Shipping Australia’s viewShipping Australia’s viewon increasing productivity/competitiveness of on increasing productivity/competitiveness of

the Australian maritime industrythe Australian maritime industry

By Mr Ken FitzpatrickBy Mr Ken FitzpatrickChairman, Shipping Australia Limited Chairman, Shipping Australia Limited (and a Director of Asiaworld Shipping)(and a Director of Asiaworld Shipping)

24 August, 201224 August, 2012

It is clear to SAL that Australia is losing ground in terms of productivity/competitiveness in almost all areas of shipping.

The impact of increasing port costs are being exacerbated by congestion and inadequate infrastructure.

Bold steps are needed to reverse the trend.

There are positive signs as far as container stevedoring is concerned;

Third operator

Greater terminal investment/automation

Issues to be addressedIssues to be addressed

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Increasing port costsIncreasing port costsLarger port increases 2009-2011Larger port increases 2009-2011

Dampier 2009

Port Dues 78%

Melbourne  

Wharf Access 69%

Portland  

Wharfage, Full 40' Container 18%

Empty 40' Container 61%

Melbourne 2010

Motor Vehicles & Bulk liquids 19%

Bunbury 2011

Berth Hire Berths 1 & 2 170%

Increasing port costsIncreasing port costs

SAL monitors the annual price increases for a selection of ports. In 2012 this amounted to 88 individual port charges from 18 ports. Of these 88 port charges, 82 were increases above the forecast rate of inflation for 2012 (2.7%).

The average for this data set being an increase of 13%. This average is influenced by the spikes in the graph - from PMoC’s Port Licence Fee and also one-off spikes such as the wharfage charge increase of 53% at Port Hedland.

Port congestion – break bulkPort congestion – break bulk

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Vessel Name Arrival Date/Time Departure Date/Time Days at port

HAPPY RIVER 7/06/2012 13:25 1/07/2012 13:36

24

FRAUKE 13/06/2012 2:30 7/07/2012 20:31

24

DARLING RIVER 13/06/2012 14:31 9/07/2012 17:59

26

Compiled from data retrieved from http://www.phpa.com.au/shipping/qryDepartedrpt.asp

Container congestion in 2010 and 2011 was particularly severe especially in Sydney.

Average port call 5-6 days.

Normal 1.5 to 2 days.

Caused by industrial disputes in the negotiation of a new EBA but;

Also serious operational/lack of productivity problems.

Despite new technology container handling rates per crane hour basically flat-lined over last 10 years: but light at the end of the tunnel.

Container Shipping CongestionContainer Shipping Congestion

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Need to upgrade connections to/from ports.

Development of inland ports to increase freight on rail / ease congestion.

SAL study emphasis need to tackle commercial / contractual issues to promote optimal utilization.

National Port Development Strategy is a start.

Priorities for infrastructure development / harmonization of port planning amongst States/Territories.

Looking forward to National Freight Development Strategy and

State strategies, including NSW.

Sea/Land Interface: The PinchpointSea/Land Interface: The Pinchpoint

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Break bulk infrastructure lacking in Australian ports.

Lack of skilled labour remains a problem.

Looking forward to the priority list to be published by Infrastructure Australia.

State Infrastructure priorities then need to be identified.

The Future The Future

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Summary of main points from the presentations Summary of main points from the presentations we have received todaywe have received today

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