WPD - July/August 2022 issue

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Thriving despite merger setback

WORLD PORT DEVELOPMENT

International Journal for Port Management

JULY/AUGUST 2022

In this issue: Indian Ports Port Construction Australian Ports

Finance Port Infrastructure

Singapore Dangerous Goods Regulations Scottish Ports Shuttle Carriers Fender Systems

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contents

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16 Australian Ports invest and expand Australia is a key player in international shipping, with 98%of the nation’s trade volume moving by sea.

Claire Instone reports...

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Viewpoint

News from around the globe

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The net-zero opportunity for ports in Scotland

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Untying supply chains knots

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Changing dangerous goods regulations

Ports are quite literally at the frontier of Scotland’s trading arrangements.

Gordon Feller reports...

Gordon Feller explains the benefits and drawbacks of using P3s to finance port infrastructure...

Peregrine Storrs-Fox, Risk Management Director, TT Club discusses the importance of dangerous goods regulations...

PSA spearhead sustainable trade

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Claire Instone takes a look at how PSA are playing an active role in contributing to sustainability whilst driving innovation...

visit our website -- www.worldportdevelopment.com

23 Bright future for Indian Ports

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Thriving after merger setback

34 Port construction round-up

The Indian Brand Equity Foundation has released a report on the Indian port industry. WPD reports...

Kalmar and Konecranes maintain their position as competitors in the industry.

WPD reports...

Claire Instone reports on the latest port construction projects...

39 A whole system approach to fender performance Ports must find ways to upgrade and future-proof their infrastructure...

July/August 2022 World Port Development

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Published by:

Consulting Editor: Sheila Moloney

sheila@worldportdevelopment.com

Editor: Claire Instone

claire@worldportdevelopment.com

Editorial Consultants: Gordon Feller

gordon@worldportdevelopment.com

Eugene Gerden

info@worldportdevelopment.com

Commercial Director: Peter van Schie

peter@worldportdevelopment.com

Business Development: Selina Palmer

info@worldportdevelopment.com

Production Manager: Helen White

info@worldportdevelopment.com

Volume 22 Number 7/8 Claims for non receipt of issues must be made within 4 months of publication of the issue or they will not be honoured without charge.

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Every care is taken in compiling the contents of the magazine, but the publishers assume no responsibility in the effect arising therefrom.

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Future proofing: driving innovation sustainably

‘With larger vessels, increased cargo volume, improved safety awareness, and tougher environmental regulations, today’s ports face significant challenges. To accommodate regional compliances and the rapidly changing nature of the shipping industry, ports must find ways to upgrade and future-proof their infrastructure, doing so safely, efficiently, cost-effectively, and sustainably.’ This opening statement - taken from this edition’s feature contributed by Trelleborg on fender performance (page 39) - perfectly sums up how ports must constantly tread a fine line between driving innovation whilst contributing to sustainability.

One particular organisation’s work in this domain is highlighted in this month’s issue as I report on how global port group PSA is striving to ensure it meets the highest standards across the board. To read more about how it is spearheading sustainable trade, including details of Singapore’s first Energy Storage System, turn to page 18.

Moreover, our regular port construction round-up features details not only on plans for new ports and terminals but news of investments being made in order to see old structures and facilities revamped. In addition, I bring readers an overview of the major projects taking place at the ports of Brisbane, Melbourne and Hedland for WPD’s annual Australian regional survey. Beyond, the ‘land down under’, our July/August publication also proffers up a report on the Indian port industry as well as an article on the net-zero opportunity for ports in Scotland. Turn to pages 23, and 21, respectively.

Of course, underpinning all the innovation, green initiatives and new construction is a huge level of investment. On page 28, Gordon Feller focuses on the US explaining the benefits and drawbacks of using P3s to finance port infrastructure.

Naturally, once ports are financed, built, made sustainable and are operating at peak performance, there is always the on-going issue of safety. Covering this topic, WPD welcomes editorial by Peregrine Storrs-Fox, Risk Management Director, TT Club, on the importance of dangerous goods regulations.

Enjoy reading this issue of World Port Development!

Claire Instone Editor

Kalmar received an order from the Port of Virginia for their Hybrid Shuttle Carriers for the Virginia International Gateway. Turn to page 25 for the full story.

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Freight volumes continue to increase at the Port of Gothenburg The Port of Gothenburg is growing in terms of volumes and enhancing its position as the guarantor of Swedish industry’s access to the world at large this is reflected in the port’s reported volumes for the first half of 2022. And despite warnings of an imminent recession, Elvir Dzanic, CEO of the Gothenburg Port Authority, believes there will be continued growth for the industrial sector into next year. The vast majority of Swedish foreign trade takes place by sea. When it comes to trade with countries outside Europe, the most common method is to transport freight on container ships.

At the Port of Gothenburg, which is the largest port in Scandinavia, 433,000 TEUs were handled during the first half of 2022. This is a 5% increase compared with the same period in 2021.The port is also increasing its market share in Sweden. The facility currently accounts for 52% of the Swedish container market, compared with 48% at the beginning of last year. “As a port, we’ve shown that we can provide Swedish industry with efficient service, despite the fact that the global logistics system continues to experience successive forms of disruption, causing problems in many ports.

So it’s logical that Gothenburg is increasingly becoming the port of choice,” says Dzanic. The Railport Scandinavia railway system links the Port of Gothenburg with over 30 inland terminals at locations all over Sweden, and is one strong contributory factor behind the increase in container volumes in the Port. New locations were added to the system during the first half of 2022, while existing traffic has seen additional growth. All in all, container transport activities by rail to and from the port have increased by 10% compared with the same period last year.

Hamburg’s first start-up for digitalisation achieves results DAKOSY, Hamburg’s original start-up for digitalisation, is celebrating its 40th anniversary.

Driven by the port industry, DAKOSY was founded in 1982 with the aim of staying ahead of competition from other seaports as a “faster port.” With its numerous IT platforms, DAKOSY is now an established digitaliser for neutral logistics solutions far beyond the city limits of the Hanseatic City of Hamburg.

The widespread acceptance in the industry is reflected by the significant number of users.

In the port of Hamburg, more than 2,500 enterprises from port operations, logistics, manufacturing and trade as well as many public authorities are connected to DAKOSY’s Port Community System. Another important pillar is contributed by smart solutions in the areas of customs and forwarding, with more than 2,000 freight forwarders, industry and trading companies in Europe who work with these solutions daily. “All applications are based on the principle of recording transport chain data only once, and then making it available at the earliest possible time - an idea that has been fundamental to us since 1982,” explained board member Dieter Spark.

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Environmental report released for POLB dredging The Port of Long Beach has released a final report examining the environmental impacts associated with deepening existing navigation channels to enhance safety, reliability and efficiency for visiting cargo vessels.

Prepared jointly with the US Army Corps of Engineers, it assesses the costs, benefits and environmental impacts of the project alternatives that include dredging to deepen channels, basins, berths and other areas in the port to facilitate commerce.

Port Esbjerg orders second LHM 800 and awaits delivery of an LHM 600 The Port of Esbjerg is a long-standing partner of Liebherr and recently ordered a second LHM 800. The new crane is already the seventh Liebherr mobile harbour crane to be used at Denmark’s largest port. Next-generation offshore wind turbines will be lifted with the new heavy-duty crane. Liebherr will deliver a further crane of the type LHM 600 to Port Esbjerg before the end of the year. Port Esbjerg is the leading port in Europe when it comes to handling and shipping wind energy components. The port played a key role in the rise of Denmark’s offshore wind industry - 80% of the offshore wind capacity installed in Europe was shipped out from the Port of Esbjerg.

Their record for breakbulk is notable, as the port handles more than 500,000 tonnes of major wind turbine components each year. Therefore, it is crucial that the port is equipped with state-of-the-art equipment.

The first LHM 800 for Port Esbjerg was delivered back in 2019.

The upcoming delivery in 2023 of the recently ordered second LHM 800 marks the seventh Liebherr MHC purchased by Esbjerg.

The new addition will make the facility the third port in the world to have two LHM 800 cranes in its fleet. With the second LHM 800, Esbjerg will be able to carry out tandem lifts of up to 616 tonnes.

This means that components of the next generation of offshore wind turbines can be handled. Dennis Jul Pedersen, CEO at Port Esbjerg, says: “Our competency lies in breakbulk and in having the capacity for tandem lifts above 600 tonnes, which is necessary not only in the on- and offshore wind market but also in supporting production in the hinterland.”

Liebherr and Port Esbjerg have enjoyed a partnership for many years. The first Liebherr MHC was an LHM 1080, bought by the port in 1994.

Together with Esbjerg, Liebherr developed its unique Sycratronic tandem-lift assistance system.

The LHM 800 is the largest and most powerful MHC in the Liebherr LHM portfolio. The machine meets the ever-increasing demand for mobile heavy-duty cranes in the maritime sector.

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Market Intelligence Africa

* Cavotec will support the decarbonisation at APM Terminals MedPort Tangier by providing its next generation vacuum mooring system MoorMaster NxG.The automated trans-shipment terminal is one of the most technologically advanced, safest, and efficient terminals in the world. As part of its two-phase expansion between 2021 and 2025, the Tangier port will install Cavotec’s innovative auto-mooring system along the extended section of the quay.

This will reduce the time taken by vessels to moor and release, thus improving operational efficiency and safety and considerably reducing harmful emissions. The system reduces ship emissions during berthing by more than 90%.

Once ships are moored, the MoorMaster’s active hydraulics significantly reduce vessel motion, thereby positively impacting the terminal’s already exceptional crane moves per hour. APM Terminals to achieving a 70% reduction in absolute emissions by 2030 and net-zero emissions by 2040 for operationally controlled terminals.

Europe

* Home, garden and leisure products retailer The Range is to occupy a high quality, sustainable logistics unit of approaching 1.2m sq. ft. on the UK’s Freeport East Gateway 14 site.

Conditional contracts have been exchanged to develop the distribution unit on a freehold turnkey basis with Jaynic, the development partner for Gateway 14 Ltd which is wholly owned by Freeport East partner Mid Suffolk District Council. Commenting on the latest milestone in Freeport East’s development, George Kieffer, Acting Chairman, stated: “The unique location of Freeport East, close to some of the world’s major international shipping routes, provides a range of benefits to businesses which locate here.

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Freeport East is focused upon value-added logistics, advanced manufacturing and the clean energy sectors and we are delighted to welcome The Range as the first of what will be many businesses to commit to the Freeport.” * The UK Government has launched a new maritime strategy focused on enhanced seabed mapping and tackling security threats.

Revealing the five-year plan, Transport Secretary Grant Shapps explained the guiding principles for the UK government’s approach to managing threats and risks at home and around the world, including leveraging the UK’s world-leading seabed mapping community and tackling illegal fishing and polluting activities at sea. The new initiative redefines maritime security as upholding laws, regulations and norms to deliver a free, fair and open maritime domain. With this approach, the government said it will recognise any illegal, unreported and unregulated (IUU) fishing and environmental damage to its seas as a maritime security concern. The government also established the UK Centre for Seabed Mapping (UK CSM), which will utilise data collection and sharing for the UK’s maritime industry. The UK CSM has also been registered as a UK government voluntary commitment to the UN Decade of Ocean Science for Sustainable Development. * Hamburger Hafen und Logistik AG (HHLA) recorded a positive performance in revenue and earnings in the first half of this year.

The company benefited in particular from a further rise in storage fees in the container segment resulting from much longer dwell times for containers at HHLA’s facilities, as well as from further increases in the rail share of HHLA’s total intermodal transportation.

HHLA Group revenue rose by 9.9% to €779.5 million (previous year: €709.2m).

The Group operating result (EBIT) climbed by

11.9% to €101.3 million (previous year: € 90.5).

The EBIT margin amounted to 13.% (previous year: 12.8%). Profit after tax and minority interests rose year-on-year by 13.1% to €43.9 million (previous year: €38.8 million).

North America

* The Port of Virginia continues processing record-setting amounts of cargo having handled nearly 318,000 TEUs in July and in doing so making it the most productive July in the port’s history. July’s TEU total was ahead of the same month last year by more than 24,500 units, or 8.4%. Additionally, July was the fourth consecutive month of TEU volumes exceeding 317,000 units. The combined volume of April, May, June and July is 1.3 million TEUs, resulting in the busiest four-month stretch in port history. Comparatively, the total TEU volume for the same period in 2021 was 1.17 million TEUs, a difference of more than 10%.

Stephen Edwards, CEO of the Virginia Port Authority, is expecting business to remain strong during the peak retail months leading up to the holiday season. This, he said, will position the port to have its best calendar year performance on record. * Port Everglades exceeded its record May and June cargo volumes thanks to new ocean shipping services from India,Turkey and Greece.

“Unlike the downturn that we typically experience at the end of our busy melon season, we had a spike in May and June because of the new Mediterranean Shipping Company services from South Asia and the Mediterranean,” said CEO and Director Jonathan Daniels.

“We are on track to shatter our annual record from 2018.” In May 2022, Port Everglades recorded 97,502 TEUs, up 4% over the port’s former record set in May 2015. Containerised cargo volumes jumped 5% in June 2022 over the record set in June 2018, with 94,106 TEUs.

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port & terminal * Fifteen ship-to-shore cranes now stand 155 feet above the wharf deck at Wando Welch Terminal, efficiently working mega container ships at the Port of Charleston. The fifteenth and final crane was recently moved into position along the waterfront. With five cranes to a berth, Wando Welch Terminal is now even more capable of efficiently working three 14,000-TEU vessels simultaneously.

The new ship-to-shore cranes have 155 feet of lift height and the ability to reach out over 22 containers to work the biggest ships calling the East Coast. The cranes are a key part of SC Ports’ USD500 million investment to modernise Wando Welch Terminal.The multi-year project enhanced capacity and operations with new container-handling equipment, a modernised container yard and refrigerated cargo yard, improved traffic patterns and IT systems, a strengthened wharf, and an on-terminal transload facility for mega retailers. * May 2022 was a historic month at the Port of New York and New Jersey as it became the second busiest month of cargo activity in its history. Total volume increased by 6.1% in May, totalling 845,305 TEUs compared to 796,693 TEUs in May 2021.This number brings the port’s yearly total to 4,034,683 TEUs. Imports also rose by 7.6% in May, totalling 426,423 TEUs versus 396,417 TEUs the previous year. From January through May 2022, imported loads at the Port of New York and New Jersey reached 2,068,369 TEUs, an 11.5% increase over the 1,854,409 TEUs recorded in the same period of 2021. * The Port of Long Beach had its busiest July on record despite a cooldown in consumer spending. Dockworkers and operators moved 785,843 TEUs in July, a slim 0.13% increase from the previous record set in July 2021.

Imports declined 1.8% to 376,175 TEUs, while exports were down 0.5% to 109,411 TEUs. Empty containers moved through the Port were up 2.8% to 300,257 TEUs. “We are continuing to seek solutions to improve efficiency as a record-breaking number of containers move through the Port,” said Executive Director Mario Cordero. “We hope to relieve some of the stress points by continuing to support a transition of the entire supply chain to 24/7 operations and ensuring our industry partners can track containers with our new Supply Chain Information Highway data solution.” * Alabama Port Authority has announced its busiest month ever for containerised cargo, as the Port of Mobile keeps driving its steadfast growth. In July 2022, operations across terminals broke the 50,000 TEU mark

for the first time since 2008. The figure accounts for a 184.7% year-on-year increase in intermodal cargo, and a 35.8% surge for dry and refrigerated cargo. The news comes after the port’s impressive June results, when it reported a total of 263,562 TEUs for the year so far handled at the Port of Mobile. * SA Recycling terminal in the Port of Long Beach has topped a total of 2.5 million tonnes in exports of iron ore since October 2020, showing strong growth in the shipment of a resource once added to diversify the terminal’s business beyond the processing and export of recyclable metal. The company has operated a marine terminal at the Port of Long Beach’s Pier T on Terminal Island since 1998. Starting in 2013, it has received iron ore mined in the western United States via railroad. The material is loaded onto bulk cargo ships that sail to ports in East Asia. “I want to congratulate SA Recycling on this achievement,” said Mayor Robert Garcia. “Thank you to all the workers across our region who have made this milestone possible.” * The Georgia Ports Authority kicked off its new fiscal year with the fastest start ever, handling 530,800 TEUs in July, an increase of 18%. Since January, GPA has moved 3.4 million TEUs, up 231,400 or 7% over its performance during the same period in 2021 - a record year in which GPA handled 5.6 million TEUs. Annualised, the July volumes have the Port of Savannah moving containers at a rate of more than 6 million TEUs per year.

“The Port of Savannah has clearly become a preferred East Coast gateway for shippers globally, including cargo diverted from the US West Coast,” said GPA Executive Director Griff Lynch. “Our expedited infrastructure projects, extended gate hours and the outstanding work of our employees and partners are key to our ability to move cargo at a record pace.”

India

* DP World and India’s National Investment and Infrastructure Fund (NIIF) have announced the broadening of their existing partnership, with NIIF Master Fund investing primary capital of INR 22.5 billion (approximately USD300 million) for a shareholding of approximately 22.5% in Hindustan Ports Private Limited (HPPL), the wholly owned subsidiary of DP World. With this transaction, which is also the Master Fund’s single largest investment, NIIF’s investment under this partnership will reach around USD500 million.

The transaction is subject to customary completion conditions and is expected to

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close by Q1 CY2023. This investment from NIIF Master Fund extends the existing DPW and NIIF partnership, formed through the creation of Hindustan Infralog Private Limited (HIPL) in 2018. Since its inception, HIPL has made substantial investments in rail logistics, multi-modal logistics parks, container freight stations, economic zones, cold chain infrastructure and contract logistics to create a market leading integrated logistics platform. * Transport workers at three Indian ports in Chennai recently entered an indefinite strike, causing cargo disruptions across the network as port activities came to a stop. As of 7 July, labour action has halted most import-export activities at the Adani Kattupalli, Chennai, and Kamarajar ports while some 8,000 containers were reportedly stranded. The strike was declared after talks between owners of container-carrying trailers and trade bodies failed to result in an agreement. The protesters demanded an 80% increase in fees due to rising fuel costs; over 4,000 vehicles participated in the action. The Trailer Owners’ Association reported that only one association, the Customs House Agents, had agreed to increase rates.

Middle East

* NYK Line and UNI-X NCT Corporation (UNI-X) have begun operation of four state-of-the-art transfer cranes developed by Mitsui E & S Machinery Co., Ltd. The four machines are based at the NYK Tokyo Container Terminal (NYTT) and each have a downsized diesel engine that reduces CO2 emissions and diesel exhaust. Moreover, the engines can be replaced with a hydrogen fuel cell power supply in the future. This move is in line with the carbon neutral port concept being promoted by Japan’s Ministry of Land, Infrastructure, Transport and Tourism to reduce greenhouse gas (GHG) emissions at ports to zero through the advancement of port functions.

Asia

* ICTSI H1 2022 net income is up 50% Enrique K. Razon, Jr., ICTSI Chairman and President said: “We have delivered another period of strong operational and financial results across our global portfolio with throughput growth of five percent. Revenues grew by 20% to USD1.06 billion and EBITDA increased by 26% to USD672.1 million driven by volume growth, strong contribution from new terminals and an improvement in trade activities as economies recover from the impact of lockdown restrictions and the COVID-19 pandemic.”

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1. Kongsberg Digital (KDI) and Maritime Industry Authority in the Philippines (MARINA) have signed a memorandum of understanding (MOU) representing a significant milestone for innovation and transformation in maritime training in the Philippines. 2. Ports of Stockholm and CMB.TECH are joining forces in a unique hydrogen collaboration at Stockholm Norvik Port.

The goal is for Stockholm Norvik Port to be Sweden’s most climate-smart and sustainable port. 3. The Port of Long Beach recently welcomed Pasha Hawaii’s MV George III, the first container ship powered by liquefied natural gas to refuel on the West Coast.

The ship’s LNG-powered engines are dramatically

cleaner than those of a traditional cargo vessel.

4. The Maritime and Port Authority of Singapore and the Port of Rotterdam have signed a memorandum of understanding to establish the world’s longest Green and Digital Corridor to enable low and zero carbon shipping.

5. JAXPORT has promoted experienced infrastructure development leader James Bennett, P.E., to the role of Chief Operating Officer. 6. In other news, JAXPORT’s Talleyrand Marine Terminal facilitated the return of a historic, made-in-Florida World War II tug boat to the US. The tug, Tiger ST 479, recently arrived at JAXPORT from Sweden aboard the Spliethoff multi-purpose vessel Snoekgracht.

SPOTTED SOMETHING OF INTEREST?

If you have seen something unusual or something of interest for inclusion in this column make a photograph of it and send it by email to: yourpicture@worldportdevelopment.com

Cavotec’s latest MoorMaster system enters service in NZ Cavotec’s MoorMaster automated vacuum mooring technology marked a major milestone recently with the official opening of the new 6 Wharf at Napier Port in New Zealand, the country’s fourth largest port by container handling volume. According to the port, the 6 Wharf project will allow the port to handle more and larger ships, and improve operational performance.

The berth’s MoorMaster system recently completed Site Acceptance Testing and is now fully operational.

The system has already been in use at the wharf, for example mooring the 294-meter-long CMA CGM Marlin.Avoiding the need for hazardous mooring lines altogether, MoorMaster uses remote controlled automated vacuum pads to moor and release vessels in seconds, and hold vessels in place, automatically compensating for swell and tidal effects. The system dramatically improves safety and operational efficiency, optimises the ship-toshore interface, and reduces emissions due to reduced use of tugs and ships’ engines.

NWSA YTD TEU volumes down 4% Reduced vessel calls in June due to congestion in other ports and ongoing service suspensions negatively impacted NWSA volumes. In addition, full imports in June 2021 were above average, making year-over-year comparisons unfavourable. June volumes decreased 10.3% to 309,123 TEUs, with full imports declining 15.4% and full exports declining 8.8% year-over-year. Year-to-date import volumes are tracking ahead of pre-Covid levels, while laden exports continue to struggle from reduced service capacity. Year-to-date volumes declined 4% to 1,806,732 TEUs, with full imports and exports declining 6.9% and 24.2%, respectively.

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Savannah stays on pace at nearly 5.8m TEUs in FY2022 Fiscal Year 2022 was another record-breaker for the Georgia Ports Authority, with container volumes growing 8% for a total of 5.76 million TEUs. The Port of Savannah ended the year with a record June, handling 494,107 TEUs in total cargo, up 10.6% or 47,300 TEUs compared to the same month last year. “As the hub in a global network of road, rail and ocean carrier connections, our ports link Georgia businesses to international trade lanes and open doors to prosperity for our state and nation,” said Georgia Gov. Brian Kemp. “The Georgia Ports Authority and its partners in the logistics industry are powerful drivers for local economies across the Peach State, from small communities to our thriving urban centers.”

In addition to organic growth among its port customers, Savannah trade has also been boosted by West Coast labour talks and delayed access to rail at West Coast ports, prompting a significant shift in vessel calls. Savannah is also receiving container trade diverted from the Port of Charleston.

GPA is currently handling the highest volume of ad hoc and new service vessels the Port of Savannah has experienced to date. Uncertainty around the labour talks, unprecedented and unplanned vessel calls, record cargo volume, and vessel diversions to Savannah have contributed to a higher than normal number of vessels waiting at anchor. “Despite the record volumes, the Port of Savannah remains fluid,” said GPA Executive Director Griff Lynch. “Several factors have contributed to our growing container capacity, including expedited infrastructure projects, our inland pop-up yards and an influx of truck drivers moving to the Southeast.” GPA is experiencing record truck turns during both its day and night-gate operations.

Garden City Terminal saw a weekday average of 14,500 truck moves in June, counting both inbound and outbound gate exchanges.

JAXPORT voted No. 1 in US for value The Jacksonville Port Authority has been voted the top port in the nation for value and the top port on the East Coast for overall customer satisfaction by readers of Logistics Management. The publication’s annual Quest for Quality survey evaluated JAXPORT in five areas. The port earned the highest score of any US port in the value category, where readers identified the benefits of using JAXPORT over other ports as “measurable.” JAXPORT also earned the highest overall score of all US East Coast ports.

“This recognition reflects the efforts of our employees, terminal operators and service providers who work hard every day to provide an outstanding level of service for our customers while maintaining the efficiencies Jacksonville is known for throughout the industry,” said CEO Eric Green. “As we grow, providing value to customers remains a top priority as we continue to do our part to keep the supply chain moving for our nation’s businesses and consumers.

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MacGregor selected to supply RoRo equipment MacGregor, part of Cargotec, has been selected to supply RoRo equipment for four RoRo vessels to be built by the Guangzhou Shipyard International Co., Ltd for H-Line Shipping, Korea. The significant order was booked into Cargotec’s 2022 second quarter order intake.The vessels are scheduled to be delivered to the owner starting in Q2 2024 and are expected to be completed in Q2 2025. The order consists of all-electrically operated RoRo equipment: quarter ramps, side ramps, internal movable ramps, and rampway doors to each of the four vessels.

The order also consists of the patented Load Monitoring System, which can boost the load capacity of the ramp and thus provide more flexibility for heavier project cargo. MacGregor’s scope of supply encompasses design and key components including installation assistance.

Hutchison Ports secures USD700m terminal deal in Egypt Hutchison Ports has inked two concession agreements with the Egyptian Government to operate the container terminals in Ain Sokhna Port and El Dekheila Port. Total investment for the initial operations of the two projects is approximately USD700 million. Hutchison will work together with co-investors CMA CGM and COSCO SHIPPING Ports for the project in Sokhna and with Terminal Investment Limited for the project in El Dekheila.The initial ceremony to mark the event was hosted by His Excellency Mostafa Madbouly, Prime Minister of Egypt and His Excellency Kamel Al-Wazir, Minister of Transport.

Half year figures holding for Port of Rotterdam Total cargo throughput in the port of Rotterdam was 0.8% higher in the first half of the year (233.5 million tonnes) than in the same period in 2021 (231.6 million).

In many segments, the war in Ukraine led to significant changes.

For example, imports of both LNG and coal rose very sharply as an alternative to reduced European imports of Russian gas by pipeline.

The throughput of crude oil increased, with oil products falling off. Throughput of iron ore, agricultural bulk and containers was lower than in the same period last year. Container transport to and from Russia has come to a halt, and persistent bottlenecks in global container logistics caused cargo to shift from large to smaller container ports.

Lifetime Advantage introduces upgrades to enhance Konecranes Lift Trucks

For over three years, Konecranes Lifetime Advantage upgrade packages have been regularly bringing customers the most recent advances in safety and productivity available for their lift trucks. Now, the latest chapter in this long-term commitment to improving lift truck performance presents four more innovations from Konecranes. Two of the four new upgrades directly address safety issues. The first safety upgrade, a container checking safety system for Konecranes empty container handlers, allows drivers or service technicians to check or perform maintenance on containers while the container is gripped by the spreader, reducing the downtime needed for container repairs. The system uses mechanical locks to put the driving gears into neutral, block hydraulics and prevent the container from lowering. As an extra precaution, an indicator light on the fender flashes until the driver deactivates the system. The second safety upgrade is a collision warning and object recognition camera system for Konecranes reachstackers, mounted on the counterweight at the back. “Safety and productivity are our highest priorities at Konecranes, so we work hard to include enhancements for both in every Lifetime Advantage release,” says Johan Kårhammer, Global Spare Parts Operations Manager. The other two upgrades in this release are designed to improve productivity on all Konecranes forklift trucks and empty container handlers equipped with an MD4 master display. The first one is an engine shutdown software solution. If the coolant temperature goes over 103oC (217.4oF) or the oil pressure goes below one bar, a pop-up message appears on the display.

The second productivity upgrade is a height indicator. When a laser senses that the total height of the machine (in other words, with an extended mast, including the load) reaches a specified limit, an alarm goes off and a pop-up window appears on the display.

July/August 2022 World Port Development

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news

port & terminal

Port of Hamburg boosts container throughput market share

The container throughput trend in Port of Hamburg in the first half of 2022 was more positive than expected. Total throughput of 4.4 million TEUs in the first six months of the year represented slight growth of 0.9%. Compared to the major competing ports of Antwerp-Bruges, Rotterdam and Bremen/Bremerhaven in Northern Europe, all reporting downturns in container handling, Hamburg was the only major port in the range to report an increase. At the four major ports in the European North Range, for the first six months average container throughput fell by 4.6%. Against this trend Hamburg, gained 1.1 percentage points, being the only top port to achieve growth in container handling. At 61.8 million tonnes, throughput in Germany’s largest universal port was 2.7% lower than in the comparable period of the previous year. The drop in the total throughput can be explained by the weaker figure for bulk cargo handling. At 17.6 million tonnes, handling in Hamburg was down by 8.9 percent.

Port of Felixstowe launches a new Online Data Portal

Hutchison Ports Port of Felixstowe has launched OCEAN (Online Container Enquiry Analytics Notifications), a new online platform to provide fast and accurate real-time information for customers. Commenting on the launch, Adam Ramsey, Commercial Director at the Port of Felixstowe, said: “Global supply chains have been under pressure for the last couple of years and it has been increasingly difficult for shippers to obtain reliable and accurate data on the location and status of their goods. This new service provides a wide range of data and sets a new standard in transparency.

It enables port users to track the progress of their goods through the port and to access operational status reports. “Not every user wants the same information and our team spoke to a wide variety of end users to find out exactly what each wanted. The focus of development has been on human-computer interaction and user experience, providing the right data in a way that is simple to use and delivers on customer needs.”

OCEAN allows port users to track up to 200 containers simultaneously and swiftly. They can refine their search, filtering data that includes estimated vessel arrival times, actual arrival times, when a container is landed, when it is cleared for collection, when it is booked to road haulage or a rail service and what time it departed the port. In addition to container-specific information, the OCEAN dashboard provides a range of at-a-glance terminal status reports.

12 World Port Development July/August 2022

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port & terminal

Maersk to adopt new container firefighting system A.P. Moller - Maersk (Maersk) will install VIKING’s HydroPen system across its entire fleet - a system designed for direct firefighting in stacked shipping containers. The contract represents the single largest HydroPen order for VIKING Life-Saving Equipment. The HydroPen system is driven purely by water pressure through an attached deck fire hose. When water pressure is activated, a turbine will drive the HydroPen drilling unit until it penetrates the container door, whereupon the system will spray water into the container to extinguish the fire directly at the source. In the case of a fire at height in the container stack, the HydroPen system can be deployed using a telescopic device.

Beyond water, the system is compatible with foam or CO2. Besides the system itself, the company also offers digital training through its VIKING Safety Academy platform.

Port of Virginia sets new Fiscal Year record The Port of Virginia set a new June cargo volume record having handled more than 317,000 TEUs, which is an increase of nearly 36,000 units when compared with last June. June was the port’s fourth consecutive month of cargo volumes of 314,000 TEUs or more and the month’s activity helped elevate the port’s total TEU volume for fiscal year 2022 (FY22) to a record- breaking 3.7 million units. The FY22 TEU volume increased 14.7% when compared with FY21, which was the port’s previous best fiscal-year performance. (The port’s fiscal year runs begins July 1 and runs through June 30.) “Our growth is being driven by the confidence our customers and the cargo owners have in our ability to process their ships and cargo swiftly, safely and efficiently,” said Stephen Edwards, the port’s CEO and Executive Director. “There were some challenges, but we adapted and delivered real value to all of our port users and the result is an increasing demand for the services of The Port of Virginia. Our labour partners and the entire port team performed at a very high level and the result is a record-setting fiscal year.”

Shipping industry to remove Indian Ocean High Risk Area Following more than ten years of effective threat-reducing counter-piracy operations the shipping industry has removed the ‘Indian Ocean High Risk Area’ (HRA). Notification of this action was forwarded in a submission in August to the International Maritime Organization (IMO) for the next meeting of the Maritime Safety Committee scheduled to start on 31 October 2022. The removal of the HRA reflects a hugely improved piracy situation in the region, largely due to concerted counter-piracy efforts by many regional and international stakeholders.

No piracy attacks against merchant ships have occurred off Somalia since 2018. The IMO has been informed of the decision made by International Chamber of Shipping (ICS), BIMCO, International Marine Contractors Association (IMCA), INTERCARGO, INTERTANKO and Oil Companies International Marine Forum (OCIMF). The removal of the HRA will come into effect at 0001 UTC on 1 January 2023, allowing charterers, shipowners and operators time to adapt to the changed threat from piracy.

Volume growth for DP World DP World Limited handled 20.2 million TEUs across its global portfolio of container terminals in the second quarter of 2022, with gross container volumes increasing by 2.9% year-on-year on a reported basis and 3.5% on a like-for-like basis. Volume growth in Q2 22 was driven by terminals in Asia Pacific, Americas and Australia. Jebel Ali (UAE) handled 3.6 million TEUs in Q2 2022, up 3.5% year-on-year. On a H1 2022 gross basis, DP World handled 39.5 million TEUs.

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2023

WPD-8. JulAug 2022 news.qxp_Pages-1-13-Nov11 WPD 06/09/2022 18:57 Page 14

12th International Conference & Exhibition

Savannah Convention Center, Savannah, Georgia, USA

28 & 29 March 2023

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FURTHER INFORMATION VISIT WWW.MCIMEDIA.COM Specially designed for representatives from operations, maintenance and engineering and those involved in the effective development and operation of container ports and terminals.

An exhibition comprising a select group of elite providers enables companies to reach a focused high-level audience, showcase products and network with potential, new and existing clients.

WPD-8. JulAug 2022 news.qxp_Pages-1-13-Nov11 WPD 06/09/2022 18:58 Page 15

port & terminal

news

Barcelona breaks record for in the first half of the year The Port of Barcelona broke the record for total cargo traffic in the first half of the year with movements of 36.3 million tonnes and a year-on-year increase in total traffic of 11%. The previous record dates from before the pandemic when traffic hit 34.5 million tonnes in 2019.

This year’s figure exceeded that by 6%. This was possible because, with the exception of vehicles, all major traffic closed this six-month period in positive territory. “This good news indicates that our hinterland companies are working well and are striving to recover pre-pandemic levels”, remarked Damià Calvet, President of the Port of Barcelona.

In addition to historically high total traffic, an important milestone was achieved in container traffic, which registered its record best in a first half of the year. Between January and June, 1.8 million TEUs passed through the port, with growth of 0.7%. The previous record was 1.7 million TEUs moved a year ago. In dry bulk, the port closed the first six months of the year up 2.34 million tonnes - a year-on-year uptick of 3.2%.

SC Ports achieves record fiscal year South Carolina Ports achieved a record fiscal year 2022 while maintaining fluidity for customers and the US Southeast supply chain.

“Through well-planned, targeted investment, South Carolina Ports has positioned itself as a top driver of South Carolina’s economy,” Governor Henry McMaster said. “Our investments into critical port infrastructure have attracted world-class companies to South Carolina and helped our businesses thrive.”

SC Ports handled 2.85m TEUs at Wando Welch Terminal, North Charleston Terminal and Leatherman Terminal in FY 2022.

SC Ports saw a 12% uptick in cargo this fiscal year, with more than 164,000 additional containers moving through Charleston than the year prior.

AD Ports Group and Hutchison Ports ink MoU to form strategic partnership AD Ports Group announced that it has signed a Memorandum of Understanding (MoU) with Hutchison Ports. As per the MoU, AD Ports and Hutchison Ports will identify joint investment and business opportunities related to feedering, logistics, and port activities across the GCC, Africa, and Asia. Additionally, the two organisations will form a partnership to operate within Tanzania, where they will work closely together to explore opportunities to further enhance the capabilities and market competitiveness of port operations across the East African country, including Dar Es Salaam Port. Potential areas of focus include improving servicing to several of Tanzania’s landlocked remote areas and neighbouring countries, cultivating more cargo sources, and the enhancement of existing supporting logistics and cargo processing facilities.

PSA Singapore drives digital transformation In response to the growing need for supply chains to be more resilient and agile, PSA Corporation Ltd (PSA) has launched over 50 Application Programming Interfaces (APIs) to enable digital transformation and enhance digital integration within the haulage industry in Singapore.

This is a significant push for the local haulier community towards information sharing and adoption of new technologies to streamline operations and processes.With these APIs, the hauliers’ existing in-house systems can be digitally connected with PSA’s Portnet®, streamlining and automating their work processes including port documentation.

Portnet® is a nation-wide business to business port community solution that provides real-time and detailed information on all port, shipping, and logistics processes. The need for manual documentation will become a thing of the past, as digitalised processes enables greater efficiency, reliability, timeliness and transparency.

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port survey

australia

Australian ports invest and expand Claire Instone reports…

A

ustralia is a key player in international shipping, with it being an island nation the country’s ports are critical, with 98% of the nation’s trade volume moving by sea.

Herein, I bring readers an overview of the handling figures at the major ports of the ‘land down under’ alongside highlighting some of the major projects taking place at Brisbane, Melbourne and Hedland.

The numbers To start, let’s take a quick look at the numbers in terms of container throughput: - Australia’s closest port to Asia, Darwin Port, processed around 20,000 TEUs in calendar year 2021.

- The Port of Port Hedland, operated by Pilbara Ports Authority, handled in the region of around 15,000 TEUs in 2021.

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- Handling pretty much all of the container trade for Western Australia, Port of Fremantle saw in excess of 778,000 TEUs during 2021.

- Port of Brisbane - one of Australia’s fastest growing container ports and the state’s largest multi-cargo port - had a very productive year, processing 1,554,000 TEUs in CY 2021.

- The largest container port in the state of New South Wales, Port Botany hit a total throughput in the region of 2,700,000 TEUs in 2021.

- The country’s largest port for containerised cargo, Melbourne, achieved 3,278,635 TEUs for container handling in 2021.

Brisbane’s new terminal and park History was made at the Port of Brisbane recently, with the new Brisbane International Cruise Terminal (BICT) welcoming its first ever cruise vessel to the facility. The arrival of P&O Cruises’ Pacific Explorer ushered in a new era for cruising in Queensland.

“It’s been a long wait, but we are extremely proud to have finally welcomed the Pacific Explorer to the new, $177 million Brisbane International Cruise Terminal,” Port of Brisbane CEO Neil Stephens said.

In addition to the opening of the new terminal, the maritime hub - located at the mouth of the Brisbane River - has also welcomed a new container park project by global logistics operator MEDLOG with the signing of a 30-year lease on a 7.3ha site on Fisherman Islands. When operational, it will be one of the world’s most automated container parks, incorporating high-end technology to deliver world-class standards in operation and safety.

The facility is expected to be in use by the third quarter of this year. As is standard in all new developments at the port, it will incorporate sustainable design elements including a solar installation and use of low carbon concrete.

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australia

Port Botany.

(Photo credit: DP World)

announcement at Webb Dock East, and was joined by CEO of VICT, Tim Vancampen and Managing Director of ANL, Shane Walden.

VICT is also investing in additional infrastructure to support the market with faster vessel turn around and additional slots for their landside customers. Cannon says the project is an important part of a 30-year investment strategy, designed to create a more efficient and productive port that helps to strengthen Victoria’s economy.

“Now more than ever, we need to make sure we get essential goods delivered to hospitals, businesses, schools and homes. We are seeing a rising number of larger vessels calling at the port and our current infrastructure at Webb Dock East at times does not allow for two ships to berth at the same time. For example, this project will enable two larger vessels to berth at the same time at this part of the port, reducing wait times for the ships to dock,” he said.

“MEDLOG’s expansion into Queensland and its new home at Port of Brisbane speaks volumes about its confidence in the Port being the right place to support its long-term growth. Port of Brisbane is on a journey to become Australia’s premier port and logistics hub; welcoming industry leaders such as MEDLOG plays a key role in ensuring the Port of Brisbane achieves this vision and continues to deliver for the Queensland economy and community well into the future,” said Stephens.

Melbourne’s extension and rail transformation projects Port of Melbourne has confirmed works are taking place at Webb Dock East to reduce port congestion, improve efficiency and accommodate larger ships. The project involves demolishing a redundant section of concrete and extending the quay line by 71 meters.

The contract for the works has been awarded to Fitzgerald Constructions Australia, with completion scheduled for Q3, CY2023. Port of Melbourne CEO Saul Cannon made the

Webb Dock East was designed as a two-berth terminal. This project will restore Webb Dock East’s intended design capacity. In addition to these works, the port also confirmed that its Port Rail Transformation Project (PRTP) is forging ahead, with another milestone achieved with the official naming of a new permanent two-way, two-lane road connecting Dock Link Road and Mullaly Close/Coode Road.

The new road has been named Intermodal Way, and is a reflection of the integration of maritime, rail and road freight modes which all converge at the port to seamlessly move the vital cargo which supports the operation of our communities, State and the nation.

Upon its completion this November, this new road will provide an uninterrupted connection for movement of containers between Dock Link Road and the wider port area. PRTP involves the construction of a new rail terminal interfacing with the Swanson Dock East International Container Terminal.

port survey

The rail terminal will include two new sidings that can handle 600-meter long trains.

Common user rail infrastructure will also be upgraded. “We have invested over $125m in the project, and it shows our commitment in meeting the growing demand for better rail freight solutions,” said Cannon. “The project will see more containers moved by rail more efficiently, by-passing roads in inner Melbourne.”

Major investment at Hedland In recent months it was announced that the McGowan Government will allocate $78 million towards the Lumsden Point development to grow capacity at the Port of Port Hedland diversifying trade, driving investment and creating jobs. Lumsden Point will facilitate the export of battery metals such as lithium and copper concentrates, the import of renewable energy infrastructure, including wind turbines and blades, as well as support the rapid growth of direct shipping services to the Pilbara.

The upcoming works will include construction of seawalls to form laydown areas adjacent to the future wharf, as well as a causeway to connect the wharf and laydown area to the proposed logistics hub. The works will also enable dredging of the berth pocket and turning basin. Growing the capacity of Pilbara Ports has been identified by the independent Infrastructure Australia as a national priority.

Lumsden Point forms part of the recently completed Port of Port Hedland Development Plan Review, which was undertaken in order to maximise export capacity at the port.

Works are expected to start later this year.

“This critical economic infrastructure will enable the expansion of direct shipping services from Asia to the Pilbara, with the Port of Port Hedland seeing an increase in container v olumes over the past 12 months, resulting in lower costs for businesses and consumers.

Lumsden Point will become the main export pathway from the Pilbara for battery metals and minerals,” states Pilbara MLA, Kevin Michel.

Melbourne is working on Webb Dock East.

(Photo credit: Port of Melbourne)

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singapore

PSA spearhead sustainable trade

(Photo credit: PSA Corporation Ltd).

Claire Instone takes a look at how PSA are playing an active role in contributing to sustainability whilst driving innovation, including details of Singapore’s first Energy Storage System.

W

ith flagship operations in Singapore and Antwerp, PSA’s global network encompasses over 50 locations in 26 countries around the world. PSA International Pte Ltd (PSA) handled record container volumes of 91.5 million TEUs at its ports around the world for the year ending 31 December 2021.

The Group’s volume increased 5.6% over 2020, with flagship PSA Singapore - the world’s largest container trans-shipment hub handling about a fifth of all trans-shipped containers contributing a record 37.2 million TEUs (+1.6%) and PSA terminals outside Singapore handling 54.3 million TEUs (+8.4%).

Tan Chong Meng, Group CEO of PSA, said, “The world in 2021 continued on its rollercoaster ride with widespread supply chain disruptions and congestions coupled with sustained recovery in global trade and demand.

Despite the multiple hurdles posed by the

18 World Port Development July/August 2022

pandemic, PSA contributed to keeping supply chains safe and open worldwide. Over the past two years, we have ridden the waves of the COVID-19 crisis to inculcate in our people greater agility and alignment towards the need for change. Looking ahead in 2022, supply chain issues are expected but there are opportunities in the crisis - our continued relevance will depend on our ability to seize them.”

Big responsibility As a leading port group and trusted partner to cargo stakeholders, the organisation has to ensure it meets the highest standards across the board. As such, for more than four decades, PSA has continuously developed and upgraded its container handling infrastructure, pioneered new systems and processes and streamlined operations to meet the rapid growth.

However, with such growth and innovation comes great responsibility. Plans and operations need to be executed and run sustainably alongside responsible maritime practices.

As such, PSA is constantly working to deepen its commitment to sustainability and drive decarbonisation of the shipping ecosystem.

Speaking on PSA’s commitment in this area, Meng points out that the organisation is working to stay ahead of the curve. “PSA will continue to seek win-win partnerships and innovate beyond port operations to provide more efficient and resilient cargo solutions that benefit the greater supply chain ecosystem and catalyse the shift towards sustainable trade.”

Staying true to its word, in recent months PSA has announced myriad projects aimed at driving environmental stewardship which include green initiatives, reducing carbon footprint and enhancing energy efficiency.

Spearheading sustainable trade In June, the operator confirmed it successfully completed a joint pilot project to integrate and enhance the flow of containers between two PSA facilities - Keppel Distripark (KD) and the On-Dock Depot (ODD). Executed in partnership with Orient Overseas Container Line Limited (OOCL), the paves the way for further carbon footprint reduction and will enhance productivity for Singapore’s haulage community. In alignment with its overall decarbonisation efforts, PSA initiated this

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singapore logistics solution to reduce overall trucking distance for empty container collection and returns within Singapore and have been working closely with shipping lines and the local logistics community. The enhanced flow of empty containers between KD and ODD can reduce an average of 93% of kgCO2e (kilogram of carbon dioxide equivalent) per trip due to the significantly shorter distance.

“The urgency to decarbonise the world’s logistics value chains has never drawn more attention internationally and within the industry.

This pilot trial is indeed one of the milestones along our decarbonisation journey, and we are keen to establish additional long-lasting sustainability collaborations with our business partners and customers,” states Richard Hew, Managing Director of OOCL (Singapore).

Moreover, in back in May, PSA expanded its collaboration with CMA CGM with a new digital solution to reduce carbon footprint.

The ‘Opt-E-Arrive’ will enable CMA CGM vessels to arrive just-in-time at berth at terminal, skipping the anchorage stop - an innovative solution to reduce greenhouse gas emission through further optimisation of bunker consumption. An annualised bunker savings of 4 % to 7 % for CMA CGM vessels arriving in Singapore is expected to be achieved with the digital solution.

Another success in greening supply chains was also reported in May, following PSA’s work with Ocean Network Express Pte. Ltd (ONE) to use reclaimed refrigerant gas from reefer containers. PSA is the first in Southeast Asia to commence trials on the use of reclaimed refrigerant gas for reefers, with ONE being the first shipping line to successfully complete the trials using their reefers with PSA. Recycling refrigerant gas effectively saves about 4,000kg of carbon emissions per reefer, which is equivalent to the emissions from driving a normal internal combustion engine car for close to a year.

Following the successful trials with ONE, PSA looks forward to extending this green initiative to other shipping lines and partners. To further support the push towards sustainability, PSA will recover the commonly used refrigerant gas that is being released during the maintenance and repair works of reefers. “PSA is one step closer in ‘greening up’ supply chains and shaping the future of Singapore as an innovative and sustainable global maritime hub,” says Ong Kim Pong, Regional CEO Southeast Asia, PSA.

Singapore’s first ESS Most recently in July, PSA confirmed it has deployed Singapore’s first Energy Storage System (ESS) to enable more energy efficient port operations at Pasir Panjang Terminal and will be operational in Q3 2022. The project is part of the USD8 million partnership between the Energy Market Authority (EMA) - a statutory board under the Singapore Ministry of Trade and Industry - and PSA to transform PSA’s energy usage in port operations through the use of smart grid technologies and energy management systems. The ESS is part of the Smart Grid Management System (SGMS) which has the potential to improve the energy efficiency of port operations by 2.5% and reduce the port’s carbon footprint by 1,000 tCO2e per annum, the equivalent of removing around 300 cars off the road annually.

Port operations involve the use of energyintensive equipment such as cranes and prime movers. Due to the dynamic nature of port activities, the energy demand can fluctuate throughout the day. EMA and PSA have awarded a consortium led by Envision Digital to develop an SGMS which includes an ESS and solar photovoltaic panels managed by Envision Digital’s EnOSTM. The EnOSTM platform uses machine learning to provide real-time automated forecasts of the terminal’s energy demand. This enables long-term planning of port assets, short-term scheduling and real-time energy management within the terminal to reduce overall energy costs and carbon footprint.

port survey

Whenever there is a forecasted surge in energy consumption, the 2 megawatt/2 megawatt-hour battery ESS is activated to supply energy to help meet demand. With this enhancement to Pasir Panjang Terminal, spikes in energy demand of the port will be minimised.

“Electricity demand will grow in the next decade with increasing electrification. The adoption of innovative demand-side technologies such as smart energy management systems and energy storage systems will help us optimise our energy supply and power grid capabilities.

We are pleased to partner PSA to support this project. Innovative digital solutions such as this project will play a part in making our energy systems more efficient and resilient,” states Jeanette Lim, Director of the Industry Development Department at EMA. Going forward, insights from the SGMS can also be applied for advanced energy management and optimisation at the Tuas Port, which would be the world’s single largest fully automated terminal upon completion in the 2040s.

“As a premier hub port driving innovation, digitalisation and sustainability, PSA can play an active role in contributing and co-creating Singapore’s smart grid architecture and energy systems. As PSA enhances efficiency with port automation, we will continue to drive collaborative innovation with our partners for greater resilience in our energy future,” confirms Alvin Foo, Head of New Technologies and Sustainability at PSA.

Singapore’s first Energy Storage System has been installed at PSA’s Pasir Panjang Terminal. The photo shows the battery modules within the battery container. (Photo credit: PSA Corporation Ltd).

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scotland

port survey

The net-zero opportunity for ports in Scotland Gordon Feller reports...

P

orts are quite literally at the frontier of Scotland’s trading arrangements. As well as providing the foundation for Scotland’s trade with the world, the ports industry plays an important role in connecting communities in the country. Ferries are a vital part of the transport network and each year ports in Scotland handle 10.5 million domestic ferry passengers travelling both within Scotland as well as to and from Northern Ireland.

Here are a few key facts about Scottish ports: • 95% of trade comes through seaports • 67 million tonnes of freight handled by Scottish ports, 14% of the UK’s total. This is equivalent to 13 tonnes of freight per person, double that of England.

• 30,000+ commercial vessels called in Scottish ports in 2015, including 21,000 cargo vessels • 25% of Scotland’s total annual freight tonnage is transported by water.

Ports are important not just in their traditional cargo handling roles.They have a long experience in supporting offshore energy, fishing, cruise and leisure markets.They provide vital locations for the development of offshore energy which are a key part of Scotland’s energy, growth and decarbonisation agendas. The Scottish Ports Group published a report outlining six key policy priorities: connectivity, energy transition, consenting and the environment, cruise, Freeports and fishing.

The Scottish Ports Manifesto includes a number of key requests of the Scottish Government, including: • A new road investment programme to ensure that ‘last mile’ connections to ports match the quality of Scotland’s port infrastructure and reduce bottlenecks.

• A review of the wider marine protection framework would be welcome to ensure that it protects and enhances habitats and species effectively without delaying sustainable development.

• To support the return to cruising in Scotland when it is safe to do so. Caution is welcomed and expected but Government must listen to assurances regarding their safe practices and COVID-19 operation procedures.

• For the Scottish Government to swiftly work with counterparts within the UK

Government to launch bidding for Freeport status at their earliest opportunity, in order to minimise further delay and mitigate displacement.

Stuart Cresswell, Chair of the Scottish Ports Group and Port Manager, Ayr, Troon & Silloth (Associated British Ports), said that: “Scottish ports, and the key workers within them, play a fundamental role in ensuring vital supplies and provisions are delivered to the people of Scotland - a fact which we believe to be even more visible in the wake of the COVID-19 pandemic.”

According to the report, the Scottish Government has developed a strategy to create a positive environment for Scottish maritime businesses and institutions to grow and prosper within a competitive international market. The country’s ports operate as commercial businesses, and they are working to adapt and develop to meet the demand of the maritime industry.

They identified the need for new development to support the various sectors using them.

Some examples include: • The largest trust port investment in the UK will see Aberdeen South Harbour completed and open for business in October. The £350 expansion - the largest marine infrastructure project in the UK - was meant to open last year but has suffered months of delay thanks to Covid and the chief controller pulling out.

Back in June, principal contractor Dragados pulled out of the scheme by mututal agreement.

Just recently in January, Scottish National Investment Bank allocated a £30m load to the project.

• A new fish market in Lerwick with boats.

• Development of an ultra-deep-water port at Dales Voe in Lerwick is aimed at bringing the largest decommissioning projects to Scotland.

• Stornoway’s development of a new multifunctional deep-water berth accommodating the largest cruise vessels as well as general cargo, renewables industry, oil & gas and ferry infrastructure.

Scottish Government recognises the impact the maritime sector has on the environment, and is working with shipbuilding industries at the forefront of devising technology advances to increase ship efficiency and create cleaner solutions.

How can how Scotland’s ports and harbours tap into the potential created by the development of offshore wind?

Some of the answers are contained in a special report, entitled: Ports for Offshore Wind.

Having launched Scotland’s first offshore wind leasing round for a decade, ScotWind Leasing Corp. is set to kick start Scotland’s new generation of offshore wind farms and build new demand for operations and maintenance facilities to support major projects.

The special research report, carried out by leading technical consultants Arup, found that while Scotland already has a strong and thriving ports sector, there are various steps that could be taken to maximise the future potential of Scottish ports to host the major offshore wind projects set to come to Scotland.

These steps, if applied successfully, might help to ensure that Scotland’s ports support the major expansion of offshore wind in Scotland, and help the country take a major stride towards Net Zero.

Among the core recommendations contained in the special report it’s worth noting that these three stand out: • Taking steps to increase the port capacity that is suitable for large scale offshore wind developments.

• Establishing a national strategic approach to how offshore wind port facilities are developed.

• Developing new optimal operation and maintenance facilities which open up the right opportunities for Scotland’s ports.

The Director of Marine for Crown Estate Scotland, Colin Palmer, said that: “this is an important piece of work which should act as a roadmap for both public and private sectors in Scotland to ensure that our ports and offshore wind sectors collaborate effectively and maximise the potential that offshore wind can bring to communities.

Scotland has fantastic port facilities as well as some of the best offshore energy resources in the world; making sure these two are successfully aligned can help us take a giant leap towards our Net Zero commitments, and help to build a green economic recovery for Scotland.”

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scotland

Environment Secretary Roseanna Cunningham said that: “Scotland is already a world-leading destination for the development of low carbon energy and this study strengthens our status as a hub for global players. It also demonstrates the manufacturing and supply chain capabilities in Scotland that will help make a significant contribution to meeting our world-leading climate change targets and support the creation of green jobs. Encouraging, cross-sectoral collaborations in areas like energy and transport exemplify the opportunities available through our ‘Blue Economy’ model, and the important role it will play in both our economic recovery from coronavirus and our path towards net-zero.”

In February of this year, during a visit by PM Boris Johnson to Scotland, the Scottish and UK governments agreed to establish two green freeports in Scotland. This comes at a time when the UK government is promoting special economic zones, offering tax breaks and lower business tariffs, as one part of its “levelling-up” agenda.

The idea has become embroiled in politics.

The Scottish Greens criticised the plans as “greenwashing”. And they said it amounted to nothing more than a “corporate giveaway”.

If all goes according to plan, the open competitive bidding process begins in the spring of this year. Advocates for this approach are hoping that the new sites will open in 2023.

Ministers from both the Scottish and UK governments will have a say in the assessment and selection process. Previously, after a number of sites were announced for England, these two governments were unable to agree on any plans to establish freeports north of the border.

Scottish ministers later said to the press that they would pursue an alternative “green freeport” model, with additional standards around jobs and climate targets.

Scotland’s Finance Secretary Kate Forbes had this to say in February: “We have been able to reach an agreement on a joint approach that enshrines the Scottish government’s commitment to achieving net zero and embedding fair work practices through public investment. The establishment of green freeports will help us create new green jobs, deliver a just transition and support our economic transformation.”

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The UK government has committed funding of £52m to the project and bidders will have to pledge to reach net zero by 2045. However, in the first major split from the SNP since they signed a power-sharing deal last year, the Scottish Greens criticised the plans as “greenwashing”.

These low tax zones could give rise to a little Singapore on the Cromarty Firth, where goods can be imported, assembled and exported without the usual taxes and paperwork. Firms inside the freeport could pay lower rates of VAT and employment tax.

In pushing forward with their strong criticisms of the plan, the Finance spokesman Ross Greer told BBC Radio's Good Morning Scotland programme that his party wanted nothing to do with “these so-called green freeports”.

Greer added this in his remarks to the press: “There is nothing genuinely green about them.

Freeports are a really effective way to give tax relief and throw public money at multinational companies who are already doing their best to avoid tax.The SNP used to oppose freeports for exactly the same reason Scottish Greens still do.

Internationally, freeports are associated with crime, money laundering, smuggling, low wages.”

Nicola Sturgeon’s team warns that could give rise to low wage, low value zones, which water down workers’ rights and rules which protect the environment. So she’s insisted that firms inside green freeports should pay the living wage, and commit to net-zero targets on climate change, and inclusive growth in local communities.

Furthermore, Greer said that there was “no actual solid requirements” to meet climate targets or stick to fair work practices, and that it was “naive” to expect large corporations to adhere to these rules.

Secretary Kate Forbes told BBC Scotland that all green freeport applicants would have to stick to their commitments to net zero targets and fair work: “If a bidder fails to do so, we would look at this very carefully. We would expect bidders who set out promises to meet those promises. They will be required to deliver robust decarbonisation plans, demonstrating how they will move to net zero.

A bidder will not win without it.”

Under the UK government’s model, freeports are centred around at least one air, rail or sea port, but can extend up to 28 miles (45km) beyond. Forth Ports - which owns and operates seven ports on the east coast of Scotland - said it would be bidding to create a Firth of Forth green freeport. Other bidders have not yet been announced. But, in July last year, the Scottish government named nine areas being considered - Shetland, Orkney, Aberdeen with Peterhead, Montrose, Dundee, Cairnryan, the Firth of Forth and Glasgow city region. A Cromarty Firth consortium is also understood to be interested.

Freeports were one of PM Johnson’s big ideas to “level up” the country. He thought they’d bring new investment and jobs to areas that lag behind. But he had to change their name - they’re now “green freeports” here to win backing from the Scottish government.

If freeports don’t offer incentives, why would employers want to move there at all?

If Scottish freeports are regulated more, will they be able to create new jobs, or compete with their English counterparts?

The Scottish government wants to avoid a stampede of firms moving into a low-tax zone, without adding anything to the Scottish economy. So it’s happy to pour cold water on one of Boris Johnson’s dreams.

Ian Murray, Labour’s Shadow Scottish Secretary, said the agreement had been “delayed for months because the two governments disagreed over the name. As a result of their petty point-scoring, regions in England already have a head start." The Scottish government and the UK Treasury will use their tax powers, including rates relief, to support the freeports.

Last year, the Scottish government said UK ministers risked undermining devolution if they set up the freeports in Scotland or Wales without the backing of devolved governments.

(Ex) PM Johnson said that he was “delighted that people across Scotland will reap the benefits that will come from having two new green freeports. Freeports will help to accelerate our plan to level up communities across the whole of the United Kingdom…

They have the power to be truly transformational by creating jobs and investment opportunities to enable people to reach their potential.”

Aberdeen Harbour will open in late 2022.

Stornoway Harbour is also scheduled to be opened in late 2022.

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india

port survey

Policy support - In the Union Budget 2022-23, the total allocation for the Ministry of Shipping was Rs. 1,709.50 crore (approx. USD 223 million).

- In July 2021, the Marine aids to Navigation Bill 2021 was passed by the Parliament, incorporating global best practices, technological developments and India’s obligations in this field.

Competitive advantage - India has a coastline which is over 7,517km, interspersed with more than 200 ports.

- Most cargo ships that sail between East Asia and America, Europe and Africa pass through Indian territorial waters.

Strong support The Indian Government is highly active in supporting the ports sector. It has allowed Foreign Direct Investment of up to 100% under the automatic route for port and harbour construction and maintenance projects. It has also facilitated a 10-year tax holiday to enterprises that develop, maintain and operate ports, inland waterways and inland ports.

Bright future for Indian ports The India Brand Equity Foundation (IBEF) is a Trust established by the Department of Commerce in India. Its primary objective is to promote Brand India. In May, the organisation released a report on the Indian port industry.

Herein, WPD present the findings…

I

ndia, today, is well established as a credible business partner, preferred investment destination, rapidly growing market, provider of quality services and manufactured products; and, stands on the threshold of unprecedented growth.

According to the Ministry of Shipping, around 95% of India's trading by volume and 70% by value is done through maritime transport.

India has 12 major and 205 notified minor and intermediate ports. Under the National Perspective Plan for Sagarmala, six new mega ports will be developed in the country.The Indian ports and shipping industry play a vital role in sustaining growth in the country’s trade and commerce. India is the sixteenth-largest maritime country in the world with a coastline of about 7,517 kms. India’s key ports had a capacity of

1,561 million tonnes per annum (MTPA) in FY21. Moreover, India's merchandise exports in FY22 were at USD 417.8 billion, up 40% from the previous year. In October 2021, India’s merchandise exports grew 43.05% year-on-year to reach USD 33.65 billion.

According to the report, there are four key drivers for the port industry in India: Robust demand - The ports sector in India is being driven by high growth in external trade.

- In FY22, all key ports in India handled 650.52 million tonnes of cargo traffic.

Attractive opportunities - The key ports are expected to deliver seven projects worth more than Rs. 2,000 crore (approx. USD 274 million) on a public-private partnership basis in FY22.

- The Finance Minister proposed to double the ship recycling capacity of 4.5 million light displacement tonnes (LDT) by 2024; expected to generate additional employment opportunities in India.

Moreover, the Government has taken several measures to improve operational efficiency through mechanisation, deepening the draught and speedy evacuations. Some of the major initiatives taken by the government to promote the ports sector in India include: - In November 2021, the Union Minister for Ports, Shipping and Waterways & Ayush, Sarbananda Sonowal, inaugurated the new Radars and Vessel Traffic Management System of Cochin Port Trust. The VTMS (Vessel Traffic Management System) commissioned in Cochin Port in 2009 has been upgraded with a stateof-the-art system consisting two new radars, one AIS Base station, three VHF Radios and associated software & hardware installed at a cost of Rs. 5.8 crore (USD 772,161.66).

- In November 2021, Sonowal inaugurated the simultaneous launching of five vessels at Cochin Shipyard Limited (CSL).

- In November 2021, the Union Minister of Culture and Tourism, G Kishan Reddy, announced that the centre has sanctioned Rs. 100 crore (approx. USD 13 million) for Visakhapatnam port cruise terminal.

- The Draft Indian Ports Bill 2021, which was circulated in July 2021, aims to centralise the administration of minor ports that are currently managed by state governments.

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india

- The Inland Vessels Bill 2021 was approved by the Lok Sabha in July 2021. Instead of distinct regulations created by the states, the bill attempts to include a single legislation for the country. The registration certificate issued under the new law will be valid throughout the country and state approvals will not be necessary. The bill also establishes a single database for recording vessel and crew information on an Internet portal.

- In July 2021, the Marine Aids to Navigation Bill 2021 was passed by the Parliament, incorporating global best practices, technological developments and India's international obligations in this field.

- In June 2021, the Gujarat government provided approval to build a new jetty worth an estimated ~Rs. 192 crore (approx. USD 25 million) at Navlakhi port which has been in operation since 1939.

- In June 2021, the Ministry of Ports, Shipping and Waterways and Ministry of Culture signed an MoU for cooperation in development of National Maritime Heritage Complex in Gujarat.

- In June 2021, the Ministry of Ports, Shipping and Waterways and Ministry of Civil Aviation signed a memorandum of understanding (MoU) to develop sea plane services in India.

- On May 10, 2021, JNPT and New Mangalore Port handled 120 tonnes of medical oxygen on a priority basis owing to the pandemic.

- In February 2021, the Major Port Authorities Bill, 2020 was passed by the Parliament of India. The bill aims to decentralise decision-making and reinforce excellence in major port governance.

Myriad investments and developments In addition to steps taken by the government, the report also highlights myriad projects and plans that are being put in place, or that have recently been executed, in order to drive the Indian port and shipping industry forward: - India’s plan to invest USD 82 billion in port projects by 2035.

- Indian ports received cumulative FDI inflow worth USD 1.63 billion between April 2000 and June 2021.

- In October 2021, the Syama Prasad Mookerjee Port, Kolkata, gave importers the opportunity to bring in vessels at the deep draughted anchorages located at Sagar, Sandheads and X Point.

- In October 2021, Adani Group announced that it wants to make Adani Port a net-zero carbon emitter by 2025 and power all its data centres with renewable energy by 2030.

Jawaharlal Nehru Port Trust (JNPT) Special Economic Zone became the first of its kind operational port-based multi-product SEZ in India.

- India is expected to begin full operations in Iran’s Chabahar Port by the end of May 2021.

India is building two terminals at the port and will operate them for 10 years.

- The Competition Commission of India (CCI) approved Adani Ports and Special Economic Zone’s proposed acquisition of 10.40% equity investment in Gangavaram Port in September 2021. The 10.4% equity shareholding will be bought from the government of Andhra Pradesh.

- In Union Budget 2020-21, the total allocation for the Ministry of Shipping was Rs. 1,702.35 crore (approx. USD 233 million).

- APSEZ (Adani Ports and Special Economic Zone) plans to become the world's largest private port company by 2030.

The key ports are expected to deliver seven projects worth more than Rs. 2,000 crore (approx. USD 274 million) on a public-private partnership basis in FY22. Private sector investments in ports have steadily increased over the last five years, touching an all-time high of USD 2.35 billion by 2020.

- In July 2021, Adani Ports & Special Economic Zone stated that it has priced a USD 750 million senior unsecured dollar notes issuance with 20-year and 10.5-year tranches, with fixed coupons of 5.0% and 3.8%, respectively.

- In Union Budget 2021, the government announced subsidy funding worth Rs. 1,624 crore (approx. USD 222 million) to Indian shipping companies to encourage merchant ship flagging in the country.

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- In June 2021, APSEZ handled cargo volume of 75.69 MMT, registering a year-on-year growth of 83%, in the first quarter of FY 21-22.

- In July 2021, India’s merchandise exports reached USD 95 billion in the three months ended June.

- In April 2021, the Competition Commission of India (CCI) approved the plan to acquire 89.6% Gangavaram Port Limited by APSEZ. - In April 2021, Adani Ports signed an agreement with Vishwa Samudra Holdings Pvt. Ltd., to acquire 25% stake of Adani Krishnapatnam Port Limited (Krishnapatnam Port) for a consideration of Rs. 2,800 crore (approx. USD 226 billion).

- In March 2021, APSEZ announced plans to acquire 58.1% stake in Gangavaram Port Limited for Rs. 36.04 billion (approx. USD 493 million). The port is currently owned by DVS Raju and family.

- In March 2021, Adani Ports announced to partner with John Keells Holdings and Sri Lankan Ports Authority to develop and operate the West Container Terminal of the Colombo Port in Sri Lanka for 35 years.

- In February 2021, JNPT launched a solid waste management project as a part of its green port initiatives.

- In November 2020, Mormugoa Port Trust (MPT), operator of the western Indian port of Mormugoa, extended concessions on iron ore imports and export freight traffic until June 2021 to help ease India's iron ore shipping trade amidst the COVID-19 pandemic.

- In November 2020, JSW Infrastructure completed the acquisition of Chettinad Group’s port business for Rs 1,000 crore (approx. USD 135.50 million). This acquisition will enable JSW Infrastructure to gain ownership and operational control of a deep draught international coal terminal and a bulk terminal at Kamarajar Port Limited (KPL) as well as coal and bulk commodity terminal at New Mangalore Port Trust (NMPT).

- In October 2020, APSEZ completed the acquisition of Krishnapatnam Port Company Ltd. (KPCL) for an enterprise value of Rs 12,000 crore (approx. USD 1.63 billion) - In July 2020, Adani Ports and Special Economic Zone (SEZ) Ltd, launched an offshore bond offering, raising USD 750 million.

- In January 2020, DP World launched a new rail service between Kochi and Bangalore to lower costs and reduce transit time between the two cities by >40%.

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shuttle

RIC’s facility in Taicang, China. However, Kalmar would continue to offer crane automation and crane related services for its customers globally. RIC has been Cargotec’s Original Equipment Manufacturing (OEM) subcontractor providing assembly services for Cargotec’s business areas Kalmar and MacGregor since 2020 and prior to that Cargotec and Rainbow operated through a joint venture in China since 2013.

Konecranes Noell Sprinter Carrier

Kalmar and Konecranes continue to thrive despite merger setback In March this year the merger of Finlandbased Konecranes and Kalmar was rejected, but both companies continue to thrive and maintain their position as competitors in the mobile container handling market.

Thomas Francis reports…

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owards the end of March 2022, the UK Competition & Markets Authority rejected the planned merger of Finlandbased Cargotec (parent company of Kalmar) and Konecranes. The completion of the planned merger would have required approvals from all relevant competition authorities from around the world.

As a result, on 29 March 2022, Cargotec announced that the planned merger with Konecranes was cancelled. Cargotec also revealed a new, refocused strategy to drive sustainability and growth in profitable core businesses. Part of the strategy was to start planning an exit from the heavy crane business and aim to shift Kalmar’s focus towards ecoefficient mobile equipment including empty container handlers, reachstackers, forklift trucks, terminal tractors, straddle and shuttle carriers, Bromma spreaders as well as the entire Kalmar portfolio of services.

In their half-year financial report January-June 2022, Cargotec reported that the second quarter of 2022 was quite successful. According to

container

Cargotec’s CEO, Mika Vehviläinen: “Our personnel did an excellent job in a challenging operating environment, making our good performance possible. Our orders received, order book and comparable operating profit reached all-time records. Also our sales grew significantly compared to the comparison period.”

Vehviläinen also revealed that Cargotec progressed determinedly with their new strategy, after the planned merger was cancelled. In May, the company announced plans to combine the strategic business units Kalmar Mobile Solutions and Kalmar Automation Solutions.

Moving towards the next phase of Kalmar’s new journey, they would continue to drive electrification, automation, robotisation and digitalisation across the industry. “Our focus will be on solving our customers’ challenges in these areas through investments and innovation,” said Vehviläinen.

Part of the new strategy was also to exit Kalmar from the heavy crane business and in the second quarter, an agreement with China-based Rainbow Industries Co Ltd (RIC) was signed, whereby Kalmar would transfer heavy cranes’ related intellectual properties and assets to RIC. This agreement would concern Kalmar rubber-tyred gantry cranes (RTG), rail-mounted gantry cranes (RMG), ship-to-shore cranes (STS) as well as automatic stacking cranes (ASC) which are currently assembled and manufactured at

Konecranes During the entire merger process Cargotec and Konecranes remained as fully independent, separate companies and competitors. It is therefore no surprise that Konecranes, in their January-June 2022 report, also announced some interesting developments. The company reported that continued high order intake and delivery capability issues, saw their order book break (again) a new record and was EUR 2.825 million at the end of June.

But the report reflected concerns about the volatility of worldwide demand due to the war in Ukraine and COVID-19 having increased inflation and material availability concerns.

Component availability and other supply chain constraints, as well as COVID-19 related challenges, affected their revenues in all three segments of their activities in the second quarter. Eliminating the impact of price increases, sales decreased year-on-year in comparable currencies.

The report also touched on the good-overall long-term prospects related to global container handling as global container throughput continues to increase. As a result, activity remained high within ports, and Konecranes Port Solutions’ orders grew by 47.3% in comparable currencies and totalled EUR404 million, including some large projects. In addition to material availability and COVID-19 related lockdowns, sales were again impacted by timing of customer deliveries and declined 2.0% year-on-year in comparable currencies. As a result, adjusted EBITA margin decreased to 6.7%. Despite the profitability decline, project execution remained on a good level.

In August 2022, Konecranes was busy delivering two Konecranes Noell Sprinter Carriers to Global Container Terminals (GCT) Bayonne, New Jersey, USA, as part of a continuing modernisation and upgrade of equipment project.

The two Konecranes Noell Sprinter Carriers on order are of the type NSC 624 E, lifting containers 1-over-1 in a horizontal transport

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container

shuttle

role.They will reinforce the fleet of 17 Konecranes Noell Sprinter Carriers that GCT Bayonne already operates. This manually operated fleet transports containers between the quayside and the container yard, which comprises automated RMGs and manually operated RTGs, both supplied by Konecranes.

“This AGV renewal programme is a big part of how we are taking responsibility to protect the environment.The transition to purely electric drive technology gives us the opportunity to charge the AGV batteries with electricity from renewable energy sources,” said Thomas Förster, Head of Terminal Technology, CTA.

The Sprinter Carriers on order are equipped with eco-efficient Tier 4f diesel-electric drives that comply with the latest emission standards of the Environmental Protection Agency in the USA and the EU. The machines will be equipped with diesel particulate filters that greatly reduce NOx emissions and soot particles.

Their control systems are intelligent, running the diesel engine in an optimum RPM range for maximum eco-efficiency. The order was awarded back in September 2021.

The 11 Konecranes Gottwald AGVs on order are software-controlled container transporters that travel between the quay cranes and container storage yard. They have an optimised design with low vehicle weight while providing high load capacities. Their Li-ion batteries provide cost-effectiveness combined with low environmental impact. When power storage is low, they replenish their batteries by driving into any one of the 18 automated charging system (ACS) stations located around the terminal for fast charging. Delivery is expected in early 2023 and when they arrive, the total number of Li-ion AGVs on-site will be 95.

Also in September 2021, Hamburger Hafen und Logistik AG (HHLA), ordered an additional 11 Konecranes Gottwald automated guided vehicles (AGVs) for operations at its Container Terminal Altenwerder (CTA) in Hamburg, Germany. They were ordered under a frame agreement with Konecranes and are part of a long-term project to replace old diesel-electric AGVs with new ones powered by lithium-ion (Li-ion) batteries. Using advanced technology and a high level of automation, the CTA terminal in Hamburg is the world’s first container facility to be certified climate-neutral.

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Konecranes has also completed their contract with Long Beach Container Terminal for 30 additional Konecranes Gottwald Automated Guided Vehicles (AGVs). The order, which was awarded back in March 2020, also included a Battery Exchange System (BES), transponder navigation and a fence control safety system.

Before the arrival of the new units Long Beach Container Terminal (LBCT) operated already a

Kalmar received an order from the Port of Virginia for their Hybrid Shuttle Carriers for the Virginia International Gateway.

fleet of 72 lead-acid, battery-driven Konecranes Gottwald AGVs. In a separate order, Konecranes will also provide pre-engineering for a second BES that will be installed for redundancy reasons as part of the final phase of the terminal’s construction. It will have an improved design resulting from operational knowledge drawn from the initial BES. “LBCT is very pleased with the performance of our first fleet of AGVs. We will now be increasing this fleet as part of the completion of the final phase of the new terminal’s construction currently underway and scheduled to be finished in early 2022,” said Anthony Otto, President of LBCT LLC. LBCT uses the TEAMS Equipment Control System (ECS) from The Netherlands-based TBA Group (part of Konecranes) to manage travel orders, optimise routes and avoid deadlock situations in the operation of the AGV fleet. This system will be updated to reflect the expanded AGV fleet and its expanded operational range.

In June 2022, Konecranes announced it would offer the Li-ion battery Konecranes Noell straddle carrier as a system, complete with charging station. Similar Li-ion battery technology is used in Konecranes Gottwald AGVs, from

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shuttle which a large body of field experience has been drawn in terms of 24/7 operation and battery lifetime.

The battery AGV earned acceptance and became established in large fleets at major container terminals some 15 years ago.

Meanwhile, a transition from lead-acid to Li-ion battery technology occurred, which was a major leap forward. Over the years, Konecranes has accumulated a large body of knowledge about batteries and electric power management.

This knowledge has been used to introduce battery AGVs, hybrid RTGs, hybrid straddle carriers and a battery-driven forklift truck, the E-VER. Now is the time for battery-driven, large container handling machines according to Konecranes.

Kalmar orders Back in June, APM Terminals in Tangiers, Morocco, awarded Kalmar a repeat order for shuttle carriers for their next expansion programme.

The first phase of the project consisted of 42 shuttle carriers between 2016 and 2020. As a next step in the collaboration, APM Terminals selected Kalmar to deliver 23 additional units - manually-driven, semi-automated hybrid shuttle carriers. The latest batch of shuttles are in support of APM Terminals’ expansion of their newest facility TM2 in Tangiers, Morocco.

In addition, and this has been planned since 2019, APM Terminals has also completed an order for 62 Kalmar Hybrid AutoStrads for their Los Angeles facility. This unique, eco-efficient, horizontal transportation solution operating between the vessels and truck lanes has removed significant safety risks and driven faster gate turntimes for the local customers during a period of unprecedented volumes in the port.

In August 2022, Kalmar announced it was awarded a contract from the Port of Virginia for 11 Kalmar hybrid shuttle carriers. This large order is the sixth consecutive order of hybrid shuttle carriers from the deepwater port on the US East Coast.

All of the new units will be delivered to Virginia International Gateway (VIG), one of the port’s primary container terminals and capable of handling the biggest vessels in the Atlantic trade. The Port of Virginia has been using Kalmar Hybrid Shuttle Carriers since August 2015.

Konecranes now offer Li-ion batteries on their range of AGVs.

The units to be delivered will be integrated into the Terminal Operation System via KalmarOne software, complemented by professional services, maintenance and support. “Kalmar’s fleet of semi-automated hybrid AutoStrad solution will help us reduce CO2 emissions and ensure high productivity as part of our terminal modernisation initiatives,” said Jack Craig,Vice President, Global Head of Operations at APM Terminals.

Once the machines are delivered in the third quarter 2023, the port will have altogether 103 Kalmar Hybrid Shuttle Carriers in operation between their two terminals.

The new machines are a crucial next step in the Port of Virginia’s commitment to Net-Zero Carbon Emissions by 2040, and will directly replace the Kalmar diesel-hydraulic shuttle carriers that were delivered during the terminal’s grand opening in 2007.

container

“The Port of Virginia has already surpassed a 32% reduction in CO2 emissions since 2017, which is largely due to the long-term strategic decision to transition the shuttle carrier fleet to Kalmar hybrids,” said Rich Ceci, Senior Vice President of Technology and Projects, Port of Virginia.

In June 2022, Kalmar also reported orders for their Straddle Carriers including 12 diesel-electric straddle carriers to Forth Ports Limited. Seven of the machines will be operated at the London Container Terminal (Tilbury) and the remaining five at Forth Ports Grangemouth. These new units are driven by a highly efficient diesel-electric power unit and offers excellent manoeuvrability, quiet operation and easy maintenance. The spacious, ergonomic cabin and intuitive user interface improve productivity by ensuring that operators benefit from the best possible driving experience.

They also comply with the latest exhaust emission regulations. Delivery of the machines is scheduled to be completed by the end of 2022.

Earlier that month, it was revealed that Kalmar signed an agreement at the end of 2021 with NTB North Sea Terminal Bremerhaven GmbH & Co, Germany, to supply 12 hybrid Kalmar straddle carriers for their container terminal operations and that NTB complemented the order with an additional batch of 15 hybrid Kalmar straddle carriers in June 2022, bringing the order to a total of 27 straddle carriers.

“This investment in hybrid technology will help us pave the way for a more eco-efficient future at our terminal,“ said Sören Krüger, General Manager Finance and Administration, NTB. NTB North Sea Terminal Bremerhaven GmbH & Co (NTB) is one of the largest European container terminals handling over 3 million TEU annually, serving about 45 ships per week in Bremerhaven, using six berths for large ships and a container yard of more than 1 million square meters.

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supply chain

UNTYING SUPPLY CHAINS KNOTS:

US PORT INFRASTRUCTURE NEEDS P3s Gordon Feller explains the benefits and drawbacks of using P3s to finance port infrastructure…

S

ince the passage of President Biden’s Infrastructure Investment and Jobs Act (IIJA) in November of last year, ports have garnered a growing proportion of the US focus on P3s.

During the US supply chain crisis, it’s become widely understood in state capitals that port infrastructure contributes to a state’s economic development by reducing shipping time and cost, but the extent to which it does so depends on several factors, including the use of labour-saving technologies and methods for loading and unloading ships and the ability of trucks and trains to access port facilities.

Port infrastructure projects are generally very costly, potentially straining the financial capacity of state and local agencies, including quasi-public port authorities with independent bonding and taxing powers. One prime example - which the Biden team regularly points to - is located in Florida: after the Port of Miami announced plans in August, 2013 to issue $389 million in debt to finance major infrastructure improvements, Moody’s Investors Services “cut its rating to four steps above junk…citing the growing debt burden” (according to reporting by “Bloomberg Politics” on September 10, 2013).

Other challenges facing port infrastructure include competing against highways, bridges, and other types of public infrastructure for bond funds and, in the case of quasi-public port agencies, laws limiting their ability to use new funding and procurement methods, including P3s.

P3s have been used to develop and operate different kinds of infrastructure, including highways and ports. As seen from the Biden team’s vantage point, the model P3’s specific terms and conditions will vary, but most will involve the private partner in developing, maintaining, or operating the infrastructure in exchange for providing some or all the financing.

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The Biden Administration sees P3s as contracts between a public agency and a private entity to finance, develop, or operate public infrastructure, including port facilities.

They are particularly attractive to public agencies that cannot generate the revenue needed to finance large-scale infrastructure.

Within the framework of the Administration’s preferred form of P3, the private entity supplies some or all of the capital to develop the infrastructure. In exchange for the private capital, the public agency allows the private entity to operate the infrastructure and keep some or all of the revenue it generates.

Public agencies usually finance infrastructure by selling bonds to private investors and repaying them over a specified term with the revenue the agencies generate or funds which they receive from other sources.

Negotiating a P3 requires the public and private partners to sort out their roles and identify their respective risks. Risks for the public partner include higher port fees necessitated by private financing. Those for the private partner include contractual limits on the adjustments it can make to address cost overruns and revenue shortfalls.

Because P3s represent relatively new contractual arrangements for financing port projects, experts advise public agencies to proceed cautiously. Some, for example, speculate that P3s insulate the private partner from market competition and the pressure it generates to hold down costs.

They also speculate that the public partner will be hard pressed to find cost savings if tax-exempt bond financing gives way to private financing.

“Availability Payments” P3s appear to address some of these concerns. Under this P3 model, which is still relatively new in the U.S., the private partner designs, builds, finances, and operates the infrastructure as the contract requires. The public partner makes scheduled payments to the private partner as long as it meets the contract’s performance standards.

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supply chain The model’s proponents claim that it aligns the partners’ interests, but also advise the partners to proceed cautiously.

Rod Vulovic, noted ports expert and author of “Changing Ship Technology and Port Infrastructure Implications,” explains that:

The competitive advantages are top-of-mind: Port infrastructure improves a region’s competitive advantage by reducing the amount of time and money spent on storing and moving cargo until it reaches its customer.

The volume of cargo moving through U.S. ports is significant - and the U.S. Maritime Administration is tracking significant real-time growth rates for many ports.

“today’s container ship is the linchpin of cargo transportation, but it is only part of the total system which includes sophisticated shoreside terminals, intermodal extensions to inland points by rail and highway, and automated information systems that track a shipment throughout its journey”.

Port infrastructure assets have often been weakened by climate change, and by the cumulative impact of deferred maintenance investments.

Such assets generally consist of wharfs and berths for docking and securing vessels; quay cranes for loading or unloading cargo containers; rail systems for moving the containers to holding facilities; and depots where trucks, trains, and barges can deliver or receive containers for further transport.

The extent to which these components reduce shipping time and costs depend on several factors, including the depth of the navigation channels and berthing areas, the technology and techniques used to load and unload cargo, and the connections between the port and highways, railroads, and other modes of transportation.

The cargo is contained in standard-size containers and placed on a vessel specifically designed to transport them. Putting cargo in containers makes it easier to load or unload the cargo and store it for further shipment.

Before the advent of the container, world trade was a piecemeal undertaking with the land and sea segments accomplished in isolation with little coordination between various independent operations. The ship owner accepted the cargo when it arrived at the pier. Shipper and recipient alike did not expect, nor could they even envision, so-called ‘just-in-time’ service.

The value containers add to the shipping process is lost or diminished if the navigation channel is too shallow for container ships or the port cannot efficiently store and retrieve the containers for further shipment.

container

There are some other reasons public agencies are now turning to the private sector: - management and labour costs that exceed those incurred to operate and maintain comparable private infrastructure, - the need to use tax revenue to close the gap between the revenues ports generate and the cost to operate them, and - higher infrastructure costs resulting from the pressure to satisfy many competing constituents.

Despite the competitive advantages modern ports offer, governments seeking to maintain, upgrade, or develop ports or other types of public infrastructure face many financial hurdles, and a list of these was developed by Hofstra University’s economic geography professor, Jean-Paul Rodrigue:

Meanwhile, private investors are competing to acquire port facilities and other intermodal terminals, whose value has substantially increased in recent years as they emerged as key links in the global supply chains.

- funding proposals that fail to provide enough funds for maintaining transportation infrastructure and improving their performance,

Consequently, investors view such infrastructure as “fairly liquid assets with an anticipation that they will gain in value,” Rodrigue stated.

- avoiding politically driven investments that spread transportation dollars among many different projects while undermining the transportation system's overall productivity,

Because shippers and other transporters pay fees to use this infrastructure, they “guarantee a source of income linked to the traffic volume they handle.” Acquiring intermodal terminals also allows investors to diversify their holdings and thus reduce their overall risks.

- identifying how different transportation projects affect the system's performance, and - aligning government's and the private investors' timeframes for repaying bonds.

Filling the financial gap As port agencies struggle to meet these challenges, some turn to the private sector to cover the financial gap. Traditionally, the private investors purchased the bonds or other debt instruments port agencies issued to raise the capital for developing the infrastructure. The investors paid no taxes on the interest they earn, exercised little or no operational control over the infrastructure, and received none of the income it generates.

Today, many port agencies and other bond-issuing government agencies lack the financial wherewithal to issue the amount of bonds needed to develop or maintain the infrastructure.

“The level of government expenses in a variety of social welfare practices is a growing burden on public finance, leaving limited options for divesture,” Rodrigue wrote.

Benefits of P3s The list of P3 benefits are seen as numerous.

On the top of that list is the fact that a smart P3 potentially shores up a port agency’s financial capacity to develop and maintain infrastructure by incenting private entities to participate in financing and operating port infrastructure.

Historically, public port agencies separately bid the design and construction of port infrastructure, including breakwaters, connecting roads and bridges, and other components that serve many users. They also award concessions to private companies to build and operate new facilities under long-term leases or operate existing facilities under such leases.

Under a P3, port agencies issue one bid for both phases (i.e., design and build procurement), a practice its proponents claim eliminates construction delays, reduces cost overruns, and permits the use of other innovative methods.

Other procurement options include long-term concessions allowing the private entity to manage and operate infrastructure serving many users.

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supply chain

Consequently, P3s “confer a wide range of options in terms of capital allocation and respective levels of participation,” Rodrigue stated.

Limitations and Constraints There is also a list of limits and constraints created by P3s. One of the items on that list is the fact that, by expanding the range of procurement options for developing and operating public infrastructure, P3s alter the historical relationship between public agencies and private entities.

In the U.S., for example, the laws governing a port authority - a type of quasi-public agency created to develop, maintain, and operate ports - may prohibit it from sharing profits and risks with a private entity.

They may also prevent the port authority from lending funds to private entities for building port facilities or allowing these entities to set the fees for using those facilities.

In some cases, the state-level or national laws may not address the issues that arise when negotiating a P3, including these three:

- the tax-exempt status of port infrastructure developed with public funds but operated by a private entity - whether public bidding and prevailing wage laws apply to privately financed port infrastructure - the port authority's ability to condemn and convey land to private entities.

Environmental and economic factors could also affect a port authority's ability to negotiate a P3.

For example, port property often features unstable soils and fill materials or is subject to height restrictions so as to block water views - this limits the size of a project and the potential return. These and similar issues may cause the private partner to negotiate conditions that minimise its risks and maximise its returns.

The private partner’s other strategies to maximise gains and minimise risk include setting up a separate ‘special purpose entity’ (and indeed may be required to do so by its lender) that only owns its piece of the

project and has no other assets. Such an arrangement could work against the port authority by preventing any recourse to the private partner's “deep pockets.”

Lastly, successfully negotiating a P3 could also depend upon the terms and conditions a lender imposes on the private partner’s financing; the private partner’s expectations about when the authority will issue bonds and complete site improvements; and whether the private partner will agree to contractual assurances that are binding on it and its successors.

Conclusion In conclusion, despite the potential benefits, a public agency might consider other factors before negotiating an availability payments P3.

Because selecting a partner is more complex than hiring a contractor, the selection process may require more time and money.

The relatively long term of these P3s could limit the public partner’s ability to make future changes, especially if they affect the private partner's cost assumptions.

IT’S YOUR MOVE. www.tideworks.com +1.206.382.4470

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safety

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Changing dangerous goods regulations

Peregrine Storrs-Fox, Risk Management Director, TT Club discusses the importance of dangerous goods regulations.

I

t cannot be overstated how critical it is to maintain good practice when shipping dangerous goods. 14 July 2022 sees the passing of the tenth anniversary of the fateful Atlantic crossing of the MSC Flaminia that cost the lives of three seafarers and resulted in extensive damage to cargo and the ship.

The forensic investigations and litigation that followed the Flaminia incident demonstrate the complexity of shipping dangerous goods through the maritime supply chain in terms of regulation, practices and expectations.The 2018 judgment in the liability phase of the litigation provides excellent analysis of logistics workflow and is recommended reading for that alone.

The court determined that the shipper had failed to take account of the nature of the cargo and the specific circumstances of this shipment. Equally, it found that the NVOC had failed to act on the extensive information available from the shipper and specifically did not disclose key information about the cargo to the carrier.

‘Orange Book’) is a lengthy one and these changes took several years to become mandatory. Worryingly, TT Club was alerted at the end of 2021 that the subject commodity was still being declared incorrectly under the previous Class 9 UN Number.

Following this reasoning, both the shipper and NVOC were found strictly liable under US Carriage of Goods by Sea Act (COGSA).

The matter remains subject to appeal, unresolved ten years on, displaying one of the long-tail consequences of such incidents.

“Errors, misunderstandings, mis-declarations and inadequate packing and securing lie at the heart of many significant incidents”

Regulation responds to incidents Aside from the litigation, there were lessons learned from this tragic incident that were subsequently incorporated into the relevant regulations, the International Maritime Dangerous Goods Code (IMDG code).

Errors, misunderstandings, mis-declarations and inadequate packing and securing lie at the heart of many significant incidents, both at sea and in storage facilities. As ultra-large container ships have continued to increase in size - the largest currently more than three times the capacity of Flaminia - the potential for economic, human and environmental impacts rise in proportion.

In two iterations of IMDG, new UN Numbers were created for this type of product, within subdivision Class 4.1 for polymerizing substances, followed by additional requirements for cargoes classified in this way to be transported under temperature control. However, the process of amending the IMDG Code (and related United Nations Recommendations on the Transport of Dangerous Goods, commonly known as the UN Model Regulations, or

IMDG Code 101 The IMDG Code was initially developed as an international code for the maritime transport of dangerous goods in packaged form approaching six decades ago. The aspiration was to improve practices, enabling the safe

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safety carriage of dangerous goods and mitigating the risks of disasters, injuries, loss of assets and environmental damage. Furthermore, training for all those involved in entering dangerous goods cargo into the maritime supply chain has been mandatorily applicable since 1 January 2004, under the Safety of Life at Sea (SOLAS) Convention.

Since its initial introduction, the IMDG Code has been updated on a biennial cycle to maintain pace with the ever-changing needs of the industry as well as responding to the lessons learned from incidents. Amendments to the IMDG Code typically originate from two sources: proposals submitted directly to the International Maritime Organization (IMO)

by Member Governments or industry bodies with consultative status, as well as amendments to take account of changes to the UN Model Regulations, which sets the basic requirements for all transport modes.

Needless to say, ensuring compliance with the latest mandatorily applicable version of the IMDG Code is essential as a minimum standard for all those shipping dangerous goods by sea. Indeed, the Flaminia judgment even made clear that the regulations merely set the baseline, an important statement for any entity or individual inclined to rely solely on the ‘letter’ in relation to consigning dangerous goods.

Revised ‘Book it Right, Pack it Tight’ Recognising the importance of getting it right, TT Club has again teamed up with UK P&I Club in order to support all participants in the maritime supply chain in publishing a detailed guidance document on the IMDG requirements - ‘Book it Right, Pack it Tight’.

This version of the guidance reflects the updates in Amendment 40-20 of IMDG, which has been available to be applied voluntarily since 1 January 2021, but became mandatory from 1 June 2022.

“Book it Right, Pack it Tight is intended to support shippers, forwarders, shipping line booking personnel and those who pack dangerous goods into CTUs” The ‘Book it Right, Pack it Tight’ publication provides key insights for all participants in the freight supply chain responsible for preparing unitised consignments of dangerous goods for carriage by sea.

The guide is intended to support shippers, forwarders, shipping line booking personnel and those who pack dangerous goods into cargo transport units (CTUs) in the technical aspects of the IMDG Code. The aspiration is to influence behaviours and levels of compliance by assisting all involved to understand their own duties and the duties of their contractual partners through the global supply chain.

container

The guidance is split into two parts...

Part A of the guide breaks down the process of preparing and booking the cargo into practical steps and explores the roles and requirements of those involved in each step: Step 1: Classification of dangerous goods Step 2: Selection of packaging Step 3: Marking and labelling the packages Step 4: Preparing the transport document for booking with the shipping line Step 5: Applying the segregation rules Step 6: Packing the cargo transport unit Step 7: Producing the cargo transport unitpacking certificate Part B provides background information to the IMDG Code, classification and references to further materials.

Cargo integrity matters Closely related to the issues specific to dangerous goods are the broader issues of packing cargo in general. While the IMO / ILO / UNECE Code of Practice for Packing of Cargo Transport Units (CTU Code) remains non-mandatory international law, it is clearly referenced from the IMDG Code.

Equally, ‘Book it Right, Pack it Tight’ refers to the CTU Code as the definitive industry code of practice on how to pack and secure cargo of all types in cargo transport units, imploring all operators to adopt the principles therein, thus improving operational practices.

For further information on this, look at TT’s cargo integrity resources.

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engineering

port construction

Port construction round-up

Claire Instone reports…

T

his issue’s port construction feature reports not only on plans for new ports and terminals but news of investments being made in order to see old structures and facilities revamped and brought up to scratch. Considerations are being made on numerous sites that are old and ‘behind the times’ in terms of their offerings.

Discussions are taking place on the rebuilding of Tin Can Island Port, TNPA are putting R16.1 billion into infrastructure development at various ports, and in Russia, reconstruction of infrastructure facilities at the seaport of Korsakov are in the design phase.

As well as facilities due to rise from the ashes, we also take a look at myriad initiatives around the globe that have received funding for expansion, recently opened for business, awarded major contracts and those that have plans in the pipeline.

34 World Port Development July/August 2022

Funding for expansion * The Port of New Orleans in the US has confirmed it was allocated nearly USD97 million by the Louisiana Legislature during the recently-completed 2022 session to help pay for its new container cranes, design a critical road in St. Bernard Parish and bolster funding for several of its other expansion projects. Port officials said the money, which was part of a broad expansion of state funding for infrastructure projects across the state, will be put towards growing its existing upriver container and cold storage terminals.

It will also be used to build a road in St. Bernard Parish that is a crucial part of the infrastructure for the proposed USD1.5 billion Louisiana International Terminal, the downriver container port being built in Violet. Brandy Christian, CEO of Port Nola and the New Orleans Public Belt Railroad, said the work will help New Orleans compete with ports like Los Angeles.

“These projects will position Port NOLA to take full advantage of current cargo opportunities, including serving as an alternative gateway to the West Coast,” she said in a prepared statement. USD30.5 million of state money was allocated to finish the rehabilitation of the antiquated St. Claude Avenue Bridge, which is vulnerable to bottlenecks.

Moreover, the existing upriver Napoleon Avenue Container Terminal Container Crane Expansion Project got a further USD8.1 million.

Those funds will be used to complete the installation of four new container gantry cranes that move cargo to and from ships.

The cranes arrived in December and are expected to be operational shortly.

Also, just under USD8 million of state money will go toward the USD49 million expansion of Port NOLA’s Jourdan Road Cold Storage Terminal, which will allow it to nearly double in size to 304,000 square feet.

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port construction chain solutions provider, is to package logistical services for our customers and bridge any existing gaps in the market. Facilities like these will enable us to make deeper inroads into the Kingdom, by extending our collaboration with leading logistical service providers.”

DP World signed a new concession agreement with Mawani in April 2020 to continue operating and managing the South Container Terminal at Jeddah Islamic Port for the next 30 years, committing to invest a total of more than SAR 3 billion (approx. USD800 million) to expand and modernise the terminal.

The overhaul project, which will take place over four phases and is set to be completed by 2024, will see infrastructural upgrades, including the broadening of draught depth and quay, and the installation of advanced equipment and technologies, automation and digitalisation programmes, in addition to decarbonisation initiatives. When complete, the revamped terminal will double Jeddah Islamic Port’s container handling capacity from 2.5 million TEUs to 4 million TEUs.

* DP World and the Saudi Ports Authority (Mawani) have announced the signing of a 30-year agreement with an investment value of more than SAR 500 million (approx.

USD133 million) to build a state-of-the-art, Logistics Park at the Jeddah Islamic Port.

The 415,000 square metre purpose-built facility will bolster DP World’s footprint in the region and will bring pioneering multi-modal logistics solutions to the Kingdom of Saudi Arabia. The agreement aims to establish the logistics park with an in-land container depot capacity of approximately 250,000 TEUs and warehousing storage space.

Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, commented: “We are committed to enhancing the role and the status of Jeddah’s Islamic port, which is strategically located on the Red Sea and has historically played a pivotal role in facilitating the movement of trade between the East and the West. A key part of our strategy as an end-to-end supply

* The Port of Tallinn in Estonia is set to invest up to €53 million (approx. USD56 million) to build a new quay to service wind farms in Paldiski South Harbour. Due to the favourable location of Paldiski South Harbour, the construction of the new quay will create preconditions for Port of Tallinn to become an important partner in the construction and subsequent maintenance of offshore wind farms in the Baltic Sea region.

engineering

of a brand-new quay at Frihamnen Port.The new quay at Frihamnen Port opened on 21st June.

The site was previously the location of the container terminal, which moved in 2020 to the newly built freight port hub, Stockholm Norvik Port. The move of the container terminal provided new opportunities for the container business to develop, but also opened up space for a brand-new cruise quay in the heart of Stockholm.

The new quay is 330 meters in length and is surrounded by ample space for efficient traffic flow, such as the arrival and departure of buses and taxis. The new quay is particularly suitable for turnaround calls, where a lot of space is needed for passengers checking in and checking out.

Another investment that Ports of Stockholm has begun is to provide cruise quays with onshore power connection facilities for the cruise ships. Next year the first facility for cruise ship onshore power connection will come into operation at the city centre Stadsgården quay. This is a joint initiative together with other Baltic Sea ports and is an important part of the ongoing environmental work towards sustainable cruise tourism. * In the States, JAXPORT contractors have completed the final phase of USD100 million in berth enhancements at the SSA Jacksonville Container Terminal (JCT) at JAXPORT’s Blount Island Marine Terminal. The last stage of the project, the rehabilitation of 700 linear feet of deep-water berthing space, was completed at the end of June in coordination with the recently completed Jacksonville Harbour Deepening Project.

Co-financed by European Commission in the amount of €20 million, the investment will go to a new 310-meter quay with a 10-hectare area beyond the quay. The new quay will ensure the capacity of the port to receive high-draught special-purpose vessels for the construction of offshore wind farms and the transport of wind turbine components.

The large rear area beyond the quay allows various preparations for the manufacture and storage of generators and wind turbine blades before being loaded on a ship. Moreover, the new quay can be used to service ro-ro vessels if required. The works are cited to be finished in the summer of 2025.

The SSA JCT now features a 47-foot channel depth with 2,400 linear feet of newly rebuilt berthing space capable of accommodating two post-Panamax container ships at the same time.

The multi-faceted berth rehabilitation project began in 2016 with the installation of a highvoltage electrical system equipped to power up to 10 state-of-the-art environmentally friendly container cranes, including three already in use and an additional three currently on order by SSA Atlantic.

Open for business * Ports of Stockholm is one of the world’s largest passenger ports and Stockholm is a very popular cruise destination. Now the possibilities for cruise ships to call at Stockholm have increased with the opening

Subsequently, the berths were reconstructed in a series of four phases. “This project significantly enhances our deep-water berthing capabilities at Blount Island, maximising the efficiencies created by the deepening project,” said JAXPORT CEO Eric Green.

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adverts

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port construction In addition to the reconstructed berths and new cranes, more than USD72 million in phased yard improvements are underway to enable JCT to accommodate 500,000 TEUs annually.

Contracts awarded * In the US, the Port Commission of the Port of Houston Authority have awarded two of the largest contracts in its history.

The commission approved the staff’s recommendation to award Weeks Marine and Curtin Maritime Corporation contracts totalling USD430 million to complete the remaining Galveston Bay segments of the Houston Ship Channel expansion project.

“The teams recommended were the top proposers - best schedules, lowest costs and estimated NOx emissions, and most S/MWBE inclusion,” Executive Director Roger Guenther said in his report. “Nearly 32% of the contracts will go to S/MWBE companies furthering our commitment to business equity, which is a priority for Port Houston.”

According to the USACE, the Houston Ship Channel is the busiest waterway in the nation.

Port Houston’s eight public terminals and more than 200 private facilities have an economic impact of nearly USD802 billion in annual activity to the nation. * DCT Gdansk in Poland has selected contractors to begin works for the T3 expansion project. T3 will include a deep-water quay of 717 meters in length and 17.5 meters in depth. Moreover, it will have a yard area of 36.5 hectares.The contract is with a consortium of Budimex S.A. and Dredging International NV. When T3 is complete, DCT will be among the largest container terminal hubs in Europe.

The investment will involve the purchase of 7 new quay cranes capable of handling the world’s largest vessels, and 20 semi-automated Rail Mounted Gantry (RMG) cranes for the container yard. The works - including dredging and reclamation - are set to start this September and will be followed in early 2023 by the construction of the northern and southern walls, and the main berth. T3 is scheduled to open for operations by mid 2024, with full completion of the project planned for the second quarter of 2025. In its first phase, the new terminal will increase DCT Gdansk’s handling capacity by 1.7 million TEUs to a total of 4.5 million TEUs annually.

Plans in the pipeline * The US Army Corps of Engineers has announced the signing of a Chief’s Report for the New York & New Jersey (NYNJ) Harbour Deepening and Channel Improvements Study.

NYNJ is the busiest container port on the East and Gulf Coasts and the second busiest container gateway in the United States.

The Chief’s Report recommends bend widenings and channel deepening in the existing -50 feet Mean Lower Low Water (MLLW) datum channels; and in Ambrose Channel, currently -58 feet MLLW. The fleet of container vessels calling the port today include longer and deeper ships that experience manoeuvrability problems at the existing channel bends’ widths; and are depth constrained at the existing channel depths.

This causes light loading of vessels and economic inefficiencies.

Therefore New York District, in partnership with the Port Authority of New York and New Jersey, has investigated and found that it is environmentally acceptable and economically feasible to improve the existing channels.

The Chief’s Report’s recommended plan would widen all channel bends and deepen the channels from the ocean to Port Newark and Elizabeth and Port Jersey to -55 feet MLLW for current vessels calling the port and for more under keel clearance for those vessels. * According to recent reports, the United Arab Emirates is going to build a new Red Sea port in Sudan as part of a USD6 billion investment package which will include a free trade zone and a large agricultural project.

A memorandum of understanding has apparently been signed for the USD4 billion facility - a joint project between DAL group and Abu Dhabi Ports, owned by Abu Dhabi’s holding company ADQ. The new port is cited to handle various commodities and compete with the country’s main national port, Port Sudan. The project is said to be in the advanced stages with studies and designs complete. * HPC Hamburg Port Consulting together with PT Melchers Melindo Indonesia has been contracted to deliver a valued judgement on investment in development of Indonesia’s deepest dry bulk terminal. HPC and PT Melchers Melindo Indonesia, part of the international business development group Melchers, have signed a contract with the port operator PT Krakatau Bandar Samudera

engineering

(PT KBS) to provide an independent study aimed at validating the potential of extending the capacity of Krakatau International Port to handle cargo in addition to dry bulk and break-bulk commodities. Situated on the West coast of Java, the facility faces the Sunda Strait, one of Southeast Asia’s busiest marine trade routes.

PT KBS aims to maximise the potential for the port’s cargo handling ability and further develop its portfolio. The study will include market forecasts, a port operations development concept and financial analysis, which will inform the port’s plan to expand facilities for handling other cargo types. The intention is to further participate in, and benefit from the growing trade via the Sunda Strait. The contracting by PT KBS of the business development partner PT Melchers Melindo Indonesia and global port specialist HPC for this pre-feasibility study follows a Memorandum of Understanding between the three parties back in November.

Revamps in the works * In Lagos in Africa, the Federal Government is considering rebuilding Tin Can Island Port which has become weak due to its old age.

The Nigerian Ports Authority (NPA) had budgeted over N300 billion (approx. USD600 million) for reconstruction.

“We cannot build on a weak foundation. It is vital that we get these two very important ports modernised and ready to berth modern vessels. The state of the ports shows decades of neglect but it’s better late than never,” stated a ministerial representative.

The Managing Director of NPA, Mohammed Bello Koko, has also raised concern over the poor state of the port complex and had to allay the fears of stakeholders by confirming the Port Authority is already at the conclusive stages of funding options to save the port.

Options for moving forward include talks with competent multilateral funding institutions and the possibility of the Authority using a percentage of the revenue or transfers to consolidated revenue fund to fund the reconstruction of the port.

“Although the Nigerian Ports Authority has been undertaking remedial works on the quays, the time has come for a holistic reconstruction and the Authority is working with the Federal Ministry of Transportation on the most prudent funding option,” stated Bello Koko.

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engineering

port construction

* Nigerian Ports AuthorityTransnet National Ports Authority (TNPA) will be putting R16.1 billion into infrastructure development at the ports of Mossel Bay, Saldanha and Cape Town for the next seven years. The investment is part of the TNPA’s strategic repositioning of its Western Region ports to efficiently facilitate trade and create much-needed jobs.

The Western Region’s capital investment programme has an allocation of R2.2bn to the Port of Mossel Bay; R8.4bn to Saldanha; and R5.5bn to Cape Town. At Mossel Bay, some of the key capital projects include the slipway facility refurbishment, and Quay 3 sheet pilling. Projects that are spread across the seven-year period include the deepening of the port and Quay 4, as well as the breakwater extension.

At the Port of Saldanha, capital projects are already under way and include the acquisition of a tugboat, installation of perimeter-fencing and provision of bulk-power. The broader seven-year initiative includes the extension of Berth 205; berth construction of the ore expansion phase 2; as well as the refurbishment of the main breakwater and causeway rock revetment.

As for Cape Town, the facility will see the delivery of a robust R260m capital programme, comprising the procurement of a helicopter and the replacement of two tugboats. Phase 2 of the Cape Town container terminal expansion and the acquisition of 10 dry-dock cranes form part of the port’s seven-year programme.

Tuas is set on a capacity of 65 million TEUs by 2040.

38 World Port Development July/August 2022

* A recent meeting of the Minister of Construction, Housing and Utilities of the Russian Federation, and the Governor of the Sakhalin Region, has included discussions on the reconstruction of infrastructure facilities at the seaport of Korsakov. According to press reports, work on design documentation is currently underway with construction of infrastructure cited for next year. An invitation to tender was recently issued to select an organisation for the right to sign a contract on development of a design for “Reconstruction of port infrastructure facilities in seaport Korsakov” in the framework of “Logistic technopark (Korsakov port)” Phase 1. * In a recent visit to the Antwerp Port Authority in Belgium, Serbian Construction, Transport and Infrastructure Minister, Tomislav Momirovic, announced that almost half a billion euros will be invested in the Port of Belgrade in 2023. Momirovic confirmed that the investments in the waterways sector would include the river ports Bogojevo, Prahovo and Sremska Mitrovica along with investments already made in the port of Novi Sad. Bigger and better * Singapore, one of the world’s busiest ports, is backing an ambitious modernisation plan.

The facility is moving forward with a S$20 billion (approx. USD14 billion) project to construct the world’s biggest automated port by 2040 - one that will double existing space and feature drones and autonomous vehicles.

Operations began at two new berths last year, and construction is continuing on the next phase.

Located in the Strait of Malacca, Singapore is a regular pit stop on container routes that connect Asian factories to consumers in Europe.

The port handled the most trans-shipped cargo in the world in 2020. The vision for Singapore’s mega-port - Tuas - is set on a capacity of 65 million TEUs by 2040.

Once Tuas is complete, Singapore will shut all its existing capacity and relocate everything there.

The three city terminals at Tanjong Pagar, Keppel and Brani will all shut and move to Tuas by 2027, while Pasir Panjang terminal will be consolidated by 2040. * Mediterranean Shipping Co (MSC)‘s operating subsidiary has laid out plans for a USD6 billion deal with the Ho Chi Minh City (HCMC) Government to build Vietnam’s largest port in Can Gio. The city received a proposal from Terminal Investment Limited (TIL), MSC’s Switzerland-based operator subsidiary.

The plan involves a 7.2-kilometer wharf to accommodate 24,000 TEU vessels.

Overall the facility, to be located on international maritime routes, will have an annual capacity of around 10-15 million TEUs. The MSC proposal, in cooperation with Vietnam Maritime Corporation and Saigon Port JSC, looks at a seven-phase project, with the first beginning in 2024 and put into operation in 2027. The entire facility is due to become fully operational by 2040. Upon its completion, the new Can Gio Port would replace Cat Lai Port as the nation’s largest terminal.

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fenders

engineering

* The energy capacity of the fender under the worst operating conditions must be greater than the abnormal design berthing energy. * The reaction force exerted by the fender onto a vessel or structure must be less than the vessel’s hull pressure limit and fender mounting structure capacity.

Berthing factors such as angular, temperature, and velocity, need to be considered during the selection of a fender, and data should be backed up with testing documents and published in a catalog. Applying the right performance correction factors is vital to overall fender performance and enhances the lifetime of the fender, reduces maintenance costs, and lowers operational risk.

A WHOLE SYSTEM APPROACH TO FENDER PERFORMANCE

W

ith larger vessels, increased cargo volume, improved safety awareness, and tougher environmental regulations, today’s ports face significant challenges.

To accommodate regional compliances and the rapidly changing nature of the shipping industry, ports must find ways to upgrade and future-proof their infrastructure, doing so safely, efficiently, cost-effectively, and sustainably.

Fender systems are a critical part of port infrastructure, and are essential to the safety and efficiency of port operations, protecting vessels and terminals alike. Taking a whole system approach ensures high-quality fender systems optimise vessel throughput and port operations efficiently and safely in the long term.

That’s because a whole system approach to fenders - one that includes application engineering, detailed design, production, and quality control as well as installation, operations, and maintenance - will reduce construction costs, downtime, and operating expenditure.

This is in addition to contributing to more efficient berthing operations by improving turnaround times while improving overall operational efficiencies and reducing operational safety risks.

Application engineering A high level of technical expertise and application engineering is required when it comes to the design and selection of fender systems, which must be able to protect modern ports and terminals, and a wide range of vessels and high-value cargo.

During application engineering, information such as berthing data, site conditions, and environment, needs to be collected. These are assessed alongside other design criteria such as local standards, desired service life, maintenance cost, and frequency - to determine a project’s unique requirements. Once the functional and operational design parameters are determined, accurate and comprehensive application of berthing energy calculations should be made to engineer the best-fit fender solution.

The kinetic energy of a berthing vessel needs to be absorbed by a suitable fender system.

To ensure the fender system absorbs the required amount of energy in actual conditions, fender performance correction factors should be considered. When it comes to fender selection at the application engineering stage, there are two fundamental criteria:

Best-practice specification To ensure fenders are fit for purpose, they must be produced in accordance with the specifications of a project. When supplying fenders for a project, a range of application details and fender component information, such as panels and chains, must be specified.

Fender specification should be carried out at the start of a project to ensure the right fender system is selected - one that will function as required in its intended environment.

A data-driven approach Taking a data-driven approach to fender design can improve accuracy, reduce costs and enhance port safety. Combining internal data on fenders and external data from the ports, such as berthing speeds, gives port authorities, terminal operators and consultants a clear view of how to improve the design of marine structures.

Meeting current guidelines Fender systems should be designed in accordance with PIANC’s 2002, the ASTM F2192 or British Standard Code of Practice for Maritime Structures: BS 6349, and be subject to performance and material verification testing, as well as fatigue and durability tests, where applicable. These tests ensure design criteria are met and that a fender system and its components will perform as intended.

Installation The installation of a fender system should also be considered early in the design process.

This is because the accessibility for maintenance, wear allowances and protective coatings will all affect the design and selection of the final fender system.

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Detailed fender system design Once a fender system has been selected, the detailed design must be executed and optimised by the fender supplier. This ensures that when in-situ, it delivers superior performance throughout its lifetime, from enhanced safety, lower lifecycle costs, and quicker turnaround times, through to reduced maintenance and repair, better ship stability under mooring, and increased sustainability levels.

Key considerations in best-practice design are: * Maximum reaction force * Fender components including accessories * Front panel design * Low-friction facing pads * Restraining chain design * Fastening system * Corrosion protection * Design checks * Fender system architecture Fender production and quality control If the correct fender system is selected during application engineering and is then correctly designed, the procured fender should perform as required in its intended environment.

However, it is vital that all parts of the fender system are produced according to their relevant manufacturing standards. To guarantee the performance and durability of a fender system over its lifetime, there are three crucial factors that must be considered in relation to production.

Quality of materials Understanding how the material composition impacts the quality and durability of a fender system is critical. If poorly designed or made from low-grade materials, the performance and longevity of the whole fender system will be compromised, including the fender, the front panel, the low-friction pads, and accessories.

Comprehensive material testing is therefore needed to ensure the accuracy of compounds used throughout the manufacturing process.

Manufacturing process Building and curing processes have a significant impact on the final performance of rubber fenders and therefore the overall fender system.

It is important to determine a manufacturer’s expertise and capabilities in these areas and to understand how the different processes affect fender performance.

Independent quality and performance verification Fender system projects involve sizable contracts and budgets - there is too much at stake to allow manufacturers to serve as their own regulators.

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In order to ensure objective, trustworthy results for marine fenders, performance verification testing must be conducted in an independent laboratory or by an independent company with its own testing equipment, which works independently of the manufacturer.

This will remove any uncertainty and enable end-users to have confidence that the lifecycle and performance of fenders meet specifications, and that the fenders are fit for purpose.

Fender system installation, operations, and maintenance Correct installation of a fender is vitally important to its performance. When installation is considered early - as part of a whole system approach to fender design - fender systems can be produced to perform optimally in a specific environment. This increases the lifetime of the fender system, reduces downtime and maintenance, and supports safe, continuous operations. Installation and commissioning support should be provided by the fender supplier. This includes installation, training, manuals, oversight, and supervision.

Regular inspection reduces overall maintenance requirements. Leading suppliers have the experience and skills to provide support with on-site supervision, as well as regular fender system inspection and make recommendations on maintenance.

This increases a fender’s longevity, reduces operating expenditure, and ensures the fender system performs as intended over its full product lifetime. Sustainability is also an increasingly important consideration.

All photos courtesy of Trelleborg

A low-cost fender - made from low-quality materials - will have a shorter lifespan than a high-quality fender. Since rubber is hard to recycle, the selection and design of rubber fenders can have a significant environmental impact on a port’s sustainability credentials. High-quality products with a longer lifetime significantly reduce replacement to support sustainability.

To help address the challenges fender systems face in the demanding environments in which fender systems operate, the supplier should provide a full range of after-sales services.

High-quality after-sales support incorporates repair services, tailored inspection and maintenance programmes, access to spare parts, timely technical support, on-site service and even customised training programmes.

Conclusion A high level of technical expertise and experience is required to select the most suitable fender system to safeguard berths, vessels, and port operations. Taking a whole system approach with the support of a supplier with a proven track record is vital to ensuring that this critical equipment is able to facilitate safe, efficient, and sustainable operations.

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