Interconnect July 2018 - Voted Best Seaport In Oceania - Ports of Auckland
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Interconnect July 2018 CONTENTS 2 Ports of Auckland Focus Ports of Auckland Focus 4 Better use of space: A couple of events have When the tap was turned back on, New Vehicle Booking System dominated the year so far. One we had a new problem to deal with business rules go live bad – the Brown Marmorated – record import volumes. With a Stink Bug, and one that small land area we don’t have much 6 Multi-Cargo and stink bugs should be pretty good – our storage space so vehicles had to be from Japan taken off the port quickly to avoid the 30-year Master Plan. whole system getting clogged up. I’d 8 Sustainability Focus The stink bug issue has been a real like to thank everyone in the supply challenge for us and I know it’s been chain, from trucking companies to 10 Working together with a really hard time for the vehicle compliance centres and many others PortConnect importing supply chain. We’ve had who have pulled out the stops to to deal with extended processing keep things moving 24/7. 11 Award winning staff time for ships, with knock on delays for other vessels causing queues in In a way, this is a sign of things to 12 Supply Chain updates and the gulf, with up to six or seven ships come. As cargo volumes increase Nexus Logistics waiting at anchor at times. Others across the port, pressure on our land have been harder hit, with some in area will increase and the supply 14 Market RoundUp the trucking industry, compliance chain, for all cargoes, will have to centres, dealers and others facing move to greater use of weekends Front cover photo: Working for Auckland 24/7 significant hardship as the flow of and nights to avoid congestion. Back cover photo: The Marine team at Ports of Auckland beat the sun up on their way to meet vehicles temporarily dried up. While efficiency at the port and in the a vessel We hope that the new system put in supply chain is essential, the stink by MPI will lead to a more predicable bug issue has also highlighted the process and prevent any future need for more infrastructure in the interruptions to the supply chain, general cargo area of the port. The while at the same time keeping this good news on that front is that after dangerous pest out of the country. several years of vigorous debate on the issue, Auckland Council recently On the positive side, the whole endorsed our 30-year Master Plan, industry has pulled together to keep including several key projects for the things moving, and I would like to general cargo wharves. thank all those who have helped, particularly in dealing with the surge First up is the construction of a car in imports after the initial interruption handling building on Bledisloe Ro- of supply. Ro Terminal. We will seek resource 2
Master Plan Timeline Start removal of old Bledisloe JULY 2018 container cranes Apply for consent for the car MID 2018 handling building New cranes for Fergusson Container OCTOBER 2018 Terminal delivered LATE 2018/ Apply for consent for new Bledisloe EARLY 2019 North Wharf Car handling building construction starts EARLY 2019 New cranes on Fergusson commissioned MID 2019 Waikato inland freight hub operational Fergusson Container Terminal LATE 2019 automation goes live Completion of Fergusson BY 2020 Container Terminal expansion Tony Gibson, CEO Ports of Auckland 2020 Channel and berth deepening Public park (on top of car Auckland consent for this later in the year and aim to start construction in WITHIN 5 YEARS handling building) New engineering workshop Council recently early 2019. This building will give us additional car handling capacity WITHIN 10 YEARS New head office endorsed our and enable several other projects: a new Ro-Ro berth on the northern WITHIN 10 YEARS Removal of part of Shed 51 and Bledisloe B1 Wharf to accommodate larger ships at B2 Wharf 30-year Master end of Bledisloe; the removal of part of Shed 51 and B1 wharf to allow Marsden Wharf removal and Plan, including reconstruction of Bledisloe South Wharf WITHIN 10 YEARS bigger ships to berth at B2; and the to create third Ro-Ro berth removal of Marsden Wharf to allow several key the creation of a third Ro-Ro berth at Bledisloe South. 10-15 YEARS Fergusson North Wharf extension timing dependent on shipping needs projects for the We really appreciate the support our TIMING TBC Hotel Rail grid automation general cargo customers and cargo owners have given us as we’ve developed the wharves. 30-year Master Plan, and we look forward to delivering it for you.
Interconnect We are on a journey towards partial automation. Within the next 18-months A-Strads (automated straddles) and automated gates will be in place at Fergusson Container Terminal. In preparation for this, we’ve made changes to some of our processes in advance. One of these changes is to the Vehicle Booking System (VBS), used by trucking companies to book time slots to pick-up or deliver containers at the port. We first introduced the VBS in 2007, to improve the flow of trucks through the Ferguson Terminal. Over the past year we’ve been in consultation with the trucking industry and subsequently we introduced several changes to the VBS in May. We have removed the old system of using templates, which made time slots available for trucks to call at the port, but not necessarily at the times they wanted or needed. With Automated straddles, pictured in the back, will handle all receivals and deliveries at the truck grid this manual use of templates in the system, we found that at times some Changing business process is never The changes have highlighted that companies were keeping bookings easy and we acknowledge that there there is an increasing need for but not using them, which meant we have been some teething problems upstream and downstream supply had little visibility over which slots while the new VBS rules are bedded chain partners to communicate were going to be used or not, making in. We want to thank all those their demand more proactively, it difficult to effectively manage the affected for the understanding and so logistics providers can more demand as we would like. patience as we improve a number of optimally manage their operations. these processes, ahead of the gates The removal of templates means In time, we believe digital platforms and processes becoming automated. there is greater transparency of slot and the likes of blockchain will help availability, which will help us to We are committed to driving with these processes. We will keep better manage ‘no shows’ or efficiency and will continue to fine working closely with all involved. ‘wasted slots’. tune the processes where we can.
Multi-Cargo Overview Multi-Cargo and stink bugs from Japan New Zealand’s car industry faced significant challenges with the discovery of the Brown Marmorated Stink Bug (BMSB) on board inbound vessels, causing a cascading effect to all aspects of the New Zealand car trade We faced a significant Zealand. This resulted in several since its infestation, wiping out challenge earlier this year, PCC’s, carrying 8,300 vehicles being fruit trees and crops. With a high as we worked with partners turned away from New Zealand, reproductive rate, they are easily able to stop the introduction of leaving customers and the industry to invade other regions and cause Brown Marmorated Stink Bug waiting weeks to be able to pick up (BMSB) to our shores. The further damage. their vehicles and machinery. arrival of stink bugs caused Farmers across North America delays in car volumes across Managing bio-security risks is of increased their use of pesticides in the port. This affected our paramount importance to us. We berth and yard capacity and response and this lead to an increase all know that the introduction of a many key stakeholders, new animal, plant or insect species in production costs and reduced especially dealerships. profitability. In some cases, such as could have devastating effects on our An infestation of the stink bug had horticulture and agriculture industry. organic farms, there was nothing that the potential to become a large The BMSB has had devastating could be done to stop the damage uncontrollable problem for New effects in Europe and North America caused by the stink bug. 6
Interconnect We worked closely with the Ministry for Primary Industries (MPI) and fumigators during this time, adhering to strict bio security conditions. We kept in close contact with our customers to ensure the optimal approach was taken to clear vessels and cargo as promptly as possible. We utilised all berths for the fogging treatment, including our newest berth Fergusson North, which was still a construction site when the idea was floated. It’s a real testament to the interdepartmental coordination and team effort that allowed us to successfully pull this off. It did not go unnoticed that the first vessel that berthed at our new container terminal berth was actually a Pure Car Carrier (PCC)! Due to the co-operative attitude from Ports of Auckland, MPI, customers’ and fumigators’ delays were minimised as much as possible. A Pure Car Carrier (PCC) is the first vessel to berth on Ports of Auckland’s new container terminal berth Allocating Bledisloe Wharf for the denied vessels allowed for other low be a very reactive operation, and “There is a lot to learn from the stink risk vessels to work around them. look forward to returning to normal bug issue. The industry working operations. group, formed at the start of the Ports of Auckland Multi-Cargo Manager Spencer Brown said “The “We dispatched 122,959 cars and situation, remains dedicated to team worked diligently and closely 1,620,068 tonnes in break bulk the collaborative engagement that with customers to ensure that between November 2017 and April helped us all through this demanding there was enough wharf capacity 2018. We would like to thank our time and ensures that we are all for PCC’s and cargo to use during customers for working with us and better prepared if a similar incident the stink bug issue. Following the embracing the ever-changing health happens in the future, that we can stink bug incident, we continue to and safety requirements. handle it more efficiently.”
Sustainability Sustainability Focus Ports of Auckland has set a target of becoming New Zealand’s most sustainable port, with zero emissions and ‘net positive’ energy by 2040. Ports of Auckland have an The World Ports Sustainability To reach our goal of zero emissions ambitious goal to become zero Program was launched in March 2017. by 2040, we have implemented emissions by 2040. Recently we The program is based on the United an emissions reduction plan. The became the first New Zealand Nations Sustainable Development strategy for reducing emissions is port to be audited and verified by Goals and is designed to enhance CEMARS® (Certified Emissions to first improve energy efficiency and coordinate future sustainability Measurement and Reduction and then implement further efforts of ports worldwide and Scheme). This accreditation renewable energy and zero emission recognises our actions and shows foster international cooperation with technologies. Examples are that we understand the carbon partners in the supply chain. We have had two of our sustainability projects delivering zero-emission technologies liabilities of our business. We have put in place management recognised by the World Ports for container handling equipment and plans to reduce emissions in our Sustainable Programme including; harbour fleet vessels, installing solar organisation and more widely zero emission by 2040 and the DC panels on office buildings to provide throughout the supply chain. Microgrid research project. alternative sources of energy. 8
Interconnect Efficiency improvements at Ports of Auckland are being implemented through behavioural changes, upgrades of assets to more energy efficient options, and through research projects. Behavioural changes will be achieved with training and by leveraging the port’s improved data analytics capability. The data analytics team is turning data from the project into useful information that can be used to raise awareness, and readily measure and manage operational efficiencies at the port. We are committed to developing partnerships to achieve zero emissions, including EECA, the Energy Efficiency and Conservation Authority in New Zealand. Through this partnership we have delivered a port-first of LED floodlighting, which is expected to reduce electricity Ports of Auckland and the University of Waikato are working together on a pilot program to establish a DC Micro Grid for buildings at the port and its freight hubs consumption by 7%. We are working closely with the The collaboration with the UoW will We also have a target of sending University of Waikato (UoW) and help us use more sustainable energy zero waste to landfill by 2040. To do together are working on a pilot systems and enable us to reach our this we have implemented a new programme to establish a DC (direct goal of zero emissions by 2040. waste management plan with high current) micro grid for buildings and staff engagement, a number of which We are developing this into a pilot the port’s freight hubs. have volunteered to run projects to programme which we hope will be Traditionally houses and offices used more widely at the port and be monitor waste and decrease waste have been wired for AC (alternating introduced to other New Zealand sent to landfill. The programme current), where solar panels produce businesses and even homes. This has already diverted more than 40 DC (direct current) energy, which could save up to 10% of energy, tonnes of recycled office and general needs to be converted to AC before which is currently lost during the DC waste from the landfill since its it can be used. to AC conversion process. implementation in March this year.
PortConnect Review Working together with PortConnect PortConnect is a joint venture between Ports of Auckland (POAL) and Port of Tauranga (POT). PortConnect is New Zealand’s first joint online cargo management system and provides direct interaction with container movements from both POAL and POT, including Dan Cowie, General Manager PortConnect its inland ports. PortConnect employs five full time equivalent employees and has offices …future movements. Monthly meetings take place with POAL and POT to at both POAL and POT. growth for create solutions for logistical and operational problems. This is a unique arrangement between two ports in New Zealand PortConnect “PortConnect has been a toddler to work together to create solutions and efficiencies for shipping will only be since it was created, running around learning the basics such lines, trucking companies, freight forwarders and supply chain limited by our as walking and talking, what to do and not do. The company is networks. vision for future currently entering its teenage years, “Being owned by the two largest sea port terminals in New Zealand gives functionally expanding its horizons and pushing the boundaries, we are gaining an us the ability to look at investments understanding of what we are good that would be out of scope as PortConnect collates several at and we are excited this will bring. individual businesses and has different data streams including The support that we have been given allowed us to broaden our ability to container number, weight, isotype, by both POAL and POT indicates achieve efficiencies within the supply destination and vessel. Exporters, that future growth for PortConnect chain” says Dan Cowie, General small or large, can check on freight will only be limited by our vision for Manager of PortConnect. location, clearance status and vessel future functionally.” 10
Interconnect Brent is doing an A-Class job Brent Harsant has what he describes as ‘the best office in the world’. He has been in the Marine Team at Ports of Auckland for the past 15-years and doesn’t plan on changing this anytime soon. With a background in boat building and endless opportunities in Award winning staff the sector, it was a natural fit for Brent to take his passion to new levels. He started by captaining passenger ferries, he then got his skippers’ ticket and then oversaw the design Left to right: Michelle Smith, Diane Edwards and Eddie Haretuku with their New Zealand and building of new pilot boat. The challenges Association for Training and Development awards and constant development of new skills are what keeps Brent motivated. Ports of Auckland is constantly Diane Edwards, General Manager working on initiatives to increase Outside of work Brent is mad keen on A-Class People, Systems and Technology, engagement and wellbeing Catamarans and has been the president of the won the Learning Practitioner of within the workplace. New Zealand A-Class Association since 2015. the Year, recognising her work Later this year Brent will be leading 10 Kiwis in We have a large and diverse developing woman leaders at Ports the 2018 Hervey Bay World Championships, workforce, with three staff members of Auckland. She also took out the including America’s Cup winners Peter Burling, recently winning awards at the New Overall Learning and Development Blair Tuke and Mike Drummond. With these Zealand Association for Training and Person of the year award. boats reaching speeds of up to 25 knots, they Development (NZATD). Michelle Smith, Eddie Haretuku, a former long- are sure to entertain! Manager Systems Training, won the standing staff member, won the On Emerging Learning and Development the Job Trainer/Coach of the Year for Practitioner Award for establishing his stevedore training programme. our Learning Management System (LMS). Michelle only entered the Ports of Auckland is proud of its learning and development field in the people and will continue to invest last five years and her LMS entry took in them and has more programmes out some very stiff competition at the in the pipeline to ensure staff are awards. No other New Zealand port supported and informed, especially had staff featured. during times of disruption.
Supply Chain Ports of Auckland and the Supply Chain As Auckland’s population continues to grow Ports of Auckland is investing beyond the seaport in inland freight hubs that connect Auckland to the national supply chain network We are investing significantly To accommodate the current and costs to importers and exporters, as in a national supply chain future growth, The South Auckland the port works to balance flows and network to better support Freight Hub at Wiri has had several utilise the latent capacity in empty customers and extend the developments. Ambient storage containers. It can also help relieve port’s reach throughout space will be increased further with pressure on the capacity constraints New Zealand. We serve New plans to build two more facilities experienced at the seaport. Zealand’s national freight needs on site in 2019. With Wiri expected working collaboratively with The Waikato Freight Hub is currently to reach a capacity of 200,000 other regional ports and our being developed across 33 hectares inland hubs, to deliver goods TEU by 2023, the site will undergo and the first warehouse facility is efficiently and sustainably. further development to prepare it for set to be operational by Q1, 2019. increased cargo movements. The In 2014, we unveiled a plan to be Earthworks at the site are complete, site currently handles 13 trains per an active participant in the New connecting road and overbridge day, with this expected to increase to Zealand supply chain and we’ve construction is underway, as is the 21 trains per day by August. The site been working to this goal ever since. first warehouse. The Waikato Freight currently has an annual throughput This year major progress has been Hub will be able to handle 100,000 of 100,000 laden TEU. made to the North Island Freight TEU during the first phase of Hub network. Providing better international freight development and negotiations with hub links for the regions, lowers the first customers are advanced. 12
Interconnect Nexus and Conlinxx Update Last July Ports of Auckland demand high collaboration to ensure emissions acquired the remaining 50% that containers and goods are throughout the of logistics company Nexus being moved efficiently around the total supply Logistics, and its subsidiary city and country. Nexus Logistics chain. Conlinxx, from Netlogix. Nexus has recently invested in a new data then sold Conlinxx to Ports “We plan to take driven software and Conlinxx in a of Auckland. Conlinxx has full advantage of new Transport Management System continued with its operations as the technological (TMS) in order to take full advantage a Metro transport provider and advances in the of potential opportunities that inland hub operator, allowing industry, we may Nexus to focus on Intermodal technology can offer its customers. not be able to freight solutions for its clients As technology increases in the deliver shipping throughout Auckland and New sector, benefits can be passed containers via Nexus Logistics Chief Executive Zealand. This has been an down to customers, lowering drones yet, Officer, Mike Lightfoot exciting change for Nexus as emissions and the cost of freight but it opens we develop the 4PL model. movements. Sustainability is an up a number of opportunities for As Auckland continues to grow we important part of any business and our business model to grow over are seeing significant increases in Nexus Logistics works to align with the next few years,” said Nexus freight movements, to keep up with its customers sustainable strategies Logistics Chief Executive Officer consumer demands. High volumes to ensure both parties will minimise Mike Lightfoot.
The Year So Far SeePort Celebrating 5th Year and Record Attendance The SeePort event earlier this year event on the Sunday night, with the was the most successful SeePort Auckland Symphony Orchestra and event to date. This was the fifth the Lady Killers attracted more than year of the event. More than 72,000 14,000 spectators. SeaPort allows Aucklanders visited the port over the public to explore the port on Auckland Anniversary Weekend. land and on water, and provides the The Sunset Symphony & Fireworks chance to see operations up close. Left: Visitors at Ports of Auckland’s open day, SeePort, have a tour onboard tug boat Hauraki Ports of Auckland Round the Bays and Industry Golf Day Ports of Auckland Round the Bays $15,000 went to Lifeline and fun-run 2018 was another triumph $15,000 went to Riding for the this year, with over 30,000 registering Disabled South Auckland. to run the 8.4km route around the Earlier in the year a further $40,000 bays from Quay Street in the CBD, was raised for Ronald McDonald past the port and onto St Heliers House at the annual Ports of Bay. Each year Ports of Auckland Auckland Golf day, with a field of Round the Bays donates money to a 29 industry teams. selected charity – this year $20,000 went to the Spirit of Adventure Trust, Right Top: Ports of Auckland staff member and family at the completion of Ports of Auckland Round the Bays Right Bottom: Ports of Auckland CEO Tony Gibson presents the Ports of Auckland Golf Day cheque to Wayne Howett, CEO Ronald McDonald House Charities NZ. 14
Interconnect Ports of Auckland staff gather around Te Toka o Āpihai Te Kawau at the sunrise unveiling Āpihai’s Rock Unveiling Ports of Auckland and Ngāti Whātua of our ancestor Te Kawau Taawa, also Ōrākei unveiled a special kōhatu (stone known as Āpihai, for his gifting of land of remembrance) in May. It pays tribute to Governor Hobson for this town. There to Āpihai Te Kawau. Te Kawau sold was previously no memorial of him in the 3,000 acres (1,200 hectares) of land on city, so this is a huge deal for us”. the Waitematā Harbour for £50 and a quantity of goods, for the new capital of The memorial’s design is centred on Auckland, but later resisted further sales. Āpihai Te Kawau’s rock, set on a basalt stone bench, surrounded by a series of Te Toka o Āpihai Te Kawau is a place glass panels detailing the early history of where all people can come to learn Auckland. the history of Tāmaki Makaurau on the edge of the Waitematā Harbour. The “The port is honoured to have been memorial has been created along the able to work alongside Ngāti Whātua port’s historic red fence on Quay Street, Ōrākei, hand-in-hand, to create this near the former tip of Rerenga Ora Iti special monument to celebrate the (Britomart Point). It is intended to be an founding of our city and commemorate attraction for locals and tourists alike. the contributions of Āpihai Te Kawau Ngāti Whātua Ōrākei spokesperson to Tāmaki Makaurau” said Ports of Taiaha Hawke says, “This is in honour Auckland Chief Executive Tony Gibson.
Interconnect is the magazine of Ports of Auckland, Sunderland Street, PO Box 1281, Auckland, New Zealand. Phone +64 9 348 5000 www.poal.co.nz
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