Print Post Approved PP255003/07533 SPRING 2010 AUSTRALIA

Tradegate News compared Port costs mining boom Adelaide facesa Tremaine Profile: Vince seafarers? cares about Viewpoint: Who Committed to Quality from Ships to Shores

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www.dpworld.com Spring 2010

AUSTRALIA Contents

2 Announcements from the bridge Whatever happened to infrastructure?

4 Viewpoint Year of The Seafarer

6 profile Vincent Tremaine, of Flinders Ports

10 south Australia’s changing faces • Mining bonanza ahead • Techport’s common-user facility • FreightLink’s new era • The hard times of Hagen Stehr • Tuna industry booms again • GM Holden looks forward • Call for harmonisation

22 port costs compared Home and international; rates survey

28 navigation New $6m pilot simulator

30 tradegate News Do we need another review?

36 the economy • Agribusiness’ best year • SMEs backbone of exports

42 legal Limiting owners’ liability

46 the Scene Brisbane dinner; Queensland golf day

48 young Shipping Australia Five points for getting ahead

50 signal SAL supports fiscal reforms.

The official Journal of Shipping Australia Ltd Level 6, 131 York Street, Sydney NSW 2000 PO Box Q388 Sydney NSW 1230 1. Adelaide old and new  (02) 9266 9911 4 (02) 9268 0230 www.shippingaustralia.com.au AUSTRALIA Town Hall and The Tram Published for Shipping Australia ltd by 2. Vince Tremaine, Flinders Ports Commercial Suite 5, 3. Brian Smedley, SA Wine Industry 99 Jones St (Dalgety Square) Ultimo NSW 2007 Association (02) 9211 7422 (02) 9211 9061 www.showcasepublications.com.au  4 2 3 1 4. Andrew Fletcher, DefenceSA editorial Executive editor - Llew Russell Feature writer - Archie Bayvel 5 4 5. Brian Jeffriess, Tuna Industry Administration Sarah Abrahams  [email protected] Association Advertising Co-ordinator For Advertising in the next issue Call Steve Moxey  (02) 9211 7422  [email protected] GRAPHIC DESIGNER Anne Mackintosh  [email protected] Announcements from the bridge By Llew Russel Whatever happened to infrastructure?

e congratulate It was disappointing during the election receive a fair trial in the light of the campaign that both leaders omitted to media attack on Captain Santos and on the new minority mention the importance of upgrading the shipping company at the time of the Labor infrastructure in Australia, particularly accident and subsequently. W for transport, and developing the ways government on its Whilst it was a serious accident and a and means of making our existing most regrettable occurrence, the use election. Whilst there infrastructure more efficient and of words in the media like ‘dumping’ of productive. SAL strongly supports the will undoubtedly be a oil rather than ‘spilling’, ‘disregard for retention of Infrastructure Australia the potential pollution affects’ and so much greater degree of as well as the National Transport on cloud the fact that Captain Santos, uncertainty and Commission working together to with his seamanship and expertise, was promote the national freight network instability as a result of able to bring both the vessel and crew in Australia as well as the proposed safely to port in very extreme weather any minority national port development strategy. conditions. Criminalisation of seafarers government, I fully Since the last edition of our magazine, is becoming a worldwide phenomenon endorse the views of there have been a number of and it is hoped that Australia, which the Australian Chamber developments which apart from the prides itself on a fair and equitable political scene, have continued to justice system, will not join the growing of Commerce and challenge the maritime industry in list of countries that have basically Industry stated shortly Australia. gaoled seafarers first and asked questions second. after the federal The government has decided that election, that whatever where, for example, a freight forwarder I wrote an article on overweight or contracts for cargo to be delivered misdeclared weights of containers government was formed from outside Australia to a place of in the winter edition of this magazine it should not shy away consignment in Australia that it should and on that score, there have been be GST free all the way through. This significant developments. Firstly, from the major reforms. would appear to have ramifications the World Shipping Council and They need to be made for shipping lines in terms of the the International Cargo Handling current practice of charging GST Coordination Association have been in so many areas of our on land based costs in Australia for investigating and surveying shipowners economy in order to try imported containers, particularly within regarding the best way of weighing the container terminal, such as the outward containers with the view and reduce the massive payment of terminal handling charges, to eventually deciding whether to over regulation that documentation fees and wharfage. The propose to the International Maritime applies to everyone at Australian Taxation Office agreed that Organisation, the establishment of this is an area that required clarification a legal requirement that all loaded different levels in and have been consulting Shipping containers be weighed prior to being our society. Australia on the best way to develop a loaded onboard a vessel. This work is fact sheet specifically for the shipping building on the International Chamber There has been a industry. We are urging the ATO to of Shipping document ‘Safe Transport develop that fact sheet as quickly as of Containers by Sea: Guidelines and buildup in the nationally possible to avoid the current level of Best Practices’ which was published agreed reform agenda uncertainty and to provide for national at the end of 2008. The emphasis in and the council of consistency in application. those guidelines was the importance of those who packed containers The master of the Pacific Adventurer, Australian Governments declaring the correct weight but it Captain Santos and the shipping was also suggested that the container will soon be considering company involved have been terminal should verify the container a report card on what committed for trial in Queensland weight against documentation by use following the oil spill by that vessel off has been acheived. of a weighbridge or weight gauge/load the coast of South East Queensland in indicator on yard equipment. There will be March last year. SAL has been most significant gaps. concerned that the defendants will not Container weighing is a complex issue

2 2010 AUSTRALIA Spring Announcements from the bridge By Llew Russel but making it compulsory would be the container which includes the tare lines and we have taken the opportunity very difficult for developing countries nett weight, the nett weight of cargo to set out cost increases over the last and smaller ports and it could have and any packing material within the three years in major Australian ports similar problems to those that are likely container. This gross weight should during a time of severe challenges for to arise as a result of the proposed 100 be shown on all documentation shipping lines imposed by the global per cent screening of import containers including the Pre-Receival Advice. financial crisis. As an indicator of the into the United States. A timetable for Weighing mechanisms could be competitiveness of Australian ports, the latter issue has been extended established at packing stations and/or and it is hoped that the requirement public weighbridges used to provide we have also conducted a survey of will be rescinded because of its the required certificate. This weight primarily ship based port costs based impracticability. certificate could also be passed to on public tariffs and constructed a port the container terminals receiving the cost index with Melbourne port costs as Secondly, putting weighbridges Australian export containers overseas. the base. in terminals poses its own serious There are other potential solutions and problems regarding how to handle Our Viewpoint article examines what Shipping Australia continues to urge all containers that are found to be over parties to collaborate on a practical, risk really is happening in the Year of axle weights and thirdly, many countries based solution to this complex problem. the Seafarer as far as their welfare overseas, particularly the United States, We do agree that it is time to take is concerned and all the risks they many terminals in China and Japan urgent action on this important issue. face daily at sea including, of course, and other countries are weighing their the potential of being hijacked by outward containers so it would be I reported previously on our problems pirates. The difficulty of attracting new weighing those containers twice as with the application of the Fair Work recruits to be the seafarers of the they come into terminals in Australia. Act to a large number of permit vessels It is not just the cost of establishing that carry Australian cargo around future remains a challenge for us all. weighbridges in container terminals, but the Australian coast if an Australian Increasing criminalisation of seafarers the high repairs and maintenance costs licensed vessel is not available. More as mentioned above also continues to and labour and electronic systems costs recent cost modelling has revealed deter would be seafarers from entering that are required to support the facilities that our previous cost estimates were this industry. We indeed have much that really add to the overall cost. far too low and the cost impact of to be thankful for all those seafarers even the application of Australian who continue to risk their lives at sea Accurate weight minimum wages to foreign crew whilst to ensure the ongoing development of carrying coastal cargo under permit world trade. declaration essential is very significant. All carriers have for export containers had to increase their charges to cover Shipping Australia was pleased to this additional cost and take in other be able to take a table at the 10th Exporters/packers of export cost increases such as the significant anniversary of the establishment of containers are reminded of the increase in wharfage for coastal the Australian Marine Environment cargo handled in Melbourne. Whilst necessity to declare the weight Protection Association held in Brisbane, the withdrawal of services has been of containers packed as: and some happy snaps are included minimal to date, it is anticipated that as well as the Queensland State more services will be withdrawn when Nett cargo weight+packaging/ Committee golf day in our regular the full application of Part B of the dunnage weight+ feature The Scene. tare weight of the modernised Australian Sea-going Award applies from 1 January next year, which container = gross weight. Shipping Australia has been very will result in another significant increase busy in the last few months seeking This gross weight should be in costs. to improve the efficiency of empty shown on the electronic Pre- Shipping Australia continues to container parks in Sydney, Melbourne Receival Advice (PRA). urge the Australian Government to and Fremantle and there is also exempt coastal cargo that is carried increasingly concern about congestion incidental to international trade from in a number of container terminals in a The real question is whether the the application of the Fair Work Act. number of our major capital city ports. remedy is worse than the cure? What We have provided criteria to the is the level of risk of inward containers More about that in the summer edition government to achieve that result, of our magazine. exceeding overall axle weight limits? which in our view, would still meet the It is appreciated that certain inward government’s requirements. Spring is a time of new birth and growth commodities are heavy, although a far and hopefully we can look forward with less percentage compared to export We review South Australia in this edition containers. Nevertheless, the heavier and the CEO of Flinders Ports, Vincent greater optimism to the development inward containers could be sent for Tremaine is the subject of our profile. of policies in the future being more weighing at a central weighbridge close The potential minerals boom in South conductive to trade facilitation. to container terminals and container Australia is really exciting and Archie Correction: depots where the boxes could be Bayvel casts his investigative eye over repacked if found to be overweight. those developments as well as the wine Our economy article on page 38 industry, fisheries, car manufacturing, As far as export containers are of our last issue was incorrectly the north-south rail link and the new concerned, one solution is to ensure headlined “Australia’s GDP defence facilities within tech-port. weighbridge certificates are required growth is expected to average before containers are exported as it is The cost increases in South Australian 10 per cent”. It is, of course, really the responsibility of the packer ports, as well as elsewhere, continue China’s GDP that’s growing at to declare the correct gross weight of to pose problems for member shipping that rate.

Spring 2010 3 AUSTRALIA Viewpoint By MICHAEL PHILLIPS It’s The Year of The Seafarer but who cares?

hen first Who can raise a hand and say: “Yes, we bad and indifferent owners and crews. have been out in a plunging ocean in Perhaps one rubs off on the other given appointed the middle of the night with dark skies, the expectation of low prices on one chairman of wind shrieking, the vessel shuddering hand, a demand on the other for first W as it shoves a sea aside, listening to the class vessels with double bottoms, rigid Shipping Australia in deafening roar of that rogue wave that safety and all conforming to the highest rears up out of the dark?” level of individual country standards. 2005, I commented on Something has to give and, you’ve You might ask: “What about the sunlit guessed it, that’s the poor seafarer and security as an ongoing days and flat sea when all is well with the his lot in life. issue where we needed world?” But whereas we all go home of an evening without a care in the world; Why should it be so? There is a dearth to find the balance what awaits the seaman after being at of seafarers and it has one of the oldest between it and being sea or indeed even before he starts upon and proudest traditions and skills. To his voyage? the layman it comes with visions of able to trade. Within billowing sails, proud passenger and Forms in triplicate, that’s what! Plus cargo vessels and the illusionary vision the context of trade seamen’s identification cards, security of the tramp. However, again one could checks and so on. If he is one of the be forgiven for doubting the veracity of this has taken many lucky ones who actually visits a capital this vision. paths along the way, port, he gets a chance to stretch a leg ashore; if consigned to a bulk port, he In Australia we have actively been but if we relate it to faces a dreary wait at anchorage and canvassing the resurgence of coastal seafarers, then of upon berthing - usually at an isolated trades and manpower to go with it, yet pier miles from nowhere - there is nothing what does a prospective seafarer face course we have a apart from loading the vessel and sailing if he rises to the call? - Criminal action different story to tell. on his way again. and possible threat of jail, that’s what, if Casting my eye back to 2005 again, I things go wrong. It is appropriate in this recall headlines saying: “Freed crew fear Seafarers face long for safety” The issue ? - Pirates. At least Year of the Seafarer 23 hijackings and attempted seizures in absences from home, the that we address that year. Fast forward to 2010 and what risk of disappearing beneath has changed? - Nothing really apart the waves with nary a ripple seafarers’ issues, their from a lot of talk, large ransoms paid and raised in protest. Who can lot in life and who an increase in pirate activity. blame young people when cares about them. What did the crew in 2005 fear? - The they look for more thought of being hi-jacked again. lucrative and comfortable What do you and I fear? - Perhaps the careers ashore? train not arriving on time, a break- in at It is worth remembering the worthy home, an accident on the way to work; aims espoused at the IMO 2010 issues which, when compared to a pirate Manila Conference where Resolution putting a gun to your head or strafing the 18 included urging us all to support deck, pales into insignificance. At least in case of abandonment, to accept we can always ring the police, voice our our responsibilities in respect to complaints to the latest shock jock or as seafarers’ injury or death, to observe the a last resort, consult our local MP. international port and ship security code Yet here we are with the seaborne trade and to prevent and suppress acts of conveying 90 per cent of the world’s piracy and robbery against ships. goods, all reliant on one-and- half million These should be fixed to everyone’s seafarers to ensure they are safely wall as a reminder that when you next carried to their destinations. open that fridge, turn on your computer What then of conditions onboard such or drive an imported car, that it is made as wages, food, and state of the vessel? possible only by the skill and devotion We all know there are excellent, good, of those who risk their lives at sea.

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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] Profile Vincent Tremaine, chief executive officer, Flinders Ports The iron man with a big vision for his life and work… By Archie Bayvel

ention Vince surpasses Everest) who are preparing “My deal was that I’d become the for their final year school exams, plus the port’s CEO if the takeover came off Tremaine and little matter of having seven ports to run. and if it didn’t, they owed me nothing. sooner or later Ah, yes, the ports! But before we get M “The deal went through and I became someone will ask: to them, let’s look at how he got to “Has he fallen off his them, his path to that particular peak the CEO at Geelong. bike recently?” One Born in London, he arrived in Australia “Then Toll bought TNT and we won aged six when his father came to work the rights to run Westernport and when can almost feel the for Ford in Geelong where Vince was Toll began a stevedoring business at schadenfreude!! eventually to spend a significant part of his career. Geelong, Paul Little let me run that too. But along with budgie smugglers, At Monash University, Vince twiddled “By the time we’d bought Strang falling off his bike is one of the things with a science degree for two years Stevedoring, Energy Victoria and a never mentioned during this chat with before graduating with a B. Bus., trucking company, we were looking Vincent. majoring in accountancy. at buying Flinders Ports but that all Probably just as well because he He began his working career in the became too much and Toll dropped does an awful lot of cycling … and automotive industry in 1978 before out of the bidding. swimming and running because he’s moving to a printing company, a an enthusiastic surfer and iron man publishing company, another printer, “Soon after that, the winning competitor who qualified in October and then taking a 50 per cent cut consortium for Flinders phoned and to run in the Hawaiian Iron Man event, in salary to gain experience in equivalent of the world championship. advertising with The Market Place asked if I’d like to run Flinders. I No mean feat for a little guy quite marketing group. He then moved refused at first, and then couldn’t wait long in years (he’s 51) and quite short to the food industry with Arnott’s to change my mind ... that was in in height (169 cm) to be running, where he became a state sales and January 2002 and I’ve been here ever distribution manager. swimming and cycling with the world’s since. best. By the time you read this, he’ll “By that time I had a lot of experience have run the Melbourne Marathon as a and when the job of marketing and “I kept costs down and preliminary to his tenth iron man event, service manager came up at the Port they were very supportive. the Australian championship at Port of Geelong it marked the beginning of Macquarie in May. my career in ports,” he says. I’ve been fortunate with Above his desk at Flinders Ports, “Geelong port was owned then by the my management team and hangs a large colour photograph Victoria Government and I did that I encourage debate among portraying exactly what its caption job for six years, during which time I says: The world from the summit of made a private trip to the UK where I them. Running the ports is Mt Everest. saw the enthusiasm for privatisation in a very creative business Sometime among all his activities Britain and for Tilbury port in particular. as a result. Vince has also climbed Merc Peak, “So I began talking to financiers and a 6400-metre mountain about 25 to managers at Geelong about how “Many of these ports are also facing kilometres from Mt Everest. Would he it could be achieved there. I also did the challenge of their lives as South like to have a go at Everest? the first set of numbers on how the Australia’s own mining boom gathers He hesitates for the first time, musing on privatised port would work. momentum. the $50,000 minimum cost of an attempt, “I didn’t get my vision across the line its very real dangers, the fact that it’s “Developing companies are seeking and was asked to leave! 2400 metres higher than solutions to enable them to export iron Merc Peak, the need to first “I was working as a consultant and ore. Many of them are junior miners climb Cho Oyu, an 8400-metre qualifying looking for a career opportunity when with low cash flows and if we can get mountain, his twin teenagers (one TNT asked me to take on one of its of whom plays off seven at golf – an facilities but I said: ‘Why don’t you buy their product to market quickly it will achievement some would say that the whole port and I’ll run it for you?’ transform their growth.

6 2010 AUSTRALIA Spring Profile Vincent Tremaine, chief executive officer, Flinders Ports “Currently five services (there used to be eight) operate through Port Adelaide, including a new one by UASC-Arabian Line and Hapag-Lloyd. We’re competing with ports all over the world to attract new services and we’re just part of the international mix, but our container trade has a substantial growth future. “We handle around 270,000 TEU pa - showing a step increase, rather than linear growth of about 8-9 per cent a year – and there’s a leakage of some 35,000 – 40,000 teu by truck to Melbourne. Exports are about 60 per cent. “We’re building a new bulk facility with sheds for iron, zinc, copper and mineral sands miners, bunkers and rail on to the site. Work has already begun to prepare 30 hectares for the mining industry and the pending mining boom is taking up most of our development effort while we are also striving to attract container industries.” Some agents around the port are clamouring for a second post- panamax crane but Tremaine argues that the port must first balance sensible capital investment against over-capitalisation. His team is looking at Bonython, currently a dedicated Santos facility, as a greenfield port site. Like Whyalla (One-Steel), it is currently an indentured port which means its operators have it on an agreement with the South Australian Government similar to exclusive leasehold. Vince Tremaine with muscles to rival Ben Cousins wins It’s a lot on the plate for a man who front-cover fame during a triathlon event. doesn’t seem to have entirely given “I didn’t recognise it as me at first,” he says. up on Everest which is out there “It was my helmet number that caught my eye.” waiting for him. But he dismisses the subject. “My job is to support our Flinders team in The seven ports under Flinders’ getting the iron ore flowing,” he says. And so the iron man cyclist, runner wing are: and swimmer bends his mind and body to the task. • Port Adelaide; Australia’s 5th biggest container port. • Port Pirie; 650,000 tonnes of zinc and coal. Flinders Ports • Walleroo; Another grain port. Shareholding • Thevenard; whose annual exports include1.5 million tonnes of gypsum; 400,000 mineral sands; 150,000 tonnes MTAA Superannuation of wheat. Fund - 35.71% • Port Lincoln; A major fishing port with significant traffic Galaxy - 35.71% in wheat and barley, fertiliser and fuel. equipsuper - 14.29% • Klein Point; Sending 1.5 million tonnes of limestone a year to Adelaide for cement manufacture. Local Super/Diversified Infrastructure • Port Giles; A grain port with 14 metre draft able to take a Trust - 14.29% fully loaded panamax.

Spring 2010 7 AUSTRALIA Advertorial

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Adelaide today looks better

Look out, than ever and South Australia’s Adelaide! entire economy seems on the verge of going stratospheric.

Mining We assigned ARCHIE BAYVEL Bonanza to go there and investigate what’s going on and the people Ahead who are driving its change…

f it all comes off, the city will never operation at Roxby Downs, in the very its anchor tenant and a very interesting again need recourse to the “city of north of SA. It’s the world’s richest $multi-million common-user wharf as a Ichurches” tagline that has marked known mine and the pit will have a mini-jewel that few people in or out of a certain other-worldliness this past bigger circumference than the entire shipping seem to have heard of. 50 years while booms and busts have city of Adelaide and be more than a It’s already complete and looking for blossomed just about everywhere else kilometre deep. business worldwide and nationally. in the nation. Imagine it – a man-made hole big The 8-hectare facility includes a fully The single event most responsible enough to engulf the entire city, serviced 213-metre heavy duty wharf for this dramatic change is mining churches ‘n all!! with a depth alongside of 10.5 metres. Its shiplift is the biggest in the southern and mining and mining. Many of the When it happens Olypmic Dam will little mines, the juniors and glints in hemisphere at 156 metres long and 34 change things forever in Darwin too metres wide. optimists’ eyes are moving toward because much of Olympic’s output is serious production and will result in scheduled to go north by rail although The world-famous wine industry is Adelaide and South Australia never the avalanche of imports needed to suffering the same severe over-supply being the same again. get the mine up to speed are expected of grapes afflicting the rest of world. Vince Tremaine, CEO of Flinders’ Ports, through Port Adelaide. Now the South Australian drought says he and the seven ports in his has broken and this year’s plentiful Apart from the elephant and family rains have re-hydrated the soil and group are facing the challenge of their there are a lot of other South Australian lives as the state’s mining boom gathers wine producers look like producing an denizens with rosy expectations: excellent crop. momentum. DefenceSA is a government operation And Neil Murphy, GM of the SA Freight that has built a 400 hectare defence- Council, says that if mining is the focused industrial park on the LeFevere elephant in the state’s boom, there is Peninsula, just a few kilometres an even more significant monster within downriver from Port Adelaide. It aims to that and when it eventuates, rampages become the national defence industry or does whatever such brutes do when capital. they reach maturity, will dominate the nation’s minerals economy. A 90 hectare enclave call TechPort specialises in maritime industries with He’s talking about BHP’s Olympic Dam the Australian Submarine Corporation as Neil Murphy

10 2010 AUSTRALIA Spring South Australia

Which is bad news! Because it means a forced 20 per cent reduction in the State’s 3700 growers and a federal government bail-out to enable them to leave the land or to establish an alternative use for it. Already vineyards are being pulled out or mothballed and grape varieties are being changed and it seems that unless growers have a firm contract for their crop with an established brand, they will need to consider moth-balling their vineyard for a year or even to pull out some vines. Brian Smedley, chief executive of the South Australian Wine Industry Association, says: “We need to reduce production to equate to demand or increase demand and find new markets.” You can’t review South Australia without taking in Port Lincoln, richest town in the nation on a per capita basis and whose wealth spouts from one of the The shiplift at Techport is a lot bigger than it looks. Compare with the size of workers in the picture. world’s most creative fishing industries. Among all its rough and ready operation is at last free of the crushing production on November 15 when millionaires, you can’t go past catching interest debt that has always gobbled production begins on GM’s Cruze, a up on the latest exploits of tuna up its operating profits. new model for Australian production, magnate Hagen Stehr, particularly and new sales are predicted for the Only time will tell –and Genesee has the current position of his Clean Seas Statesman and Caprice models and bought 50 years of that time –what Limited. The company caused a Holden utes. the railway’s full potential may turn out worldwide aquaculture sensation when to be. But let’s note that the greatest Doomsayers predict the huge plant and Hagen announced that he would beat early American fortunes were created its 2300+ jobs will all be gone within 10 the southern bluefin tuna wild catch by pioneer railroad kings whose tracks years and struggle to even remember quota by breeding them on land. turned the Wild West into the world’s the city’s glory days of GM- Holden We’re talking here about fish larger than wealthiest region. Think of Darwin as AND Mitsubishi. It is a prediction GMH a big man that can sell for $50,000 + San Francisco in its pre-goldrush days. vigorously denies. each on the Tokyo market. If Adelaide and its hinterland does in Andrea Matthews is the company’s But the project has proved harder fact turn out to be the new Pilbarra, SA spokeswoman and says: “It’s core than predicted and its investors, who FreightLink and its track, plus the Holden policy to retain a manufacturing include many high-profile people, have modern city infrasatructure of Adelaide base in Australia.” Asked to confirm that lost $millions as Clean Seas shares will turn out to be the difference statement and her authority to make it plummeted from around the 70 cent between the civilisation of a significant she does just that. mark to as low as 5 cents, 11 cents at part of our continent nation and it Her situation takes one back three time of writing. More about that later. remaining a wilderness years to a certain Mr Calton Frame Port Lincoln’s wild catch fishing is You probably couldn’t get bigger and of Gunns, the Tasmanian forestry booming, however, with every sign that better ports than those at Dampier company. Standing in for John Gay, his the tuna stocks are responding to the and Port Hedland but through lack managing director, Calton confirmed strict quota system and recovering from of basic civic amenities – never mind that all approvals for Gunns’ new pulp over-fishing faster than expected. skyscrapers, boulevards and iconic mill were in, its effluent would be purer buildings – they and the rest of the than human breast milk, etc, etc. Another SA enterprise of interest is the Pilbarra are doomed to remain fly-in:fly- We suggested that readers cut out our north-south trans-continental railway. out territory until the last plane departs. article, stick it on their fridge for five To a few, the line is a white elephant The city and the rail line will be what years then check back. Time has a bit and not worth the $1.5 billion it cost makes the difference! to run yet, but Mr Gay has gone from to build; to many others it is the single Gunns, and no mill is in sight. most important piece of national Finally GM Holden, the old industrial infrastructure since Wentworth, Blaxland master of Adelaide whose population Here’s hoping for a better outcome for and Lawson blazed their initials on The historically shivered through strikes, lay- cheery Ms Matthews and the head of Explorers’ Tree at Katoomba. offs, and all the terrors emanating from Holden on whose behalf she spoke so a monopoly employer, is on the brink of confidently. One can’t help, however, Its operator, FreightLink, appears to rejuvenation and giving a new lease of reaching for the scissors and paste be going from strength to strength and life to manufacturing in Adelaide. while clearing a spot on the fridge door. with its $334 million sale by its founding consortium to Genesee & Wyoming, the After running only one shift since So much for a roundup of human last May, the company returns to full industry in the shimmering city of

Spring 2010 11 AUSTRALIA South Australia

such a well-regarded businessman to lead DefenceSA”. Fletcher himself simply says: “Others facilitate but engineers deliver.” He should know after 35 years involvement in the engineering and construction industry; most recently directing projects around the world with an annual turnover in excess of $1 billion and employing 2700 staff in 45 offices and 20 countries worldwide. Andrew retired from that job with the idea of cutting down on travel and spending more time at home. His current task is to elevate South Australia to become the defence industry capital of Australia and he’s lobbying the admiral in charge of the USA’s Pacific Fleet to send work for his Techport Victoria Square facilities. After visiting him in Hawaii, he’s optimistic about his prospects. Adelaide. What about the humans perhaps of a grapefruit, is revealed themselves? Standing in pelting rain hanging so low that on any other The common user facility’s shiplift can outside the Medina Treasury hotel, one person it would be called a bum bag. support vessels up to 9300 tonnes and observes a man slightly under average is designed to expand to 210 metres Reflection on all that is cut short by a and a 22,000-tonne lifting capacity. height, portly and with the gravitas taxi U-turning across six lines of traffic of gentry in a British Warm overcoat to mount the pavement by some two For commercial and naval vessels alike, left stylishly open despite the tempest metres and stopping very, very close. it offers a unique repair facility with its to reveal a pinstripe suit and an old Like toecaps close. rail-based transfer system enabling Etonian tie. He looks sternly ahead as large vessels to be moved off the he cruises the morning rush hour. “Are you Gentleman Room No 71?” shiplift and runway to dry berth sites. asks the Peter Sellers impersonator at A hugely fat woman overtakes him the wheel. Andrew Fletcher says on-voyage repairs and she is passed in turn by an even and between-voyage maintenance more obese lady, close behind whom All that on the north side of what today for the growing number of cruise hobbles a female dwarf with a stick. must be among the world’s biggest vessels visiting Australia are also on and most delightful civic centres. It is Like the man in the black tie with the his customer hit list despite military Victoria Square, where serious business requirements being the prime market. narrow light blue stripe, none look to left waits to be done. Not so serious, or right. If they had, they’d have seen however, as to preclude watching the The common user facility already has that his extraordinarily long shoelaces old Etonian until he disappears, while its first major job lined up: Providing are both untied and flail around his guiltily hoping to see him trip over his the hard stand for assembling the three ankles and most dangerously under own laces. vessels of the $8 billion Air Warfare foot. Destroyer project. Each ship will be Some $52.73 later comes As he passes, a tiny backpack the size, manufactured in 30 modules, some Techport’s common user built as far away as Newcastle, and facility at Osborne. Overlord of assembled here. Techport is one Andrew Fletcher whose past career, size and The destroyers will be built by what status is reminiscent, albeit one may call Techport’s anchor tenant less ferocious, of Sydney’s Max – the Australian Submarine Corporation Moore Wilton. – which will also use the common user facility in the course of its 25- Fletcher is CEO of DefenceSA, the State year, multi-$billion contract to service department responsible for developing and support our fleet of Collins Class Techport as a whole and its common submarines. user berth in particular. Techport will also be home to building Engineers Australia named him 2009 our 12 next generation submarines South Australian Engineer of the Year which will be Australia’s biggest single and Adelaide’s daily newspaper, defence project and due to begin in The Advertiser, outed him as the 2016. government’s biggest earner with a take-home package in the $480,000 The vast Techport site includes ASC’s to $489,000 bracket.State Treasurer submarine plant and its shipbuilding Kevin Foley commented that Fletcher’s yard. Commercial and supplier precincts department had won $44 billion in have been completed and their first contracts and said “Andrew is one of tenants have moved in and a further our most valuable assets and we are commercial precinct has been allocated Andrew Fletcher (left) with Paul Bates who is manager fortunate to have been able to attract right at the entrance to Techport. of the common-user facilities at Techport.

12 2010 AUSTRALIA Spring REVOLUTIONISING OUR PORT’S SUPPLY CHAIN

Sydney Ports Corporation is a manager and developer of world-class, efficient, sustainable ports and logistics networks.

Today, we are improving Port Botany’s supply chain with the most ambitious ports reform agenda ever put forward in New South Wales – the Port Botany Landside Improvement Strategy (PBLIS). Our commitment is to: Maximise the efficient movement of trade passing through the port Provide greater transparency of the overall supply chain performance Improve industry communications and provide regular information updates.

With international container trade continuing to grow, Sydney Ports is leading the PBLIS reforms, which will introduce fairness and equity into landside arrangements at Port Botany. These reforms will also provide a more competitive supply chain for all port users. Supporting the reforms are other major infrastructure projects, including: The construction of a third container terminal at Port Botany that will nearly double the current handling capacity of the port The enhancement of Sydney’s intermodal terminal network through the construction of the Intermodal Logistics Centre at Enfield that will support the increased movement of container trade by rail through Port Botany. “ We are leading landmark reforms to improve the port’s supply chain”

www.sydneyports.com.au South Australia

The present dedicated commercial and “Some growers already have cattle or “It’s easy to make wine but hard to education precincts are already full and sheep so removing their vineyard is sell it,” Brian Smedley says.” That great operating on projects associated with not necessarily a big deal, especially bunch of grapes you’ve turned into tooling up for ASC projects. if it was installed only recently to take a lovely product is all very well but advantage of the recent boom in grape will anyone buy it? What will ignite its Tenants on the 14-hectare supplier prices. In the late 1990s, there were market? It can be something unrelated precinct include Babcock Integrated significant grape plantings in areas to the wine itself, such as the label or Technology, Ferrocut, Le Fevre that did not offer the best production even a sense of place. Yellowtail is Development, National Crane Hire, prospects, so today’s reality is to an example of a particular wine style Pacific Marine Batteries and, of course, closely examine vineyards and preserve catching on.” the ASC and its related Air Warfare only the very best producers. Destroyer Alliance. The nine supplier sites still available range in size from “Australia has only four or five per cent 9307 sq metres to 4188 sq m. of the world wine market and one US company, E&J Gallo, produces more Meanwhile, back in Rundle Street Mall, wine that our entire industry. But we the city’s café and hurried-lunch centre, need to evaluate our price, profitability one can’t help but note how multi- and quality and not fall into the trap of cultural this once primly anglo city has volume. Above all we need to aim for become with migrants the like of which finer, premium wines. Sydney and Melbourneites would rarely see. “We need to be aware of particular market segments and what drives them Doing their thing amid the crowds, are and marry consumer preference to our Brian Smedly many people with skin so black you can product. barely see them; a seemingly cheerful lot, they look well settled-in despite they “We’re looking to new varietals and Reaching the offices of FreightLink’s almost certainly come from parts of exploring new markets with them. It’s a managing director, John Fullarton, at Africa with terrifying memories. matter of educating consumer palettes. No 1 Station Place, Hindmarsh takes Pinot grigio, pinot gris and viognier are place in torrential rain and brisk to Literally head and shoulders above examples of the way we’re going. fierce winds. It needs the services of yet the throng, one sees occasional black another Peter Sellars-impersonating taxi people of extraordinary height – around “They are already established but not driver. “This is No 1 as you can see,” he the 2 metre mark. A cheerfully, dignified varieties that people would normally says. “It is the first building in this street gaggle of lofty teenage girls makes one associate with Australia. Most wine as we both can see.” ponder the future of Australia’s fashion drinkers would need to take a second Indeed it is and indeed we can but it models when these girls have the years look at them because their market doesn’t seem quite right. It is a small and confidence to flaunt their poise and penetration has been small. Feedback grey cottage with a bright red door. On stature on the catwalks. however is that market interest is increasing although nowhere near the the other hand, it is where No 1 should Then at a bus stop, is the opposite end penetration achieved by cabernet or be, directly opposite No 2. It must be of the human scale where a tiny black shiraz 10 years ago. some kind of reverse snobbery – a couple wrapped up against the freezing great transport corporation hiding its rain with caps pulled down and scarves “Merlot is a good example of growing luxurious HQ behind a super modest wrapped tight are still identifiable by interest – a few years back, it might façade. their size and substantial backsides as have been hard to find while now it is African bush people. part of almost every brand offering. New Zealand sauvignon blanc is another, its Not-so-long-ago we had to travel the market share having grown from world to meet its different people; now 5 per cent to 10 percent in the past they are coming to us. Even to douce three years. Adelaide!! The big end of winetown includes South Australia’s culling of Fosters, Orlando, Constellation (formerly its vineyards will spread to Hardy’s) and Yalumba while Berri all wine-growing states, says Estates, in the Riverland, is an industry Brian Smedley, CEO of the giant crushing 100,000 kilos of grapes South Australian Wine Industry a season. Association. Not No1! Among the middle-range producers “It means some growers will go out of Angoves and Kingston Estate are A firm push on the red door produces business and others will need to change also substantial exporters. Another no result but closer inspection reveals a their grapes. All will need to restructure 100 – 150 smaller companies also small notice which invites one to “Press to position themselves,” he says. dabble in exports ranging from a single bell and enter for massage.” A second pallet through to a container to many note reads: “Hey guy’s we’re cute.” One “Adelaide is the engine room of containers of wine. One or two are is tempted to follow instructions and Australia’s wine industry, home of the exporting bulk wine in bladders for press the bell but the thought of John iconic regional names, and the national processing overseas. Some of it going Fullarton watching unobserved and focus is very much on us to solve the to the exporter’s own overseas plant disapproving from some neighboring glut problem because it is home to and more going to independent bottlers. high rise is, forgive the allusion in the the national wine organisations and circumstances, something of a downer. research institutions.

14 2010 AUSTRALIA Spring South Australia

“It’s easy to make wine but hard to sell it,” Brian Smedley says.” That great bunch of grapes you’ve turned into a lovely product is all very well but will anyone buy it? What will ignite its market? It can be something unrelated to the wine itself, such as the label or even a sense of place. Yellowtail is an example of a particular wine style catching on.”

Brian Smedly A FreightLink train on the north-south transcontinental line. Any bridges and tunnels on the route have either been eliminated or constructed to allow for double-decker trains. Reaching the offices of FreightLink’s managing director, John Fullarton, at So one retires to the cab and, ignoring “Exports” became the buzzword used Asia. The rail containers have standard No 1 Station Place, Hindmarsh takes Peter Sellars, phones FreightLink. They to justify governments’ massive cash twist-lock fittings but they travel on 48ft place in torrential rain and brisk to are, their telephonist says, in the tall input to build the railway and it proved multi-purpose wagons that can handle fierce winds. It needs the services of yet office block next door. It turns out, to be a more popular sales pitch than another Peter Sellars-impersonating taxi almost any configuration including that far from being at the door of No any talk of nation-building would have driver. “This is No 1 as you can see,” he double-stacking. Unlike the eastern 1 Station Place, I am in fact standing been. says. “It is the first building in this street states’ rail track, the north-south line at the side entrance to No 95 Port as we both can see.” So far not much has come of that. has been built free of overpasses and Road whose front façade is painted The railway today owes its Indeed it is and indeed we can but it bright pink and carries a huge sign profitability and immediate MOVE MORE BULK doesn’t seem quite right. It is a small declaiming it as the home of “Bikini future to bulk mineral grey cottage with a bright red door. On Girls”. exports and providing a the other hand, it is where No 1 should MOVE MORE BULK One enters the real No 1 with highly efficient supply line be, directly opposite No 2. It must be for the domestic needs the thought that after all this – Diesel - Hydraulic model some kind of reverse snobbery – a of the big city Darwin will the gale and torrential rain being great transport corporation hiding its become when it breaks the NEW the least of it – Fullarton and luxurious HQ behind a super modest shackles of vested interests façade. FreightLink had better be good. that limit its new housing After hearing how it is supposed to be growth. “losing money hand over-fist” and “a The facts are that when white elephant” one can’t help feeling FreightLink launched in that FreightLink is still widely under- 2004 it carried 600,000 estimated and under-appreciated. tonnes of freight. This year Some critics would prefer its capital it carried 4 million tonnes cost to have been spent on extra of which 40 per cent was bulk minerals and 60 per cranes and other improvements on cent general consumer the Adelaide waterfront. They talk merchandise for Darwin. about what they perceive as its lack of profitability as measured in export Ironically, the railway carries TEUs. its non-bulk freight in containers. But they come A firm push on the red door produces Part of the problem may be a “they in all shapes and sizes and, wish” component in the mind of those no result but closer inspection reveals a like airfreight containers, MVM45722 small notice which invites one to “Press focussed on international shipping are very different from those Australasia's leading grab manufacturer, boosting containers ie. If it doesn’t go in a 20 or bell and enter for massage.” A second used by shipping lines. productivity for bulk discharge note reads: “Hey guy’s we’re cute.” One 40 ft box then it doesn’t really exist. MVM45722 MVM45722 is tempted to follow instructions and Despite that, four IntegratedAustralasia's• Low operating noise height reductionleading / grab manufacturer, •Advanced Superior diggingEaton Vickers abilityboosting and Some are said to have felt, before the press the bell but the thought of John international lines – Swire, design.drift profile controlextended technology. service life Low drift profile.productivity for bulk High dischargequality components Fullarton watching unobserved and first rail was laid, that they should be Perkins, HiWin, and • Leak proof bucket • 8-15cum capacity against it for fear of the railway’s own Mariana Express Lines do Leak•• Low Low proof operatingoperating bucket heightheight sealing // •• and Superior Superior robust diggingdigging design abilityability for extended andand disapproving from some neighboring system.sealing design • operating Full technical life. support and driftdrift profile profile extendedextended serviceservice lifelife high rise is, forgive the allusion in the widely expressed dream that it would carry standard shipping • Chain operated hoisting system 10-14cumparts service capacity. become a landbridge to Asia through containers out of Darwin •• Leak Leak proofproof bucketbucket •• 8-15cum 8-15cum capacitycapacity circumstances, something of a downer. Ph +64 7 575 5079 www.pmgrabs.com [email protected] Darwin. bound for north China and sealingsealing design design • • Full Full technicaltechnical supportsupport andand •• Chain Chain operatedoperated hoistinghoisting system system partsparts service service PhPh +64+64 77 575575 50795079 www.pmgrabs.comwww.pmgrabs.com [email protected]@page-macrae.co.nz 15 AUSTRALIA South Australia

with tunnels able to accommodate railway company after QR, Pacific “Genesee & Wyoming was an original double-stacked trains. National and FreightLink. member of the railway syndicate and already provided FreightLink with its John Fullarton claims a 90 per cent Freight link’s financial story is more train crews, control services and some share of the north-south freight market complicated than such a grand venture rolling stock. The sale will be completed while the other 10 per cent goes by deserves. Despite its immediate towards the end of the year with Bert road and in Darwin two years ago, operational success and surplus Easthope, Genesee’s CEO taking over the leading member of the shipping cash flow it was burdened from day my position.” community there, Robert Ritchie - the 1 by having to service the railway’s port’s CEO, went on record as saying enormous construction debt. Press reports are of a sale price “the railway is a huge asset to the port.” around the $334 million mark and “We spent our first few years growing critics compare that with a construction In bulk mineral terms, three miners this business,” Fullerton recalls, ”then cost of $1.38 billion and focus only dominate the bulk rail use: Territory the need to restructure our debt or on the missing billion regardless of its Resources (an iron ore miner near sell the business became imperative. contribution to the sovereign values of Darwin), OM (a manganese miner We almost sold it in 2008 but our the Northern Territory, South Australia near Tennant Creek), and Oz Minerals subordinate debt holders opposed it and the Commonwealth plus its future (mining copper at Prominent Hills). because they thought they could get a earning power and tax contribution. A fourth contract begins this month better price. As a result, receivers and (October) with IMX Resources to carry administrators had to be appointed. We The fact is that the sale means the new magnetite and copper from its Cairn almost sold it again last year but the operator arrives on a no-worries no-debt Hill operations near Cooper Pedy. The GFC trashed the financial markets and scene – a luxury that John Fullarton trains will be operated by SCT Logistics, it wasn’t until this year that Connecticut- never enjoyed yet still managed to of Melbourne, a specialised bulk rail based Genesee & Wyoming closed a increase traffic seven-fold in less than carrier that is Australia’s 4th largest deal. six years. The hard times of a man of vision… When we first wrote about him at the High profile investors who have already all the support he can get. peak of his fame and fortune, we saw lost millions in the project are putting Expectations that Hagen will perform him as the future of Australia’s fishing their hopes on the company having a last-minute bail-out from his own industry. He may still be that … it’s just enough working capital to see out personal fortune are likely to be wide of that his future has moved a bit more this season and place its first tuna the mark; largely because a large part into the future. fingerlings in the ocean early in 2011. This will confound doomsayers who of that fortune has already sunk along We’re talking about Hagen Stehr, former predicted it would have run out of cash with those of his fellow investors. French Foreign Legionnaire, penniless weeks ago. His wild tuna cash flow is believed to arriviste at Port Lincoln, founder of his be owned by a private family company, own tuna fleet and finally man of vision Analysts believe it is being buoyed by some stabilisation of costs and predict the Stehr Group, and - subject to who would breed southern bluefin in the fingerling release, if it eventuates, any cross-shareholdings - would be huge land tanks before growing them will cause a spike in Clean Seas’ share quarantined from the Clean Seas out in his ocean farms. value to around 25c. company’s accounts. It seems unlikely Hagen made his family fortune through that Hagen Stehr will have the money or his wild tuna harvest and today his desire to inject significant new funds. 250-tonne per annum quota nets him Speak to ordinary investors, aka mug around $7 million a year and would punters, and some still talk naively of fetch in excess of $25 million were he their next investment in the breeding to sell it. venture. The analysts, however, have But the stockbrokers, merchant banks by this time examined the whole project and their financial analysts take a in ruthless and intimate detail and are more hardline view of his financial and no doubt eagerly awaiting that 25 cent corporate position today. Cause of their spike so they can short the life out of it concern is his Clean Seas company once and for all. which listed on the ASX to finance his Conjecture is that Clean Seas will go to the share market again on the strength Despite the misfortunes of his land- grand land-breeding vision. of that to seek funding to perfect its breeding programme, Hagen Stehr Its publicly raised millions were consumed breeding programme. Financial experts is still a force to be reckoned with in more quickly and with far fewer results tend to not fancy his chances saying the Port Lincoln fishing hierarchy. With than promised. Now they say Clean Seas’ market faith in the whole project’s a wild catch quota of 250 tonnes of business model was flawed and the credibility is shot! southern bluefin he follows the leaders, technology of growing out the fingerlings Sam Sarin with a 2000-tonne quota and Despite all that, the fishing industry Makebe Diva owner Tony Santic with a problem yet to be solved. remains philosophically behind around 700 tonnes in partnership with Recent reports to the market show the project in recognition that, in a Smorgon interests. Selling price for catastrophic loss of millions of hatchlings constantly innovating industry, Hagen quotas hovers around $100,000 a kilo if and none reaching grow-out viability. Stehr has paid his dues and deserves you can find one for sale.

16 2010 AUSTRALIA Spring South Australia

Port of Sydney South Australia

operator, well able to turn any challenge about 18 kilos when caught and are into a triumph. grown out to twice that weight in six months. They can double their weight An interesting aside is his presence on again if the grow-out is extended to 18 the board of TasRail, surely the world’s months but health and problem risks most beleaguered railway and whose are higher. recent travails are so absorbing they would consume this story were we not “Research is also going into extending to leave them right here, right now. the catching area into deeper water. At present, the catcher fleet operates FreightLink and his railway are doing between 100 and 400 kilometres just fine and the potential is huge offshore and the catch is towed back Brian Jeffriess as more people turn their minds to to within about 15 kilometres off Port wondering how they can capitalise on “Without the railway at least two major Lincoln, in the Spencer Gulf, where it is that. NT mines might never have started,” he grown in 20-24 metres of water. says, “and their minerals would still be The Tram, light rail or the train – call “Pioneer work is being carried out in the ground, nor would many of the 14 it what you will but it runs every 10 in establishing grow-out farms 30 or 15 lesser mines currently operating minutes from just opposite Bikini Girls kilometres offshore where the water or preparing to do so. at Hindmarsh to Victoria Square in the is rougher and depths range from 40- heart of Adelaide and it’s fast, clean “Among new mines in various stages 45 metres but the fish growth rate is and free. It rips back into the CBD of progress that will add to traffic on substantially increased. the line are Arafura (ARU), Roper River in half the taxi time and no cost at Batavia (BT), MineMakers phosphate all and stops at the junction of King “A big new factor is the interest other (MAK) and Western Plains Resources’ William with Waymouth Street where countries are showing in ocean farming iron (WPG).” Brian Jeffries, awaits at the George tuna in Australian waters. We have restaurant. Next table at George’s is only 40 per cent of the world southern With Darwin’s economic future looking occupied by yet more examples of bluefin tuna quota with the other 60 brighter almost by the month, its Adelaide’s diverse population in the per cent being shared among Japan, prosperity will be reflected right down shape of an extraordinarily well-spoken Korea, Taiwan, New Zealand, the the rail line to Adelaide. Currently quartet, consisting of two thuggishly- Philippines and South Africa. being investigated are ways to use handsome gents in fashion jeans and the currently empty containers on expensive coats, one with a bronze- “Fish farming is only 15 years old FreightLink’s north-to-south runs and toned wristwatch no bigger than a while other kinds of farming have been some freight forwarders are working on five-cent piece and set into a matching around for thousands of years. We’re this with some produce already trickling bracelet. All exude an aura of deja-vu only touching the surface of what makes south out of Kununurra’s Ord River reminiscent of Sydney’s “miners” of the fish grow best. irrigation area. 1960s and 1980s. “We also have a new marketing “But,” Fullarton says, “the overwhelming The price of South Australian campaign in Japan that has been growth is expected from the many southern bluefin tuna has risen an extraordinary success. Southern opportunities offered by the under- in Japan from only $11 a kilo last bluefin were, until recently, known in explored mineral-rich area through year to $20 this year and Port Japan as indo maguro while northern which the railway runs.” Lincoln finished its wild harvest bluefin is known as hon maguro. only a few weeks ago hoping “Maguro” simply means tuna and “indo” Genesee and Wyoming’s purchase prices would soon return to the merely associated the brand with the gives it the right to operate FreightLink $28 levels of 2004 and 2005. Indian Ocean wheras “hon” carries until 2054. John Fullerton already has connotations of warmth and home in a new job which he’s keeping under This year’s total quota was 4015 tonnes Japanese. wraps but the whisper is that the – a 24 per cent reduction on previous Australian Rail Track Corporation has years, made because the ocean stock “Now we have rebranded our tuna him for a top appointment. Could be, seemed to need the cut. According to as Minami sodachi maguro meaning and he’d be a popular choice. At 57 Brian Jeffriess, CEO of the Australian Beautiful Southern Ocean Tuna and he’s a young, vigorous and disciplined Southern Bluefin Tuna Industry the success of that has been beyond Association, this appears, in retrospect, expectation.” to have been a mistake due to errors in calculating wild stock numbers. GM Holden’s Elizabeth plant moved from two shifts to only He says industry opinion is that while one last May because of the stock numbers are stronger than axing of the Pontiac brand and expected, no quota revisions are likely production of the Pontiac G8 – a before an international meeting in New Commodore-based performance Zealand in October 2011. car with left-hand drive – and the consequent loss of its export “Outlook for the South Australian fishing programme. industry over the next 10 – 15 years is very, very good,” Jeffries says. “New Production at the plant fell from 620 aquaculture and fishing methods will vehicles a day in 2008 to 310 this year increase productivity, the wild tuna when production focussed mainly on stock is recovering. Commodores for the domestic market. “Next real improvement is expected Andrea Matthews, corporate affairs The Cruze: Currently manufactured in Korea, the to come from experiments in farming manager GM Holden in SA, tells how Australian model goes on sale here in February bigger tuna. Currently young fish weigh the company devised a rescue strategy

18 2010 AUSTRALIA Spring South Australia South Australia

“We ran a hardship currently imported from Korea and recognition program will be built here in petrol and diesel for anyone who models. Its arrival will give the plant two wanted to leave the models in the world’s Top Ten – the company. People given Caprice and the Cruze. a termination package went off to find new “The first SA-made Cruze will appear full-time work. We also in the middle of the first quarter of ran a training scheme 2011. Prices are yet to be announced for part-time workers so but its business plan is built on they could get security domestic Australian consumption. It’s licences, bar work a global GM car that has just gone into certificates and a few production in the USA so we need to courses for people who compete with ourselves and exports will wanted to be gardeners. depend on being able to do that.” “The company has now In 2012 the Elizabeth plant will returned to profitability, be including the Holden Volt, a spirits are rising again petrol:electric hybrid that can run and the second shift purely on its electric power. It’s being resumes on Monday, marketed as an extended range car. November 15. There will be no large change In the more immediate future, local in total employees with manufacture of the new VE Series 2 The head of Holden! Way back in the 20s the carriage works numbers expected to Commodore is being finalised and will of Holden & Frost in Adelaide had a lifesize wooden statue of rise from 2300 to 2330. begin to appear in a few weeks. 85 per a horse proudly displayed at its front gate. Its head is on show cent of the production will run on biofuel today in the foyer of Holden’s Elizabeth works. “Production in the first and Holden has done a deal with Caltex half of next year is to roll out ethanol fuel pumps. expected to increase to return to profitability: “The plan was with the introduction of the Cruze model “We’re doing a lot of things to provide that people would work alternate weeks, and new sales for the Statesman, different options,” Andrea says. “They being paid their full salary for the week Caprice and utes.” include a V6 direct fuel injection they worked and 50 per cent of it for model and Active FM – Active Fuel the weeks they didn’t work. Average “Trigger for restoration of the second Management – on V8 cars which allows salary at the plant is around the shift is getting ready for the Cruze them to switch to four-cylinder running coming into production here. It is $55,000 mark. when not under load.

Olympic Dam snapshots

Olympic Dam is 570km north of Adelaide and the A new 10,000-person accommodation village will world’s largest uranium deposit and fourth-largest be built near the mine and Roxby Downs township copper lode. Present underground operations will be expanded to cope with Olympic Dam’s 8000 produce copper (cathodes), gold and silver (ingots) permanent workers and a projected 13,000 flow-on and uranium (yellowcake). Proposed expansion jobs. would occur over 11 years and create a new open With a present output of one million tonnes per pit alongside the existing underground mine. A annum, the expanded project will need one train minimum 40+ year project life is envisaged. Its a day to Darwin and two to Port Adelaide. Road infrastructure requirements include: traffic will include 11,500 over-dimensional loads A desalination plant near Port Bonython, an between now and 2020 and require 30 passing electricity line from Pt Augusta or a gas pipe bays to reduce delays. from Moomba, a 105km rail to connect with the The mine currently contributes $1.7b pa to South Adelaide-Darwin line, a new 24-hour B737-800 and Australia’s economy. At full operating capacity, the A320 capable airport, a landing facility near Port expanded mine is expected to contribute $6.9b pa. Augusta for barged equipment, with dedicated Over the past three years SA Government royalties access to a pre-assembly facility, additional bulk have averaged $60m and a four- fold increase is unloader and storage at Port Adelaide, and new expected; the benefit to the Northern Territory is conveyors, loader, and storage at Darwin. estimated at $936m over the next 30 years.

20 2010 AUSTRALIA Spring South Australia

“We also have strong hopes for a attached. With his 82nd birthday upon vehicle registration standard, uniform Chevrolet model based on the Caprice him, Captain Doug - people forget he is trade certification, a national safety being taken up by police departments a master mariner by profession - shows standard that applies to marine, rail and cross the USA. It has met all the tests not the least sign of giving in to his age. road. for the rigours of US police cars and As Bette Davis said “old age ain’t orders are expected to come in by for sissies!” “In South Australia we will need to face October. With a potential police car a mining sector expanding at a rate we Neil Murphy, general manager market of 70,000 units a year it would have never experienced before. We of the South Australian Freight be a shot in the arm for us to return to have gone from having four mines to the US market.” Council, sums up this broadbrush overview of his state’s activities having 12 in the past four or five years. The plant currently makes 42 models by pointing to two issues: Another 20 are on their way and behind and variants which makes one wonder them about 70 at one stage or another First is the need to get the Olympic what they know that Henry Ford didn’t of their realisation. Dam EIS revised and approved as when he gave customers his famous quickly as possible. Expectations had choice of colours – any colour you like “All that new and emerging industry been that it would be approved some so long as it’s black!! needs an efficient pathway to its time this year. Instead, it has been sent markets and, as yet, we have not built back to BHP Billiton for redrafting with Talking Adelaide people again: The the required infrastructure nor legislated shipping industry doesn’t really seem some 400 questions to be answered. to enable it. to have any national treasures although That will take some time. Douglas Bourne-Jones, Shipping Second is his view that the biggest “To run a train from, for example, Australia’s secretary in South Australia, single achievement that Australia should Sydney to Perth requires nine approvals would be able to lay some claim to the be working towards today is national and the diversity of inspections, title. He held a dinner the other night at harmonisation of all parts of our lives regulations and standards needed to his favourite eating house – Jasmin on but particularly of industry. create the new South Australia defies Hindmarsh Square. No wonder it’s his favourite … Amrik Singh, the proprietor, “We need to rearrange almost imagination. Australians need to get has a special chair with Doug’s name everything so that one set of rules together with true resolve to fix it, to on it. Talk about PR! The meal was of rather than nine apply to everything achieve harmonisation of all our ports, course delicious – first Indian food for we do,‘’ he says. That means a single all our people, all our endeavours.” a decade with no hellfire or heartburn Australian driving licence, a single

21 Port Costs Summary of selected port tariff increases

We include below a table of increases This is because of the difficulties that Unless every effort is made to contain over the last three years which, whilst not were experienced, particularly in 2009 such costs commensurate with the need with the challenges posed by the substantive with some exceptions, many to invest in new long term infrastructure, global financial crisis and the massive are over CPI and continue to be of great cost reduction exercises that our Australia’s international trade concern to members. members had to engage in to survive. competitiveness will be put at risk.

Port Service Increase Effective Previous Effective Previous Effective Harbour Dues ~ ~ 3.70% 01-Jul-09 ~ ~ Abbot Point Harbour Dues Coal ~ ~ 5.00% 01-Jul-09 ~ ~ Pilotage 10.00% 01-Oct-10 10.00% 01-Apr-10 10.50% 01-Nov-07 Navigation Fee 7.98% 01-Jul-10 4.30% 01-Jul-09 ~ ~ Berth Hire 8.04% 01-Jul-10 2.75% 01-Jul-09 ~ ~ Albany Infrastructure Fee 7.94% 01-Jul-10 4.30% 01-Jul-10 ~ ~ Pilotage 7.98% 01-Jul-10 ~ ~ ~ ~ All rates (average increase) ~ ~ 6.00% 01-Dec-09 ~ ~ Patricks Infrastructure Charge (perTEU) $17.75 01-Oct-10 New Charge Pilotage 10.00% 01-Oct-10 10.00% 01-Apr-10 10.50% 01-Nov-07 Brisbane Towage ~ ~ 5.00% 15-Jun-09 3.50% 01-May-08 Port Infrastructure Berths 1, 2, 3 & 5 10.00% 01-Jul-10 ~ ~ 6.00% 01-Jul-08 Port Infrastructure Berths 4 & 6 6.50% 01-Jul-10 ~ ~ 6.14% 01-Jul-08 Berth 8 Infrastructure charge 10.60% 01-Jul-10 9.80% 01-Jul-09 5.99% 01-Jul-08 Berth Hire 37.10% 01-Jul-10 ~ ~ 6.00% 01-Jul-08 Pilotage Service 24.60% 01-Jul-10 ~ ~ 19.20% 01-Jul-08 Bunbury Fresh water supply charge 22.20% 01-Jul-10 ~ ~ 6.00% 01-Jul-08 Navigational service 5.30% 01-Jul-10 ~ ~ 37.70% 01-Jul-08 Mooring 4.00% 01-Jul-10 ~ ~ ~ ~ Pilotage 10.00% 01-Oct-10 10.00% 01-Apr-10 10.50% 01-Nov-07 Bundaberg Towage (Approved by Gladstone Ports) 120.00% 01-Jul-10 10.00% 15-Jun-09 ~ ~ Pilotage 10.00% 01-Oct-10 10.00% 01-Apr-10 10.50% 01-Nov-07 Cairns Towage 4.00% 01-Jul-10 3.70% 15-Jun-09 Water Charges 39.23% 01-Jul-10 16.85% 01-Jul-09 ~ ~ Pilotage Exemption 8.64% 01-Jul-10 22.88% 01-Jul-09 ~ ~ Layup Fee ~ ~ 41.00% 01-Jul-09 ~ ~ Dampier Berth Hire 20.00% 01-Jul-10 31.58% 01-Jul-09 ~ ~ Wharfage 25.93% 01-Jul-10 45.24% 01-Jul-09 ~ ~ Port Dues 9.90% 01-Jul-10 78.18% 01-Jul-09 ~ ~ Minimum Port Dues 19.50% 01-Jul-10 27.97% 01-Jul-09 ~ ~ Darwin All rates 3.50% 01-Jul-10 2.90% 01-Jul-09 ~ ~ Cargo Service Charge 2.60% 01-Jul-10 3.30% 01-Jul-09 10.26% 01-Jul-08 Harbour Service Charge 2.60% 01-Jul-10 2.30% 01-Jul-09 4.50% 01-Jul-08 Flinders Navigation Charges 2.60% 01-Jul-10 2.30% 01-Jul-09 4.50% 01-Jul-08 Pilotage 3.50% 01-Jul-10 2.30% 01-Jul-09 10.00% 01-Jul-08 Wharfage & Berth Hire 2.50% 01-Jul-10 3.00% 01-Jul-09 5.50% 01-Jul-08 Tonnage 5.50% 01-Jan-10 3.30% 01-Jan-09 5.50% 01-Jul-08 Fremantle Pilotage 7.50% 01-Jul-10 7.50% 01-Jul-09 7.50% 01-Jul-08 Towage 5.74% 01-Jul-10 ~ ~ ~ ~ Port Improvement Fee per TEU ~ ~ $9.50 01-Jul-09 New Charge All Vessel Charges 2.00% avg 01-Jul-10 ~ ~ 4.50% 1st Jul 08 Geraldton Berths Four and Five 5.00% 01-Jul-10 ~ ~ 4.50% 1st Jul 08

22 2010 AUSTRALIA Spring Port Costs

Port Service Increase Effective Previous Effective Previous Effective Harbour Dues 3.95% avg 01-Jul-10 3.06% avg 01-Jul-09 4.82% 1st Jul 08 Port Security 3.85% avg 01-Jul-10 3.17% avg 01-Jul-09 4.95% 1st Jul 08 Tonnage/Wharfage 3.91% avg 01-Jul-10 3.16% avg 01-Jul-09 ~ ~ Refuse Removal 6.79% avg 01-Jul-10 5.00% 01-Jul-09 4.79% 1st Jul 08 Gladstone Mooring 6.82% 01-Jul-10 5.00% 01-Jul-09 4.81% 1st Jul 08 Pilotage 10.00% 01-Oct-10 10.00% 01-Apr-10 10.50% 01-Nov-07 Towage ~ ~ 6.00% 01-Oct-09 ~ 1st Jul 08 Harbour Dues 3.00% avg 01-May-10 ~ 01-Jul-09 8.29% 1st Jul 08 Tonnage Dues 3.19% avg 01-May-10 ~ 01-Jul-09 8.46% 1st Jul 08 Mooring dues 3.13% 01-May-10 ~ 01-Jul-09 8.49% 1st Jul 08 Towage 4.00% 01-Jul-10 4.50% 15-Jun-09 ~ ~ Service & Security Charges 3.13% avg 01-May-10 ~ 01-Jul-09 8.44% 1st Jul 08 Pilotage 10.00% 01-Oct-10 10.00% 01-Apr-10 10.50% 01-Nov-07 Pilotage all rates 5.58% 01-Jul-10 ~ ~ 7.50% 11-Aug-08 Mackay Bulk Liquid Cargo 19.97% avg 01-Jul-10 15.00% 01-Jul-09 5.30% avg 01-Jul-08 Full Containers 5.49% 01-Jul-10 2.50% 01-Jul-09 ~ ~ Empty Containers 4.35% 01-Jul-10 2.20% 01-Jul-09 ~ ~ Infrastructure Levy Channel Deepening 2.48% 01-Jul-10 2.50% 01-Jul-09 $31.50 New Charge Non Containerised / General Cargo 7.46% 01-Jul-10 5.37% avg 01-Jul-09 5.00% avg 01-Jul-08 Motor Vehicles 19.37% 01-Jul-10 7.38% avg 01-Jul-09 5.20% 01-Jul-08 Dry Bulk 7.85% 01-Jul-10 6.14% avg 01-Jul-09 3.50% avg 01-Jul-08 Channel Fees 3.93% avg 01-Jul-10 7.07% avg 01-Jul-09 5.00% 01-Apr-08 Berth Hire 4.12% avg 01-Jul-10 6.69% avg 01-Jul-09 3.98% 01-Jul-08 Melbourne Wharf Access 4.55% 01-Jul-10 76.00% 01-Jul-09 4.00% 01-Jul-08 Area Hire 4.00% 01-Jul-10 6.89% avg 01-Jul-09 4.19% 01-Jul-08 Towage 5.00% 01-Jul-10 5.00% 15-Jun-09 ~ ~ Security 3.96% avg 01-Jul-10 -5.50% avg 01-Jul-09 ~ ~ Towage 6.40% 01-Jul-10 6.50% 15-Jun-09 4.80% 1-May-08 Newcastle Lines & Mooring Boats 4.00% 01-Jul-10 6.50% 15-Jun-09 4.50% 1-May-08 Towage 5.70% 01-Jul-10 ~ ~ ~ ~ Port Adelaide Wharfage 5.03% avg 01-Jul-10 4.50% 01-Jul-09 4.40% 01-Jul-08 Tonnage, Berth Hire 5.00% avg 01-Jul-10 4.50% 01-Jul-09 6.20% 01-Jul-08 Pilotage and Mooring / Unmooring 4.92% avg 01-Jul-10 5.00% 01-Jul-09 6.00% 01-Jul-08 Towage 4.90% avg 01-Jul-10 5.00% 01-Jul-09 4.00% 01-Jul-08 Portland PBLIS per TEU $10.00 01-Jul-10 New Charge Pilotage 2.18% 01-Jul-10 10.00% 01-Apr-10 ~ ~ Wharfage 2.18% 01-Jul-10 6.13% avg 01-Jul-09 ~ ~ Nav. Charge (ex pax, bulk, liquid & gas) 2.18% 01-Jul-10 6.15% 01-Jul-09 ~ ~ Navigation: Pax, bulk, liquid & gas 2.18% 01-Jul-10 5.45% 01-Jul-09 ~ ~ Port Botany & Environmental Charge 2.52% 01-Jul-10 6.00% 01-Jul-09 ~ ~ Sydney Towage 5.00% 01-Jul-10 5.00% 15-Jun-09 ~ ~ Harbour Lines and Mooring 5.00% 01-Jul-10 6.00% 15-Jun-09 ~ ~ Security Charge per TEU Revised Triennially $0.10 01-Jul-09 ~ ~ Port Esperance Security charge per vessel GRT 20.00% 01-Jul-10 ~ ~ ~ ~ Pilotage 2.50% 01-Jul-10 5.01% avg 01-Jul-09 ~ ~ Tonnage 2.50% 01-Jul-10 10.00% 01-Jul-09 10.00% 01-Jul-08 Port Hedland Wharfage 2.50% 01-Jul-10 ~ ~ ~ ~ Storage 5.00% 01-Jul-10 ~ ~ ~ ~ Utilities 11.00% 01-Jul-10 9.00% 01-Jul-09 ~ ~ All Charges 5.00% 01-Oct-10 ~ ~ 3.00% 01-Dec-08 Port Kembla Coal Terminal & BlueScope Steel berths 73.83% 01-Oct-10 ~ ~ 3.00% 01-Dec-08 Cargo 10.00% 01-Jul-10 5.00% 01-Jul-09 ~ ~ Berthage 10.00% 01-Jul-10 25.00% 01-Jul-09 10% 01-Jul-08 Townsville Harbour Dues ~ ~ ~ ~ 10% 01-Jul-08 Pilotage 10.00% 01-Oct-10 10.00% 01-Apr-10 10.50% 01-Nov-07

Spring 2010 23 AUSTRALIA Port Costs International port cost comparison project We have sought to compare costs metres LOA with an import exchange in Australia’s main container ports of 1000 TEUs, 500 TEUs export and Port Total In AUD paid by the shipowner with a number 200 TEUs export of empty. Whilst it Hong Kong $7,042.48 of major international ports this year was understood that a vessel of this using publicly available tariffs. Busan $10,936.48 particular size and specification may 22 ports in total were included and the China Ports $11,621.69 costs included pilotage, towage and not call at all of these ports, it was linesman costs including wharfage on still useful for a direct comparison. Singapore $13,566.93 full and empty containers but excluded Some ports such as New York do Fremantle $20,061.88 charges such as stevedoring and have a public tariff (which we have miscellaneous utility charges. The used in this exercise) but it is rarely Los Angeles $20,181.10 public tariffs in the Japanese and used with the actual tariff being Brisbane $21,692.76 Chinese ports surveyed were very based on the frequency of calls and similar so for the purposes of the Wellington $24,998.38 comparison they have been grouped TEU volumes through the port per Melbourne $30,335.63 together. The Japanese ports were individual shipping line or connection. Yokohama, Osaka and Nagoya Nevertheless we believe this project to Adelaide $31,491.93 and the Chinese ports were Tianjin, be a useful exercise and we have tried Sydney $35,938.63 Shenzhen, Guangzhou, Shanghai and to compare “apples with apples”. Ningbo. Exchange rates were those New York $37,007.10 applicable as at 9 August, 2010. Details of the exchange rates used, Auckland $40,954.01 more details regarding the average A hypothetical sized vessel was used Rotterdam $49,953.98 but one considered reasonably typical vessel and details of the individual in the Australian trades. The average cost categories used can be viewed Japan Ports $50,111.75 ship had a TEU capacity of 4500 and on the Shipping Australia website, Hamburg $55,728.62 a GRT of 40,700 tonnes, being 258 www.shippingaustralia.com.au.

24 Spring 2010 Shipping news_advert.pdf 1 13/07/10 6:51 AM

Port Costs

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Electronic Charting and Navigation Learning from the experiences of others Mr Mike Prince, Director Charting Services, Australian Hydrographic Service (www.hydro.gov.au)

he International experience. Despite this, at 4 am In interviews with the on the 3rd of August 2008 ‘Asolare’ Inquiry some PWC crew Maritime struck Moore Reef in the Coral Sea. commented that they had Organization has The yacht, valued at $1.7M, was a T total loss. However, the key point was previously observed errors now mandated the assertions by the skipper that on the chart plotter. An Electronic Chart there was no reef shown on his chart. example was given that on Unfortunately, this was because the entering Sydney Harbour the Display and Information relevant charts had been omitted from all Systems and use of of the derived charts supplier’s regional plotter indicated the boat Electronic Navigational packs, despite being shown on four had crossed South Reef different official charts. Additionally, the and the Sow and Pigs Reef Charts for SOLAS AHS has also received several reports of when the yacht had clearly vessels, with a timeline dangers, and even islands, missing off been in safe water. A similar commercially derived charts. for introduction example was provided stretching from 2012 to Chart Datums. during the Hamilton Island race week. 2018. Beyond SOLAS, Secondly, there is the issue of chart Flinders Islet Yacht Race requirements for datums, which in simple terms these days, distills down to a question of Inquiry, January 2010 commercial vessels in whether electronic charts are directly Australia have been compatible with the position from a Keep charts up to date. vessel’s GPS. All manufacturers of Next, there is the issue of using up to addressed through the commercially derived electronic charts date charts. Many mariners simply do claim they have been shifted to WGS84, 2008 release of the not realize that the features on charts the mathematical model of the Earth change, or the significance of some navigation equipment used by GPS. section of the National However, as reliance upon Standards for GPS has increased, Australian Commercial Vessels. Hydrographic Service (AHS) staff have noted a parallel increase in the number of However, many of these vessels requests to explain why GPS continue to place excessive reliance had the mariner in the wrong upon commercially recompiled electronic position. While it is possible charts under the guise of “aid to that an individual chart could navigation”. Mariners therefore need have a datum problem, it to be aware of the risks and mitigating is more likely that the GPS strategies necessary to overcome the has been set up incorrectly limitations inherent in these commercially or its output altered. It is derived charts. therefore important to check A good way to do this is to look at a your position by independent number of recent incidents affecting means, both before getting both recreational and SOLAS vessels underway and at least following – despite the obvious difference in each change of chart. The size between most commercial and destruction of the maxi-racing recreational vessels, the lessons are yacht ‘PWC Shockwave’ off highly relevant. Wollongong at 2:30 am on the Chart content. 10th of October 2009, with the tragic loss of two lives, resulted Take for example the ‘Asolare’. The in this issue being highlighted ‘Asolare’ was a new cruiser-racer by the Cruising Yacht Club of participating in an around the world Australia, but is applicable to regatta. The skipper had 50 years all mariners. Based upon the preliminary report from vessels in Australian waters would have the Australian Transport Safety Bureau, been prevented through use of ECDIS it’s clear that a number of factors and ENCs, if that technology had been contributed. First and foremost, fatigue. available at the time. Significantly, Secondly, the tracks and waypoints that technology is now available, with entered into the GPS (in black) did not mandatory use commencing in 2012. match those actually being followed on the paper chart (in red), so waypoint Lessons. alerts were irrelevant. Finally, a very poor fixing interval on the paper chart The lessons here are simple and should allowed the ship to not only overshoot be applicable to any mariner with a its planned course alteration, but to need to place their faith in a chart. actually steam off the northern edge of the chart in use and therefore not see Firstly, use a reliable chart, don’t Douglas Shoal ahead. just carry it and ignore it in favour of unofficial commercially derived charts. However, even improper While the latter have their place for use of ECDIS and certain uses, critical navigation safety Electronic Navigation isn’t one of them. Charts (ENCs), let alone Next, keep charts up to date. While proper use, would have the example here covers a small avoided this accident. recreational vessel, at least one bulk Firstly, this is because ENCs join carrier has sunk in Australian waters as together seamlessly, avoiding the a direct result of failing to apply Notices changes. However, if faith is to be problem of forgetting to change charts. to Mariners. If a mariner is going to placed in a chart, that faith is mistaken Secondly, even if the ship deviated, as place their faith in a chart, whatever if it is not up to date. This was the it did, from its electronically planned form it is in, that faith must not be undoing of a seven metre ‘time-share’ track, the anti-grounding and safety misplaced. launch returning to the Brisbane River depth functions inherent in ECDIS and Understand datums. All official ENCs at night on 13 September 2007. ENCs would have provided at least a typical 15 minutes or more of warning are referenced to WGS84, while 95% Before 2003 the approaches to the before grounding. of Australia’s paper chart series are Brisbane River were quite open, with also directly compatible with GPS. The In 2007 the AHS undertook a study of remainder will be replaced during 2011. smaller vessels able to pass over shoal all maritime incidents investigated by Until then, look for GPS compatibility areas on the either side of the dredged the Australian Transport Safety Bureau in the upper left and lower right channel. In 2003 the AHS and Marine over the previous 25 years. Based Safety Queensland issued Notice to upon this study the AHS determined corners. All affected charts also carry Mariners warnings of reclamation work that 50% of all groundings by SOLAS instructions for shifting from WGS84 to that chart’s datum. Unless there are in preparation for a new commercial very strong reasons, keep the GPS port terminal. On completion of building receiver set on its default of WGS84 no the sea wall in 2004, the official chart matter what chart is in use. was updated by a further Notice to Mariners and, in due course some two Finally, strongly consider shifting to years later, the commercially derived official ENCs and their associated chart was also updated. However, update service well ahead of any these updates were never loaded official requirement. Australia’s ENCs into the boat’s navigation system. are distributed via the International Consequently, when a fisherman Centre for ENCs (ic-enc.org), and planned his evening route home he are most commonly accessed via the world-wide Admiralty Vector Chart mistakenly believed his planned route Service (AVCS). Noting the potential was safe, unfortunately with fatal for ECDIS and ENCs to assist in consequences. preventing 50% of groundings, even Don’t steam off the edge of if avoiding a grounding saves just one day of a charter, the costs of installing the world. an ECDIS and adopting ENCs will have Returning to an incident affecting been justified. a larger commercial vessel, the For more information, including free grounding of the ‘Shen Neng-1’ in Fact Sheets, please visit the Australian Australia’s Great Barrier Reef in April Hydrographic Service website at 2010 is worth reviewing. www.hydro.gov.au. Navigation New $6m simulator gives pilots the latest training By a special correspondent

here is no doubt that simulator that would address their specialised tug bridge with 360 degree needs, the pilots agreed it should be visibility and the flexibility to use different Australia’s pilots have based in Queensland. propulsion systems including the new earned themselves an rotor tug arrangements. Importantly, all In the course of the 10 years since T three bridges can be integrated for a enviable international the inception of the idea, a number of single exercise or operated individually reputation as leaders in operational and funding options have as required. The facility will also include been considered but it was not until the on-going development two part-task bridges for assisted vessel Maritime Safety Queensland (MSQ) assignments and instrument training. All and modernisation of their committed to back the project that it of the training rooms at the Centre will be profession. They have started to gather momentum. fully equipped with play back functions been the innovators of Following exhaustive research of and multi screen adapters for all training pilotage safety the capabilities and limitations of needs. established simulator facilities and an management systems and SmarTship Australia will differentiate analysis of the present and future needs itself from other training facilities training programs that of pilots, MSQ compiled a very detailed around the world by focussing on underpin a new pilotage description of the facility it wanted Human Factors-based training. It will to establish and went to international paradigm - one to which be a Centre of Excellence for research tender to choose a supplier. the rest of the world is and development in Pilotage Safety now starting The tender attracted submissions of Management Systems and build on an exceptionally high standard. The the substantial body of knowledge to aspire. process involved a number of meetings and experience that has already been with the short-listed companies and developed in Australia. Inherent to their success has been the contract was eventually awarded Ravi Nijjer, who has been conducting the use of high level simulation to Force Technology which is a the Advanced Marine Pilots Courses which, frustratingly, was generally multinational, Danish-based company and Bridge Resource Management only available overseas and although with a huge reputation for expertise in programs in Australia said, “A proper satisfying an immediate need, it was model testing, computations, simulator simulator has been the missing link in sclearly ma situation that a did not r suit the t sbased h training iand pc p based simulators the training packages we have been profession’s long term interests. As far for the maritime sector. back as 10 years ago, pilots started to developing during the last 15 years. contemplateA centre of the excellence establishment in advanced of their humanThe simulator, factors which based will cost $6 million, We have been waiting for this for a long ownmaritime simulator training at home. supported by full missionwill be a world high class fidelity high fidelity time and this is a huge step forward. its simulation. integrated package and incorporate fantastic news, not only for Australian Of Australia’s roughly 300 pilots, 170 are a number of features that will provide pilots but for pilots the world over.” Mr based in Queensland. It is little wonder For more information go to www.smartshipaustralia.com.au.pilots with unparalleled realism. The new Nijjer said he was looking forward to therefore, that when facility, which will be called “SmarTship conducting all future courses at the the decision Australia”, will include two full- SmarTship Australia facility. was mission bridges, one of which Pilots have always argued that without made to will have bridge wings with the appropriate facilitators, a simulator’s build a full 190 degree visibility. utility for high-level training is limited. The bridge equipment SmarTship Australia is therefore very will be Nacos- proud of the fact that, in addition to 5th Generation integrated Navigation Ravi Nijjer, it has been able to secure and Command internationally renowned simulator training Systems which is the professionals to facilitate the courses that equipment currently will be conducted at the Centre. being fitted to the SmarTship Australia will be located at latest generation cruise the Brisbane airport business precinct. ships. This location was chosen because it Also included in the already has an education and training package is a focus, albeit for the airline industry, as full-mission well as connection to advanced fibre optic data and the airport power grids. Proximity to the airport, Brisbane’s TransLink public transport network, hotels and shops are additional Maritime Safety Queensland — safer, cleaner seas. advantages to this location. It is expected that SmarTship Australia will be opening its doors for business in March 2011.

28 2010 AUSTRALIA Spring Navigation New $6m simulator gives pilots the latest training By a special correspondent NEWS

Maritime supply chain reform – Do we need another round? By Peter Blanchard l chief executive officer

Over the past few months while the Government has set a target of 30 The price increases and congestion are country has been consumed with the per cent. reminders of the dark days of the 1980s comings and goings in Canberra, prior to a decade of reform. Clearly, we Over the past several months, the Australia’s trade performance has made need to re-focus our efforts to ensure front page headlines and news. This industry has been beset by congestion, that we have the appropriate structures, performance underlines the strength of especially prominent in Melbourne, regulations and competitive forces in the Australian economy and reinforces with the return of empty containers, but place to ensure that we can continue the old adage that trade and economic also affecting Sydney, Brisbane and to maintain Australia’s international growth go hand in hand. Fremantle. competitiveness. While we, as a country, have performed While these events were taking place, The Productivity Commission is admirably in recent times, it is to the prices have continued to increase suggested as the appropriate body future that senior industry players look with port charges increasing in some to conduct such a review. The to ensure that this stellar performance cases by double the inflation rate, Commission has forged a reputation can continue. infrastructure service charges being for openness, independence and imposed by container park operators in high quality research that focuses Already projects for the expansion different locations, wharfage increases on economy wide issues, not narrow of Port Botany and Port Brisbane (Port Botany), and proposed new sectional interests. Such a review are underway with the entrance of charges for road transport (Melbourne). would also fit within the COAG Review Hutchison Port Holdings as the third Council’s remit on port reform. container terminal operator in those Overlaying this is the proposed ports. Melbourne is undertaking an National Port Strategy being drafted by Secretary to retire – evaluation of its port needs with a Infrastructure Australia. After 21 years review commissioned by the Victorian It is some years since the Federal Government on the proposed re- Government has reviewed the Tradegate’s Company Secretary and development of Webb Dock. operations of the waterfront or Accountant, Catherine Wright, is to retire later this year after 21 years’ loyal All State Governments are examining maritime industry supply chain as a service. Catherine joined Tradegate land-side access to their ports and whole. Given the passage of time, shortly after it was incorporated in there appears to have emerged a the implementation of a new Customs 1989 to take on a range of secretarial cacophony of support for greater system, sustained growth in demand duties – including bookkeeping and use of rail with the NSW Government and the economic meltdown in 2008-09, accounting. setting a target of 40 per cent by it is appropriate that an industry–wide 2011 – it has recently dropped to review of the non-bulk maritime supply So successfully did Catherine carry just 18 per cent; and the Victorian chain should be undertaken. out her duties, she was promoted to

30 20102010 AUSTRALIA AutumnSpring NEWS

Company Secretary with additional (ECPs) to implement a booking system responsibilities in the early 1990s. similar to the vehicle booking systems implemented by the container terminal While successfully managing operators. APEC Supply Tradegate’s accounts, Catherine found time to represent NSW and Australia Within our industry it is interesting that Chain Connectivity in Bridge as a member of a number of a number of sectors of the industry run Framework successful women’s teams throughout booking systems including shipping the 1990s and early 2000s. lines, stevedores, customs, pilots, – Identified Responding to questions about her tug operators and port authorities. Chokepoints memories of Tradegate, Catherine Tradegate has been informed by some of its customers that importers also run 1. Lack of transparency/ nominated the implementation of awareness of full COMPILE on Tradegate’s network in the booking systems as to when containers can be dropped off at their premises. scope of regulatory early 1990s, the ELECTRA Project when issues affecting the Tradegate community developed Outside our industry booking systems logistics; lack of all the necessary EDI messages for the abound in everyday life. The perfect awareness and industry and the development of the example is the booking appointment for coordination among Bureau services for SMEs. a doctor. government agencies Catherine’s best memories are of on policies affecting Leaving aside the business process the larger than life people she has logistics sector; change that will be required by ECPs, worked with at Tradegate including absence of single transport operators and shipping lines, inaugural CEO, Andrew Robertson, contact point or Event Manager extraordinaire Nadia the logic of a booking system for ECPs champion agency on Douglass, dynamic guru Julian Gilbert- is irrefutable. If transport operators logistics matters; wish to avoid queues, the only way this Rolfe and Karl Zlotkowski, Tradegate’s 2. Inefficient or Standards Manager for many years. can occur is for the transport operator to have some forward knowledge of the inadequate Mrs Wright plans to take a holiday and activity at the ECP for the time period infrastructure; lack of is considering a move interstate once in question. Without this, truck queues cross border physical her 16 year old son concludes his will not disappear. This requires the linkages (e.g. roads, bridges). schooling. transport operator to forward book the time of his/her arrival. 3. Lack of capacity of local/regional logistics The certainty of a booking assists the sub-providers. ECP to better schedule resources and assists the transport operator to better 4. Inefficient clearance plan its asset allocations. Shipping lines of goods at the border; also benefit by improved information lack of coordination for the availability of containers for among border export customers and the re-location of agencies, especially empties. relating to clearance of regulated goods ‘at The benefits of booking systems were the border’. identified by the industry itself as far back as 1988 when the National 5. Burdensome Communications Working Party on Cargo procedures Movements (NCWP) – the body that for customs recommended the formation of Tradegate, documentation and Catherine Wright identified vehicle booking systems at other procedures container terminals and depots as one (including for On behalf of all Tradegate Directors, preferential trade). members and employees I wish of the valuable products that could be of Catherine a long and happy retirement benefit to industry efficiency. 6. Underdeveloped multi-modal transport and thank her sincerely for her The implementation of any booking system capabilities; dedicated years of service. should not be prejudiced by the industry’s inefficient air, land, experience of the systems implemented and multimodal The need for a container by the container terminal operators. booking and visibility connectivity. system A successful booking system will 7. Variations in cross- require co-operation between ECPs, border standards Over the past few months there have transport operators and shipping lines and regulations for been reports of congestion and to ensure that the benefits of such a movements of goods, delays with the de-hire and pick up of system flow through the maritime supply services and business empty containers at container parks chain. These benefits will only occur if travellers. particularly in Melbourne, Brisbane and the three parties ensure that necessary Fremantle. information and data is exchanged 8. Lack of regional to minimise delays, unnecessary cross-border customs- As a result of these delays, there paperwork and re-keying. All of transit arrangements. are a number of proposals within the industry for empty container parks this is available today using current technology.

Spring 2010 31 AUSTRALIA NEWS Feature By The implementation of change will not Tradegate’s CEO, Peter Blanchard, government involved in the supply be welcomed by everyone. However, attended the Sendai Symposium chain. Also, Australia, like some other change, along with death and taxes, is following an invitation from the APEC member economies, has the one of the certainties of life. Department of Foreign Affairs and advantage of being an island and Trade. Following is an edited extract of hence does not have to concern itself APEC Considers Supply his presentation to the Symposium. about road and rail cross border issues. Chain Connectivity My remarks today differ from my fellow A number of attributes The Committee on Trade and speakers in two respects. Firstly, I have emerge from this mud Investment (CTI), one of the key taken a predominantly maritime view of the world, as in my experience in map of the supply chain. Committees within APEC, has launched As can be seen, no one a new initiative for a Supply Chain Australia, the air freight industry is much Framework. One of the activities being better co-ordinated and seamless than entity controls the supply pursued by the CTI is the conduct of that of the maritime supply chain. chain. An old adage of a number of Symposiums on Supply Secondly, I have taken a whole of management is “if you Chain Connectivity. industry approach to the issues can’t measure it, you can’t The first such Symposium was held in before us – namely chokepoints in control it”. the supply chain. My reason for this Singapore in May 2009. The Singapore I suggest to you that if any design Symposium identified 8 chokepoints in is that Tradegate represents a broad cross section of users from importers engineer, process analyst, or process the existing supply-chain networks (See engineer had the temerity to suggest box on page 31). A further Symposium to exporters as well as the service providers supporting those cargo that mud map as a good model to was held in Sendai, Japan from 19- interests. use, he or she would quickly either be 20 September 2010 and built on the fired or sent to the appropriate medical outcomes of the Singapore Symposium The excellent work already undertaken facility for obviously needed attention! through the further development of the by APEC on supply chain connectivity identified specific actions within the identified a number of chokepoints I would suggest to you that this supply eight identified Action Plans. – 8 in number – with possible action chain has too many potential points of items for each chokepoint. One of the failure. And it fails every day. It fails Many of these Action Plans revolve items identified is to develop a better because of the large number of players around the provision of information in understanding of the various services in the marketplace, many of whom are a timely fashion and include Single small businesses and who do not have involved in the logistics industry. Windows, Supply Chain Visibility the market power to look at long term Systems, cross-border information The Port of Melbourne supply chain outcomes, or outcomes that would be sharing networks and the use of mud map is not complete as it does beneficial to their businesses. That is standards. not include many of the agencies of they are price takers in the marketplace.

20102010 AUSTRALIA AutumnSpring Feature NEWS By It is impossible for any one person or Also within the maritime industry, in In order for such a flow to be successful entity to co-ordinate the whole of this marked contrast to the air transport we need good quality, accurate and supply chain. The appointment of a so- industry, we still maintain a batch timely information, preferably well in called “supply chain tzar” is fraught with processing mentality, as opposed to a advance – another key component risk. It may be possible to undertake flow mentality. identified in our chokepoints. such a task with a particular element of the supply chain, or even within an Let me provide some examples. We Finally, as our chokepoints identify, individual supply chain. have a floating warehouse, often called all member economies have a finite a container ship of between 2500 and infrastructure capability and capacity. Many of the failures of the supply 13,000 TEUs that arrives at a port. We The objective for supply chain chain that lead to lack of co-ordination then unload those containers and store connectivity is to optimise the use of between the various elements, them as inventory for up to 3 days that capacity. especially transport movements, are a on the terminal hardstand – with the result of a failure of timely information, terminal then acting as a giant outdoor In my opinion, the secret of optimisation or worse, incorrect or inaccurate warehouse. Eventually, the warehouse of the supply chain is the early receipt information. is emptied over a few days. We then of timely and accurate information. repeat the process for the next vessel. Once I have access to that information Successful supply chain connectivity – whether government or business – I depends on co-operation and If Toyota, Honda, Hyundai, Kawasaki can then make an informed decision collaboration between government and and many other companies can of how I use that information to my industry. Without this co-operation, our organise a production facility to best commercial advantage or best cross border trade can easily stall. For store minutes of inventory – not government advantage. example, the US government’s C-TPAT hours or days – involving up to 6000 program, the European Communities components, surely it is possible for The important issue here AEO program and the various member the maritime industry to better co- economies’ 24 hr pre-load reporting is not the information per ordinate its inputs and outputs. I never se – but what I do with initiatives all require co-operation from cease to be amazed that Toyota can industry. I know that the Australian advise its seat manufacturer of the the information. From a Government’s preferred approach is build sequence of vehicles on the line business perspective, it is to have early reporting so that it can by model, type and colour, enabling do “its thing” and get out of the way of how I use the information the seat manufacturer to deliver seats business. that gives me my to the line for Toyota to take seats off competitive advantage. Early reporting is a key component of the truck and place them directly into visibility. I would like to return to this the vehicle. Surely, given the lead Early and highly visible information theme of early reporting later as it is a times in the maritime industry a similar enables me to quickly identify any key component of one of the chokepoints. flow can be achieved. “rocks” and take remedial action to

AUSTRALIA NEWS

ensure supply chain connectivity. It is implemented a single window. In cargo reporting for Customs purposes for this reason that I strongly support Australia we have identified 41 agencies – USA, China, EU and others. Already moves for supply chain visibility in a of government involved in international within the industry many companies, business government partnership and cross border trade, requiring over 7000 especially within the retail industry, allow the individual commercial entities data items on 200 plus paper forms. utilise the advanced ship(ment) to utilise that information in ways which When all the data was harmonised, only notice (ASN or Despatch Advice). best suits their commercial needs. 693 data items are required. This electronic message enables the receiver to know exactly what is in the In this context, I note that many What this identifies is that even shipment without the need to unpack member economies of APEC within though it appears that there is a 90 Asia are members of the Pan Asian % inefficiency rate, that inefficiency is the consignment. e-commerce Alliance – the PAA. I spread across the tens of thousands of Because the ASN is sent immediately support the work being undertaken by actors in the supply chain. Hence the the truck leaves with the goods, it is an the PAA on its cargo tracking project to costs do not adhere to any one group ideal message to provide to Customs provide a lot of this information across or sector within the supply chain. and to the consignee to inform them multiple borders. An important component of supply of what has actually been packed As a result we can move from the chain connectivity from an information and shipped. More importantly, from spaghetti junction concept to a more sharing perspective is the use of a Customs perspective, it can identify rational information flow to improve standards. As an information service down to a unit level what has been supply chain connectivity. provider I support standards – as shipped – that is, it identifies container, many standards as possible as it pallet, inner and outer packaging. Information exchange is an important underlies my commercial advantage. aspect of supply chain connectivity. However, it is not an optimal outcome As it is an existing business message, Again our 8 chokepoints identify for the myriad of businesses involved it can be used for multiple purposes the importance of simplification and in the supply chain and in fact, adds for the advantage of both business and information sharing – chokepoints unnecessarily to costs. government. 4 and 6. Again, I believe that there is a strong I consider that within the APEC context The trend to outsourcing of non-core case for government-industry co- it could be agreed as an “APEC activities by business, the rise of 3PLs operation to ensure that standards are standard” for use of advanced cargo and 4PLs only increases the need for implemented. reporting – thereby making a great greater visibility. Even though I have contribution to improved supply chain outsourced my logistics needs, I still I wish to conclude my brief remarks connectivity for both business and need to manage my inventory and know on the issue of early provision of government. information. In my view this is a benefit where and when goods will be arriving. to both industry and government. Comments on any of these items can Many APEC member economies have There is a global move to advanced be sent to [email protected].

Is rail the way to go? Comment by Peter Blanchard

The growth of containerised trade over the NSW and Victorian government task is considered contestable between the past decade and projections for have publicly announced rail targets the two modes with estimates around growth over the next 20 years, raises of 40 per cent and 30 per cent 10-15 per cent. the issue of how we as a community respectively. are going to transport that volume Given these data, are our state According to a number of studies 80-85 of containers given our existing governments’ announced rail targets per cent of containerised cargo in both infrastructure. Sydney and Melbourne is originated commercially viable? Can rail compete One simple solution would be to from or bound for destinations within 40- with road for containerised traffic increase the available infrastructure. 50 kilometres of each city’s major port. within our metropolitan areas? What Infrastructure is quite expensive with does need to change for rail to be According to the Productivity new rail lines and roadways costing Commission rail is best suited to heavy as competitive? Can rail become tens of millions of dollars per kilometre bulk commodities with regular, large competitive without road being made to build. As we have seen with volumes and long-haul cargoes, while less competitive? Infrastructure Australia bids, there is road freight is more flexible and is no lack of demand for these types of especially suited to carrying perishable, Sadly, I do not have the answers to dollars. fragile and time-sensitive freight. these questions but I firmly believe it Another possible solution is to move Further the commission found that only would be in the interests of the trading more containers by rail. In fact, both a small proportion of the total freight community if they were answered.

34 20102010 AUSTRALIA AutumnSpring 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 Victorian Regional Channels Authority has invested heavily to ensure its marine logistics and control systems are up-to-date.

The VRCA’s 24/7 marine traffic management system uses equipment such as automated ship identification (AIS), closed-circuit television (CCTV), 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 channel has new high-visibility markers. 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] www.regionalchannels.vic.gov.au The economy Best year of the decade brings rising confidence in agribusiness By MICHAEL CREED, National Australia Bank agribusiness economist

ustralian farmers tonnes, despite a reduction in acreage The odds of a La Niña event are firming, sown. Similarly, cotton production is with the Southern Oscillation Index are facing their tipped to rise by 34 per cent while rising, Pacific Ocean temperatures best year in more sugar production should increase 2 cooling and stronger than average A per cent and horticultural production is trade winds. La Niña events are usually than a decade driven by looking solid. associated with above average rainfall the ideal combination in the second half of the year across In terms of livestock, favourable weather large parts of eastern Australia. On of good rainfall and conditions have allowed farmers to aggregate, Australian farm sector rising global prices in rebuild cattle herds and sheep flocks production is tipped to rise on last year, following the drought. Reduced saleyard given the favourable weather outlook. soft commodities. activity in recent months has put significant upward pressure on Rising global Reflecting this confidence, the recent domestic livestock prices. soft commodity prices NAB Post Farm Gate Business Survey Yet the optimism is not widespread. revealed that agribusiness conditions Rainfall in the southwest of WA has This increase in production comes at are tipped to rise further in the been very low by historical standards an ideal time for the Australian farming September quarter. Survey respondents which will weaken crop yields while sector. Global soft commodities have cited rising customer confidence, export Tasmania has had a particularly dry risen substantially over the past year demand, strong employment and good winter. In southern Victoria, there is buoyed by tight supplies and rising rainfall as key drivers. some concern that excess rainfall demand in non-Japan Asia. Dominating newswires over the past month was the On the weather front, we have seen could impact dairy production, causing lameness in the dairy herd. rally in wheat futures, which were seen above average rainfall across the trading above 860USc/bu in Chicago in eastern states leading to one of the best Looking ahead, the rainfall outlook early August. cropping seasons in many years. The for spring is neutral across most of rainfall early in the year has boosted Australia, while southwest WA should The rally over the past month was both crop yields, with Australian wheat receive some respite with above average supply driven and speculative with the production tipped to rise to 22.4 million rainfall tipped in the coming months. Black Sea region, Canada and northern Europe facing weak crop conditions. More specifically, Russia is facing its worst drought on record, with the United States Department of Agriculture recently downgrading Russian crop production by 8 million tonnes. Given this production shortfall, the Russian government announced an export ban on outbound shipments of grain products, effective August 15 to December 31. This sent markets into a frenzy amid concerns that other Black Sea producers may follow Russia’s lead and panic importers trying to secure supplies. Since then, prices have pulled back somewhat as the market tries to take stock of the global supply situation. Prices should remain volatile over the near term and should settle once the supply situation is known. Sugar prices are picking up following large falls earlier in the year. The rally in recent months appears to have Cotton tipped to rise

36 2010 AUSTRALIA Spring Grain likely to remain volatile The economy

been affected by strong Asian demand Prices for livestock products continue Tightening global supplies and rising and drier than usual weather in Brazil. to show strength. Beef prices are Asian demand has provided a useful Logistics concerns have emerged, with currently up 4 per cent on last year buffer against this and should support a record number of ships held up in while lamb prices are up around 2 per the farming sector over the coming year. Brazilian ports. cent on last year. Much of this is due to As always in agribusiness, there are The port line-up and Brazilian export increased restocker demand reducing slaughtering. Export demand for beef risks on the horizon that could more pace suggests that nearby demand than offset the recent good news. is very strong and there exists few and rising domestic lamb consumption While there is good subsoil moisture options for buyers outside Brazil. has provided further support for prices. in the east, good spring rains are Australia is already heavily sold while While beef exports to Japan and the US still needed for the harvest to reach Thai and Indian production will not are relatively weak given the economic be available until 2011. Prices should its potential. Similarly, continued dry conditions, developing regions appear be maintained at least until near term conditions in WA could see their to be filling the gap. Exports to markets demand is satisfied. outlook deteriorate further. such as the Middle East, non-Japan The increase in cotton price has been Asia and the former Soviet states are Most notably, south-east Australia is remarkable this year with prices up rising. Further restocking activity and potentially facing its worst locust plague more than 30 per cent on last year. rising Asian demand should support in 75 years. This could significantly hurt The global stocks-to-use ratio, a key prices through the year. crop yields, and the flow-on effects fundamental in determining prices, is into livestock and dairy will hurt profit Dairy prices have fallen back from at its lowest level in 15 years, pushing margins. The impact remains uncertain the price rises seen earlier in the prices to over 90 UScents/lb. at this stage, as hatchings are expected year. Strong US supplies and to take place through spring. Driving this global supply squeeze is favourable seasonal conditions in a combination of rising demand from New Zealand have pulled back the Nonetheless, assuming the locust Chinese and Indian cotton mills and premium built up earlier in the year on situation is under control and the a weaker crop outlook for two of the weak northern hemisphere supplies. weather behaves as forecast, largest producers. Adverse weather Nonetheless, prices are well above Australian farmers can look forward to a conditions in the Yangtze Valley and 2009 levels and exporters can still prosperous year. South Xinjiang are set to reduce yields expect attractive margins. for Chinese production and the recent Asia supports beef prices floods in Pakistan could potentially lower Farming incomes Pakistan’s cotton production by as much as 30 per cent. This is likely to support tipped to rise prices over the near term but don’t Recent price rises and favourable expect prices to trend too much higher. weather conditions are likely to see Prices of synthetic fibres have not net farm cash incomes reach almost experienced the same gains so there $13 billion this financial year. Similarly, should be a degree of substitution away gross value of farm production in from cotton towards synthetic fibres, Australia is expected to rise to around tempering further price rises. The recent $45 billion on current production and strength in cotton prices has narrowed price expectations. the relative price of wool and with rising Chinese demand; the prospects for Much of this is price related, with the Australian wool are firming. Echoing increase in wheat prices alone likely cotton and wheat, global supply issues to inject around $1.5 billion into the have emerged as China recently rural economy (after accounting for announced import restrictions on South rising feed costs). What makes the African wool following an outbreak current situation remarkable is that it of Rift Valley Fever. This should see takes place when the Australian dollar increased Chinese activity in Australian is high and the US and European wool markets. outlook is weak.

Spring 2010 37 AUSTRALIA The economy

Survey shows SME’s are the backbone of export community By Tim Harcourt, chief economist, Australian Trade Commission

mall is still cent, health and community services on a previous Australian Industry Group 7 per cent and Finance and insurance (AIG)/Commonwealth Bank study, which beautiful…. when on 6 per cent. Less prominent was showed export intensity (export revenue it comes to retail trade, hospitality and building and as a share of total revenue), to be S construction. strong in outer metropolitan areas and exporting, that is. in the regions. So where do the small exporters go? That’s the word from the Australian Not surprisingly, proximity, language, In terms of age-profiles, given that it Bureau of Statistics, whose survey and business culture are important takes a while to get established, SME of the Australian exporter community factors. Our nearest neighbour, New exporters are also more likely to be shows that around 90 per cent of Zealand, is a destination for 34 per cent ‘baby-boomers’ than generation Xers or Australian exporters are either small or of all SMEs who export, followed by the gen Ys, and most have 15 to 20 plus medium sized enterprises. This confirms USA on 29 per cent and the UK on 26 years experience in the export game. previous research by the bureau which per cent. Next come the ASEAN states Do they make a buck? Previous showed SMEs to be the ‘engine room’ on 20 per cent and China on 13 per research shows that exporting, on of our exporter community in terms of cent and Hong Kong on 11 per cent. average, helps the bottom line. The growth potential. South Africa, the major gateway for survey results show that SME exporters, Australian SMEs to Africa, is on 10 per In fact, according to new research by on average, are more likely to have cent whilst Japan is 9 per cent. Then Austrade and Sensis, Australian SMEs an aggressive expansion strategy the ASEAN markets of Malaysia, the are now becoming a regular part of than other SMEs. They are also more Philippines and Singapore make up the the exporter community. Around 10 confident than non-exporters and are top 10 in their own right. per cent of SMEs export and this has more bullish on profits, wages and remained pretty stable over the past After our near neighbour New Zealand, employment. couple of years. The bottom line is and the traditional English speaking However, there is still much more to that you will find export potential in the markets of the UK and USA, the rise do to get more SMEs in the export grass roots of Australian business in of ASEAN has been noticeable along game. Despite the rewards on offer, the suburbs and in regional Australia with the rapid ascent of China. SME there is still a low ‘intention to export’ as well as amongst the blue-chip exporters who have been involved in in Australia amongst SMEs. What are corporates at the top end of town. ASEAN markets have been assisted the major barriers? It is not a matter of recently by even better market access So who are our small players? Where labour costs but labour shortages. A provided by the ASEAN Australian do they live, what do they do and where major reason cited by small business New Zealand Free Trade Agreement do they sell to? for not entering export markets is the and have benefited now from sticking lack of skilled staff with overseas sales First, let’s look at location, location, to those markets through thick and experience. They are willing to pay location. In terms of the states and through thin – that is, through an Asian good wages, but are keen to have territories, Australia is being led by Financial Crisis and a Global Financial well trained and/or experienced export Victoria on 15 per cent, followed by the Crisis. China’s rise – the proportion managers. This suggests that training NT and ACT on 14 per cent, followed of Beijing-bound SME exports has programmes – like the new exporter by South Australia on 10 per cent and 9 doubled in the past two years - is also development scheme are on the money per cent for New South Wales. Despite noticeable indicating that you don’t in terms of small business needs. the enormous mining export revenue have to be a big fish like Rio Tinto, coming the resource rich states of Woodside or BHP Billiton to succeed in So expect more action to come on the Queensland and WA, only 8 per cent of the Chinese market. SME front. This is good news as more SMEs export there, with 5 per cent of SME export action means not only Broadly speaking, what do our SME SMEs exporting in Tasmania. more growth and more profits for the exporters look like? For the most part, businesses concerned but also more Second, what about industry? they are likely to be more medium jobs for Australian workers at higher Wholesale trade leads the way with than small, more metropolitan than rates of pay. The ‘small is beautiful’ 32 per cent of all its SMEs involved regional and more likely to be run by phenomenon also forges stronger links in exporting. This is not surprising as a male born overseas. And whilst the with other nations right across the wholesale trade typically has many blokes still outnumber the women, there Australian community. exporters and importers involved in are a growing number of female-run the distribution game. Wholesale trade businesses in outer-metropolitan areas *Thankyou to Christena Singh from was followed by manufacturing on 28 which suggest more of a ‘Kath and Kim’ Sensis for her assistance with the per cent, business services on 13 per effect if anything. This is consistent with survey results.

38 2010 AUSTRALIA Spring 06 Ausmarine 4C FP:Layout 1 4/8/10 2:51 PM Page 6

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Survey shows SME’s are the backbone of export community By Tim Harcourt, chief economist, Australian Trade Commission

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The Australian Maritime College (AMC) is enhancing its role as reefs. Major international defence research projects are also Australia’s national institute for maritime education, training and exploring the use of DP for naval applications. research through the establishment of a new facility in Perth, Western Australia. AMC’s commercial arm, AMC Search Ltd, AMC Search provides the most extensive range of maritime is opening a Dynamic Positioning (DP) Operator training facility short courses available in Australia, plus a wide range of in James Street, Northbridge, with the first course scheduled maritime consultancy services. Short courses provided on a for 15-19 November, 2010. regular basis include: Through an initiative by AMC Search, the AMC Dynamic • Dynamic Positioning – Basic and Advanced Positioning Unit was established at AMC’s Launceston campus, Tasmania, last year. AMC’s DP courses are the • Shipmaster Revalidation only ones available in Australia and accredited internationally • ECDIS through the Nautical Institute (UK). • Bridge Resource Management/Maritime DP Operators are in high demand in the Australian and Resource Management international offshore oil and gas industry, and AMC has decided to open its second Dynamic Positioning Unit in Perth • Security Officers (ISPS Code) to be closer to the burgeoning offshore developments on the North West Shelf. • Safe Bulk Cargo Handling • Stability • VTS Operators Her Excellency the Governor General AMC Search is also a leading provider of maritime consultancy attending the opening projects, and in particular shiphandling simulation studies for of the AMC Dynamic new port design and development, and hydrodynamic studies Positioning Unit in using AMC’s specialist facilities such as its 100m Towing Tank Launceston, with AMC and 35m x 15m Model Test Basin. Other recent consultancy Search CEO, John Foster projects include compiling an inventory of engine emissions and DP Instructors Matt from shipping activities for the Port of Brisbane, and a baseline Barney and Tim Newton marine environmental study for the new Port of Oakajee in Western Australia. There are currently two DP courses in the AMC Search has ISO 9001:2008 QA certification and is AMC program: an approved supplier to the Department of Defence. For many years it has managed training for the Pacific Patrol • Basic (Induction) Boat project, on behalf of the International Policy Division of Defence. Courses are tailored to meet the operational and • Advanced (Simulation) maritime needs of the twenty two 31.5m patrol boats that Each course is 4.5 days in duration, and both include operate in 12 Pacific Island Nations. considerable “hands on” time with DP simulation equipment, including for the advanced courses intensive simulator It also regularly provides specialist courses for the RAN, and exercises on a Kongsberg KPOS dual redundant system which has previously trained crew and maintainers from international is one of the most widely used DP system in the world. forces such as the Royal New Zealand Navy, Kuwait Navy and Coast Guard, Oman Coast Guard and the US Army and Navy. The AMC Dynamic Positioning Unit is also developing 1 or 2 day DP introduction courses to provide an overview of AMC Search maximises the resources of AMC for commercial DP operations and systems for those that require a better purposes, with all net revenue being reinvested in AMC understanding of the role of DP operators – e.g. managers, to assist in its on-going development and continuous engineers and technical support personnel. improvement. Use of DP is not confined to the offshore industry, with many AMC and AMC Search are working together to develop passenger cruise ships now, for example, being fitted with DP more maritime training and consultancy activities in for station keeping when visiting destinations where berthing Western Australia in addition to DP, and are also evaluating alongside is not an option, and anchoring might damage coral opportunities in other states and the Northern Territory. DYNAMIC POSITIONING UNIT

Image courtesy of positioninc.

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BASIC (Induction) Duration: 4.5 days Course Fee: $3,150 (incl. gst) • Theory of DP operation • Elements of a DP system • Operation of DP facilities • Position reference systems • Special functions and applications of DP systems • Power generation and management • Watchkeeping and operational procedures

ADVANCED (Simulator) Duration: 4.5 days Course Fee: $3,400 (incl. gst) • Introduction to Advanced DP • DP practice and procedures • DP operation • Control modes and functions • Controls and indicators • Simulated scenarios

The Australian Maritime College is proud to announce that its successful DP Unit in Launceston is to be supported by a second DP Unit located in Northbridge, Perth, Western Australia. The inaugural DP Basic (Induction) course will be held in Perth from 15 - 19 November, 2010. Internationally accredited through the Nautical Institute (UK).

For further information contact: Mrs Catherine Wilson Short Course and Promotions Manager, AMC Search Ltd

CRICOS Code 00586B t | +61 3 6324 9852 e | [email protected] AMC LTD search www.amcsearch.com.au WAY AHEAD !

1196AMC_MLM_ShippingAus_100%.indd 2 17/09/2010 3:55:57 PM Legal Limitation of shipowners’ liability for maritime claims and the recent “APL Sydney” decision By DAVID COOGAN, Coogans & Co.

he Limitation of security for claims well in excess of the exceeded her post casualty value. limitation amount for that vessel. Liability for The first international limitation convention Facts (1924) introduced the concept of Maritime Claims shipowners being entitled to limit their T liability by reference to the tonnage of Act 1989 was enacted On 13 December 2008, the APL Sydney was engaged in anchoring operations the ship concerned for “various claims primarily to raise the in Port Phillip Bay. At the time a severe connected with a single incident”. financial limits of gale was blowing. During anchoring This convention did not obtain wide shipowners’ liability. As operations, the vessel dragged her international acceptance and was anchor and fouled a gas pipeline. Shortly superseded by the 1957 Convention a trade off for these after fouling the pipeline, the vessel’s which brought in the concept of higher limits, engines were put first astern, then ahead shipowners limiting their liability, again and finally astern again over a period by reference to the ship’s tonnage, but shipowners were of approximately 45 minutes. The initial for claims “which arise on any distinct provided with a fouling caused damage to the pipeline occasion”. The current, widely accepted such that it was no longer suitable to international convention on limitation of virtually unbreakable carry gas under pressure and the section shipowners’ liability (the 1976 Convention) limitation of their fouled was required to be replaced. The retains this concept of limitation of liability initial astern engine movement caused by reference to claims arising on any liability. A shipowner further damage. The following ahead distinct occasion. could only lose its right engine order caused the pipeline to The 1976 Convention limits to limit if the loss rupture and for gas to escape. The final astern engine order caused the pipeline Under the 1976 Convention the giving rise to the to sever completely. shipowners’ liability is assessed by liability was caused by reference to the relevant vessel’s Issue a personal act or limitation tonnage. This is the vessel’s The 1976 Limitation Convention enacted gross tonnage measured pursuant to omission (on the in Australian law pursuant to the Annex 1 of the International Convention shipowner’s part) Limitation of Liability for Maritime Claims on Tonnage Measurement 1969. A gross Act 1989 stipulates that the limits of ton is a unit of volume, each ton being committed with the liability set out in the Convention apply one cubic metre. intent to cause the loss to the “aggregate of all claims that arise on any distinct occasion.” A major or recklessly and with issue in the APL Sydney case was what knowledge that such a constituted a distinct occasion? loss would probably Historical background to result. The shipowners’ shipowners’ limitation of virtually unbreakable liability right to limit its liability Prior to the 20th Century limitation of is expressed in the Act liability conventions, broadly speaking, two distinct schemes existed in relation APL Sydney, image supplied by APL to be for each “distinct to the limitation of shipowners’ liability. Lines Australia occasion” giving rise to The British system enabled a shipowner to limit its liability to the value of the The 1976 Convention limits operate on a claims. vessel and freight assessed at the time sliding scale, with the limits reducing per immediately prior to the incident giving ton as a vessel’s tonnage increases. The In the recent case of the APL Sydney rise to the claims. The United States/ current limits for claims other than those (Strong Wise Limited - v - Esso Australia Continental European system was similar for loss of life and personal injury are: Resources Pty Ltd [2010] FCA 240) but the value of the vessel was assessed • For vessels not exceeding 2000 whilst the shipowner did not lose its after the incident giving rise to the claims. tons: 1,000,000 units of account. right to limit its liability, the interpretation The United States system gave the of “distinct occasion” gave rise to the shipowner the option of abandoning the • For each ton in excess of 2000 tons shipowner having to provide financial vessel in the event that claims clearly up to 30,000: 400 units of account.

42 2010 AUSTRALIA Spring Legal Broome Port – Niche Support Base for the Browse Basin Western Australia’s Broome Port is strategically located to support north- western Australia’s offshore oil and gas exploration, and is a growing break- bulk, general shipping and tanker intermodal hub for the Kimberley and adjacent Pilbara regions. With 600 metres of available wharf face and 10-metre alongide depth, Broome offers 24/7 cargo operations for multiple vessels and vessel types.

Supply vessels such as Lady Sandra regularly transit between Broome and the Browse Basin, and as far afield as the Carnarvon and Bonaparte Basins.

Fuel, water, other offshore supplies and 100-tonne cranes are available plus a wide range of logistic support infrastructure and equipment. Broome has a stockpile of OSR equipment Supply vessel ‘Lady Sandra’ loads for an August 2009 available at short notice. Browse Basin drilling campaign

Broome’s handy geographic location and fast turnaround times can save an operator significant amounts of time and money throughout a drilling campaign.

Our experienced and well trained staff provides surety in the areas of operations, safety and availability. The Port won a major award for safety leadership in 2007 and has received praise from major clients.

The Broome township provides facilities required of a support base, including the busy regional airport linked to capital cities, large well equipped hospital, a commercial and industrial hub, primary road network to Dampier and Darwin, abundant accommodation, and oil field service/logistics industries.

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For all inquiries phone (08) 9194 3100 E-mail [email protected] Website www.broomeport.wa.gov.au Spring 2010 43 AUSTRALIA Legal

• For each ton in excess of 30,000 of negligence had not been rendered further damage, Mr Justice Rares found tons up to 70,000 tons: 300 units of inevitable by the earlier. In other words, that there were two distinct occasions on account. if it had been possible to avoid the later 13 December 2008. The first occasion negligent acts, the second collision was the initial fouling of the pipeline. This • For each ton in excess of 70,000 would be deemed a distinct occasion caused damage (but no rupture) to the tons: 200 units of account. from the first. pipeline, necessitating the replacement of the damaged section. The second The unit of account is calculated by In Ballast Trailing NV - v – Decca Survey reference to special drawing rights or Australia Ltd (unreported NSW Supreme occasion was the second of the three SDRs which at the time of writing equals Ct), a dredging vessel, (the Willemstad) engine orders, namely putting the main AUD$1.63 per unit. cut through a pipeline on nine occasions engine to dead slow ahead. It was held that this engine order had resulted in The 1976 Convention permits a each separated by an hour or so. It was damage separate to that arising from shipowner to constitute a limitation held that each of the nine cuts were the initial fouling, namely the rupturing of fund by paying the vessel’s Convention distinct occasions and as such the the pipeline and consequent escape of limitation amount into court. All claims owners of the vessel, in effect, lost the gas. The other two engine orders given arising on any distinct occasion against right to any limitation of their liability. during anchoring operations were found the shipowner and its property are not to have given rise to separate claims effectively transformed into claims Mr Justice Rares’ decision in irrespective of whether they may have against the limitation fund. the APL Sydney caused further damage to the pipeline. The limitation tonnage of the APL Sydney In the APL Sydney case, the shipowner Consequently, they did not constitute is 35,991 tons. The limitation fund amount contended that all claims made by those distinct occasions. for the vessel at the time of the recent suffering damage as a result of what decision was approximately A$27.3 happened on 13 December 2008 during Summary million. the anchoring operations arose from one occasion, namely the fouling of the pipeline Mr Justice Rares’ has clearly stated the What constitutes a distinct by the vessel’s anchor. Accordingly, the test for deciding in what circumstances occasion? shipowner claimed to be entitled to limit its claims arise from one or more distinct liability to one limitation fund. occasions. To constitute a distinct There is some limited judicial guidance occasion, there must firstly be a new Not surprisingly, the Plaintiffs in that on what constitutes a distinct occasion. event and secondly a new loss caused action argued that the issue was whether In The Shwan [1892] P419, a shipowner by that event. Finally, to constitute a the Master of the vessel had had the was denied the right to limit its liability to distinct occasion, as a matter of common opportunity to avoid the subsequent a single limitation fund for two separate sense, the new event must not be a collisions with different vessels which negligent acts following on from the fouling of the pipe. The Plaintiffs necessary or inseparable consequence the vessel had whilst maneuvering of the earlier act or default. (negligently) in a river. The collisions maintained that the fouling of the pipeline were deemed to be separate occasions and the subsequent three engine In the context of the facts of the APL movements constituted four separate rather than one distinct occasion. The Sydney case, if it had been held that the and distinct occasions and as such the reasoning given was that the collisions pipeline ruptured during the initial fouling it shipowners were not entitled to limit its were caused by two distinct acts of bad seems likely that the shipowner would have liability to a single fund. seamanship. Whilst the second collision been entitled to limit its liability to a single had occurred very shortly after the first, it Mr Justice Rares rejected the shipowners’ limitation fund as, irrespective of further was not the time between collisions that contention. He stated in relation to damage caused by further maneuvering, mattered so much but rather whether distinct occasion: “whether one occasion no new claims would have arisen. Equally, they were caused by the same want of is distinct from another will depend on if the rupture of the pipeline had been seamanship. whether the causes of the claims that rendered inevitable by the initial fouling, arise from each act, neglect or default again it would appear that the shipowner Similar reasoning was applied in The are sufficiently discrete that, as a matter would have been held entitled to limit its Lucullite (1929) 33 Lloyds Rep.186. That of common sense, they can be said to be liability to one limitation fund. decision also concerned two collisions. distinct from one another.” The distinct occasion tests applied in The decision is an important one and will that case were firstly: whether distinct Applying this rationale to the facts of be of interest in many countries to which acts of negligence had caused damage the APL Sydney’s fouling of the pipeline the “distinct occasion” test is relevant in and secondly: whether the later acts and subsequent maneuvering causing the context of limitation of liability.

11th Floor, 88 Phillip Street, Sydney NSW 2000 Australia 24hr emergency response line: +61 (0) 403 226 449 COOGANS & CO Ph: +61 (0) 2 9252 4776 legal and consultancy services Web: www.coogansandco.com.au

Coogans & Co specializes in providing advice in relation to maritime law, transport and international trade. The following represent a non-exhaustive list of areas where Coogans & Co can offer its assistance: Charterparty issues including hire, freight and demurrage due under the various forms of charterparties. Cargo recovery and defence claims including the application of the Hague, amended Hague and Hamburg rules. Collision, salvage, ship fires, stranding and groundings. Passenger and cruise ships issues. Monetary security for claims including arrest and release of assets from arrest. Marine insurance, general and particular average, total and constructive total losses. Commodity quantity and quality issues and disputes. Advice on CIF, FOB and letter of credit issues and disputes. General debt recovery including the collection of container demurrage.

44 AUSTRALIA Spring 2010 Legal Newcastle Stevedores commenced operations on 3rd March 1997, and specialises in handling Bulk, Break-bulk, Project shipments as well as Containers. Newcastle Stevedores, through its extensive service provider relationships and sub-contractor management plan is equipped to provide clients with a total logistics package, and is happy to arrange the complete door to door movement of project and general freight should a client require extended services beyond the ‘traditional stevedoring realms’. Newcastle Stevedores is positioned to manage the whole transport chain responsibility, including Customs Clearances, thereby fulfilling a huge spectrum of customer needs.

Geoff Beesley, ManaGinG Director, newcastle steveDores Geoff has had over 50 years experience in the shipping and stevedoring industries, the majority of which was spent with P&O. In 1997, after parting company with P&O, he saw the opportunity to start his own stevedoring business. He has managed Container Depots, Shipping Agencies as well as all facets of the industry. His experience covers all types of cargo.

John willeBranDs, General ManaGer, illawarra steveDores John left Rotterdam in 1958 as Second Officer on the passenger vessel Willem Ruys and stayed at sea until 1973 when he joined Conaust as Supervisor, General Cargo. John spent a further four years in Europe prior to joining Geoff in 1997. In June 1998 he moved to Port Kembla to manage Illawarra Stevedores.

Illawarra Stevedores is a “sister” company of Newcastle Stevedores. It commenced business in June 1998 and handled its first vessel in July 1998. Primarily it handles general cargoes such as steel, timber, paper pulp and bulk cargoes. Illawarra Stevedores can assist you with your cargo transhipments, or even handle them for you completely. With recent changes in Port Kembla Illawarra Stevedores is ideally placed with expert stevedores who know their job and are the best available. The scene

The Australian Marine Environment Protection Association dinner

Dr Rachel Baird

Rosie Baird; Jody Plecas, education officer, AUSMEPA; Michael Julian, executive director, AUSMEPA; Captain John Russell Stuart, ex Inchcape; Neil Baird, chairman, Watkinson, general manager, Maritime Safety Queensland AUSMEPA; Captain Conrad Saldanha, deputy chairman, AUSMEPA

Kelly Moffatt, Moffatt Designs; Kelly Goodingham, Marine Teachers Professor Edgar Gold, Judith Gold Association of Queensland; Trent Moffatt, Moffatt Designs; Sheree Bell, vice president, Marine Teachers Association of Queensland

46 2010 AUSTRALIA Spring The scene

L-R seated: Michael Phillips, chairman, Shipping Australia; Llew Russell, chief executive officer, Shipping Australia; Teresa Hatch, chief executive officer, Australian Shipowners Russell Steward, past AUSMEPA director; Sharon Ralph, chair Association; Patrick Quirk, general manager, Maritime Safety SAL QLD State Committee. L-R standing: David Hislop, QLD Queensland branch manager, Hetherington Kingsbury; Rick Morton, general manager (planning, environment and community), Port of Brisbane; Bill Guest, secretary, SAL QLD State committee. SAL takes a table at AUSMEPA dinner and golfers take to the course SAL was part of the Australian Marine Rydges South Bank Hotel. The guest Environment Protection Association speaker was Dr Rachel Baird, senior 10th anniversary celebrations in lecturer in environmental law, University Brisbane when 70 guests joined the of Southern Queensland. She spoke present and past chairman of the about emerging environmental issues association for dinner. There was an SAL likely to affect shipping and the broader table at the event which was held at maritime community in the future.

Left to right; John Eastman(ANL), Hugh Mackay (Hapag Lloyd), David Hislop Allan Kemp (Patrick Logistics) and Gary (HKSA), Alan Gordon (ANL) Wotherspoon (Hyundai) Hit-off for 120 players … Queensland’s annual Shipping Industry Golf Peter Keyte, Wayne Taratoa, Maurice Williams Day was hosted by SAL at the Pacific Golf and Jason Brengrey; OOCL Dennis Briant Club, Carindale, and sponsored by BP Towage Cup – Steve Tzaneros, Jim Theodorou, Gary and Chalmers Industries and several hole sponsors. The weather was perfect and the Coulloupas and Mirco Debelak; Chairpersons course in great condition for the 120 golfers. Trophy – Lionel Edwards, Matt Hancock, Bob Major winners on the day were SAL Cup – Huxley and Adrian Thompson.

Spring 2010 47 AUSTRALIA YSA

Five-point plan to get ahead in tough times By EMMANUEL PAPAGIANNAKIS, NSW YSA chairman

n February this year, Indeed, during 2009 the world generally Fast forward to September and the went through a period of satisfying industry appears to have staged an we had the pleasure demand through the liquidation impressive turnaround. Some Lines of hosting a Shipping of existing inventory rather than are now breaking even (that is exciting I production. The losses were staggering, in shipping) and a few are making Industry Outlook with estimates of $US20 billion being profits (few means 1-2 in shipping). presentation with John lost by the industry in aggregate. Lines However, as our more experienced were battling with overcapacity, rates shipping members will advise, we Bradley – Managing below cash costs and idle vessels. must still exercise caution. Accounting Director, Hapag Lloyd Our email inbox was being filled breakeven has been a trigger for up of images of vessels laying up capacity expansion and we have (Australia), Eddy at ports around the world. The only seen the introduction of new players Declercq – Managing people taking ships were pirates and in the market. Furthermore, despite opportunistic Greek shipping tycoons. improvements in the last 12 months, Director, OOCL many analysts still estimate a 20 Many in the industry had weathered per cent supply/demand gap in the (Australia), and Peter the previous cycles and had been industry. Our presenters did warn us Dexter – Chairman through some type of downturn back in February. before. The industry moved to reduce Oceania, Wallenius capacity by cutting services, increasing In the next few months, Quarter 3 Wilhelmsen Logistics. slot sharing and introducing slow- results will be out and the word on the steaming. For Gen X, those born street is that there may be significant Back then, the wounds between1965-1977 and Gen Y, those improvement in liners profitability. This of the global recession born between 1978-1987, many of us will coincide with the arrival of summer had the experience of working during a and uplift in our moods. Without wanting were still evident and downturn for the first time. Many of us to spoil the party, momentum may slow after the peak season. Volumes are the shipping press was witnessed redundancies either directly or indirectly and had suddenly become likely to fall with normal seasonality and the shortage of containers will be dominated by the quasi-accountants reviewing costs of abated, as container manufacturing has all tasks. More was to come, with new largest losses in been in full swing in recent months. In cost-cutting initiatives, restructuring addition, volume guarantees for peak decades. and terms such as efficiency reviews, season will expire and place pressure process excellence and optimisation. on rates, not to mention the impact of The Monte Carlo’s were replaced with larger tonnage. Arrowroot biscuits and the morale in many offices nosedived. Many Gen Xs 2010 is also the year in which the and the odd Gen Y, were feeling a bit youngest Gen X and Gen Y members numb, after years of economic growth. turn 33 and 23, respectively – old

outlook com group - left to right, Hussein Chahine, outlook event 3 - left to right, Alycia Elliot and Kylie Frost (Seaway Agencies), Alex Faliotti (Hamburg Sud) and (Maersk), Paul Alexander (Shipping Australia) and Emmanuel Papagiannakis (Patrick Terminals). Nathan Cecil (Norton White).

48 2010 AUSTRALIA Spring YSA

enough to become full-fledged workers and managers at Reflecting upon the list above, I can’t help but notice the most companies. So what can we do in these challenging ability of YSA to deliver some of those outcomes. During times? Rather than hide in a corner, I suggest we use these these tougher times, YSA is a great way for younger maritime tougher times to stand out and get ahead. The message was professionals to increase their skills by attending events such relevant back in 2009 and given the cyclical nature of our as the Outlook event in February, in which we were fortunate industry, suggests it’s as relevant now. I’d like to suggest the enough to secure the expertise of three leading shipping following five points to get ahead in tougher times: professionals to provide their views on the past, present and 1. Increase your skills. Get training, either through formal future of the shipping industry and guidance on progression graduate/post graduate education or any type of within the industry. In April, we held an education roundtable structured course that is relevant to your field. Study which provided members with an opportunity to obtain alone is no substitute for experience, so ensure you information from a selection of institutions, which included apply that knowledge. the Institute of Transport and Logistics Studies (Sydney 2. Work on tough projects. I hear the complaints of many University), Australian Maritime College, Institute of Chartered friends who are burdened with new assignments. I’ve Shipbrokers and the UNSW, amongst others. done my fair share of complaining too, however, a In addition, participation in the Committee is a great way challenging project gives you access to high-level to build skills through working with others in a Committee meetings, customers, training and resources that you structure. There is an ability to work on projects and it’s a wouldn’t access in more mundane assignments. Ensure forum to exchange ideas in an environment that is supported you look for projects that are likely to help both the by various levels of experience and knowledge. In these company and your career. Whilst you should also look at the likelihood of success, your willingness to tackle tough tougher times, YSA can assist companies by engaging projects will be recognised and may make your work employees, providing networking opportunities, skill building more exciting. and would urge SAL members and those young shipping professionals to become involved. Our next event is a Maritime 3. Get a mentor. Mentors can be helpful no matter what the Law presentation on the 30 September and we have our circumstances are. They not only help you to expand Christmas event on the 19 November. For further information your skill set but can also help you take a more objective on YSA, please email [email protected]. look at your work challenges and opportunities. This could simply involve a coffee once a month or a weekly catch up. Given the mentor is providing their valuable time, I would ensure that you are providing something back into the relationship or at the very least, taking the initiative and lead in mentoring meetings. 4. Offer suggestions to increase revenue and cut costs. There is nothing that gets more attention than an employee who generates additional revenue. This can be challenging particularly if in a non-customer role. Ask customers what additional services they’d be willing to pay for or even discuss general satisfaction. You may uncover services which would delight customers, which your company is not providing or which the customer is not aware of. Air-conditioning in cars was once a delight; it’s now a basic need, a satisfier. In car satellite navigation, heated seats, cup holders were all optional extras that were uncovered by understanding the voice Towage is a People Business of the customer.

Saving the company money is another great way to gain visibility during tougher times. Regardless of position, almost anyone can make a suggestion here. Get creative and find areas of waste, where your company can trim costs. An airline employee once helped their company save thousands of dollars by eliminating olives from salads – obviously not a southern European airline! Lastly, there’s no such thing as a good idea, unless it’s developed and utilised. 5. Stay positive. Keeping a positive attitude during an economic crisis replete with redundancies, falling share prices isn’t easy. However, people who have a doomsday philosophy tend to become victims; it becomes a self- fulfilling prophecy. Positive people tend to be more energetic and positive thinking can help employees excel in hard times. Ask what you can do to help your business area. It’s a time when priorities can be reset and you may want to rethink your goals. The worst thing you can do is isolate yourself and withdraw by not maintaining contacts with customers and work colleagues.

Spring 2010 49 AUSTRALIA Profile Signal SAL supports vision for revitalised Australian shipping

On 13 August the minister for Contrary to reports that the one billion Australia’s nominee wins infrastructure, transport, regional dollars expected to be raised will be international bravery award development and local government, placed in consolidated revenue, the Anthony Albanese announced that Government’s objective can only be (as reported in the winter Labor will make several reforms to fiscal met if a special account is established edition of AMSA’s Abroad arrangements to encourage Australian to channel the funds collected directly newsletter) businesses to invest in Australian into infrastructure improvements and registered ships. productivity incentives for trucks A crewman aboard the Scarlett Lucy, The measures would include: servicing the port. SAL continues to James Fanifau has been awarded the have concerns that the charge will IMO Award for Exceptional Bravery at • a tonnage tax, attracting tax liability apply to non-revenue earning empty Sea following his nomination by the on income from trading activities containers and the potential detrimental Australian Government. James climbed based on the tonnage, rather than impact on the supply chains so over the side of the vessel and saved the profits of the ship; essential to facilitating Victoria’s, and by the life of a 71 year old American sailor definition Australia’s, foreign trade. For • a training obligation if using the by holding him to the cargo net without tonnage tax system; more read the press release at www. shippingaustralia.com.au. thought of the risk to his own life in • alternatively, companies can utilise treacherous sea conditions. Readers accelerated depreciation; Victorian Government will recall that the AMSA search • an international shipping register; seeking input on Melbourne and rescue division wrote about this port/freight future important rescue in the December 2009 • changes to income tax edition of our magazine. arrangements for Australian In recent months, the Victorian resident international seafarers to Department of Transport has issued New head of the link with worldwide practices and a discussion paper on Shaping International Chamber of the package was; Melbourne’s Freight Future which Shipping • conditional on a compact between includes proposals for an intermodal solution to service Melbourne’s growing industry and unions to deliver labour Captain Peter Hinchcliffe has replaced productivity and efficiency reforms. containerised freight task. Submissions Tony Mason as the secretary-general of are required by 30 September. SAL looks forward to being consulted the International Chamber of Shipping by the new Government on the The Port of Melbourne Corporation and International Shipping Federation. details to ensure the new measures has also issued a market sounding can facilitate the establishment of a discussion paper on the additional International Chamber viable and internationally competitive container capacity required by the produces new ISM Code Australian merchant marine. port of Melbourne to meet forecast trade growth including the possible guidelines SAL welcomes appointment development of Webb Dock East as a On 1 July, the latest amendments to the of new NSW ports minister new container terminal. Submissions are International Safety Management (ISM) required by 30 September. SAL welcomed the appointment of Code entered into force. ICS and ISF Eric Roozendaal, the NSW treasurer The POMC also issued a discussion have published a new edition of their and minister for state and regional paper on the possible development definitive guidelines on the application development, as the new minister for of Webb Dock West for motor vehicle of the ISM Code with additional ports and waterways and minister for imports and exports and what guidance on risk management, safety the Illawarra on 3 September following alternatives may be available to meet culture and environmental management. the resignation of Paul McLeay. For forecast demand. Submissions are more refer to the press release at www. required by 7 October. For more visit www.marisec.org. shippingaustralia.com.au. SAL is finalising its submissions to all New general manager, SAL supports Victorian three discussion papers and commends marine environment the Victorian Government for engaging minister’s commitment to division, AMSA improve sea/land interface in such a high level of industry consultation. Toby Stone has been appointed to At the end of August, the Victorian ports MUA national secretary this new position. He has a wealth of minister stated that the Government experience across the maritime sector, was ‘continuing to work closely with appointed to prestigious particularly in regard to pollution the freight industry to implement the international post freight infrastructure charge which will response. Tony spent 12 years at sea be structured to encourage greater SAL congratulates Paddy Crumlin on as a deck officer with BP Shipping efficiency and utilisation of trucks in and his appointment as president of the prior to joining the UK Maritime and around the port of Melbourne precinct.’ International Transport Federation. Coastguard Agency 13 years ago.

50 AUSTRALIA Spring 2010 Signal

Oil simulation exercises Training Two successful face-to-face conducted in Port Botany Introduction to the Maritime Industry The Introduction to Shipping online courses have been held recently in both On 6 September, Port Botany was course recently received an update Sydney and Fremantle as the training the scene of a simulated oil spill as we continue to make sure the of staff is back on the agenda for many containment exercise, designed to information provided in the course test Sydney Port’s oil spill response is the most up to date and relevant companies. Attendees to these courses capabilities. information for those new to the ranged from our members, outports shipping industry. and even government agencies who see the value in training staff involved in maritime areas developing a better understating of our industry. In recognition of the technicalities in releasing staff to attend a two day face to face course and after the continued support for online training, SAL is in the early stages of developing the advanced Introduction to the Maritime Industry course in an online format. This exciting new format will provide those in isolated areas and those who do not have the time to commit to the two day course to complete this more detailed Introduction course in their own time at their own pace. The opportunity for face-to-face training will still be available for those who would like their staff trained with the presence of a highly knowledgeable trainer and in- house courses can be arranged. For more details on training please Sydney Ports emergency response vessels Response 2 and Banks at Port contact Paul Alexander palexander@ Botany laying containment boom around the designated area shippingaustralia.com.au or by phone on (02) 9266 9916. Australian Institute of Export courses for 2010 Date Course Duration Location 12 October Import Procedures Course 12-13 October Sydney 13 October International Trade Law and Intellectual Property Perth 15 October International Trade Law and Intellectual Property Sydney 19 October Import Procedures Course 19-20 October Adelaide 21 October Effective Negotiation for Export Success! 31 October Online Export Procedures Course 16 November Export Procedures Course 3 Days Parramatta 16 November Import Procedures Course Perth 16 November Understanding Documentary Credits Adelaide 16 November Understanding Documentary Credits Brisbane 23 November Export Procedures Course Melbourne 23 November Export Procedures Course Sydney 30 November Export Procedures Course Brisbane 30 November Import Procedures Course 30 Nov-1 Dec Melbourne 30 November Online Export Procedures Course 2 December Understanding Documentary Credits Sydney 24 December Online Export Procedures Course 31 December Online Export Procedures Course

51 Spring 2010 AUSTRALIA ready. capable. confident

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