Papers - April WA Port Operations Taskforce

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1 Papers - April 2018 WA Port Operations Taskforce 1. Executive Summary 2. Agenda and Minutes 3. Report from Fremantle Ports 4. Presentation - High Street Upgrade Project - Main Roads WA 5. Presentation - Tyne ACFS Overview taskforce@fremantleports.com.au

2 Executive Summary - April 2018 Key points of discussion Main Roads WA presented on the recently released concept plan at High Street/Stirling Hwy intersection - see presentation attached. Roundabout is the preferred option for High Street/Stirling Hwy intersection however further technical work is required Tyne-ACFS provided an overview of operations at their new Rous Head ECP - see presentation attached The WA Port Operations Taskforce is to progress discussion with eastern states organisations on issues with direct dehires Trade volumes continue to remain strong Rail volumes exceeded 10,000TEU for the 6 th consecutive month, with additional services being added to accommodate demand Cargolink to introduce Modal booking system with training sessions to be held at the end of April. Further details of the system and associated business rules will be provided ECP Working Group recently held to refresh ECP items specified in the Truck Productivity Strategy and to discuss recent issues raised by operators Key actions arising Taskforce to follow up issue with delays to first day of availability at DPW Taskforce to discuss direct dehire issue with eastern states contacts Tyne-ACFS to follow up on CChain functionality for stack runs Tyne-ACFS to confirm whether redirections to Tyne-ACFS will be red laned (e.g. if a carrier requests to use Tyne-ACFS) Tyne-ACFS to confirm whether carriers can book notifications right up to the beginning of the notification Tyne-ACFS to confirm whether fines will apply to non-edi red lanes. Taskforce to hold further discussions with Main Roads to determine modelling that has been used for the High St upgrade and provide further information about how the proposal fits with broader and longer term planning including Westport Main Roads WA to confirm parties from the transport industry who have been consulted Trade and statistics - March (preliminary only) Compared to same period last year Financial YTD Total TEU +6.4% Total TEU +5.4% Full Imports +1.3% Compared to previous month Full Imports -3.3% Full Exports +22.8% Full Exports +22.3% Total TEU +7% Full Imports +7.5% Full Exports +11.8% ECP Utilisation 81.4% in March Rail Market Share 17.3% in March Rail Market Share 15.5% YTD taskforce@fremantleports.com.au

3 Agenda & Minutes WA Port Operations Taskforce April 2018 Thursday, 5 April :00am-10:00am Fremantle Ports Chairperson Executive Officer Graeme Wilson Sophie Gillespie Next Meeting Thursday, 3 May 2018 Agenda 8:00am Welcome, opening comments and apologies Graeme Wilson 8:05am Confirmation of last month s minutes Graeme Wilson 8:10am High Street Upgrade Project Main Roads WA 8:30am Tyne-ACFS ECP Update Arthur Tzaneros 8:50am Maersk direct dehires All 9:00am Trade statistics overview Sophie Gillespie 9:05am Round table Container terminals Empty container parks Rail Shipping Australia WARTA Transport operators TWU Customs brokers/freight forwarders CBFCA Australian Border Force Department of Agriculture & Water Resources Main Roads WA Freight & Logistics Council Fremantle Ports All 9:55am General business and meeting close out All

4 Minutes Actions Welcome, opening comments and apologies See table below for attendance and apologies Confirmation of last month s minutes Minutes from March confirmed with no changes High Street Upgrade Project Presentation from Main Roads attached Roundabout is preferred option however other options are still being investigated 300 crashes along that section of road including truck rollovers Concept plan includes slip lane with direct access to High Street/Leach Hwy for trucks including 2 lanes (i.e. no merging) Proposal is to remove direct access and some intersections to properties and netball courts along Leach Hwy with a separate service lane Roundabout is proposed to be 2 lanes from High St to Stirling Hwy so that lane changes aren t required 60m diameter roundabout Further technical work is being undertaken Questions were raised by members as to who from the freight industry was consulted before the plan was released and who has been consulted with following the plan being released Main Roads noted that this is the beginning of the process and there is still significant planning work and consultation to be undertaken Questions were also raised by members as to whether the concept has considered the appropriate increases in heavy vehicles as trade volumes grow. Main Roads confirmed that if fatal flaws are identified with the concept alternatives options will be investigated. Concept plan has been designed to accommodate traffic volumes until approximately 2031 with the Westport Taskforce looking at longer term options. Members also noted that planning needs to consider the future use of High Productivity Vehicles (HPVs) Land acquisition is required next to the golf course which may be quite a lengthy process. All properties that need to be acquired have been. Construction period not known however it is likely to be around 18 months. Although members agreed that a solution is required, the plan that has been released is perceived as being a short term solution only that needs to be considered as part of the wider network plan Main Roads WA to confirm parties from the transport industry who have been consulted Taskforce to hold further discussions with Main Roads to determine modelling that has been used for the High St upgrade and provide further information about how the proposal fits with broader and longer term planning including Westport

5 Tyne-ACFS ECP Update Presentation by Tyne-ACFS attached 21 internal queuing spaces Will consider transitioning to 24 hours if the support from industry is there Carriers will not be turned away, however there will be a fine for arriving out of window It was noted that nothing is set in stone and Tyne-ACFS will be flexible and consider feedback from industry A question was raised about carriers being charged the notification fee who return the notification prior to the slot opening, with Tyne- ACFS confirming this still applies regardless of when the notification is cancelled (i.e. even if cancel more than 2 hours before the notification). Tyne-ACFS to confirm whether carriers can book notifications right up to the beginning of the notification. Carrier Access Arrangements to be updated on Containerchain website Tyne-ACFS to confirm whether redirections to Tyne-ACFS will be considered red lanes (e.g. if a carrier requests to use Tyne-ACFS). Dual loading - will need to work with CChain however won't charge an additional fee. Expectation of TTTs is 15 minutes ECP capacity is around 5500TEU All Tyne-ACFS east coast ECPs are 24hours 5pm to 5am (after hours) - different charging structure with afterhours notifications having a higher notification fee ($13.50 compared to $10 during the day). The take up of this time period on the east coast varies, with Melbourne doing around 20-35% through the night and Brisbane at least 100 boxes a night. Sydney has the smallest volumes during the after hours period of around 30 boxes a night. Carriers will be offered stack runs at night - normal fees will still be applicable but dedicated stack runs will be allocated - Tyne-ACFS to follow up on CChain functionality. Carriers won t be charged for shipping line issues, Tyne-ACFS to confirm whether this applies to non-edi red lanes. All trucks will stop and get confirmation/instruction from the forks within the site (site plan attached) Maersk direct dehires Taskforce to discuss direct dehire issue with eastern states contacts ACFS Port Logistics noted they have implemented a significant surcharge for dehires that do not meet certain criteria (associated with traditional ECPs) Freight forwarders are also negotiating with shipping lines to not accept direct dehires. Tyne-ACFS to confirm whether carriers can book notifications right up to the beginning of the notification Tyne-ACFS to confirm whether redirections to Tyne-ACFS will be red laned (e.g. if a carrier requests to use Tyne-ACFS) Tyne-ACFS to follow up on CChain functionality for stack runs Tyne-ACFS to confirm whether fines will apply to non-edi red lanes Taskforce to discuss direct dehire issue with eastern states contacts Trade statistics overview See attached Fremantle Ports report for March trade statistics

6 Volumes are continuing to remain strong and it will be interesting to see volumes for April and May which are traditionally lower periods. Round table Patrick and Cargolink Strong volumes as expected, steady and competitive TTTs even through Easter period. Cargolink rolling out Modal booking system, training sessions to be held end of April. Modal expected to mimic current 1-stop system, and Cargolink will be selected in a drop down list (as per the current VBS system) The system should streamline what carriers need to do and make it a more automated process. It will also increase efficiencies for the Cargolink internal system as well. Commercial team will advise of fees, whether there will be no shows etc. Flexibility will remain. Cargolink have requested 1-Stop to present at the next Taskforce meeting. DPW ILS/ICS TTT 20.6mins 1 vessel omission Above budget slightly Vessel service EAX delayed a week, and will probably see 1 less vessel by the end of the year. DPW worked over Easter and will offer weekends if required March another record month, over 10,000 TEU for 6 th consecutive month. Approximately 17% market share Started running a 3rd train, which is likely to run 2 days a week. Still working with the PTA on some areas. FIT now open 24/5 ICS operating well, around 85-90% capacity Grain, hay and malt exports still strong Customs Brokers and Freight Forwarders/Transport Operators Free time start at discharge v first day availability at DPW is still an issue. The Chairman noted that this has not yet been progressed however it will be followed up. ECPs issue over the last month with all redirections going to red lanes. Slots also booked out 5-6 hours in advance and bulk runs occurring at 6-7am has also created delays. Freight and Logistics Council WA Noise and vibration of freight rail, results still being finalised however picture overall is better than expected. More attention to maintenance and level crossing noise. Needs to better Government policy and greater awareness and acceptance by the community. Taskforce to follow up issue with delays to first day of availability at DPW

7 Looking to do something like the airport about notifications about noise when purchasing land. Western Roads Federation Cyclist safety concerns to be addresses through a joint campaign Road user charges - Kwinana Council implementing significant charges Permit delays Senate inquiry TWU Negotiations for ACFS and Qube agreements progressing well Other ECP Working Group meeting held to refresh items coming out of the TPS and discuss issues that had been raised by operators recently

8 Attendees Adam Woods Adrian Evans Alan Mason Angelina Crozier Anthony Tuxford Arthur Tzaneros Bradley McManus Cam Dumesny Christopher Sharples Darrin Smith David Anderson Eric Englund Frank Blühe Glenn Hack Graeme Wilson Leon Ruri Mark Brownell Mark Valsecchi Michael Pal Richard Ananda Rob Voysey Shaun Hack Sonia Beros Sophie Gillespie Sue Hellyer Troy Storer JD Container Logistics Maritime Union of Australia Department of Agriculture and Water Resources CC Containers Pty Ltd DP World (Fremantle) Ltd ACFS Port Logistics ACFS Port Logistics Western Roads Federations Department of Transport Intermodal Link Services Tyne-ACFS CILTA/Engineers Australia NCL Transport EES Shipping WA Port Operations Task Force WA Transport Workers' Union Freight and Logistics Council Lou Valsecchi & Associates Fremantle Ports Main Roads WA ACFS Port Logistics EES Shipping Main Roads WA Fremantle Ports Fremantle Ports Patrick Terminals Apologies Alison Coates Brett Irvine Darren Byrne Glen Radica Harvey Mack John Park John Ward Keith Hampson Kellie Houlahan Matt Bronickis Robert Boyce Shane Hughes Stefan Reynolds Fremantle Ports Qube Logistics Qube Logistics Fremantle Ports JD Container Logistics Customs Brokers & Forwarders Council Of Aust. AWH Pty Ltd Curtin University Freight and Logistics Council VISA Global Logistics Pty Ltd Mediterranean Shipping Company (Aust) Pty Ltd ICL DP World

9 WA Port Operations Task Force: Report from Fremantle Ports Meeting Date: 5 th April Trade Statistics Monthly Results Total trade in February was up 5.2% compared to the same period last year. Loaded imports were up 15.2% and loaded exports up 1%. Empty imports were down 12.9% and empty exports were down 7.3%. In March, total trade was up 6.4% compared to the same period last year. Loaded imports were up 1.3% and loaded exports up 22.8%. Empty imports were down 29.5% and empty exports up slightly. YTD total trade is up 7%, with loaded imports up 7.5% and loaded exports up 11.8%. There were 37 container vessel visits in February and 43 in March. Variance to YTD Variance Variance to Variance to Feb-18 TEU Containers 2017 to FY16/17 previous month 2017 Total 59, % 7.0% -11.4% 39, % Loaded Imports 29, % 8.3% -8.5% 19, % Empty Imports 2, % -3.7% 27.0% 1, % Loaded Exports 18, % 10.4% 2.2% 12, % Empty Exports 9, % 1.0% -36.6% 6, % Variance to YTD Variance Variance to Variance to Mar-18 TEU Containers 2017 to FY16/17 previous month 2017 Total 62, % 7.0% 5.4% 41, % Loaded Imports 28, % 7.5% -3.3% 18, % Empty Imports 1, % -7.3% -10.3% 1, % Loaded Exports 22, % 11.8% 22.3% 15, % Empty Exports 10, % 1.0% 3.6% 6, % 2. Rail Services Rail volumes accounted for 17.2% of total trade in February and 17.3% in March (based on preliminary statistics). Rail share YTD is 15.5%.

10 3. Empty Container Parks: ECP stocks and capacity utilisation Container Parks stocks, as recorded on the 15 th of each month, are shown in the table below. Overall stocks in March were at 81.4%, up from 78.5% in February. March 2018 Capacity (TEU) Holding 20' Holding 40' Current Month Holding TEUs % Utilisation Share of Total Capacity Share of Total Holdings QUBE Container Park 7,500 3,799 2,343 8, % 40.4% 56.2% QUBE Central 5,850 1,044 1,132 3, % 31.5% 21.9% ICL 1 1, % 5.9% 4.7% ICS (Forrestfield) 2, , % 12.9% 14.9% Patrick Cargolink 1, % 9.2% 2.2% Total Container Parks 18,550 6,021 4,538 15, %

11 4. 1-Stop Container Terminal Statistics i. Containers handled peak v off-peak 100% 90% 1% 5% Containers Handled Peak v Off-Peak (Normal R&D) 10% 6% 8% 7% 11% 80% 70% 25% 26% 25% 60% 50% 40% 30% 94% 65% 92% 66% 92% 64% 20% 10% 0% DPW Patrick DPW Patrick DPW Patrick Jan Feb Mar Peak Off-Peak Weekends % Containers Handled Peak v Off-Peak (Total) 100% 90% 80% 70% 6% 13% 13% 24% 8% 10% 9% 12% 12% 9% 24% 25% 60% 50% 40% 81% 80% 82% 30% 63% 66% 64% 20% 10% 0% DPW Patrick DPW Patrick DPW Patrick Jan Feb Mar Peak Off-Peak Weekends

12 ii. Truck turn time (TTT) - R&D only Average TTT (Normal R&D) DPW DPW DPW Patrick Patrick Patrick Jan Feb Mar Jan Feb Mar Monthly Peak Off-Peak Weekends iii. Container turn time (CTT) - R&D only Average CTT (Normal R&D) Minutes DPW DPW DPW Patrick Patrick Patrick Jan Feb Mar Jan Feb Mar Monthly Peak Off-Peak Weekends

13 High Street upgrade project Stirling Hwy to Carrington St WA Port Operations Taskforce 5 April 2018

14 2 Richard Ananda - Project Manager Sonia Beros Strategy and Communications Carolyn Walker - Community and Stakeholder consultant

15 3 May 2017 State Budget, $118M allocated for this project as part of $2.3b road and rail infrastructure package for WA funded by State and Commonwealth governments Funding based on the concept developed for High St in 2013 The Minister for Transport asked Main Roads to investigate alternative treatment options Consultation to date has included, Local State and Federal members of Parliament, the Mayor of Fremantle and City of Fremantle technical staff Community consultation will begin in late April/May

16 4 A Multi-Criteria analysis was undertaken analysing different intersection options for Stirling Hwy / High St intersection Upgrade options for High St (Carrington St and Stirling Hwy) have been considered taking into account stakeholder feedback received from previous work in 2013 An option was presented to the Hon. Minister for Transport, Mayor and City of Fremantle technical staff in Feb 2018; agreed to progress this option for stakeholder and community consultation

17 5 Improved road user safety Improved efficiency for freight and general traffic Vertical geometry of High St Direct driveway access onto High St from private properties Community severance Impact on major trees in the road reservation Impact on the golf courses Netball Parking

18 Concept Plan

19 7

20 8 Further technical investigations eg traffic analysis and stability modelling of the roundabout Seek feedback from community and industry to further develop concept Finalise 15% design concept Seek approvals Start land acquisition process Issue tender in late 2018 / early 2019 Award tender June 2019

21 Questions

22

23 Tyne ACFS - Objective To be Australia s leading empty container depot provider To be the premier empty container depot performance operator for Shipping companies Transport companies Container terminals Fremantle Port The Support of all stakeholders in the supply chain is absolutely imperative to our business!

24 ACFS Perth Empty Park 40,000 sqm Empty storage 6,147TEU 32 Reefer Points Onsite queuing for 21 Road trains Inter-connecting access to the North Quay Rail Terminal 1,000 sqm wash bay 672 sqm repair bay 900 sqm of dedicated survey pad

25 What are the current operating hours? Mon Fri 06:00 23:00 Sat 06:00 14:00 Sun Closed Do we have breaks and or stoppages? No Stoppages. We have rotating staff to cover all operating hours What are the current shipping lines? CMA-CGM/APL/ANL COSCO How many shipping lines are currently in testing? Other shipping lines are currently in testing Expected start date within the next 30 days How many forklifts do we have operating? Currently we have 3 operating with 1 arriving in the week. 3 x Brand new twin pick 7 high stackers 1 x stacker to service workshop / wash pad. (Currently in transit)

26 How many slots do we have available per hour? Currently we have 10 Max per half Hour. Increased to 20 per half hour and will take affect Thursday 05/04/2018. Are we going to increase the number of slots per hour on volume demand? Look to 30 per half hour with the increase in demand. At what point will Tyne ACFS consider going 24hrs? When bookings exceed 20 per half hour, Tyne ACFS will consider 24hr operations Bulk Runs Preference is to do Repo bulk runs on the PM shift. From 17:00 onwards wharf permitting. By arrangement, we can also service de-hire bulk runs at a minimum of 40 TEU per hour with 4 road trains running. Need Cooperation from terminals for PM bulk runs? Tyne ACFS is in discussions with terminals to organise PM bulk runs into terminal as a preference

27 What is our position in regards to flexibility on time slots? Tyne ACFS will consider on time arrival as 1hr either side of the 30min slot window On time is a 2hr 30min window no additional charges What do we do with late arrivals outside the tolerance? Tyne ACFS will service all carriers regardless of what time they turn up, but will charge a early / late slot fee of $15. This fee may also be known as a manual processing fee. Reason for manual processing fee as follow, Avoid Congestion No penalty for Good behaviour Sets pricing signal for poor operators Allows Tyne ACFS to adequately service out of slot carriers, without material delays At what point do we capture arrival time? We capture arrival times half way up the truck queuing lane if they are green lane. If they are red lane there is no time recorded until they are processed at the gate.

28 Are we charging any penalties at the present? No. We will look to do this as of May 1 st 2018 What Tyne ACFS charging for early / late time slots and or no shows? The initial slot will be charged, plus an additional $15 for early / late slots. Outside the 2hrs 30min Carriers who return their slot prior to the slot opening, will only be charged the slot fee No shows will be charged at $50. This will deter carriers from wasting slots Is Tyne ACFS using the Container chain Green and red lane system effectively now? o Yes. What is the penalty if any using the red lane? o No current penalty o Manual processing fee ($15) will be charged for red lane in future

29 Will Tyne ACFS be promoting dual loading? (Unloading import, picking up export) Yes. What happens if the export slot is for a later period? We will load this unit if available. If not they will need to return.(we will take this case by case). We will be giving a clear preference for green lane? Yes Red lane will always be held whilst we service green lane as a preference What are we going to do to promote our preference for green lane, whilst accommodating red lane? Green lane will get priority at all times Tyne ACFS does not support turning carriers away. We are a service business first! We have a charging structure to support green and red lane effectively

30 Capacity Empty Park TEU is 6,147 How vehicles operate within the site (where to go for exports, where to go for imports) Refer site Map (end of presentation) Expected truck turn times from other operations Our Facilities on the East Coast have an average under 15min. This will be our target as an average What makes Tyne ACFS different from the other operators TYNE ACFS is well knowing for their focus on service. TYNE ACFS has extended hours of operations above competitors. This is something we will explore when volumes allow. Tyne ACFS has allocated significant yard space to truck staging, therefore no risk of trucks queuing out the gates. How will we communicate delays / congestion to industry This will be provided through Container Chain. Will communicate with Transport Management of Fremantle Ports to have signs within the ports present display messaging.

31 TRUCK QUEUING UPTO 21 ROAD TRAINS GATEHOUSE GATEHOUSE TRUCK UNLOAD FORK WASH BAY AQIS WASH BAY REPAIR WORKSHOP SURVEY PAD REEFER SERVICES HEAVY YARD CONTAINER STACKING CONTAINER STACKING CONTAINER STACKING CONTAINER STACKING CONTAINER STACKING TRUCK EXIT LANE 7 ROADTRAINS ABLE TO AWAIT LOADING/ DO TWISTLOCKS BACK GATE TO NQRT

32 Thank you