Logistics & Materials Handling April 2015

LM0415_001

- 1

2015-03-19T09:43:51+11:00

logisticsmagazine.com.au

inside VOL45 ISS2 APRIL 2015

L M0 4 1 5 _ 0 0 1 _ S E W

-

1

2 0 1 5 - 0 3 - 1 1 T1 4 : 2 2 : 5 1 + 1 1 : 0 0

Materials Handling Access Equipment Warehousing and Design Data Management

Less is more with

MOVIGEAR速

sew LMH 4.15 frtcvr movigear.indd 1

11/03/15 10:37 AM

LM0415_000_TOY

-

1

2015-03-11T14:25:30+11:00

M A T E R I A L

H A N D L I N G

S O L U T I O N S

Quality, durability and reliability.

Three reasons why we’re number one.* Whether you require a single forklift or an entire fleet, we want to show you why Toyota Material Handling is Australia’s number one forklift company.*

With leading safety and technology, our forklifts are built to the same exceptional standards of quality, durability and reliability as Toyota’s automotive products.

We’ve got Australia’s biggest range to provide you with the best possible material handling solutions, plus customer service and parts support that is second to none.

To find out more about what makes us Australia’s number one* and how we can help your business, contact your local Toyota Material Handling branch today.

1800 425 438

S O L U T I O N S

www.toyotamaterialhandling.com.au

F O R

E V E R Y

P A L L E T®

*AITA Statistics Ytd December 2014

TMH0622 Solutions_QDR_L&MH.indd 1

4/03/2015 2:52 pm

LM0415_003

- 3

2015-04-01T08:05:30+11:00

This issue April 2015

Fleet management Who’s managing your fleet?

16

behindthecover L M0 4 1 5 _ 0 0 1

-

1

contents

2 0 1 5 - 0 3 - 1 9 T0 9 : 4 3 : 5 1 + 1 1 : 0 0

04 Bulletin Board logisticsmagazine.com.au

inside VOL45 ISS2 APRIL 2015

L M0 4 1 5 _ 0 0 1 _ S E W

-

1

2 0 1 5 - 0 3 - 1 1 T1 4 : 2 2 : 5 1 + 1 1 : 0 0

Materials Handling Access Equipment Warehousing and Design Data Management

06 Bulk Handling New conveyor drives at Loy Yang Smart drive systems procurement 10 Access Equipment Australian compliant platforms 11 Materials Handling First choice in skid steers

14 Warehousing and Design DHL’s new supply chain campus 17 Data Management Checkpoint’s RFID tech Prometheus and the Asia-Pacific connection 19 Supply Chain Insurance Preparing for the worst

Less is more with

MOVIGEAR®

sew LMH 4.15 frtcvr movigear.indd 1

11/03/15 10:37 AM

Less is more with MOVIGEAR®: Are you under pressure to reduce costs in your facility? SEW-EURODRIVE can help! The MOVIGEAR® Mechatronic Drive System substantially reduces your inventory with its ability to cover a broad range of gear ratios with a single unit. Independent research has also proven that the MOVIGEAR® reduces start-up and operating costs in materials handling by 20-30%. So, relax...We’ve got this! Call 1300 739 287 to speak to your nearest SEW-EURODRIVE representative or visit www.sew-eurodrive.com.au for more information.

earthmovinglogistics Pushing forward: Dressta sets new sights on Australia

12

ASSOCIATE PUBLISHER: Martin Sinclair e martin.sinclair@cirrusmedia.com.au EDITORIAL CO-ORDINATOR: Ben Hagemann t 02 8484 0884 e ben.hagemann@cirrusmedia.com.au GRAPHIC DESIGNER: Dave Ashley t 02 8484 0710 e david.ashley@cirrusmedia.com.au KEY ACCOUNT MANAGER: Tim Richards t 02 8484 0829 e tim.richards@cirrusmedia.com.au QLD ADVERTISING MANAGER: Sharon Amos t 07 3261 8857 m 0417 072 625 f 07 3261 8347 e sharon.amos@cirrusmedia.com.au PO Box 3136, Bracken Ridge, Qld 4017 PRODUCTION CO-ORDINATOR: Mary Copland t 02 8484 0737 e mary.copland@cirrusmedia.com.au All rights reserved. No part of the publication may be reproduced or copied in any form or by any means without the written permission of the publisher.

ISSN 1832-5513 Copyright Cirrus Media. Published by Cirrus Media. (ABN 80 132 719 861) Tower 2, 475 Victoria Avenue, Chatswood, NSW 2067 Australia Locked Bag 4700 t 02 8484 0888 f 02 8484 0633. Printed five times a year, Logistics & Materials Handling is inserted in the February, April, July, September and November 2014 issues of Manufacturers’ Monthly, FEN, Australian Mining, Food, and PACE magazines with a distribution of 14,901.

logisticsmagazine.com.au

FOLLOW US ON

facebook.com/ logisticsmagazine

twitter.com/ logistics_au

Average Net Distribution Period ending Sept ’15 14,901

April 2015 Logistics&MaterialsHandling | 3

LM0415_004

- 4

2015-03-19T09:44:49+11:00

bulletinboard LOGISTICS AND MATERIALS HANDLING NEWS FROM AUSTRALIA AND AROUND THE WORLD

Melbourne Port increases rent 750 per cent ONE of the world’s biggest stevedoring

not directly impact on the price asked of

companies has been hit with a massive rent

legacy stevedores to operate at the port.

increase which will make the Port of Mel-

“This issue has been raised repeatedly by

bourne the most expensive port in the world.

senior members of the logistics industry.

DP World managing director Paul Scurrah

“This matter highlights the need for

said the rent increase was around 750 per

the logistics industry to be engaged in all

cent.

consultations with government on the future

“I thought there was a decimal point

lease of the Port of Melbourne, including

missing when I saw the rent increase for the

arrangements for pricing, lease structure and

first time, and there needs to be common

proposed regulatory frameworks.

sense prevailing around any increase in

“Too often in the past when these

rental,” he said.

processes have commenced, the logistics

“We have had rental increases before and there is provision in the contract to negotiate

industry has been locked out of discussions Managing director Michael Kilgariff said

“Any proposed rental increase, particu-

on the grounds of ‘probity’.

rental fees every two years, but an increase

ALC was generally supportive of the Port’s

larly of this magnitude must be visible and

of this size will cause job losses and may see

long term lease as a way of unlocking much

transparent, and we are concerned that pro-

mitted to involving the logistics industry in

shipping companies avoid using the Port.

needed funds for logistics infrastructure

posed new rents at the Port of Melbourne

this process and this matter reinforces how

in Victoria, but that rental increases would

appear to be linked to rents allegedly paid

important it is for that to occur.”

bourne have caused concerns to be raised

undermine supply chain efficiency by affect-

by new entrants to the stevedore market,”

by The Australian Logistics Council (ALC),

ing the ability of industry to make long-term

he said.

the peak industry body for freight logistics

commercial decisions about their operations

industry.

at the port.

The rental increases at the Port of Mel-

“The Victorian Government has com-

Kilgariff said the focus needs to be on the efficiency of the entire supply chain for

“The reported price paid by Melbourne’s third stevedore to secure port space should

Melbourne to maintain its claim of being Australia’s freight and logistics capital.

Diageo Australia unveils high-tech warehouse in Sydney DIAGEO Australia, maker of well-known liquor brands such as Johnnie Walker and Bundaberg Rum, has unveiled a 26,000 pallet capacity warehouse in Sydney’s western suburbs.

Diageo’s Global Head of Supply,

Pilots warned after attempt at landing on coal stockpiles REX airline pilots have been warned against using sight only to navigate to the Newcastle airport, following up a 2012 incident in which crew mistook the coal stockpiles on Koorangang Island for the airport runway.

An Australian Transport Safety Bureau report issued on Friday said low light conditions in the evening were the main contributing factor for the

David Cutter officially opened the Huntingwood-based warehouse following a 20-month project, which saw the company invest $21.5 million in the new facility.

With the new warehouse now

announced 2020 Sustainability

on its doorstep, Diageo Australia

and Responsibility targets reflect

side Diageo Australia’s primary

will reduce its carbon emissions

the need to better manage water

manufacturing site in Huntingwood.

by 110 metric tonnes of carbon

stewardship and carbon emissions

According to Diageo Australia

dioxide annually – the equivalent

across Diageo’s total supply chain.

The warehouse is located along-

pilots’ incorrect visual identification of the coal facility as the environment

Supply Director, Joe Russo the

of taking 35 standard passenger

of the airport at Williamstown, which led to them manoeuvring the Saab

investment in the warehouse will

vehicles off the road every year.

340B for an approach to that location.

deliver considerable cost savings

This carbon reduction will con-

that we will work even harder with

to Diageo and cements Diageo’s

tribute to Diageo’s 2020 target of

suppliers globally to decouple the

on 8 November 2012 were darker than usual due to cloud cover in the

commitment to manufacturing in

reducing absolute greenhouse gas

growth of our business from our

western sky.

Australia in the long term.

emissions from direct operations

impact on the environment,” Cutter

by 50 per cent, plus 30 per cent

said.

across its total supply chain.

The facility was built with a small footprint of 5,000m2.

The crew said although the flight was completed in daylight, conditions

Following the investigation REX (Regional Express) alerted its crews

Prior to building the new

to the possibility of misidentification of features in that area, and were re-

warehouse, Diageo stored most of

minded of the importance of using navigation equipment to verify position.

its inventory at a third party facility.

4 | Logistics&MaterialsHandling April 2015

Cutter said Diageo’s recently

“This forward thinking, holistic approach to sustainability means

logisticsmagazine.com.au

LM0415_005

- 5

2015-03-26T10:09:23+11:00

bulkhandling

Maintaining power processes New conveyor drives are making coal handling more efficient at Loy Yang.

P

ower stations are 24/7 operations. So ensuring they continue to run, no matter what, is a difficult enough proposition, but when these power stations are faced with the prospect of having to increase their output then making sure they are kept supplied creates a whole new raft of challenges.

As part of a push in the industry to become more sustainable whilst still delivering the same levels or higher of power, AGL’s Loy Yang power station underwent Bulk conveying systems at AGL’s Loy Yang mine and power station run over a conveyor system upgrade to 25 kilometres. extend the machinery and minimise production stoppages, breakdowns, The Loy Yang mine itself is a mainly automated processes to L Munscheduled 0 2 1 5 _ 0 downtimes.

1 5 _ BAC 1 massive 2 0 1 5operation - 0 1 - that 2 0 Tuses 0 9 : 3 3 : 2 transport 6 + 1 1 : coal 0 0 from the bottom of and

logisticsmagazine.com.au

the pit to the nearby power station.

It employs massive bucket wheel excavators that exhume up to 4000 tonnes of coal per hour, after which it deposits the material on to dredgers conveyors that feed on to main transfer conveyors that run on each level of the mine.

These main transfer conveyor systems comprise multiple separate conveyors, each with a belt-width of two metres and a travel speed of 5.2 meters per second (approximately 19 kilometres per hour), and have a combined length of 25 kilometres.

The conveyors then move the coal to a raw coal bunker, which has an 80,000 tonne capacity.

Additional conveyors then move

April 2015 Logistics&MaterialsHandling | 5

LM0415_006

- 6

2015-04-01T12:54:50+11:00

bulkhandling

the coal from this bunker to two separate power stations located at the top of the mine, AGL’s Loy Yang 2210MW and GDF Suez’s Loy Yang B 1000MW power stations.

However, as the coal bunker only has enough capacity to fuel 20 hours of power generation, it is crucial that the conveying system consistently performs.

Working with Rockwell Automation, Loy Yang installed an upgrade in its four-level open cut coal mine, which included the redesign and progressive changeover of the ex-isting coal transfer conveyor system.

Keeping current The original legacy transfer conveyor drive systems at the Loy Yang mine were based on water-cooled eddycurrent coupling (ECC) technology.

While the ECCs were an ideal drive solution when first installed, as they provided high torque over a wide speed range – which is ideal for moving large amounts of coal from the bottom of a pit to the surface, it had become clear that these drives systems were now struggling to move the coal as effectively as possible.

On top of this, the existing eddycurrent coupling drive systems were becoming more difficult to maintain while the control systems became unreliable.

“The ECCs are an older method of conveyor control and as the mine continued to grow we needed additional power so it was clear that we needed to move towards a more modern system,” AGL Loy Yang mine electrical superintendent, Robert Collins, said.

“The need to keep up with increased power demand provided AGL Loy Yang with the opportunity to implement a drive solution incorporating the latest technology that would work effectively in the mine’s rugged environment,” he said.

To overcome this issue affecting the large numbers of conveyors on site, AGL Loy Yang focused on implementing new drive architecture technology in a gradual manner to allow for integration with existing drive systems and control architecture without heavily impacting production.

Working with Rockwell Automation, AGL Loy Yang developed a new drive solution built around an Allen-Bradley PowerFlex 7000 medium voltage AC drive.

Known as ‘direct-to-drive’ technology, it helps to eliminate the need for isolation transformer applications.

The mine’s engineering team decided to equip each conveyor with a fully self-contained, cooled, and removable drive package that could

The conveyors run over 25 kilometres.

be easily installed or uninstalled on all the site’s conveyors.

The simplified nature of the drives eased the development of the portable drive packages.

“The transformerless configuration of the PowerFlex 7000 meant we were able to help minimise the footprint of the drive package,” Rockwell engineering team leader, John Dunn, said.

“The main electrical feature is the load sharing between different drives on each conveyor; we developed a portioned stainless steel IP65-rated enclosure, equipped with an air-conditioned cooling system, to house each of the 6.6kV PowerFlex drives,” he said.

“The ‘minimal component count’ was also a feature of the drive solution, with fewer parts eliminating the number of things that could go wrong.”

Integration on site

The new drives cut conveyor downtimes.

6 | Logistics&MaterialsHandling April 2015

Nine drive packages have been supplied to the coal mine to date.

Engineers overcame the integration issues caused by the existing drive technology and control architecture by interfacing the first drive packages with PLC5 systems packages in a neighbouring switchroom.

It then uses ControlLogix, which is linked to the mine’s supervisory control and data acquisition (SCADA) system, via the mine’s existing communications network.

Each drive package is then equipped with an Allen-Bradley electronic operator interface located on the front panel of the drive enclosure.

“The drives can be interrogated via these EOIs or through the mine’s SCADA system,” Dunn explained.

“The locally mounted EOIs make it easier for site personnel to access drive diagnostics without opening the dust-proof enclosures and exposing the drives to the elements.”

The two teams also worked together to devise a strategy to seamlessly synchronise the new drive packages with the existing ECC drives.

“Integrating the new drives at the mine has been a relatively straightforward project to complete,” he said.

“We have a lot of experience using the drives now, making it a fairly easy, run of the mill upgrade that doesn’t take too long.”

The end game Since the installation of the drives Loy Yang has seen a reduction in production stoppages, breakdowns, and unscheduled downtimes.

Engineers now have advanced diagnostics and troubleshooting capabilities, allowing for a reduction in maintenance, and eliminating isolation transformers whilst providing load sharing between conveyors, which can now regenerate energy if required. logisticsmagazine.com.au

MA0315_000_NAC

-

1

2015-02-27T09:05:02+11:00

LM0415_008

- 8

2015-03-26T10:05:51+11:00

bulkhandling

The importance of smart drive systems procurement

A

s Australian manufacturers continue to find their feet in the ‘Asian Century’, the importance of innovation and working smarter, not harder to remain competitive has been pronounced by industry leaders and government officials alike.

One key business area that is seeing a fundamental shift in outlook is within procurement and supply chain management.

The Productivity Commission has found that Australian manufacturers not only have high labour costs, but also “suffered from high logistics costs”.

With components sourced from overseas suppliers, manufacturers are often subjected to long supply chains.

This not only affects productivity, but long-term costs associated with poor procurement processes such as wastage and high levels of energy consumption.

Successful procurement involves a holistic approach, leaning on stable supplier relationships and local knowledge.

Perfect match: Finding the right partner in procurement The importance of finding the right supplier is now more important than ever to the success of a manufacturer.

Leading industry experts have noted that organisations are becoming more reliant on procurement to identify the most suitable strategic partners, that not only contribute to fostering innovation but also help to maintain a competitive advantage.

The Australian Procurement and Construction Council (APCC) observed that successful procurement processes include “the adoption of an integrated procurement approach which incorporates whole-of-life costing 8 | Logistics&MaterialsHandling April 2015

reduced waste disposal, and reduced risk management.

Building solid relationships with quality suppliers is fundamental for successful procurement.

Indeed, the relationship between supplier and consumer needs to become more streamlined in order to be more productive and mitigate possible complications within the supply chain.

One key business figure has explained: “it is beneficial to emphasise the importance of investing time and resource for faceto-face interaction with partners to establish trusted relationships”.

Finding the right supplier is now more important than ever to the success of a manufacturer.

models to increase overall effectiveness of the procurement activity”.

It is about keeping future running costs in mind and, importantly, the quality of the product and its longevity.

However, manufacturers often source materials from multiple suppliers, thus commencing the difficult and sometimes impossible juggling act of supply chain management.

And while ‘cheap’ parts from multiple suppliers might make immediate economic sense, it is within the lifespan of the parts that we see that the associated longterm costs often come to the fore.

This affects the areas of downtime, maintenance costs, and energy requirements all of which are significant and costly elements of running a business and are often overlooked.

And because procurement deals with demand, it is imperative that manufacturers scrutinise the supply and its ecological impact.

Successful procurement procedures also take into consideration sustainable procurement which reduces cost through increased efficiency,

Drive systems: Too many cooks in the kitchen?

Drive systems are the nerve centre of any manufacturing process and, thus, vital to get right from the beginning.

A typical drive system consists of a motor or gearmotor, a motor controller, a motion/process control PLC for human to machine interface and a visualisation for process adjustment.

Piecing together integral, and sometimes complicated, equipment needs an uncomplicated and reliable supply chain.

Choosing to procure all system components directly from the manufacturer, or a ‘mix-and-match’ approach from various distributors, can be a difficult decision for manufacturers seeking to optimise drive and control systems in the manufacturing process.

But of course, price points and availability of parts can dictate procurement processes, and often lead to multiple suppliers.

However, by selecting parts from different suppliers, engineers and the end user can sometimes miss out on vital savings.

While initial price points can be quite low, if the pieces simply do not fit, the consequences lead to a higher Total Cost of Ownership.

Drive systems are the nerve centre of any manufacturing process, which are vital to get right from the outset.

One potential pitfall is higher energy consumption resulting from the inadequate consideration being given to drive system efficiency at the time of project planning.

Given the potential complexity involved in purchasing drive systems, there are a few things to keep in mind: • Consider a “one-stop-shop” drive systems provider – This may help avoid getting lost in the myriad of components and suppliers.

Manufacturers can also limit costs and extra fees associated with a drive component puzzle that doesn’t quite fit.

• Form a trusted relationship with a “drive partner” – Working with people who know your business and provide solutions to meet your environmental and application parameters can ultimately lead to productivity and less down-time.

• Standardisation is the “key to price reduction” – Standardising on product offerings from one specialist supplier brings benefits to many aspects of a manufacturing business. From a procurement perspective, standardisation brings economies of scale, undoubtedly driving prices down during contract logisticsmagazine.com.au

LM0415_009

- 9

2015-03-26T10:07:46+11:00

bulkhandling

negotiations. From an operational point of view, supplier standardisation paves a path to a streamlined spares inventory as often one stocked component can be utilised as a replacement for components installed in a vast number of locations, of course this needs to be considered at product selection stage.

• Local availability – When negotiating contracts with overseas project companies consider the manufacturer of parts installed within the project, too often spare parts cannot be sourced due to lack of local representation or inadequate stock holdings, this leads to increased downtimes and or higher replacement costs because of excessive express freight charges.

• In-house expertise – Consider a supplier backed by their own L M 0 4 1 5 _and 0 0sales 0 _ team.

HAN 1 engineering,

contact to solve your drive system problems at time of need.

The solution for drive systems procurement challenges

SEW-EURODRIVE has its own National network of assembly plants and technical sales offices throughout Australia.

Engaging with a supplier who has the capabilities to engineer a complete drive system can often eliminate the middle-man.

• Stop the blame game – One drive supplier responsible for the integrity of drive package eliminates finger pointing during initial system installation or 2 0 1 5scenarios.

- 0 3 - 1One 7 Tpoint 1 1 :of3 5 service

CeMAT AUSTRALIA - Half-Page Ad - FINAL2-outlined.pdf

1

16/03/2015

SEW-EURODRIVE has its own National network of assembly plants and technical sales offices throughout Australia and can supply a “Complete Drive Package” to suit most drive applications for the manufacturing industry.

From assembly to maintenance, SEW-EURODRIVE provides end to-end solutions and is one of the very few local suppliers that can tailor make drive packages to customer requirements from its vast inventory of modular components and parts.

SEW-EURODRIVE also supplies high-quality after-sales service and training with DriveACADEMY, equipping engineers with the : 2 technical 5 + 1 1 :knowledge 0 0 to project 9:33 am

From assembly to maintenance, end to-end solutions are available with tailor-made modular drive packages.

manage, install, maintain and troubleshoot equipment.

The SEW-EURODRIVE DriveACADEMY trains engineers in all aspects of the project from start to finish. Procuring drive systems from SEW-EURODRIVE gives manufacturers the confidence that the people who make the drives, also assemble and service the drives. A comprehensive service and technical support centre is located in Melbourne.

C

M

Y

CM

MY

CY

CMY

K

logisticsmagazine.com.au

April 2015 Logistics&MaterialsHandling | 9

LM0415_010

- 10

2015-04-01T10:39:13+11:00

cranesandlifting

Australian compliant platforms Manitou has launched its now fully AS compliant vertical mast boom work platforms.

The 100VJR AUS vertical platform has been designed to replace the previous European version available on the Australian market.

“We had previously been selling the European 100VJR that was design registered to AS1418.10: 2006,” Manitou Australia managing director Stuart Walker said.

However “some tests to verify compliance to the new standard meant that we needed Kone Cranes eliminates underutilised area in warehouses

to re-engineering aspects of the design, [so] Manitou took the opportunity to modify the

Konecranes

M

oly-Cop Indonesia is the first company in Indonesia and one of the first in South East Asia to install the latest Konecranes SMARTON ‘crane with a brain’ with TRUCONNECT remote monitoring and reporting.

In addition to TRUCONNECT, the SMARTON crane at Moly-Cop Indonesia’s Cilegon plant has some of Konecranes most advanced technology, including smart features like sway control and target positioning to make lifting safer and more efficient.

Moly-Cop in Cilegon, Indonesia – which is a part of the ASX-listed Arrium Mining Consumables Division – produces forged steel balls to the highest quality levels for applications such as ball mills in copper and gold concentrating plants.

The Cilegon mill has a nominal capacity of 80,000 tonnes of grinding media per annum, which is used extensively throughout Asia, particularly in mining operations that extract copper, iron ore and gold.

The 15t SMARTON crane, with the addition of a magnetic lifter, is used for loading and unloading material.

It is complemented by a 10/2.5t

10 | Logistics&MaterialsHandling April 2015

design and increase its rating for indoor and outdoor use,” Walker said.

Has a rating of up to 200kg.

The new vertical platform is designed

double girder CXT crane which is used for lifting equipment and maintenance.

“When deciding on a new crane, the customer had to consider safety, price and maintenance. Konecranes was able to give them the highest level of safety and best maintenance at a very competitive price,” says Konecranes.

The first SMARTON in Indonesia delivers greater productivity, reliability and safety. “The customer decided to add the smart features, because they save time and money. The customer relies on their 15t crane for all their loading and unloading, so if they have lots of deliveries to make, they need to be as efficient as possible,” said Konecranes.

“Also, TRUCONNECT allows them to optimise their maintenance schedule so they’re never left with a crane out of action when it’s needed most.”

Moly-Cop Indonesia and Konecranes have been working together for just over one year at their new facility in Cilegon, where the highest priority is placed on safety.

with a vertical telescopic mast to work in

states, tested to comply with the current

restricted areas, are equipped with a jib to

Australian Standard AS1418.10: 2011.

give 3.15 metres outreach.

It also has an indoor and outdoor rating of 200 kilograms, or two persons.

The basket is also large enough to fit two people in comfort.

It features an electric drive for smoother

Walker added: ”We are expecting strong growth in the vertical boom market in the years to come as these products offer greater access and flexibility to users over scissors and some articulating booms.”

First delivery of the new booms are slated

movements, and simple operator controls

for March this year.

with proportional movements.

Manitou

Importantly the 100VJR AUS is, as Walker

www.au.manitou.com

Confined space lifting Phoenix Lifting has introduces a new solution for the safe handling of heavy loads in confined spaces. Its new development, the My-T-Lift is a 360° telescopic jib crane, is a machine that can safely handle heavy loads up to 300kg.

Designed for single handed operation, the new telescopic jib cranes can be mounted on trucks, trailers, pontoons and similar structures. The design of the My-T-Lift crane allows accurate placement of heavy loads, even in confined spaces. The telescopic jib crane can be folded down when not in use. My-T-Lift telescopic jib cranes are available in manual winch with 6m rope or 12- or 24-volt electric winch with 12m rope.

Also available are aluminium portable gantry cranes with a capacity of 500-5000 kg working load limit (WLL), which are designed to provide flexibility with lifting heights for different applications.

They are available in a range of adjustable spans and heights from 2.5-6m with lifting capabilities of 500 kg-5000 kg.

Phoenix Lifting

Konecranes

1300 875 611

1300937637

www.phoenixlifting.com.au

www.kone.com.au

logisticsmagazine.com.au

LM0415_011

- 11

2015-03-26T10:11:08+11:00 L M0 4 1 5 _ 0 0 0 _ N O R

materialshandling

-

1

2 0 1 5 - 0 2 - 0 2 T1 4 : 1 9 : 5 4 + 1 1 : 0 0

ANTRIEB

DER

■ Reliable ■ Versatile ■ Global

The

1st Choice Group chooses Toyota Huskis

A

family-run Gold Coast earthmoving company has expanded and upgraded its fleet, commissioning two new Toyota Huski skid-steer loaders.

1st Choice Group based at Upper Coomera also has a new tipper truck built by Hino, another member of the Toyota group of companies.

The company commissioned its new Toyota Huski 5SDK-8 skidsteer loaders late last year, one as a replacement for an earlier model Toyota 4SDK-8 and the other as an additional unit.

Company principal Travis Northcott has always used Toyota Huski skid-steer loaders since founding the company in 2006.

“Toyota is tops for reliability, operator-friendliness and serviceability,” Northcott said.

“I wouldn’t consider any other skid-steer loader.

“The serviceability is impressive; I know that from doing the service in-house. There is easy access to the key components and the fact that so little maintenance is required keeps the machines ‘in the dirt’ for longer.”

Northcott said his Huski skid-steer loaders perform a wide range of general contracting and civil works across south-east Queensland.

“Being in the earthmoving industry is not just a job for our family-run

business: it is what we do best and what we know best.

“In terms of civil works, last year we completed a 10-acre mushroom farm at Yalata, halfway to Brisbane.

More recently we completed a new service station/convenience store on the Gold Coast,” he said.

General contracting work includes working with plumbers, electricians and landscapers.

“We bought our 700 Series Hino FS2848 truck four months ago to haul our tag trailer, which weighs 20 tonnes when loaded. I am looking for longevity, so I chose a truck from a proven brand with power and a big gearbox,” he said.

Northcott said buying his Huski skid-steer loaders through Toyota Material Handling Australia’s Brisbane branch was also a breeze.

“I called area sales manager Syd Williams to place the order and within days he was here with the two new Huskis,” he said.

The Toyota Huski 5SDK-8 is one of six Huski skid-steer loader models offered nationally by Toyota Material Handling.

It has a spacious cabin opening for smooth entry and exit, along with an easy-to-read instrument panel and low vibration and low fatigue control levers, providing outstanding operator comfort.

Gear Unit

■ Strong bearings ■ Low noise ■ High power density The

Motor

■ High efficiency ■ Global Standards ■ All operating condition The

Drive Electronic

■ Compact design ■ Easy commissioning ■ Scalable functionality

Wide power range Versatile system solutions High overall efficiency

DerAntrieb.com NORD Drivesystems (AU) Pty Ltd 18 Stoney Way, Derrimut , Victoria 3030 Australia Phone: +61 3 9394 0500 Fax: +61 3 9394 1525 www.nord.com.au National Customer Service 1300 00 NORD (6673) au-sales@nord.com Member of the NORD DRIVESYSTEMS Group

logisticsmagazine.com.au AU_Logistics+Material_100x275.indd 1

DRIVESYSTEMS April 2015 Logistics&MaterialsHandling | 11

30.01.15 09:19

LM0415_012

- 12

2015-04-01T10:39:59+11:00

earthmovinglogistics

Pushing forward to the future Ben Hagemann looks at the newest generation of Dressta bulldozers, and chats with VP global sales Howard Dale and service director Jason Izzard about their plans to break new ground in the Australian market.

P

olish machinery manufacturer Dressta has been an established player in the small to mid-range bulldozer market for some years in Australia, but now their sights are being set on the Australian mining industry.

With Australian bulldozer market dominance firmly in the grip of Cat and Komatsu, breaking in with a European brand will be no easy task, but Dressta are looking to expand their services thanks to investment from a joint venture partnership with Chinese giant LiuGong Machinery, which now wholly owns the Polish company.

Despite the underrepresentation of the brand in Australian mining, Dressta claim unmatched performance in mining applications in many countries around the world, including coal mines in Poland, copper/gold projects in Uzbekistan, and nickel mines in the Philippines.

Global vice president of sales Howard Dale was pleased to showcase the LiuGong Dressta range at an open day in March at the company’s testing facility in Stawola Wola, Poland, near the Dressta manufacturing plant.

There the media were invited to get up close and personal with the machinery, and even to drive the new equipment for themselves to get a feel for the cabin comfort and ease of operation of their flagship dozers.

“Our products features high productivity, proven reliability, they’re easy to maintain on site, and we offer our customers a flexible manufacturing arrangement which allows us to tailor products to their specific needs,” Dale said.

“Our manufacturing, administration, and engineering processes are all accredited to ISO9001, and here in Poland we’ve won many local awards for our design, engineering and for the quality of products we produce here.”

Dale also said Dressta has recently won the Polish Overseas Foreign Investment Award for the contribution made to the Polish economy by LiuGong’s ownership of Dressta.

In the past 12 months Dressta have also set up partnerships with Australian dealers and service providers Onetrak (Perth, Melbourne) and Terrequipe (Rockhampton), which will allow

12 | Logistics&MaterialsHandling April 2015

Howard Dale shows off the Dressta range at their testing grounds in Stawola Wola, Poland.

greater sales and service to customers around Australia.

“We’re very excited to have Onetrak as a new dealer, who came on board in quarter three last year, and their first products have just arrived, and we’re working with the dealer to enable them in terms of their market readiness to serve new customers,” Dale said.

On the subject of marketing in Australia, Dale said the Dressta range had several features which would be attractive in the mining market.

“Our number one USP is our two-speed track system in the TD-40, for ease of maneuverability, but the second is that we have the best return on investment as it relates to owning and operating costs, and we move product for the lowest unit cost,” he said.

“Also our drivetrains are modular, which makes maintenance very easy on site.

“One of the key features we want to retain as we continue our development of these machines is their ease of maintenance.”

Turnaround for track overhaul of the large TD-40 in the field was quoted at less than one day.

The Dressta range includes 42 models across five product lines: Bulldozers, loaders, backhoes, pipe layers and conveyor belt shifters.

Dressta’s bulldozers have a unique two-speed steering drive which allows for continuous transfer of engine power to both tracks, giving better performance for pushing full loads through the turns.

They also lay claim to “best in class” drawbar pull, as well as unmatched ripping performance with superb penetration in hard materials.

For specialist coal handling work Dressta offer blades for high productivity and optimal load handling capacities, with custom blades of 21m3 up to 47.5m3 in the TD-25E and TD-40E, the two largest models in the Dressta fleet.

These machines also boast comfortable cabins with excellent noise and dust resistance to ensure greater ease for operators working long shifts.

For industrial steelmaking applications Dressta bulldozers also come with a hightemperature pack designed for hot slag handling, which can also be applied to emergency work with coal mine fires to ensure maximum reliability under the most severe heat conditions.

These machines are fitted with heat resistant fuel and oil lines which are also protected by fire suppression systems which can put out any smouldering, as well as extensive guarding and high grade steel used for the blade and rippers, logisticsmagazine.com.au

LM0415_013

- 13

2015-04-01T10:40:37+11:00

earthmovinglogistics

with capacity to work in contact temperatures up to 600 degrees Celsius.

Dressta machines also come fitted with Trimble navigation systems designed to increase productivity.

Director of after sales service and training Jason Izzard said it was Dressta’s goal to have all machines leaving the factory fitted with Trimble systems within two years, making the machines much easier to use, as well as enabling real time fleet monitoring.

“The machines have to be fitted with systems so that you or I could jump onto the machine and begin to use it like an experienced operator,” Izzard said.

“Trimble gives the operator a screen which allows him to see what he’s moving, what he should be moving, what he’s actually moved, and it records production.

“It can send these details back to an office in Sydney or Perth, and then you know how much material a D11 working in the Northern Territory has pushed in the last hour, last day, or week.”

Izzard said it was key to modern operations in mining and construction to utilize real time information with regard to machine performance.

“Basically it helps to forecast when the job is going to be finished, assist with scheduling, and you can work out where to put more machinery; it’s an excellent system, and we’ve recognised that need,” he said.

“We’ve chosen to partner with Trimble because they’re very active, they came to us, and you’ve just got to have it, especially if you’re putting machines into a hire fleet.”

Dale said there were two levels of Trimble readiness, the first being machines built with adjustments for harnesses in the system so that Trimble can be fitted as an after-market, plugand-play scenario, but the preferred level will be machines with factory-fitted Trimble systems, ready for online operation at sale.

“In terms of the mining markets the application of telematics comes into its own for measuring machine availability, understanding service schedules, and as it relates to operations it’s going to be about calculating cubic metres of material loaded into trucks, the amount of product being hauled, so this will improve the efficiency of minesites through the sharing of data.”

However Izzard also pointed out that Dressta is well experienced with custom tailoring machines to customer needs, and that if not needed the Trimble systems can be left out of the equation. logisticsmagazine.com.au

But the immediate focus for the future of Dressta lies in the small to medium class bulldozers, currently aimed at the North American and Canadian markets.

Awaiting launch in third quarter 2015, the newest Dressta machines are small-range models (including the TD-9R) featuring the Hydrostatic Drive, which offers a vastly increased level of manoeuverability.

The technology has also been developed for mid-range bulldozers such as the TD-14 and TD-20, which are suited to smaller mines, construction projects, and specific jobs on large mining operations such as clean-up around wash plants and moving dragline cables.

Izzard said the hydrostatic system started for Dressta during their joint venture with Komatsu between 1992 and 2005, and was extremely popular in the TD-8, TD-9 and TD-10 machines in North America, however further investment was required to take development to the next level, which was facilitated through the purchase of Dressta by LiuGong.

The key to the hydrostatic system is that it improves on standard bulldozer steering (where one track is braked to turn in that direction) by incorporating hydraulic pumps which feed directly to the power train for each track, as Izzard explains.

“Hydrostatic system involves having a hydraulic pump attached to the back of the engine, there’s no gearbox, it’s a variable displacement hydraulic pump, and on the tracks you have two motors,” he said.

“So there’s a lot of variation. The motor on the back of the engine, you can choose how much

oil it delivers to each side, and depending where you have the motor set on each track, the amount of oil you feed into it will give it speed, and you can vary the speed by the motor. So you can have an infinite variable on each track, rather than simply on and off. On the smaller machines used for landscaping and civils, operators want to be able to get the machine to push effectively at any variable.

“The hydrostatic system allows infinite control via the tracks jut by moving the lever fractionally.

“To go faster they alter the speed from the pump, and for more power the pump will feed the maximum amount of oil to the slowest motor speed which gives you the maximum amount of push.

“If you’ve got a light load, you use the fastest motor speed with the lightest pump action because it saves fuel.”

Therein lies the benefits of the system, giving the operator so much more control in terms of manoeuverability, with all settings computer controlled to respond from hand controls, translating to massive fuel savings, ease of operation, excellent performance, which in turn leads to increased productivity.

Dressta have also implemented a medium scale hydrostatic system for the TD-14, TD-15 and TD-20 called Diff-Steer, based on earlier developments by Cat in the 1980s.

“It’s going to allow the operator a similar sort of manoeverability as the TD-9R in larger machines,” Izzard said.

“That’s the future, that’s where we’re going to be. It’s what we’ll be talking about this time next year.”

LMH journalist Ben Hagemann tries out the flagship TD-40E crawler dozer.

April 2015 Logistics&MaterialsHandling | 13

LM0415_014

- 14

2015-03-18T15:26:15+11:00

warehousinganddesign

DHL launches new supply chain facility The outer western suburbs of Sydney have a new centre for freight logistics, Ben Hagemann writes.

D

HL Supply Chain recently launched a new 90,000 square metre supply chain campus in Sydney’s western suburbs, with NSW premier Mike Baird MP presiding over the opening.

The NSW Premier congratulated DHL Supply Chain on the creation of 500 new jobs at its new warehousing site at Horsley Park.

“DHL’s expansion plans over the next few years means that number will continue to grow,” Baird said.

“The NSW Government’s massive infrastructure program for Western Sydney is giving companies like DHL the confidence to invest in this vibrant region.”

The $120 million DHL Campus features some of the company’s most innovative technological developments, including measures to reduce costs and create new sustainability initiatives.

A multi-million dollar automation solution has provided retailers with improved speed

The new fitout uses state-of-the art technology.

14 | Logistics&MaterialsHandling April 2015

The new warehousing campus at Horsley Park runs to over 90,000 square metres.

to market whilst significantly reducing the warehousing labour requirements.

To support environmental objectives, DHL has invested in a polystyrene extruder, capable of reducing a semi-trailer load of foam packaging down to one pallet of solid material.

DHL senior solution design manager Mark Hopes said the extruder not only decreased landfill output but also recycling the waste into a “viable and valuable product” which is resalable as a building material.

The campus also has a biomass facility which reduces 60 per cent of landfill produced down to 5 per cent, and fuels water heating for washing pallets and crates.

The new DHL facility is also closely involved in supply chain logistics for Australian airline Qantas, ensuring full supply of abovewing products for all of their domestic and international flights.

DHL national quality manager for airline business solutions Michael Bowels said DHL Supply Chain was closely involved in the planning of supply for Qantas, forecasting the needs for individual flights based information gathered by the airline.

“We are privy to that information via monthly reports,” Bowels said.

“Qantas are our main airline customer, so we’re a lot more engaged in this than our traditional business units.

“There’s the added pressure that if we don’t

do our job properly, you don’t get a meal on your flight.”

DHL have plans to continue expanding the new

DHL have chosen Crown lifting solutions.

logisticsmagazine.com.au

LM0415_015

- 15

2015-03-18T15:27:03+11:00

warehousinganddesign

L M 0shelving 4 1 5 _built 0 0 to 0 _stack S C five F high.

1 Pallet

supply chain campus, from the four buildings now in place to a further two in the next year which will bring the facility to more than 100,000 square metres.

DHL Supply Chain Australia managing director Saul Resnick said DHL was experiencing continued demand for warehousing space in Sydney.

“Our customers are increasingly more willing to go into multi-user warehouses as they value the flexibility in overhead and labour costs to accommodate their changing business requirements,” he said.

“With expected new business and customer expansion, we are looking to build another three facilities in the coming years,” said.

“DHL is proud to support continued growth and employment in Western Sydney and more importantly, help Australia’s leading companies supply products to consumers, from toothpaste and snacks, to computers and life-saving medications.”

Resnick said DHL Supply Chain had 600 staff ten years ago, a labour force which has grown to more than 3000 staff across 50 locations nationwide, with a warehousing footprint 2 0 1 5 - 0currently 3 - 1 1 in T 1excess 4 : 2of6 570,000m : 3 3 + 12.1 : 0 0

NSW Premier Mike Baird opens the Campus.

SPECIALISTS IN CONTAINER: SALES I HIRE I DESIGN

Smarter container solutions to make freight transportation easy

With over 20 years’ experience in the Australian domestic container hire and sales industry, SCF units are designed to allow the efficient movement of palletised, bulk and temperature sensitive goods. For even the most difficult freight problems, we can provide smarter solutions.

Speak to one of our friendly and experienced SCF representatives on 1300 637 789 or visit scf.com.au J004579_Log&MatHandling_Mag_Ad_210x122_FA.indd 1

logisticsmagazine.com.au

27/02/2015 2:27 pm

April 2015 Logistics&MaterialsHandling | 15

LM0415_016

- 16

2015-03-18T15:31:01+11:00

fleetmanagement

It’s important to know you can trust your fleet manager to stay on top of every aspect of business.

Is the right person managing your fleet?

R

ight now, cost cutting is king in truck fleet management, but an independent tyre expert says this motive is encouraging the wrong type of person into such roles because it leads to unforeseen problems.

Brad Bearman of Bears Tyres can cite one example of such a person in a fleet management role at a large refrigerated transport company.

According to Bearman, he is making decisions on tyres beyond his capabilities and costing the transport company dearly.

“Many people that think they know about tyres but it’s a far more complex challenge, and only long term experience can teach you the intricacies, the hidden detail, and the consequences of taking the

16 | Logistics&MaterialsHandling April 2015

wrong action,” Bearman said.

“In this particular case, when trailer hub meters broke down he chose not to replace them. Then he went one step further and purchased new trailers without a hub meter, which is a foolish move.”

A hub meter is like a speedometer for trailers, helping in the maintenance of brakes, tyres, axels and general maintenance of trailers.

“Therefore, he is actually costing the company money in the long run just by making naive decisions mandatorily rather than discussing options with a trained, industry expert.”

Bearman owns the Bears Tyre Tracker which logs distances and advises rotations at optimised moments of each tyre’s lifespan for all types of transport.

Brad Bearman

It has been developed in-house by his brand-neutral company for national use and apart from enhancing tyre life it delivers cost breakdowns for each tyre at a cp/ km level.

“Companies are now employing those who talk a lot but lack true experience and technological knowhow to maintain the tyres as an asset,” Bearman said.

“Like the example above where trailers were unwisely purchased without hub meters, there is a relentless ‘chase for cheap’ rather than proper asset management.

“This is just one example of a huge list of glaringly obvious mistakes made by fleet managers – and sometimes even the executive managers – who wrongly believe they have adequate knowledge to oversee outcomes only an industry expert can achieve.

“Remember it’s not what you pay for the tyres, it’s what you get out of them.” logisticsmagazine.com.au

LM0415_017

- 17

2015-03-18T15:33:42+11:00

datamanagement

Checkpoint Systems joins GS1 Alliance Partner Program with RFID Tech

C

heckpoint Systems, a specialist in merchandise availability solutions for the retail industry, recently announced their entry into GS1 Australia’s Alliance Partner Program to provide GS1 members with RFID solutions to achieve profit growth in a challenging retail landscape.

Checkpoint Systems will be working with GS1 Australia to maintain global RFID and barcoding Checkpoint Systems is a provider of RF standards with focus on the Apparel, Consumer merchandise availability solutions in Australia.

Electronics, General Merchandise and Food & Grocery Industries in Australia. processes of Australian retailers.”

GS1 Australia CEO Maria Palazzolo said, Checkpoint provides the massive item-level “Checkpoint Systems’ announcement to sign encoding solution of RFID labels. up as a business alliance partner is excellent This high-speed bulk encoding solution, which news and a significant local commitment to GS1 combines hardware and software, ensures the standards in alignment with their RFID products highest level of accuracy and encoding speed and solutions.” without retailers needing to manually open “We look forward to working in partnership boxes and handle individual garments. with Checkpoint Systems to improve visibility Checkpoint Systems Asia Pacific vice president L Menhance 0 4 1 5efficiencies _ 0 0 0 _ TinRthe O supply 1 chain 2 0 1 5 - 0for 3 merchandise - 1 1 T 1 4 :availability 2 3 : 3 4 solutions + 1 1 : 0 Mark 0 and

Gentle said, “We are looking forward to a mutually rewarding partnership with GS1 Australia.”

“Checkpoint Systems has been working with GS1 globally for many years, and we are excited to extend this partnership to the APAC region to bring RFID solutions to GS1 members in the Australian marketplace.”

GS1 Australia’s Alliance Partner Program provides small and large businesses with a diverse range of benefits including supply chain enabling tools, priority notification of new technologies and innovation initiatives to improve supply chain efficiency, comprehensive best practice case studies and professional advice in making the GS1 implementation smoother and easier.

GS1 Australia is the Australian member of GS1, a not-for-profit, global organisation that develops and maintains the most widely-used supply chain standards in the world.

Hard work.

I just roll up my sleeves.

Whether you’re looking for a forklift driver or a logistics manager, Trojan has over 20 years experience finding the right people for the Transport, Warehousing and Logistics sectors.

Let’s get to work

trojanrecruit.com

ADELAIDE • BRISBANE • MELBOURNE • SYDNEY • NEWCASTLE • PERTH

logisticsmagazine.com.au

April 2015 Logistics&MaterialsHandling | 17

LM0415_018

- 18

2015-03-26T10:12:35+11:00

datamanagement

A new partnership in the Asia-Pacific region

P

rometheus Group and downtime, increase production, and SMEC are excited to improve returns on investments. announce their global For instance, 80 per cent of Oil partnership, which and Gas assets in the Asia Pacific combines Prometheus Group’s region are well past their optimum leading edge enterprise asset design life, necessitating major management software with SMEC’s asset management programs. best-in-class asset management As a result, the Australian Oil and consulting group.

Gas industry is investing amounts The partnership will focus on a that are greater than their profits; number of asset intensive industries, since 1987–88, it is estimated that including Oil and Gas, Mining, Food the Oil and Gas industry has spent and Beverage, Manufacturing, Pulp more than twice as much on capital and Paper, and Power and Utilities. investment, as compared to profits.

The partnership comes as a The situation is much the same much-needed boost for many in the pulp and paper industry, sectors across the Australian with the majority of machines that economy. Asset owners and produce Australian paper more than operators, across a myriad of 20 years old. (such as bioenergy and cogeneration) Australian sectors, are being Rather than upgrading assets, the over the last few years. forced to implement major asset paper industry has invested more As a result, operators are now management improvement than $1 billion in environmentally embarking on extensive asset L M 0 4 1to5minimise _ 0 0 0 _ KOB 1 friendly 2 0 1 manufacturing 5 - 0 3 - 1 6 Tprocesses 1 4 : 4 2 : 3 management 1 + 1 1 : 0 0 programs productivity programs.

Similarly, according to the 2012 Energy White Paper, Australia’s total energy and utilities asset investment requirements, through to 2030, are estimated at $530 billion.

Of this, $290 billion will be required for the development of energy resources, particularly assets required for electricity generation, FEATURES: • 1165mm x 1165mm x 975mm transmission, and distribution.

(Australian Pallet size) Much of Australia’s aging energy • All mesh panel sides fold down infrastructure requires robust asset to half for easy loading and management to improve operational unloading efficiency and extend the working • Fully collapsible for space saving in warehouse and life of older facilities. transport When it comes to increasing the • Fully removable front and back life of assets, planning shutdowns gates for easy loading and still and maintenance, real-time locked in place when folded collaboration is a must. down for safe transportation • 4-way forklift access and 4-way The Prometheus Group and SMEC pallet truck entry partnership will provide not only the • Pallet rack safe and stackable tools to improve asset performance • Powder-coated finish with but also the critical processes to plated mesh drive dramatic and sustainable • Steel floor improvement in asset care.

KOBOT SYSTEMS PTY LTD Prometheus Group general Contact: Gerald Koh manager of Sales for Europe, Middle See you at CeMAT Mobile: 04-1996-1978 East, Africa and Asia-Pacific, in Sydney Email: gkoh@kobot.com.au Bernhard Schwister notes the (Stand no. G29) Web: www.kobot.com.au possibilities that the partnership has to offer.

FOLDABLE & COLLAPSIBLE HEAVY DUTY METAL CONTAINER

18 | Logistics&MaterialsHandling April 2015

“Our software has gained unprecedented acceptance in the marketplace because of its ease of use, rapid implementation, and intuitive nature,” he said.

“By offering an integrated solution with SMEC, our customers gain a distinct competitive advantage through asset optimisation that is fully realised and effective.”

SMEC’s chief operating officer for Asset Management in the Australian/Asia region Thomas Hynes also believes this new partnership has much to offer Australian industry, noting, “When Prometheus Group software is combined with SMEC’s integrated asset management solutions, sustainable and ongoing long-term operational improvements can be achieved, positively impacting both productivity and earnings.”

“Our dedicated asset management function delivers solutions that balance risk, performance and cost.

“We experience a demand for solutions that can unlock and extend the value derived from the investment in SAP that has been made by many asset intensive enterprises.

“This partnership enables us to offer Prometheus Group’s SAP expertise to drive value for customers together.” logisticsmagazine.com.au

LM0415_019

- 19

2015-04-01T07:52:29+11:00

supplychaininsurance

Preparing for the worst

T

ransport and logistics industry insurer TT Club has raised an alert to the global supply chain industry that there is a persistence of claims in a handful of loss types.

66 per cent of its claims by number and 62 per cent by value over a five year period can be categorised into just five causes.

The analysis was conducted on 7,000 insurance claims each costing more than US$10,000 recorded between 2010 and 2014, totalling US$425 million, and revealed that the same five generic causes identified in its previous five year analysis continue to disrupt and cost dearly.

The company draws attention to the continuing concentration of these causes, rather than the ordering of each individual cause since these proportions can be volatile, especially in terms of headline claim value.

TT Club risk management director Peregrine Storrs-Fox said “risk management and loss prevention initiatives really can be effective in reducing not only losses, but also the largely hidden costs of disruption that ensues.”

“There are many prevention strategies and actions that can be put in place to reduce costs and occurrence of claims, and these should be of paramount importance for the transport industry”.

It is notable that traffic accidents and collisions are significant through the transport industry, firstly outside the port/terminal area, where the cost is US$68 million, but also similar incidents within the port/terminal operations, accounting for a further US$57 million in the statistics.

Thus, the entire industry – represented by freight forwarders, logistics operators, container shipping lines, and ports and terminals – are exposed.

The detailed causes may be logisticsmagazine.com.au

Top five most costly insurance claims made by freight forwarders, logistics operators, container shipping lines, and ports and terminals. Analysis conducted on 7,000 TT Club claims over USD10,000 in the last five years from 2010 and 2014. Total claims worth USD425m.

varied, but it is striking that these broad causes dominate.

The biggest issues for collisions within cargo handling operations continue to be quay crane boom to ship collisions and overall stack collisions.

In these instances, emerging technologies can almost eliminate the risks, particularly where combined with automation.

As Storrs-Fox explains, “Many traffic incidents and collisions are due to inappropriate speed, but detailed case review frequently demonstrates the impact that effective management culture can have on preventing losses.”

“For example, technology solutions, such as the use of GPS tracking or anti-collision sensors, can only be effective when regularly enforced and integrated into staff management”.

The remainder of the top five causes reflect the old chestnuts of theft, fire and cargo packing, which the TT Club has repeatedly highlighted.

Theft accounts for US$54 million,

where the most vulnerable part of the supply chain, unsurprisingly, is whilst cargo is in transit, although standard site security measures continue to prove critical to reduce theft.

A clear emerging risk is cybercrime as increasingly internet capabilities are used to identify, track and intercept cargo.

Fire is the fourth most costly area, currently accounting for US$44 million, although Storrs-Fox comments, “This is a most volatile cost area, as evidenced by the disparity in proportion between the number and value of claims.”

“By its nature fire can be devastating and threaten the very survival of a business.

“Its volatility in impact in the supply chain, however, relates to the fact that both on board ships and in warehouses there is concentration of value.

“In both these scenarios the impact of cargo mis-declaration is a real and continuing concern, although a significant number of fires can be traced to design or

maintenance issues.

“Building fires are mostly caused by electrical faults and mobile equipment fires by hydraulic faults.

Related to some fires, and currently subject of much international focus, was the issue of cargo packing, amounting to US$41 million in the analysis.

The TT Club asserted that 65 per cent of cargo damage incidents can be attributed in part to poor or incorrect packing.

“The importance of the industry developing good practice guidance, such as the CTU Code, cannot be under-estimated; the challenge for the supply chain industry is to raise its game in terms of its understanding of good practice and awareness of global requirements,” Storrs-Fox said.

“Conducting a thorough claim analysis is an essential part of the TT Club’s risk management strategy.”

“Advising the Members on incident prevention strategies and actions that can be put in place to reduce costs and occurrence is of paramount importance.”

April 2015 Logistics&MaterialsHandling | 19

LM0415_000_SEW

-

1

2015-03-11T14:27:46+11:00

Gearmotors \ Heavy Industrial Solutions \ Electronics \ Decentralised Systems \ Services

Less is more with MOVIGEAR® Are you under pressure to reduce costs in your facility? SEW-EURODRIVE can help!

The MOVIGEAR® Mechatronic Drive System substantially reduces your inventory with its ability to cover a broad range of gear ratios with a single unit. Independent research has also proven that the MOVIGEAR® reduces start-up and operating costs in materials handling by 20-30%. So, relax...We’ve got this!

SEW-EURODRIVE- Driving Australian Industry

www.sew-eurodrive.com.au 1300 SEW AUS (1300 739 287) to be directed to your nearest office Melbourne (Head Office) I Sydney I Brisbane I Townsville I Perth I Adelaide

sew LMH 4.15 fap movigear.indd 1

11/03/15 7:51 AM