How operations and maintenance planning can improve port productivity

Ports are being challenged on many fronts. Globalisation has led to an increase in shipping and a corresponding increase in demand for port services. At the same time, competition between ports is intense and the nature of the market is changing.

TEU capacity and throughput remain important but now there are added complications, with operators of mega ships seeking suitably mega facilities, while other shipping clients demand flexibility in facilities, to cope with a mix of containerised and non-containerised cargo.

All of these factors have placed port and terminal operations under the spotlight. Considerations such as the time it takes to load or unload a ship, the type of assets a port owns, and the availability and reliability of this equipment have become critical to a port's competitive positioning.

In a bid to outdo others, operators around the world are discovering that the key to cost-effective port efficiency lies in driving value and productivity out of port assets.

The nature of assets

Typically, the assets owned by ports are costly. From forklifts to cranes, the assets are expensive to purchase and to maintain. The other fact about them is they are absolutely essential for revenue. Containers can't berth or be unloaded without the right equipment. But at the same time, no port can afford to tie up money or excess assets.

To avoid these pitfalls, it is important that ports have an integrated view of their operations and maintenance. The aim is to strike  a balance between the need to load and unload ships swiftly and efficiently, yet still have the ability to schedule essential maintenance.

Alignment with strategic objectives

The best and most accurate way of achieving this is by aligning operations and maintanance with the organisation's strategic objectives.

Begin by calculating anticipated TEUs for the year and consider how this number may grow. Then break the figures down to asset management objectives such as the number of berths and cranes that will be required to meet the expected throughput. 

If you expect to have the equipment in operation for 70 per cent of the time, that leaves a potential 30 per cent when no ships are coming in and when maintenance can be carried out.

Hopefully, this 30 per cent fits with the actual amount of time you require to conduct maintenance. If you need more time, that's when the juggling act between priorities -asset availability, reliability and cost -comes into question. Exactly how these needs are balanced will depend upon the priorities of each individual port operator.

It's all about balance

When trying to maximise productivity and contain costs, there's one other particularly helpful best practice. 

Analyse your assets in two distinct ways -in isolation and as a portfolio. It's important to know the costs, utilisation and productivity of a particular berth, for example, but it's equally essential to know the status of all the organisation's berths.

Their condition, capability and TCO not only points to capacity. It can also indicate risks, such as reliability, availability or exposure to upcoming replacement costs.

This latter risk is of particular relevance to companies that respond to the current increase in demand by suddenly investing in a variety of new assets.

An influx of new equipment ultimately creates an imbalance in the age of the asset fleet, which means maintenance demands will increase in sync and many of the assets will need to be replaced at a similar time.

This points to a significant cost burden in the near future. Good life cycle planning and clarity about priorities, especially in regard to operations, maintenance and costs, are essential in these circumstances. 

This is where asset management can make a considerable contribution towards business and profitability by reducing costs and increasing the productivity of assets.

The emergence of frameworks including PAS55 and ISO55000 have helped shift the thinking of how to manage assets from that of determining what cost to meet a level of service, to one of understanding the implications of the perforamnce, cost and risk trade-offs at various investment levels.

In many ways, the best examples of asset management involve balance. The balance between new and old equipment required to avoid risk. Balance between productive utilisation and maintenance, so that output is maximised and downtime minimised.

Balance between cost-cutting and investment, so that financial imperatives are met while keeping the fleet, and ultimately the company, competitive. 

Mirvac receives planning approval for Calibre at Eastern Creek

Mirvac Group, has received planning approvals from the Department of Planning and Environment for its most recent industrial estate, Calibre, at Eastern Creek. 

Set to raise the bar for contemporary industrial estates in Australia, Calibre will deliver state of the art facilities that blend flexible warehousing and office accomodation over 120,000 square meters of floor space.

Located at the heart of Sydney's Eastern Creek industrial precinct, at the nexus of the M4 and M7 motorways, the site is perfectly positioned as a distribution hub for the eastern seaboard, allowing seamless connections to major transport routes.

The planning approvals mark the start of work at the 22 hectare site, formally occupied by Australian Federal government quarantine. Demolition works begin in February 2016 and full construction jobs for the Western Sydney employment area and has the potential to employ 700 full time employees once operational.

According to Group Executive of Industrial at Mirvac, Stuart Penkilis, Calibre will offer significant benefits to a wide range of industrial users.

"As Australia's, and particularly Sydney's residential markets continue to put pressure on inner city property, sites such as Calibre offer a unique opportunity for large-scale users to consolidate operations and increase efficiencies.," Penkilis said.

"Calibre will set a new benchmark for industrial property, offering flexible office and warehouse facilities. We want to go above and beyond traditional industrial offerings, ensuring design excellence and leading sustainability are incorporated into all aspects of this high quality development, delivering long-term efficiency for our customers"

"In the era of online retail and same-day delivery, a major consideration for logistical companies is access. Calibre's proximity to major motorways with its own dedicated signalling intersection, will maximise speed of delivery which will ultimately deliver improving efficiency"

Mirvac worked closely with the Blacktown City Council and the Department of Planning and Environment to facilitate community feedback on the development application.

Calibre will have energy efficient lighting, rainwater harvesting, photovoltaic solar, cyclist and end-of-trip facilities creating savings for the tenants. The site adds to Mirvac's already extensive industrial portfolio, which spans 15 assets across Australia including: Nexus Industry Park and the Hoxton Distribution Park.

Logistics Industry Proposes Roundtable to Progress Heavy Vehicle Road Reform

The Australian Logistics Council (ALC) has thrown its weight behind a proposal to establish a roundtable involving industry and government to progress the issue of heavy vehicle road reform. 

In a letter to Paul Fletcher, Minister for Major Projects, Territories and Local Government, ALC has welcomed a wide ranging public debate to ensure road funding reform proposals improve supply chain efficiency against the backdrop of an increasing freight task.

According to ALC Managing Director Michael Kilgariff, "ALC supports the need for reform in this area to improve supply chain efficiency and we welcome the Government's commitment to progress this important reform."

"ALC also welcomes Paul Fletcher highlighting this issue in a recent Ministerial Statement on road pricing where he reaffirmed the Government's commitment to accelerate work with states and territories on heavy vehicle road reform."

"Minister Fletcher correctly argued that our current system for funding roads is under growing pressure and that a new approach is required."

"ALC has also developed a set of principles to progress the debate [attached to the letter] which could be used as a basis for further discussions within the proposed roundtable."

In the letter, ALC reiterates its call for the inclusion of senior Treasury officials in the reform process and has encouraged the Government to include Treasury representatives in the roundtable.

"ALC would also like the roundtable to address the issue of mandatory telematics in heavy vehicles, as this technology will need to play an integral role in any road funding reform.

"As part of this campaign, earlier this month I wrote to all federal, state and territory transport ministers to encourage them to put in place the regulatory and administrative steps needed to advance the mandatory use of telematics in heavy vehicles to improve safety and compliance outcomes." 

Toyota Material Handling Lifts Market Share To Record Heights

Toyota Material Handling Australia (TMHA) has secured its highest market share on record to take the number one position in the Australian forklift market for the seventh consecutive year.

TMHA delivered over 4,500 forklifts in 2015, up 2.3 per cent on the previous year, resulting in its highest ever market share of 37.5 per cent.

The official Australian Industrial Truck Association (AITA) industry sales results show a total of 12,144 forklifts sold in 2015, an 11.6 per cent drop on the previous year.

For the 29th year in a row TMHA remains the number one manufacturer of internal combustion engine powered counter-balance forklifts with a dominant market share of 42.2 per cent.

TMHA claimed number one position for forklift sales in New South Wales, Victoria, Queensland, Western Australia and Tasmania.

In the battery-electric forklift market TMHA achieved a  34.3 per cent market share. Internal combustion engine powered forklifts accounted for 41.3 per cent of the market, with battery-electric powered units now making 58.7 per cent of the total.

TMHA executive vice president and COO Steve Takacs said the results show the resilience of the Toyota brand in a declining market.

“As always we are very proud of TMHA’s growth in market share, made even more exceptional in 2015 given the overall decline in numbers nationally.

“We have also increased on volume over 2014, selling over 100 more units than at the same time last year,” Mr Takacs said.

“As the industry moves towards a more environmentally sustainable outlook, I am confident that the trend towards battery-electric units will become a much stronger force in the industry.

“We will release even more battery-powered options in 2016 and we look forward to further solidifying our place as number one,” Mr Takacs said. 

Ideagen’s Q-Pulse plays pivotal role in Terex Trucks’ achieving industry first accreditation to ISO 9001:2015

Ideagen’s market leading quality and safety management software, Q-Pulse, has helped Terex Trucks become the first organisation in its industry – and one of the first globally – to achieve accreditation to the latest ISO 9001 quality standard.

Terex Trucks, a manufacturer of rigid and articulated trucks, worked closely with software company Ideagen for several years to adapt its Q-Pulse quality management product, helping Terex Trucks achieve ISO 9001:2015 certification.

Through Q-Pulse, Terex Trucks can transfer live data to manage risk more effectively, making the process more efficient and dynamic as errors can be picked up and fixed in a timely manner.

The new quality management system took Terex Trucks four years to successfully implement, which involved rewriting the company’s management strategy to achieve certification.

Martin Dolan, Terex Trucks’ Quality Manager who oversaw the entire project, said: “ISO 9001 is the world’s most popular management system standard. Being one of the first companies, and the first in our industry with Lloyd’s Register Quality Assurance Ltd (LRQA) to attain certification, is testament to the extensive investment we’ve made in quality improvements, people and facilities.

“Our aim was to improve product, process and service quality, increase customer satisfaction levels and improve productivity, therefore reducing costs. Gaining this certification will also provide us with a competitive advantage in situations or industries where it is not a contractual obligation or expectation. Our performance statistics confirm that we have successfully delivered on this aim and we will continue to build on this in the future through the deployment of our quality management system.”

ISO 9001:2015 is a certified quality management system for organisations looking to achieve consistency in the development and provision of their products and services to customers and stakeholders. Approved by the LRQA, the latest edition of ISO’s flagship quality standard has been revised to meet the requirements of today’s modern dynamic and globally connected world.

Martin continued: “Successfully transitioning to the new ISO 9001:2015 standard is a huge achievement for all involved and will help to position Terex Trucks as leaders in our field for quality.

“We are extremely proud of the trucks we produce. The new quality management system has changed the ethos of the whole business with all employees now having a better understanding of our customers’ requirements. It has been great for staff morale and is helping us develop as a world class business.”

David Hornsby, Ideagen’s Chief Executive Officer, said: “We take immense pride in helping our customers on their way to operational excellence, providing them with outstanding expertise and software products such as Q-Pulse.

“Over the years we have built up an outstanding working relationship with Terex Trucks and, in doing so, have helped them become the first in their industry to achieve certification to the ISO 9001:2015 quality standard. This is an outstanding achievement, not just for Terex Trucks, but for Ideagen and our Q-Pulse software product.”

David added: “It is extremely pleasing to be working with such an established organisation and it gives us great satisfaction that both our expertise and our software has helped them achieve this fantastic milestone.”

Terex Trucks is also expected to achieve certification to ISO 14001:2015 this year. The organisation is currently working towards certification to the standard, which will allow it to manage environmental responsibilities in a systematic manner.

Dorner Announces Acquisition of FlexMove

Dorner Holding Corp., the parent company of Dorner Mfg., has announced the acquisition of Penang, Malaysia-based FlexMove, a leading manufacturer of flexible chain conveyors for food, beverage, automotive, electronic and other industries.

Dorner Mfg. is an industry leader in the design, applications, manufacturing and integration of precision industrial and sanitary conveyor systems. 

The addition of FlexMove expands Dorner Holding Corp.´s geographic coverage and complements existing products and capabilities in the Dorner Mfg. line.

FlexMove anticipates the acquisition by Dorner will provide customers with a comprehensive conveyor platform offering to accommodate virtually any material handling application.

Dorner Mfg. is a globally recognized brand in low profile belt conveyors, and we´re looking forward to joining the Dorner Holding family.

Dorner Mfg. expects the integration with FlexMove to be beneficial, particularly to customers in European and Asian markets.

"We´re excited to have a company join us whose views on product quality and delivery are in line with Dorner," said Terry Schadeberg, president and CEO, Dorner Mfg.

"FlexMove´s capabilities will allow us to serve our international customer base with greater efficiency."

The acquisition will allow Dorner Mfg. to continue its strategy of international expansion.  Earlier this year, the company appointed Dan Nasato to the position of Vice President of International Development, and Edmundo De la Rosa as International Sales Manager – Latin America.

Emco Wheaton plays key role in first U.S. crude oil shipment in 40 years

Emco Wheaton has played a pivotal role in the transfer of the first shipment of U.S. crude oil for export in 40 years, after the Theo T tanker set sail from the Port of Corpus Christi bound for Europe.  

The Greek oil tanker was loaded on New Year's Eve by NuStar Energy LP at its North Beach Terminal at Port Campus Christi in Texas using three Emco Wheaton Marine Loading Arms.

To cost effectively and safely supply crude oil to the global market, Nustar Energy LP made significant investments in its Corpus Christi terminal operations in 2014 with the purchase of new equipment. 

The addition of a state-of-the-art metering system, vapor control system, and a dock structure with three Marine Loading Arms from Emco Wheaton were integral in Nustar’s ability to load export-size cargoes at a rate of 30,000 barrels per hour.

Emco Wheaton VP/GM Michael O’Neil said: “It’s a great achievement for Emco Wheaton marine loading arms (MLA) to play such an important role in U.S. history and we are proud to be a part. The company has an enviable track record of providing MLAs to our clients that enhance the ease, safety and efficiency of their dock operations while at the same time meeting the highest standards of the oil & gas industry.”

Emco Wheaton designs and manufactures a wide range of highly engineered MLAs to load and unload almost any liquid and compressed gas product from river barges, ships and ocean going super tankers. The complete MLA package for NuStar has been designed and manufactured at Emco Wheaton’s custom built plant in Kirchhain, Germany, the company’s MLA engineering and technology hub.

Emco Wheaton is part of Gardner Denver Energy, a team of trusted brands – Gardner Denver Pumps, Nash and Garo – who have experience in delivering solutions across the entire energy spectrum – upstream, midstream, downstream.

The brands share technology and research across divisions; investing in the innovation that drives performance and value; and using the energy of our people to help produce the energy our world needs.  By working across our companies and with our customers, together we help create operations that are smarter, safer, and more sustainable.


Western Downs Regional Council protects thriving local industry with new Dalby Heavy Vehicle wash down facility

The opening of the heavy vehicle wash down facility at Dalby yesterday marks a significant achievement for the Council in meeting the objectives of its Regional Biosecurity control program through the completion in recent years of wash-down facilities at Wandoan, Chinchilla. 

The control program will minimise and control the spread of weed seed, in particular Parthenium throughout the region. This in turn will provide the long term protection of the region’s good quality agricultural land, and a reduction of livestock manures and effluent spillage on the regions road networks.

Wiley Business Operations Manager for Regional Queensland, Michael Matthewson said “the Western Downs Regional Council should be commended for taking the initiative to provide a facility that will help control the spread of a serious threat to the local land and the livelihoods of the people who live and work in the region.

Council should also be congratulated its commitment to delivering successful projects through stakeholder engagement and supporting the local subcontractors and suppliers wherever possible.”

Wiley were engaged to design and construct the heavy vehicle wash-down facility to service the agricultural sector as well as coal seam gas (CSG) and mining vehicles. The wash-down facility includes truck and 4WD wash bays, wash-down effluent wastewater collection and screening, effluent wastewater treatment and sludge management.

The facility is co-located on the existing Dalby saleyard site and constructed as an important feature in the overall redevelopment of the saleyard facilities. The wash-down system is designed to handle a peak use on Tuesdays due to the weekly cattle sale each Wednesday.

Wiley has enjoyed working in partnership with Western Downs Regional Council over recent years including the redevelopment of the Dalby Saleyards and the Chinchilla wash down facility.

Western Downs Regional Council valued Wiley’s collaborative approach, working closely with all key stakeholders to ensure the facility served the requirements of end-users.

Komatsu on board with red bull racing

Komatsu Australia will partner with Triple Eight Race Engineering for the ninth consecutive year in 2016. The team will add an additional car to its roster as it gears up for the 2016 V8 Supercars championship.

Komatsu has been a partner of Triple Eight, now in its fourth year competing under the Red Bull Racing Australia (RBRA) banner, since 2008, in which time the team has achieved six Driver Championships and seven Team Championships.

Growing the drivers’ ranks to three, Shane Van Gisbergen joins Red Bull Racing Australia with the #97 VF Commodore. A race winner at the 2015 Gold Coast 600 and Sydney 500, Van Gisbergen is a New Zealander with a history of motorsport achievement and recently revealed the Red Bull squad’s 2016 livery in a haze of coloured tyre smoke.

He joins the fold with six-time champion Jamie Whincup and V8 veteran Craig Lowndes who celebrated 100 career wins, his sixth Bathurst win and outright second place in 2015.

Komatsu Australia Managing Director and CEO Sean Taylor said the partnership reflected Komatsu’s drive to remain at the cutting edge of its industry.

“High performance machines, tough conditions and constant improvement: Komatsu and V8 Supercars have a lot in common. That is why we continue to be a partner of the sport’s leading team.

“Nobody wins more races, achieves more at Bathurst or takes more championships than Triple Eight and we are proud and excited to be a part of the race to the 2016 Championship. Our team strives to help our customers win every day, just like the RBRA team strives to get drivers on the podium,” he said.

“The Triple Eight team aligns closely with our brand mantra of People Powered Technology as we have both succeeded through employing the best people, using superior machines and utilising leading edge technology to achieve success.”

Triple Eight Race Engineering Team owner Roland Dane said Komatsu’s partnership was key to the team’s continual success on and off the track.

“Komatsu’s role in our program goes beyond stickers and patches on cars and race suits. It is a partnership of mutual support and mutual benefit. Technical expertise and knowledge is shared, apprentices are mentored and lessons are learned.

“In 2016 we have a formidable crew, Australia’s leading businesses as partners and three brilliant drivers, all of whom finished the 2015 Drivers Championship inside the top five. My motto is to assume nothing, but we are in a great position to tackle the challenges of 2016,” he said.

The 2016 V8 Supercars Championship gets underway at the Clipsal 500 in Adelaide on March 3 to 6.

The Manitowoc Company appoints new President and CEO of Manitowoc Cranes

The Manitowoc Company announced on December 28, 2015 that it has named Barry L. Pennypacker as president and chief executive officer of Manitowoc Cranes.

Mr. Pennypacker, who assumes his responsibilities immediately, will report to current interim chairman and chief executive officer of The Manitowoc Company, Inc., Kenneth W. Krueger. Larry J. Weyers, the current president of Manitowoc Cranes, will continue with the company as executive vice president of Manitowoc Cranes.

“Barry brings a fresh perspective to the Manitowoc Cranes business. His results-focused leadership style has led the transformation of several complex businesses through continuous process improvements, which delivered significant operational and financial performance improvements and increased shareholder value.

Furthermore, Barry’s deep industrial expertise, coupled with the successful execution of numerous lean initiatives throughout his career, makes him an excellent candidate to build on Manitowoc Crane’s leading market positions to return the business to growth and improved profitability,” stated Krueger.

Upon the execution of the previously announced spin of Manitowoc Foodservice, The Manitowoc Company, Inc. will change its name to Manitowoc Cranes, Inc. Mr. Pennypacker will then serve as president and chief executive officer of Manitowoc Cranes, Inc. and Mr. Krueger will serve as Chairman of the Board of Manitowoc Cranes, Inc.

Most recently, Mr. Pennypacker served as founder, president, and chief executive officer of Quantum Lean LLC, a privately held manufacturer and supplier of precision components.

Prior to that, he was president and chief executive officer, as well as a director, of Gardner Denver Inc., a manufacturer and marketer of engineered industrial machinery and related parts and services, from 2008 until 2012. During his tenure at Gardner Denver, he created a high-performance culture that delivered significant value for customers, employees, and shareholders.

Prior to joining Gardner Denver, Mr. Pennypacker served in positions of increasing responsibility at Westinghouse Air Brake Technologies Corporation, a worldwide provider of technology-based equipment and services for the rail industry with his last position being Vice President-Group Executive.

He has also served in a number of senior management positions and operational roles during his time at The Stanley Works, a worldwide producer of tools and security products, and Danaher Corporation, a manufacturer and marketer of professional, medical, industrial, and commercial products and services.

Mr. Pennypacker earned a Bachelor of Science degree in operations management from Pennsylvania State University and an M.B.A. in operations research from St. Joseph’s University. 

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