our sponsors & supporters - grain trade australia ......ship loading siwertell ship loader rated...
TRANSCRIPT
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OUR SPONSORS & SUPPORTERS
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Logistics Conference 2019
DAY ONE SUMMATION& DAY TWO OUTLINE
GEOFF FARSNWORTH
Chair – GTA Transport Storage & Ports Committee
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OUR SPONSORS & SUPPORTERS
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Logistics Conference 2019
PORTS – CHALLENGES OF THE NEW ENTRANT
JOCK CARTER
Executive Director Newcastle Agri Terminal
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New Port DevelopmentsGTA Logistics Conference
Rendezvous Melbourne
April 2019
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‹#›
History of NAT Development
2009 2010/11 2012 2013 2014 2015 2016
NAT was
established
NAT commenced
full operations
Legend:
NAT Business Case / Approval Process
Construction / Commissioning Process
Operational Milestones
NAT
commenced
commissioning
NAT
commenced
construction
Commencement of
lease with Newcastle
Port Corporation
First rail receival
Planning approval
obtained
Commissioned new
road receival and
container packing
facility
ACCC exemption granted for NAT
First road receival
First shipment filled
by NAT
East Coast drought conditions affect export volumes
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‹#›
RAIL
• LOOP – Unloaded up to 72 wagons (5000mt)
• 1800mtph
• Rail direct to Vessel
ROAD Recieved & Outloaded up to 3500mt per day
STORAGE 60,000mt with fumigant recapture
SHIP LOADING Siwertell ship loader rated to 2,000mtph
VESSEL DISCHARGE Import grain capability
BERTH DRAFT Berth draft of 12.8m, capable of Panamax Class
CONTAINER PACKING
Established container packaging capability 2000mt / day
Key Capabilities and Capacity
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Why NAT?
• Churchill Fellowship
• Deregulation created interest in competition and optionality
• Independent service focussed
• Opportunity for innovation and creativity
• Leverage coal industry infrastructure
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Innovation• Increasing train size – mega train
• Export rail direct to vessel
• Fumigant recapture system
• Loading rail direct farm to wagon
• Import grain direct hopper to terminal
• Rail outload capability
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CHALLENGES / OPPORTUNITIES
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Overcapacity??
‘Oils ain’t oils’• Important to differentiate
capacity
• US Shuttle loading terminals
• Black Sea export facilities
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CHALLENGESVESSEL FUMIGATION
• Current situation is legislated environmental vandalism
• Multiple unnecessary fumigations
• Huge cost to industry and community
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CHALLENGESEFFICIENCY = INDUSTRY CAPACITY
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• Collaboration
• Competing Exporters / Competing Rail Providers / Competing Road Carriers / Competing Ports
• How do we achieve this whilst maintaining the competitive environment?
• Coal Industry HVCCC
• Supply chain costs ultimately are borne by the grower
The Challenge of Competition & Co-operation
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Potential Concepts• Grain style HVCCC?
• ACCC sanctioned planning discussions
• Sharing of non-commercial logistics related information
• Involvement of key supply chain participants grower to vessel
• Continuous improvement – no capacity at the moment for industry to critically analyse and improve performance
“Criticism may not be agreeable, but it is necessary. It fulfils the same function as pain in the human body. It calls attention to an unhealthy state of things” Winston Churchill
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Potential Concepts - Fumigation
• On board fumigation on the basis of minor detection sanctioned
• Consistency in treatment of ‘source’ across road / rail / ship / containers
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Questions?
QUESTIONS?
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Logistics Conference 2019
PORTS – CHALLENGES OF THE NEW ENTRANT
SIMON BARNEY
Chairman – Quattro Ports
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Quattro PortsPort Kembla Grain TerminalCommenced Construction – August 2014Commenced Operations – January 2016
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From this ….
To this ….
To this ….
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And finally, to this ….
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And this ….
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Logistics Conference 2019
RESEARCH & DEVELOPMENT- DELIVERING IMPACT
JUSTIN CROSBY
GRDC
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AUSTRALIAN GRAIN LOGISTICSCONFERENCEMELBOURNE APRIL 2019
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RD&E PLAN – DELIVER IMPACT TO GROWERS
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▪ Support research to advise policy and investment decisions that lead to reduced post-farm-gate costs
▪ Invest in R&D that informs industry and government approaches to trade and market access for Australian grain into export markets
▪ Improve the reliability and cost effectiveness of on-farm grain storage to reduce handling costs and capture market opportunities
▪ Improve automation of transport and handling activities and/or alternative logistics and distribution models to realise greater value capture by growers
Post Farm Gate Key Investment Targets (KITs)
GRDC RD&E PLAN 2018-23
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Grains Research and Development Corporation (GRDC)
A Level 4, East Building, 4 National Circuit, Barton, ACT 2600 Australia
P PO Box 5367 Kingston, ACT 2604 Australia
T +61 2 6166 4500
F +61 2 6166 4599
www.grdc.com.au
@thegrdc
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Logistics Conference 2019
MORNING TEABREAK
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Logistics Conference 2019
PORTS – OPPORTUNITIESOF MOBILE SHIP LOADING
MARK LEWIS
General ManagerRiordan Grain Services
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AUSTRALIAN GRAINS LOGISITCS CONFERENCE – 10TH APRIL
PORTS – OPPORTUNITIES OF MOBILE SHIP LOADING
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Riordan ValuesSafety and WellbeingInnovation and Drive
RespectCommunication
Community
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300000T OF BULK BARLEY LOADED VIA PORTABLE LOADER 2017
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Mobile Ship LoadingLow cost infrastructure – droughts & rain
Intensive logistics task – 140 loads pd, 24/7. Happy
to pay for service but it needs to be earned.
Many moving parts – storage, trucks, quality,
people…
Location of grain & storage access critical
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TONNAGE GROWN IN REGIONS
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The storage networkON FARM STORAGE - Needs to be as good as private
system
PRIVATE STORAGES – Flexible
THE SYSTEM - Needs to be flexible, price paid for extra
help
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Innovation and disruption in the supply chain
Match Equipment to demand, utilization of the
fleets we have - AB triples, B triples, Quad, Quad B
/ Doubles.
Operating costs increasing, global competition
becoming more efficient & diverse.
Rail has its place in the supply chain.
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Thank you
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Logistics Conference 2019
QUESTIONS TO SPEAKERS -PORTS
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Logistics Conference 2019
EVOLVING SUPPLY CHAIN TECHNOLOGY
SINCLAIR DAVIDSON
Professor of Institutional EconomicsRMIT Blockchain
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—
Evolving Supply Chain Technology
Sinclair Davidson
RMIT Blockchain Innovation Hub
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46
What I’m not going to talk about today
• Gory technical detail
• Do you really know how your mobile phone works?
• Investment advice
o It is true that bitcoin is now trading at levels not seen since late last year this does not
mean the technology is a dud
o If you don’t understand the investments you are making you shouldn’t make them
o Early investors in many new innovations lose money
o Do not participate in ICOs/IPOs where the blockchain application is not obvious
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What is a blockchain?
• A blockchain is a decentralised, distributed ledger
• The challenge with a distributed ledger is ensuring everyone agrees what the ledger says
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48
Understand the Blockchain in three easy steps
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Some major use cases
• Money and finance (lots of cryptocurrencies aiming for cross-border transactions).
• Land titles and digital asset registries (e.g. intellectual property)
• Decentralised identity management (e.g. for displaced peoples)
• Supply chains
• Sharing economy.
• Democratic voting/collective decision making
• Healthcare (and data markets generally)
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The third generation of the internet
• First generation was internet of data (email, file sharing)
• Second generation was social internet (mobile phone, apps)
• Third generation is internet of value, with native property, rules, money, contracts,
organisation (blockchain, DAOs)
• Digital assets move to the internet (money, stocks, titles, debt, IP, votes, securities,
knowledge, records, data …) and can be exchanged P2P without intermediation.
• But is all of this really possible?
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Blockchains are incredibly inefficient
• Slow (block confirmation times)
• Expensive (mining, transaction fees, storage requirements)
• Hard to scale (transaction times)
• Horrible consumer experience (exchanges, key storage)
• Unnecessary (there are simply better databases, trusted third parties aren’t that bad)
• May destroy the planet (mining)
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Or the institutional cryptoeconomics view…
• We’re applying a large body of economic thought (institutional economics) to understand
how blockchains will change the economy and society.
• What happens to the shape and size of firms? What is the role of government? How does
blockchain change civil society?
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What sort of technology is blockchain?
• We started with what seems like a basic question: what kind of technology is blockchain?
1. Production technology?
o Lowers production costs
2. Exchange technology?
o Lowers transaction costs
3. We argue blockchain is really exciting as an institutional technology:
o Lowers information costs
o Blockchain is a technology of governance.
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So when can we use blockchain?
• When the economic problem involves:
1. Information…
2. Moving through time…
3. In a potentially untrustworthy environment.
• Such as:
o Hostile governments (degrading property rights)
o Complex contracts (layers of subcontracting)
o Suspicious customers / producers / collaborators (certification)
o Any environment with possible opportunism
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Blockchains Industrialise Trust
• Blockchain limit opportunism and industrialise trust
• Convert expensive energy to economically valuable trust
• A whole lot of our economic institutions provide trust
• 35 per cent of the US labour force works in professions of trust
o Lawyers
o Accountants
o Managers
o Law enforcement
o Bureaucrats
• Heroic assumption: trust is a $29 trillion industry
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Trade as an information problem
• When we think supply chains we often think transportation costs.
• But information costs can be higher than transportation costs:
o Where does my wine (really) come from?
o How old is this meat?
o Is this organic?
o Is this is a genuine pharmaceutical product?
o Does this present a biosecurity risk?
o Who needs this information?
o Consumers
o Governments / regulators
o Firms
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What do consumers want?
• Consumers want to know where goods are from, their
characteristics, how they were transported (consumers largely
want information about provenance).
o Where was this fish caught?
o Is my lobster fresh?
o Is this diamond real?
o Was this product produced ethically?
• This information differentiates goods and gives them value.
• Much of this information is currently produced through brand
recognition at some level.
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What do governments want?
• Governments increasingly demand information necessary to comply with
domestic regulations
o Biosecurity risks
o Ethical standards.
• Governments must trust that the information provided by the importer is true
and correct.
• As the number of regulations in each nation grow it becomes costlier to prove
the provenance of goods and whether they comply with local regulations.
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What do producers want?
• Companies also demand information:
o Is there fraudulent activity up or down the supply chain?
o Are there missing markets?
o Can I optimise my supply chain? (e.g. predicting demand)
o Who are my final consumers? (e.g. entertainment industry).
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Might blockchain help?
• Blockchain is a new economic infrastructure for the storage and maintenance of
information about goods as they move.
• Different way to bring down information costs than passing paper-based information
through a hierarchy.
• Blockchain effectively becomes a single focal point for all actors to view supply chain
information.
• Captures the dynamic information about goods.
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Might blockchain help?
• IBM and Mearsk
• IBM and WalMart
• Alibaba
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How could blockchain be used in practice?
• Scanning through QR codes – updating of dynamic information
• Internet of Things (IoT) – smart containers that upload information as goods move.
• Smart Contracts – lead to greater accountability. Don’t pay until the good arrives.
Insurance issues. Event scanning.
• New Data Markets – exciting potential for data markets here – supply chain data is worth a
lot of money, might connect into AI for effective demand management and better
understanding consumer preferences.
• Proof of Location – new next generation GPS technology – uses decentralised sensors to
track containers.
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Where?
Which markets and jurisdictions would we expect blockchain supply chains to be adopted?
• Markets for differentiated goods (perishables, agricultural
products, high-end manufacturing, pharmaceuticals).
• Jurisdictions with comparatively high information
requirements. That is, countries that have high compliance
costs and large regulatory states.
• Where there’s friendly policy settings/government
recognition for the trial and testing of these solutions.
How will this happen? Perhaps through forced adoption – Walmart
in 2018 forced it supply chain to move towards blockchain.
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Early examples
• Agridigital – agricultural products
• Everledger – diamonds, wine
• Traseable – tuna
• And now some broader predictions…
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The world is made of supply chains
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V-form networks
“V-form networks consist of a number of fully independent companies that effectively operate as one vertically integrated company through blockchain technology, coordinated and supplied by a third party.” – Berg, Davidson and Potts
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Conclusion
• Supply chains face an information cost problem.
• Those information costs can be ameliorated by new forms of governance,
but institutional possibilities are constrained by existing technologies and
whether entrepreneurs can apply them.
• Blockchain is a new governance technology for distributed ledgers of
information, and can potentially be applied to supply chains.
• This could have longer-run impacts: de-commoditization, shifts in the value
chain, etc.
• Some policy challenges (government recognition, coordination of
standards) that may be partially overcome through a high-level policy forum.
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References
• Allen, D, Berg, C, Davidson, S, Novak, M, Potts, J, ‘Blockchain TradeTech’, 16
May 2018. Presented to the APEC Study Centres’ Consortium Conference.
• Allen, D, Berg, A, Markey-Towler, B, ‘Blockchain and supply chains: V-form
organisations, value redistributions, de-commoditisation and quality proxies’, The
Journal of the British Blockchain Association, pp.1-8
• Allen, D, Berg A and Markey-Towler, B, ‘Predictions for trade in a blockchain
world’, Machine Lawyering, Chinese University of Hong Kong, 28 January 2019.
• Berg, C, Davidson, S and Potts, J, ‘Outsourcing vertical integration: Distributed
ledgers and the v-form organisation’, RMIT University Working Paper. 31
December 2018.
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Keep up to date with our work
• http://sites.rmit.edu.au/blockchain-innovation-hub/
• http://cryptoeconomics.com.au/
• http://medium.com/@cryptoeconomics
• Twitters: @BlockchainRMIT @cryptoeconomico
@chrisberg @sincdavidson @profjasonpotts
@drdarcyallen
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