WESTERN AUSTRALIAN PORT OPERATIONS TASK FORCE

SEPTEMBER 2014

1. Agenda and Minutes 2. Report from Fremantle Ports 3. Presentation - Qube Tydeman Slot Availability 4. Presentation - Singapore and Tanjung Pelepas Port Logistics

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WESTERN AUSTRALIAN PORT OPERATIONS TASK FORCE

AGENDA AND MINUTES - SEPTEMBER 2014

Date: 4th September 2014 Time: 08:00 - 10:00 Location: Fremantle Ports

Chairperson: John Park Executive Officer: Sophie Gillespie Next Meeting: 2nd October 2014

AGENDA SPEAKER

1 WELCOME/OPENING COMMENTS/APOLOGIES John Park

2 CONFIRMATION OF AUGUST MINUTES John Park

3 PRESENTATION

Logistics developments - Singapore Michael Pal

4 TRADE STATISTICS OVERVIEW Sophie Gillespie

5 ROUND TABLE DISCUSSION

ALL Container Terminals

WARTA

Transport operator

Freight forwarder

Empty Container Parks

Australian Border Force (Customs)

Main Roads WA

6 ROUS HEAD PROCEDURES FOR EMERGENCIES AND LOCKDOWNS Paul Bond

7 CURRENT OPERATIONAL ISSUES

Chain of Responsibility – current position

Patrick revised billing procedure

Availability of ContainerChain notifications

Michael Pal

8 PEAK SEASON UPDATE John Park

9 PORT COMMUNITY SYSTEM UPDATE Michael Pal

10 PORT REPORTS Michael Pal

Jennifer Hall

11 GENERAL BUSINESS ALL

12 FUTURE SPEAKERS AND PRESENTATIONS

Incident Management Plan/MOU

Inner Harbour vessel modelling

Truck survey

Main Roads/FP

Allan Gray

Fiona Callander

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MINUTES Action

1 WELCOME/OPENING COMMENTS/APOLOGIES

Attendance and apologies - see table below

2 CONFIRMATION OF AUGUST MINUTES

No issues with August minutes

3 PRESENTATION - LOGISTICS DEVELOPMENTS IN SINGAPORE

Michael Pal presented his observations from a recent visit to Singapore -

presentation attached.

The main areas of interest included automation, innovative use of restricted land

areas (e.g. trailer stacking, multi-story warehousing, roof-top empty container

parks)

4 TRADE STATISTICS OVERVIEW

See Fremantle Ports Port Report for detailed statistics.

Total trade is up approximately 8% compared to the same period of the previous

year, with continued strong growth in full exports however a slight decrease in full

imports.

Fremantle Ports Trade & Business Department has been working with shipping

lines to investigate peak season projections. Early estimates are indicating a 5%

increase in trade over the peak season (compared to current levels)

5 ROUND TABLE DISCUSSION

All attendees to nominate a deputy from their company to ensure appropriate

stakeholder representation each month

Patrick Terminal - Volumes have increased 45% compared to the same period last

year with similar TTT's being recorded. Questions arose around how Patrick were

managing such significant volumes with little impact on servicing times - reported

that improved processes and better management of resources has enable this.

Tagged runs are reportedly going well, however more companies to participate in

tagged runs are being sought/ Pleasing to note a number of mid range operators

utilising the service. It was noted that operators do not need to use tagging to

access the terminal at night as slots are available 24 hours however are limited at

night due to high number of tagged runs. Tagged runs occur 5 nights a week

(Sunday to Thursday) and will continue throughout peak season.

WARTA - Fremantle Carriers Group working with Fremantle Ports to determine

what issues/actions from the TPS can be taken on and progressed by the group.

Also working with Qube to work through reported issues at Tydeman. Qube to

attend the next Carrier Group meeting to explain what is happening from their

side. More operators are becoming members of WARTA since the inception of the

Sophie Gillespie to

email all requesting

deputy contact

3

carriers group, interested to be interested and learn about what is happening at

the port.

Qube - Tydeman is holding more stock compared to other parks at the moment,

once trucks are in the queue they are unable to get out which contributes to

congestion. Investigating the utilisation of Tydeman. Strong growth in exports is

leading to a natural balancing of stock levels (export containers being utilised in

WA and not needing to be repositioned).

Fremantle Ports has also had discussions with Qube ECP management. Qube have

noted a number of initiatives to assist vehicles flows at Tydeman.

Qube currently looking at statistics and targeting operators who arrive early which

is currently causing the issues. Focussing on carriers who book greater than 10

notifications a week and arrive early more than 20% of the time. Sending

communications to these carriers. If no improvement is seen will need to take

further action.

Questions around whether on-port (or close) operators could be notified if parks

are quiet - Qube responded that although that may benefit on-port operators it is

difficult to anticipate when other trucks will start showing up. Qube reiterated that

they are more than happy to work with carriers to handle different containers at

Central during the extended hours. It was noted that just because there appears to

be no trucks inside a park does not automatically mean that the park is able to

handle trucks - may be internal issues.

Area C has been handed over to Qube this week with works started. Will not be

operational prior to Christmas.

Customs - Shaun Senior was welcomed as the new representative from Customs.

Revised Customs structure from 1st July 2015 - becoming Australian Border Force.

Will be no change to operations of CEF (Container Examination Facility) however

all policy will come through the new department. Uniform change will also come

into force when new department is formed.

The focus of the CEF is to maintain continuity of operations while the changes

occur. Meetings have been occurring with main transport partners as part of an

improved communication and proactive approach. CEF has targets for next 12

months which will not increase during peak season.

Freight forwarder - Reported that volumes are beginning to increase as peak

season approaches. Volumes were up in August and bookings for the next few

months are increasing - looking at a 20-30% increase over peak season. It was

noted that this may be due to the trend in importers not holding stock and

ordering just in time.

Issues have arisen with berthing delays (30 hours) occurring in Singapore before

arriving in Fremantle, which is causing delays down the chain. Reportedly set to

continue for the next month.

No issues have been occurring in relation to border controls, if delays occurring

(due to customs not operating on the weekends) shipping lines have been

extremely understanding in granting extensions.

John Park to

discuss Singapore

delays with

shipping lines

4

Transport - Everything operating well with volumes steady.

Rail - Trains have not been running for the last 3 weeks due to damage to the

bridge. Confirmed that trains will start running again on 5th September. All

containers were able to be transported by road however commencement of train

services will help to reduce truck movements at North Quay.

6 ROUS HEAD PROCEDURES FOR EMERGENCIES AND LOCKDOWNS

Update to be given at next meeting

7 CURRENT OPERATIONAL ISSUES

Chain of Responsibility - Further delay to implementation of CoR due to delays in

finalising the regulations. Work to set up the required systems is also required

before implementation can occur. See more detail in the Fremantle Ports Port

Report.

Patrick revised billing procedure - It was explained that the previous system in

which no shows were contested (through 1-stop) would now be through a

dedicated email address (frevbs@patrick.com.au). There will be no change to the

no show policy and will be considered by Patrick as per normal the process.

There were some concerns about the notification given prior to the introduction of

the changes (2 working days) and the consultation. Patrick explained that there

were plans for this to be notified to the Port Operations Task Force a number of

months ago. There are questions whether this is the appropriate forum to obtain

industry wide consultation, as opposed to providing advanced notice of intentions

with an acceptable period for operators to respond through avenues such as 1-

stop.

Availability of ContainerChain notifications - issues with notification availability at

Tydeman. Notifications booked out on the day but only a few booked for the next

day, notable difference with planning ahead in parks compared to terminals. A

focus for peak season will be around planning ahead with booking notifications at

parks. Transport operators are very much use to organising their operations to

plan a day ahead with the container terminals. It is accepted that empty

containers, relying, on the import side, more on the vagaries associated with

importers making the containers available on time, are more difficult to plan in

advance, but the graphic presented at the meeting showed that there are ample

slots available if transport operators can plan their operations in advance.

Will benefit the chain if each element has a better understanding of the others.

E.g. transport understanding Qube processes and what is driving them. Patricks

has been a good example with improved communication, however need to ensure

that this communication and notice to industry continues.

8 PEAK SEASON UPDATE

Article to be placed in WA Transport Magazine, main focus this year being on early

discussions and planning and extending hours of operation throughout the chain.

5

Custom Broker and Freight Forwarder session to be held at FP on 10th September

which will include briefing on peak season and the materials developed by the

Importer Working Group.

Other actions can be found in the Fremantle Port report.

9 PORT COMMUNITY SYSTEM UPDATE

ContainerChain started up in Singapore with sharing of information becoming

more simply. Technology advances such as automatic processing of trucks,

radiation checks, weighing of containers, auto gates into parks etc will all link into

a PCS. With ContainerChain making these advances in other countries, it is a good

opportunity to facilitate discussion between them, 1-Stop, Customs and other key

parties and IT service providers in the chain.

PCS Study - a brochure highlighting the benefits of a PCS locally has been drafted

and will be finalised in the coming weeks.

It is vital to have the commitment of regulatory agencies such as customs. Have

obtained names of who to speak to in Canberra, and will progress this to get

support which will have major influence on other supply chain participants in using

such a system. Support from regulatory agencies may mean that it becomes a

national focus. It was discussed that WA will be a good place to start as

ContainerChain & 1-Stop provide coverage of all the ECPs and all the terminals,

unlike the Eastern States which have new operators which are not using 1-Stop.

10 PORT REPORTS

See attached

Tydeman Road & Napier Road - unidentified cables owned by PTA has caused

delays due to approvals required. Upgrades will require some road closures (7pm

on Sat in about approx. 4 weeks time until 5am on the Monday). Right turn in and

right turn out of Tydeman road will not be possible for part of this time (7pm Sat -

6am Sun and 3pm Sun - 5am Mon). Bulk run activity will not be possible on the

Saturday and Sunday night. Sunday R&D will continue (and Sat) and will be

unaffected due to contraflow being in place to allow normal operations during

Patrick’s Sunday R&D.

Speed cameras at NQ have been installed for safety. They are to make operators

aware that their trucks may be speeding but will not be used as enforcement. The

carriers who have been notified of a possible issue have responded positively.

11 GENERAL BUSINESS

It was raised that importers/freight forwarders need to be aware that if a

container has a hold on it and they don't make their transport operator aware of it

they will get a charge for no shows. Patrick explained that the e-net website

displays all holds etc.

This is particularly important for stack runs which are book before the vessel

arrives and for slots after 8pm as other slots are available during this time which

John Park to put

out communication

to freight

forwarders re

container holds

and pre advice to

transport

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makes it unlikely that slots returned into the system will be picked up by others. If

a hold is put on after bookings are made transport operators are not charged but if

the hold is on the container beforehand they will be.

ATTENDEES

Adam Williams Superscoop Transport

Bob Hancock Container Cargo Specialists

Darren Byrne Qube Logistics

Darrin Smith Intermodal Link Services

Elizabeth Schultink Cristal Pigment Australia

Geoff Hack EES Shipping

Haydn Hampel WA Road Transport Association

James Sumpton Patrick Terminals

John Elson Department of Agriculture

John Kelderman Chamber of Commerce & Industry of WA

John Park Customs Brokers & Forwarders Council of Australia (CBFCA)

John Ward AWH

Lyn Gill Fremantle Ports

Michael Pal Fremantle Ports

Michelle Awhitu Rosslyn Hill Mining

Scott North Freight Mart International

Shaun Senior Customs

Sophie Gillespie Fremantle Ports

Steve Perkusich Transport Workers Union WA

APOLOGIES

Daniel DiStasio Cristal Pigment

Daniel Lanza Toll Intermodal

Doug Brindal Fremantle Ports

Duncan Walker DP World Graeme Wilson Indian Ocean Shipping Agencies (IOSA) Jennifer Hall Fremantle Ports

Mark Brownell Freight and Logistics Council

Ray U'Chong Jayde Transport

WA Port Operations Task Force: Report from Fremantle Ports Meeting Date: 4th September 2014

1. Key Points of Note Trade was up in August compared to the previous year with significant export growth

Continuing strong results for rail market share

Truck Productivity Study - implementation plan under development

Peak Season Planning continues

Napier/Tydeman Road works delayed

Versacold building demolished

Bulk Run Impact Review kick off meeting successful

2. Trade Statistics (Updated) Results for July 2014 show container trade being 20.9% higher than the same period of the PY

(52,074 TEU) - a strong start to the 2014/15 financial year. Loaded exports were over 30% higher

than the same period of the PY. Loaded imports were significantly up by almost 15% on the

same period of the PY.

Estimates for August 2014 indicate that total trade is up 8.2% for the same period of the PY

(60,710 TEU). Loaded exports again continue strong growth with an increase of 27.7% compared

to the same period of the PY. Loaded imports are slightly lower (1.7%) than the same period of

the PY, as are empty exports.

July 2014 TEU Variance to 2013 YTD Variance to FY13/14

Total 62,941 +20.9% +20.9%

Loaded Imports 30,805 +14.9% +14.9%

Loaded Exports 18,325 +33.2% +33.2%

Empty Exports 11,131 +12.8% +12.8%

August 2014 TEU Variance to 2013 YTD Variance to FY13/14

Total 65,710 +8.2% +14.1%

Loaded Imports 30,483 -1.7% +6.0%

Loaded Exports 20,215 +27.7% +30.2%

Empty Exports 12,595 -2.8% +3.9%

Graphs comparing the 2014 calendar year against previous years are shown below:

3. Rail Market Share Rail share for the 2013/14 FY was 14.2%, 0.5% higher than the FY 12/13 result of 13.7%.

Rail recorded continued strong volumes for July 2014, sitting at 15% share of total trade,

marginally down from 15.8% in June. Looking at TEU volume however, rail recorded the second

highest result in history, achieving 9,421 TEU. August statistics are not yet available.

4. Truck Productivity Study (TPS)

The Truck Productivity Study steering group have met to discuss the implementation plan for

the TPS Strategy and actions, and a proposal is currently under development. Establishment

of specific working groups may be required and the Task Force and WARTA’s Port Carriers

Working Group will be involved in the development of this work program.

The Steering Group discussed the value in developing regular industry forums to discuss

progress of the actions and encourage the ongoing positive involvement of industry in this

type of work. Forums on a bi-annual or more frequent basis are being considered.

An industry brochure summarising the outcomes of the recent Industry Forum held on the

17th July at the Esplanade Hotel was distributed, and is available along with the full TPS

report on the Fremantle Ports website:

http://www.fremantleports.com.au/Operations/Landside/Pages/Container-Movement-

Study.aspx

5. Projects & Studies

i. Importer Working Group

The September 2014 edition of the Importer Newsletter has recently been distributed and is

also available on the Fremantle Ports website. Items included Peak Season Planning

activities, the CBFCA state conference, Chain of Responsibility implications for importers, an

importer case study on the importance of managing communication and planning activities,

and an invitation to an Customs Broker and Freight Forwarder Information Session being

held on the 10th September at the Fremantle Ports offices.

The Information Session will include the latest information on recent port developments,

Importer Working Group activities, challenges facing the import container supply chain,

importer engagement and education, the TPS, peak season planning and Chain of

Responsibility. Customs Brokers and Freight Forwarders are encouraged to attend to get an

understanding of the type of work the Port is doing with importers. To register for the

session, contact jennifer.hall@fremantleports.com.au.

ii. Peak Season Working Group

An engaged group determined a number of actions to prepare for the peak:

The recent press release has been distributed through a number of channels and

taken up in at least one media outlet;

Work will continue on developing “opinion pieces” to distribute particularly to on-

line publishers for distribution. It being felt that these are more likely to get take up

and draw a reaction;

Consideration of strategically placed paid info-ads in key journals to spark

awareness;

Contacting transport operators to identify, from their perspective, customers who

are physically able to allow after hours access to sites but who have not done so;

Promote “tagged”/stack runs; among other items.

iii. Port Community Systems (PCS)

The draft of the PCS communication document is being finalised by the Chamber of

Commerce and will be available shortly.

iv. Tydeman / Napier Road Intersection (Teardrop)

Unidentified cables, requiring movement, have resulted in further delays to the completion

of the traffic light works.

The next step, following completion of the works, will be to finalise the criteria to assess the

successful proponents.

v. Speed Assessments

The camera has been installed. Vehicles are being photographed. The Port is commencing

its “advisory” role (indications of possible infractions) in a staged manner. It is intended to

move the camera to a North Quay location in the near future, following cessation of the

works at Tydeman Road.

6. Compliance and Enforcement (Chain of Responsibility) The introduction of C&E has been postponed to likely Q2 2015. The reasons given have been

the significant amount of work still required on finalising the required regulations and finalising

how these related to likely required infringements for non-compliance.

Each draft of the regulations faces a series of questions, which requiring answering and

resolution prior to the next draft. The regulations are currently up to the third draft. The

finalisation of this draft of the regulations is expected shortly. It is expected to be one of the

final drafts.

It then takes time for the various authorities to adapt their systems (IT, etc.) to administrate the

new regulations. They also want to provide industry with some time to adjust to the new

requirements once the regulations are finalised.

7. Empty Container Parks: ECP stocks and capacity utilisation

Container Parks’ stocks, as recorded on the 15th of each month, are shown in the table below.

Overall stocks are at 72.5%, down from 81% in July 2014.

Logistics Branch Fremantle Ports September 2014

Qube Tydeman 9.30 am Wednesday

Slots nearly full till 12:00

Only four slots planned ahead for next day

Areas of Interest – August 2014

Singapore and Tanjung Pelepas Port Logistics

Tanjung Pelepas

05/09/2014 1

Maersk left Singapore, as PSA would not agree to their terms

Nearly 9 million (virtually all transshipment) now done in Malaysia

across causway

5 kilometres of quaylength

Warehousing and ECPs in the sky

05/09/2014 2

Warehouses the equivalent of 13 stories high, containing six floors of

warehouses

Trucks drive in using ramp system

ECP located on roof = 15 high for a total of 15000 TEU storage

Gantry cranes located on beams to access containers and load trucks

Warehousing and ECPs in the sky

05/09/2014

Warehouses the equivalent of 13 stories high, containing up to six floors of

warehouses

Trucks drive in using ramp system

Empty Trailer Storage

05/09/2014 5

No issues with trailer storage

Trailers stored in racks – ten trailers stored in the space taken normally by one

Modified forklift attaches to trailers and turns them when required

Total time taken to remove/place trailer = 2 minutes

Singapore Terminal Developments

05/09/2014 7

Pasir Panjang Terminals 3&4 = $3.5billion investment

15 new berths – total of 6000 metres of quay – take PSA up to 50M TEU

Goal is for full automation = likely AGV and ASCs/Unmanned Rail Mounted

Gantries on reclaimed area

Terminal Automation Possibilities

Terex Gottwald Port Equipment

Automated Guided Vehicles (AGV) and

Auto Stacking Cranes (ASC)

(Terex Gottwald Advanced Port Technology Presentation 2014.mp4)

05/09/2014 8

Terminal Automation Possibilities

Terex Gottwald Port Equipment

Automated Guided Vehicles (AGV) and

Auto Stacking Cranes (ASC)

(Terex Gottwald Advanced Port Technology Presentation 2014.mp4)

05/09/2014 9

Back Home!

The new 40m, multi-platform, fully-automated weighbridge is being installed

Completion expected approx end of the month