I n s i d e I C H C A | July 2017 P a g e | 1

July 2017

About ICHCA – International Cargo Handling Coordination Association

TheInternationalCargoHandlingCoordinationAssociation(ICHCA)isaninternational,independent,not-for-profitorganisationdedicatedtoimprovingthesafety,security,sustainability,productivityandefficiencyofcargohandlingandgoodsmovementbyallmodesandthroughallphasesofnationalandinternationalsupplychains.ICHCAInternational’sprivilegednon-governmentorganisation(NGO)statusenablesittorepresentitsmembers,andthecargohandlingindustryatlarge,infrontofnationalandinternationalagenciesandregulatorybodies.ItsExpertPanelprovidesbestpracticeadviceandpublicationsonawiderangeofpracticalcargohandlingissues.

ICHCAAustraliaLtdisproudtobepartoftheICHCAInternationalLtdglobalnetwork.ToaccesspastnewslettersandotherusefulinformationgototheICHCAAustraliawebsiteatwww.ichca-australia.com.WealsohaveanICHCAinternationalwebsiteatwww.ichca.comTo join ICHCA please contact Peter van Duyn, Company Secretary of ICHCA Australia Ltd onpeter.van-duyn@ichca.com ortelephone0419370332.

Inside this issue

AboutICHCA–InternationalCargoHandlingCoordinationAssociation......................................................1Insidethisissue.............................................................................................................................................1ICHCAInternational65thAnniversaryConference.......................................................................................2DevelopmentforSydney’sEnfield................................................................................................................2SAEssentialServicesCommissionPricingandAccessRegimessubmissions...............................................3RoyalWolftakeoverbid................................................................................................................................3NewForkliftActionmarketplacegoeslive....................................................................................................3CONTAINERS–whataretheygoodfor?.......................................................................................................4Themerrygoroundofcoastalshipping.......................................................................................................5Automatedtruckscomingtoaroadnearyou..............................................................................................6APECForumVietnam2017...........................................................................................................................8COSCOwinsOOCL.........................................................................................................................................8ICHCAVictorialuncheon...............................................................................................................................9AdelaideICHCAluncheon...........................................................................................................................10ICHCAContacts...........................................................................................................................................11

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ICHCA International 65th Anniversary Conference

LookingtowardsthefutureofcargohandlingtomaketheglobalcargochainSAFE,SUSTAINABLE,SECURE,SMARTandSKILLED.

ICHCA'sflagshipeventwillbringtogetherthebignamesincargohandlingtodiscussthebestwaystoimprovetheindustry. JoinusinLasPalmasinOctober2017tomark65yearsofICHCAInternationalworkingtoimprovethesafety,efficiencyandsustainabilityofthecargohandlingindustryworldwide.OurspecialAnniversaryEventiskindlyhostedbythePortofLasPalmas,GranCanarias,Spain,athrivinganddiversecentreforcargo,cruise,fishing,shipsupplyandoffshoreservices,akeyhubforAfricaninternationaltrade,andhometoICHCA’sCanariesandAfricaRegionChapter(CARC).

Formoredetailsonspeakersandtheupdatedprogramgoto: www.etouches.com/ichcaconference2017

Development for Sydney’s Enfield

ENFIELDIntermodalLogisticsCentre(ILC)issetforanimprovementwiththeannouncementthatNSWPortsandindustrialpropertyfirmGoodmanGroupenteredapartnershiptodevelopanindustrialestateatthesite.EnfieldILCencompasses60hectaresofindustriallandinwesternSydney.ThesiteincludesthealreadyactiveEnfieldIntermodalTerminal,operatedbyAurizon,emptycontaineryardsand30hectaresofservicedland,readyfordevelopment.

Goodmanismarketingthelandforpre-leasedevelopmentrangingfrom2000squaremetresto70,000squaremetres,capableofdeliveryin2018.EnfieldILChasadirectrailconnectiontoPortBotanyandrailconnectionstothenationalnetwork.

NSWPortsCEOMarikaCalfassaidthecompany’s30-YearMasterPlanfortheEnfieldsitefocusedonincreasingthenumberofcontainersmovedbyrailtoandfromPortBotany.“Inordertomakethisareality,weneedtoensurethesiteincludeshighqualitywarehouseandlogisticsoperationsforourcustomers,”shesaid.“InGoodman,wefoundtherightdevelopmentpartner,givenitsproventrackrecordofdeliveringhighqualityindustrialdevelopments.”

Goodman’sAustraliangeneralmanager,JasonLittlesaiditsproximitytotheon-siteintermodalfacilityandthededicatedfreightraillinemadetheEnfieldsiteunique.“Inadditiontorailaccess,beinglocatedsoclosetotheSydneyCBDmeansthatEnfieldILCisidealforfacilitating‘lastmiledelivery’,ensuringcustomersareclosetotheirendconsumers,”hesaid.

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SA Essential Services Commission Pricing and Access Regimes submissions

On5May2017,theSAEssentialServicesCommissionreleaseditsdraftreportintothePricingandAccessRegimesthatapplytoproclaimedportsinSouthAustralia.TheCommissionproposesthatthePricingandAccessRegimesshouldcontinueforthefive-yearperiodfrom31October2017.

TheCommissionhasformedthepreliminaryviewthattherearesomeareaswhereconsiderationshouldbegiventoimprovingtheregimes.Thoseareasare:

• thelevelandtypeofinfrastructurecoveredbytheregimes

• theconsistencyofservicesinscopeoftheregimes,and

• integratingtheregimesintoastate-widetransportregime.

TheCommissionhasreceivedthreepublicsubmissionstoits2017Portsaccessandpricingreviewdraftreport.AllrelevantissuesraisedinthesubmissionswillbeconsideredbytheCommissionaheadofreleasingitsFinalReportinSeptember2017.

Toviewthesubmissions,goto:Portsaccessandpricingreviewproject

Royal Wolf takeover bid

ShippingcontainerbusinessRoyalWolfHoldingslookssettobetakenoverbyitsmajorityshareholder,GFNAsiaPacificHoldings.GFNAsiahasreleasedabidder’sstatement,offering$1.83pershareforthesharesitdoesn’tholdalready.Thispriceis40.8%higherthantheclosingpriceonJuly11($1.30),thedaybeforetheofferwasannounced.Sincethen,RoyalWolfshareshaveincreasedinvalueandhavebeentradingataround$1.75pershare.

Thebidder’sstatementannouncedtheindependentdirectorsofRoyalWolfunanimouslyrecommendedthatcurrentshareholdersaccepttheoffer.

New ForkliftAction marketplace goes live

ForkliftActionMediahasreplaceditsMarketplacewithanewtradingplatformformobilemachinery,Machinery-onQ(www.machinery-onq.com).ThenewplatformbuildsonthesuccessofForkliftAction’slongandvaluedroleasatrustedvoicewithinthematerialshandlingindustry.“Machinery-onQhasbeenbuiltuponthisreputation,withtheteamdrawinguponyearsoffeedbackfromitsusersandpairingthiswiththeverylatestdevelopmentsinwebdesign,”saysForkliftActionCEOAnnHofmans.“Wewantedtopresentauniqueplatformthatepitomisesthebestofcontemporarybusinesspracticesandempowersitsuserswithaproductiveandhassle-freetradingexperience,”sheexplains.

Hofmansadds:“Ouraimwastoprovideatoolthatisbothinclusiveinscope,throughcateringtoawiderangeofequipment,andflexibleinreach,allowingtraderstosellworldwide,ortotargetmorelocalmarkets.Intheindustrytoday,weseeanincreasingneedfortimelydeliveries,leanmanufacturingandglobalcompetitionplacingextraburdensontheprocessofacquiringmachinery.WithMachinery-onQ,businesspeoplecansourcetheirfullrangeofnew,usedandrentalmachines-allintheoneplaceandwithinjustafewclicks.”

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Thenewplatformfeaturesanextendedrangeofequipment.Besidesforklifts,buyerswillfindarangeofcontainerhandlers,warehousemoversandstackers,towtrucks,sweepersandevenaerialworkplatforms.Findingtherightmachineforeachapplicationismadeeasyforusersthroughtheplatform’scomprehensivesetofsearchfilters.Machinery-onQalsoallowssellerstoadvertisetheirmachinelistingsworldwideorwithinspecificregions.“Yearsofworkingwithourcustomersmadeusrealisethatdealerswantatradingplatformthatisequallyproductiveforthoselookingonlytoselltosmallerregionalmarketsasforthosewhoarelookingtotargetaglobalmarket,”saysHofmans.CurrentregionsincludetheAmericas,Europe,AsiaandOceania.AsMachinery-onQdevelopsinallpartsoftheworld,newplatformsforsmallerregionswillbeaddedandtherearealsoplanstointroduceadditionallanguages.“OneofthemainobjectivesforMachinery-onQistoshortenthegapbetweenbuyersandsellers.Machinery-onQisimbuedwithintelligentsystemsthatarecapableofconnectinguserswithmatchinginterests,”shepointsout,addingthatthenewsystemhasintelligentalertsforbothbuyersandsellers.AccordingtoHofmans,thenewtradingplatformisonlythebeginningofatransformationofthematerialshandlingbusinessplatformstartedalmosttwodecadesago:“Machinery-onQisanambitiousproject.Wehavemanymorefeaturesandadditionsalreadydesignedandplannedforthenearfuture.”

CONTAINERS – what are they good for?

Well,alotofthings,andthat’swhattheAustralianNationalMaritimeMuseumhopestocommunicatewithitsupcomingexhibitiondubbed–youguessedit–“Container”.OpeninginlateOctober,itwillbeafree,outdoor,interactiveexhibitionhousedentirelyinsix20-footers.

“Container”willexplorethehistory,contemporaryimpactandfutureoutlookforthiscommonplaceobject,coveringshipping,ports,cargo,theroleofshippinginourdailylivesandcontainerarchitecture.TheexhibitionhasattractedtheattentionandsupportofseveralheavyhittersintheAustralianshippingindustry,includingNSWPorts,whichhelpeddevelop“Container”.

NSWPortsCEOMarikaCalfassaid,“AsthecustodianofPortBotanyandPortKembla,importandexportgatewayshandlingpeople’svaluedgoods,wearedelightedtobeabletopartnerwithindustryandtheAustralianNationalMaritimeMuseumtobringthisexhibitiontolife”.

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SponsorsoftheexhibitionincludeACFSPortLogistics,MaritimeContainerServices,DPWorldAustraliaandSmitLamnalco.SupportersincludeTransportforNSW,ShippingAustraliaandTTClub.ThecontainersaretobesuppliedbyRoyalWolf.

“Container–theboxthatchangedtheworld”opensattheAustralianNationalMaritimeMuseum,DarlingHarbouronOctober26andisfree.Itwillrununtillate2018beforetouringlocationsacrossNSWandpotentiallynationally.Forfurtherinformation,visittheexhibitionwebsite.

The merry go round of coastal shipping

CoastalshippinghasbeenaroundsinceIndigenouspeoplesailedaroundourcoastlineincanoes.Thousandsofyearslaterwearestillstrugglingtouseafreeresource,theseathatsurroundsourislandnation,tomovegoodsaroundthecountryinanefficientandcost-effectivemanner

Ithasbeenatopicofdebateatfederalgovernmentlevelformanyyearsbutunfortunatelyhasnotbeenaddressedinameaningfulmanner.ThelatestinthislongrunningsagaisthatDarrenChesterMP,MinisterforInfrastructureandTransport,releasedadiscussionpaperinMarchthisyearoncoastalshippingreforms,invitingcommentsfromstakeholdersinthesector.

Coastalshippingisanintegral,costeffectiveandsustainablepartofthesupplychain.Australiaisanislandnationwithvastdistancesbetweenpopulationcentres.Morethan85%ofthepopulationliveswithin50kilometresofthecoast.Portsarethegatewaystoandfromthesepopulationcentresandshouldbeutilisedmoretotransportgoods.ThevastmajorityofAustralianfreightmoveswithinafewhundredkilometresoftheeasternseaboard.Therehasbeenalong-termtrendawayfromsea-baseddomestictransportduetoacombinationofgrowthininternationaltrade,significantinvestmentinland-basedtransportandtheadoptionofthe‘justintime’principle,whichhasresultedinfrequentsmallquantitiesoffreightbeingmovedratherthanlessfrequentbulkdeliveries.

ShippingshouldformanintegralpartofourNationalFreightandSupplyChainStrategy(announcedbytheFederalGovernmentinlate2016).Thiswouldprovidemoreefficient,environmentallyfriendlyandsafermovementsofgoodsinto,outof,andaroundAustralia.TherecentdecisiontofundtheMelbourneandBrisbaneInlandRailprojectdemonstratesagainthatnotalloptionstomovegoodsefficientlyaroundthecountryhavebeenconsidered.Foralotlessthanthe$10billionwhichhasbeencommittedfortheinlandrailproject,aneffectivecoastalshippingprojectcouldhavebeeninstigatedusingexistinginfrastructure(ourports)andfacilitatingthefundingofdedicatedvessels(suchastheroll-onroll-offtypevesselsusedacrossBassStrait)toestablishthesocalled‘motorwaysofthesea’.

Road-basedtransporthas,formanyyears,receivedadisproportionateamountofinfrastructurefunding,providingitwithadvantagesoverrailandsea-basedtransport.Endeavourstosolvedomestictransportationissueshasoftenledtosub-optimaloutcomesinthemovementoffreight.Aholisticviewof

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thesupplychainshoulddriveinvestmentininfrastructureincludingportsandshipsinanefforttoprovidelinkagestomeettheneedsofimporters/exportersanddomesticcustomers.

Crucialtoincreasingtheuseofportsandshipsistheneedtoprotectourtradecapacityandcapability.ThenumberofAustralianflaggedshipsisdecliningrapidly.Themaritimeandmaritime-relatedskillsbaseisdeclininginlinewiththistrend.Thereisaneedtoarrestthedeclineintheskillsbasewithanoverhauloftrainingpracticesandlabourproductivity,inconsultationwithemployersandunions.Areviewofseafarer'sremunerationinlinewithageneralreviewofthecurrentfiscalregimeforshipsisurgentlyrequired

Amaritimecapabilityisimportantforoursecurity.AustralianflaggedandmannedshipsaroundourcoastlinewillbenefitourNavalandBorderForceAgenciesduetoincreasedavailablemaritimeskillswhichcanbeemployedontheirshipsoractinlandbasedmaritime-relatedprofessions.Thiswillalsoassistinrevivingoureducationalinstitutionsspecialisingintheprovisionofmaritime-basedtrainingandinestablishingasocalled‘maritimecluster’ofshippingrelatedactivitiessuchaschartering,providinglegaladvice,insurancebroking,shiprepairsandmanymore.

CoastalshippingisvitaltotheeconomyofAustraliaandtherightdecisionshavetobemadebytheFederalGovernmenttoensurethatcoastalshippingisaviableandcost-effectivealternativetoroadandrailtransport.Ourcompetitivenessinglobalmarketsreliesonaneffectivecoastalshippingpolicy.

AconcertedeffortisrequiredtoencourageAustralianindustriesandlogisticsproviderstoseethevalueofanintegratedsea-basedoperatingsupplychain.Currentlythereseemstobeagenerallackofbuy-inbymoststakeholders.

PetervanDuyn,MaritimeLogisticsExpert,CentreforSupplyChainandLogisticsatDeakinUniversityandDeputyChairofICHCAAustralia

Automated trucks coming to a road near you

InNovember2016Australia’stransportministersdecidedtoreformvehicleregulationssofullyautomatedvehicleswillbeallowedtotravelourroadsfrom2020.Itwillbeamajordisruptiontothetransportindustry,onethatforcesvehiclebookingsystemstothenextlevel.Notonlywilllogisticssystemsbookvehiclesandlogmanifests,theywillplanandmonitortruckandrailroutesaswell.

Thenextgenerationofbookingsystemswillthereforeneedtoprovideuserswithacompleteecosystem–amorepredictableandconsistentutilisationofassetsthatmaximisestheuseofsupplychaincapacity.Automatedvehiclescarryingfreightwillbelinkedtothisbookingsystem.Moreforeseeableandsteadyutilisationofcapacityavailablewillbepossibleinthisnewera,wherebigdata,analyticsandfullyautomatedvehiclescombineononeplatform.

VehicleautomationinAustralia

TheNationalTransportCommission(NTC)definesautomatedvehiclesas“vehiclesthathavesomelevelofsystemautomationwhichdonotrequireahumandriverforatleastpartofthedrivingtask”.Therearefourcategoriesofautomation:Partial,Conditional,HighandFull.Manyofusarefamiliarwiththefirst(Partial),whenahuman-drivenvehicleself-parksormaintainsasafedistancefromothervehicleswithoutdriverintervention.

Conditionalautomationiswhereahumandrivermonitorsthevehicle’sprogressfrominsidewhilenothavingtodriveormonitortheenvironment.Iftherearebadweatherconditions,thehumandriverintervenes.

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Atthenextlevel(High),highlyautomatedvehicleswillbeabletooperateonlimitednetworkswithoutahumandriverbutwithsomehumaninterventionincertainsituations,suchasslow-movingtrafficjams.

Fullautomationiswhenthevehiclehasnodriver,butperformsasifitwerebeingdrivenbyahuman.Thereisnohumaninputatanypoint.

Interestinglegalquestionsareraisedbythehighlyandfullyautomatedvehiclecategories.Willitbenecessaryforthesystemoperatingthevehiclestoholdadriver’slicense?‘Who’isatfaultinthecaseofanaccidentinvolvinganautonomousvehicle?In2016,theNTCreleasedapolicypapercoveringtheseissuestitled,Regulatoryreformsforautomatedroadvehicles.

TheriseofInternetofThingsandBigDataandthesimultaneousdevelopmentofautonomousvehiclesheraldsanewdisruptiontothelogisticsindustry,oneinwhichhumansareremovedfromthehandlingandtransportoffreight.Thenewroleofmanagementandstaffwillbetochooseandmaintainthedigitalplatformonwhichtheautonomouslogisticschainruns.Thenew,digitaldashboardwillnotbeviewedfromthedriver’sseatofatruckonanoutbackhighway,butfromamonitoringcentreinacityfaraway.DecisionsabouttheroutetakenbyacontainertruckinDubbocouldbedecidedbyadigitallogisticsplatformbasedinDublin.

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APEC Forum Vietnam 2017

APECistheAsiaPacific’spremiereconomicforum.TheprimarygoalistosupportsustainableeconomicgrowthandprosperityintheAsia-Pacificregion.Thisyear’sAPECForumwasinVietnamandNSWPorts’AdemLongwasinvitedtospeakattheAsiaPacificModelE-PortNetwork(APMEN),atechnicalworkinggroupofAPEC.

Adem(whoisalsoaDirectorofICHCAAustralia)hasbeenafoundingmemberofthisgroup,representingNSWPortsandtheAustralianGovernment.OtherAPECEconomymembersareCanada,People’sRepublicofChina,HongKong,

Malaysia,Mexico,Peru,ChineseTaipeiandVietNam.ObservershaveincludedJapan,PapuaNewGuinea,PhilippinesandRussia.

AustraliahasbeenadvocatingandlobbyingforapilottofurtherinvestigatedevelopingaModelE-PortSystem(ME-PS)orPortCommunitySystem(PCS)inAustraliaandultimatelywithinotherAPECeconomies.AlthoughAustraliahasverygoodprocessesandsystemsinplace,therearestillpointswherethecontainernumberisenteredintodisparatesystems;onatypicalimportcontainer,thiscanbeupto32times.Thisissuewillbetargetedinthepilotwherewaystostreamlinewithbetterdataflowwillbeinvestigated.

Afterthreeyearsofadvocatingforthepilot,APECgaveitsapprovalandpromisedfundingatthisyear’smeeting.Thescopewillnowbedeveloped.SeveralstakeholderswithinAustraliawillbeinvolvedandtheoutcomewilldeliveraconceptwhichwillassistefficiencyimprovementswithintheportsupplychain.TheconceptwillbesuitabletoberolledouttootherAPECEconomies,whichintimecandeliverbotheconomicandsupplychainimprovementsforAustralia.

COSCO wins OOCL

TheglobalcontainerpeckingorderhasbeenrevisedwiththenewsthatChina’sCOSCOShippingHoldings(togetherwithportgroupShanghaiInternationalPortsGroup)hasfinallysealedadealtobuyHongKong’sOOIL,parentofOOCL,forsomeUS$6.3billion. TheTungfamilyhasacceptedthestate-backedtakeoveratHK$78.67ashare,a31percentpremiumontheclosingprice.OncethedealachievesrelevantclearancesCOSCOwillhold90percentofOOILwithSIPGtheremainder.COSCO,whichonlylastyearcompletedastate-directedmergerwithChinaShipping,willthenholda11.6percentmarketshareandleapfrogCMACGM(11.3%)totakethirdplacebehindMaerskandMSC.AlphalinercalculatesthecombinedCCOSCO-OOCLwilloperatemorethan400vesselswithcapacityexceeding2.9millionTEU.Needlesstoadd,thetakeoverwillhaveamajorandimmediateimpactonAustralianandNewZealandtradeswithAsia,inwhichCOSCOandOOCLarebothleadingplayers.Alphalinerhasalsocalculatedthatoncethissalecompletes,theMaerskLine/HamburgSüdtakeoverbecomesfullyeffectiveandtheONEcombinationisoperationaltheTop10containerlineswillcontrolalmost82percentoftheglobalmarket.

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ICHCA Victoria luncheon

On25thJuly,awell-attendedICHCAAustralialuncheonwasheldattheMarriottHotelinMelbourne.AnthonyJones,GroupCEOofLINXCargoCare,wastheguestspeaker.Anthonygaveanoverviewofthebusinessunitswithinthegroupandoutlinedtheirplanstogrowthebusinessbybeingagileandinnovative.

ThetalkwasfollowedbyalivelyQ&Asession.Asumptuousmealwasenjoyedbyallandtheluncheonprovidedagreatopportunityfornetworkingwithindustryprofessionals.

LINXCargoCare,anICHCAAustraliamember,kindlysponsoredtheluncheon.

ThenextICHCAVictorialuncheonwillbeheldinOctober2017withdetailstofollow.

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Adelaide ICHCA luncheon

EvanKnapp,ExecutiveOfficerSAFL,isatransportpolicyprofessionalwithover15years’experienceinthefieldacrossallmodes(road,rail,seaandair)andwasappointedtoleadtheSAFreightCouncilinearly2016.

Evanhasbroadexperienceacrossbothnon-governmentassociationsandwithingovernment,includingpositionswithTheRoyalAutomobileAssociation;NationalRailSafetyRegulatorProjectOffice;DepartmentofPlanning,TransportandInfrastructure;SouthAustralianFreightCouncil;andDepartmentofPremier&Cabinet.

EvanwillbespeakingonBetterFreightRegulation–Common-senseChangesforImprovedEconomicProsperityinSA.

TobeheldattheLakesResortHotel,WestLakesonWednesday23rdAugust2017.

Proudlysponsoredby:

ICHCAMembers$65.00perperson/Non-Members$80.00perperson

Fordetailsandregistrationpleaseemaildeb.warda@ichca.comorpeter.van-duyn@ichca.com.

Downloadinvitationandregistrationformhere

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ICHCA Contacts

ICHCA Australia Chairman: JohnWardaMobile:0417875113Email:jpwarda@bigpond.com

Company Secretary: PetervanDuyn492GeorgeSt,FitzroyVIC3065Mobile:0419370332Email:peter.van-duyn@ichca.com

State co-ordinators

New South Wales: AdemLongMobile:0427700681Email:Adem.Long@nswports.com.au

South Australia: GregBurkMobile:0418639568Email:gregburk2611@gmail.com

Queensland: SallieStrangMobile:0412604842Email:sstrang@stxgroup.com.au

Victoria: PetervanDuynMobile:0419370332Email:peter.van-duyn@ichca.com

ICHCA AUSTRALIA LIMITED (IAL) PRIVACY POLICY

IAL’sPrivacyPolicyDetailsareavailablebycontactingtheNationalSecretary,PetervanDuyn,one-mailpeter.van-duyn@ichca.com ortelephone0419370332.

OurContactwithYou

Ifyoudonotwishtoreceivefurthercopiesofthisnewsletterpleaseadvisepeter.van-duyn@ichca.comandthedistributionwillbecancelled.Ifyouwishtohaveitsenttootherpeopleinyourorganisationorcontactsinthecargohandlingindustryalsopleaseadviseus.