REGIONAL REPORTAUSTRALASIA
Hong Kong and Australia, said the company has secured a niche role in three big projects that promise continuing work in 2017. “We are involved in the Amrun (South of
Embley) project for Rio Tinto – a greenfield bauxite mine and associated processing and port facilities in the Weipa/Aurukun region of Western Cape York in Far North Queensland. This is a AUD1.9 billion (USD1.4 billion) project to expand output from one of the world’s premier bauxite deposits. “The planned initial output is 22.8million
tonnes a year, replacing production from the depleting East Weipa mine and increasing annual bauxite exports from Cape York by around 10 million tonnes. “Production and shipping commence in
the first half of 2019, ramping up to full production by the end of the year. IEG is shipping some heavy lift crawler cranes in the first quarter of 2017 as our first shipments into Weipa to assist getting the project under way.”
Giant coal port Nastevski said a second mining operation is the Abbott Point Coal Terminal expansion for the Adani Group, near Bowen in north Queensland, which will make it one of the world’s largest coal ports. “This is one of Australia’s biggest mining
projects and consists of six open-cut pits and up to five underground mines, and will supply Indian power plants with enough coal to generate electricity for up to 100million people. “IEG is shipping equipment ex Europe as
out-of-gauge (OOG) flatracks for the coal loader expansion throughout 2017. We will also be bringing in rollers and conveyor systems that will be brought in as breakbulk ex Asia.” Nastevski said a third IEG project in
2017 will involve the Yamba Bridge in New South Wales, which will require the shipping of large crawler cranes and piles. Rene Stuckert, of Australian Independent
Shipbrokers, which represents Spliethoff among others shipping lines, said the shipping downturn has left most industry players with no choice but to consolidate. “The multipurpose shipping market has
seen a dramatic reduction in the amount of cargo moving to Australia due to the completion of most mining and LNG development projects. We have experienced a once-in-a-lifetime boom. “The market into Australia remains
over-serviced with too many shipowners committing sailings to Australia with little inducement. He said shippers are increasingly cautious
102 January/February 2017
A shipment being offloaded for the Brisbane Ferry terminal project.
about who they book with, and agreeing “realistic freight levels to ensure voyages are performed on time and with proper attention to cargo care”. Stuckert expected the reduced volumes
to last for another two-to-three years. “The only good prospects on the horizon are rail and wind farm projects. Longer-term, we believe the multipurpose market will benefit from increased scrapping of vessels, which will include relatively young vessels. “Many owners are currently running vessels on very tight budgets. Maintenance
The multipurpose shipping market has seen a dramatic reduction in the amount of cargo moving to Australia due to the completion of most mining and
LNG projects. – Rene Stuckert, Australian Independent Shipbrokers
and crewing are large-ticket items which, if neglected, hugely impact the lifespan of vessels. Before the market returns to a more balanced supply and demand situation, it is likely there will be some consolidation of shipping fleets and some players may exit the sector completely.” Across the Tasman Sea in New Zealand, there are challenges but also some bright spots. Alister Wishart of freight forwarder Oceanbridge said the New Zealand scene is typified by ro-ro liner services complemented by conventional tonnage, but only on specific trade lanes. “In the not-too-distant past there were
semi-regular liner services run by conventional vessels, typically reefer – for instance Kyokuyo and AAL. Also there were more one-off export charters for meat and kiwi fruit that have slowly all been replaced by containerised liner services.” This will be further impacted if in 2017
the conventional reefer service operated for kiwi fruit to Europe is replaced by smaller containerised vessels. “The combined effect of all this is that cargoes requiring
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Brisbane Wharf
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