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JULY 2017 mial.com.au

NORTHERN AUSTRALIA EDITION

2 MIAL MAX

Teamwork is the core of any organisation, strengthen your team by taking part in our team building events.

We cater for a totally unique team building program, utilising the world renowned maritime training facilities at the Australian Maritime College (AMC), at the University of Tasmania, leaders of today’s maritime industry.

Our program has been designed to establish new team connections and strengthen existing teams through a mixture of fun and serious situations, challenging the overall team dynamic.

Program overview• Survival pool: Night time abandonment drill, designed to challenge the team dynamic.

• Fire and Smokehouse: Live fire search and rescue scenario - navigate the structure to find missing casualties.

• Flooding: Responding to an emergency situation involving flooding on a training vessel, the team must work together to manage the situation.

• Lifeboat: Survival is the name of the game.

• The Last Great Escape: Incorporating survival, fire and flooding programs, plus overnight accommodation as a team at AMC.

Enquire Now.

amcsearch.com.ausearchinfo@amc.edu.au+613 6324 9850 AMC SEARCH

SCommercial arm of the Australian Mari� me College

Corporate challenges and team building with AMC Search

3JULY 2017

CONTENTS

Maritime Industry Australia Ltd

473 St Kilda Road

Melbourne VIC 3004

T: +61 3 9647 6000

mial.com.au

If you have any questions or comments relating to any articles in this newsletter, please feel free to contact the Max Editor on 03 9647 6000 or admin@mial.com.au.

About MIAL Max Magazine is published quarterly by Maritime Industry Australia Ltd, 473 St Kilda Road, Melbourne 3004. Ph: 03 9647 6000. Disclaimer: Whilst every effort has been made to ensure the accuracy of the information contained in this publication at the time of going to press, the Maritime Industry Australia Ltd (MIAL) makes no warranty as to the accuracy or completeness of information contained herein. MIAL shall not be liable for any loss, damage or expense howsoever incurred by any organisation or individual relying on information or statements contained in this publication. MIAL has no control over the content contained in advertisements within this publication and advertisers are solely responsible for the content of the advertising material which they submit to us. Any views or opinions expressed in articles contained within this publication are those of the author of the article and are not necessarily held by MIAL.

WELCOME FROM THE CHAIRMAN AND THE CEO 4

NORTHERN AUSTRALIA BY THE NUMBERS 5

LEADING IN THE NORTH 7

OUR NORTH, OUR FUTURE 25

A CRUISE FOR EVERY CUSTOMER 28

MEMBER NEWS 30

NEW MEMBERS 32

THE 457 VISA, BEING REMOVED, REINVENTED OR REBORN? 34

CRISIS SIMULATION 35

INDUSTRY NEWS 36

ASBESTOS 38

SEA17 PHOTOGRAPHIC CONTEST FINALISTS 39

Front Cover Image The adventure-cruise ship TRUE NORTH doing what bigger ships cannot do – getting up close and personal with the King George Falls. Image courtesy of True North Adventure Cruises.

Teamwork is the core of any organisation, strengthen your team by taking part in our team building events.

We cater for a totally unique team building program, utilising the world renowned maritime training facilities at the Australian Maritime College (AMC), at the University of Tasmania, leaders of today’s maritime industry.

Our program has been designed to establish new team connections and strengthen existing teams through a mixture of fun and serious situations, challenging the overall team dynamic.

Program overview• Survival pool: Night time abandonment drill, designed to challenge the team dynamic.

• Fire and Smokehouse: Live fire search and rescue scenario - navigate the structure to find missing casualties.

• Flooding: Responding to an emergency situation involving flooding on a training vessel, the team must work together to manage the situation.

• Lifeboat: Survival is the name of the game.

• The Last Great Escape: Incorporating survival, fire and flooding programs, plus overnight accommodation as a team at AMC.

Enquire Now.

amcsearch.com.ausearchinfo@amc.edu.au+613 6324 9850 AMC SEARCH

SCommercial arm of the Australian Mari� me College

Corporate challenges and team building with AMC Search

MIAL would like to thank AIRBOLT – The truly smart travel lock for their support.

AIRBOLT enables you to track your luggage anywhere in the world via an app.

The AIRBOLT was crowdfunded and is a local Melbourne idea and product.

It was launched in May and costs USD$79.95. To order go to: theairbolt.com

4 MIAL MAX

WELCOME

from the Chief Executive Officer

from the Chairman

We have been very interested in the “Our North, Our Future: White Paper on Developing Northern Australia” and the subsequent formation of the business stakeholder group to develop a plan for improving aviation and surface transport connections in northern Australia.

Many MIAL members are active in Northern Australia and expertly placed to provide advice on how to improve maritime connectivity in Northern Australia. To date requests for these companies to contribute to the development of the Northern Australia Transport Study, an area where there is huge potential and strategic value in maximising the use of sea transport, have met strong resistance.

And the question must be asked…why?

Why would the government not engage with the maritime transport operators active in the area?

These companies have gone out of their way to express their interest in being involved. They have demonstrated their commitment to ensuring full and proper consideration of the issues they face by preparing a briefing paper and travelling to Canberra to present to the Joint Standing Committee on Northern Australia.

And yet renewed offers to engage actively and provide expert insight to make the Study the best possible blueprint for the North have gone unanswered.

While ‘transport connections’ are critical to the region, the work of maritime operators in Northern Australia goes well beyond providing transport. Indeed, maritime operations are essential for the construction, maintenance and ongoing operation of critical Northern Australia assets such as offshore oil and gas installations, subsea pipelines and cables, wharves, jetties and navigation aids, and offshore tourism anchorage points/destinations. In addition, fishing fleet support and emergency response and salvage are all services that fall outside of a ‘transport’ role.

Many maritime businesses based in Northern Australia also operate in the Asia-Pacific region and already contribute to strong economic connection with the booming Indo-Pacific region as well as possessing

strong people-to-people links with neighbouring countries.

Therefore, supporting a stronger maritime sector in Northern Australia has benefits that flow far beyond the ‘transport’ task in Northern Australia and would in fact benefit a very broad cross section of the Northern Australia economy and by extension the Australian economy in general as well as strengthening ties with our near neighbours.

MIAL has made a submission on the White Paper highlighting the barriers or impediments to maritime operations and providing solutions and ideas for growth and development. These broadly fall under the areas of: fiscal policy; customs treatment; workforce; infrastructure; economic constraints and coastal trading policy.

In short, a viable, sustainable, innovative maritime sector operating in Northern Australia allows, (amongst other things):

• products (export and imports) to reach their markets; • remote coastal and island communities to be serviced regularly

without incurring the expense of air links;• offshore assets to be installed and maintained to support resource

development;• safe navigation aids; offshore mooring points and port construction

and maintenance; • tourism opportunities and contribution to be maximised via cruise

ship experiences.

Let’s hope maritime activity in our north is given the focus, credit and support it needs to be part of the next stage of developing our north and that the Government take advantage of the expertise offered by MIAL member companies who remain willing and able to add value to the Northern Australia Transport Study.

Teresa Lloyd Chief Executive Officer

Welcome to another edition of MAX. It is hard to believe we are already half way through 2017 but thankfully the MIAL secretariat has been as busy as ever and working hard on behalf of our valued members.

MIAL is committed to educating and raising awareness of the maritime nation that is Australia. All too often our considerable on-water activity is overlooked or forgotten, but of course as an island nation our commerce and our Government are dependent on vessel operations to keep the nation ticking. We look forward to broad engagement with those individuals and organisations that share our vision of Australia as a significant maritime nation.

Our SEA 17 conference on the Gold Coast in March was a powerful gathering of the Australian maritime industry and we thank our keynote speaker, the Chief of Navy, Vice Admiral Tim Barret, AO CSC RAN, for his insightful, visionary and unifying comments regarding future closer ties between the navy and the merchant marine. We also thank the CEO of AMSA Mr Mick Kinley and his team for their generous contribution to the discussions at the conference and building ever closer ties between the industry and the primary regulator.

The MIAL 2017 maritime community dinner in Perth was a diverse assembly of senior executives which provided an informal and collegiate opportunity to update and share ideas. A similar event will be held again next year and we look forward to that opportunity to once again come together as a group.

The theme of this edition of MAX revolves around Northern Australia’s maritime activity which is incredibly active and diverse, but which faces unique hurdles due to geography, demographic and climate. However, its potential is enormous and needs encouragement, when taking into account its proximity to Australia’s near north neighbouring countries.

Thank you for your ongoing support of MIAL, and stay safe out there.

Noel G Hart Chairman

5JULY 2017

Table 1: Northern Australia key statistics

North Queensland

North Western Australia

Northern Territory

Northern Australia Australia

Demographics

Population (‘000) 956.4 114.4 244.5 1,315.3 23,786.1

Population growth (per cent) (one-year / 10-year) 0.6 / 19.8 -0.7 / 27.0 0.4 / 18.7 0.5 / 20.2 1.4 / 17.8

Aged < 15 years (per cent) 21.2 19.3 22.1 21.2 18.8

Aged 15–64 years (per cent) 66.6 76.4 71.1 68.3 66.2

Aged > 64 years (per cent) 12.2 4.4 6.9 10.5 15.0

Employment

Labour force (‘000) 482.5 74.9 139.0 696.4 12,677.0

Estimated total industry employment ('000) 439.9 67.2 132.3 639.4 11,927.9

Unemployment rate (per cent) 8.4 6.7 3.5 7.2 5.6

Participation rate (per cent) 64.1 77.9 74.3 67.2 64.7

Actively trading businesses (per cent)

Non employing 59.4 57.9 59.0 59.3 60.6

1-4 employees 26.4 23.6 23.7 25.9 27.6

5-19 employees 11.4 13.7 13.1 11.7 9.3

20-199 employees 2.7 4.7 4.1 3.1 2.4

200+ employees 0.1 0.1 0.1 0.1 0.2

Total number of businesses (‘000) 73.9 5.5 14.0 93.4 2,121.2

North Queensland North Western Australia Northern Territory Northern Australia

Rank

1 Health care 12.0 Mining 28.7 Public admin 17.8 Health care 11.2

2 Retail 9.8 Construction 11.5 Health care 11.9 Public admin 9.1

3 Education 8.8 Public admin 8.5 Construction 11.4 Mining 9.1

Table 2: Top three employing industries (per cent share of total employment)

Table 3: Mining regions in Northern AustraliaBowen Basin

Metallurgical and Thermal CoalPilbaraIron ore

Key statistics

Population (‘000) 418.1 65.9

Unemployment rate (per cent) 6.2 2.9

Participation rate (per cent) 69.5 86.7

Mining statistics

Employed in mining (per cent) 11.2 38.4

Total employment in mining (‘000) 23.8 16.8

!

!!

Weipa

Bowen

Bamaga

Ingham

NewmanWinton

Cairns

MackayDampier

Clermont

Atherton

Kununurra

Mount Isa

Normanton

Katherine

Gladstone

Townsville

Palmerston

Pine Creek

Borroloola

Rockhampton

Tennant Creek

Alice Springs

Fitzroy Crossing

Port Hedland

Adelaide River

PapuaNew Guinea

Indonesia

Timor LesteIndonesia

Timor Sea

Indian Ocean

Gulf ofCarpentaria

Coral Sea

Tropic of Capricorn

Darwin

BroomeDerby

Karratha

OnslowTom Price

NORTHERN AUSTRALIAby the numbers*

Source: Department of Infrastructure and Regional Development, 2015b

* Source: Department of Industry, Innovation and Science. Office of the Chief Economist, Sept 2016.

6 MIAL MAX N

LEADING in the NORTH

N 7

MIAL Members who operate in Northern Australia.

8 MIAL MAX

ANL has a long history in Australian shipping, being a government owned shipping line involved in overseas and domestic shipping for most of its history. Now owned by CMA CGM, the world’s 3rd largest container line in the world, ANL is still headquartered in Melbourne and remains a major carrier to, from and around Australia. ANL has offices around the globe covering more than 400 ports worldwide.

ANL is the major carrier of containerised domestic freight between East Coast Australia ports and Western Australia using vessels already engaged on international voyages. In this way we can offer shippers a reliable fixed day service at far cheaper rates than road or rail. We recently purchased the Perkins shipping service from Toll which trades between Singapore, Dili and Darwin on a fortnightly basis. This service

in conjunction with our weekly services from other Australian ports, means we can cost effectively carry Australian domestic freight to Darwin via Singapore. ANL has an office in Darwin and we are actively looking for opportunities to expand trade into and out of the Northern Territory. As an example, ANL is the major carrier of export meat from the AACO processing facility in Darwin using refrigerated containers and connecting these with our worldwide network via Singapore.

ANL’s involvement with Darwin is not limited to just sea freight as we offer container hire and sales (including equipment for the offshore sector) as well as a complete logistics service for both sea and air freight.

ANL CONTAINER LINE

9JULY 2017

Carnival Australia, which accounts for seven iconic cruise brands has been pioneering new cruise destinations in Northern Australia and Papua New Guinea.

The privately owned Conflict Islands - one of the most remote island groups in the world – is the latest tourism hot spot for Australian holidaymakers with P&O Cruises making the first cruise ship calls to the picturesque Papua New Guinea atoll this year.

With its expanded fleet cruising from eight homeports, the cruise line has released details of its latest itineraries.

Carnival Australia is part of Carnival Corporation & plc and represents the world’s most popular cruise brands including Carnival Cruise Line, Cunard Line, fathom, Holland America Line, P&O Cruises, P&O Cruises World Cruising, Princess Cruises and Seabourn. Together these brands represent approximately 80 per cent of the Australian and New Zealand cruise market.

CARNIVAL AUSTRALIA

10 MIAL MAX

DOF draws on 35 years’ experience building and managing a world-class, technologically advanced fleet. The global fleet of 67 high powered and environmentally-friendly vessels is divided into three segments: Platform Supply Vessels, Anchor Handler Vessels and Subsea Support Vessels. The fleet operates on charter to Oil and Gas Majors across the globe. In-house newbuild, technical management and maintenance teams, along with dedicated crews, extend capability and enhance operational safety. Nine of the fleet are currently operational and managed in Asia Pacific region.

DOF’s vessels are purpose built to match the challenges of the offshore sector and designed for operations across a wide range of water depths and environmental conditions.

DOF

11JULY 2017

SolstadFarstad has more than 60 years of experience within various shipping segments, and is currently the leading provider of specialized offshore tonnage to the international oil and gas industry.

June 2017 saw the merger of the Norwegian ship owners Solstad Offshore, Farstad Shipping, Deep Sea Supply and Rem Maritime into SolstadFarstad. SolstadFarstad is a global company consisting of approximately 150 vessels with more than 3.000 employees - one of the largest of its kind. Our activities are mainly concentrated on the markets in Europe, Brazil, Australia and Asia. The company’s head office is located in Skudeneshavn, Norway.

We operate advanced vessels worldwide, often under extreme weather conditions. We always focus on health, safety, environment and quality in all our operations. We are flexible and reliable, and care about our employees and the environment. The company is always developing to ensure a leading and competitive position in the markets where we are represented. This is fundamental in maintaining and strengthening our competitive position.

The activity of SolstadFarstad is aimed at the international oil and gas industry.

SOLSTADFARSTAD ASA

12 MIAL MAX

Maersk Supply Service provides marine services and integrated solutions to the energy sector worldwide. Maersk Supply Service is the market leader in deep-water services such as anchor handling in ultra-deep water, mooring installations, rig moves and transport of equipment to drilling rigs and production units.

Maersk Supply Service’s Integrated Solutions delivery model is centered around the company’s global assets. Whether it is decommissioning, mooring or towing services, Maersk Supply Service designs and implements solutions that meet the specific requirements of the customers. Maersk Supply Service’s Integrated Solutions business is supported by the

company’s 50 years of offshore experience and privileged access to a global network of people, assets and strategic industry partners. Maersk Supply Service guarantees the relevant resources and capabilities to deliver safe and efficient project solutions for customers.

Maersk Supply Service employs an international staff of around 1100 offshore and 200 onshore people. Headquartered in Lyngby, Denmark, Maersk Supply Service is represented globally with offices in Aberdeen, St. John’s, Rio de Janeiro, Lagos, Luanda, Accra, Houston, Singapore, and Perth.

MAERSK SUPPLY SERVICE

13JULY 2017

With its head office located in Fremantle, Western Australia and international headquarters in Singapore, ASX listed MMA is one of the largest marine service providers in the Asia Pacific region. MMA owns and operates over 40 modern offshore vessels, an Australian Slipway Facility and two international onshore facilities in South East Asia.

MMA specialise in providing marine solutions and expertise to the offshore oil and gas industry. MMA’s service is underpinned by their Target 365 culture of striving for a “Perfect Day, Every Day” – one where each day is free of injuries and incidents. The company believe in partnering with clients to deliver fit-for-purpose, innovative, marine solutions. MMA’s service offering is backed up by a high specification offshore vessel fleet, and strategically located onshore facilities which enable us to leverage our quality marine expertise. The mix of these assets enables bespoke, value-added solutions to the industry.

Vessel Operations

With vessels operating in the majority the of oil and gas hubs around the globe, MMA’s fleet includes specialised IMR vessels with subsea capabilities through to multi-purpose offshore spot fleet vessels. Currently four of MMA’s Platform Support Vessels (PSVs) are supporting production contracts in Northern Australian (i.e. Woodside North West assets, INPEX’s Ichthys Project and ConocoPhillips Bayu Undan facilities). Three of these PSV’s will operate out of Darwin by end of 2017 with a collective contract value of USD225m.

Onshore Facilities

MMA operates a Slipway Facility in Dampier, Western Australia. MMA’s Dampier Slipway is strategically located in Dampier, Western Australia and is capable of docking vessels up to 3,500 tonne displacement. The Slipway is a key asset in that it provides timely maintenance and repair of MMA’s expanding fleet in the North West and ensures that MMA is capable of servicing its clients’ marine requirements safely and with a degree of flexibility that no other operator in the region can provide

MMA’s Batam Shipyard facility includes an 18.1-hectare yard site and five construction berths capable of building high quality commercial vessels and customised offshore support vessels, as well as oil and gas modular fabrication. The Shipyard commenced operations in 1993 and has successfully delivered over 30 vessels in the last 20 years.

MMA’s Tuas Onshore Facility includes a 2.5-hectare yard site focusing on vessel mobilisations and demobilisations for the oil and gas industry. The facility is targeted as a multi-user oil and gas onshore support facility.

MMA OFFSHORE LTD (MMA)

14 MIAL MAX

Established in 1985, North West Shelf Shipping Services Company (NWSSSC) is the shipping adviser to International Gas Transportation Company Limited (IGTC), the Bermuda registered parent shipping company of the North West Shelf Project participants.

NWSSSC is responsible for providing operational, commercial, marine assurance and technical expertise to support the safe, efficient and reliable transportation of LNG from Australia’s North West Shelf to the Project’s long term customers in Japan, South Korea and China.

The North West Shelf Project owns seven LNG vessels, whilst others are time chartered.

Since 1989 the North West Shelf Project has safely and reliably delivered over 4,000 LNG cargoes.

Both IGTC and NWSSSC are owned by the North West Shelf Project participants who are BHP Billiton Petroleum (North West Shelf) Pty Ltd, BP Developments Australia Pty Ltd, Chevron Australia Pty Ltd, Japan Australia LNG (MIMI) Pty Ltd, Shell Development (Australia) Pty Ltd and Woodside Energy Ltd.

NORTH WEST SHELF SHIPPING SERVICES COMPANY

15JULY 2017

Pacific Marine Group (PMG) is a privately owned company that has operated for over 25 years and employs around 100 people. PMG operates a marine complex in Townsville and is the provider of a range of marine contracting, commercial diving and vessel and barge hire services throughout New Zealand, the Pacific, New Guinea and Australia, in particular Northern Queensland and the Northern Territory.

Specific capabilities include:

• Over 20 000m2 of waterfront hardstand – available for project laydown, site erection prior to barge loading etc.

• Wharf rated to 200T crane capacity, with ability to upgrade capacity if required.

• Barge ramp.

• Roll on-roll off barge loading ability.

• Brand new 3000m3 workshop and office complex – office space available for clients wishing to use the facility.

• Steel and aluminium fabrication bays, 2 x 6T overhead cranes.

• Full fitters / maintenance facilities.

• Fully compliant on-site blast and paint facility.

• On site cranage from 12T – 150T.

Services able to be delivered out of the facility include project laydown, barge and vessel fitout and loading, repair and maintenance options for fabricators, fitters, blast and paint work, electricians and labourers, as well as tug and barge services and Commercial Diving services.

Pacific Marine Group’s activities are throughout Queensland including: Hay Point, Weipa, Willis Island, Great Barrier Reef, Whitsunday Islands, Creal Reef, Gladsonte, Lucinda, Townsville and Magnetic Island.

PMG has a diverse fleet available to conduct a range of services including asset (wharf, navigation aid, mooring points, subsea pipeline, etc) installation, maintenance, repair and removal; and coastal and offshore support, supply and towage operations.

PACIFIC MARINE GROUP

16 MIAL MAX

Rio Tinto Marine provides ocean freight and maritime services to the Rio Tinto Group. As a critical supply chain partner to the Group’s mining businesses, Marine adds value by providing global shipping services and acting as the central repository of maritime expertise for the Group.

In Northern Australia, the Weipa port can service post-Panamax vessels up to a capacity of 88,000 tonne cargoes.

Some product is shipped to international customers but the majority of Weipa bauxite is supplied to the Queensland Alumina Limited and Rio Tinto Aluminium Yarwun refineries, both located in Gladstone, Queensland. These refineries produce alumina as feedstock for Australian aluminium smelting operations and for sale on the international market.

RIO TINTO MARINE

17JULY 2017

Sea Swift is a privately owned company based in Cairns that has provided shipping services throughout Northern Australia for 30 Years.

The main products and services that Sea Swift supplies are:

(a) general cargo services: Sea Swift operates both scheduled and charter services providing seaborne delivery of freight including food, fuel and other goods to customers such as businesses, government agencies, mining projects and individuals on remote islands and in coastal communities. It is important to note that during the North Australian wet season that Sea Swift is the only link to many of these communities for months on end due to impassable roads;

(b) fishery support: Sea Swift provides mothershipping services to fishing fleets, including the delivery of fuel, fresh water, packaging, consumables and exchange crew to fishing vessels and the transportation of catch back to port;

(c) charter and project logistics: Sea Swift provides logistics services to resources and infrastructure customers who require large, sporadic or one-off deliveries, including the movement of construction and infrastructure materials and machinery for major projects;

(d) passenger cruise: Sea Swift also provides limited services transporting passengers and their vehicles to various locations across FNQ and the Torres Strait Islands;

(e) fuel retail: Sea Swift also retails a small volume of fuel to regional communities at depots located in FNQ and the Torres Strait Islands, as well as provides commercial sales to operators such as Marine Pilots, Small Navy vessels, Water Police, Customs, and Boarder Force vessels.

SEASWIFT PTY LTD

18 MIAL MAX

Smit Lamnalco is the leading provider of safe and efficient towage and associated marine services to the oil and gas and harbour towage industries.

With more than 225 vessels and close to 3000 staff worldwide, Smit Lamnalco is dedicated to providing marine support services tailored to the operational needs of global customers in local markets. Active in almost 30 countries, Smit Lamnalco specialises in bringing international standards on safety, logistics, mooring and towage to onshore and offshore operations in challenging environments.

In Northern Australia, Smit Lamnalco is the towage provider for Rio Tinto in Weipa and holds the exclusive towage license for the Port of Townsville, Mackay and Gladstone.

SMIT LAMNALCO

19JULY 2017

Since 1833, Svitzer has provided safety and support at sea. With 4,000 employees and a fleet of 430 vessels, Svitzer is the global and Australian leader in towage and emergency response, operating in over 100 ports around the world. Svitzer’s three core business areas are harbour towage, terminal towage, and salvage and emergency response.

Svitzer Australia was incorporated in Australia in 1939 and is part of the Maersk Group of Denmark.

Svitzer provides towage services both in terminals and ship-to-ship operations on a number of major LNG project in very different corners of the world. We employ our vast LNG towage experience to deliver tugs tailored to the specific requirements.

A great example of this is the Gorgon and Wheatstone LNG projects in Western Australia. These operations require eight specially designed tugs (for example, to meet strict environmental restrictions covering the area in which they operate at Barrow Island). Svitzer’s ground breaking ECOtug®, reduces fuel consumption by up to 10% compared to traditional tugs and NOX emission by up to 80%.

SVITZER

20 MIAL MAX

Swire Pacific Offshore welcomed the arrival of three Platform Supply Vessels (PSV) into Australia in July. Pacific Grackle and Pacific Greylag, sister vessels from SPO’s G Class range, are highly fuel efficient PSVs with DWT capacities of over 4000t and 810m2 of deck space. Pacific Hornbill is the third PSV, which is diesel electric and boasts a large deck space of 1,000m2.

SWIRE PACIFIC OFFSHORE PTY LTD

21JULY 2017

Teekay provides comprehensive marine services to a broad range of customers in Australia. From shipping logistics for oil exporters to vessel management for resource companies and government, our marine services reflect Teekay’s reputation for producing significant advantages for our customers.

Teekay Australia has formed a joint venture with the Dutch towage company, called KT Maritime (KTM) which will be supplying specialised tugs known as Infield Support Vessels (ISVs) for Prelude FLNG. This project involves the design, building and operation of three new vessels to support Shell’s multi billion dollar investment in floating LNG extraction. Shell has selected the innovative RotorTug design, ART 100-42 which was developed by part of the Kotug group.

TEEKAY AUSTRALIA

22 MIAL MAX

Vessel capability

Toll have a fleet of more than 10 vessels – including landing craft tank (LCT) vessels, barges, tugs, multipurpose tween deckers and platform supply vessels (PSV) – customised and engineered to support our customers’ marine logistics requirements. The list below indicates the areas in which we operate:

Dampier

As a key provider of logistics and supply base services for oil and gas exploration and production operations in the North West Shelf region, Toll have had a strong presence in Dampier since 1990. Our main supply base operations are strategically run out of King Bay, with complementary satellite yards in Karratha LIA and Gap Ridge.

Karratha

Toll’s Karratha supply base facility is among the largest and latest multi-user tubular management and preparation yard in the region. Offering approximately 50,000m2 of dedicated space for tubular management, a separate pipe lay down yard and bonded storage for dangerous goods, we operate this fully integrated logistics facility alongside a secondary 80,000m2 supply base located in the Gap Ridge industrial

estate, approximately half way between the township of Karratha and Toll’s Dampier supply base on the Burrup Peninsula.

Broome

Since 2006, we have operated a strategically located supply base in Broome – providing our customers with support for exploration, future production operations and construction activity in the Browse Basin and surrounding areas.

Darwin

Toll have had an established presence in Darwin since 2003, with multiple purpose-built multi-user sites and a dedicated pipe yard for tubular management.

Gladstone

Toll’s supply base operations in Gladstone is close to port infrastructure and supports the APLNG stakeholder ConocoPhillips, consolidating all inventory for gas train consumables and shut down operations.

TOLL ENERGY & MARINE LOGISTICS

23JULY 2017

Woodside is Australia’s largest producer of LNG with more than 25 years’ experience as an LNG producer and operator. In addition to LNG, Woodside markets crude oil, condensate, LPG and pipeline natural gas and has been supplying pipeline gas to Western Australian utilities and buyer since 1984. Woodside’s shipping capabilities have long been central to their role as a leading supplier of energy to the Asia Pacific region. Woodside’s expertise includes offtake management, price reviews and integrated LNG shipping fleet operation.

WOODSIDE

24 MIAL MAX

Established in 1993, Waterway Constructions (WWC) has achieved consistent growth to become one of the largest specialist maritime contractors in Australia. With a workforce of over 150 personnel, a fleet of over 15 barges and yard space in Melbourne, Sydney and Brisbane- WWC has the capability and capacity to undertake maritime construction, maintenance and refurbishment throughout Australia. Across Northern Australia, Waterway has completed maritime construction projects as far north as Thursday Island as well as work on Curtis Island, Gladstone and Bundaberg. Currently, WWC is completing a wharf extension project on Norfolk Island in the Pacific Ocean.

A member of the Keller Group, WWC has the financial support as well as access to the resources and expertise of the largest independently owned foundation specialist company in the world. The Keller Group is a UK listed construction company that has permanent operations in more than 40 countries, around 10,000 employees and a combined turnover of around £1.8 billion.

When an owner looks for complex design, engineering or construction on, in and around the water they turn to a specialist contractor with a unique track-record in quality, safety, budget management and projects without incident. WWC was established by eight shareholders (4 are still working with Waterway) to tackle the specific challenges of maritime construction - where project access by land is not feasible. WWC establishes a specialised workforce (WWC has trained 3-4 apprentices each year since 1999) and a strong engineering team supported by specialist maritime equipment and over the years have earned a reputation for successful delivery of high risk, complex and technically challenging maritime projects.

WATERWAY CONSTRUCTIONS

25JULY 2017

A vision of maritime in Northern AustraliaThe White Paper on Developing Northern Australia was released in 2015, the need for which is “driven by the unique position of Northern Australia in the developed world. It sits at the intersection of the two great regions of global economic and population growth — Asia and the Tropics”.

In support of the White Paper, in January 2016 the then Deputy Prime Minister, Warren Truss, established “a business stakeholder group to assist in the preparation of a Northern Australia Transport Study – a plan to improve aviation and maritime connectivity in the region.”

The White Paper references to commercial maritime or shipping are limited to:

• a section devoted to deregulating coastal shipping (a policy change which has already failed, having been rejected by the Parliament in late 2016 and is now well out of date); and

• a comment regarding their aspiration to build a rail link from the NT to QLD through Mount Isa to cut shipping times and costs.

Combined with the establishment of a dedicated ‘transport’ group, it became increasingly obvious that those involved in the development and delivery of the White Paper were not aware of the scope of maritime activity that occurs in Northern Australia, the benefit it delivers, and the opportunity to grow maritime activity in Northern Australia.

To raise awareness and promote beneficial outcomes for maritime operations MIAL submitted a briefing paper outlining the breadth of maritime activity in Northern Australia; the connection of maritime to key ‘industry pillars’ identified in the White Paper; and the ideas to grow and develop maritime services in the region.

In December 2016 MIAL was invited to privately brief the Joint Standing Committee on Northern Australia on maritime issues in Northern Australia, including infrastructure, logistics and opportunities for maritime-based tourism.

MIAL promotes the position that supporting a stronger maritime sector in Northern Australia, which is largely a service industry, adds to the capability and increases the efficiency of the transport task in the region and supports a very broad cross section of the Northern Australian economy and by extension the Australian economy in general, as well as strengthening maritime ties with our near neighbours.

Northern Australia covers over 10,000 kilometres of coastline (Department of Agriculture, 2014) and represents over half all Australian sea exports according to Ports Australia. The White Paper defines Northern Australia as “all of Northern Territory and those parts of Western Australia and Queensland above the Tropic of Capricorn”.

What is the White Paper framework? In the two years since its launch, the framework for delivering the White Paper has been established, as shown below:

The Office of Northern Australia (ONA) – which was in Canberra but is now based out of Darwin, has the task of coordinating the implementation of the White Paper. Partner Agencies of ONA have been acknowledged as:

• Major Projects Approval Agency • Northern Australia Infrastructure Facility (NAIF) • Government of Western Australia • Northern Territory Government • QLD Government

Complementing (or complicating) the delivery of the White Paper is that the various governments already have infrastructure projects in place. The Northern Territory, for example, currently has 16 projects running parallel to the White Paper.

Northern Australian maritime operators provide more than “transport”MIAL has been championing Northern Australia as an opportunity for maritime growth and the White Paper enabled MIAL to once again raise the profile of all maritime activities throughout Northern Australia.

There is no doubt that Northern Australia is dependent on a robust and agile maritime industry. Seaborne transport links are vitally important and should remain a focus in any transport plan developed for Northern Australia. Beyond that however, maritime operations are essential for the construction, maintenance and ongoing operation of critical Northern Australia assets such as offshore oil and gas installations, subsea pipelines and cables, wharves, jetties and navigation aids, and offshore tourism anchorage points/destinations. In addition, fishing fleet support and emergency response and

It has become increasingly obvious that those involved in the “Developing Northern Australia White Paper” were not aware of

the scope of maritime activity that occurs in Northern Australia, the benefit it delivers, and the opportunity to grow maritime

activity in the region. MIAL is promoting the position that supporting a stronger maritime sector in Northern Australia is essential.

Our FutureOur North,

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salvage are all services that fall outside of a ‘transport’ role. These activities must not be overlooked when considering policy changes, infrastructure spend and other growth and development opportunities.

Future work in Northern AustraliaThe 10,000 kilometres of coastline surrounding Northern Australia is a resource. Many maritime businesses based in Northern Australia also operate in the Asia-Pacific region and already contribute to strong economic connection with the booming Indo-Pacific region as well as possessing strong people to people links with neighbouring countries.

MIAL are working to improve the operations of Northern Australian maritime businesses and remove regulatory burden. Specifically the areas where MIAL are pushing for change are:

CUSTOMSSupport vessels servicing Australian islandsThe importation requirements of Customs with regard to vessels servicing Australian islands need to be amended in order that vessels and operations are supported not hindered from these activities.

FISCAL POLICYChange the criterion in training crew of particular ranks/rolesThe Income Tax Assessment Act (ITAA) penalises small vessel operators such as those operating in Northern Australia because of the criterion in training crew of particular rank/roles which is more applicable to larger vessels. A minor amendment that would ensure a broader suite of activities would meet the policy objectives of growing maritime capability via increased training opportunities.

Remove the requirement for a tonnage certificate to access the ITAA benefitsThe ITAA also requires a ship to hold an Australian tonnage certificate. The relevant Australian authority that deals with this (AMSA) does not necessarily recognise tonnage certificates issues overseas and Australian operators are forced to resubmit to a tonnage declaration process which is time consuming a costly to be eligible.

WORKFORCEIncentivise workers to live and work in Northern AustraliaAlthough this is not unique to maritime, high travel and rental costs are barriers to a skilled workforce and there needs to be incentives to attract employees to work and live in Northern Australia

Abolish SEACAREMaritime employers are burdened with an expensive and jurisdictionally unclear workers compensation and occupational health and safety regime. The issues with the regime are particularly acute in Northern Australia due to the high prevalence of work boat/utility boat operations in the region.

Assistance to obtain maritime qualificationsAllowing access to VET and/or HELP assistance during periods of seatime (on the job training) required to become qualified would assist lowering the cost to employers for each individual trained and therefore allow more training to be undertaken.

INFRASTRUCTUREFund the maintenance of island delivery pointsMaintenance of berthing dolphins, barge ramps and access channels will improve the movement of freight

Plan for forecasted larger ships to service the Australian marketThe larger ports (ie Cairns, Broome and Darwin) will need to keep up with development in ship size if they are to remain on the cruising itinerary.

Build a network of appropriate wharves to allow ro-ro vessels to service areas of Northern AustraliaThis will remove trucks from the road and has the potential to fundamentally change the nature of our surface transport task

ECONOMIC CONSTRAINTSServices to many parts of Northern Australia are constrained by the existence of prolific coral reefs which make navigation difficult for larger vessels, thus resulting in high commercial overheads due to the necessary use of smaller ships. This reality is unavoidable however the following measures would assist the efficiency and cost effectiveness of these essential services being provided.

Incentivise enterprises in remote and coastal communitiesGrowing commercial enterprise will allow cargo to flow to and from remote and coastal communities, thus making the freight task more efficient with flow on economic benefits for the region

Introduce a Northern Australian Freight Equalisation SchemeSimilar to the Tasmanian scheme that assist remote and coastal communities who rely on maritime services

Reduce Port charges to facilitate cost effective trade

There are levy’s being applied in Port Kennedy that are 5 times higher than those in Cairns this has a negative impact on the cost of goods.

COASTAL TRADING POLICYDo not use port pairs as a determinant for contestability of a ‘voyage’ Some of the services provided in Northern Australia are only possible because of the series of connected port calls undertaken by that vessel. The Coastal Trading Act considers each port to port movement as an individual voyage which

Buccaneer Archipelago, The Kimberley, Western Australia.

Image by Robert Hiette

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potentially allows a foreign ship utilising a temporary licence (TL) to service only one of those port to port connections - which would have the effect of rendering the rest of the sailing uneconomic and leave remote and coastal communities without service.

Port pairs should not be used as the definition of a ‘voyage’ under a TL application where that voyage forms part of a series of voyages and the entire service is deemed essential to regional and remote communities such as in Northern Australia.

Opportunities for maritime? The ONA has confirmed that one of its objectives is “enhanced air, land and sea transport links to, from and within the north and that actions will be taken in partnership with those who live,

work and do business in northern Australia”. The infrastructure and funding opportunities are available to maritime, but as an industry we need to explicitly define what is needed to make maritime thrive in Northern Australia.

There are also opportunities for individual organisations, for example, the $13.6m available under the Tourism Entrepreneurs Programme is available now to anyone who operates tourism businesses in Northern Australia. The Programme connects businesses to experienced Advisers and Facilitators, sourced from the private sector, who work directly with businesses to help them grow.

There is also possibility for research funding under the Cooperative Research Centre (CRC) which has a $75million allocation. The first three years are already committed but the CRC is open to discussion on research projects and funding from 2020 onwards.

The White Paper is fostering business growth for Northern Australia and there is opportunity for the maritime industry to benefit. It’s all about identifying what is needed.

You can view the full report of Our North, Our Future: White Paper on Developing Northern Australia at northernaustralia.gov.au

Progressing Northern AustraliaIt is hoped that future work on developing Northern Australia will ensure that opportunities for maritime businesses are identified and progressed for the benefit of the region and the nation. MIAL encourages Members to be involved in future work that MIAL is doing in the region and be part of the push to raise awareness of the current maritime activities and also future opportunities.

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Ocean Cruise Lines SectorNorthern Australia has emerged as a key cruise market with Queensland holding the distinction of having more cruise destinations than any other Australian state. Cruise Lines International Association Australasia’s (CLIA) latest source market report showed that a record 304,736 Queenslanders cruised in 2016 – an increase of 7.8 per cent compared to the previous year. In other developments in recent years, P&O Cruises made Cairns its first regional port to home port a ship with Pacific Eden based there for seasonal cruising including voyages to Papua New Guinea and the Solomon Islands.

In recent years more destinations in Queensland have been opened up including Gladstone, Mooloolaba and Fraser Island. Northern Australia is also a focal point for visits by local ships and others in Australian waters on a seasonal basis or international ships on world voyages. In addition to Queensland destinations, cruise ships regularly visit Darwin and the Kimberley region of north west Western Australia and other WA ports.

Regional Tourism OperatorsThe Northern Australia regional cruise operators have developed a boutique cruise/tourist experience and although the fleets are often small (one to two vessels), it is their specific local knowledge that brings tourists to their destinations.

An example of the diversity of the regional cruise experience is Sea Swift’s MV Trinity Bay - the only privately owned cargo ship in Australia to also carry passengers. For a truly unique and authentic experience guests cruise on a working ship that travels from Cairns to Cape York and the Torres Strait visiting remote communities. Fred White, Managing Director of Sea Swift says “We are all privileged to live and work in what is one of the most unique and beautiful parts of the world, and Sea Swift is privileged to play an instrumental role in the development and promotion of the region”.

Cruising in Australia is flourishing and destinations in Northern Australia

are contributing to this. According to Carnival Australia, last year, nearly

1.3 million Australians took an ocean cruise holiday, 21 per cent more than

in 2015 capping a decade of double digit annual growth - and these figures

do not include the smaller regional operators who are also reporting growth.

Sailaway catamaran in the Great Barrier Reef.

Pacific Eden in port at Cairns.

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SeaLink Travel Group considers itself a tourism business, with the Captain Cook brand and cruises operating out of Queensland and the Northern Territory. Recently SeaLink launched a new North Queensland adventure series targeting locals in Townsville. “We have been overwhelmed by the response our North Queensland Adventures has generated within the local community with many of our tour dates selling out as soon as advertised” SeaLink general manager Chris Briggs said. “Our tours have been hugely popular with locals as they offer opportunities to visit places that many have talked about going to but have never had the chance to and, at an affordable price. Our guest feedback from those who have previously joined us quote memorable experiences and a great day out”. SeaLink also operate out of Northern Territory with tours to Crab Craw Island and Tiwi Islands.

Further reinforcing the diversity on offer by regional cruise operators is True North Adventure Cruises who have offered luxury cruises to North Western Australia for over 30 years. Its vessel True North, a 50 metre mono hull ship accommodates 36 guests and has a crew of 22 young Australians. Company director Mark Stothard, says “The TRUE NORTH does what bigger ships cannot do – it gets up close to the most spectacular

destinations. And with six adventure vessels and a helicopter on board, guests have much greater opportunity to do “what they want, when they want” in largely pristine environments.

“Basically via experience we know what we need to provide - our guests are always primary in consideration. Local knowledge is obviously essential especially in shallow environs where often the ship’s helicopter can bring advantage.

“Our annual sailing schedule is based on seasonal influence. The overriding objective is to ensure that the TRUE NORTH is only in the right place at the right time. This combination of customer focus and local knowledge ensures that a unique experience is delivered” says Stothard.

On a much smaller scale is Sailaway, a cruising yacht operating out of Port Douglas that targets the growing eco-friendly customer. Owner, Steve Edmondson says that “Eco Tourism Australia credentials really do influence purchase behaviour. We’re proud to be one of the first operators to install waste water treatment onboard, and have switched to recycled Bio Diesel and low emission outboards. Sailaway offers daily cruises and private charters from Port Douglas.

“We have plans to continue with carbon offsetting and will do this through the revegetation of an ex-cane paddock and neighbouring World Heritage Rainforest, which we recently purchased. I hope that the continual development of carbon trading and offset schemes will create incentives for more businesses to think and act green” says Edmondson.

The diversity in the tourism sector is attracting new customers and building new markets. The smaller, regional cruising operators are exploring destinations and reporting growth. This combined, with the breadth of the destinations offered by ocean cruise operators such as Carnival Australia means that the choice offered to domestic and international tourists has never been better.

An excerpt from Fred White’s speech (Sea Swift’s CEO) at the 30 Year Celebration in Cairns.

“Sea Swift now have 28 vessels supplying essential services to 52 different destinations, 48 of these on a regular weekly schedule, and 10 of these twice weekly.

We are now operating out of 8 depots from Cairns around to Darwin - virtually a quarter of Australia’s 35,000km coastline, carrying 500 containers of cargo per week, and around 60 million litres of fuel annually to remote communities and vessels.

In fact over our history we have carried 895 million litres of fuel into the region, within the Great Barrier Reef, to keep these communities and vessels moving, all without incident!

We have also carried 269,000 containers of freight, or the equivalent thereof, and contributed over $720 million into our local economy by way of wages and supplier payments.

We now employ 420 people, but have a flow-on effect to an estimated 2,000 others, whilst the value of cargo carried annually is around $1.13bn.

Through the support of mining and fisheries, the area we service is estimated to contribute approximately $2.2bn to Australia’s export income, from a population of 44,000. Almost as much as the $2.7bn exports from the state of Tasmania with a population of over 500,000.

So this region certainly punches well above its weight, and Sea Swift is, by any measure, a significant business, and critical to this.

Whilst these numbers are significant and mean a lot to politicians, economists, bankers, business leaders and others, what really counts for us is the impact our operations make to the standard of living, and employment and development opportunities for youth and others in the region.

That is why we also offer cadetships and school based traineeships, and apprenticeships, and have developed many people through to more senior positions within the company.

The combinations of our involvement, and the support of a whole range of other government and private agencies and individuals over the last 30 years, have led to a significant improvement in the standard of living in the region.

All the communities we now service have running water, base load power, sewerage treatment plants, very good quality public amenities, and better connectivity than many parts of mainland Australia. And Sea Swift have been responsible for carrying most, if not all, of the infrastructure and on-going supplies to have these established and operating.

The recent developments and achievements with the merger of Toll Marine, and the network of depots, vessels and services, this now guarantees the region, sets the organisation up for sustainable future growth, and opportunities for us all.

It also sets the region up to be truly connected, leveraging on the technology connectivity mentioned earlier, and overlaying this with Sea Swifts spread of capability and services from Cairns around to Darwin, really does ensure the whole of Northern Australia is truly connected in every sense”.

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THE DOOR OPENS TO THE “GREEN

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The idea of developing LNG-fuelling infrastructure for the vessels operating on the Australia–China iron ore and coal trade s route has been contemplated by major charterers, ship owners and operators for many years. As LNG production has climbed, especially in Australia, and in recognition of the upcoming IMO restrictions on sulphur emissions, the option of LNG as a single-system solution for emissions compliance has become ever more attractive.

The “Green Corridor” Joint Industry Project (JIP) has been established with project partners BHP, Fortescue, Mitsui O.S.K. Lines (MOL), Rio Tinto, SDARI, U-Ming, Woodside, and DNV GL.

“This JIP has shown that by bringing together partners from across the industry to investigate alternative compliance options that account for market and trade route characteristics,” said Morten Løvstad, DNV GL – Maritime Business Director Bulk Carriers. “By having both charterers and ship owners as active partners in the JIP, we are also optimistic that this new design will materialize into firm orders in the near future.”

The JIP has demonstrated the commercial potential and technical feasibility of LNG-fuelled bulkers in a “green corridor” iron ore and coal trade between Australia and China.

Chinese ship designer SDARI developed the design of the 210,000 dwt Newcastlemax bulk carrier based on their highly energy efficient Green Dolphin design. Dual fuel engines were quickly decided upon by the JIP partners, as this is a mature technology with multiple suppliers offering solutions, and the dual fuel design providing operational redundancy.

Based on fuel consumption analyses an LNG fuel tank size of approximately 6000 m3 was found to be optimal, with bunkering in Australia for the round-trip. Several locations for the LNG fuel tank were considered, and finally the optimal solution was found – with the two LNG fuel tanks placed directly above the engine room and submerged a few metres below the main deck.

“An important part of the JIP was conducting the financial feasibility study for the design,” said Mike Utsler, Woodside Chief Operations Officer. “We looked at a wide range of capital and operational costs, including LNG and low sulfur fuel oil price sensitivities, as well as conducting a high-level bunker supply chain assessment. Based on this we found that, under the most realistic scenario, the payback period for the design was under 10 years, and under the optimistic projection just 6.7 years.”

The new, innovative Newcastlemax design developed in the “Green Corridor” JIP, offers unique solutions for cost-efficient, safe and flexible operations. By gathering key stakeholders representing the wider value chain of iron ore and coal transportation, a more robust, commercially viable and safe LNG-fuelled bulk carrier design has been developed to a stage where it is ready to servce as the outline specification for newbuilding orders already in 2017.

Source: DNV GL Maritime

THE DOOR OPENS TO THE “GREEN

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3D image courtesy of SDARI

3D image courtesy of SDARI

MEMBER NEWS

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We are pleased to welcome the following organisations to MIAL:

Colin Biggers & Paisley

Colin Biggers & Paisley is an Australian legal practice with offices in Brisbane, Melbourne and Sydney.

Our Transport and Logistics team has a proven track record in the Maritime sector with broad experience in:

• M&A deals • Ship/rig sale, purchase and financing• Ship construction• Chartering• Off-shore support and towage• Regulatory compliance• Admiralty, including collisions, salvage

and arrest of ships• Marine pollution• Marine insurance, including cargo,

hull and liability claims• Sea carriage, including cargo claims

and charter party disputes• Trade and commodity disputes• Liability claims

Many of MIAL’s members and associate members are clients of Colin Biggers & Paisley.

With six partners and senior lawyers, the Transport and Logistics team is at the core of our Maritime practice. That group is supported by lawyers from among our 450 staff, with expertise in property, construction, banking and finance, corporate and commercial, dispute resolution, employment and insolvency.

We are also a member of ADVOC, an international connection of leading law firms. Through ADVOC we have access to over 5,500 lawyers in 70 countries, meaning we can assist our clients wherever they go.

Our aim is to provide an experienced team with deep industry knowledge to

deliver tailored, cost competitive, and holistic service to the Maritime sector.

We are delighted to be joining MIAL and look forward to participating in its activities.

The key contact is: Stephen Thompson Ph: +61 2 8281 4500 stephen.thompson@cbp.com.au For further information go to: cbp.com.au

Greencap

Greencap is the largest integrated risk management and compliance company in Australia. The Company Mission is to benefit society through the improved risk management of People, Property and the Environment and our vision is to be “best in class” delivering value through practical solutions.

Greencap assists businesses in managing Risk & Compliance by providing integrated Expert Services, Training & Online Solutions across Property (Asbestos & other Hazardous Materials Management, Occupational Hygiene, Property Risk), Work Health & Safety (HSE Management Systems, Contractor Safety Management, Strategic Services), & Environment (Contaminated Land & Environmental Management).

With over 300 professional, technical and engineering staff based in 10 offices throughout Australia and New Zealand Greencap offers world class delivery of innovative solutions to market leading clients in a wide range of industries, including thousands of private and government clients in the education, property, resources, industrial, manufacturing, retail and services sectors.

The Maritime Services practice group at Greencap is experienced in vessel: supply chain auditing, asbestos - surveys, registers, awareness and remediation training, air monitoring, pre-departure and arrival inspections, Health and Safety and other maritime services (e.g. mould, noise and occupational hygiene assessments).

Fully acquired by Wesfarmers in 2013, Greencap has the capital backing and balance sheet strength to deliver professional, integrated and quick time responses to risk management and compliance.

Greencap is very much looking forward to working in partnership with MIAL in future activities and meeting other members.

The key contact is: Peter Shipley +61 8 9214 6146 peter.shipley@greencap.com.au For further information go to: greencap.com.au

MP Safety Management

MP Safety Management was established in 1997 by Melanie Parker-Doney, who has a Bachelor of Applied Science in Occupational Therapy and a Graduate Diploma in Ergonomics and granted an Associated Fellow with the Personal Injury Management Foundation.

Melanie has a focus to provide excellent customer service. MP Safety Management is about developing partnerships with our employers, insurers and workers to achieve great return to work results through maximising function.

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NEW MEMBERS

We have since grown to an organisation of 13 highly professional Rehabilitation Consultants. All of us each have more than 15 years’ experience in workplace occupational rehabilitation.

Melanie has specialised in the shipping industry since 1997. In partnership with BHP Shipping, MP Safety Management developed the first supernumerary return to work on an Australian Flagged Vessel. Since that time MP Safety Management has had a strong association with the Australian Maritime Industry developing injury management and return to work programs. MP Safety Management won the Best Rehabilitation and Return to Work Award with the Seacare Authority in 2004, 2006, 2008 and received a high commendation for a successful return to work following psychological injury at sea in 2010.

In 2014 MP Safety Management won the Seacare “Best Rehabilitation Provider Contributions to the Industry” Our colleague Jacki Harvey was also honoured at the Comcare/Seacare Awards with “Best Individual Contribution to the Industry in Return to Work”.

MP Safety Management is nationally accredited and all of our Occupational Therapists are committed to ongoing professional development and are registered with the Australian Health Practitioners Regulation Agency (AHPRA)

Contact Tel: 02 99870 455 / 0407 952 731 Email: admin@mpsm.com.au Web: www.mpsm.com.au

Forum for Operational Oceanography(FOO 2017)July 25-27, Fremantle

The goal of FOO is to improve the safety and efficiency of marine industries through better decision making. FOO 2017 is an opportunity for R&D Providers, Government Agencies, Service Providers and Marine Industries to come together and influence future directions.

www.foo.org.au/events/foo-2017/

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FOO provides a mechanism for the national coordination of operational oceanography in Australia. It is a specific opportunity for the maritime sector and those in the industry to influence future directions specifically relating to the implementation of operational oceanography, with a focus on improving the safety and efficiency of marine industries.

Tim Moltmann, FOO Co-chair says “The forum will appeal specifically to the shipping and ports sectors as the goal is improving safety and efficiency in the marine industries. It is really an opportunity for the maritime industry to find out what we are doing and to take advantage of the excellent science and government services we have available”.

Topics being delivered such as Gregory Hibbert’s Port Decision Making show how oceanography can be used to inform users and automated systems alike of immediate threats to safety, while also detecting opportunities to optimise cargo throughput efficiency. There is also a presentation by Greg Williams from RPS MetOcean discussing the sophisticated swell prediction system that is being used on Australia’s North West Shelf.

As Mr Moltmann says “FOO is a practical forum for the industry that will assist in current and future decision making. Australia has a solid foundation of world class research in operational oceanography and the maritime industry can benefit commercially from this”.

To register for FOO 2017 go to www.foo.org.au/events/foo-2017/. Fees are a very reasonable $250 for the 3 days.

34 MIAL MAX

Implementation of the changes commenced from 19 April 2017 with the removal of 216 occupations from the list of eligible occupations; the placement of caveats on 59 of the remaining occupations to limit their use, and restricting 24 occupations to regional areas.

Who is affected and how?The changes will mainly affect:

• prospective 457 visa applicants and prospective permanent employer sponsored visa applicants and businesses.

• 457 visa applicants and nominating businesses who applied before 18 April 2017 for occupations which have been removed and whose application has not yet been decided, will not be approved and may apply for a refund.

• 457 visas granted be before March 2018 will valid for either up to two years or four years dependant on the applicable occupations list (i.e STSOL or MLTSSL, respectively).

What next?There has been some backlash with respect to the changes to the skilled occupations list as highly skilled occupations such as Chief Executive Officers are now placed on the STSOL which is only valid for a two year period with only one renewal of another two years, and no pathway to permanent residency. Affected businesses and Universities have spoken out on the implications of these changes and there are plans to lobby the Government, however, it is yet to be seen whether any lobbying will successfully change the current occupations list.

One thing is certain though, with the introduction of the training levy (payable per visa applicant per year) and increase in application fees from 1 July 2017, the costs to employ foreign workers will be substantial. There is then a question of how effective the new reforms will be in meeting Australia’s skill needs if increased costs could act as a deterrent to employing foreign workers.

Authors:Mae Vue, Associate, Migration Agent Registration Number 1171015, HFW

Gavin Vallely, Partner, HFW

The 457 being removed, reinvented or reborn

:VISAOn 18 April 2017, the Turnbull government announced that the 457 visa will be removed and replaced by a new scheme for skilled migrants. The changes are intended to “better meet Australia’s skills needs” and provide safeguards that prioritise Australian workers. The changes envisage a phasing out of the 457 visa by March 2018 and its replacement with the Temporary Skills Shortage (TSS) visa.

MIAL’s view on how this impacts on maritimEExperience has shown us that there’s no one-size fits all approach to skilled migration in Australia. This is particularly relevant when it comes to regional areas like Northern Australia, where recruitment, training, and retention are entirely different propositions than they are elsewhere in the country.

The Government’s skilled migration program needs to support employers in this area, not make things harder for them, and MIAL is making submissions to Government to this end. Regional Australia (which all of Northern Australia is classified as) has access to additional migration channels such as the Regional Sponsored Migration Scheme visa (subclass 187) and Designated Area Migration Agreements (DAMA), although all of these have costs associated with them.

MIAL has outlined the following maritime industry roles that are impacted:

• From 18 April 2017, Ship’s Surveyor and Marine Transport Professionals NEC are no longer on any skilled migration list.

• From 18 April 2017, Ship’s Engineer, Ship’s Master and Ship’s Officer are on the Medium and Long-Term Strategic Skills List (MLTSSL) because workers in those roles can apply for the following visas:

Skilled – Independent (subclass 189)

Temporary Graduate (subclass 485)

Skilled-Regional (Provisional) (subclass 489) – Family nominated

• Maritime specialists will still be able to receive a visa in some circumstances. For example, vessels and marine equipment that have certification requirements that necessitate the use of overseas specialists will still be able to use the Temporary Work (Short Stay Specialist) visa (subclass 400).

• Additionally, the Maritime Crew Visa (subclass 998) continues to operate, although the MUA has renewed opposition to this.

• The actual impact of the changes will depend on each companies reliance on the 457 visa for their operations in the future. It may be that a visa is still accessible but under a more general category, or that a different visa type is now more appropriate.

Isabelle Guaran, Industry Employee Relations Manager, MIAL

35JULY 2017

© Gerry McCusker, The Drill Crisis Simulations

Former New York City Mayor Rudy Giuliani is thought to have coined the phrase “Hope is not a strategy”. And Rudy knows a thing or two about handling major disasters.

Recent PWC research showed 65% of CEO’s surveyed experienced one crisis in the past three years. Over 50% saw two or more during that time. Crises happen, but most businesses think it won’t happen to them.

Maritime owners use dry docks to ensure their fleet won’t sink, but are they as diligent with crisis preparations?

I tell clients if they have staff members who have smartphones connected to the internet, a PR disaster is only a click of the thumb away.

An out-dated crisis communication model

While online and social media have been around a decade-plus, many businesses use a historic media and crisis communication model, rather than a contemporarily configured one.

In today’s media, the number of experts and pundits - replete with their own wisdom - has multiplied. In crisis, they publish incessantly, inaccurately, and more frequently than most businesses.

Erroneous content can fuel Search Engines first

Online channels pick up much of this - frequently erroneous - content. So, the ‘wrong’ content quickly infiltrates search results. As over 90% of online searchers click on the highest-ranking webpages and sites first, the narrative is biased and ‘wrong’. And a misconstrued story circulates and gets traction.

We observe the company side of the story becoming lost once initial ‘storylines’ have been established.

Focus on your SEO, not the CEO

Commonly many Communicators work with the CEO when crisis hits. Yet your CEO is easily outgunned by speed, by speculation and by the tsunami of SEO content. Consequently, the effectiveness and impact of the CEO in a crisis, is fast overtaken by influence of search engines (and SEO) in ‘framing the crisis narrative’.

After all, when a crisis breaks many people trust search engines first to help them divine which channel they’ll follow for news on the incident information.

A crisis simulation helps pressure test your business

Despite the plentiful opportunities to publish crisis updates straight to stakeholders (and search engines), only a few businesses have restructured their message distribution strategies to get into the news business.

Even fewer have tried a trans-media crisis simulator, which replicates the multi media pressures – and the solutions - that the business will encounter when a crisis erupts. And if you’ve practiced how you would respond, you can perfect how you will respond when the stuff hits the fan.

Given the changes in our media environment, doing a trans-media simulation is an absolute mandatory in determining how the story gets reported, rather than distorted.

The big question is: “Do you really know the drill of modern crisis management?”

If not, email me and I’ll put your team through its paces.

gerry@engageorm.com

BIOGRAPHYGerry McCusker is an issues management specialist and the author of the ‘PR Disasters’ (Kogan Page 2005) book and blog. Having consulted to the Agri, Energy, Food, Government, Healthcare and Oil & Gas sectors, Gerry understands the modern dynamics and pressures relating to corporate, governmental and

A crisis simulation is like ‘dry dock’ tests for seaworthiness

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INDUSTRY NEWS

WIND FARM OPERATOR SETS UP NEW SUPPORT PROGRAMME FOR LOCAL FISHERMENMIAL member, Life Cell Marine Safety has been included in a new initiative aim-ing to sup-port local fishermen operating from coastal locations between Hartle-pool and Saltburn by the Sea, who have traditionally used the fishing grounds in and around the windfarm.

“The new equipment being provided could make a real difference to the safety of small fishing boat operators and their crews who find themselves in difficulty and we would encour-age all local fisher-men to take up this generous offer from EDF Energy Renewables.”

MMA win award for dual-pur-pose PSVMMA is proud to have been recognised in ConocoPhillips’ 2016 Supplier Rec-ognition Awards. In December 2015, MMA was awarded a five year Platform Supply Vessel contract by ConocoPhil-lips. The MMA Inscription, a 87m LOA platform support vessel, was tasked to provide both platform supply and static tow services in support of ConocoPhil-lips’ Bayu-Undan facilities located in the Timor Sea – a task that required a signif-icant modification project to the vessel. In awarding MMA with a ‘Doing Business Better’ award, ConocoPhillips acknowl-edged the collaborative effort MMA led in developing a dual-purpose PSV for this project.

Farstad Shipping Offshore Simulation Centre and the Australian Medical Association (WA) join forces to promote healthy Australian workforcesThe Australian Medical Association (AMAwa) together with Farstad Simula-tion Offshore Centre (FSOSC) have joined forces to develop specific shipping and Oil and Gas training for Mental Health.

A recent study of organisations has found that in the FIFO sector, 1 in 3 peo-ple will deal with a Mental Health prob-lem (Blueminds Report by Rural & Re-mote Mental Health, Black Dog Insititute & Beyond Blue).

Over the last 3 years Master Jason Tuli-pan, has been involved in several cases, helping many marine crew with mental health issues. Some of these issues have involved very sad and disclosed situations.

AMAwa offer a 1 hour online training that covers the basics of mental health awareness as well as a 2 day intensive mental health safety officers course spe-cifically for Masters and Mangers. There is also a 1 day course that is suited for other crew members.

The 1 hour online courses with certif-icate is $60

The 2 day intensive MHSO is $900

The 1 day $500

Group discounts can be discussed.

For further information please con-tact FSOSC on 08 9494 5600 or info@farstadsimulation.com

I work betterknowing I can talk about

work-life balance.

For more information about the program contact Farstad Shipping Offshore Simulation Centre

Tel: 08 9494 5600 E: info@farstadsimulation.comwww.farstadsimulation.com

Farstad Shipping Offshore Simulation Centre in conjunction with the AMA (WA) are working together to build mentally healthy workplaces in the Australian oil and gas sector.

I work betterwhen I’m supported to

manage stress.

I work betterwithout stigma in the

workplace.

Work betterUnsure how to implement best practice mental health

standards in the workplace?Talk to your Farstad Offshore Simulation consultant to learn more about the benefits

of participating in the AMA (WA)’s Workplace Accreditation Program.

Referenceswww.headsup.org.au:8080/docs/defaultsource/resources/beyondblue_workplaceroi_finalreport_may-2014.pdf?sfvrsn=2.

Job Stress Reduction & Workplace Mental Health Promotion: Developing Best Practice A/Prof Tony LaMontagne McCaughey Centre Melbourne School of Population Health University of Melbourne.

National Standards for Quality in Health Care, Australian Commission on Safety and Quality in Healthcare, March 2014.

National Standards for Mental Health, Commonwealth of Australia 2010.

Education and Health Standing Committee, The impact of FIFO work practices on mental health Final Report, L Legislative Assembly Parliament of Western Australia June 2015.

MENTAL HEALTH ACCREDITATION PROGRAM

WORKPLACE

An initiative of The Australian Medical Association (WA)

to promote healthy Australian workplaces

Brought to the Australian oil and gas sector through

FARSTAD SHIPPING OFFSHORE SIMULATION CENTRE

WESTERN AUSTRALIA

WESTERN AUSTRALIA

Let our advance worrying become advance thinking

and planning.Winston Churchill

For more information about the program contact Farstad Shipping Offshore

Simulation Centre

Tel: 08 9494 5600E: info@farstadsimulation.com

The Sea Swift Cadet ProgramThe Sea Swift Cadet program com-menced in March 2012, the original con-cept was to provide a marine career path for high school students who had elected to take the Marine Tech component in their last two years of high school.

The original intake was six cadets but as a result of the excellent response to the program Sea Swift executives decided to enrol another six cadets for a midyear start and open the program to include mature age candidates, by early 2014 we had 24 cadets in training.

To date the majority of cadets have achieved Master < 35 metre Near Coast-al or Marine Engine Driver 1 qualifications with a mix of 40% of the cadets being fe-male, one of our female cadets, Courtney Hanson was the winner of the Lloyds List Patrick New Generation Award in 2015.

Bob O’Halloran, Fleet Master at Sea Swift says “the cadet initiative has been one of the highlights of his career and it is very rewarding to be involved”.

There was no intake of new cadets in 2016 due to the period where Sea Swift’s focus was directed to the merger of Sea Swift and Toll Marine Coastal assets to Sea Swift.

Northern Australia NewsDarwin Ship Lift The Darwin ship lift and common user fa-cility will be designed to meet the needs of the general maritime sector and the cur-rent and long-term needs of the Depart-ment of Defence and the Australian Bor-der Force, while supporting local jobs and economic growth in the Territory.

The Northern Territory (NT) Government announced that Pearl Marine Engineer-ing had been selected as the preferred proponent to enter a negotiation phase for the Darwin Ship Lift and Marine Indus-tries (SLAMI) Project.

The SLAMI Project will provide a ship lift and common user facility which will cater for wet and dry dock ship maintenance and will support Darwin’s position as a growing logistics and marine services hub.

Source: NT Government

37JULY 2017

Port of Townsville channel widening projectPort of Townsville Limited (POTL) has welcomed the announcement on the 6th of June by Premier Annastacia Pa-laszczuk that the Government’s State Budget will allocate up to $75 million in funding for the Townsville Channel Ca-pacity Upgrade Project.

Ranee Crosby POTL’s CEO says “Being able to accommodate larger ships will have significant and far reaching benefits for Northern Australia; larger ships are more efficient, which means lower oper-ating costs per unit, particularly for con-tainer and car ships.

“By widening the channel North Queens-land will be competitive for exporters and provide lower freight costs for im-porters.”

“Townsville will also be able to attract larg-er cruise ships, providing a much needed boost to the local tourism industry.”

POTL Chair Renita Garard, Mayor of Townsville Jenny Hill, POTL CEO Ranee Crosby

Townsville Port is also a strategic port for Northern Australia’s Defence capability, and is enabling the city to become a gen-uine player in the booming cruise industry iin North Queensland.

Darwin Marine Industrial ParkThe Northern Territory Government’s Land Development Corporation is devel-oping a Marine Industry Park in Darwin. The East Arm Logistics Precinct com-prises Darwin’s East Arm Wharf, the ter-minus of the AustralAsia Railway, Darwin Business Park, the Marine Supply Base and a Common User Area. The Marine Industrial Park will focus on:

• marine service, repairs and mainte-nance

• marine logistics• fabrication and engineering• industrial support services

GBRMPA

Whitsunday’s Plan of ManagementPublic comment is sought on proposed amendments to the Whitsundays Plan of Management, which outlines the activities that can occur in the Whitsundays in more detail than the Reef-wide zoning plan.

Cruise ship operations in the Great Barrier Reef.The Great Barrier Reef Marine Park Au-thority’s draft policy brings together all current management arrangements for cruise ships operating across the Reef and promotes ecologically- sustainable activities.

Key amendments include:

• Adopting a joint management approach with Queensland Parks and Wildlife Service that applies to both the Great Barrier Reef Marine Park and the Great Barrier Reef Coast Marine Park

• Strengthening and encouraging best practice including stewardship oppor-tunities with Traditional Owners.Clarify-ing the application of the Environmental Management Charge (EMC) to cruise ship operations conducting extended tours Providing policy statements for existing management arrangements in legislation, plans of management and permit practice, and proposing some improvements which would involve fu-ture legislative amendments such as:

o Proposing the definition of a ‘cruise ship’ be ‘70 metres or over’ for per-mits, plans of management and leg-islation Extending the plans of man-agement requirement for bookings to designated anchorage to anchorages

outside of the planning areas (cur-rently only permit practice)

o Including domestic and international obligations for waste management and ship activities in the Great Barri-er Reef.

Weather information for northern Australia watersFor vessels traversing northern Austral-ia, the Bureau provides Coastal Waters forecasts for waters off northern West-ern Australia and Northern Territory on the SafetyNet schedule. Ship masters may use these forecasts to track trop-ical weather-related hazards such as monsoon squalls, heavy rain, thunder-storms, and tropical cyclone systems. Additionally, ship masters may also plan their voyage using the Bureau’s MetEye forecast maps which provide detailed wind, wave and weather across north-ern Australia for the next seven days. Visit www.bom.gov.au/australia/meteye.

Image: MetEye forecast map showing wind speed and direction

MarineLite – light webpagesThe Bureau of Meteorology also recog-nised that sometimes weather-related decisions need to be made in between the scheduled SafetyNet broadcasts. The Bureau now provides a ‘light’ set of webpages for its marine text forecasts called MarineLite. The MarineLite web-pages are all 4 kilobytes in size—a frac-tion of the size of a normal webpage—therefore providing ship masters with a cost effective option to view the latest forecasts and wind warnings. Visit www.bom.gov.au/marine/lite.

For more information about the Bureau’s marine weather services, visit www.bom.gov.au/marine

INDUSTRY NEWS

38 MIAL MAX

Asbestos is a generic name given to the fibrous variety of six naturally occurring hydrated silicate minerals. Silicate minerals make up a large proportion of the

rocks on the planet. All asbestos rocks occur in, or separate very easily into, very small fibres or fibrils with a diameter of only a few nanometres.

Asbestos is a material which is banned and prohibited from being used on board ships because of the severe health hazards that it poses. Airborne asbestos dust - in the form of microscopic fibre shaped particles - when inhaled can penetrate the lungs and can cause lung cancer disease. Mesothelioma is a fatal disease caused by asbestos.

The level of danger presented by asbestos depends mainly on the substance it is ‘bound up’ in and how easily that substance can be damaged. This is referred to as friability. For example, asbestos solidly bound in concrete which is well protected and in good condition might be considered safe, but exposed concrete which can easily be damaged or become dusty is highly friable and dangerous. Asbestos contained in a plastic, such as a floor tile, is considered safe and even if the tile is damaged it is unlikely to become friable and release fibres.

The key issue for shipowners and operators is rigour in the source of supply and testing. There have been cases in Australia where new vessels have arrived with the appropriate asbestos clearance certification, but still asbestos was found on board. Shipowners and operators need to be confident that the certification not initiated by themselves is genuine (valid and unqualified).

For this reason it is recommended that a shipowner or operator pays to undertake its own third party scrutiny before the vessel is brought into the country. Any samples taken to check or validate should be analysed in a NATA approved laboratory. It is advised that an occupational hygienist is employed to inspect and sample the ship areas or plant.

Complex supply chains can result in a disconnect arising between the required and delivered specification of installed components. Undertaking asbestos surveys in ships requires a different approach to that of buildings. What is needed is a strong understanding of a vessels structure, its equipment and componentry, and the supporting supply chain. Often vessel maintenance is performed overseas and sometimes breaches in supply specifications can slip by un-noticed. This can cause severe financial risk to owners when asbestos containing products are later detected, resulting in costly delays in freight delivery and vessel charter costs.

International supply of componentry can allow asbestos materials to be supplied despite specification of requirements to be asbestos free. What is delivered and installed therefore may contain asbestos. Undertaking asbestos surveys in vessels requires a different approach to that of buildings and often requires intervention at the site of installation in the port. A strong understanding of a vessels structure, its equipment and componentry, and the supporting supply chain is essential. Often vessel maintenance is performed overseas and sometimes breaches in supply specifications can slip by unnoticed. This can cause severe financial risk to owners when asbestos containing products are later detected, resulting in costly delays in freight delivery and vessel charter costs.

Author Kevin White is a Principal Consultant at Greencap.

Regardless of the size or complexity of the project the highly experienced Greencap team can inspect, test and identify asbestos installations in any vessel or maritime structure. The Greencap team are not restricted to land based surveys but can also supply an ‘at sea’ service, potentially identifying refit work that may be required before sailing in Australian Waters.

39JULY 2017

PROUDLY SPONSORED BY:

SEA17 PHOTOGRAPHIC CONTEST

Paul Milburn – ABS shot with burn off and other rig in back ground.

Paul Milburn – ABS rig burn off.

Paul Milburn – deck operations anchor handling.

Paul Milburn – Close stand by.

Paul Milburn – Ensco burn off.

40

Paul Milburn – Ensco burn off 2.

Paul Milburn – IR josh with anchor chain.

Paul Milburn – FiFi Test.

Christian Messer – Sunrise Tasmanian Achiever Burnie.

Christian Messer – Melbourne departure.

Chstian Messer – Overhead Melbourne.

Jacob Bradbury – Eden.

Jacob Bradbury – Eden 2.

Jacob Bradbury – Aboard the Lica Maersk.

Jacob Bradbury – Nose to nose.

Christian Messer – Vicreldronecm.