News & Media

20 December, 2019

Australian Newsletter - Issue 605

SHIPPING INDUSTRY PROPOSES MANDATORY $5BN R&D FUND FOR DECARBONISATION
Source: Marcus Hand (Seatrade Maritime News)
Leading industry organisations are proposing a $5bn R&D fund to help reduce emissions from Shipping, with financing come through a bunker levy. The $5bn funding over 10 years would come from shipping companies across the globe for a new non-governmental Research & Development organisation to pave the way for decarbonisation of shipping. The aim would to accelerate the development of zero emission vessels by the early 2030’s in line with the IMO’s targets for CO2 emission reductions from shipping.  FULL STORY

NEW REPORT ON BIOFUELS’ ROLE IN SHIPPING LAUNCHED AT COP25
Source: Biofuels International
The Sustainable Shipping Initiative (SSI) has launched a new report on the role of biofuels in the decarbonisation of the shipping sector at the United National Climate Change Conference (COP25). The report, titled ‘The role of sustainable biofuels in the decarbonisation of shipping: the findings of an inquiry into the sustainability and availability of biofuels for shipping’, was commissioned by the SSI in January 2019. It reflects a broad stakeholder consultation process to explore the potential role of biofuels in the decarbonisation of shipping. SSI shared key conclusions and recommendations with COP25 participants, alongside two of the association’s members: WWF and the China Navigation Company.  FULL STORY

SHIPPING TUSSLING WITH POTENTIAL RISKS FROM NEW IMO RULES
Source: Duffie Osental (Insurance Business Mag)
The global container shipping industry is grappling with potential risks from new rules that aim to reduce marine pollution. New rules from the International Marine Organisation (IMO) have given shipowners a January 01 deadline to either switch to low-sulphur fuel or install devices known as “scrubbers” in a bid to reduce global sulphur emissions. However, industry figures have voiced concerns about the potential risks of both options – including sudden fires or collisions due to engine failure and liability for inadvertently breaching the rules. And with the industry needing to invest an estimated US$10 billion to adhere to the new rules, analysts say there may be reason for the concern.  FULL STORY

NEW CLEAN SHIPPING FUEL RULES, WHO POLICES THE POLLUTERS?
Source: Jonathan Saul (Reuters)
Sweeping new fuel rules aiming to cut pollution belching from ships and save lives are now just a couple of weeks away but with no central policing agency and several countries still not signed up to them, compliance is a major concern. From January 2020, ships must use fuel with a sulfur content of 0.5%, down from 3.5%, or install devices that strip out the toxic pollutant - known as scrubbers. As a result, refiners and shipping companies will spend billions of dollars in the years ahead on ensuring fuel and engines comply. But enforcement of the United Nations convention on cleaner fuels - known as MARPOL Annex VI - rests with individual countries and flag states, meaning for some routes and regions, compliance is already looking patchy.  FULL STORY

UAE PROMISES LIGHT TOUCH ON 2020 ENFORCEMENT
Source: Malcolm Latarche (Ship Insight)
Vessels calling at UAE ports including the bunkering hub of Fujairah will be treated to a light touch over 2020 fuel compliance according to a report on the news organisation Arabian Business’ website. The report quotes Federal Transport Authority chairman Abdullah Al Nuaimi as saying “It's not going to be from day one' that the UAE starts imposing penalties. It’s very important to realise that we look at things not in terms of ‘either you do this or you will be paralysed.’ We think: ‘what would be the easiest way for you to operate within our environment?’” While the UAE ratified the rules in May, it won’t rush to punish non-compliant ships, he said.  FULL STORY

RECORD FINE FOR OPEN-LOOP SCRUBBER USE IN HAMBURG PORT
Source: Gabriella Twining (Dredging and Ports)
The authorities in the Port of Hamburg have imposed a record fine to a tanker that breached its open-loop scrubber ban. The Marshall Islands-flagged vessel received a EUR50,000 (USD55,000) fine on behalf of the Department of the Environment and Energy. The fine was imposed following a routine check carried out by the local water police at the end of November 2019 and concluded that there was an environmental breach. Officers found that the tanker had an open-loop scrubber installed on board. Currently, under the relevant CDNI convention, the discharge of wash water from such a scrubber into the river Elbe and into the Port of Hamburg is banned.  FULL STORY

LNG EXPORTS CONTINUE TO UNDERPIN AUSTRALIA’S GROWTH
Source: Mirage News
The Resources and Energy Quarterly December 2019 again confirms the importance of Australia’s LNG exports in delivering significant economic returns and helping to reduce global emissions. According to the Department of Industry, Innovation and Science, the value of Australia’s resources and energy exports Australia’s resource and energy export earnings are forecast to set a record $281 billion in 2019-20, up from $279 billion in 2018-19. Liquefied natural gas (LNG) exports have more than doubled over the last few years and are contributing significantly to this growth. LNG is now Australia’s second largest export after iron ore, with export value forecast to reach $49.3 billion in 2019-20. APPEA Chief.  FULL STORY

PORT ACCESS A CONCERN FOR GRAIN EXPORTERS
Source: Mirage News
Grain growers and exporters continue to raise concerns about the fairness and transparency of access to Australia’s bulk grain export supply chains, including ports, despite Australia experiencing its lowest annual grain production since 2007-08 and lowest bulk grain exports since at least 2011-12. The ACCC’s latest bulk grain ports monitoring report found that while grain exporters could generally access Australian ports during the 2018-19 shipping year, they remained concerned about the fairness and transparency of their access, especially at facilities operated by CBH and Viterra. Australian bulk grain export port terminal services remain dominated by three port terminal service providers; CBH, Viterra and GrainCorp.  FULL STORY

BINJOUR BAUXITE MINE A STEP CLOSER
Source: Michael Gorey (Bundaberg Now)
Australian Bauxite Limited (ABX) has announced plans to go ahead with its proposed mine between Gayndah and Mundubbera. The company told the Australian Securities Exchange today it will lodge a mining lease application early next year. If approved, unrefined bauxite will be shipped from the Port of Bundaberg in bulk tonnages. “A mining lease application will be lodged in early 2020, commencing with pre-¬lodgement discussions with government departments as soon as practicable,” the company said. “Binjour Project is fully funded by ABX’s marketing partner, Rawmin Mining of India.  FULL STORY

INVASIVE ANT SURVEILLANCE SUCCESS
Source: Farm Weekly
The Department of Primary Industries and Regional Development's (DPIRD) surveillance program for red imported fire ant (RIFA) at Fremantle Port and surrounds is progressing well, identifying another queen and two worker ants. The queen, buried half a metre underground at the initial nest site, and the nearby worker ants were discovered after odour detector dogs Willow and Cola, from the National Red Imported Fire Ant Eradication Program (NRIFAEP) in South East Queensland, indicated the ant activity. RIFA (Solenopsis invicta) are characterised by their ability to form 'super colonies' with multiple queens and is one of the world's worst invasive ant pests.  FULL STORY

BROOKFIELD INVITES BANKS TO PITCH FOR COAL PORT IPO MANDATE
Source: Sarah Thompson, Anthony Macdonald and Tim Boyd (Australian Financial Review)
A handful of investment banks has been asked to pitch for a role on what's expected to be one of the larger initial public offerings of 2020 – and potentially one of the more controversial. Canadian infrastructure giant Brookfield has wasted no time in kicking off the IPO process for its $2 billion-plus Dalrymple Bay Coal Terminal in Queensland. It is understood Brookfield issued a request for proposal in the past week for at least one more integrated investment bank to help it consider exit options for DBCT, which is one of the largest coal-exporting ports in the world. Brookfield already has Bank of America and HSBC on board helping assess trade interest, as this column revealed, and is keen to add an initial public offering leg to the process.  FULL STORY

$25 MILLION TO SUPPORT CAPE HARDY PORT PRECINCT
Source: Mirage News
The Federal Liberal and Nationals Government will provide $25 million to support the Cape Hardy Port Precinct in South Australia’s Eyre Peninsula. Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Michael McCormack said the investment would support a multi-commodity deep-water port at Cape Hardy. “This proposal will bring together agriculture, mining, green manufacturing and indigenous business into a multi-user, multi-commodity manufacturing and export hub in South Australia,” Mr McCormack said. “Right across South Australia and the nation, we are investing in the critical infrastructure needed to connect our world-class food, fibre and commodities to export infrastructure”.  FULL STORY

NEW FACILITIES TO IMPROVE KWINANA BULK TERMINAL
Source: Mirage News
Ports Minister Alannah MacTiernan has today formally opened a new workshop, offices and amenities at Fremantle Ports’ Kwinana Bulk Terminal to help support expanding bulk trades. The new $3.9 million facilities replace decades-old, outmoded buildings used by more than 100 port staff. The new complex is part of Fremantle Ports’ broader planning work to maximise the potential of Kwinana Bulk Terminal, 20 kilometres south of Fremantle adjacent to the Kwinana industrial area. Kwinana Bulk Terminal is one of two Fremantle Ports outer harbour facilities and last financial year handled 3.34 million tonnes of trade, made up predominantly of bauxite, LPG, cement clinker, gypsum and nut coke. The new complex is positioned on the site to optimise use of the land footprint for stockpiling and business growth, while the buildings have been designed to further improve safety of staff and contractors.  FULL STORY

PORT HEDLAND: IRON ORE EXPORTS UP TO 43.8 MILLION TONNES
Source: Hellenic Shipping News
Pilbara Ports Authority has delivered a total monthly throughput of 59.3 million tonnes (Mt) for the month of November 2019. This throughput was an 8% increase compared to this time last year. The total throughput for the 2018/19 financial year to date is 291.5Mt, an increase of 2% from the same time last year. The Port of Port Hedland achieved a monthly throughput of 43.8Mt, of which 43.3Mt was iron ore exports. The monthly throughput was a 9% increase from November 2018. Imports through the Port of Port Hedland totalled 158,000 tonnes, an increase of 45% from 2018.  FULL STORY

CONTROVERSIAL PHOSPHATE CARGO FINALLY UNLOADS IN DUNEDIN
Source: NZ Herald
Bad karma surrounding phosphate ship Federal Crimson dogged its visit to Dunedin over the past week.
The 33,000-tonne Singaporean-flagged vessel has been the subject of protests in recent weeks for carrying 51,000 tonnes of controversial phosphate rock from Western Sahara. It was believed to have struck part of the Ravensbourne wharf as it berthed last Wednesday. Maritime Union of New Zealand Port Chalmers Dunedin secretary/treasurer Phil Adams said concerns over possible structural damage and the safety of those unloading the vessel prompted the union to stop its members from working on the wharf. "One of our members rang me and said that they didn't feel the wharf was safe until it had been checked out.  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