I n s i d e I C H C A | J u l y 2 0 1 5 Page | 1 July 2015 About ICHCA – International Cargo Handling Coordination Association The International Cargo Handling Coordination Association (ICHCA) is an international, independent, not- for-profit organisation dedicated to improving the safety, security, sustainability, productivity and efficiency of cargo handling and goods movement by all modes and through all phases of national and international supply chains. ICHCA International’s privileged non-government organisation (NGO) status enables it to represent its members, and the cargo handling industry at large, in front of national and international agencies and regulatory bodies. Its Expert Panel provides best practice advice and publications on a wide range of practical cargo handling issues. ICHCA Australia Ltd is proud to be part of the ICHCA International Ltd global network. To access past newsletters and other useful information go to the ICHCA Australia website at www.ichca-australia.com . We also have an ICHCA international website at www.ichca.com To join ICHCA please contact Ian Lovell, Company Secretary of ICHCA Australia Ltd on [email protected]or telephone 0400 708 182. In This Issue Hiroshima Port ................................................................................................................................. 2 ICHCA Publications Directory 2015 .................................................................................................. 2 Successful ICHCA Australia Luncheon in Melbourne ....................................................................... 2 ACCC Blocks SEA SWIFT’S TOLL Takeover ........................................................................................ 6 ICHCA International News................................................................................................................ 7 ICHCA International Conference 2016 to be held in Barcelona ...................................................... 8 World Shipping Council Sets Out Box-weighing Guidelines ........................................................... 8 Issues Arising From Increased Reliance on New Technologies........................................................ 9 Southampton Solent University Study ........................................................................................... 10 Coastal Shipping Bill ....................................................................................................................... 11 Port Privatisation Plans to Become Messy .................................................................................... 12 French CMA CGM Shipping Line Ready to Start Operation in Iran ................................................ 14 TT Club Forum on Risk Management for the Transport Industry ................................................. 15 ICHCA Australia Website ................................................................................................................ 15
Transcript
I n s i d e I C H C A | J u l y 2 0 1 5 P a g e | 1
July 2015
About ICHCA – International Cargo Handling Coordination Association
The International Cargo Handling Coordination Association (ICHCA) is an international, independent, not-for-profit organisation dedicated to improving the safety, security, sustainability, productivity and efficiency of cargo handling and goods movement by all modes and through all phases of national and international supply chains. ICHCA International’s privileged non-government organisation (NGO) status enables it to represent its members, and the cargo handling industry at large, in front of national and international agencies and regulatory bodies. Its Expert Panel provides best practice advice and publications on a wide range of practical cargo handling issues. ICHCA Australia Ltd is proud to be part of the ICHCA International Ltd global network. To access past newsletters and other useful information go to the ICHCA Australia website at www.ichca-australia.com . We also have an ICHCA international website at www.ichca.com To join ICHCA please contact Ian Lovell, Company Secretary of ICHCA Australia Ltd on [email protected] or telephone 0400 708 182.
In This Issue
Hiroshima Port ................................................................................................................................. 2
I n s i d e I C H C A | J u l y 2 0 1 5 P a g e | 2
Hiroshima Port
Hiroshima Port
This article describes the remarkable development of Hiroshima Port and its contribution to the economic development of the local community, its Prefecture and nearby islands in the Inland Sea. Since reconstruction in 1948, there has been a continuing focus on improving port and terminal facilities and infrastructure, removing impediments to cargo handling and distribution productivity. Not only has this development programme been very successful, there has been active consultation with local communities and encouragement of industrial development. With a ten year strategy under development, the port is upgrading terminals, improving access for larger ships and encouraging the tourism and cruise services for the region. We are grateful to our colleagues in Japan for this encouraging story of a port planning and delivering continuing improvement in the economic wellbeing of those within its wide area of influence. David Bendall Chairman ICHCA International
John Warda Chairman ICHCA Australia
ICHCA Publications Directory 2015
The ICHCA Publications Directory 2015 is now available. During the long history of our Association, ICHCA has developed over 90 in-depth publications to inform professionals on best practice in cargo handling and related operations, and provide practical guidance on the role and requirements of various regulatory authorities
“Please note that many publications are being updated and the accompanying introduction was correct at time of publication of the corresponding publication.”
ICHCA Publications Directory 2015
Successful ICHCA Australia Luncheon in Melbourne
On Thursday 2nd of July an ICHCA Australia luncheon was held at the Stamford Plaza Hotel Melbourne, where over 70 people gathered to hear Nick Easy, CEO of the Port of Melbourne Corporation, speak of the exciting developments at Webb Dock, where a new international container terminal is being built at East Webb Dock and a large automotive terminal at West Webb Dock. The project, which has a total cost of $1.6 billion, is expected to be completed by the end of next year.
I n s i d e I C H C A | J u l y 2 0 1 5 P a g e | 3
Nick gave an excellent overview of what is currently happening at the site and stressed that community consultation and the development of barriers, which shield the working areas of the port from the residential surroundings, as well as a public viewing area at the head of the dock are vital in assuring that the project is able to proceed on time and on budget.
ICHCA Australia’s recently appointed Chairman John Warda gave a short overview of the current plans for the Australian chapter of ICHCA and thanked outgoing Chairman Tony Grant for his leadership and wished him well in his recovery from a stroke.
ICHCA International Chairman David Bendall gave an update of what is happening in the wider international cargo handling sphere and in particular alerted the audience to the guidelines for container weighing which will come into force on 1st of July 2016.
The Port of Melbourne Corporation was a generous sponsor of the luncheon.
The next ICHCA Victoria luncheon will be held in October and Maurice James, Managing Director of QUBE Holdings will be the speaker. More details will be announced soon.
I n s i d e I C H C A | J u l y 2 0 1 5 P a g e | 4
ICHCA SA – Luncheon – 19th August 2015
I n s i d e I C H C A | J u l y 2 0 1 5 P a g e | 5
I n s i d e I C H C A | J u l y 2 0 1 5 P a g e | 6
ACCC Blocks SEA SWIFT’S TOLL Takeover
It comes as no surprise that the ACCC has decided to oppose the bid by Sea Swift to take over the operations of Toll Marine Logistics. Both companies currently provide scheduled marine freight services to the Northern Territory, Far North Queensland and coastal communities including the Torres Strait Islands. They are each other's main competitors and while we would like to see Sea Swift, an Australian owned and operated company, prosper - it seems fairly clear that the loss of competition in this sector would lead to increased prices to consumers in this market.
According to ACCC Commissioner Roger Featherston, "Sea Swift and Toll Marine are the two largest suppliers of marine freight services in the NT and FNQ and, on many routes, are the only two suppliers of scheduled freight services. Over the last two years, they have been engaged in a price war with each other.
"Not only would this merger eliminate the competition between them, it would also increase the barriers to entry or expansion for other freight providers".
The anti-competitive angle is emphasised by Featherstone's assertion that, “As far as the ACCC is aware, Toll did not offer its business on the market or look for any other potential acquirer of the business or of any of the assets used in its business”.
I n s i d e I C H C A | J u l y 2 0 1 5 P a g e | 7
ICHCA International News
ISP 74 Meeting Date: 9 - 10 September Venue: TT Club, 90 Fenchurch Street, London EC3M 4ST, UK The September meeting provides a chance for the Panel to review and develop safety and good operational practice in cargo handling worldwide. Key topics on the agenda are expected to include container weighing, container lashing and securing, CTU packing, operations at the ship-shore interface and port equipment safety, among others. Lunch and refreshments will be provided. ISP74 is kindly hosted by ICHCA premium member TT Club at its London headquarters. The meeting is free to attend for ISP members. ICHCA members and qualified guests may also join as observers. Book your place for ISP 74 and/or ICHCA’s Container Weighing Seminar >
Seminar on Container Weighing Date: 11 September Venue: Holman Fenwick Willan, 65 Crutched Friars, London EC3N 2AE, UK ICHCA will also be holding a Technical Seminar on Container Weighing: Legislation to Implementation in London on 11 September. With new IMO rules on verification of container weight due to come into force in July 2016, the seminar will bring all the interested parties together to discuss how the new legislation can be implemented with minimum disruption to the container logistics chain. Among other key topics, the seminar will include the official launch of the UK’s Accredited Shipper approval scheme by the Freight Transport Association and Global Shippers Forum, and a briefing on how the UK Maritime and Coastguard Agency has approached enforcement in the UK. The seminar is timed just ahead of the 2nd meeting of IMO’s Carriage of Cargoes and Containers (CCC) sub-committee at IMO’s London HQ, where the legislation was developed. ICHCA International has been, and remains, deeply involved with IMO in developing the new legislation. The meeting is kindly hosted by new ICHCA member Holman Fenwick Willan at its London headquarters. Special rates are available for ICHCA members, plus an early bird discount runs until 11 July.
I n s i d e I C H C A | J u l y 2 0 1 5 P a g e | 8
ICHCA International Conference 2016
to be held in Barcelona
World Shipping Council Sets Out
Box-weighing Guidelines
The IMO's Maritime Safety Committee (MSC) at its 93rd session (May 2014) approved changes to the Safety of Life at Sea (SOLAS) convention regarding a mandatory container weight verification requirement on shippers. This is an effort WSC has been advocating for many years. Dangerous Goods, Solid Cargo and Containers (DSC) Sub-committee approved changes to the Safety of Life at Sea (SOLAS) convention that will require verification of container weights before loaded containers may be placed aboard ships. The DSC report was approved by the Maritime Safety Committee (MSC) in May 2014 and adopted by MSC in November 2014. The requirement making container weight verification a condition for vessel loading will become legally binding on July 1, 2016.
The full text of the applicable SOLAS regulations can be found here and the Implementing
Guidelines issued by MSC are available here.
See also a concise summary of these requirements produced by WSC.
The World Shipping Council and its member shipping companies have developed guidelines to explain
what the implementation of the regulations will require of shippers, carriers and terminal operators as of July 1, 2016.
I n s i d e I C H C A | J u l y 2 0 1 5 P a g e | 9
Issues Arising From Increased Reliance
on New Technologies
The following letter was published in Lloyd’s List Australia by one of ICHCA Australia’s Directors, warning about increased reliance on new technologies. The accompanying photo shows the author making sun observations as a young deck officer in the early 70’s.
Dear Sir,
I would like to comment on the article “An Old Lesson” which appeared in Lloyd’s List Australia on May 28 and which deals with training and development of the future transport sector workforce. I am especially referring to the accompanying photo of a young man holding a sextant.
Hopefully many of your readers still know what a sextant is and while it is no longer of such vital importance as when I went first went to sea (in 1969 at the tender age of 16 years old, so yes you can call me a grumpy old sea dog !) I would like to highlight the importance of appropriate training in view of the increased use of Information and Communications Technology (ICT) on board vessels and in the transport sector in general.
Many of you might have heard of the Volvo Ocean Race 2014-15 where seven 65 foot yachts race around the world and which is currently in its final stages. In November last year one of the yachts (Team Vestas Wind) ran aground at night under sail and at a speed of 19 knots on the Cargados Carajos Archipelago, an island group in the Indian Ocean about 200 nautical miles north-east of Mauritius, and was wrecked.
These yachts are equipped with the latest technology, including electronic charts, DGPS, satellite communications etc.; however Team Vestas still managed to run aground on a 190 square kilometres reef which had been discovered in the 16th century and is clearly marked on all nautical charts. It turned out that the navigator and the skipper had discussed the shoals, but had not increased the scale of their electronic charts large enough to see that it was a reef with some very low lying small islands and assumed they were passing over 20 meters deep water.
Luckily nobody was hurt and no damage to the environment was caused, however the yacht was virtually a write off and millions of dollars where required to retrieve and repair the yacht not to mention a loss of prestige and sponsorship money.
The above incident demonstrated that even at a very high professional level it can be dangerous to rely too much on technology and a generous dose of common sense as well as appropriate training is invaluable.
Since we are looking into the future towards self-driving cars on our roads and unmanned vessels sailing around the globe it is important to ensure that these systems are fool proof. I suppose one could say that it was human error that caused the above incident. If the yacht had been steered solely by a computer it probably wouldn’t have happened.
Many Lloyd’s List readers would argue that ICT has become so ingrained in our industry and is being used in our daily lives that it is only a natural progression to go towards increased reliance on this technology and that it enables us to work smarter.
I n s i d e I C H C A | J u l y 2 0 1 5 P a g e | 10
I do agree, but would like to stress that some basic grounding and training in the principles of how our industry works, combined with a good dose of common sense and good people skills, are still important. Just relying blindly on what is dished up to you from your computer screen or from the voice of the GPS in your car can lead to some serious mishaps.
Peter van Duyn Master Mariner and Maritime Logistics Expert, Institute for Supply Chain and Logistics at Victoria University
Southampton Solent University Study
Southampton Solent University has asked ICHCA Australia to participate in a global study about the public’s perception of the shipping industry The research aim is to examine the causes contributing to the low public profile of the shipping industry and the extent of ‘sea blindness’. The research findings will help inform strategies to improve ‘sea vision’ and ultimately increase uptake in maritime careers to help meet the current skill’s gap.
The university has already begun this research in the UK and now seek to establish the extent of public awareness of the shipping industry internationally across 10 different countries, Australia being one of these.
Some ICHCA Australia members have already agreed to take part but if you would also like to participate see contact details below to get your copy of the questionnaire. The outcome of the research will be made available later in the year.
Emma Broadhurst
Graduate Administrative Assistant | Maritime and Technology Faculty Southampton Solent University | East Park Terrace | Southampton SO14 0YN T: 023 8201 6780 | E: [email protected] | www.solent.ac.uk
I n s i d e I C H C A | J u l y 2 0 1 5 P a g e | 11
Coastal Shipping Bill
Recently, Australia’s Deputy Prime Minister for Infrastructure and Regional Development, the Hon Warren Truss MP, announced major changes to the coastal shipping regime in Australia.
In recognition of the abject failure of The Coastal Trading (Revitalising Australian Shipping Act) 2012 (Cth) as introduced by the previous Government, the legislation will be significantly amended in an effort to encourage and seek to rejuvenate coastal shipping in Australia. The new regime is intended to deregulate the coastal shipping permit system while at the same time preserve the application of Australian labour laws, maritime safety standards and environmental provisions.
The proposed amendments come in response to the dramatic decline in coastal shipping in Australia. As a percentage of overall freight in Australia, coastal shipping has been in decline even though total freight has been increasing. By 2030, Australia's overall freight task is expected to grow by 80%, but coastal shipping was only forecast to increase by 15% on the current model. Currently only 15 Australian trading vessels continue to operate a general licence and only eight operate with a transitional licence.
Recognising that Australian maritime exports account for 99% of exports and Australian ports manage more than AUD 400 billion worth of international cargo, the Deputy PM emphasised that "coastal voyages by international and domestic ships should be growing" and the current system, which imposes a number of unnecessary and costly reporting requirements, must be overhauled. Under the new system, the Government will introduce a single permit system for coastal shipping, replacing the existing tiered licence system. A "Coastal Shipping Permit" will provide unrestricted access to coastal shipping for all vessels (Australian and foreign) for up to 12 months.
Vessel owners, or those responsible for the "management" of the vessel, will be eligible to apply for a shipping permit for their vessel. Applications must include details evidencing proof of ownership or responsibility, a copy of the vessel's registration certificate and an application fee. Once granted, a permit holder will be allowed to transfer the permit if the ownership or management of the vessel changes during a 12 month permit period.
Under the new regime, reporting obligations will be less onerous with only two reports required each year, one after each six month period. There will be no need to seek variations to cargo types, volumes carried, or travel dates anticipated for each voyage. This compares with the current regime which requires owners to apply for a permit for each voyage that is likely to happen, report on what they anticipate doing and then again report on what actually happened.
The amendments will also encourage vessels being dry-docked in Australia. Permit holders will not be subject to the importation regime under the Customs Act 1901 (Cth) and will therefore have greater flexibility to undergo maintenance in Australia. Vessels undertaking the movement of liquid fuel products from offshore various installations like FPSOs and FSUs, including from offshore platforms, will also benefit from these changes and will not require importation.
Permit holders on vessels undertaking more than 183 days of coastal trading (to be defined) in a permit period will be required to have two senior Australian crew on board and to pay all crew an Australian wage. However, foreign vessels trading for less than 183 days will be subject to existing international on board arrangements.
Already this aspect of the proposal has faced criticism from trade unions, who claim that the new regime will discourage shipowners from basing their ships in Australia in order for them to take advantage of lower pay levels and less stringent regulations around working conditions.
I n s i d e I C H C A | J u l y 2 0 1 5 P a g e | 12
Despite these objections the Government continues to assert that the amendments will decrease regulatory costs, increase the volume of Australian coastal shipping, decrease congestion of road and rail infrastructure, and inevitably increase jobs and enhance the competitiveness of the Australian maritime sector
The new Coastal Shipping Bill is expected to be introduced into the Australian Parliament later this year and the Government has stated its commitment to implement the new regime as soon as practicable after the legislation is passed. A transition period is anticipated whereby application for permits can be made prior to the commencement of the permit system and voyages that have already commenced under a licence issued under the current system will continue until the voyage is completed.
Port Privatisation Plans to Become Messy
Recent plans to privatise a number of Australian ports have become very messy. In Victoria both sides of government were committed to privatising the Port of Melbourne Corporation (PoMC), intending to use the proceeds for infrastructure projects enabling them to qualify for the Treasurer Joe Hockey’s 15% recycling assets contribution scheme.
But the Opposition has now said it will oppose Labor’s legislation, which authorises the transfer of port assets to a new lease holder for 50 years, and refer it to a select committee inquiry in the Upper House, supported by the Greens. The move potentially leaves a multi-billion dollar hole in the state budget.
In an attempt to increase the sale price, the PoMC has served a rent review notice to one of the major lease holders in the port, container stevedore DP World. Chairman of the Australian Consumer and Competition Council (ACCC) Rod Sims, an old foe of the stevedores who has accused them of running a cosy duopoly, put his hat in the ring by suggesting that oversight of port pricing might be necessary. An independent valuer has been appointed to review the proposed rent increase.
I n s i d e I C H C A | J u l y 2 0 1 5 P a g e | 13
The Tasmanian government which relies heavily on the port of Melbourne for its flow of import and export cargo has struck a deal with Victoria to would protect Tasmanian port users from planned fee rises, after complaining to both the Federal and Victorian governments.
The price hike would undermine its competitiveness in local and global markets, especially since in April the state received an extra $200 million to extend freight subsidies to northbound goods from the Federal government.
Encouraged by comments from the ACCC chairman, one of the stakeholders in the Port of Newcastle in NSW, multinational Glencore, has applied to the National Competition Council to force ACCC oversight of pricing in the port. The Port of Newcastle was recently privatised under a 98 year lease. In January this year the port pushed access prices up by an average of 40%.
The Darwin Port Corporation has also been slated for privatisation with the Northern Territory government recently releasing the sale/long term lease documents to the market. In an apparent attempt to increase its sale price, the Corporation announced in December 2014 very significant increases in port fees, which include a new fee of $2,000 per ship call, an increase of 15% to daily berth rates, and a 30% increase in wharfage rates.
The Western Australia government, whose revenue stream has been severely hit by the slowdown in the mining industry, announced in its recent budget that the Port of Fremantle has put out the “For Sale” sign in an attempt to raise additional funds. There is no word yet from Fremantle Ports on potential price increases, but watch this space.
Utah Point, an iron ore port facility in Port Hedland in the far north of Western Australia, which was also earmarked to be sold, has recently become less attractive due to the fact that the mining companies which ship iron ore through the port, and make up 90% of its revenue, are struggling amid a sustained low in global iron ore prices.
Overall, it’s a messy picture which, combined with plans in a number of states to open additional ports within the next 15 to 20 years, will make it hard for sellers and bidders to determine a fair price for these attractive infrastructure assets, under what conditions a competing port may be established, and whether compensation should be paid to incumbents.
Sadly all this political posturing could result in importers and exporters paying higher prices for the use of port facilities and could leave taxpayers footing the bill for potential compensation payments.
I n s i d e I C H C A | J u l y 2 0 1 5 P a g e | 14
French CMA CGM Shipping Line Ready to Start
Operation in Iran
TEHRAN - The Marseille-based French company, CMA CGM S.A, which is the world’s third-largest shipping line in terms of container vessel capacity, has announced readiness to start operation in Iran on August 6, according to an official with the Islamic Republic of Iran Shipping Lines (IRISL). The French liner’s first priority is establishment of a shipping route to Iran and then make investment in the Islamic Republic’s maritime industry and development of ports, the Tasnim News Agency reported on Sunday quoting Jalil Eslami, the deputy director of IRISL for the ports affairs, as saying. The official put the average annual capacity of container loading at 150 million tons in Iran’s ports over the recent years and said the real capacity is 200 million tons. A final agreement was reached on Iran's nuclear program in the Austrian city of Vienna on July 24 after some 22 months of talks between Iran and the P5+1 (five permanent members of the UN Security Council plus Germany). International shipping lines are stepping up port calls to Iran as the country’s massive maritime trade sector is emerging from sanctions. U.S. sanctions barred IRISL fleet of about 170 vessels from sailing in international waters. They also prohibited international shipping companies from calling on Iranian ports. Iranian Transport Minister Abbas Akhoundi, however, said earlier this month that ships from eight major international transportation companies had started to dock at Iran’s southern ports. Head of Iran’s Ports and Maritime Organization (PMO) Mohammad Saeid-Nejad said he expected a surge in activities in the country’s shipping sector. “Fortunately, the capabilities of Iranian maritime industries have significantly increased over the past years,” Saeid-Nejad said.
I n s i d e I C H C A | J u l y 2 0 1 5 P a g e | 15
TT Club Forum on Risk Management
for the Transport Industry
Invitation
Tuesday 18 August 2015
TT Club would like to invite you to join our FREE seminar:
Risk Management for the Transport Industry
To be held at: Hilton South Wharf: 2 Convention Centre Place
South Wharf, Melbourne
on Tuesday 18 August, 5.15pm - 6:30pm
followed by light refreshments
This year we will be discussing: Autopsy of a Personal Injury Claim: How to best manage long tail claims We will be looking at bodily injury claims from incident to settlement and how the passage of time poses challenges in terms of effective management. What are we weighing for? The Realities of Container Gross Mass Verification The Solas amendment relating to container gross mass verification will come into force on July 1st 2016. Identifying the
processes by which the verification will take place is a work in progress in Australia. The entire supply chain will be impacted by
National Secretary: Ian Lovell 9 Durham St, Henley Beach SA 5022 Tel: 0400 708 182 E-mail [email protected]
State Co-ordinators State Chairs New South Wales: James Strang Strang International Pty. Ltd. Suite 4.05, 247 Coward Street, Mascot NSW 2020 Tel: (02) 9669 1099 Fax: (02) 9317 4514 Email: [email protected]
South Australia: Neil Murphy SA Freight Council, c/o Flinders Ports 296 St Vincent Street Port Adelaide SA 5015 Tel: 08 8447 0688 Email: [email protected]
Victoria: Peter van Duyn Institute for Supply Chain and Logistics Victoria University, PO Box 14428, Melbourne VIC 8001 Phone +61 3 9919 6264 Mobile +61 4 1937 0332 Email: [email protected]
ICHCA AUSTRALIA LIMITED (IAL) PRIVACY POLICY
IAL’s Privacy Policy Details are available by contacting the National Secretary, Ian Lovell, on e-mail [email protected] or telephone 0400 708 182.
Our Contact with You
If you do not wish to receive further copies of this newsletter please advise [email protected] and the distribution will be cancelled. If you wish to have it sent to other people in your organisation or contacts in the cargo handling industry also please advise us.
