25 May 2011
To Whom It May Concern,
SVITZER PORT TARIFF REVIEW – GEELONG
You will be aware of the great importance placed on OH&S Matters, and the need for
responsible companies involved in 24/7 operations to have in place an effective Fatigue
Management System
Over the past few months in Geelong we have found that the increased demands for timely
towage, coupled to the erratic vessel arrival & departure times caused by a variety of
circumstances outside our control have placed a severe strain on both our local resources and
our ability to accurately plan towage operations, whilst taking into account Fatigue Management
and OH&S considerations.
This issue was principally caused by two major factors – ‘false starts’ due to towage operations
being delayed at the start of a scheduled work period, and employees ‘running out of hours’ due
to delays at the end of their scheduled work period. Both factors being due to inaccurate and/or
greatly changed booked times for tugs
On occasions this led to serious delays in vessel arrival and departure times caused by crews
being on the necessary ‘fatigue breaks’ at the time of ‘last minute’ re-scheduled tug
requirements.
Discussions with the Harbour Master and other Industry Stakeholders in Geelong indicated a
later Job Notification time (the time at which the tug is booked) could be expected to bring
significant improvements to the ongoing problems of changes to tug requirement times - such
changes being the major factors in controlling Fatigue Management in our Geelong operation.
You may be aware our Geelong-based employees subsequently agreed to ignore current EBAs
and Port Operating Procedures to trial an 18:00 hrs Job Notification Time for 8 weeks.
This trial period for a changed Job Notification Time has now concluded and it has been proved
conclusively that the improvements were minimal. Records kept during the trial period show that
only on 4 occasions over the 136 tug orders, were changes made between the previous 16:30
time and the trialled 18:00 time. Of those occasions, only one made a difference to the ’fatigue
break’ issue.
In the meantime, we made every conceivable effort to ensure minimal delays were caused by
‘fatigue breaks’, and indeed it was very pleasing to hear the extremely complimentary remarks
from the Harbour Master regarding our performance during this period.
It will be appreciated, however, that this came at great cost – involving employing ‘scratch
crews’, and relocating employees from both Melbourne and Westernport operations, in some
cases relocating crews from Westernport for a single Geelong towage job.
This proved conclusively that with additional resources available on an ‘as required’ basis the
service level now required by customers, and the requirements of Fatigue issues can be jointly
met – but at a cost which is unsustainable without an increase in tariff.
SVITZER Australasia
Level 23, 201 Elizabeth Street
Sydney NSW 2000 Australia
PO Box 644
Bondi Junction NSW 1355 Australia
SVITZER Australia Pty Limited
ABN 86 000 045 009
To prevent vessel delays being caused by the necessity to closely manage fatigue issues within
our Geelong operation, in the erratic tug requirement environment which is Geelong, we
therefore find it necessary to increase the tariff by 8%. This increase will allow the utilisation of
additional staff, thereby addressing the above issues and ensuring less disruption to Geelong
stakeholders.
For your guidance, the following shows the cost differential which will result:
Vessel GT
Up to 10,000 tonnes
10,001 to 20,000 tonnes
20,001 to 30,000 tonnes
30,001 to 40,000 tonnes
40,001 to 50,000 tonnes
50,001 to 60,000 tonnes
60,001 to 70,000 tonnes
70,001 to 80,000 tonnes
80,001 tonnes and over
Current
Price
excl GST
3,930.00
4,230.00
4,380.00
4,560.00
4,690.00
4,970.00
5,210.00
5,450.00
5,720.00
New
Price
excl GST
4,240.00
4,570.00
4,730.00
4,920.00
5,070.00
5,370.00
5,630.00
5,890.00
6,180.00
In accordance with our Agreement, this will be effective from 30 days from the date of this
advice.
In the meantime, however, we undertake to increase resources to maintain the clearly increased
service level, and ensure significantly fewer delays in towage operations due to fatigue issues.
It is necessary to stress this increase is due solely to the major changes being implemented to
improve operational and service levels in Geelong identified in the recent ‘job notification’ trial in
Geelong. This increase is separate to the regular annual tariff review process which is scheduled
for later in the year in accordance with our respective agreements, and does not preclude the
need for the regular annual tariff review, or any adjustments which may occur as a result of that
review.
In addition, recent changes to Australian consumer law means SVITZER needs to amend the
United Kingdom Standard Conditions for Towage and Other Services (Revised 1974) (UKSTC).
The new version of UKSTC forms a key part of our Terms and Conditions, with the main
changes between the last version (UKSTC amended 2008) and the new version (UKSTC
amended 2011) as follows:
-
References to the Trade Practices Act have been changed to the new Competition and
Consumer Act 2010.
The application has been extended to all services regardless of whether the services are
provided in conjunction with towage services.
Please note this new version of UKSTC is to prevail for all services performed by SVITZER from
the 01 June 2011.
SVITZER Australasia
Level 23, 201 Elizabeth Street
Sydney NSW 2000 Australia
PO Box 644
Bondi Junction NSW 1355 Australia
SVITZER Australia Pty Limited
ABN 86 000 045 009
We have attached copies of the updated tariff schedule, including the standard Terms and
Conditions and the new version of the UKSTC. We are continually reviewing our Terms and
Conditions with a view to meet updated statutory requirements, promote operational efficiency
and standardise across the ports in which we operate.
We thank you for your custom and look forward to continuing to assist your vessels safely and
efficiently.
Kind Regards
Roy Lindsay
Port Manager – Victoria
SVITZER Australasia
Level 23, 201 Elizabeth Street
Sydney NSW 2000 Australia
PO Box 644
Bondi Junction NSW 1355 Australia
SVITZER Australia Pty Limited
ABN 86 000 045 009