NEWS

The following address was delivered by Brian Peters, Senior Surveyor Briar Maritime Services at the AIMS Conference, Hobart.

In November 2014 the Guidelines for Packing Cargo Transport Units (CTU’s) were replaced and upgraded from guidelines to a code of practice. It is now commonly known as the CTU Code. The original guidelines were produced by three UN agencies; the International Maritime Organisation (IMO), the International Labour Organisation (ILO) and the United Nations Economic Commission for Europe (UNECE).

There has been increasing concern throughout the intermodal transport industry that containers are being packed many miles from the sea without consideration for the fact that the cargo must be properly secured for the entire transit, including the sea voyage. The shipper has the responsibility for declaring, packing and securing the cargo. The nature of the transport chain can mean that once the unit is packed and sealed, it may not be opened again until it reaches the consignee.

The new code sets out to reduce damage to cargo caused by poor packing and securing within the CTU, with the overall aim of making the supply chain safer. The Code provides advice about the basic principles of planning and packing of CTUs and then securing the cargo in accordance with the proposed transport plan. The Code also includes information about the potential causes of cargo damage, such as condensation and infestation.

Three UN agencies are involved (IMO, ILO and UNECE) as the Code covers the entire intermodal transport network and not just the maritime sector. The Code includes all types of CTU’s and is not confined to Container Safety Convention (CSC) plated International Organisation for Standardisation (ISO) containers.

The Code has been drafted by a single working group affiliated to all three UN agencies and is available on the UNECE and ILO websites. The previous guidelines were hard to locate, although they did appear in the supplement to IMDG Code. The intention of the UN working group was to produce a Code that would be comprehensive and freely available throughout the supply chain, in order to promote it's use.

Although the Code has more authority than it's predecessor guidelines, it is still not a mandatory document. That said, it may be adopted into local law by national governments. Should sufficient national governments adopt the Code, it could in time, become globally mandatory in the same way as the IMDG Code.

The Code has 13 chapters and 10 annexes. Much of the information collated in preparing the Code was considered to be too specific or likely to become out of date and therefore was not included in the Code. This information has been designated as ‘related material’, and can be updated by interested bodies in the future. It is not envisaged that the Code will be updated regularly in the same manner as the IMDG Code.

An overview of the structure of the CTU Code:

Chapter 1

Introduction

Scope, safety and security

Chapter 2

Definitions

Clarifying commonly used terms in the carriage of a CTU. This is intended to promote standardised vocabulary used in CTU packing.

Chapter 3

Key requirements

Simple concise guidance for those packing and securing cargo in CTUs.

Chapter 4

Responsibilities

Making it clear who is responsible for each aspect of the supply chain.

Chapter 5

Transport conditions

A summary of forces that each transport mode places on the cargo, including consideration of the extremes of temperature the CTU would be exposed to and the possibility of the formation of condensation in certain climatic conditions.

Chapter 6

CTU properties

The properties of freight containers, regional and domestic containers, swap bodies, road and rail vehicles.

Chapter 7

CTU suitability

The necessity of selecting the correct CTU type for differing cargoes and transport mode.

Conclusion

The Code will only become effective if it is implemented by all parties involved in the transport supply chain. It is most important that the Code is advertised to shippers and packers of cargo. The ILO, IMO and UNECE will promote the Code. In the meantime, the UN working group of experts felt that one of the best methods to achieve rapid and wide acceptance, is for the container carriers to promote the Code when accepting bookings. The ILO website link, which will give free access to the Code and Annexes, could be placed on booking confirmations in order to help promote the Code.

Paul Baxter, Head of Litigation & Regulatory Team and Partner at DLA Piper delivered the following address at the 2015 AIMS Conference held in Hobart.

"Thank you for inviting me to speak at your annual conference and for bringing me to this lovely town in such tropical conditions compared to my home state Queensland.

Today I have been asked to enlighten you on some of the more general and current hazards and pitfalls of business life, Bribery, Corruption and Money Laundering and the Ethical Issues that intertwine with these. 

Bribery and corruption are as old as history, money laundering is a relatively new phenomenon in the days of ease of funds transfer but closer financial oversight and tracking, but both are facing increasing scrutiny and regulatory involvement.  Australia is not leading the field in this area, but with strong links into the UK and Europe, especially some of the traditionally strong shipping nations, you may feel some indirect effects and we can be certain further reforms in our own region are not far away.

So Bribery and Corruption, let's look at the current state of play.  I think it is fairly generally accepted that graft is a drag or parasite on an efficient and productive economy.  It equates to a fouled hull with masses of barnacles and weed weighing and slowing down profitable business.  If you do profit from bribery then it is at the expense of a competitor or customer and the overall good of the community suffers.  So let's have a look at the current state of play.

This map shows the perceived levels of corruption throughout the world based on the research of Transparency International.  Australia does quite well, but we are by no means top of the tree.  The Scandinavians and New Zealand are ahead, followed by us, Canada, the Netherlands and Switzerland.  But there are certainly some surprising staistics here.  Britain, Germany, Japan and the United States, financial power houses all have some greasing of the wheels going on leaking productivity.  China has widespread corruption which they are now trying to target as their standard of living lifts.  The PIGS states of Europe are burdened by widespread corruption.  And then our northern neighbours PNG, Indonesia, the Philippines, all the SE Asian mainland countries and India (Malaysia being slightly better) have heavy levels of corruption as well as Russia, and most of  Africa and South America.  And of course corruption is rife in countries where effective government and policing has broken down such as Somalia, Sudan, Iraq, Syria and interestingly North Korea

There is a strong correlation between corruption levels and standard of living.  Many ask which is the chicken which is the egg and indeed in some of the more anarchistic States organised crime provides a substitute form of stability and security that the government is completely unable to offer due to lack of resources or will from their leadership.  But it is definitely an option of last resort prone to gross inefficiency and abuse.

So with the advancement of globalisation, countries like the UK are leading the charge in enforcing reform.  The Bribery Act 2010 applies primarily to British businesses, it also extends to multi-nationals with a close connection to the UK.  It is for this reason international organisations, like DLA Piper are finding themselves having to comply with the Act across all their global operations.  This will become more and more common.  The Act also extends to foreign companies that operate in the UK.  Marine Surveying by its nature has more of a cross border flavour and so this will be of particular relevance to your sector either now or very shortly.

The Bribery Act makes it an offence to bribe someone, to accept bribery in return for improper performance of a relevant function or activity and for an organisation to fail to prevent bribery.  Furthermore for a company to defend against bribery charges it must have adequate procedures in place to prevent bribery.  Otherwise a company is liable for the conduct of its agent or employee.

Penalties for individuals are jail terms of up to 10 years and potentially unlimited fines for corporations.

So what precisely is bribery?  Historically there has been a spectrum with a blurred line between proper and improper conduct.  From brown paper bag drops through facilitation payments, lavish gifts, extravagant hospitality down to the simple business lunch.  Where is the line drawn?

The Bribery Act codifies what was previously a nebulous common law concept.

A bribe is the giving, offering or promising of an advantage with the intention of persuading the recipient to act improperly. They can be made directly or indirectly by someone on your behalf. the recipient might not be the ultimate doer of the act but has some influence. The bribe need not always be financial, just a benefit. The 2 key elements are the offer of advantage and the intention to influence.

So let's look at some scenarios. Corporate hospitality. The Act does not seek to restrict this as a legitimate business activity however it does draw the line where the intent is to influence the recipient to act improperly.  Showing that intent will of course be very difficult and reliance is placed on how the activity is viewed objectively and ultimately what a jury would make of the activity.

This is a vexed question because at its core corporate hospitality is designed to derive a benefit, the critical question is whether it induces improper behaviour.  Therefore it needs to be demonstrably proportionate and with at least arguable wholesome intentions.  A lunch to provide a relaxed setting to improve personal relationships is perfectly legitimate, however where the type of lunch become so lavish that it is remarkable, then the risk of impropriety rises.  However if you have a high wealth client a higher standard might be required to secure acceptance or the desired legitimate response to the hospitality.  The question you must ask is would someone viewing this hospitality from one side consider there was reasonable expectation of it influencing a decision relevant to the business.

So keep you bottles of wine commensurate with the setting and your guest and the extent of your relationship and do not try to impress by over extravagance.  It is a difficult line to walk but common sense will be a strong guide.

Facilitation Payments  

In Australia these are unheard of but in developing and 3rd world nations they are common.  They are payments to government employees or the like to speed up an administrative process where the outcome is predetermined.  "Grease payments" are permitted by many countries and organisations, notably the USA.  Whilst there is some logic to permitting these on the other hand they blur the lines and the British government has decide to take a hard line.  The payments by the AWB for shipments into Iraq, is a high profile example of a facilitation payment gone wrong.  In many cases it is almost essential to viable business operations and competitiveness in a region, yet it is now unlawful under the UK Bribery Act.  It will be interesting to see what becomes of this competitive inequality and whether market forces will get behind the UK high moral ground.

Corporate culture and enforcement.  Noting the corporate offence of failing to prevent bribery organisation will now need to demonstrate what measure they took to stamp out the practice.  A corporation can defend a charge if it shows it had adequate procedures in place designed to prevent bribery.  These measures will vary depending upon geography and culture, type of industry and susceptibility to bribery activities.

Some steps that can be taken.

 In Australia Commonwealth Criminal Code bribery offences limited to public officials.  Various state laws make it an offence to accept or give rewards to influence behaviour.

Money Laundering 

Probably not a high risk situation for Marine Surveyors but important to be mindful of the factors.

It is designed to obscure the criminal source of income so that it can be used in the mainstream economy without retribution.  Terrorist and organised crime are the targets.  Rose to prominence after 9/11 and the recognition of the increasing financial resources of disruptive illegal organisations.  Currently in Australia, legislative requirements are limited to the financial sector and gambling operators and bullion dealers.  But this is expanding.  Once again the UK leads the way with more widespread regulations extending through various professional bodies such as the Law Society.  Requirements of the regulations are to:

For lawyers, a common money laundering ploy is the receipt of random offshore instructions to pursue an outstanding debt.  Soon after instructions are received the debt is miraculously paid with little fight.  The money passes through the lawyers trust account and is laundered.  be on the lookout for transactions or requests that don't smell right or are too good to be true, especially where you do not know the entities involved.  In a Marine Surveying context the opportunities for money laundering are less obvious.  Be wary of transactions where payments or values just don't seem right. For example, the purchase of a vessel for what seems an exorbitantly excessive price where you may be asked to perform a valuation or survey.  it is wise to keep clear of these transaction or report them to the Australian Federal Police.

Integrity and Ethics

The last point raises an interesting issue, what is your obligation to positively do anything where you know of or suspect improper conduct?  The answer is, absent aiding or abetting a crime or being an accessory after the fact, you do not have a positive legal obligation to report suspect behaviour. However if you feel a moral obligation, then there is nothing to stop you from reporting suspected unlawful behaviour to the authorities provided this is not malicious or vindictive.  

There are always issues of confidentiality and possible defamation to be mindful of.  Sensitive information that comes into your possession may have express or implied confidentiality attaching to it the breach of which could expose you to civil liability in damages.  Similarly, publication of allegations damaging to someone's reputation can give rise to civil liability in defamation.  However communication to a relevant enforcement authority in good faith will usually be protected from suit.

So that is a brief overview of some topical issues in the world of global business that may impact upon you all.  Good luck in negotiating the minefield.  If you have any doubts, call a good lawyer.

 Thankyou."

Nominations are now open for the 2015 Lloyd's List Australia, Australian Shipping & Maritime Industry Awards.

The prestigious awards will be presented on 19 November in Sydney at the 20th Australian Shipping & Maritime Industry Awards gala dinner.

The 11 award categories open for nomination are:

Environmental Transport Award

Safe Transport Award

Freight Forwarder of the Year Award

Project Cargo Award

Seafarers Welfare Award

Customs Broker of the Year Award

Maritime Services Award

Supply Chain Excellence Award 

Port or Terminal of the Year

New Generation Award

Australian Maritime Hall of Fame

Nomination is easy with no set form or template. A short description of the person or your business, initiative, site, technology or product in your own words is all that's required. Supporting photographs and/or testimonials are also welcome. 

Simply click here to nominate online or send your nomination via email to 
Ronda.McCallum@informa.com.au.

To discuss a nomination, call Ronda McCallum on 02 9080 4354.

NSW Ports has appointed Marika Calfas as acting CEO following the resignation of Stephen Cleary, effective 13 August. 
 Mr Clearly was responsible for the ownership transition process from a publicly owned operation to a private lease two years ago.  

"Through the appointment of Stephen Clearly, we found the the qualities and drive required to achieved the objectives," NSW Ports chairman Paul McClintock said in a statement. 

"Stephen's leadership and successes have been reinforced by the highly capable executive team that he has managed."

Ms Calfas is currently NSW Ports executive general manager - strategy, planning and infrastructure and will undertake the role while the NSW Ports' Board undertakes a targeted search process for the CEO role. 

AMSA's Navigation Safety and International Relations General Manager Brad Groves has been elected as Chairman of the International Maritime Organization’s Maritime Safety Committee for 2016.

The election was conducted on 11 June, 2015 during the 95th session of MSC at the IMO’s headquarters in London.

The Maritime Safety Committee (MSC) is the International Maritime Organisation’s (IMO) senior technical body on safety-related matters, and the appointment is a major achievement in the maritime industry.

Mr Groves has been working at AMSA since 1998, and he was appointed General Manager of the then Maritime Standards Division at AMSA in 2010, before heading up Navigation Safety and International Relations.

His current role has responsibility over a number of maritime safety matters, aids to navigation, the management of vessel tracking, coastal pilotage plus government and international coordination matters.

Mr Groves first became involved with the IMO in 2001. He has previously chaired the IMO sub-committee on Human Element, Training and Watch keeping, and prior to becoming MSC Chairman, Mr Groves headed up Australia’s delegation to the MSC and supported AMSA’s Chief Executive Officer at IMO Council.

He has also been responsible for Australia’s involvement in regional arrangements such as the Asia Pacific Heads of Maritime Safety Agencies (APHoMSA).

Mr Groves said he was honoured and humbled to be elected as chairman of the Maritime Safety Committee, and was looking forward to delivering appropriate outcomes for the maritime community.

“Shipping is one of the world’s great industries but it does have its hazards. It’s long been clear that the best way of improving safety at sea is by developing international regulations that are followed by all shipping nations. This remains at the core of the work of the Maritime Safety Committee and the IMO overall,” Mr Groves said.

“I have seen many issues discussed since I was first involved in MSC discussions. Despite the progress we have made, we still have large responsibilities ahead and I look forward to progressing this important work,” he said.

Mr Groves also expressed his appreciation for the work of previous MSC Chairman, Christian Breinholt, Deputy Director-General of the Danish Maritime Authority.

The Australian Maritime Safety Authority has prosecuted two shipping companies and their masters for two separate marine pollution incidents within the Great Barrier Reef.

Tokyo based Perses Maritima Ltd and the master of its Japan registered vehicle carrier Asteria Leader were found guilty on May 18 in the Brisbane Magistrates Court on one charge each of illegally discharging garbage under the Protection of the Sea (Prevention of Pollution from Ships) Act 1983.

A routine Port State Control inspection conducted by an AMSA marine surveyor at Fisherman Island in the Port of Brisbane revealed a record of the discharge of 0.03m3 of food waste within the Great Barrier Reef on October 8, 2014.

Perses Maritima Ltd was fined $5000 for the illegal discharge and the master of the ship was fined $500.

Hong Kong based company Seaspan Corporation and the master of its Hong Kong registered container ship CSCL Brisbane were found guilty of illegally discharging garbage on August 6 last year within the Great Barrier Reef Marine Park.

The illegal discharge was also discovered by an AMSA marine surveyor during a routine PSC inspection at Fisherman Island.

It was also found that the ship’s passage plan did not take into account the required marine environmental protection measures as per the safety of navigation requirements prescribed by the Safety of Life at Sea (SOLAS) international convention.

Seaspan Corporation was fined $6000 for the illegal discharge and the master was fined $600.

AMSA Chief Executive Officer Mick Kinley said it was disappointing ships were failing to adhere to the measures in place to protect sensitive marine areas, such as the Great Barrier Reef.

But the discovery of the illegal discharges showed Australia’s PSC regime was both rigorous and effective, Mr Kinley said.

“Australia has a robust PSC regime, which is designed to ensure ship owners and their masters are adhering to the rules and regulations to prevent marine areas from being polluted,” Mr Kinley said.

“These prosecutions highlight to the shipping community if they flout the regulations they can be caught and subsequently prosecuted.” 

The Standard Club and ICS have launched a ‘Spot the Hazard’ competition open to any seafarer worldwide to help those working at sea identify hazards and promote accident prevention.

There are five different opportunities to win by spotting 10 hazards.

For each picture, a US$2,000 prize will be awarded to the seafarer who, in addition to correctly identifying all 10 hazards, also provides (in the opinion of the judges) the best safety idea. 

Further details are available at http://www.hazard-competition.com.

 Please submit your entries to  submissions@hazard-competition.com before 28 August 2015.

 The results will be announced within 120 days of the closing date. 

Transport Minister Warren Truss has outlined the coalition's plan to amend the previous Labor government's shipping laws at a Shipping Australia Luncheon in Sydney.

Read his speech here.

Ladies and gentlemen, eight months ago I spoke to you about the need for coastal shipping reform in Australia.

For an island nation like Australia, with vast distances between most of our major cities, all of which are by the sea, it makes sense for coastal shipping to play a vital role in our transport network.
 Yet as we have seen, coastal shipping volumes have continued to decline and the number of Australian flagged vessels continues to slip with only 15 major trading vessels remaining with a general licence to undertake coastal trading.

Ships in Australia on transitional licences are leaving too. When the current system started there were 16, now there are just 8. The case for reform is crystal clear. So, today I want to talk to you about the next steps the Government plans to take to address these problems and fix Labor's failed coastal shipping legislation.

What I am announcing today is a substantial deregulation of coastal shipping, with built-in protections to maintain Australian skills and to ensure the payment of appropriate wages and conditions for seafarers on foreign ships operating primarily in the Australian coasting trade. Importantly, all ships will still have to meet Australia's strict maritime safety and environmental provisions, which are rigorously enforced by the Australian Maritime Safety Authority.

It goes without saying that maintaining our high standards of safety at sea and the protection of our sea environment, particularly the Great Barrier Reef in my home state of Queensland, are essential. It is time to recognise that shipping operates as part of a global network with global connections, and it is time to embrace the opportunities that these global connections make possible. Labor's tinkering has failed.

The unions have had their try. The previous Government gave the unions what they asked for and it has predictably failed. It has cost Australian jobs on the water and on land -- and if we continue down the current path, it is likely to put a lot more jobs at risk. Jobs in our manufacturing industries, jobs in aluminium and mineral processing, gypsum, cement and sugar... to name just a few. Australia's economic health depends on its competitive efficiency in a tough global marketplace, which is only getting tougher.

It does not help our national cause or our national interests when coastal shipping is bound by regulations that are designed to fail, like having a minimum waiting period before an application can be approved of up to two business days - even when there are no Australian licensed ships that are suitable to carry the cargo. Nor does it help anyone when a piece of oversized, heavy machinery cannot be moved by ship and must go by road --all because this would constitute a single voyage, and you cannot get a Temporary Licence for a single voyage.

Shipping is, unashamedly, a priority area for this Government's broader reform agenda. Without reforms to our economic and regulatory settings, Australia risks falling behind in the world market.  We must look more closely at the micro economic reforms and deregulation, which are needed to underpin productivity growth.  However, changes have to be well thought through, balanced and capable of being sustainable over the long-term if we are going to encourage a buoyant coastal shipping industry.

As I told a recent ALC conference, the national story is not all about road and rail... in a vast country, girt by sea and at such great distances from major global hubs, sea freight movements are a critical part of the national and international supply chain. As you are more than well aware, our major sea ports are also our international trade gateways and we rely on maritime transport for 99 per cent of our exports. I put it to you that, the ships are here... so why don't we make better use of the shipping routes lapping our coast?

A substantial proportion of our domestic freight also depends on coastal shipping but as things currently stand, the coastal trading sector is at a crucial way-point.  In 2012-13, Australian ports managed more than $400 billion worth of international cargo and saw over 4,900 overseas cargo ships make around 14,000 port calls.   Clearly, coastal voyages by international and domestic ships should be growing and to do that we need to overhaul the current arrangements.  

Our policy is all about utilisation of resources in the most efficient way possible. Although some specialised ships have joined the fleet to service niche markets, the heavy carriage side of the industry has seen nothing but ship retirements. The fleet of major Australian registered ships with coastal licences has been declining over decades and in the past decade alone, from 30 in 2006-07 to just 15 in 2013-14.  

And what that means is that there aren't enough ships to move our cargo and for some cargoes there aren't any Australian ships at all.   You have told the Government that you prefer ships under 15-years-old because they are more fuel efficient, break down less and cost less to insure.  In 2013, 49 per cent of the ships in the world fleet were under 15-years-old and 79 per cent of the world's gross tonnage was under 15-years-old.   In contrast, the average age of an Australian ship in the major trading fleet and operating under a general licence is 23 years.  

The introduction of the Coastal Trading (Revitalising Australian Shipping) Act 2012 (Coastal Trading Act) has not revitalised Australian shipping. In fact, it has gone a long way to sinking the industry. Indeed, over the first two years of the Coastal Trading Act the total deadweight tonnage of major Australian flagged vessels with a coastal trading licence sunk by 63 per cent. As a government, we see great opportunities for growth and expansion and the opportunity to take a good proportion of long-distance cargo off the rail networks and the highways and onto coastal shipping once we get the regulatory monkey off the industry's back.

Work has progressed on a raft of issues to allow this to happen, including returning the Protection of the Sea Levy back to its original level of 11.25 cents per net registered tonne. And we have saved the industry millions more each year with the abolition of the carbon tax on the fuel used in domestic shipping. Today, I am pleased to announce that we have taken a further, and very important, step towards putting in place a regulatory framework which strips back the red tape.  

The new framework is outlined in the paper that will be circulated to you. This is a framework that fosters an environment where industry that can make the most of domestic and international opportunities, and be responsive to changing patterns of demand. We will introduce a single, streamlined permit for all ships -- Australian and foreign -- operating along our coast.

The new permit will replace the complicated licensing system we have at the moment.  This permit will allow Australian and foreign ships to carry goods and passengers on unlimited domestic voyages during the 12 months of the permit. There will be no requirement to nominate voyages upfront for approval and, as a result, there will be no need to seek variations to cargo type or volumes carried or the dates voyages are undertaken.  

Reporting on activities will instead be done twice a year, halfway in, and then at the end of the permit period.   This is much simpler than applying for a voyage that is likely to happen, reporting on what you think you'll do beforehand, and then reporting again on what you've actually done after the voyage is over. Vessels operating under a permit will be protected from importation requirements by Customs, including when carrying out scheduled maintenance.  

This will mean more business for Australian dry-docks and repair facilities. The large cruise industry, whom are currently exempted from the operation of the Coastal Trading Act, will also be included within the operation of the permit system. This means that cruise ships can stay for repairs rather than going to Singapore or elsewhere, and it will help keep cruise ship visitation figures up. The Government is also fixing some of the issues with the coverage of the existing framework.  

The new permit system will allow the carriage of petroleum products from our offshore facilities to the mainland for processing. Currently the processing is happening overseas and the fuel is being shipped back because offshore facilities are outside the confines of the current legislation. Because the Government genuinely cares about seafarer welfare, ships trading here for more than 183 days in a permit period will be required to pay all their crew an Australian wage set out in law.

Labor's Fair Work Act and Part B safety net will apply if a vessel engages in more than 183 days of coastal trading in a permit year. If a vessel spends most of its time trading in Australian waters, you will have to pay Australian wages and meet Australian conditions. Additionally, ships trading for more than 183 days will be required to employ a Master or Chief Mate and a Chief Engineer or First Engineer who is an Australian or who has Australian work rights.

We recognise that Australian skilled seafarers are renowned for their expertise throughout the world. We need to maintain these key maritime skills in Australia and ensure we are training the engineers, masters and pilots of tomorrow. Australia's strong environmental and safety laws will continue to apply to all ships operating in Australian waters. As you are aware, foreign ships operating in Australian waters are subject to Australia's port state control regime, administered by the Australian Maritime Safety Authority.  

Our port state control regime is second to none in world terms.   And if you do the wrong thing, regardless of the flag your ship carries, AMSA will detain your ship until it is fixed, and if you still don't get the message they can direct you out of Australian ports and not to come back. The Government also plans to amend the Australian International Shipping Register to remove the requirement for a collective agreement between the owner of a vessel and the Seafarers' Bargaining Unit and the requirement for a vessel to be predominantly engaged in international trading. Similarly to vessels predominantly engaged in domestic trading, vessels wishing to be on Australia' second register will have to have two senior Australian crew on board.

Shipping in Australia has been in a long-term downward spiral.  We need to turn that around. The common sense reforms we are implementing will do just that. Cheaper freight costs will help the viability of manufacturers and primary producers and, as these industries grow, so will their demand for shipping services. Greater choice between shipping companies will lead to better services being provided to customers. Easy access with simplified rules for moving cargo will show the global marketplace that Australian waters are once again "open for business".

More services for shippers and less regulation means it will be easier for businesses to arrange spot transport of cargoes and for more ships to service Australia. Moving containers from road or rail to the sea will free up road infrastructure for the transport of more valuable or time-critical cargo and that means less congestion on roads and rail. Cheaper freight rates and more efficient services will make Australian products more competitive in both international and domestic markets, saving current jobs in industries that use shipping and creating new ones.  

Increased shipping volumes means more landside maritime jobs.   And, importantly, critical maritime skills will be preserved, with key positions on ships working predominantly in Australia reserved for people with Australian work rights. The reforms I have outlined today have been undertaken after comprehensive consultation with all parties concerned with the Australian shipping industry and I thank everyone, including Shipping Australia, for their participation and frankness.

Legislation is currently being drafted with a view to its introduction before the end of the current Winter sittings.   Once the drafting process has concluded, the Bill will be the subject of full public scrutiny through Parliamentary committee processes. This will allow all stakeholders to comment on the detail of the measures I have outlined today. However, I firmly believe that if we could better utilise just a fraction of the capacity on the foreign ships that visit our shores, it could make a major difference to the efficiency of Australia's sea freight movements.

That's what this policy is about.   It's simple economics - if you have an underutilised resource, you should maximise its utility.   This government recognises it, shippers recognise it and it's a change the industry needs to accommodate. The measures I've announced today are a substantial change to the existing framework and will deliver advantages across the economy.   Without change, we will just have more of the same.   More delays, more inflexibility and more uncertainty about how ships can be used to meet Australia's freight transport needs.  

This framework will repair the existing mess and will set Australia on the right path to meet its future transport needs. I'm sure that you will have a number of questions and I am happy to answer them.

Thank you

Budget papers confirm Abbott Government will attempt to throw another Australian industry on the scrap heap with announcement it intends to radically alter or remove the Coastal Trading Act.

MUA National Secretary Paddy Crumlin said that if implemented, this represents a radical policy change that is ignorant or negligent to the critical importance of a domestic shipping industry.

“The MUA strongly urges that the Coastal Trading Act is not unwound as it is demonstrably in the national interest to retain and grow the coastal shipping industry,” Mr Crumlin said.

“These changes could spell disaster on a number of fronts – maritime jobs, skills, fuel security, maritime security and pose a threat to the environment.

“Deputy Prime Minister Warren Truss has finally shown his hand in his ongoing efforts to unwind the Coastal Trading Act and open up Australia’s coast to foreign shipping.

“The Abbott Government’s changes could directly impact around 2,000 direct jobs and up to 8,000 associated jobs so 10,000 Aussie jobs could be on the chopping block.

“But rather than protect local jobs, the Abbott Government wants to open up our coast to all comers – carrying such substances as car and jet fuel, diesel and ammonium nitrate.

“There could also be a significant impact on the offshore oil and gas sector - with limited visa regulations and oversight. “It simply doesn’t make sense and indicates the Abbott Government is on yet another ideological crusade against unions, pushing blindly forward without thinking of the consequences.” 

Mr Crumlin said the 2012 changes to the Navigation Act and introduction of the Coastal Trading Act were the biggest maritime reform since the passing of the Navigation Act 100 years ago. “The reforms have the potential to create employment, sustain business opportunities and productivity and build the national interest through an industry that is critical to the quality of Australia’s economy, environment and way of life,” Mr Crumlin said. “We need to maintain a regulatory framework that provides an access regime built on the principle of fair competition that provides for both Australian ships and foreign ships to meet the coastal freight needs of shippers.

“What we don’t want to see is more Flag of Convenience (FOC) ships, with their poor standards and exploited crews, take over our ports and displace Australian vessels.” “Australia is one of the world’s great shipping nations – in both wartime and in peace.

“One in eight merchant seafarers were killed in the Second World War in our territorial waters and we shouldn’t be making changes which could impact our front line of maritime security. “All of that history and skills base could be sunk by cheap political ideology and policy negligence which would see widespread tax avoidance, third world safety standards and non security-profiled international seafarers servicing a domestic industry on a full time basis.

“It is a policy decision designed to replace Australian workers in an Australian industry with workers more exploited then those agricultural workers recently exposed by the Four Corners program.”

See more on the Maritime Union of Australia website. 

Do you know of an outstanding person, product, technological innovation or business service in the Marine Survey Industry that deserves national recognition?

Nominations for the inaugural AIMS Awards for Excellence open today Friday 8 May. Nominations will remain open until close of business Friday July 3 2015.

These national Awards recognise organisations and individuals who are our industry leaders in marine survey operations, business and technology services to the industry, innovation, training and workforce development.

Winners will be announced at the AIMS Awards for Excellence Gala Dinner to be held at the Grand Chancellor Hotel Hobart on Thursday 13 August 2015. 

For more information on the Gala Dinner and AIMS Conference, please click here.

Your application must be made on the Nomination Form available here