Environmental Risk Analysis in Australian Maritime Logistics

This report investigates environmental risks within the maritime logistics sector, with a specific focus on Australian cases. It begins with an introduction highlighting the importance of maritime transport and the growing concerns surrounding environmental sustainability within the port industry. The research identifies key environmental risk factors, including climate change impacts like cyclones and storms, water waste, and greenhouse gas emissions. It then provides a literature review defining maritime logistics and exploring relevant environmental factors. The report further discusses risk management strategies, including identification, evaluation, mitigation, and monitoring, proposing a risk management framework. The research uses a positivism philosophy with a deductive approach and descriptive design, collecting data from primary and secondary sources, including managers and employees of maritime logistical companies in Australia. The research questions address the magnitude of environmental risks, the influence of port activities, and the effectiveness of current mitigation measures. The expected outcome of the research will help in mitigating risks involved in the maritime logistics.

INVESTIGATE ENVIRONMENTAL RISKS IN MARITIME LOGISTICS
Investigate environmental risks in maritime logistics with focus on Australian cases

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INVESTIGATE ENVIRONMENTAL RISKS IN MARITIME LOGISTICS
Abstract
This study focuses on risk analysis in maritime logistics with focus on Australian cases. The
research has identified different factors that created risks in maritime logistics. The aim of the
research is to analyse factors causing environmental risks in the maritime logistics. In addition,
the risk management framework has been discussed in the study.
The research will use positivism philosophy with a deductive approach and descriptive design.
Data will be collected from both primary and secondary sources. The date collection and sample
population will be managers and employees of maritime logistical companies in Australia. There
will be close-ended questions included in questionnaires. The data will be analysed using both
qualitative and quantitative analysis method. The expected outcome of the research will help in
mitigating risks involved in the maritime logistics.

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INVESTIGATE ENVIRONMENTAL RISKS IN MARITIME LOGISTICS
Table of Contents
1 Introduction
1.1Research Background.............................................................................................................3
1.2Research Rationale.................................................................................................................4
1.3 Research Aims, objectives and questions..............................................................................5
2 Literature Review.........................................................................................................................8
2.1Maritime Logisticsdefinition..................................................................................................8
2.2Environmental factors.............................................................................................................9
3 Risk Management...................................................................................................................11
3.1 Risk Identification...............................................................................................................12
3.2 Risk Evaluation....................................................................................................................13
3.3 Risk mitigation.....................................................................................................................14
3.4 Risk Monitoring...................................................................................................................15
5 Expected Outcomes................................................................................................................17
6 Research Structure..................................................................................................................18
7 Time schedules: Gantt Chart..................................................................................................19
References......................................................................................................................................20

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1. Introduction
1.1Research Background
Transport industry has been a developing market for transportation of goods and materials.
Approximately 90 percent of the goods in volume are transported by waterways. Therefore, the
need of industrialization is vital in the trade business through waterways (Bergqvist and Egels-
Zandén 2012). Ocean transport has been one of the great sources of income for the country. The
revenue invested in the waterways has been increased by 4% in recent years (Song and
Panayides 2012). This is the effect of industrialization in the maritime industry has been
increasing the profit for various companies in the industry. The analysis of the markets in the
industry has been a great impact for the researchers in order to understand risks involved inthe
industry.Environmental sustainability in port industry has been a growing concern for the port
authority and policy makers in the industry (Panayides and Song 2013). Communities included
in this industry have been affected by risks involved in the port. The evolution of maritime
logistics has been a major content for the development of the port facility in the industry. The
increase in demands of maritime transportation has attracted investors to invest in the industry
(Acciaro et al. 2014). The maritime logistics have been creating a major impact on the
development of the tourism by increasing the facilities at ports. The revenue of the sea ports has
been increasing with the implementation of the maritime logistics.
The bulk cargo ships contain various bulk materials including crude oiland various crude
minerals. Therefore, the transaction of money is huge in this context. The logistics of the
maritime industry have to be well maintained for avoiding financial loss in the company.This

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research outlines the risk factors that are included in the maritime logistics and transport
services. Different risks involved in this context will be critically analyzed.
1.2Research Rationale
Maritime transport has been playing a dominant role in maintaining the international trade for a
country. The transport of bulk materials and commodities with the help of large ships has been
influencing the market. However, intermodal transport has become a global phenomenon that has
been mechanized by industrialization. As mentioned by Osthorst and Mänz (2012), ports have
become elements in global commodity chains that help in maintaining the transport of the
maritime industry. The import and export of goods are done on the ports of the respective
countries. The risk management on the ports has been a critical issue of the industry.
In recent years, Australia has been facing challenges in the development of the ports and its
infrastructure (Holmgren et al. 2014). Major risks include the diversity in the change of climate
in Australia. The climatic change has been creating risks regarding accidents over oceans and
hardware damage in cargo ships. Therefore, rates of transport have been increased by 3.5 % by
the shipping company (Acciaro and McKinnon 2013). This has created the rise in the price of
commodities in the market. Therefore, the development of maritime industry is a critical point in
order to maintain different scenarios in the state. The adoption of 2030 Agenda for Sustainable
Development in order to prepare a framework for the development of ports in Australia has been
signed (Acciaro and McKinnon 2013). The International Convention for the Safety of Life at sea
amendments has been verified for the gross mass containers improved for stability and safety of
ships (Arıkan, Fichtinger and Ries 2014).

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INVESTIGATE ENVIRONMENTAL RISKS IN MARITIME LOGISTICS
Figure 1: Organization for Economic Cooperation and Development industrial
production index and indices for world gross domestic product, seaborne trade and
merchandise trade, 1975–2015
(Source: Unctad.org, 2018)
This research will focus on the risks factors in maritime logistics of Australia. The research will
provide detailed intimation of various risks including climatic change and its impacts on the
maritime industries. The research will help in fulfilling the objectives and aim of the research
that will be initialized.
1.3 Research Aims, objectives and questions
The objectives of the research are as follows:
 To identify the environmental risks involved in the maritime logistics

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 To critically analyse the vulnerability of risks including workforce and identity
adaptation measures
 To investigate challenges in implementing policy and practice and integrated decision
support
 To recommend strategies for mitigating environmental risks in the maritime logistics
The research questions are as follows:
1. On a scale of 1 to 5, how would you rate the magnitude the environmental risks in
maritime industry has affected ports in Australia?
a. 1 – very strongly
b. 2 – fairly strongly
c. 3 – strong
d. 4 - No effect
e. 5 – weakly affected
2. Do you think environmental risks in the maritime industry are influenced by port
activities?
a. Strongly agree
b. Agree
c. Disagree
d. Neutral
e. Disagree
f. Strongly disagree
3. What do you think of the current measures put in place to curb environmental risks
affecting the maritime industry?
a. They are excellent
b. They satisfactory
c. I have no idea
d. Some are working and some are not
e. They are not working
4. Do think that port authority and policy makers are doing enough to mitigate
environmental maritime logistic risks?
a. They are doing an excellent job
b. They are doing satisfactory job
c. They are doing a good job
d. They are nothing
e. They are not doing enough
f. They are doing a bad job

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5. Do think the workforce safety adaptation measures meant to safeguard them from
vulnerability to environmental risks in the maritime logistics industry are well set out?
a. Yes they are excellent
b. Yes they are satisfactory
c. I have no idea on the measures
d. Some parts are good some parts are not
e. No, they are not.
6. How do you think climate affects environmental risks in the maritime industry?
a. Very strongly affects
b. Strongly affect
c. Does not affect
d. I do not know
e. It affects slightly
7. Do you agree that industrial waste products contribute to the environmental maritime
logistics risks?
a. I strongly agree
b. I agree
c. I fairly agree
d. I am neutral
e. I disagree’
f. I strongly disagree
8. Do think the Australian government is doing enough with regards to climatic changes
that affect environmental maritime logistics industry?
a. Yes, it is doing more than enough
b. Yes, it is doing enough
c. I do not know
d. No, it is not doing enough
e. No, it is doing nothing
9. Would you agree that pollution caused by human activities such as oil spillage, as a
major cause of environmental risks in the maritime logistics industry?
a. I strongly agree
b. I agree
c. I have no idea
d. I disagree
e. I strongly disagree.
10. Do you think this questionnaire has addressed the issue of environmental risks in the
maritime logistics industry?
a. I strongly agree
b. I agree
c. I am not sure
d. I disagree
e. I strongly disagree


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2 Literature Review
2.1Maritime Logisticsdefinition
Maritime Logistics include the whole scope of the maritime industry and retains all the
departmental logistics of the industry the use of the maritime logistics in the maritime industry
has been used for maintaining for the transfer of goods and resources through ships and carriers.
However, the rapid increase in the international trade through waterways have increased the use
of the maritime logistics companies in the market. There have been dramatic changes in the
world trade and cargo transportation in business-to-business chain.The marine industry has been
an important link in international trade that helps in increasing the ocean network transport.
Maritime logistics deals with the total efficiency among the esteemed clients in the industry. The
use of the maritime logistics deals with the business with the freight carrier in the industry. It
deals with the transport in the inland carrier ships that helps in transferring goods and resources.
As commented by Pawlik, Gaffron and Drewes (2012), bulk freight representstraditional element
of maritime freight distribution with several physical characteristics of cargoes. The coastal
investments that have been maintained over the decades need to be reorganized in the industry. A
remarkable shift has been involved in increasing demands of industrialization in various parts of
the world. However, Dry bulk cargo can be shipped in large quantities and decrease the risk of
cargo (Acciaro 2013). It can be categorized as either minor bulk or major bulk.

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Figure 2: Ton-miles Shipped by Maritime Transportation, 1970-2005 (in billions)
(Source: Asariotis and Benamara 2012)
As commented by Monios and Wilmsmeier (2013), Iron, Oil and coal have accounted the
majority of ton-miles shipped.The availability of storage space has been an important element in
the increasing the buffer. In logistics industry, a port has been a major component of maritime
industry that has played an important role in the international trade.
2.2Environmental factors
Australia has been facing a great change in the climate from last decades. Various natural
calamities including drought, flood and cyclones have become common in these years. This has
been high lightening risks in the port. Cyclones and Storms are the common phenomena in
Australia that have damaged ports largely. The cyclone track is towards the southeast of
Australia. This place is more prone towards cyclone and sea storm (Holmgren et al. 2014). The
environmental factors include the water waste materials and GHG emission. Water waste
materials are sedimentin the seashore of the ports. These create problems in the ports during

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arrival and departure of any cargo ship. These waste water materials stuck into the blades of the
ship causing damage to it.Therefore, nearby ports have the high risk of damages. The risk
assessment strategies have been introduced in the state for mitigating the risks involving in the
maritime logistics and ports (Cariou, Ferrari and Parola 2015). The use of the government reports
about the climatic change has helped in preparing strategies to mitigate problems. Various
researchers and geologists have been appointed in order to study the climatic condition of
Australia.
Figure 3: Australian climate zones

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(Source: Heaver 2015)
The reports regarding the climatic change in the state have been reviewed by the Australian
Government that have drawn attention to the risks. The exposure of the sea level rise and
decrease have created risks to the ports.
3 Risk Management
Risk management in the maritime logistics has been an important element in the industry. A
variety of risks is involved in the ports including environmental risks. As discussed earlier the
risks including cyclones and storm have been major risks in the context (Vermeiren and
Macharis 2016). The RM related processes and methodology have been implemented for
mitigating risks and hazards in the maritime logistics. The offshore and shipping industries
including oil and gas sectors have been maintaining risk management strategies for minimizing
risks and hazards in the port. The qualitative risk management process has been used in a context
that helps in providing risks evaluation techniques and mitigation methodology (Hsieh, Tai and
Lee 2014). The key issue in risk management needs to be integrated and embedded in the
functions of the organizations for improvising decision-making strategies.