DP World fee surge “unfair and discriminatory” say NSW trucking operators

Road Freight New South Wales (RFNSW) has called on the ACCC to investigate the new infrastructure surcharge to be introduced on 17 April 2017 by DP World at its Sydney terminal.
The surcharge will be $21.16 per container and will apply to all full containers received or delivered via road or rail at the Sydney Terminal.
Simon O’Hara, General Manager, RFNSW called on the ACCC’s Rod Sims in a letter to investigate whether DPW Australia misused its substantial market power under s46 of the Competition and Consumer ACT (CCA), engaged in unconscionable conduct under ss 20 or 21 of the Australian Consumer Law (ACL), or imposed the infrastructure surcharge in an unfair and discriminatory manner, including under the new small business unfair contract terms law.
“Our members are extremely concerned about DP World’s unilateral decision, which was announced without any consultation with industry,” said O’Hara. “There has been no discussion or input from carriers, just a one-page letter warning carriers that their ongoing access to the Sydney terminal is contingent on them paying up.
“DPWA has failed to justify why it’s imposing the extra levy on carriers, spinning it as an ‘infrastructure surcharge’ We have no understanding as to how they reached this decision, and given they have not consulted with industry, we still do not understand their rationale,” he said.
O’Hara said that the decision was anti-competitive, discriminatory and unfair.
“Carriers will be charged through the One-Stop Vehicle Booking System and RFNSW is calling on DP World to outline specific billing and payment procedures for carriers and how they compare with rail operators at the port. We are concerned that carriers, yet again, will be disadvantaged,” said O’Hara.
“The fact that the Infrastructure Surcharge applies only to laden containers arriving by road and rail is discriminatory and to the detriment of road and rail companies that do not have the ability to change stevedores in response to the price increases.
“That is, the infrastructure surcharge will not apply to the repositioning of empty containers by shipping lines, which contributes substantially to the total container movements conducted by DPWA and the use of the various capital equipment sought to be covered by the Infrastructure Surcharge,” he said.
“DP World demands payment in seven days, and ongoing access to their terminals is conditional on paying on time. Yet, transport operators will only be able to recoup the costs based on their customers’ terms [in] 30 days, or in many cases longer.”
O’Hara said that RFNSW would also take up the surcharge with the Australian Small Business and Family Enterprise Ombudsman, Kate Carnell AO.
 

Road Freight NSW aligns with steel expert

Road Freight NSW (RFNSW) has strengthened its membership with the announcement of a new partnership with BlueScope Steel (BlueScope).
“BlueScope is one of Australia’s largest manufacturers, and our new partnerships enables RFNSW to work with them and all of our members on key transport matters affecting New South Wales,” said Simon O’Hara, General Manager, RFNSW. “It gives legitimacy, credibility and industry partnership for RFNSW.”
According to BlueScope, the partnership with RFNSW enables the business to be part of a  “vibrant logistics industry organisation” and offers the opportunity to share best practices with the growing road freight industry.
“BlueScope are committed to consistently improving their performance and their safety on the road, and the road freight industry can learn valuable insights from this leading organisation,” O’Hara said.
“BlueScope moves 4.2 million tonnes by road, and 2.4 million tonnes in NSW – and we are delighted they have decided to join RFNSW as one of our partners.
“This collaboration will ensure that a stronger voice is heard from operators across the country.”

CEVA Logistics secures new facility in Eastern Creek, NSW

Supply chain management company CEVA Logistics has signed a four-year lease at the Calibre industrial development – owned by property group Mirvac – at Eastern Creek, New South Wales.
Construction of the building CEVA will occupy has yet to complete, though it will consist of approximately 18,000sqm of warehouse and 1,000 metres of office space, allowing CEVA to consolidate three existing warehouse operations from different locations into one.
“As a world leading supply chain management company, CEVA will benefit from Calibre’s unmatched transport links. At the nexus of the M4 and M7 motorways, the site has a dedicated multi-directional signalised intersection connecting to major transport links,” said Stuart Penklis, Mirvac’s Group Executive, Industrial.
“The advanced specification of the facility sets a new standard of quality and amenity for industrial estates in Australia, whilst delivering long-term efficiency and flexibility for CEVA,” he added.Mirvac Calibre East Ck small
Penklis said that the state government investment in infrastructure is drawing large-scale users to Western Sydney.
“The upgrade of the M5 Motorway and WestConnex has stimulated demand as it will improve access and connections between Western Sydney, Port Botany and Sydney CBD. Calibre is ideally placed adjacent to the motorway, catering for logistics and manufacturing occupiers looking to benefit from this investment in infrastructure.”
Carlos Velez Rodriguez, Managing Director Australia and New Zealand, CEVA, said, “We’re very pleased to have secured the first facility at this new premium logistics hub. Calibre raises the bar for contemporary industrial estates, and the quality and design make it an exceptional opportunity to have secured.
“This transaction allows us to consolidate from different locations across the state, creating a huge value proposition and bottom line efficiencies. Against the back drop of high demand for industrial sites in Sydney’s west, Calibre’s prime location makes it an unmatched opportunity.”

NSW Trains CEO steps down

Rob Mason, Chief Executive of NSW Trains, will step down from the organisation after a long career in the rail sector, including the last three-and-a-half years as the first CEO of NSW Trains.
Following an 18-year career in senior roles in the London Underground, Mason joined RailCorp in 2005 as Group General Manager of Train Services, and was CEO from 2008 to 2013.
Secretary of Transport for NSW, Tim Reardon, thanked Mason for serving the people of NSW for more than a decade. “Over the last three-and-a-half years, Rob has successfully established NSW Trains as a customer-focused organisation, delivering improvements to customer service, increasing patronage on intercity services and reconnecting the organisation with the regional and rural communities it serves,” he said. “Rob has made a significant contribution to transport in this state and I wish him well for the future.”
Reardon said that Sydney Trains CEO Howard Collins has been asked to take on the additional role of Acting Chief Executive of NSW Trains to help retain the successful structure and separate operations of Sydney Trains and NSW TrainLink. The announcement today will simply change the executive reporting lines to focus accountability for delivering the NSW Government’s More Train, More Services program over the short term, he explained.
“More than $1.5 billion will be invested over the next three years on the More Trains, More Services program, which will boost capacity through hundreds of extra services, better infrastructure and new trains,” Reardon added. “With such incredible customer growth, more than ever, the successful delivery of the Government’s massive investment to improve the rail network, which includes a new timetable to be implemented later this year, will require Sydney Trains and NSW Trains to continue to work together in a coordinated way.”
Peter Allaway, the current Executive Director of Customer Service Delivery, will be appointed as Chief Operating Officer and take responsibility for day-to-day management of NSW Trains, reporting directly to Collins.

New NSW Roads, Freight and Maritime Minister named

Newly appointed New South Wales Premier Gladys Berejiklian has named Melinda Pavey as the state’s new Roads, Maritime and Freight Minister.
Pavey will replace outgoing Transport Minister Duncan Gay as part of a new-look NSW Cabinet.
The National Heavy Vehicle Regulator (NHVR) welcomed the appointment of Pavey and thanked Gay, who held the position since 2014 and was one of the original shareholding ministers during the formative years of the NHVR.
“On behalf of the NHVR Board, our Chief Executive and NHVR staff, I congratulate Melinda and confirm our commitment to working with her to reduce red tape for the heavy vehicle industry, deliver consistency across borders and boost road safety for all road users,” commented NHVR Chair, Bruce Baird, adding that he looks forward to working with Pavey to deliver ongoing reform to heavy vehicle safety and productivity.
“Duncan had a passion for the heavy vehicle industry and that showed with his support for a national regulator and the measures he delivered to improve freight and heavy vehicle transport across NSW.
“Under Duncan’s leadership, RMS and the NHVR have worked closely together to give the heavy vehicle industry certainty whether they are using local, state or national roads across NSW.
“Duncan recognised that a more efficient and safer heavy vehicle industry would deliver growth for local economies.”

Sydney Qube intermodal terminal agreement reaches financial close

The agreement between Moorebank Intermodal Company and the Sydney Intermodal Terminal Alliance (SIMTA) for the development and operation of the Moorebank Intermodal Terminal Precinct has reached financial close.
SIMTA is owned by Qube Holdings, one of Australia’s largest freight logistic companies, following the acquisition of Aurizon’s interests in the land and project on 23 December 2016. Qube will develop and operate the open access freight terminal and warehousing precinct under a 99-year lease on the combined Commonwealth- and Qube-owned sites.
In June 2015, Moorebank Intermodal Company signed the agreement with SIMTA for the development of the Moorebank Intermodal Terminal Precinct, which merged the SIMTA and Commonwealth intermodal terminal proposals into one. Moorebank Intermodal Company will continue to be the Commonwealth entity responsible for facilitating the precinct’s development.
Dr Kerry Schott, Chair of the Moorebank Intermodal Company, said the precinct would deliver significant benefits to southwest Sydney and the broader New South Wales economy. “During construction, over 1,300 jobs will be created and once operations are at full capacity the site will employ approximately 6,800 people,” she said. “Together with the recently announced Commonwealth investment in airport infrastructure at Badgerys Creek, the Moorebank Intermodal Terminal will be a major economic contributor to south-west Sydney.”
The precinct will increase the proportion of shipping containers travelling by rail, remove thousands of heavy-truck movements from Sydney’s roads and the nation’s highways every day, and increase the capacity and efficiency of Port Botany.
Moorebank was identified as a priority location for a freight terminal in 2004 and, in October 2016, was included on Infrastructure Australia’s priority list for national infrastructure projects. The site has a direct rail link to Port Botany and the interstate rail freight network which, along with its proximity to major motorways, makes it ideal for an intermodal facility.
The precinct will include an import-export (IMEX) freight terminal with eventual annual throughput capacity of 1.05 million TEU, and an interstate terminal with capacity for 500,000 TEU.
Qube Holdings’ Managing Director, Maurice James, said the Moorebank precinct would transform the freight and logistics supply chain along the east coast.
“The Moorebank development is certainly a once in a lifetime opportunity and Qube is pleased to have reached agreement with Moorebank Intermodal Company to deliver this important piece of national infrastructure,” he said.
“Linking one of the nation’s busiest ports by rail to an inland facility with the sheer scale and location benefits of the Moorebank site is a game changer that will deliver huge long term benefits to both business and consumers,” he added.
Stage one of the project, which received planning approval in December 2016, will see the construction of the IMEX terminal with initial capacity of 250,000 TEU, rail links to the Southern Sydney Freight Line, and container processing areas. The first stage of the interstate terminal will follow with subsequent stages to be developed in line with demand, subject to future planning approvals.
The Commonwealth will invest around $370 million in the development, including funding the rail connection between the terminal and the Southern Sydney Freight Line and land preparation works.
Qube will develop, own and operate the terminals and has the development, property and asset management rights for associated warehousing. The precinct will include up to 850,000sqm of integrated warehousing when fully developed.
The IMEX terminal is expected to start operating in late 2018, and the interstate terminal in early 2020.

Australian Industry Group welcomes new NSW Premier

The Australian Industry Group (Ai Group) has welcomed the election of ex-Minister for Transport Gladys Berejiklian as state leader of the Liberal Party and Premier of NSW.
Ai Group NSW Branch Head, Mark Goodsell commented, “Her predecessor, Mike Baird, leaves a great pipeline of infrastructure building. The challenge for the new Premier is to ensure those projects are used to underpin a broad economic base for the state by maximising the opportunities available for competitive local companies and supply chains to contribute.
“Ms Berejiklian has proven in parliament to be very capable, intelligent and focused. Quietly, but with great determination, she has contributed to the state’s economic strength and its reputation as being open for business and the driver of national growth.”
Following the news of Baird’s retirement, the Australian Logistics Council (ALC) recognised the previous Premier of NSW’s work on merging councils to accomplishment more ‘joined up thinking’ on matters such as road access decisions, planning and curfews, and his contribution to improved efficiency and delivery of freight to and through NSW.
“Mr Baird, supported by the Hon. Duncan Gay MLC, Minister for Roads, Maritime and Freight, understood that the freight task in NSW was expected to double by 2031 and it was imperative that supply chains were operating efficiently, reliably and safety,” ALC said in a statement.
“Local government is an important player in the national freight industry, which is why council amalgamations and reform was such an important issue to tackle. Mr Baird forged ahead with council mergers, despite loud opposition. ALC congratulates Mr Baird on his retirement, and thanks him for his reform of NSW councils.”

Road Freight NSW partners with Linde Forklift

Road Freight NSW (RFNSW) has announced a new partnership with material handling equipment company, Linde Material Handling.
“RFNSW are excited about partnering with a well-known quality brand like Linde Material Handling,” said Simon O’Hara, General Manager, RFNSW.
Linde Material Handling, a company of KION GROUP, manufactures forklift and warehouse trucks and also offers intralogistics solutions including fleet management, automation and driver assistance systems.
“Linde is well known in the industry and our operators have said that the quality of Linde forklifts is second to none in the industry,” O’Hara added. “We are proud to welcome Linde to RFNSW as the partnership offers the opportunity to join our industry activities such as the RFNSW Conference, which will take place for the second time this year.
“Linde offers our members reliable quality machines that get the job done in the most efficient, productive manner. This partnership with Linde ensures that our members have access to the best quality forklifts and we look forward to introducing Linde to our members.”
Christine Nolland, National Marketing Manager, Linde Material Handling said, “We are proud to partner with Road Freight NSW. We see this as a wonderful opportunity to network with the members and share best practices in the industry – whilst providing us with insight to areas we can best participate in the development of the freight transport industry.”

Petrol tanker bursts into flames, two people dead

Two people have been killed when a petrol tanker this afternoon rolled over, bursting into flames and shutting Mona Vale Road on Sydney’s Northern Beaches.

Around five fire trucks are currently on the scene trying to control the blaze which has spread to bushland on either side of the crash site, threatening the local Pittwater RSL Club and homes near the intersection of Samuel Street.

Seargent LeSurf from Northern Beaches Area Command told Logistics and Materials Handling there has been a “significant collision” which has involved a number of vehicles.

Sources on the ground say a number of cars behind the tanker have also been burnt.

Paramedics arrived on the scene shortly after the incident.

There is estimated to be a couple of hundred people watching on, police are keeping onlookers back.

Local resident Elena Raso told Logistics and Materials Handling about five explosions were heard.

“The truck blew up,” Raso said.

“There’s fire all around it and it’s blowing towards Pittwater RSL.

“A couple of cars around it that have affected by the fire.”

Raso said the smoke has been “non-stop”.

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UPDATE 5pm EST

Fire and Rescue New South Wales report the truck fire has now been extinguished and a HAZMAT operation is underway.

More to come.

Shell Australia launches new biodiesel facility in Western Sydney

Shell Australia today launched a new biodiesel facility at its Parramatta terminal to supply its Biodiesel 20 (B20) product to the New South Wales market.

Shell’s vice president downstream, Andrew Smith said the launch of B20 transport fuel in NSW is a response to customer demand to reduce the environmental impact of fossil fuels and potential liability under the Federal Government’s carbon pricing scheme.

Smith said that market research showed more than 50 per cent of commercial customers would consider using B20 in their fleets for either taxation or environmental reasons.

“Shell is committed to understanding customer needs, and when we asked them if they would consider using B20 if it was available 28 per cent they said they would because of the tax benefit,” he said.

Under current carbon pricing, biodiesel attracts a zero impost by the government.

“Given the zero rating of biodisesel under the carbon pricing scheme, using a B20 fuel in their trucks can help affected customers significantly improve their bottom line.

“A further 36 per cent said they would consider B20 because of the positive environmental aspects of using the fuel.” Smith said.

Shell’s B20 is a combination of diesel and a bio component produced from vegetable oils or animal fats that meet Shell’s sustainability standards.

Logistics Magazine announced the launch of Shell’s Diesel Extra fuel in 2011, at the time senior fuels and lubricants technical advisor Mick Pattinson, said the new fuel would help the road transport sector improve fuel efficiency and reduce their maintenance costs. According to the company, the Shell Diesel Extra can deliver fuel savings of up to 3 per cent over the lifetime of a vehicle compared to regular diesel.

Discussing biodiesel’s future in the mining sector, Australian Mining reported that bio-fuels can save company’s money and reduce emissions, but like any new technology, some adjustments need to be made when it comes to implementing the technology on mine sites. There are a number of both advantages and complications of using higher blended fuels.

At the time Ellis told Australian Mining that a "financial incentive around the carbon pricing scheme and environmental incentives" were "two key reasons we’d expect mining companies would be interested in this fuel."

Darren Barwick, Shell’s technical mining team leader, points out that choosing the right feedstock for biofuel is the key to ensuring it works for your business but admits there is "no perfect feedstock that fits every application".

Barwick said that although biodiesel can be used now on current infrastructure, things like poor quality feedstocks can create operational issues.

Because biodiesel is made from biological products it reacts differently to mineral diesel when put under different pressures and these are the most important things to keep in mind when making the decision to incorporate the product into operation systems.

However given its higher flashpoint, biodiesel is also less likely to ignite than conventional diesel providing an additional level of safety for underground mining application, as opposed to LNG or other such products where you have to invest in new infrastructure and technology.

He added biofuels held a distinct advantage for companies because they can use them ‘straight away’.

Barwick says interest from mining companies who want to incorporate the fuel is strong.

“There is definitely interest in using bio fuels,” he told Australian Mining.

“They know it’s there but don’t know much about it or who may be a bit worried about using it because in the past there has been some poor quality bio fuels in the market place which has caused issues.”

Biofuels Association of Australia said adopting second generation technologies when they become viable will be a key way to sustain the mining, transport and infrastructure industries but says alternative feedstocks are needed, as well as additional infrastructure and more consistent access to markets.

B20 is already available from Shell’s Melbourne terminal and Shell said they plan to expand availability across the country.

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