Comparative Analysis: Cargo Handling at Port Hedland and Melbourne

This report provides a comprehensive analysis of cargo handling operations at the Port of Hedland and the Port of Melbourne, two major Australian ports. It begins by outlining the roles of each port in supporting Australia's economy, with Port Hedland specializing in bulk exports (primarily iron ore) and Melbourne handling a significant volume of containerized goods. The report details the main cargoes handled at each port, including the specific commodities and their respective volumes, with data from 2017/2018. It then explains the distinction between bulk and containerized cargo, discussing the reasons behind shipping certain goods in bulk or containers, highlighting the benefits of containerization. Furthermore, the report examines the types of vessels used for different cargo types, such as multi-purpose and Ro-Ro vessels, and how vessel selection is determined by cargo characteristics and shipment sizes. The conclusion emphasizes the significant contributions of both ports to the Australian economy and summarizes the key findings regarding cargo handling practices and vessel utilization.

Cargo Handling at Port Hedland and Melboutne1
CARGO HANDLING AT PORT HEDLAND AND PORT OF MELBOURNE
Student’s Name
Course
Instructor
Institution
City, State
Date
1

Cargo Handling at Port Hedland and Melboutne2
Port Hedland and Port of Melbourne
The Port of Melbourne delivers reliable and responsible port services and facilities that
are not only safe but also world class. The port plays a crucial role in supporting Victoria’s
expanding economy through its competent freight supply chain (Port of Melbourne 2019). The
port is known for facilitating the movement of cargo within regional Victoria and Melbourne
area. Shipping Australia Limited (n.d) notes that Port Melbourne is the biggest container port in
Australia and acts as a gateway for motor vehicles and bulk cargoes. Port Hedland, in contrast, is
ranked, among the world’s largest port in reference to cargo export and its objective is to
enhance the export of goods from the resource endowed regions (Pilbara Ports Authority, 2014).
It is, thus, apparent that the two ports (Port Hedland and Port of Melbourne) play a crucial role in
the expansion of Australia’s economy through cargo transport. The development of these ports is
attributable to the expansion of the export industry such as the oil and gas sector including
mining, and resource production
Overview of the Main Cargoes Handled in 2017/2018 year in the Two Ports
Port Hedland
Globally, Port Hedland is the leading bulk export harbor, and in Pilbara, it is the largest
in exporting iron ore from the world renowned producers. Australian Floating Decks PTY Ltd
(2018) points out that in 2018, about 98% of the freight shipped through it was iron ore while in
2017, it was responsible for 60% of the combined iron ore exports in Australia (Australian
Floating Decks PTY Ltd 2018). The port’s strategic position enhances critical communications
between the northwest of Australia and the Pilbara region. The port is also acknowledged as a
crucial location for importing fuel in addition to the exportation of lithium, salt, chromite,
manganese, and copper (Australian Floating Decks PTY Ltd 2018). General freight imports
2

Cargo Handling at Port Hedland and Melboutne3
include construction and project cargo, railway equipment, and mining consumables such as
chemicals, mill ball, and flocculent (Australian Floating Decks PTY Ltd 2018). The table below
highlights Port Hedland 2018 major cargo statistics.
Types of Cargo Millions of Tones Exported or Imported
Iron Ore 508million exported
Fuel 1.54million imported
Freight inbound and Freight Outbound 106,467toness and 84,493 tons respectively
Source: (Australian Floating Decks PTY Ltd 2018)
Port of Melbourne
In the financial year 2017/2018, the Port of Melbourne growth in trade was one of the
strongest after six years. The numbers of containers imported were highest in June and the
commodities that were responsible for the increase were timber (56%), Plasticware (18%),
furniture (13%), aluminum (43%), ceramic goods (27%), and metal manufacturers (13%)
( Newton, 2018). Motor vehicle trade in June 2017 recorded an increase of 10.3% and in the
financial years 2017/2018; it went up by 8.0%. Commercial vehicle imports were responsible
for the June results because they increased to 70.9% while new passenger vehicles imports rose
up by 6.7 % (Newton, 2018). Other cargoes including the import of machinery, steel, and iron
increased to 80.2% in 2017, to be precise in June and increased by 34.4% in the financial year
2017/2018.
Why the Cargoes Were Shipped as Bulk or as Containerized
Bulk cargoes are categorized into break-bulk, liquid bulk, and dry bulk. Liquid bulk
refers to all liquid goods that are transported via a pipeline or big tankers to reach their final
destination and includes fuel oil, petrol, and crude oil (Australian Government 2018). Dry bulk;
in contrast, include products such as cement, iron ore, coal, and grains which are often
3

Cargo Handling at Port Hedland and Melboutne4
transported in bulk either via a lorry, wagon, or ship. Breakbulk refers to products that can be
transported or shipped in a container. This type of cargo breaks easily. For this reason, they are
often packaged in racks, crates, or pallets. Container cargoes are transported via containers and
in large quantities such as automobiles, electronics, and clothes among others (Lee & Meng
2015). As discussed earlier, container shipping is most prevalent in Port Melbourne while bulk
shipping is common in Port Hedland. General cargoes are placed in containers because of the
benefits that characterize containerization including reduced cargo handling, enhanced
protection, and the possibility or reducing damage and loss (Australian Government 2018; Oram
& Skene Smith 2015). Breakbulk cargos are essential in enhancing the growth of the Australian
economy. A majority of breakbulk cargo are heavyweight and oversized items such as
construction steel, mining machinery, and refinery equipment which cannot fit into containers
and are high-value goods and products.
Explain Why Certain Ships Were Utilized For Certain Cargoes Concerning the
Characteristics of Cargoes and Sizes of Shipment
Contemporary maritime profit-making vessels assume distinct sizes and shapes to
enhance their suitability in carrying different categories of cargoes. Port Hedland deals with bulk
cargoes including fuel oil and iron ore whereas Port of Melbourne mostly handles containerized
products such as plastic ware, ceramic good, and automobiles among others. For this reason, the
type of cargo shipped greatly determines the type and vessel used. As per the two ports, the types
of vessels used are Ro-Ro vessels and multi-purpose vessels (Shipping Australia Limited 2018).
Multi-purpose vessels are very versatile, the reason they are utilized in break bulk trade. They
come in different sizes, to be precise from 15,000 to 30,000DWT range. The second category of
vessels utilized is the Ro-Ro vessels which assume different forms including cargo ships and
4

Cargo Handling at Port Hedland and Melboutne5
vehicle ferries. They are designed to carry wheeled cargo including excavators, trucks, buses,
and cars (Shipping Australia Limited 2018). They are categorized into two including Pure Car &
Truck carriers (PCTC) and Pure Care Carriers (PCC) whose objective is apparent as per their
names. A small number of RoRo range from 15,000to 40,000(Shipping Australia Limited 2018).
Other vessels that ship cargoes in the two airports include Dry cargo ships and liquid cargo ships
Conclusion
Research confirms that Port Hedland and Port of Melbourne are the largest ports in
Australia for shipping bulk and containerized goods respectively. In the year 2017/2018, each
port recorded a significant increase in the amount of cargo exported or imported. For this reason,
they are playing a major role in strengthening the economy of Australia. The vessels that
enhance the functioning of exporting and importing activities at the ports include the Multi-
purpose and the Ro-Ro vessels. However, bulk, dry bulk, and liquid bulk vessel are also present
in the ports.
List of References
5

Cargo Handling at Port Hedland and Melboutne6
Australian Floating Decks PTY Ltd 2018, Pilbara Freight Study. Available from:
<https://karratha.wa.gov.au/sites/default/files/uploads/OCR171902%20Pilbara
%20Freight%20Study%20-%20FINAL.pdf> [14 March 2018]
Australian Government 2018, National freight supply chain priorities. Available from:
<https://infrastructure.gov.au/transport/freight/freight-supply-chain-priorities/supporting-
papers/files/Supporting_Paper_No2_Maritime.pdf> [14 March 2019]
Lee, CY& Meng, Q 2015, Handbook of ocean container transport logistics: making global
supply chains effective, London, Springer
Newton, M 2018,’ Record container trade for Port of Melbourne,’ Media Release March 24 ,
Available from: <https://www.portofmelbourne.com/wp-content/uploads/MR-RECORD-
CONTAINER-TRADE-FOR-PORT-OF-MELBOURNE-.pdf > [14 March 2019]
Oram, R B & Skene Smith, N2015, Cargo Handling and the Modern Port: the Commonwealth
and International Library of Science Technology Engineering and Liberal Studies, Kent,
Elsevier Science.
Pilbara Ports Authority 2014, Port Profile. Available from:
<https://www.pilbaraports.com.au/Port-of-Port-Hedland/About-the-port/Port-profile> [14
March 2019]
Port of Melbourne 2019, About the Port. Available from:
<https://www.portofmelbourne.com/about-us/about-the-port/> [14 March 2019].
6

Cargo Handling at Port Hedland and Melboutne7
Shipping Australia Limited.(n.d). Break Bulk Shipping Study. Available from:
https://shippingaustralia.com.au/wp-content/uploads/2012/03/Break-Bulk-Study-
Final.pdf
7