New Victorian Government raises prospects for Bay West box terminal
Identifying the best location of Victoria’s second container port will be one of the newly-elected state Labor government’s first projects, with Labor preferring apparently favouring a location at what has become known as ‘Bay West’. Infrastructure Victoria – a standing, independent expert body – will be established to provide advice on potential infrastructure projects and possible locations for the new box port. Former shadow ports minister Natalie Hutchins said recently that the exact location of a port would be decided after a full investigation weighing up all options, including a business case and environmental assessment.
Ms Hutchins said a container port at Hastings would cost the Victorian economy in terms of productivity, jobs and competitiveness, and would double the cost of moving freight. But the industry seems nonplussed about the location and more bothered about the timeline for this new container port with the Australian Peak Shippers Association’s (AUSPSA) Robert Coode telling Lloyd’s List Australia that whether it’s at Hastings or Bay West, it needs to be done because “we’re running out of time”.
“They’ve also got to start thinking seriously about doing something about trucks and containers being able to get onto Melbourne wharf.
“This is an issue that the Labor government has said it will work on.
“At the moment, rail into the wharf is pretty much non-existent,” he said.
“We’re happy to work with the government on any issues and as far as the new port is concerned – just get it sorted.”
Lloyd’s List Australia asked the Port of Melbourne for comment and was told: “We have nothing to say”, by a spokesperson.
And the Tasmanian Logistics Committee’s Steve Henty said: “As far as we are aware, there will be no changes to the Port of Melbourne. Hastings or Bay West won’t occur for a long time and Bass Strait vessels all dock through the Port of Melbourne.” Ports Australia CEO David Anderson said simply: “We trust the new Victorian government will bring certainty to transport and freight planning within Victoria.”
Source: Lloyd’s List
Tasmania signs up with Swire Shipping
Tasmania’s Liberal government has signed a memorandum of understanding with Swire Shipping to negotiate a direct international container shipping service from the island state. Minister for infrastructure Rene Hidding said Singapore-based Swire was selected after careful consideration from a range of expressions of interest and much work with the shipping industry. A direct service will assist many Tasmanian businesses with both import and export freight. It will also provide direct port access to important Asian markets, he added.
Lloyd’s List Australia reported that many Tasmanian exporters, though welcoming the policy, believed an extension of the Tasmanian Freight Exchange Scheme (TFES) to cover all exports would be more beneficial.
“From day one, the Tasmanian government has been lobbying the Australian government for an extension of the TFES to all north-bound freight at the current rates of assistance,” said Mr Hidding. “This would cost the Australian government around $25m extra per annum but [it has] made it clear that no new money is on the table.”
Meanwhile, Swire Shipping has stated that a revised and enhanced shipping schedule from north Asia into Australia and Papua New Guinea has been implemented. It has been designed to ensure an improved delivery time of cargoes to Australia and PNG, the company said. A Darwin port call has been added to the schedule which includes Port Moresby, Brisbane, Newcastle, Geelong and Bell Bay.
JAEPA became a reality on January 15, 2015
JAEPA, the Japan-Australia Economic Partnership Agreement, entered into force on January 15 bringing with it an immediate round of tariff cuts. The first tariffs on the cutting block are the “vast majority” of Australia’s fruit, vegetables, nuts and juice, worth $114m in 2013/14. For example tariffs on macadamia nuts (exports worth $17.6m in 2013/14), and asparagus ($13.5m) will be eliminated immediately.
Tariffs on lobsters, crustaceans and shellfish will also be eliminated from January 15, so to the tariff on bulk wine. Plus an immediate tariff elimination and reduced levies for high-polarity (international standard) raw sugar. Another round of cuts will come into force on April 1, with further phased reductions to take place annually from that date.
Australia-Japan Foundation chair Murray McLean said this agreement provides major market access gains for Australian exporters and signals a “significant elevation in the remarkable and long-standing commercial relationship” between Australia and Japan. “Australia and Japan enjoy a partnership of tremendous closeness that has both economic and strategic importance,” he said. Mr McLean said Japan has been a “crucial mainstay” of the Australian economy since the bilateral Agreement on Commerce of 1957 signalled the beginning of a modern trading partnership.
Japan is Australia’s second-largest trading partner with total two-way goods and services trade in 2013/14 amounting to $72.2bn. Japan is also Australia’s second-largest export destination with Australian goods exports to Japan reaching $49bn in 2013/14. Top goods export commodities include liquefied natural gas, coal, iron ore and concentrates, beef and copper ore and concentrates. In 2013, Japan was Australia’s third-largest investor with investment stock of $131.0bn and Australian investment stock in Japan was at $50.2bn, making Japan Australia’s sixth largest investment destination.
North Asia-Australia lines book blank sailings for first-half 2015
Maersk Line and 18 other ocean carriers serving the North Asia-Australia trade will cut back on capacity with a number of blank sailings through to July 2015. As part of the Asia Australia Discussion Agreement (AADA) slack season program, the capacity adjustments will be made in order to “improve operational efficiencies and ensure a sustainable trade,” according to Australian-owned logistics company CEO Global Group.
“Consortiums decided to pull out on average 15% capacity from early December 2014 to week 29 from China, Hong Kong, Taiwan, Japan and Korea to/from Australia,” the company said in a statement. Members of the voluntary discussion forum AADA include ANL Singapore, APL, China Shipping Container Line (HK), Cosco, Evergreen Line, Hamburg Sd, Hanjin Shipping, Hapag-Lloyd, HMM, K Line, Maersk, MSC, MOL, NYK, OOCL, PIL, TS Lines, Yang Ming and Sinotrans Container Lines.
Additionally, AADA members have agreed to adopt a voluntary, non-binding rate restoration program of $500 per teu and $1000 per feu from April 2015 or at annual contract renewal, whichever is earlier. And the rate restoration for semi-annual contracts will be $300 per teu and $600 per feu from April 1, and again from October 1. Additionally, prior to the end of 2014, AADA members announced a bunker surcharge of $375 per teu and $750 per feu from January 24, 2015 for all Asia-Australia FCL shipments.
PORT CRISIS WORSENS
Eight months since contract talks began and after more then two months of ILWU work slowdowns West Coast ports are on the brink of complete gridlock. As of January 15, 2015 In Long Beach/Los Angeles no night time work will be conducted due to lack of skilled labor. This will undoubtedly extend berth times and will further add disruptions and delays to the already troubled schedule. While alternative routing through the Gulf and East Coast ports may also face some delays at this time it is strongly suggested that any urgent cargo is routed away from West Coast ports as we expect conditions to worsen still as PMA and ILWU play chicken with the US Economy.
Container truckers are sitting in line at Long Beach port for up to 19 Hours to pick up empty containers, as there is no compensation for waiting time they are working at a loss with a local move only reeling in a few hounded dollars. Many drivers are now refusing to service the port causing a severe shortage and causing further delays.
