DCN Magazine January 2022

First published in 1891 Celebrating 130 years January 2022

thedcn.com.au

The voice of Australian shipping & maritime logistics

The role of maritime in changing supply chains

34 Our current cybersecurity threats

42 Annual update on

agricultural trades

50 Australia’s plans for

offshore wind energy

Keeping our po safe, sustainab Keeping Keeping Keeping ourKeeping our ports ports ourour ports ports open to the w safe, safe, sustainable sustainable safe, safe, sustainable sustainable & & & & Keeping our ports open open to open to the open the world toworld the to the world world safe, sustainable & open to the world Sydney Harbour | Port Botany | Newcastle Harbour | Port

Sydney Harbour Sydney| Harbour Port Botany | Port | Newcastle Sydney Botany Harbour | Harbour Newcastle Sydney | Port | Harbour Harbour Port Botany Kembla || |Port Port Newcastle | Port Kembla Botany of Eden Harbour || Newcastle Port | Port of| Eden Port ofHarbour Yamba Kembla | Port |ofPort | Yamba Port Kembla of Eden| Port | Port ofof Eden Yamba | Port of Yamba

Sydney Harbour | Port Botany | Newcastle Harbour | Port Kembla | Port of Eden | Port of Yamba

So what does the Port Au

So what So what doesdoes the SoPort what the SoPort Authority does what Authority the does Port ofthe NSW Authority of Port NSW do?

Authority do? of NSW of do?

NSW do?

The Port Authority of NSW

• Manages all Vessel Traffic Control for inc • Provides expert Marine Pilots with local So what does the Port Authority do? vesselsof intoNSW and out of ports • Provides emergency response for on-wa The Port The Authority Port Authority of NSW Theof Port NSW The Authority Port Authority of NSW of NSW oil spills, environmental or vessel operat • Manages • Manages all VesselallTraffic Vessel • Manages Control Traffic •Control for Manages all incoming Vessel forTraffic all incoming and Vessel Control outgoing Traffic and for outgoing Control vessels incoming for vessels incoming and outgoing and vessels outgoing vessels • Performs surveyslarge on cruci • Provides • Provides expert Marine expert•Pilots Marine Provides with Pilots •expert local Provides with knowledge Marine local expert knowledge Pilots Marine to navigate withPilots to local navigate large with knowledge local large knowledge tohydrographic navigate tolarge navigate the safety of all travelling vessels vessels into vessels andinto out and of ports out vessels of ports into vessels and out intoofand ports out of ports The Authority NSW • Maintains, conserves operates • Provides • Provides emergency emergency response • Port Provides response for•on-water emergency Provides forof on-water emergencies emergency response emergencies for response such on-water as fire, such for emergencies on-water as fire, emergencies such asand fire, such as fire,coas • Manages all Vessel Traffic Control for incoming and outgoing vessels Nobby -Whiba ga ba Lighthouse and t oil spills,oil environmental spills, environmental oroil vessel spills, oroperational environmental vessel oil spills, operational environmental failures or vessel failures operational or vessel operational failures failures • Provides expert Marine Pilots with local knowledge to navigate large •maritime Performs long-term environmental • Performs • Performs hydrographic hydrographic surveys • Performs on surveys • crucial hydrographic Performs onmaritime crucial hydrographic surveys maritime routeson to surveys routes crucial ensure to on ensure crucial routes maritime to ensure routes to ensure mon vessels into and out of ports the safety theofsafety all travelling of all travelling the vessels safety vessels the of all safety travelling of all travelling vessels vessels •and Provides emergency response forsuch on-water emergencies such asas fire, • Maintains, • Maintains, conserves conserves • Maintains, operates and •operates Maintains, coastline conserves coastline landmarks conserves and operates landmarks and coastline operates as the such aslandmarks coastline the landmarks such the such as the oil spills, environmental or vessel operational failures Nobby -Whiba Nobby -Whiba ga ba Lighthouse ga Nobby ba Lighthouse -Whiba and Nobby thega -Whiba and Fort bathe Denison Lighthouse Fort ga ba Denison tide Lighthouse and gauge the tideFort gauge andDenison the Forttide Denison gaugetide gauge • Performs hydrographic surveys onenvironmental crucial maritime routes to ensure • Performs • Performs long-term long-term environmental • Performs environmental • long-term Performs monitoring monitoring long-term environmental monitoring monitoring the safety of all travelling vessels • Maintains, conserves and operates coastline landmarks such as the Nobby -Whiba ga ba Lighthouse and the Fort Denison tide gauge • Performs long-term environmental monitoring

www.portauthoritynsw.com.au Follow us @portauthoritynsw

www.portauthoritynsw.com.au www.portauthoritynsw.com.au www.portauthoritynsw.com.au www.portauthoritynsw.com.au

Follow Follow us @portauthoritynsw us @portauthoritynsw Follow us Follow @portauthoritynsw us @portauthoritynsw www.portauthoritynsw.com.au

XXXXXX

Contents

24

FEATURES

24 34 42 50

Logistics & supply chain

Logistics and supply chain operators talk challenges and innovations

34 42

Cybersecurity

The latest cybersecurity advice for our ports and food supply chains

Agricultural trades

DCN’s annual update on Australia’s thriving agricultural export trades

50

LNG & offshore

Development of LNG import facilities and new offshore wind projects

COLUMNS 16 Award nominations The nominees in the 2021 DCN Australian Shipping & Maritime Industry Awards

18 Industry opinion: MIAL Much-needed maritime reform may be in the offing

20 Industry opinion: FTA Streamlining the cargo intervention model

4

January 2022

22 Interview The Port of Melbourne’s new CEO, Saul Cannon

56 Trade law Andrew Hudson explains Australia’s sanction reforms

58 Industry opinion: SAL Shipping Australia comments on the supply-chain crisis and poor port performance

61 Industry analytics Ports Australia’s visualisation tool receives recognition

62 Out & about The industry emerges from lockdown just in time for Christmas

64 Mission to Seafarers Remembering a year of outreach

66 The grill Port industry veteran Ray Lee

thedcn.com.au

Major Host Sponsor of the 2021 DCN Shipping and Maritime Industry Awards

www.nswports.com.au

EDITORIAL

Read our update on ro-ro supply chains on page 24

ISSUE NUMBER 1258 Publisher Lloyd O’Harte lloyd.oharte@thedcn.com.au Editor Ian Ackerman ian.ackerman@thedcn.com.au Deputy Editor Paula Wallace paula.wallace@thedcn.com.au Journalist Abby Williams Creative Director Lee McLachlan Production Manager Grant Lopez grant.lopez@thedcn.com.au

A great and hearty welcome to 2022, a year we all hope will be less chaotic than last year. But remember when we said that at the end of 2020? We’ve got to be ready for anything.

In this edition, we have a focus on supply chains and how systems are bending (or not) in response to new stresses. And government is also entering the fray, with an inquiry into port productivity (see pages 8 and 58). Our feature on logistics and supply chain hits several key topics, including the ro-ro supply chain, retail fulfilment systems and the role of data in maritime logistics.

And also this month, we take a deep dive into the murky world of cybersecurity and the specific threats faced by the maritime and ports sector. We also have our annual update on Australia’s thriving agricultural trades.

In this January edition, we also feature many of the usual suspects, with columns from the FTA, MIAL, SAL, Jillian CarsonJackson and trade lawyer Andrew Hudson.

I hope everyone is looking forward as much as I am to next month’s DCN Australian Shipping & Maritime Logistics Awards. The event, to be held at the Sydney Four Seasons Hotel, is also to be a celebration of DCN’s 130 years of bringing you the news.

Look out for our February anniversary edition, which will be packed with historical information and contributions from some special guests.

Ian Ackerman

Editor, Daily Cargo News

INDUSTRY..

NEWS

To keep up to date with the latest shipping and maritime logistics news visit the Daily Cargo News website at:

thedcn.com.au

6

January 2022

Advertising Sales Director Lindsay Reed lindsay.reed@thedcn.com.au Tel: 0431 956 645 Subscription Manager James Hayman james.hayman@thedcn.com.au Tel: 02 9126 9713 Daily Cargo News acknowledges the Cammeraygal people, the traditional custodians of the land on which this publication is produced. We pay our respects to their elders past and present.

We extend that respect to all Aboriginal and Torres Strait Islander peoples today.

COVER IMAGE Mario Tama

Published by

PARAGON DCN PTY LIMITED ABN: 73 627 186 350

PO Box 81, St Leonards, NSW 1590 Tel: +61 2 9126 9709 CEO Ian Brooks ianb@paragonmedia.com.au www.thedcn.com.au The Daily Cargo News is available to interested parties throughout Australia and overseas via subscription.

For enquires please call 02 9126 9713.

The publisher welcomes editorial contributions from interested parties, however, the publisher and Paragon DCN accept no responsibility for the content of these contributions and the views contained therein are not necessarily those of the publisher or of Paragon DCN. The publisher and Paragon DCN do not accept responsibility for any claims made by advertisers.

Unless explicitly stated otherwise in writing, by providing editorial material to Paragon DCN, including text and images, you are providing permission for that material to be subsequently used by Paragon DCN, whole or in part, edited or unchanged, alone or in combination with other material in any publication or format in print or online or howsoever distributed, whether produced by Paragon DCN and its agents and associates or another party to whom Paragon DCN has provided permission.

thedcn.com.au

Wallenius Wilhelmsen

From the editor

Electronic Services Linda Saleh

Making marine operations safer and more efficient, every time, everywhere

News in brief Full details at thedcn.com.au

Port Botany

PORTS VICTORIA CEO ANNOUNCED

Prime Minister Scott Morrison announced a Productivity Commission inquiry into the efficiency of the Australian maritime logistics system.

During his speech, Mr Morrison pointed to the ACCC’s Container Stevedoring Monitoring Report 2020-21 and said the government is examining broader issues with the “relative productivity of Australian ports”.

“Ports are the gateway for our economy. Inefficient ports are a tax on all of us,” he said.

The Prime Minister said the government was helping to improve port productivity through infrastructure projects and taking on regulatory inefficiencies at the border through the Simplified Trade System.

“It’s clear, however, that productivity challenges remain in Australia’s maritime logistics system. These relate to competition, industrial relations, infrastructure constraints and technology uptake,” he said.

The Prime Minister said his government is keeping a close watch on the potential

8

January 2022

for industrial action to disrupt economic activity. He noted that industrial action at Patrick was on hold until 10 December.

“We encourage the parties to this dispute to negotiate in good faith and to resolve their issues to get this sorted,” he said.

“But at the same time, I want to assure you that our government will take action, if needed, to protect the Australian economy from serious harm.”

A statement from the Maritime Union said the Prime Minister’s statement was a “calculated, political attack” that was “timed to cause maximum anxiety and fear within the community”.

“The Maritime Union will continue to negotiate in good faith with employers on the waterfront and advocate for good pay, job security and safety in the workplace for our members, but what we don’t need is Scott Morrison sticking his head in and trying to create conflict on the waterfront in the lead up to Christmas as a distraction from his failure and lies,” the MUA said.

Yuliyaphoto; NQBP

“Inefficient ports are a tax on all of us”: Prime Minister announces inquiry into maritime logistics efficiency

The Victorian government has appointed Brendan Webb as the first CEO of the new state commercial ports body, Ports Victoria.

Mr Webb brings more than two decades of experience in operational leadership roles across transport, logistics, engineering, and mining.

His new role will involve overseeing Ports Victoria and will be critical in bringing together the former Victorian Ports Corporation and Victorian Regional Channels Authority into one organisation.

Victorian minister for ports and freight Melissa Horne said establishing Ports Victoria has already been key to improving the operation of the state’s ports.

“We look forward to Brendan Webb bringing his wealth of knowledge and experience to the role,” she said.

“Mr Webb brings invaluable insight and experience in commercial ports and will play a key role in shaping Ports Victoria – we look forward to seeing the benefits of the work he does for freight in our state.”

Brendan Webb

thedcn.com.au

A proposed intermodal terminal in western Melbourne will connect to Inland Rail

New intermodal container terminal to rise in Melbourne’s west interstate rail line and close to the Princes Freeway, delivering efficient freight transport connectivity to nearby logistics companies, distribution centres, warehouses, shippers, and manufacturers,” he said.

“Close to Melbourne’s freight centre of gravity, Pacific National’s plans for Little River will help to shift more freight from road to rail until delivery of the Western Interstate Freight Terminal.”

Pacific National’s Little River site is located near Melbourne’s major freight catchment zone to the west of the CBD. Here, the company says, more than 70% of containerised rail volumes are concentrated. It is 39 kilometres by rail to the Port of Melbourne.

Pacific National

Rail freight company Pacific National in December unveiled plans to develop a new intermodal rail terminal at Little River, Victoria. The terminal is to connect to Inland Rail.

The company aims to have the 80-hectare intermodal terminal – featuring warehousing, cold storage and refuelling facilities – operational by 2026.

Pacific National CEO Paul Scurrah said the company had secured an option over a large 540-hectare site to build the terminal and develop a surrounding logistics precinct on the existing interstate rail corridor west of Melbourne’s CBD and port.

“Pacific National’s new Little River site is in a prime position on the main

Mr Scurrah said a Little River terminal would better service the major east-west market, where about three million tonnes of containerised freight is hauled annually by rail from Melbourne, to Adelaide, and then across the Nullarbor to Perth.

“Pacific National is investing heavily in an extensive national terminal strategy in response to surging customer demand for containerised interstate rail freight services,” he said.

“The coronavirus pandemic accelerated the trend towards online shopping and created disruptions and delays in road and shipping operations, creating greater demand for rail freight services.”

Mr Scurrah said Pacific National is securing key sites along the Inland Rail alignment to unlock benefits of the project and haul greater containerised volumes by rail not only between Melbourne and Brisbane but also from Australia’s east coast to Western Australia.

In recent years, Pacific National has invested $35 million to deliver regional Australia’s largest intermodal terminal at Parkes in the Central West of New South Wales and secured Acacia Ridge Terminal in South East Queensland via a $205 million acquisition – both are located on the alignment of the future MelbourneBrisbane Inland Rail.

Mr Scurrah said several governmentsponsored studies confirmed the best location for a major Victorian interstate rail terminal was west of Melbourne’s port, in Truganina, rather than to the north.

thedcn.com.au

January 2022

9

NEWS IN BRIEF

An artist’s impression of what the new QuayLink terminal might look like from above

A glimpse of Devonport’s future

TasPorts has revealed details of its Project QuayLink, which is to secure the port as the Apple Isle’s gateway for tourism and trade.

TasPorts CEO Anthony Donald said after almost five years of planning, the project is underway.

“Aptly named Project QuayLink, the name recognises the important history of East Devonport, previously known as Torquay and the critical future that the port will provide as a key link between Tasmania and the mainland,” he said.

“As part of Project QuayLink, two state-of-the-art roll-on-rolloff berths and terminals will be developed, as well as a multiuser berth to support future growth opportunities at the Port of Devonport.”

Mr Donald also said QuayLink would improve the local amenity through improvements in traffic management, landscaping and streetscaping to create a place port users want to visit.

“To support community connection with the new port precinct, TasPorts is exploring opportunities to develop a commercial precinct as part of the proposed project works,” Mr Donald said.

FEDERAL COURT ORDERS MUA TO PAY $2.2 MILLION IN DAMAGES TO PATRICK AND QUBE

10

January 2022

Maritime safety review announced The government has announced an independent review of the legal framework regulating the safety of domestic commercial vessels in Australia.

According to an announcement from minister for infrastructure and transport Deputy Prime Minister Barnaby Joyce, the inquiry is in response to several recent inquiries by Senate committees and the Productivity Commission into various aspects of maritime safety regulation.

The review is to consider whether the National System for Domestic Commercial Vessel Safety is fit for purpose, focusing on the capacity of the legislation to support safe vessel operations, minimise regulatory and administrative burden for industry, and transparency. It will also assess the costs and charges associated with the legislation.

Additionally, the government has tasked the independent review panel with specifically considering whether the legislation interacts effectively with other Commonwealth and state and territory legislative frameworks, as well as with international maritime safety obligations.

It will also consider whether expanding the Australian Transport Safety Bureau’s role to include domestic commercial vessel safety could support substantially improved safety outcomes for industry, as well as regulators and policy makers.

Former Australian Taxation Commissioner Michael Carmody will head up the inquiry. He will be supported

by Carolyn Walsh, chair of the NTC, and John Harrison, who has commercial fishing industry expertise.

thedcn.com.au

Iam_Anuphone

The Federal Court has ordered the Maritime Union of Australia to pay damages of $2.2 million to Patrick and Qube for costs incurred during strikes, blockades and work bans at Port Botany in 2017.

The dispute occurred when Patrick sub-leased an empty container park at Port Botany to Qube, which was not covered by the Patrick enterprise bargaining agreement. In response, the union conducted a 24-hour strike and a week of work bans.

In addition to the damages, the court ordered the union to pay a fine of $30,000. In his decision, Justice Michael Lee said there needed to be a “penal response”, but he set the fine well below the maximum in light of the significant compensation ordered to be paid.

The union was ordered to pay Patrick $364,725 as compensation for needing to hire additional trucks to clear containers after all rail windows were cancelled during the bans and work stoppages.

And the union was ordered to pay Qube $1.85 million. Much of this is to compensate the company for needing to hire trucks and drivers to move containers, as well as to clear container backlogs that piled up during the industrial action.

24/7 Helpline - 1800 554 654 enquiry@hunterlink.org.au Over 10 years experience supporting workers and businesses in the shipping and maritime services industry

How can Hunterlink help your business and its people?

Hunterlink is a specialist welfare and support service for seafarers, offshore workers and maritime services employees. We are the leading Employee Assistance Provider for these unique workplaces both within Australia and around the world.

We know that long periods at sea or shift work can take their toll on the mental health and wellbeing of seafarers, and their loved ones.

Hunterlink provides 24/7 support services to seafarers maritime workers (and their immediate family) by telephone and online via video conferencing and text message apps.

www.hunterlink.org.au

As an EAP, Hunterlink assists crew and their managers by delivering a holistic mental health and wellbeing program that includes 24/7 telephone counselling, management and outplacement services, mental health training and organisational consultancy services.

Hunterlink works with companies to tailor our services and provide training and support programs that will boost morale, improve productivity and enhance the performance of your crew.

Through our Lunch and Learn programs, Toolbox Talks, onsite and With our background in maritime webinar training modules, your crew services and shipping, we know and will be supported to develop positive understand that a commercial vessel mental health, strike a healthy work/ or a busy port is a unique workplace, life balance and manage the pressures and Hunterlink provides fast and of FIFO, remote or shift work lifestyle. attentive critical incident support for Contact Hunterlink today to find out maritime workers and seafarers. how we can support your business or workplace.

enquiry@hunterlink.org.au

hunterlinkEAP

FREE 24/7 NATIONAL ASSISTANCE HELPLINE: 1800 554 654

NEWS IN BRIEF

Know the traditional owners of Australian ports

Qube finalises $1.67 billion Moorebank sale Logistics company Qube has finalised its $1.67-billion deal with the Logos Property Group Consortium for the sale of its interest in the warehousing and property components of the Moorebank Logistics Park.

As part of the transaction, Moorebank Intermodal Company and Qube have resolved all outstanding claims and disputes.

In July, Qube announced it had entered into a binding transaction with the Logos Consortium, pending conditions and approvals, which have been obtained.

In a statement to the ASX, Qube said it would be focused on its core logistics business and will have the long-term benefits of retaining its interest in the terminals and logistics activities at MLP. Qube is retaining full ownership of the IMEX Rail Terminal and majority ownership of the future interstate rail terminal, which is to have an initial capacity of 250,000 TEU. A component of the transaction is the establishment of a joint development model for the delivery and operation of the Moorebank Interstate Rail Terminal. Qube, MIC and Logos will have equity interests in the rail terminal’s ownership and a new joint development entity will be responsible for the terminal’s operations.

A statement from MIC said the efficiencies generated from the scale of the precinct, coupled with its direct link to Port Botany and capital cities will increase the capacity of freight networks across Sydney and along the east coast.

Ports Australia has launched an online resource that locates ports on an Indigenous map of Australia. It is to help ports acknowledge the traditional custodians of the land on which they operate.

The map will be accompanied by information on Ports Australia’s sustainability hub showing how ports are taking reconciliation action or engaging with Aboriginal and Torres Strait Islander communities.

Ports Australia said the country’s ports are located in areas rich with the history and culture lived by the traditional custodians of the land.

“It’s important we identify the partnerships between ports and First Nation’s peoples and consider how we can empower one another to do more as an industry,” the ports body said.

“Ports taking on reconciliation action and engaging with traditional owners is a critical part of business on an acute port and local community level, but also on a far greater scale, contributing to the growth of unity between Aboriginal and Torres Strait Islander peoples and nonIndigenous peoples across Australia.”

Ports Australia acknowledged the work of Scarlett Cheesman, who interned with Ports Australia in 2021, bringing with her a wealth of knowledge from her studies helping to drive the development of this project.

Ports Australia CEO Mike Gallacher spoke about the origins and meaning behind the map.

“A major focus of Ports Australia for a number of years now has been understanding and sharing the sustainable practice and planning mechanisms of our ports … this project merely directs that focus closer towards reconciliation action and acknowledgment of traditional owners,” he said.

Containership COSCO Nagoya on 23 November experienced an incident that resulted in containers overboard and collapsed containers on deck, according to reports.

The 4506-TEU, Panama-flagged vessel had departed Busan, bound for Long Beach, when the incident occurred off the Russian Kuril Islands, north of Japan.

12

January 2022

According to marine claims consultancy WK Webster, the vessel turned around and headed to Gwangyang Port in South Korea as a port of refuge.

At time of writing, the vessel was undergoing a survey. Reports indicated that 59 containers were impacted – 27 collapsed and 32 overboard.

The incident came almost exactly a year after the 14,000-TEU ONE Apus lost nearly 1800 containers overboard in the North Atlantic. That incident occurred in rough weather north-west of Hawaii.

Here in Australia, we have not seen a significant container-loss incident since APL England lost 50 containers overboard in 2020.

thedcn.com.au

Qube; ArliftAtoz2205

BOXSHIP LOSES CARGO IN NORTH ATLANTIC

Australia’s largest container and general cargo port

NEWS IN BRIEF

A detector dog on the hunt for stink bugs

Melbourne harbour master leaving Ports Vic, heading north

Dog finds stink bug The brown marmorated stink bug, a potentially hazardous hitchhiker pest, was recently discovered by biosecurity detector dogs conducting routine surveillance on an imported truck at the Port of Brisbane.

The dogs detected the single live bug in the wheel arch of a used dump truck, which was discharged on to the Brisbane wharf from an overseas cargo vessel. Remote diagnostics were used to immediately confirm it was an exotic brown marmorated stink bug.

Minister for agriculture David Littleproud said this detection was evidence of the benefit of the government’s increased resourcing for frontline defence “Brown marmorated stink bugs are voracious feeders, prolific breeders, and not easily controlled with pesticides,” Mr Littleproud said.

“If they got a foothold here, heavy losses to our pome, stone fruit and vegetable industries could occur given that losses of up to 90% for pome and stone fruit industries as well as heavy losses to vegetable crops have been reported internationally,” he said.

“I understand detector dog Velvet made the initial alert. Her find was then confirmed by two other dogs. Biosecurity officers took immediate steps to contain the situation.

“That included subjecting further ship cargo to thorough detector dog screening and deploying traps on site in accordance with the government’s brown marmorated stink bug response strategy.

“I am very proud of the work these dogs and officers are doing to keep Australia safe,” Mr Littleproud said

Ports Victoria has announced that Captain Kell Dillon, executive general manager marine and navigation/ harbour master, will leave the organisation in February 2022 to take up the role of general manager at Maritime Safety Queensland.

Ports Victoria chief operating officer Peter Mannion said the announcement was made with “mixed emotions”.

“We are deeply grateful for Kell’s dedication and hard work during his time with us and we are sorry to see him go. We wish him and his family everything of the best in his exciting new role with Maritime Safety Queensland,” Mr Mannion said.

“While Kell leaves us to take up an opportunity to further his career, in keeping with his character, he has committed to help us prepare for his departure. This will ensure the Marine and Navigation team is well positioned to continue providing the high standard of safe and efficient port operations our port of Melbourne stakeholders currently receive.”

Mr Dillon was appointed to the role at the Victorian Ports Corporation (Melbourne), which subsequently was incorporated into Ports Victoria, in January 2020.

A statement from Ports Victoria said Mr Dillon has provided strong, effective leadership and subjectmatter expertise during the very challenging past two years for the port and its stakeholders.

INDUSTRY EVENTS 2022

EVENT International Conference on Advances in Marine Engineering & Technology

Australian Museum, Sydney

DCN Australian Shipping & Maritime Industry Awards

Four Seasons Hotel, Sydney

22-23 Feb

Australian Peak Shippers Association Conference

Wagga Wagga RSL

18 Mar

ASCL Awards and Gala Dinner

Crown Palladium, Melbourne

29 Mar

AMPI 2022 Australia’s Maritime Future Conference

Novotel, Wollongong North Beach

6-Apr

Road Freight NSW Awards and Conference day

Waterview, Bicentennial Park, Sydney

20 May

IFCBAA National Conference

Surfers Paradise JW Marriot Resort & Spa, Gold Coast

7-9 Sep

Australian Cruise Association Annual Conference

Ville Resort-Casino, Townsville DAWE

28-29 Jan 17 Feb

To notify DCN of events please email us at editorial@paragonmedia.com.au

14

January 2022

thedcn.com.au

AUSTRALIAN SHIPPING & MARITIME INDUSTRY AWARDS

And the finalists are…

The most talked about event on the shipping calendar is on Thursday 17 February 2022 and you are invited!

DCN AND OUR MAJOR HOST SPONSOR, NSW PORTS, INVITE ALL OUR friends and colleagues to join us for the announcement of the winners and recipients of the DCN 2021 Australian Shipping & Maritime Industry Awards.

This special event gala dinner will take place on Thursday 17 February 2022 at the Four Seasons Hotel in Sydney. For more information go to www.dcnawards.com.au .

The finalists in each award category are as follows: LINER TRADE AWARD: AUSTRALIA-NORTH AMERICA Sponsored by Daily Cargo News ANL, CMA CGM, Hamburg Süd, HapagLloyd, Maersk LINER TRADE AWARD: AUSTRALIA-NORTH EAST ASIA Sponsored by Port of Brisbane ANL, COSCO, Evergreen, Maersk, OOCL LINER TRADE AWARD: AUSTRALIA-NZ/PACIFIC ISLANDS/PNG Sponsored by Liebherr-Australia ANL, MSC, Sofrana-ANL, Swire Shipping, ZIM MAJOR HOST SPONSOR

16

January 2022

LINER TRADE AWARD: AUSTRALIA-SOUTH EAST ASIA Sponsored by Daily Cargo News ANL, COSCO, Hapag-Lloyd, ONE, OOCL BULK & SPECIALISED SHIPPING AWARD Sponsored by GeelongPort AAL Shipping, BBC Chartering, Global Energy Ventures CUSTOMS BROKER OF THE YEAR Sponsored by IFCBAA 3DL, I. H. Hunter, Maersk, Trevor Taylor (Swift Customs)

DIVERSITY & INCLUSION AWARD Sponsored by Port Authority of NSW Auriga Group, Cusack & Co, Pilbara Ports Authority (Working with Respect), Pilbara Ports Authority (Youth Training Strategy), Port Waratah Coal Services, Townsville Marine Logistics, WISTA Australia ENVIRONMENTAL AWARD Sponsored by Major Host Sponsor NSW Ports ANL, GeelongPort, Maersk, Mid West Ports Authority, Svitzer Australia, Zilch Forwarding

SPONSORS

thedcn.com.au

FREIGHT FORWARDER OF THE YEAR Sponsored by Daily Cargo News Commercial Freight and Logistics, Dyson Logistics, EES Shipping, Globelink, Henning Harders, IFC Global Logistics, Verus Global, Whale Logistics MARITIME SERVICES AWARD Sponsored by Port of Melbourne ABF & AFP (Operation Ironside), AMC Search, Australasian Marine Pilots Institute, AMS Group, BHP Towage Services, Captain Jennifer Tumbers, Frans Schlack (Pilbara Ports Authority), Svitzer Seara crew (Mike Waters & Thomas Bell)

SEAFARERS WELFARE AWARD Sponsored by AMSA & Department of Infrastructure, Transport, Regional Development & Communications ANL, Daphne Colefax, Flying Angel Club, Fremantle, Hunterlink, Jenelle Connors (Hunterlink), Jessica Mulhall (Gladstone Seafarers Centre), Mission to Seafarers Melbourne, Mission to Seafarers Sydney, Peter Ernst (Port Authority of NSW), Port of Townsville, Reverend Un Tay (MTS Sydney), Wayne Ashton (NSW Ports)

PORT OR TERMINAL OF THE YEAR Sponsored by Svitzer Australia BHP Port Shipping Team (WAIO), DP World Sydney Terminal, Port of Brisbane, Port of Eden (Port Authority of NSW), Port of Townsville

SUPPLY CHAIN INNOVATION & TECHNOLOGY AWARD Sponsored by MIRRAT CEVA, Cusack & Co, Fickle Technologies, IFC Global Logistics, ImpexDocs, Leopard Systems, LINX Port Services, Maersk, Maersk SPOT, Oliver Karovski (Qube), Port Authority of NSW, Ross Gearing (Maersk), Swire Shipping

SAFETY AWARD Sponsored by Daily Cargo News BHP Mitsubishi Alliance, BHP Port Shipping Team (WAIO), Maritime Safety Queensland, Patrick Terminals and Cindicium, Svitzer Australia, Victoria International Container Terminal

WOMEN IN SHIPPING & MARITIME LOGISTICS Sponsored by LINX Cargo Care Group Alison Cusack (Cusack & Co), Cheree Figg (NQBP), Claudene Sharp-Patel (Shell Australia), Connie Colangeli (Diamond Freight), Desiree Alizart (Concordia),

Hollie Scoon (Rio Tinto Marine), Jacqui McCombie (Globelink), Janice Lai (CMA CGM), Jeanine Drummond (AMSA), Karen Byrde (PPA), Kerryn Woonings (WISTA Australia), Kristen Richardson (ANL), Liné Corfixen (Gladstone Ports), Monika Lemajic (WISTA Australia), Rachael Budd (Transolve Global), Sarah Harris (Port of Brisbane), Captain Sarah Robinson (Southern Ports) YOUNG ACHIEVEMENT AWARD Sponsored by The Merchant Navy War Memorial Fund Alison Cusack (Cusack & Co), Ashleigh Johnson (ANL), Blake Kelly (Mainfreight Group), Chanel Gibson (Maersk), Diana Geaboc (Port of Brisbane), Captain Ian Anderson, Justin Somerset (BHP Mitsubishi Alliance) CUSTOMER SERVICE AWARD Sponsored by DP World Australia Winner and Highly Commended recipients to be announced on the night NEWSMAKER OF THE YEAR Sponsored by Daily Cargo News To be announced on the night AUSTRALIAN MARITIME HALL OF FAME INDUCTEE Sponsored by Daily Cargo News To be announced on the night

Daily Cargo News would like to thank all those who took the time and effort to nominate as well as those who took part in our Customer Service Award survey.

We would like to wish all finalists the best of luck.

The Merchant Navy War Memorial Fund Ltd ( MNWMF )

thedcn.com.au

www.mnwmf.com

January 2022

17

INDUSTRY OPINION

Needed maritime reform may be in the offing The Independent Review of the National Law is a welcome opportunity for much-needed further reform, MIAL deputy CEO Angela Gillham writes

AN ISSUE OF HARMONY There was a problem that needed to be addressed: for some businesses, particularly those with interstate operations, the lack of national harmonisation of maritime regulations on vessel safety and qualifications created cumbersome and costly compliance arrangements. Think rail gauges of the sea – it just makes sense to have a single set of rules no matter where you operate.

In 2011, Julia Gillard, the then Prime Minister, and the eight state and territory leaders signed an inter-governmental agreement (IGA) which would see AMSA become the national maritime regulator.

It was hoped that the single national jurisdiction would improve safety, reduce costs and the regulatory burden on maritime business owners and operators.

Through the IGA, it was agreed that AMSA’s functions under the Navigation Act 2012, which covered regulated Australian vessels) would not be extended to domestic commercial vessels and that new legislation would need to be enacted and separately applied by the regulator, AMSA. A COMPLEX WEB OF REGULATION The key piece of legislation that was born as a result is the Marine Safety (Domestic

18

January 2022

Commercial Vessels) National Law Act 2012. Keeping in mind the enormity of the task at hand – that is to bring seven separate and – in some instances – vastly different registration, certification, survey and operational requirements under one umbrella. What resulted was a complex web of legislation, regulation, marine orders and references to a variety of current and superseded standards, transitional arrangements and exemptions.

In short, the regulatory regime we have now is very difficult to understand and subject to interpretation.

Following several inquiries – along with the well-known positions of industry groups such as MIAL who have urged a comprehensive re-think of the regulatory settings – the long-awaited Independent Review of the National Law was announced in December 2021 by the Deputy Prime Minister and transport minister Barnaby Joyce.

The scope and terms of reference of the review are exceptionally broad, the stated time frame is tight (some might say ambitious) and there are several ongoing challenges that the reviewers will face, including how to deal with the current grandfathering arrangements, that don’t necessarily have a clear path to resolution.

NOT THE RIGHT OUTCOME At the advent of the National Law, it was determined that existing vessels, their operations and crewing arrangements, would be permitted to continue as they always had, with effective safety management systems addressing inherent risk. When a vessel was to be replaced or substantially altered, or the vessels’ operations substantially changed, they would need to comply with the law.

Unfortunately, in some circumstances, grandfathering arrangements have created a strong disincentive to upgrade or replace vessels – a perverse situation

for a regulatory regime, where the central purpose is enhancing safety.

And then there’s the big question of industry cost recovery. Under state/ territory arrangements, some operators would have never had to pay for regulatory services and, it’s fair to say, they will not be willing, and in some circumstances able, to pay the true cost of delivery of the framework. Given the diversity and importance of the domestic commercial vessel sector to the national economy, and the need to eliminate cross subsidisation between sectors, some ongoing government appropriation will certainly be necessary.

MIAL wants to see: a genuine risk-based approach adopted across the DCV sector in order that operator’s unique circumstances are appropriately and proportionately managed; a range of qualifications and training standards appropriate and flexible enough to meet the needs of the diverse range of operators – not artificially pegged to higher levels than are needed; all cross subsidisation across the maritime sector in the functions AMSA performs to cease; and a remit given to the ATSB to investigate incidents in the domestic commercial vessel sector on a no-blame basis.

MIAL looks forward to working with the reviewers to achieve an optimum outcome for the enhancement of safety and minimisation of regulatory burden while encouraging innovation and excellence.

•

•

• •

Angela Gillham, deputy CEO, Maritime Industry Australia

MIAL

BACK IN 2009, THE COMMONwealth, states and territories agreed to the National Transport Regulatory Reform process which would seek to harmonise regulation of heavy vehicles, rail and domestic commercial vessels with a view to improving the safety and productivity.

Overall, this was a welcome reform.

For the domestic commercial vessel industry, this would mean a transition from regulation under the state and territory maritime regimes to coverage under a single national jurisdiction. It’s worth noting the diversity of the sector, which employs some 66,000 people.

thedcn.com.au

WOMEN IN MARITIME

Charting the course for change Nautical Institute president Jillian Carson-Jackson takes stock of the past year and looks forward to 2022

THE NEW YEAR IS A TIME TO TAKE

Image supplied

stock, to think back on the year that was and imagine the year to come. It is a time to reflect on the challenges we have overcome, and those that remain. In essence, it is a time to chart our course for the coming year.

Twenty-twenty-one was certainly a year of challenges – the ongoing pandemic, the new variants and continued lockdowns.

But it was also a year of hope. A year when we saw maritime reported in mainstream media, supporting fair treatment for seafarers as key workers and highlighting the many faces of diversity and inclusion.

DEALING WITH THE PRESENT The impacts of COVID continue to be felt. There are both quantitative and qualitative research that continues to identify concerning trends regarding feelings of isolation, uncertainty, bullying and victimisation around the world – and this included the maritime industry.

The ongoing adverse impacts caused by the COVID-19 pandemic reinforce and magnify the ill effects on seafarers’ mental health and wellbeing.

Shore leave and extended contracts for seafarers continue to be a challenge. The strain is not limited to the seafarer, but to their friends and families. Those ashore also experience the stresses of working in an environment of heightened uncertainty.

The Seafarer Happiness Index Q3 2021 noted the true cost of connectivity. This long-standing issue shows some significant digital divide, with many crew noting they have no access or poor access. One seafarer reported that internet on board coasts US$25 for 100 MB. Some others noted that they were given an unrealistic limit of connection, 250 MB for a month, which often doesn’t even support a single video call to their family.

On top of the feeling of isolation highlighted in the report, tensions onboard are rising. This includes tensions around diversity and inclusion, not only gender diversity, but diversity of nationalities, and

thedcn.com.au

even – in some cases – concerning national responses to COVID. How can we set a course for the future that addresses the issues of the present, with a vision for the future?

A FOCUS FOR THE FUTURE Diversity, inclusion, equality – and equity – all have a role to play in our vision for the future.

The focus for the future includes an ongoing focus on psychological safety as an integral element in a workplace health and safety. Within a diverse workforce, this is an essential element in a safe working environment that protects all workers, both afloat and ashore.

A psychologically safe work environment supports diversity, equality, equity and inclusion and enables the successful integration of vulnerable and marginalised groups. This can only be realised with vision, commitment, and support from everyone within in the industry.

CHARTING OUR COURSE How can we chart our course in 2022 for psychologically safe work environments?

Most of the groundwork has already been laid, looking at three key areas of policies and regulations; education and training; and providing clearly defined routes for reporting and response.

Policies and regulations: the “inclusive model” for the workplace exists – we have seen pledges to support diversity and inclusion from NGOs and organisations within the industry.

In addition, there are pockets of best practice for implementing policies that support diversity, inclusion and equity.

But we can, and must, do better. The 2021 annual report of the Diversity Study Group highlighted the lack of ethnic and female representation at senior levels of the maritime industry. The maritime industry can learn from other industries as it embeds diversity, equality and inclusion in its policies and regulations.

Education and training: there are many recognised approaches to support diversity and create psychologically safe working environments. These include promoting self-awareness and addressing personal bias; supporting clear, consistent and open communications; calling out inappropriate behaviour, including micro aggressions and physical actions; setting and respecting boundaries and, in support of the next point, providing multiple routes for reporting.

Clearly defined routes for reporting and response: in maritime we know that we need a plan to achieve a goal, we need a target to work towards, we need key performance indicators (KPIs). But you need data to set the KPIs, and then you need more data to measure the KPIs. The industry can confirm progress along the course to diversity and inclusion only if there are ways and means to support confidential reporting, with no fear of repercussions.

As we chart this course in maritime, we know that many other industries are also proceeding along the same route. We can work together, learn from best practice. We know that each one of us – no matter what race, gender, ethnicity, sexual orientation, disability – has a role to play. And, that really is the joy of facing a new year – learning from the past and looking to the future.

Let’s make 2022 a year to remember – not because of the pandemic or challenges we face, but because of the steps we can take to support diversity, equality, equity and inclusion.

Jillian CarsonJackson, president, The Nautical Institute

January 2022

19

INDUSTRY OPINION

Streamlining the cargo intervention model The government is working to encourage more trade while increasing security through the Simplified Trade System. Paul Zalai discusses the initiative

A NEED FOR INCREASED INTERVENTION The current container examination facilities at major containerised seaports are now out-dated necessitating reform.

sites within port precincts for the physical examination of goods within containers (assuming larger facilities are required above and beyond current CEF sites).

INTERMODALS As suggested by industry representatives, FTA/APSA see significant merit in using rail scanning technology with the potential of 100% x-ray of containers going to and from intermodal terminals.

Understandably, ABF/DAWE concerns are for the need to then establish multiple examination facilities and/or a reliance on mobile examination solutions. FTA/ APSA see an opportunity to progress this initiative by limiting the scanning deployment to facilities with a prescribed minimum throughput.

FTA/APSA see this as requiring immediate consideration as many of the facilities are now in a final design phase and could incorporate needs within these

FTA/APSA see merit in using rail scanning technology with the potential of 100% x-ray of containers The alternate proposed sea cargo model includes: continuation of 100% profiling/risk assessment against cargo reports/full import declarations (or a variation of the reporting models into the future); on a risk-assessed basis, an increased percentage on today’s levels (to be advised) to be scanned onsite at stevedore facilities; and on assessment of images, a percentage (to be advised) to be transported to a site within the port precinct for ABF and/or DAWE examination.

Preliminary concerns raised from industry appear to be in terms of the footprint required at stevedore premises for scanning and limited availability of separate

• • •

20

January 2022

greenfield sites. Importantly, this could also be showcased as an early deliverable towards the government’s broader agenda of border and biosecurity protection.

COUNTING THE COST FTA/APSA noted that any associated costs for these processes must be borne by the federal government and remove the onus on stevedores (and potentially intermodal terminals/depots) from using their own mechanisms to cost recover operational costs. FTA/APSA provided evidence that stevedores currently charge exorbitant terminal access charges with industry having no means influence service or price.

Should the federal government opt to recover costs from industry, it would require

further industry consultation. Assuming the cost recovery will be collected from importers via the Import Processing Charge, FTA/APSA see merit in the introduction of a differential (lower) payment from Australian Trusted Traders and green-lane biosecurity participants that presumably require a lesser level of intervention.

REGULATION FTA/APSA note the current CEF system whereby stevedores allow at least one day’s free storage from the time the container is cleared and returned to the stevedore.

FTA/APSA believes a similar arrangement (preferably offering three days’ storage) be maintained and extended to any licensed premise handling underbond goods.

Shipping lines also charge container detention penalties for delays in the dehire of empty containers to nominated locations. This is generally seven to 10 days from the time of container discharge/ advertised availability.

FTA/APSA see a need to provide importers with protections, via regulation, to ensure the detention clock commences from the time cargo is cleared from border/biosecurity intervention.

Opportunities clearly exist to increase the percentage of cargo x-rayed, increase detection of illegal imports and to better manage biosecurity threats. FTA/APSA applaud the ABF and DAWE in their initial stakeholder engagement to implement reforms with a focus of doing so in the least disruptive way for industry.

Paul Zalai, director, FTA; secretariat, APSA; director, GSF

Jim Wilson

THE SIMPLIFIED TRADE SYSTEM seeks to create a simpler, more efficient and digitised trade system. The STS is also an opportunity for government and industry to modernise business, enable trade growth and better protect the community. The Australian Border Force is leading, in collaboration with DAWE, one of the STS reform agenda projects, known as Streamlining the Cargo Intervention Model.

The aim of this initiative is to develop new intervention models for sea and air cargo to enhance the detection of threats and risks and maintain the integrity of the border. This will be achieved using automation and non-intrusive technologies embedded in the logistics chain.

thedcn.com.au

The Incredible Bulk The secret is quality in everything we do. There is nothing supernatural about it. liebherr.com

Port Equipment LHM 550

INTERVIEW

Port of Melbourne’s Webb Dock area

The way ahead for Melbourne

How will your background – which includes roles leadership roles at Toll Group, Asciano and Telstra – inform your role at Port of Melbourne?

The first thing I’d acknowledge right up front is that this is the first CEO role for me. But I do think I bring a good set of very relevant industry and corporate experience.

I’ve done a lot of transactional work in the past. I’ve been involved with a lot of big changes in companies at Toll, at Asciano, and also at Telstra, which is where I was for over nine years prior to Asciano. At Toll, I led the recent sale of the Global Express business to Allegro.

At Asciano, I led the takeover transaction that was one of the top-10

22

January 2022

public company takeover transactions ever in Australia. The transaction was valued at $12 billion and out of it came the current Patrick Terminals business (now a joint venture between Qube and Brookfield), the Pacific National businesses, and Asciano’s non-container cargo businesses became Linx Cargo Care.

Many of those businesses are key stakeholders or tenants in and around the Port of Melbourne.

Coming into the role, what are your main focuses for the Port of Melbourne business?

The first thing I’d like to flag is that I’m just three weeks in, and these are just the initial views and thoughts I have.

Saul Cannon, CEO, Port of Melbourne

First of all, the port and the team have done a really good job over the past several years in pulling together a comprehensive, long-term port development strategy.

That strategy is very clear in terms of what needs to happen to ensure that the port has the right infrastructure capacity to help meet Victoria’s future needs.

There are several big, important projects that are coming up in the future. Many have long lead times and there are a lot of moving parts – this is what excites and enthuses me about being here.

Currently, Port of Melbourne is the largest general cargo and container port in Australia, and these projects, and the port development strategy, are all about maintaining that position as the premier

thedcn.com.au

Greg Brave; Port of Melbourne

Port of Melbourne’s new CEO sat down with DCN editor Ian Ackerman in December to discuss the first three weeks at the helm of the company and what the future has in store. Mr Cannon joined the port in mid-November after working in leadership roles at Asciano, Telstra and, most recently at Toll Group as chief financial officer

port in Australia. It’s about having all the right port infrastructure for what those future needs are going to be.

Looking at trade forecasts, it’s going to be all about adding additional container capacity to meet the economic growth expected in Victoria.

How will you manage competing commercial interests at the port?

We take an overall view in terms of what’s in the best interest for the port, and what’s in the best interest for Victoria.

There’s always going to be different commercial interests, and you would expect that not all stakeholders will be happy with things all the time, What do we need to do to really ensure that we’re investing in the capacity of the port so we can meet the future needs of the port, the future needs of Victoria the future needs of importers and exporters in Australia.

There has been a lot of talk about the efficiency of Australia’s ports vis-à-vis other ports around the world. What is Port of Melbourne’s approach to boosting efficiency?

Who would have thought that the supply chain would have been front page news on a regular basis? Certainly supply chains globally are getting a lot of attention at the moment.

There is a range of different perspectives on how Australian ports operate relative to other ports around the world. There are

always different metrics we can look at.

If you look at one measure of congestion and look to the number of ships that are waiting, in Australia, we’re pretty good, especially compared to the congestion at LA and Long Beach and some of those big ports in China and other parts of Asia.

All of us need to be focused on how we continue to make supply chains more efficient and more productive – that’s in all of our interests.

There’s a range of things that go into that, broader than just port operations, we’ve got to ensure that we’ve got that continuity and efficiency right through the supply chains.

For us as Port of Melbourne, we’re always going to be focussed on how we can promote and drive efficiency, how we invest to the long-term interest of port users and what’s good for the Victorian economy.

What is the Port of Melbourne doing in the sustainability and environment space?

Sustainability is very important to us. it’s also a central part of the port development strategy.

Sustainability is a non-negotiable these days. It really is important to maintaining our social licence to operate.

We need to continue to drive innovation across our operations and the broader supply chain. We have recently developed a sustainability strategy that outlines a number of objectives and future priorities.

SNAPSHOT First quarter 2021-22 trade at Port of Melbourne Total container throughput 801,000 TEU* Average berth throughput 286 TEU/berth metre** Average container exchange 3138 TEU/vessel visit** Motor vehicle trade volume 108,000 units Liquid bulk trade volume: 1.3 million revenue tonnes Dry bulk trade volume: 1.5 million revenue tonnes Breakbulk volume 423,000 revenue tonnes *including Bass Strait and coastal trades **at PoM international container terminals

They include things like emissions reduction and how we implement climate resilience, how we engage the local community and the stakeholders on the issues they care most about.

We have put sustainability objectives into a number of the infrastructure development projects underway.

The Port of Melbourne has an important role to play, we’ve identified sustainability opportunities and emissions reduction opportunities across the broader supply chain.

But, I would acknowledge that it is still early days. The focus is to move forward.

FRUSTRATED BY TRUCK QUEUES, MANUAL PROCESSES & LACK OF VISIBILITY AT YOUR LOGISTICS FACILITY? Inbound changes everything • Inbound uses the latest technology to provide a platform for truck appointments, online document management & full visibility

• The Inbound community already connects hundreds of transport companies with logistics facilities around Australia – all in one place

• Inbound eliminates costly truck queuing and futile truck trips • Inbound is ideal for the COVID world – reduces physical contact with drivers and enables you to keep track of compliance with COVID regulations by arriving drivers

• Inbound drastically improves your ability to stay compliant with Chain of Responsibility legislation

If you run a logistics facility contact us today to find out how joining the Inbound community can help you

1300 803 873

sales@inboundconnect.com

inboundconnect.com

thedcn.com.au

January 2022

23

LOGISTICS & SUPPLY CHAIN

The logistics of disruption Words like disruption and unprecedented have become hackneyed and cliché in the logistics world over the past two years, but words become so for a reason. There is a new world emerging, and in this interregnum, we’re seeing a time of difficult logistics, high costs and general supply chain strife. Many outfits are finding their way through this time – even finding ways to thrive – through innovation

24

January 2022

thedcn.com.au

Mariusz Bugno; Wallenius Wilhelmsen

The year 2021 has been a story of unfulfilled potential in the ro-ro shipping segment

THE RO-RO OUTLOOK The container industry has attracted the limelight recently as a shining example of supply chain chaos triggered by the COVID-19 pandemic. However, there has been significant fallout into other shipping modes.

Ro-ro and multipurpose carriers are no different, dealing with industry-specific logistics and supply chain bottlenecks.

Wallenius Wilhelmsen vice-president, head of sales, Oceania Vedran Muratbegovic said the ro-ro specialist logistics company is seeing a recovery of volumes compared to 2020, which was obviously heavily impacted by plant closures in Q1/Q2 as a consequence

thedcn.com.au

of the pandemic. But, he said the company is not yet seeing a full recovery to pre-pandemic levels.

“Twenty twenty-one is, however, a story of unfulfilled potential with parts, and labour shortages impacting production and leading to demand for goods outweighing supply. Those supply chain pressures seen this year have certainly pushed some of the growth out in time.”

But, Mr Muratbegovic said the general outlook for the segment remains positive in key segments. He said for auto original equipment manufacturers (OEMs) are unable to meet demand.

“Today, light vehicle inventories are at a record low, but with production of semiconductors now ramping up, we assume the situation will stabilise during the second half of 2022. Meanwhile, consumer confidence, low interest rates and good job figures have led to a strong demand for durable goods including light vehicles,” he said.

“Global light vehicle sales are expected to reach 80 million units in 2021, up from 76 million in 2020 but still behind 2019 volumes, which reached 90 million.

“For 2022, moderate growth is expected to hike sales to 83 million, with global sales expected to reach pre-pandemic levels in 2023 before a big upswing in 2024 and 2025.”

Vedran Muratbegovic, vice-president, head of sales, Oceania, Wallenius Wilhelmsen

RESOURCES BOOM, MORE MACHINERY Mr Muratbegovic said due to generally high prices for mined commodities, mining machinery sales are expected to grow over the coming year.

“Broadly speaking, spot prices of mined commodities are now below their recent peaks but significantly higher than their long-term averages.

For many metals and bulks, this means that they are trading close to their records in the last decade.

“The notable exception is iron ore, where the price has retreated more than 50% since this summer,” Mr Muratbegovic said.

He noted that mined commodities tend to perform well in an inflationary environment like we have today, as price increases are inherently inflationary.

“Crucially, current prices enable miners to generate strong cash flows and are expected to continue doing so. Next year, miner earnings are forecast to be roughly twice the average from the last 10 years,” Mr Muratbegovic said.

“The strong profitability has lifted miner capex approximately 20% this year. Inevitable replacement of ageing machinery is expected to push spending in this category further up in 2022 and 2023.

“The market currently predicts that machinery sales will grow around 15% each of these years. At this rate, sales at the end of the period will be more than 20% higher than they were before COVID hit.”

And agricultural equipment demand is also expected to increase.

“Much like mined commodities, prices of agricultural products have rallied spectacularly since

January 2022

25

LOGISTICS & SUPPLY CHAIN

Wallenius Wilhelmsen vessels carry a significant portion of cargo other than cars and trucks

RO-RO WIND FARM LOGISTICS There is more to ro-ro cargo than cars and trucks, the vessels are suited to carry a wide variety of other cargo.

Mr Muratbegovic said a significant portion of what Wallenius Wilhelmsen carries is made up of other types of cargo.

“Our ambition is to continuously diversify the type of cargoes we carry. We see this process as an infinite game rather than something that has a fixed end goal.”

Mr Muratbegovic said Wallenius Wilhelmsen recently delivered a shipment of wind turbines from Germany into Fremantle. The turbines were to be deployed by Blair Fox, an electricity company that builds and operates wind farms in Western Australia.

He said the shipment included five base/mid-section tower stacks, each weighing 51 tonnes and measuring 21.3 metres in length; three top tower section stacks weighing 25 tonnes; and two blade stakes weighing up to 15 tonnes and 26.2 metres in length.

He said Wallenius Wilhelmsen used specialised handling equipment that ensured minimal lifting to reduce the risk of damage.

“Integrated solutions allow for better planning,” Mr Muratbegovic said.

26

January 2022

A reliable ocean service and safe handling solutions were only one piece of the puzzle.

“Our integrated logistics service offering meant we could also offer trucking from site to our customer’s compound for survey and then from there to the port of load in Bremerhaven, Germany. There, our team oversaw the terminal handling, cleaning and cargo lashing surveys for the customer.”

He said careful planning is always important when dealing with cargo of this size.

“The major challenges often encountered when transporting renewable energy components are mainly on the road due to the dimensions of the products.

Certainly, close collaboration and utilisation of our tailor-made logistics service was key to devising a detailed route plan that ensured both the road and ocean leg of the journey were optimised,” Mr Muratbegovic said.

“By combining the strength of our ocean services with our logistics expertise, we were able to deliver a solution for our customer, giving them peace of mind.”

REGULAR SAILINGS Wallenius Wilhelmsen has up to six sailings per month from Europe to Australia/NZ both via the Panama Canal and via the Cape of Good Hope, with three sailings per month from North America.

Mr Muratbegovic said Wallenius Wilhelmsen can change the capacity on the sailings depending on overall market requirements.

“The vessels we deploy in the trades to this region include our highest capacity vessels with a deck height of 7.1 metres (accepting cargoes of up to 6.2 metres in height to allow for height of equipment used which is approximately 0.85 metres in height) and ramp capacity of 500 tonnes (allowing for cargoes of up to 420 tonnes in weight),” he said.

“They are the only ro-ro vessels of their kind in the market and a true differentiator in the industry when it comes to shipment of oversized/project cargoes.”

thedcn.com.au

Wallenius Wilhelmsen

the trough in the first half of 2020. Globally, food prices are at their highest level since July 2011.

“This yields historically buoyant earnings for farmers – despite inflationary pressure on inputs such as fuel and fertiliser – and continued support for machinery investments,” Mr Muratbegovic said.

Agriculture machinery markets staged a very strong and swift comeback after the initial COVID shock, leaving export volumes essentially unchanged from 2019 to 2020. The strong momentum has continued this year, with year-to-date exports almost 30% higher in the three-month period ending in August.

“Next year, machinery manufacturers are forecast to record another 10% growth in revenues, followed by 5% in 2023,” Mr Muratbegovic said.

Your Partner In Complete Supply Chain Solutions

Quarantine

Warehouse & Distribution

Transport

Specialised Equipment

Supply Chain Solutions

Biosecurity Import/ Export Accredited

20,000 sqm ambient temperature

Quarantine Inspections/Unpack

3PL Capabilities

Connecting transport links to international trade

Specialised lifting attachments, slip sheets and slings

Direct Connectivity to Flinders Adelaide Container Terminal

Quarantine Rural Tailgate Inspections LCL/FCL Fumigation Quarantine Approved Wash Bay

15,000+ sqm of heavy rated hard stand Bulka bags / palletised / loose cargo

General Freight

Weighbridge

Bulk/Heavy Haulage

Reach stackers (45 Tonne)

Intra/Inter – rail and road

Forklifts (16T, 8T, 3.5FT)

Reefer plugs to accommodate chilled containers Independent Road Access to both sites FAK Consolidation/ Deconsolidation

Steam Clean

flindersfwd.com.au info@flindersfwd.com.au

LOGISTICS & SUPPLY CHAIN

SRG has moved closer to its vision of a full omnichannel experience for customers

Reconfiguring retail S Mathew Budden, performance and insights lead, SRG

28

uper Retail Group (SRG) is one of Australasia’s largest retailers, housing iconic brands including Boating Camping Fishing (BCF), Macpac, Rebel Sport and Supercheap Auto. Headquartered in Brisbane, its network extends to more than 670 retail stores and 12,000 team members across Australia, New Zealand and China. The group achieves annualised turnover in excess of $2.5 billion.

SRG’s supply chain team manages the movement of products from import and local trade partners to service all channels and brands with SRG (store, online and commercial). As part of this activity, its supply chain team manages inventory across its various company-owned distribution centres (DCs) and its store network.

DCN spoke to two key members of SRG’s performance and insights team, Edwin Yakop and Mathew Budden.

January 2022

“Over the last 12 months, we’ve seen a surge in online orders … and demand for products such as gym equipment increase due to extended COVID-19 restrictions in Australia and New Zealand.

“The increase in online volumes put significant pressure on our online fulfilment and customer service operations, and we started looking at ways to secure a consistent and well-defined network and move towards our broader vision of a full omnichannel experience,” Mr Budden and Mr Yakop said.

Up until recently, each of SRG’s 670 retail stores were available to deliver and the online order fulfilment system allocated orders based on proximity to customers without considering the true cost to fulfil.

As a result, more than 20% of home delivery orders were shipped interstate at a higher cost, despite the company having the items in stock in the state.

thedcn.com.au

Image supplied

Over the past year, retail group SRG has completely reconfigured its online supply and fulfilment network partly in response to the COVIDinduced spending splurge, Paula Wallace writes

In addition, more than 15% of home delivery orders were split into multiple packages, which also increased fulfilment costs. For example, a single order for a cricket bat, cricket pads and helmet might come from three different Rebel Sport stores.

SRG

GAINING INSIGHTS “We needed to understand our current delivery flows and how many zones inventory was moving across,” Mr Budden and Mr Yakop said.

“To do this, we pulled in a wide range of data sources such as postcodes with Alteryx Spatial Analytics to map out key delivery routes and location points (to and from the customer).

“We used a thematic map of geographical delivery zones across Australia to measure distance and travel time between points.”

Following the spatial analysis, SRG ran multiple simulations on alternative delivery routes or zones based on current production and demand forecast data, to determine outcomes. For example, when a fulfilment centre was in one of the new delivery zones, it would be prioritised. When it was not, SRG would pick a store and bulk up the inventory in that store to fulfil the demand.

By utilising retail stores as micro-fulfilment locations, SRG can realise its “click to consumer” customer promise around time.

“By presenting the data through the thematic map, we were able to secure executive leadership buy-in and implement a new delivery network operationally within two months,” Mr Budden and Mr Yakop said.

RECONFIGURING THE NETWORK SRG was able to completely reconfigure its online supply and fulfilment network to increase speed to customers, which in turn reduced costs and improved its scores on customer experience and satisfaction.

In addition, SRG was able to grow and mobilise its teams with one analytics automation platform, to help build agility into systems, decision-making and processes.

“Our supply chain is made up of several pieces … we have product that arrives from international vendors by sea along with product that arrives from Local vendors typically by road,” Mr Budden and Mr Yakop said.

“This stock is handled by one of our DCs that are positioned at key locations across Australia and NZ. “Our retail network is supported by a combination of rail and road freight and our online customers are supported by a range of carriers and Installation partners by both sea and air freight which are selected based on the type of products orders along with the customers’ requirements.”

Overall, this project has created a leaner and more streamlined approach to SRG’s online network that is easy to understand and implement.

“We have been able to build a platform that is able to grow with new investment opportunities to

thedcn.com.au

improve the customer promise around delivery,” Mr Budden and Mr Yakop said.

“The effective migration to the new system was able to support SRG with the sudden online order volume influx due to the global pandemic disruptions, while maintaining key business metrics such as Net Promoter Score.”

By optimising its online fulfilment network to ensure inventory from all of its brands could be more effectively managed by stores or fulfilment centres in key zones, SRG reduced its total number of parcels by 24%.

“In addition, by finding the most efficient route to each customer destination, we were able to reduce

Edwin Yakop, performance and insights manager, SRG

By presenting the data through the thematic map, we were able to secure executive leadership buy-in and implement a new delivery network operationally within two months.

Mathew Budden and Edwin Yakop, SRG

lead time by 11% and improve scalability to handle a surge in online demand during COVID-19,” Mr Budden and Mr Yakop said, adding that costs have been reduced by 18%.

“The flow-on benefit of reducing transit distance and lowering split deliveries means that we’ve be able to improve environmental outcomes in our supply chain, as part of our broader sustainability strategy,” they said.

Previously, each of SRG’s 670 retail stores were available to deliver and online orders were allocated based on proximity to customer

January 2022

29

LOGISTICS & SUPPLY CHAIN

A group of maritime and logistics professionals came together recently for a symposium organised by the Australian Maritime Logistics Research Network. By Vinh Thai

A Vinh Thai, Associate Professor, RMIT University

30

number of diverse themes were discussed at the recent, third symposium of the Australian Maritime Logistics Research Network (AMLRN).

The online event was organised in conjunction with the Australian Maritime College/University of Tasmania, the University of Sydney, and RMIT University, notably Associate Professor Vinh Thai, founder of the AMLRN. Themes covered by participants included the treatment seafarers during the pandemic; modern supply chain security; sustainability in Australia’s port and supply chain network; container shipping market movements; and the resilience of supply chain systems post-COVID. Among the keynote speakers was Professor Devinder Grewal, CEO of the Australian Institute of Shipping and Transport Logistics, who delivered a moving

January 2022

EFFICIENCY AND SUSTAINABILITY Jonathan Kempe, CEO and Founder of VERIFAI addressed the symposium on how modern technologies can augment supply chain processes and assist participants to operate more effectively and efficiently.

Mr Kempe delivered a presentation of how the internet of things can help to enhance granular visibility across stages of supply chains, including that of sea transport. He also illustrated the role of low-earth orbit satellites to increase transparency across supply chains.

Altogether, these technologies may help improve supply chain security outcomes, which will eventually benefit consumers. However, he noted that as these systems do require more data and connectivity, there is always the concern of cybersecurity.

Meanwhile, Bilal Ali Khan – general manager (new markets) at GeelongPort – spoke about sustainability.

Citing the Victorian government’s ports review to tackle the structural issues in sustainability of

thedcn.com.au

Image supplied

Navigating in a sea of disruptions

presentation on how seafarers have been “forgotten” during the pandemic.

Professor Grewal highlighted the notion of “90% of everything”: while seafarers run ships that carry the vast majority of goods we all consume, they have not been welcomed in many ports around the world.

He also noted that many countries have classified workers in other sectors as essential workers, but seafarers in many countries are still not classified in this way. According to the latest BIMCO/ICS 2021 report, the maritime industry currently employs 1,892,720 seafarers, but about 250,000 are stuck on ships well beyond their contracts (last year this figure was more like 400,000).

Professor Grewal then highlighted that the secretary-general of the International Maritime Organisation (IMO) wrote to all member states in October 2021 asking them to designate seafarers as key workers, and the International Labour Organisation and UNCTAD later joined the IMO’s call.

This designation allows seafarers to be prioritised for vaccination, permitting travel to and from ships.

So far, 62 out of 175 member states of the IMO have done so. In the Oceania region, Kiribati, Marshall Islands and New Zealand have already designated seafarers as key workers, but not Australia.

As governments have been busy focusing on their own citizens, these key workers who are essential to the wellbeing of the world remain forgotten, and the crew change crisis continues.

To address this crisis, Professor Grewal suggested that seafarers’ social/health data should be formally collected, analysed, shared and policies based on sound data should be made under harmonised protocols.

He also noted that data and technology are just enablers, the role of governance and leadership during global emergencies is critical. In the long term, a floor of rights for seafarers should be developed.

An interesting point raised during the panel discussion was the need for data analytics in maritime operations, and a co-ordination mechanism among states relating to a single national window for freight related data. supply chain networks, he highlighted key themes on augmentation of existing infrastructure. This was extremely reassuring as it ensures investment in port infrastructure is fit for purpose and does not result in stranded assets.

Mr Khan noted that GeelongPort sees sustainability as a journey where milestones are celebrated, with the most recent one being the organisation’s 100% carbon neutral certification under Climate Active.

Mr Khan explained that GeelongPort made the decision to go carbon neutral as it acknowledges climate change as one of the major risks currently facing communities globally. He also argued that, with a clear focus on creating a sustainable future,

private port operators should proactively engage with the government to deliver “future-focused port infrastructure”.

FURTHER DISCUSSIONS The symposium also included an interesting, insightful and thought-provoking industry panel discussion with Zoran Kostadinoski (IFCBAA); Rohit Sukumar (CMA CGM Group); and Mark Cooper (Tasmania Ports Corporation).

Topics of discussion include the impacts of current global supply chain disruptions on the Australian maritime industry, exporters/importers and consumers and successful strategies to date in tackling these disruptions.

Participants also discussed the impacts that COP26 commitments will have on the Australian maritime sector and what should be done to address these issues, with a focus on academic and industry collaboration.

An interesting point raised during the panel discussion was the need for data analytics in maritime operations, and a co-ordination mechanism among states relating to a single national window for freight related data, incorporating all key players in the maritime supply chain.

The need for tighter empirical research collaboration between institutions and the industry in relation to maritime logistics was also highlighted.

Professor Devinder Grewal, CEO, Australian Institute of Shipping and Transport Logistics

CALL: 1300 793 668 Port Shipping Containers - A proud supplier of container equipment to the Shipping, Transport and Logistics industries.

We supply new or used, standard and specialised equipment for domestic, import and export shipments including: 20ft & 40’GP/HC’s • Flat Racks Open Tops • Double Door • Side Door Half Height • Reefer Containers Custom Modified Containers

See all our products at portshippingcontainers.com.au thedcn.com.au

January 2022

31

LOGISTICS & SUPPLY CHAIN

EXPORT-IMPORT SOFTWARE START-UP LISTS ON NZ STOCK EXCHANGE After the company’s listing in November, TradeWindow’s COO Andrew Balgarnie spoke to DCN about the New Zealand-founded company’s plans to expand its business, offering digital systems for exporters, importers, freight forwarders and customs brokers

• • •

Can you tell us who your top investors are?

Our three largest shareholders are ASB Bank, a fully-owned subsidiary of Commonwealth Bank of Australia (CBA) which owns 22.4% of the shares on issue; AJ Smith, CEO and founder who owns 17.2% of the shares on issue; and Quayside Holdings – which is the majority shareholder of Port of Tauranga, New Zealand’s largest export port – which owns 7.9% of the shares on issue.

Can you explain why you recently listed on NZX without raising capital or issuing shares?

Our reason for pursuing a listing was to reinforce our status as a trusted partner of government agencies and major enterprises, including managing the most sensitive trade data of these parties. As a listed entity we are required to meet the highest standards of governance and transparency which supports our growth as a trusted organisation.

We joined the NZX as a direct listing – also known as a compliance listing – rather than an initial public offering, or IPO. It means our shares are listed on the main NZX board and can be bought and sold as with any other listed shares. However, we did not issue new shares to investors at the time of

32

January 2022

listing and the company’s founders did not sell down their shares because TradeWindow was not seeking to raise further capital after an oversubscribed capital raise of NZ$15 million that closed in September 2021.

What business are you generating in the Australian market?

TradeWindow expanded to the Australia market in February 2020, with the acquisition of Sydney-based Cyberfreight, a freight forwarding software solution since rebranded as TradeWindow Freight. We now have offices in Auckland, Sydney, Singapore and these are supplemented with sales staff on the ground in Melbourne and Brisbane and other locations in New Zealand and across Asia. Our solutions are used by exporters and importers of dairy, meat, grains, horticulture wine, seafood but also timber, building products, consumer items and manufacturers.

Can you tell us what other companies you have acquired this year and are you looking to acquire further businesses in Australia?

Strategic acquisitions can provide

Andrew Balgarnie, chief operating officer, TradeWindow

an opportunity to buy into a market position that would otherwise take years to build, as well as cross-sell and up-sell opportunities to both new and existing customers. In October this year, we acquired two further New Zealand solutions providers. These were customs clearance software solution firm Speedi Solutions Ltd, and freight quotation software solution from Freight Legend Limited. As an extension of this strategy we think that small, targeted acquisitions of established players in the Australian market provide a lower risk, faster, and stronger entry into the market.

How have you been assisting the Australian government to develop digital trade policies in relation to free trade agreements?

When the Australian government has been consulting on pending trade agreements, we have made submissions sharing our experience and perspectives on the policy clauses needed to effectively enable digital trade. In addition to this Australian government agencies have been observers of digital trade pilots between New Zealand and Asian trading partners, using TradeWindow’s digital trade platform.

thedcn.com.au

TradeWindow

Can you tell us about your products?

TradeWindow’s digital trade platform covers compliance, operations management, data sharing and storage, internal and external stakeholder collaboration, and end-to-end supply chain traceability. Digital trade solutions deliver most value if data can be captured at source, securely shared, and re-used across multiple use cases.

Our products fall into three categories: Productivity: TradeWindow Prodoc, ExpressDoc, Freight, and ExpressFreight Connectivity: TradeWindow Cube Visibility: TradeWindow Assure

Where our customers go, we go.

Together, our Group of five businesses feature an extensive network and knowledge of the logistics and supply chain needs of our customers.

Backed by a team of more than 3,300 specialists in Australia and New Zealand we support businesses across the forestry, resources, agriculture, automotive, breakbulk and FMCG sectors.

Speak to us about how we can support your business and together find efficiencies in your supply chain.

linx cargo care group linxcc.com.au

CYBERSECURITY

From reactive to P

orts around the world are reporting measurable increases in cyber-threat activities, particularly since the outbreak of the COVID-19 pandemic.

Between February and May of 2020 alone, the maritime industry overall suffered a four-fold increase in cyber-attacks and those attacks against operational technology systems specifically increased by 900% since 2017.

The International Association of Ports & Harbors (IAPH) says the accelerated pace of digitalisation in port and port facilities only intensifies the urgency for executives to focus on organisational cyber-resilience.

The recently launched IAPH Cybersecurity Guidelines have been developed to support the global port and port facility community in a manner consistent with IMO’s Guidelines on Maritime Cyber Risk Management (MSCFAL.1/Circ.3, 5 July 2017).

It is intended for use by the CEOs and C-suite executives to recognise the importance of managing cyber-risk and to instil an understanding that it is a responsibility that starts at the top.

The guidelines are mainly focused on developing the business case and reasonable level of investment in cyber-risk management, and to gain insights into how a cyber-event could impact a port or port facility’s ability to function, along with the cost of disruption.

The guidelines also address the need for executives to develop a cyber-risk management strategy and plan that achieves and sustains a defence-in-depth posture, provides key insights into the 21st Century cyber-

34

January 2022

threat landscape, and includes insights into impacts of cyber-attacks against integrated port systems.

The guidelines were considered at the IMO’s Safety Committee (MSC 104) in October, where IAPH called for its inclusion in the next version of the IMO Guidelines on Maritime Cyber Risk Management.

Committee chair Mayte Medina (United States) proposed a request to the secretariat to update the IMO guidelines, subject to agreement at the next meeting of the Facilitation Committee (FAL 46) that is due to take place in May 2022.

In September, the IAPH officially launched the guidelines at London International Shipping Week to coincide with its webinar on the topic, featuring Hamburg Port Authority CEO Jens Meier; Chin Yong Koh from MPA Singapore; and Lance Kaneshiro from the Port of Los Angeles.

STEPS TO IMPROVEMENT Pascale Ollivier, chair IAPH Technical Committee on Data Collaboration, started the recent webinar by asking Jens Meier what steps a port needs to take to improve its cyber-resilience.

Mr Meier said port executives are more open to investing in organisational resilience than ever before.

“Unfortunately, the number of cyber-attacks keeps increasing and this usually ends up being the turning point for companies to make changes.

“The global cargo flows are at risk of disruption and this risk increases with co-ordinated attacks targeting the maritime industry as we move towards more digitalisation and connected ports.”

Mr Meier said there are five important steps towards cyber-resilience that need to be considered: the acknowledgement of port leaders of cyberrisk management; the development of a common understanding of terms and shared responsibilities;

thedcn.com.au

Lassedesignen

DCN reports on new guidelines to support better cyber-risk management at ports globally and recent discussions with those involved in putting them together

Cyber-attack against port critical infrastructure represents a risk not only for the organisations responsible for such assets but also for their partners, suppliers and customers.

Hamburg Port Authority

Jens Meier, CEO, Hamburg Port Authority the identification of cyber-threat actors and understanding of the risk; adoption of zero trust concepts to protect, detect and mitigate; and the transformation of the organisation’s culture towards permanent cyber-awareness.

“Executives must first understand how a cyber-event could affect their organisation’s ability to operate, the potential costs of disruption as well as the impact on business opportunities, Mr Meier said.

The consequences of not taking actions to improve cyber-resilience in an organisation can lead, for example, to an interruption or loss of access to critical systems or infrastructure resulting in logistical delays; loss or delayed sales; and income, health, safety and environmental impacts.

“In order to achieve successful cyber-risk management, it is also necessary to establish a common language comprised by sharing common terms, establishing the financial grounding that will be key to take decisions regarding investment planning and resource allocation and recognising shared responsibilities by identifying and engaging cyber-stakeholders in the port environment,” Mr Meier said.

It is important not just to identify critical activities but also critical stakeholders. All critical third-party systems must be identified. Stakeholders should collaboratively create an inventory of key port systems, data flows and interactions with external systems.

“Cyber-attack against port critical infrastructure represents a risk not only for the organisations responsible for such assets but also for their partners, suppliers and customers,” Mr Meier said.

“Ports and port facility leaders should seek to identify relevant threat actor profiles and anticipate their motivations and objectives. This allows for an improved ability to develop cybersecurity strategies

thedcn.com.au

that can evolve to counter the tactics employed by threat actors.

“A strategy based on zero-trust framework as a mandatory requirement is about creating multiple layers of defence to make it more difficult for an attacker to succeed.

“Because one can’t reduce cyber-risk to zero, incident response and recovery are also very important steps to improve cyber-resilience and therefore cybersecurity information sharing represents an essential component of every cybersecurity program.

“Based on my experience, it is one of the most valuable tools for cyber-resilience,” Mr Meier said.

People are the first line of defence in the event of cyber-attack. This means constant investment in training staff is required, and transforming the organisation’s culture towards cyber-awareness.

HOW MUCH IS ENOUGH? The question of, “how much is enough?” should be considered when implementing a cybersecurity program, according to participants in IAPH’s webinar.

In order to determine levels of investment in cyberrisk management, executives must first understand how a cyber-event could impact their organisation in terms of functionality, potential costs of disruption as well as impacting business opportunities.

“In order to reach that a business impact analysis is crucial … this methodology will identify the biggest risks both operational and financial and risk-based security measures,” Mr Meier said.

The development of realistic loss scenarios, as part of a business impact analysis, enables port executives to gain critical insight and add additional benefits to business continuity.

Hamburg Port

January 2022

35

CYBERSECURITY

PSA Singapore’s Pasir Panjang Terminal

ENGAGING INDIVIDUALS Navigational devices or other IT equipment are the gateways for hacker attacks but behind every device there’s a human being and that makes every individual a potential target for cyber-threat actors.

“This is a complex process and one of the greatest challenges for most organisations is to prevent staff from opening phishing emails for example, with links to malware infection,” Mr Meier said.

“You need to implement a cyber-risk management process that trains staff to deal with these cyber-threats.

“The business impact analysis depends very highly on the experience of the people involved in the process; thus the business impact analysis is an iterative process.

“For example … we have started by classifying information according to confidentiality because many people are comfortable with these terms,” he said.

Based on the confidentiality categories this regulates how emails or documents are stored, transmitted and destroyed and which group and users can have access to them.

“In addition, we conduct phishing simulations to increase awareness of phishing and furthermore,

FIVE STEPS TOWARDS CYBER-RESILIENCE 1 Port leaders should acknowledge cyber-risk management as a toplevel responsibility recognising it as a competitive and operational imperative.

2 Successful cyber-risk management begins with and depends

on a common understanding of terms, financial grounding, and recognition of shared responsibility.

3 You cannot minimise the threat until you understand the risk.

4 Protect, detect and mitigate.

5 Work towards effective organisational cyber-awareness.

36

January 2022

cyber-emergency drills are good measures to test the appropriate handling of cyber-threats by the staff,” Mr Meier said.

“Last but not least, leaders and management need to set a good example in dealing with cyber-threats and cross-functional collaboration to enable different stakeholders from across the port and port facility is, from my point of view, necessary.”

THE ROLE OF COLLABORATION The IAPH’s guidelines note that cyber-defence in the port community often lacks a community approach, with individual companies focused on protecting their own systems, with limited or no co-ordination with other members of the port community.

The Maritime & Port Authority of Singapore’s CIO, Chin Yong Koh, mirrored these comments at the IAPH webinar.

“No single port authority can safeguard their global systems and networks alone,” he said.

“It is important for the port authority community to come together to share useful information that will enhance preparedness.”

Mr Koh said the port community often relies on news media for open-source information which at times could be too late to allow for preparation and response to imminent attacks.

A new initiative known as PACC-Net - Port Authorities CIO Cybersecurity Network - aims to strengthen cyber-resilience and response through an information sharing network of like-minded port authorities.

PACC-Net to date has been focused on information sharing (early and actionable information); competency development (exchange and sharing of best practice); and simulated exercises (enhance co-ordination and incident response).

“PACC-Net members have established a process for quick notification of early warning via secure communication channels and committed to regularly test the process to ensure readiness in response to evolving trans-boundary cyber-threats,” Mr Koh said.

thedcn.com.au

PSA Singapore

“Cybersecurity budgets should address cyber-risk management across all areas of the business including IT, operations, security training, physical security, health and safety,” Mr Meier said.

Marine Cargo Specialists Marine Cargo Specialists Marine Cargo Specialists We offer a comprehensive range of risk protection protection of risk range offer We Freight protection of risk range comprehensive offeraacomprehensive We Operators, Transport Forwarders, Road for Operators, Transport Road Freight Forwarders, Operators, Transport Road Forwarders, for by over Underpinned Operators.

Warehouse andFreight by over Underpinned Operators. and Warehouse by over Underpinned Operators.

Warehouse and networks. global and experience of years 40 networks. global and 40 years networks. global and experience ofexperience yearsof 40 Freight Forwarders Liability

Freight Forwarders Liability • Freight Forwarders Freight Forwarders Liability Freight Pak Business Insurance Freight Pak Business Insurance &Freight Custom Brokers Liability Pak Business Insurance

Road Transport TransportOperators Operators Liability Road Liability

Road Transport Operators Liability • Business Insurance Warehouse Operators Liability Warehouse Operators Liability Warehouse Operators Liability

Marine MarineCargo CargoOperators • Warehouse MarineLiability Cargo Marine Liability Marine Liability

MarineVehicle Liability Motor Motor VehicleFleet Fleet

• Marine Cargo Facility Charterers Liability Motor Vehicle Fleet Charterers for FreightLiability Forwarders Charterers Liability

• Cyber Crimethe Insurance Contact Midas team for all your insurance needs.

Contact the Midas team for all your insurance needs.

Contact664 the Midas for all your insurance needs.

1300 272 orteam info@midas.net.au

1300 the 664 272team or info@midas.net.au Contact Midas forwebsite all your www.midas.net.au insurance needs.

For further 1300information 664 272visit or our info@midas.net.au

For further visit our website www.midas.net.au 1300information 664 272 or info@midas.net.au For further information visit our website www.midas.net.au ForGLOBAL further information visit our website www.midas.net.au RISK MITIGATION FOUNDED ON LOCAL EXPERTISE GLOBAL RISK MITIGATION FOUNDED ON LOCAL EXPERTISE GLOBAL RISK MITIGATION FOUNDED ON LOCAL EXPERTISE

332516A_Midas Insurance I 2242.indd 1

15/01/2016 10:32 AM

CYBERSECURITY

Secure by D

eakin University’s Centre for Supply Chain and Logistics (CSCL) has undertaken some interesting work in recent years through the Implementing Food Traceability program.

This industry partnership aims to help Australian agrifood businesses achieve supply chain level traceability.

The program is developing a food traceability model that will help standardise data sharing along the supply chain. It will cover data protocols for all activities from procurement, production, processing and manufacturing, distribution, import and export, retail and consumer information.

As part of this work, the CSCL recently hosted a webinar where experts in the field provided advice for businesses on practical ways to build cybersecurity into their food traceability frameworks.

THE DIGITAL EVOLUTION One of the biggest impacts on the evolution of business digitisation has been seen over the past two years with the advent of the global pandemic.

CYBER-CONTROLS IN THE AGRI SECTOR BDO’s survey found that 95% of agribusinesses are not providing security training and awareness for their staff. In all other industries, 72% of organisations have implemented or are currently implementing cybersecurity awareness training.

Further results included: 10% of agribusinesses have not implemented anti virus protections, compared to 95% in general industry that have

• • •

76% of agribusinesses do not have a register of their digital assets, compared to 74% in general industry that have implemented a process to identify critical data and systems 74% of agribusinesses do not have an IT security policy or disaster recovery plan, compared to 76% in general industry that have and IT security policy and 80% of general industry that have implemented an IT disaster recovery plan Source: BDO

38

January 2022

The first shift experienced was the rapid move towards remote working.

Leon Fouche, national leader of cybersecurity at global accounting and advisory firm BDO Australia told participants of CSSL’s webinar, “We started to see a lot of investment in technology where organisations adopted remote technologies.

“The next phase was organisations started using technology more often, such as Zoom and Teams.

“What we’ve seen is organisations starting to invest more in digitising the way they are actually running their business operations and that has introduced a lot more risk,” Mr Fouche said.

He said businesses are now at the stage of undertaking risk assessments to ensure this rapid uptake of technology has not introduced additional risk.

“And now we are getting into the sustain phase where organisations are starting to realise the real benefit of digital processes in place for remote workforces.”

While this process may not have occurred for primary producers for instance, Mr Fouche said it’s important to understand that farmers’ broader supply chains have experienced this rapid adoption of technology.

CHANGING RISKS Mr Fouche cited the risk landscape reporting from the World Economic Forum as a source of valuable insights on the changing nature of risks.

It rates digital technology related risks at the top of the list from a likelihood perspective.

“What’s interesting is that it’s difficult to manage the likelihood of that risk eventuating,” Mr Fouche said.

“This means that cybersecurity needs to be looked at in the same way.”

He said there are two main ways to reduce cyberrisk: reduce the likelihood or the impact.

“I’m not saying we shouldn’t put better security protocols in place to limit the risk or likelihood of risk, but we need to start looking at the impact because we can’t control where our data is going,” Mr Fouche said.

BDO conducted research on behalf of Agrifutures Australia, which looked at cybersecurity threats to understand better the exposure of the agricultural sector. Combined with the results of BDO’s own survey data on cybersecurity, the work shows that

thedcn.com.au

Image supplied

Cybersecurity threats and attacks are increasing in their complexity and frequency, and food and agricultural supply chains are particularly vulnerable, Paula Wallace writes

the most concerning cyber-threats across all sectors include ransomware, data breaches, phishing, unauthorised access to information, malware and Trojan infection.

However, the specific threats to the agricultural sector differ slightly, with a greater focus on email/ website blacklisting, data breaches, malware, ransomware and theft of laptops and devices.

“One of the reasons why there’s a concern around some of these threats like email and websites is from activists targeting the sector,” Mr Fouche said.

He said this type of action has increased over the past year, with activists targeting agribusiness around meat processing and animal products.

“It’s important to understand where your risk is going to come from,” he said.

BDO

ALARMING STATS From the BDO research only 11% of respondents to its survey had actually experienced a cyber-incident.

“What’s alarming is that those who experienced a cyber-incident didn’t really know where to get help from,” Mr Fouche said.

At the top of the list of threats were payment re-direction fraud, followed by phishing, denial of service and data breach by a third party.

Only 18% of the respondents were comfortable or confident they could respond to a cybersecurity incident.

“And even less of them had a formalised plan in place and this is just one example of the security controls you can put in place to mitigate or manage the impact of a cyber-incident,” Mr Fouche said.

“What is quite alarming is that 16% of agribusiness organisations that we spoke to actually had a structured way of understanding a cyber-risk.”

If you compare that to the general industry average, 71% of organisations are undertaking regular cybersecurity risk assessments.

In addition, 65% are actually undertaking regular sessions where they report risk to their board and management; and 64% of organisations outside of agriculture at least have a baseline cybersecurity plan in place for third parties and cloud security standards.

“I think there’s a bit of work that needs to be done within the agri-sector and their supply chain to ensure that we improve some of those cybersecurity controls,” Mr Fouche said.

“We know there’s a lot of activist activity that’s targeted this sector effectively and they do have access to cyber-capabilities.”

AREAS OF FOCUS BDO advises there are four main risk areas that agribusiness should consider.

“We have moved our workforce to work remotely so we’ve had a lot of technology adoption, we need to understand the risks with that technology and the

thedcn.com.au

Plan that something is going to go wrong.

Make sure you’ve got a cyber-incident response plan in place, know who to contact when a cyber-incident is happening and how to actually recover from that.

Leon Fouche, national leader cybersecurity, BDO

same applies to data storage and cloud usage,” Mr Fouche said.

“A lot of organisations have started to move all their technology to the cloud, but they don’t always understand who has access to that information or where it’s located.

The other areas of focus are around firewalls and making sure staff are well educated and trained to understand cyber-incidents.

“Plan that something is going to go wrong,” Mr Fouche said.

“Make sure you’ve got a cyber-incident response plan in place, know who to contact when a cyber-incident is happening and how to actually recover from that.

“And it’s important that you actually test that and make sure everyone understands their responsibility,” he said.

ADAPTING TO THE “NEW NORM” – TOP RISKS AND HOW TO MANAGE THEM 1 Remote access technology risks – Newly adopted technology may have been rapidly configured without full assessment of the risks

2 Cloud storage data breaches – Cloud storage systems afford great

convenience, but this must be balanced with security to prevent data breaches

3 Human “firewall” failures – Staff are equipped with more

technology than ever before, which provides hackers with more opportunities to attack your data and systems

4 Facing the inevitable – Cyber-attacks will happen, and the time to prepare for an emergency is not during an emergency

5 Understand the risk – To manage technology, you must know how hackers compromise it – assess risk and have a cyber-risk management strategy

6 Understand your assets – To protect your information, you must

understand it – classify your data and decide what can and can’t go in the cloud

7 Empower your staff with training – People are the last line of

defence, and need to know how to recognise attacks and respond in the right ways – provide them with cyber-awareness training

8 Have a plan – Acting swiftly to prevent an attack from worsening is

essential – have an incident response plan to contain, eradicate and recover from cyber-attacks Source: BDO

January 2022

39

CYBERSECURITY

Complexity creating P Cameron Whittfield, cybersecurity and digital trust legal lead, PwC Australia

wC’s recently released Digital Trust Insights Survey makes for sobering reading. The results show that more than three-quarters of respondents believe organisational complexity is creating concerning levels of cyber-risk.

The survey, which collated the views of more than 3600 CEOs and other C-suite executives globally, also revealed that two-thirds of Australian organisations expect an increase in cyber-crime and only onethird have assessed exposure to risk of attacks on the software supply chain. More than half have not taken any actions for lasting impact on their third-party risk management.

Cameron Whittfield, PwC Australia’s cybersecurity and digital trust legal lead, told DCN, “Organisations are more heavily reliant on software services than ever before. There are so many efficiency gains to be made with this migration/transition, but they bring complexity to the supply chain,” he said.

There are also vulnerabilities that can arise in software solutions that impact many organisations.

“What we call day-one vulnerabilities can have a profound impact across many organisations using the same technology/software base,” Mr Whittfield said.

Changing ways of working and operating, accelerated by the pandemic, have introduced both new opportunities and risks.

“Certainly, moving to remote access in an incredibly short space of time has meant many organisations are not secure.

“Even fundamental protections can go a long way.

For example, deploying multi-factor authentication and ensuring your remote desktop protocol is behind

THIRD PARTY RELATIONSHIPS: KEYS TO SUCCESS

• • • •

Risk rate your vendors based on the criticality of their services and sensitivity of data they hold Perform periodic assessments over their key controls to get a view of their security posture and ensure key gaps are remediated Build strong, trust-based relationships with your key third parties to ensure timely awareness of any issues Review contractual clauses to ensure you have right protections and notification clauses built in Source: PwC Australia

40

January 2022

CUTTING THIRD PARTIES? Over the past 18 months, some companies have sought to eliminate the use of third parties in their supply chains, in an attempt to reduce complexity of their operations.

“This is occurring and is not unique to logistics.

However, it’s not a question of cutting out third parties,” Mr Whittfield said.

“Most businesses are reliant on extensive thirdparty support and many are themselves suppliers within that market.”

The supply chain is not linear, he added. Each primary participant in the supply chain (e.g. containers, shipping, port, land base support) itself has its own complex third party supply chain.

“This interconnectivity means we are all vulnerable to each other’s supply chain management and security.”

PwC’s survey shows that many organisations have a big blind spot here.

“This is not surprising. The complexity has “crept” up on us to a degree. But when 25% have little to no understanding of these risks … and more than 60% have failed to take any action to ensure a lasting impact on their supply chains … this becomes quite sobering,” Mr Whittfield said.

“It means there is a collective responsibility for uplift and each organisation must be looking to drive uplift across their supply chains. This should really occur at the vendor selection/due diligence phase.

“It’s one thing to point to a contract term that helps, it’s another thing to monitor and enforce those terms. A robust contract is cold comfort when a cyberattack occurs,” he said.

Many companies are looking to rationalise their supply chains/third party suppliers, which Mr Whittfield describes as a “sensible approach”.

“However, bringing services in-house is not necessarily the answer and it makes little sense to do this if organisations do not have the capability or capacity to do that work.”

thedcn.com.au

Image supplied

DCN digs further into PwC Australia’s recent insights survey into cyber-risk

the firewall can materially reduce the risk of phishing,” Mr Whittfield said.

In the shipping sector, PwC has worked with container and shipping companies and ports, setting up blockchainenabled solutions that can facilitate and protect data.

“The potential for productivity and efficiency gains in the shipping supply chain are enormous,” Mr Whittfield said.

“The value is hard to quantify … in fact, the upside has such potential that some of these solutions are likely to revolutionise the logistics landscape.”

Join us in the heart of Sydney for the 26th annual awards and be among the who’s who of the industry for a night of excellent entertainment and networking.

Tickets selling fast, log on to dcnawards.com.au to reserve your spot on the night!

NEW DAT

E! Contact Lloyd O’Harte, on 0414 272 574 or email lloyd.oharte@thedcn.com.au

Thursday 17 February 2022

dcnawards.com.au

Four Seasons Hotel, Sydney MAJOR HOST SPONSOR

SPONSORS

The Merchant Navy War Memorial Fund Ltd ( MNWMF )

www.mnwmf.com

AGRICULTURAL TRADES

A

ccording to the World Bank, healthy, sustainable and inclusive food systems are critical to achieving the world’s development goals and agricultural development is one of the most powerful tools to end extreme poverty and boost shared prosperity.

In that context Australia is playing a large part, with the value of agricultural exports forecast to reach a record $54.7 billion in 2021-22, according to government data, with higher prices for most commodities predicted to combine for another nearrecord harvest.

Agricultural exports have been a constant for Australia during the past two years, belying the challenges of COVID-19, a trade spat with China, a smaller disagreement over pulses with India and, until recently, a major drought in parts of New South Wales and Queensland.

The gross value of Australia’s agricultural production is forecast to reach a record $73 billion in 2021-22. The value of crop production is forecast to rise 7% to a record $39.5 billion because of strong price increases for grains, cotton and sugar, while the value of livestock production is forecast to increase by 8% to $33.5 billion, driven by higher volumes.

The Department of Agriculture, Water and the Environment reports, “The sector stands poised to capitalise on a remarkable combination of events.

Both seasonal conditions and prices are forecast to be much better than earlier expected.

“In Australia, the continuation of widespread favourable seasonal conditions means another nearrecord harvest is forecast. This has also contributed to continued optimism in the red meat industry, leading to record prices being paid for young cattle by both re-stocking graziers and processors.”

Overseas, key competitors are reported to be suffering poor growing seasons, DAWE stated, pushing up international grain prices.

42

January 2022

Australian agricultural exports have been a powerful economic driver, despite the challenges of COVID-19, drought (until recently) and trade tensions with China, David Sexton writes

KDS Photographics

VALUE OF GRAINS According to the Australian Bureau of Agriculture and Resource Economics, the winter crop production in 2021-22 is forecast to reach a new national record of 58.4 million tonnes. The new national record is driven by forecast of record high production in Western Australia and the second highest on record in New South Wales.

Record production of wheat (34.4 million tonnes) and canola (5.7 million tonnes) is expected and production of barley is forecast to be the second highest on record (13.3 million tonnes).

Australian wheat exporters have recovered much of the Indonesian market, which was challenged for a time by the Black Sea exporters. But higher sea freight rates (making Australia’s geographical proximity a trump card again) have helped, as has Australian wheat simply being a better fit for Indonesian bread and noodle-making requirements.

thedcn.com.au

thedcn.com.au

January 2022

43

AGRICULTURAL TRADES

Cattle at Darwin waiting to be shipped to Indonesia

Department of Agriculture, Water and the Environment Australian barley copped an 80% tariff hit from its largest customer China in 2020, with the Asian giant citing dumping concerns (the matter is being contested by Australia at the World Trade Organisation). The China market was estimated at $1.2 billion annually prior to the tariff imposition, or 58% of Australian barley exports, prior to the imposition of tariffs, according to the Grains Research Development Corporation.

The GRDC estimates the tariffs will cost industry around $2.5 billion over the initial five-year period of the tariffs.

“There has been significant work to build demand for lost barley exports, including focus on farm returns, other grains and modernising the grain supply chain,” the GRDC stated.

“Other factors, such as the supply chain, should also be considered in order to improve competitiveness and extract economic value.”

STATE OF THE AGRICULTURE SECTOR

• • • •

Gross value of Australian production is forecast to reach $73 billion in 2021-22.

Value of agricultural exports is forecast to reach a record $54.7 billion in 2021-22.

Higher prices for most commodities are forecast to combine with another near-record harvest.

COVID-19, labour supply and pest management are expected to remain challenges.

Source: DAWE

44

January 2022

Barley exporters have also sought to expand alternative markets such as Mexico and Saudi Arabia.

According to ABARES, rain during November 2021 has delayed the harvest of winter crops across New South Wales and Queensland and has likely led to a fall in grain quality in unharvested crops.

Flooding in northern and central parts of NSW have led to production losses for some producers, but ABARES does not expect this to significantly affect state totals.

CHALLENGES FOR COTTON AND WOOL Australian Cotton Shippers Association secretariat Tracey Byrne-Morrison said exporters faced the challenges of container shortages and loss of the China market but nonetheless benefitted from long-standing demand for cotton from Down Under.

“COVID-19 certainly impacted demand in the first three to six months of the global pandemic in 2020,” Ms Byrne-Morrison told Daily Cargo News.

“Of greater impact to Australian cotton exporters was the loss of China as a market for Australian cotton, with China imposing a soft ban on the import of Australian cotton.

“Over the previous two decades China has taken over 50% of the Australian cotton crop so the disruption caused by China’s recent decision to dissuade their spinning mills from using Australian cotton has been significant.”

Cotton exporters have experienced headaches in the form of container shortages. Previously, a large volume of containerised imports from Chinese shipping companies made containers available for the cotton export.

“In previous years this worked in cotton’s favour given the Chinese appetite for Australian cotton,” Ms Byrne-Morrison said.

“Unfortunately, this is no longer the case and means the number of empty boxes being returned back to China has increased, while the cotton exporter has

thedcn.com.au

ALEC

In Australia, the continuation of widespread favourable seasonal conditions means another near-record harvest is forecast.

Queensland’s economic powerhouse Every year, approximately $50 billion in international trade flows through the Port of Brisbane, connecting Queensland with the world.

Port of Brisbane is delivering:

As the Port grows, we are working with customers and stakeholders to facilitate trade and unlock supply chain potential to support more jobs and boost the Queensland economy.

• World-leading technology enabling larger vessels

• Approximately $466 million in infrastructure works over the next five years

• Whole-of-business Sustainability Strategy

• Five property precincts enabling better logistics, connections and trade

• Internationally-accredited environmental management.

Be part of Port of Brisbane’s growth story. To find out more about Trade and Property opportunities, please visit www.portbris.com.au

AGRICULTURAL TRADES

AUSTRALIA’S CONTRIBUTION TO WORLD WHEAT EXPORTS Source: GrainGrowers FIVE YEARS TO 2020 AVERAGE

Canada Australia

13%

8%

EU

16%

Other

Russia

21%

18%

US

14%

Ukraine

10%

to forage frantically for available dry FEU containers bound for alternative markets.”

Ms Byrne-Morrison said the lack of available containers and limited vessel services both significantly impacted export opportunity in 2021.

“It is a daily struggle to secure containers and space on vessels and the ever-increasing costs continue to shock,” she said.

“The world loves Australian cotton, but shipping rates are killing our opportunity to competitively price our product. Vessel availability and service costs are certainly having a big influence on our exports.

“It is almost impossible to secure services to the sub-continent at the moment and this places in jeopardy sales already completed and the possibility of future business to those markets.”

Ms Byrne-Morrison said the forecast for 2022 was in excess of 4.8 million bales following “fabulous rain” over much of the cotton belt.

“All major water dams and catchments, with the exception of Emerald region, are now approaching full

The world loves Australian cotton but shipping rates are killing our opportunity to competitively price our product.

Tracey Byrne-Morrison, Australian Cotton Shippers Association

capacity so it is safe to say that the seemingly neverending drought is now all but over,” she said.

DAWE has also predicted record strong growth for wool in 2021-22 as the global economic recovery increases demand for natural fibres, pushing up prices.

THE MEAT TRADE According to Meat and Livestock Australia, COVID19 caused some “seismic changes” in consumption patterns, both in Australia and in some of its major trading partners in 2021.

MLA cited social distancing measures and restrictions on hospitality venues’ capacity around the world causing food service consumption to drop significantly.

“However, retail sales of meat rose as consumers embraced cooking from home, offsetting the drop in food service demand,” MLA said.

COVID-19 also reportedly changed the way consumers bought their food products, with ready-to-eat meals, delivery services and online ordering all rising.

On the international stage, a number of key trading partners and competitors have had their economies ravaged by the pandemic.

“The Australian red meat industry is well placed.

Producers are receiving high prices due to the restocker demand, the herd and flock are rebuilding and there is a global protein deficit given the smaller global pig population due to African Swine Fever,” MLA stated.

“Also, the signing of the Australia-United Kingdom free trade agreement has the opportunity to unlock access to a huge high-value export market.

All signs are encouraging for Australian cattle, goat and sheep producers.”

According to MLA, Australia was the second largest beef and veal exporter in in 2020 (the most recently available figures) and the largest sheep meat exporter in the same year, followed by New Zealand.

LIVESTOCK EXPORTS Livestock remains an important export for ports such as Townsville, Darwin, Fremantle and Broome, albeit the sector faces intense scrutiny over the ethical treatment of animals.

Cruel slaughtering techniques used on Australian cattle in Indonesia promoted a moratorium on that trade a decade ago. More recently, footage of sheep suffering apparent extreme heat exhaustion prompted a ban on exports to the Northern Hemisphere during the northern summer.

The New Zealand government has banned live exports following the tragedy of the Gulf Livestock 1, a

KEY AUSTRALIAN LIVESTOCK EXPORTS (NUMBER OF ANIMALS)

46

2016-17

2017-18

2018-19

Source: DAWE

2019-20

2020-21

Buffalo

7692

10,325

7996

10,132

10,999

Cattle

909,065

958,905

1,242,100

1,290,597

893,148

Goats

29,020

17,316

18,324

12,627

15,002

Sheep

1,826,142

1,934,904

1,009,795

996,690

608,144

January 2022

thedcn.com.au

Port of Melbourne

Silos in Victoria where grains are stored before of being moved to port and then on to ships for export

vessel that capsized off Japan, claiming the lives of 41 of 43 crew members, as well as all the cattle onboard.

According to ABARES, reduced demand in South East Asia and ongoing high cattle prices in Australia is keeping exports in 2021-22 at the same level as 2020-21.

“The impacts of COVID-19 and associated restrictions have suppressed demand in Indonesia and Vietnam, our biggest markets,” ABARES stated.

Live exports are largely cattle and sheep. Feed and slaughter cattle are mostly exported to Indonesia and slaughter cattle to Vietnam. The Vietnam market is only a decade old but is said to have “matured quickly”.

Another important market is dairy heifers to China.

Sheep are predominantly exported to the Middle East for meat.

Australian Live Export Association chief executive Mark Harvey-Sutton said the industry had been able to operate during the pandemic, being declared an “essential service” and with port access ensured.

“One of the things the pandemic highlighted … was the importance of food security,” Mr HarveySutton said.

“We trade into some markets where food security is a very serious consideration for them and having that reliability was so important.

“In some instances, demand for livestock actually increased because there were challenges importing chilled and frozen product due to air freight constraints, so the industry has ticked along quite healthily [during the pandemic].”

There also are challenges, however. Some producers have opted to hold on to their stock as they look to rebuild their herds after the drought. This in turn placed price pressures on markets such as Indonesia.

“The price is a challenge but equally trying to source cattle at the moment is an issue,” Mr Harvey-Sutton said.

He noted that Broome has played an important part in the livestock trade in recent times.

“A lot of cattle have been coming out of that Kimberley Pilbara area this year,” he said.

Looking to 2022, Mr Harvey-Sutton said significant changes in terms of volume and price were unlikely.

thedcn.com.au

In some instances, demand for livestock actually increased because there were challenges importing chilled and frozen product due to air freight constraints.

Mark Harvey-Sutton, Australian Live Export Association “We will experience some lean years but there is an ebb and flow to the market as people stock or restock.”

And while the sector has its critics, Mr HarveySutton believes industry players have implemented appropriate animal welfare protocols.

“The industry implemented a moratorium on shipping sheep during those northern summer months,” he said.

“That was initiated by industry and subsequently enshrined by legislation by the government.

“I think [the moratorium] has been a very effective measure by industry and puts the industry on a more sustainable footing.”

FRUIT AND VEGE EXPORTS Fresh fruit and vegetables are also an important export, with the horticulture sector in 2019-20

SNAPSHOT OF THE WHEAT SECTOR

• • • • • •

World wheat indicator price is forecast to rise 8% in 2021-22 to US$290 per tonne.

Global supply of high-quality milling wheat is expected to fall.

Wheat is the major winter crop grown in Australia, with sowing starting in autumn and harvesting occurring in spring and summer.

The major export markets are in the Asia and Middle East regions and include Indonesia, Japan, South Korea, Malaysia, Vietnam and Sudan.

In 2021-22, Australian wheat production is forecast to be second highest on record.

Australian wheat exports are tipped to remain high to meet global demand.

Source: ABARES/DAWE

January 2022

47

AGRICULTURAL TRADES Containers are now an important source of transport for export commodities

Frank Frappa, Summerfruit Export Development Alliance exceeding $15 billion in production value. This included fruit, vegetables and nuts, from places such as the Goulburn Valley, the Riverland region of South Australia, northern Tasmania and south-west Western Australia.

Fresh fruit was the fourth largest agricultural export commodity through the Port of Melbourne, with 27,897 containers exported in the 2021 financial year.

“Fresh fruit exports through Port of Melbourne have seen a 33% increase over the last five years.

Hong Kong remains the dominant export market for all fresh fruit exports through PoM, accounting for 29% of all fresh fruit exports in FY21,” PoM said in a statement.

Deputy chair of the Summerfruit Export Development Alliance and LPG Cutri Fruit global – executive general manager, Frank Frappa, provided an overview of the upcoming season for growers and exporters: “Last season the summer fruit industry exported 20,000 tonnes, of which 11,000 tonnes went by sea – this was an increase of 40% on the 2019-20 season,” he said.

“Last year we had a later Chinese New Year which made it advantageous to load more by sea and we felt it was a safer option given the reduced flights and increased flight prices.

OUTLOOK FOR FIBRES

• • •

Cotton and wool prices are expected to remain strong throughout 2021-22.

Global economic recovery is driving increased retail activity and demand for natural fibres.

Favourable climatic conditions across Australia will promote sheep flock re-building and a large cotton crop.

Source: ABARES

48

January 2022

“This season I believe there will be shift back to air freight because of new challenges – transit delays, inflated cost of both exporting and at receival destination, major congestion, container shortages, scheduling issues, lengthy inspections, earlier Chinese New Year and insurances.

“This year for exporters, the focus needs to be on communication, fruit quality, risk mitigation, and knowing where your fruit is going.”

FINAL THOUGHTS According to DAWE, COVID-19 remains a significant risk to growth in demand for Australian agricultural produce.

“The speed of COVID-19 vaccine distribution is the key downside risk, especially in emerging and developing economies,” DAWE stated.

“Continued outbreaks increase the risk of further virus variants, which could be more resistant to vaccines, more infectious, or more likely to cause death or serious illness.

“This would slow the recovery in travel and discretionary spending, and lead to reduced prices for agricultural products.”

DAWE stated that high international freight costs and the availability of shipping containers would also present challenges, particularly for exporters of cotton, pulse and horticultural goods.

“While agricultural exporters are proving adept at diversifying into new markets or taking advantages of changes in trade flows, this does come with transition costs and lower prices,” the department stated.

Nonetheless, Australia’s agricultural sector appears to be in a strong position for the immediate future, due much to our proximity to growing markets in Asia.

As Curtin University agribusiness expert Dr Peter Batt wrote some years ago, “While it is the objective of most sovereign nations to be self-sufficient in food, in much of Asia it will be exceedingly difficult to produce enough food.

“To the south, Australia is well positioned to take advantage of the emerging opportunities.”

thedcn.com.au

Port of Melbourne

This year for exporters, the focus needs to be on communication, fruit quality, risk mitigation, and knowing where your fruit is going.

Attention Freight Forwarders & Customs Brokers

Take adva ntage of our Bra nd New Fumigatio nF at 7 Coal P acility ier R Banksmea oad, dow

N O S A E S G U B K N IT’S STI

FCL / LCL / AIRFREIGHT FUMIGATIONS RUNNING DAY AND NIGHT Our in house qualified fumigation team can assist with your fresh produce and flower fumigation requirements.

• 4.7 Secure Unpack for BMSB • 12.3 Heat Treatment • Refrigerated Storage Solutions • DoAWE Inspections • DoAWE Steam Clean • Transport & logistics

• Container storage and warehousing • Packing/Unpacking • Out Of Gauge/Crane Facilities • Exports • B-Double Access • FCL s77G Licenced Bond Facility

1800 817 544

www.priceandspeed.com.au 17 BAKER STREET, BANKSMEADOW NSW 2019 DOAWE: N2416 OR N3319 | UNDERBOND: FV68J | EXPORT: 2035

APPROVED ARRANGEMENT: N2416 @ 17 BAKER ST, BANKSMEADOW CLASSES: 1.1, 2.4, 2.4.1, 2.5, 4.1, 4.3, 4.6, 4.7, 12.1 & 12.3 APPROVED ARRANGEMENT: N3319 @ 7 COAL PIER RD, BANKSMEADOW CLASSES: 4.1, 4.6 & 4.7 ABF s77G DEPOT: FV68J @ 17 BAKER ST, BANKSMEADOW ONLY

Australia is the largest exporter of LNG and now it is working to up its import capacity with several projects well progressed.

And the Australian offshore sector may be busy soon with offshore wind developments on the horizon, Ian Ackerman writes

T

he liquefied natural gas (LNG) and offshore sector in Australia is in a time of progression and change. Australia has claimed Qatar’s biggestLNG-exporter-in-the-world crown, and there are also several LNG import terminal projects in the pipeline. And, at the same time, the offshore sector is moving to new, greener pastures. The offshore wind sector is primed for take off with state and federal legislation opening the doors for development.

In 2020, Australia produced 142.5 billion cubic metres, according to BP’s Statistical Review of World Energy. Of the liquified gas Australia produced, it exported three quarters of it, or 106.2 billion cubic metres, making it the biggest exporter of LNG in 2020. This volume was just a hair more than the 106.1 billion cubic metres of LNG for the year exported by Qatar, another major exporter of LNG.

50

January 2022

THE RISE OF IMPORT TERMINALS While Australian exports of LNG are booming, an uptick in LNG imports is looming on the horizon.

Several projects are underway to build import and regasification terminals on the east coast.

One such project is taking shape at Geelong.

In early December, Australian oil and gas company Woodside signed a memorandum of understanding with Viva Energy, which owns the Geelong Oil Refinery, to progress discussions on capacity rights at Viva Energy’s proposed LNG regasification terminal at Geelong.

Under the MOU, Woodside is to discuss the opportunity to acquire regasification capacity usage rights at the terminal to regasify LNG. Woodside said this could help underpin the Geelong Gas Terminal Project as a way to address an expected gas supply shortfall in the east-coast Australian market from the mid-2020s.

The MoU provides a framework and timeline to negotiate binding regasification capacity commitments – to be finalised in definitive agreements executed following Woodside and Viva Energy approvals prior to a final investment decision targeted for the third quarter of this year.

Woodside CEO Meg O’Neill welcomed the collaboration with Viva Energy on potential LNG

thedcn.com.au

GeelongPort

LNG & OFFSHORE

supply from Woodside’s portfolio to the Australian east-coast market.

“Our MoU with Viva Energy presents an opportunity for Woodside to supply reliable, costcompetitive LNG from our Western Australian projects and global portfolio into the east-coast gas market, which is predicted to face a shortfall in coming years,” Ms O’Neill said.

“Working to secure regasification capacity at Viva Energy’s proposed import terminal aligns with Woodside’s future production profile and the ongoing needs of east-coast Australian customers for reliable, lower-carbon energy sources.”

Viva Energy CEO Scott Wyatt said he was pleased to be progressing this opportunity with Woodside.

“Woodside’s experience and capability in LNG supply, shipping, terminals and international gas markets will assist us in progressing the Gas Terminal Project to a final investment decision,” Mr Wyatt said.

“Woodside’s potential participation in the Gas Terminal Project highlights the value of LNG terminals as virtual pipelines to deliver LNG from Australia and other sources into the east-coast domestic gas market.

“This can be achieved more efficiently and with lower environmental impact than building new pipelines to transport gas from other domestic gas sources to the south-east Australian gas market.”

At the same time, Viva Energy signed a heads-ofagreement with Höegh LNG to charter a floating storage and regasification unit (FSRU) for the proposed Geelong gas terminal.

thedcn.com.au

Norway-based Höegh LNG currently operates a fleet of 10 FSRUs and two LNG carriers, employing some 670 seafarers.

The heads of agreement sets out a framework and key terms for the negotiation of a binding time charterparty agreement and is a material step in the delivery of the Viva Energy Gas Terminal project, confirming an FSRU provider for the project.

The full terms of the time charterparty agreement are yet to be finalised and will be subject to the project achieving final investment decision and other conditions.

Viva Energy’s Mr Wyatt said the confirmation of Höegh LNG as the partner for the FRSU was an important step in the project’s development.

“Höegh LNG will bring its significant breadth and depth of experience in the FSRU market to the project, and we look forward to finalising the TCP agreement, and working with them towards our final investment decision in 2022,” Mr Wyatt said.

GeelongPort, meanwhile, has commissioned an independent assessment into the environmental and socio-economic impacts of the proposed LNG import terminal.

Deakin University’s Blue Carbon Lab is working on an evidence-based and independent assessment that will examine the impacts of the construction and operation of the terminal at Corio Bay. GeelongPort general manager of trade and property Bilal Ali Khan said the port is committed to better understanding the impacts a gas terminal operation will have on Corio Bay and the ability for existing and future businesses to operate within the port.

“GeelongPort has a longstanding commitment to supporting trade growth in a sustainable manner and we want to ensure a solution is delivered for Victorians

GeelongPort, with the Viva Energy Refinery on Corio Bay in the background

January 2022

51

LNG & OFFSHORE

PORT KEMBLA Meanwhile, plans to build an LNG import terminal project at Port Kembla in New South Wales are progressing.

The project includes the development of a gas terminal, an FSRU, wharf facilities and a pipeline connection to the existing east coast gas pipeline.

The Port Kembla Gas Terminal (PKGT) project is Australian Industrial Energy is developing the project, which it said will be able to supply more than 75% of New South Wales’ annual gas needs.

Höegh Galleon is to serve as PKGT’s FSRU

52

January 2022

The most recent development in the project is that AIE signed a long-term charterparty agreement with Höegh LNG to supply the FSRU for the project.

Under the agreement, the Höegh Galleon will serve the terminal, which has commenced construction of its berth facilities at Port Kembla and is expected to be operational by mid-2023.

In addition, AIE and Höegh LNG have agreed to collaborate on the future design and development of a new generation FSRU capable of receiving clean fuels which can be used as part of future green energy supply chains.

Initial feasibility work on the new FSRU has begin, and while the final design is yet to be confirmed, the vessel is expected to have the capability of delivering both natural gas and green hydrogen. This, AIE said will unlock further opportunities for the terminal to support a future hydrogen energy industry in Australia.

AIE chairman and CEO of Tatterang (AIE’s parent company) Andrew Hagger said the agreement with Höegh LNG supports AIE’s vision to actively resolve the energy crisis on the east coast and accelerate the use of clean energy fuels that support net-zero ambitions.

“With the phasing down of Australia’s fossil fuel industry already underway, the terminal will be critical to ensuring hundreds of thousands of Australian businesses and households avoid supply shortfalls from 2023 onwards,” Mr Hagger said.

“Now that critical infrastructure agreements and approvals are in place for the terminal, we look to NSW and Victorian natural gas retailers to now take active steps to help resolve the energy security crisis they have warned about.”

Höegh LNG chief development officer Richard Tyrrell said the company is excited by the potential to support Australia’s first natural gas import terminal, providing the market with resilience and security of supply.

“We share AIE’s clean energy vision and look forward to working together on the next generation capabilities that will ensure that the Port Kembla Energy Terminal remains at the forefront of the energy transition,” Mr Tyrrell said.

In November 2020, AIE signed lease for up to 25 years with NSW Ports for the PKGT. BLOWIN’ IN THE (OFFSHORE) WIND Construction of offshore wind farms in Australia has become much more likely after several developments over the past few months.

A major hurdle to offshore wind farm development was removed in November. The Australian Parliament that month endorsed a suite of laws that are intended to support the development of Australia’s offshore wind energy industry.

The three bills passed the final stage in the Senate on 25 November. They establish the regulatory

thedcn.com.au

Höegh LNG

that adequately considers the short and long-term social, environmental, cultural and economic implications of operating an LNG import terminal in Corio Bay,” he said.

“As a regional gateway for critical energy-related trade commodities, our priority is to invest in port infrastructure that not only delivers the safest, most cost-effective option with minimal environmental impacts, but which also helps facilitate Victoria’s transition to a low-carbon economy.”

Mr Khan said the findings of this research will play a critical role in informing the organisation’s infrastructure investment decisions into the future, as well as its submission to the Department of Environment, Land, Water and Planning’s Environmental Effects Statement process in relation to the proposed LNG import terminal.

Deakin University’s Blue Carbon Lab Professor Peter Macreadie said it was important that decisions are informed by high-quality and independent science.

“In a post-truth world it is increasingly important that we source reliable information and understand the facts,” he said.

“Blue Carbon Lab’s role isn’t to make decisions, but to approach the issue agnostically and act as an honest broker of information, so that those who are making decisions can clearly understand the potential social and environmental trade-offs if the terminal goes ahead,” Mr Macreadie said.

Dedicated to the extreme

Smit Lamnalco provides first-class, reliable and customised towage and marine services in Australia and PNG. No matter how remote or complex the operation, we are dedicated to exceeding expectations.

Discover the possibilities at smitlamnalco.com

Offshore wind energy may be soon coming to Australia

framework around electricity infrastructure projects in Commonwealth waters.

Energy minster Angus Taylor said the new laws would unlock development of a new industry.

“This framework enables the development of these new energy projects while safeguarding the environment, securing the health and safety of workers and protecting other maritime stakeholders,” Mr Taylor said.

“This legislation will accelerate a number of key projects already under development – projects that include the Star of the South, Sun Cable, and the Marinus Link transmission line, which will connect the mainland to Tasmania’s Battery of the Nation project, strengthening reliability and helping to keep the lights on and energy prices low.”

Star of the South is an offshore wind project, proposed to be located off the coast of Gippsland in Victoria. The projects is currently in the feasibility phase with environmental assessments underway.

The company said if the project is approved, construction could start in 2025. The project is jointly owned by Australian founders – Terry Kallis, Andy Evans and Peter Sgardelis – and offshore wind developer Copenhagen Infrastructure Partners.

Star of the South CEO Casper Frost Thorhauge welcomed the passage of the Offshore Electricity Infrastructure Bill. “[We] acknowledge the work of minister Taylor and the Australian government in prioritising this important legislation. We look forward to ongoing engagement with government on the development of more detailed regulations next year,” Mr Thorhauge said.

“This bill is a major milestone in kick-starting a new industry, realising Australia’s offshore wind potential and unlocking jobs and economic benefits for regional Australia.”

VICTORIAN LEGISLATION Shortly before the federal legislation passed the Senate, the Victorian government announced a $40-million

54

January 2022

Energy Innovation Fund that aims money at several offshore wind energy projects.

The state government said the fund would help kick-start three major wind projects, including Star of the South, along with projects run by Flotation Energy and Macquarie Group.

The state government estimated that these three projects could create up to 5600 jobs, bring more than $18 billion in investment into Victoria and power 3.6 million homes.

The funding boost will support feasibility studies and pre-construction development, including environmental assessments. It adds to $96 million the companies are already investing in these projects.

The Star of the South will receive $19.5 million to support pre-construction development activities for an offshore wind farm off the Gippsland coast. If built to its full, proposed scale, it would have up to 2.2 gigawatts of capacity – enough power to provide nearly 20% of Victoria’s energy needs.

Macquarie Group will receive $16.1 million to facilitate initial development stages of a 1-gigawatt offshore wind farm off the Bass Coast.

Flotation Energy will receive $2.3 million for scoping studies and surveys for a 1.5-gigawatt wind farm off the coast of Gippsland.

The funding will help each company conduct studies to determine the exact location of each project.

Victorian Premier Daniel Andrews called the state the “clean energy capital of Australia”.

“We’ve led the way on renewables, created 24,000 jobs with our VRET target alone, supported a thriving supply chain of businesses and attracted billions in investment,” he said.

“Offshore wind is the next step to create thousands of high skilled jobs, and we know we’re ready with a highly skilled workforce able to step into them.”

State minister for energy, environment and climate change Lily D’Ambrosio said, “This is the largest single offshore wind announcement in Australia’s history and places Victoria at the forefront of this pivotal new sector”.

“Offshore wind projects have the potential to create gigawatts of reliable, renewable energy and help us deliver on our ambitious target to halve emissions by 2030,” she said.

thedcn.com.au

Fokke baarssen

LNG & OFFSHORE

ADVERTORIAL

WHEN YOU NEED US, WE’RE THERE Auriga Group is a safe, focused, customer centric and dedicated team of Marine and Aviation professionals located all across Australia. Like many companies within our industry, COVID-19 has provided some new challenges to our business in 2021. The safety of our staff, clients and customers has been of the utmost importance, as well as ensuring service continuity. Whilst there have been some challenges, Auriga Group has achieved some key goals this year which we believe will project us into a successful 2022.

As of 1 July 2021, Australian Reef Pilots officially transitioned their name to the new Auriga Pilots and associated branding, which also encompasses Argonaut Marine Group (WA). This is the next step in our long-term plan to provide nationwide services encompassing a single national maritime pilotage platform for our customers that streamlines strategic, operational and administrative decisions across an evergrowing pool of services. Soon to come as well is the merger of Auriga Group and Aviator Group. This exciting development has been in the works for a long time and will ensure a symbiosis that enhances our current Aviation offerings. We look forward to providing you with more information as this completes in December 2021.

Our commitment to safety has always been unwavering, with 2021 being no exception.

Successful improvements include ISPO accreditation, implementation of eMPX (Master/Pilot Exchange) and COVID-19 PCR surveillance testing which was especially useful during the COVID-19 lockdowns. All of this has allowed us to operate at the highest standard, using the newest technologies to adapt to an era of unprecedented change. As we grow, we will continue to assess our safety measures and stay current with digital and manual improvements.

Another priority to Auriga Group is ensuring our employees have the best opportunities.

Notable progressions within our business this year include Sherie Evans to GM Reef, Chevi King to licensed marine pilot and Shakira Deen to North Queensland Manager. Some exciting new hires have also brought a fresh perspective, allowing Auriga Group to make necessary improvements to our services and internal processes. Early this year we appointed our first female Chief Financial Officer, Nicole Bradford and new Fleet Manager, Keith Shaw. Recently we also welcomed Andrew Pearce, GM of Aviation, who has been an integral force in ensuring smooth operations on the Aviator side.

As we reflect on another year passed, it is evident to us that an immense effort has been made by all our staff to keep things afloat and ensure we are still able to offer the best Marine and Aviation services in Australia. With vaccination rates increasing and restrictions easing, Auriga Group has no doubt that 2022 will bring some exciting change that will enhance our business and keep allowing us to really focus on what is best for our employees, clients and customers.

www.auriga.com.au linkedin.com/company/auriga-group-pty-ltd facebook.com/aurigagroupptyltd

TRADE LAW

What sanction reform means for your business Andrew Hudson explains what the thematic sanctions reforms passed by the Australian Parliament mean for your business MANY IN INDUSTRY WOULD BE aware of the Australian sanctions regime that prohibits dealings (whether in relation to the movement of goods or provision of finance) with certain countries or organisations.

This has an impact on many of those in the private supply chain, including freight forwarders and licensed customs brokers.

However, the nature of our sanctions regime has now been significantly expanded by the adoption of new “thematic” sanctions. The relevant legislation received Royal Assent on 7 December 2021 and the nature of the changes and their effect are described below.

BACKGROUND Australia imposes two types of sanctions regimes including the UN Security Council (UNSC) sanctions regimes and the Australian autonomous sanctions regime. As a member of the UN, Australia is obliged under the Charter of the United Nations Act 1945 to implement the UNSC sanctions regime, which is established pursuant to Article 41 of the Charter of the United Nations as follows: “The Security Council may decide what measures not involving the use of armed force are to be employed to give effect to its decisions, and it may call upon the Members

56

January 2022

of the United Nations to apply such measures.

These may include complete or partial interruption of economic relations and of rail, sea, air, postal, telegraphic, radio, and other means of communication, and the severance of diplomatic relations.”

There are several UNSC sanctions regimes in place which seek to combat an array of international issues such as human rights abuses and counter terrorism, without the use of armed force.

The Australian autonomous sanctions regime follows the same principles as the UNSC sanctions regimes. That is, to combat certain international issues without the use of armed force.

The Australian autonomous sanctions regime is imposed by Australia itself as a matter of foreign policy through the Autonomous Sanctions Act 2011 (ASA) and the Autonomous Sanctions Regulations 2011.

This sets up the terms of the regime and imposes significant penalties if breached.

Section 16 of the ASA sets out that a sanctions related offence can be punishable on conviction by imprisonment up to 10 years, or a fine of up to 2500 penalty units ($454,350 as of December 2021) for individuals and a fine of up to 10,000 penalty units ($1.8 million) for corporations.

Until now, the Australian sanctions regime imposed sanctions primarily

through a country-specific regime.

Previously, this left inadequacies in Australia’s ability to impose sanctions on certain activities if that activity was not specific to a particular country.

The terms of our sanctions regime as applying to the import and export of goods is also found in our customs prohibited import and export regulations which identify which imports and exports are prohibited absolutely due to sanctions or which can be conducted with a sanctions permit.

The Australian Sanction Office (ASO) is Australia’s sanctions regulator. It fits within the Legal Division in the International Security, Humanitarian and Consular Group of DFAT. The ASO has several roles including providing guidance on the nature of our sanctions regime, assisting with compliance and supporting enforcement of the sanctions. Since October 2020, the Australian online portal for seeking information on sanctions and applying for sanctions permits is conducted through Pax. THE AMENDMENTS The Autonomous Sanctions Amendment (Magnitsky-style and Other Thematic Sanctions) Bill 2021 was passed on 2 December and received Royal Assent on

thedcn.com.au

7 December 2021. The act amends the ASA to ensure that the Australian autonomous sanctions regimes can be either countryspecific or thematic. The act remedies perceived inadequacies with Australia’s autonomous sanctions regime and makes it clear that the matters that the autonomous sanctions may address is non-exhaustive and includes both country specific and thematic sanctions of any kind. The act also sets out the circumstances in which the thematic sanctions can be created and imposed.

Some of the thematic sanctions specifically mentioned in the explanatory memorandum to the act include: the proliferation of weapons of mass destruction; threats to international peace and security; malicious cyber-activity; serious violations or serious abuses of human rights; undermining good governance or the rule of law, including serious corruption; and serious violations of international humanitarian law.

These reforms came about as a result

• • • • • •

behaviours beyond human rights abuse which would allow the imposition of thematic sanctions.

The act sets out the amendments to the ASA with more specific details of the new regime to be found in regulations to be made pursuant to the act now that it has received Royal Assent. The exposure draft of those regulations sets out a wide variety of thematic sanctions that can be imposed, although they are not intended to be exclusive.

There will also be a review of the effect of the act three years after it has come into effect.

WHAT YOU NEED TO KNOW With the expansion of Australia’s autonomous sanctions regime, it is important for Australian businesses to undertake due diligence to ensure they do not engage with any designated persons or entities under the wider sanctions regime.

A consolidated list of all designated persons and entities is regularly updated

by DFAT and can be found on its website linked here. It is the responsibility of

Pressmaster; Ian Ackerman

With the expansion of Australia’s autonomous sanctions regime, it is important for Australian businesses to undertake due diligence to ensure they do not engage with any designated persons or entities under the wider sanctions regime.

of the report by the Human Rights Sub-committee of the Joint Standing Committee on Foreign Affairs, Defence and Trade’s titled Criminality, corruption and impunity: Should Australia join the Global Magnitsky movement?

This report recommended that Australia impose “targeted sanctions legislation to address human rights violations and corruption, similar to the US’ Magnitsky Act 2012”, which will ensure that Australia is not a safe haven for human rights abusers and their illegal gains.

The act and its amendments to the ASR goes further than contemplated by the report in a manner similar to thematic sanctions regimes in the US, the UK and Canada identifying a number of

thedcn.com.au

Australian businesses and individuals to check this list as a part of their due diligence agendas.

As set out above, it is a serious offence to do business with any designated person or entity without a permit and if breached, can result in severe penalties including jail and significant fines. If you wish to do business with a person or entity who is on the Consolidated List, you must make an application for a sanctions permit through the Australian sanctions portal Pax. The amendments to Australia’s sanctions regime create additional compliance issues for those in the private supply chain providing services to those exporting and importing goods including freight forwarders and licensed

customs brokers. Those providing such services will need to provide education on the revised sanctions regime to all their employees, undertake their own due diligence on proposed movements of goods and the parties involved and secure sanctions permits where required, if they are available.

Those compliance obligations will also extend to refusing to provide services where the proposed transactions breach (or are likely to breach) our sanctions regime.

GENERAL REFORM OF THE AUSTRALIAN SANCTIONS REGIME AND OTHER RELATED REFORMS In addition to the adoption of the “thematic” sanctions described above, there is also a proposal that the ASR will be the subject of more comprehensive reform during 2022.

Changes to the ASR will operate alongside likely amendments to the modern slavery legislation following its own review in 2022.

Those amendments are anticipated to introduce prohibitions on the import of goods produced in part or in whole by forced labour in the same manner as such goods are already prohibited from import into the US. These changes will add significant burdens to those in the private supply chain, creating more due diligence and compliance obligations to prohibit trading with certain persons and certain goods in the interests of restricting trade determined to be unacceptable by government.

As always, we will keep you informed of any further developments and would be pleased to provide more detail and information on the terms of the Australian sanctions regime and how it can be implemented in your business.

For advice on all aspects of Australian and international trade and customs obligations please contact our customs and trade team.

Andrew Hudson, partner, Rigby Cooke Lawyers

January 2022

57

INDUSTRY OPINION

The problem is ports, not ships The current supply-chain crisis is a crisis of poor port performance and congestion, Jim Wilson of Shipping Australia writes

PORT PROBLEMS There are many problems with overseas box ports. But we are concerned with local ports. We know from the ACCC report and other public documents that Australian container ports are not working fast enough. Ports keep ships waiting for days before getting vessels to berth. Port crane rates too slow. Ports aren’t turning

ships around in good time. Poor port performance causes ship congestion, which causes a cascade of ill effects.

Ships waiting in queues cut capacity from the market. About 12.5% of the entire global capacity of about 25 million TEU is being wasted in congested port queues, analysts have said.

Incidentally, let’s consider a propaganda point put out by the Australian port community. They say only 10% of ships arrive on time, with the unspoken implication that all the various supply chain problems are therefore the fault of the ocean shipping industry.

Let’s demolish this propaganda. As of early December 2021, the Port of Brisbane can cause ships to be delayed by up to two days. Botany can cause ships to be delayed by up to four days. Melbourne can cause ships to be delayed by up to 13 days.

Fremantle can cause ships to be delayed by up to three days.

Let’s assume, for a moment, that ships are not being delayed by overseas ports and that they arrive on time at a port in Australia. If the ships then call at each of the other three ports, then the ships could be delayed by up to 22 days. Each of the other three ports can legitimately record every ship as being “late”, and “hey, presto!”… there is now statistical proof

Port Botany

58

January 2022

that those rascally scoundrels are late 75% of the time!

But, really, if each Australian box port is causing compounding delays to ships, is that indicative of a fault of the global ocean shipping industry or is it indicative that there is a systemic problem in Australian box ports?

COSTS OF CONGESTION Meanwhile, congestion and poor port performance are extraordinarily costly to the shipping industry because ships are expensive to run. Ships calling in Australia typically carry about 4000 TEU. Currently, the one-day operational cost of a 4000-TEU ship underway at sea is about $225,543 a day. That’s $157 a minute!

Bigger ships cost even more.

At those costs, shipping companies simply cannot afford to have ships delayed for days upon days. Ships may sail slowly to delaying ports in the hope that the delay clears. Incidentally, the revised time of arrival is agreed in advance with the container terminal. If delays are bad, then surcharges may be issued to cover the wasted costs. If port delays are very bad, ships may skip a port. If delays are awfully bad, shipping companies may cancel specific sailings. When port delays are extraordinarily bad, shipping companies may reduce the frequency of services. A change from a weekly to a fortnightly service means that supply of shipping services is cut in half.

Poor port performance, delays and congestion crush the supply of shipping services. They also degrade service quality, increase costs and create upward pricing pressure on freight rates.

Now that we understand the background, we can address some of the nonsense being peddled for what it is: nonsense.

THE FREIGHT RATE DEBATE Freight rates are not high because of price gouging, they are high because the demand for container transport has surged and

thedcn.com.au

Ian Ackerman

THE JOB OF A SHIP IS TO GET FROM Port A to Port B in a reasonable time.

And that’s exactly what ships are doing.

Demand for containerised cargo transport has massively increased as populations around the world buy more goods. Never before in human history has so much cargo been moved in so little time.

Ships are delivering the goods.

The job of a port is to bring a ship in from the sea, process it, and send it back to sea in a reasonable time. If the ship leaves Port A and turns up at Port B in a reasonable time, then the port has done its job. However, ships are being delayed for days and days by the port. Ports are currently not doing their jobs in a reasonable time.

The fact that ships are arriving at ports, and are being held up by ports, is proofconclusive that the supply chain crisis is a port congestion crisis.

the supply of shipping services has been crushed by subsequent port delays and congestion. Service levels are down not because of an evil plot, but because port performance is poor.

Readers may, meanwhile, be surprised to learn that ocean shipping is generally a poorly rewarded activity. Rates have been so low that the average ocean-going carrier had an operating margin of minus 2.9% in the six years following the 2008 financial crisis. Eight of the major ocean shipping companies recorded an aggregate net loss of more than US$2.5 billion in the five years prior to 2020 despite generating more than US$350 billion in revenues.

Here’s the spin-free truth.

Ocean shipping is, generally, but not always, a poorly rewarded activity relative to the capital invested and the risk run.

Sometimes, because of market dynamics, it becomes a highly rewarded activity. High prices, whether that’s for shipping services or for Australian puppies, do not prove anything other than the fact that prices are high. The current market dynamics were caused by the arrival of COVID, a surge in demand for containerised goods

and the inability of ports around the world to cope with the surge.

Fully laden box ships are leaving ports overseas and arriving in Australia. As the job of ships is to transport cargo, the fact that a ship has arrived at port is proof that the ship has done its job. Ships sailing on the high seas are largely not subject to delay – there are few sets of traffic lights or congestion queues on the open ocean – but they might well be delayed at the previous port of call.

In Australia, there can be many delays.

Australian box ports don’t turn ships around quickly enough. That causes a cascade of increased costs and adverse supply chain effects both on the marine side and on the land side. The supply chain crisis is, in fact, a port performance crisis.

PASSING PROBLEMS However, the current, temporary, problems in the supply chain are just that: temporary.

The root cause of the current problems was caused by the surge in demand from COVID and government lockdowns. It will, eventually, unwind. But the propaganda served up by importer and exporter bodies, and which is aimed at encouraging

Jim Wilson, policy and communications officer, SAL

politicians to regulate the market in such a way that would benefit their sectors to the detriment of everyone else, could create adverse effects for years to come.

Looking forward, there is a bigger problem. Today, Australia handles about eight million TEU. There are forecasts for a massive increase in trade over the next few decades. Some ports are forecast to handle upwards of 7 million TEU. Without a radical improvement in performance, it is hard to see how Australia’s box ports will be able to handle that forecast growth in trade.

A market regulated in favour of shippers, and ports that cannot reasonably handle the forecast future volumes of trade, would hurt all Australians, no matter how far they live from the sea.

SCLAA Industry Networking Breakfast Building Resilience

Reserve your seats/Enquire about Sponsorship benefit for this event, contact secretary@sclaa.com.au

EVENT DETAILS: 8:30- 11am, Tue 8 March, 2022 The Members’ Dining Room, NSW Parliament House, 6 Macquarie St, Sydney, NSW • Breakfast/Networking • Industry keynote speakers • Members $75 / Non-members $90 KEYNOTE SPEAKERS:

RAISING FUNDS FOR WAGEC (Women’s and Girl’s Emergency Centre)

MARIKA CALFAS CEO- NSW Ports Resilience in the Supply Chain – A Ports Perspective

ALISON CUSACK Cusack & Co, WISTA Resilience in the Work Place

HELEN WATERS SILVIA Chief Executive Officer, Women’s and Girls’ Emergency Centre Resilience in Life

In line with the theme of Resilience, on IWD, SCLAA has chosen the Women’s and Girl’s Emergency Centre (WAGEC), based in Redfern, as our charity to support through fund raising at this Event. WAGEC was founded more than 40 years ago and works tirelessly to house and support victims of Domestic and Family Violence. Each night at WAGEC they are accommodating 200 women and children. They are working to help build safe futures for all women and families by ending gender based violence in a generation.

For more information visit www.wagec.org.au All sponsorship monies will be donated toWAGEC and are tax deductible

thedcn.com.au

January 2022

59

INDUSTRY OPINION

Australia’s reliance on imports is a cause for concern Australia is vulnerable to further supply chain ramifications as unprecedented shipping delays continue into the New Year, David Aherne writes

entered uncharted waters. The COVID-19 pandemic has turned the global supply chain on its head, with international shipping lines being ill equipped to handle unforeseen port closures and rising consumer demand.

Australia’s reliance on international imports is a cause for concern for Australian importers leading into 2022. The country’s remote global proximity has meant transport costs have continued to rise, leaving some business owners to grapple with rising freight rates, which will inevitably translate to increased retail prices.

witnessing mandatory factory closures and reduced manufacturing hours in China. These measures have been implemented to reduce pollution in the lead-up to the Olympics, which will be broadcasted internationally.

Although more expensive, some importers have turned to air freight in an attempt to avoid ocean shipping hold-ups. With international travel back on the cards after a substantial hiatus, passengers will be taking up the weight of air cargo once held by goods whilst international borders were closed.

It is for this reason freight forwarders should expect rates to continue to

Unfortunately, I do not expect the shipping and logistics industry to start returning to pre-pandemic standards until Q4 2022 at the earliest.

With further supply chain delays anticipated, I urge importers to implement contingency plans to protect themselves, and their consumers, from additional shipping ramifications.

FORECASTS FOR 2022 AND BEYOND The onset of 2022 will house major events, including Chinese New Year and the highly anticipated Beijing Winter Olympics.

As celebrations are imminent across China, major ports and factories will be expected to close to allow for such.

Thus, adding extra pressure to already struggling supply chains.

Australia relies heavily on imports from Asian countries, with northern China being one of the most frequented shipping routes. Once full-scale production returns, workers will be inundated with paperwork, as they work to fulfil a backlog of orders.

However, these processes may be considerably delayed, as we are already

60

January 2022

increase as cargo space becomes less readily available.

Toward the tail end of 2021, we bore witness to quarantine delays exceeding the previous turnaround of one to two working days, with the sheer volume of work said to have been delaying clearances.

This disruption caused customs and quarantine services to become out of sync, impacting food, plant material and wooden article imports primarily.

If the symbiotic nature of this relationship continues in the New Year, Australian importers will be predominantly affected and face additional waiting periods and subsequent cost escalations.

Last year, we witnessed freight forwarders having to move containers off the wharf to bonded stores to prevent excess wharf storage. Freight owners will need to prepare for this possibility again in 2022 if quarantine delays continue as anticipated.

The COVID-19 pandemic uprooted the world’s financial system, with it commonly known that shipping rates may have increased by 500% on particular lanes. However, it is interesting to note consumer demand increased despite this factor. With the global economy currently in recovery, I only anticipate consumer demand to continue to rise as countries emerge from lockdown.

THE FLOW OF GOODS With restrictions easing, it is probable retail stores will see an influx of shoppers enter their doors in 2022.

However, limited vessel accessibility will cause producers to keep stock on hand, causing inevitable frustration for freight owners working alongside retailers who will be seeking to re-stock inventory levels expeditiously to keep up with consumer demand.

Larger transport vessels are needed to ensure importers have access to more containers and cargo space for the shipment of goods.

Having additional inventory onshore will be required to account for future supply chain disruptions; this will help to move businesses away from just-in-time shipping approach seen this year.

Preparation and forward-thinking could aid potential strain as we approach 2023.

Unfortunately, I do not expect the shipping and logistics industry to start returning to pre-pandemic standards until Q4 2022 at the earliest.

David Aherne, managing director and CEO, Across the Ocean Shipping Image supplied

THE SHIPPING INDUSTRY HAS

thedcn.com.au

INDUSTRY ANALYTICS

Ports Australia tool awarded Ports Australia’s visualisation of monthly trade statistics has been acknowledged at the recent Tableau Conference

Image: www.portsaustralia.com.au/resources/trade-statistics

PORTS AUSTRALIA’S ANALYSIS of local shipping data has been picked as one of the most notable and valuable visualisations from around the globe as part of an initiative by global analytics company Tableau.

The visualisation of monthly trade statistics was chosen from more than 3 million visualisations published on Tableau Public to be included in the TC21 Viz Gallery project.

Ports Australia posted the visualisation in March 2021 and it has since been viewed almost 10,000 times.

It provides comprehensive statistical information on monthly shipping data for all major Australian ports – including throughput, value of cargo and volume of commercial shipping traffic.

It is one of just 31 visualisations from around the world to be on display at the gallery. The TC21 gallery showcases the work of authors on Tableau Public, a free platform that allows anyone to see, understand, and share data insights with others.

With more than 2 million creators and the world’s largest repository of interactive data visualisations, Tableau Public enables everyone to efficiently share relevant data as conversations are happening.

KJ Kim, community manager, APJ, Tableau said, “The Viz Gallery is a forum to show the community what’s possible with visualisation, helping them learn and be inspired when approaching their own projects.

“When looking at the Ports Australia entry, you appreciate the importance of this dataset to the shipping and logistics community, as well as the stories they are able to tell with this data.”

The portal can be accessed at: www.portsaustralia.com.au/resources/trade-

DATA FROM MORE THAN 40 AUSTRALIAN PORTS

THROUGHPUT DATA FROM JANUARY 2018-PRESENT

A WIDE LIST OF IMPORT & EXPORT COMMODITIES

statistics

thedcn.com.au

January 2022

61

OUT & ABOUT

Logistics professionals of all stripes had a fine time at the SAL Christmas luncheon

The return of fun As pandemic-era restrictions on gatherings lifted, industry was able to observe annual end-of-year events such as the popular Shipping Australia Christmas Luncheon industry (or just about any industry) loves, it’s a long lunch. And, after two years of lockdowns and pandemic-related restrictions, the atmosphere at Shipping Australia’s annual Christmas luncheon was one of glee and excitement. For many in attendance, it was the first opportunity to socialise and chat with colleagues from across the industry in a very long time.

As the lunchtime feast commenced, diners were serenaded by singer Alfred de Souza performing familiar hits. And this year, the surprise entertainment was Merrick Watts, who has appeared in television programs such as Underbelly and SAS Australia. After a few jokes about the freight industry fell flat, his set gathered momentum and there were chuckles heard throughout the room.

As the event wound down, lunchers ambled out of the Hyatt Regency event room in search of the next place to sit down for a drink and to continue conversations.

Dhowan Sunil and Anil Bhatia

Stuart McFarlane, Brian Lovell and Rod Nairn

Social distancing was observed in the large banquet hall

62

January 2022

thedcn.com.au

Ian Ackerman

IF THERE’S ONE THING THE AUSTRALIAN MARITIME

Paul Damkjaer and Paul Golland

Deniz True

Patrick Chan

Melwyn Noronha and Scott Henderson

Stephen Westfield and Jeannine Drummond

Mission to Seafarers

MISSION TO SEAFARERS’ CHRISTMAS THANKSGIVING The Mission to Seafarers’ Christmas Thanksgiving was held on Saturday 11 December at St Anne’s Anglican Church in Ryde.

More than 50 guests gathered to celebrate the achievements of the Mission, and its tireless volunteers and supporters, in what has been another challenging year for seafarers.

Reverend Un Tay gave a presentation of the year’s highlights and spoke of the importance of boarding ships over the past year to offer pastoral care when no seafarers have been able to disembark at our ports.

CSL and NSW Ports, both present on the day, showed their generous support of the Mission’s work and presented cheques. The event was attended by supporters from all fields – from shipping lines, ports, and port authorities, to the Mission’s own knitting group, some of whom continued to knit beanies and scarves as the proceedings took place.

Rev Tay invited attendees to offer their own words of wisdom and stories related to seafarers and – despite not being able to join together and sing the usual festive carols this year – guests enjoyed listening to some beautiful music and wished each other a merry Christmas – while hoping for positive things to come in 2022.

thedcn.com.au

A gathering to celebrate the year, and the Mission

January 2022

63

MISSION TO SEAFARERS

Results of the latest Seafarers Happiness Index show greater communication between seafarers and their employers

Happy at sea?

The Seafarers Happiness Index is an important window into the thoughts and feelings of the world’s seafarers, Alison Evans of Mission to Seafarers writes

64

January 2022

anger, frustration, stress, annoyance and pain – such that seafarers are considering if a career at sea is for them.

A growing number of respondents stated that they would be completing their trip and not coming back or are searching for different work. Some are seeking roles within maritime, but many are just looking for a way to get out.

As well as the challenges, the report highlights improvements, particularly noting the flow of communication between companies ashore and ships. There were clear indications in this reporting period that companies were being more supportive and communicative – an important and positive change. In past surveys, seafarers felt that employers were wary about being open and transparent, especially about crew changes. The result was that when problems transpired, crews felt caught out and disappointed. Seafarers praised owners, operators and managers that treated them like adults and engaged with them on key issues.

Gaining an insight into seafarers’ lives and exploring their feelings about key facets of life at sea can afford shipping companies extremely valuable insights.

This offers the chance to learn from the mistakes of others, meaning employers can see where things are going wrong and what changes are needed.

MTS VACCINATIONS UPDATE In our November 2021 article, we highlighted the emerging partnership between industry, the Mission and NSW Health, which resulted in seafarers in NSW receiving vaccinations.

There are encouraging signs from South Australia too, as Lay Chaplain Ian Pole reports that the crew of ICS Silver Lining have received their first vaccine dose. The vessel normally trades between Port Pirie and Tasmania, but the crew has not been permitted ashore since the pandemic hit.

“I’m grateful for the work done

by Port Pirie Tugboat Master Nev Reid who managed to get a question asked by Geoff Brock MP in state parliament about the vaccination of the crew. I’m also thankful for the support of the Premier and SA Health,” Mr Pole said.

The Mission recognises that collaboration is key in ensuring seafarers are vaccinated. We are pleased to support the vaccination program and to acknowledge seafarers as essential workers.

We continue our call to governments to roll out vaccinations nationally to the people who keep our economy going: seafarers.

thedcn.com.au

Images supplied

HOW CAN WE GAUGE THE THOUGHTS and feelings that seafarers have about their lives at sea? How do we identify the good and bad aspects of seafaring to build a case for change? How can we assess the impact of the pandemic on seafarers?

The answer lies in the Seafarers Happiness Index. Launched in 2015 by the Mission to Seafarers, the 10-question survey covers mental health, physical wellbeing, general working life and family contact, with seafarers scoring each question out of 10.

This survey is analysed, and a snapshot report is published on a quarterly basis. This allows the Mission to compare how things have changed, highlight any particular areas of seafarers’ lives that have improved or worsened and provide an insight to the shipping industry on what changes appear to have had a positive impact on the lives of seafarers globally as well as regionally.

The latest report, for 3Q 2021, was a special edition, titled In the shadow of a pandemic. The results showed an overall average score of 6.59 out of 10. This was up on the previous reporting period score of 5.99, an all-time low for the index. While there was some improvement in seafarer happiness, serious and fundamental issues persisted – particularly related to leave.

Whether it is crew change issues or the inability to access any shore leave, there is

THE DCN’S 130TH ANNIVERSARY EDITION This year, DCN has been published for 130 years and we’re planning a special celebratory edition in February.

DCN started life back in 1891 as the Daily Commercial News. Since then, it has been published throughout two world wars and two global pandemics. It has seen the federation of Australia and the end of the steam era.

Our special 130 anniversary edition will include many pages of special content looking back on the past 13 decades of Australian shipping and maritime logistics.

Our coverage will feature insight and stories spanning these those long years. We will feature writing from throughout our history, highlighting the big events in Australian shipping.

This special coverage will also feature guest contributors who might be recognised by long-time readers of the publication.

For information on advertising packages Contact Lindsay Reed +61 (0) 431 956 645 lindsay.reed@thedcn.com.au

The grill Ray Lee, founder of port advisory service Portside, speaks to DCN about business, “cutting down trees” and the unchanging qualities of leadership

Portside offers a wide range of services, is there anything you won’t take on?

Great question, some of the contracts Portside has undertaken over the years would be deemed high-risk by many companies. From my perspective, we consider the risk very seriously; that said the more challenging the context, the greater the sense of fulfillment. Portside has worked in crisis situations such as the aftermath of hurricane Mekunu, which devastated the port of Salalah, Oman in 2018, jointly provided anti-piracy support for shipping lines off Somalia, done aerial assessments of ports post-Gulf War and operational support in Djibouti and Pakistan.

What was your first job and how did you get it?

My first job was as a paper boy, followed by a bumper bar repairer in Bankstown.

I was paid 2 shillings to deliver the papers and $8 for a 12-hour day repairing bumpers at the factory. A fellow paper boy helped me get that job, and I think that

66

January 2022

someone that didn’t like me that much got me the factory job.

What was your first job in the maritime industry, and did you enjoy it?

I started as a casual clerk at STL Chullora in 1974 and later became “multi skilled” as a stevedore in “the bin” in Sydney. The bin was a labour hire company essentially run by the Waterside Workers Federation.

From the bin we were dispatched to companies like STL, Union Company, ConAust, Liner Services, Freightbases and of course Patricks and P&O. Most of these do not exist today. It was tough work and often unreliable but looking back it was the perfect start as it gave me an excellent grounding in all types of port operations, including bulk and container terminals.

Have you had a plan for your career, or has it just evolved without much planning?

When I look back, I did not have a specific career plan. I never imagined when I started as a wharfie, I would end up managing some of the same ports that I had worked at as a stevedore/clerk and then progress to being COO (director of operations) for DPWA, Australia’s largest port operator at the time. Each time an opportunity was offered to me, I had the inner belief that I could do it, but I rarely saw more than one level ahead.

Was education or formal training a key part of your success in the industry?

This is a question that I often discuss with others within the profession. I did not have any formal training in maritime operations until I was 45, when I completed a Diploma at the AMC. By that time, I was already general

manager of Patrick Port Botany. I believe the knowledge I needed to run a port was gained through working my way up the ladder.

Starting at the very bottom is a privilege few educated managers have now. I am certainly not against formal education, but experience often trumps theoretical knowledge. There is a good African saying I picked up in the Republic of Congo: “you learn to cut down trees by cutting down trees”.

How do you think things would be different if you were starting out in the industry today?

Technology is a game-changer in ports today. Much of my career has been about change management to enable labour reliant systems to transform into semiautomated or automated processes. This has involved a great deal of industrial relations negotiations. I have had to learn over time how to effectively integrate smart technology into port operations, but this should be almost intuitive for those starting now. The one key skill in effective port management however will never change – the ability to lead with strength and compassion.

What do you like doing outside of work?

I have a real passion for mountains. In 2013, I climbed Mount Kilimanjaro and someday I would like to hike to base camp Everest. I hike or walk every day I can.

I travelled a lot before COVID for work and pleasure, but since Australian travel regulations tightened due to the pandemic, I have enjoyed travelling inside my own state in eastern Australia. Lastly, I collect vintage surfboards. I am beginning to run out of wall-space to hang them, but I find them hard to resist.

thedcn.com.au

Image supplied

Can you explain the moment you decided to start Portside Group and where the inspiration came from?

I established Portside Solutions in 2007, Portside International (Singapore) and Portside Group in 2017 after recognising that there were few companies in the marketplace able to provide the broad spectrum of services that ports require.

Having supplied services for port operators, port owners and port users, including governments, I had the advantage of understanding the needs of each stakeholder, which gave me the idea to establish a platform to combine these services in one place.

KEEP UP TO DATE With the latest industry news and insights by signing up for one our tailored subscription packages

Talk to James about a package to suit you… or your whole team!

James Hayman, james.hayman@thedcn.com.au or (02) 9126 9713

SUBSCRIBE NOW! INDUSTRY PACKAGE

Prices do not include GST

Monthly Magazine • Daily newswire email • Website access – shipping data and news content • Directory of Maritime & Logistics Services

Packages from $795

NEWS PACKAGE Monthly Magazine • Daily newswire email • Website access – news content only • Directory of Maritime & Logistics Services

Packages from $590

VESSEL ARRIVAL REPORTS Lists all vessels due to arrive at the major Australian ports of SYD, MEL, BRI, ADE, FRE, PKB. Listed by vessel name, IMO number and agent

Packages from $1150

CONTAINER REPORTS Lists containers imported into Sydney and Melbourne. Displays depots, availability and storage charge dates, ensuring you have the information to help avoid unnecessary charges.

Packages from $1500

From port to door your integrated logistics provider

Providing seamless inland logistic solutions for your fumigation requirements this Stink Bug season

dpworldlogistics.com.au