AIMPE calls for new approach to cabotage

(updated 31 05 17)

The AIMPE submission in response to the Federal Government's Coastal Shipping Reform Discussion Paper has called for a new approach to cabotage regulation for the Australian coastal trades.

One key shortfall of the current regulatory regime is that the Shipping Registration Act requires all vessels owned by an Australian citizen or an Australian company to be registered in Australia. If ownership of a ship is transferred to an overseas owned entity then the obligation to register is avoided.

By contrast other forms of transport which operate in Australia are required by Australian law to be registered in Australia. All aircraft that operate in Australia are required to be registered in Australia and comply with all Australian laws. All road vehicles that operate on public roads in Australia are required to be registered in Australia and comply with all Australian laws.

AIMPE has called for the Shipping Registration Act to be amended to require that all vessels operating in Australian waters [the waters of Australia’s Exclusive Economic Zone] should be required to be registered in Australia and comply with all Australian laws. This would provide a solid basis for the Australian maritime industry.

AIMPE believes that Government policy formulation in relation to the Shipping industry has suffered from being overshadowed by the big spending portfolios of roads and railways. In order to address this problem, AIMPE recommends the creation of new Minister for Shipping with a brief not only to regulate the maritime industry in Australia but also to promote Australian flag shipping and the Australian maritime industry generally.

Lloyd's List Australia carried the following report on the AIMPE submission:

AIMPE's full submission can be found here:

AIMPE_response_to_Coastal_Shipping_Reform_Discussion_Paper_31_05_17.pdf AIMPE_response_to_Coastal_Shipping_Reform_Discussion_Paper_31_05_17.pdf (1.01 MB Wed May 31 11:30:11 2017)

This must stop - 10,000 Voyages by Temporary Licence Ships

(uploaded 12 05 17)

The latest information available from the Department of Infrastructure and Regional Development indicates that 10,000 voyages have now been undertaken by foreign flag ships with foreign crews between Australian ports from July 2012 to April 2017. This must stop.

One leading example is the CSL group’s Bahamas flag Stadacona which has carried out 181 coastal voyages under Temporary Licences between July 2012 and April 2017. The flag of convenience ship Stadacona has carried 3,174,539 tonnes of Australian coastal cargo – mainly cement and clinker – during this time. Stadacona arriving into Sydney 2017The crew is reported to be primarily Ukrainian seafarers.

This is clearly a permanent business model for the cement industry. These cargoes should be carried on an Australian flag ship.

The Stadacona was previously called the CSL Yarra and before that was part of the ANL fleet and registered as the River Yarra.

Full details of the voyages carried out by the Stadacona can be read in the following spreadsheet:

Temporary_Licences_for_Stadacona_July_2012_to_April_2017.xlsx Temporary_Licences_for_Stadacona_July_2012_to_April_2017.xlsx (25.90 KB Fri May 12 17:28:29 2017)

Another example is the ship ICS Silver Lining operated by Inco Ships. It has completed at least 271 voyages under Temporary Licences since commencing Australian coastal operations in 2013.

ICS Silver Lining is registered in Antigua & Barbuda (a flag of convenience) and reportedly crewed mainly by Filipino seafarers.ICS Silver Lining Newcastle, NSW 2013 ICS Silver Lining has carried approximately 1.1 Million tonnes of various dry bulk cargoes such as coke, coal, fertiliser, iron, lead and zinc between the industrial ports of Whyalla, Port Pirie, Bell Bay, Hobart, Port Kembla and Newcastle.

Details of the voyages carried out by the ICS Silver Lining

can be found in the following spreadsheet:

Temporary_Licence_ICS_Silver_Lining_2012_to_2017.xlsx Temporary_Licence_ICS_Silver_Lining_2012_to_2017.xlsx (33.75 KB Fri May 12 17:20:35 2017)

Another ship utilised by the CSL group, the Alcem Lugait, is the most prolific vessel taking advantage of the Temporary Licence provisions of the Coastal Trading Act 2012. The Alcem Lugait, which is owned by KGJ Cement Singapore PTE LTD, has carried out over 290 voyages under Temporary Licences since 2012. Alcem Lugait departing Sydney 2016During this period it has reported carrying 3,385,567 tonnes of cargo between Australian ports.

Its cargoes are cement and fly-ash and it generally operates on Australia’s east coast – mostly out of Gladstone and delivering mainly to Sydney, Newcastle, Brisbane, Townsville and Melbourne.

The Alcem Lugait is registered in Singapore and so the earning of the ship enjoy the zero income tax applied to all maritime earnings by the Government of Singapore.

Full details of the voyages carried out by the Alcem Lugait can be read in the following spreadsheet:

Temporary_Licence_Alcem_Lugait_2012_to_2017.xlsx Temporary_Licence_Alcem_Lugait_2012_to_2017.xlsx (34.43 KB Fri May 12 17:48:33 2017)

Government Discussion Paper released (uploaded 22 03 17)

The Federal Government Minister responsible for Shipping policy has released a new Discussion Paper on Shipping Policy.

Members can access the paper here:

Coastal_Shipping_Reforms_Discussion_Paper.pdf Coastal_Shipping_Reforms_Discussion_Paper.pdf (692.73 KB Wed Mar 22 12:37:59 2017)

Although the title refers to "reforms" there is nothing in the paper which will increase employment

opportunies for Australian Marine Engineer Officers - or Australian Deck Officers or any other

Australian seafarers.

This appears to be another plan to make it easier for foreign ship owners and operators to gain

an even greater slice of the Australian coastal trading market.

Searoad Mersey II arrives

(posted 11th Dec 2016)

There is a new ship on the Australian coast.