wa port operations task force 6 march 2014 - fremantle · wa port operations task force 6 march...

WA Port Operations Task Force 6 March 2014

1. AGENDA

2. EXECUTIVE SUMMARY, ACTION ITEMS & MINUTES

3. WEST AUSTRALIAN PORT OPERATIONS TASK FORCE: REPORT from FREMANTLE PORTS- 6 March 2014

4. CHAIN OF RESPONSIBILITY FEEDBACK FROM

COUNCIL ON TRANSPORT AND INFRASTRUCTURE (COTI) & NATIONAL TRANSPORT COMMISSION (NTC)

5. NICTA PRESENTATION - NATIONAL PORT COMMUNITY

SYSTEM PROJECT

6. TRUCK PRODUCTIVITY STUDY - INDUSTRY UPDATE - March 2014

7. WEST AUSTRALIAN PORT TASK FORCE - ANNUAL

REPORT - 2013

Western Australian Port Operations Task Force

AGENDA

Date: Thursday, 6 March 2014 Time: 0800 – 1000 hours Venue: Fremantle Ports Administration Building, Level 1

Conference Room 1. Opening Comments

Graeme Wilson

2. Attendance 3. Confirmation of February 2014 Minutes

• Business Arising Graeme Wilson

4. Presentations • Port Community Systems Update • Current VBS changes – report from Patrick

Visiting guest(NICTA Bruce Guy

5. Peak Season Items Easter Arrangements

Michael Pal

6. Round Table Discussion • Terminals • Transport Operator • Empty Container Parks • Main Roads WA issues

7. Current Operational Issues • Rous Head Development

Michael Pal

8. Landside Transport - Planning and Strategy • Freight and Logistics Council Land Use Planning

Working Group • Chain of Responsibility • Importer Working Group • Truck Productivity Study

Mark Brownell Michael Pal Jennifer Hall Jennifer Hall

9. Freight and Logistics Council – Updates Mark Brownell

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Port Reports - Review of Task Force Activities - Fremantle General Report

Doug Brindal Doug Brindal

11. Future speakers and presentations

- March 2014 – Importer Working Group and Truck Productivity Study - April 2014 - FPA Rous Head procedures for

emergencies and lock downs.

Jennifer Hall FPA

12. General Business

Next Meeting: 0800 – 1000, Thursday 3 April 2014 at Fremantle Ports

Western Australian Port Operations Task Force Meeting 6 March 2014 Fremantle Ports EXECUTIVE SUMMARY Issues discussed at the meeting included: o Presentations

- Port Community System Update - Patrick update

o Peak Season items o Round Table Discussion o Current Operational Issues – Rous Head

o Landside Transport – Planning and Strategy

- Chain of Responsibility ACTIONS

New Actions

1. All operators to provide information on Easter/Anzac Day operating hours to Laurie Piggott by 21 March at the latest.

2. Consider issuing an information package – Chain of Responsibility Working Group

Carried Over Actions

1. Form a group to consider actions arising from the Annual Truck Survey including actions (3) and (4) from the carried over actions below – Chairman

2. Broker and Importer manifest as suggested by Geoff Hack – Peak Season Working Group

3. List container weight capacity as an item for consideration in future studies of Port efficiency – FPA

4. Analyse data comparing total TEU throughput, rail volumes and truck volumes and market shares – FPA

5. Continue the meeting process with QUBE and selected carriers to discuss the Bookings and Bulk Run issues and to determine what steps are needed to change the behaviour of the principal offenders who are not turning up for booking slots – Michael Pal.

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6. Over the next 3 months (to March 2014) members invited to provide feedback on new customs procedures to the Task Force for a consolidated response.

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Western Australian Port Operations Task Force Meeting 6 March 2014 Fremantle Agenda Item One: Opening Comments from the Chair: The Chairman extended his welcome to members for the 2014 Task Force activities. Agenda Item Two: Attendance Those present were:

• Graeme Wilson Chairman • Laurie Piggott Executive Officer • Doug Brindal Fremantle Ports • Michael Pal Fremantle Ports • Sophie Gillespie Fremantle Ports • Jennifer Hall Fremantle Ports • John Kelderman CCIWA • Jennie Williams CBFCA • Matt Roepen FPA • Liz Schultink Cristal Pigment Australia Ltd • Viv Hall Road Transport Industry • Ray U’Chong Jayde Transport • Geoff Hack EES Shipping Pty Ltd • Darrin Smith Intermodal • Mark Brownell Freight and Logistics Council • Paul Bond Main Roads • Michelle Awhitu Rosslyn Hill Mining • Gavin Dobb Qube • Glenn Wayne DP World • John Sweet Customs • Bruce Guy Patrick • Ian King WARTA • Tim Dawson TWU • Lisa Adams Fremantle Freight and Staging • Alan Mason Department of Agriculture

Apologies for the meeting were noted from: • John Park CBFCA • James Sumpton Patrick

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• Adam Williams Superscoop • Haydn Hampel WARTA • Jasmine Kaur CCIWA • John Ward AWH • Scott Bettinson DB Schenker

Guests:

• Rob Fitzpatrick NICTA • Neil Temperley NICTA • Thomas Vitsounis NICTA • José Garcia de la Guia Valencia Port

Agenda Item Three: Confirmation of 6 February Meeting Notes The Notes were confirmed as a correct record of the meeting. Agenda Item Four: Presentations:

1. Port Community System (PCS) Update by Dr Thomas Vitsounis NICTA) :

NICTA are the consultants appointed by CCIWA, Fremantle Ports and the Freight Logistics Council to undertake a study into the potential for introduction of a national PCS in Australia. Key Points in the PowerPoint presentation included:

• A map illustrating the complexity of the existing logistics system;

• A description of what PCS does:

- Simplifies, synchronises, and integrates a complex process; - Designed for more efficient transfer of information between Supply

Chain Participants

• Brief Description: - An electronic platform to speed administration and information flow; - Transforms the industry into a proactive connected IMEX community

driven by intelligent management of information; - Neutral and secure.

• Benefits:

- Offers change management not just IT; - Improve procedures; - Integration and collaboration are inputs to success

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• What the Study demonstrated: - Identified supply chain inefficiencies - Outlined means for addressing and the role of a national PCS - Described a method of development

• Other factors:

- Benefits already identified at other locations such as Singapore; - Will it be feasible in Australia as a national “brownfield” project given

existing systems in operation? - There is no fast path to success (implementation over 3 to 5 years and

ongoing development); - A good technique is to get everyone around the table and try to change

their minds; - Propose 5 governance operational models.

• Main Obstacles: (refer to slide)

• Benefits – Goals – Buy In (refer to slide) - Do not reinvent elements that have been successfully developed

elsewhere.

Questions:

• Can it and should it be set up nationally? - The Chairman noted that this has been prioritised in WA and the wait for

national acceptance is likely to be too long. It should be designed to accommodate a national set up, but it is more likely to be successful with a local start up. A full-on national commencement is considered too optimistic; therefore start at a lower level.

• José Garcia also noted that the system will not change what the operators (stevedores etc.) do. Its dominant purpose is to make information accessible. He also noted that standardisation is occurring across Europe.

• Can it evolve naturally or will it require government intervention? - Government intervention can inhibit creativity and flexibility; services can

effectively become “mandatory” not through Regulation but through the market place. For example, it can come naturally where there is an obvious benefit to some parties who may then prescribe usage (eg VBS) or use may be promoted through competitive pressure (ie parties can’t afford to not participate for fear of losing business to mere efficient operators) .

• Doug Brindal asked members to comment on the identified inefficiencies slide: - Geoff Hack: One Stop Shop would be great provided all participate. - Chairman: Used the example of changes to C of R regulations that

occurred through collaboration of industry with Main Roads.

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Summing up, the Chairman stressed the importance of PCS and confirmed it will have the full support of the Task Force to continue evaluation and development work on a national system.

2. Patrick Terminal Update by Bruce Guy

Bruce reported that Patrick are currently workshopping issues that are being created by their increased market share. He thinks that the next high-volume Peak Season could require landside changes at the terminal. The following was discussed: • He asked for feedback on the proposal to increase the slot drop notification

from 24 hours to 48 hours but with the loss of the ‘week ahead’ notification for country carriers. The intention is to facilitate more important bulk runs. The response generally was that for some 48 hours will be very helpful but for others it may mean difficulty in obtaining the required information in time. There is also some concern about the loss of the ‘week ahead’. Bruce responded that the country carriers are not necessarily the users of the ”week ahead” facility and are small enough in number to allow Patricks to deal with their special requirements.

The chairman requested that the effect of the loss of the ‘week ahead’ be monitored.

• Bruce also advised that Patrick are proposing that the 30 minute acceptance prior to and post bookings may be reduced to 15 minutes.

• In response to a question about an accident that hindered access

arrangements at Tydeman Road Bruce advised that delays were caused by a workplace injury, which resulted in operations ceasing in order to analyse and rectify the issue.

He acknowledged there was a lack of information during the delay period (but noted that personnel were fully engaged on the accident issues). They are currently reviewing evacuation and emergency procedures and are running drills on how to redirect trucks using the FPA communication systems. Patrick is also reviewing inward and exit gate procedures to increase efficiency through measures such as removal of manual tasks.

• The Chairman asked - now that you also have K Line can you work Saturday and Sunday as well as Friday? Bruce responded that Friday and Saturday are currently going well but that Sunday is slow.

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Summing up, Doug Brindal indicated that there does not appear to be much change in the tag runs but that 48 hours is expected by Patricks to allow for better planning for both the Terminal and carriers. It would be useful if Patrick could advise customers that they can be helped more if they accept tag runs. Bruce responded that Patrick is happy to accept even 2 containers for tag runs. If carriers provide a list of containers on the ship that are certified for tagging even 2 containers will help efficiency. A lot more than this becomes an import bulk run. Bruce indicated that the introduction of changes would occur over the next couple of months but no firm date has been set as yet. Industry will be given plenty of notice of changes.

Agenda Item Five: Peak Season Michael Pal advised that various port operators had been requested to advise of their operating hours over the Easter and Anzac Day period. Advice back to Laurie Piggott as soon as possible would be appreciated. Agenda Item Six: Round Table Discussion ECP’s

- QUBE - Gavin Dobb advised there have been a lot of evacuations, mornings tend to be quiet for dehire and February was heavy due to exports.

- Intermodal – Darren Smith advised that Forrestfield ECP is 90% full and most dehires are in the afternoon. He also advised that grain is the main driver of rail exports and that one of the reasons is that bulk exports cannot be pact quick enough. The Chairman commented that now that there are 23 private grain operators the 12 months export season has been reduced to 4 months and current infrastructure cannot cope.

− DPWorld – the Chairman welcomed Glenn Wayne who has taken over the role of Director and General Manager DPW Fremantle from Adam Holland. Glenn advised that there have been massive changes to the business in the last few months and that he is looking forward to the challenges and is here to make a difference.

Agenda Item Seven: Current Operational Issues Rous Head

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Michael Pal advised that all is going well and that Rudderham Drive would be changed on 7 March to the original one-way system that allows carriers to go directly to DPWorld and not the TMA. This change also affects the access to the rail terminal now on a longer route off North Mole Drive. Port Community System This item was covered in Agenda Item Four – Presentations Agenda Item Eight: Landside Transport – Planning and Strategy Chain of Responsibility The Chairman advised that the July start date is unlikely because the Regulations to be attached to the legislation are still being worked on by the Parliamentary Draftsman. Michael Pal advised that the indicative date for the Weighbridge is still mid July this year. He also advised that recent analysis seems to show that NSW appears to have the resourcing to allow it to be more effective in targeting further up the chain rather than focussing as much on targeting truck drivers as in other states. (see attached document). Ian King advised that, contrary to the experience in some other States, Paul Bond and his team are looking at everyone in the logistics chain. He also indicated that vehicle accreditation will be a big item. Paul Bond reminded everyone that prosecutions can only be considered when evidence is available. Main Roads will be using different sources of intelligence to target non-complying organisations. The chairman suggested that the Working Group have out of session discussions about sending out an information package. Importer Working Group and Truck Productivity Study Jennifer Hall spoke to the reports, which are contained in the Port Report distributed before the meeting. Agenda Item Nine: Freight and Logistics Council Updates To be placed on the website. Agenda Item Ten: Port Reports Report issued electronically before the meeting and either covered in the items above or taken as read.

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Agenda Item Eleven: Invited Speakers April: Importer Working Group and Truck Productivity Study - Jennifer Hall May: Rous Head procedures for emergencies and lockdowns – FPA

Agenda Twelve Eleven: General Business

• The Chairman welcomed and introduced Matt Roepen the new FPA Traffic Controller.

• Ray U’Chong advised that container redirections and getting credit for bookings still a major issue. The Chairman requested that a meeting with Cargo Link be organised.

• Geoff Hack raised the border hold issue with respect to weekend Customs clearances. This has been raised at a Federal level and a report can be expected from john Ward or John Park on their return. John Sweet introduced himself as the Customs representative who advised that resources are tight and availability on weekends is unlikely. Graeme Wilson requested that brokers keep statistics of issues. Lisa Adams advised that Patrick is very accommodating if they are advised of the issue. This requires transport companies to monitor the situation.

Closure The meeting closed at 10.00 a.m. Next Meeting: 0800 - 1000, Thursday 3 April 2014 at the Fremantle Port Authority

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WA Port Operations Task Force: Report from Fremantle Ports Meeting Date: 6th March 2014

1. Key Points of Note • Trade was up in both January and February compared to the previous year. • Positive results for rail market share in February. • Truck Productivity Study Industry Update released. • Importer Guide nearing completion. • Traffic Management Co-ordinator commences role

2. Trade Statistics Trade in February has remained above the same period of the PY (+3.7%). Loaded exports continue to be significantly higher than previous years, +34.9% over the same period of the PY. Overall trade appears to be recovering from the fairly flat results experienced during 2013, with YTD to February now showing an increase on the same period of the previous year (+1.9%).

There is a correlation between the performance of loaded exports in recent times and the reduction in empty export containers, indicating that containers are able to be reused for loaded exports more readily than in previous periods.

January 2014 TEU Variance to 2013 YTD Variance to FY12/13

Total 58,607 +12.3% +2.1% Loaded Imports 29,791 +8.1% +1.5% Loaded Exports 15,319 +32.6% +16.2% Empty Exports 11,694 -19.4% -14.3% February 2014 (Estimates) TEU Variance to 2013 YTD Variance to

FY12/13 Total 53,853 +13.0% +1.9% Loaded Imports 24,642 +1.3% +0.6% Loaded Exports 17,639 +34.8% +16.9% Empty Exports 9,253 0% -15.1%

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

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53,853

40,000 45,000 50,000 55,000 60,000 65,000 70,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Monthly Total Trade (TEUs)

2011 2012 2013 2014

24,642

20,000

25,000

30,000

35,000


Monthly Full Imports (TEUs)

2011 2012 2013 2014

17,639

10,000

12,000

14,000

16,000

18,000

20,000


Monthly Full Exports (TEUs)

2011 2012 2013 2014

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3. Rail Market Share Rail has achieved an improved result in February 2014, resulting from increased exports related to a bumper harvest, sitting at 16.6% share of total trade (based on February estimates). This represents the highest rail share in recent years.

Rail has been trending at 13.1% for the financial YTD, marginally below the FY 12/13 result of 13.7%.

4. Peak Season The trade figures show that the Port is dealing with particularly strong volumes for February. There seem to be some effects on certain operations.

Qube Central has been a regular user of the Congestion Management System over the last two and a half weeks. Patrick has anecdotally had instances where there have been some tailbacks of vehicles waiting to enter their yard.

9,253

0

5,000

10,000

15,000

20,000


Monthly MT Exports (TEUs)

2011 2012 2013 2014

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Other than this, most operations seems to have coped well with the peak.

The next focus will be on preparations for Easter.

5. Projects & Studies

i. Truck Productivity Study (TPS) A brief Industry Update on the progress and findings of the Truck Productivity Study has been developed for distribution in early March, and a more detailed report is being prepared for distribution by the end of March 2014. Other discrete components of the project, such as the transport operator survey and case study interviews, will be prepared for wider distribution in the coming months.

Discussion with the Container Terminals continues in relation to upcoming VBS initiatives that may facilitate improved efficiency and productivity outcomes for transport operators.

ii. Importer Working Group Preparation is underway to release the second Importer Newsletter in the first half of March 2014, with news items to include an update on the progress of the Importer Working Group and the Importer Information Pack, the $88 million customs upgrade, the K-line switch to Patrick container terminal, shipping line free days information, and an update on Easter peak arrangements.

The Importer Working Group will shortly initiate a number of presentations with select large freight forwarders and their import clients to engage with and educate importers directly.

iii. Rous Head Industrial Park (RHIP) The final phase of the RHIP roadworks will be entered when the intersection between the new Port Beach Road extension and Rudderham Drive is opened on 7 March, allowing Rudderham Drive to return to one way operation. Eventually this intersection will also be the access to the future Rail Terminal entrance.

As a result of the return of Rudderham Drive to one way operation, DPW will cease using the TMA for regular operations from that date.

iv. Port Community Systems (PCS) The consultants (NICTA) will present their findings to the Task Force meeting. Further discussions are planned for Friday 7th March with the Steering Committee and a number of industry representatives. The main aim will be to examine NICTA’s findings and recommendations and determine the next steps to be taken in the development of a national PCS.

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v. Supply Chain Cost Modelling The Supply Chain Cost Modelling project is progressing well, with various supply chain scenarios having now been mapped out, and work progressing with key stakeholders to validate cost and timing information. The primary scenarios being explored include:

- road vs. rail - peak vs. off-peak - bulk movements vs. singular movements - staging vs. direct delivery - triangulation vs. dehire, and - use of on-Port facilities vs. off-Port facilities, etc.

A presentation outlining the scenarios and the estimated costs involved will be prepared and presented to the Task Force in the coming months.

vi. Traffic Management Co-ordination Matt Roepen has taken on the new role of Traffic Management Co-ordinator for Fremantle Ports. As the role description states, this person will be “responsible for coordinating traffic operational issues within the Port precinct. Monitors and reviews Port traffic operations, on an ongoing basis and building relations with site operators and the trucking community, to provide the Port with an informed insight into Port precinct traffic issues.” This will provide a dedicated focus on traffic operations at the Port, allowing observation and analysis to plan for permanent solutions.

Matt will, over the course of the next few weeks, be introduced to key stakeholders. We welcome him to the role and wish him success.

6. Industry & Supply Chain Planning

i. Compliance and Enforcement (Chain of Responsibility) The National Transport Commission is seeking responses to a review of the first few years of CoR operation in the eastern states. The review seems to be showing that those states which enforce CoR effectively (with appropriate staffing) are achieving good results.

Two key findings appear to be:

1. The effective states are those not necessarily focussed largely on ‘business as usual’ targeting of transport operators, but are targeting further up the chain.

2. Also, there is a risk that the initial positive cultural change that comes from the introduction of CoR can be reduced significantly where there is the perception that the focus is still on drivers and operators rather than the wider supply chain

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3. Empty Container Parks: ECP stocks and capacity utilisation Container Parks’ stocks, as recorded on the 15th of each month, are shown in the table and graph below. Overall stocks are at 81.5%, up from 70.9% in January 2014, and above the previous year. ICL Bibra Lake have commenced providing stock level data as of February 2014, however capacity is not yet available and has been estimated, which may have a marginal impact on the result.

Feb 2014 Capacity (TEU)

Holding 20'

Holding 40'

Holding TEUs

% Utilisation

Share of Total

Capacity

Share of Total

Holdings

QUBE Central 5,850 1,509 2,024 5,557 95.0% 32.2% 37.5% QUBE Tydeman 2,800 569 1,034 2,637 94.2% 15.4% 17.8%

QUBE Irene St 3,000 1,716 319 2,354 78.5% 16.5% 15.9% QUBE Rous Head - - - - 0.0% 0.0% 0.0%

ICL 1 1,150 218 74 366 31.8% 6.3% 2.5% ICL 2 - - - - 0.0% 0.0% 0.0%

ICL Bibra Lake 1,000 641 26 693 ICS (Forrestfield) 2,400 817 533 1,883 78.5% 13.2% 12.7%

MCD Yard 1,250 433 113 659 52.7% 6.9% 4.5% Patrick Cargolink 700 - 326 652 93.1% 3.9% 4.4%

Total Container Parks 18,150 5,903 4,449 14,801 81.5%

Logistics Branch Fremantle Ports 6th March 2014

81.7% 81.5%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%


ECP Capacity Utilisation: All Parks

2011 2012 2013 2014 Indicative Desired Max

TRIM: 771817 1 Uncontrolled when printed Created:12 March 2014 Printed: 12 March 2014 9:58 AM

FEEDBACK ON OPTIONS TO IMPROVE CHAIN OF RESPONSIBILITY REGIME

Council on Transport and Infrastructure (COTI) & National Transport Commission (NTC) February 2014

Background The NTC sent out a circular email on 17 February asking for comments on an options paper dealing with “Options to Improve Chain of Responsibility Regime”. http://www.ntc.gov.au/NewsDetail.aspx?NewsId=412 The original document provides a number of interesting insights into the success of CoR in the states which have it in force. Of particular interest are the sections dealing with enforcement. With the pending introduction of CoR/C&E here in Western Australia, there seem to be interesting learnings coming from other state’s years of experience with enforcement. These are things we should consider.

Summary The document points out some key findings:

1. There appears to be a correlation between resource availability and priorities within the investigating agencies and their impact on investigation and charging those within the chain;

2. CoR has resulted in “positive cultural change” but there is a risk that its effectiveness may be affected by the perception that the focus “is still on drivers and operators rather than the wider supply chain”. The figures confirm this. This is, however, changing as it seems agencies are slowly going to the source of the issue.

The questions we have to ask in WA are whether, with the experience of the many years of operation in the eastern states, our own authorities:

1. Are resourcing the enforcement teams sufficiently to ensure that those elements in this state further down the chain closest to the actual source of the issue will be investigated and charged; and

2. Ensuring they do not fall into the same error as other states of continuing to focus on prosecuting the “soft target” drivers and operators and, thereby risk losing the “positive cultural change” engendered by the introduction of CoR?

Notes The document notes a number of interesting points:

• p.24 The decision to initiate a CoR investigation can be based on a number of factors and triggers. Among a number of internal factors was:

o resource availability, organisational capability and government priorities.

TRIM: 771817 2 Uncontrolled when printed Created:12 March 2014 Printed: 12 March 2014 9:58 AM

• p. 26 The agencies authorised to conduct CoR investigations “often have varying approaches to enforcing road transport law, which may potentially impact upon the priorities of CoR investigations and affect industry perceptions regarding fairness and effectiveness of CoR” (emphasis added).

• p.27 “Investigation units have been established in the states that introduced C&E legislation but their level of resourcing, and therefore potential impact, varies widely. Easily the best resourced is the C&E branch in NSW RMS… In 2010-11 the 18 (NSW) investigators laid around 400 charges and commenced 63 new investigations” (emphasis added).

• p.28 “Despite the positive cultural change effected by CoR, industry believes that investigations remain focused on drivers and operators rather than the wider supply chain. It seems CoR has successfully moved the focus away from drivers and onto operators but may not have pushed far enough along the rest of the chain” (emphasis added).

• p.29 “Of the individuals charged, 55% have been operators. This suggests that operators are over-represented as the focus of enforcement along the supply chain (however, it should be noted that the figure is trending downwards)” (emphasis added).

• p.42 Among the key principles underpinning all work, health and safety compliance and enforcement activities, was for the actions to be “targeted - focused on the areas of assessed highest risk or the WH&S regulators’ strategic enforcement priorities”.

Final Observation On page 43 the workgroup identified an “issue”: “Is guidance required either in legislation, policy or other materials, regarding securing compliance with the CoR provisions under the HVNL? If so, what form should this guidance take and why?” These appear to be very valid questions.

National Port Community System Project


Simplify, synchronize and integrate complex processes More efficient transfer of information

What is a Port Community System?

NICTA Copyright 2014 Research excellence – Wealth creation for Australia

Existing systems

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A Port Community System? • An electronic platform which connects multiple systems

operated by a variety of organisations that make up a seaport or an airport community.

• Speeds up administration and information flow – one of the easiest and fastest ways to improve efficiency

• PCS transforms industry into a proactive and connected IMEX community, driven by intelligent management of information – it shall be a neutral and open electronic platform enabling intelligent and

secure exchange of information between public and private stakeholders in order to improve the competitive position of the sea and air ports communities; and,

– it shall optimise, manage and automate port and efficient logistics processes through a single submission of data and connecting transport and logistics chains.

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Benefits

• Improves procedures know-how • Integration and collaboration within the

port community are both inputs to success, and outcomes of the process

• PCS Implementation is a “change management project, not an IT project”

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What the Diagnostic demonstrated

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Opportunities

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Benefits – Goals – Buy-in

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What’s next?

To develop a “2nd generation NPCS” making the best use of the most advanced IT solutions

currently available, equipped with world leading and innovative solutions, features, and functions ultimately enabling the development

of the world’s best NPCS

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Future Roadmap – short-term

• Set a benchmark point • Build a simulator • Start with Case studies

– ‘niche portals’ – ‘gold supply chains’

• Build a notification application

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APPENDICES/Back up slides

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Objectives • Identify and, where possible, quantify Australian Port

container supply chain inefficiencies and costs resulting from inadequate, inaccurate or untimely information, communication and data exchange; and

• Investigating means for addressing those inefficiencies and costs including the potential role and benefit that a Port Community System (PCS) could play.

• If a PCS is a potentially cost effective solution, determining the quickest and least expensive means for developing one

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About the project

• Initiated by the Chamber of Commerce and Industry of Western Australia (Inc)

• In collaboration with: – Fremantle Ports – Freight Logistics Council of WA

• Public Tender (late August) • Undertaken by:

– NICTA – Fundacion Valenciaport

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Disclaimer

• Project initiated in WA • Has a clear focus on the potential for

development at a national level.

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CCIWA’s sole interest in this project is to improve supply chains for all Australian stakeholders and will derive no commercial benefit, interest or financial return from the implementation of any port community system. Similarly, NICTA and Fundacion Valenciaport do not have any vested interests or pre-determined views regarding this project other than seeking improved efficiencies in port supply chain operations.

About the project


Focus

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Why this project?

• To keep Australian ports and economy competitive

• Increasing efficiency to streamline information flow

• Enhancing business to business communications and visibility

• Allowing business to focus on their core activities

• Its about committing to win win solutions enabling more competitive supply chains

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Methodology

• Analysis of International Case Studies • Extended Consultation process

– Face-to-face interviews with key Supply Chain Participants (SCP) – 27 interviews (minimum 1 hr)

– Three interactive workshops (Sydney, Melbourne and Perth) – 115 attendees

– On-line survey – 35 valid questionnaires • Engaged 177 individuals and/or companies • 1st October – 6th December • Final submission of deliverable: 16th January

2014

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Current practices - inefficiencies

• Low IT penetration especially for inland parts of the supply chain

• Fragmented industry - “Multiple screens” • Unnecessary number of communication

channels • Problem discovery • An industry relying heavily on manual

transactions • Re-keying information

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Current practices - inefficiencies

• Commercialised information • Limited visibility • The “transhipment problem” • Unnecessary and wasted (truck)

movements

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A Fragmented Industry (Physical moves)

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5 Business Models

1. NPCS Private Establishment Model and Private Operational Model

2. NPCS Public Establishment Model and Public Operational Model

3. NPCS Public Establishment Model and Private Operational Model

4. NPCS Public-Private Establishment Model and Private Operational Model

5. NPCS Public-Private Establishment Model and Public-Private Operational Model

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A non fragmented industry

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Future Roadmap – long-term

• Build the community • Seek alliances with power players • Put emphasis on importers and exporters • Build governance consortium • Foster relationships with incumbent IT

providers • Explore extended benefits • Develop cloud and/or web based

applications • Set an ambitious vision

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Truck ProducTiviTy STudy Industry update, MarCH 2014

the truck productivity study is an important piece of work aimed at developing an agreed approach with industry to improving road transport efficiency at the Fremantle Inner Harbour. the study has involved detailed data analysis to investigate the current industry structure, case study interviews with carriers, industry workshops and a transport operator survey to gather both qualitative and quantitative data on current operating patterns and factors influencing productivity and efficiency. thank you to the various parties who have contributed to these processes.

The road transport industry has been responding well to increasing trade volumes and the issues experienced several years ago, and this is to be commended. The system, however, is not static and there are still issues which need to be worked on with consideration to improving efficiency in the short term and looking forward to a potential doubling of trade volume in the future.

Industry ObservationsThe following are some interesting industry observations which have been identified through the Truck Productivity Study.

� Transport operators’ focus is on total fleet utilisation and the ability to undertake two-way loading to and from the port precinct and customers.

� Unpredictable truck service times are resulting in the increased need to stage containers.

� Variability in servicing times at container terminals and container parks is resulting in operators having to invest in more equipment than if times were more consistent.

� Bulk and tagged runs are preferred by many carriers as a way of avoiding the “mad minute”.

� Opening hours of container parks and customer premises (importers) limits after hours movements and two-way running.

� Many transport operators do not have a suitable balance of imports and exports to achieve two-way loading.

More detail on these findings and strategies, with reporting on the other various components of the study, is currently being prepared and will be made available to industry shortly.

For more information about the study outcomes contact Jennifer Hall via [email protected] or 08 9432 3662.

Key Issues and Next StepsA number of key issues have been identified through the study. The following table outlines the major outcomes that industry seeks and the specific actions that will be pursued in cooperation with the responsible parties, including:

� Western Australian Port Operations Task Force

� Western Australian Road Transport Association (WARTA)

� Transport Operators

� Container Terminal and Container Park Operators

� Customs Brokers and Forwarders Council of Australia

� Importers/Exporters

� Other government agencies

Fremantle Port

Fremantle PortS1 Cliff Street

Fremantle Western Australia 6160

www.fremantleports.com.au

Key Issues outcome Sought actions

1. Container terminal operations and VBS1.1 Availability of VBS slots at the times

transport operators require, availability of tagged runs across both terminals, and “mad minute” process which makes truck scheduling difficult and adds administrative costs

VBS booking processes that support efficient vehicle/ fleet scheduling and reduce overheads

� Complete investigation of major changes to the Vehicle Booking System with the container terminal operators, aimed at minimising the daily rush to secure slots and facilitating more efficient truck scheduling

� Consultation with the WA Road Transport Association and key transport operators to ensure VBS changes meet carrier needs

1.2 Inequality in the relationship between transport operators and container terminals

Agreement on acceptable standards - two-way service standards

� Investigate industry’s interest in exploring commercial relationships that deliver a satisfactory set of standards

� Development of performance standards for inclusion in future container terminal leases

2. Container Park operations and ContainerChain

2.1 Variability of service times at container parks

Consistency of service and management of out-of-slot carriers

� Lease and Operating Agreement provisions relating to servicing efficiency will be in place for new sites.

2.2 Hoarding of ContainerChain notifications making it difficult for smaller operators to get access to notifications

Improve on-time arrival of transport operators in respect to their booked notifications to minimise impact on carriers arriving on time.

� Identify and change behaviour of offending operators.

� Examine introduction of no-show fees.

2.3 Lack of adherence to notification windows (ContainerChain) by other carriers, creating delays

Improve access to ContainerChain slots and ensure all possible slots are available on the system.

� Parks to monitor truck arrivals and take action with carriers that consistently arrive out-of-slot

2.4 Bulk runs to/from container parks and container terminals during R&D peak times

Move bulk runs to off-peak evening/night periods to allow greater efficiency to be achieved for R&D at other times.

� Implement lease provisions and KPIs for new container park sites relating to the hours that bulk runs should take place.

� WA Port Operations Task Force to investigate and facilitate discussions with parties involved in the short term

2.5 Lack of communication regarding availability of containers at container parks and extent of redirections.

Timely and accurate communication to Transport Operators in respect of redirections and where notifications are made for containers that are not in stock

� ContainerChain redirection communication process in place

� Examine with shipping lines and container parks information that can be released to avoid futile trips where containers are out of stock.

3. transport operations and Supply Chain Coordination3.1 Delays within the chain result

in companies over-investing in equipment and other assets to minimise risks caused by variability in servicing.

Minimise impact of “pinch points” by improving regularity and coordination of servicing at container terminals and the efficiency of transport depots.

� Implement lease provisions and KPIs for container terminals and container parks relating to truck servicing.

� Introduce two-way service standards between transport operators and facilities (e.g. CTOs, ECPs etc) and encourage open discussion.

� Re-establish the Fremantle Port Carrier Group (WARTA)

3.2 Difficulty coordinating between the VBS and ContainerChain to achieve two-way loading to/from the port precinct

Improve overall fleet scheduling capability to increase two-way loading to/from the port precinct.

� Pursue development of a Port Community System and incorporate coordination between facilities.

� Examine potential for better links between booking systems and carriers’ Transport Management Systems.

� Where required to coordinate between facilities, ensure sufficient flexibility to deal with dynamic environment is provided.

3.3 Layout and size of client premises impacting on trucking productivity, limits two-way loading.

Importer premises capable of accommodating increased volumes into the future including layout, size, and location

� Educate importers on benefits that can flow from doing things differently.

� Undertake cost comparisons of different transport options.

� Build stronger links between planning authorities and the road transport industry to ensure there is sufficient space for import/export operations.

3.4 Opening hours of clients restrict the ability to deliver containers in the evening, night and weekend periods, reducing two-way loading capability and increasing requirement to stage containers.

Extended importer/exporter operating hours or other measures to improve access and opportunities for after hours operations.

� Undertake cost comparisons of extended operating hours.

� Discounted rates for after-hours/weekend deliveries

3.5 Quality of drivers Improve access to and retention of quality drivers to facilitate increased trade in the future.

� Appropriate training of drivers

� Provision of quality working conditions for drivers

3.6 Flow of information and issues such as information delays, duplication, missing data, inaccurate information causing delays and inefficiencies along the chain

Increased awareness of the costs and impacts of information-related issues.

� Progress Port Community System assessment and development.

� Move to fully paperless systems.

� Education of key stakeholders in the supply chain on the costs and impacts of information delays, missing/inaccurate data, etc

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WA PORT OPERATIONS TASK FORCE

ANNUAL REPORT 2013 ADVANCING CONTAINER SuPPLy ChAIN EFFICIENCy

The WA Port Operations Task Force, working with industry, has made further progress over the past year towards greater efficiency in the supply chain for Fremantle Ports’ container trade.

Fremantle Ports handles almost all of the container trade for Western Australia and a well-integrated and efficient supply chain is critically important in enabling sustainable growth.

Collaborative effort is essential in achieving improved integration and this has been a major focus of the Task Force in 2013, with some positive results. A combination of improved facilities, system changes and better communication has reduced the risk of congestion, particularly at peak periods.

It is encouraging to see the level of cooperation within industry and increased awareness of factors that influence efficiency of landside logistics.

I take this opportunity to thank members of the WA Port Operations Task Force for the contribution they have made to achievement of objectives.

I also acknowledge our industry and business partners for their interest and cooperation as priority actions are implemented.

While there is still more to be done, there is clear evidence that the supply chain for Fremantle Ports’ container trade is working better today than it was five years ago. In 2014, we look forward to making further progress with current actions, and to seeing a start on other planned initiatives.

Graeme Wilson Chair

Chairman’s overviewThe Task Force was originally established in 1987 to provide on ongoing forum for discussion and exchange of views on key issues confronting the international supply chain through Fremantle Port. In recent years its focus has been on the container trade and in particular seeking to deal with the congestion issues that were being experienced several years ago. There has been considerable success in this area and the last two peak Christmas seasons have functioned very smoothly despite record trade being achieved through the port.

The Task Force seeks to achieve its objectives of improving supply chain efficiency through its monthly meetings where industry and Government agencies discuss key issues and identify actions which need to be taken. The Task Force also sets up special purpose Working Groups to bring together key people within the industry to examine critical issues such as peak season preparation to avoid congestion.

As such, the Task Force is an important and effective force for the improvement of trade efficiency and growth through Fremantle. This report on 2013 activities summarises progress on key strategies and actions in which the Task Force has been involved.

LANDSIDE LOGISTICS EFFICIENCIES

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The following is a summary of progress in relation to priority objectives set by the WA Port Operations Task Force to provide for container trade growth in Fremantle Ports’ Inner harbour.

Towards achieving objectives

Task Force presentations

• high Street Fremantle upgrade Project - Main Roads WA

• Fremantle Ports Break Bulk Trade - Fremantle Ports

• Chilean Ports Truck Appointment System - university of Valparaiso

• Container Control and VBS Improvements - 1-Stop

• urban Planning and the Consideration of Freight Supply Chain/Transportation Requirements - Planning Institute of Australia

• Customs Facility Tour and Cargo Reporting Compliance Activity - Customs

• Chain of Responsibility (CoR) - Main Roads WA

• Rous head Development - Fremantle Ports

• Freight Forwarder’s Perspective (Operational Issues) - EES Shipping

• Annual Truck Survey Results 2013 - Fiona Callendar

• Port Community System initiative

Presentations on a wide range of topics helped inform the work of the Task Force during 2013.

Provision of adequate port-precinct container storage capacityContainer storage is one of the uses of the new land being developed at Fremantle Ports’ Rous head Industrial Park. Construction of roads and installation of services for the 27 hectares of land reclaimed through dredging were nearing completion at the end of 2013 and development of leased areas is in progress.

Fremantle Ports’ new Truck Facility, incorporating a truck marshalling area (TMA), is assisting traffic flow within the area and with the adjacent Rous head Café/Caltex fuel stop is a vast improvement for drivers. The TMA has one of the most advanced automated number plate recognition systems in Australia and an automated call up system for trucks waiting to enter the container terminals. This reduces congestion caused by queuing, particularly at peak periods.

Identification and use of temporary sites at Rous head for container storage in peak season has been important, as demonstrated in the 2012/13 season. The need for overflow facilities in the 2013/14 peak season was monitored by Fremantle Ports, with potential sites such as the “sand patch” identified. Further alternatives are being developed.

Increases in container stacking height, made possible as a result of new handling equipment at key container parks, were a key contributor to increasing empty container park (ECP) storage and proved crucial in maintaining smooth flows through parks in the summer of 2012/13 and 2013 Christmas peak.

The Task Force has regularly considered and made comment on these developments to ensure industry views were taken into account.

Supporting increased use of rail

Fremantle Ports’ extension of the North Quay Rail Terminal is underway and is expected to be completed in mid 2014. The $31.4 million project is funded by the Federal and Western Australian Governments.

Expansion of rail infrastructure servicing Fremantle Port will help get more containers on rail, reducing the growth of port-related truck traffic.

The project is designed to increase the efficiency and capacity of the rail infrastructure servicing Fremantle Ports’ container trade. It involves extending the existing rail terminal from 400 metres to 690 metres.

The rail terminal extension will give improved access for transfer of containers and enable shorter turn around times for trains, making rail more competitive as a means of transporting containers to and from the port.

The rail terminal/stevedore interface has been addressed in the design for the extension and discussions between Fremantle Ports and the stevedores on this matter are continuing.

These included:

Container traffic management and forward planning

The Truck Productivity Study is an initiative of Fremantle Ports with support from the Freight and Logistics Council of WA to investigate the key barriers to productivity and efficiency experienced by container transport operators and handling facilities. The study seeks to identify possible industry initiatives to facilitate improved efficiency outcomes.

WA Port Operations Task Force members are providing information and data as well as taking part in the study as stakeholders. Substantial progress has been made through surveys and industry workshops and it is expected that the reporting of study outcomes, including action plans for priority initiatives, will be completed in the first quarter of 2014.

Some initiatives have longer term planning horizons and will be progressed with relevant stakeholders through the Task Force.

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The Task Force is also represented on the WA Freight and Logistics Council Land use Planning Working Group which has a program to inform and educate the planning industry about planning for freight

in industrial estate design and protection of corridors. This aligns with the Task Force’s objectives of protecting port freight corridors and achieving greater use of inland facilities.

Increased efficiency in receival and delivery activities

Container terminal operations The Task Force has over a number of years established a sound relationship with both Terminals to ensure industry views are known. This has contributed to the significant improvement in performance at both Terminals – amongst the best in Australia.

Minimising daytime bulk runs has been identified as an important step in reducing congestion. Although daytime bulk runs are still occurring, evening bulk runs have been the subject of negotiations between shipping lines, container parks and container terminals. The Task Force will be reconvening further three-way discussions on this topic. Minimising daytime bulk runs is a provision in new ECP leases at Rous head.

Extended hours for Saturday mornings have been introduced and although unexpected issues have reduced take-up, QuBE has agreed to keep its facility open. New ECPs, as part of the Rous head development, will have extended hours when they open from late 2014. Provisions within their leases will promote after hours R&D activities.

Extended working hours is included in operational requirements for all new leases at Rous head and for lease renewals where these leases are for businesses involved in container handling operations.

ECP booking system

ContainerChain, a web-based information and visibility portal for the container logistics community, has been independently implemented. Its aim is to provide a single window for all participants involved in the industry to view and transact empty container movements, and thereby improve the overall efficiency of these movements and ultimately reduce costs for all port users.

The Task Force has been actively supporting efforts to increase the automated operation of the system by monitoring shipping line electronic data compliance.

Another key goal of the Task Force is to assist in finding the balance between the flexibility provided by a notification system, required in the dynamic landside supply chain, and the discipline necessary to minimise truck turnarounds.

Machinery reliability

Ensuring that container parks have reliable machinery is an important element in achieving increased efficiency. There is an ongoing obligation to ensure that machinery is reliable and this is included in new lease contracts for container parks.

Protection of Port Corridors and Greater Use of Inland Facilities

Communication, engagement and education

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LANDSIDE LOGISTICS EFFICIENCIES

1 Cliff St Fremantle, Western Australia, 6160

T: +61 8 9430 3555 F: +61 8 9336 1391

E: [email protected]

www.fremantleports.com.au

76981 acorndesign.com.au

There has been significant work over the past 12 months on the Task Force objective of engaging and educating container importers on processes, responsibilities, roles and operations along the entire supply chain. One of the activities has been the ongoing campaign to encourage early ordering ahead of the Christmas peak.

Container throughput at Fremantle Port was at record levels for October and November in 2013, compared with previous years. Although there were a number of contributing factors, it seems likely that the “order early for Christmas” campaign has played a significant part.

The message to importers seems to be getting through and the Task Force’s Peak Season Working Group will continue this campaign in 2014. Bringing in Christmas stocks as early as possible reduces the risk of congestion at the container terminals and subsequent delays in getting goods delivered to the shelves in a timely way.

As well as encouraging importers to order early where possible, the Task Force has been emphasising via media and business channels that importers need to have adequate arrangements in place for receival and delivery of goods if they are to avoid penalty costs for late return of empty containers to the depots. This means establishing good communication channels between importers and their Customs brokers, freight forwarders, transport companies and shipping lines.

Each year a large number of importers face detention costs because they have not returned containers on time. As importers control the timing of container unpacking,

they are responsible for any resulting detention costs that may occur; however early advice of issues arising can help minimise delays and avoid financial penalties. The WA Port Operations Task Force has prepared a guide for detention relief. This is available at the following link: http://www.fremantleports.com.au/Planning/WAPOTF/Pages/Presentations.aspx

An Importer Working Group was established in July 2013 to develop further initiatives and programs to educate and engage container importers. Varying importer warehouse opening hours to create a better match with the port terminals is one of the aims.

A quarterly Importer Newsletter was introduced in December 2013 and education materials are being developed. During 2014 the Importer Working Group will present to major freight forwarders and their import clients to directly engage with and educate importers on current Port initiatives, the supply chain and

opportunities to improve the efficiency of their import processes.

Additionally, Fremantle Ports has recently implemented an Importer Relationship Management Plan. This includes undertaking a pilot liaison program with importers and freight forwarders. So far, the program has been very successful with importers keen to establish closer working relationships with Fremantle Ports. Fremantle Ports hopes to extend this program to include exporters in the near future.

As part of its activities to complement Main Roads WA’s Chain of Responsibility education process, the CoR Working Group of the Task Force is focusing on an element of the new legislation of particular importance to the landside supply chain; namely Container Weight Declarations (CWD). The group worked on a CWD guide, which is now ready for distribution early in 2014. It also completed a handy reference card for drivers with overloaded containers.

The Task Force has keenly observed developments in the implementation of CoR and continues to assist Main Roads WA in understanding the particular issues for terminals and drivers in the port environment.

wa port operations task force 6 march 2014 - fremantle · wa port operations task force 6 march...

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