Port Strategy January/February 2019

JANUARY/FEBRUARY 2019 ❘ VOL. 1019

ISSUE 1

portstrategy.com

INSIGHT FOR PORT EXECUTIVES Terminal ‘packaging’ matters | Writing the hydrogen rulebook | End-of-life crane decisions

THE BIGGER DATA PICTURE 5G scales port connectivity heights

-

!" #

!$

!$

!$

!$

!$

% ! &'( &))

*

+ *

+

,

-")% - + .

-")% - + .

/ . 0

0

!$ -

%

+ ,

1 % 2'( +

3 4 5

6

•

•

•

• ! • "

! "#$%&& ' ( ) * + * # # ,,, ) "# - . )#

The international magazine for senior port & terminal executives EDITORIAL & CONTENT Editorial Director: Mike Mundy mmundy@portstrategy.com Editor: Carly Fields editor@portstrategy.com News Reporter: Rebecca Jeffrey rjeffrey@mercatormedia.com

VIEWPOINT CARLY FIELDS ❘ Editor

Regular Correspondents: Dave MacIntyre; Iain MacIntyre; Felicity Landon; Alex Hughes; Martin Rushmere; Stevie Knight; John Bensalhia; Kate Jones; Ben Hackett; Peter de Langen; Barry Parker; Charles Haine; Andy Barrons Production Ian Swain, David Blake, Gary Betteridge production@mercatormedia.com

Planning for what?

It’s little wonder that so few UK ports have made concrete plans for how to continue profitable operations outside of the EU; what exactly are they supposed to plan for?

Should it come as a surprise to learn that only six or so of 25 of the UK’s minor and major ports have undertaken ‘significant high level and practical planning’ for Brexit? That’s the headline finding of a survey undertaken by global executive search firm Odgers Berndston.

It’s little wonder that so few have made concrete plans; what exactly are they supposed to plan for? Ports have known for nearly two years that the UK is leaving the European Union and from the outside it’s easy to mistake that as ample time to set a plan in motion. But in reality there has been little, if any, clear guidance on what UK ports will face on March 30, the day after the EU ties are officially severed.

In that context, other findings of the Odgers Berndston survey make sense: a further 10 of the group of ports surveyed said they had undertaken ‘some planning but only at high level’. The rest said they are not planning anything until they know what is happening.

I’ve desperately tried to have Brexit blinkers, so sick am I of the political manoeuvring that has come to encapsulate the whole process. I can only imagine how bewildered port executives are managing to put plans in place for every eventuality, and how they are able to secure financing for these Plan B through to Z scenarios.

BEHIND THE SCENES Indeed, circling back to the survey findings, there is an important distinction to make on that leading statement on a perceived lack of preparedness. While the majority of ports surveyed may have said that they have undertaken limited or no planning, that is not to say that they haven’t attended seminars, taken part in Brexit discussions, lobbied Members of Parliament, undertaken preparedness drills and spent many a sleepless night trying to second guess firstly whether the UK will have a divorce deal in place with the EU by March 29 and secondly, if not, what the trading picture will ultimately look like.

Richard Ballantyne, British Ports Association chief executive and a key voice for the UK ports industry, understands their pain. He says that while there might be nothing concrete in place, there are plenty of options being considered.

Other statistics from the survey demonstrate that ports have real concerns and are certainly not burying their heads in the sand. More than half of the respondents said they expect a negative or strongly negative impact from Brexit, and only 25% of those surveyed thought they are currently in a position to handle Brexit well.

Personally, I feel that no-one can fault UK ports for their efforts. They have doggedly, at a port-by-port, group-wide and industry level, made sure that they have had a seat at the relevant table when discussing the trade implications of Brexit. But ultimately they don’t set the agenda and they can’t foresee the outcome. Unfortunately, it seems politicians can’t either – everyone’s in the dark with just weeks to go until the guillotine falls.

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

SALES & MARKETING t +44 1329 825335 f +44 1329 550192 Media Sales Manager: Tim Hills thills@portstrategy.com Media Sales Executive: Sarah Lawes slawes@portstrategy.com Marketing marketing@mercatormedia.com Chief Executive: Andrew Webster awebster@mercatormedia.com PS magazine is published 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

Subscriptions subscriptions@portstrategy.com or subscribe online at www.portstrategy.com Also, sign up to the weekly PS E-Newsletter.

1 year’s magazine subscription £GBP184.50 £GBP184.50

UK & EURO Post area Rest of the World

©Mercator Media Limited 2019. ISSN 1740-2638 Port Strategy is a trade mark of Mercator Media Ltd. All rights reserved. No part of this magazine can be reproduced without the written consent of Mercator Media Ltd. Registered in England Company Number 2427909. Registered office: c/o Shoosmiths, Witan Gate House, 500-600 Witan Gate West, Milton Keynes, MK9 1SH UK. Printed in the UK by Holbrooks Printers Ltd, Portsmouth, PO3 5HX. Distributed by Mail Options Ltd, Unit 41, Waterside Trading Centre, Trumpers Way, London W7 2QD, UK.

JANUARY/FEBRUARY 2019 | 3

.,1*'20 2) 0252&&2 1$7,21$/ 32576 $*(1&<

&21&(66,2 1 2) 7+( 1( : 6+,3<$5' 2) 7+( 3257 2) &$6$%/$1 &$

&$// )25 (;35(66,21 2) ,17(5(67

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± 32/( 675$7(*,( 5(*8/$7,21 /RWLVVHPHQW 0$1'$521$ /RW QÂ&#x192; 6LGL 0DDURXI &DVDEODQFD 0DURF 7HO )D[

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

CONTENTS

JANUARY/FEBRUARY 2019

12 17

11

NEWS

FEATURES

19 Making faster port connections 5G technology is bridging the all-important gap between digitalisation and connectivity

COLUMNS

17 Rumble of discontent at India’s JNPT APM Terminals and DP World have had their knuckles rapped by India’s competition commission over alleged collusion charges

12 Climate timeline reality check

18 Ports need to step up green incentives

The environmental regulatory landscape is changing fast; ports need to run to keep up

A lack of progressiveness from ports on incentivising greener ships is holding back environmental progress

14 2020’s just a year away

10 US ports ready to shine in 2019 A bright outlook for many US hubs demonstrates the realisation of long-term masterplans

11 2019 about ‘more than Brexit’ UK ports plan to forge ahead on a number of fronts this year beyond the implications of Brexit

22

US politicians are already ramping up for next year’s campaign trail, but where will ports fit in?

22 More than a pretty façade Visually-pleasing design of terminal structures is an important step to winning community hearts and minds

25 Writing the hydrogen rulebook Early adopters of hydrogen fuel in ports have a unique opportunity to construct best practices and guidelines for all

29 Final crane curtain call Changing legislation and increasing ship sizes are driving ship-to-shore cranes into obsolescence

32 A feeling of togetherness New Zealand is re-thinking the role and position of its two leading ports

17 Faltering global trade concerns Online portstrategy.com 5 Latest news 5 Comment & analysis 5 Industry database 5 Events

Social Media links LinkedIn PortStrategy portstrategy Google+ YouTube

Weekly E-News Sign up for FREE http://www.portstrategy.com/ aboutus/subscribe/ newsletter-management-page

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

Port planners and strategists should re-consider short term investment plans in light of a precarious global trade situation

is a proud supporter of GreenPort and GreenPort Congress

BALANCING ENVIRONMENTAL CHALLENGES WITH ECONOMIC DEMANDS

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

Sign up at greenport.com

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 Join leading port executives at the Port of Oslo from 16-18 October 2019 www.greenport.com/congress

JANUARY/FEBRUARY 2019 | 5

www.elme.com

LIGHTER

STRONGER

817 INNOVATION Introducing ELME New Generation 817 Spreader â&#x20AC;&#x201C; we call it INNOVATION. Check it out at elme.com/817-innovation

THE STRATEGY

OPERATORS UNDER FIRE AT INDIAN PORT

BRIEFS

Credit: APM Terminals

Newcastle box terminal benefits

The Competition Commission of India (CCI) has ordered Maersk and DP World to withdraw customer advisories which it says could hamper growth at Jawaharlal Nehru Port Trust.

This withdrawal order, which is detailed in a document which Reuters stated it had seen, follows an investigation ordered by CCI last year into suspected antitrust violations by DP World and Maersk at the terminals they operate at the state-owned port.

CCI took action after a complaint filed by Singapore’s PSA International Pte Ltd, which

alleged the rival duo had created barriers to hinder the growth of PSA’s terminal by colluding on certain charges they levy at the port, reported Reuters.

Although the terminal operators handle each other’s containers to help boost the port’s efficiency, PSA had alleged that DP World and Maersk last year issued advisories aimed at discouraging port users from sending PSA’s containers to their terminals.

In an interim order issued by the CCI on 15 January but not made public, Maersk and DP World units

8 Rumbles of discontent at JNPT

were ordered to withdraw those advisories, saying it “smacks of anti-competitive” conduct.

The advisories, if not withdrawn, would cause “irretrievable damage or losses” not only to PSA but also to other terminal operators, and would not augur well for the port’s development, according to the order.

“This is likely to generate unwarranted uncertainty, chaos, discontent and anxiety amongst shipping lines and customers,” the CCI said.

81m teu

GLOBAL PORT DATA STANDARDS MILESTONE

PSA Intl total container handling in 2019

Credit: Port Call Taskforce

Consensus has been reached on critical global data standards for port call data, with a view to allowing machines to better “understand each other” when it comes to shared port call data.

A recent meeting of the International Port Call Optimization Taskforce described this as an “important step forward towards harmonisation of port call data”.

The agreed data definition proposals for recording event data of a port call are largely based on existing International Organization for Standardization standards as well global industry-recognised data exchange protocols such as Electronic Product Code Information Services.

Port call data includes vesselberth compatibility, (safe port) information, information related to availability of berth, fairway, nautical

A container terminal at the Port of Newcastle could provide a A$6bn (US$4.1bn) boost to the New South Wales economy as well as significantly reducing truck trips through Sydney by 2050, according to a new report. The report, Global Gateway for NSW: the economic impact of a container terminal at the Port of Newcastle, found that a terminal at Newcastle would reduce the number of truck trips by up to 750,000 per year. Economic consultancy AlphaBeta estimates the terminal would reduce land transport costs for businesses in northern NSW by A$2.8bn by 2050.

The report compared Newcastle with Port Botany and Port of Brisbane in terms of container transport costs and found that the savings through using Newcastle ranged from A$193 to A$583 per teu.

8 The Taskforce has reached an important consensus on port calls

and vessel services, as well as event data essential for end-to-end supply chain visibility of cargo.

The participants of the taskforce also agreed there is a need to digitise, simplify and optimise the maritime industry through standardised digital data, allowing for real time updates in the port call process.

At the recent meeting,

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

participants also created two clauses for chartering contracts to incentivise the sharing of information on ships’ arrival times and the potential ability for charterers to request – under specific circumstances – that shipowners adjust their speed to suit arrival time. The incentive, which would use a common-use Traffic Management system, would be built around shared benefits for on-time arrival at the port prior to berthing.

Mexico slashes 2019 port budget Mexican ports will receive less state investment in 2019 than was originally forecast.

According to the Secretariat of Communications and Transportation, the coordinating body of ports and merchant marine has been allocated $1.57m in this year’s national budget, compared with $1.7m last year, which is an effective reduction of 7.4%.

There has also been a reduction of 7.1% in finance allocated to the general ports directorate, whose budget has fallen from $3.04m to $2.82m.

JANUARY/FEBRUARY 2019 | 7

THE STRATEGY

BRIEFS

PLEA FOR BETTER GREEN INCENTIVES

$1.47bn for China ports’ development China Merchants Group has issued RMB10bn ($1.47bn) worth of bonds to fund the development of the ports under Liaoning Port Group in China. The bonds have a maturity of five years starting from 18 January, according to Splash. All proceeds from the bonds will aid development of the 2017-founded Liaoning Port Group, an integrated platform for three major ports in Liaoning province – Dalian Port, Yingkou Port and Jinzhou Port. Liaoning Port Group was established in response to the central government’s call to consolidate the port sector, following similar moves by other provinces including Zhejiang and Jiangsu.

In November, China Merchants Group signed a memorandum of agreement with Liaoning government, under which it will acquire a 49.9% equity interest in Liaoning Port Group through a capital replenishment.

8 | JANUARY/FEBRUARY 2019

Incentives from ports need to be better when it comes to environmental improvement, it was argued at a roundtable centred on ports’ role in decarbonising the maritime transport sector at the 2018 United Nations Climate Change Conference (COP24) in Katowice in Poland.

Speaking at the roundtable at the December event, Claes Berglund, public affairs and sustainability director for Sweden's Stena Line, claimed that ports have the potential to incentivise greener ships with fees, but few are very progressive in this field.

8 COP24 found that ports can do more when it comes to protecting the environment

A substantial rebate has to be awarded to shipowners surpassing current environmental legislation, he said, and to further develop this, standards are urgently required so that all ports will have the same criteria.

“I am also waiting for the ports to incentivise on the land side as well – perhaps to give free access to electrical lorries and charge a special fee to those with fossil fuel,” he added.

Lucy Gilliam, aviation and shipping officer at Transport & Environment, said: “We … need to get the incentives right … in order to reduce emissions in port and provide the infrastructure for

onshore power supply and electric bunkering, and think about how we can incentivise these zeroemission vessels that we will need to meet that target in 2050.”

She was referring to the International Maritime Organization’s 2050 objective of reducing the international shipping sector's greenhouse gas emissions by at least 50% below 2008 levels by 2050, with a strong emphasis on a reduction of 100% by this date if it can be shown to be possible.

NSW TO MORE THAN TRIPLE VOLUMES BY 2045

Credit: NSW Government

Valencia has confirmed that incumbent operators are free to participate in the tender for its fourth container terminal with no requirement to increase current capacity levels. However, the tender document also allows incumbents to bid to develop a terminal with a capacity of 50% more than their existing facility and to then abandon their existing facility, benefitting from certain financial concessions.

Speaking exclusively to Port Strategy, a port spokesperson said that if incumbents opted for the latter route it would be possible, through mutual agreement between the operator and the port authority, to recover 80% of any fixed assets that have not been amortised and without the loss of operating guarantees.

Credit: UN

Valencia confirms concession terms

NSW Ports is forecasting an increase in container volumes through its port gateways from 2.4m teu to between 7.5m and 8.4m teu per year by 2045.

It says that 80% of import containers travel no further than 40 kilometres from Port Botany.

This trend will continue over the next 30 years, but greater volumes

8 Port Botany plays a key role in NSW imports

will move west and south west due to population growth.

The majority of regional exports to Port Botany travel by rail, with 86% of full export containers coming from regional New South Wales currently travelling by that mode.

Port Kembla is the next closest port to Sydney (within 90 kilometres), and NSW Ports says it is well connected with Sydney and regional NSW with established road and rail networks. It already services the Sydney market with the import of cars and construction materials.

Due to its proximity to Sydney, and the container destinations moving west and south west, Port Kembla has been identified by the NSW Government as NSW’s next container port, with an approval in place for a 1.2m teu container terminal in the Outer Harbour.

NSW Ports is also investigating options for a larger 3m teu container terminal.

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

Valenciaport

where everything is connected

With its unrivalled strategic location, Valenciaport connects everything in the new digital age. It connects the largest hinterland in the Iberian Peninsula and is connected to over 1,000 ports around the world. It connects the industry's leading operators, the most advanced infrastructure and equipment, innovation, quality, technology, sustainability and, above all, it connects people.

THE STRATEGY

FAVOURABLE OUTLOOK FOR US PORTS Logistics specialist Descartes sees a bright 2019 for most major US ports, although not all will escape the pressures of rising volumes on infrastructure constraints.

Brendan McCahill, senior vice president trade data content at Descartes, predicted a continued uptick in cargo for New York/ New Jersey this year as its investment in raising the Bayonne Bridge pays off.

Philadelphia is said to have “reaped some reward” from building up its refrigerated cargo ability, while nearby Wilmington seems to have noted the development and is exploring its own expansion plans for these specialised cargoes.

Wilmington has employed new marketing staff and is ambitious in its growth plans centred on congestion-free access to the lower Mid Atlantic and northern Southeast market. Georgia and South Carolina’s proposed bi-state facility in Jasper County looks set to continue to grow the influence and size of the Savannah area as a port.

However, the Los Angeles and Long Beach port complex is expected to continue to “feel the pinch of high volume” coupled with an ongoing need to expand infrastructure within their region.

Mr McCahill noted that major US ports will need to continue their focus on their ability to develop land for terminal operations in

BRIEFS China funding puts Mombasa at risk Kenya could lose the Port of Mombasa to the Chinese government if the governmentowned Kenya Railways Corporation (KRC) defaults on a substantial payment owed to Exim Bank of China.

A report from Kenya's Auditor-General warned that the payment agreement allows revenue from Kenya Ports Authority (KPA) to be used to clear the debt.

10 | JANUARY/FEBRUARY 2019

2019, as well as expanding their catchment areas by wedding infrastructure to the port.

Warehouse space will also need to be secured within a 100-mile radius to accommodate distribution, consolidation and deconsolidation.

“A one-year outlook is not how a port operates, but rather with five- and 10-year master plans,” said Mr McCahill.

“These have been in place, capital spent in the few examples noted above, and many US ports continue to search for ways to

8 The Bayonne Bridge heightening project is paying off for New York/New Jersey

expand and enhance facilities in order to have year-on-year growth that complements expanding global trade.”

EASTERN PORT ALLIANCE COMPETITION ROADBLOCK Hong Kong’s Competition Commission opened an investigation into a newly formed ‘Hong Kong Seaport Alliance’ to assess whether it breaks fair competition rules.

Announced on January 9, the alliance between Hongkong International Terminals Limited, Modern Terminals Limited, COSCOHIT Terminals (Hong Kong) Limited, and Asia Container Terminals

‘‘

China as a government has great respect throughout the world.

Unfortunately, the actions of Chinese companies don’t reflect that

Sultan Ahmed bin Sulayem, chairman of DP World, explains why predatory practices and debt traps

by Chinese companies are tarnishing China’s reputation

Limited for the joint operation and management of 23 berths at Kwai Tsing Container Terminals, represents a 95% market share at the Port of Hong Kong.

The Competition Commission stated: “In particular, the Commission is investigating whether the agreement may constitute a contravention of the First Conduct Rule of the Competition Ordinance by

preventing, restricting or distorting competition in Hong Kong. The Commission is carrying out this investigation as a matter of priority.”

Drewry analyst Neil Davidson previously told Port Strategy that Hong Kong has 'long been a prime candidate’ for a terminal alliance and terminal alliances are slowly being pursued by operators in ports where terminal capacity is fragmented.

Unions intervene in Buenos Aires dispute

IAPH seeks Secretary General

Union leader Hugo Moyano is attempting to scuttle a government plan to create a single container terminal concession at the Port of Buenos Aires as of 2020, replacing five existing concessions. Mr Moyano has become involved in a dispute between Terminales Río de la Plata (TRP), which operates terminals 1-3, and one of its suppliers, Terminal 7.

The former has ceased working with the latter, leaving bad debts and redundancy liabilities.

The International Association of Ports and Harbors (IAPH) is seeking a secretary general to take responsibility for the internal management of the organisation, including the administration of the secretarial and financial affairs. Candidates must be full-time residents of Japan, in which the head office is located, and administer the secretariat staff.

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

THE STRATEGY

BRIEFS

Credit: Ronnie Macdonald, Flickr CC BY 2.0

Opposition to EU Access Point

2019 ABOUT ‘MORE THAN BREXIT’ FOR UK PORTS This year will see British ports focus on issues including port sector promotion, increased public transport investment, planning/ consenting improvements and issues around people and safety, in addition to Brexit.

The British Ports Association will be promoting the case for increased road and rail infrastructure investment to better connect UK ports and encourage the development of a new national freight strategy to better facilitate trade and cargo transportation and keep the sector competitive, reducing costs for the freight and logistics industry. The BPA has also been promoting a ‘Port Zoning’ policy, which it will be

looking to assess and conduct further analysis.

This year, the BPA said it will also be pressing the Government to prioritise transport spending on issues identified in the UK Department for Transport’s Port Connectivity Study, which assessed the transport needs of English ports, and encouraging the devolved administrations around the UK to consider similar initiatives.

The Association said it had called for a new UK freight strategy and was encouraging Government to put in place a coastal shipping policy.

Other initiatives will include examining safety and skills at ports, supporting the work of the industry

8 UK ports such as Felixstowe (pictured) are gearing up for a year of change

body Port Skills and Safety; launching a new ‘People in Ports’ initiative to explore the different roles that ports provide; and working with government regulators on environmental challenges some ports face with regard to obtaining planning consent in designated areas and new air quality reporting requirements for ports.

The UK ports industry will also have to prepare for the introduction of the European Port Services Regulation, despite the UK’s imminent departure from the EU, added the BPA.

OPERATOR BOOSTS LATIN AMERICA PORTFOLIO DP World is set to expand into Chile after signing an agreement to acquire a 71.3% stake in Puertos y Logistica S.A. (Pulogsa) from Minera Valparaiso and other shareholders associated with the Matte Group.

Pulogsa operates a long-term concession for Puerto Central (PCE) in San Antonio, in Chile’s Central Region V as well as owning and operating Puerto Lirquen (PLQ) in Chile’s Southern Region VIII. Under the tender process DP World will offer $502m in consideration for 100% equity ownership.

The transaction is expected to be finalised in the first half of 2019.

San Antonio-located multipurpose terminal PCE is one of the country’s largest container ports (over 1m teu capacity), with recent infrastructure investments making it the most modern

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

8 DP World has invested in Chilean ports, including Lirquen (pictured)

terminal in Chile. PCE has the potential for further capacity expansion for both container and non-container operations.

Maritime organisations have urged the European Parliament’s Committee on Transport and Tourism not to create an EU Level Access Point Interface following its adoption of the Clune Report on the draft Regulation for a European Maritime Single Window Environment.

A vote on January 10 approved the introduction of an EU-level access point interface, in addition to a new harmonised interface that will be developed at European level for the national single windows, but in a joint statement a group of ports, logistics, Customs, forwarding, pilots and port community systems associations said they “oppose the creation of an EU Common Access Point Interface”.

They “believe that such a system would be against the [European] Commission approach of creating an interoperable environment or ‘systems of systems’ and would require significant investments from Member States and the private sector with limited, if any, added value for the entire logistics chain”.

S. America’s first CO2-neutral port Contecon Guayaquil SA (CGSA) has become the first port in South America to obtain carbon-neutral certification following its efforts to implement sustainability initiatives and incorporate technologies that reduce its operational impact. The Ecuador Ministry of Environment and environmental ratings agency, Sambito SA issued the certification marking CGSA’s compliance with ISO 14064-1 standards.

JANUARY/FEBRUARY 2019 | 11

THEENVIRONMENTALIST COLUMNIST CHARLES HAINE

Last year, we saw so many stories about the lost opportunities for real leadership in politics, energy and climate change, that many will have missed the flurry of activity in extra time.

Around the time Santa’s elves were buffing their snow boots, the UK released its draft Environment Bill. This Brexit playbook included plans for a Defra-funded environmental watchdog (the Office for Environmental Protection) and stated that environmental law will cover “marine, coastal or nature conservation” – a slightly strange combination of words – but not flooding and town and country planning. Surely changes are afoot at the UK’s Marine Management Organisation.

Last year saw the launch of the flagship 25-Year Environment Plan (lots of generic commitments to improve the marine environment, especially litter and plastics), a Clean Air Strategy with implications for ports (read, start measuring it!), ‘consultation’ on mandatory net gain in the planning system, and a new waste and resources strategy. This year will be more challenging than usual for UK ports and terminals wanting to build and physically expand.

Meanwhile a Defra initiative to investigate plastic straws and stirrers pales into insignificance alongside the October release of the most important document in recent history.

The Intergovernmental Panel on Climate Change Special Report on 1.5⁰C, which I call the final ‘warming warning’, stated that humanity has until 2030 to keep GHG emissions below dangerous levels. That’s only 132 paychecks from now to implement transformation in the world trade system to be able to cope with the unprecedented accelerated physical damage from extreme events we are already witnessing.

World greenhouse gas emissions need to peak by 2020.

Decision-makers therefore probably have one round of capital expenditure to invest in

Credit: 123rf

REALITY CHECK ON CLIMATE TIMELINE

low (embodied) carbon, resilient and future-ready ports and coastal transport infrastructure. In this age of disagreement, can ports, cities, councils, ministries and companies collaborate to create these networks – in a decade? There will be success stories but the answer is clearly: of course not. Adaptation planning is about to become de rigueur in all our fields of work.

CRUSADE TO DECARBONISE December’s 24th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP-24) in Katowice, Poland, received a reasonable amount of media coverage. Despite aviation and maritime negotiations falling under separate UN regimes through the International Civil Aviation Organisation (ICAO) and the IMO, respectively, what is key is that the ‘transport community’ is now ensconced in these annual discussions.

Staying within our lifetime, it’s estimated that total global transport emissions need to be reduced to 2-3 gigatonnes (Gt) of CO2 per annum, by 2050, to

There is certainly a gap in that market for a sustainability and/or climate ‘leader’ 12 | JANUARY/FEBRUARY 2019

honour the mitigation measures legally adopted in the Paris Agreement. Currently, international shipping alone emits 1 Gt a year and despairingly, a 23% rise is predicted by 2035 (compared to 2015). There can be no let-up in the crusade to decarbonise. Banks and institutional lenders are way out in front in recognising that.

I hope 2019 will see a few companies in the maritime realm embrace the gear change required in our sector. We've seen very welcome advocacy among the port authorities – including those in the new World Ports Sustainability Programme – but now it’s time for the private container operators and cargo handlers to join in by making harder-hitting advances. There is certainly a gap in that market for a sustainability and/or climate ‘leader’. Perhaps such leadership will spring up from the likes of an Argentina, where a carbon tax has already been adopted on all fossil fuels sold, or Portugal, where the nation has announced carbon neutrality by 2050 and has 25 specific objectives for transport.

You’re not going to get one of those new year top ten lists from me here, but there are several key initiatives that ports and maritime

8 Portugal has announced carbon neutrality by 2050 and has 25 specific objectives for transport

organisations will encounter in 2019. All GHG emissions reduction strategies will need to embrace the Science-based Target (SBT) approach. Momentum will be gained on disclosing climate actions and information inherently linked to their business performance in line with the TCFD (Task Force for Climate-related Financial Disclosure, which stemmed from a Bloomberg report). Credible actions on sustainability and CSR will need to be properly prioritised and aligned with the relevant UN Sustainable Development Goal (of which there are 17). Even while the MMO gears up for the lower global sulphur limit in marine fuel for 2020, there will be no let-up on air pollution – especially in respect of coastal shipping routes, vessels idling in port and heavy machinery in terminals – and the appalling effects on human health.

Remember, outdoor air pollution kills 4.1m people worldwide every year. You'll be hard pushed to hear a more devastating statistic this year.

8 Charles Haine is technical director, maritime, at WSP.

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

THENEWYORKER

COLUMNIST

BARRY PARKER

ON THE 2020 CAMPAIGN TRAIL

Credit: Diana Robinson, CC BY 2.0

The political climate has been more divisive than ever lately, or at least it seems that way. The good news through all the political manoeuvring, skirmishing and, some days, outright war between the political parties is that infrastructure is a topic which has the potential for agreement among all parties.

Though the spectre of a ‘trade war’ (however it is defined) looms in the background, throughputs have been good throughout 2018.

But the new year has brought more uncertainties; financial markets are hinting that, perhaps, growth could slow. Some observers are suggesting that last year’s robust cargo flows were ‘anticipatory’, that is to say they were to bring in cargo before tariffs hit.

As I've noted before, my crystal ball was shattered many years ago, so I will keep the forecasting in someone else’s wheelhouse. With the start of 2019, the grist for a different type of forecaster – those who handicap political races – has now begun in earnest.

Here in the US, suddenly the next national election in 2020 is ‘only a year away’. My track record

of predicting political outcomes is no better than my successes (or not) with cargo moves, vessel hires and freight rates, but recent events in New York City got me thinking about a win-win 2020 scenario. The Governor in New York, Andrew

THEANALYST

8 Will Andrew Cuomo run against President Donald Trump?

Cuomo (a consummate Democrat politician and a Clinton-era Cabinet member) has tried hard to build his infrastructure credentials. His centrepiece has been the relatively

on-time and near-budget reconstruction of a major bridge, named after his father, Mario Cuomo, who was the Governor in the 1980s.

Most recently, he dived headfirst into the political muck and overruled a regional transit authority that was poised to shut down one of the city’s major underground lines for two years, applying fixes after its muddying up from the flooding due to Hurricane Sandy a few years back.

The Democratic political field is jammed and snarled with possible contenders who will run against President Donald Trump – himself a lifelong New Yorker until he moved to Washington, D.C. – in 2020, but my money is on Cuomo.

The Presidential campaign will be contentious, no doubt, but I look forward to a race where both candidates try to outdo each other in their promises to fix the crumbling surface modes and to improve flows of vehicles. Yes, that’s what I’d like to see: two New Yorkers, both from the Borough of Queens, shouting loudly about how important it is to improve transport infrastructure.

COLUMNIST

PETER DE LANGEN

A RETHINK ON CONTAINER STORAGE The recent announcement of a new container storage system, which according to the developers can triple terminal capacity, is interesting news.

Container storage methods have changed little, if at all, over the last decades. But now a German industrial engineering group – an ‘outsider’ with no prior expertise in container storage systems – and DP World have jointly developed a system, similar to those in automated warehouses, to store and retrieve containers up to 11 stacks high.

The value of such a system is partly in the increase in operational efficiency as there are no unproductive moves. However, the core effect is much higher

14 | JANUARY/FEBRUARY 2019

land productivity. This is relevant, as land in ports is increasingly scarce and has various alternative uses.

In many ports, terminal operators are not paying the ‘true costs’ of land, as public infrastructure investments are not fully passed on to the terminals.

The gradual shift towards business case driven port development leads to higher land/concession fees for terminals and thus helps tip the balance in favour of expensive high productive systems against cheaper low productive systems.

The announcement of the first application at Jebel Ali’s Terminal 4 is in my view surprising. Jebel Ali's volumes are still below 2015

levels, and there is around 3m teu of unused capacity. In addition, the growth prospects for the region are lower than in other regions.

Furthermore, this storage system would seem to be more attractive for gateway ports with complex, fragmented landside operations than for a transhipment port like Jebel Ali, where the issue of unproductive moves should be smaller.

Finally, one would expect the land value in Jebel Ali to be lower than metropolitan ports such as Hong Kong, Antwerp, Vancouver and Valparaiso. In Valparaiso for

instance, such a system may be an alternative to an expensive and strongly contested new terminal development that would deeply and negatively impact Valparaiso’s potential to develop its waterfront, arguably its most important urban development challenge.

In short, even though it remains to be seen if this particular system will win-out, or if the Jebel Ali project will be successful, there is little doubt current storage practices need to be disrupted by radically more productive alternatives, with benefits for ports and their cities.

There is little doubt current storage practices need to be disrupted by radically more productive alternatives

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

19 NOV Hamburg 21 201ȟ Germany TO

BOOK NOW AND SAVE 20% *use code ‘early’ Chaired by: Lars Robert Pedersen, Deputy Secretary General - BIMCO Martin Kroeger, Managing Director, German Ship Owners Association - VDR

SAVE €399.00

*Full price €1995.00

Delegate place includes: • Conference attendance on both days - choice of propulsion or fuels stream • Full documentation in print and electronic format • Lunch and refreshments on both days • Place at the conference dinner • Place on the technical visit Meet and network with over 200 CEOs and technical directors from ship owning, operating and management companies, and senior åƻåÏƚƋĜƴåŸ üųŅĵ ÏĬ±ŸŸĜĀϱƋĜŅĹ ŸŅÏĜåƋĜåŸØ ŞŅĬĜÏƼ makers, shipbuilding, fuel, equipment and technology suppliers

Propulsion stream | Alternative fuels stream | Technical visit For more information on attending, sponsoring or speaking contact the events team: visit: propulsionconference.com contact: +44 1329 825335 or email: conference@propulsionconference.com

Supported by:

Sponsored by: SILVER SPONSOR

MOTORSHIP

THE

#MotorshipPFF

Organised by:

INSIGHT FOR MARINE TECHNOLOGY PROFESSIONALS

THEECONOMIST COLUMNIST BEN HACKETT

As the stock market continues on its rollercoaster ride, the global trade situation is looking increasingly precarious.

Trade wars, rising trade barriers and inward-looking policies responding to populist tendencies around the world all point towards rising challenges for the shipping industry in general and for the port industry in particular.

Liquid and dry bulk shipping is weak as it enters 2019 and the container sector is faring little better; optimism has evaporated in the face of faltering demand. In Asia, export growth is declining and forward-looking indicators such as the Purchasing Managers’ Index are down to levels that suggest further export growth will not be forthcoming.

Fleet growth remains a problem for both dry bulk and container shipping. New capacity continues to outpace demand which will hit financial returns hard in 2019. What is interesting, however, is that a number of major banks involved in ship financing have a rosy outlook for the year – maybe they are taking a long-term view.

Credit: 123rf

SOURING PROSPECTS DENT OPTIMISM

At the port level there is excess capacity in Asia and Europe. As China’s imports and exports weaken, this will further impact on ports and terminals. We can expect greater efforts to maintain, and also to gain, market shares which will benefit shipping lines as they are tempted with discounts on port fees and handling charges.

Perhaps Brexit – the UK’s exit from the European Union – might provide some relief to ports and

THESTRATEGIST

the ro-ro shipping sectors as the panic, real or imagined, of shortages is creating new port-toport services and potentially bringing new players into the fray.

Back on a global scale, there is a silver lining as much of the potential trade downturn may be restricted to lower levels of growth rather than absolute declines in volumes. But no doubt many port planners and strategists are looking at their investment plans

8 Even Singapore is said to be having doubts about the scale of its Tuas expansion

for the coming two years and thinking about delaying expansion plans and new projects. Even Singapore is beginning to have some doubt about the potential to fully expand its Tuas port to the maximum 60m teu as regional competition heats up, particularly in Indonesia. Definitely, things could be better.

COLUMNIST

MIKE MUNDY

ERITREA MUST LOOK AT ITS OPTIONS With relations between Eritrea and Ethiopia now back in positive mode – after a 20-year dispute – the Eritrean ports of Assab, in the south of the country, and Massawa in the north are the focus of strong interest from international port operators.

The name that is mentioned most frequently is that of Dubai-based port operator DP World. The UAE already has a military base in the port of Assab, extensively used in conjunction with its military activities in the Yemen as part of the Saudi-led coalition which aims to restore President Abd Rabbuh Mansour Hadi to power and crush the Houthi uprising.

Further, there are strong indications that the UAE together

with Saudi Arabia will back the Ethiopia-Eritrea rapprochement with substantial funding, including for infrastructure development. It is hardly surprising then that many parties make the assumption that DP World will soon secure for itself a commercial port operator role in Eritrea.

Similarly, Moscow is known to be interested in setting up a ‘logistics centre’ in Eritrea – and as part of this undertake port investments. Russia’s Foreign Minister Sergei Lavrov and his Eritrean counterpart Osman Saleh

among others have recently discussed this project.

At a more local level it is also understood that Ethiopia has indicated its willingness to make strategic investments in the Eritrean port system as part of a broad-based initiative to secure more port gateways and build competition with Djibouti, the current main gateway for Ethiopian maritime cargo. Such investments could include taking a stake in a new concession of a similar type to the one implemented by Ethiopia in DP

Best fit partners in the port business are about more than the parties that make the first approach

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

World’s Berbera, Somaliland, project where it has taken a 19% equity stake.

In the final analysis, however, best fit partners in the port business are about more than the parties that make the first approach. It is to be hoped that Eritrea if it goes down the road of offering commercial port concessions does so by inviting all qualified parties to bid for the opportunities on offer and fully examining all the partner options open to it. There is no substitute for a proper concession bid process, with assistance from experienced advisors and run on a fully transparent basis, as a path to securing the best business partner and operating arrangements overall.

JANUARY/FEBRUARY 2019 | 17

World-class terminal operations made simple...

...worldwide.

Itâ&#x20AC;&#x2122;s the worldwide that makes the difference.

Understanding the nuances and challenges associated with bulk terminal activities in difficult environments across the globe is what sets Nectar apart.

We have operations in 156 locations across the world and by combining our technical and operational expertise with local knowledge in a port or a region we can guarantee a world class result whether itâ&#x20AC;&#x2122;s a multifaceted high volume terminal or a single specialised berth.

With over 4 decades of experience we advise on disciplines from initial design and consultancy to full management where we are responsible for all activities from the unloading of vessels to storage of cargo and maintenance of equipment.

At Nectar we make complicated bulk terminal solutions simpleâ&#x20AC;Ś worldwide.

T: +44 1708 386 555

W: www.nectargroup.co.uk

E: CommercialTeam@nectar.co.uk

TECHNOLOGY: 5G

A SIMPLE WORD IS MAKING CONNECTED PORTS A REALITY Felicity Landon considers the progress and promise of 5G technology for ports as trials get underway to prove its value

Credit: Hamburg Port Authority

8 Hamburg is a key testing ground for 5G

Broader, faster, better – last year, Björn Pistol, head of port strategy at Hamburg Port Authority, discussed Hamburg’s role as a pilot for the European Commission’s 5G communications programme and said: “The establishment of 5G will be a fantastic help for our Smartport project.”

As the port has said: “The beautiful new world of digitisation collapses when data cannot be transmitted.” 5G, with transmission rates of 1.25 GB per second, clearly eclipses solutions based on fixed cabling or traditional mobile networks.

So where have we got with 5G, where are we going, and when will we get there?

“5G is being perceived as the communication benchmark of the future and as a completely novel network concept that is the combination of terrestrial and mobile networks,” says electronics and communications engineer Vineet Malhotra, director of Mumbai-based Kale Logistics Solutions. “In addition to increasing broadband width and speed, 5G is expected to support an extensive array of use cases that all have diverse speed, latency, security and capacity requirements.”

The port industry and the logistics sector will likely benefit immensely from 5G, says Mr Malhotra – it has the capability of offering a higher level of security, reliability and speed beyond those of the current networks and can provide a port with an entirely new set of application options. “5G is an ideal platform for standardised and seamless communications. A connected port is becoming a reality with 5G, as it brings in more vessels, more trade and an increase in sustainable development.”

Augmented and virtual reality (AR/VR) applications for the port's engineering team would be connected via 5G mobile broadband, for example. “The engineers would be supported

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

in their day-to-day work with an easy mobile access to construction plans and other technical installations within the port area. This AR/VR equipment would be connected to a central application server through the 5G mobile network, using a dedicated network slice. The 5G slice for the AR/VR device would provide a high data throughput to enable fast delivery of documentation and pictures or video material.”

GERMAN PIONEER Among those already ‘on board’, he highlights Hamburg as a key testing ground. Hamburg Port Authority, as lead partner, is working with Deutsche Telekom and Nokia on a testbed that covers 8,000 hectares of port area. The trial programme is part of the two-year 5G MoNArch (Mobile Network Architecture) research project. Horizon 2020, the European Union’s Framework Programme for Research and Innovation, funds the project.

Nokia has also been involved in industrial trials of 5G in partnership with ABB and Kalmar; carried out as part of the Wireless for Verticals (WIVE) research project, the trials were said to be one of the first real-world applications of time-critical 5G applications in electricity grid and harbour automation.

Nokia and ABB demonstrated how ultrareliable low latency communications (URLLC) technology can be applied to protection applications in mediumvoltage distribution networks, and then showed the ability of URLLC technology to advance container yard automation.

The 5G URLLC technology provides an

8 Kale Logistics Solutions’ Vineet Malhotra sees the connected port becoming a reality with 5G

JANUARY/FEBRUARY 2019 | 19

TECHNOLOGY: 5G

GLOBAL TESTBEDS Ports around the world are implementing trial 5G networks to enable fast and high bandwidth communication – including the Port of Livorno in Italy and some ports in China, says Mr Malhotra.

“The key objective for them is automating commonplace port activities completely.”

Meanwhile, he says, Ericsson has launched a host of research projects in Tuscany to test new technologies in cloud technology, robotics and big data, all supported by 5G connectivity.

Mr Malhotra, who worked in leading positions in Siemens, Premier Evolvics and Amara Raja Batteries before joining Kale Logistics, says the reliability and security afforded by 5G make it an essential constituent of automation of port activities – and he can foresee the time when it will be taken for granted.

“Today, 5G applications are restricted to using virtual reality and live video feeds in operations management. Nevertheless, once these technologies have been developed to an acceptable standard, they will likely lead the way for greater autonomy in port operations.

“It is simply a matter of years until 5G sensors will be so affordable, durable and available that everything will likely be connected. Thus, shipping companies and other logistics providers will reap the benefits of the 5G technology shortly.

Ports need to join the 5G bandwagon early enough to evade the risk of losing business.”

DEFINING TECHNOLOGY Anna Navarro, IT project manager at Tarragona Port Authority, recently completed a master’s thesis which looked to identify which technologies would define the Port 4.0.

For this, she carried out a survey in which participants were asked to choose between 12 emerging technologies – drones, hyperloop, 5G, VR, AR, machine learning, IoT, Big Data, autonomous vehicles, 3D printing, block chain and robots.

Three-quarters of the respondents said that 5G would be the future in ports, and an even higher number said it would have one of the biggest impacts, she says.

“I think that 5G will have an important role to play in ports for two main reasons,” says Ms Navarro. “First, the Internet of Things in ports – everything will be connected and exchanging high volumes of time-sensitive data in the automation of operations.

For IoT to be fully operational and deployed in ports, we need 5G as the technology capable of offering the bandwidth needed. Second, full internet access in the port area – ports are big extensions of land and maritime infrastructure, which makes it difficult to have quality internet access in the whole port area. With 5G, we will have it.”

According to the Gartner hype cycle for emerging technologies 2018, 5G is expected to reach the ‘plateau of productivity’ in two to five years, says Ms Navarro: “So, this could also apply to ports.”

Think Light is a consultancy based in Portugal specialising in master planning, technologies and design and ‘forecasting the year 2068’. Its master plan approach to critical infrastructure, called ‘The Meeting – Charge Connect Move’, takes a long-term perspective with a minimum 50-year time frame, says Think Light founder José Nuno Sampaio.

“With the arrival of 5G, long-term visions will become more necessary than ever, as the speed of transformation will multiply with the advent of AR/VR,” he says. “The necessary

20 | JANUARY/FEBRUARY 2019

Credit: Port of Rotterdam

affordable communication platform for deployment of advanced technology for protection, control and monitoring, according to ABB program manager Petri Hovila. “The results of the WIVE project are encouraging for future utility-scale implementation of 5G.”

speed and safety for developments on UMS (Universal Media Server) are only possible with serious investments in testbeds and pilots, intercontinental cooperation platforms and ultrareliable and low-latency communications.”

Hamburg Port Authority says 5G provides security, reliability and speed that did not exist in mobile networks. Its two-year pilot project, which kicked off at the German port in June 2017, has included integrating traffic lights and signal controls in order to optimise traffic flows automatically and avoid traffic congestion, and fitting port ferries with sensors to ‘see’ real time what is happening across the port.

In addition, HPA has been using AR in the planning of construction projects. Real pictures can be overlaid with digital data and key information, enabling technicians to be guided through technical operations and maintenance work, port authority CEO Jens Meier said in a recent update. “So it is not just a lot of theory – we have been able to demonstrate real use cases,” he said. “We can envisage real use cases going forward.”

8 Rotterdam is testing the industrial application of 5G

MULTI-PRONGED BENEFITS OF 5G KPN, Shell, Huawei, Ex-Robotics, Accenture and ABB have worked with the Port of Rotterdam Authority to test the industrial application of 5G. Thanks to 5G applications, production processes can be optimised, industrial maintenance can be better predicted, and safety can be improved, says the port. “The large-scale deployment of wireless sensors is also possible and the process industry is given direct access to relevant digital information from the production environment,” adds the port.

Tests have included preventive maintenance of 160,000 kilometres of pipelines at Shell Pernis through 5G connected ultra-high definition (UHD) cameras and the application of machine learning which meant that future maintenance requirements could be more accurately predicted.

KPN has installed an experimental 5G network in the port; this, says the port authority, makes Rotterdam the first area in the Netherlands that is equipped according to 5G standards and suitable for the latest video and AR applications from industry partners.

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

ŏŏ JUNE Southampton ŏƑƗljŏŀ United Kingdom TO

Seawork is open for business Reserve your place today and make the most of free marketing support from Seawork and Maritime Journal in print, online, eNews and social media.

Europe’s largest and only on-water commercial marine and workboat exhibition.

4ZIV ZIWWIPW ERH Ǽ SEXMRK TPERX. European Commercial Marine Awards (ECMAs) and Innovations Showcase.

Show your latest innovations in vessels, equipment and services to over 7,700 maritime professionals.

Also returning in 2019

Speed@Seawork Sea Trials & Conference 10JUNE 11 2019 TO

For more information visit: seawork.com contact: +44 1329 825335 or email: info@seawork.com #Seawork2019

Southampton UK

Organised by: Media partners: BOATINGBUSINESS BOATING BUSINESS & MARINE TRADE NEWS

PLANNING: TERMINAL DESIGN

PORTS CAN BE BEAUTIFUL INSIDE AND OUT

Credit: Moederscheim Moonen

Ports that choose to optimise the design of their buildings can win both public and private supporters, finds Stevie Knight

It’s a truism, however unfair, that urban communities often shut out the ‘ugly’ port that supplies them, turning their backs on it both figuratively and literally. This is eroding some of the interest and pride that should rightly bind the two together.

While a new coat of paint probably won’t make enough of a difference, there are some design facets that are worth considering. Reminding people what the port represents isn’t a new idea. Olivier Lemaire of the worldwide network of port cities AIVP points out that port buildings in the 19th century especially “used ostentatious architecture to testify the power of the maritime economy”. It was, he says, “emblematic of an economic prosperity based on global trade”.

Some ports do recognise the need to reclaim their place in the public consciousness. Famed architect Zaha Hadid’s imposing Antwerp Port House, which balances a large ship-like structure on top of the old, rather stately building, is nothing if not a grand spectacle.

However, the total cost can rise as high as the architecture and unsurprisingly those ‘big statement’ projects can entail extra investment and so easily go over budget: the massive structure on top of Antwerp’s Port House, for example, meant the older, renovated building below needed hefty augmentation.

According to local media, several disputes around the additional works resulted in costs rising by 27% above the initial estimation, to an eventual outlay of €64m.

REUSE AND REIMAGINE However, there are imaginative solutions that don’t cost anywhere near as much: take the Leuvehaven port development in Rotterdam. The new building was circumscribed in its footprint – although 116 metres long, it had to sit on the same narrow site as its predecessor. So architects Moederscheim Moonen took an interesting approach: “The basic steel structure was well engineered, so we said we’ll retain as much of the original construction as we can, as well as reusing ‘donor’ steel from other pavilions – under demolition – for the building,” says Erik Moederscheim.

22 | JANUARY/FEBRUARY 2019

8 Leuvehaven port retained much of the original steelwork for its re-development

Keeping the ‘ribs’ of the original meant that 25% to 30% of the structure has been reused, along with steel from the other pavilions under demolition.

Mr Moederscheim adds: “Of course, the choice was made for sustainability but on the other hand, it definitely helped the cost and logistics issues – especially as the site is in the city centre, a small but difficult location.”

Paint can also have transformative effects. Take, for example, Buenos Aires’ Sand Terminals which provide around half the material used in the city's construction efforts.

Huge murals by well-known artists Bernado Ezcurra and Alfredo Segatori completely cover no less than 15 buildings, transforming them from dilapidated structures into gigantic, very visible works of art evoking the old industry, colours and nature of the area. A number carry an ecological message, focusing on threatened indigenous flora and fauna.

Imaginatively, the themes don't stop at the buildings as the colours are also picked out by the breakwater blocks.

While the total price came to around $200,000, a little clever negotiation “meant it didn’t cost us anything”, says the port's Ramiro Lopez Saubidet, himself an architect with an eye for design. He explains the terminals’ permits used to come up for yearly renewal, but the port offered to extend this to an initial six years, allowing the operators time to develop a business case, if they agreed to paint, renovate and modernise, with the port holding the strings on visual specifications. The operators’ costs were also alleviated by a sponsorship deal with a paint manufacturer.

How long will these murals last? This is an important point, given the harsh, wet, salt and sand environment: Mr Saubidet explains that the surface will make it through at least five years, but after that, it will need restoration or repainting.

A COAL SOLUTION Occasionally, the requirements of air pollution mitigation and rising eco-awareness push ports into a corner, so a few have made a virtue out of a necessity. Mr Lemaire explains that the

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

coal terminal at La Coruña in Spain has moved from being a practical way to reduce coal dust pollution and noise, to being “an iconic building now called La Medusa by the citizens”. It’s so much part of the city’s identity that while its use might be coming to an end, no-one wants to let go of it and ideas to repurpose it as a concert hall or leisure centre have been put forward.

The Marchwood Energy Recovery Facility has also proved that imagination doesn’t have to come with a big price tag. This waste-treatment facility on the edge of Southampton docks in the UK is an elegant dome with coloured lights around the bottom: viewed from the water it seems to hover like a flying saucer. While it could have been conventionally built with 1,000 tons of hot-rolled steel, the Geometrica prefab dome used galvanized structural tubing joined with high-strength aluminium hubs and weighed in at less than 300 tons.

Interestingly, assembly took place concurrently with the incinerator inside, the shelter allowing the construction schedule to catch up: apparently it had been stretched during the search for an economical solution.

However, a lot of ports will identify with Brussels: regulation means that the port’s activities can’t relocate but have to remain inside the city boundaries, explains Sylvain Godfroid, the port’s communication co-ordinator.

Despite this impediment, the industry has to adapt to the rather well off, aesthetically-conscious neighbourhood that’s grown up around it. One of the concrete plants has therefore decorated its tower using street art. Interestingly, while this might appear to be a straightforward welcome for oftenmarginalised airbrush artists, controversy in the street-art

Credit: Buenos Aires Port

PLANNING: TERMINAL DESIGN

community followed, “as it was an official commission”, says Mr Godfroid. In short, paid work may not appear antiestablishment or clandestine enough for some.

8 The Buenos Aires Sand Terminals murals have turned 15 buildings into very visible works of art

REDEFINING ATTRACTIVENESS Some of Brussels’ industrial businesses are taking it a step further: Inter-Béton, which handles 170,000 m3 of concrete a year, has been stung by the residential community's criticism and was frankly worried about being pushed out of its location.

Therefore, it’s driving ahead with a competition-winning project

Cargo / Passenger and Recreation / Military Facilities Core Services Advisory Services Port Planning and Analysis Environmental Services Engineering Services Coastal Engineering Program Management Construction Services Asset Management

wsp.com/maritime Simon Harries Tel: +44 777 322 8338 simon.harries@wsp.com

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

JANUARY/FEBRUARY 2019 | 23

PLANNING: TERMINAL DESIGN

FASCINATION STREET However, these developments don’t need the patina of age – and ‘old’ doesn’t instantly recommend an edifice. For example, Dublin is demolishing sections of a 19th century stone wall that isolated the port centre from the city, replacing it with a far more open structure of rusty steel beams, an impressive gateway and a plaza that features a relocated 1950s Stothert &

8 Southampton docks is home to this aesthetically pleasing wastetreatment facility Credit: DJM Leighpark [CC BY-SA 4.0]

to bring the concrete plant and its 200-a-day truck visits under a broad, stylish, noise-reducing canopy, which also incorporates offices above. It's not a cheap option, but it's hoped it will help the company to remain in the city.

It’s not just about prettying up or even making buildings environmentally acceptable: it’s also about redefining what is attractive. According to Olivier Lemaire the best of these new construction projects “seek to give an aesthetic vision to an activity often considered industrial”. Or, as one engineer put it, while staring at the imposing remains of a large pump being cleared from a redesigned waterfront: “Why is this not art?”

In fact, that is what is now under consideration. Leuvehaven, for example, is housing a metals and wood workshop used for the maintenance of the historic boats lying in the water outside, but rather than hiding them away, they’re making these old industrial processes part of the focus. The project also incorporates the original gantry crane which will continue to be used “and they've even got a smithy”, says Mr Moederscheim.

There will be some minor noise, but he predicts that rather than simply being a nuisance “it will be appreciated as part of the environment”.

Pitt crane. Again, it’s looking at fascination rather than the regular definition of beauty.

And fascination is something that ports have a-plenty. Mr Lemaire says it’s possible to use the port to showcase landmarks and port-city scenery which “offer a rich spectacle”. He points out that a facility's outskirts often lend themselves to viewing platforms – these opportunities shouldn’t be overlooked but helped along by deliberate planning as they “help create unity between the active port and the city”. In fact, part of the canopy over Inter-Béton’s concrete facility will be open to the public, giving panoramic views along the urban canal.

As Mr Lemaire concludes: “It is a question of changing the citizen’s perception of the industrial building and allowing him to see it ‘like’ a work of art.”

So, maybe ports should stop hiding their floodlights under a bushel and start to show the world at their gates that they are magnificent.

Global provider of process automation solutions for

Gates, Intermodal, Yard and Crane Operations

Automation for Terminal Operations Increase throughput capacity

Expand 24 | JANUARY/FEBRUARY 2019

Reduce operational expenses

your vision

Optimize safety and security

www.visy.fi

sales@visy.fi

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

REGULATION: FUELS

WRITING THE HYDROGEN RULEBOOK FROM SCRATCH

Credit: Community Energy Scotland

Industry is taking notice of hydrogen’s potential as a squeaky-clean fuel for port machinery. Stevie Knight reports

Gaseous H2 “will be very useful for port handling equipment and trucks in the future”, predicts Rosie Mercer, the Ports of Auckland's very own hydrogen development manager: “Heavy machinery isn’t well suited to battery power because of the low range and long charge time, whereas hydrogen offers fast refuelling, a long range and high power output.”

Likewise, California Ports’ ZECAP project, a collaboration between Port of Los Angeles, Toyota, Kenworth and Shell, is developing ten hybrid electric-H2 on-road trucks and a brace of fuelling stations to move cargo throughout the Los Angeles basin and inland to Riverside County, the Port of Hueneme, and eventually to Merced.

Valenciaport, too, is interested in exploring the opportunities, “especially for cargo handling equipment” says energy and safety director José Giménez. The port is currently developing pilots for both reachstacker and ro-ro yard tractor operations: an external supplier will refill a mobile station (delivering 300350 bar gas ramped up from a 200 bar source) as the fuelling point will need to move around the facility.

REGULATORY HURDLES But, what about the regulations? After all, as Mr Giménez adds, as there’s “no experience in the use of hydrogen in ports ... we will need to study how this new situation may interact with current regulation or safety procedures”.

Alexandru Floristean of Hydrogen Europe echoes this point, and adds: “While hydrogen has been handled on an industrial level for decades, using it as a fuel means moving it away from its typical setting. It could mean putting it in a port for example, or right next to another fuel like diesel, or even close to urban areas. The essence of the challenge is a lack of experience.”

He points out that apart from big projects (such as Japan’s plan to ship H2 from Australia to Kobe) compressed hydrogen

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

8 Shipping hydrogen in Orkney required some creative thinking around existing best practices and regulations

seems a likely choice for many facilities. But even if it’s not cryogenically stored, things can still get a little complicated for first movers as “there are myriad rules to study and apply”.

There is a way through. Mr Floristean points to Germany’s approach. “Private actors, working together with authorities, have put a number of hydrogen filling stations in place based on the closest generic laws ... and built up their experience before the supporting regulations and best-practice guidance was decided.”

In the UK too, hydrogen refuelling is becoming a reality.

Charles Purkess of ITM Power says: “There’s been a lot of work to get hydrogen into the UK’s ‘Blue Book’, the established technical guide for fuel storage and dispensing.” This is a big breakthrough “and means that there's now a plug-in facility on an ordinary forecourt”, he says, with several more to follow.

Other organisations are also smoothing the path. Mr Floristean explains how the HyLaw project – managed by Hydrogen Europe – is clearing the way for those that will be tackling “multiple layers of regulation”. This work centres on a publiclyaccessible database that brings together the relevant legal and administrative processes for 18 European countries, highlighting best practices, legal barriers and policy recommendations. “We are making it as simple, but as comprehensive, as possible,” he explains.

WATERY CONCERNS However, while the forecourt refilling element is making good progress, ports also have the waterside to think about.

Despite being a smallish, mostly ro-ro port group, Scotland’s Orkney experience is particularly interesting.

Shapinsay and Eday islands have a surplus of green power, but with Community Energy Scotland’s support they’ve made sure it doesn’t go to waste and they produce hydrogen on the

JANUARY/FEBRUARY 2019 | 25

Container and harbor operations including intermodal freight are sensitive for unscheduled downtime.

An equipment ďŹ re in a material handling machine can be devastating.

Our high pressure pressure water mist ďŹ re ďŹ re suppr suppression ession system is a well proven proven inter international national technique, ďŹ re. Fogmaker has made limiting the risk of ďŹ re.

160,000 installations worldwide.

fogmaker.com fogma akerr..com com

GRQ¡W SOD\ ZLWK \RXU FDUJR

Strategy

Valuation

port sector reform

ďŹ nancial modeling & analysis

business strategy development masterplan

feasibility study business case analysis

public­private partnerships

economic cost beneďŹ t analysis

institutional & regulatory analysis

risk analysis

Financing

Transactions

ďŹ nancial structuring

transaction process strategy

project ďŹ nance

tender document & contract

private placements

bid valuation & negotiation

ďŹ nance procurement commercial & ďŹ nancial due diligence

bid strategy & preparation training & courses Ep\i SSDDD 6 <uk`dod\ (Nk\di) ]gpb;]gpb `n rrr ]gpb `n

spot. While the resulting H2 has been utilised as a local energy resource and (in partnership with ITM Power) runs a fleet of five hybrid electric-hydrogen trucks, there's enough left to ship to a mainland fuel cell.

Transportation by ro-ro required a mixture of rule- and riskbased strategies “to fill in the gaps” says David Hibbert of Orkney Ports. They were ambitious in their research: “We even looked at how NASA handled its rocket fuel,” he says.

Inevitably there were issues to resolve. “The roads had a 25t weight limit ... but the trailer itself was 18t and we couldn’t get an IMDG – International Maritime Dangerous Goods Code – compliant steel tank that would be able to carry a quarter of a tonne of hydrogen and still come in under the maximum,” he explains.

The answer was the procurement of carbon-fibre wrapped alloy tanks that fitted with European road carriage standards.

Mr Hibbert adds: “Extra safety systems for low-flashpoint fuels on the trailers gave us the certification we needed to carry the trucks in ‘freight-only’ mode.”

Moreover, the fuel cell stations which turn hydrogen back into usable electricity, also meant “we had to develop the training to run and maintain these stations at the same time as the physical infrastructure”. Luckily the local technical college was interested, so “it turned into a real win-win” he says.

DRAWING ON EXPERIENCE Orkney is also working on a H2 ferry which is throwing up yet more challenges as there are no ports, as yet, engaged in bunkering.

Experience with other gases could help. Paul Davies of Lloyd’s Register – which has been assisting Orkney – says “regulation ... will likely reflect the developing practice for bunkering LNG”. However, he adds “a safety zone is essential, but this may be far larger than stakeholders are expecting. This could impact on surrounding port activities, and so is a crucial aspect to be addressed”.

It’s a point echoed by Lars Petter Blikom of DNV GL, who explains that as with bunkering other low flashpoint fuels such as methane, there are two ways to tackle it. Firstly, there is taking a deterministic approach which “calculates ... the maximum distance from the bunkering activity at which a cloud ... could still be flammable”. This usually leads to relatively large safety zones as no safeguards are included in the analysis. A probabilistic approach “assesses the maximum distance to flammable concentration of each possible release scenario as well as its likelihood”. As a result, while it’s a longer process, the latter considers the effects and likelihood of various scenarios, including safeguards – so it could be more useful to ports where there’s limited space.

Mr Blikom adds that “the safety distances will be much

Credit: ITM Power

REGULATION: FUELS

8 The regulations around refuelling trucks with hydrogen will pave the way for port handling equipment

farther because of the characteristics of hydrogen – both probability and consequence of an incident will inevitably be larger than for methane”.

SAFETY ZONE QUESTION The issue is also more complex as there will be various amounts stored at different facilities: while ITM Power provides ‘on the spot’ refuelling by creating hydrogen as needed, others may be reliant on being able to store it. Mr Floristean says that in this regard, the Seveso Directive for the safe handling of dangerous substances has “helped create a framework, because although it doesn't talk directly about safety zones, certain obligations apply above and below 5t of hydrogen”. A number of countries are aligning their rules with the directive to be consistent.

It will take time to sort out, but if the shore-side has managed to get it onto a forecourt, despite some authorities initially demanding a 50-metre safety zone, then there’s reason to believe that bunkering too could arrive at a workable agreement.

There are advantages to helping shape the rulebook, but as Mr Hibbert adds, there is a danger that “even though we’ve done all this work, it could be that the eventual regulations will ask for things we didn’t envisage”.

“The reality is that the first in the field will have to put in a lot of effort on mitigation measures,” says Mr Floristean. “But they should not just think in terms of ‘this project’ alone but realise they're building the regulatory foundations for the next one.”

8 Hydrogen fuel dispensing systems could be one answer for ports

While most hydrogen ports will begin modestly on compressed H2, really large projects – whether focused on longer-range vessels or domestic supply – will eventually call for a more energy-dense form but this could be available without cryogenics.

The marine industry is considering the possibility of using a ‘carrier’ liquid such as ammonia or toluene to hold the H2 stable. These liquids have roughly 5/7ths of the energy density of chilled hydrogen and furthermore they are liquid at near ambient temperatures.

Forward-looking ports might even find themselves setting up a processing facility where the H2 is released from its bonds and the carrier is recycled, ready for the next batch.

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

Credit: US Air Force/Sue Sapp

Avoiding cold feet

JANUARY/FEBRUARY 2019 | 27

Experience the progress.

Reachstacker LRS 545 • Proven Liebherr quality & full access to Liebherr global service-network • Hydrostatic drive for stepless speed control – excellent drive comfort • Energy efficient Liebherr diesel engine – up to 30 % less fuel consumption • Wedge shape drive wagon and optimised cabin design – better visibility • Individual wheel drive – agile driving performance and more narrow turning radius

reachstacker@liebherr.com facebook.com/LiebherrMaritime www.liebherr.com

CARGO HANDLING: CRANE DISMANTLING

FINAL CURTAIN CALL FOR OUTDATED CRANES

Credit: O’Brien

Alex Hughes investigates the options for dismantling a crane when it has reached the end of its useful life

Global trade volumes might be increasing year-on-year, but not all existing handling equipment is up to the job of moving it. Cranes that don’t have sufficient outreach to service larger ships are being driven into obsolescence if they can’t easily – and economically – be lengthened, while others are being taken out of service because they fall foul of legislation.

For example, the European Union’s 2006 Machinery Directive (2006/42/EC), which aims to improve the safety standards of all types of machinery, has been known to prompt crane scrapping or force early upgrades. Thorsten Rolfs, principal engineer – infrastructure in the marine infrastructure and cranes department at DNV GL – Maritime, is an expert in helping operators to determine which approach to take.

“2006/42/EC is not a standard. A standard is easy to understand: either you fulfil it or you don’t. EU directives are less clear cut,” he says.

The machinery directive covers all machinery, so it’s not always easy to know whether a port crane is compliant or not.

However, the onus is on manufacturers and equipment operators to demonstrate that they have done everything reasonable to reduce risk.

“There isn’t a single way to comply with this directive.

Operators are free to choose from a variety of solutions; however, all are risk-based,” Mr Rolfs says.

“DNV GL looks at how a crane is being used. If we determine that it is non-compliant, we suggest various solutions as to how they can move into compliance,” Mr Rolfs explains.

He gives the example of a crane operating in the Black Sea dating back from before the directive was introduced, which was deemed no longer compliant following a recent DNV GL inspection. However, replacing it with a new crane would have been four times the capital cost of the existing unit.

“Because It wasn’t being heavily used, we suggested a stepby-step upgrade and have just issued the final [compliance] certificate as a result of that work,” says Mr Rolfs, noting that partial rebuilds or upgrades are often a cheaper solution to scrapping.

Machinery must be checked a minimum of once a year, but crucially compliance doesn’t have a set end date. Furthermore, if new technology becomes available or if an incident occurs then changes have to be made. Even if a crane does start developing problems, it may continue in service, albeit operating with reduced workloads or functionality, until such time as it can regain compliance, but a compliance recovery plan has to be drawn up as soon as non-compliance is recognised.

Cranes with major problems, such as the loss of their safety brake, must be instantly shut down and only re-enter operations once these problems are fixed.

CHANGING WITH THE TIMES Operators today realise that they can’t buy a brand new crane and expect it to operate unchanged throughout its working lifetime; they have to continue to show that a risk-based analysis has been carried out, necessary measures adopted, and certification obtained. However, not all cranes operate in the same way at different ports, so the directive is open to interpretation.

OBSOLESCENCE QUESTIONS It is not just safety compliance that determines whether a quay crane can remain in operation or not. Sometimes market developments make existing units obsolete.

Recently, TPS, in Valparaiso, had a crane demolished because it was too small for modern requirements; it had been built in 2002.

“Most shipping companies nowadays operate with postpanamax vessels, so you need a gantry crane that can at least

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

8 The controlled crane collapse at TPS took just five days

JANUARY/FEBRUARY 2019 | 29

THE SIDELOADER SPECIALIST Expand, simplify and make your transport business more flexible with HAMMAR lift. Lift & transport containers, flats or special equipment with capacities up to 45 tonnes. All with a single unit and driver. With 44 years experience and units sold in over 114 countries, Hammar offers a reliable, safe and high quality logistic solution tailored to your needs.

info@hammar.eu

+46 33 29 00 00

www.hammar.eu

.R TVMRX WMRGI 5SVX XVEXIK] QEKE^MRI .R TVMRX WMRGI 5SVX XVEXIK] QEKE^MRI T TVSZMHIW OI] MRWMKLXW MRXS XLI MWWYIW ERH VSZMHIW OI] MRWMKLXW MRXS XLI MWWYIW ERH H HIZIPSTQIRXW EǺIGXMRK XLI TSVX STIVEXMSRW IZIPSTQIRXW EǺIGXMRK XLI TSVX STIVEXMSRW tenance industries. and port main maintenance Informing Informing over over

SUBSCRIBE NOW NO W to to receive receive your your three three month month free free trial • Ins Instant tant access tto o industry industr news • Expert opinion • Monthly Monthlly features features • Weekly Weeklly eNewsletter eNewsletter

Ȧȏ ȁȍȉ Ȧȏ ȁȍȉ port and terminal professionals pr ofessionals around around the world world

8 84 .,3 95 +47 =497 8-7** 2438- +7** 87.&1 4 .,3 95 +47 =497 8-7** 2438- +7** 87.&1 visit portstr portstrategy.com ategy.com email subscrip subscriptions@portstrategy.com tions@portstrategy.com or call ++44 44 1329 825 335

portstrategy.com portstrategy.com

reach 22 rows, whereas the maximum outreach of the dismantled crane was just 14 rows, so was clearly inefficient,” a TPS spokesperson told Port Strategy.

TPS, however, retains a similar unit to handle the 3% of noncontainerised general cargo that it generates.

O’Brien Demolition was brought in to dismantle the crane, following a recommendation from TPS’ partner TIL – there are only about three such specialist companies in the world.

Valparaiso’s city authorities did express their initial concern, given a lack of local experience in this field, and it took around three months to get the necessary permission.

“The controlled collapse took just five days. O’Brien Demolition arrived at the terminal on September 27 to do the first on-site visit. After that, it was a question of preparing everything for the work, which took place on October 1.

Everything went perfectly and the company was able to leave the terminal the same day,” says TPS. The controlled collapse took place over eight hours, although disposal of the metal structure was undertaken by Gerday Aza and took an additional month. Gerday Aza had offered to dismantle the crane piece by piece, but this option would have taken too long.

“The process was a complete success. However, looking back, we took many safeguards that were not necessary. For example, we put up a fence to keep people out of the area, even though none of the pieces of the falling crane went there,” notes TPS. WEATHER CONCERNS O’Brien Demolition was also called in by APM Terminals in December 2018 to dismantle a crane recently knocked over by a ro-ro vessel in bad weather. Speaking to Port Strategy from the port, projects manager, Callum O’Brien, noted that this type of emergency is unfortunately quite common.

“We recently took down a ship-to-shore gantry crane in the Bahamas, which had been irreparably damaged by a hurricane,” he recalled, adding that the company often has to react at a moment’s notice to carry out emergency demolition or dismantling.

Other than weather, emergencies are also down to human error or accidents linked to serious structural failure.

O'Brien invariably undertakes a controlled collapse of cranes, since this is usually the safest and most cost-effective method.

This involves making strategic cuts to the structure, which is then pulled to the ground using tugs or reachstackers.

Credit: O’Brien

CARGO HANDLING: CRANE DISMANTLING

“It takes no more than six hours to demolish a crane using this method,” Mr O’Brien says. In contrast, using mobile cranes to dismantle a crane piece by piece can take up to six days and involves more risks, since the dismantling crew will be working over 60 metres above ground level. Terminal operators prefer not to close the quay for too long, either, since that leads to a loss of production.

“Before we offer a quotation for any works, we need a lot of information from the client and also carry out a site survey to ensure we don’t encounter any nasty surprises when we arrive on site. From the information gathered, we put together a bespoke demolition/dismantling package that best suits the port’s needs,” he says.

High winds are the company’s greatest enemy, since O’Brien needs a good, clear day to undertake a controlled collapse. For a longer dismantling operation there needs to be at least six clear days, so this work tends to be restricted to the summer months.

“We also have to be very aware of the environmental aspects of what we do,” adds Mr O’Brien. “For example, if a gear box breaks open a large amount of oil could potentially get washed into the sea, which is why we drain oil from the crane prior to the collapse to minimise the risk of an oil spillage.”

During these types of operation a sand type material is laid on the quay to cushion the impact of the falling crane but in some cases steel is also used to protect the quay infrastructure itself.

8 Bad weather and allisions can put cranes out of service for good

Specialists in the dismantling field UK-based BDB Dismantling undertakes three or four crane dismantling projects each year, usually because the crane has aged.

The other major factor is obsolescence, with three container gantry cranes at the Port of Hull recently dismantled piece by piece by BDB for this very reason.

“There appear to be very few companies prepared to dismantle redundant port cranes. This could be because dismantling work can be quite complex, particularly when a crane is old and relevant information about it unavailable,” says the company’s director of estimating Carl Payne.

Asked why the company doesn’t use controlled collapses, he says these can have

a major impact on ground conditions, so BDB prefers to avoid them, even though its preferred method does take more time.

“There is always time pressure whenever we are called in to do work for ports. However, safety always takes priority. There are invariably unexpected delays, too, which frequently occur because of the need to prioritise vessel handling or because of high winds,” says Mr Payne.

The aforementioned Hull project involved assembling a self-propelled modular trailer on site and moving the cranes from their original berth to an off-site location for dismantling in a controlled and safe environment, where disruption to surrounding port activities was minimised. By taking this more cautious

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

8 BDB’s Carl Payne says that there are always time pressures whenever they are called in to work on cranes for ports

approach, little groundwork needed to be undertaken, although the ground bearing pressure does have to be known before any work starts.

JANUARY/FEBRUARY 2019 | 31

REGIONAL SURVEY: AUSTRALASIA

PULLING NEW ZEALAND’S PORT FAMILY TOGETHER Dave MacIntyre examines how a government review might bring the country’s northern ports closer

QUESTION OF LOCATION However, the question of where a new port could be situated has become only one part of the equation.

If it moves east, closer to its big rival Tauranga, is there sense in combining the two into a super-port in the Firth of Thames?

Or should the focus be to the north, with the emerging Northport becoming part of the solution for container and car traffic in addition to its current bulk focus?

If that is to be the case, there needs to be serious investment in the rail and road links that connect Northport to Auckland, as well as development of inland ports and distribution centres.

With about 55% of New Zealand’s freight originating in or destined for the Northland, Auckland, Waikato and Bay of Plenty regions, an agreed investment strategy is crucial.

This review needs to provide clear recommendations for the Government to take action, in order to give a way forward for the manner in which the ports, rail and roads in the upper North Island will develop over the next 30 years. The ports industry will be awaiting a Government announcement for the review to report back, with great interest.

AUTOMATION PROJECT Meanwhile Ports of Auckland is not standing still.

Whatever the review recommends, it knows it has to make the best out of its current footprint for a generation or more to come, while a new port is built.

It is undertaking a massive automation project to become the first in New Zealand to use automated straddle carriers to load and unload trucks and to operate the container yard.

There is also a “world first” element to the project as this is the first time a hybrid operation has been planned where manually-driven straddles are retained and have to interface with automated straddles.

32 | JANUARY/FEBRUARY 2019

Credit: Michael Coghlan, Flickr, CC BY-SA 2.0

As New Zealand headed into 2019, the question consuming the ports industry was how the country’s northern ports – including the two biggest, Tauranga and Auckland – will be shaped by the Government’s Upper North Island Supply Chain Strategy review.

The review has the brief to be “a comprehensive ... logistics and freight review to ensure New Zealand’s supply chain is fit for purpose in the longer-term” and it appears to be all-embracing.

Its genesis was the desire by Aucklanders and their city council to move the Ports of Auckland away from its current location, thereby ... delivering valuable downtown waterfront back to the city.

Ironically, while it wants the port to move, Auckland Council is concerned that it retains control over the revenue streams it receives from the port – a NZ$51.1m (US$34.5m) dividend last year. Just before Christmas, Mayor Phil Goff wrote to the chair of the review, concerned that there might be pre-determination in the review panel to favour a move to Northport, which is in another regional authority's jurisdiction.

The port believes productivity would be lost if transfers between the yard and ship-to-shore cranes were handled by automation.

The project team is having to make do with tiny pockets of space to erect and trial the auto strads because Fergusson Terminal is a major working area which is already under space pressure.

Despite these challenges, the project is on target to go live late 2019 and deliver immediate benefits.

It must also fit in with the Fergusson Container Terminal Extension Project that has been underway since the early 2000s. A reclamation will increase the yard area by several hectares. The project also includes a 50-metre extension northward of the main terminal wharf and the creation of a new Fergusson North Wharf, giving the container terminal a muchneeded deepwater third berth.

Auckland’s smaller northern neighbour, Northport, is also expanding, irrespective of the Upper North Island Review.

In the last couple of years, it has built on its steady growth in logs, gained a foothold in ISO tank container traffic and a new liner container shipping service is being provided by MSC, with kiwifruit exports being one of the core export cargoes.

Northport is looking to the future with its own strategic planning document, A Vision for

8 There’s a desire to move Auckland away from its city location

8 Neil Chambers of the CTAA says the price war on stevedoring costs in Australia is solely about winning shipping line contracts

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

REGIONAL SURVEY: AUSTRALASIA

‘‘

[There is] a ‘rebalancing’ away from quayside revenue to landside revenue collection NEIL CHAMBERS, CTAA

Growth. The vision explores possible expansion options, including the ability to more than double the port’s linear berthage to 1,390 metres and expand its footprint from 48 hectares to 75 hectares.

CHARGE CONFUSION In Australia, the most contentious issue in the port sector is the infrastructure charges imposed by stevedoring companies, who argue that increasing land and rental costs are forcing them to pass on the cost burden to landside operators (road and rail), and in turn on to Australian importers and exporters.

The fight against the charges is being led by the Container Transport Alliance Australia, the Australian Peak Shippers’ Association and the Freight Trade Alliance, who say the charges are being applied with no negotiation, and in most jurisdictions, with no independent monitoring of efficiency and supply chain performance outcomes.

The critics are having some success in their efforts. In October the Victorian Minister for Ports, Luke Donnellan, said the Government was “bringing forward a review into regulating pricing and charges ... following recently announced increases in stevedore infrastructure charges.”

CTAA, APSA and FTA have continued to urge the NSW Government to establish an investigation into the nature of the infrastructure charges and their impact on container trades through Port Botany.

They argue the Government has powers under the Ports and Maritime Administration Amendment (Port Botany Landside Improvement Strategy) Regulation 2010 to “regulate the charges that may be imposed by the stevedore ... for or in connection with the operation or provision of facilities or services of the port-related supply chain at Port Botany”.

Pressure is also being applied to the Queensland Government after DP World Australia announced increases at Brisbane of 68% from A$38.75 per full container to A$65.15.

COMPETITION CALLS Above all, the critics do not understand why competition watchdog the Australian Competition and Consumer Commission has not acted. They have now received a response from the ACCC chairman, Rod Sims, confirming that an assessment is ongoing into whether the stevedore contracts contain unfair contract terms. It is expected the assessment will conclude soon.

Neil Chambers, director of the CTAA, told Port Strategy that a “price war” to win shipping line contracts is behind the whole issue. “[There is] a ‘rebalancing’ away from quayside revenue (the stevedores just can’t negotiate higher rates for stevedore services from the shipping lines due to higher levels of stevedoring competition on the east coast of Australia) to landside revenue collection.

“It is far less about rising stevedoring costs. Those initial statements from stevedores have been largely debunked.

Hence the call on the Federal and/or State Governments to intervene to regulate this pricing behaviour.”

Meanwhile the call for ACCC action continues. The CTAA’s ideal negotiated outcome with the stevedores would be service level agreements, with undertakings on both sides regarding levels of performance, and monetary compensation for poor performance.

8 Northport is looking to diversify beyond timber handling

Napier considers share placement The North Island New Zealand port of Napier is looking at expansion via a capitalraising route through a possible share float.

Owner Hawke’s Bay Regional Council is canvassing the idea of floating just less than half of the Port of Napier on the NZX stock market – raising in the region of NZ$181m, to give it the capital backing to build a new wharf and undertake other works.

In December the council voted to continue work on a minority share float on the condition that any float provided for local participation, and that an initial sale of between 33%-45% of the port would be floated.

This was the preferred option compared with raising money from rates, selling a

minority stake to a partner or sale of a long-term lease to an operator.

At the moment, the port cannot take on more debt to fund its own development. It needs access to new capital to fund an investment programme of NZ$320m-$350m over the next ten years.

If it floats enough shares to raise about NZ$181m, it can pay off much of the port’s existing debt, provide a fund to kickstart the investment programme, and then leave the port to self-fund its growth. Forecasts indicate the cargo volume is likely to increase by 26% by 2028.

Staff are to deliver an initial public offering plan

by April for approval by council with the object of completing the offer by the September quarter.

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

8 The Port of Napier is seeking capital to expand

The port has been 100% publicly owned through the Hawke’s Bay regional investment company, a subsidiary of the regional council, since 1989.

JANUARY/FEBRUARY 2019 | 33

MOTORSHIP

THE Djibouti Palace Kempinski, Djibouti Tuesday 19 to Thursday 21 March 2019

Booth number 43

INSIGHT FOR MARINE TECHNOLOGY PROFESSIONALS

The Motorship magazine is a vital VIWSYVGI JSV WLMT S[RIVW WLMT builders and all who are connected with shipping and the sea.

Informing over

Ȧȟ Ȯȉȉ

marine professionals

SUBSCRIBE NOW to receive your three month free trial • • • •

Instant access to industry news Expert opinion Monthly features Weekly eNewsletter

TO SIGN UP FOR YOUR THREE MONTH FREE TRIAL visit motorship.com email subscriptions@motorship.com or call +44 1329 825 335

motorship.com

PORT PROFILE: TAURANGA

TAURANGA’S INVESTMENT STRATEGY PAYS OFF Dave MacIntyre discusses how a focus on risk management has paid dividends for New Zealand’s North Island port

8 Tauranga is the only Australasian port capable of taking boxships in the 9,500 teu class

A huge capital dredging investment, underpinned by a strategy to prudently manage financial risk, is paying off for the Port of Tauranga.

Situated in the north east of the North Island, in the Bay of Plenty, Tauranga has evolved from being an almost-exclusively bulk and breakbulk port in the mid-1990s into New Zealand’s biggest container port, while maintaining bulk and breakbulk exposure.

It is also New Zealand’s biggest bulk port, primarily exporting logs, pulp, oil imports and fertiliser, which gives it a diversified income stream.

The NZ$350m (US$237m) capital investment programme has been the springboard to attracting calls from larger vessels, and the company’s latest results reflect the growth that has flowed from that. The port’s first quarter 2018-19 trade volumes grew 8.3% on the same period last year.

From July 1, 2018 to September 30, 2018, the port handled more than 6.6m tonnes of cargo. The increase was driven primarily by log exports, which were 14.7% higher compared with the previous corresponding period, and transhipped containers, which increased 11.4% in volume.

Overall container numbers increased 0.7% for the threemonth period, to just under 296,000 teu, indicating that the port is on track to handle around 1.2m teu in a 12-month period. In 2018, it became the first New Zealand port to achieve a 1m teu throughput in a year.

Targeted full-year earnings are expected to be between NZ$96m and NZ$101m, compared with a record net profit after tax of NZ$93.4m for the year ended June 2018.

CONSIDERED RISK MANAGEMENT Underpinning this growth has been the prudent risk management of the capital investment decisions, Port of Tauranga chief executive, Mark Cairns, told Port Strategy.

“An investment of NZ$350m may not be a big chunk of money to many port investors but it was to us. Our board needed comfort that it would have payback.

“We found that comfort first through a ten-year deal with Oji Logistics for paper and pulp exports and then secured a second ten-year deal with Kotahi [the logistics arm of dairy giant Fonterra] for dairy and other container throughput.

“That mitigated enough of our risk to proceed. We had the

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

consents ready to go so we didn’t have to wait long.

Subsequently, we have done a further ten-year deal with Tauranga Kiwifruit Logistics and Zespri [New Zealand’s kiwifruit exporter] to give us further confidence in the future.”

The payback has come faster than expected. Container volumes have increased 24% since the dredging was completed in October 2016.

“We got to 1m teu much quicker than we thought we would,” says Mr Cairns. “Our transhipment volumes have also exceeded expectations.

“It is a result of the bigger ships that have come as a result of the capital dredging programme. When we planned the dredging we were thinking we might attract ships in the 6,500teu class. We had finished the dredging when Maersk indicated they were looking at 9,500-teu class. We had to get the dredger back to widen the channel.”

The transhipment volume growth is an important pointer to Tauranga’s role as a hub port, attracting the biggest boxships to call in Australasia.

FORWARD PLANNING Looking ahead, Tauranga is aware it needs to plan for continuing rapid expansion. International terminal planning expert TBA was brought in to advise on the layout of the Sulphur Point terminal.

Its advice resulted in a switch of emphasis, away from looking purely at the terminal yard capacity to focusing more on berth length as the constraining factor. As a result, Tauranga intends to extend its container berths south of the current wharves on existing port-owned land, as part of its focus on the next stage of cargo growth.

A ninth container crane has also been ordered for delivery in 2020. Future planned changes include installing automated gantry cranes and moving stacks of empty containers off-wharf to free up the terminal.

Mr Cairns believes that with the right investments, the terminal could be equipped to handle between 2.8m and 3m teu a year.

Of its 190 hectares in land holdings, Port of Tauranga has approximately 40 hectares of land still available to accommodate cargo growth.

Consents are already being sought for several of these future-proofing initiatives.

8 Tauranga’s Mark Cairns says the port reached 1m teu much quicker than it thought it would

JANUARY/FEBRUARY 2019 | 35

AREA SURVEY: EAST COAST SOUTH AMERICA

NOT-SO-FOND MEMORIES HAUNT SANTOS

Credit: APM Terminals

Alex Hughes explains why 2018 will be one that Latin America’s largest port will want to forget

2018 was not a year that CODESP, the body that oversees Latin America’s largest port, Santos, will want to remember.

Investigations began on various current and ex-officials of the organisation for major fraud in respect of contracts signed with third party providers, in what is known as ‘Operation Triton’.

CODESP’s former chief executive, José Alex Oliva, was arrested, joining several senior colleagues who are all under investigation as part of the police probe. Luiz Fernando Garcia, who was brought in to replace Oliva, immediately embarked upon a major restructuring of the management team.

Legal action was also taken against the port’s largest container terminal, BTP, by bonded warehouse provider Marimex, which operates a facility just outside the main port area. It argued that BTP should not be allowed to apply an additional terminal handling charge (THC2) as a condition for the release of imported containers.

Marimex argued that BTP competes with it in the container storage market. So, while BTP might choose not to levy THC2 on containers stored at its own facilities, those released by it for storage at Marimex would have to pay the levy, which should be interpreted as unfair competition, since BTP is abusing its dominant position.

The case was brought before Brazil’s competition court, CADE, which ruled on October 16 that BTP had to refrain from imposing THC2 for containers heading for independent customs terminals in the Port of Santos’ natural hinterland.

According to CADE, by levying THC2, BTP may have affected competition in the market, while artificially increasing its own

36 | JANUARY/FEBRUARY 2019

8 APM Terminals’ owned BTP successfully appealled a legal ruling on THCs

revenue. In addition, it would hamper the activity of independent bonded warehouses, making them a less competitive option for importers. Nevertheless, BTP successfully appealed the ruling.

According to BTP director, Antonio Passaro, the tariff is charged “for the service we provide at our facilities”, and is a practice also observed in ports in other countries. He was particularly critical of CADE’s understanding of THC2, stressing that its earlier ruling meant it was effectively “trying to regulate the regulator”, the reference being to Antaq, which regulates the level of THC2.

OVERCOMING PROBLEMS Despite the various legal shenanigans, container traffic through Santos for the first ten months of 2018 was up 5.4% to reach 3,456,578 teu.

The majority of the traffic is nowadays divided between four main terminal operators, with Brasil Terminal Portuária (BTP) handling around 35% of the traffic, Santos Brasil 35%, DP World Santos 15%, and Libra Terminais 13%.

For the 10 months to the end of October, BTP, which is arguably South America’s largest container terminal, handled 1,221,862 teu, equivalent to growth of 2.7%. Close rival Santos Brasil weighed in with a further 1,221,488 teu, up 11% on the same period in 2017. DP World Santos registered a 4% drop in traffic to 538,961 teu, while Libra Terminais posted a 47% rise,

8 Dallas Hampton, DP World Santos, welcomes the strong competition between the port’s terminal operators

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

increasing traffic to 452,263 teu. Santos, in line with other ports in Brazil, has seen an increased presence of foreign ownership of its terminals in recent years. In December 2017, for example, Embraport was acquired in its entirety by DP World and traded throughout 2018 as DP World Santos. For the first 11 months of 2018, throughput amounted to 600,053 teu, which was a 3.7% decrease over the 623,143 teu posted for the same period in 2017.

Political problems faced by Brazil in recent years have created obstacles to the country’s economic growth in several sectors, concedes Dallas Hampton, DP World Santos chief executive. “Brazil is a vibrant export economy and there is strong competition among the different marine terminal operators. This is healthy and we welcome it.”

However, he notes that the industry at large saw container traffic impacted by the general caution in the market given the uncertainty in global trade throughout 2018.

“As the largest economy of Latin America, Brazil occupies an important position on the international trade map. Facilitating trade with Brazil will therefore be one of the most effective ways to promote the country’s long-term economic growth.”

DIVERSIFICATION KEY While it is upbeat about the future container handling aspect of the terminal, DP World Santos is also focussing on other types of cargo, especially pulp, which forms part of its diversification strategy. It has signed a long-term agreement with Fibria, one of the world’s leading producers of eucalyptus pulp from planted forests. The partnership includes the construction of new logistics structures in the dedicated terminal area, warehousing and the handling of pulp cargo.

“The ongoing construction of the Fibria port and logistics facilities at DP World Santos is a major project. The infrastructure plan includes 135,000 square metres of warehousing, an overpass road to connect the facility to Fibria’s dedicated berth, expansion of the existing quay to accommodate the docking of two more vessels, and a rail link. When fully completed in 2020, DP World Santos will have a capacity to handle 3.3m tons of pulp cargo,” says Mr Hampton.

The deal with Fibria will include warehouses and equipment for storage, with investment to total R$700m (US$188m) in 2018-2020 as part of a concession that will see DP World Santos port services used until 2039.

DP World Santos also has a further 157,000 square meters earmarked for future expansion in line with market demand.

Current box handling capacity is 1.2m teu in what is already one of the most modern container terminals in Brazil. The location of the terminal gives it strategic access to sea, road and rail, while the facility has 653 metres of berthing line and 207,000 square metres of terminal area.

As for draft, the Santos terminal offers up to 16 metres alongside its quay. At present, the largest vessel calling is Zim’s 11,000 teu Cape Sounio, which commenced calls in June 2017.

“The Port of Santos is presently capable of handling vessels with a draft of up to 13.5 metres. However, to handle the next generation of mega ships, the port needs further dredging and Santos Port Authority is working to complete the necessary deepening work,” says Mr Hampton.

In line with other Brazilian container terminals, use of rail to move containers is relatively low, around 3%, although DP World says usage is rising rapidly.

Credit: DP World

AREA SURVEY: EAST COAST SOUTH AMERICA

connects the Caceres lagoon, in Bolivia, to Brazil’s Paraguay River, at the very head of the Paraguay-Paraná inland waterway system.

Antonio Rocha, who is the head of customs dispatchers at the city of Santa Cruz, believes that two terminals will be established: one to handle export minerals and the other aimed at attracting general cargo flows. Once Bolivia has access to the Atlantic Ocean not only will it boost GDP but it will also attract private investment of an estimated $700m in the local economy over the next five years.

However, to be a success, both road and rail infrastructure will have to be improved. Road building may take four-five years, given that it will require embankments to overcome substantial swampy and waterlogged terrain. Rail infrastructure will probably take a little longer and be more expensive.

Government policy is to use the port to export processed iron from El Mutún, on the border with Brazil, since this has estimated reserves of 40bn tonnes. Chinese investors have already moved in, having built a steel mill in the locality, specifically to cater for their own demands.

Furthermore, rather than using the Chilean ports of Arica and Antofagasta, Bolivia aims to export urea and ammonia from the Bulo Bulo hydrocarbon industry through Puerto Busch, as well as potassium chloride from its lithium industry in the Andes.

The inland waterway system as a whole annually carries grains, soybeans, sunflower oils and derivatives worth $1.2bn, as well as export clinker and cement.

“The natural markets [for these Bolivian products] are in the south: in Argentina, Paraguay, Uruguay, and Brazil; and also in Europe,” notes Mr Rocha.

He also confirms that local exporters are looking optimistically at the Bolivian government’s project to create the South American Central Bioceanic Corridor. This will link the Peruvian Port of Ilo, on the Pacific Ocean, with Santos, in Brazil, by rail, crossing central Bolivia from east to west in the process.

8 DP World has a diversification strategy for its Santos hub

8 Santos is Latin America’s largest port

BOLIVIA’S WATERWAY In land-locked Bolivia, the government has allocated $250m of public money to develop Puerto Busch, which is located on the Canal Tamengo. This 11-kilometre long natural-artificial canal

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

JANUARY/FEBRUARY 2019 | 37

THEOPINION

COLUMNIST

ANDY BARRONS, NAVIS

Navis’ Andy Barrons expects increased tech spend and a brighter future for the industry in 2019 The ocean shipping landscape is constantly evolving; from changing political climates to the need to transform and digitise, the industry consistently faces business, economic and operational challenges.

While fears and uncertainty surround a number of issues that could sidetrack the industry’s recovery, respondents from a cross section of the global maritime industry anticipate making new investments to increase operational intelligence and efficiency over the next year.

This is one of the conclusions drawn from an inaugural Business Bellwether Survey that Navis released in co-operation with the Business Performance Innovation

EQUIPMENT BRIEFS ❙ Kalmar wins Chilean

contract Kalmar has secured a contract to supply six of its Gloria reachstackers to Chile’s Sitrans Servicios Integrados de Transportes Limitada (Sitrans), part of the Ultramar Group.

Three of the machines are destined for the company’s container terminal in Valparaiso, while the remaining three will head to Sitrans’ San Antonio terminal, both in Chile. The new units are replacing older machines and will join a large existing fleet of Kalmar machines, including empty container handlers, already operated by the company.

The Sitrans units will include a number of features designed to increase operational safety, including the Kalmar Reverse Warning System to give drivers greater visibility while reversing and Kalmar Insight, a performance management tool that provides a “clear overview of fleet operations to improve transparency and minimise unplanned downtime”.

38 | JANUARY/FEBRUARY 2019

POCKETS OF OPTIMISM FOR 2019 Network. The survey explored business sentiment and priorities across the maritime industry and found, despite some dark clouds hovering over the industry, a strong belief that using technology to achieve greater collaboration and data sharing will be critical to better performance in 2019 and beyond.

According to the survey, a third of all respondents indicated they are “extremely concerned” about trade tensions, and although the effects of increased tariffs and restrictions on trade between the US and China have already begun to be felt, the concerns about trade protectionism do not outweigh the industry’s confidence in business improvement.

In addition to trade wars, as with many other industries, cyber security threats are also a prevailing concern. As ship- and shore-based operations continue to become more connected, the potential threat to preserving

maritime cyber security will also heighten in both frequency and in the extent of repercussions. Other global industry concerns include fuel costs, continued industry consolidation, labour disruption, and a lack of process efficiency throughout the ocean supply chain.

Despite these concerns, 82% of the study's participants predicted either an increase in profitability over the next year or stabilisation and a reduction in losses compared with 2018. The opportunity for industry growth in the coming years appears to be significant, and the changes in shipping supply and demand over the past year have bolstered the appetite of industry executives to leverage the rapid pace of

Delivery of the machines is scheduled to take place during the first quarter of 2019.

world’s largest container cranes, including super-post panamax and megamax cranes, to US terminals.

Since 2001 it has supplied 20 large ship-to-shore (STS) container cranes to the New York/New Jersey region, most of which were megamax cranes, substantially larger than super-post panamax cranes. The manufacturer will hand over a further two megamax STS cranes in the first quarter of 2019 to PNCT at the Port of New Jersey.

❙ Crane manufacturer

rebukes US claims Liebherr Container Cranes has refuted US claims that China has the only manufacturers of lowprofile cranes – used at ports close to airports – and that super-post panamax cranes are only available to a limited degree outside of China. The claims, made to the US Trade Representative by the American Association of Port Authorities, “may lead to a false impression/unbalanced view of the container crane market in the US”, said a spokesperson for Liebherr Container Cranes.

Liebherr Container Cranes told Port Strategy that it had supplied large cranes, up to megamax size, to the US market without any limitations and had also supplied low-profile cranes in the form of articulated boom cranes, which are suitable for use close to airports where there are restrictions on crane height. In addition, Liebherr added that it has supplied some of the

innovation in the technology space to their advantage. The challenge will be in focusing on advancing efforts aimed at improving the critical information links of the ocean supply chain to maximise performance and execution.

LOOKING FOR OPPORTUNITIES To capitalise on opportunities in the upcoming year, industry leaders are looking to a variety of sources for improving performance within their own organisations. Improvements to process quality and efficiency will prove to be critical and approximately 90% of respondents expect their companies to increase technology spending in the coming year. This industry

The opportunity for industry growth in the coming years appears to be significant

❙ Hydrogen machinery

first in Europe The Port of Valencia will use hydrogen battery-propelled machinery to become the first port in Europe to incorporate hydrogen energy to reduce emissions and the environmental impact of its operations. A reachstacker and terminal tractor will be operated using hydrogen batteries as part of a pilot project which also includes the installation of a mobile hydrogen supply station, or “hydrogenera”, which in the initial phase of the ‘H2Ports’ project will work in the Grimaldi (Valencia Terminal Europa) and MSC

terminals in the Port of Valencia.

This station will be developed with safety and economic profitability in mind and with the aim of contributing to the decarbonisation of the logistic-port chain. Part of the port’s plan for the development of renewable energies, the €4m H2Ports project has received funding from the Fuel Cells and Hydrogen Joint undertaking (FCHJU). It will also involve the Valenciaport Foundation, the National Hydrogen Center, MSC Terminal Valencia, Grimaldi Group, Hyster-Yale, Atena, Ballard Power Systems Europe and ENAGAS. ❙ Kalmar supports

automated VICT terminal Kalmar has signed a maintenance and support agreement with International Container Terminal Services covering the automated container handling solution operating at Victoria International Container Terminal (VICT). The maintenance and support agreement for Australia’s first fully automated container terminal covers all aspects of the OneTerminal automated solution,

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

THE OPINION

wide investment in new technology signals their confidence that digital transformation will be key to their competitiveness and the long-term health of their businesses as well as the industry as a whole.

The study also indicates the organisational and cultural challenges the industry faces.

There is a dichotomy between the high priority given to improving performance and industry health by leveraging new technology, and the slow progress to date in achieving digital transformation.

We are also seeing that data standardisation is needed as a pre-requisite for digital transformation and is subject to the industry culture and the capacity to share data.

Tougher mid-term trends, a more uncertain global economy and other political concerns have not stamped out a relatively positive outlook for industry participants serving at the heart of global supply chains. At least in sentiment, many see opportunities to improve collaboration and operational

which comprises Navis N4 Terminal Operating System (TOS), 20 Kalmar automated stacking cranes (ASCs) and 11 Kalmar AutoShuttles (TM). The Kalmar Terminal Logistics System (TLS) conducts routing and execution for automated operations based on the orders from the Navis N4 TOS. TLS is connected through the open Kalmar Key interface to five automatic neo-Panamax ship-toshore (STS) cranes. ❙ South Carolina improves

its eco rating Konecranes is to supply South Carolina Ports Authority (SCPA) with three Konecranes RTGs equipped with hybrid power packs designed for eco-efficient operation and uncompromised performance. The hybrid system used in the RTGs will feature a lithium-ion battery pack and advanced battery management system that will monitor the charge level and the general health of the batteries.

Konecranes will be able to monitor the status of this system via TRUCONNECT remote connection.

The hybrid system, which is

8 Andy Barrons is chief strategy officer at Navis, responsible for corporate strategy and portfolio product management.

8 The study predicted that technology will allow the industry to achieve greater collaboration and data sharing in 2019 and beyond

We believe that together we can improve our local air quality, maintain port efficiency and ensure the gateway remains a place for economic prosperity for our entire region

least 85%, as an equivalent to a 2007 engine. LNG, CNG and propane-fuelled trucks qualify under the Clean Truck Program and may enter the ports’ container terminals without meeting the 2007 engine requirement.

planning across the supply chain and have a strong point of view on how to achieve a more efficient and effective global supply chain.

Northwest Seaport Alliance co-chairs Courtney Gregoire and Don Meyer modular and retrofittable, also comes with an eco-efficient Tier 4f engine that will charge the batteries when necessary. The RTGs will have a lifting capacity of 50t while stacking containers 1over-5 high and 6-plus truck lane wide. They will be equipped with the Active Load Control system, which eliminates container sway.

They will also be equipped with auto-steering and truck lift prevention features. Delivery of the cranes is expected in the first quarter of 2020 to the Wando Welch Terminal, Charleston, South Carolina, US. ❙ NWSA engine emissions

rule kicks in As of January 1, 2019, only trucks with a 2007 or newer engine or equipped with a certified retrofit are allowed to enter the international container terminals of The

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

Northwest Seaport Alliance (NWSA) under its Clean Truck Program rule.

The Clean Truck Program requirements reduce diesel particulate matter emissions by up to 90% per truck and were established by NWSA, a marine cargo operating partnership of the ports of Tacoma and Seattle, to reduce emissions and improve air quality. NWSA co-chairs Courtney Gregoire and Don Meyer said: “We appreciate the partnership and hard work of everyone involved in this effort. We believe that together we can improve our local air quality, maintain port efficiency and ensure the gateway remains a place for economic prosperity for our entire region.” The NWSA will accept trucks equipped with a certified equivalent emission control system retrofit, verified by CARB as a Level 3 device that reduces particulate matter emissions by at

❙ Kalmar hybrids head

for Argentina Kalmar is to supply a total of four rubber-tyred gantry cranes with hybrid drivelines to Exolgan’s container terminal in Buenos Aires, Argentina, with delivery planned for late 2019. The cranes will be 6+1 rows wide and 1-over-5 high, with a lifting capacity of 40 tons under the spreader and will be fitted with the Kalmar SmartRail automated gantry steering solution. Exolgan’s terminal in Buenos Aires handles general cargo and containers, with approximately one-third of the country’s total foreign trade container volume passing through its gates. Kalmar said that the hybrid RTG combines lithium-ion battery technology with a fuelefficient diesel power unit. A spare parts package was also included in the order.

JANUARY/FEBRUARY 2019 | 39

SECURITY: PROTECTION

THROWING MONEY AT SECURITY CHALLENGES

Credit: PureTech Systems

Ports are prepared to overspend on surveillance to ensure they have covered every eventuality, finds Martin Rushmere

One security solution does not, it seems, fit all. Ports today are under pressure to go from ‘almost secure and safe’ to ‘oversecure and safe’ to counter public and community sentiment that no longer tolerates the “we thought of everything imaginable” defence from port authorities.

In many countries, safety and security have morphed into each other. So much so that some ports are stretching budgets too far and loading up with debt to satisfy both needs.

However, in some cases the main concern is clear. Africa’s Gulf of Guinea is an obvious example, with maritime authorities continually guarding against terrorism and piracy. Systems such as HGH’s Spynel infrared cameras have been installed with the main aim of spotting suspicious activity and boats; safety in berthing, terminal and container yard operations is a secondary consideration.

The trend internationally is of traditional optical cameras being used in combination with infrared, laser, thermal, radar and, in the last three years, drones.

wider range of uses. Germany’s LASE has installed 3D laser measurement systems for rail wagon unloaders at Ponta de Madeira Port in Sao Luis, Brazil for the Vale mining group.

Ports are also becoming more versatile in camera deployment, mixing fisheye, pan-tilt-zoom and other variants.

“We find that for wide short-range operations, such as monitoring cruise terminal areas, ports prefer wide angle (90 degree to 360 degree) cameras to allow them a wide view of busy operation areas,” says Mr Olson. “These areas typically don’t require long detection distances, so ports choose the trade-off of more viewing area versus detection distance, which reduces the number of cameras required.

“For perimeter surveillance,” he continues, “ports typically choose a pan-tilt-zoom (PTZ) sensor, which allows them greater detection distances, as well as the ability to zoom in on details and track potential intrusions. In many installations, these PTZ cameras can slew to an intrusion and automatically maintain video tracking without operator intervention.”

NEW MOVERS “Drones are an exciting development in video surveillance for seaports,” says Eric Olson, vice president of marketing at PureTech Systems. The Arizona-based company develops its PureActiv video analytics surveillance software. “The drones are enabled with artificial intelligence algorithms and traditional video tracking analytics. Seaports have a significant area to cover,” he says, “and the ability to automatically dispatch a drone to the location of an event, to not only provide video verification, but provide a means of deterrence through the drone’s presence, can allow ports to not only react faster to events, but also manage day to day operation costs.

“Drones can also be used to perform guard tours following a predetermined route, collecting video for long term forensic use, and reacting to real-time situations automatically, or in conjunction with remote security personnel.”

Electronics and software are also changing, leading to a

QUALITY IMPROVEMENTS Software advances and greater resolution of images are at the forefront of video analytics – allowing control room operators to get a much better idea of the likely intentions and dangers of both objects and people.

Port Miami implemented Qognify’s NiceVision video management solution, which was integrated with the port’s other systems and includes advanced analytics capabilities.

“The port has been able to integrate existing analogue cameras and recording systems,” says Qognify, “allowing them to leverage and maximise past investment and at the same time benefit from today’s advanced IP technology.

“The port can create specific surveillance zones monitored by assigned operators and centralise the overall management of their surveillance operations,” says Qognify. “Security operations are able to view multiple cameras, from any of their cameras from a single screen.”

40 | JANUARY/FEBRUARY 2019

8 PureTech Systems has launched a ‘dispatch drone-toalarm’ feature, which automatically dispatches a surveillance drone to an alarm location

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

SECURITY: PROTECTION

SECURITY MOVES While wearable equipment is rapidly coming into its own – and the trend will “certainly move into seaports,” according to Mr Olson – take-up will not happen as quickly as in other public safety markets, primarily due to lack of available budgets.

Artificial intelligence has been slow to come to port operations, but its value is still recognised. “AI is based on the video itself, not the camera,” explains Mr Olson, “so seaports can upgrade to this capability using existing cameras, which avoids costly installation updates.”

From a value proposition, AI applied to video is currently helping seaports in two primary areas: 1. Reduction of false alarms – Seaports are very busy places and span large geographic areas. The result is that very few video pixels are available to determine what is an intrusion, versus a nuisance alarm, versus a non-alarm. Deep learning methods applied to seaport environments help increase the success rate of these difficult detection scenarios.

2. Non-intrusion scenarios – Ports are always full of activity.

Although there are restricted areas that can be monitored using traditional surveillance technology, a port must also monitor and police areas that are open to the public. Ports must be able to quickly obtain usable surveillance data in the case of an event and use advanced technologies to help them prevent these events.

“Artificial intelligence algorithms are helping ports to more

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

8 Guaymas port went for a wireless security solution over fibre optic because of cost

effectively monitor for ‘soft events’, whereby the event does not entail an intrusion but rather a set of suspicious actions that may indicate threat, vandalism or other form of security breach for which the port requires notification so it can quickly react,” says Mr Olson.

ROOM TO IMPROVE There is still room for further improvement, not least of which is closing the gaps in the ability to monitor very large areas economically in both day and night conditions. For example, thermal cameras might work very well for night time detection at distance, but they do not allow for detailed identification.

“While CCTV cameras do a good job at this, they require a large amount of illumination to do so during night time surveillance,” says Mr Olson. Radars can cover large areas, but do not provide a visual confirmation. “The key is combining these solutions in an economical and intelligent manner to provide ports with this wide range of coverage.”

Meanwhile, the recent ability to combine geospatial alarm and tracking with video-equipped drones is moving security in ports forward. This allows ports to perform guard tours and react to events using automatically deployed and controlled drones. This technology not only allows ports to react faster to events, but also to manage day-to-day operational costs.

As a parting comment, Mr Olson reminds ports that maintenance costs have to be factored into surveillance systems – for software updates, hardware refresh efforts and general system upkeep. “However,” he points out, “these same systems bring more automation and intelligence; this gives the port the option to cover certain security aspects with a capital expense rather than maintaining or increasing security payroll budgets.”

8 PureTech’s wide area surveillance system is in operation at the Port of Tacoma

Credit: PureTech

EXPENDITURE CONCERNS That said, costs of installation and maintenance are a worry for smaller ports. Fibre optics are a tempting option compared with cable and wireless connections, but each has its limitations.

Says Mr Olson: “Due to the vast physical area ports need to protect, the use of wireless makes a lot of sense, as it reduces the need for expensive trenching and installation costs.

However, this same need to monitor a large area also means ports need as much resolution as possible from their video sources to provide proper levels of detail around events and the ability to extend the detection range of the camera.

“In these cases,” he continues, “wireless installations typically cannot support these desired levels of resolutions and frame rates. So, in practice, we still see most installations going with fibre and cable, using wireless for select areas where video surveillance is needed, but installation costs are problematic.”

A new closed-circuit camera (CCTV) system was installed at the port of Guaymas, in north western Mexico, to minimise the risk of theft and drug trafficking. According to the supplier, InfiNet Wireless, Guaymas port management considered a fibre optic solution, but thought this was too expensive, so selected a more cost-effective wireless solution that could reliably operate in adverse weather conditions.

InfiNet said the old wired system “was inadequate for the port environment as it was severely affected by factors such as hurricanes and corrosion”. The port said it did not want another cabled system because the standard UTP cabling reduced the viewing range down to just 100 metres for security officials.

Credit: Infinet

Access control systems have also been integrated: in the event of an alarm stemming from any access point, NiceVision automatically directs the nearest camera to the alarm and begins following the event.

“Today’s seaports are predominantly IP-based security systems,” says Mr Olson. “In the US, the Homeland Security Grant and Seaport Security Grant Programs did a great job at helping seaports with older technologies upgrade those systems. Most existing IP surveillance systems at seaports are H.264, with new installations or upgrades moving to H.265 encoding.”

JANUARY/FEBRUARY 2019 | 41

ENVIRONMENT: CIRCULAR ECONOMY

HELPING TO EXTRACT VALUE FROM GARBAGE

Credit: Port of Tilbury

Ports can help in the drive to turn waste into wealth, reports Felicity Landon

One person’s junk is another person’s treasure, as the saying goes – and in this, ports are increasingly playing centre stage.

From baled household waste being consolidated and shipped out to fuel power stations, to the contents of a region’s bottle banks being consolidated, sorted and loaded for onward transport to glass manufacturing facilities, there is no shortage of examples of ‘circular economy’ projects.

In October last year, a new European project was launched, aimed at facilitating the introduction of circular economy initiatives at European Union ports. Co-ordinated by Fundación Valenciaport and funded by the European Institute of Innovation and Technology, the LOOP-Ports project aims to create a circular economy network of ports which will provide an ‘innovation ecosystem’ around the port activity and encourage such projects in ports. The network will focus on high-emitting materials – mainly metals, plastics, cements and biomaterials.

“In December 2015 the EC launched the Circular Economy Action Plan to facilitate and promote the transition to a more circular economy (CE). Ports are a crucial sector to implement this action plan,” says Jorge Miguel Lara Lopez at Fundación Valenciaport. “As different CE initiatives related to the port sector are being developed in an isolated way, there is a need to actively involve the port sector in this new model of production and consumption.”

The main objective is for the value of products, materials and resources to be maintained in the economy for as long as possible, and to minimise the generation of waste, he says.

WIDE PICTURE The LOOP project is looking to understand the port sector’s specific features and innovation needs; contribute to the

42 | JANUARY/FEBRUARY 2019

8 Tilbury is one of the UK's top waste handlers

development of new products, processes and services; identify and encourage the replication of successful projects and good practices; identify specific synergies and complementarities among different port sector actors, value chains and markets; identify obstacles and make recommendations; and improve skills and knowledge.

That’s a hefty shopping list for what might seem, on the surface, a simple matter. But putting in place a constant, predictable, integrated CE process is often a highly complex challenge.

A number of Northern European ports are, at an individual level, carrying out some CE activities due to two main factors, says Mr Lara. “First, there is the urgent need they have to respond to a problem at their facilities or their customers’ facilities (pull); second, there are the national strategies related to CE that encourage initiatives in this area (push).”

As he points out, the ports of Rotterdam, Antwerp, Zeeland, Ghent and Amsterdam are among those taking this vision into account in their sustainability or strategy reports. Rotterdam has its renewable energy cluster, Antwerp has its intelligent treatment of waste and recycling, Zeeland has its bio-park, Ghent has its bio-refinery and bio-park, and Amsterdam is focused on recycling.

“One of the main problems is that CE activities are very generic and are sometimes not focused on generating less waste or reusing it but rather on preventive policies of operational savings through good practices or as a result of specific business models – recycling, repair, maintenance, decommissioning, refurbishment, second-hand, rental services, asset sharing, etc,” says Mr Lara.

He says the identification of CE best practices in port clusters

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

ENVIRONMENT: CIRCULAR ECONOMY

LOOKING INWARD LOOP isn’t focusing on waste generated by ships calling (covered by Marpol), but more on the waste generated by the activity of and within the port itself.

In fact, says Mr Lara, one of the most common examples of CE in ports is when there is an expansion or development; obsolete buildings are demolished or spaces reconditioned to build new terminals. “In such cases, earthworks and debris or materials are generated, which are often reused to fill new quays. This is analogous to the use of seabed sediments when dredging in ports.”

The Port of Tilbury is the UK’s largest waste export and recyclables handling port, with the portfolio including glass, wood, metal and general waste.

Two years ago URM Glass opened a multi-million pound high-tech glass sorting plant in the port. Glass is collected at materials recycling centres across London and the South East – sources include bottle banks, windscreen and industrial glasses, and pre/post process glass – and delivered to the Tilbury facility for sorting into colours and crushing.

Some of the crushed glass is shipped to Portugal, but most is loaded on to trains heading for one of the largest glass manufacturing facilities in Europe, in Cheshire. Forth Ports built a bulk rail terminal specifically for this project and others, and it is now expanding the facility after securing new volumes.

Recent investment has included a mobile crane, supporting equipment, a bespoke storage area and system upgrades. The terminal has a direct connection to the national rail network, enables sideloading rates of 300 tonnes per hour and also handles aggregates for FM Conway and green glass for OI Glass.

Biffa is the port’s third recyclable glass customer; glass is sorted and cleaned before being delivered to Tilbury for export.

Tilbury Green Power, opened in 2017, uses about 270,000 tonnes a year of waste wood sourced from the region to produce up to 319,000 megawatts of renewable electricity a year – enough to meet the demand of about 97,000 homes.

Hadfields ships waste wood through the port, for use in power stations and cement kilns across Europe, and the port is

Credit: Valenciaport

with a large number of companies is very difficult, not least because the collection of information might require contacting thousands of companies and going deeper into their operations.

“Most of the time, these practices come from the corporate policies of the companies because of the transnational characteristic of their operations, and not so much from the port infrastructure managers.”

traditionally also strong in RDF (refuse derived fuel) shipments to Europe.

OUTSIDE INFLUENCE However, “the circular economy works very well but it is dependent on government decisions”, points out Tilbury’s commercial and marketing manager, Alison Hall. “We have seen peaks and troughs, particularly when things like landfill taxes change. Also, the inconsistency from one borough to another regarding recycling and waste is massive. People don’t always appreciate that the success of the circular economy is down to government policy and driving it through to the councils and waste companies.”

Tilbury also plays an important part in Cory’s waste-toenergy plant upriver at Belvedere, in central London. The incinerator bottom ash (IBA) generated at the plant is loaded into containers and moved by barge to Cory’s processing facility at the Port of Tilbury.

As well as ash and slag, the IBA contains glass, brick, rubble, sand, grit, metal, stone, concrete, ceramics and fused clinker. It is all moved by conveyors through a series of screens, magnets and eddy current separators to remove the metal and grade the remaining materials. Metals are sent on for further recycling; the aggregate products are used in road building and construction projects.

8 Valenciaport’s new waste transfer centre sorts all waste from port-based companies

Valencia loops into circular economy Valenciaport is the only port member of the LOOP project – other members include the European knowledge and innovation community Climate-KIC and a number of universities, among others. The port authority has implemented a policy of waste reduction within the ports of Valencia, Sagunto and Gandia by building a waste transfer centre to which all port-based companies can send their waste to be segregated for better management. By using this facility, the share of valued waste has increased nearly ten per cent in the past three years, says Valenciaport.

“Only authorised companies can operate in the port, picking up the waste from the terminals and the port authority facilities,” says Jorge Miguel Lara Lopez from Fundación Valenciaport. “There is a specific Customs procedure to take this waste out of the port area. With this solution, the port authority has more control over the movement of this type of waste and facilitates recycling of these materials.

Moreover, there are annual statistics about the type of materials collected, the companies operating in these areas and the quantities in tonnes. This provides a real

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

picture of the needs regarding waste management in the future.”

Among other projects at the port of Valencia is a plant for the valorisation of MARPOL Annex I waste into fuel for further use. “Considering that the collected MARPOL I waste has risen nearly 30% in the past six years, there is room for valorisation of this waste category,” says Mr Lara. “MARPOL has a different waste management circuit to the waste produced within the port. Other initiatives are in process within the port authority offices, such as the substitution of plastic with recyclable items – this initiative is still in process.”

JANUARY/FEBRUARY 2019 | 43

BULK HANDLING: CYBER

CREEPING UP ON THE UNWARY AND UNPROTECTED

HINDERING BUSINESS FLOWS Business interruption is singled out as a key cyber risk by Michael Yarwood, senior loss prevention executive at TT Club.

As well as this, there are risks associated with denial of service malware – “perpetrators restricting access to your systems in lieu of a ransom payment”, he says. This is where, for example, automated operations which rely on operational technology (OT) could be extremely exposed.

An instant response to a damaging cyber breach should be to report it to the appropriate authorities. Yet some businesses remain concerned that the disclosure of cyberattacks may put people off using their services. They believe that if word gets out that cyber threats or attacks have affected business, their reputation could be damaged along with future business prospects. However, non-disclosure could cause repeat attacks, resulting in greater harm.

With that in mind, countries such as Canada require reports of security breaches by law. Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA) requires private sector organisations and 8 ABTO chief executive Ian Adams says the risks to bulk terminals are just as great as for any other business

44 | JANUARY/FEBRUARY 2019

8 Barcelona has suffered from a cyberattack

companies to report data security breaches to a Privacy Commissioner and inform customers if there is any risk stemming from the breach.

Mandatory reporting of significant IT disruptions apply to the 170 companies which are in the Port of Rotterdam and its industrial areas. From June 2018, any major incidents have to be reported to the Port Cyber Hotline. These include online issues that can greatly affect vessel arrival and departure, and security of the port and freight transhipment.

GLOBAL IMBALANCES On a general level, a major challenge is to address current mindsets in locations that are not as technologically advanced.

Last year’s Africa Cyber Security Conference addressed the threats posed by cyber criminals, noting that geography isn’t an issue when it comes to online crime. One of the speakers, Auguste Diop, managing director of Talentys, acknowledged that “digital security is in its infancy” in Africa (although Kenya and South Africa are more sophisticated in this department).

Boukary Ouedraogo, managing director of Atos Afrique de l’Ouest, said that the challenge is to change mindsets and to bring the culture of security to business, while Mr Diop said that even though Africa wasn’t as advanced in this field, it could still

8 There are risks associated with denial of service malware in which perpetrators restrict access to port systems in lieu of a ransom payment

Photo c/o TT Club

Ports have found that there’s a price to pay for modern technological marvels: cyberattacks pose a great threat to ports. The last 12 months have seen cyberattacks aimed at the Port of San Diego, where a cyber security threat disrupted the port's information technology systems; the Port of Barcelona, where an attack affected some of the port’s servers and systems; and a Cosco Shipping-affiliated terminal at the Port of Long Beach, which suffered a ransomware attack.

Such attacks can have a serious effect on all terminals in a port, not just on the more public facing container terminals.

Ahead of last year’s Association of Bulk Terminal Operators’ annual conference, Ian Adams, chief executive, said that both physical and cyber security remain a particular weak spot for the ship-to-shore interface. “Ports and terminals are not only at risk from breaches in their own security but also their customers’. If hackers attack terminals it can result not only in the loss of sensitive information, but also loss of power, loss of system availability, port congestion and reputational damage.

Terminal operators do need to have a robust business continuity plan in place.”

Talking to Port Strategy, Mr Adams says that the risks to bulk terminals are the same as for any other business: “There could be attacks from activists wanting to impact the reputation of the terminal; criminals seeking to gain financially; or opportunists who hack for the fun of it and then find that they can gain financially. There is also the threat of terrorist- or statesponsored cyberattacks with the intention to gain knowledge or cause disruption to the economy.”

Credit: Leslie B Jones, Flickr, CC BY-ND 2.0

John Bensalhia finds out why bulk terminals are just as vulnerable to attack as container hubs

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

12 JUNE Southampton United Kingdom 13ȶȉȦȟ Grand Harbour Hotel TO

Southampton 201ȟ

COASTLINK Conference

BOOK NOW AND SAVE 15%

*Use code ‘early’

The world leading conference on the future for short sea shipping

This years topics include: · The changing European logistics landscape – Adapting to the changing economic demands for transportation · How to manage your transport procurement and service – The best cost and delivery solution with environmental consideration · One belt, one road – the real partnership with Europe? – How ĘĜĹåŸå ÚåƴåĬŅŞĵåĹƋŸ ±ĹÚ ĜĹƴåŸƋĵåĹƋŸ ±ųå ĜĹā ƚåĹÏĜĹč European short sea shipping

Delegate place includes: • One and a half day conference attendance • Full documentation in electronic format • Lunch and refreshments throughout • Place at the Networking Drinks Reception • Place at the Conference Dinner

Meet and network with over 150 attendees representing logistic companies, terminal operators and shipping lines.

For more information on attending, sponsoring or speaking contact the events team: visit: coastlink.co.uk contact: +44 1329 825335 or email: conferences@coastlink.co.uk #Coastlink

Organised by:

Supported by:

Media partner:

BULK HANDLING: CYBER

learn from mistakes made in other locations. “As a latecomer to digital technology, Africa can turn its handicap into an advantage by avoiding the errors made in cyber security by Europe and America.”

In order to prevent possible cyberattacks causing significant damage, bulk terminals can take a number of precautions. “Upto-date security software and sound procedures to prevent access to the systems will help ports to combat this problem,” says Mr Adams.

“Bulk terminals should ensure that all software – especially legacy systems – are kept up to date and install any available patches,” adds Mr Yarwood.

“They should implement layers of defence, starting with the outermost layer of physical security, followed by managementlevel procedures and policies, as well as firewalls and architecture.”

Other precautions include implementing specifically targeted policies, account management, security updates and antivirus solutions, as well as employing network hardening measures “to ensure that patch management is adequate and proactively reviewed”.

“A sound removable device policy should also be employed, with provisions to ensure all USBs are encrypted and tested for viruses prior to being used with other devices,” says Mr Yarwood.

“And finally, another action is the vetting of third-party providers to ensure that their cyber security procedures meet your expectations.”

FURTHER SUPPORT Outside projects are also available to help tackle the risks posed by cyberattacks. Valenciaport Foundation’s Sauron Project, for example, uses modern visualisation techniques such as cyber 3D models and immersive interfaces as a means of detecting and dealing with outside threats. Sauron can also evaluate possible outcomes of a cyber threat, thanks to its Hybrid Situation Awareness application. In the event of a serious risk to the port, this application can notify the appropriate security teams, who can then tackle the problem more quickly, preventing severe disruption.

Founded by technology group Wärtsilä and cyber security company Templar Executives, the International Maritime Cyber Centre of Excellence boasts a cyber academy and MCERT (Maritime Cyber Emergency Response Team). The team is available 24 hours a day to tackle emergencies, providing realtime help for members with cyber-related attacks, threats and incidents. The services of MCERT are available to ports around the globe, who can also call the team for advice and support on

cyber security. Meanwhile, the Cyber Academy provides a good source of education about cyber-related subjects at all levels, including security coaching for senior management and cyber awareness for all organisational levels in the maritime industry.

But the challenges surrounding bulk terminals’ cyber security present opportunities for ports to prepare for such risks. “The main opportunity for those who have not yet fallen victim to such an attack is to risk assess and prepare,” says Mr Yarwood.

“Comprehensive threat assessments should be conducted to determine the threat landscape and to understand the potential attack surface faced by ports and terminals.”

Cyber resilience can also be built in other ways. Mr Yarwood says that personnel awareness and training can be improved through frequent briefings. Regular reviews of bring your own device and password policies should be introduced as a means of building up resistance to potential cyber threats. As well as this, bulk terminals should also envisage worst case scenarios.

“Consider business continuity,” explains Mr Yarwood. “How would the day-to-day operation of your business be affected if you lost all IT and OT systems for 48 hours?”

MCERT director, Chris Gibbons, adds: “As the maritime world becomes more complex, interconnected and reliant on technology, we are faced with an enormous challenge: either we work together to improve our ability to defend ourselves by confronting and defeating the malicious acts so we are not vulnerable targets or collateral damage, or we fragment and fail.”

8 Valencia’s Sauron project uses cyber 3D models and immersive interfaces to detect and deal with outside cyber threats

8 TT Club’s Michael Yarwood advises bulk ports to ensure that all software – especially legacy systems – are kept up to date

Cyberattack knowledge is power As a result of potential cyber risks, bulk terminals face a number of challenges.

TT Club’s Michael Yarwood cites a number of examples, including information and operational technology infrastructures, as well as IT/OT interaction and interoperability with other businesses.

A key challenge is to get the terminal personnel fully aware and trained – as Mr Yarwood puts it: “Vulnerability to attack will always lie in human error.”

A range of training courses in cyber security are available. Cyberkeel’s support for

46 | JANUARY/FEBRUARY 2019

the maritime industry is designed to improve cyber security and reduce outside risks.

One of its services is training, which is specifically pitched at various levels in accordance with each client’s requirements, whether single or multi-company. A system administrator technical training course, for example, includes sections on Windows Internals and Attacks (including detailed views of vulnerabilities and exploits in modern software); Privilege Escalation and Lateral Movement; Endpoint Defences (including antivirus strengths and weaknesses, and

detailed anti-hacking technologies); and Persistence and Network Defences.

Lloyd’s Maritime Academy also offers an online course that grants a certificate in maritime cybersecurity. Port managers, harbour masters and ship managers can take a 12-week course that offers a greater understanding of the cyber risks posed. It looks at monitoring of cyber incident investigations, emergency response mechanisms, how to tackle extant threats and reducing the impact of potential attacks.

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

PRODUCTS & SERVICES: DIRECTORY

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

G-SERIES

Dellner Dampers is an innovative Swedish company that supplies solutions to mitigate vibrations and absorb kinetic energy. Standard and customised buffers and dampers for port side applications such as cranes, spreaders and more. All designed and produced in Sweden.

Tel: : +46-(0)157-45 43 40 Fax: +39 049 8848006 Email: info@dellnerdampers.se Web: dellnerdampers.se

Gantrex Founded in 1971, Gantrex is the global market leader in production, distribution, installation and maintenance of high quality crane rail solutions. Gantrex offers its products and services across the world and operates four production sites in Belgium, Spain, Canada and China. Gantrex products are used in many different applications including ports, shipyards and heavy industries.

DEME NV DEME has almost 175 years of experience in dredging and land reclamation activities, hydraulic engineering and executed major works of marine engineering infrastructure.

Scheldedijk 30 / Haven 1025 2070 Zwijndrecht â&#x20AC;&#x201C; Belgium T: +32 (0)3 250 52 11 Info.deme@deme-group.com www.deme-group.com

E LECTRIFICATION SOLUTIONS

Together we are Stronger and Better.

Together, Jacobs and CH2M bring unequaled ports and maritime technical excellence to solve your greatest challenges and capitalize on your greatest opportunities.

Together, we are now the worldâ&#x20AC;&#x2122;s largest port consultancy 22 Cortlandt Street New York, NY 10007 USA Tel: +212-608-3990 Patrick.King@ch2m.com www.ch2m.com/ports

Rohde Nielsen A/S 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

D REDGING EQUIPMENT

C ONSULTING ENGINEERS

Gemini House Cambridgeshire Business Park, 1 Bartholomewâ&#x20AC;&#x2122;s Walk, Ely Cambridgeshire CB7 4EA England, United Kingdom (UK) Tel: +44 1353 665001 Fax: +44 1353 666734 sales@samson-mh.com www.samson-mh.com

*)%# )! %*&"!$ (,() # %' *& )% !) ( ) )' $(#!((!%$ ! *(. # &! ' )'

-"$ '# $, "

!$ % ! *( * ! *( * '%+ '

FĂĽrtoftvej 22 7700 Thisted, Denmark Tel: 0045 72 42 24 00 holding@cimbria.com www.cimbria.com

SAMSON Materials Handling Ltd specialises in the design and manufacture of mobile bulk materials handling equipment for surface installation across multiple industrial segments. Designed for rapid onsite set-up and continuous high performance SAMSON equipment provides an excellent return on investment.

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

C RANE RAIL SOLUTIONS

Cimbria design, develop, manufacture and install custom-built solutions, from processing lines to large turnkey projects. We possess in-depth specialist knowledge in every field of crops and products with project engineering and process control as particularly demanding fields of competence.

C OMPONENTS

A/S Cimbria

DREDGING

Email: info@buttimer.ie Tel: +353 52 744 1377 Website: www.buttimer.com

LASE Industrielle Lasertechnik GmbH

C RANE COMPONENTS

Buttimer Engineering are a diversified mechanical engineering company with 40 yearsâ&#x20AC;&#x2122; experience, specialising in bulk materials handling systems and high-quality steel fabrication.

In 2014 Buttimer launched their DOCKSOLID brand, a range of market leading Standard and Environmental ship unloading hoppers.

â&#x20AC;˘ Portable pneumatic conveyors or grain pumps; â&#x20AC;˘ Pneumatic continuous barge and ship unloaders; â&#x20AC;˘ Mechanical continuous ship unloaders; â&#x20AC;˘ Mechanical loaders; Complete turnkey projects for port terminals

VIGAN Engineering s.a.

Rue de lâ&#x20AC;&#x2122;Industrie, 16 1400 Nivelles (Belgium) TĂŠl.: +32 67 89 50 41 www.vigan.com info@vigan.com

C ARGO HANDLING SYSTEMS

Buttimer Engineering

VIGAN manufactures dry agribulk materials handling systems:

C ONTAINER TERMINALS

BEDESCHI S.p.A. established in 1908, offers a fully integrated line of products and services widely used in many fields such as bricks, tiles and cement manufacturing, bulk material handling and transport, mining and marine logistics.

Via Praimbole 38, 35010 Limena (PD) â&#x20AC;&#x201C; Italy Tel: : +39 049 7663100 Fax: +39 049 8848006 Email: sales@bedeschi.com Web: www.bedeschi.com

B ULK HANDLING

B ULK HANDLING

Bedeschi S.p.A

Stäubli Electrical Connectors AG As one of the leading manufacturers of quick connector systems, Stäubli covers connection needs for all types of fluids, gases and electrical power. +41 61 306 55 55 ec-ch@staubli.com www.staubli.com/en-ch/ connectors/

Email: info@gantrex.com Tel: +32 67 88 80 30 www.gantrex.com

VAHLE PORT TECHNOLOGY

To advertise in the

Port Strategy Directory contact Tim Hills on

+44 1329 825335 www.portstrategy.com

YOUR VISION â&#x20AC;&#x201C; OUR SOLUTION As a specialist for energy and data transmission VAHLE is active in the fields of ports, intralogistics, automotive, people mover and cranes. VAHLE offers innovative customized solutions based on wide experience.

Email: info(at)vahle.de Web: www.vahle.com

JANUARY/FEBRUARY 2019 | 47

PRODUCTS & SERVICES: DIRECTORY

Verstegen is worlds leading manufacturer of rope operated mechanical grabs for the dry bulk industry. Stevedoring companies and ports are using our grabs for handling all kinds of bulk materials.

Marconibaan 20 Nieuwegein Netherlands 3439 MS Tel: +31-30-6062222 Fax: +31-30-6060657 info@verstegen.net www.verstegen.net

Box 720, 931 27 Skellefteå, Sweden Tel: +46 910 870 00 info@alimakhek.com www.alimakhek.com

Port Strategy Directory

H ANDLING EQUIPMENT

To advertise in the

contact Tim Hills on

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.

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

+44 1329 825335 www.portstrategy.com

CAMCO Technologies NV Visual- and Micro Location- assisted process automation solutions for container, ro-ro and rail terminals worldwide. Accurate crane, gate & rail OCR systems and Gate Operating System software helping terminals accelerate terminal and gate activity.

Technologielaan 13 Leuven, Belgium +32-16-38-9272 +32-16-38 9274 info@camco.be www.camco.be

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.

Besides the production of rope operated mechanical grabs, motor grabs and hydraulic grabs we supply an excellent after sales service.

Talweg 15-17, Helmstadt-Bargen 74921, Germany Tel: +49 (0)7263 - 91 29 0 Fax: +49 (0)7263 - 91 29 12 info@mrs-greifer.de www.mrs-greifer.de

Schwartauer Str. 99 D-23611 Sereetz • Germany Tel:+49 451 398 850 Fax: +49 451 392 374 soj@orts-gmbh.de www.orts-grabs.de

48 | JANUARY/FEBRUARY 2019

The TT Club is the international transport and logistics industry’s leading provider of insurance and related risk management services.

TT Club specialises in the insurance of liabilities and equipment for multi-modal operators.

90 Fenchurch St London • EC3M 4ST Tel: +44 207 204 2635 london@ttclub.com www.ttclub.com

VISY Oy

www.certus port automation.com

Tel: +358 3 211 0403 Email: sales@visy.fi Web: www.visy.fi/

+31 78 6815196 The Netherlands

Saab Solutions Saab offers a comprehensive suite of innovative products to make your maritime operations safer, more efficient and more secure, including solutions for Port Management, Pilot Dispatch and Vessel Traffic Services.

E: mtminfo@saabgroup.com W: www.saab.com/maritime

Europe’s largest commercial marine and workboat exhibition and conference. Over 610 exhibitors, more than 7,700 dedicated marine professionals from 70 countries around the world attend

11 2019 JUNE 13 TO

2E]ǼS[IV 5EVO SYXLEQTXSR 90

Book your place online or contact the events team: +44 1329 825335 info@seawork.com www.seawork.com

ShibataFenderTeam Group ShibataFenderTeam is one of the leading fender manufacturers with 50+ years of group experience and an extensive global network.

As a specialist for customized fender solutions, they focus on vertical integration with in-house manufacturing and full scale testing, offering high quality products at competitive prices.

SFT offers the full range of marine fender products. info@shibata-fender.team www.shibata-fender.team

P OWER TRANSMISSION

Over 40 years experience constructing and manufacturing a wide range of grabs, including electro-hydraulic grabs (with the necessary crane equipment) radio controlled diesel hydraulic grabs, 4, 2 and single rope grabs all suitable for bulk cargo.

I NSURANCE

Orts GMBH Maschinenfabrik

Liebherrstraße 1, 18147 Rostock Rostock, Germany +49 381 6006 5020 maritime.cranes@liebherr.com www.liebherr.com

1-Stop is a globally recognised leader in innovating and delivering integrated solutions to increase productivity for the Port Community. We are committed to working collaboratively with all members of the community to deliver efficiency gains for everyone.

VISY takes pride in solving operational problems, specialising in gate automation and access control solutions in ports and terminals. Their solutions streamline processes resulting in saving money and increasing productivity.

M ARINE FENDERS

G RABS

Liebherr provides advanced maritime cargo handling solutions with a focus on quality, innovation and performance. With more than 50 years’ experience in vessel handling and container stacking, Liebherr supplies premium port equipment for highly efficient port operations across the globe.

1-Stop Connections Pty Ltd

PO Box 204, Rockdale, NSW, 2216 Australia Tel : +61 2 9588 8900 (Intl) Email: info@1-stop.biz Web: www.1-stop.biz

CERTUS provides Automatic Container Recognition systems in ports and terminals all across the globe. Our systems have consistently demonstrated high reliability and overall high OCR accuracy, streamlining customer operations.

Check out our Mobile OCR!

Liebherr-MCCtec Rostock GmbH

MRS Greifer GmbH

I T PORT AUTOMATION

Verstegen Grijpers BV

I T PORT AUTOMATION

G RABS

E LEVATORS

Alimak Hek AB Alimak Hek, the leading manufacturer of rack and pinion elevators, have been successfully servicing ports since the early 1970’s with close to 3,000 elevators installed, providing easy access for crane drivers, which enhances productivity and profit. Today, the company’s crane elevators are installed in almost 100 countries around the world.

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

We Keep Your Vital Business Moving!

Rheinstrasse 27 + 33 Weil am Rhein 79576 Germany Tel: +49 (0) 7621 662 0 Fax: +49 (0) 7621 662 144 info.de@conductix.com www.conductix.com

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

PRODUCTS & SERVICES: DIRECTORY

TVH is a world-wide supplier with customers in more than 170 different countries. As a ‘One-Stop Shop’ the company offers a full service in spare parts and accessories for heavy container handling equipment with a guaranteed fast delivery at a competitive price.

Brabantstraat 15 BE-8790 Waregem Tel: +32 56 43 42 11 Fax: +32 56 43 44 88 parts@tvh.com www.tvh.com

Bromma is the industry’s most experienced spreader manufacturer, known worldwide for crane spreaders of exceptional reliability.

Today you find Bromma spreaders operating in 97 out of the top 100 ports worldwide.

Malaxgatan 7 , P.O. Box 1133 SE-164 22 Kista, Sweden Tel: +46 8 620 09 00 Fax: +46 8 739 37 86 sales@bromma.com spareparts@bromma.com

Worldwide: +44 131 553 1380 sales@codaoctopus.com US +1 863 937 8985 Salesamericas@codaoctopus.com www.codaoctopus.com

T ERMINAL OPERATING SYSTEMS

S PREADERS

Bromma Conquip

Coda Octopus is a global leader and specialist in underwater technologies.

Our patented flagship product, the Echoscope®, is the world’s only real-time 3D volumetric imaging sonar, giving operators the ability to visualize and map the subsea scene in real-time 3D.

5 Sir Gil Simpson Drive Christchurch 8053 New Zealand PO Box 20152 E: info@jadelogistics.com W: www.jadelogistics.com

Navis understands that as ships get larger and operational processes become more complex - efficiency, collaboration and productivity are essential. As a trusted technology partner, Navis offers the tools and personnel necessary to meet the requirements of a new, and ever-evolving, global supply chain.

World Headquarters 55 Harrison Street Suite 600 Oakland CA 94607 United States Tel: +1 510 267 5000 Fax:+1 510 267 5100 Web: www.navis.com

T RACTORS

Coda Octopus

Master Terminal TOS from Jade Logistics solves the complex problem of managing a variety of mixed cargo within one system, providing the agility you need to manage your port. Designed to cater for all cargo types, it is the TOS of choice for mixed cargo terminals.

T ERMINAL OPERATING SUPPORT

S UBSEA

S PARE PARTS

TVH

T ERMINAL OPERATING SYSTEMS

S PREADERS

S IDELIFTER/SIDE LOADERS

Hammar Maskin AB Hammar Maskin AB is developing, manufacturing and marketing Sideloaders, also known as Sidelifters, Swinglifters or Self loading trailers, under the brand name HAMMAR™.

Buagärde 36, Olsfors 517 95 Sweden Tel: +46-33 29 00 00 Fax: +46-33 29 00 01 info@hammar.eu www.hammar.eu

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 18,000 spreaders have been attached to lift trucks, reach stackers, straddle carriers and cranes.

Stalgatan 6 , PO Box 174 SE 343 22, Almhult, Sweden Tel: +46 47655800 Fax: +46 476 55899 sales@elme.com www.elme.com

Providing complete solutions for your container cranes Refurbishments & Upgrades – Maintenance – Training – Inspections & Audits – Safety Lashing Cages – Spares & Service Support www.wcs-grp.com/ info@wcs-grp.com T: +971-4-8838980

MAFI Transport-Systeme Gmbh MAFI is one of the leading manufacturers of tractors for in-plant transportation in seaports, industry, logistics and distribution centres.MAFI diesel tractors are used all over the world for shunting containers and semi-trailers and for loading and unloading of roro-ships.

Hochhäuser Str 18 97941 Tauberbischofsheim, Germany Tel: +49 9341 8990 sales@mafi.de www.mafi.de

TSV 40 W ENG The Brain of Logistics 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.

DSP Data and System Planning SA Via Cantonale 38 6928 Manno, Switzerland Tel: +41 91 230 27 20 Fax: +41 91 230 27 31 info@dspservices.ch www.dspservices.ch

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.

Tel : +33 (0)3 28 65 81 91 contact@tgims.com www.tgims.com

Terberg Special Vehicles develops and manufactures customised tractors. Our terminal, RoRo, industrial and road/rail tractors operate in ports, distribution centres, shunting yards, industry and construction sites worldwide.

We believe efficient operations depend on high quality, easy maintenance and operator comfort.

Benschop – The Netherlands Tel. +31 348 45 92 11 terbergspecialvehicles.com

SUBSCRIBE NOW to receive a trial copy of GreenPort Magazine

Email subscriptions@greenport.com or call +44 1329 825 335 • Comprehensive online directory • Instant access to industry news • eNewsletter • Magazine subscription • Expert opinion

www.greenport.com

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

JANUARY/FEBRUARY 2019 | 49

Credit: 123rf

POSTSCRIPT

DOOR OPEN FOR CMA CGM IN DJIBOUTI?

The presence of China in Djibouti could be a further thorn in DP World’s side

Port Strategy hears that the world’s No.3 container line, CMA CGM, is interested in exploiting port and transport corridor opportunities in Djibouti, the primary gateway for Ethiopian cargo.

Specifically, CMA CGM is said to be looking to secure operator status at the extension of Doraleh Container Terminal (DCT), the facility from which DP World was unceremoniously expelled last year by the Djibouti Government despite a London tribunal ruling that allegations of mis-management and corruption made by the Government of Djibouti were not proven.

Djibouti's answer to this ruling was to nationalise DCT and expel DPW paying zero attention to the tribunal ruling and DPW’s protestations about the country breaking international law.

Subsequently DP World filed a lawsuit against state-owned China Merchants Port Holding. That aims to secure damages and declare that China Merchants unlawfully procured or induced Djibouti’s breaches of its agreement with DP World.

China Merchants entered the Djibouti market in 2013. China Merchants Port Holding acquired 23.5% shares of the Djibouti port authority Port De Djibouti SA (PDSA) for $185m and has invested in redeveloping the port area. It has also been involved in the development of multipurpose port facilities in Djibouti, incorporating substantial container handing capacity, and in mid-2018 highlighted its intention to expand its involvement in Djibouti with the redevelopment of the old port area of Djibouti. It was not long after this that DPW initiated its legal action against China Merchants.

DP WORLD REACTION This ‘recent’ history raises the interesting thought as to what DPW's reaction will be to the suggestion that CMA CGM is interested in an involvement in the extension to DCT? Such an involvement could be through its port investment vehicle Terminal Link in

50 | JANUARY/FEBRUARY 2019

8 Doraleh might end up in Chinese hands

which China Merchants holds a 49% equity stake, acquired in June 2013. CMA CGM also has another port investment arm, a wholly-owned one. But whatever vehicle may be used the prospect of DPW taking on CMA CGM has more implications to it than its legal dispute with China Merchants Port Holdings. CMA CGM, the shipping line, is a major user of DPW container terminals around the world and, given this, there is a strong logic associated with not going to war with one of your major customers. A step on from this reality there is also what can be termed the ‘China Inc’ factor.

CMA CGM operates in the Ocean Alliance, one of the new mega-alliances formed recently in the container sector. Other participants include the Chinese shipping lines COSCO and OOCL as well as the Taiwan-based line Evergreen. The Ocean Alliance has just announced what it has dubbed as its ‘Day 3 Product’ – its new service network entailing the use of around 330 vessels, 111 of which will be operated by CMA CGM, offering a total carrying capacity of around 3.8m teu over 38 services. Given the known close linkage between the Chinese state-owned shipping lines and China Merchants, coupled with CMA CGM’s close links with these Chinese interests it seems that the wise course of action for DPW is to avoid any conflict with CMA CGM. In a wider context remember that Dubai still has substantial investments in Djibouti outside the container business – in the oil port sector and others.

So while it might rankle with DPW, the door, in practical terms, may well be open for CMA CGM to pursue its interest in the DCT extension plus reportedly the management of the Addis Ababa-Djibouti corridor, recently the focus of new rail system construction by China. Or is there a ‘Chinese wall’ involved and down the track will we see further Chinese involvement?

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

Oslo2019

16OCT Port of ȶȉȦȟ Oslo 18

GREENPORT Cruise Congress

TO

&

Hosted by:

OSLO HAVN PORT OF OSLO

BOOK NOW AND SAVE 20%

*by using code “early”

The world’s leading conference on balancing environmental challenges with economic demands comes to Oslo - European Green Capital of 2019!

SAVE €379 on Cruise & Congress

*Full price €1895

Delegate place includes: •Choice of conference streams for Greenport Cruise on day 1 •Two day conference attendence at Greenport Congress •Full documentation in electronic format •Lunch and refreshments throughout •Place at the Welcome Reception •Place at the Gala Dinner •Place at the Port Tour

SAVE €139.00 on Cruise

*Full price €695

• One day conference attendance • Full documentation in electronic format • Lunch and refreshments • Place at Welcome Reception • Place at the Conference Dinner

Meet and network with over 200 attendees representing port authorities, terminal operators and shipping lines.

For more information on attending, sponsoring or speaking contact the events team visit: greenport.com/congress contact: +44 1329 825335 Organised by: or email: congress@greenportcom GREENPORT

#GPCongress

Media Partners:

BALANCING ENVIRONMENTAL CHALLENGES WITH ECONOMIC DEMANDS