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Inefficiencies produce rising congestion in Australia and New Zealand

Written on:February 13, 2012
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Congestion, more than strikes and slowdowns, are the main cause of low dockside productivity in Australia and New Zealand, reports the UK’s Port Strategy journal.

While labour strife contributes, the big problems are the repositioning containers, restowing delays, which in turn cause ship bunching while waiting for berths, said the report citing government data.

Industrial unrest has been a major worry for the ports industry in both Australia and New Zealand, but a bigger concern is a set of other causes of congestion at its two largest container ports.

Shipping Australia, representing major carriers, said that in the seven-week period to late October, 12 carriers lost A$12.12 million (US$12.07 million) in more than 84 voyages in additional fuel costs as a result of delays in waiting for berths at Sydney’s Port Botany – or speeding to be on time.

Shipping Australia’s chief Llew Russell said congestion puts “significant costs” on importers and exporters, including the need for carriers to omit both Australian and overseas port calls to recover the sailing schedule.

Congestion is also a serious issue at Melbourne, where shipping line ANL went public with its view, saying there was a “crisis in port capacity”.

Said ANL managing director John Lines: “Unlike the ports of Sydney and Brisbane, which have new facilities under construction, Melbourne has yet to even announce any new short-term capacity increase or development. Let’s be very clear. In our view Swanson Dock is full.”

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