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«Break Bulk Shipping Study TABLE OF CONTENTS List of tables List of Figures Executive Summary 1 BREAK BULK CARGO 1.1 Definition 1.2 Types of Break ...»

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50  9.4.2 Shore-based Infrastructure Development Initiate a more cooperative and collaborative approach to involve importers/exporters, shipping agents, stevedores and trucking companies, who have no formal contractual relationship with a port, to put forward suggestions that would contribute to improving the overall productivity of ports particularly in the break bulk sector. It does not appear that any of the Australian port authorities provide a genuinely representative platform for fostering this level of communication among parties involved with break bulk shipping.

This would provide a wider understanding of infrastructure needs and the constraints that need to be overcome to meet these needs.

As noted earlier in this report, the availability of undercover storage for weather sensitive cargoes is one example of a problem that exists at many ports. In this respect it is worth while highlighting some features of portable temporary warehouses since none of the Australian ports appear to have considered or used them before. According to suppliers, the installation time for an 1850m2 temporary warehouse is 10-14 days. In addition to its faster construction period, it provides reliable protection for vulnerable cargoes. The temporary shed also offers flexible, ease and convenience during the time of relocation. The suitability of these structures is of course, subject to the availability of suitable land in the port area accessible to vehicles and the ability to withstand prevailing weather conditions.

9.4.3 Competition in Stevedoring/Terminal Management

Comments have been made by shipping lines and importers about the inadequate level of service stevedoring companies provide but more often about the operation of terminals that operate at ports adjacent to the berth where the ships discharges. This is a difficult area in which to make suggestions for improvement as the services provided by the stevedore – working the ship, and the terminal operator receiving and delivery the cargo, are the subject of either a contract between the ship operator and the stevedore or between the stevedore and the terminal operator. In most main ports there is no choice of terminal operator when the berth and cargo area is leased from the port authority.

One idea could be to encourage port authorities to consider the benefits of competition and in cases where new port developments that will cater for break bulk cargo are planned, to ensure that competitive lessees receive full consideration.

9.4.4 Port Costs In most cases Australian ports are basically owned by Government corporations or statutory bodies. However, as the owner of ports, governments tend to aim at achieving two incompatible goals—maximise ports’ profit (to achieve positive financial performance and sufficient infrastructure development funding) and to maintain low port charges to facilitate trade at the same time. Therefore, government should clearly articulate the trade facilitation role of ports in order to establish strategies that would lead to lowest port charges coinciding with adequate financial performance and sufficient funding of ports.

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When considering changes to charges, port authorities should be required to provide sufficient notice of planned changes. This requirement should also extend to private providers of port services – towage, pilotage and linehandling whose charges should be included in cost comparison exercises.

Port activity has a largely unrecognised multiplier effect in terms of business generation when considering the various services that depend on the port. This justifies wider government recognition, at all levels, of the contribution that the port business makes to the Australian economy.

9.4.5 Skilled Labour Supply Due to the nature of much break bulk cargo, it is recognised that difficulties arise in ensuring sufficiently skilled workers are available when required. This is up to the employer to determine and it is only with adequate communication between the ship operator and their contracted stevedore that future requirements can be planned.

The deployment of suitably trained employees extends also to the implementation of adequate security at terminals to ensure that the opportunity for theft is minimised and the risk of wrongful release of cargoes through limited checking, is eliminated.

9.4.6 Development of Key Performance Indicators The majority of Australian ports have developed Key Performance Indicators (KPIs) to quantify and verify their service performance e.g. a customer satisfaction survey in Fremantle and a ship queuing indicator at Port Kembla. However, the setting of appropriate KPIs is a subtle and sophisticated activity, which needs to take the trade-off between various performance indicators into account. For instance, it is often possible to reduce ship operation hours by adding more cranes, and hence increasing port charges. Therefore, port authorities should make a careful choice of KPIs which lead to trade-off of various indicators consistent with customer satisfaction and the efficient operation of the port.

The KPIs used for the current assessment of performance targets are self performance KPIs where performance of the port is compared against itself over a period time or a predetermined target to identify the improvement in performance. However, it is not that easy to ensure that the measure is valid, workable, practical and a realistic indicator of performance.

Further research and design of industry performance KPIs is needed enabling a port’s performance to be compared or ranked against national or even international benchmarks. The assessment of KPIs will have real value only if the results are publicly available and are used to improve port performance.

52  9.4.7 Supply Chain Considerations Ports are integrated into international supply chains and the ability of some ports to achieve a higher level of the seamless movement of cargo through the port varies considerably.

Implementation of the above recommended areas for improvement will greatly assist break bulk shipping in fully meeting their customer’s requirements for the long term seamless delivery of cargo. In addition, they will encourage port authorities to upgrade infrastructure planning and development with the objective of removing current port user dissatisfaction with port congestion, and berth availability, inadequate labour supply, lack of skills and limited storage facilities.

An effective system could be designed to provide a platform for facilitating information exchange, promoting collaborative problem-solving activity and fostering cooperative action in pursuit of a common objective. This could be in the form of a communication platform where all those involved in the cargo movement e.g., importers, shipping lines, trucking companies, stevedores as well as government agencies, have access to up-todate information such as the availability of cargo, receival/delivery times etc. The platform could be designed to link the operation of port service providers as well as port users, resulting in the efficient operation of the port as a shared responsibility. The system could be designed as a broad-based and free flowing electronic platform to promote efficient communication among various parties. This will make an important contribution to the seamless movement of cargo through the port. SAL’s promotion of port based data community systems is consistent with this policy objective.

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AAT Australian Amalgamated Terminals Pty Limited AAL Austral Asia Line Pty Ltd GAC Gulf Agency Company (Australasia) Pty Ltd ISS Inchcape Shipping Services Pty Ltd ITI Innovative Timber Ideas MSA McArthur Shipping & Agency Company Pty Ltd NYK (Nippon Yusen Kaisha) NYK Line (Australia) Pty Ltd PCC Pure Car Carrier PCTC Pure Car and Truck Carrier POAG P&O Automotive and General Stevedoring PBC Port of Brisbane Corporation PoMC Port of Melbourne Corporation PKPC Port Kembla Port Corporation POST Pacific Orient Sea Transport WWL Wallenius Wilhelmsen Logistics 58  12 Bibliography Breakbulk Conferences (n.d.). Breakbulk.com, www.breakbulk.com/content/?page_id=4.

Barnard, B. (2007). "Sunny days for breakbulk", Journal of Commerce, 19 March, 2007 from ProQuest 5000.

Barnard, B. (2008). "Breakbulk Summer Handbook", Journal of Commerce, Summer www.joc-digital.com/joc/breakbulk_summer2008/?pg=14.

Bird, A. (2009). "SPA: Container volume down; break bulk volume up", McClatchy Tribune Business News, 17 March, 2009 from ProQuest 5000.

Brooks, C. (2009). "Breakbulk ports directory", Journal of Commerce, Fall 2008 from ProQuest 5000.

DPA. (2008). "Annual Report-2008" from www.dpa.wa.gov.au/publications.asp?list=A.

DPA. (2008). "The Dampier Development Plan" from www.dpa.wa.gov.au/ppd.asp.

Dynaliners (2009). Breakbulk Trades, Dynaliners Trades Review 2009. pp. 43-44.

Ferrulli, G. (2007). "Mid-year report", Journal of Commerce, 4 June, 2007. Retrieved 13 April, 2009, from ProQuest 5000 GlobalSecurity.org. (n.d.). "Break-Bulk Cargo" from www.globalsecurity.org.

Horibe, K. (2008). "Capacity, service, rates, containers among big challenges facing breakbulk industry in Canada", Canadian Sailings - Transportation & Trade Logistics, 9 September, 2008 from www.canadiansailings.ca/Archive/tabid/120/selectedmoduleid/500/ArticleID/16 133/Default.aspx.

Leach, P. T. (2007). "Heavy Lifting", Journal of Commerce, 29 January, 2007 from ProQuest 5000.

Leach, P. T. (2008). "Garage Sale", Journal of Commerce, 13 October, 2008 from ProQuest 5000.

Lloyd’s Register Fairplay (2009). "World Bulker and General Cargo Fleets to Grow As New Ships under Construction Are Delivered From Shipyards", 19 March, 2009 from www.lrfairplay.com/About/Company_news/SB_Market_forecast.html.

MarineTalk. (2009). "Bulker and General Cargo Fleets Expected to Grow", 6 May, 2009 from

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McLymont, R. (2008). "Chinese takeout", Journal of Commerce, Fall 2008 from ProQuest 5000.

"Newcastle Trade Heading for Another Strong Year" (2009), media release, Newcastle Port Authority, 20 April.

Nodar, J. (2008). "Fair Wind Journal of Commerce, 18 August, 2008 from ProQuest 5000.

NPC. (2009). "The Port of Newcastle Trade Statistics." Newcastle Port Corporation from www.newportcorp.com/site/index.cfm?display=111694.

PBC. (2008). "2007/2008 Annual Report" from www.portbris.com.au/corporation/publications/annual_reports.

Plume, J. (2006). "Growing market, shrinking fleet", Journal of Commerce, 29 May, 2006 from ProQuest 5000.

PoMC. (2000). "Port of Melbourne Annual Report 1999-2000" from www.portofmelbourne.com/publications/annualrep.asp.

PoMC. (2008). "Port of Melbourne Annual Report 2007-2008." Retrieved 8 March, 2008, from www.portofmelbourne.com/publications/annualrep.asp.

"Project Shipping in Aisa feels the pinch" (2009). of Commerce, 26 January, 2009 from www.breakbulk.com/content/?p=434.

Fremantle Ports (2006). "Annual Report 2005-2006" from www.fremantleports.com.au/About/OurBusiness/3678.asp.

Fremantle Ports (2008). "Annual Report 2008" from www.fremantleports.com.au/About/OurBusiness/AnnualReport.asp.

Flinders Ports (2009). "Port Statistics"from www.flindersports.com.au/portstatistics2.html.

Port of Rotterdam (n.d.). from www.portofrotterdam.com/en/news/events/4thbreakbulkeropeanconferenceande xhibition.jsp.

SAL Breakbulk Working Group (2009). Minutes of Meeting of the Breakbulk Working Group 10 February, 2009, Shipping Australia Limited.

SSMR (2008a) "World Container and General Cargo Shipping", ISL Shipping Statistics and Market Analysis (SSMR), iss. 5/6 from www.isl.org/products_services/publications/pdf/COMM_6-04_short.pdf.

60  SSMR (2008b) "World Merchant Fleet", ISL Shipping Statistics and Market Analysis (SSMR), iss. 1/2 from www.isl.org/products_services/publications/ssmr.shtml.en.

The Port of Townsville, (2008). "2007-2008 Annual Report" from www.townsvilleport.com.au/annual_reports.

UNCTAD (2008). "Review of Maritime Trasnport 2008", New York and Geneva, UNCTAD secretariat.

United Media Group (n.d.). Retrieved 12 April, 2009, from www.joc.com/about.

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