Jennifer Hall, Senior Logistics Analyst 29 August 2013 Contents Background Truck Productivity Indicators Purpose of Study Key Findings of Data Analysis Next Steps Background Trucking vital to Fremantle container supply chain • Currently handles approx 85% of total Port volume • Even if rail reaches 30% road volumes will increase • Both truck numbers and efficiency are key issues Truck Survey measures of productivity have shown a stagnation since 2006 and decline over last 2 years Explanations for this based largely on speculation and anecdotal evidence A number of other issues need attention: • VBS “Mad minute” • Large number of carriers • Orderly transition to 24x7 Truck Loading (Utilisation) TEU per loaded truck 1.75 1.24 2002 1.28 2003 1.30 2004 1.89 1.86 1.78 1.76 1.75 TEU per truck (incl Unladen) 1.34 2005 1.42 2006 1.88 1.35 2007 1.90 1.87 1.33 2008 1.36 2009 1.86 1.36 2010 1.85 1.33 2011 1.28 2012 Empty Running 60% 31 50% Port Beach Road 27 Tydeman Road 27 %age unladen 23 20 20 32 25 40% 36 27 28 30% 673 499 398 409 410 397 554 536 585 20% 471 370 10% 0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Truck Number Forecasts for Fremantle Ports 600 1400 1200 500 (ii) Current truck productivity, rail share increased 1000 400 800 300 600 200 Current Level 400 100 200 0 0 2012 2015 2020 2025 Trade (TEU's '000s) Number of Trucks per hour(0600hrs - 1700hrs) (i) Current truck productivity, rail as at present (iii) Improve truck productivity, rail targets met (iv) As for (iii) except 15% of trucks move between 1800 and 0500 TEU's (000's) excl transshipments Purpose of Study Develop reliable data on the container trucking industry Understand what is driving carrier decisions Identify factors impacting on productivity Understand impacts of Terminal and Empty Park booking systems Engage industry in defining issues and identify solutions Assess feasibility of proposed improvement initiatives Develop recommendation and strategy for the future Consideration must be given to impacts on rail of improved trucking efficiency and productivity Number of Transport Carriers 140 120 122 104 104 DPW Patrick 91 96 Container Parks DPW 100 121 106 80 60 40 20 0 CMS August 2011 Patrick October 2012 DPW Patrick March 2013 Patrick 5 9 69 Container Parks 7 6 DPW 21 17 79 Patrick 43 DPW 18 88 Patrick 33 DPW 8 125 unique carriers 139 unique carriers 142 unique carriers Concentration of Carriers The top 10 carriers handle 50% of the full TEU task The top 31 handle 75% of the full TEU task, as illustrated 111 carriers do the remaining 25% Fremantle carrier numbers high cf other Ports Group A Group B Group D Group C 1,600 80% 1,400 70% 1,200 60% 1,000 Full TEU per week Cumulative Percentage 50% 800 40% 600 30% 400 20% 200 10% - 0% Unladen Trucks – Tydeman Rd 100% Container trucks per hour 150 100 60% 40% 50 20% 0% 0 0500 Container trucks per hour 80% Outbound unladen Outbound Laden %age unladen 0600 0700 0800 0900 1000 1100 1200 1300 1400 1500 Hour commencing 1600 1700 1800 1900 2000 2100 2200 150 100% Inbound Unladen Inbound Laden 100 80% 60% 40% %age unladen 50 20% 0% 0 0500 0600 0700 0800 0900 1000 1100 1200 1300 1400 1500 Hour commencing 1600 1700 1800 1900 2000 2100 2200 Import Export Balance Significant imbalance in im/ex volume in WA: 50A% loaded imports, 25% loaded exports TEUs per week Export Full Import Full 0 200 400 600 800 1,000 Time of Day Accessing Terminals (TEUs per Hour, DPW & Patrick Combined) 200 150 2011 100 50 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 200 150 2012 100 50 200 150 2013 100 50 - North Fremantle Total Off-Port Two Way Loading - Patrick Laden 2-way Unladen 29% 36% 51% Laden 1-way 58% 60% 58% 51% 36% 29% 29% 60% 29% 13% 13% 13% 13% 11% 11% Inbound Outbound Inbound Outbound Inbound Outbound CMS August 2011 October 2012 March 2013 Two Way Loading - DPW Laden 2-way Laden 1-way 35% Unladen 40% 53% 57% 57% 53% 40% 35% 50% 42% 42% 50% 8% 8% 7% 7% 8% 8% Inbound Outbound Inbound Outbound Inbound Outbound CMS August 2011 October 2012 March 2013 Two Way Loading – Port Precinct Trucks per 18hr day Unladen Laden 1-way Laden 2-way Theoretical two way maximum capacity of 66% (when current two way loading is combined with laden inbound) However, balance of imports/exports per carrier, operating hours of ECPs, and other factors may restrict this 27% 34% 34% 27% 39% 39% Inbound Outbound August 2012 Improved TTT at Terminals Significant reductions in average TTT since 2010 Greater ability for operators to move through facilities quickly Possible efficiencies gained from one-way movements rather than coordinating Container Terminal & Empty Container Park bookings Combined Quarterly Average Stevedoring Truck Turn Time (mins) Average TTT (mins) 38 36 34 32 30 28 26 24 22 20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 Q2 2011 Q3 2011 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2011 2012 2012 2012 2012 2013 2013 Impact of Increase in 40’ Containers Percentage of total 40% Percentage of Trucks carrying various container configurations 30% 20% 10% 0% Unladen 1 x 20' 2 x 20' 3 x 20' 1 x 40' 1 x 20' & 1 x 40' 2006 26% 17% 15% 2% 36% 4% 2007 28% 16% 14% 4% 33% 4% 2008 30% 15% 12% 3% 36% 4% 2009 27% 17% 12% 3% 37% 4% 2010 28% 15% 12% 3% 37% 5% 2011 29% 16% 10% 2% 38% 4% 2012 31% 17% 9% 2% 38% 4% Issues and possible solutions Influences on trucking productivity Mismatch of hours • Container Parks • Shippers • Limited staging capacity Possible responses • Extend ECP hours • Promote extended hours solutions with Industry • More on and off-port staging facilities VBS slot drop “Mad minute” Modify VBS structure to enable more efficient truck scheduling Importance of cycle times • Reduced TTT times and variability • Incentives to maximise truck loads Limited 2-way running • Import/export imbalance a major limiting factor • Incentives to maximise truck loads Dual booking systems • Investigate possible integration Growth of 40’ boxes •Consider incentives to maximise truck loads • Higher capacity vehicles Large number of carriers •Consider changes to VBS if public benefit can be confirmed Questions? Doug Brindal Jennifer Hall Manager Logistics P: 9430 3515 E: doug.brindal@fremantleports.com.au Senior Logistics Analyst P: 9432 3662 E: jennifer.hall@fremantleports.com.au