2020 Shipping Australia Limited Shipping Australia Annual Review
SHIPPING AUSTRALIA Shipping Australia Limted Annual Review 2020 SHIPPING AUSTRALIA
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201203 - Ad design_v8.indd 1 7/12/2020 10:14:03 AM CONTENTS ANNUAL REVIEW 2020
2 COMPANY OVERVIEW INTERNATIONAL ORGANISATIONS 4 FROM THE MINISTER 64 Cruise Lines International Association Australasia 6 SAL MEMBERS 65 International Chamber of Shipping 66 World Shipping Council 7 BOARD OF DIRECTORS 68 FONASBA 8 CHAIRMANS REPORT 69 International Federation of Freight Forwarder Associations 10 CEO’S REPORT MARITIME LAW AND INSURANCE 14 SAL STRUCTURE 71 International Commercial Arbitration and COVID-19 15 POLICY COUNCIL Gregory Nell 16 LINER SERVICES 72 Loss of containers at sea – a test case Gavin Vallely STATE COMMITTEE REPORTS 74 Cyber risk management in a “COVID-Normal” world 18 New South Wales Nic Van Der Reyden and Amber Albrecht 21 Queensland 76 It is trite (but right) to say that no-one benefits from trade 22 Victoria disputes Geoff Farnsworth and Nathan Cecil RETROSPECTIVE 78 Demistifying damage and demurrage claims 24 Half a century of change Peter McQueen Ken Fitzpatrick 80 What’s your limit? Limitation of liability in shipping 28 SAL VOTING MEMBERS Joe Hurley and Ryan Hunter 82 Mitigating ship berthing incidents SAL VOTING MEMBER UPDATES Laurence Jones 29 BBC Chartering Australia 30 CMA/CGM - ANL Container Line EDUCATION AND TRAINING 32 A.P. Moller-Maersk 84 Australian Maritime College 33 MSC Mediterranean Shipping Company NAVIGATION COMMONWEALTH AGENCIES 86 Australian Hydrographic Office 35 Department of Agriculture, Water and the Environment 89 OMC International MARITIME SAFETY PILOTAGE 36 Australian Maritime Safety Authority 90 Port Phillip Sea Pilots 38 Australian Transport Safety Bureau 94 Australian Pilotage Group STATE TRANSPORT AND LOGISTICS TOWAGE 40 Queensland 96 Smit Lamnalco PORTS STEVEDORING AND TERMINAL OPERATORS 42 Ports Australia 99 Patrick Terminals 44 Port Authority of New South Wales 101 Hutchison Ports Australia 46 NSW Ports 104 Australian Amalgamated Terminals 47 Port of Newcastle 105 Melbourne International RoRo and Auto Terminal Pty Ltd 50 Gladstone Ports Corporation SUPPORT AND INNOVATION 52 Port of Brisbane Pty Ltd 54 Port of Townsville 106 Serco Asia Pacific 55 Flinders Port Holdings CONTAINER MANAGEMENT 56 Port of Melbourne 58 Victorian Ports Corporation (Melbourne) 107 1-Stop Connections 60 Mid West Ports Authority 62 Pilbara Ports Authority
THE OFFICIAL JOURNAL OF SHIPPING AUSTRALIA LTD Publications Commitee Ross McAlpine Advertising Co-ordinators Level 6, 80 William Street, Frank Needs Steve Moxey Sharyn Flood Woolloomooloo NSW 2011 James Granville P: +61 400 473 200 P: (02) 9167 5833 PO Box Q388 Sydney NSW 1230 Executive Editor Rod Nairn E: [email protected] E: [email protected] P: 02 9167 5838 Executive Assistant Sharyn Flood W: www.shippingaustralia.com.au Graphic Designer Paul Ortiz-Gomez Shipping Australia Magazine is published for Shipping Australia Ltd by Ontime Pubications. Shipping Australia Limited I Annual Review 2020 1 Our Vision The first choice for membership of a national shipping industry body promoting the interests of the shipping industry and creating enduring value for our members. An independent voice, trusted by Government and industry bodies for providing quality, expert advice.
Our Mission To promote and advance the interests of members in shipping policy for a sustainable maritime industry.
Our Values Professionalism, Respect, Integrity, Teamwork
Overview Shipping Australia Limited is a peak Shipping industry association with 29 member lines and shipping agents and with 41 corporate associate members which generally provide services to the maritime industry in Australia. Our members are involved with over 80 per cent of Australia’s international container and car trade, as well as over 70 per cent of our break bulk, roll-on roll-off and bulk trade. A number of our members are also actively engaged in the provision of coastal cargo services to Australian consignors and consignees. Our members include cruise ship and towage operators. A major focus of SAL is to promote efficient and effective maritime trade for Australia, whilst advancing the interests of ship owners and shipping agents. SAL also provides secretariat services to companies that have agreements registered under Part X of the Australian Competition and Consumer Act, 2012.
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Disclaimer: Readers are advised that Shipping Australia Limited and the Publisher cannot be held responsible for the accuracy of statements made in advertising and editorial, nor the quality of the goods or services advertised. Opinions expressed throughout the publication are the contributors own and do not necessarily reflect the views or policy of Shipping Australia Limited or the Publisher. While every reasonable effort has been taken to ensure the accuracy of the information contained in this publication, the Publisher takes no responsibility for those relying on the information. The Authors, Publisher and Shipping Australia Limited disclaim all responsibility for any loss or damage suffered by readers or third parties in connection with the information contained in this publication. Nothing in this publication should be construed as personal or professional advice and should be read as general information only.
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Shipping Australia Limited I Annual Review 2020 3 FROM THE MINISTER
The importance of freight and the seafarer highlighted in the COVID year By the Hon MICHAEL MCCORMACK MP, Deputy Prime Minister, Minister for Infrastructure, Transport and Development
For the Australian shipping industry, we of an interrupted global supply chain we Maritime crewing issues are a truly can look back on 2020 as the year that faced this year. global challenge, and the Australian certainly challenged all of us. Government has been working The Australian Government worked closely with the International Maritime It was also the year Australian families closely with industry to identify and Organization (IMO), the United Nations and businesses realised the vital role secure the supply of essential products and other international agencies, as well shipping and transport play in their for Australian businesses, families as bilaterally, on crew and supply chain everyday lives. and important frontline workers, and issues. This has included supporting to ensure their continued supply. Our For the tireless efforts of all transport the adoption of an IMO Resolution on medicines and personal protective industry workers, which enabled crew changes and the development of equipment, so essential in these Australia to respond so well, I would like industry protocols to facilitate safe crew difficult times, were prioritised through to offer my sincerest thanks. changes. the supply chain to ensure our health Scenes of supermarket shelves stripped professionals had and continue to have We cannot talk about the impact of of toilet paper and other essential items the products they need to do their jobs. 2020 on the shipping industry without highlighted the need for efficient supply acknowledging the plight of the cruise For the tireless efforts of all transport chains to every household. One positive industry. The Australian Government’s industry workers, which enabled – the Australian public are now far more decision to ban the arrival of cruise Australia to respond so well, I would like aware of the importance of freight to ships from foreign ports was based to offer my sincerest thanks. their everyday lives. on expert medical advice, with the There are those in the shipping industry safety and wellbeing of all Australians I am proud of the action the Australian who have been doing it tough. Our the number one priority. However, the Government has taken to keep goods seafarers have faced an enormous set of impact on the cruise industry has been moving, ensuring early in the COVID-19 challenges over this past year as borders significant. The Australian Government crisis that our supply chain workers closed around the globe, preventing continues to work with the cruise sector could keep doing what they do best. repatriation and halting much-needed to implement arrangements to allow The measures we put in place ensured shore leave. For many, this has meant the recommencement of cruising, while Australia’s supply chains kept functioning extended periods of time in quarantine also ensuring the continued health and and did not suffer from critical shortages or relocated to another State, with no safety of passengers and crew. This in essential supplies. Our ports stayed prospect of seeing home, while friends and recommencement will be important for open, our trucks and trains kept moving, family faced COVID-19 without them. so many who rely on this key industry. our warehouses kept operating, and our To all of our seafarers, who have Throughout the next year, we will exports and imports kept flowing. continued to work under these trying continue to see the impacts of COVID-19 We can all take pride in meeting the conditions, I say thank you. play out through the global economy. challenges of 2020 through the strong Many of our overseas counterparts The Australian Government has been collaboration of Governments, industry continue to face the immediate impacts working closely, through the National and regulators, such as the Australian of the COVID-19 pandemic and we wish Cabinet and the specially formed Maritime Maritime Safety Authority (AMSA). them the all the best. Response Group, to address issues Looking to the future, I was pleased relating to the movement of maritime Here, the Australian Government to recently appoint Captain Jeanine crew in Australia to enable crew changes, will continue to work closely with Drummond to the AMSA Board. Captain international maritime obligations, maritime stakeholders to open up and increase Drummond has impressive experience visas, aviation caps and supply chain trade, while keeping Australians safe. in international shipping, port operations impacts. It is a valuable platform for Next year will also be challenging but our and maritime training, which I am sure information sharing between industry and recent experience has given us a solid will be of benefit to all. Australian Governments and for aligning foundation to continue our recovery. health practices. I would like to thank I am confident shipping will rebound to To everyone in shipping, again, I say Shipping Australia for their continued pre-COVID levels, despite the challenges thank you. support of this group.
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Shipping Australia Limited I Annual Review 2020 5 SAL MEMBERS
Voting members Brisbane Marine Pilots Pty Ltd A.P. Moller-Maersk A/S Clyde & Co Asiaworld Shipping Services Pty Ltd Colin Biggers & Paisley Pty Ltd BBC Chartering Australia Pty Ltd Darwin Port Corporation Pty Ltd CMA CGM Group Agencies (Australia & New Zealand) DP World Australia Pty Ltd Evergreen Marine Australia Pty Ltd Flinders Ports Holdings Pty Ltd Gulf Agency Company (Australia) Pty Ltd Fremantle Ports Hamburg Süd Australia Pty Ltd Henning Harders Shipping Australia Hapag-Lloyd (Australia) Pty Ltd Holding Redlich Hyundai Merchant Marine (Australia) Pty Ltd Holman Fenwick & Willan Inchcape Australia Limited Hutchison Ports Australia Pty Ltd K Line (Australia) Pty Ltd HWL Ebsworth Pty Ltd LBH Australia Pty Ltd Maritime Services Queensland Mediterranean Shipping Co (Aust) Pty Limited Melbourne International RoRo & Auto Terminal Pty Ltd MOL Shipping Australia PTY LTD NSW Ports Pty Ltd Monson Agencies Australia Pty Ltd OMC International Pty Ltd Neptune Pacific Agency Australia Pty Ltd Patrick Stevedores Operations Pty Ltd NYK Line (Australia) Pty Ltd Peter McQueen Pty Limited Ocean Network Express (Australia) Pty Ltd Port Authority of New South Wales Oldendorff Carriers Melbourne Pty Ltd Port Kembla Gateway Pty Ltd OOCL (Australia) Pty Ltd Port Lincoln Tugs Pty Ltd Pacific Asia Express Pty Ltd (PAE) Port of Brisbane Pty Ltd Quay Shipping Australia Pty Ltd Port of Townsville Ltd Seaway Agencies Pty Ltd Port Phillip Sea Pilots Pty Ltd Ship Agency Services Pty Ltd QUBE Ports Pty Ltd Smit Lamnalco Towage (Australia) Pty Ltd Royal Wolf Trading Australia Pty Ltd Svitzer Australia Pty Limited Serco Asia Pacific The China Navigation Company Pte. Ltd. The Merchant Navy War Memorial Fund Ltd (Australian Branch) Thomas Miller (Australasia) Pty Ltd Wallenius Wilhelmsen Logistics A/S Thompson Clarke Shipping Pty Ltd Wilhelmsen Ships Service A/S Victoria International Container Terminal Ltd Victoria Ports Corporation (Melbourne) Corporate associate members Westug Pty Ltd 1-Stop Connections Pty Ltd AGS World Transport Pty Ltd Individual members Ausport Marine Mr Frank Needs Australian Amalgamated Terminals Pty Ltd Mr Ross McAlpine Australian Maritime College Australian Pilotage Group Australian Reef Pilots Pty Ltd
*As at 1 November 2020
6 Shipping Australia Limited I Annual Review 2020 BOARD OF DIRECTORS
Scott Henderson Kevin Clarke Chairman Appointed 12 November 2003 Appointed 24 February 2015 Kevin Clarke has worked in (Chairman 2 December 2016) the shipping industry for over Managing Director, Gulf Agency 52 years, the past 30 of which Company (Australia) Pty Ltd since have been as managing director, 2014. Scott has 27 years of agency Mediterranean Shipping Company experience in Australia, prior to that (Aust) Pty Limited. he served as deck officer in the British merchant navy for seven years.
Geoff Greenwood Eddy DeClercq Appointed 3 May 2004 Appointed 8 August 2008 Managing Director, Hamburg Managing Director OOCL Süd Australia Pty Ltd. with (Australia) Pty Ltd. Eddy has 36 years shipping industry 38 years of shipping industry experience, Geoff has held key experience in various key commercial and management commercial and management positions in Canada, USA and positions in Belgium, Denmark, Australia. The Netherlands and Sydney.
Tsukushi Sato Shane Walden Appointed 1 August 2019 Appointed 1 August 2019 Tsukushi Sato is the Managing Shane Walden is the recently Director of NYK Australia Pty Ltd, appointed Managing Director based in Melbourne. Mr Sato joined of CMA CGM Group Agencies NYK Line in 1986 and has extensive Australia/NZ. He has extensive experience with liner trades, tanker experience in liner shipping and RO/RO vessel operations. gained through shipping line appointments in Australia, France, and Hong Kong.
Henrik Jensen Captain Sunil Dhowan Appointed 18 February 2020 Appointed 1 September 2020, SAL VIC State Chairman - 2016-2019 Area Managing Director Oceania, Maersk, more than 20 years General Manager Operations within the logistics and supply Oceania, Wallenius Wilhelmsen. chain industry. Sunil has 42 years of holistic experience on ships and ashore in the maritime logistics industry. He has held various key management roles in Australia.
*As at 1 November 2020
Shipping Australia Limited I Annual Review 2020 7 CHAIRMANS REPORT
Meeting the COVID-19 challenge
By SCOTT HENDERSON
The COVID-19 year, 2020 has certainly relation to COVID-19 - keeping members roles back in 2019, which ultimately led been a different year for all of us in informed of myriad changes to national, to the employment of Jim Wilson as our own businesses, for Shipping State and local policies and regulations Communications and Policy Officer, in Australia Limited and in our private that impacted the shipping industry at February this year. Jim’s engagement lives. Shipping Australia started the every change. The ‘frustrating’ has been has enabled the more frequent year developing new ideas to promote the relentless advocacy and engagement publication of SAL Signal, LinkedIn the use of the blue highway in support with those three levels of governance, posts and Twitter feeds, which has of the Government’s latest review of in a continuing effort to get reasonable ensured that SAL is more prominent in coastal shipping, building the case for policies adopted and some level of policy the wider media, and strengthens our an ocean liner shipping block exemption alignment between the ‘Dis-united States leadership position in public comment to support efficient consortia operations of Australia’ (and even individual ports on international and national shipping for international shipping, and arguing within those States). The ‘change’ has related matters. After an extensive against the introduction of a new levy on come in various forms, at the Board review and selection process the SAL all containers in Melbourne to subsidise level, the staff level and operational Board decided on the appointment improvements to on-dock rail at two aspects introducing new working routines of current Deputy CEO and General terminals only. By the beginning of and including virtual meetings for both Manager Shipping Policy and Technical March, like the rest of the world, our internal and external engagement. Services, Captain Melwyn Noronha focus was shifting towards the impacts as the Chief Executive Officer from 1 At the Board level, Adrian Petersen left of COVID-19 on the international January 2021. Melwyn has been with the Board last December, following his shipping sector, and by the end of that SAL since 2015 and has demonstrated departure from Wilhelmsen Ship Services month we could really think of nothing his extensive knowledge of the industry, and was replaced by Henrik Jensen else. and his ability to liaise and influence at (Maersk). At the end of June, Ken the highest levels. His qualifications This year, I was very pleased to welcome Fitzpatrick (Asiaworld Shipping Services) through the Australian Maritime College Ocean Network Express (ONE), retired after 14 years, including four as and his experience as a master of bulk Hyundai Merchant Marine Australia chairman from 2012 to 2016. I would like carriers certainly add to his credentials. and Oldendorff Carriers, as new full to especially acknowledge Ken who has members. From the feedback I have been a dedicated advisor and contributor I would like to thank Rod for his received, all three are very pleased with to the operations of SAL, and I draw exceptional leadership and dedication their decisions to take up membership. your attention to his recollections of 50 to Shipping Australia Limited since he ONE has now matured its operations in years in the shipping business published joined the company in January 2013. Australia, HMM is returning to SAL after under the title ‘Retrospective’ in this Rod’s ability to quickly identify problems a few years break and Oldendorff, one of magazine. The casual vacancy was filled and provide cost-effective and innovative the largest dry bulk carrier operators in by Captain Sunil Dhowan, Wallenius solutions has certainly modernised the world, is keen to use SAL’s expertise Wilhemsen Ocean, a former chairman of and strengthened the organisation. He and information to keep abreast of port, SAL’s Victorian State Committee, whose has steered SAL through a challenging State and national regulatory changes, experience spans agency, RoRo and period which saw the demise of the Liner and wants to contribute to the shipping terminal operations. Shipping Vessel Discussion Agreements policy debate. The participation of to emerge leaner, stronger, more efficient At the SAL staff level our Chief Executive these new companies makes Shipping and more influential in shipping and Officer, Rod Nairn, has now implemented Australia’s influence even stronger. logistics policy. the final stage of his retirement plan, For Shipping Australia Limited, it has which has been in train for a few years SAL has maintained our part-time State been an exceptionally busy year, an now. His preparations included the secretaries in Queensland and Victoria. excruciatingly frustrating one, and a gradual digital transformation of SAL In both States COVID-19 restrictions year of change. The ‘busy’ has been in and a review of SAL staff functions and forced the cancellation of our usual
8 Shipping Australia Limited I Annual Review 2020 networking events such as golf days, numbers. We sincerely apologise for vessels with the same brush. Inconsistent breakfasts and luncheons, and even the disappointment of those who were and irreconcilable State restrictions, the Queensland Shipping Industry unable to be accommodated and do both here and overseas, have meant that Ball. In Queensland, State Committee hope that it never happens again. It ships’ crews have been denied shore Secretary, Geoff Dalgliesh and his State really was a fantastic event and a great leave, forced to remain onboard well past Chairman, Michael Travers have kept way to break out of the COVID-19 their employment contracts, and in many members engaged and informed through imposed isolation. Many thanks to our cases refused access to medical and State Committee meetings, using video major sponsor NSW Ports, to DPWorld dental services. Ship’s agents have taken conferencing, and as the year comes to for providing the table gifts and a the brunt of the burden to get approval a close, Geoff has been able to squeeze special thanks to AGFS Port Logistics/ for seafarer movements, and SAL staff in a last-minute Christmas lunch event at AGS World Transport for sponsoring the have helped to oil the wheels of the Events on Oxlade, New Farm. inimitable Vince Sorrenti, to have the bureaucratic processes when they grind guests laughing until they cried. to a halt. Surprisingly, after nine months In Victoria, Charles Masters continues of COVID-19 threat, with a few notable as State Secretary, while Rod Begley With severe restrictions on travel, there exceptions, such as Maritime Safety has stepped down from Chairman to has been no face-to-face engagement Queensland, there are still few clearly pursue a career move into stevedoring in between our head office staff and our published protocols on how a State or Papua New Guinea. We thank Rod for members in South Australia or Western port will deal with a ship with a suspected his commendable service over the past Australia this year. The frenetic pace and or confirmed COVID-19 on board – most two years. The role of State Chairman high workload in relation to COVID-19 are left languishing at sea for days or for Victoria has been ably filled by James has kept the headquarters staff fully weeks while representatives plead with Kurz, who previously held the Deputy occupied, unfortunately engagement authorities to support the vessel. State Chairman role. Shipping Australia with these States has suffered. In Victoria therefore remains on a solid Western Australia, Christy Kraker (Ship As we close out 2020, I am sure we can footing, with attributes of experience and Agency Services), is now in her third all agree that we wish 2021 not be quite enthusiasm to maintain its momentum. year as chair, and in South Australia, so demanding. I thank the member Paul Paparella (Asiaworld Shipping volunteer chairmen and committee The New South Wales State Committee Services) continues as State chairman members for their contribution. I also continues to be chaired by Bill Rizzi and represents on the South Australian thank Shipping Australia staff for their (MSC), and has been expertly supported Freight Council. It will be important that dedicated efforts to provide the best by New South Wales State Secretary, we restore regular information events possible information to members, and Melwyn Noronha. Pleasingly, New with these States, both in person and by to influence governments at all levels South Wales was fortunate to hold video conference over the coming year. to take the international shipping the only shipping industry State golf industry into account when reacting day this year, just a few weeks before The COVID-19 year has been a to emergencies and setting policies. COVID-19 gathering restrictions came challenging year for the shipping Finally, I thank Rod Nairn for his tireless into effect, however since then, most industry, but the standout casualty of efforts to keep Shipping Australia on of the other usual networking functions this pandemic has been the plight of an even keel and navigating in safe have been curtailed. On the up-side, the humble seafarer. Ships’ crews have waters over the past eight years and the famous New South Wales State been isolated, and virtually imprisoned on look forward to our new chapter with Committee Christmas lunch was their ships since before the beginning of Melwyn Noronha at the helm. able to go ahead on 4 December, the pandemic, when media coverage of albeit with a 50 per cent reduction in COVID-19 infections wrongly tarred cargo
Major sponsor NSW Ports CEO, Marika Calfas, addresses guests at the SAL Christmas Lunch
Shipping Australia Limited I Annual Review 2020 9 CEO’S REPORT
It’s a mad, mad, mad world
By ROD NAIRN
Over the course of this year the and those shipping companies who tarred cargo vessels with the same COVID-19 virus has turned our world had moved early to fit scrubbers and brush. Inconsistent and irreconcilable upside down, and nearly eleven months allow the continued used of 3.5 per State restrictions both here and overseas down the track, there is no real end cent sulphur fuel (HSFO) were rubbing have meant that ships’ crews have been in sight. The rate of infection is near their hands with glee. This was to be denied shore leave, forced to remain the highest that it has been since short-lived for two reasons: firstly, oil onboard well past their employment the pandemic began, with around companies were quicker than expected contracts and in many cases, refused 660,000 new cases each day. As of 6 to respond to the increasing demand, but access to medical and dental services. December, the World Health Organization more crucially, the impact of COVID-19 The vast majority of SAL’s frenetic reports that COVID-19 has infected stifled demand in March, and by mid- workload has been in attempting to nearly sixty-six million people and is April VLSFO prices had plunged 79 influence States to allow seafarers to be responsible for more than 1.5 million per cent to around $220. The price treated like human beings and provided deaths. Encouragingly, the mortality differential between VLSFO and HSFO with access to medical care, and to rate of COVID-19 infection remains had narrowed to around $60, completely facilitate crew changes to allow their relatively low, averaging around 2.3 per undermining the benefit/cost business repatriation home. cent. The recent announcements that case for fitting scrubbers, but the lower Sadly, some Australian States and ports three separate successful vaccines will fuel price certainly helped much of the have played their part in making things be available early next year has certainly shipping industry survive in the first three more difficult than they need to be. boosted market confidence, and share months of COVID-19 uncertainty. Throughout the COVID-19 crisis, SAL markets all over the world are rushing The move of SAL headquarters to 80 has made massive efforts to smooth to record levels. Lockdown and travel William Street, Woolloomooloo, last year the wrinkles in conflicting regulations restrictions have kept people in their and introduction of video conferencing relating to the movement of seafarers homes, and there is a consumer rush to capabilities, both in the boardroom and internationally and domestically. Helping buy things when they previously would at the desktop, was indeed prescient. to make sense of the confusion so have spent on services. This demand All staff had already been transitioned that shipping companies, agents and has resurrected the container industry to portable computers and the internet overseas load ports can navigate from all-time lows in May to all-time telephone system supported remote through the labyrinth of discordant highs in November. Yes, it’s a mad, mad, office functions. When COVID-19 restrictions established in Australia’s mad world. escalated, SAL staff could immediately States and ports, Shipping Australia At the start of the year, from the global switch to working from home, the published a comprehensive web blog perspective, the big threat for global reduced commuting time and reduced listing the chronological changes to rules shipping which had been talked about travel for external meetings has been at the Federal and State (and in some for nearly four years, was “IMO 2020”, converted into additional productivity. instances port) levels. As regulatory the requirement for all ships to use 0.5 For much of April through to June, only stability improved, this was converted to per cent sulphur fuel or fit scrubbers one staff member was at the office, but a COVID-19 information section which to remove excess sulphur from their SAL’s workload and effectiveness has provided a synopsis of regulations and exhaust emissions. In January, ships been higher than ever. links to the source regulations, which apply of all types were still scrambling to fit at the Federal and State levels. The site Sadly, the standout casualty of this scrubbers, and all those who had not has received hundreds of thousands of pandemic has been the humble seafarer. already done so were demanding their views from all over the world. Ships’ crews have been isolated, and share of the limited global supply of virtually imprisoned on their ships since In local policy matters, the Victorian Very Low Sulphur Fuel Oil (VLSFO). This before the beginning of the pandemic, State Government’s amendment of caused VLSFO demand and rates to when media coverage of COVID-19 the Melbourne Port Pricing Order to skyrocket. At the beginning of January, infections onboard cruise ships wrongly implement an additional levy on import VLSFO fuel in Singapore was US$734,
10 Shipping Australia Limited I Annual Review 2020 containers to fund more efficient on-dock revenue stream. Why should the port’s at the Minister’s Freight and Logistics rail, was not well received. Don’t get me users pay to rectify the fact that the Advisory Council since June, and SAL wrong, Shipping Australia’s members purchaser of the port did not allow for participates in a special Empty Container support on-dock rail, and we support the this investment in their purchase? Working Group aimed at improving user-pays principle, but the concept of coordination between lines, stevedores, In New South Wales, regulatory much pay before you use, based on a promise empty container parks and trucking effort has been spent on helping of future efficiency, really irks the shipping companies. The discussions between members seek exemptions from industry. We prefer the toll road principle the parties could be described as ‘robust’ restrictions on crew changes and – pay when you receive the benefit. but there has been positive progress, access to medical services. Meanwhile Unfortunately, this ‘pay before you use’ particularly in the raising of container stack the State Committee meetings have financing chicanery seems to be the new levels and rezoning additional space for continued to address other important cancer spreading through many port and temporary container storage. and sensitive matters, including double terminal infrastructure developments. charging of navigation services charges Despite the COVID-19 distraction, Another Victorian policy matter is the for some ships in Port Jackson and Port Shipping Australia has continued to Port of Melbourne’s application to Botany, container congestion in Sydney, take the lead on important international rebalance their tariff to increase the and delays and backlogs at terminals. trade and policy matters, and delivered wharfage fee for import containers These matters have driven a huge significant benefits to carriers and ships’ carried on large container vessels (those workload in terms of liaison efforts, with agents. In a real win for our members, greater than 300 metres in length or 40 Transport for New South Wales, and letters the proposed biosecurity levy in all its metres beam), and provide a deduction to ministers and the Premier. Container forms, was finally defeated. On 20 May, to export wharfage. Our members congestion and a shortfall of equipment the Department of Agriculture announced strongly support the need for Port of globally has been driven by COVID-19 that the Commonwealth Government will Melbourne to invest in supporting larger impacts, particularly blankings, route fund biosecurity adequately through ship visits to the port. However, the changes and warehouse closures, but in budget appropriations and existing facilitation of big ship visits to the Port of Sydney it has been compounded many cost recovery arrangements for the Melbourne is not a choice for the port, times by weather-influenced port closures, Department for Agriculture. This it is an essential investment to ensure severe industrial action at stevedores, rail outcome aligns with Shipping Australia’s the future of the port, and one that was upgrades at some terminals, reducing consistently stated position that strong clearly apparent before the port was efficiency, and State Government biosecurity benefits all Australians, privatised. It seems incongruous to now mandated closures of a major empty and is as important to Australia’s ask the port users to fund the investment container park, just at the critical time. security and economic well-being as which will increase the port’s future This matter has been on top of the agenda defence. Therefore, biosecurity should
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Shipping Australia Limited I Annual Review 2020 11 be properly funded via national budget It would be unusual to go through a year Our regular readers would already know appropriations, with all Australians without talk of coastal shipping, and of that this is the last Chief Executive Officer’s contributing through the taxation system. course some work has been going on in report that I will write for Shipping Australia this area. Shipping Australia made two Limited, as I hand over to Melwyn Noronha Brown marmorated stink bugs are submissions to different phases of the on 31 December. I joined the organisation continuing to be a major risk to our current review, and also engaged directly in January 2013 on a six-month contract, industry, particularly break bulk and PCC with the Department of Infrastructure. and by a curious confluence of events sectors, though the overseas treatment Shipping Australia’s submission generally have been here for just under eight years. network is now more mature. Last year’s recommends a reduction in unnecessary I came to the role from a background efforts in the development of the “BMSB bureaucracy, that where there is no of hydrographic surveying, navigating Voluntary Vessel Scheme” will hopefully declared Australian flag shipping to and sea command, after 38 years in the ease some of the pinch points this year. protect, the onerous waiting times and Royal Australian Navy but it was a steep The next major biological risk on the cargo limits be waived. Also during learning curve to come to grips with the horizon is the Khapra Beetle, and the year, the Queensland Government idiosyncrasies of international commercial this poses a potential risk to the commissioned its own coastal shipping maritime trade. I would like to thank container sector, as the Department of review, with the intent of supporting successive Chairmen, Ken Fitzpatrick and Agriculture is considering compulsory coastal shipping development in that Scott Henderson, and the SAL Board, treatment of all shipping containers State. particularly Geoff Greenwood, Kevin under Phase 6 of their strategy, and Clarke and Eddy deClerq for their technical SAL’s communications performance has indicated a timeline of early 2021. insights and guidance, which enabled me progressed in leaps and bounds over Shipping Australia has objected to adapt to this new world. the past year. The popularity of Signal, to the proposed timescale. It is the SAL website and LinkedIn metrics Shipping Australia’s members employ imperative for the maintenance of are quite frankly amazing, with users, more than 3,000 people here in Australia. efficient international trade that new sessions, pageviews and followers, They perform a crucial role enabling or revised measures for treatment of all up around 300 per cent over the Australia’s vital maritime trade which containers themselves (not specifically year. Meanwhile, our flagship Shipping underpins our economy, bringing the related to the cargo) are implemented Australia Magazine continues to attract goods that every Australian desires, and globally and are consistent with the positive comment and confirm our taking our exports to foreign markets. I internationally adopted regulatory position as the most influential shipping have been privileged to work with so many governance framework and inspection industry association on the Australian wonderful people from our close-knit regimes for shipping containers. The scene. All of these channels now staff, SAL’s Policy Council and associate Department of Agriculture has not been provide very good value for advertising, members, suppliers and customers, other able to provide any details of the age of and members are given discounted industry associations and government containers found to be contaminated, rates and preferential positioning in all regulators. It is the people you meet the date of their last container CSC modes. Our Shipping Australia Limited and relationships that you develop inspection, their ACEP status or the SAL App provides easy access to SAL along the way that make work and life type of insecticide used to treat the Web information, as well as introducing worthwhile. The Catch 22 is that it is those container flooring. These are key the capability for push messaging, is relationships that make it hard to let go, factors in identifying risk components available on the Apple App store or but with Shipping Australia on an even keel that need to be investigated before a Google Play. and in safe hands the time is right. I wish solution can be contemplated. you all fair winds and following seas in a COVID-19-free world.
12 Shipping Australia Limited I Annual Review 2020 Your wellbeing and health are important
Seafarers work under some of the toughest conditions, facing daily challenges like no other workplace. Now, with the COVID-19 pandemic seafarers shoulder an even greater burden.
P200720
Find information and support at amsa.gov.au/your-wellbeing-sea
Shipping Australia Limited I Annual Review 2020 13 SAL STRUCTURE
SAL Staff Bryan Sharkey, Company Secretary/Financial Controller; Sharyn Flood, Executive Assistant; Jim Wilson, Policy and Communications Officer; Melwyn Noronha, General Manager, Technical Services and Industry Policy; Rod Nairn, Chief Executive Officer.
National steering groups State committees
Border Agencies Steering Group New South Wales State Committee Chairman: Dorian Moga Chairman: Bill Rizzi Secretary: Melwyn Noronha Container Steering Group Chairman: Dexter Vaz Queensland State Committee Chairman: Michael Travers Human Resources Steering Group Secretary: Geoff Dalgliesh Chairman: Eddy DeClercq
Maritime Legal Steering Group South Australia State Committee Chairman: Dorian Moga Chairman: Paul Paparella Secretary: Rod Nairn Public Relations Steering Group Chairman: Rod Nairn Victoria State Committee Technical Steering Group Chairman: James Kurz Chairman: Andrew Karas Secretary: Charles Masters
Bulk Shipping Group Chairman: David Pratt Western Australia State Committee Chairman: Kristy Craker Liner Shipping Steering Group Secretary: Rod Nairn Chairman: TBA
14 Shipping Australia Limited I Annual Review 2020 POLICY COUNCIL
Policy Council representatives attending 2020 end of (Covid) year meeting - in person and virtually
Policy Council members [representatives]
A.P. Moller-Maersk A/S LBH Australia Pty Ltd Seaway Agencies Pty Ltd Henrik Jensen Johnny Tam Craig McElvaney [Alan Sims] Asiaworld Shipping Services Pty Ltd Mediterranean Shipping Co (Aust) Ship Agency Services Pty Ltd Graeme Simpson [Ken Fitzpatrick] Pty Limited Kristy Craker Dorian Moga [Bill Rizzi] BBC Chartering Australia Pty Ltd Smit Lamnalco Towage (Australia) Alex Wellington [Maren Igel] MOL Shipping Australia PTY LTD Pty Ltd Hideyuki Irisawa David Fethers CMA CGM Group Agencies (Australia and New Zealand) Pty Ltd Monson Agencies Australia Pty Ltd Svitzer Australia Pty Limited Shane Walden [Haroldo Stival] Rob Davis Nicolaj Noes [Ivan Spanic] Evergreen Marine Australia Pty Ltd Neptune Pacific Line The China Navigation Company Murray Read [Sam Read] Rolf Rasmussen [Bill McDonald] Pte Ltd (Australian Branch) Greg Metcalfe [Peta Kelly] Gulf Agency Company (Australia) Pty Ltd NYK Line (Australia) Pty Ltd Scott Henderson [Gareth Long] Tsukushi Sato [Robert Moran] Wallenius Wilhelmsen Logistics A/S Sunil Dhowan Hamburg Süd Australia Pty Ltd Ocean Network Carriers Geoff Greenwood [Dominic Enthoven] Alex Rawley [Anthony Kelly] Wilhelmsen Ships Service Pty Ltd Michael Buchanan Hapag-Lloyd (Australia) Pty Ltd Oldendorff Carriers Clinton Evans [Anurag Aggarwal] Ben Harper [Colin Everett] Hyundai Merchant Marine OOCL (Australia) Pty Ltd (Australia) Pty Ltd Eddy DeClercq Len Phillips Pacific Asia Express Pty Ltd (PAE) Inchcape Shipping Services Michael Horsburgh [Mario Fernando] David Pratt/Bill Drennan [John Van Pelt] Quay Shipping Australia K Line Australia Pty Ltd Darren Dumbleton Alan Miles [Phillip Homes]
Shipping Australia Limited I Annual Review 2020 15 LINER SERVICES
MSC Brunella entering Port Adelaide
Glacial progress on liner block exemption
By ROD NAIRN
In liner shipping SAL All liner shipping members were Last year, I described the ACCC’s engaged early in the year to provide progress on this important policy continues to provide Part X input to Shipping Australia’s submission, development as ‘glacial’. There is no registration services to those which was submitted to the ACCC reason to change this view. Since the lines operating consortia at the end of February. An important closing of submissions there has been theme was that international liner no further public information from the agreements and vessel sharing shipping requires long-term investment, ACCC, despite our repeated requests for arrangements. and this investment is unlikely to occur a progress report. In view of the above, unless there is certainty of regulation. it is unlikely that there will be a new block Therefore, we encouraged the ACCC exemption in place within the next year. to adopt the full ten-year duration Of course, the future of Part X remains a of a class exemption, supported by separate matter to be determined by the the evidence that the existing Part X Federal Government, once the eventual regime has been operating successfully block exemption has been implemented to support adequate and economic and thoroughly tested. shipping at competitive freight rates This year has been an amazing one for more than 50 years, with minimum for container shipping. After the initial change. This stability has supported manufacturing shut down in China, the the expansion of liner shipping services COVID-19 pandemic led to far more and the maintenance of competitive wide-reaching economic shutdowns freight rates. across the world. Millions of consumers
16 Shipping Australia Limited I Annual Review 2020 were forced into isolation, shops and also had to absorb the shift in cargo an attempt to clear the backlog but businesses closed and manufacturing volumes towards sea freight, with lines berth availability in Botany remains at industries reduced their production levels adding extra lifters and new services as a premium, with some larger ships still to meet demand. As a result, by April demand soared. omitting the port. ZIM Line took the all key container routes were negatively opportunity of strong demand levels The idle container fleet never reached impacted by declining demand. and good freight rates to return to the the predicted 3 million TEU, and since Australian trade, having departed in The industry was quick to respond, peaking at around 2.7 million TEU in 2014. They launched a new weekly adjusting capacity and, where necessary, June, has recovered to only 800,000 TEU reviewing its serviced routes. The idle at the end of September, with much service from northern China to east immediate reaction was a high number of this taken up by ships off-line in refit coast Australian ports in October, and a of service withdrawals and blank sailing or undergoing scrubber fitment. Since second service in December. extending across March and April. This then, carriers have been scrambling for As we approach Christmas, the biggest was on top of the high level of inactive extra capacity, and both charter rates concern for the liner industry is the vessels, totalling 2.46 million TEU, that and freight rates have reached their global shortage of equipment brought was already in place at the beginning highest levels in ten years. about by one simple fact. Demand for of March (due to the Chinese New Year In Australia, the rebound was very containerised consumer goods is so high quiet period, which was extended by at pronounced in June, with all container that congestions of terminals and empty least an additional two weeks due to the ports exceeding trade expectations, in container storage locations, is occurring COVID response in China). what is traditionally a slow month. The all around the world. In order to But the situation was only to get worse. Australian COVID-19 box trade rebound reasonably maintain scheduled windows, Globally, more than 250 scheduled coincided with a number of temporal terminals are forced to limit container sailings were withdrawn across the factors: port closures due to severe exchanges, shipping lines are obliged to second quarter, due to the fall in demand winter storms, industrial action and prioritise unloading full imports, and both driven by general closures in many some terminal upgrades, caused delays exports and empty container evacuations countries due to COVID. This forced the of up to three weeks in Port Botany are severely limited. Every ship that highest ever idling of container tonnage and to a lesser extent, in Melbourne arrives therefore exacerbates the in history. Up to 30 per cent of capacity and Brisbane. In Botany, volumes congestion, and while there are enough was removed from some routes, and in and ship call numbers were down in containers in the world, they are all in the March, the idle fleet was predicted to August and September (62 v 90 the wrong places. exceed 3 million TEU. The contraction previous year), with a large volume of Unfortunately, there is no end in sight, in demand for containerised cargo and cargo sent to Melbourne as vessels with the imbalance of imports over vessels continued throughout April, and bypassed Sydney. Increased imports exports expected to continue at least by May, the mood of the industry was and limited container exchanges as the until Chinese New Year in February. In very negative and the outlook bleak. terminals were desperately trying to AUSTRALIAN MARITIME & FISHERIESAustralia, ACADEMY with a bumper grain season restore window schedules, meant that Then the unexpected happened. just gone, there will be a shortfall of empty boxes and even some export Towards the end of May, a recoveryVisit in our website - www.amfa.edu.au - timetable/guides/eligibilityfood quality containers and a shortfall containers were left behind, adding to #RTO 0649 demand hit with a solid bounce. As of slots on ships to export them. the congestion in Sydney’s terminals countries emerged from their first wave Strategically, the only real solution is to and empty container parks. lockdowns and the northern hemisphere increase the productivity of Australia’s moved into the northern summer, A number of lines including MSC, container terminals, which have fallen to demand for goods surged. With OOCL and CMA-CGM/ANL have added embarrassing lows, but that will certainly limited international air travel, shipping sweeper vessels or extra loaders, in not be a short-term fix.
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Shipping Australia Limited I Annual Review 2020 17 STATE COMMITTEE REPORTS
New South Wales By MELWYN NORONHA, Secretary
Another year goes by at the helm of the Whilst crew change may be considered both seafarer COVID-19 cases and New South Wales State Committee and possible in Australia, the process undertaking crew changes. Following what a year this has been! Two matters continues to be frustrating and difficult. an increase in incoming crew testing have taken centre stage – COVID-19 On-signing crew must complete 14 days positive, MSQ amended its protocols to and industrial relation disruption on the of quarantine. In New South Wales, the require incoming seafarers to proceed waterfront. Thrown in the mix have been Department of Health is not proving to be to quarantine until COVID-19 test results a few weather incidents and together the useful – the 24 hour helpline now diverts are available, in order to prevent infection entire supply chain has been in a state of to New South Wales’s Fire Brigade. of a ship and allow contact tracing. continued disturbance. However, they do not answer messages. SAL continues to engage and liaise Bill Rizzi continues as the Committee’s Exemptions when approved, are often with Federal and State agencies to Chairman. In recognition of the issues granted at the last minute, which support its members solving day-to- identified with arriving vessels during causes great difficulties. Ships’ day crises, such as ships being allowed the COVID pandemic, the committee’s agents have raised concerns with SAL into ports, medical care for seafarers, membership now includes NSW Health. that officials repeatedly ask for more arranging visas for seafarers, and Federal Health have also been invited to information, much of which is provided providing endless information to the be part of the committee but are yet to on the exemption application form. The Government to encourage them to confirm their membership. process was described as convoluted make good decisions that support the and frustrating, and that is reflected in continuation of maritime trade. During the peak of the lockdown, the April the low volumes occurring. meeting was cancelled. SAL offices have SAL’s COVID-19 page on our website is had minimum manning with meetings held Exemptions are not being issued until being regularly updated with the relevant via video conferencing, the last of which there is a confirmed booking but often Federal and State restrictions as they was held on 9 December. when there is a confirmed booking, the come to hand, and SAL’s Secretariat officials often do not issue an exemption, continues to assist its members who may COVID-19 – seafarer access to and this causes loss of time and costs, have specific questions or circumstances medical health and crew changes especially when the ship sails. Further relating to crew changes and medical problems include the process being care for seafarers. Since March, the COVID-19 pandemic repeatedly changed, especially as the has continued to have operational maritime industry is not being advised of impacts on shipping worldwide. Transport for NSW’s (TfNSW) Empty changes and coping is difficult, stressful, Container Working Group In Australia, changing national, State and time-consuming. In 2019, TfNSW commissioned a and local polices and regulations In addition, AMSA has decided that study relating to the improvement in have impacted the shipping industry. arrangements under its Marine Notice the movement and utilisation of empty Whilst the Federal Government 04/2020 will be extended only until 28 containers into and out of Port Botany. has made the best efforts to February 2021, after which international maintain continuity of the maritime The report released in 2020, inter alia requirements, of no more than eleven supply chain the States’ (except acknowledged that dedicated empty continuous months on board, will be for Queensland) slow progress in container parks (ECPs) play a more applied. It has issued a new Marine developing medical and crew change significant role in Australia, compared Notice 10/2020 based on a view that protocols have severely hampered to many international ports. However, it there has been sufficient time for ship shipping movements. Advocacy was surprising to note that only two (4 operators to adjust to the COVID-19 and engagement with the three per cent) ECPs agreed to participate in world and develop new plans for seafarer levels of governance and keeping the study, in contrast to other consulted repatriation and crew changes. members informed has kept the SAL stakeholders in the container supply secretariat busy. Queensland continues to be the most chain. Further, the majority of the favourable State for responding to findings and recommendations raised,
18 Shipping Australia Limited I Annual Review 2020 intrinsically relate to ECPs which impact Trade fluctuations resulting from the container freight supply chain, from shipping lines operations. COVID-19 pandemic, weather events shipping lines to cargo owners, to assist and industrial action at stevedore in implementing practical, whole-of- One of the recommendations of the report terminals, impacted on the ability to supply chain solutions. was the establishment of a temporary service vessels and evacuate empty empty container working group to discuss containers. This created a significant and further explore the issues raised in Shipping channel service at Port of build-up of empty containers which the report. The first meeting of this group Newcastle – saga continues needed to be addressed urgently to was held in July 2020, with the objective of The case of the declaration of the developing practical solutions to improve ensure freight could continue to move shipping channel at the Port of the efficiency of empty container handling. in and out of Port Botany. The Working Newcastle as a service, has entered into Group focus was forced to look at short- its sixth year. Key objectives of the group are to: term initiatives that could take pressure This time, the NSW Minerals Council • Examine issues related to the off the system, such as increasing empty (NSWMC) made an application (July management of empty containers, container stacking heights at existing 2020) to the National Competition make recommendations, or develop facilities, and options for additional Council (NCC) for declaration of solutions which can be implemented storage capacity. certain services in relation to the Port by industry on a voluntary basis. Issues that continue to be highlighted of Newcastle (PNO), for a period of at • Share information and develop include: least twenty years, given the long-term performance measures to provide • ECP capacity and management nature of coal mines and significant an objective picture of supply chain capability, investment involved. issues. • Data Sharing and transparency, It will be recalled that in May 2015, • Identify opportunities for additional Glencore made a similar application empty container storage capacity • Better utilisation of the direct return to the NCC seeking a declaration, and and investigate other ideas, such pool at terminals, after some initial success (June 2016) as targeted trials of new equipment in getting the channel declared as a • Redirections and possible causes, or technology which could reduce service, PNO Newcastle successfully pressure on empty container parks. • Time slot bookings at ECPs by obtained a revocation of the declaration transport operators. in July 2019. However, following the first few meetings, events increased stress The Working Group will continue to NSWMC’s application drew attention to on the empty container supply chain. engage with stakeholders across the the inadequacy of New South Wales’
Rod Nairn makes his final address as CEO SAL at the New South Wales’ State Committee Christmas Luncheon
Shipping Australia Limited I Annual Review 2020 19 price monitoring scheme under Part 6 of Navigation Service Charge – double these details from TfNSW, but no the Ports and Maritime Administration charging: Update response has been received. Act 1995 (NSW) (PMAA). This Part Last year, the Port Authority of New The Minister’s response also stated does not limit the charges that may be South Wales adopted a new approach that the Port Authority of New levied by PNO for the purpose of setting in the application of the navigation South Wales had negotiated an navigation service charges, as defined service charge, with the result that ‘industry-agreed arrangement‘ on the in section 47 of the PMAA. The current some ships that are required to leave application of the navigation service price monitoring scheme has not been the port limits for operational reasons charge exemption for vessels that certified as effective, and no application and return, are charged twice. This make multiple entries to Sydney for certification has been proposed by new practice reverses a long-standing ports, which would be beneficial to all the New South Wales Government to pricing policy and results in an relevant vessels. After canvassing its make it effective. This was one the additional charge of an average of members, SAL confirmed that none of key elements of Shipping Australia’s $60,000 per vessel. its shipping line members and agents submission to the NCC in 2015. Shipping Australia has appealed, via were involved in any consultation or PNO remains an unregulated submissions and letters, to the various industry-agreed agreement. monopolist that is able determine relevant authorities, including the Shipping Australia has conveyed further the terms and conditions of its portfolio Minister, seeking an amendment concerns to TfNSW seeking details of access, with little constraint. This to the existing legislation, so that the this industry-agreed agreement, and is was evident earlier this year when longstanding, sensible and fair practice – yet to receive a response. PNO, at short notice, announced of charging just once – becomes law. that an increase would apply in the Coal Ship Navigation Service Fees In August, the portfolio Minister Functions by 33 per cent from 1 January 2020, responded to Shipping Australia’s The COVID-19 pandemic severely unless the Port User signs a 10 year correspondence advising that TfNSW, hindered the committee’s ability to hold deed which waives the right to object who have for some time been reviewing its customary Parliamentary Luncheons to matters within the deed, and the Ports and Maritime Administration and the Biennial Port Kembla Luncheon. specifically accepts certain conditions, Regulation 2012, are expected to However, with the easing of some including an annual increase of 4 per commence public consultation on the restrictions towards the end of the year, the cent on both navigation services and proposed changes to the Regulation in committee was able to hold our signature wharfage, as well as an unknown the coming months. event – the SAL’s New South Wales State additional amount attributable to The Minister’s correspondence also Committee Christmas Luncheon. PNO’s capital investment. reflected that concerns previously This luncheon was held at the same In October, the Council published a raised by Shipping Australia about venue as last year - Hyatt Regency’s draft recommendation to NSWMC’s navigation service charge exemptions Maritime Ballroom. With guest numbers application for the designated Minister have been considered - though no restricted at the venue, the event was not to declare the services at the details were provided. SAL has sought limited to just over 200 guests. Port of Newcastle. History of this issue suggests that the Council’s final recommendation will be consistent with its draft recommendation, and that the Young Shipping Australia matter will be further contested at the Young Shipping Australia continues to thrive despite the difficult year faced Australian Competition Tribunal. by all. We have not been able to hold our usual ship tours, shipping outlook event and networking breakfast, but we were pleased to round the year off Glencore Coal Assets Australia Pty with a well-attended Christmas gathering at Helm Bar Darling Harbour, which Ltd v Australian Competition Tribunal seems to be the unofficial HQ of the young blood of Australian Shipping. [2020] FCAFC 145 Those attending shared stories of both lockdown and market resilience, Late last year, Glencore appealed and it seems that our shipping industry is weathering the storm reasonably the Australian Competition Tribunal’s well. Young Shipping Australia provides an invaluable network for the young revocation ruling, lodging an appeal in people that drive our industry forward, and we look forward to welcoming old the Federal Court. friends and new members alike, in 2021. In August, the Full Court of the Federal Court of Australia published its decision, setting aside the Australian Competition Tribunal’s (Tribunal) re-arbitration of the ACCC’s 30 October 2019 determination in respect of the access dispute between Glencore Coal Assets Australia Pty Ltd and Port of Newcastle Operations Pty Ltd. The Court found that the Tribunal had misconstrued the terms of the declared Service and erred in law by allowing the Port of Newcastle to include the cost of user funded assets in the regulatory asset base, in setting its navigation service charge. The Court Young Shipping Australia members at the Helm (Bar) has remitted the matter to the Tribunal for further determination according to law.
20 Shipping Australia Limited I Annual Review 2020 STATE COMMITTEE REPORTS
Queensland By GEOFF DALGLIESH, Secretary
When I look back to this same time last Some good news came about during the looking after these operations. year when writing the 2019 Report, never year, of the completion of the new Cruise A long, now seemingly forgotten, issue did I think we would have a year ahead Terminal, so it is shovel ready for when of reduction in CO2 emissions and of us like it has been. the cruise business starts up again. the costs of this for carriers, has been Suffice to say COVID-19 had the Townsville, being the States’ other pushed into the background over the same effect on all of us, with differing major container port, vehicle units along past nine months. It does appear consequences by State, by person, by with bulk tonnage had similar results though that it has been an issue that employment and many other area’s in to Brisbane. Containers down by 16 ship owners and charterers have handled our daily lives. One positive I would per cent on imports, and exports down quite well. think, is that we appear to be on the right approximately 22 per cent. Motor During the year, the Queensland State end of this pandemic now and closer to vehicles were down 9 per cent on the Government set up a task force to look at the end than the start. previous year. On the plus side, live the feasibility of a coastal service, initially cattle exports were up 32 per cent, which Our SAL yearly Golf Day and Annual Ball between Brisbane and Townsville. That was a very positive note. Again, on the task force recently submitted a report had to be cancelled because of these plus side, were commodities such as circumstances. Which meant little monies based on their findings. Of note though, the sugar, mineral concentrates and fertiliser, Labour Party did float an election promise to support our usual maritime charities, all up over the previous year. namely the Mission to Seafarers and Stella that should they be returned to office then coastal shipping would be looked at as a Maris. In a way, that may have been a Major infrastructure continues with the priority. The previous State Government did blessing as most business’s and sponsors channel widening, which is planned get back into office, and now it remains to be were hurting and just did not have the to be finished by 2023, after years in seen whether they will indeed, progress on surplus to be able to give. the making. This venture will ensure that Townsville will be a vital part of the the recent Coastal Shipping Report. As the year has been a rather traumatic Northern Queensland region, allowing There has been over this year some issues one, we are looking at holding an end longer and wider vessels into the port. with QSHIPS utilisation at varying levels of year luncheon (at time of writing). At by users. Hence, we set up a committee least then we have something for the Other bulk ports along the Queensland coast have appeared to fare better so far to determine how we could develop the maritime industry to celebrate - we have process of getting users to utilise QSHIPS made it through the year and can look through this pandemic and we hope this continues. at similar levels. Although this committee forward to a better one in 2021. has taken a back seat during the last six Port statistics for BPPL were as expected International carriers have carried out months, I have to thank MSQ for their down somewhat, due to COVID. The top numerous blank sailings for most of this support in this regard, offering retraining if two import countries by origin were China year, or at least since COVID-19 grew required and making some amendments and Malaysia, and the major product legs. This resulted in less space and even though they had another major imported was crude oil and refined oil. The the filling of fewer ships closer to their programme to complete. I also thank the capacity. Resulting in the supply and top two export countries by destination people that gave their time freely to attend demand factor allowing for increased were Japan and China. The top two meetings and sit on the committee. I do freight rate levels. exports by product were coal and meat promise in the new year to push this barrow further until all users are on the same page products. The ports tonnage was down The pandemic also caused numerous and utilising QSHIPS as it should be used. 7.6 per cent. Motor vehicle imports were issues with crew changes or lack of, down 22 per cent on financial year 2019 with very few international flights being Finally, I would like to thank everyone for volumes. The port continues to support allowed into the country, and when they their input over the year and of course, the last mile infrastructure project for a rail did they mostly went via Melbourne wishing you a very safe and happy link to the port from the inland rails current and Sydney, causing a lot of grief in festive season and our hope of having a termination point. Queensland ports and for the agencies much better 2021.
Shipping Australia Limited I Annual Review 2020 21 STATE COMMITTEE REPORTS
specifically the multiple agreements which had expired pointed to a co-ordinated approach to exert maximum disruption. It was hard to fathom the rationale within the MUA particularly during a pandemic, which of itself was causing much hardship and damage across the community. This relatively privileged group of workers with above average earnings, demonstrated little to no concern to the community at large, and clearly remains burdened by 20th century Victoria industrial thinking. As they pressed their By CHARLES MASTERS, cause, vessels bypassed affected ports Secretary and discharged cargo at the nearest open port, applying surcharges to cover costs. Importers were required to collect their cargo at their expense. In the end, the Planning for quarterly meetings Whilst we managed to have our 1Q MUA punished the Australian community and events was well in hand at the meeting in March we were not so lucky in pursuit of self-interest. McKinseys commencement of the year and so with the annual Phil Kelly OAM Perpetual latest assessment is that 473 million Golf Tournament scheduled for 18 this State Secretary took the summer jobs globally will be imminently replaced March, cancelled 12 hours ahead of tee break to read a book gifted by my by automation. Rising labour costs off due to Covid 19. Chairman, Rod son, namely ‘21 Lessons for the 21st exacerbates the move to replace people. Begley, resigned as SAL Chair to take up Century’ written by Professor Yusef. Will the MUA continue to be dogged by a COO appointment within PNG Ports The book considered the convergence 20th Century industrial thinking? of developments in biomedicine and and pleasingly his deputy, James Kurz, artificial intelligence and the impact took up those responsibilities. A new To finish off the year, the privatised Port on governments as we know it, and deputy chair will be appointed at the of Melbourne produced a document to the challenges to preserve what we Victorian AGM. rebalance its tariffs. The issue being the understand today. In short, technology projected number of larger vessels calling The 2Q meeting, a luncheon with the at the port, requiring capital expenditure to has already impacted the various Australian Competition regulator (ACCC) improve access. With 20 million spent to models of government. Of significance, and a breakfast event in August with date on study’s, enlarging Swanson Docks a section early in the book anticipated Qube’s CEO Maurice James were all turning basin, strengthening bollards, pandemics and how this would impact cancelled due to the Stage 4 lockdown plans to lengthen Webb Docks berth face, our lives. Little did I consider how conditions in Melbourne. relocating Tasmanian and RoRo activity relevant that portion of the book would Meanwhile Freight Victoria offered to Appleton Dock are developments be when I completed it at the end of the opportunity to provide input to supported by SAL. Whilst questions January! a review of the structures governing remain around some of the arithmetic The Port of Melbourne held a ministerial ports in Victoria. The last review was applied, the result will be an increase briefing at the end of January which conducted 20 years ago and much has to import wharfage on vessels over 300 assembled key actors across the changed since that time. The role out metre length or 40 metre beam, and a port. Highlighting the planned of Blockchain is much anticipated and small offset applied to export wharfage. infrastructure spend, specifically on we expect the business community The differentiated pricing is designed to rail to reduce truck movements within to be more familiar with its benefits, remain compliant within CPI increases for 2021 but the unsung issue is to know what the precinct of the city. Deloitte’s were particularly as and when the Australian importer knows or is interested to learn, additionally engaged to identify all Stock Exchange rolls out its platform in the size of vessel their cargo is finally costs associated with the movement 2021. We also consider transparency moved on? of freight. Interestingly, the report over transaction costs will be evident highlighted ocean freight had increased when blockchain ledgers are applied in On a more upbeat note, it would be remiss by just six per cent over the decade, the shipping viz logistics environment. not to report the commercial initiative whereas land-based charges had risen On this front we have seen little to taken by Port Phillips Sea Pilots during disproportionately. A representative of no information around IBM Tradelens the year, where they provided a 10 per a local transport association decided progress. Moreover, if carriers booking cent rebate on their services subject to despite the clarity of Deloitte’s message portal INTTRA is to be assimilated. The payment terms being met. only development we note is VICT parent to take aim at shipping lines for land- With no EOY lunch to celebrate, we look based costs experienced. The result ICTSI with 31 terminals globally has signed onto Tradelens! forward to 2021 wherein a vaccine will is that the Minister for Ports and allow for face-to-face interaction and at Infrastructure is acutely aware of how The 3Q State Committee was held the least, a game of golf. Season’s best many local charges are promulgated via “Zoom” in August. Concerns wishes to all. by third party providers with applied around stevedore negotiations with the administration fees. Maritime Union were expressed, and
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Shipping Australia Limited I Annual Review 2020 23 RETROSPECTIVE
Half a century of change
By KEN FITZPATRICK, former Chairman and Director, Shipping Australia Limited
Those of us who can look back half and stowed them in the ship. It was hard were all steamers. Steam ships were a century are looking into a world far work, but they were the lucky ones to get not uncommon in those days, the most different from the one we live in today. the job for the day. The others had to go welcome of which in Fremantle was The pace of change is now so fast for home or try elsewhere for casual work Howard Smith’s SS Balarr, which made most people it is hard to keep up to date for the day. regular calls from Queensland carrying, with events. among other general cargo, bags of By the time I actually got to start work peanuts. Needless to say, there was So when I was asked to consider what in the industry in 1967, bulk grain always ullage from the hessians peanut changes I have seen take place in was loaded in bulk carriers, monster bags, and for days after her arrival, shipping over the past 50 years, my ships at that time of 30/50,000 tons peanut shells could be seen all over the recollections of how things used to be, deadweight. That was the era when wharf area at Victoria Quay. next to today, makes it feel as though container shipping had just started, with one is entering a totally different world. the Kooringa plying the trade between The pioneering trade of container My earliest recollections of shipping were Eastern and Western Australia. Western shipping in Australia grew quickly in Fremantle as a boy, and of men lining Australia had its own fleet of six ships within the country, with cellular ships up early in the morning to be picked to trading to the northwest of the State Kanimbla and Manoora taking up work on the wharves for the day. The and into Darwin, from Fremantle and the coastal trade in 1969. This was successful ones got to heave heavy return. The only exception was the closely mirrored by the international bags of grain off rail trucks and hurl Koolama, which went east after Darwin container fleet from the UK and Europe, them into slings, which were then lifted and completed a round Australia trade, commencing with P&O’s Encounter into the ship using the ships’ three to taking all kinds of cargo, including 12 Bay arriving in Fremantle on her maiden five ton union purchase derricks. Inside passengers. Koolama was one of the voyage in March 1969, followed by the the hold of the two or three deck ship, three K class motor vessels, whereas ACT fleet of ACTA Shipping. These workers took the bags out of the slings the older D class ships like SS Dorrigo fully containerised ships of a nominal
Car carriers at MIRRAT Melbourne Terminal
24 Shipping Australia Limited I Annual Review 2020 capacity of some 13/1500 TEU saw the promptly sank in the shipping channel. transit the Suez Canal. In the ore trades, end of conventional liner ships carrying Some of these old liner ships went ships grew larger as well, governed general cargo. Lines like Shaw Saville, into unusual trades, being engaged as mainly by port restrictions at discharging Port Line, Blue Funnel, Bank Line etc., lighters from larger bulk carriers loaded ports, and generally maxed out at about all disappeared from service. Port times with grain in draft restricted ports in 250,000 tons. However, Brazilian mining were reduced from up to a week to places like India and Bangladesh. giant Vale, in an attempt to compete with just a couple of days, with the efficient Australian iron ore, and taking advantage The other change taking place, handling of cargo in containers. The next of the expanded Panama Canal, built after container ships became the development was advent of the roll-on two series of some 67 ore carriers of accepted liner vessels for general roll-off tonnage, carrying both trailer and 400,000 tons deadweight. So, from the cargo movement, was the emergence container cargo, the first PAD vessel day I started in shipping, where a large of breakbulk shipping in the form of arriving in Australia in 1971. From there ship was a 60,000 tonner, things have multipurpose ships that could handle the progression has been simply towards really moved along to the ships of today, both containers and general cargo, and bigger, more efficient container ships, both in terms of size and sophistication. handle large, oversize and heavy cargo where capacity is now reaching up to During that time, steam propulsion was that did not fit into containers. The 25,000 TEUs. phased out except for a short period Freedom class and SD14 became the in the 1980s, where steam made a brief In the meantime, the general cargo early workhorses in non-containerised comeback. Engine efficiency has also trades specialised. Refrigerated cargo, general cargo movement, often in short been constantly on the improve, with ships once carried in reefer chambers in sea trades, especially in Asia and Africa. burning fuel more efficiently in the face of conventional three and four deckers, The demand for moving heavy pieces, increasing costs of fuel, and more recently now started to trade in purpose-built previously handled by a heavy derrick in the face of environmental concerns. refrigerated (reefer) vessels, carrying all on the old liners, not only continued but Some ships are now powered by LNG, and kinds of produce from meats to fruits increased. Breakbulk and multipurpose even sail has been tested again to improve like bananas and grapes, requiring ships started small, as did container efficiency and save fuel costs. temperature control in increasing global vessels, in the range of 3000 to 8000 seasonal trading patterns. Global deadweight but slowly have increased The evolution of ships is not the only trade as we knew it, was undertaking to ships that are now over 30,000 DWT. significant change in half a century. a major change, allowing people who The crane capacity has also radically There has been a huge improvement in only saw table grapes on their plate in increased from the standard 100 ton the way the whole industry operates. summer, to now get their favourite fruit single swinging derricks to 4/500 ton Safety has become a key feature of 12 months a year. The same applied for cranes these days. this change, in all facets of the industry all kinds of fruits and vegetables. The from the International to the local port. Globalisation brought with it the reefer trade flourished from the 70’s Gone are the days when wearing a opportunity to reduce manufacturing right through until after the turn of the safety helmet on the wharf was met costs, allowing project engineers to century, however the lure of container with ridicule, as it was in the late ‘60’s. fabricate larger and heavier pieces of shipping to the fresh produce trade, with Protective clothing is now accepted equipment destined for construction of the promise of a secure cold logistics throughout the industry, and the lowered major projects. Australia took advantage chain, has now substantially swallowed death and injury list is evidence of the of these developments at many of the oil trade from the conventional reefers. The success of these changes. There are and gas and mining plants constructed combination of being able to purchase still some ports in the world where around the country. Eventually the smaller quantities at a time coupled with safety needs improvement but, overall, industry developed a more sophisticated cheaper freights, swung many shippers it is a much safer industry in which to response to this opportunity, building over to containers. Having retired out of work than it was. Security is the next flat-decked roll-on roll-off, often semi- the conventional cargo operations, the area where there has been a significant submersible, vessels that looked like a older liners were employed in carrying difference. No longer can the public very large barge. Expansion of oil and various other general cargoes, many of wander down to wharves on a Sunday gas exploration saw large fully and semi- them becoming engaged in the booming afternoon around the country and have submersible ships moving oil rigs around cement trade of the 1970s. Heavy a look at the ships in port. Getting the globe on demand. The oil industry demand for cement in the Middle East access to a wharf area, and on to a ship itself opted for crude oil to be carried in and West Africa saw ships waiting at in port, is now something that nobody even larger ships, with tanker sizes rising destination for six months and more. can do without appropriate passes, site to a massive 500,000 deadweight ton Many of these ships waiting for a berth induction and a valid business reason to Ultra Large Crude Carriers (ULCC) in the in West Africa saw their cargoes solidify do so. Even then, with the appropriate 1980s. The lack of ports able to take with the heat and humidity of the area. It PPE you can only walk along secure such monsters and fears for the potential kept lots of these older ships employed areas, not wander around at will as used hazards of a ULCC accident has seen during a decade of heavy project to happen. Changes were driven by crude carrier sizes reduced to Very Large construction in both regions. I recall one increased automation of the industry, Crude Carriers (VLCC), in sizes ranging 1951-built ship I chartered, having been increased activity on wharves, and a from 180,000 to 320,000 deadweight. loaded with bagged cement from Korea, history of people walking around the Suezmax tankers of 120/200,000 waiting for six months to get a berth at wrong corner at the wrong time to risk deadweight were designed specifically to Dammam, then on being called into port being collected by a forklift.
Shipping Australia Limited I Annual Review 2020 25 Telex machines were key communication tools 50 years ago Image: home.bt.com
On the international scale, safety has regime has also ensured ships now via cable, and hence economy of words been heavily backed by international meet safety standards. I recall as was an imperative. Cables were charged agreement, through UN backed a young agent waiting for a ship to by the word so the industry managed organisations like the IMO. The safety complete berthing and looking up at to reduce words by using now well- rules apply also to seafarers where the accommodation and seeing the sky known abbreviations like ‘satpmshexuu’ work practices have changed to protect through one of the lifeboats. I knew which simply meant Saturday afternoon the seafarer, and also the environment. this was going to be a tough day, as Sunday and holidays excluded unless The International Convention for the the State Government Marine Inspector used, or ‘danrsaoclonl’ – discountless Safety of Life at Sea (SOLAS) 1974 (pre AMSA) turned apoplectic when he and no-returnable ship and or cargo set the protocol for the many changes too looked up to spot the holes in one lost or not lost. There were many other and improvements to SOLAS since of the lifeboats. The ship got a repair abbreviations, some not so polite! then, addressing key issues like order about a metre long and spent Talking of communications, I had carriage of certain cargoes, such as an extra ten days in port. Few owners the privilege of working on the Baltic dangerous goods and bulk cargoes, would take such a risk these days. Exchange in the early 1970s. This whose properties can in certain Communication is probably the greatest ‘coffee house’ was the centre of the conditions act like it was a liquid in change I have seen in the industry. Ask world in terms of shipbroking, during the ship. Lifesaving equipment at sea, someone under 30 what a telex is and this period. It was a place where safe navigation and safe practices on you get a blank stare. Yet telex and information was the centrepiece of board ship were introduced through cable were the key tools we had at our its operation. News of cargoes, ship the International Safety Management disposal 50 years ago. Even copying fixtures, commodity prices and any (ISM) Code. Other conventions like documents was a messy process using, trade news that might affect the freight MARPOL, prompted by the famous initially a Fordigraph, then a Roneo market could be found within an hour or Torrey Canyon disaster, where 120,00 machine; we had no such luxury as a two of walking the floor. A ship sinking, tons of oil spilt into the sea off the photocopier. Preparation of documents a coup in an African country, a shock coast of Cornwall in 1967, address was an equally messy problem with drop in the stock market, were all hot pollution of the seas. First introduced Bills of Lading usually requiring at least gossip on the floor on any day. The in 1978, the STCW Convention set new three originals and three copies, all Baltic was established in 1744 as a standards for training of seafarers, with squeezed into a typewriter, with copy coffee house (originally called the Virginia regular amendments upgrading these paper in between the sheets. It was a and Baltick Coffee House), as a place provisions. The recently introduced nightmare making a mistake, requiring where merchants and sea captains met Maritime Labour Convention (MLC) the dreaded white out fluid having to be to discuss the mercantile matters of the set new standards in crew wages and applied to six copies, or if the mistake day. From about 1893, traders started living conditions on board. was bad enough having to load it all up to frequent the coffee house, grain Higher standards for ships under and start again. Our communications traders being prominent. By 1891 the the Port State Control Inspection with places like China and India were all London Shipping Exchange was formally
26 Shipping Australia Limited I Annual Review 2020 years, and heavy competition has forced mergers of many lines, both in container and in other trades. Automation has been a key change on the waterfront, with many operations, particularly at container terminals, now managed by robotics. The use of fully automated ships and pilotage will be one of the future challenges, although much work has already been completed in this space. One day, future generations will ask ‘did they really have people on board ships, steering them?’ with the same Baltic Exchange, London, following incredulity the under 30 of today asks the IRA bombing in 1992 Image: Gulf News Archives what a telex was. When asked if I would spend my time in established, and in 1898 the London regular, many ports still have peaks and shipping again, I quickly answer in the Shipping Exchange merged with the troughs in terms of work, and therefore affirmative. For anyone looking for a Baltick (sic), moving into its longterm there will always be a need for some regulated, orderly working life, shipping location in St Mary Axe in London. The casual employment. is not the right profession. The constant Baltic Mercantile & Shipping Exchange challenges, regular surprises and journey Anyone in the industry around the turn Limited was incorporated in 1903. It often into the unknown, makes life in this of the century will remember the events traded as the major shipping hub for industry exciting. The best planning in of 1998, with the Patrick waterfront decades, a place where cargoes were the world cannot prevent things going dispute. Whilst it was a bloody dispute matched with ships on the floor of the off the rails. However, once hooked at the time, the benefits of the waterfront exchange, often seeing trades concluded into shipping most people stay in the becoming a 24/7 operation have had within just a few hours. I will never forget industry. It is probably, outside the a major impact on efficiency on our my first fixture of 30,000 tons of wheat medical profession, one of the industries wharves. It was pleasing to see an end from Sydney to Beirut in 1971, on a boasting the highest employee retention. to the days where wharves shut down vessel called the Pan. The ship, in those In an age where people often change from noon Saturday until 7am Monday, days, had to go the long way around professions three or four times during as ships sat idle. via the Cape of Good Hope during their lifetime, it is rare to find people who the Suez Canal closure (1967-1975). The number of Lines operating into remain in the same industry for half a Unfortunately, on 10 April 1992, an IRA Australia have changed radically over the century and more. bomb planted in the street outside the Baltic saw it damaged beyond repair. The historic building was no more, and the exchange moved a few doors down in St Mary Axe. The site of the old Baltic is now one of the most recognisable buildings in the city end of London, known affectionately as “the Gherkin”. Communications by then had moved on, and the value of the coffee house meeting place diminished, as centres like Hamburg, New York and, more recently Singapore, became the hub of shipping activity. Instant communication via the internet, with instant access to information, has also changed the world of shipbroker since the days of waiting for a cable reply three days later to an offer made. Life at ports has changed radically in that half century period. The old system of the morning pick up (a practice well documented in Sydney’s Hungry Mile) has turned into a system of full-time and casual employment on the waterfront. Automated Patrick Terminal Although ship calls are much more
Shipping Australia Limited I Annual Review 2020 27 SAL VOTING MEMBERS
28 Shipping Australia Limited I Annual Review 2020 SAL VOTING MEMBER UPDATES BBC Chartering Australia
Heavy Lift/Project shipping: Flexible/versatile is what we do, not just in 2020
By ULRICH ULRICHS, Chief Executive Officer, BBC Chartering GmbH & Co. KG
Ocean shipping is one of the oldest Cross River Rail and Sydney Metro), Looking ahead the Heavy Lift/Project trades in the world, and we have always major mining sites in Western Australia market is quite sporadic nowadays. needed to adapt to new circumstances (wood/albermarle), windfarm projects It has brought a lot of delays to the and requirements. 2020 has no doubt all over Australia. supply chains due to a range of issues, been a challenging year for every mainly factory closures, transportation As a global company, BBC Chartering individual and every industry, in almost to and from the ports, and movement reacted promptly to setup measures every aspect. of personnel to and from the job for their employees working remotely, sites. But most projects have simply The new year kicked off with IMO and invested globally in communication been placed on hold due to current 2020 and nobody knew if enough spec technologies as the crisis developed challenges. The outlook for the near compliant fuel would be available. There into a global pandemic. Mauro Capano, future is relatively uncertain. were many rumors regarding potential managing director in Australia, has said failures and problems with the new fuel, that “In Brisbane we got lucky compared Another factor is the oil price. A with the majority not eventuating. to other parts of the world, lockdown recovery of the oil prices will hopefully only lasted 3 months. During this period give more confidence to the oil and gas Even pre-COVID, cargo movements we were able to continue servicing our segment to place new investments at were frequently delayed, and our clientele without missing a beat, same some point, translating into cargoes industry has always had to adapt with has continued beyond the lockdown – for our ships. We’ve previously seen a ad hoc decisions and changes. While We have been busy throughout!’. time delay of about three to six months spot markets can mean a day-to-day between recovery of main economic challenge, they also come with numerous Beyond Australia, Asia is an incredibly KPIs and movement of real cargoes. opportunities. The Heavy Lift/Project important market to our sector and We are optimistic to see steady market sector has the capacity to quickly adapt Lars Schoennemann, our regional improvements in the later part of 2021. to evolving demands and temporary managing director based in Singapore, geographic shifts in trade lanes. has said, “We all rose to the challenge If 2020 has shown anything, it is that the and it has been really good to see that world may stand still, but it is essential Once COVID-19 peaked, Australian our staff quickly adjusted to the new for all economies that commercial ships ports stayed open for business, and circumstances, and that we as a team are not kept from sailing and delivering whilst government regulations can be pushed through. But not only that, our cargo. The Heavy Lift/Project sector is challenging at the best of times, the clients and service providers showed a niche market and we have shown that reaction to the COVID-19 threat was that the relationships that are built, we stay flexible. swift, practical and kept our industry especially in the Heavy Lift/Project open for business, whilst safeguarding Relying on highly experienced technical, market, are built to last – even through a the health of all maritime workers. This operational and commercial teams, we global pandemic”. allowed the major infrastructure and use our strengths and explore every mining projects that are planned and opportunity given to us. This allows us to approved years in advance to continue Communication remains key not only continue to provide the quality being built, especially for projects that As the virus persists and the dreaded and service our clients are accustomed had already begun - the wheels on ‘new normal’ takes hold, we and every to, but to innovate and grow. already started projects are almost other carrier have faced operational impossible to delay or even come to issues. Major factors were mainly a halt. Throughout the pandemic our cargo readiness, travel restrictions and versatile multi-purpose ships delivered quarantine regimes in some places. essential cargoes for industries such Overall however, the issues remain at a as infrastructure projects (Brisbane manageable level.
Shipping Australia Limited I Annual Review 2020 29 SAL VOTING MEMBER UPDATES CMA/CGM - ANL Container Line
Oceania brand rationalisation programme and leadership changes
By XAVIER EIGLIER, Chief Executive Officer, ANL
Some 18 months ago, the CMA CGM team in Australia, which gives the port omissions, cargo transhipment and Group started a programme to simplify organisation powerful local capabilities. change of vessel rotations. the various shipping line brands The effect of this disruption is felt right operating across various parts of the Proactivity in the face of challenges down the supply chain with not only extra world. This was done in a staged While we always work closely with our costs but also disruption and delays to approach which saw some brands industry partners, this year was cause goods. When one part of the supply retired from particular markets and some to see this from a different perspective. chain, like the container terminals, is not brands having their scope expanded. After seeing containers fall overboard working then the whole chain breaks This has been very positive for ANL, from the APL England we knew that down. We saw this with gridlock in the now being recognised as the CMA CGM proactivity and a strong network was of empty container depots in Sydney as Group’s leading carrier for Oceania. This the utmost importance. Within hours the evacuation of empty containers was was a real vote of confidence in our of debris washing up on New South impeded by the problems in the terminals. local management team and the strong Wales beaches we were able to deploy agency network across the region. Experiencing disruption like this is not clean-up crews, working in step with sustainable in the long-term, not just for ANL’s long history brings with it strong the RMS, to complete daily checks at shipping lines but for the whole Australia market knowledge coupled with 40 different sites. This work is still active economy. Especially an economy already quick decision making, all focused and will continue until the job is done. On reeling from the Covid19 downturn. on providing the best service to the vessel side, the teams at the Port of our customers. We work hard to Brisbane, as well as MSQ and the Mission understand our customers’ needs now to Sea Farers all pitched in to ensure both Navigating through the global and into the future, so as to adapt our the vessel discharge operations and the pandemic internally offer. This is a continual process as crew needs were tended to as safely and While managing the effects of the global container shipping and ANL evolves, professionally as possible. pandemic, our teams have demonstrated we see changes like new routes, new great success in working from home. We have a strong working relationship port calls, innovative digital tools and However, during this time, it has been with AMSA, now more than ever, and expanded value-added services. brought to the forefront that life in have worked with them on a number the office is being transformed. As Recently leadership changes have also of items. We will continue to work with workplace flexibility has certainly shown been announced. I will move from them to ensure our fleet continues to some benefit, office spaces create an my current position as Chief Executive comply with all Australian and Oceania environment for meaningful connections, Officer for ANL, to the new role as region standards, through proactive effective collaboration, problem solving Executive Vice President to drive a new measures. Furthermore, we will and innovation – an environment that third air freight logistics business pillar, continue to communicate with them cannot always be replicated online. beginning 2021, based in the CMA on our extensive search operations for CGM Head Office in Marseille. - Current containers overboard that are possibly In saying this, the purpose of the office Managing Director of CMA CGM Group situated on the sea floor. has also changed. As we move forward Agencies (Oceania), Shane Walden has into the new year, ANL will look to been newly appointed as the CEO of Waterfront disputes – counting provide employees with an inspiring ANL. Fulfilling Mr Walden’s current the cost atmosphere that will encourage the role, existing Vice President for Business share of knowledge and strengthen ANL, like all shipping lines, has been Development (CMA CGM & CEVA relationships with both customers and seriously impacted by the industrial actions Logistics), Paul Haeri will lead the CMA colleagues. It will be a hub dedicated in Sydney. Some vessels have faced wait CGM Agency cluster across Australia, to creativity and innovation. The future times for berth up to 15 days. There is not New Zealand, Papua New Guinea, Timor of the office will undoubtedly be better only the significant extra cost of the vessel L’este, Papeete and New Caledonia. balanced, but also provide a better to consider but also massive costs for ANL is maintaining a strong leadership sense of purpose.
30 Shipping Australia Limited I Annual Review 2020 Navigating through the pandemic as ANL – always moving forward Additionally, the group has committed to an industry ANL is always looking for development the goal of becoming carbon neutral by The industry has seen myriad impacts opportunities to improve our network 2050. Some of these actions included throughout the supply chain. The and enhance our service to customers. the decision to not use the Northern Sea lockdowns, shift in demand cycles, Apart from main trade lane expansion Route, as it presents significant danger change in cargo mix and balancing we are also growing our presence in to the natural ecosystems, as well as of important health regulations have the Pacific Islands, on the back of the launch of an LNG powered fleet of caused vessel delays, port omissions our purchase of Sofrana a few years vessels. This began with the launch of and deviations, overall, these factors back. Regional ports around Australia the CMA CGM Jacques Saade: a world impacted general schedule reliability are a particular focus for us. Ports first LNG powered 23,000 TEU container which in turn created issues for our like Townsville and Darwin and, more vessel, which will reduce GHG emissions clients and theirs. recently, Esperance and Port Hedland by up to 23 per cent well to wake. have been added to the ANL/CMA CGM Port Regulations in Australia are not ANL also launched a set of initiatives network. We are very excited by our new national and the disharmony between the dedicated to Oceania. Over the coming Pilbara Connection, as this region shows different ports create a lot of additional months, the local committee will look continued growth and would benefit requirements to balance vessel, crew to roll out a number of projects. The greatly from a direct shipping service and customer needs. While the industry programme includes the creation of with Asia. In all these ports we offer a has rallied together, the pandemic a Reconciliation Action Plan (RAP), personal approach, while also bringing showed us that we need to develop creation of a coral regeneration fund the power of our global network for not together and collaborate to ensure the designed to support long-term research only containers but also project cargo for continued strength of our space. and short-,term conservation initiatives infrastructure projects, oil and gas, plus for the Great Barrier Reef as well as an In a time where it is very challenging to mining developments. educational and art-based programme to manage crew change over, we have done raise awareness of sustainable shipping our best, with the support of various Sustainability in Oceania practises while celebrating the cultural authorities, to support our team at sea As part of our collective focus on diversity throughout the Oceania region. but the situation is still unsettled. The innovation, the CMA CGM Group also Actions relating to the 2050 carbon transport of goods is essential, and the launched a sustainability programme neutrality goal are also in the pipeline, people who we rely on to do this at sea aimed to capitalise on the three key with a biofuel trial and zero emission must be considered essential workers in pillars of: acting for the people, the feeder vessel soon to be announced. international trade. planet and for responsible trade.
Shipping Australia Limited I Annual Review 2020 31 SAL VOTING MEMBER UPDATES A.P. Moller-Maersk
Building resilient supply chains through collaboration and digitalisation
By HENRIK JENSEN, Managing Director, Maersk Oceania
As we farewell 2020, there can be no At Maersk we have worked hard to be To proactively manage any changes doubt that the year will be remembered agile in our response to the changing to the normal flows of equipment, for the sudden and devastating market conditions. Our main focus has Maersk has developed a series of appearance of Covid-19. The virus has been, and continues to be, linking ocean landside solutions to help customers dramatically affected almost all corners and landside services and providing navigate through uncertain times such of the world, causing humanitarian customers with additional, innovative as port strikes, vessel port omissions and economic crisis with extraordinary solutions that allow them to face any and lockdowns. Maersk Connect has consequences across communities and unexpected challenges, take corrective been designed to support customers industries. action and prevent a full-force hit. with deconsolidation, linehaul and rail services to safeguard the delivery of their Starting in China, the effect on Reefer storage products in Australia and products to market. product supply chains was first not as New Zealand, as well storage solutions pronounced, as it coincided with the whilst in transit have assisted Maersk When disruption strikes, it is not annual shut down of production for customers with their critical cold chain uncommon for a logistics professional to Chinese New Year. However, as the exports in conditions where markets find that vital information is not available. virus spread in China and later overseas, were open and closed quickly. Reefer Companies that struggle with visibility market after market went into complete storage solutions requiring the constant will work with disconnected data sourced lock down. Multiple demand and monitoring and quality control is another across transportation management supply shocks would rattle the global area where Maersk’s market leading systems, enterprise resource planning economy and create panic for millions of remote electronic monitoring products solutions, partner platforms, and many household consumers. Who would have have played a vital role in protecting other sources. This situation creates a predicted that toilet paper would be the perishable products through enhanced significant gap between data, visibility, first product in short supply across most data visibility. the ability to execute actions based on industrial nations, including Australia? that visibility, and effectively take control We pride ourselves in being a leader over the supply chain. Despite numerous supply chain in the digitalisation of ocean transport challenges inflicted by natural and and our work in this area continued Covid-19 has reminded us that global economic disasters in the last decade, to develop steadfastly, with several supply chains are a critical piece of our most companies still found themselves initiatives launched in 2020. The shared economic infrastructure. As an unprepared for the global scale introduction of the Maersk Spot Store industry leader we feel strongly that this pandemic. Door delivery products within “Maersk responsibility requires close dialogue Spot” and “Twill” has provided digital with customers, industry partners, From the conversations we have had solutions for customers by linking national governments and multilateral with our Australian customers, the landside with international ocean organisations. We are committed most common and immediate need services in one single solution. Maersk to continuing our collaboration with has been to introduce greater flexibility, Spot allows customers to book on customers and business partners in enhanced data visibility and new modes individual vessels at spot rates, Australia and around the world, with the of transport into their supply chains. using a full door to door solution, ambition to deliver enhanced visibility The changes in purchasing patterns of thereby offering greater flexibility for and predictability of the supply chain customers seen throughout 2020 has customers to be able to sell products through digitalisation. been dramatic, with online purchasing into new markets. Twill provides a significantly increasing, safe home Will 2021 bring some unforeseen more structured end-to-end solution delivery requirements and the need for challenges? No doubt. But we are in it with extended value-add services and these changes to be implemented in a for the long haul and we invite you along visibility. very short time to keep products flowing the exciting journey. and businesses going.
32 Shipping Australia Limited I Annual Review 2020 SAL VOTING MEMBER UPDATES MSC Mediterranean Shipping Company
Ensuring global logistics supply chain continuity during the coronavirus crisis
By KEVIN CLARKE, Managing Director, MSC Mediterranean Shipping Company
The year we are about to archive In this new era, one thing was brought to fell upon the shipping sector. In this will be seared into our memories the fore: we live in a globalised world that scenario, it was more vital than ever relies upon complex integrated supply for our industry’s services to be flexible as the year that called into chains and systems, with strong mutual and scalable enough to manage question the way we live, work dependencies across multiple countries. these increased volumes at both an and do business. In the space As a truly global shipping line and one international and intercontinental level. of the key links in global supply chains, of a few short months, the world MSC did this by adjusting capacity MSC Mediterranean Shipping Company and, where necessary, reviewing its was changed forever, as the reacted promptly to the immediate serviced routes, helping absorb the pandemic affected all populations, challenges the pandemic posed, shift in cargo volumes towards sea societies, and economies across showing flexibility, business continuity, freight. The subsequent rebounds high levels of customer service and the globe. The global health crisis in trade flows after the easing of financial strength, despite the difficult has reshaped existing production lockdowns also underscored the operating conditions. and trade patterns and forced strategic importance of flexible and companies and industries to re- reliable network management, as well Strategic global partner in a crisis as strong competencies in delivering think their supply chain models. scenario ad-hoc services. All this while many When the aviation industry was forced MSC employees were having to adjust to drastically reduce operations on a to a new remote working environment, global scale, the movement of goods continuity plans were put in place, and
Shipping Australia Limited I Annual Review 2020 33 stringent new or reinforced health- Adapting to the changing world and Civil Protection to convert the protection measures were implemented ferry ship GNV Splendid into a floating across functions everywhere in our Despite all of this, MSC’s customer- hospital to aid patients with Covid-19. locations around the world. centric focus never shifted, and in This solution was implemented in a very the first half of 2020, innovative and short period, thus increasing Liguria’s cost-effective solutions were offered MSC’s Australian Response hospital capacity and, where necessary, to customers and business partners serving other areas of the country. Almost overnight, there was the via solutions like the Suspension of Stationed at Ponte Colombo in Genoa’s requirement to set in place news systems Transit (SOT) programme, empowering Ferry Terminal, the floating hospital and procedures to cater for a combined shippers to use some of the world’s offered a total capacity of 400 beds. office and remote working environment leading transhipment hubs as advance for all employees. Imperative to this was yard storage to help them move goods More recently, in August 2020, the MSC ensuring that communication channels early and in anticipation of a resumption Group provided the Italian Government remained open between customers in demand. This provided flexibility with two additional fully equipped and MSC’s seven customer-service and enhanced operational and financial ferries, GNV Azzurra and GNV Aurelia, locations throughout Australia. Some efficiency, while helping to decrease to be used as floating hospitals in the remote working environments remained congestion in ports of discharge, south of Italy. in place for extended periods of time, as products were placed closer to as it was the case for MSC’s Melbourne distribution networks. The essential role of the maritime employees, who provided ongoing industry customer care and vessel operational In Europe, in particular, MSC assisted As we now enter a new year, we can functions through one of the world’s shippers with its short sea shipping reflect on these months as a time that longest lockdown periods. networks - a reliable alternative to road transport to avoid new land-border has shown very clearly the centrality During this time and coupled with the blockages created by governments’ of container shipping and logistics recent port strikes that have affected essential action to curb the movement in international trade. At present, multiple ports in the country, MSC of people and to be prepared to meet around 90 per cent of the world’s trade moved in a flexible way to manage current and future market demands. is transported by sea. The maritime resulting congestions via alternative industry has and continues to play an routings. MSC also continued providing MSC Group’s contribution to countries essential role in the current emergency, comprehensive coverage across all relief efforts working tirelessly to bring people seven weekly ports of call in Australia, everyday goods such as medicines, and never stopped investing in its liner As the pandemic began to take hold in food, fresh produce and clothes. It network, which connects markets within Italy earlier in the year, Grandi Navi Veloci is a crucial role that should not be Australia and directly links the country to (GNV) - part of the MSC Group and understated. continents, including direct services to operating ferry services within Europe – Europe, Asia and America. worked with Italy’s Liguria Health System
34 Shipping Australia Limited I Annual Review 2020 COMMONWEALTH AGENCIES Department of Agriculture, Water and the Environment
Vigilance leads to strength and innovation in biosecurity
By ANDREW TONGUE, Deputy Secretary and Head of Biosecurity Australian Government Department of Agriculture, Water and the Environment
2020 brought changes no one could have Through the program, currently in its third We are also continuing to trial modified predicted, with the global movement of year, we are investing in new technologies Remotely Operated underwater Vehicles people slowed to combat the biggest and approaches to biosecurity risk (ROVs) with live-streaming high-quality human biosecurity threat in a century. But management. For example, in collaboration video, sonar navigation and custom the movement of goods has continued, and with Iugotec Pty Ltd, we are developing mountable wheels, so ROVs can ‘drive’ is now more important than ever to ensure portable technology to detect brown along the underside of a vessel hull. robust global economies and food security. marmorated stink bugs in containers We have been resolving issues related without conducting manual searches. The shipping industry helps connect us to to in-water cleaning policy and will the wider world and keeps Australia’s trade Our partnership with the Centre for Invasive consult with industry on a new strategy alive, so we can remain one of the world’s Species Solutions and the University of in 2021. We have also maintained strong economies. Canberra’s EcoDNA Laboratory is exploring active involvement in the review of the genetic methods for pest detection, with International Maritime Organization’s But as mail and cargo volumes increase, researchers now able to find DNA traces of Biofouling Guidelines and are designing so do potential biosecurity risks that could pests like khapra beetle, in dust and dirt stronger regulation of biofouling risks. threaten our agricultural industries and on packaging. rich environmental heritage. Pests and diseases remain just one sea or air voyage Other pest detection technologies for A strong partnership with industry from our shores. shipping containers are being developed We understand that working with the by Trellis Data Pty Ltd and Industry Spec As the agency tasked with safeguarding shipping industry to manage biosecurity Drones Pty Ltd, through proof of concept Australia’s biosecurity, we prevent and risks is give and take, and we are looking funding in the form of Business Research respond to plant and animal pests and for ways to reduce red tape to make the and Innovation Initiative grants. diseases that threaten us. movement of goods easier for everyone. These cutting-edge technologies are part In 2020, we responded to interceptions The 2020 Budget committed to busting of a strong defence against invasive pests. including the potentially devastating khapra congestion for agricultural exporters. But we also need the shipping industry to beetle, found in imported whitegoods, avian We will provide a modern digital export remain vigilant. flu in Victoria, and parcels of unidentified system in the form of a single online seeds arriving to unsuspecting members of We encourage industry to practice good portal. This will reduce documentation the public. container hygiene and report pests to our and processing times and make dealing See. Secure. Report. hotline — 1800 798 with government faster and more cost- This decade will see more mail and cargo effective for exporters. 636 — or online at agriculture.gov.au/report. entering Australia than ever before; and as the world recovers from COVID, the influx The online portal is just one of several of passengers will eventually resume and Better marine risk management Budget measures that will help products get potentially rise. to export markets faster, and a step towards In 2020 we also made progress in a better regulatory system for all cross- That’s why we continue to strengthen our technology and activities to better border trade. biosecurity system to protect our $61 billion manage biosecurity risks from ballast agricultural industry and over $6 trillion in water and biofouling. We envision a future state of biosecurity where industry and community feel environmental assets. Advances in the use of molecular ownership and responsibility for protecting technology in port surveillance bolstered our country from pests and diseases. We Innovation key to a strong, smart our understanding of the risks related to are committed to continuing to work with biosecurity system ballast water, and allowed us to increase the you to manage biosecurity risks, so we availability of risk-based exemptions for major Innovation is vital to stay ahead of ever- can all contribute to keeping Australia’s cargo routes in Australia. In collaboration agriculture and environment safe. changing biosecurity challenges. Our with Centre for Excellence in Biosecurity Biosecurity Innovation Program seeks Risk Analysis, we spearheaded projects to to evolve how we manage risks, so our investigate machine learning technology biosecurity system works smarter into the that can rapidly assess biofouling risk on future. submerged vessel surfaces.
Shipping Australia Limited I Annual Review 2020 35 MARITIME SAFETY Australian Maritime Safety Authority
Shaping up for the future
By MICK KINLEY, Chief Executive Officer, Australian Maritime Safety Authority
This year has seen an mandatory quarantine and separation for seafarer repatriation and crew unprecedented shift in our from their friends and families, has changes. From 28 February 2021, taken a toll. operators will once again be required community as a result of to meet international requirements The vulnerability of our seafarers is COVID-19. The pandemic and seafarers will return to being a timely reminder of the importance on board for no longer than 11 has brought monumental of the Maritime Labour Convention continuous months. For our part, we challenges, but it has also been an (MLC). During the past six months, are committed to keep working with AMSA has monitored the level of opportunity for AMSA to prepare operators that make every effort to look compliance and intervened to support for a future where unknowns are after their seafarers. the norm and effective regulation seafarer repatriation during a time of international border closures. But Ironically, some Australian seafarers is more flexible and responsive. while flexibility on the part of regulators have faced the possibility of not While the future heralds ongoing was necessary when the COVID-19 being able to get back out to sea environmental and technological pandemic began, keeping seafarers on due to complications around ticket changes, the events caused by the board ships for longer than 11 months renewal because of difficulty meeting COVID-19 pandemic have highlighted is not sustainable. renewal requirements under COVID-19 restrictions. AMSA addressed this the importance of looking after the Since June, AMSA has received by extending some AMSA-issued people at the heart of our industry—the 149 MLC complaints, issued 227 certificates, which is one of a number seafarers maintaining global trade and deficiencies and detained 11 ships, five of measures implemented to assist delivering the vital goods and supplies of which were in response to excessive industry overcome governance issues that we all need. seafarer service periods. caused by the pandemic, and to keep This important role has unfortunately As this year draws to a close, there has seafarers working. come at great personal cost to the been sufficient time for ship operators We appreciate that some sectors seafarers. Longer periods at sea, to adjust to the new COVID-19 world of the domestic commercial vessel difficulties undertaking shore leave, and to develop effective strategies
36 Shipping Australia Limited I Annual Review 2020 sector have also been significantly will help the wider industry to ensure culture that values and manages safety. impacted by the pandemic, and we their operations are compliant with the As AMSA nears its 30 year anniversary, continue to work with all tiers of law, thereby contributing to safer, cleaner we look back on a proud history of government and industry to provide seas. service and contribution to shipping support where possible. In addition to investigating all Maritime safety, provision of aids to navigation, While we focus on returning to business Labour Convention complaints, the pollution response, search and as usual in a post COVID-19 world, our plan also commits to targeting a range rescue, and more recently, domestic long-term strategic goals remain high of safety priorities through Port State commercial vessel safety. on our agenda. and Flag State control and inspection Over the years we have responded to of domestic commercial vessels around As a safety authority, our policies, countless incidents—from oil spills, lost Australia. These priorities, which regulations and capabilities must be containers, search and rescue incidents, broadly cover vessel seaworthiness and able to accommodate unknowns and not to mention the search for MH370 and operational safety, address many of offer flexibility, while also supporting a whole raft of other important events— the causes our incident data reveals as a safe, environmentally responsible in collaboration with our colleagues, contributing factors to environmental and maritime sector. It is also imperative that industry partners, and in some cases, safety incidents. regulations remain relevant and practical everyday Australians. for industry to implement. Consulting We will continue to focus our As we look to the future, we consider closely with industry is an important part interventions on high-risk and low- ourselves fortunate to have strong of this process. compliance operations, while supporting connections. These ties, along with all our regulated community with timely, Unfortunately, serious incidents remain the work we are undertaking to position relevant and accurate information that all too common in the maritime industry AMSA for the future, puts us in a strong enables them to voluntarily meet their and safety and environmental protection position to deliver effective regulation and obligations. continue to be key areas of focus. response capability, in an environment Our relationships with international of continual disruption. For the shipping This year, we implemented the National and domestic stakeholders—from the industry, disruption is coming in many Compliance Plan 2020-2021, outlining International Maritime Organization forms, but the global community is more our inspection focus areas over the through to all tiers of Australian willing than ever to question the social coming year, and our approach to non- government, regional bodies, industry license to keep doing things the same compliance. It is my hope that providing associations, domestic operators and way, if those ways harm people or the a transparent overview of what we will be seafarers—are also vital in developing a environment. looking for in our inspection campaigns,
Gladstone Ports Corporation - creating a prosperous future for our shareholders, customers and community.
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Shipping Australia Limited I Annual Review 2020 37 MARITIME SAFETY Australian Transport Safety Bureau
Ensuring safe passage and safety on the seas
By GARY PROSSER, Commissioner, Australian Transport Safety Bureau
I was honoured to have been (IMO) I was fortunate enough to help should ensure that systems, machinery shape maritime regulation and policy and equipment critical to the continued appointed to the Australian and establish Australia as a significant safe operation of the ship are thoroughly Transport Safety Bureau’s contributor to maritime safety, as both a understood, as well as appropriately Commission in 2019 to help port state and significant coastal state. maintained and tested. support and oversight the In 2009, I was appointed as Secretary Subsequent to the grounding, the strong maritime work of the General to the International Organisation ship’s operator made improvement to for Marine Aids to Navigation (IALA), their safety management and operating nation’s transport safety headquartered in Paris, prior to returning systems, as well as staff education and investigator. to my DCEO role at AMSA in 2015, in training processes. which I served until retiring in 2019. Separately, the port operator revised So my career voyage has covered all escort towage arrangements for ships An independent, no-blame investigator aspects of the shipping industry, from departing its facilities in Dampier, plays a critical role in any nation’s commercial to regulatory and more. following extensive simulation transport industry, and I am proud to These multi-disciplinary experiences exercises and a review of existing risk be able to bring my more than 40 years provides a sound basis for my role as an assessments. As a result, a second tug of experience in the maritime industry ATSB Commissioner, having long read remains in attendance with bulk carriers to help the ATSB ensure appropriate investigation reports published by the for further along the channel. Further, a outcomes and improvements in ATSB and its predecessor agency, the comprehensive guidance manual for ship maritime safety. Marine Accident Investigation Unit (which towage operations in Dampier and Port sat within the former Commonwealth Walcott was developed. Beginning my career as one of the Department of Transport). inaugural Australian Maritime College The YM Efficiency investigation, (AMC) cadets, I served on a wide I have seen incident investigation evolve meanwhile, that highlighted weather variety of Australian ships, in both the tremendously since my early days, with forecasting, routing and good international and domestic trades. I then the ATSB now adopting a multimodal navigational practices in adverse weather, embarked on the onshore component approach to investigation that sees all play a part in minimising the risk of of my career when I managed offshore investigators from a broad cross section injuries to crew and damage to ship, supply vessel operations in the offshore oil of specialisations, who undertake cargo and environment. and gas industry in Bass Strait, combining specialised tertiary training, working on However, safe and effective container my commercial operations and safety transport safety investigations across the stowage planning is the primary control management experience. I also led the three transport modes. P&O Polar Division, based in Hobart, measure in managing the risks involved in managing the Antarctic and marine science The results are world-class, independent carrying containers by sea. no blame investigation reports that drive vessels for the Australian Antarctic Division As a result of this accident, the ship’s safety improvement in the maritime and CSIRO, to support their vital marine managers have taken a number of industry. As examples, this year has seen and environmental research in the Southern safety actions to address the identified, the ATSB release two prominent maritime Ocean and Antarctica. including requiring checks of lashing investigation final reports, namely the loss forces during the initial cargo stowage I would then join the Australian Maritime of containers from the MV YM Efficiency, planning stage ashore, providing regular Safety Authority in 1997, where I held and the grounding of the bulk carrier MV training of shore planners in multiple a variety of senior management roles Bulk India during departure from Dampier, aspects of cargo loading and securing, before being appointed Deputy Chief Western Australia. Executive Officer (DCEO) in 2007. Then and training responsible ship’s officers as the Australian Head of Delegation to The Bulk India investigation highlighted in the use of the ship’s loading computer the International Maritime Organization that ship operators and crewmembers system.
38 Shipping Australia Limited I Annual Review 2020 I highly recommend all mariners and interested parties read these investigation reports, as they are excellent tools in enhancing maritime safety and environmental protection, and demonstrate the value of driving safety actions through no-blame investigation. So, how does the ATSB’s no-blame role fit alongside other maritime regulatory authorities and organisations such as AMSA, IMO and IALA? AMSA provides the lead for Australian maritime safety regulation, maritime environmental emergencies, and maritime and aviation search and rescue. It promotes and implements safety standards and environmental policies, both nationally and internationally. IMO provides the global role of creating a regulatory framework for the shipping industry that is “…fair and effective, universally adopted and universally implemented.” And IALA provides and promotes the development and adoption of standards and guidelines to support safe and efficient shipping. Its standards and guidelines are developed by member countries. These standards and guidelines inform the IMO. As with any transport industry there is a maze of regulations, standards, guidelines, both internationally and nationally. My work across these organisations has helped me gain an appreciation of the intricacies that the maritime industry must navigate to ensure safe passage and safety on the seas, and the importance of the ATSB in fostering and encouraging continuous safety improvement for the maritime industry.
Shipping Australia Limited I Annual Review 2020 39 STATE TRANSPORT AND LOGISTICS Queensland
Keeping shipping moving in Queensland By the Hon MARK BAILEY MP, Minister for Transport and Main Roads
2020 saw COVID-19 impact jobs during construction and will now As we look forward to 2021, a re-elected economies around the world, see Cairns reap up to 2,700 direct and Palaszczuk Government will ensure our including both in Australia and indirect jobs by 2031. ports remain in public hands and secure maritime jobs in a revitalised Queensland Queensland. The biggest upgrade in the history of coastal shipping industry. Northern Queensland’s largest port – the port But, a strong health response from of Townsville – also notched plenty of runs Last year, the Palaszczuk Labor Queenslanders meant the shipping on the board, including significant progress Government established a Maritime Jobs industry could continue to operate on the rockwall, with 750,000 tonnes of rock Taskforce to investigate opportunities to and that the Palaszczuk Government supplied by seven local suppliers. grow the State’s maritime industry. could get on with the job of investing With the Townsville port expecting Now, we will implement the in our 16 trade ports, as part of the three-fold trade growth over the next 30 recommendations of the Taskforce State’s plan for economic recovery. years, upgrading its capabilities now, Report, estimated at approximately $21 The efforts of industry, maritime alongside a half-a-billion commitment to million, including an expression of interest authorities and Government saw shipping upgrade the rail line between Mt Isa and to establish a new shipping service inject more than $114.4 billion into Townsville, will ensure the port has the between Townsville and Brisbane, with Queensland’s economy, with 11,388 capacity to keep pace and support 120 local crews. jobs in construction in the process. vessels able to enter Queensland waters Through maritime cadetships and from January to mid-November – getting Because we know, when Townsville’s training, we will grow skills, with vital exports to markets across the globe, port is strong, close to 800,000 approximately $1 million to support and crucial goods into the State. Queenslanders reap the benefits. additional training for Queenslanders to enter the industry or to upskill. Our publicly owned ports in places like In Bundaberg, we’ve seen an Townsville, Gladstone and the Far North unprecedented level of interest from We will also continue to work with collectively, facilitated more than 242 million businesses like Knauff and Pacific Tug, Queensland port authorities to ensure tonnes of throughput, supporting thousands because of ongoing investment in the port. landside infrastructure is fit for purpose. of jobs across various industries. And the State has now signed Those initiatives alone will create another Those figures alone show just how the agreement with the Australian 40 ongoing and secure jobs and support important shipping is to Queensland’s Government for the Common User Australia’s shipping industry. economic recovery and why the Infrastructure Project, which will see Queensland has a proud and Palaszczuk Government is committed to $10 million locked in for new trade remarkable maritime history, and growing our ports, tourism and trade. opportunities at the Bundaberg Port Queenslanders know we are at our by utilising the existing Bulk Sugar Earlier this year we completed the $127 strongest when we work together. million Cairns Shipping Development Terminal Wharf and ship-loading – a project that supported up to 800 facilities to export and import new products.
40 Shipping Australia Limited I Annual Review 2020 The Merchant Navy A PROJECT OF RESPECT AND RECOGNITION War Memorial Fund Ltd Picture taken Sunday 20th October 2019 following the Official Unveiling of the New & Remedial Works to the(MNWMF Merchant ) Navywww.mnwmf.com War Memorial, Kings Park, Canberra, by the Minister for Defence, Senator The Hon. Linda Reynolds CSC. On the right & left hand side are the four new concrete blades which were installed to provide for four large Bronze Plaques to be commissioned that carry the names & respective ships of the 862 Australian Merchant Mariners who sacrificed their lives for their country in WWI (184) & WWII (678). The 30th Annual Commemoration was attended by some 140 including, WWII Merchant Navy Veterans (whose numbers are so sadly decreasing each year), members of Merchant Navy Organisations, Representatives of the Australian Defence Forces, Diplomatic and Consular Corps and representatives from a range of other Maritime related organisations.
THETHE MERCHANT MERCHANT NAVY NAVY WAR WARMEMORIAL MEMORIAL FUND FUND (MNWMF) (MNWMF) PROJECT DEVELOPMENT FUND Seeks maritime industry financial support to have the four bronze The fund has been developed as an ongoing entity to financially support one of our plaques that were installed at the Merchant Navy War Memorial in Prime Objectives…’To ensure the greater recognition of the vital role undertaken by the Australian Canberra (Oct 2019) reproduced for installation at the Merchant Navy Merchant Navy in WWI & WWII’. It also seeks to encourage successive generations to take Memorial & Columbarium, Rookwood Necropolis, Rookwood, Sydney up our, and our predecessors’, passion & commitment to ensure that future MerchantA project Navy of recognitionrespect and is recognitionas secure in thethat future will carry as in thethe past names & present. and The Merchant Navy respectiveOurA PROJECT aim OFships RESPECT in ANDall of RECOGNITION that the we 862 undertake AustralianWar Memorial is toFundMerchant ‘Make Ltd a difference’. Mariners who Picture taken Sunday 20th October 2019 following the Official Unveiling of the New & Remedial Works to the(MNWMF Merchant ) Navywww.mnwmf.com War Memorial, Kings Park, Canberra, by the Minister for Defence, Senator The Hon. Linda Reynolds CSC. On the right & left hand side are the four new concrete blades which weresacrificed installed to provide for fourtheir large Bronze lives Plaques tofor be commissioned their that countrycarry the names & respectivein WWI (184) & WWII (678) ships of the 862 Australian Merchant Mariners who sacrificed their lives for their country in WWI (184) & WWII (678). The 30th Annual Commemoration was attended by some 140 including, WWII Merchant Navy Veterans (whose numbers are so sadly decreasing each year), members of Merchant Navy Organisations, Representatives of the AustralianPROJECTS Defence Forces, UNDERTAKEN Diplomatic and Consular BY THE Corps MNWMF • Completion in Octoberand representatives 2019 offrom the a range extensive of other Maritime New related & Remedial organisations. Works at the Canberra Memorial, in association with The National Capital Authority & our Architect & Construction Firm • Annual Merchant Navy Commemoration Ceremonies at National Merchant Navy War Memorial, Kings Park, Canberra and at the Rookwood Memorial Garden, Sydney • Annual provision of MNWMF Scholarships at the Australian Maritime College (AMC) • Assisting the identification of Sea Going opportunities for AMC Cadets • Sponsorship of the ‘Young Achievement’ Award at the Shipping & Maritime Industry Awards 2018 to 2020 • Financial support for other Merchant Navy Memorials around Australia • Support of the Company of Master Mariners of Aust (CMMA), The Merchant Navy RSL Sub Branch, The Merchant Navy Association (MNA)
NEW INITIATIVES 2020 The four new plaques at the National Merchant The beautiful surrounds of the Merchant Navy • Developing strategies on how best to address achieving appropriate national approvals for the addition / inclusion of the Navy War Memorial, Canberra, following the War Memorial, Columbarium & Rose Garden at Merchant NavyTHE Logo MERCHANT / Badge on War Memorials NAVY throughout WAR Australia • Working with the National Flag Association (ANFA) to (I) achieveofficial a closer unveilingalignment in of October National 2019, Flag by Day the & MinisterMerchant NavyRookwood, Day, both Sydney, of which where are 3rd a commemoration September each year and MEMORIALfor Defence, Senator FUND Hon.(II) achieve Linda (MNWMF) greaterReynolds prominence CSC. of the Merchantevent Navy is held Flag each April. PROJECT DEVELOPMENT FUND The fund has been developed as an ongoing entity to financially support one of our Prime Objectives…’To ensure the greater recognition of the vitalFor role more undertaken information: by the Australian Merchant Navy in WWI & WWII’. It also seeks to encourage successive generations to take up our, and our predecessors’, passion & commitment to ensure that future Merchant Navy recognition is as secure in the future as in the past & present. Ourwww.mnwmf.com.au aim in all that we undertake is to ‘Make a difference’.
PROJECTS UNDERTAKEN BY THE MNWMF DAVID• Completion FIELD: in October [email protected] 2019 of the extensive New & Remedial Works at the Canberra Memorial, in association with The National Capital STAN MORIARTY: [email protected] Authority & our Architect & Construction Firm • Annual Merchant Navy Commemoration Ceremonies at National Merchant Navy War Memorial, Kings Park, Canberra and at the Rookwood Memorial Garden, Sydney • Annual provision of MNWMF Scholarships at the Australian Maritime College (AMC) • Assisting the identification of Sea Going opportunities for AMC Cadets • Sponsorship of the ‘Young Achievement’ Award at the Shipping & Maritime Industry Awards 2018 to 2020 • Financial support for other Merchant Navy Memorials around Australia •CONTRIBUTIONSSupport of the Company of Master MAY Mariners BE of MADE Aust (CMMA), TO: The Merchant Navy RSL Sub Branch, Theor Merchantby EFT Navy to: Association (MNA)
The Secretary, NEW INITIATIVES 2020 Bank: WESTPAC Banking Corporation • Developing strategies on how best to address achieving appropriate national approvals for the addition / inclusion of the MerchantMerchant Navy Navy Logo War/ Badge Memorialon War Memorials Fund throughout Ltd Australia (MNWMF) • Working with the NationalAccount Flag Association Name: (ANFA) M to NWMF Project Development Fund BSB: 032 197 (I) achieve a closer alignment of National Flag Day & Merchant Navy Day, both of which are 3rd September each year and PO Box 3058, Rosemeadow(II) achieve NSW greater 2560prominence of the Merchant Navy Flag Account No: 477 684 Reference: Include your name & organisation Please note: If paying by EFT please forward an email with your name, organisation, address and phone number to [email protected] AFor receipt more information: will be forwarded for all donations received. MNWMF is currently pursuing an Application for registration as a Deductible Gift Recipient (DGR). Shipping Australiawww.mnwmf.com.au Limited I Annual Review 2020 41
DAVID FIELD: [email protected] STAN MORIARTY: [email protected]
CONTRIBUTIONS MAY BE MADE TO: or by EFT to: The Secretary, Bank: WESTPAC Banking Corporation Merchant Navy War Memorial Fund Ltd (MNWMF) Account Name: MNWMF Project Development Fund BSB: 032 197 PO Box 3058, Rosemeadow NSW 2560 Account No: 477 684 Reference: Include your name & organisation DCN_MerchantNavy.indd 16 31-Jan-20 2:51:36 PM Please note: If paying by EFT please forward an email with your name, organisation, address and phone number to [email protected] A receipt will be forwarded for all donations received. MNWMF is currently pursuing an Application for registration as a Deductible Gift Recipient (DGR).
DCN_MerchantNavy.indd 16 31-Jan-20 2:51:36 PM PORTS Ports Australia
Sustainability – an investment for the future By STEWART LAMMIN, Chair, Ports Australia and Chief Executive Officer, Flinders Port Holdings
The past twelve months has seen the foundations for facilitating trade, but The end of a year always brings a time importance of sustainable practices they are also community members for reflection, this one with particular pushed to the forefront, now more and environmental partners. They also focus on COVID-19 and the challenges than ever before, by the Australian operate in some of our most beautiful it posed. Nobody could have ports sector. This can be attributed and important natural environments. For anticipated something like a pandemic to COVID-19 shining the spotlight on these reasons, sustainability should be to hit the world the way it continues to. gaps missed in past planning, potential at the core of all businesses serving a The challenge for our national supply weaknesses in current operations, supply chain. chain is ongoing, and we may not see and areas needing a revisit for future a resolution for some time. This year One port’s sustainability journey is a mapping. Fortunately, we end 2020 has proven that while we can’t predict critical contribution to the network of with confidence in what we’re doing and the future, we can place ourselves in supply chain partners playing their role in where we are heading as a sector. the best position possible to overcome overcoming the threats currently facing its hurdles. The objective of sustainable practice the modern world, while simultaneously is often confused with environmental continuing to operate and serve their Before considering unanticipated protection, when it’s actually so much community. These efforts tackle current threats like COVID-19, we remain more. It’s fortifying the future of your global challenges, carbon emissions vigilant in identifying biosecurity risks, operations, and your relationship with and pollution, and local challenges like interrupted supply chain continuity, the environment within which you community engagement. cybersecurity attacks, environmental operate. The environment with which degradation, and economical and Over recent years, Ports Australia has you share this relationship encompasses workforce instability. These are just directed a great deal of attention towards surrounding communities, physical land some of the threats we acknowledge the relevance and value of sustainable and life, and the corporate workforce and plan for as a ports sector. practice for the ports industry. We’ve behind the operation. examined the work Australian ports have From Ports Australia’s perspective If ports and supply chains are to evolve already put in for their future, and more as the peak body for the sector, and serve their communities long into recently we’ve produced a guide for communication is the strongest way the future, we believe sustainability is sustainability planning. to get ahead of these kinds of risks. a priority focus. Ports are economic Through a ground-up approach, the Showcasing current sustainability team has made a conscious effort to projects at our nation’s ports was our enhance lines of communication this way of informing the community on the past year, in response to COVID-19. investment being made for the sector’s That’s meant increasing the capacity for future. While our Port Sustainability our internal technical working groups to Strategy Development Guide was meet (albeit virtually for now), boosting produced to further strengthen this correspondence with government commitment and encourage an departments, and strengthening ties ongoing effort. In doing so, knowledge with our newest members from across can be shared between supply chain the South Pacific, to share knowledge partners and ports can be empowered pertinent to our region’s resilience. to take action for the future. As the peak body for the sector, it’s our I’m proud to reflect on the efforts made priority to acknowledge and promote by the wider ports community towards Stewart Lammin, Deputy Prime Minister an aspect of business which unites the sustainability planning, which have Michael McCormack and Ports Australia ports sector under one shared set of ultimately placed us in a position to CEO, Mike Gallacher visions and values, despite each port handle any future adversities in 2021. operating uniquely.
42 Shipping Australia Limited I Annual Review 2020 A world class supply chain partner for South Australia Through integrated ports, infrastructure and logistics services, Flinders Port Holdings connects South Australian businesses to each other and to the world.
flindersportholdings.com.au
Flinders Flinders Adelaide Flinders Flinders Warehousing Ports Container Terminal Logistics & Distribution Shipping Australia Limited I Annual Review 2020 43 PORTS Port Authority of New South Wales
A resilient response to a year of change By PHILIP HOLLIDAY, Chief Executive Officer and Director, Port Authority of New South Wales
From the rapid response to COVID-19 our team members have been working future possibilities opened up following to a new strategic vision set to improve with maritime welfare organisations to the start of construction on our new levels of service for shipping, it’s been a coordinate support services and to assist multi-user facility at Sydney’s Glebe year of significant change for the ports of in trying to achieve better outcomes for Island, our work to maximise the New South Wales seafarers during this difficult period. potential of technology to monitor weather, underkeel clearance and If one word could sum up 2020, for me Of course, despite our collective efforts, provide accredited VTS support in our it’s ‘resilience’. Australia has faced two the impacts to shipping over the past major ports, we’ll continue looking at unprecedented crises this year, first the year have been significant — not least new ways to optimise our port assets devastating bushfires, then the ongoing with the continuing suspension of cruise to deliver further service offerings and impacts of COVID-19, and has stood firm activity in Australian waters. First, opportunities. in the face of adversity. bushfires forced the closure of port of Our new strategy is being led by a This resilience, shown by so many across Eden at the height of cruise season, refreshed Executive Team, who are the country, has also been reflected then COVID measures came into play. already developing and implementing across Australia’s port sector and in the The impacts from the loss of cruise initiatives across our ports that point to people working to keep our ports safe, tourism will be felt far and wide, and Port better outcomes for shipping in New secure and open to the world. Authority will work with the industry to facilitate a safe ‘restart’ to cruise when South Wales. The past year more than any has served the time is right. to highlight the immense value of our A sustainable future for the ports of ports to Australia, the economy and the Strategic change for the ports of New New South Wales wellbeing of our society, and our maritime South Wales We’ve also set our sights on securing workforce has gone above and beyond a more sustainable future for the to ensure our ports have continued While 2020 has forced rapid changes ports of New South Wales, with the delivering for the nation. across the industry, it’s also been a year of significant strategic change for Port launch of our Sustainability Plan. Authority of New South Wales. Our plan provides our teams with a Keeping ships moving in New South holistic and meaningful framework Wales Earlier this year, we announced our new to embed sustainable practices into In the ports of New South Wales, we Vision and Strategic Plan 2020–25 to every aspect of maintaining the safety, developed and enacted a COVID-specific guide us forward for the next five years. security and success of our working Business Continuity Plan early on in The plan outlines our long-term goals ports. Sustainability and improving the crisis to safeguard our people and and strategic priorities, and represents environmental, economic and social ensure our operations remained capable an important shift to becoming a more outcomes, is a growing focus for our of facilitating shipping across our ports. customer-focused organisation. Our industry and if there’s ever a time The resilience shown by our teams, and goal is to increase the quality, efficiency, for making positive and long-lasting their ability to work collaboratively with consistency and reliability of our services change, it’s now. our customers to adapt and respond to a by unifying operations across our ports, As CEO, my priority is to ensure Port fast-changing situation is a credit to their and implementing a system that embeds Authority always provides safe, efficient professionalism, and critical to keeping continuous improvement, innovation and and sustainable maritime services and ships moving in New South Wales. performance measurement across our port assets for our customers and New operations. I must also commend our teams for South Wales. The past year has tested their continued support for seafarers In addition, we’re committed to working our capabilities to the extreme, but it’s visiting our ports. The world’s seafarers together with customers to identify shown that we’re a resilient organisation have been hard hit by the global and develop new mutually beneficial in a resilient industry and we’ll embrace response to COVID-19 and many of opportunities across our ports. With change together.
44 Shipping Australia Limited I Annual Review 2020 Keeping the ports of NSW safe, secure and open to the world
We work 24/7 to provide safe navigation and efficient marine services for shipping and the working ports of New South Wales
Sydney Harbour | Port Botany | Newcastle Harbour | Port Kembla | Port of Eden | Port of Yamba www.portauthoritynsw.com.au Follow us @portauthoritynsw
Pilotage Port Botany, New South Wales Shipping Australia Limited I Annual Review 2020 45 PORTS Port Botany and Port Kembla
Gateways for growth - investing to support New South Wales’ growing trade volumes BY MARIKA CALFAS, Chief Executive Officer, NSW Ports
As key trade gateways for of the typical container ship visiting the of LPG to the port. Construction is port. Port Botany is well equipped to forecast to take up to 20 months, our nation, our ports tell the handle these big ships, with current port putting the project on track to supply story of 2020. From droughts infrastructure able to handle vessels up to more than 75 per cent of New South to bushfires, industrial action 15,000 TEU today. Wales’ gas needs by the end of 2022. We are thrilled to bring a new We have also continued to invest in and a global pandemic, Port trade to Port Kembla, supporting its landside infrastructure initiatives, to grow Botany and Port Kembla growth as an energy hub and providing the movement of containers on rail. Port diversification and growth for the have continued to adapt to Botany is the only port in Australia with Illawarra region. keep trade and the economy on-dock rail at every container terminal, moving. Despite these and together with our stevedores, we are investing in a staged programme to Sustainably supporting New South challenges, NSW Ports and increase our on-dock rail capacity to 3 Wales port operators have continued million TEU at the port. The first phase Looking to the future, sustainable to invest in initiatives that will of $190 million, with Patrick Terminals, is operations and sustainable growth progressing well, with operations due to continue to be at the forefront of our support New South Wales into commence in early 2021. approach to managing our port and intermodal assets. We continue to the future, as our population Another example involving industry lead the way in Australia with our and trade volumes grow. collaboration, was bringing online new environmental shipping incentive (ESI) empty container storage capacity to programme, which rewards ships help with empty container congestion with higher standards of emissions As an essential service and key within the New South Wales supply performance through financial infrastructure asset for the nation, Port chain. This included creation of an incentives. As part of the World Botany handles around one third of additional 4,500 TEU at ACFS in Port Ports Sustainability Program, our Australia’s container volume and 99.6 Botany, which commenced operations ports are the first in Australia to offer per cent of New South Wales’ container in August, and the opening of a new an ESI programme. In the past 12 volume. To put this into perspective, if empty container park operated by Tyne months, more than 570 vessel visits you live in Sydney, nearly half (42 per Container Services on Simblist Road in have qualified for an ESI incentive, a cent) of all goods in your household June, which delivered an additional 5,000 significant increase during this period. (including food and beverages) have TEU empty container capacity. arrived in a container through the port. These investments in sustainability and Throughout 2020, we have been Port Kembla infrastructure capacity will ensure that these key trade gateways continue to investing in ongoing maintenance of port Port Kembla has exciting growth effectively service New South Wales’ infrastructure, including wharves and opportunities ahead. In addition to long-term growing trade needs. berths to ensure they are able to handle being the site for New South Wales’ the larger vessels that are now visiting, second container terminal once Port and in the future will visit, Port Botany. In Botany nears capacity, we recently the last financial year, we saw the arrival signed a long-term lease with Australian of 105 vessels with capacity of 8,000 Industrial Energy to construct and TEU or more, compared with just 37 operate Australia’s first ever LNG ships in FY19. This includes the largest Import Terminal at Port Kembla. The capacity container vessel to ever call at Port Kembla Gas Terminal (PKGT) is Port Botany, the CMA CGM Ural, which approved to bring an additional 52 at 10,622 TEU, is nearly double the size ships per year, carrying 100 petajoules
46 Shipping Australia Limited I Annual Review 2020 PORTS Newcastle
RoRo Heogh Tracker entering the port of Newcastle
Rail, road and land capacity make Newcastle an attractive deepwater trade hub
By CRAIG CARMODY, Chief Executive Officer, Port of Newcastle
Australia’s supply chains and national in place a number of precautionary such as mental health first aid training resilience were certainly tested in 2020. measures to keep frontline operational for our staff and the Smiling Mind The year has been defined by the employees and contractors safe in their programme – both in the works before direct and indirect implications of the work environments. COVID-19 – took on greater significance. pandemic. Port of Newcastle, like many Agile working arrangements are now our The sudden change brought its organisations, took a precautionary new “normal”. approach early on when COVID-19 first own challenges, particularly around emerged in Australia. We identified protecting mental health in the While Port of Newcastle’s trade has so three key priorities: to keep our people workplace. While COVID-19 gets the far been largely unaffected by the global safe, do our part to minimise COVID-19 headlines, mental health has become an COVID-19 pandemic, this has not been community transmission and to maintain equally important workplace health and the experience for many in the industry. the continuity of port operations for our safety priority for our organisation this The resilience of the port community customers. Port of Newcastle was one year. Our working arrangements made has become all the more critical in 2020. of the first organisations in the Hunter us more geographically fragmented than The longest-lasting consequence of the to shift to remote working arrangements previous years, but in many ways we 2020 toilet paper shortage might be the for all office-based staff, while putting have grown stronger together. Initiatives fact it highlighted how much our society
Shipping Australia Limited I Annual Review 2020 47 New intercity train carriages from South Korea unloading in Newcastle
takes for granted, otherwise robust Port of Newcastle is the knowledge operations were undertaken during supply chains. The reality is that ports that, when Australia’s largest east coast the David Allan’s temporary absence are important. Port of Newcastle’s port is providing reliable, efficient and to maintain safe access within the trade alone is valued at $25 billion competitive access to global markets, channel. a year. More important, though, are the benefits flow well beyond the port In 2020, Port of Newcastle’s deepwater the flow-on benefits generated from boundary. port activity. Respected economists access and excellent connections HoustonKemp recently analysed the Safe, reliable, deepwater access to national road and rail networks contribution that Newcastle’s port requires regular survey and continued to provide an attractive activity makes towards the Hunter, maintenance dredging. The port’s supply chain option for a range of State and national economies. The dredger, David Allan, is a familiar sight trade types. Diversification continues port’s direct and flow-on contribution around the harbour. David Allan this to be a key goal for our region. The to Australia’s gross domestic product year marked 30 years of service. The port’s break bulk and project cargo (GDP) is almost $1.5 billion and it vessel spent two months in Yamba for handling facilities were again in high also underpins almost 9,000 full-time its five yearly docking and major refit at demand, most notably to facilitate the equivalent jobs nationally. What drives Harwood Marine. Targeted bed levelling delivery of new ferries and trains for
48 Shipping Australia Limited I Annual Review 2020 New South Wales. May, saw the return Embracing renewable energy trade is We are very optimistic about what of commercial roll-on-roll-off trade, just part of a broader focus on creating 2021 will bring. With a multibillion- with Höegh providing direct services a safe, sustainable and environmentally dollar capital investment programme, for vehicles and heavy equipment and socially responsible port of the there is much to look forward to in the needed in the mining, construction and future. We set ourselves an ambitious years to come. The port will continue agricultural sectors. goal to transition to electric vehicles building its team following a number of and 100 per cent renewable energy key appointments in 2020. The Multi- The port has long been recognised supply by the end of 2021. We are well purpose Deepwater Terminal (MDT) as Australia’s leading energy port, on track to meet that with a significant project continues to be entirely subject dominated by thermal coal but part of our operations already powered to the removal of penalties applying with a growing and critical role as by renewable energy and 70 per cent to container movements through the a gateway for renewable energy of the vehicle fleet now comprised of port. The development of the new technology. During 2020, shipments electric vehicles. It is amazing what MDT will deliver cost efficiencies for of wind turbines continued to move can be achieved in a short space of businesses across New South Wales through the port, and make use of time. In January, we became the first and contribute $2.5 billion in economic the significant on-site storage before port in Australia and New Zealand to activity across Australia, generating being transported to the build sites. be accredited under EcoPort’s Ports over 15,000 direct and indirect jobs. The port’s ability to store over-sized Environmental Review System (PERS), cargo enables customers to benefit Port of Newcastle is pleased to be by meeting stringent environmental from reduced double-handling of cargo providing competitive supply chain performance criteria. We are now and unnecessary truck movements. options for New South Wales importers benchmarked against the best ports The port has a reputation as a critical and exporters, as we all look to rebuild around the world. The Port has also part of the world’s leading thermal the Australian economy. joined forces with other leading Hunter coal supply chain. We want emerging businesses to coordinate a regional energy technology to have access to response to the United Nations’ (UN) a similarly competitive and efficient Sustainable Development Goals. supply chain.
MORE THAN A PORT
The East Coast’s deepwater trade gateway and an economic powerhouse for NSW and Australia.
Level 4, 251 Wharf Road +61 2 4908 8200 portofnewcastle Newcastle NSW 2300 [email protected] portofnewcastle.com.au
Shipping Australia Limited I Annual Review 2020 49 PORTS
Gladstone
Paving the way for a greater future in trade
By CRAIG WALKER, Acting Chief Executive Officer, Gladstone Ports Corporation
Facilitators of prosperity for our Nation Queensland has a seat at the global trade prosperity with sustainability, and the State of Queensland, Gladstone table. As we continue to innovate and intergenerational planning and global Ports Corporation (GPC) has a vital role collaborate with our customers and those trends has never been more important. in our national economy and is the global seeking opportunities to trade, on and With the three regional ports in Central gateway for trade in Queensland. Having off the coast of Australia – even through Queensland that account for 35 per cent such an influence in the greater value chain a global pandemic – positioning us as a of Queensland’s total exports and over and with global reach across a diverse barometer for how the economy maybe $34 billion in trade value, GPC has a great range of industries, we are preparing for shaping up. responsibility and influence on a large array the next wave of globalisation, new energy With the unprecedented year that of industry value chains. With an influence and new technology – ensuring regional has been 2020, balancing economic on 110, 000 jobs, our role not only in the
50 Shipping Australia Limited I Annual Review 2020 communities in which we operate but the energy through LNG exports, provide intergenerational planning, and how we economic multiplier impact is one we take a solid foundation to build on our can best service markets into the future. with the greatest respect. reputation as a reliable export gateway. The three-port footprint of GPC has an abundant availability of manufacturing A recent Deloitte article identified As one of four priority ports in and port land areas, a strong foundation decarbonisation and climate change Queensland, Gladstone has been of utilities, and an expandability of port as likely drivers for some of the most earmarked as one of the prime locations capacity that is unrivalled by any deep profound changes to the way we do for hydrogen development in the National water sheltered port in the southern business in our lifetime. The impacts Hydrogen Strategy, and the Queensland hemisphere. Our position on the eastern on our supply chains, asset values and Hydrogen Industry Strategy 2019 – seaboard along Australia’s northeast market disruption are arguably being 2024, due in part to GPC’s geographical shipping route, positions our ports as felt by severe climate-related events. characteristics, local energy demand effective gateways with their proximity to Economic forecasts are also increasingly and infrastructure. GPC is renowned northern hemisphere markets. reflecting these impacts, including throughout the Asian economy for being related factors such as carbon pricing the facilitator of reliable energy for over At GPC, we are willing to lead. On the initiatives, the changing dynamic for 70 years, with our overseas customers verge of unprecedented opportunity, we fossil fuels and renewable energy. As we seeking to continue this relationship are readying not only our communities, keep informed of these market trends, through a more diverse energy spread, but Queensland and the nation, to take GPC continues to monitor our role in over the forward 70 years and beyond. full advantage of the future. We are energy transition as we experience shift inherently aware of the important role around the global economy to the E7 The past 50 years in manufacturing, that we play as the custodians to one economies. GPC is well positioned has been dominated in competition of our nation’s most valuable assets, to service the emerging and growing in regions with lower labour cost, and look forward to a legacy that we E7 – China, India, Brazil, Mexico, however, as technology and automation will create for future generations. Our Russia, Indonesia and Turkey, offering exponentially advances, manufacturing ports are such vital infrastructure, with a significant competitive advantage costs may potentially become less of more than 92 per cent of the world’s for growth and the development of a price point differentiator, with cost to trade via our oceans, it is imperative we new industries. Our position in the market having a greater influence. With remain focussed on the future and create steelmaking supply chain through our this transition, GPC will explore our key further prosperity for our shareholders, metallurgical coal exports and gas strategic advantages as we focus on customers and communities.
Shipping Australia Limited I Annual Review 2020 51 PORTS Brisbane
Australia – meeting the demands of global vessel size growth BY ROY CUMMINS, Chief Executive Officer, Port of Brisbane Pty Ltd
There has been a lot of And yes, shipping lines have had Quite simply, Australia’s population and discussions with us and other ports the seaborne trade it generates, does discussion in Australia recently regarding 14,000 TEU vessels. not reach the volume required for ULCS. regarding the future of ports After all, a ULCS only produces lower unit This is not surprising – the major east- costs if it is full most of the time. Even on and, specifically, the future of west routes in the northern hemisphere the most optimistic economic forecasts, have welcomed, prior to COVID that is, vessel size in Australia and the it still doesn’t stack up, even over the a number of Ultra Large Container Ships capacity of ports to cater for medium term, and many in the industry (ULCS), or vessels with a capacity of are pessimistic about ever seeing them that growth. more than 20,000 TEUs, moving from at all. Think of the fate of the A380 in the hub port to hub port. This means that, in aviation industry, as an analogy. time, the new global ‘workhorses’ 14,000 It shouldn’t come as a surprise to hear TEU vessels, are likely to be redeployed The jury is still out on how soon 14,000 that while some stakeholders appear to on the lower volume north-south routes, TEU vessels will be the norm, however, be discovering this issue now, the ports of which the Australian east coast is one. given the investment in these vessels by the shipping lines, it is conceivable that sector has been planning for this for Here at the Port of Brisbane, we have they will be regular callers in Australia. years. proven via simulation from our industry Such vessels should offer the balance leading NCOS Online technology that we Fundamentally, ports are infrastructure between efficient direct services along can already receive a 366 metre vessel, businesses. It is up to us to invest in the the Australian east coast, with higher which is generally the length of such infrastructure required to facilitate the levels of utilisation. activity and growth of our customers. ships. In fact, a 2019 analysis showed that Port of Brisbane was capable of To force ports to cater for ULCS when On the waterside, it goes without saying handling approximately 85 per cent of the demand is not there, or even well ahead that shipping lines are key customers for international container fleet. of any potential demand, will lead to ports, and therefore understanding their two things: huge cost increases across Regular visits under all conditions would, needs – now and emerging – is crucial to the supply chain, and unnecessary of course, require additional investment in our own planning and investment cycles. environmental impact. channel management, but this is already Indisputably, the growth in vessel size, central to our investment plans. There is always a place for thoughtful, globally and here on the Australian east constructive debate, but it has to be But does global investment in ULCS’, coast, is one of the most important based on fact. And it must involve largely for northern hemisphere east- factors we must take into consideration. the two groups that have worked west volumes, mean Australia can And there is no doubt that the size well together over decades to ensure expect to see them soon? Will we be of vessels deployed to Australia has Australia’s supply chain can meet bombarded by 22,000, even 24,000 TEU changed significantly in recent times. global demands: the country’s biggest vessels in the near term? And does that container ports and the shipping lines When I first started as CEO of the Port of mean the major east coast container that call them. Brisbane in 2015, the 4,500 TEU was the ports should collectively spend billions daily ‘workhorse’. of dollars on channel deepening, wharf By working together, as the industry In December 2016, we received our expansions and associated upgrades to has admirably done in the past and first 8,500 TEU vessel, the Lloyd Don cater for ULCS’? continues to do so, Australia will not ‘miss the boat’, but instead be ahead of Carlos, before a regular weekly service It is our strong view, based on our the curve as one of this region’s leading from ANL began in 2019. Since then, engagement with all sectors of the trading nations. Maersk has deployed a 10,000 TEU maritime industry, that this is highly vessel to Australia, which berthed in unlikely. Brisbane in 2017.
52 Shipping Australia Limited I Annual Review 2020 Queensland’s economic powerhouse
Every year, approximately $50 billion in Port of Brisbane is delivering: international trade flows through the Port of • Approximately $466 million in infrastructure works Brisbane, connecting Queensland with the world. over the next five years As the Port grows, we are working with • World-leading technology enabling larger vessels customers and stakeholders to facilitate trade • Whole-of-business Sustainability Strategy and unlock supply chain potential to support • Five property precincts enabling better logistics, more jobs and boost the Queensland economy. connections and trade • Internationally-accredited environmental management.
Be part of Port of Brisbane’s growth story. To find out more about Trade and Property opportunities, please visit www.portbris.com.au
Shipping Australia Limited I Annual Review 2020 53 PORTS Townsville
The Port of Townsville is already the largest container and automotive port in Northern Townsville Australia, and October’s completion of the $2.5 million extension of the RoRo wharf on Berth 10, saw our efforts to become a more port has a attractive destination for car carriers swiftly rewarded. The wharf expansion represents an opportunity to welcome larger vessels, clear focus increase car import numbers and pass on major supply chain savings to the people of Northern Australia. on the future In July, we began construction of a BY RANEE CROSBY, new $4.5 million Truck Staging Area. Chief Executive Officer, Port of Townsville The project will improve supply chain efficiency, reduce congestion and improve safety within the port and along While every year has its defining moments, the interest of the city. The 100 metre port access roads, by allowing up to 2020 was unprecedented in terms of Liebherr Post Panamax ship-to-shore 20 triple road trains to safely queue world-changing, paradigm-shifting crane is the catalyst that will drive the just outside the port’s entrance. It will developments. Having navigated 156 port’s containerised cargo strategy into also cater for the break down and re- years of change, the Port of Townsville has the future. When assembly is completed assembling of road trains, and provide in its sights, a clear vision for the future. in the next few months, it will be new shower and amenities facilities and Townsville’s tallest structure. an outdoor rest area. This year the Port of Townsville released its Port Vision 2050, a 30-year sustainability The crane is part of $70 million of As our region develops new strengths in plan that sets the strategic course for investment to upgrade Berth 4 and broad acre cropping, mining and metal Australia’s largest exporter of base expand the cargo terminal area by 1.6 processing, advanced manufacturing and metals, sugar and live cattle, well into hectares to enable growth and handling renewable energy production, the Port of the future. The 12 strategic objectives efficiencies in containerised, general and Townsville is well positioned to respond and 27 initiatives across four priority project cargo. These works will allow the to demand, with well-planned supply areas of planet, community, people and port to grow our freight capacity over the chain infrastructure contributing to lasting prosperity, capture our vision and set a next decade, adding an additional two prosperity for Northern Queensland. clear roadmap for how to get there. million tonnes per year and increasing total port tonnage throughout capacity As the port grows, we have a sharp Over the past 12 months, we commenced by 20 per cent. focus on ensuring our developments several major infrastructure projects to and operations protect and improve prepare for significant trade growth. These improvements are already our surrounding environment and our proving attractive to shipping lines We are now well on the way to the communities. We are taking strong action seeking to strengthen their global biggest transformation in the Port of on climate change with a commitment to connectivity. Just in the past few Townsville’s 156 year history - the 30 being carbon neutral by 2025 and a climate- months Swire Shipping and COSCO year, $1.6 billion Port Expansion Project. positive, climate-ready port by 2050. SHIPPING Lines have both launched By completion, the expansion will add new fortnightly rotations between The outlook for the Port of Townsville is a new outer harbour, with widened and Townsville, South East Asia and bright and we are committed to delivering deepened sea channels, six new berths, China, demonstrating confidence in excellence for our customers and the 150 hectares of additional reclaimed the North’s export market and a solid land and associated infrastructure. communities we serve as Australia’s Port investment in northern Australia. The project will treble the port’s trade for the Future. capacity to 30 million tonnes per year. The first stage is the $232 million Channel Upgrade project, enabling the port to welcome larger container ships from 2,500 TEUs to 8,500 TEUs, as well as larger commercial, cruise and defence ships. All capital dredge material from the channel widening is being beneficially reused to form a new 62 hectare land area, with the 2.2 kilometre rock wall on track for completion in March 2021. Dredging works will commence shortly after, with completion late 2023. Another new piece of infrastructure at the Port of Townsville has captured
54 Shipping Australia Limited I Annual Review 2020 PORTS Flinders Ports
Planning for the future By RANDALL BONNER, General Manager Group Assets, Flinders Port Holdings
As we look back on a challenging year, The new purchases include new container Planning for the future it is worth acknowledging the resilience handling equipment at FACT and a 2020 was also a major year for Flinders of the ports and shipping industry new mobile harbour crane for Flinders Port Holdings as a group. In April, globally, not least in Australia. COVID Logistics at Berth 29. we launched our first group-wide induced disruption to cargo shipping was sustainability plan. The plan consolidates minimal, while there have been virtually Regional Ports action already underway across the no shutdowns of major ports. In South This year we also completed the $14.1 business, while setting out medium-term Australia, where we own and operate million redevelopment of the Thevenard and stretch goals across Environmental, the Flinders Adelaide Container Terminal Jetty on the State’s west coast. The Social and Governance (ESG) metrics. (FACT) and six regional ports, all of our work was crucially important, securing We believe a sustainable business is one operations have continued throughout the Thevenard’s long-term viability and that acts positively to achieve sustainable pandemic, which is testimony to our 700 providing sustainable fit-for-purpose outcomes, minimising harm, being staff and the pandemic response plan we infrastructure for what is South Australia’s at one with our communities and the were able to quickly implement. busiest regional port. environment. But we also understand it will play a fundamental role in ensuring Port Adelaide We have also been able to complete the financial resilience of the group in the the $1.2 million upgrade to Port While COVID has clearly dominated future. Lincoln, including lighting and electrical the year, we were able to continue or upgrades, wharf remediation, carpark Following from the launch of our complete all the major capital works redevelopment and accessibility Sustainability Plan, we are also close to projects we outlined in the Shipping improvements for the Parnkalla Trail, completing our first ever master planning Australia Annual Review last year. In Q1 which runs through the port. exercise. The result will be a 50-year we welcomed the first Post-Panamax master plan which will be transformational Vessels to FACT, after the successful The Department of Infrastructure in how we will operate in order to facilitate completion of the $80 million Outer Transport (DIT) and Flinders Port Holdings trade for South Australia, support Harbor Channel Widening. This was will also commence work in Port Pirie in industry, secure jobs, and protect the followed by several other complex first quarter of 2021. This work is centred environment. Around $25 billion worth infrastructure projects worth highlighting. around capping various working areas of of trade is moved across Flinders Ports the port, with a view to further reducing 2020 saw the continuation of extensive precincts each year, the equivalent of 24 air born dust particles around the site. redevelopment works at Inner Harbor. per cent of State GSP – we simply have The Harbor’s Berth 20 is being to ensure we are in a position to continue redeveloped for general purpose use Beyond the port gate facilitating that trade, and we are acutely and facilitating grain exporter, Cargill, During the last year, we also moved further aware of the crucial role we play in South at a cost of $4 million. Berth 18-20 is into consolidating our position as a vertically Australia’s economy. undergoing concrete remediation work integrated business. Flinders Warehousing Overall, we have had a strong year in with Phase 1 ($2.6 million) completed and Distribution (FWD) has expanded its 2020 but we are aware that the threat to and Phase 2 ($5.3 million) underway. services and has also become biosecurity business continuity from COVID remains. Both these projects ensure we align with approved. We can now provide even The goal in 2021 will be to continue our strategic objective of providing high faster turnaround for containers requiring delivering our long-term strategy while levels of service through our berths, with inspections, with our comprehensive keeping the systems and protocols in assured customer safety and longevity of approval of Accreditation Classes. In the place to keep our people safe, and trade Flinders Port Holdings assets. digital space, we have also started to look flowing. at decision support platforms to improve We have also invested in excess of predictive trade forecasting and artificial $7 million in new plant and equipment intelligence to support the optimisation of to ensure capacity and efficiency in container yard management. delivering services to our customers.
Shipping Australia Limited I Annual Review 2020 55 PORTS Melbourne
Investment certainty amid uncertain times; a skillful balancing act
By SHAUN MOONEY, Executive General Manager, Commercial, Port of Melbourne
In a year influenced heavily by a prevailing the country’s container trade volumes productive consultation with industry, negative COVID-19 narrative, it has been despite Victoria being severely impacted community and government, Port of reassuring to see the port supply chain by the global coronavirus pandemic, just Melbourne released the final version of deliver on keeping trade flowing, while also months after a bushfire disaster. The its 2050 Port Development Strategy, a keeping an eye on the future. response has shown more than ever that comprehensive roadmap that includes 10 the port freight sector is fundamental to major infrastructure projects and entails At Port of Melbourne this year, efficient the nation’s economic sustainability. capital expenditure of some $1.5 billion port operations have been maintained over the coming decades. despite the challenges. The port, It is equally important to look to future supported by its tenants and customers, growth, and make the necessary plans. Some key parts of the 30 year Port continued to handle more than a third of In October 2020, following extensive and Development Strategy are already
56 Shipping Australia Limited I Annual Review 2020 underway. Our Big Ship Strategy, which responds to the global trend of increased size and capacity of container ships, has already invested around $20 million to install new 150 tonne bollards at Swanson Dock East and West, and undertake an enhanced dredging programme. The $125 million Port Rail Transformation Project, the first major rail investment in a decade, will facilitate a significant long- term mode shift in container transport to rail, providing numerous industry and community benefits. Another crucial project will be the Webb Dock Freight Link, which will support increased throughput at Webb Dock, and play a key role in reducing truck congestion around Port Melbourne and the wider port precinct. As we move to a post-COVID recovery, this significant infrastructure will contribute to construction jobs, and drive further efficiencies in the supply chain. Combined with other off-port government investments, such as Inland Rail and the Port Rail Shuttle Network, the transformational benefits of rail expansion are becoming increasingly clear. It is especially important that these rail networks connect seamlessly into Australia’s largest container port. Port of Melbourne is working closely with the Victorian Government on the Port Rail Shuttle Network, which will deliver long awaited intermodal terminals in metropolitan Melbourne, and provide a much-needed missing link in Victoria’s rail freight network, helping to ease road congestion and delivering benefits for the environment. It should come as no surprise that targeted infrastructure investment is central to the 2050 Port Development Strategy. Spending in both on and off- port infrastructure initiatives ensures our supply chain is ready to accommodate growth. More broadly it can adapt to changing consumer, business, and port user behaviour into the future. The strategy, itself, details what this looks programme, but we will continue to like – investing to shift more freight to In any operating conditions, it is critical evolve and refine it with the industry, rail at the port, substantially expanding that the freight sector remains focused as new and additional information container capacity, particularly at Webb on the bigger picture, delivering the right becomes available. Dock, and accommodating larger infrastructure to drive efficiencies in the supply chain so it continues to be the vessels in line with global shipping Amid ever-changing and often-times cornerstone of the nation’s economy. trends. United, these initiatives will uncertain market dynamics, such as enable the port and the wider supply The 2050 Port Development Strategy those in 2020, our clearly articulated chain to respond to Victoria’s future provides a solid foundation for the plan creates a certainty pathway for a trade needs. Port of Melbourne’s future investment successful future.
Shipping Australia Limited I Annual Review 2020 57 PORTS Melbourne
Victorian Ports Corporation invests in the future
By RACHEL JOHNSON, Chief Executive Officer, Victorian Ports Corporation (Melbourne)
Victorian Ports Corporation Victoria’s two largest trade gateways, the we have felt its effects, too. But we ports of Melbourne and Geelong, and our are confident that cruising will return, (Melbourne) (VPCM) performs own cruise terminal at Station Pier in Port gradually, to full strength, and we are a critical role in maritime Melbourne, rely on us to keep Port Phillip ready to support the industry. open for business every day of the year. transport, ensuring the safe and The prolonged break in cruise ship efficient navigation of vessels in visits has given us more time for our Cruise shipping at Station Pier port of Melbourne waters. “between seasons” maintenance on the The COVID-19 pandemic has severely heritage-listed Station Pier structure. affected the cruise industry worldwide, We have continued our ongoing pile and as the manager of Station Pier rehabilitation programme and other
58 Shipping Australia Limited I Annual Review 2020 routine maintenance works, so the pier COVID-19 lockdowns and the associated As the appointed Committee of continues to meet our customers’ needs. challenges. All work sites continue to Management for the lighthouse and the operate under strict health protocols adjacent 1960s foghorn shed, we are New vessel traffic service system in line with the Victorian Department of responsible for the management and Health and Human Services guidelines. upkeep of both heritage-listed buildings. To enhance safety and efficiency for all We have a conservation management users of port of Melbourne waters, we The project is on schedule and training of plan, approved by Heritage Victoria, are installing a new, world-leading vessel VTS officers is happening in parallel with that controls the maintenance of the traffic service (VTS) system. normal port operations. Since September buildings’ heritage character, their use 2020, elements of the new system are It includes major software and hardware and even the paint colour scheme. gradually coming online. This involves upgrades to our Port Operations Control comprehensive testing and a detailed, During 2020, we undertook a major Centre (POCC) in Port Melbourne, as phased rollout to ensure continuity of maintenance programme on the exterior well as sensors and data collection VTS services. Project completion is of the lighthouse and the foghorn shed. sites around the Bay. It will produce scheduled for early 2021. We repaired and replaced various higher quality data, allow better control components and completely repainted of information and, by integrating with The 24-hour VTS system consists of the outside of both buildings. other existing systems, bring overall Melbourne VTS, covering the north of Port improvements in port operations, under Phillip Bay and Lonsdale VTS covering the This will ensure both structures maintain the supervision of VPCM’s port of south of the bay. Lonsdale VTS is operated their important roles in the continued Melbourne Harbour Master. from either the POCC in Port Melbourne or safe navigation of vessels in and out of the Point Lonsdale Lighthouse. Port Phillip, through The Rip. There are also direct benefits for the VTS officers managing the vessel movements. Ergonomic benefits of the Point Lonsdale Lighthouse Conclusion new setup include better user interfaces, maintenance Our investment in infrastructure and workstation layouts, upgraded sensors The Point Lonsdale Lighthouse sits at the systems to enhance service, reliability and improved information displays. summit of a headland on the western side and safety for vessels in Port Phillip of the entrance to Port Phillip. Built in 1902, ensures we will continue to meet the Installation of the system started it is a key navigational aid for ships transiting changing needs of our customers. in June 2020 and, as an essential the treacherous Rip at the Heads. service, continued throughout Victoria’s
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Shipping Australia Limited I Annual Review 2020 59 PORTS Geraldton
a significant economic boost for the Mid West. The COVID-19 pandemic restrictions led to the cancellation of all cruise visits for the remainder of A year the year. Prior to this however, we achieved another cruise milestone in 2020 in hosting a double-header on transformation 13 February 2020, with the Seven Seas Navigator and Vasco Da Gama, both berthing on the same day. A significant and revitalisation milestone for Geraldton and a display of confidence by the cruise industry in By Dr ROCHELLE MACDONALD, Geraldton as a cruise destination. Chief Executive Officer, Mid West Ports Authority 2020 had a strong focus on the importance and awareness of Headlines in 2020 were dominated by was a significant improvement in our mental health. This focus extended the COVID-19 pandemic, and its impacts reputation with the community and both internally and externally of the and reverberations have been felt around our Fishing Boat Harbour customers, organisation, recognising the impacts this the world at all levels. Mid West Ports reflecting our ongoing commitment in can have on both our organisation and Authority (MWPA) faired reasonably this area as we transition to an outwardly our community. facing, increasingly transparent and well during the peak of the pandemic Through staff led initiatives we fundraised and continues to adapt to the changed approachable port. $11,000 for Headspace Geraldton, a landscape as we move through the In July, MWPA’s Geraldton Port Master free mental health service for our local recovery phase. Plan (PMP) was launched by the Minister. youth. The port also hosted ‘Outside the We are committed to developing a It considers the future development Locker Room’ to Geraldton twice during resilient and sustainable business for the required to facilitate trade and growth in our the financial year, a road show initiative future, for the direct benefit of Western port is undertaken in a coordinated, and bringing awareness and education of Australians. We recognise that growing sustainable manner, which will enable us to mental health. We took this programme and transforming our business requires operate in balance with the environment, to our staff, stakeholders, schools and continual investment in delivering value while providing economic benefits for our the wider community. to our stakeholders, community and community and shareholders. staff, and while 2020 offered plenty Internally, we implemented a number We undertook considerable consultation of diversion, it also offered plenty of of initiatives specifically for our staff, in the development of the PMP, and this opportunity to recognise and champion to assist in the management of their resulted in a comprehensive strategic this value. wellbeing during the COVID-19 investment guideline for our future, which pandemic, including provision of a mental Our ability to adapt in 2020, by encompasses input from all our internal health toolkit, resilience training, access and external stakeholders, and the developing and implementing protocols to professional videos on how to deal community in which we operate. with the health, safety and wellbeing of with stress and anxiety, and ongoing our people at the forefront, allowed us to In April 2019, we commenced stage one promotion of access to our Employee continue trade throughout the pandemic of the Port Mooring Optimisation Project Assistance Program. and ensure our role in providing (PMOP), commissioning a feasibility economic stability and development in 2020 saw the business transform as study into the optimisation of mooring the region was maintained. a result of last year’s strategy reset arrangements at the port. The scope of and organisational restructure. With a Confirming our prioritisation of improving the study was to develop options and focus on revitalising and transforming our communications and building our layouts which could improve mooring relationships, in early 2020 we invested efficiency and processes at the port. the organisation to be a contemporary in a Stakeholder and Community Survey Stage 1 of the project was delivered in and strong port which celebrates to gauge our reputation and satisfaction May, a report recommending various its successes and benchmarks its levels, in addition to providing a options and associated costs. Detailed opportunities. benchmark from which to identify hydrodynamic modelling was also As we move in to 2021 we continue opportunity and develop initiatives for undertaken to assess and develop our commitment of being BOLD supply collaboration and consultation. wave thresholds for our shore tension chain enablers for the sustainable unit use. Stage 2, which will involve The results of this survey were extremely long-term future of regional Australia, detailed design of high priority mooring pleasing, with the added benefit of also identifying and developing innovation infrastructure is now underway. identifying opportunities for improvement. opportunities and facilitating strategic Our reputation and satisfaction scores The port facilitated the visit of seven and mutually beneficial partnerships achieved 70 per cent and higher, across cruise ships to our city up until 1 with our stakeholders and the all three segments being community, March 2020, welcoming thousands of community in which we operate. May it suppliers and customers. Most notable people to our region, and providing be our most successful year yet.
60 Shipping Australia Limited I Annual Review 2020 Providing a
sustainable Mid West Ports
gateway for trade Fremantle
Shipping Australiaa Limitedn I Annuald Review t 2020ourism. www.midwestports.com.au61 PORTS The Pilbara
The port of Port Hedland
A year transformation and revitalisation
By ROGER JOHNSTON, Chief Executive Officer, Pilbara Ports Authority
Pilbara Ports Authority (PPA) is the A recent ACIL Allen study found the COVID-19 pandemic, it is important world’s largest bulk export port authority, port of Port Hedland and the trade for the ports of the Pilbara to perform at encompassing the ports of Ashburton, facilitated through the port in 2018/19 optimal levels, and the record 717.2 million Dampier and Port Hedland in the north boosted Australia’s GDP by more than tonne throughput for the 2019/20 financial west of Western Australia. In the 2019/20 $64 billion, generated more than 133,000 year was a very credible performance. full-time jobs across the country and financial year, PPA reported a record delivered almost $4 billion in taxes to The port of Port Hedland total throughput 717.2 million tonnes in throughput across the Federal Government. These figures was 538 million tonnes, an increase of its three ports. would have been even higher if the study five per cent on 2018/19. In June 2020, The ports of the Pilbara are the engine had extended to include the ports of the port set a new monthly throughput record of 52.3 million tonnes. room of the Australian economy, which Ashburton and Dampier. is an opportunity and responsibility we As Western Australia and Australia At the port of Dampier, total throughput take seriously. pursues economic recovery from the for the year was 167.9 million tonnes,
62 Shipping Australia Limited I Annual Review 2020 a three per cent decrease on 2018/19 included a new shipping control tower facilitate non-iron ore trade, including due to the impact of Tropical Cyclone equipped with world-class Vessel cattle and lithium. Imported products Damien, which crossed the Pilbara coast Traffic Services technology, and used for processing, including soda in February 2020. the replacement of land and marine ash, caustic soda and sulphuric acid are navigation aids. Most of the product that passes through increasing, as lithium mining and other the ports is high grade Pilbara iron ore, A $120 million Channel Risk and processing operations are developed in destined for China. Other cargo includes Optimisation Project was also the Pilbara. LNG, salt and lithium. completed, which included optimising Both the ports of Dampier and Port the depths of the 42 kilometre shipping In the COVID-19 world, demand for Hedland have recently been awarded channel, so it could be safely navigated Australian iron ore is strong, as long-term by deeper drafted vessels. The project, new biosecurity approvals that allow construction projects are used to keep along with other technologies already them to be first points of entry for direct economies moving. in use at the port, helped increase the trade into Australia, and to accommodate China is using big building projects like port’s total shipping capacity by 6.9 per container cargo. cent to 617 million tonnes per annum. bridges and skyscrapers to drive its And, at the port of Dampier, PPA has economy. The use of steel is high and the The port of Port Hedland has a uni- been progressing opportunities to stockpiles of iron ore in China are low. directional shipping channel with a wide diversify trade through the port beyond The ACIL Allen report predicted iron ore tidal range. The maintenance dredging the existing key cargoes of iron ore, LNG, through the port of Port Hedland would and Tidal Model Study combined, have salt and condensate. A new multi-use increase to 547.5 million tonnes in realised an extra 71 centimetres of draft cargo berth is planned to support a 2022-23, before easing to an average within the channel. This extends the major urea plant, which will also open of 545.2 million tonnes over the period vessel sailing window for larger vessels opportunities for other cargoes and to 2028/29, which would deliver an by almost an hour on each high tide, cruise ships. extra $26.2 billion to regional, State meaning we can increase the number and national economies and pay of vessel departures on each tide from PPA has also made progress on the an extra $21 billion to the Western six to eight, and ultimately, increase the new greenfield ports of Balla Balla, Australian and Federal governments in tonnage exported. Cape Preston West, Cape Preston East, taxes and royalties. Beyond iron ore, PPA is continuing to Urala and Anketell. These future ports In 2019/20 a series of improvement pursue further growth and new trade will further support the ongoing growth projects were completed at the port of opportunities. At the port of Port of small and large miners in Western Port Hedland, to help deliver safe and Hedland, a new general cargo facility Australia, agribusinesses and other efficient port services. The projects and logistics hub at Lumsden Point will regionally based industries.
An iron ore vessel loads at the port of Port Hedland
Shipping Australia Limited I Annual Review 2020 63 INTERNATIONAL ORGANISATIONS CLIA
A year like no other By JOEL KATZ, Managing Director, Cruise Lines International Association (CLIA) Australasia
2020 has undoubtedly been a year internationally, to establish passage for the communities we visit. Through like no other, one that has brought ships and repatriate crew. extensive measures like this, we will extraordinary challenges to our industry not only put safety first but also provide Though our operations had ceased, the that we’ve never had to confront before. confidence to governments and health cruise industry’s response to COVID-19 It’s an impact that has been felt across authorities worldwide, as we work continued with urgency. As an industry, the many businesses that help make up towards resumption and recovery. CLIA and its cruise line members our wider cruise community, including committed to the development of Together, our cruise lines have the extended cruise supply chain, from extensive global measures to uphold examined every area of their operations the travel agents and tour operators, safety when the time came to resume and each individual step in the cruise to the farmers, winemakers, logistics, sailing, enlisting the help of some of the experience. As a result, we are working ports and destinations, that support most esteemed medical leaders in the towards global health measures that 18,000 jobs across our economy and world, and engaged closely with health will extend throughout the entire cruise deliver more than $5 billion in economic authorities internationally to develop journey – from the time of booking, impact to Australia each year. protocols that would be the most through to the time a passenger returns Despite this, our industry showed comprehensive of any part of the travel home. itself to be extraordinarily swift and sector. These global protocols are not only responsible in the face of this crisis, This process has included working essential for the health and safety often acting ahead of governments and closely with the European Union, which of all on board our ships. They are other industries, as the virus took hold has paved the way for operations to also the most important challenge we around the world. resume in parts of Europe under strict need to meet to restore confidence Within hours of the WHO declaration controls and testing regimes that are in cruising. They are also the key to of a global pandemic, CLIA cruise lines already providing important insight for economic recovery across our industry had agreed to extensive new screening other regions worldwide, including with and throughout the many destinations protocols to be implemented around the US Centers for Disease Control and we visit. the world in response to COVID-19, Prevention, which has resulted in the With a global set of core measures in becoming the first industry to do so. announcement of the CDC’s Framework place, we will be in a position to expand for Conditional Sailing. As we work to As the virus affected other countries into a phased and carefully control operationalise a path forward, similar and regions, these protocols were resumption in Australia, offering local advances have been made in other extended and enhanced multiple cruises for locals while international parts of the world, including parts times, drawing on the advice of health borders remain closed. Though this of Asia and the South Pacific, where experts and authorities globally. These will be limited at first, it will provide operations have begun under strict actions went well beyond those of other the early stages of a responsible and protocols. industries and other parts of the travel sustainable journey into the post- sector and cruise lines, then took the There is still much work to be done, COVID era, and towards our longer- difficult and unprecedented decision to but we are now closer than ever term prosperity. voluntarily suspend operations globally. to overcoming obstacles that only What followed was a mammoth months ago might have seemed operation as cruise lines worked around insurmountable. the clock to bring passengers home. The cruise sector is the first industry As borders closed and government worldwide to make a commitment to restrictions brought further challenges, 100 per cent testing of passengers and cruise lines fought hard for many crew, and this is a sign of the lengths months, often in partnership with we’re going to in order to uphold CLIA and other maritime organisations the health of passengers, crew and
64 Shipping Australia Limited I Annual Review 2020 INTERNATIONAL ORGANISATIONS ICS
facilitate crew changes. In November 2020, these were endorsed by a virtual meeting of the IMO Maritime Safety Committee – ironically under Australia’s chairmanship – with a strong recommendation that they should be implemented by governments Blimey – globally. But there are still few signs of any significant improvement in Australia, which has even refused to allow seafarers to disembark for emergency medical what a year! treatment, something, quite frankly, for which Australia should be ashamed. By SIMON BENNETT, COVID-19 notwithstanding, the normal Deputy Secretary General, International work of ICS continues, representing the Chamber of Shipping (ICS) global industry with its global regulators. This includes work on the reduction of the industry’s CO2 emissions, to which ICS COVID-19 means 2020 will be long families for many months at a time. At remains totally committed. remembered. This is certainly true the end of 2020, hundreds of thousands In November 2020, IMO member states for shipping, which exists to serve seafarers are still unable to be repatriated, agreed to give further consideration to the trade and the maintenance of global continuing to serve on board their ships radical proposal from the shipping industry living standards. Regrettably, this is for many extra months beyond their for the establishment of a US$5 billion something which many governments contracted tours of duty. This situation, global fund to accelerate the research and often take for granted, even during this quite simply, is outrageous. development of zero-carbon technologies, time of continuing crisis, when the role Patience throughout the shipping industry to be co-ordinated by an International of maritime transport in supporting the is wearing thin. It is almost a year since Maritime Research and Development Board. resilience of national economies is more restrictions on movement and travel by important than ever. The intention is to enable the shipping seafarers were imposed by health authorities. industry to decarbonise completely, in In spite of the many restrictions imposed With the risk of fatigue, and the anxiety of line with the ambitious CO2 reduction on shipping by local authorities – and being unable to return home, many ships’ targets agreed by IMO. The fund is to Australia and its State governments have crews are near breaking point, with potentially be financed by the industry itself, via a hardly covered themselves in glory – ships serious implications for maritime safety. mandatory contribution per tonne of marine and seafarers have continued to keep To be clear, this intolerable situation is fuel purchased for consumption. This is a trade moving, transporting the energy, entirely due to the continuing failure of serious and detailed proposal that has taken food, raw materials and manufactured governments, including Australia, to the global industry three years to develop. products on which 21st Century life meet their obligations under international All that is required to make this happen is depends. This constitutes some eleven law and take the measures needed political will from governments at IMO, and billion tonnes of cargo a year, or 1.5 tonnes to facilitate crew changes and the it is greatly hoped that Australia will join for every person on the planet. repatriation of seafarers. others, such as Japan, Korea, Singapore But it is difficult to exaggerate the and many European States, in getting In April 2020, in the vacuum created challenges facing ship operators, in behind the industry’s initiative. by the suspension of International particular with respect to the health and Maritime Organization (IMO) meetings, Finally, while somewhat overshadowed by welfare of ships’ crews, many of whom, ICS co-ordinated the development of a COVID-19, a most important development even under normal circumstances, work comprehensive Framework of Protocols to this year has been the very successful thousands of miles away from their global switch to low marine sulphur fuel Shipping’s CO2 emissions have decoupled from global trade growth on 1 January 2020. The impressive effort by all industry stakeholders to make this monumental changeover a worldwide success has largely passed unremarked, but is testament to the effectiveness of IMO as shipping’s global regulator. As we move into ICS’s centenary year (Maritime Industry Australia Limited being one of ICS’s founding members back in 1921, while SAL is an important Associate Member) this will hopefully prove less challenging, as we continue to work with governments, including Australia, to help shape the future of shipping and the recovery of the global economy.
Shipping Australia Limited I Annual Review 2020 65 INTERNATIONAL ORGANISATIONS WSC
The first hands-on resources, for the use of carriers, stevedores and shippers, are a ‘Quick Guide’ to the IMO/ILO/UNECE 2020, a sponsored Code of Practice for Packing of Cargo Transport Units (the CTU Code), together with a Checklist for those challenging undertaking the packing of cargoes in freight containers specifically. Since 2011, the World Shipping Council year – in review (WSC) has undertaken a survey of its members to accurately estimate the By JOHN BUTLER, number of containers that are lost at sea. Chief Executive Officer, World Shipping Council Based on the twelve-year period (2008- 2019) surveyed, the WSC estimates that there were on average 1,382 containers The World Shipping Council (WSC) benefits of the regulation, and to ensure a lost at sea each year. Download the full is the united voice of liner shipping, level commercial playing field for carriers. report at - https://www.worldshipping. working with policymakers and industry org/Containers_Lost_at_Sea_-_2020_ groups to shape the future growth of This year also saw the continuation of our Update_FINAL_.pdf a socially responsible, environmentally work over several years of developing a WSC is a co-sponsor of a submission to sustainable, safe, and secure shipping platform for accelerating research and IMO’s Maritime Safety Committee (MSC) industry. We are a non-profit trade development of the zero carbon fuels 102 by the European Union, proposing association with offices in Brussels, and technologies necessary to meet the mandatory reporting of containers lost at Singapore and Washington, DC. IMO’s longer-term GHG reduction goals. The proposal, supported by a united sea, and will continue to advocate for the The container, RoRo and car carrier shipping industry, for an industry funded early implementation of an effective and members of WSC provide approximately US$5 billion International Maritime practical requirement. 500 regularly scheduled services, linking Research and Development Board As invasive species continue to be an the continents of the world. Collectively, (IMRB) was positively received by the issue globally, and a special concern these services transport about 60 per IMO MEPC75 in November, and will now in Australia, we continue to engage cent of the value of global seaborne be further developed. We look forward actively and constructively in raising trade, and more than US$4 trillion worth to working closely with governments awareness and promoting reasonable of goods annually. towards starting up the IMRB in 2023. measures, based on risks, to minimise This year, the WSC celebrates 20 years Carbon taxation for shipping is another pest contamination of containers and of activity. Together with our member hot topic in several parts of the world. their cargoes. This includes participating companies we have, over this time, We have engaged with the EU regarding in the work of joint government-industry forged a close working relationship with their proposal to include shipping in the efforts like ICCP’s Sea Container Task the International Maritime Organization European emissions trading scheme to Force (SCTF) and the North American (IMO), the European Commission, highlight, among other things, the trade Sea Container Initiative (NASCI). national and regional governments, and policy concerns associated with the international organisations to develop concept of taxing activities outside of Enabling crew changes new laws, regulations and programmes EU borders. As with all maritime policy, The plight of seafarers, stuck at sea due designed to better secure international we firmly believe in a global rather than a to national restrictions, is a close-to- maritime commerce, and the thousands regional approach. home example of the humanitarian toll of supply chains that importers and of COVID-19, and performing regular exporters around the world depend upon. Working for container safety successful crew changes continues WSC and its members continue to to be a problem. Ship crews must A big year for climate and environment advance measures to improve the be recognised as essential workers, 2020 saw a monumental step in reducing safe transportation of containers, and measures must be put in place by the environmental impact of shipping, as including addressing the scourge of mis governments to enable crew changes. the 0.5 per cent cap on sulphur emissions and non-declared dangerous goods. WSC engaged with other stakeholders in from marine fuel entered into force. Together with The Container Owners a global task force to develop protocols, Thorough preparations by ocean carriers, Association, the Global Shippers Forum, subsequently adopted by the IMO, for bunker providers and regulators, ensured the International Cargo Handling Co- countries to follow. As 2020 ends, many a smooth implementation, testament to ordination Association and the TT Club, countries have failed to act to remove the industry’s ability to make big changes we are working on a range of activities to the obstacles impeding crew changes, for sustainability. WSC was one of the further the adoption and implementation despite repeated pleas from industry and principal organisations behind the carriage of crucial safety practices throughout the seafarers – together we must continue to ban adopted by IMO, which has been global supply chain. work on solving this challenge. key to achieving both the environmental
66 Shipping Australia Limited I Annual Review 2020 Shipping Australia Limited I Annual Review 2020 67 INTERNATIONAL ORGANISATIONS FONASBA
of the ship agent becomes even more important, and we are grateful to all our members for continuing to provide this vital service under difficult conditions. It Finding is a tribute to all concerned that global shipping continued to move the goods essential to keeping us all fed, watered, strength through clothed and warm. Is it too much to expect that this global pandemic may lead to a greater appreciation amongst necessary change the general public of the value of our industry? By JONATHAN WILLIAMS, Looking back to happier times, we Secretary, Federation of National celebrated our 50th anniversary in good Associations of Ship Brokers and Agents style at the Miami Annual Meeting, where we were delighted to welcome Rod and Sue Nairn to the FONASBA family. The Normally, I write this article after the October 2020, issued more than 70 format of the meeting was more open FONASBA Annual Meeting. Like every COVID-19 information bulletins, and and interactive than previously, based other organisation however, that has participated in a number of international more on discussion panels than formal all changed, and for the first time ever, actions to bring the impact of the presentations and many of our first-time our physical meeting was cancelled pandemic on the shipping sector, and attendees found this an excellent way to and will move online, but hopefully most importantly on seafarers, to the meet other delegates and get immersed only for this year. Personal contact is attention of regulators and governments in the discussions. These changes will the lifeblood of our industry and whilst worldwide. We fully share the views be carried forward to Antwerp. expressed so forcefully by Shipping we could not meet in Genoa, we will One of the topics under discussion Australia that in spite of the best efforts reconvene in Antwerp in October 2021. was the revision of the UNCTAD Minimum Standards for Ship Agents, originally drafted in 1988. It continues to be referenced by regulators, and the occasion of its 30th anniversary saw FONASBA revise the text and present it to UNCTAD and UN-CEFACT for consideration. The new draft expands the scope to include ship brokers, references the FONASBA Quality Standard and our Code of Conduct, and updates and modernises the text. Having now passed the public consultation stage, the final draft is scheduled for approval at the UN- CEFACT plenary meeting in April 2021. FONASBA Annual Meeting 2019, Miami It has proven to be an interesting project to work on, and one that will further acknowledge FONASBA and its work on behalf of ship agents and ship brokers. The implications of COVID-19 on the of IMO, ship owners, manning and global shipping industry have varied crewing agents, ship agents and unions Elsewhere, the FONASBA Quality Standard widely, from catastrophic (especially working together, the crew change now covers 44 countries and more than for cruise operators or seafarers unable crisis has seen red-tape, bureaucratic 580 companies, Greece has re-joined the to return home after an extended obduracy and an unwillingness to Federation as Full Member, Colombia as a contract) to an opportunity to take a define them as essential workers, Candidate Member and Albania, Estonia, longer view, refocus the business and condemn crew members to be trapped Lithuania as Associate Members, taking embrace new technologies. Any crisis on vessels for significantly extended membership to 64 countries in total. accelerates technological change periods of time, whilst others are stuck Furthermore, over 300 students have and many of the new processes at home, unable to join their ships. The taken the FONASBA Agent Diploma. So, and the way we do business have strain has been immense, both for the in spite of everything that we have all been been changed for ever, hopefully seafarers themselves and their families, through, FONASBA continues to operate for the better. Like other member leading to a significant increase in as normally as possible, and to serve the associations, we have continued to suicides on board ships. Despite this, needs of its members, and the global support members remotely. it is heartening to see how the whole ship agency and ship broking community, Additional to the usual services to maritime sector has pulled together to albeit in a different way. We sincerely hope members, we have, to the end of try to get crew changes restarted. At this will get slightly easier in the coming times such as these the pastoral role months.
68 Shipping Australia Limited I Annual Review 2020 INTERNATIONAL ORGANISATIONS
FIATA
Adapting to exceptional times
By Dr STÉPHANE GRABER, Director General, International Federation of Freight Forwarder Associations
Many will agree that 2020 was Despite going through major internal International Seafarers’ Welfare and restructuring (called the ‘reset Assistance Network (ISWAN). challenging, to say the least. programme’) – which was decided in In addition, FIATA provided guidance The COVID-19 pandemic 2019 to reinvigorate the organszation and clarification on key legal topics and make it fit for the next century disrupted all sectors and such as force majeure, as well as the – FIATA prioritised, early in 2020, inclusion of COVID-19 specific clauses economies around the world, knowledge and information sharing. in bill of lading. These concepts and its impact will be felt The launch of a dedicated COVID-19 rapidly came to the forefront as the online platform provided members with in the industry for some coronavirus outbreak, turbulent supply relevant tools and resources to use in chain, and governmental restrictions time. As the only multimodal their national contexts. Serving about to curb the spread of COVID-19, all international organisation 6,000 members globally, from national cast doubt on companies’ abilities freight forwarding associations to small representing air, road, rail and to comply with their contractual and medium-sized enterprises, FIATA’s agreements. sea freight transport, FIATA objective was – and is – to remain stepped up to the challenge active and engaged to deliver top In the same spirit of ensuring well- by advocating policies that quality service to freight forwarders. functioning and fluid supply chains, FIATA continued advocating demurrage From the outset, FIATA’s priorities ensure – now more than ever and detention charges be reasonable were to provide practical advice and – the well-functioning of the and proportionate. Recognising the unify all actors in the supply chain, exceptional times that shipping lines supply chain. to support the continued functioning are operating in, FIATA encouraged the of the world’s supply chains during need to ensure that such charges meet such unprecedented times. This their intended purposes of incentivising included encouraging a consistent orderly movement through ports global response to the recognition and and terminals, and are not arbitrarily facilitation of freight forwarding and enforced when circumstances are supply chain activities as essential outside of the importer’s control. services, noting the fundamental role FIATA therefore welcomed the US played by the transport and logistics Federal Maritime Commission’s sector to move crucial goods to where (FMC) Final Rule on Demurrage and they were most needed, throughout the Detention as providing clarity on the crisis and beyond. reasonableness of demurrage and Here, the tremendous efforts of crew detention practices. FIATA released members throughout the challenges of a toolkit for its members on the FMC this year, merit particular recognition. final rule to highlight the key elements FIATA joined the International Maritime of the FMC’s work in this area, Organization (IMO), International encouraging greater collaboration Transport Workers’ Federation (ITF), in their national contexts, with all World Shipping Council (WSC), and stakeholders for the benefit of the others, to call upon governments supply chain as a whole. to take urgent action to recognise Despite living in an unparalleled seafarers as key workers who are era, FIATA has accomplished many eligible to transit and be repatriated. milestones this year. Fuelled by FIATA further provided support to the
Shipping Australia Limited I Annual Review 2020 69 its reset programme initiative to Training and education activities are supply chain optimisation by improving reenergise the organisation, FIATA is being reinforced through the creation of interoperability with a systemic approach. determined to use its position as a the FIATA Logistics Institute, which will Finally, FIATA works at the international key global freight logistics actor to enhance standards and certifications, level to serve the interest of its advocate trade facilitation policies. increase digital learning, and cater to a members, and is looking to collaborate To do this, FIATA is embracing younger generation of freight forwarders. with all supply chain stakeholders digitalisation in the industry by At FIATA, we believe that the greatest to further develop approaches for developing and implementing assets are the future generations of freight the good functioning of the supply its digital strategy for freight forwarders and ensuring a high-quality chain, in the common interest of our forwarders to exchange secured succession, while promoting diversity is societies. In Australia, for example, and authenticated data using key for the freight forwarding industry. FIATA noted the empty container their everyday tools. Intellectual FIATA also recognises the need to work management crisis in Sydney and property, such as the widely used on sustainability in logistics that adopts a called for more cooperation between FIATA Multimodal Transport Bill of cross-sectional approach with all modes freight forwarders and shippers to Lading, is also being reviewed to of transport. To build a sustainable supply avoid endangerment of the well- ensure copyright is not infringed, and chain, this must be both resilient and functioning of the supply chains. No its use is done in a controlled and efficient, to ensure that it can continue matter the global context, FIATA will secured manner, strengthening its to function well in the occurrence of continue providing guidance, best resilience to fraud. It is envisaged unforeseen events to deliver all goods, practices, tools and support to its that these initiatives will strengthen including essential goods. The inclusion members to help them be better communication, security and of sustainability principles in global supply equipped to operate at the national transparency for all actors in the chains begins with a collective effort to level for the century to come. supply chain. learn from COVID-19, and work towards
70 Shipping Australia Limited I Annual Review 2020 MARITIME LAW AND INSURANCE AMTAC
International Commercial Arbitration and COVID-19 By GREGORY NELL SC, Chair, Australian Maritime and Transport Arbitration Commission
2020 will be remembered as the year This use of technology offers significant area of arbitration law. A copy of their of COVID-19. From February this year, advantages and cost savings to the presentations, as well as a video of the commercial activities in Australia and parties in the resolution of cross border webinar, can be found on the AMTAC elsewhere in the world were severely disputes by commercial arbitration. This website at Publications, Presentations & disrupted by both this novel coronavirus is especially where international travel Papers – AMTAC. and the measures that governments, has been severely restricted and is including the State and Federal unlikely to resume for some time. The AMTAC’s signature event, the AMTAC Governments of Australia, took to prevent use of technology has also reduced Annual Address, was also unable to be its spread. International commercial both the perceived tyranny of distance delivered this year in person and videocast arbitration, including in the shipping sphere, so far as Australia as an arbitral seat Australia wide by the Federal Court, as it was not immune from that impact. is concerned, as well as the claimed has been in the past, because of COVID. advantages of centrality of Hong Kong However, one potentially beneficial Rather, this year’s Address, the 14th and Singapore, potentially allowing a consequence of this crisis has been the AMTAC Annual Address, was delivered more level playing field in the provision almost meteoric rise in the use of online as a virtual event by Microsoft Teams. of arbitration services to develop. But platforms such as ZOOM and Microsoft Appropriately, the subject of the Address even as the effects of the pandemic Teams for the conduct of international was COVID related, namely “Charting the diminish and some normalcy returns, one commercial arbitrations, including final can expect that these new procedures Unknown - how COVID-19 has impacted hearings. This has been to a degree that and a greater use of technology and international shipping”. It was delivered by even 12 months ago most experienced the advantages and costs savings that the outgoing CEO of Shipping Australia, practitioners would have thought they offer, will continue to be a feature of Rod Nairn AM, who provided an interesting ambitious and beyond all expectations. international commercial arbitration, both and, at times, controversial, analysis of the Many of the leading arbitral institutions, in Australia and in the shipping sphere. impact of COVID-19 and the measures including the Australian Centre for that have been taken against it upon The pandemic and its impact have also International Commercial Arbitration seen changes in the way in which AMTAC shipping, both in Australia and overseas. (ACICA), have very quickly adopted has sought to fulfill its objective of For those who missed this Address, it is new rules and procedures for the use of promoting Australia and the Asia Pacific well worth viewing, and is also available such technology and conduct of virtual region as a recognised leader in maritime on the Resources webpage of the AMTAC arbitrations. As a result of its flexibility and transport scholarship. website. and the use of this technology in cross border disputes, commercial arbitration For example, in October 2020, Australian I would take this opportunity to thank has been especially well placed to ensure Arbitration Week (AAW) was conducted Rod for this year’s Annual Address, as that disputes subject to arbitration have (notionally) in Sydney as an almost well as his (and Shipping Australia’s) continued to be heard and determined completely virtual conference. This support of AMTAC in recent years. On almost as usual, despite the pandemic. allowed the conference to benefit behalf of the members of AMTAC, This is especially where more traditional from the participation of experienced I wish Rod well in his forthcoming practitioners from Australia and the rest means of dispute resolution, such as endeavours “messing about in boats”. court hearings, have been deferred or of the world, who may not have otherwise AMTAC also looks forward to working delayed. Whilst “justice delayed is justice been able to travel to Sydney. During with his successor, Melwyn Noronha, denied”, the commercial arbitration AAW, AMTAC hosted a seminar in the community’s response to the pandemic form of a lunchtime webinar. It was in continuing to promote the benefits of and its impact has largely resulted in any entitled “The show goes on… recent international commercial arbitration in delay, and thereby possible denial of developments in arbitration despite Australia as an efficient, economical and justice in cross border disputes that are COVID-19” and included presentations by effective means of resolving disputes subject to arbitration being reduced, if three experienced shipping practitioners, involving members of the Australian not minimised. on recent judgments of interest in the shipping industry.
Shipping Australia Limited I Annual Review 2020 71 MARITIME LAW AND INSURANCE
Loss of containers at sea – a test case
By GAVIN VALLELY, Partner, HFW
AMSA’s recovery action in the YM reservation must be removed upon into the territorial sea and others were Efficiency incident highlights the accession to the Nairobi Convention”. washed-up ashore. However, 60 of the ‘fragmented framework’ of Australia’s containers lost overboard settled on the The Discussion Paper refers to legal wreck removal legislation and some seabed within Australia’s EEZ. proceedings commenced in the Federal of its shortcomings. Court of Australia by the Australian Another limiting factor that applies in The recent incidents involving the loss Maritime Safety Authority (AMSA) in circumstances such as those which of containers off the New South Wales February 2020 against the owners occurred with the YM Efficiency is coast from the YM Efficiency (2018) and of the YM Efficiency, All Oceans that the definition of ‘wreck’ in the APL England (2020) “have highlighted Transportation Inc (All Oceans).2 Navigation Act does not cover goods or the importance of having strong and A review of AMSA’s claim in the cargo that have fallen overboard from a clear laws for wrecks and debris falling proceeding illustrates the ‘fragmented ship, unless the ship is also “wrecked, from operating ships” and, not for the framework’ and its potentially limited derelict, stranded, sunk, abandoned, first time, placed the spotlight on scope to recover clean-up and debris foundered or in distress”.4 In other the “current fragmented [legislative] removal costs where incidents occur words, the loss of cargo overboard of framework in Australian waters”.1 These in Australia’s exclusive economic zone itself does not constitute a wreck. incidents were also the catalyst (EEZ). Other lacunas in the legislative This is to be contrasted with the definition for Department of Infrastructure, matrix are also evident. of wreck in the WRC, which includes Transport, Regional Development and The background to AMSA’s claim “any object that is lost at sea from a ship Communications (Department) releasing against All Oceans is as follows: Shortly and that is stranded, sunken or adrift at a Discussion Paper in August 2020, after midnight on 1 June 2018 the sea”5 where there has been a ‘maritime “Australia’s accession to the Nairobi YM Efficiency, a 4,250 TEU container casualty’ which is defined as “a collision International Convention on the Removal ship, lost 81 containers overboard in of ships, stranding or other incident of Wrecks 2007” (WRC) which, among heavy seas approximately 16 nautical of navigation, or other occurrence on other things, invited responses to a miles east-south-east of Newcastle, board a ship or external to it, resulting in series of questions for the purpose of New South Wales. It follows that the material damage or imminent threat of the Department examining the options incident occurred in Australia’s EEZ, material damage to a ship or its cargo”.6 for accession to the WRC. which comprises the area 200 nautical However, in order to trigger the Shipping Australia submitted a non- miles from the baselines of the territorial WRC’s provisions with respect to confidential submission in response to sea and has a total marine area of removal, the wreck must present a the Discussion Paper which expressed about 10 million square kilometres. The ‘hazard’, that is “poses a danger or its support for “accession in full to the territorial sea is the area 12 nautical impediment to navigation” or “may Convention, without reservation or miles outwards from the territorial reasonably be expected to result in amendment”, noting that Australia’s sea baseline. The relevance of this major harmful consequences to the reservation of its position under the demarcation is that the wreck removal marine environment, or damage to the Convention on the Limits of Liability provisions in the Navigation Act 2012 coastline or related interests of one for Maritime Claims with the effect that (Cth) that AMSA is able to enforce or more States”.7 This assessment shipowners were subject to unlimited against ships that are not registered requires taking account of various liability for all costs associated with the in Australia are limited to “wrecks” criteria such as the size of the wreck, removal of wrecks, was inconsistent that are located in Australia’s territorial depth of water, tidal range and currents, with the WRC and “the unlimited liability sea.3 Some of the containers drifted nature and quantity of the cargo, and
1 Department of Infrastructure, Transport, Regional 3 ss 229(2)(b) & (3)(b) Navigation Act 6 Article 1(3) Nairobi International Convention on the Development and Communications’ update 4 s 14 Navigation Act Removal of Wrecks 2007 Claims for Wreck Removal / The Wreck Removal 7 5 Article 1(5) Nairobi International Convention on the Convention Article 1(4) Nairobi International Convention on the Removal of Wrecks 2007 Removal of Wrecks 2007 2 Federal Court No. NSD121/2020
72 Shipping Australia Limited I Annual Review 2020 the damage likely to result should However, discharge or disposal are not contents contain a noxious substance and the cargo be released into the marine defined terms in either the Civil Liability that the clean-up measures taken were in environment, height of the wreck above Act or the AMSA Act. Whether the proportion to the damage. or below the surface of the water at involuntary loss of containers overboard AMSA has also advanced arguments lowest astronomical tide, and any other from the YM Efficiency constitutes that All Oceans breached its duty circumstances that might necessitate “discharge or disposal” for the purposes to AMSA to take reasonable care in the removal of the wreck.8 It follows of the Civil Liability Act is unclear. Not the safe loading of the containers, that the WRC includes a check and surprisingly, in its defence All Oceans navigation, management and operation balance element to its application denies there was a discharge or disposal of the ship to avoid causing pollution although the scope of its application is from a ship in the terms contemplated damage and/or causing AMSA to clean capable of being very broad. by the Civil Liability Act as a result of up pollution damage, and incur loss the containers being “accidently lost Returning to the YM Efficiency, it and expenses by being negligent in overboard”, or there was the required has been reported that All Oceans its conduct, including failing to stow threat of pollution to the marine “refused to pay the significant clean- and lash the containers on board, and environment for AMSA to take the action up and salvaging costs”9 that were sailing the ship in an unseaworthy that it did. All Oceans also alleges that incurred by AMSA. On 8 February condition. In response, All Oceans AMSA’s clean-up actions would increase 2020, AMSA issued proceedings in denies that it was negligent and that it the risk of pollution and the containers the Federal Court and arrested the YM owed a duty to AMSA. becoming a navigational hazard. It is Eternity as surrogate ship for the YM also alleged that the requisite Ministerial AMSA also asserts that, as the incident Efficiency in respect of its claims for approval was not obtained by AMSA for created pollution damage, All Oceans the costs associated with the clean- the clean-up action taken. Reference committed a nuisance against the up and container removal operation is also made in All Ocean’s defence related interests of Australia as defined in relation to the containers that were to AMSA not being entitled to perform the Powers of Intervention Act (e.g. lost overboard from the ship that at its functions in a manner that are fisheries, tourist attractions, health of the time “were expected to amount to inconsistent with the United Nations population and conservation of living approximately AU$22 million”.10 It is Convention on the Law of the Sea marine resources)17 and that All Oceans understood that this estimate has since (UNCLOS). However, how it said that also committed a “tort on the High Seas” been revised down to AU$17 million. AMSA’s conduct was inconsistent with by reason of the alleged negligence and Due to the jurisdictional constraints UNCLOS is unclear. It is also put that nuisance. All Oceans repeats its denial relating to wreck removal that are Australia lacks constitutional power for that the incident resulted in any escape of outlined above, in framing its claim the recovery provision in the Civil Liability oil or noxious substances so as to engage against All Oceans, AMSA relied on Act to apply to the EEZ in the absence of the Powers of Intervention Act, and denies its statutory powers to deal with the a discharge or disposal in contravention that AMSA has any rights that have been protection of the marine environment, of the federal MARPOL legislation.14 interfered with, nor has there been any as well as bringing claims in negligence, endangerment or interference with the AMSA also claims that the pollution nuisance and ‘tort on the high seas’. pubic that could give rise to a private or clean-up measures were taken in All of these claims present a degree of public nuisance as a matter of law. In the exercise of its powers under novelty on the facts as pleaded and answer to the claim for “tort on the High the Protection of the Sea (Powers could be described as a test case. Seas”, All Oceans says it discloses no of Intervention) Act 1981 (Powers cause of action and should be struck out. AMSA says that the action it has taken of Intervention Act) which relates to with respect to pollution clean-up the taking of measures to prevent On any analysis, AMSA’s claims in measures, including locating, recovering pollution of the sea by oil or noxious negligence, nuisance and tort on and disposing of the containers, was in substances.15 In support of this the High Seas could be described accordance with its statutory functions head of claim, AMSA says that the as creative and should the Federal under the Australian Maritime Safety containers and their contents were Court action proceed to trial it will be Authority Act 199011 (AMSA Act). Under a noxious substance which escaped interesting to see how the Court deals the Protection of the Sea (Civil Liability) from the YM Efficiency and, as such, its with these claims. Perhaps of more Act 1981 (Civil Liability Act), AMSA can claim for pollution prevention measures interest will be how the Court reconciles recover the costs it incurs in performing is recoverable from All Oceans as a the complex statutory interpretation its functions under the AMSA Act in debt pursuant to the Civil Liability Act.16 issues that arise against the equally prevention or mitigating or attempting complex factual background. One In response, All Oceans pleads that the YM to prevent or mitigate pollution in the thing we can be assured of is that the Efficiency is not a ship within the meaning marine environment caused by the judgment will provide a detailed analysis of the Powers of Intervention Act on the discharge or disposal from a ship in of the statutory framework that AMSA basis that it has not been in Australian the EEZ.12 AMSA says that the costs it relies on to advance its claim against All internal waters or within the Australian incurred in the prevention or mitigation Oceans. Whether that analysis favours coastal sea since 5 July 2018, and the of pollution damage are recoverable AMSA or the factual findings would have clean-up measures taken by AMSA from All Oceans as a debt pursuant to resulted in a different outcome under a took place after this time. All Oceans the Civil Liability Act.13 WRC regime remains to be seen. also denies that the containers and their
8 Article 1(5) Nairobi International Convention on the 11 s6(1)(a) of the Australian Maritime Safety Authority Ships) Act 1983 Removal of Wrecks 2007 Act 1990 15 s10 of the Protection of the Sea (Powers of 9 p 3 Department of Infrastructure, Transport, 12 s22A(1) of the Protection of the Sea (Civil Liability) Intervention) Act 1981 Regional Development and Communications’ Act 1981 16 s22A(1) of the Protection of the Sea (Civil Liability) Discussion paper “Australia’s accession to the 13 s22A(3) of the Protection of the Sea (Civil Liability) Act Nairobi International Convention on the Removal of Act 1981 17 Wrecks 2007” s10(8) of the Protection of the Sea (Powers of 14 Protection of the Sea (Prevention of Pollution from Intervention) Act 1981 10 Ibid p 3
Shipping Australia Limited I Annual Review 2020 73 MARITIME LAW AND INSURANCE
Cyber risk management in a “COVID-Normal” world By NIC VAN DER REYDEN, Partner and AMBER ALBRECHT, Associate, Clyde & Company
As the world continues to deal with the the industry placing more reliance on impacts resulting from the exposure or economic and operational challenges digitalisation, automation, remote working exploitation of vulnerabilities to both IT from the global COVID-19 pandemic, and network-based systems. and operational technology (OT) systems. cybercriminals are using COVID-19 as an Often IT and OT systems share the same opportunity to exploit new work practices Cyber risk management network. This brings greater risk of and capitalise on these uncertain times. unauthorised access or malicious attacks Cyber risk management should now As many organisations have moved to to vessels’ core operational systems form part of both onshore and offshore a more remote working environment and and networks, which impose greater operations to ensure the safe and have placed further reliance on IT resources risk to the safety of onboard personnel, efficient operation of vessels, as well and software, organisations should be navigation, cargo and damage to the as onshore operations. The goal of conscious of the general data, privacy and marine environment. cyber risk management is to ensure that business risks associated with COVID-19 shipping and the supply chain remains Appropriate safeguards need to be in and of the increase in cyber risks. secure and operationally resilient to ever place to defend against and manage the There have been recent examples in the evolving cyber risks. fallout from any cyberattack. The IMO maritime industry where operators have recommends a risk-based approach From 1 January 2021, IMO’s Resolution been hit by cyber attacks. to cyber risk management and that a MSC.428(98) – Maritime Cyber Risk culture of cyber risk awareness should be In January 2020, freight company, Toll Management in Safety Management embedded at all levels of an organisation Group, was a victim of a ransomware Systems (Resolution) will have effect. to “ensure a holistic and flexible cyber risk attack which forced it to temporarily shut The Resolution confirms that cyber management regime that is in continuous down some of its IT systems, and had to risks are to be appropriately addressed operation and constantly evaluated through revert back to manual operations. in existing and approved safety effective feedback mechanisms.” management systems (SMS) and that In April 2020, MSC, confirmed that it operators should consider cyber risk experienced a network outage in its management in accordance with the Best Practices in the event of a cyber headquarters located in Geneva, due to a objectives and functional requirements attack malware attack affecting its website and of the ISM Code. This means that ship Given that no vessel, organisation, port, customer portal, which in turn, affected operators will need to incorporate cyber terminal or other key infrastructure is online bookings for several days. risk management into its SMS by 1 immune to cyber attacks, and as cyber In September 2020, CMA CGM, was hit January 2021. threats and vulnerabilities continue by a ransomware attack by the “Ragnar to evolve and new ones emerge, all Companies should also implement or Locker gang”. The carrier shut down its participants in the supply chain should adopt IMO’s “Guidelines on maritime network to stop the malicious malware take active steps to mitigate their cyber risk management” (MSC-FAL.1/ from spreading further to its systems. exposure to such risks. This can be Circ.3), which provides high level done by frequently assessing risks and In October 2020, the IMO reported that recommendations and elements in vulnerabilities and by implementing it had also suffered a “sophisticated implementing cyber risk management in safeguards to address and manage cyber attack against the organisation’s order to safeguard against cyber related those risks. Organisations should now IT systems”, which impacted its website threats both onshore and offshore. also shift their focus from the prevention and internal web-based services. Further guidance can also be found in of an attack to the preparation of a BIMCO’s, “The Guidelines on Cyber These examples are a stark reminder comprehensive response to one. Security Onboard Ships”, in implementing that in our new “COVID-Normal” world, cyber risk management onboard. As a start, organisations should cyber risk management is fundamental develop an incident response plan to to safe and secure shipping and supply Effective cyber risk management prioritise, assess and respond to a chain operations, especially in light of should consider safety and security cyber incident. An incident response
74 Shipping Australia Limited I Annual Review 2020 plan should consider the operational For example, BIMCO’s Cyber Security Being proactive now will only help impact, including disruption from Clause 2019 allocates cybersecurity to protect against and mitigate the system outages, reputational impact related responsibilities, liabilities and potential long-lasting impacts of a and financial loss. A good incident obligations for contractual performance, cyber attack. In a “COVID-Normal” response plan will allow an organisation and has been drafted in such terms world it has never been more important to quickly identify and escalate that it could easily be incorporated on for organisations to ensure that they incidents that require a whole of a back-to-back basis in most shipping raise cybersecurity awareness at all business assessment. It is important and transport agreements. This clause levels and build a cybersecurity culture. to define key roles and responsibilities requires parties’, including any third- Be cyber aware! of those that will need to be consulted party performing services, to implement in responding to a cyber incident and and maintain “appropriate” cybersecurity How can we help? when to notify insurers, as this will measures and systems. It also provides Clyde & Co has the largest dedicated enable the company to obtain the for a notification regime, requiring a and rapidly expanding cyber incident benefit of insurance cover and support party who is aware of a cybersecurity response practice in Australia and New available under various insurance incident to notify the other, and if a party Zealand. Our experienced team have policies, including cyber insurance. is affected by a cybersecurity incident, dealt with over 700 data breach and it is obliged within 12 hours of the first It is good practice for an incident technology related disputes in recent notification, to inform the other party response plan to include protocols to times, including a number of the largest and assist in mitigating or preventing the respond to each separate phase of a and most complex incidents in Asia further effects of the incident. Lastly, the cyber attack, including pre-incident, Pacific to date. clause contains a default limitation of incident and post-incident. For liability cap of US$100,000 which applies From pre-incident readiness, breach instance, during the pre-incident stage, unless the incident resulted solely from response, through to defence organisations should conduct periodic the gross negligence or wilful misconduct of regulatory investigations and cybersecurity health checks and run of a party. proceedings, as well as recovery cybersecurity and incident response actions against wrongdoers, we assist scenarios to determine if there are any In addition, procuring cyber insurance clients in Asia Pacific across the full gaps, and whether further safeguards could also be an effective way to cyber lifecycle. Our team is also are required. It is also important that minimise and safeguard against the highly regarded for their expertise all staff at all levels are educated on impacts of a cyber attack or data and experience in managing all cyber awareness to ensure that all staff breach. Cyber insurance will generally forms of disputes across sectors, can identify and report cyber-related cover against first party loss, and may including advising on some of the most risks such as phishing attempts. If include loss of income due to business newsworthy class actions commenced an incident does occur, organisations interruptions, recovering data and in Australia. should take appropriate steps to mitigate repairing damage to IT and OT systems, loss and damage, including shutting and third party loss, such as liability for Our 24 hour cyber incident response down networks to prevent the spread claims by third parties for data breaches. hotline or email allows you to access of malicious malware or to prevent the However, insurance cannot be expected our team directly around the clock. misuse of personal information. This to substitute adequate protection includes reporting an Eligible Data Breach measures. Moreover, in the absence For more information, contact us on: to the Office of the Australian Information of proper cyber risk management and Australia: + 61 2 9210 4464, Commissioner as required under the effective policies and procedures, New Zealand: 0800 527 508, Privacy Act 1988 (Cth). In the recovery insurers may decline or limit coverage, Email: [email protected] stage, organisations should seek to whilst applying higher premiums or preserve any evidence and recover losses deductibles to future policies. against third parties who have caused or contributed to the incident, as well as, Final thoughts assess the impact and cause of the attack, We can expect that cyber attacks the effectiveness of the incident response will continue to become even more plan, reassess threats and vulnerabilities to sophisticated as technology advances, determine new vulnerabilities, and update and the industries increased reliance the incident response plan accordingly. on digitalisation, automation and remote working. The recent cyber Transfer of cyber risks – contract and incidents exemplify how sophisticated insurance cybercriminals have become. Organisations and all participants in the It is critical that organisations have supply chain would be well advised to robust cyber risk management plans, look at effective ways to transfer some and regularly test their systems and of their cyber risks, either by way of processes to ensure that they can contractual terms or insurance. effectively respond to a cyber attack.
Shipping Australia Limited I Annual Review 2020 75 MARITIME LAW AND INSURANCE
It is trite (but right) to say that no-one benefits from trade disputes By GEOFF FARNSWORTH and NATHAN CECIL, Partners, Holding Redlich
Australian exporters of various Commerce. To the extent that it is responsible for shipment from ADP commodities are suffering as a result of relevant, the most recent version is to Tianjin Port according to CIF, action by the Chinese Government, as ‘INCOTERMS 2020’ though again, to but the buyer will take charge of are their Chinese counterparts. the extent it is relevant, its predecessor, the cost of health certificate and INCOTERMS 2010 was the relevant certificate of origin. At a macro-level, these issues will version. need to be resolved at a government 5.3 The testing fees must be paid by and diplomatic level, or possibly at the Relevantly, INCOTERMS also describes the buyer except the microbiology WTO. But these can take time. when risk is to pass. It’s definition of testing fees in Australia. CIF provides: So where do risks lie under open 5.8 The Seller will ensure that the contracts when imposts like tariffs Products supplied to the Purchaser are made? A recent decision of the A4 Delivery [Seller’s Obligation] will conform to Import country Victorian Supreme Court provides some The seller must deliver the goods either standards, and be fit for human helpful guidance. by placing them on board the vessel or consumption. by procuring the goods so delivered. In Full Joy Foods Pty Ltd v Australian A shipment of products (described as In either case, the seller must deliver Dairy Park Pty Ltd1 the Court was ‘Step 1’, ‘Step 2’ and ‘Step 3’ products) the goods on the agreed date or with asked to decide on a challenge to was made. Before export, the Seller the agreed period and in the manner an arbitration award pursuant to the had the products tested and obtained customary at the port. Commercial Arbitration Act 2011 (Vic). the necessary documents for export. The Buyer paid the purchase price. At the centre of the dispute was an A5 Transfer of risks [Seller’s agreement dated 27 March 2017, obligations] When the goods arrived at Tianjin, between two Australian companies for the Chinese authorities also tested The seller bears all risks of loss of or the supply by Dairy Park (Seller) to Full the goods and reported that one of damage to the goods until they have Joy (Buyer) of infant milk products into the products (‘Step 1 Product’) was been delivered in accordance with A4, China. The sale price was expressed contaminated with bacterium. They with the exception of loss or damage in to be “CIF USD”. Most readers will denied entry to all of the products, the circumstances described in B5. know that ‘CIF’ is an abbreviation which were eventually returned to of ‘Cost Insurance Freight’. This Australia. means that the sale price includes B5 Transfer of risks [Buyer’s Obligations] The Seller produced a new batch of those three elements, so that the CIF The buyer bears all risks of loss of or Step 1 product, which was shipped to Seller must also supply insurance and damage to the goods from the time they China and cleared Customs without arrange carriage of the goods to their have been delivered as envisaged in A4. incident. destination. Curiously, as will emerge, the evidence Nevertheless, the Buyer refused to The Seller’s obligations are generally was that the product was collected accept any more product under the discharged when it tenders the relevant from the Seller by the Buyer’s ‘courier’ contract on the basis of the default commercial documents to the Buyer and that the shipment was arranged by under the first shipment. (usually a bill of lading, certificate of the Buyer. insurance and a commercial invoice). In due course, Full Joy commenced Other relevant terms were: arbitration under the contract claiming ‘CIF’ is also an ‘Incoterm’, which are damages and a refund of the purchase standard definitions of trade terms 5.2 The seller is responsible for the price in respect of the shipment of Step (including CIF and FOB) published manufacture of the products and 2 and Step 3 product. by the International Chamber of product quality; the seller will be
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76 Shipping Australia Limited I Annual Review 2020 Among other things, Full Joy alleged • Were the step 2 and step 3 products ensure that the contracted goods are that under the contract in fact delivered, having regard to delivered at the contractual destination the applicable Incoterms (CIF) and in the contracted condition. the respondent ‘will ensure that the paragraph 20 of Ms Shi’s affidavit? goods supplied to the Purchaser will This can be significant in the context conform to import country standards In its closing submission, despite the of Trade disputes, particularly where and be fit for human consumption.’ arbitrator’s request, the Buyer made import tariffs and duties are imposed. no reference to the relevance of ‘CIF’ The risk associated with such imposts It appears that in their pleadings and to the contract. are (absent express terms in the at the hearing, neither party addressed contract such as ‘Force Majeure’) the significance of the use of the term The Seller’s submissions made almost exclusively for the Buyer under ‘CIF’ in the contract. reference to CIF, and the Buyer’s CIF terms. submissions in reply again made no Following a hearing and exchange of reference to CIF. This can be contrasted with the term written submissions, the arbitrator DDP, under which it is the Seller who published his award finding in In his Award, the arbitrator focused has the obligation to deliver the goods favour of the Seller. In summary, the on whether the product had been at the destination and pay any duties arbitrator concluded that the Seller delivered in accordance with the associated with doing so. had complied with its CIF obligations, contract. and title and risk in the product had That does not mean however that CIF In considering the nature of obligations passed on shipment or latest on Sellers should necessarily be quick to under a contract designated CIF, negotiation of shipping documents. enforce their rights against defaulting the arbitrator assumed that the ICC Buyers. Those rights still need to be The Buyer challenged the award. definition was relevant, even though enforced, and attempts to enforce Readers will be aware that under the contract does not appear to have arbitration awards or judgments, Australia’s arbitration legislation, so stipulated, and though it was not particularly in some overseas modelled on the UNCITRAL Model put in evidence by either party. jurisdictions can be problematic. Law, parties cannot ‘appeal’ an award The arbitrator cited those parts of the on the basis that the arbitrator made ICC definition set out above, including an error of fact or law. Recourse transfer of risks. against arbitration awards is limited (in summary) to misconduct by the In challenging the Award, one of the Tribunal amounting to a denial of Buyer’s grounds of complaint was natural justice. that the arbitrator had assumed that the INCOTERMS definition of CIF In this case, the Buyer alleged that was relevant (despite the fact that under ss 34(2)(a)(ii) and 34(2)(b)(ii) of INCOTERMS were not referenced in the Victorian Commercial Arbitration the contract. Act the arbitrator had relied on a matter not properly put in issue The judge found that ‘it could have (that is, the significance of CIF) and come as no surprise to the applicant the Buyer had not been afforded an that the arbitrator might treat the opportunity to present its case, which meaning of ‘CIF’ by reference to the was accordingly not in accordance Incoterms’ and that to do so was ‘by with the public policy of the state, as a no means irrational or unlikely.’ denial of natural justice. The Buyer’s principal grievance Conclusion appears to have been an email sent This decision is informative on a by the arbitrator on 11 September number of levels. Leaving to one side 2019, following the hearing, providing aspects of the decision dealing with directions as to the making of written arbitration practice and procedure, it is submissions and stating: a timely reminder of the importance of correct use of trade terms in contracts. Otherwise, as foreshadowed, I would be assisted if, in their respective In the case of CIF contracts in closing submissions, the parties would particular, it is a reminder that the address the following (this is by no Buyer bears much of the risk once the means intended to be exhaustive, or goods are shipped (both as to risk of even directive, as to the matters that damage, and trade risk associated the parties may wish to address in their tariffs and phytosanitary matters), submissions): and the Seller bears little obligation to
Shipping Australia Limited I Annual Review 2020 77 MARITIME LAW AND INSURANCE
any amounts payable as demurrage, Demistifying such loss/damage/expense by way of: (a) Damages for the charterers’ breach of contract in not completing discharge damage within permitted laytime; and /or (b) An indemnity in respect of the consequences of complying with the and demurrage charterers’ orders to load, carry and discharge the cargo?” claims The Court answered “Yes” to (a) above and “Not Answered” to (b) above, given By PETER MCQUEEN FCIArb, the answer given to (a). Independent arbitrator and mediator Court observations on nature of demurrage Can a shipowner make a claim against on the basis of the following assumed The main point of principle involved in a charterer for damages, in addition to facts, the following question of law (in this decision, asked the question what a claim for demurrage? Yes, says the accordance with s.45 of the English it is that demurrage liquidates. The English Commercial Court (Andrew Baker Arbitration Act 1996). Court answered this by describing that J) in K-Line Pte Ltd v. Priminds Shipping “the nature of demurrage … serves to liquidate loss of earnings resulting (HK) Co. Ltd - The “ETERNAL BLISS” Assumed facts [2020] EWHC 2327 (Comm). from delay to the ship through failure to 1. The Vessel was detained at the complete loading or discharging within This recent decision relates to a question discharge port beyond the contractual the laytime allowed by the charter” [88]. of long-standing uncertainty which has laytime, due to port congestion and a divided opinion for many years, namely lack of storage. The Court observed that “Agreeing whether a shipowner can claim both a demurrage rate gives an agreed 2. Priminds was therefore in breach of its demurrage and damages where the only quantification of the owner’s loss of obligation to complete discharge within breach of contract by the charterer is use of the ship to earn freight by further the permitted laytime. the failure to load/discharge the vessel employment in respect of delay to the ship after the expiry of laytime, nothing within the laytime allowed. On the one 3. The condition of the cargo deteriorated more.” and further that “Where such hand, it has been considered that a as a result of the detention beyond the delay occurs, the demurrage rate shipowner may recover both if it can laytime and not due to any want of care provided an agreed measure by which prove a separate type of loss, that is a by K-Line. loss unrelated to the use of the vessel; on the parties are bound for the owner’s the other hand, it has been considered 4. K-Line suffered loss and damage and claim for damages for detention, but it that a shipowner must prove both a incurred expense as a result of the does not seek to measure or therefore separate type of loss and a separate detention beyond the laytime, including touch any claim for different kinds of breach of contract, that is one other than dealing with and settling the cargo loss, whatever the basis of any such the charterer’s failure to load/discharge claims brought by the cargo interests claim.” [61] the vessel within the laytime. and insurers. 5. The loss, damage and expense suffered Conclusion Background facts by K-Line were: This is a significant decision which brings clarity to the principles engaged The ETERNAL BLISS (Vessel) carried (a) Not caused by any separate breach where a shipowner is able to claim a cargo of soybeans from Brazil to of charterparty, other than Priminds’ for damages, in addition to claim for China on an amended Norgrain form obligation to discharge within the demurrage: namely in circumstances charterparty, and was detained at the contracted laytime; discharge port due to port congestion and where, following a failure by the lack of storage. That cargo deteriorated (b) Not caused by any event which charterer to load/discharge cargo within during that time because of the delay broke the chain of causation; and the laytime period allowed, where the shipowner has suffered a further and and not as a result of any lack of care by (c) Reasonably incurred. the Vessel’s shipowner, K-Line. Claims separate type of loss, in addition to were made by the cargo interests 6. The loss, damage and expense suffered its loss of the vessel, it does not need against K-Line, which settled them for by K-Line were consequences of to prove breach of a separate term of approximately US$1 million. K-Line then compliance with Priminds’ orders to the charterparty in order to recover commenced arbitration proceedings load, carry and discharge the cargo. damages of that loss, in addition to against the charterer, Priminds, under the demurrage. charterparty, seeking recovery by way of Question of law and answer www.petermcqueen.com and damages or an indemnity in respect that “ … are the owners (here K-Line) in www.arbdb.com cost. The English Commercial Court was principle entitled to recover from the asked to determine as a preliminary issue, charterers (here Priminds), in addition to
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Shipping Australia Limited I Annual Review 2020 79 MARITIME LAW AND INSURANCE
What’s your limit? Limitation of liability in shipping
By JOE HURLEY and RYAN HUNTER, Lawyers, HWL Ebsworth
Like the drunken sailor, a good mariner concern has largely fallen away with These limits are in aggregate for each must know his limits. And the same is modern technology). occasion. If there are many potential true at law. Ordinarily in Australian law, claims from different injured people or The limits themselves depend on parties are free to agree their own limits damaged property, as may often be the the type of damage, as well as the in their contracts, and liability outside of case, the liable person can establish tonnage of the ship involved. They contracts can be as great as the damage a fund with the Court for the entire have changed over time, especially suffered. However, in maritime law, the limited amount, which will be held and in Australia,- to recognise that we are position changes thanks to Australia’s eventually distributed to each claimant, not generally a ship-owning nation, adoption of international treaties and based on their proportionate share of and so see little benefit from allowing conventions. Some of the best known their claim. shipowners to cap their liability. In limits are in the Amended Hague Rules 2015, the limits under the Convention There are a few key exceptions worth (scheduled in the Australian Carriage were increased significantly in response mentioning, where maritime claims of Goods by Sea Act 1991), but there to the 2009 Pacific Adventurer spill, are outside the application of the are also limits for oil pollution, nuclear where 30 containers of ammonium Convention. The first is where other damage and, as discussed in this article, nitrate were lost in Cyclone Hamish, laws expressly deal with maritime general maritime claims. causing a $34 million cleanup. The claim limits, such as for oil pollution The Limitation of Liability for Maritime Owners’ liability was then limited by the and nuclear damage. The second Claims Convention was introduced into Convention to $17.5 million. Today, the is claims for breach of contract, so Australian law in 1989 in the Limitation same event would be subject to a limit parties cannot rely on the Convention of Liability for Maritime Claims Act. It of $34.3 million. to limit, for example, charterparty provides an overall limit on the total claims. The third is claims for salvage For a claim for loss of life or personal liability arising from a single, distinct, and general average. The fourth is injury, the limits (based on an exchange occasion. These limits exist primarily if the damage was caused by the rate of one special drawing right to to protect shipowners, but the intentional or reckless acts of the AU$1.95, which is close to its recent Convention’s protections also extend person responsible – however, the average) are: to charterers, managers, masters and reckless acts of a master or crew crew. • For a ship up to 2,000 tons, will not mean that a shipowner is still $5,906,243.29 prevented from limiting their liability. The Convention was intended to create “a virtually unbreakable system of • For each additional ton from 2,001 to These exemptions are generally, of limiting liability”. It does so by setting 30,000, $2,362.50 course, not actually carve-outs from limits for, effectively, any claim arising • For each additional ton from 30,001 to limiting liability, but rather an exercise in from a ship – whether it is damage to 70,000, $1,771.87 passing the buck to the next source of persons or property, cargo or other • For each ton after 70,000, $1,181.25. limitation. While watching one limit, it ships. In each case, liability is capped is important to also keep an eye on the based on the tonnage of the ship. The For any other claim (such as property next one. limits are high, but sufficient to protect damage or cleanup costs), at the same shipowners in extreme cases. After all, exchange rate, the limits are: the original intention of the Convention • For a ship up to 2,000 tons, (and its predecessor treaties) was to $2,953,121.64 protect shipowners from expensive insurance costs for black swan events, • For each additional ton from 2,001 to as well as to save them from risks of 30,000, $1,181.25 masters and crew who the shipowners • For each additional ton from 30,001 to had no control or supervision over, 70,000, $586.71 across the world (although this second • For each ton after 70,000, $391.14
80 Shipping Australia Limited I Annual Review 2020 PAPUA NEW GUINEA
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CONNECT TO A SMOOTHER, SMARTER OCEAN www.iss-shipping.comShipping Australia Limited I Annual Review 2020 81 MARITIME LAW AND INSURANCE
Mitigating ship
berthing incidents By LAURENCE JONES, Director Global Risk Assessment, TT Club
There is growing concern by ports and understanding of the other’s role shipboard or general cleaning items. terminals that berthing and unberthing for the safe conduct of the ship Adequate spare mooring lines should operations, with very large ships, are in pilotage waters. The pilot’s be kept on the ship. more difficult than with smaller ships. primary duty is to provide accurate 4. Winches Despite newer ships having better information to ensure safe navigation, It is important that all greasing points engines and thrusters, they have more while the master retains ultimate are free, working correctly and have momentum and are more difficult to responsibility for the safety of the not been painted over, in order that manoeuvre. They also cut down on ship. There has been evidence of available space around the berth and incidents occurring because the equipment can be maintained to in the turning basin. The consequent master was new to the port, and/or the suitable standard. All winches ‘cascading’ affect, with the advent of the pilot not previously experiencing should be included in ship’s Planned larger tonnage, means that this risk the size or type of ship call at the port. Maintenance System. associated with larger ships is real and 2. Engine and propulsion equipment 5. Ship’s mooring crew increasing in most ports globally. Engine and/or propulsion equipment It is important to have sufficient Analysis of insurance claims by TT failure is a common cause of ship personnel to be able to moor the ship Club over the last 10 years shows that collisions. Proper maintenance safely and effectively. All crew should while there have been a number of systems and procedures should be be trained and be familiar with the highly reported ship allisions in 2020, established and followed, including physical environment and the hazards ship berthing incidents are a regular strict adherence to the ship’s Safety associated with mooring operations. occurrence. While ship allisions are of Management System. Modern, A number of familiar factors recur in major concern, they are only one of the more reliable ships’ engines and mooring incidents: seafarers stand in risks in berthing ships. The other risk is the addition of thrusters have areas exposed to injury should ropes mooring incidents. Mooring can result improved the level of safety in ship part; crew with insufficient training in injuries or fatalities to crew or mooring manoeuvring. However, the master take part in mooring operations. line personnel. must ensure sufficient cargo or The ship and its equipment must ballast water is present to ensure the be maintained to a high standard to All the factors contributing to berthing propeller is below the water surface to reduce the risk of mooring incidents; incidents can be classified as either enable full manoeuvrability. Failure to all personnel should be adequately ship issues or port/terminal issues. The ensure this was a contributing factor trained in the use of the correct following aims to identify and address the in the recent Milano allision incident personal protective equipment; issues that can mitigate the occurrence of in Busan, the Korea Maritime Safety adequate procedures should be in ship berthing incidents. Tribunal found. place, including supervision by a Before proceeding, we should clarify the competent person. 3. Mooring lines word allision. A ship collides with another Where ropes are in poor or damaged 6. Weather moving ship … A ship allides with a fixed condition, they should be replaced Adverse weather can be significant object. with spares. It is important that for a ship in a port environment. all ropes, wires and links used for Wind may cause heading changes Ship issues mooring have a certificate, and it is and leeway; failure to compensate 1. Master good practice for these certificates correctly for wind during berthing Qualified and experienced masters to be clearly labelled and kept in is a significant cause of berthing and pilots are essential to the safe an easily accessible file ready for incidents. The difficulty in allowing for berthing of a ship. The pilot, master inspection. Spare mooring ropes, wind, arises from the variable effect it and bridge personnel clearly need wires and links should not be stowed can have due to changes in a ship’s good communications and mutual with paint, chemicals, or any other heading and speed. Tides, currents
82 Shipping Australia Limited I Annual Review 2020 and the swell also have significant which allides with the berth, a quay systems may improve safety, effects on a ship preparing to moor crane parked near to the ends of the and the securing of ships. These or sail, and must be considered allocated berth will have an increased technologies negate the need for by the master and the pilot in their risk of allision. Unfortunately, mooring lines and therefore remove calculations. wherever quay cranes are parked port and ship personnel from along the quay an out-of-control ship potentially dangerous situations. Port/terminal issues can impact them. While these systems are costly, the improved safety benefits may justify 1. Port authorities 7. Weather their installation, especially where Port authorities must undertake Most port authorities have ship movements at berth due to swell feasibility studies to model taking procedures to allow berthing and etc. are an issue. larger ships. After a ship allision, a unberthing only when the wind court in Australia found failure of the speed is below a certain level – and In summary, monitoring and addressing Port Authority to properly assess dependent on wind direction, tides, the above issues will help mitigate the larger vessel calls, formed part of currents and swell. Ports in regions occurrence of ship berthing incidents. the basis of a claim for contributing prone to hurricanes, typhoons or The stakeholders on both the ship and negligence from the ship owner. cyclones generally have additional port/terminal sides of the interface need procedures to send ships out to sea to focus on their own issues, but also 2. Pilots when severe weather is forecast. work together to manage the safety of In most ports, pilots are essential for Emergency procedures for severe people, assets and the environment. assisting the master to manoeuvre weather may be less advanced in his/her ship safely in the port. Port locations that historically have never authorities and pilots must ensure About TT Club had to deal with such conditions. that appropriate training, systems and TT Club is the established market-leading With climate change, erratic weather procedures are in place to manage independent provider of mutual insurance conditions are becoming more the berthing and unberthing of the and related risk management services to prevalent anywhere. Therefore every ships that they may be handling, the international transport and logistics port, regardless of their location, should especially taking account of new industry. TT Club’s primary objective is implement emergency procedures to services or larger ships. to help make the industry safer and more send ships to sea in advance of severe secure. Founded in 1968, the Club has 3. Tugs weather; do not wait for an incident more than 1100 Members, spanning Similarly, Port authorities need to before developing an emergency container owners and operators, ports plan for new services or larger ships, plan. The risks of ships’ mooring and terminals, and logistics companies, including ensuring that there are a lines breaking during severe weather working across maritime, road, rail and air. sufficient number of tugs with enough conditions are substantial, and only TT Club is renowned for its high-quality power. partially mitigated by the availability service, in-depth industry knowledge and of additional mooring lines, or tugs on enduring member loyalty. It retains more 4. Bollards standby, albeit these should form part than 93 per cent of its members, with In many ports, bollards may have of the emergency response plan. been in place and potentially a third of its entire membership having unchecked for decades. Port 8. New technologies chosen to insure with the Club, for 20 authorities must ensure that bollards Emerging technologies offering years or more. are sufficient in number, quality vacuum and magnetic mooring and capacity, as well as suitably located for the tonnage likely to call at each berth. Ships need to have appropriate dialogues with the ports to ensure the bollards are suitable. 5. Mooring personnel It is important to have sufficient personnel to be able to moor the ship safely and effectively. All mooring personnel should be trained and familiar with bights, snap-back zones and the hazards associated with mooring operations. 6. Parking location of quay cranes When a ship is berthing, the safest location to park quay cranes is well away from the allocated berth. However, this is generally impossible due to the length of the berth and location of other operations. Furthermore, repositioning the cranes after berthing could present unacceptable delays. Therefore, the least risky location to park quay cranes during a ship’s berthing is in the centre of the intended berth. As it is often the bow or the stern,
Shipping Australia Limited I Annual Review 2020 83 EDUCATION AND TRAINING AMC
Maritime education and training under the
pandemic’s shadow By MICHAEL VAN BALEN, Principal, Australian Maritime College
As an island nation, Australia As the national institute for maritime COVID-19 related restrictions on is dependent upon its skilled training, education, research and people’s movement and association consultancy, AMC offers courses have presented a raft of challenges maritime workforce to sustain its ranging from vocational certificates for education and training providers. supply chains. For over forty years, to postgraduate degrees, and higher AMC’s focus for most of 2020 has the Australian Maritime College degrees by research in maritime business been on addressing such challenges (AMC) has played a vital role in and logistics, seafaring, and maritime by modifying and adapting its course engineering and hydrodynamics. delivery to meet shifting demands. For developing a skilled workforce that AMC’s maritime focussed curriculum is some courses, seafaring in particular, is able to respond effectively to complemented by a suite of research the impact of COVID-19 restrictions opportunities and challenges in an facilities that are some of the most has been particularly severe because ever-changing world. advanced in the southern hemisphere. regulatory standards require face-to-
84 Shipping Australia Limited I Annual Review 2020 face, practical and/or hands-on training standards. Although the impact of For 2021, AMC has refreshed its in many instances. the pandemic on demand for maritime flagship Bachelor of Global Logistics courses in 2021 remains uncertain, and Maritime Management to Earlier in 2020, when COVID-19 related AMC is seeing strong demand for incorporate contemporary ideas restrictions made face-to-face training its postgraduate programmes, in into the curriculum, while providing and assessment difficult, AMC staff particular the Master of Logistics greater choice to students. The modified course delivery patterns so Management and the Master of newly refreshed course will give that only theory content was delivered Maritime Engineering, which offers students a choice of majors to suit online at the height of restrictions. This specialisations in naval engineering, their interest - Logistics and Supply meant that traditionally taught courses maritime technology management and Chain Management, Maritime Business had to be converted for online delivery maritime design. Management, and Maritime Technology with little notice. In delivering the Management. course content online, AMC staff had Pandemic-related disruptions to overcome significant pedagogical appear to have increased interest in AMC has also been working to bring challenges in modifying content with e-commerce and the role of logistics. its expertise, gained through niche deep-rooted historical traditions and With the growing global focus on the research and industry engagement, to almost no precedent for online delivery. circular economy, maritime logistics a wider audience. In 2021, a Graduate is crucial in helping to reduce waste Certificate in Organisational Resilience As a result of quick and effective and ensuring that resources are will be offered that, given recent course transformation, students’ used effectively. Furthermore, the societal experience of COVID-19 learning remained largely uninterrupted move towards decarbonisation of the related disruption and uncertainty, will despite many students not being transport sector highlights the vital be relevant across the maritime sector able to stay in, or travel back to, role that research-led institutions, such and more broadly. Tasmania where AMC is located. When as AMC, can perform in overcoming Tasmania’s borders were finally opened AMC looks forward to seeing its complex challenges of our times. to allow interstate students to travel to recent initiatives develop further in Tasmania for practical training, online AMC is well-positioned to help build the 2021. AMC will continue its strong delivery of courses enabled students skilled workforce required by industry engagement with industry, government to continue their learning while under to thrive into the future. As in the past, and regulatory authorities, to ensure mandatory hotel or home quarantine. AMC will continue to innovate to ensure that Australia’s maritime workforce ongoing workforce development of the development needs are met in 2021 For some Australian Maritime Safety Australian maritime industry. and beyond. Authority regulated courses, formal assessments presented a unique The AMC’s strong engagement and challenge, as there was little option ongoing partnership with Defence has but to conduct theory exams under been recognised with two accolades invigilated conditions. In a first for the at the Defence Connect Australian University of Tasmania, formal exams Defence Industry Awards. AMC was were conducted online under remote named Academic Institution of the proctoring to enable students to Year, and its commercial arm AMC undertake exams from their homes. Search won the Regional SME of the Year, at a gala event live streamed from While border controls have eased in Sydney on Friday, 27 November 2020. recent days, many restrictions still In addition, AMC Search was named remain in place. AMC continues a finalist in the category of Prime to conduct practical training under Contractor of the Year. strict social-distancing and hygiene
Shipping Australia Limited I Annual Review 2020 85 NAVIGATION Australian Hydrographic Office
From the Hydrographer’s desk: 2020 in review
By Commodore FIONA FREEMAN RAN, Hydrographer of Australia
As I look back on 2020, the HydroScheme Industry Partnership The first HIPP survey task, a survey Australian Hydrographic Program reference area off Green Island in Queensland’s GBR, was awarded to Office (AHO) has celebrated The HydroScheme Industry Partnership Program (HIPP) commenced on 28 iXblue Pty Ltd. Completed survey innovation, evolution and some February 2020. data was accepted by the AHO on 8 significant accomplishments: September. A total of eleven survey the HydroScheme Industry The HIPP is a long-term partnership requests have so far been released under between Defence and the Australian the HIPP, six have commenced field Partnership Program (HIPP) hydrographic industry, which will operations, and by the end October 2020, commenced, there were help drive fundamental change in over 640 nm2 had been surveyed. The noteworthy improvements the delivery of national hydrographic AHO expects to receive just under 200 in nautical charting, (despite and oceanographic services, and the terabytes of quality hydrographic data, development of better environmental data COVID-19 challenges) we were once all eleven surveys are completed. collection capabilities to benefit mariners Further details and imagery is available at able to host strategic meetings, in Australian waters. https://www.hydro.gov.au/NHP/ and we celebrated our centenary.
86 Shipping Australia Limited I Annual Review 2020 S-100 Universal Hydrographic Data Model The increasing uptake and use of electronic navigation across all areas of the globe has prompted the requirement to standardise data to permit easy integration into navigation systems. The AHO has contributed to the development of the International Hydrographic Organization’s S-100 1920 Under CAPT J Robins, the Royal Australian Navy (RAN) Hydrographic Department Standard, a framework that will was established on 01 October 1920. HMAS Geranium was commissioned as the first standardise and enable the interoperability RAN survey ship. of many maritime data products – bathymetric surfaces, under keel 1924 The first un-numbered Australian chart for navigational use was published in clearance management, surface currents, December; ‘Roebuck Bay – Inner Anchorage’. navigational warnings, and maritime limits and boundaries. Ultimately, this will be 1933 Australian Notice to Mariners (NtM) were published for the first time, and from 01 the standard for how electronic charts January 1937, Australian NtM were published on a weekly basis. are compiled and then displayed. The AHO continues to lean in and remain at 1941 the forefront of standards development The first three Australian navigational charts were published on 20 June. to ensure that mariner’s navigating in the 1946 Australian area will have access to the The Australian Federal Cabinet makes a decision that the Commonwealth Naval Board best products and information. will be responsible for surveying and charting of Australian waters. 1964 Rationalisation of paper nautical charts HMAS Moresby (II) was commissioned on 06 March, as Australians first purpose-built survey ship. Australian nautical charts support more 1976 than 6000 vessels, undertaking over The AHO introduces ‘AutoChart’, a system for producing digitised nautical charts, 29,000 international voyages in Australian marking a technological turning point for the organisation. waters. As an island nation, 98 per cent of our imports and exports (by volume) are 1984 The Hydrographic Office Detached Survey Unit (HODSU) commences, undertaking transported by sea. operations in areas from Antarctica to Timor-Leste and throughout the South West Pacific. Commensurate with Defence’s obligations 1988 under the Navigation Act 2012, the AHO Following the Richardson Review, the Government decided that all Commonwealth publishes and updates two nautical chart hydrographic surveying and nautical charting functions should be carried out by the series – an electronic series supporting RAN Hydrographic Service. real-time navigation, including user- 1989-90 selectable levels of detail; and the Four Survey Motor Launches are commissioned into the RAN; HMA Ships Benalla, traditional paper nautical chart series. Shepparton, Mermaid and Paluma. Demand for electronic charts exceeded 1993 The Laser Airborne Depth Sounder (LADS) Flight is accepted into service. 590000 in the 19/20 financial year, while demand for paper charts declined to only 1994 44000 - clearly demonstrating a paradigm The AHO moves to a purpose-built facility in Wollongong. shift in best practice navigation towards 2000 electronic products and services. Two new hydrographic survey ships are commissioned together into the RAN, HMAS Leeuwin and HMAS Melville. The AHO introduced a paper chart rationalisation programme in 2020 2010 following an extensive period of user The AHO officially launches its own in-house Print on Demand (POD) facility. community consultation. Reducing 2011 the paper chart series by 30 per cent is Initial ENC coverage of the Australian charting area is achieved. anticipated to save up to 60 per cent of the 2012 workload required to keep published paper The Navigation Act 2012 is amended, and gives the AHO specific responsibilities for charts up to date. The transition to digital collecting, disseminating and providing hydrographic services as required by SOLAS products will result in increased capacity Convention. and effort focused on enhancements to 2017 electronic charts sought by the Australian The AHO is moved from RAN to Australian Geospatial-Intelligence Organisation Maritime Safety Authority (AMSA), and (AGO) – in a move that brings all geospatial elements of Defence together under the the various State and commercial port same umbrella. Commodore Fiona Freeman, RAN, is appointed as the first female Hydrographer of Australia in December. authorities for Australia’s 71 ports. This effort will result in safer navigation, better 2020 protection of the marine environment, and HydroScheme Industry Partnership Program (HIPP) commences. HIPP is a commercial program that undertakes focused hydrographic survey activities to increased accessibility for trade, commerce contribute to national charting priorities. and recreation.
Shipping Australia Limited I Annual Review 2020 87 The role of paper nautical charts has Hydrographic Surveyors’ Certification CONCLUSION – looking forward, been redefined: Panel (AHSCP), an internationally Hydrographer’s handover recognised body responsible for the • For vessels with a single electronic I am proud to have led the AHO for the professional certification of hydrographic navigation system, those paper charts past three years, culminating in this, the surveyors. In February 2020, that remain are: 100th year of service to our nation. Our the AHSCP published a significant predecessors’ tireless commitment to • Appropriate for use as a backup revision of its ‘Guidelines for Specialist navigational safety and nautical charting to electronic charts, but no longer Certification in Hydrographic Surveying’ means that today’s oceans are now a as a full alternative to electronic and supporting documentation, as part much safer place for mariners than in the charts. of the International Board on Standards past. Our AHO products and services of Competence for Hydrographic • Sufficient to enable a vessel with a adhere to international specifications Surveyors and Nautical Cartographers single electronic navigation system and standards, follow a rigorous review (IBSC) re-recognition process. The to get to a place of assistance in process, and are updated frequently. revised documents fully reflect the the event of their system failing, adoption of the current IHO Standards of We will continue to innovate in the rather than enabling the ship to Competence for Hydrographic Surveyors fields of hydrography, cartography and enter port unassisted. (S-5A and S-5B). geospatial intelligence; we will continue • Most large vessels, in most ports, to improve our systems and processes; The IBSC recognised the AHSCP already receive assistance from our technology will advance and our Certification Scheme for a further 6 marine pilots to enter port, even if people will continue to show the same years (2019-2024), ensuring that the they have dual electronic navigation dedication and passion - now, and into certification process for hydrographic systems. the future. surveyors can continue uninterrupted. The AHO consulted widely on this Our role has evolved since 1920, but our mission has stayed the same – to important endeavour, and I thank AMSA, SWPHC Ports Australia, individual port authorities, deliver outstanding hydrographic and In February 2020, the AHO proudly organisers of the Sydney to Hobart yacht race - cartographic products and services to hosted the South West Pacific the Cruising Yacht Club of Australia - and keep the mariner safe, support Defence Hydrographic Commission (SWPHC) the 800+ domestic commercial vessel priorities in Australian waters, and fulfil Conference in Wollongong, New South operators who completed an online Australia’s national and international Wales. The focus of the meeting was survey for their contribution. obligations under SOLAS. on building capacity in the fields of hydrography, nautical charting and On 18 December, I will hand over my International Board on Standards related navigational safety. With responsibilities as Hydrographer of of Competence for Hydrographic Government, international organisations Australia to CDRE Stewart Dunne, RAN. Surveyors and Nautical Cartographers and industry representatives from 15 I am confident that under his leadership, (IBSC) nations attending, the meeting was the AHO will continue to go from In my role as the Hydrographer of a strong demonstration of Australia’s strength to strength. Australia, I chair the Australasian engagement with the Pacific Island countries.
88 Shipping Australia Limited I Annual Review 2020 NAVIGATION OMC
To build or not to build – that is again the question
By Dr TERRY O’BRIEN AM, Executive Director, OMC International
In 2010, BHP began a lengthy and achieved, DUKC® made available an changes to variables, such as ship loader expensive investigation related to the additional 1.0 metre in draft on average, for rates, vessel fleet profiles, cyclones, channel possible construction of an Outer Harbour each of the eight vessels in the departing depth improvements and asset availability at Port Hedland to increase its iron ore convoy, thereby facilitating an extra $7.6 (tugs, pilots, etc.). The performance of the export capacity by 100 million tonnes million worth of throughput on a single DPCM® has been validated each year since its per annum, to meet its future need. The tide, equating to just under $1 million per development against actual port throughput. estimated cost of the first phase of the vessel. Analyses undertaken utilising the DPCM® project when it was abandoned in 2015 The importance of the resources exports has been the basis by which the declared was $20 billion. At that time, the capacity to the Australian economy, and DUKC®’s port capacity at Port Hedland was of the Inner Harbour was capped at 495 contribution to this vital activity, was increased by PPA in 2015 from 495 million million tonnes per annum. recognised earlier this year by the Federal tonnes per annum to 577 million tonnes Since 2015, OMC’s Dynamic Port Capacity Minister for Resources, Water and Northern per annum, and to its current limit of Model (DPCM®) for Port Hedland has Development in the following statement: 617 million tonnes per annum, deferring shown that major channel improvements the date at which any Outer Harbour “It’s great to see innovative Australian by Pilbara Port Authority (PPA), together development is needed. This increase technology delivering world class safety with growth in the vessel fleet sizes and is more than the additional capacity of the and huge economic value for our resources a number of other enhancements, have $20 billion first phase of the shelved Outer sector. Resource and energy exports are allowed the Inner Harbour cap to be Harbour project, obtained at a fraction of the vital to Australia’s economy and it’s essential increased to its current level of 617 million cost of that project. to ensure safety of shipping whilst optimising tonnes per annum. throughput. DUKC® is facilitating ports to “The additional capacity was the result of With all miners exporting from Port achieve this,” Hon Keith Pitt MP, Minister for ongoing investment in world-leading port Hedland currently seeking additional Resources, Water and Northern Australia, innovations and technology and provides capacity, the question again arises as April 2020. port users more opportunities to maximise to whether to provide this by asking the the amount of product they ship through Port The impact of the COVID-19 pandemic miners to build an outer harbour, or can Hedland,” Hon Alannah MacTiernan MLC, on the Australian economy in the months their increased demands be met by further Minister for Ports, September 2019. following the Minister’s statement would expansion of the Inner Harbour capacity? certainly have been very much greater Clearly, it is most efficient economically to This important question was raised in a than it has been without the cushioning ‘sweat the assets’ of the Inner Harbour to recent report in the Australian Financial effect of the continuing rise in our iron achieve its maximum safe capacity. Further Review entitled ‘Iron ore miners dig in ore exports from the Pilbara. It is clear incremental gains in capacity are achievable for battle over precious port space’ (22 from the present four-way tussle for but they are getting increasingly harder November 2020). In this article, writer additional port capacity at Port Hedland to realise and substantiate. This can be Brad Thompson reported that ‘Iron ore that the mining companies involved are done by analysing the safety and capacity miners BHP, Fortescue Metals Group, still very much concerned with planning for implications of changing operating variables, Hancock Prospecting and Mineral additional growth, which brings us back to such as increased vessel size, reduced vessel Resources are preparing to make their the question of what is the ultimate limit on separation times, increased numbers of tugs competing cases for precious space at the capacity of the Inner Harbour? and pilots, and increased efficiencies in ship Port Hedland after rejecting the West loading operations. All of these variables can Over the 25 years since its inception Australian government’s urging to build a be fed into the DPCM® model to help provide at Port Hedland, DUKC® has evolved $10 billion outer harbour.’ the optimal answer to the ‘build or not to build’ technologically, and in 2017 OMC moved multi-billion dollar question. The growth of iron ore exports from Port to a strategic partnership with PPA to Hedland since OMC’s first DUKC® system better align the capabilities of OMC with Increasing throughput and enhancing safety was installed in late 1995, has been truly the goals of PPA, providing a full range are not the only benefits of the DUKC® astounding by any standards. At that time, of services including DUKC®, DPCM®, suite. It is estimated that by optimising the port throughput was 50 million tonnes per Chart Overlays, DUKC® Optimiser, CROP, sailing draft of each iron ore vessel from the annum. December 2020 marks the 25th dredge optimisation and other value Pilbara, the annual reduction in fuel costs anniversary of DUKC® at Port Hedland adding technologies. for the shippers equates to US$130 million. and annual throughput is currently 538 Furthermore, the associated reduction in The DPCM® is a discrete event simulation million tonnes per annum, more than a CO2 emissions is approximately 1.2 million model of the port of Port Hedland operations tenfold increase in a quarter of a century! tonnes. As the shipping industry moves that incorporates OMC’s Dynamic Under In 1995 there was one miner (BHP) and towards reducing emissions, optimisation Keel Clearance (DUKC®) system. The usually one ship departing on a tide; on 27 of technology such as DUKC® is already purpose of the DPCM® is to provide a tool December 2017, when the record single playing a significant role. to forecast the impact on port capacity of tideShipping throughput Australia of Limited1,589,061 I Annual tonnes Review was 2020 89 PILOTAGE Port Phillip Sea Pilots
Guiding fully loaded container vessel, Maersk Seoul, into the port of Melbourne
Celebrating 180 Years of providing safe passage at Victorian ports
By Captain PETER COURT, Managing Director, Port Phillip Sea Pilots
Since 1839, Port Phillip Sea The gold rush of the 1800s saw many to safely navigate a ship through ships lost at this dangerous entrance to Pilots have been guiding the entrance and into the ports of Port Phillip – known as The Rip. Ship Melbourne and Geelong. ships essential to Victorian masters attempting to enter the bay with industry through the notorious insufficient local knowledge of tidal and 180 years later, the Queenscliff- weather conditions would often come Port Phillip Heads. This headquartered Port Phillip Sea to grief. Pilots remains fully Australian- dangerous body of water has an As a result, a piloting service was owned, providing a world class, 24/7 international reputation as being established in 1839 to provide the local on demand piloting service to its difficult to navigate. knowledge and experience necessary customers.
90 Shipping Australia Limited I Annual Review 2020 Port Phillip Sea Pilots provides on- High speed action When a vessel arrives at the Pilot Boarding demand pilotage for commercial The Port Phillip Sea Pilot team work Ground, it will be met by one of our high- vessels visiting the ports of Melbourne, closely with shipping companies and speed custom-built Pilot vessels. Port Geelong, Hastings, Corner Inlet and their local agents. Once a pilotage Phillip Sea Pilots has a fleet of five pilot supplementary pilotage to Portland. service is booked, pilots are on standby vessels. All of them use self-righting We are proud to provide such a critical to provide the service – which could be technology to manage the risk in the service to the Victorian and Australian required at any time of the day or night. dangerous conditions they operate in. economies. Our Control Room is manned 24 hours These launches allow Port Phillip Sea a day, 365 days a year by our Pilot Pilots to operate in almost all weather Supporting Victorian industry Logistics Team, which allows customers and sea conditions, day and night, to The port of Melbourne is Australia’s to modify their bookings to minimise ensure the seamless operation of our busiest port, for containerised and delays. These last-minute changes to customers vessels. general cargo. A continuous stream of the wide range of vessels that need Once on board, the pilot will proceed to container ships transports goods to and piloting, make having a large and flexible the bridge to discuss passage planning from the port, keeping shelves stocked team of pilots important. with the vessels captain and bridge and export markets serviced. The team, and implement the passage plans skills and expertise of a Port Phillip Sea Port Phillip Sea Pilots have more than and safety management systems that we Pilot are the invisible link in the supply 30 full draft licensed pilots, each of have developed from over 180 years of chain. Shipping and cruise companies whom can pilot any size and type of experience. The pilot has only a short unknowingly face considerable risk vessel. Having our Operations based in time to familiarise themselves with the transiting in and out of the port. Any Queenscliff ensures minimal transit time ship manoeuvrability and equipment incident would result in reputational and for a pilot to reach a ship at the Pilot before they expertly guide it through the financial catastrophe for a shipping line. Boarding Ground, off Port Phillip Heads. entrance to Port Phillip.
Shipping Australia Limited I Annual Review 2020 91 Victoria and Port Phillip Sea Pilots. Our processes and procedures are set to balance those risks.
The hidden team behind the pilots Port Phillip Sea Pilots employees a dedicated team of support staff who ensure our critical, round the clock operation never stops. Our Pilot Dispatch Officers man the 24/7 control room, making sure pilots are dispatched on time, every time. Our team of dedicated marine engineers ensure the reliability Port Phillip Sea Pilots control room and safety of our pilot launch fleet. And our administration team monitor our compliance to international safety, quality and environmental standards.
Our Pilots have unparalleled local government agencies to create and knowledge and ship handling expertise implement a comprehensive COVID Community spirit and are trained to the highest standards business risk plan. Port Phillip Sea Pilots is well known within the industry. for its generous community and industry The plan included everything from co- sponsorships. We are proud supporters ordinating COVID questionnaires from our A new threat – this time it’s onboard of Mission to Seafarers (Victoria). In March control room, social distancing on board 2020 we donated a pilot launch Mavis III to With the COVID pandemic of 2020, Port pilot launches and vessels, sanitising the Queenscliff Maritime Museum. Phillip Sea Pilots face a new danger, and surfaces across all vessels, vehicles this time it’s onboard. With international and buildings, through to the mandatory We are long-term supporters of Cottage crews from around the world, often reporting of illness amongst the crew of By The Sea, a Queenscliff based charity visiting many ports before arriving in any ship boarded. With safety being a for disadvantaged children and recently Victoria, implementing an extensive risk long-standing priority of the company, our donated ten laptops for visiting students management plan to prevent the spread COVID prevention policies and operating to use when on camp. And in January 2020, our pilots donated their time and of COVID on board, is a crucial step for procedures have ensured the safety of our services to help those fleeing Victoria’s our sea pilots. employees, pilots and visiting crews. At devastating bushfires. The Port Phillip Sea Pilots management Port Phillip Sea Pilots, we recognise that team worked extensively with the ships’ crew see us as a risk, as much as For more information about our services, visit Department of Transport and related we see the vessel as a risk to the State of our new web site at www.ppsp.com.au
Mavis III with her crew
92 Shipping Australia Limited I Annual Review 2020 FOR OVER 180 YEARS WE’VE BEEN PILOTING VESSELS SAFELY THROUGH VICTORIAN PORTS.
24/7 OPERATIONS RELIABLE PILOT LAUNCHES No matter what time your ship arrives we’ll be there. Our young fleet of five launches are all self-righting. They are expertly Our control room operates 24/7, 365 days of the year for the ports of maintained by our inhouse team of mechanics to ensure reliability and Melbourne, Geelong and Western Port. safety.
MARINE PILOTING SERVICE AT ALL VICTORIAN RIGOROUS SAFETY STANDARDS PILOTED PORTS The pilot is responsible for safe passage—from the time they assume Our operations cover: Melbourne, Geelong, Hastings, Portland and control from the ship’s master after boarding at sea, until the vessel is Corner Inlet. safely moored. Our operations centre is located in Queenscliff, at the entrance to We are accredited to several international standards and are audited Port Phillip Bay. Pilots can be swiftly transferred to and from ships, every 12 months. minimising time and fuel consumption. ACCREDITATIONS INCLUDE PILOTING ANY TYPE OF VESSEL • ISO 9001 Quality Assurance Standard We have over 30 full draft licenced pilots: We can pilot any size vessel • OHSAS 18001 Occupational Health & Safety Standard. and have the resources to meet changing situations such as weather • ISO 14001 Environmental Management Standard delays, cargo problems or marine traffic congestion. • ISM Safe Operation of Ships Standard Our pilots are shareholders in the company. Your safe, reliable pilotage is our interest.
“Partnering with PPSP to enhance existing navigational practises has produced a systems-based approach focusing on the “shared mental model.” This system equips our bridge officers with information needed for maximum situational awareness to perform to the highest standards expected from P&O Cruises, Australia. It’s been great working with PPSP’s safety committee, who share our vision” (P&O Cruises, Australia).
9-11 Blackwood Street, North Melbourne Victoria Australia 3051 Phone: +61 3 9287 6500 | Email: [email protected]
WWW.PPSP.COM.AU
MARINE PILOTAGE – ALL VICTORIAN PORTS – AUSTRALIAN OWNED EST. 1839 Shipping Australia Limited I Annual Review 2020 93 PILOTAGE Australian Pilotage Group
Strengthened by strategic growth By Captain DAVID MCDONALD, General Manager, Australian Pilotage Group
Australian Pilotage Group commenced national and State/Territory responses, (International Standard for Maritime operations in the port of Melbourne in and the impact those response measures Pilot Organizations). The continual level February 2018, with the strong support were having on the industry, movement of of governance and diverse body of of our foundation client Wallenius goods and most importantly, on people. regulators ensures we maintain and drive Wilhelmsen Ocean, and operating I am pleased to be able to say that due forward the highest safety standards and utilising helicopters to conduct MPT via in no small part to the resilience and practices across industry. winch. Since those early days, APG professionalism of the APG team, we Most importantly, our organisation is has continued to grow our capacity to have been able to successfully navigate customer centric, and without them we service our customer’s needs, increase this unprecedented period of uncertainty would not succeed together. We would our customer base and provide a whilst strengthening our overall market like to thank the continued support of competitive alternate solution for the share and position, and now look forward key clients such as WWO, ANL, CMA provision of pilotage services in the port to what 2021 may bring. CGM, Kline, Swire Shipping, CNCO, of Melbourne. Over the journey we have In 2018, APG entered the market with Stolt Tankers, Dorval Tankers, CSL, BBC, licenced five pilots, with a further two a key commitment to drive the pilotage Neptune Shipping and Gear Bulk, to pilots in the final stages of their initial industry in terms of competition, name a few. training in Melbourne. innovation and safety, whilst ensuring APG remains committed to providing 2020 brought a number of changes to commercial pilotage rates remain at innovative solutions to age old challenges our operating profile, the key one being a responsibly sustainable level for through close collaboration with clients, the cessation of helicopter operations all port users. As 2020 draws to a regulators, port authorities and other key and the adoption of a more traditional close, we are on the path to achieving stakeholders. MPT model. This enabled us to recruit this through the national reach of our additional launch crews and provide a parent company, Auriga Group, and the Safety First, Safety Always, Coming to a long-term employment opportunity for combined expertise and experience port near you! a small number of mariners during a of over 70 marine pilots and 140 years significant economic downturn related to of operational history and continual COVID. We also relocated our primary improvement across the Auriga Pilots operating base to Queenscliff, and are operating division. looking forward to establishing ourselves Auriga Pilots, as an operating division, as long-term members of the Queenscliff hold the largest number of accreditations, community. licenses and approvals to operate In support of the change in our MPT across any pilotage group in Australia. methodology, APG commissioned a new Auriga Pilots have been issued Pilotage build Hart Marine ORC 173 Pilot Vessel, Service Provider licences and approvals due for delivery in March 2021. We are to operate from the Australian Maritime pleased to announce that this vessel will Safety Authority under Marine Order 54, be named the Griffiths, in recognition of Pilbara Port Authority, Department of the decades of service to the pilotage Transport Western Australia, Maritime industry and the support to APG of Safety Victoria and Maritime Safety Captain Charles Griffiths. Queensland. In addition to the regular auditing and engagements with all 2020 was a challenging year for the the regulatory authorities, Auriga majority of the industry, with the Pilots hold multiple accreditations and impact of the COVID-19 pandemic, the quality assurance programmes such uncertainty created by the disparate as: ISO 9001, 14001, 45001 and ISPO
94 Shipping Australia Limited I Annual Review 2020 Advertise here! This prime advertising space is available
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Shipping Australia Limited I Annual Review 2020 95 TOWAGE Smit Lamnalco
Sustainable competition in harbour towage – how do we get there?
By DAVID FETHERS, Managing Director Australia and Papua New Guinea, Smit Lamnalco
2020 marks almost 30 years since the dominates the industry in Australia. The pressure. This has occurred at many provision of harbour towage at the ports potential for monopolistic behaviour by regional ports. Competitive tenders for of Melbourne, Sydney (Port Botany and towage providers is the principal reason the right to operate at multi-user ports Port Jackson), Newcastle, Brisbane, for the current price regulation of harbour for a fixed period likewise could be used Fremantle and Adelaide first commenced towage and the main reason for this to promote more competitive towage as a ‘declared’ service under the Prices inquiry”. The enquiry further found that outcomes”. In effect, the Productivity Surveillance Act 1983. The declaration “Enduring competition within most, if not Commission was supporting the use of was made to address concerns over the all, Australian ports is unlikely due to low what we know today as an ‘exclusive lack of competition in the provision of levels of demand, ‘lumpy’ investments towage license’. harbour towage. and economies of scale. In the longer Return to present day and several term, only one operator is likely to Eleven years later, in 2002, the port operators have implemented the survive in any particular port”. Productivity Commission again looked at exclusive licensing regime, whereby a whether harbour towage should continue To overcome barriers to entry, and to tender is held up-front for the provision as a declared service. The enquire found encourage competition, the enquiry went of towage services for a fixed period. “in nearly all Australian ports, there is on to recommend that “Contracting and The system benefits port users, in that only one provider of towage services. licensing can be used by towage users certainty of efficient pricing is assured, as Moreover, one company currently and port authorities to exert even more well as providing operators with revenue
96 Shipping Australia Limited I Annual Review 2020 Dedicated to the extreme
Smit Lamnalco provides first-class, reliable and customised towage and marine services in Australia and PNG. No matter how remote or complex the operation, we are dedicated to exceeding expectations.
DiscoverShipping Australia Limitedthe I Annualpossibilities Review 2020 at smitlamnalco.com 97 security and therefore, the confidence that exclusive licenses contain a fixed is also a viable option, provided a to invest in a fit-for-purpose tug fleet pricing escalation formula, therefore competitive and open tender process is that meets the operational profile of the the prospect of an ambit pay claim completed up-front. port. A slightly modified ‘non-exclusive’ succeeding is highly unlikely. Certainly The third option, and the one which licensing process also appears to be there is some complexity around the would benefit our capital city ports, are gaining popularity, where a tender is requirement for the port operator to multiple non-exclusive licenses with held to lease the only suitable tug berths engage with the ACCC for an ‘exclusive mandatory inter-hire arrangements within a port. In effect this results in an dealing’ with one towage operator. between operators. The inter-hire almost identical outcome for port users However, this process is now well arrangement prevents over-capacity, as and towage operators as the traditional understood, with enough historical data operators can ‘borrow’ a tug from each exclusive license. being available to comprehensively show other when operationally required. This the public benefits of exclusive licenses. practice is common in other parts of the Returning to the original 1991 list of world. ‘declared’ ports: Melbourne, Sydney As a hypothetical, consider a port (Port Botany and Port Jackson), requiring six tugs total, where the Newcastle, Brisbane, Fremantle and majority of ship moves are completed Adelaide have all had vastly differing with two tugs, three tugs are used competition landscapes over the years. occasionally, and once in a blue moon However, except for Smit Lamnalco’s there is a four tug move. This port could recent investment in the Engage Towage most efficiently be serviced by two business, which is far too embryonic to operators, with three tugs each, and consider at this point, there is no on- with a mandatory inter-hire agreement So does exclusive licensing work? water competition occurring in any of in place. There is no additional capacity Figure 1 shows the current towage these major capital city ports. Indeed, required above the operationally required costs for Handy, Panamax and the same monopolistic position that six tugs, the port and customers are Capesize vessels within the ‘open’ was flagged in 1991, still exists in 2020. fully serviced, and multiple operators port of Newcastle verses the exclusive This is despite the best efforts of AMS, are sustainably competing on price and licensed port of Gladstone. Both PB Towage, and Smit Lamnalco, all of service. Depending on the size of the ports are of similar size and with a whom have been unable to maintain port, the concept can also work with comparable operating profile. As can sustainable on-water operating positions. three or more providers. be seen, there are substantial savings The problem has been compounded for port users under an exclusive Apply this model to the previous recently with several non-exclusive license, with an average 37 per cent example in Port Botany and Port licenses being issued by port operators, lower cost per tug job. Jackson, and any enquiring mind would which stipulate service standards reasonably have to ask “why do we now and fleet composition but neglect to need the cost of 12 tugs, when the ports consider the commercial reality of these have been serviced adequately for many requirements. Case in point, the recent years with only six?”. The answer is that introduction of non-exclusive licenses port operators are unwilling to mandate in Port Jackson and Port Botany, which inter-hire arrangements because they require each licensee to maintain a fleet are reluctant to “wade into” commercial of five tugs, plus provide one operational matters. However, I would argue spare. All seems reasonable until you that directing inter-hire is more about realise that the total towage revenue of implementing what is required to finally the two ports is less than the fixed cost enable a sustainable, competitive towage of operating 12 tugs. Eventually this market. If that means port operators Figure 2 shows data for the similarly results in either towage costs going up to need to “wade into” the commercial sized open port of Adelaide verses the support the additional vessels and crews ocean, then that is what needs to exclusive license operating in the port of or, more than likely, one of the operators happen to satisfy the market’s desire for Townsville. As can be seen, the same being forced to leave the market. Either sustainable competition. trend exists as per Figure 1, with an way, towage costs go up for port users. average 30 per cent reduction in towage Who is up for a swim? In my many discussions with shipping costs in the exclusive license port. companies and port operators around Augments against the exclusive the country, there would appear to be license concept include the potential an overwhelming desire for sustainable for industrial action against the single competition in harbour towage. So how operator to close an entire port. Whilst do we get there? Exclusive licensing this is true for any port where a single is a proven and efficient model that operator exists (as has been seen works well in ports with steady-state recently), Smit Lamnalco’s experience is operations. Non-exclusive licensing that unions and employees understand where only one tug berth can exist
98 Shipping Australia Limited I Annual Review 2020 STEVEDORING AND TERMINAL OPERATORS Patrick Terminals
Patrick Rail Terminal under construction at Patrick Terminals – Sydney AutoStrad
Patrick Terminals: Continuing to deliver investment and innovation
By MICHAEL JOVICIC, Chief Executive Officer, Patrick Terminals
Throughout 2020, Patrick The investment at Patrick Terminals standards, with greater customer visibility Terminals has continued to operations has included world-class delivering even further improved customer rail infrastructure, significant equipment service levels. invest in infrastructure to deliver procurement and terminal technology At each of our terminals, specific increased capacity and efficiency upgrades. Major capital procurement has investment has delivered a step-change included new quay cranes, straddles, rail at all four Patrick terminals, in operational improvements. Patrick development in Sydney, terminal operating throughout Australia. With over Terminals - Fremantle installed a ZPMC system upgrades and Fremantle terminal Post Panamax Crane to service larger $150 million in capital expenditure redevelopment. The upgraded terminal vessels, with 19 container width capability, in FY 2020/2021, Patrick Terminals operating system rollout commenced in in early 2020. Patrick Terminals – is leading the market with Melbourne, with all terminals completed Melbourne commissioned two ZPMC Post by November 2020, with the upgrade improvements in infrastructure at Panamax cranes with 19 container width of the final terminal, Brisbane. The new Australia’s ports. capability, and four new straddles. Whilst system delivers best-in-class international
Shipping Australia Limited I Annual Review 2020 99 potential safety risks throughout the supply chain, from transport companies to terminal operators and shipping lines. This new weighing solution, Pondus, will help identify mis-declared weights by statistically sampling containers for weighing, and then automatically notifying customers of weight discrepancies (+/- 1 tonne) allowing parties to better meet their Chain of Responsibility obligations. Since July 2016, the International Safety of Life at Sea Convention (SOLAS) has required shippers to obtain and document the verified gross mass of a packed container, prior to vessel loading. This Pondus Stand at Patrick Terminals – Brisbane AutoStrad is a legal requirement. A mis-declared container has potential implications for safe loading of vessels, sea voyage and road transport. in Brisbane, two new straddles were added Stage one of the rail project is on track for to the fleet and a new Liebherr crane is completion by end of 2020, with stage two With the new Pondus system, both scheduled to arrive early 2021. set for completion mid-2023. The new import and export containers will be rail terminal will increase rail capacity from statistically sampled for weighing on Patrick Terminals – Sydney AutoStrad 250,000 TEU to, in excess of, 1 million the Pondus stand, and mis-declared has seen significant investment in six new TEU, connecting Port Botany directly with containers will have a charge placed straddles and the $190 million port side intermodal terminals and regional markets. on the relevant transport company for rail terminal, in conjunction with NSW imports or shipping line for exports. Ports, to improve rail efficiencies and The significant capital expenditure by Numbers weighed will be governed by reduce truck movements around the port. Patrick Terminals will deliver superior what is reasonably practicable given the With an additional Liebherr ship to shore landside service, improved operational circumstances prevailing at the crane (Australia’s largest) scheduled to efficiencies, improved safety, increased time. The certified and automated Pondus arrive in early 2021. This new crane will capacity and best in class customer platform precisely weighs a container deliver unrivalled large vessel capability, service levels, throughout the operations. to the National Measurement Institute with the four largest ship to shore cranes requirements in seconds on purpose built, in Australia, and access to the deepest Step Change in Safety for Container calibrated load detecting instruments. draft container berth in the port of Sydney, Transportation The Pondus Stand then automatically offering a premium direct access to the Patrick Terminals recently launched an interfaces with our system to report most efficient landside rail connectivity. innovative weighing solution to help drive accurate container weights to the party The additional Liebherr ship to shore crane safety across the container handling transporting those containers. will increase the Patrick total crane fleet in sector. Mis-declared containers create Port Botany to nine.
Pondus Weighing Process
100 Shipping Australia Limited I Annual Review 2020 STEVEDORING AND TERMINAL OPERATORS Hutchison Ports Australia
2020 – it’s been a big year!
By JOHN WILLY, Chief Executive Officer, Hutchison Ports Australia
COVID-19, industrial action, EA COVID-19 has affected everyone and Hutchison Ports Australia interfaces negotiations, approval to operate safety must come first! with a number of key players within the supply chain, and apart from stevedoring taller quay cranes, recruitment There is no doubt that COVID-19 has affected every Australian in some way, ships, the business interacts with rail of new employees, stellar trade since the start of the pandemic early in operators, trucking companies, as well growth in the industry and winning 2020. For Hutchison Ports, managing as other commercial and government a new shipping service contract, two major container terminals in parties that have a stake hold in terminal Australia is a complex affair, and relies operations. With the outbreak of all happened in 2020! It was a COVID-19 early in 2020, Hutchison Ports big year for Hutchison Ports in heavily upon having sound processes and procedures in place to enable the immediately developed and implemented Australia, filled with unusual events business to operate effectively and strict measures to safeguard all its never seen before in its eight years in compliance, so as to deliver the employees and visitors from contracting of operations. necessary services to customers in a the contagious virus. The biggest safe and efficient manner. COVID-19 has challenge faced by the company was put an additional layer of demand on the keeping up with the advice on COVID organisation, which was necessary in from various government departments order to keep everyone that is physically and authorities, and then applying involved with the business safe at all the relevant safety information to the times. workplace. Unlike staff in a corporate office environment where ‘work from
Shipping Australia Limited I Annual Review 2020 101 additional vessels on the trade. Thoughout the events of the year, Hutchison Ports secured a new shipping service in Sydney off the back of strong growth in the container trade. Operated by Gold Star Line, a wholly owned subsidiary of the parent company ZIM, the new service emerged in the latter part of the year to take on the heavy southbound liftings from China.
What comes in must go out – evacuation of empty containers The surge in import container volumes in 2020 and the imbalance of the trade due to the weak export market, left most shipping lines with a heavy surplus of empty containers in Australia, and specifically in Sydney. The additional vessels deployed to Australia, which brought in even more import cargo compounding the empty container problem. This was a serious challenge for the shipping lines during the year and Hutchison Ports Sydney came home’ was an option, the 300 plus Stellar gowth in the container trade to the rescue by offering assistance stevedoring employees and operational The second half of 2020 saw a boost in with stevedoring vessels to help with and engineering managers remained in container volumes on the east coast of the evacuation of empty boxes onto the workplace to ensure ships, trucks Australia. Most shipping lines reacted vessels bound for Asia. Hutchison Ports and trains were serviced on a 24/7 basis. to the increase in demand for goods provided help to its direct shipping This was a particularly hectic time for the from China by adding more ships to the line customers, as well as helping entire management team, and a job well trade, which put tremendous pressure other adhoc lines that were not regular done by all staff and employees that kept on stevedoring resources, especially in customers. Both Hutchison Ports the flow of containers moving during the Port Botany. It was unfortunate timing and shipping lines worked together to height of the pandemic in Australia. that the strong growth in the market met maximise the empty load out using every with resistance by storms and inclement possible vessel slot, whilst minimising Taller quay cranes for taller vessels weather in Sydney, which slowed down the delay to service schedule. Hutchison Ports received good news from stevedoring operations on a number of ocassions during the latter part of the the Federal Department of Infrastructure New jobs for new people during the year, with an approval to year and, at times completely stopped With the sudden growth in container operate a new generation of tall quay all work at the port. Furthermore, the volumes in Sydney, and increases in cranes that will enable the Sydney sitiuation was exascerbated by the vessel exchanges in Brisbane, Hutchison terminal at Port Botany to handle vessels maritime union taking protected industrial Ports opened its doors and welcomed over 13,000 TEU capacity. Operating tall action from enterprise bargaining at a a number of new recruits into the quay cranes that penetrate the air space number of terminals, which, together stevedoring industry, with offers of jobs of Sydney Airport requires consent from with the weather, caused severe delays at both terminals. The ab initio recruits a multi-layer of organisations, including to vessel arrivals into Port Botany. The were introduced to the fundamentals of the airport, aviation regulators CASA and delays in Sydney reached a point where stevedoring and trained to perform basic ASA, with endorsement from the Federal shipping lines were unable to fully load tasks. Newcomers with the aptitude to Government. their vessels, and this resulted in the biggest build up of empty containers perform more complex stevedoring tasks The next generation of quay cranes in ever seen in Sydney. Delays were so will, over the next few years, be given Sydney will have a structural height of severe that a number of lines omitted to the opportunity to upskill and progress up to 78 metres AHD and an outreach call Sydney. through the organisation. to service ships with a beam of over It was refreshing to have new people 20 containers wide. This capability will Hutchison Ports Sydney was able to enter the industry without a stevedoring ensure Hutchison Ports will be ready help ease some of the congestion within background. The latest generation of to handle the bigger container vessels the port by assisting with stevedoring recruits have brought a new perspective expected to enter the shipping industry vessels that were seriously impacted by to the job and most importantly, they in the future, as the container trade delays at other container terminals within all came with a positive mind and contiunes to grow. Port Botany, as well as helping to handle those shipping lines that deployed enthusiasm to get the task done.
102 Shipping Australia Limited I Annual Review 2020 A new Enterprise Agreement …. new EA is expected to be signed and It is well known that the financial impact sometime soon? executed in 2021. Hutchison Ports is of building port infrastructure in Australia, Negotiations for a new Enterprise most grateful to its valued customers and procuring new equipment from Agreement (EA) between the company who have been extremely patient overseas, is high cost. The mode of and the Maritime Union continued in throughout the negotiation process. operation for Hutchison Ports in the 2020. As a relatively small player in the future will be a design that will deliver an market, Hutchison Ports is seeking a Future expansion acceptable return on investment for the shareholders, and it will also produce a workplace contract with its employees Hutchison Ports Australia continues to high level of efficiency and performance. that provides flexibility and efficiency in provide a valuable service to shipping Shipping lines want good crane the use of labour. Ships do not always lines, transport companies and rail productivity during loading and discharge arrive on time at the allocated ‘berth operators, as well as the broader supply of containers, and a quick vessel turn window’ because of upstream delays chain. The Hutchsion business has the around time in port. from bad weather and rough seas, and honour of serving the biggest names in this is where flexibility in a new EA to the shipping industry, including Cosco There is no doubt that automation meet the needs of the shipping line Shipping, Orient Overseas Container and smart technology is the key to customer without increasing the cost of Line (OOCL), ANL (part of the CMA CGM future developments in Australia, and labour, is essential. The company has group), Hapag Lloyd, Hyundai Merchant automation will underpin the design of offered pay rises and rostered conditions Marine (HMM), Evergreen Marine the ‘container terminal of tomorrow’. The that the workforce want in a new EA. Corporation (EMC), Ocean Network benefits from investing in automation The company stated during negotiation Express (ONE), ZIM, PIL and TS Lines. are enormous, and apart from keeping meetings that it cannot accept further operating costs down, will also deliver Hutchison Ports Australia recognises the claims that will increase operating costs. a consistent level of productivity that is need to expand as demand for terminal required to stevedore big vessels with big Waterfront EA negotiations on pay capacity grows. The timing of expansion container exchanges, and avoid delays and conditions, which also includes is one that will depend on many factors, to vessel schedules by keeping time in union claims, are traditionally a lengthy taking into consideration the need for port to a minimum. process, and Hutchison Ports is no additonal berth windows (time slots), exception to the historical trend. A growth in the trade and vessel upsizing.
Shipping Australia Limited I Annual Review 2020 103 STEVEDORING AND TERMINAL OPERATORS Australian Amalgamated Terminals
Raising the bar
By ANTONY PERKINS, Managing Director, Australian Amalgamated Terminals
Australian Amalgamated Terminals (AAT) Park Ship to Shore Crane providing an leaving containers hanging over the is Australia’s largest mixed cargo terminal extensive cargo handling capability. edge of the vessel. The versatility of the operator, with operations across the new Liebherr LPS 550 crane saw AATs AAT worked in collaboration with Australian eastern seaboard in Brisbane, Fisherman Islands terminal as the logical Liebherr and the Port of Brisbane to Queensland, Port Kembla, New South terminal to handle the salvage operation. ensure that the design and assembly met Wales and Melbourne, Victoria. AAT the manufacturers exacting standards, With an outreach of 54 metres and safe provides non-discriminatory facilities, and was in accordance with strict working load limit of 144 tonnes, the shore-side services and operations to wharf specifications. Prior to arrival in LPS 550 provided significant scope for approved and licenced stevedores. Australia, the crane was fully assembled stevedores to safely perform a vast and AATs Fisherman Islands terminal in and tested at the Liebherr factory in complex stevedoring operation. QUBE Brisbane comprises three berths totalling Rostock before being dismantled for Ports, the appointed stevedore, were 697 metres of quayline, with approximately shipping to Brisbane. tasked with completing the operation, 27 hectares of cargo marshalling which included rigging and scrupulously In support of the crane acquisition, prior hardstand. Since commencement at unloading approximately 87 containers to arrival, the Port of Brisbane undertook Fisherman Islands in 2006, AAT has affected by the collapsed stow. a major refurbishment of the existing made significant strategic investment crane rail infrastructure over a five month The containers were unloaded safely in terminal development, cargo sheds, period to ensure precision alignment for and meticulously without incident, management systems and mobile cargo the new crane bogie wheels which have and saw extensive communication handling equipment, providing for a range five millimetre margin of tolerance. and collaboration between all parties of services, including stevedoring, cargo including AAT, Qube, ANL, Port of storage, biosecurity and receival and A specialised team of engineers from Brisbane, Maritime Safety Queensland, delivery functions. Germany commenced construction of Australian Transport Safety Bureau, the crane in early February 2020. The AAT’s equipment includes a full range of Australian Maritime Safety Authority, escalation of the COVID-19 pandemic service vehicles, forklifts and cranes to Queensland Fire and Emergency forced the team to return to Germany handle a variety of cargo, including dry Services and Queensland Police with assembly completed by a team of bulk cargo, containers, motor vehicles, Service. The LPS 550 crane provided Australian-based Liebherr engineers. steel products, timber, agricultural and significant capability for a dangerous and Following the eightweek construction, mining equipment and project cargo. problematic situation. assembly and testing process, the crane AAT continues to modernise its was commissioned for operational use. Since commissioning in May 2020, equipment to facilitate increased the LPS 550 has been used by QUBE Shortly after commissioning, the productivity and efficiency across Ports and Linx stevedores at AAT capability of AATs new Liebherr crane stevedoring operations. The recent Fisherman Islands to discharge and was highlighted, providing a critical acquisition of a Liebherr LPS 550 Rail load a variety of cargo, including service to the shipping industry. In May Mounted Portal Boom Crane, sourced containers, steel and heavy lift project 2020, the APL England encountered a from the Liebherr factory in Rostock, cargo. The addition of this crane to the collapsed stow, following rough weather Germany in 2019, expanded AAT’s fleet in Brisbane provides a significant off the coast of New South Wales. En- fleet of shore cranes to three, with the benefit to AAT’s valued clients and the route to Melbourne from China, the Gottwald Mobile Harbour Crane, Deer shipping industry. rough seas caused the stow to collapse,
104 Shipping Australia Limited I Annual Review 2020 STEVEDORING AND TERMINAL OPERATORS Melbourne International RoRo and Auto Terminal Pty Ltd
Collaboration is the silver lining
By JED SMITH, Head of Commercial and Stakeholder Management, MIRRAT
2020 has been a year like no other, Without stating the obvious, the COVID-19 Vessel calls have improved as volumes a phrase that’s been repeated time pandemic has indeed hijacked our focus, slowly recover from the low water mark and the majority of our energy. The goals of Q2. However, uncertainty remains in and time again over the past few we set out to achieve as an organisation our forward projections as we consider months, while cliché its sentiment back in 2019 were promptly sidelined, as the question - are we shifting from an rings true for the team at MIRRAT. responding to the COVID situation took issue with supply to one of demand?, as center stage. Rapidly shifting priorities Government stimulus and support rolls meant non-essential capital works, fleet back over the coming months. investment, and outsourced services Churchill said, “never let a good crisis made way for procuring and securing go to waste,” and despite the challenges PPE and temperature guns, hunting for 2020 has presented, it has also provided hand sanitiser and toilet paper, while opportunities, partially around process transitioning our administration team to improvement and product development. remote working. These measures aimed to protect and provide our operational Social distancing guidelines forced us staff and terminal users with the safest into reengineering manual processes, possible environment, enabling them to which has supercharged our digital continue to provide services and support transition. Tools and concepts we had the automotive and RoRo markets. been trialing, have been fast-tracked and are now part of our everyday operations. In hindsight, our proactive approach and Self- services and contactless deliveries decision to take early action has held us are two examples of innovative change, in good stead. The proof lies within the designed to reduce person-to-person fact that all staff and terminal users have interaction, drive efficiency, and improve remained safe, and not a single vessel our customer’s ease of doing business. has been delayed, even during the height of the Melbourne lockdown. For a facility Reflecting on 2020, the most positive that averages over 200 visitors a day, this thing to have come out of these unique has been no easy task. circumstances has been a pronounced shift in mindset, and perhaps a resetting The economic impacts have been just as of priorities across our small industry testing. Despite COVID, 2020 was shaping segment. A real sense of community up to be relatively weak following on from has evolved, driving a willingness to the trends of 2019. COVID compounded collaborate and find solutions that benefit these forecasts. Factory closures in the industry as a whole. Europe, Asia, and the US turned the tap off across all our major trade lanes for several We have long advocated that working months, reducing supply chains to a trickle, together will create efficiency, and we and creating an oversupply of tonnage, are excited to build on the relationships resulting in vessel layups and, in some forged over the past 12 months, to cases, early recycling. These measures by develop opportunities and realise the governments, OEM’s and vessel operators, possibilities they represent for our while absolutely appropriate, translated to customers, terminal users, and the a 54 per cent reduction in vessel calls and industry as a whole. a 50 per cent fall in volumes during May, Bring on 2021. June, and July at MIRRAT.
Shipping Australia Limited I Annual Review 2020 105 SUPPORT AND INNOVATION Serco Asia Pacific
2020 – An experiment in the challenges of building and supporting Australia’s Navy
By CLINT THOMAS AM CSC, Managing Director, Serco Defence
As one of Australia’s largest maritime activities to BC 20, both vessels were service operators, Serco Australia has successfully docked and given clean bills built a solid reputation for delivering under the sage supervision of the Serco flexible and cost-effective naval support engineering and management teams, with services to the Commonwealth, over the the vessels again fit for service until their period of the last 20 years. Our team has next five-yearly docking. designed, built, introduced into service, The year has also witnessed Serco and operated well over 100 small, and growing on a global basis, with the 18 large auxiliary vessels, and we are company moving to reinforce our ability currently managing a total of over 1000 to support our naval customers, with the waterfront assets. Serco continues recent acquisition of the ALION Naval to provide flexible crewing options in Systems Business Unit, now titled the support of Royal Australian Navy (RAN) “Maritime Engineering Technology and operations, and we will very shortly Sustainment” business unit, or METS for commence operating and providing short. METS effectively means that Serco logistic and maintenance support for can now bring an unchallenged naval the Australian Antarctic Division (AAD) design and maintenance workforce to bear Research Supply Vessel (RSV) Nuyina. on any problem, anywhere in the world, Notwithstanding the obvious challenges A key demonstration of Serco Australia’s whether that be designing and building that Australia’s maritime industry has faced resilience has been the ongoing build new vessels, or updating and maintaining throughout the 2020 COVID pandemic, and delivery of the RSV Nuyina. Not only older craft. Specifically for our Australian Serco has continued to successfully deliver did the team quickly identify the ‘hands- customers, the METS acquisition enables services across the full spectrum of our on’/’face-to-face’ implications of COVID Serco to bring an unparalleled level of maritime activities, with tasks ranging from on our planned delivery activities, but they expertise and experience into our product short-notice in-harbour support to the moved with purpose to quickly reorient delivery portfolio, with a deep technical RAN, as a part of the Commonwealth’s plans and moved the ship from Romania reach-back capability across all military response to the Christmas 2019 bushfires, to the Netherlands, in order to complete vessel types, spanning from Army landing through our ongoing commitment to the fitting out process. We expect to craft, through “all’ United States Navy, delivering world-class mariner training, proceed to sea late 2020. Since contract Canadian Navy, and Royal Navy ships, in both Australia and New Zealand, signature in 2016, Serco’s project team submarines and naval auxiliaries. Serco and inclusive of our ongoing specialist demonstrated they have the wherewithal to Australia is already moving to transition maintenance of the RAN’s Typhoon and overcome the tyranny of distance, through some of these key naval design and Toplite weapon system at various bases the extensive use of digital design tools engineering skills into Australia, and has around Australia and in New Zealand. and ‘on-line presence’ technologies to now established an Engineering Graduate 2020 also saw Serco’s team deftly navigate redefine what shipbuilding should look like programme to facilitate the growth of a the managerial and personnel challenges in the 21st Century. sustainable pool of local talent as our wrought by COVID affecting the Set-to- In November, Serco’s Team supported contribution, as a part of the Government’s Work and Acceptance programs on the the RAN’s Black Carillon Submarine Naval Shipbuilding and Sustainment Plan. Nuyina. Without exception, Team Serco rescue exercise (BC 20), with the Serco For more information on Serco’s has risen to the myriad operational and crewed MV’s Besant and Stoker working expertise, visit https://www.serco.com/ administrative challenges presented by hand-in-glove with RAN specialists to aspac/sector-expertise/defence 2020, and I can proudly boast that the again demonstrate the flexibility and team will enter 2021 with the same gritty professionalism civilian crews can bring determination and agility, ready to face to support naval operations. As precursor whatever the future throws our way.
106 Shipping Australia Limited I Annual Review 2020 CONTAINER MANAGEMENT 1-Stop Connections
Data is the new oil: How big data is transforming logistics
By MICHAEL BOUARI, Chief Executive Office, 1-Stop Connections
The phrase ‘data is the new oil’ has entered data be broken down, analysed for it to This type of data is called ‘look back the world of freight logistics to suggest have value.” information’. It was used to solve a commodity without which the industry problems like: grinds to a halt. That’s certainly one Big data vs lots of data “We’re using more fuel for the fleet than interpretation – many sectors of industry The importance of big data to freight has we did last quarter? Let’s get rid of a few would become redundant if data stopped grown over the last decade. However, vehicles to reduce our costs to what they flowing. But there has always been data, some people – while acknowledging used to be.” and to understand the impact of the there’s more data around – have failed to phrase, it needs to be put into context. realise there’s a difference between ‘lots The effect of making a decision like that, based on that level of data, will be The quote was attributed to UK data of data’ and ‘big data’. obvious to anyone who has worked in a scientist Clive Humby, in 2006. Michael The former is a relic of a time, when data company with a complex infrastructure. Palmer, of the Association of National was a commodity companies sourced The results will be arguments over Advertisers, later expanded on it: from accounting records. Having ‘lots which vehicles should be culled, from “Data is just like crude. It’s valuable, of data’ meant a company could answer which divisions and why. The process questions like: but if unrefined it cannot really be used. of settling on a solution that satisfies It has to be changed into gas, plastic, “How much fuel did our fleet consume everyone, often results in a compromise chemicals, etc. to create a valuable entity last quarter?” or “How much does it cost solution because there’s not enough that drives profitable activity; so must us to send freight from A to B?” information about where the fuel increase
Shipping Australia Limited I Annual Review 2020 107 is coming from, at what times of the day data. But what’s driving big data that The 1-Stop platform solution and under what circumstances. makes it more valuable? What makes The place where the big data ‘oil’ receives data ‘the new oil’? In freight logistics, there are similar its refining is just as crucial as any oil problems. For example, a shipping The answer is the Internet of Things (IoT). refinery. It is the hub of any IoT solution company may be experiencing delays This refers to the transformation of the because it enables the data gathered and when freight is sent via a particular internet from a network of information networked by the IoT to be processed forwarder. No-one can identify the fed into it from external sources, to a into meaningful information. After that, problem, until it’s discovered that the network that gathers information from its decisions can be made automatically by office in question doesn’t have a rate own sensors. An array of sensors can the system, or by management. sheet for that freight type. be attached to animate and inanimate 1-Stop Connections view to be the objects, then wirelessly connected to Time is being wasted because the office platform of platforms fits in well with the the internet and the end user. Cows can is recalculating forwarding charges ‘data is the new oil’ because it connects be tracked through GPS-enabled ear based on outdated rates which are not your existing freight software, and links it tags; the speed of a power turbine can matching the invoice figures issued by to 1-Stop’s IoT framework. be monitored; the location of a shipping the shipping company. container known with pin-point accuracy. The advantages of being connected to In both these cases, referring to ‘look a platform that’s in turn connected to The advantage of the IoT is that the data back information’ will not help cut fuel so much data are savings in time and is being updated in real time. No more costs or make a freight route more money. What that adds up to are better guessing where a container is, if it left efficient. To do that, a company must results for your bottom line. Shanghai two days ago – a quick check have access to big data. of its unique chip-powered tag will show It’s time to start refining your company’s exactly where it is, what it’s temperature data oil into an ongoing source of Big data and the Internet of Things is, and even how fast the ship is moving. enrichment by taking the next step with We’ve established that there’s a It’s as if the container is phoning home. 1-Stop. To find out more about our vision difference between lots of data and big read more on our website: 1-Stop.com
108 Shipping Australia Limited I Annual Review 2020
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