News & Media

19 July, 2019

Australian Newsletter - Issue 583

NSW GOVERNMENT DISMISS NEWCASTLE INQUIRY
Source: Port Strategy
Australia's New South Wales government is standing by the development of Port Botany in response to the Public Works Committee’s (PWC) inquiry into the impact of Port of Newcastle sale arrangements on public works expenditure in New South Wales. PWC's inquiry into the Port of Newcastle sale arrangements found the “Port Commitment Deeds including the conditions of sale and the levy were not disclosed to the public or the Parliament” and should be investigated further. Published in February, the inquiry's report recommended that the NSW Government conduct a review of the state's ports policy, including the potential for a container terminal at the Port of Newcastle. However, the Honourable Andrew Constance MP, NSW Minister for Transport and Roads, said investment in Port Botany makes economic sense.  FULL STORY

NO IMPACT FROM BROOME EARTHQUAKE ON AUSTRALIA OIL, GAS, PORT OPERATIONS
Source: Sonali Paul (Reuters)
Oil and gas operations onshore and offshore Western Australia were unaffected by a magnitude 6.6 earthquake that struck off the northern coast of the state on Sunday, the country’s offshore petroleum safety regulator and companies said. “NOPSEMA has not received any reports of impacts to offshore oil and gas facilities following the earthquake,” a spokesman for the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) said. There was no major damage reported after the quake, which hit at a depth of 33 km (21 miles) at a point about 203 km offshore from the beach resort of Broome, state Fire and Emergency Services Commissioner Darren Klemm told reporters in a televised media conference.  FULL STORY

BHP LOOKS TO LNG FOR LOWER IRON ORE SHIPPING EMISSIONS
Source: Daniel Gleeson (International Mining)
BHP, as part of its goal to reduce greenhouse gas emissions across its operations, has released the world’s first bulk carrier tender for LNG-fuelled transport for up to 27 Mt of its iron ore. The company said: “Introducing LNG-fuelled ships into BHP’s maritime supply chain will eliminate nitrogen oxide (NOx) and sulphur oxide (SOx) emissions and significantly reduce CO2 emissions along the busiest bulk transport route globally.” BHP, as part of its greenhouse gas emission reduction plans, recently signed a memorandum of understanding with Mitsubishi Development to work together in the pursuit of emissions reductions, including from the life-cycle use of marketed products.  FULL STORY

'EXTREME' PRICE GAP SPELLS TROUBLE AHEAD IN LNG
Source: Angela Macdonald-Smith (Australian Financial Review)
Woodside Petroleum, Oil Search and Santos are facing what some say is the biggest ever threat to their liquefied natural gas export revenues, as the patience of their customers in Asia for paying above-market prices runs out. Evidence has grown in past weeks that customers in the top-tier markets of Japan and South Korea are prepared to act more aggressively than ever before in price review negotiations to reduce the large disconnect between their crude oil-based contract prices and the rock-bottom spot LNG price. The mismatch means most LNG contract prices are now more than double the spot price, leaving buyers in the mood to press hard for changes.  FULL STORY

PACIFIC NATIONAL SAYS IT'S 'NOW OR NEVER' TO UPGRADE NSW RAIL FREIGHT INFRASTRUCTURE
Source: Parkes Champion-Post
Pacific National, Australia's largest rail freight operator, has warned the NSW Government it risks losing future export container volumes to the ports of Melbourne and Brisbane if critical rail freight infrastructure is not upgraded or built within the next four years. Pacific National chief executive Dean Dalla Valle said the efficient running of regional freight trains in and out of Port Botany in Sydney needs to be a top priority for the NSW Government in its third term. "It's now or never," he said. Mr Dalla Valle said running a freight train loaded with containers from country NSW over the Great Dividing Range into Sydney will become too inefficient, unreliable and hence costly within four years, forcing many regional exporters to bypass Port Botany.  FULL STORY

REFRIGERATED PRODUCE TRIAL FROM PORT OF TOWNSVILLE TO ASIA
Source: Jessica Johnston (North Queensland Register)
A refrigerated export trial is under way at the Port of Townsville in a bid to deliver fresh produce directly from North Queensland to the world. Specialty melons grown in the Burdekin are being loaded on to refrigerated shipping containers during the three week trial, to measure optimal harvest time and shelf life validation for sea transportation to Asia. Port of Townsville trade development manager Maria James said the trial could prove to be a major boost for the north's horticulture sector. "At present growers in North Queensland send their produce south for export, which adds to their supply chain costs and delivery time," Ms James said.  FULL STORY

TERMS OUT FOR NAPIER PORT IPO
Source: Sarah Thompson and Anthony Macdonald (Australian Financial Review)
Initial public offering hopeful Napier Port is seeking to raise between $NZ204.3 million and $NZ234 million, according to terms sent to prospective listed equities investors on Monday. The shares will be offered in a $NZ2.27 to $NZ2.60 per share range, valuing the company post-listing at as much as $NZ497.6 million on an enterprise value basis. The price represents 10.9-times to 12.5-times forecast EBITDA for the 2019 financial year and 10.6-times to 12.2-times 2020 forecasts. It implied a 2.9 per cent to 3.3 per cent cash dividend yield, based on 2020 forecasts. Deutsche Craigs and Goldman Sachs are joint lead managers on the deal. A bookbuild is scheduled for August 6 and 7 to determine the final price, according to terms in front of potential investors. It's expected to attract some interest from Australian fund managers with mandates to invest across the Tasman.  FULL STORY

DARWIN PORT APPOINTS NEW CEO
Source: India Murphy (Infrastructure Magazine)
Landbridge Australia has announced the new Chief Executive Officer at Darwin Port. Darren Lambourn has been appointed to the position, and will be responsible for the overall operations and management of the Darwin Port. He will report directly to Landbridge Australia’s Managing Director, Mike Hughes. Mr Lambourn has a wealth of experience in supply chain operations in general cargo and bulk logistics. Most recently, he worked as the General Manager Bunbury for Southern Ports Authority where he was instrumental in the development and implementation of new port masterplans, which successfully streamlined systems, processes and recruitment of critical positions.  FULL STORY

QUEENSLAND COAL EXPORTS SET NEW RECORD
Source: Stephanie Roker (World Coal)
Queensland’s resources sector continues to underpin the economy and regional jobs after coal exports set a new State record with 21.43 million t of metallurgical and thermal coal exported in June said the Queensland Resources Council (QRC). QRC Chief Executive Ian Macfarlane said the 11% increase on the same month last year highlighted the increasing demand from world markets for Queensland’s coal. “Queensland’s coal is the commodity of choice with our high quality thermal coal needed to power high efficient, low emissions coal-fired power plants in Asia and our metallurgical coal used to make steel is building the bridges and skyscrapers in modern cities,” Macfarlane said.  FULL STORY

MAERSK, MSC BOXSHIP HEAVYWEIGHTS BREAKING AUSTRALIAN RECORDS
Source: World Maritime News
Western Australia’s Port of Fremantle is setting new records with the arrival of two Post Panamax containerships this month. The first one, the 2016-built Maersk Skarstind, arrived in Fremantle on July 15, while the second one, the MSC Elma, is scheduled to arrive on July 20. Capable of carrying more than 9,400 TEU each, around double the number on most container ships visiting Australia, the vessels feature a length of 300 meters and a width of 48 meters. In the past week, both ships have been calling at major Australian container ports before they will make their last Australian calls for these visits at Fremantle.  FULL STORY

PUSH FOR NORTHERN RAIL FREIGHT ROUTE
Source: Pam Graham (Wairarapa Times-Age)
Wairarapa businesses want the option of railing goods north to Napier Port, if it is economic. The issue of “changing the direction of freight trains” came up at a Business Wairarapa lunch in Masterton this month attended by Small Business Minister Stuart Nash. JNL Mill manager Paul Jordan said there was a perfectly good rail line from Masterton to Woodville which was not being used. Nash said the government was investing in KiwiRail and the country needed a rail network that was working well for regional economies. He said he didn’t think rebuilding Wellington’s CentrePort, which slumped after after the Kaikoura earthquake, was a good investment of money. Napier Port was really gearing up, Nash said.  FULL STORY

PORT NEEDS HIGHER CRANES FOR LYTTELTON STRADDLE CARRIERS
Source: Martin van Beynen (Stuff.co.nz)
Work is under way to lengthen the Port of Lyttelton's container cranes to allow the port's new straddle carriers to fit under them. Port strategic engagement manager Phil de Joux said crane lifting was relatively common and was considered when the new straddles were purchased. "Ship-to-shore cranes are lifted to either fit taller straddles, or to allow larger vessels to be unloaded." The port company was lifting three of its four cranes, as one of the cranes was designed for the new straddles.  FULL STORY

FEEDER BOXSHIP BRINGS DOWN CRANE AT INDONESIAN PORT
Source: Grant Rowles (Splash 247)
Feeder boxship Soul of Luck defied its name yesterday, slamming into a pier and bringing down a gantry crane at Indonesia’s Semarang Port. According to VesselsValue, the 1997-built 1,597 teu Soul of Luck is owned by Greece’s Victoria Oceanway. Soul of Luck was arriving at Semarang Port Sunday afternoon from Malaysia’s Port Klang, when the incident occurred. The vessel allided into the pier and struck a gantry crane, bringing down the crane, and went on to hit another vessel at the terminal. No fatalities were recorded, only minor injuries to a truck driver who was taken to hospital. With quay cranes tumbling around the world in recent months insurer TT Club last November urged port operators to install laser sensor technology to avoid costly accidents.  FULL STORY and VIDEO

POOR MOORING FACILITIES AFFECT SHIPPING SERVICES TO LAU
Source: Koroi Tadulala (FBC News)
The Goundar Shipping Limited submitted its petition to the Standing Committee on Natural Resources to provide Reliable Safe and Affordable Shipping Services for the Lau Group. During the submission, Company Director George Goundar highlighted the difficulties faced by his shipping crew when they make trips to Lau. Goundar highlighted key issues including poor mooring facilities that destroy the marine ecosystem and lack of jetties. He’s urged the standing committee to consider making roads on the Islands to ease transportation and quicken their service. “I lose about four anchors a year and just imagine a four-tonne anchor destroying the sea bed… the government should play a part in providing proper mooring facilities.”  FULL STORY

INDONESIA APPROVES ABADI LNG PLAN
Source: Kallanish Energy
Indonesia's government has approved the revised Plan of Development (PoD) for the Abadi LNG project. The venture will produce 9.5 million metric tonnes per year (Mtpa) of liquefied natural gas, processing gas from the Abadi field in the offshore Masela Block. It’s estimated to contain 10 trillion cubic feet (Tcf) of natural gas in place. Japanese firm Inpex owns 65% of the license, with the remaining 35% held by oil supermajor Royal Dutch Shell. The submitted plan is estimated to cost between $18 billion and $20 billion, with first gas expected in 2028. "For Indonesia, making progress on Abadi is critical,” said Andrew Harwood, research director of Independent Analysis firm Wood Mackenzie, in a note.  FULL STORY

Whilst every effort has been made to ensure the accuracy of the information contained herein, Inchcape Shipping Services accepts no liability nor makes any representations or warranties of any kind, express or implied, as to its completeness, accuracy, reliability or suitability