Time is now for Melbourne fast rail solution

 

 

Logistics and development business Salta Properties believes a rail solution to increased throughput is imperative before the nation’s largest container terminal goes under the hammer. 

Salta is one of many stakeholders to lodge submissions regarding the proposed port long-term lease of the port (ie privatisation).

Under the system advocated by the company, containers at the Port of Melbourne would be unloaded at a dedicated on-port rail facility before being railed to strategic inland terminals via fast freight trains and then trucked to final destinations.  The idea would be to ease heavy congestion in the port precinct.

In itself the concept is not new – it was previously mooted during the Bracks/Brumby Labor administration that governed Victoria between 1999 and 2010.  But Salta Properties managing director Sam Tarascio believes it should happen now, rather than wait until the port is in private hands.

Salta itself has land available for terminal development but speaking with Lloyd’s List Australia, Mr Tarascio said such a scheme would have positive outcomes for everyone - industry, government and the general public.

“So that means we can get a far more efficient container landside distribution logistics system,” Mr Tarascio told Lloyd’s List Australia.  “By doing that, we improve efficiency and improve capacity at the Port of Melbourne.”

He said the scheme had been supported by both sides of politics, albeit no-one had pushed it to development.

“It has come through the Liberal government and back to Labor and all have been supportive.  “We think now the time is right because all of the intermodal sites are now in place.

“There is infrastructure at the port that if the government acts quickly enough, they can protect for use as the metropolitan intermodal rail terminal.”

Mr Tarascio said there was a need for political will.

“The thing that is causing us frustration is that most of the hard work has been done. “The Footscray Road overpass and the train paths are in place and there has been money in the budget allocated.”

Rail infrastructure at the Port of Melbourne and minor rail connection works at the inland ports were allocated $58m in the most recent Victorian State Budget (some $38m from the Commonwealth).

“But for some reason it has been prioritised as something that should be done post-port sale.” But proceeding with the project before the sale had benefits, he argued.

“It should be done pre-port sale because of all the benefits it brings in terms of certainty to port bidders, potential upside in price to the government plus a whole lot of other benefits including environmental benefits and efficiency benefits,” Mr Tarascio said.

Environmental benefits are also arguably substantial.

“Based on current volumes, if you could convert the capacity of the network onto trains… you would take 3500 of 5500 trucks that go into the port precinct (daily), you would take them off the roads around the port precinct.

“That has enormous benefits in safety and in reducing pollution and congestion.  “Road maintenance costs are also reduced so there are a whole lot of benefits attached.”

Mr Tarascio said throughput estimates from both SALTA and others suggested a 1.4m teu capacity increase through the Port of Melbourne “so that’s very significant based on its current capacity”.  Most of the train paths are available, with dedicated freight lines to the west and north.

A south-eastern service would also operate on the existing passenger line, albeit it would have to operate outside of peak passenger periods.

 “We talk to importers, exporters and shippers and there are many businesses that are passionate about it,” Mr Tarascio said. “Trucking companies, believe it or not, are supportive because of the inefficiencies they face going into the port.

“They would prefer to be at a more efficient inland location where they can get more trips.”

He argued SALTA was well-positioned to contribute to the project.

“We can bring together the terminals in the south-east and the west on land that we have acquired specifically for the purpose and have had it rezoned and connected.

“In the north we are working with AUSTRAK who already have a terminal but just need better connections.  “The reason we’ve gone down this path is our background in both property and logistics over 45 years.”

Salta Properties chairman Sam Tarascio Snr identified about a decade ago that the Port of Melbourne was going to reach capacity due to landside constraints and started examining how those issues could be effectively resolved.

“Our main priority is seeing the short rail links into the inland ports are funded by government,” the younger Mr Tarascio said.  “Altona has been funded and is completed while we anticipate similar investment will be confirmed soon by government for Dandenong South and at the third inland port site at Somerton.”

Source: Lloyds List

How credit insurance can help exporters attract more buyers

The export industry in Australia is rich with opportunity. Yet for all the business and trade opportunities offered by the export market, international trade can present an exhaustive collection of risks to manufacturers, exporters, and freight forwarders. These include political, legal, exchange rate, and transfer risks, among many others.

In its Guide to Exporting, the Australian Trade Commission (Austrade) advises a number of steps businesses in the export industry can, and should, take to protect themselves. Austrade’s core advice is to develop a process of thinking systematically about all possible undesirable outcomes before they happen, and then setting up procedures that will either avoid or minimise these risks, or help exporters to cope with their impact.

One of Austrade’s core tips is to take out credit insurance. Regretfully, there are companies that do not have a policy. Perhaps the reason is because they are implementing the other steps advised by the government and believe they are safe. Perhaps they are simply unaware of what benefits insurance can provide, and the risks that it covers.

As Austrade suggests, credit insurance can provide a safe solution that will step in if all other precautions against risk fail. While credit insurance establishes a safety net in the event of disaster, it can also be used to help build new trading opportunities and can contribute to customer growth in international markets.

This might not seem immediately obvious, given that credit insurance generally doesn’t kick in unless something happens to a company’s business. However, the confidence credit insurance provides can have a knock-on effect in the way a business conducts itself in the market.

While a supplier is unlikely to explicitly tell existing or potential customers that it has purchased credit insurance to bolster its trading position, there are likely to be outward signs of the boosted confidence such a purchase can instil in an exporter.

First and foremost, an organisation is likely to feel more confident to trade in the market with the backing of credit insurance. If things go wrong, an exporter is covered financially. This effectively eliminates the possibility of major cash flow problems leading a company into financial difficulty.

As such, by using the additional resources provided by an external organisation, in this case, a trade credit insurer, an export business or freight forwarder can leverage extended financial utilities to help mitigate risks. Once risks are minimised, along with the costs associated with such risk, companies can begin to offer customers more favourable trading terms.

In fact, by reducing costs arising from risk management, companies can comfortably grant customers higher credit amounts, offer more competitive pricing, agree to longer payment periods, and permit more favourable payment methods, such as an open account instead of letters of credit.

Most importantly, having the backing of a trade credit insurance policy can help keep the flow of shipments moving, even if an involved party goes under. For example, one of the largest customers of a freight forwarding client of Atradius went into administration, owing just under AU$300,000.

Atradius reviewed the case and then negotiated with the administrator. They agreed on a deal in which the goods held as security by the client were released to the insolvent customer’s administrator. The administrator then guaranteed the payment of approximately AU$140,000 against the pre-administration debt. This is treated as a post ‘Date of Loss’ recovery when received and reduces the debt significantly.

Atradius was then able to settle the client’s claim 18 days after it was submitted, and the client has since been paid in full for the total debt.

The ability to offer protection such as this can be extremely valuable to companies wishing to expand their business and boost revenue. There are effectively three main ways for companies to do this: expand sales to current customers by introducing new products; attract new buyers in existing markets; and seek out new buyers in new markets.

The first of these options requires a company to research deeper into existing customers to determine whether they have the capacity to pay for larger or more frequent orders. The second requires a company to vet new buyers to confirm they are who say they are and that they can pay for their purchases on time. This is especially important for international markets.

The third option requires local knowledge of the new market’s business environment with its relevant trade practices and, of course, of the buyer itself. It requires a leap of faith by the exporter who needs to have the tools to identify reliable overseas buyers, obtain the finance to expand the sales to them and set up adequate protection for mitigating the risks of exporting.

Fortunately, companies that are prepared to look beyond their own resources to develop their export businesses can draw upon the added confidence imbued by a partner such as a trade credit insurer in all three of these expansion scenarios. The reduced risk minimises costs and eliminates the potential for losses, making it much easier for an exporter to make the changes to its business that will result in growth.

There are at least four main ways in which credit insurance can help a business attract more buyers: 

1.  Safe expansion into new countries and markets
Credit insurance lets businesses increase sales in existing markets by moving buyers from letters of credit to open account terms. This potentially means more sales and a lower cost of trade finance for the customer.

2.  Extended payment terms
Credit insurance guarantees businesses that they will be paid even if a buyer is unable or is refusing to pay. This means businesses can offer extended payment terms to customers without taking on additional risk.

3.  Increased credit lines with lenders
Trade financiers recognise the value of credit insurance on debtor portfolios. This can improve the cost of borrowing and increases the scope of business.

 

4.  Decreased credit management costs
Credit insurance provides a platform to generate more sales without taking undue risk. It helps businesses identify at-risk buyers and lets the sales force focus on new buyers that are most likely to add value to the business.

These are just four of the reasons organisations operating in the international export business should use trade credit insurance as a business tool to grow their customer base. As a starting point, the ability to implement more attractive trading terms can directly influence potential customers’ decisions when choosing which companies to do business with.

After all, why would an importer trade with a company that could be rendered bankrupt, or severely diminished by non-payment of a fellow customer? Such an event might leave a buyer at the mercy of a delayed shipment or, even worse, without a product to sell at all.

This is how trade credit insurance ultimately provides security for all parties involved, including financiers seeking to use policies as collateral for any pre-shipment or post-shipment finance. Having reliable buyers who regularly pay on time protects everyone in the supply chain.

Atradius is a provider of trade credit insurance.

UK’s FTA warns on box weighing

The Freight Transport Association has warned shippers that they need to prepare for new container weight verification rules that come into force next year.

The FTA said shippers could fall foul of the new legislation after July 2016 if they do not put measures in place to verify the gross mass of containers before shipment.

The International Maritime Organization has adopted amendments to the Safety of Life at Sea convention requiring every packed export container to have its weight verified before being loaded onto a ship.

“Shippers will be responsible for verifying container weights before loading and they need to be putting plans in place now to ensure they are ready,” said FTA policy director Chris Welsh. “Containers without a verified weight won’t be loaded onto container vessels from July 1, 2016.”

The IMO has specified that two methods of verifying weight are acceptable: either weighing the packed container using certified and calibrated equipment or using a calculated weight method, which involves summing the individual items separately, and adding the tare weight of the container and packing materials using an approved process.

The FTA has worked with the Maritime Coastguard Agency to develop an accreditation scheme for shippers using the calculated weight method of verification. The Accredited Shipper Approval Scheme will allow them to use approved audit-based systems to comply with the new rules.

“The countdown towards July 2016 is looming with nine months to go before implementation,” Mr Welsh said. “Shippers should now start discussions with their carriers and freight forwarders to set in place the logistics and communications systems to ensure compliance with the new rules and to avoid non-shipment and delays in the supply chain.”

The Shipper is responsible for verifying the weight of the container on the shipping  documents.

• Where PRAs are used to submit containers at the wharf, (all major ports) the PRA will be used to advise the verified weight of the container to the shipping line and stevedore.
• 1-Stop will adjust their PRA software fields to include the CVW and signatory name on the PRA
• AFIF emphasised that effectively under the new rules, the forwarder submitting a PRA on behalf of a shipper will be responsible for the verified weight. AMSA advised that if subsequently there is a discrepancy in the weight provided by the actual shipper and the forwarder relied on the verified weight supplied by the shipper (using method 1 or 2) to complete the PRA, then AMSA will investigate the circumstances to determine the responsible party.
• The forwarder will need to keep proper records to protect themselves from any audit discrepancies if an incident arises later.

There may be additional costs for shippers as the system will be less flexible, as the PRA has to be completed with the exact verified weight before the container is received at the wharf.

AFIF Observations

• More cost for shippers and forwarders in administration of CWV
• Increased risk for forwarders completing the PRA on behalf of shippers. Education and execution of obtaining and recording the CWV accurately by shippers and forwarders is crucial
• Transportation costs may increase using Method 1, so shippers could likely revert to Method 2 and calculate the CWV.

AMSA will deal with instances of non-compliance as they occur and treat them depending on the nature and seriousness. i.e. If it is a one-off incident or a pattern of incidents.

• AMSA will determine whether to educate, issue a warning, or a penalty notice for repeated infringements. Penalty is around $5,500 per instance.
• The National Heavy Vehicle Regulator addressed the meeting and outlined the Container & Heavy Vehicle National Law, including Section 186 & 187 penalties for false or misleading information in transport documentation or a Container Weight Declaration – Max Penalty $10,490.

It is possible a shipper could be hit with a ‘double whammy’ on both AMSA & NHVR transgression for an overweight container.

• The stevedores are adamant that they will not be weighing containers at the wharf.

AMSA plans to have the final directions document to industry by February with an education roadshow following. 

Western Sydney to get new Asciano intermodal terminal

 

Asciano (October 8) announced the development of a new intermodal terminal at St Marys in Sydney’s west as part of its plan to shift freight onto rail. It hopes to help reduce road congestion, improve customer service, and minimise double handling of containers.

St Marys will be designed to complement Asciano’s existing intermodal terminal operations at Chullora in Sydney. Longer term, this terminals will link at Parkes with the with the Federal Government’s inland rail project.  It will be a $100m, 43 hectare, 300,000 TEU, intermodal terminal on existing Asciano land.

“Asciano believes in a multi intermodal terminal approach to drive more freight onto rail from Port Botany, recognising that different Sydney freight catchments need different logistics solutions,” said John Mullen, Asciano’s Chief Executive Officer.

He continued, “This ‘constellation hub’ approach is focused on developing smaller, high velocity intermodal terminals in the major established freight precincts of Sydney, leveraging existing infrastructure to service freight owners where they have significant existing operations and sunk capital.”

“This new facility will provide rail shuttle capacity linked to Port Botany via the Southern Sydney Freight Line and the existing Sydney metropolitan rail network. In future, as this service grows, it will be critical for the New South Wales Government to work to deliver a new freight corridor linking the Southern Sydney Freight Line with Eastern Creek,” Mr Mullen said. 

Asciano will implement the strategy by selling an integrated ports and rail service, contracting with shipping lines and freight owners to stevedore to move freight out of Port Botany via its rail and intermodal terminal services.

“The ‘constellation hub’ strategy will minimise community impacts as well as capital investment by targeting existing freight precincts across Sydney,” Mr Mullen said.  “Shuttling freight between Port Botany and a Parkes rail terminal linked with inland rail will allow double stack rail operations around Australia and will take significant amounts of freight

heading north and south off Sydney’s arterial roads and passenger rail network,” Mr Mullen said. 

The announcement was made as part of the official opening of Patrick’s new Port Botany container terminal, featuring Australian-developed and world leading automation technology.

“Freight is a key issue affecting city planning and development and the establishment of efficient supply chains in our major cities is critical for Australia’s productivity and our living standards and is vital to ensuring that we take advantage of the Free Trade Agreements that the Government has signed. Logistics, the movement of freight, the movement of people, and making our cities work is very much at the heart of the new Cities portfolio,” said Jamie Briggs, Federal Minister for Cities and the Built Environment.

 

Dangerous Goods Acceptance at Malaysian Ports

Please be informed that authorities in Malaysia have decided to reinforce a law with respect to the acceptance of transhipment of IMO cargo in Malaysian ports. As a consequence, the acceptance of IMO classes 1 and 7 along with JPA class 2 for transhipment in Malaysian ports will cease with immediate effect.

In addition to this, all dangerous cargo destined to Malaysia or calling Malaysian ports in transit - even if not discharged from the vessel – must be accompanied by the following documentation (in English language):

• IMO class 1 requires a MSDS (material data security sheet) and a EUS (end user statement) if it transits via Malaysian ports.
• All other IMO classes require a MSDS if the vessel is calling Malaysian ports, this includes transit and transhipment cargo.

Please ensure that you or your overseas shipper/supplier submit the MSDS and EUS documents along with the hazardous cargo declaration, for pre-shipment approval.

For more information about dangerous goods and JPA classification, please refer to the following sites:

http://www.lpjpcs.gov.my/FAQdg.html#point6 

http://www.lpjpcs.gov.my/list_dg.aspx

PPlease be advised that following a recent Interpretative Decision by the AustralianTaxation Office (ATO), we wish to advise that GST will no longer be charged on Import Local Charges, as these fees form part of the supply of international transport. This change will be commence from December 2015.

 The full ATO Interpretative Decision may be view via the following link: -

 https://www.ato.gov.au/law/view/document?docid=%22AID%2FAID201526%2F00001%22

 

 Strengthening Trans-Tasman Trade

 

GST changes

agreeing to work towards the implementation of a Mutual Recognition Arrangement (MRA) during Australian Trusted Trader’s (ATT) pilot phase.

The Australian Comptroller-General of Customs, Mr Roman Quaedvlieg APM and Comptroller of NZCS, Ms Carolyn Tremain, signed a Statement of Intent in Canberra earlier this month to formally initiate the negotiation process. Both agencies will sign the MRA in June 2016 before its implementation from July 2016.

The MRA will ensure that members of the NZCS Secure Exports Scheme and ATT receive preferential border treatment and trade facilitation benefits when conducting trans-Tasman trade.

The aim of the MRA is to help increase both nations’ contributions to international supply chain security and trade facilitation. It is anticipated that the MRA will allow up to 13 per cent of New Zealand import volume to Australia totalling $3.0 billion to be facilitated, along with $7.5 billion of Australian exports by 2020.

This combined $10.5 billion of trans-Tasman trade facilitated and secured through the MRA demonstrates a significant return on investment that will increase the international competitiveness of industries in both countries.

This is a key milestone and a show of confidence in the ATT by the NZCS, which has signed and implemented MRAs with the United States, Japan and Korea.

The ATT’s pilot phase is progressing well, with the number of pilot partners growing from the initial four companies to twelve across the country.

The new pilot partners are Apple, Fletcher International Exports, Hewitt-Packard, IKEA, IBM, Matrix Composites, Pacific Brands and Target.

These companies join existing partners, Boeing Aerostructures Australia, Devondale Murray Goulburn, Mondelez Australia and Techwool Trading.

CPSU cargo-handling strikes to intensify – and extend

Members of the Community & Public Sector Union who are employed by the Department of Immigration & Border Protection will strike for two days being Monday December 7and Tuesday December 8.

A union-ban will be in force on adhering to risk assessing models for inspection, screening, examination and/or searching of cargo, mail or baggage (excluding passenger baggage), resulting in a higher number of inspections, screenings, examinations. There will also be a ban on releasing goods or cargo after assessment, inspection or examination.

The bans will run from 00:00 on Monday and will end at 24:00 on Tuesday (i.e. 48 hours).

CMA CGM sole bidder for NOL as Maersk drops out

 

CMA CGM is now the sole bidder for Neptune Orient Lines, the Singapore company said at the weekend just hours after the French line became the latest container line to post a steep drop in third-quarter earnings, with net profit sliding 75% to $51m.

NOL said in a statement to the Singapore stock exchange on Saturday that CMA CGM had until December 7 to complete the due diligence process, and that there was no guarantee that a transaction would follow.

CMA CGM issued a brief announcement on Sunday morning saying that it had entered into exclusive discussions with NOL and Lentor Investments, a wholly-owned subsidiary of Temasek, its controlling shareholder, "with respect to a potential combination with NOL".

Should the discussions lead to an agreement, "such a combination would contribute to the consolidation of the container shipping industry, at a time when scale is more critical than eve," CMA CGM said.

"It would further reinforce CMA CGM as a global force in container shipping, leveraging the strong geographic and operational complementarity of both groups."

The French line has been seen as the frontrunner for several weeks, but Maersk also entered into preliminary discussions about buying NOL, which operates its container activities under the APL brand.

Both CMA CGM and Maersk were named by NOL has prospective buyers in a stock exchange notice a couple of weeks ago. But whereas CMA CGM has made no secret of its interest in further acquisitions, Maersk has insisted that its preferred strategy was organic growth.

The news broke soon after CMA CGM had joined the ranks of carriers with sharply reduced profits in the latest quarter. Maersk also suffered a steep drop in profits in the latest quarter.

CMA CGM's Revenue was down 9% to just under $4bn while volumes carried rose 3.4% to 3.3m teu.

The French line warned that the fourth quarter was also likely to remain weak, but said the market should rebalance during 2016.

“The container shipping sector is facing lower-than-expected volume growth, putting pressure on freight rates for many lines in the short term. Against this backdrop, the group is continuing to make various capacity adjustments in order to maintain satisfactory load rates and optimise the use of its vessels,” CMA CGM said.

The downturn comes amid some of the worst trade conditions ever experienced in the container trades, with freight rates at record lows as ship supply overwhelms demand. The latest Shanghai Containerised Freight Index showed another sharp fall in China-north Europe spot rates over the past week to just $295 per teu.

However, CMA CGM’s nine month performance was better, with net profit gaining 56% to $613m. A total of 9.7m teu was carried, up 6.5% on the January-September 2014 period..

Despite the sharp fall in freight rates, consolidated revenue came in at $12.1bn, CMA CGM said, down just 3.3% on the same period of last year.  Core earnings before interest and tax climbed almost 40% in the nine months to $889m against $638m a year earlier, lifting the core ebit margin to 7.3%.

CMA CGM also said it had redeemed bonds that had been due to mature in 2017 and 2019 out of proceeds from its June 2015 bond issue. But no mention was made of the imminent expiry of convertible bonds held by Turkish investor Robert Yildirim who has said he intends redeeming these rather than converting his interest into CMA CGM shares.

 

In a review of the third quarter, CMA CGM said it had outperformed the market average “in an industry shaped by a sharp fall in freight rates and overcapacity in certain markets”. Freight rates were especially weak on certain sectors, including the Asia-Europe trades, but elsewhere trades such as transpacific routes continued to benefit from a better balance between supply and demand.  CMA CGM, a member of the Ocean Three alliance alongside China Shipping and United Arab Shipping Co, said it had adjusted its capacity accordingly.

Cosco and China Shipping merger could get Beijing approval year end

Cosco Group and China Shipping Group are likely to receive the go-ahead from Beijing for their merger draft plan at the end of this year, according to a source familiar with the matter.

After receiving approval, the two giants and their subsidiaries will begin to restructure their debts, and a formal announcement about the consolidation can be expected early next year, the source said.

Many observers have reckoned that both companies will merge their container shipping businesses first, due to the economies of scale which can be created in the sector.

The source however, said the two state-owned conglomerates might start merging their different segments, including bulker, tanker, boxship and ports all at the same time, though Beijing will still have the final say.

“There are many difficulties to be resolved," the source said.

The listed units of Cosco and CSG, including China Cosco Holdings and China Shipping Development, collectively suspended the trading of their shares in August shortly after ship.sh, a Shanghai-based shipping website, disclosed that the two conglomerates had jointly set up a working group to iron out a draft merger plan.

On September 16, the listed subsidiaries extended their stock trading suspensions and noted that their parent groups were planning significant events that involved asset reorganisation. Later that same day, a person close to the State-owned Assets Supervision and Administration Commission of the State Council told local media that the draft plan had been completed and was under review by Beijing.

Shanghai-and Hong Kong-listed China Cosco and other listed units are now expected to lift trading halts on their shares before November 16, according to earlier exchange filings. But the source said there will likely be more extensions.

These units held shareholder meetings on Monday to discuss “issues related to the trading halts on their stocks”, but did not disclose when their shares will begin trading again.

Guo Huawei, board secretary of China Cosco told shareholders during the meeting that “the reorganization plan is still under study.”

The Shanghai Stock Exchange last Friday released an exposure draft set to better regulate information disclosure of listed companies involved in asset organisations. 

In the draft, the bourse proposed that the trading halt on a company’s stocks for such purposes shall not exceed five months under normal circumstances.

UASC says formation of mega carrier will not affect its China Shipping vessel sharing

The impending merger of China Shipping Container Lines and Cosco is expected to trigger another alliance reshuffle, but United Arab Shipping Co president and chief executive Jorn Hinge says it will have no bearing on its big ship partnership with CSCL.

While he fully admits that it will undoubtedly have an impact on the Ocean Three consortium in some shape or form, Mr Hinge said that the pair’s string of 18,000 teu-19,000 teu ships will be rolled out as planned on the Asia-Europe trade, while the carriers' joint operations on other routes will continue.

“China Shipping and UASC will continue to share a number of assets on many trades, which of course complicates matters if we are not part of the same alliance but it is not impossible,” he said.

The long-term agreement, as part of the lines’ Ocean Three obligations, is for a total of 11 ships in this class range with CSCL supplying five vessels and UASC the other six.

Mr Hinge said that the remainder of these behemoths from either carrier are due to be delivered by the end of 2016, regardless of the merger. UASC currently has three vessels in service with another due to hit the water before the end of 2015, while its final two are expected to follow in January and February of next year respectively.

Given UASC’s strong and long lasting relationship with CSCL, cemented by their vessel sharing agreement, Mr Hinge believes that the Dubai-based carrier will continue to co-operate with the Chinese mega carrier if indeed the partnership does come to fruition, a scenario he fully expects.

In terms of the future of Ocean Three, however, he is as in the dark as the rest of us as everyone is waiting to see how the Cosco/CSCL deal pans out.

Mr Hinge points to how the merger will impact not just Ocean Three but also the CKYHE alliance with Cosco being a partner, while the potential takeover of APL by Maersk Line or CMA CGM will affect the G6 Alliance.

“I think it is very likely that there will be a reshuffling of the alliances as we saw before,” he said.

Before talk of the Cosco and CSCL merger emerged earlier this year, there were murmurings of Hamburg Süd potentially joining the Ocean Three party.

If there is to be an alliance shake-up then Mr Hinge says that UASC is still very much open to teaming up with the German carrier.

“There is always talk and it may even happen one day, who knows, but for now we don’t even know what will happen next year and who is going to join whom.

“We have a fantastic relationship with Hamburg Süd and we certainly want this to continue in the years to come.

“We have a very strong co-operation now whereby Hamburg-Sud takes slots on the east-west trades and we take space on the north-south and can we expand that co-operation.

“In this world never say never. We get on very well so why not?”

Qube announces Asciano takeover plan

A formal takeover plan of Asciano by Qube Holdings has been announced.

The proposed deal was confirmed by Asciano on the stock exchange (ASX) , just before the company’s annual meeting in Melbourne in November.

Under the proposed deal, Qube, together with financial backers Global Infrastructure Management, LLC (GIP) and Canada Pension Plan Investment Board (CPPIB) has submitted a proposal to acquire all issued share capital of Asciano not already owned by the Consortium for A$9.25 a Asciano share.

If successful, Asciano (under GIP/CPPIB ownership) would continue to own and operate its bulk, automotive and port services business pending a sale process.

Qube will seek to acquire other remaining assets, subject to ACCC review.

According to the Asciano statement, Qube believes the transaction “would be genuinely transformational for Qube and the Australian transportation market, realising significant synergies for Qube shareholders as well as the broader logistics chain”.

“The implied value of $9.25 per share under the Proposal is 15c per share above the implied average value of the Brookfield offer of $9.10 since entry into the scheme implementation deed between Brookfield and Asciano on August 18, 2015,” the Asciano statement read.

Qube has made plain its opposition to the proposed Brookfield takeover of Asciano, something that was to have been voted on following the Asciano annual meeting.

That vote has been delayed indefinitely, giving shareholders time to consider the competing proposals.

Fremantle Ports prepares for peak season box build-up

Fremantle Ports has made recommendations to transport companies and published a Peak Season Guide to help alleviate congestion over the peak Christmas period.

WA Port Operations Task Force chairman Graeme Wilson is urging transport companies to book their container collections from the North Quay terminals as soon as possible, saying booked slots might become harder to come by as it gets closer to Christmas. 

“Although there has been a slow start to the season, current indicators highlight the need for extra vigilance this peak season,” said Mr Wilson.

He said that transport companies should make preparations now to arrange tagged / stack runs from the container terminals; prepare fleets and staff to take advantage of later slots available for booking as a result of recently-extended hours at Empty Container Parks; talk to clients about after-hours access or opening arrangements for importer premises over the Christmas period and be aware of detention charges. 

And, Mr Wilson said that transport companies should get in touch with shipping lines as soon as possible to negotiate extensions if delays seem likely.

Meanwhile, Fremantle Ports’ Peak Season Guide is available online and highlights ways to get through the peak season successfully, without incurring delays and associated extra costs. 

This includes details on how transport operators can make use of the stack runs at the DP World container terminal or tagged runs at the Patrick Terminal.

The WA Port Operations Task Force has also been urging importers to place their Christmas orders early to ensure timely deliveries. 

“With increased communication with importers, we hope that the message has been heeded to avoid congestion, delays and disappointments,” said Mr Wilson.