MARITIME IRC

SKILLS FORECAST KEY FINDINGS DISCUSSION PAPER 2017

Maritime IRC Key Findings Paper | March 2017 | © Australian Industry Standards Ltd. 1

The purpose of the paper is to provide industry stakeholders with a summary of the key findings from the recent industry intelligence gathering activities overseen by the Maritime Industry Reference Committee (IRC). The key findings will be used by the IRC in the development of the Maritime IRC Skills Forecast and Proposed Schedule of Work for the MAR Maritime Training Package. Once approved by the Australian Industry and Skills Committee (AISC) the Skills Forecast will replace the 2016 Maritime IRC Workplan.

Several targeted strategies were employed to collect industry intelligence about the opportunities and challenges for the Maritime workforce and any Training Package review work necessary to meet these industry needs. These included:

• A Call for Submissions process inviting stakeholder responses about key issues affecting skills and workforce development;

• An IRC Skills Forecast Survey seeking information on priority skill needs, skill shortages and issues relating to workforce training and;

• A comprehensive review of Data and Research Sources nominated by the Maritime IRC Australian Industry Standards has been tasked by the IRC to collect feedback from interested stakeholders about these issues on its behalf.

HOW TO PROVIDE FEEDBACK Stakeholders are invited to submit their comments on the findings outlined in this paper by close of business on March 17th 2017.

It is acknowledged that the information provided about issues in this paper is deliberately brief. The purpose of this paper is to validate and confirm the findings, which will inform the advice the Maritime IRC will provide to the AISC.

In considering the key issues and themes identified in this paper, we are keen to have any feedback that either confirms your issue has been covered, or else raises an issue you feel should be addressed in the Proposed Schedule of Work (FY17/18–FY20/21) for the MAR Maritime Training Package to be submitted to the AISC on April 28th 2017.

Responses can be emailed to enquiries@australianindustrystandards.org.au

For further information please contact:

Klausch Schmidt Industry Manager P (03) 9604 7223 M 0417 568 967

KEY FINDINGS DISCUSSION PAPER MARCH 2017

Maritime IRC Key Findings Paper | March 2017 | © Australian Industry Standards Ltd. 2

The Maritime industry had an estimated annual revenue of $9.34 billion, adding $4.85 billion to the Australian economy in 2016. Ten per cent of the world’s sea trade passes through Australian ports and 99 per cent of Australian exports are transported by sea. Our coastline is over 60,000 kilometres in length and our search and rescue region covers more than 10 per cent of the Earth’s surface. Per capita, Australia has more cruise passengers than any other nation, making it the fourth-largest cruise market in the world.

Maritime INDUSTRY METRICSRevenue ($b) 9.34Profit ($m) 1,290Average Wage ($ per year) 109,250.88No of Businesses 1,439Employment Growth (% to 2022) 8

Scope: Water Passenger Transport, Water Freight Transport, Water Transport Terminals, Navigation, Towage and Services to Water Transport1

KEY FACTS:

• 30 per cent of Australian GDP is dependent on international shipping2 • 99 per cent of all Australian international trade is carried by sea2

• Nearly 29,000 ships visit each year3 – some of which will make more than 25,000 trips in total2

• 10 per cent of the world’s trade will pass through Australia’s ports2

• More than $1.9 billion in economic gains through the cruise ship industry2

MARITIME INDUSTRY OVERVIEW

1 IBISWorld Industry Reports. http://www.ibisworld.com2 D. Chester. 29 September 2016. World Maritime Day celebrates shipping.3 D. Chester. 11 November 2016. Australia announces candidacy for Category B of IMO Council

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MARITIME SKILL SHORTAGES66.66 per cent of employers reported experiencing a skills shortage in the last 12 months4. The occupations reported as being in shortage were:

1. Deck Crew2. Educators3. Divers4. Marine Surveyors5. Marine Engine Drivers

Employers identified the following reasons for the shortage with the most frequent response listed first.

Reasons for shortageShortage of skilled/qualified personnelAgeing workforce/current staff retiringCost/time to achieve the required qualificationGeographic location of the vacancyUnattractive job/poor industry image

MARITIME WORKFORCE

Source: ABS Labour Force, Australia, Detailed, Quarterly, Nov 2016

MAR

0400475

1,4001,775

2,1753,025

3,175

0 500 1000 1500 2000 2500 3000 3500

ACTSANTTASNSWWAQLDVIC

MARITIME WORKFORCE

4 Australian Industry Standards. February 2017. IRC Skills Forecast Survey.

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AGEING WORKFORCEAustralia’s maritime workforce is one of the oldest in the country, with 65 per cent of workers aged 45 years or older5. In the short to medium term, the ability to successfully attract, train and retain young workers will be critical in meeting the skills needs of the industry.

Provision of mentoring and leadership training to skilled operators with comprehensive technical knowledge will enable them to help develop younger workers and assist employers with retention. Targeting female participation could increase the available labour pool.

The reputation of the shipping industry as ‘low-tech’ may hinder attempts to attract new generations of maritime workers. If maritime industries incorporate cutting-edge technologies and innovative practices to appeal to younger workers, skill-building around these technologies and practices will also be required6. An increase in the digital literacy of new and established workers will enhance their career progression and advance maritime industries substantially.

OPERATING ENVIRONMENTStagnation in the growth rate of the Australian mineral and energy commodities sector has had an immediate effect on shipping activity. To add to this, there is ongoing decline in numbers of ‘blue-water’ Australian flagged ships operating within Australia.

However, longer-term trends forecast that container throughput will double by 2030. There has also been significant growth in the cruise liner sector within Australia, with a six-fold increase of passengers over the past decade. Jobs growth within this sector is likely to increase to meet the demand.

TECHNOLOGYThe introduction of new technologies is ongoing and companies are shifting their use of these technologies at a rapid pace. Over the next decade, technologies will continue to evolve and further integrate operations.

KEY MARITIME SKILL ISSUES

5 Australian Government Job Outlook. 2012. Marine Transport Professionals. http://joboutlook.gov.au/occupation.aspx?search=alpha&tab=stats&-cluster=&code=2312 6 IHS Maritime & Trade. Five trends shaping the global maritime industry. https://www.ihs.com/pdf/Global-Trends-Impacting-the-Maritime-Indus-try_235788110915583632.pdf

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KEY MARITIME SKILL ISSUES

New technologies shaping the maritime sector include7:

• Robots, sensors, and big data• Propulsion and powering• Smart ships and autonomous systems• Deep ocean mining, marine biotechnologies Big data analytics has led to the development of the Automated Identification System. The System utilises a network of satellites to track the movements of ships while at sea. It also provides information on their performance while operating, loading and discharging cargo. The potential of this new technology to influence decision-making and strategy requires sufficient training to be realised.

The prospect of autonomous shipping is fast becoming a reality, with the first autonomous ships due to be launched in 20208. Drones have also been used to monitor remote maritime locations. The drones, in conjunction with high definition cameras, allow for minute detail to be captured and the health of the region to be assessed9. These emergent technologies will have a significant impact on maritime industries and carry unique skills that will require development in future training initiatives.

Operations will likely change dramatically over the coming decades and companies will need to invest in capacity building through education and training of their people. Specialist training will also be a priority and may present a challenge to the sector.

STRONG COMPETITION FOR SKILLED WORKERSThe Maritime industry operates in a globalised network, shipping almost two-thirds of the world’s trade goods. The Asia Pacific region accounts for one-third of this trade. The Maritime industry is highly competitive as organisations compete for market dominance within a growing industry. Locally, these markets also include fishing and aquaculture, tourism, patrol, and rescue operations.

7 Lloyd’s Register, QinetiQ and University of Southampton. August 2015. Global Maritime Technology Trends 2030.8 Sky News. 14 February 2017. Crewless ships to take to the seas. http://www.skynews.com.au/tech/techinnovation/2017/02/14/crewless-ships-to-take-to-the-seas.html 9 ABC News. 30 January 2017. Ningaloo Reef captured from sky in drone-driven health check. http://www.abc.net.au/news/2017-01-30/ningaloo-reef-captured-from-sky-in-drone-driven-health-check/8224180

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There is strong demand for electro-technical officers and marine engineers within the industry10. As new technologies are adopted by companies, the skill requirements will also change. The provision of specialist skills in robotics, design, engineering, and big data analytics will need appropriate training and capacity building.

To develop these projected skills, companies will need to start providing the right education and training programs to ensure that onboarding of new technologies and operations are adequately resourced.

Some stakeholders report concerns about potential misalignment between skilled migration arrangements and maintaining viable career pathways for Australian trained seafarers. Improved mechanisms for moving from near-coastal to ocean-going operations via efficient skilling pathways would support enhanced career opportunities for seafarers11.

ACCESS TO TRAININGSeafarer training is affected by the scarcity of training berths, which is due to the decline of ‘blue-water’ vessels within the Australian fleet. Finding a solution to the shortage will be a priority for the industry.

Variations in jurisdictional funding and traineeship arrangements are reported as impacting the viability of delivering training in a narrow market for specialist technical areas. Longer-term, this situation may lead to capacity constraints for industry and training organisations alike. These conditions present challenges for RTOs when considering future investment in training infrastructure and equipment, particularly those involved in new technology.

By imparting high-level skills in digital practices, RTOs will have the opportunity to influence the adoption of similar approaches within maritime industries. The benefits of incorporating cutting-edge technology in education can be seen in the ship and tug simulators that were introduced to allow maritime workers to gain experience. This technology can be applied to the entire manoeuvring team and provides valuable training in this space12.

KEY MARITIME SKILL ISSUES

10 Transport and Logistics Industry Skills Council (TLISC). 2015. Environmental Scan.11 IHS Maritime & Trade. Five trends shaping the global maritime industry. https://www.ihs.com/pdf/Global-Trends-Impacting-the-Maritime-Indus-try_235788110915583632.pdf12 Fremantle Gazette. 22 February 2017. HR Wallingford opens new ship simulation centre at Atwell Arcade. http://www.communitynews.com.au/fremantle-gazette/news/hr-wallingford-opens-new-ship-simulation-centre-at-atwell-arcade/

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PRIORITY SKILLS

The priority skills results are drawn from Maritime stakeholder responses to the IRC Skills Forecast survey conducted in February 2017. In order of priority to the industry, the following skills were identified as the most important for the Maritime workforce within the next three to five years.

SKILL CATEGORYNavigation/vessel operationsComplianceProfessionalismWHSTechnical

Ranking of the 12 generic workforce skills in order of importance to the Maritime industry.

GENERIC SKILLManagerial/LeadershipTechnologyCustomer service/MarketingEnvironmental and SustainabilityDesign mindset/Thinking critically/System thinking/Solving problemsScience, Technology, Engineering, Mathematics (STEM)Communication/Virtual collaboration/Social intelligenceLearning agility/Information literacy/Intellectual autonomy and self-managementLanguage, Literacy and Numeracy (LLN)EntrepreneurialData analysisFinancial

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INDUSTRY REFERENCE COMMITTEES New arrangements for training product development commenced in January 2016. These arrangements consider the needs of employers of all sizes, across all industry sectors, and ensure the delivery of high quality Training Packages that are nationally endorsed and internationally regarded.

Industry References Committees (IRCs):

• Provide a forum for industry engagement.• Direct the review, development and implementation of training package content relevant to

the industry sectors they cover.• Act as a conduit for industry feedback to the Australian Industry and Skills Committee (AISC)

and governments on industry trends. IRCs are composed of individuals and industry members with the experience, skills and knowledge of their particular industry sector. IRCs are supported by independent and professional Skills Service Organisations (SSO) to develop and review Training Packages, and to inform Training Package development priorities.

IRCs have a direct relationship with the AISC, and are charged with identifying industry’s skills needs, developing business cases setting out the case for change, and providing the sign off on training products before they go to the AISC for consideration.

Each IRC will perform the following functions;

• Gather intelligence for their industry sectors to inform advice on Training Package development and review.

• Direct the work of its SSO in the development of industry proposals, cases for change and cases for endorsement.

• Oversight the development and review of Training Packages in line with the requirements of the AISC.

• Provide sign off for industry proposals, cases for change, cases for endorsement and other submissions for consideration by the AISC.

• Direct the work of the SSO in preparing the support materials where funding for additional activities is provided.

• Report to the AISC on progress of its work.• Promote the use of Vocational Education and Training (VET) in the sectors they represent.

BACKGROUND INFORMATION

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MARITIME INDUSTRY REFERENCE COMMITTEEThe Maritime Industry Reference Committee (IRC) has been assigned responsibility for the MAR Maritime Training Package.

Chair: Isabelle Guaran, Maritime Industry Australia Ltd (MIAL)

Deputy Chair: Dan Pearson, Australian Maritime Officers Union

http://www.australianindustrystandards.org.au/committee/maritime-industry-reference-committee/

The MAR Maritime Training Package provides the only nationally recognised Vocational Education and Training (VET) qualifications for occupations involved in: General Purpose Hands, Coxswains, Marine Engine Drivers, Marine Engineers, Marine Surveyors, Cooks, Integrated Ratings, Deck Officers, Ship’s Masters and Marina Operations.

The MAR Maritime Training Package comprises 26 qualifications, 16 Skill Sets, 199 units of competency and associated assessment requirements and covers: Near coastal and ocean going maritime operations.

The MAR Maritime Training Package is in the Scope of Registration of 59 Registered Training Organisations.

IRC SKILLS FORECAST & PROPOSED SCHEDULE OF WORKThe IRC Skills Forecasts focus on the prioritisation of the skill needs of the industry sectors each IRC has responsibility for. They are developed and reviewed annually in consultation with industry stakeholders, and submitted on behalf of the IRC to the Australian Industry and Skills Committee (AISC) for approval.

IRCs are required to consult broadly with stakeholders to ensure a whole-of-industry view about the opportunities and challenges for the workforce and the Training Package review work necessary to meet industry needs.

The IRC Skills Forecast is submitted to the AISC to inform the development of a four-year rolling National Schedule for Training Package development and review work. More information on the National Schedule can be found at: www.aisc.net.au/content/national-schedule

BACKGROUND INFORMATION

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AUSTRALIAN INDUSTRY STANDARDSAustralian Industry Standards (AIS) provides high-quality, professional secretariat services to the Maritime Industry Reference Committee, in our role as a Skills Service Organisation. AIS provide services to eleven allocated IRCs which also cover the Gas, Electricity, Electrotechnology, Corrections, Public Safety (including Police, Fire and Emergency Services, Defence), Water, Transport and Logistics, Rail and Aviation industries. AIS supports these important industry sectors using our world class in-house capability and capacity in technical writing, quality assurance, project management and industry engagement in the production of training packages.

AIS was established in early 2016, 20 years after its predecessor the Transport and Logistics Industry Skills Council (TLISC) was established in 1996. More information about AIS can be found at www.australianindustrystandards.org.au

• We support industry growth and productivity through our modern innovative approach to establishing skills standards.

• We provide high-quality, professional secretariat services to help our allocated industry reference committees develop the skills that industry needs.

• We partner with industry to shape the workforce of the future.

BACKGROUND INFORMATION

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P: (03) 9604 7200E: enquiries@australianindustrystandards.org.auW: www.australianindustrystandards.org.au twitter.com/AusIndStdsLevel 2, 31 Market Street, South Melbourne, Victoria 3205