DCN Magazine December 2022

The voice of Australian shipping & maritime logistics

Women in maritime

needs to face the problem of intolerance before it reaps the benefits of diversity, Jillian Carson-Jackson says

Industry opinion MIAL looks at how training skilled seafarers can alleviate a domestic maritime labour shortage

The grill DCN caught up with Port of Brisbane project engineer Diana Geaboc

From the editor

A highlight of this past month – and indeed the year – was the DCN Australian Shipping & Maritime Industry Awards, held in Melbourne this year. These annual events are important opportunities to share a meal and some drinks and recognise those of us who went above and beyond over the past year.

And what a year it was. We summarise some of the big stories in this issue starting on page 32. Participants in all three of these stories were recognised in last month’s awards ceremony.

And another important story of 2022 unfolded over the week following the awards. Towage company Svitzer announced it would lock out its maritime employees – protected industrial action that was part of protracted negotiations for a new enterprise bargaining agreement. A summary of the story can be found on page 8, and more detailed reporting is hosted on our website.

These events have shown, yet again, that the enterprise bargaining system in Australia is preposterous. No one party – union or company – should be able to threaten the economic wellbeing of the entire country in an effort to move enterprise agreement negotiations forward.

The Fair Work Commission quite rightly didn’t allow the lockout to proceed. But by suspending the industrial action, it kicked the problem down the road. I don’t think anyone would be surprised if industrial action on the tugs started up again in May.

Ian Ackerman Editor, Daily Cargo News

Publisher

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A thanks to all for a successful 2022 awards from the DCN team

COVER IMAGES James Morgan

MAJOR HOST SPONSOR SPONSORS

Watch the video highlights from the 2022 awards night

Logistics is our world

EES Shipping is the trusted name in Freight Forwarding, offering industry leading experience and knowledge, combined with the care and commitment that comes from being a second-generation family-owned business.

“In a crowded field of worthy candidates EES Shipping stood out for its focus and dedication to relationship building and communication with its clients and stakeholders during these very difficult times.”

“EES was recognised for its innovative workflow procedures, professional reach and an industry reputation as a company that gets the job done, no matter what.”

News in brief

Full details at thedcn.com.au

Svitzer announces lockout, FWC issues suspension

Svitzer Australia announced on Monday 14 November that it would lock out its 582 maritime employees starting at midday the following Friday.

The move was in response to increasing instances of industrial action notified by the unions (AIMPE, AMOU and MUA) as part of protracted enterprise bargaining agreement negotiations.

On Friday, the Fair Work Commission issued an order suspending all protected industrial action (including Svitzer’s lockout) for six months, ending the disruption for now.

These negotiations have been ongoing, and acrimonious, for years. The previous agreement expired in 2019, and the parties have been in negotiations since.

The agreement covers harbour towage operations at 17 ports across the country, including the major container ports of Fremantle, Adelaide, Melbourne, Botany and Brisbane. Among these ports are also the important bulk ports of Newcastle, Kembla, Geraldton and Port Pirie.

The lockout would have ceased all towage activity in all of these ports (as Svitzer has a 100% share of the towage market in them) except for Port Botany (where it has a 69% market share) and Port Jackson (where it has a 59% market share).

In a written submission to the Fair Work Commission the company said no alternative towage provider is available for the 14 ports where it has a 100% market share.

Svitzer said during the negotiations period, the unions notified of more than 1100 instances of protected industrial action. The company said there had been 75

meetings for negotiation, including with the assistance of two Fair Work Commission conciliators and one with an independent third-party mediation process.

Svitzer said the sticking points in the negotiations have to do with “sensible areas essential to the future sustainability and competitiveness of our business, and to meet the productivity and flexibility needs of our customers and port operations”.

MUA national secretary Paddy Crumlin said Svitzer’s bosses have been “held to account” by the commission.

“Svitzer have demonstrated they are reckless and negligent in their management of a near-monopoly at seventeen Australian ports,” he said.

Mr Crumlin said the three maritime unions had sought to negotiate and

bargain in good faith for more than three years, but Svitzer management “thwarted” their efforts.

Mr Crumlin said tugboats are an essential link in Australia’s supply chain, operating 24 hours a day, seven days a week.

“Their work is highly-skilled, often dangerous, and crucially important to the prosperity and security of our nation,” Mr Crumlin said.

“That’s a responsibility that these workers and their families take very seriously, and it’s why the limited industrial action they had been taking was always low-impact, administrative action rather than lengthy work stoppages. So the proposed lockout by bosses was always a completely unreasonable and extreme overreaction by Svitzer and it couldn’t be allowed to go ahead.”

An industrial dispute between Svitzer and maritime unions came to a head this past month

Ian Ackerman; Abby Williams

Newcastle welcomes Shofu Maru

Port of Newcastle welcomed the world’s first ship equipped with a Wind Challenger hard sail on 24 October.

Bulk carrier Shofu Maru called Newcastle as part of its maiden voyage from Japan, drawing plenty of attention with its futuristic retractable sail system.

A crowd of port community representatives, Mitsui OSK Lines delegates and local media gathered at Nobby’s Lighthouse overlooking the port to watch the arrival.

MOL and Oshima Shipbuilding developed the Wind Challenger for the cargo vessel.

The system was designed to help ships harness wind as a sustainable energy source. The sail expands and retracts vertically using AI technology, which senses the strength and direction of the wind.

MOL expects the Wind Challenger to reduce greenhouse gas emissions by around 5% on a voyage from Japan to Australia, compared to a conventional vessel of the same type.

Port Authority of NSW CEO Philip Holliday said the state was delighted to welcome the “beautiful and innovative” vessel to its shores.

“ Shofu Maru … will transport coal mainly from Australia, Indonesia and North America as a dedicated vessel for Tohoku Electric Power Co,” Captain Holliday said.

“With its futuristic looking sail, it converts wind energy directly to a vessel propulsion force, using the wind as clean and unlimited source of energy.”

And Port of Newcastle CEO Craig Carmody congratulated MOL for its role in diversifying the shipping industry.

“Their dedication to reducing fuel emissions through innovation should be applauded and encouraged across industry,” he said.

Following the ship’s arrival, a special ceremony was held at the Newcastle Bulk Terminal to offer an even larger crowd a view of the ship at berth.

Shofu Maru arriving at Newcastle

NEW VESSEL FOR NORFOLK ISLAND SHIPPING SERVICE

Neptune Pacific Direct Line has progressed its acquisition of an 80-metre landing craft for its Norfolk Island service.

The new-build vessel is scheduled for delivery from a Malaysian shipyard by late March 2023.

“The vessel has operational flexibility to meet Norfolk Island shipping needs over the long term,” NPDL said.

“The deck is being prepared for a containerised operation including 10 reefer plugs with devanning on board at the anchorage to the lighters.

“Longer term the vessel will have the ability to perform roll-on roll-off operations.”

NPDL said it plans to operate the vessel on a route calling Brisbane, Auckland and Norfolk Island. The service is scheduled to commence in April.

“This is a significant investment and demonstrates NPDL’s long term commitment to servicing Norfolk Island,” NPDL said.

NPDL in September announced plans to commence the first of four barge service sailings between Brisbane and Norfolk Island, beginning in November this year.

It said the service would sail on a 30day rotation until February.

Heavy equipment for $1.8-billion project arrives at Port Kembla

Two transformers weighing more than 118 tonnes each arrived in Port Kembla on general cargo ship AAL Fremantle in November.

They were the first major pieces of electrical equipment to arrive in Australia as part of a $1.8-billion renewable energy transmission project.

In addition to the main tanks of the transformers, 52 crates containing components and accessories were unloaded at the port. The equipment was shipped from China.

The EnergyConnect interconnector project is the largest of its kind in Australia. It involves building a 700-kilometre transmission line extending from Wagga Wagga to the SA border.

NSW Ports commercial and business development general manager Campbell Mason said the project plays a pivotal role in the country’s renewable energy future.

“This significant transmission line will help connect more solar and wind generation into the power grid, reducing carbon emissions and supporting the country’s clean energy transition,” he said.

“We all have an important role to play in actively working toward a better future for the environment, the economy and our society.

“We’re proud to play a part in supporting valuable energy projects such as the EnergyConnect interconnector that will help create a cleaner, greener future.”

AMSA DETAINS AND BANS BULKER

AMS on 11 November banned Panama-flagged bulk carrier Costanza for underpayment of the crew.

AMSA said it boarded the ship in Port of Newcastle on 9 November as part of a routine port state control inspection and to investigate a complaint about underpayment of seafarer wages.

The International Transport Workers’ Federation had lodged the complaint with AMSA after an ITF inspector carried out a random vessel inspection at the port.

AMSA said it found evidence the crew were owed around $108,000 in wages, and that most of the crew’s employment agreements had a salary amount less than the collective agreement for the ship.

AMSA detained Costanza immediately for “serious breaches” of the Maritime Labour Convention 2006.

The ITF said in a statement the ship was detained at the Kooragang 10 wharf at Port of Newcastle.

AMSA executive director of operations Michael Drake said the situation constituted a serious breach of the MLC.

“Taking financial advantage of seafarers in this way is nothing short of exploitation,” Mr Drake said.

The ITF said it found crewmembers aboard Costanza were also denied access to shore leave.

ITF inspector Dan Crumlin, who boarded the ship, explained Covid restrictions that stopped seafarers going ashore in many countries during the pandemic were lifted in Australia almost three months ago.

“There are people on that vessel who we understand have not been off the ship in about 10 and a half months,” Mr Crumlin said.

“We took our findings to AMSA as is the procedure and they have upheld our view and detained the Costanza until those wages are paid.

“We’re looking into why the crew of the Costanza believed – or were told – that shore leave was still banned in Newcastle, when that’s simply not the case.”

AMSA said the seafarers have been paid their outstanding wages and the vessel was released from detention.

Norfolk Island

Two transformers delivered to Port Kembla

Rawdon

Port Botany –building sustainable supply chains

NSW Ports is committed to improving port capacity, efficiency and sustainability. Empty container storage and handling at Port Botany, Australia’s Premier Port, is being enhanced through:

• Construction of a new empty container park, to be operated by MEDLOG, which will add 6,000 TEU of extra capacity

• Creation of more empty container storage capacity by DP World Logistics

• Additional empty container storage capacity and improved truck flows by ACFS Port Logistics

• Encouraging greater two-way loading of vessels through our Empty Container Incentive Scheme

Collectively, these investments will increase empty container storage capacity in Sydney by more than 16,500 TEU – a 26 per cent boost.

LEARN MORE

Containership Rio Madeira loses power off NSW coast

The containership Rio Madeira lost power off the New South Wales South Coast in October, prompting the Australian Maritime Safety Authority to respond with towage assistance.

An AMSA spokesperson told DCN it tasked the specialised emergency towage vessel, Svitzer Glenrock , from Newcastle to provide towage assistance to the stricken vessel.

“The Svitzer Glenrock arrived to the location of the Rio Madeira 75 kilometres south of Narooma at 15:00 AEDT Saturday 22 October,” the spokesperson said.

“MV Rio Madeira advised AMSA the vessel had restored propulsion at 15:25 AEDT, prior to tow connection, and has proceeded under its own power. The ETV Svitzer Glenrock stood by and escorted the vessel.”

The spokesperson said Rio Madeira berthed at Port Botany at 15.30 AEDT on 23 October with the assistance of four tugs.

They said AMSA would be inspecting the vessel regarding the mechanical issues.

A spokesperson for Maersk confirmed that the Hamburg Süd vessel Rio Madeira lost electrical power while at sea on 20 October, and it was able to restore power on 22 October.

The spokesperson said the vessel berthed at Port Botany and technicians from AIS Marine came aboard to investigate the cause of the technical issue.

Singapore-flagged, 5908-TEU Rio Madeira is on Maersk’s Southern Star Service.

In an update to customers, Maersk said, “Due to vessel being delayed into Sydney, vessel will be delay [sic] southbound into New Zealand ports”.

Infrastructure completed at QLD port

North Queensland Bulk Ports Corporation has completed major infrastructure works at the Port of Mackay. The port’s Wharf Five now has a new $4-million western approach deck. The wharf handles cargo such as fuel, dry bulk, as well as break bulk.

Queensland transport and main roads minister Mark Bailey said the state government was proud to support Queensland’s strong trade industry.

“Having infrastructure of this calibre at our state-owned ports means we can expand into new industries and capitalise on the investment made in renewables throughout the region,” he said.

“Because we kept assets like our ports in public hands, it’s the people of Queensland who benefit from this project.”

NQBP chief executive officer Nicolas Fertin said the works were part of a number of infrastructure upgrades at the port.

“Over the past 18 months we’ve invested $1.8 million to expand cargo capacity at Wharf Four, $2.5 million to extend Wharf One and recently completed our new $8.5-million tug berth facility, all aimed at supporting growth and diversified trade,” Mr Fertin said.

“The Port of Mackay is an essential gateway linking Central Queensland to the world, servicing mining and agricultural industries and supporting 2100 trade jobs with goods to the value of around $4.9 billion passing through the port.”

DEAL CLOSED ON SHIP FOR NEW TRANS-TASMAN ROUTE

Kiwi transport and logistics company Move Logistics Group in October completed the purchase of a vessel to be deployed on its new trans-Tasman route.

The vessel, Atlas Wind, is a Malteseflagged geared general cargo vessel with a capacity of 5196 DWT tonnes. According to Move, the vessel can carry “366 containers”.

Its first sailing is scheduled for the fourth quarter of 2022.

Move executive director Chris Dunphy said the company identified a

gap in the market and will provide sea freight access for regional New Zealand and Australian businesses.

“Customer interest and demand has been strong, with several large customers already contracted to use this new transport solution,” he said.

“The new Oceans trans-Tasman service more than adequately meets our internal rate of return, is earnings accretive and will greatly benefit both Move clients and shareholders alike.”

The company said it is in the process of establishing Move Oceans Singapore,

a new Singaporean wholly owned subsidiary to own Atlas Wind

The company expects the new subsidiary to be incorporated in the next two weeks.

In the interim, to facilitate settlement, Christabell Maritime has acquired title to Atlas Wind on bare trust for Move.

Once the incorporation of Move Oceans Singapore is completed, Christabell Maritime – which is owned by Mr Dunphy – will immediately transfer ownership of the Atlas Wind to Move Oceans Singapore.

Svitzer Glenrock crew via AMSA; NQBP

Wharf 5 at Port of Mackay

Rio Madeira approaching Port Botany

Freight train derailment in Geelong

A freight train derailed in Victoria on 14 November, leaving a pile-up of damaged shipping containers on the tracks.

The incident occurred between at Inverleigh, 30 kilometres west of Geelong, at around 0530, when wild weather was battering Victoria.

The Australian Transport Safety Bureau said the derailment involved a number of wagons from a mixed freight train from the main line west of Geelong.

No one was injured, but the incident caused damage to wagons and track infrastructure. The Melbourne-Adelaide rail corridor was closed as a result.

“The service derailed with containers displaced on both sides of the track and some within an adjoining paddock,” an Australian Rail Track Corporation representative said.

“There were no injuries to the train crew and there were no dangerous good containers impacted by the incident.”

ARTC said its response crews were on site on Monday, with emergency services also in attendance.

The Australian Transport Safety Bureau took control of the site and launched an investigation into the derailment.

ATSB Chief Commissioner Angus Mitchell said the Chief Investigator, Transport Safety would deploy a team of investigators to the accident site to collect evidence.

“Investigators will survey the site and collect any relevant components for further examination and analysis,” Mr Mitchell said.

Contract awarded for Westport supply chain project

Engineering consulting firm WSP Australia was awarded the contact to lead the Supply Chain Integrated Design project for the new terminal at Westport.

Under the $15.2-million contract, WSP plans to model and refine design options for the new terminal, as well as the supporting road and rail network.

Westport is an initiative of the Western Australian government. It involves investigating, planning and building a port in Kwinana, south of Fremantle.

WSP’s contribution to the project is expected to involve development of the Westport business case and informing future investment decisions.

Ports minister Rita Saffioti said the work undertaken by WSP Australia would help the government better understand options for the new port and its landside infrastructure.

“Globally, it is rare to plan and optimise the whole supply chain, rather than focus on only building or improving part of it,” Ms Saffioti said.

“Westport’s supply-chain approach will ensure real benefits for the state in the long term and I’m proud that it is our approach.”

Ms Saffioti said container trade at Fremantle is expected to at least double by 2050 and by 2070, trade volumes could be three to five times higher than what they are now.

And, under a high-growth scenario, throughput at Fremantle Port could be as high as 3.7 million containers per annum by 2070, compared with the 792,000 containers that were moved at the port in 2021-22, according to the government.

“That’s why we’re undertaking work now to prepare and plan for a new port that will meet the needs of our state for decades to come,” Ms Saffioti said.

ONE-TONNE COCAINE HAUL INTERCEPTED AT PORT BOTANY

Australian Border Force officers seized more than a tonne of cocaine from two shipping containers at Port Botany in November.

ABF officers on 9 November found about 550 kilograms of cocaine inside each container, with a combined total of 1.1 tonnes. Police estimate the value of the drugs to be $440 million.

The first container was marked as containing 20 pallets of rat poison and insecticide. It was sent from Basel, Switzerland to a business in Macquarie Park, NSW via Port of Balboa, Panama.

The ABF said its officers removed 11 packages wrapped in plastic from the front row of pallets in the first container.

The packages contained duffle bags filled with blocks of cocaine. Each bag weighed 50 kilograms.

Later that day, the ABF intercepted a second container declared as containing plastic articles sent from Texas to Norwest in NSW.

Like the first container, it contained 11 packages containing duffle bags, each weighing 50 kilograms and filled with blocks of what is believed to be cocaine.

Judging panel

Jillian Carson-Jackson Chair of the DCN Awards judging panel

Angela Gillham CEO, Maritime Industry Australia

Melwyn Noronha CEO, Shipping Australia

Sue Tomic Chair, Supply Chain & Logistics Association of Australia

Margaret Barbouttis Policy & Operations Director, Ports Australia

Paul Damkjaer CEO, International Forwarders & Customs Brokers Association of Australia

Ian Ackerman Editor, Daily Cargo News

We would like to acknowledge the judging panel, which reviewed hundreds of award nominations from right across Australia. The panel members represent virtually every facet of our industry.

Tony Vinson Head of international freight & logistics, Freight & Trade Alliance/Australian Peak Shippers Association

DAILY CARGO NEWS 2022 AUSTRALIAN

Figures from across the Australian shipping and maritime industry gathered last month to recognise the high achievers and the best of the year – and enjoy an evening of food, drinks and conversation. The DCN 2022 Australian Shipping & Maritime Industry Awards this year was held in Melbourne at the ornate Plaza Ballroom. DCN extends its thanks to all sponsors, including Major Host Sponsor Port of Melbourne, without whom this special event would not have been possible.

This year’s finalists

Liner Trade Award

Australia | South East Asia

ANL, COSCO Shipping, Maersk, ONE, OOCL, Swire Shipping

Sponsored by Victoria International Container Terminal

Liner Trade Award Australia | North East Asia

COSCO Shipping, Evergreen Line, HapagLloyd, Maersk, OOCL, TS Lines Sponsored by Port of Brisbane

Liner Trade Award Australia | North America

ANL , CMA CGM , Hamburg Süd , HapagLloyd , Maersk

Sponsored by Port of Melbourne

Liner Trade Award, Australia | NZ, Pacific Islands & PNG

ANL , COSCO Shipping, Sofrana-ANL, Swire Shipping , ZIM

Sponsored by Liebherr-Australia

Customer Service Award

COSCO Shipping, Evergreen Line, Sinotrans, Swire Shipping, TS Lines, Yang Ming

Sponsored by DP World Australia

Environmental Award

ANL Singapore, Gladstone Ports Corporation, Maersk, Port of Newcastle, TasPorts

Sponsored by Daily Cargo News

Freight Forwarder of the Year Award

All Ports International, DEAN World Cargo, Dyson Logistics, EES Shipping, Globelink International, IFC Global Logistics & Warehousing, Platinum Freight Management, Transolve Global Sponsored by IFCBAA

Bulk & Specialised Shipping Award

AAL Shipping, BBC Chartering, Engage Towage, Svitzer Australia – Port of Brisbane team, United Salvage Sponsored by GeelongPort

Women in Shipping & Maritime Logistics Award

My Therese Blank – Maersk, Andrea Brown – BTi Logistics, Rachael Budd – Transolve Global, Connie Colangeli – Diamond Freight, Kelly Crossley – Transitainer WA, Alison Cusack – Cusack & Co, Kate Delisky – Port of Townsville, Wendy Doran –TasPorts, Sandy Pemasinghe – OOCL, Dijana Virgiotis – All Ports International, Deanne Withers – All Ports International Sponsored by BHP

Customs Broker of the Year Award

3DL Customs & Consulting, All Ports International, Globelink International, I. H. Hunter, Maersk, Mondiale VGL, Transolve Global Sponsored by IFCBAA

Safety Award

BHP Maritime, BHP Mitsubishi Alliance – Hay Point, Maersk, Modalinta, Patrick Terminals – Brisbane AutoStrad, Port of Brisbane, Rivtow Marine Port Hedland, Darren Ryan – Rightship COO, Southern Ports, Subsea, Svitzer Australia – PNG team, Corey Walton – Port Superintendent, Milner Bay, South32, Victoria International Container Terminal Sponsored by Daily Cargo News

Seafarers Welfare Award

Australian Mariners Welfare Society, Cusack & Co, Flying Angel Club, Fremantle, Catherine Hindley – Wave Shipping, Hunterlink, Michael Kelly – Port Authority of NSW, Mission to Seafarers

Newcastle, Mission to Seafarers Sydney, North Queensland Bulk Ports – Stella Maris Mackay, Port of Newcastle, Seafarers Anchor, Benjamin Skulthorpe –ASP Ships, Christine Smith – MTS Centre, Newcastle, Southern Ports Sponsored by Australian Maritime Safety Authority and Department of Infrastructure, Transport, Regional Development, Communications and the Arts

Maritime Services Award

AMS Group, BHP Towage Services, Engage Towage – MV Portland Bay, Maritime Safety Queensland – South East Queensland Flood Response, Maritime Safety Queensland, Poseidon Sea Pilots & Svitzer Australia – CSC Friendship, Capt. Peter Murday, Svitzer Australia – Port of Brisbane team, Svitzer – MV Portland Bay Sponsored by NSW Ports

Supply Chain Innovation & Technology

Cusack & Co, ImpexDocs, Inbound, Innovez One, Maersk, Malec Terminal Logistics, NavLab, NSW Ports, Ofload, Patrick Sydney AutoRail Terminal Sponsored by MIRRAT

Young Achievement Award

Capt. Ian Anderson, Lina Maria Corrigan – Maersk, Daniel Grech – BHP Mitsubishi Alliance, Bernadette Habkouk – NavLab, Jayme Lawson – Victoria International Container Terminal, Ruby Peterlin – Port Authority of New South Wales, Kyal Randazzo – Pilbara Ports Authority, Doreen Vrankar – Globelink Sponsored by The Merchant Navy War Memorial Fund

Port or Terminal of the Year Award

Brisbane International Cruise Terminal, Patrick Terminals – Sydney AutoStrad, Port of Newcastle, Port of Newcastle –Bulk Handling Operations, Port of Port Hedland, Southern Ports Sponsored by Svitzer Australia

Diversity & Inclusion Award

AMS Group, Australasian Marine Pilots Institute, Cusack & Co, Maersk, Nautical Institute – South East Australia Branch, Patrick Terminals – WILpower Program, Port Authority of NSW, Ports Victoria, Smartship Australia, Smit Lamnalco Sponsored by Port Authority of New South Wales

Offshore & Specialist Ships Australia donated several ship models for display at the event

2022 WINNER OF THE DCN CUSTOMS BROKER OF THE YEAR AWARD

Maritime Hall of Fame

INDUCTEE Teresa Lloyd

Teresa Lloyd had been at the helm of Maritime Industry Australia Limited for nearly two decades, taking on important issues in the maritime industry and helping Australian businesses become players in global shipping.

Ms Lloyd led MIAL with conviction, advocating for improvements in maritime policy that would encourage growth and regeneration of an Australian maritime industry.

Most recently, MIAL has been a driving force in the government’s establishment of a taskforce to work on developing a national strategic fleet to help safeguard Australia’s national interests at sea.

She has also been a great advocate for training of Australian seafarers, calling attention to the lack of opportunities to train and work in the industry and supporting initiatives that address such issues.

Prior to her tenure at MIAL, Ms Lloyd studied naval architecture at AMC, where she was a role model for other young maritime professionals. She held various roles in the Australian maritime industry before joining MIAL’s predecessor in 2003. In that role, Ms Lloyd was the Australian shipowner (employer) representative at the UN International Labour Organization during the MLC adoption. She also chaired the International Chamber of Shipping Environment Sub-Committee from 2006 through 2013.

Mid-this year Ms Lloyd departed MIAL to take up the role of chief strategy and external affairs officer at Carnival Australia and will no doubt bring her acumen, drive and professionalism to that organisation with similar effect.

Newsmaker of the Year

WINNER The crews

Each of these four tugboats and their crews played important roles in keeping the bulk carrier Portland Bay from smashing on the rocks south of Port Botany on 4 July and the ensuing days.

This is certainly not the first time these people have been recognised for their actions over those days. And this newsmaker of the year award is not so much about the news that was made – and this was undoubtedly one of the biggest stories of the year for DCN – this award is about the news that was not made.

Supposing those tugboat crews were unsuccessful, this story would have attracted significant international attention, and for all the wrong reasons – there would have been an environmental disaster, and more importantly, there could have been loss of life.

This incident was very close to being an absolute disaster. And it is for this reason the 2022 Newsmaker of the Year Award went to the crews of the tugboats Diamantina , Martinique , Bullara and Glenrock

of the tugboats Martinique, Diamantina, Bullara and Glenrock

Deniz Kirdar True representing the Svitzer crews and Rob Garrett representing the Engage Towage crews

Diversity & Inclusion Award

WINNER AMS Group

The closure of the sand mine on Stradbroke Island in 2019 delivered a heavy blow to local employment opportunities. The AMS Group engaged with the Minjerribah Moorgumpin Elders-In-Council Aboriginal Corporation to understand their needs and desires for their community. It quickly became apparent that the AMSG pilotage contract into Brisbane Port was well aligned to the Quandamooka People of Moreton Bay and Stradbroke Island and their 25,000-year affinity with the waterways around Brisbane.

In 2022, AMSG committed $3.5 million to a dedicated Indigenous employment scheme specifically to deliver 40 FTE positions for the Quandamooka, with certification and training to provide valuable, practical experience that they need to succeed in the maritime industry well into the future.

The judging panel was particularly impressed with AMSG’s initiative and were very pleased to award them the 2022 Diversity and Inclusion Award.

HIGHLY COMMENDED Nautical Institute South East Australia Branch, Patrick Terminals – WILpower Program

A Highly Commended award in this category was awarded to the Nautical Institute South East Australia Branch for its commitment to partnering with individuals, companies and organisations such as AMPI to deliver knowledge, mentoring and networking opportunities.

Also Patrick Terminals WILpower Program was awarded a Highly Commended award for the launching of its third Women in Logistics Program, a two-year management leadership program for females, this time with an engineering focus.

Port

or Terminal of the Year Award

Terminals

The Patrick Sydney AutoRail terminal is the result of a significant investment of $190 million between NSW Ports and Patrick Terminals to drive efficiencies through the Patrick Port Botany terminal and support the NSW government’s strategy to increase freight on rail.

The outcome of the project has seen the delivery of the Patrick AutoRail – the world’s first automated rail terminal that now seamlessly connects the automated rail operations via fully automated gantry cranes, connected with automated straddles, directly to and from the quay line.

The innovative achievements of this project are significant, including an increase in TEU capacity from 250,000 to 500,000 (with construction in progress to increase capacity to 1 million TEU on rail); alleviating congestion in the truck exchange by removing the rail cargo from the grids; and helping to drive the modal shift of freight from road to rail to help take trucks off busy Sydney roads and deliver environmental benefits in reduced truck carbon dioxide emissions.

HIGHLY COMMENDED Southern Ports

Highly Commended in this category goes to Southern Ports, which has undertaken a transformation of its operations, particularly at Esperance Port, through the testing and implementation of SMART port and future port initiatives.

Using ISO 55000 as the digital transformation platform, Southern Ports is building a resilient business strategy with assets being a key focus – building reliability and futureproofing assets to underpin improved performance and return on investment.

Representatives from AMS Group and, second from right, Phil Holliday of the Port Authority of New South Wales, award sponsor

Sponsored by Port Authority of New South Wales

WINNER Patrick

– Sydney AutoStrad Sponsored by Svitzer Australia

Above: Kurtis Stone, Nathan Beves and Matthew Kidman of Patrick Terminals

Right: Robert Alexander of Southern Ports with Ivan Spanjic of Svitzer, award sponsor

Young Achievement Award

WINNER Ruby Peterlin (Port Authority of NSW) Sponsored by The Merchant Navy War Memorial Fund

Ruby Peterlin is a 19-year-old First Nations woman from Port Kembla in the Illawarra. She commenced an indigenous female traineeship program with the Port Authority of NSW in 2021, straight from school. Within 12 months Ruby had become fully trained – and the first-ever female port officer in Port Kembla.

The following year, Ms Peterlin was awarded the TAFE NSW Gili Award for the 2022 Supply Chain and eCommerce Student of the Year. She has just completed her Master 5 and MED 3 qualifications and now aims to undertake a Master 4 and MED 2 next year.

With so much enthusiasm towards the maritime industry, Ms Peterlin is paving the way for others to follow, whether they be women, Indigenous or the youthful. Among her extraordinary attributes this also makes her an outstanding role model and a worthy winner of this year’s Young Achievement Award.

HIGHLY COMMENDED Joint winners were Lina Maria

This year two highly commended certificates went to Lina Maria Corrigan from Maersk and Kyal Randazzo from Pilbara Ports Authority, both of whom were considered outstanding candidates.

Supply Chain Innovation & Technology Award

WINNER Ofload

Shippers, carriers and ports reflect some of the key components of the supply chain industry and inefficiencies, waste and emissions are a huge but unfortunately common factor.

Ofload’s digital, cloud-based program is a centralised road freight platform – designed to support the resilience of small to medium sized transport companies while reducing carbon emissions – by managing shipments via the matching of freight requirements to suitable transport companies, eliminating unnecessary waste by ensuring trucks travel full, thereby decreasing congestion on roads and at ports.

HIGHLY COMMENDED Inbound, Maersk

The judging panel this year awarded two highly commended certificates in this category, and they went to Inbound for its innovative web-based truck appointment system and Maersk for its Emission Dashboard that helps to consolidate and monitor emissions data across all carriers and transport modes.

Corrigan (Maersk) and Kyal Randazzo (Pilbara Ports Authority)

Sponsored by MIRRAT

Ruby Peterlin, winner of the 2022 Young Achievement Award

Ofload team: Sean Baldwin, Sandra Perrett-Jones and Aaron Mato of MIRRAT

Rick Frankel and Luke Duffy of Inbound and Aaron Mato of MIRRAT, award sponsor

LOGISTICS IS IN OUR DNA

Finding efficiencies and innovative ways to optimise performance across logistic networks is a challenge we’ve been helping clients overcome for over 16 years. That’s why Transolve Global’s dedicated team of experts is committed to working closely with every customer: understanding your goals, providing expert advice along the way, and solving problems before they arise. Our team is equipped to deal with all the details – and the unexpected challenges – that occur along the way.

Highly Commended for Freight Forwarder of the Year

CEO, Rachael Budd was awarded the 2022 Women in Shipping & Maritime Logistics Award

Transolve Global is proud to have been recognised at the at the 2022 Shipping & Maritime Industry Awards

Scan the QR code to watch a video interview with Rachael Budd

Maritime Services Award

In early July of this year the bulk carrier MV Portland Bay experienced engine problems and lost power in severe weather conditions shortly after leaving the coast of Port Kembla. With 21 crew, 1000 tonnes of fuel and drifting towards the cliffs of the Royal National Park, there was a huge risk of life and severe environmental damage.

What followed was an extraordinarily hazardous and courageous multi-agency rescue and response. In appalling weather with dangerous seas, Engage Towage’s Diamantina held the vessel on its own for several hours before being joined by the Martinique and Svitzer Australia’s Bullara. These three tugs then experienced significant challenges trying to stabilise and tow the vessel to deeper waters including numerous tow line breaks.

Plans to tow it further were suspended and then Svitzer’s Glenrock was called into action, sailing for 13 hours from Newcastle straight into a 10-metre swell. Ultimately the tugs were able to safely tow the vessel into Port Botany nearly three full days since the vessel lost power, albeit conditions still had the potential to force the recovery to be abandoned.

Each of the tug crews did an exemplary job to keep the vessel safe, away from the coastline and prevented an environmental disaster, all in incredibly difficult conditions, and it was on this basis that the judges saw fit to recognise them all as winners of the 2022 Maritime Services Award.

Seafarers Welfare Award

HIGHLY COMMENDED Maritime Safety Queensland (South East Queensland flood response), Maritime Safety Queensland, Poseidon Sea Pilots & Svitzer (CSC Friendship)

After very significant deliberations, the judging panel awarded Highly Commended certificates to Maritime Safety Queensland for its South East Queensland Flood response and to the combined MSQ, Poseidon Sea Pilots and Svitzer Australia team effort for the rescue of CSC Friendship in the Brisbane River flood.

MSQ was recognised for its swift and professional response when the February-March 2022 floods meant the Brisbane River became particularly treacherous quickly.

The collaborative and determined efforts by MSQ to respond to this major weather event prevented potential significant safety, economic and environmental impacts.

An additional Highly Commended award was given to the team effort from MSQ, Poseidon Sea Pilots and Svitzer Australia for their actions when the laden 185-metre tanker CSC Friendship parted lines, broke away and grounded in the Brisbane River during the same floods. This effort in the face of extreme adversity was testament to the highest traditions of professionalism in the maritime industry.

Amongst a field of worthy and outstanding candidates, Catherine Hindley from Wave Shipping was awarded for her commitment to ensuring the best possible outcomes for the seafaring community as well as maintaining health and safety standards for the wider community.

Recognising that many of the shipping agency services placed crew welfare matters in the toohard-basket, Catherine through a range of efforts and initiatives became a relentless advocate for crew services and welfare issues, earning recognition amongst ship owners and crewing companies, as well as government agencies and medical services that she has engaged with along the way.

HIGHLY COMMENDED Flying Angel Club, Fremantle, Hunterlink

Highly Commended awards in this category go to the Flying Angel Club, Fremantle and Hunterlink.

The Flying Angel Club, Fremantle responded outstandingly

to the crisis affecting all missions and seafarers despite a skeleton staff; while Hunterlink was recognised for its outstanding level of service, care and compassion.

WINNER Catherine Hindley (Wave Shipping)

Sponsored by The Australian Maritime Safety Authority and the Department of Infrastructure, Transport, Regional Development, Communications and the Arts

WINNER Engage Towage (MV Portland Bay response), Svitzer Australia (MV Portland Bay response)

Sponsored by NSW Ports

Representatives from Engage Towage and Svitzer Australia, with Marika Calfas (second from left) of NSW Ports, sponsor of the Maritime Services Award

Winner Catherine Hindley (left) with Dr Michelle Grech of AMSA

Safety Award

Lashing is estimated to account for 40% of container port injuries and even higher in automated terminals. SafLash is a new container lashing concept in development that takes approximately one-third of the time and 20% of the physical effort to lash and unlash a container vessel.

The system can be retrofitted in a single port visit. An on-deck management system in conjunction with wearable technology helps manage fatigue, predict completion times and alerts for safety distance breaches.

HIGHLY COMMENDED Rivtow Marine Port Hedland Svitzer (PNG team)

RivTow Marine Port Hedland was highly commended for developing and initiating its “Master-Incapacitated” training program; while the Svitzer (PNG Team) was highly commended for the development and implementation of its innovative offshore hook system.

Women in Shipping & Maritime Logistics Award

Rachael Budd has grown Transolve Global from a one-woman startup into a global freight forwarding force, leading a team that spans Australia, USA, New Zealand and Europe. With such comprehensive knowledge and experience of the freight forwarding industry, combined with her passion for exceptional customer service, Ms Budd thrives on continuing to be involved front and centre in her business.

An accomplished professional with extensive experience across the food, industrial and mining sectors, Ms Budd has cultivated a market-leading corporate culture which always strives to deliver optimal strategies and client outcomes.

Customs Broker of the Year Award

Mondial VGL was considered the clear winner in this category given its continuous drive for innovation and best practice, its commitment to personal and professional development and genuine enthusiasm and care for clients leading to successful outcomes for all.

HIGHLY COMMENDED All Ports International, I. H. Hunter

Highly Commended awards in this category go to All Ports International for exceptional professionalism and I. H. Hunter for its superior customer service.

However, not only is she passionate about being an advocate for Transolve’s customers, and the freight forwarding industry as a whole, Ms Budd is simultaneously an ardent advocate for gender equality in the workplace.

She knew women were missing out on senior industry roles due to a lack of pipeline planning and management. To overcome this, Ms Budd has cultivated an internal pipeline that enables her team to experience different facets of the business and receive ongoing development opportunities to become viable candidates for senior roles at Transolve Global and beyond.

HIGHLY COMMENDED Connie Colangeli (Diamond Freight), Kate Delisky (Port of Townsville)

Highly commended in this category is Connie

of Townsville.

Colangeli from Diamond Freight and Kate Deliski from Port

WINNER Rachael Budd (Transolve Global)

Sponsored by BHP

WINNER Mondiale VGL

Robin Bean of Modalinta

Rachael Budd and Megan Levy of Transolve Global

Sponsored by IFCBAA

Sharni Knox of Mondial VGL with Brad Leonard of IFCBAA, award sponsor

WINNER Modalinta

Bulk & Specialised Shipping Award

WINNER AAL Shipping & United Salvage

Sponsored by GeelongPort

In January 2022 two tugs in the port of Devonport were sunk, having been struck by a cement carrier, creating a major environmental and pollution hazard, as well as blocking normal port operations and vessel movement.

AAL Shipping’s heavy lift vessel the AAL Melbourne – and United Salvage as the salvage and environmental support specialist –worked in tandem with various stakeholders, including TasPorts, to complete an intensive oil-spill recovery followed by a complex salvage operation of the two sunken tugs.

Freight Forwarder of the Year Award

WINNER EES Shipping

Sponsored by IFCBAA

In a crowded field of worthy candidates EES Shipping stood out for its focus and dedication to relationship building and communication with its clients and stakeholders during these very difficult times.

“Someone who just gets it done, no matter what” was a familiar refrain from satisfied customers, together with a clear commitment to employee development, all of which helped make EES a worthy winner of the award.

Right : Sue Tomic of SCLAA on behalf of Dyson Logistics, and Rachael Budd of Transolve Global

HIGHLY COMMENDED Dyson Logistics, Transolve Global

Transolve Global was rewarded for being continually innovative, improving and optimising supply chains to achieve better outcomes for its diverse customer base. Dyson Logistics

was recognised for its unwavering commitment to its local clientele on NSW’s Central Coast while still continuing to grow their international freight forwarding business.

HIGHLY COMMENDED BBC Chartering Australia

BBC Chartering Australia again featured very strongly in this category and was particularly acknowledged this year for its speed of response, flexibility and ability to operate in ecologically sensitive zones.

Natalie Lu and Amanda Bradfield of EES Shipping

Drew Shannon of United Salvage, Brett Winter and Captain Melwyn Noronha of Shipping Australia on behalf of AAL Shipping

HIGHLY COMMENDED ANL Singapore, Maersk

This year ANL Singapore completed the first biofuel powered containership sailing in the Australia and the Oceania region, yielding up to circa 20% saving in carbon emissions. Meanwhile Maersk was recognised for having ordered 13 new vessels to be powered by green methanol and taking a leadership role in decarbonising global supply chains.

Environmental Award

WINNER Port of Newcastle

Biodiversity is a key element of Port of Newcastle’s ESG strategy and for over 20 years PON has been working with the University of Newcastle and other stakeholders in enhancing biodiversity through the Green and Golden Bell Frog Kooragang Island project.

Through long-term remediation works, landform shaping and water management, the project has allowed the GGBF population to survive and thrive without compromising the economic viability of the industrial activities on the island, proving that industrial activity can work in unison with nature.

Customer Service Award

WINNER TS Lines HIGHLY COMMENDED Evergreen Line, Yang Ming Sponsored

by DP World Australia

Matthew Stephenson from Port of Newcastle accepts the Environmental Award from DCN ’s Ian Brooks

Right: Kylie Frasier of Maersk and Kristen Richardson of ANL

Left: A group from TS Lines’ agency Seaway, with Mark Hulme (right) of award sponsor DP World Australia

Bringing resilience to the supply chain through Investment and Innovation.

Investment

More than $800 million in infrastructure over the past 5 years. New technology, new equipment, and new capability.

Innovation

Home to Australia’s largest ship-to-shore cranes and the world’s first AutoRail.

David Pratt of

A WILD RIDE

Tugs assisting Portland Bay on 4 July 2022

The swollen Brisbane River in February 2022

If there is one news story from this that will be talked about for years to come, it will be the Portland Bay incident, which played out just south of Port Botany in early July.

The Portland Bay story was one of danger, heroism and disaster averted.

On the morning of Monday 4 July, the bulk carrier was in imminent danger of grounding on the rocks of the Royal National Park, south of Botany Bay.

The vessel had lost power after leaving Port Kembla the previous afternoon, and over the course of the night drifted perilously close to the rocks.

The tug Diamantina arrived at about 10 am and over the next four hours the tug, its crew and the crew of the Portland Bay kept the ship from smashing on the rocks, even as it inched towards the shore over the course of the morning.

After four hours, the Diamantina was joined by tugs Bullara and Martinique

The three tugs then, over the night and into the morning of Tuesday 5 July, attempted to pull Portland Bay out to deeper and safer waters, but a parted tow line on Bullara put an end to that plan.

In the meantime, the tug Glenrock had arrived from Newcastle and joined the effort to keep the bulker safe.

It was then decided by those co-ordinating the rescue efforts at the Port Authority of NSW’s offices at Port Botany to bring the ship to Bate Bay, just off Cronulla, where it dropped anchor.

On Wednesday 6 July Portland Bay was towed safely to a berth at Port Botany, where it remained until repairs were carried out and it was able to proceed.

In the days following the incident, praise for the heroic efforts of the crews on the tugs and the ship came from many quarters.

Federal minister for infrastructure and transport Catherine King said thanks to the efforts of the mariners, tug crews and rescue crews, disaster was averted.

The tug crews involved in the rescue received many well-deserved accolades, including the Newsmaker of the Year Award and the Maritime Services Award at the DCN 2022 Shipping & Maritime Industry Awards.

ALLISION IN DEVONPORT

And another big story commenced on 28 January, when Australian-flagged cement carrier Goliath sailed into Tasmania’s Port of Devonport. It did not stop. The 15,599-DWT ship crashed into two berthed tugboats and sunk them.

York Cove and Campbell Cove would spend the next seven months at the bottom of the Mersey River.

OIL SPILL

Damage caused to the TasPorts tugs resulted in an oil spill and urgent efforts to curb the risk of environmental disaster.

The Environmental Protection Authority deployed oil-spill recovery equipment, and the day after the

allision, the EPA said it had removed about 10,000 litres of spillage from the river. Even after the incident site had stabilised, another 10,000 litres of inaccessible diesel and oil remained inside the structurally unsound wrecks on the river floor.

“This is evidenced by a continual release of oil pollution from within the wrecks that is being managed with daily skimming operations and contained within an oil spill containment boom,” TasPorts said in an update.

TasPorts later said an estimated 60,000 litres of fuel had been spilled into the river. The environment remained a priority as TasPorts shifted focus to removing the wrecks.

WILD WEATHER

TasPorts tasked United Salvage with the wreck removal job. Specialist barges were deployed and expected to commence salvage operations in midApril. Receiving barge Intan left from Newcastle and reached Devonport in May, but the lifts would not commence until crane barge St Vincent made the journey from Brisbane.

But St Vincent never arrived. Severe weather on the east coast disrupted the voyage, and the barge returned to Brisbane. More bad weather delayed a second attempt to move St Vincent down the coast. With further delays expected, heavy-lift ship AAL Melbourne was tasked with the lift instead.

Frank Mueller, general manager of AAL Shipping Australia, told DCN the project had an interesting set of challenges. For example, the operation could not interfere with the shipping schedule.

“Devonport is a lifeline for Tasmania with ferries bringing in people several times a day,” Mr Mueller said.

“It is also an extremely busy cargo port, handling three million to four million tonnes of freight annually. Therefore, we had to work around traffic, weather and tides to ensure the operation ran as smoothly as our engineering department planned it, in consultation with United Salvage and all other stakeholders.”

Markus Gebauer; Rob Burnett

AAL Melbourne lifts York Cove

A DIFFICULT LIFT

York Cove was pulled from the river in early August. However, Campbell Cove was in an unbalanced position, and TasPorts chief operating officer Stephen Casey said it was “unsafe and near impossible” to lift the tug onto AAL Melbourne. The tug was returned to the river floor for a second attempt.

Campbell Cove was removed within a week of York Cove, marking the end of a major operation. The tugs were taken to Brisbane to be scrapped. TasPorts CEO Anthony Donald said more than 100 people had worked on the project over the seven months.

“The salvage work proper was slow and deliberate, and ultimately successful, and reflects the detailed and collaborative planning that was required to complete the work,” he said.

“The company is very pleased to be able to look back on what was a highly successful but complicated salvage exercise.”

FLOODS HALT SHIPPING AT BRISBANE

When a so-called “rain bomb” dropped on South East Queensland early this year, Port of Brisbane faced more than bad weather; it had to manage a river swollen with floodwaters and debris washing downstream from a submerged city.

The rain began in late February and continued relentlessly over a week. Strong currents and turbulence formed in the Brisbane River, which flows through the city and past the port to meet the sea.

On the night of 27 February, during flooding and increased ebb flow on the Brisbane River, oil tanker CSC Friendship broke away from the Ampol Products Wharf and ran aground at nearby Lytton Rocks Reach.

OPERATIONS SUSPENDED

Earlier that day, the acting regional harbour master issued a directive restricting all vessel movements due to dangerous river conditions. Shipping at the Port of Brisbane was at a standstill and would remain so for the next five days.

Port of Brisbane’s then-interim chief executive officer Neil Stephens (now CEO) said in a statement there was potential for build-up of sunken objects and siltation in swing basins, berth pockets and in the shipping channel.

“PBPL is working closely with the RHM to deploy survey vessels to determine safe depth of

the navigational areas as well as possible debris obstruction,” Mr Stephens said.

“The speed of the river current and turbidity at the moment is proving challenging in this regard.”

Port of Brisbane deployed survey vessels the next day as Maritime Safety Queensland and the state government mobilised salvage teams to remove debris. The port also deployed its dredge and barge fleet to assist in the port precincts.

MSQ general manager Kell Dillion said the river was “simply not a safe place to be” during the floods.

“A vast amount of water is coming downstream from the upper reaches and carrying all manner of debris, from logs and branches to dislodged infrastructure like pontoons,” he said.

“Added to that we have swift flows and swirling currents combining with tides to make navigation dangerous and potentially deadly.

“Displaced navigation aids are also adding to the navigational difficulty.”

THE FIRST VESSEL MOVEMENTS

Extreme weather in South East Queensland had mostly lifted by 2 March, but Port of Brisbane remained closed. Flood releases from Wivenhoe Dam (inland from Brisbane) added to the strength of the currents even after the rain had eased.

On 3 March, the regional harbour master authorised the first two vessel movements since operations were suspended. Mr Stephens said one tanker was able to depart the Ampol crude berth and another brought in following “extensive planning and simulation”.

He said the harbour master prioritised the vessel exchange to maintain fuel supplies in the region. Movements were carried out under extreme caution.

“It cannot be understated how complex this operation was, nor how important,” Mr Stephens said in an update.

“It is a credit to all stakeholders who took part: the RHM and his Maritime Safety Queensland staff, Svitzer tugs, Ampol, the pilots and the ships’ agents and masters,” he said.

“The RHM is now actively working towards clearing vessels from Fisherman Islands and safely bringing in vessels at anchorage. This process is expected to begin this afternoon but will obviously take time while conditions are continually being assessed to ensure all movements are conducted safely.”

A tanker is cautiously moved at Port of Brisbane

TO & FROM MELBOURNE, SYDNEY, BRISBANE, FREMANTLE, ADELAIDE,

Towards a

more efficient future

A spectre is haunting

maritime and logistics industry – the spectre of innovation. This amorphous idea has been changing the way things work in our industry since time immemorial –but the pace is speeding up now, with digitalisation, visibility and connectivity, Ian Ackerman writes

Innovation is changing the maritime logistics industry whether the industry is ready for it or not. This industry is notoriously reticent to change, but the impetus for innovation and change is coming from several directions outside the industry. Because regulation, efficiency imperatives and customer demands are the drivers of innovation in the industry, it has no choice but to bow to the pressure and embrace the digital innovation wave that has swept through every business and industry over the past several decades.

WHAT IS INNOVATION?

The Macquarie Dictionary describes the verb innovate to mean “to bring in something new; to make changes in anything established”. The word’s origin lies in the Latin innovo – “to renew, restore, alter” – at the very root of the word is change.

In a paper about the definition of innovation, the authors (Anahita Baregheh, Jennifer Rowley and Sally Sambrook) wrote that “innovation is the multi-stage process whereby organisations transform ideas into new/improved products, service or processes, in order to advance, compete and differentiate themselves successfully in their marketplace”.

the

Peter Creeden, MPC International

In our industry a lot of people rely on their guts, and they’re not comfortable using data yet – we have to bridge that gap.

Peter Creeden, MPC International

INNOVATING THE SUPPLY CHAIN: OFLOAD

Australian supply-chain startup Ofload is looking to maximise efficiency by expunging everything in the supply chain that does not create what CEO and founder Geoffroy Henry said is “truly the value of freight”.

“At Oflaod we simply consider that the value of freight lies between the truck and the truck driver – as well as the people loading and unloading the freight,” he said.

He said there is a huge amount of paperwork and manual processes involved in moving freight, and those sitting in offices managing freight are not actually moving the freight.

“If things were perfectly automated, and things were perfectly efficient, and documentation was done digitally, we wouldn’t require any of those layers of complexity or overhead,” he said.

Mr Henry said Ofload aims to co-ordinate the market with itself in the middle as a digital marketplace that connects companies with truck carriers.

Others have been taking note of the importance of the innovation that Ofload is carrying out – the company won the Supply Chain Innovation & Technology Award at this year’s Shipping & Maritime Industry Awards.

The company also recently announced it has secured $60 million in Series B funding, including debt and equity components.

The round was led by Jungle Ventures, Singapore’s largest independent venture capital firm, and featured increased backing from existing investors King River Capital, Bay Grove, Maersk Growth and Foundamental.

Mars Growth Capital, part of the Liquidity Group, delivered the debt financing component, which helps further Ofload’s inorganic growth initiatives, following on from its acquisition of Melbourne freight specialist CIA Logistics in September.

Mr Henry said, “Ofload is pleased to welcome Jungle Ventures as an investor, and we look forward to continuing to grow our offering and service to the Australian freight industry across all corridors very soon.”

Jungle Ventures said Ofload’s unique has potential to increase supply-chain visibility and efficiency across Australia, creating meaningful benefits for both shippers as well as transport operators.

Jungle Ventures managing partner Yash Sankrityayan said, “We are proud to partner with Ofload given their mission to help the large number of SME transport operators serve the demand across the country, and to do so with reliability and technology at every step.

Already the empty loads reduced by Ofload and process transparency are creating positive change for all stakeholders, as well as for the environment.”

Ofload’s digital freight forwarding system matches freight from Australia’s largest companies with transport operators across

Ofload is a digital marketplace for companies and truck carriers

So, innovation is not about technology; innovation is about novelty – new ways of using existing tools.

In the maritime and logistics industry, innovation has taken many forms over its long history. Using a steam engine to propel a ship is one example, as is containerisation. Both these innovations used existing technology in new ways to make carrying freight more efficient.

Peter Creeden, managing director of supply-chain consultancy MPC International, told DCN the shipping industry is not intrinsically innovative.

“The shipping and logistics industry is the most technophobic industry out there,” he said.

Mr Creeden said a major reason for this is that generations of managers and senior managers have been trained to save as much money as possible because the margins in the industry were so thin.

“There’s very little research and development in this industry,” he said.

“That is a problem, that is a serious problem. You’re not going to get innovation if you’re not doing research and development.”

Because of this situation, Mr Creeden said change must be forced on the industry.

He pointed to the sulphur cap that came into force at the beginning of 2020.

“Shipping lines had to react,” he said.

And now another IMO decarbonisation initiative is about to come into force. These new regulations, in short, will grade ships on their “carbon intensity”, giving them a grade between A and E. Only ships rated A, B and C will be able to operate after 2024.

“This is going to put a lot more pressure to change to alternative fuels or more efficient ships,” Mr Creeden said.

“Overall, it’s going to supress any of the older vessels, it’s going to be a speed cap on the industry. The supply chain is going to lengthen – they’re going to add more ships, and they’re going to slow down because of this carbon rating system, and that is a big change. That’s going to force innovation.”

SPECIALISE OR DIE

There is an old analogy about freight forwarders and travel agents. You’ve probably heard it: Freight forwarders are the travel agents of freight. If this analogy is anywhere near true, it does not look good for freight forwarders.

“If you don’t specialise, you die,” Mr Creeden said of travel agencies and freight forwarders. He said if a travel agency does not specialise in something specific – business travel, niche destinations – they’re not going to make any money because everyone can now book their air travel online.

“How are freight forwarders planning to innovate?” he asked. “And how does one let the computers do the job to free up the people to manage the job?”

Mr Creeden said a lack of digital literacy is a big problem in our industry.

Geoffroy Henry, Ofload CEO and founder

To bring people and resources together to build a better world.

“In our industry a lot of people rely on their guts, and they’re not comfortable using data yet,” he said.

“We have to bridge that gap. Hopefully that’s where innovation will come.”

In a 2019 study called Driving Innovation, the Boardroom Gap, the Australian Institute of Company Directors (in partnership with the University of Sydney Business School) found that corporate boards in Australia have low innovation and digital literacy levels.

The report said Australian boards lack critical technical and innovation skills, and need to increase access to specialist advice.

The report does not deal with leadership in the logistics specifically, but Mr Creeden said digital literacy is a significant problem in the industry.

INNOVATING THE SUPPLY CHAIN: INBOUND

Usage of Inbound – a multi-modal, multi-function, multi-facility community vehicle booking and visibility platform – has been expanding across supply-chain boundaries.

Inbound CEO and founder Luke Duffy told DCN the system is being used at sea-freight LCL warehouses, breakbulk and general ports and intermodal terminals, with a pipeline of new facilities in these sectors set to join in 2023.

“As well, the platform is likely to be adopted by other sectors including airfreight terminals, pallet depots and grain packing facilities,” he said.

“Benefits are many and varied, but in essence Inbound removes an enormous, longstanding problem that derives from the random arrival of vehicles at facilities and significantly reduces costs and inefficiency.”

“If there’s no strategy from senior management, the organisation doesn’t follow. A data scientist is only good if they know the right questions to ask,” he said.

“If they’re asking questions that don’t help the business move forward, they’re not helpful in improving the supply chain. There needs to be a balance between supply chain understanding and technology understanding.”

SUPPLY CHAIN VISIBILITY

Hapag-Lloyd this past August announced it would install real-time tracking devices on its entire dry container fleet. The company, which is the fifthlargest container line by capacity (its fleet can carry 1.77 million TEU) according to Alphaliner, said the vast majority of its 1.6 million dry containers would be trackable by the end of 2023.

The internet-of-things (IoT) devices can transmit real-time data on location, temperature and any shocks the container experiences.

A the time of the announcement, Hapag-Lloyd COO Dr Maximilian Rothkopf said his company was the first carrier in the industry to undertake such a comprehensive step towards the digitalisation of container shipping.

“The containers leaving our depots with a tracking device will now be fully visible to us and, in a next step, to our customers as well, whether they are in a warehouse or moving on a truck, train or barge,” he said.

“We believe that the increased transparency has the potential to improve the management of strained supply chains for the benefit of our customers.”

Mr Creeden said this move by Hapag-Lloyd was important (for more than eight years he was managing director of finance and operations at the company).

“They raised their hands and said we’re not just competing with the other shipping lines, we’re competing with transparency platforms like Terminal49, Project44,” Mr Creeden said.

Daniel Wright98; Hapag-Lloyd

We believe that the increased transparency has the potential to improve the management of strained supply chains for the benefit of our customers.

Dr Maximilian Rothkopf, Hapag-Lloyd

Dr

Maximilian Rothkopf, Hapag-Lloyd

Hapag-Lloyd is fitting IoT devices to its entire fleet of containers

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Education

Ensuring that Australia has access to world class maritime education for seafarers, terminal workers and management, McGuire Maritime is at the forefront of tailored maritime course delivery.

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in

“Hapag-Lloyd is telling its customers, ‘why is a third-party company that’s not involved in your transport actually selling you the data on your transport? We’re taking that back, we’re going to give that to you directly.’ That’s how that’s working – that is a big space that’s coming.”

VISIBILITY FROM SPACE

CEO and founder of freight and shipment booking marketplace Shipz Jonathan Kempe pointed to some issues with uptake of visibility technology in the industry.

He said some in the supply chain resist such technology because it would make it easier to assign responsibility in the case of an incident.

He sketched out a hypothetical situation where a container of dangerous goods explodes and sinks a ship.

“If I’m the shipper of these dangerous goods, I want to walk away from that and wash my hands of it. Just as much as the carrier wants to walk away and say ‘we don’t know what happened’,” he said.

“You can’t have unilateral accountability. You have to have an agreement that there’ll be shared

MARITIME INDUSTRY CHALLENGES

Shipping companies seeking to overcome the challenges of the maritime industry would benefit from a strategic approach to connectivity, according to a recent report.

The Network Effect report from communications technology Inmarsat and consultancy Thetius details the business benefits and specific capabilities that shipping companies can access by applying a connectivity strategy across their business IT, crew, and operational networks. These include voyage and port-call optimisation, emissions reduction, condition monitoring and condition-based maintenance, trade facilitation, seafarer welfare and training, remote surveys and pilotage and telemedicine services.

Thetius director of research and consulting Matthew Kenney said against a backdrop of evolving regulatory requirements and increasing emphasis on seafarer welfare, connectivity and data are indispensable to shipping company competitiveness.

“However, simply purchasing data is no longer enough,” Mr Kenney said.

responsibility. And at the moment, if I could put my finger on the dominant paradigm inside global supply chains, there’s a spoken and unspoken rule that that responsibility is demarcated between groups and it’s fluid in terms of who is actually responsible.”

With this resistance to change, new technologies face an uphill battle for implementation, Mr Kempe said.

“But, there are certain technologies that come along that don’t care – and one such innovation is the topdown visibility you get with satellites.”

Over the past several years, low-earth orbit (LEO) satellite constellations have attracted some attention as a way to not only boost maritime communication and data transfer but also monitor the seas.

Mr Kempe set out an example of the ways LEO satellites could help monitor and confirm emissions claims of ship operators.

“If a company builds a vessel that they say is zero, or low-emission, they can tell the press, and the world that it’s clean, and there is no accountability,” he said.

“But satellites sit overhead in an uncontrollable state – they can tell, with the sensors on board exactly how much methane that ship is emitting.”

ARE MET THROUGH CONNECTIVITY: REPORT

“If shipowners are to reap the full rewards of operational optimisation, decarbonisation and a loyal and talented crew the right connectivity strategy is essential.”

According to the report, once a shipping company has established its objectives and identified the capabilities needed to achieve them, it will benefit most from finding the right combination of communication services to best support those capabilities.

By joining the dots between business goals and connectivity options, operators gain access to a host of benefits including opportunities to optimise and drive efficiency, while reducing running costs and improving profit margins; the ability to attract and retain

talented crew; and the capacity to future-proof operations and build in competitive advantages.

Inmarsat Maritime president Ben Palmer said ultimately, a good connectivity strategy relies on a clear understanding of the company’s business goals, the technologies needed to attain those goals, and any additional influencing factors such as resource availability and investment requirements.

“In that sense shipping is no different to any other industry: collecting, collating, analysis and harnessing the value of data relies on resilient, reliable, secure, globally available connectivity services,” Mr Palmer said.

“It is also critical to recognise that implementing a connectivity strategy is a continuous and iterative process that requires constant monitoring, frequent reassessment, and regular feedback from internal and external stakeholders.

As this report makes clear, this is both necessary and highly valuable to modern shipping operations both in terms of driving competitive advantage and addressing decarbonisation goals.”

The need for

Maritime and landside logistics industries have spent the good part of three years burdened by congestion and damaged infrastructure and the weight of an entire global supply chain in disarray. It may be refreshing to look up and see an aircraft soaring above it all, but the air cargo industry has faced its share of turbulence.

THE INTERNATIONAL MARKET

Data from the International Air Transport Association indicates air cargo demand in 2021 exceeded 2019 levels. And, in 2022, the industry is expected to have carried more than 68 million tonnes of cargo, which would be a record high.

However, the latest data suggests air cargo demand is softening. In November this year IATA released its monthly market analysis for September 2022. It found industry-wide cargo tonne-kilometres in September 2022 were 10.6% lower than they were a year earlier. Global air cargo capacity in September this year was 2.4% higher than it was in September 2021.

David Wee, IATA’s regional cargo manager, AsiaPacific, told DCN various factors have contributed to softer air cargo demand.

ground speed

The air-cargo industry has endured the e-commerce boom and a shift from sea to sky when maritime logistics proved too complex, Abby Williams writes

“As most of the world recover[s] from the Covid-19 pandemic, post-pandemic consumer spending habits are likely to lean towards vacation travel more than home shopping via e-commerce,” Mr Wee said.

“High inflation levels and the increasing fear of an economic recession have a negative impact on the global flows of goods and services. The war in Ukraine is also affecting cargo capacity, with a number of air cargo carriers directly impacted.”

A DOMESTIC PERSPECTIVE

Closer to home, Asia Pacific airlines saw air cargo volumes decrease by 10.7% in September 2022 from figures recorded in the same month last year.

According to IATA, airlines in the Asia Pacific region are still being impacted by labour shortages, the conflict in Ukraine, and lower levels of trade and manufacturing activity due to Omicron-related restrictions in China.

Qantas Freight executive manager Catriona Larritt told DCN the international market has become dynamic over the past 12 months, with passenger networks being reintroduced to global destinations. She said the international passenger services are

contributing to greater belly capacity in some markets, but not all.

“Airlines are only gradually returning larger aircraft on routes, and because of this, it is likely the international passenger belly space will remain constrained for some time to come,” Ms Larritt said.

“Even with the return of belly space capacity, the air freight market has changed permanently and the outlook for Qantas Freight is positive.”

AIR FREIGHT IN OVERDRIVE

Demand for e-commerce skyrocketed in March 2020, at the onset of the pandemic. Ms Larritt said disruptions to normal shopping behaviour caused the dramatic increase. She said demand for fast delivery increased reliance on air freight, which resulted in additional volume being added to the domestic air freight market. The industry began using passenger aircraft for freight-only flights.

The freight division’s experience is perhaps best understood in comparison to that of the Qantas group. In August this year, Qantas posted a loss of almost $2 billion for the 2022 financial year. However, the group said heavy losses were offset by a record annual performance in the freight division.

“Whilst the passenger side of the organisation practically shut down overnight, the cargo side went into overdrive and everyone in freight worked extremely hard to service the air freight industry,” Ms Larritt said.

“The extraordinary demand for limited capacity drove yields to their highest levels ever on some routes and helped us provide the result we did, which was very fortunate given the difficult year for the rest of the group.”

Ms Larritt said the Qantas freighter fleet operated additional air freight segments, which delivered a performance that underpinned the division’s results. For example, the international 747 freighter operation connecting Australia, China and the United States continued to fly, capitalising on yields from China where the market experienced an unprecedented period of constraint.

Qantas Freight also supported the Australian government’s International Freight Assistance Mechanism program, leveraging unused passenger aircraft which operated as freight-only services to several key international airports. The government established IFAM in April 2020 to keep supply chains open for Australian exporters during the pandemic. The program ended in July this year.

MEET THE FLEET

Qantas Freight announced the expansion of its domestic freighter fleet in August this year. Two A330 conversions are expected to join the fleet in the second half of 2023, and six A321 aircraft are scheduled for delivery between 2024 and 2026.

Ms Larritt said the expansion was necessitated by several factors. She highlighted a structural change

Qantas Freight saw a rise in e-commerce volumes over the past three years

in demand for capacity based on greater e-commerce activity and a need for faster delivery schedules.

“Customers prefer larger, more efficient, fully containerised aircraft to link their key Australian domestic gateway warehousing hubs as it adds capacity where they most need it to complement their road freight supply chain solutions,” she said.

“The A321 was chosen because it provides a step change in operating efficiencies and the overall emissions profile versus our 737 classic fleet.

“A321s also provide a wholly containerised solution for our freight customers, creating faster load and unload operations and replacing slower, less efficient manual belt-loader processes.

“The 737 classic fleet have been in operation for a number of years and with the increased demand for overnight deliveries, they are no longer suitable as the freight capacity and range are limited.”

FROM SEA TO SKY

Aside from the rise in e-commerce, Ms Larritt said the higher volumes moved across global and domestic supply chains are partially driven by “ongoing uncertainty and instability” in some key shipping lanes.

“The structural shift in air freight demand is primarily the result of permanent changes to consumer behaviour,” Ms Larritt said.

“At the same time, some commodities which need to move across global supply chains have shifted from sea to air freight.”

IATA also observed maritime issues like port congestion have had consequences for airlines. Mr Wee said there tends to be “an inversely proportional relationship” between maritime and air freight.

“When shippers can afford the time, they tend to go by sea freight. But when time is constrained, then air cargo becomes the option,” he said.

“So, when there are maritime issues, air cargo tends to be the beneficiary.”

SHIPPING LINES BUY IN

Shipping lines are acting on the shift from sea to air freight while supply chains are in disarray. Two major shipping companies progressed plans to take to the skies this year. Maersk launched its air freight division in April and celebrated the first trans-Pacific flight in October. In September, MSC Mediterranean Shipping Company also announced the launch of its own air freight service.

A spokesperson for MSC told DCN the company is on track to begin its air cargo operations in early 2023 following delivery of the first aircraft. MSC has tasked Jannie Davel, formerly of Delta Cargo and DHL, with spearheading the new offering and building a team to manage air freight operations.

“It is our intention for the years to come is to develop air cargo solutions in a way that complements our core business of ocean freight shipping services,” MSC’s spokesperson said.

MAERSK EXPANDS INTO AIR FREIGHT

A.P. Moller – Maersk launched its own dedicated air freight division in April 2022 and its first trans-Pacific flight in October.

Maersk Air Cargo stemmed from Maersk’s in-house aircraft operator Star Air, headquartered at Copenhagen airport. Star Air has transferred its activities to Maersk Air Cargo.

Aymeric Chandavoine, global head of logistics and services at A.P. Moller – Maersk, said the company introduced Maersk Air Cargo to increase its presence in the air cargo industry and secure owned, controlled capacity.

“Air freight is a crucial enabler of flexibility and agility in global supply chains as it allows our customers to tackle time-critical supply chain challenges and provides transport mode options for high value cargo,” he said in a statement.

A Maersk executive highlighted the advantages of offering air freight services alongside other transport modes.

“We see an increased and continued demand for air cargo both today and going forward as well as a growing demand for end-to-end logistics, [which is] why it is important for us to strengthen our owncontrolled capacity and advance further on our air freight strategy,” the executive spokesperson said.

The company said it would progressively deploy and operate five aircraft, including two new Boeing 777 Freighter aircraft and three leased Boeing 767-300 cargo aircraft.

A trans-Pacific service launched in October 2022 introduced the first of the three Boeing 767 freighters on a service between GreenvilleSpartanburg, South Carolina and Incheon, South Korea. The service began with two weekly flights.

Michel Pozas Lucic, Maersk’s global head of air and LCL, said the introduction of the new service marked the next step in securing logistics solutions with the company’s own aircraft.

“Next to the new scheduled transpacific flights, we also operate own controlled capacity from Europe into the US, Mexico, South Africa, and Singapore,” he said.

They said the shipping company adapted services to fit market demand during the pandemic, leveraging a global network of road, rail and sea transport resources. They said the move to air freight would help the shipping company overcome maritime-specific issues.

“Supply chain constraints throughout the pandemic demonstrated the usefulness of air cargo as we provide transportation solutions around the world. Developing MSC Air Cargo comes as a further step adding a new dimension to the company.

“In the last few years, there has been volatility in demand for shipping space around the world due to the global pandemic. In addition, lockdown measures and port congestion often posed unprecedented challenges,” he MSC spokesperson said.

Maersk Air Cargo plans to deploy and operate five aircraft

MSC said carriers introduced different services as the market improved, and the company’s investment in air freight is consistent with the trend. It plans to serve key trade lanes and various industries through its air cargo service.

“Like we do for ocean freight we will serve the whole market but at a rather small scale in 2022-23 and we hope to grow thereafter,” the spokesperson said.

“There is healthy client demand throughout the world that is driving demand for air cargo. We remain firmly engaged in this new venture and look forward to providing air transportation solutions that will keep the world economy moving forward.”

THE DIGITAL SHIFT

The air cargo industry’s future is being shaped by three focus areas familiar to the maritime industry: digitalisation, safety and sustainability.

Mr Wee of IATA said consumers are expecting higher commitment to promised delivery times and are demanding transparency around the movement of their goods. The industry is considering these concerns as it undergoes a digital transition.

“There is an increasing need to digitise and integrate data analytics to provide much better traceability and predictability,” Mr Wee said.

“However, adoption of digital solutions has sporadic and non-uniform across the industry due to multiple digital cargo standards. Slower digital adopters will find it increasingly difficult to cope with new and more precise regulatory requirements.”

Ms Larritt said Qantas Freight is using technology to help reduce manual processes and create task-driven

actions for its teams. The division is also launching initiatives for businesses.

“Qantas is also investing in the modernisation of core systems by implementing IBS Software’s iCargo cargo management platform across its entire operations,” Ms Larritt said.

“iCargo is a strategic initiative to future-proof Qantas Freight’s core platform by bringing in the latest cloud technology to transform cargo operations and service delivery.”

Ms Larritt said the division launched its new Capacity and Sales modules in April, to be followed by the delivery of Terminal Operations modules in the second quarter of next year. She said the latter would bring operations under a single, integrated cargo application for business users across Qantas Freight globally.

“This solution provides a seamless interface with partners including general sales agents, ground handling agents, and freight forwarders, simplifying the end-to-end operations,’ Ms Larritt said.

“Enhanced data quality and insights also allow Qantas to make real-time, data-driven decisions across its sales, operations, and finance processes, while enabling its broader digital transformation through the data warehouse and API integration.”

TECHNOLOGY MEETS SUSTAINABILITY

On the sustainability front, Ms Larritt said Qantas Freight is supporting the group’s commitment to net zero emissions by 2050 with a new digital management platform called Dock Direct. She described the platform as Australia’s first all-digital lodgement and collection solution.

Dock Direct’s app-based technology links the Qantas Freight online booking and freight management portal with drivers collecting freight, all using their smartphones.

“By using the app, drivers can view everything they need to collect international shipments, bypassing the front counter and going straight to their allocated dock – reducing wait times and removing paper,” Ms Larritt said.

“Dock Direct has been introduced to remove paper, improve data accuracy and speed up lodgement and collections times and has been successfully rolled out for import collections with more than 85% of drivers already using the app. After a successful pilot program, Dock Direct will be rolling out to international exports in early 2023.”

Qantas Freight has also rolled out Track and Trace, a new scanning and tracking system, across domestic and international operations.

“Designed exclusively for Qantas Freight, the technology is integrated with Dock Direct and allows our operations teams to scan, store and collect freight more easily thereby reducing mishandled shipments and speeding up the collection process,” Ms Larritt said.

Catriona Larritt, executive manager

Qantas Freight

Catriona Larritt, Qantas Freight

Drivers can use the Qantas Freight’s Dock Direct app on their smart phones

“And we’re not just investing in our ground operations – we’re also creating a better, more intuitive digital experience by improving our booking and freight management portal.

“We’ve recently completed a redesign of the domestic booking portal, adding functionality and making it easier to view and select the right product for each commodity.”

Ms Larritt highlighted other initiatives being rolled out across Qantas Freight, such as a new capacity management system to help the division maximise uplift on capacity-constrained routes.

She said Qantas Freight is also working with airport authorities across Australia to develop plans for terminal infrastructures from 2025.

More broadly, Mr Wee said a growing focus on environmental sustainability means the air cargo industry can expect increased costs moving forward.

“Those who delay efforts in reducing carbon emissions globally will miss out on opportunities driven by the ever-expanding environmentally conscious consumer market,” he said.

“Moreover, the focus is no longer solely on green products, but also the impact of business practices and processes on the environment.”

SAFETY

And in terms of safety, Mr Wee pointed to one specific safety challenge the air cargo industry is facing: transportation of lithium batteries.

The issue is shared by the maritime industry; a report from insurers TT Club and UK P&I Club in November this year argued the shipping industry underestimates the danger of lithium-ion batteries. The batteries are found in small devices such as mobile phones, tablets and digital cameras, and also in electric vehicles.

Fires caused by battery failure or thermal runaway are extremely difficult to extinguish. In some cases, incidents can be – and have been – catastrophic.

“There has been an increase in the risk of incidents involving misdeclared or undeclared lithium batteries as a result of the rapid 30% annual growth in global demand,” Mr Wee said.

“IATA continues to advocate for better enforcement of safety regulations for the transportation of lithium batteries. The adaptation of digital solutions will help to operationalise crucial regulations for safer transportation.”

BUILDING OFF THE PAST

Approaching 2023, air cargo industry experts forecast growth in air freight capacity, according to Ms Larritt.

“However, the projections suggest that air freight capacity will not be at pre-Covid levels until 2025,” she said.

Looking back as well as forward, Ms Larritt said Qantas and Australia Post celebrated a centenary of partnership on 2 November 2022. The milestone date marked 100 years since the first Qantas-scheduled service took off across the Queensland outback.

“After two years of planning by founders Hudson Fysh, Paul McGinness and Fergus McMaster, Qantas operated its first scheduled flight over two days in an open cockpit FK8 biplane from Charleville to Cloncurry via Longreach on 2-3 November 1922,” Ms Larritt said.

“A recreation of the inaugural service took place last week using a Dash-8 Q400 aircraft to celebrate what was a defining moment in Australian aviation history and to recognise the innovation and pioneering spirit of our founders.”

Ms Larritt said Qantas has, over the past century, gone from the single biplane flight carrying one passenger and 106 letters to placing orders for aircraft that will link Australia to any city in the world.

“From that first flight with a single passenger and a small bag of letters, Qantas Freight now carries almost 1000 tonnes of freight a day and our freighter network clocks more than 11 million kilometres each year –equivalent to 14 trips to the moon and back.”

When shippers can afford the time, they tend to go by sea freight. But when time is constrained, then air cargo becomes the option.

David Wee, IATA

Air cargo containers transported by Qantas Freight

David Wee, regional cargo manager, AsiaPacific, IATA

Building capacity

Formerly general manager of trade development at Darwin Port, Peter Dummett took the helm as CEO in September, having acted in the role for the previous three months.

He told DCN, “I’m coming up to 11 years at Darwin Port and, as a result, I have a very good understanding of the business potential in the Northern Australian market and will continue to build on the relationships that I have developed over my 20-plus years in the industry to assist in bringing projects to market”.

Mr Dummett began his career serving in the Royal Australian Navy for 20 years. There he developed an interest in commercial shipping. Since then, he has held various roles including a regional development role with Swire Shipping. In this role, he was involved in the promotion of the Northern Territory government’s AustralAsian trade initiative.

Mr Dummett said his immediate task as CEO has been getting the port team back to full strength.

“During and following the pandemic lockdowns, we had postponed backfilling a number of positions as a result of downturns in the areas of bulk exports and cruise activity.

“With these industries now in recovery mode, we have filled most of our vacant roles.”

He said his experience with both international and coastal shipping companies has given him a “great understanding of what our business needs to provide to achieve cost effective and efficient services”.

“For the most part, a port’s customers are the shipping lines and, as a port operator, we need to have the infrastructure in place for them to carry out their business.”

He said the port would continue to work closely with industry groups, stakeholders and government.

“The NT government has set a very ambitious target of a $40-billion economy by 2030 and the capability of the port will be heavily relied upon if this target is to be met,” Mr Dummett said.

Shane Bartie

Darwin Port is also in the early stages of producing a sustainability report and policy, and a broader reporting regime, which it says will be a key part of that journey.

TRADE PERFORMANCE

Darwin Port recorded exports of 853,748 tonnes and imports of 1.26 million tonnes in 2021-22. This is down on the 1.28 million tonnes of exports and up on the 1.23 million tonnes of imports recorded in 2020-21.

According to Mr Dummett, the primary reason exports were down was the placing of resource projects into care and maintenance.

“Mines are responsible for significant export volumes when producing and obviously that has a large impact when they stop.

“The good news is that the first magnetite export from the Peko Iron project took place at the end of October and Core Lithium are targeting an export of a direct shipping ore by the end of November with

Darwin Port

Following pandemic disruptions and impacts on trade and tourism, Darwin Port is regaining its strength as part of Northern Australia’s core infrastructure. DCN spoke to the port’s new CEO, Peter Dummett

Peter Dummett, CEO, Darwin Port

Sun Cable is developing the world’s largest solar farm and battery storage facility in the Barkly region of the Northern Territory (artist’s impression)

SUN CABLE TO EXPORT SUNSHINE FROM THE NT

Through its flagship project the $30-billion Australia-Asia Power Link (AAPowerLink), multinational company Sun Cable, is developing the world’s largest solar farm and battery storage facility in the Barkly region of the Northern Territory.

Sun Cable will use a high voltage direct current transmission system to send the renewable energy to Darwin through 800 kilometres of overhead transmission lines and then across to Asia via 4200 kilometres of undersea cable.

It will integrate a 17-20 gigawattpeak solar farm as well as a 36-42 gigawatt-hour battery, requiring equipment and cargo to be brought in through Darwin Port.

Earlier this year, the project was deemed investment-ready by Infrastructure Australia, affirming its economic merit.

The AAPowerLink will deliver $8 billion in expected investment into Australia and $2 billion in expected annual export revenues from 2028, roughly the same as the nation’s dairy industry today.

The project will be capable of supplying up to 15% of Singapore’s total electricity needs, a country currently reliant upon gas for around 95% of its electricity generation.

It will also support the economy of the Northern Territory by providing a reliable supply of affordable and large-scale renewable energy.

Sun Cable founder and CEO David Griffin said, “The AAPowerLink will enable a stronger economy for the long term through contracts, wages and economic diversification. It will spur enhanced capacity and skills in the construction and technology sectors as a result of jobs and training over the lifetime of the project and pave the way for new green industries to be established, and to thrive.”

The AAPowerLink could account for around 2.6 million tonnes in carbon emissions abatement.

Construction is planned to commence in 2024 with electricity supplied to Darwin in 2027 and full operations by 2029.

Sun Cable’s AAPowerLink project aims to use a high voltage direct current transmission system to send renewable energy to Darwin through 800 kilometres of overhead transmission lines and then to Asia via 4200 kilometres of undersea cable

Sun Cable; Darwin Port

SINGAPORE

DARWIN

INDONESIA

regular exports for both of those projects expected from early next year,” he said.

In October, Core Lithium officially announced the opening of its Finniss Lithium mine, making it the first mine of its kind in production in the Northern Territory and the only one outside of Western Australia.

The first four years of production from Finniss is already secured, with around 80% sold to offtake partners, including Ganfeng Lithium and Sichuan Yahua. Finniss is on target to export Direct Shipping Ore by the end of this year, following the first sale of Spodumene DSO announced on 3 October.

The Frances Creek iron ore mine is still working towards the recommencement of mining.

“We saw two shipments of iron ore from the Roper Valley mine leave the port in the second half of 2022, however the declining price of this resource has now seen that mine suspend operations,” Mr Dummett said.

Over the past year, the port has seen a slight increase in vehicle imports which is consistent with what has been experienced elsewhere around the country.

“Livestock exports are down and this has been driven by a combination of high domestic demand and the foot and mouth and lumpy skin disease outbreaks in Indonesia, which remains our largest export market,” Mr Dummett said.

“The container trade is steady with the exception of reefers which are well down on the back of a lack of activity in the Territory’s abattoirs.”

He said the port continues to work with hydrogen proponents, oil and gas companies on “the many opportunities that are on the table”.

During 2021-22 there were 1510 vessel calls to Darwin Port, a slight increase on the previous year, mostly barges, rig tenders, LNG and livestock carriers. Container, general cargo and ro-ro vessels were down to 71, the lowest number in the past 10 years, as were dry bulk vessels (24).

CONSTRUCTION PREPARATION UNDERWAY FOR BIG SHIP LIFT

Darwin’s Ship Lift and Marine Industries Facility will be Northern Australia’s largest and will be capable of servicing vessels from industries including offshore petroleum, commercial fishing, pearling, Defence and Border Force.

The common-user facility will include a ship lift 26 metres wide, 103 metres long and six metres deep, capable of lifting 5000 tonnes. It will also include wet berths (wharves) and additional hardstand area for ship repair and maintenance works.

In July, the territory government announced Clough-BMD Joint Venture as the preferred contractor to deliver the design and construction works for the project.

Preparation activity is now underway in the proposed area of the Ship Lift to check for and safely remove any potential objects that may interfere with the build.

In particular, operators are searching for items of heritage significance along with any unexploded ordnance from World War II.

Local business Aurecon is managing these works, with an initial survey identifying potential areas of interest. A magnetometer, side scanner and hand-held metal detectors are also being used to locate potential metallic targets. Divers then further investigate targets with support from maritime archaeologists to ascertain any objects of significance.

Any objects of heritage significance will be catalogued for consideration and appropriate management with the Territory government’s heritage branch.

The Northern Territory government has budgeted $515 million to deliver the project which includes the construction costs as well as other ancillary works being undertaken by the Northern Territory government. A $300-million loan from the Northern Australia Infrastructure Facility has also been secured for the project.

The arrival of Coral Princess on its maiden visit to Darwin on 20 October 2022, being welcomed by music from eMDee

For the most part, a port’s customers are the shipping lines and, as a port operator, we need to have the infrastructure in place for them to carry out their business.

A DIRECT ASIAN CONNECTION

Several shipping lines over recent years have begun, and expanded, regular services between Singapore and the mining regions of Northern Australia.

Swire Shipping is one of the lines offering such with its North West Australia Direct service. It calls Singapore, Darwin and Port Hedland on one loop and Singapore and Dampier on a second loop, both on a 20-day frequency.

A Swire Shipping spokesperson said currently the supply chain into the Pilbara and Karratha region has been largely facilitated by shipping into Fremantle, then trucking the freight north from there.

However, as the big miners in the north west bring in more ambitious carbon-emissions standards, shipping this freight direct from Singapore is becoming more attractive.

According to estimates from Swire Shipping, moving 12,000 containers per year directly to the north west from Singapore – rather than trucking from Fremantle – would reduce carbon emissions by up to 35,000 tonnes, using the United States EPA’s Greenhouse Gas Equivalencies Calculator.

Looking to the future, the spokesperson said Swire Shipping is looking to expand its capacity in the north.

“We’ve had a couple ships up there: the Souni, we’ve now got the Dili Chief. We had the Karratha Bay, so what we’ve established that there is a market there for us,” he said.

“Now we’re running the numbers on increasing our capacity – we’re definitely looking to increase our capacity in 2023.”

ON THE HORIZON

The port maintains there are number of significant opportunities in the resources sector that could buoy activity in coming years, and has developed an additional eight hectares of open air stockpile land to support this growth.

“This sees the port in a very strong position to be able to support a number of resource projects that are in discussions with us and could be in production in the next 12 to 18 months,” Mr Dummett said.

Another project that has the potential to be a game changer for the port and the broader business sector is the Sun Cable Australia-Asia Power Link (AAPowerLink) solar project.

“The volumes of containers and breakbulk that this project has the potential to generate will keep the port, the shipping lines and landside logistics providers, very busy for a number of years,” Mr Dummett said.

Sun Cable is developing the world’s largest solar energy infrastructure network, which it says would be capable of powering whole cities with renewable energy.

Sun Cable’s flagship project is the AAPowerLink, which will harness and store solar energy from the Northern Territory, for 24/7 transmission to Darwin and Singapore via a high voltage direct current transmission system.

PASSAGE TO DARWIN

The port also experienced a strong expedition cruise season in the past year with a number of lines operating between Darwin and Broome. The first visit from an ocean liner, Coral Princess, occurred in October, bringing 2000 passengers to Darwin’s shores.

Prior to the COVID-19 pandemic, cruise ships generated around $60 million of annual expenditure within the Northern Territory.

“Now that Border Force have re-commenced in transit clearances of passengers we are seeing an increase in forward bookings and early indications point to the sector rebounding stronger than prepandemic numbers,” Mr Dummett said.

Darwin Port Tauri Minogue/Darwin Port

The volumes of containers and breakbulk that this project has the potential to generate will keep the port, the shipping lines and landside logistics providers very busy for a number of years.

Containership Dili Chief offloading at East Arm Wharf, Darwin Port, in September 2022

Pond B was reclaimed this year as a new stockpile area at Darwin Port – Core Lithium Mine will initially use the area

FTA’s recommendations to the Productivity Commission

FTA/APSA gave a presentation at the Productivity Commission’s public hearing, which was part of its review of Australia’s maritime logistics system. Paul Zalai summarises FTA/APSA’s main points

OVER THE PAST THREE YEARS,

the container trade market dominated by foreign-owned shipping line alliances has been void of any genuine competitive tension. FTA/APSA supports the commission’s draft recommendation 6.1 to repeal Part X of the Competition and Consumer Act 2010, placing an onus on shipping lines to show that their agreements provide a net public benefit to gain authorisations, whilst facilitating class exemptions allowing businesses to collectively bargain in negotiating terms with shipping lines.

The FTA/APSA position aligns with the views of the Global Shippers Forum and those of multiple international associations advocating to the European Commission not to continue its Consortia Block Exemption Regime beyond the current period (expiration in 2024) believing its benefits have not been fairly shared with users of liner shipping services in the time since it was last renewed in 2020.

TERMINAL ACCESS CHARGES

FTA/APSA are of the opinion that the introduction of a third stevedore operator in Brisbane, Sydney, and Melbourne during the past five years has created a competitive environment resulting in reduced quayside revenue charged to the stevedore commercial client (shipping lines) presumably to retain existing and/ or attract new business. According to ACCC stevedore monitoring reports, this has been offset by commensurate increase in landside charges administered against transport operators.

FTA/APSA firmly agree with the commission’s draft recommendation 6.2 that terminal access charges and other fixed fees for delivering or collecting a container from a terminal should be regulated so that they can only be

charged to shipping lines and not to transport operators.

Furthermore, FTA/APSA recommend that similar regulation be extended to empty container and potentially to LCL depot facilities, which in recent years have mirrored the stevedore model of rapidly increasing vehicle booking system changes administered against transport operators rather their commercial client (shipping lines).

REGULATING DETENTION PRACTICES

FTA/APSA support the intent of the commission’s draft recommendation 6.3 to offer protection for importers and exporters, noting their commentary acknowledging the US Federal Maritime Commission, when faced by a similar predicament, issued a rule that they will consider the reasonableness of the conditions attached to fees in interpreting the relevant law.

of contract, an importer cannot establish that container detention charges are an unenforceable penalty.

Some options to protect importers include: requiring shipping lines to offer to sell the container to the consignee after a set period and that the sale would end the detention period; cap the amount of detention to the lesser of the value of the container or the actual loss suffered by the shipping line; and place a limit on shipping lines being able to charge detention where the delay in returning the container was not something the importer could have prevented.

FTA/APSA remain of the view that the only realistic solution is for regulatory intervention to impose limits on when, or the amount of, container detention that can be charged.

While our expectations are managed, following the line of questions and

With due respect to the commission, FTA/APSA questions its position that detention charges may be an “unenforceable penalty,” as this has held not to be the case in past Australian cases and more recent English cases.

Based on legal advice FTA/APSA has obtained, the fundamental problem is that for an amount to be an unenforceable penalty, the amount must be payable on the occurrence of a breach of contract.

Container detention charges do not require a breach to be payable. Importers are entitled to hold a container for as long as they want, they simply have to pay an amount per day. As payment is not conditional on the occurrence of a breach

responses from participants, we are increasingly confident that we will see the commission retain and potentially strengthen their draft recommendations for incorporation in their final report which is due to provide its final report to the federal government by December 2022.

FTA/APSA questions [the PC’s] position that detention charges may be an “unenforceable penalty”.

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

Shipping Australia responds to the PC

In a speech to the Productivity Commission in early November, Shipping Australia CEO Melwyn Noronha laid out several issues his organisation has with the commission’s draft report on the maritime logistics system, Ian Ackerman writes

SHIPPING AUSTRALIA CEO

Captain Melwyn Noronha, in a speech to the Productivity Commission on its inquiry into Australia’s maritime logistics system, said inefficiency of Australia’s ports is a root cause of its logistics issues.

“Container ports are the central node in the logistics supply chain – if our box ports work well, then it is likely that everything works well; if our ports do not work well, then it is a near-certainty that little will work well,” he said.

INEFFICIENT PORTS MAKE SHIPS LATE

Mr Noronha said box port inefficiency and delays makes ships late; ships don’t worsen the performance of ports.

“Shipping companies that are thrown off time by ports then have to engage in schedule and cost-management tactics such as skipping port calls, blanking sailings (which cuts capacity), issuing surcharges and speeding up ships,” he said.

“Subsequently, after ports have made ships late, a variety of landside problems then manifest. Ship arrivals at port can bunch up … Ship bunching means that a lot of containers need to be handled in a short time.”

And, Mr Noronha said, trucks handle these containers.

“Suddenly there is a local spike in demand for trucking services and trucks can fall into short supply relative to that spike in demand. Higher truck hire fees, cargo-handling delays, wasted costs and shipper/consignee frustration will result,” he said.

TERMINAL ACCESS CHARGES

Mr Noronha told the commission in his speech that Shipping Australia was “very concerned” about the findings and recommendations regarding terminal access charges.

“Recommendation 6.2 in the draft report, which recommends forcing shipping companies to pay terminal access charges, is a terrible recommendation,” he said.

“It amounts to a further subsidy of a sector, namely trucking, that is already extremely subsidised. Some of those trucking industry operators are already generating huge revenues and profits. Meanwhile, about $4 billion a year is directed to the trucking industry, which does not pay its fair share of the costs of road creation and maintenance. Trucking can pay its own way, but it lobbies to make everyone else pay for the trucking industry instead.”

Mr Noronha went on to say trucks are “very dirty” and that they “belch out huge volumes of greenhouse gasses”.

“In Australia, trucks produce more carbon emissions than rail, aviation and shipping combined. Among other things, trucks belch carbon monoxides nitrous oxide, sulphur dioxide and particulate matter. These are damaging to human, plant and animal health. They cause lung cancers, aggravate heart disease and cause a range of illnesses. They can severely damage eco-system health and agricultural productivity through, for example, the formation of acid rain,” he said.

“Trucks can also be hazardous to human health – about seven Australians a fortnight are killed because of heavy truck accidents; just under 10 Australians a week are hospitalised because of heavy trucks.”

Mr Noronha said the recommendation to “force” shipping companies to pay terminal access charges, if carried out, would help grow an industry that “is one of the worst environmental offenders in the transport sector, and which, each year, makes hundreds of Australians sick, grievously injured, or dead”.

“Recommendation 6.2 defies common sense. It is morally wrong. It should be dropped,” Mr Noronha said.

Soeren Kracht; Jim Wilson

Are we a tolerant society?

Industry cannot reap the benefits of diversity without first addressing problems of intolerance, Jillian Carson-Jackson writes

THE AFTERDECK ON THE container vessel lifted gently on the following sea, and the dawn breeze cooled the tears on Kiran’s cheeks. The steel railing was cold to the touch, and the first rays of the rising sun had yet to provide any warmth. Kiran’s eyes were on the horizon, but they registered none of the new day’s beauty there.

Instead, the words of the chief examiner played over and over again in Kiran’s mind. Words of doom. The end of hope. The road to this place had been long and hard. Leaving the village and all family behind. Endless nights trying to learn English, SMCP, and to decipher the complicated information in textbooks begged or borrowed from well-meaning strangers. Scrimping to save enough to pay the fees to get through the certificate exams and required qualifications. And the scorn of those who refused to believe Kiran had any right to try, to rise above the place allotted.

All was confirmed in one horrendous interview, at the very portal of opportunity, when the chief examiner declared in words dripping with venom, that people like Kiran, no matter what their qualifications, had no place in this company beyond the menial position Kiran so needed to rise above.

The final barrier. Insurmountable. The rejection of all that Kiran was by one who represented what Kiran had known all along: that the system has gatekeepers

and those who do not match the essential criteria would never fit in. How was one to fight that entrenched intolerance, the blind assumption that someone was only a caricature of a culture, unworthy of respect? What was the point in even trying? Kiran’s gaze dropped to the dark, turbulent wake below, and grip tightening, raised an unsteady boot to the first railing.

AN UNLIKELY SCENARIO?

This is a fictional scenario, but it would be ingenuous to suggest it is an unlikely one, or that many of us could not think of an instance where something like this might happen in our industry, perhaps even to us.

Too often, people are judged on external factors which are unjustly considered failures or faults. This says more about the ones doing the judging than it does about those being judged.

The story does not mention Kiran’s gender, since it is too easy to make assumptions based on that factor. The story takes place aboard a ship, but it could just as easily happen on shore. Kiran’s ethnic background, wealth, political or religious affiliations are not mentioned, since these are factors commonly used to restrict an individual’s opportunity.

People make unfair assumptions based on very little data. Society is rife with injustices, but that isn’t to say it needs to remain that way. Each of us has a duty to do something positive in this world, and

we must do our best to not allow prejudices and preconceived ideas to harm others.

Intolerance is the enemy of diversity, and we cannot reap the benefits of the latter without first addressing the underlying problems of the former.

COMBATTING INTOLERANCE

In 1996 the United Nations General Assembly invited UN member states to observe the International Day for Tolerance on 16 November. UNESCO views tolerance as respect, acceptance, and appreciation of the rich diversity of our world’s cultures.

Intolerance is just the opposite. Injustice, marginalisation and discrimination are all forms of intolerance. The day of tolerance invites us to reflect on how tolerant we really are and on our own actions and biases.

The world has advanced technologically, with bigger, faster ships and vastly more complicated cargo chains and supply lines. However, they all depend on humans to run them, and those humans interact in much the same ways they always have.

As the world becomes more diverse, it is necessary to combat intolerance wherever we find it. In the words of former UN secretary general Ban Ki-moon: “People are more connected - but this does not mean there is more understanding.” We need societies built on respect for human rights, where fear, distrust and marginalisation are supplanted by pluralism, participation and respect for differences.

Do I hear you muttering that all of this sounds highly theoretical? Indeed, it is; without action it is little more than a pleasant-sounding philosophy. Such things only come to be if individuals act on them. So therein is the challenge to us all. Change is hard, but practice and persistence pay off.

Have a think about how you responded to an instance of intolerance in your life. Should you have acted differently? If something about another person makes you uncomfortable, think about why, and where those feelings come from.

The skills conundrum

Is the Australian maritime industry facing an age-old problem with a new-age solution, Sarah Cerche of MIAL asks

THOSE FAMILIAR WITH THE

Australian maritime industry will be acutely aware of the future challenges it faces. As the world’s largest island nation, an efficient, reliable and sustainable maritime industry is critical to our national security and economic prosperity.

So, what does the optimal Australian industry look like? It is not just about ships. It’s about ports. It’s about pilots. It’s about marine tourism. It’s about towage. It’s about a diverse range of transport options that take extreme weather events and geopolitical uncertainty into account. It’s about securing supply chains into, out of, and around the country.

SKILLED AND COMPETENT WORKERS

Central to ensuring the industry can function at the required level is having enough skilled and competent workers ready to do the jobs that need to be done.

For example, skilled and competent tug crews are critical to avoiding catastrophic incidents around our coast. Seafarers will be needed to make the government’s policy commitment to a strategic fleet become a reality. This will require a concerted training effort by the whole industry.

There is also a steady increase in activity in the offshore oil and gas sector and opportunities to service the emerging energy market.

And that’s only half the battle. Those from seafaring backgrounds are in high demand for critical shore-based roles in ports, as well as those operating import and export terminals in the resources industry.

ALLEVIATING DOMESTIC SHORTAGE

So, what is the answer? More training? How? Training seafarers is a two-step process which combines theoretical and practical elements.

Seafarers need well supervised seatime to become qualified. But even after quality time at sea, seafarers still lack the experience that comes with working for years in the industry across different platforms. Without those platforms,

progressing through the onboard hierarchy and into onshore roles becomes a challenge.

The Albanese government has committed to a strategic fleet, designed to ensure ready access to a modest number of vessels critical to our national interest. To complement this, the industry needs to think strategically about training.

Australian vessel operators are expected to provide training for the vast maritime skills requirement across the country. However, extreme tightening of the labour market and a decline in training numbers has impacted this expectation.

Many seafarers have left the profession as a result of conditions they endured during the pandemic – particularly internationally – meaning the skills

NO EASY FEAT

MIAL is committed to addressing this problem wholistically. With support from Australian Resource and Energy Employers Association, we are working towards identifying what steps are required to make training sustainable for the nation’s immediate and future needs.

Unfortunately, this is no easy feat. We certainly recognise the very firm view of the maritime unions, that a levy on the end users of maritime skills is needed. MIAL doesn’t disagree that a levy is a way of distributing the considerable costs of seafarer training more fairly across those who benefit from skills. However, using a Rubik’s cube as an analogy, one side of the cube does not complete the puzzle.

crunch we face domestically will also be occurring overseas.

This means skilled migration may not be the answer to alleviating domestic shortage.

APPROACHES TO TRAINING

As a nation, it’s critical that we recognise the importance of supporting the development of these skills, and the value these skills have for the national economy.

Over a 50-year seafaring career, only one quarter of that time may be spent at sea. The remainder might be spent serving in ports, working for the regulator or in other roles where experience as a seafarer is, justifiably, considered critical.

For our economy to rely entirely on ship operators to produce for the much larger skilling need is unrealistic. So far, as an industry, we haven’t discovered the silver bullet. Positions such as mandated minimum training numbers have been tried or at the very least canvassed. A solution requires buy-in across the board, as for too long this task has been borne by too few.

The government has a role to play here: to follow through on its commitment to getting the industry settings right, such as taxation settings, a key pillar of which is the seafarer income tax exemption.

The exemption will ensure Australian seafarers can access job opportunities in Australia and abroad on a footing similar to that of their international counterparts. They can then build their skills and knowledge, returning to seagoing or shore-based careers. Drawing again on the Rubik’s cube analogy and the premise of most competitions involving the solving of it, time is of the essence.

Cerche, director workplace relations, governance and policy, MIAL

Central to ensuring the industry can function at the required level is having enough skilled and competent workers ready to do the jobs that need to be done.

Sarah

Where to for Australia on trade single windows?

The European Commission recently passed legislation that will establish a framework for a trade single window, but what is Australia doing? Andrew Hudson asks

IN 2001, AS A NEW PARTNER I managed to convince my (then) legal firm to fund me to speak at an APEC Customs-Business Dialogue in Shanghai. The dialogue addressed issues such as the traditional topics of trade modernisation and trade facilitation.

I was asked to speak on the creation of new electronic means to report the movement of cargo by way of a trade single window (TSW) so exporters, importers and their service providers needed to only deal with one reporting platform for all agencies at the border. They would lodge a report that was, as far as possible, standardised to include the requirements of all those agencies.

THE NEED FOR A TRADE SINGLE WINDOW

The need for a TSW has been recognised in several international agreements such as the WCO SAFE Framework of Standards to Secure and Facilitate Global Trade and the World Trade Organization’s Trade Facilitation Agreement (TFA).

Indeed, the TFA has a specific requirement that contracting parties have a TSW. In Australia’s accession it claimed to have a TSW for customs through the Integrated Cargo System (ICS), although that only applies to reporting to a limited number of agencies, rather than to all

However, some 21 years after my presentation in Shanghai, many countries – including Australia – have yet to create and implement a comprehensive TSW. Some countries (such as Singapore and New Zealand) have developed and implemented various forms of TSW, and the European Commission recently passed legislation that will establish a framework to launch a TSW for the European Union. According to the EU website:

Once fully rolled out, the Single Window will streamline and simplify processes for traders, allowing them to submit customs and regulatory information required for import, transit or export of goods only once through a single point of entry, thus strongly increasing the gains for trade facilitation. Customs and other authorities will then be able to automatically verify that the goods in question comply with EU requirements and that the necessary formalities have been completed. This is an ambitious project that will entail investment at both EU and Member State level, with gradual implementation over the next decade or so.

THE TSW PROCESS

The legislation includes two main pillars: one for government-to-government digital co-operation and the other for businessto-government digital co-operation. The

the development of technology across all countries in the EU, but the passage of the legislation demonstrates a firm commitment to creation of the TSW in the EU and recognition of the benefits to trade. Even though the United Kingdom has left the EU, it is still working on a TSW which includes a significant financial commitment by the UK.

As always, the issue comes back to our Australian experience as we do not have a comprehensive TSW, nor do we have an established framework for its development and implementation. However, we do have funding from the last federal budget for 2022-2023 to support a simplified trade system (STS) to be created by the STS Implementation Taskforce working together with the Australian Border Force and other departments’ agencies.

THE STS TASKFORCE

The STS funding includes financial support to the STS Implementation Taskforce to develop a “second pass” business case for a “tell us once” trade system to simplify trade interactions with government, for importers and exporters and additional funding to the ABF to develop technical foundations for modernising Australia’s core trade systems for the “tell us once” trade system.

border agencies as would ideally be included in any TSW. Further, many forms of Free Trade Agreements include chapters on modernising and facilitating trade, including development of TSWs between the parties.

legislation also provides some detail of the conditions to be included in the TSW process, including technology to be used and a process for passing further regulation.

Clearly, the process will take some time, require further regulation and

The assumption which seems to follow is that the “tell us once” system will be a version of a TSW even though it may not result in a comprehensive TSW. For example, it could entail a new border portal of sorts as the one place through which importers, exporters and their service providers report proposed transactions to government. Proposed transactions would be assessed by technology in that portal and sent for review and processing by the government agencies and their processes behind the border portal.

The STS taskforce, ABF and other agencies have been working industriously

The issue comes back to our Australian experience as we do not have a comprehensive TSW, nor do we have an established framework for its development and implementation.

at their task. By way of example, the STS taskforce has

• Provided advice to government to inform effective investment for crossborder trade reforms, including a maritime single window, a biosecurity self-service portal and modernising agriculture and import systems;

• Identified common business pain points such as the problems in accessing information, duplicative processes, complex regulation, inflexible technology and border delays;

• Calculated that the manual input of trade data adds approximately $450 per sea container and that information duplication costs businesses $431 million annually and $300 million in government charges; and

• Recommended foundational projects such as “cross-border alignment” of information to be provided to government with an initial focus on aligning the 14 “fit and proper person” tests in various regulations of different agencies.

SOME CHALLENGES

Of course, this work is not without its challenges, including the following:

• Current funding is only for a limited period and will be nowhere near enough to develop a TSW or replacement for the ICS soon. It is estimated that replacing the ICS is a seven-to-10-year project.

• The next federal election could be as early as August 2024 which means that all the government parties involved need to complete their work quickly as future funding may not be forthcoming and the STS taskforce may not continue in its current form.

• Government may consider that there are other more pressing needs, especially in our difficult financial circumstances.

• The STS taskforce has plotted the regulation of the import and export pathway carefully and determined that there are 29 agencies with a role at the border, more than 200 pieces of cross-border trade regulations and 145 federal ICT systems supporting cross-border trade. Trying to rationalise and co-ordinate all those agencies and legislating for new reporting processes will be a significant challenge and there may be some agencies which are not convinced of the benefits of the current arrangements and are concerned on the effect of change.

• The changes will no doubt also require significant reform of the agencies at the border and how the public service operates in those agencies. Questions may well arise as to the need for so many agencies at the border and whether one multi-jurisdictional border agency with officers trained in more than one discipline could be a desirable outcome.

• Government has resisted many requests for legislation change including developing a new Customs Act – how would it respond to recommendations for much wider review of border legislation, regulation and processes?

The private sector remains committed to support this work by responding to requests for assistance and by initiating its own recommendations. After some time, the National Committee for Trade Facilitation and its advisory groups have reconvened. The committee will facilitate oversight on the work being conducted in many different places and ensure better transparency in the process, which is vital to providing ongoing support.

Those of us involved from the private sector look forward to continuing our work in conjunction with government and its agencies. I think government, its agencies and the private sector are all eager for substantive and valuable reform. Plus, 21 years after my Shanghai presentation, I would like to see the process through!

Andrew Hudson, partner, Rigby Cooke Lawyers

US prohibition causes problems for its merchant fleet

The 1920 prohibition of making and selling alcoholic drinks caused problems for the US-flagged passenger fleet operating abroad

IN 1920 THE US ENACTED A national ban on making and selling alcoholic drinks, and the law had farreaching affects within the country and abroad, including on US-flagged ships operating overseas.

The Daily Commercial News in November 1922 wrote that these laws could make US passenger vessels operating overseas commercially unviable. According to the prohibition law, these ships had to be dry and passengers would not be allowed to buy or bring aboard any alcoholic drinks.

In an article from 28 December 1922, entitled “Prohibition at Sea: Disadvantages Pointed Out”, the DCN related the story of the United States Line steamship President Adams running into trouble with the US law.

“In the cabin of the ship, securely locked, with the key in possession of Captain Jonas Pendlebury, was a fivegallon demijohn filled with choice brandy,” the newspaper wrote.

“The possession of this container and its contents was requisite to the ship obtaining necessary clearance papers to enable her to leave London.

“Under cabled orders from the United States Line, the ship had been made dry as the proverbial bone, but when it came to clear, the captain was informed that the British laws required that for each 100 third-class passengers aboard there must be one gallon of liquor for medical purposes.”

According to the newspaper, the ship had more than 200 passengers onboard and the captain, “to be on the safe side

Anti-prohibition p rotesters in New York citing issues stemming from the law on US passenger ships operating overseas

of British law,” took aboard five gallons, “depending on the official status of the matter to save him from trouble with American laws when he reached his home port”.

“There again, we have another good illustration of the bad working of ‘Prohibition at Sea.’ Many statements have been made condemning the action of Congress in the matter,” DCN wrote.

The newspaper said it had been writing for some time about how the new American prohibition law, as it comes within the scope of American ships at sea and within foreign ports, would have a deterrent effect on the passenger trade negotiated by American companies.

DCN quoted American Steamship Owners Association president H. H. Raymond: “This decision of the Attorney General, even with its inclusion of foreign ships entering our waters, adds a further serious handicap to American passenger steamers in the foreign trade.

“American steamers operating to South America to the Orient and elsewhere, carry passengers between foreign ports, but they will be unable to serve liquors while foreign vessels will be free to do as they please,” Mr Raymond said.

“As a result, the merchants of foreign countries, with whom we wish to build up our foreign trade, if we are to have any, will travel on ships of our competitors to our growing disadvantage.

Mr Raymond continued: “To many of these people, light wines are as a food, and as they will not be able to obtain light wines aboard American ships, or to bring their wines with them, it is inevitable that they will forego patronising American ships while foreign ships are available.”

“But the hard fact must be faced, that it imposes another grave disadvantage on American ships, particularly on the largest and swiftest steamers, the most valuable element in our merchant shipping and our national naval reserve,” he said.

“The action of the Attorney General makes it all the more imperative that Congress should lose no time in the enactment of vigorous national aid, or the greatest of our American steamship lines will most certainly disappear from the ocean,” Mr Raymond said.

What does your work as a project engineer involve?

I deliver projects. I’m in what’s called the Asset Services team, and within the Asset Services team we have a team called Sustaining Capital, which essentially means we do what’s necessary to sustain the port and keep it going. I help look after everything you can physically see at the port. That includes roads, bridges, wharves, utilities and things like that. It’s quite a diverse and expansive area, and I’m in the team that tries to hold it all together and keep it running.

Tell me about what you studied at university.

When I graduated high school, I started a law degree. Two years in, I realised it wasn’t for me. Engineering stuck out to me after that because I have a lot of engineers in my family. It’s who we are and what we enjoy. I guess I tried to swim upstream and failed. In high school I wanted to be an architect, so structural engineering seemed as close to architecture as I could get without actually being an architect. I had a very inflated sense of what engineering was. I thought I was going to go build the Burj Khalifa.

How did you end up working at the Port of Brisbane?

You need some sort of practical experience before you graduate from an engineering degree. I was looking for work experience opportunities and I came across an ad for an internship at Port of Brisbane. I honestly had no idea where the port was, or what Port of Brisbane was at all. I didn’t know until the day of my interview, and I’m very glad I found out.

The grill

DCN caught up with Port of Brisbane project engineer Diana Geaboc to talk internships, sewing and dreams of building skyscrapers

What was it like transitioning into this new environment?

What I love about working at the port is the varied range of engineering disciplines out here. There are no skyscrapers at the port, but we’ve got roads, utilities, technical aspects and land development. At the beginning, I spent a lot of time shadowing people on my team and learning the ropes from senior project managers. My very first project was to repaint the driveway in front of our office building. I just worked my way up from there. The projects got bigger and bigger, and I naturally progressed to where I am now. I’ve also been supported by a lot of good mentors.

Were there projects you worked on at the port that were particularly memorable?

I replaced a couple of pontoons at our tug base here. It was an extensive project – it went all the way from managing the design to managing the installation. It was a real juggling act with operational needs and deadlines, and it was the probably the first time I truly had to experience all the moving parts at once. There were times I honestly didn’t think I was going to get it done by my deadline. Everything was okay in the end, but I think I got a few grey hairs in the process. That project changed me as an engineer. I approach projects differently now.

What’s the most important lesson you’ve learned from a mentor? It’s a combination of learning how to think on your feet, but also having the confidence to be able to make a call without needing someone to okay it first.

There are times where it’s better to ask for advice, but you have to trust you also know what you’re doing and you’re there for a reason. You’re qualified to make decisions within reasonable limits. It took me a while to learn that, but I think I’m getting there.

What passions do you have outside of engineering?

I really enjoy gardening and sewing. I have five or six plants on my desk at work that I like to tend to, and I have heaps at home. I picked up sewing more recently. I’ve been to a lot of weddings recently – I’m at that time of my life where a lot of my friends are getting married and there’s a wedding every second month – and I’ve just started making my own dresses for those occasions. I could never find something I liked or that fit what I wanted, so I thought, “I’m going to make it myself”. I guess, in essence, that is engineering.

Tell us about your dream holiday. I would go to Japan. I’ve already been there, so it’s kind of cheating, but I loved it so much I’ve been twice.

There is so much to see and do in the country. You fly into Tokyo, experience the city, then after a while you head to Osaka, which isn’t as metropolitan. It’s such an impressive country; the vibe, the culture and the people are just fantastic. Then there’s the shopping and food … there’s no downside.

Do you have travel advice for anyone you’ve just inspired?

Definitely buy a rail pass for the bullet train, then put your finger on a map and go. The rail pass is golden.

www.portbris.com.au

Every year, approximately $55 billion in international trade flows through the Port of Brisbane, connecting Queensland with the world. As the Port grows, we are working with customers and stakeholders to facilitate trade and unlock supply chain to support more jobs and boost the Queensland economy.