News & Media

22 November, 2019

Australian Newsletter - Issue 601

CHINESE SEABORNE THERMAL COAL DEALS BEING CANCELED, DELAYED AMID IMPORT CURB
Source: Hellenic Shipping News
Chinese buyers of seaborne thermal coal have been cancelling deals or trying to defer delivery cargoes to the end of December amid ongoing curbs on imported material, market sources said Monday. An international trader said a Chinese buyer walked away from a deal when the cargo was loading last week. As such, the trader had to resell the cargo, incurring a loss of about $1.75-$2.00/mt. Chinese buyers do not want to restart discussions until the middle of next month when they will negotiate January cargoes, he said, as they expected restrictions on imports to be eased in the new year. Given the expectations of a huge vessel queue in January ahead of Lunar New Year holidays, the first quarter of next year would be “depressing”, the trader.  FULL STORY

IMO PANEL BACKS AWAY FROM SHIP SPEED OR POWER LIMITS
Source: Nick Blenkey
This week’s sixth session of the IMO Intersessional Working Group on the Reduction of GHG Emissions (ISWG-GHG 6) looks to have backed away from proposals to limit either ships’ speed or ships’ power. According to the U.K. Chamber of Shipping, the IMO panel agreed that a goal-setting approach is the best way to reduce carbon emissions in the short-term. Full details of the approach will be resolved next year. “States and NGO’s discussed the details and the complexities of the different submitted proposals and how they would cut emissions and impact states,” says the U.K. Chamber. “After lengthy discussions it was clear that there was no appetite for prescriptive speed reduction regulation.”  FULL STORY

MALAYSIA BANS OPEN-LOOP SCRUBBERS AHEAD OF IMO 2020 RULE
Source: Reuters
Malaysia has prohibited the use of open-loop scrubbers by ships plying Malaysian waters, as Southeast Asia’s third-largest economy joins the growing number of nations adopting new industry guidelines on reducing sea pollution. New regulations from the International Maritime Organisation (IMO) will require shippers to adopt more environmentally-friendly measures to manage their fleets, including reducing the sulfur content in fuels used in their vessels from Jan. 1 2020. In a notice issued to the shipping industry, Malaysia’s maritime department said ships are now prohibited from discharging washwater from open-loop scrubbers while operating in Malaysian waters.  FULL STORY

NEW INDUSTRY ALLIANCE TO FIGHT STEVEDORE ACCESS CHARGES
Source: Rob McKay (Australasian Transport News)
The latest move in unfettered stevedore infrastructure surcharge hikes has spurred the formation of a new grouping of trucking and trade-services organisations to coalesce. Peak industry organisations Road Freight NSW (RFNSW), the Australian Trucking Association (ATA), Western Roads Federation (WRF) and the Customs Brokers and Forwarders Council of Australia (CBFCA) say they have joined forces to fight "the latest round of crippling charges being imposed by stevedores on transport operators across the nation". The new charges have been announced as the 2018-19 Australian Competition and Customer Commission’s (ACCC) annual stevedore monitoring report, shows that higher "infrastructure access charges" for port users across the country resulted in revenue for stevedores soaring to $166.6 million.  FULL STORY

PORT OF TOWNSVILLE SHINES AT INDUSTRY AWARDS
Source: Eliza Booth (Infrastructure Magazine)
The Port of Townsville has been recognised as a leading Australian port at the Australian Shipping and Maritime Industry Awards, held in Melbourne last week. The Port of Townsville was highly commended in the Port of the Year category. The judges said they were impressed by Townsville’s performance in several key areas, notably the start of the $1.6 billion Port Expansion project, including a container terminal and car carrier wharf extension, which is set to bring about major benefits to the North Queensland economy. “The port showed resilience in the face of adversity earlier in the year when it maintained operations despite severe nearby flooding, thus contributing to the recovery effort,’’ the judges said.  FULL STORY

PORT OF GLADSTONE MAINTENANCE DREDGING ABOUT TO BEGIN
Source: Dredging Today
The trailing suction hopper dredger (TSHD) Brisbane is in the Port of Gladstone area, getting ready to begin a maintenance dredging program, the Gladstone Ports Corporation (GPC) announced today. GPC undertakes maintenance dredging to remove the build-up of sediment in navigational areas so that they can maintain depth in the shipping channels and ensure vessels can pass through safely and efficiently. “There are strict controls in place and monitoring is conducted before, during and after any dredging activity to ensure we minimize any potential impacts on the environment,” said GPC.  FULL STORY and VIDEO

TRUCK BUSTER: PORT OF BRISBANE SCORES INLAND RAIL FUNDING
Source: Mark Phelps (Farm Weekly)
THE Port of Brisbane has receives $20 million in Commonwealth funding and a matching in-kind contribution from the Queensland Government to ramp up planning required to directly connect the Inland Rail with the port. The under construction 1700km Inland Rail promises to connect Melbourne and Brisbane currently terminates at Acacia Ridge. That means all freight will be need to be trucked the remaining 35km on existing roads unless an alternative is found. Already 98 per cent of freight is currently trucked to the port using by road, according to the Port of Brisbane website. In 2018, that equalled about 4 million truck movements, and is forecast to increase to 13 million by 2050.  FULL STORY

CONCERNS RAISED OVER MARINA COSTS
Source: Alexander Scott (The West Australian)
The long-awaited Spoilbank Marina master plan has been met with mixed reviews from Port Hedland residents concerned about the costs of maintaining the multimillion-dollar development. The $95 million project, which would transform the waterfront area off Sutherland Street, was first announced in October last year, with community consultation occurring in August and September. Design plans include 80 boat pens, four boat ramps, a nature play playground, grassed promenade and a floating public jetty. Plans were shown at an open day in town earlier this month, with locals asked to provide feedback to help shape final designs before it is presented to council for approval next month. Port Hedland resident Sharon Smirke said the design was great, but she was worried the ongoing cost of maintenance would be passed on to residents.  FULL STORY

THREE CRUISE SHIPS DOCK IN TAURANGA HARBOUR
Source: Maritime Logistics Professional
The cruise ship season is in full swing with three ships docking at the Tauranga port today. Between 5am and 10am today (22nd November), the three ships cruised into the local shores with plans to leave between 4pm and 7pm. With more than 200,000 tonnage between them, the Majestic Princess, the Caledonian Sky and Noordam have brought floods of guests to the city. The next two cruise ships will arrive on Sunday morning for the day. Cruise ship activity brings significant benefits to the Bay of Plenty including the $90.3m boost the economy received during the 2018-2019 season, said a statement from Tourism Bay of Plenty.  FULL STORY

AUCKLAND PORT MOVE CRITICISED IN TWO REVIEWS
Source: Todd Niall (Stuff.co.nz)
An economic argument for moving Auckland's port to Northland has been harshly criticised in two reviews by economic consultancies. An economic argument for moving Auckland's port to Northland has been harshly criticised in two reviews by economic consultancies. Both reviews say an economic analysis by Ernst and Young for a government-funded working group, failed to provide a credible basis for making a decision on the move. The reviews released by Ports of Auckland, and a third briefing paper by its owner Auckland Council, are part of a push-back against the port-move proposal, which goes to cabinet next month. New Zealand First MP, and Associate Transport Minister Shane Jones, who is championing the relocation case, said he was aware of differing views but considered the criticism "part of the consultancy gossip chain".  FULL STORY

NAPIER PORT'S FIRST PUBLIC RESULT FALLS 61PC
Source: RNZ
Napier Port has delivered a better than expected full year profit, although it's down on the year earlier. The port's net profit fell 61 percent in the year to September, to $6.8 million, but 21 percent ahead of the company's forecast when it listed on the NZX, earlier this year. Revenue rose 8.6 percent to $99.6m as bulk cargo, container volumes, and cruise services increased. The result included $6.4m in costs associated with listing and changing its capital structure, and writing down the value of its investment in Manawatu Inland Port. Napier Port chair Alasdair MacLeod said the decision to list 45 percent of the company was worthwhile.  FULL STORY

PORT TARANAKI FLUNKS ENVIRONMENTAL REPORT CARD
Source: Robin Martin (RNZ)
Increasing log traffic and poor stormwater management have been blamed for Port Taranaki flunking its latest environmental monitoring report. One incident in March this year caused the swim stage of the New Zealand Secondary Schools Triathlon to be cancelled after E coli and enterococci bacteria levels were discovered many hundred times over allowable limits. A Taranaki Regional Council port industries environmental report for 2018-2019 concluded that it was unclear whether the contamination - which started in a stormwater pipe clogged with stock feed - had the potential to cause illness or not.  FULL STORY

EXPORT CATTLE VIGOROUSLY PREPARED FOR LONG TRANSIT BY SEA, FARMERS SAY
Source: Samesh Mohanlall (Stuff.co.nz)
Eight of the 9366 cattle exported from Timaru to China have died during transit in 2019, according to the Ministry for Primary Industries' voyage report summaries. The Ganado Express, Bison Express and the Brahman Express, along with four other consignments from Napier, have exported 25,278 cattle to China in 2019 with 18 recorded deaths during transit to date this year. The practice has come in for severe criticism from animal rights activists who say the bovines endure suffering and cannot handle these long journeys. However, South Canterbury Federated Farmers dairy chairman Ads Hendricks said thorough and careful procedures are followed to prepare cattle for export to whichever destination they are sent.  FULL STORY

CAPTAIN COOK CRUISES FIJI WELCOMES NEW GENERAL MANAGER
Source: Özgür Töre (FTN news)
Captain Cook Cruises Fiji announced the appointment of Bob Speed as general manager, based at their head office at Port Denarau Fiji. A highly qualified hospitality and tourism industry professional, Bob brings over 34 years’ industry experience in Fiji, Australia and New Zealand to Captain Cook Cruises Fiji. Mr. Speed is replacing Tony Acland in the role. Mr. Acland is relocating to New Zealand but will remain as a director and board member of Captain Cook Cruises Fiji and will play a strategic role. Mr. Speed has worked at several hotel and tourism businesses including Denarau Corporation Limited, Ramada Resort Port Douglas, Wyndham Resort Denarau Island, Tanoa Hotels and Copthorne Hotels, New Zealand.  FULL STORY

PNG - EXXON TO START TALKS ON REVISING P'NYANG GAS DEAL
Source: Reuters
Papua New Guinea is set to start talks with Exxon Mobil Corp to try to negotiate better terms from the P’Nyang Gas Project, with an agreement expected by the end of the month if all goes well. The push to extract more benefits from the P’Nyang project is part of a wider effort by PNG’s new government to reap more rewards from the country’s mineral and petroleum resources to lift the country out of poverty. “All things going well we can expect to sign a P’Nyang Gas agreement around the end of this month,” Kua said. The P’Nyang project will help feed an expansion of Exxon’s PNG LNG plant, in which Australia’s Oil Search and Santos Ltd are also stakeholders.  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