IN THIS ISSUE
• Minister Outlines Shipping Reforms
• ICHCA International Directors Inspect Best on Offer in Japan
• A Fresh Approach to Sustainable and Cost Effective Freight –
The UK Experience
• Port of Brisbane Sale Finalised
• Australia Appoints First Permanent Representative to IMO
• ICHCA International Members Newsletter Available Online
• ICHCA Information Paper No.51
• OECD Forecasts Australia’s GDP to Grow by 4% in 2012
• Registration Open for ALC Annual Forum 2012
• European Freight Service Expands in Australia
• Townsville’s Record Trade Run Continues
• Conferences and Events Minister Outlines Shipping Reforms
I have released a discussion paper outlining the reforms being proposed by the Gillard Labor Government to restore the viability and reverse the decline of the Australia’s domestic shipping industry. As a large, relatively remote island continent, Australia is particularly reliant on shipping for its ongoing economic development. Indeed almost all our imports and exports are carried by ship and our busy ports manage some 10% of the global sea trade.
Yet at present Australia has just 30 registered major trading ships carrying less than half of one percent of our huge export trade – down almost 50% in little over a decade due to the policy neglect of the former government.
Without significant economic and regulatory reforms our entire merchant fleet as well as the skilled workforce it trains and supports could be gone within a decade.
That’s why over the course of the next three years the Gillard Labor Government will:
• Introduce new tax arrangements to attract greater investment into the industry.
• Overhaul seafarer training and provide a better deal for Australian seafarers.
• Modernise domestic maritime laws and make the Australian Maritime Safety Authority the regulator of all commercial vessels operating in Australian waters.
Our ambition is simple: a viable domestic shipping industry within a competitive national transport sector – an outcome which would help secure Australia’s long term economic prosperity and national security objectives.
It’s time for Australia to again be an active player in the global shipping industry.
Put simply, Labor’s ‘nation-building’ agenda of greater investment and long term reform extends to the transport industry our farmers, miners and manufacturers rely upon to get their products to their international customers.
What’s more, a greater use of shipping – an efficient mode of transport – to move cargo from one part of the country to another could also play a major role in reducing Australia’s carbon footprint.
The measures being proposed by the Government are based on the recommendations from the bipartisan parliamentary inquiry we commissioned shortly after coming to office as well as the subsequent work of an advisory group consisting of industry representatives.
A full copy of the discussion paper can be downloaded at: www.infrastructure.gov.au.
ICHCA International Directors Inspect Best on Offer in Japan
The ICHCA International Board of Directors met in Japan in October and as part of the activities inspected the revolutionary new container hanger at JFE Engineering's site of the Ooi project.
The structure is 150 metres long, 31 metres high and 56 metres wide. The container stacking hanger is fully automated and has a capacity of 840TEU and all can be reefers. The maximum performance is 48 containers and hour.
Following is the description of the revolutionary Container hanger which has been built at Tokyo Port Terminal. It is currently completing final testing and will be operational next year.
ICHA Directors are pictured below in front of the massive structure with their Japanese hosts, including representatives from ICHCA in Japan.
Souvenir of Site Visit of Container Solid Hangar - 20th October 2010 JFE Engineering Corp.
A Fresh Approach to Sustainable and Cost Effective Freight –
The UK Experience
By Ian Lovell
The recent ICHCA South Australia luncheon was addressed by Jonathan James, Director, AECOM in UK and Paul Davies, Manager Environment Policy, Department for Transport Energy and Infrastructure South Australia.
Setting the scene, Paul Davies outlined key pilot programs that are part of Australia’s national strategy on energy efficiency. These include:
§ Improving performance of heavy vehicle fleets being developed by the NSW and Victorian Governments
§ The Queensland Government looking at a smart freight program
§ An Australian eco-driving program being developed by the South Australian and Victorian Governments.
Jonathan James then delivered a comprehensive presentation on a range of exciting initiatives he and the AECOM team have been working on in London and the UK.
He describes freight management objectives for sustainable freight as:
§ Protecting and enhancing economic activity.
§ Reducing CO2 and other pollutant emissions.
§ Reducing infrastructure damage.
§ Improving road safety.
§ Reducing congestion.
§ Reducing noise and disturbance.
These objectives have to be delivered in urban areas in cities and towns, on the inter-urban road network and for through traffic on rural settlements.
Arguing for a fresh approach, he acknowledges that we have tried all traditional approaches but that as regulation tends to impose cost which tempts operators into non-compliance to remain competitive, then maybe it is time for an alternative approach.
Part of the fresh approach is to use a range of tools including freight efficiency campaigns and membership schemes such as FORS (Freight Operator Recognition Scheme). This particular scheme offers accredited membership in return for demonstration of high standards of efficiency and safety, all this being measured through freight performance benchmarking.
In essence for FORS members, they are incurring less parking fines (PCNs), having less accidents and reducing their fuel consumption.
Helping the freight Industry to help itself through the freight best practice program is also yielding tangible results. This national program of the Department for Transport in the UK involves researching efficiency and then marketing to the industry and measuring performance online to reinforce sustainable behaviour by showing how you can do more with less. Straightforward initiatives such as information on different truck efficiency performance can be very effective. 
Across a fleet such as that shown above a specific benchmarking study shows a 78% difference between the lowest and highest performers in terms of energy used per pallet delivered.
Freight Best Practice has a range of ‘products’ available including best practice guides, case studies, pocket guides, DVDs/CD’s and interactive tools.
In 2007 an independent assessment conducted showed that:
§ Fleets which utilise the freight best practice programme save on average £20,500 per year*
§ Industry savings directly attributable to the use of freight best practice programme material total £83 million over the last two years*
§ A reduction in CO2 emissions of more than 240,000 tonnes over the last two years*
*2007
Jonathan James also detailed the Tyne and Wear Freight Partnership and the benefits flowing from it by getting stakeholders to work collaboratively together. One focus of this partnership is delivering better freight routing through the provision of paper and electronic freight maps showing the local authority preferred routes.
Delivery and servicing plans and construction logistics plans are currently being trialled by Transport for London. They show businesses that receive goods how to plan to manage deliveries in a more proactive way. Pilot scheme results have shown:
• Deliveries reduced, rescheduled or consolidated.
• Minimising transport costs.
• Cutting congestion / reducing environmental impact.
• Identifying legal loading / unloading plans.
• Encouraging ‘green’ procurement.
• Promoting load consolidation.
• Influencing building design to minimise construction related trips.
• Improving compliance with safety policies.
We also learned a lot more from this excellent address but time and space do not permit me to share it with you. I hope this reinforces the importance of attending our ICHCA events.
Clearly much of what has been achieved by AECOM on these and other sustainable freight efficiency projects are readily adaptable/transferable to our circumstances in Australia and we need to take advantage of that.
In closing, I’ll leave you with a picture from the presentation – it brings the public, cyclists and freight industry together on sharing the road.
It provides a positive message to all. Have a great Christmas and New Year.
Port of Brisbane Sale Finalised
The Queensland Government has announced the 99 year lease of the Port of Brisbane to the Q Port Holdings Consortium. The consortium includes major stakeholders Global Infrastructure Partners (GIP), Industry Funds Management (IFM) and funds managed by QIC Limited (QIC) and a minority stake held by Tawreed Investments Ltd., a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA).
The sale delivers $2.1 billion to the State Government as well as the new owner agreeing to fund the future upgrade of section three of the Port of Brisbane Motorway, at an estimated cost of $200 million.
Queensland Treasurer, Andrew Fraser, said the deal involved a quality group of investors with the skill and balance sheet to ensure the future development of the port. It includes leading players in port and airport operations and two of Australia's largest superannuation fund managers.
"GIP, IFM and QIC each hold equal stakes of about 27%, with the remaining minority stake held by ADIA. Collectively the consortium has interests in port terminals across eight countries and it has the right credentials for owning and operating the port into the future.
"Two of the four members, IFM and QIC, are also shareholders in the Brisbane Airport - demonstrating their faith in the economic development of the Australia Trade Coast precinct of which the Port of Brisbane is a key component.”
Brisbane Airport has grown from 5,000 employees in 1996 to 17,000 today with $1.2 billion in investment since it was privatised.
The State Government will retain the role of Harbour Master through Maritime Safety Queensland and continue its responsibilities in relation to safety, security and the movement of ships within the Moreton Bay shipping channel and Brisbane River.
Australia Appoints First Permanent Representative to IMO
Australia has appointed its first permanent representative to the International Maritime Organization (IMO) demonstrating its commitment to the IMO and its important work in international maritime safety, security and pollution prevention.
John Dauth will also spearhead Australia's re-election campaign to the IMO's 40-member governing council.
Australia is a founding member of the IMO and has served on its governing council for most of its 60 years having a significant role on the council, representing the fourth largest shipping task in the world, with most of these vessels transiting close to significant natural marine and coastal habitats.
The permanent representative has been warmly welcomed by the IMO Secretary-General as well as other permanent representatives to the IMO.
Mr Dauth will build on current strategic relationships with other member states in relation to important maritime issues, participate in negotiations on matters before the IMO, such as developing the regulatory regime for greenhouse gas emissions from shipping and provide a full-time presence in London. Around 80 other IMO member states maintain a permanent representative to the IMO.
The Australian Government will also appoint an alternate representative based at the High Commission in London who will further enhance interaction with the IMO and will carry out the day-to-day work at the IMO. The IMO is a specialised agency of the United Nations with responsibility for the safety and security of shipping and the prevention of marine pollution by ships. For more information visit: www.imo.org.
John Dauth is a career diplomat and has been the Australian High Commissioner to the United Kingdom since 2008.
ICHCA International Members Newsletter Available Online
The October Issue of ICHCA International’s Members newsletter can be found at http://www.ichcainternational.co.uk/membership/members_only/membersonly.htm
The username and password will be required. ICHCA INFORMATION PAPER No. 51
Amendment 35 of the IMDG Code
Amendment 35 of the IMDG Code, having been approved by IMO’s Maritime Safety Committee last May, is soon to become available in hard copy and electronic format. Its transitional year will be 2011 and it will come into mandatory force on 1 January 2012.
The following is a summary of technical changes that will be made by the amendment and which relate specifically to or will be of relevance to those in the transport chain. The summary does not cover all of the changes and those who are involved with the movement of packaged dangerous goods should ensure that they obtain at least one copy of the new edition of the code as its provisions could start to be used from January onwards.
The new volumes 1 and 2 cost £110 from the IMO direct, but ICHCA members will get a 15% discount if ordered through the Secretariat. IMO is also re-publishing the supplement as elements in it have changed and that is available at £50 direct from the IMO – discount also available as above.
Notable changes include further emphasis on shore-side training including records to be kept, new special provisions relating to vehicles and engines, references to the provision of information in electronic format, a new limited quantity label/placard, an amended excepted quantity label for packages, an amended marine pollutant mark, some tightening up on the movement of fumigated units and the introduction of three new UN numbers for calcium hypochlorite.
It is recommended that the summary be passed on to those specialists who will be able to advise members accordingly on the provisions.
Any questions on the summary or application of the new code can be addressed to mike.compton@ichca.com.
OECD Forecasts Australia’s GDP to Grow by 4% in 2012
In the Economic Outlook (No 88), the Organisation for Economic Co-operation and Development (OECD), has forecast that Australia’s GDP will grow by 4% in 2012. Growth of 3.3% is forecast for 2010 and 3.6% in 2011.
Deputy Prime Minister, Wayne Swan, said that the OECD Economic Outlook, “confirms Australia's economy continues to be one of the best performing in the developed world with enviable growth and unemployment forecasts.”
Mr Swan said that the growth outlook for Australia was one of the report’s strongest.
“Australia’s GDP growth is forecast to outstrip the OECD total and grow more than twice as fast as the Euro zone and Japan in both 2011 and 2012,” said Dr Matthew Durban, the Australian Trade Commission’s Senior Trade and Investment Analyst.
“Australia’s growth is therefore going against the trend in the OECD for developed nation growth to deteriorate next year,” he said.
“The need to strengthen supply capacities and infrastructure, driven in part by the mining boom, should attract significant foreign and domestic investment in Australia over the period.”
See the latest data and charts on Australia's competitive advantages.
Registrations Open for ALC Annual Forum 2011
The Australia Logistics Council (ALC) will be hosting its Annual Forum at the Melbourne Convention and Exhibition Centre on 21-22 February, which will focus on Freight Networks for the Future.
Over 250 delegates are anticipated to attend the forum which is expected to attract many senior leaders in the T&L industry in Australia. A feature of the 2011 ALC Forum will be the CEO’s plenary session on Freight Networks for the Future on Monday 21 February.
The 2011 ALC Annual Forum registration and information brochure is available online. Please click here to download or contact Natasha Diduk, Office and Events Manager at natasha.diduk@austlogistics.com.au.
European Freight Service Expands in Australia
The Luxembourg-headquartered air and ocean freight service has expanded in Australia with a new office in Western Australia. Located close to the Perth International Airport, Logwin’s new facility augments the company’s existing Australian offices in Brisbane, Sydney and Melbourne.
The new office will also provide support and services to Logwin’s regional network in Asian markets such as Singapore, Hong Kong and Shanghai, which are in the same time zone as Perth.
Founded in Aschaffenburg, Germany in the 1870s, Logwin AG now provides air freight, ocean freight, ship parts logistics, sea-air logistics and project logistics internationally. The company has 250 locations in 40 countries and over 1,000,000 square metres of warehousing storage space available worldwide.
In 2009, the Logwin Group generated sales of €1.1 billion.
Townsville’s Record Trade Run Continues
Trade through the Port of Townsville has surpassed 1 million tonnes for the fourth consecutive month with more than 1.01 million tonnes of trade in October, bringing total current financial year trade to 4.47 million tonnes.
The figure is the highest four-month volume ever traded through Townsville in its 114-year history. Mineral concentrates and sugar remained the port's two highest export commodities, accounting for a combined 238,690 tonnes.
The third trial shipment of magnetite from Mount Moss Mine contributed 45,733 tonnes, while molasses and fertiliser at 31,506 and 27,500 tonnes rounded out the top five October export goods.
Nickel ore imports at 461,621 tonnes underpinned the overall trade result and were supported by strong performance in petroleum products, cement and general cargo trade.
Meanwhile, Port of Townsville Business Development Officer, Tracey Lines, has snared a senior trade export award. She recently won the Premier’s Special Award for a Townsville Export Champion at the 2010 Townsville Regional Export Awards.
She received the accolade, presented by the Queensland Premier, Anna Bligh, for her outstanding working in export infrastructure and trade development. Ms Lines has been instrumental in developing a number of economic impact studies in support of local export infrastructure and trade development projects. 
The Australasian Ports and Harbours Congress 2011 –
The Premier Asia Pacific Ports Event
Exclusive offer for ICHCA members.
ICHCA Australia has negotiated a special offer for members for the Australasian Ports and Harbours Congress 2011. It will be held at the Stanford Plaza, Brisbane on 21-23 February, 2011.
Ports are Australasia’s economic gateway to the world. But increased vessel sizes, transport bottlenecks and growing exports are pushing ports to their limit. Are our ports at breaking point or poised to become world class trade hubs?
The next 18 months will see continued demand from emerging economies driving growth in exports. Exports are expected to grow from 685 million tonnes to 1.35 billion tones by 2030. Ports are expanding existing facilities and looking to raise capital for new projects in a bid to meet projected demand and develop at the same pace as industry.
The Australasian Ports and Harbours Congress is the only conference to look through the eyes of port users. It will discuss the future demands of resource companies, shipping lines and the cruise industry. To ensure port operators remain competitive and attractive. Are ports capitalising on the resources boom? Hear what port users think, see page 7.
The Australasian Ports and Harbours Congress will feature CEO presentations from Australia, New Zealand, Papua New Guinea, Indonesia, USA and Europe to discuss how to:
• implement an organisational approach to future growth
• prepare and package your port expansion project for financing
• remain relevant and attractive in an increasingly competitive environment
• improve port productivity by evaluating logistics and supply chain processes
• identify future growth opportunities
• plan and design projects in a cost effective way
• attract infrastructure investment
• collaborate with cruise companies and tourism associations to capitalise on the growing cruise industry.
No other event allows you to hear from and network with the region’s port industry leaders and your international peers.
View the conference program: http://www.terrapinn.com/2011/Ports/programme.stm
If you are a member of ICHCA you are eligible to obtain a 15% discount for the conference. You can register online now or call +61 2 9021 8808 email to cs.au@terrapinn.com and quote voucher code VIPICHCA for your 15% discount offer.
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