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August 2013

About ICHCA – International Cargo Handling Coordination Association

ICHCA’s objective is to increase knowledge of ways to improve the efficiency and economy in the handling and movement of goods, from origin to destination by all modes and at all phases of the national and international transport chains. ICHCA Australia Ltd is proud to be part of the ICHCA International Ltd global network. Members can access past newsletters and other useful information by going to the ICHCA website at www.ichca-australia.com. To join ICHCA please contact Ian Lovell, Company Secretary of ICHCA Australia Ltd on ian.lovell@bigpond.com or telephone 0400 708 182.

IN THIS ISSUE

Scurrah Leaves Aurizon for DP World Australia

CEDA Seminar Focus on Transport Infrastructure

NSW Ports Chairman Appointed

Countering Maritime Piracy

Port of Melbourne Board Directors Appointed

DAFF & ACBPS Information Sessions

Container Ship Sets Fremantle Record

Toll Group Announces 2013 Results

Rio Tinto Loads First Ship From WA Expansion

Methyl Bromide Fumigation Changes

AusIntermodal 2013 Programme

Scurrah Leaves Aurizon for DP World Australia

Aurizon’s Executive Vice President Commercial and Marketing, Paul Scurrah, will be departing the company to lead DP World Australia.

Aurizon’s Managing Director and CEO, Lance Hockridge, said Mr Scurrah had been appointed to a more senior role external to Aurizon and he congratulated him on securing the new position. “Paul has done a terrific job at Aurizon and has been integral to our success in recent years,” Mr Hockridge said.

“He was brought in to do a specific job and he has done it well. He has built our new Commercial and Marketing division from the ground up and, as we transitioned from Government Owned Corporation to public listed company, ensured a greater focus was put on our customers.

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“By working closely with our customers to better understand their needs he and his team successfully helped us secure a suite of high-volume coal haulage contracts totalling circa 120 million tonnes per annum during the year. These contracts will be one of the foundation stones for our operations and growth into the next decade.”

Mr Hockridge said Mr Scurrah had put in place the framework to ensure improved customer performance continued at Aurizon.

He said Andrew MacDonald would act in the role as Executive Vice President Commercial and Marketing while a global recruitment search was underway. “Andrew is a key member of Paul’s management team and has been heavily involved in all major contract renewals and negotiations,” he said.

Mr Hockridge said Mr MacDonald had extensive experience in the transport and logistics sector having been with Aurizon for five years and previously in senior roles at Asciano and Toll.

CEDA Seminar Focus on Transport Infrastructure

Transport infrastructure productivity and efficiency will be the subject of a seminar in Brisbane soon to be hosted by CEDA Queensland. Speakers at the event on 3 October at the Brisbane Convention and Exhibition Centre will be the National Infrastructure Coordinator for Infrastructure Australia, Michael Deegan; CEO of the National Heavy Vehicle Regulator, Richard Hancock and the CEO of Airservices Australia, Margaret Staib. Transport network efficiency and supply chain connectivity, across roads, rail, air and ports is central to maximising national productivity. New transport infrastructure projects are essential but so too is maximising capacity and use of existing infrastructure. Through regulatory reform, national standardisations, new technologies and targeted expansion, the capacity and productivity of transport infrastructure can be optimised. Infrastructure Australia is reforming the way the nation plans, assesses, finances, builds and uses infrastructure. National priorities and national coordination are seen as critical. Responding to ongoing growth demands, Australian airspace and air services are focused on enhanced planning flow, improved cross jurisdiction negotiations, logistics reform and technology. The connecting and standardising work of the National Heavy Vehicle Regulator is expected to bring about billion dollar efficiency, safety and productivity gains. Enquiries to admin.queensland@ceda.com.au or 07 3229 9955.

NSW Ports Chairman Appointed

NSW Ports, the operator of Port Botany and Port Kembla in New South Wales, has announced the appointment of Paul McClintock AO as its Chairman. Mr McClintock brings a significant record of leadership in major Australian companies and government entities to his new role at NSW Ports. He is Chairman of Myer Holdings Limited, Thales Australia, I-MED Network and the Institute of Virology. He is also a Director of St Vincent’s Health Australia Limited.

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"NSW Ports operates two very significant infrastructure assets which are critical to the economy of NSW, Australia’s largest state economy. I am delighted to be its new chairman and look forward to working with our board and our employees to manage and develop these assets to support the growth of the state," Mr McClintock said. Mr McClintock was appointed as an Officer of the Order of Australia (AO) in 2009 in recognition for service to business through leadership and management roles in the areas of finance and health, to Australian-Malaysian relations and to public policy development. From July 2000 to March 2003 he served as the Secretary to Cabinet and Head of the Cabinet Policy Unit reporting directly to the Prime Minister as Chairman of Cabinet, with responsibility for supervising Cabinet processes and acting as the Prime Minister’s most senior personal adviser on strategic directions in policy formulation. Mr McClintock’s former positions also include Chairman of Medibank Private Limited, the COAG Reform Council, the Expert Panel of the Low Emissions Technology Demonstration Fund, Intoll Management Limited, Symbion Health, Affinity Health, Ashton Mining, Plutonic Resources and the Woolcock Institute of Medical Research. He was also a Director of Sydney Ports Corporation, the Australian Strategic Policy Institute and Perpetual Limited, a Commissioner of the Health Insurance Commission and a member of the Australia-Malaysia Institute Executive Committee. Mr McClintock graduated in Arts and Law from the University of Sydney and is an honorary fellow of the Faculty of Medicine of that University and a Life Governor of the Woolcock Institute of Medical Research.

PowerLogistics Asia Conference in Singapore on the 30th and 31st of October 2013.

The PowerLogistics Asia exhibition and conference for the heavy transport and lifting industry is taking place in Singapore on the 30th and 31st of October 2013. ICHCA members are eligible for a 10% discount. Kindly visit this link for the conference agenda: http://powerlogisticsasia2013.com/Conferences_About.html

Countering Maritime Piracy: Continued

Efforts for Regional Capacity Building

The UAE Ministry of Foreign Affairs, global ports operator DP World and Abu Dhabi Ports Company (ADPC) have announced that they are co-convening the third international counter-piracy conference in Dubai on 11-12 September. Their joint hosting of the conference demonstrates the importance of public and private sector coordination in the fight against maritime piracy both on and off shore.

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More than 500 participants comprising foreign ministers, senior government officials, executives of global maritime-sector companies and leading experts will convene for the two-day event entitled: Countering Maritime Piracy: Continued Efforts for Regional Capacity Building. Building capacity in the region includes addressing piracy in the short term through effective security initiatives, including co-ordination between international navies and merchant vessels and longer term initiatives that support the development of local economies. The humanitarian impact of piracy on seafarers and their families continues to be a focus and a highlight of this year’s conference will be a discussion with Captain Juwaid Saleem, a former captive of pirates in Somalia, and his family, who will share their experiences. Captain Juwaid and his crew were held for more than two years and his two daughters featured in a documentary premiered at last year’s conference highlighting the humanitarian cost of piracy, when he was still a prisoner. He and seven of his crew were released six weeks after the 2012 conference. The remaining 15 crew members are still missing in Somalia. Key themes of the conference will include:

Continuing to build awareness of the humanitarian and economic cost of piracy, including support for

seafarers.

Injecting new momentum in the search for an effective and enduring solution to piracy through collaboration

across political, military, financial and legal sectors.

Encouraging a comprehensive approach that can deliver a long term sustainable solution to counter piracy,

including land-based solutions.

Highlighting cooperation between industry and government sectors through joint strategies emphasising

sustainable long-term solutions.

Port of Melbourne Board Directors Appointed

Victorian Minister for Ports, David Hodgett, has announced four appointments to the Port of Melbourne Corporation Board, as the port capacity project moves forward. Mr Hodgett announced renewed appointments for Deputy Chair, James Cain and Director, David Cranwell, and new directors, Alice Williams and Jim Marshall. “I’m pleased to make these strategic appointments at a critical time for the Port of Melbourne Corporation as it delivers the largest port transformation project in Victoria’s history,” Mr Hodgett said. “I have great faith that Mr Cain and Mr Cranwell will continue to provide the leadership needed to help navigate the massive undertaking that will see the Port of Melbourne maintain its competitive edge as Australia’s largest container and general cargo port. “I would also like to welcome new board members Alice Williams and Jim Marshall who not only bring enthusiasm to the board, but also a wealth of experience. Mr Cain has extensive experience as a management consultant for property and major capital works companies in the public and private sectors, including 12 years with Lend Lease Corporation and five years as Executive Director of Major Projects Victoria. “Also renewing his position, Mr Cranwell has been a long serving member since the inaugural board formed in 2003 and continues to make a valuable contribution drawing on his senior management experience in logistics with both Mayne Group Ltd and TNT Ltd and extensive maritime experience with Australian National Line. “Ms Williams and Mr Marshall complete this round of board appointments, with Ms Williams bringing over 25 years of senior management and board level experience in funds management, investment banking, corporate and government sectors. Mr Marshall draws on current board membership experience that includes Star Track Express Holdings and Sai Cheng, as well as being a former Chief Operating Officer of Australia Post. “The Victorian Coalition Government is committed to delivering the capacity required to accommodate future growth in container trade, and it is critical that this commitment is supported by having the right leadership in a well-rounded board to ensure this vision becomes a reality.” Mr Hodgett expressed appreciation to the outgoing directors, Jay Bonnington and Ian Robbins.

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Container Ship Sets Fremantle Record

MSC Messina

The container ship MSC Messina set a record for Fremantle Port when it berthed at the Patrick Terminal, North Quay. At 300 metres, it is the longest container ship to visit the port. Fremantle Ports’ Inner Harbour deepening and associated berth works completed in 2011 are enabling the port to handle the bigger ships now in engaged on trade routes to and from Australia. Chief Executive Officer, Chris Leatt-Hayter, said the infrastructure works have contributed significantly to the long-term sustainability of Fremantle Ports’ Inner Harbour, providing additional capacity and ensuring that importers and exporters continue to have access to major direct shipping. “The economies of scale in enabling the larger, more efficient ships to service the port help to keep transport costs down, with flow-on benefits to the business sector and the community,” he said. The reconstruction of Berth 10 on North Quay added an additional 180 metres of operational wharf space for container shipping and land reclaimed at Rous Head as a product of the harbour deepening is currently being developed to enhance port efficiency.

Toll Group Announces 2013 Results

Australia’s largest provider of transport and logistics, Toll Group, has announced its annual results for the 2012/13 financial year.

Sales revenue was in line with the previous year at A$8.7 billion, with total earnings before interest and tax (before non-recurring items) up 3.7 per cent to A$426 million and net profit after tax (before non-recurring items) up three per cent to A$282 million. After deducting non-recurring charges of A$191 million after tax, reported net profit was A$92 million. Toll increased its fully franked final dividend by 1.0 cent to 14.5 cents per share.

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Speaking at the announcement, Toll Group Managing Director, Brian Kruger, said he was pleased Toll was able to grow underlying operating earnings despite challenging market conditions.

“We saw solid earnings from our core Australian businesses, reflecting the benefit of recent investments in those businesses to improve productivity and returns,” Mr Kruger said. “We are focussed on doing more with our existing global businesses and this result reflects that increased discipline. We see this as the right approach given both the volatile external environment and where Toll is in its development as a company.”

“Particularly encouraging was the benefits we were able to achieve from our One Toll initiatives. The One Toll program has seen us take advantage of a number of cross-selling and cost saving initiatives across the group in the areas of fleet and property investment and procurement processes. This is a multi-year program so it has been great to see the traction gained at this relatively early stage.

“The increased discipline in how we allocate our capital has allowed us to not only fund our investment program internally, but also to look to improve the returns we provide to our shareholders. We have increased our fully franked final dividend to 14.5 cents per ordinary share bringing the total dividend for the full year to 27 cents per share, up from 25 cents per share last year.”

Mr Kruger said the final dividend would be paid to shareholders on Monday 21 October 2013.

“Lastly I would like to thank all the employees of Toll around the world for their dedication and hard work. This year has not been without its challenges but the commitment from our workforce has allowed us to deliver this improved result.”

Rio Tinto Loads First Ship

From WA Expansion

Rio Tinto has achieved the significant milestone of loading the first shipment of iron ore from its expanded port, rail and mine operations in Australia. This marks the start of commissioning of the expansion programme, which will see overall capacity for Rio Tinto’s iron ore operations in Western Australia increase to 290 million tonnes a year.

Rio Tinto Iron Ore Chief Executive, Andrew Harding, said the 290 project is the largest integrated mining project in Australia. The delivery of 290 ahead of its original schedule and within budget is a testament to our focus on value-driven growth of our low-cost operations.

“Given the demanding operating environment in Western Australia over the recent period, this stands as a noteworthy achievement. I pay credit to the efforts and commitment of our employees, contractors and partners in the Robe River Joint Venture for what has been a genuine team effort.

“Our focus will now be to ensure the ramp-up to full run-rate is achieved safely and efficiently. As always, we will continue to seek further productivity improvements from our fully-integrated Pilbara system, including our industry leading Mine of the Future™ technology programme, in order to maximise the return on our investment.”

The phase two expansion of the port, rail and power infrastructure to 360 Mt/a is underway. A number of options for mine capacity growth are under evaluation including incremental tonnes from further low-cost productivity improvements, expansion of existing mines and the potential development of new mines.

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Methyl Bromide Fumigation Changes

The Department of Agriculture Fisheries and Forestry has issued and industry notice in relation to changes to the DAFF Methyl Bromide Fumigation Standard.

Who does this notice affect?

The notice is for all fumigation treatment providers in Australia and overseas who perform methyl bromide treatments for quarantine purposes on consignments imported to, or, exported from Australia.

What has changed?

Following consultation with industry stakeholders, the DAFF Methyl Bromide Fumigation Standard has been amended to add an extra row to the Methyl Bromide Monitoring Table. This clarifies the retention requirements for fumigations where equilibrium can be achieved in less than 30 minutes. References to the DAFF website have also been updated to amend several of the hyperlinks to their current address.

You can download a copy of the updated Standard and find details of all the changes on the DAFF website.

Further information

For further information on this issue please contact the International Arrangements Program by email AFAS or phone +61 2 6272 3991.

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ICHCA Contacts

ICHCA Australia Chairman: Tony Grant Shipping Information Agency PO Box 234, Campbelltown, SA 5074 Tel: (08) 8337 7452 Fax: (08) 8337 6945 Mobile: 0412 843 892 Email: tony.grant@ichca.com

National Secretary: Ian Lovell 9 Durham St, Henley Beach SA 5022 Tel: 0400 708 182 E-mail ian.lovell@bigpond.com

State Chairs New South Wales: Ken Fitzpatrick Asiaworld Shipping Services Pty Ltd Level 2, 403 Pacific Highway, Artarmon NSW 2064 Tel: (02) 9906 6372 Fax: (02) 9906 1874 Email: kfitzpatrick@asiaworld.com.au

South Australia: Neil Murphy SA Freight Council, c/o Flinders Ports 296 St Vincent Street Port Adelaide SA 5015 Tel: 08 8447 0688 Email: murphy.neil@safreightcouncil.com.au

Queensland: Sallie Strang - Events Strang International Pty. Ltd. 936 Nudgee Road, Northgate Queensland 4013 Tel: (07) 32678022 Mobile: 0412 604 842 Email: sstrang@stxgroup.com.au

Victoria: Austin Kennedy AECOM Level 9, 8 Exhibition Street, Melbourne VIC 3000 Tel: (03) 9653 1234 Fax: (03) 9654 7117 Email : austin.kennedy@aecom.com

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