Shipping Australia Limited Annual Review 2019 Helping economies grow and customers prosper.

We enable sma!er trade to create a be"er future for all. CONTENTS

2 COMPANY OVERVIEW South Australia 62 Flinders Ports 4 FROM THE MINISTER Victoria 6 SAL MEMBERS 64 Port of Melbourne 7 BOARD OF DIRECTORS 66 Victoria Ports Corporation (Melbourne) 8 CHAIRMAN’S REPORT 67 Victorian Regional Channels Authority 10 CEO’S REPORT Western Australia 68 Mid West Ports Authority 12 SAL STRUCTURE 70 Pilbara Ports Authority 13 POLICY COUNCIL 72 Fremantle Ports 14 LINER SERVICES INTERNATIONAL ORGANISATIONS 73 CLIA Australasia and Asia STATE COMMITTEE REPORTS 74 International Chamber of Shipping 16 New South Wales 75 AUSMEPA 19 Queensland 76 World Shipping Council 20 South Australia/Western Australia 78 FONASBA 21 Victoria 80 International Federation of Freight Forwarder 22 YOUNG SHIPPING AUSTRALIA Associations 81 Customs Brokers and Forwarders Council of SAL VOTING MEMBER UPDATES Australia Limited 26 CMA/CGM - ANL Container Line 28 Inchape Shipping Services MARITIME LAW AND INSURANCE 30 Mediterranean Shipping Company (Aust) 82 CMI Colloquium - Mexico City 32 Wallenius Wilhelmsen Ocean Michelle Taylor COMMONWEALTH AGENCIES 85 Blowing the whistle on cartel cases - plan before you 34 Minister for Agriculture sound the alarm 36 Department of Agriculture and Water Resources Nathan Cecil and Rebecca Niumeitolu 37 Department of Home Afairs - Aviation and Maritime Security 86 IMO 2020: emerging challenges Naraya Lamart and Nic Van Der Reyden MARITIME SAFETY 38 Australian Maritime Safety Authority 88 Notices of readiness, cancellations amd 40 Australian Transport Safety Bureau charterparty chains Peter McQueen STATE TRANSPORT AND LOGISTICS 42 Queensland 90 Force Majeure in shipping contracts Ryan Hunter and Joe Hurley PORTS 44 Ports Australia 91 When should a freight forwarder issue a house of bill lading? New South Wales Harry Kong 46 Port Authority of New South Wales 48 NSW Ports EDUCATION AND TRAINING 50 Port of Newcastle 92 Australian Maritime College Queensland NAVIGATION 52 Gladstone Ports Corporation 94 OMC International 56 Ports North 58 North Queensland Bulk Ports PILOTAGE 60 Port of Townsville 96 Port Phillip Sea Pilots 98 Brisbane Marine Pilots

THE OFFICIAL JOURNAL OF TOWAGE Shipping Australia Ltd 101 Engage Marine Level 6, 80 William Street, Woolloomooloo NSW 2011 PO Box Q388 Sydney NSW 1230 P: 02 9167 5838 STEVEDORING AND LOGISTICS W: www.shippingaustralia.com.au 102 LINX Cargo Care Group 104 Patrick Terminals

Publications commitee: Ross McAlpine, Frank Needs 106 Victoria International Container Terminal Executive editor: Rod Nairn Executive assistant: Sharyn Flood SUPPORT AND INNOVATION Graphic designer: Sarah Abrahams E: [email protected] 108 The Merchant Navy War Memorial Fund Ltd 110 Serco Asia Pacifc Advertising Co-ordinator: For advertising contact Steve Moxey CONTAINER MANAGEMENT P: 0400 473 200 E: [email protected] PO BOX 43, Woonona NSW 2517 112 1-Stop Connections

Shipping Australia Magazine is published for Shipping Australia Ltd by Ontime Publications Ontime Pubications. Shipping Australia Limited Annual Review 2019 1 Our Vision The frst 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 26 member lines and shipping agents and with 43 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-of 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 efcient and efective 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.

We know shipping!

Disclaimer: Readers are advised that Shipping Australia Limited and the Publisher cannot be held responsible for the accuracy of statements made in advertising and editorial, nor the quality of the goods or services advertised. Opinions expressed throughout the publication are the contributors own and do not necessarily reflect the views or policy of Shipping Australia Limited or the Publisher. While every reasonable effort has been taken to ensure the accuracy of the information contained in this publication, the Publisher takes no responsibility for those relying on the information. The Authors, Publisher and Shipping Australia Limited disclaim all responsibility for any loss or damage suffered by readers or third parties in connection with the information contained in this publication. Nothing in this publication should be construed as personal or professional advice and should be read as general information only.

Warranty and Indemnity: ADVERTISERS and/or advertising agencies upon and by lodging material with the Publisher, Ontime Publications for publication or authorising or approving of the publication of any material indemnify Shipping Australia, the Publisher, its servants and agents, against all liability claims or proceedings whatsoever arising from the publication and without limiting the generality of the foregoing to indemnify each of them in relation to defamation, slander of title, breach of copyright, infringement of trademarks or names of publication titles, unfair competition or trade practices, royalties or violation of rights or privacy regulations and that its publication will not give rise to any rights against or liabilities in the Publisher, its servants or agents and in particular, that nothing therein is capable of being misleading or deceptive or otherwise in breach of Part V of the Competition and Consumer Act, 2010 (Cth).

2 Shipping Australia Limited Annual Review 2019 Hamburg Süd – what we say, we do.

We take care of your cargo – no matter what, where, how much or how often you ship with us. We’re bringing the personal touch to container shipping, with frst-class customer service and the unmatched cargo expertise we’ve built our reputation on. Any questions? Just ask our sales experts, who are near you at more than 250 locations in over 100 countries.

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www.hamburgsud-line.com Shipping Australia Limited Annual Review 2019 3 FROM THE MINISTER

Focusing on our future opportunities

By the Hon MICHAEL MCCORMACK MP, Deputy Prime Minister, Minister for Infrastructure, Transport and Development

The shipping industry plays a critical role in its preparation to implement the IMO Melbourne Port Rail Shuttle Network in Australia’s economic wellbeing, and 2020 fuel sulphur limit rule. This provides initiative. The Australian Government has associations such as Shipping Australia substantial health benefts, particularly also committed $20 million for further Ltd are important in ensuring this vital for coastal communities. From 1 January planning of a dedicated freight link to the sector remains strong. 2020, ships operating anywhere in port of Brisbane, with the Queensland the world will be required to use fuel Government providing an in-kind Almost 80 per cent (by value) of containing a maximum of 0.5 per cent matching contribution. The Australian Australia’s imports and exports are sulphur, down from 3.5 per cent. Government is also working with the carried by sea. In fact, 10 per cent of Queensland Government on a joint $1.5 the world’s sea trade passes through The Government continues to engage million Port of Brisbane Strategic Rail Australian ports, making us the ffth with the IMO on other fronts, to promote Access Study. These projects will all largest users of shipping services in the efciency in the shipping sector and to improve port connections to businesses, world. represent Australian interests. Australia freight hubs and inland rail. is part of a group that is reviewing This year, with State and Territory the Annex to the Convention on the The Liberal and Nationals Government is Transport Ministers, I signed up to the Facilitation of International Maritime committed to getting regulatory settings National Freight and Supply Chain Trafc (FAL Convention), with a focus on right. This year, we repealed the ANL Act Strategy and National Action Plan. This updating the convention’s arrangements 1956, to reduce legislative impediments Plan shows, for the frst time, the actions for electronic information exchange. The on shipping businesses. The ACCC is each government is taking to respond Annex is expected to be amended in investigating whether a class exemption to Australia’s freight challenges. It sets 2021, with the Maritime Single Window from the Competition and Consumer an agenda for co-ordinated and well- to become a Standard. This will support Act 2010 (the CCA) could provide a planned government and industry action increased trade through faster and more better way to regulate liner shipping across all modes, over the next 20 years efcient information exchange. arrangements than the current provisions and beyond. of Part X of the CCA. My department It is also signifcant that Australia has Looking to the future, the Australian is working with the ACCC as it consults been re-elected to Category B of the IMO Maritime Safety Authority (AMSA), on the possible class exemption. Until Council. Category B is made up of just with the Trusted Autonomous Systems a Government decision is made, the 10 IMO Member States with the largest Defence Cooperative Research Centre, Department will maintain Part X. interest in global seaborne trade. hosted the Australian Autonomous Vessel Finally, as Australia’s domestic freight Forum in Canberra – the frst event of its As part of this Council, Australia will task grows, a strong, efcient and kind in Australia. continue its work with the IMO to build a reliable coastal trading sector will be more modern, innovative and responsive Delegates from the technology, design, ever more important. Our land-based organisation, able to address pressing science, law and defence sectors minerals processing, agriculture and maritime priorities and the rapid pace of met with government regulators to manufacturing industries rely on efcient technological change. consider the potential opportunities and coastal shipping services to operate. impacts for this technology in Australia. This is recognition of Australia’s status Coastal trading consultation has Internationally, the Government continues as a signifcant maritime state and our received broad support from across the to engage with the International continued contribution to the work of the maritime industry. I thank everyone who Maritime Organization (IMO) in the global IMO. has already engaged in this process, discussion about remotely operated and Recognising the critical role of ports including Shipping Australia Ltd, and autonomous ships and ship systems. in our supply chains, the Federal encourage all stakeholders to remain We have worked with Australia’s maritime Government is working with the involved as we shape Australia’s maritime industry to make sure it is well advanced Victorian Government on a $58 million future.

4 Shipping Australia Limited Annual Review 2019 Delivering Contact us for all your containerised, over-dimensional cargo and bulk shipping requirements to legendaryand service from the South Pacifc and Central Pacifc. We provide shipping links between the region and Australia, New Zealand and the rest of the world through our connecting carrier agreements. Please see our web site for sailing schedules & contacts ... Contact us for all your containerised, over-dimensional cargo and bulk shippingwww.neptunepacifcline.com requirements to and from the South Pacifc and Central Pacifc. We provide shipping links between the region and Australia, New Zealand and the rest of the world through our connecting carrier agreements. Please see our website for sailing schedules & contacts ... www.neptunepacifc.com

Pacifc Forum Line offers an extensive range of door to door transport solutions including LCL consolidation, break-bulk and specialized airfreight, designed specifcally to meet the needs of the Pacifc Market. Specialists in Our services encompass all key destinations throughout the Pacifc region offering regular connections between New Zealand, Samoa, Fiji, Tonga, Cook Islands, American Samoa, Australia, Papua New Guinea, Solomon Islands,South Vanuatu, French Pacifc Polynesia, New Caledonia,shipping Kiribati, Tuvalu, Nauru, Tokelau, Niue, and the world. www.pacifcforumline.com

Pacifc Forum Line offers an extensive range of door to door transport solutions including LCL consolidation, break-bulk and specialized airfreight, designed Polynesian Shipping, an independentspecifcally shippingto meet the company needs of the providing Pacifc Market. regular and reliable shipping services to Pacifc Island importers and exporters! Our services encompass all key destinations throughout the Pacifc region offering the team at Polynesian Shippingregular Line connections is focused between on providing New Zealand, customers Samoa, with Fiji, Tonga,effcient, Cook responsive Islands, Americanand Samoa, proffessional Australia, service.Papua New Guinea, Solomon Islands, Vanuatu, French Polynesia, New Caledonia, Kiribati, Tuvalu, Nauru, Tokelau, Niue, and the world. ww.polynesianshipping.co.nzwww.pacifcforumline.com

PACIFIC SPECIFIC WITH GLOBALShipping AustraliaCONNECTIONS Limited Annual Review 2019 5 SAL MEMBERS

Voting members Darwin Port Corporation Pty Ltd A.P. Moller-Maersk A/S DP World Australia Pty Ltd Asiaworld Shipping Services Pty Ltd Flinders Ports Holdings Pty Ltd BBC Chartering Australia Pty Ltd Fremantle Ports CMA CGM Group Agencies Henning Harders Shipping Australia (Australia & New Zealand) Holding Redlich Evergreen Marine Australia Pty Ltd HFW Gulf Agency Company (Australia) Pty Ltd Hutchison Ports Australia Pty Ltd Hamburg Süd Australia Pty Ltd HWL Ebsworth Pty Ltd Hapag-Lloyd (Australia) Pty Ltd LINX Cargo Care Group Pty Ltd Inchcape Australia Limited Maritime Safety Queensland K Line (Australia) Pty Ltd Melbourne International RoRo & Auto Terminal Pty LBH Australia Pty Ltd Ltd Mediterranean Shipping Co (Aust) Pty Limited Norton Rose Fullbright Australia Group Pty Ltd Mitsui OSK Lines (Aust) Pty Ltd NSW Ports Pty Ltd Monson Agencies Australia Pty Ltd OMC International Pty Ltd Neptune Pacifc Agency Australia Pty Ltd Patrick Terminals NYK Line (Australia) Pty Ltd Peter McQueen Pty Limited OOCL (Australia) Pty Ltd Port Authority of New South Wales Pacifc Asia Express Pty Ltd (PAE) Port Kembla Gateway Pty Ltd Quay Shipping Australia Pty Ltd Port Lincoln Tugs Pty Ltd Seaway Agencies Pty Ltd Port of Brisbane Pty Ltd Ship Agency Services Pty Ltd Port of Newcastle Smit Lamnalco Towage (Australia) Pty Ltd Port of Townsville Ltd Svitzer Australia Pty Limited Port Phillip Sea Pilots Pty Ltd The China Navigation Company Pte. Ltd. (Australian Branch) QUBE Ports Pty Ltd Wallenius Wilhelmsen Logistics A/S Royal Wolf Trading Australia Pty Ltd Wilhelmsen Ships Service A/S Serco Asia Pacifc The Merchant Navy War Memorial Fund Ltd Corporate associate members Thomas Miller (Australasia) Pty Ltd 1-Stop Connections Pty Ltd Thompson Clarke Shipping Pty Ltd AGS World Transport Pty Ltd Victoria International Container Terminal Ltd Australian Amalgamated Terminals Pty Ltd Victoria Ports Corporation (Melbourne) Australian Maritime College Victorian Regional Channels Authority Australian Pilotage Group Westug Pty Ltd Australian Reef Pilots Pty Ltd Brisbane Marine Pilots Pty Ltd Individual members Colin Biggers & Paisley Pty Ltd Mr Frank Needs Containerchain Pty Ltd Mr Ross McAlpine

6 Shipping Australia Limited Annual Review 2019 *As at 1 November 2019 BOARD OF DIRECTORS

Scott Henderson, Ken Fitzpatrick, chairman vice chairman Appointed 24 February 2015 Appointed 4 December 2006 (chairman 2 December 2016) (chairman December 2011 to Managing director, Gulf December 2016) Agency Company (Australia) Director, Asiaworld Shipping Pty Ltd since 2014. Scott has Services Pty Ltd. Ken has over 26 years of agency experience 46 years shipping experience in Australia, prior to that he in a variety of industry served as deck ofcer in the related activities including British merchant navy for the Australian and overseas seven years. market.

Tsukushi Sato Kevin Clarke Appointed 1 August 2019 Appointed 12 November 2003 Tsukushi Sato is the Kevin Clarke has worked in managing director of NYK the shipping industry for over Australia Pty Ltd, based in 51 years, the past 30 of which Melbourne. Mr Sato joined have been as managing NYK Line in 1986 and has director, Mediterranean extensive experience with Shipping Company (Aust) Pty liner trades, tanker and RO/ Limited. RO vessel operations.

Eddy DeClercq Geof Greenwood Appointed 8 August 2008 Appointed 3 May 2004 Managing director OOCL Managing director, Hamburg (Australia) Pty Ltd. Eddy has Süd Australia Pty Ltd. with 37 years of shipping industry 35 years shipping industry experience in various key experience, Geof has commercial and management held key commercial and positions in Belgium, management positions in Denmark, The Netherlands Canada, USA and Australia. and Sydney.

Shane Walden Adrian Peterson Appointed 1 August 2019 Appointed 21 December 2015 Shane Walden is the recently Manager East Coast appointed Managing Oceania/PNG, Wilhelmsen Director of CMA CGM Group Ships Service. Adrian has Agencies Australia/NZ. He 31 years experience with has extensive experience in companies such as Union liner shipping gained through Bulkships, Contship, Pacifc shipping line appointments in Asia Express. He also has Australia, France, and Hong extensive experience working Kong. with liner traders, bulk, tanker and Ro/Ro vessels. Adrian is a member of QTLC.

*As at 1 November 2019 Shipping Australia Limited Annual Review 2019 7 CHAIRMAN’S REPORT AmidstA continual change – stillevolution getting - plentythe jobgoing done on here!

By SCOTT HENDERSON

It’s Thisbeen year a better has beenyear fora signifcant shipping. one strategy;an extremely frst port well of attended entry regulations… Shipping SafeMelbourne Ports business harbourmaster breakfast. and TherePort will Containerfor Shipping rates haveAustralia improved, Limited, and with a TheIndustry list is trulyGolf endless.Day and anotherI will leave it bePhillip more Sea in storePilots in for 2018. their combined bumperchanges agricultural to the Board, year saw staf record and high forsuccessful our chief executiveShipping Industryto provide Charity more eforts to enable big ships to traverse demandofce forlocation, exports whilst last summer. the business The dry detailsBall, whichof these raised matters. a combined total of Inthe Queensland, Yarra. It was our certainly enduring encouraging State bulkof index infuencing is now shipping fve times policies what it was $10,000 for the Brisbane Mission to secretary,to see 49 metreBill Guest, beam has Bosporusmax continued to Around the States, SAL has continued in Februaryand protecting 2016. members’Product tanker interests rates Seafarers and Stella Maris. becontainer dynamic ships in his taken management up the Yarra of State to be active. In Victoria, last December, havecontinued improved without on the interruption.back of increasing CommitteeRiver to Swanson meetings Dock, and afterexcels this in sizethe SALIn New held Southa lunch Wales, to honour Bill Rizzi Phil Kelly,(MSC) global demand for diesel, petrol and coordinationvessel being ofpreviously special events. considered The SAL At the Board level, Gerard Morrison ourcontinues long-term as State SAL Newsecretary, South who Wales had particularly jet fuel. There are signs that Queenslandimpossible. ShippingSocially, Industrythe mid-year Golf Day is stepped down following his departure stoodState down Committee due to illchairman health. Onlyand has a the recent upturn in the heavy lift/project legendary,information and and the networking SAL Shipping breakfast Industry from Maersk in January. To fll this monthbeen laterexpertly we weresupported all saddened by New by the cargo sector may be sustained and of Ball, held in October each year, is well vacancy, we welcomed Tsukushi Sato news of his passing. A ftting tribute to and the State Christmas Lunch were course, the cruise industry is continuing South Wales State secretary, Melwyn supported by sponsors and guests. This from NYK, who’s experience spans Phil was published in the SAL Autumn/ both well supported and greatly to boom. We must all be smiling. Noronha. The State committee year the event raised $15,000 for the container, PCC and bulk sectors. Winter Magazine and I will not attempt to enjoyed by the maritime community. meetings have dealt with some Mission to Seafarers thanks to generous SALSato has sanincreased provides its directshipping bulk line sector summarise it here. Please take the time important and sensitive matters, such platinumIn South sponsorshipAustralia, Paul from Paparella Port of representationrepresentation during to the the Board past year. for the I frst to read it (all magazines are available on as the innovative double-charging of Brisbane,(Asiaworld) Gold continues sponsors: to wear Svitzer, the Patrick wastime. pleased In August, to welcome Simon Quay Aynsley Shipping was the SAL website), if you have not already navigation services charges for some andmantle Chalmers as State and chairman, other supporting and in Australiasucceeded as a new at CMA-CGM full member by at Shane the end done so. ships in Port Jackson, Port Botany sponsors.Western Australia, Christy Kraker (Ship of 2016.Walden, The and mergers Shane and was acquisitions also appointed Atand the Portbeginning Kembla, of 2017which we have welcomed driven Agency), is in her second year as betweento replace global him shipping on the lines,SAL Board. which At Charlesa huge Masters workload (formerly on the Columbussecretariat, Line MyState very chair, sincere and thankswith three to our committee volunteer the end of the year we also farewelled have been widely discussed in the andwho Marfret), have sought to take to on get the the Victorian true Statemeetings chairmen, under Geofher belt Dalgliesh is looking (K-Line) maritimeAdrian press, Petersen, have as added a result the offormer being Statefacts secretary into the openrole. Charlesthrough hasarchive been Queensland,towards what Bill improvements Rizzi (MSC) New can Southbe operationsmade redundant for China throughShipping a andrestructure UASC verysearches active sinceand freedom and (despite of information a short Wales,made to Sunil improve Dhowan the (WWL)impact Victoria, of the Paul to SALat WSS. by inclusion Suitable within candidates COSCO for and this absencerequests. for Onheart the surgery) social side,has arranged a Paparellacommittee (Asiaworld) and its value South to members.Australia, and Hapag-Lloydcasual vacancy respectively. will be consideredUnfortunately, in successfulinformation golf and day, networking a luncheon lunches featuring at Robert Boyce (MSC) Western Australia, thesethe mergers new year. and acquisitions can also FederalNew South Minister Wales Darren Parliament Chester, House a very forAfter their more leadership than a decade on shipping in Sussex matters negatively impact on SAL revenue. APL Street, at the end of June, the SAL At the staf level, former policy ofcer, popularand Newcastle, blockchain continue business to breakfast, draw the in their States. I would also like to thank did not renew their membership this headquarters moved to a smaller but Matthew Whittle, resigned in April, to andcrowds, has upscaled and the andAnnual relocated New South the State various committee chairmen of our year following their acquisition by CMA- more modern ofce at 80 William relocate to Brisbane for family reasons. committeeWales State Christmas Committee lunch Christmas to the iconic national steering groups, Ross McAlpine CGM. Other major line changes such as The remaining staf have covered the WestLunch Brighton was sold Club! out You midway can expect through to (BorderStreet, Woolloomooloo,Agencies, Technical the andsame Public Maserk’s acquisition of Hamburg-Sud additional workload while his position hearNovember. of a lot more Our interestingcompany secretary, events in Relationsbuilding as Steering the Fair Groups), Work Commission, Eddy Declerq and COSCO’s acquisition of OOCL are has remained vacant and the SAL VictoriaBryan nowSharkey, that Charleshas got hasthe ballsettled rolling in. (Humanso many Resources of our members Steering will Group), no doubt not expected to impact on membership structure has been under review. Initial in revitalising the SAL New South Davidbe familiar Pratt with(Bulk it! Shipping The ofce Group) maintains and numbers, as those lines are already Our New South Wales State Committee advertising for a full-time Policy and Wales Shipping Industry Golf Day at Johna full-sized Thompson meeting (Maritime room withLegal modern Steering members of SAL and have announced has been particularly active. We saw the the Coast Course, Little Bay, and we Group).video conference facilities. To mark the thatCommunications they will continue position to operate in August, separate departure of our long time Minister for did not yield a candidate that met the Roadshope Maritimeto have a and full Freight,course forDuncan the event Gay. move, a small ofce warming was held brands. In my frst year as chairman it has full expectations of the selection panel Ouron New04 March South 2020. Wales State chairman, on 24 October following the frst Policy been a bit of a revelation to be more Thereand has the been position much will going be re-advertised on in policy in Bill Rizzi and CEO Rod Nairn have Council meeting held at the new ofce. Rod Begley (Swire CNCo) is continuing intimately involved with the work of andthe advocacy new year. throughout 2017. Matters subsequently met with Minister Melinda as SAL Victoria State Committee theIt’s beenSAL team. a challenging The SAL year secretariat for the being addressed by SAL include: Pavey, and SAL has been invited to join I am particularly pleased to welcome chairman and is ably supported by shipping industry, and no-doubt availability of equipment to support the Ministerial Freight Advisory Council. works very hard behind the scenes to Michael Travers (MSC) as the new Victorian State secretary, Charles 2020 will be equally as demanding. I exports; coastal shipping amendment As has been the trend over many provide public comment and infuence SAL Queensland State Committee Masters and deputy chairman James would like to thank my fellow Board bill; MUA’s expansion plans; passage of years, the New South Wales events, policies, provide concise summaries of chairman. Travers is well supported Kurtz. Victoria has been a focus of members, voluntary ofce holders and Harper Review amendments and scoping expertly coordinated by State secretary important information for members and much attention by SAL this year, the energetic and enthusiastic SAL of blockby Queensland exemption; State amalgamation Committee of Melwyn Noronha, have been generally support members to provide sustainable particularly over proposals to amend staf and for their continuing hard work Customs,secretary, Immigration Geof Dalgleish, and Attorney who has oversubscribed this year and invitations international shipping. In closing, I would to prevent obstructive regulation, to Generalkept membersfunctions; engagedvisa requirements and informed for usuallythe Port limited Pricing to members Order to supportand their early like to thank our small but efective amend practices that inhibit efcient FPSO;through IMO Statedevelopments; committee ballast meetings water and guests.investment This yearin on-dock the events rail, included:and a State SAL team for their professionalism and conventionsocial events. implementation Geof has and continued charges; Parliamentarycoastal shipping Lunch; review. Newcastle That said,Club I ongoinginternational dedication trade andto providing to help our these biofouling;to corral national members, freight associates and logistics and regionalcongratulate lunch; theChristmas Port of Lunch;Melbourne, and a services.members conduct their business fairly supporters to maintain the tradition of Victorian Ports Corporation Melbourne, and sustainably throughout the year.

86 Shipping Australia Limited Annual Review 20192017 Shipping Australia Limited Annual Review 2019 9 CEO’S REPORT

Providing essential shipping industry support

By ROD NAIRN

Throughout this year Shipping and the Government has undertaken this scheme is not without cost, those Australia has again taken the to consult fully to identify how to vessels approved under the scheme lead in key international shipping implement and resource a system can achieve major cost savings by and trade matters and delivered that will improve traceability and avoiding mandatory seasonal pest signifcant benefts to members accountability of imported products. inspections on arrival, thus reducing and the shipping, agency and inspection costs and time delays For three years, SAL has been international trade industry overall. and loss of berth prioritisation. supporting the principle of Unfortunately, as the current season competition in pilotage with At the beginning of January, has ramped up it is clear that the representation to the pilots’ continuing the fasco of the previous Department of Agriculture is not association, Victoria’s Government, year, biosecurity levy consultation following their own protocols and maritime safety regulator and port meetings punctuated the holiday delays in decisions and unjustifed regulator, to ensure that the new period. SAL continued to question vessel re-inspections have been entrant to the Melbourne pilotage the fawed logic of the concept and costly to the shipping industry. This market was treated fairly and corralled opposition to the proposed is an area where service levels need reasonably. This year the Australian levy across the import and export to improve substantially. supply chain. Throughout the frst Pilotage Group, who commenced the quarter we led the attack with media competitive service in Melbourne, Hull fouling regulation was introduced statements and, with the facts on was acquired by Boab Investments this year, and again, through the our side, criticised the levy proposals (the owners of Australian Reef continuing engagement of SAL at the at the ALC Conference panel Pilots) and has shown that it is a Marine Pests Sectoral Committee, discussion. Ultimately, concerted safe and sustainable operation that the regulation took a reasonable industry opposition led to Minister will continue to grow and provide approach to the management of hull Littleproud’s appointment of an both safety improvements and a fouling and the form of regulation expert panel to review and report on competitive restraint on price. Since that was adopted to manage the risk the proposed levy. While sceptical this competitive service was mooted, of introducing marine pests on ships that the expert panel was merely price rises in Melbourne have been hulls. We have also been pro-active a smoke screen to divert industry modest and in line with CPI. This is in pushing for cohesive State and criticism before the Federal election, another example of SAL delivering Federal Government approvals for the diverse panel worked diligently to ongoing cost saving to shipping lines. in-water cleaning, though at this point approvals have only been granted in produce a consensus report. The Bio Brown marmorated stink bugs Queensland and Western Australia. Levy Report sent to the new Minister have been a signifcant cost burden for Agriculture, Senator Bridget on imports and shipping lines, The impending change to compulsory McKenzie on 31 March, confrmed particularly break bulk and PCC low sulphur fuel has been a the industry criticisms and made have borne a substantial burden. continuing concern throughout the recommendations to make the levy SAL has continuously engaged year and will be a reality by the fairer and less costly to Australian with the Department of Agriculture time you read this. After regular consumers. The assessment process to apply reasonable protocols and prompting, AMSA has recently continued until December, and has intervened directly on behalf published advise of which ports and fnally we were pleased to see that of members when requested. terminals will have compliant LSF Government took heed of much of Potentially, one of the greatest available. Though the questions on the report. While one ffth of the levy cost saving measures for the PCC/ compatibility of diferent variants has been identifed in higher cost RoRo industry at least, has been of LSF remain largely unresolved. recovery fees on ship arrivals and the negotiated development of the Fortunately, the eforts of the fuel import processing, the remainder “BMSB Voluntary Vessel Scheme”. supply companies to advertise their has been removed from the budget, While meeting the requirements of products should allow compliance,

10 Shipping Australia Limited Annual Review 2019 MSC Tianjin, 323 meters long, swinging in Fremantle and have gone some way towards a group of volunteers (with the support of shipping industry training courses as part providing information to enable safe SAL, industry partners and the ITDF) to of their indoctrination training for new operations, but no doubt there will be highlight the importance of shipping and employees, and as career advancement hiccoughs. the critical role that the humble container education for the not so new. has played in making world-wide goods It would be unusual to go through a year available to consumers anywhere on the SAL has also been active with without talk of coastal shipping and, globe. Read more about it and see the improvement to communications and after a hiatus, a general election, and movie at https://shippingaustralia.com. messaging, to enhance our infuence some prompting by SAL, yet another au/celebrating-50-years-of-international- in policy matters and to keep the review has been announced. This time container-shipping-for-australia/ public informed. Our use of Twitter (@ the scope of the possible changes has ShippingAus), Linked-In and broadcast been clearly defned in the Deputy Prime Container – The box that changed the email through Signal, are all focused Minister’s advice letter, and this enables world – is a continuing static display of on improving our public information more focus to be placed on the possible. containers and their impact on every and member visibility. Meanwhile, our Shipping Australia’s submission generally Australian, conceived and delivered fagship Shipping Australia Magazine recommends a reduction in unnecessary by the Australian National Maritime continues to attract positive comment bureaucracy, that where there is no Museum with the support of industry declared Australian fag shipping to partners. This display started at Darling and confrm our position as the most protect, the onerous waiting times and Harbour, Sydney and has since moved infuential shipping industry association cargo limits be relaxed. At the same to Wollongong, Narrabri, Wagga and is on the Australian scene. Our most time, we have indicated that there should now in Fremantle. It has already been recent innovation to improve member be preferred access to the coast for seen my more than a quarter of a million engagement is the release of the those shipping companies willing to train people. SAL App on both Apple IOS and Australian deck ofcer and engineer Android. This SAL App provides easy I would like to congratulate NSW Ports cadets. The frst general consultation access to SAL Web information as and successive former New South session was held in December and well as introducing the capability for Wales State Government’s on the 40th a reasonable level of agreement was push messaging, and will soon allow anniversary of Port Botany container reached. There might just be some room Policy Council members to access the facility. The move from Port Jackson to for optimism this time around. members-only documents easily, while Botany was contentious in 1979 but has on the road. Search for the Shipping This year we celebrated the 50th proved visionary and essential to the Anniversary of the arrival of the delivery of efcient container services in Australia Limited (SAL App) in the Apple Encounter Bay, commencing the era of the State. App store or Google Play. international container trade connecting SAL on-line training courses, The international shipping industry is Australia to the world. Shipping is a Introduction to Shipping, Fundamentals the unsung hero of Australia, it provides vital but virtually invisible industry to the of the Maritime Industry, Reefer Cargo Australia’s economic prosperity through majority of the Australian population, and Handling and Chain of Responsibility exports and is essential for every it has been fantastic to see two landmark are intended to provide concise and Australian’s way of life by providing the activities to promote knowledge of the essential information to the international imported products we all desire. But industry, coincide with this historic year. shipping industry and continue to be without the eforts of Shipping Australia The documentary movie The World in a ofered to members at discounted rates. Limited it would be an easy target for Box has been professionally produced by Readers are encouraged to utilise SAL’s additional levies and charges.

Shipping Australia Limited Annual Review 2019 11 SAL STRUCTURE

SAL Staff

Melwyn Noronha, general manager, technical services and industry policy; Bryan Sharkey, company secretary/fnancial controller; Rod Nairn, chief executive ofcer; Sharyn Flood, executive assistant.

National steering groups State committees

Border Agencies Steering Group New South Wales State committee • Chairman: Dorian Moga • Chairman: Bill Rizzi Container Steering Group • Secretary: Melwyn Noronha • Chairman: Dexter Vaz Queensland State committee Human Resources Steering Group • Chairman: Michael Travers • Chairman: Eddy DeClercq • Secretary: Geof Dalgliesh Maritime Legal Steering Group South Australia State committee • Chairman: Dorian Moga • Chairman: Paul Paparella Public Relations Steering Group • Secretary: Rod Nairn • Chairman: Rod Nairn Victoria State committee Technical Steering Group • Chairman: Rod Begley • Chairman: Andrew Karas • Secretary: Charles Masters Bulk Shipping Group Western Australia State committee • Chairman: David Pratt • Chairman: Kristy Craker Liner Shipping Steering Group • Secretary: Rod Nairn • Chairman: TBA

12 Shipping Australia Limited Annual Review 2019 POLICY COUNCIL

Policy Council representatives attending end of year meeting

Policy Council members [representatives]

A.P. Moller-Maersk A/S Hapag-Lloyd (Australia) Pty Ltd Pacifc Asia Express Pty Ltd (PAE) Ken Downie [Andrew Cumming] Clinton Evans [Anurag Aggarwal] Michael Horsburgh [Mario Fernando] Asiaworld Shipping Services Inchcape Shipping Services Quay Shipping Australia Pty Ltd David Pratt [John Van Pelt] Darren Dumbleton Graeme Simpson [Ken Fitzpatrick] K Line Australia Pty Ltd Seaway Agencies Pty Ltd Alan Miles [Phillip Homes] Austral Asia Line Pte Ltd Craig McElvaney [Alan Sims] LBH Australia Pty Ltd Christophe Grammare [Frank Mueller] Ship Agency Services Pty Ltd Johnny Tam [Clinton Wonfor] BBC Chartering Australia Pty Ltd Kristy Craker Alex Wellington [Maren Igel] Mediterranean Shipping Co (Aust) Pty Limited Smit Lamnalco Towage (Australia) CMA CGM Group Agencies Dorian Moga / Bill Rizzi Pty Ltd (Australia and New Zealand) David Fethers Mitsui OSK Lines (Aust) Pty Ltd Pty Ltd Hideyuki Irisawa Svitzer Australia Pty Limited Shane Walden [Haroldo Stival] Nicolaj Noes [Ivan Spanic] Monson Agencies Australia Pty Ltd Evergreen Marine Australia Pty Ltd Rob Davis The China Navigation Company Murray Read [Albert Wong] Neptune Pacifc Line Pte Ltd (Australian Branch) Gulf Agency Company (Australia) Rolf Rasmussen [Bill McDonald] Greg Metcalfe [Peta Kelly] Pty Ltd NYK Line (Australia) Pty Ltd Wallenius Wilhelmsen Logistics A/S Scott Henderson [Gareth Long] Tsukushi Sato / Robert Moran Sunil Dhowan Hamburg Süd Australia Pty Ltd OOCL (Australia) Pty Ltd Wilhelmsen Ships Service Pty Ltd Geof Greenwood [Dominic Enthoven] Eddy DeClercq Michael Buchanan [Adrian Peterson]

Shipping Australia Limited Annual Review 2019 13 LINER SERVICES

A liner class exemption now in sight

By ROD NAIRN

SAL continues to provide Part X registration services to those lines operating consortia agreements and vessel sharing arrangements. These services are provided to members and non-members but preferential rates apply to SAL member companies. While there has been a general withdrawal from Vessel Discussion Agreements in our region, most if not all, of the liner loops servicing Australia are covered by vessel sharing/slot swap agreements registered under Part X of the Competition and Consumer Act. A liner class exemption On the policy side, we have continued to communicate with the ACCC regarding their development of a class exemption that could reduce the red tape for shipping lines, whilst providing protections from elements of the Competition and Consumer Act. After a quiet year, in mid-December the ACCC issued their long-awaited discussion future of Part X would be determined. The ACCC has spent the past two years developing a class exemption paper seeking comments on a A class exemption is a low to cover ‘collective bargaining’ and possible class exemption for ocean compliance cost way for the ACCC has now started the process of carriers providing international liner to grant businesses an exemption cargo shipping services to and from developing a class exemption that from competition law for certain Australia. would provide legal protection for ‘classes of conduct’ that may certain types of coordination among otherwise carry a risk of breaching Liner shipping currently have access liner shipping companies and their competition laws, but do not to a wide suite of exemptions customers, without them having to from Australia’s competition law substantially lessen competition, and/ apply to the ACCC. under Part X of the Competition or are likely to result in overall public and Consumer Act. However, the benefts. A class exemption would Shipping Australia is currently 2015 (Harper) Competition Policy provide a ‘safe harbour’ for eligible coordinating meetings with all liner Review recommended that Part X be businesses to coordinate operations shipping interests to try to reach a repealed and that the ACCC develop without breaching competition consensus position from the industry. a class exemption for liner shipping law. It would operate alongside the A coordinated submission will be agreements that meet a minimum ACCC’s existing ‘authorisation’ and made to the ACCC by 28 February standard of pro-competitive features. ‘notifcation’ processes, which a 2020, and some individual lines, The Government response decided business that falls outside the class international shipping representative that Part X would remain in force exemption could still use to seek groups and shipper representatives until a suitable class exemption was legal protection on a case-by-case are also expected to make developed and proven, before the basis. submissions.

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seatradeasiaawards.com Shipping Australia Limited Annual Review 2019 15 STATE COMMITTEE REPORTS New South Wales

By MELWYN NORONHA, secretary

at Sea (SOLAS), introducing the Hapag-Lloyd, Evergreen and OOCL requirement to verify the gross mass have all introduced fnes for shippers of a full container prior to its loading who mis-declare dangerous goods. on board the vessel. Stakeholders worldwide are SAL’s State Committee continues exploring industry’s eforts to to monitor any happenings in the stamp out undeclared and mis- VGM Space, to sense any onset of declared shipments, poor packing behavioural change in the supply and securing, as well as other chain. cargo-related malpractices, while highlighting the gaps that remain, and The committee continues to seek necessary actions to protect lives, the input from its members shipping lines, environment, ships and cargo. stevedores and AMSA, for any early sign of non-compliance. The general consensus is that shippers must take more responsibility As mentioned last year, the realisation in mitigating the malpractice of cargo of the IMO’s VGM regime would be misdeclaration, which has led to these evident if regulatory authorities were containership fres over the past year. to publish their policing activities (if any), similar to those published for The Code of Practice for Packing Port State Control. Industry continues of Cargo Transport Units, a joint to be in a vacuum in terms of data, International Maritime Organization/ and one would not wish to see that a International Labour Organization/ lack of adequate policing by regulatory United Nations Economic Commission authorities worldwide is encouraging for Europe instrument, known as the And yet another year goes by at the shippers to ignore the rules. CTU Code, has been in place since 2014. However, unlike the IMDG helm of the New South Wales State SAL continues to advocate regulatory (International Maritime Dangerous Committee, dealing with a range of interventions of onshore premises Goods) Code, it is not mandatory. shipping and logistic issues. Bill where VGM calculations may Rizzi continues to be the committee’s originate, to add reliability to this In the absence of a regulatory body to chairman. regime. enforce these guidelines, the reporting responsibility for ensuring that the SAL moved into new premises this Mis-declared dangerous cargoes – contents in a container are correct, year in the Fair Work Commission an emerging issue falls frmly with the shipper. building on William Street, Following on from VGM, non- Woolloomooloo. Meetings this year Shipping channel service at port of declaration and misdeclaration of were held at the 1-Stop, Hutchison Newcastle – price controls revoked dangerous goods has been thrust terminal and Port Authority of New into the industry spotlight, following a The case of the declaration of the South Wales. The last meeting for spate of containership fres. shipping channel at the Port of 2019 was held on 11 December 2019. Newcastle, as a service, continued The MSC Flaminia incident in July into this year, along with the Australian New South Wales Freight Advisory 2012, claimed three lives and has led Competition Tribunal deciding to Council refreshed to regulatory changes, as well as a revoke the declaration it made in 2016. SAL State chairman continues to be a seminal judgment on liability between member of the council. As a result of stakeholders. The Maersk Honam The sale of the Port of Newcastle in the New South Wales State election incident in March 2018, in which fve 2014, saw a 68 per cent increase in earlier this year, the council has not seafarers were killed, has become the the navigation service by the new convened, and SAL has been advised catalyst for the kind of industry resolve private operator, Port of Newcastle that the council is being refreshed. that began to take shape throughout Operations Pty Ltd (PNO). 2018. While the Yantian Express fre It is imagined that SAL will continue Readers will recall that in June in January 2019 – followed by others to be represented and contribute in 2016, the ACT declared the shipping through the year – has raised the providing advice on shipping related channel service in Newcastle, under volume of concern further. matters, especially relating to freight in the relevant section of Part IIIA of the and around port areas. The frequency and severity of Competition and Consumer Act, from Verifed Gross Mass (VGM) – three incidents has set alarm bells 8 July 2016 until 7 July 2031. This years on ringing. Container shipping is now meant that disputes relating to the highly focused on an issue that not price of access to channel services It is now three years since the only incurs signifcant extra costs (navigation service charge) were International Maritime Organization and delays to cargoes but more subject to an independent and binding (IMO) amended the International importantly, puts lives at risk. Big arbitration by the ACCC, with the Convention for the Safety of Life name box carriers including Maersk, potential for consequent changes in

16 Shipping Australia Limited Annual Review 2019 prices and revenue (depending on the outcome of any arbitration). However, in July 2018, PNO made another application to the National Competition Council seeking a revocation of the declaration of the shipping channel service at the port of Newcastle. The Council commissioned a consultant to assist the council’s consideration of whether declaration of the shipping channel service at the Port of Newcastle would be likely to satisfy the criterion set out in section 44CA(1) (a) of the Act, in respect of the coal tenement’s market. The consultant’s report was completed in April 2019. SAL New South Wales Christmas lunchon (left to right): Philip Holiday, CEO Port Authority In July 2019, the Minister, the Hon New South Wales; Eddy Declerq CEO OOCL; Marika Calfas, CEO NSW Ports; Bill Rizzi, Josh Frydenberg MP, received a chairman SAL New South Wales State Committee; Nicolaj Noes, CEO Svitzer; Robert Dunn, recommendation from the council chairman Port Authority of New South Wales, Paul McClintock AO, chairman NSW Ports; recommending the declaration of service Rod Nairn, CEO and Scott Henderson, chairman, SAL at the Port of Newcastle made in 2016, be revoked. price increases (such as those in 2014) at It noted that if the Part IIIA access The Minister did not publish his decision the port will follow. regime does not apply to an unregulated monopolist, there may be an increased on the council’s recommendation In its submission on this issue, need and consideration for alternative within the stipulated 60 day period, the Australian Competition and industry-specifc access regimes to which meant that a decision to revoke Consumer Commission (ACCC) raised address specifc instances of market the declaration had been made. This concerns about the broader impacts failure. means PNO will continue to remain an of unregulated monopolists, and the unregulated monopolist that is able to potential for unconstrained market power The chronicle on this matter continues, determine the terms and conditions of its to be used to the detriment of users with Glencore and the ACCC appealing access with little constraint, and further and to competition in related markets. the ACT ruling and lodging separate

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Shipping Australia Limited Annual Review 2019 17 Guests enjoy the SAL New South Wales State Committee Christmas lunch appeals in the Federal Courts of The same practice continued after the being forced to depart the port due to Melbourne and Sydney. privatisation of Port Botany and Port berth congestion and tidal restrictions, Kembla in 2013. coupled with the lack of a suitable Navigation Service Charge: anchorage or other alternative within the double charging - bureaucracy or When carrying out any of the above port limits. They already incur additional opportunism? procedures, the pricing practice of the former Maritime Services Board, Sydney pilotage and towage charges and should In recent months, a development has Ports Corporation, as well as the current not be further fnancially penalised due to emerged in the Port Authority of New Port Authority of New South Wales, has the limitations of the port. South Wales’ approach towards the been for the navigation services charge application of the navigation service Shipping Australia considers such an charge. Attempts are being made to (NSC) to be applied only once to the approach unfair, given the set precedent reverse a long-standing pricing practice vessel in either of the above cases. and the long-standing operation in the application of this charge, which In 2002, to formalise the above long- procedure and pricing policy applied. on average, amounts to $60,000 per standing and operational procedure and It has reached out to the Authority to vessel visit. pricing policy, the Ports Corporatisation adopt a pragmatic approach, as well made a submission to Transport for It is a well-accepted phenomenon for & Waterways Management Regulation NSW as the government agency, who ships visiting a port on a single voyage, 1997(NSW) (now known as the Ports have for some time been undertaking the to be required to shift berths for a range and Maritime Administration Regulation of reasons, such as completion of a 2012) was amended accordingly, as periodic review of this Regulation. It is discharge and move to another berth to an exemption from the requirements timely that this long-established pricing load another cargo, or in the case of the of the overarching Act. However, the precedent be accurately incorporated tanker trade, move from berth to berth to exemption erroneously only included into the Regulation (as was done in 2002) load and/or discharge diferent parcels movements between ports i.e. (a), and to include circumstances where a vessel, of cargo. In doing so, based on the not re-entry to the same port on the for operational reasons, may be required circumstances and availability of berth same voyage. to leave a port and re-enter. space within the port facility, the vessel This can only be construed as a glaring In efect, two ports are being treated could be required to leave the berth and omission at the time, as the existing as one, but attempts are being made temporarily anchor before re-entering pricing policy (to charge once for re- to treat one port as two when applying the port. Such has been this operational entry) continued for over 17 years, even the NSC. One hopes that pragmatism procedure worldwide, and ships and after the amendment to this Regulation. prevails, and the reviewed Regulation is ports are not foreign to it. However, after 17 years, early this year amended accordingly. The same has been a historical long- the Authority started to issue invoices standing operational procedure in IMO’s 2020 Low Sulphur Fuel (LSF) - to apply the NSC twice. This occurred it’s here! New South Wales ports, especially where vessels were forced to leave the Port Botany and Port Jackson. Prior port boundary for operational reasons The worldwide implementation of this to corporatisation of these two ports and re-enter despite being on the same important new IMO requirement from 1 and even after (1995), vessels have voyage and not having travelled to January 2020, is only days away and as undertaken the following operational another port. one publication put, it is chaos. procedure at these two ports: This new opportunistic approach plainly Most of the shipping lines have by now, a) Moved between Port Botany and Port departs from the long-established already decided on the best way to Jackson and vice versa; and precedent, ignores the limitations of each deal with this new sulphur cap, with a b) Re-entered each of them after port, and has raised concerns among combination of options such as burning temporarily leaving for reasons outlined SAL members, especially those in the compliant fuel, installing scrubbers or above. bulk fuel trade. Bulk fuel vessels are retroftting with LNG engines.

18 Shipping Australia Limited Annual Review 2019 Apart from the signifcant additional cost industry and causing disruptions to Authority of New South Wales, and of compliant fuel, implementation will be the global trade. Masters should exert Nicolaj Noes, CEO Svitzer, spoke at the complex because of the sheer magnitude caution when controlling movements at Biennial Newcastle Luncheon held at the of the switchover, and the much critical junctures of their passage plan, Newcastle Club. larger quantities and diferent types especially when in port areas. As always, the year’s fnale event was of fuel involved, as well as continuing In the Australian context, following the SAL New South Wales Christmas uncertainties about the availability of some persistence from SAL, the fuel oil Luncheon. Held at a new venue, the compliant fuels in every port worldwide, supplier lists have now been updated Hyatt Regency’s Maritime Ballroom, the immediately after 1 January 2020. on AMSA’s website: https://www.amsa. lunch was a sell out and resounding Recent reports from Singapore suggest gov.au/marine-environment/air-pollution/ success. Sponsored by NSW Ports, a shortage of bunkering vessels. Fuel register-local-fuel-oil-suppliers. AMSA with entertainment sponsored by the barges are being taken ofine for tank has advised that this list will be kept Port Authority of New South Wales, cleaning ahead of IMO 2020, which updated with any new information from members and their guests enjoyed this is causing delays. At the same time suppliers, as it comes to hand. fantastic venue. Shipping Australia once Bloomberg noted that the preparations AMSA has advised port users to discuss again sponsored the table gifts this year for the IMO 2020 switch and resultant their fuel requirements with suppliers, and, as was the case last year, invitees longer waiting times for delivery, were as low sulphur fuel oil (LFSO) may be included seafarers from a visiting ship, causing confusion and congesting available at additional locations where who were transported to and from the bunkering anchorages in the Malacca heavy fuel oil (HFO) is supplied, via prior venue by the Mission to Seafarers. Strait. long-term contractual arrangements. The chairman and secretary are According to the Maritime and Port It is estimated that 20 per cent of the extremely appreciative for the continued Authority of Singapore, the cleaning of approximately 300 barges supplying support and interaction by all members barges’ cargo tanks is being carried out HSFO in Singapore have already of the New South Wales State progressively with 30 per cent already switched to supplying LSFO. Committee at the meetings, and their completed, and the authority is working input on issues that impact shipowners closely with industry stakeholders on a Functions and agents. smooth transition to supply compliant The Committee arranged three New challenges are on the horizon for fuel, and doesn’t expect any congestion sensational lunches during the year. the new year, with the management of from 1 January 2020. In June, Ms Eleni Petinos MP, empty container parks and containers In particular, fears have been raised Parliamentary Secretary for Transport being one. The ongoing need for these that new fuel blends are likely to and Roads, was the guest speaker at parks will be an interesting consideration cause mechanical failures in ships, the Parliamentary Luncheon, and in as new intermodal terminals becoming jeopardising the overall safety in the September, Grant Gilfllan, CEO Port operational.

Queensland

By GEOFF DALGLIESH, secretary

In last year’s review, I remember starting cooled somewhat from the turmoil of the of with a comment that this dreadful previous fve or six years. Still, with the drought was having a huge efect on our continued increase in size of vessels, agricultural industry. It has afected all the drought conditions and import and areas of agriculture and, in particular the export fuctuations, it is hard to see grain industry. these larger vessels being flled easily. All ports in Queensland involved in It must have an efect on rate levels, the import and export of agricultural and with the introduction of the new products have been hugely afected. lower sulphur emission levels next While the drought continues, the year, also an efect on costs. Despite damage it has on other industries that vessels being newer and bigger and supply and or provide services, is also more efcient, the increase in running horrendous. costs, bunkers etc., must take its toll, and I wonder whether this in itself will All we can do is pray that we have a create more activity for this sector of the very good wet season to put smiles industry. back on our farmers faces, and the same for the communities they live in, Liner TEU volumes are down year to and above all improve hope in their date, to and from our major ports. hearts. Overall imports are down by as much as 20 per cent for some ports, with one Moving on from the drought, it appears up by approximately 5 per cent. So, that the climate in the shipping industry, there is a lot of variation there. On the in particular the liner industry, has other hand, exports from major ports

Shipping Australia Limited Annual Review 2019 19 STATE COMMITTEE REPORTS

are down between 5 per cent to 12 night a success. per cent. Other issues during the year, which Western Motor vehicles have sufered as well, we are currently or will be afected with statistics down from the previous by, are the new Biosecurity Levy and year, between 12 per cent to 15 per the introduction of lower fuel sulphur Australia cent. levels, from January next year, which Bulk commodities have fared pretty have been widely reported nationally. By ROD NAIRN, secretary well over the year, either being slightly A local issue in Brisbane, on the use up or at least level with the previous of Qships (at least up to the 24 hour In Western Australia, Kristy Craker (Ship year. window) and how it was not fully Agency), has completed her frst year as Wind turbines have made a solid utilised by some users, has been State Committee chairman, and presided contribution to our imports over the resolved and should streamline its use over two State Committee meetings in year and will continue, as it is related for all users in the future. May and October. to the State Government’s target of On another note, the SAL Queensland At Fremantle Ports, like other capital city getting Queensland to their 50 per chairman’s seat has been vacant for ports, the big efort to accommodate cent renewable target by 2030. the past year and a half, but I am larger container ships is starting to pay In May, we held our annual Golf Day, pleased to ofcially announce the of. Through simulation, under keel which was well attended and raised position will be flled at the start of clearance prediction and real-time wave $2,000 for the Mission to Seafarers 2020. The new chairman is Michael and tide monitoring, ships of 9,500 TEU and Stella Maris. We had 92 players Travers, from MSC. We wish him well have already visited the port, and they attend this year and all enjoyed the for his tenure over the next two years. are expected to get even bigger. The day immensely. Again, I must thank limitation is that bulk liquids berth No. 1 Finally, the SAL Annual Luncheon was the sponsors for their contributions to must be clear when ships greater than held in December, with special guest help make the day so successful. 315 metres long and 43 metres beam speaker being Sam Thaiday. Sam enter or depart. The limiting factor for Our Annual Shipping Industry Maritime spoke about his football career, highs length is the ability to swing ships in the Ball was in October, with 140 people and lows and where he sees his future river which is about 340 metres. attending. Our venue this year was career. Sam is a very good presenter The DP World terminal is already Events on Oxlade, New Farm. We had and very humorous. a new band and a new venue. P&O equipped with 50 metre reach, post Cruises provided our major rafe prize I must say again, thanks to all our panamax quay cranes, and in May, a this year, which was a three day cruise sponsors for the support of our similar crane was installed at the Patrick for four people. In addition, Smit functions over the year, and all the terminal, with another to arrive early in the new year. Lamnalco sponsored three prizes of suppliers within our industry that do Visa cards. We are extremely grateful the same. From an infrastructure perspective, to all our sponsors, major and minor, Finally, I would also like to ofer the development of options for a new who commit to this special evening thanks for all the support, advice and container port ‘Westport’ has been every year. Without their support, friendship given to me from many the focus of much attention. While the Ball would not happen. Our people within our industry over the the fnal decision and timing is as yet benefciaries this year are Mission year. undecided, the original 25 options have to Seafarers and Stella Maris, with a been reduced to fve and realistically donation of $4,000 each from funds May I take this opportunity to wish down to two: a long-term container port raised at the Ball. I would also take all members, associate members and development at Kwinana, and for the this moment to thank the contribution readers, a very Merry Christmas and a short to medium-term, a shared option from the Ball Committee, for all their happy and safe New Year and between the existing Fremantle port and work and commitment to making the 2020. a new Kwinana development. But for either of these to work, there are some important actions which are being taken now, including: preserving the transport corridors to Kwinana; optimising South Australia Fremantle for the short-term, and resolving the conficting environmental By ROD NAIRN, secretary and residents’ concerns relating to the Kwinana development.

After the time-consuming process new pilot vessels to support increased In the north of the State, Port Hedland of gaining Environment Protection shipping trade. Paul Paparella continues to set volume records as the Authority approvals earlier this year, (Asiaword) continues as South largest iron ore port in the world. Their the completion of the Adelaide Australian State Committee chairman, channel risk optimisation project was Outer Harbour channel widening keeping abreast of State and local completed in September, providing an in November has paved the way to matters and representing Shipping emergency passing lane and improved Adelaide hosting post panamax ships. Australia on the South Australian capacity. A new port control tower was Also this year, the port launched two Freight Council. commissioned in July.

20 Shipping Australia Limited Annual Review 2019 Victoria

By CHARLES MASTERS, secretary

Pilots and Svitzer, to navigate vessels importance is prompt reporting of of 324 metres and 43 metre beam, to any failures to AMSA. It will not be Swanson Dock has been remarkable. acceptable to report a failure outside Swanson Dock was designed around the Port Phillip Bay, without also providing a limits Panama Canal originally aforded, remedial plan. with vessels maxing out at 32 metres. Following on from our 2017 breakfast In bringing larger capacity vessels into where the subject of Blockchain was frst Swanson Dock, the Port of Melbourne introduced, major carriers have since proposed to undertake a $300 million collaborated to establish Tradelens. At investment to increase rail capacity, with this stage, a few Asian-based carriers a view to recovering the outlay through have so far not joined Tradelens. a levy added to existing import wharfage However, it is understood the Chinese charges. This created consternation Government seeks the adoption of among member lines, who sought clarity Blockchain and on this basis, those around co-development of inland rail carriers and associated providers depots. Of greater concern was Webb who remain ambivalent to Blockchain Dock would remain at a commercial processes may struggle. Recent disadvantage until it had access to rail, in turn the inland distribution terminuses. headlines highlighted the necessity Whilst we agree more has to be done to of Blockchain to provide end users remove heavy vehicle trafc within the the validity and security of knowing in precinct of the port, we remain to see a particular, the origins of food. Seemingly study exploring the viability of deploying for every kilogram of Australian beef sold barges on Port Phillip Bay to assist with in China, a further nine kilograms could The State Committee met during the decentralising task. be fake. One company exporting beef December 2018, which incorporated to China is putting systems in place, and its AGM, installing Rod Begley (Swire & One member with the technology to with the adoption of blockchain ledgers Co) as State chairman and James Kurz weigh containers during the vessel ensuring the products origin from feedlot (Coastalbridge) as deputy chair. The exchange, regularly reported a high level to fork, is secured to fght fraudulent appointment of both has been hugely of variance to declared gross weights, activity. positive, both bringing the necessary mostly involving import containers from experience and enthusiasm to the less regulated jurisdictions. The subject At our 2019 Tech Takeover of Shipping Victorian Committee’s activities. has been addressed to AMSA through breakfast, the CEO of Infrastructure the Policy Council, the primary concern Four quarterly meetings were undertaken Victoria spoke of the revolution around being a fatality occurring beyond the during 2019, with three events staged, autonomous vehicles, including heavy terminal gates, a coroner could well fnd namely the Annual Golf Tournament for vehicles, whilst ASX listed Wisetech culpability across several actors. the Phil Kelly OAM Perpetual Trophy, Global spoke of the advancements a breakfast with two guest speakers The second pilotage service which made through their Cargowise product, discussing the “Tech Takeover of adopted helicopters to convey pilots and its substantial penetration of the Shipping” and fnally our Christmas around, was sold during the year to local forwarding market. On this score, Luncheon held at the frst home of a group involved in pilotage at other it remains to be seen if Wisetech Global Australian Tennis, Kooyong Lawn Tennis Australian ports. The recapitalisation will be sympathetic to Blockchain Club. of this pilotage service likely brings an applications, as its forwarder base fnds elevated commercial tone to the sector, the wider trading community adopting The year was punctuated with a number which until this juncture enjoyed the the common ledger. of developments, no less the relentless status of a monopoly. rationalising of services. This in part The Christmas lunch again proved was brought on by reduced demand, The year also began with much a highly successful event, with John uncertainty around the Federal political consternation around Australia’s Silvester, a crime reporter and regular and global trading environment, and capacity to provide low sulphur fuel, radio broadcaster, providing insights and a drought decimating large tracts of given the country had been behind commentary around matters involving otherwise productive acreage. Larger other supply points in providing updated the underworld in Australia, more capacity hardware deployed, also played specifcations, particularly as required particularly in Melbourne. The preceding its part in destabilising a number of by owners with newer tonnage. Sufce, AGM unanimously re-elected Rod trades and or reducing the frequency the 8th round table held in Melbourne Begley and James Kurz for another term of some services. Sadly, redundancies appears to have the subject largely as chair and deputy chair, respectively. usually result from rationalisation, under control, with Viva Energy set to and this appears set to continue, with produce the required specifcation of May we extend to all readers, seasons technology extracting further change to LSF in line with IMO rules. Of interest best wishes and lastly before we forget, work practices across industries. On is the consideration given to diferent Westlink Container Park won the Phil a more upbeat note, the collaboration scenarios where a vessel experiences Kelly OAM Perpetual Golf Trophy for between Victorian Channels, Port Phillip a technical issue. Of paramount 2019.

Shipping Australia Limited Annual Review 2019 21 YOUNG SHIPPING AUSTRALIA New South Wales

Information and membership building

By CAROL CHENG, marketing coordinator, HWL Ebsworth

It’s been another busy year at Young Shipping Australia, NSW branch (YSA NSW), with another wide range of events. As always YSA NSW aims to keep members informed with the latest maritime developments, as well as opportunities to learn new ideas and network with others within the shipping sector by regularly hosting functions for “under 35 year olds”. Although, our “young at heart” members are still Port of Newcastle always welcome to attend our events. The start of a new year meant YSA NSW’s frst event was a joint Fast. Effi cient. Environmentally Compliant. membership drive and networking drinks at Helm Bar in Darling Harbour. It was attracts fantastic speakers and a large Reverend Tay for ofering to drive our a great way to introduce some potential and enthusiastic audience. This year attendees to White Bay, while providing When Port of Newcastle required a solu on that would meet their performance and new members to what YSA NSW ofers, we welcomed Todd Emmert from Qube and a chance for old faces to catch up information on the good work of the environmental needs during their $33 million port expansion, we provided the answer. Logistics, Dianne Tipping from the Export after the holidays. Mission in ensuring seafarer welfare. 12m3 Chain Grab Council of Australia and Greg Metcalfe Port of Newcastle recently invested in two Page Macrae Engineering dust-controlled hoppers and Second on YSA NSW’s calendar, was from Swire Shipping, to give their views Rounding the year out was our two bulk grabs, to maintain produc vity, performance levels and meet environmental compliance the fagship “Outlook Event”, this year on Australia’s maritime space. YSA NSW networking drinks at Helm Bar in Darling while replacing their decommissioned conveyor-based system. hosted at Holding Redlich. The Outlook again thanks Holding Redlich for hosting Harbour, which saw an unprecedented Since commissioning, the new equipment has met our client’s performance expecta ons and Event continues to be YSA NSW’s the event, and each of their speakers for turn out from our shipping industry enabled a clean, safe, port environment. marquee event each year, and always lending us their time and expertise. friends. There were a lot of new faces and the excitement for 2020 was Next up was the Tug Tour hosted by Dust Controlled Hoppers Bulk Grabs defnitely on display. What a way to cap Engage Marine. Following last year’s • Easy to manoeuvre, quick to deploy • Wire, chain or diesel-hydraulic opera� on things of for 2019! success with the port and vessel tour, it • Ship to hopper spillage control • High volume capacity for high produc� vity Dust controlled loading spout was clear to us that our members loved Once again, and on behalf of the YSA • Controls dust at grab and discharge • Excellent sealing integrity across a wide a good tour. It was a great day out for NSW Committee, we would like to • Contains and lters dust range of cargo our attendees, with a short presentation thank all of those who have hosted and from Engage Marine and a light lunch to • Highly produc� ve • Remote controlled spoken at our events for 2019, and to kick start the day, before a tour on board • Easy to clean • Operator friendly its tugs. Attendees were even treated to all our attendees this year. Without your • Low maintenance a quick tour around Sydney Harbour on support, YSA NSW wouldn’t be able to P +64-7-575 5079 E [email protected] board Engage Marine’s tugs, which was continue doing what it does best! Things 61 Aerodrome Road Mount Maunganui New Zealand extremely well-received by everyone. A are looking up for 2020 and we hope huge thank you again to Engage Marine that it’s another huge year to grow the We are proud to produce high-quality port equipment for leading interna onal and local for its generosity for hosting YSA NSW organisation and continue to foster the customers throughout Australasia, Canada, South America and New Zealand. Our proximity to New Zealand’s largest and busiest port means we can manufacture and and also to Mission to Seafarers and next generation. service the global market. Follow us on LinkedIn.

Page & Macrae Limited E [email protected] P +64-7-575 5079 22 Shipping Australia Limited Annual Review 2019 page-macrae.co.nz Port of Newcastle Fast. Effi cient. Environmentally Compliant.

When Port of Newcastle required a solu on that would meet their performance and environmental needs during their $33 million port expansion, we provided the answer.

3 Port of Newcastle recently invested in two Page Macrae Engineering dust-controlled hoppers and 12m Chain Grab two bulk grabs, to maintain produc vity, performance levels and meet environmental compliance while replacing their decommissioned conveyor-based system. Since commissioning, the new equipment has met our client’s performance expecta ons and enabled a clean, safe, port environment.

Dust Controlled Hoppers Bulk Grabs • Easy to manoeuvre, quick to deploy • Wire, chain or diesel-hydraulic opera� on • Ship to hopper spillage control • High volume capacity for high produc� vity Dust controlled loading spout • Controls dust at grab and discharge • Excellent sealing integrity across a wide • Contains and lters dust range of cargo • Highly produc� ve • Remote controlled • Easy to clean • Operator friendly • Low maintenance P +64-7-575 5079 E [email protected] 61 Aerodrome Road Mount Maunganui New Zealand We are proud to produce high-quality port equipment for leading interna onal and local customers throughout Australasia, Canada, South America and New Zealand. Our proximity to New Zealand’s largest and busiest port means we can manufacture and service the global market. Follow us on LinkedIn.

Page & Macrae Limited E [email protected] P +64-7-575 5079 page-macrae.co.nz ADVERTORIAL IMO Sulphur Cap 2020 and beyond?

By HARWOOD MARINE

Environmental legislation around the world is increasing at a rapid rate and in many cases the problems are much greater than the solutions.

No other industry is more afected by the ocean. suspension in the water, and are only this than the shipping industry, which slightly infuenced by buoyancy, due To our knowledge this is the only has to comply with these new rules. to their small surface area. microbubble system that covers New technologies are emerging 100% of the hull wetted area, Large bubbles, require more energy to lessen the impact of the therefore having a much greater to produce and will tend to rise with requirements, but generally fall short energy and emission reduction saving buoyancy, which is why they are of making any signifcant reduction of than other bubble systems that only required to be trapped under the fat emissions. trap bubbles in the reduced surface bottom of the hull. area, underside bottom of the hull. Air Lubrication of ship’s hulls has These trial results can be viewed been around in some form, for a Trials to date have demonstrated a on the Science Direct research number of years, with three main very impressive 10% fuel saving and link https://www.sciencedirect. working principals :- Air Cavity, Air emission reduction on a 90 meter com/science/article/pii/ Film, and Microbubbles. vessel MV Filia Ariea in Europe, and S0029801814004314 Microbubbles have an advantage an 85 meter vessel in Japan, called Other encouraging results with over the air cavity and air flm-based New Ferry Misaki. ship trials, has been the reduction methods, in that it reduces friction The system involves installing small of biofouling on the area where without requiring any change in the vortex generators, called GILLS units, the bubbles pass, as air is toxic to form of the ship’s hull. around the bow and inducing air biofouling. Harwood Marine in Northern New through a mixing chamber. Bio fouling will be a major compliance South Wales have been working The vortices are generated by issue for shipping in the future, as on a unique hull friction reduction negative pressure on the wing on environmental laws around the world technology, using microbubbles, the GILLS units, this intern creates tighten, to reduce the efects of commercially marketed as GILLS very small micro bubbles through human intervention on our natural ( Gas Injected Liquid Lubrication the Kelvin Helmholtz Instability world. Naturally reduced biofouling, System), with Japanese inventor Mr (KHI) efect created by the vortex Yoshiaki Takahashi and his team of generator, and associated air reduces docking costs and hull drag research scientists in Japan. induction. This turbulence modulation between dockings. This is a unique technology, which enters the boundary layer of the Harwood Marine have their own targets the hull friction, which is one ship’s hull, Australian shipyard in Northern NSW of the major energy losses of a ship The GILLS system also difers from on the Clarence River near Yamba. when transiting on a voyage. other hull air induction systems, Future trials on larger ships are Regardless of the power system, or which use large compressors for the planned internationally for 2020 fuel used by a ship, hull friction and air supply, whereas GILLS uses the to confrm our predictions from drag through the water, remain as one speed of the ship as the prime mover earlier trials, but we would welcome of the largest energy losses of a ship. for bubble creation. Only a small enquiries from shipowners or “ compressor is required to maintain Ships powered by low sulphur fuel, the big Australians”, who would like atmospheric pressure on the wing, to to collaborate with us in Australia LNG, Electric, Wind, Steam, Solar or initiate the KHI microbubble creation. Nuclear, will still lose energy due to to save fuel, reduce emissions, and hull drag. Small bubbles, under 1mm diameter make the future world a better place are very diferent to larger bubbles. for our children. The GILLS technology uses very small microbubbles to reduce drag Small bubbles, only require a small Please contact Ross Roberts via on the hull as the ship moves through amount of air, and generally stay in www.harwoodmarine.com.au

24 Shipping Australia Limited Annual Review 2019 GILLS (Gas Injected Liquid Lubrication System) HULL Friction Reduction SHIP Technology - Reduce Fuel/CO2

Inspired by Nature Fish use Turbulence Modulation

Penguins hold their feathers down when surfacing to create microbubbles.

How Does GILLS Work?

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

www.harwoodmarine.com.au

Shipping Australia Limited Annual Review 2019 25 Phone: +61 418 666 598 Email: [email protected] SAL VOTING MEMBER UPDATES CMA/CGM - ANL Container Line

Customer focus from global to local

By XAVIER EIGLIER, chief executive ofcer, ANL Container Line

Developing a brand that has been group, sometimes ofering the same also conscious of the expectation our in operation since the 1950’s is a destinations, the group has worked clients and their clients have, in terms fair undertaking, altering business hard to align the brands with clear of corporate social responsibility models, product sets and strategic geographic regions. For ANL clients (CSR). direction is akin to turning a container based in Australia, this meant more ship. That said, in 2019 ANL took space on some existing services, as The CMA CGM Group’s long-term the opportunity to make a number well as further coverage of North East environmental approach has been of important changes, to position for Asia to Australia, in the addition of the in action since the 1990’s, with the the future and enhance customer CA6 service, complimenting ANZEX goal of reducing emissions at its core. experience as a key strategic goal. and the three A3 services. This was There has been much progress to in addition to the earlier deployment date, and the strategy to comply with Further enhancing customer of a second AAX service to provide IMO 2020 (new 0.05 per cent sulphur experience – a key focus greater coverage between South East fuel limits), coupled with a further goal For ANL, as part of the CMA CGM Asia and Australia. Clients have also to reduce CO2 emissions by 30 per Group, the programme to enhance been given a single contact point, cent, per TEU transported, by 2025, customer experience has occurred with all customer service and sales means this will remain a priority for in three main areas: simplifying team members working under one the long-term. Furthermore, the CMA processes for clients, enhancing banner in Australia and New Zealand. CGM Group has taken on projects the liner product set through brand This allows these customer facing with large global clients to test the rationalization and providing clients teams to be more reactive to client use of bio-fuel, to deploy several with more ancillary products. requirements. large new LNG powered vessels and taken a groupwide decision to avoid Simplifying processes for clients Finally, it’s very clear to ANL and the fragile environments, such as the has involved embracing more digital CMA CGM Group that providing a northern sea route. These signifcant tools in 2019. This has been a one-stop shop is still a preference investments are important on a global great success, with 80 per cent of for our customers, and more our customers using eCommerce convenience can mean providing and local level, and will continue with solutions to move their cargo on more products. Throughout Australia strong support from our clients. we certainly have a focus on high our services. With the addition of On a more local level, ANL launched value cargo, and our clients are paperless B/Ls and MyPrices (instant an additional CSR initiative in 2019, leveraging a broad set of products access to all negotiated rates) in called volun-TEUs. This aptly named 2019, the eCommerce platform ofers to help them protect cargo quality, manage exposure with insurance and volunteering programme allows team more speed, which is in step with our give them operational fexibility with members in our Melbourne ofce to client requests. In 2020, giving users innovative container applications. We lend a hand with charities committed the added functionality of single sign- look forward to adding more solutions to making a diference at a local on through our App, will also provide to this product set in 2020. level, ranging from alleviating food more fexibility and speed. insecurity to beach and waterside The environment and corporate This year, the CMA CGM Group clean ups. The programme has social responsibility has also helped simplify customer been received very well and will be experience by implementing a global Our customer is certainly at the expanding throughout all Australian brand rationalisation. With several core of our focus right now and will ofces, New Zealand and Papua New strong brands within the CMA CGM continue to be. Moreover, we are Guinea, in 2020.

26 Shipping Australia Limited Annual Review 2019 PAPUA NEW GUINEA

Port by Port and Ship by Ship, we provide full port agency services through our AUSTRALIA unique network. Our geographical coverage spans over 1500 different port locations, supporting over 2500 diverse clients. Our local knowledge enables us to deliver quality services where they are needed most, enabling our customers to ship smoothly and trade successfully.

Our services include: • Port Agency NEW ZEALAND • Liner Agency • Husbandry Services • Marine Survey and Inspection • Bio-Fouling and Underwater Inspection • Offshore Support Services • Bunker Coordination • Ship Maintenance • Spares and Supplies • Provisions and Stores • Cash to Master • Marine Survey and Inspection • Medical Assistance • Crew Movements and Logistics • Disbursement Accounting • Bunker Duty and Freight Tax • Coastal License

Australia New Zealand Papua New Guinea

Inchcape Shipping Services ISS-Mackay Ltd Inchcape Shipping Services Ground Floor, 120 Christie Street, The Shipping Exchange The Shipping Exchange St Leonards, 2 Akaroa Street, Parnell, Level 5, Mogoru Moto Building NSW 2065 Auckland 1052 Champion Parade, Port Moresby 121 Tel : +61 2 9410 8888 Tel : +64 9 3094 266 Tel: + 675 321 2599 Email : [email protected] Email : [email protected] Email : [email protected]

CONNECT TO A SMOOTHER, SMARTER OCEAN www.iss-shipping.com Shipping Australia Limited Annual Review 2019 27 SAL VOTING MEMBER UPDATES Inchcape Shipping Serivces

What lies beneath

By DAVID PRATT, vice president, Marine Services Australasia and Global Survey and Inspection, Inchcape Shipping Services

Biosecurity has become increasingly prominent in our industry, with BMSB, and African Swine Fever currently being at the forefront of our minds. However, the hull and niche areas of every vessel that passes into Australian waters has the potential to carry invasive pest species, making detection and control challenging, if not near impossible. The environmental and commercial impacts of invasive pest species cannot be undervalued. Our aquaculture industry delivers direct value of more than $1 billion per year, and the risk of the introduction of pest species such as the Asian Shore Crab and American Slipper Limpet are high. Tourist attractions, such as the Great Barrier Reef, were estimated to provide over $7 billion per annum of economic value to the Australian economy, and that is just one of our many natural coastal attractions that is at risk. Regrettably, despite existing measures, pest species are already established in Australia, with species such as the European Shore Crab and Asian Bagged Mussel, identifed in some coastal locations. Variable hydrodynamic fow in niche areas provides biofouling susceptibility Below the surface, biofoul on a vessels hull can pose a real threat to movement, niche areas of the vessel the environment. Hull niche areas such as the sea chest, rudder pin, are more susceptible to biofouling inlet pipes etc, can become heavily because of variable hydrodynamic fouled, and can enable the potential fow, or inadequate antifouling for invasive species to be brought protection. Although marine growth into territorial waters, despite the on a hull is often limited due to appearance of an otherwise clean consistent and stronger water hull.

28 Shipping Australia Limited Annual Review 2019 Within the region, the Ministry of safest and best option to operators. as environmental awareness and Primary Industries (MPI) in New Zealand, conscience grows, and to control risk Biofoul is not limited to commercial introduced new biofoul declaration from personal craft. requirements for vessels in 2018, vessels, and industry stakeholders must classifying vessels as high or low risk, recognise that appropriate regulation Global awareness of the threat from with potential for underwater inspection must address personal craft undertaking invasive species is growing, and new by divers upon arrival in NZ territorial international voyages, in addition to biofouling regulations will be introduced waters. The inherent costs being passed commercial vessels. This dramatically in Australasia, and other global onto the owners/charterers for relocation increases the challenge of efectively regions. Ultimately for commercial for cleaning or redeployment. monitoring and managing our vast vessels, compliance will be a necessity, coastline and its potential exposure supported by the impact that biofouling The NZ methodology is efective, to biosecurity risks. In recognition of has on drag, fuel consumption and however the scale of vessel movement the challenge, the UK’s Environmental operating costs. The development and nearly 36,000 kilometres of Audit Committee recently suggested a and availability of new technology Australian mainland coastline, will “citizens’ army” of volunteers to help such as ROV and cleaning techniques efectively limit the success of alongside tackle the growing threat of invasive will reduce operational cost of biofoul diver inspections for identifed high risk species. In Australia this could be management, enable compliance and vessels; purely from a cost, and resource a cost-efective resource to identify deliver cost saving from reduced fuel capability. and report pest species, providing use, delivering value to owners as well as In Australia, the Department of additional eyes on site, in particular the environment. Agriculture is currently reviewing potential changes to existing mandatory requirements for vessels arriving in Australian territorial waters, working in consideration of the International Maritime Organization (IMO) biofouling standards to protect the nation’s best interest. As a leading global marine survey organisation, commercial operator and trainer of the Blueye Pioneer underwater ROV, Inchcape are actively involved in the biofouling debate and working to provide solutions using new technology. Australian implementation of revised requirements is, in the authors opinion, a necessity. A similar model to NZ using a “self” declaration approach by the vessel owner to identify potential risk; delivers a quick awareness for both vessel and authorities, whilst aligning practice within the region. The new generation of compact, portable UW ROV’s, provides a new and unique capability for vessels, ports and authorities to identify the sub-surface condition of vessel, environment and infrastructure, and delivers a quick, cost efective, and safe alternative to putting divers in the water. Assuming that Australia applies a model similar to the NZ model - the challenge remains that if a vessel is physically inspected and identifed as high risk, there are serious limitations as to how and where in-water cleaning can occur in Australian waters. Only a couple of vendors are currently approved to provide “in water” hull or niche cleaning solutions in Australia, using new technology to collect the waste product; or undertaking niche cleans in a designated location where waste material poses minimal risk. With options in the region being limited, maintenance and implementation of efective biofouling Using UW ROV’s delivers a quick, safe and cost efective alternative to putting divers management plans currently remains the in the water

Shipping Australia Limited Annual Review 2019 29 SAL VOTING MEMBER UPDATES Mediterranean Shipping Company

A modern, green and efcient feet

By JAMES GRANVILLE, national marketing manager, MSC Mediterranean Shipping Company

Size isn’t everything, but it helps. bigger ships is to increase efciency been launched in 2019 include MSC by reducing the energy needed to Gulsun, MSC Leni, MSC Samar, MSC The next generation of ships will transport each container, lowering Isabella and MSC Mina. make the MSC feet more efcient both costs and CO2 emissions. This and minimise emissions, bring Looking ahead, the UN IMO has benefts to business, customers and helps protect the environment and laid out ambitious policy targets to the environment. ensures MSC is ahead of the curve in CO2, and other greenhouse gas meeting new regulatory requirements. emissions in the coming decades, The newbuilds arriving in MSC’s The 23,000+ TEU new builds will and the industry needs signifcant feet will replace some older, smaller advancements in technology, have extensive reefer capacity, and vessels, and they have many research and development in order to because they are expected to replace new features, which will improve achieve the goals of the second half a signifcant number of 13,000 efciency. Due for delivery in of the century. 2019 and 2020, they show MSC’s and 14,000 TEU vessels, will not commitment to maintaining a necessarily increase MSC’s overall Retroftting the feet to cut CO2 modern, green, efcient and safe capacity. emissions feet. Newbuild vessels of the 23,000+ As well as bringing in newer vessels, One reason for continuing to invest in TEU capacity that have already MSC has also been upgrading the existing feet of owned and operated ships to the latest standards of safety and fuel efciency, in a programme that started in 2011, considerably reducing CO2 emissions. MSC has retroftted more than 250 ships with energy-saving technologies, including a specially designed bulbous bow, lighter and more efcient propellers, and new rudders designed to reduce drag. Hulls are treated with a silicon-based anti-fouling coating to minimise friction, the need for underwater cleaning and the risk of spread of invasive species. At the same time, ship management centres retroft main propulsion engines to make them more efcient. Complying with IMO 2020 MSC has been preparing for years for the IMO 2020 regulation on sulphur content of fuel. Our feet

30 Shipping Australia Limited Annual Review 2019 will use compliant low-sulphur fuel, we are making to our feet and its each year for its customers can be and MSC has been explaining this in fuel supply is in excess of $2 billion transported around the world without the formula for our Bunker Recovery a year. passing through this Arctic corridor. Charge (BRC) to clients since 2018. Mr Diego Aponte, President & CEO The BRC gives shippers the option to MSC rules out Arctic exploration on of MSC Group, stated in October, identify and pass on any increasing environmental concerns “As a responsible company with a cost of shipping fuel through the In further commitments to the longstanding nautical heritage and supply chain. environment, earlier this year MSC passion for the sea, MSC fnds the At the same time, MSC has prudently decided not to use the Arctic as a disappearance of Arctic ice to be invested in EGCS (more commonly new short cut between northern profoundly disturbing. Every drop known as ‘scrubbers’) for a signifcant Europe and Asia and instead in the oceans is precious and our portion of its owned feet, in order to focused on improving environmental industry should focus its eforts on ensure that we cross the regulations performance on existing global trade limiting environmental emissions and 01 January 2020 deadline, with routes. protecting the marine environment minimal disruption. The Northern Sea Route lies entirely across existing trade routes”. MSC is committed to contributing to in Arctic waters and has been trialed A surge in container shipping trafc global eforts in order to reduce ship by other shipping lines seeking to in the Arctic could damage air quality emissions and fully supports the UN take advantage of melting ice from and endanger the biodiversity of IMO ‘s work in this area. At the same global warming. MSC is convinced untouched marine habitats – a risk time, the costs of the various changes that the 21 million containers moved MSC is not willing to take.

Shipping Australia Limited Annual Review 2019 31 SAL VOTING MEMBER UPDATES Wallenius Wilhelmsen Ocean

Increasing complexity in the shipping industry! Could digitalisation be used more efectively?

By Captain SUNIL DHOWAN, head, Port and Cargo Operations Oceania, Wallenius Wilhelmsen Ocean

Shipping has seen continuous change managers. authority round the globe knows the status over the years. This is defnitely very Global challenges like security, environment, of certifcation and compliance on board. positive, and a lot of progress has been biosecurity and safety standards, have This will save the masters and their ofcers made in the vessel design, equipment now taken a major focus, and industry has flling in the same information multiple times and in digitalisation, on the ships and to constantly add more workload to meet during a voyage. ashore. the regulatory requirements introduced to Political boundaries should be for political Wallenius Wilhelmsen has brought oversees manage these challenges. issues. When it comes to a common cause goods to the Australian market for 125 Every action on board has a process and related to security, safety, quarantine, years, starting with wool, and over the years requires logging the activity. There are no environmental and other common issues, shifting to cars, trucks, farming and mining less than 25 Log books or more, that are to regulatory authorities should align on equipment. WWO operates about 130 be flled on board for various activities. requirements and share information for the ships globally, and every year the company best safe interest of all. has close to 90 vessels calling Australia, Are we putting too much paperwork on the Where global common maritime issues are making in total almost 400 port calls. vessels? being dealt with, organisations like IMO As we progress over the years, the When digitalisation was being introduced, could take a lead and try and get alignment it was supposed to create a paperless complexity in the maritime industry amongst diferent countries, collecting data, society, but now there has to be a physical has increased. There have been more and sharing it on a common platform. requirements from various authorities to printout of everything on the ships, in case gather information from vessels, agents, the computer gets a virus and everything is Though technology has advanced, the owners, charterers on various forms, to wiped of. number of maritime incidents has not reduced. Is this due to the fact people on satisfy the authorities of vessel compliance. Paperwork and checklists are on the rise, to board are focussing on other administration Regulatory requirements are certainly improve the safety management system on work, rather than navigation and required to ensure there is no loophole board. On the contrary, vessels are more maintenance? Something to think about! which could lead to a higher maritime risk engaged in flling checklists and permits, or incident. leaving very little time for watch keepers We have much better tools and equipment Whilst progress is being made in the to focus on navigation and practical safety now, but we need to speed up using digitalisation feld, it seems that various maintenance. digitalisation efectively, to reduce the maritime regulatory authorities in diferent One regulation sets in and then another administrative burden on vessels and States and countries around the world are new one starts, creating another form for let them focus on their key roles. This working in silos to gather similar information reporting. will reduce maritime incidents, and in every port. There is certainly a need to environmental pollution. Amongst all the above, every port prior simplify and more importantly, standardise to arrival requires various forms to be A single report with minimum and only the information being collated and flled in, which are quite extensive. The relevant data input from a vessel, which collected. airline industry has reduced the checklist can be augmented digitally with information Digitalisation therefore needs to be items from 26 to 3 prior landing, whereas already ashore, serves multiple regulatory implemented efectively, in a manner that the shipping industry has increased the authorities to achieve the desired enhances and improves visibility, saves checklist items from 10 to 30+, and it keeps information, could be a good start! time, and improves efciency, both on increasing with every review. This needs an The sentiments conveyed here are after board and ashore. urgent review to consolidate and simplify discussing with several masters and agents, Shipping is a 24/7, 365 day industry, where the requirements, along with big data and they all are in complete favour of ships at sea are always manned (so far) and integration. regulations, as safety is paramount in this there is always someone at the end of the All vessel inspection and certifcation should industry, but wish for better, aligned digital phone ashore, who can be contacted. The be available ashore for the regulatory management which can enhance efciency. Maritime industry will be more efcient and authorities in a common database. Once There is a need to leverage technology and safer, if we only seek relevant and targeted inspections are done by surveyors, they data integration to simplify the compliances information from seafarers and their should update the system, so every required.

32 Shipping Australia Limited Annual Review 2019 Shipping Australia Limited Annual Review 2019 33 COMMONWEALTH AGENCIES Minister for Agriculture

Safeguarding our biosecurity – strength in collaboration

By Senator the Honorable BRIDGET MCKENZIE, Minister for Agriculture

Shipping is vital to Australia, carrying jobs that help generate our $5.3 billion system to deal efectively with pests and 99 per cent of our export volume to the domestic pork industry. diseases arriving daily on the hulls and world and reinforcing our status as an decks of vessels, not just in the imported To ensure Australia remains ASF-free, ocean-bound trading continent. our Government is prioritising biosecurity product they carry. Our ports and airports are also the and increasing inspections of people, Australia’s pest and disease free status frontline in an increasingly costly battle cargo and mail, arriving from countries will only be supported by the combined to ensure Australia remains a haven from afected by the disease. We are investing eforts of governments, industry and pests and diseases that if unchecked in research and new technologies that will the community, to counter risks. For would wreak havoc on our environment, improve our ability to detect and target example, the vehicle importer afected by economy and ambition to grow agriculture risks, while simultaneously speeding Heath snails worked with Government on cargo and passenger clearance times. to a $100 billion sector in a decade. a plan to re-export around 900 cars, while A well-resourced biosecurity system is all For people and mail, we’ve joined with working to prevent a repeat. New Zealand in a world-frst to trial that shields our communities and regions The Department of Agriculture has high-tech 3D x-ray machines capable from an outbreak that would be expensive consulted widely with freight forwarders, to control and harmful to our international of quickly scanning in high-resolution and building algorithms to automatically importers, ports, stevedores, shipping and reputation as a source of exceptional detect high risk food and plant products. customs brokers, as well as agriculture food, produce and wine. and resource frms, taking advice about In the port environment, we’re working Rigorous border protections in October how best to share the rising cost of on underwater drones to manage led to the turning back of cargo vessels biosecurity verifcation, risk mitigation and marine pests for the shipping and cargo after exotic Heath snails—a pest that enforcement. The work of the Biosecurity sector, in the difcult below-the-water feeds on important crops including lupins, Imports Levy Industry Steering Committee port environment and exploring the clover, wheat, barley and fruit trees—were provided options for consideration and technology to manage hitchhiking pests will inform our next steps. discovered by biosecurity ofcers in or contaminants on shipping containers. vehicles imported from Europe. With efective collaboration, and using a New scent lures will train detector dogs staged and considered approach, we can Eradication wasn’t an option, so my to snif out cargo pests, like brown streamline our biosecurity procedures, department directed the vehicle importer marmorated stink bugs (BMSB)—a small while upholding the security of the to remove 900 luxury cars from Australian pest the size of a fve cent coin that could territory to protect our biosecurity status do signifcant damage to Australia’s $9 system. Your input will be essential to and through it, the broader economy. billion horticulture sector. that process that the Department of Agriculture will lead. Similarly, African swine fever’s (ASF) No vessel movement or commodity can march through Asia as far as Timor Leste, be guaranteed as risk-free. There are This approach will safeguard the broader and the heavy impact it has had on global about 80,000 diferent import pathways, operation of our national biosecurity pig numbers and food supply chains, is each with its own risk profle, depending system. The benefts for our agricultural a reminder of the value a world-leading where the vessel comes from, what it’s exports, our rural and urban communities, biosecurity system provides us all, as carrying, how it is carried and where it our businesses, our environment and trade and travel pathways grow ever is going within Australia. We need to do our national lifestyle, easily outweigh the busier. ASF endangers 36,000 Australian more to equitably fund the biosecurity impost.

34 Shipping Australia Limited Annual Review 2019

COMMONWEALTH AGENCIES Department of Agriculture and Water Resources

A number of travellers to Australia had their The VSPS places a greater onus on vessel visas cancelled recently for breaching our operators to complete risk mitigation and biosecurity laws and were refused entry to contingency plans, as well as individual the country. Several arrived with a range vessel reports, before their vessels arrive of undeclared food, including up to 4.6 in Australian waters. This provides an kilograms of uncooked pork, which could alternate clearance pathway for vessels carry ASF, a disease that is wreaking havoc during the BMSB risk season, and removes on pig production across the world. the need for us to undertake detailed inspections of those vessels—making the We also recently turned away fve vessels entry process much faster. carrying imported vehicles, after exotic snails were found on board. And in the Two shipping lines covering 120 vessels 2018–19 BMSB season, we directed three have now been approved under this vessels that posed signifcant biosecurity scheme, with a further fve lines with risks to leave Australian waters. applications pending. Our biosecurity system is an important Taking a deep dive into managing marine national asset and we need to protect it. biosecurity risk A sustainable biosecurity system for A trial of underwater drones is continuing Australia in Tasmania, managed by the Tasmanian By LYN O’CONNELL, Department of Primary Industries, Parks, deputy secretary, Australian Resourcing this system is a challenge, and Water and Environment. This project is governments cannot do it alone. Government Department of supported by a $200,000 investment from Agriculture Biosecurity risks will only increase with the Australian Government. the volume of cargo entering Australia The feet of Modifed Remotely Operated expected to double between 2015 and Underwater Vehicles (ROVs) are operated 2030, and the rate at which pests and by a pilot on the surface. They are used to diseases are spreading throughout the identify marine pests that can hitch a ride A stronger word. We need a more sustainable on the hulls of boats or in ballast water. funding model to ensure we strike the right balance between the need to protect our There are plans to install a number of biosecurity agricultural industries and environment, and additional features in the ROVs. Including facilitate trade. high resolution video cameras, live streaming, sonar and sample collection system The challenge is to deliver a system devices. that keeps pace with modern regulatory practice and responds to the changing Depending on the outcome of the trial, we trade and biosecurity environment. may look to introduce ROVs to our pest It’s the perennial quest—protecting inspections at other ports and terminals In addition to our long-term plans for a our border while keeping a close eye around the country. strong and sustainable biosecurity system, on emerging and imminent threats. we continue to manage our daily operations SEE.SECURE.REPORT: a simple call to From managing the risk of the brown and explore business improvements. action marmorated stink bug (BMSB) to African The cargo and shipping community swine fever (ASF), the department has I have previously highlighted some of plays an important role on the frontline, never been busier. the new technologies we are exploring, including 3D X-rays, new sensing against exotic pests and diseases entering Our biosecurity system supports our way equipment and robotic systems for Australia. With the amount of cargo arriving of life—including $60 billion in agricultural automated processing and document from overseas, we need industry to help production, $49 billion in agricultural assessment. Other approaches being identify and report potential biosecurity exports and our $42 billion inbound tourism trialled include a new vessel assurance threats. industry. All vital contributors to jobs and scheme and the use of underwater drones. We’re spreading the SEE.SECURE. growth, particularly in regional and rural Vessel Seasonal Pest Scheme: REPORT. message among approved Australia. arrangement (AA) holders and workers partnering with industry to manage at AA sites, to promote the actions they The biosecurity risks are real, and the BMSB risk can take to detect and, more importantly, potential efects are far-reaching and long- Seasonal pest inspections on roll-on/ respond to biosecurity risks. These include term. If people ignore biosecurity, they risk roll-of vessels are the fnal checkpoint for securing the goods, closing container our pest and disease free status and our detecting pests. And the cooperation of doors, not moving cargo and reporting reputation for delivering world class, clean vessel operators is critical. suspected risks to us as soon as possible. and green produce. In response to your calls to improve our Watch our latest SEE.SECURE.REPORT. This is part of the reason why we’re inspection approach during the BMSB video at agriculture.gov.au/approved- implementing and enforcing a stronger season, we started to trial a Vessel arrangements and help us to pass the compliance stance. Seasonal Pest Scheme (VSPS) this season. message on.

36 Shipping Australia Limited Annual Review 2019 COMMONWEALTH AGENCIES Department of Home Afairs - Aviation and Maritime Security

Continuing the path to stronger maritime security

By VANESSA HOLBEN, frst assistant secretary, Aviation and Maritime Security, Department of Home Afairs

The year of 2019 has seen a wide In July 2019, we welcomed a screening ofcers. These changes range of activities take place aimed range of changes to the Maritime are expected to improve and at further strengthening security at Transport and Ofshore Facilities standardise the performance of Australia’s ports, and ensuring safe Security Regulations 2003. Changes people working in this role. and secure trade across Australia. include clarifcations in relation to Finally, AMS is in the initial stages of The Aviation and Maritime Security the licensing of maritime security engaging with industry on the security Division (AMS) within the Home guards, codifying long-standing settings in relation to cruise ships in Afairs Portfolio collaborates with policy advice provided to industry, Australia. The review will take into industry to deliver a cohesive and removing the requirement account current and emerging threats approach to maritime security, for maritime security plans to be and international best practice. It will which appropriately manages audited by both internal and external acknowledge the need for security potential risks to the security of auditors. These amendments clarify measures to be well-targeted, the Australian port and shipping existing obligations and removed practically achievable, and enable industry. administrative burdens, allowing tourism and trade. industry to focus on achieving Since joining AMS in April 2019, I maritime security outcomes. We thank all of our industry have gained a signifcant appreciation stakeholders for their collaboration for the complexities of the port and The Transport Security Amendment and engagement with us throughout shipping industry and its contribution (Serious Crime) Bill, introduced into the year and look forward to working to the Australian economy. It is vital Commonwealth Parliament in late closely with you again into 2020 and that we protect these industries with 2019, aims to prevent individuals beyond. efective and proportionate security who pose a criminal risk or have a measures which enable trade and serious criminal record, from holding For more information, contact: tourism to fourish. I look forward a maritime security identifcation [email protected] to collaborating further with industry card and gaining access to secure or 1300 791 581. stakeholders into the future to maritime transport infrastructure. strengthen these shared interests. These proposed changes, along with changes to the MSIC cards AMS worked with industry and introduced earlier in the year, will AusCheck to strengthen the maritime enhance the Australian Government’s security identifcation card (MSIC) ability to disrupt and hinder serious scheme. The updated design and criminal gangs or syndicates from security features introduced in May transporting and supplying illicit 2019 make the card easier to verify, drugs and weapons. harder to replicate and better protect the card holder’s identity. These AMS has continued to work features included a larger passport closely with industry partners on quality photo, larger font and updated the introduction of new training security features. and accreditation requirements for

Shipping Australia Limited Annual Review 2019 37 MARITIME SAFETY Australian Maritime Safety Authority

tragic and transformative, etched into shipping and respond to ship sourced Australian yachting psyche. That was 21 marine pollution. years ago but we remember it. In June 2018, 81 shipping containers were Rescues in the remote parts of our lost overboard from the YM Efciency, expansive search and rescue region 30 kilometres of the coast of Newcastle. continue to be challenging, including more The legacy of broken shipping containers recent high profle incidents like the rescue and their contents polluting the marine of solo yachtsman, Abhilash Tomy, deep in environment has been left for us to deal the Indian Ocean in September 2018. with, and salvage operations to clean-up 2018 DCN SHIPPING & MARITIME Tomy was competing in the Golden Globe the mess left behind are expected to begin yacht race when his yacht Thuriya rolled in early in 2020. INDUSTRY AWARDS rough weather and dismasted, he sustained For shipping more generally, one of the a serious back injury. A multi-national biggest challenges in 2020 will be the rescue ensued, coordinated by AMSA, transition to low sulphur fuel, a process some 3400 kilometres west of Perth. which started more than a decade ago. FREIGHT Tomy was rescued four days later by the In 2008, the International Maritime French Fisheries Patrol Vessel Osiris, which Organization (IMO) adopted amendments was tasked again by AMSA to rescue a to the International Convention for the FORWARDER OF second solo yachtsman from the Golden Prevention of Pollution from Ships, known Globe yacht race, just hours later. to us as MARPOL. Among other things, the changes set a global limit of 0.50 per cent Our mission – And of course, there was the 2014 rescue sulphur content in ship fuel oil, efective THE YEAR of 52 expeditioners from the Russian from 1 January 2020. research vessel Akademik Shokalskiy, which safe and clean had been locked in Antarctic ice for ten Lowering sulphur air emissions is important days, a logistical nightmare. for sustainable shipping and public health, particularly for people working around busy seas, and We have been coordinating search and LINKING AUSTRALIA TO ports. rescues in Australia for nearly three decades. We have been working closely with THE WORLD AND THE saving lives Australian shipping and petroleum Shifting gears to one of our newer industries over the past few years to help regulatory responsibilities, in 2018 we raise awareness of the changes on the way, WORLD TO AUSTRALIA By MICK KINLEY, chief executive fnalised the transition for setting consistent and to provide an opportunity to discuss ofcer, Australian Maritime Safety national standards and delivering potential impacts. Authority certifcation services for all commercial vessels in Australia. This engagement also ensures that Australia’s position on this issue at the IMPORTS That followed a complex transition from six IMO is informed by the views of Australian It has been a year of evolution for the State regulation systems to one national stakeholders, Australian and State/Territory Australian Maritime Safety Authority, the system. In the early transitional years, we EXPORTS governments. culmination of years of work towards a had a grainy picture of the many industries national reform of the major transport which use vessels in their operations, the Once implemented, the revised sulphur regulators in Australia. people who work in them and the unique limit will be a huge step forward in the DOOR-TO-DOOR Nearly three decades have passed since safety challenges they face. environmental sustainability of shipping. However, our work on reducing emissions our organisation was founded under its Over the past year that picture has come More than 100 Offices Worldwide does not end there. own Act of Parliament, and over time our into better focus, but more work needs to responsibilities in the maritime space have be done. The reliability of historical incident The next step is to address greenhouse gas Over 1400 Ports expanded dramatically. data was variable and has left us without emissions from shipping. The world has Our mission connects them all - safe and the necessary evidence to determine taken the frst step down that path, with Covering 31 Countries clean seas, saving lives. Many industries, and address operational safety risks at a the adoption of the initial Greenhouse Gas businesses and people rely on safe granular level, unending grandfathering Strategy by the IMO in 2018. Achieving Shipping to & from Sydney/Brisbane shipping and safe, clean seas. It is a arrangements are exempting some older a reduction in greenhouse gas emissions mission that we live and breathe here at vessels from complying with modern from shipping of 50 per cent by 2050, Melbourne/Fremantle/Adelaide AMSA. Many of us were mariners in former safety standards, and jurisdictional overlap compared to 2008 levels, is going to require lives and we understand that livelihoods with State workplace health and safety a sustained efort by all parties starting and lives are intrinsically connected to the regulations are all ongoing challenges. now. BY SEA OR AIR ocean. However, we are already seeing tangible Globally we are making progress towards a We are the national agency responsible for safety outcomes as we work with higher more environmentally sustainable shipping WE'RE YOU'RE TEAM coordinating maritime and aviation search risk areas, such as the fshing dory sector, industry, for the betterment of the planet. and rescue, including some of history’s and continually running safety management We are all intrinsically connected to the TO GET IT THERE most iconic rescues. workshops for commercial vessel operators ocean and it is our shared responsibility in around the country. The 1998 Sydney to Hobart yacht race, partnership with industries, big and small, Contact us for your most which saw 55 sailors rescued and six From 13 metre fshing vessels to 300 domestic and international, to ensure we lives lost after the feet sailed into a storm metre bulk carriers, we also regulate both have safe and clean seas for many years to in Bass Strait, would be one of the most Australian and international merchant come. competitive rates & service c u s t s e r v @ g l o b e l i n k . n e t . a u 38 Shipping Australia Limited Annual Review 2019 WWW.GLOBELINK.COM.AU 22001188 D DCCNN S SHHIPIPPPININGG & & M MAARRITITIMIMEE ININDDUUSSTTRRYY A AWWAARRDDSS FFRREEIGIGHHTT FFOORRWWAARRDDEERR O OFF TTHHEE Y YEEAARR LLININKKININGG A AUUSSTTRRAALLIAIA T TOO TTHHEE W WOORRLLDD A ANNDD T THHEE WWOORRLLDD T TOO A AUUSSTTRRAALLIAIA IIMMPPOORRTTSS EEXXPPOORRTTSS DDOOOORR--TTOO--DDOOOORR MMoroer et htahna n1 0100 0O Offfifciecse sW Worolrdlwdwidied e

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Delivering transport safety

By GREG HOOD, chief commissioner, Australian Transport Safety Bureau

2019 marks the 20th anniversary of the establishment of the Australian Transport Safety Bureau (ATSB) as Australia’s national transport safety investigator. The ATSB was formed on 1 July 1999, with the amalgamation of the Marine Accident Investigation Unit, the Bureau of Air Safety Investigation, and elements of the Federal Ofce of Road Safety, and the establishment of a new rail safety investigation capability. The Bureau’s remit, then, as now, was to undertake independent “no blame” investigations into transport safety accidents and incidents to prevent future accidents, and to conduct transport safety research, data analysis and education. Island in the Torres Strait to Lizard Island, The ATSB also found the vessel’s ECDIS In those 20 years, the ATSB has south-east of Cape Melville, Roebuck Bay’s was not updated to the latest International become renowned internationally for its passage plan was amended, with its route Hydrographic Organization (IHO) standards, independence, technical capabilities and inadvertently plotted over Henry Reef in and lacked the enhanced safety features of quality of its transport safety investigations Great Barrier Reef, Queensland. a new presentation library. across the marine, rail and aviation modes With the introduction of ECDIS as the of transport. The ship’s ECDIS identifed the reef as a danger to the planned route, however, sole means of marine navigation and the And so, as chief commissioner at the the crew did not identify the danger replacement of paper charts, the grounding time of our agency’s 20th anniversary, I either visually or by using ECDIS. The was an opportunity for the ATSB to explore am immensely proud to be leading the vessel continued on the amended route any potential safety impact of ECDIS in a real-world operational environment. organisation. I take pride in the ATSB’s and grounded on Henry Reef just after world-class technical and research midnight. There were no reported injuries This investigation involved interviews with capabilities, but most importantly, I take or oil pollution, but the vessel sustained Australian Border Force ofcers, crew and great pride in the qualities and capabilities substantial damage. shore staf and hydrographers from the of our people. Australian Hydrographic Service and the The ATSB found the crew’s ability to check It is the qualities and capabilities of our ECDIS manufacturer. Extensive ECDIS the amended route was limited, as their people that give the ATSB the capability analysis was also carried out, as were to conduct world-leading marine safety training was not efective in preparing them various ECDIS simulations and testing. investigations and reports, none more so for the operational use of ECDIS. As a result of the investigation, the ATSB than our ground-breaking investigation into Our investigation therefore highlighted that has highlighted that the use of point the use of ECDIS (electronic chart display the safe and efective use of ECDIS as the features in electronic navigational charts and information systems), as part of our primary means of navigation, depends on to represent areas of relatively signifcant investigation into the grounding of the operators being thoroughly familiar with size on the earth’s surface is likely to Australian Border Force Cutter Roebuck the operation, functionality, capabilities and increase the risk of the hazard posed by Bay, in September 2017. limitations of the specifc equipment in use such features being misinterpreted, and While planning a passage from Saibai on board their vessel. potentially reduce the efectiveness of

40 Shipping Australia Limited Annual Review 2019 ECDIS safety checking functions. the ATSB investigates to determine its down and told to return to the berth after circumstances, contributing and other the Orient Centaur was steady in the South Further, and while this did not specifcally factors, including any safety issues, and contribute to the grounding of Roebuck Channel. to encourage relevant safety action – and Bay, the investigation showed that the not to assign blame or liability. The aim of Now, with the tide falling, there was a implementation of ECDIS introduced all ATSB investigations is to prevent similar signifcant risk that the ship’s structural unintended risks to marine navigation. accidents and incidents in the future, integrity would be compromised. The pilots The ATSB recognises that ECDIS and through the continued free fow of safety estimated they had about 30 minutes to electronic navigational charts are an information for the purposes of improving refoat the ship. A general call was issued essential tool for navigation with many safety in the future, and not assigning to all tugs for assistance. safety benefts; however, operating crew blame. Three tugs were mobilised to the assistance need to be aware that navigating with The Roebuck Bay investigation was one of the grounded Orient Centaur and, under ECDIS is fundamentally diferent from of seven marine fnal investigation reports the guidance of the harbour pilots, were navigation with paper charts. the ATSB has released in 2019, thus far. successfully used to refoat the ship. Orient By allowing operators to view and change Our other investigations have highlighted a Centaur was subsequently towed out of the an electronic navigational chart to a larger range of safety issues for the industry, from channel to an anchorage. compilation scale, ECDIS can make contacts with wharfs, to serious injuries to single point features representing rocks, crewmembers during ship maintenance Surveys conducted over the following days wrecks and other obstructions, appear and repairs, to port risk assessments, the identifed that the ship had not sustained progressively smaller as the scale is latter highlighted by our investigation into any damage. changed, creating the impression it is clear the grounding of mini cap-size bulk carrier, The investigation found that in pre-trial of a ship’s route or further away than it Orient Centaur. simulations, the risks associated with actually is. In this incident, the fully laden Orient engine failure during departure were only The ATSB has reminded regulators, Centaur was transiting the South Channel considered up to when a ship had entered manufacturers, hydrographic ofces and out of the port of Weipa, Queensland, under the channel. other concerned parties that their ultimate the conduct of harbour pilots as part of a As a result, the tugs were not in goal must be to eliminate the signifcant trial introduction of mini cape-size vessels attendance to assist if propulsion was lost. risks with the use of ECDIS, or at least to the port. Additionally, the tug masters had not been reduce them to an acceptable level in terms Just over an hour after departing from the trained in the specifcs of escort towage, of navigational safety. wharf, the ship’s main engine shut down nor in emergency response. Our investigation into the grounding due to a loss of water from a cracked of Roebuck Bay demonstrates that engine cooling component, and propulsion The ATSB investigation into this occurrence was lost. Without the ability to steer, the highlighted the importance of considering ship grounded on the northern batter of potential hazards from end to end, in order the channel. The stern then slowly swung to provide the best opportunity to manage across the channel and grounded on the safety risk. southern batter, efectively blocking the As the Roebuck Bay and Orient channel. Centaur investigations highlight, ATSB The hazards associated with engine failure investigations play a central role in ensuring had been considered as part of the port’s Australia benefts from a safe and efcient risk assessment for the introduction of mini marine transport system. cape-sizes and were to be mitigated by having tugs in attendance. Those hazards In our 20th year, as in our frst, the had only been considered, however, up to ATSB will always give priority to safety the point at which a ship had entered the investigations that have the potential to South Channel. As a result, on the day of deliver the greatest public beneft through the occurrence, the tugs had been stood improvements to transport safety. Orient Centaur grounded departing Weipa

Shipping Australia Limited Annual Review 2019 41 STATE TRANSPORT AND LOGISTICS Queensland

Queensland maritime developments – Transport and Main Roads 2018–19

By ANGUS MITCHELL, general manager, Maritime Safety Queensland, Department of Transport and Main Roads

With upwards of 7400 kilometres Supporting our ports and shipping create up to 800 new and indirect of mainland coastline to monitor lanes construction jobs over a fve-year and protect, and ships accessing period, and 2700 jobs after the Governments looking to promote 15 trading ports (with many of construction phase. The dredging economic growth will inevitably works have been completed and wharf those steaming through the target the ports that enable the vast upgrades to accommodate the larger environmentally sensitive Great majority of their trade. Queensland, ships are due for completion in April Barrier Reef), it almost goes without with the most decentralised ports 2020. saying that 2018–19 was another network in Australia, is no exception. busy year for Transport and Main The 2018–19 fnancial year saw Around 350 kilometres south, the Roads (TMR). signifcant developmental activities in Townsville Channel Upgrade Project is Queensland’s ports, and continuing the frst stage of the 30 year Townsville investment in activities that enhance Port Expansion. This $193 million the safety of shipping, while protecting project involves widening the channel the marine environment. to accommodate vessels up to 300 metres in length (currently the channel North Queensland was a particular can only accommodate vessels up to focus, with the ports of Cairns 238 metres). and Townsville investing over $300 million between them, into The Townsville project is jointly infrastructure upgrades, as signifcant funded by the Queensland and projects moved out of the planning Australian Governments, who are each and approval phases, and into contributing $75 million, with the Port implementation. of Townsville Limited contributing the balance. Early works have started, In Cairns, the $127 million Cairns while reclamation works are expected Shipping Development Project involves to commence in 2020. The channel widening and deepening the existing upgrade will create up to 120 jobs in port channel to allow larger cruise Townsville during construction, support ships to access and berth at the Cairns 245 indirect jobs across the State, and Cruise Liner Terminal. The number of be completed in 2023. cruise ships able to visit the port will increase, thereby positioning the Far Providing support to the ports North Queensland region to welcome network and the recreational more tourists. boating community, Maritime Safety Queensland (MSQ) undertook The project will also enable the future hydrographic surveys in the ports expansion of the HMAS Cairns naval of Weipa and Amrun, as well as base, while improving the efciency of Ross River and Black Weir, after bulk cargo shipping operations. record-breaking rains in February Overall, the project is expected to 2019. Crews also worked to rebuild

42 Shipping Australia Limited Annual Review 2019 destroyed beacons and re-position simulator is one means by which community and develop future buoys, and arranged for the removal the Government intends to prevent solutions to the problem. of sunken vessels, which posed an shipping incidents. Smartship By 30 June 2019, 180 derelict immediate hazard to mariners. Australia, located near Brisbane vessels had been removed from the Airport, has now become the Managing and mitigating risks maritime simulator of choice in waterways by TMR and compliance partners at a cost of $3.3 million, While much of this investment was Australia, providing port development while 137 vessels were either directed at ensuring shipping can and optimisation services, modelling removed by their owners or made access our ports safely, Government infrastructure design, developing port seaworthy. must also focus on mitigating the procedures, pilotage training and possibility of a major shipping profciency testing. The past year Growth continues incident occurring. saw the provision of more services than ever before. These were just some of the MSQ continued to provide 24/7 highlights of a fnancial year in which vessel trafc services, monitoring Tackling abandoned vessels the value of Queensland’s exports and assisting international and local In a move unique to Queensland rose from $74 billion to $87 billion. trading ships to safely navigate within this country, in July 2018, the In the maritime sector, this was through the Torres Strait and Great Queensland Government responded refected in ship movements totalling Barrier Reef, ports and coastal to a growing problem along the 16,534 (a one per cent increase waterways. Looking forward, 2019 Queensland shoreline – namely the over 2017–18), the number of ship through early 2020 will see the growing number of unseaworthy voyages through the Great Barrier roll-out of SAAB’s maritime control vessels left abandoned by their Reef VTS area climbing to 11,954 (up system into our VTS centres – a $36 owners to pose navigation and 2.3 per cent) and the number of Port million investment into improving our pollution risks. VTS movements (non-piloted vessels) real-time monitoring and interaction rising to 21,976 (up 6.9 per cent). The Government announced a ‘war capabilities with shipping, to reduce on wrecks’ and dedicated a four-year, We confdently expect the upward the potential for incidents. $20 million fghting fund to fund the trajectory to continue, fuelled in Meanwhile, continuing enhancement removal of wrecks and established no small part by the infrastructure of TMR’s Smartship Australia a taskforce to consult with the investments outlined above.

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Shipping Australia Limited Annual Review 2019 43 PORTS Ports Australia

New partnerships and new challenges – another busy year

By MIKE GALLACHER, chief executive ofcer, Ports Australia

Ports Australia’s 2018 inclusion member ports around Australia and Cocktail Party at Parliament House in in SAL’s Annual Review was a potentially, the Pacifc. Since then, six October, provided a chance for port commentary on the change facing our ports from across the Pacifc (Samoa, leaders to network with parliamentary company, sector and world. This year Fiji, Cook Islands, Solomon Islands, leaders and fgures from various is no diferent, with progression on together with Lyttleton and Napier in trade, transport and maritime security last year, along with new challenges New Zealand) have joined Ports Australia agencies. The event saw our members to tackle. With concentrated focus on as external associate members. We’re connecting with politicians from all sides, a sustainable future for the industry, excited for our members’ new ability to such as Hon Michael McCormack MP forming new alliances, and constant share knowledge and experience across (Deputy Prime Minister and Minister for networking, there’s been plenty to our region, which is vital as it rapidly Infrastructure, Transport and Regional keep the team at Ports Australia and grows, both in freight and population. As Development), Hon Alan Tudge MP our members busy. we continue building bridges between (Minister for Population, Cities and Urban ports and various service providers on We discussed last year our plan for home soil, we look forward to bringing Infrastructure), Deputy Leader of the ALP the release of a sustainability hub and our overseas partners and their unique Richard Marles, together with Senators report. Ports and a Sustainable Australia industry knowledge to the table. Pauline Hanson and Jacqui Lambie, to was published in June through close name a few. collaboration with our membership, Together with SAL and other supply which explores the important work chain representatives, our voice was October saw the announcement of our they’re doing, as well as a projection loud last year during the biosecurity levy new chair of Ports Australia’s Board of for what needs to be done. Our sector establishment. This coming year, we Directors. I’d like to take an opportunity has the chance to be a leader in the must ensure reform on coastal shipping to frstly congratulate new chair, battle against the many challenges of legislation maximises the potential of Stewart Lammin, CEO of Flinders Port sustainability – it’s essential we stay on our Blue Highway and the opportunity to Holdings, who – with over three decades the front foot and fght for change that create jobs around the country. Figures experience in the sector – leaves no will afect businesses, local communities show that while Australian freight has doubt that he is the man to lead the and the world, into the future. The efort grown, the shipping industry’s share of Board and management team into the must be tackled holistically, considering that freight has dropped signifcantly. future. I’d also like to acknowledge environment, climate and energy, resilient We plan on continuing our input to and congratulate outgoing chair, Grant infrastructure, governance and ethics, the conversation happening amongst Gilfllan, who has been an industry leader corporate citizenship, and the ever- government, so we can shift those for decades, having invested time and important health, safety and security. numbers and refect the true potential efort into Port Authority of New South of our industry as an efcient and As part of a mission to better connect our Wales, Ports Australia, and the sector. sustainable way to move goods around region’s maritime industry, Ports Australia the country. The next year will see me and my was fortunate to attend the 44th Pacifc team working harder than ever with Maritime Transport Alliance Conference, We understand that making plans relating earlier this year in Samoa. Our Policy to sustainability and coastal shipping a our members and partners across the director, Ash Sinha, took the chance to reality, everyone must be on board. The industry, to ensure that the potential of discuss issues such as the IMO 2020 low intensity of our advocacy push has only Australia’s shipping industry becomes sulphur fuel regulatory impacts, building increased in passion over the past twelve a reality. The population, freight task, of resilient infrastructure in the face of months – we want to see a future where and call for a sustainable future, will only climate change and Ports Australia’s there’s ports and there’s friends of ports, continue to grow in our country, and we online ports community network that inclusive of industry leaders, government can’t wait for our industry to be the one works to improve the operations of ofcials and everyone in between. Our growing with it.

44 Shipping Australia Limited Annual Review 2019 Tasmania’s tradelink to the world

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

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

TASPORTS.COM.AUShipping Australia Limited Annual Review 2019 45

DNC_Full_Page Generic.indd 1 19/12/2018 2:44:16 PM PORTS - NEW SOUTH WALES Port Authority of New South Wales

A new era for the ports of New South Wales

By PHILIP HOLLIDAY, chief executive ofcer and director, Port Authority of New South Wales

Major infrastructure developments import, storage and distribution facility. the release of our brochure – Cruise Sydney across cruise terminals and commercial & NSW, Along the Blue Highway - we’re Due to the depletion of local sand supplies, ports will deliver a long-lasting economic looking to bring the economic benefts of the Multi-User Facility will meet inner return for New South Wales. cruise tourism to other destinations. Sydney’s increasing demand for concrete Port Authority of New South Wales ensured and construction materials, supporting Cruise capacity constraints remain a reality the safe navigation of over six thousand infrastructure projects such as Sydney in Sydney, and addressing this is critical to commercial vessels through our ports, Metro, WestConnex and Western Harbour ensure we maintain and grow New South during the 2018/19 fnancial year. Tunnel, over the next decade. Wales’ position as Australia’s top cruise Our marine pilots performed over 10,500 By importing materials by ship, truck destination. transfers by cutter vessel and helicopter, movements on roads in the Sydney region A detailed business case is now underway and our marine operations teams also will be substantially reduced — a single to investigate cruise capacity, industry responded to more than 3,000 maritime vessel can replace between 1,100-1,500 demand and assess potential sites for a incidents across our ports, from oil spills truckloads of material. third cruise terminal in port Botany. and pollution, to frefghting, emergency A new era for cruise in New South Wales towage and vessel assists. The detailed business case will recommend The cruise industry creates $5.2 billion site options within the study area, Our employees work 24/7 to keep our for the national economy and New South provide high-level terminal concepts and ports safe and secure, and their diligence, Wales is the home of cruise in Australia. commercial models for procuring, funding professionalism and preparedness is a The 2018/19 cruise season saw 354 ship and operating a potential terminal. Port credit to us all. visits to six of New South Wales’ ports, Authority and New South Wales Treasury The next generation generating a total expenditure of $3.3 billion will submit the detailed business case for the State (CLIA 2019 Australia Economic to the New South Wales Government for Late last year, we launched a new cadet Impact Assessment). consideration in 2020. programme to support the next generation of seafarers and help build the Australian While Sydney is placed as the number one An acknowledgment maritime skill base. cruise destination in Australia, regional New Finally, I’d like to take the opportunity to South Wales is also enjoying the benefts Cadets on the two year programme gain recognise the leadership of Grant Gilfllan, of a booming cruise sector. There were valuable seagoing experience on merchant who stepped down as chief executive 31 ship visits to our ports in Newcastle, vessels, alongside mentoring from Port ofcer of Port Authority, earlier this year, Eden and Port Kembla, last cruise season, Authority maritime professionals. Our after 12 years at the helm. plus four visits to Batemans Bay and Trial intention is to help cadets progress Bay. This is a 35 per cent increase over the to become deck ofcers on merchant Grant led Port Authority through signifcant previous year and generated $25 million for ships and ultimately achieve their master changes during his tenure, including regional New South Wales. qualifcation, afording them options to fulfl amalgamating New South Wales’ maritime leadership roles ashore. Leading this boom was the port of Eden, three former port corporations into the an increasingly popular destination for organisation we have today. The future of Sydney Harbour’s working Australian cruisers. This year we opened port Building on the work undertaken by Grant, the new Eden Cruise Wharf — a $44 million together we will continue to keep the ports Glebe Island, in Sydney Harbour, has been project to extend the port’s wharf, to allow of New South Wales, safe, secure and open a vital maritime supply route for over 100 vessels over 300 metres in length to berth in to the world. years. The port’s berths provide a low-cost, the port, for the frst time. low-impact and sustainable way to bring dry We’ve also been working to bring cruise to bulk materials into the city. other regional ports in New South Wales. Port Authority of New South Wales manages the navigation, security and operational safety needs of Now, the role of this crucial asset will Ships have visited both Trial Bay and commercial shipping in Sydney Harbour, Port Botany, continue following the approval of a new Batemans Bay in the past year and, with Newcastle Harbour, Port Kembla, Eden and Yamba.

46 Shipping Australia Limited Annual Review 2019 Keeping the ports of NSW safe, secure and open to the world Sydney Harbour | Port Botany | Newcastle Harbour | Port Kembla | Port of Eden | Port of Yamba

www.portauthoritynsw.com.au Follow us @por tauthoritynsw

Port Authority cutter crew Port Botany, New South Wales Shipping Australia Limited Annual Review 2019 47 PORTS - NEW SOUTH WALES Port Botany/Port Kembla

Securing New South Wales’ trade future

By MARIKA CALFAS, chief executive ofcer, NSW Ports

As Port Botany celebrates the 40th have over 500 vessels registered facilities will act as logistics hubs on anniversary of its ofcial opening, in the scheme, which supports the the corridor to the growing Western we are focussed on sustainably World Ports Sustainability Program. Sydney and regional areas. supporting the trade needs of New We also welcomed the largest ships It was only ftting that we rounded South Wales for the next 40 years to ever call in Australia, with two out the year by celebrating the 40th and beyond. 9,400 TEU vessels, the Maersk anniversary of the opening of Port In the next 40 years, New South Skarstind and MSC Elma, arriving at Botany. In just four short decades, Wales’ population is forecast to Port Botany in July, and a 9500 TEU the port has cemented its position grow to 12.5 million, which includes vessel, the MSC Le Havre, arriving as Australia’s premier port, and an extra 3.8 million people living in in November. With deep and short with ongoing investment in supply Greater Sydney alone. Ensuring shipping channels, today Port Botany chain efciency, sustainability and our port supply chains are able to is capable of servicing vessels larger a continued focus on optimising efciently cater for the growing trade than 12,000 TEUs. port and terminal capacity, is well needs to support this population equipped to support the State’s In August, we released our 2019 growth is therefore crucial to the growing needs for the next 40 years Sustainability Plan and Hub (https:// economic vitality of the State. and beyond. sustainability.nswports.com.au/), to NSW Ports is responsible for great feedback. That said, port planning requires managing New South Wales’ key long-term thinking, and we are A major focus is increasing rail trade gateways of Port Botany and already looking to the future when mode share to meet our long-term Port Kembla, and two intermodal Port Botany nears capacity. Port goal of moving 3 million TEUs on hubs at Enfeld Intermodal Logistics Kembla will be the State’s second rail by 2045. We have a signifcant Centre and Cooks River Intermodal container port, being close to growing programme of works underway, population and business centres of Terminal. Together, these assets play including investment in on-dock rail Western Sydney, the aerotropolis and a critical social and economic role, infrastructure capacity at Port Botany. south-west Sydney. delivering $4.4 billion to New South Stage 1 of this investment ($190 Wales’ Gross State Product annually million) will double Port Botany’s on- and supporting around 30,000 jobs. dock rail capacity to 1.5 million TEUs, Our vision is to be a world class and will be complete by 2023. port and logistics manager driving We have also made signifcant sustainable growth, and throughout progress on our $250 million 2019 we were pleased to achieve development of intermodal several milestones in support of this operations and warehousing goal. at Enfeld Intermodal Logistics We started the year with the launch of Centre. The intermodal terminal, our Environmental Shipping Incentive, operated by LINX Cargo Care, and becoming the frst and only Australian four warehouses, are now fully port to fnancially reward ships with operational and we have another two higher standards of environmental warehouse precincts currently under emissions performance (SOx, NOx, construction. Along with Cooks River Guests at Port Botany 40th anniversary CO2) calling at our ports. We now and other intermodal terminals, these breakfast cruise

48 Shipping Australia Limited Annual Review 2019 We keep Australia’s economy moving

NSW Ports manages the key trade gateways that connect the people and businesses of NSW with the world.

We hold long term leases to manage Port Botany, Port Kembla, Enfield Intermodal Logistics Centre and Cooks River Intermodal Terminal through which millions of tonnes of freight are imported and exported to domestic and international markets each year.

We play a critical social and economic role within NSW: • Contributing $4.4 billion to the economy • Supporting approximately 30,000 jobs

www.nswports.com.au

Shipping Australia Limited Annual Review 2019 49 PORTS - NEW SOUTH WALES Newcastle

A year in review

By CRAIG CARMODY, chief executive ofce, Port of Newcastle

alike, can make their own choice as to the But 2019 also saw new opportunities, best supply chain solution for them. including the awarding of Critical State Signifcant Infrastructure status to EPIK’s It was a productive year for the port proposed LNG import terminal project. This on many fronts, signifcant for the dual helps diversify the port but also underpins celebration of 220 years of commercial many port customers with reliable and shipping, and 160 years of maintenance Talking to customers is the most insightful competitive gas supply. part of my job. 2019 was no diferent. In dredging to support safe and reliable regional New South Wales and southern operations of the shipping channel. The Port is also pleased to be increasing capacity, handling efciency, safety and Queensland, whether talking with exporters, 2019 also brought with it a new logo, environmental performance with its new particularly farmers, or importers, councils website and branding. This is not just a $35 million bulk ship unloader, due to and regional logistics providers, the fresh coat of paint. We very much see our begin operating in 2020. Meanwhile, we message was the same: sort out the supply role as custodians of the Hunter region’s celebrated with industry, with the arrival of chain when business is quiet. Droughts are most critical asset and have set our the frst LR1 and LR2 class fuel tankers this a tough time for all, but exactly when you sights on creating a safe, sustainable and year. This was the product of a four-year sort out the supply chain, so it is humming environmentally and socially responsible industry collaboration. in time for the next bumper harvest. I also port for the future. had the opportunity to meet with many of It was also wonderful to complete a One aspect of creating such a port, is about the world’s top shipping lines. Whether $1.2 million restoration of the Carrington our sustainability. Port of Newcastle this meeting a farmer or a top-tier shipping line, Hydraulic Engine House façade and year became a leader in Australia and New the themes were remarkably similar: there creation of a new public plaza. Built in Zealand, as the frst to join the EcoPorts is noticeable appetite for competition and 1877, the facility housed the frst large- Sustainable Logistics Chain. We are now improved efciency. scale hydraulic power system in Australia. benchmarked against 120 major ports Port power generation has come a long We are taking industry feedback on board across Europe, Asia, North America and way in 142 years, but so too has the port. as we progress the $1.8 billion Newcastle South America. It is exciting to see other As we look to 2020, we do so with an eye Multi-purpose Deepwater Terminal project. ports, including Geelong, join the network much further into the future. We want With a groundswell of industry and political in 2019. We hope others in Australia will to leave a positive legacy for the Hunter support for the project, I am confdent that join us. region and assist New South Wales to be a we will soon be in a position to provide a competitive economy that trades efciently superior option for customers. Our vision also requires the port to diversify. As the largest port on the east coast of with the world. It is a privilege to be a part 2019 was also signifcant, as people in key Australia, we have much to keep us busy. of this transformative efort. roles fnally acknowledged that vessels are growing in size and would visit Australia if they could be accommodated. Those up to 9,500 TEU are fnding their way here now. However, as most of us know, new Panamax vessels of 10,000 to 14,000 TEU are now the workhorses of container shipping. As I have been saying for some time, Australia lags behind the rest of the world in having the necessary infrastructure to efciently handle these larger vessels. Of course, most of this can be addressed with signifcant investment in new infrastructure. Subject to the removal of the $100 per TEU targeted tax on containers through Newcastle, PON is ready to invest $1.8 billion in the very type of infrastructure needed to address these capacity constraints. With a level playing feld, shipping lines and regional businesses

50 Shipping Australia Limited Annual Review 2019 A PORT OF OPPORTUNITY

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

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

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

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

striving every day to create a safe, sustainable and environmentally and socially responsible Port that realises its potential.

+61 2 4908 8200 Level 4, 251 Wharf Road NEWCASTLE NSW 2300 [email protected] portofnewcastle.com.au Shipping Australia Limited Annual Review 2019 51 PORTS - QUEENSLAND Central Queensland

Future proofng our shared prosperity

By CRAIG WALKER, acting chief executive ofcer, Gladstone Ports Corporation

Gladstone Ports Corporation (GPC) is on the verge of unprecedented opportunity – continuing globalisation, energy transitions and new technology – we are readying Queensland to take full advantage of the future.

Vessel berthed at RG Tanna Coal Terminal, Port of Gladstone

Preparing for the next 50 years, we the continued growth of trade are looking to unlock the economic and planning is a vital part of that potential of the regions in which process. we operate, with a strong focus At GPC, our processes are driven by on intergenerational planning and a clear, strategic direction. We’ve facilitating trade growth for our three developed 50 year Precinct Outlooks port precincts. for the port of Bundaberg, port of As Australia’s premiere multi- Rockhampton, Port Central and commodity port, the key to our Fisherman’s Landing in Gladstone, success at GPC is our forward-focus, enabling the corporation the foresight allowing us to take full advantage of to create the right infrastructure, emerging trades. It is critical that our opportunities and connections to ports are developed in a systematic address future domestic trends and and sustainable manner, to facilitate global shifts.

52 Shipping Australia Limited Annual Review 2019 Our Precinct Outlooks ensure tactical and other new, value-added products. safely to open water by our Marine sustainability objectives, whilst Pilot Service. We are resolute in our commitment utilising our historical value, coupled to future-proof our operations for We remain focussed on the important with future demands. generations to come. priorities of growing jobs, trade and The Draft Port of Bundaberg our regions prosperity into the future, Putting the spotlight on our recent Precinct Outlook was released in while ensuring our operations remain successes, we released our 2018- September, and has been available sustainable and continue protecting 19 Annual Report in September, for consultation with stakeholders to our greatest ecological asset, the showcasing record throughput ensure we have a shared vision for Great Barrier Reef. the future of the precinct. tonnages, strong revenue and solid proftability, exceeding our forecasted We have a strong focus on GPC will release the Draft Outlooks dividend. improving our robust environmental for the port of Rockhampton, port management systems to not just Our three ports handled a record Central and Fisherman’s Landing, in meet, but exceed our obligations to 124.8 million tonne (Mt) of cargo, 4.6 early 2020. protect the environment. Mt higher than the 2017-18 fnancial As key multi-commodity precincts year, and we saw an increase in GPC’s sustainability journey will in Queensland, all three port regions vessel movements, from 1,911 to continue in 2020, as we work towards hold trade connections to growing 1,940. future-proofng our operations and economies. reducing our footprint. In addition to our record tonnage, our Globally, the focus of trade is fnancial performance was the best We understand the important role we shifting from the G7 countries to on record, demonstrating the strength play as the gateway for Australian the Emerging 7 (E7) countries – of our operations. trade, jobs and prosperity, and China, India, Brazil, Mexico, Russia, we are confdent our strategy of Record levels of coal, LNG and a Indonesia and Turkey – and these commodity diversifcation and our markets are opening new trade doubling of container trade, represent ability to leverage our competitive opportunities for our regions. the hallmarks of our recent success. advantages – our deep water harbour, Growing urbanisation and prosperity In early October, we celebrated with landholdings and proximity to Asia in Asia, combined with rising food Shell’s QCG business, as their 500th – will enable Queensland to take full security, will also drive demand for cargo sailed out of port aboard the advantage of the unprecedented agriculture, natural resources, tourism Gaslog Gladstone, proudly escorted opportunities which lay ahead.

Positioning Queensland for a strong future GPC has a unique competitive advantage due to our proximity to Asia, Gladstone Port’s existing operations and deep water harbour, large landholdings with State Development Area approvals and ports in Bundaberg and Rockhampton. Gladstone Ports Corporation gpcl.com.au | 1800 243 GPC Growth, prosperity, community.

Shipping Australia Limited Annual Review 2019 53 Port of Brisbane is building the Brisbane International Cruise Terminal (BICT) – a world-class facility that will transform cruising out of Brisbane.

Located in Pinkenba at the mouth of the With over 190 cruise ships booked for the Brisbane River and only 15 minutes’ drive 2020/21 cruise season, we’re getting ready to Brisbane Airport, it has easy access to to welcome hundreds of thousands of south-east Queensland’s major tourist passengers through the doors later this year. regions, including the Gold and Sunshine Coasts and Brisbane’s CBD.

The new terminal is open to all visiting cruise lines and will welcome baseporting, turnaround and day calls – opening up with For more information visit new possibilities and new itineraries for www.portbris.com.au/cruise passengers and cruise lines. and follow Port of Brisbane on social media.

DELIVERING FOR QUEENSLAND NOW

$177 million 245 jobs supported, investment by Port of Brisbane on average, during each year of construction

AND FOR DECADES TO COME Within 20 years, potentially tripling Brisbane’s cruise industry to:

support 3,750 jobs bring 766,260 contribute $1.3 billion visitors annually in net expenditure into the Brisbane economy 54 Shipping Australia Limited Annual Review 2019 Shipping Australia Limited Annual Review 2019 55 PORTS - QUEENSLAND Far North Queensland

Ports North dredging project defes the odds

By RUSSELL BEER, chairman, Ports North

The prospect of pumping soft clays vessels safe passage into the port of for cargo carriers. The increased and silts from the seabed through Cairns. depth of the channel enables bulk eight kilometres of steel pipeline, cargo carriers to carry larger loads In particular, the deeper and wider which traverses beach front, and opens up the port for more channel would allow for cruise ships mangroves and cane felds, before opportunities in cargo trafc. being deposited in a deep water- up to 300 metres in length to berth flled pit on land, was not without at the Cairns Cruise Liner Terminal, As an added beneft to Australia’s challenges. which is one of the top four cruise defence, the deeper channel access ship destinations in the country. The to HMAS Cairns also created the Take, for example, the hundreds and hundreds of compliance regulations upgrade would also bring benefts potential for the Royal Australian and conditions added to the approval of one of the most detailed environmental impact statements for a dredging campaign in Australia. But the Cairns Shipping Development Project went ahead after more than six years of deliberations by State, Federal and Local governments and Ports North - the owner operator of nine Far North Queensland ports, including Cairns. This has been an incredible efort by our team. We pioneered a method which was a clever solution for Cairns, after legislation was introduced banning of-shore placement of capital dredge material. To see the dredging completed on budget and on time and with minimal impact to the community and our stunning tropical environment, is really something to celebrate. The $127 million project involved removing up to 1 million cubic metres of dredge spoil from the Cairns shipping channel, to allow larger Trailing suction hopper dredge, Balder R

56 Shipping Australia Limited Annual Review 2019 way, for the next 30 years. It is complemented by a Sustainability Strategy to assess economic, environmental and community issues, as well as our policies, strategies and governance against the United Nations Sustainable Development Goals. Cairns Port, together with Thursday Island, Karumba, Skardon River, Mourilyan, Burketown, Cooktown and Quintell Beach, are the hubs for provision of goods and services for communities across Far North Queensland. The key ports handle industries involving bulk shipments of sugar, molasses, silica sand, zinc, magnetite, bauxite, fuel, fertiliser, log product, livestock, project cargo and general cargo. Ports North continue to champion Backhoe dredger, Woomera the case for the development of Far North Queensland as a supply hub and source of goods and services to Navy’s largest ships to berth in the successful start-up opportunity other areas of Australia, as well as Cairns, as well as large foreign navy for the Metro Mining bauxite export to neighbouring Asian and Pacifc ships. operation at the port of Skardon regions. We are also in a great River; and is working with United Furthermore, the project relocates position in a defence capacity, to take Petroleum to develop a proposal for a the Main Swing Basin positioned the region forward. So we watch fuel terminal import facility at the port adjacent to HMAS Cairns, which with great expectation, the efects the of Mourilyan. Cairns Shipping Development Project would enable a potential future and the new expanded channel will expansion of HMAS Cairns into the Underlying all of this is our Ports have across our industries, into the inner harbour. Master Planning Project, which future. began this year. This will inform land The positive impact this development use, infrastructure and operational will have on the Cairns economy decisions in an economic and cannot be overstated – from creating For more information visit: environmentally sustainable www.portsnorth.com.au jobs through to boosting business, multiple sectors and thousands of locals will reap the benefts of a transformed Cairns Port. Now that the dredging campaign is complete, we have begun the fnal phase of the Cairns Shipping Development Project, which is to upgrade wharves 1-6 at the cruise shipping precinct to cater for the larger ships coming in. Most of these wharves are more than a century old, so again, we faced particular challenges to ensure the heritage values remain. The Cairns Shipping Development Project is one of a number of highlights for Ports North in the past year, across its nine ports, which have made up the blue highway between remote communities and national and international markets, for more than a century. Across regional ports, Ports North has successfully negotiated with New Century Resources to re-establish trans-shipping operations through the port of Karumba; negotiated Steel pipeline to transport dredge material to on-land site

Shipping Australia Limited Annual Review 2019 57 PORTS - QUEENSLAND North Queensland

NQBP supports regional economic growth

By NICOLAS FERTIN, chief executive ofcer, North Queensland Bulk Ports Corporation

During the past year, North Queensland Drive, expected to be completed in early breakthrough environmental work. We Bulk Ports Corporation (NQBP) 2020, will provide a second access way are extremely proud that the programme continued to work with stakeholders, to the port of Mackay, improving port was recognised among 155 applicants customers and communities to support operational efciencies and emergency by a panel of leaders from universities regional economic growth through its access, while also creating future land across Australia. The partnership sets an business activities. The NQBP team was development opportunities. example to the maritime industry around continuing to drive a strong business the world, of how well-managed ports and In addition, construction has commenced performance, while remaining committed critical coastal habitats can coexist for on a large laydown and washdown area that to their own safety and the safety of the preservation of iconic natural assets will modernise the facilitation of washing others. and signifcant economic assets for future down and storing imported goods subject generations. The safety of our employees, contractors, to biosecurity controls. NQBP’s innovative approach to sustainably port users and members of the public The port of Mackay has played a vital role in managing sediment from dredging within remains our daily priority. We are proud connecting central Queensland to the rest its ports culminated in two substantial of the contribution we make to the State of the world since it was ofcially opened 80 achievements in 2019, with essential of Queensland through employment, ship years ago. We were proud to celebrate the dredging completed at both the port of movements, profts and dividends. port’s 80th anniversary in August this year. Weipa and the port of Hay Point. In the 2018/19 fnancial year, NQBP The port plays an integral part in At the port of Hay Point, NQBP successfully facilitated trade movement worth $40 Queensland’s prosperity – growth in trade obtained dredging permits from the Great billion, delivered almost $10 million to the through the port has the potential to help Barrier Reef Marine Park Authority, which State of Queensland via its shareholders, facilitate broader economic growth in carried conditions to ensure the protection and supported 30,000 regional jobs through regional Queensland. direct and indirect employment. of the marine environment within the While trade facilitation and diversifcation World Heritage Area. During the dredging Total trade through NQBP’s four ports at is a major focus for NQBP, minimising the programme, completed in May 2019, water Mackay, Hay Point, Abbot Point and Weipa environmental impact of our operations clarity was kept within natural ranges and was 177.5 million tonnes. On the back of and stewardship of the Great Barrier Reef there were no efects on turbidity levels. these positive trade and fnancial results, World Heritage Area is core to how we do Additionally, we’re proud of the success of we will continue to evolve to accommodate business. market changes and customer needs. Our the dredging completed at the port of Weipa recent investments in the port of Mackay With three ports in the Great Barrier Reef in mid-July 2019, delivered with additional are an example of adaptions to new World Heritage Area, NQBP has maintained environmental control measures, innovative markets, making Mackay a gateway to a strong focus on environmental research commercial solutions and contractual connecting central Queensland to the world. and innovation. NQBP undertakes a range arrangements. of long-term environmental monitoring at Throughout the year, the team at NQBP A dedicated strategy to attract new each of its ports. breakbulk trade to the port of Mackay, demonstrated its dedication to operating its ports in balance with its customers, coupled with signifcant investments in port During the year, the organisation launched communities and the environment, while infrastructure, came to fruition in July 2018, its second online environmental dashboard, also striving to deliver a fnancial beneft to when the frst ever roll-on roll-of (RORO) which shares data from seagrass monitoring the State of Queensland. vessel was welcomed into port. and complements the air quality dashboard launched the previous year. In 2020, we will continue to work with our Since then, more than ten RORO vessels The recent national recognition of NQBP stakeholders, customers and communities have loaded and unloaded mining and and James Cook University’s integrated to ensure we meet their needs and agriculture equipment at Mackay, destined marine monitoring programme at the expectations, and our ports continue to for central Queensland. Business Higher Education Round Table contribute to growth in sustainable trade, A $2.9 million extension of Edmund Case (BHERT) Awards was a testament to the creating real and lasting value.

58 Shipping Australia Limited Annual Review 2019 Driving Northern Australia’s Major Projects

Diverse cargo handling facilities offering a world of opportunities

Break Bulk & Project Cargo Specialists | HEAVY-LIFT | RO-RO | LO-LO | BARGE ACCESS | | PORTAINER & MOBILE HARBOUR CRANES |

+61 7 4781 1500 [email protected] www.townsvilleport.com.au Shipping Australia Limited Annual Review 2019 59 PORTS - QUEENSLAND North Queensland

Building for the future

By PORT OF TOWNSVILLE

Townsville port is a signifcant commercial, defence and cruise port that caters for a large variety of dry bulk, liquid bulk, break-bulk and containerised commodities, and continues to focus on growing and diversifying its trade base. Positive economic signs in the mining, manufacturing and renewable energy sectors are bringing renewed confdence in the economic outlook for the region, including mine developments in the North West Mineral Province and the Galilee Basin. Expansion of the existing zinc refnery, investigations for a number of other refneries and processing plants, battery manufacturing plants and renewable energy projects, are contributing to forecast growth in the port’s trade outlook. Agricultural exports are also set to be a growing market, with a number of Image: Port of Townsville new commodities being trialled. The frst quarter of the 2019/20 year has seen the frst exports of pumpkins The Port of Townsville is in the midst After a challenging past few years and rockmelons from the port of of great change as we move towards in North Queensland, trade volumes Townsville, together with the frst a programme of works to expand through Townsville port increased 4.7 export of frozen beef in over a decade. operations, improve efciencies and per cent on the previous year, largely Containerised legume export trials are enhance reliability for customers. driven by growth in minerals exports. planned for December, with signifcant This was despite the unprecedented opportunities from large-scale dry and monsoonal fooding event earlier in irrigated cropping areas in the region. the year, which saw the Mount Isa to Improved container handling Townsville rail line closed for 12 weeks, infrastructure will facilitate more and devastation across communities in frequent and cost-competitive the region. container handling. A $40 million

Port of Townsville major infrastructure projects include: • The $193 million Channel Upgrade Project will widen the navigational channel to welcome larger ships, • A $48 million `Pit to Port’ common-user rail freight terminal, • A $30 million Crane and Cargo Terminal project at Berth 4, includes construction of a 1.6 hectare container terminal and a new ship-to-shore crane.

60 Shipping Australia Limited Annual Review 2019 Image: Port of Townsville upgrade of Berth 4 was recently Liebherr ship to shore crane, which will Heritage Area, is not something we take completed, doubling the capacity of the be operational on Berth 4, in December for granted. The Port is committed berth through larger and more efcient 2020. Berth 4 also ofers priority to to sustainable development and operations. A further $30 million is being container liners, so they meet their operations, with a comprehensive invested into a new container terminal, schedules, giving surety to importers and range of monitoring programmes and which will open early 2020, and a new exporters. sustainability initiatives, to ensure that The Port’s $1.6 billion, 30 year port the health of the bay and our surrounds development programme is taking shape, is protected and improved. with the frst major project, the $193 As Northern Australia’s largest million channel widening, now getting general cargo and container port, underway to cater to growing demand the Port of Townsville is investing in and expanding vessel sizes. The project the infrastructure, technologies and includes the widening of the existing navigation channels, the construction innovations to ensure we continue to of rock wall revetment ponds and drive economic development for North the creation of around 60 hectares Queensland. of land, through reclamation. The Queensland and Federal Governments are contributing $150 million towards the project, which will be completed in 2023. Cruise ship visitation continues to grow and will improve further when the channel is widened. Townsville will also hold the Australian Cruise Association Conference in 2020, bringing together leading national and international cruise executives, port authorities and tour operators. This growth is taking place against the backdrop of our unique position. The importance of our location in Cleveland Bay, in the Great Barrier Reef World

Image: Port of Townsville

Shipping Australia Limited Annual Review 2019 61 PORTS - SOUTH AUSTRALIA Flinders Ports

A landmark year

By STEWART LAMMIN, general manager, Flinders Ports Holdings

There are extensive works planned for Launch of Flinders Warehousing and Berths 18 to 20 at Inner Harbour in Port Distribution (FWD) Adelaide, with works commencing in 2020 In October, Flinders Ports Holdings to remediate and optimise serviceable successfully launched its new subsidiary, hardstand areas, which are used primarily Flinders Warehousing and Distribution for large break bulk cargoes. (FWD). The new company has recently Regional port developments commenced operations at Outer Harbor 2019 has been a landmark year for Flinders and is strategically placed, adjacent to Port Lincoln Ports Holdings. The company completed the Flinders Adelaide Container Terminal the Outer Harbor Channel Widening Project As owners and operators of six key regional (FACT). at Port Adelaide, launched signifcant ports in South Australia, Flinders Port FWD provides fully integrated land- upgrade works at some of its regional Holdings has also planned and commenced based supply chain services, including ports and expanded its operations in works on improving infrastructure in our warehousing, distribution and seamless warehousing and distribution. regional ports, including Port Lincoln, Port access to rail and road transportation Giles and Thevenard. Over the next fve Outer Harbor Channel Widening Project services. years, the company will invest between The dredging works for the Outer Harbor $15 and $18 million into the Port Lincoln The company has the capacity to handle Channel Widening Project was completed. wharf and facilities, including lighting and all cargo types, including out-of-gauge The project, which represented an $80 electrical upgrades, wharf remediation, cargo, standard containers and pallets, million investment by Flinders Ports, carpark redevelopment, the Parnkalla for long or short-term storage. The direct puts Port Adelaide on a level footing with Trail and other general infrastructure transfer of out-of-gauge cargo from FACT other container ports across the country. maintenance that will ensure the longevity to FWD will allow cargo to be unpacked, International dredging specialists, Boskalis, of this vital piece of infrastructure that without the need for road transport and carried out the dredging works with state- supports jobs in the region. Port Giles is associated permits for the frst move, and of-the-art trailing suction dredge (the also receiving some electrical and fender will signifcantly improve delivery times to Gateway), and the world’s largest backhoe upgrades. There has also been signifcant the fnal destination. investment in infrastructure at Port Lincoln dredge, the Magnor. The dredging works New rail spur at Flinders Adelaide to improve the ease of passengers were successful, and were efciently Container Terminal managed throughout the project, with boarding and disembarking from cruise environmental considerations a key priority ships. There has been a signifcant change to the intermodal infrastructure at the Flinders that informed operational activities. Thevenard Adelaide Container Terminal, with the The channel has been widened by 40 The Thevenard Jetty Restoration project completion of the new rail spur and the metres to allow the largest class of is well underway, with works having laying of additional hardstand. container vessels in the Australian trade to commenced in June this year, and is The intermodal facility operational footprint call at Port Adelaide, without restrictions. currently in the demolition and initial has efectively doubled, resulting in The project itself was a vital infrastructure reconstruction phase of the works. both increased operational capacity and Through to summer 2019/2020, the focus development for the State, as 99 per cent operational efciencies. of South Australian imports and exports will be on completion of the demolition by weight are transported to and from the of the older concrete slabs on the jetty, Looking ahead and the installation of new piles and steel State by sea. The container terminal is a The Flinders Port Holdings Group are supports, followed by the installation of vital contributor to the State, as it supports looking forward to another busy year in the new concrete decks. Flinders Ports more than 6,000 jobs. South Australian 2020. The group has already progressed has been working closely with port users exports through the port exceed $8 billion on its mission to be future focussed, to accommodate shipping requirements annually and imports, approximately via an ambitious 50-year masterplan. and to minimise disruptions to operations $6.5 billion. With the completion of the This planning process will incorporate a during the planned works. dredging, larger ships immediately began wide variety of economic, stakeholder, calling Port Adelaide, demonstrating the The project is on schedule, with full community, efciency and operational importance of widening the channel and restoration set for completion in late 2020. drivers. We will ask the questions that continuing to unlock vital import and export This is another important project to ensure we must, in order to ensure our planning opportunities for South Australia, and that this vital piece of infrastructure will processes can guide us in delivering for the securing the longevity of our tourism and continue to support regional jobs well into long-term health of South Australia and our trade industries. the future. business.

62 Shipping Australia Limited Annual Review 2019

South Australia’s leading port owner, operator and logistics specialist.

From ship to shore, road and rail, we can provide Ports Container Terminal Logistics 7 ports Gateway to South Australia Complete supply chains your complete Pilotage & transfers People safe and environment sound Customised solutions supply chain solution. Mooring Onsite container depot Road transport Draft surveys Direct rail links and road connections Warehousing Tide management to national highways Stevedoring Hydrographic services Competitive transit times

www.findersportholdings.com.au

Shipping Australia Limited Annual Review 2019 63 PORTS - VICTORIA Melbourne

Optimisation and innovation - the key to managing growth challenges

By Captain ARUN RAMPAL, marine manager, Port of Melbourne Maersk Skarstind, 9,472 TEU, squeezes under the Westgate bridge

The Port of Melbourne is a major In 2018, the port handled a record 3 Changes in the shipping market are business gateway for south-eastern million TEU in trade, and this volume driving demand for larger ships, which Australia, contributing 19,600 jobs and is forecast to grow to 8.9 million TEU in turn, infuences how our local supply $6 billion to the Victorian economy. It by 2050; at a rate of 3.5 per cent per chain works. Ship sizes are generally is the largest container, automotive annum. Victoria’s population growth getting bigger, while the macro-economic and general cargo port in Oceania. continues to be strong, providing conditions are volatile and uncertain. opportunities and a need for signifcant For ports to remain competitive, a fully infrastructure investment. It puts integrated plan that aligns with a long- pressure on infrastructure and planning term strategic need of the city, the State both at the port, and across Victoria. For and the nation is required. the past four years, more than 100,000 people annually, have come to live in Pressure on freight rates, together Melbourne and Victoria. with the impending compliance with

Simulation proved the feasibility of navigating large ships to Swanson dock

64 Shipping Australia Limited Annual Review 2019 Maersk Skarstind, 9,472 TEU, squeezes under the Westgate bridge

the IMO low sulphur requirements In July 2019, the frst Bosporus Max certifed to four international Standards in 2020, has seen further shipping class of vessel ‘Maersk Skarstind’ made (Quality: ISO 9001, Environment: ISO industry consolidation and increased its maiden voyage to Melbourne into the 14000, OHS: ISO 45001 and Asset the intensity to cascade larger ships Swanson Dock East Terminal, followed Management: ISO 55001). Port of onto the Australian trade routes. Rapid by ‘MSC Elma’ and ‘MSC Elodie’. Melbourne is the frst Australian change has the potential to disrupt Collaboration and innovation organisation to certify IMS to these four the port ecosystem globally, in terms standards concurrently. of productivity, risk management and Since 2016, the port has heavily governance. The Port of Melbourne invested in new technology. It includes Preparing for the future – a road map meteorological ocean forecast modelling, is meeting this challenge head-on by To enable growth in trade volumes hydrodynamics, wind, waves and embracing technological advancements and vessel sizes into the future, the and innovation. sediment transport analysis, vessel interaction studies, and building an Port of Melbourne has developed Port To enable future growth while working Integrated Port Model to maximise Development Strategy 2050 (2050 PDS), within constraints of ports, such as the capacity of the existing channel which sets a framework for managing topography, human-made (bridges), and berths. Port has undertaken an growth challenges in the next 30 years. environmental compliance, and extensive vessel simulation programmed, The 2050 PDS outlines critical projects regulatory requirements, a competitive with the support of Victorian Port to meet not just future demand, but port requires innovation to succeed. Corporation Melbourne and Port importantly to supplement efciency and Phillip Sea Pilots, at AMC Search At the beginning of 2019, it was by productivity. and Pivot Maritime. We conducted no means certain that the larger engineering structural assessments of A range of projects has been identifed container vessels could call at the Port all the key terminals’ infrastructure and to improve efciency and productivity of Melbourne. The challenges were dredging cost optimisation to minimise – including an active rail component. numerous. Ships are getting longer environmental footprint. Many of these projects are well advanced and wider, while berth and channel in the planning phase to enable timely infrastructure changes require long The successful vessel arrivals were commencement. Given the long lead lead times and are high cost. The due to a collaborative efort, and times for major infrastructure projects, Yarra River is not getting any wider, and timely engagement between the key the port will ensure project delivery is the Westgate Bridge has an air draft stakeholders were critical drivers that with minimal disruption to customers. restriction, and wider ships require enabled the port to manage this change. appropriate quay cranes outreach. The success of larger ships that called at While the arrival of the Bosporus-Max Regulatory approvals have substantial Melbourne this year, is a clear message vessels heralds a new era for the Port lead times and are extensive. to the industry that the Port of Melbourne of Melbourne, it is the frst step towards This year provided a turning point for the stands ready to accommodate the other classes of ships, and the port is port to accommodate big ships. The largest vessels servicing Australian ready to meet growth challenges today arrival of three Bosporus-Max vessels trade. The ongoing investment has and beyond 2050. (300 metre LOA x 48.2 metre beam) to enabled Port of Melbourne and VPCM to efectively analyse and validate future To view a short video of the arrival of the Melbourne in 2019, for the frst time Maersk Skarstind go to https://tinyurl. demonstrates how the port can innovate operations, to maximise the built assets and to clearly understand the risks and com/pom-maersk-skarstind to meet the challenge of accepting larger mitigations required. container ships, enabling maximisation To download the Port of built assets. Such innovation also Underpinning this success is an Development Strategy 2050 go to assists the port to plan for future growth. Integrated Management System(IMS) www.portofmelbourne.com Simulation proved the feasibility of navigating large ships to Swanson dock

Shipping Australia Limited Annual Review 2019 65 PORTS - VICTORIA Melbourne

Enhancing navigation safety and shipping efciency in Melbourne

By RACHEL JOHNSON, chief executive ofcer, Victoria Ports Corporation (Melbourne)

Safe navigation in the port waters A key part of this challenge is the ability to vessels of 325 metres LOA being of the port of Melbourne is the top to accommodate the increasingly berthed, as well as “Bosphorusmax” priority for Victorian Ports Corporation larger container ships being deployed vessels of 300 metres LOA and 48.2 (Melbourne) (VPCM), and our worldwide. metres beam. challenge is to maintain safety while Since VPCM’s inception, we have been These trials are successful because meeting the evolving needs of the working closely with Port of Melbourne, of the close cooperation and intense commercial cargo operations of the the private organisation managing the work throughout the process, by all the port. port’s commercial operations, together parties involved. The programme is with marine pilots, stevedores, towage ongoing, as VPCM works to meet the operators and shipping lines, to assess needs of the industry. opportunities to accommodate these To enhance navigation safety for all vessels in Melbourne. vessels in Port Phillip, a project is well Simulations and computer-based underway to replace and upgrade the analyses are used to assess whether vessel trafc services (VTS) system these larger vessels can safely navigate covering port waters. Port Phillip Heads and berth in The geographical scope of the Melbourne. These assessments have innovative new system remains led to a series of staged trials, with unchanged from the current one. incremental draughts during 2018 and However, the specifcations provide for 2019. expansion as required, and the ability to The frst of the trials was the successful interface with future innovations as they berthing of OOCL Seoul at Webb Dock, become available. in August 2018. At 325 metres in length While the performance level of a overall (LOA) and with capacity for 8063 VTS system is mandated through TEU, this was the largest container ship international standards, the ability of to visit Melbourne to that date. Since the new system to take advantage then, more vessels of similar size have of features of the previously installed berthed at Webb Dock, the largest being advanced radars, will provide levels of 336 metres LOA. detection not previously attainable. In November 2018, the frst trial for The combination of larger vessels accommodating larger vessels in and an enhanced navigation safety Swanson Dock was undertaken, with system will enable cargo owners using MSC’s Archimidis. It was the largest Melbourne to access more competitive container vessel to visit the dock to that freight rates and improved efciency, date, with an LOA of 317.8 metrres and which will beneft not only exporters and a beam of 43.2 metres. Since then, importers but the industry and economy further simulations and trials have led as a whole.

66 Shipping Australia Limited Annual Review 2019 PORTS - VICTORIA Geelong/Hastings

Changing energy mix and Victoria’s regional ports

By STUART CHRISTIE, development manager, Victorian Regional Channels Authority

One of the most strident and Victoria currently has around 1,800 MW The Hydrogen Energy Supply Chain passionate public debates in 2019 has of operating wind farms, with 1,900 MW (HESC) is a world-frst pilot project been around the topic of ‘energy’. under construction and a further 1,700 to safely and efciently produce and MW having received planning approval. transport clean hydrogen from Victoria’s Energy demands, energy sources, Much of this development is centred Latrobe Valley to Japan. This will include energy policy, renewable energy and the around western Victoria. the world’s frst hydrogen vessel, moving reliability of energy supplies, have all kept hydrogen to Japan, which is scheduled to With signifcant volumes of wind farm energy discussions in the headlines, and be launched in December 2019. it’s an issue that ofers some exciting components being imported, this has opportunities for Victoria’s regional ports. created demand for support at both the Many of our strategic partners are already port of Portland and port of Geelong, looking forward, with Viva Energy recently Victorian Regional Channels Authority with shipments of tower sections, blades, launching its new very low sulphur fuel (VRCA) manages commercial navigation turbine heads and a number of large oil (VLSFO), developed to meet the in the port waters of Geelong and transformers. International Maritime Organisation’s Hastings. VRCA also oversees channel (IMO) new regulations on fuel sulphur Projected supply and demand imbalances management for the port of Portland content. and coordinates the Port Development for natural gas, in south eastern Strategy for the port of Geelong. Australia, have resulted in a number of These new regulations will limit the investigations into the importation of sulphur content in marine fuels to 0.5 Traditionally, energy has been a key liquifed natural gas and here again, is a per cent from the current level of 3.5 per trade through the ports of Geelong and potential opportunity for business growth cent, in a move to reduce sulphur oxide Hastings, for many years. It was back for our ports. emissions globally. Vessels worldwide will in 1958 when what was described as be required to comply by 1 January 2020. the frst super tanker – the 28,000 tonne In Victoria, AGL continues its investigation Velutina – entered the port of Geelong to into developing a gas import hub at the The introduction of the IMO’s new sulphur deliver crude oil to the then Shell refnery port of Hastings, utilising a moored ship cap on fuels is one of the most signifcant at Corio. at Crib Point jetty, a Floating Storage and events in the shipping industry since ships Regassifcation Unit (FSRU) to inject gas started transitioning to fuel oil from coal, Operated by Viva Energy since August into the network. A new 57 kilometre long over 100 years ago. 2014, the Geelong refnery has now grown pipeline will be commissioned to connect Peter Mannion, VRCA’s new CEO (and its output to supply half of Victoria’s fuel Hastings into Victoria’s gas transmission former chair of Rightship Pty Ltd, and needs. network at a location east of Pakenham. general manager Fleet Operations and Across at Hastings, Exxon Mobil has Clearly, if this project gets the go-ahead, it Safety at Rio Tinto) is, together with our utilised hydrocarbons from Victoria’s would be a signifcant boost for Hastings. team, excited to see that energy linked Bass Straight for export of crude oil trade has a very strong future in the Already underway at Hastings is the and liquid petroleum gas (LPG), while regional Victorian ports now, in 2020 and construction by Kawasaki Heavy United Petroleum utilises Hastings for the beyond. Industries of a trial coal to hydrogen importation of gasoline and diesel into the plant, at Hastings. A newly constructed There is no doubt that our ports are Victorian market. liquefaction, storage and loading facility important enablers for Australia’s The continued growth and diversifcation will convert hydrogen gas (H2) to changing energy needs, and we need to of Australia’s energy needs and markets, liquefed hydrogen (LH2), using existing be agile and forward thinking enough to augur extremely well for Victoria’s regional commercial technology already in use make the most of these sustainable and ports of Geelong, Portland and Hastings. overseas. cost-efective opportunities.

Shipping Australia Limited Annual Review 2019 67 PORTS - WESTERN AUSTRALIA Mid West Strategic changes, opportunities and success

By ROCHELLE MACDONALD, chief executive ofcer, Mid West Ports Authority

A sustainable strategy reset, recognition of operational performance. The focus We are delivering on our commitment to maximisation opportunities and celebrating driving efciencies, working collaboratively unlocking the Mid West region by attracting our successes, have been the major and implementing the Western Australian new trade sectors, expanding existing themes for 2019 at Mid West Ports. Industry Participation Strategy and trade and investing in our infrastructure With the development of its 15 Year Aboriginal Procurement Policies. to provide reliability, capacity and future Strategic Plan, Mid West Ports Authority Procurement is managing the supplier planning of our port. Planned new trade has started their journey toward a base, and developing and maintaining long- has the potential to signifcantly increase sustainable future, in alignment with term relationships with those suppliers who both the volume and variety of minerals the United Nations Global Goals for will deliver value and alignment with MWPA exported through the port in the future. Sustainable Development. business strategies. Local procurement is key to developing the region in which we As Mid West Ports work to achieve This strategy reset has led to an operate. growth and development aspirations, it is organisational restructure, with a strong important that these goals are achieved focus on developing our people for the 2019 marked the 50th year of the Port whilst operating in balance with the future. It has enabled us to build capability Authority, with the Geraldton Port Authority environment and community expectations. across key areas in the business, with (GPA) having been established in 1969, 2019 focused on recruiting and establishing many opportunities created for internal after commencing operations in the 1890s a dedicated sustainability team. The candidates to grow and develop. as a single railway jetty. In 2014 GPA was team has been focused on ensuring rebranded Mid West Ports Authority. The the foundations for growth are strong. 2019 has seen the development of 50 year milestone was celebrated with a the Geraldton Port Master Plan and in Compliance assurance programmes have community open day, whereby some 1500 particular, the Port Maximisation Plan, been reviewed and improved, stakeholder local people attended a Community Hub which has enabled the port to identify how engagement has been invigorated and a and 450 took advantage of guided tours of much trade can be accommodated through sustainability strategy will be implemented the port by bus. the port within its current harbour footprint, in 2020, to ensure the strategic and port and what the constraints and opportunities Attracting cruise to Geraldton is a maximisation plans identify and realise are to development. This planning has also continued focus for the port, and we opportunities to improve performance helped inform the lifecycle asset planning recognise that working collaboratively with across the three pillars of sustainability - and investment for critical and high other Western Australian ports, to develop people, planet and proft. importance assets. our facilities to cater for cruise is a key component to our long-term success. The Looking forward to 2020, we celebrate 180 Implementation of Phase II of the Enterprise years since the maritime industry began Resource Planning software systems Port Master Plan has made consideration for a dedicated cruise berth, which would from Champion Bay, Geraldton. HMS continues, bringing safety, sustainability, Champion was the frst ship to anchor of human resources, asset management and facilitate visitors on and of the ship without our coast. Lead ore was the frst product operations into an integrated platform. having to transit through the MSIC zone, exported and the frst jetty was built in The focus of the project is to provide improving their experience and access 1857, a 244 metre railway jetty. the workforce with mobile applications whilst berthed in Geraldton. to complete everyday tasks, improving As one of the most diverse commodity While 2019 has been a year of efciencies on how business is conducted ports in Australia, we continue to build on transformation at Mid West Ports, 2020 and to provide contemporary reporting our base of diversifed trades. Stronger will focus on consolidation and delivery tools. commodity prices and a more favourable of strategy objectives, including taking The last 12 months has also seen a exchange rate for exporters resulted in a delivery of three new Svitzer tugs mid-year, refnement in our procurement procedures, slight increase in trade tonnage compared continuing to build community capacity where the function has been expanded to with 2017/18, with several major milestones through initiatives and engagement and create value from the supply base by not laid in the path to a stronger and brighter celebrating 180 years of the maritime only focusing on price, but also increasing future for the Mid West region. industry in Geraldton.

68 Shipping Australia Limited Annual Review 2019 Gateway to trade and tourism in regional Australia

Mid West Ports Authority has been overseeing safe, secure and effcient port and marine services in the Mid West region since 1969. MWPA manages one of WA’s most diverse operations in the Port of Geraldton, facilitating trade to 27 countries and the east coast of Australia

www.midwestports.com.au

Tel: 08 9964 0520 I PO Box 1856 I 298 Marine TerraceShipping I GERALDTON Australia Limited WA Annual 6531 Review 2019 69 PORTS - WESTERN AUSTRALIA The Pilbara

Facilitating trade in the Pilbara

By ROGER JOHNSTON, chief executive ofcer, Pilbara Ports Authority

Pilbara Ports Authority is the world’s In the 2018/2019 fnancial year, Pilbara Improvement Rate (PIR) levy. largest bulk export port authority, Ports Authority reported a total annual The frst PIR project was the Channel encompassing the ports of Ashburton, throughput of 697.2 million tonnes, of Marker Replacement Program, which Salt berth at the port of Dampier Dampier and Port Hedland. PPA which 513.3 million tonnes was through saw the replacement of 35 marine and CEO Roger Johnston outlines how the port of Port Hedland. Nearly 93 per three land-based navigation aids. The innovations across the ports support cent of throughput across the Authority’s project was completed in May 2019, the authority’s plans to drive trade ports is iron ore, accounting for nearly 80 under budget and ahead of schedule. growth. per cent of Australia’s iron ore exports. The Hedland Tower is the port of Port A series of major projects aiming to Hedland’s new $55.3 million operations increase throughput and ensure safe centre. The facility was ofcially opened and sustainable operations came to in July 2019, providing port users with completion at the port of Port Hedland world-class port infrastructure and in 2019. Three projects were funded state-of-the-art Vessel Trafc Services by port customers through the Port systems, equipment and emergency

Port of Port Hedland

70 Shipping Australia Limited Annual Review 2019 Salt berth at the port of Dampier response facilities that will steer the hub at Lumsden Point will facilitate port of Port Hedland, there are planned safe and efcient movement of vessels non-iron ore trade, including cattle and upgrades to the biosecurity area at the through the harbour for the next 50 lithium. The Authority welcomed its port of Dampier. years. frst roll-on/roll-of (RORO) vessel, Blue At the port of Ashburton, work began on Ridge Highway, as part of a broader The fnal PIR project was the $120 million a general cargo, multi-user facility, which project to become a frst point of entry Channel Risk and Optimisation Project, will facilitate new trade opportunities port for imports to the Pilbara. The when it starts to receive vessels in which was completed in September Blue Ridge Highway called at the port in 2019/20. 2019. The project introduced a refuge June 2019 to deliver a cargo of ofshore zone and emergency passing lane to piping. The RORO open vehicle deck In February 2019, legislation was passed the 42 kilometre unidirectional shipping design allowed the cargo to be unloaded in the Western Australian Parliament to channel, as well as removing high spots in less than two hours, compared to facilitate the transfer of fve Shipping and in the outer section of the channel, which non-RORO vessels, which can take up Pilotage Act 1967 ports in the Pilbara, allows port users to optimise tonnage on to 12 hours to unload by crane. Pilbara from the Department of Transport to their vessels. Ports Authority has upgraded biosecurity Pilbara Ports Authority. Due diligence The $32.5 million Berth 3 deck infrastructure at the port to prepare for is underway to facilitate the transfer of replacement project was port authority- increased shipments of containers, roll- these ports on a staggered, case-by- funded and updated the common user on/roll-of and breakbulk cargo. There case basis. is ongoing industry demand for imports facility, which is primarily used for the Pilbara Ports Authority also made of containerised trade and mining export of salt, and the import of fuels progress on the new greenfeld ports of equipment, support equipment and and general cargo. The project was Balla Balla, Cape Preston West, Cape parts. completed two months early and under Preston East, Urala and Anketell. The budget. At the port of Dampier, iron ore is the port of Balla Balla is planned as a multi- In September 2019, at the completion of dominant commodity, followed by user iron ore transhipping operation, the these and other projects, Pilbara Ports LNG, salt and condensate. Pilbara port of Cape Preston West will be used Authority announced the port of Port Ports Authority has been progressing for the export of salt and potash and the Hedland’s modelled shipping capacity opportunities to diversify trade through port of Urala will initially be used for salt had increased by 40 million tonnes per the port. Future opportunities include exports. Development opportunities with annum, or 6.9 per cent, to 617 million methanol and magnesium products, potential users for the ports of Anketell urea exports and cruise ships. Imported and Cape Preston East continue to be tonnes. products used for processing, including explored. These future ports will further Pilbara Ports Authority continues to soda ash, caustic soda and sulphuric support the ongoing growth of small pursue further growth and new trade acid, are increasing as lithium mining and large miners in Western Australia, opportunities within port of Port Hedland. and other processing operations are agribusinesses and other regionally- A new general cargo facility and logistics developed in the Pilbara. Similar to the based industries.

Shipping Australia Limited Annual Review 2019 71 PORTS - WESTERN AUSTRALIA Fremantle

Good commercial performance

By CHRIS LEATT-HAYTER, chief executive ofcer, Fremantle Ports

Despite an upward trend in container Terminal. That work included consideration trade, port-related road trafc movements of capital investment options and will continued to fall, reducing the port’s impact continue during 2019-20. on surrounding roads. In total, 16,000 This year saw the creation of a Western fewer TEU travelled by road, compared Australian Government steering group with the previous fnancial year. The for the public waterfront section of the percentage of unladen trucks reduced from Fremantle Inner Harbour. The Victoria Quay 24 per cent to 21 per cent. While container In the face of an uncertain international Waterfront Steering Group has the strong trade has grown by 38 per cent since 2010, trade environment, Fremantle Ports’ support of Fremantle Ports. The group the number of truck movements has not commercial performance in the 2018-19 has wide representation and is charged increased due to improvements in truck fnancial year was notable. The total with preparing a vision for Victoria Quay efciency and utilisation of rail. contribution to the State of Western as a vibrant ‘people place’ in the future. It Australia was $68.0 million, slightly Fremantle Ports continued to collaborate builds upon existing planning outcomes above the budget target of $66.3 million. with, contribute to and support the and consultation, with Government and Fremantle Ports united in their desire to see The total value of trade through the port of Western Australian Government’s Westport Taskforce, which is providing guidance appropriate and exciting development at Fremantle was $32.8 billion, representing the western end of Victoria Quay. an average hourly value of $3.8 million for to the Western Australian Government on the year. Overall port trade was down 1 Perth’s long-term infrastructure needs, and We also completed improvement works to per cent, however, container trade rose 2.3 developing a plan to manage the growing the value of $3.3 million at the Fremantle per cent and full container exports were up freight demands for the next 50 years and Passenger Terminal, further contributing to 9.8 per cent, refecting a resilient Western beyond. Fremantle Ports will continue this another successful cruise season during Australian economy. support in the coming year by providing which the port of Fremantle received 35 high-level advice on port planning options, cruise ship visits. Two major tender processes occurred, freight and logistic implications, and Our programme of asset maintenance relating to the two Fremantle Inner Harbour environment considerations. (North Quay) container terminal leases remained on schedule, with work completed on seawalls, berths, loading and and the North Quay Rail Terminal. These A large amount of time was invested in unloading infrastructure, as well as other have been important matters for Fremantle developing a strategy for Fremantle Ports’ Ports to address, not just because of their bulk business operations at Kwinana Bulk assets. operational criticality but also because of the confdence their fnalisation will deliver to the wider port community. In both cases, there has been a strong focus on outcomes that deliver efciency, innovation and the ongoing maintenance and further development of these assets. The signifcant increase in the share of containers being transported on rail from 16.1 per cent to 20 per cent this past fnancial year, reduced the number of truck movements on roads into and out of the Fremantle Inner Harbour and on key arterial routes in the Perth metropolitan area. A clear commitment by the Western Australian Government to replace the ageing Fremantle Trafc Bridge, including duplication of the rail crossing, will ultimately make the rail option more efcient.

72 Shipping Australia Limited Annual Review 2019 INTERNATIONAL ORGANISATIONS CLIA Australasia

Cruise sector makes a big impact

By JOEL KATZ, managing director, Australasia Cruise Lines International Association (CLIA)

A thriving cruise industry is having an ships visited 47 diferent ports around • Among other States, Queensland enormous positive impact on economies Australia last fnancial year, bringing received direct expenditure of $490 million, worldwide, including in Australia, where tourism to some of the most remote coastal followed by Victoria ($168 million), Western double-digit growth is fuelling job communities in the country and creating Australia ($109 million), South Australia creation and helping to develop regional benefts in locations that might otherwise ($67 million), Tasmania ($49 million) and the tourism opportunities. be less accessible to visitors. Northern Territory ($31 million). Figures released recently by CLIA show Other key highlights from the report Meanwhile, at the international level, the the cruise industry has increased its total include: cruise industry is working hard to reduce its value to the Australian economy by 11.2 • The accommodation sector was the impact on the environment and has made per cent, contributing $5.2 billion in direct biggest benefciary from cruise passengers, unprecedented progress in the past year. and indirect output during the 2018-19 receiving $450 million or 33.3 per cent of fnancial year. What these fgures prove Globally, CLIA cruise lines are investing is that the rising popularity of cruising is their combined spend. more than $22 billion in ships with new, having a very positive efect on the local • The food and beverage sector energy-efcient technologies and cleaner economy, making a massive contribution accounted for almost $274 million or 20.3 fuels, putting them on track to achieve the and supporting thousands of jobs. per cent of passenger spend, followed industry’s target of a 30 per cent reduction in carbon emissions across the world feet Importantly, they dispel the myth that cruise by transport ($196 million, 14.5 per cent), by 2020. ships come and go without leaving local retail ($159 million, 11.7 per cent), shore benefts. They show that cruise passengers excursions ($133 million, 9.8 per cent) and CLIA’s third annual Global Cruise Industry and cruise lines make a huge impact and entertainment ($59 million, 4.4 per cent). Environmental Technologies and Practices that their spending is increasing. • At the start or end of a cruise, Report was released in September and The fgures are contained in the latest international visitors spent the most per day outlines major advances in the deployment annual Economic Impact Assessment on shore, averaging $569 each, compared of sustainability measures since the for 2018-19, commissioned by CLIA and to domestic travellers who spent $436 per previous year. day. the Australian Cruise Association (ACA). It says 44 per cent of new-build cruise Compiled by AEC Group, it shows the • In a transit port, international visitors capacity will utilise liquifed natural gas cruise industry supported the equivalent each spent an average of $211 per day on (LNG) for primary propulsion, achieving of 18,135 full time jobs in Australia during shore, while domestic travellers spent $174 signifcantly lower emissions than ships 2018-19, a 6.6 per cent increase on the per day. running on convention marine fuels. previous year. • Cruise ship crew members each spent It also says more than 68 per cent of global It says 1,240 cruise ship visits led to an average of $173 per day while in port, capacity utilises exhaust gas cleaning 3.8 million passenger and crew visit making a combined expenditure of $35 systems (EGCS) to meet or exceed air days, resulting in direct expenditure by million in 2018-19. emission requirements, and outlines other passengers, crew and cruise lines totalling $2.5 billion. In particular, it shows a major • Cruise lines contributed direct advances like the deployment of shore-side increase in cruise passenger spending in expenditure of almost $1.1 billion – an power and advanced wastewater treatment 2018-19, up 17.4 per cent on the previous increase of 4.6 per cent on the previous systems. year to total almost $1.4 billion. Cruise year – spent on items including fuel, food Cruise ships comprise less than 1 per passengers now spend an average of and beverage supplies, port charges and cent of the global maritime community, $387 each for every day they’re on shore fees, and administration. but the cruise industry is at the forefront in Australia, which provides enormous • New South Wales received the greatest in developing responsible environmental benefts to businesses like hotels, share of direct expenditure from the cruise practices and innovative technologies. You restaurants, tour operators and retailers. industry, receiving $1.55 billion, including can fnd out more at www.cruising.org.au/ The impact is felt far and wide, too. Cruise $1.54 billion in Sydney. Regulatory/Sustainability.

Shipping Australia Limited Annual Review 2019 73 INTERNATIONAL ORGANISATIONS International Chamber of Shipping

A time of transformation

By SIMON BENNETT, deputy secretary general, International Chamber of Shipping

The Fourth Industrial Revolution, as ICS is acutely aware of the urgent need review of the IMO STCW Convention envisaged by the World Economic for all economic activities, including governing seafarers’ training standards, Forum, will be fundamentally diferent international shipping, to eventually which is already gaining traction with from the previous three which were eliminate GHG emissions as soon as governments, following a speech by the characterised mainly by advances practicable, through a combination of ICS chairman in Manila, at the end of in technology. The underlying basis short and longer-term measures. 2018. ICS expects to make a detailed for the fourth revolution lies in The maritime sector has already made proposal to IMO on this issue, during radical advances in communication impressive CO2 reductions since 2008, the course of 2020. and internet connectivity. We thus something for which the shipping ICS is also making progress on a range have the potential to drastically industry is given insufcient credit. But of other important legal and policy enhance the efciency of maritime now we need to redouble our eforts to issues at many diferent international transport while supporting further deliver further dramatic improvements fora. This includes the International improvements to safety and in fuel efciency, as demanded by Labour Organization, in Geneva, with environmental performance. governments and society at large. which ICS has celebrated 100 years of The immediate focus of International ICS has been leading the way in coming co-operation, and the United Nations, in Chamber of Shipping (ICS), and forward with constructive proposals New York, where ICS is engaged in high the shipowners we represent, is the for GHG reduction at IMO, and will level negotiations on a new UN Law of successful implementation of the UN continue to do so throughout 2019. the Sea agreement for the protection International Maritime Organization The transition to zero CO2 emitting of marine Biodiversity in Areas Beyond (IMO) global sulphur cap, which takes fuels – which ICS has dubbed the National Jurisdiction (BBNJ), which ‘Fourth Propulsion Revolution’ – is the complete efect on 1 January 2020. could have signifcant consequences challenge of our age, and one that ICS for the future regulation of shipping. ICS is proud of the comprehensive is sure the industry will embrace. advice that it has produced to help There are many other pressing issues in This will require truly massive which ICS is engaged as the industry’s shipowners prepare, and the notable investment in research and success that ICS has had in persuading development, which ICS believes global trade association, not the least IMO to adopt appropriate guidelines for must be at the heart of the IMO GHG the danger of a global trade war. There its member states. Strategy if the ambitious reduction is also the unacceptable spike in the number of violent pirate attacks of Together, these initiatives should go at targets that IMO member states have West Africa. least some way towards reducing the set, are to be met. In cooperation with other international associations, risk that shipowners, through no fault of The work of ICS is vital to ensure that ICS is about to come forward with a their own, could be unfairly penalised the shipping industry can present a radical proposal to IMO, to suggest by Port State control authorities in united front when seeking to infuence how accelerated R&D can be delivered its global regulators, especially at IMO, the event that safe and compliant low via a mandatory R&D contribution, to sulphur fuels are initially unavailable in be paid by shipowners worldwide per so that regulatory outcomes agreed every port worldwide. tonne of marine fuel purchased for by governments are compatible with economic sustainability, as well as the There are still many questions that will consumption. We very much hope continuous improvement of safety and not be fully settled by January 2020, that the Australian Government will give serious consideration to this bold environmental protection. including what the long-term cost of industry proposal. compliant fuels will be, but hopefully We especially appreciate the continuing this enormous regulatory change will Another important development support of our Australian full and proceed as smoothly as possible. is ICS’s call for a comprehensive associate members, MIAL and SAL.

74 Shipping Australia Limited Annual Review 2019 INTERNATIONAL ORGANISATIONS AUSMEPA

Encouraging marine environmental consciousness to save our seas

By JULIE NASH, executive ofcer, Australia Marine Environment Protection Association

While the Australia Marine Environment in attendance: Caribbean; Africa; Asia; ofers unique postgraduate educational Protection Association has been around Pacifc and South America, along with programmes, undertakes wide-ranging since 2000 and quietly going about our myriad guest speakers from around the research in maritime and ocean-related business of promoting education in the world. Funded by the European Union studies, and continues maritime capacity marine environment, this year we have and implemented by the IMO, the Global building in line with the UN Sustainable taken activities to the next level are MTCC Network (GMN) initiative unites Development Goals. What an honour to please to have been recognised. maritime technology regions. This global go there to visit their complex, meet the network promotes energy efciency in the students and stay in the beautiful city of AUSMEPA brought the younger maritime sector to help navigate shipping Malmo. generation to SPILLCON this year into a low-carbon future. Developing and achieved a highly commended in The AUSMEPA’s Marine Emissions Portal countries and, least developed countries the Maritime Services category of the was very well received, and many of the and small island developing countries, Australian Maritime Awards for our delegates congratulated us on the highly are the main benefciaries of this initiative. ‘Engineering’ Unit of Work for High School innovative education tool for the maritime students, Engineering Pollution Solution The focus was on how can we achieve industry and for the health of the ocean’s Investigation. zero level GHG for the future in maritime? and port communities. We’ve been invited The European Union speaker said that to further discuss the implementation Working together with the Australian air pollution will be paid attention to, with of the Marine Emissions Portal for the Marine Oil Spill Centre and the Spillcon a focus on new technological initiative Caribbean Islands, port of Mombasa team, AUSMEPA developed a unit for ‘Green Ports’, and for ports to look at and port of Shanghai, along with port of of work for teachers at high schools incentivising ‘clean ships’. Copenhagen/Malmo, with next steps to around Perth to educate students on include all the Scandinavian countries. oil spills, the damage they causes and The World Maritime University (WMU) current mitigation strategies being used was founded in 1983 by the International Next year we celebrate 20 years of in Australia. Student then had to invent Maritime Organization (IMO), a specialised encouraging learning about the oceans their own ‘oil spill clean-up tool’, using agency of the United Nations, as its and the environment through school engineering elements. With over 30 premier centre of excellence for maritime education programmes and seafarer entries submitted, it was an extremely postgraduate education, research, education. More details are available at difcult decision to select the top 3. They and capacity building. The university ausmepa.org.au. then presented their projects to their peers and guest judges at SPILLCON. Winning the competition were a group of young ladies from Como Secondary College with their ‘O.S Nets’, well done girls! Later in the year, I was invited by the International Maritime Organization (IMO), to present AUSMEPA’s ‘Maritime Emissions Portal’ at their conference in Malmo Sweden, at the prestigious World Maritime University. The conference - International Seminar on Trends & Challenges after the Paris Agreement: Global Maritime Technology Cooperation Audience at the Global Maritime Technology Cooperation Centres (MTCC ) Centre (MTCC). All regional MTCC’s were Network Project in Malmo Sweden

Shipping Australia Limited Annual Review 2019 75 INTERNATIONAL ORGANISATIONS World Shipping Council

Working collaboratively for liner shipping

By TIM WICKMAN, managing director Asia, World Shipping Council

The World Shipping Council (WSC) The members of WSC operate close Maritime Organization (IMO). The is a non-proft trade association to 90 per cent of the global liner ship IMO is a specialised agency of the which provides a coordinated capacity, providing approximately United Nations and is the global voice for the liner shipping 500 regularly scheduled services standard-setting authority for the industry. Liner shipping is the linking the continents of the world. safety, security and environmental service of transporting goods by Collectively, these services transport performance of international shipping. about 60 per cent of the value of means of ocean-going ships that The WSC was granted Consultative global seaborne trade, and more than transit regular routes on fxed Status at the IMO in 2009, where US$4 trillion worth of goods annually. schedules. Most liner shipping we have actively participated in services are container services, The World Shipping Council (WSC) the development and oversight of but the membership also includes was originally formed in 2000, to international safety, security and major ro-ro operators and car interface with the US Government environmental regulations for the carriers, which also provide regular on behalf of the international liner past decade. WSC was one of the scheduled vessel calls. shipping industry. After the terrorist principal organisations behind the attacks of September 11, 2001, WSC carriage ban adopted by IMO to and its member companies forged help support enforcement of the a close working relationship with 2020 requirement of a reduction of the US Government, the European sulphur content in marine fuel oil Commission, and international from 3.5 per cent to 0.5 per cent. organisations to develop new Consistent implementation and laws, regulations and programmes enforcement of the global sulphur designed to better secure reduction requirements are necessary international maritime commerce and to achieve both the environmental the thousands of supply chains that benefts of the regulation and to importers and exporters around the ensure a level commercial playing world depend upon. feld for carriers. In 2007, WSC opened an ofce WSC is now fully engaged in the in Brussels to better support the discussions regarding steps to be industry’s cooperative eforts with taken to reduce GHG emissions. the European Commission, and There will be considerable attention in in late 2018, WSC opened a new the coming months about short-term ofce in Singapore, to work with measures to reduce GHG emissions the governments of various Asian/ from the existing feet. This is Oceanian countries on regulations important work, but it is equally important that the IMO establish a afecting the maritime supply chain in platform for accelerating research that region. and development of low carbon and WSC is active both at the regional zero carbon fuels and technologies level with national governments that are necessary to meet the IMO’s and also at the international level, longer term GHG reduction goals. in particular at the International WSC and other partners, are planning

76 Shipping Australia Limited Annual Review 2019 to submit a detailed proposal to the IMO There is little doubt that the container with another carrier has numerous to establish an International Maritime and container shipping have benefts for the supply chain. Firstly, Research Board (IMRB), with funding revolutionised trade, and have driven vessel sharing provides scale, allowing from the industry and other partners to globalisation and trade, as also recently carriers to sail with bigger vessels, thus support this critical element of the IMO illustrated in the Australian short flm providing a signifcantly lower cost strategy. “World in a Box”, celebrating the 50th per container unit carried. Secondly, Anniversary of International Container cooperation will often generate the Maritime safety is another area where Services into Australia. In fact, according cargo volume necessary to achieve WSC has been active at the IMO. After to the World Bank, the container trafc in the required fnancial result to sustain voluntary eforts proved unsuccessful Australian ports has doubled in volume a unique port call or service, or an in solving the problem of mis-declared since the estimated 3.5 million TEU, enhanced weekly frequency in a given container weights, in March 2011 the in year 2000. This illustrates that liner market. Without the ability to cooperate, World Shipping Council (WSC) and shipping and global trade are intrinsically services to smaller ports, regions or the International Chamber of Shipping linked – one cannot reasonably exist, and countries could be at risk. (ICS) submitted a formal proposal to certainly cannot grow – without the other. the IMO, to consider issuance of a The operation of liner shipping networks regulation making it mandatory for The primary requirement for a ship is fuid, and operators need the ability packed containers to be weighed as a operator to enter liner shipping markets, to modify those networks to refect condition for being stowed aboard ships. or to maintain on-going regular service changes in the marketplace with That proposal, and additional work over to existing markets, is the enormous limited service disruption, while at the the next few years, resulted in the IMO capital investment required for ships and same time ensuring ample capacity is adopting a mandatory container weight equipment. The use of “liner shipping available each week to transport global verifcation requirement on shippers. The agreements” in various forms have trade volume. The use of cooperation requirement to make container weight existed for decades, and agreements agreements by liner shipping companies verifcation a condition for vessel loading, that are used for the purpose of sharing is a well-used and much needed tool to which is accomplished through the vessel assets are a fundamental tool ensure continuity of service for the long- submission by the shipper of a Verifed used by carriers to efectively and term. There are numerous operating Gross Mass or VGM, became legally efciently deploy their ships and agreements in place today and in fact binding on July 1, 2016. equipment, once the capital investment more than 75 per cent of the about 55 is made. The WSC accordingly works diferent container liner services calling The WSC has also been focused on with governments around the world Australia today (October 2019), have ways to reduce pest contamination of to ensure that carriers through these some form of operational cooperation containers and their cargo, something “operational agreements” can continue between diferent shipping lines. The especially important for Australia. In to provide the services needed to ability to easily enter into them, adjust 2016, WSC together with a number of accommodate world trade. them and exit them provides operators other industry organisations published with both the fexibility needed to adjust the “Joint Industry Guidelines for Under the current regulatory regime, in to changes in market conditions, and the the Cleaning of Containers”. WSC every major trading nation around the legal certainty needed to do so without supports and actively participates world, new entrants or smaller carriers, undue regulatory risk. in joint government-industry eforts for example, have the ability to partner to raise awareness and encourage with other carriers, some of which will Today, the World Shipping Council is voluntary steps to reduce risks of have larger, broader networks, in order recognised as a respected advisor to to expand the services that the new pest contamination of containers and industry and governments in all of these entrant or the smaller carrier can ofer to their cargoes, such as ICCP’s Sea areas, as well as an active participant a customer. Similarly, under the current Container Task Force (SCTF) and in policy debates that will afect the regulatory regimes, when a carrier ofers the North American Sea Container liner shipping industry, its customers, a unique service, perhaps with some Initiative (NASCI). WSC and its and the economic vitality of all trading unique port calls, it is able to share member companies will continue to nations. In Australia, WSC works some of its capacity with other carriers engage actively and constructively closely with Shipping Australia Limited that might seek to ofer service to those in raising awareness and promoting (SAL), supporting its members and the ports, thereby creating additional service reasonable measures to minimize pest industry to achieve the most benefcial and competition in that market. contamination of containers and their environment possible, for all relevant cargoes. Allowing a carrier the ability to partner parties in the transport chain.

Shipping Australia Limited Annual Review 2019 77 INTERNATIONAL ORGANISATIONS FONASBA

Celebrating 50 years Delegates at 50th annual general meeting, Miami USA

By JONATHAN WILLIAMS, secretary, Federation of National Associations of Ship Brokers and Agents

FONASBA’s most signifcant event will be pleased to hear from you. Our countries in membership therefore of 2019 occurred on 23 April when eforts to expand global recognition of stands at 63. we reached our 50th birthday, the FQS were also given a major boost Elsewhere, FONASBA has expanded a milestone that was ofcially at the Miami meeting as reported its range of cooperation agreements celebrated at our Annual Meeting in below. with external bodies, recently teaming Miami, in October. We were joined On the education front, the FONASBA up with United for Wildlife (UfW) and there by SAL CEO Rod Nairn and his Agent Diploma is proving very Business Action Against Counterfeiting wife Sue, as well as representatives popular, with more than 270 students and Piracy (BASCAP) to support from 32 member associations, four registering in the frst year. As well actions to prevent the illegal trades in Club members and a host of guests as this entry-level qualifcation for endangered species and counterfeit from the US maritime sector. newly-appointed operational agency goods. Ship agents have long been I will return to the Annual Meeting staf, we are securing discounted at the forefront of actions to prevent later in this article but for now access for FONASBA association smuggling and illicit trade, and our will summarise some of the other member companies to the customs engagement with UfW and BASCAP developments that have taken place and documentation training provided will enhance the fow of information over the past year. by the World Customs Organisation and intelligence around these two and the International Chambers of problem areas. Two of the main priorities for the Commerce. By the time this article is current term are expansion of the published, companies will be able to These and our other activities were FONASBA Quality Standard, and access those training courses through discussed in detail during the Miami the development of our education the FONASBA website. The winner Annual Meeting, which also introduced programme, and it is good to report of the FONASBA Young Ship Agent or a number of new features aimed at positive progress on both. Ship Broker of the Year (YABA) award increasing the value of the event to the delegates. The Quality Standard has seen a was Stefan Gielen of MSC in Belgium, signifcant increase in the number of whose excellent paper on dangerous 2019 saw the introduction of the approved members and accredited goods declarations will form the basis Association Best Practices Committee companies. This time last year, of further action by FONASBA on meeting, which gave an opportunity 32 countries and 478 companies this vital issue for ship agents and within the Annual Meeting programme were covered, and by the Miami operators. for a discussion on matters of fnance, Annual Meeting, this had risen to 38 Membership also continues to administration and other internal countries and 523 companies, which expand, and in the past year we have practices directly relevant to national clearly demonstrates its increasing welcomed the International Maritime associations themselves. Making it value to ship agents. Only two SAL Union of Greece and the Association a Standing Committee of FONASBA members, Monson Agencies and of Maritime Agents of Ukraine as also elevates the discussion on such Seaway Agencies, are approved to the Full members, two new Candidate issues to the same level as those Standard and it would be good to see members in ASONAV of Colombia relating to ship agency, ship broking that number increase. The Standard and NAVE of Costa Rica and new and European matters. The main is relatively easy for a well-established Associate members in Curaçao, topics at the inaugural meeting were company to secure, so if other SAL two more in Romania and a second how to increase revenue and provide members would like to apply, Rod in Senegal. The total number of additional services to members,

78 Shipping Australia Limited Annual Review 2019 Delegates at 50th annual general meeting, Miami USA subjects close to the heart of all of on the anticipated efects of new and and value of the agent and the Quality us! Four associations: Argentina, Italy, disruptive technologies on the role of Standard, from the viewpoint of a Mexico, and Portugal, addressed the the ship agent. The participation of charterer and operator, was extremely meeting and outlined their successful recognised experts, particularly in the well received by the delegates. To strategies on both topics. Copious feld of leading edge technologies, enhance the support the Standard notes were no doubt taken by other was greatly appreciated as a means of enjoys from BIMCO, INTERCARGO and delegates. navigating myriad competing and often INTERTANKO, we are currently seeking overlapping initiatives in this rapidly similar endorsements from other major To increase interaction between the developing area. charterers to further enhance industry speakers and delegates, the decision awareness of the Standard. was taken to reduce the number of The L&PA plenary also endorsed the presentations in favour of discussion fnal draft of the revised UNCTAD As always, the Annual Meeting closed panels and breakout sessions. With the Minimum Standards for Ship Agents with the Council Meeting. This year, active support of ASBA, FONASBA’s and the Normal Agency Activities amongst all the usual administrative member association in the US and our Summary. The revision and updating matters, Council endorsed the Best host in Miami, those sessions were of the 1988 Minimum Standards to Practices Committee as a Standing supported through the participation of refect current agency practice was Committee and approved the recognised industry experts to bring driven by FONASBA and the completed nomination of Jeanne Cardona of the additional knowledge and experience, draft is now with UNCTAD and UN/ USA as its Chair. At the same time, as well as another perspective, to the CEFACT for their review and, hopefully, the Chartering & Documentary and discussion. endorsement. The Normal Agency Liner & Port Agency committees were Activities Summary is a guideline renamed the Ship Broker and Ship Following the launch at the ECASBA document designed to assist agents in Agent Committees respectively, in Plenary meeting of a series of short agreeing with principals, what services order to enhance awareness of their position papers that concisely set would normally be provided for the core activities, particularly for external out its views on important European standard agency fee. It is based on purposes. maritime issues such as eMaritime, the activities headings listed in the customs and border controls, the FONASBA/BIMCO Agency Appointment Council also saw the formal publication recognition of ship agents and and General Agency Agreement of the commemorative 50th anniversary veterinary checks, the meeting then forms, and provides guidance as to book, entitled: “FONASBA, the First moved to a breakout session. These what should be included in the fee. It Fifty”, which recounts our history, enabled delegates to work together is available for use now and can be summarises our current status and to draft an action plan for each paper. downloaded from the Documentation activities and closes with predictions These papers will soon be circulated page of the FONASBA website at: www. from the Committee Chairs and our to associations, regulators, legislators fonasba.com/documentation YABA winners on where we are going in and authorities, ensuring common and the future. As the editor, I am pleased consistent messages on those topics In Miami, we formally granted FQS the book was very well received. are carried across all ECASBA member accreditation to the 38th FONASBA Copies have been provided to every countries. country, Bulgaria. More applications member and contributor. are in the pipeline, so by the time this The Chartering & Documentary article is read we will be well on our So that is where FONASBA stands plenary featured two discussion way to having 50 countries covered. at the end of its frst half century. It panels, one looking at the impact of Encouragement to members to sign has changed signifcantly since its the 2020 sulphur cap on freight rates up was this year enhanced by an foundation in London 50 years ago but and the other the value of the ship extremely enthusiastic address from worryingly many of the same issues are broker to ship owners and operators. Jefrey Milstein, a senior operations still on its agendum. No doubt, in spite Similarly, the Liner & Port Agency ofcer with the global trading frm Vitol. of our best eforts, they will still be there plenary featured a discussion panel His ringing endorsement of the role in 2069!

Shipping Australia Limited Annual Review 2019 79 INTERNATIONAL ORGANISATIONS International Federation of Freight Forwarder Associations

in the FIATA Secretariat to seek In today’s logistic processes FIATA, uniformity, consistency, efciency, ease and its members, see themselves as of operability and sustainability in the indispensable partners to sea freight movement of goods across borders. carriers and, while this aspect is being In the sea freight environment, FIATA, reappraised by some carriers by changes through its Multimodal Transport in their operational arrangements to Institute, Working Group Sea Freight, vertically integrated carriage and border has been involved, since the mid-1950s, clearance operation, which compete on harmonisation and guidance for with the services traditionally provided by international freight forwarders, with international freight forwarders, the long- uniform and standard documentation. term implications of such arrangements Its notable success being the Negotiable remain to be determined. While the FIATA Multimodal Transport Bill of carriage and border clearance of the Lading, as amended in 1992. This consistent product and delivery in an document can be used as a marine FCL environment may appear to many, a bill of lading in a negotiable or non- relatively simple task, it is suggested that negotiable format. The FMTBL has been this is not as easily replicated in the more deemed by the International Chamber challenging environment of LCL cargo, of Commerce, to be in conformity with with deconsolidation, safety, security, the UNCTAD/ICC Rules for Multimodal customs and agriculture impediments, Transport Documents and, in the Supporting negotiable context, conforms with Guide or project cargo requirements. From a for the Uniform Customs and Practice FIATA perspective, the logistics chain transparent for Documentary Credits (UCP600), is more than just the simple carriage when issued as a multimodal transport of goods, and with an ever-changing and efcient document in line with Article 19, as a bill regulatory and business environment, of lading or, in line with Article 20, as an partnerships will continue, but perhaps in international acceptable transport document. a diferent form. In furthering the drive on standardisation In Australia, issues as to operations freight processes and best practice, FIATA has released with carriers, stevedores or regulatory best practice guides to its members agencies, are addressed through FIATA’s as to Container Shipping Quality Australian members, the Australian By STEPHEN MORRIS, acting of Containers and Demurrage and Federation of International Forwarders Detention in Container Shipping. As to director general, International Ltd., and the Customs Brokers and the latter, FIATA has sought to provide Federation of Freight Forwarder Forwarders Council of Australia Ltd. a user’s perspective as to an issue In all these arrangements, as well as Associations which creates tension between carriers in other economies, FIATA sees that and their service providers, as to the the objective must be improving the landside cargo handling, where the economic performance of that respective stevedore faces resource implications As part of its remit to its members as to vessel servicing and land side economy and its competitive position in as national associations in ninety delivery in the same time frame. There global trade. Issues such as the World eight countries, or its fve and a half is, in relation to the landside delivery and Trade Organisation Agreement on Trade thousand individual service providers in receipt of cargo, the process by carriers Facilitation and National Committees international trade logistics and supply and terminal operators to “incentivise on Trade Facilitation, are pivotal to that chain management, the International the orderly movement of containers outcome. Federation of Freight Forwarders through ports and terminals” or, as In the Australian context, without a better Associations (FIATA) plays a pivotal role more commonly known... demurrage level of interface between the parties in in international standard setting and and detention charges. FIATA has, international trade logistics and supply advocacy with international and regional on behalf of its members, made its governmental and non-governmental position clear in its submission to the US chain management, both business entities. Headquartered in Zurich and Federal Maritime Commission, which is and regulatory, the economic impact founded in 1926, FIATA represents addressing this issue, where it stated, on Australia’s trade performance and members interests across all modes “FIATA supports a more transparent, it competitive position will remain on a of transport, through its operational equitable and business oriented process downward trend, as seen over the years bodies of institutes, advisory bodies to such charges not only in the USA but in the World Bank Logistics Performance and working groups, where subject for many other economies” (where the Index and its Doing Business 2019... time matter experts blend with the resources practice occurs). for a rethink!

80 Shipping Australia Limited Annual Review 2019 INTERNATIONAL ORGANISATIONS Customs Brokers and Forwarders Council of Australia Limited

A challenging year for international trade

By PAUL DAMKJAER, chief executive ofcer, Customs Brokers and Forwarders Council of Australia Limited

The CBFCA’s review of the year that Infrastructure surcharges, over Security Division, reviews on aviation has been, has witnessed a challenging which service providers have no and maritime security and the changes time for the Australian economy, control, continue to impact on the to the Regulated Air Cargo Agent (RACA) exporters, importers and service overall structure of service delivery of and Accredited Air Cargo Agent (ACCA) providers in international trade and international trade services in Australia. schemes. supply chain management. Articles Many of these costs are met by the On the education side, it is pleasing to have been written on the economy, as end user or consumer, which adds to note we have over 580 students in both well as international air and sea freight Australia’s inability to efectively compete the Customs Brokering and International market, which continue to maintain over other international economies. a less than enthusiastic outlook in Freight Forwarding Diplomas. These relation to world trade. Our local The CBFCA has made its presence courses continue to be recognised market has been further impacted known through advocacy to the by industry as the leader in terms of by government policy on customs Australian Competition and Consumer development of future Licenced Brokers and security by the Australian Border Commission (ACCC) concerning and Freight Forwarders, in Australia. Force (ABF) and Department of stevedore’s infrastructure charges, and This year we commenced our student Agriculture (DOA), respectively. how it’s afecting Australia’s international scholarship in both diplomas; funding standing on a global basis. Chain of was gained through the International responsibility has also made its presence Trade Development Fund (ITDF), which known to all international trade service drew a great deal of attention with providers, which the CBFCA has aspiring students. endeavoured to advise its members. The frst full year of our electronic tarif In international forums, the CBFCA has passed, it cannot be said in any will continue its close association other way, this changed the landscape of with the World Customs Organisation the industry in this area. The introduction (WCO), our directorship on the of the electronic tarif to our members, International Federation of Customs it cannot be denied, saved hundreds Brokers Associations (IFCBA) and our of thousands of dollars to the industry commitment on various committees by allowing competition to fourish. We of the International Federation of continue to innovate our tarif by listening Freight Forwarders Associations to the members needs and industry (FIATA), which will enable us to regain requirements. FIATA accreditation for our diploma of The CBFCA is fortunate to have a skilled, International Freight Forwarding. dynamic and committed administration The CBFCA greatly assisted in meeting team, whose aim is to bring its members the challenges of border and supply to the forefront of the industry. This chain security for the Department of support can only be gained by a positive Home Afairs, Aviation and Maritime and strategic CBFCA Board.

Shipping Australia Limited Annual Review 2019 81 MARITIME LAW AND INSURANCE

CMI Colloquium - Mexico City

By MICHELLE TAYLOR, partner, Colin Biggers & Paisley Pty Ltd

The Comité Maritime International What is CMI? joint meeting of the two committees (CMI) Colloquium 2019 took place was held in London on 25 September CMI is the oldest organisation in the in Mexico City from 30 September 1967. From that time on, until world that is exclusively concerned to 2 October 2019, with over 200 the adoption of the International with the unifcation of maritime law delegates in attendance from 42 Convention on Civil Liability for Oil countries. Australia was represented and related commercial practices. Pollution Damage (CLC) in 1969, by Stuart Hetherington, as Executive Article 1 of the CMI Constitution the co-operation between the IMO Committee Member of CMI and provides, in part, as follows: and CMI was continuous. The CMI Michelle Taylor, as Australian Vice “…It is a not-for-proft international through its International Committee President of the Maritime Law organization established in Antwerp chaired by Lord Devlin, contributed Association of Australia and New in 1897, the object of which is to signifcantly to the CLC. Zealand (MLAANZ). The Colloquium contribute by all appropriate means was opened by the president of CMI, The continuation of co-operation and activities to the unifcation of between CMI and the IMO has Christopher Davis, together with the maritime law in all its aspects.” president of the Mexican Maritime created a signifcant number of Law Association, Ignacio Melo. The CMI has an Executive Council conventions, including the Athens comprising of ofcers and councillors Convention, the Convention on from around the world. Its members Limitation of Liability for Maritime are 54 national Maritime Law Claims, the Salvage Convention, Associations (MLAs), including the Bunkers Convention and the MLAANZ. The individuals who Wreck Removal Convention. CMI represent CMI include lawyers also worked with UNCITRAL for and industry representatives from 10 years on the UN Convention shipping companies, insurers and on Contracts for the International bankers. Carriage of Goods Wholly or Partly by Sea, known as the Rotterdam Rules. The CMI works closely with the Signifcantly, CMI was one of the frst International Maritime Organization NGOs to be granted consultative (IMO) to develop international status by the IMO. maritime law. The co-operation between CMI and the IMO began Colloquium sessional programme after the stranding of the Torrey The three day colloquium sessional Canyon in 1967. The British programme in Mexico consisted of a Government requested that the number of topics relevant to maritime IMO consider the problems raised lawyers internationally. A brief by that incident. After IMO defned overview of each of these topics is the matters for consideration, the outlined below. CMI established an international The Ofshore Energy Industry 40 committee to study the liability Years Post IXTOC I problems arising out of the Torrey Canyon and to work in co-operation The speakers in this session with the IMO’s Legal Committee. A represented Australia, USA, Mexico

82 Shipping Australia Limited Annual Review 2019 and Brazil. income. If successful, it is estimated and protection and indemnity (P&I) that compensation of more than insurers were discussed. High level Frank J Goynor of Gard North $200 million will be assessed. Such observations were made that whilst America, recounted the story of the litigation is costly and its outcome specialised cyber risk insurance IXTOC I, which began the liability is uncertain in a legal environment products have been developed in dilemma for the ofshore energy without any applicable liability hull and cargo markets, no such industry. In 1979, an explosion convention. specialised wordings have been at the IXTOC I platform, located developed by P&I clubs. 80 kilometres of the coast of the His Honour’s closing remarks Gulf of Mexico, caused the largest included the following comments: This session also noted the ever peace time oil spill. By way of adopted resolution of the IMO “Inaction on the development of comparison, the 2010 Deepwater Maritime Safety Committee (i.e. an international convention on Horizon blowout was considered, and ofshore hydrocarbon blowouts Resolution MSC.428(98) - Maritime the similarities were extraordinary and spills serves no one’s long- Cyber Risk Management in Safety as they both involved a failure of the term interest. The presence of new Management Systems). This blowout preventer. insurers to support cover under such resolution encourages shipping companies to ensure that cyber Frank Goynor stated that the concern a convention would bring new eyes with oil platform blowouts (as to the management of the risks of risks are appropriately addressed in opposed to ship sourced blowouts) a disaster and may help to avert, or existing safety management systems is the uncertainty of the wider lessen, the impact of what might (as defned in the ISM Code) by the environmental impact on multiple otherwise develop as a massive end of 2020 (i.e. no later than the frst states, and the potential cost of the blow to the environment in the next annual verifcation of the company’s transboundary pollution damage. It Deepwater Horizon type of ofshore document of compliance after 1 was noted that 31 insurers have left catastrophe.” January 2021). the market since 2017, resulting in The future of shipping lawyers Civil Liability, IOPC Fund and HNS an estimated 21 per cent reduction Conventions - Is it time for Latin in the premium pool. These are Young maritime lawyers from Italy, American Governments to ratify sobering statistics, when the potential France, Mexico and Ecuador, these conventions? scope of damage is considered. discussed the impact of technological developments on the future maritime Dr Rosalie Balkin, secretary-general The Honourable Justice Stephen law, for example artifcial intelligence, of CMI, chaired this session and Rares presented a paper entitled smart contracts and blockchain presentations were given by Jose “Charting a New Course - technology. Maura of IOPC Funds, Jan de Boer of Promoting the Development of an IMO, David Baker of the International International Convention on Liability Proposals for future unifcation of Group of P&I Clubs and Kiron Khosla and Compensation Relating to maritime law - Lex Maritima of the International Chamber of Transboundary Damage from Ofshore Professor Eric van Hooydonk from Shipping. There were also invited Oil and Gas Activities” (https://www. the University of Antwerp, spoke speakers to discuss the lack of fedcourt.gov.au/law-and-practice/ on CMI’s work - Lex Maritima. The engagement by Central and South national-practice-areas/admiralty/ primary purpose of CMI is the American Governments, with respect admiralty-papers/rares-j-20190930). unifcation of international maritime to the CLC and Fund Conventions. The IMO is presently closed to law. The goal of Lex Maritima Importantly, this session discussed the possibility of developing an is to record those principles of the current status of the HNS international convention dealing with maritime law which are universally Convention, which is relevant to the consequences of blowouts and recognised, but to date have not MLAANZ. Neither Australia or New oil spills from ofshore oil and gas been reduced to writing. One of the Zealand are signatories to the HNS facilities. In His Honour’s view: benefts of a recorded Lex Maritima Convention. To date, eight states will be to ensure that difering “It is only a matter of time before the have signed the HNS Convention, but interpretations of maritime law are world will witness another signifcant only fve states have ratifed (South minimised, particularly with respect to hydrocarbon blowout, spill or leakage, Africa, Canada, Denmark, Norway international conventions. such as occurred in the 2009 Montara and Turkey). In order to enter into and the 2010 Deepwater Horizon Women in today’s shipping world force, 12 countries are required, four events.” of which must each have a merchant The forum was co-moderated by Dr shipping feet of no less than two In 2009, the Montara blowout caused Ann Fenech, vice president of CMI million units of gross tonnage. an oil spill in Australia’s EEZ. The and Ms Liliana Monslave of IOPC ofshore well was owned by PTTEP, Funds. This forum explored women IMO Secretary-General, Mr Kitack and operated by its Australian as catalysts for positive change, and Lim sent the following message to subsidiary, PTTEP AU. The spill discussed what infuence women can CMI delegates: bring to bear on the shipping industry. allegedly caused transboundary “The HNS Convention is the last damage in Indonesian and East Cybercrime and insurance piece in the puzzle needed to ensure Timorese waters. As a result of the coverage issues that those who have sufered damage Montara incident, there is currently caused by HNS cargoes carried a Federal Court hearing before There were speakers in this session on board ships have access to a Justice Yates regarding a private from Canada, USA and Argentina, comprehensive and international class action fled against PTTEP AU and the moderator was Joe Grasso, liability and compensation regime. on behalf of approximately 15,000 chair of the CMI Marine Insurance Indonesian seaweed farmers, who Standing Committee. Cyber risks The number of ships carrying HNS are claiming compensation for loss of from the perspectives of hull, cargo cargoes is growing steadily with more

Shipping Australia Limited Annual Review 2019 83 than 200 million tonnes of chemicals a uniform way which would fnd k) Unmanned Ships traded annually by tankers, and we international acceptance to amend This IWG is the largest within the CMI have to recognize that accidents can the UNCITRAL Model Law on this with 24 members, including Professor and do happen. I urge all states to topic, given the plethora of diferent Nick Gaskell of UQ. An examination follow the example set [by ratifying procedural practices that states is being conducted to consider countries] and consider acceding operate in this area. to the HNS 2010 treaty as soon as the possibility of developing an possible, in order to bring it into e) Polar Shipping overarching convention which might cover all conventions and provide force.” This is one of the most active IWGs, a framework for the regulation and with sub-groups looking at diferent CMI Assembly operation of unmanned ships within areas of international maritime the current international regime. The Colloquium closed with a law to see how relevant they are meeting of the CMI Assembly. The to polar shipping, and what areas Reports were also given by the CMI International Working Groups need reconsideration in light of the Marine Insurance and Rotterdam (IWGs) listed below each gave diferent navigational and operational Rules Standing Committees. Two individual reports. requirements that ships experience in marine insurance projects are a) Acts of Piracy and Maritime polar regions. This IWG utilises the continuing, namely, the impact of Violence skills of young maritime lawyers to sanctions on insurance cover and a assist with research. comparative review of direct rights This IWG reports at each assembly of action against insurers (to assist f) Ofshore Activities on the prevalence of piracy and the in the drafting of future liability jurisdictions or geographical areas in This IWG is closed and CMI is conventions). The status of the which it is taking place. considering how best to further its Rotterdam Rules is that 25 states b) Fair Treatment of Seafarers work, given the lack of enthusiasm have signed the convention, but only (including Pandemic Response and from international regulators at this four have ratifed. The Netherlands Migration at Sea) time. has begun domestic implementation but the local law is not yet in force. The IMO has requested that the g) Ship Finance Security Practices The relevance of the Rotterdam CMI bring to the attention of MLAs, This IWG completed its work last Rules is that it deals with electronic the responsibilities that member year. It essentially considered bills of lading, whereas carriage countries of the World Health whether there was any need or desire Organisation (WHO) have to seafarers of goods by sea liability regimes, for the shipping world to be brought (as well as passengers) of ships when such as the Hague Rules and the under the aegis of the Cape Town there is a world pandemic such as Hamburg Rules, do not. Ocean Convention. It was determined that swine fu, ebola etc. A questionnaire carriers and some governments there was no such need for ships was prepared by Stuart Hetherington are interested in “blockchain” to be brought within its ambit. The during his CMI presidency. This technology and the potential digital group has now been reconstituted to questionnaire has been sent to MLAs transformation of international trade. consider whether containers could or enquiring as to whether national laws There is a potential for “blockchain should be considered as a possible give efect to the requirements of the bills of lading” to be regarded as area for inclusion by way of protocol WHO Convention. electronic transport records under the to this convention. A questionnaire Rotterdam Rules. CMI is considering c) Recognition of Foreign Judicial is in the course of being sent out to how to best progress the work of the Sale of Ships MLAs. Rotterdam Rules. The importance of this work is that h) Liability for Wrongful Arrest Future CMI without a reliable international basis for the recognition of the judicial sale A questionnaire will soon be The next CMI Conference will be held of vessels, buyers cannot be certain circulated amongst MLAs to gain in Tokyo from 20 to 24 October 2020. of obtaining clean title. This results insight into how each jurisdiction Any member of MLAANZ is welcome in lower sale prices and impacts deals with damages for wrongful to attend the conference to observe recoverability for banks/fnanciers. arrest (for example, in our jurisdiction or contribute to the important work of pursuant to section 34 of the The Recognition of Foreign Judicial the CMI. Sale of Ships Working Group has Admiralty Act 1988 (Cth)). prepared a draft convention, which i) Ship Nomenclature has been approved by CMI and accepted by UNCITRAL for further This IWG was created to research the work. It has been allocated to diferences in national legislation of UNCITRAL Working Group VI to the use of words such as “ship” and be developed into an international “vessel”. A questionnaire has been instrument. The ongoing assistance sent to MLAs to assist with this work. of MLAs will be required to respond j) Classifcation Societies to questionnaires received from UNCITRAL Working Group VI, in This IWG has been seeking to obtain order to see this project through to its support from shipowners (without completion. success) to investigate whether other organisations, such as Classifcation d) Cross-Border Insolvency Societies, should be brought within This IWG is being dissolved as it the class of benefciaries to the is not considered feasible to fnd Limitation Convention.

84 Shipping Australia Limited Annual Review 2019 MARITIME LAW AND INSURANCE

Criminal Proceedings As criminal prosecutions for cartel conduct fall under the CDPP’s purview, the ACCC and CDPP have a Memorandum of Understanding to deal with immunity applications in a consistent manner. Grounds for refusing immunity The Immunity Policy provides that the ACCC is unlikely to grant conditional immunity if the applicant applies for it after the ACCC already has evidence that is likely to establish a contravention of the CCA arising from the cartel conduct. Exclusions from the immunity The Immunity Policy only covers cartel Blowing the whistle conduct. It does not also extend to immunity from prosecution for ‘concerted practices’ that have the purpose, efect on cartel cases – plan before or likely efect of substantially lessening competition in the market. you sound the alarm This carve out is critical for persons who are considering making disclosures to the By NATHAN CECIL, partner and REBECCA NIUMEITOLU, ACCC, because cartel conduct may also solicitor, Holding Redlich constitute concerted practices. So, a party could make a disclosure under the belief Cartel conduct is notoriously difcult to ACCC from civil proceedings or the CDPP that it may enjoy immunity, whereas it detect. Cartel participants don’t advertise from criminal prosecution for cartel conduct. actually exposes itself to other proceedings. they’ve fxed prices, restricted outputs, Civil Proceedings Be savvy not sorry rigged bids or allocated customers, suppliers, or territories. Cartels often go For a corporation to be eligible for The Immunity Policy and the CDPP Policy hidden unless uncovered by chance or conditional immunity from civil proceedings, are powerful tools for corporations seeking someone blows the whistle. it must: a clean slate. It appears that a shipping line’s decision • be the frst party to disclose the cartel But before taking the leap, it’s important to call out its partners was a critical factor conduct; to think twice about the implications of in the criminal cartel prosecutions of approaching the ACCC: • admit engaging in, or having engaged Nippon Yusen Kabushiki Kaisha (NYK) and in, cartel conduct; 1. Name your vices Kawasaki Kisen Kaisha Ltd (K-Line). But, that doesn’t mean that you should blow the • not have coerced others to participate in Characterise what contraventions of the whistle without careful planning – as doing the cartel; CCA you may have engaged in. Conduct so without planning might land you in water that contravenes other provisions of the • ceased, or promise to cease, just as hot, or fail to provide you with the CCA may afect your disclosure strategy involvement in the cartel; protection that you seek. and the way you approach cooperation with • provide full, frank and truthful disclosure the ACCC and CDPP, if at all. Why would you blow the whistle? and cooperate fully and expeditiously while 2. It is all in or nothing Incentive for whistleblowing arises in the making the application; ACCC immunity and cooperation policy If you enter an immunity arrangement with • have entered a cooperation agreement for cartel conduct (Immunity Policy) and the ACCC or the CDPP be prepared to go with the ACCC, including outlining what the Commonwealth Director of Public all in. Failure to continue cooperating could and when evidence and assistance will be Prosecution’s (CDPP) Immunity from result in a revocation of the immunity. provided to the ACCC; Prosecution in Serious Cartel Ofences 3. Think big and coordinate policy (CDPP Policy). Each is designed to • maintain confdentiality regarding its short circuit cartel arrangements, with the status as an immunity applicant, the details If your cartel involved overseas stakeholders promise of immunity from civil proceedings of the investigation and any civil or criminal or you have similar arrangements and criminal prosecution. The signifcance proceedings. overseas, you could be asked by the of immunity cannot be underestimated, ACCC to allow for limited disclosure in An initial enquiry is made with the ACCC, when you consider the substantial fnes that these overseas jurisdictions. This could which can be made anonymously, to can be imposed for cartel conduct. result in proceedings against you. It could see whether any other party has claimed also prompt you to consider cooperating For example, the Federal Court of Australia immunity in respect of the cartel. If not, with enforcement agencies and seeking imposed a fne of $34.5 million on K-Line details of the cartel conduct are provided for its criminal cartel conduct. K-Line to the ACCC for investigation. During immunity in those foreign jurisdictions. approached the ACCC under the Immunity the process (and as early as possible) the Policy but was too late to enjoy the benefts applicant should seek conditional immunity. under it. So, what if it had acted sooner? Once the cartel conduct has been fully investigated, and prosecuted and the Nathan Cecil is a partner and Rebecca Niumeitolu How does immunity work? applicant for immunity has cooperated is a solicitor in Holding Redlich’s national Transport, Shipping & Logistics team. Both are experienced in Under the Immunity Policy and CDPP Policy throughout, the applicant is granted fnal advising shipping sector participants on competition law applicants may be granted immunity by the immunity. compliance issues.

Shipping Australia Limited Annual Review 2019 85 MARITIME LAW AND INSURANCE

IMO 2020: emerging challenges

By NARAYA LAMART, senior associate and NIC VAN DER REYDEN, partner, HFW

In 2008 the International Maritime As the shipping world prepares • Is Owner or Charterer Organization (IMO) passed an for the change from a practical responsible for supplying amendment to Annex VI of the perspective, new challenges compliant fuel and which party is International Convention for the are emerging in the contractual, liable for the additional cost? Prevention of Pollution from Ships compliance and safety landscape. 1973 as modifed by the Protocol This will turn on the construction of 1978 (together MARPOL) which Contractual considerations of the relevant terms but other considerations will also include the adopted a new global cap for The 0.5 per cent cap applies to sulphur content in ship’s fuel oil extent to which Owners must comply any fuel oil used on ships. As “fuel of 0.5 per cent (the 2020 Cap). with Charterers’ employment orders oil” includes any fuel “intended for The 2020 Cap, reduced from the (including a direction to stop at a port combustion purposes”, this means previous 3.5 per cent cap, will to stem bunkers), what the bunker that ships will also be unable to carry come into force on 1 January 2020. specifcations are in the relevant non-compliant fuel unless they have contract, and overall obligations as to a scrubber ftted (commonly known legal ftness and seaworthiness. as the “carriage ban”) from 1 March 2020. The upshot is that the Annex • Is Owner required to install VI requirements will impact a broad exhaust gas cleaning systems (i.e. range of contracts throughout the scrubbers)? industry, including both new and existing contracts. The primary obligation is on the shipowner to comply with the 2020 Primary responsibility for compliance Cap but this can be reallocated always rests with the shipowners, under contract. However, in and that position usually refected in existing contracts where this issue Charterparty provisions. However, may not be dealt with specifcally, the costs and risk of compliance can it will often be necessary to fall be allocated under contract. back on more general provisions regarding compliance with laws and For existing contracts which regulations. will continue on, following the implementation of the 2020 Cap, Related questions may then arise such as time charters and contracts as to whether the vessel is of-hire of afreightment, the following sorts of during scrubber fttings, who bears issues may arise: the cost of the ftting and whether

86 Shipping Australia Limited Annual Review 2019 Getting ahead of the curve in the Baltic, Swedish company Neste has invested in low sulphur and biofuels

there is any liability for consequential extent, by the contracting fag Safety – standards of compliant losses. State. Some contracting States, fuel such as Indonesia and India, have For new contracts, there are a indicated they are considering The 2020 Cap must be read in range of new clauses, including the whether to delay enforcement or conjunction with other requirements BIMCO 2020 clauses, which include provide a “grace period”, however, for fuel including the grades, sources, a sulphur content clause (which broadly speaking the majority of composition, stability, quality and requires charterers to supply fuel contracting States have agreed there characteristics, which all have a which complies with both the sulphur is to be no transition period after the potential impact upon the ship’s content regulations and is otherwise implementation date. machinery and equipment. compliant with the specifcations and grades as provided for in the This means that although there will be Accordingly, one of the biggest charterparty, whilst owners warrant some States where low sulphur fuel emerging safety issues is related to that the ship can carry compliant requirements will not be enforced, the supply of low sulphur fuel, in a fuel) and a fuel transition clause ships which operate internationally range of jurisdictions, and the lack of (which requires charterers to supply will be running serious risks if they clarity around the quality of fuel which ships with sufcient low sulphur either burn or carry fuel with a higher will be supplied. fuel onboard, prior to the 1 January sulphur content. 2020 deadline, to allow that ship to In particular, there are questions In Australia, the Australian reach the nearest port where low around the extent to which diferent Maritime Safety Authority (AMSA) sulphur fuel is available). There kinds of low sulphur fuel can be is responsible for monitoring are also an increasing number of co-mingled, as well as concerns compliance with the 2020 Cap, bespoke clauses with built-in bunker regarding the variations in the pursuant to Marine Order 97, which adjustments depending upon price standard of compliant fuels in various is presently being amended. This is diferentials, express deviation for jurisdictions, including variations in: likely to take the form of spot checks viscosity, pour point (wax formation) bunkering compliant fuel and bunker by reviewing bunker delivery reports and fash point for distillate fuels; compliance clauses. but could also, in the future, involve and increased cat fnes for residual Many of these clauses are likely to some new technologies, such as hand-held emissions analysers and fuels. The efects of the variation be tested in the Courts and arbitral in standards, and the co-mingling tribunals in the coming years. “snifer” drones to cover a higher number of ships. of low sulphur fuel oil could lead to Compliance additional cleaning and maintenance AMSA is also considering emerging costs and, in some more serious MARPOL and the Annex VI environmental concerns such as cases, engine failure. obligations will apply in all contracting how, when and where to discharge States (providing they have also wastewater from scrubbers and there It will therefore be important to ensure adopted the annex) and can be may well be further regulation or these issues are considered, and enforced either by the relevant guidelines in this space in the near risks allocated in contracts moving Port Authority or, to a more limited future. forward.

Shipping Australia Limited Annual Review 2019 87 MARITIME LAW AND INSURANCE

Notices of readiness, cancellations and charterparty chains

By PETER MCQUEEN, FCIArb, independent arbitrator and mediator, Peter McQueen Pty Ltd

Validity of NORs delivered This recent decision of the English Cancellation under the Sub-Charter and of cancellations made by Commercial Court deals with Clause 14 relating to NOR stated: parties in a charterparty chain – two appeals from two related Bilgent Shipping PTE Ltd v ADM arbitrations in respect of two voyage “Notifcation of the vessel’s readiness International SARL and ADM charterparties which were NOT in to load at the loading port must be International SARL v Oldendorf identical form. Whilst under both delivered by mail/fax at the ofce of Carriers GmbH & Co KG (Alpha charterparties the notice of readiness Charterers or their agents, between Harmony) [2019] EWHC 2522 (NOR) was to be delivered between 0800 hours and 1700 hours from (Comm) 0800 and 1700 on a weekday Monday to Friday, between 0800 and between 0800 and 1100 on hours and 1100 hour on Saturday, ... a Saturday, and laytime was to Laytime is to commence 0800 hours commence at 0800 on the next the next working day, …” working day after the NOR had been tendered, there was NO express Clause 16 relating to the cancelling provision made for delivery of a NOR date stated: on a Sunday. “Should the Notice of Readiness at The Sub-Charterer cancelled the loading port not be delivered as per Clause 14 by twelve o’clock noon Sub-Charter after which the Charterer on the 31st day of May 2015, the cancelled the Head Charter, the Charterers or their Agents shall at NORs having been delivered before said hour and anytime thereafter, the relevant time on the cancelling but not later than the presentation date, but NOT during the permitted of Notice of Readiness …, have the hours, as they were delivered on a option of cancelling this Charter Sunday. Each Tribunal held that each Party. Charterers to narrow into cancellation was not valid. The Sub- “10” days spread latest in 40 days Charterer and the Charterer appealed advance prior to frst layday.” against the award made against each. The Court noted that: The Court decided that, under the Sub-Charter, the NOR delivered was (a) Clause 16 provides charterers invalid and that the cancellation made with the option to cancel and defnes by the Sub-Charterer was valid and when that option arises, namely when that, under the Head-Charter, the the NOR at the loading port has not NOR delivered was valid and that the been delivered “as per Clause 14 by cancellation made by the Charterer twelve o’clock noon on …”; was invalid. The Court stated that (b) the words “as per Clause 14”, it was concerned with a question of which are “clear and simple” mean construction and that its aim was to that the NOR must be in accordance identify “the objective meaning of with the requirements of clause 14; the language which the parties have chosen to express their agreement”. (c) there is no inconsistency between

88 Shipping Australia Limited Annual Review 2019 Clause 16 and the requirements Laycan into a 10 days spread latest America, the notice of readiness to be in Clause 14, as there is nothing 30 days prior frst Layday…” tendered within ofce hours 0800- in Clause 16 which defnes the 1700 hours Monday to Friday and requirements of a NOR; Clause 17 relating to time counting 0800-1100 hours Saturday. Laytime stated: to commence at 0800 hours the (d) notwithstanding the words “as next working day after valid notice of per clause 14” in Clause 16, it would “(a) Notice of readiness and readiness being tendered…” promote uncertainty if a NOR could Commencement of Laytime. See also Clause 70. be invalid for one purpose, i.e. the The Court was persuaded that the running of laytime, but valid for Notice of vessel’s readiness to load amendments to Clauses 4 and 17 (in another, i.e. the option to cancel; and and/or discharge at the frst or sole Clause17 the standard form ofce hours requirement had been deleted) (e) when charterparties do make the loading and/or discharging port, shall of the Head-Charter were intended option to cancel dependent upon a be delivered in writing or by cable/ to create a diferent NOR regime NOR, as in this case, a failure to give telex/email to Charterers/Receivers from that which applied for laytime those words their ordinary and natural (or their Agents). See also Clause purposes, and that their combined meaning risks causing uncertainty 70. Such notice of readiness shall efect manifested, objectively, an where the parties had endeavoured to be delivered when vessel is in the create certainty. loading or discharging port and is in intention that, for purposes of the all respects ready to load/discharge cancelling clause, there was no Accordingly, the Court determined in case loading/discharge berth is requirement that the NOR was to be that the NOR was invalid and that occupied vessel to be allowed to delivered within ofce hours. therefore the cancellation was valid. tender Notice of readiness whether Accordingly, the Court determined in port or not, whether in berth or Cancellation under the Head- that the NOR was valid and that the not, whether customs cleared to not, Charter cancellation was invalid. whether in free pratique or not. Clause 4 relating to laydays and In conclusion, the Court noted that Following receipt of notice of cancelling stated: the reason for the diferent results readiness to load or discharge as in the two appeals was that the two “Laytime for loading, if required above, laytime will commence at charterparties were not on back to by Charterers, not to commence 0800 on the next working day, after back terms. before 0001 on 01st day of April/ the valid notice of readiness has been May 015. Should the vessel’s notice tendered and hold passed, laytime to This decision highlights the wisdom of readiness not be tendered and commence to restart at 0800 hours of parties, which are in the middle accepted as per Clause 17 before on Monday or the day following a of a charterparty chain, checking for 2359 on the 30th/31st day of April/ public holiday…” the consistency of terms in each of May of 2015, the Charterers or their their charterparties, in particular when Agents shall at any time thereafter, Clause 70 relating to NOR and laytime stated: consideration is being given to the but not later than one hour after validity of NORs delivered and to the the notice of readiness is tendered, “Loading port: making of cancellations. have the option of cancelling this Charterparty. Charterers to narrow If loading at East Coast South www.petermcqueen.com

Shipping Australia Limited Annual Review 2019 89 MARITIME LAW AND INSURANCE

The contract provided that the charterer could declare force majeure for loss Force Majeure in resulting from “accidents at the mine or Production facility”. There was no dispute that the dam collapse fell within this defnition, but the charterer faced shipping contracts two key difculties, neither of which it was able to overcome.

By RYAN HUNTER, solicitor and JOE HURLEY, Partner HWL The frst was that it was not clear Ebsworth that the charterer ever planned on carrying out the contract. This was a long-term contract of afreightment, Force majeure clauses are ubiquitous and complexity of a contract, parties but the charterer had avoided its last in shipping contracts. Although may choose to suspend the entire two shipments due to a shortage of they are usually introduced as a contract, or just the obligations directly demand. The shipowner claimed that boilerplate provision, parties are afected, or even terminate the contract the charterer would have done the same regularly concerned about how to upon a force majeure event being again regardless of the dam collapse. manage a clause which might give established. their counterpart an opportunity to The Court of Appeal agreed. Although escape from their promises, while Parties should be careful to be clear emphasising that the answer will turn on also protecting themselves from the about what parts of their bargain they the wording of the contract in question, risk of disaster. intend to suspend or terminate. A storm force majeure clauses (including this in Sydney this week probably should one) usually refer to loss or damage Force majeure clauses deal with events not allow a party to escape from fulflling “resulting from” the event. The party beyond the parties’ control that they are the next shipment in six months’ claiming force majeure must be able to aware could occur and, if they do, will time. Because force majeure clauses establish that “but for” the event, they make performance impossible. Force would have fulflled their obligation. majeure is a creation of the parties’ afect otherwise absolute obligations, contract. Therefore, its operation will courts will construe ambiguous clauses Secondly, the charterer could not depend on the words of the contract. narrowly and contrary to the party who show that it had fully attempted drafted them. Delineating cause and to fulfl its obligations by seeking There are three key questions the efect is therefore especially important. “alternative methods” of performance. parties will need to address in so The charterer had discretion about crafting a force majeure clause (or, more Thirdly, how should the afected party which port it nominated to ship cargo likely, adapting their lawyers’ template notify the other of the force majeure from, including ports away from version). event? If a party intends not to fulfl the mine collapse. Where there are its promise under a contract, the other unafected means to perform, the party First, what is a ‘force majeure event’? party will generally expect to be notifed The contract should address events must attempt to perform by those quickly and with sufcient particulars which would be catastrophic to the alternatives. It is not enough that there of the event. If the contract is to be contract, or part of it, such that neither is a settled practice of shipping from suspended, the parties will need to party would expect their obligation to one supplier at one place. know how long the event is likely to continue. Some will be applicable to any contract, such as strikes or war. continue for. Shipping contracts must deal with the Others will be particular to the contract wide berth of perils which can arise Notice requirements might also allow at sea and on land. Force majeure in question. For example, a contract for for the termination of the contract after the shipment of iron ore could expressly clauses remain the simplest method a certain period of time, where the force defne the failure of a particular mine as of managing uncontrollable risks. majeure event cannot be resolved. a force majeure event. However, parties should remain focused Some of the risks in establishing a force on what obligations can, or should, Force majeure clauses can expressly majeure event were seen earlier this continue in the face of disaster. exclude risks which should be priced into a contract, such as changes in year in the United Kingdom Court of the market price of the goods being Appeal decision of Classic Maritime Inc shipped. In any event, courts will v Limbungan Makmur Sdn Bhd [2019] usually not assume that a force majeure EWCA Civ 1102. clause intends to capture foreseen perils There, a charterer claimed force majeure which are not referenced in the clause. against a shipowner, after the collapse Secondly, what impact will the force of the Fundão tailings dam in Brazil majeure event have on the parties’ meant they were unable to supply iron obligations? Depending on the length ore for delivery from Brazil to Malaysia.

90 Shipping Australia Limited Annual Review 2019 MARITIME LAW AND INSURANCE

When should a freight forwarder issue a house bill of lading?

By HARRY KONG, claims executive, Thomas Miller (Australasia) Pty Ltd

The question of ‘whether to issue been released to a third party by the goods. a house bill of lading?’ for a ocean carrier. consignment should be evaluated with Consequently, CRO were held to be careful consideration at all times, as ACFM was able to successfully sue CRO liable for the loss sufered by ACFM. for the full recovery of the drawdowns on a good business practice for freight The lesson to be learnt forwarders. This will mitigate risks of the grounds of misleading and deceptive potentially large exposures, as we are conduct. Whilst the issuing of house bills of lading reminded in the case of Cro Travel v What went wrong? as a business practice should not be ACFM1 discarded, freight forwarders should In this case, the ocean carrier issued never issue a house bill of lading when Facts a set of ocean bills of lading that were they do not have control over the release “original” and “negotiable” and named of the cargo at destination; especially This recent New South Wales Court of the consignee as “to Order” (Ocean when the ocean bill of lading issued by Appeal decision upheld the previous Bills). the ocean carrier is negotiable. judgment in ACFM v Freight Solutions2 where the freight forwarder was held to CRO issued a set of house bills of A defning feature of a bill of lading is have acted in misleading and deceptive lading that were a close replica of the that it constitutes a document of title conduct when issuing house bills of Ocean Bills, also being “original” and for the related goods. Thus, it must be lading, whilst simultaneously releasing “negotiable” and named the consignee capable of obtaining delivery of the cargo ocean bills of lading, both of which as “to Order” (House Bills). The House it relates to, when they are presented to purported to be original negotiable Bills were signed by CRO “as agent for the issuer or their authorised agent. documents. the ocean carrier”. Furthermore, freight forwarders must CRO Travel Pty Ltd (CRO) (formerly Furthermore, CRO released both the not sign house bills of lading “as agents known as Freight Solutions (Vic) Pty Ltd) House Bills and the Ocean Bills to of the ocean carrier”, unless the ocean was a freight forwarder servicing ASSH; ASSH. ASSH provided ACFM only with carrier has granted express authority to a shipper in the business of exporting the House Bills. The Ocean Bills were do so. Such representation implies the animal skin and hides. ASSH entered apparently used by a third party to take lawful holder of the house bill of lading into a loan agreement with Australia delivery of the cargo from the ocean has an action against the ocean carrier. Capital Financial Management Pty Ltd carrier. If the ocean carrier has not granted (ACFM), whereby ASSH would provide authority to the freight forwarder, the ACFM with original bills of lading as The court held the House Bills ocean carrier will have no liability, and collateral security in exchange for themselves to be misleading and the freight forwarder will be liable for any drawdowns on the loan. It was intended deceptive for the following reasons: losses associated with the reliance on that ACFM would return the original • CRO did not have authority or the representation. bills of lading after ASSH had repaid the consent from the ocean carrier to sign of drawdowns. Should a freight forwarder fnd as their agents, themselves in need of issuing a house In the course of applying for a • CRO released into the world two sets bill of lading, it is important to ensure drawdown, ASSH provided ACFM with of bills of ladings (House Bills and Ocean the ocean bill of lading is non-negotiable eleven house bills of lading issued Bills) both to be original documents with and remains in possession of the freight by CRO. When ASSH failed to make title to the goods, forwarder (or their receiving agent), thus the repayments, ACFM attempted to ensuring the freight forwarder has control take possession of the goods, only to • The House Bills did not give the over the release of the cargo by the discover that the goods had already lawful holder a right to delivery of the ocean carrier.

1 Cro Travel Pty Ltd v Australia Capital Financial Management Pty Ltd [2018] NSWCA 153 2 Australia Capital Financial Management Pty Ltd v Freight Solutions (Vic) Pty Limited [2017] NSWDC 279

Shipping Australia Limited Annual Review 2019 91 EDUCATION AND TRAINING Australian Maritime College

Shipping emissions – meeting new standards

By DR VIKRAM GARANIYA, associate head, Research and Global, Australian Maritime College

One container ship can emit almost standards will reduce the maximum that an earlier date would have the same amount of pollution as allowed level of sulphur in fuel from resulted in the detention of many 50 million cars, and yet, shipping 3.5 to 0.5 per cent, which alone could ships, crippling Australia’s export and emissions are often overlooked. prevent more than 570,000 premature import industries. Here’s how researchers plan on deaths by 2025. We don’t like to tighten the screws curbing this serious source of These major changes cannot for companies that are not ready. In global pollution. be achieved merely by tweaking the shipping industry, change takes Sulphur dioxide and nitrogen oxides or tuning engines, but require time. Ships need time to travel and (NOx) are some of the nastiest revolutionary changes on-board organise downtime, their schedules pollutants found in emissions from ships, costing millions of dollars and are at least a year in advance. ships. Global shipping contributes requiring the vessels to be out of Fuel used in shipping is often ‘dirtier’ about 15 per cent of all human- action for considerable periods. than other regular fuels. After caused nitrogen oxide emissions, This is a big change, but we are extracting crude from the earth, contributing to acid rain that afects ensuring that it is carefully managed. refneries strip things like diesel everything from vegetation to and petrol out of it – whatever is in humans. And research has now AMSA regularly contracts the demand – and what’s left goes into recently found that a single container Australian Maritime College to get shipping. ship can emit almost the same research done in order to get specifc amount of chemicals associated with answers. We are the national institute That’s why it’s not the best in terms cancer and asthma risk, as 50 million for maritime research, education, of its combustion characteristics. It cars. and training, so we are able to guide even contains heavy substances like AMSA on what’s best for Australia. bitumen (asphaltenes). Often they If you’re producing nitrogen oxides We are proactive in bringing have to keep it warm all the time or it close to a populated place, then emissions down, but at the same will jam the pipes – it’s really sticky. people will have breathing issues. To time we are providing technical inputs combat this oft-ignored source of air Yet, per tonne moved, shipping is as to what’s right and appropriate for pollution, our team at the AMC have more economical and produces far Australia. been working with the Australian fewer emissions than moving cargo Maritime Safety Authority (AMSA) to Change takes time by road or air, so it’s important determine how best to introduce new, that the industry survives into the At times, research has resulted cleaner air standards for ships. future. in recommending a particularly In Emission Control Areas (called cautious approach – even extending You can move a big load of cargo in ECAs), it’s estimated that these new the deadline for some of these new an economical way, so the amount of NOx standards, which go into efect emission targets by up to fve years. pollution is very low. in 2021, will result in an 80 per cent For example, AMC recommended Ships are getting bigger too. The reduction of NOx emissions by ships, delaying the introduction of the new largest ship we have now can take below year 2000 levels. NOx standards in ECAs from 2016 to 21,000 containers, with each 20 foot In addition, in 2020, new world 2021, because our studies indicated (609cm) container holding 15 to 20

92 Shipping Australia Limited Annual Review 2019 tonnes, and the demand for shipping One method is selective catalytic • New standards for NOx emissions is increasing every day. reduction, in which urea or ammonia will result in an 80 per cent reduction can be injected in the exhaust gas, of NOx emissions by ships, below Taking the smarter approach causing a chemical reaction that year 2000 levels. Sulphur emissions can be reduced by reduces the NOx levels. Another • The largest ships in the world can changing to low-sulphur fuels, but our method is called scavenging air take 21,000 containers, with each 20 research showed that Australia does moisturising, in which the intake air is preheated to 70°C with a high foot (609cm) container holding 15 to not have an adequate supply of these 20 tonnes. fuels. We only have a small number humidity, which can also reduce NOx of refneries in Australia, so when we production. have to implement these changes, The AMC will continue helping the we will mainly be relying on overseas shipping industry in fnding other suppliers. ways of reducing emissions, such as relying on shore power when in port, To reduce sulphur dioxide emissions, rather than keeping the marine fuel ships can use cleaner fuels such generators going. as LNG (liquefed natural gas), but many Australian LNG bunkering It’s a ‘slowly but surely’ approach to infrastructures are still under the future, but for an industry based Dr Vikram Garaniya is a Course Coordinator for construction. on that philosophy, it’s looking like a the BEng (Marine and Ofshore Engineering) perfect ft. program. His main area of research is in NOx emissions, on the other hand, marine fuels and ship emissions. Vikram Key facts: has published over 25 papers in scholarly aren’t generally caused by problems journals and conferences. Recently he led in the fuel, but by high temperatures • Global shipping contributes a team which received a US$60,000 grant in the combustion process. As a 15 per cent of all human-caused from the International Association of Maritime result, there are various technological Universities. Vikram’s research interests include nitrogen oxide emissions. chemical and thermal engineering related areas, methods that ships can introduce to such as combustion science, computational fuid meet the new, improved standards for • In 2020, new world standards will dynamics, modelling of engines, mathematical NOx emissions. reduce the maximum allowed level of modelling, evaporation, pyrolysis, thermal sulphur in shipping fuel from 3.5–0.5 cracking, coke formation, soot burnout. Heavy There are seven diferent technologies per cent, which could prevent more fuel oil and continuous thermodynamics are his main areas of interest. He also has a very keen that can be used, but each ship has than 570,000 premature deaths by interest in chemical process optimisation, and to work out what’s best for them. 2025. safety and reliability of such systems.

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Shipping Australia Limited Annual Review 2019 93 NAVIGATION OMC International

Shipping – an ancient activity in a modern world

By DR TERRY O’BRIEN AM, executive director, OMC International

A signifcant development in the cargo translates into less fuel used per there is a potential shortage globally modernisation of the Australian shipping voyage. In the past year, with respect of IMO compliant fuel. The question industry is the news that bigger bulkers to Australia’s iron ore exports from the is, can Australia guarantee availability and tankers with a draft of up to 12.5 Pilbara, OMC’s DUKC® has reduced for 100 per cent compliance when 100 meters can now transit the international the fuel costs by an estimated US$130 per cent of requirements are imported? waters of Torres Strait, which has been a million and the C02 emissions by There are other options available such bottleneck in this vital shipping route for 1.2m tonnes. Fuel prices will play an as Liquifed Natural Gas (LNG) but with the Asia–Pacifc region. A key outcome increasingly signifcant role in the rise of the limitation that the fuel storage area of measured transits conducted on Rio shipping rates, as around 60 per cent of needed onboard will reduce cargo space. Tinto bulk ships carrying bauxite from a ship’s operating costs is fuel. Rising Another alternative is an exhaust gas Weipa to Gladstone, is that in July 2019 fuel costs mean rising freight rates. This cleaning system (Scrubbers) ftted to AMSA provided a blanket exemption for issue has been a recurring theme in ships using non-compliant fuel. all bulk carriers and tankers to transit 2019, as a change from high sulphur fuel up to a draft of 12.5 metres. Ships can to a low 0.5 per cent sulphur fuel will Deputy PM visits OMC safely sail deeper than the maximum be an IMO compulsory regulation from In February 2019 Australia’s Deputy draft of 12.2 metres, the previous January 1, 2020. limit allowed by AMSA. The Under Prime Minister, the Honourable Michael Keel Clearance Management (UKCM) Preparing for the IMO sulphur limits McCormack, MP, visited OMC‘s technology developed by OMC can presents a challenge to all shipping, as Melbourne ofce and watched a predict under keel clearance accurately in a region with complicated tides, strong currents and a hard rock bottom. The increase in draft limit will enable Rio Tinto to ship the same volume of cargo through the Great Barrier Reef on ten less ships per year, with signifcant environmental and economic benefts (>$10 million). AMSA, Rio Tinto and OMC have successfully worked together to enhance both the safety and productivity of shipping through this ecologically sensitive area. Meanwhile trials of Maersk container ships through Torres Strait are ongoing, with a view to the possible extension of the draft limit increase to container shipping through the Strait. Preparing for IMO 2020 fuel sulphur limits In addition to economic benefts, Jason Rhee, Honourable Michael McCormack, Peter O’Brien and bringing in ships deeper with more Dr Terry O’Brien observing a live DUKC® demonstration

94 Shipping Australia Limited Annual Review 2019 demonstration of the latest upgrades to its fagship technology the DUKC® system. He was very supportive of the increasing need for such dynamic cutting-edge technology in a digital world of fast-paced technological change. DUKC® Series 5 upgrades The treacherous waters of Port Phillip Heads are one of the world’s most hazardous and challenging places for large ships to navigate, with complex tidal regimes, heavy swells and strong currents in its approach channel. To enhance safety, the Victorian Ports Corporation (Melbourne) has now upgraded to OMC’s latest DUKC® Series 5 technology in readiness for the increasing size of vessels visiting Australia’s largest container port. The previous Series 4 system has been the The restored Vasa operational UKC management system frst port in the world to use DUKC® nine bulk carriers and 101 lives were for the approach channels to the port of technology for container vessels, and its lost at sea due to ships capsizing from Melbourne for the past decade. pioneering use in Australia was also seen cargo liquefaction, including as recently As part of the Series 5 upgrade by the CEO “as an important innovation as 2019, in which a vessel and 25 crew process, extensive full-scale validation by Fremantle Port.” OMC acknowledges members were lost in Indonesian waters. the invaluable support provided to our measurements and trialling of the system Despite an IMO warning and improved for container ships, tankers and bulk staf over the many years by former knowledge, these recent reports suggest carriers were undertaken under a wide harbour masters, Captain Eric Atkinson the liquefaction risk has not gone away. range of environmental conditions. OAM, and Captain Allan Gray. It is suggested that the loss of a bulk The DUKC® Series 5 roll-out during 2019 Why did the Vasa ship sink? carrier in 2015 with the loss of 18 lives, continued with the latest port to upgrade Ship stability remains a delicate balance may have been caused by liquefaction of being Bunbury, where an earlier DUKC® between gravity and buoyancy. Ensuring a cargo of bauxite. Clearly, the solution version was frst installed in 1996 and the stability of ships has for centuries lies in minimising the moisture content was still in use. The Bunbury Series 5 been a challenging task, as the following of fne-grained materials such as nickel, upgrade in 2019 is signifcant for OMC story illustrates. bauxite and iron ore, before loading as it illustrates that the original Series 1 onto ships and using smart technology core engine of the DUKC® system has, Almost 400 years ago the Swedish-built onboard to detect critical moisture levels, over the intervening years, continued to ship Vasa left the docks of Stockholm which may lead to liquefaction and ofer the safety benefts for which it was harbour on its maiden voyage. Only potential capsize. initially installed. Even though it is now 1300 metres into its voyage, a light almost unrecognisable when compared gust of wind toppled the ship over on Where conditions at sea are challenging, to the latest generation DUKC® systems, its side. As water fooded through the traditional instruments for measuring Series 1 refects 25 years of on ongoing gun portals, it sank within 20 minutes ship motions could be dangerous for research, development and innovation. in the waters of Stockholm harbour and engineers or crew to mount onboard. A new implementation of the latest lay there forgotten until 1956. A long So, prompted by fatalities due to generation DUKC® S5 system, installed process of restoration led to it being liquefaction, in 2012 OMC unveiled a for the port of Lyttleton in July 2018, displayed in a specially built museum new instrument, iHeave, developed in- became the fourth system operating in in Stockholm as a reminder to future house by its research and development New Zealand in December 2018. generations of the importance of ship team. This instrument can be easily stability calculations. carried onboard and set up on the bridge Port of Fremantle Celebrates It is now a widely accepted theory that in minutes; data on ship motions can With the arrival of the Encounter Bay the capsize of the Vasa was due to a then be transmitted by cloud-based on 28 March 1969, Fremantle became design/construction failure in that the Internet to OMC’s Melbourne ofce. the frst Australian port to receive upper level of the ship was built wider Where waves are of concern, pilots an overseas purpose-built container than originally planned, which led to can also use iHeave to measure and ship. The ofcial opening of the port of a change in the centre of gravity and display the exact amounts of heave, Fremantle Container Terminal took place reduction in stability. roll and pitch, which their vessels are on 29 March 1969. It was the frst port in experiencing prior to or during their Ship Motions and Liquefaction Australia to witness the global container transits along port approach channels. revolution and celebrated its 50th Another factor afecting ship stability OMC has recently miniaturised its Anniversary this year. Chris Leatt-Hayter, is the weather conditions at sea, iHeave instrument to facilitate its wider CEO of Fremantle Ports, in an ofcial particularly the motions of roll and use on ships at sea, as well as in port publication celebrating this milestone, pitch in rough seas, which can convert approaches. wrote that “it was a shipping industry cargoes such as iron ore, nickel and innovation that had its early doubters yet bauxite from a solid to liquid state - a The sinking of the “Vasa” ship is a was to prove revolutionary on a global process known as liquefaction. It has cautionary tale for those designing and scale”. In 1997 Fremantle became the been reported that from 2009 to 2018, testing new technologies.

Shipping Australia Limited Annual Review 2019 95 PILOTAGE Port Phillips Sea Pilots

Maximising efciency at the port of Melbourne

By CAPTAIN MIKE HANSON, managing director, Port Phillip Sea Pilots

The port of Melbourne is one of Australia’s (current limits, weather limits, trafc largest container ports, with over 2.9 million management, tug requirements), detailed TEUs handled annually. With the constant passage plans developed and Portable rise in throughput, the push for maximising Pilot Units (PPUs) upgraded to meet the the cargo lift per ship is ever increasing. rigorous demands of manoeuvring these The port of Melbourne is the pinch point large ships within the confnes of the Yarra of the Australian container ports, with a River. treacherous port entry through the Rip and This detailed planning and collaboration restricted manoeuvring area in the Yarra has resulted in the safe transit of the River, Swanson Swing Basin and Dock and following ships up river to Swanson Dock: of course, a bridge that doesn’t get any higher as time goes by. When it comes to Maersk Skarstind – 300 metres x 48 metres container ships, Australia has mostly been - 9472 TEU, MSC Elma – 300 metres x 48 the receiver of hand-me-downs from other metres - 9411 TEU. global services, with many of these vessels MSC Tianjin and GSL Ningbo, sister ships now being scheduled into the Australian at 323 metres x 42.8 metres – 8,063 TEU, trade lanes, putting increased pressure on and the largest of them all, the MSC Rita at the port of Melbourne to facilitate these This year has also seen regular visits from 324.85 metres x 42.8 metres – 8,089 TEU. ships. a larger class of vessel into VICTL, the new At some point in the near future, we may container terminal at Webb Dock terminal, Port Phillip Sea Pilots have been actively very well see the frst vessel of over 10,000 including vessels of the new AES/NEMO involved in the risk analysis, procedural TEU. development and necessary simulations service, where CMA CGM and MSC have to make the transit of these ships through This is of course, by comparison to when formed a joint service, one of which was the port a reality. Dozens of simulations Swanson Dock was constructed in the the Le Havre at 336.7 metres X 45.6 - 9,572 were required to evaluate the limits for tidal late 1960’s, where ships of 227 metres TEU, with many other similar ships in streams at the entrance to Port Phillip. (Encounter Bay class) were deemed to be excess of 334 metres. Also included were weather conditions the largest foreseen. Then we moved to This year saw the upgrade of OMC for manoeuvring, the hydrodynamic the 248 metres (Resolution Bay etc.) class, International’s Dynamic Under Keel efect on other ships in the river and safe 281 ( P&O Nedlloyd Botany – Albatross) Clearance programme to Version 5, vessel clearances in the dock. From the class, and then the 292 – 294 metres bringing both Melbourne and Geelong simulation data, procedures were refned Maersk Gironde class. onto a common platform, and integrating PortWeather, giving pilots access to all relevant metocean data. PPSP worked closely with OMC to customise the software to meet the pilots requirements. After over 180 years of providing pilotage, the Port Phillip Sea Pilots have risen to the challenges faced by the port and have been actively involved from the conceptual phase through to the capacity maximisation of the port, thereby ensuring the safe and efcient transits of the largest ships ever to enter the port.

96 Shipping Australia Limited Annual Review 2019 Port Phillip Sea Pilots, 180 years of pilotage in the ports of Victoria.

Dependable ON DEMAND service providing the experience and expertise expected in today’s modern shipping industry.

Innovation in technology, Safety Management and Bridge Resource Management to ensure the continuation of the safest, highest quality service to every one of our customers.

Partnering closely with our customers both ashore and onboard to re-conceptualize pilotage based on a “Shared Mental Model” incorporating detailed passage plans and advanced Master Pilot Exchange. Port Phillip Sea Pilots Pty Ltd 9 - 11 Blackwood Street (PO Box 150) North Melbourne Vic 3051 T 03 9287 6500 • F 03 9326 6052

www.ppsp.com.auShipping Australia Limited Annual Review 2019 97 PILOTAGE Brisbane Marine Pilots

The development of pre-arrival passage planning

By Captain PETER LILEY, managing director, Brisbane Marine Pilots

The Master Pilot Exchange (MPX) available on our website. It was supplied the pilot previously, would has long been the stalwart of the thought that the Ship’s Bridge Team monitor the vessel’s passage plan Pilotage Passage Planning process. would utilise this information and be with enthusiasm, diligence and pilot A number of key requirements were better prepared for the MPX. challenges, as requested by the pilot always requested, including: in the MPX. The uptake was less than expected. • Ensure the courses on the chart We knew Bridge Teams were hungry After years of reviewing and testing as the same as the Passage Plan, and enthusiastic for the information routes, the Brisbane maritime • Plot the ship’s position and profered, but technology limited authorities settled on channel inform pilot when approaching the the ability for fast, secure wireless boundaries, and these were waypoints and state the next course, data transfer. However, ships on published on AHO charts. The • Inform the pilot of any concerns return transits using the routes pilotage of the port of Brisbane that may impact on pilotage. The range of responses received impacted greatly on the quality of the MPX. Of course, 10 years ago, most navigation was performed using a paper chart. Due to the scale and a less than ideal understanding of position fxing, it was difcult to monitor the ship’s progress with critical accuracy. In some instances, the Bridge Team were monitoring the ship’s position on the Pilot’s PPU and not using the ship’s charts, radar or ECDIS. Brisbane Marine Pilot’s Safety Management System identifed this as a risk. To assist in mitigating this risk, BMP drafted a Pre-Arrival Sheet that included the BRM expectation and a list of waypoints across the bay and up the river. This list was provided to Brisbane shipping agents with the expectation that this would be forwarded to arriving vessels. The information was also publicly

98 Shipping Australia Limited Annual Review 2019 Celebrating 30 years of Brisbane Marine Pilots

When Brisbane’s frst marine pilot was appointed, he did not know that Brisbane would one day become Australia’s largest capital city port. It is the responsibility of our marine pilots to protect the Port, its visitors and its ecosystems.

Our services include training and providing marine pilots 24 hours per day and 365 days per year. We also provide expert advice on maritime matters and regularly review the Port’s navigation and logistics systems.

Being a marine pilot in Brisbane is a particularly challenging and unique role for a number of reasons. The Port of Brisbane is a unique combination of sea, bay, river and berth pilotages.

Safety remains the number one priority for Brisbane Marine Pilots and we continue to invest in world-frst initiatives to maintain our excellent safety record.

Our pilots are a close-knit team of dedicated maritime professionals, who have developed a collegiate culture of safety, expertise and excellence, whilst always considering the commercial pressures on a busy international trading port.

We are proud to live by our values every day.

Safety Service excellence Collaboration Integrity

In everything we do, We leverage our proven Close collaboration Doing what’s right safety is our priority knowledge, systems drives safe, effective for our staff, our and expertise to provide partnerships clients and the Port excellent service

Brisbane Marine Pilots, Suite 2 Argyle Place, 14 Argyle Street, Albion QLD 4010 Phone: +61 7 3624 6500 | Email: [email protected] | brisbanepilots.com.au Brisbane Hamilton Hamilton Hamilton Cruise Terminal No 1 No 3 No 4

164m LOA 245m x B32 368m 50 m 329m 153m 156m 255m 144m

Leading lights 108° - 288° T max 2.5kts 62.5m 106m 62.5m astern 181m HAMILTON 1 6 6 m REACH Shoulder leads

4m 80m 36

34 mFace of CXFOB No 1 No 2 Swing Circle 280m Diam

RAN Forgacs Cairncross Wharf Drydock Fitting out Berth BSL

BRISBANE CRUISE TERMINAL to QUEENSLAND BULK TERMINAL

RAN Wharf

s er lead Lea WO Should T ding - 256° 6 ligh 30m ts 076° 2.5m ts 1 ng ligh 08° Leadi ads - 28 30m ulder le 8° T Sho 60m 0m Sh 3 ould er l 30m ead T s 151m 2° QUARRIES REACH - 24 2° 06 hts g lig din Lea

Queensland Bulk Terminal Maritime Safety Queensland Transport and Main Roads Map E58-24 on 10 October 2019

became a well monitored and pilot can expect no challenge from We have been grateful for P&O executed maritime evolution. the Bridge Team. The bay pilotage Australia’s assistance as we trial this would be well monitored by including work on the Pacifc Dawn and Pacifc The question remained, however, was an XTD limit and an Operational Limit Aria. These concepts are not specifc the current range of equipment and that alarmed as the ship approaches. to cruise ships and should translate technology being used to its fullest This is an enhanced route monitoring to all vessels arriving in the port of extent? How is the ship’s passage form of navigation that does not rely Brisbane. really being monitored? on the Safety Contour being the limit The full presentation article To properly monitor the ship’s or the grounding limit. can be found on our website progress using ECDIS or PPU, The Operational Limit can also be www.brisbanepilots.com.au relevant XTD limits needed to be set extended to defne the boundary and alarmed when exceeded. around the manoeuvring area. This After much discussion, planning is another proposed concept, the and ongoing testing, BMP proposes Operational Manoeuvring Area the introduction of an Operational (OMA), as we have found that route Limit Line. This is a line defned monitoring does not adequately by the pilot organisation’s Safety monitor the ship’s progress through Management System as a practical the swing and the approach to the limit beyond which no ship would wharf. be taken in normal operating We consider ourselves very fortunate circumstances. to have built a long-standing With this in mind, we can respond to relationship with P&O Australia, the challenge of ensuring both pilot particularly when it comes to pilot and Bridge Team are using the same and Bridge Team interaction. Our plan and prescribed limits. current systems and testing all began with a conversation with their ship’s The designation of the Planned masters and Mike Drake in 2005, as Navigable Corridor (sometimes to “best practice” in the way forward referred to as the Comfort Zone) is in handling these ships. the area within the XTD in which the

100 Shipping Australia Limited Annual Review 2019 TOWAGE

Engage Marine – 2019 review

By MARK MALONE, chief executive ofcer, Engage Marine

Engage Marine was established in 2017, on a vision to lead change in the marine industry and subsequently set out to achieve this. The last 12 months have cemented this aspiration, with several key achievements that demonstrate Engage Marine’s commitment to leading change, delivering competition within Australian ports, and ultimately ensuring both clients and ports receive high quality, efcient towage services. Following the successful entrance into Tasmania, Sydney and Geelong in 2018, our subsidiary Westug commenced the operational implementation of the long-term contract as an alliance with Kotug, for Fortescue Metals Group (FMG) in Port Hedland, early in 2019. The implementation stage saw the successful engagement and establishment of nine newly formed crew partnerships, the recruitment and selection of a dedicated shoreside team, the handover and acceptance of nine tugs and associated onshore infrastructure, and the setup and preparation of the tugs and shoreside facilities for the commencement of towage. On 5 September, the frst bulk iron ore carrier was successfully berthed Wales, while on passage from Kalamu a successful salvage, ensuring nearby ports at Herb Elliot Port and operations ofcially (Congo) to Brisbane, with 150 million litres and Australian trade could continue to commenced. The further development of Nigerian crude oil onboard. operate as normal. and continuous improvement of the Port Hedland operations will be a key focus in The closest accessible ports of Port With the conclusion of a successful 2020 and beyond. Kembla and Port Botany were unable to and productive 2019, Engage Marine accept the vessel due to its size, and a will continue working with its strategic On the east coast of Australia, Engage decision was made to tow the vessel to partners to further lead change in the Towage (a harbour towage JV with Smit Brisbane, some 500 nautical miles away. way marine services are delivered in Lamnalco) continued to strengthen its The journey, which was the longest and Australia. The Engage Marine Group is presence in Sydney and Geelong, through largest tow in Australian waters in over two committed to providing the highest level improving our market position and also decades, took 28 days and was performed of service in each of its operational ports, commenced operations in Port Botany, in in often extreme weather conditions, with by delivering solutions that are best suited addition to Port Jackson. winds reaching over 60 knots and swells to individual customers and specifc local in excess of 14 metres, during the salvage A signifcant milestone for Engage Towage port requirements. This commitment, operation. in 2019 was the successful salvage of the along with ongoing collaborations with fully laden 274 metre crude oil carrier, the The project was a testament to the highly port authorities, stakeholders and other Densa Whale, in May. The Densa Whale qualifed and experienced crew involved, operators, are fundamental to Engage had lost all main engine power and was who were able to navigate and overcome Marine’s aim to lead change in the fully immobile of the coast of New South challenging conditions to efectively deliver Australian marine services market.

Shipping Australia Limited Annual Review 2019 101 STEVEDORING AND LOGISTICS LINX Cargo Care Group

Why diversity is a business imperative

By ANTHONY JONES, group chief executive ofcer, Linx Cargo Care Group

Logistics and shipping have been, for women. In 2017 we became a founding awards and recognition, it is humbling to the better part of two centuries, male sponsor of Wayfnder, which focuses on be recognised for pushing our business dominated. And in that time the sector attracting women into operational roles in and industry to new horizons and making has not shifted much beyond adopting the supply chain and logistics sector. a diference in areas which are core to our various technologies here and there, to values. make the sector slightly more efcient. It’s a start, and it’s no coincidence that in that time we’ve grown our business and We believe there should always be a The world is fully connected and globalised, become more agile, safer and innovative. mandate to innovate, and the best way to and businesses within the industry need to do so is to enable a melting pot of ideas. At the 2019 DCN Australian Shipping and adapt with the times. The industry must This philosophy is backed by research, Maritime Awards, we not only sponsored continue to evolve its thinking around hiring which reveals that inclusive teams make the Women in Shipping and Maritime practices and, specifcally, around women better decisions in 87 per cent of cases. in their workforces. Logistics Award for the second year, an award we proudly helped introduce in 2018 But the world continues to lag behind Hiring women is not diversity for diversity’s to the DCN awards programme, we were on diversity – and in Australia, we may sake, it’s been proven that diversity is also highly commended in the Gender be going backwards. Worldwide, while paramount to fostering creative thinking Diversity Award. It’s clearly a key focus women make up half the population, they and for staf morale. It ofers a pathway for our organisation and something we will are responsible for just 37 per cent of to take an organisation into an era of continue to push in 2020. GDP. Further, the Australian Institute of innovation and, without question, business Company Directors released a report which growth. In 2018, we introduced virtual reality safety training, which immerses our staf shows the rate at which women have been Research into the benefts of diversity into environments and situations they appointed to boards has fallen from 45 per validate these statements. A study by otherwise wouldn’t experience. Following cent in 2018 to 31.7 per cent in 2019. the Boston Consulting Group has found the training, our staf are more aware of We may think the world has come a long that diversity increases the bottom line for potential hazards and poor practices that way, but more can be done to ensure we companies. It looked at 1,700 diferent lead to unsafe conditions, and as a result see more balance in the workplace – and companies across eight countries and we’ve seen a 71 per cent improvement found that companies with a more diverse this is not restricted to the logistics and in hazards reported, and a 32 per cent shipping sectors. management and staf, have 19 per cent increase in safety engagements conducted. higher revenue due to innovation. Additionally, we can now house the training Diversity is not just about ensuring more Further, McKinsey research shows that in a virtual training room with participants women are given the opportunity to join companies ranking in the top quartile of from all over the country or world, rather the team; more importantly, it’s about executive-board diversity in the United than site by site. This means deployment pro-actively enabling a workplace with a States, were 35 per cent more likely to is quicker and more consistent than site- broader mix of capabilities and, importantly fnancially outperform the industry medians. based training for numerous employees. for any business, mindsets. If it comes The adaptability and portability of virtual down to a bottom-line argument, well, the I can say that, as a group of companies, reality safety training is designed well for research is clear that diversity is not only a we are determined to do more to increase our diverse and dispersed operations. path to innovation, but a path to business diversity in our ranks. Since 2016 we’ve growth. increased our female workforce from 10 per In November 2019, we were honoured to cent to 14 per cent, and 26.4 per cent of win the 2019 Safety Award for our Virtual This is why diversity needs to be seen as a management positions in the LINX Cargo Reality Safety Training platform at the leadership imperative for businesses keen Care Group of companies are now held by industry awards. While we don’t do it for to evolve and stay ahead.

102 Shipping Australia Limited Annual Review 2019 Helping economies grow and customers prosper.

We enable sma!er trade to create a be"er future for all.

Shipping Australia Limited Annual Review 2019 103 STEVEDORING AND LOGISTICS Patrick Terminals

Patrick Terminals: the year of milestones

By MICHAEL JOVICIC, chief executive ofcer, Patrick Terminals

2019 was a signifcant year for both Patrick Terminals was founded in May terminals, at four strategically located Patrick and the Australian shipping 1919 by Captain James R Patrick. ports along the Australian coast. industry, as Patrick Terminals Patrick Terminals commenced Patrick Terminals has a rich celebrated 100 years since James business as the Patrick Steamship history and strong knowledge of Patrick began operations on the Company Ltd., operating a cargo the Australian waterfront, having Australian waterfront. vessel out of Sydney, servicing the built a reputation for continuous east coast of Australia, with calls to improvement, technological Newcastle, Launceston, Devonport advancement and productivity and Brisbane. Over the course of the increases. The history of the past 100 years, the Patrick Terminals organisation was recognised business has evolved to become and celebrated by customers, Australia’s leading terminal operator, employees, descendants of Captain employing over 2,000 people and James Patrick and friends of the operating some of Australia’s most organisation, on 16 May 2019, at the technologically advanced container Australian Maritime Museum, Sydney. Throughout 2019, Patrick Terminals has been leading the way, handling some of the largest vessels to ever visit the ports of Brisbane, Sydney, Melbourne and Fremantle. The organisation continues to invest in efciencies and improvements to operation, with signifcant investment in the latest ZPMC cranes that will be commissioned at both Fremantle and Melbourne terminals in quarter one of 2020. The new cranes weigh over 1200 tonnes and stand 104 metres high, with the boom up. The cranes will have longer booms than previous cranes and enable new Panamax type ships with 19 containers wide on deck, to be serviced. During August, construction commenced for new ‘on-dock’ rail infrastructure and new rail equipment at Patrick Terminals – Sydney AutoStrad. The $190 million project funded by NSW Ports and Patrick Michael Jovicic, Annie Patrick, Neil Patrick, Ken Reed, Maurice James, Terminals, will increase ‘on-dock’ Donna Woodhill and Jamie Woodhill rail capacity at Port Botany, deliver

104 Shipping Australia Limited Annual Review 2019 Maersk Skarstind arriving into port of Melbourne

improved turnaround times, and ensure dominated industry. The organisation a sustainable supply chain to meet is committed to building a culture that the future trade needs of Sydney’s focuses on representation of women growing population and increasing rail at all levels of the organisation. The demand. The project aims to increase Women in Logistics WILpower cadet the rail capacity of the Patrick Terminals programme is currently supporting ten – Sydney AutoStrad from 250,000 to 1 females within the organisation, on an million TEU per annum, and reduce the accelerated development pathway. In increasing number of trucks on roads. May 2019, Patrick Terminals appointed Importantly, Patrick Terminals has Australia’s frst female terminal manager, continued to focus on promoting Rita Antranik to the Patrick Terminals – diversity in a traditionally male Fremantle team.

Ground breaking in August 2019, with Patrick Terminals and Rita Antranik, terminal manager, Patrick NSW Ports project teams Terminals – Fremantle

Shipping Australia Limited Annual Review 2019 105 STEVEDORING AND LOGISTICS Victoria International Container Terminal

Five years in Melbourne

By ANDERS DØMMESTRUP, outgoing chief executive ofcer, Victoria International Container Terminal

The past fve years have been and ensuring the alignment of all rail lines consolidate their feet. VICT monumental for the Webb Dock tracks. is able to service up to 12,500 TEU precinct. The Port Capacity vessels, along with Brisbane and VICT has made a signifcant Project (PCP) was an initiative from Sydney ports. This encourages the investment in capital and the Victorian State Government as shipping lines to bring their larger strengthened Victoria’s economy by a means to fully utilise Webb Dock building a fully automated container vessels to Australia, boosting the and accommodate for Melbourne’s terminal, the total project came to national trade. container and automotive trade AUS$650 million. This has created VICT was developed to increase by adding more capacity to the jobs, upskilling the workforce competition in the Australian port. Port of Melbourne is one of and employed workers from the stevedoring market. The concept of Australia’s largest ports, handling collapsed automotive industry. This a fully automated container terminal 2.93 million TEUs annually and is level of automation provides a safer one of the top four container ports is to deliver a safer, consistent, workplace with less damage to cargo predictable and improved accuracy in the southern hemisphere. VICT and equipment. enters the market as the third in operation, and result in faster stevedore in the port of Melbourne. VICT welcomed its frst commercial turnaround period of imported and vessel in March 2017, and has exported cargoes. The increased Back in May 2014, Victoria reached several milestones in the efciency boosts the economy of International Container Terminal short time of operation. Australia by enabling more efcient (VICT) won the tender to build an transport of goods. automated container terminal. One in particular was for Construction began in December of sustainability, VICT voluntarily Over the past fve years, I am that year, with a vision to build the registered to pursue an Infrastructure proud of what the team at VICT most advanced container terminal in Sustainability Council of Australia has achieved. There have been the world. (ISCA) rating and achieved two of the signifcant improvements on vessel highest possible rating categories of and truck turnaround times, in Therefore, VICT partnered with “Leading” for both VICT’s sustainable addition to the investments made to industry leaders AECOM (designer) design and build. improve the general port operation. and BMD (contractor) in order to This year the equipment wash bay construct the container terminal, VICT is located on the bay side of the West Gate Bridge and is in was constructed, which recycles 97 delivering it ahead of time and under per cent of water, laser guides were budget. Working together with these the optimum location for the larger vessels now coming to Australia. installed on the quay cranes to assist teams to overcome a number of the larger vessels while berthing, challenges, VICT was recognised VICT is not restricted by the height of the West Gate Bridge or the and all of the terminal lighting was by winning the national Australian small turning basin. This has been upgraded to focused LED that allows Engineering Excellence Award in recognised by the shipping lines and us to virtually eliminate any light spill 2018. Some of the challenges in September 2018, VICT welcomed to our neighbouring areas. include the operational tolerance the frst +8,000 TEUs vessel at the of the 20 Automatic Stacking VICT is the future of the port, we have port of Melbourne – and in December Cranes (ASCs), which imposed tight invested in new technologies to be 2019 we saw the frst 9,900 TEU restrictions on the vertical and lateral the most advanced container terminal vessel serviced at VICT. displacements of rail foundations, in Australia and continue to make the highly compressible marine clay The larger vessels are now cascading improvements to ensure longevity underlying the entire project area, to Australia, as the world shipping and efciency to the port.

106 Shipping Australia Limited Annual Review 2019 C

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VICT. The future of the port.

Webb Dock East, Melbourne, Australia www.vict.com.au Shipping Australia Limited Annual Review 2019 107 SUPPORT AND INNOVATION The Merchant Navy War Memorial Fund Ltd

Most of the 1939’s Australian merchant Merchant seamen of war feets and their management, had lived through the Great War of 1914-1919. So, when the prime ministers of the times - Robert Menzies in 1939 and John Curtin in - our ‘unsung’ heroes 1941 - announced that Australia was at war, respectively with Germany and then Japan, the twenty (22) ship-owning companies By DAVID FIELD, chairman, The Merchant Navy War ‘stepped-up’, and so did their mariners. Memorial Fund Ltd These were not easy times for seafarers; they were not ‘sworn’ members of The Merchant Navy War Memorial Fund, Australia’s armed forces, as often as not has sought the support of the shipping they sailed dangerous waters without naval and maritime industry in delivering on our escort, they were ‘signed-on’, usually on Vision Statement: a voyage-by-voyage basis, they were not To ensure that the Australian Merchant Navy put into uniform, their pay stopped (at least “A title emblazoned in battle and honoured in the early part of the war) when their ship in freedom” was sunk, and they risked imprisonment if they refused to sail when a ship’s job is recognised as an important part of was available. In certain operational areas Australian Maritime History and social they were paid a War Risk Bonus, which culture. marginally supplemented their modest rates and Primary Objective: Troops and RAF equipment crowded aboard of pay. Honouring the memory of Australian Empire Star in the evacuation of Singapore, Australia’s war time Prime Minister, John Merchant Navy Mariners who gave their 12 February 1942 Curtin, acknowledged the role of the lives in service to their country in World merchant navy when he said: Wars I and II, and giving thanks for those well of the loss of life and ships during The merchant navies of the United Nations that were able to return to their families. WWII. Blue Star sufered heavy losses, with 29 ships sunk: a total of 309,390 are constantly in the fghting line. Silently, I was recently asked ‘why my passion (GRT). They included all the fve Luxury efciently and without fuss they carry on for the ongoing recognition, respect and liners, and two Empire ships that the the unending task of keeping the fghting commemoration?’. Whilst, not being a company was managing for the Ministry men and supplies moving. The men of merchant mariner, I had a 40 year career of War. Another 16 vessels, including our merchant navy have established a high spread between my appointments with the three more Empire ships under Blue Star tradition and the Australian Government Swire Group/China Navigation and Blue management, were seriously damaged. By warmly acknowledges the great part they Star Line, in Australia and overseas. Two the end of hostilities, only 12 “Star” ships are playing in the war efort. important outcomes for me, were a very remained in the feet. Those killed were 646 So, what do we owe to these Australian high respect for all those who serve on Blue Star personnel, 272 passengers and vessels on the sea lanes of the world and 78 Royal Australian Navy gunners tasked to men who served in the war at sea last secondly, the knowledge of the number of operate the small-calibre guns ftted for self century? We owe them more than we vessels, and ofcers and crew, of which defence. can ever repay. These tough sailors, both companies sufered loss, in war time. who served under the Red Ensign, held The Australian merchant navy were a Australia’s and the world’s future freedom Having spent the last 20 years of my vital part of how the allied cause won the in their hands for nearly six years, and shipping career with Blue Star Line, I know Second World War they never let go their grip. Below are the words of one of their shipmates, a former THE AUSTRALIAN COMPANY MERCHANT NAVY FLEETS DURING WWII merchant seaman paying tribute to those who died at sea with their ships: Adelaide Steamship Company James Patrick & Company Limited They need no dirge, for time and tide fll all Australasian United Steam Navigation John Burke Queensland Proprietary Limited things, with tribute unto them. Company The warmth of a summer sun, the calm of Australian Shipping Board McIlwraith McEacharn Limited a quiet sea, the comforting of night, the Broken Hill Proprietary Company Limited Melbourne Steamship Limited generous soul of nature and the power of a seabird’s fight. Burns, Philp & Company Limited Newcastle & Hunter River Steamship Co Blow golden trumpets, blow mournfully for Limited all the golden youth and shattered dreams Colonial Sugar Refning Company Limited North Coast Steam Navigation Company that lie where God has lain his quiet dead Limited for all the world to see, upon an alien ocean bed. HC Sleigh Company Limited RW Miller & Company Limited Wherever they lie, may they all Howard Smith Limited State Shipping Service of WA rest in peace. Lest We Forget. Huddart Parker Limited Tasmanian Steamers Visit www.mnwmf.com.au Illawarra & South Coast Steam Navigation Co Wm Holyman & Sons Pty Limited or contact, David Field, chairman, 0414 900 393 James Paterson & Company WR Carpenter & Company Limited [email protected]

108 Shipping Australia Limited Annual Review 2019 The Merchant Navy

A PROJECT OF RESPECT AND RECOGNITION Picture taken Sunday 20th October 2019 following the Ofcial Unveiling of the New & Remedial Works to the Merchant Navy 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 sacrifced 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.

THE MERCHANT NAVY WAR MEMORIAL FUND (MNWMF) PROJECT DEVELOPMENT FUND The fund has been developed as an ongoing entity to fnancially support one of our Prime Objectives… ’To ensure the greater recognition of the vital role undertaken 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. Our aim in all that we undertake is to ‘Make a diference’.

PROJECTS UNDERTAKEN BY THE MNWMF • Completion in October 2019 of the extensive New & Remedial 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 identifcation 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 • Developing strategies on how best to address achieving appropriate national approvals for the addition / inclusion of the Merchant Navy Logo / Badge on War Memorials throughout Australia • Working with the National Flag Association (ANFA) to (I) achieve a closer alignment of National Flag Day & Merchant Navy Day, both of which are 3rd September each year and (II) achieve greater prominence of the Merchant Navy Flag

For more information: www.mnwmf.com.au

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

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).

Shipping Australia Limited Annual Review 2019 109 SUPPORT AND INNOVATION Serco Asia Pacifc

Serco Defence continues to service the marine services sector

By CLINT THOMAS AM CSC, managing director, Defence, Serco Asia Pacifc

Acquisitions and contracts NSBU employs over 1,000 people and practical skills critical to their specialisation helps defence forces design, maintain and as Bridge Warfare Ofcers. This includes Serco Defence continues to have a positive support their ships and submarines. navigation (including astronomical presence in the marine services sector, in navigation), ship driving, leadership and both Australia and New Zealand, as the The acquisition of NSBU extends the global bridge resource management, using range of contracts and service oferings capability and scale of Serco’s defence simulator training. have increased over the year. business, which includes a strong history of supporting Australian Defence Force Working with Navy on our feet marine In May, Serco Asia Pacifc welcomed maritime vessels around Australia. Since services contract Serco Group plc’s acquisition of the Naval 1997, Serco, through the Fleet Marine Systems Business Unit (NSBU) from Alion To ensure Serco Defence’s ongoing Services contract, has provided fexible and Science & Technology, in the United States. commitment to the RAN is achieved, we cost-efective maritime vessel operations, have changed our business structure, with NSBU is a leading provider of naval design, with a qualifed mariner workforce to meet the introduction of a new leadership team systems engineering, as well as production the needs of the Royal Australian Navy that is drawn from a unique mixture of and lifecycle support services to the US (RAN). Navy, US Army and Royal Canadian Navy. commercial maritime and Royal Australian Serco Asia Pacifc chief executive, Mark Navy veterans. Irwin, said the acquisition added to the Serco’s commitment to the delivery of experience and skills that had been second to none maritime services, within developed in Australia over the past 20 the FMSC, continues with the accreditation years. of the Register Training Organisation that “We look forward to continuing the ongoing delivers training services for both the support we provide the Australian Defence Serco employees and members of the Force and welcome this new capability RAN. Whilst acknowledging our past, that has been added to our Group Defence we continue to look to the future with an programme, which can be utilised across increased scope and introduction of the all our global divisions.” national traineeship. In New Zealand, Serco Defence’s newest Utilising the support of the Serco UK contract provides a team of highly qualifed FPMSC tug masters, the RTO has created and dedicated specialists to support an indigenous ASD tug master training RNZN Bridge Warfare Ofcer training. course. The establishment of this course This contract is similar to Serco’s Training has allowed management to identify the Support Services contract, which has future masters and leaders of the business, provided these services for the Royal and embark upon an AUS/UK training Australian Navy (RAN) at HMAS Watson in continuum, that will continue to train and Sydney, since 2012. RNZN ofcers have grow defence tug masters. previously travelled to Sydney to take In addition to this, Serco has maintained its part in this training but now this will be commitment to safety and the adherence undertaken by local New Zealanders. to the environment in which it operates, The contract requires Serco to work in with the Lloyds accreditation of ISO 9001, partnership with the RNZN over the next 14001, and 55001. Supporting this overall fve years, in developing training systems, commitment is the establishment of the solutions and courseware that enable AMSDO Serco programme, which is now ofcers to learn both theoretical and entering the introduction phase within the Julie Latimore, operations manager, Darwin

110 Shipping Australia Limited Annual Review 2019 MV Besant, submarine search and rescue for the RAN business and is designed to meet the Navy which include a Self-Propelled Water Fuel age or gender. requirements of seaworthiness. Lighter, tug boats, transfer vessel, consort and landing craft, which are maintained Being one of only a handful of tugboat Australian Antarctic Divisions - Antarctic and operated by 19 personnel. This role Masters in Australia. Her hard work and Supply and Research Vessel (ASRV) RSV services the operational needs of Defence determination to succeed has led to Nuyina and has presented new challenges for receiving achievements within the industry and, ultimately, led to being named a fnalist Serco Australia was delighted to announce Julie, and allowed her to develop in a new in August 2019, the appointment of professional aspect. in the ‘Rising Star’ category of the recent Defence Connect Industry Awards. Captain Scott Laughlin and Captain Paul She commenced her career in the Royal Clarke, who will lead the alternating crews Australian Navy in 2001, gaining her In her role she takes command of tugs operating Australia’s new icebreaker, the primary qualifcation as a Bridge Warfare and support vessels to manoeuvre RAN RSV Nuyina. Ofcer, then later specialising as a ships and visiting navy ships in and around Joining the Hobart-based Serco team, both hydrographic surveyor. In 2008 she moved Darwin harbour, dealing with all types of captains come to the role with experienced to the Ofshore Oil and Gas industry, situations, including extreme weather, tides track records working in the Southern becoming a Dynamic Positioning Ofcer, and currents to ensure high value naval Ocean. and working mainly on construction vessels assets are docked, moored, refuelled, conducting ROV, ridged and fexible maintained and replenished safely and Scott has completed more than 50 voyages pipeline operations. securely. to Antarctica. As captain of Australia’s current icebreaker, RSV Aurora Australis, for Alicia Pollock Being qualifed as an ASD tug master has over 10 years, Scott is familiar with the cold Alicia has been with Serco Defence since always been a goal of Alicia’s, and she and challenging conditions of the Southern 2011, and is a valuable role model for is now the frst female ASD tug master Ocean. Paul also has extensive experience young females, showing that it’s possible employed at Serco, and one of the very in the Antarctic, having spent 11 years to be successful in traditionally male- few females employed in the industry in working for the British Antarctic Survey dominated industries, regardless of your Australia. and undertaking more than 20 voyages to Antarctica. Scott is pleased to be continuing his work in the icy southern waters. “The Southern Ocean is a captivating place to work,” he said. “There is nothing more satisfying than successfully transiting through the roaring ‘40s, howling ‘50s and screaming ‘60s, sighting the sea ice edge before crossing hundreds of miles through the ice to conduct science operations or to resupply one of the Australian Antarctic stations.” Paul is looking forward to returning to the Southern Ocean. “This is an amazing opportunity with Serco and the Australian Antarctic Program to deliver world- class support for their polar and science operations,” he said. “I very much enjoy the type of ice navigation challenges, research and survey work that will be undertaken on the Nuyina.” Serco feet marine services profles - women on water Julie Latimore Julie commenced as operations manager with Serco Defence Darwin, in September 2019. Managing a small feet of vessels Tug master, Alicia Pollock

Shipping Australia Limited Annual Review 2019 111 CONTAINER MANAGEMENT 1-Stop Connections

Digital disruption in Australia and the global logistics industry

By MICHAEL BOUARI, chief executive ofcer, 1-Stop Connections

As more and more organisations making relies on three key factors: 1-Stop’s solutions report: and business leaders are talking 1. Business Process Automation • Importers, exporters, freight about ‘Digital Transformation’, (BPA): any operator that uses forwarders, transport operators and ‘Digital Disruption’ and ‘Digital technology to tap into the benefts terminals have gained more certainty Density’, it’s important to know that of business process automation is in how they operate and can rely while these three phrases all mean immediately improving their planning on consistent and efcient truck something diferent, in a business processes. turnaround times and service levels. sense all three matter to the future and growth of a business and the 2. Operational Engagement (OE): • Truck turnaround times reduced economy. in ports and terminals there is a clear from 91 minutes to 37 minutes. advantage that arises for terminals A study on Digital Density by that invest in a port wide vehicle • Terminals moved to auto gates Accenture Strategy, reveals that booking system e.g. Vehicle Booking with complete validation that includes Australia ranks eighth out of 17 System (VBS). container, truck registration, drier and leading economies, with a score of time zone booking. 52.7 out of 100. Plus, they predict 3. Port Community Insights (PCI): that “increasing Australia’s digital use data and insights to improve and • Terminals in South East Asia density by 10 points can boost GDP optimise business. experienced a 20 per cent increase in truck servicing and a 30 per cent by $34.5 billion.” These key factors ft into the decrease in dwell times in the frst 2 three factors mentioned in Digital Transformation must start weeks of operations. Terminals are Accenture’s study, and when they from the top. Executives and seeing benefts in terms of efciency, all are incorporated into a terminal’s board members need to push and transparency and fow, and the approach to planning, managing, promote the change and reassure all ripple efect of these is reaching into and optimising for continuous employees that digital disruption is a industry and congestion benefts for improvement, the benefts can be way forward for themselves and the Manila. organisation. realised. • The import and export community Investing in digital technology is 1-Stop has shown the global logistics industry the benefts of implementing is able to clear cargo more quickly critical for businesses to ensure they through a community payments are keeping up with the modern day, technology solutions, that while it may have been disruptive at frst, all platform that links to shipping and this is no diferent in the logistics line and terminal systems for the sector. users beneft from efciency gains. Many opportunities now exist to immediate release of cargo. We recently reported that the rate collaborate, improve efciency and We are actively ensuring ‘Digital of innovation and adoption is reduce administration hours, which Transformation’, ‘Digital Disruption’ accelerating and will likely continue in turn also helps the economy by and ‘Digital Density’ keeps us to do so. Decision-makers need boosting productivity, saves money moving forward. We ensure that technologies and solutions to support and integrates all port operators (sea, our technology and the products we this rapid and accelerating change to port and land operations). are providing to our customers will help them make good decisions. The results are clear. Port always be innovative and world class Regardless of where a business communities in Australia, New that sees not only us grow, but makes is today, the evolution of decision Zealand and the Philippines using our clients grow and expand.

112 Shipping Australia Limited Annual Review 2019 SEE CONNECTIONS SEE OPPORTUNITY

Port of Newcastle is your partner in growth, with better performance, reduced delays, lower costs for importers and exporters, and unconstrained access to dedicated heavy freight rail.

• Third largest port in Australia, with capacity to double its trade volume • Direct berth-to-rail capability with connections to the national heavy rail network • A deepwater channel that can handle more than 10,000 ship movements per year • Diverse cargo handling including coal, bulk liquids and fuels, containers, project cargo such as rail and wind turbines, wheat, fertiliser, steel, cement, meals and grains • Portside land ready for development • Storage availability

Find out more

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