WA PORT OPERATIONS TASK FORCE

MARCH 2015

1. Executive Summary

2. Agenda and Minutes

3. Report from Fremantle Ports

Key points of discussion:

Further discussion around the MOU and communication to industry required. The MOU between Fremantle Ports and Main Roads provides for resource sharing in the case of an incident within the Port Precinct

Qube Tydeman redirecting volume to other parks to reduce congestion, as well as reducing notifications during bulk runs and monitoring on-time arrivals

CoR App released. Search 'CoR' in your app store to download - look for this icon

Transport Operator Information Seminar held 12th March - approximately 90 attendees

Importer Working Group established strategic plan for 2015

FLC to undertake an evaluation of the impact of internet access and speed on industry

WAPOTF to be involved in Perth Freight Link charging model review

Port Community System meeting to be held 17th March with service providers

Key actions arising:

Further discussion to be held in regard to the

MOU between Fremantle Ports and Main

Roads and communication to industry

Meeting to be held with Fremantle Ports,

Container Terminals and Qube regarding after

hours bulk runs

Investigate obtaining data from other states on

overloaded containers

WA PORT OPERATIONS TASK FORCE

Executive Summary

March 2015

Trade statistics

January = 60,145 TEU 2.6% increase on January 2014, loaded

imports up 1.9% & loaded exports down 5.4%

February = 55,394 TEU 2.2% increase on February 2014, loaded

imports down 0.1% & loaded exports up 5.2%

13.8% of containers in February

transported via rail

If you have any questions or comments please contact Sophie Gillespie at sophie.gillespie@fremantleports.com.au

1

WA PORT OPERATIONS TASK FORCE

AGENDA & MINUTES - MARCH 2015

Date: 5th March 2015 Time: 08:00 - 10:00 Location: Fremantle Ports

Chairperson: Graeme Wilson Executive Officer: Sophie Gillespie Next Meeting: 1st April 2015

AGENDA SPEAKER

1 WELCOME/OPENING COMMENTS/APOLOGIES Graeme Wilson

2 CONFIRMATION OF FEBRUARY MINUTES Graeme Wilson

3 INCIDENT MANAGEMENT PLANS/MOU Main

Roads/Terminals

4 TRADE STATISTICS OVERVIEW Jennifer Hall

5 ROUND TABLE DISCUSSION

ALL

Container Terminals

WARTA

Transport operator

Freight forwarder

Shipping Australia

Empty Container Parks

Rail

Australian Customs and Border

Protection Service

Main Roads WA

6 CHAIN OF RESPONSIBILITY

Transport Operator Seminar

Overloaded Containers App

Michael Pal

7 IMPORTER WORKING GROUP 2015 PLAN Jennifer Hall

8 PORT REPORT Doug Brindal

9 GENERAL BUSINESS ALL

10 FUTURE SPEAKERS AND PRESENTATIONS

2

MINUTES ACTIONS

1 WELCOME/OPENING COMMENTS/APOLOGIES

Attendance and apologies - see table below

2 CONFIRMATION OF FEBRUARY MINUTES

No issues with February minutes

3 INCIDENT MANAGEMENT PLANS/MOU

MOU has arisen due to a number of incidents at the Port, resulting in Main Roads

and Fremantle Port needing to look into how incidents are to be managed.

Patricks Incident Plan

Overarching procedure broken up into different type of incidents which may occur.

Flow chart for each incident, including contact details.

Policy is to remove Patrick employees from the area and emergency services will

respond.

Patrick has first aid response capability.

Return to operations plan has been developed to resume to normal operations in a

timely manner including communications.

Communication to industry is key - Patrick looking to improve on this through

utilisation of the VMS, 1-stop etc.

TMA utilised for an incident that occurred recently which was successful.

DPW Incident Plan

DPW have in place - Emergency Response Plan, emergency contact lists and a

critical incident reporting process which is shared with Patricks and interstate

terminals.

DPW noted that the first thing that should be done following an incident is to

share information with Patricks so both terminals can improve processes.

Fremantle Ports/Main Roads MOU

Fremantle Ports reinforced that all sites have free access to the TMA for incident

situations

If there are blockages to the roads that's where MOU comes into place, including a

process for order of actions

MOU provides details about sharing of resources, does not really cover incident

control.

Fremantle Ports offering to resource some things to reduce lead time on Main

Roads resource deployment. Police and Main Roads will still send resources.

It was questioned whether it is possible to minimise the police footprint to clear

roads quicker. Main Roads noted that they now have processes in place to give

advice if roads should be opened.

MOU has not yet been formally endorsed but parties are currently working to the

provisions in the MOU.

It was questioned whether Fremantle Ports security should be the first point of call

(if no injuries) for action to be taken.

WAPOTF to follow

up on

communication

improvements with

Patrick

WAPOTF to discuss

arrangement

between terminals

with DPW

3

Need to consider different reactions of people and what is considered a serious

incident.

Fremantle Ports have direct contact details of police to discuss response and

resourcing.

Meeting to be coordinated to determine what the lines of communications should

be and the key messages to drivers.

Consideration needs to be given to passing on learnings from incidents to industry.

Consider adding an agenda item on incidents.

Investigate including incident contact details in new app

Sophie Gillespie to

coordinate meeting

re MOU and

communications to

industry

Consider

presentation on

Ocean Drover

incident

Peak Season

Working Group to

investigate Easter

volumes

4 TRADE STATISTICS OVERVIEW

Total trade up 2.2% compared to 2014 and 9.1% YTD

Loaded exports up 5.5% compared to the same period of the PY

Imports were down slightly (0.1%)

It was noted by attendees that January is a month where volumes are generally

down

Shipping Australia noted that volumes in March may be down due to service

changes and a decline in exports

Customs noted that volumes were down, as did Patrick

DPW reported steady volumes.

Peak Season Working Group to look into Easter volumes

5 ROUND TABLE DISCUSSION

Patrick Terminal

Year on year volumes only up slightly

Plans for moving forward however dependant on outcomes of terminal leasing

process

DP World

Looking at improvements to customer service, TTT's, breakdowns,

communications - aware that industry isn't happy with current performance

DP World representatives to attend Port Carriers Group meetings, e.g. 1-Stop

administrator

DP World noted the issues with measuring average TTT's - maximum TTT may be

unacceptable.

Currently have 26% market share - noted that with such a small share, TTT should

be 'outstanding'.

MUA EBA - continuing negotiations, still work to do to finalise the agreement. Part

A - national issues, Part B - local issues

Currently meeting with different companies to discuss what DPW are doing and

what can be improved.

Uptake of slots after 6pm uptake is minimal, which may be due to lack of business.

Once business increases after hours is where the opportunities are.

New crane will increase capacity and service vessels faster. 4-5 weeks of

commissioning.

4

EOI - advised by FP that DPW had made second stage.

Transport

Volumes high

Patricks performing very well - continue working with Terminals for improvements

with customer service, e.g. tagged run service - regularity, 24 hour service, need to

fine tune the services in preparation for next peak season.

Issues with Qube Tydeman

Australian Customs and Border Protection Service (ACBPS)

Customs merger - legislation went to parliament last week, expected to be in place

1 July 2015. Business as usual at CEF, higher policy level may see changes. May be

some issues with contacts etc, as the organisational structure is still being

developed.

Change of hours over during March to day shift only. Revised hours are: From 9-20

March due to operational reasons the CEF will be operating between 6am-2pm

Freight forwarding

Fairly steady January/February.

Concerns about TTTs at Qube Tydeman

Change to how brokers/freight forwarders interact with quarantine, may be some

teething issues.

Shipping Australia

Volumes reasonably steady

Patricks working well

Don't see much growth opportunity, volumes should be handled quite easily.

West Coast USA issues have been resolved - increase of hay out of the area back

into market may impact WA hay exports. West Coast port TTT's increased to 6

hours, with truck cycles reducing from 7 trucks a day to 1 in 2 days. Ships were

waiting 3-4 days to berth

Rail

Exports and overall volume soft in January. Second half of February saw volumes

strengthen. Forecast to get back to stronger volumes in March.

Rosslyn Hill recently transported final containers

Kalgoorlie train discontinued with everything going through Kwinana.

DPW back gate only used for exports, imports have to go out through front gate.

ILS and DPW to discuss - will take ILS trucks off the road.

Rear gate operations at Patrick going well (4pm - 6am) but still ramping up, 2

trucks at a time currently due to congestion issues however looking at changing

internal processes to increase this - with EBA coming up need to approach

carefully however looking at mid year for full operations. Increase trucks to 4 at a

time within the next month. Full operations would be approximately 4-6 trucks at

a time with current volumes.

Empty Container Parks

5

Qube Tydeman - moving some volumes out to reduce congestion and utilisation of

park. Two shipping lines and Rosslyn Hill have been relocated.

Reducing notifications during bulk runs, as well as a reduction in bulk runs.

Qube did have resources on the road monitoring trucks however issues with

safety.

On time arrivals being monitored at gate - send through yard however causing

congestion in the yard. Will start turning away trucks not on time.

Transport operators noted that bulk runs occurring at 14:00 has a major impact on

TTTs and that it is difficult to control on time arrivals due to the lack of control

over the unpack of containers (cannot guarantee when container will be

unpacked).

It was noted by empty container parks that notifications should be booked 24

hours in advance through ensuring that customers have adequate planning in

place.

WAPOTF to meet with Qube and Terminals in regard to after hours bulk runs.

Qube noted that there are generally issues before bulk runs.

Significant costs for transport and freight forwarders/brokers - difficult to pass on

cost to importers/exporters. Delays create costs in other parts of the chain, e.g.

missing terminal slots.

March will be fairly busy export wise, good to have bulk runs after hours to

minimise impact on busy month.

Main Roads WA

Recent 7 day operation including drug testing resulted in 28 positives and

negligible overloads.

Main Roads to discuss with FP about the use of TMA for MainRoads operation

coming up.

Toll

Weighbridge - utilisation remains low, rate decrease in line with feedback however

no increase in usage. CoR will hopefully increase utilisation.

New area operational - extended operational hours and looking to talk to DPW

about after hours access to the terminal. Projections in volumes for next few

months are quite high. No empty handling at this stage, currently handling staging

operations. 28th June full site to be completed.

6 CHAIN OF RESPONSIBILITY

CoR - in force April 27. Possibility that some systems won't be fully operational

however will be enacted on the 27th. Albany and Esperance road shows for

WARTA. Take up of training has increased as date is getting closer.

Seminar to be held 12th March - CoR and other items regarding safe operations at

the port, app etc.

Confirmed that empty containers do not require a CWD.

Transport noted that they are looking forward to improved standards as part of

CoR.

6

CoR App - developed as an alternative to brochures. May be used as part of

reasonable steps defence.

DPW - committed to understanding that terminals need to look at CoR however

due to the uncertainty around the future of the terminals they will not be looking

at a weighbridge inside the terminal until the outcome of EOI process is known.

Use of cranes and RTG's for weighing is possible however require an audit trail,

working through this.

Patrick have very similar issue.

BIMCO/IMO rule to be implemented in July 2016 will require all containers to be

weighed before going on vessel. Terminals will need to put in place process for

weighing of containers and exporters will be required to legally declare weights.

Critical issue for vessel stowage. Not all export boxes from Australia are weighed.

Issue with import boxes as well.

MainRoads to do some surveillance on weight issues to obtain an idea of what the

level of the issue is.

Main issue is with uneven loading rather than gross weight resulting in violations

on certain axle groups (from data in Sydney - request this data from Sydney).

Instability of weight in containers is also an issue.

DPW noted they have data on uneven loads. It was questioned what the

consequence of an identified uneven load would be - confirmed that the truck will

not be loaded until an evaluation is done. Need to look at how overloaded

containers can be identified, as it does not currently link to the documented

weight.

Declaration of cargo weight in 1-stop - MSC confirmed that every export box is

cross checked.

Patrick noted that identifying an overloaded container will come down to training

and operating awareness of heavy containers as cranes will easily handle heavy

weights. It was also noted that it is very rare to have issues with overloaded boxes.

Investigate

obtaining data

from other states

on weight

violations

7 IMPORTER WORKING GROUP 2015 PLAN

IWG 2015 Plan - meeting held a few weeks ago to develop plan for 2015.

Main focus will be on reviewing and refreshing materials that have previously been

developed by the group and evaluating how effective the initiatives have been.

A number of new items/initiatives are to be evaluated.

8 PORT REPORT

Port Community System has been a long running issue.

Next step is a meeting on the 17th of March in Sydney with key system providers,

e.g. 1 Stop, ContainerChain, customs, Cargotwise

9 GENERAL BUSINESS

Terminal rent hikes in Melbourne - real danger signals about the privatisation

processes. Third terminal operator in Melbourne put forward a bid with much

higher rental. Port Authority in process of being privatised.

Patrick and DPW (Melbourne) are next in line for an increase (from $15/m2 to

$125 m2). ACCC has in the past voiced concerns with privatisation leading to

increased charges.

7

Could have impact on the Victorian economy, business may get directed to

Sydney, however Melbourne has a monopoly on export trade, therefore the

increased costs will be passed down the chain.

Freight and Logistics Council - audit of capacity of internet and movement of data

to be undertaken. Will include an evaluation on the impact of internet access and

speed. Consider distribution of information/questions through the CBFCA, IWG etc

Phone base technology for tracking and monitoring truck movements - consider

presentation to the WAPOTF in April/May.

Age of vehicles and star rating of vehicles currently being examined.

Perth Freight Link - charging model currently being discussed, WAPOTF to be

involved.

Metropolitan Freight Plan to be released in next 6 weeks.

Sophie Gillespie to

follow up on

presentation

ATTENDEES

Adam Lebihan Intermodal Link Services Pty Ltd

Adam Williams Superscoop Transport

Alan Mason Department of Agriculture, Fisheries and Forestry

Daniel Lanza Toll Intermodal

Darrin Smith Intermodal Link Services

Doug Brindal Fremantle Ports

Elizabeth Schultink Cristal Pigment Australia

Gavin Dobb Qube Logistics

Graeme Wilson Indian Ocean

Haydn Hampel WA Road Transport Association

Jennifer Hall Fremantle Ports

John Kelderman Chamber of Commerce & Industry of WA

John Park Customs Brokers & Forwarders Council of Australia Inc. - CBFCA

John Ward DP World/AWH

Keith Hampson Curtin University

Lynette Gill Fremantle Ports

Michael Pal Fremantle Ports

Paul Bond Main Roads Western Australia

Peter Chesi Patrick Terminals

Ray U'Chong Jayde Transport

Robert Boyce Mediterranean Shipping Company (Aust)

Shaun Senior Australian Customs and Border Protection Service

Sophie Gillespie Executive Officer

Viv Hall Quayside Transport

APOLOGIES

Bob Hancock Container Cargo Specialists

Geoff Hack EES Shipping

James Sumpton Patrick Terminals

Mark Brownell Freight and Logistics Council

WA Port Operations Task Force: Report from Fremantle Ports

Meeting Date: 5th March 2015

1. Key Points of Note

Total trade up 2.2% compared to 2014 and 9.1% YTD

13.8% of containers in February transported via rail

Over 100 responses received to Transport Operator Seminar invitation

New Overloaded Container “App” in testing - release planned 12 March

Port Community System - System Providers Forum 17 March

2. Trade Statistics

Results for January 2015 indicate that total trade was up 2.6% for the same period of the

previous year (PY). Loaded exports were down 5.4% compared to the same period of the PY and

loaded imports were slightly up (1.9%).

Estimates for February indicate that total trade was up 2.2% for the same period of the PY.

Loaded exports were up 5.5% compared to the same period of the PY, and imports were down

slightly (0.1%).

Estimates for February indicate total trade YTD is up 9.1% compared to the 2013/14 FY.

January 2015 TEU Variance to 2014 YTD Variance to

FY13/14

Total 60,145 +2.6 +10%

Loaded Imports 30,631 +1.9 +6.6%

Empty Imports 1,261 -30.1% +70.6%

Loaded Exports 14,498 -5.4% +18.5%

Empty Exports 14,016 +19.9% -0.4%

February 2015 TEU Variance to 2014 YTD Variance to

FY13/14

Total 55,394 +2.2 +9.1%

Loaded Imports 24,936 -0.1% +5.9%

Empty Imports 1,262 -45.2% +50.2%

Loaded Exports 18,445 +5.2% +16.7%

Empty Exports 10,751 +14.7% +1.1%

Graphs comparing the 2015 calendar year against previous years are shown below:

3. Rail Market Share

Rail accounted for 12.7% of total trade in January and 12.8% YTD. Trade estimates for February

indicate rail accounted for 13.8% of total trade during the month and 12.9%YTD.

4. Truck Productivity Strategy (TPS)

The Truck Productivity Study identified a number of priority actions related to Container Terminal

operations and the VBS. The TPS Steering Committee recently met to prioritise and discuss these

priority actions.

A meeting was held with Patrick Terminal which highlighted that a number of priority actions had

been completed or closed on the basis that terminal improvements in the past 18 months had

resolved many of the major issues raised in the TPS. A few items remain and these will be

progressed with the Steering Committee and terminal.

Discussions with DPW have also highlighted some of the key initiatives being pursued at present,

and further discussions with local management will concentrate on the specific actions arising

from the TPS to develop an action programme. Further updates will be made available at future

Task Force meetings.

5. Projects & Studies

i. Importer Working Group

The Importer Working Group met on the 17th February to develop a strategic action plan for

the 2015 calendar year. The meeting highlighted some key points, which will be presented

during the March Task Force meeting, including:

- Existing initiatives, such as the Importer Guide, presentations to Freight Forwarders and Importers, presentations at CBFCA and similar conferences, and the Importer Newsletter are effective means of communicating information to importers

- Direct feedback on the above initiatives is required to ensure relevance to importers and gauge the effectiveness – short online surveys to be developed throughout 2015 to seek feedback

- A process of refreshing information throughout 2015 will be undertaken to ensure Importer Guide and presentations are up to date and maintain currency and focus on key issues

- New types of information transfer, such as online tools and material, will be identified and progressed throughout 2015

- A focus on accessing Freight Forwarders and their import clients to present information in targeted groups will continue

ii. Peak Season Working Group

The issues at Qube Tydeman continued in the early part of February. TTT, as determined

from the Congestion Management System, were still over 1 hour at the time of the previous

POTF meeting and for a few days afterward. Qube ceased using the Congestion

Management System shortly after the last round of data was discussed at the POTF meeting.

Most recently, observations by Fremantle Ports staff noted that TTT’s were still at 45-50

minutes at the time of the bulk run on 26 Feb. Generally, the observed TTT’s for Friday (27)

and Tuesday (3 March) appear to have dropped for the spot checks carried out. While some

have still been around 30 min., there have been a number around 20 min or less.

iii. Peak Season - Tydeman Trial

At the time of the completion of this report for distribution, there has been no follow up

data received from Qube from their Maximas/Containerchain systems, despite Qube

receiving the Port’s Congestion Management System data shortly after it was requested. It

is not possible to provide any further definitive information on Tydeman turnarounds and

other operational aspects in January until this data is received.

iv. TOLL Weighbridge

Despite the change of the charge to a flat rate for any combination of tare, gross and axle

weighs of $36, Toll are reporting lesser than expected take up of vehicle weighing. There is

an expectation that this would change with the finalisation of CoR implementation.

Nevertheless, industry is requested to support this valuable resource.

v. Toll Rous Head (Area B)

Toll have commenced operations at their Area B site on Manoora Close (next to the Truck

Facility in the Rous Head Industrial Area). They are currently carrying out container staging

operations, utilising new Materials Handling Equipment.

vi. Port Community System

Following the successful session of Key Stakeholders to discuss the future of a Port

Community System (PCS) back in December, it was agreed that a follow up action was to

bring together the System Providers (1-stop, Containerchain, Wisetech Global, Hitech and

Customs). The goal was to have these critical providers look into how they might work

together to take the idea of a PCS to the next stage.

This meeting has been agreed and arranged. It is to take place in Sydney on 17 March. The

main focus will be on the inputs the system providers believe they can provide, the outputs

that might be expected and an initial assessment of the benefits these might bring.

6. Compliance and Enforcement (Chain of Responsibility)

i. Transport Operator Seminar

The Transport Operator Information Session will be held on Thursday, 12 March 2015 at the

Royal Fremantle Golf Club from 14:30. This is a complimentary seminar to cover a wide range

of aspects of safe operation in the Port, as well as cover aspects of the introduction of the

regulations for CoR. Well over one hundred acceptances have been received.

The first presentations have been completed and are being put into the seminar template for

presentation.

ii. CoR - Overloaded Container Application

The application has now received approval for IOS (Apple) operation, meaning the application

has been accepted for all three major phone/tablet formats (Windows, Android and Apple).

Testing is being carried out this afternoon (Thursday 5 March) with the release at the time of

the Transport Operator Seminar on 12 March.

7. Empty Container Parks: ECP stocks and capacity utilisation

Container Parks’ stocks, as recorded on the 15th of each month, are shown in the table below

for February 2015. Overall stocks in February were at 75.6%, down from 85.8% in January 2015.

Qube Tydeman reported being close to capacity, where congestion can become an issue (as a

rule of thumb, this is roughly the 90% mark), and ICL 1 again recorded high utilisation.

Logistics Branch Fremantle Ports March 5, 2015