Fremantle Ports

Truck Productivity Study – Update for FLC

Jennifer Hall, Senior Logistics Analyst29 August 2013

Contents

Background Truck Productivity Indicators Purpose of Study Key Findings of Data Analysis Next Steps

BackgroundTrucking vital to Fremantle container supply chain

• Currently handles approx 85% of total Port volume• Even if rail reaches 30% road volumes will increase• Both truck numbers and efficiency are key issues

Truck Survey measures of productivity have shown a stagnation since 2006 and decline over last 2 years

Explanations for this based largely on speculation and anecdotal evidence

A number of other issues need attention:• VBS “Mad minute”• Large number of carriers• Orderly transition to 24x7

Truck Loading (Utilisation)

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

1.75 1.75 1.76 1.781.86 1.89 1.88 1.87 1.90 1.86 1.85

1.24 1.28 1.30 1.341.42

1.35 1.33 1.36 1.36 1.33 1.28

TEU per loaded truck TEU per truck (incl Unladen)

Empty Running

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120%

10%

20%

30%

40%

50%

60%

398 409 410 397 370

499 536

471

554 585

673

23 20 20 27 28

27

25

36

32 27

31

Port Beach Road

Tydeman Road

%age unladen

2012 2015 2020 20250

100

200

300

400

500

600

0

200

400

600

800

1000

1200

1400

Truck Number Forecasts for Fremantle Ports

(i) Current truck productivity, rail as at present

(ii) Current truck productivity, rail share increased

(iii) Improve truck productivity, rail targets met

(iv) As for (iii) ex-cept 15% of trucks move between 1800 and 0500

TEU's (000's) excl transshipments

Nu

mb

er o

f T

ruck

s p

er h

ou

r(06

00h

rs -

170

0hrs

)

Tra

de

(TE

U's

'000

s)

Current Level

Purpose of StudyDevelop reliable data on the container trucking

industryUnderstand what is driving carrier decisionsIdentify factors impacting on productivityUnderstand impacts of Terminal and Empty Park

booking systemsEngage industry in defining issues and identify

solutionsAssess feasibility of proposed improvement initiativesDevelop recommendation and strategy for the futureConsideration must be given to impacts on rail of

improved trucking efficiency and productivity

Number of Transport Carriers

DPW Patrick Container Parks DPW Patrick DPW Patrick0

20

40

60

80

100

120

140

104 10491 96

122106

121

CMS August 2011 October 2012 March 2013

Patrick

DPWContainer

Parks

DPW PatrickDPW Patrick

5

9 2169

7

68

125 unique carriers

17

79 43

1888

33

139 unique carriers 142 unique carriers

Concentration of Carriers

-

200

400

600

800

1,000

1,200

1,400

1,600

0%

10%

20%

30%

40%

50%

60%

70%

80%

Full TEU per week Cumulative Percentage

Group A Group B Group C Group D

The top 10 carriers handle 50% of the full TEU task The top 31 handle 75% of the full TEU task, as illustrated 111 carriers do the remaining 25% Fremantle carrier numbers high cf other Ports

0500 0600 0700 0800 0900 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000 2100 22000

50

100

150

Inbound UnladenInbound Laden

Hour commencing

Con

tain

er t

ruck

s pe

r ho

ur

Unladen Trucks – Tydeman Rd

0500 0600 0700 0800 0900 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000 2100 22000

50

100

150

Outbound unladenOutbound Laden

Hour commencing

Con

tain

er t

ruck

s pe

r ho

ur

0%10%20%30%40%50%60%70%80%90%100%

%age unladen

0%

20%

40%

60%

80%

100%

%age unladen

Import Export BalanceSignificant imbalance in im/ex volume in WA:

50A% loaded imports, 25% loaded exports

0 200 400 600 800 1,000

Export Full Import Full

TEUs per week

Time of Day Accessing Terminals (TEUs per Hour, DPW & Patrick Combined)

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 -

50

100

150

200

2011

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 -

50

100

150

200

2012

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 -

50

100

150

200

North Fremantle Total Off-Port

2013

Two Way Loading - Patrick

Inbound Outbound

13% 13%

36%51%

51%36%

Inbound Outbound

13% 13%

29%

58%

58%

29%

Laden 2-way Laden 1-wayUnladen

Inbound Outbound

11% 11%

29%

60%

60%

29%

CMS August 2011 October 2012 March 2013

Two Way Loading - DPW

Inbound Outbound

8% 8%

35%

57%

57%

35%

Inbound Outbound

7% 7%

40%53%

53%40%

Laden 2-way Laden 1-way Unladen

Inbound Outbound

8% 8%

42%50%

50%42%

CMS August 2011 October 2012 March 2013

Two Way Loading – Port PrecinctTrucks per 18hr dayTheoretical two way

maximum capacity of 66% (when current two way loading is combined with laden inbound)

However, balance of imports/exports per carrier, operating hours of ECPs, and other factors may restrict this

Inbound Outbound

39% 39%

27% 34%

34% 27%

Unladen Laden 1-way Laden 2-way

August 2012

Improved TTT at TerminalsSignificant reductions in average TTT since 2010Greater ability for operators to move through facilities quicklyPossible efficiencies gained from one-way movements rather than

coordinating Container Terminal & Empty Container Park bookings

Q1 Q2

Q3 Q4

Q1 Q2

Q3 Q4

Q1 Q2

Q3 Q4

Q1 Q2

Q3 Q4

Q1 Q2

Q3 Q4

Q1 Q2

20

22

24

26

28

30

32

34

36

38

Combined Quarterly Average Stevedoring Truck Turn Time (mins)

Ave

rag

e T

TT

(m

ins)

Impact of Increase in 40’ Containers

Unladen 1 x 20' 2 x 20' 3 x 20' 1 x 40' 1 x 20' & 1 x 40'

2006 0.258159477793421

0.172532957890695

0.150646358633047

0.0249584026622296

0.357225137591194

0.0364776654294126

2007 0.284128248531315

0.16329781937668 0.136264064522553

0.0413223140495868

0.332221447774569

0.0427661057452953

2008 0.295314514973492

0.153412618808807

0.119978984572766

0.0293738357930936

0.361035487414625

0.0408845584372164

2009 0.274091864305014

0.166466526568598

0.115781046732713

0.028720104072851

0.372160512358651

0.0427799459621735

2010 0.283627293782291

0.150855157669695

0.116782469267771

0.0289061108141814

0.369499376447533

0.0503295920185284

2011 0.28586595885866 0.163813315638133

0.104401681044017

0.0218093342180934

0.382127847821279

0.0404335324043353

2012 0.305418329842311

0.165158281626685

0.0887246571552781

0.0200766707505039

0.382405248389519

0.03556890487294

5%

15%

25%

35%

Percentage of Trucks carrying various container configurations

Perc

enta

ge o

f to

tal

Issues and possible solutionsInfluences on

trucking productivityPossible responses

Mismatch of hours• Container Parks• Shippers• Limited staging capacity

• Extend ECP hours• Promote extended hours solutions with Industry • More on and off-port staging facilities

VBS slot drop “Mad minute”

Modify VBS structure to enable more efficient truck scheduling

Importance of cycle times

• Reduced TTT times and variability• Incentives to maximise truck loads

Limited 2-way running • Import/export imbalance a major limiting factor• Incentives to maximise truck loads

Dual booking systems • Investigate possible integration

Growth of 40’ boxes •Consider incentives to maximise truck loads• Higher capacity vehicles

Large number of carriers

•Consider changes to VBS if public benefit can be confirmed

Questions?

Doug Brindal Jennifer HallManager Logistics Senior Logistics AnalystP: 9430 3515 P: 9432 3662E: doug.brindal@fremantleports.com.au E:

jennifer.hall@fremantleports.com.au