AUSTRALIA

The future of POWER

PROFILE GLEN HILTON, DP World Australia A TRIBUTE TO ROSS MCALPINE

PORT COST INCREASES EMPOWERING WOMEN IN THE MARITIME COMMUNITY

Starting a Conversation on Nuclear Power SPRING/SUMMER 2019 Tasmania’s tradelink to the world

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DNC_Full_Page Generic.indd 1 19/12/2018 2:44:16 PM CONTENTS SPRING / SUMMER 2019 12 14

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02 FROM THE BRIDGE 06 VIEWPOINT Australia is well served by international shipping 10 PROFILE GLEN HILTON, managing director and CEO of DP World Australia 12 WOMEN IN SHIPPING COMMODORE FIONA FREEMAN, Hydrographer of Australia 14 FEATURE 14 The future of power 15 Beginning of the end for coal… and gas 32 18 Renewables v nuclear? 19 Other countries can change, why not Australia? 20 The case for nuclear power – reliable, afordable and low carbon electricity 22 Starting a conversation on nuclear power 54 24 WORLD MARITIME DAY Empowering women in the maritime community 26 SURFACE TRANSPORT Transport fuel security through electrifcation 28 INCOTERMS 2020 Trade wars and refning transactions: reducing your risks 30 COTTON We need the politics and spin to stop and the rain to pour 49 32 ANTARCTIC INNOVATION Commissioning Australia’s new icebreaker 46 TECHNOLOGY 46 Traxens role in the new digital strategy 36 CONTAINERISATION 48 Changes to wine export systems The future’s looking greener for containerisation 49 TRIBUTE 38 SEAFARER WELFARE Ross McAlpine - a long voyage around the buoys Caring for seafarers who serve us! 50 THE SCENE 40 BUSINESS / ECONOMY 52 PORT COSTS 40 Some trade wars are more equal than others 54 PORTS 42 Exchange rates in the current trade environment 54 Port-rail connections needed to cope with freight 44 MARITIME TRADE volume growth IMO’s 2020 Low Sulphur Fuel (LSF) – Are we ready yet? 56 Townsville welcomes Ports Australia Conference

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The future of power comes Publications commitee: Ross McAlpine, Frank Needs Executive editor: Rod Nairn in all shapes and sizes Executive assistant: Sharyn Flood See page 14 Graphic designer: Sarah Abrahams E: [email protected]

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Shipping Australia Magazine is published for Shipping Australia Ltd by Ontime Publications Ontime Pubications. Spring / Summer 2019 I Shipping Australia Limited 1 From the bridge

Big, bigger, biggest… what comes next?

By ROD NAIRN AM, CEO, Shipping Australia Limited

consensus was up to 10,000 TEU and Well, those big container ships are here within 10 years. now, and didn’t that happen fast? At least fve years ahead of estimates. While the While Australia boasts the biggest bulk global news was the maiden voyage of the port and biggest coal port in the world MSC Gulson through the Suez Canal, the (Port Hedland and Newcastle respectively), big new for Australia was the arrival of two and Australia’s place as a design driver 9500 TEU (approximately) Bospherous-Max in bulk ships is evidenced by ‘Wozmax’ ships, Maersk Skarstind and MSC Elma, and ‘Newcastlemax’ ship classifcations, within a few days of each other. Maybe Australia is a small player in global not 400 metres long, but to the amazement container shipping. Only two of our ports; of many, including me, these 300 metre Melbourne and Sydney, fall within the top long 48.2 metre beam ships are being 100. Therefore, we are defnitely out of the accommodated in all our mainland capital race when it comes to defning container city ports, including Swanson Dock - that’s “Woh-hoh-oh the ship’s are getting ship design. Like the youngest child in under the West Gate bridge and up the bigger”… you could almost say the family, we get the hand-me-downs Yarra River. that (a slightly mis-quoted) ‘Mental from the bigger siblings. In shipping, that as Anything’ just about has our usually means, what the big lines have left Congratulations to the ports of Brisbane, over when they replace ships on their more Botany, Melbourne, Adelaide and industry covered. important routes. Fremantle for your foresight, investment

In August the world’s largest container ship, MSC Gulsun, arrived in Bremerhaven to complete her maiden laiden voyage from China. At 400 metres long and 60 metres wide, the Gulsun has a massive nominal capacity of 23,756 TEU and is the frst of ten ultra large container vessels that MSC has on order. The ship is equipped with scrubbers to comply with IMO 2020 low- sulphur emissions, and can be adapted to operate on LNG in the future. It’s not just the northern hemisphere either. Before the privatisation of the port of Melbourne, I was approached by various consultants asking “what sized ships do your members want to bring to Melbourne and when will they come?” It was a tough one to answer, and while no shipping line would put their hand on their heart and specify a size and date, the general MSC Guslun loading in Shanghai Image: MSC

2 Shipping Australia Limited I Spring / Summer 2019 MSC Elma making a perfect picture in Port Botany Image: MSC and hard work to accommodate visits administrative compliance burden of Industry”. It is about time that supporting from these ships. Previously, in Blame those that do. This has led to more freight and empowering women received it on the Panama Canal1 I criticised the on trucks, and unnecessary increase in dedicated focus in the global maritime lack of foresight to plan for bigger ships in greenhouse gas emissions and sadly, more community. I am impressed to see the Melbourne, particularly the Infrastructure deaths on Australia’s roads. number of women in positions of infuence Victoria report which insinuated that in the Port Authority of New South Wales, Melbourne didn’t need ships bigger that A key aim of the Act was to encourage and who were highlighted in their recent news 6800 TEU for the next 15 years, so they protect Australian fag shipping, but it has release ”Meet the women keeping ships wouldn’t plan for it! A bit ‘King Canute’ failed at that too. The steady decline has safe in NSW”. I also think it is timely to holding back the tide? But now I must continued, so at last count there were nine recognise the pioneering eforts and eat humble pie and congratulate the Port internationally trading Australian fagged achievements that Australia’s Navy has of Melbourne, Victoria Ports Corporation vessels. It really is time for a change in the made in this regard, over the past 35 years. Melbourne, the harbourmaster and pilots Coastal Trading Act. You will fnd some recollections on this history on page 24. for working together to develop operational This year’s theme for IMO’s World Maritime and safety protocols to bring these bigger Day, celebrated on 26 September, is It is truly a complete coincidence that our ships up the Yarra. “Empowering Women in the Maritime women in shipping feature this edition It is probably about time that I raised the matter of coastal shipping regulation again. While it has been out of the limelight of late (apart from the Victorian coastal shipping review), this restrictive and bureaucratic legislation has been quietly stifing opportunities for domestic sales for our producers and manufacturers, and encouraging import substitution. The recently announced LNG facilities at Port Kembla and Newcastle are prime examples. They have received a warm reception from many east coast Australians who see the possibility of an abundant gas supply bringing down prices, but the likelihood that the gas will be imported from overseas is - despite Australia currently being the largest producer/exporter of natural gas in the world. This piece of legislation has been a complete failure, it has reduced shipping lines’ participation in carrying domestic cargo and substantially increased the Maersk Skarstind at Fremantle Image: Fremantle Ports

1 See https://shippingaustralia.com.au/blame-panama-canal-ships-size-growth-costly-port-melbourne/

Spring / Summer 2019 I Shipping Australia Limited 3 disarmament protests of the 1980’s, which For more than a year I have been The container inextricably linked nuclear power with commenting on the planned introduction nuclear weapons. But these are two very of a new biosecurity levy, which was a exhibition goes diferent things, and maybe it is time to surprise announcement in the 2018 Budget. think again? There have been amazing The planned levy is to return an additional developments in the area of nuclear power $108 million to the Federal Government west that might just make it a viable and realistic each year. No one doubts the need for For the past 18 months the option for Australia. Small, safe modular strong biosecurity - our industry fully Container Exhibition - the Box that reactors can produce enough power for supports it, but the fact is that industry is already covering around 80 per cent of the Changed the World – has been a medium-sized city in an area not much cost of protecting Australia’s biosecurity. drawing crowds and spreading the bigger that a football feld, and with zero This number is continuing to grow as word throughout New South Wales emissions. Isn’t that what we need to save our level of imports increase, while the about how the humble container the future of our planet? has completely revolutionised Government has reduced it allocation in real international trade. That exhibition, Shipping rates are on the up and it seems terms over the past seven years. which started outside the National that it’s all down to IMO low-sulphur 2020. The good news is that Minister for Maritime Museum in Sydney back The 0.5 per cent sulphur limit will be with us Agriculture, Bridget McKenzie, has now in October 2017 has now informed by the time you receive our next magazine. released the Report of the Bio Levy Steering and amazed 234,557 of our fellow It will undoubtedly have signifcantly more Committee. This is a comprehensive Australians from Darling Harbour to of an impact than the feared Y2K bug, report and its release now puts all the the beachfront in Wollongong, then which came loudly and disappeared with a considerations out there in the open. It will out west to Wagga Wagga, Narrabri whimper at the turn of the century. No one inform future discussions. It builds on the and now at the Western Plains should be surprised that there has been a Cultural centre in Dubbo. previous reviews and highlights a serious recent spike in shipping rates in all sectors, lack of authoritative information on relative Where to next? The National as the chronic over-supply of capacity in risk vectors. Maritime Museum is currently some trades has been strangled, at least You should be aware that the terms of engaging sponsors to enable the temporarily, while more and more ships are exhibition to travel to Fremantle reference for the committee required us to taken of-line to ft scrubbers or have other recommend HOW to collect the revenue, where it is due to launch 1 modifcations ahead of the IMO low-sulphur November and then potentially onto not WHETHER it was justifable to place a deadline, on 1 January 2020. Darwin for 2 May 2020. Make sure further load on industry. you support or visit this exhibition as There is no doubt that bunker surcharges And let’s remember, every Australian it educates the public of Australia on and freight rates will rise to factor in the benefts from strong biosecurity, and the importance of containerisation. increased cost of low-sulphur fuel, or everyone who buys imported products (and recover the capital investment and higher that is everyone) is a risk creator. Therefore, operating costs of ftting scrubbers, but biosecurity is a public good and it makes by how much? Melwyn Noronha dissects sense to spread the levy across all tax- some of the fact from the fction on page 44. payers through budget appropriation.

From the Box that Changed the World to the WORLD in a BOX

Regional Councillor Stephen Lawrence It is no accident that this second year of the Container Exhibition coincides with opens the Container Exhibition in the 50th anniversary of the arrival of the Encounter Bay in Australia. This event Dubbo accompanied by Michael on 28 March 1969 marked the commencement of international container trade Harvey, Australian National Maritime between Australia and Europe. Museum; Marika Calfas, CEO NSW Our previous two magazines have included a number of features on the Encounter Ports and Kent Buchanan, Western Bay, the birth of the container trade and the changes that containerisation has Plain Cultural Centre brought to the wharves and waterfront. Image: AMY McINTYRE – The Daily Liberal So you’ve read the book and you’ve seen the exhibition, now you can WATCH THE MOVIE. Fifty years of international container trade for Australia is certainly something that is Commodore Fiona Freeman, current should be celebrated. The Encounter Bay’s maiden voyage was the watershed Hydrographer of Australia, and one of the event that heralded a paradigm shift in ocean freight movement. A shift that made ofcers to serve under my Command in the impossible, possible. HMAS Flinders in the mid-1990s. To commemorate this event in the era of digital communication, an intrepid and Our feature article is all about the future of enduring group of shipping industry enthusiasts, let by Martin Orchard, with the power and there are some wide-ranging support of the International Trade Development Fund, Maersk Line, Shipping views to consider. You could come to the Australia and others, have produced a 20 minute documentary expounding the conclusion that it’s all about solar and wind, amazing development of the international but read on, as there is much more to it maritime container trade since the arrival of the than that, and I don’t limit this concept to Encounter Bay. Australia’s traditional fallbacks of coal and The flm titled “The World in a Box” will be gas. Clean coal certainly has a future, and launched by Federal Minister for Trade Simon LNG is cleaner and greener, but what about Birmingham in Adelaide on 22 October, with that taboo word, nuclear? future screening proposed for other capital cities Australia’s anti-nuclear mind-set has been and ultimately digital release on the internet. set by Midnight Oil songs and the nuclear

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Spring / Summer 2019 I Shipping Australia Limited 5 Australia is well served by VIEWPOINTinternational shipping By ROD NAIRN

Australia’s economy and container ships, roll on-roll of, heavy lift, ship owners are not forced to deal with every Australian’s quality of cruise ships and foating hydrocarbon Australia’s militant and self-serving production and storage vessels. They all maritime union. life depends on international come to Australia to service our needs. There are many open registries in commercial shipping. Many are on a regular route and return the world that are attractive to ship again and again, others are chartered on owners because they specialise in Yes, we are an island. Air transport the spot market for a specifc task and managing international shipping, connects our people to the world and when that’s done, they sail elsewhere. carries about two per cent of volume minimise regulatory burden and costs of our high value cargo. But the vast You don’t need to own every book when of operation, and provide investment majority of our freight goes by sea, more you can use a library? You don’t need incentives. These registries apply than 98 per cent of it. to own every tool you use when you can international standards which are hire the best tool for the job (though I absolutely appropriate for international Australia has the fourth largest admit is would be nice). You don’t need shipping. international sea-freight task in the to own every car, or bus or train that you Since the global implementation of the world. ride in. Maritime Labour Convention, the rights There are around 5,000 unique International shipping is efcient use on and conditions of international seafarers international ships (yes, they are the a global scale, this is minimising waste are protected. These conditions can be ones fying foreign fags and demonised and conserving resources. This is good checked and enforced by coastal states, by Australia’s maritime union) making for the planet and it is good for Australia. and so they should be. Australia is more than 30,000 port calls to more than prominent in its enforcement of the MLC The best interests of Australia are served 70 ports around Australia’s coast each and I applaud them for that. year. by focusing on optimising the benefts that international shipping provides to Shipping is an international commercial They carry our imports of every-day the greater good of ordinary Australians. industry, where there is a demand for goods that you take for granted, more It should not be considered as the ships and the potential for a commercial than $200 billion worth of: food, fuel, golden goose to squeeze for more proft to be made, there will be ships clothing, toilet paper, farm and mining fees and taxes. The more taxes you to serve the demand. There is also machinery, fertiliser, cement, vehicles, impose on international shipping visiting an enduring overcapacity in almost televisions, computers and smart Australia, the more every Australian all sectors, so there are always ships phones, to name a few. will pay for the imported goods they looking for their next commercial They also carry around $220 billion use. Neither should foreign shipping be opportunity and ready to service worth of exports to balance our trade. treated as a pariah. Australia’s need. Most of these are heavy, resource or At last count there were just four large Commercial shipping is a service, it agricultural commodities: iron ore, coal, Australian fagged commercial ships is a means to an end, not an end in mineral sands, grains, pulses, meat and engaged in international trade. There itself. Shipping is needed to move wine. are another 42 Australian-owned ships cargo internationally and domestically. These ships come in all types and sizes, sailing under foreign fags on open Australia can control it through our port designed and optimised for specifc registries. And why is this so? Because State controls, you don’t have to own it, purposes: dry bulk, liquid tankers, it makes sound commercial sense and or fy the Australian fag to use it.

Disclaimer: Readers are advised that Shipping Australia Limited and the Publisher cannot be held responsible for the accuracy of statements made in advertising and editorial, nor the quality of the goods or services advertised. Opinions expressed throughout the publication are the contributors own and do not necessarily reflect the views or policy of Shipping Australia Limited or the Publisher. While every reasonable effort has been taken to ensure the accuracy of the information contained in this publication, the publisher takes no responsibility for those relying on the information. The Authors, Publisher and Shipping Australia Limited disclaim all responsibility for any loss or damage suffered by readers or third parties in connection with the information contained in this publication. Nothing in this publication should be construed as personal or professional advice and should be read as general information only. Warranty and Indemnity: ADVERTISERS and/or advertising agencies upon and by lodging material with the Publisher Ontime Publications for publication or authorising or approving of the publication of any material indemnify Shipping Australia, the Publisher, its servants and agents, against all liability claims or proceedings whatsoever arising from the publication and without limiting the generality of the foregoing to indemnify each of them in relation to defamation, slander of title, breach of copyright, infringement of trademarks or names of publication titles, unfair competition or trade practices, royalties or violation of rights or privacy regulations and that its publication will not give rise to any rights against or liabilities in the Publisher, its servants or agents and in particular, that nothing therein is capable of being misleading or deceptive or otherwise in breach of Part V of the Competition and Consumer Act, 2010 (Cth).

6 Shipping Australia Limited I Spring / Summer 2019 VIEWPOINT Keeping the ports of NSW safe, secure and open to the world

Sydney Harbour | Port Botany | Newcastle Harbour | Port Kembla | Port of Eden | Port of Yamba

www.portauthoritynsw.com.au

Follow us @por tauthoritynsw

Port Authority cutter crew Port Botany, New South Wales Spring / Summer 2019 I Shipping Australia Limited 7 ADVERTORIAL

Sustainability during transition

By CRAIG CARMODY, chief executive ofcer, Port of Newcastle

For more than 220 years, Port of Newcastle has been providing a global trade gateway linking the Hunter and regional NSW with the world. There is no doubt the world has changed immensely in that time.

There are now three major transitions transport and channel capacity, Port of that the best infrastructure is the one underway, representing risk and opportunity Newcastle has immense potential to beneft built before it is desperately needed. for the Port of Newcastle and our region: from the transitions that are underway. Infrastructure is built for future growth – not because inefciencies become so The business case for a Newcastle • The transition to a decarbonised global bad they negatively impact on economic Container Terminal continues to grow. economy; performance or productivity. It would have widespread benefts for • The transition of the Australian Newcastle, the Hunter and Western and A ULCV terminal in Newcastle would ensure economy from a mining investment Northern NSW – and ultimately the State Australia can participate in the low cost, boom to broader-based growth; and and Nation. high productivity, low emissions future of the global container trade. In the context of • The transition to alternative energy Globally, the container shipping industry solutions. sustainability during a future transition from has been changing the size of its container coal, it would be good for Australia, NSW One clear impact of these transitions is vessels. 33 per cent of new builds will be and the people of the Hunter region. that coal demand will change over time. larger than 11,000 TEU. At the same time, The rest of the world is already planning the global feet mix is dividing between Since the container terminal is not currently accordingly. A common question is “when smaller container vessels and Ultra Large Port of Newcastle’s gift to give, the Port is will demand for coal decline?” Perhaps a Container Vessels (ULCVs). focussed on maximising its unconstrained second question needs to be asked: “will capabilities and realising its unlimited Australia’s existing East Coast container potential. the decline be of a clif or a controlled ports, with their location in the centre of city descent?” The answer to both of these congestion and lack of dedicated freight Newcastle is the port that is ready to questions has signifcant implications for rail and vacant land, are in a situation that host the latest technologies, industry the Port and the future of the Hunter region. cannot materially be changed. Essentially, innovations and provide a step-change in the way that freight is handled in Australia. Port of Newcastle currently handles 166 none of these ports can handle a vessel Growing demand for clean, alternative million tonnes of cargo per year and $29 over 11,000 TEUs. energy sources will provide diversifcation billion of annual trade. Coal represents more Port of Newcastle has none of these issues opportunities that could see Newcastle than 90 per cent of our volumes and over 80 and is the best placed port on Australia’s become a hub for the production and per cent of Port of Newcastle’s revenue. The East Coast to handle modern Ultra Large distribution of energy streams, including Port is the world’s largest coal export port. Container Vessels of more than 14,000 TEU. hydrogen, LNG and solar. While ever there is demand, the port will continue to actively support the efciency We know vessels of this size do not The EPIK Newcastle GasDock project – with and reliability of the Hunter’s world-class currently visit Australia. They do not an estimated direct onshore investment of coal supply chain. as they cannot be accommodated. To up to AUD $250 million* at the Port – is a argue that there is no need for a ULCV great example of the type of opportunity With its unlimited and unconstrained land, terminal in Australia is to ignore the fact available to Newcastle. This project recently received Critical State Signifcant Infrastructure status from the NSW Government. As the port of choice for wind turbine imports, Port of Newcastle is continuing to work hard to support the increase in this trade. A major port digitalisation project has commenced. This will deliver signifcant increases in efcient operations and infrastructure utilisation. It will provide the data to guide the Port in future planning and in our transition to a carbon neutral future. This year, Port of Newcastle marked 220 years of operation. If the port’s potential is realised, imagine what the port will look like in another 220 years.

8 Shipping Australia Limited I Spring / Summer 2019 A PORT OF OPPORTUNITY

Port of Newcastle has been a global trade gateway for more than 220 years, delivering safe, sustainable and effcient logistics solutions for our customers.

Few Australian ports can match Port of Newcastle’s unique capabilities, which include:

• capacity to double trade volumes; • deepwater shipping channel; • connectivity to a world-class supply chain; • available port-side land; • unconstrained freight network; and • berthside connections to the heavy rail network.

Port of Newcastle is embarking on an ambitious diversifcation strategy that better utilises the full capacity of its assets to grow existing trade and establish new, effcient and cost-effective supply chains.

At the heart of our operation are our people, striving every day to create a safe, sustainable and environmentally and socially responsible Port that realises its potential.

+61 2 4908 8200 Level 4, 251 Wharf Road NEWCASTLE NSW 2300 [email protected] portofnewcastle.com.au Spring / Summer 2019 I Shipping Australia Limited 9 PROFILE

GLEN HILTON, managing director and CEO of DP World Australia After 13 years on the road, Hilton is back and ready for action

By ARCHIE BAYVEL

At 49, Glen Hilton has already led the Port of Tanjung Pelepas – at Johore. Glen’s arrival in Johore coincided with the arrival of the frst of these super ships Malaysia’s biggest port, it has a capacity a big life by any standards and and the tremendous growth they brought. well over 11 million TEUs, with plans to all indications are that it’s getting “I learned a lot,” he says, “you can only grow to 100 million TEU. even bigger. run these big ships if you’ve had the “PTP already has 2000 acres of Free Zone experience.” Recently returned to work in Australia land, a fve kilometre berth, and ofers full So how does one gain the experience to after 13 years in South-East Asia, working marine services for all port users,“ Glen handle jobs such as that? mostly for DP, he says, “Looking with says. “Its 57 cranes are clearly visible in They’re a weird mob, the likes of Glen fresh eyes at shipping here, one tends Singapore, just 30 kilometres away across Hilton; straveiging around the world; fve to see it as too expensive and under- the strait. years here, three years there, six years developed. Smack in the centre of the Melaka everywhere, dragging an entourage of wife (Malacca) Straits, it is a keystone port “I see a lot of opportunities to improve and children through third world countries for the massive 3E container vessels Australian infrastructure and I would like to with unlearnable languages. (around the 20,000 TEU mark) serving be part of that.” the transhipment trade all the way from “Expat women are the ones who most Certainly he has experienced managing Yangon through Singapore, to the next need to adapt,” Glen says, “but when a the big time all over South-East Asia, with super ports in Hong Kong and the Pearl family arrives at a new city everyone goes out of their way to welcome and look after his most recent assignment being PTP – River. them. “The availability of domestic help such as maids and nannies, makes settling in a lot easier. Some women have jobs, while others including mine, who has a logistics business, work from home. “One’s children grow up as international people. My son and daughter, for example, speak fuent Spanish as a result of school in the Philippines, during the four-and-a-half years I spent in Manila. “It was my frst regional role, with responsibility for DP business units in Thailand, Indonesia, and Vietnam as well as Manila. Altogether we handled some 3.9 million TEU and had about 3500 employees. “It was challenging at frst but my previous job had been two years as director-general at the major Caribbean transhipment port of Caucedo, at Santa Domingo, capital of the Dominican Republic. With 700 employees, it handled about 1.2 million TEU.

10 Shipping Australia Limited I Spring / Summer 2019 Port of Tanjung Pelepas, Malaysia’s biggest port, with a capacity of more than 11 million TEUs

“Situated on the island of Hispaniola, it here. But my overseas-based boss, one challenging all Australian stevedores. was a developing country, a fantastic Amil Wats, said I needed to see more of “I take enormous confdence in DP World’s place with terrifc beaches and a tropical the world and I was sent to the Dominican decision to assume majority ownership island lifestyle. Republic instead. of our business. It’s a commitment to the “It was 2006, and from a trade perspective “I expected to be back in four years business and the strongest possible vote it was dynamic and well-situated at the to take charge of DP. But I was over- of confdence in our ability to succeed and cross-roads to many countries: A seven- confdent and DPA has grown fast and big, to grow. hour fight to Europe, four hours to New because it’s taken 13 years to achieve my • [A limited partnership led by Citi York, and 90 minutes to Miami. Only dream job. But I feel like it’s been time Infrastructure originally acquired a 75 per Australia is very far away, despite the training to do this job. cent stake for $1.6 billion in December widening of the Panama Canal. “I got to see how it was done. The best as 2010. Financial Review columnist, “During this time, I had spells of weeks well as the very bad. Now I’ve got a fresh Matthew Stevens, has reported estimates in New York exploring how to refnance eye for Australia.” that winning back control cost as little as various projects. It was the time of the Glen Hilton’s predecessor is Paul Scurrah $US330 million, and taking out Citi’s whole World Financial Crisis when, for many – the man who, among many other position, a little more than $US650 million. companies, the world was crashing down. achievements, outlawed swearing by all Two years ago the whole industry earned as little as $25 million from infrastructure “It was a fascinating experience. One day DP’s Australian staf and whose fve-year charges; estimates for this fnancial year you were negotiating with someone and a contract here ended late last year. He now are around $180 million.] week later they’d have disappeared. heads Virgin Airlines. “That said, we must respect the reality “It was one of the great fnancial crises Glen says of him: “Paul drove some of the bottom line, which is telling us we of our time and I learned a lot about how signifcant and important changes simply cannot aford to stand still. money worked. here, particularly around people safety, culture and an unrelenting focus on our “We must make the most of the assets we “Santo Domingo was my frst overseas job customers.. have, leverage the global expertise and and it wasn’t at all the one I had expected. “Safety and customers will always be the scale of DP World which is at our disposal, “I had been general manager for CSX foundation of our businesses and I am build on our strengths and be prepared to World Terminals in Adelaide for more committed to building on Paul’s legacy. consider new ways of working to ensure than fve years when DP World acquired, We are results-oriented and geared for the sustainability and ongoing success of it in February 2005. Before that I’d been growth, which is exciting. DPWA. general manager of Ansett’s International “I have a great passion for our industry cargo handling for four years. “We are operating in an increasingly competitive environment and the and I look forward to bringing my “With DP newly arrived in Australia, and consolidation of the shipping industry, experience to DPWA as we continue me general manager of its new acquisition, surplus capacity of automated competitors to meet the challenges of growing our I expected my next job to be head of DP and higher property costs have been business.”

Spring / Summer 2019 I Shipping Australia Limited 11 WOMEN IN SHIPPING COMMODORE FIONA FREEMAN, Hydrographer of Australia

How a young woman used the Navy to build her character and fnd the job of her dreams

By ARCHIE BAYVEL

“Professionally, I’m at the As the Hydrographer, Fiona is “As a junior ofcer, I was a pinnacle of my career.” Fiona responsible for providing the nautical watchkeeper on the sail training Freeman says, “I am one of charts, electronic navigational charts ship Young Endeavour. Usually it the Navy’s senior ofcers and nautical information which does short training voyages around is used by every ship navigating the coast of Australia but I spent 12 and the frst female to fll the in Australia’s area of charting months with her in 1992, and we position of Hydrographer of responsibility. This is a massive joined the Tall Ships Fleet in Genoa Australia. responsibility covering an area and crossed the Atlantic Ocean of about an eighth of the world’s under sail, to reprise Europeans’ frst ocean area and extending from the voyage to America. “My military title is Director General Antarctic, almost to the equator, of Hydrography, Meteorology and including Papua New Guinea and the “It was an amazing experience. I was Oceanography. That job carries the Solomon Islands. only 23, ft and not scared of heights, rank of Commodore – just one step so enjoyed working aloft. “ below admiral – but it’s the job not “There’s a sense of true fulflment in “I’m 50 now and have been 31 the rank that I’ve always wanted. being at the peak of my profession. I feel really privileged because I have years in the Navy, 15 of them at sea, done lots of diferent things in the including time in command of two Navy on my way to this role, and I’ve vessels. never been disappointed. “Nowadays I’m a surveyor by It’s not just producing charts. specialisation but one of my frst Fiona is also Australia’s delegate junior jobs was as a navigator on a to the International Hydrographic survey ship. It was here I watched Organization. This is where the and helped the surveyors. technical matters and standards “After I left school I was doing a to do with hydrographic surveying teaching degree in Brisbane but and charting are decided. It also decided I needed something more gets political when it comes to exciting. So I went into the local demarcation between areas of Defence recruiting ofce and they national charting responsibility. were interested in me. My father was She has a military role too, rather taken aback when I announced responsible for providing marine what I had done but a few months geospatial information, meteorology, later I was in the Navy. and oceanography to support Navy “Being a female in the Navy was operations. a character-building event for me. “I’ve travelled heaps in the Navy. I’d become part of an organisation Last year to India, where I visited very much bigger than I could have its hydrographic school and spent imagined which, at the time, itself two weeks in Goa. I’ve always was trying to introduce and manage been fascinated by India and I enjoy signifcant change to its workforce. travelling; of course, it is always great Somewhat naively I just viewed to return home to Australia. myself the same as the guys I trained

12 Shipping Australia Limited I Spring / Summer 2019 and worked with and, generally, I was gratitude.” “There are fve other female commodores treated equally . It was early in my career and a couple of rear-admirals in other “Playing sport has always been an though that I realised it was not always important part of my life, so at 50 I’m still branches of Australia’s Navy but I have as simple as that. playing for a competitive hockey team – no expectations of becoming an admiral As a newly qualifed watchkeeper I joined Queanbeyan United. We’re not a Navy because this is the job I always wanted a ship and naturally, as the most junior team but I enjoy the competition and and I hope to continue in for a while yet. watchkeeper and ‘new kid on deck’ the camaraderie of a group outside of “Life is about being content. Success found myself assigned to the ‘guts’ the workplace. It’s a great physical and is intangible and open to perception – watch – midnight ‘til 0400 each night. mental outlet.” After six nights of the Commanding Money? Position? Achievement? I have Ofcer coming up and ‘visiting’ the Asked about the defning moments of her no doubt these can contribute but none bridge during my watch, I asked one of working life, Fiona doesn’t hesitate: of these things really matter if you are not the other ofcers why he would be up • “Joining the Navy, content. I consider myself successful and around at that time every night. I because I feel content. learned it was the frst occasion he had • Deciding to specialise in hydrographic worked with a female at sea and was surveying. Hydrographers like James “People who have the ability to pause struggling with ‘trusting his ship’ to me Cook and Mathew Flinders did amazing when under pressure or stress, tend to without supervision. I am happy to say work and the fact we produce vital and achieve the best outcomes. There can though, that after raising my concern tangible products made it attractive to be great value in pausing – it can result in directly to him and talking through the me. quite diferent outcomes.” issue and reassuring him I was trained as • Whilst in command of HMAS Benalla In private life, Commodore Freeman well as any other watchkeeper, he was realising my father was watching on the is married to Jeremy, a lieutenant- able to enjoy some uninterrupted sleep at wharf as I conned the ship onto its berth colonel communications specialist in night in the following weeks. in my hometown of Brisbane. the Australian Army. She cheerfully “Women in the RAN were only frst “I think I was a pretty reasonable ship points out that whilst the Navy is our posted to seagoing positions in 1986, so handler, but I was really nervous when I senior service, there is certainly no such I was in one of the frst waves to join and saw Dad watching me.” undertake the full training programme. demarcation at home. “I could see that he was so proud of The concept was very new and until the “Jeremy and I never got around to having 1990s we could serve only on auxiliary or me. Looking back, it was an important any children,” she says, “but my family survey vessels. time because Dad had recently been diagnosed with cancer, from which he includes a younger brother Stephen, The Navy has certainly moved forward died three years later.” who is an assistant commissioner on equality since then, with women with Queensland Fire and Emergency now serving in warfare roles and even So, what next for Commodore Freeman? Services.” submarines. “When you become the Hydrographer, So where will Fiona be in 20 years? “It’s a very diferent Navy today from you take on a persona,” she says. “It’s “By then I will have lived longer than when I frst joined. Females can serve a position that people have a general my parents; and Jeremy and I will be anywhere now and we form about 20 per understanding of, and they most cent of the workforce.’ certainly have expectations of the person enjoying ourselves living close to a flling the role. It’s defnitely not about nice beach in Queensland. We have a “I guess a lot of my character had the rank, although the holder of this lovely border collie dog but he is already already been built by my mother’s death specialised role has to be recognised 11, so we will be accompanied by his when I was only 10. Dad re-married and empowered. successor.” quite quickly and that naturally brought challenges to me and also to my stepmother, who had inherited an instant family. “But we all worked it out very well. “My schooling was at San Sisto, then a small all-girls college run by Dominican nuns in Brisbane that gave me the foundations on which to build a good career. “People can go to the best school and have a bad experience, others can go to nondescript schools and turn out great. A headmistress who is a role model and sets expectations makes a diference in those formative years – that is what I had. “It was supportive and encouraged us to participate in sport and other activities and engage with learning. All of which I believe are the foundations of doing wel,l and I look back on San Sisto with

Spring / Summer 2019 I Shipping Australia Limited 13 FEATURE

The future of power In previous Shipping Australia magazines we have just make it a viable and realistic option for Australia. featured the continuing demand for coal (Spring/ Australia has one of the largest recoverable uranium Summer 2017), the rise in Australian LNG production resources in the world and small, safe modular reactors to world number 1 (Autumn/Winter 2018) and initiatives can produce enough power for a medium-sized city in in the shipping industry to reduce the energy use and an area not much bigger that a football feld, with zero greenhouse gas emissions (Autumn/Winter2019). emissions. Isn’t that what we need to save the future of As more frequent climate extremes turn our focus to our planet? Food for thought. how human civilisation can reduce its impact on our planet, it is timely to turn our focus to some alternatives to meeting energy demands. The future of power takes a broader look at the energy option from some very diferent perspectives. If you come to the conclusion that it’s all about solar and wind, then you need to read on as there is much more to it than that. Clean coal certainly has a future, and LNG is cleaner and greener, but what about that taboo word, nuclear? Australia’s anti-nuclear mind-set has its origins in the nuclear disarmament protests of the 1970s and 1980s which inextricably linked nuclear power with nuclear weapons. But maybe it is time to think again? There does not need to be a link but here have been amazing developments in the area of nuclear power that might

14 Shipping Australia Limited I Spring / Summer 2019 FEATURE Beginning of the end for coal… and gas

By A SPECIAL CORRESPONDENT

Although the recently successful of which it has in large amounts. To keep notes that Australia’s solar endowment Liberal National Government, the size of this article manageable, we’ll would fuel Australia’s annual energy look at solar power, touching on wind consumption by about 10,000 times over. and it would appear, Queensland from time-to-time, and energy storage. voters, are in favour of continued Incidentally, wind and solar tend to be So, Australia defnitely has enough solar complementary. When the sun doesn’t energy to fuel all its needs. coal use, the end of coal as a fuel shine the wind does tend to blow. is in sight. And that’s even taking We need to convert that energy into Many people don’t realise just how power. There are several ways to into account currently increasing much energy the sun sends our way. do it but, here, we will look at solar coal usage in India, Korea, Russia, According to the US Energy Information photovoltaics. They’re the familiar blue China and Indonesia. Administration, the entire global and silver gridded panels. consumption of energy on planet Earth in As of January 2019, there were over 2015 was 109,136 terawatt hours. two million photovoltaic installations in And we might even be seeing the Let’s turn that into petajoules: world Australia, with a combined capacity of beginning of the end for natural gas as a energy consumption in 2015 was just over 11.1 gigawatts, according to the fuel too. under 393,000 petajoules a year. The Australian Photovoltaic Institute. The Why? Because, as we’ll show, sun sends Australia about 58 million rate of installation was pretty fat from renewables energy generation and petajoules a year, according the Australian 2001, when there was zero (or next to storage suddenly got cheap and it got Renewable Energy Agency. zero) installations to the end of 2009, good. Or to put it another way, Australia when there were 120,934 kilowatt hours Economies around the world are ditching annually receives about 148 times more of installations in Australia. So roughly coal. There are now several nations that energy from the Sun than is consumed speaking, Australia was installing about are surviving and thriving while doing by humanity each year. ARENA also 1,222 kilowatt hours a month. away with coal. See story on page 19. Australia’s not one of them. But it could be. And it could also greatly reduce the use of petrol, diesel and similar transport fuels. See page 18 for details. The answer is to adopt renewables to generate energy and electrify nearly everything. Australia’s top energy eater is, funnily enough, energy generation (28 per cent of Australia’s energy consumption). It takes a lot of energy to make energy by burning coal. Transport uses the next most energy (27.5 per cent). Manufacturing (17.8 per cent) is in third place. Thereafter the main energy consumers are mining (10.9 per cent); residential users (7.5 per cent) and commercial users (5.6 per cent). Australia can instead meet its energy needs with sunshine, solar panels, wind, windmills, big batteries and seawater. All Solar array of 40 giant mirrors at Carwarp, Victoria

Spring / Summer 2019 I Shipping Australia Limited 15 Then the volume and speed of installations Professor Ken Baldwin, director, Energy As solar plants and wind farms don’t start to take of. By the end of 2017 Change Institute, Australian National generate energy continuously, and demand there was a cumulative total of 7.2 million University, subsequently noted that it is not evenly spread (either geographically kilowatt hours installed. By the end of cost less than $40 per megawatt-hour to or over time), then Australia needs a couple 2018 there were 11.1 million kilowatt hours generate energy from an existing coal- of ways to store energy and distribute installed. The rate of installation over the fred power station. But the cost of wind power. last 12 months was 322,617 kilowatt hours power was $60-70/MWh. So, in one sense, There are many ways to store energy. We’ll a month. Senator Canavan was right, energy from look at batteries and of-river pumped- renewables was not cheaper than energy So not only has the total volume of hydro. from coal, subject to the proviso that installations massively increased, but the Lithium-ion is the current go-to choice of speed at which photovoltaic installations new renewable energy farms were being battery material because it’s very light; it are being installed is increasing too. compared to old and fully depreciated coal- fred plants. carries a much higher charge than other Solar power is on a fast growth curve materials; it tends to hold its charge; tends primarily because solar panels improved in But new coal-fred plants could not not to degrade as much as other types quality and fell in price. compete on price with new renewable of batteries and it doesn’t need a lot in energy farms. The actual price of newly the way of maintenance. And the power Today’s solar panels are efcient. Solar installed wind power in mid-2017 was output of lithium-ion batteries is cheap. cells made by Bell Labs in the 1950’s cheaper than the projected price of $75/ Bloomberg New Energy Finance says the converted sunlight to energy at about six MWh from a new coal-fred power station. cost of lithium-ion batteries was US$187 percent efciency. In the late 1970’s it was But the market’s already moved on, and per megawatt-hour in the frst half of 2018. 13 percent. Now, commercially available Lazards quotes a wholesale price range of the debate is over. In November 2018, solar panels today are about 20 to 22 per US$204 to US$298 per megawatt-hour. cent efcient. investment bank Lazard revealed energy from renewables can be cheaper than Lithium-ion batteries are also used in Energy output from today’s solar cells is energy from coal and gas, regardless of “Tesla’s Big Battery”, otherwise known as cheap too. In 1976, photovoltaic module whether the fossil-fuelled plants are new the Hornsdale Power Reserve, in South prices were (in 2018 US dollars) about or old. Here are Lazard’s numbers in utility Australia, which was built toward the end $79.3 per watt. At the end of 2018 that scale (i.e. farms not rooftops), in US dollars of 2017. fgure was 0.3 cents per watt, according and per megawatt-hour: Wind $29-$56; Although the battery was built by Tesla, to Bloomberg New Energy Finance Solar $40-$46; Gas combined cycle $41- it’s owned by French renewable energy data. That’s a 99.62 per cent price drop. $74; Coal $60-$143. Consultants PV Insights and Energy Trends company Neoen. The battery is adjacent have since reported average prices as low Theoretically, it now costs less (at least in to, and connected to, Neoen’s Hornsdale as 0.27 cents. the US) to build a new wind or solar farm Wind Farm. That’s a 99-turbine installation than it does to carry on burning coal in an with a generation capacity of 315 Even over the last 24 months or so, the existing elderly coal-fred plant. megawatts. cost of renewables-generated energy continued to plummet. Back in July 2017, Consultancy Bloomberg New Energy At the time of construction, several on the well-known public afairs show Q&A, Finance independently worked out its own commentators in the media said the Big then Federal Resources Minister, Senator numbers at the end of 2018 and came up Battery would power tens of thousands Matt Canavan, asserted that renewables with the same conclusion i.e. renewable of homes in South Australia, if the power were not cheaper than coal. energy is cheaper than fossil-fuel energy. blacked out for any reason. But reserve power’s the purpose of the Big Battery. It simply does not have the capacity to store enough energy to power, say, Adelaide. Tesla’s Big Battery at Hornsdale, South Australia The Big Battery ofers storage and power of 100 MW/129 MWh. If the Battery were to discharge at its full rate, the Big Battery could run continuously for about an hour and 17 minutes. There’s a two-fold purpose to the Big Battery: proftable arbitrage and even-more proftable grid-wide power protection. Energy from the wind farm either goes into the local grid or it goes into the battery. When the spot price of electricity is cheap, the Big Battery gets charged up. When electricity is expensive, or if the battery is full, the power is sold into the grid. The Big Battery protects the grid by controlling the frequency of electricity on it. The State Government has the right to 70 megawatts for the frst ten minutes, under certain conditions. That’s useful to help stabilise the frequency of electrical power, which varies all the time. If it gets too high, or too low, then automatic fail safes kick-in to protect the grid and the equipment on it. The Big Battery stores and releases power in super-fast time, which helps keep the frequency just right.

16 Shipping Australia Limited I Spring / Summer 2019 This is known as “Frequency Control Ancillary Services”. These services are also used when there are planned outages, such as maintenance at power plants. They are traditionally provided by gas-fred plants, which have been the power source most able to respond to change. But the Big Battery’s performance is not good news for gas-fred power plant operators. Maintenance was planned for the Heywood Interconnector, which connects the South Australian and Victorian electrical grids, on 14 January 2018. The Big Battery was the battery had a total potential earning turbine as it goes. And the lights stay on. capacity of about A$18 million a year. operational by that date. Pumped hydro requires two reservoirs Euronext-listed Neoen, revealed the of water with an area between two to The Australian Energy Market Operator actual fgure in its 2018 annual report that 20 hectares. The reservoirs can be explained what happened. its “energy sales on the market consist re-purposed mines – plenty of those in primarily of revenues from the HPR storage “Regulation prices peaked at $248/MW Australia. Or, if there is a suitable location, facility (€15.2 million)”. That’s about A$24.5 on this date, compared to an average of a reservoir can be made by digging a giant million dollars in its frst year. Not bad over $9,000/MW during previous Heywood pit in the top of a mountain. If the upper when the construction and installation outages,” AEMO said in its Hornsdale Wind reservoir is located on a hill or mountain costs were about A$50 million. Farm 2 FCAS Trial review of July 2018. near the coast, then the sea can be the That new, lower, Big Battery-induced price So the critics of renewable power are right. lower reservoir. That also gives the beneft was only 2.67 percent of the normal gas- The wind doesn’t always blow, and the sun of using seawater, which is cheap and fred price. doesn’t always shine. But the lights don’t plentiful, as the pumped fuid. go of in South Australia anymore because According to a research study by Professor Consultants, McKinsey, delivered further of the big wind/battery facility at Hornsdale. Andrew Blakers, an engineer with the bad news to operators of gas-fred And it makes a lot of money at the same plants. Their research showed that, since time too. Australian National University, Australia has installation, the Big Battery captured a 55 about 22,000 suitable sites, all of which are per cent share of the FCAS market and More batteries will be built. outside of national parks and urban areas. They’re also located in all the States and caused a 90 per cent drop in prices in “We see $548 billion being invested in Territories. Australia efectively has a near- about four months. battery capacity by 2050, two thirds unlimited supply of suitable sites. Industry consultants Aurecon have since of that at the grid level and one third estimated that the Big Battery has saved installed behind the meter, by households Blakers’ 2017 research showed that taxpayers about A$40 million a year in and businesses. The arrival of cheap Australia needs about 450 gigawatt typical FCAS costs. battery storage will mean that it becomes hours of storage capability to power a increasingly possible to fnesse the delivery 100 per cent renewable grid. Malcolm Another key reason for the installation of of electricity from wind and solar,” says Turnbull’s Snowy 2.0, which will connect the Big Battery is to prevent what’s called Bloomberg’s New Energy Finance Outlook two reservoirs in the mountains via series “load-shedding”. That’s when rolling 2018. of tunnels, is a pumped-hydro system. blackouts are deliberately caused by the Snowy 2.0 ofers over 350 gigawatt-hours, In fact, there’s one about to be built as part energy grid companies. Engineers hope to Blakers says. So, on those fgures alone, of a giant 7,000 square kilometre project in prevent the network from falling over when Snowy 2.0 accounts for about 78 per cent Western Australia. The Asian Renewable there’s more demand for energy than there of the forecast required storage capacity is supply. Energy Hub near Port Hedland will feature alone. The project got the green light in over 11 gigawatts of generating capacity the fnal investment decision in February Yet another reason for the Big Battery is and will have 800MW/1GWh of storage this year. And from a pro-coal coalition the hope that it will provide protection from power. Just a reminder, the Big Battery – administration no less. unexpected incidents. Owner, Neoen, says long touted as one of the world’s biggest – that the new installation has prevented is 100 MW/129 MWh. So the new Western Pumped hydro systems less mighty than supply-demand incident literally thousands Australia battery will be almost an order of Snowy 2.0 will ofer between fve to 25 of times in its frst year of operation. magnitude greater than the South Australia hours of maximum power, depending on About 100 of those times were “serious”, battery. the size of the reservoirs, Blakers reckons. according to Neoen. Such systems can reach full power For longer-term storage, and for power For example, in December 2017, the generation in tens of seconds to minutes, in delivery to huge numbers of people, Loy Yang A coal-fred power station the event of an incident (and batteries can Australia is going to need something with a unexpectedly and metaphorically fell over. fll the gap between the time of the incident bit more weight to it. Within milliseconds the Big Battery (about to pumped hydro reaching full power). 1,000 kilometres distant) added power to, Of-river pumped hydro is the answer. It Energy efciency ranges from about 60 per and stabilised, the grid. is old, simple, reliable and environmentally cent for older pumped-hydro systems to friendly technology. “South Australia, although cut of from the as much as 80 per cent for new systems, grid, didn’t lose power as HPR provided When there is plenty of energy being according to Chi-Jen Yang of the Center on frequency support to steady the grid,” generated by solar or wind, then some Global Change, Duke University in the US. Neoen said in a statement. power can be used to pump water uphill. Of-river pumped-hydro should easily last When power is needed, and neither solar for 50 to 100 years. The 350 or so systems The battery has proven itself to be a serious nor wind farm can supply, then the hydro around the world in existence, already money-making machine. operator opens the sluice. Water falls account for 181,190 megawatts of stored Based on the frst six months of operation, down the pipe into the lower reservoir energy, which is about 96.49 per cent (or specialist media outlets estimated that turning an electrical power-generating more) of all long-term energy storage, as

Spring / Summer 2019 I Shipping Australia Limited 17 reported by the US Department of Energy global energy storage database. So, what does it all cost? Blakers puts the additional cost (in 2017) of balancing renewable energy supply with demand, at an hourly fgure of A$25–30/MWh. An hourly balanced integrated generation and storage system would have had a levelised cost of electricity of A$93 MWh in 2017. And, as we have seen, the costs of renewables and have plummeted since then. Energy economics analyst, Tifeen Brandily of Bloomberg New Energy Finance, Wind farms at York Peninsula, South Australia comments that, “Solar PV and onshore wind have won the race to be the cheapest sources of new ‘bulk generation’ in most countries, but the encroachment of clean technologies is now going well beyond that, Renewables v threatening the balancing role that gas-fred plant operators, in particular, have been hoping to play.” nuclear? Looking forward, Professors Blakers and Baldwin, are estimating that renewables could drive coal out of the Australian Nuclear plants can easily produce the energy humanity needs. energy market by the early 2030’s. But is nuclear better than renewables? Readers of this publication will no doubt quickly point out that Australia has two Take, for example, France. France the plant will likely cost A$13.75 billion to types of coal, steel-making coal and energy generates most of its electricity from build. Let’s now look at the largest solar generating coal, and most of it is exported. nuclear. But French support for nuclear plant in Australia, which is at Bungala And it could be argued that whether has plummeted. In 2013, French public in South Australia. It took about two Australia burns or does not burn coal support for nuclear energy generation years to build a 275 MW facility for about doesn’t really matter. was 67 per cent in favour, according to A$454 million. a BVA-Le Parisien survey. But, by 2018, So, six new South Australian solar farms But there are alternative ways to make steel support for nuclear had dropped to 47 would equal the energy generated by without coking-coal, although we haven’t per cent, according to an Odoxa survey. gone into it here. And if renewables are one new Finnish nuclear power plant, at pushing thermal coal out of the Australian France has a target to reduce nuclear about fve times less cost (a total of about energy-generation market, what’s to stop energy generation from current levels, to A$2.64 billion). And that’s not taking that from happening elsewhere in the about 50 per cent of total generation by into account decommissioning costs. If world? 2035. those six solar plants were built back-to- back, they would have been fnished two Nuclear has lots of drawbacks that Well, nothing, really. There are predictions years ago. And as each solar farm was renewables simply do not. Nuclear that even the really big coal-using completed it would have added energy plants have the possibility of catastrophic countries, China and India, will opt for into the grid, whereas Finland would have failure. There are radiation safety issues renewables over fossil fuels. Bloomberg to wait until the end of the 15 year build at generating facilities, in the supply chain New Energy Finance’s 2018 outlook period before it got a single joule out of and at mines. Nuclear creates toxic reckons that Chinese coal use will peak by its shiny new nuclear plant. waste. And it needs a lot of cash put 2030, as renewables and batteries begin to away for decommissioning. Of course, the solar plants wouldn’t have dominate. India, which has been building been built back to back. They’d probably Overall, renewables are also just a better a lot of coal-fred power stations, has the be built somewhat concurrently. So they deal than nuclear. The cost of electricity potential for the cheapest new wind and would probably all have been fnished, from renewables is far cheaper than the solar energy on the planet. “This poses assuming slippage time, about a decade cost from nuclear plants. Investment a profound orthodoxy there that coal is ago. forever king,” Bloomberg New Energy bank Lazard provides some numbers in Finance says. It forecasts renewables its 2018 analysis. On a mean average, Nuclear is simply not competitive domination in India by 2050. wind and solar energy costs about $42 anymore. Even the nuclear industry per megawatt hour. Nuclear costs about thinks so. The International Atomic What does this all mean for the shipping $151 per megawatt hour. Energy from Energy Agency wrote, in its September industry? Well, sooner or later, thermal renewables is about 3.6 times cheaper 2018 projections, “Nuclear power’s coal as a seaborne trade-able commodity than from nuclear. electricity generating capacity risks is dead. The only real questions left are shrinking in the coming decades as aging Let’s look at build time and construction “when?” and “who will be left holding the reactors are retired and the industry costs. stranded assets?”. struggles with reduced competitiveness… Construction started in 2005 at Finland’s Overall, the new projections suggest that A further intriguing question is whether 1,600 MW Olkiluoto Nuclear Power Plant nuclear power may struggle to maintain the same will happen to gas too. On the and commercial operations are forecast its current place in the world’s energy current numbers, the most likely answer is to start in 2020. That’s 15 years! And mix.” “probably, yes”.

18 Shipping Australia Limited I Spring / Summer 2019 FEATURE Other countries can change, why not Australia?

It is worth noting that many countries rely heavily on nuclear power. Nuclear is the world’s second largest source of low-carbon power (30 per cent of the total in 2016) [World Nuclear Association (WNA)].

There are several countries now that people, according to Government agency Australia. They have similar socio-political generate only a little, or no energy, by Statistics Belgium. cultures of largely British descent. They burning coal. These include Belgium, are both federal states that follow the Today, the value of Belgium’s economy is Cyprus, France, Iceland, Lithuania, Westminster system of government. They estimated by the IMF to stand at about Luxembourg, Malta, New Zealand, Norway, both have large, sparsely populated $572.1 billion international dollars. Its landmasses and are both primary resource Sweden, Switzerland and Tajikistan, to GDP per head (PPP) is $49,877. It has name a few. an unemployment rate of 6.76 per cent and export-driven economies. They have similar sized economies (in total and per Some of those countries, such as Belgium, and a population of about 11.38 million head), similar unemployment rates and total rely on a lot of gas. Others, such as people. Infation (average consumer prices; populations. Lithuania, Sweden, France, Tajikistan, New percentage change) has moved about from Zealand and Iceland don’t use much coal 2016 to now year-from-year in a range Let’s also look at some coal-dodging or gas at all. In November 2018, WNA between 1.77 per cent to 2.22 per cent. countries that, when grouped together, have statistics showed that France was the So, whatever else quitting coal may or may some similarities to Australia. The group of highest user of nuclear power, at 78.1 per not have done in Belgium, it certainly hasn’t seven low coal-using countries (see table cent. France is also the world’s largest net harmed the country’s economy. below) together have, in aggregate, a total exporter of electricity, due to the low cost gross domestic product, a GDP per head, of generation. Lithuania uses 72.1 per cent Of course, Belgium is not Australia. unemployment rate and population, that nuclear power and Sweden - 35 per cent Belgium is not an exporter in the same way are comparable to Australia. A couple of (WNA January 2018). Tajikistan and New as Australia. They have diferent climates, countries on the list have hot dry climates resource base, economic set-up and so on. Zealand use mainly hydro-electric power. too. So let’s look at some diferent countries and Other countries are doing away with coal. compare. These two comparators, Canada and The UK, for instance, just went a whole the aggregate group of seven low-coal Canada is phasing out coal by 2030. But week without burning coal. Admittedly, coal using countries, are well on the way to Canada relies on nuclear power for 15 per only accounts for about 9 per cent of power ditching coal. If they can do it, there are cent of it electricity. generation in the UK (less than half the 2015 few reasons why Australia cannot, even fgure, due to doubling of the carbon price The climates of Canada and Australia are without the support of nuclear energy, foor to £18). Other gross energy production notably diferent. Canada is probably given our potential for renewable power comprised 21 per cent nuclear, 42 per the country that is most comparable to generation. cent from gas, with 24.5 per cent from renewables. By 2025 the electricity power Unemployment GDP PPP $ billion GDP/head PPP $ 2018/2019 Pop system will operate with zero carbon. rate

Let’s look at Belgium. Belgium is a Australia 1,318 52,373 5.3 25,359,000 physically small country, but it has a Canada 1,837 49,651 5.8 37,000,000 surprisingly large economy. It was formerly a heavy user of coal but the country shut its Low Coal Group Total Average Average Total last coal-fred power station in March 2016. 1,336 56,560 5.0 25,109,062 That’s just a little over three years ago. Belgium is still heavily dependent on gas as a fuel though. Belgium uses 51 per cent Countries that comprise the low- or no-coal using group nuclear and 26 per cent natural gas (WNA Unemployment GDP PPP $ billion GDP/head PPP $ 2018/2019 Pop September 2018). rate

So, after coal shut down, what happened? Belgium 551 48,245 5.9 11,463,692

Back in late 2015, the value of Belgium’s Cyprus 35 39,973 8.4 864,200 total economy stood at $496.70 billion international dollars, according to Iceland 19 55,917 2.7 358,780 the International Monetary Fund. An Lithuania 97 34,826 6.3 2,790,472 “international dollar” is a hypothetical Luxembourg 64 106,705 5.0 613,894 currency used by economists for country- comparison purposes. Belgium had an Malta 21 45,606 4.0 475,701 unemployment rate of 8.52 per cent and Switzerland 548 64,649 2.6 8,542,323 a gross domestic product per head (parity of purchasing power basis) of just under Notes: Totals and averages do not include Australia; dollar signs refer to IMF $44,201. On 1 January 2016, Belgium had “international dollars” a population of just under 11.3 million Sources: IMF; UN; National “population clock”; ofcial fgures/estimates

Spring / Summer 2019 I Shipping Australia Limited 19 UK SMR technology envisaged by the Rolls-Royce-led UK consortium can produce nuclear power in a new way anywhere in the world. It solves FEATURE the conundrum of how to create afordable energy, and more of it, with a lower carbon footprint Source: https://www.rolls-royce.com/products-and-services/nuclear/small-modular-reactors.aspx#/

The case for nuclear power – reliable, afordable and low carbon electricity

By JOHN HARRIES, Australian Nuclear Association

Nuclear power is a major generator of electricity in most advanced and many developing countries, where it is considered an essential part of their electricity supply. Nuclear power plants are very reliable, operating at a high capacity factor of 81.5 per cent – global average 2017 – providing dispatchable electricity day and night.

Nuclear power is a very well- construction and 111 nuclear clean electricity than wind and solar established technology, with over power reactors on order or planned combined. In the European Union 17,000 power reactor-years of with approvals, funding or major and USA, nuclear produces more low commercial operation since the frst commitment in place. In 2018, carbon electricity than hydro. commercial power reactors started in nuclear provided 10.3 per cent of the the 1950s. global electricity and about 18 per Low carbon electricity - cent of the electricity of advanced renewables and nuclear Currently, there are 444 nuclear economies. power plants connected to the grid Decarbonising our electricity system in 30 countries, with an additional In 2018, nuclear power plants around will need all low carbon technologies 54 nuclear power reactors under the world produced 50 per cent more – wind, solar, hydro and nuclear –

20 Shipping Australia Limited I Spring / Summer 2019 to work together. A cost-efective technologies and found that nuclear 2020, with the last plant in 2023. low carbon system could consist of power is competitive with fossil fuel Safety a sizeable share of wind and solar, and renewables. The long potential an at least equally sizeable share of operating life and low operating costs Even including the major accidents dispatchable zero carbon technologies of nuclear ofset high construction in Chernobyl in 1986 and Fukushima (nuclear and hydro) and a residual costs. The construction cost of nuclear in 2011, nuclear power remains amount of gas-fred capacity to provide power reactors depends on many among the safest of all generation additional fexibility alongside storage factors including the type of reactor, technologies based on lives lost per and demand management, and the whether it is frst or nth of a kind, and unit of electricity produced, over the 60 expansion of interconnectors. the country where the reactor is being years of commercial operation. built. Wind and solar depend on backup The Chernobyl accident is the only power and or storage, which needs Recent builds have highlighted the high accident in the history of nuclear power to cover at least several days. This costs of frst-of-a-kind new reactors backup is usually provided by open built in Western Europe (Finland and generation in which members of the cycle gas plants where there is France) and USA, compared with public are known to have been killed limited availability of hydro. The cost reactors built in Asia, where there is a by radiation; and that the Chernobyl of storage and backup power must well-established supply chain and a reactor type would not have been be included when assessing the continuous series of reactors are being licenced outside the former Soviet economics of variable renewables like built. China’s average overnight costs Union. solar and wind. for building reactors are more than a Reactor designs are continually being third less than that in the EU. The use of nuclear enables countries improved, based on the operating with nuclear to achieve low carbon The time to build a reactor has a major experience of current reactors. emissions from electricity generation. bearing on costs of reactors. Although Reactors suitable for Australia For example, nuclear supplied 72 per the construction of some frst-of-a- will already have been licensed cent of electricity in 2016 in France, kind reactors now nearing completion overseas and will be supported by an which had an electrical generation in Finland, France and the USA have extensive safety analysis which will be carbon emission intensity of 58 g CO2/ cost much more than planned, the reassessed by the Australian regulator. kWh compared to 440 gCO2/kWh overall conclusion of the International for its neighbour Germany, which has Energy Agency study stands - in most Nuclear power - viable option for a similar sized electricity grid and is countries nuclear is economically Australia closing nuclear plants. competitive as a generator of Options for Australia would be 1000 electricity. The case for nuclear Finland currently has four operating MWe power reactors like those recently reactors (total 2700 MWe) and a soon The United Arab Emirates was a built overseas, or small modular to be operational new 1600 MWe country with no nuclear power when it reactors factory built and transported reactor. In 2016, electricity production decided in 2008 to introduce nuclear to site. power – reliable, in Finland was 34 per cent nuclear and power. UAE selected a bid from a 23 per cent hydro and its emission Korean Electric Power Company Nuclear is a viable option to add intensity for electricity was 112 g CO2/ (KEPCO)-led consortium in December reliability to the Australian electricity kWh. 2009, for four Korean-designed system and reduce carbon emissions. afordable and low APR1400 reactors at Barakah in It is important that the legislative Cost competitive the United Arab Emirates. The frst prohibitions be removed so that The International Energy Agency of these four 1400 MWe plants is nuclear can be properly assessed and carbon electricity analysed diferent electricity expected to be connected to the grid in considered on its merits.

By JOHN HARRIES, Australian Nuclear Association

Spring / Summer 2019 I Shipping Australia Limited 21 FEATURE

Starting a conversation on nuclear power

By SUBMARINE INSTITUTE OF AUSTRALIA*

In the current Australian political environment, it would be much easier to discuss ‘fssion generated, steam powered, propulsion’ than to canvass ‘nuclear power’, although they mean the same. The word ‘nuclear’ has been demonised in Australia, and there has been a failure of leadership to provide balance to what little public debate occurs on the subject. Over the past 60 years there have been several government reviews into The Federal Government has made What then, is the strategic the possibility of developing a commitment to build 12 French- signifcance of submarines? The Indo-Pacifc region is now home to nuclear power to generate designed Attack class submarines in Adelaide, as replacements for the more than 50 per cent of the world’s electricity. Although those reviews six ageing Collins class submarines. submarines. It is also a region where have been generally supportive of The new submarines will be about two thirds of our exports nuclear power, the construction of conventionally powered – meaning and imports are carried. This is in a nuclear power station has never diesel. The 2016 Defence White Australia’s area of interest, albeit it is also the area of interest of a number eventuated. Of the G20 nations, Paper called for these submarines to be ‘regionally superior submarines of nations, large and small. These Australia is one of only three that with a high degree of interoperability nations, who hold claims to this strategic area, are also the ones who does not derive some electrical with the United States’. power from nuclear energy. As a have invested in submarines. Why? The consideration of nuclear power Because submarines are the only further point of diference, Australia for submarines is a matter of platform capable of independent has legislation prohibiting nuclear interest to the Submarine Institute operation in an area where that power. We are alone in imposing of Australia (SIA), the nation’s nation may not control the sea or air. such a limitation. foremost organisation for promoting It is that capability which provides interest in submarines. The SIA government with options for strategic has over 400 members from around consideration. the world. The SIA Executive Operating in this environment is Committee comprises ofce-bearers not without its challenges. The and members from many major size and geographical location of defence industry companies. The Australia impose long transit times Institute hosts an annual conference upon Australia’s submarines. The to consider strategic issues as they speed and endurance ofered by relate to submarines and emerging nuclear-powered submarines are technology. tailor-made for these conditions, as

22 Shipping Australia Limited I Spring / Summer 2019 Royal Australian Navy Collins Class Submarines, HMAS Collins, HMAS Farncomb, HMAS Dechaineux and HMAS Sheean sail in formation while transiting through Cockburn Sound, Western Australia, in February 2019. Image: © Commonwealth of Australia 2019

the time taken to make those transits One of the primary reasons frequently the obstacles, challenges and and be available in areas of interest claimed as to why the Navy has not opportunities for an Australian in our region, are much reduced embraced nuclear power to this point, nuclear industry that might support when compared to a conventionally is the absence of a nuclear industry both civil and defence needs for powered submarine. Nuclear in Australia. It appears that whenever nuclear power. propulsion allows a submarine to nuclear power is considered, the proceed at high speed without arguments associated with the need endurance constraints, and frees for new forms of electricity generation it from having to expose itself to and Defence needs, such as recharge its batteries. As the fgure submarine propulsion, are considered shows, the major part of the nuclear in isolation. If the civilian and naval propulsion plant is steam-driven needs were considered holistically turbines and gearing, a technology however, the case for a local nuclear that has been well used in all navies industry might be stronger and more for over a century now, and on coherent. which Australia has extensive past experience. To assist in promoting this conversation, the SIA is holding In the interest of promoting a one day seminar in Canberra discussion on strategic submarine on 2 October (Details are at issues, the SIA is promoting debate the SIA website:https://www. for serious consideration be given submarineinstitute.com/events/ to nuclear propulsion for the class Nuclear-Seminar/. of submarines following on from the Attack Class. Any future planning It is an important conversation for a nuclear submarine is likely to and one we need to have. It take decades, and any submarine is a conversation about why capability gap must be avoided at all nuclear power has not gained *The Submarine Institute of Australia was costs. It must be stressed that the traction in a country which holds created to promote informed discussion and SIA fully supports proceeding with the world’s largest deposits of research in the felds of submarine operations, engineering, history and commercial sub-sea the conventional-powered Attack economically recoverable uranium. engineering - otherwise known as submarine class submarines. The conversation will look into matters.

Spring / Summer 2019 I Shipping Australia Limited 23 WORLD MARITIME DAY

Empowering women in the maritime community - Navy leading the way

By COMMODORE ROD NAIRN AM (retired)

IMO World Maritime Day is It is about time that the Royal Australian operating safely. Navy received some well-deserved credit celebrated on 26 September. Introducing women into this environment for the amazingly positive steps that it would be a challenge. On average, they This year’s theme is Empowering has taken towards achieving gender physically could not carry the same equality. In the last 30 years, the RAN has Women in the Maritime amount of weight, so we would have to transformed its seagoing workforce from Community, I have been send more people on each team, take a bastion of blokes, to gender equality in longer to establish shore control and impressed by the way that the almost every role. Royal Australia Navy has led the reduce the ship’s operational efciency. The Navy embarked on the journey of The alternative would be to send the men way, in Australia at least, towards equal opportunity out of necessity. Even ashore to do the heavy lifting and keep the achieving gender equality in its in the 1980s, it was clear that as an women onboard to operate the ship. But sea-going workforce. employer trying to attract thousands this would create a two-class structure. I of seafarers to work some demanding was NOT a fan. routines (what could be categorised as Female ofcers were frst posted to sea in ‘fy in fy out without the out’) they could 1987. The frst female junior sailors were no longer ignore half the population of posted to the inshore survey vessels HMA Australia. Women had served in the Navy Ships Paluma and Mermaid. for years, they just hadn’t been allowed to serve at sea, and in an organisation all It seems that timing is everything, and about sending ships and men to sea, that serendipitously, technology changes immediately classifed women as second- aligned perfectly with the posting of class support staf. But things were about females to sea. By the late 1980s GPS to change. had replaced radio fxing systems and there was no longer a requirement for The strategic decision was made to send multiple shore stations. Ship deployable, women to sea in non-combat vessels, bottom mounted tide gauges further in the mid-1980s. It took a few years to reduced the need for burley blokes heavy implement, new ships could be designed lifting. The operational argument against to accommodate both sexes, but existing women at sea had vanished and the scene ships would need to be modifed. was set for change. In 1985, I was serving as executive I returned to HMAS Flinders as ofcer in HMAS Flinders, responsible commanding ofcer in 1993 and three of for the management and efcient survey our ofcers were female, unfortunately operations of a small 50 metre survey limitations in the ship’s design couldn’t ship, based in Cairns, with a crew of accommodate females in the other ranks. 45. In these pre-GPS days, to achieve By then the inshore survey vessels HMA the accurate positioning for surveying, Ships Paluma and Mermaid had proven required radio transmitters to be set up that the closer to 50/50 the gender mix at multiple locations ashore. Setting up of the crew, the more smoothly the ship these stations was a tough job, carrying operates, and the less gender related loads of heavy equipment, through tropical difculties experienced. scrub to the top of the highest peak: batteries, antenna, 45 kilogram gas bottles After the successful introduction of mixed and gas generators, transmitters and of crewing in survey ships, Navy moved course, ground clearing equipment. For quickly to remove barriers and expand each station I would use a team of six or female career opportunities. Females were eight men, each carrying about 30 or 35 posted to patrol boats and major surface kilograms, and we could have three teams combatants. Then in 1998 the door ashore at once, and still keep the ship opened to females serving in submarines.

24 Shipping Australia Limited I Spring / Summer 2019 20 years - Women in submarines

In 1998, the Royal Australian Navy became the fourth Navy in the world to permit women to serve on board submarines. The frst female submariners began their training in June 1998, with the frst qualifying mid-1999.

For most people in the Submarine Branch achievement, Petty Ofcer Kerry Cousins today, women have simply always been a was a fnalist in the Women in Defence part of submarine service. The contribution Awards 2019. A highly motivated, of women has been overwhelmingly inspirational Senior Sailor dedicated positive: they have served at sea and to the advancement of the interests of ashore; as sailors, engineers, warfare the submarine enterprise, PO Cousins ofcers and technicians, and this year is a pioneer female in the submarine marks 20 years since the frst female community. As one of the frst women received her ‘dolphins’. serving in Australia’s strategic deterrent, Kerry has been inspirational to other There have been many achievements to women considering a career in submarines. date, from both sailors and ofcers alike, The last bastion of male domination is with two of the most recent being the frst now about to be breached. As this edition ever female executive ofcer of a Royal goes to print Navy has opened the doors Australian Navy submarine, who was to females to enter the clearance diver awarded the Conspicuous Service Medal category – those that are frst in harm’s as part of the Australia Day 2018 Honours way – responsible for bomb disposal and List. Maritime Warfare Ofcer, Submarines Navy’s feeder category for the elite Special For the RAN, discrimination in employment roles for males and females is consigned to Commander Susan Harris, was recognised Air Service. for exceptional leadership, dedication history and professional knowledge, as both a The Royal Australian Navy doesn’t need to blow its own trumpet over promoting Navy what it is like to be a female serving at workforce specialist and submariner. women in the maritime, it is now business sea, they will probably wonder why you are In addition to Commander Harris’ as usual. If you ask a woman serving in the asking.

We’re on the verge of unprecedented opportunity, readying Queensland to take full advantage of the future.

www.gpcl.com.au | 1800 243 GPC

Shipping Australia October Advert Option 4 .indd 1 1/10/2019 12:38:50 PM Spring / Summer 2019 I Shipping Australia Limited 25 SURFACE TRANSPORT

Transport fuel security through electrifcation

By A SPECIAL CORRESPONDENT

Of late, there’s been a lot of 2017, according to Dr Mortimore, a greater ranges. road transport economist with Grifth Electric trucks with a big range can be worry in the national media University. about fuel security. The fear bought here in Australia too. Melbourne- There are a few reasons why Australians based SEA Electric makes several is that Australia does not have are not buying electric cars. We’ll just diferent models. Its biggest ofering enough liquid fuel stocks to look at the two that are commonly is the SEA Drive 180b. It has an upper cover demand in the event of an voiced. One is a perceived lack of gross vehicle mass of 26 tons, a range of range and the other is a perceived lack up to 300 kilometres on a single charge, international emergency. The of charging infrastructure. But there continuous power of 225kW and torque Maritime Union of Australia has are increasingly more charging points in of 3,500 newton metres. We’ll translate also been campaigning on the Australia – they can be found in the car that for you. It’s a big truck that can pull parks of the major supermarkets. a heavy load over a big distance on a idea that Australia should have single charge. a Canberra-controlled domestic Meanwhile, the various State and Federal governments are backing fast-charging Incidentally, electric vehicles are powerful ocean tanker feet, ready to carry highways around the country. For too, despite recent claims from the Prime Australia-destination liquid fuels, example, the Queensland Palaszcuk Minister, Scott Morrison, that they can’t in the event of an international Government unveiled its “electric vehicle pull a trailer. Owing to the huge amount super highway,” a network of charging of power direct from the battery straight emergency. stations along the Queensland coast, to the wheels, electric vehicles can back in June 2017. Drivers probably generate a huge amount of torque. Hop onto YouTube and you can fnd movies These concerns are understandable. But won’t be waiting too long during the of Tesla cars towing Qantas planes, for they’re probably now irrelevant. charge-up time either. Drivers in the US can plug into superchargers, which instance. Electric vehicles do not need liquid fuel. will charge a battery from near fat up to Although the upfront cost of electric They require power from sunlight. And about 50 per cent in ten minutes. Tesla vehicles is greater than the cost of it’s hard to conceive of a fuel source has built a network of them across the combustion-powered cars or trucks, the more secure from enemy action than US. cost of fuel needs to be considered. For sunlight. A perceived lack of range, i.e. how example, energy retailer AGL was ofering And electric vehicles will surely push far a car can drive on a single charge, rates of one dollar a day to recharge fossil-fuelled vehicles out of the may be just that: perceived. Roy electric cars. That gives electric cars a Australian market before too long. Morgan Research says that the average fuel bill of $365 a year. Multiply that up Australian car driver will drive 14,000 km by the ten years or so that Australians The Australian Bureau of Statistics a year. Divide by 365 and it works out at seem to keep cars and you’re looking said there were 19.2 million registered about 38 kilometres a day. at a ten-year fuel bill of $3,650 in motor vehicles in Australia, at the end of total. Good luck trying to fnd a petrol January 2018. Those vehicles are nearly Freight trucks do a lot more driving than or diesel car that will beat that. And all fossil-fuel powered. that. A recent study, using in-truck electric vehicles cost less in repairs and gathered data, by Transport Certifcation maintenance because they are much About 74 per cent of Australian vehicles Australia and the Australian Road simpler machines than combustion- are passenger vehicles, and just under 20 Transport Suppliers Association, found engine vehicles. per cent are freight carrying vehicles (light that heavy freight vehicles average about commercial vans, light trucks, heavy rigid Given the overwhelming cost and 158 kilometres each journey. trucks and articulated trucks). The other performance advantage of electric six per cent are vehicles of various types, Electric vehicles can easily cover either of cars and trucks, it’s inevitable, barring such as camper vans, motorbikes, buses these distances on a single charge. some unforeseen incident or bizarre and so on. We’ll ignore them. government action, that electric cars will For instance, the Hyundai Ioniq Electric push petrol and diesel cars out of the Figures from the ABS show that car can be bought in Australia for about market. Australians are currently not buying $44,000, according to Carsguide. It electric cars. But consumers overseas comes with a range of 230 kilometres And when that happens, there will be are. More than 50 per cent of consumers and a full charging time of fve hours. little need to worry about our liquid fuel in Norway bought an electric car in There are other electric cars with much stocks. We won’t need them anyway.

26 Shipping Australia Limited I Spring / Summer 2019 Harwood Marine www.harwoodmarine.com.au ph:+61418666598 e: [email protected] GILLS (Gas Injected Liquid Lubrication System) HULL Friction Reduction SHIP Technology - Reduce Fuel/CO2

Penguins hold their feathers down Fish use Turbulence Modulation when surfacing to create microbubbles. Inspired by Nature

How Does GILLS Work? – GILLS Technology reduces the drag of a ship’s hull using small micro- bubbles (~0.5 mm) and Turbulence Modulation. – Atmospheric air is compressed to match the hydrostatic pressure along the hull at different depths below the water surface – Compression costs to match hydrostatic pressure on hull is minor compared to HFO savings – Air is released via angled hydrofoils with air introducers – As the ship moves forward, it drives atmospheric air into the water creating micro-bubbles – Microbubble generation is by Kelvin Helmholtz Instability – Full-scale tests have shown that, with correct operation, the device can produce a net power saving of 5–15% for ships GILLS Vortex Generator, mixing chamber, ship side.

INCOTERMS 2020

Trade wars and refning

transactions: reducing 2018 DCN SHIPPING & MARITIME your risks INDUSTRY AWARDS

By ANDREW WILLCOCKS, associate director, International Chamber of FREIGHT Commerce Australia, ACCI FORWARDER OF Had Adam Smith been alive today regulations, and a rule-based legal misunderstandings and risk, and enhance he would have probably delighted certainty that survives across multiple their ability to agree. jurisdictions. in our increasing technological One such set of tools are the Incoterms® THE YEAR capacity to circulate goods, However, goods trade now faces massive rules, published by the global rule-setting and unexpected regulatory obstruction. organisation the International Chamber knowledge, and services around This trend has been ignited by trade of Commerce (ICC) since 1936. The new the world. fows that challenge traditional regulatory 2020 rules are about to be released in LINKING AUSTRALIA TO structures, especially for economies that September 2019. were constitutionalised during times Much has been written about the 18th The ICC Incoterms® are rules for of domestic and imperial – rather than THE WORLD AND THE Century Scottish philosopher’s laissez- interpreting standard three-letter ‘trade faire economic theory. In Wealth of contemporary international – trade. terms’ used by importers, exporters, Nations he proposed that transactions As a consequence, our cross-border lawyers, transporters and insurers across WORLD TO AUSTRALIA between private parties could operate trading problems are multiplying: the world for international and domestic best when they were largely free from Brexit, the China-US trade skirmish, the sale contracts that allocate certain government intervention. disruptive Uber-isation of commerce, and obligations, costs and risks between the seller and the buyer. They have become This notion underpinned the beginnings of an infux of behind-the-border national IMPORTS crucial for understanding how – and what our economic thinking about comparative barriers are all causing delay and added – each party agrees in a transaction. advantage, and spurred on the increasing cost to shipments. EXPORTS circulation of global trade into the modern Meanwhile, national leaders and their For example, if you are a trader, lawyer, day. regulators grapple with the realpolitik of a insurer, or transporter reading this article, but you don’t know what the ICC DOOR-TO-DOOR However, little popular attention has goods and services trade that dashes in Incoterms® 2020 version of CIP, DDP, been paid to the reliance of Smith’s and out of nations via our technologically or CFR means, you are at serious risk of ideas on exchangeability. Namely, that super-charged supply chains. More than 100 Offices Worldwide having a misunderstanding about your in order transact trade, an exchange of National regulatory hammers have goods trade, which could in turn cause terms needs to happen, exchanges of Over 1400 Ports begun to be used on international serious loss. information need to be trusted, and the commercial walnuts, and the unintended Covering 31 Countries path to a commercial agreement and its consequences are looming large across For this reason, the Australian Chamber attached goods must be largely free from traditionally stable markets. of Commerce and Industry is proud to regulatory obstruction. launch the important new ICC Incoterms® Shipping to & from Sydney/Brisbane What are shippers and traders to do to 2020 rules in Australia, which are now Smith would have marvelled at our in such an uncertain environment? The available so that businesses can prepare Melbourne/Fremantle/Adelaide unobstructed systems; the internet, our answer: batten down the hatches and for the changes prior to the entry into constellation of digital communications, ensure your trading transactions are force of the new rules from 1 January international containerised shipping, watertight. 2020. BY SEA OR AIR standardised international sales contracts, distributed ledger and blockchain, as International institutions have continued We encourage all businesses engaged in well as the determination of the maritime to make progress in recent decades on trade to obtain the new ICC Incoterms® WE'RE YOU'RE TEAM shipping industry to sail adaptively into the shorthand expression of trade terms 2020 rules as soon as possible, before the any regulatory environment. for trading parties to improve the reliability entry into force deadline. TO GET IT THERE of trade transactions. Even with these technological For further information on how to obtain augmentations, so much in our modern These global projects are refned these vital new publications, including Contact us for your most goods trade still depends upon trust across decades of use and practice, future workshops, please contact: info@ between people, knowledge of the forming tools for traders to reduce australianchamber.com.au competitive rates & service c u s t s e r v @ g l o b e l i n k . n e t . a u 28 Shipping Australia Limited I Spring / Summer 2019 WWW.GLOBELINK.COM.AU 22001188 D DCCNN S SHHIPIPPPININGG & & M MAARRITITIMIMEE ININDDUUSSTTRRYY A AWWAARRDDSS FFRREEIGIGHHTT FFOORRWWAARRDDEERR O OFF TTHHEE Y YEEAARR LLININKKININGG A AUUSSTTRRAALLIAIA T TOO TTHHEE W WOORRLLDD A ANNDD T THHEE WWOORRLLDD T TOO A AUUSSTTRRAALLIAIA IIMMPPOORRTTSS EEXXPPOORRTTSS DDOOOORR--TTOO--DDOOOORR MMoroer et htahna n1 0100 0O Offfifciecse sW Worolrdlwdwidied e

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We need the politics and spin to stop and the rain to pour

By ADAM KAY, chief executive ofcer, Cotton Australia

Water is a cotton farmer’s most cotton industry has achieved a • Scheduling irrigations to conserve precious natural resource and the greater than 50 per cent water water. industry’s greatest limiting factor. efciency gain over the last 15 years. • Using soil moisture probes. That is why good water stewardship and growing ‘more crop per drop’ has Some examples of irrigation water • Improving irrigation systems like always been a focus of the Australian use efciency measures our growers laterals, pivot and drip. cotton industry. have undertaken include: • Laser-levelling felds to prevent The Australian cotton industry • Making on-farm storages deeper, ponding and water loss. believes in smart water use that to reduce evaporation. The Cotton Research and improves the health of our waterways • Improving soil conditions that in Development Corporation (CRDC) and environment, makes our farms turn improve water availability to has also invested millions of dollars in more efcient and allows our regional the cotton root system. water use efciency research over the communities to be more resilient. • Implementing water systems that past 20 years. Key areas of focus of studies included: Australian cotton growers produce re-use water. yields three-times the world average, • Alternative, more efcient making them the most water efcient • Incorporating rotations, mulching irrigation systems and producers of cotton globally. It must and stubble retention practices to technologies. be recognised that the Australian retain soil moisture. • Maximising the efciency of dams and channels. • More efcient ways to deliver water to the crop. • Achieving uniform application of water to cotton plants. • Monitoring water use and getting the timing of irrigations right. • Promoting investment in water- smart infrastructure. Australia is currently in the grips of a long and devastating drought. This drought is impacting all agricultural sectors, including the cotton industry. In the 2018-2019 season, Australia’s cotton crop was reduced by half due to the efects of drought and reduced water allocations. This season’s crop will be reduced by half again, if there is no rain. This is concerning for our growers, but I am confdent that the industry’s resilience will see us

30 Shipping Australia Limited I Spring / Summer 2019 public and ensure we are well Cotton Australia joined other positioned to manage the continued agricultural groups, including the efects of drought. National Farmers’ Federation, in The Murray-Darling Basin Plan is calling for accurate and balanced not perfect, and we acknowledge media reporting on water issues. that some in the community have Reports flled with inaccuracies, concerns about it. But the Australian factual omissions and through and prepare us for when the cotton industry wants to see the full misrepresentations do not constitute rains return. implementation of the Plan, as it was balanced journalism, and are In January this year, the combination written in 2012 and re-agreed to by unnecessarily creating confusion and of an extreme drought, above- State and Federal water ministers in angst for the general public and the 2018. average temperatures and a agricultural industries being targeted. deoxygenating algal bloom caused a The Plan has already recovered The Australian cotton industry is major fsh death event at Menindee in 2,100GL of water for the environment. attempting to clear up some of the New South Wales. It is the best and only deal that could misunderstandings by opening our be achieved by the Basin States and The devastating incident sparked gates, presenting the facts and a very heated debate leading up to the Commonwealth after years of negotiation, and we need to get on proactively engaging with urban and the New South Wales and Federal rural communities, politicians and elections. The cotton industry with the job of implementing the Plan. media outlets. quickly became the whipping boy This view is also shared by the and the focus of many people’s anger National Farmers’ Federation, Despite the challenging year it has across traditional and social media National Irrigators’ Council and the been for our industry, enduring media platforms. New South Wales Irrigators’ Council. attacks and a crippling drought, we The national debate became so We agree that more monitoring remain a resilient agricultural sector. hostile that South Australian senator, is required, particularly around The reality is, without much-needed Rex Patrick, in a calculated move to the outcomes of environmental rain in the next couple of months, the boost his own profle and relevance, water. Similarly, it is important the production forecast for this coming launched a dangerous political Commonwealth Environmental Water season is not optimistic. However, attack on the industry by introducing Holder and other environmental water it must always be remembered that legislation to ban the export of holders explain how environmental droughts come and go, and there will cotton from Australia. It must be water is being used, what outcomes be good times ahead. While that may remembered that South Australia is a they are hoping to achieve, and then be difcult to see now, I know our State where no cotton is grown, and report back on those outcomes. industry is committed to bouncing the move was clearly a contrived, If the drought was not crippling back and being stronger than ever. politically-motivated one. enough, Australian farmers, including It is this resilience, commitment to Right across the supply chain, the cotton growers, have also been under excellence and best practice, and cotton industry has united over the siege from sections of the media and the passion of our growers that helps past 8 months to strongly, proactively politics, who are not providing the full make us a world-leading industry, in defend our industry, educate the story on complex water issues. good times and bad.

Spring / Summer 2019 I Shipping Australia Limited 31 ANTARCTIC INNOVATION

Commissioning Australia’s new icebreaker

By CLINT THOMAS AM CSC, managing director, Serco Australia

The Southern Ocean is a Australia’s new icebreaker, the RSV research stations can be undertaken formidable force. Home to some Nuyina, is a $1.91 billion investment faster and more efciently in a single by the Australian Government and will voyage. of the most extreme weather in form the centrepiece of the Australian The vessel will have an increased the world, freezing temperatures Antarctic Strategy. Serco Australia is range of 30,000 nautical miles and mammoth icebergs, it’s managing the design and build of the and will be funded to operate at a challenge to design and vessel and will operate and maintain the icebreaker when it arrives in its sea for 200 days each year. With build a ship that can withstand home port of Hobart in 2020. signifcantly greater icebreaking such conditions. So, when an capability, it will be able to undertake icebreaker also needs to be a With more than 50 years’ experience winter voyages into Antarctic waters; delivering services to the Ministry of a feat which has previously been state-of-the-art scientifc research Defence in the United Kingdom, and impossible. platform that will serve Australia’s 22 years providing maritime services to the Royal Australian Navy, Serco Australian Antarctic Division Director, Antarctic needs for the next three Kim Ellis, said the Nuyina will be a decades, innovation is a must. drew on its expertise in complex project management and vessel remarkable addition to Australia’s operation to ensure the icebreaker Antarctic capabilities. was ft-for-purpose. “It will deliver for us new A scientifc research platform, opportunities for scientifc research icebreaker and resupply ship in one, and capabilities for logistics, the Nuyina will be powerful enough passenger transfer and fuel resupply to break 1.65 metres of ice at a that we’ve never had before,” Mr Ellis continuous speed of three knots, said. quiet enough to allow researchers to “When Nuyina is launched in use acoustic instruments, and large Hobart in 2020 she will be the most enough to resupply Australia’s four powerful research and logistics ship Antarctic and subantarctic stations at in the Southern Ocean and a terrifc once. contribution to Australia’s Antarctic At 160.3 metres long and 26,000 eforts.” tonnes, the Nuyina will be more than Among the scientifc ‘game-changing’ one-and-a-half times longer than design elements are the ship’s Australia’s current icebreaker, the hull and propulsion system, which RSV Aurora Australis, and around have been designed to reduce three-times heavier. It will have a noise associated with the engines, 1200 tonne cargo capacity, enabling gearboxes, propellers, and bubble it to carry ninety-six 20 foot shipping formation. The ‘Silent-R’ noise containers inside its holds. specifcation is also supported The Nuyina’s 300 per cent larger by a hybrid propulsion system, cargo capacity and 70 per cent larger which includes diesel generators fuel-carrying capacity will mean on fexible mounting systems (to resupply operations to Australia’s four absorb vibrations). A moon pool, to

32 Shipping Australia Limited I Spring / Summer 2019 deploy oceanographic equipment, and a wet well sampling space, will allow scientists to undertake marine research while the vessel is operating within the ice. The watertight wet well sampling space is unique to the Nuyina and will allow scientists to collect and study fragile marine organisms in their natural environment for the frst time. Thirty-two crew and 117 expeditioners will travel comfortably onboard, for expeditions lasting up to 90 days. To make the long sea journeys more enjoyable, the ship includes a 96 seat theatre, a library, and an observation bridge/deck, just below the navigation bridge. This area will be used to undertake observations of sea ice, wildlife and weather, and will double as a recreational and meeting space. As well as crew and expeditioner cabins, At 160 metres long and 26,000 tonnes, the Nuyina is three times the capacity of there are also a conference room, Australia’s current icebreaker dining room and lounge. possibilities in scientifc research, Scott has completed more than 50 The design of the vessel was carefully such as discovering new species voyages to Antarctica. As Captain considered. and learning more about the unique of the RSV Aurora Australis for over Through our role in the design and Southern Ocean environment. 10 years, he is familiar with the cold build of the vessel, Serco has worked and challenging conditions of the It truly is a step-change in Australia’s with scientists and specialists in Southern Ocean. Antarctic research capability. the Australian Antarctic Division to “The Southern Ocean is a captivating consider what the future for scientifc A ship of such calibre demands a place to work,” Scott said. research in the Southern Ocean skilled captain equal to the task of will look like, and how this vessel skippering tough Antarctic voyages. “Every day you can see the extremes can best meet the research and Masters Scott Laughlin and Paul of nature from the subtle hues of the operational needs required over its 30 Clarke recently joined the Hobart- blue and white in the make-up of the year lifetime. based Nuyina crew and come to Antarctic ice, to the majesty of the the role with extensive experience birds and animals that live in such a The result is a vessel that ofers working in the Southern Ocean. With cold and hostile place.” unrivalled scientifc, logistics and more than 70 voyages to Antarctica icebreaking capabilities. Scott’s seafaring experience has between them, the Masters are made him an invaluable member The advanced capabilities of enthusiastic about continuing their of the project. Joining Serco in the icebreaker open up exciting work in the icy southern waters. 2014, Scott was part of the team who compiled the successful bid to design, build, operate and maintain the Nuyina, and then more recently as a member of the engineering team, managing the design and build phase. Paul’s experience includes 11 years working for the British Antarctic Survey, where he undertook more than 20 voyages to Antarctica. Starting with the company as a deck hand in 1994, his recent appointment as Master of the Nuyina fulfls a lifelong goal. “My ambition was always to become the Master on a polar research vessel. I very much enjoy the type of ice navigation challenges, research and survey work that we will undertake on the Nuyina,” Paul said. The name Nuyina comes from the Masters Scott Laughlin and Paul Clarke, enthusiastic to take on their new ship palawa kani language spoken by

Spring / Summer 2019 I Shipping Australia Limited 33 The Australian public has had a sneak preview of a LEGO version of the Nuyina, built by “The Brickman” Ryan McNaught. One of only 14 certifed LEGO master builders in the world, Ryan is also a judge on the TV show LEGO Masters Australia. Inspired during a trip to Hobart in 2016, when he saw Aurora Australis preparing for one of its annual Antarctic resupply voyages, Ryan approached the Australian Antarctic Division. Learning a new replacement icebreaker was under construction, he grabbed the opportunity to build a LEGO model replica. At 2.8 metres long, the Nuyina model took Ryan and his three assistants 117,612 LEGO bricks and 328 hours to build. The model is currently on display at the Australian National Maritime Museum in Sydney.

Tasmanian Aborigines, meaning Romania, by shipbuilder Damen. businesses to deliver support services ‘southern lights’ (or aurora australis). Harbour acceptance trials and the such as repair and maintenance, The name recognises the long interior ft-out are currently underway, docking, security, cleaning, connection that Tasmanian Aboriginal with sea trials to be completed providoring and stevedoring. people have with the atmospheric early next year. When complete, phenomenon. The vessel was named the Nuyina will rise to ten decks at Serco is currently accepting by Australian schoolchildren through navigation bridge level and measure expressions of interest for industry a competition run by the Australian 50.2 metres from the keel to the top partnerships and will be recruiting Antarctic Division. of the weather radar. crew positions later this year. The Nuyina is due to arrive in Hobart The project is expected to create next year. Construction of the hundreds of jobs for Tasmania and For more information, vessel is being undertaken in Galati, provide opportunities for Australian visit www.serco.com/icebreaker

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34 Shipping Australia Limited I Spring / Summer 2019 Tasmania’s tradelink to the world

Tasmania is booming. With a strong economy and record visitor numbers, TasPorts is responding to this strong growth. With responsibility for operations and management of all ports in Tasmania, we are delivering more projects and services than ever before to support Tasmania.

TasPorts remains committed to our purpose of facilitating trade for the benefit of Tasmania. But our ambitions have never been greater: to ensure the vitality of our state’s economy, support our enviable way of life and serve as Tasmania’s tradelink to the world.

TASPORTS.COM.AUSpring / Summer 2019 I Shipping Australia Limited 35

DNC_Full_Page Generic.indd 1 19/12/2018 2:44:16 PM CONTAINERISATION

The future’s looking greener for containerisation

By BRENDAN McAULIFFE, chief executive ofcer, AQUIO

Since frst being introduced in 1956 must be controlled as practically exposed to dangerous chemicals to international trade, the shipping as possible to minimise the risk to while unpacking shipping containers. container has seen a remarkable workers. Safe Work Australia has The health risks posed may not increase in importance for global developed a series of information only afect the workers involved in trade over the last 50 years. In 1968 sheets to provide practical guidance container unpacking, they may also fewer than one million containers for Australian workers to manage apply to supervisors, site managers were shipped around the world, by health and safety risks associated and inspectors who gain long- 2016 this had increased to 182 million with unpacking shipping containers, term exposure through consistent including exposure to hazardous containers. More than 90 per cent exposure to the containers as part of chemicals, for example fumigants and of items shipped internationally are their everyday job. facilitated by shipping containers, solvents. Suggestions by Safe Work everything from clothes to cars to Australia to eliminate or minimise In 2011, Safe Work Australia computers. The shipping container exposure of workers to hazardous conducted research in Melbourne has profoundly changed global trade chemicals in shipping containers investigating the presence of residual by facilitating reliable and cheap include using barriers and warning chemicals in shipping containers. transportation of goods across signs, as well as providing workers They surveyed 76 containers and countries. This, in turn, has had with personal protective equipment. found air borne hazardous chemicals far-reaching consequences, on the This paper is particularly concerned in 74 of the 76 containers. Some of positive side it has driven down with hazardous fumes and the risks the hazardous chemicals detected the price of items through opening posed therein. Workers may be included: new economies of scale. On the downside, the environmental impact of container shipping, an increase in carbon dioxide emissions. With the growth in international shipping, the packing and unpacking of shipping containers has presented hazards to both employees and employers, for example: • Hazardous fumes – fumigants used for pest control, of-gassing from products shipped in the containers, • Manual handling – heavy lifting, • Falling objects – due to shifts in the contents due to transport, falls of containers in container stacks. Where a hazard is identifed, elimination is the primary goal. If elimination is not possible, the hazard

36 Shipping Australia Limited I Spring / Summer 2019 As can be seen from the above table, of hazardous chemicals from these industrial coatings, like those that could the most common hazardous chemical solvent-based paints, toluene and be used on shipping containers, this residues identifed are fumigants and xylene, were the two most commonly transition has not occurred on a large solvents. Toluene (92.1 per cent) detected airborne contaminant in scale in Australia, with a focus on fast and xylene (73.7 per cent) were the shipping containers. turnaround, which is achieved using most commonly identifed air borne Over the past decade there has been fast evaporating solvents. However, hazardous chemicals in the shipping an increased emphasis on sustainability containers tested. by transitioning from traditional solvent by the shipping industry, with a large coatings to new cutting-edge water- When workers were interviewed during focus on emissions reductions and the based technologies, the shipping this research, it was identifed that those carbon footprint of their operations, container M&R industry will beneft exposed to the air borne hazardous and the subsequent impact that would from: chemicals were more likely to report: have on climate change, for example, Maersk Low Carbon Future, CMA-CGM • Symptoms of memory loss, • Increased workplace health and Corporate Social Responsibility Policy safety, • Asthma, and IMO 2020. The issues faced by the shipping industry to make its operations • Reduce risk in the supply chain by • Irritation of the eyes, more sustainable and environmentally not having to handle dangerous • Dryness of the mouth, friendly, are both short-term and long- goods in their cargo, term challenges. Long-term challenges • Dryness of the throat. will require signifcant investment on • Fewer worker sick days, In addition to the health efects that the behalf of ship owners, container • Lower overall risk profle for the work owners and port operators. There are can result from exposure to these site, reducing insurance, chemicals, solvents are also highly some shorter-term strategies that can fammable, which cause fre and be undertaken with minimal investment, • Better environmental footprint, explosion risks when exposed to heat, to improve sustainability and worker sparks or a naked fame. The combined safety. The most immediate strategy • Extremely low investment cost. impact of health efects and fre risks is a switch from solvent-based to Unlike the container production lines associated with solvent-based materials waterborne coatings. in China, there is no signifcant cost in shipping containers increases the risk The introduction of waterborne coatings associated with a shift from solvent- of sick days, staf turnover, WorkCover into the container industry frst started claims, increased insurance risk, based to water-based coatings. Indeed, back in 2010. Since then the use of specialised risk and safety training, and initial trials indicate that there are waterborne coatings for the coating litigation, all of which are indirect costs many direct and indirect cost savings of newbuild containers has been that increase overheads for business. associated with the use of water-based mandatory from April 2017. One of the paints for container M&R, including: Promoting better practices and training biggest challenges presented to the of staf to recognise and reduce the container building factories in switching • Up to 30 per cent reduction (litreage) impact of residual chemical exposure from solvent based to waterborne in material used, from shipping containers must be a paints, was meeting the application high priority for empty container parks. process criteria, which is more involved • Reduced costs for DG transport, This represents minimisation of risk. for waterborne than for solvent-based. storage and compliance, However, consideration must be given Solvent-based paints were used in the to the elimination of air borne hazardous container manufacturing industry for a • Reduction/elimination in PPE and chemicals from solvent-based paints reason: they are far easier to apply and health and safety costs, more forgiving if there are shortcomings that are widely used to upgrade the • No purchasing of additional solvents interior of shipping containers. in the application process, and more or waste solvent disposal, tolerant of cold weather. It was noted It is a requirement to display notifcation that there were signifcant costs of fumigation and a dangerous goods • Elimination of protected equipment associated with switching from solvent- placard for solvents on the exterior of requirements (fameproof tooling, based to waterborne application shipping containers, which would alert hoists, lighting). processes for container manufacturers, workers to the potential risks posed including additional heating, venting and The use of water-based coatings in by air borne hazardous chemicals. It dehumidifcation, there was an increase is often overlooked that the products the Australian shipping container M&R in power consumption of up to 60 per used to coat the interior of shipping industry should be investigated, with cent to facilitate the use of water borne containers can contribute to of-gassing priority to improve health and safety coatings. and subsequent inhalation risks of of workers charged with carrying out hazardous chemicals. Indeed, of the Trends in the paint industry indicate upgrades, reducing the risk of exposure fve non-fumigant hazardous chemicals that since the early 1990s, solvent- to solvent-based air borne hazardous identifed in the Safe Work Australia based enamel paints have been banned chemicals for workers, supervisors, research, all of these are common in Europe in architectural coatings, site managers and inspectors. On raw materials found in solvent-based, however, they are still used in Australia top of this there are the associated quick dry paints used for spraying the today. By 2000, low VOC architectural environmental benefts which help interior walls and ceilings of shipping coatings had become mainstream. By containers. Interestingly, it is not 2010 the benefts of low VOC and ultra- shipping lines meet their environmental required to placard a container that low VOC paints were being recognised policy targets, as well as meeting has had solvent-based paint sprayed in the architectural sector. While these consumer preferences for sustainable on the interior when the outgassing benefts are applicable to water-based products and services.

Spring / Summer 2019 I Shipping Australia Limited 37 SEAFARER WELFARE

remain proud to be making a signifcant Operation White Bay Cruise Terminal contribution to the happiness and wellbeing 2019/2020 of seafarers and their families, often in quiet The next cruise season commences in ways but sometimes dramatically so.” September/October 2019. With such great Likewise, for The Mission to Seafarers success and breakthrough last season, we Sydney, we have seen a signifcant growth will continue our Operation Cruise Terminal in caring for seafarers around the world, 2 at OPT. In the meantime, we are planning with compassion. We are creating the a new initiative called, Operation White Bay awareness among seafarers and the wider Cruise Terminal. There are many cruise community that at our Mission Centre - we vessels visiting White Bay Cruise Terminal are providing a home away from home for and a number of vessels berthed overnight. seafarers; a place of hospitality where they The seafarers on board have no means of can relax, refect and be refreshed and a travelling to the city or visit our Mission. sanctuary of hope, especially for those who We are here to attend to their needs and are weary and looking for a place to cast hopefully to be able to transport them to their emotional and spiritual anchors to fnd our Mission and to visit our beautiful city. assurance, peace of mind and rest for their International Seafarers’ Welfare and soul. We understand the issues of mental Assistance Network (ISWAN) health for seafarers which many of them Caring for are struggling due to isolation, loneliness, This year we were nominated for two depression, and we are here to support Awards, namely - The Best Seafarers them and to assist them. Centre of the Year 2019, and The Dr Dierk Lindermann Welfare Personality of the Year seafarers who Operation Cruise Terminal 2018/2019 Award 2019. We have been shortlisted The Cruise season for 2018/2019 started for both Awards to be presented on serve us! on a high note. It was exciting to see Wednesday, 11 September 2019 in London. record numbers of seafarers from the I want to thank all seafarers, supporters, cruise vessels visit our Mission! Since our friends, volunteers, staf and board By REVEREND TAY, principal Mission moved to Hickson Road in the year members for their nominations. A special 2013, I was quite puzzled as to why so few thanks to all our staf and volunteers for chaplain and chief executive their untiring service, support and care ofcer, The Mission to Seafarers, seafarers from the cruise vessels visit our Centre. I have been visiting the crew on shown to the seafarers around the world. Sydney board the various cruise vessels each year Christmas Thanksgiving Celebration but not more than ten seafarers visited our Mission each season. Each year in December, we organise Christmas Thanksgiving Celebration. At According to the Annual Review statistic Since we launched our OCT, we have had this event, we give thanks to God for the from MTS London (FAN June 2019, Issue more than 250 seafarers visit our Mission. many blessings He bestowed on us, for 26), the year 2018 was another signifcant From experience, 90 per cent of seafarers seafarers serving us and to thank each year. The global team is one of the largest on board the cruise vessels have not of you for your support, participation and port-based welfare operators in the world. heard of Mission to Seafarers, the other 10 donations. May I invite you to celebrate With 200 ports beneftting from our support per cent who have heard of our Mission with us on Tuesday, 10 December 2019 at in 50 countries; 121 Mission to Seafarers’ do not know where we are located. We 5:30pm - 7:30pm at our Mission. We are Centres; 70 frontline staf; 100 honorary can proudly say, that we have increased organising Christmas gifts for seafarers chaplains and 1000s of volunteers. Our the awareness of our Mission among the during this season. If you wish to donate, teams are on call 365 days a year, visiting seafarers, with our presence at Overseas please deliver your gifts to our Mission at Passenger Terminal, visiting them on board ships, ofering hospitality and advocating 24 Hickson Road, Millers Point, Sydney the vessels, and we have distributed 3000 2000. on behalf of seafarers and their families. copies of our fyers! Our Operation Cruise Below are some statistics for 2018: If you would like to know more about Terminal has been a great success! Thanks our Mission and like to get involve, this to our great team of players - both staf and • 70,600 ship visits, up from 65,000 in celebration is a great opportunity for you volunteers. 2017, to attend and to get to meet seafarers and • 353,000 seafarers were helped by our Parcel Collecting Centre at MTS interact with them. I encourage you to partner with us in Caring For Seafarers teams, a rise of 18 per cent from 2017, Another successful story is that, we Who Serve Us! informed seafarers from the cruise vessels • 3) 673,000 visits were made to our 121 that they can send their parcels or orders Please visit our website: www. Seafarers’ Centres, a rise of 16 per cent to our Mission’s address. When their missiontoseafarers.org.au Facebook: from 2017, vessels call at OPT, they need to come in missiontoseafarers - Sydney personally to collect their parcels. With • 4) 439,000 seafarers provided with Donations can also be made directly into this initiative, we have seen more than 150 transport, a huge 64 per cent rise from our Bank Account: 2017. parcels delivered to us this season. They were very grateful to us for rendering this Banking Details: (Welfare A/C) To quote our Secretary General, The important, critical and practical service to BSB 062 074 Reverend Canon Andrew Wright, “We them. Account 1000 8062 (Tax-deductible)

38 Shipping Australia Limited I Spring / Summer 2019 Spring / Summer 2019 I Shipping Australia Limited 39 BUSINESS / ECONOMY

Some trade wars are more equal than others

By BERNARD GRESSER, director, Infnitas Assets Managements Limited

It seems like an eternity ago since the Trump pre-election rhetoric turned into the real impositions of tarifs on China. That which was frst tweeted about in March 2018 turned into on-again, of-again tarif announcements. This really escalated into a full- blown trade war at the end of August 2019.

Considering it took from 2016 until now exports from the US were still making for the rhetoric to turn into a real pseudo- their way into China, tarif free, via transit sanction environment, there are really no countries. excuses for not being prepared for it. These countries included Korea, Japan The hostile US-China environment and even Argentina (the Argentinian soy will be seen historically, as one of the bean import/export data over the past 12 multiple trade disputes that we have seen months is now too signifcant to ignore). between economies that are classed as developed (which may be being A country that is now starting to make generous) and economies that are still headlines is Vietnam. classed as emerging or developing (which After Vietnam’s economic growth would be very much understating their accelerated from sub seven per cent output and sophistication). during 2017, to above seven per cent in Looking at a few diferent aspects of 2018, most forecasters were expecting the US-China trade war, we can see economic growth to moderate during how diferent players have reacted. 2019. In a previous article I wrote about how Those forecasters appear to have

40 Shipping Australia Limited I Spring / Summer 2019 been too conservative, with Vietnam potentially being on track for another seven per cent plus year and maybe even seeing an acceleration over the previous year. How has Vietnam been able to continue their economic miracle? It all comes down to geography. As per the included map, Vietnam borders southern China. The fact is that Vietnamese rail and port facilities allow easy transit in and out of China, for goods. This is one of many loopholes that is currently being exploited by market forces to meet consumer demands, in China and the US. At some stage, this avenue of transit might be closed. However, at the moment, there is little doubt that Vietnam is beneftting from the US-China trade war. Vietnam has demonstrated that it is a winner from the ongoing situation. For every winner, there is a loser. Supply chains that are leveraged to 5G appear to be wearing a substantial amount of pain. Without going into the technical aspects of 5G or the perceived national security concerns, the delay in 5G has backed All one has to do is look at the a regulatory mine feld for the up the entire supply chain. There are quarterly flings of the 5G ecosystem inexperienced. Now, suppliers into so many moving parts to this, one can components makers to see how either the Chinese market must address understand why there has been so their order book has slowed or been COO (Country of Origin) requirements much discombobulation. disrupted. This is because global and increasingly COR (Chain of supply chains span continents. When Responsibility) compliance demands. First, Chinese telecommunications giant Huawei was not initially impacted at internal company orders are impacted Freedom Foods appears to have the early stages of the China-US trade by price hikes of 25 per cent, it turns navigated those issues well. As per war. Efectively, this was only a 2019 the economics of that supply chain their last result, demand for the UHT development. Now Huawei and their upside down. product outstripped supply. market-leading 5G devices, have turned Then you move further down the supply Many Australian companies could learn into key issues in the trade war. chain and see companies like Apple, from the regulatory experiences of Next, for 5G networks to work you need having their sales and release dates of Freedom Foods. newer 5G products delayed. hardware and networks to support On that note, many US companies can these ecosystems. These disruptions to the 5G supply learn from Freedom Foods. Access to a chain are typically being worn by that market (in this case China) is one thing. middle market, who has no control over Providing a world beating product in the purchasing orders of the global another. Ultimately, it doesn’t matter telecommunication giants. about having a perceived level playing feld when it comes to international Due to consumer demands, one way trade. If you are selling the best or another, this technological gridlock product at a competitive price, you’ll be will be broken. It’s just a matter of who surprised how little tarifs impact you. does it and when. At some stage, the US-China trade war Some Australian companies are will be resolved. This resolution with be benefting from the US-China trade a political solution. This resolution may dispute. not see any meaningful diferences from Some Australian companies should be where the US and China were before benefting a lot more than they are. this current dispute started back in March 2018. An example of an Australian company that is delivering on this front is Keep in mind that this column may Australia’s largest UHT milk producer, not age well. Freedom Foods. Considering we are in an environment The export of consumer goods, like of 3am tweeting, everything can change UHT milk into China, has become at a moment’s notice.

Spring / Summer 2019 I Shipping Australia Limited 41 BUSINESS / ECONOMY

Exchange rates in the current trade environment

By PAUL BETTANY, Foreign Exchange partner, Collinson & Co

Introduction on Chinese exporters. The US had have been a prompt stimulative to avoid increased tarifs on US$250 billion of further damaging global economies. The US/China Trade war has triggered Chinese exports from 10 per cent to 25 The RBA has cut rates twice since the global growth concerns, and forced per cent and in addition, have imposed re-election of the Liberal Government. Central Banks across the world to 10 per cent tarifs on the remaining The RBA has noted the impact of the shift monetary policy to an extremely US$300 billion of exports! The Chinese and historically stimulative level. The trade war on the domestic economy and responded, but are very limited in their promised further QE as is necessary RBA has led the way, with two rate reactions, due to the imbalance in trade cuts since the re-election of the Liberal and demanded. They have led the (US$500 billion defcit/surplus). The way and others have followed. The Government, and the promise of more, Americans have suspected the Chinese as the situation demands. The RBNZ Bank of England, the ECB and Bank of of delaying tactics in the hope Trump will Japan have promised further stimulation also reacted, with a 50 basis point cut not be re-elected and they may negotiate through monetary policy. The ECB and of their own, confrming the danger level a far more favourable treaty with a Bank of Japan have already got negative to these trade exposed economies. Democrat President? The US Federal Reserve has also cut interest rates, so will need further rates, and both the ECB and the Bank President Trump’s response was initially action, through purchasing/repurchasing of England have indicated further greeted with panic by markets, as programmes and expending the money ‘Quantitative Easing’. global equity markets crashed, over supply. The Federal Reserve has fears of the damage to global growth reversed their Quantitative Tightening US/China trade wars and international trade. The existing (QT) strategy and begun to cut rates The US/China trade war is escalating, supply chain is under threat. The again. The Federal Reserve and with arrows being fred at the Chinese, longer the trade war continues, the Chairman Powell are under extreme via President Trump’s ‘twitter’ account. more permanent the damage. The pressure from markets and the President. Never before has a trade war, or any Chinese economy is sufering, and The Fed has been under a sustained politics, been conducted in public via their economic data releases confrm twitter attack from President Trump, who this. China has re-routed exports social media! The Chinese and US had blames them for raising rates too soon through ‘third parties’ but the longer all but reached an agreement some and too fast. He is a strong advocate of the ‘war’ extends, the more other Asian months ago and were on the verge of low interest rates to stimulate economic Tiger Nations fll the production/export signing, until a last-minute withdrawal by activity. the Chinese. The comprehensive nature gap. This will necessarily impact the of the agreement apparently had far Australian economy in the near future, The global QE should stimulate business reaching repercussions for the Chinese, as China is the biggest export market. It investment and encourage economic is a dangerous, high stakes game, the which included not only balancing growth. It also triggers yet another Chinese Government are playing. the trade defcit, but addressed the global currency war. The lower interest rampant ‘Intellectual Property’ theft and Central Bank action rates undermine the associated subsidised export industries. The extent The immediate impact of the ‘US/China currencies and this has been refected of the compromise was just too much Trade War’ was seen in markets, with in the trade exposed, commodity for the Communist Chinese leaders to equities crashing and fears emerging of currencies of Australia, New Zealand, swallow. a global recession. Remedial action has Canada etc. The Feds action has been The last-minute withdrawal from the been demanded and been forthcoming. tempered, and therefore the dollar has process angered the Americans, who Central Bank action over monetary risen to historical highs. The immediate reacted by imposing further sanctions policy and fscal action by governments efect of this is too undermine the

42 Shipping Australia Limited I Spring / Summer 2019 purchasing power in non-US dollar AUDUSD chart economies, and fow directly into cost-of-living pressures. The Australian experience The surprisingly re-elected Liberal/ National coalition Government has brought some certainty back to the economy, and provided a boost to a seriously challenged housing market. The seas may be calm, but the economy is under serious threat, with global growth concerns hitting the trade exposed economy. The ongoing US/China trade war is upsetting the supply chain and beginning to impact the domestic economy. Economic growth is sluggish and is manifesting itself in the form of economic data. The RBA has been quick to act, cutting interest rates twice, in two months, postelection. This should encourage investment and hopefully stave of by accurately forecasting foreign undermined the trade exposed recessionary pressures. It does not currency cash fows and mitigating countries’ currencies and equity assist the AUD, with the only saviour the risks, with efective and available markets. The economic fallout from possibly coming from the actions of management tools. the political impasse is wide and far the Federal Reserve. reaching. A solution may come anon, Summary To avoid currency volatility, exposed and restore economic confdence companies need to employ orthodox The ongoing US/China trade war has and sentiment, but this war may risk management techniques, to forced stimulative fscal and monetary extend until after the US Presidential ensure pricing certainty. Currency policies to combat global economic elections (November 2020) - let’s risks can be managed efectively, growth fears. These actions have hope not?!

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Spring / Summer 2019 I Shipping Australia Limited 43 MARITIME TRADE IMO’s 2020 Low Sulphur Fuel (LSF) – Are we ready yet?

By MELWYN NORONHA, deputy CEO, Shipping Australia Limited

The worldwide implementation of this • Cylinder liner wear and tear – more Will the new rules afect freight rates? important new IMO requirement from 1 difcult to balance the corrosive infuence Yes, but by how much remains to be seen, January 2020, represents a regulatory game of sulphur and the cylinder oil in low sulphur and a lot will be dictated by supply and changer. fuel, leading to increased wear. demand. Fuel prices will play a signifcant With less than six months to The key message for shipping lines, has role in the rise of shipping rates, as 60 implementation, by now most of the been to contact the engine manufacturer per cent of a ship’s operating cost is fuel. shipping industry would have decided on early, to discuss compliance options and The refning industry will have to alter its the best way to deal with this new sulphur to determine the most appropriate solution, production, increase the supply of low- cap. Available options to the shipping sulphur fuels and manage excess supply of including consideration of consequential fraternity include burning a compliant fuel, high-sulphur fuels. The extent of the rise issues with this solution. installing scrubbers or retroftting with LNG would depend on how much low-sulphur engines. Bunker surcharges fuel was made available internationally. Apart from the signifcant additional cost As the date inches closer, analysts following Examining the various sources, it seems the of compliant fuel, implementation will be energy markets are becoming alarmed at price will be somewhere between $200 and complex because of the sheer magnitude the possibility that the spread between light $250 higher than that of high-sulphur fuel. of the switchover and the much larger quantities and diferent types of fuel and heavy fuel oils, which will inform the New regulations are certain to infuence involved, as well as continuing uncertainties surcharges shippers pay, could be larger freight rates. These rates can fuctuate about the availability of compliant fuels in than shippers are anticipating. Examining depending on: every port worldwide, immediately after 1 various sources, it seems the price will be • Time and distance between ports, January 2020. somewhere between $200 and $250 higher • Weight and density of the cargo, Main issues than that of high-sulphur fuel. • Freight classifcation, Some the issues that both regulators and In terms of bunker fuel prices, the major industry are contending with are: global container lines have separately • Mode of transport, • Availability, outlined revised Bunker Adjustment Factors • Tarifs and taxes, • Scrubbers – Open loop and closed loop, (BAFs) that replaced the old formulas on • Fuel costs. 1 Jan, this year. The carriers say the new • Transition and impacts on engines from Rising fuel costs, means rising freight rates, formulas are better suited to recouping the the use of compliant fuel oil, with much of these costs being passed to additional cost of meeting low-sulphur fuel consumers. According to Goldman Sachs, • Compliance, requirements that the container shipping it is estimated that the total impact to • Bunker surcharges. industry estimates will add between $10 consumer wallets could be around US$240 Availability billion and $15 billion to its annual fuel bill. billion. The oil majors have all made assurances via statements or in media reports that low-sulphur fuel will be available later this year in container shipping ports around the world, and they have expressed confdence that supply will be sufcient. However, the demand will be enormous, with BP expecting over 90 per cent of the global bunker market to comply with the 2020 sulphur cap. Impacts on engines Another issue facing shipowners and some engine manufacturers, is the potential impact on engines associated with the use of varying levels of LSF, which include: • Compatibility issues associated with mixing of parafnic and aromatic base fuels; • Use of exhaust gas cleaning systems, known as scrubbers, could create blockage in the exhaust that increases back pressure, which may require the manufacturer to make engine modifcations, including turbocharger upgrade or retroft, approved by the relevant class society.

44 Shipping Australia Limited I Spring / Summer 2019 Spring / Summer 2019 I Shipping Australia Limited 45 TECHNOLOGY

Traxens role in the new digital strategy

By PETER CREEDEN, director, MPC International Pty Ltd.

August 26, 2019 – The digital pace has It is unclear how many containers are When this happens, shipping lines will be quickened, thus things may have changed actually using IoT devices. Overall, these able to own and create their own data. by the time you read this article. commitments are too small to make a This will eliminate the dependence on the This quickened pace was made clear when signifcant change in how the shipping lines terminals, depots or other suppliers in the Digital Container Shipping Association manage their container feets in the next few the supply chain to provide the container (DCSA) made some big announcements years. tracking data. The improvements in data soon after my last article was published. Each of the top shipping lines have quality alone make the move to smart Thomas Bagge, CEO of DCSA, was container feets of more than two million containers a good investment. successful in getting CMA CGM onboard as containers. Reefers make up, generally, Going beyond the gate (of an empty depot, a founding member. DCSA also announced only 20 per cent or 25 per cent of the overall intermodal terminal or ocean terminal) and that Evergreen, Hyundai Merchant Marine, feets. If 100 per cent of the reefer feets tracking where the container is actually Yang Ming and Zim joined as members. for the top three carriers were upgraded, packed or unpacked, will provide the Henning Schleyerbach joined as COO. then 1.2 million reefer units would need IoT opportunities for shipping lines to use AI and These announcements are signifcant devices. machine learning to dramatically improve developments for the industry. Given the basic maths, the number of their container feet management and their The founding members of the DCSA have upgraded reefers seems very short. understanding of the inland movements. joined forces in pushing a strong digital All reefer feets should have these Globally, shipping lines control less then 40 strategy. smart devices. With critical and high per cent of all inland movements, known as The recent, separate announcements by value commodities such as fsh or carrier’s haulage. The highest penetration of the shipping lines about the investments pharmaceuticals, the benefts of “remote” carrier’s haulage is in the UK, with most lines in Traxens and more shipping lines joining or proactive monitoring are not only prudent doing over 90 per cent of the movements. Tradelens, not only mark a huge step for cargo loss prevention but also a cost Many shipping lines in the UK are using forward for the industry but also send a savings initiative. transport planning and optimisation systems clear signal to the wider supply chain market Re: cost savings, smart reefers eliminate the to perform the carrier’s haulage triangulation that the shipping lines have a strategy going need for long, manual pre-trip inspections. (using import containers for export loads). forward. Some shipping lines are pushing the limits The lowest carrier’s haulage percentage, These steps taken have shown a willingness and avoiding pre-trips all together. These at less than 4 per cent, is right here in by the shipping lines to move towards a short-term strategies have only increased Australia and China. If shipping lines want digital future but is it enough? the risk of failures and cargo claims. Other to do more carrier’s haulage, adding smart devices to their container feets will not only The decision by Maersk to invest in Traxens, lines are starting to use AI and machine provide a signifcant advantage to improving a smart container company, brings together learning to predict when they can avoid pre- the understanding of inland movements the top three carriers (MSK, MSC, CMA) as trip inspections. but, additionally, increase understanding equal shareholders in the Marseille based Using data analytics to suggest when of how to properly enter the market with a company. Hapag Lloyd announced they reefers should go through the pre-trip competitive and quality ofering. will roll-out the Traxens devices on 100,000 inspections is a great way to truly start reefer units. Therefore, the shipping moving into the digitalisation of shipping. Overall, shipping lines should rollout IoT industry has chosen a leader for their IoT The application of AI and machine learning devices on their dry container feets for devices but how quickly will they upgrade have their limitations now but, over the next the cost savings benefts and market their container feets? few years, will only improve. penetration opportunities. Having Traxens There are three major players in the IoT It is important to note that reefer containers is the cornerstone of owning and controlling space that have made good inroads into the are like any physical machine, proper the data. container shipping market; GlobeTracker, maintenance is the only way to ensure Interestingly, having Tradelens is how the Orbcomm, and Traxens. Of the three, only proper performance. In a single export shipping lines will sell the data. I will explore Traxens seems focused on getting the cycle, a typical container is handled about the Tradelens platform and its role in the shipping lines into the IoT world. This focus 15-20 times until the cargo is unpacked at shipping lines digital strategy in the next has paid of, with strong investments and destination. Until the predictive software article. purchases by the top lines. can constantly plan the best maintenance The establishment of a strong digital CMA CGM, Hapag Lloyd, Maersk, and routines, the cautious choice would be to strategy by the shipping lines is a great MSC have all made commitments to rollout ensure the boxes are pre-tripped for the step forward for the industry. Hopefully, it 50,000 or 100,000 Traxens devices over customer’s beneft. will keep up with the quickening pace and the next year. Hapag Lloyd will upgrade The real benefts will be when smart devices pressures that are coming from outside the their entire feet with Globe Tracker devices. are rolled out on the dry container feets. industry.

46 Shipping Australia Limited I Spring / Summer 2019 Spring / Summer 2019 I Shipping Australia Limited 47 TECHNOLOGY

Changes to wine export systems

By ANDREAS CLARK, chief executive ofcer, Wine Australia

Wine is one of a handful of The Wine Australia Licensing and • For diplomatic or consular regulated exports from Australia, Approval System (WALAS) will deliver establishments as part of the duty what users have been looking for – free allowance of the establishment; and later this year changes to enhanced access, greater fexibility and Wine Australia’s Wine Export • For victualling supplies that are self-service for edits and amendments. held on board a means of Approval software will mean It is delivering changes that will allow: international transport; changes to the shipping • greater control and enhanced exemption process. • Commercial samples for a access 24 x 7, prospective buyer. • users to apply online for all import Wine Australia will be providing on-line certifcates and, once approved, tutorials on how to use the software to users can make minor changes help freight businesses switch to the such as shipment departure dates new system. online, and, Exporters and freight businesses are • greater control of accounts, reminded that an export permit number including review and payment is granted for a specifc consignment online in real time. being sent by a particular licensed What do you need to do? exporter. It cannot be interchanged between exporters and consignments. One of the key changes that will impact Wine Australia is working with shipping and freight businesses will Borderforce to ensure regulatory be that shipping agents will be able control of exported wine shipments. to register and engage with the new WALAS software, allowing exemptions Accurate records through the to be completed online anytime, rather production chain are part of the than the current system of applying via process required to protect Australian a manually processed form. wine’s international reputation by ensuring a traceback process from Shipping exemption categories include: consumer to vineyard. • Shipments under 100 litres – To keep up to date with news about defned as a consignment made up training and the system cutover, of one exporter, or one or more visit Wine Australia’s website (www. related exporters; on one ship or wineaustralia.com/selling/further- aircraft; to a single port of information/walas). News updates will discharge; whether or not to one also be included in the regular Exporter consignee; News e-newsletter – you can subscribe • Contained in the personal luggage to the newsletter from the signup of a traveller; button at the top of Wine Australia’s homepage (www.wineaustralia.com). • For the household of an individual who is moving; For more information on the export approval process you can visit www. • For display at a trade fair or wineaustralia.com/selling/further- comparable event; information/exporting-wine • For a scientifc or technical If you have any questions, please purpose; contact [email protected]

48 Shipping Australia Limited I Spring / Summer 2019 TRIBUTE Ross McAlpine - a long voyage around the buoys

By FRANK NEEDS

After more than 65 years in the vessels) with contracts, especially with organisation. The most challenging shipping transport industry, the past meat exporters and other commodity one, he admits, was chairman of the 28 years with Mediterranean Shipping groups, trading to Japan and North Public Relations Steering Group, which Company Australia, one of our industry Asia. produces this magazine. Surprisingly, stalwarts, Ross McAlpine, has recently Ross didn’t fnish his working career Ross also visited Japan and South “swallowed the anchor”. too far away from where he started! Korea, on numerous occasions, as a As so many did in the 1950s, Ross member of shipping lines delegations Ross has always been very diligent followed in his father’s foot-steps and to negotiate freight agreements with in carrying out his tasks and it is started work as a copy boy at the leading importers, especially wool, no accident that he developed a Sydney Morning Herald. But after which was the largest general cargo reputation as a very fne administrator some 18 months he decided that commodity. and astute negotiator. Like a dog with a bone, he would not let go of issues was not the career he was seeking, In the 1980s, cruise liners saw a revival that needed solving, pursuing them so in April 1954 he applied and as a holiday destination, rather than with tenacity and endurance to ensure was successful in obtaining a job at a means of transportation, not seen the best outcome could be achieved McDonald Hamilton and Company, a since the invent of air travel, with the for the beneft of all parties. leading shipping agency and trading airing of the ‘Love Boat’ TV series. company in Sydney. In 1990 Ross was ofered a senior Thank you, Ross for your substantial Ross cut his teeth in the shipping position with the embryonic MSC contribution to the shipping industry in world as a junior clerk in the overseas Australia at its Sydney ofce, managing Australia. Your colleagues and friends outward freight department. Peninsular their newly formed MSC Passenger wish you a richly deserved and very and Oriental Steam Navigation Services, for the cruise liner Achille happy retirement. Company Group (P&O) was among Lauro. The frst challenge was to learn the companies managed by MH & Co. the Italian way of doing things, after Promoted to their publicity department 36 years of working under the British in March 1955, he received a very solid system – the food and wine were grounding in advertising and point of defnitely better! He travelled to Pacifc sale procedure. In 1958, P&O entered island ports to set up agents and liaise into partnership with Orient Line, to with various port authorities. become Orient and Pacifc Line (O&P). In 1992 he took a new roll at MSCA, as P&O and Orient Line integrated in 1960 Corporate Services manager, liaising and O&P was absorbed into the new with Federal and State government company called P&O-Orient Lines. agencies to ensure the new rules and Subsequently, Ross was transferred regulations on carriage of containers to Eastern and Australian Steamship were appropriate. Co. (E&A), and worked in the Ross recalls one highlight of his time administration, advertising and with MSCA when the MSC Fabienne, property departments for several years. then the biggest container ship to visit As his experience grew, Ross took on Australia, sailed under the Sydney responsibility for chartering vessels Harbour Bridge. for the carriage of wheat and general “We all held our breath as she slipped cargoes, and also for the import of under the Harbour Bridge and berthed vehicles. That was in the conventional close to our Sydney ofce. It was a vessel days, prior to the introduction of wonderful public relations exercise”. containerisation in the late 1960’s. Ross represented MSCA as a director The managing director of the Swire of The Australian Chamber of Shipping Group seconded Ross to take up the (ACOS,) which subsequently combined Ross McAlpine (left) and the author, position of manager of The Northbound with Liner Shipping Services to with a historic photo of the frst Shipping Conference (ANSCON), become Shipping Australia Limited Board of The Overseas Shipping which was tasked with establishing (SAL). Over the next 20 years he Representatives Association (OSRA) freight rates and centralising cargoes managed to serve as chairman of which started in 1912, the origin of (previously carried in conventional each of the various committees in the Shipping Australia Limited

Spring / Summer 2019 I Shipping Australia Limited 49 THE SCENE

Ken Downie, Inchape Shipping Services; Len Phillips, HMM Australia; Mario Fernando, Pacifc Asia Express; Bryan An, Hyundai Merchant Marine; Shehan Dissanayate, HMM Australia

Eleni Petinos MP, Parlimentary Secretary for Transport and Roads; Scott Henderson, SAL chairman

Our SAL NSW State Committee Parliamentary Luncheon, was held on Monday 24 June 2019, at Parliament House in Sydney. Paul McClintock AO, chairman; NSW Ports We were joined by our guest speaker, Ms Eleni Petinos MP, Parliamentary Secretary for Transport and Roads, who delivered an engaging speech. The luncheon was sponsored by NSW Ports and was well attended and enjoyed by all.

Hannah Graves, Seaway; Nat Brown; Brendan Zhang, PVH; Serge Deschanel, Gazal Rod Nairn, SAL CEO; Eleni Petinos MP, Parlimentary Jason McGregor, Port Authority of Secretary for Transport and New South Wales; Bill Rizzi, SAL Roads NSW state committee chairman

Sue Tomic, DP World; Natalie Wallace, ACFS; Megan White, Trusted Trader Consulting; Lindsay Reed, Paragon DCN

Ian Brooks and Lindsay Reed, DCN; Brian Lovell, Australian Paul Nicholson, Castellino Marine; Andrew Karas, MSC; Federation of International Forwarders Ltd Olav Castellino, Castellino Marine SAL Victoria breakfast event – Tech takeover of shipping On 21 August, SAL hosted a special SAL Breakfast Event at The Langham Hotel in Melbourne. The event was a sell-out and was proudly sponsored by Svitzer. Michael Masson, Ben Bekic, “Disruption” is the buzz word used to explain Infrastructure Victoria Wisetech Global threats to longstanding practices and processes across many fronts, no more so than in the delivery of services. We welcomed two excellent speakers, no strangers to disruption. Michel Masson, chief executive ofcer, Infrastructure Victoria, and Benn Bekic, corporate development, Wisetech Global. This was an informative event for all businesses transacting over Australia’s ports. Rod Begley (left), chairman, SAL Victoria, hosts SAL directors and guests

Biennial Newcastle Luncheon – 20 September A packed house in Newcastle heard Grant Gilfllan, in his penultimate week at PA- NSW, described the Authority and their achievements in empowering women in the maritime industry before giving his very personal and positive perspective on the history and future of the coal industry. Nicolaj Noes, combined comedy and wit Grant Gilfllan, CEO, Port to entertain the guests with an overview Authority of New South Wales of Svitzer’s drive to improve safety and efciency. Thanks to our sponsors Port Authority of New South Wales and Svitzer Australia for making this event possible.

????? Nicolaj Noes, managing director, Svitzer Australia PORT COSTS

Australian port price increases

This year’s review of port tarifs has work and dangerous goods permits has cent in water charge. However, maintained refected tarif increases in excess of the increased to $99.76 per hour. their tarif adjustments to be in line with published CPI of 1.8 per cent, in many infation. Port Authority New South Wales introduced cases the increases have been substantial. a general price increase of 4.68 per cent, Last year the tarif increases in Melbourne NSW Ports announced a 3 per cent comprised of 1.68 per cent (based on the were less than CPI, except for Wharfage on increase to their tarif, efective 1 July Australian Bureau Statistics CPI December export containers, where a further 2.5 per 2019, for Navigation Charge, (Port Dues), 2018, Sydney result), plus an additional 2 cent reduction was achieved. per cent, to all statutory and miscellaneous Site Occupation and Cargo Wharfage and charges in the port of Eden. Port Botany bucks the trend with Utilities Charges. The Navigation Charge substantial increases in wharfage (inwards) for ships loading coal at the Coal Terminal Darwin Port has increased its fees, with the 4.5 per cent (outwards) 6.8 per cent. or conducting cargo operations at the exception of Port Induction Fees, by a fat Sydney also increased the Navigation BlueScope Berths increased by 4.3 per 2 per cent. Charge 3.7 per cent, Mooring 4.0 per cent, cent. Towage and marine service provider Svitzer Site Occupancy 3.0 per cent and Pilotage 3.6 per cent. NSW Ports further advised a 3.68 per cent Australia introduced, from 1 April 2019, an average of 2.8 per cent Australia-wide increase in pilotage charges, efective 1 At the time of publication, Port Philip Sea public tarif. July 2019. In addition to pilot charges, the Pilots had not published a tarif increase for permit attendance charge for process hot- Brisbane refected an increase of 22.5 per the current period.

Port Service 2019 2018 2017 2016 2015 Navigation Fee 2.3% 2.6% 0.5% 2.5% 2.6% Berth Hire 2.3% 2.6% 0.5% 2.4% 2.7% Albany Infrastructure Fee 1.8% 2.4% 0.0% 2.5% 7.2% Pilotage 2.3% 2.6% 0.5% 2.5% 2.6% Wharfage 1.8% 1.9% 1.6% 1.7% 2.0% Harbour Dues (reefers) 1.8% 1.9% 2% 20% 2.0% Port Access Charge 0.0% 4.0% 3.1% 3.1% 3.3% Berth Fisherman Island 1.8% 1.9% 1.6% 1.7% 2.0% Brisbane Security Charges 1.7% 2.3% 1.8% 1.8% 2.4% Towage 2.8% 2.9% 3.5% 5.0% 3.5% Pilotage (all services) 2.3% 3.5% 3.5% 3.5% 3.5% Vessel Utility Charge 22.5% 2.0% 1.6% 1.9% 2.2% Transfer Bulk Liquid App. Fee 1.8% 1.9% 1.6% 1.7% 2.0% Wharfage 2.0% 1.9% 1.1% 0% 31% Berthage 2.0% 1.9% 1.1% 0% 16% Darwin Pilotage 2.0% 1.9% 1.1% 0% 0.8% Port Dues 1.6% 2.1% 0.8% 0% 0.8% Cargo Service Charge 1.6% 2.5% 2.2% 1.0% 1.5% Harbour Services Charge (base) 3.2% 3.4% 3.3% 2.0% 3.9% Flinders (SA Ports) Navigation Charges 2.8% 3.5% 3.3% 1.9% 2.7% Pilot Charges 3.7% 4.2% 4.1% 4.5% 5.1% Wharfage & Berth Hire 2.0% 1.5% 2.5% 2.0% 2.5% Mooring 2.0% 5.0% 2.5% 2.0% 2.5% Fremantle Pilotage 2.0% 5.0% 2.5% 2.0% 2.5% Dynamic Under Keel Clearance 2.0% 1.5% 2.5% 2.0% 2.5% Port Improvement Fee 2.0% 1.5% 2.5% 2.0% 2.5% Harbour Dues 1.5% 1.7% 1.9% 1.7% 2.5% Tonnage/Wharfage 1.5% 1.7% 1.9% 1.7% 2.9% Gladstone Mooring dues 3.0% 3.0% 3.0% 3.0% 4.0% Security Charge 1.4% 1.7% 1.8% 1.7% 2.5%

52 Shipping Australia Limited I Spring / Summer 2019 Ship Charges (tonnage) 3.0% 1.5% 2.1% 3.0% 2.2% Cargo Charges 3.1% 2.9% 2.1% 4.2% 2.2% Mackay Service & Security Charges 3.5% 3.0% 2.0% 3.0% 2.3% Towage 0.0% 18.0% 11% 0% -17% Wharfage/unit 2.0% 1.0% 3% 50% 5.2%

Mid West Ports Ship Charges - general 2.0% 1.0% 3% 80% 5.1% -Geraldton Ship Loading 2.0% 1.0% 3% 32% 5.1% Berth Hire 2.0% 1.0% 3.0% 5.0% 5.1% Wharfage 2.4% 2.4% 1.9% 4.0% 3.9% Navigation Services (90k GT) 1.7% 3.4% 1.6% 3.9% 24% Newcastle Site Occupancy 1.7% 3.4% 1.7% 3.9% 3.9% Towage (average) 2.8% 2.9% 2% 11% 5.0% Wharfage (Containers export ) -2.5% -2.5% -2.5% -2.5% 0% Wharfage (Containers import) 1.3% 1.9% 2.1% 1.4% 2.7% Non Containerised/General Cargo 1.3% 1.9% 2.1% 1.3% 2.8% Motor Vehicles 1.6% 1.6% 2.3% 1.0% 2.7% Dry Bulk 1.2% 2.1% 1.9% 1.5% 2.6% Bulk Liquid 1.3% 1.7% 2.2% 1.4% 10% Melbourne Channel Fees 0.7% 1.9% 2.1% 1.3% 2.7% Berth Hire 1.3% 1.9% 2.1% 1.3% 2.7% Wharf Access 0.9% 1.9% 2.9% 1.0% 2.0% Towage 2.8% 2.9% 2.4% 6.8% 13% Security 1.3% 1.9% 2.1% 1.1% 2.8% Pilotage 0.0% 1.4% 1.9% 1.2% 4.0% Import container wharfage 4.5% 186.3% 1.9% 2.0% 2.4% Coastal full container (inwards) wharfage 6.8% 90.5% 1.9% 2.0% 2.4% Transhipment container wharfage 2.0% 2.2% 2% 155% 2.4% Port Botany Import general cargo wharfage 4.5% 109.2% 2% 2% 2.7% Coastal general cargo (inward) wharfage 6.8% 79.2% 2% 2% 2.7% Towage 8.0% 2.9% 2.4% 7.9% 3.5% Tonnage 7.4% 22.9% 0% 0% 0% Wharfage 13.2% 12.2% 0% 0% 0% Port Hedland Berthage 7.5% 7.0% 0% 0% 0% Temporary Storage 7.9% 6.7% 0% 0% 0% Wharfage (non-container) 3.2% 3.0% 3.1% 2.9% 2.9% Wharfage (container) 3.0% 3.0% 3.0% 3.0% 3.0% Port Kembla Site Occupancy 3.3% 3.0% 3.0% 3.0% 3.0% Navigation 3.7% 3.0% 1.7% 2.1% 2.5% Pilotage 3.7% 4.2% 3.5% 3.5% 4.7% Port Tonnage 1.9% 2.1% 2.0% 2.9% 3.0% Wharfage (container) 2.7% 1.9% 2.1% 5.7% 2.2% Berth Hire 2.8% 2.9% 2.9% 3.0% 3.1% Portland Mooring 3.9% 3.9% 3.9% 3.9% 3.9% Pilotage 4.9% 4.9% 5.9% 3.9% 3.9% Towage 2.9% 3.9% 3.9% 3.0% 3.6% Navigation 3.7% 4.0% 3.7% 3.5% 4.7% Mooring 4.0% 0.0% 3.5% 3.5% 4.7% Sydney Site Occupancy 3.0% 3.4% 6.6% 2.7% 6.9% Pilotage 3.6% 4.4% 3.2% 2.7% 4.4% Cargo Charges 1.8% 2.4% 2.6% 2.5% 5.0% Project Cargo import 1.8% 2.4% 22.4% 2.5% 5.0% Townsville Services to Ship Charges 1.6% 2.8% 1.0% 2.4% 0.4% Towage (<50,000) 3.4% 5.9% 3.0% 3.0% 4.0%

Spring / Summer 2019 I Shipping Australia Limited 53 PORTS

Port-rail connections needed to cope with freight volume growth

By JIM WILSON*

Imagine a giant spine. Not made converge on newly-built distribution While Inland Rail will play a critical role of bone, fesh and blood. But of centres, to load and discharge cargo as a ‘spine’ in our freight network, it will to and from the Inland Rail. It will also ultimately rely on connections to other key steel, concrete and crushed stone. help generate access to regional and freight infrastructure, including intermodal Imagine too that it’s 1,056 miles international markets for over nine million hubs and ports”. tonnes of agricultural freight. long. And that it costs US$7.5 But what if… billion (A$10.9 billion). Inland Rail route And so, Port of Brisbane has The Inland Rail will connect to the national commissioned, and released, a report from Australia is building the Inland Rail, a giant rail freight network and thence to the Deloitte Access Economics (DAE) modelling railway that will act as the north-south ports at Perth and Adelaide. It will also what would happen if the Inland Rail did logistics “spine” in the eastern part of the connect the port of Melbourne to the port actually connect to the port of Brisbane. of Brisbane. country. About 70 per cent of Australia’s The port of Brisbane handles about 1.35 25.49 million people live in this area of the Well, almost. million TEU ocean shipping containers continent. The region generates about 78 each year. Rail’s current share of ocean There’s a sophisticated on-dock rail per cent of the country’s employment and shipping boxes hauled to and from the port project planned for the port of Melbourne, 75 per cent of the nation’s gross domestic of Brisbane has dropped from about 12 per a port that handles three million twenty product. cent ten years ago, to about 2.5 per cent foot equivalent unit (TEU) ocean shipping to three per cent today. In comparison, Australia’s population is forecast to grow containers a year. That on-dock rail will the ports at Sydney (2.2 million TEU) by 60 per cent over the next forty years. snake west through the city of Melbourne and Melbourne (3.0 million TEU) have a Freight volumes in the region are already to a rail/road distribution and logistic centre container rail share of about 20 per cent. big – by 2030 more than 32 million tonnes at Tottenham in the city’s west. From of freight will be moved between Melbourne there, the Inland Rail will twist and turn its Rail modal share at the port of Brisbane is and Brisbane. “That’s the equivalent of way ever north along the eastern part of extremely low compared to international almost 1.2 million B-Double [a tractor and the continent. It will run through plains, estimates. At the port of Bremen two trailers] truckloads of freight every through felds and forests, over rivers and (Germany) in 2015, for instance, rail’s year,” the Australian Rail Track Corporation through towns and cities. container throughput is over 40 per cent (ARTC) says. and in 2015 at Los Angeles it was about 35 Until, at last, arriving within sight of the port per cent, the consultants say. Freight volume growth of Brisbane, it will stop. Short. And, according to DAE, “without a That’s not a static fgure. The big problem For some unknown reason, the great inland dedicated rail freight link the trend will that the Inland Rail is being used to solve railway, which will form the spine for the likely continue, potentially declining to is the problem of freight-growth. “Freight vast majority of Australian intermodal and around one per cent by 2035”. But if a rail volumes on Australia’s east coast are agricultural freight movement, will not freight link is built to the port of Brisbane, forecast to more than double by 2050 – our actually connect to the port. It will stop at then there is the “potential to signifcantly existing road and rail networks won’t cope a rail terminal in the city’s southwest, called increase rail’s share to between 12 per cent with this increase in freight without further Acacia Ridge. to 30 per cent by 2035 (if not sooner)”. investment,” the ARTC says. Local industry bodies are not impressed. Modal shift benefts The case for Inland Rail is that it will reduce “The Inland Rail project… will transform the number of truck movements, the DAE says there a number of benefts that Australia’s freight networks, enhancing amount of fuel consumed (and therefore would derive from a modal switch. supply-chain efciency and safety, boosting the amount of emissions from fuel), reduce the nation’s export competitiveness The current 1.35 million TEU throughput at the injury and death toll from the roads, and unlocking regional development the port generated about four million local reduce road congestion and lower the cost and employment opportunities for local truck movements, in addition to “many of freight. communities,” says the high-level lobby tens of thousands” of over the road truck It will likely cause complementary group, the Australian Logistics Council. But, movements. Throughput growth forecasts investment along its route, as trucks it cautions, “interconnectivity is everything. for the port of Brisbane suggest that there

54 Shipping Australia Limited I Spring / Summer 2019 will be over fve million TEUs handled at DAE reckons that connecting the Ridge or it would be a combination of above and the port by 2050, and truck movements are to the port would increase gross regional below-ground options, broadly following expected to grow to about 13 million truck product by about A$5.4 billion (US$3.69 the route of a local motorway. movements over the same period. billion) between 2018 to 2045. Upgrading the existing corridor was DAE says that a 30 per cent modal share From terminal to port… right through or disregarded as “socially unacceptable,” of the box trade at the port of Brisbane under the city for the simple reason that large numbers would remove about 2.4 million trucks Of course, it’s one thing to say (or write) of properties would have to be torn down from the road network. That would also that a rail link should be built from the include an elimination of 12.8 billion net and “numerous arterial road structures Acacia Ridge Terminal to the port. But tonne kilometres of long-distance trucking. would be completely rebuilt”. And the end there’s one tiny little thing that’s in the way. Savings of about A$130 (US$88.9) per TEU result would be a corridor “with too many It’s the city of Brisbane. could also be realised, and there would be substandard curves and gradients”. reduced congestion costs of about A$195 Cities put a lot of problems in the way of The fnal option to be considered, an million annually, as freight trucks leave freight routes. In Brisbane specifcally, road electric tunnel, was rejected. An electric the road. Road maintenance costs would overpasses are too low for double-stacked reduce by about A$155 million annually for box trains; existing freight trains to the port tunnel would require a cargo-swap from the same reason. are limited to 680 metres; there are at least diesel to electric trains, which would limit fve fat junctions at or near Acacia Ridge the tunnel’s carrying capacity, “while The DAE gives the worked example of where freight and passenger rail merge; increasing its operational complexity”. cotton haulage from inland Australia freight trains cannot operate during peak And it would involve digging through an (Goondiwindi and Thallon) to the port of weekday hours; there are multiple level environmentally sensitive forest area. Brisbane. It’s a near 100 per cent truck- crossings and there are freight-passenger haul trade. The consultants point out that rail conficts. There’s also about 16 DAE concluded that, while a long tunnel is the regional railway network to the port of straight-line miles of houses, roads, shops “feasible,” it carries more cost and more Brisbane is limited to about 15.75 metric and ofces between the rail terminal and signifcant risks than the Eastern Freight tonnes (a metric tonne is 2,204.6 US the seaport. Rail Corridor. pounds). But a four-axle truck can take a payload of about 48 tonnes (with a total of Engineers could always just knock out a “No diesel-operated freight tunnel of this 63 tonnes gross). big corridor through the city, as the New length has been constructed beneath an South Wales State Government is doing “This means that trains using 40 foot urbanised area before. It is also evident through the city of Sydney, to build its giant that adopting a route in a tunnel does not fat container-carrying wagons cannot motorway corridor, WestConnex, to the eliminate community and environmental accommodate two loaded containers west of the city. But that kind of option impacts. While potential noise, vibration of grain (typically, loaded into 20 foot tends to be unpopular. containers with circa 25 tonne payload, and air quality impacts require more with 2.25 tonnes tare weight of the So, the main options on the table to thorough investigation to predict accurately, container). However, two loaded 20 connect to the port are an eastern rail the study indicated that they could prove freight corridor, including some kind of foot containers of grain (gross circa 28 substantial,” the report said. tonnes per container) or two loaded 40 dedicated freight tunnel; an upgrade of the foot containers of cotton (gross circa 32 existing freight corridor or the digging out tonnes per container) can be hauled by an of a 26 kilometre electrifed tunnel. A-Double road train. The A-Double, which *Jim Wilson is the Australian correspondent Railroad tycoon: which way to the coast? can access the port from Goondiwindi and for Freightwaves. Thallon… is becoming a signifcant part of The frst option, a new Eastern Rail Freight First published online Freightwaves the agriculture exports supply chain, via the Corridor, would either be one straight, long, https://www.freightwaves.com/news/ port”. rail tunnel from Acacia Ridge to the port, author/jimwilson

Spring / Summer 2019 I Shipping Australia Limited 55 PORTS

Townsville welcomes Ports Australia Conference

By MIKE GALLACHER, chief executive ofcer, Ports Australia

Less than six months after With major sponsorship from the Port of trade to and from Townsville is very of Townsville, the event launched with positive. unprecedented monsoonal an aerial pilot transfer display by Aviator With a wide variety of topics for discussion rainfall fooded Townsville, Group, followed by an extensive ‘on over the two days, this conference water’ tour of the port and its surrounds. causing over $1 billion damage provided interesting speakers presenting Both capturing the interest of around 150 on issues such as RoRo coastal shipping to the region, the strength of industry attendees, together with numerous opportunities in Queensland, the impact of media outlets present. the city and its community climate change on port planning, and the to bounce back from such Queensland Minister for Transport and future approach of the Federal Government tragedy was evident when the Main Roads, Mark Bailey MP, ofcially to address marine biosecurity. Speakers opened the Conference held at Rydges included Richard Haward, Gladstone Ports city welcomed the inaugural Southbank, and detailed his Government’s Corporation, unveiling the outcome of their Ports Australia ‘Business and commitment to growing the ports sector trial of capturing tidal turbine energy at the and in particular, the signifcant investment port and the potential for future work based Operations’ Conference in June. and support for the Port of Townsville’s on the experience of the 6 month project. development. This was expanded upon by That evening, networking was the order the Drew Penny, general manager of Port of of the night at the sold-out conference Townsville, in his detailed presentation on dinner, also held at the Rydges Hotel and the future of the port. Showcasing both the sponsored by GHD. facility and the surrounding region, Drew left attendees without any doubt the future The following morning former Olympian and chair of Port of Townsville, Renita Garard, spoke about the importance of the further development of the port to the region and the State, and she was followed by a broad spectrum of presentations ranging across issues such as pilot transfers, the transition to low sulphur fuels, and a presentation by Peter Creeden examining the future of cargo shipping in Australia and globally. The event also heard from the Australian Cruise Association on growth in the Australian market, and this was followed by presentations on innovation of stevedoring at VICT, Human Resource Management by Engage Marine, and wrapped up by Ash Sinha, policy director, Ports Australia, discussing the World Ports Sustainability programme. This inaugural event was well received by attendees, as it successfully struck the balance between topical presentations and time for industry networking.

56 Shipping Australia Limited I Spring / Summer 2019 A PORT OF OPPORTUNITY

Port of Newcastle has been a global trade gateway for more than 220 years, delivering safe, sustainable and effcient logistics solutions for our customers.

Few Australian ports can match Port of Newcastle’s unique capabilities, which include:

• capacity to double trade volumes; • deepwater shipping channel; • connectivity to a world-class supply chain; • available port-side land; • unconstrained freight network; and • berthside connections to the heavy rail network.

Port of Newcastle is embarking on an ambitious diversifcation strategy that better utilises the full capacity of its assets to grow existing trade and establish new, effcient and cost-effective supply chains.

At the heart of our operation are our people, striving every day to create a safe, sustainable and environmentally and socially responsible Port that realises its potential.

+61 2 4908 8200 Level 4, 251 Wharf Road NEWCASTLE NSW 2300 [email protected] portofnewcastle.com.au