Port Strategy Nov/Dec 2024 Non Subscription

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NOVEMBER/DECEMBER 2024 VOL 1024 ISSUE 6

Value of DEI Data | AGVs Growth & Innovation | Pilot Boat Progress

GRAIN: POLITICAL RISK RESURFACES BRAVE NEW WORLD: MAERSK & MSC DURBAN TRUTHS TOLD PORT CALL IMPETUS

PORTSTRATEGY INSIGHT FOR PORT EXECUTIVES

The international magazine for senior port & terminal executives EDITORIAL & CONTENT Editorial Director: Mike Mundy mmundy@portstrategy.com Features Editor: A J Keyes keyesj186@gmail.com Consultant Editor: Andrew Penfold andypenfold@yahoo.com

VIEWPOINT MIKE MUNDY

Human Factor has to be Acknowledged Don’t forget the human factor. Don’t let the blitz of techno innovation – digital and equipment – impair your vision about the importance of the human being whatever level he or she is working at.

Current thinking regarding User Experience (UX) and an assessment of the role improved data can play with respect to diversity, equity and inclusion confirms this

The big topics in our industry are invariably business prospects, opportunities and system advances – equipment and digital. It is surprising how often the human factor is overlooked or just receives scant attention.

It is thus somewhat refreshing that as 2024 draws to a close we are able, in this issue of PS, to put two people-based subjects under the spotlight – Enhanced User Experience – UX (p28) and the Value of Diversity, Equity and Inclusion (DEI) data (p30).

Enhanced USER Experience does involve technology but the central point about this is that it involves a shift from simple functionality to designing intuitive systems tailored to user needs. At the centre of things is the human factor with the new technologies arriving on the scene contributing to this – Application Programming Interface connectivity, virtual assistants, predictive analytics, AI and so on. There is a consensus of opinion that suggests companies that lead in this area will ultimately achieve improved customer satisfaction and gain competitive edge.

Who can afford to ignore this?

With DEI, Heidi Heseltine, Founder of Diversity Study Group, makes the point that the port and terminal industry has made massive strides in leveraging operational data but it still lags behind other sectors in recording and utilising anything related to diversity, equity and inclusion.

This is a sad situation.

I am sure the majority of PS readers will be familiar with individuals who have faced problems in these areas and who have found them extremely hard to resolve. Non-acceptance of diversity and noninclusion remain quite common but without trend data to judge the facts against are very difficult to prove. If things are really bad what usually happens is the individual leaves the company concerned, even after union or human resources support.

Things need to change and leveraging data can be a useful contributor to this.

In conclusion, this is the last issue of PS prior to Xmas and New Year, enjoy the holidays and let’s hope 2025 is a stable, healthy, prosperous and generally rewarding year.

For the latest news and analysis go to www.portstrategy.com

Regular Correspondents: Felicity Landon; Stevie Knight; Ben Hackett; Peter de Langen; Charles Haine; AJ Keyes; Andrew Penfold; Oleksandr Gavrylyuk Johan-Paul Verschuure; Phoebe Davison Production David Blake, Paul Dunnington production@mercatormedia.com SALES & MARKETING t +44 1329 825335 f +44 1329 550192 Media Sales Manager: Daniel Spicer dspicer@mercatormedia.com Marketing marketing@mercatormedia.com Chief Executive: Andrew Webster awebster@mercatormedia.com PS magazine is published bi-monthly by Mercator Media Limited, Spinnaker House, Waterside Gardens, Fareham, Hants PO16 8SD UK t +44 1329 825335 f +44 1329 550192 info@mercatormedia.com www.mercatormedia.com

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NOVEMBER/DECEMBER 2024 | 3

Making every move count..

Kalmar.

kalmarglobal.com

sis

om/enews

CONTENTS portstrategy.com

NOVEMBER/DECEMBER 2024 VOL 1024 ISSUE 6

Value of DEI Data | AGVs Growth & Innovation | Pilot Boat Progress

NOVEMBER/DECEMBER 2024

NEWS

FEATURE ARTICLES

17 Kwinana Takes Shape

22 Brave New World

Fremantle replacement moving

17 MSC Takes Wilson Sons…

…as “Satisfaction” noted

19 New Douala Terminal

GRAIN: POLITICAL RISK RESURFACES BRAVE NEW WORLD: MAERSK & MSC

Funding secured

DURBAN TRUTHS TOLD PORT CALL IMPETUS

19 Clean USA Ports

On the cover This issue takes a deep dive into world grain trade and unveils an uncertain future, aggravated principally by Russia’s aggressive war with Ukraine. The concern now is not vessel safety carrying export grain shipments out of Ukraine but the recent increase in targeting Ukraine’s major grain ports – there have been a number of damaging strikes. This has not yet prompted major investments in grain export capacity elsewhere, there is no contingency plan but the recent heating up of events suggests it might be a wise step

GreenPort magazine is a business information resource on how best to meet the environmental and CSR demands in marine ports and terminals.

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Improved maritime safety

11 Tideworks Technology Launch

Data Platform streamlining

13 Proof of Value

Wave BL from MSC

25 Durban Truths Told ICTSI’s Chairman & CEO has told some ‘home truths’ as to what lies behind Maersk/ APMT’s legal challenge regarding Durban Container Terminal 2

26 Port Call Impetus

Getting vessel movements between ports right is a key part of the efficiency jigsaw

28 Enhancing the User Experience

Advent eModal charts the benefits

13 Maritime Single Window

30 Value of DEI Data

15 Trelleborg Software Donation

32 AGVs: Growth & Innovation

17 Supporting the Transition

35 Land of Opportunity

Implementation in Georgia

EU onshore power funding

REGULARS

The Congress is a meeting point that provides senior executives with the solutions they require to meet regulatory and operational environmental challenges.

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11 OCEAN Final Phase

Maritime Pilots Institute gain

is a proud support of Greenport and GreenPort Congress

Online portstrategy.com 5 Latest news 5 Comment & analysis 5 Industry database 5 Events Online Social Media links Weekly E-News portstrategy.com LinkedIn Sign up for FREE at: 5 Latest news PortStrategy 5www.portstrategy.com/enews Comment & analysis portstrategy 5 Industry database YouTube 5 Events

Wide-ranging funding awarded

Maersk & MSC operating plans

19 The New Yorker

Election: Full Steam Ahead

19 The Analyst

Social Media links LinkedIn Decoupling Between PortStrategy Trade Blocs? portstrategy YouTube

21 The Economist

Social MediaSwinging links to Starboard LinkedIn PortStrategy 21 The Strategist portstrategy YouTube The “Dark” Fleet

Timebomb

50 Postscript

Uncertain container shipping prospects

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A bigger role to play?

Key to efficiency and decarbonisation

Logistics in African mining

36 Political Risk Resurfaces

Global food security concerns are rising

39 Pushing Boundaries

Pilot boat design is The in Congress is a meeting point that provides senior an era of advancement executives with the solutions require to meet regulatory with the all-electricthey and operational environmental Stay in touch at boat arguably beingchallenges. the greenport.com pinnacle of this

The Congress is a meeting point that provides senior executives with the solutions they require to meet regulatory and operational environmental challenges. Stay in touch at greenport.com

The is a executives meeting JoinCongress leading port point that provides senior in Athens, Greece from executives with the 14-16 October 2019solutions they require to meet regulatory www.greenport.com/congress and operational environmental challenges. Stay in touch at greenport.com

42 Back to the Future Kalmar & Konecranes – strategies unveild

Join leading port executives in Athens, Greece from 14-16 October 2019 www.greenport.com/congress

Join leading port executives in Athens, Greece from 14-16 October 2019 www.greenport.com/congress

NOVEMBER/DECEMBER 2024 | 5

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PORT & TERMINAL NEWS

KWINANA PORT PLANS TAKE SHAPE Plans for a new container port at Kwinana in Western Australia have been announced by the Western Australia State Government, with operations potentially commencing by the late 2030s.

A commitment of A$273 million has been confirmed to initiate detailed project planning, which will include risk assessments, land acquisition, and design finalisation. Total project costs are currently estimated at A$7bn (US$4.6bn).

Fremantle’s two existing container terminals are currently handling 800,000TEU and offer a combined maximum annual capacity of 1.4 million TEU. However the state government is projecting container traffic will exceed 3 million TEU over the

Sudan Deal Stop

next 50 years and as the current port location cannot be expanded, a long-term alternative option is needed.

■ Plans for the long-term replacement of the Port of Fremantle – Kwinana Port – have been announced

MSC FIRMS UP BIG BRAZILIAN INVESTMENT….

London-listed Ocean Wilsons Holdings has confirmed it is selling its 56.47% interest in Brazilian port and maritime logistics operator, Wilson Sons, to Mediterranean Shipping Co (MSC) in a deal worth US$768 million.

The deal remains subject to regulatory clearances, but both parties are seeking completion

in the second half of 2025, whereupon MSC subsidiary SAS plans to acquire the remaining shares under the same terms.

There has been intense speculation over the sale of Wilson Sons for some time and this deal will greatly increase MSC’s logistics footprint in Brazil, after previously acquiring regional container

shipping operator, Log-In Logistics, at the end of 2021.

The Wilson Sons portfolio includes the Tecon Rio Grande container terminal in Rio Grande, Rio Grande do Sul, and the Tecon Salvador container terminal in Salvador, Bahia, while it also operates the largest tugboat fleet in Latin America.

…AND HIGHLIGHTS RECENT POSITIVE ACTIVITY Soren Toft, CEO, MSC, has commented positively about the company’s recent activity. “Our new East/West Network is a significant milestone. Launching in February 2025, this standalone network will offer unmatched agility and connectivity, enabling us to respond quickly to client demands and market shifts. With direct port pairs and increased operational flexibility, we are set to deliver even greater value to our customers,” he explains.

He also references recent investments: “We received EU clearance for our 49.9% acquisition of HHLA in Hamburg…. MEDLOG’s acquisition of Maritime Group in the UK enhances our inland logistics capabilities, connecting key rail hubs to distribution centres and broadening our service offerings,” before confirming completion of the acquisition of

BRIEFS The military-led government in Sudan has cancelled a US$6bn deal with the UAE over allegations that the UAE is supplying weapons to the Rapid Support Forces (RSF), a militia involved in the country’s civil war. In December 2022, Abu Dhabi Ports and the Sudanese company Invictus Investment signed an agreement to build and operate Abu Amama port, which is located 200km north of Port Sudan. The deal included a free trade zone, agricultural projects, and improved roadways.

Brazil PPP Plan

Brazil’s port privatisation plans look set to accelerate.

The Government has confirmed an intention to auction off 35 terminals, with 22 facilities scheduled to be made available before the end of 2025. Amongst the proposed sales are a new terminal at Itaguaí and a container facility at the port of Santos. This news follows CMA CGM taking a 48% stake in terminal operator, Santos Brazil, and MSC reportedly set to acquire major Brazilian port and maritime logistics operator Wilson Sons.

Hedland Dredge

42% of the shares in Clasquin, to reinforce activities of AGL (Africa Global Logistics) and expanding the company’s footprint in cold storage.”

At the same time, “satisfaction” with activities at Gioia Tauro is also acknowledged by Toft. By the end of September 2024, the port recorded container throughput of 3 million TEU, with a projected 4 million TEU for 2024 overall.

“Key improvements have been

For the latest news and analysis go to www.portstrategy.com

■ Gioia Tauro has recently completed a major equipment upgrade

made in port infrastructure, quay and landside equipment, personnel growth, and volume capacity,” stated Andrea Agostinelli, Port Authority President for Autorità di Sistema Portuale dei Mari Tirreno Meridionale e Ionio (Port System Authority of the Southern Tyrrhenian and Ionian Seas).

Jan De Nul has commenced dredging at Port Hedland, Australia. A total of one million cubic metres is being dredged to establish a deeper access channel, a swing basin, and two berth pockets to accommodate a range of vessels, including bulk carriers, tankers and ro-ro ships. An additional area of 10ha will also be reclaimed for the future Lumsden Point wharf structure.

Port Hedland is situated on the North-West coast of Australia and is the continent’s largest export port by annual throughput.

NOVEMBER/DECEMBER 2024 | 7

PORT & TERMINAL NEWS

NEW DOUALA BULK TERMINAL Afreximbank and APD-Cameroon are planning to build a new port terminal in Douala. The €210 million (US$221 million) project will be an extension of the existing Port of Douala and will consist of two bulk berths to be numbered 53 and 54.

According to the term sheet, the proposed facility will be developed in two tranches, with phase one seeing €147 million (US$155 million) of investment followed by subsequent funding to make up the remainder.

The Port of Douala is a key regional trade gateway for Central African countries and plays a strategic role in regional integration by serving as a natural port for landlocked countries like Chad and the Central African Republic.

USA: COMPREHENSIVE FUNDING FOR CLEAN PORTS In one of the final acts of the outgoing Biden administration in the US, a total of US$3bn has been earmarked for port modernisation projects across 27 US states at 55 different locations.

The White House announced that the upgrades will include electrification and batteryhybridisation of port equipment, in an initiative being called the Environmental Protection Agency Clean Ports grants.

“I’m proud to announce we’re delivering $3bn in funding from my Inflation Reduction Act to help clean up and modernise ports in 27 different states and territories, from Pennsylvania, Georgia, Michigan and beyond, including, yes, Puerto Rico,” said President Biden.

According to a White House statement, this initiative means new equipment for ports includes “1500 units of cargo handling equipment, 1000 drayage trucks, 10 locomotives, 20 vessels, shore power systems for ocean-going vessels, battery-electric and hydrogen vehicle charging and fuelling infrastructure and solar power generation.”

Interestingly, the White House announcement states that the

investment will “support an estimated 40,000 good-paying union jobs, manufacturing electrified cargo handling equipment” before adding that the new equipment will be “human-operated and humanmaintained.” Comments clearly aimed at concerns from unions and workers who see the threat of automated handling resulting in reductions of jobs.

US labour unions have traditionally offered strong resistance to the automation of

cargo handling processes in favour of retaining manual input.

This thorny subject has reared its head in union negotiations and is currently the focus of discussions between the United States Maritime Alliance, which represents the owners of East and Gulf Coast ports.

Mobile Phase IV

Edgemoor Stalled

Ore for Itaguaí

The Alabama Port Authority has commenced on phase IV of its Port of Mobile container terminal expansion.

The project will double capacity to one million TEU per annum and includes an inter-terminal connector bridge to create on-dock rail access. This expansion is being complemented by an ongoing channel deepening and widening project taking the Mobile Ship Channel depth down to 50ft.

A proposed new US$635 million container terminal plan in Wilmington (DE), USA has stalled. Plans by the Diamond State Port Corporation to develop a site two miles from the existing port in partnership with port operator, Enstructure, (which owns a large adjacent piece of land), brought a legal challenge from the Port of Philadelphia. A judge in Pennsylvania ruled that the US Army Corp of Engineers had improperly approved permits.

For the latest news and analysis go to www.portstrategy.com

■ Los Angeles is one of a large number of US ports receiving financial grants to help gain more environmentally-friendly equipment – but is the timing also targeting concerns over automation at US ports?

The Port of Itaguaí is planning to lease its ITG02 area. Located 70km west of Rio de Janeiro, the port is targeting a deal for a new iron ore terminal as part of the Federal Government’s port leasing initiative. The auction is scheduled for December 18, 2024, as confirmed by the National Agency for Waterway Transportation (ANTAQ) in a published Auction Notice (Auction No. 09/2024). The winning bidder will invest over R$3.5 billion in the project.

Morocco Move

CMA CGM has confirmed that it has taken a stake in Nador West Med container port in Morocco, located about 120 nautical miles from the Strait of Gibraltar.

This facility has long been on the radar of the government of Morocco. Work on the harbour commenced in 2016, with completion largely finished in June 2024, whereupon domestic operator, Marsa Maroc, was awarded a 25-year concession to develop and operate the 175-acre phase one facility in a US$200 million deal.

Marsa Maroc has now confirmed a partnership with CMA CGM, with the Moroccan company retaining a 51% stake in the project. The joint-venture plans to invest US$280 million by 2027 to develop a terminal with a 1.2 million TEU capacity and 762m (2,500ft) of quayside.

With a water depth alongside of 18m (59ft), the planned terminal will be able to accommodate the very largest ships in service on the AsiaEurope trades.

Morocco is also targeting a major role in renewable energy.

This is clearly a sector of interest to CMA CGM and specifically with regard to developing green bunkering hub facilities. “Our ambition is to support the country’s development, particularly in the forwardlooking sectors of logistics and alternative energies,” states Rodolphe Saadé, Chairman and CEO, CMA CGM Group.

BRIEFS DPW Silk

DP World Australia is to acquire Silk Logistics Holdings Ltd in a deal valued at A$175 million (US$115 million). Silk Logistics Holdings offers port-to-door logistics solutions and utilises a network spanning 21 logistics hubs and 25 warehouses across five states in Australia. It is also a specialist in contract logistics.

Pending shareholder approval, regulatory clearance, and standard closing conditions, the transaction is expected to be finalised during the first half of 2025.

NOVEMBER/DECEMBER 2024 | 9

MOMENTUM WHERE IT MATTERS

Building from a one-country operation at the Port of Manila in the Philippines, ICTSI has pressed forward across 36 years.

On six continents, currently in 19 countries, we continue developing ports that deliver transformative benefits.

All across our operations, we work closely with our business and government partners, with our clients and host communities: to keep building momentum where it matters, in and through ports that keep driving sustainable growth.

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www.ictsi.com

DIGITAL NEWS

OCEAN PROJECT ENTERS FINAL PHASE

BRIEFS SAAM AI Deal

The Operator-Centred Enhancement of Awareness in Navigation (OCEAN) project is entering its final phase.

Funded by the European Union and UK Research and Innovation (UKRI), this three-year initiative is targeting improvements in the navigational safety of shipping vessels.

With support from interested parties throughout Denmark, Greece, Ireland, Portugal, Spain and the UK, OCEAN has been adopting a holistic approach to a wide range of navigational safety issues, including technology,

processes and procedures, human centred design and commercial pressures.

Project objectives have included a better understanding of positive actions that can be practically implemented to improve navigational and situational awareness relating to collisions and the grounding of vessels, while also wanting to mitigate whale impacts and tracking floating and/or lost containers.

One specific development aim of the OCEAN project involves helping to bring together hazard data from all streams into a

■ OCEAN is entering its final phase, but continues to target improved maritime navigational safety

single entity to facilitate more efficient access to information for navigators as part of the European Navigational Hazard Infrastructure (EHNI).

The OCEAN initiative is also developing an app which will allow seafarers and ships’ crews to add sightings of whales or containers into a database, which can subsequently be shared throughout the maritime community on a largely real-time basis.

NEW DATA PLATFORM FROM TIDEWORKS Tideworks Technology® Inc. has confirmed the launch of its new Data Platform solution.

The Seattle (WA)-based provider of terminal operating system (TOS) solutions, says the new platform gives stakeholders access and streamlined use of their near real-time and historical data.

The Data Platform collects, cleanses, normalises and standardises data securely in near real time, while integrating with Tideworks’ core TOS solutions in order to ensure quality, accuracy, timeliness and reliability of data, boosting productivity and business value.

Key features of the data platform highlighted by Tideworks include: ● Modern Flexible Architecture:

Merges widely used opensource tools and industrystandard architecture for near real-time data movement, high availability and trustworthy data and fast development. ● 3rd Party Integration: Extensible connections allow Tideworks Data Platform to integrate easily into greater enterprise data strategies, supporting a large range of operational use cases. ● 360 View of Operations: Provides near real-time visibility into data across all Tideworks’ core TOS and terminal applications. ● Optimal Security: Isolates each customer’s data, ensuring data and intellectual property protection. ● Transparency Across

For the latest news and analysis go to www.portstrategy.com

Operational Teams: Allows terminals to present easy to understand findings to business stakeholders through a robust data catalogue. ● Secure Data Governance: Includes Tideworks Data Governance, an end-to-end metadata management solution, to securely share data from multiple sources. ● Ready to Go Dashboard: Provides streamlined management of enterprise and operational metrics in one place. User-configurable dashboards interact with commonly used KPIs and are ready to use right out of the box.

The new Data Platform is already being deployed to marine and rail operators across the US, Mexico and Latin America.

SAAM Terminals has entered into a global collaboration deal with Next Port AI to implement its platform which combines digital twin and artificial intelligence (AI) technologies. Next Port AI connects the terminal operating system (TOS) and other critical systems, while meeting industry standards, to support decision making activities in a terminal’s control room to maximise asset performance. SAAM is implementing the service in two pilot programmes across its port network.

Riga Pass System

A new digital access and pass system has been introduced throughout the Port of Riga. It means that all visitors and freight vehicles enter the Latvian port by making an appointment electronically and submitting and checking documents digitally instead of using a paper-based system. “The electronic port access system is only the first stage on the way to the comprehensive digitisation of the Port of Riga’s cargo flow,” notes Ansis Zeltiņš, CEO, Freeport of Riga.

OneStop Extension

OneStop has confirmed it is extending its collaboration with Tyne ACFS to deliver logistics solutions for its operations in New Zealand.

In the deal, Tyne ACFS is adopting OneStop’s Vehicle Booking System (VBS) at its Auckland Depot. When combined with its OneStop Modal solution’s real-time tracking and optimised workflows, this system will reportedly support efficient operations for up to 3500 TEU on-site, assuring smooth container movements and shorter turnaround times as part of supply chain efficiency and resilience.

NOVEMBER/DECEMBER 2024 | 11

LaseASTO

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DIGITAL NEWS

MSC GAINS PROOF OF VALUE WITH WAVE BL

■ MSC has taken a big step forward in its aim of achieving full digitalisation of its bills of lading by 2030

The world’s largest container shipping line, Mediterranean Shipping CO (MSC), has completed a Proof of Value (POV) project with Blockchain-based electronic Bill of Lading (eBL) platform WaveBL. The successful process was also undertaken in conjunction with Swift and participating banks including Lloyds, Emirates NBD Bank and Federal Bank Limited.

According to WaveBL, this project successfully demonstrated the transfer of a series of structured electronic document presentations (including eBLs) originated on the platform and sent to and between Swift members, and back to the platform, all as part of a Letter of Credit (LC) transaction.

MSC’s role in the process was to first issue two eBLs, one straight and one negotiable, on

the platform, which were then sent to an exporter on WaveBL, whereupon commercial documents like a packing list, invoice, and certificate of origin, were added.

The two eBLs were then sent to the advising bank by the platform over the Swift network, with the advising bank and the issuing bank exchanging the presentation between them, while WaveBL’s ledger maintained the tracking of possession and title of the contained eBLs. Consequently, the issuing bank then released the documents to the LC applicant (the importer), including the endorsement of the negotiable eBL from the issuing bank to the order of the importer on the platform.

This process can ensure that payments can be received within

hours, rather than days, and with the eBLs surrendered back to MSC on the platform the importer was able to collect the goods at the port of destination immediately.

This project clearly remains a key part of MSC’s plans moving forward, as Andre Simha, Global Chief Digital and Innovation Officer, MSC confirms: “MSC is committed to achieving full digitalisation of our bills of lading by 2030. This involves much more than streamlining processes. It embodies an ambitious vision that requires collaboration across both the shipping and finance sectors…..this collaboration represents a pivotal milestone that propels us one step closer to achieving our goals.”

PCS Guide is Go

Automated Burgas

VFPA Expansion

The World Bank and IAPH have jointly developed a new report offering a guide to setting up and operating a Port Community System. It is entitled “Port Community Systems: Lessons from Global Experience.” The World Bank states that many low and middle income countries “face technical and financial constraints” to the adoption of PCS and as a result risk “falling further behind as advances in digital technology accelerate.”

BMF Port Burgas has confirmed the introduction of Gate Automation Technology at its Advanced Container Terminal (ACT) in Burgas, Bulgaria. The terminal has undertaken the project in partnership with DSP and AllRead and is targeting the streamlining of operational processes, including Optical Character Recognition (OCR) access control through to seamless integration with its Terminal Operating System (TOS).

DSP led the integration process.

For the latest news and analysis go to www.portstrategy.com

The Vancouver Fraser Port Authority (VFPA) has expanded its centralised maritime traffic scheduling system to span the whole Burrard Inlet and to coordinate over 5000 cargo vessels in the waterway annually.

This new centralised scheduling system was developed in collaboration with DHI SeaPort OPX and incorporates advanced digital modelling to cover weather predictions and tides to deliver planning optimisation for 23 of the port’s 29 major terminals.

National Maritime Single Window For Georgia A new National Maritime Single Window (NMSW), fully aligned with International Maritime Organisation (IMO) standards, has been successfully implemented and launched in the Republic of Georgia. It was developed by Prodevelop, in partnership with Hamburg Port Consulting (HPC) and Plisk Consulting.

The introduction of this NMSW represents a major advancement in Georgia with it facilitating more efficient and streamlined communication for all maritime stakeholders, reduced paperwork, and improved operational clarity through transparent data sharing.

In addition, the Maritime Transport Agency (MTA) in Georgia is expecting this initiative to significantly elevate the efficiency and security of operations by digitising information exchange processes and eliminating redundancies.

This means that shipping agents, port authorities and other interested and participating maritime stakeholders can benefit from more streamlined workflows, thereby delivering faster and safer port operations.

The NMSW goes into operation as Georgia is moving to have another attempt at delivering a new deep-water project at Anaklia. In May this year a Chinese-Singapore consortium was selected as preferred bidder for the construction works.

BRIEFS Mawani/HPA MOU

The Saudi Ports Authority (Mawani) and Hamburg Port Authority and Hamburg Port Consulting have signed a new MOU to collaborate on innovation in port management. The arrangement will jointly-focus on innovation in port operations, port development, and workforce capacity issues. The aim is to focus on greater use of digitalisation, port AI, automated logistics, advanced data-driven solutions, and optimisation of transport infrastructure.

NOVEMBER/DECEMBER 2024 13

EQUIPMENT NEWS Trelleborg Marine & Infrastructure has donated its state-of-the-art SafePilot CAT PRO solution, SafePilot Pro Navigation software, and iPads, to Louisiana-based Maritime Pilots Institute, with the aim of enhancing training standards for aspiring maritime pilots.

The integration of these advanced tools is expected to significantly improve the educational experience, equipping trainees with cuttingedge technology for navigating real-life pilotage scenarios.

By introducing real tools used in pilotage operations, trainees gain an immersive experience through simulators and manned model-based training. These tools also enable instructors to accurately replicate real-world scenarios, allowing them to test and evaluate specific problemsolving techniques effectively.

The SafePilot CAT PRO solution is designed for applications requiring the highest positioning accuracy, such as piloting in narrow

TRELLEBORG DONATES TO MARITIME PILOTS INSTITUTE

BRIEFS Guam Making Plans

The Port Authority of Guam is planning a multiphase bidding process to replace the Port’s outdated gantry cranes.

The new procurement plan allows for the purchase of one, two, or all three cranes, subject to availability of funding, with a focus on cybersecurity enhancements and weather-resilient designs to withstand Guam’s severe climate conditions.

The current equipment is over 40 years old.

■ SafePilot PPU and software from Trelleborg offer the precision and accuracy necessary to address the evolving challenges of the maritime industry, including manoeuvring the largest vessels in the most complex and restricted marine locations

channels and confined waters.

SafePilot Pro combines professional piloting software with

portable pilot units (PPUs) to deliver situational awareness of a vessel to within one centimetre accuracy.

STS for PSA Penn

PSA Penn Terminals at the Port of Philadelphia has received its third Liebherr STS crane. The unit was designed and manufactured in Ireland.

This new STS crane features an 157ft (48m) outreach, a 60ft (18.38m) span, and a 50ft (15m) back-reach. With a lift height of 115 ft (35m) over rail and a safe working load (SWL) of 66 tonnes. The new crane complements two previous Liebherr units acquired in 2018 at the privately-owned facility.

Manaus Second Order

■ Konecranes recently invited a wide-range of customers to inspect its new-design Konecranes Noell Straddle Carrier prototype. This event was part of Ecolifting™, Konecranes’ vision to increase its handprint – meaning the beneficial environmental impact that can be achieved with its product and service portfolio – while reducing customers’ carbon footprints. The updated Konecranes Noell Straddle Carrier and Sprinter Carrier offers a modular choice of power options, with three power options to ensure zero tailpipe emissions: hybrid, battery and hydrogen. Each option is retrofittable and interchangeable, with a minimum of downtime to allow retrofitting or conversion in the future.

For the latest news and analysis go to www.portstrategy.com

Super Terminais Comércio e Indústria LTDA (Super Terminais) has placed a second order with Kalmar for new equipment at its Manaus terminal in northern Brazil. Booked in Kalmar’s Q3 2024 order intake are six Kalmar Gloria reachstackers and two Kalmar empty container handlers. All machines will have the Kalmar Insight performance management tool integrated and delivery is scheduled for Q2 and Q3 2025. In December 2023, four reachstackers, two empty container handlers and eight terminal tractors were ordered.

NOVEMBER/DECEMBER 2024 | 15

TANGER MED, THE LEADING PORT IN THE MEDITERRANEAN AND AFRICA

TRAFFIC 2023

+13,6% Overall Tonnage

122 MILLION (T)

+13,4% Containers Activity

8.6 MILLION TEUs*

+4,1% Trucks Activity

477 993

Tanger Med is a global logistics hub connected to more than 180 ports worldwide with handling capacities of 9 million containers, exports of 1 million vehicles, transit of 7 million passengers and 700.000 trucks on an annual basis. Its performance positions it today among the most competitive platforms on an international scale.

Tanger Med is strategically situated on the Strait of Gibraltar, the second crossing point of global trade, at the crossroads of major maritime routes, it is a natural transshipment hub for global logistics flow Linking Asia, Europe, the Americas, and Africa.

www.tangermed.ma

TANGER MED

EQUIPMENT NEWS

EU ONSHORE POWER FUNDING Four major ports in North Europe are set to receive strategic funding from the EU to help provide onshore power to container ships by 2030.

The ports of Aarhus, Gothenburg, Bremerhaven, and Stockholm are to receive €18.8 million from the EU fund Connecting Europe Facility for the project EU.OPS.Network. The project is in direct response to new EU regulations that will come into effect in 2030, requiring ships over 5000 gross tonnage to connect to onshore power supply (OPS), while moored, meaning electricity comes from the grid instead of through use of onboard diesel engines.

“We are very pleased that the European Commission and the CEF Committee recognise our high ambitions for the green transition…..OPS for container ships is a crucial part for all the ports involved,” says Anne Zachariassen, COO of Port of Aarhus and project coordinator.

AGVs for APMT

This view is shared by Ports of Stockholm which is expecting to connect ships to green electricity at Stockholm Norvik Port from 2027, as Johan Wallén, Marketing and Sales Manager at Ports of Stockholm confirms: “Together with the other ports in the project, we are investing in a rapid and safe expansion of onshore power for container ships to further strengthen our modern cargo port Stockholm

■ Ports of Stockholm is one of four north European ports that is to receive major funding to support the transition to onshore power

Norvik Port as a hub for sustainable transport. EU’s positive decision on funding indicates that it is a priority project for increased electrification of the transport sector with a focus on the transition of shipping.”

USA STS CRANE RETHINK REQUIRED Patrick Stafford, President of Stafford Crane Group (SCG) has been outlining the company’s plans to enter the US ship-toshore (STS) crane market in 2025.

One of the final acts from the Biden Administration ahead of President Trump returning to the White House in January 2025, is to confirm that US ports need to have the option to purchase US-made cranes for reasons of national security.

Normal process in the US for ports is to either take delivery of fully erect cranes from China or in part-assembled form from Europe and assembled on site.

SCG intends to manufacture Buy America Build America (BABA) compliant cranes for the US market.

However, this is not without potential challenges, notably any crane that is manufactured in the US requires final delivery on a specialist vessel that is subject to Jones Act provisions of the US Shipping Act – specifically, this means the cargo would have to be

BRIEFS

■ Stafford Crane Group believes that the port industry needs to accept that viable US crane manufacturing will require challenging the status quo about how cranes are designed, manufactured and delivered

carried on a US built and flagged vessel, operated by a US crew.

Here, Stafford has stated that the need for BABA compliant cranes means the industry must re-think assumptions around both crane design and transportation, and lessons can be learnt from the tower crane industry. For

For the latest news and analysis go to www.portstrategy.com

example, large tower cranes can typically have a boom length of 85m and a lifting capacity over 50t, while being designed to be moved between different locations without requiring specialist transportation equipment.

The position with container cranes is different because they are manufactured with fully welded structures but Stafford has alluded to potentially using different methods in its STS design – albeit that he suggests that the industry needs to “re-think STS crane design and embrace innovation.”

Currently, STS cranes can be regarded as bespoke products, rarely moved between terminals because the cost is too high and modifications may be needed.

SCG is keen to change this position by developing more flexible STS units that can be adapted to different facilities while offering opportunities for equipment relocation and lease financing.

APM Terminals (APMT) Maasvlakte II has confirmed it will be operating an Automated Horizontal Transport System as part of its expansion that will double terminal capacity by 2027.

The contract awarded to Konecranes includes the procurement of up to 71 Lift Automated Guided Vehicles (Lift AGVs), expanding the system to over 140 Lift AGVs, along with a third battery exchange station and virtual reality simulation software. Maasvlakte II will cover 130ha, a 2000m quay and be APMT’s largest fully automated terminal in Europe.

LHM 550 for ICO

International Car Operator NV (ICO) at the Vrasene terminal in Antwerp has purchased a second Liebherr mobile harbour crane. A new LHM 550 unit, offering a 54m outreach and a lifting capacity of up to 154 tonnes will support the 125ha facility that processes 7000 vehicles daily and project cargoes by barge.

With an e-drive setup for future readiness, the new mobile harbour crane offers increased lifting capacity and faster loading and unloading processes.

Callao Fenders

The Port of Callao’s South Terminal recently added 400m of new quay.

ShibataFenderTeam was commissioned to design, manufacture, deliver and test 22 sets of Cone Fenders (SPC 1300, G2.9), with closed-box steel panels (2300 x 4850 mm) and 40mm thick UHMWPE sliding plates, at the DP World-operated facility. The project scope also included 22 T-Head bollards with a capacity of 150 tons while ensuring the Cone Fenders offered a strict tolerance of +/-5%.

NOVEMBER/DECEMBER 2024 | 17

PSA Supply Chain Hub @ Tuas Node to network, connecting possibilities As the world’s largest transhipment hub, PSA Singapore is a key node and interchange for global supply chains, enabling the smooth and efficient flow of cargo from origin to destination, and serving as a trusted partner of shipping lines, cargo owners and public stakeholders.

Beyond the waterfront, PSA aims to develop comprehensive supply chain ecosystem solutions by leveraging physical and digital synergies with our core port operations.

Scheduled for completion by 2027 and spanning 2 million square feet, the development of the PSA Supply Chain Hub @ Tuas will be a state-of-the-art facility integrating advanced technologies and sustainable solutions to create a seamless and efficient logistics ecosystem.

THENEWYORKER BARRY PARKER

ELECTION: FULL STEAM AHEAD On “the day after”, I am hoping, along with millions of others, for some calm, after one of the most contentious election seasons in memory. Hopefully, the recent divisiveness will fade into the clouds. For me, it’s nice to be surrounded by folks who have positive things to say, and are respectful of others’ opinions.

Two weeks prior to Election Day, I encountered such a group, which included port executives, and business people, from around the States (and further abroad, in a few cases) at the annual convention of the International Propeller Club, held in Tampa, Florida. Last year, I had joined the Board of the club’s chapter in New York/New Jersey, so I was word- “automation” in this article, eager to attend. but it’s obviously on peoples’ The business around the minds), I was delighted to ports and harbors has certainly engage in person with folks who evolved since the 1920’s, when are all committed, in their own the Propeller Club came about Click to read article ways, to seeingon success at their (apparently New York here was at the Strategy online ports.

Yes, there is a competitive epicenter, or so I’vePort been told)element as ports improve with a mission of bringing folks interchanges and develop together, at that time, with a hefty infrastructure in ways that could dose of personal meetings. In snare cargo bound for/ coming this digital age (I will avoid the A-

■ “Shipping always adapts…to whatever disruption there is.”

from an extensive hinterland. But the spirit is positive; economic growth is good for everyone.

In election season, there are always articles and these days, podcasts/ webinars offering opinions of how the election results will impact the shipping

and maritime businesses.

Though I’ve written a few such articles (reluctantly- I should add…but always losing out to editors’ insistence), I am not sure about there being any profound impacts depending on the election results. One shipowner said at a recent Capital Link conference (and I quoted him in an article), “Shipping always adapts…to whatever disruption there is”. I would offer a similar nugget re the operations around ports; there is a common interest in keeping cargo moving and enhancing its movement.

Increasingly, the ports have done a good job communicating this to legislators up on Capitol Hill, who, in turn, are hearing the message. Indeed, at the Propeller Club gathering, a member of Congress representing the Tampa area, already quite familiar with matters in the port, was walking around and listening carefully.

So, to sum it up, the mood at the Propeller Club confab, indicative of the ports’ mindset, was full steam ahead. That bodes very well for the years ahead.

THEANALYST PETER DE LANGEN

The policy logic and consequences of decoupling the Chinese and US economy is increasingly discussed.

And such discussions may increase further with Trump as next president of the US. Some decoupling of both economies can already be observed, as both countries seem to be keen to reduce their interdependence. This has led to ‘friendshoring’: several studies have found that intra-bloc trade has been growing faster than inter-bloc trade. Further decoupling between China and the US may be expected.

However, the picture in Europe is less clear. Contrary to the

DECOUPLING BETWEEN TRADE BLOCS? THE IMPLICATIONS FOR PORTS the economic & financial crisis in US, no decoupling has taken 2008/2009. place, at least if measured by All of this suggests maritime the importance of China as a freight volume growth will trade partner of the EU. Such be very moderate, if at all. decoupling may, however, be Furthermore, trade growth can on the horizon, partly because be expected to vary between of trade conflicts especially partner countries, with most of regarding electric cars, and here to read article onwith partners the growth arising partly becauseClick of the gradual in the same ‘block’, for Europe recognition in EuropePort of the Strategy need online probably most importantly for increased strategic autonomy.

This emerging picture has led to Turkey and Morocco. Trade a lower share of intermediates prospects with the US are more in global trade, as commodity uncertain, giving the potential chains become less trade tradefor conflict on a variety of intensive. Contrary to services topics, from regulation of tech trade, goods trade growth has companies to climate policies been lagging GDP growth since and relations with China.

For the latest news and analysis go to www.portstrategy.com

In this changing landscape, it may be worthwhile for ports to perform a kind of ‘stress test’ somewhat similar to the stress test of banks: ‘in the most adverse environment we can imagine, with a breakdown of global trade, do our investments still create sufficient value for users and society’? A positive answer is reason for comfort, a negative answer may lead to a re-think in terms of options to reduce risks, for instance through more phased approaches or including more conditions before approving major decisions.

NOVEMBER/DECEMBER 2024 | 19

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THEECONOMIST BEN HACKETT

WORLD’S LEADING ECONOMY HAS SWUNG TO STARBOARD The global economy is facing disruption as the danger of trade wars driven by the introduction of tariffs returns to threaten world trade, particularly between Asia and the U.S. and Europe.

Global politics and the global economy are on a knife’s edge trying to assess what the impact of populism in the U.S. will have and who will suffer the most. And suffer is the key word here, President elect Trump’s policy proposals are inward looking and if implemented, will lead to trying to negotiate a free trade isolationism and trade wars as he agreement. The problem with storms ahead with vicious tariffs, this is that the U.S. sees free trade especially for China as well as for agreements as something that the European Union. must benefit it, with not much The disruption that will be thought of give and take. The caused after January 20th will be Click here to read article on Office of the Trade Representative far reaching. We are already Port Strategy online is very much inward focused. Just seeing the initial impacts as ask Mexico and Canada who have European and Asian leaders are a free trade agreement but are assessing their future and trying being included in the list of to make friendly noises thinking it countries that are being might take them out of the threatened with tariffs. spotlight of trade wars. The UK is One thing we know is absolute distancing itself from the EU and

■ Bracing for the widespread impact of tariffs under the new US Administration

with tariffs, they end up with a tit-for-tat of counter tariffs which will impact global trade, causing a drop in demand as prices rise as someone has to pay the tariff which is usually the consumer.

The origin country of the goods suffers not so much from a tax on its exports but instead, a drop in demand at the destination country as inflationary pressures

are passed on to the retailers and domestic industries, thereby smothering demand. The maritime industry, particularly ports and container carriers, will be in the front line of those to feel the impact of a tariff war.

The maritime shipping sectors have overcome the loss of the Red Sea route by virtually inhaling the idle fleet and placing record breaking orders for new ships for delivery in 2024 and more in 2025.

Their thoughts of another multi-billion year of profits ahead may well be shattered as demand evaporates. We are witnessing “doomsday” demand in the U.S. as imports remain buoyant despite economic indicators suggesting that there is not much to be joyful about. The flood of ships will arrive just in time for the sharp decline in cargo volumes, which will also hit the big mega hub ports.

Overall, not a rosy picture in the disruptive state that we are entering. Time to batten down the hatches.

THESTRATEGIST MIKE MUNDY

THE “DARK” FLEET A TICKING TIMEBOMB THAT NEEDS TO BE ADDRESSED As PS goes to press the news breaks that European parliamentarians have called on the EU to impose “more targeted” sanctions against what is dubbed the “dark” or “shadow” fleet. The ageing fleet of tankers that Russia employs “that engage in illegal operations for the purposes of circumventing sanctions,” as the IMO puts it, and in the process evade compliance with safety or environmental regulations and often operate without insurance.

Specifically, in a resolution adopted on November 14, 2024, the European Parliament called for an upgrade in EU sanctions measures which will impact individual ships, their owners, operators and managers as well as related

financial accounts, banks and Russia’s war with Ukraine. But insurance companies. Even more equally important, is reducing the interesting the parliament forcefully potential for an environmental stated the case for “the systematic disaster via major oil spillages. sanctioning” of vessels transiting Already there is some evidence of EU waters without insurance and this, the media organisation POLITICO, in a joint investigation an increase in surveillance with the not-for-profit journalism activities in this respect, and organisation SourceMaterial, has particularly by drone and satellite Click here article reported at leaston nine instances of monitoring. Furthermore, MEPs to read darkonline fleet vessels leaving spillages have stated that theyPort want EU Strategy around the world in the period member states to nominate ports since 2021. These have been capable of receiving sanctioned identified by using satellite images ships carrying crude oil and LNG from the SkyTruth NGO together where cargoes can be seized with data from Lloyds List and without compensation. commodity platform Kpler.

Of course, there are strong A typical incident was the reasons for implementing this recent discovery of an oil spill course of action as a path to around 100 kilometres off the reducing the role these tankers play Scottish coastline with this in filling the coffers that fund

For the latest news and analysis go to www.portstrategy.com

extending 23 kilometres into the North Atlantic Ocean. The source of this is believed to the tanker Innova which at the time was carrying one million barrels of oil from Russia to a refinery in India.

In terms of what could happen, however, this sort of incident is small scale. There is significant potential for a much larger incident given the age of the ships involved – above 15 years and their clandestine, unregulated, operation.

Clearly, EU Parliamentarians are pursuing a correct course of action – more needs to be done to cut back both funding for Putin’s unjust war and the ticking timebomb of the potential for a major environmental disaster.

NOVEMBER/DECEMBER 2024 | 21

CONTAINER SHIPPING STRATEGY

BRAVE NEW WORLD Maersk and Mediterranean Shipping Co (MSC) have both announced new operating plans for 2025. AJ Keyes looks at their aims and asks whether Gemini is taking the industry down a blind alley, or will it actually generate super-hubs? Or is MSC’s direct call strategy a better one?

■ Maersk calls Gemini ‘the Network of the Future’ – but will it be the more successful strategy?

With the end of the 2M Alliance, the two members involved are now planning new (individual) approaches. Effectively, the end of this operating partnership is either going to generate transshipment super-hubs or prove that direct calls are a better approach. So, who is right, and does it matter?

END OF AN ERA – START OF A NEW ONE Since 2015, Maersk and MSC have maintained a Vessel Sharing Agreement (VSA), allowing the lines to use capacity on each other’s ships on certain routes between Asia-Europe, Transatlantic, and Transpacific trade lanes, to optimise operations and cost efficiency. It allowed Maersk and MSC to move more than 4 million TEU together. The VSA had a 10year term minimum and two-year notice period of termination.

In January 2023, these two container shipping companies announced that they would not be renewing their alliance come the end of their 10-year vessel sharing 2M agreement in 2025.

From the end of January 2025, Maersk is launching the Gemini Cooperation with German operator, Hapag-Lloyd. It will comprise a joint fleet, with Maersk providing 60% of the tonnage and Hapag-Lloyd the remaining 40%. The partnership is setting an ambitious target of delivering schedule reliability of 90% once the network is established.

One immediate knock on effect from the formation of this new alliance is the end of another one, with Hapag-Lloyd leaving its former partnership in THE Alliance, abandoning former Asian Partners, Ocean Network Express, HMM and Yang Ming.

This left THE Alliance searching for new partnerships to fill the gap that Hapag-Lloyd left and on September 9, 2024, the Premier Alliance was announced with Wan Hai joining THE Alliance from February 2025 and the new branding starting at this time.

22 | NOVEMBER/DECEMBER 2024

GEMINI – NETWORK OF THE FUTURE The announcement of the Gemini Cooperation signals a number of key changes to the operating approach from Maersk and Hapag-Lloyd. Table 1 provides a summary of what Maersk refers to as the “Network of the Future” which also includes: ● Network centred around 12 strategically located hubs that are jointly controlled and managed by Gemini Cooperation partners – these include eight APMT operated hubs. ● Dedicated shipping ‘shuttles’ run by Gemini Cooperation partners will serve an extensive network, complemented by feeders. This will provide synchronised connections with mainliners with the objective of halving dwell times and enabling cargo to reach the desired destination faster (although this is unlikely to result in more rapid deliveries than direct services). ● No direct services to Baltic or Nordic countries – with the assumption that Baltic states and Finland will be served by third party feeders. At the other end of the service, no direct services to South Korea or Japan. ● Fewer stops – e.g. moving a container on the current AE10 string, the service makes seven stops from Xingang to Bremerhaven, but this is changing to only three stops across two services of AE9 from Xingang to Tanjung Pelepas (where it is transshipped) onto AE5 with stops at Felixstowe before arriving at Bremerhaven. This is just one example, but highlights fewer port calls and more hub use. ● Direct connections to Asia-Europe services and US services providing much improved transit times. ● Gemini co-operations to be built around 90% schedule reliability. ● The transition from Cape to Suez will “only happen when safe to do so” and on a permanent basis, but Maersk maintains it is “prepared” for either scenario.

The alliances established by major container shipping

For the latest news and analysis go to www.portstrategy.com

CONTAINER SHIPPING STRATEGY

lines have always been regarded by the industry as “marriages of convenience” so were only ever temporary.

An obvious question to ask, is why now and why Gemini?

For Maersk there are a number of likely reasons. Concerns over a loss of market share to the likes of MSC, CMA CGM and Cosco, coupled with less investment in the largest vessel classes, are the obvious, initial takeaways.

In reality, it may also be seen as a defensive move, designed to offset (minimise) the loss of market share. The deal is being sold as beneficial to shippers through improved services.

FORMULA 1 PIT STOP The approach being taken by MSC is different, as Soren Toft, CEO, MSC (and former senior Maersk man) has been confirming across the conference circuit in Europe. “Our stand-alone, alliance-free, East-West service network gives us the operational freedom and flexibility highly demanded by the market,” he has been quoted as saying.

He has also been vocal in highlighting a need for significant improvements in outdated port infrastructure and productivity, while also better balancing the integration of needed new technologies to avoid displacing existing workforces.

MSC plans to expand its port coverage with 34 loops and over 1,900 direct port combinations. It is also investing in more than 100 ports globally, recently acquiring a stake in HHLA, Hamburg’s leading terminal operator.

“These investments will allow us to manage port calls with the precision of a Formula One pit stop,” Toft confirmed.

MSC has been increasing its fleet substantially in the past five years to be able to develop an extensive network based on direct port calls. “We want to be stand-alone. We will be in charge of our own destiny, so that we can provide the speed, agility and decision-making to our clients that we want,” the company’s leadership has also confirmed.

MSC’s aggressive newbuild strategy currently means that the shipping line can offer over 6.1 million TEU of total container capacity, representative of an estimated 20% of the global market. With the largest orderbook, there is a clear 2025 strategy of direct port calls with broad geographic coverage.

MORE QUESTIONS THAN ANSWERS As the end of 2024 approaches, there are more questions than answers for the planned new approaches in 2025, irrespective of the Gemini or MSC strategy. These include: ● Do the shipping lines have sufficient ships to make their plans work? Despite its desire to be “standing alone” MSC has still formed a VSA with the newly confirmed Premier Alliance (comprising HMM Co Ltd (HMM), One Network Express (ONE) carriers and Yang Ming Marine Transportation (Yang Ming). This new alliance is for five years from February 2025 and will help offset volumes lost by former member, Hapag Lloyd. ● For Gemini, can the nominated hubs successfully handle all planned deep-sea ships and feeder calls? ● Are there enough modern (and green) feeder vessels to handle the increased demand generated from the Gemini strategy? ● Will the planned aim (of Gemini) of gaining total integration

For the latest news and analysis go to www.portstrategy.com

Factor

Cape of Good Hope

Trans Suez

Number of vessels in combined fleet

342

300

Combined capacity

3.7 million TEU

3.4 million TEU

Mainline services

29

27

Shuttle services

28

30

East-West trade lanes included

Asia – US West Coast Asia – US East Coast Asia – Middle East Asia – Mediterranean Source: Maersk: Network of the Future

‘‘

We are scheduled for Gemini calls….but when will we know the sizes of the ships that will be calling?

Asia – North Europe Middle East – India/Europe Transatlantic Impact of technology Cargo time reduction of up to 20% Investment in APMT hubs

US$3bn for a 40% increase in capacity

Note: * = a return to the Red Sea route will be undertaken when it is “safe to do so”

for all IT across the whole hub/network work? What initiatives are there to do so? ● Will third party business now be less appealing to key hubs that are operated by sister-companies within the same organisation as the shipping line? In short, will APM Terminals have space at its hubs for any third party/nonMaersk volumes, and will other lines be keen to call – and contribute to a competitor’s bottom line?

The reality is nobody really knows yet. As one senior port executive at a leading US container port (who wished to remain anonymous) says: “We are scheduled for Gemini calls, and calls from another major line changing working arrangements, but when will we know the sizes of the ships that will be calling? At best, we used to get two weeks’ notice for vessel changes. We think it will be less and leave us little time in advance…..”

Concerns currently exist with chaotic schedules at container ports. Vessel bunching, where multiple vessels sail in the same week on the same service, has reportedly increased sharply this year already, not helped on AsiaEurope routes by the ongoing Red Sea shipping crisis. And any schedule delay simply pushes the issue along the shipping line rotation to the next port of call.

The issues are widespread. Anecdotal reports state that Singapore has seen “about 90%” of container vessels arriving off-schedule, compared to an average of about 77% in 2023.

Moreover, vessel port time at PSA has also increased by 22% compared to the same period last year, so much so that PSA Singapore reactivated older facilities for box operations and added significant manpower in an effort to play catch-up.

■ Table 1: Maersk – Gemini: Network of the Future*

‘MAGIC BULLET’ It seems clear that 2025 is going to represent the start of a brave new world indeed but one that could create uncertainty for beneficial cargo owners. MSC has a strong view that “standing alone” and direct calls is the way forward, while for Maersk the hub-based approach to be put into action by Gemini represents its own ‘magic bullet’ strategy.

Who will be successful? Ask that question again this time next year.

NOVEMBER/DECEMBER 2024 | 23

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1974 - 2024

The first ELME spreader was delivered that year.

Now, 50 years later, we are celebrating the manufacturing of more than 26,000 spreaders.

Follow us into the next half-century, with more to come.

DCT2 CONCESSION DISPUTE

DURBAN TRUTHS TOLD In round one of a legal challenge APMT/Maersk has halted the award of Durban Container Terminal 2 to ICTSI but it’s not over yet with ICTSI telling some home truths and identifying the solvency issue at the heart of APMT’s challenge as irrational Strange things can happen in concession processes – influence can be brought to bear, the result orchestrated by the timing and conditions of the process etc – but without doubt one of the strangest events is now occurring in conjunction with the concession process for Durban Container Terminal Pier 2 (DCT2).

A reportedly well managed concession process was run for 49% of the terminal by Transnet, the state-run national ports authority, with Philippines headquartered International Container Terminal Services Inc. (ICTSI) being declared the Preferred Bidder in July 2023. APM Terminals (APMT), the second placed bidder and a unit of shipping company Maersk’s Transport and Logistics Division, then made initial complaints to Transnet about the selection of ICTSI as Preferred Bidder, even though its bid was in the order of US$100 million less than ICTSI’s bid. It was not until around nine months later, however, that APMT mounted a legal challenge against the award with the centrepiece of this being the accusation that ICTSI had failed a solvency test set in the Request for Proposals, its interpretation being that this can only be looked at in one specific mathematical way.

Prior to the mounting of the legal challenge Transnet had, using the services of a qualified third party, looked at the financial capacity of ICTSI and pronounced itself satisfied that ICTSI had passed financial due diligence. At least in part this appeared to be the trigger for APMT to go legal.

‘‘

The solvency issue: Maersk is trying to question ‘a non-defined metric’ The legal action – Part A of a two-part action – came to court last September and the following month the Durban High Court issued an interdict on the DCT2 process, halting it in its tracks until the legal challenge is fully ruled on.

ICTSI is known to be applying to appeal the interdict and beyond this there is Part B of the legal action to conclude.

The clock is ticking and months are slipping by adding a substantial time period to a process that commenced in early 2022.

TIMELINE IS IMPORTANT The timeline is important. In December this year it will be two years and 10 months since Transnet launched the concession process for DCT2. It was slow even before the legal challenge but with this now in play the process will easily cross the three-year mark. The APMT challenge effectively throws the process into the long grass – halting the vital work of getting to grips with raising DCT2’s performance to the comprehensive benefit of South Africa’s economy. A point underlined recently

by Enrique K. Razon, Chairman & CEO of ICTSI, who broke silence in mid-October on the APMT legal challenge highlighting what ICTSI believes to be the real facts behind it and the ensuing negative consequences.

“Maersk has dominated the South African market since it acquired Safmarine over 20 years ago and today Maersk

For the latest news and analysis go to www.portstrategy.com

holds a dominant position and strong pricing leverage in the market. Maersk is clearly desperate to prevent the entry of an independent common user terminal operator. In short, after failing to produce a strong bid they are instead trying to delay and stop the process by using the courts,” he underlined.

He continued: “This, of course, all suits Maersk who have just as much interest in the process failing as they do in having their far inferior bid being accepted. Either outcome would be a dramatic step backward for the government’s economic agenda but a success for Maersk’s desire for end to end to end control of South Africa’s logistics system.”

In this context, it is well known that Maersk accounts for a large proportion of the berthing slots at DCT2 and that until such a time as the terminal can operate more efficiently there is little scope for new lines to gain a foothold in Durban and offer a more competitive environment to importers and exporters.

The timeline is also relevant in relation to Transnet.

“Transnet, has not acted expeditiously and has dragged its feet at the highest levels,” noted Razon. The suggestion is clear that there are parties within Transnet who are nonbelievers in a Public Private Partnership (PPP) and do not want it to proceed.

In equally damming mode, Razon said on the key solvency issue: Maersk was trying to question “a non-defined metric” that even some of the world’s largest companies such as Apple would be unable to meet, as well as numerous top 40 companies listed on the Johannesburg Stock Exchange.

Certainly, there is a good deal of agreement with this position – independent financial analysts suggest that over emphasis on one mathematical formula to assess solvency is stretching the boundaries of common sense and that there are other equally, if not more, effective ways of analysing this.

PS has had some insight into these from an independent source and all confirm ICTSI has more than adequate financial capacity to undertake the DCT2 project.

Hardly surprisingly, APMT has pushed back on ICTSI’s statements sticking by its view that compliance with the solvency metric can only be viewed one way. The scene is set for further engagement on this issue.

■ Enrique K. Razon, Chairman & CEO of ICTSI, has publicly questioned Maersk/ APMT’s motives for mounting a legal challenge to the award of the DCT2 concession to ICTSI

NOVEMBER/DECEMBER 2024 | 25

PORT CALL OPTIMISATION

PORT CALL IMPETUS Optimising vessel movements port to port and thereby maximising efficient berth usage is now a highly relevant area of attention. Mike Mundy charts the key initiatives and benefits cited

■ DP World Dakar is one of the latest companies to sign up to Portchain Connect

Thor Thorup, Chief Commercial Officer and Co-Founder at Portchain, highlights the fact that in two short years around 130 ports and terminals have signed up for its Portchain Connect system – a system which through a digital handshake aims to efficiently align berth availability with vessel arrivals on a just in time basis.

Reflecting on the formation of Portchain, Thorup states: “We saw a challenge in the interface between lines and terminals. Vessels arriving at ports out of sync with berth availability is an inherently wasteful process. If the vessel arrives too soon it can create congestion and invariably involves excessive fuel consumption and emissions. From the terminal side it was plain that vessels arriving too soon or too late posed major challenges in terms of resource planning – equipment, labour and so on – and therefore with new generation technology available and coming online we set about optimising the port to port vessel movement, digitalising the process, enhancing planning and throughout employing quality data.”

The latter element is actually key coupled with capturing all the indicators which facilitate accurately forecasting arrival time. The latter include: departure time from the previous port of call; the impact of exceptional events such as heavy weather/port closures/port congestion, accurate vessel tracking and other influential factors. Digitalising this information basically provides a highly accurate overview allowing much greater accuracy with the alignment of the timing of the vessel process. If it can be seen the vessel will arrive too soon, it can be slowed down reducing bunkers and emissions by 6 to 14% according to Portchain. Conversely, it is possible to use the information to speed a vessel up to hit a particular spot and thereby expedite vessel turnaround.

Portchain also offers its Portchain Quay module which complements its Portchain Connect product. Thor Thorup

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describes this as a planning tool employed by terminals to match terminal resources – labour, equipment etc. “it speeds up workflow,” he underlines.

GROWING INTEREST To some extent Portchain can be regarded as a pioneer in the business of optimising port to port vessel movements and thus berth usage – having drawn together all the threads that facilitate a digital handshake between ports/terminals and shipping lines.

This field, however, and allied fields can be seen to be the subject of growing interest on diverse fronts on the part of ports own initiatives focused on berth optimisation and at a wider level that of industry associations In the latter context, it is noteworthy that the Supply Chain Resilience Taskforce (SCRT) has recently released its study, Port Call Optimisation through Data Quality. SCRT points out that the rationale for the study arose out of, “The urgent need to implement The IMO Compendium on Facilitation and Electronic Business in the maritime sector and harmonising communication and the electronic exchange of operational data for port calls. The approach the study takes is an interesting one – it centres on presenting “essential findings and key insights from various in-depth interviews with port authorities and maritime stakeholders on how they implemented Just-in-Time Arrival best practices.”

The SCRT is made up of chainPort, IAPH, DCSA, tic 4.0 and IPSCA thereby offering a good cross section of views and experience. Briefly, major points highlighted in the report are: ● The need to adopt international standards and standard identifiers. It is a big task to digitalise all the data for the entire port process and the report notes that in some cases ‘data is manually submitted once a day, highlighting a mixed approach of automation and manual input.

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PORT CALL OPTIMISATION

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Among the benefits…a reduction in ‘turnaround’ (call planning time) from an average of eight hours to two hours and the ability to plan operations 3 to 4 hours ahead ● Achieving the optimal position is not always possible in the

short-term. “Integrating systems with non-standard identifiers and ensuring synchronisation of data is challenging but necessary for consistency,” the report notes. ● As best practice, the study recommends ports focus on the accuracy and reliability of real time data, and implement and synchronise key timestamps including ETA berth, ATA berth (Actual Time of Arrival) and RTD (Requested Time of Departure). ● The deduced benefits of port call optimisation are significant. Notably a reduction in “turnaround” (call planning time) from an average of eight hours to two hours and the ability to plan operations three or four hours ahead.

Finally in conjunction with the Port Call Optimisation through Data Quality report, it is worth underlining it is not just a sector report but provides some very helpful information on how to go about moving purposefully down this path. Two key aspects are: ● A seven point checklist on data quality regarding implementation of port call optimisation, and ● In the fourth chapter of the report best practices and recommendations that go beyind the topics mentioned by the interview participants. These are categorised under three main headings Data Collaboration and Standardisation, Digital Platforms and Systems and Data Quality.

INDIVIDUAL INITIATIVES In terms or recent individual initiatives in the sector, which wholly or partially contribute to berth/port call optimisation the following are particularly noteworthy: ● The Maritime and Port Authority of Singapore (MPA) has announced that it is planning to use artificial intelligence (AI) and digital twins to optimise vessel route planning to enhance safety and reduce emissions. Bottom line, the Authority states: “The aim is to achieve just-in-time arrival to reduce the turnaround time for vessels in port.” To facilitate moving towards this goal it has signed a memorandum of understanding with Microsoft and generally emphasises: “The focus lies on technologies including cloud computing, AI, data analytics, robotics and cybersecurity to develop digital and green solutions for the maritime industry.”

MPA states that together with Microsoft it will, “…codevelop digital solutions or leverage existing Microsoft products to support small and medium enterprises, focusing on demand aggregation and energy efficiency in shipping and port operations.”

Another interesting project only recently announced is the European Space Agency’s DECARDIS project (Decarbonisation through Digitalisation in Shipping). It has a powerful group behind it, Awake AI, ABB and Wallenius Marine. They will collaborate on the development of technologies to assist ships in adjusting their speed and arriving at the destination port at the right time – not early.

The goal is to eliminate fuel wasting which is also a goal of the Blue Visby project. The reported path to achieving this is by “developing an integrated an interoperable system to

For the latest news and analysis go to www.portstrategy.com

integrate decision making on ship routing and speed to achieve just-in-time arrival processes at the berth.”

The Blue Visby programme is bulk carrier focused and has recently conducted some prototype trials which confirmed double digit savings over a 10-voyage test programme.

SCRT for its part states “…the benefits of port call optimisation are significant. They include a reduction in ‘turnaround’ (call planning time) from an average of eight hours to two hours and the ability to plan operations 3 to 4 hours ahead.”

■ Vessel bunching is back and has the potential to become even more prolific

TOS INFLUENCE Terminal Operations Systems (TOS) are generally not involved in the mainstream of port to port vessel movements.

Having said that as Chad Van Derrick, Global Transformation and Innovation Leader of US-based Tideworks Technology explains, the modern TOS systems are progressively being developed so that they can contribute to this process – the use of AI, for example, to predict vessel arrival dates or digital twins to predict multiple scenarios and plan accordingly regarding the terminal’s vessel calendar.

Nevertheless, such initiatives remain largely firmly fixed on terminal resource planning which when done at the highest level can have the much-desired effect of freeing up capacity due to optimised terminal operating arrangements.

VERY RELEVANT The potential that the above referenced systems and initiatives have to optimise port to port vessel movements with allied benefits regarding reduced emissions is extremely relevant today. We have seen the huge negative impact that Covid had on orderly vessel movements, vessel bunching etc. The consultancy Sea Intelligence has recently suggested that in Asia Europe trade the same level of problem now prevail – driven by the Red Crisis and other local factors such as labour strikes.

The example of the port of Singapore is given which is said to have seen about 90% of vessels arriving off-schedule, compared to an average of 77% in 2023. Port stays are also said to have increased in Singapore by 22% when compared to the same period in 2023.

Clearly, there is a strong need to focus on port-to-port vessel movements and optimising the process. A much higher level of efficiency is required and the commensurate effort to achieve this.

NOVEMBER/DECEMBER 2024 | 27

NEW GENERATION TECHNOLOGY

ENHANCED UX DRIVES PROGRESS Harvey Bauer, Vice President of Customer Success, Advent eModal, highlights the unfolding benefits available to the logistics and intermodal sectors from new technology with a major focus on enhancing user experience (UX)

■ Enhanced UX offers a highway to streamlined operations and gaining competitive edge

The logistics and intermodal industries are transforming rapidly, with technological initiatives reshaping operations.

At the forefront of this change is an increased focus on enhancing user experience (UX), a shift from providing simple functionality to designing intuitive systems tailored to user needs. This transition is critical for technology providers that want to stay competitive and retain satisfied customers in today’s market.

Ports are embracing intuitive and optimised technology to streamline processes and enhance user interactions. Key stakeholders, including marine, rail, trucking, and logistics operators, are leading this push by leveraging software to improve operations and increase productivity. With UX becoming an integral part of port and terminal strategy, integrating technology with a user-centered approach is now essential for port businesses to maintain their competitive edge.

including appointment systems and terminal operating systems (TOS), allows users to quickly become proficient, reducing training time and improving productivity. These platforms streamline communication, enabling stakeholders to schedule appointments, track shipments, and coordinate container movements more efficiently.

Shorter queue times, reduced congestion, and greater operational flexibility are potential outcomes of effective UX design. In addition, well-designed systems can adapt to changing business needs without compromising usability, ensuring that logistics operators can easily manage complex tasks.

MODERN LOGISTICS SOLUTIONS To meet the growing demand for better UX, technology providers are continuously improving their solutions. Advent eModal’s appointment system is one example; it enhances predictability and consistency for terminals and trucking Click here to read article on companies by streamlining gate and yard operations through DEMAND FOR ENHANCED UX appointment Efficiency is paramount in the logistics sector, and this Port Strategy onlinescheduling, similar to how restaurant reservations work. The system enables operators to reduce wait times and demand is driving the need for improved UX. A well-designed increase user satisfaction. Reduced wait times not only user interface reduces errors, boosts productivity, and drives improve UX but also help lower emissions, benefiting both cost savings. As users become accustomed to interacting terminals and the surrounding communities. with advanced technology in their everyday lives, they Truck operators benefit from intuitive workflows and expect seamless, intuitive experiences across all devices instant feedback, simplifying complex tasks and offering a and platforms—including logistics platforms. comprehensive dashboard for managing appointments The prevalence of smart mobile devices and emerging across multiple terminals. consumer technologies has redefined user expectations, prompting logistics operators to prioritise software that CREATING A STRONG UX offers seamless interactions. Technology providers must While the benefits of enhanced UX are clear, improving user adapt by focusing on UX to ensure their platforms are both experience in logistics can be challenging. A unified interface functional and user-friendly, meeting the evolving demands framework, where all system components share a cohesive of users across the supply chain. user interface, is essential for improving usability. Similarly, workflow-based design—aligning user interfaces with specific ENHANCED UX BENEFITS tasks and processes—is critical for streamlining operations.

Enhanced UX offers significant benefits to the logistics and Creating a strong UX requires careful planning and intermodal industries. Modern, user-friendly software,

28 | NOVEMBER/DECEMBER 2024

For the latest news and analysis go to www.portstrategy.com

NEW GENERATION TECHNOLOGY

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While the benefits of enhanced UX are clear, improving user experience in logistics can be challenging investment in UX design, which comes with added costs.

Time constraints also present challenges, as developing superior UX often takes longer. To overcome this, providers focus on iterative software improvements based on user feedback, partnering with industry groups like trucking associations to better understand end-user needs. Focusing on strategic planning and adaptability can help companies develop more efficient, user-friendly solutions.

scheduling are just a few examples of how AI is revolutionising logistics, allowing for greater efficiency and real-time responsiveness across the supply chain.

The logistics and intermodal industries are currently driven by a focus on improving user experience through technology.

Through the integration of good UX, stakeholders can streamline operations, improve customer satisfaction, and gain a competitive edge in an increasingly dynamic market.

As the sector continues to evolve, those who prioritise intuitive, efficient software solutions will be well-positioned to thrive in the future.

■ Harvey Bauer* is Vice President of Customer Success at Advent eModal (AeM), a leading port community provider.

Harvey joined AeM in 2020 and oversees the support, relationship development and growth of AeM’s customer base. With more than 30 years of experience in the maritime industry, A NEW ERA Click here to read article on Harvey fields a unique blend of technology Advancements in UX are ushering in a new era of logistics, Port Strategy andonline operational perspectives to meet with emerging technologies such as artificial intelligence (AI) customers’ needs. Before joining AeM, Harvey and automation paving the way. In particular, AI offers held positions at Tideworks Technology and powerful tools for analysing customer trends, improving user international terminals in Colon, Panama interactions with software, and identifying areas for operational improvement. Automation will continue to grow, and Manzanillo, Mexico, undertaking a wide coordinating dual appointments for both pickup and drop-off range of roles in marketing, vessel schedules with limited user input, for example. operations, terminal operations, business Solutions will also increasingly incorporate Application development and management. Harvey Programming Interface (API) connectivity, offering enhanced has a BA from the University of automation and a more seamless user experience. Predictive Washington, where he graduated analytics, virtual assistants, and AI-powered appointment Magna Cum Laude.

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NOVEMBER/DECEMBER 2024 | 29

TAPPING TALENT TO OPTIMISE PERFORMANCE

THE VALUE OF DEI DATA Heidi Heseltine, Founder of Diversity Study Group, asks could more quantifiable information on Diversity, Equity and Inclusion (DEI) add an extra dimension in the pursuit of global talent as a path to optimising port performance?

Every day ports generate a growing wealth of information through their cargo operations — from ship berthing, loading and unloading, to yard handling, to the landside interface with trucks, rail, inland water transport and logistics processing. Harnessing all this data has transformed port performance with much success achieved in unlocking efficiency gains and cost benefits.

However, while the port and terminal industry has made massive strides in leveraging operational data, it still lags behind other sectors in recording and utilising anything related to Diversity, Equity, and Inclusion (DEI) within the workplace. This now needs to change. Don’t get me wrong, there is a great deal of ongoing work in recording industrywide workforce data and the various initiatives underway are insightful, but much more could and should be done. Both at sea and ashore, cargo handling is suffering a welldocumented and growing skills shortage. The time is now ripe for a new, data-centric approach to solving the challenge to keep trade flowing worldwide and tap into the latent talent that wants to be part of this industry.

DEI IN CONTEXT DEI is a broad field and it would be a misunderstanding to reduce it solely to numbers of women versus numbers of men. It’s about egality — ensuring that our efforts at diversity time and again how correctly gathering, expertly processing are balanced by a consequent culture of psychological and effectively utilising this information can drive safety and belonging for all. For maritime, working hard to organisational performance and workforce wellbeing. DEI redress gender imbalance in our workforce is part of this Strategy formulation, the effective use of DEI data, Inclusive process as it encourages diversity, but without inclusion we Leadership and Management learning and development are unlikely to retain these new recruits to our workforce. programmes and mentoring programmes are valuable Currently we know that women represent just 17% of port routes to embedding a strong and positive company culture workers and a pitiful 1.2% of seafarers. Although our data — helping, in turn, shows the split is improving, it’s painfully slow and underscores Click here to read article on to maintain employee wellbeing and supporting a continued level of performance and investment the urgent need for targeted action. Women in technical roles Port Strategy online in the port’s short and long term goals. actually declined last year, per DSG’s 2023 Annual Review.

The rewards reaped have equal value for employers (who As a sector, we need to devise strategies that address demonstrate positive company culture and strong issues of this nature, as well as those stemming from a wide leadership) and employees (who benefit from feeling variety of factors such as race, sexuality, language, nationality, supported at their workplaces). Additionally, these efforts age, disability, and more! It is vital that we have the right can drive recruitment and retention efforts with existing and strategies in place to embed change for the long haul — so incoming workforces. For example, our 2023 Annual Review we can unlock a goldmine of new talent and leadership for which surveyed 2,500 shoreside professionals, found that ports and their workforces.

54% of respondents said their employer could do more to achieve a diverse and inclusive workforce. This rightly sets DRIVING ORGANISATIONAL PERFORMANCE the expectation firmly on industry leaders, with a growing There is a significant amount of verifiable data, across a wide impatience for decisive measures. variety of industry sectors, which demonstrates that a diverse, It is not solely a future workforce driving the need for equitable and inclusive organisation outperforms others. change — our existing workforce is calling for improved However, despite the growing emphasis on DEI worldwide, workplace culture now. the maritime industry has been slow to adopt comprehensive data-recording practices. This is a missed opportunity.

FROM ABSTRACT TO TANGIBLE PROCESS Both onshore and at sea, surveys provide valuable insights Every port needs a proactive safety culture. A safe workforce into workforce composition and employee satisfaction, and is motivated, engaged and takes responsibility for themselves have in the past uncovered key safety issues impacting and each other. Plus, accidents reduce rapidly when people physical and mental health. Without this data, ports cannot are interdependent and communicate effectively. easily or accurately assess their current status and identify The creation of this effective workplace culture begins with areas for improvement. a systemic recording of demographic data. And, as anyone With my work at the Diversity Study Group (DSG), I’ve seen

30 | NOVEMBER/DECEMBER 2024

■ Heidi Heseltine, Founder of Diversity Study Group – identifies the need for quality workforce Diversity, Equity and Inclusion data that can feed into cross-industry benchmarking and support the creation of effective initiatives

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TAPPING TALENT TO OPTIMISE PERFORMANCE

‘‘

The time is now ripe for a new, data-centric approach to … tapping into the latent talent that wants to be part of this industry who has worked in data will tell you, understanding which factors to record, to what end, and how best to do so contributes massively to the actual quality of data gathered.

Metrics such as demographic breakdowns, gender representation in leadership roles, pay equity, and anonymised employee feedback are all valuable factors in this process.

Data by itself, while useful, isn’t necessarily actionable; but data gathered with an understanding of agreed upon outcomes can lead to tangible, workable and measurable approaches and outcomes. Interpreting this information necessitates having the right knowledge and expertise on uncovering failures in safety procedures or increasing how best to approach a challenge and successfully achieve inclusivity in specific teams. a solution.

Our shared goal is the success of our sector. Diverse teams Translating DEI data into workable programmes is perhaps bring varied perspectives, enhanced problem-solving and the toughest challenge and is where benchmarking comes foster innovation, Click here to read article onall of which can enhance operational safety. in as a valuable tool. By comparing DEI metrics against Initiatives that promote understanding, respect, and Port Strategy online industry standards, ports can identify gaps in their own collaboration among diverse teams directly contribute to development programmes and fix them. Anonymous surveys safer, more effective operations. In a port environment where could be utilised to provide raw data and benchmarking close collaboration and quick decision-making are essential, activities can then act as a roadmap for developing the ability to work cohesively is paramount — and dataprogrammes to address specific needs, whether that’s driven DEI initiatives is how we get there.

■ “…working hard to redress gender imbalance in our workforce is part of this process as it encourages diversity, but without inclusion we are unlikely to retain new recruits to our workforce,” underlines Heidi Heseltine

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NOVEMBER/DECEMBER 2024 | 31

AGV MARKET AND DESIGN

AGVs: GROWTH AND INNOVATION AGV demand for new and upgraded units is rising underpinned by design innovation with electric-powered units a key theme

■ Electric AGVs powered by Durapower’s battery system are employed with 54 AGVs supplied to PSA for use at its new generation Tuas Port

SECTOR ANALYSIS: AGVs KEY TO EFFICIENCY & DECARBONISATION The role of AGVs in ports is rapidly ramping up in the face of ever-larger container ships and terminal congestion. According to ABI Research, a global technology intelligence firm, AGV seaport deployments worldwide will have a Compounded Annual Growth Rate (CAGR) of over 26% from 2022 to 2030 and will exceed 370,000 global deployments by 2027. It singles out AGVs as being among the most productivityaugmenting solutions in seaports. AGVs are also at the heart of the drive by terminal operators to decarbonise, with increasing numbers now fully electric. As detailed below, Konecranes is delivering 116 battery driven

AGVs for the Hamburger Hafen und Logistik CTB terminal, helping the terminal operator reach its goal of carbon neutrality by 2040. The AGV is also an important part of port decarbonisation R&D, from Konecranes’ Future Fields concept, to the PIONEERS Consortium, which is aligned with the European Green Deal’s main objective to make Europe climate neutral by 2050 (see below). Another main theme is the incorporation of AI and Internet of Things technology.

Their role within AGV predictive maintenance is leading to a reduction in downtime and boosting system reliability.

DATA ANALYSIS: BATTERY POWER, COMMISSIONS AND R&D ■ Durapower: The manufacturer has commissioned 54 AGVs powered by its batteries, for operation at PSA Singapore’s Tuas Port. It has since completed testing of its 266kWh Battery Energy Storage System (BESS) with a third-party AGV manufacturer. The Singaporean Lithium-ion battery company says that its customised durable, high power battery solutions, first deployed in 2012 for specialty vehicles like AGVs, are built for ruggedness to withstand heavy loads and extreme operating conditions. It has also scooped an order for its batteries to be deployed in VDL AGVs for South Korea’s

32 | NOVEMBER/DECEMBER 2024

first fully automated terminal (see VDL company profile).

The company is currently researching a cloud-based technology that can greatly enhance the lifespan and safety of lithium-ion batteries in collaboration with scientists from Nanyang Technological University, Singapore (NTU Singapore). Powered by the Internet of Things (IoT) and Artificial Intelligence (AI), this new solution can help companies and data centres lower the risks associated with lithium-ion batteries, including potential fire hazards.

For the latest news and analysis go to www.portstrategy.com

AGV MARKET AND DESIGN ■ Gaussin: Gaussin announced the launch of the world’s first hydrogen-powered fuel cell AGV for seaports, in 2022. “It will help port operators switch to zero-emission immediately and provide longer operating hours, shorter and less frequent refuelling, as well as quiet and efficient transportation,” underlines a statement by the company. The AGV H2 can

handle a container payload of 65 tonnes, with a maximum speed of 25 km per hour. It is powered by a 2,226kW permanent magnet fuel cell with a 45kW H2 tank capacity, with a 20kg @350bar battery capacity. It can operate with 60kwh autonomy with H2 for 15 hours, with three hours additional autonomy with batteries.

■ Hyundai Rotem: Hyundai Rotem has scooped an order for the production and delivery of electric AGVs at Gwangyang Port in South Korea. Hyundai Rotem will supply a total of 44 port AGVs, as well as control systems and chargers by 2029.

When the project is completed, Gwangyang Port will have a fully automated system for all logistics processes within the pier. The AGV to be supplied by Hyundai Rotem is a large port AGV that is 16m long, 3m wide and 2.3m high, capable of transporting containers weighing up to 65 tonnes. It is powered by electricity and has a fast-charging system, so it can run for about eight hours on a 30-minute charge. The

antenna mounted on the AGV and the sensor embedded on the port floor enable sophisticated driving by identifying the location of the vehicle in real time. It will also be equipped with the latest unmanned technology to prevent collisions by detecting obstacles with LiDAR sensors mounted on the front and back. The company is increasing production efficiency by establishing AGV-only production lines and driving test sites at a factory located in Dangjin-si, Chungcheongnam-do. Based on this, Hyundai Rotem completed the installation of 60 AGVs and related infrastructure supply projects at Pier 7 of Busan New Port.

■ Jungheinrich/Kollmorgen: DB Schenker has started deploying Jungheinrich AGVs with Kollmorgen technology at its terminal in Borås, Sweden – the company’s first to use automated forklifts. “The main challenge on this site is to move a lot of goods in a very short time,” explains Fredrik Ottosson, Terminal & CoDi Manager, DB Schenker Land in Borås. “We also have a target in cluster SE/DK Land to increase automation within our terminals. This is a good step forward in this

direction.” DB Schenker says it chose Jungheinrich AGVs with Kollmorgen technology for their proven track record and tailored solutions. Kollmorgen supplied the system software and vehicle hardware for fleet management, routing, and navigation solutions. The Swedish company, which delivers motors, drives, AGV control solutions and automation platforms, last year launched cloud-based commissioning system Cirrus, which speeds up and streamlines AGV installations.

■ Kivnon: Spanish provider of AGVs Kivnon has struck a partnership with ProLog Automation to accelerate the deployment of such solutions in the German market. This collaboration establishes ProLog Automation as Kivnon’s key

partner for AGV projects and services in Germany. By leveraging Kivnon’s AGV technology and ProLog’s local expertise, the partnership aims to help companies unlock next generation efficiency and competitiveness.

■ Konecranes: Konecranes is now delivering its largestever single order for AGVs to Container Terminal Burchardkai (CTB), supporting the carbon-reduction plans for Hamburger Hafen und Logistik AG. It will introduce 116 Li-Ion AGVs from Konecranes in a transition to a fully electric Automated Horizontal Transport System at CTB. Deliveries will continue through 2025 and take HHLA’s total Konecranes AGV fleet size to more than 200 vehicles. The delivery includes a CE TYPE Approved Interchange and Fence Control safety system connected to CTB’s quay cranes and automated stacking cranes. Ingo Witte, General Manager, HHLA, Container Terminal Burchardkai, points out: “This comprehensive modernisation project is regarded as the largest brownfield

upgrade of an operational plant in the global industry. Once fully implemented, this transformation will enable us to reduce CO2 emissions by up to 12,000 tons annually.” Konecranes used TOC Europe 2024 to launch its Future Fields concept which considers new ways of combining technology including AGVs, to achieve 10,000 moves daily from a single berth. The key features of the horizontal transport area of its idea include managing the vessel and container yard interface with AGVs and deploying a fully electric solution with proven battery technology combined with solar power.

Recent uptake: APM Terminals Maasvlakte II B.V. has struck a deal for 71 lift AGVs from Konecranes as part of a project to double its capacity at the Port of Rotterdam.

■ Siemens: Siemens used LogiMAT 2024 to showcase its Simove platform that is specifically designed for AGVs and automated autonomous mobile robot (AMRs), complete with new features. The platform includes modular software components and libraries for guidance control, navigation, and general automation and uses standardised automation and drive components. Another highlight is the autonomous load-carrier handling technology. The AI-based software

system enables AGVs and AMRs to visually detect, autonomously approach, and automatically pick up load carriers in variable and dynamic environments. Siemens explains that autonomous load-carrier handling solutions can significantly reduce costs, engineering, and time expenditures. Simove is part of Siemens’ Xcelerator portfolio, which includes IoT-enabled hardware and software covering the entire warehouse operation.

■ VDL Automated Vehicles: South Korea’s first fully automated terminal will deploy a fleet of VDL AGVs powered

by Durapower Holdings Pte Ltd’s battery system. Durapower has supplied up to 60 units of their battery system for VDL’s zero emission AGVs, which will transport containers within Busan New Port’s terminal. The Netherlands-headquartered VDL has also recently supplied a mega-order of 80 AGVs to be used for container terminal logistics at PSA Singapore’s Port. VDL says that the AGVs “transport containers 24 hours a day, seven days a week.” VDL is also playing an important role in the PIONEERS Consortium, which addresses the

challenges faced by European ports to reduce their environmental impact while remaining competitive. It is building on the commitment of the Port of Antwerp-Bruges to be climate neutral by scaling up current technology and to demonstrate applicability and feasibility through several demonstrations, acting as a “lighthouse” for EU ports. It will test demonstrations during the project at the ports of Barcelona, Constanta and Venlo. VDL’s role will be in the in the research and development phase by offering advice to terminal operators on operations with electrical heavy duty AGVs.

For the latest news and analysis go to www.portstrategy.com

NOVEMBER/DECEMBER 2024 | 33

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AFRICA MINING LOGISTICS

LAND OF OPPORTUNITY Felicity Landon engages with Capt Pappu Sastry, CEO, ASL, who sees the deployment of logistics know-how in conjunction with growing African mining operations as a land of opportunity “Africa’s landmass is larger than China, India, the The energy transition will not happen in Africa but because continental US and most of Europe combined, meaning that of Africa, according to Capt Pappu Sastry, CEO, Adhira effective shipping and logistics are key to success across the Shipping and Logistics’ (ASL). As a specialist in mining continent,” underlines Sastry. logistics in Africa, ASL is focusing on the ‘critical minerals of the future’ – lithium, copper, bauxite, manganese, cobalt, IPO ON THE AGENDA tin, graphite, titanium and others.

ASL has announced that it will offer an IPO on London’s AIM “Africa is on the brink of an explosion in the mining industry in 2025. The company expects to achieve revenues of US$1 because of commodity demand, especially from China and billion through its core services in mining logistics within a India,” says Sastry. “There is a huge opportunity in mining and ten-year timespan. logistics in Africa in general.”

“As the new mine owners set up shop in Africa, there is an ASL concentrates on junior mines across Africa. Its biggest opportunity to implement better planning, optimise energy project currently is handling bauxite exports mined in Guinea use and resources, and manage equipment and transport – it is also active in Gabon, Liberia, Madagascar, Namibia, capacity more effectively,” says Sastry.

Sierra Leone and South Africa, amongst others.

Click here to read article on There is significant interest from mining groups looking for As the energy transition drives demand for critical minerals, Port Strategy online long-term sustainable projects that also enrich the ASL is securing long-term logistics contracts with global communities in which they operate, he adds. “We are working mining companies, says Sastry. The strategy is to work in with reputable and professional mining and trading partnership with mining companies, developing and companies from North America, Europe, the Middle East, managing their logistics operations – sourcing equipment, Australia, South-East Asia and India. Our stakeholders and trucking and warehousing, and providing port solutions. governments expect these companies to develop logistics for their mines sustainably from the start of the project.”

CHALLENGES GALORE The focus is on employing local labour, ‘uplifting’ the There is a huge range of challenges, not least around access, communities engaged with ASL, providing safety training in safety and security, and there is no one formula or process the use of machinery, equipment and trucks, and the welfare that fits all commodities, let alone countries. For example, of communities near the mines and along the transport routes. lithium is currently shipped in containers – the containers A key component in developing sustainable mining must be sourced, feeder services secured and equipment logistics in Africa, both on land and at sea, is increased set up to load the containers on to the vessel. investment in innovation, machinery, trucking, floating and fixed equipment, and warehousing, says Sastry. “By bringing in new technology and equipment, Africa can improve efficiency and reduce costs in the long run. The opportunity to invest in Africa’s mining sector brings high returns with manageable risk.”

ASL will also replicate this model in other regions – South America being a key target. “This will also drive the changes in logistics needed to become more sustainable,” he concludes.

When it comes to bulk shipments, building a multicommodity jetty is often not cost-effective for a port, so the solution is to build a dedicated jetty for the mining company, perhaps opening it up for use by third parties. Road links between mine and port must be adapted or even built from scratch. Improved warehousing, bagging and distribution centres are required at ports. The construction of a new port in Guinea has involved relocating and compensating village residents.

The company is also approached by government ministries to help support mining companies looking to enter and invest in their countries’ new or expanding mining activities.

“Mining companies consider the costs of mining but often do not think of the logistics,” says Sastry. “Most don’t budget for buying ships or barges or even for mobilising them. Many don’t even realise they have to budget for mobilising cranes, etc.”

ASL – which describes itself as an ‘asset-light shipping company’ – goes to the market and finds the solutions, so that logistics can become opex instead of capex for the mining company, he explains. The company says its strengths are its expertise in Africa and its reach in sourcing assets.

‘‘

The opportunity to invest in Africa’s mining sector brings high returns with manageable risk

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■ Capt Pappu Sastry, CEO, ASL, states there are significant opportunities to work with African mine owners to optimise transport arrangements from point of origin to destination

NOVEMBER/DECEMBER 2024 | 35

GLOBAL GRAIN TRADE

POLITICAL RISK RESURFACES So far, the fallout from the Ukraine crisis has seen only limited impact on grain volumes.

Increasing tension is, however, reanimating concerns about global food security.

Andrew Penfold assesses the situation Long standing observers of the grain trades might be forgiven for thinking that the business is relatively mature.

Sure, the trades have always been influenced by seasonal factors relating to production and stocks, but not since the ‘grain embargo’ placed on the Soviet Union in 1980-81 (following the ill-fated invasion of Afghanistan) have we seen significant upheaval. This has now changed. Once again, the actions of Russia have overturned the stability upon which a large part of the world’s population – especially in the poorer parts – rely on to survive.

Let’s take a look at what has happened since early 2022.

Before then, the trades were characterised by fairly steady increasing world demand for wheat and feedgrains/oilseeds, with the emphasis on wheat focused on the Middle East and African markets, and China driving demand across the board.

The major trend of recent years was the increasing role of both Russia and the Ukraine (and Brazil for oilseeds) in meeting these demand increases. Although port development was required – especially for the introduction of larger vessels out of the Black Sea – there was a balance of supply and demand in the grain port sector. The invasion of Ukraine upended this relative certainty.

KEY GLOBAL DEVELOPMENTS It’s worth summarising the overall development of demand.

Grain trade is of course more than just wheat, with the feed sector dominated by soyabeans and coarse grains. Overall volumes are summarised in Figure 1, which brings together total volumes for the period since 2020/21 (USDA data). The overall profile is fairly constant, with total tonnages increasing from 785m tonnes to an estimated 807m tonnes in 24/25.

There have been some short-term changes, but a steady growth trend is apparent.

A closer examination of the statistics reveals that the major driver of the increase has been wheat trade for human consumption, with volumes increasing from just under 200m tonnes to a peak of 224m tonnes in 2023/24. This represents an increase in market share from 25 to 27 percent. Although a limited downturn is forecast for the current crop year the underlying trend is apparent.

The real sensitivity is in the wheat trades and the direct human effects of trade disruption. Table 1 summarises the development of exports and imports by major country over the period.

Within an overall growth profile – and accounting for typical year-on-year climate-based volatility – it’s clear that the major trend over the period has been the development of Black Sea exports until 2022. The combined shipments of Russia and the Ukraine had become the dominant world suppliers, with the focus of most of this demand being either shorthaul into North Africa and the Middle East or in fragmented demand to smaller markets – usually in Handysize bulkers.

With this supply side analysis, we also see the volatility of Southern Hemisphere suppliers where sharp year-on-year production shifts are well known. Only the North American suppliers – especially the US – have the potential to increase production and shipments to reach levels achieved in the past.

36 | NOVEMBER/DECEMBER 2024

World Grain & Soyabean Trade 20/21-24/25 (m tonnes) 900 800 700 600 500 400 300 200 100 0 2020/21

Wheat

2021/22

Maize

2022/23

Coarse Grains

2023/24

2024/25F

Soyabeans

Figure 1: World grain/soyabean ■ Figure 1: World Turning to imports, the primarytrade trend has been the steady grain/soyabean increase in Chinese demand, although as the economy Aweakens closer examination of the statistics reveals that the majortrade driver of the increase has these volumes are now more uncertain. The real wheat trade for human consumption, with volumes increasing from just under 200m t drivers have been the rapidly increasing populations in the peak of 224m tonnes in 2023/24.

This represents an increase in market share from 25 grain-deficit regions of the Mediterranean (Egypt, Algeria and Morocco) Although and SE Asia.

Here demand is continuing grow, percent. a limited downturn is forecasttofor the current crop year the underlyin and this can only be met by further increases in imports. apparent.

The real sensitivity is in the wheat trades and the direct human eEects of trade disrupt UKRAINE AND THE BLACK SEA the beginning of the Russian Ukraine, in by major country over the perio 1Since summarises the development ofinvasion exports of and imports February 2022, Ukrainian grain exports have been disrupted.

Table 1: Global Wheat Trade Since sought to block shipments Initially, Russian naval vessels 2020/21 from Ukrainian ports. The political price was high, with Russian ‘allies’ in the identified markets facing at least short2020/21 2021/22 2022/23 term disruptions. This resulted in a four-month agreement Exports (million tonnes) between the UN, Turkey and Russia to allow exports via a Russia 39.1 34.0 49.0 ‘safe maritime humanitarian corridor’ – the so-called Black USA 26.6 21.3 20.3 Sea the Ukrainian 35.1 EU Grain Initiative. Some 950 grain 29.7 bulkers left31.9 ports of Chornomorsk, Odesa and Canada 27.7 Yuzhny during 15.0 the period 25.3 –Australia with this accounting for at least 30m tonnes shipped during 33.3 12.7 26.0 the period of the initiative. Around Ukraine 16.965% of the wheat 18.8 exported 17.1 under this arrangement was for9.6 Developing Countries, while 4.7 Argentina 17.7 maize equally to developed and 32.9 Others was exported almost 37.3 41.5 developing countries.

Total 199.6 206.2 217.7 Imports tonnes) On 17 (million July 2023, Russia announced its decision to end the China Sea Grain Initiative.

10.6 9.6 13.3 Black Egypt 12.1 Black Sea 11.3 Following the cessation of the Grain Initiative 11.2 Indonesia vessels have since been using10.0 an alternative 11.3 route, hugging 9.4 EU 5.4 4.6 Romanian 12.2 Ukraine’s southwestern Black Sea coast through Algeria and on to Turkey. Although 7.7 waters this remains a 8.5 relatively safe 8.7 Morocco 5.2 4.7 routing the vulnerability is currently primarily in the load ports 5.8 Philippines which are fixed and easy targets.6.1 The outcome of6.9 this scenario 5.8 Others 142.5 149.3 151.3 remains uncertain, but insurance is up again and there has Total 199.6 206.2 217.7 been a limited spike in grain prices from these sources.

Direct reaction from the Ukraine on Russian export ports Source:radically USDA would worsen the situation and have the potential to see a partial curtailment of Black Sea grain shipments. This would have far-reaching effects and result in the situation first feared when the invasion commenced.

2023/24

2024/25F

55.5 19.6 37.9 25.7 22.5 18.6 7.3 37.0 224.1

48.0 22.5 30.0 26.0 25.0 16.0 15.5 32.8 215.8

13.6 12.3 13.0 12.6 9.5 6.2 6.9 150.0 224.1

12.0 12.0 12.0 11.5 9.0 7.5 7.2 144.6 215.8

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GLOBAL GRAIN TRADE

‘‘

It is clear that the level of risk in the grain trades is much higher than was thought to be the case as recently as two years ago Overall current indicators point towards a successful year for Ukrainian exports, contributing positively to the global supply chain and economic stability in the region. This is probably directly responsible for the recent attacks as Russia seems unable to strike at vessels transporting the grain and is focusing its efforts on the port sector itself.

So, what are the possible outcomes? ● I� f the war is settled – either by a victory or ceasefire – then grain volume will recover sharply as both players seek to lift export earnings despite some uncertainties over production volumes.

Under these conditions, recovery and renewed investment in Ukraine’s grain export terminals will be to the fore. ●O � n the other hand, a continuing attrition will only see further strikes on major grain export terminals provoking a direct response from Ukraine. Under these conditions the Black Sea share of the grain trades will fall sharply – as was feared in 2022.

It’s not possible to place a bet on the likely outcome, but the grain trade has never looked more vulnerable. Production in the US (and other suppliers) could be increased, but the lead times for grain are long and the world stock situation is not favourable

Figure 2: Black step up2:there long investments programmes Figure Black Seadelayed grain situation andinoutlook (USDAto,data)■ Sea grain situation

for example, deepen the River Plate. Other capacity additions

and outlook (USDA

Under these circumstances projecting demand is highly The latest USDA fore must be made to offset the direct risk stemming fromproblematic. data) Ukraine’s unhappy position. (compiled before the increased tension) indicate that until recently Russian moves to rest However, focusing for were such largely developments will (Figure 2). Although production grain shipments fromfinancing the Ukraine ineBectual be problematic until the risk is right in front of us.

It may be declined, actual exports have remained at established levels.

In contrast, Russia has been too late. to increase shipments to some extent.

If history teaches us anything it is that global grain trade is

susceptible shocksthe – geopolitical extreme climate As we move to towards end of theevents, year, continued monitoring of the Ukrainian situation w issues, crop failures etc.developments While such incidences are difficult to that the Ukraine was on a stron essential.

Until recent trend lines suggested plan for, as recent events in the Ukraine have demonstrated, ■ Table 1: Global trajectory, but intensifying war conditions and potential disruptions pose mounting risks. it may be wise to at least to think ahead and devise some

Wheat Trade Since

2020/21 exports, contribut contingency plans.

Overall current indicators point towards a successful year for Ukrainian positively to the global supply chain and economic stability in the region. This is probably 2020/21 2021/22 2023/24 directly responsible for the recent attacks2022/23 as Russia seems unable 2024/25F to strike at vessels transporting the grain and is focusing its eBorts on the port sector itself.

Exports

(million So, what are the possible outcomes? tonnes)

§ If the war is settled – either Russia 39.1 34.0 by a victory 49.0 or ceasefire 55.5 – then grain 48.0 volume will recove

sharply as both players seek to lift export earnings despite some uncertainties ove 26.6 19.6 production volumes. 21.3 Under these20.3 conditions, recovery and 22.5 renewed investment in EU Ukraine’s 29.7 35.1be to the fore.

37.9 30.0 grain export31.9 terminals will § On the other continuing attrition will only strikes on major grain Canada 27.7 hand, a 15.0 25.3 25.7see further 26.0 export terminals provoking a direct response from Ukraine. Under these condition Australia 12.7share of the 26.0 22.5 – as was 25.0 Black Sea grain trades33.3 will fall sharply feared in 2022.

USA

Ukraine

16.9

18.8

17.1

18.6

16.0

Total

199.6

206.2

217.7

224.1

215.8

China

10.6

9.6

13.3

13.6

12.0

Egypt

12.1

11.3

11.2

12.3

12.0

Indonesia

10.0

11.3

9.4

13.0

12.0

EU

5.4

4.6

12.2

12.6

11.5

Algeria

7.7

8.5

8.7

9.5

9.0

Morocco

5.2

4.7

5.8

6.2

7.5

Philippines

6.1

6.9

5.8

6.9

7.2

Others

142.5

149.3

151.3

150.0

144.6

Total

199.6

206.2

217.7

224.1

215.8

It’s not possible place a bet on the likely outcome, but the grain trade has never looked mo Argentina Production 9.6 4.7suppliers) 7.3 15.5 vulnerable. in the17.7 US (and other could be increased, but the lead tim grain are long and is not favourable Others 37.3the world stock 41.5 situation 32.9 37.0 32.8

IMPACT ON PORT INVESTMENTS The world grain trade has become complacent. The immediate impact of the upheavals in the Black Sea were limited and saw an increase in prices which offset some of the downside for the major grain traders. However, it is clear that the level of risk in the trades is much higher than was thought to be the case as recently as two years ago.

It is also clear that there is a requirement to step up not just remedial investments in Ukrainian ports (which, in any case, needed significant improvement) but also in the alternative suppliers. Capacity exists in the US and Canada – although some uprating of under-used export elevators will be required – but other suppliers such as Argentina need to

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Imports (million tonnes)

NOVEMBER/DECEMBER 2024 | 37

Source: USDA

Since early October things have got worse. Obviously reflecting on a general lack of progress in the campaign, in October the Russians launched a ballistic missile attack on the port facilities at Chornomorsk, the third attack on the region within a four-day period. Ukrainian officials also report a Russian missile hit a Palau-flagged vessel in Odesa port, killing one Ukrainian national and injuring five foreign nationals. In addition, a Russian missile damaged a civilian Saint Kitts and Nevis-flagged vessel loaded with corn in the port of Pivdennyi in the same region.

Under these circumstances projecting demand is highly problematic. The latest USDA forecasts (compiled before the increased tension) indicate that until recently Russian moves to restrict grain shipments from the Ukraine were largely ineffectual (Figure 2). Although production has declined, actual exports have remained at established levels. In contrast, Russia has been able to increase shipments to some extent.

As we move towards the end of the year, continued monitoring of the Ukrainian situation will be essential. Until recent developments trend lines suggested that the Ukraine was on a strong trajectory, but intensifying war conditions and potential disruptions pose mounting risks.

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PILOT BOAT: MARKET AND DESIGN INITIATIVES

PUSHING BOUNDARIES Faster, greater stability, more manoeuvrable, cleaner power and supported by IoT and AI, a new generation of advanced pilot boats is launching

■ Brabo Partners is bringing an all-electric pilot boat from Artemis Technologies into its fleet in the Port of Antwerp-Bruges.

The e-foiling based design, whereby the vessel rises up from the water, facilitates reduced drag of up to 70%, in turn significantly reducing the electric power consumption

SECTOR ANALYSIS: DECARBONISATION AND ENERGY EFFICIENCY As global trade expands, there is an increased demand for specialised pilot boats to navigate congested waterways. Additionally, advances in technology, an emphasis on reducing operational costs and the growth of sustainable propulsion are driving market growth, as stakeholders invest in new, modern designs. Growth is forecast at an annual rate of 14% from 2024 to 2031, according to the Pilot Boats Market: Global Market Forecast and Market Trends (2024 - 2031) report. It notes that market trends include the integration of automation in pilot boats to boost navigation efficiency and safety, as well as digitalisation and IoT, to enhance operational tracking and maintenance efficiency. Plus, growing emphasis on sustainability and emissions regulations is fuelling the increase of hybrid and fully electric

pilot boats. One form of electric propulsion gaining momentum is e-foiling. Dr Iain Percy, CEO, Artemis Technologies, says: “We’ve been inundated by inquiries.

Our e-foiling in the pilot boat sector works due to safety, economic and environmental benefits.” He explains that by the vessel taking off out of the water on the foils, drag is reduced by approximately 70%, meaning that less electricity is used. There is also a large safety increase for pilots when they transfer. “It is like having the world’s biggest stabilisers – when pilots transfer to the ladder, the platform is stable,” Dr Percy says. Artemis Technologies’ recent contracts are highlighted below, as are other pilot boat builder profiles, which reveal an emphasis on environmentally friendly and energy efficient features.

DATA ANALYSIS: SUSTAINABILITY, ENERGY EFFICIENCY AND R&D ■ Artemis Technologies: Northern Ireland’s Artemis Technologies has signed a clutch of new contracts for its electric foiling pilot boats. In August this year, pilot services provider Brabo Partners signed a deal with Artemis Technologies, to bring an Artemis EF-12 Pilot boat into its fleet in the Port of Antwerp-Bruges. Scheduled for delivery in late summer 2025, the 100 per cent electric boat produces zero operational emissions whilst slashing operational costs by up to 80 per cent. An advanced active flight control

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system offers precise control, ensuring optimal stability and safety in displacement mode during pilot transfers, even in challenging conditions. The Artemis eFoiler® electric propulsion system also minimises wake, allowing for high-speed transit in areas where such speeds were previously restricted. Artemis Technologies has also secured a contract to supply the Swedish Maritime Administration (SMA) with a fully electric Artemis EF-12 pilot boat. It will be the first 100 per cent electric pilot boat to operate in Nordic waters.

NOVEMBER/DECEMBER 2024 | 39

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PILOT BOAT: MARKET AND DESIGN INITIATIVES ■ Baltic Workboats: Estonia’s Baltic Workboats has signed a contract with Flotte Hamburg for the construction of a new pilot boat. The pilot boat will be based on the Baltic Workboats PILOT 17 WP platform. The contract includes an option for another identical pilot boat. The PILOT 17 WP platform features a wave-piercing hull design which reduces vertical accelerations in heavy seas up to 40% and increases fuel efficiency. The vessel will be equipped with Stage V emission compliant drive system to minimise the environmental impact. The PILOT 17 WP will feature Baltic Workboats’ Integrated Automation, Control and Monitoring

System to allow monitoring and control of the vessel’s main and auxiliary systems from a single touchscreen at the captain’s position and remote monitoring from shore. This is the third hybrid-electric patrol boat under construction in Baltic Workboats shipyard for Flotte Hamburg. In 2023, Baltic Workboats delivered its first ever vessel to Canada. The 17-metre ice-capable pilot boat entered service for Laurentian Pilotage Authority in Montreal and features Baltic Workboats patented wave-piercing hull, an in-house developed remote monitoring and control system and IMO III compliant propulsion solution with Volvo Penta main engines.

■ Gladding-Hearn: US shipyard Gladding-Hearn has built more than 80 pilot boats, operating in the United States and the Caribbean. In December 2023, the Alabama Pilot, Inc. in Mobile, Alabama, took delivery of its second Chesapeake Class high-speed pilot boat from Gladding-Hearn Shipbuilding. The new all-aluminium pilot boat is powered by twin Caterpillar C-18 diesel engines, each delivering 671Bhp at 2100 rpm and a top speed of 27 knots. The engines turn 5-blade NiBrAl propellers via Twin Disc MGX-5136A ‘Quick shift’ gears. A Humphree interceptor, with automatic trim optimisation, is installed at the transom. The launch is equipped with a 9kW Northern Lights EPA Tier 3-compliant genset. Last year the shipyard also delivered a Chesapeake Class pilot boat, certified to Lloyd’s Register class, to the

Bermuda Government, Department of Marine and Port Services. The new all-aluminium launch replaces a 10-knot steel pilot boat built by the shipyard in 1980. Powered by twin Caterpillar C-18 diesel engines, each producing 670 Bhp at 2100 rpm, its top speed is 24 knots. With oversized fendering, thicker hull plating and conservatively rated machinery, the new launch was intentionally overbuilt to be heavier than the typical target displacement to improve seakeeping, longevity and reduce maintenance, explains Peter Duclos, President, Gladding-Hearn Co. The mechanical systems, with keel cooling and dry exhaust for the main engines and generator, copper nickel piping for fire, and HVAC seawater piping, also contribute to the vessel’s longevity and low maintenance, he adds.

■ Glosten: Naval architecture and marine engineering company Glosten is to design low emission boats for San Francisco Bar Pilots that will meet California Air Resources Board (CARB) emission requirements. CARB has established regulations to limit emissions below what is required by EPA for Tier 4 and must be met by any vessel considered a harbour craft by CARB operating in harbour and coastal California waters. San Francisco Bar Pilots is slated to be the

first pilot association in California to acquire vessels that will meet CARB’s Commercial Harbor Craft Regulation. The US-headquartered shipyard support of the new boats includes a propulsion feasibility study, which is currently underway, and a contract design package. The first two station boats are expected to be in service by the end of 2024, with the third in service by the end of 2025.

■ Hart Marine: Hart Marine has completed the ‘Spirit’ pilot boat for Flinders Ports, marking the inauguration of the first vessel in a series of three commissioned builds for the South Australian port. Australia-based Hart Marine has emphasised the importance of sustainability initiatives for itself and Flinders Ports, and to this end Spirit deploys Volvo Penta IPS systems, which enhance fuel efficiency and reduce the environmental footprint. “The twin counter-rotating propellers operate in undisturbed water, optimising thrust parallel to the hull, resulting in enhanced forward propulsion and manoeuvrability,” the port explains. The Volvo Penta Inboard Performance System offers a reduction in fuel

consumption. Its beak bow design facilitates smooth navigation in turbulent waters, significantly reducing vertical acceleration and ensuring stability for pilots.

Elsewhere, Port Phillip Sea Pilots (PPSP) has chosen Hart Marine to construct its new pilot build. PPSP has chosen the same specifications as the Spirit pilot boat.

Equipped with a Marfle fuel monitoring system, the vessel relays real-time engine telemetry and fuel data to the fleet manager. Michael Hanson, Managing Director, PPSP notes: “This new launch marks Port Phillip Sea Pilots’ seventh partnership with Hart Marine and a giant leap forward in meeting our sustainability targets”.

■ Holyhead Marine: Dover Harbour Board’s Diligent pilot boat is now operational. Following three years of work, trials and consultations with partners in the industry, Diligent arrived in July 2024. Developed in collaboration with Holyhead Marine, it is powered by HVO diesel to improve fuel efficiency and reduce emissions. Steven Manser, Harbour Master, Port of Dover, states: “Brand new and with the latest features, she will provide exceptional assistance to our pilots, who do a great job escorting vessels into berth, sometimes during

challenging weather conditions.” Holyhead Marine also built a pilot boat for Belfast Harbour, which was launched in April this year. The vessel replaces PB4, which was the oldest pilot boat in the harbour with 24 years’ service. Elsewhere, Forth Ports, the UK’s third-largest port group, has placed an order with the company for two new pilot boats to join their fleet working on the Rivers Forth and Tay. The new vessels are 16.6 meters long and have an updated hull design and engines offering increased efficiency.

■ Next Generation Shipyards: The Port of Milford Haven has celebrated a milestone with the keel laying ceremony for its new 22-metre pilot transfer vessel, currently being constructed by The Netherlands-based Next Generation Shipyards and designed by Camarc Design. This new vessel is the first step in a long-term, multi-million pound investment programme aimed at enhancing the UK energy port’s pilotage capabilities. Wayne Busby,, Watch Manager,

Port of Milford Haven, points out: “We are faced with some of the most challenging weather conditions in the world and with this substantial investment being made it will allow us to continue providing an excellent service now and long into the future.” Ed Soothill, Technical Director, Camarc Design, adds: “This design from our 22m series has been enhanced with our refined hull, waterjet propulsion and a self-righting capability and is due to join the Port’s fleet in 2025.”

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NOVEMBER/DECEMBER 2024 | 41

KALMAR & KONECRANES: BUSINESS STRATEGY

BACK TO THE FUTURE Big name suppliers to the port industry are adopting business models and working alliances to enhance development of product ranges and service packages. It’s a well-used and successful strategy, as AJ Keyes reveals in conjunction with Kalmar and Konecranes

■ Both Kalmar and Konecranes are continuing on the familiar path of adapting business models and working partnerships to meet strategic aims and objectives - as the old saying goes, “if it ain’t broke, don’t fix it.”

“To improve is to change; to be perfect is to change often,” said Winston Churchill. This is a quote that is certainly applicable to two major port industry suppliers, Kalmar and Konecranes.

These two companies have continued to develop new product ranges and service packages by adopting similar strategies based on: ● Developing and adapting business models – structural company changes to better position themselves for the future. ● Leadership changes – different approaches and focus. ● Working alliances – linking up with other companies in a product development context and/or offering an expanded product range and service package.

Table 1 offers a historical summary of the historic development of these two leading port industry suppliers. A clear approach has been taken by both companies involving long-term and continued geographic expansion and product development, as well as regular merger and acquisition activity.

IF IT AIN’T BROKE….

So, what are these two companies currently doing to support their future aims and objectives? Well, more of the same and as the old saying goes, “if it ain’t broke, don’t fix it.”

The following represents highlights of select new policy initiatives, partnerships and new offerings to the container handling industry from Kalmary:

42 | NOVEMBER/DECEMBER 2024

● In May 2024, Kalmar announced planned changes to its

leadership team, which were further advanced in October 2024. The aim is to deliver faster decision-making, supply chain and process optimisation together with clear end-toend responsibilities to bring efficiencies, reduce complexity and enhance competitiveness as well as quality. This will allow Kalmar to invest in sustainable innovations and make better use of growth opportunities as part of gaining €50 million gross efficiency improvements and reaching a 15% comparable operating profit margin target by 2028. ● There is an ongoing joint-venture collaboration with Nokia supporting new solutions for port and terminal operators to further automate operations and improve productivity.

Previously, Kalmar incorporated Nokia 4G and 5G private wireless and digital platform into straddle carriers, automated stacking carriers and rubber-tyred gantry cranes. ● Earlier in 2024, Kalmar signed a joint development agreement for autonomous terminal tractor solutions with Forterra (formerly RRAI). Kalmar will be responsible for developing the automation-ready terminal tractor (with the Kalmar One fleet management system), with Forterra responsible for the integration of its AutoDrive platform for autonomous operations for the terminal tractor. ● In Q3 2024, a new partnership was confirmed with CES Srl, an Italian manufacturer of super-sized heavy-duty material handling equipment. The deal encompasses the distribution and servicing of CES reachstacker units, which are over 125 tons, on a global basis. Until this new

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KALMAR & KONECRANES: BUSINESS STRATEGY

Kalmar – history dates back to 1940s Finland and Lidhults Mekaniska Verkstad (LMV)

Konecranes – history dates back to 1910 when electrical repair shop, KONE, founded

1974 - LMV acquired by the state-owned company Kalmar Verkstad AB,

1933 – starts to build Electric Overhead Traveling Cranes for pulp & paper cargoes

1976 - first container straddle carrier prototypes introduced

1936 - starts to manufacture Electric Wire Rope Hoists

1980 - introduced first electric forklift

1962 - first crane Preventive Maintenance Contract is signed

1985 - first prototype reachstacker

1973 - begins to expand internationally and makes an acquisition in Norway (Wisbech-Refsum)

2000 - acquired Swedish container spreader manufacturer, Bromma

1983 - established foothold in the U.S. through R&M Materials Handling in Springfield, Ohio

2001 - purchased Dutch ship-to-shore crane and straddle carrier manufacturer Nelcon, plus maintenance company Groot-Hensen

1988 - crane operations are put into the KONE Cranes Division - focus on establishing technical leadership increases

2002 - Finnish lift and escalator company Kone – acquired all shares of Partek.

1994 – Konecranes is formed via the listing of KONE Corporation on the Helsinki Stock Exchange (and on Helsinki Stock Exchange in 1996)

2005 - restructure of material handling businesses into Cargotec Corporation (of Kalmar, Hiab and MacGregor)

2000 - launches a new CXT wire rope hoist for up to 80t lifting capacity range that immediately becomes an industry benchmark worldwide

■ Table 1: Key steps for Kalmar and Konecranes down the years

2005 - first fully automated straddle carrier terminal in Brisbane, 2002 – enters Chinese and Japanese markets Australia, (equipped with the Kalmar Auto-Strad™ system) and established manufacturing plant in Shanghai, China.

2011 - acquired the US-based terminal operating systems provider Navis, which remained part of Kalmar until 2021.

2004 - reachstackers and lift trucks are added to the product range through the acquisition of SMV Lifttrucks AB of Markaryd, Sweden

2021 - Kalmar launched its fully electric portfolio

2006 - MMH Holdings, Inc acquired and expands its product range

2022 - exited heavy cranes business (passed to Rainbow Industries Co. Ltd. (RIC) – shift of focus to current port-folio

2007 - strengthens its position in the machine tool service (MTS) business by acquiring Kongsberg Automation AS in Norway and Reftele Maskinservice AB in Sweden

2023 - introduced the Electric Straddle Carrier Charge Family, which includes battery technologies, charging solutions, and software to support straddle carrier operators in their transition towards decarbonised operations.

2009 - introduces an industry shaping industrial crane, SMARTON®, which can reduce power consumption and energy costs by up to one third

2023 – confirms a new partnership with CES Srl, an Italian manufacturer of super-sized heavy-duty material handling equipment.

2011 - buys WMI Cranes Ltd. (WMI) to strengthen its position in India & first TRUCONNECT® remote services products launched

2024 - signed a joint development agreement for autonomous terminal tractor solutions with Forterra (formerly RRAI).

2013 - launches Agilon, a materials management solution for managing, storing, picking and replenishing components in manufacturing & presents the world’s first hybrid reachstacker for container handling

2024 - Kalmar listed on Nasdaq Helsinki after demerging from Cargotec

2017 - grows significantly by buying Terex’s Material Handling & Port Solutions business 2019 - reinforces its lifting leadership by launching three new products: the S-, M- and C-series 2023 - announces a refreshed purpose, ambition and financial targets 2024 – acquired the business of German crane and service supplier Kocks Kranbau, 2024 - establishing a network of partners to build a full range of port cranes in the US to satisfy domestic manufacturing criteria including “Build America Buy America” (BABA) requirements.

Source: Kalmar / Konecranes

For the latest news and analysis go to www.portstrategy.com

NOVEMBER/DECEMBER 2024 | 43

ADE-WERK GmbH

OIL FREE GREEN PORT

SUSTAINABLE SOLUTION

KALMAR & KONECRANES: BUSINESS STRATEGY

■ Local innovations that evolve into global practices have become commonplace for big name suppliers serving the container port industry......and the strategy looks set to continue....

‘‘

…..we want to ensure that we have the right operating model in place to support our growth ambitions…..

Anders Svensson, President and CEO of Konecranes arrangement, Kalmar’s reachstackers were limited to a 125ton capacity upper limit. As part of the agreement, Kalmar will also provide training and support to its customers on CES products.

KONECRANES INITIATIVES It is a similar story for Konecranes too, with its range of initiatives with recent highlights including: ● As of January 1, 2025, the company is amending its operating model to support “strategy deployment and growth ambitions” to have three Business Areas: Industrial Service, Industrial Equipment and Port Solutions, instead of the current two, Industrial Service and Equipment, and Port Solutions. This change does not impact any financial reporting, as the three Business Areas currently are separate reporting segments because Konecranes combined Industrial Service and Equipment into one Business Area under the same leadership in 2022. Since then, the company’s industrial business model has been simplified and harmonised.

“For over two years, we have successfully managed the Industrial Service and Equipment Business Area as one unified entity. This has allowed us to effectively simplify our Industrial go-to-market model and harmonise our product offering, and we feel that we have largely reached the benefits we were seeking when combining the businesses.

As we expect our business to grow, we want to ensure that we have the right operating model in place to support our growth ambitions especially in Industrial Service,” says Anders Svensson, President and CEO of Konecranes.

For the latest news and analysis go to www.portstrategy.com

● In

mid-October 2024 Konecranes acquired Rotterdambased Peinemann Port Services BV and Peinemann Container Handling BV. Peinemann is a significant port services provider in the Netherlands with a wide customer base, and it has long-term maintenance relationships with several of Konecranes’ key customers. The turnover of the businesses being acquired was over €40 million in 2023, with its 100 employees joining Konecranes once the deal is closed in Q4 2024. Peinemann Container Handling BV has been a Konecranes Lift Trucks distributor in the Netherlands since 2009 and been in the sales, rental and service business of lift trucks in the Rotterdam area since 1954. The value of the acquisition is not being disclosed.

“This agreement gives us the chance to further expand our services and equipment offering in the Netherlands and, with the new sales channels the Peinemann businesses will accelerate our plans to transition to batterypowered electric vehicles in a critical market,” stated Andreas Falk, SVP Lift Trucks, Konecranes.

LOCAL INNOVATIONS INTO GLOBAL PRODUCTS Kalmar was listed on Nasdaq Helsinki on 1 July 2024, following the demerger from Cargotec. The company has a clear mandate combining sustainable material handling around the world, with a strong focus on electrification across its equipment range and increasing lifetime value as well as maximising uptime through a global services network.

As the company itself states, “Kalmar’s story has been built on local innovations that have evolved into global products.”

In its interim report, January-September 2024 Konecranes confirmed that “global container throughput continues on a high level, and long-term prospects related to global container handling remain good overall.” The company is predicting a healthy industry position and using its ongoing strategy, which builds on a continued familiar approach, the future is bright, as long as it continues to evolve and maximise partnership opportunities.

NOVEMBER/DECEMBER 2024 | 45

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As one of the leading manufacturers of quick connector systems,Stäubli covers connection needs for all types of fluids, gases and electrical power.

Tel: +33 4 50 65 61 97 connectors.sales@staubli.com www.staubli.com/en-de/ connectors/

Staubli_Directory Mar 2021.indd 1

ShibataFenderTeam Group SFT is the leading fender manufacturer with +60 years of group experience in the design of safety critical fender system that protect vessels, port infrastructure and people.

We offer the full range of customized fender solutions and maintain production facilities for high-quality rubber products, steel panels and foam fenders.

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Taylor Machine Works designs, engineers, and manufactures more than 100 models of industrial lift equipment with lift capacities from 4,000-lbs. to 125,000-lbs.

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Taylor Machine Works, Inc.

VAHLE is the leading specialist for mobile power and data transmission VAHLE provides the solutions to reduce the carbon footprint while increasing the productivity.

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igus® GmbH igus® GmbH Spicher Str. Spicher Str.1a, 1a 51147 Köln, D-51147 Köln,Germany Germany Tel.+49-2203-9649-0 +49-2203-9649-0 Tel. info@igus.eu info@igus.eu igus.eu/P4.1 igus.eu/P4.1

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SAMSON Materials Handling Ltd specialises SAMSON Materials Handling Ltd in the design and in manufacture mobile specialises the designofand bulk materialsofhandling for manufacture mobileequipment bulk materials surface installation across handling equipment for multiple surface industrial segments.

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DELLNER DAMPERS AB Customised damper and buffer solutions for container spreaders and ship-to-shore, rail mounted gantry and process crane’s.

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E LECTRIFICATION SOLUTIONS

For more than a century, Bedeschi is providing effective and reliable solutions in a wide variety of industries (bulk handling, marine logistics and mining), capitalizing on synergies and cross competences.

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Specialising in capital and maintenance dredging, land reclamation, coast protection, Port Development, Filling of Caissons, Sand and Gravel, Offshore trenching and backfilling Nyhavn 20 Copenhagen K. DK-1051 Denmark +45 33 91 25 07 mail@rohde-nielsen.dk www.rohde-nielsen.dk

LASE offers innovative and productive solutions for ports by combining state-of-the-art laser scanner devices and sophisticated software applications. We are specialised in the fully automated handling of containers, cranes or trucks.

Rudolf-Diesel-Str 111 D-46485 Wesel, Germany Tel: +49 (0) 281 - 9 59 90 - 0 info@lase.de www.lase.de

26/05/2021 12:20

DRY AGRIBULK MATERIALS HANDLING SYSTEMS :

Bedeschi S.p.A

COMPONENTS

B ULK HANDLING

Telestack Directory June 2021.indd 1

D REDGING

ifm electronic gmbh ifm is one of the world’s leading sensor companies in the automation of measurement and control, optimizing technical processes in almost all industries. +49 201 24 22 0 info@ifm.com www.ifm.com

Beumer Directory Jan 2021.indd 1

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Telestack are a leading global manufacturer of equipment for the bulk material handling industry including Ship Loaders/Unloaders, Hopper Feeders, Truck Unloaders, Bulk Reception Feeders, Stockpiling Conveyors, Link Conveyors and Telescopic Stackers.

Rohde Nielsen A/S

LASE Industrielle Lasertechnik GmbH

Fogmaker develops, manufactures, and markets fire suppression systems for engine compartments with high pressure water mist. Fogmaker is a market leader for automated fire suppression systems with 200,000 installations in more than 50 countries since 1995.

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25/02/2021 15:49 Fogmaker Directory.indd 1 01/02/2021 NOVEMBER/DECEMBER 2024 | 47 13:12

PRODUCTS & SERVICES DIRECTORY

Gerbestr. 15, 6971 Hard, Austria T: +43 5574 6883 0 sales@kuenz.com www.kuenz.com

SANY Europe GmbH offers a broad spectrum of high-performance mobile port machines such as Reach Stacker, Empty Container Handler, Heavy Duty Forklift Trucks and Material Handler

Contact Daniel Spicer +44 1329 825335 www.portstrategy.com

Sany SanyAllee Allee11 50181 Bedburg, Germany D-50181 Bedburg Tel: 100 Tel:+49 +49 2272 2272 90531 90531 100 Email: info@sanyeurope.com info@sanyeurope.com Email: www.sanyeurope.com www.sanyeurope.com

TO

For more information visit: seawork.com contact: +44 1329 825335 or email: info@seawork.com

TT Club Directory March 2021.indd 1 48 | NOVEMBER/DECEMBER 2024

25/01/2022 11:42

IDENTEC SOLUTIONS is an industry-leading, trusted partner in managing and monitoring reefer containers and optimizing entire terminal operations through solutions like Reefer Runner and Terminal Tracker.

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Reefer Monitoring Solutions Increase efficiency. Reduce costs.

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The world leading manufacturer of Sideloaders, self-loading semi-trailers for versatile & efficient container handling. www.hammarlift.com info@hammarlift.com

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Taiwan is a major maritime hub on the world’s ocean shipping routes and, because of its strategic location, it has developed into a transshipment hub for East Asian near- and ocean-going ships. In the last few years Asian ports are up against intense rivalry as a result of the economic growth of China and Southeast Asia as well as the expanding trade network in Greater East Asia.

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Conductix-Wampfler The world specialist in Power and Data Transfer Systems, Mobile Electrification, and Crane Electrification Solutions.

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S IDELIFTER/SIDELOADER

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PORT AUTHORITY

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Portchain is the leading provider of berth alignment solutions for container terminals and carriers.

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Künz GmbH Founded in 1932, Künz is now the market leader in intermodal rail-mounted gantry cranes in Europe and North America, offering innovative and efficient solutions for container handling in intermodal operation and automated stacking cranes for port and railyard operations.

Visy systems reduce VISY Oy expenses, optimize safety & security, and VISY takes pride solving via increase throughputincapacity operational problems,Our specialising process automation. singlein gate automation and system access platform gate operating control ports and and OCRsolutions solutionsinmanage all terminals.

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MOORING SYSTEMS

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TO

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GRABS MRS Greifer GmbH Grabs of MRS Greifer are in use all over the world. They are working reliably and extremely solid. All our grabs will be made customized.

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TVH is a global player in the field of spare parts and accessories for heavy forklifts, reach stackers, container handlers, spreaders and terminal tractors.

With over 96,000 references in stock and more than 644,000 known references, TVH offers quality replacement parts for many brands and makes, including the hard-to-find ones.

Tel: +44 2476 585 000 sales.team.uk@tvh.com www.tvh.com

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PRODUCTS & SERVICES DIRECTORY

Prinses Margrietplantsoen 33, 2595AM, The Hague, The Netherlands Tel: +31 (0) 702-051-709 Email: sales@solvosys.com www.sovosys.com

With more than 30 years experience in IT Solutions and Business Operation Consultancy DSP offers a large portfolio of professional services and products to support terminal operations processes and system.

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TO

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MAFI Transport-Systeme GmbH Specialised in the development and production of heavy-duty equipment for transporting containers, semi-trailers, cargo/roll trailers and special container chassis in ports and industry.

Tideworks Technology provides comprehensive terminal operating system solutions for marine and intermodal terminal operations worldwide. Tideworks works at every step of terminal operations to maximize productivity and customer service. info@tideworks.com +1 206 382 4470 www.tideworks.com

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TERMINAL OPERATIONS SYSTEMS

SPREADERS

ELME Spreader AB ELME Spreader, world’s leading independent spreader manufacturer supports companies worldwide with container handling solutions that makes work easier and more profitable. Over 21,000 spreaders have been attached to lift trucks, reach stackers, straddle carriers and cranes.

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TGI Maritime Software is a Terminal Operating System editor and integrator specialized in the support of Small to Medium Terminals. Its expertise is built on 34 years of experience within the maritime sector. TGI provides comprehensive services to its customers all along their projects. OSCAR TOS and CARROL TOS have already been successfully handled by 40 container and RoRo terminals worldwide.

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go to www.portstrategy.com/news For the latest news and analysis go to www.portstrategy.com/news

DECEMBER 2019 | 53

DECEMBER 2019 | 53

POSTSCRIPT STRIKES, DIVERSIONS AND MARKET OUTLOOK

‘‘

It is boom time again in the container shipping business – as evidenced by recent 3rd quarter results – but what is round the corner, more gain or downturn pain?

50 | NOVEMBER/DECEMBER 2024

The container shipping sector has been through a few volatile years. First, Covid-led disruptions resulted in a massive increase in shipping demand as port delays turned over the supply-demand balance. The result – massive windfall earnings for the lines. This, in turn, led to another round of ordering of the largest class of container ships, as the emphasis on ‘market share’ once again came to dominate.

Before equilibrium could return the Houthi menace in the Red Sea provided a further increase in tonne-mileage demand, with this superimposed on some underlying demand growth. Once again, a spike in freight rates was the result.

Now we are looking at the threat of strikes in the Atlantic US and Montreal. Once again, the threat of disruption to supply chains is being manifested in higher freight rates. At the time of going to press, the position was unclear as to the duration of the disruption but it is certainly the case that (some) shipping lines were looking forward to the potential impact that a prolonged upheaval would have on freight rates – and their bottom lines.

None of this really disguises the underlying position.

There are far too many vessels on order, and these are mostly concentrated on the very largest size ranges. In October both CMA CGM and MSC had orderbooks that accounted for around 30-35 per cent of their respective existing fleets. For the fleet as a whole, the figure is currently around 28 per cent. Where will this tonnage be deployed? It is interesting to note that, until recently, both Maersk and Hapag Lloyd – the two members of the new Gemini alliance – have avoided this strategy with a more limited orderbook approach, but in late October this changed with Maersk placing an order in South Korea for six 16,000TEU vessels and similarly in early November Hapag Lloyd placed orders

■ The fortunes of container shipping are riding high but what next? Market prospects are uncertain – more gain or pain again – and what prospects of success for new operational strategies?

in China for 12 17,000TEU and 12 9000TEU newbuildings at an estimated cost of US$3.96 billion.

OUTLOOK PROBLEMATIC Whatever strategy is followed there’s an element of the ‘prisoner’s dilemma’ here. It is certainly the case that over-tonnaging is inevitable and this can only result in a freight rate downturn as new tonnage is delivered. Indeed, any demand dislocation could turn this downturn into a collapse. Major lines are faced with a decision; either increase fleet capacity (and add to the scale of the forthcoming problems) or sit on their hands and see market share erode sharply. A review of liner strategies shows that most lines have opted for the former.

However, no line is insulated from market fundamentals. A shipping downturn will impact both the prudent and the reckless as no line has sufficient capacity to buck underlying trends. The outlook is highly problematic.

What does this mean for ports and terminals?

Recent discussions have once again disinterred – or reanimated – the debate between direct and feeder strategies – see p22. But this is probably beside the point. For container terminals the basic position will be that lines are under pressure and will seek to offload some of this pain onto stevedores. We have seen this before, but their scope for manoeuvre is limited. Lines have invested in terminals, and this may well offer some protection, but it is more likely that as lines haemorrhage cash, they will seek to liquidate some of these investments.

Watch this space, interesting times lie ahead!

For the latest news and analysis go to www.portstrategy.com

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