Lines Flinders Ports South Australia APL Lines (Australia) Seaway Agencies Pty Ltd Fremantle Ports Asiaworld Shipping Services Ship Agency Services Pty Ltd GHD Meyrick Pty Ltd Svitzer Australasia Pty Limited Holman Fenwick Willan HFW Austral Asia Line The China Navigation Company Hutchison Ports Australia CMA CGM & ANL Australia Pte. Ltd. (Australian Branch) Pty Ltd Agencies HWL Ebsworth Wallenius Wilhelmsen Logistics Evergreen Shipping Agency Macpherson + Kelley Lawyers (Australia) Pty Ltd Wilhelmsen Ships Service Macquarie Telecom Five Star Shipping & Agency Contributing members Co Pty Ltd Middleton Moore Bevins China Shipping Container Liner Goodman Fielder Limited Newcastle Port Corporation Co. Ltd Gulf Agency Company (Australia) Newcastle Stevedores Pty Ltd Hanjin Shipping Pty Ltd Norton White Lawyers & Notaries Neptune Shipping Line Pty Ltd Hamburg Sud Australia Pty Ltd Pacific Forum Line (NZ) Ltd NSW Maritime Hapag-Lloyd (Australia) Pty Ltd OMC International Pty Ltd Hetherington Kingsbury Corporate associate Patrick Containers Shipping Agency members Hyundai Merchant Marine Peter McQueen Pty Limited Access Records Management Inchcape Shipping Services POAGS Pty Ltd AGS World Transport Indian Ocean Shipping Agencies Port Kembla Gateway Pty Ltd Associated Marine Insurers K Line (Australia) Pty Ltd Agents Pty Ltd Port Kembla Port Corporation LBH Australia Pty Ltd Australian Amalgamated Port of Brisbane Pty Ltd Terminals (AAT) Maersk Australia Pty Ltd Port of Melbourne Corporation Australian Maritime College McArthur Shipping & Agency Co Port Phillip Sea Pilots Pty Ltd Pty Ltd Australian Ship Suppliers Association Inc (ASSA) QR National Mediterranean Shipping Co (Aust) Pty Limited Australian Shipping Consultants Sea Transport Solutions Pty Ltd MISC Agencies (Australia) Pty Ltd Sydney Ports Corporation Brisbane Marine Pilots Pty Ltd Mitsui OSK Lines (Aust) Pty Ltd Thompson Clarke Shipping Chalmers Industries Pty Ltd Monson Agencies Australia Pty Ltd Pty Ltd CLSA Australia Services Pty Ltd Thomas Miller (Australasia) NYK Line (Australia) Pty Ltd Colin Biggers & Paisley Pty Ltd OOCL (Australia) Pty Ltd Coogans & Co Torres Industries Pty Ltd Pacific Asia Express Pty Ltd (PAE) Darwin Port Corporation Tradegate Australia PB Towage (Australia) Pty Ltd DP World Visy Logistics Quay Shipping Australia Pty Ltd Feliba Pty Ltd Viterra Ltd
74 Shipping Australia Limited I Autumn 2012 SAL ORGANISATIONS
Steering State Staff Groups Committees
Front row (from left) General Steering Group NSW State committee • Sharyn Flood, executive assistant to • Chairman: Llew Russell • Secretary: Kushy Athureliya chief executive officer Container Technical Steering Group • Clare Haskew, clerical assistant • Chairman: Bill Rizzi • Chairman: Peter Creeden middle row (from left) Queensland State committee • Kushy Athureliya, general manager Human Resources Steering Group • Secretary: Bill Guest technical services • Chairman: Eddy DeClercq • Llew Russell, chief executive officer • Chairman: David Hislop Maritime Legal Steering Group • Paul Alexander, policy advisor South Australia State committee Backrow (from left) • Chairman: Ken Fitzpatrick • Chairman: Alan Brundish • Bryan Sharkey, company secretary Public Relations Steering Group financial controller • Chairman: Ross McAlpine Victorian State committee • Kevin Swaine, trade policy advisor Technical Steering Group • Secretary: Phil Kelly • Andrew Chittenden, general `manager, liner services • Chairman: Ross McAlpine • Chairman: Peter Bartlett
Autumn 2012 I Shipping Australia Limited 75 Border agencies Australian Customs and Border Protection Service
Challenges, achievements and opportunities
By Michael cARMODY, chief executive officer
As a result, the importance of border The terrorist attacks also changed security to national security was our approach in thinking about recognised in 2008 when the agency risks and threats and the impact for was renamed Customs and Border Australia of events occurring in other Protection. This change reflected countries. The idea of the border our expanded role as the lead border has expanded to be a continuum protection agency and also the that encompasses activities that importance of developing a holistic occur before people board a plane n 2011, the 10 year anniversary of approach to coordinated border the September 11 terrorist attacks management, taking into account or goods are loaded onto a ship Iin the US was commemorated. traditional customs processes, destined for Australia, during the Those attacks were the first of a national security, organised crime journey and activities that happen in number of events within the last and other forms of criminality. Australia. decade that have had a significant impact both internationally and domestically. For the Australian Customs and Border Protection Service (Customs and Border Protection), the events of the last 10 years have not only shaped where we are today, but also influence our future direction. Prior to 2001, the Australian Customs Service (as it was then known) was focussed on some of the more traditional roles of customs administrations, such as the facilitation of trade and travel and collection of revenue. September 11 and the Bali bombings in 2002, along with other terrorist attacks, led to an increased focus on national security.
76 Shipping Australia Limited I Autumn 2012 This approach corresponded with the increased movement towards a global economy, creating both challenges and opportunities for border management. During the past decade globalisation, and resultant increases in trade and travel, has been the driver for many changes. Trade has not only increased in volume, but in complexity, with goods being sourced from, and travelling through more ports than ever before. Consumer spending patterns have also evolved, creating further changes to traditional trade models. The global financial crisis has spurred us (and many others) to Customs x-ray examination facility work more efficiently and effectively. During and after the floods we went 13 months, detections at CEFs In response to these challenges, to considerable effort to maintain around the country have included: Customs and Border Protection has essential Customs and Border • 448 kilograms of heroin and continually looked for opportunities Protection services, to support opium to improve our business model. disaster response and to provide Over the past 10 years we have assistance to affected industry • 396 kilograms of cocaine moved to an intelligence-led, risk- members to enable them to meet based framework that enables us their obligations while they were • 174 kilograms of amphetamines to be more responsive to current recovering from the impact of the and chemical precursors and emerging threats. We also flooding. • 82 million cigarette sticks developed the Integrated Cargo Working in partnership with industry, System, with integrated risk • 258 tonnes of tobacco we also worked hard to ensure that management capabilities. all goods required to support the In October 2011 Customs and To further support the risk emergency effort were processed Border Protection launched Customs management approach, we quickly – including food, health and Watch, the new Community implemented the Cargo Intervention medical supplies, clean-up tools and Participation Program to replace Strategy to balance resources public infrastructure equipment. Frontline and Hotline. Customs appropriately across known and Watch is an intelligence-led program The Japanese tsunami in March emerging risk areas and to reduce that facilitates industry partners 2011 and the resulting nuclear the proportion of low risk cargo and community members to report incident at Fukushima, demonstrated inspected, ensuring legitimate trade information about suspicious activity the impact of an international event is not unnecessarily interrupted. at the border. Through the new on Australia. Throughout this period, Customs and Border Protection Customs and Border Protection has invested in partnerships, both worked in consultation with relevant internationally and domestically, authorities to closely monitor and across both government and assess the developing situation. industry. We acted to provide up-to-date information to the cargo industry of All of these factors have shaped the potential risks posed by cargo today’s operating environment. coming from Japan and border Throughout 2011, we have management responses to those continued to balance our border risks. protection responsibilities while facilitating legitimate trade. Our response to these events demonstrates the commitment of 2011 Challenges and our officers who work hard to meet achievements our responsibilities, while supporting communities in need. Floods in January 2011 affected a number of states in Australia, most An important milestone was reached notably Queensland. In times of on 20 July 2011 when the millionth natural disasters, it is critical that container was x-rayed at one of our border agencies have in place Container Examination Facilities contingency plans to effectively cope (CEF), an event witnessed by the with and respond to the challenges Minister for Home Affairs at the created by such events. Melbourne CEF. Over the previous
Autumn 2012 I Shipping Australia Limited 77 and Facilitate (SAFE) global trade. In 2011, a survey was conducted with importers and exporters to determine attitudes towards an AEO. Results of the survey indicate that there is not a significant need for an Australian AEO scheme currently. These results confirm that attitudes towards an AEO have not changed since previous studies in 2007 and 2008. International developments with regard to AEO schemes will continue to be monitored by Customs and Border Protection. We recognise the importance of working with industry and our
key partner agencies to pursue Figure 2.6 - Distribution of cargo release relative to arrival has changed improvement opportunities over the last four years. that deliver enhanced border management and trade facilitation program, engagement with industry average improvement of more than outcomes. In 2011, we engaged will be more targeted, seeking two hours. with industry to identify potential to draw on their knowledge and enhancements to current cargo The TRS has demonstrated that early expertise. control and clearance arrangements. reporting supports early clearance, Customs Watch was designed by enabling border agencies to Through this process a joint body following consultation with industry complete risk assessment before of work was initiated to address stakeholders. The new tagline the cargo has arrived. In return, vulnerabilities and impediments “Help protect Australia’s border” early clearance provides traders with relating to the movement of demonstrates the agency’s focus on predictability and time to pre-arrange uncleared cargo. This included a border protection and the value of collection and inland transport. focus on promoting the link between the partnership with industry and the Earlier identification of high risk early reporting and early clearance, community. cargo means that legitimate trade is while minimising the proportion of unimpeded. uncleared cargo moving through the Enhanced Trade Solutions community. A copy of the 2010 TRS can be The Enhanced Trade Solutions found on the Customs and Border One of the outcomes of this work program was developed in 2009 Protection website using the included the publication of Australian Customs Notice (ACN 2011/58) as a response to current and following link: http://www.customs. designed to increase awareness future challenges in the end to end gov.au/site/page6067.asp. cargo environment. Included in and emphasise the importance of this initiative was a forward work The Authorised Economic Operator timely and accurate reporting. During program that included undertaking (AEO) scheme is an element of the coming year we will be doing an annual Time Release Study (TRS), the World Customs Organization’s further work with industry to improve consideration of an Authorised Framework of Standards to Secure compliance of industry reporting Economic Operator (AEO) scheme and the review of cargo control and clearance processes. The TRS measures the average time between the arrival of goods at the border and the time permission is given for the goods to enter home consumption. The 2010 TRS was published in September 2011 and is Customs and Border Protection’s fourth annual TRS. The study continues to confirm that border agency processes are not an impediment to import trade. The study found that the average elapsed time from arrival to release for sea cargo is approximately 14.5 hours, an improvement of 16 hours from the 2007 measurement. For air cargo, the interval is around four hours and forty five minutes, an
78 Shipping Australia Limited I Autumn 2012 and undertaking further scrutiny of consignments where there has been no declaration lodged within the statutory timeframe.
Opportunities Low value threshold The impact of the global financial crisis in 2008 was wide and varied. The high Australian dollar, the rise of online shopping by individuals and increases in international mail volumes led to a focus on the low value import threshold. Customs and Border Protection was a key contributor to the Productivity Commission’s 2011 report into the future of the Australian retail sector. The improvements to the anti- need to be addressed by both dumping system reaffirm Australia’s government and industry. In response to the Productivity commitment to liberalised trade, We need to meet these challenges Commission’s report, the which benefits Australian consumers today, while planning for the future. Government established a taskforce and businesses alike and helps to In 2011-12, our strategic priorities to investigate options to improve keep the economy strong. the efficiency of processing low include: Port infrastructure and intermodals value imported parcels. The • Border Risk Priorities – taskforce will consult the views of Close engagement with industry, maintaining our operational expert stakeholders, including the including port and planning focus on areas of highest risk to Customs and Border Protection, the authorities at all levels of the border. Department of Agriculture, Fisheries government continued to be and Forestry; Australia Post; the important in 2011. Customs and • Workforce – continue to support Conference of Asia Pacific Express Border Protection is committed to staff so they have the skills to Carriers; and other stakeholders, working with stakeholders as they do their job, and engage with including consumers, small business pursue infrastructure improvements the workforce at every level of and representatives groups such as to port precincts as well as the organisation. the Fair Imports Alliance. intermodal solutions. Last year we • Risk-based Planning – further Anti dumping measures contributed to, and supported the embed the intelligence-led risk approach adopted in the National based approach into our Consultation with industry was a Ports Strategy for forward planning strategic planning processes. cornerstone for improvements to of port infrastructure and improved Australia’s anti-dumping system that landside efficiency, reliability and • Intelligence and Targeting were announced by the Government safety. Initiatives under the Ports – evolve our intelligence and in 2011. The improvements have Strategy, along with planning relating targeting function so that we been designed to ensure that to intermodals, provide the agency analyse information quickly and the system is effective, modern, with an opportunity to address accurately. balanced and fair. Key features of how our existing and future border the improvements include: • Information Management management processes can be best Capability – deliver the systems 1. Better access to the aligned with regional and national and services needed to meet our anti-dumping system port developments and strategies. knowledge and information 2. Improved timeliness of the needs. Future challenges system In meeting these challenges, we The future border environment 3. Improved quality of decision recognise that we do not work presents us with many challenges. It making alone at the border and the issues is anticipated that there will continue we face require a collaborative and 4. Greater consistency with other to be significant growth in the integrated response from a range of countries volume of import cargo. Sea cargo agencies. We are currently working is projected to reach nearly 5 million 5. Stronger compliance with with partner agencies to develop the import consignments by 2020, an anti-dumping measures 2012 Strategic Border Management increase from 2.2 million in 2009-10. Plan, which will further examine our Air cargo is projected to increase Australia’s trade environment is future challenges and identify and shaped by relevant agreements to 21.7 million consignments by prioritise our capability requirements. under the World Trade Organization. 2020, up from 11 million in 2009-10. These agreements have been These projected increases have a As we work with partner agencies, established to provide remedies broad impact across a number of we also continue to work with to domestic manufacturers industries. There are also capacity industry to pursue initiatives and and producers being injured by issues relating to port environments refine processes to ensure legitimate dumped or subsidised imports. and transport infrastructure that trade is facilitated.
Autumn 2012 I Shipping Australia Limited 79 Border agencies Australian Hydrographic Service RAN
The future of nautical charting and navigation
By Mike Prince, director charting services
reduction in navigational workload in passage. comparison to use of paper charts • Appropriate information levels – through: automatically scaled levels of • Real time positioning – a ship’s detail based upon the selected position to be displayed in real ‘zoom’ level, as well as layering time in relation to the dangers and of information to permit features features around it. not relevant to immediate activities to be hidden and • Anti-grounding alarms – automatic any ship owners and recalled as required by the generation of alerts based upon a operators will, by now, have navigator. Mheard of ‘ECDIS’ and have ship’s parameters, its planned been exposed to electronic charts course and forecast movement, In recent years, studies by Det Norske in some form. Many will have also as well as depths and other Veritas and a series of Formal Safety considered this to be something ‘for factors which may affect its Assessments targeting particular the future’. However, the news is that for vessels operated under the SOLAS Convention, the phased IMO timeline for mandatory carriage of Electronic Chart Display and Information Systems (ECDIS) and use of Electronic Navigational Charts (ENCs) starts this year. The timelines for mandatory carriage extend from 2012 to 2018 in a phased process across a range of vessel types and tonnages.
Why electronic charts The earliest discussions within the IMO on requirements for electronic chart systems date back to 1986, with a clear focus on improving maritime navigation safety. A key value-added objective was a
80 Shipping Australia Limited I Autumn 2012 sections of the maritime industry went a long way in identifying the benefits of ECDIS and ENCs for IMO consideration. These industry sectors included passenger ships, oil tankers, product tankers and bulk carriers along 11 different major trading routes, the nearest being from Newcastle (Australia), to China. It was these studies that led to the IMO’s decision to introduce mandatory carriage requirements from 2012. An Australian study backs up these claims. This study was undertaken by assessing the 240 marine accident investigation reports published by the Australian Transport Safety Bureau (ATSB) over the period 1982 to 2007. Of the full range of incidents investigated, from collisions to lapses in cargo handling, 71 resulted in grounding, the largest single category. A breakdown of the primary cause of groundings is shown in the table below. In summary, 36 out of the 71 groundings investigated by the ATSB since 1982 could have been avoided by the correct use of an ECDIS using up to date ENC, if the technology had been available - a potential 50 per cent improvement. ECDIS and official ENCs, when Australia publishes around 1300 A few examples where real time compared to using traditional paper Notices to Mariners annually, each of positioning in relation to dangers charts. which have to be applied by hand to as well as the look ahead functions available in ECDIS include the MV This is because they no longer need every copy of a paper chart. It is just Peacock and the Bunga Teratai Satu. to maintain a team of chart correctors one of many nations that contribute ashore to update chart folios for charts for international shipping. Other benefits Notices to Mariners, the ability to load Correcting charts is an extremely time Additionally, it was interesting to note ENCs onto more than one system consuming task. In contrast, when comments made during presentations versus the need to acquire multiple using ENC, keeping them up to date at the most recent International ECDIS copies of key charts, and because of is as simple as loading a single update Conference. the more flexible short term licensing disk each fortnight. Speakers from a number of major arrangements possible with ENCs shipping companies advised a versus the upfront cost of outfitting a Where to from here? reduction in operating costs in using ship with paper charts. Ship owners and operators will need to develop an implementation plan for Loss of situational awareness ECDIS to meet their particular target (lost, no fixes on chart, inaccurate DR / EP, loss of fixing marks, wrong 36 timeframes. fixing marks, not paying attention) Step 1 – Find out how your fleet will be Ship handling 10 affected (wrong wheel orders, wrong rudder applied) The timetable for new build vessels is Machinery failure 9 (propulsion, steering) based on the date the vessel’s keel is laid. Existing vessels will be required Poor bridge procedures 8 to fit ECDIS in advance of the first (Ignored charts, no charts or corrections, falling asleep) survey after the implementation date. Weather 5 There are no requirements for existing (dragging anchor, excessive leeway) cargo vessels of less than 10,000 Uncharted rocks or obstructions 3 gross tons. Flag States may exempt vessels that will be taken permanently Table 1: A breakdown of the primary cause of groundings in Australian waters, out of service within two years of the 1982 – 2007. Source: Australian Transport Safety Bureau implementation date.
Autumn 2012 I Shipping Australia Limited 81 Step 2 – Consider your implementation The number of options for supply of Investigation Branch report of May strategy ENCs is considerably greater than 2008: for paper charts. For paper charts The first step for any shipping “The ship’s course had been laid it was simple – if you wanted it, you directly over the shallow water of the company or ship manager is to have bought it, and if you needed it, it had Sand. The ship’s Electronic Chart a management-level strategy in place to be bought before leaving port. The Display Information System (ECDIS) for adoption that takes into account difference with ENCs is that there is was the primary means of navigation. the timetable for fitting, certification now flexibility – although prices are Unfortunately, none of the ship’s of systems, training of crew and the based around the cost of a one year officers had been trained in the use fact that there will be an overlap of licence, there are options for cheaper of the particular model of ECDIS ships both ECDIS and traditionally licences of three months and less, as installed. Thus, features on the fitted. If over-reliance is a risk at sea, well as options to carry a full portfolio ECDIS that might have prevented this under-estimation is a risk ashore, and of ENCs, but only pay for the ones grounding were not utilized.” that applies to the deadlines for fitting actually used. These options provide ECDIS. The experience of shipping significantly greater options for Unfortunately, although crew training companies indicates that planning, rerouting ships away from standard had been provided to the original preparation, installation and training routes, and even in the event of bridge team prior to putting the can take at least 18 months. diversion in an emergency. ship into service, by the time of the Step 3 - Choose the correct fit The right supply chain solution, grounding, all of this original team had including requirements for been rotated out. Under the SOLAS revisions, the communications and downloads, is decision must be made either to fit Step 6 – Get Flag state certification what will ultimately reduce overall vessels with dual or single ECDIS. costs. It is essential that you understand Both must comply with the ECDIS your Flag state’s requirements for performance standard. For example, Step 5 – Get the crews trained (and certification, preferably before settling by 2009, Stolt-Nielsen had fitted 33 keep track of which ones are trained) on a particular system and back- dual systems across their fleet, as The demand for ECDIS training is up arrangement. The Australian well as five triple systems, all SOLAS such that scheduling sufficient officer Maritime Safety Authority will accept compliant, plus 13 single systems courses could take three to six certification from any of nine different to improve crew familiarity in non- months. Key points are completion major classification societies around certified ships. The rationale for the of the generic ECDIS course based the world. For further information, triple systems is simple - even if one upon the IMO model. Make sure this refer to the Australian Maritime Safety fails, the ship can still leave port and includes significant hands-on time. Authority website, or ring the manager, continue its voyage and avoid lost Thereafter, crews will require type ship inspections at AMSA in Canberra. productivity. Given charter rates, specific training provided by the Step 7 - Demonstrate compliance for the cost of an additional ECDIS is manufacturer as, even though different Port State Inspection significantly less than even one day’s systems are intended to meet the unscheduled down-time. Additionally, same functions, wide differences in As well as having to satisfy the it’s worth noting that installation of menus, sub-menus and screen layout initial Flag State requirements dual or triple systems does not double can be confusing until a certain level when installing ECDIS, Port State or triple the number of ENCs required. of familiarity is reached. Control will be checking to ensure This is quite unlike paper charts compliance. Inspections might require where, if you want two copies, you A good example was highlighted demonstrations of competency by by the grounding of the M/V CFL buy two copies. appropriate members of the crew, as Performer on Haisborough Sand well as evidence of inclusion of ECDIS Step 4 - Choose the right chart supply off England’s east coast. To quote and back-up arrangements in onboard solution from the U.K.’s Marine Accident safety management procedures. For Australian vessels, or vessels trading to or from Australian ports, this will be a requirement. For further information, contact AMSA’s manager of ship inspections..
Conclusion In conclusion, it’s worth noting: The costs of implementing a full ECDIS solution, using double or even triple installations, are no more expensive than the costs associated with paper charts, as long as shipping companies research their options. Generic and type-specific training is essential if the benefits of ECDIS are to be realised. Remember what ECDIS and ENCs add: the ability to significantly improve situational awareness and reduce workload in increasingly larger ships and more constrained waterways.
82 Shipping Australia Limited I Autumn 2012 Autumn 2012 I Shipping Australia Limited 83 Border agencies Australian Maritime Safety Authority
2011 – AMSA’s year in review
By Graham Peachey, chief executive officer
n 2011, the Australian Maritime Australian Governments on 19 August We have been conducting nationwide Safety Authority (AMSA) progressed 2011. consultations on the new system. Iand completed many key projects These will continue throughout 2012. The agreement provides for: and initiatives. A discussion paper on the content of the National Law Bill has also been • a new Maritime Safety National At the beginning of 2012 it is released for public comment, with the therefore timely to look back at these Law Act that will apply to the text of this Bill released in early 2012. achievements and how they will operations of the domestic AMSA continues to work closely with maritime commercial vessel fleet benefit not only the Australian shipping the Department of Infrastructure and industry, but the broader international • a new National System for Transport in progressing these reforms maritime community. Commercial Vessel Safety that will as well as the re-write of the Navigation Act 1912 and wider shipping industry operate in all states and territories Maritime reform – a single reforms. from 1 January 2013 jurisdiction • AMSA becoming the national International cooperation 2012 is an important year for AMSA, regulator of the national system as we complete arrangements for our In 2011 we continued to work closely transition to the national regulator on 1 from 2013. with our regional and international counterparts in progressing key January 2013. For AMSA, this reform measure will maritime issues. Work towards this has been mean increasing our regulatory scope and stakeholder base, and coordinating Of particular note is the International ongoing for some time, with the Labour Organization’s (ILO) Maritime all state/territory commercial vessel intergovernmental agreement on Labour Convention (MLC), 2006. proposed national maritime reforms for regulation. Much of this will rely on This convention is an international domestic commercial vessels being the ongoing close cooperation with all global maritime priority, setting signed by the Council of jurisdictions. minimum working and living conditions
84 Shipping Australia Limited I Autumn 2012 and National Maritime Emergency Response Arrangements (NMERA).
The contract for the review was awarded to Parsons Brinckerhoff and Thompson Clarke Shipping, both of which have extensive knowledge of the National Plan. The review is expected to be completed in the first half of 2012 and takes into account recommendations arising from the incident reports for both the Pacific Adventurer and Montara Wellhead incidents, as well as a number of MLC Regional Dialogue delegates with Mr Graham Peachey, AMSA Chief Executive Officer; Dr Cleopatra Doumbia-Henry, Director of the International Labour Standards Department of recommendations of the Montara the ILO; and Minister for Infrastructure and Transport, the Hon Anthony Albanese MP. Commission of Inquiry. It will determine if current arrangements are adequate to provide an effective standards for the world’s 1.2 million Assembly in London, with the then response to marine casualties seafarers. It covers conditions of Secretary-General of the IMO, Mr and pollution of the sea by oil and employment, hours of work and rest, Efthimios E. Mitropoulos, making the chemicals, and where deficiencies are announcement on Friday 25 November accommodation, recreational facilities, identified, make recommendations to 2011. food and catering, occupational health rectify them. and safety protection, medical care, Australia is a founding member of the The risk assessment for maritime welfare and social security protection. IMO and has actively participated in the development of IMO instruments for oil spills in Australian waters, which In December Australia became the more than 60 years. We are supportive provides important data to be taken 22nd country to ratify the convention, of the IMO as an organisation that into account in the review was which enters into force 12 months after responds to new challenges. We are completed by Det Norske Veritas in late ratification by 30 countries. also supportive of the engagement of 2011. emerging maritime states and strongly In May we hosted the ‘Asia-Pacific - A encourage their participation at all IMO Levies – an easier way to pay Regional Dialogue on the Maritime meetings. Labour Convention’ conference In 2011 we launched our new Levy in Cairns which brought together Review of National Plan and Payment Portal. The portal enables 100 delegates from 20 Asia-Pacific maritime emergency response shipping agents and owners to nations. During the conference, arrangements check the status of levies and make The Hon. Anthony Albanese MP We are continuing our review of the payments online, negating the need to signed an Accord with leaders of National Plan to Combat Pollution of visit Australian Customs and Border the ILO and International Maritime the Sea by Oil and other Noxious and Protection Service offices for the Organization (IMO), identifying areas of Hazardous Substances (National Plan) purpose of paying their levies. cooperative action to achieve rapid and widespread ratification and effective implementation of the MLC within the The Hon. Anthony Albanese MP presents region. the keynote address at AMSA’s 21st Anniversary Charity Ball. During 2012 we will work with the shipping industry towards implementing requirements of the Convention for Australian flagged ships and continue to prepare for the increased responsibilities the Convention will bring for our port state control role on foreign ships in Australian ports.
Australia’s commitment to the enhancement of international maritime cooperation and the activities of the IMO was recently recognised in our re-election to Category C of the IMO Council.
The elections were held during the 27th session of the IMO General
Autumn 2012 I Shipping Australia Limited 85 view to toughening the penalties for breaches. • the establishment of a Great Barrier Reef Shipping management Group, which is tasked with monitoring effectiveness of current measures to enhance maritime safety and protection of the reef and recommending mitigation measures to deal with risks posed by future traffic growth.
Ship inspections 2011 was a busy year for Australian ports with around 23,800 visits made to 74 ports by 4900 foreign flagged ships. Undertaking its risk-ranking to assist in the selection of ships for inspection, AMSA conducted 3002 initial port state control (PSC) inspections of 2660 individual foreign ships. In these inspections, a total of 8406 deficiencies were found (of many types, and representing varying degrees of seriousness), with ships detained on 275 occasions. That is, 9.2 per cent of PSC inspections resulted in detention of the ship. In addition, AMSA undertook 84 flag State control (FSC) inspections of 63 Australian ships in 2011, resulting in the detention of six ships. These PSC and FSC inspections were part of some 7930 inspections of 20 different types (covering ships and cargoes) which were undertaken by AMSA last year.
Emergency response and safety Boundaries of the extended REEFVTS area. education 2011 was a busy year for AMSA’s The portal simplifies the process • A revision of the regulation for Rescue Coordination Centre (RCC for the payment of levies, which is coastal pilotage, Marine Orders Australia). More than 1100 lives were now achieved through credit card, Part 54, which came into force saved by RCC Australia in the year, an direct debit authority and electronic on 1 July 2011. This strengthens average of approximately three lives funds transfer payment options with measures to enhance safety, per day. electronic receipting. including an increased emphasis on safety management plans and A key aspect of search and rescue Great Barrier Reef protection fatigue management. is community awareness and safety education. AMSA provides ongoing measures • the enhancement of aids to advice to the Australian community navigation in the Great Barrier The Australian Government introduced through its presence at boat, aviation Reef with a major refurbishment a number of measures in 2011 to and 4WD shows, its website and of North Reef Lighthouse strengthen the protection of the Great programs such as the Torres Strait including the installation of vessel Barrier Reef. Marine Safety Program (TSMSP). tracking and voice These measures will improve maritime communications equipment. With a community liaison officer safety and protect the marine permanently based in the Torres Strait • the implementation of an under environment for one of Australia’s most for the past two years, AMSA, together keel clearance management precious environmental assets. with its TSMSP partners (Maritime system for the restricted waters of Safety Queensland, Torres Strait The measures include: the Torres Strait. Regional Authority, Queensland Police • the extension of the coverage • A review of the offences under the Service and National Maritime Safety of the Great Barrier Reef and Protection of the Sea (Prevention Authority of Papua New Guinea), has torres Strait Vessel Traffic Service of Pollution from Ships) Act been able to increase safety education (REEFVTS) to the southern 1983 and the Navigation Act in the region, resulting in a reduction boundary of the Great Barrier Reef 1912 is currently underway, with a of the number of search and rescue marine Park. incidents. The TSMSP involves many
86 Shipping Australia Limited I Autumn 2012 An AMSA marine surveyor conducts a port State control inspection in Australia’s north-west and east Adelaide. coast resource ports • managing emissions and changing environmental risks profiles that result from the expected shipping growth • effectively implementing, administering and enforcing a growing range of international instruments designed to improve ship and seafarer safety, including provisions of the Maritime Labour Convention, 2006 • responding to expected significant increases in sports aviation and recreational boating leading to growth in search and rescue activity and costs • managing the transition and implementation to a single national regulator for all commercial vessels. We will continue to work closely and components including school visits, These include: consult with the Australian industry and maritime studies, boating safety regional and international counterparts • managing an expected campaigns and Torres Strait Boatsafe to ensure these challenges are and Indigenous Small Boat licensing international shipping growth of addressed to ensure a safe, sustainable courses. 20 per cent, particularly traffic into and efficient maritime sector. AMSA remains committed to improving boating safety in the Torres Strait and will continue to work closely with its partner agencies to further promote and enhance safety within the region.
AMSA celebrates its 21st anniversary On 21 October 2011, we celebrated our 21st anniversary by hosting a Charity Ball at the National Museum of Australia in Canberra. It was a great occasion which brought together current and former AMSA staff, government and industry representatives and members of the broader maritime community. The event acknowledged the contribution made by the maritime sector during AMSA’s 21-year history and recognised the dedication of Australia’s key seafarer welfare organisations. The ball raised over $89,000 with the proceeds divided equally amongst the three seafarer welfare beneficiaries - Apostleship of the Sea Australia, The Australian Mariners’ Welfare Society and the Mission to Seafarers Australia.
Looking forward As we look forward to 2021, AMSA’s 30th year, we have identified several key challenges facing the authority and the broader maritime sector during this period. Adrian Davidson, AMSA’s Community Liaison Officer in the Torres Strait, addresses a community meeting in Katatai Village, Papua New Guinea.
Autumn 2012 I Shipping Australia Limited 87 Border agencies Australian Maritime Safety Authority
AMSA working to increase awareness of OHS notifications
By ALLAN SCHWARTZ, general manager maritime operations division
AMSA working to increase awareness of lack of awareness of incident notification Incapacity - an accident that causes incident reporting. requirements. an employee who performs work in connection with the undertaking to be Through AMSA, the Australian Government AMSA and the Seacare Authority are incapacitated from performing work for five implements and enforces a number of taking steps to increase maritime industry or more successive working days. legislative requirements for the shipping awareness of incident types and reporting industry, including the requirements of the obligations. Dangerous Occurrence - An occurrence Navigation Act 1912 and the Occupational that occurs at a workplace and results from AMSA has developed an information Health and Safety (Maritime Industry) Act operations that arose from an undertaking package titled ‘Incident Notification 1993 (OHS(MI) Act) and their associated conducted by or for the operator of the Guide under the OHS(MI) Act’. This guide regulations. workplace; and could have caused: outlines incident notification requirements AMSA performs the inspectorate role under and when an incident should be notified • the death of, or SPI to, any person the OHS(MI) Act and therefore, in addition to AMSA. The package includes a • the incapacity of an employee for a to its normal roles within the maritime notification flowchart, a helpful tool to duration of five or more successive industry (such as verifying compliance with assist operators in their decision making, working days. legislation), we now also have advisory and an explanation of the terms used in the functions. legislation. but as a result of which death, SPI or incapacity did not occur. In fulfilling our functions, we continually AMSA encourages industry and interested review our methods and monitor trends parties to access the package from our In cases where an incident is not notifiable within the maritime industry. website at: http://www.amsa.gov.au/ to AMSA, operators should still maintain Shipping_Safety/OHS/ their own internal reporting mechanisms Generally speaking, the OHS(MI) Act has and utilise this information to improve limited scope in regard to its application their OHS systems and health and safety So what are notifiable incidents? to the ships operating on the Australian culture. coastline, but the Navigation Act is broader AMSA recognises it can be difficult for and not only extends to more ships, operators to determine which incidents are but has wider requirements for incident notifiable. The OHS(MI) Act and associated reporting . regulations define the following notifiable In regard to safety of seafarers specifically, incidents: both Acts cover safe operations and Death - a work-related death of any incident reporting. The OHS(MI) Act person including a member of the public, a addresses this with specific provisions and contractor or an employee. IncIdent the Navigation Act does so through similar notIfIcatIon GuIde Serious Personal Injury (SPI) - an injury to, provisions but also by mandating the under the Occupational Health & Safety Act International Safety Management Code. or disease in, any person that is caused by (Maritime Industry) Act 1993 an accident at a workplace and for which The Navigation Act will be further the person is: strengthened in this regard with the amendments to enact the Maritime Labour • given emergency treatment on the Convention 2006. prescribed ship on which the accident occurred In our analysis of OHS incidents reported under the OHS(MI) Act, and through • given emergency treatment in consultation with the Seacare Authority, another place by a registered we are concerned that the rate of OHS medical practitioner incident notifications received from industry • admitted to a hospital appears very low compared with that of
other OHS regulators. This may be due • treated in a hospital as a casualty, November 2011 to both the complexity of jurisdiction over without being admitted to the ships which are mobile workplaces and a hospital.
88 Shipping Australia Limited I Autumn 2012 Incident trend analysis and responses from seven to 30 days or more. On this basis, it could be expected the Notifiable incident trends help AMSA develop OHS(MI) scheme would have more Marine Notices, target OHS educational reports in this category. awareness programs and may also lead to legislative changes being made. In recent • Dangerous occurrences were years the Occupational Health and Safety significantly lower under OHS(MI) (Maritime Industry) (National Standards) than other industries. The Regulations 2003 have changed to include comparison indicated that OHS(MI) regulations for best practice in confined dangerous occurrence reporting was space entry training and the adoption of lower by as much as 79 per cent. an approved code of practice for manual The issue of under-reporting of dangerous handling for the maritime industry. occurrences, or ‘near-misses’, is particularly concerning. This type of reporting is the Figure 1 The term “safety culture” is commonly used and various definitions exist. Whichever warning of what could have happened definition you want to use, we believe the and has the potential to prevent incidents In some instances, the incident will be issue of reporting is a very good indicator in the future. If as an industry we do not outside AMSA’s jurisdiction, but another OHS of safety culture. It demonstrates the acknowledge that dangerous occurrence regulator may still need to be notified. commitment to safety from those at the reporting is more important than actual incident reporting, this is an indication of a Where there is any doubt, we advise reporting end and the commitment to low level of safety culture maturity. operators and masters to submit a safety from those at the executive end of an notification. AMSA can then make a organisation. AMSA can establish no clear reason determination or contact the operator directly Research has been conducted into the explaining this trend, other than lack of to discuss the incident. relationship between actual incidents and reporting. This could result from complexities dangerous occurrences or near-misses. in procedures or low awareness of regulations. The importance of notifying incidents Obviously the relationship varies from one industry to another, generally dependent Whether it be under OHS(MI) or the ISM AMSA uses notification information for a upon the risk level of the industry. Regardless Code requirements, receiving dangerous number of purposes. of what the actual ratio is, the relationship occurrence reports, analysing them and In the first instance, it assists AMSA to is that significantly more near-misses occur putting in place appropriate controls is not than actual incidents. This is logical and can establish whether immediate medical or only a critical step in allowing operators and be represented in the “accident pyramid” evacuation assistance is required or if the seafarers to meet their statutory duty of care Figure 1. incident needs to be investigated. obligations, but it also allows those involved to actually prevent injuries to seafarers. The statistics AMSA have show the ratio is AMSA also uses the information to gain an the opposite. Remaining within the ‘reactive area’ shown understanding of current and potential safety in Figure 1, and not using the volume AMSA’s OHS incident statistics from 2005 to issues under our jurisdiction. and wealth of information available from 2010 indicate that SPIs increased during the dangerous occurrence reporting, is an Also, under the OHS(MI) Act, AMSA is period. However, incapacity, or the severity ineffective use of resources and misses required to report incident statistics to the of injury, decreased during the period and valuable opportunities to improve safety. Seacare Authority. This allows both AMSA employees required less than five days and the Seacare Authority to identify any off work post injury – a very positive sign In this regard the role of management and incident trends and direct education and however this changed in 2011. onboard safety committees is critical. I other resources to those areas of concern. encourage those at all levels, and particularly Dangerous occurences over the same period those participating in committees overseeing Providing timely and accurate incident seemed significantly low and AMSA is safety, to be very mindful of what could notification allows AMSA and industry to particularly concerned about under-reporting have happened, not just what did happen, work together to identify trends and to enable of these. The levels of reporting are reflected and when considering responses, to be prompt preventative measures to help reduce in Figure 2. innovative in applying the well-known incidences of workplace harm. The concept To establish if our concerns were justified, hierarchy of controls. of a shared responsibility for safety benefits AMSA recently carried out a comparison At AMSA, we encourage all levels of both the regulator and industry as a whole. of OHS incidents reported to other OHS reporting and particularly of dangerous regulators. occurrences, both internally and to AMSA and other regulators working The comparison showed: organisations such as ours. We also strongly together encourage operators to view such reporting • Reported SPIs were relatively even There are instances where jurisdictional as an opportunity to improve. There are across industries any number of ship operators who openly boundaries between a state/territory OHS acknowledge that a small investment in regulator and AMSA are unclear, particularly • Incapacity was higher in AMSA, safety can give large rewards. in the case where an incident occurs on however this can be partly explained ships in port. by the defined incapacity period in It is far better to prevent an incident OHS(MI) being five days or more, ever happening than to stop it happening To identify jurisdictional boundaries whereas other jurisdictions range again. and ensure industry is regulated by the appropriate OHS regulator, AMSA has developed Memorandum of Understandings (MOUs) in consultation with other state and territory OHS regulators. This arrangement aims to provide consistency in the management of OHS issues on the waterfront. Currently AMSA has MOUs with New South Wales, Northern Territory, South Australia, Victoria, Tasmania and Queensland. The template for these MOUs can be found at the AMSA website at: http://www.amsa.gov.au/ Shipping_Safety/OHS/OHSMOUs.asp Figure 2
Autumn 2012 I Shipping Australia Limited 89 Border agencies Australian Transport Safety Bureau
Fatal accident prompts safety review in Australian ports
By Martin Dolan, chief commissioner and CEO
s Australia’s national transport evening, the ship was loading containers, safety investigator, the Australian using shore portainer cranes (portainers) ATransport Safety Bureau (ATSB) and stevedoring labour. The stevedores investigates marine and other transport included a team of eight lashers (men accidents to identify contributing factors whose task it was to lash the deck with a view to reducing the risk of a similar containers after loading). accident happening in the future. A major part of this investigative role involves During the evening, while the stevedores looking at organisations’ safety systems were in the process of loading a forty-foot to see how effectively these systems container on to one of the ship’s hatch detect and manage the factors that lead to covers, a twistlock foundation on the accidents in the first place. hatch cover separated while the container was being repositioned by the portainer The ATSB’s recent investigation into a driver. As a result, the container swung fatal stevedoring accident on board a aft towards a bay of containers which had ship berthed in Port Botany has revealed been loaded earlier in the evening. a number of issues associated with the safety system of one of Australia’s largest The lashing team leader was standing at the after end of the container being port operators. The lessons learnt as a At the time of the accident there was a loaded, ready to lock the manual result of identifying these safety issues are safety system in place in the terminal twistlocks that would hold the containers not limited to that facility or operator. The which was designed to keep the safety to the hatch cover. He could not investigation has highlighted important fresh and foremost in stevedores’ minds. escape the swinging container and was things that need to be considered when However, what might have been a poor crushed between it and the other loaded building and implementing effective safety choice or unthinking action on the part of containers. He was killed instantly. systems in the workplace. one man could have greater implications, and required further examination during What the investigation found The accident the ATSB investigation, both into the way in which safety lessons were taught, and On 28 March 2010, the Antigua and During the extensive investigation, ATSB Barbuda registered cellular container ship investigators found that the lashing team the way that they were learned. leader had placed himself in a position Vega Gotland was berthed at the Patrick The ATSB investigation also found that of danger. Consequently, when the Terminal in Port Botany, New South the issue of standing between a moving twistlock foundation separated during Wales. During the late afternoon and early container and a fixed object was not the repositioning of the container, he specifically covered or reinforced in the was unable to get clear of the swinging company’s safe work instructions (SWIs), container. or properly identified in the company’s As part of their induction, new employees hazard identification and associated risk were given instruction on the dangers control processes. In addition, what was of working between a moving container taught during the induction training was and a fixed object. As a measure of its not always followed by the stevedores on importance, during their interviews with board the ships berthed at the terminal. the ATSB investigators, the lashers stated Flaws existed in both the contents and that it was ‘drummed’ into them just how implementation of the safety system. critical these safety practices were. In this instance, the lashing team leader Effective safety systems are crucial had placed himself in an unsafe location, seemingly ignoring or forgetting his At the time of the accident, the New training and experience, or simply failing South Wales state occupational health to take it into account. and safety (OH&S) laws and regulations
90 Shipping Australia Limited I Autumn 2012 applied in the terminal. These required training, to be exposed to these unsafe Patrick to, so far as reasonably work practices during the on-the-job practicable, ensure the health, safety and experience phase of their training and this welfare of all its employees while they no doubt had an influence on how they did were at work. their job. protocols, training and relevant safe work instructions as necessary. It is expected To support fulfilment of its obligations that these initiatives should increase under New South Wales’ OH&S laws, A strong ‘reporting culture’ employees’ focus on and understanding of the company had implemented a Another fundamental component of any accurate and regular incident/hazard/near- safety management system (SMS) effective safety system is the reporting of miss reporting to ensure a safe workplace software package, known as a ‘Safety risk-related events. These events include for everyone, and to encourage employee Accountability Program’. To state near misses, non-conformities, unsafe participation in the company’s own internal the obvious, however, any SMS is acts, risk events, incidents, accidents investigations in the future. only as good as its implementation. and hazardous occurrences. Reporting Effective safety management means risk-related events is a proactive strategy Following the investigation, the ATSB that organisations need to ensure they because it can initiate remedial action to acknowledged the safety actions are looking at all the risks within the prevent a serious incident. The reaction taken by Patrick to address the safety organisation as a single system, rather to incidents usually involves addressing issues identified by the TA SB during than having multiple, competing safety safety issues that could have been its investigation and was satisfied that, management ‘silos’. If safety is not identified earlier from near misses. In over time, they would reduce the risks seen holistically, it can interfere with the addition, a valuable component of any associated with those issues. prioritisation of improvements or even reporting culture is the ‘just reporting’ result in safety issues being missed. aspect. This form of reporting allows Improving safety for all stevedores An effective safety system needs to have employees to make reports of concerns a review and continuous improvement without any fears of suffering retribution. Meanwhile, progress is being made to process. This ensures operations are Patrick did have a system in place for improve the safety of the entire Australian being conducted in accordance with its employees to report the risk-related stevedoring industry. In 2010, Safe Work procedures and that the procedures events observed by its stevedores in the Australia established a Stevedoring themselves properly reflect the way terminal. In fact, in the 24 months before Temporary Advisory Group to look at workplace operations are carried out. If the accident on board Vega Gotland, the issue of safety in the Australian they do not, then one or the other, or both, Patrick Port Botany terminal management stevedoring industry. The group need to be changed. received 270 ‘hazard/fault’ reports. consists of representatives from industry However, these were predominantly stakeholders (including employers and Monitoring safety compliance concerned with fault reporting connected the Maritime Union of Australia), federal with terminal equipment or machinery. In and state maritime and safety jurisdictions The ATSB investigation revealed that addition, all 270 reports were submitted Patrick’s safety system was focused on (including the Australian Maritime Safety by stevedores working in the terminal, training and supervision. However, despite Authority and Safe Work Australia), and driving the straddle carriers or driving the having SWIs aimed at reducing the risk subject matter experts. The role of the portainers. There were no reports from of an accident, and an extensive training group is to identify the risks posed to any stevedore working on a ship berthed regime for new employees, at the time workers in the Australian stevedoring alongside. of the accident Patrick did not have any industry and then to decide on how process in place, such as compliance The comradeship between stevedores best to manage those risks to make the auditing, to ensure its stevedores were in Australia is a particularly strong one. Australian waterfront a safer place to work. following the training they had received It is possible that the stevedores did not At the time that the ATSB’s investigation and the guidance contained in the SWIs. submit risk-related event reports because report was published, the group was they thought that making a report might It is likely that the unsafe work practices, continuing to meet to consider safety result in action being taken against one of or routine violations of the SWIs, which their colleagues. Consequently, two critical issues facing stevedores on the Australian had made their way into the working parts of an effective safety system, which waterfront and to evaluate the need for practices of the stevedores, were the had a direct impact upon its ability to further regulatory or guidance material. result of many years following the same effectively manage safety in the terminal, or similar practices where there were The ATSB investigation report 273-MO- the ‘reporting’ culture and the ‘just’ few or no safe operating procedures/ 2010-002: Independent investigation into culture, were either not present or were instructions and a lack of processes in the stevedore fatality on board the Antigua misunderstood in Patrick’s safety system. place to monitor compliance with policies, and Barbuda registered container ship procedures and training. Unfortunately, it Since the accident, Patrick Terminals Vega Gotland at Port Botany, New South was not uncommon for new employees, has, in consultation with its workforce, Wales, on 28 March 2010 is available on after they had finished their induction continued to review, reassess and refresh the ATSB web site at: www.atsb.gov.au
Autumn 2012 I Shipping Australia Limited 91 Border agencies Department of Agriculture, Fisheries and Forestry – Biosecurity
pratique in Australian waters. The voluntary measure would include the promotion of existing Australian biofouling management guidelines Spotlight on through an extensive and targeted communication campaign. The Australian Government held a series of public meetings to discuss the biofouling management policies biofouling during December 2011, as part of a three month public consultation n recent decades ballast water has • in-water inspection, cleaning and period ending 29 February 2012. been the focus of global efforts maintenance The meetings were attended by to minimise the spread of marine I • ship design and construction. representatives from the shipping, pests by the international shipping petroleum and aquaculture sectors, industry. Marine growth on ship hulls, In addition to these voluntary conservation councils, paint or ‘biofouling’, is now the subject of guidelines, some governments are manufacturers, marine consulting increasing global scrutiny and may starting to develop regulations for companies and Australian and state pose a greater risk than ballast water biofouling management, such as New governments. when it comes to the movement and Zealand and California. Written submissions, as well as establishment of marine pests (Hewitt feedback and comments received et al., 2010). Biofouling management in Australian waters during the public sessions, are being Once established, marine pests are considered and further information on notoriously difficult and expensive Since 2009, Australia has had the proposed policy options will be to eradicate and have the potential voluntary domestic biofouling available in mid 2012. to cause significant damages management guidelines. The including: loss of revenue for coastal guidelines were developed in What can you do? fisheries, aquaculture industries and consultation with marine industry Vessel operators can make a tourism; reduction in native marine stakeholders and provide practical methods to help vessel operators difference by regularly reviewing their biodiversity; and increased vessel existing biofouling management plans drag, fuel costs and GHG emissions. manage biofouling on their ships. The guidelines can be downloaded for free to ensure that risks are appropriately Without appropriate management from www.marinepests.gov.au. addressed. The most important thing strategies, the risks associated with is to regularly assess the biofouling The Australian Government is now biofouling on vessels are likely to risk posed by your ship and, if focused on identifying and managing increase with increased shipping necessary, to take remedial action the risk of marine pests from numbers, fishing and recreational prior to departing from a port or zone. biofouling on internationally arriving activities. High risk factors include: vessels. • vessel hulls without effective anti- International push to manage A regulation impact statement (RIS) fouling coatings; biofouling has been released that considers two policy options– regulatory and • extended periods of time without Last year the International Maritime voluntary measures – which are hull inspection or treatment Organization (IMO) adopted the first intended to balance business risks activities (including to niche set of international guidelines to with biological risks and would be areas); manage biofouling. practical and effective to implement. • lack of internal seawater treatment The effectiveness, costs and benefits The guidelines are currently voluntary systems; and, and focus on four areas to reduce of each option were analysed in the biofouling risks: RIS. • long duration of consecutive days spent in international coastal The regulatory measure would • biofouling management plan and waters. record book require internationally arriving vessels to undertake appropriate For further information on good • antifouling coatings system biofouling management practices biofouling management practices visit selection, installation and and to be free from a suite of marine the marine pests website: maintenance pest species before being granted www.marinepests.gov.au.
92 Shipping Australia Limited I Autumn 2012 The clearer course. Tailored insurance solutions that give you clarity and confidence More demanding customers, tougher regulatory compliance and harsher penalties. You need an insurer who gives you clarity and confidence in the face of increasingly complex challenges. You need the international transport and logistics industry’s leading provider of insurance and related risk management services. Welcome to TT Club. ttclub.com
Autumn 2012 I Shipping Australia Limited 93
TT CLUB SHIPPING AUSTRALIA LIMITED.indd 1 13/02/2012 11:39 Border agencies Office of Transport Security
Efficient maritime security regime relies on strong partnerships
By STEVE DREEZER, general manager – Maritime, Identity and Surface Security Branch
legislative framework, OTS considers developed for different ship categories not only its impact in achieving desired and it also relieves some of the regulatory security outcomes but also its potential burden on lower-risk operators. impact on the operations of the maritime industry. The past year has seen further After extensive industry consultation engagement with industry in ensuring the a Maritime Screening Notice for Large development of policies which are in line Passenger Ships was served on capital with industry practices, to provide the city port operators on 26 September optimal security outcomes. 2011 and it came into effect on 30 January 2012. The notice essentially formalises the existing arrangements for Passenger ship security enhancements passenger and baggage screening for The recent exponential growth of the cruise ships at capital city ports. These cruise ship sector in Australia has arrangements have been in place for highlighted the fact that passenger ships some years, and ports retain the flexibility to enter into a Declaration of Security he Australian Government are now both regular and highly visible with cruise ships that have a screening works closely with domestic and at capital city and regional ports. Due to capability to screen on their behalf. This international maritime agencies the number of passengers involved and T is an example of the OTS commitment the potentially dramatic imagery that a to uphold and strengthen security terrorist attack would generate, cruise to consulting with industry at all stages at Australia’s sea ports, oil and gas ships continue to present an attractive of policy development, and working platforms and coastal borders. This terrorist target and as such they are a together to achieve an effective outcome. partnership underpins our strong and policy priority for OTS. However OTS OTS has also been working closely with efficient security regime, in place to does recognise that not all passenger industry stakeholders throughout 2011 to stop a terrorist attack. However, the ships present the same risk profile. introduce national screening standards threat to Australia’s maritime sector for passengers, baggage and vehicles has not diminished and government In recognition of the differences in the risk travelling on passenger and vehicle ferries, and industry must remain vigilant and profiles the Government amended the and small passenger ships, which will adaptive in keeping Australia’s maritime Maritime Transport and Offshore Facility continue into 2012. sector secure. Security Regulations (2003) (MTOFSR) on 11 September 2011, to make the maritime Other regulatory amendments in 2011 Continuous improvement is a priority security framework more flexible and for the Office of Transport Security adaptable to changing risk and industry Several other refinements of the maritime (OTS) Division of the Department of circumstances. Passenger ships are now security regime were carried out in Infrastructure and Transport. As Australia’s divided into three different categories 2011. MTOFSR was also amended to preventive security regulator for the that represent different levels of risk and allow exemptions from the requirement maritime sector, the OTS is continually have different operational requirements. for ships to hold a Ship Security Plan looking for ways to improve the preventive The regulations now provide for small and/or International Ship Security security measures in place and reduce passenger ships (150 passengers and Certificate (ISSC), in exceptional low risk the risk of a terrorist attack. Good below), large passenger ships (151 and circumstances. Such circumstances regulatory practice requires constant above); passenger and vehicle ferries, would not include activities directly related review and refinement of policy settings and other security regulated ships. to the usual commercial activities of the in response to changes in the security Consultation with industry has confirmed vessel, such as carrying passengers or environment and feedback from industry. that this differentiation is beneficial as it cargo. An example would be for a vessel, In evaluating the maritime security allows different security measures to be which usually trades on an intrastate
94 Shipping Australia Limited I Autumn 2012 basis, which undertakes an overseas or interstate voyage once every five years for maintenance purposes. The regulations were also amended to allow recognition of exemption certificates given to security regulated foreign ships from having Ship Security Plans and ISSCs. There was previously no provision to allow exemption certificates issued by contracting governments to be recognised. These changes reduce costs and the regulatory burden on industry while continuing to support the Australian maritime maintenance and vessel repair sector. These amendments were made Piracy continues to dominate the IMO maritime security agenda after extensive consultation with industry and contributed to a more flexible, risk- development of IMO instruments for more to the Australian domestic market, and based and outcomes-focused maritime than 60 years. Australia’s re-election is to the Australian export economy. The security regime. recognition of our ongoing support of the significance is brought into context in activities of the IMO, and our commitment light of decreasing natural resources in Maritime Security Identification Cards to the enhancement of maritime a competitive market and instability in a (MSICs) cooperation not only in the Asia-Pacific number of oil producing regions around region, but internationally. the world. At the same time the energy 2011 marked the fifth anniversary of the sector, in particular oil, may appeal to establishment of the MSIC scheme, and Piracy continues to dominate the terrorists groups as a potential target many early card holders have started maritime security agenda of the IMO and, given the profound impact any disruption applying to have their cards renewed. OTS unfortunately, does not appear to have to supply could have on national strongly encourages every MSIC holder diminished as a threat, in particular in the economies. whose card is due to expire in 2012 to Gulf of Aden and off the coast of Somalia. renew early. The International Maritime Bureau’s (IMB) Australia has had security regulated Piracy Reporting Centre (PRC) records offshore oil and gas facilities around During 2011 we also saw the most that in 2011 there were 421 incidents of the country since 2005, and OTS works significant changes to the MSIC scheme piracy and armed robbery at sea against constructively with the industry on since it was established in 2006. This ships and 42 ships were hijacked. Attacks preventive security measures through included the tightening of the eligibility in the Gulf of Aden and off the coast the Offshore Oil and Gas Security Forum. criteria for MSICs, and the introduction of of Somalia accounted for 231 of these The forum met twice in 2011, in June two yearly background checks for card incidents, 23 of the ships hijacked and and November and discussed a range holders. saw 450 people taken hostage. Currently, of issues relating to offshore oil and gas I am pleased to report that AusCheck, 10 vessels are still held by Somali pirates security arrangements including the the branch of the Attorney-General’s and 172 hostages remain captive. effectiveness of security zones, piracy and the Inspector for Transport Security’s Department which is responsible for It is evident that the risk of piracy to global Inquiry into the security of the sector. coordinating background checks relating maritime transport is real, persistent Addressing security for offshore facilities to MSIC applicants, has managed the and continues to evolve. As a result, the and noting that the shipping sector spike in applications very well with the piracy question continues to be discussed services these facilities is critical to the majority of applications being finalised extensively within the United Nations maintenance of supply. within five working days. framework, international meetings, amongst industry and in academic However, some checks do take longer, What does 2012 hold? especially where applicants have common circles and the media. The IMO declared names and/or serious criminal records. As piracy as its theme for World Maritime Together government and industry such, all MSIC applicants, including those Day 2011 and has devoted considerable have made some great advances in our applying for renewals, are encouraged to time and resources to the issue including maritime security regime during 2011 liaise with their respective MSIC issuing development of interim guidance to flag and we can rightly be proud of our bodies as early as possible. states, port states and ship owners, achievements. The threat to Australia’s operators and masters on the use and maritime sector, however, has not During 2012 we will see further industry employment of privately contracted armed diminished and OTS and industry must discussion on a range of issues relating to security personnel. This guidance will be continue to be innovative in seeking to MSICs including how to best ensure that discussed at the IMO Maritime Safety achieve cost effective solutions to security MSIC issuing bodies manage the risks Committee (MSC) meeting in May 2012. issues into 2012 and beyond. Good basic associated with identity checking and card While Somali-based piracy may seem protective security measures, coupled security, and what the costs and benefits with an effective maritime security culture, of the current devolved MSIC model are remote to Australian shipping, the potential impacts of piracy to Australia’s are the keys to future success. The as contrast to a more centralised model same level of commitment from OTS and for delivering the MSIC scheme. interests are manifest and include the threats to Australian cargo, seafarers industry that made 2011 successful will be and passengers as well as the economic required to meet the emerging challenges International maritime security costs. That is why OTS continues to of 2012. In 2012 we will be continuing On the international front, Australia support and engage in international our focus on passenger ship security and screening enhancements, increasing the successfully retained its seat on the efforts to combat piracy, in particular flexibility of our screening regime through International Maritime Organization (IMO) industry developed and IMO endorsed our work on recognising cleared status of Council (Category C) following a highly Best Management Practices (BMP4) for passengers and baggage, and conducting contested election. The Council is the protection against Somali-based piracy. a review of our waterside security executive arm of IMO and is responsible, measures policy to identify any alternative under the Assembly, for supervising the Offshore oil and gas measures which could achieve the same work of the organisation. Australia’s oil and gas industry continues security outcome. I look forward to Australia is a founding member of the to have a significant role to play in working with you to meet these challenges IMO and has actively participated in the ensuring continued supply of energy throughout the year.
Autumn 2012 I Shipping Australia Limited 95 PORTS australia
Implementation of the National Ports Strategy – success requires an all agency approach
By David Anderson, chief executive officer
n 4 November 2011 the inaugural separate ways on national approaches to meeting of the Standing Council issues which nevertheless have important Oon Transport and Infrastructure linkages, for example efficient transport (SCOTI) was convened in Canberra. systems on the one hand and land use planning on the other. Although it went relatively unannounced this meeting represented a significant To quote the Communique: and logical step towards securing a “The new Standing Council for the first more cohesive and broader based time brings together responsibilities for policy approach to national port issues. strategic planning with infrastructure SCOTI, which was established as part and transport policy and regulation. of the COAG initiatives to reform the Bringing these functions together ministerial councils structure, now for under the umbrella of one Ministerial the first time brings transport, planning Council provides a unique opportunity and infrastructure ministers from the for the development of integrated Commonwealth, states and territories into solutions to address national the one forum. It replaces a number of infrastructure and transport planning ministerial councils which all went their and delivery challenges.”
96 Shipping Australia Limited I Autumn 2012 A further important development was that As a further step two key Commonwealth effort on the part of both industry and industry representatives were invited to research agencies, the Bureau of government.In particular the ports the meeting, and at the discretion of the Infrastructure and Regional Economics community is looking to progress the port chairman, the Hon. Anthony Albanese, to (BITRE) and the Bureau of Resources and master planning process. A small number make interventions. Industry was thereby Energy Economics (BREE) are carrying of our members have already achieved provided with an opportunity to directly out research projects on future demand this with active community and other contribute to, and to encourage, particular and on port and supply chain indicators to stakeholder involvement and ownership. outcomes at the highest level. support productivity measures in the NPS, Ports invariably have very well-developed and to support the port master planning It was on this occasion that I was able precinct plans and it is now a question to personally witness Ministers approve process. of accessing the benefits of other the National Ports Strategy to go forward The expert panel envisaged as part of stakeholder involvement which, among to COAG as well as their agreement to the NPS implementation is now also the first national heavy vehicle bill and other things, can lead to strengthened fully up and running and its membership recognition of the port as a key regional the national rail safety law, which also includes two very well-credentialed Ports economic driver and employer, to broader committed each jurisdiction to proceed Australia nominees, the Hon. Dr David with adopting nationally based transport acknowledgement of the port’s legitimate Hamill, who is a former Queensland arrangements. Treasurer and Transport Minister with aspirations to have room to grow and to expertise also in infrastructure funding and protect its access corridors, and to further The National Ports Strategy – an development, and Mr Des Powell who has development of its supply chains and effective change agent an outstanding record of experience in the to increased business opportunities. It The success of the National Ports Strategy transport industry, in public policy, and in can also lead to improved understanding (NPS) to this point has been twofold. industry consultation. This group has met that ports endeavour to be sound Firstly it has enabled the ports community on two occasions and has articulated how environmental citizens and apply a lot of to engage with governments and other it considers it can operate to best assist resources to this area and good science to stakeholders on a comprehensive menu of Infrastructure Australia to facilitate NPS what they do. port issues that are key to port efficiency outcomes in the areas of port planning, and sustainability. logistics and regulation. It certainly has a In the master planning process individual very strong view that it would like to add ports will proceed at varying pace and in Secondly, and of equal significance, the value where it is best equipped to do so, different ways in accordance with their NPS has created a conversation involving and that it should not simply add another many players that has ramped up port own particular relationships, governance level of monitoring to the NPS. and port-related issues on both the models and so on. One of the great public policy and political agenda. It has From hereon however, it is critical to the benefits of our current collaboration with agencies involved in transport, planning, success of the NPS that it increasingly Infrastructure Australia and the National and land use who were not previously become an all-of-government endeavour. Transport Commission, and our strong much engaged with port issues now Put another way, that the enabling of ports connection with the expert panel, is that understanding that port efficiency and to do their task as effectively as possible, they will lend support and resources to future capacity must be integral, rather become part of the routine of government. any port that requests it - their preference than peripheral, to their thinking and that The NPS has been endorsed at for a facilitating and support role is the functionality of cities and communities Commonwealth level by the Prime Minister strongly supported by Ports Australia. is inseparable from the functionality of and her Cabinet and openly articulated as ports and freight distribution. It is by a policy priority. At state and territory level To this end Infrastructure Australia is this means that only now are we finally it has likewise been endorsed by ministers working with a number of our members on securing some traction with key issues and accordingly embraced as policy. It developing collaboration with community such as urban encroachment, the is accordingly not at the discretion of and supply chain stakeholders to establish protection of road and rail access and port any agency of government to “reject” and freight precincts for future capacity a common vision about the strategic the NPS (and by implication good policy development, and the right to dredge. development of their respective ports. and the economic imperatives of their This improvement in appreciation of the respective governments) as inconsistent We have commented previously that importance of port issues is encouraging with their culture or way of thinking. It is the NPS provided an opportunity for the but the hard yards are still to come. encouraging that a number of transport ports community to address, under the Implementation of key elements of the and central agencies in our various one banner, those key issues of access, NPS, and commitment at the right levels jurisdictions now see the NPS for what it regulation and planning that have for to implementation, is now the challenge is – a simple opt-in proposition advocating some time been at the top of our strategic immediately in front of us and 2012 will be good policy and regulatory settings for policy agenda. We have also previously the year that determines the measure of their respective port communities. success in securing momentum in what is pointed out that this must involve seriously a long term process. Finally, it is important that we give addressing key issues such as the right every encouragement, that regulatory of ports to dredge their channels, about Implementation – where to from here? review processes such as that currently which there is now serious misinformation underway for the EBPA Act, do not abroad, and which some agencies see Currently Ports Australia is working sideline the aspirations of governments as a privilege rather than an economic closely with Infrastructure Australia, the that their ports operate as efficiently as necessity, and believe, contrary to due National Transport Commission and the possible. Department of Infrastructure and Transport process, that it can come at any regulatory on the best means of progressing key The matrix of actions that accompany the cost because the resources boom can elements of the NPS. One of the key published NPS is fairly exhaustive and, afford it. milestones is to work in collaboration with at first glance, daunting. Ports Australia We have reached the point where we have these agencies with a view to positioning sees as its task this year to assist where the Department to champion agreement possible in getting on with implementing secured broad base political support for to proceeding with a small set of key those elements which are immediately the NPS which now needs to be translated priorities at the next ministerial council achievable and we acknowledge that this into effective agency behaviour to permit it meeting in the first half of this year. will only be accomplished by equal to happen.
Autumn 2012 I Shipping Australia Limited 97 PORTS BRISBANE
ocated in one of Australia’s the port’s wharves and facilities, allowing Container trade positive fastest growing regions, South PBPL to improve cargo handling Throughout 2011, the Port of Brisbane LEast Queensland, and with over efficiencies, increase the use of the port’s saw growth in containerised agricultural $34 billion-worth of cargo crossing its multi-user facility, and experience solid wharves every year, the Port of Brisbane trading over a diversity of commodities. export commodities including cotton, Pty Ltd (PBPL) manages and develops Although trade results were strong, PBPL sorghum, chickpeas, cottonseed and Queensland’s largest multi-cargo did however experience a number of beef. Favourable seasonal conditions, port under a 99-year lease from the escalated costs in 2011, particularly in consistent rainfall and good soil were the Queensland Government. relation to the January flood clean-up and major contributors to this trend, which is expected to remain consistent for the next PBPL is responsible for developing associated dredging costs. two to three years. the port and related facilities, and for the provision of key services such as Positive trade results Figures indicate that in the 2011 calendar maintaining navigable access to the year, the Port of Brisbane’s container The Port of Brisbane has seen solid port for commercial shipping, and the throughput was approaching one million trading across a number of commodities operation of the Brisbane Multimodal teus, as compared with 953,095 teus in in the last six months of 2011. The Terminal. the 2010 calendar year. diversity of the commodities handled by PBPL is focused on driving trade the port has helped to sustain its trade The completion of wharves 11 and 12, in and business growth by working with results, with total trade to December 2011 2012 and 2014 respectively, will increase customers to enhance logistics chain increasing 7.3 per cent to 18.4 million the port’s container handling capacity solutions via Brisbane, deliver outstanding tonnes. Coal exports increased 4.2 per by 25 per cent, and take the number of development outcomes, facilitating cent to 4.1 million tonnes and container dedicated container berths to nine. efficiencies and innovation, and striving to trade increased 5.4 per cent to 542,000 accommodate new opportunities. teus, compared to the same period last Coal exports expected to grow year. One year as a private enterprise Queensland produces 60 per cent of total While trade remained positive, the January Australian coal exports, and around 50 per December 2011 marked the one year 2011 floods resulted in extensive damage anniversary of the Port of Brisbane’s cent of the world seaborne trade in coking to a number of the port’s supply chains, coal used in steelmaking. privatisation following acquisition by with hundreds of road and rail lines Q Port Holdings (QPH), a majority damaged or isolated, meaning some Positive coal exports through the port in Australian-owned consortium of four of commodities faced extensive delays. The 2011 were encouraged by high global the world’s largest and most experienced shipping and stevedoring industries also prices and strong demand, as well as coal infrastructure investors. had a difficult task, with a backlog of ships miners committing significant capital into In its first year of Port of Brisbane causing ongoing scheduling disruptions. capacity expansions. Both Queensland ownership, QPH has successfully Much of these flood-related costs were and Australian exports are expected to promoted efficiencies of trade across absorbed by PBPL. continue to grow over coming years.
98 Shipping Australia Limited I Autumn 2012 Brisbane a hub for project cargo the fourth quarter of 2012 with Berth 12 to GrainCorp truck marshalling area up follow in 2014. and running The Port of Brisbane provides a range of facilities to handle the diverse and often PBPL has invested $90 million in the GrainCorp’s new truck marshalling area at unique requirements of project and heavy- development of the facility and HPH the Port of Brisbane opened for operation lift cargo. PBPL works with customers to will invest significant capital in the in 2011. Construction of the marshalling ensure Brisbane can offer an integrated development of terminal 11. area added extra space to accommodate solution no matter how complicated or a minimum of 16 B-doubles at any one unusual the job is. time. Extra lighting means the facility can Port of Brisbane weighbridge PBPL is actively pursuing project and also now operate 24 hours-a-day. heavy-lift cargo as major infrastructure, Port users now have access to a new, The increase to five lanes, online booking mining and renewable energy projects get automated truck weighbridge. The underway across Queensland. Our diverse system and improved signage allows weighbridge provides auditable records for better control of truck movements, range of handling facilities, available of a vehicle’s weight, including individual storage facilities, and direct rail and road and the addition of CCTV cameras has axle weights, which assist with legislative connections make it an ideal landing port improved both safety and security. The for staging delivery of major equipment. requirements such as Container Weight marshalling area also meets Chain of Declarations. Responsibility requirements for truck New container terminals for the port drivers using the facility. Captain Bishop Bridge upgrade Construction of the port’s newest Looking ahead container facilities, Berths 11 and 12, is In August 2011, PBPL completed a major progressing on schedule. Berths 11 and project to duplicate the Captain Bishop Over the next 12 months, work will 12 will be operated by the port’s new Bridge, which included construction of continue on Berths 11 and 12 in stevedore, Hutchison Port Holdings (HPH), a duplicate bridge, replacement of the preparation for HPH to begin its through its local subsidiary, Brisbane existing bridge, and an upgrade of the operations as the port’s third stevedore. Container Terminals (BCT). Lucinda Drive and Port Drive interchange. PBPL will continue to focus on growing In December 2011, HPH awarded the Completion of this project and ongoing trade through the port and producing strong performance across all facets of construction tender for the Berth 11 works means the port is now equipped yard area to Baulderstone, signalling the the organisation. Enhancing the logistics to handle current and future loading immediate commencement of civil works. linkages with our hinterland will remain a requirements for heavy/wide-load truck key focus for the port including facilitating The works include ground improvements, traffic, and to manage the demands of improved road and rail access through in-ground infrastructure, pavement works increasing trade, with a safer and more direct investment and leadership of the and rail beams, all of which are critical to efficient road network. the creation of dynamic container port logistics chain feeding trade through the operations. In addition to the civil works, PBPL will continue to further improve road port. HPH has procured advanced container access, with maintenance works due to Moving forward, the Port of Brisbane is handling equipment, which is expected to begin on the Kite Street intersection and well positioned with the resilience and be delivered to the terminal in mid-2012. other associated road networks in early leadership to be here for the future as Berth 11 is scheduled to be operational in 2012. Australia’s leading port.
Autumn 2012 I Shipping Australia Limited 99 PORTS DARWIN
he Port of Darwin is Australia’s With construction set to commence particularly as recreational boats northern gateway of choice on the $34 billion Inpex Ichthys interact with large ships. It will Tand is the only port between facility, the second LNG plant to be also improve our approach to Townsville and Fremantle with full located in Darwin harbour, the Port environmental sustainability and access to multi-modal transport of Darwin is expanding to support our capability to support upcoming services to handle Australia’s other major projects within the major projects and a growing expanding trade. mining and oil & gas sectors. These Defence presence. include Shell Prelude and Falcon “Our harbourmaster is key to Strategically positioned in close Oil and Gas and increased volume the preparation for increased proximity to the fast growing forecasts for Territory Resources iron harbour traffic and will oversee the economies of Asia and the oil and ore mine and OM Manganese Bootu introduction of Port Rules, which will gas fields in the Timor and Arafura Creek project. drive the implementation of a state- seas, the port is rapidly developing Darwin Port Corporation CEO, Terry of-the-art Vessel Traffic Service,’ as a major oil and gas industry hub, O’Connor, says the corporation has Terry O’Connor said. and is the import and distribution successfully managed rapid and The Port of Darwin is the regional destination for most cargoes used in significant changes to infrastructure, transport and logistics hub that the seas off northern Australia. trade and corporate strategies in links Australia with its Asian trading order to provide superior services Located within Darwin’s East Arm partners. Its ability to service and additional capabilities to its Logistics Precinct, the Port of and supply the growing needs of customers and stakeholders. Darwin’s East Arm Wharf is also the Australian trade and the resources northern terminus of the AustralAsian “The corporation is in the process of industry ensures its position as the Railway and is set to play a key role securing leading edge systems and port of choice and a key player in in supporting the forthcoming Marine technology for harbour management, the economic development of the Supply Base. which will ensure harbour safety, Northern Territory and Australia.
100 Shipping Australia Limited I Autumn 2012 DPC3348_MINERALS_210x297mm_vert_DPC new MINERALS A4 21/02/12 10:34 AM Page 1
PORT of DARWIN Australia’s northern gateway of choice
Strategically located half way between Sydney and Singapore, the Port of Darwin is Australia’s nearest port to Asia, the terminus of the AustralAsian Railway and the only port between Townsville and Fremantle with full access to multi-modal transport services.
The Port provides 754 metres of continuous deepwater berths capable of handling containers, bulk liquids, live export, general and project cargoes. There is also a dedicated bulk materials handling facility with a 2,000 tph shiploader and a 1,500 tph rail dump.
Darwin is fast becoming the oil and gas capital of Australia with the construction of a second LNG plant and a purpose-built world class Marine Supply Base to service the region’s offshore industry.
With significant investment in capital infrastructure to support major projects, the Port of Darwin is gearing up to meet Australia’s future trade needs.
Phone: +61 8 8922 0660 Fax: +61 8 8922 0666 [email protected] GPO Box 390, DARWIN NT 0801 Australia
www.darwinport.nt.gov.au
Autumn 2012 I Shipping Australia Limited 101 Ship Loading using Gottwald crane and rotainer system
PORTS FLINDERS
Multiple ports. Multiple supply chain solutions.
linders Ports is a private company • deep water to cater for the required operating seven ports in South vessel size (Panamax). FAustralia … Port Adelaide, Port Lincoln, Port Pirie, Thevenard, Port Giles, • suitable storage area. Wallaroo and Klein Point. • environmental solutions that guarantee Flinders Ports is committed to improving minimal impact on the environment port services to the benefit of existing and local community. trades and assisting in the development Faced with these issues, Flinders of new business. The company continues Ports looked to leverage off its existing to expand its port facilities to meet the infrastructure whilst exploring innovative demands of its customers. and non-conventional cargo handling systems. Berth 29 Bulk Precinct - Inner Harbour Port Adelaide Due to the vagaries of handling large volumes of minerals and concentrates The rapid growth of the resources sector through a large metropolitan port, Flinders has seen an unprecedented rise in Ports was conscious of ensuring its demand for shipping options from South methodology satisfied all environmental Australia. This demand was driven by and community needs. In addition the start-up mining companies looking for key system needed to provide a low capital port attributes including: vincent tremaine, and economically sustainable solution for chief executive officer • road and rail connectivity. high volume iron ore exports.
102 Shipping Australia Limited I Autumn 2012 The resultant, bulk storage and handling Other major environmental, OH&S and • high payload per container. system developed by Flinders Ports’ productivity improvements in handling logistic division, Flinders Logistics, has these sensitive products include: These Adelaide operations are carried been recognised by its peers as both out in a general precinct adjacent to grain unique in its process and best practice. • the reduction of extensive clean down loading facilities, public marinas and of sophisticated conveyor and reclaim general housing. The system had to pass This system was developed through systems a rigorous monitoring program to satisfy extensive trialling and research over state and local government authorities. a three year period. The research • reduction of fugitive product collected Subsequent monitoring has met all culminated in a working model for an iron through a traditional conveyor system expectations from an environmental ore export programme, shipping 2 million • significant reduction in wash down tonnes of cargo per annum from Port and safety perspective leading to the water treatment and disposal Adelaide. Overcoming the environmental Environmental Protection Agency and community issues was the key to the • improved risk management of product providing approval for limited monitoring success of the project. contamination issues related to after the first year of operation as no multiple products in a single vessel significant dust was generated from the The key components of the process are operations. as follows; load The methodology is simple but elegant • lease or purchase specialised • sequencing of different products is and flexible. It can be applied to most containers in standard 20’ merely a selection of a customer’s configuration unique container for each hold for commodities. In developing the multiple customers. In addition, methodology all aspects of the supply • containers are filled with product at product blending/grades for each chain and regulatory regimes have been mine site export program is based simply on the considered. assays of each unique container • containers are delivered to the port The dust suppression system is a and stacked awaiting shipment • the ability to trace individual container specialised misting system that has • during vessel loading the containers contents, weights, assay/sampling been developed and is attached around the hatch of the vessel. Flinders Ports are delivered under the crane by either • maximising transport efficiencies ITVs or straddles in conjunction with dust management • reduction in capital requirements at specialists has developed misting systems • a rotating container tippler locks onto the port – no storage shed and for differing products. The system used for the container and lowers the unit into conveying systems required copper concentrates has been in use for the hold of the vessel for discharge sulphur dust suppression for the past year • engineered solution to reduce product • a specialised misting system has been by Flinders Ports with excellent results. hang-up developed and is attached around the Product moisture is tracked through the hatch of the vessel • significant reduction in product loss yard system and the water suppression • the rotating container tippler has the through the supply chain from mine system is metered to ensure that product ability to remove the lid from the site to loading on board the vessel moisture limits are accepted by the ship’s container whilst in the hold of the • reduction to the exposure of product master and international standards for vessel during its product discharge contamination shipping. rotation, and re-attach the lid prior to leaving the vessel’s hold • elimination of the need for employee The methodology has been recognised contact with toxic products and by its peers (Lloyds List and Chartered • the empty containers are delivered to airborne respirable contaminants Institute of Logistics and Transport ‘CILTA’ a lay down area stacked, and returned during shed management and award winning system) as both unique in to the mine. conveyor system operations its process and best practice. The iron ore operations in Port Adelaide • environmental management is The Flinders Ports owned regional ports of involved intensive consultation with the significantly enhanced with the Port Lincoln, Thevenard and Port Pirie are Environmental Protection Agency to obtain also being considered for development to approvals for the operation. Subsequent product being totally contained from monitoring has met all expectations from mine site through to the hold of the meet the demands of the mining industries an environmental and safety perspective. vessel in these regions. Over 1 million tonnes of iron ore were successfully exported in 2011 with no port related environmental impact. Since the establishment of iron ore operations in late 2010, Flinders Ports has refined the process for two concentrates exporters. This refinement has involved the construction of rail facilities to improve the economics of transport to the port, the acquisition of a Gottwald crane and container handling equipment, an extension of the hard stand area available for container stacking and a redesign of the containers to include a lid. This containerised solution will significantly improve the management of the environmental and OH&S risk associated with the handling of these commodities. Successful trials have been undertaken for the suitability of these products under this handling model and the purchase of equipment and long-term operations are commenced during the fourth quarter of 2011.
Autumn 2012 I Shipping Australia Limited 103 PORTS FREMANTLE
Infrastructure projects increase capacity and operational efficiency
remantle Port plays a vital economic The installation of new and upgraded when the Jia Xiang Shan was loaded with role for Western Australia, servicing export conveyors and associated facilities 50,167 tonnes of iron ore in just under Fmost of the State’s container trade followed the signing of commercial 36 hours. It was a record loading of a as well as other general cargo, bulk agreements last year for the export of iron bulk carrier from this terminal and an ore and coal. achievement made possible through the imports and exports and cruise shipping. excellent cooperation from all concerned. Mineral Resources, a diversified In 2010/11, container trade was at a Australian-based company, provided most Iron ore was previously imported through record level of just under 600,000 teu and of the funding and will export up to 4.4 the Kwinana Bulk Terminal for the now the value of trade through Fremantle was million tonnes of iron ore annually. terminated HIsmelt project. almost $26 million. Total trade throughput There will be approximately 68 shipments The recent upgrading was delivered with a was more than 26 million tonnes and the of iron ore annually over the next four high level of local content and the project port handled a total of 1705 commercial years, handling a total of approximately created some 500 direct employment vessel visits. 3 million tonnes of iron ore annually. The opportunities (including port, mine site number of vessel visits is expected to activities and rail operations) during the Kwinana Bulk Terminal upgrading increase to some 100 calls annually when construction phase. There will be some completed the export total increases to 4.4 million 220 jobs directly associated with the tonnes annually. mining and rail transport aspects during A $44 million upgrading of infrastructure the first three years of operation. The first shipment of iron ore fromM ineral completed towards the end of 2011 at Resources’ Carina mine site in the Yilgarn As well as jobs creation, there are Fremantle Ports’ Kwinana Bulk Terminal region of Western Australia went out on significant benefits in terms of mining has improved operational efficiency, with 19 November 2011. This was followed royalties to the State and revenue flowing significant benefits for Western Australia. by a second shipment in January 2012, to Western Australia from iron ore sales.
104 Shipping Australia Limited I Autumn 2012 The upgrading has also serviced the continued export of coal via the Kwinana Bulk Terminal. Fremantle Ports signed an agreement in 2011 with Indian conglomerate Lanco Infratech, owners of Griffin Coal, for the export of 750,000 tonnes of coal annually over four years. Coal exports have been handled through the Kwinana Bulk Terminal since 2007 and the new agreement with Lanco Infratech is helping to maintain continuity of employment for Collie coal miners until planned new facilities are developed at Bunbury or elsewhere. The new and improved infrastructure has significantly improved operational efficiency at the Kwinana Bulk Terminal, with a continuing strong focus on “It will ensure Fremantle Port remains The 27 hectares of new land reclaimed environmental management. Fremantle an efficient, modern working port able at Rous Head through dredging, will be Ports is triple certified to international to handle current and future vessel used for purposes which complement and environmental, quality and safety requirements and trade needs. enhance the efficiency of Inner Harbour standards and is committed to ongoing operations. Planning for this area is well “Studies by transport economic environmental improvement in all its advanced. operations. specialists showed that failure to deepen Fremantle Harbour in line with other Australian capital city ports would have Infrastructure works for common user Providing deeper, stronger berths for led to a loss of major direct shipping berths bigger ships services, with larger ships bypassing The general cargo handling operations at Fremantle Ports’ Inner Harbour deepening Fremantle and travelling to the eastern Berth 2 on Fremantle Port’s North Quay and berth works project, successfully seaboard. are an important element of the Inner completed in 2011, was one of the “The infrastructure works have contributed Harbour operations for common users. biggest projects undertaken at the port significantly to the long-term sustainability since the opening of Fremantle Harbour of Fremantle Port’s Inner Harbour Installation of a new fendering system for in 1897. as a major gateway for national and this berth at a cost of some $5 million began towards the end of It involved constructing a sea wall at Rous international trade and will ensure that 2011. It will enable continued operation Head to establish a reclamation area; Western Australian business continues of the berth and has been designed to be dredging the Inner Harbour, entrance to have access to major direct shipping incorporated into any future new wharf channel and deep water channel; services.” structure. reconstructing Berth 10 on North Quay Following the deepening of the Inner and strengthening North Quay Berths 4 to Harbour and upgrading of the existing Berth 2 cargoes include steel pipe, steel 9 on North Quay. container berths at North Quay, the port plate, scrap metal and livestock, among “The $250 million infrastructure project is able to provide access for the larger others. container ships which were previously was achieved on budget, within two years Behind common user Berth 12 at the unable to load to full capacity. The award of the works commencing and with a high eastern end of North Quay, the removal winning reconstruction of Berth 10 level of safety,” said Fremantle Ports chief of a very large but under-used shed has executive officer, Chris Leatt-Hayter. enables it to handle container shipping and provides an additional 180 metres opened up more wharf space for cargo “The work was essential to enable the port of operational wharf space for the port’s handling and improved the efficiency of to remain competitive. container trade. general cargo discharge and loading.
Passenger terminal upgrading Fremantle Port is now an established destination and seasonal port for international cruise ships, with Fremantle Ports represented on Cruise Down Under, Australia’s peak body for the cruise industry. A $2 million-plus program to upgrade the Fremantle Passenger Terminal on Victoria Quay has improved facilities for passengers and cargo handling while respecting the heritage significance of this very large 1960s building. The work involved a series of upgrades to ensure the terminal continued to meet modern cruise shipping needs as well as relevant security, Customs, quarantine and occupational health and safety requirements. The refurbishment of the terminal has received heritage award recognition for excellence in conservation.
Autumn 2012 I Shipping Australia Limited 105 PORTS MELBOURNE Strong trade sets the tone for a busy year
By Stephen Bradford, chief executive officer
total container volumes have increased 9.2 and terminal operators, who have per cent. contributed to underpinning Melbourne as Australasia’s leading maritime trade hub. Against the background of a high Australian dollar, perhaps the biggest success story Port capacity of these figures is the strong performance of full export containers which have Strong trade growth inevitably prompts outstripped imports increasing 9.8 per cent the question about the next tranche of and 12.9 per cent in the financial year to container capacity. As the shipping industry date. is aware, having previously provided their input through submissions to an Dry bulk trade increased 19.5 per cent for initial market sounding process, Port the financial year to date while liquid bulk of Melbourne Corporation (PoMC) has trade also increased 25.7 per cent. Overall, prepared a detailed discussion paper which break bulk cargo also increased 9.7 per outlines options for increasing container cent for the financial year to date while new capacity which is currently being reviewed Trade update motor vehicle trade remained below last by the Victorian Government. Naturally, we year’s levels to be down 9.4 per cent. Buoyed by good rains and strong will keep shipping industry stakeholders population growth, container trade through In short, the port is now handling an updated on progress. the Port of Melbourne reached a milestone additional 500,000 containers since in 2011, passing through the 2.5 million reaching the 2 million TEU milestone in Hastings container mark to record a throughput of 2007. This equates to around 6800 TEU per 2,506,726 twenty foot equivalent units day on average – or 280 TEU per hour. Having earmarked the Port of Hastings for (TEU) in the full calendar year, up 6.6 per development as a future container terminal, cent on the 2010 result. In terms of the We warmly congratulate all port the Victorian Government has established financial year to date ending 31 December, stakeholders including service providers the Port of Hastings Development
106 Shipping Australia Limited I Autumn 2012 Authority (PoHDA) to oversee that port’s dredging programs necessitates a revised Steer Clear development. The new PoHDA took control approach which puts the protection of Port Phillip Bay is a shared commercial of the Port of Hastings on 1 January 2012. marine assets at the forefront of our and recreational asset for Victorians. It is thinking. As a result, PoMC’s former responsibilities the gateway for the 3350 vessels calling for the Port of Hastings have been The experience of the Channel Deepening at the Port of Melbourne each year and a transferred to the new entity. Project has been invaluable in shaping our haven for anglers and boating and yachting approach to maintenance dredging and enthusiasts. to stakeholder relations more generally. It Port Licence Fee With rising boat ownership (there are over is also provided real time in situ data and 160,000 registered recreational boat owners At the time of writing, legislation for the modelling which enables PoMC to safely in Victoria) there is a growing need to introduction of a Port Licence Fee is still and accurately forecast potential impacts communicate the dangers of anchoring and being discussed in the Victorian Parliament of dredging, particularly with respect to mooring in shipping channels. Although this after the Victorian Government introduced turbidity. the Port Management Amendment (Port of issue is not unique to Melbourne, PoMC Melbourne Corporation Licence Fee) Bill With this information, PoMC sought has bolstered its ‘Steer Clear’ campaign 2011 into Parliament on 6 December. the appropriate approvals to conduct over the summer which is arguably one of maintenance dredging in parts of the South the strongest boating safety campaigns The Bill proposes that PoMC be required to Channel of Port Phillip Bay to remove sand of its type for raising the awareness of the pay an annual Port Licence Fee (PLF) to the accretion which reduced declared depths potential dangers of blocking or impeding Victorian Government at a starting rate of by up to 0.6 of a metre. the passage of large commercial ships. $75 million in 2012-13 which will increase annually by the Consumer Price Index (CPI) This work commenced on 7 February with For the summer period, PoMC in subsequent years. The Bill is expected to the arrival of the trailing suction hopper commissioned Geoff Cox from ‘Coxy’s Big become legislation in the upcoming quarter dredge, Brisbane, which will carry out Break’ to provide the voice for a series of and will impact PoMC’s pricing structure to dredging of approximately 330,000 cubic advertisements on commercial radio station come into effect from 1 July. metres of clean sand over a period of 3AW which have been well received. The around 35 days. By way of comparison, campaign also extends to eight community To ensure fairness and equity, it is PoMC’s this volume represents approximately 2 per radio stations around Port Phillip Bay, intention, subject to customer feedback, cent of the material dredged from the South together with regular advertising during that the fee will be allocated across the Channel during the Channel Deepening relevant fishing, boating and sports-related broadest customer base possible and Project. programs on community television station will be applied to all prices and charges Channel 31. levied by PoMC across all trade sectors. All works will be governed by an approved Working in conjunction with the Victoria This approach is considered the most Environmental Management Plan (EMP) Water Police, Parks Victoria and Transport appropriate given that the exemption of any and our detailed modelling indicates that it Safety Victoria, PoMC has backed up trade sector would result in higher recovery will not be long lasting and that the limited this campaign with the deployment of charges for the remaining trade sectors. nature of this program does not pose a threat to marine life or public amenity. authorised officers to educate, warn and, The only current charges to be excluded where necessary, fine recreational boat from this application will be the operators for anchoring in commercial There’s something about Mary Infrastructure Fee and PoMC land rental shipping channels. charges to existing tenants at 1 December. In late November, Melbourne turned on glorious weather to welcome Their Royal 5th Intermodal Asia Conference PoMC’s intention is to collect the PLF by an Highnesses, the Crown Prince and Princess appropriate increase in fees and charges Last month PoMC was pleased to host of Denmark, for the naming of Svitzer’s new outlined in the Reference Tariff Schedule and sponsor the 5th Intermodal Asia high performance tugboat, aptly named (RTS). Conference which attracted shipping and Marysville. logistics delegates from around 20 nations Our aims are twofold - to recover a fee of PoMC’s newly appointed chairman, Mark across the globe, together with strong $75 million in the first year and remain a Birrell, joined executives from Svitzer and representation from Australia. cost competitive port taking into account By Stephen Bradford, chief executive officer representatives from the fire-devastated the supply chain as a whole. Given the Hosted at the Intercontinental in Collins town of Marysville to formally welcome relative pricing of other major ports, Street, the conference was formally Their Royal Highnesses before the we believe these aims are not mutually opened by PoMC deputy chairman, vessel was christened with champagne exclusive. James Cain, and featured a wide range by Princess Mary under blue skies at of expert speakers and decision makers. Melbourne’s Docklands. PoMC is acutely aware that the introduction Victorian Minister for Ports, The Hon. Denis of the PLF represents a major change in The Crown Prince and Princess toured the Napthine, provided the keynote address the costs associated with the operation of vessel, heading to the wheelhouse while outlining the Government’s vision for the the Port of Melbourne. To signal and clearly the Svitzer sister tugboat, the Keera, shot four commercial ports. communicate the prospective changes her water cannon in a salute to the Danish to the RTS, PoMC has sought to provide To provide delegates with an insight into Royal couple. customers and stakeholders with an open the port’s operations, PoMC hosted a boat and transparent understanding of the fee The Marysville, represents a significant tour of the port’s facilities which provided and PoMC’s approach to its implementation investment by Svitzer and the state-of- the backdrop to our working context as a and collection across all trade sectors. the-art, high performance, vessel will city port. undoubtedly become the flagship of Having invited industry views, we have The conference represented another coup Svitzer’s Melbourne operations and PoMC been very pleased with the submissions for PoMC’s international relations outreach congratulates them on their vision. provided which we will closely consider which also encompasses meaningful in structuring the implementation of the In March, the Port of Melbourne will and sister and partner port relationships, fee and we thank all stakeholders for their welcome another royal ‘Mary’ when the particularly in the Asia Pacific region. In contributions. Cunard cruise vessel Queen Mary 2 makes our view, PoMC benefits from the diversity her maiden call to Station Pier. of views and approaches made possible Maintenance dredging by these relationships and through PoMC has completed simulations for the industry forums like the 5th Intermodal As industry stakeholders will be aware, transit and berthing of the majestic vessel Asia Conference. They help connect us to maintenance dredging is a critical part of which, at 345 metres, will be the longest a wider world of new thinking and fresh port operations. Yet, the public discussion cruise vessel to berth at Station Pier. We approaches to tackling the many issues, about the health of our waterways and bays expect heightened public interest to warmly opportunities and challenges our industry means that the benchmarks for delivering welcome the vessel to Melbourne. shares.
Autumn 2012 I Shipping Australia Limited 107 PORTS NEWCASTLE
A strong focus on strategic planning coupled with continued trade growth and investment in new port facilities has set a strong foundation.
By Gary Webb, chief executive officer
• ensure future growth and development industry as well as the regional, state and of the port; national economies. • provide key stakeholders with a Part of planning for growth includes clear understanding of how the port understanding the economic, social will grow and develop, and also and environmental trends that will identify the future infrastructure needs influence both the future operations to support improvements in the and trade opportunities of the port. This efficiency of the port and related understanding, together with detailed supply chain; export forecasting, has given Newcastle • ensure that the planning, growth and Port Corporation the ability to commence development of the port has regard to executing its vision with confidence. the interests of the community in The division of the port into four distinct which it operates and the principles of precincts allows the corporation to ecologically sustainable development; co-ordinate and plan areas with similar and constraints and opportunities. This • provide a strategic framework precinct level provides a practical for decision making with regard framework for the improved utilisation ewcastle Port Corporation’s to investment, development and the of land and berths, the identification of purpose is to provide safe, effective promotion of trade opportunities. infrastructure priorities and scoping for Nand sustainable port operations niche market opportunities. and deliver efficient port development Newcastle Port Corporation is forecasting The Carrington Precinct is one of oldest that enhances the economic growth of the strong growth in both its coal and non- parts of the port still in operation. It Hunter Region and New South Wales. coal trades through expansion of existing businesses and delivering opportunities handles a diverse range of commodities A major focus for Newcastle Port for new port customers. Trade of more including coal, grain, mineral concentrates Corporation is to communicate its long- than 250 million tonnes is envisaged and break bulk cargo. It also contains term vision for the port. The vision seeks by 2020 which presents a tremendous a significant marine services and ship to: opportunity for the port and maritime building zone, and is serviced by a
108 Shipping Australia Limited I Autumn 2012 designated heavy vehicle route and berth • Bulk and General Precinct – handling About 20 per cent of marine pilot transfers face rail access. non-hazardous dry bulk products are completed by pilot cutter (the other 80 including grain, briquettes and coke per cent by helicopter) and Henry Newton The Mayfield Precinct presents a unique cargoes replaces the E C Close which has been in opportunity for growth, with direct water service since 1989. frontage and the potential for deepwater • newcastle Port Corporation berthing. Within the precinct is the Operations – office, storage sheds, Future dredging works Mayfield Portside Lands, the largest dredging vessel, pilot cutters and vacant port land site on the eastern helipad As part of its long-term port planning, seaboard. NSW Premier, Barry O’Farrell, recently Newcastle Port Corporation is preparing The Kooragang Precinct is the Port stated that the NSW Government an environmental assessment to gain of Newcastle’s primary coal precinct. supported the Mayfield site being used to development approval for the future Planning is currently underway to handle multi-product, container, general dredging of shipping berths in the Port of construct the first stage of the Terminal 4 cargo and bulk terminal freight. The Newcastle. coal terminal which will expand the port’s Premier said the government, wanted to maintain the existing long term strategy The environmental assessment, which has coal export capacity in response to global for developing a diversified Newcastle been submitted to the NSW Department demand. Harbour for multiple commodities. of Planning and Infrastructure as part of a The Walsh Point Precinct is principally development application seeking consent to undertake the works, is required to used for non-coal commodities and Trade statistics products including bulk solids and liquids assess the impacts of the project. The Port of Newcastle recorded its 11th and a variety of small scale industrial uses. consecutive record trade year in 2010- The future dredging project involves The availability of berths at Kooragang 11 when 114.57 million tonnes of trade 10 vessel berths in the South Arm of 2 and Kooragang 3 for multiple users valued at $17.38 billion passed through the Hunter River, the proposed works provides a strong incentive for boutique the port. including river bank stabilisation, dredging trade types to locate in this precinct. of berth pockets and disposal of dredged Detailed precinct planning will be a focus Coal exports for the financial year material (primarily off shore). for the corporation in the next 12 months, amounted to 108 million tonnes valued with a view to maximising the utilisation of at $13.55 billion while non-coal trade of Newcastle Port Corporation is anticipating land, reviewing infrastructure requirements 6 million tonnes had total value of $3.83 development approval later this year and investigating the potential of the North billion. for the future dredging works which will Arm Channel. facilitate trade growth through the Port of The financial year statistics have just been Newcastle. further emphasised by results for the 2011 Trade growth calendar year where a new coal export Increased cruise activity The export of coal is the port’s core record of 114.1 million tonnes was set. trade, however more than 40 different Two visits by the 279-metre Rhapsody of commodities are handled through the port New facilities the Seas provided a strong start to the 2011-12 cruise season for Cruise Hunter, including alumina, aluminium, cement, I mentioned previously that our strong fertiliser products, forestry products, grain, focus on strategic planning and continued the unit operating within Newcastle Port mineral concentrates, petroleum products growth and diversity of trade is being Corporation to attract cruise ships and and steel. coupled with investment in new port naval vessels to Newcastle. operational facilities. Infrastructure within the port can Rhapsody of the Seas, carrying nearly accommodate all types of cargo including Construction is nearing completion of a 2,500 passengers and 765 crew dry bulk, bulk liquids, break bulk, project new $3.5 million operations centre to be members, was the first of 11 cruise ship cargo and containers, as well as cruise known as ‘Port Centre’ which will house visits for the current season. Spirit of passengers. The port is a critical supply the Vessel Traffic Information Centre, Adventure (16 December), Pacific Pearl chain interface for the movement of cargo marine pilots’ office, Port Services offices, (1 February), Crystal Serenity (6 February) and includes 19 operational berths, 11 of a training room, workshops and other and Discovery (9 February) completed which are allocated to handling a range facilities. maiden visits to Newcastle. The visit by of cargoes and eight dedicated to the Discovery was a special day for the port The facility has been designed to provide handling of coal (a ninth coal berth, known as two cruise ships berthed on the same greater functionality for operational as K10 on Kooragang Island, is planned day for the first time. The cruise ship was services provided by Newcastle Port joined by Pacific Sun which is making six for completion in 2013). Corporation and is being constructed scheduled home port visits in February on the eastern side of the current Pilot An important component in future trade and March. growth and diversification is our Mayfield Station. The current two-storey building development site, Mayfield Portside has been in use since 1959 but is no Part of the community Lands. The site is located on 90 hectares longer capable of accommodating port services required by the increased trade of prime riverfront land on former BHP The Port of Newcastle is a thriving and shipping in Newcastle. Steelworks land in the Mayfield Precinct. commercial port recognised as a major Newcastle Port Corporation also recently strategic asset for the New South Newcastle Port Corporation has a commissioned a $2.5 million pilot cutter Wales and Australian economies, and a Concept Plan for development of the to upgrade its fleet. The 16-metre Henry generator of employment for thousands of site which identifies five key land-based Newton is an aluminium vessel named people both directly and indirectly. operational precincts : in honour of the second longest serving Newcastle Port Corporation supports • Bulk Liquid Precinct – storage, harbour master for the Port of Newcastle. the community through a diversified blending and distribution of high Captain Henry Newton was first employed sponsorship program and recently had a quality fuels and biofuels as a marine pilot in the Port of Newcastle in 1873 and later became harbour master, great response when its free tours of the • Container Terminal Precinct – trade a position he filled for 22 years. working port were filled to near capacity volume of 1 million twenty-foot on Australia Day. equivalent units per annum The new vessel, constructed by the Port Macquarie-based company, Birdon, Newcastle Port Corporation’s strategic • General Purpose Precinct – handling has a speed of 28 knots and is capable planning will ensure the Port of Newcastle and storage of cargo containers, of operating in open sea conditions continues to deliver for the Australian heavy machinery, roll-on roll-off and equivalent to gale force winds and high economy as well as the people of break bulk cargo swells. Newcastle and the Hunter Region.
Autumn 2012 I Shipping Australia Limited 109 PORTS NORTH QUEENSLAND Sustainable export growth on the Queensland coast
By Jeff Stewart-Harris, deputy CEO, North Queensland Bulk Ports
orth Queensland Bulk This approach is based on Ports Corporation (NQBP) implementing a proven framework, Nis delivering on its robust systems, and procedures; industry framework for growth, with planning collaboration; engagement of leading underway that will see major experts; and innovation in design. expansions at Bowen’s Abbot Point As part of our commitment to and at Dudgeon Point, near Mackay. sustainable operations and One of the challenges NQBP faces responsible environmental is to deliver these expansions while management, we have continued maintaining a high standard of to maintain and improve our environmental planning and practice. Environmental Management System (EMS), which is certified under AS/ While sustainable growth is an NZS ISO14001:2004. imperative for any responsible business, NQBP is taking a This certification, approved through leading approach to environmental Swiss group Det Norske Veritas management. (DNV), is a substantial achievement
110 Shipping Australia Limited I Autumn 2012 for a port, much less for all four of investigated engineering solutions The preferred respondents are: NQBP’s export ports. to maximise terminal capacity at the Anglo American Metallurgical site. Abbot Point Coal, Macmines Austasia, North Based on the engineering studies, Queensland Coal Terminal It is difficult to look past the Port it was established that there was a (consortium of Macarthur Coal, of Abbot Point as NQBP’s shining potential for two additional terminals, Peabody Energy, New Hope example when the term ‘sustainable so the EOI was modified accordingly. growth’ is used. Corporation, Middlemount Coal and The T4-T9 project now exists Carabella Resources), Rio Tinto Coal, As with a significant portion of the which, once implemented, would Vale, and Waratah Coal. Queensland coast, Abbot Point is undoubtedly confirm Abbot Point’s located in close proximity to the position as one of the most significant Negotiations with these companies, Great Barrier Reef. coal export facilities in the world. if successful, will lead to preferred developer status which we anticipate It is a privilege and a responsibility The investment in this massive to occur by mid 2012. that we take incredibly seriously, and expansion project is currently our investment and initiatives reflect expected to be about $9 billion. It is at this stage that we will our commitment to managing our impacts. Through the EOI, six preferred commence discussions about respondents were granted the right planning and environmental While Abbot Point sits alongside to negotiate with NQBP for one of the requirements for the onshore the Great Barrier Reef Marine Park, six potential terminals. terminals and the offshore MCF. its attributes also make it the ideal location for a major export hub. It is removed from large populations, it has natural deep water, and it has the potential for expansion to meet the continued demand for resources. At present, plans for Abbot Point indicate that capacity could reach 385 million tonnes per annum (Mtpa) once the coal terminal and the offshore Multi-Cargo Facility (MCF) are complete. This is based on market information as determined through Expressions of Interest (EOI) for potential capacity. Already we have delivered 50 Mtpa, with the X50 project completed in May 2011 (an additional 25 Mtpa capacity). With multiple ways in which coal now moves in and out of the terminal, we are able to meet the export requirements of our customers more efficiently. As we celebrated the first ship loading that month we were already progressing plans far beyond the 50 Mtpa project – meaning more customers and substantially greater coal exports. In 2010 we awarded BHP Billiton and Hancock Coal with Preferred Developer status for the T2 and T3 terminals (previously known as X80 and X110). Beyond the T2 and T3 terminals, in May 2011 we called an EOI to develop the T4 to T7 terminals (30 Mtpa each) to meet our coal customers’ additional requests for capacity. The response from industry was overwhelming and, as a result, we
Autumn 2012 I Shipping Australia Limited 111 The Port of Abbot Point
The MCF itself is an environmental The Port of Hay Point is currently the • draft EIS to be presented to the necessity. By progressing a shared world’s largest coal export port. public in mid 2012; terminal (as opposed to single Through the Dudgeon Point • construction expected to user offshore berths), the MCF will commence in 2013; and minimize the need for several offshore expansion, two new coal terminals expansions. are proposed which has the potential • exports expected to commence in to add 180 Mtpa capacity to the port. 2015/16. The MCF has been designed to provide a sheltered harbour capable The project therefore has the The broad proposed scope includes: of accommodating up to 12 Capesize potential to increase the capacity of • six rail loops and dump stations; berths to facilitate exports. the Port of Hay Point to 320 Mtpa, at a cost of about $10 billion. • large stockyards using stacker To meet future export requirements, reclaimers; the MCF will support diversification This capacity is being assessed • eight new offshore berths and of the port and the development in the master planning process to of industry at the designated State two jetties to the offshore ensure that all cumulative impacts are wharves; Development Area, adjacent to the identified, assessed and managed. port facilities. The MCF will cater for a • rail spur line to Dudgeon Point; range of bulk cargo. The preferred proponents, the Adani • expansion of Half Tide Tug Group and DBCTM, alongside NQBP, At NQBP, we believe that Abbot Point Harbour to accommodate extra represents one of the most significant have worked collaboratively on the tugs; and industrial development opportunities development of the draft Hay Point • support infrastructure (roads, ever in Queensland and Australia. Development Master Plan. buildings etc.). Through a master planning approach What is even more remarkable An additional outcome of the draft we will be able to effectively and is that NQBP is also delivering development plan is that the total Dudgeon Point, a project which responsibly guide development for allocated land for the terminals, has the potential to deliver capacity the next five to 10 years. with the exception of the buffer expansions of similar magnitude. Some key draft development plan area and common use land, will be split between the two preferred outcomes include the proposed Dudgeon Point proponents. scope, timeline, and other proposed Further south along the Queensland development and operating details. This is testament to the ‘here and coast is Dudgeon Point, four now’ capacity demand that we are kilometres from the Hay Point and Outlined below is a summary of the witnessing. And as evidenced in the Dalrymple Bay Coal Terminals, south timeline, dependent on completion of Abbot Point expansion, this is not of Mackay. studies and approvals: confined to the Goonyella system.
112 Shipping Australia Limited I Autumn 2012 SYDNEY PORTS total container trade 2000/01 to GROWING AND 2010/11 (teUs) 2,020,086 1,927,507 WORKING TOGETHER 1,778,3701,784,017 1,445,3181,620,114 1,376,239 1,270,153 1,009,2961,161,316 990,485 2010/11 2009/10 2008/09 2007/08 2006/07 2005/06 2004/05 2003/04 2002/03 2001/02 2000/01
Sydney’S portS facilitate over $61 billion of trade each year, with an annual contribution to the new South waleS economy in exceSS of $5 billion.
To meet the future demands of international trade, Sydney Ports is increasing capacity at Port Botany with the construction of a third container terminal. The $1 billion Port Botany Expansion is due to be operational in 2012, providing more options for importers and exporters.
For the latest trade information and port developments please visit www.sydneyports.com.au
www.sydneyports.com.au Autumn 2012 I Shipping Australia Limited 113 PORTS port KEMBLA
Records broken for both trade and vessel visits to the port
By Dom fIGLIOMENI, chief executive officer
Trade 2010/2011 - record figures total exports of 19.8 million tonnes, up 1.6 million tonnes on the volume While attending PKPC’s customer in the previous year. Featuring in this function in July 2011, NSW Minister was coal and coke exports of 14.3 for Ports Duncan Gay took the million tonnes (up by 296,000 tonnes opportunity to announce another on 2009/2010), grain exports of 1.6 year of record numbers for Port million tonnes (up by 949,000 tonnes Kembla. The 2010/2011 financial on 2009/2010), and steel finished year saw the port again break product exports of 3.3 million records for both trade and vessel tonnes. visits to the port. Total imports of 13.8 million tonnes Total trade of 33.6 million revenue (up by 910,000 tonnes) included tonnes saw an increase of 8 per raw material imports of 8.7 million cent on the 31.1 million achieved in tonnes (up by 807,000 tonnes on 2009/2010. This was highlighted by 2009/2010).
114 Shipping Australia Limited I Autumn 2012 A slight decrease was recorded The project is a welcome Outer Harbour Rail Master Plan. in the motor vehicles and other development for the region, The objective of this plan was machinery category with figures particularly given the announcement to investigate, analyse and showing 3,821 revenue tonnes by BlueScope Steel to restructure its recommend the optimal rail layout passed through the port (down Australian operations. This project in the Outer Harbour to service 103,000 on the 3,924 in the last will create jobs for the Illawarra the potential growth in bulk trades year). region and help to ensure the long and containers. PKPC ownership Vessel visits were again at an all time term prosperity of both the Illawarra of all major rail assets in the port high for the port with 1014 vessel and NSW. The development of ensures that rail is given a high visits in the 2010/2011 year, slightly additional land in the Outer Harbour priority in the consideration of the up on the 1001 for the 2009/2010 is crucial to ensure the current port’s future transport requirements. year. regional and state economic and The master plan contributes to the employment function of the port PKPC vision of providing integrated Outer Harbour development continues well into the future. logistics solutions within the port begins and to encourage modal shift where On the 29 August 2011, NSW New tug facility practical from road to rail. It is Minister for Ports Duncan Gay During the year, work continued on expected that the Outer Harbour Rail joined Port Kembla Port Corporation the port’s new all weather tug facility. Master Plan will be considered as chairman Nick Whitlam, as well The facility will initially allow for the part of the state’s Freight Strategy. as local members, port users all-weather berthing of four tugs and stakeholders to celebrate a with provision for a further two in the Port Kembla Coal Terminal (PKCT) significant milestone in the port’s future. expansion planning history. The project included the In 2011, the Port Kembla Coal A ceremony was held to construction of a new breakwater of Terminal (PKCT) announced a plan to commemorate the start of work in approximately 250 metres in length, upgrade its facility in order to meet the development of Port Kembla’s reclamation of approximately 3000 the growing demand for coal exports Outer Harbour. The work heralded from the port. the start of a significant investment square metres of land and dredging in the future of the Illawarra region of approximately 28,000 cubic The 2010/11 financial year saw the and the next phase of the port’s metres of sandy clay. Work is nearing facility handle 14.3 million tonnes. development. completion and it is expected that In May 2011, PKCT called for it will be operational as from April expressions of interest to ascertain The Outer Harbour at Port Kembla 2012. is being developed to provide demand for additional capacity, both from existing and prospective additional land and berthing facilities Rail planning to cater for expected trade growth. customers. Indications suggest The development will proceed in a Work to develop a rail simulation volumes may increase to in excess staged fashion based on port user model to better understand the of 30 million tonnes per annum by requirements and is anticipated to capacity and capability of the 2019. take 25-30 years to complete. rail network serving the port was In order to handle this increased The work that began is just one completed at the end of 2011. demand, PKCT proposes to upgrade component of Stage 1 of the Undertaken by the University of its facility in two stages: Outer Harbour development. The Wollongong’s SMART Infrastructure facility and the CSIRO, the project Stage 1 will increase capacity to By Dom fIGLIOMENI, chief executive officer reclamation works will create additional port land to accommodate examined the supply chain of bulk approximately 22.5 million tonnes new port customers. When this products – including steel, grain by 2013. This stage of the work stage is completed the facilities and coal – to and from the port will involve replacing or upgrading will allow storage, handling and and investigated how the existing existing plant and equipment. It processing of bulk cargoes. rail network can support the is expected that this stage will be future expansion of the port. The completed over an 18-month period. A significant portion of the research focussed on issues such reclamation will provide land for Stage 2 will involve redevelopment as future demand and rail capacity, Cement Australia’s proposed cement of Berth 101 (which may include congestion points recognising that grinding mill. The remaining area dredging and land reclamation), passenger and freight trains share will be available for development construction of a new ship loader the same tracks. Participants in the of other bulk or break bulk cargo and coal reclaim and ship loading study included Port Kembla Coal facilities. conveyor system, extension of the Terminal, BlueScope Steel, NSW existing coal stockpile area to the The location for this project has Transport, Australian Rail Track south and a new coal stockpile particular historical significance. In a Corporation, RailCorp and PKPC as stacker. Stage 2 is forecast for case of “back to the future” for the the project manager. port, the site for the Outer Harbour completion around 2016 once the new port growth is the exact place In conjunction with this work, was appropriate statutory approvals have where the port first started in 1898. the development of the been obtained.
Autumn 2012 I Shipping Australia Limited 115 PORTS SYDNEY port botany expansion project a major milestone
By Grant Gilfillan, chief executive officer
biggest infrastructure projects in this dredging of approximately 7.8 million cubic nation’s history and when fully operational metres of fill material to create shipping will almost double the capacity of the port. channels and berth boxes. This great achievement is tangible Other works include dedicated road evidence that the three-year access to the new terminal area, additional transformation of corporate culture at sidings to provide rail access to the new Sydney Ports is underwriting an entirely terminal area and additional tug berths and new and effective business model, moving facilities. from a landlord providing services like As always, the environment and the pilotage and navigation, to a supply-chain community had high priority in the leader driving substantial reforms. planning and construction phases. This The project began in 2005 when Sydney includes $30 million for environmental Ports Corporation obtained Government works such as the rehabilitation and he on-time on-budget hand-over approval for expansion of the existing port expansion of Penrhyn Estuary to create a last year of the billion dollar Port through reclamation of 60 hectares of land. secure estuarine environment. TBotany Expansion project was a major milestone in the drive by Sydney The expansion site is adjacent to the For the community, that funding also Ports Corporation to achieve greater existing Patrick terminal and will provide provided facilities such as a large boat productivity and efficiencies in the way it significant additional capacity to meet ramp, lookouts, pathways and a school does business. projected long-term trade growth. gymnasium. The third terminal at Port Botany – to It features 1,850 metres of additional wharf We recognised from the outset that be operated by stevedoring company face for five extra shipping berths, with doubling the port’s capacity would greatly Hutchison Port Holdings - is one of the depths of up to 16.5 metres. This involved increase demand on local infrastructure
116 Shipping Australia Limited I Autumn 2012 and challenge the efficiency of supply performance through new performances The new BLB2 will provide sufficient chains. leases and also through close collaboration. capacity for the port well into the future.. One way to address this was to build Our logistics chain improvements—through It will be an open-access, multi-user berth, performance incentives into the stevedores’ PBLIS—are also about sustainability on operating on a 24 hour/7 day per week leases to encourage them to be more a massive scale. If Sydney Ports is able basis and designed to accommodate productive in the way they operate. to bring all its logistic chain efficiency 120,000 dead weight tonne vessels to a initiatives to fulfilment, it will massively cut maximum of 270 metres length overall. So if they outperformed they’d pay less its carbon emissions. rent or more if their performance was substandard. There will be more boxes on rail, more Sydney’s cruise market boxes per truck trip and trucks will be But one of the biggest challenges facing Port Botany Landside Improvement parked in a dedicated truck marshalling Sydney Ports this decade is the booming Strategy (PBLIS) area so that they do not have to sit on the growth of Sydney’s cruise market. side of the road idling in community areas. We also developed and implemented The number of cruise ship visits to the Port Botany Landside Improvement Sydney Ports is making a difference, Sydney Harbour this year will increase Strategy (PBLIS), which creates a because greater efficiency in transport dramatically—yet again. Following 150 commercial relationship between road means fewer emissions. visits last year, 214 ship visits are scheduled transport carriers and stevedores to ensure A key challenge facing the PBLIS team is for this year. That’s a 43 per cent increase. there is an efficient and consistent level of lifting the rail mode share to and from the service with minimal delays. This extraordinary growth shows no sign of port. slowing, with 264 ship visits already booked Sydney Ports had previously identified that Our rail strategy is to double the percentage for the following cruise season in 2012/13. the barrier to achieving the full capacity of of containers carried to and from the port our port footprint was the interface of the The Australian cruise industry is now the by rail by 2021. transport industry – trucks and trains – with fastest growing segment of the tourism the port. market, with Australian passenger numbers Intermodal Logistics Centre (ILC) increasing by 27 per cent in 2010. Before we initiated PBLIS reform process, the truck turnaround time at Port The proof of our commitment to rail is Sydney Harbour is Australia’s premier Botany was unacceptably variable and our current development of an Intermodal cruise ship destination and the only city unpredictable. Logistics Centre (ILC) at Enfield to service in Australia with two dedicated cruise the port via dedicated freight rail line passenger terminals. The net effect of PBLIS is that in the access. 12 months since implementation, truck February this year is the high point of the turnaround times have come down from Construction is now underway and with cruise season, with a new record of 33 ship around 55 minutes to an average 30 Hutchison appointed the preferred operator, visits, compared to 27 for February last minutes. the ILC is expected to be up and running in year. mid 2013. PBLIS has been highly successful; the Sydney Ports is working with the cruise penalties that flow back and forth through This 60-hectare site will incorporate an industry to provide the right services and PBLIS between the transport companies intermodal terminal, empty container infrastructure to support the growth in and the stevedores, almost cancel each storage facilities, distribution centres and cruise shipping. other out, so the net direct financial impact warehouses. Work has begun on a new $57 million is minimal, and the whole industry now This project is currently the largest fit-for- behaves more productively and cost Cruise Passenger Terminal at White Bay purpose facility of its kind in Australia and and Sydney Ports is also developing a effectively. is integral to the efficient running of an master plan to undertake a significant expanded Port Botany. This strategy has worked because we not upgrade of services and infrastructure only have the NSW Government supporting The ILC will provide open access facilities needs at the Overseas Passenger Terminal us in the reform process, but also a team close to the catchment of metropolitan at Circular Quay over the next few years. of people inside the corporation motivated import and export businesses and provide If the last three years have been to make a difference to the efficiency of much needed empty container storage transformational for Sydney Ports the port - that is the great success story of capacity for Sydney. PBLIS. Corporation, this year will bring further It is expected to achieve up to 300,000 improvement in how we perform—and more One of the next challenges for port and Twenty Foot Equivalent Units (TEUs) of intensity. logistics is to look at the efficiencies of port-related throughput by rail once fully There have undoubtably been many the empty container parks, which form a operational. vital link in the supply chain – particularly achievements in the past few years but few greater than the zero lost time injuries understanding the correlation between Bulk Liquids Berth (BLB2 truck trips made to empty container parks achieved by Sydney Ports staff and and then on to the port terminals. In other important infrastructure, contractors in the last financial year. construction of a second Bulk Liquids Sydney Ports’ staff worked hard to reach We also need to increase our focus on Berth (BLB2) at Port Botany is also now this milestone through direct involvement in shipside port congestion which has been underway. exacerbated by events like severe weather, regular workplace inspections and keeping equipment reliability and industrial relations Sydney Ports has operated a Bulk Liquids safety as the first issue on any agenda. issues. Berth (BLB1) at Port Botany since 1979 - The New South Wales Government has now the main products handled there include begun to investigate the refinancing of Port There is no single cure for all these issues refined fuels, gases and chemicals. but it is incumbent on all parties, including Botany, looking to free up capital to reinvest Sydney Ports, to work together to make This berth has been occupied on average in transport infrastructure as well as to bring our ports as efficient as possible and lift our between 50-60 per cent of the time for in private investment. global reputation which had been tarnished the past 10 years and more recently has One thing is certain - over the next three in 2011. experienced 60-65 per cent average berth to four years, Sydney Ports is likely to be occupancy. On the positive side, we have a new leaner and tighter in everything it does, but terminal and new operator in Hutchinson With the growth in bulk liquids trade at it will not lose its commitment to continuous coming on stream in 2013 but in the interim, double digits, ship queuing is likely to occur, improvement in managing and operating Sydney Ports is taking a leadership role with increasing costs which are then passed our working harbours and working with the two existing stevedores by encouraging on to industry and ultimately to NSW customers to meet their business needs, them to improve their respective operational consumers. current and future.
Autumn 2012 I Shipping Australia Limited 117 PORTS TASMANIA Tasports remains committed to infrastructure investment
Key projects “All these capital projects will 10 Year Plan enhance customer experience and Despite a difficult trading environment Tasports has a strong strategic plan state-wide logistics efficiencies, in 2011, Tasports continued to with clear and measurable objectives with port-rail interfaces taking on invest in port infrastructure across to manage its diverse operations. consistent characteristics to rail Tasmania. Tasports’ chief executive Tasports’ 10 Year Infrastructure Plan Paul Weedon announced the go- hubs in other areas of the state,” Mr was also developed over the past ahead for two major projects, Weedon said. year. committing $12 million to the “Easing freight congestion at Macquarie Wharf Shed No. 2 Burnie is core to the Burnie Port “The development of a redevelopment in Hobart and Development Plan, and creating comprehensive asset life-cycle Devonport Airport terminal upgrades, database to aid the prioritisation while also increasing its maintenance a dedicated facility for cruise and of infrastructure, maintenance and spend by 60 per cent in 2010/11. Antarctic operations in Hobart will business development programs is Detailed design phases have also have significant benefits for this been completed for two additional market sector. key to our 10 Year Plan,” Mr Weedon projects: said. “Tasmania has the largest number of • Development for Burnie rail Southern Ocean research scientists “It is built from commodity segment yards and port precinct to ease per capita of any Australian capital forecasts and a holistic condition congestion and enhance the port city, and is also enjoying a 150 assessment of wharf infrastructure, rail productivity. per cent increase in cruise ship channels and berths, land buildings • Development of Bell Bay port-rail bookings over the past decade, with and fleet assets to recommend an interface through upgrades to link investments in infrastructure for this optimal asset portfolio and the capital roads, enhancement of rail segment critical to Tasports and the and funding requirements of the crossings. Tasmanian community.” business.”
118 Shipping Australia Limited I Autumn 2012 With a number of significant projects with simplified tonnage rates and important that we remain focused on in planning and implementation standardised wharfage rates. our strategic objectives and purpose, phases across the state, and a “The new pricing structure has been particularly in these challenging challenging market climate, Tasports’ a positive step towards achieving times,” Mr Weedon said. focus on its customers, stakeholders a consistent and simplified tariff “Efficiency and opportunity will very and the markets within which it across all ports to meet customer much remain the flavour of 2012, operates, have never been more expectations, and the first since as we continue to progress our key important. the ports amalgamated to become projects and build on our customer Tasports in 2006,” Mr Weedon said. Our customers and markets relations to understand their requirements and plans. Tasports has encountered significant The future market challenges this year, with Despite the operating challenges “We need to ensure that we are in some segments including forestry Tasports faced in 2011, the company the strongest position to facilitate and containers undergoing major remains strong in its ability to trade for the benefit of Tasmania, and change. “The combined effect of deliver on critical infrastructure remain critical in the state’s logistics these market changes is significant and maintenance projects. “It is supply chain.” revenue, volume and activity downturn,” Mr Weedon said. “However we have worked hard to Architect impression of Macquarie secure sustainable cost efficiencies in Wharf Shed No. 2 redevelopment in Hobart response to this situation and remain responsive to any further changes. “Our priority is to deliver on our maintenance schedule and key business projects to continue to improve our efficiencies and meet our customer requirements.” 2011 also saw Tasports roll out a state-wide pricing structure. The first stage was completed in January 2011 and included new pricing for pilotage services and fuel wharfage fees across the state, with the second stage implemented in August
Autumn 2012 I Shipping Australia Limited 119 PORTS TOWNSVILLE
Few phrases invoke such a mixed reaction of excitement and caution as “record capital investment”.
By barry holden, chief executive officer
ort of Townsville Limited has, challenge of having one of the most for some time now, been at diverse regional commodity and Pthe planning board, working customer bases in the nation. hard behind the scenes to ensure Townsville is capable of handling a Like every other port listed in this range of new products now, and into publication, we strive to be a leader in the future. the provision of innovative, efficient, and effective port services. With such We are Queensland’s third varied stakeholders – including a largest multi-commodity port; the growing community – it is imperative international gateway to rich and our project pipeline remains ahead of productive mineral and agricultural the game. regions, industrial heartlands and regional population centres. And In the last calendar year the Port of with this comes the blessing and Townsville Limited team has made
120 Shipping Australia Limited I Autumn 2012 significant progress on a range of enhances port access, increases capital projects that will add new capacity and efficiency as well as dimensions to Townsville’s already improving the amenity and safety of diverse range of services and residents. facilities. October heralded the start of the Port The $124 million Townsville Marine of Townsville’s quayside makeover, Precinct, for example, was opened with Premier Bligh on hand to turn by Queensland Premier Anna Bligh the first sod on the $118 million in November after 14 months of Townsville Port Inner Harbour construction. This is a project in Expansion (TPIX). The expansion which we take great pride – the site encompasses the $85 million project has been reclaimed from inter-tidal to reconstruct and extend the port’s mud flats to a carefully planned, existing Berth 10 and build a multi- integrated precinct that will serve purpose passenger terminal, as north Queensland with state-of-the- well as the $33 million upgrade of art marine industrial facilities for the Berth 8. The new terminal facility will future. greatly increase the attractiveness of Townsville for cruise and military The construction of the precinct also activities by providing certainty for clears the way for the $190 million visits and increasing ship scheduling Townsville Port Access Road which flexibility and will provide additional is scheduled to be completed this commercial capacity. year. This road is critical to the future development of the Port of Townsville The new ship loader Xstrata will as it will provide direct road access to install on Berth 8 meanwhile will have the southern and western highways near triple the materials handling While not directly associated with and allow longer, more efficient truck capacity of that it replaces, and the PEP, the next stage of seaward configurations to service the port. will help secure the export future of growth at the Port of Townsville mineral concentrates and fertiliser The proposed $300 million is likely to come in the form of a products from northwest Queensland Townsville Eastern Access Rail new Berth 12, with the corporation valued at more than $3 billion a year. Corridor has likewise moved a currently in ongoing discussion with step closer to realisation after the In the background we have been several prospective users of the project ticked all the boxes in a progressing the planning and facility. Queensland Government preliminary approvals for the $1.3 billion Port Importantly, trade throughput evaluation study. The Government Expansion Project (PEP). This project continues to set records against this has announced it will now call for involves the staged reclamation fervid backdrop of construction and expressions of interest from private of 100 hectares of land and the planning activity. Total trade through sector operators willing to build construction of six additional berths the Port of Townsville in 2010-2011 and operate the new rail link which over the next 20 years. Deepening reached 10.6 million tonnes – the will branch off from the existing and other minor modifications to highest volume ever traded through and continue alongside the Port the approach channels will also be the Townsville Port in its 116-year Access Road and into the port. Again required to improve accessibility history. Out of that performance this infrastructure investment will for vessels and allow for increased we achieved a number of records, provide a strategic transport link that shipping movements. including a 20 per cent jump in TEU movements and value of international exports at $6.2 billion. Looking forward, the prospects for sustained growth remain strong, with a number of new trades coming online this financial year and many others on the horizon. Already we have achieved record first-half trade throughput of 7.4 million tonnes, a remarkable effort made all the more impressive when one considers berths 8 and 10 are out of action for the TPIX project. There are always challenges ahead. But I am confident that by continuing to invest and by continuing to provide necessary infrastructure through planning and sustainable development that the Port of Townsville will have the foundation to remain northern Australia’s port of choice for decades to come.
Autumn 2012 I Shipping Australia Limited 121 International developments
FONASBA annual meeting in Sydney a great success
By Jonathan c. williams, general manager, FONASBA
last visit in the late 1990s. I was therefore date, the agendum begins with a detailed very pleased to have the opportunity to summary of the European Commission’s let my family and more than 75 other current policy actions and is followed by delegates and partners see what was so more in depth analyses of a number of great about Sydney and, in many cases, the major topics including, this year, the other parts of the “wide brown land”. Commission’s Transport White Paper 2011. This projects the Commission’s Sadly, the overwhelming desire to get out intentions for the future of European and see it all was constrained by the need transport out as far as 2050 and proposes to participate in the Annual Meeting but measures to enhance its efficiency and before starting we had the opportunity competitiveness as well as reducing the to get a feel for the city on a bus tour continent’s dependency on oil by boosting that took us through the city itself to its use of sustainable energy sources. Mrs Macquarie’s Chair and then out via Woolloomooloo to South Head, the Gap One of the most contentious issues and the Pacific Ocean. currently being enacted in Brussels is the decision to limit the sulphur content of Work began on Monday 10th with ive years of planning and fuel used by ships operating in the Baltic meetings of the boards of FONASBA’s organisation came together in and North seas to 0.1 per cent by 2015, European Committee (ECASBA) and the October 2011 when FONASBA a move that many, including ECASBA, F main Executive Committee which took up moved to Sydney for its 42nd Annual fear will drive much of the cargo currently the remainder of the day. Having assured Meeting, an event that for many of us moving by sea back on to roads, thus ourselves that FONASBA was in excellent turned out to be one of the best for a very undoing all the time and effort expended long time. Llew Russell reported on the in recent years to succesfully develop meeting from SAL’s perspective in the short sea shipping. The measures summer 2011 edition of this magazine and proposed exceed those in MARPOL it now gives me much pleasure to do so Annex VI and ECASBA is working closely from the FONASBA viewpoint. with its partner organisations to bring the European legislation back into line with For me at least, the realisation the MARPOL provisions. that we had finally made it to Australia came when I awoke Customs developments, including for the first time in my room at the 24 Hour Advance Cargo the Four Seasons hotel after a Declaration regime previously very late arrival from London the mentioned by Llew Russell, are a night before. Without moving, permanent ECASBA agendum item. I looked straight at Sydney Llew also mentioned the role of the Harbour Bridge. I didn’t have to agent as the port single window and move very far before the Opera the meeting received presentations House, Circular Quay and the from our Portuguese and Norwegian ferries, all bathed in the golden delegates on recent developments in glow of another perfect morning, electronic vessel reporting procedures came into view. I have stayed in many where in both cases the agency hotels in many places during my time with community is fully engaged. Hopefully FONASBA but have never had an outlook their success in keeping the agent at the that even comes close to beating that one! centre of the port call will be replicated elsewhere in Europe and beyond as ship- It certainly brought to life the words on order, we moved over the following day reporting goes paperless. author Clive James’ plaque on Writers to the Plenary Meetings of the FONASBA Walk at Circular Quay about the “yachts Standing Committees, covering Europe The following day was the turn of the in Sydney Harbour racing on the crushed (ECASBA), Chartering & Documentary broking sector and the C&D Committee. diamond water under a sky the texture of (C&D) and Liner & Port Agency (L&PA) The presentation by Dr David Bayne on powdered sapphires” and although the matters. future trends in world fleet development abundance of natural blessings he went that Llew mentioned was extremely on to speak of had not played any part Given the global impact of maritime interesting and very well-received. That in sending me away the last time I was legislation and other measures applied “bigger is not always better” – or indeed in Australia – the demands of my day job in Europe, the ECASBA meeting is inevitable - came as something of a with Patrick Agencies did that - they had attended by delegates from all over the surprise to some delegates. The regular certainly been calling me back since my world. In order to bring everyone up to market sector reports, summaries of
122 Shipping Australia Limited I Autumn 2012 attended by around 140 delegates, partners and invited guests, including all our excellent sponsors. The Gala Dinner was the culmination of an excellent social programme which also included visits by partners to the Blue Mountains and Taronga Zoo and in the evenings we all enjoyed the visit to Bondi Beach for the Welcome Reception, the dinner cruise on Sydney Harbour – the most spectacular place I have ever celebrated a birthday – and the excursion to the Tobruk Sheep Station at Maroota on the Saturday for sheep shearing, boomerang throwing, whip cracking and the opportunity to sample bush tucker! The 42nd Meeting was also unique in that Tobruk Sheep Station at Maroota it saw the first wedding within FONASBA. Lars Petter Stofjord, chairman of the Norwegian Shipbrokers Association, made good on the promise he made in Varna, where they got engaged, that he and his fiancé Hilda Lovstrand would tie the knot in Sydney. With great ingenuity Centrepiece of the afternoon session they managed to find a Norwegian church was a presentation by our colleagues where, in full traditional wedding dress, from CASA on the rapid development the ceremony took place on Monday 10 of the third party logistics sector in October. They were supported during the China which, at the time of the meeting, ceremony by colleagues and friends from already comprised some 30,000 logistics the Norwegian and Danish associations. companies and 730,000 related operators! FONASBA’s regional range committees Sadly all good things must come to an met before the L&PA meeting and made end and eventually we all had to return short reports to the committee on the home, either directly or via other parts of main issues in their regions. This year Australia. Irrespective of our routes home the established Inter-American (CIANAM) however, I hope that as a result of the and Mediterranean & Black Sea (MABSA) meeting, everyone that attended now has committees were joined by the newly some appreciation of the affection that I formed WestPac and Indian Ocean have for Australia and its people. Whilst Committee whose inaugural members not the overriding objective of our annual the activity undertaken by BIMCO and included Australia, China, Japan, the meetings, all our hosts hope, quite rightly, INTERTANKO’s Documentary Committees Philippines and South Africa. that some of their justifiable pride in their country will rub off on the visitors and and the ever-popular review of the issues The meeting ended with an open they take fond memories back home with causing claims against brokers and discussion on what the L&PA committee them. On that score, the Sydney meeting agents that form the core of this meeting could do to support FONASBA’s agent was an outstanding success. With it now were this year supplemented by a report members, a presentation on the structure just a very fond memory, we look forward from the Norwegian association on their and membership profile of individual to Venice in 2012. collaboration with BIMCO to revise the national associations and another on an industry standard “SALEFORM” sale and initiative to provide a pension scheme and purchase form, and a detailed discussion professional indemnity cover for Italian on the revision of the IMO Bulk Cargo agents and brokers. Code, with particular emphasis, as we were in Australia, on the liquefaction of Llew has already covered in detail the iron ore and other cargoes. excellent series of presentations that comprised the Friday morning seminar If it is Thursday it must be time for agency session so I will move on to the Council matters to be discussed in the L&PA Meeting, the final meeting of the work Plenary meeting. This committee oversees programme. three of FONASBA’s major projects, the Quality Standard, and the Port Procedures Council is the Annual General Meeting of and Agents Remuneration surveys, FONASBA and therefore covers internal all of which were discussed at length. administrative issues such as approving Committee chairman Glen Gordon Findlay the accounts, the Governance Handbook gave an online demonstration of the and similar. This year, however, it also saw current status of the procedures survey the granting of Honorary Membership of and called on all FONASBA associations the federation to regional vice president to provide information on their ports for Asia Takazo Iigaki of Japan for his to make the survey as comprehensive service to the federation including as possible before it goes public later his excellent work in promoting and in 2012. The Agents Remuneration developing FONASBA in the strategically Survey has been developed as a guide important Asia Pacific region. FONASBA to the range of charges being levied on has only bestowed the award on six bulk and container traffic throughout members in 42 years and that is ample the membership. It doesn’t include evidence, if required, of the importance information on the charges being levied, of the award and Takazo was extremely but provides a very useful summary of proud to be so honoured. The award what is out there. The impact of third party was actually made by president Chris disbursements account service providers Papavassiliou at the Gala Dinner held on agents also remains on the agendum. at the Cruising Yacht Club of Australia Lars Petter Stofjord with his new bride
Autumn 2012 I Shipping Australia Limited 123 International developments
Navigating the politics of climate change
By Simon Bennett, director external relations, International Chamber of Shipping (ICS)
n July 2011, the 150 or more nations has recommended that all new ships that shipping is already delivering and the that belong to the International Maritime currently covered by the regulations expectations that total maritime trade will IOrganization (IMO) concluded a are delivered with an EEDI, even where continue to expand in response to the ground breaking agreement to reduce flexibility exists to apply for flag state (long term) predicted growth of the world the shipping industry’s CO2 emissions. waivers (as agreed by IMO for political economy. This is the first such global agreement reasons, which are elaborated on below). But in the face of rising fuels costs, for an entire industrial sector. As a Reducing CO2 emissions through shipowners reasonably believe that they result of amendments to the MARPOL reducing fuel consumption is a matter of already have every incentive to improve Convention, new ships will have to be enlightened self interest for ship operators, their fuel efficiency. The introduction of built with an Energy Efficiency Design and the industry is fully engaged in the low sulphur fuels, as part of a separate Index (EEDI), while from 2013 all ships, continuing discussions at IMO about IMO agreement, is also expected to including existing ships, will have to utilise refining the EEDI and extending it to ship types for which EEDI formulae have increase bunker costs by in excess of a Ship Energy Efficiency Management 50 per cent, and with 2012 looking like Plan (SEEMP) in order to improve fuel not yet been finalised due to the more problematic nature of the calculations. one of the most financially difficult years consumption and reduce emissions. for shipowners in living memory, now As a result of this IMO agreement on Above all, the IMO agreement is strongly is certainly not the time to introduce an technical and operation measures, and supported by shipowners because of MBM. Many in the industry actually think the steps that ship operators are already the overriding need for global rules for that governments may be more interested taking to reduce fuel consumption, the a global industry. If different rules were in how much money can be squeezed industry is confident that it can deliver a to apply to ships at different ends of a from shipping through MBMs, rather than 20% reduction in emissions per tonne/km voyage there would be chaos, inefficiency any further emissions reductions that they by 2020 across the entire global industry. and serious market distortion. A regional might actually deliver. approach to reducing ships’ CO2 Objective observers might be forgiven The challenge for ICS, as the industry’s for thinking that this is a very impressive emissions would also be far less effective in actually reducing CO2 - climate change, principal international trade association, is achievement, especially as shipping is that notwithstanding shipowners’ justified already, by far, the most energy efficient of course, is a global and not a regional challenge. suspicions about MBMs, it is necessary form of commercial transport. However, for the industry to address the politics of as will be explained, many governments However, notwithstanding the efforts climate change and some difficult political still expect much more. In the context by the industry to reduce its emissions realities. of the new Green Climate Fund that has through technical and operational been established by the United Nations measures, the industry is under pressure The first of these is that high level Framework Convention on Climate to accept the additional burden of so- discussions at UNFCCC about replacing Change (UNFCCC), the World Bank has called Market Based Measures (MBMs). the Kyoto Protocol, which is in large part actually proposed that shipping should driving the agenda. In addition, there pay US$25 billion a year for the privilege Market Based Measures to reduce are the significant, and some would of transporting 90 per cent of the world’s CO2 remain a very controversial issue argue unrealistic, commitments that trade. among shipowners. Some governments, have already been pledged by nations including Australia, argue that MBMs such as Australia, as well as European The IMO agreement on technical and will somehow incentivise shipowners to Union countries, to reduce their total operational measures enjoys the full achieve further efficiency gains, and might CO2 emissions dramatically. Unless IMO support of the shipping industry. The bridge the gap they perceive between can demonstrate that it is making real International Chamber of Shipping (ICS) the significant efficiency improvements progress towards the development of
124 Shipping Australia Limited I Autumn 2012 an international MBM for shipping, the industry is faced with the unwelcome prospect of regional regulation. The other important political reality is the decision by the last UN Climate Change Conference in Durban, in December 2011, to establish the Green Climate Fund. This aims to generate US$100 billion a year by 2020, in order to help mitigation and adaption projects in developing nations. In crude terms this can as seen as the price of persuading developing nations to agree to continue negotiations on a new climate change accord, scheduled for adoption in 2015. This new agreement is meant to include carbon reduction commitments by emerging economies, not just from developed (or so called ‘Annex I’) nations as is the situation at present. Between now and the next UN Climate Conference, in Qatar, in December 2012, the UNFCCC members will have to determine how this money is going to be raised. A year ago, a high level working group set up by the UN Secretary General, and the kind of sums which the World Bank by China, India and Brazil - have been chaired by the premiers of Norway and has suggested would be totally inequitable reluctant to support an IMO agreement Ethiopia, appeared to suggest that some and almost certainly viewed by many that might prejudice their positions at the US$16 billion a year could be raised from emerging economies as a tax on trade – a high level UNFCCC negotiations. kind of green protectionism. international shipping. But in a more In the event, with the industry’s full recent World Bank report, prepared for the However, the other important goal for support, IMO has already proved itself G20 Summit in Cannes, it was suggested the shipping industry is the avoidance of to be eminently capable of delivering a that shipping should contribute some ‘double charging’ though contributions to global solution for shipping which can be US$25 billion a year. And the demands the UNFCCC and via any MBM agreed reconciled with the CBDR principle. The do not stop there. Some governments by at IMO. There would therefore seem to July 2011 agreement, which adopted have publically suggested that only a be need for a linkage between any IMO binding global regulations for technical proportion of any money collected from MBM and any shipping contribution to the and operational measures to reduce ships’ shipping should actually go into the Green Fund. emissions, will enter into force in January Green Fund, and that a significant chunk 2013 and apply to at least 90 per cent of should go straight into the coffers of the The other political reality that shipping has the world’s tonnage. To address CBDR, governments collecting it, implying that to address is the UNFCCC principle of the agreement included regulations the charge imposed on shipping could Common But Differentiated Responsibility on technology transfer and technical actually be even more. (CBDR), whereby the emission reduction assistance for developing nations, as well The position of the shipping industry, as commitments accepted by developing as the flag state waiver with respect to represented by ICS, is that if governments nations must be less than those of mature the EEDI mentioned above (although the decide that shipping should contribute economies. The challenge has been how industry has decided not to make use of to the Green Fund, then the payments to reconcile this with the IMO principle of this). uniform global rules. One the one hand, should be proportionate to shipping’s To gain the support of nations like China the European Union threatens regional contribution to the worlds’ total CO2 and India for an IMO MBM will also action if IMO fails to deliver on CO2, while emissions (about 2.7 per cent according to require account to be taken of CBDR. the most recent IMO study). To contribute on the other, developing nations - led However, reconciling the CBDR principle with an IMO MBM, which must apply equally to ships of all flags in order to avoid market distortion, will not be an easy task. However, if any of the money collected by an IMO MBM was channelled to the Green Fund (perhaps via an IMO compensation fund into which money raised from shipping was paid) this could be a means of meeting the CBDR principle because developing nations would be getting out more than they were putting in, while preserving the level playing field for shipping. ICS will continue to support IMO as the body where discussions about a shipping MBM, and any linkage to the Green Fund should take place. However, the industry will firmly resist any notion that it can be regarded as a cash cow, and will continue to emphasise that the best means of delivering meaningful CO2 emissions reductions will be through technical and operation measures, rather than a mechanism whose ulterior motive appears to be raising money.
Autumn 2012 I Shipping Australia Limited 125 maritime law
New Australian civil and criminal penalties for pollution by shipowners, charterers and operators
By Robert Springall, partner, Holman Fenwick Willan
he Maritime Legislation requires member states to impose under the PSPPSA in respect of oil Amendment Act 2011 (Cth) penalties that are sufficiently severe to discharge to include “charterers”; T(Act) came into force on 5 discourage violation of the Convention and December 2011. and to ensure that the penalties must be equally severe no matter where (d) increasing the maximum penalty The Act amends the Navigation Act violations occur. Formerly, Australian for oil discharge offences under 1912 (Cth) (Navigation Act) and federal legislation implementing the PSPPSA from $55,000 to Protection of the Sea (Prevention of MARPOL was not consistent with $2.2 million for individuals and Pollution from Ships) Act 1983 (Cth) from $275,000 to $11 million for (PSPPSA) through the introduction of legislation in individual Australian corporations. new offences and the expansion of states, which imposed more onerous liability and increase of penalties under penalties for marine pollution offences. The legislation is silent as to whether existing offences. the extension of liability to charterers Major changes includes all types of charterers or Rationale for reform The Act increases the deterrence just a particular type (e.g. demise The Act was introduced in response against pollution emanating from ships charterers). However, there is a real to two recent maritime environmental by: possibility that courts will apply a broader interpretation of “charterer” as incidents, namely, the grounding (a) introducing into the Navigation there is no apparent legislative intent of the Shen Neng 1 in 2010 on the Act new offences relating both to to restrict the term to any particular Barrier Reef (resulting in a spill of operating a ship in a manner approximately 4 tonnes of heavy that has or may cause pollution type of charterer. fuel oil) and spill of approximately and failure to report ship As part of the new civil penalty regime, 270 tonnes of heavy fuel oil from the movements in ecologically the Act also introduces an accessorial Pacific Adventurer off Brisbane after sensitive areas; 31 containers were lost overboard liability regime under which people damaging the ship’s hull. (b) setting out in the Navigation Act a who aid, procure, induce or are formalised regime empowering knowingly concerned in or conspire The Act is also intended to bring AMSA to seek the imposition of to cause a contravention of particular current Australian Commonwealth pecuniary penalties for provisions of the Navigation Act are legislation into line with the contraventions under the deemed to have committed the same International Convention for the navigation Act; contravention themselves. Prevention of Pollution from Ships (MARPOL), to which Australia is a (c) extending the list of persons who Each of these changes are considered signatory. MARPOL Article 4(4) may be charged with an offence in further detail below.
126 Shipping Australia Limited I Autumn 2012 New offences under the Navigation offence rendering the master liable for $660,000 x 5) after applying the Act relating to actual or potential a penalty. The maximum penalty for corporate penalty multiplier. pollution or damage to the marine the offence is $26,400.5 environment Extension of operation and increase Whilst the master is the party liable of penalties under the PSPPSA The Act introduces into the Navigation for the offence, an owner or charterer Act several new offences aimed at or other accessory may now also The Act amends the PSPPSA with a preventing pollution in the coastal be liable under the new accessorial view to providing a stronger deterrent sea and exclusive economic zone of liability provisions (see below). against pollution from the discharge of Australia (Protected Area) and beyond. oil and oily residue from ships. It is now an offence for: New civil pecuniary penalty and accessorial regime under the Under the PSPPSA it is currently an (a) the master of any ship to operate Navigation Act offence if: the ship in a reckless or negligent (a) oil or an oily mixture is discharged manner that causes pollution or The Act amends the Navigation Act into: damage to the marine environment such that it now includes a mechanism of the Protected Area;1 for AMSA to request the imposition of (i) in the case of an Australian civil pecuniary penalties for breaches ship, any seas whatsoever (b) the master of any ship to recklessly of sections of the Navigation Act other than waters of an or negligently fail to ensure that the that impose civil penalties (known as Australian State (including the ship is operated in a manner that civil penalty provisions).6 These civil northern Territory) with does not cause pollution or penalty provisions include the new legislation giving force to damage to the marine environment offences set out above. of the Protected Area;2 mARPOL; and The pecuniary penalty payable (known (ii) in the case of non-Australian (c) the master of an Australian ship as a civil penalty order) must not be ships, the Australian exclusive to operate the ship in a reckless or more than the penalty specified in economic zone and waters near negligent manner that causes the relevant section (in the case of an pollution or damage to the marine individual) or five times that penalty any Australian States (including environment of seas that are (for a corporation).7 the Northern Territory) without beyond the Protected Area;3 and legislation giving force to The Act also introduces an accessorial mARPOL; or (d) the master of an Australian ship liability regime similar to the one to recklessly or negligently fail to applying under the Competition and (b) an Australian ship discharges ensure that the ship is operated Consumer Act 2011 (Cth) (formerly the oil residue into any waters other in a manner that does not cause Trade Practices Act 1974 (Cth)). Now, than waters of an Australian State pollution or damage to the marine a person who has: (including the Northern Territory) environment of seas that are with legislation giving force to 4 beyond the Protected Area. (a) attempted to contravene a civil mARPOL. penalty provision; If any of the above offences are These strict liability offences are committed, the master is liable to pay (b) induced, aided, abetted, deemed to have been committed by a penalty. The maximum penalty for counselled or procured a both the master and owner of the ship. each offences is 600 penalty units, contravention of a civil penalty The maximum penalty was $55,000 in i.e. $66,000. In addition, each of provision; respect of the master and $275,000 the above offences can be deemed in respect of the owner (assuming the aggravated offences resulting in higher (c) been directly or indirectly owner is a corporation).8 penalties. An aggravated offence is knowingly concerned or party to a contravention of a civil penalty one deemed to have resulted in or The Act will add “charterer” to the provision; or had the potential to cause serious master and owner as a person that harm to the marine environment. The (d) conspired with others to effect is deemed to have committed any maximum penalty for an aggravated a contravention of a civil penalty such offence. The term “charterer” is offence is 6000 penalty units, i.e. provision considered further below. $660,000. is deemed to have contravened the Whilst the master is the party liable civil penalty provision themselves, for the offence, an owner or charterer rendering them liable to the applicable or other accessory may also now penalty. be liable under the new accessorial liability provisions dealt with in detail The new accessorial liability below. provisions could leave an owner or charterer liable for contraventions by New offence under the Navigation the master where, in contravening Act relating to failure to report ship the new offences the master acts movements on the instructions of the owner/ charterer, and the owner/charterer Division 14 of Part IV of the has sufficient knowledge of the facts Navigation Act allows regulations that would make the master’s conduct to be made requiring reporting of a contravention of those provisions. ship’s movements in particular areas. The penalties that would apply to The Great Barrier Reef Particularly a corporation would be $330,000 Sensitive Sea Area is one such area. for non-aggravated contraventions Failure to report in accordance with (i.e. $66,000 x 5) and $3.3 million regulations is now a strict liability for aggravated contraventions (i.e. David Coogans, partner
Autumn 2012 I Shipping Australia Limited 127 There are some limited defences to charterer. The Act is silent as to (a) the word “charterer”, used on its the above offence, including where the whether this is intended to apply to all own in section 17 of the Admiralty Act oil or oily mixture “escaped from the or one specific type of charterer (e.g. 1988 (Cth) (Admiralty Act), has been ship in consequence of non-intentional demise charterers). construed by the court as meaning damage to the ship or its equipment, charterer of any kind;15 and all reasonable precautions Neither the amended PSPPSA, were taken after the occurrence of Explanatory Memorandum or (b) the word “charterer” is already the damage or the discovery of the MARPOL define “charterer”. None of present in a subsequent section of the discharge...” (emphasis added). the parliamentary debate discusses PSPPSA where a broad interpretation Whilst this may seem like a broad the concept of who are and are not would not be in any way inconsistent defence, it is significantly narrowed charterers for the purpose of extended with its purpose16 and if a different as the PSPPSA excludes damage liability under the PSPPSA. interpretation was intended it could have been addressed expressly in the caused by the mere negligence of The term “charterer” is already used amendment; and master or owner (even if carried out in the PSPPSA and equivalent State without intent) from being classified as Acts concerning the obligation to (c) notwithstanding that the offences “non-intentional damage”.9 Further, report the occurrence of pollution are strict liability offences, Parliament’s non-intentional damage to the ship incidents.13 However, with regard to intention is to maximise the deterrence or its equipment does not include the failure to report, in the case of the against pollution possibly by making “deterioration resulting from failure charterer a defence is available where all charterers, as parties interested to maintain the ship or equipment” they were not aware of the incident or, in the maritime adventure, liable for or “defects that develop during where a master has failed to report, prosecution regardless of their actual the normal operation of the ship or neither knew of nor suspected such equipment”.10 level of control over the ship from failure.14 There has been no judicial which a discharge occurs. Only NSW has followed the consideration of “charterer” in this Against this a charterer could argue Commonwealth in amending context. With regard to the discharge for a more limited reading of the word corresponding state legislation giving of oil or an oily mixture it would appear “charterer” on the basis that: effect to MARPOL such that the non- that a charterer is limited to the same intentional damage defence expressly defences available to the master and (a) with regard to the use of the excludes negligently caused damage owner, notwithstanding that they may word “charterer” in section 17 of the and wear and tear. However, in the have no involvement or control in Admiralty Act, that word is used in a other States and the Northern Territory relation to the ship’s operations. completely different context to that in “damage” does not include the the PSPPSA. ; and consequences of wear and tear.11 As a matter of statutory interpretation there does not appear to be any (b) it is arguably manifestly absurd The new Act also increases the compelling reason why a court should or unreasonable that a time, voyage maximum penalty to $2.2 million read the word “charterer” in sections or slot charterer should be criminally in respect of the master and $11 9 and 10 of the PSPPSA as meaning responsible for events over which it million in respect of the owner and something less than all forms of had absolutely no control, directly or charterer (assuming those entities charterers. The court is required to indirectly. This is to be contrasted with are corporations).12 The maximum apply the plain and ordinary meaning the position in relation to the failure to penalties under the equivalent of a word in a statute unless the result report offence where a time or voyage offences in State and Northern of applying the ordinary meaning Territory waters (as at 6 December charterer fails to report a pollution would be manifestly absurd or 2011) are set out in the table below. incident in circumstances where they unreasonable. In the circumstances, it are aware of the incident and knew is possible that a court would find that Liability of the charterer or suspected that the master had not applying “charterer” to mean all types reported it. As stated above, the Act extends of charterers is not manifestly absurd liability under the PSPPSA to the or unreasonable. With regard to this: It is not possible to provide a definitive view on how the courts will interpret the term charterer in the amended State/Territory Individual Penalty Corporate Penalty sections of the PSPPSA. However, it New South Wales $500,000 $10 million cannot be assumed that a court will restrict the term to a particular type of Northern Territory $527,450 or imprisonment of not $2,635,880 charterer (such as a demise charterer) more than 5 years who exercises some control over the Queensland $500,000 $10 million operation of the vessel. South Australia $200,000 $1 million For more information, please contact David Coogans, partner, on Tasmania $325,000 or imprisonment of not $1.3 million +61 (0)2 9320 4601 or more than 4 years [email protected] or Robert Victoria $244,280 or 2 years imprisonment $1,221,400 Springall, partner, on or both +61 (0)3 8601 4515 or robert. [email protected] or your usual Western Australia $50,000 $250,000 contact at HFW.
1Navigation Act 1912 (Cth) s267ZZI. 2Navigation Act 1912 (Cth) s267ZZJ. 3Navigation Act 1912 (Cth) s267ZZL. 4Navigation Act 1912 (Cth) s267ZZM. 5Navigation Act 1912 (Cth) s269E. 6Navigation Act 1912 (Cth) s399B. 7Navigation Act 1912 (Cth) s399B(5). 8Applying the penalty escalation provision for corporations in Crimes Act 1914 (Cth) s4B(3). 9Protection of the Sea (Prevention of Pollution from Ships) Act 1983 (Cth) s9(3)(b). 10Protection of the Sea (Prevention of Pollution from Ships) Act 1983 (Cth) ss9(3A)(a) and (b). 11Morrison v Peacock (2002) 210 CLR 274. 12Applying the penalty escalation provision for corporations in Crimes Act 1914 (Cth) s4B(3). 13Protection of the Sea (Prevention of Pollution from Ships) Act 1983 (Cth) s11(1B)(3). 14Protection of the Sea (Prevention of Pollution from Ships) Act 1983 (Cth) ss11(1B) (4)(a) and (b). 15Comandate Marine Corp v Ship Boomerang I (2006) 234 ALR 169. 16Protection of the Sea (Prevention of Pollution from Ships) Act 1983 (Cth) s11(3).
128 Shipping Australia Limited I Autumn 2012 s m a r t s h i p
Smartship Australia is a centre of excellence for pilot training, port development and maritime risk management and is supported by full mission high fidelity simulation. For more information go to www.smartshipaustralia.com.au.
Connecting Queensland Transport andand MainMain Roads www.smartshipaustralia.gov.auwww.tmr.qld.gov.au Autumn 2012 I Shipping Australia Limited 129
advertisement_em_1.indd 1 02/11/2011 3:54:26 PM maritime law
Flooding, drought, wildfires and their potential effect on carriers
By Jesper Martens, special counsel and Danella Wilmshurst, partner, HWL Ebsworth Lawyers
ot long ago, thousands of events are likely to lead to more crop Force majeure and frustration families lost their homes and failures. It is a fundamental principle of law crops as flood waters swept N that contracts are binding upon the across Central America. In Thailand, In Australia, severe flooding in 2010 and parties. However, in certain limited huge tracts of farmland were recently 2011 caused disruption to resource and circumstances a party may be excused submerged as the country faced its other commodity production and made from performing its obligations under worst flooding in 50 years. Across the it difficult or impossible for exporters to an agreed contract. Force majeure and globe agricultural production is at risk keep up supply. Regrettably, it appears frustration may excuse one or both as catastrophic flooding becomes that flooding is affecting crops again in parties from performance. a world-wide problem. Pakistan, 2012. Bangladesh, Vietnam, Australia, the UK Force majeure and frustration are These events are likely to have a and America have all fallen victim to different, but kindred concepts. catastrophic flooding in recent years. “knock-on” effect on carriers, as The main difference between the In 2010, drought and large-scale crop shippers of commodities may seek two is that force majeure is generally failures caused a wheat crisis in Russia to terminate, suspend or delay their included and defined in contracts. In and Ukraine, leading to embargoes. obligations under charter parties for the carriage of these commodities. other words, the events that constitute More extreme weather events are force majeure are normally specifically expected to occur in the coming years This article briefly sets out the issues defined and agreed in the contract. due to climate change – man-made or from the carriers’ perspective under If an event of force majeure occurs, not - and scientists concur that these Australian law. the parties are usually excused from
130 Shipping Australia Limited I Autumn 2012 performance, although there are many Ltd [2008] QCA 182, concerned the Termination by carriers/owners different types of force majeure clauses construction of a contract between the This article has primarily dealt with which operate in different ways. The appellant (CCS) and the respondent charterers’ right to terminate. The doctrine of frustration operates, as a (CPM) for the supply of coal by CCS for occurrence of a force majeure event, matter of common law, to cancel a use in CPM’s power station. CCS gave or frustration, may also cause carriers contract incapable of being performed notices of events of a force majeure. to consider termination of charter and operates in a contract as an implied The contract provided that once the parties, or to claim that their obligation term of the contract. period of force majeure ceased, the to perform is discharged. In the event The Australian approach to force party affected was to recommence of a significant delay caused by force majeure mirrors the English approach performance of all its obligations under majeure or constituting frustration, where force majeure clauses in the contract. The Court of Appeal found it may be desirable for the carrier to contracts are valid. that the force majeure clause limited terminate the charter party and re- the extent of obligations assumed Similarly, Australian law applies the charter its vessel to other charterers, for a defined period, but when the same approach to frustration. In (especially in a rising market), provided contract was construed as a whole, the words of Lord Radcliff in Davis this can be done without incurring the force majeure clause did not Contractors v Fareham UDC [1956] liability to the charterers for wrongful operate so as to “discount” obligations AC 696 at p 728, “frustration occurs termination of the charter party. This under the contract. If CCS could not whenever the law recognises that can however only be done in certain without default of either party, a subsequently supply the amount of coal circumstances, and it is a complex area contractual obligation has become not delivered by reason of the force of law. incapable of being performed majeure event, it would be in breach because the circumstances in which of the contract and liable to CPM for Certain charter parties provide performance is called for would render damages. clauses excusing both parties from it a thing radically different from that performance. The New York Produce which was undertaken by the contract.” Time for notifying reliance on force Exchange Form 1993 (NYPE 93) It is however a doctrine not to be lightly majeure or hardship clauses provides a short, general exclusion in invoked to relieve one party of its Clause 21 (Exceptions) which applies contractual obligations. Even in “charterer friendly” charter to owners and charterers alike. The parties, the charterers normally have Importantly, it is the party who wishes Gencon charter regulates the parties’ certain obligations to notify if they wish to rely on force majeure who must rights in the event of strikes, war or to rely on force majeure. If charterers prove that the events constituted force ice, but has no general force majeure are intending to rely on the “Hardship” majeure. Similarly, a party wishing to clause. An owner wishing to terminate clause mentioned above, they are invoke the doctrine of frustration must for other causes, such as flooding, must required to notify owners as soon as prove that the elements were present to prove frustration. frustrate the contact. This is traditionally they become aware that there has a difficult burden of proof to lift. been “a material change which makes When applying the doctrine of it unlikely that they will be able to meet frustration, many disputed cases Charter parties, force majeure and the tonnage or timing agreed in this of frustration turn on whether delay hardship Contract”. If charterers fail to provide or interruption of the voyage is details of the incident and an updated sufficiently grave as to frustrate the There are many industry specific loading schedule to owners, they may adventure. There is no general rule charter parties that are specifically be unable to rely on this clause. about this and all must depend upon drafted for carriage of commodities. the circumstances of the individual Some are “charterer friendly” and Failure to give notice can have dire case, and how long the interruption contain provisions which give wide consequences for a party seeking to is compared with the contemplated protection to the charterers against rely on the force majeure or hardship length of the voyage. Increased costs the consequences of circumstances clause. AGL Sales (Qld) Pty Limited of performance, even well in excess of which might impact on the supply of the v Dawson Sales Pty Ltd [2009] QCA those anticipated when the charter was cargo in question. By way of example, 262 provides an example of the the Clarkson Australia form contains concluded, will rarely, if ever, constitute consequences of failing to adhere to the relevant detailed clauses on Force frustration. However, the commercial the notice requirements. The dispute Majeure (cl. 40) and “Hardship” (cl. 61). purpose of the owner in entering into concerned the failure of Dawson to The “Hardship” clause provides that “If the charter is to provide remunerative supply agreed quantities of coal seam Charterers experience difficulties with employment for his ship. If the ship gas from the Moura Coal Mine to AGL any part of the production process, is kept waiting for an inordinate time due to geological conditions. The force including but not limited to the mine, outside a strike-bound port and without majeure clause in question provided slurry pipeline, Transfer Vessel, mill or earning demurrage, this purpose may Dawson with relief from the interruption concentrator facility, they reserve the be frustrated, and the owner would of the delivery of gas caused by right to delay or decrease the quantity generally be entitled to terminate. to be shipped under this Contract or “sudden and unpredicted events or Also, often courts will find that a to cancel the Contract without any combination of events”. The onus was voyage charter owner is adequately financial consideration to either party.” on Dawson to prove that the relevant compensated by demurrage clauses. As a whole, the terms of this charter facts and circumstances existed to party are weighted strongly in favour of invoke the force majeure clause, and If a carrier terminates the charter, and charterers. Other charter parties have that sufficient notice was provided. The it is determined that the charterers similar “charterer friendly” clauses. Court of Appeal upheld the primary could have loaded the cargo within A force majeure clause does not judge’s decision that the force majeure a sufficiently reasonable period of necessarily protect a party from its clause was not invoked and also found time, the carrier may be liable to the liability in respect of all its contractual that Dawson failed to issue a valid charterers for damages for breach of obligations. Callide Power Management notice without delay as required by the the carrier’s obligations to provide a Pty Ltd v Callide Coalfields (Sales) Pty contract. vessel.
Autumn 2012 I Shipping Australia Limited 131 young shipping australia Victoria Industry events and networking maintain the momentum
ince the establishment of the example, to learn more about break based on the feedback, it was a Victorian chapter of Young bulk shipping while one works for a one of the best events YSA VIC put SShipping Australia in 2009, container line. on. Hopefully we will be able to do YSA VIC have kept the momentum YSA VIC kicked off 2011 with a port another vessel tour in 2012. going through the planning and tour sponsored by Port of Melbourne implementation of various industry HWL Ebsworth sponsored the Corporation followed by a tour of events and social networking next information event, generously Station Pier. The members were sessions. providing their offices and food and given an up close and personal view drinks. Malcolm Collins, principal The aim of YSA VIC is to promote the of the Port of Melbourne in action regional port marine surveyor industry and provide an avenue for with commentary on statistics and up-and-coming generations to keep the port’s facilities, as well as food for maritime operations gave a up to date on industry innovations and beverage to enjoy. The event delightful yet informative speech and broaden the knowledge of was a huge success and even though on local legislation enforcing the individuals on an ever expanding and it was a chilly Melbourne day, gave requirements for the safe carriage of evolving industry. the attendees an opportunity to see dangerous goods, mandatory training how we all contribute to the success requirements and AMSA-accepted For 2011, the YSA VIC committee of the port and its supply chain. training and awareness training. consisted of 11 individuals from Shipping Australia member Holman Fenwick Willan sponsored The 2011 Christmas networking companies. The committee included: our next event generously providing function was held at the Blue Kate Wickett, PoMC; Andrew their offices and food and drinks. The Diamond and was well attended by Mackay, ANL Container Line; Bilal event focused on maritime law. members. The stunning views of the Khan, ANL Container Line; Bernard In the past we found this topic to be city from the Blue Diamond provided Lloyd, HWL Ebsworth; Hugo of interest which again was proven a wonderful atmosphere to cap off Marshall, HWL Ebsworth; Jesse van with the attendance. the third successful year of YSA VIC. der Tang, ANL Container Line; Reid Bettridge, Holman Fenwick Willan; Bernard Lloyd, HWL Ebsworth also The YSA VIC committee is looking Carolina Agudelo, APL Container gave an update on the ECO Terms forward to providing its members Line; Matt Treeby, Pacific Asia and explained the significance and with innovative, informative and Express Pty Ltd, Clare Schultz, WWL; importance they play. contemporary topics for discussion and, Dany Holl, PoMC. A highlight was a vessel tour though an exciting calendar of events In 2011 the aim was to provide arranged through WWL on one of in 2012 and would also like to take events that showed different facets their RORO vessels, after a few date this opportunity to say a big thank of shipping which in our day-to-day changes to fit in with the vessel’s you to all who contributed to our roles we may not come across, for schedule, the tour took place and cause.
Maritime Container Services Pty Limited commenced operations on October 1st 1973 and is recognised as Sydney’s oldest established container storage and repair company.
MaritiMe Container ServiCeS Pty LiMited 20 Canal Road, St. Peters Delivering Your NSW 2044 Australia Phone: 131 MCS expectations! 131 6 2 7 www.mcs-aus.com Fax:+61 (2) 8512 8930
132 Shipping Australia Limited I Autumn 2012 young shipping australia New South Wales
State seeks to improve public awareness of industry issues
During 2011 YSA NSW held six questions regarding general road and Syria, Libya and Cote d’Ivoire and events for its 60-plus members rail performance and landside issues the ever-controversial carbon tax and guests. The first event was were also addressed and Sydney and emissions trading scheme. Even the CEO outlook, which has now Ports CEO Grant Gilfillan attended though many aspects of the carbon become the keynote event. Over 80 the briefing, which was well received. tax were hard to swallow for some people attended the event at NSW of the audience, the fabulous lunch In August, Emmanuel Papagiannakis Parliament House to hear Maersk’s provide by Middletons wasn’t! The managing director Nicolaj Noes and as chairman represented YSA as event was extremely well attended, Hamburg Sud’s managing director an industry mentor at the inaugural with over 50 members and guests. Geoff Greenwood. The speakers Green Light Day held by the NSW In November a half-day intermodal outlined what attracted them to the Department of Transport. The event and container logistics tour was held industry and their progression in the saw over 230 students from 23 and hosted by Qube Logistics. The industry and offered excellent advice schools come together to promote first stop was the Yennora Intermodal on how to get ahead in the shipping the transport and logistics industry. Terminal, one of the largest freight industry. Speakers also discussed The level of interest was encouraging facilities in Australia. An overview was industry trends, in particular the and it highlighted the relatively provided highlighting the intermodal trend in global shipping growth and obscure profile the industry has, operations, rail, warehousing and increased focus on efficiency. Lastly, particularly in attracting school distribution activities. Following the James McIntyre, senior economist leavers as a career choice. On a container movements from Yennora with CBA, provided an economic positive note, the level of diversity to Port Botany, we too finished at the outlook, with a focus on sectors in the industry mentors, from freight POTA Port Botany Logistics Terminal. impacting shipping and trade growth. forwarding, Australian Defence Force, ports and shipping lines, also We had a bus tour through the site In response to the increased focus on highlighted the wide range in career highlighting the intermodal siding, landside performance, YSA organised opportunities in the sector. AQIS services and container freight a briefing on the Port Botany services. Given the operational nature Logistics Improvement Strategy During September, we held a of the visit, we restricted the event (PBLIS) hosted by Sydney Ports in maritime presentation hosted to a busload of 25. After nine days of April. An overview and update of by Middletons. The major topics marketing the event, we received over the strategy was presented, along included coverage of reforms to 60 RSVPs and had to close RSVPs with Sydney’s plans for road, rail the Australian Maritime Regulatory early. This clearly highlights there is and port infrastructure. Participants’ Regime, UN trade sanctions to Iran, a genuine interest in gaining a more hands-on experience of facilities in the chain and we will continue to provide such tours. In addition to a social networking event, the Annual Dinner was held in December at a Lebanese restaurant. Guests mingled before enjoying a traditional Lebanese banquet and wine donated by Hamburg Sud, MSC, Seaway, OOCL and Patrick. After some heavy eating, a number of guests were seconded by the belly dancers and gave us all some entertainment to remember.
Economic YSA was fully funded by memberships and sponsorship
Autumn 2012 I Shipping Australia Limited 133 Group photograph of the logistics tour party
from presenters. Whilst SAL is not 3PL and 4PL opportunities continuing with shipping lines’ HR departments in a position to provide any direct to flourish. to deliver mutually beneficial events. funding, accounting and other Lastly, we thank all YSA members Going forward 2012 services are provided in support of and guests who have attended YSA. Going forward, YSA will seek YSA has focussed on planning high events, the committee for their greater sponsorship of events. The quality events well in advance, with hard work, importantly, those in the membership fee has remained $50 a full calendar already established. maritime community that by allowing per member since inception, with Apart from the annual CEO outlook staff to attend events, develop their a special corporate membership of event, a further six events have been staff, grow YSA and we hope, grow $300. scheduled including presentations on their companies’ profitability. maritime law, importer supply chain, Media chain of responsibility/weighbridges Committee of 2011 YSA was well represented in the and a container terminal/vessel visit. • Emmanuel Papagiannakis, media with coverage of our major In addition, members will also receive chairperson, Patrick Container events. In addition an opinion article a copy of each SAL magazine. Ports “New generation sees the positives YSA will seek to improve the • Hussein Chahine, vice of change in the shipping industry” awareness of industry issues chairperson, Seaway Agencies was published in the LLDCN. YSA as they affect younger maritime will continue to expand its media, professionals, through media • Alex Faliotti, treasurer, Hamburg website and external relations with and through the SAL HR Steering Sud related parties. Committee, hence would • nathan Cecil, secretary, Norton encourage members for their input. White Lawyers Strategic direction A pressing requirement remains • John Thomson, information There continues to be immense the establishment of educational resources for maritime professionals officer, Mediterranean Shipping interest from freight forwarders to Company (Aust) and we will work with SAL on this join YSA. Going forward, this will issue. be an interesting development, as • Katherine Fleming, membership coordinator, OOCL many shipping functions become YSA will also work on providing commoditised or move offshore such greater member statistics and • Paul Alexander, policy advisor, as operations/vessel planning, with develop a closer working relationship Shipping Australia Limited
134 Shipping Australia Limited I Autumn 2012 education and training Maritime Safety Queensland
SmartShip Australia simulator
martShip Australia - the new the simulators is the same used new benchmark in achieving that marine simulator and training onboard actual ships, to ensure outcome. SmartShip provides Scentre in Brisbane - is the experience is as realistic as a capability for pilots to access making good headway in providing possible for pilots. training to the highest international pilot training and assisting port The simulators enable simulations standards. development projects. to be conducted for: SmartShip Australia has many The world-class facility has been • Ship manoeuvrability courses and services on offer, open for business since May including: 2011. To date there has been very • Ports and fairways • Advanced Marine Pilot Training positive feedback from pilots who • Environmental factors such as have undertaken training at the new wind, current, tide, rain, fog, • Advanced Bridge Resource facility. day/night conditions management SmartShip Australia provides Although pilot training is a priority • maritime / Bridge Resource marine pilots with a high fidelity for SmartShip, the simulators are management simulation capability and also being used to assist in port unparalleled realism using the most and fairway design studies. Given • Basic and Advanced sophisticated simulator equipment the unprecedented number of port Shiphandling for Pilots in Australia. The facility includes developments currently underway • Pilot Assessment five simulators, numerous training in Australia, this capability will be rooms, a client’s lounge, dining crucial in ensuring optimal port • Competency Audit room, showers and change rooms design and reducing risk factors. for participants. • tug Handling There are about 350 marine pilots All five bridges can be integrated in Australia, with over half of those • Combined Tug Master/Pilot for a single exercise or operated operating as port or coastal pilots training individually as required. All the in Queensland. SmartShip is ideally Training of marine pilots is crucial training rooms at the centre are fully located near Brisbane Airport and to ensure marine safety and equipped with play back functions its commissioning is timely. The SmartShip Australia has no peer in and multi screen adaptors for all number of pilots in Australia is achieving this objective. training needs. expected to increase significantly in the next 10 years with multiple The simulators are realistically SmartShip provides a modernised port expansion projects coming on replicating the bridges of some of research and learning faculty to stream servicing increased export the world’s biggest international support the maritime industry in markets. cargo and cruise vessels to assist Australia and remain ahead of the marine pilots to hone their skills. Pilotage is all about mitigating many challenges facing the industry The equipment used in each of risk and SmartShip will set a over the next decade.
Autumn 2012 I Shipping Australia Limited 135 education and training Australian Maritime College
There’s a certain buzz at the Australian Maritime College (AMC) heading into the new academic year.
AMC is looking forward to playing training pathways. distance education through online its part in driving the recently and part-time study options is A Heads of Agreement has also announced maritime reform agenda. also expanding. With AMC alumni been signed with the Australian As Australia’s institute for maritime spreading across almost 60 Maritime and Fisheries Academy education, training and research, countries, the college is increasingly (AMFA) who have campuses in the college is positioning itself to be tailoring courses to suit the needs Adelaide and Port Lincoln, enabling ready for the growth and benefits of people with busy lifestyles. They an expansion of international and associated with the reforms, in could be on a boat or onshore - coastal seafaring study opportunities particular, the shipping reform anywhere in the world. in South Australia. In addition, a elements. collaboration with Flinders University In addition to making courses as The maritime industry is confronting has been formed whereby students accessible as possible, AMC is also a dual challenge - an ageing enrolled in maritime electronics expanding its range of courses and workforce and an increase training programmes to meet in shipping volumes. This the demands of industry. will require more seafarers, AMC is now offering a safety professionals, harbour Master of Maritime Engineering masters, pilots and other skilled degree to help address the workers to ensure Australia’s global demand for maritime maritime safety and environmental engineers. By offering part-time standards are maintained. and distance options, the degree is “Securing a long-term skills base designed for working professionals is essential to a viable Australian and is ideally suited to engineering or naval architecture will divide shipping industry. At AMC, we are professionals already in the workforce their time between Adelaide and preparing for an increase in demand with limited exposure to the maritime Launceston. A similar collaboration for training. Working closely with engineering sector. for maritime engineering degrees has industry, we will need to maximise the been established with Edith Cowan A new postgraduate degree in efficiency and delivery of our training University in Perth, WA. hydrographic surveying is also programmes to ensure we have both being planned for next year. It’s the human and physical resources In addition, integrated ratings training the only civilian training program in needed to cope with this increased is now being conducted interstate for hydrography in Australia. Certificate throughput,” director of the National the first time. Delivered in Melbourne, (Coastal Hydrography) and Diploma Centre for Ports and Shipping, the largest single cohort of integrated (Hydrography) courses are proposed Captain John Lloyd said. ratings students is enrolled in this using a flexible, distance delivery year’s first intake. To meet the expected growth in mode which will enable participation demand, AMC has been continuing “These developments in South by a wide ranging audience and to develop strategic partnerships Australia, Western Australia and allows for studying whilst working. interstate. In October, a three year Victoria represent a strategic The courses are able to be completed Memorandum of Understanding opportunity for AMC to grow and in one year or over two to three years was signed with a leading South provide much needed capacity to the and conclude with a field week. Australian school, Le Fevre High maritime industry,” acting principal Another ‘first’ for Australia is AMC’s School, to further develop the state’s Professor Neil Bose said. Bachelor of International Logistics maritime high school curriculum to AMC’s capacity to provide quality (Freight Forwarding) degree, enhance maritime educational and
136 Shipping Australia Limited I Autumn 2012 which is accepting its first student work as a navigation or engineering and regulators, are currently being cohort this year. This expanded officer on-board a ship. It will lead to finalised. business and logistics programme possible careers in; ship operations, Existing AMC courses are receiving was developed in partnership ports and terminal, and personnel even greater industry recognition: with the Australian Federation of management; vessel traffic service; for example, IMarEst accreditation International Forwarders (AFIF). The operations and business-related is now in place for all marine degree, offered over three years, activities in the maritime-related environment, maritime engineering full-time or part-time equivalent, will sector,“ Captain Lloyd said. and Bachelor of Applied Science focus on relevant fields including The program changes are a result (Marine Engineering) degrees. freight forwarding, customs of a dedicated course review Maritime Engineering degrees are broking, cargo regulatory systems, process which occurred in 2011. It is also accredited with Engineers logistics management and global expected the new course structure Australia and the Royal Institute of procurement. will take effect in 2013, with the Naval Architects. “Global trade is a central part of first students likely to receive their Additionally, AMSA’s annual audit Australia’s economy and demand Bachelor awards in 2017. of AMC seafarer programmes has for qualified staff in this critical area The courses, developed with recognised developments which of international logistics is sure to considerable industry consultation have taken place in areas such as exceed supply,” head of Maritime and and input from maritime employers lifesaving appliances, global maritime Logistics Management, Dr Stephen Cahoon, said. Meanwhile the Co-operative Engineering Programme, rolled out last year, continues to provide companies with first access to talented undergraduate students as they carry out work experience under the guidance of a qualified maritime engineer (extending their three year degree by one year). One of the most exciting developments within the National Centre for Ports and Shipping is the migration of courses linked to the professional Certificates of Competency from Advanced Diploma to Bachelor of Applied Science status. “This will give greater recognition for the academic learning that takes place. It will attract a parallel stream of students interested in maritime careers, but not necessarily leading to
Autumn 2012 I Shipping Australia Limited 137 Dynamic Positioning courses at its DP units in Launceston (Tasmania) and Perth (WA) and has received two prestigious awards, including ’DP Training Centre of the Year’ in the 2011 International Dynamic Positioning Excellence Awards. Australia’s National Hydrodynamic Research Centre has been utilised by Hobart-based shipbuilder Incat and Revolution Design, propulsion company Wartsila Netherlands and the Netherlands-based MARIN to develop propulsion for the next generation of Incat vessels. distress and safety simulation specific needs, provides a level of In addition to this partnership, one of (GMDSS) and the enhancement to quality and flexibility of service yet to the international leaders in the ocean our engineering laboratories. be rivalled. energy sector, Oceanlinx has been Companies from around the globe Clients have included Newcastle Port using these world-class facilities to and government agencies utilise Corporation, Woodside Energy, Port further develop renewable energy AMC’s suite of world-class facilities of Melbourne Corporation, Rio Tinto, technology that provides versatility for testing and research, and this Flinders Ports, Sydney Ports, Port for deployment in shallow and deep means that students and staff are Kembla, Maritime Safety Queensland, waters. The project will develop new involved in research that has real- TasPorts, Port of Napier (NZ) and ocean wave energy technologies world application. South Port (NZ). for electricity generation and desalination. AMC’s flagship, the 35-metre Bluefin, AMC’s model test basin also is capable of cruising all Australian remains in high demand - ideally Both industry focussed research waters with voyages tailored to suited for conducting hydrodynamic projects are funded through the the needs of study areas. It is also experiments with an emphasis on Australian Research Council (ARC) commercially chartered by maritime Linkage Project scheme. companies for diverse work such AMC is also very excited to have as rescuing stranded Antarctic recently secured its first ever scientists from Macquarie US Navy’s Office of Naval Island, minesweeping trials Research (ONR) grant. ONR for the Royal Australian is the world’s largest funder Navy and survey work for of naval related research. undersea cables in Bass The grant complements the Strait. collaborative work already Since its multi-million undertaken with the defence dollar upgrade, the industries. Centre for Maritime But it’s not just about AMC’s Simulations has been facilities, programs and grants; in constant industry it’s about the people. AMC demand used to meet a lecturers, researchers and facility range of clients’ needs such staff bring a concentrated wealth as: the evaluation of new of world-wide knowledge and and extended port designs; expertise to all the projects they are extending port operational maritime operations within shallow involved in. One of many examples is parameters; handling of new, larger water environments such as ports, aquaculture lecturer Ryan Wilkinson, ships; standard operating/emergency harbours, rivers and coastal regions. who was recognised at the national procedures; simulation studies; and The model test basin has played an Trailblazer awards, which explore pilot training. integral part in the ongoing planning the commercial potential of new Among the ports and harbour designs and development process for the concepts, by giving researchers and development projects, the suite Newcastle Port Corporation, with the opportunity to pitch their ideas of simulators were utilised to trial a recent study investigating the to a panel of judges with interests and test two of the world’s biggest motions, mooring line and fender in venture capital, intellectual and most opulent cruise ships ahead loads experienced by ships at property management and industry of their arrival into Sydney Harbour. existing and proposed berths. engagement. Utilising AMC’s ship bridge and tug The joint partnership with the AMC is proud of its ability to provide simulators, pilots were able to assess Newcastle Port Corporation is one maritime education, training and and manage the risks involved prior of many conducted through AMC’s research relevant to industry needs. to the docking of the Queen Mary II commercial arm, AMC Search, Under the guidance of acting and Queen Elizabeth. which raises funds that go directly principal, Professor Neil Bose, AMC AMC’s capability to model port areas back to the college to reinvest will continue to build on its strengths and ships ‘in-house’, through working in its facilities. AMC Search also and seize all available opportunities directly with clients and meeting their offers Nautical Institute-approved to enhance the maritime sector.
138 Shipping Australia Limited I Autumn 2012 Fremantle Ports Facilitating trade in a sustainable way for Western Australia’s economic growth
• Strongly committed to • Upgrading port infrastructure understanding and being responsive to customer needs • Working with industry and relevant The Australian Business Government agencies to improve Excellence Awards and • Ensuring commercially sound landside logistics associated assessment criteria are recognised outcomes internationally as a • Maintaining high standards of safety framework for best management practice. • Planning to ensure new land use at and environmental management Fremantle Ports is Rous Head enhances operational a Gold Level Award • Supporting local communities winner. efficiency
For information about doing business with Fremantle Ports, contact: Glenn Stephens, Senior Manager Trade and Business Development, on 08 9430 3377 or email [email protected]
75843 acorndesign.com.au Autumn 2012 I Shipping Australia Limited 139 Transport and logistics
2011 was an exciting year for the NSW Transport and Logistics Workforce Advisory Group (TLWAG) and the newly created Transport for NSW. Deputy director general, policy and regulation, Tim Reardon provides an insight into the role of the new integrated transport authority and the important work of the NSW TLWAG.
Transport for NSW • Freight and Regional economic, social, safety and Development – which will make commercial policy. The division has a Transport for NSW was officially sure freight services and focus on safety policy across roads, formed on 1 November 2011 as a facilities meet the needs of the boating, and passenger services and new integrated transport authority. State economy, with particular on the implementation of national The establishment of the authority focus on regional NSW regulation for rail, heavy vehicles and maritime. We will also provide means, for the first time, planning • Policy and Regulation – which coherent and efficient approaches to and policy across all modes of will develop and oversight policy and legislative frameworks for transport, including roads, are fully policies and laws pertaining to areas such as passenger services, integrated and sees policy and transport across the State planning experts from all transport fares, concessions, accessibility, licensing and registration, and agencies working together. Policy and Regulation Division pricing and funding. The Transport for NSW divisions are: The Policy and Regulation Division • Customer Experience – which will at Transport for NSW drives strategic NSW Transport and Logistics make sure journeys are as simple policy for the transport portfolio. It Workforce Advisory Group (NSW and seamless as possible ensures that regulatory frameworks TLWAG) support NSW Government transport With members from key government • Planning and Programs – objectives and that national reforms agencies, industry groups (including which will consolidate planning benefit NSW. The division focuses Shipping Australia) and union for all modes and develop a on the key policy objectives of representatives, the NSW TLWAG comprehensive transport customer service, efficiency and provides a mechanism and focus masterplan effectiveness, safety and social for facilitating collaboration and access. • transport Services – which will partnership between its members ensure transport services cost The division is Transport for NSW’s and the broader T&L Industry. effectively meet the current and interface with industry stakeholders Meeting quarterly, the TLWAG future needs of customers on policy matters and reform addresses workforce issues in the processes. transport and logistics sector and • transport Projects – which will focuses on five key themes: ensure major projects are The Policy and Regulation Division delivered on time and on budget has a broad remit covering • Collaboration and coordination
140 Shipping Australia Limited I Autumn 2012 Bluescope Steel. This program will continue to be a focus for the NSW TLWAG with the possibility of expansion over the next 12 months. The ITLSPP provides students with the opportunity to develop the practical skills and knowledge required to work in the local transport and logistics industry by undertaking Certificate II qualifications and a work placement.
• nSW is a member of the Logistics Information and Navigation Centre (LINC) community following the website’s relaunch in June 2011. Green Light Day launch event compere David Whitehall The LINC portal provides the opportunity to showcase NSW • Skills supply and labour market Additionally, students had the TLWAG’s transport and logistics opportunity to win a ‘money can’t buy’ skills and workforce initiatives as • Education, training and transport and logistics experience, qualifications providing an awareness of the breadth well as a platform to collaborate and share experiences with similar • Careers of the industry and potential career opportunities available. Thank you groups in other jurisdictions. • Safety and security to Shipping Australia, Svitzer and Further information is available at PB Towage for their support of this In addition to developing effective www.the-linc.com.au. initiative. solutions and programs to address • In conjunction with the Transport Feedback from stakeholders after workforce issues, the TLWAG is and Logistics Centre (TALC), also a means to network and share the inaugural Green Light Day has the NSW TLWAG rolled out strategies, programs, ideas and been overwhelmingly positive. Financial and in-kind supporters, the Transport and Logistics resources with TLWAGs across the participating schools, associated Workforce Gauge in early 2011. country. government departments and TLWAG The gauge is a survey developed members agree that the 2011 event by the Queensland TLWAG who 2011 Green Light Day was an important first step in raising have made it available for use The major focus in 2011 for the NSW awareness of the transport and logistics industry. by TLWAGs in other states and TLWAG was the Green Light Day. The territories. The main objective in event was held on Friday, 26 August Transport for NSW and the NSW the provision of the T&L Workforce and saw over 230 students from 23 TLWAG are looking forward to Gauge is to establish a highly schools participating in four events expanding the event in 2012 with relevant, low cost and flexible across Sydney. more students, schools, stakeholders and open days. Interested in taking workforce survey program with a The launch event held at NSW Trade part in this year’s event? Keep an high level of industry participation. and Investment at the MLC Centre eye on our dedicated website www. Participation in the survey will saw attendance by enthusiastic greenlightday.com.au for updates or enable the industry to collect email [email protected]. students, teachers, government reliable data about the current and au to register your interest. and industry representatives from potential workforce issues in the 25 state, national and international transport and logistics industry in organisations coming together to 2011 TLWAG highlights NSW. Encouragingly, there was celebrate the importance of the Along with the success of Green Light a significant response from the transport and logistics industry. Day, 2011 was a successful year for the NSW TLWAG with a number of shipping sector. Concurrent with these events, open projects completed including; In 2012, the NSW TLWAG will focus days were held at Axima Logistics in Smithfield, RAAF Base at Richmond • the Illawarra Transport and predominantly on the growth and Logistics Skills Pilot Program and Qantas Centre of Service next phase of Green Light Day. (ITLSPP), under the direction Excellence at Alexandria with support Any organisation that is interested of the Transport and Logistics in getting involved in this exciting of local MPs, TAFE and the Australian Industry Skills Council, is initiative or who have any questions Trucking Association where students progressing well with a total of learnt firsthand the variety and scope eight students having commenced about the NSW TLWAG or Transport of careers available in the transport school-based traineeships in the for NSW should contact NSWtlwag@ and logistics industry. Illawarra with three of these at transport.nsw.gov.au.
Autumn 2012 I Shipping Australia Limited 141 navigation
What price safety?
By Dr Terry O’Brien, executive director, OMC International
channels and allow them, in most cases, to Torres Strait system operational go deeper than allowed by static rules and It’s not all about big profits for the big therefore safely load more cargo. players. After all, Australian Maritime Safety So what is the introduction of OMC’s Authority (AMSA) installed our technology in technology worth? Just ask PHPA. Their Torres Strait to enhance the safety of deep website http://www.phpa.wa.gov.au/ draught vessels transiting these shallow dukc_information.asp says that our system and environmentally sensitive waters. “generates in excess of $25 million dollars These ships face many challenges to safe per annum in revenue to the state”. PHPA navigation due to the numerous reefs, also says: “It is initiative of this type that shallow waters, complex tides and strong keeps PHPA to the forefront of bulk- tidal streams. This is the first time that this handling ports.” It has been estimated that system is being used in a complex and the new system accounts for an average remote coastal environment in Australia. of 7 per cent of the tonnage shipped out of AMSA is the first client to use our new web- Port Hedland and the revenue generated based next generation product suite, DUKC will continue to increase as PHPA’s Series 5, which allows accessibility via the throughput of iron ore continues to grow internet. This advanced functionality gives strongly during the coming years. authorised users worldwide easier access io Tinto, BHP Billiton, Fortescue to the system. They can now execute UKC- Metals Group. For those who read Other big news out west is that Cape related tasks via the web as well as the Rbusiness stories online or in national Lambert is now fully commissioned as a traditional desktop-based user interface. and international newspapers, it’s obvious licensed DUKC port. This development is The new modular framework also enables these big mining companies are still significant because it is Rio Tinto’s main users to access only the self-contained enjoying big profits in Western Australia. growth port. In Rio Tinto’s media release modules relevant to their specific needs, (8/02/2012) chief executive Sam Walsh whether it be long-term voyage planning, If you’re time poor, just log onto Port announced a commitment of US$1.2 billion real-time onboard pilotage applications, or Hedland Port Authority’s (PHPA) website towards the extension of port and rail shore-based monitoring of multiple vessels and read its 2011 media releases about operations at Cape Lambert so as to take by VTS in real-time. tonnage records continuing to tumble for the capacity of its integrated Pilbara port Port Hedland which is the world’s largest operations from the present 225 Mtpa to In its media release issued on 16 December bulk export port. On 15 November 2011, 353 Mtpa before July 2015. Our technology 2011, AMSA declared this system was now the Fortescue Metals Group (FMG) loaded operational and will allow “vessel operators will assist this rapid expansion by providing vessel, the Wugang Innovation, broke the and coastal pilots to plan the safe and increased cargo uplifts on most sailings record for the largest iron ore shipment to efficient passage of deep draught vessels”. at Dampier and Cape Lambert, together leave Port Hedland. Loaded with 247,906 with increased consistency in shipping tonnes of iron ore, it broke – by 48 tonnes - Following AMSA’s lead, we believe operations across both ports and improved the previous record set five months earlier a growing number of Australian and when the Cape Infinity, a BHP Billiton management of grounding risks. international ports and waterways will install, or upgrade to, our latest web-based loaded ship, left Port Hedland carrying A recent ministerial media statement Series 5 technology to allow easier access 247,858 tonnes of iron ore. (2/02/2012) announced that to improve to our technology, thereby enhancing its What you often won’t read is the real story efficiency WA ports will be consolidated use as an essential risk mitigation tool for behind the story – that these ships sailed under the control of four regional port UKC management. under OMC International’s DUKC (Dynamic authorities commencing in 2014. Port Under Keel Clearance) advice. Our proven Hedland, Dampier, Cape Lambert and other Fremantle Port technology is so accurate that, under proposed new ports in the Pilbara will be extreme weather conditions, a 250,000 under the control of one such authority. Just last year, OMC helped Western Australia’s Fremantle Port Authority with tonne ore carrier can negotiate a channel I see the interests of OMC and the Pilbara within a metre’s clearance to the seabed. the inner harbour channel deepening ports as increasingly aligned in maximising project and reconfigured our software Just one centimetre of extra under keel the operational cargo uplifts associated navigation system to allow the port to take clearance means 170 tonnes of extra with the mammoth growth of these ports. full advantage of the dredging. According cargo on a ship the size of the Wugang OMC is investing considerable funding to Fremantle Port Authority’s 2011 annual Innovation or, if you get it wrong, a touch- and endeavour in the development and report, “The deepening to 14.7 metres has bottom incident! Our customised DUKC refinement of new products such as DUKC increased the maximum draft capability systems mathematically predict how much Optimiser to more fully meet the evolving for container shipping from the previous UKC ships require as they transit shallow needs of these mega ports. 12.7 metres to 14 metres, using Dynamic
142 Shipping Australia Limited I Autumn 2012 Underkeel Clearance draft-enhancing technology. The ability to service the larger, more efficient ships fully loaded means the same volumes of cargo can be carried on fewer ship visits, with benefits in terms of economies of scale, fuel savings and reduced greenhouse gas emissions.”
Progress in South America OMC is now starting to make headway in South America following meetings with various port authorities, regulatory bodies and pilotage providers in the region. This past year, our senior engineer and South American manager Dr Matthew Turner and myself have focussed on demonstrating Terry O’Brien and his wife Pauline, Marco Gamaro from Samarco Mineração S.A, the value of our technology for selected Dr Matthew Turner of OMC inspect Samarco’s iron ore facility at Port of Ponta Ubu, ports in Brazil and Argentina. in Espirito Santo, Brazil Given the many international headlines late 1997 following the near-catastrophic which, in effect, are international industry about the Very Large Ore Carriers (VLOC), breakout of the World Kudos during a standards for the safe and economic also known as Valemax vessels, which are severe swell event earlier that year. Recent design and operation of port structures and capable of transporting 400,000 metric developments in our swell forecasting facilities, such as shipping channels. tonnes of iron ore (with draught increase models used in many of our DUKC systems rates in excess of 200 tonnes/cm), there are are now available for use in our berth The first working group (WG 49) is tasked obvious growth opportunities for DUKC in warning systems and will considerably with updating the well-known PIANC the Brazilian ports from which these giant enhance the operational value of these guidelines on channel design (WG 30 ships will load in coming years. systems. report), taking account of the increase in ship size since publication of that report in North American ‘Graveyard of the A recent example where such forecasting 1997. Pacific’ contract in a berth warning system may have prevented a marine catastrophe is the The second working group, which I have Last year, OMC announced the winning recent loss of the MV Tycoon at Christmas had the privilege of chairing during its of our first North American contract, a Island in January 2012, apparently caused work over the past four years, is a new DUKC desktop study, for the Columbia by a rapid growth in wind and ocean swell area of interest for PIANC. It relates to River Bar, a treacherous waterway known causing excessive vessel motions leading the very important topic of measurement, as ‘the Graveyard of the Pacific’. This to breakage of ships lines, ending with the forecasting and application of hydro/meteo study was commissioned by the Columbia loss of the ship on the cliff face. data for UKC management tools such as River Bar Pilots with funding from the DUKC as well as for the safe operation Oregon Department of Transportation. This Product development of moored vessels and other port marine aptly nicknamed Bar, at the mouth of the activities such as the berthing/unberthing Columbia River which flows into the Pacific A significant proportion of OMC’s earnings of vessels. Ocean, has claimed about 2000 ships and are invested each year in research and 700 lives since 1792. development of DUKC-related products. Both working groups have involved international experts in various related fields Our maritime engineers are continuing to OMC’s staff of more than 30 highly trained working together for several years, meeting collect extensive data and measurements engineers, naval architects and software at least twice a year, usually in Europe. It in Columbia River Bar during the North engineering/IT personnel are continuing to is expected that final reports from both American winter as it is so important for work on bringing new products to market working groups will be published by PIANC the maritime industry to get such data in to improve the safety and efficiency of by the end of this year. these particularly challenging conditions. the Australian and international shipping We believe this valuable information is not industry. This includes a ship scheduling Push for standard safety implementation available elsewhere in the world. tool, DUKC Optimiser, which can schedule multiple ships on one tide, finding the We are grateful that the shipping industry Mooring analysis, design and operation solution that maximises total tonnage for acknowledges the extensively validated the tide while observing constraints such as scientific evidence and safety track record OMC continues to be heavily involved in the vessel priority protocols and tug availability. of our proven, real-time UKC management analysis, design and operation of mooring systems and supports our quest for them systems where moored ships are exposed This optimiser tool will allow ports to reduce to become standard safety requirements for to swell or long wave effects, associated the workload for their schedulers, and also UKC management around the world. with the hydrodynamic forces caused by increase their port capacity in the most passing ships or ocean swell. Many of the cost-effective manner. The growth of our WA iron ore ports and new port developments along the West our east coast coal ports will put increasing Australian coast, such as the outer harbour International industry standards pressure on the shipping regulators to use at Port Hedland and the proposed new tides more efficiently and reduce dredging berths at Cape Lambert B, have involved A major personal effort in 2011 has been costs as cargo volumes ramp up. use of our technology as an essential with providing technical input to PIANC component of the jetty design process. working groups dealing with development Our systems have been safely operating of international guidelines and standards in ports for nearly 20 years. In the world of In addition, our berth warning systems for channel design (WG 49) and the use shipping, the bottom line should always be at the Kurnell offshore mooring facility at of hydro/meteo data for port operations, safety before profits – whatever the price. Botany Bay and at the port of Hay Point especially real-time determination of tidal After all, grounded ships blocking access continue to provide real-time operational windows for shipping channels (WG 54). channels will cost big time! warnings on forecast wind and wave conditions which may cause vessels to PIANC is widely regarded as the premier * In June 2010, in the Queen’s Birthday break lines at the berth or damage fenders, world authority on the design and operation Honours List, OMC founder and executive causing unacceptable OH&S risks to of port structures and facilities. The reports director Dr Terry O’Brien, who is a personnel and damage to wharf structures of its various working groups on technical, Melbourne engineer and former academic, and the vessel itself. These systems have economic and environmental aspects was awarded a Medal of the Order of been in operation since the late 1990s, the related to navigation in maritime and inland Australia (OAM) for services to the maritime Kurnell system having been installed in waterways form a body of knowledge transport industry.
Autumn 2012 I Shipping Australia Limited 143 ADVERTISERS’ LIST
AMSA Inside back cover Newcastle Stevedores 23 Australian Hydrographic Service 19 NYK Line 5 Brisbane Marine Pilots 11 Pacific Materials Handling 13 Department of Agriculture, 35 Port of Brisbane 99 Fisheries and Forestry-Biosecurity Port of Darwin 101 DP World Gatefold Rightship Outside back cover Flinders Ports 83 Smartship Australia 129 Fosters 25 Sydney Ports 113 Fremantle Ports 139 TasPorts 39 Inchcape Shipping Services 69 TT Club Inside front cover & 93 Maritime Container Services 132 Treasury Wine Estates 24 Newcastle Port Corporation 66 Victorian Regional Channels Authority 63
144 Shipping Australia Limited I Autumn 2012