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Home Blog Page 56

APPEA says Code of Conduct will harm gas industry

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APPEA has released its submission to the Federal Government’s consultation paper, Options to ensure the domestic wholesale gas market delivers for Australians, criticising the proposed mandatory code.

In its submission, APPEA says it is a critical time for the sector after the Australian Competition & Consumer Commission (ACCC) recently warned of gas shortfalls from 2027 and recommended new supply to avoid upward pressure on domestic gas and electricity prices.

APPEA says the proposed approach to a mandatory Code of Conduct risks doing the opposite – undermining the case for new investment and creating a supply crunch.

APPEA Chief Executive, Samantha McCulloch, said, “These are the worst possible reforms at the worst possible time for Australia’s cleaner energy future.

“These interventions will reduce investment and ultimately increase the risk of gas shortages and further price increases – the opposite of what the ACCC say is needed.

“As with the introduction of the temporary price cap – when markets froze and investment was spooked – the proposed mandatory Code risks causing maximum disruption with minimal benefit to Australians.”

APPEA has suggested three measures to guide reforms to put downward pressure on prices and avoid supply shortfalls.

APPEA argues that the principles and processes agreed in the voluntary Code endorsed by the Federal Government in September 2022 should form the basis of any mandatory Code, as it was never given a chance to work.

“The voluntary Code – agreed to after two years of good faith consultation involving industry, customers and government, and backed by the ACCC – addresses the key principles and inclusions of the proposed mandatory Code in a workable way,” Ms McCulloch said.

The industry has also recommended that the market be allowed to work given the unintended consequences of permanent price controls.

“Permanently regulating prices can’t factor in the complexities of the market and will only slash competition, distort the market and risk energy security,” Ms McCulloch said.

“This measure would see the government set the price at what they consider ‘reasonable’, with the option to change the rules at any time.”

APPEA suggests a more flexible arbitration process without any binding framework impacting business decisions.

“Sellers and buyers will not make billion-dollar decisions when the economics of their investment may be derailed by the outcome of a future arbitration process that is outside their control and can dictate when, where and how much gas is supplied, and at what price,” Ms McCulloch said.

Ms McCulloch also said the sector understood the challenges faced by businesses and consumers due to energy system pressures and was committed to delivering competitively-priced gas.

Ms McCulloch notes recent economic studies that had found intervention and price controls would drive up prices in the long-term after investment in new supply diminished.

“ACIL Allen found wholesale gas prices could rise by 40 per cent while households could face rises of up to $175 annually because investment in new supply reduced.

“APPEA and its members remain committed to working with government to find an effective, workable, and sustainable way forward that ensures sufficient supply and puts downward pressure on prices.”

Celebration as Queenscliff Ferry Terminal opens

The multi-million Queenscliff Ferry Terminal has officially opened, offering passengers modern facilities and a safer car and passenger ferry service between Sorrento and Queenscliff in Melbourne’s Port Phillip Bay.

The redevelopment is jointly funded under the Geelong City Deal, with the Federal Government contributing $10 million and Searoad Ferries contributing the balance of project costs.

Federal Member for Corio, Richard Marles, joined Federal Member for Corangamite, Libby Coker, and Member for Bellarine, Alison Marchant, to represent the Victorian Minister for Regional Development, Harriet Shing, at the formal opening of the completed ferry terminal redevelopment supported by the Geelong City Deal.

Mr Marles called the completion of the ferry terminal redevelopment a great win for Greater Geelong.

“The Queenscliff Ferry Terminal will open up another gateway into the beautiful city of Geelong and its surrounds,” Mr Marles said.

“The modern new terminal, along with the many thousands of passengers that Searoad Ferries will bring, is going to be great for local tourism and business.”

The new terminal building and site features modern facilities and bathrooms, safer access, improved car parking, function rooms, a retail space and indoor and outdoor dining offering spectacular views of Port Phillip Bay and Port Phillip Heads.

The new terminal building was designed by F2 Architecture and built by Kane Construction.

Ms Coker said, “From the first crossing in 1987 to the opening of this new facility, the ferry service in Queenscliff has connected people on both sides of Port Phillip Bay. This new terminal will secure local jobs and boost tourism in the region.”

The terminal opened prior to completion in December 2022 to accommodate high visitor numbers to the region over the summer peak season.

The final stage of the project, completed at the beginning of 2023, delivered a new public boardwalk and gantry providing an accessible and safe route for passengers to board and disembark the ferry, as well as an upper level of the terminal building and other outdoor elements.

The completion of the redevelopment delivers a safer and more enjoyable experience for motorists and pedestrians using the car and passenger ferry service.

The Queenscliff Ferry Terminal supported 71 new jobs during construction and an additional 22 new ongoing jobs within the ferry operations.

Ms Shing, said, “This Geelong City Deal project provides an economic boost to the region – creating more jobs and more reasons for people to experience this world-class gateway to Geelong and the Great Ocean Road.”

Searoad Ferries is the iconic car and passenger ferry service between Sorrento and Queenscliff in Melbourne’s Port Phillip Bay.

CEO at Searoad Ferries, Matt McDonald, said, “The new Queenscliff Ferry Terminal provides Searoad Ferries’ customers with a world-class experience. It has delivered an improved infrastructure project between government and the private sector that holds enormous potential for creating jobs and boosting the local economy.”

Operating since 1987, the service carries more than 250,000 vehicles and 960,000 people every year making it the busiest car and passenger ferry service in Australia.

Ms Marchant, said, “This exciting development creates an unbeatable experience for locals and visitors and delivers a tourism drawcard for the region that will strengthen the local economy and build new jobs in our communities.”

The $500 million Geelong City Deal is a plan to transform Geelong and the Great Ocean Road by the Federal and Victorian governments, and the City of Greater Geelong.

Moorebank Interstate Terminal begins construction

The Moorebank Logistics Park (MLP) has officially begun construction, including a container handling facility and a dedicated rail link to Port Botany, funded by a $570 million boost from the Federal Government.

Federal Minister of Infrastructure, Transport, Regional Development and Local Government, Catherine King, said, “The progress being made at Moorebank demonstrates our government’s commitment to supporting a more efficient, resilient and integrated transport and logistics supply chain, which is vital for many Australian businesses and the national economy.

“This project will significantly enhance the resilience of Australia’s supply chain, while providing thousands of local jobs and reducing transport emissions.

“It will also support more competitive freight costs, reduce traffic congestion, increase road safety and deliver better environmental outcomes.

“This is yet another example of our government’s commitment to delivering the world-class infrastructure that will form the backbone of Australia’s future economy.”

The project is expected to support over 1,300 jobs during construction and 6,800 ongoing jobs once operating at full capacity.

With the capacity to service 1,800m long interstate trains, each moving approximately 1,500t of consumer goods, the terminal will become a major interchange point for freight along the east coast.

This will replace over 100 B-double trucks per train trip, reducing congestion on Australian roads while facilitating the expected increase in future freight volumes.

With a site area of over 240h – equivalent in size to the Sydney CBD – the entire MLP will include:

  • The already operational dedicated rail link to Port Botany
  • The now underway interstate terminal, which will link Sydney, Melbourne and Brisbane
  • Over 850,000m2 of state-of-the-art warehousing
  • Links to key roads, including the M5 and M7

Federal Minister of Finance, Katy Gallagher, said, “Faster and more reliable freight transport services will be beneficial to the Australian economy.”

“It not only provides savings for businesses, but it will also lower prices for Australian families, helping alleviate cost of living pressures.”

The MLP will complement the progressive freight enhancements in the national network such as the additional capability brought online through Inland Rail, as well as terminals for Melbourne and Brisbane.

With works on the container handling facilities commencing, the interstate terminal remains on schedule and will be operational early 2024.For more information on the Moorebank Interstate Terminal, visit www.micl.com.au/interstate-terminal

Port Rail Transformation Project opens new two-way road

The Port Rail Transformation Project (PRTP) is set to provide better rail freight solutions through the official opening of a new permanent two-way, single lane in each direction, port vehicle road connecting Dock Link Road and Mullaly Close/Coode Road.

The new road has been named Intermodal Way and is a reflection of the seamless integration of maritime, rail, and road freight modes which converge at the port to move vital cargo that supports the operation of communities, the state, and the nation.

The new road will also make it more efficient to move containers by rail and bypassing roads in inner Melbourne.

Intermodal Way provides an uninterrupted east-west connection for the movement of containers between Dock Link Road and the wider port area.

The new port vehicle road also facilitates the closure of a section of Coode Road between Dock Link Road and Phillipps Road.

Port of Melbourne CEO, Saul Cannon, said, “We are thrilled to announce the completion and opening of Intermodal Way, a key component of the Port Rail Transformation Project.

“We are proud of the progress we have made with the PRTP and are excited to see the benefits it will bring to the port and the wider community.

“This is important progress on meeting the growing demand for better rail freight solutions and will enable more containers to be moved by rail more efficiently, bypassing roads in inner Melbourne.”

The PRTP involves the development and construction of a new rail terminal interfacing with the Swanson Dock East International Container Terminal. The rail terminal includes two new sidings that can handle 600m long trains. Common user rail infrastructure will also be upgraded.

NSW Ports welcomes Federal Court decision on ACCC appeal

The Federal Court has dismissed the Australian Competition and Consumer Commission’s (ACCC) appeal over New South Wales’ ports privatisation process, upholding the 2021 judgement that the Port Commitment Deeds between New South Wales and NSW Ports do not have any anti-competitive or illegal purpose or effect.

Federal Court Justice, Jayne Jagot, said that the Port Commitment Deeds between the state and NSW Ports do not have any anti-competitive or illegal purpose or effect.

NSW Ports CEO, Marika Calfas, has described the decision as a win for economic certainty and prosperity across the state, benefiting consumers, exporters and importers.

“Maintaining the right ports and freight strategy to cater for New South Wales’ growing trade needs is crucial to the state’s economic future,” Ms Calfas said.

“Port Botany and Port Kembla are key economic drivers for New South Wales and the nation, contributing more than $13 billion a year to the state’s economy and supporting 65,000 jobs.”

The court’s decision aligns with the New South Wales Government’s long-term container port strategy that using capacity at Port Botany first, followed by a new container terminal at Port Kembla, best supports the state’s trade needs.

This strategy delivers the most effective use of public infrastructure, while catering for population and economic growth in Sydney’s west and south-west.

Locating container ports near major population centres maximises supply chain efficiencies and minimises freight travel, with 80 per cent of containers arriving in New South Wales travelling less than 40km from Port Botany to reach customers.

Developing a container terminal at the Port of Newcastle, rather than using available container capacity at Port Botany, which is less than half full, would increase supply chain costs for Australian exporters, importers and consumers.

It would also add up to 5,400 truck movements a day to Newcastle’s roads and the M1 Pacific Motorway, worsening congestion and greenhouse gas emissions.

Lumsden Point port expansion project gets underway

The expansion of Lumsden Point in the Port of Port Hedland will deliver new multi-user facilities and berths, supporting the growth of renewable industries in Australia and overseas.

The expansion will increase the Port’s capacity to export battery metals such as lithium and copper concentrates, as well as importing renewable energy infrastructure such as wind turbines and blades.

The first stage of works on the project will construct two seawalls and a new causeway, which will connect the wharf to the proposed logistics hub.

MGN Civil was awarded the contract to complete the first of the seawalls, with a tender to soon be released for the delivery of the second.

The Federal Government is investing $565 million to expand the export and import capacity at the Port of Port Hedland, with the Western Australian Government contributing $96.5 million to the project.

Prime Minister, Anthony Albanese, said the Federal Government’s investment will help unlock trade and investment opportunities, local jobs and help drive Australia’s Net Zero future.

“Demand is growing locally and overseas for clean energy sources and our Government’s investment in the Lumsden Point expansion will help position Northern Australia to take advantage of the economic opportunities this demand presents,” Prime Minister Albanese said.

Federal Minister of Infrastructure, Transport, Regional Development and Local Government, Catherine King, said, “Investment in good infrastructure opens doors and opportunities for businesses and communities, and that’s exactly what this project is all about.

“By making use of local expertise and materials for the first seawall, this project will drive a real short-term employment and economic boost while delivering lasting infrastructure that will continue to benefit the region well into the future.”

Growing the capacity of Pilbara Ports has been identified by Infrastructure Australia as a national infrastructure priority.

Lumsden Point forms part of the Port of Port Hedland Development Plan Review, which was undertaken to maximise export capacity at the port.

Pilbara-based businesses will benefit from the first seawall contract, with 90 per cent of materials and suppliers to be sourced within the region, and additional sub-contracting and labour opportunities on offer. This will include partnerships with First Nations businesses and economic opportunities for communities across the north-west.

Western Australia Premier, Mark McGowan, said, “The Pilbara has been at the heart of our nation’s economic strength for decades, generating wealth for the entire country and supporting thousands of jobs across Western Australia.

“This port expansion will help to position Port Hedland at the forefront of the future green industries that will drive our State’s economy for decades to come.

“We’re investing in projects to diversify our economy and create local jobs right across the state.”

Western Australian Minister for Transport, Rita Saffioti, said, “The Pilbara is the engine room of both the Western Australian and Australian economies, and it’s so important we have both levels of government working together to expand our export and import capacity.

“We have a lot of natural advantages in Western Australia, but we must keep investing in the infrastructure that will drive our future growth, and ensure our State and country capitalises on the opportunities that come from the transition to renewables.”

Port of Newcastle trade strong in 2022, despite floods

Port of Newcastle’s 2022 trade figures have been released, revealing a strong diversified trade despite the impact of multiple flood events.

Port of Newcastle CEO, Craig Carmody, said the results are testament to the Port’s resilience during one of the wettest years in recent memory.

“In the first half of 2022 the Hunter experienced five flood events, which had implications across the supply chain,” Mr Carmody said.

“Unsurprisingly this contributed to an overall decrease in total import/export trade volumes and ship visits through the Port compared to 2021, handling 145 million tonnes of cargo and recording 4261 vessel movements in 2022.

“Through a collaborative response and making good use of the David Allan dredger and the Port’s new sweeper vessel Lydia, we were able to help reduce the impacts of the floods and return the channel to its designed depth, sooner and safely.”

Executive Manager of Business Development, Matthew Swan, said despite the challenges of 2022, the Port continued to see strong trade volumes across a number of key export commodities.

“Meals and grain exports, predominately to China, Japan, and Pakistan recorded a 56 per cent year on year increase, buoyed by a rise in the export of sorghum, barley and canola, with 479,000 tonnes shipped through the port in 2022,” Mr Swan said.

“Wheat continued to perform strongly, the 2.7 million tonnes exported being the second-highest year following 2021.

“Port of Newcastle continued to support major projects in the region with roll on roll off and project cargo including wind turbine components for the Rye Park Wind Farm, rail wagons for the Sydney Metro project as well as grain and coal haulers, equipment for the Snowy 2.0 Kurri Power Station, and mining equipment for customers in the Hunter Valley.”

The 2022 trade figures come at an exciting time for Port of Newcastle as it takes significant steps forward in its diversification.

Mr Carmody said, “2023 will be an important year for the Port and our commitment to build a container terminal in Newcastle.

“Once the valuation process for the Port of Newcastle Extinguishment of Liability Act is complete, we look forward to a future where businesses right across the Hunter, Western and Northern New South Wales can import and export their product through the Port more efficiently and cost effectively.

“We’re also taking further steps to secure jobs and the region’s future prosperity by developing a dedicated Clean Energy Precinct that will see the Hunter become a hub for the development, production and export of green energy like hydrogen.”

Mobilisation underway for Port of Burnie’s newest shiploader

TasRail’s mobilisation on its newest shiploader at the Port of Burnie is on track, with construction to begin in January 2023 when the components arrive.

The fabrication of the new infrastructure is well underway at COVA Haywards in Launceston and The Engineering Company at Somerset, supported by quality assurance from the Tasmanian Minerals and Energy Council.

Construction is set to commence after late January 2023, following the arrival of components.

TasRail’s new shiploader will load at twice the speed of the current facility and, when combined with the additional 15,000t storage capacity at the Port, this step-change in scale is attracting significant interest from the mining sector.

The project is supporting 140 local Tasmanian jobs in design and construction is on track for commissioning in mid-2023.

The Burnie Port Ship-loader is just one element of Tasmania’s $5.6 billion infrastructure program designed to support jobs, and build safer and more connected communities.

The increased loading speed and capacity of the new facility and its seamless connection to TasRail’s freight rail network has already created interest in the mining and mineral processing industries.

The largest customer of the facility, Tas Mines, has signed a Memorandum of Understanding with TasRail to undertake a joint feasibility study with TasRail to shift its freight task to the Port from road to rail.

Tas Mines shipped 260,000t of magnetite from the mine to the Port in 2021.

With the Australian Government’s commitment to an $18 million bulk minerals loading hub on TasRail’s Melba Line, the bulk minerals industry will be provided with new and exciting storage and logistics options – with rail connections being foremost among these.

While the feasibility is to be determined, the shift to rail would provide the potential to remove 6,500 truck movements each way annually on current volumes alone and provide a seamless rail to ship logistics train for the Hampshire-based Tas Mines.

This is one example of the potential of the new bulk minerals ship-loader and expanded storage facility at the Port of Burnie.

In the previous financial year, TasRail ship-loaded 650,000t of zinc, lead, and high-grade iron ore through the existing facility, which was just one ship-load short of a record.

The Budget and Forward Estimates includes $4.85 billion in investments by the General Government Sector, with a further $736.9 million in support investment by other Government businesses.

Reinforcing your supply chain

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How to “go local” the right way

By Poornima Ramaswamy, Chief Transformation Officer, Qlik

Manufacturing used to be simple. Everything, from the toothpaste on your bathroom sink to the crisp button-down shirt in your wardrobe, used to be made piece-by-piece in a local factory.

But businesses got savvier. Just-in-Time, an inventory management method, played a major role in this change, giving retailers a way to reduce their stockpile of raw materials down to strictly what they needed, when they needed it. The goal was to time production rates and forecast demand so replenishment orders can be made just in time to avoid a stockout.

This revolutionary system combined with the phenomenon of globalisation meant that manufacturers could have their components as fast as possible and as cheaply as possible.

Production became lean, profitable, and agile. And then, the pandemic hit.

The reshoring strategy

Factories dependent on the quick and cheap availability of raw materials made offshore were crippled by closed national borders, shuttered factories and grounded freights. Globally distributed supply chains faltered.

Jim Farley, the chief executive of Ford Motor, which has long embraced lean manufacturing, captured the mood when he announced to stock analysts in April 2021: “The semiconductor shortage and the impact to production will get worse before it gets better”.

With predictions that constant delays and shortages associated with offshore suppliers are here to stay, businesses started to ask: is going local the way forward?

Expanding local facilities or establishing new ones could theoretically offer less risk exposure. It could also lower transportation costs and reduce tariffs and taxes costs. Most importantly, it offers more control over operations and has a positive impact on the environment. It’s no surprise then that 75% of brands surveyed in 2020 were planning some sort of reshoring efforts.

But reshoring is complicated and expensive, and it may not be an easy switch for every business. So, how do you know which strategy is right for you?

Is going local right for your business?

The truth is, going local will not suit every business model. Domestic production is not what it once was. Factories that once produced toothpaste caps and shirt buttons may have been closed for decades because of offshore competition.

The advantage today, however, is that businesses can now tap into the power of data. They no longer have to passively respond to world event after they’ve happened. They can think ahead and close the gaps between data, insights and action so they’re ready for anything. By using cutting-edge analytics solutions and easy-to-comprehend visualisation, they can see exactly what lies ahead and make an informed decision on what their next steps should be.

In the question of whether to reshore or offshore, my suggestion is to use data to carefully assess where your business is today. Here are five questions to consider:

What challenge are you solving? And in what context? During the pandemic, many businesses were shocked to learn just how dependent they were on a fixed set of third-party suppliers. This lack of awareness is usually because due to an obscured view of the supply chain, from an individual component level to a holistic level.

Here’s where data integration helps. It gives you a 360-view of your supply chain works, accounting for production levels and supplier availability. That way, you’re never caught off-guard. You can assess performance across a variety of functions and uncover previously hidden trends that allow you to work out the answers to your most complex challenges.

Like, determining whether setting up alternative local supplier relationships for specific components could strengthen your supply chain against global disruptions.

And context is important. Augmented analytics and AI-powered automation will reveal demand forecasts that flag exactly where stockouts are or where inventory carrying costs might happen. So, you’ll be able to use “What if?” scenarios and plan for demand volatility and constraints around suppliers or materials.

What would success look like? Your definitions of success should not be broad or cookie-cutter. Evaluate strong, measurable targets in concrete terms by setting achievable figures for production timelines, inventory costs percentages or a production timeline.

Organisations need a dynamic relationship with information that reflects the current moment. Real-time data analytics provides this clarity, giving businesses an accurate picture of what’s happening at the moment and showing them how to respond. Using the latest tools available today, businesses can forecast changing trends and adapt to incoming disruption

What would the next steps look like? Once you’ve got a clear view of how your supply chain will work and adapt, find out if going local is workable at all. Even if you do want to go local for a particular part, there may be no vendors to supply.

Test the waters. Explore new supplier relationships in neighbouring countries and examine whether alternative components can achieve a similar desired effect. At each step, build a compelling, adaptable business case to convince potential new suppliers to alter their business plans to accommodate you.

How well did that work? Any decision you make about new local suppliers or exploration of alternate components must have embedded adaptability. Circumstances can change overnight for any business or market, so always watch not just your performance but the overall context of your sector on a local and global level.

Evaluate every stage, asking: Will this solve my problem in this current context? If the context has changed, what is the next step and how soon can I pursue it?

A data analytics tool can help you answer those questions definitively. It puts KPIs to every movement in your supply chain, like identifying track order accuracy, shipment delivery times, average fulfilment costs, and warehouse receiving turnaround time.

Proceed with clarity

As the disruption of the pandemic has gradually subsided, businesses have the choice of returning to traditional practices or building upon the momentum of the pragmatic solutions that served them well until their supply chains were upended.

As waters calm, there will be a temptation to revert to type, but with patience and adaptability, they can reinforce and revolutionise how they operate with the immense potential of data, which can lead the way.

KSB develops new wastewater impeller

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The D-max impeller can handle fluids containing solid substances and long fibres, coarse solids as well as entrapped gas or air. It is suitable for untreated wastewater, combined sewage, recirculated and heating sludge as well as activated, raw and digested sludge with a solids content of up to 8%. The impeller is also suitable for transporting fluids with a high viscosity.

At approximately 84%, the new impeller’s best efficiency can be compared with the performance of closed multi-channel impellers. The free passage is at least 76 mm.

KSB‘s hydraulic experts employed computational fluid dynamics (CFD) to obtain detailed knowledge about the complex flow processes inside the pumps via computer-aided simulations. In addition to the computer-aided development of impellers, KSB also conducted wastewater tests in the laboratory as well as intensive field tests around the world. The results of these tests were then incorporated into the development work.

Each customer receives an impeller trimmed to match the specified operating point. This is also common practice for multi-channel impellers.

The D-max impellers are used in KSB’s Sewatec and Amarex KRT pump type series. They are suitable for both 50 Hz and 60 Hz electric motors. The maximum head is approximately 90 metres and the maximum flow rate is approximately 2,800 cubic metres per hour. Depending on the composition of the wastewater, an operator can choose between the materials EN-GJS-400-15 and 1.4517 as well as EN-GJN-HB555.