Rohlig opens Sydney warehouse facility

International freight forwarding firm Rohlig Logistics has opened a new 6,000m2 warehouse in Sydney.
The new warehouse is equipped with the latest in warehousing and logistics technology, including a sunken dock with a seven-metre in-ground hoist capable of handling 14 tonnes of airfreight. Additionally, the facility will be able to handle up to 4,000 pallet spaces, covering from warehousing and freight, to contract logistics.
“Our research and development team are always looking at new processes and technologies that can streamline our operations, deliver cost savings and efficiency, while also adding value for customers,” said Hany Amer, Managing Director, Rohlig Australia. “The sunken dock, for example, means we are able to cope with much bigger loads and offer more services than any of our competitors.”
This new addition to the organisation’s operations is the latest in a line of improvements to facilities in Brisbane, Melbourne, Freemantle and Adelaide, following the launch of a small parcel service last year and a new customs consulting service.

Moorebank to support continued land value growth in Sydney

The completion of stage one of Moorebank Intermodal and commencement of stage two is likely to help land value growth rates in Outer West and South West Sydney over the next 12 months, according to Colliers International’s recent report – Sydney’s second airport: The catalytic effect of transport infrastructure.
Over the previous 12 months land values in the Outer West and the South West sub markets have increased by 24 per cent and 21 per cent, respectively.
Other factors set to help maintain double-digit growth over the coming year include developments under the Western Sydney Infrastructure Plan and the continuing shift of industrial users to the west of Sydney. Relocation is proving popular due to relatively cheaper land values and rents, larger sites with custom-built facilities and stronger infrastructure links with new facilities coming soon.
“Industrial land values across the Sydney market have recorded positive annual growth over the past few years, and have entered double-digit growth since March 2014,” said Sass J-Baleh, Manager – Research, Colliers International in the report. “More recently, land values have soared, with annual growth rates in the high 20 per cent since the end of 2015. Record growth rates are expected to continue across all of Sydney’s sub markets. However, there are different fundamental drivers for this growth between the inner sub markets and the outer submarkets.”
Growth in the inner sub markets was found to be driven by stock scarcity due to rezoning, a situation that is not expected to reverse as land previously zoned as ‘industrial’ is being developed into residential infrastructure including dwellings, roadways and train stations.

Qube raising $350 million equity for Moorebank

Qube has announced a $350 million equity raising to fund new warehousing and strategic growth initiatives for Moorebank Logistics Park, Australia’s largest intermodal precinct.
Earlier in May, Qube officially commenced development at Moorebank and it is now in discussions with potential tenants for the development.
Qube has announced that it expects to fund the construction of at least $80 million of new warehousing for Moorebank, including the warehouse for the soon-to-be-announced first tenant as well as an initial warehouse facility for Qube Logistics, and construction is expected to commence in early 2018.
“Qube is pleased to have achieved a further important milestone, with the development of the first new warehousing at Moorebank bringing us a step closer to realising the substantial benefits that the Moorebank project will deliver for customers, suppliers, and the entire East Coast freight and logistics chain,” said Maurice James, Managing Director, Qube.
“We are delighted with the initial reaction of potential tenants to the transformational proposition that is provided by the Moorebank facility” he added.
New warehousing at Moorebank is to be built on demand and with pre-commitments from tenants.
Qube has invested around $140 million in the 2017 financial year to date to acquire the remaining 33 per cent of Moorebank it did not already own and on initial development capital expenditure, Qube expects to invest $400 million of capital expenditure in the development of Moorebank – excluding warehousing and rail shuttle capital expenditure ­– over the first 5 years.

DB Schenker, DPWA and Hamburg Sud join forces for blockchain trial

One of the largest and most comprehensive trials of blockchain technology for global supply chains has successfully ended with a new Australian-developed blockchain security architecture from TBSx3 which has the potential to raise global supply chain security to a military grade.
The TBSx3 system uses military-grade 44-alphanumeric-character security cryptography, compared to the six-digit public cryptography which up until now has been commonly used.
The new TBSx3 benchmark was successfully used on an 8,100km global road-and-sea supply chain stretching from the wine-growing Coonawarra region of rural South Australia to the port of Qingdao in north-eastern China, which ended this week.
Partners included DP World Australia, DB Schenker, Hamburg Sud and Australian wine producer IUS, which exports seven product lines into the rapidly growing Chinese wine market.
KPMG advised TBSx3 on the trial and verified the custodial handovers for the integrity of the product on the 8,100km land-and-sea journey. Furthermore, KPMG simulated the customer at the end of the trial by receiving, validating the product and checking if the system could potentially detect duplicates.
Ron Koehler, CEO, DB Schenker Australia and New Zealand, said, “In a globalised world, the safety and security of supply chains for the medicines you buy, the food you eat, the parts that are used for your cars and the planes you fly in cannot be taken for granted.
“Supply chain security affects everyone – consumers, companies, communities.
The Hon. Arthur Sinodinos, Minister for Industry, Innovation and Science, added, “Blockchain is an exciting technology with great potential for Australian businesses and SMEs. It promises to reduce costs, create new market opportunities and transform industries.
“Importantly the technology provides a new opportunity for Australian exporters and their customers to verify the authenticity of their products, protecting the reputations and brands of both Australia and Australian business.”
The successful completion of the trial between Australia and China is the first of a planned series with multiple partners which will “simultaneously test the robustness of TBSx3 blockchain technology for every custodial link in global supply chains and also verification protocols for both bulk product and individual items for retailers and consumers at the end of the chain,” according to TBSx3’s Chairman, Anthony Bertini.
“In terms of the numbers of partners simultaneously involved and the challenges posed for resolution of integration with multiple existing proprietary security systems we believe this can be developed to become a new security benchmark.”

Australian airports fitted with high-tech x-rays for US-bound cargo

Ground-handling company dnata Australia has invested $1.5 million to install five state-of-the-art x-ray machines in Sydney, Melbourne, Brisbane, and Adelaide, in keeping with the mandated Piece Level Screening requirements for cargo consignments to the United States.
The new infrastructure has been put in place at the airports dnata operates in ready for the 1 July deadline. Along with changes to cargo screening that have been imposed by the Office of Transport Security (OTS) in conjunction with the US Transport Security Administration (TSA), dnata has identified improvements in operating procedures and provided training for their staff to ensure compliance with the increased security measures.
All cargo that passes through dnata’s facilities across Australia travelling to the US – either on a direct flight or via another airport – will be subject to the screening requirements.
The changes in cargo screening will impact airline carriers and the extended freight forwarding community, and dnata has been “working closely with customers, government authorities and other cargo terminal operators to ensure that the processes that are being evaluated are not only the most safe in the industry but also efficient and supported by our customers,” the company said in a press release.

Good investment, bad investment

This column first appeared in the February/March 217 issue of Logistics & Materials Handling Magazine.
There has been much talk recently about budget repair and ‘good’ and ‘bad’ debt. It comes at a time when government debt and interest rates are very low by historical standards, and when Australian governments still have excellent credit ratings compared to other countries. In that environment, surely it would be a good time to borrow to fund infrastructure?
It is an important question, but it carries the danger of over-simplification: The oversimplification is the suggestion that all borrowing for spending on infrastructure is ‘good’ and all borrowing for other purposes is ‘bad’.
In reality, however, it is more important that any borrowing or, indeed, any spending by government, be a good investment, whether it is spent on infrastructure, on one hand, or on education or health, on the other.
The tale of the two trains illustrates the point. One train is the Very Fast Train between Sydney-Canberra and Melbourne for passengers.
The other is the Inland Rail Project between Melbourne and Brisbane for freight.
The former is glamorous and attractive to people who might use it, but has an extremely weak economic case, particularly as the route is already well served by air, something which will only get better with the building of Sydney’s second airport.
The latter gets little public attention and very few people will actually travel on it, but its economic case is convincingly sound and ultimately it will greatly benefit many people.
Alas, freight does not vote, even if its efficient delivery improves the lives of those who do.
To build the former would be worse than useless. It would take valuable resources away from more worthwhile ones. Recently, the respected Grattan Institute produced some sobering and disheartening research on how badly Australia evaluates transport infrastructure. It looked at all 836 projects that cost $20 million or more since 2001. Premature announcements – when a politician promises to build a road, bridge or rail line without a funding commitment, often in the run-up to an election – caused three-quarters of the $28 billion in cost overruns, yet they comprised less than a third of the projects, the research found.
In short, when proper analysis is done before a commitment is given, projects generally run on time and on budget. The Grattan Institute said, “All main political parties have committed to sound planning of infrastructure, and to making decisions with broad social benefit, yet in practice they continue to promise projects that Infrastructure Australia (IA) has not evaluated or has already found to be not worth building.”
The Australian Logistics Council (ALC) has long supported IA and the need to do proper cost-benefit analyses, particularly as infrastructure funds are getting harder to find and the freight task in Australia is growing rapidly.
The ALC has a major role in making the public aware not only of the need to build the infrastructure required, but also of the need to avoid diverting precious funds into projects that have low or even negative economic return.
Ultimately, politicians in a democracy must make the decisions on what infrastructure to build. However, by ensuring the information is out there on how wasteful and irresponsible bad decisions can be, they can be constrained from making them.
Former Infrastructure Minister and Deputy Prime Minister John Anderson has made a spirited case for the Inland Rail Project because IA has, on the most conservative projections, proved its economic value. Even such an obvious candidate as Inland Rail – connecting not just Melbourne and Brisbane but also, via Parkes, Adelaide, Darwin and Perth – faces political difficulty through lack of national coordination.
Anderson’s environmental and safety case for Inland Rail was also impressive, but without a national strategic context the argument is in danger of being lost.
Of course, Australia faces an extra difficulty beyond identifying economically sound infrastructure projects: a three-tier federal system of government – each having the capacity to make things difficult for the development of national infrastructure.
Local governments can impose load limits and curfews on their roads to appease their ratepayers, but at a cost to the national supply chain. They can also oppose freight-related proposals and allow development in places that should be preserved for future transport corridors.
A classic example is the opposition to the development of the Moorebank Intermodal Terminal in Western Sydney.
State governments can also change land uses and produce transport plans that end at their borders with the aim of serving their own cities and towns, without reference to national freight requirements.
This state of affairs cries out for the development of a coordinated national freight and supply chain strategy to embrace not only new infrastructure but also the uniform regulation of all transport modes to reduce compliance costs.
When people bemoan the lack of national productivity reform, the logical industry to take on a national focus is Australia’s freight industry, which represents 8.6 per cent of the national economy.
It obviously has to be led by the Federal Government, which raises about 70 per cent of revenue in Australia. If it lacks constitutional power to legislate, it can use its financial power to persuade. It can also persuade the states to rein in local governments’ predilection for ratepayer interests over national freight needs.
Some progress has been made with the National Heavy Vehicle Regulator whereby a national scheme has begun using mirror state-by-state legislation.
Last year, further progress was made with the abolition of the Road Safety
Remuneration Tribunal, something ALC opposed from the beginning. The tribunal had less to do with road safety than with being an industrial-relations exercise on driver pay. Progress like this, however incremental, requires sustained, industry-wide, evidence-based advocacy. But there is a long way to go.
The crying need for a national freight and supply chain strategy has prompted ALC to make the theme of its annual ALC Forum this year: Getting the Supply Chain Right. This is not about ‘players’ in an industry. It is a highlevel, intelligent discussion about national functionality. In the past, the ideas emerging from the Forum have significantly influenced national thinking, and will continue to do so.
When issues are fleshed out in detail the results usually carry more weight.
A national freight and supply chain strategy must also deal with financing.
Corridors cannot be preserved and bottlenecks removed without money. There is no point in building a grand piece of infrastructure if the linking bits are missing.
In 2014 and 2015, ALC and others were promoting the use of ‘asset recycling’ as a means of getting more into the infrastructure funding pool. The idea was that governments would sell existing working assets and then use the money to invest in new infrastructure where the private sector was not willing or able to.
The advantage of governments doing start-ups is that it can get the finance using low interest rates and high credit ratings. It can sustain the great risk in any new infrastructure project. But once built and functioning, the government is often not especially good at running such infrastructure. Rules-based bureaucracies avoid risk, cover their patch and are not especially interested in seizing opportunities to innovate and expand. At that stage, governments should sell and use the money for the next initiative.
A national freight and supply chain strategy would provide a better framework for asset recycling.
The ALC has constantly urged that the provision of supply-chain infrastructure and logistics be above politics. The supply chain is national – the freight task is national. It does not stop at state borders and it requires vision that can be delivered by a national freight and supply chain strategy.

Shippit turns down $5M funding boost

Sydney-based logistics and shipping business Shippit has rejected a $5 million investment offer in its Series A funding round, instead accepting $2.2 million to fund in order to drive its growth and Asia-Pacific expansion.
250,000 parcels are delivered via Shippit’s platform each month, and many of the company’s 750 clients are major retailers, including Harvey Norman, Sephora, Topshop, Thankyou and Pet Circle.
Shippit’s Series A funding round attracted strong investor interest due in part to the company’s announcement of significant growth of its subscriber base and a 200 per cent increase in monthly profits.
“During the raising process, Shippit’s user base grew ahead of our projections which reduced our capital requirement and prompted us to review our growth ambitions,” said co-CEO Rob Hango-Zada.
Hango-Zada and his co-CEO William On decided to reject the $5 million investment secured through the funding round, having calculated that the growth push would cost around $2 million.
“We’ve always been fiscally responsible, however when we reconsidered the amount that was required to fuel our next phase of growth, the figure was actually much closer to [$2.2 million],” Hango-Zada added.
“We received a humbling flurry of interest, however, we didn’t think it would be wise to accept more capital than we actually required. The purpose of this raise was specifically to obtain growth capital to invest in strategic hires, building out the local team, as well as supporting rapid expansion into international markets.”
Lead investor Aura Group, a well-established venture fund, has experience dealing in the APAC market, which will benefit Shippit as it makes its bid for the market.
“Shippit stood out to us because of the scalability of its platform and its alignment to the global opportunity being driven by the transition of retail into e-commerce,” said Eric Chan, Managing Director, Aura Group.
“The predominant reason we invested, however, was because we believe Shippit has the right founders to execute on a well-considered strategy and vision.”

ALC announces safety and compliance summit

The Australian Logistics Council (ALC) has announced that its 2017 Supply Chain Safety & Compliance Summit will take place 5–6 September at ICC Sydney.
With the Government continuing to develop the National Freight and Supply Chain Strategy, this year’s Summit will consider how the Strategy can be used to improve safety outcomes in the freight logistics industry.
Another key focus at the Summit will be the significant extension to Chain of Responsibility, set to come into force in 2018, that will extend the legal obligations and liabilities of executive officers and company directors.
The 2016 Summit brought together over 300 industry representatives to benchmark, share best practice and identify gaps where improvements are needed. The 2017 Summit will again attract representatives from all parts of the supply chain, including customers, suppliers and logistics providers.
“The Supply Chain Safety & Compliance Summit is a valuable opportunity to raise awareness of changes to CoR obligations and advise industry on improving safety and compliance levels,” said Michael Kilgariff, Managing Director, ALC. “The event will serve as a platform for policy discussions, workshops and consultations and we look forward to an active and engaging series of discussions.”
Find out more.
 

Moorebank Logistics Park launched

The launch of the Moorebank Logistics Park has been described by the Australian Logistics Council (ALC) as a “watershed moment” in the continuing transformation of Australia’s freight networks.
“Given the Federal Budget’s significant investment in freight infrastructure and the continuing development of the National Freight and Supply Chain Strategy, it’s an auspicious moment to mark the establishment of what will become the nation’s largest intermodal freight precinct,” said ALC Managing Director Michael Kilgariff.
“This nationally significant project was included on Infrastructure Australia’s Infrastructure Priority List and, according to government figures, is expected to create some 6,800 jobs and deliver $11 billion in economic benefits over the next three decades. The strategic location of this site, at the very heart of New South Wales’ freight network, is second to none.”
Kilgariff added that more efficient road and rail connections from ports to intermodal facilities would be key in meeting the country’s growing freight task, reducing road congestion and improving community amenity.
“The Moorebank facility is central to achieving this around Sydney’s heavily congested M5 corridor,” he added. “At the same time, its ability to transport 1.5 million TEU each year from Port Botany by rail will support the NSW Government’s goal of boosting rail freight to and from that port from its current 18 per cent to around 30 per cent. Likewise, it accords with NSW Ports’ objective of moving three million TEU by rail by 2045.”
“ALC has long argued that building a reliable, national network of intermodal facilities is central to boosting rail’s contribution the national freight task. Moorebank will complement other intermodal facilities throughout NSW, including Aurizon’s operations at NSW Ports’ Enfield Intermodal Logistics Centre, and Pacific National’s facility at Chullora.”
“Both Moorebank Intermodal Company and Qube Holdings deserve enormous credit for their intensive efforts bringing Moorebank to fruition. The success of this intermodal facility is set to deliver transformational improvements to supply chain efficiency,” Kilgariff concluded.

Kennards renews Sydney Swans partnership

General hire equipment supplier Kennards Hire has renewed its partnership with the Sydney Swans, signing on as a ‘premier partner’ for the next three seasons.
Kennards Hire joined forces with the Sydney Swans three years ago and has now locked in its commitment as the club’s Official Trade and DIY Hire Partner until 2019.
Sydney Swans CEO and Managing Director Andrew Ireland said he’s excited to welcome a new premier partner.
“Our football club is very grateful for the support of Kennards Hire, and to have a partner want to increase their commitment is a wonderful endorsement,” Ireland said.
“Kennards Hire is a trusted brand and a family-operated company that was founded in Bathurst here in New South Wales. Our brands share great synergy and we’re proud to have Kennards as part of our Sydney Swans family.”
Kennards Hire Chief Executive Officer Angus Kennard said taking the partnership to a new level is a natural step forward.
“Kennards Hire is proud to sign on as Premium Partner with the Swans, who undoubtedly share the similar values of fairness and family,” he said.
“As brands that aim to be the best in their field, we are excited about sharing the fast-paced thrill of AFL with our staff, customers, suppliers and Swans fans over the next few years.”
 
 

© All Rights Reserved. All content published on this site is the property of Prime Creative Media. Unauthorised reproduction is prohibited

JOIN OUR NEWSLETTER

JOIN OUR NEWSLETTER
Close