One of the major H& S risks within our business is our traffic management in terms of the operational activity that takes place with regards to Full Container Load movements.  I would like to highlight the risks in detail for your consideration:

1. Devanning of Full Container Loads. (FCL)
   1. SCS often use contractors for the Devanning of FCL which creates risk as we have a shared PCBU status.
2. Freight Arrival
   1. Predominantly we receive Full Container Loads (20ft | 40ft)
   1. LCL and Airfreight
   1. Each of our clients has a different carrier which is mainly determined by your International Freight Forwarders. (IFF)
3. Freight Departure
   1. NZPost, Daily Freight – Main Freight, Bascik and Kamush are SCS main carriers.
   1. We are also using Onsend, Toll and a few other customer collections.
   1. FCL Carriers determined by IFF collects empty containers for dehire.
4. Movement within our facilities
   1. We have a large amount of MHE (hoist) and Truck movements within our facilities, this presents one of the biggest risk factors at SCS.
      1. Devanning | Consolidation of FCL
      1. Truck Loading and Unloading of LCL

On reviewing the risks presented above within our Traffic Management and having the necessary control measures in place, we see another significant control measure we can put in place is the FCL movements within our facilities.

On review of the Work safe website, it is evident that there were 216 workplace deaths in the  2019-2022 fatality data, looking at the detail it appears 11 of them are on the yard while loading or unloading so itis clearly an area we need to be conscience of and be taking practicable steps around.

Most of our competitors have contracted their own fleet of trucks or have a single freight provider, in both cases this significantly reduces the transport management risk in their yard.

With the intent to mitigate the H&S risks in terms of traffic management, tentatively we are talking to a few customers to gauge how they feel about SCS contracting a singular trucking company to do the container movements. We would control this, like we do for Bascik or NZ Post and your IFF would just need to book with us, and we would put the charges on your monthly bill.

Key benefit and outcomes that we would require from any change would be

1. Improved safety: H&S Risk mitigation with our traffic management, when using a single provider there is clearer transparency on reporting and responsibility resulting in better management and a safer environment.
2. Better control: SCS will create efficiency of the grid spaces by less redundancy (i.e., delivery and collection at the same time and no waiting between a truck clearing and the next replacing)
3. Ease of access to our facilities: As SCS will be controlling the FCL Carrier movements we will be looking to allow 24/7 access to the yard for the potential trucking company, this will improve flow as they can operate in the least congested period of the day.
4. Potentially Increased TAT: With improved container flow this will enable us to Devan and make stock available faster than currently possible, especially during the peak season.
5. Decreased Bottlenecks: A requirement of the selected trucking company will be that they have their own yard. This will be a Detention and Demurrage buffer when ports are struggling with volumes, again especially around the peak season.
6. Cost Neutral or Savings: With the aggregation across all our volumes, we will aim to negotiate rates that will enable us to pass on commercial benefits to our customers.

It would be our goal to make the potential transition seamless, if you have any feedback, comments and or queries please reach out and let me know jacqui.whaanga@supplycs.com.