Contents

Forewords

Features

Countries

Products & Services

Credits

Site Map

The Hon John Anderson MP, Deputy Prime Minister and Minister for Transport

Shipper Nation

Australian shipping and port policy developments help its industry remain globally competitive, writes the Deputy Prime Minister

Australia’s port efficiency is generally recognised as achieving world’s best practice. This has been the case for bulk port performance for some time, while over the past few years the major container terminals have been achieving stevedoring productivity levels suitable to their size and trade mix.

Despite these improvements, the interface between ports, road and rail is an area of increasing attention because of the forecast growth in trade. For example, total container traffic is expected to increase by 66% across Australia’s mainland ports by 2010/11.

AusLink and port infrastructure
A key policy area that seeks to address this issue is through the initiatives outlined in the federal government’s discussion paper AusLink – Towards the National Land Transport Plan. AusLink will place greater emphasis on improving land transport links to major national ports, in order to promote better logistics flows, trade and economic growth. AusLink will seek to develop a long-term National Land Transport Plan, enabling infrastructure needs like port access to be identified, properly planned and jointly funded by governments and the private sector.

Boxed in: container traffic needs rail track and inland terminals

An example of how this may work is illustrated in the AusLink green paper, where the strategy identified by a number of mainland container ports is to raise their share of container traffic carried by the rail network. However, without dedicated freight rail track or supporting inland container terminals, the implementation of such strategies would be remote. AusLink aims to facilitate the development of this infrastructure. A white paper finalising the AusLink policy direction and programme is expected to be released by the government in the middle of 2003.

Australian Logistics Council
In May 2000 the Freight Transport Logistics Industry Action Agenda was announced, as a part of the government’s policy to ad-dress impediments in the industry, and capitalise on opportunities to achieve sustainable economic growth in a competitive global environment.

In July last year I launched the Australian Logistics Industry Strategy. It is a world leader in terms of its comprehensive review of the opportunities and challenges facing the industry. It is also industry-driven, and marks the first time transport and non-transport freight service providers have united under the industry banner of logistics.

The Australian Logistics Council is the leadership group responsible for the implementation of the strategy. Made up of 24 industry and government leaders, it is chaired by myself while in its early stages, so as to provide momentum.

Rapid as the road: AusLink should help rail compete with road

Already the Council is making a significant contribution. It has taken the lead in demonstrating industry support for the government’s AusLink initiative. It is also leading the drive for uniform regulation in the rail sector that is still suffering from differing jurisdictional regulations, standards and practices, that inhibit the ability of operators to provide a seamless service able to compete effectively with the road sector.

Waterfront performance monitoring
The Bureau of Transport and Regional Economics (BTRE) has been monitoring stevedoring performance, and publishing this in its Waterline publication since 1994.

Since 1998 there has been a dramatic improvement in waterfront productivity. Container terminal productivity, as measured by the number of containers lifted per hour per crane for the average of the five major ports, has risen from 18.8 in March 1998 to 26 in December 2002. Australian waterfront productivity and reliability is now consistent with world’s best practice.

In light of the increasing emphasis on the interface between port and land, the BTRE intends to develop, with the cooperation of industry, a new set of indicators targeting this performance. The new data-sets should be finalised in 2003 and published on a biannual basis.

Productive: ports such as Melbourne offer world’s best practice

Port and maritime security
The 11 September attacks on the United States, as well as the recent attacks on Bali and a French tanker off Yemen, reiterate the importance of security. Security against terrorism in the maritime sector, particularly the ports sector, is a relatively new concept, requiring significant cultural change and investment.

In response to concerns, a new international maritime security framework has been developed through the International Maritime Organization (IMO). The framework includes amendments to the Safety of Life at Sea (SOLAS) Convention and the introduction of an International Ship and Port Facility Security (ISPS) Code. These changes will significantly improve maritime and border protection measures.

The importance that the Australian government places on security in the transport sector has led to the creation of a Transport Security Division within the Commonwealth Department of Transport and Regional Services. The new division will oversee the implementation of the IMO’s new maritime security measures and examine the broader issues of land transport security in Australia.

In meeting the IMO timetable of 1 July 2004 for putting into effect the new measures, this new division will be instrumental in approving and putting into place more than 300 port security plans and risk assessments.

Shipping policy
Australia is primarily a trading nation and its national economic interest is enhanced by access to world competitive transport services. Shipping is the predominant mode for carrying our international trade and for the movement of bulk product around our coast. Shipping services need to be as efficient and productive as possible to help Australian industry remain competitive in the global market. This is particularly so in many of the bulk trades where transport cost is a significant factor in the overall cost of the product.

Bulk trade: efficiency is essential (Pic: Brisbane TradeCoast)

In recognition of this, Australian shipping policy is pro-competitive and shipper-focused. Australia does not provide any form of fiscal support for its shipping industry. Australia does, however, provide a general business environment in relation to such matters as taxation, competition policy, and employment and education that is attractive for investment and operations.

Australia also has a balanced approach in relation to cabotage. Australian-licensed vessels are given preference to carry domestic cargo subject to their being available and suitable to meet the needs of the shipper. Where no licensed vessel is available or suitable, the government may issue a permit for another vessel provided it is in the public interest and the vessel does not pose a risk to safety and the environment. Australia sees this regime as providing an appropriate balance between the needs of the shippers and the licensed operators.

Australia does, however, recognise that in pursuing the national economic interest it is desirable for Australians to participate to the maximum extent possible in the shipping industry. The government remains open to ways in which this can be achieved on the condition that it is in the overall national economic interest. This position is encapsulated in a phrase I often use, that “Australia is a shipper nation not a shipping nation”.

The Hon. John Anderson MP,
Deputy Prime Minister and Minister for Transport.
Website: www.dotars.gov.au

Geo-Economic and Port Data

Coast with the Most

Fremantle Ports

Australian Reef Pilots

Changing Customs

Department of Transport and Regional Services