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IN THIS ISSUE
- ICHCA International Conference Rated Major Success
- John Strang Stands Down as ICHCA International Chairman
- ICHCA Conference Papers on the Web
- ICHCA Conference Paper Summaries:
- Global Development in Shipping from an Australian Perspective
- Integrated Bulk Grain Supply Chains
- Adani Group in Australia
- East Japan Great Earthquake and Impacts on Logistics
- Transhipper Concept Provides Unique Transport Solutions
- Airport Curfews, Slot Allocation and Scheduling
- Navigating the Future - Airports Towards 2020
- Moving the Victorian Grain Task
- New Directions in Global and National Biosecurity Partnerships
- Watco Companies - Australia
- New Online Resource for Investors in Australian Infrastructure
- National Transport Regulator Reforms
ICHCA International Conference
Rated Major Success
Delegates from the UK/Europe, West Africa and Asia including Japan, India, Singapore and Malaysia joined a large and influential Australian attendance at the 2012 ICHCA International Conference
in Melbourne from 8-11 May. The Langham Hotel was the venue for the conference at which ICHCA reinforced its reputation as one of most influential cargo handling/transport industry organisations in the world.
Conference organiser, Ian Lovell, who is also ICHCA Australia's Company Secretary, said the feedback from conference participants was very positive, both in terms of the quality of conference speakers and presentations and also in relation to the excellent
networking opportunities which it provided on an international level.
In all there were 30 speakers over the two days of the conference proper with two additional speakers at the ICHCA Expert Panel Day and in total 185 people attended the conference and there were 150 at the conference dinner.
On the final day delegates had an opportunity to tour the Port of Melbourne, the Patrick Intermodal facilities and Melbourne Airport.
In delivering the keynote address the Victorian Minister for Ports, Dr Denis Napthine, provided an insight into the port system in the state, which will likely see container throughput at the Port of Melbourne exceed four million TEUs by around 2020. He pointed
to the population growth in the State as the key driver.
He also provided detail on the Webb Dock container terminal and the future plans for a container port at Hastings. The government has a two-pronged strategy to expand container capacity:
- Increase capacity at Swanson Dock to about four million TEU
- Develop a new container terminal at Webb Dock to handle at least one million TEU.
Dr Napthine announced that Victoria's automotive trade will be consolidated at Melbourne's Webb Dock. This decision comes following completion of an extensive feasibility study undertaken by the Department of Transport.
Port of Melbourne Corporation has been asked to develop a new automotive terminal at Webb Dock West which will include dedicated Pre-Delivery Inspection (PDI) facilities. These works will be delivered as part of the Port Capacity Project.
John Strang Retires as
ICHCA International Chairman
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Long standing ICHCA International Chairman, John Strang, has retired from the position
after being in the role for 4 years.
Mr Strang, who has been tireless in the role and advocated all over the world for the organisation and the issues it has been pursuing, announced the decision at the ICHCA International's AGM on day two of the conference. Mr Strang's experience and commitment
to ICHCA will not be lost totally to the organisation as he will continue to be involved as a Board Director of ICHCA Australia Limited, which has been welcomed by the Australian Board and members. |
Mr Strang, whose family has a long history with the ICHCA organisation, was praised by conference delegates for his efforts and the many years of
leadership he has contributed to the organisation.
ICHCA members were also sorry to learn that Bala Subramaniam was also retiring from the Board and the international perspective and commitment which he brought will be missed.
While ICHCA regrets John and Bala's decision to retire from ICHCA International, we are delighted that Dave Wilson from HPH UK has agreed to become a Director of ICHCA International.
ICHCA Conference Papers on the Web
The ICHCA International Conference is over, but if you did not manage to attend, you missed out on hearing from 30 expert speakers and networking with the national and international speakers,
sponsors delegates and guests.
However, we are pleased to advise that virtually all of the presentations are now on the web. Go to
www.ichca-australia.com to access them.
Also, if you are not yet a member of ICHCA please consider becoming one - yes, membership information is also available on the same website.
Registrations of interest are now open for the ICHCA Australia Conference in 2013 - please send your registrations of interest re location, theme, sponsorship and attendance to me by the end of July 2012.
Thank you to all that were involved in the Conference.
Ian Lovell
Company Secretary and Conference Coordinator
ICHCA Australia Limited
Mobile: 0400 708 182
E-Mail: ian.lovell@bigpond.com
ICHCA Conference delegates heard that cargo handling solutions comes in many forms.
Conference Photo Gallery
Award Presentation
John Strang, Chairman ICHCA International Ltd. With Recipient
Tatsuya Yamaoka, General Manager Engineering Division, Tokyo Port Terminal Co. Ltd.
Session 1
Central Photo:
David Bayne - Associate Drewry Consulting UK, Llew Russell - CEO, Shipping Australia Ltd. , John Strang - Chairman, ICHCA International Ltd.;
Bottom Right: Guy Reynolds - Principal Consultant, Shipping and Maritime, GHD
Session 2
Top Left: Laurence Jones, Director, ICHCA International
(2nd from right) chairs Session 2
Top Right: Tetsuya Shiraishi, Deputy Director General, Shikoku Regional Development Bureau, Ministry of Land, Infrastructure, Transport and Tourism (MLIT), Government of Japan
Bottom: Jonathan Benyei, Assistant Secretary Cargo & Shipping, Department of Agriculture, Fisheries & Forestry (Biosecurity);
Yogendra Sharma, Director of Rail, Adani Mining; John Warda, Group General Manager Operations and Supply Chain, Emerald Group
Session 3
Top Right: Ernst Krolke, CEO, Airport Co-ordination
Australia
Bottom: Linc Horton, General Manager Property, Melbourne Airport;
John McArdle, Aviation Industry Representative and Chairman, South Australian Freight Council;
David Williams OAM, Chairman, Wexco Pty Ltd
Session 4
Top Right: Grant Gilfillan, CEO, Sydney Ports
Corporation;
Bottom: Stephanie Bolt, Environment Manager, Adelaide Airport Limited;
David McInnes, Group Manager Sustainability, Linfox Logistics; Paul Green, Vice President Business Development, Marketing and Government Relations, Watco Companies (Australia)
Session 5
Top: The Hon Dr Denis Napthine MP, Minister
for Ports, Regional Cities, Major Projects and Racing, State Government Victoria;
Terry Garwood, Executive Director, Freight Logistics and Marine, Department of Transport Victoria;
Bottom: Stephen Bradford, Chief Executive Officer, Port of Melbourne;
Michael Deegan, National Infrastructure Coordinator, Infrastructure Australia
Session 6
Top: Paul Asare Ansah, Marketing And Customer
Services Manager, Ghana Ports And Harbours Authority; Matthew Michalewicz, Managing Director, SolveIT Software;
Bottom: Brad Fish, CEO, North Queensland Bulk Ports;
Gary Webb, CEO, Newcastle Port Corporation;
Dom Figliomeni, CEO, Port Kembla Port Corporation
Session 7
Top: Miles Dacre, Technical Director and Sector
Leader, Asset Management and Advanced Materials - Australia and New Zealand, AECOM;
Tatsuya Yamaoka, General Manager Engineering Division, Tokyo Port Terminal Corporation, Japan;
Bottom: Peter van Duyn, Commercial Research, Institute for Supply Chain and Logistics;
Ross Ballantyne, Naval Architect, Sea Transport Corporation; Beat Zwygart, Managing Director, Lasstec SARL (France)
During Recession
Delegates and Speakers
Dinner
Top: Chris Tatum, Managing Director Transportation
Australia –New Zealand, AECOM;
Bottom: Matthew Michalewicz, Managing Director, SolveIT Software
Global Development in Shipping from
an Australian Perspective
Llew Russell, CEO, Shipping Australia Ltd
The CEO of Shipping Australia, Llew Russell, says environmental issues are providing major challenges for the industry, as it comes to terms with the ever increasing environmental compliance.
He said that last year 150 nations at IMO concluded a ground-breaking agreement to reduce the industry's carbon emissions. New ships will be built with an Energy Efficiency Design Index (EEDI) and from next year, all ships will have to utilise the Ship Energy
Efficiency Management Plan (SEEMP) to improve fuel consumption and reduce emissions.
Mr Russell said that combined with an agreement on lower nitrogen oxides and sulphate oxide emissions via low sulphur fuels, which it is estimated will increase bunker costs by 50%, the industry is confident that globally it can achieve a 20% reduction in emissions
by 2020.
He said it was necessary to put the emissions impacts into perspective, with shipping providing half the emissions of rail, on fifth of road transport and 500 times less than air freight.
"A recent IMO study estimates that shipping accounts for about 2.7% of the world's carbon emissions, while the World Bank has suggested shipping should contribute $US25 billion to the proposed $US100 billion a year by 2020 to the Green Climate Fund. “The UN
Framework Convention on Climate Change members will have to determine how this money is going to be raised before the next UN Climate Conference in Qatar in December 2012."
Mr Russell said the current outlook for shipping services was cloudy. There is a great deal of uncertainty in world economies and in Australia the mineral boom remains dependant on the economic health of China and Japan particularly. "Both dry and wet bulk
sectors are going through very difficult times as is the world container trade."
He provided an oversight of the security and piracy issues as they relate to shipping. Among the points which he made:
• the majority of attacks are outside the Gulf of Eden and now closer to India
• a key questions remains whether to carry armed guards
• a best practice policy is to undertake exercises prior to entering danger zones
• piracy costs $US7 billion a year
• there are increasing attacks in the South China Sea (from 8% in 2009 to 20% now).
Mr Russell said Australia had the fourth largest freight task in the world, was the second largest exporter of coal, the second largest exporter of iron ore but had under 4% of the global container trade.
"Efficient use of infrastructure remains a key challenge in Australia as does building new infrastructure and questions remain on how to increase the carriage of freight on rail."
Integrated Bulk Grain Supply Chains
John Warda, Group GM Operations and Supply Chain, Emerald
Integration and amalgamations are likely to continue to occur in the Australian grain handling and marketing sector according to John Warda. He said the sector trend in recent times had been towards integration and amalgamation. "We are seeing a change from
a series of organisations controlling distinct components of the supply chain into fully integrated, multi commodity businesses with heavy investment in storage and logistical capacity."
Mr Warda provided a comprehensive overview of the Australian operations of the Emerald Group. Emerald established in 2004 and in the first year received a modest 25,000 tonnes of grain. However, there has been significant growth since to the stage where Emerald
is now Australia’s fifth largest grain trading business with four million tonnes of grain acquired in 2011/12. It now has 11% of the national market with as high as 25% in some regions. It trades in wheat, barley, canola, sorghum and pulses and is the biggest
exporter of wheat into Japan and the second biggest into Indonesia.
It has a national footprint built of local partnerships with:
- three joint ventures with grower co-operatives in NSW, Victoria and SA
- two grower alliances in WA
- two subsidiaries in SA and Queensland
- a multi-brand strategy.
Sumitomo Corporation became a 50% shareholder in 2010 and it has a presence in 65 countries, $85 billion net assets and provides access to critical Asian export markets. Emerald acquired Australian Bulk Alliance storage and handling network in 2011.
Mr Warda said the company's future was being driven by Asia. The world population is growing with 6.8 billion now, 8.2 billion in 2030 and 9.5 billion in 2050. Asia is the fastest growing region, increasing by 65 million people annually. China is now the second
largest world economy and will overtake the USA by 2017. In China's situation, it has 6% of the world's arable land and 20% of the total population. In total 50 million people a year are moving from rural to urban areas.
Adani Group in Australia
Yogendra Sharma, Director Rail, Adani
The conference was provided with a comprehensive overview of the Adani Group and particularly its involvement in Australia, where it has significant investments in the coal industry and has major plans for expansion in the coming years.
Mr Sharma said Adani's interest in the Queensland coal sector was being driven by the rapid growth in India's energy sector as the country's economic growth picks up pace and the standard of living rises. Currently India is a very low electricity consumer per
capita but there is likely to be a steep rise in power demand in the coming years. It is estimated that India could require a further 200 million tonne of coal import per annum by the year 2017.
Among the countries which Adani looked at to satisfy its future coal requirements were Mozambique, Southern and South Africa, Indonesia, North America, Columbia and Australia.
In Australia, Adani has a long-term lease over the Abbot Point Coal Terminal (50mt) at the port of Abbot Point, further expansion plans for that facility (35mt) and preferred developer status for a 180mt terminal at Dudgeon Point, adjacent to the Port of Hay
Point. In addition Adani plans to develop the massive thermal coal Carmichael Mine project in the Galilee Basin.
He said the Galilee Basin, which has yet to be opened up to development, provided major opportunities with large-scale mines planned (15 to 60mtpa) and opportunity for annual throughput of in excess of 200mt. Mr Sharma said Adani was working to achieve a late
2014 star-up for its mine, rail and port infrastructure and operations.
East Japan Great Earthquake
and Impacts on Logistics
Tetsuya Shiraishi, Ports and Harbour Bureau, Ministry of Land, Infrastructure, Transport and Tourism
The disasterous earthquake in Japan on 11 March, 2011 had a major impact on port infrastructure in the affected area, with 11 major ports being affected. The gravity of the earthquake and the resultant Tsunami has been widely reported. At the port of Ofunato
the wave height was recorded at 9.5 metres.
Mr Shiraishi's address included a comprehensive series of images showing the wider effects of the tsunami as well as the damage caused to individual pieces on infrastructure in the ports such as on cranes and general port infrastructure such as buildings and
wharves.
Despite the enormous amount of damage, many of the affected Japanese ports made miraculous recovery, with ferry liner services recommencing at Sendai-Shiogama on 28 April, container liner services reopening at the same port on 8 June, a coal carrier docked
at Onahama on 7 June and a grain carrier docked at Ishinomaki on 11 July.
Following the earthquake and tsunami about 65% of supply chain companies interviewed indicated that they planned to review their logistics strategy in the future.
Transhipper Concept Provides
Unique Transport Solutions
Ross Ballantyne, Naval Architect, Sea Transport Corporation
Sea Transport Corporation is offering unique solutions for dust-free bulk transhipper designs for remote mining operations according to Ross Ballantyne.
Sea Transport has a 33 year track record in achieving the highest environmental standards in remote area while also providing cost efficiencies. Mr Ballantyne said that until now bulk exporters in remote areas firstly had to acquire prime waterfront land close
to the export site and build expensive negative pressure storage sheds to hold at least one export shipload.
He said the cost impost on proponents was made worse with the need to arrange an environmental bond to remove the jetty and sheds at the end of the mine's life.
The company's floating harbour transhippers provide an innovative solution which involves construction of a small harbour with a 4 metre LAT depth close to the mine. The harbour can be used for small feeder vessels and provided to the community or traditional
owners at the end of the mine life which negates a removal bond.
Attached to the small harbour is a relatively small negative pressure storage shed with a wet dock for a small feeder vessel to reverse into. The feeder loads between 3,000 and 6,000 tonnes of ore and transports it to the transhipping vessel.
Sea Transport conducted modelling at the Australian Maritime College in November 2010 which confirmed that five metre significant wave heights can be handled without stopping the feeder vessel operations whereas two metres is the normal maximum limit.
Airport Curfews, Slot Allocation and Scheduling
Ernst J. Krolke, CEO, Airport Coordination Australia
Ernst Krolke said curfews were originally introduced about 50 years ago when aircraft were very noisy. Curfews exist in Europe, North Asia and Australia with Adelaide, Sydney and the Gold Coast being the curfewed airports in Australia.
He provided an insight into how the airline industry coordinates its scheduling. Airlines met as early as 1947, twice a year, to coordinate their seasonal timetables for better connections.
The introduction of jet aircraft in 1959 created the need to coordinate movement at congested airports due to airport capacity limitations. Mr Krolke said that increases in flights, new routes and airlines started to result in runway capacity being exceeded
at some airports in the late 1960s, adding runway scheduling to the already in place coordination around apron space and terminal passenger flow.
Currently airlines and coordinators meet twice yearly to coordinate seasonal schedules and obtain slots.
In Australia, international terminal coordination started in Sydney and Melbourne in 1971 and then followed Brisbane, Perth and Darwin and Adelaide, Townsville and Cairns when their small international facilities became available.
Importantly, in 1996 the government limited runway movements at Sydney to 80 per hour, by law.
He also provided an insight into freighter movements, which in most locations are limited. He said 80% of freight is carried on passenger aircraft and the building of pure freighter resources was in most cases too costly.
Navigating the Future - Airports Towards 2020
John McArdle, Chairman, SA freight Council
John McArdle said that the airline industry remains reasonably robust, both within Australia and overseas, with airport and airline companies operating in partnership despite the very different business models under which they operate.
As an example, Mr McArdle provided a graph of passenger movement at Adelaide Airport, showing passenger movement growth plotted against major international events.
Among the issues which the airline industry will need to deal with in the future are:
- climate change and its challenges
- mining/resource boom and its impact on infrastructure
- technology - pilotless freight aircraft
- fuels - natural or bio
- global markets
- curfews and scheduling issues.
Moving the Victorian Grain Task
Terry Garwood, Executive Director, Freight Logistics and Marine, Department of Transport
Terry Garwood provided an insight into the challenges presented by the bumper grain harvest in 2010/11 and the Grain Taskforce which was formed to provide recommendations to the State Government on how to improve the grain supply chain. Among the other tasks
which the group has been looking at have been obtaining data of past and forecast grain flows, assessment of the deregulated grain marketing system on grain storage and transport and analysis of the domestic and export grain supply chain.
The Grain Logistics Taskforce Report identified rail productivity, truck productivity and ships failing survey as being the major issues.
Initiatives recommended to lift rail productivity included reopening the Dimboola-Rainbow line and introducing 10 new grain storage bunkers in the state's north west.
He addressed the issue of the trend in containerisation of grain with the demand for smaller shipments, reduced availability of bulk carriers, the capacity of new grain markets to handle bulk shipments and convenience being the key drivers.
Containerised grain represents about 30% of the trade in Victoria and Queensland, about 20% in NSW, but lesser amounts in South and Western Australia.
New Directions in Global and
National Biosecurity Partnerships
Jonothan Benyei, Assistant Secretary, Cargo and Shipping, Department of Agriculture, Fisheries and Forestry
Jonothan Benyei said there were a range of issues facing the Australian enforcement regulatory and effort against biosecurity threats including:
- new and evolving biology
- complex risk pathways
- human population movement
- economic burden.
He said the regulatory challenges were considerable with increasing traffic, new products from different countries, more destinations and complex supply chains, competing interests, economic impacts and non-compliance being among the challenges.
He said under the biosecurity reform model the issue would be managed via an evidence-based/risk managed approach.
Mr Benyei said it was the department's intention to work closely with industry to ensure the best outcomes are achieved.
Watco Companies - Australia
Paul Green, VP Business Development, Marketing and Government Relations, Watco
Paul Green outlined the history of the company which was started by Charles R. 'Dick' Webb in Pittsburg, Kansas in 1983. Since then Watco has grown to the point where it now operates 4,400 miles of track, 20 short line rail roads, 22 switching locations, 14
mechanical shops, 18 mobile repair locations and 11 intermodal locations. It is a privately held company that operates in 26 USA states and has a team of over 2,000 people.
Watco signed its first global contract in December 2010 with the CBH Group based in Western Australia. The company will haul seven to 10 million tonnes of grain annually for CBH.
Mr Green said grain rail lines needed to be viewed differently to mining industry infrastructure. In WA communities are demanding that grain stays on rail. "The Australian grain industry generally has poor above rail resources and performance remains sub-marginal
and chance and investment is required.
He said that while the company was in its start-up phase in Australia, it was ready to meet the challenges and drive chance.
"It's been tough for both CBH and Watco and there have been many barriers and challenges. It has also been unfortunate that the implementation has aligned with a record crop which is placing huge pressure on logistics during a time of major chance.
"We have been successful in working with QR National in operating their trains with WWAR drivers which has allowed additional tonnage top be moved to the port."
MORE SUMMARIES OF PAPERS IN UPCOMING EDITIONS OF INSIDE ICHCA
New Online Resource for Investors
in Australian Infrastructure
International investors can now access a comprehensive register of Australia's major public-private infrastructure projects with the release of the National Infrastructure Construction Schedule (NICS).
The web-based schedule lists all public-private projects, valued above A$50 million, in Australia's infrastructure pipeline and provides a range of information regarding project feasibility, forward planning and future priorities. The schedule also contains
information on tender opportunities for contracts estimated to be worth more than A$25 million.
Consolidating information from across Australian governments and industry, the NICS creates greater transparency for projects and will assist investors to make informed decisions about Australia's infrastructure pipeline.
Minister for Infrastructure and Transport, Anthony Albanese, said the NICS would facilitate more opportunities for public-private partnership and enhance competition in Australia's infrastructure sector.
"Too often in the past companies have not known what is coming in terms of a pipeline of projects. What this will do is identify not just the projects that are under construction, but also the projects that are the subject of feasibility or scoping studies,"
Mr Albanese said.
"It is hard to over-state the value of this new schedule. Finally investors, both local and international, will have the knowledge and clarity they need to invest in Australian infrastructure."
National Transport Regulator Reforms
The second meeting of the Standing Council on Transport and Infrastructure (the Standing Council) has been held to consider a range of major transport reforms. The Standing Council includes Transport, Infrastructure and Planning Ministers from the Commonwealth,
States and the Territories, New Zealand and the Australian Local Government Association.
Ministers took several major decisions to advance the historic reform process that will see the establishment of national heavy vehicle, rail safety and maritime safety regulators from 1 January 2013. Ministers unanimously agreed to the national law to establish
the Australian Maritime Safety Authority as the National Maritime Regulator of domestic commercial vessels. The national law is to be introduced into Federal Parliament.
Ministers congratulated the South Australian Minister and the National Rail Safety Regulator Project Office on the passing of the Rail Safety National Law through the South Australian Parliament and noted the significance of this milestone in the move to establish
the National Rail Safety Regulator, noting NSW will continue its current approaches to fatigue management and drug and alcohol testing as part of the national regulations.
The council appointed Robin Stewart-Crompton, Coral Taylor, Peter Garske and Vince Tremaine to the National Heavy Regulator Board which is chaired by the Hon Bruce Baird AO. These individuals bring a wealth of skills and experience to the Board, including extensive
transport, business and finance expertise and strong leadership to shape this national body. An announcement on the CEO is expected soon.
Ministers also agreed today to release the National Transport Commission's charging model in a format that is user friendly for industry to improve the transparency of the current charging arrangements and maximise the opportunity for industry engagement in
reforms to the national system of charges.
They also agreed that the National Transport Commission complete a comprehensive review of the heavy vehicle charging system, including the balance of charging mechanisms and a review of the assumptions and methodologies used to determine charges to ensure
they are practical and fair. This review is to be completed by mid-2013.
Ministers also agreed to the adoption of a single national modular B-triple vehicle specification which will enable modular B-triples to have access to the current road train network on the same basis as double (Type I) road trains. This is a significant productivity
enhancement for the heavy vehicle sector.
The council agreed a National Airports Safeguarding Framework, a national land use planning regime to protect airports and communities from inappropriate off-airport development, noting reservations from NSW on the format of the guideline on measures for managing
impacts of aircraft noise.
The agreement represents a collective commitment from governments to ensure that an appropriate balance is maintained between the social, economic and environmental needs of the community and the effective use of airport sites.
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