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Tasmanian

Freight &

Logistics

Forum6 July 2018

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SeaRoad• SeaRoad Shipping

• SeaRoad Logistics

Kelly Group of Companies

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• SeaRoad is a privately owned Australian integrated transport and logistics service provider

specialising in Bass Strait shipping and logistics

• We are located in the transport hub port of Devonport

• SeaRoad’s services characteristics are its purpose-built RoRo shipping vessels and a logistics

infrastructure which are alongside our berths optimally suited to Bass Strait shipping

requirements

• SeaRoad’s shipping service is between Melbourne and Devonport with vessels, Searoad

Mersey II and Searoad Tamar

• SeaRoad’s logistics services provide an end-to-end freight logistics service to and from

Tasmania

• SeaRoad’s service offering is ideally suited to meet the markets along the East Coast of

mainland Australia

OUR PRODUCT

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Our future is here..

BASS STRAIT

COASTAL FREIGHT MARKET

Current Status & Trends

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OUR ENVIRONMENT

• Freight Volumes to and from Tasmania are carried by:-

▪ Coastal shipping operators

▪ International shipping operators

• Main coastal operators all provide a 6/7 day overnight service between Port

Melbourne and Northern Tasmania – Devonport or Burnie

• The current 3 coastal operators have been the only constant over the last 30+

years

• Main coastal operators are represented by:-

▪ Toll Shipping

▪ TT-Line

▪ SeaRoad Shipping

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COASTAL VOLUMES

• Bass Strait shipping volumes growth is being lead by an increase in retail,

agriculture and aquaculture products

• Recent expansion in the salmon industry and investment in fruit and berries are

examples of time-sensitive freight sectors experiencing significant growth

• Severe climate events (drought & floods) on mainland Australia is a driver of

continued agriculture investment in Tasmania

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COASTAL VOLUMES

• Construction activity is expected to grow with Government infrastructure

spending

• Major commodities transported across Bass Strait include agricultural

products, retail goods, industrial products with the increased movement of Fast

Moving Consumer Goods (FMCG) for the retail sector are all key drivers

• Internet shopping is another significant driver increasing LCL freight volumes

FMCG Fast Moving Consumer Goods

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VOLUME TREND

• Unconstrained outlook for Bass Strait shipping volumes remains solid

• Annual growth is predicted of between 2 and 5%

• We are predicting market growth will continue at this rate in the short to medium

term through to 2030

• 2017/18 is shaping as an outstanding year and on track to deliver a growth rate

of 6.0% plus

• In recent times trailer volumes on Bass Strait have grown at a faster rate than

containers

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Future Planning &

Constraints

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BLUE SKIES

• All 3 coastal operators are planning for increased tonnage – capacity

▪ Toll Shipping – Circa 2019

▪ SeaRoad – Circa 2020

▪ TT-Line – Circa 2021

• Replacement tonnage will significantly increase shipping capacity

• Tasmania’s increased connectivity with the mainland and beyond will

promote further confidence for additional investment in Tasmania

• Increased investment in tonnage will drive increased freight volumes

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IT JUST IS…

• Tasmania is entering a golden era in shipping however:-

▪ Shipping constraints will occur from time to time:-

❑ Christmas will always be in December

❑ Easter will always be in March/April

▪ Tasmanian’s agriculture and aquaculture volumes will always be at

seasonal highs between January and May

• Collaborative approach is the practical solution to these annual spikes

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PINCH POINT

• Coastal operators are investing significant dollars in the trade with new and

innovative tonnage

• Shipping terminals will face immediate operational constraints with their

facilities required to manage increased throughput

• Demand on freight forwarders and logistic providers to clear shipping

terminals will be a priority

• Clearance delays will impact shipping efficiencies and customer service

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STICKY POINT

• Terminal congestion will drive inefficiency costs:

▪ Truck Queuing

▪ Storage, Detention, Demurrage costs

• Port costs are significant cost drivers on shipping

• The cost of leasing shipping terminals is another significant cost driver

• Port Charges & Port Infrastructure costs do impact sea freight rates

• Port owners gain from increased tonnage and increased volumes

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CUSTOMER FOCUS

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CHALLENGE

▪ As we continue to fight work – life balances

▪ Society continues to be time poor

▪ Continuous demand for shorter logistical chains

▪ Subsequently characteristics of the market will evolve

▪ Coastal shipping will need to evolve to meet the market

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BEYOND TODAY

• Investment in new vessels is externally tangible

• Internal investment is a significant driver for future planning:-

▪ Investment in systems

▪ Investment in people

▪ Investment in safety

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SHIPS ARE BEAUTIFUL

▪ Entering a period of increased shipping capacity investment in

customer service will be a point of difference

▪ Customers will continually demand a more reliable and flexible

transportation service

▪ Reliable and quality customer service will underpin the transport

solution

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QUEST

▪ Development of quality systems and processes to ensure a

seamless customer experience from booking to delivery

▪ Development of innovative ideas to deliver greater efficiencies

▪ Development of flexible solutions to better service the customer

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Our future is here...

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HAND IN GLOVE• Internal Investment will be complimented by investment in a

new vessel, terminal infrastructure and equipment

• New vessel 2020/21 to compliment Searoad Mersey II

• Terminal infrastructure to improve efficiencies and freight

availability

• Equipment driven by innovation that will further drive

efficiencies and increase reliability

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Our future is here..

Thank You