Interconnect November 2015

In this Issue

Port Automation POAL’s Very Independent Point of Difference

Our Great New Tools Interconnect November 2015

CONTENTS 2 POAL Focus POAL Focus 4 Operations Review space to hear about more links in Heart Transplant Automation our supply chain. It’s an exciting State of New Berth Built for Three development that enables us, in conjunction with our hub operators the Art in 6 Supply Chain and our 4PL logistics provider Spreading the Net Nexus, to improve options for NZ Cement cargo owners, to reduce their costs 8 Nexus and facilitate the most efficient flow of is now host to a POAL’s Point of Difference of their cargo across NZ. We have state of the art, huge white, 30,000 successfully implemented our new 10 Development tonne capacity cement storage Port Connect port operating system (Navis N4) dome owned and operated by Great New Tools in July as part of our plan to use technology better and become a Holcim, a major supplier of cement, 12 Market RoundUp smarter port. N4 will support other aggregates and ready-mix concrete smart initiatives such as using to the NZ market. The inflated dome Editorial: Anne Hunter Front cover photo: Looking back at Auckland Optical Character Recognition (OCR) is part of Holcim New Zealand’s city from the heights of a ZMPC crane on to speed up handling at the terminal. Fergusson container terminal he 2014/15 financial year be possible without our customers vigorous. However looking further NZ$100M restructuring which

Back cover photo: Ports of Auckland’s new was a good one for Ports of and supply-chain partners, so I’d ahead, Auckland’s story is all about includes the dome in Auckland and landscape featuring the recently constructed Auckland despite a number like to thank you for your continued We are also consulting staff and Holcim white dome shaped cement silo T growth and to accommodate that we a similar new facility at PrimePort carrying out a scoping study on a of challenges. Our performance support. Recognition of our are making significant investments in Timaru. continued to improve and, as the performance came in September rail, on-port and the off port supply proposal to partially-automate the official statistics show, our container with POAL’s selection as a finalist chain. We have greatly increased container terminal. Automation has Holcim says the Auckland terminal terminal is now the most efficient in for the Terminal Operator of the Year our use of rail with a quadrupling in the potential to deliver capacity and will provide effective access to the Australasia with record productivity in the 2015 Lloyd’s List Asia Awards rail connections between the port performance benefits and ensure we this year. That is a major achievement – the only port in the Southern and our Inland Port at . That continue to perform at world class major market of the greater Auckland and one that we hope makes our Hemisphere to be shortlisted. has resulted in 3,000 less truck levels. and the upper North Island. The customers happy and Aucklanders Whether we win or not, the fact that movements a month to and from the dome is in the process of being proud. We also delivered a good we are up among some of the world’s terminal. Our goal is to move 35% of Finally, thanks again for your strengthened and fitted out and is financial performance and another biggest and best port operators is a our total throughput on rail. continued support. May you enjoy expected to be fully operational real win for our team. strong dividend for Auckland. a busy and productive peak season within the third quarter of 2016. Tony Gibson We have developed a network of and a happy and relaxing festive CEO Ports of Auckland Container volumes hit another record Things look tougher for the next intermodal freight hubs – so far at season to follow!

– after having been expected to fall financial year with a slower economy Wiri, at Longburn in the Manawatu – and multi-cargo volumes boomed, a lower dollar and lower commodity and most recently at Mt Maunganui 2 especially cars. None of this would prices. Growth is unlikely to be as in the Bay of Plenty. Watch this Operations Review Interconnect

Heart Transplant Automation and Expansion

Automation is among the advances computer – the type of task that the enabled by the new system including system takes over automatically. such tools as OCR – Optical So, we take out the boring tasks Character Recognition Cameras and that people don’t function well at PDS – Position Detection Systems It was a heart and lungs during the implementation and but retain a significant element of – both designed to reduce damage, transplant – a job rarely to ensuring the process went engaged labour while increasing their speedup and streamline container undertaken without a shutdown smoothly. “We knew about the stacking and retrieval in the yard and engagement with tasks people are period or a serious amount difficulties experienced by other at the gates. inherently good at and enjoy doing. of customer pain. So it was ports so we were able to learn Automation is all about how well you that in July 2015, without any and benefit from them”. Raoul Borley explains that the port handle exceptions; people are good noticeable shutdown, POAL is half way through a consultation at exceptions, machines are not.” introduced its new operating A modern system on a modern process with staff about a proposal system, Navis N4. In the switch platform, N4 is shared by the to partially automate the container New Berth Built majority of ports in NZ and If automation proceeds then POAL over from the old SPARCS terminal. A decision will be reached around the world – at 118 would be the first automated system to going live with N4, early in 2016. He explains that the for Three terminals in total and counting. container port in NZ. “We have the implementation process proposal would involve the use of ”That commonality allows us to some unique ideas and innovative was recognised ‘the best 15.5m high automated straddle share information and brings a in Australasia’ by Navis, by carriers that can stack containers approaches that we believe would high level of support. Essentially other ports who had suffered up to four high (3m higher than make our version of automation, A contract was signed for the the completion of the new berth. “We N4 enables easy interface with through glitches in their own existing machines in the fleet that a global game-changer. We would construction of a new northern berth are currently evaluating what cranes new technologies and tools system implementations and, stack three high) to carry out the like to lead the world – not just NZ at POAL’s Fergusson Container we will buy but I can say we will be that will have a big impact on most importantly, by POAL less complex tasks in the yard. – in a version of automation that we Terminal and wharf in September. looking closely at semi-automatic, our operation. Our goals and customers. “Returning a 30% increase in Due for completion at the end of remote-control models. Certainly expectations are high: we believe we can install at a fraction terminal capacity, this automation 2017, it will make Fergusson a three with multi-lift capacity for up to 4 X believe that we now have the of the cost currently being spent General Manager Operations, would also make the job easier for berth capacity container terminal. 20ft or 2 X 40ft containers, they will tools to set a whole new global by others to achieve the benefits of Raoul Borley, confirms that POAL staff while reducing the complexity POAL GM Operations, Raoul Borley, have greater capacity and be more standard in port productivity”. automation ” said Raoul Borley. put enormous effort into reducing of some of the more mundane tasks confirms that three new cranes will productive than our current cranes.” 4 the risk of system outages like punching numbers into the be ordered to arrive to coincide with Supply Chain Interconnect

development is due for completion Spreading the Net early 2016. This site will be run by Australasian transport and logistics A year ago Ports of Auckland specialist Toll Group. unveiled a dynamic new supply chain strategy based on the All these links in POAL’s developing development of a network of supply chain network, mean intermodal freight hubs and the shipping lines calling Auckland provision of independent container with cargo for other NZ regions logistics and distribution services e.g. Bay of Plenty or Manawatu across NZ. can have cargo transferred directly to the POAL IPs for Since then POAL has continued onward distribution. The process to develop the network. Recently is repeated in reverse for export its new intermodal freight hub at cargo emanating from the regions. Mt Maunganui in Tauranga, Bay of Plenty, became the third link in POAL’s General Manager a network that includes Longburn Business Development and in the Manawatu and Wiri in South Chief Financial Officer, Wayne Auckland. And the network will Thompson, confirmed that POAL continue to expand with more links will continue to take a landlord role and hubs expected before the year in the development of its supply end. chain network, to provide the infrastructure. It will work with third parties who operate the freight On announcing the Mt Maunganui Aerial view of Ports of Auckland Wiri Intermodal Freight Hub hub in August, POAL Chief hubs. “The other important part of Executive, Tony Gibson, said the The state of the network is such has been completed. The our strategy is our investment in network of freight hubs (sometimes that Longburn, run for POAL and construction of a cross-dock facility Nexus Logistics Ltd, a high level called Inland Ports/IPs) “is part Joint Venture partner Port of Napier, will begin soon. 4PL provider. The Nexus role is of a concerted strategy to invest by Icepak which has its coolstore to provide national container and in a network of freight hubs there, is up and running full steam. The new star in the POAL supply intermodal logistics solutions to across the North Island, to both WIRI in South Auckland, POAL’s chain galaxy, the Bay of Plenty site cargo owners. Nexus is the exciting part of our supply chain offering improve options to NZ exporters, original IP, has been operating for at Mt Maunganui , is adjacent to a years. The major new development and our real point of difference”. reduce their costs, and maintain rail siding. Container handling and there, the Scales Group’s coldstore, Ports of Auckland’s position as other value-added logistics facilities is almost finished and additional NZ’s leading container port by and services are being installed volume and productivity”. infrastructure including hardstands 6 and the rail infrastructure and Investing in the Supply Chain Nexus to Drive Value for NZ Inc Interconnect

He also points to the big advantage POAL’s Very Independent and one appreciated by all customers whose logistics and Point of Difference distribution needs are processed by Nexus – a single point of contact for anything and everything to do with the service. “Despite being a multi-carrier environment in which several carriers may be contracted to provide a customer’s solution, all aspects of the service are processed by Nexus – accounts, service, safety, everything; this is a single desk environment”.

The Nexus customer list continues to grow. It already includes major national and international names, exporters and importers. Two companies who have used Nexus “Nexus is about taking the cost out of the supply chain, providing choice and options” – Stephen Owles, CEO Nexus from the beginning are the major A 50/50 Joint Venture between In his profile of Nexus, CEO to all stakeholders in the supply NZ importer, retail chain The POAL and established 4PL provider Stephen Owles says the Nexus chain – and so, not influenced by a Warehouse and the international Netlogix, Nexus is the core link in focus is on reducing NZ’s inherent dominant major shipper or indeed FMCG manufacturer Nestlé which is both an importer and exporter POAL’s Supply Chain strategy. An and excessive amount of empty by any one port. That port neutrality in the New Zealand market. independent operator founded container movements, by tapping really is our point of difference. By on collaborative principles of into that wasted capacity to that I mean, Nexus is not there to maximum customer choice, Nexus achieve a much more cost effective drive cargo solely through Ports of provides national container and balance in the volume of export Auckland – yes, it will if POAL is the intermodal logistics solutions and import containers. “And of best option for the customer but to the cargo owners to facilitate course Auckland has more empty the efficient flow of cargo across if the best solution lies at another containers than anyone else as the New Zealand via the smart use port, then that will be the Nexus major NZ import port” he explains. of technology and the utilisation recommendation. Nexus is about of an ‘optimised multi-carrier mix He highlights the independence of taking cost out of the supply chain, of sub-contracted road, rail and the Nexus national service: “This providing choice and options”. 8 coastal capacities and services’. is an open platform; it is available Investing in the Supply Chain Port Development to Drive Value for NZ Inc Interconnect

Port Connect Great New Tools Port Safe and Fit

OCR photographs all containers entering and leaving the Ports of Auckland rail grid from the yellow gantry

Two years ago in a ground the removal of duplication of Leading the way yet again in NZ the vessel” says Antony de Pont, Health and Safety is a very big the port in Health and Safety; we’ve breaking move, New Zealand’s two the multiple processes required with further hi-tech innovations, POAL Manager Gate Operations. deal at POAL where numerous introduced programmes like PortFit largest ports, Ports of Auckland for doing business with both POAL has introduced two tools programmes from Reward and which was created to reduce injury By the end of 2016, he expects OCR and , joined forces ports. “At PortConnect they and systems that speed up the Recognition to PortFit, illustrate by strengthening core muscles to be installed at the Road Gate to launch PortConnect, the first NZ have a single point of contact container handling process, the commitment the port has to and keeping fit and that’s been where he forecasts it will have a shipping portal. for NZ’s two largest ports and ensure accuracy and reduce very successful with uptake from highly positive effect on speeding up health and safety. In preparation we are hoping other NZ ports the risk of loss and damage. stevedores and lashers through the entry process, throughput and for the introduction of new national Since then the single window, will join in due course” says to management. We also have a truck turnaround time with OCR to regulations next year, POAL’s electronic cargo information Graeme Petch. Dan Cowie Reward and Recognition programme The first is OCR – Optical Character N4 matching information sparking Health and Safety Manager Steve and management system, has promises there is a lot more to for good safety behaviour and those Recognition - a camera-based a green light to enable the truck to Groenewegen, confirms the port is progressed from infancy to replace come. He says the continuing prizes are definitely appreciated system that photographs all proceed immediately to the grid. fully prepared, ready and waiting: both ports’ original systems – evolution of PortConnect includes and well worth winning!” containers entering the port through “ We have a huge focus on health Interact (POAL) and CargoConnect more electronic interfaces with rail, road and sea and relays Another advance is the introduction and safety; we’ve had a high level (POT). customers and a trial programme the information captured from of PDS – Position Detection input into the planning of the of a new system called Container containers, numbers and ISOs to the System – an information link new regulations and to the Act In this unique NZ port collaboration, Triangulation that is designed to port N4 operating system to ensure it between the straddles and the just passed. We have very robust the development focus has been reduce the multiple legs in the all matches with information already POAL Operating System N4. “It systems in place and so for us, the on functionality according to import/export movement of the in the system. enables the GPS in the straddles to changes are not going to be great. Dan Cowie and Graeme Petch, container. Watch this space. push back information to N4 about General Manager and Operations “We have it at the rail grid where it the exact location of the straddle Manager for the 50/50 POAL/POT- is eliminating the need for manual throughout the move thereby He points to an adjustment in owned Joint Venture company, box check; we have it on one crane ensuring operators follow the most focus in recent times at the port PortConnect. They report that with and others will be fitted out over efficient pathway to the allocated from hazard management to risk container clearance and export pre- the next few months and in that container position. It also reduces management with high investment advice up and running, customers position its advantage is the accurate the risk of containers being ‘lost’ into risk management and are benefiting from the obvious specification of the location of the by being placed in the wrong yard assessment training. “We’ve worked advantage of standardisation by box at each stage of its removal from position” Antony de Pont explains. hard to engage all staff throughout 10 Market Round Up Interconnect

Shipping and Related Capacity Better Appointments Boost for PIL Bunkering

Recently retired from his position company Alliance Group, in the POAL customer, the Singapore- Seafuels, POAL’s two year old 50/50 as POAL Board Chairman, Graeme same role. At its recent AGM, based container line Pacific Joint Venture with PB Bunkers, Hawkins has been replaced by the NZ Shippers’ Council re- International Lines (PIL) and has signed a new 10 year charter Deputy Chair Rodger Fisher as elected Mike Knowles (Shipping China’s shipbuilder Yangzijiang agreement with Z Energy for the Acting Chair. Also at POAL, former Manager, Zespri International) Shipbuilding, signed a contract in fuel bunker vessel Awanuia. As Manager of Multi-Cargo, Justin as Chairperson and announced September for the construction of the only powered marine fuel oil Blandina Diamond (Logistics vessel in NZ, the Auckland-based Maddock, has moved up to the eight 11,800 TEU container ships. Manager NZ Steel) as Deputy Awanuia collects marine fuels position of Manager Commercial These newbuilds will be the largest Chair. Day to day contact person from Marsden Point for bunkering Relations replacing Matt Kidman box ships in PIL’s fleet once the for the industry is newly appointed vessels both at Marsden Point and who has moved to Sydney. After Executive Officer Megan Campbell. planned deliveries start in 2018. in Auckland. Seafuels Chairman 16 years with and a close Wayne Mills said the long term involvement with logistics, supply partnership with Z Energy provides chain, transport and shipping, certainty of fuel supply for ships the dairy co-op’s Strategy GM, calling POAL. “This is essential Nigel Jones has joined meat for the continued success of the port and meeting Auckland’s growing freight demand.” Tripartite Alliance

Ports of Auckland has signed a chain and best practice initiatives. It the largest container port in the Memorandum of Understanding is a significant agreement for Ports US – LA/Long Beach (7.8M TEU with two of the top 10 international of Auckland which, as NZ’s biggest in 2013) and with Guangzhou, the ports – the Port of Los Angeles and most efficient container port, sixth largest Chinese container port and the Port of Guangzhou. POAL claims a ‘strong commitment to (15.31 TEU in 2013). The objective Head of Communications, Matt delivering innovative, efficient and is for the Alliance to work together sustainable operations that benefit to enhance the capabilities of Seafuels Chairman Wayne Mills [right], accepts Ball, says collaboration will include acknowledgement of the Awanuia’s last two investments, technologies and Auckland and the NZ economy’. each port in order to boost their years in operation without a single lost-time environmental policies with supply The new relationship aligns it with respective regional economies. injury 12 Market Round Up Interconnect

Saving the Whales

Efforts by Ports of Auckland, the Harbour Control now reports that shipping industry, University of the Lines in general have co- Auckland and the Department operated successfully with the of Conservation, to reduce ship Protocol. Prior to the initiative, speed through the Hauraki Gulf ship speeds through the Gulf approach to Auckland harbour, averaged 14.2 knots. Speeds is helping make life safer for the have since reduced gradually with local population of Bryde’s whales. the average now at 10.93 knots. Between 2006 and 2012, 15 Bryde’s At the same time, data shows whales were confirmed killed by the proportion of ships travelling commercial shipping in Auckland’s at low speeds has increased Hauraki Gulf with another killed ‘significantly’ – from 75% of ships by ship strike in 2014. With a travelling at over 12 knots in 2012, population of an estimated 46 to 80% now travelling at 12 knots full year residents and up to 159 or under. In the last two years seasonally resident Bryde’s whales only one ship strike whale death in the Hauraki, the Gulf is home to has been confirmed. one of the only few resident Bryde’s populations. They are listed as Captain John Robinson, President ‘critically endangered’ because of Shipping New Zealand said ship strike represents the greatest “The shipping lines serving New known threat and cause of death. Zealand all strive to operate in a socially and environmentally A POAL issued Protocol in 2013, responsible manner. The industry encourages shipping lines to cut has got right behind this Ports speeds through the Gulf to 10 of Auckland initiative and fully knots, to follow a recommended supports the effort to safeguard route while transiting the Gulf to the Hauraki Gulf Bryde’s whales.” and from Ports of Auckland, to keep watch for whales and take avoiding action when sited, to report sightings to POAL Harbour Control. Image: Hazel Meadows

14 www.poal.co.nz