SCT Xpress - SCT Logistics
Transcription
SCT Xpress - SCT Logistics
ISSUE 6 WINTER 2015 SCT opens up direct line to Port of Melbourne For SCT Port Logistics Manager, Robert Comley, the opportunity to deliver product from the Wimmera region straight to the Port of Melbourne, was a long time coming but having now been achieved, will make the customer delivery process much more efficient. As Robert explained to SCT XPRESS - “Wimmera Container Line has been running container trains into CRT Altona for three years. We’ve then needed trucks to finalise the delivery to those containers to the Port. There are direct rail avenues into the port precinct, but due to existing contractual arrangements we couldn’t have access to them. By coming to terms with DP World, this will allow us to deliver our trains with customer containers directly to the wharf.” DP World is a stevedoring company which primarily loads and unloads containers to and from ships. For Wimmera Container Line, they will unload containers from trains and ensure their delivery into their facility as well as the Patrick Terminal. “DP World is the fourth largest stevedore in the world. We now have direct Global connectivity for our customers in the Wimmera region.” Robert said this new development cuts down one of the biggest risks in getting a container into a container terminal; the things which you don’t directly control. “Delivering our train directly into the terminal eliminates a number of risks. “There are a number of factors that can affect terminal access, which can include road delays on the way to the terminal, equipment breakdowns, inability to get a timeslot or even a Super B-double reversing onto a truck grid. Some guys do it a lot better than others, but it takes time and can disrupt traffic flows in the container terminal, delaying the whole process and causing additional delays down the chain. So our aim is to eliminate as much process risk as possible. By having a direct to port rail solution, we are achieving that objective for our customers.” Robert said the company was looking at delivering around 15,000 containers a year, and while Melbourne was the first port covered by the DP World agreement, the stevedore is a national company. “There are substantial commercial benefits to our business, not only for Wimmera customers, but for SCT as a whole. DP World sees this as a partnership and as a result there may be other opportunities for us to consider nationally.” The first direct Wimmera Container Line service arrived at DP World, Melbourne on July 1st. www.sctlogistics.com.au SCT WA picks up new business with Fremantle Port Rail Service SCT Logistics has successfully negotiated and taken over the operation of the Fremantle to Forrestfield Port Rail Service from Monday, 6th July 2015, with the provision of up to 14 return rail services weekly to Intermodal Link Services. Intermodal Link Services is part of Intermodal Group, and is the operator of the North Quay Rail Terminal, the Fremantle Port Train and their own Forrestfield Inland Container Hub. SCT Logistics’ WA State Manager Brad Moore said “SCT is delighted to have won this business and partner with a reputable and established Company in ILS, whose origins that date back to the 1930’s are not too dissimilar to that of the SCT Group”. Brad said “ILS’s customers’ containers come into Fremantle Port via international import and coastal shipping, where they are handled by stevedores and transferred to Intermodal Link’s North Quay Rail Terminal Operation. From here, SCT will transport the containers to ILS’s inland container hub – considered to be the largest in Western Australia – located in Forrestfield”. According to Brad, ILS commenced the operation of a port train to provide the most efficient, environmentally and community-friendly supply chain solution to its customer base. “In fact,” said Brad, “ILS have recently announced the movement of their 500,000th TEU on rail, representing the removal of in excess of 160,000 vehicle Photos courtesy Terry Moore From left to right: Ben Higgins - CEO, Intermodal Group, Darrin Smith - General Manager, Intermodal Group, Jim Stevenson - Chairman, Intermodal Group, Brad Moore - State Manager WA, SCT Logistics and Eddie Davies - WA Rail & Intermodal Manager, SCT Logistics. movements between Fremantle and Forrestfield which is equivalent to approx approxiimately 6,600 km of vehicular traffic. ILS customers’ containers carry a wide variety of goods including bulky goods, food and beverage products, and construction equipment. From an export perspective, CBH’s grain operations are strategically placed to take advantage of this rail offering, along with other agricul- Ron Eustace tural and primary production exporters. Brad said the distance between the two locations on rail was around 60 kilometres. “The trains will initially carry 90 TEU (twenty foot equivalent containers) each way, giving the train an overall length in excess of 600 metres, twice a day. So that’s a daily total of 180 TEU inbound and 180 export TEU”. Brad added, “the commencement of this operation has also created an opportunity for SCT’s experienced staff, with SCT WA’s Rail and Intermodal Manager Eddie Davies assuming responsibility for the operation. “We want to thank the Managing Director of Intermodal Link Services, Jim Stevenson; CEO Ben Higgins and the GM for Intermodal Group, Darrin Smith for entrusting SCT with the business and we look forward to strengthening the relationship into the future.” New Kenworths for Sugar Division means greater reliability SCT’s NSW Logistics Manager Bob Briggs had a smile from ear to ear when the newest Kenworth prime movers were delivered in readiness for the 2015 sugar cartage season. Bob said the Sugar Division needed to increase its fleet size so they piggybacked on the capital investment for the acquisition of new forks and trucks for other areas of the company. “These prime-movers are specially www.sctlogistics.com.au built Kenworth T409’s and they operate from the Queensland border to as far south as Grafton in northern NSW,” explained Bob. “We’ve had the Sugar Co-op contract for more than 10 years now, and when the season is in full swing these trucks are carting cane to the mills 24 hours a day. So they have to be reliable and thank goodness we have never had any great problems with the fleet we have been using. Changing to “automatic” gear boxes is another way SCT is addressing fatigue as this is an important issue in our industry. Message from our Managing Director Well, it’s hard to believe that we’re half way through 2015. As expected, it’s been a fairly challenging six months with rail volumes on the East West corridor remaining challenged on the back of a subdued economy in WA and decreases in shipping rates, as the Government encourages more foreign shipping companies to compete in our domestic market. There are a number of positive outcomes for the business over the past few months, some of which are reported in this newsletter. We’re now 12 months into our SAP implementation and it’s pleasing to see the progress that we’ve made. I think we all shared the frustration of inflicting such a significant change on our business. Unfortunately, moving forward isn’t always easy and the right decisions are often the difficult ones. Our port related rail business continues to grow, with the formation SCT executives experience cold night for charity Brave members of SCT put up their hands this year to participate in “Vinnie’s CEO Sleepout”. Besides Glenn Smith, there was Pat Kerin, Noel Ramsey, Peter Lyngberg and Michael Sommers all representing SCT as they dossed down at Etihad Stadium at the start of winter. Last year, 1,237 CEOs around Australia raised $6.2 million for such a worthwhile cause. That money provided 1,197,633 meals, 365,164 warm beds, and assisted 1,161,239 people. This year Victorian CEOs raised more than $989,000 for charity which is a great result and the money raised will assist thousands of less fortunate people in the community. of our partnership with DP World which will now allow our Horsham rail services direct passage into the port of Melbourne. Congratulations to Allister Boyce and Robert Comley for all their efforts in facilitating this partnership. We also see the commencement of rail services into the port of Fremantle with SCT providing hook and pull services for the Intermodal Group in WA. Well done to Brad Moore and Andrew Williams for consummating this partnership. We welcome the opportunity provided to us in servicing the Linehaul requirements for the Foster’s Group to Western Australia. As a family company we pride ourselves on the longevity of our customer and supplier partnerships, so it’s particularly satisfying to be awarded this business once again. Well done to Glen, Pat and all involved in the process. The SCT Group has recently secured 85 million, the largest funding piece by a private company through the Australian bond d market. In the the he past pas astt 12 months we’ve successfully transferred most of our debt structure away from the major banking institutions, with a view to allowing us to capitalise on opportunities and expand our business in key areas such as Wodonga and the Melbourne to Brisbane rail corridor. Congratulations to Michael Fiteni in anchoring this significant achievement. With much hard work and repositioning of the SCT business having occurred over recent years, we look forward to capitalising on the opportunities that lie ahead. Geoff Smith Managing Director Bonds for Financial Flexibility The SCT Group has recently accomplished Australia’s largest private unrated bond release, closing at $85 million. The offer was oversubscribed and done in conjunction with FIIG Securities acting as the sole originator for the dual-tenor issue. The SCT business is extremely capital intensive requiring sizable investment in rail infrastructure, rail and road equipment and expansive terminals. Historically these assets have been principally funded by the major Australian banks. The bond release has provided SCT the benefit of a new and more flexible capital market which is a very exciting initiative for the business and unique for a private company. The money procured by the bonds will be applied to other existing bank debt which will enhance the overall capital structure as well as supporting future growth. The success of the bond release denotes a vote of confidence in the company from a new group of investors. It is pleasing that they have backed its vision and SCT is looking forward to working with them in the coming years. This release signifies the progressive and innovative nature of the business. The SCT Board compliments its CFO, Michael Fiteni on engineering the largest private company equity raising in Australia to date. New refrigerated containers give SCT unique edge According to SCT’s National Refrigeration Manager, Peter Lyngberg, the new refrigeration containers SCT has purchased will give the company an edge when it comes to moving merchandise across the country. “We have 25 containers, ten of which have up and down lift bars, and 15 containers with the traditional carry-in and carry-out bars,” explained Peter. “They are all 48ft long and are designed for our well-wagons. They sit in the well-wagons and are also designed to travel on the 5-Packs. The issue with the 5-Packs has been that the fridge hangs over the 48ft, so the 5-Packs have been specifically designed to take these 48’ containers with the added length for the fridge.” He said 25 of them will travel back and forth to Perth weekly, carrying product for some of SCT’s major customers, predominantly in the lighter freight sector. Peter said that included things like frozen breads, chocolate and confectionery amongst others. He said they were the only 48ft reefers travelling around Australia and very few travelling on rail. While these units are brand new, they will replace some of the current older The new 48ft refrigeration container Inside an up and down lift barred unit 46ft containers. “They effectively give us an extra two spaces of revenue in each container for no extra cost,” commented Peter, “so it’s a dual program of additional capacity and a replacement program. It is not a standard shipping container, nor a standard rail container. It has been designed specifically around our rolling stock.” At the time “SCT Xpress” spoke to Peter, the units were being fitted with fridges by ThermoKing. “These ThermoKing fridges are unique, a brand new fuel efficient model, and specifically-modified for us,” added Peter. “We built a prototype last year and we have run that prototype successfully for 12 months.” Container Terminal opened at Penfield After months of organisation, hard work and minor set-backs SCT’s newest jewel in the crown – the Container Terminal at Penfield – was opened and is ready for business. The official party consisted of Mr Bryan Nye CEO of Australasian Railway Association, Mr Glenn Docherty Mayor of the City of Playford and Managing Director Geoff Smith from SCT. Tim Timmermans, Blanalko’s Project Manager for the project, said the actual Left to right: Mr Bryan - Nye CEO of the Australasian Railway Association, the Mayor of the City of Playford Mr Glenn Docherty and Geoff Smith - SCT Managing Director. construction took around nine months and was a major SCT investment in the area allowing improvements and expansion of available services for our customers. It has also resulted so far in the creation of about 70 new jobs within the precinct, with a majority of those being employed from surrounding suburbs. Tim said that throughout the project the strong support from the City of Playford, as well as a number of other SA Government departments has assisted SCT greatly in the delivery of this project. This was the fourth multi modal estate development undertaken by the SCT Property Group, and the site occupies a major growth corridor of Adelaide. SAP receives positive response after 12 months of hard work Anybody who has been involved with an implementation of SAP knows that it isn’t a walk in the park, and that it involves a lot of work, and dedication from all areas of a business. SCT’s implementation is now more than 12 months and according to the company’s CFO Michael Fiteni, a lot of the hard yards have been surpassed, and SCT is now talking to customers on ways to integrate the system into their businesses. “Generally the reaction has been very positive,” explained Michael, “Customers understand that getting SAP in initially and getting it bedded-down, comes with a lot of challenges. However, post that they realise benefits can be achieved through the integration and better visibility. This is especially so as a number of our large customers use SAP themselves. Michael readily admits that SAP has been challenging for some employees and others have taken to it like a duck to water. “The pleasing aspect is that they’re now starting to communicate using the SAP terminology and thought process, but in saying that, there is still some work we can do to make that experience a lot better for them. “Now, we want to go on the path of process improvement and simplification so we are undertaking a few pieces of work around this. At times people tend to forget the benefits. You always remember the hard bits, and you have to take stock of those to realise how far along we’ve actually come.” SCT CEO, Glenn Smith, has also been intimately involved in the SAP project and told the “SCT XPRESS” that the project was: “Ever evolving for us, but the company is starting to see real benefits from the system now. After all the hard work, we are starting to get some very good information. We found that difficult to begin with, but we are now generating the reports and information to improve the business. We are also starting to engage with our customer base, to share this information and bring real benefits to their businesses. As Michael has said, it has been very encouraging to see how our people have applied themselves to understanding the system which is no mean feat.” SCT shows Mars employees how it helps move their products Sean’s experience with SAP was a big advantage It was an invitation-only event when SCT was asked by Mars if they were interested in manning a stand at the Mars Petcare Supplier Trade Show held in Wodonga. Glen O’Brien, National Manager - Major Accounts who’s based at Altona, said the show is held each year and a number of key suppliers are invited to participate at an in-house trade show at the Mars Head Office. “It’s not open to the public and is only for Mars Group personnel,” said Glen. “All their suppliers have their own stand and obviously talk about what they do and can do for the Mars Group. “It gives us a chance to promote our brand and interact with Mars personnel across a range of different levels. They also have a black tie Supplier Awards night during this event, which culminates in the Supplier of the Year Award. Besides myself we also had Pat Kerin - General Manager Business Development there, and it was a great opportunity for us as Sean Atchinson, new SCT Chief Information Officer, has only been with the company since March but is already making an impact assisting the company to settle down the SAP system as it rolls out. He joined with extensive SAP experience, working with the system both here and overseas. “He brings a good understanding of the solution,” said Michael Fiteni. “Sean is a ‘hands-on’ pragmatic person who shares his knowledge with the rest of the SCT members.” He’s somewhat of a fitness fanatic and rides or runs to work each day. According to Michael, Sean has been able to mediate well between the technology solution and the business needs.” a company to spell-out what SCT does for them.” Glen said they supplied information on the SCT network, which not only carries product out of Wodonga but also from the other Mars manufacturing sites around Australia. “It certainly gave them a broad overview and even down to the people on the production lines, who are interested in how we move what they produce. The Mars contract has been with the company for nearly 40 years and is one of SCT’s flagship customers.” www.sctlogistics.com.au New Sydney premises doubles SCT’s distribution facility Mick Sommers - National Fleet Manager SCT united in getting the best forklift deal for their drivers As of July this year, SCT depots throughout Australia will be serviced by United Forklift & Access Solutions, and according to National Fleet Manager Mick Sommers, there are great expectations that there will be an important lift in problem solving through partnering with the new supplier. “While United’s head office is in Perth, they have branches in every state except Adelaide,” explained Mick. “They have been a supplier to SCT in Perth for the past 18 years, while on the eastern seaboard we have had a range of other suppliers over the years. “United will now supply and service all forks and associated equipment, which amounts to around 150 units throughout our network of depots and warehouses.” Mick said five companies were invited to tender after he and the team had researched those who could supply what SCT required now and into the future. “We came up with a list we had been impressed with, they submitted their proposals and we selected United. We have signed a five-year contract and we can add or subtract units to the agreement as requirements change. “United has a very good reporting system, with dedicated people at all locations plus, a dedicated management team who will liaise with me on a monthly basis. They will be looking to pin-point issues like peaks and troughs and if we have an ongoing damage issue with vehicles, rather than just repair or replacing that damaged item, they will investigate the cause so it doesn’t happen on a continual basis.” Mick said the forks selected were Caterpillar and the complete roll-out should be completed by the end of July this year. United has worked with the company to make them more economical, and fitted them with speed limiters and catalytic converters delivering better fuel economy. “We have tried to make the fitted accessories as protected as we can, with all the lights and mirrors facing inwards, so they are not hanging outside the forklift. They have additional safety features like detection presence, so they won’t start for instance, if the seat belt is not fastened. They all have reverse buzzers and we have introduced a new LED spotlight that goes forward and rear with a reach of six metres. Plus, when a forklift is in the vicinity, you will see a blue dot coming past you which gives an indication that a fork is approaching; backing out of an aisle or from a wagon.” Increased traffic and a need for an expanded area for the company’s distribution and freight services, has seen the Sydney SCT Distribution Centre move from Wetherill Park to Erskine Park, which is also located west of the city. “It is a far more strategic location in terms of the major customers we trade with and more attuned to what SCT does,” said Glenn Smith. “It’s also on the intersection of the M4 highway which heads west all the way to Parkes. “This will reduce driver fatigue risk, because it saves about half an hour on each trip and will give us a better turnaround. Another great plus is that the new centre allows us to handle temperature-controlled freight stock, including the new 48ft refrigerated containers. Previously we couldn’t store containers on site, so there are many pluses for us making the move.” Glen handles double trouble without a problem It was a case of ‘Hello”… “Hello” when SCT’s Glen O’Brien and wife Kate were presented with a pair of beautiful twins called Alexander and Mackenzie O’Brien. The two healthy little future SCT employees were born at the Freemasons Hospital, East Melbourne and welcomed into the world by Glen, Kate and big sister Sofia O’Brien. What’s moving in SCT’s WA operation? Ask Matthew The old western saying: “Get ‘em up! Move ‘em out!” should be a carved sign on the desk of Western Australia’s Operations Manager Matthew Carruthers. Matthew says his role is all about “the end-to-end process of both loading and unloading deliveries for in-bound and out-bound freight from four warehouses.” At any one time, Matthew is juggling a diverse array of freight on the company’s 100-150 semi-trailers each day and that doesn’t include SCT’s rigid fleet of smaller vehicles. Prior to joining SCT nearly six years ago, Matthew worked for a much smaller transport company involved in road linehaul, not rail, and after resigning and travelling for six months, he returned to the West and joined SCT. Asked what the obvious differences were between his previous employer and SCT, Matthew said size was the major difference with a vastly busier operation at SCT and freight arriving daily. “Previously my road linehaul experience was receiving 3 B-doubles per day on our busiest day,” said Matthew. “At SCT on our biggest day of the week, we are probably unloading 42 rail vans through one shed alone and handling 55 rail vans on our busiest day – so it’s the pure volume coming in that is superior.” Matthew said the company’s east bound freight is part of his new role and Matthew Carruthers, Operations Manager (far right), along with his team of supervisors and leading hands. From left to right, Matt Johnson, Timothy Harvey, Irene Walters, Greg Steinke and Richard Andrews. Apologies for Darren Symonds, Meng Yeow and Shaynon Easther who were unable to be present. while the volumes from the outbound shed were not as large, they kept him busy. “We’re seeing 80 to 100 rail vans a week, most of which are for our largest customer Laminex. I believe it’s a growing area for us and we are definitely trying to service our customer base who have product headed to the east. It is of course, more efficient and more economical to send a returning wagon back full.” WA State Manager, Brad Moore, endorsed Matthew’s ability to take on the challenge of managing what is possibly SCT’s largest operation. “Matthew commenced with the business some five years ago, and in that time has demonstrated a willingness to learn and advance with the Company, which has resulted in him being afforded some fantastic opportunities to showcase his potential. Matthew provides a wonderful example to new people to our business, and I personally look forward to witnessing his career advance”. In his spare time, Matthew enjoys footy (a West Coast Eagles supporter) and golf and currently has his girlfriend visiting from Canada. A champ on the field and in the office While Billy Duckworth is remembered by the over-‘40s as a sensational footballer, who played 182 games; was involved in two Premierships in ’84 and ’85 and a Norm Smith Medallist in 1984, it’s Bill’s work efforts and the focus he places on his job at SCT’s Perth depot, that really makes him admired and liked by his workmates. Bill commenced with SCT in 1991 assisting on the dock unloading wagons. Within 3 weeks he was asked to help out driving a truck for the CUB division on an as-needed basis. And before too much longer, was transferred to this division on a full-time basis. Bill continued to drive for CUB up until 2005 when he underwent surgery on a neck complaint that was causing numbness and muscle fatigue in his arms. The operation was not successful and he spent two years recuperating, returning to driving for SCT in 2007. However he found it very difficult to complete his tasks and when an opportunity arose with the departure of the fleet controller, Bill was offered the role given his experience with the deliveries and outlets. He commenced as Perth depot fleet controller in 2008 and has been doing that ever since. According to fellow employees, Bill is reliable in this role and outstanding when you consider that the number of absences from work in this period could be counted on one hand. His ability to overcome obstacles such as driver absences, truck breakdowns and meeting time windows, has been critical in SCT Perth achieving target for on-time performance. Bill came to football from the country, and h in joined West Perth the WAFL in 1980. 0. He joined Essendon in ’82 and had a stellar career, returning to Perth in 1991, where he played for West Perth in ’91 and ’92. After retiring from WAFL at the end of ’92 he joined the North Beach team in its ’93 Premiership year. After retiring from playing, he started his coaching career at North Beach in ’97. In his 15 years as senior coach, North Beach achieved 11 Grand Final appearances. Bill is an identity at the Perth depot and has the respect of everyone who comes in contact with him. www.sctlogistics.com.au Part-time job resulted in heading up operations margins The responsibility for controlling and despatching stock out of the Altona terminal is a joint responsibility between Simon Kefalas who looks after Operations Margins and Shane Avram who is Terminal Manager, looking after everything that moves across the floor. For Simon who works with a team of seven, the task is to ensure that customer products are organised on to the right services. “Say a consignment from Mars comes into our depot, I come in with my team and ensure that we get that consignment away on the right service,” explained Simon. “It obviously has to meet the delivery date, so I have my load-planners – who do all the allocations – oversee the freight so (a) we are utilising the wagon the best way we can by meeting our weight/ cubic targets to produce good healthy margins and (b) that we make sure we are servicing our customers throughout the movement.” Simon has a fair bit of interaction with SCT customers and was previously an SCT Account Manager. He will have been in the present role 12 months in August, so his previous job is a great blend for his current position. While there is no Operations Manager as such, Shane and Simon split the responsibilities between them. “I’m more administration while Shane looks after the floor,” said Simon. “In a week we get away four rail services to the West and five services to Queensland. I really like the challenge of the position and having a customer role was great experience,” he said. “Sitting in the hot seat in an operational role facing the daily challenges revolving around warehouse congestion and capacity, is stimulating. New drop well and high cubes offer customers extra space New PWXY wagon in Penfield, SA With SCT always looking at ways to improve their freight carrying capacity for customers, the latest purchase of Drop Well and High Cube wagons means just that. CEO Glenn Smith said this fleet will predominantly run out of Parkes in NSW. “Parkes services mostly our customer base in NSW and west-NSW,” explained Glenn, “as well as some of our QLD customers. We established our depot in Parkes because it is strategically located, being the first point on the rail line heading towards Perth where you can run a train up to 1.8km in length and without height www.sctlogistics.com.au restrictions. “So from Parkes we are allowed to double-stack containers using the new Drop Well wagons. It’s also the first place where we can use our High Cube wagons going to Perth. We’ve used the High Cube wagons in the past for our freight out of South Australia.” Glenn said they are used for general freight and initially had been built for their major customer in South Australia, Big W. “Now, with increasing volumes coming out of NSW and QLD, adding the most economical vans to our fleet just made sense. They will Left to right: Troy Clarke (Vic Load Planner), Simon Kefalas (Vic Planning Manager) and Shane Avram (Vic Terminal Manager). “It’s all about efficiency and thinking outside the square”, he said, “and how do we do things; how do we load a wagon to reduce cost and maintain margins?” Simon has been with the company for nine years and joined as a part-time employee while undertaking his Bachelor Degree in Logistics at RMIT. It was a four-year course including a gap year, but he said it ended-up taking him five years as he wanted to continue to work at SCT. replace the existing wagons on the north-south corridor.” The Drop Well wagons are an intermodal wagon into which containers are placed. “Drop Wells allow us to double stack our containers one on top of the other. This will be done out of Parkes and ADE, with the majority going out of Parkes and will increase our capacity to service our market out of Sydney.” Glenn said he expected that a lot of this new stock going into Parkes would be temperature-controlled goods. “We see these new additions as improving our service ex-Perth, and as more freight comes on board out of Perth with temperaturecontrolled facilities, the whole program enhances what we can offer new and future customers.” Do you have a story to tell? SCT Xpress is your voice, so if you have a story to tell, contact Bree Hillsdon on 03 9269 5437 or [email protected] You don’t have to be a budding novelist as we can help you.