DCN Magazine May 2022

First published in 1891 May 2022

thedcn.com.au

The voice of Australian shipping & maritime logistics

Tugs

& towage

The evolving towage sector in Australia

26 A look at the breakbulk and project cargo market

42 DCN’s report on maritime logistics in SA

48 Being a modern harbour master in Australia

MAKING MARINE OPERATIONS SAFER AND MORE EFFICIENT, EVERY TIME, EVERYWHERE

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Contents

26

34 42

FEATURES

26 34 42 48

Breakbulk & project cargo

An analysis of the past 12 months in a singular sector

Tugs & towage

What is next for this diverse and essential part of the industry?

South Australia

The annual report on logistics in the state

48

Harbour masters

DCN spoke to harbour masters about keeping ports safe

COLUMNS 16 Analysis Aggression against commercial shipping in the Black Sea

18 Industry opinion FTA on stevedore charges

20 Women in maritime What it means to be an ally

22 Industry opinion IFCBAA on container detention fees and their effect on business

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24 Antarctic shipping The past summer has been busy in the Southern Ocean

56 Industry analytics Australia’s major export commodities: ups and downs

58 Trade law A rundown of recent trade pacts

60 Maritime history Problems with pilfering

62 Out & about A warm welcome to Sydney’s first cruise visit in two years

64 Mission to seafarers A look at the history of the Newcastle mission, as well as activities at Thevenard

66 The grill DCN talks to Andy Perry about pirates, mentorships and more

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EDITORIAL

Lyttelton Port of Christchurch was the site of a fatal workplace accident in April

ISSUE NUMBER 1262

Publisher Lloyd O’Harte lloyd.oharte@thedcn.com.au Editor Ian Ackerman ian.ackerman@thedcn.com.au Journalist Abby Williams abby.williams@thedcn.com.au Creative Director Lee McLachlan Production Manager Grant Lopez grant.lopez@thedcn.com.au

Over the past weeks, there have been too many stories about workplace deaths in the pages of DCN. First, there was a young stevedore at Ports of Auckland in New Zealand who died while working on a containership berthed there. Then, a worker at a Sydney container yard died in a forklift accident, and then a port worker was killed at Lyttelton Port of Christchurch on a berthed ship while it was loading coal.

While the circumstances in these three incidents are different and there are undoubtedly various factors that led to the three deaths, the fact remains that nobody should die at work. Nobody should say goodbye to their family and go off for a day at work never to return.

The relevant authorities are conducting investigations into the three deaths. It is incumbent on the investigators to find out what caused these accidents, and it is of the utmost importance that the companies that run these workplaces take the investigations’ findings onboard and ensure such accidents never happen again.

And it is heartening to see that the Maritime Union of New Zealand and other Kiwi unions are calling for national stevedoring safety standards. I hope these standards are put in place and they prevent further deaths on the waterfront.

Everyone deserves to come home from work safe and alive.

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:

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May 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 Ian Ackerman

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Alistair McLellan ; David Sexton

From the editor

Electronic Services Linda Saleh

News in brief Full details at thedcn.com.au

Port of Melbourne

APG Melbourne pilotage services halted on launch safety concerns Australian Pilotage Group’s pilot transfer services were suspended after concerns about safety and qualifications were raised.

An Australian Maritime Safety Authority spokesperson told DCN AMSA received a report from Ports Victoria on 22 March regarding the use of unqualified masters on APG pilot vessels.

“AMSA investigated and found the pilot vessel masters were certificated as required under the AMSA-administered National Law for Domestic Commercial Vessels.

Responsibility for regulation of pilotage providers in Victoria, including local waters qualifications and licencing, lies with Transport Safety Victoria,” they said.

They went on to say: “AMSA was made aware of claims of fatigue and has sought more information from the complainants”.

In a letter to customers seen by DCN, dated 28 March, APG general manager David McDonald said the company “continues to work collaboratively and proactively with Transport Safety Victoria to finalise the agreed pathway for return to marine pilot transfer operations and therefore marine pilotage in the ports of Geelong and Melbourne”.

The letter said APG had provided TSV with “all the required documents

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May 2022

in relation to marine pilot transfer operations”. These included training plans and a safety management system for pilot launch operations. APG said these had been independently audited and verified under the ISO and ISPO processes.

TSV and APG, and its parent company Auriga, did not respond to requests for comment from DCN. Port Phillip Sea Pilots, the other provider of pilotage services in the area, said they service about 65% of ship movements requiring pilots in the area, and it has tailored its workforce to meet this demand.

In an open letter to its customers, PPSP said following the suspension of APG’s services, the harbour masters consulted with them on ways to keep ships moving.

“It was made very clear to us we were under no obligation to begin to service vessels contracted to APG (Auriga), however PPSP management made an ‘in good faith’ decision to attempt to service all vessels requiring pilotage services in both ports,” PPSP said in the letter.

“This has been and continues to be a challenging logistical exercise with our workload suddenly increasing by 35 percent.

We are determined to continue to deliver a safe and efficient pilotage service.”

A man died after being struck by a reversing forklift at a container yard in Banksmeadow, Sydney, on 21 April.

NSW Police said in a statement the man, believed to be in his 50s, suffered serious injuries as a result of the workplace accident.

NSW Ambulance has confirmed to DCN that paramedics responded to reports of the incident just before 1930 on the night of 21 April.

It was confirmed four paramedic crews, including road crews and an aeromedical crew, were called to a warehouse at a container yard on Coal Pier Road in Banksmeadow.

Paramedics treated the man at the scene before transporting him to St George Hospital in critical condition.

“Despite the best efforts of emergency staff, the man died in hospital,” an NSW Police statement said.

“Officers attached to Eastern Beaches Police Area Command attended and established a crime scene and commenced an investigation into the incident,” it said.

According to a customer update seen by DCN, ANJ Container Services – which runs a container yard on Coal Pier Road – temporarily suspended operations on the evening of 21 April.

The update said operations would recommence on Saturday 23 April.

Police said Safework NSW have commenced an investigation into the incident, and that a report will be prepared for the coroner.

ANJ Container Services did not respond to a request for comment.

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MAN DIES FOLLOWING ACCIDENT AT SYDNEY CONTAINER YARD

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NEWS IN BRIEF

Port of Geelong

Bill spells out reforms for Victorian ports Recently introduced legislation in Victoria is to embed Ports Victoria into legislation, adapt the body’s charter, and give the state’s harbour masters clear responsibility and powers to ensure navigational safety.

The Port Reforms and Other Matters Bill forms the state government’s response to the Independent Review of the Victorian Ports System. In August last year, the government said it supported all 63 recommendations handed down in the review.

The government has already acted on several of the recommendations, including establishing Ports Victoria by amalgamating the Victorian Regional Channels Authority and the Victorian Ports Corporation (Melbourne).

State minister for ports and freight Melissa Horne said the changes in the new bill will make Victoria’s port system more efficient, adaptable and ready to support growth and recovery.

“With freight volumes expected to more than double over the next 30 years, the safe

and efficient operation of our ports is vital to Victoria’s economic growth and this bill is another significant step to improving the operation of our ports,” she said.

In her speech for the second reading of the bill, Ms Horne said: “The bill will embed the role and function of Ports Victoria in primary legislation and provide it with the tools it needs to implement improved co-ordination, resilience and agility in relation to the safe provision of essential port services.”

In addition to embedding Ports Victoria in legislation, the bill will change the organisation’s charter to promote and facilitate trade, undertake operational activities, and provide technical and consultancy services concerning the whole of the Victorian ports system.

The bill aims to further improve the safety of essential port services such as pilotage and towage by giving harbour masters clear responsibility and powers to ensure navigational safety in their ports.

Presently, Transport Safety Victoria (TSV) is responsible for licensing individual marine pilots and registering pilotage services providers. The agency will retain these responsibilities, but registration must follow the issue of a licence by Ports Victoria.

In her speech to the Victorian Parliament, Ms Horne said: “The issue of a licence by Ports Victoria effectively certifies the applicant as demonstrating to Ports Victoria that the applicant has sufficient knowledge, skills and expertise in relation to Victorian port navigation systems and harbour master directions etc; and that it has sufficient processes and procedures in place to instil that knowledge and expertise in the pilots it engages, so that it can provide pilotage services safely in port waters.”

Providers of pilotage services who were registered before the provisions commence will be considered licenced, and the new licensing scheme will have no immediate impact on existing operators.

A third pilotage provider for the Melbourne/Geelong pilotage area will have to not only gain the approval of TSV, but also a licence from Ports Victoria if they enter the market after the bill comes into effect.

Ms Horne said in her speech that while Victorian ports are safely managed, there are some oversight arrangements that can be unclear across multiple governance body. The review recommended targeted reforms to give Ports Victoria a specific role overseeing the operational performance of harbour masters.

The announcement of a $1.5-billion investment in port infrastructure in the Northern Territory has been received with concern for the health of the surrounding community.

The investment was outlined in the 2022-23 Federal Budget, delivered on 30 March, as part of a $7.1-billion investment pipeline targeting regional industries.

But an article published by the Australian Associated Press suggested the gas, hydrogen, and minerals processing and export facility that is proposed to be built with the funds has raised concerns for the community.

According to the AAP, the proposed development also includes a petrochemicals plant for plastic, pesticide, and fertiliser production.

A risk assessment reportedly outlined issues such as deterioration of air, soil, and water quality and adverse impacts on threatened animal species and sensitive vegetation.

The AAP said the report highlighted potential damage to the seabed and marine ecosystems during dredging, infrastructure construction and shipping operations.

Indigenous sacred sites may also be impacted during dredging, shipping and industrial operations.

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May 2022

SeaRoad; Qube; EA Given;

$1.5-billion NT investment sparks concerns

Darwin

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TOTAL PRIZ E POOL OF

$25,000 TO BE AWA R

DE D

Maritime Art Prize returns in 2022 The Maritime Art Prize & Exhibition was established in 2002 and is Australia’s leading maritime art prize promoting excellence in maritime and seafaring subjects in art. The annual event is a major fundraising initiative of the Mission to Seafarers Victoria (MtSV).

We are celebrating the prize’s 20th anniversary this year.

Australia relies on shipping and seafarers to connect to the world and bring goods to our homes for the economy to thrive, and for the health of our island nation. From the coffee we drink to the cars we drive, from the clothes we wear to our mobile phones and computers – if it was made overseas, it likely arrived by ship.

MtSV provides welfare services to support the tireless work and hardships faced by those seafarers.

To continue to support their physical and mental wellbeing – especially during the global coronavirus pandemic when there has been limited shore leave in the Port of Melbourne – we need funds to run our programs.

ENTRIES OPEN: 1 May to 31 August 2022 OPENING NIGHT: Thursday 29 September EXHIBITION OPEN: Friday 30 September to Sunday 16 October Previous prize winners (from top): Orlando Durades Valdor Get Lost to Find Yourself; Mark Seabrook The Catch (1938); 2021 Winner: Laurel Foenander Lest we Forget; 2020 Winner: Rodney Forbes A Submariner Dreams of Home; 2020 Best Traditional: John Woodland Tooronga and Changte; and top right, 2021 Best Traditional: Debra Marshall Sea Forrest

For more information on the prize or to enquire about sponsorship opportunities, please contact us at artprize@missiontoseafarers.com.au

MISSION TO SEAFARERS VICTORIA (MTSV) 717 Flinders St, Docklands, VIC 3008 +61 3 9629 7083

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NEWS IN BRIEF

STEVEDORE KILLED IN AUCKLAND ACCIDENT

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May 2022

The smuggled drugs were hidden inside machinery

Freight forwarder charged for facilitating meth import A freight forwarder from Sydney has been arrested and charged over his alleged role in a plan to import 100 kilograms of meth into Australia.

Police alleged the man used his position at a freight forwarding company to facilitate the importation from Canada.

The Canadian Border Service Authority allegedly found the drug shipment inside a commercial dough mixer in 2021.

Royal Canadian Mounted Police seized the shipment and replaced the illicit drugs with a harmless substance before forwarding the consignment to New South Wales.

AFP officers organised for the consignment to be delivered as planned to a property in Sydney in October last year.

The 39-year-old freight forwarding worker is the third Sydney man to be charged in a joint Australian Federal Police and Australian Border Force investigation into a transnational drug trafficking syndicate.

Operation Dagger was launched by Taskforce Vanguard, comprising the AFP and ABF, at the time the methamphetamine shipment was seized.

The investigation also resulted in the arrest of a 37-year-old Punchbowl man who Police will allege organised the importation.

He was charged with attempting to import and possess a commercial quantity of methamphetamine and is due in Sydney Central Local Court on 13 April.

One tonne of methylamine, a substance used to manufacture methamphetamine and MDMA, was also seized in the investigation.

A 28-year-old Liverpool man was arrested and charged with providing material assistance to a criminal group. He is due to face Campbelltown Local Court on 20 April.

The freight forwarding worker was then arrested in Beercroft on 30 March following further investigations. He is next due to face Hornsby Local Court on 13 April.

ABF Inspector Investigations Tony Wheatley said detecting and disrupting criminal activity within the supply chain is a key operational priority for the ABF. “The ABF is committed to working with our partner agencies both in Australia and internationally to stop criminal groups who attempt to use positions of trust to circumvent border controls,” he said.

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Patjo; AFP

A stevedore was killed on 19 April at the Ports of Auckland while working the containership Capitaine Tasman.

Ports of Auckland in a statement confirmed there was a “serious incident” involving a worker employed by stevedoring company Wallace Investments.

“This is tragic news and a shock to us all,” POAL said.

“Our deepest sympathy goes out to the family, friends and colleagues of the person involved.”

Maritime Union of New Zealand national secretary Craig Harrison said the death of an Auckland port worker is a tragedy that will be devastating for family and workmates.

MUNZ identified the worker who was killed as 26-year-old Atiroa Tuaiti.

Mr Harrison said the tragedy reinforces the dangers faced by port workers everyday throughout New Zealand.

He said MUNZ wants a national inquiry into port safety following a number of deaths and injuries in New Zealand ports in recent years.

This is the fourth fatal incident involving Port of Auckland since 2017. In 2017, a swimmer was struck and killed by a pilot boat; in 2018, a worker was killed in a straddle-carrier accident; and in 2020, a worker was crushed by a container.

After these incidents, POAL commissioned a safety review.

The report from the review was damning, identifying a need for an increased focus on safety from senior management and leaders. POAL CEO Tony Gibson stepped down shortly after the report’s findings were released.

ITF president and ITF Dockers’ Section chair Paddy Crumlin today expressed condolences on behalf of the global union federation and its hundreds of dockers’ affiliates, to the family and workmates of a Maritime Union of New Zealand member who was killed working at the Ports of Auckland.

“This is not the first death in recent years to have taken place at the Ports of Auckland,” Mr Crumlin said.

“It is not good for any port or national industry to develop a reputation as an unsafe place to send your loved ones to work, wondering if they will come home at the end of their shift. For this family, their loved one didn’t come home. No family should have to go through that.”

Mr Crumlin said any workplace death is devastating and especially in a close workplace community like stevedoring.

“Our hearts go out to those who will be mourning today, and we affirm our solidarity to support them in getting the answers they deserve,” Mr Crumlin said.

Dedicated to the Challenge Exclusive Australian agents for Chipolbrok & Hongfa Shipping Market leader in break-bulk, project and steel shipping

NEWS IN BRIEF

MTS meets Princess Anne at Government House Sydney Mission to Seafarers met with Princess Anne, the charity’s president, at Government House in April during her recent tour.

Her Royal Highness arrived in Sydney to open the Royal Easter Show. At a garden party the following day, Mission to Seafarers was among a handful of organisations invited to meet her.

MTS Sydney CEO Reverend Un Tay told DCN that nine people from the charity attended the event, including regional director Reverend Canon Garry Dodd; liaison bishop John Stead; and representatives from ports in Newcastle, Sydney, and Port Kembla.

We were invited because Her Highness is the president of Mission to Seafarers International, and our patron is her mother, Her Majesty the Queen,” Reverend Tay said.

According to MTS’s website, Princess Anne is actively engaged with the charity’s work to support seafarers and their families around the world.

She attends functions as MTS’s most highly esteemed ambassador and delivers keynote speeches on maritime subjects.

Reverend Tay said the princess asked for an update on the mission’s recent work.

“We shared with her some of the things we’ve been doing during COVID-19, like providing vaccinations for at least 2000 seafarers,” he said.

MTS representatives meet Princess Anne

Bunkering with sustainable biofuel

ANL completes first local containership biofuel trial ANL has carried out what it says is the first biofuel trial on a containership in Oceania.

The trial, on ANL’s AAX1 service, was a 42-day rotation, commencing in Brisbane, travelling via South East Asia and then on to Australian ports.

ANL said the trial voyage used a B20 biofuel blend with feedstock supplied by Queensland-based EcoTech. BP Marine and Port of Brisbane supplied and bunkered the blended fuel.

The Queensland government supported the trial through its Biofutures 10-Year Roadmap and Action Plan.

ANL said Woolworths Group had been a key partner on the biofuel trial. Woolworths Group works with ANL through its supply chain business, Primary Connect, to bring quality household products to Australia and deliver Australian products like breakfast foods, cooking products and snacks to Asia under a range of Woolworths brands.

ANL managing director Shane Walden said the trial voyage is a crucial step in the company’s journey to netzero carbon and the industry’s evolution to a cleaner and more sustainable way of working.

“We’re very grateful to our longstanding client Woolworths Group as our key partner on the trial,” Mr Walden said.

Queensland Deputy Premier and minister for state development Steven Miles welcomed the ship to the Port of Brisbane.

“Queensland has the potential to become a leading biofuel refuelling station in the western Pacific,” he said.

INDUSTRY EVENTS 2022

EVENT

10-12 May

Indo Pacific 2022 International Maritime Exposition

International Convention Centre, Sydney

20 May

IFCBAA 2022 National Conference

Surfers Paradise JW Marriot Resort & Spa, Gold Coast

25 May

Australian Logistics Council Forum 2022

Sydney

Shipping Australia Parliamentary Luncheon

NSW Parliament House

Road Freight NSW Awards and Conference day

Waterview, Bicentennial Park, Sydney

30-31 Aug

Australian Peak Shippers Association conference and AGM

Wagga Wagga

30 Aug - 1 Sep

Ports Australia conference

Brisbane

7-9 Sep

Australian Cruise Association Annual Conference

Ville Resort-Casino, Townsville

Rev Un Tay; ANL

26 May 6 Apr

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

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May 2022

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ANALYSIS

Outside Odesa during HRAS investigation of war crimes and human rights abuses, March 2022

Human Rights at Sea head of research Dr Elizabeth Mavropoulou, lecturer of international law at University of Westminster and Leïla Choukroune, professor of international law at University of Portsmouth, explore the legally complex environment seafarers now face, and their vulnerability to war crimes

THE RUSSIAN INVASION OF Ukraine is sending shockwaves around the world with record numbers of forced displacement, civilian casualties and suspicions of egregious war crimes, but what has been less visible to the public’s eyes is the continuous impact of the conflict on seafarers and the global seaborne trade.

Whilst the fate of seafarers stranded at sea had been highlighted during the COVID pandemic, seafarers have not yet been given the necessary media attention in the context of the Ukraine war. Ninety per cent of world trade is conducted via maritime or river transportation and the seafarers operating these ships are essential to our daily lives. Yet again, their destinies are shaken by a new global crisis with possibly long months, if not years, in an ocean of apparent lawlessness.

NO EASY INTERNATIONAL RESPONSE A month into the Russia-Ukraine war, seafarers have been at the receiving end of a humanitarian crisis. In the early days

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May 2022

of the conflict, concerns were first raised for the salaries of Russian seafarers. With Russian sanctions hitting the SWIFT banking system, shipping companies did not know how to pay their Russian seafaring workforce (accounting for 10% of the maritime population).

The seafarers who found themselves in Ukrainian territory then tried to flee like the rest of the population. Others, in Ukrainian ports, were eventually repatriated with the help of their embassies and shipowners. In March, the International Maritime Organization estimated that approximately 2000 seafarers of various nationalities remained stranded on board 140 ships, unable to leave the Black Sea and the Sea of Azov, effectively trapped between blockades and sea mines.

In-country NGO visits in Odesa in March confirmed the concern that provisions on board those vessels are running low in increasing numbers of cases with lack of drinking water and medical supplies.

thedcn.com.au

Human Rights at Sea

Seafarers and global seaborne trade under attack

The seafarers operating ... ships are essential to our daily lives. Yet again, their destinies are shaken by a new global crisis with possibly long months, if not years, in an ocean of apparent lawlessness.

In response to this humanitarian crisis, the IMO decided, as a provisional and urgent measure, to work with Russia and Ukraine and the relevant littoral states to establish a blue safe maritime corridor to allow the evacuation of seafarers and ships. Reported mines in the Black Sea complicated the implementation of such solution as they would need to be neutralised first, an operation which could take months of negotiation.

In the days that followed, as major Ukrainian ports came under Russian attack, merchant ships became the subject of indiscriminate attacks. A Bangladeshi seafarer died of a missile strike on a Bangladeshi-flagged bulk carrier, and a crew member had to seek medical help following the shelling of a Dominicanflagged cargo vessel that eventually sank.

At the time of writing, the number of seafarers stranded in Ukraine’s ports has, according to the IMO and the International Transport Workers’ Federation, dropped down to an estimated 500 seafarers from the initial figure of 2000 reported in March. Concerns over the security of those seafarers remain as do the reported attacks to date on merchant fleet and crew.

The complexities of the situation seafarers have found themselves in since the beginning of the war, the multiplicity of legal actors (the flag state, the nationality of the seafarer, the country of the port where the ship might have been left, etcetera) and the existence of an armed conflict demonstrates how various international legal regimes interplay to protect seafarers and merchant ships.

A COMPLEX LEGAL ENVIRONMENT The International Labour Organization has adopted 70 international instruments (including 41 conventions and the related recommendations) to protect seafarers’ status. The ILO instruments address all aspects of seafarers’ lives from working hours to health, pay, leave, social protection, pension, safety, repatriation, identity documents and border control.

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Importantly, in 2006, the Maritime Labour Convention was adopted by the General Conference of the ILO with a view of revising and consolidating the ILO’s 37 existing conventions and recommendations to create a single coherent instrument stressing the global nature of the shipping industry. It is now the reference instrument for seafarers.

However, it remains extremely challenging for seafarers to implement their rights as the question of the “competent authority” still reveals complex issues (for example, owner of the ship, management, flag, territorial waters, port, labour contract and nationality of the seafarer).

In May 2021, against the backdrop of the COVID-19 global pandemic, the ILO launched voluntary guidelines to protect seafarers’ human rights. The Human Rights Due Diligence Tool is a joint initiative of the UN Global Compact, the Office of the High Commissioner for Human Rights, the ILO and the IMO based on very alarming reports of the labour conditions endured by seafarers.

According to the United Nations, in May 2021, over 300,000 forgotten seafarers were stranded at sea because they had been prevented from returning home due to government restrictions prohibiting them from going ashore. Some of them had been working at sea for over 17 months, despite the MLC rule capping the work time limit at 11 months.

INVOKING INTERNATIONAL HUMANITARIAN LAW In the Russia-Ukraine context, the existence of the armed conflict triggers the application of international humanitarian law (IHL).

Russian warships have reportedly blocked all ingress and egress into the major ports of the Sea of Azov and the Black Sea, effectively imposing a naval blockade. This is because the law defines a blockade as a question of fact, irrespective of whether the imposing navy, in this case Russia, has so declared.

In addition, there is increasing evidence of serious violations of IHL rules in relation to targeting. Under the law of armed conflict, civilians and civilian objects are prohibited from targeting under the principle of distinction. Any deliberate targeting or the indiscriminate targeting of civilians and civilian objects constitutes a war crime.

The laws of naval warfare explicitly prohibit attacks against merchant vessels flying the flag of neutral to the war states.

The merchant ships at anchorage in those besieged ports are civilian objects by nature, location, purpose and use, and they make no contribution to military action that could justify their attack.

Even in light of the proportionality principle of targeting, where civilian casualties can be justified when there is a concrete and direct military advantage anticipated, it is highly unlikely that any attack against these ships and the crew would be justified.

The humanitarian crisis in Ukraine is further highlighting the vulnerability of seafarers in the global economic system while part and parcel of this system, commercial shipping and seaborne trade, is under attack too.

ON THE GROUND IN UKRAINE Human Rights at Sea recently travelled into Ukraine to gather evidence of war crimes and human rights abuses toward seafarers during the conflict.

HRAS chief executive officer David Hammond told DCN the small field-team was deployed from the UK with specialist support, and with the goal of ensuring ground truth was being checked and recorded.

“Our discreet fieldwork in Ukraine remains ongoing supporting collection of war crimes and human rights abuse evidence within the maritime context for onward submission to the competent authorities,” Mr Hammond said.

“On the ground and front-end investigation work is key to corroborating and exposing human rights abuses, the process around which cannot be underestimated in terms of its need, sensitivity or its complexity.”

May 2022

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INDUSTRY OPINION

Inflationary pressures fuelled by stevedore charges

A governmental response to container stevedore charges has been perceived as inadequate, Paul Zalai of FTA and APSA writes

GOVERNMENT RESPONSE The Australian Competition and Consumer Commission highlighted in its Container stevedoring monitoring report 2019-20 that aggregated stevedore landside and other revenue is significantly increasing. However, this quantum

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We have severe capacity constraints, record high freight rates, container detention penalties, depot congestion and shipping line surcharges. Meanwhile, our government ... are left scratching their heads as to why ... costs continue to spiral out of control. is largely being offset by a correlating reduction in quayside revenue.

This brings into question whether exporters and importers are paying duplicate landside stevedoring fees; once via high terminal handling charges administered by shipping lines, and twice via TACs and vehicle booking systems administered by shipping line contracted parties.

Australian supply chain participants are currently paying an additional $500 million per year direct to stevedores and empty container parks. These rapidly increasing costs have detrimental impacts on exporters and importers with downstream financial impacts on manufacturers, farmers and regional communities.

Freight & Trade Alliance and the Australian Peak Shippers Association wrote to state ministers in 2020 reiterating a position that stevedores and empty container parks should be forced to either absorb operating costs or pass these on to their commercial clients (the shipping lines). This outcome would give shipping lines the choice to absorb costs or pass these onto shippers through negotiated freight rates and associated charges.

Ministers at the Infrastructure and Transport Ministers meeting in November 2020 tasked the National Transport Commission (NTC) with leading reform and the development of voluntary national guidelines to apply to the introduction and increase stevedore infrastructure and access charges at Australia’s container ports.

VOLUNTARY ARRANGEMENTS Parallel to the NTC’s activity, the Victorian government set about their own program of reform over the last two years to address this and other port related operational matters through the establishment of the Voluntary Port Performance Model (VPPM). Under this model, stevedores are restricted to one annual TAC increase with prescribed notice periods giving industry an opportunity to question and challenge any variation.

On each occasion DP World, Victoria International Container Terminal and Patrick have announced TAC increases via the Port of Melbourne, prescriptive detail has been sought by FTA and APSA to ascertain whether increases are a measure to offset a further reduction in quayside rates to the stevedore’s commercial client

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Taras Vyshnya ; Jim Wilson

OWNERS AND SHAREHOLDERS of container stevedore operations have been handed a license to print money with the National Transport Commission.

It permits them to hold to ransom third party transport operators which have no influence over service or price.

Hutchison Ports has taken terminal access charges – which they refer to as infrastructure surcharge – to a new national high with their recent announcement of a $162.10 fee payable by transport operators for all containers received or delivered via their Brisbane terminal.

The approach is the result of stevedores reducing quayside revenue intake from their commercial client shipping lines and instead recovering costs from transport operators that have no influence on service or price.

Foreign owned shipping lines servicing our container trade are in the dominant position. Not only are they cashing in on importers and exporters with high freight rates, a spate of surcharges and unfair container detention penalties; they are also putting a squeeze on their contracted stevedores. These stevedores have resorted to terminal access charges (TACs) to remain commercially viable.

Paul Zalai, director, Freight & Trade Alliance; secretariat, Australian Peak Shippers Association

shipping lines or necessitated by other specific operational factors.

In the absence of any commercial ability to influence the quantum of the TAC and in line with the intent of the VPPM, FTA and APSA also requested a further detailed explanation for the increases including disclosure, supporting

information and data justifying the full cost structure of the total fees.

While constructive meetings were subsequently held between FTA, APSA and stevedore executives, follow-up correspondence did not provide the specific data requested. It instead provided a general commentary with a broad reference to activities and capital expenses.

The VPPM was never going to be the answer and we suggested as much when the idea was first mooted at a ministerial roundtable briefing. We have regularly reiterated this with extensive evidence supplied to the Victorian ports minister.

Stevedores were never going to give us the transparency requested, and why should they? All we want is for them to absorb operational costs or pass these on to their commercial clients through negotiated contractual arrangements.

FLAWED VICTORIAN MODEL TO BECOME A NATIONAL STANDARD On 31 March 2022 the NTC announced the national voluntary guidelines for applying landside stevedore infrastructure and access charges at Australia’s container ports.

Despite witnessing the failings of the VPPM, the NTC and Australia’s transport and infrastructure ministers have embraced the flawed model adopted by the Victorian government, setting a new standard for adoption by state governments nationally.

Escalation of such voluntary performance arrangements also poses the risk of giving tacit approval to this unwarranted cost recovery method on third parties.

This matter is not confined to stevedores. Empty container parks (and now LCL Depots) are also continuing to significantly increase their charges on transport operators who are understandably adding administration fees that are cascading down the supply chain.

On top of this, we have severe capacity constraints, record high freight rates, container detention penalties, depot congestion and shipping line surcharges. Meanwhile, our government representatives are left scratching their heads as to why supply chain costs continue to spiral out of control, fuelling inflationary pressures across our economy.

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May 2022

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WOMEN IN MARITIME

Supporting workplace minorities through allyship Becoming an ally to underrepresented groups in the workplace can transform the culture of the maritime industry, Jon Drummond writes

HELPING MARGINALISED COLLEAGUES I have found the first step in fostering allyship is to become a good listener.

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Often, those in workplace minorities feel they cannot speak up when tackling an issue, even when they have an idea or viewpoint that may benefit the team.

We can demonstrate allyship by ensuring these individuals are heard. It can be as simple as asking someone not to cut the marginalised person off if they are explaining their views, or discussing their ideas with them outside of the group setting to help nurture their confidence in presenting their ideas.

As allies we should also stand beside those we are supporting rather than in front of them. There is a difference between allyship and leadership. We should focus on treating our colleagues as equals and empowering them to walk beside us.

For those in leadership roles, this position requires respect and understanding. Someone of a different gender, culture, race, social or economic background may bring a different perspective into a situation that challenges the attitudes and beliefs of others.

To be a good ally means we need to accept differences and welcome the diversification of our own thinking. As Albert Einstein said, “we cannot solve our problems with the same thinking we used when we created them”.

ALLYSHIP THROUGH MENTORSHIP The Australian Maritime Mentoring Program, which is championed by the Australasian Marine Pilots Institute and the Company of Master Mariners, is a great example of being able to stand beside another person as an equal despite gaps in age and workplace experience.

Mentors are partnered with mentees based on each individual’s background and aspirations. I recall when I was a cadet I felt that a senior officer or pilot was so far above my level that I could not share my own experiences. I’ve found it rewarding

to reverse that trend by partnering with a cadet and a junior officer.

Talking to these mariners about their experiences at sea and the common challenges they face has been valuable in expanding my own knowledge base.

LEARNING FROM EXPERIENCE AND MISTAKES Finally, it is important to have the ability to reflect on situations, acknowledge mistakes and apologise for them. This may not be easy when dealing with a minority group in a work environment, but it significantly improves workplace culture and harmony between employees.

A simple example might be referring to females in the workplace as “girls”. Though a seemingly innocent mistake, repetition can irritate a colleague who is an equal but is referred to as a child. In these situations, an apology and a commitment to not making the mistake again can enhance people’s psychological safety at work.

Thinking back over my own career, I am encouraged by the progress of allyship in the workplace. I have found there are people who put effort into helping others from different backgrounds to grow and thrive in their careers. But at the same time, we have a long way to go.

Reflecting on experiences of feeling silenced, humiliated or unsupported can guide us toward helping others who feel the same way, positioning us as allies and creating a workplace culture in which everyone feels included.

Jon Drummond, Sydney marine pilot

Image supplied

THE INAUGURAL INTERNATIONAL Day for Women in Maritime will be held on 18 May this year to celebrate and raise the profile of women in the maritime industry. Even with so many allies for gender diversity across the sector, people are still acknowledging they are unaware of the behaviours, attitudes and biases that continue to exist in our workplaces.

These barriers are slowing progress toward greater representation of women in the industry, particularly in operational roles.

In December 2021, this column explored the concept of allyship. Ahead of this year’s International Day for Women in Maritime, it is timely to consider what it means to be an ally, not only to females working in a male-dominated environment, but to anyone who feels marginalised or excluded at work.

Throughout COVID-19, many workers reported feeling alienated, lonely or stressed due to a lack of interaction with others. As humans, we generally enjoy working with others and the sense of belonging it brings us, and it makes sense to embrace this in our workplaces. Though work is primarily a source of income, we also strive to find work environments that bring us a sense of fulfilment and belonging.

This sense of belonging dovetails into the idea of allyship. The term is best described as “a supportive association with another person or group”. In essence, it is supporting others in our workplaces to share the knowledge and experience required to participate as a valued team member.

Many organisations have adopted this concept as a core value and are reaping the benefits. Workplaces with a strong culture of allyship are reporting improved productivity, staff retention and the general happiness of employees.

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INDUSTRY OPINION

Empty costs IFCBAA’s Paul Damkjaer analyses the system of container demurrage and detention, which can add significant costs for shippers THE RECENT DECISION OF CERTAIN container shipping lines to reduce the free time available for import containers to be de-hired from 10 calendar days to seven calendar days will increase international trade costs in Australia for both importers and exporters.

Empty container detention is a cost applied by shipping lines for the late return of empty containers to a nominated container park. In the majority of cases the return period is 10 days from first day of availability at the container terminals. It’s important to note that some shipping lines start the detention clock from the date of vessel discharge, not first day of availability, which further reduces the free period.

IFCBAA’s position did not support this change of practice and the likely associated costs for the entire supply chain. In relation to this change the decision in COSCO Container Lines Co Ltd & Five Star Shipping Agency Company Pty Ltd v Unity International Cargo Pty Ltd in the New South Wales District Court in March 2012, whereby it was held that container detention fees charged by Cosco Shipping (Cosco) and its Australian agent, Five Star Shipping and Agency Company were enforceable as against a freight forwarding company is of note.

The court decision is pivotal to the contractual basis for detention fees.

WHO IS LIABLE? Shipping lines invoice such detention costs to the consignee as referenced on the bill of lading as per associated terms and

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conditions. As the ultimate consignee the importer or freight forwarder is responsible to pay these charges.

The importer is also responsible for returning the empty container(s), with interiors clean to the point or place designated by the shipping line, and within the time prescribed. Should a container not be returned within that time, the importer is liable for any detention, loss or expense that may arise.

ISSUES AFFECTING DETENTION With stevedores’ 24-six (and in some places and instances 24-seven) operations, the mismatch of operating hours has been exacerbated, as many importers and exporters limit their operations to receive and deliver containers during normal business hours. This mismatch of operating hours extends to the operating hours of empty container parks.

Costs associated with the delivery of a shipping container cease when the container is de-hired when it is empty. As most empty container parks only open 10 hours per day during normal working days (weekends and public holidays excluded), it is often impossible to de-hire the empty container on the same day that the unpack is completed.

Therefore, transport companies are forced to co-ordinate the staging of the importer’s empty container to meet these time constraints. Such staging incurs additional cartage, container lifts, yard storage fees and booking notification fees at some ECPs. Staging also absorbs

detention-free time that may be left after the unpack has been completed.

Further impacting on the available detention-free time are the additional complexities and delays in regulatory cargo release after cargo availability.

More specifically, these delays have been generated by increased Department of Agriculture, Water and Environment BMSB and khapra beetle biosecurity intervention, ongoing limitations in the Australian Border Force Integrated Cargo System, late targeted containers for ABF examination and an increase in containers selected by the ABF for x-ray and unpack requirements.

CALCULATION OF CHARGES It is important to note that Australia’s import container volumes far outweigh exports; hence the majority of de-hired empty containers sit idle in empty container parks. During this time the shipping lines pay fees to the empty container parks to store containers until they are relocated overseas.

While it is acknowledged that lines require an appropriate mechanism to manage empty containers, is the level of the charge appropriate to this requirement?

Charges should reflect the cost to the shipping line regarding storage and repositioning. IFCBAA has advocated lines apply a consistent rule of 10 working days from the last day of availability.

This would remove the effect of Sundays and public holidays on the calculation of turnaround time. Shipping lines currently charge detention daily (including weekends and holidays); however empty container parks are not open during these periods.

Industry would also benefit if there was an online portal that all industry participants could access to view container de-hire information (i.e. time, date, place that the container in question was de-hired and by whom). This would save hours of investigation in the verification of detention invoices.

Paul Damkjaer, CEO, IFCBAA

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Ian Ackerman; Image supplied

The costs of dealing with empty containers are rising for shippers

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ANTARCTIC SHIPPING

Nuyina and an Adélie penguin

A busy summer in the Australian Antarctic

THE SHIPPING SEASON FOR Antarctica is a few months in the middle of summer, with ships typically heading south from Hobart in mid-December and returning from their last voyage in March.

This year, the three ships delivered more than 2000 tonnes of cargo to all four Australian Antarctic stations, with 1200 tonnes of cargo returned to Australia. Also, the vessels delivered more than 2.7 million litres of Antarctic blend fuel.

An Australian Antarctic Division spokesperson told DCN that this past summer was a busy one for the AAD, and all three vessels used were untested in the Southern Ocean and Antarctica.

THE NEW NUYINA The AAD’s new vessel, RSV Nuyina, completed its maiden voyage this past season. “There’s little question the star of the season was the Nuyina,” the spokesperson said.

BigLift ship Happy Dragon off the coast of Antarctica

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Nuyina departed in December to deliver helicopters to Davis Station and to refuel Casey Station with 960,000 litres of Special Antarctic Blend diesel fuel.

“Science teams on board also mapped an underwater sea mount and deepsea canyon during the voyage,” the spokesperson said.

“It was great to see the unique wet well technology in action. This essentially draws sea water into the ship so krill and other species can be captured in perfect condition.

“Thousands of krill were collected on this voyage and brought back to labs in Hobart.”

The AAD spokesperson said Nuyina returned to Davis in February to retrieve helicopters, but the ship’s largest challenge during the voyage was the resupply of Macquarie Island.

“This was a significant year for Macquarie as in addition to the 100

tonnes of standard resupply cargo, we were delivering anther 350 tonnes to support works to modernise the station,” they said.

“This includes building materials, internal fixtures and tools. It’s a long way to the nearest hardware store so we have to make sure the team has everything they need for this year’s works program.”

The AAD spokesperson said because the Nuyina is new to the program, the AAD is taking a “crawl-walk-run” approach.

“Our focus this season was really achieving the key targets of refuelling and resupplying our stations as well as changing over expeditioners,” they said.

“Nuyina passed every test it faced and delivered a series of outstanding operational outcomes. This sets us up for the future and the commissioning process will continue for the next few years.

Nuyina has since departed Hobart for Singapore where it will go into dry dock for scheduled maintenance.”

THE CHARTERED SHIPS The Netherlands-flagged, 157-metre icestrengthened cargo ship Happy Dragon (chartered from BigLift Shipping) was the first ship to leave Hobart in December.

“It sailed to Casey research station where it unloaded roughly 1200 tonnes of cargo, the largest single cargo transfer in the history of our program,” the AAD spokesperson told DCN. “Half of this [cargo] was for a mobile station and sleds, which will be used for the

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Pete Harmsen/AAD; AAD; Barry Becker/AAD; Sachie Yasuda/AAD; Pete Harmsen/AAD

The Australian Antarctic Division saw a busy shipping season, with three vessels each completing two voyages to the frozen continent, Ian Ackerman writes

traverse to the Million Year Ice Core site 1300 kilometres away at Little Dome C.” Happy Dragon later returned to resupply Mawson research station in February.

“This was critical as Mawson had not been resupplied the year before due to thick sea ice preventing MPV Everest reaching Horseshoe Harbour [last year].

“Happy Dragon also travelled to Davis research station where it resupplied the station with dry cargo (e.g. spare parts, fresh and frozen food, plant and equipment, project and construction materials), before heading back to Hobart.

“Our third ship this season was the Aiviq, a powerful icebreaking vessel chartered from Edison Chouest Offshore.

It refuelled Davis and Mawson while also changing over expeditioners.”

Aiviq (Inupiaq [Alaskan Inuit] for walrus) is a 110-metre US-flagged icebreaking tug.

McGuire Maritime – a Hobart-based consultancy specialising in ship brokerage, education and port operations – was involved in chartering the vessels, the company’s principle consultant Chris McGuire said.

“We took part in the global search to find two vessels, Happy Dragon and Aiviq, to provide logistic support for Australia’s new icebreaker, RSV Nuyina, and freeing it up to focus on scientific research,” he said.

“We then managed both support ships on behalf of the Australian Antarctic Division for the 2021-22 Antarctic season.”

ANTARCTIC STEVEDORING When resupplying Antarctic stations, the vessels typically anchor nearby, with barges brining cargo to the wharf, and at Casey, the supplies need to be transported from the wharf several hundred metres away to the station itself.

The AAD spokesperson told DCN that weather is the number one challenge during resupply operations in Antarctica.

“This season, the crew of Happy Dragon had to wait to undertake resupply operations at Casey after sea ice was blown into Newcomb Bay preventing access to the wharf,” they said.

“On top of that, winds experienced at the peak of a blizzard at the station reached 134 knots. The only solution is to wait for conditions to ease, and for wind to blow sea ice back out of the bay.”

The spokesperson said safety is of paramount importance in the AAD’s operations.

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Happy Dragon at Casey station

“If it’s not safe, we don’t do it,” they said.

Last season sea ice stopped an AADchartered vessel, MPV Everest, from reaching Mawson’s Horseshoe Harbour.

“Helicopters embarked aboard the vessel then transported essential cargo via underslung loads one at a time from the ship which was approximately 90 nautical miles out at sea. This obviously placed limitations on what could be delivered,” the spokesperson said.

“In August of that year, with the support of the Australian Defence Force, a Royal Australian Air Force C-17A Globemaster III strategic airlift aircraft completed an air drop of essential supplies onto the sea ice near the station, a remarkable achievement given the time of year and the distances involved.”

And Macquarie Island presents its own unique challenges for resupply operations.

The sub-Antarctic island has no wharf and is notorious for its bad weather.

“To reach the station, amphibious LARCs (lighter, amphibious, resupply, cargo) have to be used,” the spokesperson said.

“They’re lowered off the ship into the sea and their decks are then filled with

A LARC and Nuyina at Macquarie Island

palletised cargo (they can’t accommodate standard shipping containers). They then travel a short distance across the open water and push through the surf, navigating rocks and kelp before reaching land and driving up the rocky beach.

“The other challenge we face on Macquarie Island is managing our operations around the abundant wildlife.

The island is home to 80,000 seals and 3.5 million sea birds. We have to ensure we do not disturb colonies or cause harm to any species.”

Nuyina and Happy Dragon at Casey

May 2022

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AAL

BREAKBULK & PROJECT CARGO

AAL Dampier discharging 85.3-metre, 240-tonne aluminium mega-yacht hull at Henderson, Australia

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HEAVYHEAVY TIMESTIMES The multi-purpose, breakbulk and project cargo sector is frequently in a singular situation compared to other sectors, with market forces pulling it in different directions. This moment of conflict and pandemic is no different, Ian Ackerman writes

T

he multi-purpose vessel sector is in a strange spot at the moment. While there is skyrocketing demand for space on these ships in part because of capacity constraints in the container sector, there is little new MPV tonnage coming online in the near future, due to the high demand for newbuild containerships. Add to that the disruption of war in Eastern Europe and the spectre of COVID-19 lockdowns in China, a complex, dynamic and not entirely positive picture emerges.

THE OUTLOOK According to logistics analyst firm Drewry, there is little, if any, upside in the near term for the MPV market.

In a discussion about the publication Multipurpose shipping forecaster & annual review 2022/23, Drewry senior analyst, multipurpose and breakbulk shipping Susan Oatway said at the end of 2021, there was cause to be “cautiously optimistic” about the global MPV market. However, global events over the first quarter of the calendar year 2022 shattered that optimism.

“It’s all to do really with the uncertainty in the global economic market at the moment,” she said.

“The conflict in Ukraine, the new COVID lockdowns in China – they have a multitude of ripple effects coming from them, the biggest being the change in expectations for the global economy.

We currently see little, if any, upside in our base case scenario.

That’s the biggest new trend we’re seeing this time around.”

While the future is cloudy, the sector has seen some relatively good times over the past 12 months. Drewry’s Multipurpose Time Charter Index, which tracks one-year period charter rates across several vessel types and sizes, in March was up 43% on March 2021 to US$11,70 per day. And the index in March 2022 was up 78% since March 2020.

“Russia’s invasion of Ukraine might not have a clear impact for the multi-purpose trades, except perhaps in the short-sea northern European market, but the impact on global confidence, rising commodity prices and the competing sectors has definitely caused the recent rate rise to falter,” Ms Oatway said.

Looking back over the past year, she said much of the recovery in the MPV market over 2021 is more to do with the supply-chain crunch in the competing sectors than it is with any significant cargo volume increases.

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BREAKBULK & PROJECT CARGO

The general shipping capacity crunch experienced in 2021 and continuing in 2022 will keep us on our toes for the foreseeable future.

Mauro Capano, BBC Chartering

“The MPV sector has benefitted in that desperate search for space, which has resulted in cargoes that were previously containerised moving back into breakbulk vessels,” she said.

“That effect is expected to weaken over the second half of 2022, and into 2023.”

Growth in effective demand for the MPV/heavylift fleet over 2021 reached nearly 7% in that year, compared to 2020.

“However, that was a bounce-back, and this is expected to slow as the supply-chain issues start to unwind over 2022,” Ms Oatway said.

“It’s expected to slow further over 2023 as the influx of new tonnage in the competing sectors starts to arrive into the market.”

She said the war in Ukraine has weakened confidence and dented Drewry’s demand forecast.

“That in turn will lead to an erosion in the MPV market share and therefore period rates,” Ms Oatway said.

“That said, we do expect rates to remain above pre-pandemic levels, when they start to settle in and around 2023.”

THE VIEW FROM AUSTRALIA Zooming into the market closer to home, MPV and heavy lift operators in Australia have seen similar bumps and bright spots in the market.

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BBC Chartering Australia managing director Mauro Capano said the MPV market of 2022 picked up where 2021 left off.

“The world still struggles to restock inventories, and at the same time deal with the continuing impact that COVID brings on the supply chain.

As most of the world moves into a phase of postCOVID with the freeing up of restrictions, more labour can be put to work in ports and terminals, trucking and the like which should improve the daily situation. However, a continued zero-COVID policy in China will ensure that at least one end of the supply chain will continue to experience challenges,” he said.

“How this will eventually change the origin of goods and resultant pricing/competitiveness of nonrestricted countries who chose to live with COVID rather than maintain a zero policy is yet to be seen – but we are starting to witness a surge in fabrication outside of China for the project cargoes.”

Mr Capano said BBC’s core business of project cargo has increased in line with increased global volumes.

“The mining sector maintains prominence in Australia, continuing to be backed with big investments in the Pilbara region. There are expansions and construction of new mines and considerably bigger volumes in 2021 compared to 2020,” Mr Capano said.

“The east coast of Australia was slightly quieter but with the long list of approved infrastructure projects under realisation, we have seen a huge increase and steady flow of steel commodity cargoes, construction equipment and transport cargoes such as wagons, trains et cetera.

“We expect 2022-23 to be exciting and fruitful with plenty of cargo opportunities. With new mining projects, refurbishment of machinery in mines, infrastructure projects and the upcoming Olympics

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BBC Chartering

BBC Rushmore at Port Kembla in March 2021

BREAKBULK & PROJECT CARGO

The rate increases and box and slot shortages are pushing many commodities out of containers and back into breakbulk.

Frank Mueller, general manager, AAL Australia

PROJECT SPOTLIGHT

in Brisbane in 2032, we should see a strong 2023 and beyond,” Mr Capano said.

He said in general BBC has seen a healthy and strong demand worldwide, particularly for the Asia outbound trade lanes, where the main drivers are renewable energy/windmill equipment segments.

“There is also still a high demand to carry containerised cargoes on MPP vessels (in shippers’ own containers) and we also see a number of cargoes/ commodities being unboxed to move as breakbulk instead of being containerised, especially metals and other unitised cargoes. Australia in this respect is no different than other trades in other parts of the globe,” Mr Capano said.

Meanwhile, AAL has also seen increased demand in cargo traditionally moved in containers, converted to breakbulk, according to AAL Australia general manager Frank Mueller.

“The rate increases and box and slot shortages are pushing many commodities out of containers and back into breakbulk. Especially, heavy goods seem to be shunted by container carriers, understandably so, as well as special containers or modified SOC,” Mr Mueller said.

Mr Mueller said looking at the current indicators like long-term time charter rates for container vessels worldwide, this looks like an ongoing phenomenon expected to last well into the future.

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“Additionally, ro-ro carriers seem to be struggling with carrying breakbulk, a market which they, as well as container lines, have been aggressively targeting in the last couple of years – portraying themselves as versatile as the traditional, conventional MPP carriers like AAL,” he said.

“In reality, situations like the present clearly demonstrate the vital importance of MPP heavy lift carriers in the global supply chain and how, when the chips are down, we remain consistent in our service ethics and dependability. We are trying to cater for the increased demand caused by other operators rejecting their clients’ cargo and concentrating on their core business, containers and vehicles.”

In Australia, Mr Mueller said the worldwide demand for tonnage can leave the trade short of options.

“But AAL is continuing to service the Australia market as we have done for over 25 years. When we say we are committed to a market, we mean it and do not leave our clients struggling for solutions,” he said.

“Are the freight rates higher than what they used to be? Yes, no question, but we are still upholding our regular services whilst others have left or changed their service offering in such a way that does not allow their customers to continue business. And our clients understand that service does come at a price and that our costs are also increasing every day.”

PORT CONGESTION The scourge of port congestion has dogged the maritime logistics industry over the past two years, and the MPV and heavy lift sector is no different. The sector has been dealing with significant congestion challenges – both in Australia and globally.

Mr Mueller confirmed that port congestion is currently a very big problem for the MPV sector, not only in Asia but also here in Australia.

AAL Shanghai unloading cargo for the Dulacca Wind Farm project

May 2022

The Dulacca Wind Farm is currently under construction in Queensland’s Western Downs region. The project comprises 43 wind turbines, with blades 80 metres long.

AAL general manager Frank Mueller said between February and July 2022, AAL is operating a series of shipments between China and Brisbane to transport heavy lift and project cargo components for the new 181-MW wind farm.

He said the project, when complete, is expected to generate enough clean energy to power approximately 124,000 homes in the region.

“Employed by multiple global logistics companies to manage the ocean transportation for some the wind farm’s largest components, AAL’s shipments have comprised 43 wind turbines (towers and blades), transformers and electrical cables – a total of close to 375,000 freight tonnes (FRT) of cargo,” Mr Mueller said.

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AAL

DULACCA WIND FARM

Pilbara Ports Authority

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IRON BRIDGE PROJECT In October, BBC Pearl became the first cargo vessel to berth at Lumsden Point. The voyage was to deliver cargo in support of the Iron Bridge Magnetite Project, which is a joint venture between Fortescue Metals group subsidiary FMG Magnetite and Formosa Steel IB. BBC Chartering Australia managing director Mauro Capano said the Iron Bridge project has had a big focus over the past year, with 20 sailings of the Amber class ships for FMG into Port Hedland.

“We treat all of our projects the same – be they individual lots as a part cargo or a full charter,” he said.

At the time the first vessel berthed, Pilbara Ports Authority CEO Roger Johnston said Lumsden Point is envisaged to become a multiuser facility and logistics hub that will alleviate the demand on existing cargo berths at the Port of Port Hedland.

“This will help support direct shipping services from Asia, the ongoing development of battery mineral mines, as well as providing opportunities for expanding agribusiness and proposed renewable energy projects in the Pilbara,” he said.

PROJECT SPOTLIGHT

“For years port authorities and port operators all over the world – also in Australia – have concentrated on making their ports fit for containers and ro-ro.

It is easy and clean; cargo operation is not impacted by weather, containers and cars can be loaded and discharged in hail, rain or sunshine. Port stays can be easily predicted, berthing windows assigned, port efficiency increased,” he said.

“The current situation clearly demonstrates not only is there, and always has been, cargo that cannot be carried by containers, but if the demand for un-containerised cargo increases, the previously glorified terminal infrastructure is showing its limits.”

Mr Mueller said for years, even decades, some Australian ports have neglected their infrastructure for conventional cargoes and this is now proving costly.

“As AAL, we have tried to absorb these additional costs – rather than pass them on to our customers – but we are now being forced to recover costs at least partially from our clients. Our service is also under mounting pressure, as we cannot discharge vessels per desired schedule and return them to Asia,” he said.

“We have been advised by port authorities in Australia that they cannot berth our vessels and that the best storage space in the port would be onboard our own vessels. So effectively in some Australian ports our expensive vessels are considered floating storage solutions. This might be a cost-effective solution for the ports, but not for those in the supply chain.”

Mr Mueller said the situation in North Asia, especially in China, due to COVID-19 is constantly changing.

“Nobody would have expected a workforce shortage in Chinese ports, but this is the reality today,” he said.

“Traditional breakbulk terminals have stopped handing containers to ensure that the breakbulk trade continues, and those terminals are not also blocked by queuing container vessels.”

He said port congestion is a real issue now, also for the MPV sector.

“The situation can change quickly and it is very unpredictable. Again, this is something that is difficult to include within our pricing models and we see a flow-on effect from these extra costs, unfortunately,” Mr Mueller said.

BBC’s Mr Capano echoed these concerns about port congestion.

“Port congestion has been a really difficult issue to navigate around for the past 12 to 18 months – in particular in Chinese ports. The zero-COVID policy and restricted access to vessels continues to frustrate,” he said.

“BBC Chartering’s China offices work tirelessly continuing to find alternative ports and options to avoid some of the mayhem. Thankfully our diversified fleet size and our smaller 6000-12,000 dwt vessels have been able to call the more obscure, smaller or

BBC Pearl making the first visit to Lumsden Point at Port Hedland

shallower berths, thus avoiding some of the heavy traffic/congestion that many of our competitors suffer from.”

Mr Capano said Australian ports have been moderate in the sense of congestion.

“However, Newcastle and Fremantle have been the most affected by delays on the landside operation causing some carriers being alongside for 10-plus days attempting to complete discharge but ultimately blocking up the berth and worsening the overall congestion situation,” he said.

THE GLOBAL FLEET The global MPV fleet, in terms of number of ships, has remained fairly static over the past 12 months. There have been very few newbuilds and even fewer vessels scrapped over the period.

Drewry’s Ms Oatway said of some concern is the level of aging tonnage in the global MPV fleet.

“Almost 60% of the total fleet is over 15 years old. For the simple MPVs – those are vessels with lift capability of up to only 100 tonnes, for those the average age is already over 20 years,” she said.

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“The average age for project carrier/heavy liftcapable vessels is nearly 16 years.”

Ms Oatway said the current orderbook is comparable to less than 4% of the current operating fleet.

“This weighs slightly in favour of heavy-lift capable tonnage, but less than half a million dwt in total was added over 2021,” she said.

“This sector remains underfunded in terms of newbuilding funding and investment. Added to this is the fact that newbuilding slots are still at a premium, as the yards are full of container tonnage.”

Ms Oatway said although the short-term outlook remains weak, Drewry expects newbuildings to pick up marginally post-2023 when there is space available and the need for more eco-conscious vessels will probably become more pressing.

“Meanwhile demolition candidates, they’re still in the majority in the smaller vessel sector, with no heavy lift-capable vessels scrapped over 2021. We do expect that number to rise later this year as the current charter market boom starts to weaken, but also as the regulation around decarbonisation start to take effect.”

Putting these supply considerations together shows the global MPV had a reversal of fortune over 2021 after contracting fairly continually over the past five to 10 years, Ms Oatway said.

“Due to those extremely low demolition numbers, it actually grew by just 0.9% over 2021, compared with 2020. That trend is actually likely to continue into 2022 before weakening again in 2023,” she said.

BBC’s Mr Capano confirmed available capacity in the multipurpose/heavy lift market continues to be tight.

“There are very few MPP/heavy-lift vessels available for charter in the market and hardly any newbuildings being ordered,” he said.

“Furthermore, global MPP tonnage is rather old.

So the newbuildings that come to market are rather replacement tonnage than adding additional capacity to the market. Therefore, with a remaining high

German-flagged general cargo vessel BBC Fuji

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barrier to entry the forecast capacity in the MPP/ heavy lift segment will remain extremely tight for the coming years.”

Mr Capano said BBC Chartering’s fleet counts roughly 140 vessels, of which the majority are owned by the Briese Group.

“The orderbook currently has a further five F500 MPP heavy lift vessels slated for delivery in summer, autumn and winter 2022 as well as first half 2024 (two more vessels) respectively. We are working on an order for a modified MPP type with similar intake and lifting capacity as the F500 with the bridge forward those are vessels earmarked for delivery towards 2023-24,” Mr Capano said.

“Further capacity will be added through a number of handy sized and handy max bulk/MPP-capable vessels through the year in reply to shippers’ demand.

The general shipping capacity crunch experienced in 2021 and continuing in 2022 will keep us on our toes for the foreseeable future – bridging commodity types and lots of creative thinking stowing cargoes on ships that were not originally intended or designed for – for example, containers on bulk vessels and windmill components on bulk ships are becoming more common.”

AAL is likewise pursuing a newbuild program.

Mr Mueller said the company’s third-generation newbuilding program was developed with solid market fundamentals firmly in mind.

“With our six third-generation newbuildings of 32k dwt heavy lifters, we are focusing on the same vessel size and long-haul trades that our customers have been trusting us with for many years. These vessels, which we have classified as the Super B-Class were designed to be the most efficient and competent MPVs in the water,” Mr Mueller said.

“They will perfectly complement AAL’s fleet and service profile and, in their design, we harnessed all of our engineering team’s expertise in handling heavy lift, breakbulk and dry bulk cargo since 1995.”

AAL has over the past 10 years targeted large MPP tonnage between 25,000-33,000 dwt and grown its fleet from 14 to 21 owned vessels in the mega size MPP class (30,000+ dwt), Mr Mueller said.

“These vessels are perfect for long haul trades that we operate connecting Oceania, Asia, Middle East, Europe and the Americas,” Mr Mueller said.

He said despite very few multipurpose vessels headed to scrapyards, newbuild orders are being driven by solid market dynamics and long-term cargo forecasts by the carriers and operators themselves, rather than any third-party investors applying a shortterm gain strategy.

“This is extremely important for our sector and will negate the possibility of oversupply and a building boom that took place after 2008 which effectively took down the market for a decade and left many ships unemployed – so tonnage supply is manageable, and we are meeting cargo demand,” Mr Mueller said.

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TUGS & TOWAGE

Towage in flux

a year of change

Ian Ackerman

The past year has seen several shifts in the towage sector in Australia, and trends point to more change in the pipeline, Ian Ackerman writes

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T

he towage industry in Australia and around the world is in a period of change. Environmental concerns are pushing towage providers to reduce emissions from operations. Some companies are beginning to see the fruits of these efforts and many have plans to increase the environmental performance of their fleets.

Alongside this move towards less pollution, more is being required of the tugs during each job, as in Australia, containerships are getting bigger, and therefore are starting to require more from towage services providers.

According to a submission to the Productivity Commission’s inquiry into Australia’s maritime logistics system from Svitzer, there is a trend towards larger ships calling Australian ports, growing at a compound annual growth rate of 14% over the period from 2009-10 and 2018-19. The submission says this growth is driven by better freight economics on larger vessels, as well as investments at ports into channel deepening and wharf expansions.

On the supply side of the industry, the market is significantly fragmented. According to Svitzer’s submission, there are 18 major towage operators in Australia, with several other smaller operations.

Svitzer chief commercial officer – commercial and business development Ivan Spanjic told DCN with larger vessels visiting Australian ports, the towage task is changing, with requirements for more bollard pull and escort towage.

“The bigger ships also mean increasing consolidation – as the ships get bigger, we tend to see a reduction in the number of vessel calls,” he said.

“As the overall requirement goes up, the revenue comes down, as there are fewer resultant tug movements. While I think this is a positive for our industry, it is a challenge we need to be aware of.”

However not all towage operators are as affected by the trend in increasing ship size and decreasing visits.

Engage Marine – parent company to Engage Towage and Westug – CEO Mark Malone said the company has a wide spread of operations across eight Australian

SL Fitzroy and SL Martinique head out to meet Pacific Explorer at Sydney Heads on 18 April 2022

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TUGS & TOWAGE

Mark Malone, Engage Marine

ports and the decrease in ship calls doesn’t have a significant impact on business.

“We are proud to support these larger ships that are calling. We recently escorted the 366-metre containership Le Havre into Port Botany,” he said.

“The MSC-operated vessel is the heaviest ship to have called into Port Botany to date, weighing in at 142,148 tonnes and Engage Marine were pleased to be part of this milestone port event.”

INDUSTRIAL RELATIONS AND EFFICIENCY In its submission to the Productivity Commission, Svitzer – which maintains a vast global network of towage operations – said its Australian operations are less productive than its European operations.

It said Europe has had higher productivity over the past three years when measured by the number of average tug jobs per full time employee. Svitzer’s local operations have a “significantly higher ratio of tug job generated revenue over total [full time employees] reflecting the comparatively higher cost of towage services in Australia”.

In its PC submission, Svitzer pointed to the Australian industrial relations system as a significant impediment to efficiency for towage services operators and maritime logistics operators in general. It said the problem stems from “a power imbalance resulting from union misuse of industrial laws” and said the Fair Work Act needs to be “reconsidered” to remove these barriers to efficiency.

“The maritime industry is characterised by high levels of union membership and the regular threat of

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Engage Marine operates across several areas in the maritime services sector

overt and covert industrial action,” Svitzer wrote in its submission.

It pointed out that most operators work under enterprise agreements made under the Fair Work Act. “By general industry standards these agreements tend to be prescriptive and restrict the efficient deployment of labour. The content of the agreements is the result of historical disputes and practices which are increasingly inapplicable to current operator needs,” Svitzer wrote.

“However, modifying historical inefficiencies is practically very difficult, if not impossible. Indeed union claims are commonly directed to further restrict change.”

Its submission said it is common for negotiations for enterprise agreements to extend many months, sometimes years, beyond the expiry of the agreement.

“During this period the operator is subject to the threat and reality of protected industrial action.

This threat is even applied to managerial decisions that are available to the company under existing arrangements,” Svitzer wrote.

“The indefinite continuation of historical agreements, the deliberate extension of bargaining processes and the constant threat of very damaging industrial action, with consequences well beyond the direct employer, combine to hinder the achievement of efficiencies in the maritime logistics supply chain.”

Svitzer wrote that the lengthy renegotiation process denies operators the stability they seek from making an agreement.

“Removal of these barriers to efficiency will require a reconsideration of the operation of the Fair Work Act in relation to the maritime logistics industry,” Svitzer wrote.

OPERATIONAL UPDATES The past year has seen several changes in the operational landscape of the towage sector.

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Engage Marine

We are proud to support these larger ships that are calling. We recently escorted the 366-metre containership Le Havre into Port Botany.

TUGS & TOWAGE

The bigger ships also mean increasing consolidation – as the ships get bigger, we tend to see a reduction in the number of vessel calls.

Ivan Spanjic, Svitzer

Svitzer signed several new contracts, including a long-term contract to provide towage services for the Australian Department of Defence to service the Royal Australian Navy. The contract, which commenced in October last year, includes the provision of towage services, management of navy towage assets and the development of naval personnel training in major ports in Australia.

Svitzer’s Mr Spanjic said the past year had been an exciting period for Svitzer.

“One of the big ones for last year was the addition of the Woodside contract in Dampier – we’re really quite honoured to have been selected to go on a journey with Woodside,” he said.

“It’s not just about incorporating their towage needs; it’s also looking at that long-term piece with regards to environmental sustainability as well.”

Mr Spanjic said environmental sustainability is at the heart of what Svitzer does.

“Through the contract with Woodside, we hope to demonstrate to the market where we want to be,” he said.

Svitzer has been for the past several years using data and technology to help reduce emissions and become more sustainable.

“We’ve been able to achieve, through the use of a behaviour-based AIS system, a 7% reduction in fuel use,” Mr Spanjic said.

He said the system measures and manages the driver behaviour with a view towards reducing emissions. It works by measuring tug performance against optimal fuel consumption and optimal speed while moving from the tug berth until it commences a job under pilot’s orders.

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Svitzer is not the only towage operator in Australia working on environmental issues. Engage Marine is also turning its focus to sustainability, having devised and launched its pathway to becoming a carbonneutral towage operator.

Engage Marine’s Mr Malone said the company has commenced its long-term strategy for achieving the goal.

“We were the first marine towage operation to be registered with the Clean Energy Regulator as an eligible offset project. The project is in Whyalla and is registered under the Carbon Farming Initiative – Land and Sea Transport Determination and covers a period of seven years, commencing April 2022,” he said.

“As the first of its project kind, we are working closely with the Clean Energy Regulator to establish and develop ongoing emissions management and best practices for the towage industry, which includes operational optimisation innovation as well as direct fuel management initiatives.”

Engage Marine has also seen a busy past 12 months; Mr Malone said highlights include commencement and expansion of operations in two ports. He said on 1 October 2021, the company performed its first shipping movement at the Port of Abbot Point’s North Queensland Export Terminal.

Also, North Queensland Bulk Ports last April awarded Engage Marine a towage licence.

“In the subsequent six months [we] commissioned and delivered three, state of the art, new-build Damen (ASD 3212) tugs, recruited a port manager and a local workforce to man and operate the tugs,” Mr Malone said.

“More recently, Engage Marine secured employee endorsement for a long-term enterprise agreement for

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Svitzer

Svitzer Australia’s fleet includes more than 100 vessels at 28 ports and terminals across Australia

Shell

the operations, which also had the endorsement of all three unions.”

Also, in August last year, CSL Australia awarded Engage Marine a contract to support transhipment operations and provide harbour towage services.

“Engage Marine mobilised four tugs to Whyalla, to support the Engage Challenger, which was already operational within the port,” Mr Malone said.

“The operations are now embedded with a local shore support team and assisting CSL to meet and exceed their transhipment targets.”

Mr Malone said operations remained steady across the company’s other ports, despite the effects of COVID-19.

“We were pleased to secure a contract extension from Dampier Salt at our Westug-operated Cape Cuvier operations and were awarded a marine pilot transfer services contract by the Port of Townsville, which commenced in August.”

PANDEMIC PROBLEMS Towage is essential to ensuring shipping keeps moving, so towage operators had no choice but to navigate the difficult and ever-changing regulations designed to keep the pandemic at bay.

Mr Malone said Engage Marine was able to ensure ongoing operations across all its ports.

He said the company did not miss any shipping movement due to COVID-19.

“As all businesses, Engage Marine had to continually review and evolve its protocols for pandemic management to ensure the health and safety of our people and continuity of towage operations for our clients,” he said.

“Aside from the potential impact to ongoing operations due to COVID-19, Engage Marine also relocated seven tugs from international ports during the preceding six months.

“The challenges of relocating tugs (both new build and existing) without the freedom of international travel and ability to oversee dockings, sea trials and relocation management are immense.”

Mr Malone said the vessel relocations involved compliance with fluid COVID-19 protocols from several countries including Colombia, Panama, Malaysia, Singapore, Vietnam and Australia.

He said the protocols were often in conflict with each other.

“The added complication of hotel quarantine for both the onboarding and disembarking of the delivery crew, proved difficult to secure delivery crew for the journeys,” he said.

“Using multiple crewing agencies allowed us to overcome the delivery crew issues and close co-operation with relevant state governments and safety regulators (including Queensland Health and Maritime Safety Queensland) allowed us to develop unique agreed protocols to reduce quarantine timeframes, whilst ensuring safe vessel imports

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through extensive deep cleaning and controlled access management.”

Kotug Australia, which is headquartered in Perth also navigated issues raised by the pandemic.

Kotug Australia managing director Darren McCormick said over the pandemic period, the company had strict rules in place for COVID management on vessels and has been in regular communication with the WA health authorities.

TUGS TO THE RESCUE

Tugboats played a critical role in a recent emergency on Prelude

Emergency response is part of many towage operators’ work.

While it is hoped that such services are never needed, the truth is that emergencies happen, and tugs are there to help out.

As Kotug is the towage provider for Prelude, part of its remit is emergency response. Last year, the company had to swing into action. In early December, a fire broke out, and the installation, moored 400 kilometres north of Broome, had to be evacuated.

“People were evacuated down in a very, very controlled manner to two of our assets and they just took them all into Broome,” Kotug’s Darren McCormick said.

He said the feedback from Shell was exemplary, with evacuees saying they had received a “five-star service”.

“This was interesting, because having a large number of people on board a very relatively small tug – it’s probably not something you were expecting to hear.”

“Our tugs are small – and whilst they do have a large survivor capacity they only have a crew of nine. There’s only nine cabins, there’s only nine beds. There’s only a small mess room to accommodate nine crew. There’s only one cook on board and being a small vessel in an open sea, especially when there’s a swell, they’re generally not very comfortable to be on to begin with,” Mr McCormick said.

“So when you suddenly place between 35 and 38 additional people on board, that don’t have cabins, that don’t have a lot of space, our crew basically just gave up all of their accommodation space, gave up everything just to make sure that these people were comfortable.

“Being at sea and doing what our guys do, it’s normal to them, but a lot of the people on Prelude are not mariners.”

“The intent was to get them on board, make everybody comfortable, make them some nice meals; that’s what the team did.”

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TUGS & TOWAGE

By working so closely with state government and federal government, navigating through constantly changing rules, because we’ve been working so closely with the authorities, we’ve sailed through [the pandemic].

“Whilst crew movements have been difficult for sure, again, we’ve actually managed just to keep running and stay just as busy as ever all the way through,” he said.

“And by working so closely with state government and federal government, navigating through constantly changing rules, because we’ve been working so closely with the authorities, we’ve sailed through it, excuse the pun.”

THE BIG OFFSHORE Kotug is a family-owned business headquartered in Rotterdam. The company is active in Europe, Asia, Australia, Africa, Middle East, North and South America and the Caribbean. The company is represented in Australia and New Zealand from its headquarters in Perth.

The company provides infield support services and marine emergency response for the facility; the company performed its first official assistance to Prelude in June 2019 (see page 39).

Mr McCormick said the type of towage required for Prelude operations is unique and Kotug is one of the only operators that has the background, experience and vessels to carry out such operations.

“Our vessels operate differently to more conventional tugs – it requires a different way of thinking when berthing a vessel in terms of the indirect towage we do,” he said.

“The Rotortugs have a unique manoeuvrability capability. So when we’re berthing the likes of a large LNG tanker at Prelude offshore, because of the sea state and the heights and wave conditions offshore, you can’t actually put a tug alongside or push a tanker in the way you would conventionally do with a normal vessel. So our tugs actually have to berth the tankers and unberth the tankers without physically touching the vessel.”

Mr McCormick said the lines are connected in a manner where there’s tension which is just constantly maintained and always safe.

“And our vessels have that ability to manoeuvre into any position whilst maintaining that tension

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Darren McCormick, Kotug Australia

even when the tanker is stationary in the water, which means they can actually indirectly pull in or pull off a tanker without actually touching it. And, more importantly, without actually touching Prelude,” he said.

Mr McCormick said the Prelude pilots and the tug crews all train together using simulators and Kotug trainers from company headquarters in the Netherlands.

“We bring them in and they assist in training the pilots in that unique capability of the Rotortug,” he said.

Kotug also has a significant presence in Port Hedland, with both BHP and FMG. Kotug charters vessels to BHP. In October 2021, Kotug chartered two new Rotortugs to BHP’s Port Hedland operations.

The two vessels – RT Imperieuse and RT Clerke – are 32-metre ART80-32 tugs with 80 tonnes bollard pull.

Both tugs are equipped with DMT escort winches.

With these two vessels, BHP has eight Rotortugs deployed at Port Hedland.

In mid-2019, FMG started up its own towage operation at Port Hedland. The mining company built six Rotortugs and engaged Kotug to build two Rotortugs and chartered a third from Kotug.

“These vessels are all of the same class; it’s the ART 80-32 Widebody,” Mr McCormick said.

At the beginning of the FMG towage operations, Westug (part of Engage Marine) was the project subcontractor. But, in August last year, Westug exited the deal, with Kotug now directly managing the FMG Port Hedland towage operation.

THE FUTURE With pandemic-related restrictions seemingly at an end, the difficulties of the past two years likewise seem to be in the past for towage operators, and the entire maritime industry. However, issues remain, particularly around industrial relations.

And there are bright spots; the towage industry has wholeheartedly grasped the environmental imperative, with providers working towards reducing emissions and even achieving net-zero emissions from a sector that historically is not known for its environmental friendliness.

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Kotug Australia

Kotug’s RT Clerke operates at Port Hedland

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Lucky Bay port silos TSV

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Barb Woolford

SOUTH AUSTRALIA

Having withstood the impacts of COVID-19, South Australia’s ports are turning their focus toward future progress and the communities at the heart of it, Abby Williams writes

P

ort activity along the South Australian coastline has been largely driven by the state’s agricultural industry, which has been thriving over the past year. Port operators have reported changes in the state’s throughput and export markets, as well as significant projects and developments planned for the year ahead.

Even with major happenings at South Australia’s ports, and with ongoing supply chain and environmental challenges, the state’s maritime sector has maintained its focus on regional communities and local exporters.

BOUND

SA thedcn.com.au

FLINDERS PORTS THROUGHPUT ACTIVITY As the state’s largest port operator, Flinders Ports manages seven ports along the South Australian coast, at Port Adelaide, Port Lincoln, Port Pirie, Thevenard, Port Giles, Wallaroo and Klein Point.

Commenting on the ports’ throughput trends, Flinders Port Holdings group marketing manager Hannah Davis told DCN that regional ports across the state have seen an increase in agricultural export volumes since the previous year.

“We’re also expecting another successful grain season this year, with fertiliser imports also seeing an increase in volume through Port Adelaide and Port Lincoln on the Eyre Peninsula,” she said.

According to the latest port statistics from Flinders Ports, Port Adelaide received 107,520 tonnes of fertiliser imports in March this year, a substantial increase from the 57,565 tonnes recorded in March 2021.

However, by March this year, grain exports had decreased across Port Adelaide, Port Lincoln, Port Giles, Thevenard and Wallaroo compared with the same month in 2021. Despite the year-on-year decrease, grain exports had increased since February this year at Port Adelaide, Port Lincoln and Thevenard.

Ms Davis said Port Pirie, Thevenard and Port Adelaide are currently experiencing a notable increase in mineral exports and construction materials imports. Vehicle imports reportedly exceeded expectations – in March this year, 5154 vehicle units passed through port of Adelaide.

Though fewer than the 5645 units recorded in March 2021, the figure is higher than the 4362 units recorded in February this year.

Ms Davis said Flinders Ports is working with customers to identify routes to new markets, and current markets are evolving.

“We are seeing a greater diversification of exports such as wine and iron ore as various geopolitical actions begin to have a material impact on exporters. But our role is to ensure that South Australian goods can get to any global market, and that any global input or finished product can get here,” she said.

TRADE DURING A PANDEMIC Ms Davis said Flinders Ports’ facilities remained fully operational during COVID-19, and that most trade flows withstood the direct impacts of the pandemic. However, the effects of global supply chain pressures are reportedly becoming visible.

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“As with all ports, we are now managing the global imbalances in containerised trade and the disruption to container vessels,” Ms Davis said.

“This imbalance means that we have assisted some of our customers’ move to breakbulk vessels to import or export cargo, meaning we limit further delays in the supply chain. It is critical to the industry as a whole that we get back to a more consistent and reliable flow of container vessels that we enjoyed pre-pandemic.”

Ms Davis said the state of the global supply chain is not the only factor which has caused port operations to pivot; domestic environmental challenges have also created disruptions.

“We have seen national events like flooding, bushfires and industrial action directly impact vessel movements,” she said.

“In some instances, we have been added to the call cycle to ease congestion in other ports.”

Despite the hurdles, the ports remain fully operational. Ms Davis said Flinders Ports’ COVIDmanagement plan and protocols have enabled the group to achieve continuity throughout the pandemic.

strengthened and enhanced landside wharf areas and marine structures.”

Of all the projects lined up for Flinders Ports, Ms Davis said the planned improvements at Port Pirie will be the most evident.

“Over the next year, changes will be most visible at Port Pirie, with hardstand already being completed across all berths, improving landside operations.

“We have extended the Flinders Warehousing and Distribution service from Port Adelaide into Port Pirie to assist customers in facilitating break bulk movement for easier exporting of product.

“By having close relationships with our customers, we are well positioned to facilitate such transitions.”

In addition to the projects on the horizon for 2022, Flinders Ports is also anticipating the return of the cruise season later this year, after international cruise shipping was suspended nation-wide in March 2020.

The ban lifted in April this year.

“South Australia [is] expected to welcome its first cruise vessel in late October. This is also another great boost for the industry and the state.”

PROJECTS ON THE HORIZON To facilitate consistent and increasing port activity, Flinders Ports has been investing around $40 million each year across all assets and intends to continue with this level of investment.

A recent development highlight is the completion of the Thevenard wharf upgrade in 2021, which involved restoring the port’s jetty. Ms Davis said there are a range of projects currently set to commence over the coming year.

“At Port Adelaide, we are investing $8.5 million in the Inner Harbour to facilitate growth and additional port capacity,” she said.

“We are also beginning major capital expenditure projects at both Port Lincoln where we will be investing $29 million over the next four years, and Port Pirie we will invest $20 million over the same time frame. In both cases the investment will deliver

FLINDERS PORTS’ SUSTAINABILITY FOCUS With major projects underway, Flinders Ports is working to ensure its future is underpinned by sustainability. Holding a firm position in South Australia’s infrastructure and overall economy, the company has acknowledged the impact its operations have on a range of communities and environments. It also expressed a commitment to ensuring the impact remains positive.

Ms Davis said all capital works projects align with Flinders Ports’ environmental, social and governance objectives.

“Indeed, sustainability was a key focal point during the creation of our new 50-year masterplan, and our focus on ESG is already having a positive material impact on our operations,” she said.

“We have reduced our energy consumption at some of our busiest berths at Port Adelaide, and at the Flinders Adelaide Container terminal by 40%.

“We have also agreed a Virtual Generation Agreement for the supply of renewable-based electricity across Port Adelaide.”

Flinders Adelaide Container Terminal – Outer Harbor

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RETHINKING THE TRADITIONAL PORT MODEL Another player has recently emerged in South Australia’s agricultural supply chain landscape, which is reshaping the traditional port model through an emphasis on transhipment.

Port and transhipment vessel design, build and operating company T-Ports was established in 2018 to initiate the Lucky Bay port facility development on South Australia’s Eyre Peninsula. T-Ports has stated its infrastructure strategy focuses on developing a more financially feasible port model.

According to the company, this model includes a shallow depth of water, lower build cost and a smaller

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Flinders Port Holdings

SOUTH AUSTRALIA

New jetty at Thevenard

environmental footprint. T-Ports currently has two multi-user, multi-commodity transhipment ports under its management, one of which is still under construction.

The Lucky Bay port facility, now fully operational, was developed to facilitate the throughput of agricultural product, but will be expanded over time to allow the export of local minerals.

“To date, there have been more than 40 ships loaded for export from Lucky Bay,” T-Ports chief executive officer Kieran Carvill told DCN. “The three bunker sites on Eyre Peninsula – Lucky Bay, Lock and Kimba – all received significant amounts of grain in the 2021 harvest which is now being exported,” he said.

Lucky Bay has 24,000 tonnes of grain storage capacity in its silos, 360,000 tonnes of storage capacity at its bunker site, and an additional 210,000 tonnes of capacity across bunker sites at nearby Lock and Kimba.

“Wallaroo is currently under construction, with the bunker site expected to be ready for grower receivals for the 2022 harvest, with exports to follow in 2023,” Mr Carvill said.

The Wallaroo port project development was launched in January this year. The port’s grain export facility will feature steel silos with 25,000 tonnes of grain capacity and a 500-metre rock causeway. Grain will be loaded onto transhipment vessels via conveyor.

The facility’s bunker site will feature six bunkers with 240,000 tonnes of grain capacity.

TRANSHIPMENT TECHNOLOGY T-Ports’ transhipment vessel MV Lucky Eyre was built specially for the Lucky Bay port facility and is considered part of the port itself.

Lucky Eyre is an 87-metre self-propelled, selfdischarging vessel with a capacity of 3300 tonnes and a nameplate loading capacity of up to 13,800 tonnes per day. Mr Carvill said there are infrastructural advantages to operating this kind of vessel.

“The MV Lucky Eyre requires a depth of only four metres at port, eliminating the need for large jetty structures or other infrastructure,” he said.

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Our role is to ensure that South Australian goods can get to any global market and that any global input or finished product can get here.

Hannah Davis, Flinders Port Holdings

According to the company’s website, T-Ports’ transhipment vessels are also suitable for use as “container taxis” for the sea. The company said the vessels’ capacity to transport containers can generate savings in the movement of goods both within South Australian waters and interstate.

Mr Carvill highlighted the economic benefits of transhipment technology, which is one of the key elements supporting T-Ports’ business model. In fact, the “T” in T-Ports stands for transhipment.

“Transhipment technology allows ports to be built for between 10% to 20% of the capital expenditure of a deep-water port facility with similar or better operating expenditure structures,” Mr Carvill said.

“This reduces the throughput hurdles to reach profitability significantly allowing port infrastructure to be built to ship product quantities that are insufficient to support the construction costs and operation of a deep-water port. Hence, otherwise uneconomic mineral and agricultural reserves can be profitably exported.”

Mr Carvill said there is significant opportunity for the development of more transhipment ports in Australia. He attributes this opportunity to the country’s long coastlines and the distance products often have to travel to reach an export port.

“T-Ports identifies opportunities, or our potential customers ask us to investigate the most efficient port option to export their product. If the business case is good and the T-Port investors are in support, we move to design and build a fit-for-purpose export pathway,” Mr Carvill said.

“As the transhipment vessel forms part of the port, it is important that we are integrally involved in the design and build of both elements. We have a strong

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SOUTH AUSTRALIA

including financing, design, construction, delivery, management and operation of port and transhipment operations.”

We need to actively develop a culture of respect and inclusion, recognising that the first nation custodians of the land are exactly that.

Kieran Carvill, T-Ports

internal engineering, procurement and construction management team that manages the project through these phases until it is ready for operation.”

TRANSHIPMENT ADVANTAGE Mr Carvill said the transhipment approach fits into the broader supply chain by offering alternative operations where required, or if a business case demands a more efficient outlet to existing supply chains.

He said transhipment port facilities come with several advantages, including reducing environmental impacts, which ultimately accelerates developments.

“This small footprint reduces the time required to obtain regulatory and environmental approvals, shortening the timeframe from inception to completion.

“We are enthusiastic about bringing the port to the product, driving inevitable changes to port construction and marine operations using advanced technology to decentralise assets and increase efficiency.”

Mr Carvill said transhipment ports also offer a significant reduction in domestic road and rail haulage distances and costs. It is therefore cheaper to build new ports than it is to increase rail and road corridors to and from existing deep-water port facilities in areas landlocked by cities.

“T-Ports offers a unique global niche market solution – this can be applied anywhere in the world where there are long coastlines, few ports, mineral and agricultural assets that are close to water but not being extracted,” Mr Carvill said.

“The T-Ports innovative business model offers a comprehensive long-term supply chain solution,

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THE IMPORTANCE OF NATIVE TITLE T-Ports’ emphasis on local partnerships aligns with the relationships they have cultivated with local indigenous communities, namely the traditional owners of the land where the company’s facilities are built.

Such was evident during the launch of the Wallaroo port project development earlier this year, when T-Ports worked with the Narungga Nation Aboriginal Corporation to negotiate an Indigenous land use agreement for the site of the port facility.

Mr Carvill said T-Ports is working to develop a culture of respect an inclusion, which extends to First Nations Australians.

“We believe it is of key importance for all businesses to recognise that native title needs to be taken seriously and not regarded as some cash transaction or a cheap pay-out,” he said.

“We need to actively develop a culture of respect and inclusion, recognising that the First Nation custodians of the land are exactly that.”

Mr Carvill highlighted another “unprecedented” Indigenous land use agreement in place at Lucky Bay, which provides the Barngarla Determination Aboriginal Corporation a shareholding in T-Ports.

“We are deeply honoured to include the BDAC as partners in the T-Ports shareholder structure,” he said.

“We look forward to building a strong partnership with the Barngarla Determination Aboriginal Corporation, as well as the Narungga Nation Aboriginal Corporation; we also look forward to bringing development and career opportunities to the traditional landowners.

“Both of these agreements are based on the recognition of the rights of the First Nation peoples as custodians of the land,” Mr Carvill said.

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Robert Lang; Ian Anderson

MV Lucky Eyre loading Seastar Empress

GROWING WITH LOCALS Unlike deep-water port facilities built near urban environments, transhipment ports can be far from residential areas.

Mr Carvill said the locations of T-Ports’ facilities demonstrate the potential for new economic activity and jobs in rural and remote areas.

T-Ports’ presence in remote South Australian regions coupled with the volume of the state’s grain exports puts the company in a unique position to support and build relationships with local farmers and grain exporters.

“From the beginning, we have worked in partnership with growers,” Mr Carvill said. “We recognise that without their support, we would not exist.

“It is this approach which has enabled us to build mutual respect and trust. We have been honest and transparent, we have not over-promised, but have worked hard to deliver what we said we would deliver.”

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Pilbara Ports Authority

HARBOUR MASTERS

Iron ore carriers at the Port of Dampier, late afternoon

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May 2022

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Five harbour masters, representing Maritime Safety Queensland, Pilbara Ports Authority and Mid West Ports Authority, told DCN about the challenging nature of their work, and why they are supporting the next generation of Australian seafarers he roles and responsibilities of Australian harbour masters are as dynamic as the ports in which they work. Diverse environments, distinct navigational conditions and the occasional weather emergency demand high levels of leadership and control.

Although the focal point of a harbour master’s role is to ensure safe navigation in ports, some are using this position to come alongside young mariners as they forge pathways into the maritime industry. Through their involvement in cadetships and mentoring programs, harbour masters are inspiring and supporting the next generation of Australian seafarers.

MANAGING THE BRISBANE FLOODS When southeast Queensland was inundated with rain through late February and early March this year, assistant regional harbour master Jonathan Beatty was at the helm during a flooding emergency across Brisbane.

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HARBOUR MASTERS

... the focus was on understanding key supply chains and prioritising movements as conditions allowed.

Jonathan Beatty, assistant regional harbour master, Brisbane

Brisbane on 27 February 2022

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Port of Brisbane accommodates a range of vessels, including containerships of up to 350 metres LOA, deep-draught petroleum tankers inbound, deepdraught coal and grain carriers outbound, and smaller vessels carrying refined fuels and agricultural products. Mr Beatty said navigation can be impacted by changing environmental conditions.

“Strong winds can affect the ability to safely bring large containerships alongside, while swell events due to weather systems well out into the Coral Sea can result in narrow tidal windows,” he said.

RECOVERING FROM PORT CLOSURE When the weather event unfolded over Brisbane on the night of 26 February, port operations were reduced and eventually ceased. Mr Beatty said the port experienced minimal movements until 3 March, when conditions had stabilised and were deemed safe enough to resume shipping activity. Even then, movements were carried out in accordance with strict risk-management protocols.

“Over the next four days, and as conditions improved so that the emergency situation could transition from response to recovery, the focus was on understanding key supply chains and prioritising movements as conditions allowed,” Mr Beatty said.

“There were several port related issues affecting the Queensland freight supply chain that evolved with the event. The initial focus was on fuel security, which transitioned to other key commodities as operations recommenced.”

Mr Beatty said initial shipping movements were focused on the Fisherman Island precinct. He said risks were carefully analysed and mitigated even as the weather cleared, as Wivenhoe Dam releases were continuing upstream.

“Restrictions were progressively eased across the port over a number of weeks as flood conditions abated, in consultation with key stakeholders including pilots and towage providers,” Mr Beatty said.

“This was supported by a major hydrographic survey campaign, debris removal and a maintenance dredging campaign from assets of Maritime Safety Queensland, the Royal Australian Navy and Port of Brisbane.”

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MSQ; EyeofPaul

Mr Beatty was the acting Maritime Safety Queensland regional harbour master for Brisbane during what has become known as “the rain bomb”.

Though an unprecedented weather event, he told DCN it was not the first time he had responded to a crisis.

“Before joining MSQ, I served in the Royal Australian Navy where disaster response was an integral part of operations,” he said. “My service included deploying to the Philippines as part of the ADF response to Super Typhoon Haiyan in 2013.

“I had previously been involved in responses associated with ex-Cyclone Oma and APL England while working at the Port of Brisbane. I had also assisted with the wider whole-of-state response to Cyclone Debbie.”

Mr Beatty handed down a series of directives during the floods which guided not only the Port of Brisbane community, but parts of the city threatened by the swollen Brisbane River and dangerous floodwaters.

Under Mr Beatty’s direction, the port was closed, and shipping brought to a standstill as strong currents and large volumes of debris were washed into the channel.

He told DCN Port of Brisbane is a unique navigational environment to work in on an ordinary day, and that the floods amplified its challenging characteristics. He said the port is large and diverse, and that pilotage from open sea to the berths can take more than four hours.

Seafarers a vital link for Australia Let’s give seafarers the support they need to keep delivering Australia’s supplies and exporting commodities for trade.

Seafarers bringing ships to our ports and safely berthing, loading and unloading them, are key to the Australian and global economies.

Now is the time for the shipping industry to prioritise and support seafarers, and to substantially improve their working conditions to a level already in place across other sectors.

AMSA is deeply committed to the wellbeing of seafarers and provides a variety of resources and support services.

amsa.gov.au/seafarer-safety

HARBOUR MASTERS

Carrying out tasks and planning without a fresh view will only provide the same answers each time.

David Ferguson, Cairns regional harbour master

Mr Beatty encountered several challenges as he guided the port community through what he described as a “rapidly developing emergency”.

He said these challenges related primarily to protecting the port’s trade connections in the shortterm while maintaining a focus on safety.

“Balancing these key outcomes was crucial and only achievable through good communications and transparency with all port stakeholders and government agencies, leveraging off already welldeveloped relationships between all parties. It was truly a team effort.”

THE BENEFITS OF EXPERIENCE IN PORT LEADERSHIP Challenging circumstances may often become the platform for harbour masters to demonstrate leadership, but some also use their positions to reshape the culture of the workforce.

Further up the Queensland coast, MSQ Cairns regional harbour master David Ferguson is working to equip staff from a range of departments with training across other areas of the organisation’s operations.

He told DCN this kind of experience expands team members’ understanding of the port environment as well as boosts confidence in their work.

“A simple example is that if a business support officer does not fully understand what a buoy mooring is, how it is used, what the user needs it for and its location, then how can they ensure … that the port is kept safe and that they have the ability to catch errors?

Sharad Kohli, harbour master, Mid West Ports Authority

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Mid West Ports Authority harbour master Sharad Kohli stepped into his role at Port of Geraldton in 2020. The transition followed three years of service as deputy harbour master at Port Hedland, under Pilbara Ports Authority.

“Port Hedland is the world’s largest bulk export port and my time spent there gave me invaluable experience in port operations and industry best practices. The exposure to large scale operations and world’s best systems and processes enhanced my skill set,” Mr Kohli told DCN. “The depth and breadth of experience acquired at PPA has been instrumental in shaping my approach towards managing harbour master responsibilities at MPWA.” At Port of Geraldton, Mr Kohli is responsible for ensuring pilotage, towage, port conservancy and incident management are carried out efficiently and safely.

He said seasonal surges and swells at the port pose unique challenges for the safety of shipping operations, demanding creative solutions to reduce risks.

“As an example, there are defined surge thresholds for each of the seven berths at the Port

of Geraldton. When the surge is forecasted to be higher than these thresholds, the impacted berths are vacated, and the ships moved to anchorage until such time that the surge recedes.”

Mr Kohli said MWPA has procured shore tension units, which are used to safely moor ships at the berths in Geraldton during strong surge conditions.

“Another unique aspect of the port is the design of the berths in the inner harbour. It creates interdependencies of vessel sizes and beams for vessels not only at adjacent berths, but also at other berths.”

Mr Kohli said the port has evolved on several fronts since his arrival. He highlighted the digitalisation of pilotage operations with the introduction of Electronic Master Pilotage Exchange (eMPX) systems at the port.

He said the most notable change was an increased focus on incident and emergency management.

“During 2021, several events occurred at the port – including a cyclone, an oil spill and COVIDpositive seafarers – which resulted in minimal disruption to port activities, primarily as a result of improvements in this space.”

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MSQ ; Image supplied

CHALLENGES AND CHANGES AT PORT OF GERALDTON

Pilbara Ports Authority

“When we had a new business support officer join us recently, once her administration inductions were done, she then spent time out on one of our vessels inspecting buoy moorings with MSQ’s marine officers.

She then went to a shipyard and then spent time in our vessel traffic services centre,” Mr Ferguson said.

“This gave her a thorough, holistic understanding of how buoy moorings are used by our maritime community. This has made her a far more effective business support officer, and also makes it a far more interesting role for her through gaining a better understanding of the impacts of her work.”

EMBRACING DIVERSE BACKGROUNDS Mr Ferguson’s approach carries over into his efforts to help diversify the maritime workforce, not only through people’s experiences in the work environment, but through the people who comprise it. He said having a range of genders, backgrounds and ethnicities represented in the workplace is advantageous to any company’s culture and operations.

“Carrying out tasks and planning without a fresh view will only provide the same answers each time,” Mr Ferguson said.

“While it is critical to be able to draw upon experience, past practice and lessons from the past, we must also enhance these ideas to avoid entrenching ‘that’s the way we always do it’ into our culture.

“Fresh eyes, where we have people from different work backgrounds, allow us to see how we can improve in all areas. While we, of course, have mariners in our workforce from all kinds of vessels … we also have non-mariners. These [people] are from diverse backgrounds including the military, real estate agents, government agencies, airline staff, ships’ agents and others.”

Mr Ferguson is also involved with programs encouraging the younger generation to engage with the maritime environment and consider the industry as a career pathway. MSQ Cairns has taught almost 2000 students about safety at sea, and showcases career options in the maritime sector, both shoreside and at sea.

“Here at MSQ Cairns, we’ve had a number of young women from local high schools join us for work experience,” Mr Ferguson said.

“In only a few days they were able to spend time with us in the MSQ office, go out on the harbour in our vessels and go aboard Queensland Police and Australian Border Force vessels. In addition, the Great Barrier Reef International Marine College hosted the students on the college’s ship simulator and … fire training and lifesaving training facilities. We also spent time talking about career pathways and options.”

MARINE CADET OPPORTUNITIES On the west coast of Australia, Port of Dampier presents its own challenges. It isn’t situated within a bay or channel, and yet it is not sheltered by

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Marine cadets Katelyn Arnold, left, and Jeri Ingleton, right, at Port of Dampier

breakwaters. Instead, its 28 berths and one slipway are located on jetties. The port’s 650-square-kilometre marine area includes the islands of the Dampier Archipelago and 11 navigational channels.

The port primarily exports iron ore, salt, LNG, LPG, condensate, anhydrous ammonia and general cargo.

Imports include diesel, containers and general and project cargo. The port also plays a significant role in servicing the offshore oil and gas industry off northern Western Australia.

At Dampier, Pilbara Ports Authority harbour master Mike Minogue ensures these operations are carried out efficiently and safely. Beyond this level of work, he also mentors PPA’s marine cadets.

Mr Minogue told DCN the mentorships complement the structured training plan of the PPA Marine Cadetship Program – the first program to offer school leavers experience on international trade routes – but mentor relationships are also nurtured outside the prescribed training. He said cadets are able to connect with the harbour master team to receive guidance and advice.

“Once they are at sea, the cadets are enrolled with the shipping company’s cadet training program, but we remain in close contact with them – asking them how they are going, letting them know we are there if they are feeling unsure or if they are feeling a bit down,” he said.

“They are on board a ship for six months at a time and during this time there is no opportunity to pop back and see family.

“As a cadet, you need to have a strong determination to succeed and a support network.

As a cadet, you need to have a strong determination to succeed and a support network. We provide them with that support to help achieve their goal.

Mike Minogue, Dampier harbour master

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HARBOUR MASTERS

Left to right: Marine Cadet Jeri Ingleton, Dampier Harbour Master Mike Minogue, Marine Cadet Katelyn Arnold and Pilbara Ports Authority CEO Roger Johnston at a Rio Tinto iron ore berth in Dampier

“We provide them with that support to help achieve their goal.”

Mr Minogue said harbour masters are in a unique position to support young mariners pursuing careers at sea. He said the knowledge harbour masters share with cadets is ultimately growing the next generation of Australian seafarers.

“By sharing our knowledge and experiences with them, we are then able to maintain this knowledge within Australia’s maritime industry.”

THE WOMEN INSPIRING YOUNG AUSSIES Welcoming young people into the maritime sector also creates an opportunity to diversify the workforce. At Pilbara Ports, two female marine cadets are currently being mentored by PPA’s team of harbour masters. Mr Minogue said their involvement has become a source of inspiration for other school leavers considering maritime careers.

“Katelyn Arnold and Jeri Ingleton have been active in promoting the program by being interviewed for the local radio and newspapers and speaking about their adventures,” Mr Minogue said.

“When looking through applications to the cadetship program, I am looking at skills and

Anurodh Prasad, Ashburton harbour master

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May 2022

Every port is distinct in terms of topography, metrology, tidal conditions and currents, which makes navigation and manoeuvring a specialist skill unique to that port.

WHERE TO NEXT? At PPA’s Port of Ashburton, harbour master Anurodh Prasad oversees significant port of activity through one of the most environmentally sensitive regions in the world. He said its natural characteristics allow vessels no margin for error while navigating in or out.

“Every port is distinct in terms of topography, metrology, tidal conditions and currents, which makes navigation and manoeuvring a specialist skill unique to that port,” Mr Prasad said.

“The Port of Ashburton receives some of the largest LNG carriers in the world through a deep-water channel, augmented by established procedures to ensure a high standard of safety and deliverance.”

Mr Prasad’s role is to constantly evaluate these processes to identify opportunities for improvement, and to explore and facilitate trade. He is also involved with the local PPA cadetship program.

Noting the Australian economy’s dependence on exports, Mr Prasad said the functionality of the country’s ports and the movement of freight requires people with technical maritime skills. This also applies to bringing ships in and out of port.

“I became involved with cadet training and mentoring during my previous role as deputy harbour master for the Port of Dampier, and I still engage with the cadets to guide and assist,” Mr Prasad said.

“The key aspect of that mentoring has been remaining in touch with the cadets while they are at sea and to be part of their journey, through the good days and the bad, to give a bit of a pep talk at times and motivate them through any rough time.”

He said there are a range of career opportunities open to young mariners, but he has observed cadets’ immediate goals are typically to become an officer, and then often, a captain.

“If they want to pursue a career beyond sailing, there are options available such as technical managers, charterers, marine lawyers and pilots, as well as harbour masters.

“I am sure that as they mature in their profession, the cadets will discover their leanings, and becoming harbour masters would always certainly be a top choice for any mariner.”

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Pilbara Ports Authority

potential. Katelyn and Jeri were very strong applicants.”

Four cadets have progressed through PPA’s cadetship program at Port of Dampier since its inception in 2018. Some have expressed interest in going on to become harbour masters themselves, but the program is also a pathway into other maritime careers. Mr Minogue said most cadets choose to obtain their master mariner certificates before deciding their next steps.

“Our first marine cadet, Ben Hobart, has just finished his sea time and will be attending college shortly to undertake his Diploma in Maritime Studies and gain his Officer of the Watch certificate,” he said.

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Pilbara Pilbara Pilbara Ports Ports Authority, Ports Authority, Authority, Level Level 5/999 Level 5/999 5/999 HayHay Street, Hay Street, Street, Perth Perth Perth 08 08 621708 6217 7112 6217 7112 | 7112 www.pilbaraports.com.au | www.pilbaraports.com.au | www.pilbaraports.com.au | feedback@pilbaraports.com.au | feedback@pilbaraports.com.au | feedback@pilbaraports.com.au

INDUSTRY ANALYTICS

Volumes to values: the future of Australian commodity exports Prices for Australia’s main commodity exports – coal and iron ore – have shot up recently but are expected to settle back down in the near future. Meanwhile, volumes are expected to steadily increase over the coming five years, according to the latest Resources and Energy Quarterly report

AUSTRALIA IS EXPECTED TO SEE

for Australia’s gas, coal and oil are a key contributor to our record export earnings,” Mr Pitt said.

One significant unknown is the extent of the impact of Russia’s invasion of Ukraine on global commodity markets. Countries have been ratcheting up punishing sanctions on Russia, which is a significant exporter of energy. The authors of the REQ pointed out that world trade could see “some bifurcation in line with geopolitical alliances” over the next five years.

“Critical global shortages in energy and resource commodities have led to record prices for many of our commodities,” Mr Pitt said.

“The REQ notes that with international coal prices at record levels – as the war in Ukraine and the ongoing La Niña weather conditions affect supply and demand

record resources and energy export earnings in the current financial year, according to the latest edition of the Resources and Energy Quarterly, published by the Australian government.

Total earnings for this year are expected to hit $425 billion. However, that number is expected to decline in the 2022-23 financial year to $370 billion and fall further over the period to 2027. The report authors say the fall will be driven by bulk commodity prices returning to more normal levels after recent increases.

Minister for resources Keith Pitt in a statement said the latest forecast is up a “stunning” 12% on the December 2021 REQ projection of $379 billion.

“The March 2022 REQ has found that soaring demand and high prices

– Australia’s combined coal export earnings are forecast to rise to about $110 billion in 2021-22.

“Coal becomes only the second Australian commodity after iron ore to break through the $100 billion annual export mark.”

Mr Pitt said the combined export earnings for lithium, nickel and copper will likely exceed $23 billion in 2021-22, which would be an increase of 38% on the 2020-21 earnings.

“These forecasts again confirm just how important Australia’s resources and energy sector is to the nation’s economic and energy security,” he said.

IRON ORE Australia is the largest iron ore producer in the world. Over 2021, Australia was

AUSTRALIA’S RESOURCE AND ENERGY EXPORT VALUES/VOLUMES 125

450 Values (rhs) 360

75

270

50

180

25

90

2027

2026

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

0 2007

0

2021–22 $ billion

Index, 2021–22 = 100

Volumes 100

Source: ABS (2022) International Trade in Goods and Services, 5368.0; Department of Industry, Science, Energy and Resources (2022)

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WORLD CONSUMPTION OF IRON ORE

WORLD CONSUMPTION OF METALLURGICAL COAL

REST OF WORLD 22%

STH KOREA 3%

CHINA 59%

CHINA 56%

STH KOREA 4%

JAPAN 5%

JAPAN 5%

EU 5%

EU 5%

INDIA 9%

AUSTRALIA’S IRON ORE EXPORT VOLUMES AND VALUES 1250

200 Values (rhs)

1000

160

750

120

500

80

250

40

2027

2026

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

0 2011

0

$ billion

Volumes

Million tonnes

responsible for 53% of the world’s iron ore exports. Brazil was the second largest, with 22% of global exports.

Over the 2020-21 financial year, Australian exports of the commodity were worth $153 billion. However, iron ore exports are expected to fall in the next five years. The global economic recovery from the COVID-19 pandemic and constrained supply pushed prices above US$230 per tonne mid-last year.

But, going forward, a cut in Chinese steel output and a recovery in Brazilian supply are expected to push iron ore prices down over the coming five years, according to the REQ.

INDIA 10%

RUSSIA 7%

thedcn.com.au

AUSTRALIA’S METALLURGICAL COAL EXPORT VOLUMES AND VALUES 1250

Volumes

70

Values (rhs)

60 1000

750

40 30

500

$ billion

Million tonnes

50

20 250 10 0 2027

2026

2025

2024

2023

2022

2021

2020

2019

2018

0 2017

Jacek Fulawka

Source: ABS (2022) International Trade, Australia, 5368.0; Department of Industry, Science, Energy and Resources (2022)

METALLURGICAL COAL Prices for metallurgical coal rose to record highs at the end of 2021 and surged again when Russia invaded Ukraine in late February.

The REQ predicts the average price for Australian premium hard coking coal to be more than US$300 per tonne over 2022.

But that price is expected to nearly halve as supply conditions return to normal in 2023, with prices falling to US$133 per tonne in 2017.

While prices decrease, volumes are expected to increase. Australia’s exports are forecast to rise from 171 million tonnes in 2020-21 to 184 million tonnes in 2026-27 as production in New South Wales and Queensland increases.

Source: ABS (2022) International Trade, Australia 5454.0; Department of Industry, Science, Energy and Resources (2022)

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TRADE LAW

Significant developments in the Australian free-trade agenda AS AUSTRALIA MOVES TOWARDS a federal election on 21 May 2022, the federal government and its agencies have moved to act in accordance with its caretaker conventions.

These conventions, while allowing for the normal business of government to be conducted, place some restrictions on that business. However, that does not preclude the busy negotiators from the Department of Foreign Affairs and Trade from advancing our national interests with a variety of new and proposed trade agreements, whether recently completed or still being negotiated.

For these purposes, I thought it was worth summarising progress with those trade agreements that are of significance to industry whether they are known as freetrade agreements or economic partnership agreements or have other titles.

The work on trade liberalisation by DFAT and other agencies also represents an important counterpoint to the challenges created by supply chain blockages and sanctions and other trade controls associated with Russia’s war with Ukraine.

REGIONAL COMPREHENSIVE ECONOMIC PARTNERSHIP (RCEP) As referred to in our previous commentaries and continuing professional development sessions, the RCEP came into effect for Australia on 1 January 2022.

Other countries have since completed their implementation procedures and become

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active parties to the RCEP, most recently with RCEP coming into force on 18 March 2022 for Malaysia. This means that RCEP has yet to enter into force for Indonesia, Myanmar or the Philippines.

COMPREHENSIVE PROGRESSIVE TRANSPACIFIC PARTNERSHIP (CPTPP) Although the CPTPP has entered into force for several parties (including Australia), ratification by Brunei, China and Malaysia has yet to take place. For those countries, the CPTPP will enter into force 60 days after they complete their ratification processes. As at the time of writing, several countries (the UK, China and Taiwan) have expressed their intention to accede to the CPTPP. Of these countries, the UK is the most advanced with the CTPP Commission agreeing to formally commence accession negotiations with the UK on 2 June 2021. DFAT is now inviting submissions from interested parties on the impacts of the UK acceding to the CPTPP. AUSTRALIA-UNITED KINGDOM FREE TRADE AGREEMENT (A-UKFTA) We recently reported on the signing of the A-UKFTA and have included commentary on some of its impacts for industry in CPD sessions.

Australia is now progressing to the ratification process which includes submitting the agreement for scrutiny before the Joint Standing Committee on Treaties (JSCOT) in our Federal

Parliament. However, the agreement did not complete the required review by JSCOT before the dissolution of Federal Parliament ahead of our next federal election on 21 May. Accordingly, the consideration will need to start again before the newly constituted JSCOT following the election. The A-UKFTA has bipartisan support so, hopefully, JSCOT would recommend taking action to proceed. That would then lead to passing legislation required to implement the A-UKFTA, mainly with amendments to a variety of customs legislation.

At the same time as Australia takes steps to ratify the A-UKFTA, the UK is proceeding along its own pathway for ratification of the agreement. Most recently the UK Trade and Agriculture Commission (TAC), established under the UK’s Agriculture Act 2020 was tasked by the UK’s Department for International Trade to provide advice as to certain aspects in the A-UKFTA relating to trade in agricultural services and whether they would require any changes to the UK’s domestic statutory protections in relation to animal or plant life or health, animal welfare and the environment, whether the A-UKFTA would affect the ability of the UK government to set such statutory provisions in the future or whether they would undermine such current protections.

The report by the TAC (dated 31 March 2022) was then released to the

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Pixels Hunter; Ian Ackerman

Trade law expert Andrew Hudson provides a summary of recent and still-under-negotiation trade pacts and analyses their significance

enabling legislation would be needed to be passed by the Federal Parliament (again including amending customs regulations).

The other significance of the AI-ECTA is that it will provide a timeframe to start negotiations on a more comprehensive agreement, being the Australia-India Economic Co-operation Agreement (AICEPA) which is hoped to be completed by the end of 2022 for later ratification and implementation. Those negotiations could be conducted despite the current caretaker conventions.

UK Parliament dated “April 2022”. The report examines in some detail whether there would be significant increases in imports of Australian products and whether differences in treatment of agricultural products between Australia and the UK would be in breach of current UK protections and would preclude the UK from taking action against imports it believed to be against UK protections or UK “public morals” (for example, in terms of differences in the use of feedlots, pain relief standards on animals subject to procedures and the types of procedures allowed). In most part, the TAC Report considered that the UK “public morals” provisions of the A-UKFTA and WTO agreements would not preclude the UK from taking actions it believed to be required (so long as they were implemented equally against imports of all countries) or to raise issues with Australia pursuant to the terms of the A-UKFTA for discussion and resolution.

AUSTRALIA-INDIA ECONOMIC COOPERATION AND TRADE AGREEMENT (AI-ECTA) Our commentary here provided some details on positive outcomes from the AI-ECTA. However, that agreement may take some time to be ratified and implemented in both countries. In Australia, it will also need to go before JSCOT and then, subject to a positive recommendation from JSCOT, domestic

thedcn.com.au

AUSTRALIA-EUROPEAN UNION FREE TRADE AGREEMENT Australia and the EU commenced FTA negotiations on 18 June 2018 and it is probably reasonable to say that there is no sign that negotiations are close to completion. The twelfth negotiating round took place between 7 and 18 February 2022 and there seem to be several issues still to be resolved. Among such issues are the request from the EU to preserve many “geographical indicators” for the exclusive use of EU producers and exporters and the possibility of a “carbon tax” being imposed on goods from countries which the EU do not believe have appropriate carbon policies in place (such as Australia).

AUSTRALIA-UAE COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT On 17 March 2022, trade ministers from Australia and the UAE released a joint statement announcing the intention of the parties to pursue a Comprehensive Economic Partnership Agreement (CEPA).

This would be Australia’s first FTA with a Middle Eastern country and would be operate as a starting point to the broader based FTA with the Gulf Co-operation Council (GCC) which is referred to below. Australia and the UAE had previously started work on an FTA with the UAE in March 2005; however, those negotiations were subsequently taken over in negotiations for the FTA with the GCC which negotiations were paused in June 2009. DFAT is currently seeking submissions from interested parties whose business interests would be affected or improved by the CEPA.

Qatar, Saudi Arabia and the UAE) had commenced negotiations on a proposed FTA in July 2007 but those negotiations were paused in June 2009. The pause in negotiations was initially caused by an internal review by the GCC of its approach to trade agreements. However, at the GCC Leaders Summit in 2021, the GCC representatives expressed their interest in potentially resuming negotiations (see here). While negotiations have not yet commenced, DFAT is seeking comments from stakeholders with an interest in the agreement, including details of any current impediments to trade with the GCC which could be addressed in the FTA with the GCC. DFAT has advised that comments on a potential agreement with the GCC can be included in comments on the CEPA with the UAE. SUMMARY In my experience, DFAT has always pursued the Australian FTA agenda including extensive engagement with stakeholders at all stages before or after those FTAs have been concluded.

I am always eager to be involved in that engagement before these agreements are concluded so that specific issues (such as rules of origin and customs procedures for claims of preferential status) can be raised with DFAT. Many clients also wish to be involved to pursue their own interests and, in my experience, it is much better to try and have issues included in an FTA before it is concluded as opposed to after the text of the FTA is agreed. Even so, there are still ongoing working committees established by the FTAs which provide opportunities for specific concerns to be raised by DFAT in those committees.

Whatever approach is adopted, it is in the interests of every part of industry to pay close attention to FTAs before they commence to ensure that the full range of benefits can be secured as early as possible after the FTA commences.

Andrew Hudson, Partner, Rigby Cooke Lawyers

AUSTRALIA-GULF CO-OPERATION COUNCIL (GCC) FREE TRADE AGREEMENT As stated above, Australia and the members of the GCC (Bahrain, Oman,

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MARITIME HISTORY

Pillaging evil On 12 May 1922, DCN published an article titled Pillaging Evil, responding to the final report from a royal commission describing cargo theft on Australian wharves

locks found in cargo holds and stolen goods stashed in crew cabins. Cargo theft was also common while vessels were being unloaded after reaching Australia. Wharf labourers were often convicted upon being found with stolen goods in their possession. Pillaging during discharge was also evidenced by broken alcohol cases, empty bottles lying around ships’ holds and drunk stevedores.

The royal commission suggested carriers and warehouse workers had also been convicted for stealing goods in their charge and questioned whether customs officers were involved in conspiracies to facilitate the criminal activity.

DCN ENCOURAGES INDUSTRY TO TACKLE CARGO THEFT At the time the royal commission report was published in 1921, DCN released an article highlighting the suggestion that persons convicted for pillaging, who would typically receive a fine, should instead be put in prison. In May 1922, it urged shipping companies, underwriters, merchants, manufacturers, Lloyd’s agents, trade unions and police to convene and act on the commissioner’s recommendations.

“Some of the States considered the recommendation embodied in the report, while others have disregarded an invitation to attend a conference, with the result that the matter stands as before the Commission was appointed,” the article said.

THE ROYAL COMMISSION ON PILLAGING OF SHIPS’ CARGOES The Royal Commission on pillaging of ships’ cargoes had commenced in 1920, with a final report handed down in the July of the following year. The report described the nature of pillaging and cargo theft on Australian wharves, and in many cases, in the countries of export.

According to the royal commission report, cargo was often found to have been stolen prior to Darling Harbour circa 1900 shipment, confirmed by the import of shipping cases packed with rubbish of a similar weight to the cargo that was supposed to be there. Cases that should have contained motor accessories or ladies’ hosiery instead contained outdated American newspapers, bricks, and in one instance, stable manure.

Goods were also stolen during voyages, with broken

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“Thousands of pounds were spent, involving five months’ work taking evidence in all the principal ports of the Commonwealth, in endeavouring to solve the problem of pilfering, thieving, or pillaging from wharves and from ships’ holds.

“Yet the matter was allowed to be shelved, while merchants and shippers sustained heavy losses because the authorities would not co-operate on a definite plan against the pillaging evil.”

“REMEDYING THE PILFERING EVIL” IN COMMONWEALTH PORTS The article described the “nefarious evil” that was unfolding as authorities failed to co-operate and establish a plan to curb the trend. It said pillaging continued unbated while merchants were “bitterly complaining” at the apathy of the New South Wales government.

“Thousands of pounds worth of goods are stolen from the wharves and ships’ holds in Commonwealth ports during the year,” it said.

“Several port authorities in the Commonwealth in the meantime instituted police control on wharves, with some degree of success. The scheme proved effective in at least reducing the evil, so far as the handling of goods at these centres were concerned.

“However, it matters not whether police control or wharf control is instituted, so long as the various bodies mentioned in the report of the Royal Commission on pillaging get together at once and decide on a co-operative plan to remedy the pilfering evil and save the enormous sums which are lost annually. The report of the Royal Commission contains useful and practical recommendations, which, we venture to state, if acted upon, a muchimproved state of affairs would develop in the ports of the Commonwealth.”

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NSW State Archives

ONE HUNDRED YEARS AGO, IN MAY 1922, the Daily Commercial News and Shipping List reported on the coal trade, the running costs of motor ships and the anticipation of various world exhibitions.

Of all the articles published that month which echoed this time in maritime history, none seem to capture it as much as one which addressed the problem of pillaging.

“Although long overdue, the New South Wales Government have at last decided to call a conference together at the earliest possible moment to carry out the suggestions contained in the report of the Royal Commission appointed by the Commonwealth Government in connection with pillaging,” the article dated 12 May 1922 said.

“As is well known, the report of the Royal Commission, appointed to investigate the question of pillaging on wharves and in ships’ holds was presented to the various States in August of last year.”

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OUT & ABOUT

Cruise returns to Sydney Pacific Explorer became the first international cruise ship to pass through Sydney Heads in more than two years THRONGS LINED SYDNEY COVE on a sunny April morning to welcome P&O’s

There was much excitement in advance of the ship’s arrival

Ian Ackerman

Pacific Explorer to the Overseas Passenger Terminal.

It was an emotional event for many. Some of the darkest days of the COVID19 pandemic in Sydney were ushered in with the arrival of the cruise ship Ruby Princess in March 2020. The arrival of the first cruise ship in Sydney in more than two years can be seen as a pandemic bookend in the city.

Port Authority of New South Wales chief executive Philip Holliday said the return of cruise was a moment the port authority had been waiting for.

“Hearing our marine pilot requesting port clearance and our vessel traffic team welcoming the ship’s captain back to Sydney Harbour was one of the sweetest radio calls I’ve heard for a long while,” he said.

Pacific Explorer is scheduled to remain in Sydney as it prepares for its first guest cruise to Brisbane, departing 31 May. It is expected to make the first call at Port of Brisbane’s new cruise terminal on 2 June.

Pacific Explorer is a UK-flagged cruise ship operated by P&O, it is 261 metres long and has 10 passenger decks

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News helicopters circled the ship as it entered the harbour

Pacific Explorer came into Sydney Harbour on 18 April

Two escort tugs provided onlookers on Bennelong Point with a spectacular water show

The ship was the first cruise vessel to tie up at OPT in more than two years

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Sydney is soon to be a cruise destination once again

May 2022

63

MISSION TO SEAFARERS

Connecting with the past at Port of Newcastle Mission to Seafarers reflects on the role seafarers have played in Port of Newcastle’s maritime history, and their sacrifice in times of war

SINCE 1873, MISSION TO SEAFARERS Newcastle has offered a place of rest for visiting seafarers, and a few hours away from the usual humdrum of shipboard life.

This peaceful environment was especially important in the late 1880s and early 1900s. Publications of the time contained seafarers’ stories of the assistance provided by MtS during their often-lengthy stays at Newcastle. At the time, it was acknowledged as one of the great sailing ship ports of the world.

Majestic ships would load cargo at Newcastle before sailing to Europe or the Americas. Sadly, this was often the last contact these crews had with civilisation.

Many ships that sailed on into the South Pacific disappeared without a trace.

Between the 1920s and 1940s, the mines around Newcastle supplied bunker coal for steamers. Increasing numbers of steam ships called at Newcastle to bunker, and the mission became busier as it hosted the larger crews serving on these vessels.

MtS continued to serve seafarers during World War II when merchant ships off the NSW coast were targeted by submarines, resulting in heavy loss of life. Just as sad as the loss of local ships and crews was the loss of foreign vessels engaged in the Australian steelworks trade as their home countries were overrun by axis forces.

Many seafarers died far from home on vessels now long forgotten.

Later, ships became much larger, and the old Newcastle suburb of Carrington re-emerged as a bulk coal loading facility.

The coal export coal trade boomed, and Port of Newcastle became the world’s largest coal export port. When the BHP steelworks facility closed in 1999, inbound bulk cargoes plummeted, and the MtS centre in the port suburb of Wickham became more mobile to meet the quick turnaround of many large bulk carriers.

The pandemic has interfered with seafarers’ ability to access the mission

centre in Wickham. The facility has expanded over the past decade under the direction of senior chaplain Reverend Canon Garry Dodd, with the assistance of the management team and volunteers.

In 1994, the unveiling of the Newcastle memorial for merchant mariners lost in time of war in saw a prominent memorial situated on the Newcastle harbour foreshore. A service has been held each year to commemorate the loss of merchant seafarers, coinciding with the anniversary of the sinking of local steamer Iron Chieftain off Sydney on 3 June 1942, the first ship sunk by a Japanese torpedo.

MtS has been closely associated with the annual service since its inauguration. The service is supported by local dignitaries and features a different shipping company with a connection to Newcastle each year.

The weather-dependent event has been hosted at the mission centre for the past three years with the help of Rev Garry Dodd and a team of volunteers.

The merchant navy memorial service not only connects the city of Newcastle with the mission and the maritime community, but also ensures the sacrifices of seafarers in times of war are not forgotten.

On the coast of South Australia sits the township of Ceduna, with a population of fewer than 3500. It’s a nine-hour drive to Adelaide, but less than 10 minutes’ drive to the nearby Port of Thevenard, which welcomed 954 vessels in 2021 alone.

The local MtS centre plays a crucial role for crews visiting this beautiful little township. It provides everything seafarers have come to expect from our Australian welfare centres, as well as transport into Ceduna and support in an isolated area.

Like most of our centres, the Thevenard centre is run solely by volunteers, and felt the impact of COVID-19. It is difficult to recruit volunteers from such a small population. The average age of Ceduna’s residents is also increasing, adding to the strain on local charities.

To enable our welfare centre to serve the 20,000 seafarers visiting this tiny township annually, we welcome the maritime community’s contribution. Skills in accounting, IT, and secretarial support are invaluable, as is expertise on a board, or time spent volunteering at a centre. Virtual volunteering has become a possibility, facilitating support for our 28 Australian centres no matter where our volunteers are.

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Rev Susan Doughty, registered nurse and chair of MTS Thevenard giving seafarers vaccinations

thedcn.com.au

Image supplied

VIRTUAL VOLUNTEERING AT MTS THEVENARD

A 2 Year Journey to Digitisation A SUCCESS STORY As with many logistics providers, Melbourne-based KTL was facing competitive threats from digital-first-forwarders and larger competitors. As they tried to meet their customers’ evolving expectations of a more modern, Amazon-like shipment visibility and customer experience, KTL realized they needed to dramatically improve their digital customer experience – and that they needed help.

Finding the right partner, however, proved difficult.

.CHALLENGE. GETTING THE PROMISES TO MATCH REALITY KTL researched solutions and eventually settled with a visibility software vendor that promised they could integrate with CargoWise One. Unfortunately for KTL, the software vendor struggled with technical implementation. As with most logistics providers, the KTL team didn’t have the specific technical background or experience with the software to really drive the integration of an external software forward themselves.

So, after nearly 2 years, KTL was still not getting the value they were promised.

“The first year was trying to understand what it would do and then it was a good 3-6 months of testing, and then finding problems, trying to pinpoint the issues,” explained KTL General Manager Levi Tankir.

On top of that, KTL’s operational efficiency declined when trying to get the software program to work.

“Our own operators had to manually update extra fields when there were changes to a shipment. They were doing enough as it was and it was too much extra labor that you shouldn’t have to do,” said Makaela Cramp, KTL Pricing Marketing Coordinator

.SOLUTION. TAKING A MORE “DONE FOR YOU” APPROACH

To KTL’s pleasant surprise, “The Logixboard integration was easy. Just a couple of emails with Logixboard and it was done.” Tankir said with relief.

He added, “The Logixboard team did all the work in the background and then it was presented nicely to us. It was delivered in a working format as opposed to having so many back-and-forth questions like we had in the past with another provider. Everybody understood everything from day one, and when we had questions, Logixboard had the answers.”

.RESULT. LIVE IN 3 WEEKS WITH 3 NEW DEALS IN LESS THAN 2 MONTHS After the integration, KTL started closing new deals with Logixboard right away.

“One or two that I’ve had, and at least one from our sales team. Three definitely happened. And this is just brand new,” said Tanker shortly after the integration. “Our sales guy just asked me this morning if we could add a couple of his new customers on Logixboard. So he’s selling it, obviously using it, and that’s what we were looking for.”

They’ve also been able to go back to win former prospects they couldn’t quite convert before having Logixboard.

.CONCLUSION. COMPLETE CUSTOMER SATISFACTION KTL Australia’s commitment to putting their customers first by giving them better visibility through a modern digital customer experience platform is paying off. Within the first few months of implementing Logixboard, they are not only closing more deals but seeing customer satisfaction scores skyrocket. “Our customers’ reaction to Logixboard has been positive, from all of them,’’ Cramp stated enthusiastically.

“We did a survey with them and they were all really happy with it. It has been a wonderful experience working with Logixboard.”

It was about this time that Logixboard reached out to KTL and began showing them how Logixboard’s CargoWise integration worked. After such a poor experience over the last 2 years, naturally they were a bit hesitant to try again, but client demands and the need for a digital solution won out.

They decided to go for it.

“The Logixboard integration was easy.

Just a couple of emails with Logixboard and it was done.”

- LEVI TANKIR, KTL GENERAL MANAGER

Scan the QR Code to Learn More www.logixboard.com/dcn/

The grill Andy Perry, Engage Marine general manager – East Coast, sat down with DCN to talk about mentorships, living in Dubai and encounters with pirates

Why is this connection with the crew important?

A big part of my role is mentoring and supporting the leaders in the ports, giving them the space to develop, learn and grow. I point them in the right direction based on my own experiences, but something that has worked for me might not necessarily work for them, which is why it’s important to let them grow their own style and way of doing things. It’s like giving them the right path to go down, but if they’re already on that path, encouraging them to carry on developing it.

You’ve got an extensive background in the maritime industry. Where did it begin?

I went to sea when I was 16. I was a deck cadet with P&O, and during my 10 years at sea I also worked for Norfolkline – an old subsidiary of Maersk – on the cross-channel ferries in the UK. After working my way up to chief officer, I came ashore and joined a Maersk leadership

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program called Maestro, which was designed to teach seafarers and officers about the commercials and financials of ship management. I then got a role with Maersk Ship Management in the Netherlands, and later moved back to England, where I was approached by Svitzer to work in Liverpool, then by Smit Lamnalco, which offered me a role in Dubai. I was there for around a year before being approached to take over the fleet manager role at Svitzer Australia.

What did your role with Svitzer Australia entail?

It involved a move to Sydney back in 2013, and I was there for five years looking after the whole Australian and PNG business from a fleet management perspective.

After that, I wanted to get a bit more general management experience and moved to become Brisbane port manager for Svitzer. Last year, I was approached by Engage Marine to take over their east coast operations. I had a wonderful nine years with Svitzer, but the opportunity with Engage was too good to turn down.

You’ve moved around a lot. What was your favourite place to live?

At the moment, Brisbane is the best place I’ve ever lived. But at the time, I really loved Dubai because of the diversity and the complete change in culture. Seeing something so different was a huge learning curve and learning opportunity. The good night life helped as well. But of course, there’s no place like home. I had lots of good times living near London and in Liverpool. I miss friends and family over there, but I don’t miss the weather.

What stands out to you as your most dangerous experience at sea?

We were bringing one of the new ferries back from Korea, and we were going across the Indian Ocean. I was doing the 0400 to 0800 watch. The ocean was calm, the sun was rising, and you could see dolphins and flying fish. It was stunning. But then on the radar we saw these four very fast-moving objects coming to us from the starboard side. They were skiffs. I saw one guy leaning on what looked like a broom, but as they got closer, I could see it was a gun. We called the captain up, put the fourth engine on and sprinted away very quickly – those ferries went very fast. They circled us a couple of times and then left. They were pirates.

What’s your all-time favourite movie?

The Green Mile. It’s just an amazing story – the way the characters go from being at odds with each other to showing compassion to one another. It’s a bit of a tear-jerker, and there are a lot of lessons you can take from it. It’s quite deep from that perspective. Yesterday it was gloomy, and the rain was torrenting down here in Brisbane, and Green Mile is a great movie to stick on in that sort of weather.

If you could live in any decade or era, which would you choose and why?

Probably the 1920s. People came out of the great war, they started to get things sorted out, then the recession hit. There were a lot of issues and a lot of hardship, but there was also a lot of prosperity, and they got through it. There was also a lot of pizzazz – jazz blew up, and it just looked like a really fun time among the hardship. It looks like they made the most of it.

thedcn.com.au

Image supplied

What is your job and what does it involve?

I’m the general manager – East Coast for Engage Marine. I look after the whole east coast operations stretching from Bowen in Queensland down to Port Latta in Tasmania, and Whyalla in South Australia. I’m based in Brisbane, where I am a member of the executive committee to help guide the business forward and make sure we move it in line with our guiding principles. We always make sure we have an open communication channel with the crew, so they can come and talk to us any time.

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