The Australian Logistics Council (ALC) has announced that its 2017 Supply Chain Safety & Compliance Summit will take place 5–6 September at ICC Sydney. With the Government continuing to develop the National Freight and Supply Chain Strategy, this year’s Summit will consider how the Strategy can be used to improve safety outcomes in the freight logistics industry. Another key focus at the Summit will be the significant extension to Chain of Responsibility, set to come into force in 2018, that will extend the legal obligations and liabilities of executive officers and company directors. The 2016 Summit brought together over 300 industry representatives to benchmark, share best practice and identify gaps where improvements are needed. The 2017 Summit will again attract representatives from all parts of the supply chain, including customers, suppliers and logistics providers. “The Supply Chain Safety & Compliance Summit is a valuable opportunity to raise awareness of changes to CoR obligations and advise industry on improving safety and compliance levels,” said Michael Kilgariff, Managing Director, ALC. “The event will serve as a platform for policy discussions, workshops and consultations and we look forward to an active and engaging series of discussions.” Find out more.
The Maritime Union of Australia (MUA) has stated that it feels that some of the money earmarked for the $8.4 billion Melbourne-to-Brisbane Inland Rail project could be better spent on investment in Australia’s coastal shipping sector. MUA National Secretary Paddy Crumlin said that while the MUA agrees Australia should be trying to get trucks off the roads, the sea offers the best alternative. “Port infrastructure already exists in Australia and coastal shipping leaves the lowest carbon footprint when it comes to moving goods around our coast,” Crumlin said. “This package from the Government looks a lot like pork-barrelling by the Coalition to protect their inland seats through regional Victoria, NSW and Queensland as they desperately try to stave off the threat from One Nation and other parties.” “A strong domestic shipping fleet makes absolute sense from a national security, fuel security, and environmental standpoint,” Crumlin added.
Logistics services provider Logwin Air & Ocean Australia has moved to a new logistics facility in Kewdale, Perth. The 1,200sqm facility is fully bonded and provides storage for pallets in high-bay racking and bulk goods areas. Like other Logwin warehouses, the facility is controlled by the company’s own warehouse management system (WMS). The operation is fully paperless by deploying handheld devices exchanging data with the WMS in real time. “The opening of the Perth distribution centre provides a milestone in enhancing the national network of strategically located logistics facilities,” the company said in a statement. “It will allow Logwin to provide supply-chain solutions to the Australian and global customer base fully within the companies own network of office and warehouse facilities, thereby improving speed and accuracy of the company’s service delivery.” The location for the facility was chosen due to its proximity to Perth Airport and Perth CBD as well as the fast access it provides to Western Australia’s regional and far northern hubs.
Asset pooling beverage transport company Kegstar, owned by Brambles Limited, has announced the appointment of a new General Manager Australia & New Zealand, Nick Boots. Boots brings over 20 years’ experience in the fast-moving consumer goods (FMCG), beer, wine and supply chain industries, having worked for Nestlé, CUB, Fosters Wine Estates, McWilliams Wines Group and Supply Chain Services Australia. Kegstar owns and manages stainless steel kegs on behalf of its customers – collecting empty kegs and redeploying them to other customers in the pool. Each Kegstar keg is uniquely identified and tracked when the keg moves through the supply chain. The business launched in December 2012 with 880 kegs, one person and one customer. Global supply chain logistics company Brambles acquired a 30 per cent stake in March 2014 and moved to 100 per cent ownership on 1 December 2015. In Australia and New Zealand, Kegstar now owns in excess of 100,000 kegs that it rents to more than 150 customers each year. “I am honoured to be working with the amazing team at Kegstar in Australia and New Zealand,” said Boots. “The Kegstar keg pooling model is the ideal format for brewers, cider producers, wineries and spirits producers looking for a keg solution that will take their business to the next level. “Having worked with world-class brands over the past 20 years, I look forward to tapping into my own experience to ensure we continue to provide outstanding service offerings to our customers, partnering with them as they delight consumers.
Transport and logistics company Linfox is set to undergo a major leadership reshuffle at the start of July that will see a quintet of internal talent take on key management roles. The re-organisation will ensure Linfox’ continued growth and ability to adapt to the evolving needs of its clientele, according to Executive Chairman Peter Fox. As part of the change, ex- FMCG President Greg Thomas will replace Gabby Costigan as CEO of Linfox International Group. Thomas, who joined Linfox in 1995 and has since held several financial and operational roles, previously led the development of Linfox’s eCommerce and fulfillment strategy, which is “set to change the way Linfox does business by broadening our customer base and offering our customers new channels to market,” as the company explained in a media statement. Thomas will be based in Bangkok and joins the business in Asia with previous experience managing the logistics portfolios for key customers in Vietnam, Malaysia, Indonesia and Hong Kong in his FMCG role. He will also maintain responsibility for Linfox’s healthcare portfolio as Director – Linfox Healthcare. “[Thomas] will build on the strong business leadership and strategic direction of Gabby Costigan,” Fox commented. “I thank Gabby for her significant contribution to LIG. In her three years in the role, Gabby has been diligent in her dealings with our business and a strong advocate for Linfox across the region.” Ex-BevChain CEO Kylie Fraser will take over from Thomas as FMCG President. “Kylie has an impressive logistics career spanning more than 20 years,” Fox commented on the move. “Kylie has led BevChain for six strong years. In her time as CEO, BevChain has doubled its revenue while continuing to deliver outstanding supply chain solutions for its customers.” Replacing Fraser as CEO of BevChain will be Matthew Sheridan. “Matt has strong experience in the beverage supply chain,” Fox added. “His experience overseeing significant national contracts has provided a firm understanding of the demands of manufacturers and retailers.” Also part of the new leadership group is former Linehaul President Mark Mazurek who will be appointed COO of Linfox Australia and New Zealand and continue to report directly to Linfox CEO Annette Carey. “In this newly created role, Mark will be responsible for the day-to-day running of Linfox Logistics, ensuring that every part of the business is performing at its peak and delivering the best possible service to our customers,” Fox explained. The final piece to the puzzle is the appointment of Ian Strachan as President of Linfox Intermodal, the company’s former Linehaul business. According to Fox, the business unit has been renamed to better reflect the size and scope of the team’s work. “As President Linfox Intermodal, Ian will oversee the provision of interstate transport by road, rail and sea,” he said. “It is a true reflection of Linfox’s investment in people development. All these candidates demonstrate behaviours consistent with our LIFT values of loyalty, integrity, fairness and trust. “I am delighted to appoint these well-deserving, talented individuals to key leadership positions in our business,” Fox concluded. “It is wonderful to see all these roles being filled by internal candidates.”
The launch of the Moorebank Logistics Park has been described by the Australian Logistics Council (ALC) as a “watershed moment” in the continuing transformation of Australia’s freight networks. “Given the Federal Budget’s significant investment in freight infrastructure and the continuing development of the National Freight and Supply Chain Strategy, it’s an auspicious moment to mark the establishment of what will become the nation’s largest intermodal freight precinct,” said ALC Managing Director Michael Kilgariff. “This nationally significant project was included on Infrastructure Australia’s Infrastructure Priority List and, according to government figures, is expected to create some 6,800 jobs and deliver $11 billion in economic benefits over the next three decades. The strategic location of this site, at the very heart of New South Wales’ freight network, is second to none.” Kilgariff added that more efficient road and rail connections from ports to intermodal facilities would be key in meeting the country’s growing freight task, reducing road congestion and improving community amenity. “The Moorebank facility is central to achieving this around Sydney’s heavily congested M5 corridor,” he added. “At the same time, its ability to transport 1.5 million TEU each year from Port Botany by rail will support the NSW Government’s goal of boosting rail freight to and from that port from its current 18 per cent to around 30 per cent. Likewise, it accords with NSW Ports’ objective of moving three million TEU by rail by 2045.” “ALC has long argued that building a reliable, national network of intermodal facilities is central to boosting rail’s contribution the national freight task. Moorebank will complement other intermodal facilities throughout NSW, including Aurizon’s operations at NSW Ports’ Enfield Intermodal Logistics Centre, and Pacific National’s facility at Chullora.” “Both Moorebank Intermodal Company and Qube Holdings deserve enormous credit for their intensive efforts bringing Moorebank to fruition. The success of this intermodal facility is set to deliver transformational improvements to supply chain efficiency,” Kilgariff concluded.
In January 2015, Bohai Leasing Co. of China acquired Cronos Containers Pty Ltd and subsequently integrated the container leasing activities into Seaco Global. Bohai is controlled by HNA, a large Chinese conglomerate engaging in transportation, logistics, tourism, hotel, property, airport management, financial services and retail. Since the amalgamation of Seaco and Cronos, Seaco has been strengthening its presence worldwide and in Australia, establishing representation in Perth, new sales offices in Brisbane and Sydney and building the Seaco/HNA brand, whilst meeting the needs of existing clients and developing new business relationships. Peter Folkard, Regional Vice President – Oceania & Americas, said he is proud to have formed a collaboration with Sydney based Container Rotation Systems (CRS). “We are delighted to be working in association with CRS due to the compatibility and capability of their automatic lid lifting and container rotation system compatible with our half-height containers,” Folkard said. “These are very exciting times for Seaco Global Australia and we are looking forward to developing projects in other locations worldwide.” The Australian team’s success has been backed by access to a global leasing fleet and portfolio of equipment including: general purpose containers; ISO bulk liquid, powder and gas tanks; refrigerated and temperature-controlled units and specialised container types (suitable for bulk items). The company is particularly keen to support Australia’s agriculture and farming; construction, defence, food, government, logistics, manufacturing, mining, oil and gas and waste sectors. Seaco Global Australia has also announced the launch of a new website to help reinforce the company’s brand positioning in the local marketplace: www.seacoglobal.com.au
Digital platforms and business models built around sharing not owning assets presents a significant future opportunity for the logistics industry according to the findings of the new Trend Report released by DHL. The report, ‘Sharing Economy Logistics – Rethinking logistics with access over ownership’ provides insights into understanding the ‘sharing economy’, best practices in the sharing economy from other industries, and practical applications of the sharing economy within the logistics value chain. “The concept of sharing is nothing new, but today people can share assets and use sharing services at the speed and scale of three billion smartphone users worldwide, said Matthias Heutger, Senior Vice President Strategy, Marketing & Innovation, DHL Customer Solutions & Innovation. “Naturally this started with high-value assets like rooms and cars, but the underlying concept can be applied to almost anything now. “Logistics providers can really benefit from sharing their own assets, as well as facilitate the sharing of goods that are a hassle to transport. Digital sharing platforms give instant access to what’s available from online networks of users, including but not limited to hotel rooms, taxis, construction equipment household items and even people’s personal time or skills. Logistics providers can leverage these developments via more cost-effective usage of warehouse space, more efficient transportation and delivery methods, or flexible staffing models.” In a sharing economy, individual or organisation users get temporary access to an asset, service or skill owned by someone else and which would otherwise be underused. Not only does this maximise Return on Investment through greater utilisation, it also produces a new revenue stream in the form of rental fees for the asset owner. DHL asserts that sharing is good for the environment as it leads to fewer new assets being produced, and existing ones are being used more often. In its early days, DHL employed an early form of crowd sourcing, offering free plane tickets to private travellers in exchange for giving up their baggage allowance to transport critical shipping documents. By delivering the original bill of lading by plane before the containers arrived by ship, DHL sped up the customs clearance process and paved the way for the express delivery industry, the company wrote in a press release. “Today, the tremendous scale of digital sharing platforms and crowd-based access to already existing assets is redefining the concept of ‘sharing’ and reshaping the future of the logistics,” the release continued. “Sharing of warehousing space, transport capacities, operational data, and staffing are just some of the examples where the Sharing Economy could be effectively employed in logistics. “According to research, one in four trucks on US and EU roads are driving empty or typically only half-loaded. Digital platforms provide an instant snapshot of availability and the ability to access spare capacity in almost any truck, including smaller delivery vehicles or even privately owned cars on a day-to-day basis. DHL’s recently launched real-time freight brokerage platform Saloodo! uses the global network of smartphone users and real-time communications to reach a greater audience of shippers to take advantage of excess capacity. Multi-customer warehouses could help third-party logistics providers achieve greater economies of scale by consolidating fulfilment, demand and know-how between several customers within a single site. Taking the concept of space sharing from the hospitality sector as a role model, sharing excess warehouse capacity would bring great financial and productivity benefits. This opportunity for new business creation does not come without challenges – risk liability, transparency, insurance and workforce protection must all be considered. Also, the pace of technological innovation and social change often outpace regulatory frameworks. “Collaboration between companies and policy makers is necessary to ensure development happens in a positive and productive way,” added Heutger. “With logistics perfectly placed to enable and benefit from this trend, it will play a key role in shaping the sharing economy and rewriting the rules of value creation.”
The transport and storage sector is struggling to maintain any consistent levels of business confidence according to the quarterly Sensis Business Index, which takes the pulse of Australian small to medium businesses. The latest results show that confidence dropped by 11 points in the most recently studied quarter, taking the net balance to +24, 20 points below the national result. This is the only industry sector displaying a negative balance for profitability expectations. The survey found that support for the Federal Government among small and medium enterprises (SMEs) has fallen into negative territory and to the lowest level since Malcolm Turnbull took over as Prime Minister. The net balance fell four points this quarter (from +2 to -2). The score is calculated by comparing the number of SMEs that feel supported by the Federal Government’s policies (14 per cent) to the number that do not feel supported (16 per cent). Sensis CEO John Allan commented, “After Malcolm Turnbull took over as Prime Minister in 2015 we saw confidence in the Government rise, with businesses telling us they were optimistic about the change. “Since then the Government’s approval rating has fallen nine points and is 20 points lower than the highest score we saw under Tony Abbott, following the pro-business Federal budget of 2015. To find a lower score we need to go back to the March 2015 survey, which was taken after Tony Abbott had survived a leadership spill. “While perceptions of the economy remain strong, less than one in seven businesses have faith in the Government’s policies, with the biggest concerns being excessive bureaucracy and red tape, as well as there being too much of a focus on the interests of big business,” he said.
Yusen Logistics is deploying Manhattan Associates’ warehouse and distribution management solution ‘Manhattan SCALE’ to power its expanding global logistics services operation. The solution being implemented on the Microsoft Azure cloud platform is reportedly driving revenue, profitability and efficiency improvements for Yusen Logistics and its customers and will support Yusen Logistics’ ongoing business growth across the Europe, Middle East and Africa (EMEA), Asia-Pacific (APAC) and Americas regions. Yusen Logistics offers air, sea and road freight services and made the decision to standardise on a single warehouse management solution (WMS) to be deployed globally and provide consistency of service levels. “We chose Manhattan SCALE as our strategic fulfilment solution based on a number of factors including functionality, extensibility, ease and speed of implementation, global support capability and total cost of solution ownership,” said Tony Gudger, CIO, Yusen Logistics Europe. “Our long-term partnership with Manhattan, which stretches back 14 years and has involved multiple deployments of its various WMS technologies across the globe, also counted significantly in our selection process.” During the initial implementations in Southern Europe, Yusen Logistics reported zero issues relating to either Azure or Manhattan SCALE. The company plans to use Manhattan SCALE for the full gamut of local and global customer order fulfilment operations, spanning relatively small, single site distribution hubs to multi-site, multi-channel, high volume throughput supply networks. Henri Seroux, Senior Vice President – EMEA, Manhattan Associates, said, “Yusen Logistics’ customers across the globe are increasingly pressured to fulfil orders profitably across multiple sales channels and geographies while simultaneously maximising product availability and customer satisfaction. We are excited to provide the technology, services and support capabilities to drive the next phase of Yusen Logistics’ global success story.”