Lies, damned lies and newspaper reports: investigating coal shipments through the port of Newcastle

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Title Lies, damned lies and newspaper reports: investigating coal shipments through the port of Newcastle
Author Zacarias, Katherine Berzuela; Fisher, Ron James; Gapp, Rodney Peter
Publication Title Proceedings of the ANZAM Operations, Supply Chain & Services Management Symposium 2008
Editor P.J. Singh, D. Prajogo, P. O'Neill, S. Rahman
Year Published 2008
Place of publication Melbourne
Publisher Monash University
Abstract Australia's reputation for the quality of its coal has led to this commodity becoming a major input to the country's economy. About 88 million tonnes out of Australia's annual port capacity of 270 million tonnes of coal are shipped through the Port of Newcastle, which claims to be the world's largest coal handling port. However, capacity constraints at various parts of the supply chain threaten export shipments of coal. In the past demand for coal has been regular and constant. However, recent rapid increases in demand, attributed mainly to an increasing Chinese market, have pushed the existing system beyond its capacity. An outcome of the inability of the coal supply chain to meet demand has been the increasing number of vessels waiting to enter the port. In 2002, the number of vessels anchored off the port often exceeded 50 daily. In an attempt to reduce vessel waiting time, and the burgeoning cost of demurrage, a vessel priority system for loading was introduced. The system appeared to be effective, with the daily number of vessels anchored off the port reducing to single figures. However, in 2007 the number of vessels awaiting entry to the port has again risen to more than 50 on most days, leading to cuts in export quotas [1]. Exacerbating the situation are orders for coal totaling 120 million tonnes for shipment in 2008. This ongoing research, initially based on newspaper reports and ACCC documents, is a qualitative exploratory case study that investigates the issues affecting the transportation, loading and shipment of coal through the Port of Newcastle, Australia. The research aims to identify why so many ships are waiting to load coal, and how the length of the queue may be reduced. However, reports widely circulated do not accurately reflect the situation at the Port. Following unstructured, formal interviews involving several key people in the coal supply chain a different story has emerged.
Peer Reviewed Yes
Published Yes
Copyright Statement Copyright 2008 Australian & New Zealand Academy of Management. The attached file is posted here in accordance with the copyright policy of the publisher, for your personal use only. No further distribution permitted. Use hypertext link for access to publisher's website.
ISBN 9780734039439
Conference name 6th ANZAM Operations Supply Chain and Management Symposium 2008
Location Gold Coast, Australia
Date From 2008-06-08
Date To 2008-06-10
URI http://hdl.handle.net/10072/22723
Date Accessioned 2008-06-27
Language en_AU
Research Centre Griffith Institute For Tourism
Faculty Griffith Business School
Subject PRE2009-Business and Management
Publication Type Conference Publications (Full Written Paper - Refereed)
Publication Type Code e1

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