Spring 2018 across borders
EXPORT AIR CARGO SECURITY SCREENING AND LODGEMENT SERVICES
EXPORT AIR CARGO PIECE-LEVEL EXAMINATION TIME FOR REFORM ON TERMINAL HANDLING AND SHIPPING COST RECOVERY THE WESTERN SYDNEY AEROTROPOLIS
Contents Across
2 Trade infrastructure for a modern australia 4 Time for reform on terminal handling and shipping cost borders recovery 6 Tasmanian Freight and Logistics Forum SPRING 2018 8 Can land keep pace with the sea? 12 The future of port community connectivity 14 International shipping lines must observe 30-day rules 16 Smooth Access Ports with 1-Stop 18 Newcastle Container Terminal: not if, but when 19 ACFS to connect export empties with Rail on Melbourne Port 20 Wagga Wagga City Council and Visy Logistics partner on proposed RiFL Hub 21 Seaway Group purchase 100% of Wakefeld Transport Group & Iron Horse Intermodal 22 Need for Feed Disaster Relief 23 Celebrating Australian Cotton 24 2018 Women in Logistics Forum 25 Women’s International Shipping and Trading Association 27 Patrick leads the way with female cadetship program 28 Be ready for 100% piece-level examination of export air cargo 29 Piece by Piece- Some legal issues in air freight screening 32 Menzies security screening - interfacing between Australian forwarders, exporters and international airlines New ministry with continued focus 34 Industry need to plan and implement security reforms now on security and trade reform 35 Time, cost, damage & congestion impacting exporters The Australian Peak Shippers Association (APSA) and 36 Interview - Geof Young, Air Menzies International Freight & Trade Alliance (FTA) look forward to ongoing 38 Western Sydney Aerotropolis engagement with the Hon Scott Morrison MP, the former 39 Unfair can mean unenforceable – time to review conditions for Treasurer and Minister for Border and Immigration, as the carriage of goods by air Australia’s 30th Prime Minister. 41 BNE focused on facilitating access, and ease of operations Congratulations also to South Australian Senator the Hon. 42 FTA expands its partnership with Collinson FX Simon Birmingham for his appointment to Minister for 43 Mizzen welcome Evergreen as the 10th line on the platform Trade, Tourism and Investment. In terms of border reforms, 44 Greetings to the FTA Community! importantly we have continuity with the Hon. Peter Dutton in his role as the Minister for Home Afairs and we welcome 46 Biosecurity update – FTA perspective new Assistant Minister for Home Afairs, Senator Linda 48 Current operations and future possibilities in biosecurity risk Reynolds CSC. management 51 “Due Diligence” for Timber product imports A special note of appreciation is extended to the Hon Steve Ciobo MP (former Trade Minister) and the Hon. Alex 52 EU-Australia FTA: in defence or defance of a failing system? Hawke MP and Hon. Angus Taylor MP (during their terms 54 BorderWise is going from strength to strength in Home Afairs Ministerial roles) for their policy support and 56 Costs associated with container examinations – Greater regular editorial contributions in Across Borders. We wish all consideration should be given to the ABF providing Ministers success in their new portfolios. compensation to importers 58 Australian Trusted Trader – going from good to great! As outlined in Minister Taylor’s foreword (which was provided to us before the new ministerial arrangements), the federal 61 Dispelling the myths - Australian Trusted Trader Update government is clearly focussed on ongoing trade reform 62 Australian Trusted Trader Symposium through increased benefts associated with the Australian Trusted Trader program and the expansion of air cargo security piece-level examination processes to all overseas Across Borders is published by destinations from 1 March 2019. Freight & Trade Alliance (FTA) While we prepare for these important reforms, more 68 Brooker Avenue immediate challenges are upon us with the arrival of the Beacon Hill NSW 2100 Brown Marmorated Stink Bug season (1 September 2018 T: 02 99751878 to 31 March 2019) and the implementation of the Chain of E: [email protected] Responsibility legislation (1 October 2018). www.FTAlliance.com.au We trust that the ongoing advocacy outcomes, training and regular updates provided by FTA and APSA is of assistance Design by in your operational planning. Supporting this approach, Siren Design Studio T: 0412 103 569 we again thank our expert writers for their insights and E: [email protected] commentaries in this Spring 2018 edition of Across Borders.
For advertising rates please contact Paul Zalai on 0408 280 123 By Paul Zalai, Co-founder and Director, Freight & Trade alliance (FTa) Front cover – sponsored by AGS World Transport Spring 2018 I Across Borders I 1 foreword
TRaDE iNFRaSTRuCTuRE FOR a MODERN auSTRalia auSTRalia’S prosperity is dependent on our nation being open, engaged and connected to the rest of the world.
business—and our partnership with industry travel by connecting our regional centres, drives economic benefts for all Australians, as cities and towns to the rest of the world. well as enhancing our security outcomes. Aviation is absolutely crucial to our immediate economic and social prosperity and to our Earlier this month, I welcomed the 200th long term success. But the thwarted terror accredited business to the Australian Trusted attack on an international airliner in July last Trader program. York Foods is a small, year demonstrated a level of sophistication family-run business manufacturing animal not seen before in Australia. It marked a origin cooking oils and exporting to Europe signifcant shift in the threat and risk to and Singapore—they now join the likes of Australian aviation, and the Government Bunnings, Qantas, Apple, Ikea and Louis responded immediately to disrupt and contain Vuitton. the threat by increasing ABF and Australian Accredited Trusted Traders are rewarded Federal Police presence at major airports, and with access to real fnancial and time-saving increasing security screening. benefts, as well as simplifed customs Keeping Australians safe is, and always will be, processes. Trusted Traders now represent $55 our number one priority. When it comes to our billion of Australia’s two-way trade value and nation’s security, we must outpace the threats the benefts to businesses during 2017-18 and never be complacent. We can never aford are collectively worth almost $350 million, a to roll up our sleeves and say ‘job done’. tenfold increase on the previous fnancial year. It is clear that aviation remains an enduring Recently I announced a suite of new benefts and attractive target for terrorists, and in May including duty deferral, trade identifcation this year the Government announced a $294 numbers and an even lighter touch at the million package designed to further strengthen border. As someone who advised global Australia’s domestic and international aviation businesses before stepping into politics, security. I understand that streamlining processes and reducing transaction costs is critical to Implementation of those measures has already begun, and we’re working closely with industry maintaining a competitive advantage on the to secure global supply chains and drive the By HON aNGuS TaYlOR MP, the global stage. That’s why I’ll be working with efective rollout of new air cargo security Minister for law Enforcement and the Department of Home Afairs to continue standards. From 1 March 2019, we will to add benefts to the Trusted Trader program Cybersecurity introduce 100 per cent piece-level examination and expand the membership base, with an of export air cargo—regardless of destination. ambitious goal to accredit 1,000 Trusted This is the current standard for exporting Traders by 2020. This is a program that cargo to the United States of America under industry says, works—and I look forward to As our economy transitions from a the Known Consignor Scheme. Extending this working with you to build on the success resources-led boom, the Australian standard to the rest of the world will efectively we’ve had to date. Government is bringing down address current and emerging threats to air the barriers faced by Australian By working in close partnership with Trusted cargo. You can read more about 100 per cent piece level examination of export air cargo in businesses looking to succeed on Traders, the Australian Border Force can develop a better understanding of how this edition of Across Borders. the world stage. That is why we’ve secure and compliant businesses undertake All of these measures are necessary to take delivered free trade agreements with international trade. This allows the ABF to advantage of the opportunities—and defend many of our major trading partners focus scarce intelligence and operational against emerging threats—presented by global including China, Japan and South resources to better target high-risk, unknown markets and the ever-increasing movement or illegitimate traders, improving Australia’s Korea. of goods and people. We will remain vigilant security. before, at and after the border to stay ahead But free trade arrangements are no panacea, Most are doing the right thing but there is of the game and ensure our long-term which is why the Government is partnering a minority who attempt to exploit our trade security. This cannot be achieved without with businesses of all sizes as we implement network—those attempting to bring illicit collaboration with national and international an ambitious trade modernisation agenda. tobacco, drugs and other prohibited items partners—crucially including industry—to Simplifying trade processes will substantially across our borders through air cargo. tackle our common security challenges. That reduce red tape and the time and cost it takes is a reality that Across Borders readers will no for Aussie importers and exporters to do Our aviation industry facilitates trade and doubt appreciate.
2 I Spring 2018 I Across Borders AGS WORLD TRANSPORT NEUTRAL SCREENING FACILITIES
We are pleased to advise that AGS World Transport as a Wholesale Screening and collection by AACA freight and facility provider have made the investment in Brisbane, • AGS to receive cargo Melbourne and Sydney and will be adding the required primary and • 100%-piece level Screening of cargo secondary screening equipment in order to service the freight forwarding using primary screening via X-ray & industry and our customers with the upcoming changes in Air Cargo secondary screening via ETD Screening regulations. (Explosive Trace Detection) These facilities will be fully stafed and (Explosive Trace Detection) • Cargo collected by agents nominated operational prior to the 1st March 2019 • Deliver to CTO as screened cargo AACA transport provider. deadline. (loose or unitised) The OFF-AIRPORT SCREENING will We will be ofering a variety of products Screening and Lodgement – Agents complement our existing Air Freight to suit your needs in these facilities. own AWB/IATA service oferings Products • AGS to receive cargo booked on • Export handling Screening and Lodgement – AGS Agents own AWB/IATA AWB/IATA • Breakbulk Handling both Loose and • 100%-piece level Screening of cargo Unitized • AGS to receive cargo booked on AGS using primary screening via X-ray & AWB/IATA secondary screening via ETD • Regular Consolidations both Import (Explosive Trace Detection) and Export • 100%-piece level screening of cargo using primary screening via X-ray & • Deliver to CTO as screened cargo • Collection of export cargo if and as secondary screening via ETD (loose or unitised) required
AGS World Transport is a Neutral NVOCC providing wholesale LCL, FCL, Air Freight & Handling facilities to the Freight Forwarding industry with 104 direct import sea consolidations per week and 52 export consolidation ofer you the most direct coverage possible. 100% australian Owned and Operated
Sydney Melbourne Brisbane Fremantle Adelaide Unit 6, 11-13 Friendship Road 36-38 Trade Park Drive 3/218 Fison Avenue West Unit 2, 43B Sustainable Avenue 4 Martin Street Port Botany, NSW, 2036 Tullamarine, VIC, 3043 Eagle Farm, QLD, 4009 Bibra Lake, WA, 6163 Gillman, SA, 5013 Tel: +61 2 9666 4555 Tel: + 61 3 8554 7500 Tel: + 61 7 3632 4300 Tel: + 61 8 9335 3778 Tel: + 61 8 8240 1500 eXeCUTIVe rePorT
Time for reform on terminal handling and shipping cost recovery
By Paul BlaKE, Chairman, australian Peak Shippers association
In the late 1980’s the Australian The introduction of the Terminal Handling be available to APSA as these were container stevedoring industry Charge (THC) was promoted as confdential matters under contracts providing shippers with a real view of the between the shipping lines and the lagged well behind the world cost of the inefciency of the Australia stevedores. standards on productivity and waterfront and to bufer the lines costs. against further cost impacts of the poor APSA Chairman at the time, Frank productivity at container terminals Beaufort, vigorously challenged the The liner shipping industry, The THC was initially designed to structure of the THC’s and fought an fed up with lack of Australian incorporate those costs associated with ultimately unsuccessful campaign to government action to improve the handling of containers to and from scrap them on the basis that the fees waterfront performance, the ship side plus some administration being charged could not be scrutinised undertook what would eventually and sundry terminal cost. or verifed and as such, the accepted become a global phenomenon The anecdotal split out of the terminal practice of “all -in” rates should and introduced a break out of service fee was 80/20 – that is 80% of continue. the full cost of the stevedoring service. the costs associated with the Regrettably, as it turns out, the At the time of the introduction of the landside container handling task. legislation as it was interpreted at THC, the Australian Peak Shippers that time upheld the lines’ position Association (APSA) was supportive of the move until it was declared that the on confdentiality of the stevedoring data supporting the costs being levied agreements and the THC became a by the liner shipping industry would not reality.
Hon. Jeremy Rockclif (Deputy Premier Tasmania, Minister for Education and Training, Minister for Infrastructure, Minister for Advanced Manufacturing and Defence Industries) and Paul Blake (Chairman APSA) at the 2018 Tasmanian Freight & Logistics Forum
4 I Spring 2018 I Across Borders The liner shipping industry was the current contractual arrangements with the Centre for Supply Chain and supported by the relevant Australian with shipping lines. Logistics. The project scoping has been completed and expressions of interest government department at that time and What has changed that stevedores are for funding is underway. A target start the THC stuck. compelled to seek recovery of costs date for the pilot project has been outside of the previously “locked in” The key defence of the lines was determined as 1 January 2019. that the contracts with the container arrangements with the lines? At time of writing this report, APSA had stevedores were confdential agreements 30 years on from its introduction the commenced a negotiation under Part which countenanced the complete THC has outlived its usefulness. X with the U.S. Pacifc Coast- Oceania service delivery of the stevedore and On a more positive note, congratulations Service Agreement (OVSA) Outward the THC being implemented was simply to Brett Charlton and the Tasmanian (Northbound) around Minimum Levels of a break out of part of the costs and as Logistics Committee for the very service with a focus on the requirement such APSA should trust that the charges successful Tasmanian Freight & Logistics for 30 days notifcation of blank sailings. were valid. Forum held in Launceston in conjunction It is of considerable interest that this Fast forward 30 years past WIRA in the with APSA and Freight & Trade Alliance negotiation is the frst of its type to early 1990’s, the massive disruption (FTA). have been undertaken by APSA around of the waterfront battles of the late A special thanks to the Australian Minimum Levels of Service and it heralds 1990’s and subsequent waterfront Maritime College for its generous a higher level of scrutiny of agreements reform and still the THC is a part of the support of the event along with the presented for sign of by APSA as the liner shipping landscape supposedly many sponsors and presenters. designated shipper body (outbound) under Part X of the Competition and delivering Australian shippers with The forum provided an insight into Consumer Act. transparency on stevedoring productivity Australian and Tasmanian government and cost. perspectives on infrastructure and It has become very clear in recent times shipping as well as a good overview that retention of Part X is critical for This at a time when stevedores are Australian shippers to ensure that the of domestic and international shipping recovering “infrastructure levies” from quickly changing face of the international trends from practitioners and shippers. shippers to cover of on investments shipping market does not diminish and increasing costs which we can only Work continues in developing a service and pricing for Australian presume are not being recovered under forecasting model in conjunction exporters.
NEW COURSE
Chain of Responsibility Essential training for everone in the transport chain
The Chain of Responsibility (CoR) requires that anyone who has control over the transport task must ensure their actions, inaction or demands do not contribute to breaches of Heavy Vehicle National Law. This course provides everyone in the transport chain with a clear understanding PAY & ENROL ONLINE of their responsibilities under CoR and the actions they may take to ensure breaches in heavy vehicle mass, dimension, loading, speed and driver fatigue $137.50 per enrolment laws do not occur. Price includes GST For more information go to: www.compliancenetfta.com.au Call: 02 9957 1878 or email: [email protected] FREIGHT & TRADE ALLIANCE
Freight & Trade Alliance, 68 Brooker Avenue, Beacon Hill, NSW 2100. ABN 59 160 523 384
Spring 2018 I Across Borders I 5 shIPPIng reforms
Tasmanian Freight and logistics Forum
By BRETT CHaRlTON, Chairman, Tasmanian logistics Committee
The Tasmanian Freight & (with infrastructure challenges to Tasrail received the National Freight Logistics Forum was held at accommodate them in Australia), Excellence the previous evening the Australian Maritime College- low sulphur fuel implementation at a and were proud to announce this University of Tasmania Australia cost, slow steaming to reduce costs, recognition. Discussion on safety for on 6 July 2018. Co-hosted attempts to increase freight costs – truck drivers as well as the technology was examined (automated vehicles are by the Tasmanian Logistics the international shipping lines are maintaining a ship building (and large not here yet, but when they do come, Committee, Freight and Trade ones) regime, but the freight volumes you defnitely want an experienced Alliance and the Australian Peak are not equaling the capacity. driver watching the robots closely). Shippers Association, the event was a great success thanks The forum received briefngs on the Minister Jeremy Rockclif provided an excellent overview of the State’s to the quality of the speakers, coastal services from Toll and Searoad as well as Tas Ports. Interesting perspective on the freight task and chairpersons, sponsors and Senator Zed Seselja opened the champions who gave time and discussion and information was received on trade trends and security forum with a federal overview. The day support to the event. (particularly air security – if you are ended with a showcase of Tasmanian an airfreight exporter, you would be produce as a way of providing our wise to be investigating the “known interstate guests with an overview of Last year there was a take away quote what is amazing in our State and what consignor” scheme right now as there from industry stalwart Tom Holyman we ship north of our island. (ANL) that read something like are signifcant changes to handling of “Tasmania has the perfect environment export freight from Australian airports All in all, an excellent event with good for shipping with three expanding from the end of the frst quarter 2019). information for all involved. coastal carriers, three international carriers calling direct, most other THANK YOU TO OUR EVENT SPONSORS shipping lines serviced via the coastal EVENT SPONSORS carriers and the freight equalization scheme extended to cover export cargoes – enjoy it now, as it won’t last – Tasmania cannot sustain so many services”. The prophecy was fulflled with Maersk announcing just before the forum that they were withdrawing their direct calling vessels from Bell Bay. Keeping with the prophecy theme, the next 12 months should Business Card Draw Prize – provided by Tasmanian Tourism and Barnbougle Golf Links be viewed with some caution. Forum attendees were advised to watch for further consolidation in the shipping world, larger ships being the trend
6 I Spring 2018 I Across Borders Travis- Brooks-Garrett - Secretariat APSA and Director FTA
Matthew Johnston – Executive General Manager – Maritime Services at Tasmanian Ports Corporation; Mark Paul & Caroline Zalai – Directors FTA Bergamasco – General Manager Toll Tasmania at Toll Michael Bailey – CEO, Tasmanian Chamber Group; Pat Guarino – Chief Operating Ofcer at SeaRoad of Commerce and Industry
Olga Harriton – Global Logistics Manager - Manildra Group; Rod Begley – Commercial Manager - Swire Shipping; Michelle Harwood – Executive Director, Tasmanian Transport Association; Gary McCarthy – Business Development Manager, Port of Melbourne; Alice Vujanovic – General Prashant Bhaskar– Acting Director, AMC National Centre for Manager, People & Culture – TasRail; Tom Holyman– General Manager, Ports & Shipping Global & Strategic Accounts ANL Container Line
Travis Brooks-Garrett – APSA / FTA; Hon. Zed Seselja – Assistant Minister for Tom Lees – Acting Director, Air Cargo Security International Bill Cole – Partner, International Science, Jobs & Innovation; Mike Brindley - – Department of Home Afairs; Robert Flemming – Managing Trade and Customs – BDO Australia Regional Development Australia - Tasmania Director, BSM Global; Brad Hilder – Chief Operating Ofcer, SRT Logistics; Brandon Vermaak – Associate Director Global Trade, Spring 2018 Across Borders 7 Commonwealth Bank of Australia I I shIPPIng reforms
Can land keep pace with the sea?
The shipping industry’s default The July announcement by ANL the broader shipping industry fxated on position is that trade growth Container Line and its A3 consortium the purported efciencies, economies partners in the Asia-Australia trade that and scale and, yes, glamour of Very demands ever-larger vessels: ships of 8,000+ TEU are coming into and Ultra Large Container Ships without the bigger the ship the greater regular service here was greeted with a considering the full ramifcations? the economies of scale, from degree of relief and celebration in some (Also up for debate is the question of circles. which we all beneft. But, asks whether carriers’ desire to cascade Dale Crisp*, what price must After all, we all know bigger ships mean larger ships into Australian trades is infrastructure and the supply lower slot costs which mean smaller running ahead of market demand, such chain pay? freight rates – don’t we? We all know that lines risk undermining their own that there’s a shortage of capacity in proftability – and thus contributing, the China-Australia trade and this will unnecessarily, to unstable market mean no more cargo rollovers and conditions and uncertainty for the short-shipping – don’t we? And we all importers and exporters of a dependent know that Australia has been lagging island continent.) global container shipping trends, unable At the outset it should be noted that the to accommodate mega-ships and new A3C service tonnage is very modest thus rendering us a backwater in the by contemporary standards, even if perceptions of outsiders. the biggest of the incoming vessels is The reality, of course, is somewhat around 30 metres longer, eight metres diferent. wider and of much greater tonnage than the largest now regularly using local The truth or otherwise of the frst two ports. contentions will be demonstrated over time. But the third is open for debate: is The average size of containerships grew
8 I Spring 2018 I Across Borders by 25% between 2014 and 2018 and comes calling, ports and terminals are urban congestion. In Europe bunched by the second quarter of this year 31% discovering other downsides. arrivals of ULCVs on multiple carrier of the total global feet were VLCVs and alliance services through the entire For example, while those impressive ULCVs. Orders for this type of vessel Antwerp-based inland barge feeder publicity shots may show up to 12 have risen by 183% in 2017/18. CSOCO network into river trafc chaos, while Shipping Lines alone has 18 such ship-to-shore gantries lined up and on the West Coast of North America units due for delivery by the end of this apparently working one of these ULCVs, truckers went on strike over being year. And the envelope continues to be practically the terminals simply can’t forced to work unreasonable hours in an pushed: ships of 24,000 TEU are under cope with that kind of crane intensity, attempt to clear clogged wharves and construction – that is, triple the capacity regardless of the sophistication of the yards. of the A3C ships debuting in Australia. landside equipment and technology. Further is the efect that employment of The sheer size of VLCVs and ULCVs Another observation is that the ever- ULCVs is having on transit times, with confnes them – for now at least – to one increasing capacity of the ULCVs has shippers noting that whatever is gained or possibly two trade lanes, from Asia to been achieved by wider ships with on the bluewater leg is lost if the ships Northern Europe and the Mediterranean. higher container stacks, while generally need 4-5 days alongside to conduct big But as report after report from overseas remaining within an overall length of exchanges and the containers then get makes plain, big ships solve some 400 metres. This expanded operating bogged down in terminals or along the carrier problems but the fow-on efects envelope demands much bigger (and delivery chain. at port terminals and the landside heavier) STS cranes – but also means This all brought to mind a conversation logistics chain have not been thoroughly much longer vertical and horizontal with the Australian manager of a top thought through. travel times for gantry trolleys. liner company at least 15 years ago, A recent analysis found that bluewater Then there is the matter of clearing when he confded that his headquarters efciencies are producing the opposite terminals of greater import volumes in were keen to introduce larger ships efect at the sea/land interface. Apart timely fashion, and accommodating to their Asia-Australia trade but had from the challenges of dealing with the export volumes of fulls and empties, decided against it, because they weren’t sheer volumes of container exchanges and/or efcient transfer of boxes to/from confdent the stevedores/terminals involved when a 20,000+ TEU ship road and rail services battling increased could cope with the cargo exchanges
Spring 2018 I Across Borders I 9 shIPPIng reforms
in the allocated windows, and thus roads, rail links, empty container parks, Victorian Reliance II, the pair that will the line’s proudly-protected schedule pack/unpack facilities have to undertake replace their namesakes in the Burnie- dependability would whither. investment and re-investment to cope Melbourne trade in the frst quarter of with volumes involved. 2019. That was when the Australian waterfront was humming along after the 1998 None of this comes cheap. Depending on the mix of containers, reforms were well bedded down, and MAFIs, trailers and cars carried on the There are immediate consequences he was talking about ‘only’ 4,000 TEU new ships will carry up to 700 TEU in our own backyard, exemplifed by ships … compared to 480, with 3,500 lanemetres the impact of the new Bass Strait Again, there’s an obvious world of ro-ro vessels now and soon to ply the available versus 2,524. And they have diference between 24,000 TEU mega- trade between Tasmania and mainland been designed for the addition when ships and A3C’s 8,000 TEU vessels – Australia. necessary of a fourth, upper, deck that but relativities are surely relevant. would take those fgures to 850 TEU and At the Tasmanian Freight & Logistics 4,750 lanemetres. So is this as serious an issue for Forum, held in Launceston in early Australian ports and terminals? July, presentations from Toll Shipping Needless to add, these Toll newbuildings and SeaRoad Shipping both made are substantially larger vessels and this The steady trend to fewer but larger considerable reference to the challenges necessitates expensive improvements containerships in local trades has been larger tonnage bring for landside on the ‘sea’ side, with dredging required tracked by the Bureau of Infrastructure, infrastructure – and not just shipping in Burnie and Melbourne, reconstruction Transport and Regional Economics for terminals but the connections with and of the berth face in the latter and many years. Four-berth terminals have adequacy of roads, bridges, freight installation of a new mooring dolphin at become three-berth, and stevedores corridors and the like. the former, and extension of the ‘landing have responded by increasing crane pads’ at both ports to accommodate intensity to handle greater volumes in SeaRoad’s Searoad Mersey II, what are reported to be the world’s required turnarounds. The sheer physics introduced at the end of 2016, has widest single-piece stern ramps. of larger boxboats now disqualifes them more than twice the capacity of its from using Melbourne’s Yarra River and predecessor: 1,960 lanemetres versus And then there’s the reconfguration of upstream Swanson Dock container 887, for example, and 455 TEU versus the shoreside facilities in both terminals terminals, to the incumbent stevedores’ 185. SeaRoad is on the verge of placing to ensure not only that the physical considerable chagrin. an order for a sistership, for delivery volumes can be accommodated but in 2020/21, and while the ship it will that the ships can still be turned around But there is a limit to this absorption replace, Searoad Tamar, is rather larger within their normal daily window. In efect of extra throughput over the berth than the original Searoad Mersey the both terminals will have to be cleared of face, in the terminal hinterland and by second newbuilding will nevertheless be all existing structures such as ofces and all the landside connections. Greater a substantial step up in capacity. sheds to make room for cargo fow. automation of terminals and interfaces is one answer but at some time infection At the forum Toll Tasmania’s general Toll Group managing director Michael points will be reached; meanwhile, manager Mark Bergamasco revealed Byrne subsequently put the cost of the supporting supply chain links such as more about Tasmanian Achiever II and two-ship replacement program at $311
10 I Spring 2018 I Across Borders million - $170 million for the vessels and fnd new and better ways to achieve costs, he said, and Bass Strait another S141 million for the terminal and tight turnarounds and still maintain operators – who own the ships and port infrastructure works. schedules. the dedicated terminals, unlike most international carriers – have to fnd As both Mr Bergamasco and SeaRoad’s In Mr Guarino’s TF&LF presentation chief operating ofcer Pat Guarino he described terminals as the “pinch their own solutions. This can only be reminded attendees, it doesn’t matter point” for coastal operators investing accomplished, as he stressed, with the how fast you sail your ships across “signifcant dollars” in new tonnage co-operation and assistance of ports, Bass Strait if, at either or both ends, you designed to accommodate 20 years local municipal authorities, state and can’t discharge and load quickly and of Bass Strait trade growth (growth federal governments, and road and rail efciently – a task that becomes doubly that has been showing reliable annual service providers. challenging if you’re doubling the size of increases of around 2% but, according For its part the state government- your ships. to Port of Melbourne fgures, is showing owned TasPorts, in conjunction with the a spike at some 7% for 2017-18. If it The Tasmanian Government-owned TT release of its new 10-year Port Master continues at that rate, the additional Line has on order in Germany two new Plan in mid-August, announced it was seaborne capacity will be utilised much ro-paxes, due in 2020-21, which too investing $50 million-$60 million for sooner than expected). will be considerably bigger than current redevelopment work in Devonport for TT sisters Spirit of Tasmania I and II. These “Shipping terminals will face immediate Line, SeaRoad Shipping and associated custom-designed ferries will have the operational constraints with their transport and logistics providers. $80 capacity for 40% more passengers, facilities required to manage increased million has been allocated to Burnie, up to 70% more cars/campervans/ throughput,” Mr Guarino said. “Demand part of which is for dredging and caravans and 85 more freight trailers – on freight forwarders and logistic infrastructure works for Toll’s new ships. and TT Line’s existing terminals are far providers to clear shipping terminals more physically constrained than either will be a priority … Clearance delays So it’s inarguable that bigger ships mean SeaRoad’s or Toll’s. will impact shipping efciencies and bigger costs. The questions are, where customer service.” do those costs fall, and who should be During peak periods – and these are bearing them? growing longer by the year, thanks The consequences of not dealing with to Tasmania’ success as a tourist likely congestion would be increased *Shipping writer Dale Crisp also provides destination – TT Line operates twice- truck queuing and higher storage, FTA/APSA with communication and daily sailings, each way, and must thus detention, demurrage and handling content advice.