State committee reports New South Wales - By KUSHY ATHURELIYA, secretary - Shipping ...
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state committee reports
New South Wales
By KUSHY ATHURELIYA, secretary
behalf of the members of SAL. increase until 1 August, but did not
provide any relief on the rate increase.
Port Logistics Contribution Charge
SAL has also written to the Minister for
Despite several approaches made to Freight refuting the justifications for the
NSW Ports and the New South Wales recent 9.64 per cent rise in these charges,
State Government to withdraw the Port and seeking assurances that future price
Logistics Contribution Charge applied rises are kept below CPI.
to full containers, which NSW Ports had
absorbed since 01 June 2013, the charge NSW Ports – 30 Year Master Plan
was passed on to shipping companies NSW Ports is preparing a 30 Year
with effect from 01 March 2014. Master Plan for its port and intermodal
The Minister’s office advised that the assets. The Master Plan will: forecast
PLC is a charge payable by NSW Ports 30 year trade volumes; consider efficient
to reflect an ongoing contribution of and sustainable port and intermodal
the cost to the State of maintaining operational requirements; and identify
landside infrastructure that benefits land use and infrastructure requirements
the port operator. The Government is to support future demand. NSW Ports
making significant investment in landside is keen to work with stakeholders in the
infrastructure. For example, $252 million development of the Master Plan to ensure
is being invested in roads in the vicinity that the most up to date information is
of the port, via the WestConnex enabling used in developing the plan and that the
works that will improve traffic flow and Master Plan has adequately captured
access to Port Botany. all relevant requirements in the long
term interest of the ports and intermodal
Port Botany - Container weighing
terminals. In this way, NSW Ports intends
charge
Bill Rizzi continues to lead the Committee to deliver a robust Master Plan that will
as Chairman, taking time off from his SAL had been unsuccessful in its efforts guide future decision making. The plan is
very busy schedule to represent Shipping to get the State Government to review expected to be released mid-2015.
Australia at various forums to ensure that the imposition of the weighbridge fee
by the Stevedores in Port Botany on NSW freight and ports strategy
the interests of the shipping industry and
their principals are safeguarded. This not shipping lines, and seeking the charge The New South Wales Government
only includes aspects with respect to being applied direct to vehicles through released its strategy and has
costs, but also operational and regulatory the Vehicle Booking System. The State acknowledged that transport of freight
matters which could impinge on the Government does not wish to get is critical to the State economy, and
efficiency and workload of employees of involved in commercial matters, although the efficiency of the transport network
shipping companies. The Committee was in mid-2012 it had acquiesced to a review contributes to the success and growth
most grateful for the contributions made of the arrangements in 12 months.
of New South Wales, and that future
to the industry by the Vice Chairman, Alex Ports Authority of NSW (Sydney) - Tariff transport corridors, and land for logistics
Katona, during his involvement in the increase facilities, need to be protected.
Committee. He will be leaving his current
employer on 31 October 2014. Sydney Ports Corporation (now Port It was heartening to note that the
Authority NSW) had announced a strategy now encompasses coastal
We are extremely pleased with the 9.64 per cent price hike on pilotage, shipping, as recommended by SAL in
attendance of members at State navigation and site occupation. SPC its submission. Coastal shipping offers
Committee meetings and the robust had claimed that this extraordinary rise significantly lower per kilometre costs and
discussions that ensue during these was rate recovery, but pilotage fees have less environmental impacts, compared
assemblies that assist the secretariat in exceeded CPI by 4.5 per cent over the to road or rail freight. Although New
developing industry policies on all key past 14 years. SAL acknowledged that South Wales accounts for a significant
issues. During the year the opportunity navigation charges have not kept pace portion of national coastal freight flows,
was taken by members to visit and tour with CPI but were of the opinion that it over the past 10 years, the volume of
the facilities available in Port Kembla, and should not increase at that rate, as these freight moved by coastal shipping in
the Committee was indebted to Jason costs are fixed and not dependent on New South Wales has declined from
McGregor, Marketing & Trade Manager of the number of ship movements. Revenue 19.6 million tonnes in 2000/2001 to 16.2
NSW Ports, for arranging the visit. is ship and tonnage based, and has million tonnes 2010/2011. The Strategy
increased considerably over the past 14 asserts that the role of coastal shipping
During the year, Andrew Karas
years, so there is no justification for a CPI in New South Wales at this time appears
represented the Committee on the NSW
catch-up price rise.
Ports Cargo Facilitation Committee. to be limited, and growth will continue
Committee is extremely grateful to the Shipping Australia sought a review to be restricted by insufficient landside
Port coordinators in Newcastle and of the 9.64 per cent tariff increase capacity, vessel availability, and cost.
Port Kembla, Greg Bateman and Fiero and a deferment of the effective start Transport for NSW will work with industry
Mammone, for time and effort they date. SPC subsequently deferred to identify opportunities for facilitating the
dedicate attending to industry matters on the commencement date of the price role of coastal shipping.
22 Shipping Australia Limited Annual Review 2014
Use of Rail for the movement of maritime trade.
containers
Captain Kushlan Athureliya
Shipping is an inherently international
After 45 years in the maritime industry
Transport for NSW conducted a series of industry, which depends on a global
and 19 years, 8 months and 24 days
industry workshops, as part of the Fast regulatory system to operate efficiently.
with Shipping Australia Limited and its
Tracking Freight – Container Rail Mode Members of SAL are opposed to
predecessor, the Australia Chamber of
Share Program, to identify and prioritise unwelcome unilateral or regional regulation
Shipping, our NSW Secretary, Kushy,
options to increase the share of containers with respect to all aspects of shipping. SAL
retired on 27 December.
on rail through New South Wales ports, supports the ratification by the Australian
in order to achieve targets detailed in Government of key maritime treaties, His broad experience in many sectors
the NSW Freight & Ports Strategy and which are crucial to the implementation of of the industry, as a Master and harbour
NSW 2021. Plan is a target to double the an effective global regulatory regime for pilot with experience in container ships
proportion of container freight movement shipping. and tankers, as a marine surveyor, and
by rail through New South Wales ports by as a maritime administrator, was the
2020. This equates to 800,000 TEU being SAL supports the framework of global perfect background for his work with
carried to and from New South Wales ports conventions and regulations that have the Australian Chamber of Shipping and
by rail in 2020, based on the projected been developed by the United Nations’ Shipping Australia Limited.
throughput. International Maritime Organization (IMO).
Implemented and enforced, through a Kushy has long been considered the
The Committee had met and provided input combination of flag State inspection and font of all knowledge maritime, a walking
to the consultants appointed by Transport port State control, directly contributing “Google Maritime”. But combine this
for NSW to select options for improving to the improvement of shipping’s with his energy and enthusiasm, his no-
rail mode share from a shipping company environmental performance worldwide. nonsense approach to delivering results,
perspective. and his work output has been second to
Vessel owners are looking at every none. Kushy, has punched well above
The Container Rail Mode Share Program avenue to reduce their GHG emissions his weight and provided prodigious
(CRISP) has now been developed to by improving the efficiency of ships using support to our members and stakeholder
identify and prioritise options to increase modern shipbuilding practices, and groups.
the share of containers on rail through optimising vessel operations both at sea
New South Wales ports by improving the and in port. But productivity is only one aspect.
operational and economic competitiveness Kushy’s congeniality, his exuberant,
of rail services. The next stage of the There are a number of issues that still effervescent personality, and his unfailing
CRSIP analysis has been initiated and will remain unresolved. Such as the availability humility and respectfulness have
involve the development and assessment of of compliant fuel, capacity for Australian affected everyone in the industry. These
options that achieve mode share demand refineries to produce such fuel, massive characteristics have ensured that he has
outcomes and economic feasibility, which cost implications on shipping by the become known and loved by so many
would support business cases for future introduction of low sulphur fuel usage. The associated with the shipping industry,
funding. cost of supplying bunkers in Australia is particularly in his home state of New
already significantly higher than most ports South Wales.
Port Authority of New South Wales -
worldwide.
Amalgamation of port corporations Kushy, the staff, members, and
Members are concerned that if New South associates of Shipping Australia
The Port Authority of New South Wales
Wales imposes additional cost or regulatory Limited thank you for your exceptional
was established on 01 July 2014, with the
measures on shipping, which are specific contribution to shipping over nearly 24
amalgamation of Sydney Port Corporation,
to the State, it would result in significantly years with the company. We sincerely
Newcastle Port Corporation and Port
higher costs for vessels calling at New wish you a long and happy retirement.
Kembla Port Corporation, and has the
regulatory responsibility for ports of Yamba south Wales ports, compared to other ports
Fair winds and following seas.
and Eden. that compete for the same business, with
the consequence of New South Wales Further information on Kushy’s career was
SAL agrees with the State Government that potentially losing cargo to other States, and published in Profile winter 2006 available from
amalgamating the three port corporations become less competitive internationally. our website.
into one, will achieve a more efficient and
robust ports business for New South Wales, Long-term lease of NPC
Functions
with the benefits of commercial discipline The New South Wales Government has
that the state-owned-corporations model agreed to lease the Port of Newcastle Members and their guests enjoyed
provides. We hope that the management to a consortium of financial investors meeting in a relaxed atmosphere at the
takes advantage of the synergies and for 98 years in a $1.75 billion deal. The usual social events organised by the
rationalisation to deliver economies to port New South Wales Government reached Committee. The State Parliament House
users in the future, although initially we an agreement with Port of Newcastle Luncheon was hosted by the Hon Duncan
imagine that there will be some challenges Investments for the lease following a Gay, Minister for Roads and Freight. The
following the long-term lease of the ports competitive five-month bidding process. Hon Warren Truss, MP, Deputy Prime
with some staff employment guarantees. The consortium of Port of Newcastle Minister, Minister for Infrastructure and
Investments is comprised of two members Regional Development was the speaker
NSW Environment Protection Authority
– Hastings Funds Management and China at a luncheon in September 2014. The
(NSW EPA) - Managing non-road diesel
Merchants. biennial “Port Kembla Luncheon” was
emissions
held in July 2014, with Nicholas Whitlam,
The NSW Environment Protection The New South Wales Government will Chairman of the Ports Authority of New
Authority appears to be contemplating continue to retain regulatory oversight of South Wales, as the guest of honour and
implementation of regulations, inconsistent the Port of Newcastle, as well as retain speaker. The Christmas luncheon, as
with the international approach, ahead of responsibility for a range of maritime usual, is overbooked. The Committee is
international conventions entering into force safety and security functions, including extremely appreciative of the sponsors and
for managing diesel emissions in NSW from emergency response, Harbour Master, Port the support of members and guests, which
non-road users (which include shipping), Safety Operating Licence and pilotage assists in making these functions
which could adversely impact Australia’s functions. ‘fun for all’.
Shipping Australia Limited Annual Review 2014 23
state committee reports
Queensland
By Bill Guest, secretary
chairmanship of the Queensland State With so few industry networking events
Committee over the last two years, and held now, SAL considers it important
welcomed Geoff Dalgliesh (K Line Aust) to maintain both the Shipping Industry
to that role until 1 January 2016. Golf Day and the Industry Ball.
It is also more than appropriate to On the first Thursday in May a full field
acknowledge the help and cooperation played at the SAL Golf Day at Wynnum
received from Captain Richard Johnson Golf Club, with resultant funding going
who retired in late 2013 as Regional to the Brisbane Mission to Seafarers
Harbour Master (Brisbane), after 16 and the Stella Maris Apostleship of the
years in that role. Congratulations are Sea.
offered to Captain Glenn Hale, who has
Over 300 attended the SAL Shipping
taken that position.
Industry Ball at Moda Events Portside
Additionally noted, is the retirement Hamilton, which raised $15,000
of the supportive RMH Gladstone, towards the Brisbane Maritime Heritage
Captain Mike Lutze, who has been Trail venture. This project, which
replaced by Captain John Fallon. has the support of the Queensland
Government, is being coordinated by
More recently the resignation of PBPL
the Queensland Maritime Museum to
CEO Russell Smith has taken place and
preserve Brisbane’s maritime legacy by
SAL are indebted for the strong support
erecting plagues (with relevant photos
he has given, both as an SAL member,
and history) on sites where wharves/
and as a sponsor of industry projects.
depots/storage facilities once existed.
A 2013 reorganisation within the
The sponsors who are helping to ‘make
Queensland Department of Transport
this happen’ are to be acknowledged
Overview for 2014 and Main Roads (DTMR) saw
with special gratitude to the Port of
MSQ virtually ‘buried’ within the
Brisbane Pty Ltd (PBPL) and also to
This annual report inevitably opens with administrative structure. It was very
PB Towage, Chalmers Industries and
some comment on the impact of heavy pleasing that the DG DTMR has revised
Svitzer Aust. The ongoing backing of
weather early in the year and 2014 was that configuration to ensure that MSQ,
Brisbane Marine Pilots and the Ace
no exception, albeit that the port of in consideration of their important role
Waste Group adds to the great local
Brisbane was not a casualty. Cyclonic of managing Queensland waterways,
support given each year to worthy
conditions in north Queensland regained its position as a stand-alone
industry projects.
closed most ports for a short period division under GM Patrick Quirk.
of time with Hay Point, Gladstone It is pleasing to also record progress
and Karumba suffering the most. SAL undoubtedly benefits from MSQ
with Young Shipping Australia
Ship delays notwithstanding, there input to Queensland State Committee
Queensland (YSAQ) under the guidance
were no casualties nor infrastructure meetings (4 per year) and is also
of President Jenny Ruffell Smith who,
damage following the pre-emptive appreciative of the contributions from
for the 35 years old and younger,
and preventative approach taken by Australian Customs & Border Protection
would welcome new members from the
Maritime Safety Queensland (MSQ) Service (AC&BPS) and Department
industry. Jenny can be contacted on
in conjunction with other emergency/ of Agriculture (Dept Ag), who are
0402 514 597.
response services. As a seasonal regular invitees to these meetings.
inevitability of varying degrees, The objective remains to open each Port of Brisbane
MSQ has reviewed their defensive Queensland State Committee meeting
Generally, cargo flows through the port
with a guest speaker who presents on
procedures to ensure the least possible were flat during 2014 with drought
matters of relevance to the shipping
disruption to commercial shipping conditions seriously impeding the
industry. This year SAL members were
during extreme weather events. export of agricultural goods, especially
provided with a meeting venue at the
The two Queensland issues which grain and cotton. Coal was also well
MSQ Smart Ship Simulator together
stood out this year are the development down, more as the result of depressed
with a demonstration of this unique
(and consequences) of a long awaited international pricing, and there is
facility. Additionally networking lunches
coastal shipping policy, and the little enthusiasm that this position will
were organised immediately following
change in the foreseeable future.
devolvement by MSQ of port pilotage State Committee meetings and we
services to Queensland port authorities were fortunate to have well-informed Concerns over disposable income
(other than Brisbane and Abbott Point). speakers: have translated into negative
Both matters will be further expanded consumer sentiment for imports where
• Captain Richard Johnson –
later in this report. containerised white goods etc., have
‘Reflections on a Maritime Career’
been relatively stagnant for much of
Administration
• Michael Carter (EVP Aurizon) – 2014. Indications are however, that
SAL is thankful to David Hislop ‘Aurizon – Delivering Resources to the the back end of the year will see some
(Sturrock Grindrod) for his World’ resurgence.
24 Shipping Australia Limited Annual Review 2014
CEO of the PBPL (Russell Smith) has
emphasised that Australia’s freight
movements are predicted to double by
2030 with Brisbane’s task increasing
at a greater rate. With around 95 per
cent of port freight traffic moving by
road Russell Smith has stressed the
necessity for better rail and coastal
shipping services to alleviate the
massive road congestion that will
otherwise result.
The PBPL has been lobbying strongly
for a dedicated rail freight access
linking south-western Queensland
and the Port of Brisbane and, as
part of the Inland Rail project, the
Federal Government is financially
supporting this venture. Agreement
has been reached between the PBPL
and the Australian Rail Track Corp
(ARTC) to develop a plan, part of
which will facilitate the coverage of
prime agriculture and resource export Aerial view of Fisherman Islands
commodities west of Toowoomba, to
be railed direct into the port of Brisbane
where port expansion would be Queensland Port Pilotage
while bypassing the QR passenger
concentrated while ensuring the safe
network. It has long been the objective of
and environmental coexistence with
SAL is totally supportive of this the Great Barrier Reef. These ports Maritime Safety Queensland (MSQ)
objective and also sees the inclusion of are Brisbane, Gladstone, Hay Point/ to restrict their role to purely that
coastal shipping as an integral part of Mackay and Townsville. of a regulator, while setting the
easing landside freight congestion. sustainable and safety directions for
The QPS was the catalyst for an
Coastal Shipping Queensland port pilotage services.
excellent draft paper ‘The Sea
Freight Action Plan’ produced by the In November 2013 the devolvement
Over the years, many attempts have of these services to the relevant
been made to revitalise the coastal Queensland Department of Transport
and Main Roads – albeit that the focus port authorities occurred, with the
shipping trade, with the most serious
endeavour being made by the Federal was mainly on intrastate cargoes. exception of Brisbane and Abbott
Labor Government, when last in power. Point, where arrangements are already
Along with others (PBPL, Agforce etc),
However the restrictions they placed on in place. Operationally the transition
SAL responded with a submission to
the participation of international ships, the Queensland Government much of these services to port authorities
the need to forecast five voyages in along the lines of the Federal Options has progressed smoothly enough BUT
advance, and the conditions on joining Paper submission. The nub is, of the development of a pricing model by
the international shipping register, course, where international shipping MSQ has not.
hindered, rather than helped, any can legitimately play a part.
resurgence. MSQ are still in the process of creating
Now into the mix is the Federal a pricing model, which has all the
Added to those deterrents was the
Government initiated ‘Shipping complications of cross subsidisation
imposition of the Fair Work Act, which
Emergency Response Capability (equity of access!) and the need to
meant that ships crews must be paid
Assessment Project’ (SERCAP), which build in options governing the possible
Aust wages (and conditions) for any
will study the potential for coastal
leg of a voyage where coastal cargo leasing of ports.
shipping to mitigate landside supply
was carried. The present Federal
chain disruptions brought about by It will be a matter of ‘watch this space’
Liberal Government has recognised
these shortcomings and pledged extreme weather conditions. SAL and meantime, noted that port pilotage
to initiate equitable reforms. Public HO has received Federal Government rates increased by 3.5 per cent from 1
hearings have been held in response funding to complete this project over a July 2014.
to the Federal Government Options 12-month period, and the 2015 Report
Paper – Approaches to Regulating will advise the outcome. Objectives for 2015
Coastal Shipping in Australia. The Meanwhile it can rightly be deduced While continuing to best represent SAL
SAL submission called for the repeal from the above that there is still within the broader shipping community
(or radical amendment) to the Coastal much work to be completed on the there will be an increased incentive to
Trading Act 2012 and the exclusion of total coastal shipping issue, which
conditions under the Fair Work Act. work closely with the DTMR and MSQ
has both Queensland and national in respect to coastal cargo carriage and
The Queensland LNP Government implications. That includes a focus
port pilotage issues. Consequently
added their weight to the debate by on Queensland ports for their ‘fit for
there must be a greater awareness
commissioning a study into Coastal purpose’ credentials, which takes
in containerisation capabilities and of Queensland port operations, other
Shipping. A Queensland Ports
Strategy (QPS) has been initiated infrastructure requirements to handle than Brisbane, which remains our
to drive economic growth through increased shipping – with international primary focus. As a case in point, we
the establishment of five Priority vessels! Updates will be provided via are already involved with the trialling of
Port Development Areas (PPDAs), the SAL magazine. berthing protocols in Townsville.
Shipping Australia Limited Annual Review 2014 25
state committee reports
South Australia
By GEOFF ROSE, chairman
day-to-day operations, and directly Berth updates (Flinders Ports, Ports)
between the parties involved.
Berths 1- 4 Outer Harbor
SAL-SA, members and industry
This area is used for handling cars,
received regular updates from the
RoRo operations and Cruise Ships.
various industry bodies.
OH 4 berth has been upgraded as a
Container Terminal Monitoring Panel
(CTMP) common user fuel berth able to handle
tankers up to a displacement of 56,000
Susan Johnson (PAE P/L) was metric tonnes, maximum. Tankers
appointed, with Ian Henderson can either, fully or part, discharge their
(Hamburg Sud Aust P/L) appointed product via an underground pipeline to
as an alternate, representing SAL, the new 85 million litre capacity tank
to provide general information from farm, which increases South Australia’s
meetings to members. capacity by 50 per cent; constructed
on Pelican Point Road and operated by
In July 2014 the Government
Terminals Limited.
announced reforms whereby they
wanted every government board The channel to OH 4 is 14.20 metres
and committee abolished, which with the berth box being dredged
included the CTMP, to reform the way to 13.50 metres. Tankers will
Government engages with industry receive priority berthing over a car
and people, and speed up decision carrier. Some vessels will only part
making. The various ministers would discharge at OH 4, so as to meet draft
be responsible for recommending restrictions, before proceeding to
which boards and committees should discharge at other inner river berths.
be exempt from being abolished.
South Australia state steering Motor vehicle imports over the Outer
committee The CTMP members met on the Harbor berths are expected to increase
future of the panel, in reply to the from 2015 onwards.
Due to most Port Adelaide Shipping/ Government’s request. Despite strong
Agency Offices having low staff lobbying to cease CTMP meetings, by Berths 6-7 Outer Harbor - Flinders
numbers with heavy workloads, some members, SAL lobbied hard to Adelaide Container Terminal (FACT)
Shipping Australia Ltd – South Australia keep it active. A response was sent to
now operates with low representation The Flinders Adelaide Container
Government to reflect this. We await Terminal experienced solid growth in
and servicing members on an, as and the ruling on this issue.
when, required basis. 2013/14 with container
Training and functions volumes reaching 388,000 TEU,
The SAL steering committee currently
consists of Geoff Rose, Sturrock There were no SAL courses or which was an 11 per cent increase
Grindrod Maritime (Aust) P/L. (chair); functions held in South Australia during in throughput compared to the
Ian Henderson, Hamburg Sud Australia 2014. previous financial year. Further to this,
Pty Ltd and Paul Paparella, Asiaworld the container terminal continued to
Port updates/information and service the IMX iron ore contract, which
Shipping Services Pty Ltd.
security (Flinders Ports, Ports) equated to a further 110,000 TEU.
SAL continues to participate in a close
Flinders Ports commenced charging a There was no change to the services
working-relationship with Australian
“Security Fee” effective 1 July, based calling.
Customs and Border Protection
on a vessel’s Gross Revenue Tonnage.
Service; Australian Maritime Safety
The charge is applicable to vessels Considerable capital investment was
Authority; Department of Agriculture;
calling at any Flinders Ports operated undertaken during 2013/14 with the
South Australia Department for
port/berths, except at the Flinders finalisation of the purchase of two
Planning, Transport and Infrastructure
Adelaide Container Terminal, where Liebherr Post Panamax cranes, five
and Flinders Ports, and other industry
security and the charge has always Terex straddle carriers, three Hyster
bodies.
been supplied to users, as part of the Empty movers and an additional two
Geoff Rose also holds the “Sea Freight” terminal fee structure. hectares of hardstand to keep pace
representative position, as well as vice- with increased volumes. The new
chairperson on the South Australian Flinders Ports manages all security cranes are due to arrive in January
Freight Council Executive Committee. issues. These are bought to the 2015, and commissioning should be
industry’s attention in a general update
completed by early April 2015.
Year under review as required. The subject is also raised
at the Flinders Ports quarterly “South Industry welcomes FACT’s continued
Consultation with various industry
Australian Port User Group” meetings, focus on improving attitudes, upgrading
bodies
to which all port users, and both liner of the site and the infrastructure
No formal meetings were held. Most and tramp agencies, are invited to investment, which will result in benefits
issues were dealt with during the attend. for our port and its users.
26 Shipping Australia Limited Annual Review 2014
General items Iron ore loading operations via Outer
Harbor – Container Terminal
2013/14 Cargo Volumes Ex, South Australia (01/07/13 – 30/06/14)
(Courtesy of Flinders Ports P/L) The exporting of Iron Ore by IMX
Resources conducted at Flinders
Tonnes Adelaide Container Terminal (FACT),
utilizing open top containers via a
Reporting Group Imports Exports Total Rotainer Spreader and a Portainer
Cars 66,501 29,171 95,672 crane, have ceased.
Cement/Clinker 27,084 729,957 757,041 Due to the decline in iron ore prices,
Termite Resources, owners of Cairn Hill
Cereal Preparations - 13,400 13,400 mine, which was
Chemicals/Acids 60,718 - 60,718 51 per cent owned by IMX Resources
Coal 87,677 - 87,677 in a joint venture with Taifeng Yuan
Chaung International Development
Concentrates 221,649 204,476 426,125 Company, was placed into
administration in June 2014. A number
Copper and Uranium - 268,466 268,466
of other junior mining companies have
Fertilisers 591,296 - 591,296 faced difficulties with the decline in iron
ore pricing.
General Cargo 169,278 1,010 170,288
The last remaining iron ore left on the
Grain - 6,096,043 6,096,043 wharf ready for shipment was exported
Gypsum - 1,508,624 1,508,624 under instructions of the appointed
Administrator, at the of end October
Iron and Steel 88,477 - 88,477 2014.
Iron Ore - 1,581,456 1,581,456 Berth 8 Outer Harbor
Limestone 1,567,941 1,568,499 3,136,440 This purpose built Panamax capable,
Livestock - 29,315 29,315 grain loading facility, commissioned
in January 2010 by Viterra Limited. It
Mineral Sands - 1,097,181 1,097,181 operates with a single loader spout
capable of 2,000MTPH. Flinders Ports
Paragoethite 121,497 - 121,497
manages the actual berth structure.
Petroleum and Gas 2,682,190 2,975 2,685,165
Osborne No 1 Inner Harbour
Salt - 129,573 129,573
This berth is used for chemical/product
Scrap Metal - 269,997 269,997 tankers, with Flinders Ports considering
a possible Upgrade, so it can be used
Soda Ash 154,728 - 154,728 as a lay-by berth. Mariners were
Stock Feed - 9,826 9,826 advise on 29 July 2014 that the working
depth for No 1 Berth at Osborne has
Sulphur 57,581 - 57,581 been reduced to a temporary working
Tallow - 27,900 27,900 depth is 8.3 metres, as referred to
Lowest Astronomical Tide (LAT).
Timber - 78,300 78,300
Berths 18, 19, 20 and 29 Inner Harbor
Peas, Beans, Legumes and 55,771 519,515 575,286
Port Adelaide currently only offers three
Oilseeds
berths for general/bulk vessels to work,
Containers 1,560,691 2,940,660 4,501,351 being Berths 18-20 and Berth 29, all
situated in the inner river.
Total 7,513,078 17,106,344 24,619,422
Berths 18-20 have become the main
CONTAINER THROUGHPUT 2013-2014 wharves available to handle general
cargo and bulk vessels. Despite there
IMPORT EXPORT being three berth numbers, due the
20ft 40ft 20ft 40ft size of today’s vessels, only two could
be accommodated along the three
CONTAINERISED (TEUS) 49,211 90,634 78,680 79,386 berths, at the same time. These berths
offer narrow wharf aprons between
MOTOR VEHICLE THROUGHPUT 2013-14 the wharf face and the sheds, making
it difficult to perform some of today’s
IMPORT EXPORT Total changed cargo operations, whilst
maintaining safety to personnel and
MOTOR VEHICLE (UNITS) 41,306 16,124 57,430 cargo. The restricted available working
area in some instances, adds time and
NOTE: cost to the vessel stay in port, and
cargo handling.
(A) Above figures show cargo shipped through the Flinders Ports operated ports of
Port Adelaide, Port Lincoln, Thevenard, Wallaroo, Port Pirie, Port Giles & Klein Point. Agents try to berth and work certain
vessels and cargoes as much as
(B) Above figures do not include imports and exports from the ports of Port Bonython,
possible at Berth 29, due to the larger
Whyalla & Ardrossan, as these are privately operated ports.
Shipping Australia Limited Annual Review 2014 27
apron. But due to the berth being • Bitumise some unsealed cargo long jetty, utilizing a conveyor loading
allocated as a priority to HMC’s, sulphur storage areas behind the sheds, to create system with an estimated volume 25+
and mineral sands vessels, on the basis easier cargo handling, and eliminate million MTPA initially.
of their arrival schedule, this results in summer dust bowls and winter mud pits.
Development was granted major
other vessels, from time to time, that
Regional ports development status by the South
would prefer the berth, being held out
Australian Government on 15 August
until a suitable window opens, or they No major infrastructure changes to report 2013, and the Environment Impact
accept another berth. This places extra for the regional ports of Thevenard, Port Statement went on public display on 18
pressure on the remaining Berths 18-20, Lincoln, Whyalla, Port Giles, Ardrossan or November 2013. However, at time of
for which working some vessels and Port Bonython. writing, there was no further news on this
cargoes is made more difficult.
Proposed upgrades project, and it is suspected the current
Currently, if possible, at Berths 18-20, low iron ore prices are responsible.
most vessels try to position themselves Port Pirie - Nyrstar has reached an
in-principle funding and support In July 2014, Tokyo-based Mitsubishi
to work in the gaps between the sheds.
agreement with the South Australian Corporation announced it would
Livestock vessels equipped with various
and Commonwealth Governments to establish a diesel import terminal at
animal loading ramps and fodder loader
redevelop the Port Pirie smelter. The Port Bonython. This amounts to a $110
points, have the greatest difficulty trying
redevelopment includes investing in new million investment in South Australia, and
to position various loading. Some
technology to upgrade the facility to an will be the corporation’s first entry into
livestock vessels are not able to lower
advanced poly-metallic processing and the Australian fuels market. Mitsubishi
loading ramps, as the ramps are longer
recovery facility, capable of processing a will share the existing jetty facility at Port
than the gap between the ship and Bonython, currently used by Santos.
shed(s). wide range of high value, high
The facility, which is expected to be
The Stevedoring Companies and other margin raw materials. The upgrade will operational by mid-2016, will boost fuel
users, have been requesting Flinders also result in an improved environmental security in South Australia, providing
Ports improve both the working wharf footprint and reduction in airborne metal fuel to the State’s resources and energy,
area, as well as the cargo storage areas, and dust emissions, long awaited by the transport and agriculture sectors.
at Berths 18-20, for a number of years residents of Pt Pirie. The redevelopment/
General
now. Considerable monies have been upgrade is expected to cost $514 million,
spent by Flinders Ports with equipment and is due to be completed by early People and industry are losing
and berth up-grades at both FACT Outer 2016. confidence in the South Australian
Harbor & Berth 29, but industry still economy.
Port Bonython
awaits improvements to Berths 18-20.
In the last year: Penrice Soda Products
Port Bonython is situated at Point Lowly
Industry would like: closed; IMX ceased exporting iron ore,
(Port Bonython) on the Eyre Peninsula 31
and General Motors is closing in 2017
• Removal of one of the wharf sheds, kilometres north of Whyalla, on the (also affecting support industries). Many
to create a deeper wharf apron, better western side of Spencer Gulf. types of manufacturing industries in
access, traffic management and Australia are struggling. Recently in
In mid-2012, the Spencer Gulf Port Link
improved safety. South Australia, Coroma Industries (GWA
Consortium proposed building a multi-
• Removal of the old unused railway user loading facility, capable of loading Group Manufacturer) bathroom and
lines on the wharf surfaces. capesize vessels via a three kilometre kitchen fittings, closed to move off-shore
to China. Job losses were experienced
at Arnott’s Biscuit’s due some biscuit
lines now being manufactured in India,
as well as Hills Industries and Aldinga
Turkeys. Pacific Brands closed their Port
Adelaide distribution centre, with it now
being amalgamated with their Brisbane
centre, resulting in some job loses, along
with Custom Coaches at Royal Park
winding down.
The future building of warfare destroyers
and submarines in South Australia is
subject to contracts being awarded by
the Federal Government. The Australian
Council of Trade has reporting more
job losses, due to strong competition
from China and India but neither they,
nor the other levels of Government, are
addressing matters to assist industry or
create policy to minimise the impact.
The recent low commodity prices (iron
ore has fallen 40 per cent in 12 months)
are affecting our mining industry, with
the feasibility of some current and future
mines being assessed, as a result.
The South Australia Government is
currently operating in debt, with plans
of being in surplus by 2017, and
Port Adelaide’s Berth 18-20 storage area in winter researching other means of collecting
28 Shipping Australia Limited Annual Review 2014
more revenue from industry and
households. Households are struggling
with the high cost of living, mainly due
to the costs of energy (electricity/gas),
water, private health and the recent
increase of the Emergency Services
Levy (ESL), which all increased above
the CPI.
Despite the above concerns, the South
Australian 2014/15 grain harvest was
estimated by PIRSA in September
2014, to be a total of 7.6 million tonnes,
approx. 1.1 million tonnes less than
the 2013/14 season but still good for
the shipping industry, ports and grain
facilities, many of which are located in
regional areas.
Motor vehicle imports are expected
to increase, with the closure of local
manufacturers - General Motors, Ford
and Toyota, in Australia. Port Adelaide’s Berth 18-20 narrow wharf apron
In August 2012, BHP Billiton
announced the delaying of the $30
billion mega project planned for covering the mine will be sufficient for Olympic Dam is estimated to have
Olympic Dam, which was a blow to trials of heap-leaching, a cheaper form copper, uranium, gold and silver worth
supply industries, service providers and of processing. $1 trillion, with a life of 200years.
the State’s economy. The construction of the trial site is I feel we, South Australia, are in
Since then the Federal Government planned for July 2016, with completion for some difficult times, let’s hope
has decided that the existing BHP and trails to start in October 2016. my report next year shows some
environmental conditions currently Hopefully, future expansion will occur. improvement.
state committee reports
Victoria
By PHIL KELLY OAM, secretary
Office bearers Protection Service. It meets at two-
monthly intervals.
At its meeting in December 2013, the
Victorian State Committee elected Kon The respective contributions of these
Makrakis (state manager, Mediterranean organisations have been enlightening,
Shipping) as its chairman for 2014. and have broadened member lines’
Peter Bartlett (immediate past SAL understanding and appreciation of the
Victorian chairman and state manager, needs and goals of other port-related
Asiaworld Shipping Services) was activity. This group offers a wide range
elected vice chairman, until 30 June of expertise, and is the source of SAL
2014. Upon Peter’s retirement, Stephen representation on a number of industry-
Crundwell (Swire Shipping) was elected related sub-committees and working
as vice chairman, on 17 June 2014. groups.
Victorian State Committee records its Membership of ‘outside’ industry and
deep appreciation of Peter Bartlett’s port-related groups
astute and pro-active leadership
throughout three consecutive years. • Ministerial Freight Advisory Council
(MFAC)
Meetings
The establishment of MFAC was
The Victorian State Committee (VSC) announced in June 2012, with the
comprises the senior officers of member closure of the Victorian Freight &
lines and agencies in Victoria and, by Logistics Council.
invitation, corporate associate members.
Among these are representatives from MFAC’s charter is to provide
the Department of Agriculture and opportunities for Government to work
Australian Maritime Safety Authority, closely with industry on initiatives for
and Australian Customs and Border improving the efficiency and productivity
Shipping Australia Limited Annual Review 2014 29
of Victoria’s freight and logistics sector. consists of paper, steel and machinery; i.e., $1.6 million more than the $151.4
all of a weather-sensitive nature. million PLF incurred.
MFAC comprises a number of industry
leaders. Amongst others, SAL CEO One member line has re-directed some This PLF over-recovery of 1 per cent
Rod Nairn sits at this round table, of its ships to Geelong; an initiative has been factored into PoMC’s pricing
which meets at intervals with the which will, no doubt, ease but not
for 2014-2015. It cannot be denied
Ministers. The MFAC’s direct link with necessarily eliminate, the potential for
the two Ministries has been a useful delays awaiting a suitable berth. that the PLF is unpopular; PoMC and
conduit for Government and industry to indeed the Minister for Ports are well
engage. SAL is represented by Alan Miles of aware of this. However, SAL fully
K-Line, and Steve Crundwell of Swire
understands the circumstances which
• Customs Logistics Chain Shipping.
Consultative Committee (CLCCCV) led to its introduction and the role
• Empty Container Park Working being played by PoMC with regard to
The Victorian Regional Office of the Group (ECP WG) its collection.
then, Australian Customs Service,
established this committee in 2004, It will be recalled that by 2010, the SAL has consistently expressed
in order to harness the goodwill situation at all ECPs had become
disappointment that the yield, which
and expertise of all industry-related untenable for all users, including the
Parks’ owner/operators. The long is undeniably a tax on trade, is not
organisations, which have some
delays incurred by truck operators led hypothecated toward a fund for the
reliance on Customs procedures.
to a somewhat boisterous meeting provision of infrastructure specifically
Expert in this and many other fields, of all interests. Arising from this, the related to the improvement of road and
Meredith Adams (MOL) and Mark ECPs formed an association and, rail access to, and egress from, the
Molloy (Five Star Shipping), represent in due course, Containerchain Pty port of Melbourne.
SAL. Ltd was commissioned to devise an
electronic system, which now provides Impending long-term lease or sale of
Victoria’s commercial ports
a transparent tool for all stakeholders the port of Melbourne
SAL and its member lines and agencies to ascertain the whereabouts and
take pride in the facilities provided availability for collection and/or delivery In the lead-up to forthcoming State
by all of Victoria’s commercial ports of empty containers. elections on 29 November 2014,
and their administrators’ proactive both the incumbent Government and
approach to future development. It At that time, PoMC undertook the role
Opposition announced plans to either
is, regrettably, geographically difficult of independent chair, and has provided
meeting facilities and other resources lease (long-term) or sell the port of
to have regular meetings with regional
ever since. SAL Victoria takes this Melbourne in anticipation of a yield in
port authorities but it is the intention
to re-establish regular discussion and/ opportunity to express members’ excess of $5 billion.
or a reporting arrangement, during the appreciation of the stewardship shown
Metropolitan Fire Brigade Marine
course of 2015. by PoMC in this, and so many other
avenues of port administration. Response Group
Port of Melbourne Corporation
The dramatic change in the situation In late 2013, MFB outlined its desire to
(PoMC)
is also a tribute to Containerchain, train and establish a Marine Response
SAL has taken part in PoMC’s and this vast improvement reflects Group. Following presentations to
engagement with port-related industry the degree of cooperation, which is State Committee, SAL members have
in a number of areas: nowadays displayed by all parties. assisted by allowing access to ships
• Port Capacity Project Liaison Amongst the unfinished business is the in a series of trials, enabling MFB
Working Group (PCPLWG) need for all lines and agencies to adopt officers to receive training in boarding
This group comprises a wide range EDI messaging, when communicating ships, both alongside the berth, and
of expert representation, both from with their respective empty container underway in Port Phillip.
port-related industry and community- parks. Whilst several member lines
based organisations. Its role is to have adopted this practice, there The harbour master, Port Phillip Sea
identify and table any areas of concern remain instances where the change Pilots, and MFB and SAL have jointly
in which port extension might have the to EDI is either incomplete or non- coordinated the programme, and 90
potential to impact on the community. existent, and it is hoped that lines will officers now have expertise in boarding
It remains the prerogative of PoMC and move towards a complete change to ships at sea.
other relevant State instrumentalities, EDI as soon as possible.
to evaluate and decide upon the issues Functions
• Whole of Port Health Safety and
raised. Environment Committee (WOPHSEC) In May and November this year,
SAL is represented on PCPLG by Alan This group is hosted by PoMC and luncheons were held in the idyllic Jim
Miles of K-Line Australia Pty Ltd. comprises a wide range of business Stynes Room at the Melbourne Cricket
• Webb Dock Relocation Working and support services within the port of Ground. On both occasions, the guest
Group Melbourne; most of the delegates have speakers spoke to large gatherings;
a connection with occupational health all present making it obvious by the
As a consequence of the closure on 30 and safety, or the environment.
June 2014 of Berths 3, 4 and 5 Webb attention paid, that both dynamic
Dock for re-construction, a substantial SAL is represented by Aaron Bridgborn presentations had attracted intense
number of vehicle-carrying ships are of Hamburg Sud, and the secretary. interest.
being directed to Appleton Dock.
• Port Licence Fee (PLF) The Annual SAL Industry Golf Day was
This is expected to put pressure on
the availability of berths and under- Since the introduction of the PLF in held in March at the Waterford Valley
cover landside facilities for break-bulk 2012-2013, PoMC has recovered in Golf Club and yet again, was a great
cargoes, a large proportion of which total $153 million in relation to the PLF, success.
30 Shipping Australia Limited Annual Review 2014state committee reports
Western Australia
By PATRICK LOBO, chairman
cargo volumes have been reported lower The centre “will play an important role in
than last year, grain harvest has been very providing the science, skills and strategies
strong. We expect to see 13 to 14 tonnes to help the sheep industry improve capacity
of export this year. Steel imports have also and supply chains to satisfy customer
shown growth in the latter half of the year. requirements for lamb, mutton and wool,”
Mr Baston said.
Expressions of interest have been
confirmed for the development of VIC Dock Around the State
in Fremantle, and are now in the next stage
• Bunbury has a new grain export facility,
of request for proposal. This will be an
built by Bunge.
interesting development for general cargo
and RoRo vessels, to ease congestion from • In Exmouth, the State Government
Berths 11 and 12 in Fremantle. provided $20 million funding for a 130
metre service wharf extension, to provide a
This year’s Maritime Day event held by
supply and service base, for the oil and gas
Fremantle Ports, was a huge success. It
sector.
was much bigger than the previous years,
with a lot a sponsors and increased number • In Port Hedland, iron ore production
of stalls. The perfect weather conditions is reported to be up from 2013, however
during the day, drew huge crowds. The is offset by the falling price of the ore.
highlight of the afternoon was the Inner Expressions of interest were called for a
Harbour Classic yacht race. second towage provider. Presently towage
is carried out by Teekay.
A promising future for Western
Australia’s sheep industry • In Dampier, QUBE is developing a
transfer facility that will include a 100 metre
Western Australia will become a national
transfer barge, and construction of a new
In June, the Western Australian committee leader in sheep industry development,
60 metre long barge berth and supporting
had their first meeting of 2014. Captain with the establishment of a multi-million
hard stand cargo laydown area, next to the
Patrick Lobo, port operations manager for dollar Sheep Business Centre. Minister
existing Dampier cargo wharf. This facility
Wallenius Wilhelmsen Logistics, took over for Agriculture and Food, Ken Baston,
will provide the ability for vessels (heavy lift,
the position of chair from Jamie Allardice, announced the $10 million investment into
RoRo, general cargo) to discharge at safe
who has taken a new role as State general Western Australia’s sheep industry during a
anchorage, direct to barge, and connect to
manager with SDV Australia. visit to Katanning on 9 October.
the shore facility.
Robert Boyce, State manager MSC, was The $10 million Sheep Industry Business
A mixed bag in all, and we hope the
appointed vice chairman of the committee. Innovation project is supported by State
resource boom picks back up again in
Government Royalties for Regions funds,
2014 was an eventful year in Western the near future to improve the economy
as part of the Seizing the Opportunity
Australia: globally, and in Western Australia.
in Agriculture initiative. The project will
• We saw the amalgamation and include the establishment of a sheep A second meeting of the Western Australian
consolidation of eight Western Australian business centre at the Department of committee was held at the Flying Angel
ports into five port authorities, (Kimberley, Agriculture and Food’s (DAFWA) research Club in Fremantle on 21 October.
Pilbara, Mid-west, Fremantle/Kwinana and facility in Katanning, providing a hub
for information, research, training and Looking forward to 2015, where our
Southern Ports). objective is to increase activity in Western
innovation in the sheep industry. It aims
• The State Government announced the to build industry growth and cultivate new Australia, with more regular and structured
sale of Kwinana Bulk Terminal and Port markets for sheepmeat and live exports in meetings, as well as a more active social
Hedland Utah Point terminal, as part of Asia and the Middle East. calendar.
their asset sales strategy.
• During October the Fugro Discovery
and Go Phoenix arrived in Fremantle for
crew, before heading out to join the Indian
Ocean search for MH370.
• Back in August, strong winds in the
inner harbour caused a couple of cargo
ships to break away from their berths, in
Fremantle.
Interesting times ahead, as Transport
Minister Dean Nalder announced that
Fremantle ports will go to the market for
leasing of container terminals on North
Quay, with the current lease expiring in
2017.
Though vehicles, container and general The WA State Committee meeting held on 21 October 2014 was attended by the SAL ceo
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