Blame game over Port Botany congestion

Stevedore Patrick and Sydney Ports Corporation have both distanced themselves from the severe congestion at the Port Botany terminal that caused angst among truck operators.

Questions over their incompetency to manage traffic were prompted by a massive truck queue that stretched for more than four kilometres at the terminal Tuesday morning.

The Australian Trucking Association (ATA) argued Patrick failed to provide operators with timely notice to mitigate confusion, causing hours of delay in processing times.

Faced with intense complaints, Sydney Ports said the congestion was caused by Patrick’s failure to abide by the mutually agreed communication protocols.

In a statement Sydney Ports said it “has developed existing action plans agreed with both stevedores on a communication procedure to notify industry on extensive delays at the port terminals.

“The procedure specifies that communication to industry will take place by the stevedores in the event of delays exceeding two hours.”

Despite cancelling around 50 slots, Patrick reportedly defended its action, saying it had improved its responsiveness to congestion compare to previous years.

Also brought up was the effectiveness of the port road taskforce, as part of the NSW Government’s supply chain reform initiative.

Led by Sydney Ports, the first phase of the reform is the industry-led improvement in port efficiency with the next phase involving government intervention to tackle issues not resolved by industry.

While devising long-term solutions is important, the industry argues, there should be an immediate short-term solution to avoid further traffic jam during the critical Christmas season.

Schenker-Siemens alliance gets stronger

Schenker Australia and Siemens have extended their partnership, which will see Schenker taking on all Siemens Australia and New Zealand import and export activities.

Schenker has been providing logistical services for Siemens medical products and for large projects since the last 90s, and under the new contract its role will now encompass Siemens’ freight forwarding operations for import and export activities across Australia and New Zealand, including transport and distribution services throughout both countries.

Siemens chief financial officer Jeff Connolly said of the tenders received, Schenker was best placed to deliver a consolidated, time- and cost-effective international and domestic service.

“DB Schenker provides the optimal solution for Siemens freight services, with the ability to deliver some very challenging cargo, from an extremely large power-generation turbine, to delicate medical devices within very tight timeframes and cost effectively,” Mr Connolly said.

“Priority medical products have always been deliverable from Europe within just two days, but now this exceptional turnaround rate can be provided to customers for all priority products across Siemens three sectors – industry, energy and healthcare.”

He added DB Schenker also provided its customers with complete visibility throughout freight operations, with ready access to the online track-and-trace system and streamlined order and invoicing processes.

Schenker Australia CEO Ron Koehler said the new contract was the result of significant improvements in its supply chain over the last two years and a responsive approach to reducing the environmental impact if its freight services.

“We are proud to have been awarded the Siemens contract for import and export services across Australia and New Zealand, and will transfer solutions originally developed to meet the demands in the healthcare business, to strengthen and develop Siemens’ supply chain in other sectors,” Mr Koehler said.

He said in a bid to cut carbon emissions stemming from freight services, the company optimised the combination of transport modes and cut the use of paper in freight documentation and invoicing.

The two companies are developing an electronic interface, which will enable timely receipt and issuing of invoicing, with all related documents to be processed electronically.

Express freighters flock to rail

FedEx Express.

Express freighters are increasingly choosing rail over air transport.

The long-buried potential of rail is at last to be realised with the help of the global express delivery industry, a market analyst has argued.

Datamonitor’s transport logistics analyst Sraavani Rao said large swings in oil prices, coupled with the economic downturn, were leading to a gradual shift in customer demand away from express and parcel delivery services via air to rail and road.

She argued key international players such as DHL, TNT, UPS and FedEx were seeing the rail network as a competitive alternative with service capabilities as well as economic and environmental benefits.

Express operators, especially in the European market, are increasing the use of the rail sector, already offering services through rail to serve same-day and next-day delivery requirements.

US player FedEx is also planning to team up with the French rail network in a bid to provide time-definite rail deliveries and help cut reliance on air networks for domestic and international deliveries within the EU.

This is also expected to streamline critical overnight express deliveries, as rising noise concerns at the airports continue to put more pressure on operators, according to Ms Rao.

She pointed out rail seemed to be a more viable option than road as congestion charges in some capital cities would make road transport on certain occasions costlier than rail.

“Additionally, rail transport makes environmental sense, as the emission levels are significantly lower than those of road,” she said.

She said the shift favouring rail transport over road and air would become more salient in the medium to long term.

“An alternative mode of transport that offers great potential is rail, as most companies come to realise the potential of rail express delivery.

“This is expected to increase the share of rail in the modal mix of transport in the years to come and also provide opportunities for express companies to both compete effectively and satisfy shippers’ requirements,” Ms Rao said.

Formidable new voice for the road transport industry

Raod train.

A new voice for the trucking industry. 

(Image courtesy of the ARTA)

A membership amalgamation has heralded a new era for the trucking industry. 

Two national trucking organisations, NatRoad and the Australian Road Train Association (ARTA), have joined forces to set up what they claim is Australia’s foremost national heavy vehicle membership-driven representative body.

Under the agreement, their memberships will be combined under NatRoad Ltd, to be known as NatRoad, The National Road Transport Operators Association, Incorporating the Australian Road Train Association.

The new partnership is expected to create a more salient industry voice to advocate the interests of the industry to Australia’s policy-makers, and also to provide a widened range of services including assistance regarding fatigue management; occupational health and safety and risk management; industrial relations advice and representation; 24 hour / 7 day-a-week helpline; member workshops; and preferred supplier benefits.

“The partnership means coast-to-coast representation for heavy vehicle operators regardless of their type of operation, from coastal-based rigid vehicle owner-operators through to major fleet remote area road train operators,” NatRoad said.

NatRoad president Rob McIntosh said the amalgamation was an upshot of a long-standing relationship between the two grass root organisations.

“In reality, this move simply formalises what has long been a natural fit between the two organisations, whilst removing the duplication of policy development and membership services,” Mr McIntosh said.

NatRoad will shortly be writing to each financial member of the ARTA providing details of the change.

Winners of the forklift championship

Forklift Championships.

The winners of the first heat of the National Forklift Championships have been announced.

The Championships, hosted by the Supply Chain and Logistics Association of Australia (SCLAA), was designed to recognise the important of forklift operation and operators in the supply chain and logistics industry.

The focus of the competition is on accurate and safe driving skills and knowledge, not on speed. Competitors start with a score of 0 and receive points for any errors made, with the participant with the lowest number of points becoming the winner.

All participants will receive a certificate of participation, with the winner(s) receiving a $3,000 worth of prizes as well as a trophy.

The winners of Heat 1 are:


1st    Craig Rickards, Woolworths

2nd   Jack Epifaniou, CSL Bioplasma

3rd   Shane Read, McCain Foods Australia


Male Winner: Jason Fitzgerald, Sealy Australia

Female Winner: Katie Burrow, DHL

New South Wales

Male Winner: Michael Eden, Toll Refrigerated

Female Winner: Pamela Cifuentes, Simons Warehousing

Entries for the next rounds are open now.

Heat 2 – Counterbalanced forklift


20 January 2009

Ausfork Training Centre

193 Maidstone Street


Ph (03) 9731 0456


30 January 2009

AIMM Industrial Training

Unit 26, 315 Archerfield Road


Ph (07) 3375 6699


27 January 2009

Schaefer Storage Systems

14 Church Road


Ph (02) 9487 8794 (SCLAA)

Heat 3 – Reach truck forklift


24 February 2009

Ausfork Training Centre

193 Maidstone Street


Ph (03) 9731 0456


3 March 2009

AIMM Industrial Training

Unit 26, 315 Archerfield Road


Ph (07) 3375 6699


10 March 2009

Schaefer Storage Systems

14 Church Road


Ph (02) 9487 8794 (SCLAA)

Register to be a part of the National Forklift Championships simply by emailing: and ask for a registration form or call 02 9487 8794 SCLAA NSW.

The competition is supported by Schaefer Systems International and Hyster forklifts.


New technology to maximise road safety

Driver safety technology provider Minorplanet has launched a new system designed to help trucking companies ensure safe operations.

The company’s vehicle management information (VMI) system can measure the forces applied to a vehicle in three dimensions with its tri-axis accelerometer.

The system also integrates an incident buffer, which returns second-by-second data when triggered, helping operators and crash investigators determine the possible causes of an incident.

Minorplanet CEO Steve Green said the new technology would provide companies with an insight into the behaviour of their drivers, enabling them to maximise road safety.

 “Having clear records as a result of Minorplanet’s VMI system, drivers and operators will be better protected from legal entanglements as well as enabling compliance with recent changes in road and transport legislation,” Mr Green said.

The company said the buffer not only stores comprehensive information including vehicle location, speed, temperature and forces applied to the vehicle, but also detects erratic driving such as rapid acceleration, hard cornering and heavy braking.

Mr Green added the system could help businesses reduce fleet running costs and increase econ-efficiencies. 

Pacific Blue eyes bigger market in PNG

Virgin Blue’s international offshoot Pacific Blue has launched its first service between Brisbane and Port Moresby, seeking a bigger share of the growing PNG market.

The airline will operate four direct return flights a week between Brisbane and PNG, in future under code-share with Airlines PNG, using its Boeing 747-800 fleet.

The company’s chief executive Brett Godfrey said Pacific Blue was already successfully servicing five Pacific Island destinations, and launching services to PNG was a logical decision and a natural fit for the airline.

“There has been a strong economic and cultural relationship between Australia and PNG for years and the launch of our services to and from Papua New Guinea can only strengthen the connection between our two countries.

“We have no doubt the additional schedule choices Pacific Blue offers…will appeal to the leisure and VFR markets as well as to business travellers who make up 35 per cent of all travellers ex-Australia,” Mr Godfrey said.

Pacific Blue’s entry in to the market comes under a strategic partnership with PNG-based Airlines PNG

Airlines PNG chief executive John Fitzgerald said since late 2005, his company had already brought significant competition to international routes between Papua New Guinea and Australia.

“We’re pleased that the commencement of Pacific Blue operations will introduce a strong and successful regional competitor onto the Brisbane route,” Mr Fitzgerald said.

“We are awaiting approval from PNG’s competition regulator, following which I am sure that we can look forward to a long and productive code-share partnership with Pacific Blue – a partnership that will see sustainable competition produce benefits for travellers between the two countries with greater choice in terms of product, schedules and air fares.”

Meanwhile, the Papua New Guinean Government is reportedly looking at luring another Australian airline, Sky Air World, in a bid to lift competition in the country’s aviation industry. Sky Air World provides services to Solomon Islands and Fiji.

TPG makes a $1 billion move on Asciano

Private equity consortium TPG has reportedly made a $1 billion share offer to Asciano, after its initial takeover proposal was thwarted three months ago.

According to The Australian Financial Review, TPG founder David Bonderman has recently flown from the US to Melbourne to put another proposal to buy more than $1 billion in Asciano shares.

The Texas-based consortium of TPG Capital and Global Infrastructure Partners (GIP) initially approached Asciano this August with a $2.9 billion “non-binding” offer, but the company rebuffed the proposal, saying the bid underestimated its true value.

At the company’s annual general meeting held two weeks ago, Asciano chairman Tim Poole had said: “The board absolutely believes that the current market price of Asciano securities in no way reflects the underlying value of Asciano’s businesses, in the same way that the indicative offer from TPG and GIP failed to recognise that true value.”

Asciano’s shares are now languishing at around $2.15, less than half of the takeover offer of $4.40 per security.

The paper said the cash-strapped company was likely to reject the new offer again as it intended to push through with its plans to raise $ 1 billion by asset sales or monetising.

It attempted to ease its debt burden through the underwritten security purchase plan in September, but secured only 10 per cent of the initial target.

Asciano, which owns some of Australia’s major transport assets including Pacific National, is reported to have a market value of $1.5 billion, while its debt amounts to almost $4.5 billion.

QR to spend its way to profit

National transport and logistics company QR has posted revenue of $3.5 billion in the 2007-08 fiscal year, up 11 per cent on the previous year, but said the result fell short of expectations.

It recorded net profit after tax of $194.5 million, a six per cent increase, carrying a record 245 million tonnes of freight.

QR chairman John Prescott said while the result was sound, returns were still inadequate to ensure the company’s commercial sustainability.

“Revenue was adversely affected by reduced production at mines in central Queensland after major flooding in the final six months of the financial year,” Mr Prescott said.

In a bid to lift its performance, the company spent a record $1.7 billion as part of its capital investment program, with a further $8 billion expected to be injected over the next five years.

“At a time of unprecedented levels of capital spending, QR is committed to improving its performance to achieve satisfactory returns for the people of Queensland,” he said.

Chief executive Lance Hockridge said the record spending in the year reflected its focus on safety improvements, commercial capability and growth opportunities.

“Strong improvements in these areas will genuinely position QR for long-term commercial success in a buoyant transport and logistics market, which is undergoing major transformation.”

The company carried a record 245 million tonnes of freight, while delivering $900 million of new infrastructure for the passenger and freight networks, a 300 per cent increase over two year.

“We are well positioned any very focussed to meet the challenges posed by the dramatic population growth in south-east Queensland and to seize the opportunities arising from the resources boom in Queensland and Western Australia, as well as the strong growth of the general freight market,” Mr Hockridge said.

He said QR’s restructure into freight, network, passenger and services this year was enhancing its customer focus, with new management appointments providing the desired combination of commercial capability and rail industry experience.

“We are reshaping and rebuilding the ‘new QR’ to fulfil our vision of becoming the leading transport and logistics company in the country,” he said.

Glebe Island to end vehicle trade services in November

Car imports into Sydney Harbour will officially end on November 16, with Port Kembla set to take over NSW’s vehicle trade.

Port Kembla Port Corporation has confirmed in a message to the car industry it had reached to an agreement with Australian Amalgamated Terminals, operator of the port’s new import facilities, to relocate all trade activities to Port Kembla from November 17.

Sydney Harbour’s Glebe Island and White Bay precinct, which has been responsible for all of the state’s ro-ro and vehicle trade, will no longer discharge vehicles after November 16.

Port Kembla will take over the trade with two dedicated berths, with some of the remaining operators already moving to the port.  

The port’s 105 berth is being extended by 80 metres, enabling the port to provide berths totalling 800 metres in length to accommodate up to three car-carrying vessels simultaneously.

Ports Minister Joe Tripodi said the new infrastructure would minimise congestion.

“The extension reduces the risk of vessel queuing at Port Kembla as we beef up its capacity to handle car imports,” Mr Tripodi said.

“About 30-40 per cent of cars coming to the port will be processed on site. Car importers will be able to send cars directly from the port to their final point of sale rather than having to first send them to a separate processing facility.”

It is estimated around 300,000 vehicles are shipped into NSW each year.

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