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.”

Why Hanjin's ships are stranded around the globe

The collapse of South Korean company Hanjin Shipping has left ships, cargo and crews stranded around the globe. It highlights the complex consequences of a shipping company going bankrupt, with Hanjin’s creditors and customers waiting to see whether the business can be saved.
Hanjin Shipping Co is one of the world’s top ten container carriers, operating some 70 liner and tramper services, transporting more than 100 million tons of cargo annually. Its fleet consists of some 150 container ships and bulk carriers.
Increased competition and Hanjin’s own high debt levels have led to its demise, as it struggled to adapt to changes in the market. Demand for shipping has fallen since the global financial crisis, at the same time as technology has started to produce larger mega-ships. Over capacity is one major problem.
Container operators are also increasingly constrained by competition laws in the US, the EU, Japan and more recently, China. It is a scenario playing out among other shipping companies in what appears to be a major readjustment of the size and operations of the world’s shipping fleet.
The company’s financial woes have caused it to seek protection from its creditors through Korea’s corporate “rehabilitation” laws. This is similar to Chapter 11 bankruptcy in the United States. This is where the insolvent debtor restructures the debts it owes to creditors, according to a rehabilitation plan, while the company continues its operations.
Under South Korean law, the plan must be approved by the creditors and the court and it is then implemented by a nominated receiver. The receiver is now in charge of Hanjin’s operations, and its ships, worldwide.
In the meantime the chairman of Hanjin Group has transferred 40 billion South Korean won to the company to help unload cargo stranded on the its vessels, but regulators have warned securing further funds could take “considerable time.”
Ideally, the plan will give Hanjin sufficient breathing space while the receiver restructures its business into perhaps a leaner operation, or one in which others, including creditors, may take a financial interest.
Ships are unusual assets for a receiver or liquidator to deal with. A shipping enterprise can be extensive geographically – with ships at all points of the world, and difficult logistically – with those ships at various stages of cargo handling. A range of other players – the owners of vessels chartered to Hanjin, and bunker (fuel) suppliers and port agents in many different countries – all add to the complexity.
Typically, a liquidator takes possession of the fixed assets of a failed business – land, plant and machinery – assets that stay put and can be located and secured. While some of those assets may be overseas, shipping collapses invariably involve the application of cross-border insolvency laws.
Ships travel from place to place and can be hard to find and secure. Maritime law is unique for that reason; for example, the ship’s crew have a direct claim on the ship itself for their unpaid wages – a maritime “lien”. They can have a court marshal board the ship, to arrest and secure it under a court order.
Arrest involves the marshal attaching an arrest warrant to the ship’s cabin or mast, and taking steps to prevent the ship leaving its mooring. This right of a crew dates back to the days when unwanted and unpaid sailors might find that while on shore leave at a distant port, their employer, the ship owner, sails off.
Others also have rights to arrest a ship at various ports around the world, this is happening right now with Hanjin. The South Korean receiver will be resisting these arrests of Hanjin’s ships.
However one of the fundamentals of bankruptcy is that ordinary unsecured creditors owed money have to wait in line for the receiver to decide how best to deal with the insolvent business. This includes realising assets to pay and what can be paid in way of dividends to those creditors – in many cases only 10 cents in the dollar, if they are lucky. Some maritime liens and other claims give the relevant creditor a “secured” claim, one that is paid out first before the ordinary creditors.
It appears that the South Korean receiver Mr Tae-Su Seok is applying to various courts around the world for orders to challenge what may be secured claims. Well developed international cross-border insolvency laws will help him access to foreign courts to obtain orders protecting the ships in that jurisdiction. At the same time, he will be looking for funds to try to keep any profitable parts of the business going.
The shipping world is waiting to see how and whether the Hanjin rehabilitation succeeds. Other major collapses, for example in Korea with Pan Ocean and Korea Line Corporation, have resulted in creditors’ claims being considerably compromised. In these cases only a certain percentage of debts were repaid and over a period of time, or creditors took equity in the shipping company.
Given the state of world shipping, that outcome may occur here. The shipping industry suffers from an inherent inflexibility in responding to changing economic conditions. There may be a decline in demand for certain goods, leading to a drop in shipping rates.
A shipper taking delivery of a new vessel some long time after it was first commissioned may be left high and dry in finding that there is a much reduced demand for its services. On the other hand, a shipping company’s leaner world fleet may find that it does not have sufficient capacity when trade conditions quickly change.
While ships will always be needed, shipping is finding increased competition from air freight services, transporting many goods – food for one, and technology consumables – unsuitable for longer shipping delivery times. Demand for the latest iPhone 7s, or fresh fruit, would call for overnight air freight, rather than weeks. Pirate incursions are another current risk.
Still, the huge capacity of ships will never be offered by flight and this remains a major advantage. Ship design and technology is also improving – computer guided “crewless” ships are on the horizon. But shipping remains a business subject to the vagaries of international trade and economic conditions.

Mr Ryan Eagle, Partner, Ferrier Hodgson, Sydney, provided assistance in writing this article.
The Conversation
Michael Murray, Fellow, Queensland University of Technology
This article was originally published on The Conversation. Read the original article.

Glencore's Chemoil introduces further competition into Australian fuel market

Chemoil, a wholly owned subsidiary of Glencore, will commence physical bunker fuel supply operations from Port Kembla in New South Wales from 2 April 2016.

Subject to final approvals, Chemoil will also deploy a bunker barge, capable of supply both marine fuel oil and marine gas oil, to support its operations and offer bunkering via barge in Newcastle, Port Botany and Eden. 

Chemoil will partner with United Maritime Australia for its barging operations.

Established in 1981, Chemoil is one of the world's leading fuel suppliers (diesel and marine fuels) to industrial customers across the sea, air and land sectors.

Mr Brett Crawford, Manager of Glencore's Oil business in Australia, said: "While Glencore does not own refineries in Australia, our global network and marketing expertise allows us to efficiently and competitively source, ship, store, blend and deliver a broad range of fuels for our customers."

"The addition of Port Kembla will further strengthen Chemoi's supply network throughout Australasia and is an important strategic step for the company as it expands its offering to ship owners, cruise lines, brokers and agents," said Mr Crawford.

Three Fatal Truck Crashes on NSW Roads in Three Days

Transport Workers' Union NSW Secretary Michael Aird has said that three fatal truck crashes on NSW roads over the past three days were a tragic reminder of just how dangerous the road transport industry is and reinforced why we need to lift the pressure on truck drivers.

"In the past three days, three people have trafically lost their lives in truck crashes on NSW roads," Mr Aird said.

"These fatalities are absolutely devastating and our thoughts are first and foremost with the families and loved ones of those who have lost their lives.

"We are calling on the authorities to conduct a full and thorough investigation of each incident to ensure we find out exactly what happpened. This should also include Workcover NSW because the roads are the truck drivers' workplace."

Mr Aird said that these fatal crashes were a tragic reminder of just how dangerous the road transport industry is, with around 330 Australians hilled in truck crashes every year.

"While we do not yet know what caused these crashes, we have decades of evidence that shows impossible deadlines, dangerously low rates and unrelenting economic pressure on truck drivers creates a cocktail for disaster," Mr Aird said.

"The Road Safety Remuneration Tribunal was established in 2012 after decades campaigning by transport workers, their families and communities to stop the carnage on our roads. It has the power to hold transport clients to account for their pressure on truck drivers and it has published a minimum rate for some owner drivers that is due to come into force on April 4. 

This will set an absolute floor on the minimum rate to do the job safely, hold clients accountable for their role in the transport supply chain and pay drivers for all their time at work.

"But we have big retailers, politicians and lobby groups determined to see the Tribunal swept away so that the big end of town can keep lining their pockets at the expense of safety on our roads. TWU truck drivers will visit Canberra next week to reinforce the message that profits should never be put before Australian lives."

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