Prospects look bright despite headwinds - REGIONAL REPORTAUSTRALASIA - Marr Contracting
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REGIONAL REPORTAUSTRALASIA
Prospects
look bright
despite
headwinds
Not all is glowing in the Australasian project markets, but
even with a backdrop of tension in the trade
relationships with China there is optimism that the
portents for heavy lift and out-of-gauge moves are
strong. Dave MacIntyre reports.
T
he importance of China has to be Australia s minister for resources and water,
recognised, given that it is the Keith Pitt, said coal will be a major
biggest trading partner for Australia contributor to the Australian economy well
and New Zealand, and therefore beyond 2030. Coal consumption
some grey clouds cannot be throughout Asia is forecast by the
ignored. Examples include BIMCO International Energy Agency (IEA) to grow
reporting that Chinese coal imports from over the next decade to meet the energy
Australia dropped 98.6 percent in the first demands of countries like China, India and
seven months of the year as restrictions on South Korea, he said.
imports bit. At the same time, China s
moves to curb steel production to limit air Cautious optimism
pollution are poised to affect iron ore There is cautious optimism about the
AAL discharging mining
miners. increasing project opportunities among cargo (a stacker
And yet Western Australia s spending on multipurpose shipping lines serving the reclaimer) at Australia’s
mineral exploration is the highest since region. Tony Spelman, Swire Shipping s Port Hedland.
2012, with the mining sector far outstripping business development manager for New
profit growth of all other industry sectors. Zealand, said that country has seen
National mineral exploration spending hit moderate activity over the past two years but storage facilities could potentially see some
AUD878.3 million (USD635.1 million) in most recently, with a planned 10-year increased activity. The cycle in dairy plant
the second quarter of 2021, according to the stimulus in transport infrastructure sector investment continues with several greenfield
Australian Bureau of Statistics an increase spending, activity is expected to increase. projects committed in the North Island
of 3.7 percent on the previous three months. New Zealand activity has remained alone.
Iron ore rebounded to steady; however enquiries for 2022 and Projects under way include the
AUD150.8 million (USD109 million), its beyond have certainly increased, supporting Auckland City Rail Link (NZD4.4 billion/
highest point on since Q2 2014. Although market sentiment and sector growth. USD3.1 billion) and the Watercare Central
coal slipped to its lowest in two years to Energy investment, wind, geothermal Interceptor (NZD1.2 billion/
AUD54.9 million (USD39.7 million), and potentially hydrogen and battery mass- USD830 million), which will see continued
116 November/December 2021 www.heavyliftpfi.com
REGIONAL REPORTAUSTRALASIA
parcel and project activity, said Spelman. remain significant factors affecting all forms been satisfying as we managed to carry a
Vertical construction has the potential to of shipping, and ports/last-mile sectors are healthy mix of project cargo as well as
support steel imports and while disruption often at, or reaching, capacity causing regular liner cargo like steel and machinery.
continues with Covid-19, this sector is upstream issues. There was no outstanding project shipment
booming. The evidence is the number of that AAL carried but it seems we participated
tower cranes operating across the country, Slow market in the majority of ongoing projects around
with 83 currently erected in the non- Frank Mueller, general manager Oceania for Australia in one way or another, be it
residential sector in Auckland alone. AAL Shipping, said that in Australia the infrastructure, mining or wind.
Looking ahead, Spelman said shipping heavy lift/project market is relatively slow at Chinese port congestion is still increasing
schedule disruption and port congestion the moment. Overall, the year for AAL has even now [at the start of October], affected
www.heavyliftpfi.com November/December 2021 117
REGIONAL REPORTAUSTRALASIA
New Zealand have had a devastating impact
Swire Shipping is
encouraged by the prospect
on the construction industry, with major
of forward bookings. Here a productivity losses and the rising cost of
bulk hopper is loaded at the materials blowing out budgets further.
New Zealand port of Despite that, Simon Marr, managing
Tauranga. director of crane specialist Marr Contracting,
is seeing plenty of opportunities both at
home and abroad particularly at a time
when the industry is looking for better ways
to construct, make worksites safer and
increase profit margins. He believes it is a
time when fortune favours the bold.
This all points towards a need for our
industry to be more innovative whether
through looking at different ways of doing
things or adopting new technology, which is
not something our sector has done
particularly well.
We see that as a massive opportunity for
those businesses who dare to think
differently particularly when it comes to
the way craneage is procured. We see the
best results when we are engaged early in a
project, but unfortunately there is still some
resistance to change among some customers.
by extreme Covid-19 restrictions and tonnage is already booked till the mid/end of Although they can see the benefits of
quarantine measures all causing significant 2022 and creating fierce competition for the engaging craneage experts at the tender stage
operational issues and fleet shortages by available space. if not beforehand they are still not
reducing vessel productivity. Delays of two to Most of our fleet space is booked until prepared to change. The reality is that
three weeks are currently the norm for December 2021 alongside a large volume of productivity and efficiency gains are there to
berthing in the main Chinese multipurpose traditional multipurpose cargo bookings for be made at the front end of a project, not the
ports and terminals. 2022. Indicators are that our fleet will be back end.
busy right through 2022, with freight levels Marr has been kept busy on several major
Markets turmoil either in line or even higher than the current projects in both Australia and New Zealand.
The sector is also being affected by the huge market. The Sydney Metro is Australia s biggest
problems in the container markets, Mueller On the ground, the pandemic-related public transport project, where Marr is
explained. A lot of multipurpose capacity is lockdowns suffered in both Australia and working with multiple clients on new
taken up by regular liner cargo left behind station builds. From its initial engagement
by container and ro-ro carriers. Cargo gets on the construction of the new Castle Hill
devanned and is booked on multipurpose Station and Sydney Yard, it has been tasked
tonnage to at least get moving. In turn, this with bespoke craneage solutions across
means that project forwarders are also trying another four stations including Barangaroo,
to find different solutions by breaking up Central, Martin Place and Crows Nest,
their cargo into smaller portions. employing the Marr philosophy of using
We are still seeing a significant backlog fewer cranes with greater capacity and reach.
of cargo, as well as those cargoes that were
previously booked but lost their vessel cover Specialised solution
due to heavy delays and congestion. These The Mirvac TX Tower project utilised a
cargoes are coming back into the market on specialised solution to dismantle the iconic
short notice and are serving to push rates up 233 m tower, while the East Rockingham
even higher, with charterers desperate to water-to-energy plant in Western Australia is
find tonnage due to their own cargo the second-largest such plant in Australia.
deadline commitments. Marr is also making a mark in New
Mueller said that looking ahead, the large Zealand, working with Fletcher
number of firm project bookings lined up Indicators are that our fleet Construction on Auckland s International
for 2022 makes the company believe that a will be busy right through Convention Centre. Marr s 200-tonne lift
large, specialised heavy lift fleet like AALs capacity M1680D is the largest luffing tower
will be extremely busy next year regardless 2022, with freight levels crane to be installed in New Zealand to date,
of what happens in the container market. either in line or even higher supporting Fletcher s team in removing and
We expect increasing demand on liner reinstalling the NZICC s roof steelwork.
space. We would expect a tightening of
than the current market. Looking ahead, Simon Marr said the
relationships, as lots of multipurpose – Frank Mueller, AAL Shipping company s pipeline for 2022 is the strongest
118 November/December 2021 www.heavyliftpfi.com
REGIONAL REPORTAUSTRALASIA
Overcoming
congestion
and staffing
issues
Need a workforce handy to the factory? How about
building a new town to accommodate it? It is a genuine
possibility in New Zealand where a massive new
NZD1 billion (USD690 million) manufacturing and
affordable-housing community is planned by the
company behind iconic Kiwi bed brand Sleepyhead.
The company has tired of congestion, supply chain An artist’s impression
problems and staffing issues in Auckland and wants of the proposed
employees to be able to buy their own homes. So, it Sleepyhead township.
has bought a swathe of rural land in Ohinewai, 85 km
south of Auckland, where it intends to develop a
mixed-use community with 1,100 new homes over the commute. The new estate will ultimately host a 66 ha moving their operations to southeast Queensland.
next ten years, while boosting its manufacturing space industrial hub, 33 ha of new housing and 60 ha of On Queensland’s Gold Coast, in particular, the
from 30,000 sq m to 100,000 sq m with a cutting-edge public open space. 3,300 ha Yatala Enterprise Area north of the city has
factory. Australia may be experiencing something similar in had a number of companies rapidly boosting their
The Sleepyhead Estate community would create a terms of a development frenzy, due to large presence, with a raft of new headquarters,
home for up to 3,000 residents and the new factory infrastructure projects across the country’s east coast manufacturing plants, warehouses and office spaces
about 2,600 new jobs. Residents would have no daily creating an explosion of companies expanding or rising in the industrial park.
it has ever been. We are seeing growth potential solar and wind resources, existing expected to make it easier to amend
across a diverse range of sectors infrastructure and proximity to large, long- exploration licences and foster more
particularly power generation, industrial term markets. streamlined discussions around proposed
construction (including data centres) and The Australian government is planning land uses.
large-scale government-funded to make the country a leading global The cornerstone of the bill is the
infrastructure projects. hydrogen exporter by 2030 after securing the establishment of the NT Aboriginal
approval of state and federal ministers for a Investment Corporation (NTAIC), which
Hydrogen investment AUD370 million (USD267.5 million) will benefit First Nation enterprises by
A number of major projects back up the Clean Energy Finance Corporation fund for investing royalty funds from mining on
optimism of players in the sector. North new hydrogen projects. Aboriginal lands. An initial investment of
Queensland could be shipping renewable Meanwhile, Australian Rail and Track AUD500 million (USD361.5 million) will
hydrogen to South Korea in the next decade Corporation has awarded major contracts be made through NTAIC, to be followed by
with the port of Townsville and Ark Energy for the AUD400 million (USD289.2 AUD60 million (USD43.4 million) a year
signing a memorandum of understanding million) Port Botany rail duplication project for the first three years.
(MoU) to investigate the development of a and the Cabramatta loop projects. The
renewable hydrogen plant along with contract to design and build the duplication Infrastructure improvements
associated export facilities at the gateway. was awarded to John Holland and the Over in New Zealand, the government has
Townsville believes it could become a global contract for the loop to Fulton Hogan. The earmarked NZD24.3 billion
hub for producing and exporting hydrogen. projects will encourage more freight (USD16.8 billion) to be invested in the
The same is true on the opposite side of movements to be made by rail. 2021-24 National Land Transport
the country, where a feasibility assessment The Northern Territory s mining Programme. The bulk of the funding will go
conducted by bp has confirmed its belief industry is set to grow, with, new reforms towards roads, with public transport
that Western Australia is ideally positioned introduced by the Australian government infrastructure and rail improvements also
to produce green hydrogen and ammonia. aimed at reducing red tape for current and benefiting.
Origin Energy and Mitsui O.S.K. Lines future mining enterprises. The bill is Energy projects are also in the spotlight
(MOL) are also investigating opportunities with Genesis Energy and Tilt Renewables
to develop the supply chain for export-scale signing a 20-year electricity off-take
green ammonia. The Australian government is agreement for a planned new 75 MW wind
Green hydrogen and green ammonia planning to make the country farm near Dargaville in the North Island.
synthesis utilising renewable energy is Subject to resource consent, it is expected to
theoretically possible at scale in Australia,
a leading global hydrogen be finished by early 2024.
according to the bp study, thanks to its vast exporter by 2030...
120 November/December 2021 www.heavyliftpfi.com
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