Automation – Asciano’s double edged sword

Australian container terminal operator Asciano has announced a AUS$348m automation project for its Botany Bay facility which when implemented could see the workforce there reduced by over 50%.

The Port of Botany – trouble ahead? Photo: Brent Pearson

The company has so far not commented on the redundancy question, except to say in a statement that it is “strongly committed to identifying redeployment opportunities for affected staff”.

The automation project will include the installation of AutoStrad straddle carrier technology, which Asciano says has delivered significant efficiency and safety improvements at the Port of Brisbane. The project, which will increase capacity from 1.15 to 1.6m teu, is due for completion in 2014 but then 270 jobs will go – more than half of Asciano’s Sydney workforce.

Consultations with affected staff have already begun, but there are rumours of industrial action by the Maritime Union of Australia (MUA) – according to The Australian. It says MUA has said that Autostad technology was not discussed at the recently resolved protracted 20 month pay negotiations which cost Asciano AUS$15m.

Longer term, Asciano also wants to introduce automatic stacking cranes to increase capacity further to 2.8m teu so there are more uncertain times ahead for workers.

It is not yet clear if there are similar automation plans in the pipeline for Asciano’s Melbourne terminal.