News & Media

08 November, 2019

Australian Newsletter - Issue 599

SINK OR SWIM: HOW DECARBONISATION WILL RESHAPE SHIPPING FOREVER
Source: Andrew Tunnicliffe (Ship Technology)
What is good for the world isn’t necessarily good for shipping as we know it. That, arguably, is the key takeaway from a recently published study looking into the effects of carbon reduction on the global shipping industry. Nations of the world have, in recent years, embarked on concerted efforts to meet the challenge of climate change. Those that haven’t do so at their peril, argue the growing many to have enrolled in the fight to protect against a future seemingly more dire by the day. Truthfully it is difficult to counter the conviction with which they speak; this year has already borne witness to some of the biggest ‘climate change’ events ever recorded.  FULL STORY

BHP CONSIDERING LNG FUEL FOR IRON ORE SHIPS
Source: Will Owen (LNGindustry.com)
BHP will decide early next year who the recipient of an LNG tender launched by the company will be. As one of the largest mining companies in the world, BHP has said it feels a responsibility to address its emissions. Indeed, both coking coal and iron ore generate huge levels of CO2 and BHP is a leader in both sectors. In July 2019, the company decided a tender was the best way to evaluate the available engineering, tanks and refuelling expertise, which could assist with its transition to cleaner bulk shipping. The tender BHP finally launched was for LNG-fuelled transport to ship up to 27 million t – approximately 10% of the company’s iron ore – potentially reducing emissions by an estimated 25%.  FULL STORY

AUSTRALIAN STEVEDORING REVENUE INCREASES
Source: The Maritime Executive
Higher infrastructure charges imposed on trucks and rail operators at Australian ports helped the container stevedoring industry increase average revenue per container lift for the first time in seven years. According to the Australian Competition & Consumer Commission (ACCC)’s container stevedoring monitoring report, revenues generated by the infrastructure charges rose by 63 percent in 2018-19 on the previous year. The revenue helped to offset an 8.1 percent decline in average quayside revenue because of ompetition between stevedores and increasing bargaining power of the shipping lines. Average revenue per lift across both the quayside and landside increased by 1.8 percent to A$268 ($185) per lift.  FULL STORY

PULLING POWER FOR BUNDABERG PORT
Source: Mirage News
Pacific Tug has been backed by Gladstone Ports Corporation for a marine industry site at the Port of Bundaberg. The development approval has been approved this week and facilitates a significant project at the Port. The project could bring millions of dollars into the local economy each year, employing hundreds of people during construction and almost 100 people once fully developed. Deputy Premier and Treasurer Jackie Trad said the deal would give Bundaberg a unique advantage when it came to competing in Queensland’s growing marine industries.  FULL STORY

PORT OF NEWCASTLE WINS WHARF PRICING DISPUTE
Source: Kim Ho (Infrastructure Magazine)
The Australian Competition Tribunal (ACT) has ruled in favour of the Port of Newcastle in a legal dispute regarding navigation and wharf pricing. The Tribunal noted that prices should “provide an incentive to a service provider to efficiently (and in a timely fashion) invest in maintaining and improving infrastructure necessary to provide facilities at the Port”. “Prices that are too low can lead to non-investment or delayed investment, or the non-provision of some infrastructure services,” the Tribunal said. The Port of Newcastle welcomed the ACT’s decision Monday about navigation and wharf pricing.  FULL STORY

JAPANESE-BACKED AUSTRALIAN LNG IMPORT PROJECT FACES DELAY
Source: Sonali Paul (Reuters)
Plans for a Japanese-backed project to import liquefied natural gas (LNG) to Australia have hit a hurdle as the group struggles to lock in customers, including Australia’s top gas retailer, Origin Energy. Potential buyers are holding off signing contracts after a drop in local gas prices, industry observers and sources said, leaving the A$250 million ($171 million) project well behind its initial schedule of delivering gas in late 2020. The delay risks Australian Industrial Energy’s (AIE) aim of opening a gas terminal in Port Kembla in New South Wales state ahead of a rival project by Australia’s AGL Energy, while both projects are racing to meet a looming gas shortage. AIE, backed by Japan’s JERA, the world’s biggest LNG buyer, trading house Marubeni Corp and Australian mining billionaire Andrew Forrest’s Squadron Energy, is one of five projects aiming to bring gas to southeast Australia.  FULL STORY

BAD PAINT JOB NEARLY KILLED SHIP’S CREW
Source: Jim Wilson (Freight Waves)
A job painting the walls of a ship’s hold aboard an ocean-going dry bulker very nearly resulted in the deaths of two crewmen who, by luck only, were thrown to their knees instead of pitched to the floor, over 30 feet below, when their improvised work platform failed. According to an official accident investigation report from the Australian Transport Safety Bureau (ATSB), a six-member team had been tasked with cleaning and painting the holds of the log carrier/dry bulker Berge Daisetsu (IMO 9713179), at the port of Portland, Victoria. At the time of the accident, on January 11, 2018, the ship had recently arrived in Australia from Long Beach, California, carrying a cargo of petroleum coke for discharge in Gladstone, Newcastle and Portland. Petcoke, which is a byproduct of crude oil refining, is nearly all carbon and it’s dusty to the touch.  FULL STORY and AUDIO

TRAFFIC RETURNS TO HEDLAND; COMES TO DAMPIER
Source: Cruise Industry News
Six cruise ships are set to dock at the Port of Hedland in 2020, highlighted by calls from Cruise and Maritime Voyages and Royal Caribbean International. The news is encouraging following a 2019 with no calls. In addition, the Caledonian Sky will become the first cruise ship ever to visit the Port of Dampier when she docks there next year. “Pilbara Ports Authority continues to work with Tourism WA, Pilbara Development Commission, the Pilbara Tourism Association, the City of Karratha and Town of Port Hedland to further develop the Pilbara as a cruise destination,” said Kirsty Lawson of the Pilbara Ports Authority.  FULL STORY

DRAFT MASTERPLAN RELEASED FOR PORT HEDLAND SPOILBANK MARINA
Source: Dredging Today
A draft Masterplan to revitalize Port Hedland through construction of the McGowan Government’s Spoilbank Marina and waterfront redevelopment has been released for public comment.. The Spoilbank Marina project represents an important step toward the activation of the Port Hedland waterfront for the local community and those from further afield, said the government. Reflecting significant stakeholder and community input at workshops held during September 2019, the Masterplan incorporates both land and ocean-side development. As part of the overall marina works, it is expected that an approximate total volume of 800,000m³ of material will be generated from sources including cut to fill operations on site and excavated material from the marina waterbody.  FULL STORY

BEIJING BETS BIG ON WA PORT AND RAIL PROJECT, BUT OAKAJEE DEAL IGNITES LEVERAGE CONCERNS
Source: Nathan Hondros and Hamish Hastie (WA Today)
A deal by a Chinese state-owned company to buy out a $9.7 billion port and rail project in WA’s Mid West has ignited concerns about Beijing's leverage over major state development projects. And while the state government has given a lukewarm welcome to an announcement by Sinosteel Corporation they purchased Japanese giant Mitsubishi's stake in the Oakajee port and rail project last month, former premier Colin Barnett said it was good news for the Mid West. The acquisition, which would have been approved by the Foreign Investment Review Board, was announced in October and means the long-stalled project to establish a new iron ore export centre could be revived.  FULL STORY

A LIVE EXPORT SHIP HAS COVERTLY BERTHED AT TIMARU PORT
Source: Scoop.co.nz
A live export vessel has covertly berthed at Timaru Port, bringing this year’s shipments of live animals up to a total of eight. Livestock carrier Brahman Express berthed at Timaru Port on Thursday night. The ship came to the attention of animal rights organisation SAFE on this morning. The ship isn’t listed on the Timaru Port website, which normally has the Port’s full shipping schedule publicly published. It is not yet known how many animals the vessel intends to export or to what destination. SAFE Campaigns Officer Mona Oliver says it is clear that live export companies see the writing on the wall for their business. "New Zealand is facing a gold rush of sorts for live animal exports," says Miss Oliver.  FULL STORY

SUPPLY VESSELS NOT CONNECTED TO BARQUE PROSPECT WORK
Source: Samesh Mohanlall (Stuff.co.nz)
The presence of two large offshore supply vessels at PrimePort Timaru is not related to any work on an undrilled oil and gas area off the Oamaru coast. The 75-metre long Skandi Emerald and Skandi Atlantic, which have been used to support deep sea drilling rigs off the Taranaki and Tasmanian coast, arrived in port on October 22 from New Plymouth and are scheduled to stay until November 26. New Zealand Oil and Gas corporate services general manager John Pagani said no physical activity was planned for the undrilled area known as the Barque Prospect in the near future.  FULL STORY

AUCKLAND WINS ‘BEST CRUISE DESTINATION’
Source: Scoop.co.nz
Auckland has won the ‘Best Australia / New Zealand Cruise Destination’ category in the 2019 Porthole Cruise Readers' Choice Awards. Award winners were determined by thousands of readers and online fans of Porthole Cruise, a leading cruise consumer magazine known for its sophisticated content and high-end brands with an emphasis on luxury travel. Bill Panoff, Publisher and Editor-In-Chief of Porthole Cruise says: “I always look forward to seeing the results of our Readers’ Choice Awards because our readers are discerning travellers who have stunningly high standards for every part of the cruise experience.  FULL STORY

INDONESIA ORE BAN TO HIT CHINA NICKEL PIG IRON, STAINLESS STEEL OUTPUT – ANALYSTS
Source: Tom Daly (Reuters)
A ban on nickel ore exports from Indonesia will sharply reduce top buyer China’s output of stainless steel raw material nickel pig iron (NPI) and have a knock-on effect on production. Indonesia, the world’s biggest miner of nickel ore, has brought forward a ban on exports to the start of 2020, prompting a scramble for supply before it takes effect. As it looks to process more resources at home, Indonesia’s own NPI production – chiefly from projects operated by Chinese companies including Tsingshan Holding Group – could surge well beyond China’s.  FULL STORY

INDONESIAN SHIPPING LINE TO DEPLOY CYBERLOGITEC’S DIGITAL SOLUTION
Source: Container Management Magazine
Indonesian shipping company Meratus Line has signed a contract to deploy Allegro SaaS, CyberLogitec’s container carrier operations solution. The carrier operates a fleet of 56 vessels, 40,000 box containers and 30 container liner services connecting over 30 major ports across the Indonesian archipelago. The software as a service (SaaS) solution offers a pay-per-use model built on the Allegro solution, aiming to allow customers to enjoy the same benefits, such as real-time data for decisions and intelligent algorithms for automated data capture. Kamlesh Devchand, CEO of Meratus Line, said: “Through advanced capabilities, Allegro SaaS will enable us to provide seamless operations from end to end and reinforce our capacity to serve domestic and regional trade and logistics.  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