DP World opens Botany Intermodal

DP World Logistics Australia has opened its Botany Intermodal site, with the official launch ceremony led by the Hon. Melinda Pavey, Minister for Roads, Maritime and Freight – New South Wales.
Paul Scurrah, Managing Director and CEO; and Mark Hulme, Chief Operating Officer – Logistics, customers, industry stakeholders and employees joined Minister Pavey in opening the site in Port Botany.
Scurrah dedicated the opening of the event to Anil Wats, DP World Executive Vice President and Chief Operating Officer, who recently passed away.
Minister Pavey spoke about the important role of New South Wales’ intermodal facilities and rail networks facilitating the movement of export goods through our ports from regional areas.
Hulme thanked the DP World Logistics Australia team for their work in launching the new site.

ACCC to keep an eye on stevedores’ spending

The ACCC’s annual Container Stevedoring Monitoring Report has found that while stevedoring operating profits per TEU have risen by over 25 per cent in 2016-17, competition levels are set to increase as there are now three stevedores competing at the nation’s three largest container ports.
“Competition has significantly increased in recent years with the introduction of a third stevedore in Sydney and Brisbane, and now we can add Melbourne to that list. As such, we expect to see greater levels of price competition as new entrants and incumbents compete for market share,” ACCC Chairman Rod Sims said.
“Stevedores will need to work harder to win or retain their customers, with benefits flowing through to shipping lines, importers, and exporters.”
“However, this remains a critical period for competition. For sustainable competition to develop, these new entrants will need to win a commercially viable share of the market,” Mr Sims said.
Charges under scrutiny
Both DP World and Patrick recently either introduced or substantially increased ‘infrastructure charges’ at a number of ports for transport companies collecting or dropping off containers. The stevedores claim that the higher charges are necessary because of rising property costs and the need to fund new investment. While there is merit to the stevedores’ claims about higher property costs, their overall costs remain stable.
“Whilst it is true that the stevedores are facing higher property costs, the ACCC will be interested to see whether these infrastructure charges are used to improve landside facilities beyond business as usual levels,” Mr Sims said.
“It is concerning that truck and rail operators face these higher charges but are limited in their ability to take their business elsewhere.”
Some organisations approached the ACCC with allegations that the new infrastructure charges may have been in contravention of provisions of the Competition and Consumer Act 2010. Most of the concerns were that the price increases were excessive, but there are no provisions in the Act to deal with excessive pricing.
Shipping lines benefitted from lower prices as the stevedores reported falling unit revenues in 2016-17. Stevedoring revenue fell 4.5 per cent to $138.8 per TEU. This has continued a very consistent trend as unit stevedoring revenue is about a quarter less than a decade ago in real terms.
The number of containers passing through Australia’s ports is the highest ever recorded. In 2016-17 Australian stevedores handled 7.2 million TEU, an increase of 3.7 per cent.
The report also found that quayside productivity remains close to record levels. However, both capital and labour productivity fell slightly.
“The stevedoring industry is not reporting the same level of productivity improvements that we have seen in previous years. With the new stevedores now in place along the east coast ports, we will be looking for this productivity growth to return in future,” Mr Sims said.
The ACCC’s Container stevedoring monitoring report 2016-17 report is available here.

DPWA announces senior appointments

Container port operator DP World Australia has announced changes in leadership for its Fremantle operations and Continuous Improvement business unit.
Replacing Luke Westlake as Fremantle General Manager Operations will be Stefan Reynolds, effective 11 December 2017.
For the past nine months, Reynolds has led process improvement projects in Melbourne and nationally as Head of Continuous Improvement, Operations.
“With over 10 years’ operational experience in the container transport and logistics field, Stefan brings a high calibre of operational and change leadership experience to Fremantle,” said Max Kruse, Chief Operations Officer – Terminals, DP World Australia. “In his recent position as Manager of Capacity, Planning, Gate and Operations Projects with Ports of Auckland, Stefan worked closely with a large team as well as other departments, to continuously focus and strive for exceptional levels of performance and customer service.”
In Melbourne, Troy Sparkman will join the DPWA team as Head of Continuous Improvement, Operations, effective 30 October 2017.
According to Kruse, Sparkman has 28 years’ experience in the rail transport and logistics industry, and worked in most states and regional areas of Australia during that time.
“Troy has a significant understanding of supply chain and operational management,” Kruse added. “Having held general manager roles with Aurizon, most recently as the General Manager service delivery for the interstate intermodal business, and Regional Integration Manager responsible for operational optimisation and transformation of the Hunter Valley and West Moreton supply chains.”

DPWA appoints executives to Melbourne and Sydney Terminals

DP World Australia has announced the appointment of executives for the General Manager – Operations position at its Melbourne and Sydney terminals.
Robert Snow joins as General Manager – Operations at the Melbourne terminal, effective 30 October. He brings with him over 20 years’ experience in the logistics and transport industry. He was previously Chief Operations Officer at APM Terminals for the Aqaba Container Terminal in Jordan.
The new General Manager – Operations for the Sydney terminal is Bas Hokke, previously Vice President – Group Operations at Asian Terminals Incorporated (ATI), part of the DP World Group in the Philippines. Hokke brings with him more than three decades of global ports experience. He will enter the role on 22 November.
DPWA Chief Operations Officer – Terminals, Max Kruse, thanked Rowan Bullock and Ray Lee, who have been acting in the roles during DPWA’s global search for the roles.
“Their professionalism, guidance and leadership was invaluable to the teams in Melbourne and Sydney, and to the wider Operations Team, and we are incredibly grateful for their support,” Kruse said. “Rowan and Ray will provide a detailed handover to the new General Managers – Operations, and will continue to lend us their knowledge and experience through an ongoing working relationship with the Operations Team, beyond their respective departures.
“Thank you to Rowan and Ray, and a very warm welcome to Robert and Bas.”

Botany Intermodal secures shipping line customer

DP World Logistics Australia has announced a new customer for its Botany Intermodal site – container shipping firm Hapag-Lloyd, which specialises in reefer cargo, dangerous goods and special cargo projects.
Hapag-Lloyd will use Botany Intermodal as its primary Sydney empty depot.
“We are thrilled to announce Hapag-Lloyd as our cornerstone customer,” said Mark Hulme, Chief Operating Officer – Logistics, DP World Australia. “Botany Intermodal is committed to delivering Hapag-Lloyd exceptional service levels going forward.
“We’re proud to offer Sydney’s only 24/7 empty container park operation.”
System interface testing between Hapag-Lloyd and DP World Logistics Australia is under way and a further announcement to industry will made when containers can be directed into Botany Intermodal.

‘Monopoly charge’ to hit Fremantle

Effective 30 October 2017, DP World Australia will introduce a charge at its Fremantle Terminal as part of the basis for which access to the terminal is granted, for both road and rail operators.
“The announcement by DP World that it will impose an Infrastructure Surcharge of $8.22 on all full containers handled through its Fremantle Terminal from 30 October 2017 is yet another example of stevedore monopolistic behaviour, and again highlights the lack of an adequate response from Australia’s competition watchdog and Australia’s Federal and State Governments,” said Container Transport Alliance Australia (CTAA) director Neil Chambers.
“Having seemingly got away with it on the east coast by imposing new and significant increased Infrastructure Surcharges in Melbourne, Sydney and Brisbane earlier this year, DP World has again got its hand in the pockets of container transporters and their import & export clients, this time on the west coast.
“These Infrastructure Surcharges are almost double those imposed by Patrick Terminals in Fremantle in July ($4.76 per full container), and are being imposed on a unilateral basis with no consultation with those expected to pay.
“Mid this year, ACCC chairman Rod Sims, offered a view publicly seemingly linking the east coast fee hikes with the negative aspects of port privatisation. What then is the ACCC chairman’s view about it happening (again) in a publicly owned major capital city port?
“As observed by our freight forwarder and shipper representative colleagues, Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA), it’s now clear that we’ve descended into a commercial container logistics chain pricing model where the end-payer doesn’t get to decide or have any influence over the outcome.
“The position of CTAA Alliance companies remains the same (again): the stevedores should either absorb increased operating costs, improve their productivity, or negotiate their collection through their commercial clients, the shipping lines.
“As we said when Patrick Terminals made its Fremantle Infrastructure Surcharges public in June, it is very disturbing that the stevedores can simply offset their rising costs by unilaterally implementing levies on parties in the supply chain who have no strong contractual relationship with the stevedores, with no consultation and at short notice.
“How is the money to be collected by DP World going to be spent in Fremantle? The statement by DP World claims that they have ‘invested in critical infrastructure to keep pace with industry expectations’,” Mr Chambers said.

DPWA introduces Fremantle surcharge

DP World Australia (DPWA) has announced that it will introduce a charge at its Fremantle Terminal as part of the basis for which access to the terminal is granted, for both road and rail operators, from 30 October 2017.
In a media release, Luke Westlake, General Manager – Operations, DP World Fremantle, stated that the charge reflects a “considerable” rise in property costs at Fremantle Terminal in the last five years.
“DPWA has incurred material increases in the costs of occupancy of more than 25 per cent, covering the cost of council rates, land tax and rent,” Westlake said. “DPWA avoided passing these costs onto the supply chain over this period, attempting to offset them through efficiency improvements. Despite, DPWA’s continued efforts, these material step changes in costs cannot be offset.”
He also cited investment DPWA has made in infrastructure to “keep pace” with industry expectations, and to handle greater peaks and troughs in cargo arrival patterns.
The surcharge will be $8.22 (excluding GST) per container and will apply to all full containers received or delivered to/from landside operators at Fremantle Terminal.
Full containers received or delivered via road will be charged to the road carrier through the 1-Stop Vehicle Booking System, while full containers received or delivered to rail will be charged to the rail operator as a separate item on the invoices produced.
“Ongoing access to Fremantle Terminal will be conditional on payment of the charges as per our conditions,” Westlake added.
DPWA noted in an additional statement that the surcharge is necessary to maintain productivity levels at the Terminal.
“This is a modest charge, which takes into consideration not only rising costs but the investment required to ensure our terminals continue to provide the highest levels of productivity,” the statement said. “This comes amidst the greatest levels of competition in Australian stevedoring history.”
Paul Zalai, Director of the Freight Trade Alliance (FTA) and Secretariat at the Australian Peak Shippers Association (APSA) advised that representatives of both the FTA and APSA will meet Federal Minister for Infrastructure and Transport Darren Chester MP in Canberra on 19 September in a bid for his help in stemming the tide of surcharges.

DP World announces resignation of CCO

DP World Australia Managing Director and CEO, Paul Scurrah, has released a statement on the resignation of Chief Commercial Officer, Brian Gillespie, who will finish at DP World later in September.
“After four years with DP World Australia, Brian has accepted a role with Orica Asia Pacific and leaves our business in a significantly stronger position than when he commenced,” said Scurrah.
“In his time with DP World Australia, Brian has contributed significantly to our achievements as an organisation, ensuring DP World Australia maintains its position as the number one stevedore in Australia.”
“A valued member of the Executive Leadership Team, Brian’s expertise in strategy, mergers and acquisition and large scale commercial, operational and business process improvement was an asset to our business. His holistic approach and drive presented many opportunities in new business areas for DP World Australia.”
Scurrah thanked Gillespie on behalf of DP World Australia for his “tireless dedication” and the “enormous contribution” to the business.

Kalmar to deliver container handling machines to DP World Logistics Australia

Container handling technology manufacturer Kalmar, part of Cargotec, will deliver 38 new machines to DP World Australia’s recently launched logistics arm, DP World Logistics Australia.
The order includes seven Kalmar reachstackers, and 11 loaded and 20 empty container handlers. So far, 22 units have successfully been delivered to DP World Logistics Australia’s Botany Intermodal terminal, with the remaining equipment to be delivered by September 2017.
The new machines add to DP World Australia’s existing fleet of Kalmar rubber-tyred gantry cranes (RTGs), straddle carriers and terminal tractors and will serve operations in Sydney, Melbourne, Fremantle and DP World Australia’s semi-automated terminal in Brisbane.
The Kalmar reachstackers will be equipped with Kalmar K-Motion transmission technology, which secures uptime and productivity while reducing fuel consumption and emissions. Four units will also include overheight legs. All the Kalmar machines will be powered by Volvo IV Final engines to meet emissions standards and will feature the Kalmar SmartFleet system for performance-boosting remote monitoring and reporting.
“Kalmar won a competitive tender to renew, and increase, our fleet of machines in all our facilities around Australia,” said Ron French, National Engineering Manager at DP World Australia. “Our existing relationship gave us leverage to secure the best outcome for DP World Australia, with respect to pricing, service and ongoing support. The K-Motion option was very attractive due to lower fuel consumption and environmental impact.”
Michael Wahab, Director Mobile Equipment at Kalmar, added, “We are happy to continue to serve DP World Logistics Australia with reliable and efficient equipment tailored to their needs. The units are also equipped with environmentally conscious technology, including innovative K-Motion technology to significantly lessen fuel usage and reduce emissions by up to 40 per cent.”

DP World buys more Kalmars for subsidiary

DP World Australia has signed orders for 38 new machines for its new logistics arm, DP World Logistics Australia. The orders include 7 Kalmar reachstackers, 11 loaded and 20 empty container handlers. 22 units have already been delivered to DP World Logistics Australia’s Botany Intermodal terminal, with the remaining equipment to be delivered by September 2017.
The new machines add to DP World Australia’s existing fleet of Kalmar rubber-tyred gantry cranes (RTG), straddle carriers and terminal tractors and will serve operations in Sydney, Melbourne, Fremantle and DP World Australia’s semi-automated terminal in Brisbane.
Kalmar reachstackers will be equipped with Kalmar K-Motion transmission technology, which is said to secure uptime and productivity while reducing fuel consumption and emissions. Four units will also include overheight legs. All the Kalmar machines will be powered by Volvo IV Final engines to meet emissions standards and will feature the Kalmar SmartFleet system for performance-boosting remote monitoring and reporting.
National engineering manager at DP World Australia Ron French said: “Kalmar won a competitive tender to renew, and increase, our fleet of machines in all our facilities around Australia. Our existing relationship gave us leverage to secure the best outcome for DP World Australia with respect to pricing, service and ongoing support. The K-Motion option was very attractive due to lower fuel consumption and environmental impact.”
 
 

©2019 All Rights Reserved. MHD Magazine is a registered trademark of Prime Creative Media.