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IN THIS ISSUE
• Message From ICHCA International Chairman
• Busy ICHCA Lunch Schedule
• Trade Deficit Narrows Sharply
• Competition Tribunal Affirms ACCC Decision to
Open WA Grain Supply Chain to Competition
• DB Schenker Rail on Track for London Gateway
• National Driver Work Diary Improvements Underway
Message From ICHCA International Chairman
Dear Members & Colleagues,
I am writing to inform you of some structural changes to the operations of ICHCA International.
Although we have enjoyed surpluses in our income over two of the past three years, these surpluses were entirely due to our very successful international conferences in Casablanca (2010) and Melbourne (2012). Our operating costs have been increasing and we
cannot solely rely on our international conferences to supplement our membership fees to cover these operating costs. Income generated by membership fees has, for some years, fallen well short of our running expenses. Although our fees are currently still
significantly lower than most comparable organisations, the Board realises there is a limit on how much fees can be increased before it affects membership levels, particularly in the current economic climate.
Addressing this problem, we have welcomed a number of new, younger members to the ICHCA International Board of Directors who bring a strongly positive influence and the drive to change our operations and services to members radically, particularly in the UK,
our home base. We have last year presented the first ever conference in London on the container weights issue and this year another was held on 16 April, again in London.
We will shortly issue a list of seminars, a new training programme and other services to members and industry to be held in the UK, Europe and West Africa over the next two years. In addition, as an accredited NGO at the IMO, ILO etc we have substantially
increased our participation in issues critical to the cargo handling industry where our presence and active involvement is welcomed.
However, this increased level of activity again focuses on our financial situation and we have decided that the office in Romford must close as we move to a virtual office. Staff members have been laid off and all activities will either be carried out by our
Directors or outsourced to relevant and experienced support services. Richard Brough, our Technical Advisor, will continue to handle membership enquiries in the interim.
During the period of transition we have made suitable arrangements to maintain our various programmes through the hands-on engagement of your directors and various service organisations. The website, emails, phone calls and membership services generally will
all be handled in the normal way. We will also bring a new national section into being by creating ICHCA UK which will drive much of the new services we propose.
Although this may seem to be a radical change to many who may wonder how we will be able to continue and expand our services to members, there is in fact a very successful model which we are adapting to the head office functions. The model is the way that many
not-for-profit associations operate, including one of our national sections where there is no office. The secretariat functions, membership services and activities programme are all outsourced to support services and coordinated by the Board.
As an example, the most successful and profitable ICHCA Biennial Conference was managed by ICHCA Australia last year using their existing outsourced support services plus a lot of hard work from many member volunteers.
We believe that the range of new services planned, in addition to the output of our Expert Panel, publications and NGO activities, will guarantee a successful and thriving association well into the future and we look forward to your continuing support.
David Bendall
Chairman
ICHCA International Board of Directors
Busy ICHCA Lunch Schedule
The highly regarded program of ICHCA lunch events continues in various States in 2013.
ICHCA South Australia Luncheon
15 May - Flinders Adelaide Container Terminal (FACT) - The Journey So Far and Future Development - Sponsor Flinders Ports at the Lakes Resort, West Lakes.
Attend the forthcoming ICHCA Luncheon (Wednesday 15 May 2013) featuring Peter Cheers, General Manager, Flinders Adelaide Container Terminal as the guest speaker. Hear how the Flinders
Ports purchase of the terminal has settled and what FACT's plans are for future development of the Outer Harbor Container Terminal. In view of the strategic importance of this facility to South Australia this is a function you can't afford to miss. Hope to
see you there.
Download Registration Details For
ICHCA SA Luncheon
Future SA Lunch Dates are 14 August and 20 November 2013 - speakers to be advised - mark the dates in your diary now.
ICHCA Queensland Luncheon
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5 June
- Aurizon Senior Vice President Coal Business Development, James Moutafis, will be addressing the ICHCA Queensland lunch at the Brisbane Polo Club, Mary Street on: Staged development
of multi-user rail and port infrastructure to support growth in the Bowen and Galilee Basins.
Mr Moutafis joined Aurizon (formally QR National) in 2010 with extensive international management experience in the mining and logistics industries.
During his 25 year career, he has held senior positions in Australia and Asia at Linfox Australia, P&H Mine Pro, the Patrick Group and Brambles. At Linfox Australia, Mr Moutafis had profit responsibility for eight major businesses and established start-up operations
in India, Thailand and China.
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As Senior Vice President of Coal Business Development at Aurizon, he oversees the development of Aurizon's business in the coal sector, both within Australia and world-wide. Mr Moutafis leads a team of professional
rail operators, rail engineers, logisticians, commercial analysts and supply chain advisors to develop complete supply chain solutions for his customers.
Download
Registration Details For ICHCA QLD Luncheon
ICHCA New South Wales Luncheon
20 June - Sydney Ports: The Port of Botany Journey - Realising the value of Port Assets.
Sydney Ports Corporation CEO, Grant Gilfillan, will be the luncheon speaker at the next ICHCA luncheon at the Lakes Golf Course 12-2pm.
Grant Gilfillan will speak at the Sydney lunch after taking on the role of International President of The International Association of Ports and Harbours when the organisation meets for the 28th World Ports Conference in Los Angeles from 6-10 May.
Mr Gilfillan has been actively involved in the organisation and has helped to broaden awareness of the Australian ports sector through his influential involvement.
There has been keen interest in the conference with one of the speakers being Captain Richard Phillips, captain of the hijacked Maersk Alabama by Somali pirates. He will kick off sessions in LA by delivering a keynote address on his experience as a hostage.
Other topics which will be covered include:
• Piracy and efforts to curb piracy
• Best practices in port finance
• The emergence of LNG-powered vessels and handling/transport through ports
• Global warming and climate change
• Port Community Systems
• Port trucking logistics
• Zero Emissions strategies among global ports
• Managing the landside of the cruise business
• Advancing women in the port and maritime industries.
For more details, contact John Strang. Email:
jstrang@stxgroup.com.au
Trade Deficit Narrows Sharply
Australia's seasonally-adjusted trade deficit narrowed to $178 million in February, as the value of exports increased across most categories compared with January. The Australian Bureau of Statistics reported that total exports of goods and services for the
month were worth $25.6 billion, 3.3% more than in January. Imports dropped by just under 1%, to $25.8 billion.
The resulting $178 million deficit compares with a revised $1.2 billion deficit in January and is well ahead of consensus forecasts of around $1 billion. The exports total was also almost 4% higher than a year ago.
Australia's merchandise exports to East Asia rose by more than 2% in February, led by a nearly 19% surge in exports to the 10 ASEAN economies. Overall, the value of non-rural goods exported increased by 4.4%, or $714 million, to $17 billion. Resources exports
rose 2.5% to $12.6 billion, led by an 11.6% increase in coal, coke and briquettes and a 3% increase in metal ores and minerals. Manufactures exports rose by just over 12%, or $374 million, to $3.5 billion.
Rural goods exports were also up, by 7% to $3.1 billion. Services exports rose by just under 1%, or $38 million, to $4.3 billion.
Competition Tribunal Affirms ACCC Decision to
Open WA Grain Supply Chain to Competition
The Australian Competition Tribunal has affirmed the Australian Competition and Consumer Commission's (ACCC) decision to revoke Co-operative Bulk Handling Limited's (CBH's) exclusive dealing notification, which allowed CBH to require Western Australian grain
growers and marketers who use its 'up-country' storage facilities to also use its transport services to deliver grain to port for export.
"The Tribunal's decision means that for the first time since deregulation of wheat export marketing in 2008, growers and marketers in WA will be free to make their own arrangements for transporting grain to port for export," ACCC Chairman Rod Sims said.
"Importantly, the decision does not affect CBH's ability to continue to offer WA growers a bundled storage and transport option, currently known as Grain Express. The effect of the Tribunal's decision is simply that growers and marketers storing grain with
CBH will no longer be forced to use CBH's Grain Express system to move their grain."
In 2008 CBH lodged a notification with the ACCC in relation to this conduct. Notifications provide statutory protection for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010 (formerly the Trade
Practices Act 1974).
In June 2011, the ACCC revoked CBH's notification, removing the statutory protection from legal action for CBH to engage in the notified conduct. The ACCC revoked the notification because it was concerned that the conduct foreclosed competition for the supply
of grain transport services. CBH sought a review of the ACCC's decision by the Tribunal.
The Tribunal concluded that the notified conduct substantially lessened competition for the supply of grain transport services in WA and that any benefits in CBH controlling all grain movements did not outweigh the public detriment resulting from the substantial
lessening of competition.
Revocation of the notice will come into effect on 20 May.
Background
Businesses may obtain protection in relation to conduct that might be at risk of breaching the exclusive dealing provisions of the Competition and Consumer Act 2010 by lodging a notification with the ACCC. Once lodged, protection for the notified conduct begins
automatically, or in the case of third line forcing, after 14 days. The ACCC may revoke a notification if it is satisfied that the conduct has the purpose, effect or likely effect of substantially lessening competition and that it does not deliver a net public
benefit. A person dissatisfied with the giving of a notice revoking a notification may apply to the Australian Competition Tribunal for review of the notice.
DB Schenker Rail on Track for London Gateway
DB Schenker Rail was the first rail freight company to announce regular services from the UK's newest deep-sea container port London Gateway. With opening day approaching, we catch up with Carsten Hinne, Managing Director DB Schenker Rail UK (Logistics) to
find out how the preparations are going.
Q: Construction at London Gateway is proceeding apace and the arrival of the quay cranes marks another milestone. This must be an exciting time for DP World and DB Schenker Rail?
A: Absolutely. The cranes are 138 metres tall and will be the first in the UK to lift four containers at once, which will ensure efficient unloading of the world's largest ships. It's impressive to see how the site has been transformed over the past few months.
We've been working closely for several years now with London Gateway in order to offer innovative supply chain solutions from the new port. It's exciting to see these efforts coming together. We're now looking forward to the opening of the rail terminal and
to running the first container train into the port.
Q: Carsten, you say you've been preparing for the opening of London Gateway for some time now. Can you tell us what specific steps you're taking to be ready for day one?
A: Of course, we are already planning our first door-to-door services to the Midlands, the North West and Yorkshire. We are also making significant investments in information technology and in our wagon fleet in order to support these services.
Q: Tell us more…
A: DB Schenker Rail UK is implementing a new IT system called Anubis that will revolutionise our order-to-cash capability. It provides tracking along the whole supply chain as well as full EDI integration with customers and partners. This will support our door-to-door
service and provide additional functionality for our customers. Anubis will be the most advanced ordering system in the market; It demonstrates the advantage of having the strength of the DB group behind us and underlines DB Schenker Rail's position as innovation
leader.
Q: You also mentioned wagon investment?
A: Yes. We are undertaking a significant investment project to modify 72 intermodal wagons which will operate on daily freight services to and from London Gateway. The modification to the 60ft wagons, which will reduce their deck height to 1 metre, will allow
DB Schenker and therefore our customers to carry more Hi-cubes on W10 routes, thereby responding to the growing number of Hi-cubes in the market. The wagons are set to become a familiar sight when services to and from Britain's new super-port commence in Q4
2013.
Q: So what impact do you think London Gateway will have?
A: London Gateway is a huge investment that will boost the UK economy and revolutionise the maritime intermodal supply chain. Advanced technology and 700m long trains promise a step-change in productivity. It is the first time that large shippers will have
a real choice of rail freight providers, who will be operating on a level playing field out of the new port. We are investing in our service and intend to offer innovative supply chain solutions with better quality and higher capacity than our competitors.
This competition will be good for the port, good for the industry and good for the economy.
Q: We've heard about London Gateway, but what about other ports?
A: London Gateway is obviously a great opportunity for DB Schenker Rail to grow its intermodal business, but rest assured that we are also pursuing the same strategy in other ports! Neutrality is important in this industry: Just as ports have to treat rail
freight operators equally, we too work equally hard with all ports to serve our customers. Our investments in IT and wagons will of course strengthen our whole intermodal network: We aim to offer our customers the best possible service from all ports and to
seek growth opportunities wherever these occur. We are working closely with all port operators to do this.
Executives from DB Schenker Rail will be on hand to talk about intermodal developments and the innovative partnership with DP World London Gateway at Multimodal - the UK and Ireland's leading freight transport and logistics exhibition which takes place at Birmingham
NEC from 23 to 25 April, 2013.
National Driver Work Diary
Improvements Underway
The National Transport Commission, in partnership with the National Heavy Vehicle Regulator, industry and governments, is revising the National Driver Work Diary to reflect the requirements contained within the new Heavy Vehicle (Fatigue Management) National
Regulation 2013.
The new Regulation will come into effect as part of the new national heavy vehicle laws, later this year, and will be administered by the new National Heavy Vehicle Regulator (NHVR).
The NTC's Acting Chief Executive, George Konstandakos, said the work diary is an important part of managing fatigue for drivers of heavy vehicles. "The regulations require that work diaries are used to ensure that drivers and other parties in the supply chain
meet their fatigue management obligations.
"The changes to the diary bring it into line with the new fatigue regulations which were approved by the Standing Council on Transport and Infrastructure in March 2013. The new diary will have simplified daily sheets and will also be accompanied by advice on
the fatigue laws so drivers can easily reference information most relevant to their duties.
"These changes will make it simpler, quicker and clearer for drivers to fill out the daily sheets as there is less information required and not as much duplication," Mr Konstandakos said.
Some of the other amendments include:
• drivers will only have to record their vehicle registration once a day or if their vehicle changes, rather than at every break
• drivers will only have to record the location and odometer reading at the start of a rest break, and not when finishing their break too
• drivers will only be required to record their operator's Basic Fatigue Management (BFM) or Advanced Fatigue Management (AFM) accreditation number once in the diary (or again if it changes), rather than on every daily sheet
• solo drivers are no longer required to record the state or territory where their licence was issued
• a new optional comments section is included to allow recording of information such as delays and notes made by authorised officers.
"Over the past two years, one of the most consistent pieces of feedback we've had from industry has been the desire to see a simpler work diary and more flexible and practical fatigue management regulations," said Richard Hancock, CEO of the NHVR. Improving
the work diary, and improving the law, will help drivers, and other responsible parties in the supply chain, to ensure that their focus on managing fatigue isn't diminished by undue difficulties in managing the paperwork.
"The new diary will reduce any possibility that a 'paperwork error' could lead to a fine, while still ensuring that critical information regarding fatigue management and rest breaks is clearly recorded. There will be no reduction in the effectiveness of road
safety law enforcement; in fact, we'll be even more focused on the things that really matter.
"The NHVR is very pleased that one of the first products we will deliver will be something that makes a real on-the-road difference to Australia's heavy vehicle drivers, who are the foundation of our transport industry. We're delighted by the cooperative and
supportive working arrangements developed between the NTC and NHVR to advance this practical reform," Mr Hancock said.
The NHVR will work with the States and Territories to make the new work diary available for sale nationwide. Transition periods and other phase-in arrangements will be announced in due course.
Mr Konstandakos thanked the National Driver Work Diary working group which has assisted the NTC to revise the work diary.
Members of the working group included governments, the National Heavy Vehicle Regulator, the Transport and Logistics Industry Skills Council (TLISC), Australian Trucking Association (ATA), NatRoad, Queensland Trucking Association (QTA), Australian Livestock
and Rural Transporters' Association (ALRTA), National Road Freighters Association (NRFA) and the Long Haul Drivers Association.
Feedback on the proposed changes to the National Driver Work Diary can be provided to the NTC until 20 May 2013 through the NTC website or by post to Att: National Driver Work Diary, National Transport Commission, Level 15/628 Bourke Street, Melbourne Vic 3000.
The final version of the diary will be considered by the NHVR Board at the end of May 2013.
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