Clay Frederick News

Australian towage operators threatened by foreign competition were at standstill with the Maritime Union of Australia (MUA) last Tuesday as a dispute over tug boat manning levels escalated. "Increasingly we are seeing overseas towage companies tendering for towage contracts in our ports," said Adsteam Marine Ltd. CEO Clay Frederick, noting that comparable offshore ports operated with mostly three man crews. "I don't think our customers are going to cop the fact that we are there with four men, when clearly it has been proven it can be done with three," he said. Adsteam plans to reduce manning levels in a bid to carve A$5 million annually out of its cost base.

Towage group Adsteam Group Ltd. will appeal a New South Wales ports authority ruling that prevented it from applying planned reductions in tugboat crews in the state. "The waterways group considered the matter yesterday, heard submissions from both sides, and concluded it had insufficient information to accept our proposal," Adsteam CEO Clay Frederick said. The Maritime Union of Australia (MUA) said Adsteam's refusal to accept the findings meant a planned 24-hour strike would now go ahead. MUA deckhands will stop work on Adsteam tugs in all New South Wales ports for 24 hours from midnight Wednesday.