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// 1// NOVEMBER / DECEMBER 2015
NOVEMBER/DECEMBER 2015
PAGE 6
PAGE 12 PAGE 14 PAGES 20-27
PAGE 8
PAGE 10
EXPORT OPPORTUNITIES ABOUND IN JAPAN
SCOTTISH PACIFIC’S TOP TIPS FOR NEW EXPORTERS
SECRETS TO TRADING IN THE MIDDLE EAST
TRADING WITH THE FOUR ASIAN TIGERS
AUSSIE MADE BRANDING THE KEY IN TPP
SPECIAL FEATUREFINDING THE BEST FREIGHT DEALS
// 2// NOVEMBER / DECEMBER 2015
a smarter way to trade
From the editor
Exporters throughout Australia would agree that 2015 has been a remarkable year.
Not only have we seen a steady fall in the stubbornly high Australian dollar, but now
also Australia is competing on a level playing field with most of its biggest trading partners.
As this year draws to a close we must congratulate the federal government on its achievements for Australian exporters.
It’s fair to say the Abbott Government didn’t set the world alight with its domestic policies, but its achievements globally have been nothing short of outstanding.
And Trade Minister Andrew Robb and Foreign Minister Julie Bishop can take much of the credit.
They have achieved more for exporters in 18 months than successive governments achieved in nearly two decades.
Australian exporters will now benefit from signed free trade agreements with our three biggest Asian trading partners – Japan, South Korea and China.
And for good measure, the Trans-Pacific Partnership Agreement concluded earlier this year after eight years of painstaking negotiations, has added icing to the export cake.
Mr Robb described the TPP as “the biggest global trade deal in 20 years.”
Though we may not see the real fruits of this deal for several years, it is a major coup by any measure.
Collectively, the trade agreements will unlock new opportunities for Australian businesses in key global markets.
They will help drive growth in Australia’s agricultural and services sectors including education, tourism, financial, legal, telecommunications and medical services.
And most importantly they will help fill the huge gap in the Australian economy left after the mining and resources boom.
Australian exporters can now enter 2016 with renewed hope and optimism.
On behalf of the team at Dynamic Export we wish our readers a very happy and prosperous New Year.
TIM MICHAELEDITOR
@dynamicexport
Director and National Sales ManagerJulie [email protected]
OUR TEAM
Think Positive Pty Ltd cannot be held liable for any person(s), company or business acting upon or using the information provided in this e-magazine in any way. Information and content in Dynamic Export e-Magazine is provided to the best of our knowledge. We advise that you should seek independent professional advice to verify that all information is accurate and correct.
EditorTim [email protected]
ProductionVeronica Avant
IT ManagerRob Fearn
ContributorsMichael Holloway,Kim Mauch, Craig Michie , Benjamin Sun,Andrew Watson, Nada Young
Advertising enquiries: [email protected]
www.dynamicexport.com.au
Editorial submissions: [email protected]
Published by:Think Positive Pty LtdPO Box 221Waverley NSW 2024 Australia
editor@
dynamicexport.
com.au
// 3// NOVEMBER / DECEMBER 2015
More Australian SMEs looking to grow business overseas: survey
10-11
12
13
14-15
16-17
18-19
20-27
28-29
MIDDLE EAST
FEATURE
EMDG
AUSTRALIAN MADE
THINK CHINA
CHINA FTA
FREIGHT
TRAVEL
Trade opportunities for Australian exporters
Trading with the Four Asian Tigers
Export Marketing Development Grants Scheme turns 40
Aussie Made branding is key under TPP trade pact
How to cash in on China’s biggest shopping days
Trade agreement finally gets the green light
Why it pays to shop around for the best freight deals
Qatar Airways to fly direct to Sydney
NEWS
NEWS
NEWS3-5
6-9
30-31
BUSINESS & FINANCE
Export opportunities abound in Japan
WHAT’S ON
A steadily falling Australian dollar
and improved export conditions
is prompting more businesses to
expand into offshore markets, according
to a major business survey.
The Scottish Pacific SME Growth
Index revealed 7.5% of respondents
are preparing to expand their business
overseas in the next six months, compared
with 5.6% last year.
This represents a 33.9 percent increase,
driven mainly by the weaker Australian
dollar and increasing export demand.
And 13.2 percent of respondents
said they are planning to expand
their businesses domestically and
internationally in the same period –
compared with 11.6 percent the previous
year.
However, overall Australian SMEs are
slightly less confident about growth
prospects, the survey found.
Also, they show a greater willingness
to look beyond their main bank to fund
growth compared to this time last year.
The Scottish Pacific SME Growth Index
indicates a 35 percent jump in the number
of SMEs planning to go beyond their
main relationship bank and use specialist
non-bank providers or other banks to
support their business growth in the next
six months.
The September 2015 Index, the third in
a twice-yearly series, surveyed a broad
range of SMEs with annual turnover of
$1m-$20m.
National SME working capital specialist
Scottish Pacific commissioned East &
Partners to interview the senior managers
(mostly
owners,
CEOs and
CFOs) of 1,257
SMEs around
Australia.
Scottish
Pacific
CEO Peter
Langham said
more small business owners forecast
short-term revenue decline – 16.8
percent of owners, up from 13.2 percent
in August 2014. Their predicted average
revenue decline rose to 4.6 percent
from 3.9 percent last year.
Mr Langham said cash flow is
emerging as a significant hurdle with
half of all growth SMEs (50.7 percent)
saying it is a key challenge.
It was notable that 15.1 percent of
growth SMEs said they would fund
growth by using specialist non-bank
providers and funders other than their
main bank (it was 11.2 percent a year
ago).
“It’s important that small business
owners are aware of the range of
funding options available to them to
support their growth. If the banks say
no, or if they don’t like the conditions
placed on them, there are many other
viable options including debtor finance
and P2P lending,” Mr Langham said. •••
Scottish Pacific Business Finance Pty Ltd provides working capital solutions to SMEs, clients in a broad range of industries including transport, manufacturing, wholesale, import, labour hire and printing. www.scottishpacific.com
SPECIAL FEATURE
// 4// NOVEMBER / DECEMBER 2015
NEWS
TPP Trade Pact: What it means
for Australian exportersTIM MICHAEL
It’s finally a done deal.
After eight years of painstaking negotiations the
historic Trans-Pacific Partnership (TPP) Agreement has
been successfully concluded.
And Australian exporters will be the big winners with
new trade and investment opportunities between the 12
countries involved in the new deal.
At the conclusion of negotiations in the US last month
Trade Minister Andrew Robb said the TPP will enhance our
competitiveness, promote growth, job creation and higher
living standards.
Mr Robb described the TPP as “the biggest global trade
deal in 20 years.”
“The TPP will establish a more seamless trade and
investment environment across 12 countries which
represent around 40 per cent of global GDP,” he said.
Last year, one third of Australia’s total goods and
services exports – worth $109 billion – went to TPP
countries. They include Brunei Darussalam, Canada, Chile,
Japan, Malaysia, Mexico, Peru, New Zealand, Singapore,
// 5// NOVEMBER / DECEMBER 2015
NEWS
the US and Vietnam.
And TPP countries account for 24 per cent of the world’s
trade in services.
Australia’s services exports to TPP countries were
worth $20 billion in 2014 – almost 35 per cent of our total
services exports.
The TPP comes just months after landmark trade deals
with Korea, Japan and China.
Each country involved will need to pass and ratify
associated legislation for the partnership to begin. This
process is expected to take several months.
By setting common international trade and investment
standards between member countries, the TPP will make
doing business across the region easier. It will help to
reduce red tape and business costs.
It will also slash barriers to Australian goods exports,
services and investment and eliminate 98 per cent of all
tariffs across everything from beef, dairy, wine, sugar, rice,
horticulture and seafood through to manufactured goods,
resources and energy.
The TPP includes rules to make country-of-origin
labelling for products clearer, and document the supply
chain if key steps are conducted in other countries.
Australian cane growers will be huge beneficiaries.
The TPP will increase market access for Australian
sugar into the United States for the first time in 20 years –
effectively doubling Australia’s entitlements.
Australia will have an additional quota of 65,000 tonnes
base allocation, as well as a 23 per cent share of additional
allocations into the US market – triple the previous
amount.
The agreement significantly liberalizes beef exports to
Japan, and eliminates tariffs for beef into Mexico, Canada
and Peru.
Australian services will also be given a big boost under
the new agreement.
This includes education, professional services, transport
and financial services.
Australia’s world-class Mining Equipment, Technology
and Services (METS) and oilfield services sectors in
countries like Vietnam, Malaysia, Mexico, Chile and Peru
will also gain strong benefits.
The TPP’s new rules on state-owned enterprises (SOEs)
will help Australian businesses to compete on a more
equal footing with government-owned commercial
enterprises in TPP markets and ensure that SOEs do not
unjustifiably discriminate against Australian suppliers of
goods and services.
In regard to Intellectual Property, the TPP will not require
any changes to Australia’s patent system and copyright
regime – including biologic medicines – which had been a
major sticking point.
The government has delivered on its promise not to
change Australia’s existing five years of data protection for
biologic medicines or other key health issues, including
the Pharmaceutical Benefits Scheme (PBS).
Mr Robb said this issue had been a “deal-breaker” for
Australia. It is understood a compromise was found shortly
before the final agreement was sealed.
Under the TPP, state-of-the-art e-commerce provisions
will pave the way for a more liberal cross border
environment for the flow and storage of data. It will
include appropriate consumer protections, while retaining
the right of governments to regulate in the public interest.
And access will be improved for small and medium-
sized enterprises (SMEs) to vital global value chains.
Also, the TPP encourages paperless trading, making
customs and export delivery more effective and efficient.
For investment, the TPP will create new opportunities
and provide a more predictable and transparent
regulatory environment.
Australian investment in TPP countries has more than
doubled in the last decade to reach $868 billion in 2014, a
rise of 16 per cent over the previous year. This represents
45 per cent of all outward investment.
Investment in Australia from TPP countries more than
doubled in the last decade to reach $1.1 billion in 2014,
a rise of 10 per cent over the previous year. Investment
from TPP countries is 40 per cent of all foreign investment
in Australia.
While one of the Australia’s largest trading partners,
China, is not involved in the deal, several other countries
have indicated they are hoping to be covered in the new
system of trade rules. This includes South Korea, the
Philippines, Taiwan and Colombia.
The agreement’s open architecture allows for other
members to join in the future. •••
For more information visit: http://dfat.gov.au/trade/agreements/tpp/
// 6// NOVEMBER / DECEMBER 2015
Export opportunities
abound in JapanANDREW WATSON
Australia has a strong relationship with Japan,
providing a solid foundation for Australian SME
exporters seeking to enter the Japanese market.
For SME exporters looking to do business in Japan, it is
important to consider the potential barriers that may affect
them entering this market, to ensure these factors do not
act as a barrier to success.
Japan’s population of approximately 127 million makes it
one of the world’s largest consumer markets.
High levels of disposable income and demand for
premium, high-end goods and services provide a number
FINANCE & BUSINESS
‘A number of great opportunities for Australian exporters’
of great opportunities for Australian exporters.
Mining, agriculture and services all have strong markets
in Japan, representing numerous export opportunities for
Australian exporters in these industries.
Japan and Australia’s bilateral economic relationship
was further strengthened by the signing of the Japan
Australia Economic Partnership Agreement (JAEPA) in July
2014, which provides benefits for Australian exporters on
entering the Japanese market.
Once JAEPA has been implemented in full, 97 per cent of
Australian exports to Japan will be duty free.
// 7// NOVEMBER / DECEMBER 2015
FINANCE & BUSINESS
This will make a significant difference to resources, energy and manufacturing exports,
which will all be duty free on entry to the Japanese market. Agricultural industries such
as beef, fruit and vegetables will also receive gradual tariff reductions.
JAEPA will also make it easier for Australian exporters to compete on a cost perspective
with multinational players and local businesses in Japan.
Japan’s business climate is generally on par with most other advanced economies.
There are, however, some notable differences to operating in the Japanese market
compared to the Australian market, which Australian businesses should be aware of.
One such barrier is the language and culture. English is not widely spoken in business
in Japan and therefore most Australian SMEs will find they need to use an interpreter
when meeting potential customers and partners.
A second area of potential difficulty is local regulation affecting foreign firms. For
example, paying tax can be significantly harder in Japan relative to other OECD nations.
Seeking the advice of a local accountant or tax adviser can help Australian SMEs to
understand the intricacies of local tax law.
Being aware of these and other potential barriers to doing business in Japan will ensure
Australian SME exporters are well-positioned to take advantage of the many exciting
opportunities available in the Japanese market. •••
Andrew Watson is Executive Director, Export Finance, Eficwww.efic.gov.au
ANDREW WATSON
// 8// NOVEMBER / DECEMBER 2015
FINANCE & BUSINESS
Q&A Ask an expert:
Increasingly SMEs are realising there is a huge opportunity to market their goods and services beyond Australian borders, but the major challenge for new exporters is where to begin. E more working capital, and without the proper research exporters can unknowingly expose themselves to unnecessary risks. Dynamic Export spoke to Craig Michie,
ME C answer some of the most common questions new exporters should ask:
Scottish Pacific’s top tips for new exporters
// 9// NOVEMBER / DECEMBER 2015
FINANCE & BUSINESS
Scottish Pacific Business Finance provides working capital solutions to SMEs, offering the broadest range of trade and debtor finance solutions in Australasia. With more than 1000 clients in industries including transport, manufacturing, wholesale, import, labour hire and printing, Scottish Pacific handles more than $6 billion of invoices each year, providing funding lines exceeding $500 million. Established in 1988, Scottish Pacific has full operations centres in Sydney, Melbourne, Perth, Brisbane, Auckland and China.
www.scottishpacific.com
1. I have an order from an overseas customer, but I’ve
never sold overseas before, what should I do?
Craig Michie: The starting point is to understand the
terms of the transaction. You need to know when you will
be paid and what your responsibilities in the transaction
will be (See INCOTERMs below). You should also talk to a
freight forwarder, who can give guidance on transport and
logistics.
2. What are INCOTERMS and what impact do these have?
CM: INCOTERMS are globally-recognised rules which
govern terms of international trade, and are issued by
the International Chamber of Commerce. Put simply,
an INCOTERM defines which costs the buyer and seller
are each responsible for, and at which point risk and
responsibility in the shipment passes from seller to buyer.
Amongst other things it determines who should carry
the insurance for goods in transit. See our website for a
glossary of common terms. http://www.sptradeline.com/
au/what-is-trade-finance/incoterms
3. I have a major order from one of my export customers,
but I don’t have the working capital to fill it; who can assist
me?
CM: The Federal Government offers assistance to
exporters via their export credit agency Efic. Efic has
historically worked with the major banks but recently
Scottish Pacific Business Finance became the only non-
bank approved by Efic to assist with funding SME export
transactions. Scottish Pacific’s Export Working Capital
Finance facility is supported by an Efic guarantee in order to
deliver short-term pre-shipment funding where a business
has an order from an overseas customer.
4. I sell to overseas customers and receive payment
before shipping, but they keep asking me for trading terms.
How can I cover the cash flow gap in my business?
CM: Our Export Finance facility provides funding against
export invoices. You can receive up to 80 percent of the
invoice value once it is submitted to us for funding. This
would normally happen once the goods are shipped,
meaning the exporter will not have to wait until the
customer receives the goods to get paid.
5. My overseas customer wants credit terms – how can I
find out if they are a safe risk?
CM: Always carry out your own credit reference checks
and perhaps consider credit insurance. Exporters should
consider how to collect a debt in the event of a default. As
part of the approval process for Export Finance, Scottish
Pacific performs a number of checks (including credit
reports) on potential overseas customers and will provide
an appropriate credit limit.
Unfortunately Australian exporters can face a geographic
disadvantage, particularly those seeking to access lucrative
North American and European markets.
Providing terms to customers can remove this disadvantage,
however the impact on cash flow can be significant. An
Export Finance facility can be the answer to maximising
potential and unlocking the global marketplace. •••
// 10// NOVEMBER / DECEMBER 2015
FEATURE
Identifying new trade
opportunities for
Australian exporters
in the Middle East
Trade Commissioners and Ambassadors based in the Middle East have participated in a series of national seminars across Australia to explain the growing export opportunities with Gulf countries.
The MENA Connection Seminars 2015
conducted by Austrade, together with
the Department of Foreign Affairs and
Trade, were held across Australia’s capital
cities between October 26 and November 6.
Gerard Seeber, Austrade Senior Trade
Commissioner and Consul General based
in Dubai, said bilateral relations with the
countries of the Middle East and North Africa
are multi-faceted and growing rapidly.
“Australia exports a range of products to
the region, much of it linked to its unique
geographic and demographic conditions,”
said Mr Seeber.
“There are numerous opportunities for
Australian business, particularly across key
sectors of food, agriculture, healthcare and
education and the seminars aim to explain
these.”
Australian merchandise trade to the Middle
East and North Africa region was $14.7 billion
in 2014.
There are already more than 30,000
Australians living in the region and about 450
Australian companies have operations there.
“Despite the instability in the Middle East,
there are good reasons why the commercial
outlook is promising, especially with Gulf
Cooperation Council (GCC) countries,” said Mr
Seeber.
“Dubai, located in the UAE, is not only the
Middle East’s main centre of trade and a
safe haven for business and investment, but
has also become one of the world’s great
commercial and logistical hubs.
“The city is a gateway to markets in the
Middle East, Africa and South Asia, one that
is increasingly attracting the attention of
Australian businesses.
“Given the region’s scarce water resources
and arid landmass, food exports to the Middle
Spreading the word … Gerard Seeber, Austrade’s Senior Trade Commissioner and Consul General for Dubai
GERARD SEEBER
// 11// NOVEMBER / DECEMBER 2015
FEATURE
East have been a major source of success
for Australian exporters, especially for meat,
livestock and grains,” he said.
The UAE was Australia’s 15th largest export
market in 2014 and exports reached $3.7
billion in 2014, growing by 15.5 per cent.
Demographic pressures and changes in
lifestyle are also offering opportunities in
health care and tourism.
A growing middle class with a higher
disposable income, compulsory health
insurance and growing problems such as
diabetes is driving demand for better health
care.
This is creating the need for new medical
infrastructure to make up for shortfalls in
hospital beds.
“In the UAE, for instance, there is an
estimated shortfall of 2,000 beds while in
Kuwait that figure rises to 5,000 beds,” said Mr
Seeber.
Saudi Arabia, Australia’s second largest
trading partner in the Middle East, offers
significant potential for economic ties to grow,
given areas of complementarity in agriculture,
education, healthcare and construction.
“Saudi Arabia is a substantial market for
dairy products, vehicle parts and accessories,
as well as, a growing market for fresh
vegetables, refined metals and information
communications technology products,” said
Mr Seeber.
Saudi Arabia is also the largest producer
of gold in the Middle East and has large
reserves of phosphate, bauxite and tantalum
making it attractive to miners. And Morocco
has 70 per cent of the world’s phosphate
resources.
The UAE is a hub for Australian mining
companies and providers of Mining
Equipment, Technology and Services (METS).
Australian companies are also active in the
GCC rail network, worth about US$200 billion
investment
in freight and passenger rail planned over
the next six years.
The planned 2,200km rail line connecting
the GCC states has yielded solid contracts for
Australian firms and many more are on the
horizon.
Although instability in the region and the
impact of falling oil prices has complicated
the business outlook, the UAE itself is
growing at about 3 per cent a year and its
reputation as a safe haven is still strong. •••
To learn more about the business opportunities in the Middle East contact Austrade on 13 28 78 or
email [email protected].
‘There are good reasons why the commercial outlook is promising’
// 12// NOVEMBER / DECEMBER 2015
FINANCE & BUSINESS
Price is right for trading
with the Four Asian TigersThe plummeting Australian dollar is good news for the Food and Beverage (F&B) sector, which has rapidly become much more competitive in the global market place.
Nada Young is Asia Market Director, Incite, an export development agency for food and beverage companies trading with Asia. Contact: [email protected]
www.exportincite.com
Nada Young
This is especially so in the markets
of South Korea, Singapore, Hong
Kong and Taiwan, where price is
king. Commonly referred to as the Four
Asian Tigers, these markets have shown
impressive economic growth with few
barriers to entry when compared to
their neighbours.
In this part of the world imported
goods are often criticised for their lofty
prices. I speak with F&B distributors
across Asia on a daily basis and I’ve
lost count of the number of times
I’ve heard them praise the quality of
imported produce only to bemoan the
pricing and ultimately turn down an
opportunity.
With a significantly more favourable
foreign exchange (FX) rate, the value
proposition is a lot more attractive.
Profit margin expectations in South
Korea, Hong Kong, Taiwan and
Singapore are high. Most distributors
demand at least 25%-35% gross profit
(GP) and the leading players will often
treat marketing and logistical costs
such as warehousing and handling as
separate margins, not to be extracted
from GP.
When the price build is challenged
the response is predictable – rising
operational costs for such things as
cold storage and manpower must be
accounted for.
In truth, distributors are accustomed
to enjoying carte blanche when
it comes to the price build and its
appalling how often this results in
pricing that is simply not competitive.
Understanding the price build from
FOB to wholesale or retail pricing in
your chosen market is the best way to
counter this attitude.
To do this, you must be armed with
a realistic cost model that calculates
actual landed costs and uses margins
based on industry norms to determine
final pricing and its viability against
competitors.
Here are some tips for creating your
cost model:
1. Get a DDP (delivery duty paid)
quote from your freight forwarder. NB.
Be certain you have optimised carton
configurations and applicable FTA tariff
savings are applied.
2. Know how the local GST or sales tax
equivalent is applied.
3. Speak to a range of distributors
or get expect advice to benchmark
distributor and retailer margins.
4. Survey the competitors in market
and compile price data to demonstrate
that your price is viable.
This exercise can absorb a great
deal of time and resources, but as the
foundation of any successful export
plan it’s well worth the effort. •••
‘In the markets of South Korea, Singapore, Hong Kong and Taiwan – price is king’
// 13// NOVEMBER / DECEMBER 2015
FINANCE & BUSINESS
Export Market Development
Grants Scheme turns 40
This month marks the 40th
anniversary of Australia’s
Export Market Development
Grants (EMDG) scheme, which has
helped 45,000 businesses expand
offshore.
The scheme reimburses up to
50 per cent of export promotion
expenses for eligible small
and medium-sized firms. It was
established in the 1970s with
legislation passed during the
Whitlam Government, while the first
grants were paid under the Fraser
Government.
Trade and Investment Minister
Andrew Robb said the EMDG
scheme has helped thousands of
Australian firms build a sustainable
presence in overseas markets.
“The longevity of the scheme is a
testament to its success and it has
undoubtedly made a significant
contribution to Australia’s success in
overseas markets,” Mr Robb said.
Over the years grant recipients
have included household names
such as BHP, Cadbury Schweppes,
Campbell’s Soup, Repco and even
The Wiggles to help promote their
talents to the world.
Since the 1990’s the scheme came
to focus exclusively on small-to-
medium sized enterprises, helping
them to expand their businesses.
Other examples include Henselite,
a lawn bowls clothing and
accessories maker; Bangarra Dance
Theatre, who are taking modern
creative indigenous culture to the
world and Cole Clark Guitars, who
are turning native Australian timbers
into handcrafted instruments, sought
after by performers around the
world.
Mr Robb said the EMDG scheme
was more important than ever
following the signing of Free Trade
Agreements with three of Australia’s
biggest export markets – China
Japan and Korea.
“We are now embarking on an
exciting era of trade and investment
in a region with an exploding middle
class, which presents enormous new
opportunities for Australian exporters
across a wide range of areas in the
years and decades ahead,” Mr Robb
said.
A comprehensive, independent
review conducted by businessman
Michael Lee – tabled in Parliament
earlier this year – found the grants
continued to provide effective
support for Australian exporters.
“The EMDG scheme helps sustain
a more outward-looking business
culture and that helps Australia play
to its strengths,” Mr Robb said.
The 40th anniversary was marked
at a special event in Melbourne last
week attended by representatives
from businesses that have benefited
from the scheme, as well as key
industry leaders. •••
This month marks the 40th anniversary of Australia’s Export Market Development
Grants (EMDG)
The 2015 review of the EMDG scheme can be found at www.austrade.gov.au
Andrew Robb…“EMDG scheme is now more important than ever”
// 14// NOVEMBER / DECEMBER 2015
AUSTRALIAN MADE
Aussie Made branding is
‘key’ under TPP trade pactThe Australian Made Campaign is urging businesses to boost country-of-origin branding on products and produce
Partnership (TPP) Agreement.
The TPP will significantly reduce trade barriers, opening up new markets for Aussie growers and manufacturers, said Australian Made
Campaign Chief Executive, Ian Harrison.“But it is important that they make the most of the
marketing opportunity presented by ‘being Aussie’,” he said.
“Prominent country-of-origin branding will play a key role in driving sales in the Pacific region, which has demonstrated increasing demand for Australian products and produce.”
The Australian Made Campaign administers and
promotes the country’s only registered country-of-origin certification trade mark for all classes of Australian goods, the green-and-gold Australian Made, Australian Grown kangaroo logo.
“The stylised kangaroo has been used to promote genuine Aussie products and produce for almost three decades, and the research shows it works,” Mr Harrison said.
Research clearly establishes that the Australian Made, Australian Grown logo is by far Australia’s most recognised and trusted country-of-origin symbol.
In addition, surveys conducted by YSC Online in
// 15// NOVEMBER / DECEMBER 2015
AUSTRALIAN MADE
2010 found that products carrying the logo in export markets were more likely to have increased sales than those that did not.
“Australia has earned itself a reputation for making and growing high quality products and produce, with the Australian dollar falling in value, demand for Aussie exports is growing strongly,” Mr Harrison said.
“For many small businesses involved in export, the Australian Made, Australian Grown logo, with its proven, established links to Australia, becomes their strongest brand in the marketplace.”
In addition to its role as a marketing tool in countries worldwide, the logo is already a registered certification trade mark in TPP nations Singapore and the USA. Plans for further registrations are underway. •••
Trusted country-of-origin symbol … Australian Made logo
// 16// NOVEMBER / DECEMBER 2015
CHINA
Benjamin Sun is a director and co-founder of Think China. He is a digital marketer and researcher with extensive knowledge on the Chinese digital landscape and online consumer behaviour.
BENJAMIN SUN
How to cash in on China’s
biggest shopping dayBenjamin Sun
With a unique language, language and
business culture, it’s not surprising that
China also has its own retail calendar.
Although Australians may shop up a storm
during Boxing Day, and those in the US
open their wallets on Black Friday, Australian
exporters must understand the peak shopping
and gift-giving dates in China to target their
strategy – and Singles Day is one of the
biggest.
1. It gets its name from the loneliest number
Singles Day is celebrated on November 11 as
this date – 11/11 - is made up of the number one.
The unofficial holiday began at Nanjing University
during the 1990s but it has spread across China.
Singletons treat themselves to gifts and party
with their single friends on this day.
2. Singles Day is becoming mainstream
Singles Day transformed into a shopping
festival after Chinese internet giant Alibaba
offered large discounts on its e-commerce
platforms during the holiday six years ago.
Impressed at Alibaba’s success, other
retailers followed suit by running similar sales
and promotions on this date. It is now the most
important date for online retailers in China with
Alibaba reporting 278 million orders on Singles
Day 2014, equating to $12.3 billion.
3. It’s about treating yourself
Purchases on Singles Day are typically for
oneself. The most popular brands during
last year’s Singles Day belonged to clothing
and technology, with budget smartphone
maker Xiaomi, rival phone maker Huawei, and
Japanese apparel retailer Uniqlo, achieving the
highest gross merchandise volume. Purchases
for the home are also popular, with Alibaba
reporting 1.2 million home appliances, 3 million
lighting products and 200,000 bottles of
laundry detergent sold during the holiday in
2014.
4. Presents on Singles Day are different to
other gift-giving holidays in China
Other important dates for retailers in China,
including Chinese New Year and the Mid-
Autumn festival, focus on gifts for others –
relatives, friends, and colleagues. Presents
exchanged during these periods are often
sweets, food, or wine, and usually feature
beautiful packaging or gift sets. Some popular
gifts during these holidays, which may seem
unusual to some Australian exporters include
packaged macadamia nuts and olive oil.
// 17// NOVEMBER / DECEMBER 2015
CHINA
5. Singles Day is an opportunity to keep up
with Chinese retail trends
Australian exporters to China should take
note of Singles Day and consider promotions,
campaigns or other deals to make the most of
this festival in China.
6. The dangers of Singles Day promotions
Despite the appeal of joining in on Singles
Day retail activities, offering Singles Day
promotions could do your business more harm
than good. With some brands pushing price
cuts of up to 80 per cent, resellers often sell
individual purchases at a loss, which could
potentially damage your relationship with
them. Despite the loss, the overall transaction
could be profitable if the consumer buys other
goods after being attracted to the discount.
7. Singles Day could damage your brand
If your goods are positioned as premium
items, large discounts could backfire and
damage your brand, instead of attracting
new customers and increasing consumer
loyalty. When not done well, a Singles Day
discount campaign could damage consumer
relationships that took years to develop. For
premium goods exporters, it may be more
appropriate to offer a free gift with purchase
instead of price cuts to celebrate the festival.
Singles Day celebrations are set to grow in
popularity as e-commerce becomes more
widespread. However, Australian exporters
need to understand the opportunities and risks
before they decide to join in on China’s unique
shopping festival. •••
About Think China Think China is an Australian agency specialising in digital marketing and analysis. The team works across e-commerce, data research and analysis to help customers access the Chinese market, build their brand and develop deeper relationships with mainland consumers.
// 18// NOVEMBER / DECEMBER 2015
CHINA
China-Australia free trade agreement finally gets green light
The China-Australia free trade agreement will come into force before the end of the year after a compromise deal was struck between the Federal Government and Opposition.
ChAFTA is critical for Australian jobs
Trade Minister Andrew Robb said Opposition support
would ensure that implementing legislation for the
landmark China-Australia Free Trade Agreement
(ChAFTA) would pass through both houses of Parliament.
This would create enormous opportunities for Australia in
the years and decades ahead, he said.
The deal reached with the Opposition would not in any
way change or contravene the binding commitments made
to China through the concluded FTA negotiations.
“Nor will they in any way discriminate against our biggest
trading partner,” Mr Robb said.
Prime Minister Malcolm Turnbull said ChAFTA is
“absolutely critical for Australian jobs in the future”.
Australia’s opportunities in the Chinese market are “limited
only by our imagination and enterprise”, he said.
Labor recently unveiled three specific amendments to the
trade deal it would seek in order to agree to the deal.
Those changes would have seen a revision to rules
that meant there would not have been mandatory labour
market testing applied to investor facilitation agreements
// 19// NOVEMBER / DECEMBER 2015
CHINA
“The compromise deal will not in any way discriminate against our biggest trading partner”
(IFAs) for projects over $150 million, lifting the base pay
threshold for 457 visa workers from $53,000 to about
$57,000 and stricter licensing conditions for tradesmen and
women looking to come to Australia.
Minister Robb and Shadow Trade Minister Penny Wong
negotiated the compromise which was rubber stamped by
Cabinet and the Labor caucus.
Labor believes all three of its concerns have now been
addressed and the changes will be put in place by making
changes to migration regulations but not, as originally
proposed, through changes to the act.
The changes still have the force of law.
Under the deal, labour market testing will apply to people
who enter Australia on work agreements, including workers
brought in on 457 visas under the China-Australia deal as
part of an IFA.
Secondly, 457 visa market salary requirements will be
strengthened to reflect wage rates paid under enterprise
agreements, a move that means 457 visa workers will
be more expensive to hire as pay rates on enterprise
agreements are typically higher than the minimum award
rate.
And thirdly, there will be new visa conditions for people on
457 visas in licensed trade occupations such as electricians
and plumbers.
If passed by the Senate in 2015, two tariff cuts are in
prospect before the end of the year and then immediately
after on January 1.
Senator Wong described the deal as a “comprehensive
package of safeguards for Australian jobs”.
“What we’ve got is policy being turned into legal
obligation. So I think that is a substantial strengthening of
the safeguards.”
Mr Robb said the agreement reached with the Opposition
represented a “sensible outcome” which would allow the
free trade agreement with China to come into force as soon
as possible so that the substantial benefits can begin to
flow.
The Australia China Business Council (ACBC) National
President John Brumby welcomed the outcome.
“This is very good news for Australia. Mr Brumby
said. “Both the Government and Opposition are to be
congratulated for working cooperatively in the national
interest to achieve this outcome.”
However, the union movement still has reservations.
AMWU national secretary Paul Bastian said while the
strengthened safeguards were “a step in the right direction”
the government and Labor should not think the political
settlement is enough.
“Our campaign will continue until Australian workers can
be confident that (the China free trade deal) and trade
agreements generally deliver for their interests,” he said. •••
// 20// NOVEMBER / DECEMBER 2015
It pays to shop
around in a volatile
freight market
Keeping up with latest trends.
FREIGHT
Michael Holloway
Container freight markets have
remained volatile in recent
months, with equipment
supply imbalances, choppy energy
markets and shaky underlying macro-
economic sentiment creating plenty of
uncertainty.
Increased capacity – with more and
more “mega ships” coming on-line
continues to place general pressure
on rates. Many lines are struggling to
“hold the line” at higher freight values.
Container shipping rates on the
world’s busiest route (Asia to Northern
Europe) have dropped by more than
20% for two consecutive weeks last
month – and now sit at US$456/
TEU according to the Shanghai
Containerised Freight Index (SCFI).
A recent Reuters report suggested
container freight rates (as measured
by the SCFI) had increased in eight
weeks this year, but fallen in 28 weeks.
Average rates for 2015 were US$659/
TEU compared with US$1171 last year.
The exceptions to this general trend
appear to be on routes where there
are significant container imbalances –
particularly when combined with strong
exporter/importer demand.
For example, we are seeing some strong
rate increases – and a general tightness of
space – for outgoing container freight to
certain Indian subcontinent ports.
Due to a poor Indian pulse harvest last
season, demand for space on these
routes is historically strong this year in the
November/December shipment period
from Australian agricultural commodity
exporters.
We are seeing a substantial increase
in this type of inquiry via CargoHound
(Australia’s first online marketplace for
international freight).
Outbound rates to Chinese main ports,
meanwhile, remain very competitive –
and overall, rates have continued to trend
lower over the last 12 months.
‘Rates have continued to trend lower over the last 12 months’
More mega ships are coming online
// 21// NOVEMBER / DECEMBER 2015
FREIGHT
For a detailed quote Ph: 1300 887 612 or [email protected]
Air Fright | Sea freight | Railroad | Custom Clearance | Freight Consulting | Specialised cargo www.cffworld.com
Amid such volatility, it pays to shop
around on rates to ensure you are getting
the best price on the right service to suit
your requirements.
A key component of the general
“downtrend” in freight rates has been
the massive increase in global container
shipping capacity this year – with more
and more “mega ships” coming on line –
and more to come.
Reports suggest a total 602,000 TEU
capacity has been added to global
container freight supply since the start
of this year alone – and just 72,000 TEU
removed via scrapping. Since January, the
global container vessel fleet has grown
2.9%.
Much of this has been at the “big end”
of the market, with most of the new
capacity being Mega Ships capable of
handling 18,000 TEU or more.
Maersk line, for example, has
launched 20 Triple E vessels in recent
years capable of carrying 18,000 TEU,
and recently confirmed rumours it
has placed orders for 11 new ships
capable of carrying 19,600 TEU each –
expected to come on line in 2017 and
2018.
The question now needs to be asked
if shipping lines will be forced to idle
smaller vessels – and whether this new
“lower paradigm” in shipping rates will
be sustainable. •••
Michael Holloway is an executive with CargoHound, Australia’s first online marketplace for international freight. He has over 25 years of experience in freight, transportation and logistics. He returned to Australia in 2013 from Malaysia where he was responsible for the general management of seven locations with 90 staff in the Asia/Australasia region and the Account management of two major airline customers. Before joining CargoHound he worked for DB Schenker and multi-national B & H Worldwide in the UK, US, Australia and Asia.
www.cargohound.com
// 22// NOVEMBER / DECEMBER 2015
FREIGHT
Australia’s first online marketplace for
international freightCargoHound has freight industry tongues wagging
CargoHound, Australia’s first
online marketplace for
international freight, reached a
major milestone this month with more
than 250 exporters and importers now
registered to use the new service.
Three years in the making, the
CargoHound site has been developed
in close consultation with all sides of the
industry.
This revolutionary tool connects
exporters and importers with reliable
freight forwarders and carriers reducing
the time, cost and risk of shipping
products internationally.
With CargoHound exporters and
importers can compare quotes from
multiple “rated” service providers.
They can then quickly identify the
freight service that best suits their
requirements and budget.
“We are now averaging over 20 quote
requests a week, which is massive,” says
CargoHound CEO and Co-founder Ian
Smith.
“These are all new business leads for
the freight forwarders on our database.”
Mr Smith says the new CargoHound
service, officially launched in June, is
attracting exporters and importers from
a broad range of industries including
automotive, agriculture, fashion, food
and beverage, furniture and retail.
Launch events were held in Sydney,
Melbourne, Brisbane, Canberra,
Adelaide and Perth, attracting a total
audience of more than 400 people.
“People are seeing it as an opportunity
to outsource their logistics function,” Mr
Smith says.
“While we’re not going to pack the
container for them, we can take much of
the pain off their hands.
“We make sure they’re working with
the right service provider at the right
price.”
Why Use CargoHound?
CargoHound is free to join for
exporters and importers with no
ongoing fees.
Mr Smith says the service saves
valuable time and effort in sourcing the
best freight provider.
Clients are able to quickly compare
freight costs in
a competitive
marketplace using
reliable service
providers, which
are rated through
community
feedback.
And for freight
forwarders with
CargoHound there
is no need for door
knocking or cold
calling to attract new business.
“We bring the leads directly into their
inbox … even while they sleep,” says Mr
Smith.
The latest AIBS report released
recently found that 65% of Australian
exporters believe transportation
and freight costs are important
factors adversely affecting their
competitiveness.
And according to a 2014 Manufacturers
Excellence Taskforce of Australia (META)
report, most Australian exporters have
little or no knowledge of costs passed
onto them by freight forwarders.
The CargoHound concept was the
original brainchild of Kim Mauch who
has worked at the “coal face” of the
import/export business for more than
25 years.
As a long-term shipper, Ms
// 23// NOVEMBER / DECEMBER 2015
FREIGHT
To learn more about CargoHound visit: www.cargohound.com or speak to one their freight experts call: 1300 883 243.
Mauch could see where efficiency and
transparency in the freight sector was
lacking and knew exporters and importers
were crying out for a better way.
So she teamed up with fellow founders
Pete Johnson, a commodity trade
specialist, and Ian Smith, an ex-Australian
Trade Commissioner to bring the project to
fruition.
The trio funded the venture for the first
three years before securing seed capital
of $800,000 from a range of investors in
Australia, the US and the UK.
The funding has allowed the new
business to hire key staff and expand and
enhance its technical capabilities.
And it has paved the way for
management to execute an ambitious
strategic sales and marketing plan.
Just recently the CargoHound website
was re-designed as a “mobile friendly”
interactive portal – ideal for smartphones
and tablets.
“That means that when a quote request
comes in, people who are on the road
can respond wherever they may be – with
whatever device they may have,” said Mr
Smith.
Meanwhile, new registrations are
increasing steadily, which has given the
CargoHound team plenty to bark about.
And the Hound team is also now sniffing
out new business opportunities to value-
add to its existing logistics services.
“We have a wealth of in-house expertise
and experience to assist companies with
tenders and new business opportunities,
explains Mr Smith. “Our industry experience
is invaluable.
“Down the track we would like to expand
our consultancy services to further assist
clients.” •••
Seeking expert advice can save time and money
It pays to seek expert advice
before importing or exporting
products across the globe.
Making the wrong decision can
prove very costly.
“When moving freight you must
know what’s involved,” says Hubert
Igbnoba, CEO of Change Freight
Forwarding + Consulting (CFF).
CFF works closely with its clients
to tailor the most efficient way to
move import and export freight.
Such consultation is vital in order
to find the most cost effective
solutions, says Mr Igbnoba.
CFF offers specialised freight
consulting services to assist
exporters and importers to analyse
and identify growth potential – to
maximise efficiency and minimise
costs.
“With our commodity trading
experience, we can also facilitate
matching of potential buyers and
sellers,” Mr Igbnoba says.
“We can look at the processes
currently in place and show them
how they can improve those
processes.
“CFF can help to determine the
best direction for all logistics
For more information contact CFF on ph: 1300 887 612 www.cffworld.com
needs and ensure compliance
with laws and regulations,
including customs legislation.”
Mr Igbnoba says it is vital for
exporters and importers to consult
with experts before making any
decisions.
“Making decisions without
knowledge or know-how can be
very costly.
“That is where we come in.”
Established in 2006, CFF
specialises in air and sea freight,
rail and road, customs clearance
and freight consulting.
“We offer a more customised
and personal service than many
of the larger companies, says Mr
Igbnoba. We see our customers as
our partners … they are not just a
number.
“We try to find the best options
for every logistics transaction as a
priority.”
CFF exports from Australia to key
global trading regions including
Asia, Middle East, Africa, US, UK
and Europe.
And CFF can facilitate door-to-
door pickup and delivery, to and
from anywhere in the world. •••
// 24// NOVEMBER / DECEMBER 2015
FREIGHT
Expert tips on packaging
and labelling for export
Nada Young
In the food and beverage (F&B) sector,
good packaging and labelling are almost
as important as the quality of the product
itself.
This is particularly true for export markets in
Southeast Asia, Hong Kong, Korea and Taiwan,
where I work.
Look and feel, functionality and compliance
can sometimes act as opposing forces, but
they must come together before your goods
are ready for export.
Look and feel
Whether you’re in retail or food service, the
influence your packaging has on sales should
not be underestimated. To compete in an
international arena you cannot afford to ignore
good design.
Resist the urge to add Chinese characters to
your label or change the design so it appeals
to Asian consumers. Despite what you’ll hear
from design and consulting companies about
market specific packaging design (it’s good
business) there is simply no need to design
new packaging for each market.
The best thing you can do is keep your
brand integrity in tact and easily recognisable.
You don’t see bottles of Coca-Cola with
panda bears on them when you open the
chiller in
Taiwan, or Merlions on the coke can in
Singapore.
The last thing you want to do is confuse your
customer. Authenticity means everything in a
region that is plagued by food safety scandals
and counterfeit goods.
Labelling
If you’ve spent any time researching market
specific labelling and compliance you will
know it can be a bit like unravelling a knotted
fishing line. Follow one thread only to be
snagged on an indecipherable jumble the
deeper you go. F&B is a highly sensitive
sector where public health and safety are
concerned.
Generally speaking, it’s very easy to comply
with local labelling regulations by simply
affixing a small sticker with the necessary
information to your packaging. Your importer
should be able to assist and in many cases
they will even print and affix the sticker in-
market.
Functionality
When packaging a product for export it is
important to keep in mind the following:
Breakage
Take your mode of transport into
consideration. The packaging must be
designed to handle repeated loading
and unloading in warehouses, trucks and
containers. It will be subject to different
types of weather, humidity and extreme
temperatures. It may even be stacked,
pushed, shoved, dragged or dropped on its
voyage.
Depending on what you are exporting,
consider wither hot, humid climates such
as those common to Southeast Asia, may
affect your product and take precautions. For
example, shipping your goods with a thermal
// 25// NOVEMBER / DECEMBER 2015
FREIGHT
liner is a simple, low cost way to product
against the most extreme temperature
fluctuation.
Shelf life
The longer the shelf life the better - most
distributors get very nervous when presented
with products that have a shelf life of less
than 12 months.
There are some excellent new packaging
innovations that mean you can add months
to the shelf life of your product by simply
changing the plastic or closure.
Weight
International freight is expensive from
Australia and New Zealand and bulky items
generally cost more to ship (large packs mean
less units per square meter in the container).
I’ve seen major brands have to cut some
of their best SKUs from the export portfolio
because the freight component pushed the
price above the competition.
Pilferage
Luxury items and alcohol are targets for
thieves. Just last month we had a pallet of
wine arrive in Hong Kong with five cartons
mysteriously missing from the middle of the
stack. Make sure your goods are insured and
consider using cartons with no company
logos or shrink-wrapping pallets to deter
raiding hands. •••
Asia Market Director of Incite, an export development agency for food and beverage companies trading with Asia www.exportincite.com
NADA YOUNG
“The best thing you can do is keep your brand integrity in tact and easily recognisable.“
// 26// NOVEMBER / DECEMBER 2015
FREIGHT
Top 10 tips for managing freight costs
In the first part of a TWO-PART series, Kim Mauch, Co-Founder of CargoHound, Australia’s first online marketplace for international freight, gives valuable tips on how to manage freight costs when exporting and importing …
Understanding and managing freight and logistics
costs are critical to enhancing competitiveness in
global markets – yet are too often ignored, or put
in the “too hard basket” by many Australian exporters and
importers.
A joint study by the Manufacturing Excellence Taskforce
of Australia (META) and the Export Council of Australia
(ECA) in 2014 identified most Australian exporters had little
or no knowledge about the breakdown of costs passed
onto them by their freight forwarders and customs agents.
Similarly, the 2014 Australian International Business Survey
(AIBS) found that 63 per cent of respondents nominated
transport and freight costs as critical factors that hindered
their international competitiveness.
This comes as no surprise to me. In my 20 plus years as
a logistics professional I’ve been able to add real “meat”
to the bottom line of the businesses I’ve been involved
with by working hard to understand and control the freight
component of the business cost structure. Here are the first
of my Top 10 tips for Australian importers and exporters
looking to do the same:
1. Know your product
• Do you know your Harmonised Tariff Code? When
sourcing freight quotes, an accurate “product description”
– including knowing the correct codes - will assist in the
most accurate outcome.
• Are your products classified as Dangerous Goods? If so,
// 27// NOVEMBER / DECEMBER 2015
FREIGHT
do you know what code to assign?
• Do your goods require an Import Permit and/or
government inspections at origin or destination port for
clearance?
Many companies waste a large amount of money on
additional charges that could have been avoided by doing
their “homework” up front.
2. Packaging: Do you know how you will pack your
goods for shipment?
• Don’t use worn or old cardboard boxes, use proper inner
packing (i.e., Styrofoam, bubble wrap), do not over pack and
re-enforce your boxes.
• Perishable items, which may leak, must be packed in
solid, leak-proof boxes, containers or bags.
• Use standard size pallets and stacking sizes. Ensure
boxes are secured on the pallet (e.g. with shrink wrap) and
don’t exceed the pallet edges.
• If not using pallets and cartons, securely pack your
goods to ensure safe transit (e.g. Lashing may be required
for Full Container Loads (FCL)).
• Calculate your weights and dimensions correctly,
measure Length, Width and Height from extremities,
and know the gross cargo weight of each item including
packaging weight.
• Hazardous materials/dangerous goods shipments must
comply with relevant Dangerous Goods Regulations.
• Check wood shipping regulations as appropriate.
Businesses using wood pallets, for instance, might not
realise that some countries regulate wood packaging
to control pests and ask companies to follow specific
standards.
3. Labelling: Ensure clear and accurate labelling
• Ensure your package is labelled correctly. Each piece
must be legibly and durably marked with the name and
address of both the Shipper and Consignee. Incorrect
address labelling can delay packages and increase
shipping charges.
• Ensure the shipper, consignee, origin, destination and
shipping marks/goods description are clearly marked on
the “packaging labels” and secured to the goods for travel.
4. What is the most cost efficient shipping method?
• Typically shipping by ocean is cheaper than shipping by
air but this is not necessarily always the case.
• To make the best decision, it is important to know how
carriers charge for international shipping.
Airlines bill by what is called a chargeable weight.
Chargeable weight is calculated from a combination of the
weight and size of a shipment “volumetric weight”.
Ocean carriers charge per container rates for shipping in
standard containers (20’ and 40’ being the most common
sizes). While weight can factor into the price for ocean
carriers, charges tend to be based more on the size of a
shipment.
If you are shipping less than a container load, your price
is often determined by cubic metre or volumetric weight.
With larger and heavier shipments, it is often much cheaper
to ship by sea. As a shipment gets smaller, the margin
between the prices gets smaller and sometimes air will end
up less expensive.
Working out the most cost effective shipping method
(i.e. FCL/LCL/Air) should also take into consideration the
following:
• Transit/shipping time
• Budget
• Condition of shipment i.e. perishable, dangerous goods
etc.
It goes without saying that where possible, you should
plan shipping well ahead of required date.
5. Are you insured and do you have the correct policy?
• Don’t forget to take insurance on your shipment – Many
people overlook this and pay the price!
• You should shop around for Marine Cargo insurance for
the loss and /or damage of goods while in transit.
• It covers the transportation of goods from one place to
another. The mode of transport can be by sea, air, rail, road,
parcel post or courier sending. •••
Kim Mauch is an import/export veteran with 25 years’
experience in the global freight industry.
In PART TWO of this series in our next edition, Kim will
provide the final FIVE tips on:
• Paying freight costs
• How to identify hidden fees
• Cross docking v container delivery
• Demurrage: storage and detention
• How to choose a service provider •••
// 28// NOVEMBER / DECEMBER 2015
Qatar Airways to fly direct to Sydney
World’s best carrier … Qatar Airways will soon fly to Sydney
TRAVEL
The Australian government has signed a new air service agreement
capacity between the two countries.
The move is expected to give a big boost to
agricultural exports as well as tourism.
The changes will add 21 extra flights to both sides
per week.
Qatar Airways will run daily direct services between
Sydney and Doha starting in 2016, as part of the new deal.
Sydney will be the third Australian destination serviced by
the airline, which already operates direct return services
between Doha, Melbourne and Perth.
The route will be serviced by a Boeing 777-300, with
the business class cabin containing 41 seats. Passengers
travelling in business class can expect 78-inch lie-flat beds
and an on-demand à la carte menu service.
The new agreement also offers the option for Qatar
Airways to start more flights to Australia’s regional
locations.
Deputy Prime Minister Warren Truss said the extra flight
capacity from the Qatar deal is a boost for the tourism
industry and will spur growth in the Australia-Qatar and
Australia-Europe routes.
“Under our air services arrangements with Qatar, airlines
can also operate unlimited services between Qatar and
regional locations such as Darwin, Adelaide, Gold Coast
and Cairns,” said Mr Truss.
Qatar is one of the key trading partners for Australia worth
more than $500 million in 2013.
// 29// NOVEMBER / DECEMBER 2015
TRAVEL
There has been an estimated 15.7 percent increase in
the number of travellers from the United Arab Emirates to
Australia in the past year while the number of Australians
visiting the UAE has had a 16.2 percent spurt.
In June, Qatar Airways was judged the world’s best carrier
in the annual SkyTrax awards, in recognition to its attention
to details in spaning every aspect of the aircraft. The
economy seats of Qatar Airways were also lauded for being
the roomiest and most comfortable in the world. The Doha-
based airline also offers the passengers, some
2000 entertainment options on their screens.
Qatar Airways’ two-storey Al Mourjan Business
Lounge at Hamad International Airport is one of the
world’s largest, with 10,000 square metres of space
for up to 1,000 guests at a time.
The lounge has private rooms, family spaces and
a games room. There’s also a nursery and shower
rooms with amenities.
Hamad International Airport also houses a
spa that is accessible for all passengers, with a
swimming pool, squash courts, sauna and steam
rooms. •••
“Under our air services arrangements with Qatar, airlines can also operate unlimited services between Qatar and regional locations such as Darwin, Adelaide, Gold Coast and Cairns,”
// 30// NOVEMBER / DECEMBER 2015
ON
NOVEMBER 9-12 NOVEMBER 11 NOVEMBER 17 NOVEMBER 25
NOVEMBER 10 NOVEMBER 12 NOVEMBER 24 NOVEMBER 25
LOCAL EVENTS
Where: Melbourne Convention & Exhibition CentrePh: 03 9008 5946www.imarcmelbourne.comwww.austrade.gov.au/events
Panel discussion: China FTAHost: Australia China Business CouncilWhere: WestpacTower TwoInternational Towers Sydney200 Barangaroo AveSydneyTime: 6.30pm-8pmPh: 02 9247 0349www.acbc.com.au
Session 1: 9am-10.30amSession 2: 11am-12.30pmSession 3: 2am-3.30pm FREEHost: Austrade Where: The Pullman King George SquareBrisbane QLD Ph: 13 28 78www.austrade.gov.au/events
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Session 1: 9am-10.30amSession 2: 11am-12.30pmSession 3: 2am-3.30pmFREEHost: Austrade Where: The Portside Centre207 Kent StreetSydney NSW Ph: 13 28 78www.austrade.gov.au/events
China Workshop (Issues, challenges, opportunities)Host: Australia China Business CouncilWhere: Hunt & HuntLevel 13Gateway 1Macquarie PlaceSydneyTime: 8am-9amPh: 02 9247 0349www.acbc.com.au
Session 1: 9am-10.30amSession 2: 11am-12.30pmSession 3: 2am-3.30pmFREEHost: Austrade Where: Perth Convention & Exhibition CentrePerth WAPh: 13 28 78www.austrade.gov.au/events
1
International Mining & Resources Industry Exhibition & Conference (IMARC)
State of the Nation China
Market Information Package (MIP) – Education Masterclass Brisbane
Overview of Shanghai’s Free Trade Zone
Investment Opportunities in Timor-Leste Webinar
Market Information Package (MIP) – Education Masterclass Sydney
SME Roundtable Market Information Package (MIP) – Education Masterclass Perth
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ON
INTERNATIONAL EVENTS
NOVEMBER 8-11
NOVEMBER 11-13
NOVEMBER 11-13
NOVEMBER 11-13
NOVEMBER 16-19
NOVEMBER 17-19
NOVEMBER 16-19
NOVEMBER 17-19
NOVEMBER 17-20
Where: Tokyo & Osaka, JapanHost: AustradePh: 13 28 78www.austrade.gov.au
Where: Shanghai www.fhcchina.com
Where: Shanghai New International Expo CentreShanghai www.teaandcoffeechina.com
Where: Shanghaiwww.prowinechina.com
Where: Messe DusseldorfDusseldorf, Germanywww.messe-dusseldorf.de
Where: Hamburg MesseHamburg, Germanywww.hamburg-messe.de
Where: Messe DusseldorfDusseldorf, Germanywww.compamed.de
Where: Myanmar Event Park, Yangonwww.communicastmyanmar.com
Where: Shanghai New International Expo CentreShanghai www.mdna.com
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Australia Future Unlimited Education Exhibition Japan 2015
FHC China 18th International Exhibition for Food, Drink, Hospitality, Food service, Bakery
Tea & Coffee China
ProWine China International trade fair for wine & spirits
Medica 2015 World Forum for Medicine
Intermodal EuropeTransport, storage, logistics exhibitionWorld’s leading container event
Compamed 2015 International Trade Fair High tech solutions for medical technology
Communicast 2015 2nd Communications, Technology, Enterprise & Convergence Solutions Show
Shanghai World of PackagingIncorporating Pro Pac Asia, Bulk Pex, Food Pex, China-Pharm
// 32// NOVEMBER / DECEMBER 2015