August 2022 Issue – Dry Cargo International

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IS S U E NO. 260 AU G U ST 2 0 2 2

FEATURES Iron Ore Trades

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Inspection, Analysis & Sampling

Bulk Unloading & Loading

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CONTENTS

The unique ORTS radiocontrolled diesel hydraulic grabs are sometimes also available for hire. Shown here is a DHS-B 12m³ during urea unloading operations in a European port.

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AUGUST 2022 issue

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Doubts about coal trade growth Europe seeks alternatives to Russian coal IRON ORE: CHINA STIMULUS PROGRAMME CENTRAL TO IMMEDIATE FUTURE OF STEEL AND IRON ORE PETCOKE: HEADLINE TO BE CONFIRMED

SHIPPING & TRANSPORT

Shipnext: transforming a $2 trillion market with technology Host sails first vessel on Mississippi River with 50 feet draught

PORTS, TERMINALS & LOGISTICS

Gdynia and Riga Freeport sign memorandum on coal Shakhtersk coal port breaks loading record in June A FINE REPRESENTATIVE SPECIMEN: INSPECTION, ANALYSIS & SAMPLING

ENGINEERING & EQUIPMENT

Bedeschi supplies new pipe conveyor to TGN Port FLSmidth announces completion date for the acquisition of TK Mining A WEIGHT OFF: SHIP-UNLOADING — AND LOADING — AND ALL IT ENTAILS ON BOARD WITH BULK HANDLING: GRABS REMAIN ESSENTIAL, BOTH ASHORE AND ONBOARD

REGIONAL REPORT

HIGHWAYS AND BYWAYS: GREAT LAKES & ST. LAWRENCE SEAWAY SYSTEM

2 4 5 11

22 25

26 26 31

40 42 51 75

92

BREAKBULK & BAGGING

BUMPER YEAR FOR BRAZILIAN PULP & PAPER: HIGH DEMAND/SUPPLY SHORTAGE = SURGING PRICES 131

DRY CARGO

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AUGUST 2022

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BULK CARRIER TRADE & FLEET OUTLOOK

Doubts about coal trade growth Increasing output from domestic mines has been a successful outcome of Chinese government policy, while consumption has moderated. Reflecting this and other influences, IEA analysts suggest that global coal trade will be slightly below last year’s volume.

espite some positive signs continuing, adverse influences affecting commodity imports around the world have become more prominent.

Consequently global seaborne dry bulk trade is being greatly restrained and prospects for further growth during 2022 have faded.

An International Monetary Fund update published at the end of July characterized the outlook for the world economy as “gloomy and more uncertain”, a comment which emphasizes the darkening background for dry bulk trade. The IMF estimates that global gross domestic product could slow to 3.2% in 2022, about half of last year’s recovery pace, while the outlook for next year has deteriorated.

Accelerating inflation, amid energy price rises and the war in Ukraine, are compressing living standards.

D

IRON

ORE

Lower steel production in many raw materials importing countries is limiting seaborne iron ore trade movements.

The trend has been especially evident in China, but steel industry weakness among other importers including the European Union, Japan and South Korea has also contributed.

During the first half of 2022 crude steel output in major producing countries declined by 4–6% compared with the same period of last year. India’s 9% expansion to 63.2mt was a notable exception (supporting coking coal imports). Japan and South Korea saw 4% declines to 46.0mt and 33.8mt respectively, based on World Steel Association data. The EU and China saw 6% declines, to 73.8mt and 526.9mt respectively.

Iron ore consumption was adversely affected by these changes.

COAL

Turmoil in the global energy market during recent months has benefited coal demand. Yet tentative indications still point to a fairly flat outcome for seaborne coal trade this year, compared with the previous twelve months.

Some forecasters suggest a slight decline, while others point to the possibility of a marginal increase.

Contrasting with stronger European coal import demand, China’s trend is negative.

A few weeks ago the International Energy Agency predicted that imports into China could fall by 45mt (million tonnes), nearly a fifth, in 2022.

GRAIN &

SOYA

Greater uncertainty about grain and soya trade has resulted from the problems surrounding Black Sea wheat and corn exports, and China’s imports apparently returning to more ‘normal’ levels. But the global outlook for trade is not entirely

a negative picture.

According to the US Department of Agriculture’s mid-July analysis, world trade in the 2021/22 trade year may be 1.5% lower at 654.0mt. In these calculations most of the trade is based on a October/September marketing year, while wheat (about 30% of the total) is based on a July/June year. In 2022/23 a 11mt or 1.7% increase to 665.2mt is expected to follow. However, this growth assumes a large rebound in China’s soyabeans imports after the current downturn, prospects for which are not yet entirely clear.

MINOR

BULKS

After last year’s reduction, seaborne trade in the aluminium raw materials — bauxite and the processed alumina — is expected to resume growth. The world total is estimated at over 170mt in 2021, and some indications point to at least a 5% increase during the current period.

BULK

CARRIER FLEET

Enlargement of the world fleet of bulk carriers will be restrained this year by lower newbuilding deliveries, as shown in table 2. The newbuildings total seems likely to fall by about a quarter and, despite probably lower scrapping, this reduction could contribute to growth in fleet deadweight capacity during 2022 decelerating to around 2.5%. Lower deliveries in the Capesize and larger segment are expected to be the biggest contributor to the overall newbuilding deliveries.

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TABLE 1: KEY ASIAN SEABORNE COKING COAL IMPORTERS (MILLION TONNES) Japan South Korea Taiwan China India Total of above

2017 71.9 32.2 11.1 69.9 50.3 235.4

2018 69.5 31.2 11.2 64.0 56.9 232.8

source: various & BSA 2022 estimates

* estimate

2019 69.4 31.5 10.9 74.7 56.5 243.0

2020 63.3 30.5 10.1 72.6 56.9 233.4

2021 63.6 31.4 11.1 54.7 71.8 232.6

2022* 65.0 31.5 11.0 52.0 75.0 234.5

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TABLE 2: BULK CARRIER NEWBUILDING DELIVERIES (MILLION DEADWEIGHT TONNES)

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Handysize (10-39,999 dwt) Handymax (40-64,999 dwt) Panamax (65-99,999 dwt) Capesize (100,000 dwt and over) Total % change from previous year

2017 3.4 10.8 8.9 15.3 38.4

source: Clarksons Research & BSA 2022 estimates

2018 3.1 5.6 5.6 14.3 28.6 –25.5

2019 3.1 8.2 11.4 19.0 41.7 45.8

2020 2.7 9.2 12.1 25.0 49.0 17.5

2021 3.5 7.0 8.6 19.0 38.1 –22.2

2022* 2.5 7.5 8.0 11.0 29.0 –23.9

* estimate

by Richard Scott, Bulk Shipping Analysis, Tel: +44 (0)12 7722 5784; Fax: +44 (0)12 7722 5784; e-mail: bulkshipan@aol.com

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NEWS TRADES & COMMODITIES

Europe seeks alternatives to Russian coal The decision by Russia to undertake a “special military operation” in Ukraine as of 24 February has impacted coal producers worldwide, as sanctions against the aggressor mean coal importers are now having to source alternative supplies.

The EU has totally banned Russian coal imports as of 10 August, at a time when the international coal market is already in a very tight situation. Euracoal, for example, now aims to secure 50mt (million tonnes) of coal from a combination of the US, Australia, Indonesia, Colombia and South Africa to replace Russian imports.

In 2021, Europe’s biggest coal users imported slightly more than 44mt, but had already bought 41mt in the first half of 2022 from the five main exporting coal producing nations.

Europe has mainly turned to the US, where thermal coal demand has fallen in recent years. Australia has been another good alternative source, since China refuses to import any of that country’s output as part of a diplomatic boycott. Its high heating value offsets the longer distance the coal now needs to travel.

The EU’s total ban on Russian coal imports means importers are having to seek alternative supplies.

Colombia is also being turned to by the Europeans, but lacks the production capacity to increase output sufficiently to meet all demand.

South African imports have double in the first two quarters, although there are doubts whether this increase can be maintained over the longer term, given rail

bottlenecks at Richards Bay and prevailing weather conditions.

Finally, while imports from Indonesia are higher than they were last year, the actual total was still below 2mt, because of the low grade coal it exports. Capacity in that country also remains limited.

Barry Cross

AUGUST 2022

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Vessels moving through the Ukraine ‘Grain Corridor’

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So far this month, at the time of writing in excess of 622,000 tonnes of wheat have left Ukraine through the so-called ‘Grain Corridor’.

In July, Russian and Ukrainian officials signed a deal with Turkey and the UN in Istanbul to allow ships to transport grain out of the region via a grain corridor.

The agreement allows Ukraine to resume shipments of grain from three key Ukrainian ports in the Black Sea — Odesa, Chernomorsk and Yuzhny — to

meet massive demand from the global market, while Russia would be able to export grain and fertilizers.

It is expected that 22 million tonnes of grain and other agricultural products stuck in Ukraine’s Black Sea ports due to the war will now be able to be transported out of the region via cargo vessels.

The conflict between Ukraine and Russia had halted exports, threatening world food security and caused prices of

Odesa is one of the three key ports permitted to ship grain as part of the ‘Grain Corridor’ agreement.

essential goods including cooking oils, fuels, fertilizer, wheat and barley to soar.

UN Secretary-General Antonio Guterres and Turkish President Recep Tayyip Erdogan oversaw the signing of The Safe Transportation of Grain and Foodstuffs from Ukrainian Ports Document. The agreement will establish a control centre in Istanbul, staffed by UN, Turkish, Russian and Ukrainian officials, that will run and coordinate the grain exports. The agreement includes provisions to check ships transporting the grain for weapons and for the safe passage of vessels along the grain corridor.

“This is an agreement for the world,” said Guterres at the signing ceremony. “It will bring relief for developing countries on the edge of bankruptcy, and the most vulnerable people on the edge of famine, and to help stabilize global food prices, which were already at record levels, even before the war,” As of 18 August, a total of 43 vessels had sailed for grain shipments, according to Turkey’s National Defense Ministry.

China stimulus programme central to immediate future of steel and iron ore Loading iron ore into the Lee A. Tregurtha laker at the Port of Marquette.

TRADE & COMMODITIES

Iron ore market

Kunal Bose according to the Bank, carries risks stemming from “persistent stress in the real estate sector with wider economywide consequences.”

What is also to be considered is risk vulnerability of China to what happens in the rest of the world. At the same time, the Bank feels that the full year growth could be higher than is currently projected provided there is no recurrence of the pandemic and stimulus programmes are rolled out to support the economy. Hopes for steel and iron ore trade rest on the $200bn fiscal stimulus programme through issuance of special bonds by provincial governments and the funds to be mainly used for real estate and infrastructure work.

Unfortunately, reports are now circulating that local governments facing financial crunch are spending such funds for

AUGUST 2022

the volume of mineral buying in the global market by the world’s second-largest economy.

Before dwelling on a more recent development relating to centralized buying of iron ore by China, which accounts for over 70% of the seaborne trade in the mineral, the immediate discussion focus will be the swings in ore prices between optimism and pessimism over the state of economy of that country.

In its June China Economic Update, the World Bank says it has lowered the country’s GDP growth by 0.8 percentage points to 4.3% in view of economic damage caused by the outbreak of Omicron and prolonged lockdowns in parts of China from March to May in pursuance of Beijing’s zero tolerance of the dreaded virus. While the likelihood of re-emergence of Covid-19 is not to be ruled out, the economy,

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Iron ore has a symbiotic relationship with iron and steel. This is because the mineral found in great abundance under the earth in many countries — particularly in Australia, Brazil and China and potentially in some West African states such as Guinea — is solely used in making the ferrous metal. From this, it follows that the demand emanating from the global steel industry will have a major bearing on iron ore prices at any given point.

Of course, the demand/supply balance will also remain an important price determining factor at all times. Since China has an overarching presence in the world steel industry, accounting for over half its capacity, production and consumption with broad dependence on imports of the principal steel-making raw material, a clinching consideration for price movements in the iron ore market will be

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TRADE & COMMODITIES www.drycargomag.com AUGUST 2022

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purposes other than infrastructure development.

Tata Steel CEO and managing director TV Narendran makes the point that the Chinese steel industry in order to reduce its carbon footprint is unlikely to have export focus any longer. That country will make steel largely for the domestic market.

But what about rise in steel products exports during May–June? According to Narendran, “that was temporary, a happening more in response to disruptions caused by Covid shutdowns. I expect production cuts by Chinese mills, for they have started losing money at current steel prices after buying metallurgical coal at prevailing high rates.” What Narendran has said about China finds support in its reduced imports of iron ore and production of steel in the first half of 2022.

First, iron ore. China’s General Administration of Customs says the country’s import of 88.969mt (million tonnes) of iron ore and its concentrate in June 2022 was down 3.548mt over May and 0.5% on the corresponding month of 2021.

And in the first six months to June 2022, imports of 535.748mt recorded a 4.4% year-on-year fall. However, in July Chinese imports were up 3.1% at 91.24mt from a year earlier. July imports were also 2.6% higher than in June. Analysts wonder if imports rise had links with restarting of some blast furnaces (BFs) idled earlier due to demand fall during Covid lockdowns.

According to Chinese metals information provider SMM, a total of 23 BFs resumed operation between 21 July and 1 August.

Earlier explaining the June import fall, SMM said this happened mainly because finished steel products market entered the off-season this year in advance, thanks to the onset of La Niña phenomenon causing demand destroying extreme weather.

China has seen the onset of monsoon in the south earlier than usual, while in the north demand in general, including steel products took a hit from the prevailing high temperature. To compound matters for iron ore trade, steel prices are down to the extent that Chinese steelmakers have found it wise to practise production discipline and focus on maintenance. SMM cautions that steel prices are likely to remain low through the off-season with working of steel mills further impaired.

Such developments will no doubt leave a negative impact on iron ore trade and also likely on freight rates. If the US and the West as a whole descend into recession and the promised stimulus package to revive economic activities does not materialize soon, then the outlook for both

Tata Steel CEO and managing director TV Narendran. iron ore and steel will remain uninspiring.

In the meantime, the Bank of England has given the warning that the UK is heading into a long recession later this year that is to last through to the end of 2023. High energy costs, the Ukrainian war and the anticipated 13% inflation are leading to the long recession in the UK and the rest of Europe and the US will not be spared the agony.

An industry official says: “The 27member European Union, the rest of Western Europe, Russia+CIS+Ukraine and the US are all major steel production centres. All of them have suffered production setbacks in the first six months of 2022 and if recession envelopes these economies, then steel will be a victim along with iron ore, no doubt about that.” The highly resource-rich Russia has an estimated 25bn tonnes of iron ore reserves, found mostly in Siberia and Ural, putting it in a vantage position to progressively grow exports, particularly to China after fulfilling requirements of the domestic steel industry. Traditionally a major supplier of ore to the EU, Russia is on course to raise exports to China, which too is keen to reduce its over-dependence on Australia for iron ore. Holding the world’s third-largest reserves of iron ore, Russia happens to be Europe’s biggest producer of the mineral at around 100mt annually. In the meantime, Ukraine, which is suffering increasing damage to its infrastructure and logistics due to Russian bombing, sold 21.26mt of ore last year or 2.5% of 884mt that Australia shipped.

The World Steel Association informs that global steel production of 158.1mt in June on a year-on year basis was down 5.9%. The 2022 first half production at 949.4mt shows a fall of 5.5% over the corresponding period of the previous year.

This could not have been otherwise since China’s first half production of 526.9mt suffered a setback of 6.5mt. In fact, among the major steelmaking countries, only India

could lift first half steel production by 8.8% to 63.2m tonnes. This is in sync with the post-Covid general economic recovery and New Delhi pushing development of infrastructure and building construction.

The world’s second-largest steelmaker, India, is self-sufficient in iron ore with production happening in a three-layered structure. First, the federal governmentowned NMDC is the single-largest producer of the steelmaking raw material; second, while Tata Steel and public sector SAIL have captive mines to take care of their entire requirements of ore, other steel majors are acquiring deposits at auctions held by government agencies; and third, there are merchant miners of different sizes.

In their search for raw material security, Indian steel majors are showing aggressiveness in buying iron ore mines, often at unjustifiably high prices.

Narendran had occasion to say that as his group was raising steel capacity at a rapid pace both organically and by way of takeover of ailing mills, he would naturally be inclined to expand his iron ore portfolio.

But he is not ready to pay fancy prices for new mines. In the meantime, there are quite a few cases where steel groups having won mines at auction by paying high premiums subsequently surrendered them for lack of operation viability. Director General of the Federation of Indian Mineral Industries RK Sharma does not approve of steelmakers expending “resources and energy” in iron ore mining. “Let them be focused on strengthening their industry and leave mining to merchant miners as is the case in the rest of the world,” says Sharma.

Having a single consumption point, that is making of steel and there being overpowering dominance of one single entity that is China, in seaborne trade, it has to be accepted that any concerns about steel demand for a given period will automatically have a disturbing impact on iron ore prices. Daniel Hynes, senior commodity strategist at ANZ, believes that iron ore will remain vulnerable to downside risk in the short term from “weaker steel demand from the construction sector in China. That’s a major headwind for the iron ore price.”

After all construction in general, including house building is the single largest consumption point for steel. Commodity price reporting agency Argus informs that the spot price for benchmark 62% ore for delivery to north China climbed to a record high of $235.55 a tonne in May 2021. But since it has sought lower levels reflecting the steel industry’s headwinds

political developments — consider fears of recession and fallout of Ukrainian war — is among the riskiest businesses. Australia being the world’s leading producer and exporter of iron ore, with exports having grown by 8mt to 876mt in 2021/22, the OCE production and price guidance is an important reference point for analysts.

The principal points in its June quarterly forecasts are: v Ore prices steadied in recent months in a US$110–140 range on hopes of Beijing supporting economic activities through stimulus programmes; v Australian earnings from the commodity are to fall from the ‘extraordinary levels’ seen in 2020/21 and 2021/22; v Ongoing recovery in supply from

Brazil and production gains in some other countries are to have a bearish impact on prices; and v Australia’s export earnings from the commodity are likely to ease from $133bn in 2021/22 to $116bn in 2022/23 and further to $85bn by 2023/24, reflecting progressive price moderation.

Of all the quarters, OCE’s March report alone gives a five-year price outlook for iron ore. The last one says: “Over the outlook to 2027, iron ore prices are projected to decline to lower long-run levels.” The reason cited is major steel producing countries such as the EU, the US and China are undergoing a transition to a “low emissions environment” and in the

TRADE & COMMODITIES

wobbling around $112 a tonne.

This is not surprising since no one knows when once again Chinese steel mills will revive the idled capacity. At the same time, iron ore producers and traders are nervously watching if Western economies, including the US will descend into recession and if that happens how deep will be the bite of that.

The Office of the Chief Economist (OCE) of Australian government has said in a report that Chinese property construction activity that alone constitutes around 30% of the country’s steel demand moved into the slow lane at the start of 2022 as Beijing took corrective steps addressing rising property prices, the sector’s high debt and failure of some groups to service debts. For example, Chinese property giant Evergrande and its subsidiaries have proved to be a serial offender in fulfilling their foreign and domestic debt servicing obligations. Evergrande, which is among the world’s most indebted group, has piled up debt liabilities exceeding $300bn.

Besides stunted GDP growth, imports defying high portside ore inventories have led Zhongzhou Futures analysts to say in a note that the Chinese iron ore market will likely be oversupplied through the second half of 2022. The phenomenon may continue to prevail in the first quarter of 2023.

A factor that will have a bearing on ore prices is the continuing high portside inventories — these were found to be around 160mt in midMarch, well above the five-year average and just off multi-year highs. Such inventories have come down since, but at close to 137mt these are high enough to have a bearish price impact. Inventories at current levels, however, provide a buffer for Chinese steelmakers against the risk of tighter market supplies. In any case, their ore requirements remain squeezed by low margins and high inventories of steel products.

At July end, however, steel inventories with key producers at 16.59mt fell 2.43mt over the previous month end. At one point this year, Chinese steel inventories rose to 20.5mt.

What is the price outlook for iron ore in the near and long term?

Price forecasting of commodities, which react to demand supply dynamics as also economic and

TRADE & COMMODITIES www.drycargomag.com AUGUST 2022

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process of more modest growth in BF based steelmaking and continued rise in Electric arc furnace (EAF) capacity.

Growing introduction of circular economy practices in clean environment conscious steelmaking countries thankfully includes China that generates about the same amount of CO2 as the next four countries combined. Ferrous scrap use through EAFs is found as the fastest route to decarbonization of the steel industry.

According to China’s 14th five year plan for a circular economy issued by the National Development & Reform Commission (NDRC), the Chinese steel industry will increase its scrap usage to 320mt by 2025 from 260mt in 2020. But what in the process the industry will have to contend with is the growing coal fired electricity bill that makes EAF running increasingly expensive.

To take care of the problem, China is promoting alternative sources of power, including hydro, solar and wind. WSA says: “Scrap plays a key role in reducing industry emissions and resource consumption.

Every tonne of scrap used for steel production avoids the emission of 1.5 tonnes of carbon dioxide, and the consumption of 1.4 tonnes of iron ore, 740kg of coal and 120kg of limestone.”

The global steel industry is using around 2bn tonnes of iron ore, 1bn tonnes of metallurgical coal and 575mt of steel scrap to make about 1.7bn tonnes of crude steel.

The US in its commitment to make more and more green steel is now producing 70% of the metal through EAFs. Green steel revolution is also sweeping Europe where nearly 45% of the metal is produced through scrap recycling. Many analysts expect the iron ore market will face demand squeeze as a fallout of more than 100 countries — the majority of these make steel — making commitment to

attain carbon neutrality by 2050. In this context, Fastmarkets says while demand in more normal times may buoy steel market, “but decarbonization and the focus on EAF and high-grade materials may negatively impact the iron ore market.” The demand growth for iron ore in India will continue to rise in step with BF-BOF route capacity expansion planned by all steel majors. But at the same time, Narendran, the acknowledged champion of circularity of used metals, is pushing for scientific collection and sorting of scrap and build a chain of EAFs across the country that will boost use of long construction steel.

The growing use of scrap in China and elsewhere will have a moderating impact on iron ore demand growth. But this is to happen when Fitch Solutions has forecast that global mine output growth will average 2.7% over the period 2022-26 compared with –1.3% in the previous five years. That growth rate will lift annual production by 361.7mt in 2026 over the current year.

Where will this growth come from? Fitch says Brazil, which has a good number of projects in the pipeline and wherefrom China wants to buy premium quality ore in Operations at South Flank mine in Australia.

larger quantities despite higher freight, is to raise production to 473.5mt by 2026 from an expected 409.6mt this year.

Whatever the analytics and research agency may say, much about Brazil production rises will depend on how quickly Vale, the world’s largest producer of iron ore, is able to leave behind the Brumadinho dam collapse, the grimmest environmental disaster the country ever experienced, and regulatory scrutiny.

Hopefully, Vale will not have to shut its 30mt Brucutu mine, the biggest in Minas Geras, once again. In the meantime, Vale has said that in the post-Brumadinho disaster and all the repair work since, it should be well placed to target production of up to 400mt in 2022. What gives comfort to Brazilian regulatory authorities is Vale’s declaration that by “by 2023, 70% of our production will be done through dry processing methods that do not require any type of dam.” In the meantime, the Samarco joint venture of BHP Billiton and Vale that was restarted in December 2020 is initially aiming production at 26% of the project capacity of 30.5mt. The target for 2026 is 60% capacity use.

Fitch is foreseeing Australian annual average ore production growth of only 0.4% during 2022–26 that will lift production by just 19.3mt. The world’s most cost-effective ore producer at between $25 and $30 a tonne, Australia may be wary of Chinese demand falling and that is to leave it with considerable idle capacity. Even while political relations remained strained, Australia was responsible for more than 60% of Chinese ore imports of 1.12bn tonnes, down from the previous year’s record high of 1.17bn tonnes.

Beijing is discomforted by Australia’s growing military and otherwise growing closeness with the US more recently reflected in Canberra joining Quad and Aukus — this defence partnership will

iron ore exploration, mining and processing. The country has around 500 steelmaking companies and they make their own purchases of raw materials, including iron ore. As against this, there is a great degree of concentration on the side of sellers. Take Australia: production and global trading of ore is dominated by Rio Tinto, BHP and Fortescue Metals. In Brazil, the initiative rests with Vale. Other producing countries from South Africa to India take price guidance from these industry behemoths. To start with, the new official outfit will do ore buying on behalf of government-owned steel giants Baowu Steel, Ansteel, China Minmetals and Shougang. Very likely, in case the unified buying platform is able to drive good price bargaining with iron ore suppliers using its buying muscle, then private steel groups will approach CMRG to also procure the

mineral on their behalf.

There is already a high level of concentration on the supply side with four leading miners — three from Australia and one from Brazil — having control over half the world’s iron ore resources. The Financial Times has said in a report that Chinese central buying may start operation by the end of the year in the hope that its clout will give it the power to force cheaper prices. It is highly unlikely in response to the proposed centralized Chinese buying the sellers will form a cartel. In fact, representatives of leading mining groups have said in public and private that what China is planning to do will no doubt be a watershed development in iron ore trade, but finally the market will sort out where the ore prices need to be based on supply and demand. In 2008, the process of migration from long-term contract for iron ore buying to spot purchases happened without much disturbances to the market. (Long term contract was an unfair practice since China’s views were not considered in fixing prices, in spite of it being the largest importer.) Similarly, it is unlikely that this time it will come down to a case of who blinks first — iron ore industry or CMRG. More than one analyst has said centralized buying could lead to inefficiencies, bureaucracy and also corruption. On the other hand, Fortescue CEO Elizabeth Gaines has said her company will stay course on optimizing distribution channels to meet the needs of the Chinese steel industry. That should be of comfort to Beijing.

TRADE & COMMODITIES

allow Australia to build nuclear-powered submarines with US technology. China says Aukus “seriously undermines regional peace and stability and intensifies the arms race in the region.”

The recent Taiwan visit by US House speaker Nancy Pelosi has only helped in deepening Beijing distrust of its by far the largest supplier of iron ore. In the circumstances, it is no surprise that China will seek to reduce its dependence on ore imports from Australia over a period of time by way of raising domestic production; step up purchases from Brazil, South Africa and other ore-exporting countries; develop mines and infrastructure to facilitate egress of iron ore to ports for shipment to Chinese ports; and step up scrap-based steel production.

Among its investments to develop mines abroad to gain security of supply, the biggest one is Simandou iron ore mine in Guinea, which according to Rio Tinto will be able to produce annually 100mt of ore at optimum capacity use. What is more, Simandou ore is of very high quality. For China, challenges to boost production within the country are its high mining cost of around at $90 a tonne and poor quality of ore requiring beneficiation.

In the meantime China, in its search to exercise control on ore purchases commensurate with its size, has recently minted a state-owned outfit China Mineral Resources Group (CMRG) with initial capital of 20bn yuan ($3bn) whose comprehensive mandate includes centralizing buying of iron ore, overseas investments in ore deposits and domestic

Mixed fortunes for Brazil’s iron ore market — and for the rest of the world? the middle of last year. They then collapsed to about $90 per tonne at the turn of the year, before rising to $165 per tonne in April, and returning to $200 per tonne again in May. Vale plans to increase production from the 320–380mt of the past five years, to 400mt by 2027.

All has not been plain sailing. Outbreaks of Covid-19 have had a considerable impact on production, as has inflation and the war in Ukraine. Several mines in Brazil, notably the Itabira mine in Minas Gerais State, have had to shut down for several weeks, as staff were off sick.

Mines in several other countries have also had to cut operations because of the impact of Covid-19. Because of the severe quarantine restrictions in China due to Covid-19, steel production there has been badly affected, so less ore has had to be imported. Stocks of ore are unusually

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mine, left from the port of Ponta da Madeira, most of the remainder left from Tubarao, a small amount used the port of Guaiba.

Of the 332mt of ore exported last year, 199.6mt were produced by Vale. The majority came from the Carajas mine and was shipped from the port of Ponta da Madeira. Most of the rest left from the port of Tubarao, with a small amount leaving from Guaiba.

In the first five months of 2021, 240,000 tonnes was exported, while only 150,000 tonnes was exported in the same period this year.

With high sales and prices, Brazil made a profit of $40 billion in the first quarter of this year (which was 53% less than in the same period of 2021).

Prices have fluctuated enormously in recent months.

They peaked at a record $200 per tonne in

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Mixed news for iron ore as, although the industry had an excellent year in 2021, this may prove to have been its peak, writes Patrick Knight. Many indicators predict that the future will be less bright than some analysts suggest.

The year 2021 was a record one for the world’s iron ore industry and Brazil’s Vale, (which celebrated its 80th birthday this year) also did extremely well.

Vale produced a record 288mt (million tonnes) of ore in 2021, out of a total Brazilian output of 332.2mt. Of the total produced, 30.5mt was sold on the domestic market, (the majority of that by Vale). This compares with the 23mt (again most sold

by Vale) on the domestic market in 2021.

Between January and May of 2021, 200mt of ore was produced, while only 114mt has been mined in the same period this year.

The 301mt of ore produced at the Carajas

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low in China.

Because of the rains which normally occur at the turn of the year, the rail line linking the Carajas mines to the port of Ponta da Madeira was shut for several weeks.

The impact of Covid-19, as well as the accelerating inflation (partly due to the war in Ukraine) is having a severe impact on the world steel industry, and consequently on iron ore.

The number of motor vehicles made in 2021 was 47% of the number produced in 2020, while sales of most consumer goods was also down.

Activity by the construction industry also slowed. Seven per cent 7% less steel was made in January worldwide, as had been in the same month of 2021.

During 2021, Brazil exported 332mt, more than half of which went to China (by far its leading customer). In the first quarter of this year, 64mt was shipped, compared with the 68mt exported in the same period of 2021.

Recent years have seen major innovations. The National Steel Company, a major producer of steel, and also producing all the ore it uses in its own mines, has decided to switch from diesel-powered, to electric vehicles. It has taken delivery of two prototype vehicles from China and plans to convert 64 of the heavy vehicles used to carry ore from the mines to the processing plants, as well as to convert 100 lighter vehicles. It is even considered in some quarters possible that mines will need little manpower to operate in future.

Many new companies are being attracted to Brazil’s prosperous iron ore industry. One of them is the British-owned The Itabira mine had to shut down for several weeks due to the impact of Covid-19.

BRAZILIAN PRODUCTION, DOMESTIC CONSUMPTION & EXPORTS FOR THE PAST FOUR YEARS

Year 2017 2018 2019 2020 2021

Production 372.698 382.526 326.797 317.888 301.549

(million tonnes) Domestic 26.201 28.940 25. 434 23.216 30.549

Export 346.698 353.587 301.363 294.672 332.166

Source: Sinferbase.

JBS construction company, a major supplier of equipment for Brazil’s mining industry.

JBS has bought two mines adjacent to the Carajas complex. The purchase has been done jointly with Brazil’s Cosan company, (which operates in Brazil’s sugar cane and energy distribution sectors), together with Cosan’s partner Shell. Initially the two mines will produce 2.7mt of ore. But output will soon be increased to 10mt.

Cosan has also bought loading facilities from the Chinese owned CCCC company.

The Bamin company, which has mines in Bahia state, is to increase output there to 10mt. Bamin’s plant is adjacent to the mines owned in the region the Anglo American company, whose slurry pipeline Bamin will be able to utilize to get ore to the port of Acu. A trade dispute between Australia and China is under way. But because Australian ore is so important to China (it is responsible for 65% of China’s ore needs), no action has been taken. There are three mining companies in Australia, Fortescu, Broken Hill Property, and Rio Tinto Zinc (RTZ). The largest of them, RTZ, has

recently overtaken Vale to become the world’s largest ore exporting company.

Recent years have seen major innovations. The National Steel Company (CSN), a leading Brazilian steel company — and which also mines the ore which provides the company with all its needs — has decided to convert all of its fleet of vehicles from using diesel, to electricity. It has bought several prototype vehicles from China, and in the next few years, will convert 64 of the very heavy vehicles which ferry ore from mine workings to processing plants, as well as 100 smaller vehicles.

Many new companies have been attracted to the mining industry in Brazil in recent years, encouraged by the high price of ore. As well as JBS’s acquisition, with its partner Shell, of the two mines adjacent to the Carajas project, Cosan has also bought loading facilities from the Chinese CCCC logistics company. The Bamin Company in Bahis state, is to increase output at its mine there to 10mt. The Bamin mine is close to that of Anglo American, so Bamin will be able to use Anglo’s slurry pipeline, to get its ore to market.

Although Vale has predicted that it will be producing 400mt by the late 2020s, this in fact looks extremely unlikely. The table shows that production ore in Brazil peaked in 2018. Since then it has fallen to just over 300mt. There are various reasons for this fall. A major one is the increasing availability of scrap. Now that China’s economy is reaching maturity, numerous vehicles (sales of which there are now leading the world) have started to be scrapped, as have a large number of consumer durables. The rate of civil construction, and infrastructure works is falling. Although growth may continue in some underdeveloped parts of the world, notably in Africa, it can be argued that the age of sustained growth has come to an end, and with it the demand for steel. It remains to be seen, of course, but it is a DCi valid hypothesis.

TRADES & COMMODITIES

Petcoke market — roiled by change when do we get back to the new normal?

Ben Ziesmer, Pedro Mackay & Rituraj Jha, Advisian

tonnes]), which makes it easier to limit sales to higher value markets — USWC exports are dominated by China and Japan which typically each receive about 40% of USWC exports. On the other hand, USGC export destinations are varied with exports typically going to 40+ different

countries in a year.

Price volatility has been, and continues to be, driven by a multitude of issues including changing coal prices, trade policies, and major geopolitical events.

Government-imposed shelter in place (lockdowns) in response to the Covid-19

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The petroleum coke (petcoke) market has been roiled by remarkable change over the last four years. The most obvious indication of this rapidly changing market has been prices (see Figure 1 — US FuelGrade Petroleum Coke Prices). We focus on United States fuel-grade petcoke export prices because the US fuel-grade petcoke provides approximately 75% of the seaborne petcoke trade.

Fuel-grade petcoke has lower pricing and is generally lower quality than petcoke used for carbon applications (see Coking Background for more information).

Figure 1 (right) illustrates that US West Coast (USWC) petcoke prices (unless specified otherwise, all references to petcoke prices refer to fuel-grade petcoke prices) are higher, sometime substantially higher, than US Gulf Coast (USGC) petcoke prices. USWC petcoke prices are higher because USWC petcoke typically has much lower sulphur content than USGC. This allows it to go into higher value markets such as the steel industry and the glass industry. Export volumes are much lower (<6 vs. 24+ million MT [metric

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Join us at the 21st Annual Advisian Petcoke Conference March 17 - 18, 2023 The Westin San Diego Gaslamp Quarter, San Diego, California

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pandemic produced huge economic disruptions. Global GDP shrank by 3.3% in 2020, by far the largest decrease in global GDP since the Second World War1. Almost simultaneously with implementation of lockdowns, there was a historic crash of oil prices in March 2020 followed by unprecedented oil production cuts by OPEC+2. These events impacted petcoke production and trade flows. However, before delving into these issues, let us give a brief background on petcoke.

COKING BACKGROUND Petcoke is produced as a by-product in many oil refineries. Crude oil is first processed in an atmospheric distillation unit, followed by a vacuum distillation unit.

The heavy residuum exiting the bottom of the vacuum tower (i.e., vacuum tower bottoms, or VTB) can be used to make asphalt, residual fuel oil (RFO)3, or used as feedstock for a coker (see Figure 2 — Simplified Coking Refinery Flow Diagram) or other bottoms upgrading technology.

For decades, the refining industry has faced the problem that demand growth for transportation fuels (i.e., gasoline, diesel, jet fuel) has been, and continues to be, much greater than for RFO. To put it another way, people are buying cars and trucks and flying on airplanes, but no one is building RFO-fuelled power plants or industrial facilities. In response to this problem, the refining industry developed various technologies to upgrade VTBs to produce more valuable light products instead of RFO. Cokers have been, and continue to be, the dominant bottoms upgrading technology. They allow refiners to reduce production of RFO per barrel of crude oil

[2] OPEC+ is a combination of the 13 members of OPEC (Organization of Petroleum Exporting Countries) and a Russian-led coalition of ten additional petroleum exporting countries.

[3] Typically, about 30% high value diluent such as light cycle oil needs to be added to meet RFO viscosity and density specifications.

[5] Technically, all petcoke that has not been calcined is green petcoke (GPC). However, within the petcoke industry, the term GPC is usually only used for petcoke that is used as calciner feedstock.

PETCOKE MARKETS Petroleum coke (petcoke) is unusual because it is used not only as a heat source (i.e. fuel) but also as a carbon source in metal production and chemical processes.

Petroleum coke used as a carbon source requires better quality (e.g., low sulphur and metals content) and commands higher prices, driven by different factors than fuelgrade petcoke prices.

Green5 petcoke used as a carbon source is usually upgraded by calcination — a process that uses heat to remove moisture and volatile matter from petcoke. This process improves critical physical properties and converts green petcoke into an electrically conductive form of carbon.

Calcined green petcoke is referred to as calcined petroleum coke (CPC).

The production of carbon anodes for aluminium smelting is the largest market for CPC. However, there are other uses for CPC. These include the production of carbon electrodes for electric arc furnaces, and for titanium dioxide (TiO2). It can also act as a recarburizer (i.e., carbon raiser) in the steel industry, and, very recently, as a

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[4] Since the early 1990s, cokers have also been used in upgraders that produce various grades of synthetic crude oil (SCO) from bitumen or ultraheavy crude oils. This type of upgrader exists in Venezuela where ultra-heavy Orinoco Belt crude oil is upgraded and is exported as lighter crude oils, and in Canada where upgraders are used to produce SCO from the bitumen derived from Alberta oil sands. Upgrading economics are driven by crude oil economics, not refining and coking economics.

worldwide, and the overall global crude slate got heavier. Consequently, petcoke production grew much faster than crude oil demand (1995–2018 CAGR = 6.6% for petcoke vs. 1.6% for crude oil).

Refineries run a blend of different crude oils (known as the crude slate), and choices of crude oils which are in the crude slate significantly impacts the quantity and quality of petcoke that is produced. The selection of the crude slate is driven by a complex series of factors including the capabilities of the refinery processing units, crude oil pricing and availability, and demand for refined products.

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[1]“The ISA Global Economic and Risk Outlook”, Michael Weidokal, Advisian webinar “5 Things to Watch for in 2021”, June 15, 2021

processed and bridge the gap between the growth in demand for light products and RFO demand growth. To summarize, the primary purpose of a coker is to reduce the production of RFO by converting heavy VTBs into high value transportation fuels (gasoline, diesel, jet fuel, etc.) with petcoke produced as a by-product of the coking process.

It is also important to recognize that the percentage of VTBs produced as a result of refining crude oil increases dramatically as the crude oil processed in the refinery gets heavier (i.e., lower specific gravity). For example, about 10% (by weight) of light Arabian crude oil becomes vacuum tower bottoms, whereas almost 40% of very heavy Mexican Maya or Alberta crude oils become vacuum tower bottoms.

Consequently, the percentage of crude oil that becomes petcoke increases dramatically, and refineries that are designed to process heavy crude oils are much more likely to have coking capacity (or other VTB upgrading technology) than refineries designed to refine lighter crude oil.

Traditionally, cokers are installed in oil refineries to convert VTB and other heavy residual oils into higher-value light transportation products (e.g., gasoline, jet fuel, diesel fuel). Until recently, a coker almost invariably increased refinery profitability because the yield of high-value transportation fuels is maximized and the production of low-value RFO is minimized4.

While the coking process has been in use since the 1930s, petcoke production has seen its largest growth since 1995 (production: 1995= ~30 million WMT, 2018 =~140 million WMT) principally because light transportation petroleum product demand grew faster than RFO demand

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PETCOKE PRODUCTION TRENDS

[6] Coal (and petcoke) is typically pulverized to approximately the consistency of talcum powder to facilitate the pulverized (suspension) fuel combustion process used in the power, cement, lime, and many other industries.

[8] MARPOL 2020 refers to the International Maritime Organizations’ MARPOL (International Convention for the Prevention of Pollution from Ships) Annex VI, Regulation 14 rule limiting sulphur oxide (SOx) emissions globally from seaborne vessels that went into effect 1 January 2020.

Since coking economics tends to improve when the discount of HS RFO to crude oil increases, it was expected that coking economics would be very favourable and petcoke production would be robust.

This briefly turned out to be the case as US Gulf Coast (USGC) petcoke production rose significantly during the fourth quarter of 2019 and in January and February of 2020.

Then governments around the world began implementing shelter in place orders (i.e., lockdowns) to control the Covid-19 pandemic. This caused refined product demand to decrease significantly, though, at first it was not entirely clear just how much demand was going to drop overall. As commercial passenger air travel plummeted, automobile use fell (especially for commuting), industrial production slowed, and freight traffic declined, demand for refined products rapidly fell.

Consequently, refinery utilization rates (a.k.a. run rates) were reduced to match refined product production with reduced demand, and globally petcoke production fell by 8.5%.

However, not every region of the world

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[7] Lime kilns are very similar to cement kilns and have the same inherent capabilities to successfully burn petcoke like cement kilns.

the same as 2018 because increased production outside of the three top producing countries (Rest of World – ROW) was offset by reduced production by the US (–6%), while production in China and India was essentially unchanged.

Because the crude slate for US coking got lighter due to increased tight light oil (i.e., shale oil) production, US petcoke production decreased. US tight light oil (TLO) has very few bottoms and produces very low quantities of petcoke per barrel crude oil.

Going into 2020, the refining industry was expecting that bunker demand for the consumption of high-sulphur residual fuel oil (HS RFO) would plummet to comply with MARPOL 20208. The maritime industry consumed 3.2‒4.0 million barrels per day (180‒230 million tonne/year) of high-sulphur residual fuel oil (HS RFO) in 2018 and 2019, and this market was important to many refineries as an outlet for their HS RFO. It was expected this reduced HS RFO demand would cause a glut of HS RFO, and the price discount of HS RFO, in contrast to crude oil prices, would increase significantly.

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Global petcoke production is dominated by three countries — China, India, and the United States (see Figure 3 – Petroleum Coke Production). Production trends for these countries has been markedly different over the last five years. In 2019, global petcoke production was essentially

TRADE & COMMODITIES

source of synthetic graphite in battery production.

A little over 30% of the petcoke that is produced is sold into these higher valueadded markets for higher quality petcoke; the remaining production is used as a fuel source. The carbon-source-market share has been growing recently as demand in these markets has been growing faster than overall petcoke production.

Fuel-grade petcoke is used in a variety of industries — primarily as a substitute for coal, but sometimes for fuel oil. Petcoke has higher calorific value (i.e. kcal/kg) and much lower ash content than coal.

However, it is more difficult to burn, has higher sulphur content, and is more difficult to pulverize6, so it typically sells at a discount to coal. The cement industry is the largest consumer of fuel-grade petcoke because cement kilns are particularly well suited to burn petcoke, and inherently capture approximately 90% of the sulphur oxides (SOx) emissions resulting from burning petcoke.

The next largest demand segment for fuel-grade petcoke is the ‘other industry’ category, which includes lime7, brick, calcium carbide, and glass production, as well as gasification of petroleum coke to produce chemicals (e.g., ammonia, urea ammonium nitrate, etc.). The remaining categories in declining market size are power generation, long-term storage, and iron & steel production. The ‘long-term storage’ category refers to petcoke produced as a by-product of upgrading bitumen (primarily Western Canadian oil sands) where the petcoke is placed underground as part of the reclamation process associated with the open cast (open pit) mining of bitumen.

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was impacted equally in 2020. Production decreases varied regionally as lockdown strategies were significantly different from country to country. Petcoke production decreases ranged from 5% (ROW) to 28% (India) depending on the extent of lockdowns and start-up of new cokers in ROW. Global petcoke production rebounded (+3.0%) in 2021 as Covid-19 lockdowns eased but remained below 2018 and 2019 levels. India was key to the global rebound as its petcoke production increased by 14%. China and ROW production increased each increased 5% while US production decreased 4%. Much of the US production decrease was caused by weather events including Arctic Storm Uri in Texas and Hurricane Ida in the Louisiana Gulf Coast.

OPEC+ PRODUCTION CUTS —

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SURPRISINGLY IMPORTANT TO PETCOKE

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In April of 2020, OPEC+ members struck a historic deal to cut their combined crude oil production by 9.7 million bbl/day during May and June of 2020. They also agreed to reduce their production cuts to 7.7 million bbl/day (i.e., increase production by 2.0 million bbl/day) from July 2020 through December 2020. In January 2021 OPEC+ increased production by 0.5 million bbl/day, then continued with uneven monthly production increases until by July 2021 when production was 1.9 million bbl/day higher than in December 2020 (monthly production cut reduced to 5.8 million bbl/day).

These crude oil production cuts were especially important to the petcoke market because OPEC producers tend to preferentially cut heavy oil (which trades at a discount to lighter crude oils) production to maximize revenue from reduced oil production. As we noted previously (see Petcoke Background), migration to lighter crude oil also means less petcoke will be produced from each barrel of crude. It took some time for the impact of OPEC+’s production cuts to work its way through the crude oil market before the OPEC+ production cuts impacted refinery crude slates as huge inventories were built in March 2020. However, in time, crude slates became lighter, and less petcoke was produced. For example, USGC refinery utilization in March 2020 was 90.2%.

Following Arctic Storm Uri, USGC refinery utilization had recovered to 87.5% by April 2021 but petcoke production was 10% less than in March 2020.

From August 2021 through June 2022 OPEC+ members continued increasing production evenly by ~0.4 million bbl/day

monthly, then by ~0.65 million bbl/day in July and August 2022 leaving no more production cuts still in place. OPEC members claim to have slim spare capacity, and we do not expect significant changes in the global crude slate gravity (i.e., weight) due to OPEC production increases going forward.

Global petcoke production is forecast to increase 9% in 2022, driven by very strong growth in India and strong growth in the US. India’s production increase is driven by sharply increased refinery utilization rates and migration to heavier crude slates due to OPEC+ production cuts being phased out. The US production increase is driven by increased refinery utilization rates, migration to heavier crude slates, and assumption that there will be no unusual weather-related production outages in 2022 like there were in 2021.

IMPACT OF RUSSIA/UKRAINE CONFLICT With the onset of Russia’s invasion into Ukraine, a coalition of countries (EU, Canada, US, Japan, Australia, and Singapore) imposed numerous sanctions on Russia, including a ban on importing Russian oil (crude and products). Russian crude oil exports to these countries declined quickly, though the timing of when a full ban will go into effect varies. In the case of the EU, a complete ban goes into effect at the end of 2022 or early 2023, depending upon the category of imports. US President Biden issued an Executive Order on 8 March, banning the import of Russian oil, liquefied natural gas, and coal into the United States. The ban has had little impact on US petcoke production other than causing the sulphur content of petcoke produced at a few refineries to increase.

Initially, the sanctions of Russian oil

supplies were expected to severely dent global crude oil supply, but this has not materialized. Increased exports of Russian oil to China and India have negated lower exports to countries imposing sanctions.

India and China are taking advantage of highly discounted Russian oil due to sanctions. The US EIA in its latest report expects Russian oil production to average 10.85 million bbl/day in 2022, compared to an average of ~10.8 million bbl/day in 2021, which implies sanctions have had virtually no impact on Russian crude oil production.

OPEC in its latest monthly report also shows a similar story by predicting Russian oil supplies to average 10.88 million bbl/day in 2022. Using the US experience as a guide, we expect that the ban on Russian crude oil will have minimal impact on petcoke production other than some shifts (down as well as up) in petcoke sulphur content.

Prices for traditional ‘marker’ thermal coal prices (e.g., Northwest API2, South African [9] Commodity, freight, and applicable tariffs plus GST Compensatory Cess for coal.

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COAL MARKET- REMARKABLY DISJOINTED

AP4/RB1, Australian Newcastle) have soared to historical highs. The primary driver appears to be anticipation of a supply shortage due to sanctions on Russian coal imports into the EU. On 8 April 2022, the EU announced its fifth package of sanctions against Russia in response to its invasion of Ukraine, under which all deals for Russian coal had to be finalized by April 9 and all Russian coal imports had to be completed

by August 10, 2022. The ban was applicable to all coal and solid fuels originating from Russia. In 2021, Russia accounted for 43% of EU coal imports. The market appears to be expecting the continent will fall short of coal once the coal ban is in full force.

Further, the natural gas crisis in Europe has also impacted the coal market by encouraging additional thermal coal demand to cover for the shortfall in natural

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The coal market is important to the petcoke market because fuel-grade petcoke typically is a substitute for thermal (steam) coal. The seaborne thermal coal market is approximately 25 times larger than the seaborne fuel-grade petcoke market, so the petcoke market cannot meaningfully impact seaborne thermal coal prices. On the other hand, thermal coal prices act as cap on petcoke prices as buyers will switch from petcoke to coal if petcoke is not economically attractive vis-à-vis coal ($/MMBtu delivered basis).

The primary market for imported fuelgrade petcoke in India is the cement industry which will quickly switch between thermal (steam) coal and petcoke, depending on relative economics (see Figure 4 – US Petcoke Exports to India versus Cost Competitiveness). For example, USGC petcoke was at a significant discount to coal ($/MMBtu landed9 basis) from October 2019 through January 2020, and exports to India increased dramatically in February and March of 2020.

Conversely, from July 2020 through September 2021 petcoke was more costly than thermal coal, and export volumes were very low.

As USGC petcoke production has recovered to more typical levels it has become necessary for some USGC petcoke to be sold into India.

TRADE & COMMODITIES

COAL AND PETCOKE PRICES

gas supplies. Responding to sanctions, Russia demanded payment for natural gas in rubles. Some countries objected and Russia stopped natural gas supplies to Poland, Bulgaria, the Netherlands, and Denmark, plus severely curtailed supplies to Germany through the Nord Stream 1 (NS1) pipeline.

In response, some European nations restarted mothballed coal-fired power generation.

Consequently, several international agencies expect European thermal coal demand in 2022 to increase 5–10% Y/Y. While European coal demand is poised to rise in 2022, India coal imports could easily exceed Europe’s increased seaborne thermal coal demand. While India’s total coal imports of all-types during the first seven months of 2022 are only up by ~8 million MT (+6%), the Indian government is planning to import an additional ~76 million MT of thermal coal during Indian Fiscal Year 2022-2023 (1 April 2022 – 31 March 2023). These planned coal imports will be over and above the normal imports.

However, coal imports by China, which imported 324 million MT of coal in 2021, have slowed in 2022. During the first seven months of 2022, China’s total coal imports fell by 18% Y/Y (~30 million MT). China has ramped up its domestic coal production significantly and is on pace to produce ~7–9% (+285-365 million MT) more coal in 2022 than in 2021.

Discounts for 5,500kcal/kg vs.

6,000kcal/kg ‘marker’ Australian and South African coal prices are at unprecedentedly high levels.

Historically, increasing discounts have been an indication of weaker underlying demand. Another sign that suggests benchmark thermal coal

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TRADE & COMMODITIES

prices are inflated is the fact thermal coal prices are significantly higher than coking coal prices, which is unprecedented and surprising since coking coal is higher quality than thermal coal. Meanwhile, discounts for Russian Baltic and Black Sea coals vs.

Northwest European thermal coal (i.e., API 2) are within the range of 60–70%.

Like the ban on importing Russian oil, the ban on importing Russian coal has had more impact on where Russian coal is exported than on the volume of Russian coal being exported. Russian coal has been exported at heavily discounted prices to many countries including China, India, and Turkey.

About the authors Ben Ziesmer (Senior Adviser) Ben is a widely recognized authority in global petroleum coke consulting. He successfully led Advisian’s Fuel Grade Petcoke practice for many years and now acts as a senior advisor to the team. Ben continues to be a key contributor to Advisian's Pace Petroleum Coke Quarterly, as well as providing support to single client consulting projects, the annual Advisian Petcoke Conference and other Advisian petcoke related publications.

IMPACT ON PETCOKE MARKET Recently USGC petcoke prices have appeared to be very attractive compared to traditional ‘marker’ coal prices. However, in key Mediterranean markets such as Turkey, USGC petcoke also has to compete against heavily discounted Russian coal (see Figure 5 – Thermal Coal & Petcoke Prices). It is this competition that has constrained upward movement of USGC petcoke prices. Additionally, petcoke has lost market share to Russian coal in the Mediterranean market, leaving additional volumes of USGC petcoke to be sold into Asia (principally India).

LONGER TERM OUTLOOK – PETCOKE

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MEGATRENDS

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Developments in specific industries as well as the evolution of the energy transition are expected to significantly shape the petcoke industry going forward. We refer to these developments as petcoke megatrends and are summarized as follows: v Pace of the energy transition from oilbased transportation fuels to renewable fuels and electric vehicles. v Repurposing of petroleum refining assets to renewable fuel. v Increased demand for battery production to support increased use of electric vehicles and renewable power generation. v Growth in aluminium production (primary and recycled). v Inert anode (also known as ‘carbon free’) aluminium smelting technology (eliminates current need for calcined petcoke in consumable anodes).

Each of these trends will have a different impact on petcoke production or consumption and the net effect will determine the future course of petcoke.

These megatrends will be discussed in more detail at our upcoming 21st Annual Petcoke Conference.

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Pedro Mackay (Principal Consultant) Pedro has 29 years of experience working in various energy-related fields such as oil exploration, solid fuel purchasing and trading including petroleum coke and coal, ocean freight chartering, consulting in the petroleum coke industry, and raw materials purchasing in the coke calcining industry.

Through his career, Pedro has held responsibilities focused on purchasing and supply chain aspects related to solid fuels for cement plants and raw materials for calciners, solid fuel trading, ocean shipping, and consulting. He holds a bachelor’s degree in Mechanical Engineering from the University of Texas at Austin and a Master’s in International Management from Thunderbird.

Rituraj Jha (Consultant) Rituraj is Mumbai-based consultant for Houston Market Services team (Advisian) and is a contributing author for Advisian’s Pace Petroleum Coke Quarterly© (PCQ) and Calcined Petroleum Coke Report© (CPC). He is also involved in numerous petroleum coke market studies and is the team’s regional expert on Indian petroleum coke market. Background-wise, Rituraj is a chemical engineer from one of India’s top engineering colleges, with a specialization in petroleum refining.

Advisian (formerly Jacobs Consultancy, Inc. and previously The Pace Consultants, Inc) has published the Pace Petroleum Coke Quarterly© since 1983. The report has been published monthly since January 1985 and is considered the global authoritative source of petcoke market information.

services for incoming and outgoing cargo flows for break-bulk and project cargo can also be offered. These include: v customs formalities and transfer via all modes of transport; v loading and unloading of barges and seagoing vessels; v transshipment; and v loading of containers and special equipment.

CREATIVITY IS MUST Creativity is an important requirement for the teams at Hudig & Veder. It is used effectively to provide the best logistical answers to the customer’s needs.

Furthermore in the maritime business, flexibility is key. A good team and an international network are both important in such circumstances. Fortunately, all the Hudig & Veder teams have the knowledge and experience to deal with all circumstances in the right way. This is why the high quality of service that Hudig & Veder’s customers are used to, and have grown to expect, can be guaranteed.

OUR ABC-CONCEPT As Hudig & Veder Group, we are keen on creating an ultimate logistical plan for our customers by combining different departments and disciplines within our ABC-concept.

Our ABC-concept can therefore be best described as an existing supply chain under control of Hudig & Veder.

Agencies, Chartering, Forwarding, Bulk & Projects, we offer the optimal collaboration between our business departments.

SHIPPING & TRANSPORT

Hudig & Veder can safely be described as a Europe, Hudig & Veder can offer services one-stop-shop for logistics solutions. The on a global scale. Customers can trust that company specializes in the worldwide their business is taken care of through transport and storage of various types of perseverance and creativity. Customers cargoes such as (dry) bulk, breakbulk and know that they can rely on Hudig & Veder project logistics. to provide them with fitting solutions for all Knowledge and experience are crucial their logistical challenges. pillars of Hudig & Veder’s services, and are a big part of the success of the company. ABC-CONCEPT However, developments in the IT field also The Hudig & Veder ABC-concept consists play a big part. Examples of this include of optimal setting up processes as co-operation and efficiently as possible, short communication and realizing data links lines between the r we prefer with customers. divisions: Agencies, ‘At Hudig & Vede ’ ch Hudig & Veder was Chartering and oa pr ap al on a pers founded in 1795, since (Break) Bulk. which time it has grown Therefore, at the into the logistics giant it drop of a hat, complete now is. Every day, about 100 and full services can be offered and people are hard at work at different custom-made logistical plans can be divisions: Chartering; Bulk; Forwarding; and provided. One of those services is Agencies. With its head office centrally warehousing. Hudig & Veder has its own located near the Port of Rotterdam, but warehouse in the Laurens harbour in supported by global partners and through Rotterdam. In various other collaborations joint ventures in the Middle East and with partners, terminal and storage

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One-stop shop for logistics solutions with Hudig & Veder

The vessels were already in production at Damen’s specialist tug building facility, Damen Song Cam Shipyard, Vietnam, when the order was placed, ensuring the rapid delivery.

Other factors in Fairplay’s decision to source its latest vessels from Damen included their design and quality and the Damen Triton digital platform for the optimization of operational efficiency.

Joschka Böddeling, Damen Sales Manager, said: “We are very pleased to be supplying Fairplay with these state-of-the-art tugs.

Fairplay has operated Damen-built vessels for many years and we were delighted when last year they purchased a Shoalbuster 2711 for general operations in the North and Baltic seas.

This latest contract further reinforces the co-operation between our two companies.”

Arkadiusz Ryz, Fairplay Towage Polska, said: “We are delighted with this order which is connected to our last year purchase in Damen. Thanks to strong connection with our clients, we actively

respond to the growing market needs with highest quality and efficiency available.

Those two highly manoeuvrable and highperformance new modern tugs will strengthen our fleet and co-operation with Damen.”

DAMEN SHIPYARDS GROUP — OCEANS OF POSSIBILITIES

Damen Shipyards Group has been in operation for over 90 years and offers maritime solutions worldwide, through design, construction, conversion and repair of ships and ship components.

By integrating systems, Damen creates innovative, high-quality platforms, which provide customers with maximum added value. Damen’s core values are fellowship, craftsmanship, entrepreneurship and stewardship. Its goal is to become the world’s most sustainable shipbuilder, via digitalization, standardization and serial construction of its vessels.

Damen operates 35 shipyards and 20 other companies in 20 countries, supported by a worldwide sales and service network. Damen Shipyards Group offers direct employment to more than 12,000 people.

SHIPPING & TRANSPORT

Fairplay Towage Group, a major European tugboat operator with over 100 tugs in operation, has placed an order with Damen Shipyards Group for two Damen RSD tugs 2513. The vessels will be delivered in January 2023.

The twin-fin Reverse Stern Drive (RSD) Tug 2513 is one of Damen’s most capable and innovative harbour tugs with excellent seakeeping behaviour, superb manoeuvrability and outstanding towing characteristics, with a maximum of 80 tonnes bollard pull. As one of Damen’s Next Generation Tugs Series, the RSD tug 2513 also has a focus on offering increased safety, sustainability, reliability and efficiency.

Fairplay’s new tugs will be equipped with powerful render recovery winches with auto tensioning systems, as well as FiFi1-rated fire-fighting systems. Fairplay has also voluntarily opted for immediate IMO Tier 3 compliance by specifying Damen’s Marine NOX reduction system with its advanced active emissions control system using SCR (selective catalytic reduction).

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Fairplay Towage Group orders two Damen RSD tugs 2513

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Shipnext: transforming a $2 trillion market with technology Shipnext is a digital shipping marketplace and transportation platform.

The access to real-time data, and the use of big data analysis and mathematical modelling have been largely complicated by the lack of modern technology. Since the 1990s, with the shift of business communication and chartering towards email, the shipping market has comprised little else but endless emails and messages sent across the industry. These contain freight requests, cargo data, open ship positions, shipping data and freight information.

The widespread introduction of Natural Language processing and Machine learning in the mid-2010s involved using nightly paid and skilled shipping managers and brokers to manually process emails and conduct searches for shipping data — a highly inefficient process. In some companies, which employ dozens of brokers in their international offices, processing emails and messages costs up to 85% of the valuable work-time, and leads to huge losses.

Shipping needed a platform to help process emails and messages, and to facilitate chartering, freight search and datamanagement.

AUGUST 2022

www.drycargomag.com

INTRODUCING SHIPNEXT

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Shipnext patented the process of combining email and data processing with the concept of using a shipping platform for instant cargo-to-ship and ship-to-cargo matching, dynamic freight search, data analytics, chartering and trading, digitalization of workflows.

To date, Shipnext is the only platform that offers a full A-to-Z process and covers all types of trades regardless of the size, type, form and destination of cargo. This includes including dry bulk, breakbulk, liquid bulk, containerized shipments, and heavy and oversized cargo.

Shipnext also patented the process of optimization of freight search, delivery planning and optimization of transportation, by using algorithms and Artificial Intelligence for data processing and shipping email processing, dataprocessing on cargo, fleet, ports, shipping routes, in realtime with the help of a digital shipping platform.

DIGITIZATION, DATA SECURITY AND FLEXIBILITY UNDERPIN SHIPNEXT’S SUCCESS

In a recent interview with Ship2Shore, Alexander Varvarenko, founder of the Shipnext shipping platform, praised the

Alexander Varvarenko, founder of Shipnext.

blockchain “with which Maersk would not have lost $300,000,000” and hopes that “wars and international affairs will not compromise modernization of the shipping industry.”

He explained how digitization is revolutionizing many industries, with the shipping industry no exception.

The 42-year-old Belgian shipping and digital technology entrepreneur was born in Ventspils (Latvia) in 1980. Varvarenko spent most of his life living between Belgium and Ukraine, where he studied and worked. Now Varvarenko lives permanently in Belgium. Over the years, he expanded his activities and interests, starting with the Varamar maritime group and eventually in 2015 founding Shipnext, a company that offers a blockchain-based digital shipping marketplace and transportation platform, providing instant data and email processing, instant cargo-to-ship matching, contract management, digital documentation flow, transportation financing and supply chain management solutions.

The great changes taking place, according to Varvarenko, “have also affected the shipping sector and international transport in general over the last five to seven years.”

However, it remains extremely difficult to innovate because changes depend on the choices made by all countries which use maritime transport on a daily basis. He says, “introducing new fleets or different fuels requires many years of legislative debates, research, studies and synchronization work before implementation. .... Wars, geopolitics and other international affairs make [this] even more complicated. Not only that, there would also be the risk that ‘any innovation made by a single actor, implemented without an

international connection, would lead to a further step towards fragmentation and localization.” He further notes that “it would be “those operators who have clearly understood that greater efficiency can only be achieved through digital technology” that would drive this sector, which struggles more than others to modernize, towards innovation.

Varvarenko emphasizes, “companies have finally realized that the container only represents the packaging of a cargo, not the cargo itself, and that all goods can still be shipped unpacked. This ... has enabled some operators to become leaders in the industry and to expand internationally.”

The enormous progress in communication, which is now almost instantaneous, have also fostered greater efficiency and modernization of the shipping industry. In this sense, Shipnext is, says Varvarenko, an innovative shipping platform, which “has patented the process of processing email and shipping data, to standardize and structure the data using a platform for instant matching of goods.”

Digitization could also enable smaller players to survive in a market, such as the logistics and shipping market, where the phenomenon of concentration is constantly expanding. According to Varvarenko, “digitization has helped smaller players in creating a revolutionary concept that attracts the interest of investors and helps them raise enough capital to withstand competition from larger players.”

Varvarenko is convinced that the key to success for a broker is determined by “realtime data, market visibility and daily communication. The more brokers work in the team, the more data has to be processed and the mail is the main part.

Personal contact and communication with the client is also important.

“Once the first artificial intelligence technology became available, we created the right team ... “We have created the algorithm, which allows for the instant processing of e-mails and the use of data for the instant search of goods (cargoshipment matching). This is regardless of the complexity, size, packaging and destination of the shipment.

“And this speed with which you can find the most suitable fleet to meet your shipping needs is truly unique. The algorithm continues to create the best matches and becomes more advanced every day, every hour, every minute and every second.”

For Varvarenko, moreover, the biggest

SHIPPING & TRANSPORT

forwarder. Varvarenko’s opinion is that “for a digital freight forwarder, we would expect to see a platform that offers you an instant freight quote regardless of the size, shape, packaging, complexity or destination of the shipment. This, however, is only possible with comprehensive global coverage or indepth market knowledge.

Imagine a digital platform that is sophisticated enough to give you a solution for any shipment and any destination — Shipnext’s founder continues in his reasoning — with GoogleMaps it is easy, because the cargo is represented by a human being. But with cargo that comes in different shapes and quantities, it is not. To build this knowledge, such a platform would have to be based on an algorithm, which has access to a large enough share of global shipping data and communications. It would then connect you to the best shipping solution, similar to how

Booking.com connects you with flights and hotels, or show you the best route and times like Google Maps.”

It is not yet clear whether competition between shipping platforms will lead to one of them imposing itself on all the others or whether a coexistence will still be possible.

In this regard, Varvarenko considers it unlikely that “there will be one platform that fits all, especially since each company involved in international transport has its own requirements, specificities and demands.

So far, most shipping platforms, such as Flexport, Freightos and SeaRates, are specialized, for some reason, on containers.

Some others, such as Marine Traffic, Project 44, Maeco, VesselValue, focus on container or fleet tracking. Others, such asNetpas, Shipfix, AXS, BalticSpot, prioritize email processing and dry bulk and liquid bulk data. They all say they plan to build the missing functionality and offer services they do not yet offer.”

Until this happens “Shipnext will remain the leader because it does not create restrictions or red lines and offers a complete set of functionalities regardless of size, shape, type of cargo,” says Varvarenko in conclusion.

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challenge to overcome was “to overcome the fear of brokers of being replaced by algorithms, however.”

The use of blockchain is undoubtedly one of the reasons why Shipnext is a secure company from a cybersecurity point of view. He explains, “Let’s imagine that all company data is stored on a computer or server. There is always the risk of piracy, external attacks and break-ins. Regardless of the financial strength of the organization, because it couldn’t spend as much on security as Microsoft, Google or Amazon do anyway. Cloud services exist, but even they are not as secure as everyone would have hoped.

“Now imagine, instead, that the data you collect is stored on 20, 30, 100 or 1,000 other sources. The only way to hack, steal or delete them would be to compromise the security of 60% of them simultaneously.

This is unimaginable. This is why blockchain is so important. With it, situations such as the one that happened with Maersk in 2017, which cost a loss of $300,000,000”.

In a market that would therefore seem to be rewarding those who go down the digital route, it is fair to ask what is the reason behind the failure of Flexport’s attempt to present itself as a digital freight

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NEWS SHIPPING & TRANSPORT www.drycargomag.com AUGUST 2022

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Singapore and Rotterdam to establish world’s longest Green and Digital Corridor for efficient and sustainable shipping The Maritime and Port Authority of Singapore (MPA) and the Port of Rotterdam have signed a memorandum of understanding (MoU) to establish the world’s longest Green and Digital Corridor to enable low and zero carbon shipping.

Signed by Quah Ley Hoon, Chief Executive of MPA, and Allard Castelein, the MoU will bring together stakeholders across the supply chain to realize the first sustainable vessels sailing on the route by 2027.

Singapore and Rotterdam are among the largest bunkering ports in the world, making them vital links on the AsianEuropean shipping lanes.

While international shipping currently uses largely marine gas oil (MGO) and low-sulphur fuel oil, sustainable alternatives such as biofuels, including biogases, are increasingly being made available. Other alternatives such as synthetic methane, hydrogen, and hydrogen-based fuels including ammonia and methanol are in various stages of R&D for future trials and deployment.

Each alternative fuel has its own challenges relating to costs, availability, safety, and restrictions in range due to lower energy density compared to fossil fuels. To tackle these challenges, the two port authorities agreed to bring together a broad coalition of shippers, fuel suppliers and other companies to collectively work on potential solutions.

Beyond alternative fuels, the MoU also aims to optimize maritime efficiency, safety, and the transparent flow of goods by creating a digital trade lane where relevant data, electronic documentation and standards are shared. This will facilitate the seamless movement of vessels and cargo, and optimize just-in-time arrival of vessels from port to port.

The port authorities will work with the Global Centre for Maritime Decarbonization and the Mærsk Mc-Kinney Møller Center for Zero-Carbon Shipping as action partners, as well as other industry partners across the supply chain, including bp, CMA CGM, Digital Container Shipping Association, Maersk, MSC, Ocean Network Express, PSA International, and Shell for a start. This will enable the Green and Digital Corridor project to raise investment confidence, attract green financing, and kickstart joint bunkering pilots and trials for digitalization and the use of low- and zero-carbon fuels along the route.

S Iswaran, Minister for Transport and

Minister-in-Charge of Trade Relations, Singapore, said, “Decarbonizing shipping is an urgent climate action priority, which requires the collective efforts of the entire maritime sector... Singapore contributes actively to IMO’s efforts to make international shipping more sustainable, and global supply chains more resilient. This MoU with the Port of Rotterdam demonstrates how like-minded partners can work together to complement the efforts of the IMO. It will serve as a valuable platform to pilot ideas that can be scaled up for more sustainable international shipping.”

Allard Castelein said, “Shipping is among the most important industries to decarbonize, owing to its large international reach and volume, which continues to grow. By bringing together parties across the supply chain along one of the world’s biggest trade lanes, we can enable carriers to switch to zero-carbon fuels and speed up the transition to more sustainable shipping.”

Quah Ley Hoon said, “This MoU further strengthens the strong partnership between Singapore and Rotterdam. It reaffirms Singapore’s commitment towards facilitating a multi-fuel bunkering transition as part of the Maritime Singapore Decarbonisation Blueprint 2050, and accelerates our digitalization efforts to optimize maritime efficiency and improve supply chain resilience. The pilot will complement efforts undertaken by the shipping industry, including partners such as Google Cloud, and the IMO to support decarbonization and digitalization transition for international shipping, as we work towards developing and scaling up green and digital solutions for wider adoption.”

Bo Cerup-Simonsen, CEO of the Mærsk Mc-Kinney Møller Center for Zero-Carbon Shipping, said: “The Singapore-Rotterdam Green Corridor is fully in line with our strategy to accelerate the decarbonization of the maritime industry by supporting first movers. We need bold projects like this to leverage the learnings and further develop green partnerships across the value chain.

Connecting globally leading partners around one of the major trade-lanes will allow us to demonstrate concrete, scalable decarbonization solutions that can inform and inspire industry as well as policy makers around the world.”

Professor Lynn Loo, Chief Executive

Officer of Global Centre for Maritime Decarbonisation (GCMD), said, “International shipping will have to deploy at least 5% zero-emission fuels in its fuel mix by 2030 for the sector to meet a Paris-aligned net-zero target. To this end, green corridors provide a framework to harmonize standards and regulations, increase green fuels availability and strengthen their supply chains, and attract green financing for bunkering infrastructure buildout at ports involved. GCMD is excited to be an action partner in the development of the world’s first green and digital corridor. We will operationalize meaningful route-base, port-to-port pilots along this green corridor to help international shipping navigate and accelerate its transition towards a zerocarbon future.”

ABOUT THE MARITIME AND PORT AUTHORITY OF SINGAPORE (MPA) MPA was established on 2 February 1996, with the mission to develop Singapore as a premier global hub port and international maritime centre, and to advance and safeguard Singapore’s strategic maritime interests. MPA is the driving force behind Singapore’s port and maritime development, taking on the roles of Port Authority, Port Regulator, Port Planner, IMC Champion, and National Maritime Representative.

MPA partners the industry and other agencies to enhance safety, security and environmental protection in our port waters, facilitate port operations and growth, expand the cluster of maritime ancillary services, and promote maritime R&D and manpower development.

ABOUT THE PORT OF ROTTERDAM AUTHORITY The aim of the Port of Rotterdam Authority is to strengthen the competitive position of the port as a logistics hub and a world-class industrial complex in terms of both size and quality. The Port Authority is able and willing to make an impact and so it is focusing on accelerating sustainability in the port and it is a partner in the digitalization of the port and logistics chains. The Port Authority's core tasks are the sustainable development, management and operation of the port, the maintenance of the smooth and safe handling of shipping and supporting the future-resilience of the port of Rotterdam.

Aerial view of the Mississippi River.

T. Parker Host has announced the largest amount of cargo ever loaded on the Mississippi River on 6 August 2022, sailing from United Bulk Terminals and co-ordinated by Host Agency.

The Capri loaded over 134,000 metric tonnes of coal from Javelin Global Commodities, making this vessel the first to sail with a draught of 50 feet on the river. HOST served again as both the vessel agent and terminal operator for another historic voyage on the river.

With a presence on the river for over a decade, HOST is proud to have participated in the phase of reaching 50 feet in 2022. The company will continue to support the long-term efforts to reach a 55 feet draught. This announcement follows other draught milestones on the river, issued in December, 2021 and March, 2022.

This is a celebration for commerce on the river, and the culmination of years of industry efforts and partnership between the River Pilots, U.S. Army Corps of Engineers, U.S. Coast Guard, port officials, elected representatives, six different governors and the entire maritime community to be able to accommodate vessels with larger draughts — bringing more commerce to the Mississippi River.

T. Parker Host is a total solutions provider for the maritime industry, specializing in agency services, terminal operations, stevedoring and marine assets.

Founded in 1923 and guided by its core principles, the company has developed a strong reputation in the maritime community for its expertise, transparency and high standards of service. The entire HOST team focuses on customer needs while adding value to every operation.

SHIPPING & TRANSPORT

HOST sails first vessel on Mississippi River with 50 feet draught

NEWS PORTS & TERMINALS www.drycargomag.com AUGUST 2022

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Gdynia and Riga Freeport sign memorandum on coal Gdynia Port Authority and Riga Freeport have signed an Memorandum of Intent that will pave the way to enable greater co-operation between them. One of the results should see the Port of Riga handling at least five million tonnes of coal by the end of the year.

The two ports hope to take advantage of the unstable situation in the global energy market and disruptions in freight supply chains by leveraging spare capacity to be found at the Latvian and Polish ports.

In particular, Riga wants to better use the state-of-the-art multi-purpose Krievu Island terminal, which became operational at the end of 2018. This facility has equipment to handle and crush coal, as well as transport and store it. It has the most up-to-date infrastructure in the Baltic region as well as being very environmentally friendly.

Coal handling, for example, is effectively a sealed activity, with an automated wagon dumper system. Furthermore, a closed

conveyor belt network transports coal to and from docked vessels. In order to reduce dust escaping into the air from open coal storage areas, the coal is regularly misted; in winter, snow cannons are also used for the same purpose. There is also a 23-metre-high dust fence to prevent the spread of coal dust into the immediate environment.

The port authority has also placed an air quality monitoring station on Krievu Island.

Barry Cross

Shakhtersk coal port breaks loading record in June In Russia, Coal Seaport Shakhtersk LLC, which is located in the Sakhalin Region, is on course to dispatch 11mt (million tonnes) of coal in 2022. The facility, which belongs to the East Mining Company (EMCO), will achieve this by boosting daily shipments to 100,000 tonnes.

In June this year, the port loaded 2.15mt of coal, beating the previous record by 16%. This, in part, is down to the upgrading of handling equipment.

The port has introduced extensions to the main conveyor belt network and also installed two shiploaders on the quay.

In 2021, Rocktree EMCO Stevedore also acquired two new, 7,500dwt selfpropelled barges, which helped boost capacity by nearly 20% when the new handling equipment was factored in too.

Sakhalin Region-based East Mining Company (EMCO) is a coal producer that also controls the full cycle from the extraction of the coal to the shipment of (brown) coal. In fact, the company accounts for about 80% of brown coal from Sakhalin.

Barry Cross

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Fast and efficient handling of dry bulk at HES Humber Bulk Terminal THE ONLY INDEPENDENT SPECIALIST DRY BULK IMPORT AND EXPORT FACILITY, WITH EXCELLENT ROAD AND WATER CONNECTIONS SITUATED ON THE SOUTH BANK OF THE HUMBER ESTUARY

HES Humber Bulk Terminal in the UK delivers quality handling solutions and exceptional levels of customer service across a range of sectors including agribulks, energy bulks and minerals.

With a fully automated conveyor-fed import and export system, the terminal provides highly efficient unloading and loading of vessels.

Modern facilities guarantee fast and efficient unloading and loading of vessels and trucks. Additionally HES Humber Bulk Terminal offers high quality storage capacity and multiple added-value services such as screening, bagging, weighing and grinding. Ships agency, husbandry and customs clearance services are also available.

The excellent water and road connections combined with the outstanding transshipment and storage capabilities enable the terminal to meet today’s customer demands, as well as the challenges of the future.

That is exactly why the terminal has invested in a new hopper and additional warehousing to further diversify into other dry-bulk products, products that often require high quality covered storage and state of the art processing equipment.

With development land secured and planning approvals in place, there are exciting future expansion and growth opportunities available.

HES Humber Bulk Terminal is an important switch in the continuous delivery of essential commodities for consumers everyday lives: the bread, cereals and pasta that the country eats, or the beer or spirits that it drinks. The chances are that the necessary raw ingredients for these products were transported via HES Humber Bulk Terminal. It’s the same for the biofuels that provide the UK with heat and energy and for the aggregates and minerals that it uses in construction and manufacturing.

AUGUST 2022

SAFETY

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Safety is a team game and every employee has to play their part. The prevention of accidents and incidents is an everyday priority for all employees and contractors at HES Humber Bulk Terminal. The company firmly believes that all accidents and incidents are avoidable. Its target goal

HES HUMBER BULK TERMINAL FACTS AND FIGURES Location:

Old Ferry Terminal, New Holland, North Lincolnshire, United Kingdom Open storage capacity: 6,200m2 Covered storage capacity: 275,000m3 Access by: Vessel truck Max. draft: 6.5m Products: Agribulks, industrial minerals, biomass, aggregates Services: Handling, storage, screening, bagging, weighing, transport, ships agency A fully automated conveyor fed import and export system complemented by an impressive fleet of modern, mobile handling equipment 25 professionals at work Associations: Trade Assurance Scheme for Combinable Crops (TASCC), Organic Food Federation (OFF), Fertiliser Industry Assurance Scheme (FIAS), UK Warehousing Association (UKWA), ENplus Woodpellets (UK 901 SP)

is zero, anything more is an unacceptable outcome. The Terminal strictly follows all legislation and regulations as well as the

operating guidelines of the different trade and product associations, always anticipating future changes and

NEWS PORTS & TERMINALS

developments.

HES Humber Bulk Terminal is accredited with TASCC (Trade Assurance Scheme for Combinable Crops) and FIAS (Fertiliser Industry Assurance Scheme). HES Humber Bulk Terminal’s wood pellet operations are ENPlus accredited and it is also a member of UKWA (UK Warehousing Association).

ENVIRONMENT By caring for natural habitat whilst considering the

requirements of its employees and customers, HES Humber Bulk Terminal is constantly alert to the potential environmental impact of its activities. Dust is a specific challenge when it comes to dry bulk handling and the terminal has various dust suppression and extraction measures to meet those challenges. As with safety, the environment is a daily team priority.

The terminal also engaged with local stakeholders and supports local community organizations and initiatives including planting schemes and sponsorship of sports clubs.

NEWS PORTS & TERMINALS

Louisiana leaders celebrate deepening of the Mississippi River Ship Channel Louisiana elected officials, federal partners and maritime stakeholders have joined the Big River Coalition to celebrate the U.S. Army Corps of Engineers (USACE) completion of the first two phases of the deepening of the Mississippi River Ship Channel, which presently provides a maximum draught for vessels to the Port of New Orleans at 50 feet. The Ship Channel has been mechanically deepened for the first 200 miles, but additional efforts are required to open the deeper draught north of the Huey P. Long Bridge.

“The deepening of the Mississippi River Ship Channel is a transformational project that will bolster our economy, create and sustain jobs, and solidify Louisiana’s status as a global anchor for trade,” said Gov. John Bel Edwards. “The economic growth from this project is expected to create several thousand new jobs, which comes on the heels of Louisiana reaching the lowest unemployment rate in state history.”

Presently, the increased draught is available through the Port of New Orleans to the Huey P. Long Bridge at Mile 106 Above Head of Passes (AHP). Expansion of the deeper draught above the Huey P. Long Bridge from 49 feet to 50 feet will require

additional improvements although the dredging has been completed to Mile 175 AHP along with the additional 20 miles of Southwest Pass (195 miles total).

Phase 1 work began on 11 September 2020 when Weeks Marine’s cutterhead dredge Captain Frank commenced work on the initial dredge. The USACE also awarded a contract for both another cutterhead dredge and a hopper dredge to Manson Construction Co. to complete the first phase of the deepening.

The Mississippi River Ship Channel is home to four of the nation’s top 15 ports by annual tonnage (Port of Greater Baton Rouge, Port of South Louisiana, Port of New Orleans and the Plaquemines Port Harbor and Terminal District). The overall costs for the project were estimated at $250 million, the State of Louisiana committed $81 million to match the nonfederal sponsor cost-share.

“Bigger ships carrying more cargo means more jobs and economic opportunity for Louisiana and the Nation,” said US Sen. Bill Cassidy. “This project is a top priority for Louisiana’s entire federal delegation.”

The Capri loaded with a record 134,706

metric tonnes of coal was the first vessel to transit on the Ship Channel with a draught of 50 feet upon departure on 5 August, 2022 — almost ten years to the day after the Big River Coalition revitalized efforts to deepen the Ship Channel. The Capri departed the Ship Channel with a Crescent River Port Pilot on board until the pilot exchange occurred at Pilottown when a Bar Pilot took over for the outbound voyage through Southwest Pass to the Gulf of Mexico.

Captain Michael Miller, President of the Associated Branch Pilots (Bar Pilots) and Chairman of the Big River Coalition, said: “The Bar Pilots applaud ... efforts ...to keep our ports competitive.

The completion of the 50-foot deepening project on the Mississippi River Ship Channel is proof positive that the Lower Mississippi River Valley is open for business on a new level.”

The Economic Justification Report identified the benefit-to-cost ratio at 7.2to-1, calling the project one of national and international significance, as the Ship Channel moves more than 500 million tonnes of cargo annually, including 60% of the nation’s grain and 20% of the nation’s energy.

PORTS & TERMINALS

A fine representative specimen Inspection, analysis & sampling PSB Inspection focuses primarily on coal and coalrelated products, but is also expanding into markets such as biomass, alternative fuels, minerals, metal and slag, flyash and fertilizer.

Jay Venter

PSB Inspection – reliable sampling services in a turbulent market to products that emit less CO2 than coal.

This is quite a challenge. Fossil fuels are still widely used because of past developments: power plants were built, and coal was plentiful and affordable. This cannot be replaced overnight. A direct transition from coal to biomass is impossible. This is mainly due to the technology of current power plants: biomass has a different composition than coal and must be treated differently.

Current power plants are completely focused on burning coal. There is also an economic aspect: biomass is much more expensive than coal. Two major steps must therefore be taken before the transition can be fully implemented: power plants must be converted, and it must become more financially attractive to switch to biomass. The fact remains that the energy mix will increasingly consist of renewable energy in the coming years. PSB Inspection is happy to contribute to this development.

AUGUST 2022

high quality services in the field of inspection, sampling, sample preparation, analytical services and weight ascertainment required by PSB Inspection’s customer base. Recently, the company expanded its service portfolio with gas/toxin measurement (four qualified and certified gas/toxin measurement experts including high quality, certified equipment).

More expansion is being planned.

Other than Europe, PSB Inspection can offer its services in various other countries (South Africa, Turkey, UK, LATAM) as well and is also expanding its country portfolio.

All is being co-ordinated from its head office, obviously under the applicable ISO standards 9001 and 17025. Certifications to 17020 and GAFTA are on the way. In addition, PSB Inspection also uses its own internal quality procedures.

PSB Inspection continues to focus on the future, a major topic now is the energy transition: the replacement from fossil fuels

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PSB Inspection was established by Peter Bagchus, CEO and owner, in 2017.

The company operates from its head office in Vlaardingen (Rotterdam port area).

It has highly qualified and experienced senior surveyors and an experienced sampling preparation team. PSB Inspection runs its own laboratory with highly qualified and experienced laboratory technicians which is all managed by the operational team in close conjunction with the management team members, who have been active in this type of business for decades. Currently, PSB Inspection focuses primarily on coal and coal-related products.

However, bearing in mind that the world — and the energy market — is changing vastly and rapidly, it is also working hard to expand into markets such as biomass, alternative fuels, minerals, metals, slag, flyash and fertilizer, which are under development in different phases.

This all takes place with a clear eye on

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Scantech TBM200 series microwave moisture analyser for monitoring TML during ship loading.

14 13 12 11 Moisture (%)

10 9

Lab TBM

8 7 6 5 4

1

10

19

28

37

46

55

64

73

82

91

100

109

118

Sample number

Feedback received from the resources sector indicates other technologies, such as surface measurement and conductance systems are not suitable for large conveyed flows as moisture content varies through the conveyed profile and that not one depth within that profile can be relied upon to be representative of the full flow.

Vibration, particle size, particle shape, packing of grains, capillary action and ambient conditions affect the moisture distribution through the profile much the same way that tapping a bucket of wet sand causes the moisture to migrate to the surface. In coarser materials the moisture tends to concentrate towards the base as it drains more freely and hence coarser materials pose less risk in liquefaction, but moisture content still varies throughout the conveyed profile.

Measuring moisture representatively and with high levels of confidence in conveyed flows in real time can be a relatively inexpensive and effective way to monitor and manage moisture and minimize potential loss of life and assets when used in conjunction with compliant sampling and laboratory assay practices.

AUGUST 2022

appropriate for the commodity, then an alarm may be raised at 9% moisture from the analyser results. The analysers utilize a belt weigher input to provide tonnage weighted average moisture for the whole load, or loads filling each compartment in a bulk cargo ship. The system is unaffected by particle size, belt speed, segregation or layering within the flow.

Scantech International Pty Ltd TBM200 series microwave moisture analysers have been adopted by most major iron ore companies for monitoring moisture at their mine sites, particularly for hematite and goethite ores. TBMs are used in over 20 commodities for free moisture measurement and appear, from customer feedback, to provide leading measurement performance in the resources sector.

Magnetite concentrates are not suitable for moisture measurement using microwaves. A different representative measurement technique called Fast Neutron and Gamma Transmission used in Scantech’s CM100 series analysers achieves precisions of as low as 0.2% moisture on materials where the microwave technique is unsuitable.

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Transportable Moisture Limit (TML) is typically monitored through sampling and laboratory analysis that complies with IMSBC Code during bulk commodity loading of ships, writes Henry Kurth, Chief Marketing Officer, Minerals Consultant, Scantech International Pty Ltd. Shiploading may be interrupted until laboratory results are available to confirm average moisture content is below the TML where material type has a high likelihood of nearing, or exceeding, the TML. Where loading is not monitored, moisture content may not be known until after loading is completed. If average moisture from sample testing is then found to exceed the TML, then the ship should be unloaded, in part at least, and drier material added to ensure average moisture is below the TML. INTERCARGO reported that liquefaction of nickel ore and bauxite bulk cargoes has over the last ten years resulted in five capsize or sinking events causing the loss of 70 lives. It found “that not only were IMSBC Code requirements not being followed, especially in relation to testing and certification of cargo condition, but that there was also lack of adequate assessment and monitoring of the condition of cargoes being loaded in the cargo holds by representatives of all interests ... INTERCARGO is urging all shipowners, operators, and seafarers to exercise extreme caution when accepting nickel ore, bauxite, iron ore fines, ball clay and other cargoes that have the potential to liquefy.”

Technologies exist to monitor moisture content during ship loading operations in real time, and while not able or intended to be used for certifying moisture content, they are nonetheless a useful indicator of free moisture content when correctly configured and calibrated.

Loading operations can be paused when measured moisture approaches or exceeds the TML and drier material sought before loading continues.

Representative measurement requires fully penetrative and continuous measurement through the conveyed profile. This is effectively achieved using microwave transmission technology which can often produce measurement precisions of better than 0.5% moisture.

This requires a safety factor to be considered when loading a ship, even when calibration is routinely checked and precision verified.

If 10% TML is

PORTS & TERMINALS

Representative, real time moisture measurement for TML monitoring during shiploading

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PORTS & TERMINALS www.drycargomag.com AUGUSTUS 2022

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RTI offers real-time analysis technology to benefit industries Real Time Instruments (RTI) is an Australiabased company specializing in on-line elemental and moisture analysis of bulk materials providing operators with process data to make pro-active real-time control decisions to improve plant efficiency and bottom-line profitability.

RTI can apply its high-technology products to provide real-time analysis to many industries, assisting companies to identify inconsistencies and help maximize their profits and bottom line — from pit to port and beyond.

RTI’s customers, across the world, have come to count on the company’s suite of elemental analysers and moisture analysers to reap maximum yield from their operations. Having access to real-time results empowers them to make intelligent decisions which means they can recover more, waste less and take full control of their processes.

Across the full spectrum of traditional mining, new and critical minerals, cement production, power generation, food production and shipping, RTI’s suite of globally respected elemental analysers and moisture analysers leads the market in delivering real outcomes which boosts efficiencies and saves millions of dollars!

RTI’s equipment helps customers reach Net-Zero targets through improved efficiency, tighter quality control and reduced emissions.

RTI collects and delivers on-line real time data to operators, meaning they can make critical decisions — on the spot, when it matters.

Below are a few case studies of recent RTI projects, which illustrate the effectiveness of its products.

ALLSCAN DELIVERS BETTER STOCKPILE CONTROL , ON-SPEC ORE AND 5% PA PRODUCTIVITY BOOST

THE CASE: ALLSCAN — IRON ORE, STOCKPILE MANAGEMENT. The challenge: the customer was processing varied grades of iron ore, but was unable to identify the quality of product once it has passed through the process facility and had been stacked. A comprehensive stockpile management system was already in place. However, operators needed to update that system with lab data as it became available — usually six to eight hours after it had been stacked. This led to an unacceptable lag and an inability to make critical decisions when it mattered.

The purpose: knowing the Iron (Fe)

content of the product would empower the customer with real-time oversight of the ore blending process. This meant they could gain maximum yield, best exploit ore value and meet content specifications.

The discovery: RTI's first step was to understand the customer's processes, systems and specific challenges. From there, RTI developed a high-value, tailored solution which became an integral part of the stockpile software. The installation of an AllScan on the stockyard conveyor belts meant that operators immediately saw the real-time results. As the product was stacked, the stockpile management software logged the same data to include in the result. By doing so, this provided an indepth display showing what product was where, as well as the quantity, and most importantly, where to reclaim it.

The result: by tailoring an integrated solution using the AllScan, RTI’s customer was able monitor its stockpile in real time, blend product to specification, and not 'give away' any high-quality iron ore. The ability to blend high-grade ore with regular ore, to create a superior product, in larger quantities, resulted in a profit increase of approximately 5% — and a significant improvement to revenue.

Other potential commodity applications: this technology has application in the context of stockpiling, where material composition is a critical factor, across the full spectrum of mineral and ore mining and processing.

ALLSCAN HELPS MINE OPERATORS DELIVER QUALITY COAL TO POWER STATION IN REAL TIME

THE CASE: ALLSCAN — ASH ANALYSIS The challenge: the customer needed realtime data about the grade of product being sent to its power station, to help maintain running conditions in the wash plant. The three main results sought were around ash, moisture and specific energy data.

However, elemental composition of the ash was also useful. Without the AllScan, the only means of determining these results was to wait for laboratory samples. This usually takes two to three days for critical results, and two to three weeks for full elemental analysis, by which time product has been delivered to the power station.

The purpose: knowing the composition of the coal in real time would enable mine operators to make changes to wash plant conditions in situ. Specifically, where product is too low, less coal is rejected,

such that the customer is now working to calibrate AshScans coming directly from the run of mine. These are placed immediately prior to the entrance of the plant, enabling operators to know product quality received from the mine and being fed into the plant. The AllScan has proven vital to this customer's plant operations; so much so, that if the analyser is not operating, the whole plant is shut down.

For this reason, the site has an extensive 24/7 PSA (Product Service Agreement) with RTI to maintain the analysers and ensure they are working at their best.

Other potential commodity applications: fundamentally, the same technology can be applied to the delivery of on-spec material in product processing minerals applications.

PORTS & TERMINALS

MOISTSCAN DETECTS HIGH-MOISTURE EVENTS, SAVING 13 HOURS OF PRODUCTION MONTHLY

THE CASE: MOISTSCAN — IRON ORE, STOCKPILE MANAGEMENT

Other potential commodity applications: this technology has application in the context of stockpiling, where moisture content is a critical factor, across the full spectrum of mineral and ore mining and processing.

ALLSCAN PROVIDES ACCURATE ONLINE ASH ANALYSIS, IMPROVING AIR QUALITY THE CASE: ALLSCAN — COAL-FIRED POWER STATION, ASH CONTROL The challenge: more than 90% of India's population lives in areas where the air quality is below the World Health Organization's standard, with coal-fired power plants being a major contributor to this pollution. To combat this growing issue in 2014, the Ministry of Environment and Forest had imposed 34% ash limit on all NTPC's power plants. Previously these power plants had to rely on manual laboratory data, taking up to 24 hours to receive a result, by which time the out of

AUGUST 2022

The challenge: persistent 'high moisture events' occurring during plant operation, led the customer to work with RTI in developing a solution which gave it realtime visibility and control. When the customer’s product moisture passed 12%, processes were forced to be stopped and reset to avoid blockage and malfunction of apparatus. This meant unproductive — and costly — downtime; and once the plant was forced to stop, it would take five hours to be restored to full capacity. Further, as moisture was measured by the laboratory, results would typically take between two and four hours to be returned.

The purpose: RTI’s primary focus was to give the customer visibility and control over the product moisture operators to increase uptime and minimize downtime on plant feed by monitoring added moisture content to ensure the 12% mark is never breached.

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saving money on reclaiming. Similarly, if product was too high and not within specification, this would enable more to be washed or rejected, to bring product back within specification, saving fines from the power station.

The discovery: RTI was able to prescribe an AllScan to a targeted install location, enabling real-time analysis of ash, moisture, specific energy and elemental composition of the product. The operators were given full access to the instantaneous results, as well as a rolling 12-hour average, that operators could use to understand the tonnes-weighted average of the previous 12 hours.

The result: the application was a success.

The operators use the instantaneous results to monitor, in real time, the composition of the product, and minorly adjust the plant accordingly. Additionally, the rolling 12 hour results enabled the maintenance of an average quality for their shift, which remains within power station specification. Daily average data shows the operation was within its specified 28% ash, 74% of the time, and the operation never missed spec by more than 1%. The site is satisfied with the AllScan's performance;

The discovery: once the problem of consistent 'high moisture events' was discussed with RTI, the company was able to provide a real-time moisture analysis solution by implementing a MoistScan on plant feed-in and feed-out. By doing so, operators could see the moisture value as it happened, enabling them to avoid breaching moisture limits, meaning the plant could continuously, and more reliably, run at optimum capacity.

The result: since the implementation of the MoistScan solution, this site has reported a complete eradication of 'high moisture events', going so far as using the MoistScan to automate the plant. By preventing the constant plant downtime, an average of 13 hours of production have been recovered — which equates to about $2.7m — per month. When throughput is 2,100-plus tonnes/hour, that adds up to millions of dollars in recovered revenue.

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PORTS & TERMINALS www.drycargomag.com AUGUSTUS 2022

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of ores and bulk materials. Where product quality and elemental composition are key variables in an operations cost and grade control, there is a proven application for AllScan technology.

ALLSCAN ASSISTS SCREENING TO IMPROVE MATERIAL GRADE BY UP TO 50%

spec coal had already been burnt.

The purpose: by knowing the real time ash content of the coal being fed into their bunkers, NTPC can make real-time decisions on the feeding of their boilers.

This allows the operators to accurately blend their coal during reclamation to ensure that all environmental targets are being met.

The discovery: RTI visited multiple power plants in India to tailor a viable solution for the global issue faced by all coal-fired power stations. RTI was able to identify ideal installation locations for its clients and develop appropriate commissioning procedures that maximized accuracy and minimized disruption to process. This allowed the client to rapidly respond to product changes by blending appropriate coal qualities to ensure that their plant is running at maximum efficiency.

The result: in having a high accuracy instrument, the AllScan, on the infeed to its bunkers, the client can monitor their coal quality in real time. This enables the operators to blend their products to ensure the coal fed into their plant is of a lower ash content. This greatly reduces the negative impacts of burning coal to produce power, greatly improving the air quality and the respiratory health of the people living around these power stations.

An analyser utilized in this application could see the reduction in more than 1,400t of CO2 and the saving of more than 25,000t of coal per unit per year of operation.

Other potential commodity applications: fundamentally, the same technology can be applied in the bio-power sector, where matter is being burned and ash and sulphur content reduction can directly corelate to a reduction in carbon dioxide emissions.

ALLSCAN PROVIDES OPERATORS REAL TIME QUALITY CONTROL OF ORE GRADING

THE CASE: ALLSCAN — BAUXITE, ORE MANAGEMENT

The challenge: out-of-specification product poses costly challenges for operations, leading to the unnecessary waste of time,

BAUXITE, ORE MANAGEMENT Initial Good Al Penalty Al Reject Al

data 11% 32% 56%

6-month data 70% 30% 0%

resources and money with hefty penalties applied for non-compliance. To date, the most effective means of mitigating against this has been through sampling. Traditional laboratory testing was accurate but had a turn-around of two to three days, rendering the data obsolete in this specific context. This is what led the customer to work with RTI in developing an in-situ, online, real-time sampling analysis solution.

The purpose: to enable full-spectrum visibility of elemental composition, RTI worked with the customer to deliver highly-accurate data, minute by minute.

This informed an ability to achieve the specific, desired outcome, to maintain a specific alumina level, while simultaneously limiting silicon dioxide levels.

The discovery: working with the customer, RTI's Research and Development team found the AllScan to have a unique advantage in addressing the challenge, in providing real-time analysis of the product to deliver accurate estimates for the alumina and silicon levels, empowering operators to make key decisions.

The result: the AllScan allowed operators to respond to product deviations, in real time, according to the data available to them. This enabled the maintenance of product to specification.

The data collected when the MoistScan analyser was initially installed, showed alumina value regularly falling below sites limits. Six months later, having had visibility and control over moisture levels, the site reported an increase of almost 60% in Good Alumina recorded, and a reduction in reject product from 56% to zero.

Other potential commodity applications: the challenges faced in the context of alumina are applicable in across a number

THE CASE: ALLSCAN — NICKEL ORE, STOCKPILE AND MINING MANAGEMENT. The challenge: RTI’s customer operates a screening plant that upgrades mined ore before being stored on stockpiles, prior to further processing. Management of the screening plant operations were undertaken based on the results of samples taken of the in-feed material; however, the lag on waiting for analytical results from these samples made making meaningful real time decisions impossible. This limited the customer’s ability to maximize the upgrade of the ore or control the levels of deleterious components.

The purpose: by determining the levels of Ni, Fe, SiO2, MgO and other elements in the mined ore, the customer was provided with real-time oversight of the in feed to the ore upgrading process. This meant they could make decisions about in pit operations and screening operations to control and maximize the grade of stockpiled material.

The discovery: RTI's first step was to understand the customer's specific challenges. From there, it adjusted the calibrated result of the AllScan to report material parameters defined by the client as best being suited to inform its decisionmaking process such as the SiO2 /Mg, Fe/Ni and Ni/Co ratios. RTI worked with the customer to validate the analyser performance of the AllScan to allow process control decisions to be made based on the generated results with confidence.

The result: by tailoring an integrated solution using the AllScan, the customer was able monitor its feed material from the mining operations. The ability to control the ore upgrade process in real time allowed for a 50% increase in the grade of the product at the infeed to the furnace.

This combined with the ability to greatly reduce the variation in deleterious competent has had a positive impact on both power consumption costs and CO2 emissions.

Other potential commodity applications: this technology has applications in the context of ore upgrading and stockpiling, where material composition is a critical factor, across the full spectrum of mineral and ore mining and processing.

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NEWS ENGINEERING & EQUIPMENT www.drycargomag.com AUGUST 2022

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The effects of ozone & ultra violet on rubber conveyor belts here are two ‘invisible’ and inescapable factors that have a huge influence not only on the operational lifetime of rubber conveyor belts but also their safe operation. Those factors are ozone (O3) and ultraviolet light (UV).

Contrary to popular belief, the damage they cause is not limited to high altitudes or sunny climates.

T

the points where the strain is greatest.

Although ozone concentrations can differ from one location to another, ground level ozone pollution is everpresent and its effects should therefore never be under-estimated.

ULTRAVIOLET LIGHT

CONVEYING ADVICE

mandatory testing to EN/ISO 1431 international standards for all Dunlop rubber products.

As a direct result, special anti-oxidant additives that act as highly efficient antiozonants and protect against the damaging effects of ozone and ultra violet became an essential ingredient in every Dunlop rubber compound without exception.

Ultraviolet light from sunlight and fluorescent lighting also has a seriously FROM PROTECTOR TO DESTROYER detrimental effect on rubber because it Ozone (O3) occurs naturally in the accelerates rubber deterioration by upper atmosphere.

It is formed producing photochemical reactions that EN/ISO 1431 TESTING continuously by the promote the oxidation of To scientifically measure resistance to action of solar ultraviolet the rubber surface resulting ozone in accordance with the EN/ISO radiation on molecular in a loss in mechanical 1431 test method, samples are placed oxygen (O2). At high strength. This is known as under tension (eg. 20% elongation) altitude, ozone acts as a ‘UV degradation’. In belts inside an ozone testing cabinet and protective shield by that are not fully resistant exposed to highly concentrated levels of absorbing harmful because the manufacturer ozone for a period of up to 96 hours (@ ultraviolet rays. Wind has neglected to add anti- 40°C, 50pphm and 20% strain). currents carry O3 to the ozonants to the rubber Samples are closely examined for The first signs — small Earth’s surface. It is compound, the combined evidence of cracking at two-hourly cracks appear in the here, at low altitude, that effect of ozone and ultra intervals and the results carefully surface of the rubber. ozone becomes a violet not only dramatically measured and recorded. Experience has pollutant. Ground level reduce operational lifetime, determined that in order for the rubber or ‘bad’ ozone is not they also cause significant to be regarded as adequately resistant, emitted directly into the environmental the pass air, but is created by the and health and criteria needs photolysis of nitrogen safety problems. to be that the dioxide (NO2) from This is rubber sample automobile exhaust and because fine does not show industrial discharges. particles of dust any signs of The reaction that occurs penetrate the cracking within The ‘longer term’ effects of between the molecular cracks and are the 96-hour ozone & UV can occur structure (double then discharged period. within a few months. bonds) and ozone is (shaken out) Worryingly, known as ozonolysis. on the return from an endEven tiny traces of ozone in the air (underside) run of the belt. The damage that ozone & UV users point of will attack the molecular structure of These dust emissions are of view, the vast causes should never be underrubber. It increases the acidity of carbon particular concern in ATEX majority of estimated. black surfaces with natural rubber, regulated areas where samples of our polybutadiene, styrene-butadiene rubber materials such as biomass are competitors and nitrile rubber being the most being carried. belts tested in our laboratory typically sensitive to degradation. The first fail within only six to eight hours. It is visible sign is when cracks start to ENTIRELY PREVENTABLE for this reason and despite its crucial appear in the surface of the rubber. The damage caused by ozone and importance, ozone and UV resistance is Further attacks then occur inside the ultraviolet is entirely preventable. very rarely, if ever, mentioned by freshly exposed cracks, which continue Several years ago, we at Dunlop were conveyor belt manufacturers and to grow steadily until they complete a among the very first in the world to suppliers. This is because the anti‘circuit’ and the product separates or make use of new technology that ozonants needed to protect the rubber fails. The cracks are always oriented at enabled the effects of ozone to be tested cost money. The best advice is to make right angles to the strain axis. The and measured. We equipped our ozone & UV resistance a constant dynamic stress that a conveyor belt laboratory in Drachten in the requirement when selecting any rubber undergoes while in operation is Netherlands with the very latest ozone conveyor belt. considerable. Ozone attack occurs at testing equipment and introduced Dunlop Conveyor Belting

W E

C O N V E Y

Q U A L I T Y

PREMAS® 7YL]LU[P]L 7YLKPJ[P]L 4HPU[LUHUJL ;VVSZ

DIGITAL INNOVATION & SOLUTIONS offered for SCHADE Stockyard Equipment PREMAS® PREVENTIVE & PREDICTIVE MAINTENANCE BY SCHADE SCHADE SMART APP 4.0 SCHADE SMART SCAN 4.0 SCHADE 3D LASERSCAN AND ANALYTICS

HM[LY ZHSLZ THYRL['ZJOHKL SHNLY[LJOUPR KL r ^^^ ZJOHKL SHNLY[LJOUPR JVT

NEWS ENGINEERING & EQUIPMENT

Bedeschi supplies new pipe conveyor to TGN Port Empresa Constuctora Belfi S.A. chose Bedeschi S.p.a. for its new project in TGN Port (Terminal Graneles del Norte). TGN Port is located in Mejillones Bay at the heart of Chile’s mining region. It is strategically located, close to the biggest copper district in the world, which contains world-famous mineral deposits. The project includes the full automated handling equipment for receiving, storage container stacking, transport and shiploading of copper concentrate. Bedeschi will design and supply the following equipment: v three belt feeders designed to receive copper concentrate from rotating containers; v an underground conveyor of approximately 400m length in the storage yard; and v a pipe conveyor of approximately 950m to connect the storage yard overland conveyor with an 1,800tph (tonnes per hour) shiploader.

The pipe conveyor was chosen to guarantee the handling of copper concentrate from the storage to the ship without any dispersion of materials into the surrounding area, to avoid

environmental pollution.

Besides avoiding spillage and dust emissions, the use of a pipe conveyor makes it possible to dispense with several transfer points between straight conveyors.

This solution reduces the consumption of energy needed to handle the material, not to mention the energy used for the filters and other suppression systems to lower dust emissions.

Pipe conveyors, and several other

solutions — such as the installation of belt conveyors and trippers in enclosed galleries, the use of gas cleaning and water spray for dust suppression, telescopic or spiral chutes, eco-hoppers, the use of different conveying systems — are some of the best technologies that Bedeschi’s R&D department is constantly improving to guarantee the safeguarding of the environment during bulk handling operations.

AUGUST 2022

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Replacement shiploader for Fertil Ruwais Terminal

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Bedeschi has been contracted to supply a new shiploader to Fertil Ruwais Terminal. The machine will handle fertilizer and granulated urea, and will replace the existing model at the terminal.

The design capacity of the shiploader is 1,200 tonnes per hour, it will be delivered fully erected to site.

The machine will run on rails, with a towed tripper to divert the product from a wharf gallery conveyor onto a transfer belt, then to a loading boom belt.

The tailor-made shiploader Bedeschi shiploader will be luffing and slewing to in the design phase. facilitate all loading operations required.

The target is to set up all the entire application and activities without interfering with operational activities at the terminal.

Design, engineering and construction for this machine are based on Bedeschi’s knowhow, and are optimized and customized according to the client’s requirements.

Specific design, characteristics and performances are developed and integrated jointly with the client’s technical team.

Cleveland Cascades Ltd Global leader in bespoke dry bulk loading chutes

Ship Loaders

Silo Loaders

Truck Loaders

Cleveland Cascades are Specialists in the design and manufacture of bespoke dry bulk loading chutes.

Our bespoke solutions are designed to meet each customer’s specific requirements from a tool kit of proven components, utilising the expertise of a team of specialist in house design engineers.

Tanker Loaders

We lead the loading chute industry & set the standard for dust emissions and environmental pollution control in dry bulk handling.

Our worldwide reputation is built on high quality, well-engineered, robust, high performance chutes, backed up by excellent customer service and global lifetime product support.

Contact Cleveland Cascades Ltd Unit 22, Dukesway, Teesside Industrial Estate, Thornaby, Stockton-on-Tees, Cleveland, TS17 9LT, United Kingdom Tel: +44 1642 753260 | Fax: +44 1642 753270 E-mail: enquiries@clevelandcascades.co.uk | Website: www.clevelandcascades.co.uk

NEWS

FLSmidth announces completion date for the acquisition of TK Mining CREATION OF A LEADING GLOBAL MINING

AUGUST 2022

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ENGINEERING & EQUIPMENT

TECHNOLOGY AND SERVICE PROVIDER

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On 11 August, FLSmidth announced that all conditions and requirements for the acquisition of thyssenkrupp’s Mining business (TK Mining) have been met. In accordance with the sale and purchase agreement, final closing of the transaction will take place on the last business day of the month.

Accordingly, the transaction will close on 31 August 2022. All regulatory clearances have been obtained without imposition of any competition-related remedies.

TK Mining is a leading full-line supplier

of solutions for mining systems, material handling, mineral processing and services.

The combination of FLSmidth and TK Mining will create a leading global mining technology and service provider with operations from pit-to-plant with a strong focus on productivity and sustainability.

FLSmidth Group CEO Mikko Keto commented: “Today’s announcement marks a significant milestone in the history of FLSmidth. We are very excited to soon welcome our ~2,000 new colleagues and TK Mining’s customers to FLSmidth. The completion of the acquisition contributes

to FLSmidth’s strategic growth ambitions within Mining. Our combined company will offer customers a stronger, complementary value proposition, while creating significant aftermarket opportunities, driving value creation through compelling synergies and further strengthening our sustainability and digitalization agenda.”

Further impact of the transaction, including updated financial guidance for 2022, will be communicated no later than in connection with the release of FLSmidth’s financial results for the first nine months of 2022 on 8 November 2022.

Van Beek introduces ‘Sisca’ online customization configurator With the introduction of Sisca, an online configurator for screw conveyors, Van Beek once again demonstrates its ability to innovate.

This unique customization tool enables Van Beek’s knowledge and expertise to be available 24/7. “With Sisca, we offer customers in our sector an unrivalled opportunity to receive a customized quote, including delivery times, in near real time,” says Perry Verberne, Van Beek’s managing director.

With its innovative configurator Van Beek takes a stride forward in the configuration procedure for screw conveyors. Sisca enables Van Beek customers to independently configure a customized solution, which is beneficial in terms of both price and delivery time.

This makes it possible to configure a screw conveyor within the available budget, and without compromising on the high standards of quality for which Van Beek is recognized.

REVOLUTIONARY TOOL Verberne: “We can now share with our

It offers a wide range of possibilities when it comes to specifications, such as the required design, the type of material, various cleaning options, and whether the screw conveyor will be located in an environment where, for example, ATEX guidelines may be in force.

3D-MODEL

customers the expertise that is inside the minds of our engineers. The online engineer is certainly not a replacement for our sales engineers. However, it collates our customers’ initial information requirements regarding price and delivery time.” The Managing Director is very proud of this revolutionary tool, which was developed in-house. Whereas existing configuration tools in mechanical engineering only offer the possibility of linking standard modules, Sisca excels in well-thought-out customization. The online engineer always takes into account the customer’s specific product and production process.

In short, the innovative online engineer is extremely userfriendly, has a logical structure, and allows users to manage projects via their own account.

Sisca offers the opportunity to be advised at any time of the most suitable screw conveyor system. Within an hour, the designed configuration is emailed not only as a quote, but also as a fully developed 3Dmodel. “Personal contact with our specialists remains possible at every stage of the configuration process. After all, Sisca is a unique addition, not a replacement for, the more than 80 years of knowledge and experience that Van Beek has accumulated,” Verberne explains.

#StrongerThanEver

Boost productivity and sustainability with an even stronger FLSmidth team FLSmidth’s range of material handling equipment, digital solutions and local expertise continues to grow – and can significantly boost your operations.

Our portfolio of material handling and stockyard equipment – in combination with innovative digital technology and localised service – mean we have the knowledge and tools to improve your productivity in an integrated, cost-effective and sustainable manner.

more and more customers are opting for Predictive Maintenance

ENGINEERING & EQUIPMENT

PREMAS® 4.0 by AUMUND

A display installation of PREMAS® 4.0 on a bucket elevator in the AUMUND showroom in Rheinberg. The main components of the Predictive Maintenance Solution are mounted on a life-size model of a bucket elevator boot (photo AUMUND).

predominantly on cement industry customers, the PREMAS® 4.0 system is of interest to any industry with operations which depend on 24/7 reliability of conveying technology, as demonstrated by many AUMUND reference installations.

PREMAS® 4.0 INSTALLED DURING CONVERSION OF THE WORLD’S HIGHEST BUCKET ELEVATOR

AUMUND India incorporated PREMAS® 4.0 in February 2022 into the conversion of the highest bucket elevator in the world, at 175.3m, at the ACC Wadi Cement Plant (Holcim Group). [See ‘AUMUND India rebuilds the world’s tallest belt bucket elevator of 175.3m’ on p68 of the April

AUGUST 2022

Currently the majority of applications of the Predictive Maintenance Solution are on AUMUND machines such as belt and chain bucket elevators, pan conveyors and the silo discharge system CENTREX®.

Customers of the AUMUND Group member companies SCHADE Lagertechnik and SAMSON Materials Handling also use PREMAS® 4.0 on their stacker and reclaimer equipment and mobile material feeders respectively. PREMAS® 4.0 users include concerns such as Dyckerhoff, Sabanci Holding, HeidelbergCement, Saudi Cement Company, Fujairah Cement, Union Cement, Aditya Birla Group, Shree Group, Holcim, Votorantim and Conch Cement.

Although the current focus is

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The digital Service, PREMAS® 4.0 Predictive Maintenance Solution, which was launched at the beginning of 2021, has already proved its viability in practice in many installations all over the world. The online maintenance system, which was developed for the AUMUND Group with the technical participation of PREMAS AG, Switzerland, has been brought to market over 100 Systems in shortest time.

AUMUND Fördertechnik, Rheinberg, Germany, SAMSON Materials Handling, Ely, GB, SCHADE Lagertechnik, Gelsenkirchen, Germany and all the international AUMUND subsidiaries have each installed and successfully commissioned PREMAS® 4.0 Systems in their sales areas.

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ENGINEERING & EQUIPMENT www.drycargomag.com

Test device for sensor monitoring of clamping connections on bucket elevators (photo AUMUND). issue of Dry Cargo International.] Titan Cement in Greece is benefiting from the advantages of the digital system in the conversion of a chain bucket elevator not originally manufactured by AUMUND. With PREMAS® 360° Maintenance Packages AUMUND USA was also successful with conversions of AUMUND bucket elevators for Lafarge Ravena (also Holcim) and Nevada Gold Mines, as was AUMUND Asia, Hong Kong, with Sampyo Cement in South Korea. The AUMUND Group PREMAS® 360° Maintenance Packages: Basic, Advanced and Premium are adapted to the various maintenance strategies, requirements, and budgets of customers.

Soon AUMUND will also be able to monitor the clamping connection on a bucket elevator with PREMAS® 4.0. Tests by development engineers at AUMUND and PREMAS have been successful, and a trial application of clamping connection monitoring is currently underway at a cement plant in Poland.

AUGUST 2022

PREMAS® 4.0 – MUCH MORE THAN

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JUST DATA COLLECTION

The digital service combines the latest sensor technologies with data collection and analysis, enabling early recognition of wear and ageing of important machinery components of conveying equipment.

PREMAS® 4.0 gives 24/7 online information in real time about the condition of the machine, provides a forecast of the estimated remaining lifetime of critical components, and enables planning of maintenance and spare parts requirements in advance, which in turn allows action to be taken in time to prevent potential problems.

SERVICE CONCEPT OF THE AUMUND GROUP BUILT ON TWO PILLARS PREMAS® has been the flagship of the customer service strategy of the AUMUND Group since 2004. The purpose and objective of PREMAS® is to offer a comprehensive maintenance programme for all kinds of bulk materials handling equipment in the cement industry, in power plants, in the iron and steel industry and in many other key areas.

The service concept of the AUMUND Group is today built on two pillars, the classic in-person analogue on-site inspection of PREMAS® Preventive Maintenance Service, carried out by certified personnel, and the new predictive digital monitoring system PREMAS® 4.0 Predictive Maintenance Solution. The PREMAS® 4.0 online monitoring solution which was launched at the beginning of 2021 has already proved its viability in

practice in many installations all over the world. At the same time PREMAS® 4.0 is part of the PREMAS® 360° Maintenance Packages which have been on the market since the end of July 2021.

ABOUT THE AUMUND GROUP The AUMUND Group is active worldwide.

The conveying and storage specialist has special expertise at its disposal when dealing with bulk materials. With their high degree of individuality, both its technically sophisticated as well as innovative products have contributed to the AUMUND Group today being a market leader in many areas of conveying and storage technology. The manufacturing companies AUMUND Fördertechnik GmbH (Rheinberg, Germany), SCHADE Lagertechnik GmbH (Gelsenkirchen, Germany), SAMSON Materials Handling Ltd (Ely, Great Britain), TILEMANN GmbH Chains & Components (Essen, Germany) as well as AUMUND Group Field Service GmbH and AUMUND Logistic GmbH (Rheinberg, Germany) are consolidated under the umbrella of the AUMUND Group. The global conveying and storage technology business is spearheaded through a total of 20 locations in Asia, Europe, North and South America and a total of five warehouses in Germany, USA, Brazil, Hong Kong and Saudi Arabia. DCi

ENGINEERING & EQUIPMENT

The economics of A well-designed conveyor system controls the maximum load at the highest achievable volume, with the safest possible work environment (all images ©Martin Engineering).

AUGUST 2022

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workplace safety

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Conveyor safety is not a modern trend bred by government regulation; it’s a common-sense idea as old as the first conveyor design, writes R. Todd Swinderman/ CEO Emeritus, Martin Engineering. In the modern age, safety is a key factor in worker protection, reduced insurance rates and a lower total cost of operation. There are several hurdles to the installation of safety equipment, the biggest of which is the nearuniversal use of the Low Bid process.

When companies buy on price (Low Bid) the benefits are short-lived and costs typically increase over time. In contrast, when purchases are made based on lowest long term cost (Life Cycle Cost), benefits usually continue to accrue and costs go down, resulting in a net savings over time.

[Figure 1] Safer and more reliable equipment is easier to service, has a longer life and is less expensive to maintain.

Organizations that embrace safety show significant performance advantages over the competition. The proof is reflected in reduced injuries and greater productivity, along with above industry average financial returns and higher share prices.

Justifying safety investments is greatly enhanced by quantifying what most financial managers refer to as “intangible costs”, i.e., injuries, lost labour, insurance,

Inefficient conveyor operation leads to unplanned downtime, fugitive materials and increased maintenance. morale, legal settlements, etc. However, managers and accountants have been trained to think about saving direct costs to justify investments.

When conveyors don’t operate efficiently they have unplanned stoppages, release large quantities of fugitive materials and require more maintenance. Emergency breakdowns, cleaning of excessive spillage and reactive maintenance all contribute to an unsafe workplace.

SAFETY PAYS Numerous case studies revealing the positive relationships between safety and productivity are backed up by organizations that gather global statistics on accidents

Figure 1: Life cycle costs.

and incidents. The simple formula for return on investment (dividing savings by cost) does not capture the potential savings from safety investments. Several organizations provide detailed and regional statistics on the cost of accidents [Fig. 2].

Lacking specific historical data, managers can turn to numerous reliable sources that provide the probability of incidents that can be used to estimate tangible and intangible future costs [Fig. 3].

The financial technique used to compare options is called a ‘net present value’ (NPV) analysis. NPV compares different investment options with varying costs and savings (cash flows) over time, discounting them by the company’s cost of

Figure 2. Regional statistics on costs of accidents.

ENGINEERING & EQUIPMENT

money. For example, an internal risk analysis shows a facility has 30 workers exposed to conveyor hazards. The estimated probability of the different classes of accidents (fatal, lost time and first aid) is multiplied by the cost of these accidents to reveal what could be invested to reduce the incident rate by half [Fig. 4].

Assuming the life of the conveyor is 20 years and the cost of money (discount rate) is 5%, the available additional investment would be about $750,000 more in design time to accomplish the 50% improvement in safety. By choosing the lowest-priced bid to meet the minimum safety requirements, the short-term expenditure ends up costing considerably more over the 20-year lifecycle [Fig. 5].

By spending $750,000 more to exceed the minimum safety and design requirements and reduce the accident rates by 50%, the annual projected cost of accidents drops from $140,813 to $70,407.

Measured in today’s dollars — including the additional investment of $750,000 — the projected savings over the 20-year term at 5% are about $1.2 million by investing more upfront. If, after further analysis, the savings are found to be less — perhaps only a 25% reduction in the cost of accidents — the upfront investment is still justified over the long term. Even though it takes a little more effort to collect data and do a financial analysis, in the end, NPV consistently proves that safety does indeed pay.

Figure 3.

Accident rates per 100,000 industrial workers per year.

ABOUT MARTIN ENGINEERING

Figure 4. Estimated total annual cost for all accidents.

Figure 5. Annual accident costs for years 1 to 20.

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Martin Engineering has been a global innovator in the bulk material handling industry for more than 75 years, developing new solutions to common problems and participating in industry organizations to improve safety and productivity. The company’s series of Foundations books is an internationally recognized resource for safety, maintenance and operations training — with more than 22,000 print copies in circulation around the world. The 500+ page reference books are available in several languages and have been downloaded thousands of times as free PDFs from the Martin website. Martin Engineering products, sales, service and training are available from 17 factoryowned facilities worldwide, with whollyowned business units in Australia, Brazil, China, Colombia, France, Germany, India, Indonesia, Italy, Mexico, Peru, Spain, South Africa, Turkey, the USA and UK. The firm employs more than 1,000 people, approximately 400 of whom hold advanced degrees.

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ship-unloading — and loading — and all it entails

ENGINEERING & EQUIPMENT

A weight off

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Louise Dodds-Ely

Bruks Siwertell has completed the installation of a new high-capacity Siwertell ship-unloader at Colonial Group’s Georgia Kaolin Terminals, in Savannah, Georgia,

USA. The fully enclosed screw-type system now delivers very efficient dustfree cement handling, supporting the company’s strategy for sustainable

cement import growth.

“This Siwertell unloader is a great machine, ideally suited for the terminal,” says Bengt Svensson, Contract Manager,

AUGUST 2022

Bruks Siwertell commissions new cement unloading system for Colonial

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ENGINEERING & EQUIPMENT AUGUST 2022

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Bruks Siwertell. “It will play a significant role in helping Colonial achieve its ambitious efficiency and environmental goals; early feedback has been extremely positive.”

Bruks Siwertell worked closely with Colonial and its engineering team to develop a customized solution that would

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successfully integrate with the existing infrastructure at the terminal. “This planning really paid off,” continues Svensson.

“We had a very tight window for the installation, to ensure minimal disruption for Colonial’s customers, which meant working long hours, but the result is worth

it,” he added.

The flexibility of Siwertell unloader technology enables it to handle various designs and capacities of geared vessels, and supports the company’s switch from bagged cement deliveries to bulk. “Colonial now benefits from the terminal’s increased unloading capacity, which in turn delivers

ENGINEERING & EQUIPMENT

faster vessel turnarounds on the jetty, and with that, cost-savings,” he notes.

Environmental considerations were also a key factor in Colonial’s choice of equipment, and because the Siwertell

unloader has an enclosed dry bulk material conveying line, ensuring no dust emissions or spillage, it is permitted to operate within this historic port and complies with its strict environmental regulations.

The Siwertell 490 F-type ship-unloader offers high through-ship efficiencies and a rated cement handling capacity of 800 tonnes per hour, discharging vessels up to 55,000dwt.

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Ireland UK

Poland

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Buttimer Engineering Cahir Business Park Cahir Co. Tipperary E21 8 Ireland

We don’t just work for our clients We work with them.

Phone: +353 52 744 1377 Web: www.buttimer.com Email: info@buttimer.ie

BESPOKE BULK PORT EQUIPMENT. FULL RANGE OF HOPPERS AVAILABLE

www.docksolid.com Our DOCKSOLID® hoppers are designed and fabricated in Cahir, Co. Tipperary and are sold under the Docksolid Brand in Ireland, United Kingdom and Poland and branded as Manta in the rest of the world by our partners Terex Prostack www.terex.com/prostack

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NEUERO’s loading and unloading expertise in demand around the world

AUGUST 2022

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The NEUERO 400tph Multiport M400 ship-unloader at Busan.

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NEUERO has been a major manufacturer of mechanical and plant engineering since 1914. It stands for mechanical engineering, innovation and maximum customer benefit.

The company’s aim is to offer the best shiploading and unloading in the world to make it easier for its customers to work at ports and to ensure the supply of goods worldwide.

With over 5,000 built references in over 140 countries, NEUERO is a respected manufacturer of shiploading and unloading equipment. Several tonnes of grain are handled every hour worldwide using NEUERO machines.

NEUERO’s machines are characterized by advanced, efficient, reliable and userfriendly design. The systems have the lowest maintenance and operating costs and thus ensure a fast return on investment.

All NEUERO equipment follows the best engineering practices, with quality German manufacturing and on-time deliveries. This high-quality, customized

equipment places NEUERO among the most popular global suppliers for the grain and grain by-product market. The company is also seeing great success in its unloaders that are used to handle alumina and petcoke. NEUERO is now also making unloading equipment tailored for wood pellets, PKS (palm kernel shells), as well as other biomass products that are becoming ever more popular to fuel electric power plants that are moving away from coal as a fuel source.

NEUERO’s aim is to supply every client with the most reliable, efficient, environmental friendly, and user friendly ship-unloaders and shiploaders possible.

Special attention is paid to using the most advanced and best designed components to make all equipment. The result provides a equipment solution that gives clients the lowest operating and maintenance costs while at the same time giving them the highest operating efficiency.

NEUERO also focuses specifically on

environmental issues, and it strives to deliver equipment that offers the lowest possible pollution to the environment. This also makes the work area safer for clients’ employees, as well as giving a clean work area for the neighbours of all clients.

NEUERO’s shiploaders and unloaders set standards worldwide.

NEUERO is ISO certified and has guidelines on work safety, health and the environment. More than 300 customers already rely on NEUERO’s expertise.

Continuous unloading performance is guaranteed, even during residual cleaning.

Less dust is emitted during loading with NEUERO’s special engineered loading head and noise reduction through its insulated machine houses. NEUERO’s lightweight designs make its machines very safe and environmentally friendly for handling.

TECHNOLOGICAL DEVELOPMENTS NEUERO works constantly on ways to improve operating efficiency in both

RECENT DEVELOPMENTS Like so many companies all around the world, operations have been affected by the war in Ukraine. Several projects that were under way in the Black Sea area are now on hold.

NEUERO has recently commissioned a 400tph (tonnes per hour) Multiport M400 ship-unloader at Busan (pictured).

NEUERO’s Multiport is available in a range of capacities, and offers the following: v unloading capacity up to 800tph, based on wheat; v supply via the low or medium voltage; v use of diesel generators possible; v stationary, rail or rubber-tyred steerable wheels; v broad coverage of the ship’s hold by horizontal and vertical telescopic tube; v auxiliary winch for residual cleaning on the boom for an excavator or front loader; and v if necessary, with explosion protection concept following ATEX guidelines.

TOWER v unloading capacity of up to 1,600tph, based on wheat; v movable on rails; v optional with a loading boom; v integrated auxiliary winch per boom; v two separate suction lines (50% each); and v integration of various conveyor elements, such as container scales, magnetic separators, etc.

The Flexiport is ideal for nonfree-flowing materials.

AUGUST 2022

NEUERO developed the Flexiport many years ago, to achieve higher efficiency for non-free flowing materials. The Flexiport unloader combines both a mechanical feeder and pneumatic conveying. The advantage of pneumatic is the ability to

Efficiency for small ships: for example, when unloading wood pellets from 2,000dwt vessels, an average of 70% was promised and delivered — including clean-up operation. This has already been proven in 2002 at the Essent plant in the Netherlands.

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Other continuous ship-unloaders offered

by NEUERO include: FLEXIPORT v pneumatic ship-unloading for non-freeflowing materials; v the vertical tube can be equipped with a rotating feeder to loosen up the product; and v full coverage of the ship’s hold due to additional extending and kick-in-kickout movement of the vertical boom.

unload to the ship hold’s bottom, vacuuming the material and avoiding the need for extra hoppers to lift the material during clean up as required by a mechanical unloader.

The unloading process is different from regular free-flowing materials, because it is carried out with layers instead of positioning in one point and going down (inverted cone).

Nowadays, NEUERO incorporates many features like blower redundancy for high capacity and measurement sensors for vibration and temperature for the bearings.

This is also available in the company’s Multiport pneumatic equipment. It is interesting that it is required in all bucket elevators but not in the main drive of a ship unloader.

ENGINEERING & EQUIPMENT

capacity increases, and power consumption reductions. Just as important, the company is always making changes to make the equipment last longer, and lower maintenance costs. NEUERO studies the flow of material in the conveying line to learn ways to improve the flow which reduces wear on parts, and improves the operating efficiency. Constantly monitoring of temperature and vibration of key bearings helps NEUERO fine-tune its designs, and this information is provided on the clients’ PLC so they can monitor these items and make any necessary repairs when the equipment is not in operation.

NEUERO also offers its clients a telediagnostic service so that it can more efficiently assist them with any questions or concerns they have with their equipment.

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ENGINEERING & EQUIPMENT

Bedeschi expands its ship-unloading portfolio with strategic acquisition

AUGUST 2022

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Bedeschi ship-unloader delivered fully erected to Ashdod Port.

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Bedeschi is targeting the development of bulk handling business as a strategic goal.

Ship-unloading technology has been pushed using in-house know-how, growth, as well as acquisitions.

To complement the bucket unloaders already part of Bedeschi’s line of equipment, mainly applied to highcapacity handling of coal and ores, the company has now added chain elevator unloaders. This technology, even though it was already part of Bedeschi’s portfolio, has been boosted by the acquisition of the grain and oilseeds bulk handling business of Golfetto Sangati (part of GEA). Thanks to this, Bedeschi will be able to handle products ranging from grain to meals, fertilizers to clinker with over 20 machines operating worldwide.

Bedeschi can offer a wide range of mechanical ship-unloaders for vessels up to 120,000dwt, fixed or mobile on rails or wheels with handling capacity from

300tph (tonnes per hour) to 2,000tph, as well as pneumatic ship-unloaders for vessel up to 20,000dwt, fixed or mobile on rails or wheels with handling capacity from 100tph to 300tph.

Bedeschi’s turnkey solutions are designed based on the requirements of its clients, handled material and port structure. Therefore, the company’s R&D department is continuously working to provide the most appropriate solutions.

One of the latest ship-unloaders manufactured by the company has just been delivered to Ashdod port in Israel.

In addition to this, Bedeschi recently supplied three automatic dedusting ecohoppers to Ashdod Port. One hopper is used to unload clinker to truck at speeds of up to 800tph, and two are used to unload grain at a rate of 550tph. A filtering system prevents air pollution during filling and discharging.

In the complete process flow, the two

conveyors will receive grain material coming from Bedeschi’s continuous shipunloader under operation.

This ship-unloader will operate at a capacity of 1,200tph, and will feature a cutter able to unload free flowing as well as non-free flowing (meals, DDGS) materials.

Enhanced operation with increased capacity can be also achieved with the full environment respect. The shipunloader will be operational by the end of 2022. One new unit will be put in operation in 2023 in UK for Cargill. The supply includes one ship-unloader for grains and meals with an 800tph unloading capacity.

Thanks to the expertise gained with over 20 successful installations worldwide and to the ongoing upgrading process by the design and R&D team, Bedeschi can offer special, custom solutions, for any technical and operational requirement.

Two thyssenkrupp continuous ship unloaders on a vessel for shipping.

Two thyssenkrupp continuous ship unloaders have started operation (and below, right).

capacity of 3,000 tonnes. Both unloaders were loaded onto one ship and lifted directly onto the jetty at the destination port after shipment.

AUGUST 2022

Self-propelled modular transporter (SPMT) moving the thyssenkrupp continuous ship unloader to the jetty for shipping.

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thyssenkrupp has supplied two continuous ship-unloaders to unload coal from vessels ranging from 50,000 to 100,000dwt. The unloaders each have a nominal capacity of 1,250 tonnes per hour, for a subsequent conveyance of the bulk material from the jetty to a power plant. The entire project was carried out by thyssenkrupp Mining Technologies specialists from Germany and China in the face of the special challenges presented by the Covid-19 pandemic.

To minimize the amount of work at the customer’s jetty, the unloaders were completely erected in China and shipped in a fully assembled and pre-commissioned condition. The transport of the 1,300tonne and 43m-high machines from the assembly site to the ship was carried out by a self-propelled modular transporter (SPMT) with a configuration of 120 axles.

The lift from the SPMT to the ship was carried out by a floating crane with a lifting

ENGINEERING & EQUIPMENT

Two thyssenkrupp continuous ship-unloaders begin operations

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ENGINEERING & EQUIPMENT www.drycargomag.com AUGUST 2022

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Keeping ship-unloaders — and loaders — moving reliably As part of a shiploader upgrade for Emerald Grain, Conductix-Wampfler supplied a conductor rail solution based on the 0813 series incorporating ProfiDAT® data transmission system to provide a reliable power + data connection to the travelling shiploader. This system replaces a (nonConductix-Wampfler) plastic chain arrangement, that failed regularly — and sometimes catastrophically.

Ship-unloaders and loaders are an “We have sold various products for use indispensable part of the bulk handling in grain handling, most notable at grain market, and their importance and reliable export terminals. These products include availability is reinforced by the Ukraine- conductor rails, hazardous area sliprings Russia conflict.

Different routes are explored, and these require investments to modernize existing structures or to engineer new facilities for an efficient handling of raw materials or various types of agricultural commodities like grain for instance.

As a country rich in natural resources and agricultural land, Australia exports a wide variety and quantity of bulk cargoes, for which there are many shiploaders at various terminals.

Even when imports are lower, ship-unloaders are in use, too.

Stuart Wheatly, Local Market Manager for Bulk Handling at Conductix-Wampfler in Australia, reports convincingly about products and solutions that Conductix-Wampfler supplies for WICET (Wiggins Island Coal Export Terminal) machines in this market, using some shiploader – level winding cable & hose reels. examples:

and radio remote controls. Our main customers are all the main players into the market like Graincorp, Emerald Grain and CBH.”

There are several grain-handling shiploaders around Australia which use Conductix-Wampfler Conductor rails for their long travel power supply. Note that this is quite a demanding application since the shiploader can be parked in one location for extended periods of time drawing current when loading a ship. Therefore, it is important that a suitably size high amperage conductor rail system with appropriated number of collectors is used. It is also imperative that the conductor rail systems are maintained and regularly cleaned to ensure no hot spots (localized heating) occur that can lead to damage of the rails.

Wheatly continues highlighting the advantages of the Conductix-Wampfler services for a proper maintenance and to ensure continuous running, long-life reliability and further upgrade of customer equipment.

“Emerald Grain have a shiploader at the Port of Melbourne which was refurbished in recent years. The original shiploader featured power + control connection for long travel via two plastic cable chains. These chains (not sold by Conductix-Wampfler) experienced multiple failures during their service life, including falling from height, which totally disabled the shiploader!” Wheatly said.

As part of the shiploader upgrade, Conductix-Wampfler supplied a conductor rail solution based on the 0813 series incorporating ProfiDAT® data transmission system to provide a reliable power + data connection to the travelling shiploader.

“It is interesting to have a look to the whole portfolio. Today Conductix-

ENGINEERING & EQUIPMENT

WICET (Wiggins Island Coal Export Terminal) shiploader – level winding cable & hose reels.

The answer to your bulk handling questions Ship unloaders

Road mobile ship unloaders

Storage & reclaim

Convey units

Truck loading

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Cable festoon systems at Haypoint coal shiploader and for Portland alumina ship-unloader (pre-assembled).

moving telescopic chute (telechute). For fixed booms, the festoon systems are relatively conventional, but for luffing booms the trolleys need to be specially designed to hold the cable as the boom moves through a range of angles. Typically, the festoon systems offered on luffing booms are square track systems, where the trolleys feature rollers that contact on all four faces of the diamond bar track for most positive tracking. Instead of standard cable saddles, these trolleys are fitted with

cylindrical pipe sections, which allow the cable to maintain its curved support through all boom angles. “These trolleys also feature a reinforced design to withstand the additional loads exerted due to the luffing action of the boom,” says Wheatly.

Thanks to Stuart Wheatly, and here only using Australia as an example, one can see how broad Conductix-Wampfler’s product range and solution offering is today. With a continuous drive to innovate and propose new solutions, the most demanding requests of customers in the bulk material handling market can be met.

ENGINEERING & EQUIPMENT

Wampfler has supplied cable reels for long travel power, and hose reels for water supply on various shiploaders and unloaders. These are powered by our proven technology with MAG Drive for mono-spiral spools or alternatively large VFD-driven levelwinding reels. These motor-driven reels are fitted on ship-loaders handling a variety of media e.g. iron ore, magnetite, coal and cement,” Wheatly adds.

Conductix-Wampfler also supplies spring-operated cable reels for use on shiploader telechutes. These spring reels are usually specially epoxy painted to resist the aggressive ‘over water’ seaside environment.

The company is ready to innovate: “Beside standard cable version, we have recently developed a fibre-optic solution which has been already appreciated and ordered by different customers willingly to handle multiple signals and video connection to cameras on the telechute,” explains Wheatly.

Cable festoon systems are another classical example. Those systems are used on jib booms (both fixed and luffing type) for connection of cables and hoses to a

Mexico’s new ultra-efficient agri-bulk terminal underpinned by Siwertell unloader All photos: Bruks Siwertell.

seeds without any loss of efficiency.

EFFICIENCY REDUCES COSTS “Grupo Gramosa invested US$85 million in the PETRA terminal as it saw an opportunity to reduce the cost of raw materials for an animalfeed facility, achieved by getting more materials into the plant at a lower cost due to greater efficiency,” explains Jesus Mil Linares, Terminal General Manager, Grupo Gramosa.

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able to offer unmatched grain handling and environmental protection. Underpinning these exceptional capabilities is a single railmounted Siwertell ST 640-M ship-unloader.

It has a continuous rated capacity of 1,200tph (tonnes per hour) and a peak rate of 1,320tph, discharging vessels up to 80,000dwt. The unloader’s seamless flexibility enables it to handle a number of different grains such as corn, soya meal, dried distillers grains (DDGs), and canola

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A new Siwertell ship-unloader in the port of Veracruz, Mexico, is offering such high levels of grain handling efficiency that it is expected to meet its owner’s planned growth for the next 40 years, writes Patrik Henryson.

The Port of Veracruz, in east-central Mexico, is being developed into one of the most advanced port terminals in the world.

Accessing global waters via the Gulf of Mexico gateway, the port is undergoing a US$ billion redevelopment project, which will quadruple its installed capacity to reach more than 90 million metric tonnes by 2030. Part of this development is five new terminals and a new cargo processing and logistics area.

Integral to this development is Grupo Gramosa’s Puertos Especializados Transnacionales (PETRA) new agri-bulk terminal. It was planned, designed and built for the specialized handling of solid, liquid and semiliquid agricultural bulk, with a storage capacity of 126,000 metric tonnes of dry bulk and 38,400 metric tonnes of liquids.

PETRA is now operational, and from the outset, its dry bulk import facility has been

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DECADES OF GROWTH “Furthermore, if you consider commodity prices scaled up alongside logistics, with a vessel costing up to US$35,000 a day, we are in a much better position to negotiate more favourable rates. We are faster than any other agri-bulk terminal in Mexico, and offer as low as 0.01% losses, with others reaching around 0.5%, if not more,” he explains.

“One operator is required for the unloader, which means we are using fewer resources as the terminal is fully mechanized from unloading to truck or

rail-car loading,” Linares says. “They can comfortably sit in an air-conditioned control cabin, or operate the unloader via remote control, which gives us great flexibility.”

Linares highlights that the efficiency of its Siwertell unloader will meet the terminal’s planned growth for the next forty years. Other benefits include the capability of accommodating an extended draught. “We can cater for larger vessels with a draught of 20m, while other terminals are limited to 13m,” he says. “The terminal also has a highly efficient, looped rail network, which is connected to the region’s two main railway lines, Ferromex and Kansas City Southern de México.”

PETRA’s main Siwertell unloader operator, Eric Marquez Martinez, compares

the Siwertell unloader to driving a Ferrari.

“A few times the captains have asked me to slow down as I’m going too fast!”

CHOSEN ON PERFORMANCE Grupo Gramosa is a progressive company dedicated to the commercialization and transformation of agricultural bulk, and the preparation of balanced animal feedstocks.

It originally ordered the Siwertell shipunloader in 2018. Bruks Siwertell delivered the unit fully assembled in 2019, with commissioning and operator training being carried out in 2021.

Gramosa chose Siwertell technology because it out-performed all other competitor systems during a four-month selection process; particularly the two 600tph pneumatic systems it was initially

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Talking about its new Siwertell unloader, Linares could not speak more highly. “The Siwertell unloader is formidable! With this system we are positively contributing to our beloved country, Mexico, reducing the ‘market basket’ cost by being more efficient in our logistics chain.

“The unloader minimizes terminal operating costs. In addition, there are close-to-zero dust emissions, no disturbing noises, and no spillage,” Linares notes.

“This means no cargo losses, which is particularly important when it comes to expensive commodities such as corn, which is currently priced in the region of US$350 per metric tonne and DDGs at US$650 per metric tonne.”

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considering.

The analysis showed that a single Siwertell ST 640-M ship-unloader would be a more economical solution in the long term. The operating costs comparing two pneumatic unloaders, delivering an equal total capacity, was lower. Also, the Siwertell unloader offered cost savings from reduced berth occupancy as through-ship efficiency was greater. Furthermore, the quality of grain shipments was also considered.

A statement from Gramosa at the time of the order states that: “The Siwertell system was selected after considering many factors and multiple equipment comparisons. Analysis included operating principles and mechanisms, investment costs, as well as operating costs.

“An important factor was cargo loss and damage. We will handle a number of different grains at the new terminal such as corn, rice, wheat, soya beans and canola seeds. The low conveying speed of the Siwertell screw-type unloader means that the grain is not damaged during handling,

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which will give us added value and differentiate us from our competition.

“Another consideration in the selection of Siwertell equipment was the balance of performance across multiple grains such as soybean meal and DDGs. Other systems on the market did not compare. For example, in the case of pneumatic equipment, it is very efficient at handling grains, but offers very low efficiency, translating to high operating costs, in soybean meal and DDGS.” “We are faster than any other agri-bulk terminal in Mexico,” says Linares.

A COMPETITIVE EDGE “It is a great endorsement of our technology, not only for it to be chosen following detailed analysis for several months to compare it with other equivalent capacity systems, but also now that it is operational, for those comparisons to be a reality for the owner,” says Patrik Henryson, Sales Manager, Bruks Siwertell.

“Thanks to the tremendous growth in

the agri-bulk segment over the last few years, grain is now the third largest cargo that Bruks Siwertell machines handle,” Henryson explains. “We understand that grain handlers have to meet some of the most challenging dry bulk material demands, and their dry bulk equipment must match these, offering consistently high capacities for maximum profitability, but also maintaining the quality of shipments through sensitive handling.

“We talk about our systems offering grain handlers a competitive edge, and this is exactly what PETRA’s new Siwertell system is now delivering. The unloader is very well suited to the job it has been ordered for. It is so efficient that it directly lowers operating costs, and enables Grupo Gramosa to negotiate better commodity rates.

“The advantages offered are incomparable to other technology, and the Siwertell unloader is so efficient that it will reliably meet the terminal’s growing capacity requirements for decades,”

VIGAN oilseed ship-unloader installation on the Rhine (and left).

SOMETIMES, VIGAN MACHINES ALSO ENJOY A WATER CRUISE

BUILDING MACHINES UNDER ONE ROOF HELPS FASTER COMMISSIONING

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A total mounting time of three weeks might seem fast … and it is. This typical VIGAN approach facilitates short mounting times all over the world, whether in Germany, Taiwan, or Bangladesh. Having all parts of its machines being built under the same roof allows VIGAN to have a full overview on every detail of the machine.

And all equipment can be pre-mounted completely in VIGAN’s large production halls where its team also realizes the complete electrification.

Customers say that this approach is unique to VIGAN, compared to other manufacturers which choose to build machines — or parts of them — in other places around the world, where labour is cheap(er).

Harmonization of every functional part of the final equipment is not

an easy task if it needs to be done abroad.

VIGAN is therefore sticking to its approach of keeping production in Belgium and to only use the best possible third-party components.

VIGAN machines need to unload from when a ship sails in, until the vessel sails out, and can therefore be operating for long periods. Engineers have reduced wear on components by opting for the most resistant alloys and by minimizing cargo impact through conceptual design and electronics. A real round section elbow, optimal suction control, adapted airspeed through powerful turbines and frequency steering are standard.

All the auxiliary equipment in VIGAN’s machines — moto reducers, high-speed engines, electronic components, compressors, etc. — are all made to the highest standards. Next to their reliability, their suppliers also have good servicing networks along the globe. Globalization also smoothes the connection/interfaces build-up with the downstream part of facility.

Saying VIGAN provides turnkey solutions in unloading is therefore not to be taken lightly. Dry commissioning is taking place at every stage, from the mechanical mounting to the final connection of the machine — until every single device of the VIGAN unloaders

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Just a few weeks ago VIGAN successfully installed a fifth unloader — in less than five years — in Germany, along the Rhine, close to the border with the Netherlands. It was an exciting project in Spyck where many secondary conditions had to be respected.

As usual, the machine was built and completely pre-assembled in the VIGAN factory in Nivelles, Belgium. The customer chose a colour that blended nicely into the environment. Next to strict dust emission specifications, the customer required a low noise emission machine.

Based upon VIGAN’s experiences with its former silent machines and the one recently built for Brüggen in Lübeck (oats unloader, see picture on p66), VIGAN equipped the machines with every possible noise-reducing element: an acoustically sealed piping, a cabin with special noise-cancelling baffles, a specific orientation of the turbine exhausts, specific air thigh sealings… Needless saying that some of these developments will become standard in all VIGAN unloading machines of tomorrow!

In Spyck, erecting the machine on site wasn’t possible because of the facility’s location. On top of that, the area is a natural habitat for birds and the Rhine has strong currents at that geographical location.

Therefore, VIGAN engineers opted to assemble the machine on a spot nearby where the necessary space and access for cranes, forklift and other utilities could be facilitated. During the first two weeks, the machine was completely mechanically built up. A ship’s crane lifted the pneumatic unloader to bring it to its destination, thereby finishing the job in three weeks sharp. So yes, VIGAN also unloaded its unloader by the river!

ENGINEERING & EQUIPMENT

More than just bulk ships unloading via the fluvial network

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ENGINEERING & EQUIPMENT

Acoustically insulated machine at Brüggen, Germany. works properly.

But the customer also requires a ‘suction capacity’ as defined in the offer. As soon as possible, the VIGAN technician will co-operate with the local operators to begin the so called ‘wet’ or ‘hot’ commissioning: proof that the machine can suck the required capacity per hour. Based on this so-called nominal capacity and VIGAN’s experience over the years, the

company knows that its machines reach 75–78% efficiency, expressed as a percentage of the nominal capacity. These figures are high compared to nonpneumatic unloading techniques.

In general, one can say that pneumatic discharge became more energy efficient than ever with no damage done to the cargo. The closed-circuit build-up of the machine reduces contamination risk to a

complete zero, there are no spillages, and the technique is safe in its features, ATEX rules being covered. It would be said that VIGAN filters almost become air purifiers and, as stated earlier, noise emissions are strongly cancelled.

VIGAN offers fully customizable solutions wherever customers are located, even if its machines have to sail towards their locations.

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A ship’s crane lifts the VIGAN pneumatic unloader on its floating platform.

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ENGINEERING & EQUIPMENT

Road-mobile alumina unloader exceeds expectations in France

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All photos: Bruks Siwertell.

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Trímet France’s new Siwertell next- SPEEDING UP AT THE BERTH generation road-mobile unloader is now “One of the biggest challenges for us has operational, handling shipments of alumina been to reduce the time that a vessel stays so efficiently that it is exceeding owner at the berth,” explains a spokesperson for expectations; the unit’s remote control and Trímet France. The faster vessels can be digital capabilities are also proving turned around the higher the utilization beneficial, writes Jörgen Ojeda. rate of the jetty, delivering better Handling alumina, the valuable, powdery profitability for the terminal. With an bulk commodity used in the production of expected alumina intake of around 50,000 the endlessly recyclable metal aluminum, is metric tonnes into the port in 2022, the a Trímet France speciality. At the end of majority of which will now be handled with 2021, Bruks Siwertell enhanced these the new road-mobile unloader. capabilities further with the delivery of a Siwertell unloaders are based on screwnew Siwertell 10,000 S next-generation conveying technology and offer high, road-mobile unloader to the company’s continuous through-ship efficiencies. They alumina import facilities in France’s largest can reach into the corners of a vessel’s port, Marseille. hold, including Trímet France, under the part of Germanyhatch coamings, headquartered, because of the ns with this to reduce emissio y pp ha e ar e W Trimet Aluminum range of version electric Siwertell SE, principally movement in receives vessels the horizontal Trímet France from Greece and conveyor and Ireland, with the the pendulum largest standing at capability of the vertical arm, which around 14,000gt and the smallest close to also means that assistance from payloaders 6,000gt. Shipments of alumina are is kept to a minimum. discharged to silos, ready to be sent in rail “The mobility of the equipment’s wagons to a long-established aluminum- conveying arm is definitely an advantage for producing factory in SaintJean-de- achieving faster vessel turnarounds, and Maurienne, south-east France. allows us to operate everywhere in the

The new unloader features advanced digital capabilities. holds,” says Trímet France.

EXCEEDING UNLOADING EXPECTATIONS For around a year and a half, Trímet France leased an older Siwertell 10,000 S unloader from another Bruks Siwertell customer.

“We did this before deciding to buy a new, next-generation electric-drive model,” says the company.

“Environmental issues have an important place in our mind. So, we are happy to reduce emissions, and the noise of

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ENGINEERING & EQUIPMENT the engine, with this electric Siwertell version.”

The new unloader has a designed rated capacity of 130tph (tonnes per hour) for discharging vessels up to 10,000dwt, it also features advanced digital capabilities. Fitted with the Industrial Internet of things (IIoT) device, CompuLab, owners of nextgeneration models have safe, remote access to extensive monitoring, follow-up support, diagnostics and troubleshooting.

Trímet France highlights the additional performance capabilities of its nextgeneration road-mobile unloader. “The remote control is particularly useful,” says the company. “Operators are able to see

precisely if the unloading is efficient, so we can reach a discharge capacity of 150tph.

This is over what we expected. Also, the digital capabilities mean that Bruks Siwertell is able to check any problem that occurs on this Siwertell unloader in real time.” They also operate with a layer-bylayer unloading process, which minimizes the chance of airborne emissions from avalanches in the cargo hold. This is further reduced because of the equipment’s excellent hold reach.

For road-mobile unloaders, a dust filter is installed at the top of the loading conveyor. It creates negative pressure and minimizes the risk of dust emissions at the

AUGUST 2022

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Siwertell unloaders minimize material degradation, delivering huge benefits to the alumina industry.

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transfer point where material leaves the unloader and enters the receiving equipment. It automatically returns the collected dust to the conveying system.

MINIMIZING DEGRADATION MAXIMIZES PROFITS

In addition to offering efficient, environment-friendly alumina handling, with no spillage and very low energy consumption, the Siwertell unloader minimizes material degradation, which delivers a particular benefit to the alumina industry that goes further than the port.

During commissioning Trímet France noted that the remote control needed

ENCLOSING THE DUST Environmental protection legislation is often a driver for the adoption of enclosed dry bulk handling equipment, and prior to the Siwertell unloader installation, Marseille’s port administration had requested that Trímet France reduce its dust emissions.

All Siwertell ship-unloaders have a totally enclosed conveying line from the hold, where the inlet feeder draws material into the vertical screw conveyor from beneath the surface, to the receiving facility, offering close-to-zero dust emissions and eliminating any wasteful spillage.

“In the midst of soaring energy prices, any reduction in fines has a huge economic impact, and offers better cost control for the plant,” explains Jörgen Ojeda, Sales Director Mobile Unloaders, Bruks Siwertell. “We are not only keen for more

port operators to benefit directly from our market-leading alumina handling capabilities, but in addition to this, for these advantages to extend to substantial savings for the global alumina industry as a whole.”

SUPPORT BEYOND DELIVERIES Siwertell road-mobile unloaders provide a flexible, efficient solution for customers that have operations at more than one location. They can be folded down and relocated in under an hour. In the future, Trímet France plans to trial these capabilities, and transfer the equipment to its other sites to test if this solution could be successfully transposed elsewhere.

“We have really had a chance to get to know Trímet France and its operations, initially over its leasing of the older roadmobile,” continues Ojeda. “This was a valuable experience and over this time, we supported the company with any servicing needs.

“We hope that Trímet France will continue to benefit from the enhanced capabilities of its new road-mobile unloader for many years to come, and we look forward to helping the company with its plans for the future,” he concludes.

ALUMINA : A BILLION DOLLAR POINT Bruks Siwertell’s shiploaders and conveyors are well-established as preferred bulk material handling systems for alumina across the world, but it has even more to

offer.

Bruks Siwertell can demonstrate that Siwertell screw-type unloaders outperform established alumina unloading methods, including grab cranes and pneumatics, to such a degree that across the global alumina industry, savings could reach the billion US dollar mark.

Alumina is an expensive dry bulk commodity, and its spillage costs the industry millions of dollars every year.

During alumina unloading, some grab cranes can spill up to one and a half percent of a shipment. In contrast, independently observed tests with Siwertell road-mobile unloaders showed no loss of bulk material.

Eliminating spillage and minimizing dust creation deliver additional savings in cleanup costs as well.

Pneumatic systems do not incur spillage on the scale of grab cranes, but they are less efficient, demand more energy and cause significantly higher material degradation than Siwertell unloading systems. Alumina degradation, and the presence of powdery fines, has a major impact on energy costs in the smelting process; reducing fines, reduces production costs.

Few investments can totally transform an industry, but by making the switch to a Siwertell screw-type unloading system, this is exactly what is on offer, saving alumina plant owners and operators a fortune and delivering major environmental benefits. DCi

ENGINEERING & EQUIPMENT

further attention. “We were grateful to Bruks Siwertell for its reactivity to solve the issue, and are continuing to work together to find a solution to reduce noise from the screw because we are situated very close to neighbours,” it adds. Alumina is sensitive to degradation and therefore has a high propensity for the production of powdery fines. These have a significant impact on a smelting plant’s energy consumption; the lower the percentage of fines, the lower the temperature required in the process.

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Challenge your material limits Nothing should stand in the way of your productivity – least of all the materials you move. With our compact Hägglunds direct drive systems, you can adapt easily to the job at hand, taking advantage of full torque at an in昀nite range of speeds. And should an overload try to stop you, the drives’ low moment of inertia and quick response will keep your machines protected. We’ll support you too, with an agile global network and smart connectivity to bring you peace of mind. Driven to the core.

Hägglunds is a brand of Rexroth. www.hagglunds.com

grabs remain an essential tool — whether ashore or onboard ship

Orts DHS-B grab in use on a geared bulker.

ENGINEERING & EQUIPMENT

On board with bulk handling

Orts: specializing in grabs for the bulk handling market since 1972 v the equipment necessary to operate electro-hydraulic grabs; v independently operating dieselhydraulic grabs; v mechanical rope grabs; and v heavy lift beams.

GRABS

AUGUST 2022

Orts grabs are suitable for all types of dry bulk cargo. Of course, each type of material has its own physical characteristics, which could mean having to design a grab for specific products.

“However, in most cases, shipping and stevedoring companies need an ‘all-round’ grab, which they can use to handle different types of cargo efficiently,” explains Sigvard Orts, adding that scrap metal, pig iron, HBI and large stones also fall within the range

of such equipment too.

For this kind of bulk cargo the independent diesel-hydraulic grabs are available as orange-peel grabs with the ability to handle bulk cargo with high density. The biggest diesel-hydraulic orange-peel grab from Orts has a 12m³ capacity. This DHM 12m³ is in use to discharge HBI. In terms of productivity, Orts emphasizes that this is dependent on three key factors: low dead weight, kinematics and the closing force of the knives. In fact, a 12m³ Orts independent diesel-hydraulic grab could in theory achieve average loading rates of around 350–450 tonnes per hour (this depends on the density of the bulk cargo).

“The reliability of the grab is also

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Since 1972, German manufacturer, Orts GmbH has been producing a complete range of bulk-handling grabs for operators, stevedore- and shipping companies using mechanical-rope, electro-hydraulic and diesel-hydraulic equipment in either orange-peel or two-clamshell designs. Also, lifting beams up to 100t capacity are available.

The company is still family owned and the production facilities are located in Germany.

Right from the outset, the main business has been the construction and production of grabs for dry bulk handling.

Over the years, other equipment for transport, material handling, dredging and salvage became part of the product line: v electro-hydraulic grabs;

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extremely important when discussing productivity. It is pointless to buy a cheap grab, if it then breaks down during vessel handling, effectively prolonging the length of the port call. The grade of filling is also crucial; the better the grade of filling of the grab, the shorter the loading/discharge time,” stresses Orts.

ELECTRO-HYDRAULIC GRAB Electro-hydraulic grabs are designed and produced by ORTS GmbH. The electrohydraulic grab is equipped with an electric motor to power the hydraulic pump. The hydraulic pump brings the hydraulic cylinder into action, forcing grab buckets to open and close. Power is supplied to the electro-hydraulic grab via a power-cable that is situated at the crane jib with some additional equipment, e.g. cable drum, rope drum, guide rollers.

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INDEPENDENT DIESEL-HYDRAULIC GRABS (SINCE 1995) Fully radio-controlled diesel-hydraulic grabs have been constructed and produced

by ORTS GmbH for more than 25 years. A radio-controlled diesel hydraulic grab is a crane attachment that is operated independently of power cables or hydraulic lines; it is completely self-sufficient and is operated via a radio control device by the crane driver or another person at the loading room.

Thus, a radio-controlled grab can be used on any crane, since an external power supply is not necessary. A diesel engine inside the grab provides the power to drive the hydraulic pump. The crane operator has to send commands to move the buckets via a radio control. The way of controlling the movements of the buckets/clamshells is identical to that on an

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ORTS DHM independent diesel- hydraulic grab in action, fully controlled with the handy transmitter.

electro-hydraulic grab. They are fast, reliable and a better alternative solution compared to mechanical single rope grabs.

Another advantage to mechanical singlerope grabs is the lower dead weight and that there is no working/operational height requirement.

A few years ago ORTS also developed smaller diesel-hydraulic grabs for construction places, biogas-plants and truck cranes.

MECHANICAL ROPE GRAB Mechanical rope grabs can have one rope, two ropes or four ropes. Some rare special cranes need three-rope grabs. As the name suggests, a mechanical grab is operated by means of cable/rope systems only (‘pulley block/lifting block) and requires no power supply or hydraulic lines. A mechanical grab is used for loading and unloading of bulk materials in ports, at industrial plants, as well as in operations at ore smelting and blast furnaces. It is also used in port facilities. Here a purely mechanical grab is a great advantage, as they are mechanical and robust. No electronics, no hydraulic parts. ‘Pimped’ mechanical grabs with e.g. radio control and hydraulic system lose this advantage. Mechanical single-rope grabs are the oldest grab system. They are slower, and handle fewer tonners per hour, and have a higher dead weight compared with motor grabs (diesel hydraulic or electrohydraulic).

LIFTING BEAMS Beside the motor-grabs (electro-hydraulic and radio controlled diesel-hydraulic) and the mechanical rope grabs, ORTS GmbH also provides the construction and production of lifting beams, traverses and lifting frames.

RAM Spreaders for clean, efficient containerized bulk handling RAM Spreaders is continuing to develop its popular Revolver® containerized bulk handling system, which makes it possible to transport bulk product easily using containers — an interesting alternative to moving bulk using grabs. The system works by loading bulk directly to a hopper by grab, and loading the cargo to a container, which is then sealed. The container can then be transported and stored, with no need for undercoverage storage facilities. The Revolver® spreader is used to discharge the container — whether into a hopper, or vessel hold, or other.

The RAM Revolver® picks up and rotates the commodity through 360° using open-top containers with sealed lids as a form of loading, transportation, storage and unloading. It has been designed for flexibility to interchange with either a Reachstacker or a bridge crane, with other Revolver® models available for mobile harbour cranes, ship-to-shore cranes and ship crane use.

The CBH process is simple and effective, efficient friendly to the environment at a very low cost. The Revolver® CBH can handle all dry bulk commodities. RAM Revolver® has a SWL of between 35t for ship, bridge and reachstack application, 38t SWL for ship-toshore cranes and 45t for mobile harbour crane application. All equipment except the ship crane revolver, which has an on-board power unit, takes power from the crane supply.

Over the years, RAM has shown how the Revolver® can smoothly integrate into any port or logistics type at low costs — that being pit to ship, shed to ship, ship to hopper, etc.

There are a couple of challenges that must be overcome when handling bulk in containers. However, these are offset by the significant advantages of moving bulk in containers. These include: v Clean & green: no dust is generated or exposed to the environment as containers are sealed shut. v Multiple types of commodities can be stored in close proximity without the risk of cross-contamination or environmental impact. v Product protection: as containers are sealed shut, the system prevents loss of commodity or product degradation. v Flexibility: smooth integration into any port or logistics type at low costs — pit to ship, shed to ship, ship to hopper, etc. v Fast contingency: the bulk handling system has the ability to stockpile the commodity for the arrival of the ship. v Boxing clever: the traditional method of stockpiling bulk demands more consideration when planning — from storage facilities, environmental concerns to cross contamination.

Containerizing bulk means using existing infrastructures.

The RAM Revolver®.

www.ramspreaders.com

ENGINEERING & EQUIPMENT www.drycargomag.com AUGUST 2022

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J&B Grabs: serving the market since 1945 J&B Grijpers B.V. (J&B Grabs) is a holding company engaged primarily in the developing, manufacturing and reconditioning of hydraulic and wire rope grabs. The company started in 1945 in the manufacture and overhauling of re-handling grabs. The company’s 75 years of expertise means that it is able to supply a perfectly balanced product for its customers’ bulk handling operations.

J&B Grabs use 3-D solid modelling and FEA analysis is the design of its grabs. This means that customer-specific requirements can be implemented in the design and production process.

The company has a wide range of standard type grabs, which are readily available.

J&B Grabs are used by many brands and types of available cranes, including: E-Crane, Sennebogen, Caterpillar, Hitachi, Liebherr, Volvo, Fuchs and more.

Due to the many brands and types of cranes using different connecting systems, J&B Grabs has developed a number of quick-change connectors.

Mechanical and hydraulic systems make it possible to swap between grabs in just ten minutes.

J&B Grabs deliver parts and grabs internationally. The company is located in Utrecht in the Netherlands.

HYDRAULIC GRABS FROM J&B J&B’s hydraulic grab is available as: v rehandling grab (clamshell); v closed rehandling grab; v dredging grab; v horizontal profiling clamshell; v log grapple; v woodchips; and

v bale grab.

HYDRAULIC CLAMSHELL The Type LH for sand and gravel is available in five body sizes, with buckets from 1,000 litres and up. It is suitable for sand, gravel, coal etc. The grab’s capacity is decided according to the crane size and material to be handled.

Options for this grab are : v crane connector;

ENGINEERING & EQUIPMENT

v v v v v v

height compensation; hydraulic rotator; cylinders with cushioning; central greasing; dismountable clay removers; and exchangeable cutting edges.

The Type LHS, for sand and gravel (low built), is fitted with cylinders mounted on the edge of the buckets. It is ideal for higher closing forces and is low built. It is available up to 7m³ for sand.

The Type LHS-4 is available up to 30m³ for coal. It is suitable for cranes with lifting capacities of over 15 tonnes and up to a massive 45 tonnes. It is used to handle materials including cereals, coal, limestone, sand, bauxite etc.

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CLOSED REHANDLING GRAB The Type LHG rehandling grab is ideal for dusty materials such as cereals, fertilizers, phosphates and biomass. It is available in sizes ranging from 1,500 litres up to 15m³.

The grab’s capacity is decided according to the crane size and material to be handled.

Options include: v rubber sealing in the cutting edges; and v overlapping lower cutting edges.

The Type LHGS-4, for larger sizes, is a closed rehandling clamshell. It has four cylinders and is used with the larger cranes with a lifting capacity of up to 45 tonnes in grab operation. It is available in sizes ranging from 12m3 to 45m3.

DREDGING AND DIGGING CLAMSHELL The Type LHSz180-4 dredging and digging clamshell: v has large closing forces; v is fitted with floating pins for the best sealing; v has an option for dismountable teeth; v offers high penetration force; and v has a large volume.

HORIZONTAL PROFILING GRAB The Type LHM for environmental works hydraulic profiling grab is designed to remove polluted soil from the river bed.

The grab will dig the first piece of the curve and will then close horizontally.

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HYDRAULIC BALE GRAB The hydraulic bale grab/clamp is used to handle material packed in bales such as garbage.

HYDRAULIC CACTUS GRAB/ORANGE PEEL GRAB

LOG GRAPPLE The Type PLH125 short log grapple is for short logs, and is fitted with a chain.

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HYDRAULIC CACTUS GRAB FOR SCRAP The Type JHT hydraulic cactus (orange peel) grab for scrap has five tines, and is available from capacities starting at 600 litres.

The JHT-4 model has four tines for scrap handling, and is also available from a 600-litre capacity. It is extremely suitable for long pieces.

HYDRAULIC CLAMSHELL FOR WOODCHIPS The Type LHL clamshell for rehandling of wood-fibred woodchips is fitted with special teeth for good penetration, without damaging the ship. Because of its large spread, the grab has a good filling rate.

J&B’s hydraulic cactus grab is suitable for various applications: v scrap handling; v garbage/refuse; v rock; and v woodchips.

The capacity of the grab is determined by the material density and condition and the capacity of the material handler/ excavator.

HYDRAULIC CACTUS GRAB FOR ROCK The Type JHS five-tine cactus grab for rock is available for capacities starting at 600 litres. The shape of the tine depends on the rock size.

Options available include: v removable teeth; v manganese reinforcement; and v rotator.

The Type TH four-tine rock grapple starts at a one-tonne capacity, and is ideal for large rocks.

The Hand special grab for rock placement is used for fast and accurate rock/armour placement. It is available up to capacities of eight tonnes.

Mack Manufacturing is a global manufacturer of industrial material handling attachments, specializing in heavy-duty hydraulic grapples and buckets for overhead cranes and mobile equipment.

Established in 1942. Mack continues to operate as a family-owned business committed to the development of highlyskilled welders, fabricators and support staff.

Mack’s head office facility in Theodore, Alabama, is fully equipped to complete every step of attachment manufacturing and remanufacturing tasks under one roof, from engineering to precision machining to final finish.

The company is strongly focused on: longer life; increased productivity; and reduced operating costs for its customers — and Mack knows that all these can only be achieved through quality. This approach is behind all the company’s equipment.

Now in its fourth generation as a family business, Mack Manufacturing is still rooted in traditional values of customer service where ‘people’ make all the difference.

Services offered by the company include: engineering; fabrication; repair/ remanufacturing; parts; new equipment;

used equipment; and rentals.

BUCKETS Mack completes every step from drawings to finishing under one roof to ensure that it builds every custom clamshell bucket to one consistent standard for every customer.

Available models include: single line buckets; two- and three-line buckets; fourline buckets; hydraulic buckets; and dieselpowered buckets.

GRAPPLES Mack’s crane grapples are custom designed to suit the customer’s needs. Mack is the home of the first five-tine pulpwood crane grapple and continues to bring the best new ideas for customers to life.

Available models include: log grapples; scrap grapples; waste grapples; rock grapples; diesel-powered grapples; pulper grapples; car grapples; magnet grapples; log, pipe and pole forks; and dam site grapples.

ENGINEERING & EQUIPMENT

Crane grapples & clamshell buckets from Mack Manufacturing

ENGINEERING & EQUIPMENT

MRS Greifer GmbH: precision is the watchword

AUGUST 2022

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The MRS Greifer- und Maschinenbau Helmstadt GmbH was established 1977 out of the former crane manufacturer RIDINGER Mannheim.

The company was founded by former employees. MRS Greifer GmbH specializes in the production of grabs of every type,

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and is located about 100km south of Frankfurt.

GRAB RANGE MRS Greifer GmbH produces all kinds of grabs, with volumes ranging from 0.1m3 up to 30m3, and up to 20 tonnes of weight, for

the handling of bulk cargo. The company’s grabs can be connected to a crane or an excavator.

Dependent on the kind of drive, the following types of grabs are available: v Rope grab — connection: crane with suspension and closing rope; drive: mechanically through the closing ropes v Motor grab — connection: crane with suspension rope; drive: electrohydraulic through electrical lead from the crane. v Hydraulic grab — connection: excavator with frictional connection (e.g. quick-release attachment); drive: hydraulic drive through hydraulic supply from the crane.

DESIGNS MRS Greifer GmbH’s product portfolio, includes grabs in different designs to ensure a perfect handling of the various types of material. These include: v clamshell grab; v orange-peel grab; v dredging grab; v round log grab; and v others — special grabs for excavators or cranes with specific demands.

GRAB ASSEMBLY PROCESS MRS Greifer GmbH believes in the importance of high quality at every stage of grab production. When the customer has submitted his order, work begins in the technical department.

Here, drawings and designs of the grab are developed. Using modern CAD equipment, experienced technicians create three-dimensional projections of individual grab components, which are then assembled. A CNC- and AFC-controlled bandsaw automatically and economically cuts to size axles, bolts, bushes and various other components.

Universal lathes on programmable cycles are used in a variety of ways — for example, for large-scale production runs, or the conventional turning of one-offs.

Whatever the job, precision is the watchword.

The horizontal drilling and milling machines are equipped with the finest tools for the precise axial and radial working of

all drillings and fittings of the various bearing points, with big or small grab components. All forms of hollowing, insertions, slots and reductions or sealing systems can be produced.

Modern CNC-controlled flamethrowers cut to size steel sheeting of various thicknesses and qualities.

The particular component forms of all sections are first defined on computer in the technical department; they are then allocated to the appropriate cutting machine.

The precision-cut components are cleaned, and the welding scene is prepared. All are put together according to the design, under the supervision of a specialized welder.

Highly qualified technical staff is the guarantee of top quality manufacturing.

MRS Greifer GmbH uses various assembly procedures and hydraulic components — these include high-pressure axle pumps and the control blocks from famous and reliable German Quality producers.

After completing assembly, the employees of MRS Greifer GmbH carry out the initial function

check. For example the pressure and tightness of motorized grabs is tested.

The spare parts store is highly organized, with a wide-ranging assortment of hydraulic parts. This ensures immediate availability when they are required.

After assembly grabs are transported to the paint shop. First the anti-corrosion primer is applied, then the paint. Wherever possible, MRS Greifer GmbH respects customer with wishes regarding the paint choice. This even includes the thickness of the primer, and the final coat.

When a grab is ready for delivery, a final check is carried out.

ENGINEERING & EQUIPMENT

SERVICES MRS Greifer GmbH does more than just sell the grab to a customer: it also offers on-site-service, spare parts, repair, education/training, and transport.

ENGINEERING & EQUIPMENT

Verstegen Grijpers: a grab for any purpose Verstegen is a respected manufacturer of rope operated mechanical grabs for the dry bulk industry. Stevedoring companies, port authorities as well as steel works and power plants use the company’s grabs to handle all kinds of bulk materials. More than 10,000 Verstegen grabs are in operation in more than 100 countries worldwide.

DEDICATION TO GRABS Verstegen is specializes in designing and building grabs.

Its employees work continuously to develop and build the most efficient and cost-effective grabs.

Besides the standardized grab product range, Verstegen also develops unique solutions for specific situations and customer needs.

VERSTEGEN’S PHILOSOPHY For fast and efficient unloading, a grab is one of the most important tools. In order to get high unloading rates, the grab must be extremely reliable with a high productive capacity. Furthermore each grab should be custom built for the material it has to handle and the unloading situation in which it has to operate.

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HIGH CAPACITIES AND LOW DEAD WEIGHTS

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In order to obtain the highest productive capacity, a grab should have the highest possible volume without unnecessary dead weight. This is only possible with a good and well-proven design and the use of the best possible materials. To increase strength and minimize wear, each Verstegen grab is provided with shells completely made of high tensile wear resistant steel.

The friction in the articulation points is absolute minimal because of an excellent bearing system.

A DIFFERENT GRAB FOR EACH BULK MATERIAL

Each material has its own specific properties and a grab must be adjusted to these properties. A grab that will work perfectly in coal, can have great difficulties whilst handling iron ore. Through extensive experience and expertise, Verstegen has developed a number of grab models, especially designed for common bulk materials (coal, iron ore, agribulk, fertilizer, phosphates, ..).

Besides grabs for above materials, the company has special solutions available for other bulk materials with specific properties. The range of Verstegen grabs includes:

CLAMSHELL GRABS Optimally designed for common bulk materials. Clamshell grabs are used for normal free-flowing bulk materials.

Verstegen has developed a range of grabs that are optimally designed for common bulk materials. For other materials with specific properties, the company has developed a number of special solutions. v Optimized clamshell grabs: over the years Verstegen developed a wide of range of clamshell grabs. In order to offer the most suitable grabs, the company requires information about the materials to be handled, the crane on which the grabs has to operate and the customer’s unloading situation. v High productivity: the purpose of a grab is to handle large volumes of bulk material in a fast and efficient way. A good design, in combination with the use of high-tensile wear-resistant steel, as well as an excellent bearing system, make it possible to design and build very strong grabs with relatively low dead weights and high productive capacities. v Reliable and durable: in order to improve the strength and extend the lifetime, the shells of all Verstegen grabs are completely made of wearresistant steel with a hardness of 450HB. ORANGE PEEL GRABS For difficult to handle materials, like iron scrap, stones and rocks, or pig iron Verstegen orange peel grabs are an ideal solution. The specific shell model depends on the material which has to be handled.

v Scrap handling: most orange peel grabs are used for handling iron scrap.

But scrap comes in all kinds of forms and shapes. A grab suitable for shredded scrap will not automatically perform well in heavy melting scrap.

Therefore Verstegen has developed different types of grab model. Besides the number of shells, the shape of the shells and also the spaces between the shells can vary in order to optimize the grab for each specific application. v Radiation detection system: the grabs can be equipped with a radiation detection system (RadComm). The system scans on a continuous basis, so the material is scanned on the surface before the grab even picks up the load.

The remote console will alert the operator when radioactive material is detected. The controller is mounted inside the crane operator’s cab. v Pig iron or stones: for handling materials like pig iron and stones extra heavy orange peel grabs are required.

To ensure a good penetration and good filling, the grabs have high dead weight. The spaces between the shells are relatively small to minimize the risk of material loss. v Other materials: sometimes orange peel grabs can also be used for other materials, like biomass or handling large lumps of materials. Also for under water operations orange peel grabs can be used.

TRIMMING GRABS For heavy and coarse materials, Verstegen trimming grabs are the most efficient

WORLDWIDE NUMBER ONE

IN ROPE-OPERATED GRABS

Are you looking for a new grab?

Please contact us. At Verstegen we are fully specialised in rope-operated mechanical grabs. Our goal is to provide the optimal grab for your specific operation.

A new Verstegen grab leads to higher production rates and lower maintenance costs through extreme reliability and long lifetimes. Tell us how you want to improve your operation and together we will find the best solution.

Visit us at www.verstegen.net

Verstegen Grijpers B.V. The Netherlands WWW.VERSTEGEN.NET

ENGINEERING & EQUIPMENT www.drycargomag.com AUGUST 2022

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solution. Trimming grabs are in operation for handling coarse materials like stones, ferro-chrome, pig iron, DRI and HBI. v Wide opening and horizontal closing path: trimming grabs are special grabs with a very wide opening and large footprint which is extremely efficient during cleaning-up operations.

Because the shells have a ‘horizontal closing path’ the bulk material is ‘scraped together’, instead of taking a bite out of the material. This makes it possible to ensure a good filling of the grab without having to penetrate the material. A special application for trimming grabs is dredging operations.

The horizontal closing path makes it possible to work in layers and create an even surface. v Specific materials: because of the extreme large opening of the shells, trimming grabs have a very large ‘footprint’, which also offers advantages during cleaning up operations. Trimming grabs are normally used for materials like pig iron (pyramid shaped), furnace slag, HBI, stones and ore lumps and other coarse materials (up to ±300mm).

SINGLE-ROPE GRABS A special grab in the extensive range of Verstegen grabs, is the single-rope grab, especially designed for cranes with one single drum. v Ready for operation: single-rope grabs are normally used when port cranes are not available and shipboard cranes must be used. Most of these ship cranes are single drum cranes that cannot operate two- or four-rope grabs. In these cases, Verstegen singlerope grabs can be a good solution. The grabs can be connected to any crane.

The only thing the user has to do is to hook the grab on a crane with sufficient lift capacity and the grab is ready for operation. v Three opening systems: most of Verstegen’s single rope grabs are provided with a mechanical hook system to secure the closing of the grab. To open the grab, this mechanism must be uncoupled. Besides the completely mechanical grabs with a touch-and-go opening system, there is a manual opening system (by pulling a tagline) and a remote control opening system.

DREDGING GRABS Verstegen has a long history in building grabs for underwater operations. Different grab models are available for different operations. v Dredging and digging grabs: for underwater operations, Verstegen offers grabs for maintenance dredging (mainly silt and mud) and special grabs for digging operations (clay and hard ground layers). The grabs are available in two- and four-rope versions. v Smooth shells: the inner side of the shells are smooth without any abrupt transitions. This minimizes resistance during digging into the bottom and also makes it easier to unload sticky materials, like clay and mud. v Different types of cutting edges (shell lips): the grab’s lower lips can be delivered with contact lips without teeth. For hard layers and difficult-topenetrate materials, Verstegen recommends lips with teeth. There are bottom lips with removable or exchangeable teeth and lips with permanent teeth (cut from the bottom lips). Permanent teeth (cut into the bottom lips) are very suitable for extreme hard layers.

REMOTE CONTROL INDUSTRIA 4.0 Negrini has also introduced a new tool, Remote Control Industria 4.0, which

further enhances the company’s electro hydraulic grabs.

The tool is ideal for routine maintenance and to improve the efficiency of customers’ production processes.

FEATURES OF REMOTE CONTROL INDUSTRIA 4.0: v monitoring and control of processes in electro-hydraulic equipment; v real time scans and diagnostics; v system communication via Wi-Fi or data sim;

AUGUST 2022

good general operation; and v the piston rod is located in the upper part of the bucket where it is protected from the material and remains clean.

The hydraulic fluid passes through the rod and drives the jack, the flexible supply pipes are in the upper part of the bucket and remain within a safe area.

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Excavator buckets are designed to handle a wide range of materials. They operate by loading and unloading these cargoes. They are mounted on crawler excavators, selfpropelled wheeled excavators and trucks equipped with cranes. Excavator buckets are used widely in the agricultural and forestry sectors.

Grab manufacturer Negrini distinguishes between its equipment with the abbreviations LM (light material), GP (general purpose) and HD (heavy duty).

Negrini takes into account the weight to be handled and the work shifts to which the bucket mounted on the excavator will be subjected. Light buckets are used for handling brushwood and agricultural products, heavy buckets for loading and unloading waste or building materials.

The main strengths of the hydraulic clamshell grab at vertical piston are: v high opening speed provided by the structured hydraulic system; v option to use the bucket in longitudinal or transverse orientations; v almost complete absence of boxed areas limits the buoyancy effect; v option to use high pressure for enhanced speed and power; and v easy low-cost maintenance.

Other important areas include: v the shape of the new shell allows for the transit of materials without obstacles and helps continuous release when unloading, without sudden surges of material; v the bucket is smaller in height and can be raised higher than traditional buckets; v the bucket can be fitted with a free or motorized 360° rotator. The free rotator allows for natural adaptation of the bucket orientation. This rotator permits free rotation of ±50° with automatic return to the original position by exploiting the weight of the bucket.

Extensions can be fitted if required; v the shortness of the blade makes it possible to apply a highly concentrated force, giving the buckets high pressure per linear millimetre for maximum closing force — this allows for more effective filling and limits bucket lifting with a marked cutting effect on the terrain upon bucket closure, facilitating extraction; v when possible, Negrini carries out operating tests using electronic instruments fitted to the bucket in order to check the evolution of flow rates, pressures, back pressures, and

ENGINEERING & EQUIPMENT

Negrini’s remote control system improves customer experience

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ENGINEERING & EQUIPMENT v notifications via email, SMS or smartphone, tablet and PC; v preliminary production analysis; v routine maintenance alert; v failure prediction; and v immediate alarm in case of failure or malfunction.

AUGUST 2022

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THE SMART GRAB

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With Remote Control Industria 4.0 installed, the grab parameters automatically adapt to the type of material being handled without the need for human intervention, thus maximizing production and reducing costs.

In the presence of high-density materials such as mineral, the grab speed is reduced and the hydraulic pressure is increased, parameters otherwise not suited to lighter materials such as coal or cereals, where we see a change in speed and reduction in hydraulic pressure which would otherwise be unnecessarily high, causing energy wastage and wear.

The most important advantage offered by the Remote Control Industria 4.0 device installed on Negrini’s equipment concerns the processing of data, thus allowing preliminary production analysis and failure prediction. Notifications are sent via email and SMS and each time an event occurs,

either an incident, arrest or maintenance request is recorded.

Costly machine downtime is therefore avoided while maximizing production, reducing periods of non-activity and minimizing expenses normally incurred by corrective maintenance works.

The client and Negrini S.r.l. will have total control over the condition of the equipment via Wi-Fi or a data sim, using a smartphone, tablet or PC, and will receive all notifications sent by the system so as to always be informed on machine requests and events.

ENGINEERING & EQUIPMENT www.drycargomag.com AUGUST 2022

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Larger and more visible colour screen with new SupraTEQ TW78 waist transmitter from Tele Radio The SupraTEQ TW78 has been specially developed for the demanding mobile and industrial hydraulics sector.

A MUCH LARGER COLOUR SCREEN THAN THE WELL-KNOWN WAIST TRANSMITTERS, PLUS EVEN SMOOTHER IMAGES

Tele Radio’s new SupraTEQ TW78 waist transmitter meets the increasing demand for better interaction when operating large machines, installations, cranes and vehicles — including grabs. The SupraTEQ TW78 has been specially developed for the demanding mobile and industrial hydraulics sector, where screen size is often important for showing detailed feedback information.

When there are many functions to operate on complex machinery, it improves safety and ease of use if the required feedback is clearly visible on a colour screen. The SupraTEQ TW78 features a 4.3-inch colour screen that also offers smoother animations, with less flicker thanks to the dual buffering of the graphics memory. The user experiences the convenience of drawn images that do not show tearing and other artifacts or stutters.

The LED lighting in the handles of the transmitter is useful for use in dark locations. Not only is the transmitter clearly visible, the user also remains well in the picture. The front part also contains LED lighting that serves as a ‘flashlight function’.

The transmitter is PLe certified and therefore extremely suitable for work with a high safety risk, such as lifting and hoisting, especially moving heavy loads. The emergency stop function of the PLe/Cat3 level offers additional safety.

The SupraTEQ TW78 has been specially developed for the demanding mobile and industrial hydraulics sector

SUPPLEMENT TO THE RANGE OF WAIST TRANSMITTERS

The SupraTEQ TW78 is an addition to the

Tele Radio range of waist transmitters with a two-inch colour screen. The TW78 with a 4.3-inch screen is the superlative of this. Also, in terms of feedback functionalities, the transmitter leads the way with vibration technology for warning and alarm feedback.

The transmitter works on the worldwide used 2.4 GHz frequency, is equipped with duplex communication, a robust housing and complies with protection degree IP65.

The two replaceable and rechargeable batteries enable hot swapping. A wide selection of receivers is also available for the TW78, including wired/Harting connector, digital input and output, CAN/485, Modbus RTU, CAN Open/J1939.

SUPRATEQ IS THE NEW NAME FOR TELE RADIO’S MULTIFUNCTIONAL WAIST TRANSMITTER

In the field of secure wireless and radio remote controls, Tele Radio sees rapid developments that require a different approach.

On the one hand, the technology is becoming increasingly complex, on the other it offers many more

possibilities. This will be reflected in the new way in which the channels are presented from now on. No longer do users choose a channel by animal names such as Tiger or Puma.

With the new more technical names, which are linked to a new layout, Tele Radio wants to give a clearer indication of the shape, use, positioning or size of the transmitter.

With its new SupraTEQ transmitter, the word ‘Supra’ shows that we are dealing here with a larger and more specified transmitter. The name ending TEQ is a link to the ‘technique’ with which this transmitter is filled with. With TEQ Tele Radio also indicates that it is a waist transmitter. The letter ‘Q’ is a direct reference to Quality = quality. Tele Radio calls the SupraTEQ “the all-rounder within its range of waist transmitters”.

The names of the remaining Tele Radio waist transmitters will be renamed PrimaTEQ (previously known as Tiger T12) and VersaTEQ (previously known as Puma T26) depending on specifications and size.

Tele Radio provides universal, wireless remote controls and custom solutions for industrial applications.

Its products contribute to a more comfortable and safer workplace. Many of the company’s products are independently certified with a SIL3, PLd and PLe safety level on the stop function. Robust and reliable systems with advanced software for easy installation, a high degree of flexibility and adjustable DCi operating parameters.

REGIONAL REPORT

Highways and byways why the Great Lakes & St. Lawrence Seaway System remain essential for bulk trade

AUGUST 2022

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In Port Colborne, 60 x 40’ containers of local soybeans were loaded onto the Hudsongracht a Spliethoff vessel at Ramey’s Bend terminal for export to Europe.

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Louise Dodds-Ely The Great Lakes–St. Lawrence Seaway System is a deep draught waterway extending 3,700km (2,340 miles) from the Atlantic Ocean to the head of the Great Lakes, in the heart of North America. The St. Lawrence Seaway portion of the System extends from Montreal to mid-Lake Erie.

Ranked as one of the outstanding engineering feats of the twentieth century, the St. Lawrence Seaway includes 13 Canadian and two US locks.

The Great Lakes and St. Lawrence River have been major North American trade arteries since long before the US or

Canada achieved nationhood. Today, this integrated navigation system serves miners, farmers, factory workers and commercial interests from the western prairies to the eastern seaboard.

With economic output estimated at $6 trillion, the provinces and states bordering the Great Lakes–St. Lawrence Seaway System account for 30% of combined Canadian and US economic activity and employment.

The region would rank as the third largest economy in the world if it were a country. Positioned at the core of this

economic powerhouse, the Great Lakes–St. Lawrence Seaway System serves as a vital supply chain.

The Great Lakes/St. Lawrence Seaway was built as a binational partnership between the US and Canada, and continues to operate as such. Administration of the system is shared by two entities, the Great Lakes St. Lawrence Seaway Development Corporation (GLS) in the US, a federal agency within the US Department of Transportation, and The St. Lawrence Seaway Management Corporation in Canada, a not-for-profit corporation

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REGIONAL REPORT www.drycargomag.com AUGUST 2022

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(ownership of the Canadian portion of the Seaway remains with the Canadian federal government.)

QUICK FACTS v Cargo shipments on the Great Lakes-

Seaway system generate $45 billion of economic activity and 238,000 jobs in Canada and the US. v The binational St. Lawrence Seaway serves as the linchpin within the broader waterway, connecting the lower

St. Lawrence River to the Great Lakes.

Beginning in Montreal and extending to points west, the Seaway’s 15 locks (13 Canadian and 2 U.S.) enable ships to climb a total of 168 metres from sea level up to Lake Erie.

Rapidly closing volumes gap, and significant areas of strength: evidence of a resilient and thriving Seaway Through June, the St Lawrence Seaway tonnage is down 8% year over year, due in large part to drought conditions which impacted the North American wheat crop in 2021. This wheat deficit has led to a reduction in vessel transits through the Seaway of 4%. However, even though tonnage is down right now, the gap is closing considerably in comparison to April when tonnage was down 18% following the start of the season.

Despite the reduction in available US and Canadian wheat shipments out of the Great Lakes this season, there are significant areas of strength within the system’s maritime supply chain to highlight.

While the number of self-unloading Lakers transiting the Seaway to take wheat to the Lower St Lawrence River ports for transloading into larger vessels is down, the ocean vessel (Saltie) movements inbound through the Seaway are up over the 2021 season year to date. Based on the Seaway cargo flows so far this season, this increased ‘Saltie’ activity is focused on accessing the available supplies of various bulk products such as coke from the US and Canada, potash from Thunder Bay, and other agricultural products such as corn and soybeans originating from Ontario and the US Midwest..

Overall US grain export movements are up 37% this year with the volumes of soybeans and corn compensating for the drought impacted wheat crop. Movements of note include the Port of Oswego’s new agricultural export facility shipping its first export vessel of soybeans through the Seaway with at least three more scheduled this season. Canada has also seen significant growth in corn and soybean exports this year in response to increased global demand. At the Port of Hamilton, shipments of grain are up 28% compared to last year and the Port of Windsor grain volumes continue to rise with soya and corn exports in high demand. Overall, countries receiving grain exports include: Norway; Ireland; Gibraltar; Morocco; Scotland; Italy; Northern Ireland; the Netherlands; Portugal; Puerto Rico; Tunisia; Germany; Japan; and Spain.

Supporting these grain exports are infrastructure investments made throughout the system. In addition to Oswego’s new $17 million agricultural export facility, the Port of Milwaukee is currently constructing a $35 million dollar export facility scheduled to come online before the 2023 Seaway season. And The Port of Duluth will see a recently purchased grain elevator brought back in service this autumn. These three facilities join the expanded HOPA export facility in Oshawa which came into service in the autumn of 2019 and together highlight an increased Great Lakes grain storage and loading capacity for export movements.

Another export cargo increase being seen this season out of the Great Lakes St Lawrence Seaway system is for coke. High

global demand out of the Lakes for coke has led to a 55% increase in overall tonnage through the Seaway so far in 2022.

To date, 11 ports have exported coke including Duluth/Superior, Chicago, Indiana Harbor, Burns Harbor, Sandusky, Sault Ste Marie, Detroit, Hamilton, Thunder Bay, and Toledo. Destinations for this coke include: Brazil; Mexico; UK; Norway; Belgium; Ireland; Northern Ireland; Portugal; France; and Morocco.

High demand for potash has led to the Port of Thunder Bay seeing its export volumes increase significantly this season, up by about 282% compared to last year, with demand from countries including Brazil, Norway, Netherlands, United States, Columbia, Morocco, Italy, and Belgium.

The wind energy sector continues to

REGIONAL REPORT

utilize the Great Lakes maritime supply chain as evidenced by the Seaway’s 200% increase in wind energy movements this season. To date, over two dozen vessels have transited into the system so far with the Ports of Ogdensburg, Oswego, Buffalo, and Erie being the busiest in support of multiple renewable energy projects being constructed in upstate New York. Other ports receiving wind energy cargo include Thunder Bay, Bay City, Duluth, and Chicago.

Points of origin for this equipment include: Spain; India; South Korea; Malaysia; Argentina; and Turkey. Also of note, there have been short sea shipping moves of wind towers through the Welland Canal section of the Seaway from the Port of Monroe, Michigan to Oswego, New York in support of projects.

In response to the steady utilization of the Seaway maritime supply chain for wind projects, terminals in Duluth, Bay City, Oswego, and Burns Harbor have expanded their laydown areas in order to handle the ever increasing sizes of wind energy project cargo.

Container movements this year through the system consist primarily of the volumes carried on the Cleveland-Europe

Express service between Antwerp and Cleveland operated by Spliethoff.

This monthly service started in 2014.

Since the summer of 2021, the CEE Service has utilized an 897 TEU dedicated container vessel. Inbound transits this season have been consistently full with the export volumes back to Antwerp

increasing since the start of the season. In Port Colborne, 60 x 40’ containers of local soybeans were loaded onto the Hudsongracht a Spliethoff vessel at Ramey’s Bend terminal for export to Europe. The shipper traditionally used a combination of trucking and rail to move its containers to the East Coast for

HARNESS THE GLOBAL POWER OF A GREAT LAKES PORT. Regional, national and international logisticians count on Port Milwaukee for a turnkey approach to solve their transportation and supply chain needs. Strategically located in the industrial center of the U.S., Port Milwaukee provides premier access to domestic and world markets.

VISIT PORTMILWAUKEE.COM PORT@MILWAUKEE.GOV

REGIONAL REPORT AUGUST 2022

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Thunder Bay grain elevator.

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furtherance to Europe. The shipper was looking for a competitive alternative due to congestion at East Coast ports. This direct routing has proven to be very successful. The Port of Duluth is in its first full season as an active container port and already has exported 200 containers of kidney beans by vessel to Europe (see p99 for further details). These 200 containers will be filled with import products in Europe and cycle back to Duluth.

Within the Great Lakes, container movements inbound are limited to the ports of Cleveland and Duluth as those are the only two ports to have achieved U.S. Customs & Border Protection (CBP) clearing compliance for containerized cargo. That will change by the 2024 season as the Port of Monroe, Michigan is receiving $5 million in 2023 from the State of Michigan to construct a CBP-compliant container handling terminal in 2023 which

can offer maritime import and export service to the Michigan, Northwest Ohio, and Northeast Indiana markets.

The long-standing staple cargo inbound each Seaway shipping season has been steel. This season is no different as it remains a key mover this season. Overall steel tonnage transiting into the Great Lakes in support of the manufacturing sector has been steady this season, currently 1% above the 2021 volume. At the Port of Windsor, the Essex Terminal Railway Company and its sister company Morterm, which operates the port’s only cargo and breakbulk facility, announced early July an $11 million infrastructure project, including $5 million from NTCF, to build a new warehouse to increase capacity and improve efficiency of moving highquality automotive-grade steel from ship to rail.

Overall, the St Lawrence Seaway system

continues to display its reliability and resiliency as a maritime supply chain.

Despite the shortfall in wheat availability, export grain movements of other products have increased significantly in response to changing supply and demand patterns overseas. Likewise, coke and potash exports have been available to meet these unforeseen changes in global demand.

Traditionally strong Seaway cargo lanes such as steel and wind energy have maintained their performance this season while container movements offering direct service by water into the heart of North America continue to increase.

With a rebounding wheat harvest, new agricultural export facilities ‘taking root’, and a shift to the eastern corridor from the West Coast corridor due to congestion, the Great Lakes St Lawrence Seaway system should only strengthen by year’s end.

Port of Cleveland volumes surge in 2021: bulk up by a staggering 71% The Port of Cleveland is one of the largest ports on the Great Lakes. Over 20,000 jobs and $3.5 billion in annual economic activity are tied to the roughly 13 million tonnes of cargo that move through Cleveland Harbor each year. The Port of Cleveland is the only local government agency whose sole mission is to spur job creation and economic vitality in Cuyahoga County. The port is an economic engine for the

community, a key to Northeast Ohio’s global competitiveness, and a crucial partner in building Cuyahoga County’s future.

BULK CARGO As a key bulk cargo port on the Great Lakes, the Port of Cleveland has all the facilities required for the storage and transshipment of dry bulk cargo. The port can handle dry bulk cargo including, but not limited to: v iron ore; v limestone; v cement; v salt.

SERVICES Servicing the 80-acre, Cleveland General Cargo Facility, the port features: v full Seaway depth of 27’ maintained at all times; v four shore-side cranes; v two new high-efficient mobile cranes with 80-tonne capacity each; v forklifts; v Mafi transport units; v two class 1 railroads; v substantial lay-down areas; v 320,000ft2 of indoor, warehouse capacity; and v security, surveillance & monitoring: 24/7/365.

Cargo of Every Flavor.

INNOVATION, PLANNING AND EXECUTION BEHIND PORT OF CLEVELAND’S HUGE INCREASE IN VOLUMES The Port of Cleveland saw a 69% increase in tonnage across its docks in 2021 compared to 2020. This surge was attributed to significant increases in non-containerized goods, containerized cargo, and iron ore shipments to the Cleveland-Cliffs Cleveland Works steel mill.

Early in 2021, the port completed two major infrastructure projects that paved the way for the increased cargo volumes.

First, the port expanded its iron ore tunnel at the ClevelandBulk Terminal, providing additional capacity for the movement of iron ore. Additionally, the port opened a new modernized and expanded main gate at its general cargo facility, which allows for the more efficient movement of trucks, decreases wait times for drivers, and more efficiently moves cargo on/off port property.

The port also reactivated the Foreign Trade Zone space at the general cargo terminal, leading to additional volumes and cost savings for numerous port clients.

Cargo owners sought new solutions with the Port of

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©2019 Toledo-Lucas County Port Authority

REGIONAL REPORT Cleveland in 2021 due to continuing issues in the global supply chain. Container volume doubled compared to 2020 as shippers changed their routings from large coastal ports to alternative ports such as Cleveland.

highest in last ten years (only slightly behind 2015); v containers handled doubled compared to 2020.

CLEVELAND BULK TERMINAL VOLUME: INCLUDES

GENERAL CARGO TERMINAL VOLUME: INCLUDES STEEL , CONTAINERS, PROJECT CARGO, SALT, AND CEMENT

v 57% increase over 2020 numbers v 649,324 metric tonnes — second-

IRON ORE AND LIMESTONE THROUGHPUT

v 71% increase over 2020 numbers; v 6,943,139 metric tonnes.

“Our cargo volumes bounced back in a big way in 2021 across the board, which

indicates business is up at regional firms that depend on our port,” said William Friedman, President, and CEO, Port of Cleveland. “We are particularly pleased to see containerized cargo grow significantly because we’ve worked for years to position Cleveland as an alternative to congested coastal ports. Our momentum continues as we continue expanding Port capacity and services to meet the shipping needs of Northeast Ohio and beyond.”

AUGUST 2022

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Maiden voyage under way for first US-flagged Great Lakes bulk carrier in nearly 40 years

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Almost three years after the first cut of steel for the first Great Lakes freighter in nearly 40 years, the 639-foot Mark W. Barker embarked on her maiden voyage on 27 July this year from Fincantieri Bay Shipbuilding.

“This is a monumental day for our company and the US flag fleet as our muchanticipated freighter departs on her first voyage in what will be a long life of service on the Great Lakes,” says Mark W. Barker, President of The Interlake Steamship Company and namesake of the vessel — the company’s first new build since 1981.

“The construction of this vessel, which was made from steel manufactured in Indiana, from iron ore delivered by vessel from Minnesota, reinforces our long-term commitment to shipping and delivering

‘MARK W. BARKER’ STATISTICS Carrying capacity: 26,000 gross tonnes Overall length: 639.0ft Year built: 2022 Hull depth: 45ft Beam: 78ft Engine horsepower: 8,000

essential cargoes for our customers throughout the region.”

The Mark W. Barker departed the Sturgeon Bay, Wisconsin shipyard at 10:36 Eastern time for her 110-mile journey to Port Inland, Michigan where her crew of 21 professional mariners loaded stone to

deliver to Muskegon, Michigan. Once delivered, that stone cargo will go into ready-mix concrete production.

“This new vessel not only brings with it additional cargo carrying capacity and capabilities, it is the most versatile in our fleet and strategically sized to navigate into nearly any port on the Great Lakes,” says Brendan P. O’Connor, Vice President of Marketing and Marine Traffic. “The Mark W. Barker will give us unmatched ability for cargo operations and to carry unique project cargoes because of both her square-shaped cargo hold and larger hatch openings. She truly was designed to be a vessel for the future.”

Under construction since August 2019, the Mark W. Barker was built by hundreds of

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dedicated workers at the Sturgeon Bay, Wisconsin, shipyard.

“We couldn’t be prouder to add this skillfully constructed vessel to our growing Interlake fleet,” says Barker, who was at the shipyard at the end of July to personally wish the best to the ship’s crew fitting out the new vessel. “It has been genuinely inspiring to see the dedication and workmanship from all of those involved in this multi-year project, from the design, construction, final outfitting and successful sea trials. We are thrilled to add our newest US-crewed, US-built and US-owned vessel to the Great Lakes fleet.”

ABOUT THE ‘MARK W. BARKER’ The first Great Lakes bulk carrier to be built on the Great Lakes in more than 35 years, Mark W. Barker is also the first new build for Interlake since 1981.

This highly versatile River-class vessel highlights Interlake’s long-term commitment to corporate social responsibility and sustainability.

All aspects of the vessel have been designed to ensure that it will have a low environmental impact to the Great Lakes and to those who work aboard.

The 639-foot ship will carry all types of cargo throughout the freshwater Lakes and River systems but was designed to navigate

the tight bends of the Cuyahoga River in Cleveland. The ship’s forward-looking design features include lowered emissions, high-efficiency propulsion and manoeuvrability, and enhanced cargo solutions to meet customer demands.

The Mark W. Barker is the first ship on the Great Lakes with engines that meet EPA Tier 4 emissions standards.

She is powered by twin EMD main engines generating 8,000 total horsepower that turn a single four-blade, controllablepitch propeller through a Lufkin twin-input,

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single-output gearbox. She has 1,000hp Kongsberg bow and stern thrusters.

Her hull has been optimized for efficiency and all systems have been designed to ensure low energy consumption. A Kongsberg high-lift rudder optimizes the wake through the propeller.

The newest self-unloading bulk carrier has a unique cargo hold arrangement and cargo hatch covers designed for maximum cubic space and the ability to handle difficult cargoes.

Five large hydraulically controlled

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stackable MacGregor hatches, more commonly found on ocean-going vessels, offer enhanced flexibility with project cargoes and expedite loading operations.

Unlike most Great Lakes freighters, the Mark W. Barker has a square-shaped, flatbottomed cargo hold instead of a traditional V-shaped angled bottom that

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funnels bulk cargo onto conveyer belts for offloading. The vessel has bulk-flow gates, and a variable speed drive for its unloading conveyor.

The combination of larger hatch openings and additional cargo hold space was designed with future cargoes in mind to include non-free-flowing bulk material

such as wind-turbine blades.

In addition, the unloading boom is located on the forward end of the ship, offering flexibility for cargo operations in congested ports. Many Great Lakes customers find the forward boom more advantageous to allow placement of in preferred areas for access at their docks.

DULUTH SEAWAY PORT AUTHORITY RANKS FAVOURABLY IN GREEN MARINE ENVIRONMENTAL RATING

DULUTH CARGO CONNECT LOADS SEASON’S FIRST MARITIME CONTAINERS FOR EXPORT

activity, loading the first containerized cargoes of 2022 for export aboard the Spliethoff-chartered vessel Nunalik.

The shipment consisted of approximately 4,500 tonnes of super-sacked kidney beans bound for Europe from the Chippewa Valley Bean Company in Menomonie, Wisconsin. Duluth Cargo Connect loaded the beans onto the Nunalik in 200 20-foot containers, which then sailed from the Port of Duluth-Superior, North America’s furthest inland seaport, across the Great Lakes and through the St. Lawrence Seaway to their European destinations.

Co-ordinating the shipment required collaboration with multiple players, including the Chippewa Valley Bean Company, Jeff Foster Trucking, Nexyst 360 (which assembles sustainable supply chain solutions), and the Spliethoff Group.

“We operate an excellent multimodal transport facility at the Clure Terminal, but to develop this maritime container business, it takes more than that,” said Jonathan Lamb, Duluth Cargo Connect president. “It takes the steamship line operators, customers, freight forwarders, truckers and third-party logistics providers.

It takes everybody, all of them coming together to make a deal like this work, and we’re very appreciative of everyone who helped make it happen.

“It illustrates the kind of efficient, personalized service we can provide here in Duluth, and also how the Great Lakes-St. Lawrence Seaway System can be a valuable supply chain alternative for importers and exporters.”

Cindy Brown, Chippewa Valley Bean Company president, called the innovative

shipping arrangement “a saving grace” for her company, which is the nation’s leading exporter of kidney beans.

“It opens a new horizon for us to find containers and make an investment in our future by using the Port of Duluth — a port so close to us — with chartered vessels, to deliver product efficiently to our customers worldwide,” said Brown. “The sky’s the limit. We can find warehousing, we can have storage for our customers and now we can make sure that our product is there on time to meet the needs of retailers in Europe.”

Nexyst 360 provided a critical component of the groundbreaking deal, supplying its own specialized NexBox containers to accommodate the shipment.

A technology-embedded shipping container, the NexBox is carefully crafted to ensure quality, traceability, sustainability, market access and mobility for specialty grains.

“Containers are in short supply worldwide, so it’s a major advantage to have our own private boxes,” said Al Dutcher of Nexyst 360. “But what’s really notable is the NexBox technology and how it fits into our overall process for linking farmers, buyers, and consumers with quality, traceable product that isn’t overhandled and moves efficiently.”

The Port Authority praised the arrangement as a collaborative effort, and also a promising expansion for Head-ofthe-Lakes shipping.

“Greater cargo diversity and more multimodal shipping options make our port and our region more vibrant,” said Deb DeLuca, executive director of the Duluth Seaway Port Authority. “It’s a team effort to

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In October 2021, the Duluth Seaway Port Authority announced that it had gained approval to begin maritime containerhandling operations at the Clure Public Marine Terminal, adding waterborne container shipping capability to its existing land-based intermodal business. Duluth Cargo Connect, a working partnership between the Port Authority and its operating agent, recently initiated that new

Historic moment: kidney beans bound for Europe are loaded in containers into the Spliethoffchartered vessel Nunalik.

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The Duluth Seaway Port Authority and its terminal operations on Rice’s Point ranked among the nation’s top performers in the recently released Green Marine 2021 environmental performance report, posting a 3.8 score on Green Marine’s five-point scale. The overall average for port authority participants was 2.97.

The annual report rates port authority participants in seven categories: air emissions, community impacts, dry bulk handling and storage, environmental leadership, underwater noise, waste management, and a revised performance indicator for spill prevention and stormwater management. A record 50 North American port authorities participated in the 2021 evaluation process, with the Duluth Seaway Port Authority ranking No. 6 in the United States and No. 1 among US Great Lakes ports.

“Green Marine provides a tangible annual scoreboard for environmental stewardship, with performance criteria that become increasingly robust each year,” said Jeff Stollenwerk, Duluth Seaway Port Authority director of government and environmental affairs. “The process raises awareness of our work to minimize environmental impacts and it inspires us to continually improve our environmental stewardship.”

The voluntary Green Marine certification programme began in October 2007 and now includes more than 170 participating ship owners, port authorities, seaway corporations, terminal operators and shipyard managers.

Programme participants must adopt practices and technologies that continually reduce their environmental footprint on the land, air and sea. The Duluth Seaway Port Authority has participated since the programme’s inception.

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Progress continues apace at the Port of Duluth-Superior

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Deb DeLuca.

create these kinds of solutions for helping regional producers and manufacturers compete in the global marketplace, and we’re excited to see those efforts coming to fruition.”

HANSEN-MUELLER COMPANY PURCHASES DULUTH’S ELEVATOR A The Hansen-Mueller Company recently finalized acquisition of General Mills Elevator A in Duluth, Minnesota, completing a deal that will bring the grainhandling facility back into active service.

Owned previously by General Mills and inactive since 2015, Elevator A becomes the second Hansen-Mueller-owned grain complex in the Twin Ports, joining the Daisy Elevator and Elevator M complex in Superior, Wisconsin.

Elevator A anchors the northern end of Rice’s Point in Duluth. It stands 185 feet above the harbour, with a 3.5 million-

bushel storage capacity. Consolidated Elevator Company built the structure with ceramic tile, brick and concrete in 1908, replacing the original wooden elevator constructed on the site in 1894. General Mills purchased the elevator from Consolidated in 1943, modernizing it in the 1970s and operating it until 2015. The site includes a 1,900-foot dock, with a slip depth of 28 feet, and on-dock rail service from BNSF Railway.

Nebraska-based Hansen-Mueller plans to bring the facility back into operation in time for the 2022 harvest season. The facility will import and export primarily small grains grown in the United States and Canada to domestic and foreign destinations.

“The facility fits our portfolio very well and will complement our import and export programme, as well as our interior grain assets and processing plants,” said Paul Johnson, Hansen-Mueller vice president and chief operating officer. “We are excited to grow our business in the Port of Duluth-Superior, and bring new business onto the St. Lawrence Seaway.”

The reactivation of Duluth’s Elevator A is expected to add at least eight new jobs on the working waterfront, in addition to generating added revenues and increasing grain tonnage through the Port of DuluthSuperior.

“Elevator A is a valuable asset in our port, with its grain-handling capacity, excellent road and rail connections, plus a long, solid, Seaway-depth dock for ships,

and we’re excited for its potential,” said Kate Ferguson, Duluth Seaway Port Authority director of trade and business development. “We’ve been looking for the right match to put that asset back into active use, and Hansen-Mueller proved to be that match. It was a process working together with Hansen-Mueller, General Mills and BNSF, which owns the land on which the elevator is built, and we’re appreciative of everyone’s efforts that brought us to this exciting announcement for Hansen-Mueller, the Port of DuluthSuperior and the Duluth Seaway Port Authority.”

ABOUT THE HANSEN-MUELLER COMPANY Hansen-Mueller, a family-owned business, was founded in 1979. Hansen-Mueller owns or operates approximately 14 facilities nationwide, including three port locations, and three mills, in addition to its grain storage facilities. The company provides grain merchandising and logistics, commodity trading and feed processing products to customers across the Midwest and throughout the world.

ABOUT THE PORT OF DULUTH-SUPERIOR Approximately 800 vessels and 35 million short tonnes of cargo move through the Port of Duluth-Superior each year, making it the Great Lakes’ largest tonnage port and one of the nation’s top 20. The port supports nearly 8,000 jobs and contributes $1.4 billion in business revenue to the regional economy.

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Elevator A is now the second Hansen-Mueller-owned grain complex in the Twin Ports.

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REGIONAL REPORT

Great Lakes winter supply chain disruptions: more icebreakers needed

Lake Superior, March 2022. resulted in almost a 50% reduction of Coast Guard icebreakers from 20 in the late 1970s to the current 11. The U.S. and Canadian Coast Guard’s claim a team approach to icebreaking which includes the sharing of assets to accomplish the job.

While the team was playing, each coach was cutting the roster leaving too few players to win the game.

When government officials attempt to correct the problem, they face an uphill battle due to inaccurate accounting which allows both Coast Guards to claim success. For any vessel to be counted as having a delay due to ice, the U.S. Coast Guard requires two vessels to be stuck for more than 24hours and stuck in one of four specific small connecting waterways (not the open lake, bays, or harbours). So, a vessel stuck in ice in eastern Lake Superior for a month would not count and neither would two vessels stuck in one of the four defined waterways for 23 hours.

The Great Lakes are a phenomenal resource and that includes being a globally significant marine transportation system.

There is room to grow international trade and cruise ship tourism, but the system must become more reliable and resilient during the winter months, which means more and newer Coast Guard icebreakers.

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95,000 square miles of navigable water. In addition, both Coast Guard’s Great Lakes icebreaking fleet are ageing well beyond their life expectancy with more than 60% of the vessels exceeding 40-years old.

Casualties occur more and more often cutting into the number of icebreakers available to assist.

This past year, the US domestic fleet of bulk carriers, who operate solely on the Great Lakes, lost more than 28 days of operations due to a lack of Coast Guard icebreakers. Yet, unlike the Suez Canal or Chesapeake Bay where vessel casualties created backups, no global attention nor even national attention was given to the vessels stranded in ice on Lake Superior.

One of the most important North American waterways was either impassable at times or devastatingly slow due to ice clogging the lakes and their connecting rivers.

The ice is annual event, not some anomaly that only occurs once every ten years. In fact, economic analysis of ice induced delays and waterway closures illustrated impacts of more than $2 billion and the loss of 10,000 jobs during the winters of 2014, 2015, and 2018.

How is this allowed to happen? Years of neglect to the Great Lakes region have

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With increased port congestion on the east and west coast, the Great Lakes Navigation System has been increasingly viewed as a relief valve for cargo moving into the heartland of the United States.

Companies transporting cargo from overseas plan months in advance to schedule delivery dates and depend on a reliable waterway system to remain efficient and safe.

The problem with Great Lakes Navigation System is a lack of reliability during the winter months. Ice forms on the lakes in December and typically lasts until middle or late April. The ice hampers efficient navigation and even stops vessels from moving in the absence of Coast Guard icebreaker assistance. Distances are vast between the Atlantic Ocean and the head of the lakes in Duluth, Minnesota stretching more than 2,300 miles through open lakes, bays, and confined connecting waterways.

Doing the math, it would seem appropriate to have several dozen icebreakers to manage the ice along the way, but in fact the U.S. and Canadian Coast Guard’s only maintain 11 for the entire system, only one of which is considered a heavy icebreaker. It simply is not enough for the severe winter conditions and vast

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REGIONAL REPORT

Phoenix rises with Doornekamp’s revitalization of Picton Terminals

Gearless vessels can discharge via port crane at 350tph.

Picton Terminals by Doornekamp provides logistics solutions and diverse port services which provide better, more efficient shipping throughout the St. Lawrence Seaway & Great Lakes region.

Picton Terminals offers stevedoring and unique storage options, innovative solutions and proximity to large markets.

HISTORY

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The Picton port was brought back to life when it was purchased by Doornekamp in 2015. The port can trace its roots back to 1948, when Bethlehem Steel Mills of New York discovered a magnetite ore body in Marmora, Ontario, in 1948 via a government aeromagnetic survey.

The mine site was developed between 1951 and 1953 which included the stripping of 120 feet of limestone overburden. The first shipment of iron ore

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pellets commenced in 1955.

The iron ore containing magnetite was crushed and ground, and magnetically separated to produce 65% iron concentrate and roasted at 2,400F. Each day, one ore train of 30–35 cars delivered iron ore pellets to the Picton port for loading into 25,000dwt ore ships destined for the Bethlehem Steel Company plant in Lackawanna NY via the Welland Canal.

Annual plant production was 520,000 metric tonnes.

The Marmora mine was expected to operate for over 50 years. However, in the late 1970s, iron production significantly decreased due to a sluggish economy, runaway inflation and a decrease in world demand for steel. In March 1978, the Marmora Mine closure was finalized resulting in the loss of over 300 jobs in the mine and at the Picton loading dock.

MODERN MARVEL When Doornekamp purchased the disused port, it immediately began redevelopment of the site to diversify port services and products — including the refurbishment of the existing 1950s shiploader.

Picton Terminals by Doornekamp now works with clients and utilizes creative engineering, economic strategies and sustainable products to accomplish challenging projects.

Products that can be handled at Picton Terminals by Doornekamp include: road salt; aggregates; farming products; heavy lift cargo; containers; dry bulk; new steel products; and recycled scrap steel

DOCKING AND SERVICES v dock depth: 31’ (9.44m); v dock length: 300m; v no general restrictions of any sort;

The shiploader pit has live storage space for 25,000 metric tonnes of pellets (or bulk product).

v tugs are not required by Picton Terminals; v 24/7 loading and unloading facilities; v shore crane 30 metric tonne lift capabilities, reach capabilities 28m; v top loading/unloading gearless vessels via clam — discharge upon request; v conveyor loading system 2,000tph (metric tonnes per hour); v MARSEC level 1 site; v material/product conveyor loading 2,000tph various sizes 6” minus and

smaller; v covered/dry stockpile, numerous volume options — long-term storage options; v gearless vessel discharging via port crane 300tph; v crushing/processing of aggregate materials on site; v custom packaged options available; v truck hauling of all materials; and v crane loading and unloading.

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The original 1950s shiploader was restored and modernized, and is now operating efficiently at Picton Terminals.

RECENT DEVELOPMENTS Picton Terminals by Doornekamp continue to attract customers to its modernized facilities.

One notable delivery was the arrival of 28,000 metric tonnes of bulk sugar, which the terminals received and then shipped out in March this year, before the Seaway opened. Picton Terminals loaded its barges and a vessel with sugar using the updated and restored 1950s shiploader.

Steel beams are becoming more regular

Better shipping in Eastern Ontario...and Beyond SERVICES

n Material/Product conveyor loading 1,000 tonnes/hr n Covered/dry stockpile, numerous volume options n Gearless vessel discharging via Port crane 300 MT/hr n Crushing/processing of aggregate materials on site n Custom packaged options available n Truck hauling of all materials n Crane loading and unloading

613-471-1112 | 24 White Chapel Rd, Picton, ON | www.pictonterminals.ca

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The Amy Lynn D was the rear tug in the delivery of a bridge to Toronto.

in their shipments — to date, there have been three to four shipments every year, but this number is expected to increase to five or more in 2022.

On Canada Day on 1 July, Picton Terminals also assisted with project cargo, using its Amy Lynn D tug, which served as the rear tug in the delivery of a bridge to Toronto (also pictured).

There is also hard work under way to bring containers to Picton Terminals — shown in the picture are containers loaded aboard Doornekamp’s vessel, Peyton Lynn C, which is currently chartered by Spliethoff.

In 2022, a total of 35,000 metric tonnes of aggregates were sent out from Picton Terminals, and 10,000 metric tonnes of dredge were returned.

Work is also under way on several projects (breakwall construction, shoreline restoration etc) for the Toronto Region Conservation Authority.

Also in July this year, Picton Terminals by Doornekamp was delighted to host Theodore Too tugboat for its first Doornekamp Company Meeting since November 2019. Theodore Too is a former television star, a champion for the marine industry, and an ambassador of Swim Drink Fish — an initiative

Containers loaded aboard Doornekamp’s vessel, Peyton Lynn C.

Theodore Too delighted families at the Doornekamp Company Meeting on 10 July.

that promotes ‘swimmable, drinkable, fishable water for everyone’. Theodore connects people to water so that they will learn to love it as much as he does.

Doornekamp Company Meetings are a family affair and the 40 kids and grandkids squealed with joy during their tours of Theodore Too.

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DOORNEKAMP VALUES

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Doornekamp is known for its dedication to core values: commitment to customers, team and family; quality of products and services; resourcefulness in achieving its mission.

REGIONAL REPORT

Bécancour’s strengths enhanced by strategic geographical position The Société du parc industriel et portuaire de Bécancour — SPIPB — is known for its strategic location on the south shore of the St. Lawrence River in Bécancour, midway between Québec and Montréal.

Aiming to be a world-renowned leader in the accommodation of investments and the development of responsible industrial and port activities, the SPIPB promotes the economic development of the province of Quebec by developing and operating an auto-financed industrial park and port facilities.

The SPIPB is mandated by the Quebec government and the Ministère de l’Économie et de l’Innovation to be in charge of the enforcement of its incorporating Act. It has the objective to promote the establishment of new companies and to provide the infrastructure needed to the implementation of significant scope companies.

Emphasizing its values to offer high grade customer services, sustainable development and environmental protection, partnerships and commitment to excellent, the SPIPB articulates to

support to the implementation of new companies and existing ones regarding construction, environmental standards and rules, site selection, technical data and

information related to business assistance programmes, work force, transportation and demography.

It also provides services related to the implementation of the business, maintenance and operation of the port facilities, buildings and industrial park infrastructure (road, aqueduct, sewer and industrial water networks).

As a major industrial park, the SPIPB builds and maintains its own road network meeting the special heavy transportation

standards. Moreover, highway 30 passes through the Industrial Park and junctions with highways 20, 40 and 55 thus linking Montreal and Quebec City. These multilane highways provide access to the whole North American road network.

From a marine perspective, the Port of Bécancour is accessible and functional year round. It can be accessed by ship requiring 35 feet (10.67 metres) of water depth. In addition to its jetty, divided into five berths for a total of 1,130m including a Ro-Ro ramp, port facilities provide 175,000m² of available storage space. Many other maritime services are available like unloading, towing, customs, marine agency, potable water, electricity and communications.

The SPIPB is also serviced by the Canadian National (CN) railway network which allows the merchandises to cross the continent from east to west, and from north to south. It gives access to the ports on the Atlantic Coast as well as the Pacific Coast. It is also linked to the Kansas City Southern (KCS) railway network which provides access to Mexico.

In early 2020, the Toledo-Lucas County Port Authority was awarded $16 million in grant funding through the United States Maritime Administration (MARAD) Infrastructure Development Grant Program. These grant funds are being used to reconstruct and upgrade the dockwall at the Port of Toledo’s General Cargo Dock, operated by Midwest Terminals, and will also be used to construct a liquid transloading facility at the site.

An additional $8 million local match, funded by the Ohio Department of Transportation’s Maritime Assistance Program, was added to the $16 million grant to fund both components of the $24 million project, which are part of a ten-year master plan to upgrade current connections from multi-modal to an integrated intermodal port transportation network.

and modifications to all dock-related components, existing rail system, site utilities and storm drainage.

The project is broken into six components, the first one includes project design, which is nearly complete; the second includes site paving and drainage reconstruction; and the third is site electrical and lighting upgrades, which are both under way.

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US MARAD programme boosts development at the Port of Toledo

ABOUT THE PORT OF TOLEDO

In early 2021, DGL Consulting Engineers, LLC was selected to provide design services for this project, which consists of designing the necessary repairs

The Great Lakes St. Lawrence Seaway System marine shipping industry supports nearly 238,000 jobs in the US and Canada and generates $35 billion in economic activity. The System moves 143.5 million in metric tonnes of cargo annually. The Port of Toledo supports $669 million in economic activity and more than 7,000 jobs in the region.

Last year, Toledo-Lucas County Port Authority took delivery of a Liebherr 500 crane, which will enable it to handle bigger grabs and heavier project cargo.

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CSL defies global shocks to stay at the top of its game

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CSL’s new purpose-designed diesel-electric self-unloading ship Nukumi has entered service for Windsor Salt (photo: Steve Farmer).

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The CSL Group Inc. (CSL) is a major provider of marine dry bulk cargo handling and delivery services and the world’s largest owner and operator of selfunloading vessels.

Headquartered in Montreal, Quebec, CSL is a Canada-based, privately owned shipping company with commercial operations around the world. Its regional offices are located in Halifax, St. Catharines, Winnipeg and Vancouver (Canada), Boston (USA), London (UK), Bergen (Norway), and Sydney, Whyalla, Perth and Karratha (Australia).

Approximately 1,500 people worldwide — both shipboard and ashore — are employed by CSL. Through its operating divisions — Canada Steamship Lines, CSL Americas, CSL Australia, CSL Asia, CSL Europe and CSL Transhipment — CSL owns and operates a highly diversified fleet of specialized self-unloading vessels, offshore transshippers and Handysize bulk carriers.

In 2021, CSL’s fleet consisted of 47 vessels, including 29 self-unloaders, five transshippers, six bulkers, five pneumatic cement carriers and two self-unloading barges. CSL is also responsible for the commercial management of eight other self-unloading ships as part of the CSL International Pool, and one cement carrier as part of the Eureka Shipping joint venture. In 2021, CSL transported 66.5 million tonnes of dry bulk commodities for customers throughout the world.

Commodities moved include iron ore,

aggregates, grain, cement, gypsum, salt and wheat. Approximately 90% of its revenue is generated from long-term contracts with customers, with contracts ranging in duration between one and 20 years.

Despite the demand shocks (terrible wheat crop, less export ore moving, general supply line mess ups, high inflation, Russian war, Covid, and so forth), CSL has been able to keep its entire Great Lakes fleet out and running productively for the full season. “The many challenges and additional strains of the pandemic didn’t slow down our talented and resilient ship and shore teams, who continued to provide the safe and sustainable marine transportation solutions our customers rely on. Working together as a strong and cohesive team, our seafarers and shore side staff demonstrated every day that CSL is a company fuelled by ingenuity and a sense of responsibility toward people and our planet,” said Louis Martel, President and CEO of CSL.

BIODIESEL: SAFEGUARDING THE FUTURE To achieve decarbonization in the maritime industry at the scale and speed required to meet the goals of the Paris Agreement, readily available solutions are needed to reduce greenhouse gas (GHG) emissions for existing shipping fleets.

CSL is continuing its leading work on new fuels and technologies and is running eight Lakers on 100% biofuel for the RiverTough bearings second season in a row.

Thordon.the As part of its quest tofrom precipitate

decarbonization of its ships, CSL launched its biodiesel demonstration programme in 2019 with tests on the auxiliary engine of one vessel in its Great Lakes fleet.

In 2020, the programme progressed to testing on the main and auxiliary engines of two vessels, and in 2021, trials were conducted on eight CSL Lakers.

CSL’s pilot project was successful in demonstrating the technical viability of biodiesel for existing marine engines and its efficacy as a transition fuel towards the decarbonization of the marine transportation sector. v Why test biodiesel on ships?

Biodiesel is a drop-in fuel option for vessels that does not require retrofitting or major modifications to ships or infrastructure. The fuel can be delivered through existing supply and bunkering facilities and, depending on the source of feedstock, can reduce well-to-wake greenhouse gas emissions by over 80%. v Testing and analysis: over the duration of CSL’s trials, various grades of biofuels were tested on bulk carriers and self-unloading bulkers on a range of engine loads and configurations.

The fuel’s NOx emissions were measured in accordance with EPA 7E, while sulphur content was measured in accordance with ISO 8754.

Emissions testing and fuel analysis was conducted at different biocontent concentrations to measure

GHGenius life-cycle emission inventory tool. v Due diligence: prior to commencing the biofuel trials and receiving approvals from the flag state and port state control, DNV was engaged to conduct a risk assessment. Mitigating actions were developed for the following identified risks: o increase in NOx emissions; o waxing at cold temperatures; o spontaneous combustion of soaked rags; o low viscosity of the fuel; o degradation of the piping system; o loss of fuel conditioning module; o clogging of filters; o fuel degradation in storage tanks; o inadequate fuel treatment; and o lube oil contamination. v Fuel properties and measurements: a biofuel standard for marine fuel does not currently exist at the concentrations used in CSL’s trials.

The fuel was evaluated against ISO 8217:2017 with the exception of bio content, which was measured in accordance with EN 14103, a European standard for measuring high concentrations of biofuel.

All grades of biofuel and their properties were analysed, confirming their compliance with the values specified in ISO 8217:2017. As

expected, FAME was measured at higher concentrations than the 7% allowed by the marine fuel standard.

Additionally, while the standard allows for a pour point at –6°C, CSL’s testing conditions were at temperatures that did not go below 0°C. During the trial, bunker tanks were not heated and tank temperature remained around 13°C. v Results: CSL’s tests successfully demonstrated that biodiesel is a technically viable and practical fuel option for existing ships to reduce well-to-wake GHG emissions and reduce SOx and NOx emissions below regulatory limits.

Among the findings: o total NOx emissions remained within Tier II limits for all grades of trialled biofuels; o during B50 and B80 trials, NOx emissions were less than indicated in the technical file, suggesting that biofuels may be effective in reducing NOx emissions. o the sulphur measured in all grades of trialled biofuels was below North America Emissions Control Area limits; o SOx emissions were lower than the minimum measurable value of the vessel equipment;

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environmental compliance. In 2019, B50 fuel, a blend of 50% biodiesel and 50% marine diesel oil (MDO) was initially tested and increased to B80 fuel, a mix of 80% biodiesel and 20% MDO. In 2020, the ships trials commenced with a B50 fuel, progressed to B80 and reached B100, which is pure biodiesel made of 100% bio-content second-generation biofuel. In 2021, eight CSL vessels used B100 continuously for a duration of five to eight months.

During each test, engine emissions were measured at 25%, 50%, 75% and 100% load according to their technical file, as well as at their normal operating loads to demonstrate a typical operation. v Biodiesel source: sourced in North America and supplied by Canada Clean Fuels, the biodiesel used during CSL’s tests was produced entirely from waste plant material, specifically refuse soybean oil. The biodiesel is a FAME type, which stands for fatty acid methyl esters, and is produced by transesterification of the soybean oil.

Production of biofuel did not affect food production or supply chains.

The carbon intensity of the selected biofuel was 1.8gCO2eq/MJ, as measured through the Canadian

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photo: Steve Farmer.

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REGIONAL REPORT

o the carbon factor assessment demonstrated that even before a life cycle analysis is performed, biofuels can provide an immediate CO2 reduction of 11.7%. v Conclusions: biofuels represent a viable means to reduce airborne emissions from shipping without a large capital investment from shipowners. The lack of technical issues associated with their use on vessels also make them a low risk option for shipowners and for the marine industry in general.

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CSL’S NEW PURPOSE-DESIGNED DIESELELECTRIC SELF-UNLOADING SHIP BEGINS SERVICE FOR WINDSOR SALT

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In early May this year, CSL’s new dieselelectric self-unloading vessel, Nukumi, successfully completed its inaugural loading and discharge of deicing salt for dedicated customer, Windsor Salt. (For more details on the genesis of the vessel, see ‘Maiden voyage for Nukumi, first diesel-electric Laker’ on p16 of the February 2022 issue of Dry Cargo International.)

“The successful launch of Nukumi’s operations is the culmination of many years of planning with our visionary partner, Windsor Salt, to achieve the next level of safe, sustainable and efficient shipping in the Gulf of St. Lawrence and Great Lakes region,” said Louis Martel, President and CEO, The CSL Group.

“We are extremely proud of our vessel’s early performance, which is a testament to the expertise, ingenuity and skill of our design and newbuild teams who conceived Nukumi, and of our seafarers who are now operating this highly sophisticated ship.”

Purpose-designed to service Windsor Salt’s deicing salt shipping and handling needs in Eastern Canada, the vessel’s stateof-the-art technology and innovative features were put to the test for the first time in May during loading at the Mines Seleines salt mine in the Magdalene Islands and during the discharge in Montreal.

On her first trip to the Mines Seleine salt mine, the ship’s modern hull design and twin-fin diesel-electric propulsion system demonstrated the vessel’s ability to transit through narrow channels more quickly, at lower tide and with exceptional manoeuvrability.

The ship’s fully automated single point of loading and state-of-the-art cargo handling systems performed as designed and eliminated the need for vessel shifting during loading, making for a safer and more

efficient operation.

During discharge in Montreal, the vessel’s shuttle discharge boom arrangement significantly reduced shifting, while sensor technology installed on the boom and programmed to auto-pile mode contributed to saving time and crew effort.

Several innovations built into the design of Nukumi are also reducing the ship’s overall environmental footprint and are expected to reduce greenhouse gas emissions and air pollutants by 25% and 80% respectively, compared with previous ships servicing the same routes. These include diesel-electric tier 3 engines, a ballast water treatment system, a waste heat recovery system, and overall quieter machinery.

“Canadians count on the critical deicing salts that Nukumi will deliver to stockpiles throughout Eastern Canada to help keep roadways safe during the winter,” said Luc B. Savoie, Vice-President and Chief Commercial Officer, Windsor Salt Ltd. “Reducing the environmental impact of shipping our deicing salt and ensuring everyone’s safety are important objectives at Windsor Salt, and we are delighted that this new, advanced ship will help us achieve both.”

CSL is grateful to the Ministère des Transports du Québec for its financial contribution as part of the Ministry’s program to improve the efficiency of marine, air and rail transportation.

“With Avantage Saint-Laurent, our government has given Quebec a clear vision for the marine industry: aligning economic development and protecting ecosystems. CSL’s Nukumi is a perfect example to what we want to do on the St. Lawrence. I am very proud to support this project, which uses innovative marine transportation practices that respect the environment, and has concrete benefits for communities,” said Chantal Rouleau, Quebec’s Minister for Transport.

2021 HIGHLIGHTS CSL has reported the following as major achievements over the past year: SUSTAINABILITY GOVERNANCE v Identified five additional ESG priorities that define CSL’s business fundamentals. v Aligned ESG data disclosures with the Sustainability Accounting Standards Board (SASB)'s Marine Transportation Industry standard.

HEALTH AND SAFETY FIRST v Supported crews in maintaining safe vessel operations throughout the pandemic and rolled out crew

vaccination programs across regions. v Reduced the Total Recordable Case Frequency Rate (TRCFR) by 12.5%, continuing a year-over-year downward trend since 2012.

DECARBONIZATION v Utilized B100 biodiesel on eight vessels, resulting in lifecycle CO2eq emissions reductions of 80%, compared with using marine gas oil. v Eliminated ozone depleting refrigerant gases R22 and R409A from the fleet. v Achieved a 26% reduction of CO2eq per tonne of cargo moved compared to 2005.

PROTECTING LIFE BELOW WATER v Completed the installation of six ballast water treatment systems in the global fleet. v Supported the development and testing of a real-time cavitation monitoring system.

RESOURCE CONSERVATION AND SUPPLY CHAINS v Produced 61% less shipboard waste per crew per operational day than in 2010. v Eliminated incinerator use in the Canadian fleet. v Recycled three vessels in the most responsible way possible.

ETHICS AND INTEGRITY v Investigated and treated 21 alleged breaches to CSL policies, which were also reported to the Audit and Risk and Human Resources Committees of the Board of Directors.

INVESTING IN PEOPLE v Ensured a safe return to the office and initiated a transition toward a hybrid work environment. v Was named one of Montreal's Top Employers for the third consecutive year. v Enhanced diversity and inclusion with the creation of a new position.

EMPLOYEE AND COMMUNITY ENGAGEMENT v Donated approximately 1% of total net profit to charitable causes and disaster relief. v Established a new corporate donations pillar to support Indigenous organizations and initiatives.

CREATING VALUE FOR CUSTOMERS v Delivered four vessels to meet customer requirements including the state-of-the-art 26,000dwt selfunloading ship, Nukumi, built to service Windsor Salt. v Achieved a Net Promoter Score of 9.04 in the annual CSL customer survey. v Acquired a minority stake in Canadian engineering firm EMS-Tech Inc.

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Trade Winds blowing at the Port of Monroe The Port of Monroe, along with port tenant Ventower Industries (Ventower) and terminal operator DRM, is working to develop and expand new renewable energy supply chain opportunities during the 2022 shipping season.

The port and DRM are working to load wind tower sections manufactured in Monroe by Ventower for outbound shipment on US-flagged barges. The wind towers are being transported to the Port of Oswego, New York where they will be staged with other components for delivery to a project site in upstate New York.

Ventower Industries is the only active wind turbine tower manufacturer in the United States located at a port. The relationship between the Port of Monroe and Ventower has been critical in developing these new supply chains. A load of tower sections was loaded aboard a foreign-flagged vessel in 2019 for delivery to a project in South America but this current project is a positive step forward for short-sea-shipping on the Great Lakes.

“The fabrication of utility-scale wind turbine towers is what we do best. When you combine the skills of our manufacturing team and the capabilities we developed at our Port of Monroe manufacturing facility with a world class marine transportation facility next door, it creates an environment which allows us to serve our customers more effectively and makes our products that much more competitive in the region,” said Gregory Adanin, CEO/President at Ventower.

Ashton Marine Corporation, a Michigan-based tug company, is handling the transportation for the project.

“We are honoured to partner with the

Ventower Industries Inc., located at the Port of Monroe.

Port, Ventower and DRM on this renewable energy project,” said Seth Andrie, President of Ashton Marine.

“Transporting project cargo for our customers throughout the Great Lakes is one of our specialties.”

In 2016, the U.S. Maritime

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Administration designated the Port of Monroe as part of the Marine Highway Route M-90. As a Marine Highway, the port and its stakeholders are committed to developing and expanding marine highway service options in the United States to expand the use of America’s navigable waterways.

“In a single project we have Michigan manufactured renewable energy components, built right here at the Port of Monroe, being transported under the American flag on a designated Marine Highway Route,” said Capt. Paul C. LaMarre III, Port Director at the Port of Monroe. “The Port of Monroe is proud to be at the forefront of domestic cargo diversification which will ultimately benefit the system as a whole.”

The port recently welcomed a new Manitowoc crawler crane to the port which will be used to load tower sections.

Funds to purchase the crane were awarded through the Marine Highway programme.

The wind tower project is expected to be completed later this summer.

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‘Mark W. Barker’ bulker operational with Thordon’s robust RiverTough bearing Mark W. Barker, the first new U.S flagged Great Lakes bulker in almost 40 years (see ‘Maiden voyage under way for first USflagged Great Lakes bulk carrier in nearly 40 years, on p98 of this issue), has successfully completed sea trials and has now begun trading throughout the freshwater lakes and river networks with oil-free propeller shaft bearings from Thordon Bearings.

Built in Sturgeon Bay, Wisconsin, by Fincantieri Bay Shipbuilding for The Interlake Steamship Company, Thordon’s scope of supply includes a water lubricated RiverTough bearing, Nickel-ChromiumBoron (NCB) alloy liner for a propeller shaft diameter of 445mm (17.5in), and two Thordon Water Quality Packages.

Thordon’s authorized distributor in Ohio, Advanced Sealing Technology, worked with the ship owner to get the RiverTough package specified.

Designed to transport salt, iron ore, stone, and other bulk cargoes throughout some of the narrowest rivers in North America’s Great Lakes region, including the tight bends of the Cuyahoga River, the single screw Mark W. Barker is the sixth Interlake Steamship vessel that Thordon’s proprietary polymer bearings have been installed.

“Interlake has had a lot of success with our propeller shaft bearings,” said Jason Perry, Thordon’s Regional Manager, North America. “Their vessels operate in some of the region’s narrowest, shallowest waterways which means vessels are unable to turn and instead must reverse using bow and tunnel thrusters. When operating at lower shaft speeds, the RiverTough polymer formulation reduces friction and bearing wear. The material can also withstand operations in highly abrasive, very sandy

The Mark W. Barker, equipped with Thordon Bearings’ RiverTough bearing. environments.”

Wear rates for RiverTough are typically less than half that of rubber bearings based on ship owner feedback.

Offering increased resilience, easier shaft alignment and less edge loading, lubricants in the polymer material reduce friction levels during nearly-dry starts, significantly eliminating stick-slip and vibration at low shaft speeds. Results from shipowners have shown wear rates of 0.075mm to 0.100mm (0.003in to 0.004in) in 6,000 to 7,000 hours of annual use.

Commenting on Interlake’s long-term relationship with Thordon, Ian Sharp, Interlake’s Director of Fleet Projects, said: “From the outset, Thordon always responds quickly to our requirements with its bearing expertise, technical know-how and customer service. Having multiple RiverTough bearings in operation with proven reliability made it a very simple decision to choose the same Thordon bearing for our new ship.”

With a hull optimized for energy efficiency the 28,000dwt River-class bulker is powered by a pair of 400HP main engines

driving a single controllable pitch propeller through twin-input, single out-put reduction gearbox. It is the first ship to operate on the Great Lakes with engines that meet EPA Tier 4 emissions standards.

EPA Tier 4 standards entered into force in January 2017, requiring marine engines rated at 600kW and above to be fitted with technologies capable of significantly reducing nitrogen oxide (NOx), sulphur dioxide (SOx) and particulate matter (PM).

Craig Carter, Vice President Business Development added: “Mark W. Barker is truly a milestone ship for Interlake and we are proud to be associated with what is arguably one of the most advanced, energy efficient self-unloading bulkers to operate on the Great Lakes.

“Our relationship with Interlake Steamship and Bay Shipbuilding dates back to 1998 when we installed propeller shaft bearings to the 25,000dwt Kaye E. Barker.

Since then, we have enjoyed a very productive, collaborative relationship with both owner and yard and look forward to working together on future projects.

ABOUT THORDON BEARINGS Thordon Bearings designs and manufactures a complete range of journal bearing and seal systems for marine, clean power generation, pump, and other industrial markets. The bearing systems are manufactured using Thordon proprietary non-metallic polymer materials that are lubricated with water eliminating oil or grease usage, meaning zero risk of oil pollution to rivers, lakes and oceans and elimination of lubricant costs. Thordon systems and bearings are available worldwide through over 70 agents and distributors.

REGIONAL REPORT

Fertilizer storage contracts for Calhoun Super Structure

The VP Series 150 x 260 for East Lynn Fertilizer.

THE CHALLENGE OF FERTILIZER STORAGE

prevent weather elements from entering the dry bulk storage structure.

Another innovative way to combat bacterial contamination is by adding heated concrete floors. The heat helps keep the concrete from sweating, so the dry bulk materials are less susceptible to mold or bacterial growth. Additionally, these heated floors further promote a safer, less slippery environment for front-end loaders and workers on site.

The following case studies relate to fertilizer storage.

CASE STUDIES EAST LYNN FERTILIZER: SMALL TOWN, BIG STORAGE SOLUTION

Industry: Fertilizer storage Location: Hoopeston, IL Dealer: Greenfield Contractors Calhoun building: VP – 150x260x20 Cost-efficient, customizable and corrosionresistant: the ideal combination for enclosed fertilizer storage. With lower material costs and a shorter installation timeframe of under six months, compared to traditional wood or metal buildings, fabric structures are valued as the favourable fertilizer storage solution – with a higher return on investment overall. v The challenge: as a family-owned and operated business, East Lynn Fertilizer sought a quality storage solution – crafted to withstand fertilizer’s highly corrosive properties – at a reasonable cost. The company needed a structure

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Fertilizer is known for its corrosive properties, which present a great threat to storage buildings’ steel elements. The most durable fabric structures include hotdipped galvanized (HDG) steel frameworks and stainless-steel cables to avoid the rust, pitting and damage traditional storage buildings often endure. For HDG, the fabricated steel trusses are fully submerged in a bath of molten zinc. The dipping process covers the steel down to the smallest crevice, inside and out, to maximize structural integrity and defend against deterioration.

Fertilizer storage requires a solution that addresses the issue of bacterial contamination. Storage buildings require quality ventilation systems to help keep materials like fertilizer dry to mitigate mould and bacterial growth, leaching or potential denitrification. Innovative fabric storage structures offer different tiers of ventilation for optimal odour control, moisture resistance and airflow.

One viable option is end-wall vents.

With this method, aluminium or mesh panels are installed at different ends of the fabric building to promote crossventilation. This is a simple, maintenancefree solution, as the end-wall vents operate passively in the building. Another, more advanced option is fan or exhaust vents, which initiate and maintain airflow in the building. Exhaust vents are helpful for not only providing circulation but can also help

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Calhoun Super Structure offers a diverse portfolio of engineered fabric structures for various industries and applications anywhere in the world, including the dry cargo industry. The family-owned company is headquartered in Tara, Ontario, Canada, with US offices in Shakopee, MN and Terre Haute, IN. Calhoun takes pride in ownership of every building it manufactures and sells through its dealer network across North America. The company’s mission remains to diligently pursue excellence in all aspects of product design, manufacturing, and supply by focusing on the development of people, innovation, and sound engineering. The company’s vision as an industry leader is to be the safest, most reliable and durable fabric structure.

Calhoun’s Versatile Profile (VP) Series is ideal for dry cargo operations and comes standard with hot-dipped galvanized steel frames and hardware, individual keder panel fabric system and its proprietary J-purlin.

The J-purlin design provides unmatched stiffness and capacity that allows Calhoun to increase bay spacings while simultaneously reducing the quantity of purlin runs in the building — resulting in a more cost-efficient structure that reduces the movement and shifting of conveyor systems. The VP Series can be installed on a variety of foundations from concrete walls or piers to helical anchors or i-Beams.

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that was customizable, allowing enough space to accommodate conveyors, large vehicles and on-site personnel. Given the structure’s strategic location on a rail line in Eastcentral Illinois near the Indiana border, Calhoun engineering experts worked to ensure the building was fully tailored with the dimensions and structure style needed to meet East Lynn Fertilizer’s specific storage requirements. v The solution: overall, customizability and cost-efficiency remained top priorities for the customer. Calhoun engineers included a customizable leg height, providing more space to elevate the fertilizer with an overhead tripper conveyor. A vertical mixer was also installed outside to transfer fertilizer directly to the loading truck.

Additionally, given that East Lynn Fertilizer is family-operated, Calhoun added an office space inside the building for personnel to closely monitor activities on-site. v Combating corrosion & bacteria: being a highly corrosive material, fertilizer warrants a durable storage building, engineered to protect against deterioration. To combat corrosion, Calhoun includes hot-dipped galvanized steel frameworks and stainless-steel cables within each of its structures — to avoid the pitting, rust and damage traditional storage buildings commonly suffer. These quality, durable elements offered East Lynn Fertilizer an even higher return on investment overall. To maintain the fertilizer’s integrity, proper ventilation is crucial to prevent mould and bacterial growth. Calhoun experts included four gravity vents on both ends of the customer’s structure to create and maintain airflow within the building.

For cost-effective and reliable storage, fabric-covered structures with optimized ventilation are the premier option.

OTTAWA BARGE TERMINAL: DERECHO DESTRUCTION Industry: Fertilizer storage Location: Ottawa, IL Dealer: Greenfield Contractors Calhoun building: CC 72x264x12 Storing fertilizer is no easy task — mould, rust, poor ventilation and limited loading space are all challenges that often manifest.

Being a highly corrosive material, fertilizer requires a durable storage solution, protected against deterioration and harsh weather conditions. With sustainable

The CC Series 72 x 264 for Ottawa Barge Terminal.

materials and reduced installation time, fabric structures are the optimal fertilizer storage solution. v The challenge: after a derecho wind storm swept through the Midwest in August 2020, the customer needed to rebuild a reliable, accessible fertilizer storage structure at the Ottawa Barge Terminal. As the storm powered through Ottawa, the terminal’s previous fabric fertilizer structure suffered extreme damage.

This building was designed and installed by another manufacturer. Following the storm, Greenfield Contractors demolished the building and replaced it with a long-lasting Calhoun structure early this year. v The solution: given tough environmental conditions, durability was top of mind for the customer.

Calhoun’s high-density polyethylene (HDPE) fabric is manufactured with an advanced film for UV-resistance, flexibility, seam strength, longevity and even corrosion-resistance. HDPE’s heavyweight, flexible material and Calhoun’s closely spaced trusses were optimal for protecting the Ottawa Barge’s valuable assets — while withstanding monstrous winds. v Corrosion defence: to combat fertilizer’s corrosive properties, Calhoun used stainless steel cables and hot-dip galvanized (HDG) steel — fabricated steel fully immersed in a bath of molten zinc. In this case, HDG steel was preferred, as its cathodic protection prevents the pitting, rust and deterioration that most fertilizer storage buildings endure. This also

allowed Calhoun to create a building with enough clearance for large vehicles, as the fertilizer was frequently loaded and unloaded into semi-trucks from the barge to the storage building. v Customization: to accommodate the Ottawa Barge’s needs, Calhoun fully customized this structure with tailored heights and a free span interior. Engineers used an eight-foot leg, allowing for ample side clearance and more usable space. With the free span floor plan, Calhoun was able to help optimize fertilizer storage space and enhance the customer’s business operation overall.

NEW COOPERATIVE INC.: THE BARGE IN BLENCOE Industry: Fertilizer storage Location: Blencoe, IA Dealer: Greenfield Contractors Calhoun building: VP – 170x340x70 Enclosed fertilizer storage structures are commonly composed of wood or metal — but when it comes to combating corrosion or challenging environmental conditions, a traditional storage building is not the viable option. With increased customizability and a higher return on investment, fabric structures offer an innovative fertilizer storage solution that is engineered to last, even in the toughest locations. v The challenge: since the 1930s, companies and farmers unloaded fertilizer barges at a select location along the Missouri River near Blencoe, IA – though, no barges had visited this spot since the early 2000s.

However, in 2019, NEW Cooperative purchased the 34-acre location from a

REGIONAL REPORT

The VP Series 170 x 340 for New Cooperative Inc. private owner and built a floating dock, capable of hosting six barges.

Anticipating multiple barges, the endcustomer needed a long-lasting structure, equipped to store over 20,000 tonnes of fertilizer and withstand poor riverside soil conditions. Greenfield Contractors worked diligently with Calhoun engineering experts to customize a fabric fertilizer building, poised to meet the customer’s specific needs. v The solution: given the Missouri River location, protecting assets from harsh weather conditions remained a top

priority. As such, a three-foot-tall concrete stem wall was attached to the fabric to safeguard assets from potential flooding. Additionally, to easily transport fertilizer within the building, Calhoun engineers installed a Sackett-Waconia overhead tripper belt conveyor — collaborating closely with the conveyor manufacturers to ensure all elements aligned with the structure’s specific dimensions. v Ultimate customization: fertilizer storage buildings require significant open space to support large vehicles, conveyors and on-site personnel. To

accommodate NEW Cooperative’s needs, Calhoun provided them with a customizable leg height and installed an off-center conveyor to increase usable space. v ROI: storing fertilizer warrants a durable, tailored building solution guaranteed to withstand the material’s abrasive properties and optimize storage space. With lower material costs and a shorter installation timeframe of under six months, this fabric structure ultimately provided the end-customer with a higher DCi return on investment.

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DRY CARGO

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To find out how you can benefit from advertising in the world’s only monthly dry bulk publication contact Jason Chinnock or Andrew Hucker-Brown on: Tel: +27 31 583 4360; Fax: +44 1206 700840; Email: info@dc-int.com

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bulk on the east coast of North America

REGIONAL REPORT

Eastern promise

Port Saint John is connected with experienced stevedores and a skilled labour force.

Port Saint John – experienced and ready for more wind projects

The port is uniquely positioned in the

are well known internationally. This enables these companies to be active globally in the project cargo space throughout the year. A well-trained labour force supports them: the International Longshoreman Association (ILA). The ILA has handled various project cargoes in the past few years, including, but not limited to: cable reels, monopiles, nacelles, blades, and towers. Recognizing the growth at the port, and planning for the future, the ILA has been proactive in growing its workforce, and is expanding its numbers in the coming years. This bodes well for wind projects in the short, medium, and long term.

The Province of New Brunswick has invested in a task force known as the ‘Workforce Partnership’ which is dedicated to ensuring the port has well-trained and sufficient labour. This task force recently invested in a new training simulator for the ILA to continue to build efficiencies at the port. This unique approach to the labour market ensures that skill sets adapt for the needs of cargo owners for years to come.

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PORT SAINT JOHN EXPERTISE

heart of both an urban and industrial centre; this presents great opportunities for wind projects.

As a result of the industrial cluster that has formed in the greater Saint John area, the region offers two immediate crane solutions: Irving Equipment, and A.W. Leil.

Their expertise and fleet of cranes ensures the port is able to offer solutions based on the various needs that exist for projects.

The port has also used other providers for renewable projects such as Mammoet.

For those looking for aggregate to complement their project, Port Saint John has a number of quarries in the immediate vicinity. These quarries are positioned to supply offshore sites with small rock all the way up to large boulders depending on needs. Because of the proximity to the port, the product can be exported from two terminals at Port Saint John providing competitive stevedoring options.

For handling cargo, Port Saint John offers three different stevedores to work with: DP World, LOGISTEC, and QSL. Each has a local presence in the market, but also

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Port Saint John is often associated with being Canada’s east coast energy shipping hub, and welcoming cruise ships throughout the summer and autumn months to the Uptown City core.

However, Port Saint John has much more to offer. Over the last year the port moved over 1.6 million tonnes of potash and became the second-fastest-growing container port on the east coast of North America.

Despite this growth, the port remains congestion-free thanks to three class one railways (CP, CN, and CSX) calling on the city, and strong road infrastructure within a day’s drive of Boston, Montreal, and New York. The port is also ice-free with no air draught restrictions and continues to offer land for project cargo. These advantages work well for project cargo solutions such as wind projects that are looking for an eastern North American port to set up in the short, medium and long term.

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Port Saint John has ample space for large wind turbine cargo to be offloaded and stored.

TERMINALS AVAILABLE FOR PROJECT CARGOES

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Beyond its workforce, Port Saint John also currently offers three terminals for project cargo, and one overflow location. v Lower Cove, adjacent to the second cruise terminal, is a 16.8 acre terminal and 1,000 lbs per square foot capacity.

With a ro/ro notch available at the slip, in the past three months it has seen both wind and project cargo cranes offloaded at the terminal.

These components are then removed by truck and distributed to their final destination. v Long Wharf remains an active terminal for wind projects and cruise activity. Serving as the port’s third cruise berth, the terminal often sees six to eight vessels over the months of September and October each year.

When not in use for cruise, over the past four years the terminal has

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Long Wharf offers 16.8 acres of land and 1,000 lbs per square foot loading capacity.

served multiple windmill projects for the region and remains open to other opportunities including offshore wind activities in the region. Like Lower Cove, Long Wharf offers 16.8 acres of land and 1,000 lbs per square foot loading capacity on the pier. Of note, higher loading rates have been achieved at the Long Wharf pier in the past, but higher load bearing needs require an engineering study to be completed in each case. v Finally on the west side of the port, DP World offers over 70 acres of multi-purpose terminal. With the opening of a new pier in Q1 of 2023 that boasts a load bearing capacity of 2,000 lbs per square foot, DP World is able to offer two piers for cargo activities including wind components.

In 2024 their total footprint will expand by over 18 acres as additional back land is created behind the new

pier increasing the overall ability for their facilities to manage wind projects in the short term.

Finally, those looking for longer term storage needs, Port Saint John has approximately 14 acres of back lands (Lot X and Y) that can be used on a case-bycase basis.

FUTURE GROWTH AND A COLLABORATIVE APPROACH

Like all ports, Port Saint John continues to look towards the future. The port authority believes in a collaborative approach to working with the port’s community stakeholders. It also believes that, in order to facilitate long- growth, it will be necessary to continue to expand available acres and piers at the port. As a solutions-focused port, collaboration from the wind industry to implement projects of any scale is warmly welcomed.

Castaloop USA, a subsidiary of Montreal-based LOGISTEC Stevedoring, has expanded its marine operations in the US after opening a new inland waterways terminal at Lemont in the midwestern state of Illinois.

The facility, boasting 13 acres of outdoor storage, will provide bulk, breakbulk and project cargo operators with marine and cargo handling services on the Illinois River at mile marker 300, connecting to the Mississippi River System and its tributaries.

According to LOGISTEC, the Lemont terminal is strategically located to serve markets in the greater Chicago area with bargeto-truck services, and easily accessed through the interstate highway network.

The site boasts 65,000 feet of indoor warehousing for steel, non-ferrous metals, forest products, super sacks and palleted cargo.

“Our operations are up and running at Lemont with the recent handling of steel piping destined for the oil and gas market in the southern US,” said Mike Taylor, Castaloop’s general manager at Lemont.

“The terminal has available

The new Castaloop facility provides direct link to global markets through the Midwest river system.

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capacity, and we are ready to work with customers to get their products to market safely and efficiently.”

Parent company LOGISTEC offers bulk, breakbulk and container cargo handling services in 53 ports and 79 terminals throughout North America.

It also provides marine transport services geared towards the Arctic coastal trade.

The company will be exhibiting at Breakbulk Americas 2022, taking place on 27-29 September at the George R. Brown Convention Centre in Houston.

REGIONAL REPORT

LOGISTEC subsidiary opens new inland waterways terminal at Lemont

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Port of Montréal — keen to be green

The Port of Montréal is a diversified hub handling all types of cargo: dry bulk, liquid bulk, containerized, breakbulk and oversized cargo. Located 1,600 kilometres inland from the Atlantic coast and at the centre of a fully integrated rail, road and pipeline network, the Port of Montréal is an essential link in the supply chain of the major consumer markets in Eastern Canada, the US Midwest and Northeast.

A hub for dry bulk cargo handling , the Port of Montréal is a vital gateway for raw materials such as iron ore, salt, minerals and much more. The 12 dry bulk berths in Montréal and Contrecoeur allow the Port of Montréal to better serve the many industrial production sites in Eastern Canada.

The Port of Montréal is also a hub for grain exports. More than 4mt (million tonnes) of grains in bulk transit every year through its elevator. Containerized grains account also for more than 1mt every year.

This segment of bulk containerized cargo has been growing in the past few years thanks to the port’s rail connections and to partnership with local partners that are able to transload bulk grain from railcars to containers. Montréal is becoming more and more a hub for exports of agricultural products from the Canadian and American farmers.

The Port of Montréal operates its own

network of direct access on-dock rail, with close to 100 km (60 mi.) of track.Trains are worked directly alongside bulk berths and storage areas. This on-dock rail system is connected to major North American markets through both Canadian National (CN) and Canadian Pacific (CP) networks.

BULK FACILITIES AT THE PORT OF MONTRÉAL A hub for solid bulk cargo handling, the Port of Montréal is a vital gateway for raw materials such as iron ore and salt minerals for roads, as well as gypsum, gravel, raw

sugar and other products. The 12 solid bulk berths in Montréal and Contrecoeur, as well as direct access to the CN and CP rail networks give the port a competitive advantage for shipping goods. LOGISTEC Stevedoring is the operator for general bulk.

When it comes to grain cargoes,Viterra Inc and CanEst Transit Inc operate at the Port of Montréal. The port’s large cargo capacity makes its grain elevator one of the fastest and most efficient on the Saint Lawrence river.

Its year-round operations and ability to

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accommodate unit trains allow the facility to maintain links with international markets at all times.

The Port of Montréal also has a facility dedicated to the containerization, storage, cleaning, sifting and packaging of agricultural products. This facility is strategically located near the container terminals.

Breakbulk, general and oversized cargoes are also handled efficiently at the Port of Montréal. Both LOGISTEC Stevedoring and Stevedoring Empire are experienced and expert operators to handle these cargoes.

Chantal Rouleau, Minister for Transport and Minister Responsible for the Metropolis and the Montréal region, and Martin Imbleau, President and CEO of the Montreal Port Authority.

PORT OF MONTRÉAL RECEIVES $15+ MILLION TO SUPPORT QUEBEC’S ECONOMIC RECOVERY

The Montreal Port Authority (MPA) was delighted to receive $15,449,000 in financial support awarded by the Government of Quebec for the construction and repair of marine infrastructures (see photo above, right). The announcement was made on 23 June at a press conference at the Port of Montréal’s Grand Quay by Chantal Rouleau, Minister for Transport and Minister Responsible for the Metropolis and the Montréal Region.

This amount will be used to carry out three projects geared to support Quebec’s economic recovery: the repair of Berth 28 in the Port of Montréal, the repair and widening of the Pie-IX railway bridge, and continuation of the construction work on the overpass spanning Notre-Dame Street.

These projects will go a long way to support intermodality by maximizing links with land transportation in an ecoresponsible framework, to improve the flow of road traffic in the port and to reduce truck traffic on the local road network.

GREEN INITIATIVES TAKE CENTRE STAGE THE PORT OF MONTRÉAL JOINS THE GETTING TO ZERO COALITION In May this year, the Port of Montréal announced that it has joined the Getting to Zero Coalition. An alliance of more than 150 companies in the maritime, energy, infrastructure and finance sectors, the Getting to Zero Coalition is working to decarbonize the shipping industry by introducing zero-emission commercial ships and developing carbon-neutral bunkering solutions.

For many years, the Port of Montréal has been fully committed to developing greener bunkering solutions and decarbonizing its activities. Its membership in the Getting to Zero Coalition reflects its strategic vision anchored in sustainable development, well in line with its participation in the Call to Action for Shipping Decarbonization and the United Nations Global Compact.

“It is a priority for us to take hands-on action in the energy transition. The

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THE MPA DISTINGUISHES ITSELF IN GREEN MARINE’S 2021 PERFORMANCE REPORT For the 15th consecutive year, the Port of Montréal has been recognized by Green Marine for its good practices in sustainable development and its effective environmental management of port activities (see picture, below left).

The MPA stood out among the 52 Green Marine member ports, continuing its tradition of being among the most ecoresponsible port authorities in North America.

The MPA is proud to have achieved a flawless score of five out of five in several categories of the certification programme, including Environmental Leadership, Waste Management, GHG & Air Pollutants and Community Impacts.

It also received a four out of five in the category of Spill Prevention & Stormwater Management. The results were presented at the annual Greentech 2022 conference held in Montréal from 8 to 10 June.

“It is with great pride and appreciation that we receive our 2021 certification from Green Marine. There is a tremendous amount of team work behind these excellent results and I must thank and congratulate everyone who has helped make the Port of Montréal the environmental leader that it is today!” said Martin Imbleau, President and Chief Executive Officer of the MPA.

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L-R: Carole Nuttall, Environmental Advisor at the MPA, David Bolduc, Executive Director of Green Marine, Christine Piché, Secretary for the Environment Service at the MPA, and Claude Deschambault, Environment Director at the MPA.

Getting to Zero Coalition has ambitious objectives and the Port of Montréal is proud to support this volition, and further strengthen its commitment to the shipping industry through decarbonization and to the future of the planet,” said Martin Imbleau, President and Chief Executive Officer of the Montreal Port Authority.

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REGIONAL REPORT

North Carolina Ports: problem solving on North America’s East Coast North Carolina’s ports in Wilmington and Morehead City and Charlotte Inland Port link the state’s consumers, business and industry to world markets and serve as magnets to attract new business and industry to the State of North Carolina.

Port activities contribute statewide to more than 87,700 jobs and $678 million each year in state and local tax revenues.

Containers make up a large proportion of activities at all ports, but there is still a significant volume of bulk, breakbulk and project cargo handled.

North Carolina Ports is renowned for its whiteglove customer service including the handling of project cargo like locomotives.

PORT OF WILMINGTON The Port of Wilmington is strategically located on the East Coast of the United States within 700 miles of more than 70% of the US industrial base. Recent and ongoing improvements to regional and national highway networks ensure excellent surface transportation supporting the Port of Wilmington. CSX Transportation provides intermodal rail service with best-in-class transit times, as well as daily service for boxcar, tanker and general cargo services.

The Port of Wilmington is one of few Southern ports with readily available berths and storage areas for containers and general cargo. Specifically, it offers terminal facilities serving container, bulk, breakbulk, and ro-ro operations. It offers a

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Forest products are the number one export out of the Port of Wilmington (including wood pulp, pictured here).

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deep 42-foot navigational channel, nine berths with 6,768 feet of wharf frontage, four post-Panamax container cranes and three neo-Panamax container cranes.

Modern transit and warehouse facilities and the latest in cargo management technology provide a broad platform for supporting international trade to the fastgrowing Southeast US market.

BULK AND GENERAL CARGO Located on the Cape Fear River, the Port

of Wilmington’s general cargo terminal offers excellent service for bulk, breakbulk, project and ro-ro cargoes. The port’s 42foot channel allows customers additional vessel capacity. The port has direct interstate access to Interstates 95 and 40 and daily train service from CSX Transportation. Wilmington is one of the few Southern ports with readily available berths and storage areas for general cargo.

The port is also a C-TPAT Certified location and is designated as Foreign Trade

REGIONAL REPORT

The Port of Morehead City is capable of the direct transfer of heavy lift and dimensional loads between vessel and rail or truck.

Zone 214, so customers can benefit from significant savings.

CAPABILITIES v container services; v bulk; v breakbulk; v ro/ro; v reefer; v inland transportation; v cold storage; and v Foreign Trade Zone.

THE PORT OF MOREHEAD CITY CLOSE TO THE OCEAN — ACCESS TO EVERYWHERE ELSE

The port is equipped with nine berths and a Liebherr 420 portal gantry crane with 124MT/136ST capacity. Storage offerings include a dry-bulk facility with 220,000tonne capacity warehouse and a 177,000ft2 warehouse for housing high-value commodities like rubber, paper, steel and lumber. All together, there is more than one million square feet of storage, including prime covered and sprinklered, plus 30 acres of paved open area.

The Port of Morehead City has the capabilities to address even the most complex of cargo handling needs. Our experienced labor force and innovative ideas take us beyond the primary products we often move. The capabilities and

CAPABILITIES v bulk; v breakbulk; v ro/ro; v inland transportation; and v Foreign Trade Zone.

PRIMARY PRODUCTS v phosphate; v sulphur; v metal products; v rubber; v wood chips; v aircraft parts; and v grain.

STERLING REPUTATION The Port of Wilmington and the Port of Morehead both have the capabilities to address even the most complex of cargo handling needs. Their experienced labour force and innovative ideas take them beyond the primary products they often move. The capabilities and primary products listed might be what the ports are known for, but they are not what they are limited to. The Port of Wilmington and the Port of Morehead City both have a reputation as problem-solving ports.

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The Port of Morehead City, a breakbulk and bulk facility, is one of the deepest on the United States East Coast, and it’s just four miles from the Atlantic Ocean. It’s also within 700 miles of more than 70% of the US industrial base. Interstates 95 and 40 are easily accessed via U.S. Highways 70 and 17. And train service is provided by Norfolk Southern. Located across the

FROM SEA TO LAND v channel is 45 ft., M.L.L.W.; v within 700 miles of more than 70% of the industrial base of the United States; v rail service provided by Norfolk Southern Railway; and v more than one million square feet of prime covered and sprinklered storage.

primary products below might be what we are known for, but they are not what we are limited to. We are the port of problem solved.

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PRIMARY PRODUCTS v grains; v wood products; v chemicals; v fertilizers; v furniture; v apparel; and v automotive parts.

Newport River from the Port of Morehead City is Radio Island, a 150-acre site perfectly suited for a port industrial development, conveniently supplied with municipal water and sewer.

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REGIONAL REPORT www.drycargomag.com AUGUST 2022

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Record volumes of dry bulk are being handled at Port Everglades Located in the heart of Greater Fort Lauderdale and the City of Hollywood, FL, Port Everglades is one of the busiest cruise ports in the world. It is a also a leading container port in Florida and among the most active cargo ports in the United States. Furthermore, Port Everglades is South Florida’s main seaport for receiving petroleum products including, gasoline and jet fuel.

A foreign-trade zone and available office space inside the port's secure area make it a highly desirable business centre for world trade.

Currently, Port Everglades is moving record tonnes of dry bulk, with cement as the lead commodity. To date for Fiscal Year 2022, from October through June, bulk and breakbulk at the port has grown by 11% with greater than 1.6 million tons when compared to the same time period in FY2021.

The port’s growth results from Florida’s surge in new construction for capital improvements and residential housing, which is increasing overall demand in building materials such as cement, aggregate and steel.

Other commodities, such as rice, marble tile, are coming as breakbulk. Port Everglades has also been getting sand for beach renourishment, which is unusual.

These are commodities which historically came in via conventional container (ocean) carriers.

The new Southport Turning Notch Extension opened to ship traffic in June.

The next steps include moving two cranes into the Notch, adding three more Super Post-Panamax cranes in autumn 2023, and building out more container terminal DCi yards.

NEWS BREAKBULK & BAGGING

Erhardt Projects opens Abu Dhabi subsidiary

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ERHARDT PROJECT CARGO & LOGISTICS MIDDLE EAST

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v The new company, Erhardt Project Cargo & Logistics Middle East, headquartered in Abu Dhabi, will handle the project cargo at MEATI & APAC and act as a link with other regions of interest. v In the year of Erhardt’s 140th anniversary, the opening of the subsidiary is part of the group’s strategy to extend its presence in the regions with the greatest economic growth expectations worldwide.

Erhardt Projects is opening a subsidiary at Abu Dhabi to handle the project cargo sector at MEATI & APAC and mentor customers on their consolidation and growth in those regions. This is in keeping with its ‘Be Where the Project Is, First’ mission.

Erhardt Project Cargo & Logistics Middle East, the subsidiary whose capital is 100% owned by Erhardt, will handle the project cargo in one of the regions with the largest investments in developing sectors such as oil & gas, refineries, renewables and civil infrastructure, and with greatest

growth expectations worldwide.

Igor Muñiz, Erhardt Projects General Manager, considers the opening of the Abu Dhabi subsidiary to be a highly important step in the strategy to provide a customeroriented, tailored and integrated logistics service, as logistics chains become global.

“Mentoring our customers on their strategic projects and marketing, forging long-term relations of trust and, being present where their decision-making centres are, will allow us to continue

consolidating our position as a ‘global logistics operator’,” stressed Muñiz.

In March of this year, Erhardt Projects, which was already operating on a global market, altered its corporate name to better reflect the new reality in which its subsidiary will be operating in the capital of the United Arab Emirates.

Erhardt Projects is convinced that one of its greatest strengths is the multiculturalism and diversity of its teams and partners. It has therefore brought

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“We will continue to drive integrated services that help to connect and streamline customers’ supply chains to continue growing. This is in keeping with the planned process to expand to new markets, as set out in our strategy,” explained Muñiz.

In the year of Erhardt’s 140th anniversary, the opening of the subsidiary is a new milestone in its long history, and a new reality that contributes to its commitment to growth by means of greater internationalization of the company.

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international and local talent with a proven track record onboard for the new subsidiary. It is likewise establishing partnerships with local economic stakeholders to immerse the company in the local idiosyncrasies and which will help to fast-track its positioning in MEATI & APAC.

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BEUMER Group to deliver 14 high-capacity palletizers to cement manufacturer Cruz Azul MAJOR ORDER FROM MEXICO Due to legal requirements, the Mexican cement manufacturer Cruz Azul has to change its production from 50kg to 25kg bags in the future. Thus, the company will have to handle twice the amount of bags while maintaining the same capacity. In order to meet this logistical challenge, Cruz Azul has commissioned BEUMER Group to supply 14 high-capacity palletizers.

The Cooperativa La Cruz Azul with head office in Mexico City is one of the leading cement manufacturers in Mexico. The company has four plants in the country — the main plant is located in the state of Hidalgo. In addition to cement lines, Cruz Azul also operates building material lines.

What has been partly implemented in Europe and the USA for decades is now coming into effect in Mexico: the government has decided to switch from 50kg to 25kg bags at the beginning of 2023. This change will be implemented in BEUMER Group is set to 14 high-capacity palletizer to Mexico. One system achieves an output of order to protect the health of the 5,500 to 6,000 bags per hour (photo:: BEUMER Group GmbH & Co. KG). workers who have to lift and carry these bags.

Cruz Azul must therefore be able to bag, palletize and pack twice the convinced with its highly developed and ABOUT THE BEUMER GROUP quantity of cement bags in the future sustainable technology and a BEUMER Group is an international while maintaining the same production sophisticated concept, which will enable manufacturer of intralogistics systems capacity. For example: with a total the cement manufacturer to achieve the for conveying, loading, palletizing, tonnage of 150 tonnes per hour, 6,000 required performance in its packaging packaging, sortation, and distribution. bags currently require more than 90 terminal.

With 5,100 employees worldwide, pallets. A pallet has to be handled every Covid-19 presented a particular BEUMER Group has annual sales of 40 seconds. challenge in this project. Due to the about €1.1 billion.

In order to meet this logistical pandemic, it was not possible for BEUMER Group and its group challenge in the four plants, the BEUMER experts to be on site with the companies and sales agencies manufacturer has commissioned customer in person. All concepts were provide their customers with highBEUMER Group to supply 14 high- discussed, debated and agreed online quality system solutions and an performance palletizers. One BEUMER and with the support of the local group extensive customer support network system achieves an output of 5,500 to company in Mexico City. Despite the around the globe and across a wide 6,000 bags per hour. tight supply situation, BEUMER Group range of industries, including bulk Cruz Azul and BEUMER Group have plans to deliver the first five palletizers in materials and piece goods, food/nonhad a trustful and successful partnership the third quarter of 2022. The other food, construction, mail order, post, and for decades. The system provider has nine machines will follow by 2023. airport baggage handling.

high demand and supply shortage = surging prices

BREAKBULK & BAGGING

Bumper year for Brazilian pulp & paper

Fibria’s new pulp mill in Três Lagoas, Mato Grosso do Sul, Brazil.

Patrick Knight complete, Mato Grosso will move to producing 40% of Brazil’ entire production.

Suzano is building a second mill in the state which when complete will produce about 10mt.

A company which has been in Brazil since 2020, the Klingele pulp & paper company has invested US$700,000 in a latest generation printing machine, which make boxes suitable for exporting fruit.

Companies exporting fruit and animal proteins will be buyers of Klingele boxes, of which 30,000 will be sold to Spain this year.

The price of pulp in China has increased by 40% in the past six months. An increase of 40% took the price to $840/tonne.

Analysts had predicted $700/tonne in 2022. The pulp price could go to $1,350/tonne in Europe, and to

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will produce 2.5mt of pulp each year. This mill will start up in early 2028. Aramco already has four plants in Brazil, and has been considering building this new plant since 2007, when it also bid (unsuccessfully) for the Eldorado mill. Aramco has been establishing a forest base in Brazil, having been restricted because of earlier regulations which forbade foreigners owning land in Brazil. Ninety-five per cent of Aramco’s output will be exported, most to Asia & Europe. Seventy per cent of its forest will be ready for cutting by 2024.

Because the average distance between for forest and mill will be only 150km, Aramco’s mill will be very economic.

Brazil produced 22.5mt of pulp in 2021, with Mato Grosso state being responsible for 20% of that. When the Aramco will is

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In terms of pulp and paper, Brazil has had a bumper year, with demand high and supply short, causing prices to rise to record levels. This is contributing to soaring prices. By the end of the decade, Brazil will be making 40mt (million tonnes) of pulp, twice the current amount.

Suzano, the world’s largest pulp producer, is to invest US$70 million in the start up of a new mill, taking the number of mills it owns to about 15. The Eldorado company now produces 8mt a year, but the company has ambitious plans for expansion.

The Fibria company now makes 3.25mt of market pulp, while the Chilean-owned Aramco is to build its first pulp plant in Brazil, at a cost of about $3 billion. The new mill will be in Minas Geras state, and

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BREAKBULK & BAGGING www.drycargomag.com AUGUST 2022

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$1.580/tonne in China for the pulp made by the Suzano company. The soaring price is explained by congestion at ports, coupled with the shortage of containers, all of which has resulted in the amount of pulp being available to consumers available falling by 1.65mt (which is equivalent to a year’s consumption of pulp).

Kimberly Clark is planning to sell its tissue paper assets in Brazil, because of its lack of competitiveness. Possible buyers for the assets are Eldorado, Suzano, Red Dragon and RGE. The production cost of the pulp made by the Kimberly Clark company will be between $1.1. billion & $1.3 billion this year, rather than the $750–900 million which was estimated previously. This illustrates how fast prices have been rising. The price paid by Chinese importers has risen by 40%.

The price of sanitary products reached $1,400 dollars tonne in mid-May. Market shares in the sanitary paper segments, were 13.5% for Diao Paper, 13% for CMPC, 12.7% for Mili, 13% for CMPC, 9% for others.

The general limitation of supply have resulted in prices climbing to $850 tonnes in November 2021, where the more expensive long-fibre pulp is selling for $955 per tonne. Usually the margin between long & short fibre is $120 per tonne, now it is $170.

Suzano has increased the price of the short fibre pulp it makes to $1,520 per tonne. The company shipped $1.5mt in the first quarter of this year, while Klabin has raised prices by 42%. With prices so high all companies are investing, and anticipate continuing to do so. Eldorado made a profit of $200,000 in the first quarter of 2022.

All prices are rising, allowing profits to rise as the year progresses. The price in China has been raised by $30 per tonne in

just a month, taking it to $812 per tonne, (China being Brazil’s leading customer) The price of wood is expected to rise by 10%, while the price of short-fibre pulp is up by $41 per tonne in just a week. One of the reasons for the sharp rise in the price of pulp has been the war in Ukraine, normally an exporter of wood, particularly to Finland, which has been obliged to close several mills. Klabin has concentrated on the export market this year, because the domestic market is weakly priced. Thirty per cent more packaging paper sold this year, while the price of Klabin’s packaging paper has reached $1.113/t, 3% more than it had been a year previously. Klabin’s earning from exports were $365 per tonne Pulp sheets for paper, board and tissue.

62% more than the previous year.

Klabin’s Puma project is complete, which the mill due to start up in early 2023, and the company has raised prices by 42%.

Kimberly Clark is increasing capacity in Brazil, and the company aims to be the leading company in the region. Kimberly Clark is to spend $120 million. Brazil is Kimberley Clark’s leading market in the region, & employs 4,000 staff. Sales have increased by 7%, Kimberly Clark made a profit of $ 5 billion in 2021. The company supplies Chile, Peru, Bolivia & Argentina from Brazil, as well as Mexico & Colombia.

Kimberly Clarke’s plant at Mogi da Cruzes, is to increase output by 4%.

Klabin is to increase the price of the pulp sold to China by $30 per tonne, taking the price to a record $810 per tonne. The price was raised by 45% this year. The price of pulp increased by $100/t in April.

The price of short-fibre pulp has increased by $92 in a month, to reach a record $800 a tonne. The year 2021 was Klabin’s 13th consecutive year of growth, by a company which is the largest packaging materials producer. Profits in 2021 were $420,00 million, 28% greater than in 2020. Work has now been completed on the latest phase of the Puma mill.

Tetrapak is to plant 7,000 hectares of Araucaria pine, most in Parana & Santa Caterina states. The project will remove 70,000 tonnes of carbon from the

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Eucalyptus wood.

mills are complete, the share of pulp made in Mato Grosso state will double from 10% of Brazil’s total to 40%.

Brazil will produce a total of 22.5mt of market pulp in 2022. Another newcomer to Brazil, the Klingele packaging company, is investing $700,000 in a packaging machine, with capacity to make boxes which are suitable for fruit, and other proteins, and will export 30,000 boxes to Spain this year.

The price of the pulp exported to China has increased by 40% in the past six months.

The price of Brazil’s short-fibred pulp has increased to $840 per tonne so far this year, which is much higher than analysts has predicted. In general pulp prices have risen to about $800/t, but there have been exceptional cases where it has risen to $1,500, as instanced by a shipment of Suzano.

Record prices are due to a mixture of factors. Output has fallen for a series of reasons, such as congestion at ports, more mills than usual have halted for maintenance, 2mt of mill capacity is halted at the moment, compared with the normal 700,000 tonnes. Sanctions against Russia, a major exporter of market pulp, have forced the shutdown of mills in Finland, cutting the availability from there. The various difficulties have reduced the supply of pulp on the market by 1.6mt.

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prices will persist.

The record price of market pulp, coupled with shortages of product, severe problems with logistics, a larger than usual number of strikes, and an unusual level of mill shutdowns, is encouraging a new round in investments by the manufacturers of market pulp, of which Brazil is world’s largest producer.

Three of Brazil’s largest producers of market pulp, made from eucalyptus wood, Suzano, Eldorado & Klabin — together with the Chilean owned Aramco, which is to build it’s first mill in Brazil, and a series of smaller mills — will have built a series of new mills by the end of the 2020s.

Together these new mills will add a total of 10mt of market pulp to the existing capacity which is of 22.5mt.

Suzano’s new mill will have capacity to make 2.6mt, while that of Eldorado, will make 1.8mt. Klabin will make 1.5mt, following the start up of its new Puma mill, while newcomer Arauco’s mill, which will start up in 2028, will make 2.8mt. Ninetyfive per cent of Arauco’s production will be sold to Asia, principally China, which is by far Brazil’s largest consumer of market pulp. The distance between Arauco’s forests and the mill is only 150km, which holds production costs to a very competitive level.

When the Arauco, Suzano & Eldorado

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atmosphere, 4,000ha of forest are to be restored in Parara, Santa Caterina & S. Sao Paulo states. Tetrapak is planning to plant in the Amazonian region.

The price of short-fibre pulp reached $955 per tonne, 35% higher than a year previously. The retail price touched $807/t in March 2022. Long fibre pulp price was $ 980 per tonne.

The differential in the price of the two types of pulp was $193 per tonne, compared with the usual $120 per tonne.

One reason for the high prices was that several plants had shut down for maintenance, while there were strikes, and the delay in the start up of several new mills. Normally about 700,000 tonnes of pulp capacity is off line, this year it has been 2mt. The lack of pulp has allowed Suzano to raise prices by $50–70 per tonne. Demand for pulp in Europe and the US is especially high, while a strike at UPM’s mill in Finland has filled the gap. The war in Ukraine plus sanctions against Russia has reduced the supply of pulp.

(Russia is the main supplier of pulp to Finland).

Stocks of pulp in China were critically low, caused by impact of Covid-19 as well as the Ukraine war. There will be 400.000 tonnes deficit this year. Shortages have caused the price to rise from $570 to $630 per tonne. Analysts suggest period of high

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BREAKBULK & BAGGING

Barking up the right tree forest products in focus

Jay Venter

AUGUST 2022

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HAROPA PORT, France’s leading timber gateway

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HAROPA PORT is the leading entry and exit point for timber in France. In 2021, the port complex achieved a traffic figure of almost 310,000 tonnes for import and export. This represents approximately 150,000t of forest products and nearly 155,000t of wood energy (biomass).

The French wood market had an exceptional year in 2021 and 2022 is also looking good. The boom in demand is due to the growing needs of the construction industry and the increased use of wood.

Residential and office buildings are also beginning to be built from wood, a sustainable building material par excellence.

Conventional traffic in forest products is mainly handled by HAROPA PORT in Rouen, particularly at its terminals in Honfleur. Most of this traffic consists of softwoods imported from Scandinavia.

Timber flows are also handled at Le Havre, for import and export, but only in containers.

The wood imported via Honfleur is intended for the manufacture of garden furniture and terraces. Two entities are

very active in the Honfleur wood sector: Norsilk and the ISB group. These two companies have processing units, including an autoclave (*), located near the quays of the Seine. (* Autoclave treatment is used to protect wood from insects or fungi to which it is exposed under certain conditions of use, such as decking

or cladding. This treatment increases the durability of the wood and also makes it possible to obtain different colours.)

A NEW MARITIME LINK WITH BRAZIL Last May, the shipowner Caribbean Line inaugurated a regular line importing exotic wood from Brazil to Honfleur. This new

BREAKBULK & BAGGING

Thanks to its storage capacity and handling equipment, Honfleur Logistique Portuaire (HLP) handles both conventional and bulk traffic, and is therefore perfectly suited to the needs of Caribbean Line and its two tweendecker vessels of 7,750dwt.

WOOD ENERGY IN STRONG DEVELOPMENT

Soon to be erected on the banks of the Seine, in the 13th arrondissement of Paris, the Wood Up tower, for which work will start in July, is already an emblem of wooden construction: this 50m-high tower offering 107 top-of-the-range homes will be one of the tallest wooden towers in the world. In order to transport the raw material in line with their desire to reduce the project’s carbon footprint, Poulingue and its partners have opted for the river route.

The project involves three pieces of equipment set up over the last few months in partnership with HAROPA PORT, to enable the transport of oversized materials to the capital: v FlexiMalle FM40’ containers: the FlexiMalle is a new generation container. With a weight of only 2.1 tonnes (about half that of similar

HAROPA PORT’s wood energy segment is also experiencing strong development.

HAROPA PORT has recorded a total of 120,000 in imports and 31,000 in exports for the year 2021. This represents an increase of +16% compared to 2020, when a total of 116,000t was recorded. Ninety per cent of this will be wood pellets, as well as chips and firewood. In Rouen, the Surveyfert company is very well positioned for export. For imports, DockSeine and Sea Invest handle most of the flows. The operator Sea Invest is in the process of building a new quayside hangar at its Grand-Couronne terminal. The 9,000m2 facility is intended for the storage of, among other things, wood energy. The main players in the sector are TotalEnergies, Engie and CM Biomasse.

Russia’s invasion of Ukraine is having an

TIMBER FOR THE EMBLEMATIC WOOD UP TOWER TO BE TRANSPORTED BY RIVER IN THE MIDDLE OF PARIS

transport units), a transport capacity of 7 tonnes and a flexible structure (folding and removable walls), it offers an innovative solution for the inland waterway transport of large volumes.

The flexibility offered by this innovative transport unit and its compatibility with the specificities of multimodal transport confirm its economic interest for the development of river logistics, especially in urban areas. After the first experiment, in February 2021, the Sogestran group had indicated that it wanted to manufacture a dozen FlexiMalle units for industrial users of the waterways. v Flat Rack 40’ container: the Flat Rack container is a robust, collapsible container without fixed side walls or a roof. It is particularly suitable for bulky goods or goods that need to be loaded from the top or the sides. In January 2022, GA Smart Building, VNF Cargo, Sogestran Group, with the assistance of HAROPA PORT, experimented with the first transport of flat rack containers. v Self-unloading pontoon boat ZULU: Blue Line Logistics, a subsidiary of the French shipping company Sogestran, presented ZULU, a pallet shuttle barge for urban logistics, in February 2020.

FlexiMalle containers will be transhipped onto this self-unloading pontoon boat at the quay and unloaded with the help of straps onto a truck that will travel the last few kilometres.

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impact on the forest products industry.

Imports from Belarus, Russia and Ukraine have been halted by the conflict. The consequences are significant, particularly for biomass. The European Union has a production of 20mt (million tonnes) per year for a consumption of 30mt. A shortage of wood pellets will certainly occur, with Europe having to find 10mt of pellets from other producing countries.

European countries will have to find new sources of supply such as Canada or Brazil.

Prices are expected to rise due to higher transportation costs.

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service, which includes a monthly MultiPurpose Vessel (MPV) call, completes a range of services already well-established in the port and allows timber players a direct connection with Brazil, one of the main exporting countries for exotic wood.

Nearly 1,000m³ of pre-slabbed timber was unloaded in May during the first call of the bulk carrier Herbeira. Thanks to its storage capacity and handling equipment, Honfleur Logistique Portuaire (HLP) handles both conventional and bulk traffic, and is therefore perfectly suited to the needs of Caribbean Line and its two tweendecker vessels of 7,750dwt. The establishment of this new line reinforces the attractiveness and dynamism of the Honfleur terminals.

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Conventional general cargo handling at J. MÜLLER

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J. MÜLLER’s general cargo terminal,Niedersachsenkai.

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Since its founding more than 200 years ago in 1821, J. MÜLLER has changed continuously, adapting and aligning itself to the new conditions and challenges of the increasingly international trade in goods.

Based on the German North Sea coast, J. MÜLLER is an expert in conventional general cargo handling. The ultra-modern heavy-load terminal Niedersachsenkai with a quay length of 450m and excellent rail connections is just north of the seaport of Brake. Iron and steel products of all types are handled here on an area of just under 160,000 square metres.

The handling capacity for general cargo will increase at the Brake location, especially for forestry products such as wood and pulp as well as iron and steel.

From July, G2 Ocean’s USA service on the Weser started being handled at the seaport of Brake. Approximately 100 employees have been hired to handle the growing volume of cargo. A specially developed trainee programme offers career changers the opportunity to qualify as port logistics specialists [m/f/d] in six months.

Almost 3 million cubic metres of wood will be exported from the Weser this year, and about 1.5mt (million tonnes) of pulp will be imported. Co-operation in Brake, especially with the Ultrabulk Copenhagen shipping company, plays an important role in this.

J. MÜLLER has invested enormously in recent years. In May 2020, two new multifunctional warehouses were built at Niedersachsenkai; the complete crane

J. MÜLLER’s terminal at the seaport of Brake. operation was taken over last year from the state port operator Niedersachsen Ports [NPorts]; a coffee silo with a capacity of 9,000 tonnes is currently being built at the Bremen site; and an additional asphalted 65,000m2 will be completed at Niedersachsenkai for the storage of general cargo will be completed at the end of August.

STORAGE CAPACITY GENERAL CARGO SEAPORT BRAKE v Warehouse: 200,000m² v Open-air warehouse: 300,000m²

ABOUT J. MÜLLER The J. MÜLLER Group specializes in the operation of seaport terminals and

associated port and shipping-related services. The regional focus is northern Germany, especially the Lower Weser region with its own seaport terminal operations in Brake and Bremen. v Handling and chartering performance 2021: 6.2 million tonnes of general and bulk cargoes v Annual turnover in 2021: approximately €110 million.

The medium-sized family business in its sixth generation was founded in Brake in 1821. The entire operative business of the group of companies is carried out by J.MÜLLER Weser GmbH & Co KG. Currently, 537 people are employed at its sites in Brake and Bremen, 49 of whom are trainees (as of 1.07.2022).

AUGUST 2022

and highway access, as well as over 500,000 square feet of indoor warehouse and outdoor storage space, which can be configured to a wide variety of industrial, cargo handling and ancillary operations.

In the near term, rail users will have access to the site’s transload, integrated warehousing, and railcar storage capacity.

Looking ahead, the site will include marinerail connections, a reactivated gantry crane and rail scale as part of a tailored supply chain solution. “Our approach is to work with users to reactivate these assets in a customized way that meets the needs of contemporary users,” said Veldman.

“This facility is ideal for forest products,” noted HOPA’s Jeremy Dunn.

“Rail transload capacity, highway access and proximity to market make for an exceptionally strong offering, and we’re seeing interest building from users.”

Interest is also building in the construction materials, manufacturing and bulk sectors.

“Room to grow and complete multimodal connections are value we are providing to users of the Thorold Multimodal Hub,” said Dunn, while the addition of new supply chain options will provide modal choice and helping to alleviate pressure on regional highways.

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Bioveld Canada and HOPA Ports have signed an industrial switch agreement with Canadian rail services provider, GIO Railways Corporation, to enable the use of existing CN Rail infrastructure at the Thorold Multimodal Hub to transload cargo. A switching agreement allows a short line operator (GIO Rail) to use the track owned by CN to provide first- and last-mile delivery and transload services.

New rail capabilities are attracting users who are looking to move goods through Southern Ontario, or into the Northeastern United States.

“Integrating and expanding the rail service offering to our tenants and customers has always been part of HOPA’s vision for the Thorold Multimodal Hub,” said Jeremy Dunn. “The fact that we have rail connecting indoor and outdoor transloading space and rail car storage right beside the Welland Canal are all part of what makes the Hub so unique.” This agreement will improve connections and modal choice for customers, and expand trade flows through the Thorold Hub. The Thorold Multimodal Hub is a 200+ acre multimodal industrial complex in Niagara, adjacent to the Welland Canal.

Unique to Niagara, it features marine, rail

BREAKBULK & BAGGING

Multimodal hub in Ontario’s Niagara Region offers rail transload and warehousing to forest sector customers

DCi 137

BREAKBULK & BAGGING

Rauanheimo offers port operations in all major Finnish ports Pulp handling from train to warehouse .

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As a major Finnish port operator, Rauanheimo operates in all deep-water ports in Finland and is the largest operator in dry bulk handling. Some of the building blocks of its business operations are long experience, tailor-made logistics solutions for each customer and strong investment capacity. Rauanheimo is able to quickly adapt and invest according to its customers needs.

“In logistics, efficiency is at the core of everything,” says Anna Långbacka, Marketing & Internal Communications Manager, Rauanheimo, “and therefore our

business concept is to customize costefficient solutions for our customers. Our aim is to always create efficient supply chains from an overall perspective. This is possible thanks to our wide selection of services.

By combining stevedoring services with sea and land transports, as well as added value services, we offer efficient logistics chains that improve our customers’ competitiveness.”

The company’s operations are based on a turnkey service concept where it can handle the entire logistics chain. Långbacka adds: “Our services include, among others,

Pulp handling, vessel loading, at the port of Vuosaari.

stevedoring, forwarding, transports from and to the ports, container operations, added-value services, warehousing, and ship agency services. We offer total logistics services for all forest industry products in several ports and have the knowledge, machinery and experienced manpower for it.”

The focus of modern stevedoring is on optimizing flows of goods from an overall perspective. Therefore, Rauanheimo has expanded its port storage capacity and invested in modern equipment, making handling more cost-efficient. “We have some of Finland’s largest cranes in use and can therefore offer even more effective loading and unloading. All our cranes are mobile, which allows us to modify our machinery all according to our customers needs. We have lately invested in several hybrid cranes. We develop and invest in our machinery all according to our customers’ needs and sustainability demands.” says Långbacka.

COMPLETE LOGISTICS SERVICES FOR ALL AUGUST 2022

FOREST INDUSTRY PRODUCTS

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Rauanheimo’s stevedoring services are always customized to its customer’s unique needs and its experienced stevedores make sure all goods are efficiently and safely handled. The company highly prioritizes safety and continuously work to

BREAKBULK & BAGGING

improve both quality as well as its occupational health and safety.

Långbacka explains “Over the past few years, we have expanded our container handling into several ports. We unload and load containers, as well as stuff and strip the goods. In addition, we offer large intermediate storage spaces and container depots for smooth and efficient handling.”

Rauanheimo’s ship agency department acts as a representative of the shipping company ensuring the vessels a smooth and efficient port call. It offers complete and reliable agency services for all types of vessels in the ports it operates, as well as some other ports.

Rauanheimo’s experienced professionals are at vessels’ disposal 24/7. Its ship agents know the surrounding areas well and have close contacts to pilots, customs, port authorities and other partners.

Rauanheimo’s service concept includes all the documents, notifications and other services that shipping companies, vessels and the crew need.

By buying forwarding services from Rauanheimo in an overall package deal, its customers are free to take their minds of the transport and concentrate on their core businesses. The company takes the overall responsibility for the logistical chain and transport its customers’ goods door to door. The forwarding is customized as an overall package according to every specific need and can comprise everything from road and rail transports to loading and unloading in port. In addition, all documents and paperwork needed for the forwarding, such as customs documents

TOS information system. and consignment notes, are included.

“Our way of working allows us to take care of our customers’ goods from the moment they leave the factory until they reach their end destination anywhere in the world.” adds Långbacka. “We collaborate both with our sister companies in KWH Logistics and our vast network of experienced partners in the logistics industry.

Therefore, we can offer competitive overall solutions that follow set timetables. We have also expanded our storage capacity in the ports where we operate, making the transport chains even more flexible than before.

“We are at your service, both for transports within Finland, imports and exports, and for transit traffic through Finland. In forwarding, we make use of our entire wide selection of services, creating efficient overall solutions. In addition to regular transports, we are also at your service for different types of project cargo

and have the capacity to handle large and heavy cargo.”

VALUES FOR A BETTER FUTURE

www.drycargomag.com AUGUST 2022

Rauanheimo values its knowledge, transparency, safety and integrity. For its part, the company is committed to developing greener logistics. Rauanheimo is part of the business group KWH Logistics that is involved in a significant project where existing heavy machinery is being converted from diesel to electric. In addition to propulsion solutions this is also about resource efficiency. KWH Logistics is among the first in line participating in a development project where they convert the existing equipment from diesel to electric. The first conversions have already been made and tests at factory areas will be conducted during the summer 2022. The goal is to get results about the performance and benefits of the machinery compared to diesel machinery. The benefits are not limited to only emissions and resource efficiency; Rauanheimo Sawn timber vessel loading. believes that reducing noise and vibration will also have a significant occupational safety effect.

At Rauanheimo the company has its own tailor-made information system that can handle the logistics information all the way from the customer to the production plant. Rauanheimo and its customers can see where the cargo is moving.

“We aim to be an innovative leader and pioneer in the logistics industry and the customers first choice. We invest in continuous development of our staff and improve our customers competitiveness by providing clever total logistics solutions,” says Rauanheimo’s CEO, Tero Kosonen.

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INDEX OF ADVERTISERS Company

Page

Company

Page

Advisian

12

Morska Agencja Gdynia Sp. z o.o.

29

Agrico Sales, Inc.

65

MRS Greifer GmbH

83

Alex Stewart International Corporation Ltd

32

Negrini Srl

89

Becancour Waterfront Industrial Park

108

Neuero Industrietechnik GmbH

Inside Back Cover

BEUMER Group GmbH & Co KG

23

ORTS GmbH Maschinenfabrik

Buttimer Engineering

53

PEINER SMAG Lifting Technologies GmbH

62

Port Milwaukee

95

Port of Dunkerque

27

Cleveland Cascades Ltd

41, Back Cover

CRS – Container Rotation Systems Pty Ltd

3

Front Cover, 91

Cygnus Instruments Limited

21

Port of Esbjerg

30

DCL, Incorporated

14

RAM SMAG Lifting Technologies (UK) Ltd

77

DELLNER BUBENZER Germany GmbH

63

Real Time Instruments

37

RULMECA HOLDING S.P.A.

50 39

Doornekamp Construction Ltd. / Picton Terminals

105

E-Crane Worldwide

47

SCHADE Lagertechnik GmbH (AUMUND Group)

FLSmidth

43

Sept-Îles Port Authority

Hagglunds AB

74

Shi.E.L.D. Services srl

Hudig & Veder BV

19

SIBRE - Siegerland Bremsen GmbH

IHI Transport Machinery Co., Ltd. (IUK)

20

St Lawrence Seaway Management Corp

93

Italgru S.r.l.

44

Telestack Limited

69

J & B Grijpers b.v.

79

Terex Deutschland GmbH

71

Toledo-Lucas County Port Authority

97

Liebherr-Hydraulikbagger GmbH

Inside Front Cover

107 25 7

81

Van Aalst Bulk Handling BV

60

MGB & Company

59

Verstegen Grijpers BV

85

Middle River Marine, LLC

99

Vigan

66

DCi

Mack Manufacturing Inc

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