FUTUREMIALLEADERSWHITEPAPER – PREDICTIONS FOR THE AUSTRALIAN MARITIME INDUSTRY IN 2040 FUTU RE LEA DE RS
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Brendan Curtis Economy Brendan has worked with ports and shippers for 15 years to facilitate the application of digital technologies to their operations, and developing and implementing strategies to optimise the value they realise. With experience across Australia, NZ, Africa, Middle East and Asia, his focus is on improving port efficiency and enhancing navigational safety.
Holding a Bachelor of Engineering, a Bachelor of Commerce, and an MBA, he is a Chartered Engineer and CPA.
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Rachel Horne Technology Rachel is the Assurance of Autonomy Activity Lead and Director of Autonomy Accreditation – Maritime at Trusted Autonomous Systems (TAS). She brings significant legal, regulatory and policy experience to the team, drawn from her experience working for the Australian Maritime Safety Authority. Rachel is a PhD candidate and an Industry Fellow with the Queensland University of Technology.
Rachel is driven to deliver ambitious solutions to the big issues facing the autonomous vessel industry, and instigated both the development of the Australian Code of Practice for Autonomous and Remotely Operated Vessels and the COLREGs operational framework. Rachel embraces opportunities to establish effective networks, including with other young leaders. This in turn assists in the creation of more sophisticated linkages across the maritime industry to inform the way challenges are addressed.
Table of Contents12
Conclusion
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Ewen McCarroll Communication Ewen holds a bachelor’s degree in journalism from the University of Wollongong and draws on his communications background to provide timely and accurate technical advice to the Domestic Commercial Vessel (DCV) industry as part of his day to day work at the Australian Maritime Safety Authority (AMSA). Ewen joined AMSA in 2018 working in the Vessel Safety Unit. He enjoys the diverse nature of work the DCV sector entails and has a keen interest in the role the maritime industry plays in Australia’s economy. Ewen is also fascinated by the way governments and private industry can shape a narrative to a wide audience and believes this is an area where Australia’s maritime industry can make great strides.
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Laura Allen
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LauraEnvironmentAllenjoinedRightShip in 2012, and throughout her 9 years she has shown great commitment to learn and make a difference to the maritime industry. Beginning her career in finance, she transitioned into Strategy, and more recently into the Project Management team. In her new role, she has a platform to assist RightShip across safety, sustainability and social responsibility, while she engages proactively and collaboratively with leadership and core team members to lead projects globally. Laura currently works on many RightShip initiatives and assists RightShip with delivering new products, features and outcomes to assist in their mission. She has also shown commitment to the industry by climbing Mt Fansipan in 2017, raising in excess of US $12,000 with two colleagues for Sailors Society as part of their Asian Challenge.
ForewordIntroduction AcknowledgementsAbout the MIAL Future Leaders Program Essays080604 12-4910 35
The MIAL Future Leaders program launched in 2019 to bring together the best of the next generation to establish a network of young maritime professionals and develop their leadership potential. The benefits were:
2. For organisations, investing in young leaders and developing high achievers will help create the next generation of industry champions, an integral ingredient to the maritime industry’s ongoing strength and success.
• Provide a two-way exchange between future and current leaders in the maritime industry
4
• Build a network of future leaders
• Offer experiences that are unlikely to be available by in-house or commercial training
The Future Leaders program adapted to an exclusively online setting providing a series of intimate discussions with thought leaders from the maritime sector around the world.
Program participants have drawn on their experience and insight to contribute to the MIAL Future Leaders Whitepaper – Predictions for the Australian Maritime Industry in 2040, with the intent of inspiring and provoking discussion within Australia’s maritime industry and advocating for change where it is needed.
The key objectives of the program were:
ABOUT THE MIAL FUTURE LEADERS PROGRAM
• Provide a platform for industry to learn from young maritime professionals
• Provide a broader understanding of the maritime industry, its challenges and opportunities and place in the Australian psyche
The Whitepaper demonstrates the collective knowledge gained by participants during the program, and includes a range of predictions for the future of the maritime industry across the themes of Technology, Economy, Communications and Environment.
• Engage the next generation of leaders to retain talent in the maritime industry
1. For individuals who aspire to leadership within the maritime industry, be that commercial, government or defence, there is no better way to understand how the industry works and the players in it.
This program was designed to provide an unparalleled, contemporary mix of experiential training, residential workshops and networking opportunities designed to enhance participants’ industry knowledge and increase their capacity to take on national leadership roles. Unfortunately, COVID-19 intervened after only the first set of events for the Future Leaders – including a behind the scenes experience within Parliament House.
The inaugural Future Leaders participants, and their sponsoring employers, were: MIAL FUTURE LEADERS L-R BRENDAN CURTIS, KATHERINE LANGWORTHY, EMILIE DONOVAN (BACK), TAYISSA POPOWICZ, LAURA ALLEN (BACK), RACHEL HORNE, MIKE MERRUTIA (BACK), EWEN MCCARROLL. Name Organisation Emilie Donovan AMC Search Rachel Horne Australian Maritime Safety Authority Ewen McCarroll Australian Maritime Safety Authority Tayissa Popowicz Maritime Industry Australia Limited Mike Merrutia MMA Offshore Brendan Curtis OMC International Laura Allen Rightship Katherine Langworthy Woodside 5 FUTURE LEADERS WHITEPAPER
FOREWORD
I am delighted to present the inaugural MIAL Future Leaders Whitepaper – Predictions for the Australian Maritime Industry in 2040.
Teresa Lloyd MIAL CEO 6
The maritime industry is steeped in history and tradition. The rate of change in technology and societal expectations has never been greater and there is a huge challenge for ‘old’ industries like maritime to keep up and to be seen and heard in a way that recognises the tremendous value and benefit of the industry’s contribution to the nation.
Thanks also to the many leaders – from the broadest cross section of disciplines - that met with the MIAL Future Leaders and provided their valuable time to share insights and experience. Also, thank you to the leaders who gave their time reviewing the Future Leaders essays.
The MIAL Future Leaders are to be commended for the work they have put into their papers, the insightful and thoughtprovoking predictions they have made, and their commitment to a prosperous, resilient and thriving maritime future.
This forward-looking compendium of papers, prepared by emerging leaders from our industry, provides insights and ideas that can guide business and government decisions for decades to come.
The MIAL Future Leaders have identified key areas for action that capture technological, social and economic drivers for business and government to make change. Their message to the industry is that the future is now.
MIAL has been honoured to guide the Future Leaders at this stage of their professional development and leadership journey. We look forward to delivering some of the unique experiences originally envisaged as part of the program as soon as movement restrictions and safety allow.
The industry will continue to evolve, as it always has, and engaging our best and brightest to champion the maritime industry and lead our future will ensure success and prosperity, not just for the maritime industry, but for our maritime nation.
We commend the MIAL Future Leaders Whitepaper: Predictions for the Australian Maritime Industry 2040 to you.
Disclaimer: This paper contains information, material and sources obtained independently by the author of each essay forming part of this white paper. Maritime Industry Australia Ltd (MIAL) makes no warranty as to the accuracy or completeness of information contained herein. MIAL shall not be liable for any loss, damage or expense howsoever incurred by any organisation or individual relying on information or statements contained in this publication. Any views or opinions expressed in articles contained within this publication are those of the author of the article and are not necessarily held by MIAL. Maritime Industry Australia Ltd 473 St Kilda Road Melbourne VIC 3004 T: +61 3 9647 6000 mial.com.au If you have any questions or comments relating to the essays in this whitepaper, please feel free to contact MIAL on 03 9647 6000 admin@mial.com.auor 7
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The exploration of issues, analysis of ideas and predications we have made will hopefully assist governments and businesses support the industry into the coming decades and position it well to serve the Australian community.
It is reasonable to suggest that the jobs of the future maritime industry are highly skilled and increasingly specialised.
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INTRODUCTION
The common theme to the papers contained herein is that by 2040 the mindset around the Australian maritime industry will have shifted to recognise it as one of exceptionally high-value to the nation. The industry in 2040 is technologically enabled, has broad community and political support, is well understood and is focused on continual improvement.
We have not specifically explored skills and training however it is acknowledged that this is a major factor in every facet of the industry and indeed, there are consequences in terms of human resources from the predictions we have made.
There are numerous elements to the maritime industry that could have been explored as part of the future vision for the Australian maritime sector. In choosing the areas of technology, economy, communications and environment we have captured key drivers of business development and industry profile.
Thank you to all who provided their time and knowledge to our Future Leaders. appreciate the input of everyone who contributed to the program.
Angela Gillham – Deputy CEO, MIAL
Alison Saunders - Communications Manager, MIAL 10
ACKNOWLEDGEMENTS
Matt McDonald – Searoad Ferries, Chief Executive Officer
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MDESFSTUD, MSTRATSTUD Guy Platten – Secretary General, International Chamber of Shipping Kathy Metcalf – President and CEO, Chamber of Shipping America Craig Carmody – CEO, Port of Newcastle John Lines AM – Former ANL CEO Warwick Norman AM – Former RightShip CEO and founder Stuart Neil – Communications Director, International Chamber of Shipping Allen Dobie – CSL Australia Pty Ltd, Vice President Commercial, Australia and Asia David Ross – MMA Offshore Ltd, Managing Director
Lada Bukharina – Head of Business Development and Commercial, Teekay Shipping Australia
Senator Carol Brown Senator Glenn Sterle Jonathan Sharman – Senior Adviser, Office of Senator the Hon Simon Birmingham
Gary Prosser - Commissioner of the Australian Transport Safety Bureau
Darrin Barnett – Director, Premier National Damien Guihen – AMS Specialist, AMC Search
David Borcoski – ASP Ships Group, Group Managing Director & CEO
We
Greg Jackson – Carnival Australia, Vice President Fleet Operations
David Parmeter – former MIAL Chair
Sophie White – Special Counsel, Clyde & Co
Melanie Olsen – ReefWorks Project Director, Australian Institute of Marine Science
Professor Guillaume Vuillemey – Associate Professor of Finance HECS, Paris Peter van Duyn – Maritime Logistics Expert, Centre for Supply Chain and Logisitics, Deakin University Vice Admiral Tim Barrett, AO, CSC, (Rtd) Iain Spittal – Partner, PKF Australia Air Vice Marshall John Blackman AO (RTD)
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4. A new Commonwealth Government entity, ‘Australian Complex Autonomous Systems Safety Authority’ (ACASSA) will set the standards and conduct assurance activities for the “black box” behind autonomous and semi-autonomous systems, for each of the air, land and maritime domains. Twoway secondments between ACASSA and traditional regulators will ensure a seamless experience for stakeholders, consistent regulatory and policy development, and the upskilling of staff.
5. “RegTech” concepts will be implemented by the ACASSA to enable continuous background monitoring of AI-based autonomous systems, using risk thresholds to determine input required by the operator, and enabling non-intrusive compliance checks.
Rachel Horne Predictions for the Australian maritime industry in 2040:
AUTONOMOUS AND REMOTELY OPERATED VESSELS: 2021 TO 2040
2. A Maritime Water Space Management System (MWSPS) will have been implemented to manage allocation of surface and subsurface water space and interaction between smart vessels.
3. The deconfliction service offered through the MWSPS, together with advanced navigation, sensing, and inter-vessel communication technologies, will enable minimal-crewing, and multiple semi-or fully-autonomous vessels to be supervised remotely by single operators, due to the significant reduction in collision risk.
1. Minimally crewed vessels with a spectrum of autonomous capabilities will be a normalised part of the commercial vessel fleet operating for routine passenger transport, movement of goods, scientific research, and tourism.
The police, border protection and Defence agencies will have significant numbers of semi-autonomous and autonomous vessels in their fleets.
6. Australian Ports are able to accommodate large international trading vessels with advanced autonomy on board, and the integration of Vessel Traffic Services with the Maritime Water Space Management System have reduced the workload of VTS operators and vessel crew, reduced incidents, and improved efficiency.
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Mikael Mäkinen, President Rolls-Royce Marine[1]
“Autonomous shipping is the future of the maritime industry. As disruptive as the smart phone, the smart ship will revolutionise the landscape of ship design and operations”.
[2]
“Remote and autonomous ships have the potential to redefine the maritime industry and the role of players in it with implications for shipping companies, shipbuilders, maritime systems providers and technology companies from other (especially the automotive) sectors.”
[1] Advanced Autonomous Waterborne Applications (AAWA initiative), Remote and Autonomous Ships: The Next Steps (accessed https://www.rollsroyce.com/~/media/Files/R/Rolls-Royce/documents/customers/marine/ship-intel/aawa-whitepaper-210616.pdf, 26 May 2021)
[2] Advanced Autonomous Waterborne Applications (AAWA initiative), Remote and Autonomous Ships: The Next Steps (accessed https://www.rollsroyce.com/~/media/Files/R/Rolls-Royce/documents/customers/marine/ship-intel/aawa-whitepaper-210616.pdf, 26 May 2021)
To be strong and sustainable in 2040, the maritime industry and Australian Government must work together to develop the knowledge, culture, and regulatory frameworks required to facilitate the uptake of this technology.
This will see uses flourish in a range of industries including hydrographic surveying, marine surveying, scientific research, oil and gas, transport and Defence. Failure to start enacting change now, in 2021, risks the opportunities on offer being monopolised by foreign companies into the future.
Problem Statement We know that autonomous systems technology will revolutionise the maritime industry, reducing risk[3], operational cost and environment impact, while increasing efficiency and reliability[4]. We know that there are strong use cases for this technology, currently in scientific research, hydrographic surveying, oil and gas, and Defence, and that in the future this will expand to tourism and transport of people and goods.
The Australian maritime industry and the Australian Government know that autonomous technology is here, and that as its capacity and availability increases, so too will the number of organisations seeking to develop, sell and use them. What I know is that we need to work together to advocate for, and realise, the type of change necessary to realise the benefits we are all aware of, to ensure both current and 14
We also know that that the current Australian regulatory framework is prescriptive, outdated, and not appropriate for autonomous technology – it assumes a human will be on board and in control, and when this is not the case, bespoke exemption processes are required. We know this is a resource burden on industry and on the regulator, the Australian Maritime Safety Authority (AMSA), and that only small steps have been taken to date to address this. We also know that the regulatory issues are not just an AMSA problem. AMSA cannot amend its legislation, only the Department of Infrastructure, Transport, Regional Development and Communications[5] can lead that. Without legislative amendment, AMSA is forced to continue relying on exemptions, rather than being empowered to enact more appropriate regulatory approaches. Until AMSA’s legislation is changed, no significant regulatory progress will be made.
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The Australian maritime industry already faces many hurdles – we must act to ensure autonomous systems technology is a leg up, not a missed opportunity.
[3] “According to Allianz Global Corporate & Specialty, between 75% and 96% of all accidents in the shipping sector can be attributed to human error.” Walker. Jon, Autonomous Ships Timeline – Comparing Rolls-Royce, Kongsberg, Yara and More, Emerj, 22 November 2019 (accessed https://emerj.com/ai-adoption-timelines/autonomous-ships-timeline/, 26 May 2021) [4] Horne. R, Putland. T, Brady. M, ‘Regulating Trusted Autonomous Systems in Australia’ (Conference paper [in progress]), pg. 3 [5] AMSA’s portfolio agency
Introduction Autonomous systems technology has the potential to revolutionise the Australian maritime industry, reducing risk, operational cost and environment impact, while increasing efficiency and reliability.
We know that countries such as Finland, Norway and the United Kingdom are making rapid advancements in both the technology and the regulatory approach, but that Australian capability is not developing at the same rate.
future generations of Australians will benefit from this technology for years to come. Whether the opportunity presented by this technology is captured by Australians, or monopolised by foreign entities, will depend on how ready the industry is to accept the change this technology brings, and how effectively the Australian Government can modernise its regulatory approach to facilitate development and uptake. In the age of COVID-19 and increasingly volatile global relations, Australia must build its sovereign capability, and be a technology leader, not a technology sceptic.
Thedomestically.actualterm ‘autonomous vessel’ covers a wide variety of possible technologies, with remote operation the common factor, and a spectrum of autonomous behaviours and support functions available.[6] For example:[7]
[7] Unmanned Ship Org, Munin, The Autonomous Ship (http://www.unmanned-ship.org/munin/about/the-autonomus-ship/, accessed 26 May 21)
[6] World Maritime University, Transport 2040: Autonomous ships: A new paradigm for Norwegian shipping – Technology and transformation, 2019 (accessed https://commons.wmu.se/cgi/viewcontent.cgi?article=1072&context=lib_reports)
The specific technologies that enable autonomous and remotely operated vessels include a combination of sensors, decision support and control systems based on algorithms, communication systems, and internet connectivity.
The Autonomous Ship, as it is understood in the MUNIN project, is a symbiosis of the Remote Ship and the Automatic Ship – © MUNIN
The future of the Australian maritime industry and its workforce depends on it.
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AutonomousBackground Vessels
What are autonomous vessels? Vessels capable of autonomous and remote operation, colloquially known as autonomous vessels (even though none are currently capable of ‘true’ autonomy), have been in commercial operation in Australia since approximately 2017. Hydrographic surveying and scientific research are the most common uses to date, with specialised vessels ranging from between less than 1 metre to 12 metres in length. Small autonomous underwater vessels (AUVs) have been used by the Australian scientific research community for a longer period of time than indicated above. There is a variety of terminology available to describe autonomous vessels, and domains or industries often have their own internal preferences. For example, Autonomous Surface Vessel (ASV) or Autonomous Underwater Vessel (AUV) is common within scientific research, whereas Unmanned Surface Vessel (USV) or Unmanned Underwater Vessel (UUV) are more common in the Navy. The term Remotely Operated Vessel (ROV) refers specifically to tethered vessels, which are generally small, subsurface, and are commonly used in the oil and gas industry. The term ‘Maritime Autonomous Surface Ship’ (MASS) is used by the International Maritime Organization (IMO), and refers to large seagoing vessels, for example cargo ships, in contrast to the much smaller vessels operating
Image of Explorer AUV, used with permission from Damien Guihen
Image of Ocius Bluebottle, used with permission from Ocius
Image of Fugro Seakit, used with permission from Fugro Image of Iver AUV, used with permission from L3Harris
Some examples of autonomous vessels operating in Australia include:
Image of Coral AUV, used with permission from AIMS
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Why are autonomous vessels so beneficial for the maritime industry? Autonomous vessels present significant opportunity to reduce maritime incidents, injuries and fatalities. The European Maritime Safety Agency accident statistics between 2011 and 2016 identified human error as being “… the triggering factor in 62 per cent of incidents with EU registered ships from 2011 to 2016… Statistics on fatal accidents have ascertained that work on deck, for example mooring operations, is 5 to 16 times more dangerous than jobs ashore…”[8] Removing workers from dull, dirty and dangerous tasks can be achieved using autonomous technology. In addition to the safety benefits, “two of the primary drivers for use of autonomous systems in the maritime domain are the efficiency and cost-saving benefits that can be realised. For example, in the hydrographic survey industry, opportunities were identified early on to save a significant portion of fuel budgets by using small autonomous vessels to conduct the majority of surveying work. This economic incentive, which extends from fuel savings into the opportunity for concurrent operations without additional crew costs, and longer operation times, has driven the development of increasingly sophisticated autonomous vessels. In addition to economic incentives, autonomous systems have the capacity to…reduce the environmental impact of commercial activities.”[9] What will we see in autonomous vessels by 2040?
[9] Horne. R, Putland. T, Brady. M, ‘Regulating Trusted Autonomous Systems in Australia’ (Conference paper [in progress]).
“Applied artificial intelligence, low cost low size sensors, increased connectivity, improved cyber security and better energy management are all likely to drive rapid and disruptive change in the maritime industry.”[12]
[8] Technical University of Denmark, A Pre-analysis on Autonomous Ships, 2017 (accessed https://www.dma.dk/Documents/ Publikationer/Autonome%20skibe_DTU_rapport_UK.pdf, 26 May 2021)
[13] 17 FUTURE LEADERS WHITEPAPER
[10] The Maritime Executive, ‘Autonomous ships before autonomous cars?’, 12 September 2017 (https://www.maritime-executive.com/ article/autonomous-ships-before-autonomous-cars, accessed 26 May 2021) [11] Ibid., [12] Ibid., [13] Rolls-Royce, Ship Intelligence: Marine, Autonomous Ships – The next step, 2016 (https://www.rolls-royce.com/~/media/Files/R/RollsRoyce/documents/%20customers/marine/ship-intel/rr-ship-intel-aawa-8pg.pdf, accessed 26 May 2021)
“A ship’s ability to monitor its own health, establish and communicate what is around it and make decisions based on that information is vital to the development of autonomous operations.”
“Networks of autonomous surface and underwater vessels are set to radically change the nature of maritime operations, says Tim Kent, Technical Director, Marine and Offshore, Lloyd’s “UnmannedRegister.”[10]ships will be more efficient, reduce emissions and operate at lower cost, but this will require effective integration of sensors with improved decision-making algorithms. Autonomous vessels feature similar technology to self-driving cars and use a range of physical sensors to power autonomous functions, including: Global Positioning System (GPS), Inertial Navigation System (INS), optical and infra-red cameras, radar, lidar (light detection and ranging), highresolution sonar, microphones, and wind and pressure sensors.”[11]
[17] Royal Australian Navy, Warfare Innovation Navy, RAS-AI Strategy 2040 (https://www.navy.gov.au/sites/default/files/documents/RAN_WIN_ RASAI_Strategy_2040f2_hi.pdf, accessed 26 May 2021)
What about Defence?
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Image from Ship Intelligence: Marine, Autonomous Ships – The next step, Rolls-Royce 2016[14]
[14] Ibid., [15] Ibid., [16] Australian Maritime Safety Authority, 2020/21 Corporate Plan (accessed https://www.amsa.gov.au/sites/default/files/corporate-plan-2020-21. pdf, 26 May 2021)
The Strategy outlines common trends across technologies that enable effective RAS-AI systems, the common enablers, important advances that will need to be made, and the potential technologies that could be in place by 2040. While some vessel-specific
Defence is investing heavily in trusted autonomous systems across the Airforce, Army and Navy, with a focus on building Australian sovereign capability. In a maritime context, the Navy has been working alongside industry for a number of years to support the development of important autonomous capability, in both surface and sub-surface environments. In the recently released Navy RAS-AI Strategy 2040, the Chief of Navy, Vice Admiral Michael Noonan, AO, RAN, said: “To fulfil our potential, we need to engage in constant experimentation, and encourage collaboration and innovation at all levels. This will enable us to leverage RAS-AI [Robotics, Autonomous Systems and Artificial Intelligence] to enhance Navy’s capability by strengthening our Force Protection, increasing our Force Projection in the maritime approaches of our near region, improving our Joint Integration through Partnership, maximising our Force Potential, and ensuring Australian Control.”[17]
The technological advancements that will contribute to this vision are: sensor fusion; control algorithms; and communication and connectivity, enabled by reliable internet/satellite connection and cyber security.[15] Increasingly advanced adaptive mission planning capabilities will also play an important role. These advancements will continue to improve the safety and efficiency of maritime operations, opening new opportunities to monetise and improve the movement of people and goods, and to provide services for the community.
AMSA’s Corporate Plan 2020/21 offered a reminder that, “While technology can improve safety, efficiency and environmental protection, it comes with new safety, security and environmental risks that must be properly understood and managed.”[16]
Increasing use of autonomous and remotely operated vessels in Australia will impact the maritime workforce. While some current roles may not exist in the same way by 2040, there will remain a strong demand for seafarers with the experience to operate and supervise these vessels, and for engineers and other technical roles to build and maintain them.
The 2021 workforce is not sufficient to meet the demands of the maritime industry; the Maritime IRC’s 2019 Skills Forecast identified that over 78% of employers reported experiencing a skills shortage during the last 19
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“Automation and other technological changes are emerging and are expected to significantly impact on the workforce. While automation may reduce the need for some occupations, it will also require the development of new specialist skills to operate, manage and maintain the machines.”[19]
TAS is also working to facilitate and accelerate understanding and resources related to the ethics and law of trusted autonomous systems, and the assurance of autonomy. TAS projects funded by the Queensland Government are delivering tools and resources to support Australian industry, and improve the assurance and accreditation framework in Australia.
Impact on workforce
“Key trends in the maritime and ports workforce include: 1. Ageing workforce 2. Technological change 3. Skills shortages and competition 4. Lack of available training berths 5. A decline in resources freight but growth in cruises and containers.”[21]
[18] Royal Australian Navy, Warfare Innovation Navy, RAS-AI Strategy 2040 (https://www.navy.gov.au/sites/default/files/documents/RAN_WIN_ RASAI_Strategy_2040f2_hi.pdf, accessed 26 May 2021)
[19] State of Queensland (Department of Transport and Main Roads), Queensland Transport and Logistics Workforce: Current and Future Trends Report, November 2018 (accessed 27 May 2021) [20] State of Queensland (Department of Transport and Main Roads), Queensland Transport and Logistics Workforce: Current and Future Trends Report, November 2018 (accessed 27 May 2021) [21] elementsIbid., such as propulsion, power, reduced maintenance requirements, and launch and recovery systems are mentioned, the focus is on the ‘smarts’, i.e. systems of control, teaming and swarming, means and modes of communicating, and AI, all of which require big data access, secure computing, and trusted and dynamic spectrum management. The 2040 technology discussion focussed on cognitive capabilities such as scene understanding, abstraction, ideas-based reasoning, coordinated swarms, and understanding of intent. There was also mention of on-board data processing, autonomous cyber-defence, and self-healing mesh networking paths.
The multidisciplinary approach championed by TAS, which sees industry, academia and Defence work together, is particularly effective in autonomous systems developments.
“As vessels become remotely operated, it is expected that the workforce will increasingly be working in onshore operation centres rather than at sea.”[20]
[18] Defence is facilitating the development of autonomous technologies through a range of initiatives, including Defence Innovation Hub grants, the Defence AI Centre, and through investment into the Trusted Autonomous Systems Defence Cooperative Research Centre (TAS). TAS was established under the Next Generation Technologies Fund to facilitate game changing Defence technology projects.
Vessels are categorised as either domestic commercial vessels under the Marine Safety (Domestic Commercial Vessel) National Law Act 2012 (National Law Act) or regulated Australian vessels under the Navigation Act 2012 (Navigation Act). Vessels need to have the requisite certification, which requires complying with specific survey standards and operational requirements.
“The laws, Marine Orders, and standards that apply to all commercial vessels were written for traditional manned vessels, but remotely operated and autonomous vessels must also comply with them. As the unmanned vessels generally cannot comply with the design, construction, equipping and survey requirements applied to traditional vessels, and there are no tailored standards available to use, operators must seek exemptions in order to operate. This reliance on exemptions may not be feasible beyond the short term, due to the administrative burden and delays it creates for operators and AMSA.”[26]
AMSA’s legislation is somewhat rigid, which is what causes the reliance on exemptions. Until the legislation is changed, AMSA is limited to regulatory action such as issuing guidance, setting policy, upskilling AMSA officers, and providing information to industry. AMSA also established a relationship in 2019 with the Trusted Autonomous Systems Defence
How are autonomous vessels regulated?
Autonomous and remotely operated vessels are regulated by the Australian Maritime Safety Authority (AMSA), which is the Commonwealth statutory authority responsible for maritime safety, protection of the marine environment from pollution, and search and rescue.[25]
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Regulation of Autonomous Vessels
[22] Australian Industry Standards, Maritime Skills Forecast 2019 (accessed https://www.australianindustrystandards.org.au/wp-content/ uploads/2020/08/MAR-SF-FULL-2019.pdf, 27 May 2021) [23] Ibid., [24] Ibid., [25] G Judson and R Horne, ‘The regulatory approach for vessels capable of autonomous and remote-controlled operation’ (Conference paper, International Maritime Conference, Pacific 2019). [26] G Judson and R Horne, ‘The regulatory approach for vessels capable of autonomous and remote-controlled operation’ (Conference paper, International Maritime Conference, Pacific 2019). 12 months, including for small vessel (<35m) masters, engineers, marine engine drivers, deckhands, and navigation.[22]
The report identified a number of causes for the shortage, including ageing workforce, salaries considered too low, competition, and the geographic location of the role.[23] These issues must be addressed, and the workforce upskilled and strengthened, in preparation for the requirements this new technology will impose, and to ensure the demand is filled using Australian expertise.
The Maritime IRC’s 2020 Skills Forecast (abridged annual update) identified that the workforce needs to be upskilled as a priority, noting the changes to operations caused by e-navigation, autonomous berthing and unberthing, remote monitoring and autocollision technologies, and the new skills that autonomous vessels and dynamic positioning will require.[24] This training will need to occur through new training programs, which AMC Search in Tasmania is currently leading the charge on. However, while there is no dedicated qualification framework for autonomous and remotely operated vessels, it will remain an uncertain and largely untapped area of potential.
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Solutions The technological developments that must happen to enable transition from the 2021 situation to the 2040 vision are well known, and numerous Australian organisations are investing in leading that work. Defence support for developing Australian sovereign capability will also accelerate progress. The harder challenge is to identify and enact the regulatory change which is required to reach that 2040 vision.
“There are many challenges associated with effectively regulating autonomous systems, including how to ensure trust in these systems, how to ensure the regulatory approach is the most appropriate option, how to adapt current systems safety approaches, and how to adapt current assurance and accreditation frameworks. The complex, interconnected nature of autonomous systems, including cybernetic systems, means that assurance as a concept must shift to account for the high levels of interdependency between core systems.[27] For example, in an autonomous system some of the components that will require assurance include algorithms, software, hardware components, and the integrated robotic systems.[28] The algorithms that underpin autonomous systems do not fit a traditional regulatory model because they are not static – they “… can be designed to constantly update based on new data (through machine learning).
It may be difficult to predict how a machine learning algorithm will respond to a new environment, or to data in a form it did not encounter during development or testing. These issues pose a challenge to both manufacturers and regulators.”[29]
[28] Devitt, K., Horne, R., Assaad, Z., Broad, E., Kurniawati, H., Cardier, B., Scott, A., Lazar, S., Gould, M., Adamson, C., Karl, C., Schrever, F., Keay, S., Tranter, K., Shellshear, E., Hunter, D., Brady, M., & Putland, T. (2021). Trust & Safety. Robotics Roadmap for Australia V.2 [forthcoming]. Robotics Australia Network. [29] National Productivity Commission, National Transport Regulatory Reform: Productivity Commission Inquiry Report, No. 94, 7 April 2020 (accessed https://www.pc.gov.au/inquiries/completed/transport/report/transport.pdf, 26 May 2021) [30] CooperativeIbid., Research Centre (TASD CRC) to explore issues around assurance and trust in autonomous systems. What is conceptually hard about regulating these vessels?
If a regulatory agency approves the use of a particular autonomous technology, the underlying code may evolve over time and become entirely different to the initially approved code (OECD 2019). Code is also often created in environments that are not open to scrutiny and, over time, algorithms may become increasingly complex, preventing regulatory agencies (and the wider population) from assessing their function (OECD 2019).
[27] Horne. R, Putland. T, Brady. M, ‘Regulating Trusted Autonomous Systems in Australia’ (Conference paper [in progress]).
“While the regulation of automated technology is in its early days, tensions are already emerging between traditional public governance structures and the code-based decision making processes of automated technology (OECD 2019). Governments need to ensure regulatory frameworks are designed to ensure safety without imposing unnecessary regulatory burden or stifling productivity- and safety-enhancing innovation.”[30]
The current approach, whereby traditional regulators are responsible for regulating increasingly complex autonomous technology, is not feasible longer term. A failure to change approach will compromise the Australian maritime industry’s ability to develop and use this technology, and will force already resource-strapped regulators to make safety-related decisions without a sufficient understanding of the technology, its risks and mitigations, and without being able to provide guidance, confidence and certainty to industry and other waterways users.
A new regulator for autonomous systems
ACASSA must implement “RegTech” concepts to enable continuous background monitoring of AI-based autonomous systems, using risk thresholds to determine input required by the operator, and enabling non-intrusive compliance checks. [31] ACASSA will set the minimum standard that autonomous systems must reach and maintain to meet Australia’s expectations for safe operations in the marine ACASSAenvironment.must also review and, where appropriate, implement the recommendations of leading bodies in the regulatory and assurance space. For example, in 2019 a report by the Organisation for Economic Co-operation and Development recommended that “as a first step, regulators should identify the risks posed by the use of algorithms in transport technologies, and should employ staff who possess the relevant skills to enable the assessment of algorithms and autonomous
A new Commonwealth Government entity must be set up; the ‘Australian Complex Autonomous Systems Safety Authority’ (ACASSA) for example, with the mandate of setting the standards, regulating, and conducting assurance activities for the “black box” behind autonomous and semiautonomous systems, across the air, land and maritime domains. This approach enables a consolidation of expertise regarding safety and assurance of autonomous systems, while traditional regulators continue regulating the actual physical aircraft, vehicles and vessels, operations, and traditional operators. This enables national consistency, and ensures innovation and opportunity across all three domains is facilitated through tailored regulation and access to significant expertise within Government. ACASSA should also be the Australian representative for international bodies and other international and Australian engagement on autonomous systems regulation.
[31] Butler. R, O’Brien. L, (2019) Understanding RegTech for Digital Regulatory Compliance. In: Lynn T., Mooney J., Rosati P., Cummins M. (eds) Disrupting Finance. Palgrave Studies in Digital Business & Enabling Technologies. Palgrave Pivot, Cham. (accessed https://link. springer.com/content/pdf/10.1007%2F978-3-030-02330-0_6.pdf, 27 May 2021)
Attention must also be given to supporting the maritime workforce through the transition to autonomous and remotely operated vessels, to implementing an appropriate qualifications framework, and ensuring there are high quality, accessible, training providers with suitable offerings. The ageing, depleted workforce of 2021 will not be able to service the vision of 2040. The Government must act to support the current workforce, and to grow it to ensure all required skillsets are available domestically, to ensure it is Australians at the helm (or keyboard) of these vessels into the future.
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• Identifying appropriate methods and requirements to test and trial autonomous systems, that properly match the risk of an operation with the level of assurance activity required;
• What should cyber-security requirements be, and how can they effectively support industry to avoid, respond to, and recover from threats and attacks;
• What skills and qualifications should operators of remotely operated vessels, and supervisors of autonomous vessels, hold;
• What role will autonomous systems have in emergency distress calls and providing support to other vessels, for example with reference to SOLAS obligations?
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• Data management, noting the huge volumes of data this technology will generate;
It will be critical to ensure collaboration and communication between ACASSA and traditional regulators. Two-way secondments between the parties should be introduced in order to ensure a seamless experience for stakeholders, consistent regulatory and policy development, and the upskilling of staff.
Supporting the Development and use of Autonomous Systems
• What is the best way to regulate emerging technology in Australia;
A Clear Government Mandate
[32] National Productivity Commission, National Transport Regulatory Reform: Productivity Commission Inquiry Report, No. 94, 7 April 2020 (accessed https://www.pc.gov.au/inquiries/completed/transport/report/transport.pdf, 26 May 2021)
• Whether current insurance rules and policies are workable, or if the insurance industry needs support to adopt an improved approach that facilitates rather than impedes technology use;
• How current and future Work, Health and Safety requirements apply to staff in a shore-based control centre operating one or more remotely operated vessels or supervising autonomous vessels[33];
• Identifying and addressing privacy concerns;
[33] The way WHS is managed in Air Traffic Control Centres should be investigated, to see if there are lessons that can be learned for shore-based control centres [34] Advanced Autonomous Waterborne Applications (AAWA initiative), Remote and Autonomous Ships: The Next Steps https://www.rolls-royce.com/~/media/Files/R/Rolls-Royce/documents/customers/marine/ship-intel/aawa-whitepaper-210616.pdf,(accessed 26 May transport2021) systems.”[32] Whether Government agencies are actually able to employ suitably experienced and qualified people in a niche, quickly changing field, where there is strong private sector demand, is a separate question. This new regulator will need to grapple with a range of unanswered questions, including:
The Commonwealth Government must provide a mandate to Government agencies and private industry to facilitate the development and use of autonomous systems. This mandate will clarify the Government’s proactive support for this technology, and 23
• How will autonomous platforms impact or challenge the ethics underpinning the fishing (including shellfish collection) industry; and
• What “competencies” and “authorisations” should the remotely operated and autonomous vessel's ‘system’ hold;
• Where liability for incidents [34], and in circumstances where provisions in applicable legislation are breached, should sit;
help organisations properly resource the development and change necessary. An example of where this mandate is needed is Australian ports. In order to receive business from autonomous vessels in the future, ports must have the necessary facilities, systems and technology in place. The upgrade process should already be underway, to ensure that early-technology demonstrator projects, for example the collaboration between Kongsberg and Yara on the Yara Birkeland, an electric autonomous shipping container vessel,[35] can be received in Australia, and to encourage other operators to bring their vessels, and accompanying economic activity, to our shores.
[35] Kongsberg, Autonomous Ship Project, Key Facts about Yarra Birkeland (accessed 21 June 21, https://www.kongsberg.com/maritime/ support/themes/autonomous-ship-project-key-facts-about-yara-birkeland/) 2021JuneHorne,RachelbycreatedImage
Transitioning from 2021 to the vision for 2040 will require the following advancements:
Conclusion Autonomous and remotely operated vessels are already in operation in Australia and around the world, and their capability and availability are rapidly growing. It is predicted that, by 2040, these vessels will be an integrated, integral part of the Australian maritime industry, leading to safer, more efficient, maritime operations, with less environmental impact. However, to achieve that vision, significant effort from Government, the maritime industry, and other stakeholders must be invested to put in place the regulatory frameworks, qualifications frameworks, skills base, and port facilities, that are required.
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Leveraging Australia’s talented technologists and innovators, maintaining a strong focus on building sovereign capability through multidisciplinary activities, and a Government-led, multi-domain effort to revamp Australia’s regulatory approach to emerging technology, will position the Australian maritime industry to take full advantage of the spectrum of safety, environment, efficiency, and economic benefits of autonomous systems technology.
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"Autonomous shipping must become culturally recognised, and it needs to become an appropriate norm in the industry. Such changes in mind-sets do not happen overnight, but there is indication that change is taking place as attention and wider public discussion around autonomous shipping is increasingly on the rise.”[36]
[36] Technical University of Denmark, A Pre-analysis on Autonomous Ships, 2017 (accessed https://www.dma.dk/Documents/ Publikationer/Autonome%20skibe_DTU_rapport_UK.pdf, 26 May 2021) [37] Advanced Autonomous Waterborne Applications (AAWA initiative), Remote and Autonomous Ships: The Next Steps https://www.rolls-royce.com/~/media/Files/R/Rolls-Royce/documents/customers/marine/ship-intel/aawa-whitepaper-210616.pdf,(accessed 26 May
These2021)advancements
“In other words, to fully realise the potential of autonomous shipping, the developed technologies must be deemed valuable by the wider marine industry as well as the society as a whole.” [37]
are within Australia’s reach, if a proactive, coordinated effort, led by Government, and incorporating industry and the community is enacted. If this effort is not put in now, for example because of distrust for new technology, fear about the impact on jobs, an inability to depart from ‘the way it has always been done’, or simply disinterest from the Australian Government, other countries, particularly those with more developed technological capability, will seize the advantage, and monopolise the opportunities on the table.
REFERENCES Advanced Autonomous Waterborne Applications (AAWA initia tive), Remote and Autonomous Ships: The Next Steps Pacific(ConferencecapableJudson.Network.RoadmapD.,C.,Cardier,Devitt,2F978-3-030-02330-0_6.pdf,(accessedBusinessminsRegulatoryButler.aisc.net.au/industries/transport/maritime,Insights:Australian26amsa.gov.au/sites/default/files/looking-ahead-2017-2027.pdf,operatingAustralianRegulatorytionalAustralianrate-plan-2020-21.pdf,(accessedAustralianMaywp-content/uploads/2020/08/MAR-SF-FULL-2019.pdf,(accessedAustralianand-technology/future-airspace-management/,https://www.airservicesaustralia.com/about-us/innovation-Airservicesper-210616.pdf,documents/customers/marine/ship-intel/aawa-whitepahttps://www.rolls-royce.com/~/media/Files/R/Rolls-Royce/(accessed26May2021)Australia,FutureAirspaceManagement(accessed26May2021)IndustryStandards,MaritimeSkillsForecast2019https://www.australianindustrystandards.org.au/272021)MaritimeSafetyAuthority,2020/21CorporatePlanhttps://www.amsa.gov.au/sites/default/files/corpo26May2021)MaritimeSafetyAuthority,AMSAResponsetoNaProductivityCommissionenquiryintoNationalTransportReform(2019)MaritimeSafetyAuthority,Lookingahead—AMSA’senvironment2017-2027(accessedhttps://www.May2021)IndustryandSkillsCommittee,NationalIndustryMaritime(accessedhttps://nationalindustryinsights.26May2021)R,O’Brien.L,(2019)UnderstandingRegTechforDigitalCompliance.In:LynnT.,MooneyJ.,RosatiP.,CumM.(eds)DisruptingFinance.PalgraveStudiesinDigital&EnablingTechnologies.PalgravePivot,Cham.https://link.springer.com/content/pdf/10.1007%27May2021)K.,Horne,R.,Assaad,Z.,Broad,E.,Kurniawati,H.,B.,Scott,A.,Lazar,S.,Gould,M.,Adamson,C.,Karl,Schrever,F.,Keay,S.,Tranter,K.,Shellshear,E.,Hunter,Brady,M.,&Putland,T.(2021).Trust&Safety.RoboticsforAustraliaV.2[forthcoming].RoboticsAustraliaGandHorne.R,‘Theregulatoryapproachforvesselsofautonomousandremote-controlledoperation’paper,InternationalMaritimeConference,2019). Horne. R, Putland. T, Brady. M, ‘Regulating Trusted Autonomous Systems in Australia’ (Conference paper [in progress]). Kongsberg, Autonomous Ship Project, Key Facts about Yarra Birkeland (accessed 21 June 21, viewcontent.cgi?article=1072&context=lib_reports)transformation,AWorldmous-ships-timeline/,(accessedRoyce,Walker.accessedwww.unmanned-ship.org/munin/about/the-autonomus-ship/,Unmannedaccessedutive.com/article/autonomous-ships-before-autonomous-cars,mousTheMayPublikationer/Autonome%20skibe_DTU_rapport_UK.pdf,mousTechnicalandRoads),StateMayments/RAN_WIN_RASAI_Strategy_2040f2_hi.pdf,egyRoyalship-intel-aawa-8pg.pdf,Rolls-Royce/documents/%20customers/marine/ship-intel/rr-nextRolls-Royce,pleted/transport/report/transport.pdf,7toryNationalabout-yara-birkeland/)maritime/support/themes/autonomous-ship-project-key-facts-https://www.kongsberg.com/ProductivityCommission,NationalTransportRegulaReform:ProductivityCommissionInquiryReport,No.94,April2020(accessedhttps://www.pc.gov.au/inquiries/com26May2021)ShipIntelligence:Marine,AutonomousShips–Thestep,2016(https://www.rolls-royce.com/~/media/Files/R/accessed26May2021)AustralianNavy,WarfareInnovationNavy,RAS-AIStrat2040(https://www.navy.gov.au/sites/default/files/docuaccessed262021)ofQueensland(DepartmentofTransportandMainQueenslandTransportandLogisticsWorkforce:CurrentFutureTrendsReport,November2018UniversityofDenmark,APre-analysisonAutonoShips,2017(accessedhttps://www.dma.dk/Documents/262021)MaritimeExecutive,‘Autonomousshipsbeforeautonocars?’,12September2017(https://www.maritime-exec26May2021)ShipOrg,Munin,TheAutonomousShip(http://26May21)Jon,AutonomousShipsTimeline–ComparingRolls-Kongsberg,YaraandMore,Emerj,22November2019https://emerj.com/ai-adoption-timelines/autono26May2021)MaritimeUniversity,Transport2040:Autonomousships:newparadigmforNorwegianshipping–Technologyand2019(accessedhttps://commons.wmu.se/cgi/ 26 FUTURE LEADERS WHITEPAPER
HuntLestercourtesy:Photo 27 FUTURE LEADERS WHITEPAPER
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[1]
Brendan Curtis
1. It has taken 15 years, but the consistent and targeted long term policies developed in partnership with industry have revitalised Australia’s maritime industry with the economic success founded on technology advances
THE AUSTRALIAN MARITIME ECONOMY IN 2040
3. A revitalised Australian shipping economy is dependent upon a skilled maritime workforce. Whilst crews can be sourced from other nations, Australians will pursue maritime pathways to achieve a wide breadth of skills and a rich depth of capability in technical and technological roles.
4. The strategic decision to invest in decarbonisation, alternative fuels and autonomous operations has Australian businesses well positioned globally with significant economic benefits. The potential to transition this technology into defence industries around the world brings significant economic multiplier advantage.
2. Australian shipping policies are not restricted by domestic or international borders, or what kind of activity the ship undertakes –there is an open embrace of every asset that floats as a driver of the maritime economic multiplier benefitting the nation.
5. Recognising Australia’s leadership in maritime technology and policy, a Technological Multiplier Effect Action Plan has been launched by the Australian government in partnership with industry with a $2B commitment to invest in Australian maritime R&D.
Predictions for the Australian maritime industry in 2040:
“Companies that have risen to global leadership over the past 20 years invariably began with ambitions that were out of all proportion to their resources and capabilities. But they created an obsession with winning at all levels of the organization and then sustained that obsession over the 10- to 20-year quest for global leadership. We term this obsession “strategic intent.” [1] Strategic Intent by Gary Hamel and C.K. Prahalad, Harvard Business Review, https://hbr.org/2005/07/strategic-intent
Summary of Australia’s Current Maritime Industry, Freight Task, and Decline of Shipping Fleet Australia has the fifth largest freight task in the world. An island nation with ~80 ports and 80% of the population living within 50km of the coast, along with an enviable natural resource endowment that underpins Australia’s exports, it has long been argued that a strong and sustainable maritime industry for Australia is paramount.
[2] https://www.bitre.gov.au/publications/2020/australian-infrastructure-statistics-yearbook-2020 [3] Australian Maritime Safety Authority https://www.amsa.gov.au/domestic-commercial-vessels-fleet-profile
A key challenge in reviewing the maritime industry, both within Australia, and between nations is that there is no unified definition of the maritime industry. For example, some analysis and reporting include aquaculture, fishing and seafood processing as part of the maritime industry assessment whilst these are excluded by others. Similarly, other studies consider ship broking, insurance, and maritime financial and legal services as part of the maritime Consideringindustry.justthe shipping task, in Australia, 98% of trade is undertaken via shipping. This is significantly higher than the global value of 90%. Port calls made by ships, both coastal and international voyages, increased by 46% from 2010. In the decade from 2007, loaded cargo more than doubled, whilst discharged cargo increased by 10%.[2]
But using these definitions and figures as measures of success is limiting in the context of 2040. An historic playbook constrains an agile industry. We know that over a 20 year horizon, many things in our fast changing world will evolve – new technologies will be created, new processes refined, new partnerships formed, new vessels, new engines, new fuels. What we can be sure of, is that Australia will still rely on the ocean for economic prosperity - we are an island nation after all. The technology multiplier effect will be the measuring stick for economic success in the Australian maritime industry in 2040. The driver of the maritime economic multiplier benefiting the nation will be an open embrace of every asset that floats. To unleash the sector’s full potential and to enable value by 2040, the industry stakeholders need to start working on these innovations now. There is much to be done to create these new workflows freed from the constraints of today’s ideas. The possibilities are endless.
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Introduction Reviewing the economic policies towards the maritime industry from comparative countries identifies how other countries have used policy settings to deliver a strong and sustainable maritime industry. But in 2021, Australia is different and opportunities for Australia to deliver a strong and sustainable maritime industry in 2040 and beyond will depend on technology.
Despite the growth in the freight task, the Australian registered trading fleet has been in steady decline over the past decade, from 33 in 2003 to 14 in 2016-17, although there are over 22,000 Domestic Commercial Vessels (DCV) registered in Australia.[3]
Traditional economic policies to protect the national flag
Favourable depreciation Favourable depreciation measures may include accelerated depreciation, advance depreciation, initial depreciation and enhanced rates for vessel acquisition.
Reduction in seafarers’ tax
Tonnage tax
A refund or exemption of income tax is made for seafarers as a mechanism to increase the competitiveness of wages without increasing costs for the shipowner. This is typically applied when the seafarer spends the majority of time outside their home country. Therefore, coastal trades are often not captured.
Typically, flagging in the second registry does not grant access to coastal trade but reduces the requirements for crew nationality.
A tonnage tax is a system by which a lump sum tax is based on the tonnage of a vessel instead of the profits generated. Countries that have implemented this regime typically give the shipowner the choice to opt for a tonnage tax or the traditional tax system. Applicability of the tonnage tax varies through jurisdictions, but in general requires a degree of ownership of the vessel, or an interest via bareboat charter. There is typically a requirement for a certain level of management activities regarding the vessel to be conducted in the country. Capital gains tax on the sale of vessels can also be treated separately from ordinary taxation under a tonnage tax regime.
Seafarer training subsidies
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Subsidy for deployment and repatriation of seafarers
Many countries have taken measures to protect the merchant fleet under their national flag by enhancing the international competitiveness of their shipping industries. Some of the most prominent are discussed below:
Some countries pay a contribution towards the costs of flights for seafarers from the port of disembarkation to their home.
Second or international registries
Subsidies towards the costs of training for seafarers, including wages for those in training, is payable under some nation’s policies.
Tonnage tax regimes generally require the vessel to be flagged under the nation’s flag, although exemptions are common where a majority of the fleet is flagged under the home nation.
Special exemptions or tax arrangements are available when a shipowner replaces an old vessel with a new vessel. Examples include a discount or deferral of tax on the income earned from selling a vessel if it is replaced with a new one.
Roll over relief
Many nations offer second or international registries in addition to their national registry to provide a reduced compliance burden, specifically regarding nationality requirements for crew including allowing wages payable to be comparable with their home country.
Australia has a number of policies to encourage vessels to be registered in Australia. These include the shipping exempt income tax incentive, accelerated depreciation and roll over relief, seafarer tax offset, and the Australian International Shipping Register (AISR).
[4] https://www.infrastructure.gov.au/maritime/business/tax_incentives/index.aspx [5] ATRF2016_Full_papers_resubmission_60 (https://www.australasiantransportresearchforum.org.au/sites/default/files/ATRF2016_Full_ [6]papers_resubmission_60.pdf)AustralianShipownersAssociation and Pwc: The economic contribution of the Australian maritime industry February 2015. https:// [7]mial.com.au/our-work/2015-economic-impact-analysisTheDutchMaritimeClusterMonitor2020Maritime by Holland . https://www.maritimebyholland.com/maritime/publications/ maritime-monitor-2020/
Comparison of Australia’s Policies
Accelerated depreciation provides shipowners with greater deductions in earlier years, and the roll over relief is intended to encourage shipowners to invest in new vessels to replace older vessels.
The AISR was introduced in 2012 with the intent to facilitate Australian participation in international trade by providing an internationally competitive register to encourage long term growth of the Australian shipping industry. Vessels on the AISR can operate with mixed crews although at least two senior positions, engineering and deck officers, are to be filled by Australians. Registration on the AISR does not grant access to coastal trade.
In comparison, the UK registered fleet increased from 379 to 629 between 2000 and 2007 following the introduction of effective policies. It has seen a decline in recent years, largely attributed to uncertainties regarding Brexit. The Dutch fleet grew from 650 in 1997 to 1047 in 2012 following the implementation of a tonnage tax,[6] and has remained reasonably steady since. Additionally, the fleet of Dutch owned foreign flagged vessels is also increasing. [7]
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The Seafarer Tax Offset allows Australian companies to claim a refundable tax offset for salary, wages and allowances paid to Australian resident seafarers who are employed to undertake overseas voyages. The intent is to reduce the cost of employing Australian seafarers thereby stimulating employment opportunities and enhancing maritime skills development [4] These incentives have failed to stem the decline of the Australian flagged fleet. One key criticism of the tax incentives is that they essentially operate as a tax deferral regime in that the benefit provided to the company is effectively taken away by a dividend withholding tax for non-resident shareholders or no franking credit for resident shareholders.[5]
The Shipping Exempt Income Tax Incentive allows certain income generated from shipping activities of eligible vessels to be exempt from income tax. To qualify, the crew management for the vessel must be undertaken in Australia, in addition to at least one of strategic, commercial, or technical management. Furthermore, the vessel must have a compliant training plan requiring at least one person per ship to undertake training in each of the categories of engineer officer training, deck officer training, and integrated rating and steward training.
[8] Crawford, T. (1982), Revitalisation of Australian Shipping: A n Overview, AGPS, Canberra [9] THE SENATE RURAL AND REGIONAL AFFAIRS AND TRANSPORT REFERENCES COMMITTEE Policy, regulatory, taxation, administrative and funding priorities for Australian shipping PUBLIC HEARING Tuesday 8 September 2020 2S3 Parliament House [10] Jacobsen, K., Lester, S., Halpern, B., “A global synthesis of the economic multiplier effects of marine sectors” Marine Policy 44, 2014 [11] Meyrick ASA Stage Two Report draft final 170408_pdf Arguments have long been put forward for maintaining an Australian fleet. One example is the 1982 Crawford Report of the Revitalisation of Australian Shipping.[8] A key area of concern in the discussion is the notion of a strategic fleet, and the ability of Government to commandeer vessels in time of national emergencies. This also extends to national resilience.
A global synthesis of the economic multiplier effect of marine sectors undertaken in 2013 examined data from 180 countries and found that the average economic multiplier effect for primary maritime activity was 1.82[10]
Historically and in the short term, the size of a registered trading fleet by country is a useful comparative measure but to use it as an indicator of success is to stymie ambitions currently unknown. Feverishly pursuing policy support to achieve an Australian flagged trading fleet has not been successful in the past and is unlikely to be successful in the future.
The evidence from nations that have arrested a decline in their shipping fleets is that revitalising the fleet takes time. This requires government to take a long term view with respect to policy formation, founded on the basis that an Australian shipping industry is a priority. From this, a consistent strategy with targeted policies can be developed in partnership with industry.
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Australia is already facing a skills shortage in the maritime sector with an aging workforce and a heavy reliance on international recruitment to fulfil roles. There is no doubt that there is an argument for an Australian flagged fleet based on domain resilience. However, there is evidence to suggest that a shipping sector, and the maritime cluster that develops around shipping, is economically valuable in isolation.
It would make sense that the Australian maritime economy in 2040 is not measured by the size of the registered fleet but by the technology multiplier effect. There will have been collaboratively developed with all stakeholders, a unified strategic intent/ problem statement. As a result of this focus, the number of Australian flagged vessels will grow because of the recognition that maritime is bringing to the Australian economy.
Another
Vice Air Marshall (Ret) John Blackburn AO in his address to the 2020 Senate Inquiry into Australia Shipping suggested that Australia is at risk due to its heavy reliance on international suppliers – and shipping – for key national requirements such as energy and fuel[9]. Furthermore, a domestic shipping fleet provides employment opportunities, and perhaps even more critical, training opportunities to develop the skills that are required both at sea and for roles ashore within the maritime industry. These include pilotage, tug, and port operations positions.
study that examined seven countries that have implemented policies targeted at supporting the shipping industry found that the maritime clusters contributed up to 10% of GDP and 5% of domestic employment.[11]
Recognising Australia’s leadership in maritime technology and policy, a Technological Multiplier Effect Action Plan has been launched by the Australian government in partnership with industry with a $2B commitment to invest in Australian maritime R&D.
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A revitalised Australian shipping fleet is dependent upon a skilled maritime workforce. It will be of sufficient scale to support and sustain the national appetite for skilled maritime expertise. In 2040, the maritime workforce has clear visions and pathways. The workforce has a depth of capability at the higher end, whilst crews from other nations are utilised at a seagoing level.
With a growing freight task and increasing pressure to reduce CO2 emissions, shipping provides an efficient yet under-utilised option for moving freight around Australia. The existing coastal trading policies have done little to protect the decline of Australian flagged vessels, whilst at the same time creating an administrative burden and expense for industry. The sticking points of proposed changes to coastal trading are typically Industrial Relations and Crewing. With a 2040 timeframe, there is the opportunity to agree long term objectives and design a policy setting to realise those objectives.
The Australian Maritime Future
The strategic decision to invest in decarbonisation, alternative fuels and autonomous vessels and remote piloting has Australian businesses well positioned globally with significant economic benefits. The potential to transition this technology into other industries around the world brings significant economic multiplier advantage.
Conclusions Australia is well regarded in its standing as a maritime authority with the capability of its seafarers highly regarded. A stable, longterm national shipping industry strategy that makes Australia cost competitive is fundamental to growing the national fleet. Nations that have achieved this have done so over a ten to fifteen year horizon. Whilst previous measures have been implemented, they have thus far proved ineffective. Taking a view to 2040, there is scope to develop a vibrant Australian shipping industry, and realise the associated economic benefits. The shipping industry is highly mobile and will gravitate towards the most commercially viable centres. Critics of tax incentives for an industry tend to focus on revenue foregone. However, where the tax base is already small, there is little to lose. With a shipping industry comes the opportunity for maritime clusters to grow. This enables Australian businesses to be well positioned for the future of shipping, in the areas of decarbonisation, alternative fuels, autonomous shipping and remote pilotage.
MillburnPaulbyPhoto
The industry must deal with historic inefficiencies and embrace uniquely Australian thinking and technology. The Australian maritime industry in 2040 needs to collaboratively address challenges, find economically viable solutions, whilst creating opportunities to realise the shared vision. Our geography is our friend and we need to leverage that. This is not government led. It is industry born and government facilitated. What this looks like in 2040 is unknown because much of the technology is unknown. What we do know is that industry collaboration facilitated by government will bring success to an industry that touches virtually every Australian.
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It is simple to measure the success of Australia’s national fleet policies against comparative maritime nations – we fail, dismally. But that is where we wrongly define ourselves by current market measures.
Stuart Neil, Communications Director, International Chamber of Shipping BE
PRIORITISED: The Australian marine industry is positioned at the forefront of political discussions
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Predictions for the Australian maritime industry in 2040:
“Shipping is an industry in transition, you need to find ways of communicating so that people understand the complexity. Where shipping operates isn’t where the people are, that exemplifies why we have a problem. To some extent it is an opportunity because people don’t understand the scale of the business.”
1. COLLABORATE: An umbrella body for all marine sectors has been established which has a direct and open dialogue with governments, industry and community. The awareness of the ‘blue economy’ has improved for all participants largely due to a shared vision and working together appropriately to achieve cross industry goals
2.
THE AUSTRALIAN MARITIME INDUSTRY MUST
Ewen McCarroll
3. SHARED: The industry prioritises communications with a shared strategic goal-driven message
HEARD IN 2040
Collaboration: An Umbrella Body for Industry “The AFL structure could be good. They have an overarching body that looks after a group of disparate but demanding organisations that are underpinned by a game. I think that would work well for Australian maritime.”
Introduction
An integrated and strategic communications plan driven by industry will position the Australian marine sector at the forefront of political discussions and ensure that the Australian marine opportunity is achieved.
Problem Statement
[1] http://www.ga.gov.au/scientific-topics/marine/coasts-estuaries [2] https://www.tandfonline.com/doi/abs/10.1080/18366503.2019.1686196
Although this will be challenging, not acting as a unified voice will result in the continuing lack of awareness of the industry as a whole, and commercial shipping in particular.
In 2040, with cohesive communication, Australia’s maritime industry will be revered at home and abroad, supported and invested in by all levels of government and highly regarded by all Australian citizens. The goals of the industry will be achieved because of the succinct messaging and shared objectives developed by all industry participants.
To achieve this by 2040, industry needs to act now and work strongly together, resolving differences and acknowledging that working as one will be for the betterment of the industry, the Australian economy and Australian citizens.
We know that Australia, is an island nation with a coastline of over 34,000 kilometres in length[1]. We have a search and rescue region that covers more than 10% of the Earth’s surface and is the third largest on earth. We know that as much as Australians love the ocean and marine activity, there is a perceived lack of awareness (and therefore appreciation) of the marine industry’s contribution to the Australian way of life. This is especially relevant to commercial shipping. Unfortunately, the general public don’t tend to give much thought to how the newest pair of designer shoes or the latest mobile phone models end up on store shelves. We know, at all levels, there is ‘Seablindness’[2] where the sense of the sea and surroundings is not generally apparent to citizens, policy makers or politicians - although not exclusively an Australian phenomenon, it is certainly evident. We know that vessels in particular will change dramatically in the next 20 years due to a change in fuel sources and other technological developments. These developments will more than likely create an added cost to end users. We know that advocacy work and policy input is Wedifficult.knowthat there are over 20 membership organisations who represent the various sectors of the marine industry. We know these organisations rarely work together.
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Air Vice Marshal John Blackburn AO (RTD) MDEFSTUD, MSTRATSTUD
The maritime sector is a deeply historic sector and the organisations that work within it have evolved over decades, often centuries.
Within Australia, there are numerous associations and Industry bodies representing the interests of thousands of maritime operators. There are also multiple state and federal government agencies involved in the regulation of the maritime sector. As an example, an operator working in a river system in Victoria needs to consult with 17 different government bodies to gain approval. With this many players it is easy to understand why communication is not effective.
Even from the outset, there are so many terms to describe Australia’s ocean going business: maritime, shipping, offshore, marine, blue economy. We know that Australia’s indigenous population had a relationship with the sea, calling it ‘sea country’. In 2040, there needs to be one name that encompasses the entire industry sector. One set of figures, one agenda and one message that every player has agreed to. Each participant in this new marine ecosystem benefits as industry works towards shared goals. This foundational change will create opportunities for innovation and collaboration never previously thought possible and will further accelerate improvements for all stakeholders. The common foundation will also provide much needed stability and predictability whilst still allowing participants to define and refine their goals. This will inevitably lead to an inherently more productive, cohesive and attractive industry. The inward looking and territorial behaviours previously accepted have gone. The industry has a single voice with government, the public and stakeholders opening the door to existing and emerging businesses.
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“I do not see in public anywhere near adequate understanding of the criticality of the maritime sector to our economy, to our security, to our well being. It is just not there. I don’t see a willingness [for industry]to work as a team; to act together for the common good. There are arguments against each other the whole time in the parliamentary enquiries that have been made.”
“If you don’t like what’s being said, change the conversation” Don Draper, Mad Men. The clarity in messaging will stop all the chatter within industry and ensure communication reaches the audience. The benefit of industry efforts being concentrated is that there can be multi-pronged approaches to the target audience of government ministers, policy makers, CEOs, and industry leaders.
Prioritised:
The Australian Blue Economy is Positioned at the Forefront of Political Discussions With one body representing the entire industry, and all the players talking the same language, with the same priorities, the message is amplified. Communication is positive, evidence based, practical, equitable across the various sectors and focussed on success. This repeated confident presentation of the Australian maritime industry will result in audience traction. Of course there will be refinements and adjustments but these alterations will be done collaboratively within the umbrella industry body. Everyone will be working towards a common goal.
In June 2020, Singapore’s Transport Minister Khaw Boon Wan responded directly via his Facebook page to the Financial Times article 'Shipping industry warns of trade logjam as crews remain stranded'[3]. In his post, the minister signalled the Singaporean Government’s intent to facilitate larger crew changes via chartered flights in accordance with the protocol set out by the International Chamber of Shipping.[4]
Over the last 15 years we have seen the impact that social media has had on the way society communicates. It’s difficult to pinpoint what will happen in this landscape by 2040, few would have predicted the resurgence of sea shanties for example, but we already know a sporadic twitter feed isn’t enough for organisations. The maritime industry must be early adopters of emerging media platforms and must evolve with the media landscape.
Danish Shipping are leaders in the Maritime industry in this regard and set an example that should be followed. Danish Shipping have racked up millions of views on their YouTube videos, whilst their channel boasts nearly 18,000 subscribers. As well as embracing mainstream and social media, the maritime industry should look at expanding its marketing footprint. This may be the most difficult aspect to implement as there is no single ‘product’ but perhaps it could be the single ‘problem’ that the marketing effort focusses on.
A consequence of this concentration will be media interest outside of trade press, which by default gains the interests of the general public. Telling the human side of the story will enhance the messaging. At the height of the COVID-19 pandemic in 2020 the maritime industry saw an increase in media coverage with outlets picking up stories focusing on the struggles faced by seafarers.
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[3] Peggy Hollinger, Robert Wright and Michael Pooler in London JUNE 8 2020. https://www.ft.com/content/4f2e33a6-e1f7-407f-b2af[4]8aac31e0d8eehttps://www.straitstimes.com/singapore/transport/coronavirus-3000-cases-of-crew-change-approved-in-singapore
In 2040, the maritime industry messaging will have moved outside of trade and industry publications. Mainstream media, social media and new and emerging media that doesn’t yet exist will be utilised.
Stuart Neil, Communications Director, International Chamber of Shipping Australian Shipowners Association and Pwc: The economic contribution of the Australian maritime industry February 2015.
[5] https://www.facebook.com/media/set?vanity=boonwankhaw16&set=a.3193333970725801 [6]
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“There’s an awful lot of people [in shipping] talking to themselves and then wondering why no one understands.”
Shared: The Need for an Holistic Approach to Messaging In Australia, the layers of government tend to be siloed, the individual sectors tend to be siloed and even within each sector, the owners and operators tend to be siloed. There are forums for the various marine industry groups to meet but they are more for information gathering rather than creating a united front. Often reports and data are presented with different numbers. For example, according to the Australian Industry Skills Committee, the sector has an estimated annual revenue of $6.88 billion and added approximately $2.32 billion to the Australian economy in 2018.[5] Price Waterhouse Coopers (PWC) undertook a survey in 2015 for the Australian Shipowners Association (ASA) that indicated that the maritime sector contributed $20 billion in direct and indirect revenue in 2012-2013 and that there were 45,000 direct and indirect employees.[6]
[8][7]https://mial.com.au/our-work/2015-economic-impact-analysishttps://www.aims.gov.au/sites/default/files/2018%20AIMS%20Marine%20Index.pdfIbid.
The AIMS Index of Marine[7] looks at the entire marine industry from published reports, and in 2018 “estimates that the marine industry is worth $68.1 billion and prior to COVID-19 was one of the fastest growing parts of our economy, and as a whole, is larger than Australia’s agricultural sector.” The study takes a broad view of the marine industry[8] which is the income that is directly earned whilst also considering the flow-on and total economic contribution of the marine industry to the national economy.
“It is recognised that for every dollar earned by marine industry, activity is also stimulated elsewhere in the economy” 2018 AIMS Marine Index 40 FUTURE LEADERS WHITEPAPER
It is much more powerful to join up with other organisations and amplify the message. In this role we are all talking the same language: marine sovereignty, security, skills, so surely we are better to work together? Rather than tackle the problem head on, one approach that has been adopted by business from warfare, is to find tools, resources, knowledge and behaviour that gives an asymmetric advantage. There needs to be people involved who complement the industry rather than primary participants. If industry could identify a singular problem, we could then start to raise awareness and build a network surreptitiously. When there’s momentum, a campaign can then be started.
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[9] broadevidence,informationAIMS196,000directlyTimeindustry’sThe[11][10]AIMShttps://apo.org.au/sites/default/files/resource-files/2015-08/apo-nid66415.pdfAIMSAIMSreportalsoestimatesthemarinetotalemploymentas393,000FullEquivalent(FTE):197,000FTEworkersemployedintheindustry,withafurtherFTEworkersinindirectemployment.[9]Iftherewasunitedmessaging,itwouldmakesensetoalwaystalkaboutanindustryworth$68.1Billionratherthan$6.88Billionin2018.Directandindirectemploymentnumbersof363,000aremoreinfluentialthan45,000.TheNationalMarineSciencePlan2015-2025predictsthatthe‘BlueEconomy’willbeworth$100billionin2025.[10]writesthat“GoodpolicyrequiresgoodifitistobefoundedonsolidbewellimplementedandreceivesupportacrossAustraliansociety,” [11]. Can you
“But societal change doesn’t get driven at a political level, it only gets driven by the public. A lot of politicians will ignore you until there is a crisis, so you need a lot of community discussion, and then the communities will go to their local member. The criticality of the sector is so important, there’s no land bridge to Australia.”
Air Vice Marshal John Blackburn AO (RTD) MDEFSTUD, MSTRATSTUD imagine if this was the common message for all marine industry including shipping?
Despite technological advancements, seafarers and maritime workers will remain the most important commodity the industry has in 2040. Telling human stories must be a focal point of the maritime industry’s communications strategy. Who does the Maritime Industry need to Communicate to? The messaging outlined above must be delivered to a more diverse audience for the industry to be strong in 2040. Communicating with governments will remain as important as ever, however the maritime industry also needs to shift from talking inwardly to itself if it expects to be heard and understood on a broader scale.
“Maritime shipping is fundamental to our resilience, absolutely critical, but most Australians would not know it.”
Whatever the message, the maritime industry mustn’t be content with talking inwardly to itself via trade and industry publications.
“We need a bumper sticker slogan. Short and sweet. I’m not asking you to read a bunch of stuff, I’m just asking you to know that most of the stuff you have, came to you on ships.”
John Lines AM former CEO/Managing Director of ANL
Kathy Metcalfe, President and CEO of the Chamber of Shipping of America
Stories which talk to the heart more than the head will often grab the attention of a broader audience and those in power.
Positive stories must be seen and heard in mainstream media. The industry must realise the importance of employing communications professionals to deliver and control the message and to harness community support.
Emphasising the importance of the industry to the economy will remain the most important message to governments at both state and federal level. This is often easier said than done. Securing time in front of politicians can be difficult however, when you have scale, because all maritime industries are covering the same issues, there will be success. This is demonstrated by Port of Newcastle who have altered their business model to get political traction.
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A new generation will be part of the maritime workforce by 2040. The industry must deliver its message to a younger audience now to raise awareness and attract the next generation.
Conclusion A new communications approach will require a cultural change within the maritime industry.
The funding model for strategic communication can be sourced by the umbrella body through a levy. If all of the marine industry is combined, there would be a membership of almost 400 organisations – a small fee would enable the budget development for an effective communication campaign.
The industry can use this example and should aim to direct Association/Industry body policy and strategy experts who have experience in governments' inner workings to ensure the message is heard.
An industry that isn’t accustomed to speaking outwardly to a wide audience will need to be bold to enact such a strategy. The industry must become the story teller and build trust with its audience in order to maintain a positive narrative both politically and socially.
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With an increased awareness and unprecedented trust, there needs to be a call to action for the industry to collaborate by appropriate means to achieve shared goals and continue to empower future shipping participants.
Succeeding with this approach will help deliver a strong and sustainable maritime industry in Australia in 2040.
CEO Craig Carmody has held senior federal government roles including Director of Policy in the Prime Minister's office and as a senior policy adviser to ministers for infrastructure and transport. When it comes to communicating with politicians, Carmody says “you can’t wing it.” As well as undertaking their own polling, Carmody has put together a team of political experts at the Port of Newcastle. “Every time parliament sits, I have three of my people down there,” he said in March, 2021.
3. Integrated vessel arrival systems (facilitation of just in time arrival) across all Australian ports to minimise anchor use, increase operational energy efficiency and reduce voyage emissions by 2040.
1. Providores and other suppliers that provide stores and maintenance equipment and supplies for use on commercial vessels are ‘waste free’ by communicating early and harnessing the buying power of shipowners and operators to demand sustainable and responsible replenishment.
Predictions for the Australian maritime industry in 2040:
“Right here, right now is where we draw the line. The world is waking up. And change is coming whether you like it or not.” Greta Thunberg, Activist THREE THINGS AUSTRALIA NEEDS TO ADOPT BY 2040 TO MINIMISE THE ENVIRONMENTAL IMPACT OF SHIPPING (ABOVE AND BEYOND IMO’S ENFORCEMENTS)
Laura Allen
2. Ship design and adoption of nano-surface technology will result in significant opportunities for the industry to increase efficiency and reduce marine biosecurity risks with the delivery of financial benefits to shipowners and operators.
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By 2040, shipowners and operators will be committed to a range of operational practices and applications of new technological developments that minimise their impact on the environment, above and beyond that which is required under maritime legislation. Furthermore, the required broad institutional and legislative frameworks that facilitate concepts such as the circular economy, will exist to enhance the business case for change.
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“$700 million is the annual material cost savings that could be realised in the fast paced consumer goods industry with the implementation of a new circular economy.”
Ellen Macarthur Foundation ‘What is the circular economy?’[3] [1] https://media.amsa.gov.au/media-release/shipping-company-and-chief-officer-convicted-dumping-garbagegreat-barrier-reef-0 [2] https://www.imo.org/en/MediaCentre/HotTopics/Pages/Sulphur-2020.aspx
Background The IMO enforced a sulphur cap at the beginning of 2020 to “limit the sulphur in the fuel oil used on board ships operating outside designated emission control areas to 0.50% m/m (mass by mass) - a significant reduction from the previous limit of 3.5%”
“Australians and tourists alike visit Lady Elliot Island to swim with mantra rays and turtles – not blended food waste from merchant ships.”
Allan Schwartz, Australian Maritime Safety Authority [1]
[3] The New Plastics Economy, Rethinking the Future of Plastics, Ellen MacArthur Foundation
The legislation and regulations in the global shipping industry have frequently been developed in response to catastrophic disasters. But with the advancements in technology and increased community desire for transparency in resource use and environmental impacts across the supply chain, the Australian shipping industry is presented with an opportunity to launch initiatives that are above and beyond global legislation. Global trade is underpinned by international shipping and must continue. Our transition to a sustainable, zero impact industry is only limited by our imagination and, in a practical sense, the willingness of industry and government to accept financial risk, target issues in a holistic sense and ensure the necessary investment flows to the development of the technological solutions that will get us there.
[2]. While it is worth noting that that this remains a much higher allowable sulphur content than landbased transport, the International Maritime Organization (IMO) has turned its attention to the need to phase out carbon emissions “…as soon as possible in this century…” via the Initial IMO Strategy on the Reduction of Greenhouse
Gas Emissions from Ships.[4] So far, the IMO has mostly focussed on increasing the energy efficiency of new ships, but new regulations will require shipowners to reduce emissions from their existing fleet. It is also increasingly likely that very strong economic incentives will create the necessary conditions and certainty to support investment decisions that accelerate the development of zero emissions fuels such as green hydrogen and ammonia.
The International Convention on the Prevention of Pollution from Ships (MARPOL)[7] prohibits the discharge of waste at sea and requires ships to have a garbage management plan.
It has been estimated that, in a businessas-usual scenario, the ocean is expected to contain one tonne of plastic for every three tonnes of fish by 2025, and by 2050, more plastics than fish (by weight)[6] Garbage waste is generated on board ships through cargo operations, consumption of stores (including food and drink packaging, cleaning and sanitation products) and maintenance equipment and supplies.
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There are many examples where the Australian maritime industry has led the way in environmental management, possibly due to the high value the Australian community places on protection of the marine environment.
The need for compliance with international and domestic legislation is a given, however there are many opportunities for the Australian shipping industry to ramp up action on environmental initiatives and significantly reduce its impact on the Australian Thisenvironment.papermakes predictions in three separate areas, where the shipping industry has direct and indirect impacts on the environment and suggests initiatives and research and development areas that may assist the industry on its path to zero impact.
Voluntary, and then mandatory ballast water management requirements to minimise the risk of translocation of invasive marine species, were first implemented in Australia in 2001. Ballast water management is now the subject of a major international convention –The International Convention on the Control and management of Ships’ Ballast Water and Sediments. [5]
While there is always an element of concern over effective implementation, for example, Seas at Risk state that “50% of marine litter in the EU busiest basins comes from ships”[8] , 46
[4] https://www.imo.org/en/MediaCentre/PressBriefings/Pages/06GHGinitialstrategy.aspx [5] [8][7][6]Water-and-Sediments-(BWM).aspxhttps://www.imo.org/en/About/Conventions/Pages/International-Convention-for-the-Control-and-Management-of-Ships%27-Ballast-TheNewPlasticsEconomy,RethinkingtheFutureofPlastics,EllenMacArthurFoundationhttps://www.imo.org/en/About/Conventions/Pages/International-Convention-for-the-Prevention-of-Pollution-from-Ships-(MARPOL).aspxhttps://seas-at-risk.org/general-news/new-port-reception-facilities-proposal-what-does-it-mean-for-sea-sourced-marine-litter
Prediction 1: Waste Free Shipping Supply
The urgent need to tackle carbon emissions will ultimately result in a move away from the use of fossil fuels and consequentially, drive further improvement in other emissions types, such as sulphur.
The long asset life of ships (around 25 year) and the necessary lead in time for the approval of new ship designs and technology, means that ships and ship technology that will be deployed and in operation in 2040, will be in the early development phase now.
While there are likely to be significant challenges encountered along the way, such product stewardship programs exist in land-based industries and could certainly be applied progressively across the ship supply and service industry. To meet a 2040 target for full implementation, due to the complexity and international nature of the ship supply and service network, work should begin on this program immediately.
Ballast Free Ship Design
Prediction 2: Ship design that improves efficiency and reduces marine biosecurity risks
Ship Design for Marine Biosecurity
Measures taken by shipowners and operators to minimise the transfer of marine species, such as the use of ballast water treatment systems and antifouling hull coatings, contain potentially harmful chemicals that are discharged or leach into the marine environment. While a single discharge or exposure is unlikely to have significant impacts, in areas of high shipping activity the potential exists for the accumulation of harmful substances in the water column and sediments. The 2040 ship could continue to manage marine biosecurity risk while also avoiding the cumulative impact of the discharge of toxins and heavy metals through ship design and the application of cutting-edge technology.
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Through a collective effort between ship owners and operators, port waste reception facility service providers, ship stores suppliers and manufacturers of shipboard consumables, to develop minimalised and alternative packaging, ensure ships in port can access reusable and recyclable materials, and port waste reception facilities are well connected to recycling services, the industry in 2040 can be expected to be close to waste free.
There are significant cost and environmental benefits to be realised through ship design that is ballast free and incorporates advanced nano technology that intrinsically inhibits biofouling attachment.
Ballast has been used for centuries – initially in the form of rocks placed in the ship's hull, but more recently, seawater taken up in the cargo discharge port. The contemporary ship takes on ballast water as it discharges cargo, and discharges ballast as it loads cargo, ensuring the ongoing stability, manoeuvrability and structural integrity of the vessel. Unfortunately, as it takes up water from the cargo discharge port, it also takes up any organisms present in the water column. This water, including any organisms present having survived the journey, is then discharged at the next cargo loading port. If the environmental conditions allow it, those organisms may then survive and establish outside their native range with the potential to display invasive behaviour with resulting impacts on the natural environment and industries.
Between now and 2040, it will be critical that shipowners effectively communicate their waste free goals to their suppliers and use their collective buying power to force suppliers to find alternatives to products and packaging. Suppliers must be afforded sufficient notice to adjust their operations and influence production further down the supply chain.
a great deal more can be achieved through better procurement policies for stores and other supplies that have a focus on waste minimisation at source.
The concept of a ballast free ship is outlined in the image below. Ambient seawater flows slowly through open ended cavities that sit below the vessel’s cargo hold. The ballast cavities are flooded in ballast conditions, and the difference in hydrodynamic pressure means that the water constant flows out of the cavity and is replaced with new ambient seawater. As a result, when loading cargo, water that is expelled from the ballast cavities is locally sourced and contains only local Therespecies.aresignificant costs associated with running ballast water treatment systems, including installation, supply of active substances, maintenance, training, and an axillary power requirement. Ballast free ships can avoid these costs.
Vessels manage biofouling using antifouling paints, most of which work by leaching tiny amounts of toxic substances such as copper compounds to deter the settlement and establishment of marine organisms on the underwater surfaces. Antifouling paints are usually highly effective on the main hull surfaces but can be less effective on edges and inside irregular areas such as sea chests. Quality antifouling coatings are very costly, and as described above, can cause cumulative build-up of heavy metals in port sediments. Minimising biofouling is also a critical aspect of efficient ship operation. The existence of marine growth causes hull roughness which increases friction, resulting in greater use of power to push the vessel through the water. A clean hull, free of fouling means a more energy efficient Scientistsvessel.have discovered that the surfaces of some marine organisms have natural antifouling properties. Observed under an electron microscope, the surfaces of these organisms are characterised by possessing a particular nano structure with ‘non-stick’ properties. Imitating these nanostructures with substances and materials in the form of a coating and applying it to ship hulls and other underwater surfaces, would result in a nontoxic and highly effective antifouling coating.
InsightMarineSource:
While the development of these types of products is in its infancy, the ship of the 2040 would effectively minimise biofouling
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Biofouling Prevention through Nano-Surface technology Biofouling occurs when marine organisms settle on the underwater surfaces of ship hulls and internal seawater systems. When these organisms detach or spawn in new areas, if the environmental conditions are right, there is potential for these organisms to survive and establish outside their natural range with possible consequential impacts as explained above.
Integrated vessel arrival systems allow ships to communicate with loading ports to secure berthing windows based on the particular vessel's optimal economic speed. The berthing window is secured prior to embarking on their voyage from the previous departure port. This allows a vessel to maintain economic speed throughout the voyage, significantly increasing efficiency and reducing emissions.
associated biosecurity risk, reduce chemical leaching into the marine environment and increase energy efficiency with the use of hull coatings that employ nano-surface technology.
Conclusion There are many reasons to feel positive about the future sustainability of the shipping industry. Through a combination of existing technology, the application of new thinking regarding efficiency of supply chain and the adoption of scientific advances in surface technology and ship design much can be achieved. The policy and regulatory environment that the 2040 ship operates within will match community expectations of very low impact shipping, so that the business case to justify any additional upfront costs in relation to vessel design and materials will stack up over the life of the vessel.
Prediction 3: Vessel Arrival Systems
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Vessels are often required to set anchor within a designated anchorage and stay at anchor for days, even weeks at a time due to port congestion, berth availability and limitations on cargo loading capacity at the port. There are also competitive pressures at play between ships vying for early berth access to load, which can see ships steam to port at high speeds, consuming excessive bunker fuels but ensuring early arrival at busy ports to secure an early loading window.
The steps towards zero impact shipping must consider marine biosecurity, chemical discharge and leaching, and energy efficiency. Through the design and construction of ballast free vessels and the application of nano-surface technology, important strides can be made.
A vessel utilising an integrated vessel arrival system will also have greatly reduced, if any, time at anchor. Less ships at anchor will reduce the need for large areas of coastal waters needing to be put aside as anchorages and as a result, will vastly reduce the area of seabed environment severely damaged by anchors and the scouring of anchor chains.
Vessel anchoring can have significant impacts on the seabed environment. The scouring of the seafloor that occurs as a result of movement of the anchor chain across the seafloor disturbs the physical environment, preventing the establishment of a productive natural benthic environment.
As more and more 2040 vessels adopt zero carbon fuels, the case for any anchoring becomes reduced. Through the 2040 vessel we will see increased application of dynamic positioning in cargo ships, using the vessel’s thrusters to balance the wind, wave and current to automatically maintain the vessel position, combined with the pinpoint accuracy of precise positioning GPS feeds, to eliminate the damaging effects of anchoring.
The MIAL Future Leaders Whitepaper –Predictions for the Australian Maritime Industry in 2040 provides thought provoking insight into the future. By 2040 the Australian maritime industry will be technologically enabled and focussed on continuous improvement, with broad community and political support. Autonomous, semiautonomous and remotely operated vessels will be commonplace, removing people from dangerous environments, supported by smart ports, shore based control centres, and a skilled workforce. New types of jobs will have emerged, and a new qualifications and training framework will be in place to support it. By 2040 the mindset around the Australian maritime industry will have shifted to recognise it as one of exceptionally high-value to the nation.
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CONCLUSION
The industry will continue to evolve, as it always has, and engaging our best and brightest to champion the maritime industry and lead our future will ensure success and prosperity, not just for the maritime industry, but for our maritime nation.
The exploration of issues, analysis of ideas and predictions made in the Whitepaper will hopefully assist governments and businesses to support the industry into the coming decades and position it well to serve the Australian community.
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