Planning for the Outer Harbour freight vision has entered a new phase, with the appointment of Tim Collins as Project Director for the Westport Office.
Collins has more than 20 years’ experience in port-related strategic planning, commercial management and logistics.
He will be responsible for overseeing the development of the long-term strategic plans for the Port of Fremantle’s Outer Harbour and future Inner Harbour, ensuring that the community and stakeholders are engaged and consulted at every stage.
Collins’ background includes leading major state supply-chain operations as Business Development Principal for Arc Infrastructure and as Executive Manager Logistics for the CBH Group.
He will assume the role on 30 January.
“Mr Collins’ wealth of knowledge and experience in port operations will be highly valuable to the Westport Taskforce’s investigations that will guide the state government’s planning and development of the Outer Harbour port facilities,” said Rita Saffioti, Transport Minister, Western Australian Government.
“I am confident he will provide strong leadership in developing Westport’s strategic plans for the necessary infrastructure and road and rail links that will maximise long-term economic benefits and future job opportunities.”
Australian rail freight operator Aurizon is assessing a plan to by the Wiggins Island Coal Export Terminal (WICET) in Queensland, reports the Australian Financial Review (AFR).
The AFR adds that the rail operator had been looking to partner with Macquarie, with Aurizon acquiring the port’s terminal and investment banking group Macquarie getting the port’s biggest customers. After the recently sale of major Curragh coalmine to a US coal producer Coronado Coal, it is unclear whether Macquarie will still be interested.
“Aurizon […] continues to consider its proposal for WICET and in that content is still reviewing the announcement on the sale of Curragh mine,” a spokesperson said.
Following feedback from members about the difficulty in accessing and maintaining up-to-date data on shipping line import/export detention rates, the Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have launched an online detention calculator.
A detention fee is applicable when shipping line customers hold containers for longer than the pre-arranged period of free time.
Developed in collaboration with mizzenit.com, the calculator allows members to calculate and compare detention costs from 18 lines.
It can be found on the FTA’s website.
Materials handling equipment manufacturer Kalmar, part of Cargotec, has signed an agreement to acquire the port services business of Inver Engineering in Australia.
The investment reportedly supports Kalmar’s strategic aim to grow in services while strengthening and broadening the company’s existing service capabilities throughout Australia, New Zealand and the Pacific.
The acquisition closed on 29 December, 2017.
Inver Engineering, a privately owned company established in Melbourne in 1981, services ports, and the rail, petrochemical, oil and gas and manufacturing industries, while Inver Port Services, part of Inver Engineering, provides repairs, maintenance and crane refurbishment projects for terminal operators across Australia, New Zealand and the Pacific.
“We are excited to welcome the Inver Port Services team to Kalmar Australia,” said Peter McLean, Senior Vice President, Kalmar Asia-Pacific. “The region is a strategically important market for Kalmar and this acquisition further strengthens our capabilities to serve our customers in ports and terminals across the region.”
Western Australia’s McGowan Government has implemented financial incentives to reduce truck congestion and get more freight on rail to Fremantle Port.
As committed prior to the last election, the container rail subsidy increased from $30 to $50 per Twenty-foot Equivalent Unit (TEU) from 1 January 2018.
The plan aims to reduce truck traffic on roads around Fremantle Port by encouraging more freight on rail.
The Western Australian Government’s integrated plan for freight and trade includes a target to boost rail mode share to 20 per cent – an increase of approximately five per cent.
The subsidy will be paid for all loaded containers that move between North Quay Rail Terminal (NQRT), Forrestfield and Kwinana, as well as for containers filled with hay received by rail at NQRT for export.
“Increasing the rail share for container haulage is one of several initiatives to improve efficiencies at the Inner Harbour to facilitate trade growth until additional port facilities are viable,” the Government said in a statement, adding that others include supporting the development of the Westport: Port and Environs Strategy; development of the broader rail supply chain, including intermodal facilities; and upgrading road infrastructure linkages around the inner harbour.
“The rail service plays a significant role in achieving greater efficiency in the container supply chain as well as improving community amenity and environmental benefits along metropolitan roads that link to Fremantle Port,” said Western Australian Transport Minister Rita Saffioti.
“That is why the McGowan Government has delivered on its election commitment to increase the container rail subsidy to encourage more container movements on the port rail service.”
The Westport Taskforce today released Westport: Preparing for the Strategy – the Western Australian Government’s first discussion paper towards delivering its Outer Harbour vision.
In releasing its first discussion paper, the taskforce is inviting stakeholders to join the conversation on key factors that need to be investigated in the development of the Westport Strategy.
Feedback on the discussion paper will be accepted until 5.00pm on 31 January, 2018 and can be submitted online.
A consultation summary will be made available at the end of February 2018. It will summarise the comments received and outline the updated Westport methodology.
“We are making sure we have the right people and structures in place to deliver a real and committed plan to help secure the freight future of this,” said Rita Saffioti, Transport Minister.
“Many people are interested in the planning and development of the new port, and we are interested in hearing their views.
“The Westport Taskforce will consider a range of aspects in preparing its strategy, including the environmental, economic and social impacts of developing a new port.
The Port of Melbourne risks becoming an “international laughing stock” if industrial action that has disrupted stevedore Victoria International Container Terminal (VICT) is permitted to continue, according to the Victorian Transport Association (VTA).
The VTA’s warning is in response to VICT’s revelation that the person the Maritime Union of Australia (MUA) is pressuring the stevedore to employ is ineligible to work on docks under Australian law because he failed to obtain a Maritime Security Identification Card.
“It is an affront to every Port of Melbourne stevedore and freight operator working in and around the port that the Victorian economy is continuing to be held to ransom by the MUA over what we now understand is a legal reason for this individual being ineligible for employment at the docks,” said VTA CEO, Peter Anderson.
“The effects of this ongoing action at our busiest time of the year are being felt right throughout the economy when you consider that the more than 1000 containers and their contents sitting idle at Webb Dock cannot be brought to market and sold to consumers during our peak retail trading period.
“Not only are VICT and the hundreds of freight operators that cannot move containers in and out of the terminal being impacted by this recalcitrant industrial action, so too are hundreds of small business operators and their families that are being denied access to goods demanded by Victorian consumers.”
Anderson said it was a potential sovereign risk to the broader Victorian economy and the Port of Melbourne’s position as the nation’s largest port if the action is allowed to continue.
“VICT is already losing business to other Port of Melbourne stevedores through this action, but if foreign exporters determine Melbourne is an unreliable destination for freight forwarders they will send their business to ports in other states, at a massive cost to our economy,” said Anderson.
“So, while this action may be confined to VICT for now, the real risk as we see it is the long-term reputational and economic damage the action will create for Victoria as a place to do business.”
Anderson implored all stakeholders involved in the action to put the interests of the Victorian economy first and work constructively to bring an end to industrial action that is undermining the state’s hard-fought reputation as a reliable place to do business.
“This is not the time for our leaders to run and hide but rather confront the real issue of adverse union action that is brutal and selfish, and has a negative effect on the livelihoods all Victorians,” he said.
Tasmania-based Australian Maritime College will offer two new degrees from 2018 – the Bachelor of Global Logistics and Maritime Management (Honours) and the Master of Logistics Management (Advanced).
According to Dr Peggy Chen, Interim Head – Department of Maritime and Logistics Management, logistics is the key to international trade and the new degrees will help support the developing needs of the important sector.
“We are very excited to see these two degrees offered to keep our advantage in providing a unique undergraduate degree with two cores – global logistics and maritime management, and to provide specialised logistics management at master level,” said Dr Chen.
The Bachelor of Global Logistics and Maritime Management (Honours) is a four-year program designed to prepare students for management careers in the maritime and logistics industry.
The course combines core business principles, such as accounting and finance, business law, international business management, and strategic management, with industry-specific learning, such as port and terminal management, ship operations management, maritime economics, logistics management and supply chain management.
The Master of Logistics Management (Advanced) is a two-year program designed for people seeking professional careers in the global domain of logistics management, logistics strategies and supply-chain management.
The program provides theoretical, practical and applied knowledge suitable for both higher-level professional and managerial roles.
Dr Chen said the decision to offer the new courses now is deliberate, reflecting industry needs and capitalising on the demand for specialists.
“AMC was among the first to observe that traditional shipping companies suddenly transformed into more of logistics service providers, because this was where the demand was and continues to be. The maritime and logistics industries underpin international business and world trade,” she said.
The Bachelor of Global Logistics and Maritime Management (Honours) replaces the Bachelor of Business (Maritime and Logistics Management), which Dr Chen said has reflected industry needs for more than a decade.
In the development of the Master of Logistics Management (Advanced), AMC seeks to respond to the expected increased demand for specialists in areas such as logistics management, supply chain management, warehousing and procurement.
It follows three market surveys conducted in 2016 which focused on the potential for growth in student enrolments in the postgraduate space, for prospective student cohorts from either Australia or overseas, including countries such as India, China and South-East Asia.
“Further provision of education in logistics management through these new courses will build AMC’s reputation in providing specialised workforces and experts in facilitating or managing Australia and international supply chains, in particular in the maritime supply chain,” said Dr Chen.
The Victorian Transport Association (VTA) has issued advice to its members on dealing with the fee hikes introduced in recent months by Australia’s major stevedores.
“These increased charges have been introduced with the carrier not being able to negotiate and there is obliged to pass them on directly to the customer,” VTA CEO Peter Anderson said in the message.
The VTA recommended informing customers how the additional charge will be invoiced and forwarding any formal correspondence from stevedores to further explain the fee.
“Given that both direct and indirect terminal access costs are increasing and significantly different across the three terminals, it is important that the carrier industry is able to accurately quantify and incorporate these costs into their charges,” Anderson added.
Predicting further fee hikes in the future, Anderson announced that the VTA will establish a terminal access cost model for wharf-based operations– for release in early 2018, and will make recommendations to assist the container industry in better communicating with customers “in an effort to recompense many cost increases out of the carriers’ control.”
Shipping company Wallenius Wilhelmsen Logistics ASA (WWL) will sell its inland transportation and technical service business in Australia to Australian vehicle storage and transportation company Prixcar, in exchange for a 20 per cent ownership share in Prixcar.
WWL will remain an active participant in the market through board representation and close cooperation with Prixcar.
Prixcar provides finished vehicle logistic services in Australia with a nationwide footprint. Its primary focus is inland transportation and technical services for the auto segment, complementing WWL’s focus on the heavy truck, rolling equipment and machinery segment. The joint business is expected to have an annual turnover in excess of $250 million and a team of over 1,000.
“This transaction and our new partnership with the Prixcar Group will increase the scale and geographic reach of our Landbased activities in Australia, providing our customers with an enhanced product,” said Craig Jasienski, President and CEO, WWL ASA.
Alan Miles, Chairman, Prixcar Services, added, “The joining of these two companies – both sharing similar values with a strong focus on safety, people, innovation, environment, and our customers – will assist in enabling the group to further expand its ability in creating value for its employees, customers and business partners, offering an expanded range of both services and locations.”
The transaction is subject to regulatory approvals in Australia, and expected to close in Q1 2018.
The transaction does not include WWL’s Terminal business, for example the Melbourne International Ro-Ro Automotive Terminal (MIRRAT).