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The Innocent Stevedore (or how I came to better understand the Waterfront)

MIG MLAANZ Seminar Series Sydney. The Innocent Stevedore (or how I came to better understand the Waterfront). February 2007. Agenda. Introduction Seminar objective Why the Innocent Stevedore? Australian Stevedoring context The Transport Logistics Chain Principal locations

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The Innocent Stevedore (or how I came to better understand the Waterfront)

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  1. MIG MLAANZ Seminar Series Sydney The Innocent Stevedore(or how I came to better understand the Waterfront) February 2007

  2. Agenda • Introduction • Seminar objective • Why the Innocent Stevedore? • Australian Stevedoring context • The Transport Logistics Chain • Principal locations • Service providers • Industry issues • Stevedoring risk management – key issues • Legal considerations for stevedores • Summary • Q&A Source: Patrick Terminals

  3. But first – another greatclaim

  4. Introduction – Seminar objective • Objectives • To understand legal claims in the context of Australian stevedoring industry • Opportunities to reduce claims involving the waterfront

  5. Introduction – Why the Innocent Stevedore? • Fact or fiction - does the Innocent Stevedore exist? • Stevedores’ place in transport/logistics chain exposes them to a variety of risks, many (not all) beyond their control. • Demands of transport/logistics chain require stevedores to invest heavily in • Capital equipment • Technology • Facilities • Trained labour • Procedures • Customer demands drive stevedoring efficiency, costs and reliability • Stevedore’s requirement to balance these demands with safety and vessel/cargo care considerations • Stevedores may not be (quite) perfect, but above factors combine to require stevedores to invest heavily in risk management strategies to avoid WCI and vessel/cargo damage claims

  6. 2. The Australian Stevedoring Industry context - the Transport/Logistics Chain Source: Sydney Ports Handbook, March 1995

  7. 2. The Australian Stevedoring Industry context - principal locations Source: P&O Ports Ltd

  8. 2. The Australian Stevedoring Industry context - Australian stevedoring service providers A. General Stevedoring Operators – Port coverage summary

  9. 2. The Australian Stevedoring Industry context - Australian stevedoring service providers B. Terminal Operators – equipment overview Approx estimated replacement value = AUD 715M Sources: Various

  10. 2. The Australian Stevedoring Industry context - Australian stevedoring service providers B. Terminal Operators – 2004/05 & 2006/06 5 Port Performance Indicator Summary

  11. 2. The Australian Stevedoring Industry context - Australian stevedoring service providers B. Terminal Operators – the future outlook Source: BTRA Working Paper 65 – ‘Container & Ship Movements through Australian Ports 2004/05 to 2024/25’: (08/2005) • Australia’s total containerised trade • increased by 8% over the past 5 years • is forecast to grow over next 20 years by 5.4% pa (from 5.2M TEUs to 14.9M TEUs in 2024/25 (286%)

  12. 2. The Australian Stevedoring Industry context - Australian stevedoring service providers B. Terminal Operators – the port interface • Transport/logistics chain • efficiency driven by • player interfaces • distance • location • mode • The more interfaces, the more risk • Stevedores rely on performance of other players Source: SPC Handbook 2006

  13. 2. The Australian Stevedoring Industry context - Australian stevedoring service providers C. Industry issues • Performance • Reduce vessel turnaround time • berthing windows, minimise restows, • increased equipment [cranes, straddles], • improved technology (terminal management systems, automated yard equipment) • Reduce truck turnaround time • Match R&D shifts to vessel working shifts • Improved technology & processing (1Stop VBS, PRAs) • Improved terminal handling (efficient terminal layouts, new equipment) • Maintain labour productivity • Bonus vs OH&S/WCI • Training, career opportunities

  14. 2. The Australian Stevedoring Industry context - Australian stevedoring service providers C. Industry issues • Competition • Reduce costs/increased efficiency? • increased investment/labour, same throughput • interface coordination (ships/terminal/trucks/train/cargo owners) Source: Patrick Terminals

  15. 2. The Australian Stevedoring Industry context - Australian stevedoring service providers C. Industry issues • Future development • Terminals • Reduced berthing windows/ larger vessels • Improved stack density • Improved road/rail interface • Port land cost • Road/rail • Increase rail capacity to 40% total landside exchange • Adequacy of track and road access • Intermodal/inland terminal development • Landbridging options – East/West, Melbourne/Brisbane Source: Patrick Terminals

  16. 2. The Australian Stevedoring Industry context - Australian stevedoring service providers C. Industry issues • Port Security • Terrorism legislation • Vessel/Terminal/cargo security/access • Increased regulation: surveillance/disclosure

  17. 3. Stevedoring risk management - key issues • Managing the waterfront player mix – operational services • Vessels, terminal, trucks, trains, cargo owners: operating rules • Berthing windows • VBS • Rail windows • PRAs • Vessels: fit for purpose • Labour: productivity vs safety • Cargo care: security, safety (hazardous cargoes/DG’s) • Data: vessel stow plans, manifests, cargo documentation – accurate & timely provision • Storage: minimising terminal congestion • R&D: reasonable cargo cutoffs

  18. 4. Legal considerations for stevedores • Customer warranties • Is owner/authorised agent of vessel/container/goods? • Has customer accurately & fully described goods/containers & provided all necessary info/instructions re handling/care & control having regard to their nature? • Do goods/containers/vessel comply with all applicable laws & will customer provide stevedore with all assistance to enable compliance?

  19. 4. Legal considerations for stevedores • Customer warranties • Are goods packed to withstand ordinary risks of stevedoring? • Are customer vessel, containers, equipment in survey/fit & proper condition for stevedoring? • Has customer disclosed full description of any DGs or temperature controlled goods re stevedoring handling? • Will goods be removed within 3 days after discharge (unless otherwise agreed)?

  20. 4. Legal considerations for stevedores • Customer warranties • Will customer incorporate an effective Himalaya clause in the B/Ls, noting that stevedore will have benefit of the B/L provisions? • Will no other party make a claim against the stevedore other than the customer for stevedoring services?

  21. 4. Legal considerations for stevedores • Stevedore’s rights • Entitled to deliver goods to bearer of B/L • If stevedore believes goods are DGs or vessel/container/goods do not meet statutory requirements or are unsuitable for stevedoring, it may refuse to provide services or take appropriate measures to ensure compliance or safe to handle • Lien - stevedore can relocate or dispose of containers/goods not removed from wharf

  22. 4. Legal considerations for stevedores • Stevedores’ liability • Generally relates to stevedore’s negligent act/omissions • Excludes liability for inaccurate documentation • Generally excludes consequential losses • Subject to time bars (normally requires suit to commence 12 months from date of container/goods delivery or vessel arrival at facility or date of incident) • Force majeure • Broad definition • Extends to include storm/wind damage

  23. 4. Legal considerations for stevedores • Liability issues • Substandard vessel/container presentation • Vessels: AMSA Marine Orders • Containers: when is a unit too old? • Reefer containers/cargoes • Stevedores extensive reefer handling procedures • PRAs • vessel manifests • receivals • monitoring

  24. 4. Legal considerations for stevedores • Liability issues • DGs/Hazardous Goods • non/mis-declaration – description, handling • inappropriate presentation, packaging or stowage • Inadequate container presentation • overloading • poor packing • insufficient cargo packaging (protection & secural) • Truck damage • understanding terminal procedures • is truck suitable (ie, side lifters)?

  25. 5. Summary • Stevedores investing now for significant future growth • Focus on cost-effective service delivery • Interest in OS&H & vessel & cargo care, with • minimised injuries, and • minimised damage to vessels & cargo • Stevedores part of dynamic transport logistics chain • Relies heavily on other players’ performance – a 2 way street • Stevedores operate in certain legal framework, with obligations clearly identified • No new obligations, but details changing • Reduce risk of waterfront damage • Understand risks, improve procedures, educate staff The innocent stevedore – your call!

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