TRUCK OPTIMISATION Plan Port of Melbourne/Dynon Precinct Jan 2009
TRUCK OPTIMISATION PLaN Port of Melbourne/Dynon Precinct Jan 2009
Victorian Freight and Logistics Council
“Our ambition is for Victoria to have the best service levels across the whole freight and logistics sector and freight transport chain, including the most efficient and effective interfaces between modes, delivering tangible benefits to business and the community, helping our State to be globally competitive.”
Objective of the VFLC Freight Intermodal Efficiency Group CONTENTS
Page 2 Acknowledgements
3 Introduction
6 Findings and Recommendations
16 Conclusion
Appendices
26 A Survey of Transport Operators – Outcome Report
54 B Transport Company Case Studies
74 C TOP Precinct Workshop Summary 1 78 D Truck Utilisation Data
82 E Mass Limits for Trucks in Victoria
83 F Port Precinct Map
84 G Port Of Melbourne Heavy Container Routes
85 H Truck Optimisation Plan (TOP), Port Of Melbourne/Dynon Precinct ACKNOWLEDGEMENTS
The Port of Melbourne/Dynon Precinct Truck Optimisation Plan (TOP) was prepared by the Victorian Freight and Logistics Council’s (VFLC) Freight Intermodal Efficiency Group (FIE Group). Funds to undertake the project were provided by the Port of Melbourne Corporation. The Truck Optimisation Plan Steering Committee was led by Mr Craig Webster, General Manager Operations (Vic) for Chalmers Industries. Members of the Steering Committee included – Mr Neil Chambers Victorian Transport Association Mr Peter Cox Patrick Logistics Mr Andy Morris Patrick Logistics/Toll Extra Transport Mr Alan White Port of Melbourne Corporation Mr David Muir Dept of Innovation, Industry & Regional Development Ms Rose Elphick Victorian Freight and Logistics Council 2 Project Officer Mr Andrew Baiden Victorian Freight and Logistics Council The Victorian Transport Association (VTA) was commissioned by the VFLC’s TOP Steering Committee to administer the Transport Operators Survey and to collate and report the results. The Steering Committee was assisted in design of the survey by Roy Morgan Consulting. Silent Partner Consulting facilitated four industry workshops and four company case studies. INTRODUCTION
The Victorian Freight and Logistics Council’s FIE The FIE Group is a working group of senior Group has the goal for Victoria. operational managers from across supply chains, representing freight users and “to have the best service levels across suppliers. The Group’s main objective is to the whole freight and logistics sector generate whole-of-supply-chain input and collaboration between industry and government and freight transport chain, including and to identify, review and recommend practical, the most efficient and effective operational improvements in intermodal interfaces between modes, delivering efficiency across Victoria’s freight and logistics tangible benefits to business and the system. community, helping our State to be The FIE Group was tasked to investigate with globally competitive”. industry how two-way truck loading could be increased in and around the Port of Melbourne/ Dynon precinct, amid concerns at the growing freight task and the growth of truck traffic in Melbourne’s inner West and through the port rail precinct.
Figure 1. Port of Melbourne Container Growth Forecast to 2035
International Bass Strait Mainland 9000
8000
7000 3
6000
5000 TEU (million) 4000
3000
2000
1000
0 2010 2015 2020 2025 2030 2035 Year
Source: Port of Melbourne Corporation The FIE Group recognises the road transport The first task was to understand the transport operators in Victoria as being highly efficient. It operations in the precinct. A transport is recognised that elements outside the control operator survey was developed by the of the industry, or non-commercial outcomes, Steering Committee with the assistance of a are generating impediments to optimised truck market research consultant. This survey was movements. deployed as an on-line survey through the Victorian Transport Association, linked with As one FIE Group member observed key industry peak body websites. The survey “Transport company managers don’t was highly successful in capturing a cross- wake up in the morning thinking section of transport suppliers responsible “how inefficient canI be with my for approximately 80 percent of international container movements in the precinct. The vehicle today?” They seek to make a survey format and results are reported in detail commercial return on those assets in the TOP Options Paper released in May 2008, while servicing their clients’ needs.” and summarised in the following section of this report. VTA, 2008 In addition to the survey, four industry workshops were held with transport suppliers The Group was concerned that public undertaking port cartage operations in the information such as the Port of Melbourne precinct, container park operators, freight Container Origin-Destination Study 2002, forwarders and terminal operators. The results the Port Environs Truck Survey 2006 and the of these discussions are also summarised in BITRE’s Waterline publication indicated levels the TOP Options Paper. of truck container slot utilisation of between Case studies were also undertaken to provide 50 and 55%. At face value, this would appear to a more detailed understanding of transport represent inefficiency in transport operations. company’s operations in a series of interviews, The FIE Group tasked and developed a number with the transcripts reported in the TOP of core questions that would be used to better Options Paper. understand truck utilisation in the precinct – The next stage of the project was to take the • Are surveys of trucks an accurate measure of range of options identified and documented in 4 truck utilisation? the TOP Options Paper and to refine these into a workable plan for the industry and governments • Is an empty or partially loaded vehicle to implement. operating in a sub-optimal way? Options were then assessed based on three • What are the commercial and operational core parameters – imperatives that result in part and empty • Their ability to improve truck utilisation; loaded trucks? and • Their commercial viability and practicality; • Is it possible to improve two-way loading? and To answer these questions a Truck Optimisation Plan Steering Committee was formed. A • Their priority for implementation. methodology was developed to determine how A further step was planned undertaking these questions would be approached. Funding preliminary cost:benefit analysis of the was then provided by the Port of Melbourne preferred options, to further refine the plan. Corporation which agreed to support the methodology. This final task is recommended to be referred to the implementation partners identified in the Plan. This recognises a number of recent developments which include;
• The release of the NSW Government’s response to the Independent Pricing and Regulatory Tribunal (IPART) review of the interface between the land transport industries and the stevedores at Port Botany1 and
• The adjudication by the Australian Competition and Consumer Commission (ACCC) in relation to the operation of the 1-Stop vehicle booking system These developments have paved the way for elements of the Truck Optimisation Plan to be taken up directly within industry for implementation. The following Truck Optimisation Plan summary outlines the key initiatives that were identified and that are expected to achieve greater two-way loadings in the precinct. Each initiative is summarised and placed in a matrix which indicates the partners who are best placed to deliver the initiative. The Plan also outlines a role for the FIE Group to assess the Plan’s progress in ensuing years and review the impact of the initiatives.
Measurement of truck utilisation and 5 two-way loading has been mainly via the formal monitoring of vehicle booking system (VBS)outputs in major ports, reported in the Bureau of Infrastructure, Transport and Regional Economics (BITRE) twice-yearly publication Waterline. In Melbourne this has been problematic, as there is a growing trend reported in industry towards usage of non-VBS bookings for evening and night shift bulk runs. Melbourne is also the only container port to have introduced 24/7 days of availability at the DP World terminal. This poses difficulties for the current data collection mechanisms and this report makes some recommendations for further work on this measurement issue.
1 IPART, Reforming Port Botany’s Links with Inland Transport, Final Report, March 2008 FINDINGS AND RECOMMENDATIONS
Industry Leadership In many respects the transport operator is a less powerful commercial participant in the The most compelling finding from the Truck waterfront, with prime commercial relationships Optimisation Plan project has been the between customers, the shipping lines and willingness of the transport companies to invest stevedores. Landside transport competes for capital and energy into optimising transport terminal resources with shipping lines and has operations in the face of seemingly sub-optimal what transport operators often describe as conditions. an “uneven” commercial relationship with the terminal via the vehicle booking system service agreement. The relationships are described in Figure 2.
Figure 2. Commercial and Operational Relationships
Commercial relationship Operational relationship
Shipping Line 6
Empty Container Park Operator Stevedore
Transport Supplier Customs Broker
Importer/Exporter Distribution Centre
Note: Many importers / exporters may be represented by a freight forwarder (particularly for LCL) in which case the forwarder may fill the commercial / operational relationship roles shown for the importer / exporter. This situation is at the core of the port interface The leadership of a small number of large relationship. It was described in the Business metropolitan carriers in achieving this outcome Activity Harmonisation Study (BAHS: 2005) as was clear. These carriers are responsible for being foremost in considerations by transport transporting the majority of containers to and suppliers who are attempting to achieve greater from the wharves. They are also responsible control over their operations. for the major landside facility and equipment investments and for leading practices which Information emerging from the survey and can achieve efficiencies such as night time later the company case studies, indicates the staging of containers and after hours delivery to high level of investment being undertaken by customers. transport companies to gain greater control of their environment and deliver improved service The relationship developed with customers levels to customers combined with efficiency in is the lynchpin in the success of carriers, their practices. where both parties work to develop delivery and despatch operations and to share the This picture was reinforced by the workshops productivity gains. and survey results, which show a pattern of merger and acquisition and pursuit of scale economies, along with the need for capital investment, to achieve commercial viability.
7 Staging of containers has This enables the transport supplier to gain higher levels of control in an environment where become the norm they may have little ability to manage factors Staging of containers has increasingly become such as late arrivals of vessels (reported as the “standard” mode of operation for a number 60% of arrivals); equipment breakdowns at port of transport companies needing to gain higher terminals; delays at gates of overflow terminals; productivity from their assets. They seek to late bookings from customers; and traffic avoid congestion and delays at the port by congestion on the road network. undertaking wharf cartage tasks in afternoon and evening shift periods, storing the containers at their depots and then undertaking pick up and delivery (PUD) for customers at a time mutually agreed.
Figure 3. A common 24 hour port transport operation
23.00 - 07.00
Deliveries to customers 16.00 - 23.00 07.00 - 13.00 Transport Depot
Distribution Centre/Warehouse
Repeat cycle with vehicle 8
Return empty containers Port
16.00 - 23.00 07.00 - 13.00
Container Park
Source: Victorian Freight and Logistics Council 2008 Empty Container Park Limited operating hours at empty container parks were found to be a major deterrent to Arrangements and optimal truck utilisation and continue to present Operating Hours a major frustration for transport operators working in wharf cartage. In Melbourne there has been an increasing shift towards greater utilisation of afternoon and There does not appear to be one clear solution evening shifts for transport operations servicing to this problem. Container park operators have the precinct. The recent introduction of 7 days explained their business imperatives which of availability at the West Swanson terminal has make expansion of operating hours difficult highlighted the need to clear container volumes to justify without additional resources for from the limited capacity at the port terminals. equipment and staff. The current contracts with shipping lines do not address landside logistics The TOP Transport Operator Survey showed that issues for other parties, with the prime concern 48 percent of surveyed companies were using being the ability to handle and supply containers hours outside of the day peak of 06.00 to 15.00 for vessels in a timely manner, rather than hours. There is a growing utilisation of weekday managing PUD for shippers. evenings (30%) and weekday nights (15%).
Figure 4. Empty Container Depots
9 Regulation of truck mass and weight The industry workhorse for precinct transport operations is the articulated semi trailer (76% of surveyed fleet). Subject to container weights this vehicle is capable of carrying two TEUs or one FEU. Ten percent of the transport companies surveyed have sideloading equipment, which further limits the loaded weight and the number of containers carried. An analysis of the container weight and equipment requirements (Figure 5) shows the need for equipment with greater capacity to carry two 40ft containers. Exports are particularly affected by this limitation, given their propensity for higher weights.
Figure 5. Weight and Equipment Capacity Requirements for Containers
Import TEU Import FEU
30 25
25 20
20 15
15 Units (000) Units (000)
10 10
5 5
0 0 Mass Tones Mass Tones Export TEU Export FEU
30 25
25 20
20 15
15 Units (000) Units (000)
10 10 10
5 5
0 0 Mass Tones Mass Tones 0-12 tonnes 13-18 tonnes Greater than 18 tonnes
Note: Tare weights of 2.5 tonne for a TEU and 4.0 tonne for an FEU have been included. This figure shows the actual range of container weights transiting the Port of Melbourne during 2007, against the prevailing capacity of equipment used to transport the containers. The green shading indicates containers that are able to be carried two at a time on a 40ft trailer, thus using all slots, or singly on a rigid tray truck. Containers in the amber range could be carried with a much lighter second container, whereas those in the red range can only be carried singly. 40% of containers are in the weight range where only one can be transported with current articulated equipment due to axle loading limitations. When observed, the truck appears to be underutilised, when in fact it is unable to load additional containers. This leads to commentary that truck utilisation could improve, based on a lack of understanding of the regulatory restrictions on the loading of containers. The introduction of Higher Productivity Vehicles The key survey, case study (HPVs) capable of transporting 2 x FEUs, combined with higher mass limits on selected and workshop findings routes, would result in a reduction in the fleet in relation to transport to manage the current and future transport task. It would also see a reduction in driver operators are as follows – requirement, fuel consumption and GHG • Emergence of innovation, high levels of emissions. investment and scale enterprises in major carrier businesses which dominate transport The need for a neutral supply for international containers; facilitator to drive whole-of- • Significant landside depot capacity exists supply-chain solutions for 30,000 full TEU and 50,000 empty TEU in Melbourne and regional transport depots; It has become evident from work conducted since 2005 by members of the FIE Group that • Investment in depot handling equipment there is a need for a neutral party to drive by participants in the TOP Survey is valued forward change within the community of conservatively at $75 million. Added to this is suppliers and users of the Port of Melbourne/ the investment in transport fleet equipment, Dynon Precinct. land development and administrative infrastructure. This represents a massive A lack of strong commercial imperatives and investment being made to facilitate supply entrenched practices are the major underlying chains; conditions in which the examination of two-way loading potential has been conducted. • Leadership of “B class” carriers (major Incentives to address traffic congestion or metropolitan) in forging after hours and amenity impacts fall to public authorities unless weekend delivery arrangements; a gain at the individual business level can be identified. • Transport suppliers working with their customers to manage evening/night PUD, Government invests in improvement of including growth of sideloader equipment; infrastructure assets. Business focuses on optimising its own domain. Therefore, strategies • 47 percent of imports, 20 percent of exports to deliver wider supply chain efficiencies and and 7 percent of empty import containers are 11 externality benefits remain difficult to drive transiting through the major carriers’ depots across multiple businesses and a network of in Melbourne; physical assets. • Recovery of costs associated with wharf The Port of Melbourne Corporation, a delays is not common, but customers are Government-owned corporation and major prepared to pay for staging and overnight stakeholder in the precinct, is currently storage at depots; pursuing the following strategies to improve two-way loading – • Transport operators commonly have truck utilisation KPIs and show willingness to • Encouraging use of high efficiency container improve rates of two-way loading; road transport and B-double vehicles; • Container park operating hours and • Encouraging stevedore systems and practices customer operating hours are “squeezing” that drive efficiency; and transport operations into limited hours, leading to staging of containers; and • Increasing inbound and outbound load matching through integrated supply chain • Transport operators are confronted by a systems. growing number of regulatory requirements, These strategies put the Port of Melbourne including fatigue management. Staff Corporation in a good position to drive the shortages and increasing operating costs Truck Optimisation Plan as a key player in are prevalent. Mergers and acquisitions implementation and leader in the precinct and pressure to gain scale economies are community. common. The Truck Optimisation Plan is focused 3. Terminal Interface and on 7 strategies under which a number of implementation actions will facilitate enhanced Vehicle Booking Systems truck utilisation. These are as follows – 3.1 A minimum service contract between 1) Customer flexibility stevedores/rail terminal operators and transport operators covering allowance/ 2) Empty Container Park Arrangements and recompense for failure to service vehicles Operating Hours within the allocated time slot at the 3) Terminal Interface and Vehicle Booking terminals. Systems 3.2 Electronic monitoring data available to both 4) Regulation parties on current service levels, so that disputes over truck detention can be easily 5) Collaboration between Transport Operators and more speedily resolved. 6) Labour 3.3 More operational cooperation between 7) Coordination and Review road transport operators and the stevedore terminals as “partners in the 1. Customer flexibility chain” to encourage seamless two-way loading opportunities. This involves the 1.1 Better forward planning and development of a notification system where communication regarding the freight task, terminals advise road carriers of container including timely provision of paperwork stack positions (in general terms) for and scheduling information to allow wharf import and export vessels. This will allow timeslots to be booked. road carriers to match drop off and pickup 1.2 Extended hours of operation at customers’ locations within the terminal(s). This may premises for PUD and/or ability of the result in less travel by the terminal straddle transport operator to access customers carriers, less container dwell time, speedier premises after hours for container PUD. road carrier throughput and improved truck utilisation. 2. Empty Container Park 3.4 Additional VBS functionality to enable carriers, when booking import or export 12 Arrangements and slots, to automatically be offered a reverse Operating Hours load. Carriers can then indicate whether they wish to take up the offer and a 2.1 A fee for service system for transport container would be allocated for loading. operators able to take advantage of later This function would be suitable for larger hours avoiding investment and overheads at scale carriers, with reasonably balanced their own depots. import and export tasks. 2.2 Joint notification of the transport operator 3.5 Additional VBS functionality for the system when the shipper is notified of container to offer a slot nearest the desired time availability at the parks, to provide increased slot for a carrier booking. For example, lead time to arrange transport and match if a carrier seeks to book a slot for 18.00 loadings. and none is available, the system will 2.3 Improved physical layout of container parks. automatically seek and offer a slot nearest One gate in and out creates bottlenecks that time. and creates scheduling and truck utilisation 3.6 Create the VBS function to match import problems. There are now fewer parks, and export slots within a time zone or therefore fewer gates, while there are more consecutive time zones within an individual containers to move. stevedore terminal, and across the two international container stevedoring terminals in the Port (once DP World adopts the 1-Stop VBS in parallel with Patrick). 3.7 Appropriately assess the availability of time 6. Labour slots against the level of demand in all time zones. This is the stevedore’s responsibility, 6.1 Attraction strategies for drivers, including; but a mechanism for carriers to have input mentoring, a skill qualification in transport, to this assessment (at an industry level) and a trainee scheme to expose young would be valuable. people to career options within the transport sector. 4. Regulation 7. Coordination and Review 4.1 Government approval for the wider use of higher productivity vehicles (HPVs) (eg. 40’ X 7.1 It is recommended the Port of Melbourne 40’ trailer combination) capable of carrying Corporation adopts the Truck Optimisation four TEU per vehicle movement (as opposed Plan and integrates this Plan into the to three TEU per B-double with increased Corporation’s strategies for improving GVM). two-way loading and the efficiency of landside logistics in the Precinct. 4.2 Detailed investigation and identification of infrastructure capacity constraints which 7.2 The VFLC FIE Group would then negatively impact on the optimum use of review progress with the nominated HPVs going forward. This analysis should implementation partners and report the be directly aligned to the current and results to the VFLC, Port of Melbourne predicated freight task through the precinct. Corporation and the Minister for Roads and Ports on an annual basis. 4.3 Increased gross mass for road transport combinations. Approval by Government 7.3 Improved measurement of TEU utilisation for greater axle-load allowances for quad per truck over evening, night and weekends axle groups (27 tonnes), as agreed by all and incorporating transport operations Transport Ministers within the Australian from terminal overflow locations (eg POTA). Transport Council (ATC) in February 2007. The detailed Truck Optimisation Plan, anticipating how these recommended actions 5. Collaboration between be achieved and the implementation partners, transport operators is shown on pages 17 to 22. 13 5.1 Larger carriers with depot space and equipment could stage containers as a service for ‘A Class’ and country carriers. This would enable these carriers to offload or pick up containers at the transport depots or intermodal hubs on the edge of the metropolitan area, avoiding the need to access the port precinct. This would save time for country carriers and save driver fatigue. Deliveries to and from the wharves could then be done after hours by the major metropolitan carriers. 5.2 Greater use of load matching software could support internal efficiencies for larger carriers and facilitate collaboration. Figure 6 . Truck Optimisation Plan Overview
- data
THE QUESTIONS COLLECT- case stud DATAies solutions SOLUTION TOP OPTIONS - operator CRITERIA PAPER Are surveys of Transportsurve y Filter truck utilisation Operator Survey • Truck May 08 an accurate - bitre pomc Refine utilisation picture of real Industrysurve ys improvement conditions? Workshops Sort • Commercial Is an empty/part Company Case viability loaded truck Studies underutilised? • Practicality
Is it possible to • Priority improve two-way loadings?
14
SCOPE ISSUES SOLUTIONS CREATION IDENTIFICATION SPECIFIC INITIATIVES implementation of the UNDER EACH ELEMENT truck optimisation plan
Customer Flexibility implementation partners
Empty container park VERIFY arrangements and operating SOLUTIONS hours
Targeted industry consultations Carrier Collaboration plan co-ordination
Labour
Terminal interface and vehicle plan review booking systems
15 Regulation
PLAN FORMATION PLAN ELEMENTS PLAN IMPLEMENTATION conclusion
The timing is favourable to proceed with a Truck Optimisation Plan in the context of investment taking place in channel deepening and rail infrastructure and the emergence of a freight network strategy for public assets. The Council of Australian Governments is also active in the reform of transport regulation and companies are exerting effort in relation to input costs and carbon footprints. The Port of Melbourne/Dynon Precinct Truck Optimisation Plan has been prepared from within industry and is an example of the way in which businesses in the freight and logistics industry are prepared to reflect, contribute and take action to enhance supply chain efficiency. A shared effort and a whole-of-supply-chain approach will lead to real benefits to the transport businesses and customers. Finding solutions from within industry, with the cooperation of government, demonstrates the mature approach towards sustainability and responsibility of the businesses in the Precinct. The scale of investment dedicated to making international seaborne trade efficient being made by transport suppliers is significant. It 16 has been uncovered in the process of analysing truck utilisation. Another major investment by transport operators is in the technical and process innovation, and the high levels of expertise being applied to the task. The challenge is for the community of businesses, regulators, investors and users of the precinct to come together to seek network efficiencies to benefit the overall economic performance of Australia’s foremost international intermodal asset – the Port of Melbourne/Dynon Precinct. This will take leadership by the asset custodian, the Victorian Government, and the asset managers, including the Port of Melbourne Corporation. The Freight Intermodal Efficiency Group will continue to urge the implementation partners to seek optimisation in truck utilisation, recognising that this is not singly the responsibility of transport companies, but all supply chain participants. Strategy Initiative recommended Comments Area Description Implementation Partners
1. Customer flexibility
1.1 Improve forward planning Shippers, customs and communication brokers and regarding the freight task, forwarders, including timely provision of transport paperwork and scheduling companies, information to allow wharf shipping lines timeslots to be booked.
1.2 Extended hours of operation Shippers, 3PL Work being undertaken by at customers’ premises suppliers, transport the Logistics Managers for pick-up/delivery, and/ operators Group as part of BAHS or ability of the transport will assist in providing operator to access modelling to demonstrate customers’ premises after savings from this approach hours for container PUD.
2. Empty Container Park Arrangements and Operating Hours
2.1 A fee for service system Container park This initiative would benefit for transport operators operators, transport from an electronic booking able to take advantage of operators facility to enable transport later hours. This would suit operators to flag volumes, weekend operations or an so container parks could extension of hours to 18.00 match resources. A per or 20.00. container fee could enable additional staff on site.
2.2 Joint notification of the Shipping lines, This would require 17 transport operator when shippers, transport permission from shippers. the shipper is notified of operators Initially an email format in container availability at the current use would suffice, parks, to provide increased with eventual STP format lead time to arrange through an IT solution. transport and match loadings.
2.3 Improved physical layout of Container park This may not be physically container parks. One gate in operators feasible for some parks on and out creates bottlenecks constrained sites. and creates scheduling and truck utilisation problems. There are now fewer parks, therefore fewer gates, while there are more containers to move. Strategy Initiative recommended Comments Area Description Implementation Partners
3. Terminal Interface and Vehicle Booking Systems
3.1 Development of a Stevedores and 1 Stop, The initiatives in this minimum service transport operators, VTA, strategy area will be contract between port PoMC affected by trends in terminal operators and other ports, including transport operators the arrangements put covering allowance/ in place by stevedores recompense for failure in response to the NSW to service vehicles within IPART Inquiry. the allocated time slot at the terminals.
3.2 Electronic monitoring Stevedores and 1 Stop, data available to both transport operators, parties on current service PoMC levels, so that disputes over truck detention can be easily and more speedily resolved.
3.3 More operational Stevedores, transport These initiatives would cooperation between operators, VTA, PoMC indicate a willingness road transport operators by transport operators and the stevedore to work more closely terminals as “partners in with the port terminal the chain” to encourage operators in managing seamless two-way available capacity and loading opportunities. enhance the functionality 18 This involves the of the VBS. development of a notification system where terminals advise road carriers of container stack positions (in general terms) for import and export vessels to allow road carriers to match drop off and pickup locations within the terminal(s). This should result in less travel by the terminal straddle carriers, less container dwell time, speedier road carrier throughput and improved truck utilisation. Strategy Initiative recommended Comments Area Description Implementation Partners
3.4 Functionality to enable Stevedores, 1 Stop, This function would be carriers, when booking transport operators, VTA, suitable for larger scale import or export slots, to PoMC carriers, with reasonably automatically be offered balanced import and a reverse load. Carriers export tasks. can then indicate whether they wish to take up the offer and a container would be allocated for loading.
3.5 Functionality for the Stevedores, 1 Stop, system to offer a slot transport operators, VTA, nearest the desired time PoMC slot for a carrier booking. For example, if a carrier seeks to book a slot for 18.00 and none is available, the system will automatically seek and offer a slot nearest that time.
3.6 Create the VBS function Stevedores and 1 Stop, This could be achieved to match import and VTA, PoMC once DP World has export slots within a time adopted the 1-Stop VBS zone and consecutive in parallel with Patrick. time zones within an individual stevedore 19 terminal and across the two international container stevedoring terminals in the Port.
3.7 Appropriately assess Stevedores, VTA, PoMC the availability of time slots against the level of demand in all time zones. This is the stevedore’s responsibility, but a mechanism for carriers to have input to this assessment (at an industry level) would be valuable. Strategy Initiative recommended Comments Area Description Implementation Partners
4. Regulation
4.1 Government approval Victorian Government, HPV deployment is for the wider use of VicRoads, PoMC, a priority, given the HPVs (eg 40’ X 40’ trailer transport operators, VTA increasing usage of 40ft combination) capable of containers by shipping carrying four TEU per lines vehicle movement (as opposed to three TEU per B-double with increased GVM).
4.2 Detailed investigation VicRoads Some assessment has and identification of been conducted on infrastructure capacity routes nominated by constraints which VTA for deployment of negatively impact on HPVs. Clarification on the optimum use of mass limits associated HPVs going forward. with this assessment is This analysis should be required. directly aligned to the current and predicated freight task through the precinct.
4.3 Increased gross mass Victorian Government, An industry case for for road transport VicRoads the deployment of HPVs combinations. Approval is being undertaken by Government for by VFLC. 20 greater axle-load www.hpvtaskforce.com.au allowances for quad axle groups (27 tonnes), as agreed by all Transport Ministers within the Australian Transport Council (ATC) in February 2007. Strategy Initiative recommended Comments Area Description Implementation Partners
5. Collaboration between transport operators
5.1 Larger carriers with Transport operators A number of companies depot space and are supporting this equipment could initiative and supplying stage containers as a wharf to depot and service for ‘A Class’ and container park transport, country carriers. This as well as wharf cartage would enable these for country carriers using carriers to offload or outer urban depots. pick up containers at the transport depots or intermodal hubs on the edge of the metropolitan area, avoiding the need to access the port precinct. This would save time for country carriers and save driver fatigue. Deliveries to and from the wharves could then be done after hours by the major metropolitan carriers.
5.2 Greater use of load Transport operators matching software could support internal efficiencies for larger carriers and facilitate collaboration. 21
6. Labour
6.1 Attraction strategies Victorian Government, A national approach for drivers, including VFLC, T&L Industry to transport workforce mentoring, a skill Roundtable, VTA, TWU, shortages is underway, qualification in transport, TLISC, TDT Victoria led by the NT and a group traineeship Government. Initiatives scheme to expose young coming from this element people to career options of the National Transport within the transport Policy are likely to impact sector. on this strategy. Strategy Initiative recommended Comments Area Description Implementation Partners
7. Coordination and Review
7.1 The Port of Melbourne PoMC, port user Corporation adopts the community Truck Optimisation Plan and integrates this Plan into the Corporation’s strategies for improving two-way loading and the efficiency of landside logistics in the Precinct.
7.2 The VFLC FIE VFLC FIE Group, TOP Group undertake implementation partners to review progress with the nominated implementation partners and report the results to the VFLC and the Minister for Roads and Ports on an annual basis.
7.3 Improved measurement BITRE, 1 Stop, of TEU per truck Stevedores, PoMC over evening, night and weekends and incorporating transport operations form terminal 22 overflow locations (eg POTA) GLOSSARY
‘A Class’ carriers Standard metropolitan carriers
‘B Class’ carriers Major metropolitan carriers
ACCC Australian Competition and Consumer Commission
ATC Australian Transport Council, consisting of Transport portfolio Ministers from each jurisdiction and the Commonwealth
BAHS Business Activity Harmonisation Study
BITRE Bureau of Infrastructure, Transport and Regional Economics
FEU Forty Foot Equivalent Unit
FIE Group Freight Intermodal Efficiency Group
GHG emissions Greenhouse gas emissions
GVM Gross Vehicle Mass, the total of the vehicle and its load, including container/sideloading equipment
HPV Higher Productivity Vehicle
IPART Independent Pricing and Regulatory Tribunal
KPI Key Performance Indicators
PoMC Port of Melbourne Corporation
POTA P&O Trans Australia 23 PUD Pick up and Delivery
STP format Straight through processing format
T & L Industry Transport and Logistics Industry Roundtable Roundtable
Tare weight The weight of the unloaded container, which ranges from e. 2.5 tonnes for a TEU to e.4 tonnes for an FEU.
TDT Victoria Transport and Distribution Training Victoria
TEU Twenty Foot Equivalent Unit
TLISC Transport and Logistics Industry Skills Council
TOP Truck Optimisation Plan
TWU Transport Workers Union
VBS Vehicle Booking System
VTA Victorian Transport Association
3PL suppliers Third party logistics suppliers, who assist customers to optimise their supply chains or supply warehousing and storage and transport services to customers, often blending customer freight through their facilities to gain efficiencies
APPENDIces APPENDIX A SURVEY OF CONTAINER TRANSPORT OPERATORS THROUGH SWANSON / DYNON PRECINCT
FEBRUARY 2008 Prepared by: Victorian Transport Association (VTA)
Introduction The results present the views of a significant proportion (particularly by container volume During Stage One of the TOP Project, the carried) of the road transport operators who Victorian Transport Association (VTA) was service the landside logistics task through the engaged by the VFLC to conduct an on-line international container terminals at Swanson survey of container road transport operators. Dock within the Port of Melbourne, and through The development of the Survey was overseen the rail terminals in the Port/Dynon precinct. by a working group of experienced practitioners This is the first time in many years that such in wharf-related road transport, rail and a detailed analysis of the road transport task import/export processes, with support from through the precinct has been completed. professional survey designers from Roy Morgan The findings represent a unique, consolidated Pty Ltd. insight and record of the operational practices The questions contained in the Survey were of the survey respondents, including the designed to assist in understanding the underlying reasons why operations occur the physical, business and operational dynamics way they do, and the views of road transport associated with the road freight interface with operators as to how operational efficiencies the Port/Dynon precinct, including the landside might be enhanced. operational practices that impact on this interface. 26 The following Outcome Report presents an analysis of the responses from 49 road transport operators who completed the Survey during the later quarter of 2007. Truck Optimisation Plan (TOP) Project Survey of container transport operators – Outcome Report Company profile
1. Total number of respondents, by Carrier Category (using DPW carrier categorisation):
Category Responses %
Standard Carrier - Metropolitan (‘A’) 17 35
P&O Booking Bureau (‘AB’) 10 20
Standard Carrier - Country (‘AC’) 4 8
Major Carrier (‘B’) 16 33
Rail Only 2 4
Total 49 100
• Represents 27% of registered road carriers in the Port of Melbourne overall
• 16 of the 18 registered “B” class carriers responded to the survey (90%)
• Good spread of responses between large, medium & small companies, as well as results from metropolitan and country operators. 27 2. Number of staff members employed by respondents:
Number of Staff Employed Number of respondents
1 to 5 5
6 to 10 5
11 to 20 5
21 to 50 7
51 to 100 10
More than 100 17
Total 49
• Good spread of business size
• 55% of respondents employ more than 51 employees, while 35% employ more than 100 people. 3. Number of company employed and sub-contracted drivers employed by respondents:
Company employed drivers 867 (67%)
Sub-contracted drivers 421 (33%)
• Demonstrates a considerable use of sub- contracted labour to meet operational demand.
• Would expect that this employment ratio between company employed drivers and contracted labour (owner drivers) would fluctuate throughout the year depending on freight volumes.
4. Location (Post Code) of main operations:
SomertonSomerton Regional respondent locations
ThomastownThomastown MelbourneMelbourne Airport/TullamarineAirport/Tullamarine
Wangaratta Wangaratta SheppartonShepparton Braybrook/Derrimut/AltonaBraybrook/Derrimut/Altona Braybrook/Derrimut/AltonaBraybrook/Derrimut/Altona BayswaterBayswater BallaratBallarat PortPort ofof MelbourneMelbourne Warrnambool Scoresby/KnoxfieldScoresby/Knoxfield MoorabbinMoorabbin ClaytonClayton SouthSouth Legend Rail
Major road BraesideBraeside 28 Road under construction DandenongDandenong Melbourne 2030 Growth Area 0 5 10 km Freight Generating Areas
Major area
Medium area
Survey Respondents
8
4 Metropolitan respondent locations 1 HastingsHastings
Truck Optimisation Plan - Melbourne Port-Dynon Precinct Survey of Transport Operators - Respondent Locations
• Number of country locations listed above differs from country carrier categorisation in question 1 due to Wangaratta operator having a depot also in Laverton, and Shepparton carrier also having metropolitan location. 5. Description of company operations:
Number of Description of Operations Respondents
Wharf Carrier 37
Pack / Unpack Station 25
Logistics Provider 24
Warehouse Operator 21
Freight Forwarder 14
Container Park 8
Exporter 7
Rail Carrier 7
Importer 5
Total: 148
• Multiple answers allowed on this question (hence greater number of responses).
• Demonstrates the diversity of the respondents’ business activities and “value- added” services offered within the container transport chain.
6. All of the respondent companies are frequent visitors / users of the Swanson / 29 Dynon Precinct, with 65% of respondents (32 in number) visiting daily, 29% (14 in number) 5 to 6 days per week, 4% (2 in number) 3-4 days per week and 2% (one in number) 2 days per week. Operational Capacity 8. Container holding / storage capacity in Of Respondents: transport yards of respondents (expressed in TEU – Twenty-foot Equivalent Unit):
7. Estimation of containers moved through the • Full TEU (total of all respondents) Swanson / Dynon Precinct by respondents = 28,725 TEU in the last 12 months = 989,471 containers. • Empty TEU (total of all respondents) • Using a container to TEU ratio of 1.36 = 41,697 TEU (provided by the Port of Melbourne Corporation), the estimated number of TEU This represents a significant “off-wharf” moved through the Precinct by respondents holding capacity for TEU transiting through in the last 12 months = 1,345,680 TEU. the container transport chain, and for “value-added” services being provided • Given that the vast majority of respondents to clients by container road transport were involved in transport operations through operators. the international container terminals at This capacity represents a considerable Swanson Dock (only two, small, respondents investment by transport operators in the were “rail only” through the Dynon rail yards), space, ground treatment and equipment the survey sample represents some 80% needed to safely handle, lift and store of the international container throughput containers on-site in their yards. of the Swanson terminals in 2006/07 of 1,687,000 TEU (total TEU throughput derived Until now, this capacity has largely gone from PoMC Annual Report 2006-07). unnoticed or unaccounted for in port planning considerations. • The 16 “B” class carrier respondents were responsible for the movement of Additionally, significant capacity exists 857,020 containers through the Precinct, with other parties in the transport chain, representing 86.6% of the total movements including the “customers” (importers & recorded by respondents. In TEU terms, this exporters, and, in some cases, freight equals 1,165,547 TEU. forwarders). However, quantifying this capacity was outside of the scope of the • Therefore, the 16 “B” Class carriers who Survey. 30 responded to the survey are responsible for the movement of approximately 69% of the total international TEU throughput of the Swanson international container terminals.
• If the next nine (9) highest respondents (metropolitan “A” class carriers) measured by total containers moved are added to the volumes of the 16 “B” class carriers noted above, the total number of containers moved by the top 25 respondents to the survey = 930,320 containers or 94% of the total movements recorded by respondents.
• Therefore, the top 25 respondents to the survey can be estimated as having moved 1,265,235 TEU or approximately 75% of the total international throughput of the Swanson international container terminals in 2006/07. 9. The survey asked specifically about the use of various types container handling equipment as an example of the level of investment undertaken by transport operators to service the freight task. In total, the respondents to the survey had invested in:
Container Handling Number of Estimated value Total $ Equipment Type Units per unit(1) Value
Reach-stackers 47 $500,000 $23.5m
Container forklifts 176 $250,000 $44.0m
In-yard side-loaders 24 $180,000 $4.3m
Mobicons 3 $150,000 $0.45m
Straddles 2 $1,000,000 $2.0m
Total 252 $74.25m
(1) The values assigned to the types of equipment listed is based on conservative estimates and expressed as an average, taking into consideration the range of equipment in use at various stages of their economic lives. If values were to be expressed on a replacement basis, it is considered that the total invested value would be substantially higher.
10. The total number of prime movers and trailing equipment operated by survey respondents were as follows: 31
Prime Movers 796
Rigid Trays 106 7%
Articulated Trailers** 1170 76%
B-double Trailer combinations 231 15%
Super B-double combinations 33 2%
Total 1540 100%
** Articulated trailers include 17 x 20’ side-loader trailers, and 113 x 40” side-loader trailers. • The percentage profile of vehicle / trailer type Freight Task Profile operated by respondents equates readily to the profile of vehicle use observed in 11. The survey asked respondents to provide the comprehensive 2002 Port of Melbourne a profile of their container freight task Container Origin Destination Study, albeit activities in 2006/07, including the that there has been an observed increase percentage of imports and exports (full in the (restricted) use of Super B-double & empty) moved through the precinct, as combinations, offset by a slight decrease in well as the percentage of those containers single articulated trailer use. which were moved via a transit facility • On average, respondents had a prime mover (i.e. transport yard), as opposed to direct (796 units) to articulated trailer (1434 units) deliveries to either customer, wharf or ratio of 1:8. This demonstrates an effective empty container yard. ratio of trailing equipment to prime mover, The rationale for these questions was allowing flexibility in fleet use, while not to highlight the fact that commercial holding excess equipment on company asset relationships & characteristics (i.e. client registers. profile and activity in terms of imports & exports) dictate the operations of wharf • The fact that over 10% of the articulated container road freight operators. This, in trailers used by respondents are side-loaders turn, has an impact on the ability of the recognises the capability of this equipment individual operator to undertake two-way to improve productivity and transport loading operations to and from container operational flexibility. terminals, and generally within the port precinct. For example, if a road freight operator only services export clients (i.e. 100% export and 0% import), there is zero ability for that operator individually to undertake a two-way full loading of exports & imports in the one vehicle movement within the precinct.
32 12. The respondents recorded an extremely broad range of freight task profiles on the spectrum between 100% export movements through to 100% import movements (full & empty containers).
• It is illustrative to review the spread of freight task profiles for the 25 top survey respondents (including the 16 B-class respondents and the next 9 highest volume respondents as described in point 7. above):
• The table above demonstrates that there are very few higher-volume carriers who are at or very close to “equilibrium” between import/ export containers moved.
• Carrier “23” listed above had a 50/50% spilt between the import and export task, while carrier “6” (for example) had only an export task profile. Whereas some carriers (i.e. 8, 15, 20, 21, etc) have a predominance of import- related activities. Percentage of business activity 100 80 60 40 20 0 20 40 60 80 100
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Carrier Number 16 17 18 19 20 21 22 23 24 25
% of Imports % of Exports (Full & Empty & Rail Pick-up) (Full & Empty & Delivery)
• 10 respondents (numbers 1, 3, 4, 5, 9, 10, 17, Transit Activities 18, 23 & 24) had a profile within the range between 60% imports to 40% exports and 13. An important objective of the survey was 40% imports to 60% exports. These carriers to measure the amount of containers may have a greater chance of undertaking which are transited via interim locations two-way loading operations in the precinct. (i.e. transport operator’s yards) during the • However, there are many variables impacting import container & export container cycles on the ability of carriers to undertake two-way (both full and empty). loading of imports & exports other than The survey results show that a considerable 33 simply their freight task ratios. These include: percentage of full imports and full exports, −− Import container availability from and, to a lesser but not insignificant extent, discharged containers verses export empty import & export containers, are receival opportunities for vessels transited through transport operator’s yards accepting exports - misalignment; prior to final delivery. −− Unable to match time slots; • Across all respondents, on average, 40% of import containers were transited through −− Availability of paperwork and/or transport operator’s yards in 2006/07, while electronic releases from clients; 17% of export containers were transited. −− Spilt of task between different terminals (both the international • In the case of empty import containers, container terminals and the various 7% were transited (prior to final off-hire railheads in the precinct); at the nominated empty container depot), while approximately 8% of empty export −− Adequacy of the trailing equipment to containers were transited. undertake the two-way loading task (including 40’ versus 20’ container • If the focus of the analysis is confined to task, weight (mass) considerations, the top 25 carriers (by volume – see point and height considerations). 7. above), on average, 47% of import containers, 20% of export containers, and 7% of empty import containers transited through their yards. • However, expressing these activities in terms 16. Approximately half of the responses as of averages across all respondents masks the classed above (“better use of equipment”, fact that some operators (both high volume “available time slots at port terminals” and and lower volume carriers) have aligned “avoid time up at port terminals”) relate their practices predominately towards transit to road transport operators seeking to operations: maximise vehicle and equipment use while dealing with the operational dynamics of −− Eleven (44%) of the top 25 interacting with the port & rail terminals. respondents (by volume) transited import containers more than 70% of On the other hand, transport companies the time, while three (12%) transited seek to service their customers’ needs in an export containers more than 70% of operational climate where the mismatch of the time. operating hours exists across the container transport logistics chain (“customer receival −− 35% (nineteen) of all respondents / dispatch times” and “empty container transited import containers more operating hours”, etc). than 70% of the time, while 12% (six) transited export containers more As container volumes have grown (and than 50% of the time. continue to grow), levels of container “transiting” increase as transport 14. The survey asked respondents to cite operators manage competing interests the reasons why they conducted transit through the logistics chain, deal with the activities: mismatch of operating hours, seek levels of operational efficiency in receiving & Better use of equipment 15% delivering containers to and from the port terminal operators, and strive to meet Customer’s receival/ 20% customers’ expectations for on-time dispatch times deliveries and other “value-added” services Empty container park (including freight tracking, unpack/pack 18% operating hours & warehousing needs, and regulatory requirements such as AQIS inspections & Available time slots at container washing, etc). 20% 34 port terminals 17. It is interesting to note that while only cited Avoid time up at port as a minor reason for the interim staging 14% terminals of containers, “driver availability” (or the lack thereof in fact) has started to become a Driver availability 2% factor that impacts on operational practices. Responses regarding labour shortages are Other(*) 11% highlighted in more detail below. (*) “Other” included use of midnight shifts, as well as respondents for whom the question was not applicable.
15. These findings align with the responses to a survey on technology use undertaken by the Victorian Transport Association (VTA) for the Victorian Government’s “Smart Freight” Initiative in 2004 (see Smart Freight Reports - Victorian Department of Transport (DOT) website at www.transport.vic.gov.au) 18. Given the prevalence of transit operations, 19. A separate question sought to gauge the the survey sought to establish the extent degree to which companies invoice their to which road transport operators charge customers for the cost of truck detention their clients for the added costs involved in at the wharf. This is a separate cost from transit operations (including additional lifts, transit operations, and relates to the costs on-ground storage, greater fuel & labour associated with trucks being delayed at the usage and added administration). wharf longer than anticipated (due to truck queues and unforeseen delays). Asked whether the company invoices the cost of transit storage and lifts to the Asked whether the company invoices the customer, the following responses were cost of truck detention at the wharf to the received: customer, the responses were:
Always 20% Always 8%
Mostly 29% Mostly 16%
Occasionally 25% Occasionally 14%
Rarely 12% Rarely 27%
Not at all 12% Not at all 35%
Can’t say 2% This shows that three-quarters of respondents only pass on wharf detention This reveals that almost 50% of costs to customers occasionally, rarely or respondents mostly or always charge for not at all. transit operations. However, it is disturbing that similarly almost 50% only charge for This is again due to the competitive rates the additional costs of transit operations marketplace, but also because customers occasionally, rarely or not at all. view the operational relationship between the road transport operator, port terminals This demonstrates that many transport and other components in the land-based operators are “absorbing” the additional container logistics chain (including empty 35 costs of transit operations given the container parks) as one to be managed by competitive nature of transport rates in the the road transport operator effectively and marketplace. efficiently. Yet, this is despite the lack of any The question becomes whether this direct commercial contracts between many practice of not recouping the real additional of these parties in the chain. costs of transit operations is unsustainable, Therefore, the costs associated with particularly for those respondents who unexpected delays, in the vast majority, are answered “rarely” or “not at all” (24%). absorbed by container transport operators. Again, if congestion and operational delays become more prevalent with increased container trade volumes, the question is whether not charging for such delays becomes unsustainable. Technology Uptake Access Times to the Swanson / Dynon Precinct 20. The survey asked several questions aimed at gauging the level of technology use at 23. The survey sought to identify the spread the wharf interface amongst container of hours of work for respondents when transport operators. One question related accessing the Swanson / Dynon precinct. to the fitting of transponders to trucks (for Respondents were asked to estimate the electronic recognition of the vehicle at the times that their vehicles accessed the wharf gate to aid in paperless processing), precinct during the month of July 2007. while two others gauged the level to which electronic import delivery orders are Overall, the following spread of access beginning to be used in the import container times was estimated by respondents: transport chain. Access Time Percentage 21. Overall, 58% of the trucks operated by (& Day) Zones respondents were fitted with transponders. However, in relation to the trucks operated Day (0600 to 1500 hours) 52% by the top 25 respondents (by volume), 74% were fitted with transponders. Weekday Evening (1500 30% to 2300 hours) 22. The estimate of the percentage of customers using electronic import delivery Weekday Night (2300 13% orders was 32% overall, with a similar to 0600 hours) percentage (35%) being the estimate of respondents’ operational use of electronic Saturday 4% delivery orders. Sunday 1% It is expected that the percentage of electronic import delivery order use (among Total 100% transport operators and their clients) will continue to rise as more shipping lines In relation to the top 25 respondents (by adopt the use of electronic delivery orders. volume), access during the day was the 36 same (52%) as that recorded overall, slightly less during the evening slots (23%), but higher during the night shift (17%) and on Saturdays (7%). Sunday access also represented 1% for the top 25 carriers (equals 100%). There are several respondents who recorded significant use of weekday night time access opportunities into the precinct. There were seven respondents who recorded the use of night time slots for 25% or more of their operations in the precinct. In total, these seven respondents were responsible for 457,000 container movements through the precinct per annum (or more than one third of the total volume carried by the top 25 respondents in 2006/07 (see point 7. above)). Any comparison between the TOP survey If the percentage of Day and Evening time results and VBS timeslot statistics slot usage is combined (to take account incorporated into the container terminal of the major methodological difference landside performance indicators produced between the two statistical analyses), the by the Bureau of Transport & Regional results are broadly comparable (i.e. 84% of Economics (i.e. BTRE – Waterline 43, use within Waterline 43 for Day and Evening January 2008 – www.btre.gov.au) needs shifts combined, compared to 82% in the to take account of the different treatment TOP Survey, 11% Night shift in Waterline of Weekday, Evening & Night shift hours 43, compared with 13% in the TOP Survey, between the two reports. and the same percentage outcomes for Saturday and Sunday use). The BTRE treats the Weekday shift as the time-zone between 0601hr to 1800hr, Both the BTRE Waterline and TOP Survey Evening from 1801hr to 2400hr and Night results show that road transport operations as 2400hr to 0600hr. In the TOP survey, the associated with the Port of Melbourne have Weekday shift is calculated from 0600hr to moved considerably towards a 24 hour / 5 1500hr, Evening from 1500hr to 2300hr, and days a week (24/5) operation, particularly night from 2300hr to 0600hr. led by the changed operational practices of the higher-volume wharf road transport The table below compares recorded VBS operators. However, there is significant time-slot usage between the survey results scope overall to exploit the operational (July 2007) and the June 2007 quarter capacities in the wharf interface during the results published in the BTRE’s Waterline 43 night shift and on weekends. Report (January 2008): The challenge is to find ways in which to utilise latent 24/7 time-slot capacity in circumstances where the mismatch of operating hours across the landside container transport chain militates against this opportunity (thereby adding to transit operations and additional costs).
Waterline 43 (Jun 07 qtr) % time slots TOP Survey % time slots 37
Day (0601 – 1800) 65% Day (0600 – 1500) 52%
Evening (1801 – 2400) 19% Evening (1500 – 2300) 30%
Night (2400 – 0600) 11% Night (2300 – 0600) 13%
Saturday 4% Saturday 4%
Sunday 1% Sunday 1% Empty Leg / One-Way Empty Running
24. The survey asked respondents to estimate for operations undertaken in July 2007 the percentage of truck trips which involved an empty leg / one way empty running. Overall, the following results were received:
Empty One-Way Running (%) No of Responses % of Responses
1-10% 6 12.24%
11-20% 4 8.16%
21-30% 7 14.29%
31-40% 3 6.12%
41-50% 5 10.20%
51-60% 3 6.12%
61-70% 8 16.33%
71-80% 4 8.16%
81-90% 4 8.16%
91-100% 4 8.16%
Can’t Say 1 2.04%
Total 49 100%
38 Bulk Runs
25. The survey asked respondents to estimate Empty Import Containers: Only 4 the number of bulk runs undertaken by the respondents (8%) recorded bulk runs for company in July 2007. empty containers into the Port, with the average number for the month being 6 The results indicated that the use of bulk occurrences. runs, and their frequency, was not high. Empty Export Containers: Only 5 Import Containers: Only 11 respondents respondents (10%) recorded bulk runs for (from the total of 49 or 22%) recorded bulk empty import containers, with the average runs number for the month being 10. for full import containers through the Port in July 2007, with the average number for Delivery to Rail: Only one respondent the month being 8 occurrences. (2%) recorded bulk run deliveries to rail in July 2007, but this operator undertook this Export Containers: Only 6 respondents activity 30 times in that month. (12%) recorded bulk runs for full export container deliveries into the Port in July Pick Up from Rail: Only one respondent 2007, with the average number for the (2%) recorded a bulk run pick ups from rail month being 4 occurrences. in July 2007, but this operator undertook this activity 30 times in that month. 26. When asked what constraints or limitations were experienced in the use of bulk run operations, the following responses were received:
Constraints / Limitations in the Use % of No of Responses of Bulk Runs Responses
Customers’ requirements & delivery schedules 13 15.66%
Resources applied at the port terminal 11 13.25%
Can’t say 10 12.05%
Insufficient volumes 9 10.84%
Other(*) 9 10.84%
Allocated times for bulk runs 8 9.64%
Resources applied at the empty container yard 7 8.43%
Shipping schedules 7 8.43%
No constraints 4 4.82%
Resources applied at the rail terminal 3 3.61%
Lack of own labour 1 1.20%
Lack of own equipment 1 1.20%
Total 83 100%
(*) “Other” included comments about the cost/benefit value of bulk run activities taking account of additional costs in fuel, wages and other operating costs, as well as indications that bulk run operations were not applicable to the respondent or their client. 39
Skills & Labour Shortages:
27. The survey took the opportunity to canvass 29% of respondents acknowledged general feedback from respondents difficulties in employing sub-contracted regarding the type and extent of skills & drivers, indicating a tightening in the labour shortages within container road availability of sub-contracted labour. transport companies. 26% of respondents had experienced When asked whether the company had difficulties in employing fleet controllers, experienced labour shortages in the last while 16% found difficulties in employing 12 months, 34 of the 49 respondents (69%) reach stacker / heavy forklift operators. answered “yes”. However, respondents were not having too The category of labour where demand is many difficulties employing VBS booking significantly outstripping supply is company clerks and container yard workers with employed truck drivers, with 47% of only 6% of respondents indicting that they respondents indicating labour shortages for had experienced labour shortages for these any allocated shift, while a further 16% of two employment categories. respondents expressed difficulties in filling driving positions for evening, night and weekend shifts. 28. When asked to indicate the three most common labour supply issues being experienced, the following responses were received:
Labour Supply Issue No. of Responses % Responses
No Maritime Security Identification Card (MSIC) 28 25.93%
Lack of experience in wharf / rail work 22 20.37%
Poor work ethic 15 13.89%
Not prepared to work night shift 14 12.96%
Not prepared to work weekends 12 11.11%
No labour issues 9 8.33%
Other(*) 6 5.56%
Can’t say 2 1.85%
Total 108 100%
(*) “Other” included variations of answers about driver shortages generally, the lack of qualifications & experience, and the lack of young drivers. While not querying the national security objectives of the Maritime Security Identification Card (MSIC), a real issue has emerged regarding the length of time it takes for an MSIC to be issued from the 40 date of application lodgment to date of receipt. MSIC’s are now a fundamental prerequisite for truck drivers (and others) requiring unaccompanied access to secure maritime facilities. Therefore, undue delays in obtaining the necessary security clearances and the administrative task of issuing MSICs creates an undue hurdle to employment in the sector. Strategies & Incentives to • Better understanding and awareness by Improve Truck Optimisation customers of how the wharf & rail terminals work, and what effect their actions have on other parties in the chain 29. Three questions in the Survey sought feedback and suggestions from • Focus on other aspects of supply chain respondents regarding: efficiency other than price
(a) What strategies and incentives could be • Better freight rates used to encourage customers to assist in truck optimisation?; • Extended hours of operation at customers’ premises for pick-up/delivery, or ability of the (b) How could Vehicle Booking Systems transport operator to access premises after (VBS) be improved to assist with truck hours for container exchange / drop out, etc utilisation?; and (c) What suggestions do you have for • Greater use of shipping lines prepared to reducing empty or partially loaded consider container “triangulation” (i.e. re-use running of trucks in the Port/Dynon without the need to de-hire / pick-up from precinct? empty container park).
30. The following dot points present a summary 31. Overall, respondents considered that of the major themes emerging from the effective Vehicle Booking Systems (VBS) responses regarding customer assistance were vital to their ability to operate on & off in improving truck utilisation: the wharfs effectively. Day to day operations for many of the • Reduction in rates for night deliveries to respondents are based largely around customers to reflect the reduction in costs to what VBS slots the company has been able the operator due to lighter traffic & less (or to secure. Several comments made by nil) transit costs respondents reinforce this point: • Better forward planning and communication regarding the freight task, including timely “Getting the timeslot you want is very provision of paperwork and scheduling rare … so basically you plan your day information to allow timeslots to be booked around your timeslot commitments at 41 • Timely notification of import container the wharf.” arrivals and export schedules “Planning is optimised (by) working around the import & export slots booked. If (the) plan doesn’t work out due to insufficient slots, (we) usually negotiate with customers around the times that (we) can get.” “Without the timeslots, we don’t work More cooperation between road transport – simple as that. If we get the slots we operators and the stevedore terminals as “partners in the chain” to encourage want, we get excited and the vehicles seamless back-loading opportunities. The run how we want them to. A lot of the development of a notification system where time we take the slots that we can get terminals advise road carriers of container rather than the ones we would like stack positions (in general terms) for import and export vessels to allow road carriers to ... it’s a bit of a juggle, but most of the match drop off and pickup locations within time we do OK.” the terminal(s). This would result in less travel by the terminal straddle carriers, 32. Comments about improvements to the VBS less container dwell time and speedier road featured heavily in suggestions on how to carrier throughput. improve truck utilisation in the precinct: Better cooperation between road transport Create the VBS function to match import operators for the timely movement of and export slots within a time zone containers, particularly empties. This and consecutive time zones (within an would require a “consortia” approach, individual stevedore terminal, and across underpinned by clear commercial business the two international container stevedoring rules & agreements (that met competition terminals in the Port once DP World adopts laws), and a linking “technology” to the 1-Stop VBS in parallel with Patrick). administer this “trade”. This has the potential to improve two-way Extended operating hours for empty loading. container parks. This may also be a feature Appropriately assess the availability of time of the “consortia” approach mentioned in slots against the level of demand in all time the dot point above, whereby empty parks zones. This is the stevedore’s responsibility, have commercial arrangements with road but a mechanism for carriers to have input carriers to generate sufficient volumes to this assessment (at an industry level) of empty container returns to justify would be valuable. the extension of empty container depot operating hours. Differential VBS pricing between Day, 42 Evening, Night and Weekend timeslots. Extended container park locations (i.e. in a Provide incentives for transport operators south eastern suburb such as Dandenong, to take up night & weekend timeslots, and in the north west (i.e. Somerton / including improved turnaround times and Campbellfield)). discounted VBS pricing. Terminals to allow empty bulk runs to be combined with full bulk runs. For instance, 33. Final suggestions on other ways to the bulk movement of empty containers for enhance truck utilisation were: export loading, combined with the same Quicker turnaround times at the Dynon vehicles picking up full import containers in railheads. Better access to Dynon rail- a two-way loading situation. yards during shunting, and extended pre- Transport operators able to hold empty receival windows to allow earlier delivery of export containers for longer awaiting the containers. export vessel’s receival window without incurring demurrage (detention charges on the length of time that the container is held) from shipping lines. Streamlined operation of the POTA terminal when used as a “spill-over” receival and pickup facility by DP World due to land constraints at DPW West Swanson Terminal. Government approval for the wider use of High Efficiency Container Transporters (HECTs) vehicles (40’ X 40’ trailer combination) capable of carrying four TEU per vehicle movement (as opposed to three TEU per B-double). Increased mass for road transport combinations, including approval by Government for greater axle-load allowances for quad axle groups (27 tonnes – as agreed by all Transport Ministers within the Australian Transport Council (ATC) in February 2007). Extended AQIS operating hours for rural container tailgating. Continued encouragement for all in the transport chain to adopt paperless operations (i.e. the use of electronic import delivery orders (eIDOs), combined with transporter vehicle entry into port terminals). Finally, in relation to the “next steps” in developing a Truck Optimisation Plan, the following respondent’s comment reinforces the need for practical, “real world” solutions and outcomes:
“I believe (anybody) putting together a plan towards looking to the future would benefit greatly from spending 43 real time in an operations area to see what happens in the “real world of being a wharf carrier.” What could be learnt from such an experience would be extremely beneficial to the process. PORT OF MELBOURNE/DYNON PRECINCT TRUCK OPTIMISATION PLAN:
CONTAINER TRANSPORT OPERATORS QUESTIONNAIRE
This questionnaire is to gather some data from transport operators about patterns of truck utilisation in the Port and Dynon precinct, Port of Melbourne.
If your company’s vehicles operate in the Port/Dynon precinct, this questionnaire is for you.
The questionnaire is part of a project called the Truck Optimisation Plan, to generate efficiency improvements within industry, led by industry.
The project is managed by the Victorian Freight and Logistics Council, and the Victorian Transport Association has been engaged to conduct the survey.
We are confident that the answers to this questionnaire will help explain the realities and complexities of transport operations and lead to practical improvements.
It has been reported by analystscounting containers per truck,that empty and partial loading of trucks to and from this precinct is common. We would like to explain why this occurs, told by your answers and comments and by operators who will take part in interviews.
The information you provide will be treated with strict confidence. It will remain commercial in confidence and will be only used to be collated into overall statistics and results. You can participate in this questionnaire without providing any identifying information if you desire.
The questionnaire will take around 15 minutes to complete. You may need to combine information from your operations manager, fleet controller and VBS booking clerk to complete the questions. 44 You can complete this survey on line using the link http://www2.esurveys.com.au/surveyfb4/index.cfm?SID=1073
Or you may print the PDF version of the questionnaire to complete it manually. You can then fax your completed questionnaire to Lucille Bolger on fax 03 9646 8596.
At the end of the questionnaire there is an optional section which you can complete to take part in case studies and to keep up to date with the project.
If you have any difficulties with the questionnaire please contact Lucille Bolger on 03 9646 8590. If you have any questions about the Truck Optimisation Plan, please contact the VFLC Secretariat on 03 9655 6457. Company Profile
Using your P&O/DPW Ports Carrier Categories as a guide, is your company -
• Standard Carrier - metropolitan (‘A)
• Standard carriers using P&O booking bureau (‘AB’)
• Standard carrier - country (‘AC’)
• Major carrier (‘B’)
• Rail only carrier
How many staff members are employed by your company?
• 1-5
• 6-10
• 11-20
• 21-50
• 51-100
• more than 100
• Can't say
Now, thinking specifically of the number of drivers using your Port/Dynon precinct operations:
How many company employed (and agency casual) drivers did your company use each day?
Average of July 2007
How many contracted drivers (owner drivers) did your company use each day?
Average of July 2007
What is the postcode of your main operations? By main operations we mean the depot or site of 45 your transport operations?
Post Code or Suburb
What is the holding capacity in your company's transport yard for containers (i.e. number of TEU)?
Number of full TEU
Number of Empty TEU: How would you describe your company? (multiple choices allowed)
• Wharf carrier
• Freight forwarder
• Pack/unpack station
• Wharehouse operator
• Importer
• Exporter
• Container park
• Rail carrier
• Logistics provider
What equipment is used in your company's transport yard for handling containers?
Number of Forklifts: Number of Reach stackers:
Number of In-yard side loaders: Other (please specify):
NOTE: The rest of the questionnaire relates only to your Port/Dynon precinct-related container movements
In the last 12 months how many containers do you estimate your company has moved through the Port/Dynon precinct? Please include all imports, exports, empties and Dynon rail terminal pick up and delivery containers.
Number of containers:
Of the total number of containers your company has moved through the Port/Dynon precinct in the last 12 months, what percentage of containers has been (please estimate if not sure):
Total of responses should equal 100%
Imports
Exports 46 Empties (import)
Empties (export)
Dynon rail terminals delivery
Dynon rail terminals pick up
Other:
Total: Based on you previous answers of the total number of containers, please estimate the percentage of containers which were 40ft:
Total of responses should equal 100%
Imports
Exports
Empties (Export)
Empties (Import)
Dynon rail terminal delivery
Dynon rail terminal pick up
Other
Can't say
Total:
Staged or Direct Movements
What percentage of containers transported in your Port/Dynon operations for IMPORTS do you move via a transit facility?
Total of responses should equal 100%
Imports
Exports
Empties (Export)
Empties (Import)
Dynon rail terminal delivery 47
Dynon rail terminal pick up
Other
Can't say
Total: What are the three main reasons you use transit facilities? Please select no more than 3 reasons
• Better utilisation of equipment
• Customer's receival / despatch times
• Empty container park opening hours
• Lack of available timeslots at port terminals
• Avoiding time up charges at port terminals
• Driver availability
• Other (please specify):
Not at Can't Always Mostly Occasionally Rarely all Say Does your company invoice the cost of transit storage and lifts to the customer? Does your company invoice the cost of truck detention at the wharf to the customer?
Fleet Characteristics Which of the following vehicles and equipment does your company use for Port/Dynon related transport?
Prime Mover Number (owned hired, or used regularly):
Rigid Tray Number (owned hired, or used regularly):
Articulated semi trailer Number (owned hired, or used regularly):
B Double Combination Number (owned hired, or used regularly):
Super B double Number (owned hired, or used regularly):
Sideloader 20ft Number (owned hired, or used regularly):
Sideloader 40ft Number (owned hired, or used regularly):
Can you estimate the percentage of your Port/Dynon trucks that are fitted with transponders suitable for port terminal access? 48 % Can you estimate the percentage of your customers using electronic import delivery orders?
%
Can you estimate the percentage of your Port/Dynon operations that use electronic delivery orders?
% At the Port/Dynon precinct Which of these areas in the Port/Dynon precinct do your vehicles access when transporting containers? (please tick all the relevant locations)
• Dynon rail terminals Swanson Dock East terminal
• Swanson Dock West terminal Webb Dock Coastal terminals
• Appleton Dock - ANL Victoria Dock
• Patrick Superpark POTA
• Patrick Appleton Park Pack - Unpack depots
• Murray Goulburn Can't Say
• (Please specify)
In general, how often do your vehicles access the Port/Dynon precinct?
• Daily
• 5-6 days a week
• 3-4 days a week
• 2 days a week
• Once a week
• At least once a fortnight
• At least once a month
• Less often than once a month
• Can't say
During July 2007, at which of these times did your company's vehicles access the Port/Dynon precinct? Note: please consider entry times only if access crosses over two time periods
Total of responses should equal 100%. 49 Weekday Day (0600-1500hrs)
Weekday Evening (1500-2300 hrs)
Weekday Night (2300-0600hrs)
Saturday
Sunday
Total: During July 2007, what percentage of your company's Port/Dynon precinct trips involved an empty leg/one way empty running?
Please estimate if not sure
1-10% 11-20% 21-30% 31-40% 41-50%
51-60% 61-70% 71-80% 81-90% 91-100%
Cant Say
Bulk Runs During July 2007, how many bulk runs did your company undertake for each of the following:
Imports
Exports
Empties (Import)
Empties (Export)
Deliveries to rail terminals
Pick ups from rail terminals
Other
Which (if any) of the following constraints or limitations does your company experience in use of bulk run operations?
• Resources applied at port terminal Resources applied at rail terminal
• Resources applied at the container yard Customer's requirements and delivery schedules
• Shipping schedules Insufficient volumes
• Lack of own labour Lack of own equipment
• Allocated time for bulk runs Can't Say
• No constraints
50 • Other (please indicate)
Vehicle Booking System Thinking specifically about time slots used when booking through the vehicle booking system: During July 2007, when booking through the VBS, which of these time slots did your company use at the port terminals? Please estimate the percentages.
Total of responses should equal 100%.
Weekday Day (0600-1500hrs)
Weekday Evening (1500-2300 hrs)
Weekday Night (2300-0600hrs)
Saturday
Sunday
Can't say
Total:
How does the VBS impact on your vehicle optimisation? ______
Please provide any suggestions as to how the VBS could be better used to improve truck utilisation? ______51
Labour In the last 12 months, has your company experienced labour shortages?
• Yes
• No
• Can't say If you answered "yes" to the previous question, what positions are difficult to fill and on which shifts?
If you answered "no" please tick the "n/a" box.
Day Twilight Night Weekend Anytime NA
Fleet controllers
Drivers
Subcontracted labour Reach stacker/ heavy forklift operators Container park workers
VBS booking clerks
Please indicate the labour supply issues your company is experiencing:
• NO MSIC card
• Lack of experience in wharf/rail work
• Poor work ethic
• Not prepared to work weekends
• Not prepared to work nigh shift
• No labour issues
• Can't say
• Other (please specify)
Please list the 3 most common labour supply issues your company is experiencing. ______
52 Customers What strategies and/or incentives would you use to encourage your customers to assist you to optimise your truck utilisation? Eg: free/extended storage
______Looking to the future Can you provide suggestions for reducing empty or partially loaded running of trucks in the Port/Dynon precinct?
______
Do you have any other comments? ______
Would you like to take part in a case study and be kept informed about the project?
If Yes, please leave your contact details, including Company, Name, Email and Phone number. Name:______Company:______Email:______Phone:______
You have now completed the questionnaire! Thank you for your time 53 Please return your response to Lucille at the VTA by:
FAX 03 9645 3598 EMAIL [email protected] POST PO Box 5, South Melbourne, 3205 For survey results and any further information on the Truck Optimisation Plan for the Port of Melbourne/Dynon Precinct please visit the VFLC website on: www.vflc.com.au APPENDIX B Transport Company Case Studies
Executive Summary
Demographics All companies involved were open and generous in their preparedness to share information. All Four transport companies were included in were experiencing strong growth in demand the case study exercise, with key company typical of the sector as a whole. representatives interviewed during late October 2007. Key findings The four case study participants provide a diverse mix of business type, size and location, Investment all with a strong predominance of container All four companies have been investing heavily movement within their business profile. The four in new equipment and coincidentally all had case study companies have in excess of 75% of prime movers or trailers on order at the time their business involved with the movement of of the case studies. The significant level of products in an out of the Port-Dynon Precinct. investment being made is driven by the needs of the businesses to match or stay ahead of They therefore have extensive direct experience growth, to find more efficient ways to move with issues impacting on the efficient running containers, to reduce the running costs of their of their businesses and in interacting with truck fleets and to continue to modernise their the various parts of the supply chain required equipment. to move product in an out of the Port of Melbourne. Return on investment is generally considered in the medium term, with the four companies • Included in the case studies were: anticipating pay back periods of between three 54 • large and medium sized operators; and five years.
• import and export containerised product Consensus Improvement movers; Opportunities • some involvement with clearing empty Although it would be reasonable to expect that containers to and from empty container individual companies would have individual parks; and biases borne out of their own experiences and/or difficulties, the case study exercise • companies that are operating from a has identified a number of issues that diverse range of distances from the Port of were common amongst all four case study Melbourne including one within the precinct, subjects and therefore suggest that issues one within 10 km, one located in an outer are opportunities that provide the potential for Melbourne suburb and a country carrier improvement, if they can be addressed and located some 1 1/2 hours from Melbourne. rectified. As in any industry, sensitivity exists in relation Common concerns / requirements include; to “commercial in confidence” information. Accordingly a critical component of the process • Improved communications, particularly was to maintain the confidentiality of the from the shipping lines and stevedores, in companies that were kind enough to participate areas such as time slot availability, delays, in the process and therefore they have not been demurrage charges; identified, but have been rather referred to as transport companies A, B, C or D. • Longer empty container park operating • A more flexible operating environment at the hours, rationalisation of empty container DP World terminal. parks (which would ideally be located at the Port of Melbourne) and container parks that • A more cooperative industry approach to can handle the full variety of container types educate customers about the realities of and service all shipping lines; the difficulties that the transport industry faces, aimed at improving the perception of • A new industry-wide program to attract the value of the service being provided, and and support the development of young and/ ultimately helping to increase prices to a level or female truck drivers, to address severe that reflects the true value of the service. current shortfalls in the availability of licensed drivers; Conclusion • Improved / earlier access to time slot The transport operator case study exercise availability and better matching of import and has highlighted the increasing complexity and export timeslots at the wharf; demands placed on running trucks in and out of the Port ofMelbourne/Dynon precinct. The • Speedier access to Maritime Security Identity case studies indicate well run businesses are Card (MSIC), plus alternatives to what is continuing to grow and flourish, while needing in reality a single supplier arrangement to be at the forefront of improvement within currently in place; their part of the transport industry. • Quicker processing and turn around of The studies support the value of building strong trucks at the terminals, possibly through the and mutually beneficial relationships with both introduction of improved technology; clients and other suppliers within the supply chain. Companies that have developed an • Increasing use of technology to improve understanding with their clients can generally paper flows and communication; and command a premium or at the least place • A better coordinated and less bureaucratic restrictions on what work they are prepared approach to compliance by regulators. to take on, ensuring they are working towards productive operations to meet both their needs. Other significant improvement The level of re-investment is surprisingly high. opportunities It is seen as an imperative for businesses that 55 wish to continue to grow. Comments made by The process also identified other issues which the participants suggested that investment is although not of concern to all the companies, do expected to continue for the foreseeable future show potential for improvement. Those of note preferably in more innovative, productive and include: efficient vehicle combinations. • Different configurations of equipment Opportunities exist in a range of areas to that would improve transport efficiencies. make significant improvement in the running Although each operator had quite different of transport operations, in optimising truck ideas, possibly coming out of their own movements and ultimately making for needs, this is clearly an area with significant more efficient practices. A number of the potential for improvement. Suggested ideas opportunities identified require a wider industry include: approach, being predominantly out of the −− The introduction of road trains; control of individual companies. −− Permission to use 30 metre articulated Accordingly, the case study companies are trailers capable of carrying two 40 hopeful that the Truck Optimisation Plan will foot containers – the high efficiency be the start of a cooperative industry approach container transporters (HECTs); to implementing long term fixes to the key −− Permission to use performance-based issues that are restricting efforts to implement standard (PBS) compliant vehicles; significant improvement. −− The extension of the network of roads authorised for B double and super B Robert Alfarano Silent Partner Consulting double transport. 23rd November 2007 Case Study A The overall focus of investment has been in purchasing heavy articulated semi and B Double trailers, which are viewed as the optimum all Company details purpose vehicle at this stage. The company has This case study participant is a sizeable chosen not to move to Super B doubles at this transport company located in outer Melbourne. stage, as running costs, the lack of availability 80% of its work involves the movement of of experienced / qualified drivers and the sizes containerised product in and out of the Port of required loads are all viewed as issues that of Melbourne. Of this some 70% of containers would reduce flexibility and the viability of such moved are of imported products and therefore vehicles. It was however suggested that moving 30% involve handling export containers. The to HECTs would be a much better option for remaining 20% of their overall business is them, if legislation and physical infrastructure involved in local deliveries and associated would allow such vehicles to be used. support services. And how does the way your Financial investments customers behave affect your business? The company has invested heavily in recent times with some 95% of the last two year’s Most customers provide sufficient forward annual profit reinvested in equipment. The planning to allow Transport Company A to rationale for such a high level of investment is: plan its business correctly and to run an overall efficient operation. As planning is a 1. To ensure that the required operational critical component to both efficiencies and resources are available to support the truck optimisation, Transport Company A’s continuing rapid growth being experienced management and staff work hard to develop in the business; strong relationships with customers, where 2. A strong belief that the growth will they understand each other’s needs and continue; work cooperatively to achieve efficiencies. 3. To ensure the supply of quality service to The greatest improvements are not via the customers by having the most efficient / customer, but rather through advice about modern equipment possible; and receipt of all documentation from the port 56 terminal prior to vessel arrival. 4. Fleet conformity to ensure uniformity of prime movers, which allows optimisation Transport Company A has implemented a of expensive support resources, including specific strategy for the type of customer that it spare parts and inter-changeability of seeks. The company has been targeting service- trained drivers on this equipment. driven customers who value service rather than just price and whose business ethos is aligned Additional equipment is also critical to the with their own. business, as recent successes will test their ability to cope with the large degree of growth It has also focused on customers whose being experienced. The key assumption made premises are located within easy distance of the in investing so heavily is that the company will company depot, a strategy which on the surface continue to secure new business, generating appears to have limiting factors for the growth scale economies from new customers. Larger of business, however has and continues to be volumes will allow the business to recoup its extremely successful. investment within a period of three to four years. Importantly, such strategies have not hampered the company’s development and it has continued to grow to the point where it is quickly outgrowing the existing site. Company owners will need to consider this issue in the not too distant future. Regular communication with customers and a How does the stevedoring clear strategy of dealing directly with customers operation affect your business? rather than via brokers is a key component of building strong relationships with customers. Transport Company A noted that the operation On the value of the service provided by Transport at the port terminals is a key influence on the Company A, (as assessed by its customers), the efficiency of the business. In particular, slow company indicated that most clients recognise turnaround times at the wharf are an area of the value of the service provided, a result of the concern that needs to be significantly improved hard work to reinforce the value of the brand (particularly during the day shift). A number of and the company’s position in the market. trucks are despatched late in the day in order to Consistent, on time deliveries have contributed try to avoid both traffic congestion leading to the to good standing with the target customers. port precinct and slow turnaround times during peak periods, however this is a “work around” “Generally the more switched on and rather than a long term solution. better run customers are prepared to In other areas, to a large degree there is enough pay some of the extra costs created by flexibility in the way the stevedores work to allow the company to meet its customer’s needs. the current system within the supply Targeting improvement opportunities, it was chain, however in most cases the suggested that a greater number of timeslots transport company wears the brunt of would significantly improve efficiencies. inefficiencies in the system.” Concerns about timeslots not being honoured were raised. There is a lack of balance (or Transport Company A indicated that both its fairness) in that transport companies are services and prices are generally comparable to charged for missing timeslots, however they key competitors, therefore relationships and the are not afforded the same courtesy when the quality of service is what has set the company stevedores hold them up (which happens apart and has allowed the business to grow. regularly and creates a “domino” affect for a period of time). Does the flow of paperwork As expected, Transport Company A has impact on your business? implemented a range of operational “workarounds” to compensate for the 57 The paperwork flow from the customers is restrictions imposed by the way stevedores not viewed as an issue, however paperwork operate, however such workarounds do create flows from the wharf is a clear opportunity for increased running costs which cannot always improvement. Late documents received on be passed on to the customer. The success of the day of container clearance from the wharf Transport Company A in dealing with stevedores create a restraint that needs to be addressed. is generally attributed to strong working Transport Company A also sees the lack of relationships developed between the company industry standardised templates, (eg: pre- and the stevedore company staff. receival advice) as also being the area that could At the moment, the company estimates that be significantly improved to help efficiency. 70% of its truck movements in an out of the In order to improve paper workflows and to precinct have loads in both directions, with the reduce bottlenecks, it is also suggested that greatest restriction to improving this ratio being speedy transition to electronic delivery orders put down to not being able to de-hire empty (EDOs) would be a significant improvement. containers with the shipping lines directly at Another initiative would be for the customer the wharf. Transport Company A sees this to widen the very narrow delivery windows to as a significant opportunity to optimise truck provide greater flexibility. utilisation, if such a service were offered. Does your planning process While a cost estimate of not being able to allow you to incorporate all de-hire empty containers in the most efficient way has not been made by the company, it business needs into your daily would be an interesting exercise for the industry activities? to understand the true impact of the current container yard structure. Generally the planning process from customer to wharf is effective, with the greatest restriction Transport Company A also expressed concern being viewed as the limited operating hours of about shipping lines taking too long to pass empty container parks. on demurrage charges, which can take as much as 90 days. With consideration of current How do empty container technology, it should be possible to receive early park operations affect your advice and to therefore quickly investigate the situation and to return the container. Shipping business? line demurrage charges can sometimes exceed the value of the container. Operating hours and turnaround times are seen as significant impediments, with current arrangements estimated to meet the needs of Does your customer base the company only 50% of the time. Transport and product type restrict Company A suggested that extending operating your ability to improve your hours and significantly improving turnaround efficiency? times should be a key target for the transport industry, if better truck utilisation is to be The increase of imported products arriving in achieved. 40 foot containers has impacted on both the Although empty container yards operating speed of wharf clearances and the ability to 24 hours and 7 days per week is viewed de-hire empty containers. Transport Company as generally unnecessary at the moment, A believes that the use of 40 foot containers will increasing running hours until 22.00 or 23.00 continue to grow and that both infrastructure each weekday and at least Saturday morning and empty container yards need to adapt to would be desirable. Ideally, the company sees cope with the change in box types. that empty container parks should operate for In relation to opportunities to form alliances 58 the same hours as the wharf. with other operators that would allow resource Other closing time issues include empty sharing and therefore improve truck utilisation, container parks closing too early on the day Transport Company A does not currently use before public holidays, and in particular long any such alliances. holidays like Christmas and Easter, when Although not against cooperative arrangements, transport companies are pushing to meet there are concerns about protecting business commitments, while empty container yards and the company would only consider close early to start their break. “At the very least, developing such an alliance if it was with a advance notice should be provided to companies, company that was not a direct competitor. in such instances”. The company suggested that empty container yards locating in the inner West of Melbourne has been an issue, restricting the efficiencies of businesses located on the eastern and south-eastern suburbs. An empty container park capable of handling work for all shipping companies located in the south eastern suburbs would be a significant improvement for transport companies operating on that side of Melbourne, where significant growth is occurring. What effects are government People-Related Issues regulations / compliance Contract drivers are used predominantly to help demands having on your meet seasonal volumes. The costs of hiring business? contract drivers is higher however desirable versus employing additional drivers who may Most aspects of legislation are not viewed be underutilised during lower volume periods. as significant restrictive factors, but rather Access to contract drivers is dependant on as a normal part of doing business. The key being able to provide them with ongoing work, restriction coming out of legislative changes which to some extent negates the benefit of has been the introduction of the MSIC passes such arrangements. and the difficulty finding sufficient numbers of drivers with passes, has placed on their Transport Company A views the low availability business. The greatest issue around the MSIC of qualified drivers, particularly those with MSIC passes is the long timeline required for drivers passes, as a difficult issue that the industry to obtain the card, with three month waiting needs to address. The company has approached time considered to be excessive. The business driver training companies and consider newly has implemented workarounds, such as qualified drivers when employing. It encourages swapping drivers near the precinct; however the use of informal employee networks in order this is viewed as a short-term fix and a clear to identify potential driver candidates. reduction in efficiency. The increasing average age of the workforce Overall, the company supports the introduction is viewed as a significant problem, with drivers of the MSIC passes, however suggests either slowing down and therefore not as that significant improvements are needed. interested in working long hours, or retiring. Suggestions include: The lack of ability of the industry to attract young people, be it to driving positions, as yard 1. The lead time to obtaining a pass to be hands or in administration, is viewed as a key significantly improved; challenge for this company and the transport 2. Temporary passes to be issued to new industry as a whole. It requires a larger than drivers until the full assessment is made; company by company approach. A government subsidised scheme and a significant advertising 3. Only restricted wharf areas to require an campaign were suggested as a possible way to MSIC card rather than the wider precinct. 59 address this issue. What “workarounds” are used In the short term, the company continues to to help your business cope work hard on retaining its experienced drivers. It offers incentives and even profit share with the existing structural arrangements to support wage levels which are inefficiencies within the supply not overly attractive, considering the demanding chain? role and the current labour market.
Personal relationships are viewed as a critical The remaining concern is that some drivers component in navigating inefficiencies and are being asked to work long hours to both are typically used to help to obtain additional allow the company to meet commitments. If timeslots when the business requires. Day- a driver leaves or heavy customer demand is to-day operations do not rely on personal experienced, further pressure is placed on the relationships however urgent orders or specific current drivers. Reduced access to experienced information requirements do often require the drivers and impending anti-fatigue legislation “calling in of favours” if deadlines are to be met. will add further pressure on an already scarce resource. The critical part that experienced staff play in achieving operational objectives does mean that if staff were to leave or retire, the effects on the business could be dramatic. This is certainly viewed as an area of concern and a point of vulnerability to the business. What other issues are Case Study B impacting your business?
Competitor pricing and therefore squeezed Company details margins are viewed as a significant factor that This case study participant is a sizeable necessitates lean company structures to be run. transport company located near the Port of Customer pricing is often forced down by some Melbourne / Dynon precinct. Most of the work is companies who can not sell the true worth of in the movement of the containerised products, the services they provide and by new or smaller hence the location within easy proximity of the entries to the market who try to buy a share, or Port of Melbourne. cut corners to reduce their operating costs. Of the containerised product moving in and Transport Company A suggests that the industry out of the port precinct, Transport Company B (led by the bigger players) should be increasing does not have a balanced task as some 80% customer prices to a level that better reflects of the movements are of imported products. the complexity, costs and true value of the Other services offered include general transport service being provided, however understands deliveries, linehaul interstate transport and that this will be driven by market forces. general warehousing services.
Summary Financial investments
Overall Transport Company A presents as a The company has made significant investment well run and forward thinking business that is in equipment over recent years, with an flourishing regardless of a complex end difficult emphasis placed on gradually improving and supply chain. A blend of clever marketplace modernising the truck fleet. Transport Company strategies, strong investment in efficient B suggested that investment is an imperative, equipment and use of informal networks has rather than a choice within their discretion. The enabled this company to continue its success. comment “improve and grow or die” was offered Key issues that would significantly assist to as a concise explanation of the company’s improve efficiencies / business include: philosophy. Although a small amount of the need to • Better turnaround times at the wharf; 60 invest in new equipment has been driven by • Extended operating hours for the empty government regulations, the longer term reality container yards; is that the truck fleet is ageing and needs to be supplemented with reliable, efficient and lower • Standardised industry-wide templates; operating cost units. • Improved communications particularly Regardless of the pace of return on investment, from the shipping lines and stevedores, in the company feels that it has little choice areas such as time slot availability, delays, but to continue to invest at a controlled and demurrage charges, etc; sustainable pace, for the foreseeable future. To some extent, it does appear that their own • Improved availability of experienced and success is also a significant contributing factor, qualified drivers; as more business and greater workloads • Easier access to MSIC passes; on existing assets must also necessitate continuous improvement and investment. • The transport industry increasing charges to better reflect the true value of the service being provided. And how does the way your Does the flow of paperwork customers behave affect your impact on your business? business? The flow of paperwork is generally acceptable Transport Company B enjoys a close working however does present opportunities for relationship with customers and tailors improvements. In the long term the paper flow operations closely to requirements. Generally within the communication process between and within reason the company is prepared to the wharf and the transport companies should do whatever it takes to meet customer’s needs. be heading towards paperless as much as Double handling of containers is undertaken if possible. The opportunity to use current required to achieve the desired result. electronic technology, to quicken up the transfer of documentation and improve access to The company believes that there is a strong information should be exploited. level of mutual respect and that both parties are quite prepared to be flexible and to work with each other to achieve a common goal. How does the stevedoring operation affect your business? Overall Transport Company B does believe that most customers can appreciate the quality of No commercial relationship exists with the service and the efforts made to meet deadlines. stevedore. Transport Company B suggests To this end the company does try to pass on it is forced to follow whatever processes the cost increases wherever practical, where stevedores feel is in its own best interest. cost increases are easily understood (such as The company indicated that the stevedoring movements in fuel pricing). Other charges, such companies are reasonable to deal with as as the cost of double handling and demurrage, both their goals and the goals of the transport are much more difficult to explain and pass on. companies are reasonably well aligned (in that Accordingly it is rare that such charges would they both want to get the containers through the be levied against a customer. They are viewed as terminals as quickly as possible). an unavoidable cost of doing business. Penalties for trucks arriving late or missing Transport Company B does target customers timeslots is one area of concern in that the cost who hold quality service as a key motivating is generally difficult to pass on to customers. factor in their buying decision, and are therefore The question of equity was also raised and if 61 reasonably well organised and planned in their the wharf has a bad night and holds up the own processors and operating structures. The transport companies during the next day “that’s cost of doing business with such customers is just bad luck” however if something goes much lower as unnecessary and unproductive wrong in the supply chain or with the transport communication processes and reactionary company, it is penalised by the stevedore. behaviour to meet ever changing customer needs are generally reduced. Does your planning process Concern was shown about some of the smaller allow you to incorporate all so called “cowboys” at the margins of the business needs into your daily industry may flout regulations to achieve lower activities? operating costs. These operators are cutting prices and as all transport companies are Planning processes, be they from the customer fighting for every dollar, they are a distraction in to Transport Company B or through to the the marketplace. Although Transport Company stevedores is reasonably efficient as it currently B maintained strong working relationships stands. Access to booking delivery slots and with their clients and rarely lose any to such matching import and export slots are key areas operators, they are a reality that the company that could be improved. Transport Company B confronts every day. believes that the current system is slow and inefficient with operational controller spending long hours on what should be a simple process. How do empty container The ideal scenario would be for empty park operations affect your containers to be de-hired at the same place as they are picked up, which would mean container business? parks located at the Port of Melbourne. It does The limited operating hours of empty container appear on the surface that this is an improbable parks are viewed as a significant problem solution as insufficient land is available for area that needs to be addressed if significant container parks and the expenditure developing improvements in inefficiencies and costs are to such yards not justifiable from the shipping be achieved. As the cost of such inefficiencies company’s point of view. are borne by the transport companies and not by the shipping lines, there appears to be Does your customer base little incentive for the shipping lines to provide and product type restrict enough money to allow empty container parks your ability to improve your to be open for longer than basic hours. Limited efficiency? operating hours of empty container parks and the hours not matching the operational needs of Overall it does appear that the customer and transport companies creates significant double product base is diverse enough to permit a handling of the empty containers that cannot be reasonable spread of efficient loads and for the de-hired at a convenient time of day and when efficient use of transport resources. trucks are already in the area. Imbalance of import and export containers It is a regular occurrence that empty containers moving in and out of the port precinct at the need to be returned to the company’s depot, same time is viewed as an inherent part of taken off trucks and stacked overnight before the industry, and although opportunities exist being re-loaded and de-hired the following for improvement, having a 50 / 50 balance is morning. Not only does the double handling considered idealistic and impractical under the create increased labour, fuel and truck current system. The difficulty in matching slots, operating costs, it also occupies trucks which the need to go to different parts of the precinct could be used to make deliveries, thus diverting for export drop of and import pick up, and the valuable resources. locations and availability of empty container Further complications are created by each yards, all make achieving a balance unrealistic. 62 shipping company having their own container park, as is the fact that not all container parks What effects are government can handle all types of containers. Both these regulations / compliance issues lead to delays and inefficiencies and demands having on your regular occurrences of trucks having to de-hire containers from the same load at two different business? container parks. Overall Transport Company B does not have a The current opening times of mostly 7.00 major problem with government regulations a.m. until 4.30 p.m. is clearly insufficient, and however does believe that processes are often substantially longer operating hours would slow and bureaucratic. be a distinct advantage. Opening 24 hours A key area of concern is in the slowness of per day has been trialled, however was short access to MSIC cards which normally take about lived and was considered to be unsuccessful three months to obtain. Clearly, restricting by the container parks. Transport Company the number of drivers with MSIC cards B suggested that transport companies were creates inefficiencies and limits the number not made aware of the extended hours and of trucks able to move in and out of the port therefore did not support the facility. precinct. Overall, the company believes that the regulations themselves are acceptable, but the process for obtaining licences is bureaucratic and may be under-resourced. Processing applications needs to be significantly improved. Although the various government departments People-Related Issues dealing with the transport industry aim to assist and improve the industry, often the The availability of people, skills and licences is solutions are problematic. Bureaucrats can a clear problem for the industry and one that is lack a full understanding of the realities of continuing to worsen. The problem is quite large the industry, therefore some decisions lack for companies wanting to hire experienced truck foresight. Often Government decision makers drivers, as the demographics show that most do not see the downstream issues created by drivers in the industry are over 40 years of age, the proposed solution, as they tend to assess therefore the pool of available talent is being the situation from the perspective of their reduced by departures and retirements, without own department’s limited interest rather than being supplemented by new entrants. looking at the complete picture. Examples were The industry does not appear to be attracting cited in relation to vehicle mass limit regulation, young people who do not want to drive trucks infrastructure development and rail freight and see the work as low skilled and low value. access regulation. In some countries truck drivers appear to be A coordinated approach between the various valued much higher than they are here, with government departments that impact the both the perception of the general population transport industry would be a welcome being higher and the wage rates being more improvement, as would a change of culture to attractive. As such, countries like the US do work with and support the industry rather than a better job of understanding the true worth taking a punitive approach. of people working in such roles. The general population does not appear to understand What “workarounds” are used that driving is difficult work which requires to help your business cope significant skills to drive large and sometimes complex vehicles, to navigate increasingly more with the existing structural difficult and congested suburban streets, and inefficiencies within the supply the dedication required to work the long hours chain? expected.
The key workaround used both within Transport Company B suggested a significant change Company B and generally within the transport in approach is required across the transport industry, is the ongoing use of a personal industry, ideally with a recognised training 63 relationships and personal networks in order structure or traineeship to replace the current to efficiently navigate the supply chain to meet certificates 1, 2 and 3 in Warehousing and required deadlines. As many of the key players Distribution, which does not meet the needs of in the industry are ageing and are likely to developing truck drivers. retire within the next 10 years, it is suggested that a common knowledge management system be developed to capture networks and relationships. Such a system would allow new entrants and inexperienced people to understand how information flows work, who to talk to and the various and complex relationship structures in the industry, thus making their integration simpler and quicker. Other suggestions are: Case Study C 1. An incentive scheme to support loyalty and retain drivers within the industry; Company details 2. A better and quicker training structure Transport Company C is a mid-sized operator that allows “heavy rigid” drivers to move to located within 10 km of the Port of Melbourne articulated vehicles far quicker than one precinct. The business is involved with the year (based on competence and ability, movement of containers and containerised rather than the expiration of time); one products to and from the Port of Melbourne and year in each step towards a heavy rigid and around metropolitan Melbourne. articulated licence. Recent years have seen the business grow 3. Government subsidies for insurance when substantially, most notably by one third last companies hire young people as the current financial year. Growth however has somewhat costs are prohibitive and constraining “plateaued” over the last 12 months, with the companies from recruiting the few young business attributing vehicle / driver availability people that are interested. as a key constraint to growth.
Summary Financial investments Transport Company B presents as a practical The business has recently taken a decision to and solid operation, that is well run and growing make a large investment in purchasing new steadily. It appears to work efficiently and trucks to add to its fleet and has a number has good working relationships with all key of additional vehicles on current order. The stakeholders, not just clients. Overall it appears investment will increase the fleet by some 35% to comfortably work around inefficiencies in and is extremely significant for a business of the supply chain. Significant improvement this size. The key rationale for the decision is opportunities were identified in the following both to support continuing and future growth, areas: and to reduce reliance on sub-contracted • Increasing use of technology to improve drivers. paper flows and communication; Most of the company’s transport is provided by sub contracted drivers, who provided flexibility 64 • Improve access and matching of wharf during the company’s early years. Although timeslots; the cost of contract drivers was variable, flexed • Longer running hours and rationalisation of with workloads and worked extremely well, the empty container parks, which would ideally business now sees that significant grow has be located at the Port of Melbourne; meant consistent workloads, and therefore the costs of contract drivers is now higher than • Speedier access to MSIC cards; would be the case with company employed • A better coordinated and less bureaucratic people. Transport Company C is also attempting approach by government departments; to reduce the influence that sub contractors have on its fleet. The company has found that • A new industry-wide training and support increasingly sub-contractors are less available system to attract and support the and flexible, as the general availability of work development of young truck drivers. with other companies has increased. The question of loyalty to Transport Companies C has also been of some concern, as some contractors will often take opportunistic loads for other companies and will not be available when required. The business believes that through injecting some of their own trucks and While larger clients prefer to deal with drivers the higher level of resources will help to respected organisations with solid reputations, support uneven workloads across the days of price is attractive to a significant portion of the each week. customer base. Such a significant investment will have a large impact on the bottom line, and it is expected Does the flow of paperwork that it will take some four to five years to recover impact on your business? costs. The business does however believe that making such a decision is crucial to its future. The flow of paperwork is considered to be of major importance to Transport Company C, who prides itself on being very careful with And how does the way your paperwork. Internally paper processing is time customers behave affect your consuming and occupies a significant part of business? the administration department’s work time, however is a necessary part of doing business. Customer behaviour is a major impact on this business, with the ability of customers As Transport Company C is responsible for to forward plan variable. The situation was losses, delays and damage to containers, a described as following the classic 80/20 rule, very detailed paper flow is maintained. Some with most parts of the supply chain being customers and depots are better than others capable of planning and providing Transport to deal with in relation to the quality and Companies C with adequate notice to allow consistency of paperwork. Overall the belief is supply of the level of service required by the that the bigger companies are better resourced client. The remaining 20% generally have poor and therefore generally provide more reliable business behaviours and practices. and consistent paperwork than the smaller companies. Transport Companies C believes that the situation with customers that have difficulty As wharf access is of key importance to with planning has been getting slightly worse Transport Company C, paper work processing over recent times, which may be a reflection associated with wharf operation is a key target of a buoyant economy and busy workplaces. area of improvement. Improvement could be Transport Company C employs the attitude of made by replacing current hardcopy paper flows just “grin and bear it”. with electronic interfaces. The process currently 65 in place for full (FCL) containers, using a Pre- The strategy has been to try to educate Receival Advice (PRA) should be introduced customers to plan better by showing them the to empty deliveries as well. In order for this implications of their poor planning, however process to take place the empty container parks some are “just plain disorganised” and have no should have an interface or link with the wharf incentive to change when transport companies computer systems. i.e. When trucks leave an can “move heaven and earth to allow them to empty container park & are booked out, the port meet their deadlines”. Growth having been so terminal system should receive an update with significant over recent years, the company is details of the delivery. now in a position where it can sustain the loss of less organised customers. Then, when the truck enters into the port precinct, the transponders could trigger an A few customers value the quality of the service Electronic Data Interface (EDI) which would that is being provided and are prepared to pay print out the required paperwork, thus a little extra to access such a service. Many buy significantly reducing the impact of drivers on price alone, and are only interested in moving being held up waiting. Such a process could boxes between points A and B. Competition replace the Export Receival Advice (ERA) and through new entrants undercutting price and make the whole paper flow much simpler. compliance threaten the company’s niche in the market. How does the stevedoring Transport Company C did go on to state that operation affect your business? current arrangements with the two stevedoring companies is significantly better than the bad Transport Company C is extremely reliant old days where trucks used to do two trips to on the stevedores and is forced to plan their or from the wharf in a whole dayshift, however own requirements around the needs of the there remains plenty of room for further stevedores. If the stevedores change their plans improvements. at the last minute, it has a huge impact on Transport Company C’s daily activities. Does your planning process The company expressed the view that planning allow you to incorporate all of the stevedoring companies should be business needs into your daily better balanced and include the needs of the activities? transport companies, if truck optimisation is to be achieved. Currently, this balance appears in Transport Company C has no particular favour of the terminal’s efficiency rather than problems with the planning process, as the whole task. notification to pick up containers is usually available in sufficient time. Late notice is of For instance, the terminal changes bookings greatest concern. of bulk empty movements at the last minute to accommodate ships running behind schedule, or if there is a shortage of space in How do empty container the terminal. This creates havoc for the land park operations affect your transport carriers who have planned equipment business? and booked contractors specifically for a bulk movement. Transport Company C is concerned about turnaround times of trucks visiting empty Typically, the following sequence of events container parks. Limited space at container would transpire. Transport Company C yards may be a limiting factor as a number schedules weekend work with the terminals, reach capacity. with a busy Saturday and Sunday planned. The trucks and drivers are organised for the It was suggested that each empty container weekend. Late on the Friday, they are contacted park needs to have a specific arrangement for 66 by the terminal to inform them that there is no bulk pick ups or deliveries of empty containers, space for the booked containers as the vessel in order to isolate bulk run movements from the is behind schedule and the booking will now be general traffic of de-hires & release pick ups. shifted to the Sunday only. Such an arrangement would allow de-hiring empty containers or picking up containers for As a result, it is impossible for Transport export to be processed much faster. Empty bulk Company C to provide sufficient trucks and runs must be supported by sufficient resources drivers available for the Sunday in question, and a significant increase in efficiency of the as most sub contractors were already empty container park operations. committed to other clients. Further, the company would have to break regulations by Transport Company C appreciates that running extraordinarily long shifts of around container parks are funded by the rates 15 hours per driver to complete the deliveries. paid by shipping companies and that these Unprepared to break occupational health and shipping companies will not necessarily see safety rules, the carrier managed with the a benefit in increasing funding to allow more resources at hand and did not complete the job. resources to be engaged. This does appear to be a key issue as the Company believes that The short shipped containers cost the shipping insufficient resources are provided to enable the lines in unutilised time slots. The core of the empty container parks to provide a full range problem appears to be limited space at the of services. Insufficient forklifts, equipment wharf. Whilst it is understandable that ships do breakdown due to ageing machinery, or a low run behind schedule, it is the carriers that bear number of available staff can delay trucks. the brunt of such situations. Such events are not isolated incidents. Shipping lines may need to be provided with an Transport Company C is concerned about the incentive to match the empty container park’s slowness of the process and that in practice, needs and those of their customers in the there is only one provider (One Stop). If a driver transport industry, or some alternative source was to obtain an MSIC card through anyone of funding to sustain parks needs to be found. else, s/he would have to use One Stop for an access card to enter the terminals. Effectively, Does your customer base One Stop is the only option. As contract drivers and product type restrict dominate the Company’s supply, MSIC cards haven’t been a major problem. However, as your ability to improve your soon as the Company takes receipt of the efficiency? additional trucks on order and begins recruiting the necessary drivers, the slowness of the Transport Company C is limited in its flexibility, process will become an issue. Alternative and would generally not be able to pick up providers to share the work load are viewed as containers for anyone else. The nature of the an imperative. task does not allow a load in each direction most of the time. What “workarounds” are used There are ad hoc arrangements with other to help your business cope carriers where they assist each other if they have a truck in the area; however this scenario with the existing structural does not happen often. inefficiencies within the supply chain? What effects are government Transport Company C’s relationship with others regulations / compliance in the supply chain, (eg: empty container parks demands having on your and stevedores) generally work well, with little business? need for workarounds.
There are a range of issues being created by Personal relationships between staff and those government regulations, which are making of the empty container parks and stevedores are running the business increasingly complex. generally quite good. They form an important role in ensuring the smooth operation of the ACCC requirements are taken very seriously, business. This is not considered to be any more 67 and although Transport Company C has not onerous than in any other business, and is not experienced any problems, it is careful about viewed as an issue of concern. how networking is done, as the company is keen to explore cooperative working relationships People-related issues with competitors, which could be misconstrued to be collusion. The greatest issue regarding people continues The concept of the MSIC cards is not a problem; to be the low availability of experienced and however the Company is concerned about the licensed drivers. The recent decision to reduce delays in obtaining cards for new drivers. On the reliance on sub-contractors and to therefore positive side, the Company used to police check employ more drivers directly, may be tested if new drivers, where as it is now able to rely on the drivers cannot be found. the checks done as part of the MSIC process, Transport Company C has previously had which is a benefit. recruitment advertisements running for up to three months at a time, without being able to recruit acceptable drivers. The company is interested in finding more creative ways for the industry to attract and retain drivers, and would welcome a coordinated approach for the industry from government and / or an industry body. The Company suggested that the classification Summary of HC drivers as a “skilled labour” category will assist companies recruit drivers from overseas Transport Company C appears to be an efficient if they cannot source them here in Australia. and fast growing business that provides an Such an arrangement may help address the important service to the industry. Management shortfall and the quality of existing staffing. understands the industry well, has strong strategies in place to grow the business and is As the pattern of the workload is dictated by investing strongly in the future. the Stevedores, the Company is also concerned about the constant pressure for drivers to work As a smaller player, Transport Company C long shifts, by compressing requirements indicated its influence is somewhat limited. into a short period of time. Currently, Monday It will rely on the industry, led by the major and Tuesday are generally quiet however the companies, government and industry bodies to business is very busy from Wednesday to address some of the fundamental inefficiency Sunday. A more consistent and even workload problems, which include: would be much better, as having additional • A more cooperative industry approach to trucks and drivers sitting idle for two days isn’t educate customers about the realities of the viable, as is asking drivers to work unreasonably difficulties that the transport industry faces, long working hours during the other four days. aimed at improving the perception of the This is dangerous and not something that value of the service being provided. There is Transport Company C is comfortable doing. a need to complement this with identification Occupational health and safety regulations and elimination of operators who work and the impending fatigue management rules outside the law and drive down prices; create reasonable restrictions for the welfare of the drivers. These will, however, make meeting • Quicker processing and turn around of the requirements of the terminal operators trucks at the port terminals, through the more difficult. Efforts to change work pattern introduction of improved technology and continue, however limited space on the wharf improved efficiency of processing staff; for empty containers, may limit the ability of the • Early notice of problems at the terminals that stevedores to evenly spread requirements, as have an impact on transport operations; volumes of full containers and ship movements 68 restrict requirements for empty containers. • Increased funding of empty container parks by shipping lines to allow additional resources to be engaged, to improve turn around time and efficiency;
• Alternative suppliers of MSIC cards and precinct passes, ultimately aimed at significantly reducing processing times;
• An industry approach to attract and develop more truck drivers, by classifying HC licenses as a “skilled” category in order to source staff from overseas (if sufficient numbers are unavailable in Australia). Case Study D Transport Company D has for some years been lobbying government for the introduction of performance based standards (PBS) vehicles, Company details which would allow the load to be spread more Transport Company D is a mid-sized, privately evenly. An approval for the vehicle to operate owned operator located in rural Victoria. has been keenly awaited for some time. The Company is a general country carrier Needing to take a decision, the Company has supporting a provincial centre. recently determined to order the standard tri- axle trailers, at what is likely to be a higher cost Approximately 65% of the business is and lower productivity benefit. containerised product movements in an out of the Port of Melbourne, with the remaining 35% Investment is financed over a five-year period, of the business being spread across general with pay back also expected to be over the same freight and transport of agribusiness products, five-year period. Regardless of the length of most notably cartage of grain and hay. the period to recover the costs of investment, additional and more efficient equipment is a The business is currently running at some 70% basic necessity of the business, and is viewed as of capacity which is a little lower than previously, an ongoing requirement. due to the effect of the recent Australian drought and the high Australian dollar making And how does the way your exports uncompetitive. customers behave affect your Financial investments business? Customer behaviour is generally acceptable The business continues to invest heavily in and works in well with the needs of Transport prime movers and trailers, with a number of Company D’s business. This wasn’t always the additional trailers currently on order. There case and in the past there was a high incidence is however a significant waiting period and a of crisis management. This is generally no backlog of trailers to be manufactured which longer the case with 95% of orders being well is assumed to be a result of heavy demand and planned, with adequate notice provided. expected changes to government legislation during 2008. Demand is influenced by the new The change in attitude and operating methods emission standards, as companies purchase is generally attributed to the strong working 69 new fleet rather than undertaking costly relationships developed between Transport retrofitting. Company D and its customers. Over many years the Company has worked to help customers Transport Company D has been thinking broadly understand the realities of transporting about fleet upgrade. Like much of the industry, containers to the Port of Melbourne, and it is moving towards more B doubles, while ensuring deadlines are met. “We move heaven recognising an ongoing role for articulated and earth to get them out of trouble when they do trailers to handle single container loads. need it or have urgent orders to meet a vessel. The key issue remaining to be resolved is that They generally understand our needs and work as many containers are packed unevenly, with us in a cooperative way the rest of the time,” the total gross weight of the truck is often was offered as an explanation. acceptable however individual axle weights can be higher than permitted. As the Company is not permitted to break container seals and to repack the container, drivers are sometimes unknowingly in danger of being fined. The relationships that Transport Company How does the stevedoring D experiences with its customers have been operation affect your business? hard won developed over a long period of time and guarded carefully. The Company’s The two stevedoring companies are seen as reputation does allow it to set strong rules for extremely different in areas such as flexibility how it will operate, demanding behaviour that and customer service. supports both the business needs and those One is assessed as reasonably user-friendly and of the customers, such as full loads, and the a company that will do what they can to support passing on of any on-costs associated with poor the transport companies who are bringing customer behaviour (e.g. late fees from the containers into the Port of Melbourne. stevedores and demurrage fees.) As Transport Company D believes that it adds “They will generally make an effort to value to the customer’s business by the way catch up if they do get behind and are delivery requirements and the other services are met, this corner of the market isn’t prepared to take whatever action is generally overly price sensitive. Although ample necessary including taking straddles opposition exists, most customers understand off ships in an effort to return to that cheaper prices mean lower levels of service running on time.” and usually do not look elsewhere. Pricing methods has changed over time and Transport Another is viewed as less able to offer this Company D now bases its prices on weight flexibility. rather than volume, which appears to be a far better method than what was in place in the Transport Company D is concerned with the past. fees being charged for missing time slots and believes that the current booking system for the port terminals is restrictive and punitive. The Does the flow of paperwork impact is felt strongly by rural and interstate impact on your business? carriers. Paperwork is mostly efficient through the various parts of the supply chain that the “If a customer mucks up and doesn’t Company is in contact with, outside the have the containers ready for us to 70 increasing level of documentation being pick up as expected, the penalties can required by government legislation (discussed be quite significant, and we have had in more detail later). PRA’s do sometimes occasions that fines on a single order contain errors which are often linked to pricing, however this isn’t a major issue and the have approached $3000.” business survives comfortably with minimal administration staff. Transport Company D believes that not enough slots are provided for country carriers, that the process of booking slots is restrictive and time- consuming, and that an overall better system to support country carriers is required. Does your planning process Does your customer base allow you to incorporate all and product type restrict business needs into your daily your ability to improve your activities? efficiency?
Generally, the planning process is adequate Customer and product types vary, however farm however the greatest issue that Transport related customers / products form a significant Company D confronts is the availability of proportion of the products transported, timeslots. As previously mentioned, the current therefore create some unique problems. system is time-consuming, and doesn’t take Farm-related products can create an increased into account the difficulties confronting country level of urgency and pressure, as often freight and interstate carriers. Transport Company services are required at short notice as D suggested that load planning would be conditions are right for crops to be picked. The significantly improved if the slots were released increased pressure is however predominantly 24 hours earlier than they currently are. on the general freight area of the business, rather than export freight. Seasonal peaks do How do empty container divert truck and driver resources to handle the park operations affect your demand. business? What effects are government Restrictive empty container park operating regulations / compliance hours is viewed as one of the biggest demands having on your restrictions on Transport Company D’s business? business. Being a country carrier with greater potential for delays in getting to and through A range of issues exist with regulations, which Melbourne, de-hiring empty containers into have increasingly made running Transport a narrow time window makes running the Company D’s business more complicated. business significantly more complicated than it Although it is acknowledged that many of the should be. laws in place are for the overall benefit of the If Transport Company D is held up and misses industry, Transport Company D expressed closing time, bringing containers back to the concerns that the application of the laws has 71 depot, could involve as much as a six hour become increasingly bureaucratic rather than turn around. Obviously, the cost, disruption practical. Fewer enforcement officers with a and inefficiency involved can be significant. background in the industry tend to apply the Further, if the de-hire was planned to be part law to the letter, rather than to show some of the same trip as a pick up from the Port of understanding of what is practical for operators. Melbourne, the impact can be cumulative. An example is the weight of one axle being marginally higher, although the gross weight of Transport Company D said that Patrick’s empty the truck is acceptable. container park was open until 23.00 at one stage, which was significantly better, however “In the past they understood that we short lived. Although the reason for ceasing the service was not known, Transport Company D do not have any control over how the does understand that the shipping companies container is packed, so they would will not pay to have the service provided by point out their concerns and let us get empty container yards extended. An alternative on with it. Now they will fine us.” way to fund an extended service is seen as an imperative. Transport Company D expressed concern that People-Related Issues compliance and documentation requirements had become increasingly onerous. An example Finding and employing sufficiently qualified was given of a case where shock absorbers and experienced drivers is becoming extremely were replaced on a truck. An error had been difficult. Transport Company D finds itself in made, recording the replacement and the much the same situation as the balance of shock absorber number in the incorrect the industry and is finding it difficult to attract register. Although the Company could show the young people. If wishing to hire a young person, inspector the shock absorber that had been insurers require an unaffordable premium and removed from the truck, this was insufficient as excess allocation for driver aged under 25 years. the register was incomplete. Transport Company D did recently consider hiring a 21-year-old however was unable to Transport Company D explained that most obtain reasonable insurance cover and therefore vehicles are running at maximum capacity for decided not to go ahead. most of the day and there was little time to find for increasingly complex documentation It is clear to Transport Company D that the requirements, although effort was made to keep industry is not attracting young people or up with requirements. female drivers, and that the long hours and odd working times do not particularly make the role Some uncertainty also exists in relation attractive to people looking for some balance to proposed new legislation such as the with their non-working life. An average working fatigue management. Fatigue management day of 14 hours is considered quite common, requirements for a country carrier may make a and Transport Company D feels that people day of trips in an out of Melbourne increasingly with families generally find it difficult to move to difficult. The introduction of more restrictions such a demanding work pattern. A more mature may necessitate the provision of sleeping / stable person is required or a young person facilities close to the Port of Melbourne, in order without family responsibilities (whose family to prevent drivers from operating outside the comes after the work patterns are accepted as requirements of the new legislation. normal) is the only way to go. It was also suggested that AQIS tailgate An industry approach to attracting younger inspection hours may need to be extended people is urgently required as the more mature as they currently cease operating at 15.00. drivers are reducing steadily with many leaving 72 Alternatively, more inspection facilities may the industry complaining that the work and be required in the increasingly “24 hour a day associated compliance has become too difficult. business” that transport has become. The industry is losing experienced people in driving and administration. What “workarounds” are used to help your business cope Transport Company D indicated that obtaining an MSIC card is too slow, considering a process with the existing structural of drivers spending some hour and a half on inefficiencies within the supply the computer completing the induction and chain? then waiting anywhere between two and three months for the card and pass to come through. No special workarounds were nominated, other The slowness in obtaining the card is restricting than the use of networks and long-established the Company’s ability to have sufficient contacts. Using the networks to navigate the numbers of drivers able to access the port supply chain and in particular to push through terminals. urgent orders is a normal and long-standing way of doing business, and is not considered to The use of an MSIC driver located at the port be unusual. Transport Company D did concede terminals to swap with non-MSIC drivers for that many of the key people in the networks the terminal turnaround is being considered. are ageing and that future operating processes Clearly this is an inefficient use of resources will need to be more formal in order to allow and a last resort. There appears to be little businesses to meet their requirements. option in order to meet customer requirements at this stage. Summary
Transport Company D presents as a well- established and well run business that is flexible and quite forward thinking. It is based on an ethos of pragmatism and close alignment with customers. It has built what appears to be understanding and mutually beneficial working relationships with customers and therefore commands a position of respect and a price premium based on a sound track record. The company is articulating frustration with the increasingly onerous nature of compliance with regulations and the associated paperwork. The Company indicated that other players in the supply chain may not appreciate the increased difficulty experienced by country carriers. Key issues raised as concerns include:
• The inability to obtain permission to move to performance based vehicles;
• The inflexibility and therefore difficulty that they have working with one port terminal;
• The short supply of wharf timeslots, the time-consuming nature of bookings slots and planning improvements that would be experienced if slots were released 24 hours earlier;
• The need to increase the operating hours 73 of empty container parks to at least partly match the long operating hours of transport companies;
• The less practical way laws are now being applied, which tends to show a lack of understanding of the industry by enforcement agencies;
• The difficulty in recruiting new drivers, and that in particular the industry is finding it difficult to attract young people, and then finding that the attitude of the insurance companies makes employing them prohibitive;
• The drawn out process of obtaining MSIC cards not matching the needs of their business. , comments Further e x planation linked solutions Through existing VBS - automated function, without changing VBS - automated existing Through screens Would require training of customers and forwarders - and forwarders of customers training require Would prior 72 hrs to extend could Consider offer of 2 slots at night for every 1 peak slot booked. booked. 1 peak slot every at night for of 2 slots Consider offer 0500-0700. Link with 1.1 with more uptake Reward Already available to a limited degree - could encourage more encourage - could degree a limited to available Already ASAP parties of external the view a lack of clarity from remains There Terminal equiment dedicated to slots matched. Bulk empty empty Bulk matched. slots to dedicated equiment Terminal a as lines shipping with negotiated be to levels equipment run of uptake more encourage would This issue. resource separate night turnaround, a 30 minute guarantee to slots.Need evening than the day shift. is no better as at the moment turnaround A service agreement would establish a commercial a commercial establish would agreement A service and the carriers. operators the terminal between relationship Feasibilit y L,M,H H M H L H H H M P riorit y L, M, H H H H L H H H H
74 VBS Functionality than rather booked, when import slot slot of export Offer screens between move having to Bookings for imports extended to 48 hours prior 48 hours to imports extended Bookings for Slot matching offered to evening and night deliveries to to and night deliveries evening to offered matching Slot way loading of two chance improve Ability to swap an import for an export booking an export swap an import for Ability to Migration to one system asap one system to Migration 1Stop and VBS rules, terms and conditions to be clear, be clear, to and conditions terms and VBS rules, 1Stop "management" arbitrary from and removed unequivocal Port Terminal Operations Terminal Port and night evening for allocation resource Appropriate of trucks shift loading/unloading Service guarantees to customers and independent customers to guarantees Service monitoring 1.1 S olutions 1 1.2 1.3 1.4 1.5 2 2.1 2.2 APPEND I X c summar y workshop prec i nct TOP L = low M = medium H high L = low , comments Further e x planation linked solutions Available today. Needs to be marketed to country country to be marketed Needs to today. Available the may negate structures cost Commercial carriers. efficiently. benefits if the wharf is operating and their carriers for issue This is a comemrcial low. already are Rates customrs. As above needed. campaign A wide awareness of slot cost for a sliding scale to Should be matched and companies low are Rates bookings at the terminals. away more. give to afford can’t There is little trust between carriers. A key solution given mix solution given A key carriers. between trust is little There or import task. with dominant export of carriers Port parking issues. management. Difficulty in gate The information would need to be matched to slots booked. slots to be matched need to would The information and should be managed task This is part of the stevedoring not by the carriers within the terminal, Evening slots could be free. Booking an evening slot should slot Booking an evening be free. could slots Evening free. for slot an extra offer automatically Feasibilit y H L M H M M L M M M M P riorit y M L M H M M M M M M M
75 Carrier collaboration to carriers enable to of a sub-market Development depots and wharf - would between loadings match rules business proper require superpark priority to given Backloaders wharf supply hubs could and intermodal Major carriers only who would carriers, country for depot cartage to wharf the to trip the saving depot/hub, the access to need Cooperation Customer night deliveries for Reduction in rates evening/nights in receive will customers if fees via-yard Nil after deliveries on savings for of customers Education 10.00 14.00 or in mornings before time of pick up or delivery to related A sliding scale Formal notification from the operator re terminal delays re the operator from notification Formal as no fault be remitted to costs truck detention enable to of the carrier speed up matching zoning to stack re carriers to Advice of export-imports Improve functionality of POTA for overflow terminal deliveries overflow for functionality of POTA Improve to at terminals levels or service in cost Incentives and night deliveries evening encourage S olutions 2.5 2.6 3 3.1 3.2 3.3 4 4.1 4.2 4.3 4.4 2.7 2.8 Parks need to assess commercial feasibility, as they are are as they feasibility, commercial assess need to Parks ad hoc work. resourcing already at customer? on empty status of information Availability the effort make you want the service Good idea - if you book. to on be cheaper than paying demurrage to Likely pay? Why should the carrier overdue/ already containers the customer. on to will be passed /The costs issues power Market shipping lines to achieve, be difficult 2-3 parks would volume achieving to the key are this service Shipping lines should deliver speed up gate could technology recognition Optical load/unload dictates area and site cost process.Land points. loading multiple areas.Already for difficulties and commercial confusion create Would Empties should be treated in the past. Rejected carriers. separately. rigid packing to will not adhere Many customers with some carriers in QLD for Has worked schedules. of exporters and awareness Education match. to volume a major impact on receival will have pack early to day slots. last and demand for patterns , comments Further e x planation linked solutions L M H L L L L H L L Feasibilit y H H M M L M M H L H P riorit y
76 Container parks Container 1800 on specified parks opening to of container Trial days, including set Saturdays with book transactions to carriers solution for ICT hours parks during extended container at receivals out of hours for levy Small per container parks container the costs share to band together to operators Transport of park opening all receive to hours open extended 2-3 superparks to by on port parks complimented lines boxes, hours extended underwriting of a trial for Government ad hoc park bookings and for band together Carriers labour costs share than rather and unloading loading multiple Bays for truck service one gate/one the wharf and from empties to load to Use of carriers on bulk runs and fill trucks save would an enable to exporters from notice One additional day’s an import pick up to be matched to delivery export nformation Flows I nformation I mproved S olutions 5 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 6 6.1 , comments Further e x planation linked solutions Will add additional pressure on carriers. Current Current on carriers. Will add additional pressure this. should enable systems financial may forego education.Forwarders Will require faster gain if clearances required. of data collation for system Better correlation. Untest if Super B be excellent Would in short term. Unlikely lanes. use segregated to allowed Doubles and funds support. Without volumes govt Requires of next choose a hub. Part to be forced would carriers program. Awareness of Intermodal stage truck utilisation/ easier but doesn’t improve life Makes turnaround utilisation. Need to enough without linking it to Tough access. network extend conduct to at say POTA inspector A full time AQIS the issue. volumes versus inspections. Costs tailgate Feasibilit y L H L H H L M H H P riorit y M H M H H H M H H
77 Notification of carriers and DC/3PL managers copied and DC/3PL managers carriers of Notification that customer shipping line to from message in to is available container orders of delivery receipt Timely matching so improved weights container Accurate of equipment lanes on arterials Freight and hub operations to migrate to carriers Support for model business plan changes to on MSIC security checks and turnaround Quicker issue card recognise scheme to apprenticeship worker Transport occupation skilled truck utilisation rates permits to Link HECTs for insepction hours tailgate AQIS Extended carriers country Other solutions S olutions 6.2 6.3 6.4 7 7.1 7.2 7.3 7.4 7.5 7.6 APPENDIX D TRUCK UTILISATION DATA
Melbourne Port Container Origin and Destination Process Mapping Report
The mapping of port landside container movements conducted in 2003. It noted that “improving vehicle utilisation and use of backloading has multiple benefits such as –
• Reducing vehicle costs
• Improving utilisation of the road network and reducing traffic congestion
• Improving efficiencies of stevedores where the preference is to unload a vehicle and reload the vehicle in the one move.” pg 51 The analysis used on-road observations to record utilisation for container trucks. Empty running vehicles were recorded as well as empty TEU slots to capture information on vehicle utilisation.
% completely empty % empty TEU slots 78 Rigid 40 40
Rigid & trailer 30 39
Articulated 36 49
B double 35 49
Super B double 27 41
Total/Average 36 48
36 percent of trucks observed were not carrying any containers at all and the average TEUs carried was estimated to be 1.07 TEUs/vehicle against a vehicle TEU capacity of 2.12. This equates to a container vehicle utilisation rate of just less than 51 percent. Port Environs Truck Survey 2006 The Port of Melbourne Corporation, in conjunction with the Victorian Department of Infrastructure, undertook a truck survey within the Port of Melbourne and the Dynon Rail precinct over a 24 hour period on 21-22 November 2006. It found that -
• 37% of container trucks that accessed the Swanson Precinct carried a load in both directions.
• Of all truck movements accessing or leaving the Swanson-Dynon area, 59% was through traffic or had no business related to the port or Dynon rail terminal.
• Since 2002, the average number of TEUs per truck movement across the whole of the Port has increased by 9% to 1.17.
• Since 2002, the carrying capacity per truck has increased by 5% to 2.23 TEU (largely due to extra Super B-doubles permitted in 2006).
• Since 2002 the overall utilisation of container truck slots has varied between 50% and 55%, with no consistent trend.
BITRE Waterline Landside Performance Indicators 79 In 2007, the Bureau of Infrastructure, Transport and Regional Economics produced a set of Landside Indicators in the Waterline port performance monitoring publication. The following except from the most recent Waterline indicate truck utilisation at the gates of the stevedoring terminals. Table 1.1 Container terminallandside performance indicators (continued)
Port/lndicator Sep 06 Dec 06 Mar07 Jun 07 Melbourne Road Total trucks 159808 160035 179376 170839 Total containers 285218 295096 284238 276977 TEUs 345254 351972 419669 407763 Truck turnaround time-mins. 30.4 28.1 30.3 30.7 Containers per truck 1.5 1.8 1.6 1.6 Avge. container turnaround time-mins. 19.8 18.0 17.7 18.1 TEUs per truck 2.2 2.2 2.3 2.3 Rail Total containers’ 24625 25866 25500 25165 Number ofVBS timeslots available Overall total 192 107 200 146 Monday-Friday Day (0601-1800) 123774 126677 Evening (1801-2400) 36871 38860 Night (2400-0600) 20812 23722 Sub total 181457 189259 Saturday Day (0601-1800) 7022 6928 Evening (1801-2400) 692 741 Night (2400-0600) 1050 1158 Sub total 8764 8827 Sunday Day (0601-1800) 9 0
80 Evening (1801-2400) 467 596 Night (2400-0600) 1410 1464 Sub total 1886 2060 Number ofVBS timeslots used Overall total 180491 188627 Monday-Friday Day (0601-1800) 119859 123488 Evening (1801-2400) 34332 35893 Night (2400-0600) 17753 20952 Sub total 171944 180333 Saturday Day (0601-1800) 5681 5475 Evening (1801-2400) 529 466 Night (2400-0600) 808 781 Sub total 7018 6722 Sunday Day (0601-1800) 0 0 Evening (1801-2400) 459 498 Night (2400-0600) 1070 1074 Sub total 1529 1572 continued FIgure 1.7 Melbourne: Landside of container terminal size of task indicators
Sep 06 Dec 06 Mar 07 Jun07 450 420 408 400
345 352 350
295 300 285 284 277
250
200 179 171 Counts (thousands) 160 160 150
100
50 25 26 26 25
0 Total containers by road TEUs by road Total trucks processed Total containers by rail Note: The counts of containers by road, TEUs by road and trucks processed include operations under the vehicle booking system and blk runs. Source: Patrick and DP World. Figure 1.8 Melbourne: Adjusted vehicle booking system time usage 2007
Night Day Evening Saturday Sunday 100
90
80 81 70
60
50
Slots used (per cent) Slots 40
30
20
10
0 March quarter 2007 June quarter 2007 Note: The definitions of the time windows are as follows; Night (2400-0600 Monday-Friday), Day (0601-1800 Monday-Friday) and Evening (1801-2400 Monday-Friday). Source: Patrick and DP World. “The Melbourne (DP World, Patrick) average container turnaround time increased from 17.7 minutes in the March quarter 2007 to 18.1 minutes in the June quarter 2007. The truck turnaround time increased from 30.3 minutes for the March quarter to 30.7 in the June quarter 2007. The number of trucks processed decreased by 4.8 per cent in June 2007 and the total TEUs decreased by 2.8 per cent. Total containers moved also decreased by 2.6 per cent.” Source: Waterline 43. APPENDIX E Mass limits for trucks in victoria February 2007
Shaded vehicles are prevalent in wharf cartage.
RIGIDS
GML – 15.0 (6.0 + 9.0) (S) 20.0 (11.0* + 9.0) 22.5 (6.0 + 16.5) (S) 27.5 (11.0* + 16.5) 26.0 (6.0 + 20.0) (S) 31.0 (11.0* + 20.0) RFS – 16.0 (6.0 + 10.0) (S) 21.0 (11.0* + 10.0) 23.0 (6.0 + 17.0) (S) 28.0 (11.0* + 17.0) 26.0 (6.0 + 20.0) (S) 31.0 (11.0* + 20.0) NHVAS CML – 23.0 (6.0 + 17.0) (S) 28.0 (11.0* + 17.0) NHVAS HML – 23.0 (6.0 + 17.0) (S) 28.0 (11.0* + 17.0)
TRUCK TRAILERS PIG PIG PIG PIG
GML – 23.5 (6.0 + 9.0 + 8.5) (S) 31.0 (6.0 + 16.5 + 8.5) (S) 30.0 (6.0 + 9.0 + 15.0) (S) 37.5 (6.0 + 16.5 + 15.0) (S)
PIG DOG DOG DOG
GML – 40.5 (6.0 + 16.5 + 18.0) (S) 30.0 (6.0 + 9.0 + 9.0 + 9.0)# (S) 40.5 (6.0 + 16.5 + 9.0 + 9.0) (S) 42.5 (11.0* + 16.5 + 9.0 + 9.0) NHVAS CML – 41.0 (6.0 + 17.0 + 9.0 + 9.0) (S) 43.5 (11.0* + 17.0 + 9.0 + 9.0)
DOG DOG DOGDOG
GML – 42.5 (6.0 + 16.5 + 9.0 + 16.5)# (S) 42.5 (11.0* + 16.5 + 9.0 + 16.5) 42.5 (6.0 + 16.5 + 16.5 + 16.5)# (S) 42.5 (11.0* + 16.5 + 16.5 + 16.5)# NHVAS CML – 43.5 (6.0 + 17.0 + 9.0 + 17.0)# (S) 43.5 (11.0* + 17.0 + 9.0 + 17.0) 43.5 (6.0 + 17.0 + 17.0 + 17.0)# (S) 43.5 (11.0* + 17.0 + 17.0 + 17.0)# Air suspension – 45.0 (6.0 + 16.5 + 9.0 + 16.5)# (S) 45.0 (11.0* + 16.5 + 9.0 + 16.5) 50.0 (6.0 + 16.5 + 16.5 + 16.5)# (S)
SEMIS
GML – 24.0 (6.0 + 9.0 + 9.0) (S) 31.5 (6.0 + 9.0 + 16.5) (S) 39.0 (6.0 + 16.5 + 16.5) (S) 42.5 (6.0 + 16.5 + 20.0) (S) RFS – 26.0 (6.0 + 10.0 + 10.0) (S) 33.0 (6.0 + 10.0 + 17.0) (S) 40.0 (6.0 + 17.0 + 17.0) (S) 43.0 (6.0 + 17.0 + 20.0) (S) NHVAS CML – 32.0 (6.0 + 9.0 + 17.0) (S) 40.0 (6.0 + 17.0 + 17.0) (S) 43.5 (6.0 + 17.0 + 21.0) (S) NHVAS HML – 33.0 (6.0 + 10.0 + 17.0) (S) 40.0 (6.0 + 17.0 + 17.0) (S) 45.5 (6.0 + 17.0 + 22.5)** (S)
B-DOUBLES Mini B-doubles (General Access) Mini B-doubles (Approved routes only) (Overall length 19.0 m or less)
Mass limits for tag type trailers are the same as pig trailers 82
GML – 50.0 (6.0 + 16.5 + 16.5 + 16.5) (S) GML – 55.5 (6.0 + 16.5 + 16.5 + 16.5)** (S) RFS – 50.0 (6.0 + 17.0 + 17.0 + 17.0) (S) NHVA S CML – 57.0 (6.0 + 17.0 + 17.0 + 17.0)** (S) NHVA S HML – 57.0 (6.0 + 17.0 + 17.0 + 17.0)** (S) RFS – 57.0 (6.0 + 17.0 + 17.0 + 17.0)** (S)
B-Doubles (Approved routes only)
GML – 55.5 (6.0 + 16.5 + 16.5 + 16.5)** (S) 59.0 (6.0 + 16.5 + 16.5 + 20.0)** (S) 62.5 (6.0 + 16.5 + 20.0 + 20.0)** (S) RFS – 57.0 (6.0 + 17.0 + 17.0 + 17.0)** (S) 60.0 (6.0 + 17.0 + 17.0 + 20.0)** (S) 63.0 (6.0 + 17.0 + 20.0 + 20.0)** (S) NHVAS CML – 57.0 (6.0 + 17.0 + 17.0 + 17.0)** (S) 61.0 (6.0 + 17.0 + 17.0 + 21.0)** (S) 64.5 (6.0 + 17.0 + 21.0 + 21.0)** (S) NHVAS HML – 57.0 (6.0 + 17.0 + 17.0 + 17.0)** (S) 62.5 (6.0 + 17.0 + 17.0 + 22.5)** (S) 68.0 (6.0 + 17.0 + 22.5 + 22.5)** (S)
NOTES TO BE USED IN CONJUNCTION WITH THE CHART HOW TO READ THE CHART – This chart is a guide to the maximum mass allowed. The actual mass allowed is the LESSER of the sum of the axle mass limits, the manufacturers ratings, the mass limits relating to axle group spacings and the regulatory mass limits. 15.0 (6.0 + 9.0) **(S) – Vehicles with tri axles operating at Higher Mass Limits and B-doubles are only permitted on approved routes and must carry copies of the following information bulletins: Gross Individual axle Refer to symbols • B-doubles & Higher Mass Limits information bulletin; Weight Weights • Local Roads Approved for B-doubles & Higher Mass Limits Tr ucks; • Height Clearance on Roads (for vehicles over 4.3 metres high); • 26 metres B-doubles information bulletin for B-doubles between 25 and 26 metres in length; and • for non approved roads a specific permit must be issued by VicRoads to use that road. LEGEND – For the purpose of this chart all axle groups are fitted with 4 tyres per axle except for steer axle groups. GML - General Mass Limits SYMBOLS TO BE USED IN CONJUNCTION WITH THE CHART RFS - Certified Road Friendly Suspension NHVAS CML - National Heavy Vehicle Accreditation Subtract one tonne if twin-steer axle group is non load sharing * Scheme Concessional Mass Limits ** Approved routes only NHVAS HML - National Heavy Vehicle Accreditation Scheme Higher Mass Limits # Trailer mass must never exceed the truck mass except for a 4 axle dog trailer, which must not exceed 125% of the truck mass These vehicles are allowed an additional 0.5 tonne on the steer axle, which adds 0.5 tonne to the permitted gross mass (see example below), if they comply with all of the following: (s) • Euro 4 engine as required in ADR 80/01 and ADR 80/02 or later versions; FURTHER INFORMATION • Front Underrun Protection Device (FUPS) (UN ECE Regulation No 93); This chart is a summary only. Detailed • Increased cabin strength (UN ECE Regulation No 29); • A manufacturers GVM greater than 15 tonnes; and information about vehicle mass and any later • The vehicle is appropriately rated. versions of this chart can be obtained from the E.g. (6.5 + 16.5 + 20) = 43.0 (an increase of 0.5 tonne in gross weight does not require an increase in axle spacings) VicRoads website: www.vicroads.vic.gov.au
www.vicroads.vic.gov.au APPENDIX F port precinct map
83 APPENDIX g Port of Melbourne Heavy container routes
84 APPENDIX H TRUCK OPTIMISATION PLaN (TOP) PORT OF MELBOURNE/DYNON PRECINCT
What is TOP? The Victorian Freight and Logistics Council’s Freight Intermodal Efficiency Group has commenced the development of a Truck Optimisation Plan. The project, funded by the Port of Melbourne Corporation, aims to identify and capture any opportunities to reduce partially loaded and empty trucking movements in and around the Making the Plan port precinct in Melbourne. The Truck Optimisation Plan is being conducted in two stages. Stage One is to record and document the reality of the Why a Truck Optimisation Plan? complex logistics operations associated Trade is continuing to grow through the Port of with the transport task in and around Melbourne. In the international container trade, the precinct. This involves carriers one million additional containers are forecast to moving freight to and from international be added in the next decade. Coastal containers, and domestic port terminals, railheads, dry and liquid bulk and break bulk trades also warehouses, Customs facilities, container generate truck trips. In addition, there will be the storage parks and coolstores located in the annual growth of domestic freight movements in precinct. This truck traffic combines with and across the precinct. trucks moving through the locality east- west through Melbourne and deliveries Improved truck utilisation will help to significantly moving to and from the fruit and vegetable reduce congestion and social, environmental and and fish markets on Footscray Rd. economic costs associated with truck traffic delays. Transport companies are acutely aware of their “If you were to stand on the roadside down energy usage and the impact of congestion on at the port, you would wonder why trucks their bottom line. are going in and out empty or with only one container when there seems to be room “We are concerned within the industry that congestion for two. It seems strange, when we know will become the norm in this area. The greatest Australian trucking companies are among efficiency gains will be identified by those businesses the most efficient in the world. When you most affected, so we will provide the leadership and understand how things work, it is an entirely opportunity to tackle this issue before it worsens.” different picture.” Craig Webster, Chalmers Industries, Neil Chambers, Chair of the Truck Optimisation Plan project group Victorian Transport Association
Victorian Freight and Logistics Council A questionnaire to enable transport operators to have their say is available on-line or to download and complete. The VFLC is asking all companies with trucks operating in the port and Dynon precinct to give a short amount of time to complete this. Some companies will be contributing case studies to demonstrate a typical 24 hours of truck operations and the business imperatives influencing their operations. The findings from both the questionnaire and the case The agreed opportunities will be documented in a studies will be documented in a short, easy to digest plan that the VFLC can take forward with industry format and distributed within the industry. and government to implement. In Stage Two, transport operators and the broader community of port users will come together to identify How you can be part of the Truck realistic opportunities for improving truck utilisation. Optimisation Plan This will be achieved by players in the supply chain working with transport companies to put forward We invite you to participate so that your ideas ideas on how trucks can be better used in the precinct. and concerns form part of the findings of this Businesses, including the shipping lines, terminal important project. operators, freight forwarders, logistics managers and n to complete the confidential transport carrier customers will evaluate responses for their practicality questionnaire click on the link www2.esurveys. and affordability. com.au/surveyfb4/index.cfm?SID=1073 n to find out more about the Truck Optimisation “What we hope to come up with are some clever, simple Plan click on the link www.vflc.com.au What’s and effective measures we can implement in this Truck New section or telephone the Secretariat on Optimisation Plan. We have already proven through BAHS 03 9655 6457. that our port community can be very innovative when people n to participate in a case study for transport come together. We have found that lots of small steps can operators in the Port/Dynon precinct, email make a big difference and we are confident that industry can [email protected] with your contact details. 86 bring about its own solutions.” n to take part in port community workshops Alan White, Port of Melbourne Corporation, Chairman of later this year, telephone Michelle on Business Activity Harmonisation (BAHS) 03 9095 4093 to register. n to receive any news and documents from the Truck Optimisation Plan, email your details to [email protected] or telephone 03 9655 6457.
“We all have knowledge and ideas to bring to the table. Our customers will also have views and all along our supply chains clever people will be able to add value. We can’t clog the port arteries with trucks. Prevention is better than a “cure” imposed on industry.” Peter Cox, Patrick Port Services
Port of Melbourne Corporation 87 DOT3887/09