Port Strategy July/August 2021

JULY/AUGUST 2021 VOL 1021 ISSUE 6

portstrategy.com

Diesel to electric | Vehicle Booking System Innovation | Gate automation advance

ARCTIC ASPIRATIONS ANALYSED BANANA CASE STUDY SOUTH EAST ASIA REVIEW SUSTAINABLE FINANCE

PORTSTRATEGY INSIGHT FOR PORT EXECUTIVES

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

VIEWPOINT MIKE MUNDY

Fundamental port sector change

The ports sector is operating under exceptional circumstances. These circumstances are driving fundamental change on a broad basis. There are many visible signs of this but there is also significant change in a ‘back office’ context

How many times has it been said? Will it hurt to say it again? OK then, lets just ‘put it out there’ – COVID-19 continues to test us all.

No surprise there eh, but the problems that have come, and continue to come, in its wake are surprising in terms of both their individual and collective scale and impact. The headliners are: vessel schedule disruption; port and terminal congestion, all-time high freight rates, container and chassis imbalances, lack of inland transport distribution capacity, truck driver shortages, port workforce shortages and so on.

And throw into this mix other increasingly prominent areas of challenge such as the pressure to adopt e-friendly systems and plant, to get to grips with digitalisation including automation, and in developed economies in particular to find new paths with labour arrangements, then for sure 2021, and in all probability 2022, will go down as exceptional years. Years of great challenge, especially when an already formidable situation is further complicated by remarkable one-off events such as the grounding of the Ever Given.

The public face of the response by the ports sector tends to rest on operational matters – the prioritisation of essential port activities, measures to adapt workforce arrangements to the new operating conditions, enhanced coordination with public authorities to establish collectively the basis for response measures and so on.

But behind these higher profile type of changes, are a raft of other changes which promise, in many respects, to have a longer lasting effect.

High up the list is a much stronger focus on risk management, signposted in mid-2020 by an iSpec Ports Industry Survey undertaken by Remy InfoSource, the lifecycle contract management specialist behind iSpec. This found that more than half of the port executive respondents (51 per cent) identified risk management as the key area they would like to improve on, up from 32 per cent in a 2018 iSpec Ports Industry Survey.

Managing the risk perception, by way of improved - clear and transparent – communication strategies is another noteworthy trend and is proving key to preserving reputation, avoiding tensions and undesired situations and, hence, ensuring business continuity.

Financial arrangements and investment is another area of change. The majority of port sector participants have undertaken some form of financial re-engineering as a result of COVID-19. In some cases, COVID-19 has had implications for the ability of ports to access capital and invest to meet their customers’ existing and future needs. Some investments have been deferred or even cancelled – in the hard-hit cruise sector for example but also in mainstream cargo areas.

Generally, project viability is coming under much more scrutiny – by public authorities, private operators and financial interests.

The increased emphasis on digitalisation, and key elements such as automation, can also, in part at least, be seen to the source of greater union unrest. Ironically, however, this unrest in the final analysis may prove to be a prime driver behind the wider adoption of automation for both front-line and back up functions.

Without doubt the landscape of the international ports sector is undergoing fundamental change.

For the latest news and analysis go to www.portstrategy.com/news101

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JULY/AUGUST 2021 | 3

CONTENTS JULY/AUGUST 2021 VOL 1021 ISSUE 6

portstrategy.com

Diesel to electric | Vehicle Booking System Innovation | Gate automation advance

NEWS 16 Valencia rail

Building capacity

16 “Crazy project” Canal work starts

17 Going live in Berbera

New port opens

ARCTIC ASPIRATIONS ANALYSED BANANA CASE STUDY SOUTH EAST ASIA REVIEW SUSTAINABLE FINANCE

On the cover Arctic shipping routes hold some advantages but in general for liner shipping the negatives outweigh the positives. Port opportunities remain, however, in the liquid and dry bulk sectors

17 Yantian congestion Reportedly easing

EU project funding

14 Elephant in room USA labour issues

&

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

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

20 Arctic analysis

Realistic prospects

22 South East Asia production

Ready, willing and able?

19 Smart Roerdam

Visibility venture

Piraeus2021

Cost analysis raises questions

27 Price of sustainability

Damage detection innovation

11 PSA/Roambee

GREENPORT Cruise Congress

19 Banana case study

19 ADDS launched

Vehicle solution for ABP

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

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FEATURE ARTICLES

24 South East Asia ports

10 INFORM appointed

is a proud support of Greenport and GreenPort Congress

JULY/AUGUST 2021

14 Generation 6

New Konecranes’ MHCs

15 Targeting improvements

Port Sudan initiative

15 Kalmar upgrades RTGs Five new models

REGULARS 12 The New Yorker

New contenders ready?

Favourable ‘green terms’

30 Decarbonisation in UK ports

Funding and cost issues

32 Reduce - produce procure Diesel to electric – the steps

35 Arica railroad readies

Arica – Bolivia link

38 Terminal VBS

Make an appointment

41 Gate automation Systems advancing

46 Postscript

Darwin deal under review

Home Depot “game changer”

12 The Analyst

Uneven relationship

13 The Economist Globalisation risks

13 The Strategist Livestock reforms mooted

17 The Environmentalist Follow the science

For the latest news and analysis go to www.portstrategy.com/news101

JULY/AUGUST 2021 | 5

PORT & TERMINAL NEWS Autoridad Portuaria de València is to spend €240 million in railway improvements at València and Sagunto. For València, a total of €125.5 million is being invested in projects including: a remodelling of the Príncipe Felipe quay track bed and a change to international gauge standards (€8.2 million); improving rail between the Poniente and Costa docks (€45.4 million), electrifying northern network tracks (€5 million), development of the Fuente de San Luis terminal (€15 million) and developing the network for northern terminal access (€40 million).

For the Port of Sagunto, investment of €97.6 million includes improving the inland rail network (€9 million), developing rail access to the port area (€20 million) and construction of new sidings for 750m-long trains (€20.6 million).

Rail is an integral part of cargo flows for the Port of València, with more than 4000 trains a year managed by 10 different President of Turkey, Tayyip Erdogan, has officially launched the US$15 billion Istanbul Canal project. First revealed over a decade ago by Erdogan, and dubbed as his “crazy project,” the new 45km waterway on the western edge of Istanbul is to be developed to ease congestion for vessels using the Bosporus.

In the official ceremony, Erdogan announced: “We view Kanal Istanbul as a project to save Istanbul’s future.” Critics of

BRIEFS “NZ Inc” Call for Ports

Clive Glover, President, New Zealand Shipping Federation is urging the Government to consider exerting a “NZ Inc” influence over the country’s ports to address concerns over infrastructure, congestion and pricing in the sector. “I believe the optimal outcome would be a set of charges or rates for domestic ships that are established centrally and apply across all ports in New Zealand, so that surety of cost could be managed ...” he says.

6 | JULY/AUGUST 2021

VALENCIA BUILDS RAIL CAPACITY

companies, at a rate of 80 convoys a week – as the graphic shows. This equals around 11 per cent of import/export containers

moving by rail per annum, almost three-times the national average for Spain, which is just four per cent at present.

8 Valencia’s use of rail for containers is already three times the average in Spain – but the port is investing to grow usage

TURKEY’S “CRAZY PROJECT” KICKS OFF the project fear it will damage the environment by destroying a marine ecosystem and endanger some of the city’s fresh water supply.

Nevertheless, construction workers officially kicked off the project by pouring cement into the foundations of a 1.6km bridge. Erdogan also stated that the canal project is expected to take six years to complete.

The official rationale for the project from the Turkish government is that it is becoming

increasingly difficult for tankers to transit the existing Bosporus waterway between the Black Sea and the Sea of Marmara, due to a combination of vessel congestion and the sizes of the ships moving.

Government statistics claim that around 43,000 ships utilise the existing waterway annually, which is much higher than the current safe capacity of 25,000 vessel sailings.

This is already causing waiting times to increase, and the position will become

considerably worse if the government’s projections of 78,000 ships transiting in 2050 are to be believed.

Local press reports have indicated that a high number of Istanbul’s 15 million population are opposed to the project, along with Istanbul Mayor Ekrem Imamoglu and the opposition CHP party, to which he belongs.

The Istanbul Canal project is dividing opinion in Turkey, but the government appears committed to the new waterway being developed.

Durres Deal

China Coal Stockpile

Tauranga Extension

Mariner Adriatic, a Hili Company subsidiary, has taken over the management and operation of the Durres Container Terminal, Albania. The company reports that it intends to implement an operational efficiency programme at the terminal which has in the past been criticised for poor performance.

The terminal operates with two mobile cranes on the quay and reach stackers for yard handling.

Annual capacity is said to be in the order of 180,000TEU.

Against a background of continuing strained relations with Australia, which has seen the country turn away from purchasing Australian coal, China’s National Development and Reform Commission (NDRC) has announced that it intends to build a coal stockpile of around 100 million tons over the remainder of this year. The NDRC reports the stockpile will be built from increased domestic production and imported coal.

An urgent resource consent is being sought by the Port of Tauranga, New Zealand to convert 220 metres of existing port land to the south of the existing container wharves into an extended berth. “The NZ$63 million project will enable more efficient use of existing port infrastructure without extensive reclamation. It will create jobs and income and help relieve future congestion in the Upper North Island supply chain,” states the port.

For the latest news and analysis go to www.portstrategy.com/news101

PORT & TERMINAL NEWS

NEW BERBERA PORT GOES LIVE DP World and Somaliland have inaugurated a new terminal at Berbera Port, plus confirmed plans for a phase two expansion as well as broken ground for an economic zone.

The new facility is offering a water depth of 17m alongside the berth, a quay length of 400m and three ship-to-shore (STS) gantry cranes, increasing the existing port capacity from 150,000TEU per annum to 500,000TEU per annum. The supporting container yard operates with eight rubber-tyred gantry (RTG) units.

DP World is committed to investing US$442 million in the development and expansion of Berbera Port. The operator has already confirmed that there will be a phase two expansion process, which incudes extending the quay from 400m to 1000m and the addition of seven STS gantry cranes. As a result, a total of 2 million TEU per annum is being targeted, although the The congestion at the Chinese port of Yantian is reported to be easing, as Port Strategy goes to press, but the extent of the problem, and the potential disruption, is becoming much clearer.

Sources in Asia have been reporting that around 600,000TEU has been impacted (at the start of the third week of June). To put this figure into context, it is approximately twice the amount disrupted due to the mv Ever Given’s six-day blockage of the Suez Canal recently – which is still playing out on some shipping line schedules and in key North European ports.

Leading container shipping operator Maersk Line offers a further perspective at the time of writing: “The current estimated wait is over a fortnight, causing many carriers to divert vessels to other ports. In total, over 300 sailings from all liners will omit Yantian,” it confirmed.

Yantian International Container Terminal (YICT) has also released an update on the position, stating that, “Current overall operational capacity has returned to 70 per cent of normal levels and container yard utilisation has

BRIEFS Samoan Port Canned

exact timescales are yet to be determined and are likely to be linked to future demand.

DP World is also developing an economic zone, linked to the port and strategically located on the Berbera to Wajaale road (Berbera Corridor). It will use DP World’s Jebel Ali Free Zone as a blueprint, with the aim of attracting investment across a wide range of industries, including warehousing logistics service providers and manufacturing sectors.

The new port infrastructure will also be supported by two

8 Berbera Phase 1 development completed and more investment planned

important highway projects. The first is the Berbera Corridor road upgrade, due for completion in Q4 2021, and the second is the Hargeisa Bypass Road due in Q3 2022. These roads are important links to the Ethiopian highway network.

DP World Berbera commenced operations in March 2017 and claims to have reduced waiting time for container vessels from up to five days to only a few hours.

YANTIAN CONGESTION STEADILY EASING

Samoan Prime Ministerelect Fiame Naomi Mataafa plans to cancel a Chinabacked A$100 million port development in her country. It is understood the Chinese Government had been invited by the Samoan Government to scope the proposed development in Vaiusu Bay, which was expected to provide jobs and increase trade and tourism.

While emphasising the importance of Samoa’s seaports and airports to “cater for our needs”, Ms Mataafa says it was “very difficult to imagine” the need for such largescale investment ahead of other more pressing projects.

Hutchison Oz deal

After a three-year dispute, dubbed ‘one of the hardest ever seen’ negotiations in the maritime industry, terminal operator Hutchison has finally agreed a workplace agreement with the Maritime Union of Australia (MUA). The deal includes a 2.5 per cent pay rise over four years once the deal is certified by the Fair Work Commission.

S.Africa change

dropped from 100 per cent to 70 per cent.”

This view is endorsed by Hyundai Merchant Marine (HMM), with the South Korean-based shipping line issuing an advisory to its customers stating that productivity at the port is at 70 per cent.

However, it is important to note that even with improving productivity and lessening congestion it is going to take several weeks to clear, as Dean Davison, Technical Director, WSP explains: “There may be positive

For the latest news and analysis go to www.portstrategy.com/news101

8 Yantian, productivity is improving...but the congestion will take weeks to clear

signs that port productivity is getting better and congestion is easing, but it is going to take a number of weeks to get through the existing backlog of boxes and this is only being helped because so many shipping lines are omitting Yantian from their schedules at the moment.”

On this basis, it is reasonable to expect the situation to run into July before any sense of normal operations can be expected.

As a path to improving port performance in South Africa, Cyril Ramaphosa, President, has moved to make the National Ports Authority (NPA) function as a stand-alone business under the aegis of state-owned Transnet, the port operator and freight logistics company.

Ramaphosa has suggested this new arrangement will see greater investment in port infrastructure but many analysts remain unconvinced. Transnet has come in for criticism as a slow moving entity, poorly customer focused and regularly encountering management problems.

JULY/AUGUST 2021 | 7

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DIGITAL NEWS

VISY OY INTRODUCES ADDS

BRIEFS ADT and Microsoft innovation

Visy Oy has introduced a new Automatic Damage Detection System (ADDS) with the ability to identify surface deformities on a container including dents and bulges. The company states that the efficiency of the system negates the need for trucks to stop for manual damage inspections thereby expediting traffic flow.

The Indonesian terminal, Terminal Petikemas Surabaya (TPS) is the first terminal to apply the system and it now has two ADDS portals in operation and six OCR Portals.

The ADDS is based on the use of AI and vision technology to achieve the high level of surface detection/analysis required to identify all critical container

8 ADDS has the ability to identify surface deformities on containers to a detailed level

damage. The system is able to be integrated into existing Optical Character Recognition (OCR) portals.

The objectives set at TPS were to increase volumes over existing infrastructure, reduce truck turnaround times and costs associated with damage claims.

EU Awards Rotterdam & Co Smart Port Funding and...

An international alliance of 45 companies, port authorities and knowledge institutes, headed by the Port of Rotterdam Authority, has been awarded nearly €25 million in EU funding.

The consortium will be using this grant to execute 10 pilot projects and demonstration projects that focus on sustainable and smart logistics in port operations.

The research project has been given the acronym MAGPIE sMArt Green Ports as Integrated Efficient multimodal hubs – and will run for five years.

A key area that the research programme will address is the use of new fuels and energy carriers that have not yet been tested in practice. This includes production, transport, storage, distribution (fuels) and charging (electric power). Examples include the operation of an electric battery-powered locomotive that uses power from an overhead line for both motive power and for recharging its battery, allowing it to work in areas that lack an overhead line – marshalling yards, for instance.

Other examples include bunkering ammonia as a transport fuel, or electrical power from shore for ships moored

offshore to a mooring buoy.

There will also be several digitalisation and automation solutions explored in the context of the energy transition.

Further, the programme will have a focus on exploring how best to encourage companies to raise the sustainability of their logistics processes and most interestingly the development of a master plan that sets out how transport in, and to and from,

8 A key objective under MAGPIE is determining how transport in and to/from ports can be made carbon-free by 2050

ports can be made carbon-free by 2050 – and what needs to be done in this context before 2030 and 2040.

The results of the various pilot projects and studies will be shared with other European ports, knowledge institutes and companies.

...Rotterdam pilots customs upgrade The Port of Rotterdam also has a pilot project underway aimed at streamlining the customs process through digitisation. The project involves collaboration with key stakeholders: shippers, customs agents, carriers, terminal operators and others.

It particularly aims to reduce turnaround times and waiting

For the latest news and analysis go to www.portstrategy.com/news101

times, and especially in conjunction with refrigerated containers (reefers), which are noted to often originate from so-called high-risk areas.

Delays with refrigerated containers can entail the loss of quality of a cargo or its complete loss with sizable financial consequences.

Abu Dhabi Terminals has announced that it is working with Microsoft to achieve enhanced container tracking and autonomous container shuttle working at its Khalifa Port. The path being taken is an innovative one with the deployment of Microsoft’s cloud, artificial intelligence and Internet of Things technologies all involved.

The base objective is to improve operational efficiency across the board improving turnround times for terminal users, reducing costs and the terminal’s carbon footprint.

Navis upgrade for MICTSL

Madagascar International Container Terminal Limited, an ICTSI subsidiary, has gone live with the latest version of Navis’s N4 terminal operating system (TOS). MICTSL, which handles an annual container volume in the order of 250,000TEU, has been using N4 since 2013 with the latest upgrade aimed at further refining operational efficiency.

Antwerp: Certified Pick-Up next phase

The port of Antwerp reports that it has triggered the second phase of its new digital process for releasing containers, designated Certified Pick-up (CPu).

Instead of using PIN codes, containers will be picked up based on identity from July. The process applies to all import containers unloaded from vessels with the CPu process as a whole said to be safer, more transparent and efficient. CPu works with a neutral, central data platform that connects all stakeholders involved in the import process.

JULY/AUGUST 2021 | 9

DIGITAL NEWS

BRIEFS Project44 buys Clear Metal

Project44 has acquired Clear Metal, a San Francisco-based supply chain planning software company that specialises in international freight visibility, predictive planning and generally promoting a positive customer experience.

Clear Metal describes itself as a leader in real-time visibility of the global supply chain and reports that it has created a “continuous delivery experience” that draws on proprietary machine learning algorithms that can forecast supply chain disruptions. The acquisition of Clear Metal by Project44 follows on from its earlier purchase of Ocean Insights.

10 | JULY/AUGUST 2021

INFORM FOR ABP VEHICLES INFORM has been appointed by Associated British Ports (ABP) to supply it with a comprehensive operating system solution for vehicle terminal management.

The system will be scalable and as such able to be adopted at different locations around the ABP network with the first application at the port of Southampton, a leading port for vehicle handling.

INFORM advises that the new system will make information regarding the location, condition, destination and other relevant data of each vehicle available in real time. The newly developed software will work in conjunction with 5G compatible hand-held devices for vehicle data capture.

Other reported system features are: algorithms that will facilitate real-time decision-making, support to achieve optimal planning/use of resources and the ability to generate a flexible

vehicle loading or unloading plan that is able to adapt quickly to unexpected vehicle availability issues.

A dedicated customer portal will also be established as part of the system and real time linkage

8 INFORM has been appointed by ABP to provide a comprehensive operating system solution for vehicle terminal management – first stop Southampton

also provided to Customs and other key stakeholders.

For the latest news and analysis go to www.portstrategy.com/news101

DIGITAL NEWS PSA Unboxed, the corporate venture arm of PSA International, has invested in and is now partnering with, Roambee in order to develop a verifiable item level, multimodal Full Container Load/Less than Container Load visibility solution and ocean milestone standard.

In terms of application, it is intended that the verifiable ocean visibility achieved will unite the digital and physical aspects of ocean cargo from end to end including: first mile, at port, on vessel and last mile.

Roambee points out that the development approach it will take is different from Electronic Logging Devices (ELD) and the shipping line style Automatic Identification System (AIS). Such systems, it points out, focus on orders and not whether FCL or LCL cargo has completed a particular milestone and reporting this status accordingly.

PSA considers its domain expertise in port and cargo flow

PSA/ROAMBEE WORKING ON SUPPLY CHAIN VISIBILTY

combined with Roambee’s real-time sensor intelligence and immersive location-aware platform, will prove to be a powerful combination via which to achieve supply chain orchestration capabilities.

With accurate supply chain signals, Roambee estimates that it can facilitate 70 per cent

For the latest news and analysis go to www.portstrategy.com/news101

8 Roambee and PSA Unboxed have joined forces and are working on the development of an end-to- end multimodal Full Container Load/Less than Container Load visibility solution

better ETA predictions, improve cold chain compliance and orchestrate timely intervention on exceptions in multimodal transport.

BRIEFS Maersk Digital Dashboard

A.P. Moller – Maersk has launched an innovative new digital dashboard that aims to provide end to end carbon footprint visibility.

The so-called Emissions Dashboard is essentially an analytical data tool set that facilitates carbon footprint measurements from the entire supply chain, presenting a detailed emissions overview whatever the modes of transport employed.

Configured to be a ‘one-stop-shop,’ the Emissions Dashboard conforms to the Global Logistics Emissions Council methodology to calculate emissions.

JULY/AUGUST 2021 | 11

THENEWYORKER BARRY PARKER

HOME DEPOT TAKES TO THE WATER The debate in Washington, D.C. over “infrastructure”- however you define it, is continuing.

Indeed, the uncertain definition is partly why nothing has been agreed as of mid-June. Arguablyand there have been plenty of disagreements, the scope of infrastructure goes far beyond the physical improvements of most concern to the ports community. The intersection of funding roads, rail, bridges and ports with spending in the more “social” category fits into broader definitions of infrastructure supported by some factions in Congress.

This year, in the world of shipping, the whole “ESG” topic has exploded; not a week goes by now without multiple webinars (and soon, real in-person conferences, I hope) on Environment, Social, Governance etc. For commercial maritime participants, much of the attention has been on “E”- issues related to the path towards lower emissions, a discussion intertwined with uncertainty on what future fuels can propel ships, at scale.

Throughout the business, pilot

are often tortuous so the there is no direct social pressure on shipping companies- and on the ports that serve them. At least, not yet.

projects abound - each one having an infrastructure component; the networks for fuels distribution will be a critical factor in determining the success, or not, of their roll-out to the maritime world.

The Republicans and Democrats are not discussing such things explicitly, but the “green economy” backdrop on Capitol Hill provides a hint of the Administration’s likely direction (and maybe, support in the form

8 Home Depot – dedicated ship secured

of monetary allocations and grants) on fuel matters. In the ESG discussions, pundits have often thrown the ball back to “end users” (in this context, the cargo owners) whose names are well known (unlike shipping companies) and are therefore also sensitive to social (the “S”) currents. Yet big cargo owners’ links to shipping in supply chains

GAME CHANGER? One “game changer”, maybe, comes with the news that Home Depot, a giant chain of superstores offering hardware, tools and appliances, will be directly chartering at least one vessel. At this point, I won’t call this a trend, but I would say that I am watching carefully, hoping to observe the relationship between this household brand, and the owners of a vessel. As voyage details become known, destination ports for the ship (which presumably will load containers in Asia for a journey over to the States) may also find themselves in the spotlight.

Home Depot’s move may be a one-time thing, but if other cargo interests take similar stepsgetting closer to the actual vessels in their supply chains, the infrastructure surrounding ports will suddenly get a whole lot more encompassing.

THEANALYST PETER DE LANGEN

For all the right reasons, a lot of attention among port developers, policy makers and regulators is focused on the competition in the terminal and shipping markets and risks of the emergence of dominant positions, for instance due to vertical integration.

There is often less attention for similar risks with regard to the landside of port operations.

However, various cases suggest such attention (from policy makers, regulators and port development companies) can be appropriate in certain circumstances. For instance, the trucking companies in Australia

12 | JULY/AUGUST 2021

THE UNEVEN COMMERCIAL POWER RELATIONSHIP heavily criticise a new set of fees and rules of a container terminal operator (Patrick Terminals). They argue for ‘assistance and regulatory oversight’ to help balance the uneven commercial power relationship between landside stakeholders and stevedore companies.

This case is not alone. In fact, the issues of low service levels and/or unfavourable fees and conditions for road, rail and barge operators are widespread. As a couple of examples, in Rotterdam, the competition authority demanded a modification of barge handling

processes of a large container operator, while in Georgia, the competition agency banned a newly introduced set of rules and prices for truck handling by APMT, the operator of Poti, Georgia’s largest port. In Brazil, there similarly is a huge controversy regarding the charges and conditions.

The phrase ‘uneven commercial power relationship’ will resonate with inland operators internationally. In virtually all countries, inland operators, with the exception of rail operators in some countries, are relatively small.

The call from landside operators for attention from regulators is easy to understand but given all kinds of constraints of regulators, any solution based on a ruling of a competition authority is likely to be very imperfect. One key mechanism to secure attractive conditions and service levels to landside operators would seem to be including clauses on conditions and service levels in concession contracts.

Nevertheless, this is far from standard practice among port management bodies.

For the latest news and analysis go to www.portstrategy.com/news101

THEECONOMIST BEN HACKETT

Ports struggle with congestions, carriers with lack of capacity and countries with more COVID-19.

The Pressure is not letting up.

Western Europe and the U.S. are self-congratulating themselves as the COVID-19 vaccination roll-outs gather pace and are preparing to remove most of the restrictions to normal life of the past 18 months.

Meanwhile Australia, New Zealand and Singapore continue to barricade their islands against the virus onslaught.

Yet the virus refuses to be defeated as new, more infectious variants appear. China is also facing serious problems as their ports in the Pearl River Delta are facing renewed outbreaks causing a port shutdown at Shenzen’s port of Yantian and carriers cancelling calls to other ports in the region.

The pressures are causing a backlog of goods to be exported and congestion as some ships wait to see if they can enter the impacted ports. The bottleneck is the latest COVID-related disruption to hit supply chains, as

GLOBALISATION AND SUPPLY CHAIN REMAIN AT RISK

China exporters are scrambling to meet surging demand in the West.

The unprecedented demand has put pressure on the supply chain as there are bottlenecks not only in Asia but in the European and American ports with ships waiting for docking space. Ports are struggling with labour shortages as are hauliers and inland freight depots.

Carriers and terminal operators are talking about congestion delays continuing throughout the remainder of this year. Los

Angeles estimates that it will likely spread into 2022.

The North America Global Port Tracker projects container imports, in 20-foot equivalent units, into major U.S. ports in May, at over 2.3 million which puts it on track for the busiest month in Global Port Tracker records dating to 2002. As one CEO of a major shipping line said following the rebound from the 2008 Great Recession: “Where did all that come from?”

Trade wars aside, there is a growing trend for industrial

companies and importers of consumer goods to look to find near shore suppliers as the way around these problems. This puts increasing pressure on the tenants of globalisation where cheap labour is the end all and be all for the international trade of goods.

This is especially true as ocean freight costs continue to increase at an unprecedented rate.

Ports need to take this into account in their longer-term strategic planning.

THESTRATEGIST MIKE MUNDY

LIVESTOCK REFORMS MOOTED Anyone who has had the dubious pleasure of standing downwind of a livestock carrier in port will surely empathise with the growing calls for greater scrutiny and regulation of this trade. The smell generated immediately generates questions as to what life is like onboard for both crew and the animal cargo.

The publication of a new report by the Animal Welfare Foundation (AWF) and recent events involving Spain and Turkey, however, provide a much greater incentive to consider reforms to the maritime transport of livestock.

The AWF report focuses on 78 EU certified vessels and draws some damming conclusions, including: 5 The global average age for scrapping vessels is 30 years.

The vessels studied, however, already averaged 29 years when they were converted into EU-approved livestock carriers.

5 Fifty-five per cent of the vessels are registered under flags from risk and high risk countries as defined by the Paris Memorandum of Understanding on Port State Control (Paris MoU).

5 Fifty-three of the vessels have been detained on numerous occasions by Paris MoU port state control, with over two thirds of them classed by non-IACS class societies.

The net conclusion drawn from these and allied findings, by a number of involved parties, is that the European Commission is not doing enough to regulate the call of such vessels at EU Ports.

Typically, Reineke Hameleers,

For the latest news and analysis go to www.portstrategy.com/news101

CEO, Eurogroup for Animals, the pan-European advocacy organisation for animals, states: “This new study proves once again that live animal export is not a correct practice with regards to animals, humans and the environment. “The only solution,” he suggests, “is to revise the Transport Regulation to limit as much as possible the unnecessary suffering that live transport implies. With our ‘No Animal Left Behind’ campaign we’re calling on the Commission to forbid live export to third countries and intra-EU long distance journeys and to set species and category specific requirements for the remaining journeys” Adding further fuel to the fire of the case for reform is recent experience with the vessels Karim Allah and El Beik which left

the port of Cartagena, Spain in December within one day of each other bound for Turkey. The former had 895 cattle aboard and the latter nearly 1800 cows. On arrival, however, both vessels were not permitted to discharge their cargoes due to concerns over an outbreak of the insect borne bluetongue disease in the province of Huesca, Spain.

The Karim Allah ended up back in Cartagena near the end of February and subsequent to this Spain’s Ministry of Agriculture determined all the cattle onboard should be slaughtered. The El Beik also returned to Cartagena in March where the same fate befell her much larger cargo.

There certainly appear to be good grounds for reforms to be considered in conjunction with this controversial trade.

JULY/AUGUST 2021 | 13

EQUIPMENT NEWS

US: ELEPHANT IN THE ROOM RESURFACES The current contract between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA), representing the workers and employers, respectively, for container terminal activities on the West Coast of North America runs until July 1, 2022.

However, there are already signs of potential tension ahead of the expiration of the deal, over a very familiar subject – terminal automation.

Negotiations between workers and employers will begin ahead of the contract finishing, of course, but there are already concerns that the unions may want to push back on the subject of automation. There is recent history here too.

In 2019, there was a dispute between APM Terminals and dock workers at the Port of Los Angeles when the ILWU opposed plans to install hybrid electrical equipment that would have recharged batteries used to power automated operations.

More recently, April 2021, the ILWU supported plans not to allow “automated machinery from replacing longshore workers” at the new T5 development at the Port of Seattle, with the US state of Washington passing legislation banning the purchase of fully automated handling equipment.

Then in May 2021, Total Terminals Inc (TTI) announced a desire to automate its 385-acre Pier T facility

BRIEFS EU Green Trucks

The European Union (EU) is offering truckers an opportunity to reduce their operating costs, if they use vehicles that reduce carbon and air pollution. A new road tolling system, in place from April 2023, will see annual road toll costs, which can be as much as €25,000 (US$30,000) per annum, reduced by at least 50 per cent if the vehicles used are zeroemission or powered by either electric or hydrogen.

14 | JULY/AUGUST 2021

8 Terminal 5 Seattle – full automation is prohibited following legislation passed by the State of Washington, USA

at Long Beach, but the union immediately said the move will eliminate some dockworker jobs.

These examples are despite the ILWU agreeing, as far back as 2008, to allow container terminals to introduce automation. More worryingly, it reaffirms the deep opposition between the employers and unions over the whole concept of automation on the US West Coast.

Employers naturally will be concerned that the ILWU workforce could start to place pressure on terminals by introducing operating slowdowns – at a time when Southern California struggles to recover from recent severe congestion and faces a constant battle to stop cargo shifting to the East Coast and both Vancouver (BC) and Prince Rupert.

It should be remembered that cargo operation delays have occurred during almost every negotiation going back over 20 years, including the 10-day shutdown of the ports in 2002 and a six-month period of disruption during 2014/2015.

Due to the fear of negative impacts on networks and supply-chains, employers have often conceded to ILWU demands. Union members receive some of the highest wages and best benefits of any union workers in the USA, despite low production. According to industry analysts, Dataand, the West Coast ports are, on average, 30-35 per cent less productive than counterparts on the East and Gulf Coasts of the USA. This issue looks set to ramp up.

MHC GENERATION 6 FOR KONECRANES Konecranes, has launched its new, 6th generation mobile harbour crane.

Generation 6 represents the first comprehensive revamp of Konecranes Gottwald’s mobile harbour crane portfolio in 15 years. The company confirms that it has worked closely with customers on a global basis to develop its new cranes and feels that the release date comes as growth in global bulk and general cargo handling markets is accelerating.

Flexibility is clearly part of what the company is seeking to achieve, reporting that the new units can eco-efficiently service any type of vessel and a wide range of different cargoes, including containers, general cargo, project cargo and bulk commodities, across all geographic locations and on a quay or barge.

Generation 6 units are designed for electrical power use, meaning there are no direct carbon emissions during use,

which can be supplemented with hybrid drives if required.

In addition, Konecranes claims the durable design and construction will double the service life of each crane compared to previous versions, while more powerful lifting capacity and higher working speeds generate greater efficiencies and faster cargo turnaround times.

In 2020, Konecranes group sales totalled €3.2 billion. It has around 16,600 employees.

Northport Invests

BEST Boosted

Mailiao Service Deal

Northport in New Zealand is investing US$6.2 million in new equipment to support container traffic growth. Operator of the facility, Northport Ltd, is purchasing two new reach stacker handling units, plus a new dock-truck and MAFI trailer.

A simulator module to train staff with new equipment is also being added. Northport Ltd is expecting to see a 15 per cent year-onyear increase in container traffic throughput for the financial year ending June 30, 2021.

The Hutchison Ports BEST terminal in Barcelona, Spain has commissioned two new gantry cranes and two new shuttle carriers, which arrived at the terminal at the beginning of May. With this new equipment, BEST now has a total of 13 quay cranes capable of operating the world’s largest container ships of more than 23,000TEU capacity and can operate up to three vessels of this size simultaneously.

Bruks Siwertell has secured a new service contract that will see it deliver original equipment manufacturer (OEM) parts and expertise to a long-serving ship unloader at the 4200 MW Mailiao power plant; the third largest operating in Taiwan. Six large Siwertell unloaders are on-site handling salt and coal at a rated capacity of 2000 tonnes per hour, discharging vessels up to 180,000 dwt. The project is due for completion in 2022.

For the latest news and analysis go to www.portstrategy.com/news101

EQUIPMENT NEWS The Sudanese Ministry of Transport, on behalf of the Sea Ports Corporation of Sudan (SPC), has commissioned HPC Hamburg Port Consulting to help improve terminal operations at the South Port Container Terminal (SPCT) in Port Sudan.

The primary objective for Sudan’s only international container terminal is to upgrade its performance and increase overall competitiveness in the region. Noted targets from the project include a significant reduction of vessel waiting times and higher productivity of cargo handling equipment and terminal operations, while increasing equipment availability.

H.E. Mergani Musa Hamad, Minister of Transport, Sudan, explained the thinking behind the process in more detail. “For our country, SPCT is the gateway for international trade and a major employer for the region of Port Sudan. We, therefore, strive for a modern, effective container terminal that will be a growth engine for the city and our entire country. We want to do this in a transparent, collaborative manner and with Kalmar is introducing a new range of rubber-tyred gantries (RTG). There are five new models with each one comprising a stronger, lighter and simple module design armed with intelligent features as the company targets new eco-efficient solutions for container handling.

The range consists of the Kalmar AutoRTG, the Kalmar Zero Emission RTG, the Kalmar Hybrid RTG, the Kalmar SmartPower RTG and the Kalmar Classic RTG. All units are reported to be powered with highly efficient powertrains.

An interesting option is the Kalmar AutoRTG. This is powered by the Kalmar One Automation System, which basically means that a terminal can look to automate its operation at a pace that suits them. Operators have greater flexibility to choose the level of automation that best suits their business but based on predefined AutoRTG blueprints for streamlined application of the equipment.

All new models are fully automation-ready. In addition,

PORT SUDAN TARGETING IMPROVEMENTS

the support of internationally recognised port experts.”

HPC has confirmed that it plans to create greater efficiency of operational and administration processes to speed up ship handling processes, while helping introduce a planned maintenance system and efficient repair services to ensure higher equipment productivity and reduce operational costs. Besides higher terminal efficiency, the envisaged programme emphasises comprehensive

8 The Government of Sudan is hopeful HPC can upgrade performance at South Port Container Terminal

training in health, safety, security and the environment.

Measuring the success of this programme promises to be interesting with Sudanese port workers having a reputation for resisting change as witnessed recently in conjunction with the failed privatisation of the container terminal. Port workers were the force behind halting the implementation of privatisation.

NEW KALMAR RTG RANGE Kalmar is able to customise the size of the units according to specific customer specifications up to 10+1 wide, which ensures maximised stacking efficiency.

Marko Rasinen, Product Manager, Kalmar, explained further. “The new generation of RTGs is a major update on our proven and highly popular RTG platform. We’ve implemented hundreds of improvements using the latest technologies based on

feedback from our customers.

Virtually every system has been improved in one way or another, bringing a vast range of benefits across the board and establishing a new standard for the category.”

Additionally, all new-generation RTGs are connected to the Kalmar Cloud, which makes it possible to monitor the cranes away from the terminal and benefit from remote support from the Kalmar service team.

8 The Port of Kiel is reducing emissions from visiting cruise ships through use of the ShoreCONNECT mobile carrier system which connects electrical power to vessels at port, eliminating the need to use diesel

For the latest news and analysis go to www.portstrategy.com/news101

BRIEFS Liebherr for Veemnatie

Liebherr has delivered the largest crane from its portfolio of mobile harbour cranes to Veemnatie’s new, r ecently developed, dry bulk terminal at the Port of Antwerp. The LHM 800 is the first Liebherr mobile harbour crane of this size in the Benelux region. It has a 64m boom to maximise reach for bulk operations.

The new facility has an initial capacity of 300,000 tonnes per annum, although further expansion is anticipated.

Cavotec Award

Pilbara Ports Authority has selected Cavotec to extend the lifetime of its mooring system. The major service contract awarded in Western Australia is to maintain and upgrade the MoorMaster system over the next four years.

The modular design of MoorMaster allows the authority to continue using the system as one unit at a time is serviced.

The system eliminates the need for conventional mooring lines by replacing them with automated vacuum pads that moor and release vessels.

Port-La Nouvelle Fenders

ShibataFenderTeam has designed and delivered a fender solution for the new berth at Port-La Nouvelle in France. A total of 17 sets of SPC 900 Cone Fender Systems, with a closed steel panel design measuring 2300mm x 3450mm were put in place, supported by 18 T Head Bollards with a capacity of 100 tonnes each. The 230-hectare port specialises in liquid and bulk cargo handling and storage activities.

JULY/AUGUST 2021 | 15

THEENVIRONMENTALIST CHARLES HAINE

With the G7 having finished building sandcastles in Cornwall, UK and the world jetting into Glasgow for COP26 on the November horizon, the media is awash with talk of climate change and the incredible challenge ahead. If we are to make headway, much of the parlance you’re going to hear is going to be linked to sciencebased targets (SBT).

In March 2021, the SBT initiative (SBTi) launched a draft guidance document for the maritime transport sector1. There’s a tool in play to help shipping companies set a SBT for reducing GHG emissions with the guidance outlining the rules – all in alignment with the UNFCCC 2016 Paris Agreement.

This means limiting the increase in temperature to well below 2°C and pursuing efforts to keep it within 1.5⁰C of preindustrial levels. It’s some ask for a sector that is so diverse, complex and hard to measure, let alone abate. The Energy Transitions Commission noted that shipping is the most difficult transport mode to decarbonise because of the high CAPEX costs per tonne of CO2 requiring elimination and unpredictable asset lifespans.

There are a few stand out points from the guidance. The tool usefully breaks down carbon intensity targets by vessel type sand size, mirroring the Fourth IMO GHG Study (Faber et al., 2020). Imagine the emissions (per tonne nautical mile) from a fully loaded 5000DWT chemical tanker compared to say, a packed 20,000TEU Ultra Large Container Vessel. You’ll need to have to

SMARTER SCIENCE-BASED EMISSION TARGETS

hand base year emissions, and base and target year ‘activity’ data - no more than 15-years ahead - to generate meaningful targets that SBTi can validate.

Critically – and this is a departure from the IMO – the guidance requires well-to-wake (WTW) emissions, i.e., those generated in the fuel’s production and distribution/transport to the point of use, in addition to tank-to-wake (TTW), i.e., emissions generated from its combustion. Current IMO guidance includes only TTW. Handily, the tool has separate sections for vessel owners and operators (i.e., those setting targets for the vessels), and for shippers and logistics service providers (LSPs) – those that contract shipping services who

‘‘

can then set reduction targets for their supply chain. Cruise and passenger ferries are also covered by the use of a gross tonnage nautical mile metric.

Mixed cargoes are catered for too, and can be factored in. It’s all getting much smarter and more granular.

In order to become approved, targets have to be phrased correctly, communicated and updated if there are material changes (e.g., acquisitions and divestitures), which happens often in our dynamic maritime world.

NO CHOICE The sector, like all others, has no choice but to decarbonise within 29 years, despite the naysayers and sceptics. Researchers are saying the sector might be able

Shipping is the most difficult transport mode to decarbonise

8 Rotterdam is one of a growing number of ports looking into becoming an e-fuels hub

to stay within the 1.5⁰C target if all the short-term measures (e.g., slow-steaming, propeller design, hull friction enhancements) come together in some kind of marginal gains benefit alongside the uptake of alternative fuels.

That’s where ports will have to pay attention to market demand (and financing arrangements) to provide hydrogen, methanol or other e-fuels as well as renewables in that currently unknown onshore mix.

Robust regulation is touted by stakeholders as the incentive to drive towards net zero but sector-specific tools like this one are equally as important for us to be able to measure and manage and thus anchor decision-making on targets and step-change improvements, in real data.

Developed on behalf of SBTi by WWF, the Smart Freight Centre and University Maritime Advisory Services (UMAS).

1

For the latest news and analysis go to www.portstrategy.com/news101

JULY/AUGUST 2021 | 17

DRC: PORT DEVELOPMENT STRATEGY

BANANA CASE STUDY Do the scale economies of shipping freight costs offset high inland charges?

A J Keyes examines the interesting case of the Banana port project in the DRC One of the often challenging questions considered in assessing the viability of new port projects is will the scale economies offered via larger vessels calling at a deepwater port offset higher inland charges? In practical terms, this often means will the construction of a new port closer to the sea, compared to an estuary or river port, but further away from the main market served be able to deliver real and meaningful economies of direct benefit to cargo owners?

There are also satellite issues that impact this question – for example, is the new port development site a greenfield site where the cost of development will be higher or is the proposed location one subject to coastal erosion and the effect of ocean dynamics (height of swells, speed of breaking waves, tides storms and so on). With these sort of factors in play, they inevitably bump up total development cost.

These fundamental questions invariably become much more important in a developing country situation where due to limited financial resources there is less support available from the public sector to resolve some of the wider port development issues right through from establishing efficient road and rail infrastructure to essential sea defences. For a private developer, the bottom line is that it will, almost always, entail more cost.

THE CASE OF BANANA The case of the new port project proposed for the Democratic Republic of the Congo at Banana, located close to the mouth of the Congo River, is an interesting one to consider in the light of the above factors.

Terminal operator DP World announced in early May this year that it is set to commence work on the deep-sea port development here secured under a revised concession agreement with the current ‘Sacred Union of the Nation’ government led by President Felix Tshisekedi. The original concession was established in 2018 in conjunction with the previous government led by ex-President Joseph Kabila.

The key question is, will the freight rates offered by the larger vessel calls at Banana compensate for the lower inland transport charges available from the river port of Matadi, which is located much closer to the main market of the capital city of Kinshasa? Table 1, showing built-up delivery costs for a 40ft container from Shanghai via Matadi and Banana provides a clear answer – they will not. While the ocean freight to Banana is cheaper to the tune of US$825.00 the inland transport cost from Banana is US$2400.00 more expensive wiping out the ocean freight advantage.

Corridors

Distance (Km)

Costs (40’)

Pointe Noire to Brazzaville

573

US$

1 927,00

Banana - Kinshasa

565

US$

4 500,00

Matadi - Kinshasa

343

US$

2 100,00

Banana - Matadi

218

US$

2 500,00

Table 2 provides a further comparative perspective of the inland distances involved and associated costs and again highlights Matadi as the most cost-effective gateway – where it should also be noted there is recently established modern container handling facility in operation.

Pointe Noire is the location of a deep-water container terminal in The Congo which could potentially serve Kinshasa. Road and rail services run from Pointe Noire to Brazzaville, capital of The Congo, which is located on the northern banks of the Congo River directly opposite Kinshasa.

While, however, there has been much talk of building a bridge across the river the idea still remains firmly on the drawing board. This route would also of course be subject to border crossing formalities and hitherto undefined costs.

8 Table 2: Inland Transport Corridors – Ports to Main Market of Kinshasa

WIDER ISSUES On the topic of overall development cost, Banana also raises some interesting questions – the DPW project has a first phase development cost of US$350 million rising to US$1 billion over a proposed four phases. Other informed sources, however, cite an overall development cost for Banana as high as US$2 billion.

There will be extensive interfacing road development costs – the road from Banana to Boma en route to Matadi is presently just a gravel road and requires extensive bridge construction. A rail link is only possible with new track construction to connect with the existing rail system at Matadi and the DRC coastal zone is problematic suffering heavy coastal erosion with a sea level that can rise by as much as two metres.

From a competitive standpoint, dredging of the Congo River to provide access for WAF-Max vessels can be achieved at an estimated cost of US$50 million and for transshipment traffic the nearby Bollore Pointe Noire facility already has a strong foothold in this sector.

Last but not least, there is the issue of the size of the container market – the DRC is one of the poorest countries in Africa and as such in the near to medium term the prospects for container growth complementing the installed capacity for a deep-water terminal appear limited.

Shanghai via Matadi

40’

Shanghai via Banana

40’

Ocean Freight

8,100

Ocean Freight

7,275

Local charges (Destination)

696

Local charges (Destination)

696

Yard handling (Vat and RLT Incl) & storage

2,402

Yard handling (Vat and RLT Incl) & storage

2,402

Transportation(Matadi to Kinshasa)

2,100

Transportation(Banana to Kinshasa)

4,500

Total

13,29

Total

14,873

For the latest news and analysis go to www.portstrategy.com/news101

8 Table 1: Built-up Delivery Costs (US$) for a 40ft container, China to Kinshasa via the existing port of Matadi and proposed port of Banana

JULY/AUGUST 2021 | 19

Piraeus2021

GREENPORT Cruise Congress &

Hosted by:

Conference Programme Advancing the Green Deal Through Collaboration Sponsored by:

GOLD SPONSOR

The world’s leading conference on environmental Ports’ aspects comes to Piraeus, Greece.

Join us for two days of conference presentations and learn from the foremost experts in environmental technologies.

visit: greenport.com/congress contact: +44 1329 825335 email: congress@greenport.com

#GPCongress

SILVER SPONSOR

Supported by:

Media Partners:

GREENPORT

BALANCING ENVIRONMENTAL CHALLENGES WITH ECONOMIC DEMANDS

Book Online at greenport.com/congress or fax form to +44 1329 550192

DAY ONE - Wednesday 20th October 2021 0800 Coffee and registration 08:30 Opening by Chairman/Moderator 08:35 Welcome Address by Port of Piraeus, Minister of Shipping and Mayor of Piraeus 09:15 Gold Sponsor Address - Cavotec

Keynote addresses 09:20 The green agenda of European ports Isabelle Ryckbost, Secretary General - European Sea Ports Organisation 09:35 Decarbonisation begins at berth: the roles and opportunities of ports and carriers Roger Strevens, VP, Global Sustainability - Wallenius Wilhelmsen 09:50 The cruise industry’s uptake of LNG and the future of it Linden Coppell, Director of Sustainability, MSC Cruises 10:05 Q&A with presenters and special guests 10:25 Coffee & Networking

Session 1 – Greening of Ports and Shipping including alternative fuel projects 10:55 Environmental sustainability in ports: strategies and practices at Piraeus Port Chrysanthi Kontogiorgi, Head of Environmental Sector, Port Security and Environmental Protection dpt, Piraeus Port Authority 11:10 The energy transition strategy of Port of Aveiro towards the European Green Deal Maria Manuel Cruz, Port of Aveiro Environmental Manager 11:25 Ammonia as an alternative fuel Mr Malte A. Siegert, Chairman - NABU 11:40 The role of ports in the hydrogen supply chain Lars Greiner, Associate Partner Responsible for MEA Region, HPC Hamburg Port Consulting GmbH 11:55 Q&A 12:15 Lunch & Networking

For further information please call +44 1329 825335 or email congress@greenport.com

For further information please call +44 1329 825335 or email congress@greenport.com Session 2 – Cruise Stream

Congress Stream

A sustainable future – developments in Green Cruise Terminal Projects

Sustainable development - local and global initiative for common advantage

13:35

Cruise Europe strategy for sustainable cruising- port reception facilities and new technologies Captain Michael McCarthy, chair of Cruise Europe

13:35

The environmental management of small ports – challenges and options Dr Georgios Palantzas, Aristotle University of Thessaloniki

13:50

Sustainable infrastructural and operational characteristics in Piraeus cruise terminal Nektarios Demenopoulos, Deputy Manager of PR, IR & Company Announcements Dpt., Piraeus Port Authority

13:45

We can change. Together. With SIHARBOR Knut Marquart, Global Head of Siharbor, Siemens

14:00

Best environmental practices in port reception facilities Stelios Karampelas, Head of Port Reception Facilities - Antipollution

The road to net zero: local solutions to a global challenge Caroline Price, Green Ports Director - Royal Haskoning DHV

14:15

The sustainable operations of the Horizon Cruise Terminal Rebekah Keeler, Head of Cruise, Associated British Ports

14:30

Recent advances in harmonizing marine seaport infrastructure with the environment Wiebe de Boer, Sr. Project Manager Ports & Coasts - Deltares The EU green deal and the Western Balkans Maritime Ports of the extended TEN-T Network – Challenged and opportunities Kristijan Lezaic, Desk officer for Waterborne Transport - Transport Community

Q&A

14:45

Q&A

14:05

14:20

12:00 14:50

1505

Coffee & Networking

Session 3 – Cruise Stream What’s next for the cruise industry – taking a look at the latest in sustainable cruise ships & technological innovation 15:35

Congress Stream Policy & Environmental Workshop - ESPO

The environmental vision of MedCruise ports 15:35- Moderator: Ms Valeria Mangiarotti, Senior Vice President 16:55 Valter Selén, Senior Policy Advisor Sustainable and Director of Sustainability and Environmental Development, Cruise and Ferry Network, Issues - Medcruise EcoPorts Coordinator - ESPO Workshop facilitators: Professor Vasilis Tselentis, University of Piraeus

14:30 14:50 16:35

Professor Aristotelis Naniopoulos, Professor, Head of Transport Systems Research Group, Aristotle University of Thessaloniki

Q&A

Session 4 – POSEIDON-MED II and New Practices in LNG 16:55- The boost of LNG marine may be a key to enhance the sustainability of port areas, protecting health of 17:40 population and cultural heritage. The Poseidon MEDII Project aims to contribute to reducing negative impacts of heavy fuel oil powering and to facilitate the implementation of the requirements of a number of EU Directives regarding alternative fuels for a sustainable future in the shipping industry.

This panel showcases relevant projects and other key new practices in LNG on how they are successfully implementing the use of LNG. 17:40 Conference Close CONFERENCE DINNER – Hosted by the Port of Piraeus

Book Online at greenport.com/congress or fax form to +44 1329 550192 Book Online at coastlink.co.uk/book or fax form to +44 1329 550192

Book Online at greenport.com/congress or fax form to +44 1329 550192

DAY TWO - Thursday 21st October 2021 0820 Coffee and registration 09:00 Opening by Chairman/Moderator 09:10 Morning Welcome Ms. Lamia Kerdjoudj-Belkaid, Secretary General, Federation of European Private Port Companies and Terminals

Keynote addresses 09:25 IAPH/WPSP sustainability initiatives on the decarbonisation and digitalisation of ports Dr. Antonis Michail, Technical Director, World Ports Sustainability Program, IAPH 09:40 ESPO Environmental Report.

Valter Selén, Senior Policy Advisor Sustainable Development, Cruise and Ferry Network, EcoPorts Coordinator - ESPO 09:55 Jackie Spiteri, Senior Manager ESG, Port of Newcastle

09:10 Session 5 – Powering Ports - Energy efficiency improvements and on-shore power supply 10:10 Local renewable power generation and energy efficiency measures in smaller ports Mr. Alex Ruijs, Senior Consultant Electrical Power & Energy - Royal HaskoningDHV 10:20 On-shore power supply at Piraeus Port: prospects and challenges Mr. Klaus Kopelman, COO - Shore-Link 10:30 OPS for container ships: Hamburgs first step toward Zero Emission at Berth Jochen Homann, Environmental Advisor - Hamburg Port Authority 10:40 On-shore Power Supply at Piraeus Port: Prospects and Challenges Christos Gerakarakis, Manager of Projects Dpt, Piraeus Port Authority 10:50 The implementation of OPS at Haropa Port M. Hervé GERAUD – OPS project manager at HAROPA PORT 11:00 Q&A Panel Session 11:30 Coffee & Networking

11:00 Session 6 – Port Equipment - Supporting the drive for improved sustainability & efficiency Moderator: Pat O’Leary, Head of Technology, PEMA - Port Equipment Manufacturers Association 11:50 The green transition: Towards fully electric operations Mette Kjems Baerentzen, Product Portfolio Manager – Kalmar 12:00 Supercharge emission reductions with the latest automated mooring technology Nicklas Vedin, Global Product Manager, MoorMaster™ at Cavotec 12:30 Q&A Panel Discussion 13:00 Lunch & Networking

For further information please call +44 1329 825335 or email congress@greenport.com

For further information please call +44 1329 825335 or email congress@greenport.com 14:00 Session 7: The Green Deal – moving forward with green logistics 14:20 Mr Boris Wenzel, President of the Terminal Industry Committee 4.0 14:35 Port sustainability – formulating chaining strategies of good practices Dr. Sotirios Theofanis, Professor of Practice, City College; Member, BoD ThPA S.A.; Affiliated Faculty, Center for Advanced Infrastructure and Transportation (CAIT), Rutgers University.

Prof. Maria Boile, Department of Maritime Studies, University of Piraeus; Head of Unit, Hellenic Institute of Transport (HIT), Center for Research and Technology Hellas (CERTH); Affiliated Faculty, Center for Advanced Infrastructure and Transportation (CAIT), Rutgers University.

14:50 Measuring emissions in the maritime logistics supply chain – moving from the GLEC framework to an ISO standard Nicolette Van der Jagt, Director-General, CLECAT 15:05 Holistic energy upgrading and performance optimisation for green ports Mr Lyridis Dimitris, Associate Professor, National Technical University of Athens, School of Naval Architecture & Marine Engineering 15:20 Q&A

15:40 Coffee & Networking

15:50 Session 8: Digitalisation for improved port efficiency 16:00 Digitalization tools and technologies to support environmental sustainability in ports: the GREEN C-PORTS and PIXEL projects Dimitris Spyrou, EU Projects Consultant, Strategic Planning & Marketing dpt, Piraeus Port Authority 16:15 Taking small and medium sized ports on board with digitalization Mr. Ville Mäkeläinen, Chief Business Development Officer, GISGRO 16:30 Sustainable electrification and digitalisation for greening small and medium-sized ports along the TEN-T corridorss Christopher MEYER, M.Sc - Wismar University of Applied Sciences: Technology, Business and Design 16:45 Realize sustainability through software Ruud Vossebeld, Director Business Development, Automotive Port Logistics, INFORM 17:00 Q&A 17:20 Conference Wrap up by Conference Chairman/Moderator 17:30 Conference Close

DAY THREE - Friday 22nd October 2021 Port tour - 09:40-11:30 The Port of Piraeus is the largest port in Greece and one of Europe’s largest ports. Join us for a detailed tour of this historic port. *invited

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NORTHERN SEA ROUTE

ARCTIC POTENTIAL CAPPED Market analyst Andrew Penfold explores the viability of the Northern Sea Route and the implications for the port sector

8 MSC is among the non-believers recently confirming its commitment to avoiding the North Sea Route on environmental grounds

The continuing reduction in Arctic ice levels has been hailed as offering a potential alternative to trade between East Asia and Northern Europe. There are economic arguments in favour of this but take up has been slow and some resistance evidenced.

Given recent upheavals in established container trades what are the realistic prospects for this option?

ECONOMIC ADVANTAGES Routeing ships via the north of Canada has been considered but by far the greatest potential is for movements of goods between Asia and Europe. There are cost savings, but there are also major difficulties for this part of the market Of course, the key driver is the shorter haul lengths involved – Shanghai to Rotterdam via Suez is some 10,520nm, via the Northern Sea Route (NSR) its 8350nm. This means (in theory at least) lower shipping costs and no fees for Suez transit.

According to the latest data from PAME (Protection of the Arctic Marine Environment) the number of vessels utilising at least a part of the NMR has increased from 784 in 2013 to 977 in 2019 – although the total has since stabilised. Fishing vessels accounted for 45 per cent of the total but there has been an increase in bulkers and tankers in the region with some experimental container voyages.

WHICH TRADES COULD BENEFIT? MPL has undertaken a review of the different trades where this short haul length could see some redirection of trade.

The following have some potential: West to East 4 Steam coal and coking coal – Poland to NE Asia / China 4 Iron ore Norway/Sweden to NE Asia /China 4 Oil & oil products – northern fields to Asia 4 LNG – northern fields to Asia 4 Other bulk cargoes 4 Containerised cargoes – on a liner basis 4 Cars and vehicles 4 Frozen fish East to West 4 Containerised cargoes – on a liner basis 4 Cars and vehicles 4 Neo-bulks – steel products / forest products, etc.

4 Frozen fish There is no doubt that these cargoes could be shipped on this route but in addition to shipping costs there are several other factors that need to be considered, if the theoretical

Trade Category

Ship Size Capacity

Liner Service Feasibility

All-year Service (Seasonality)

Cost Savings

Time Savings

Potential Growth

Total

Dry Bulk

**

*****

***

***

**

***

18

Tankers

**

*****

***

***

**

***

18

LNG

***

****

**

***

**

*****

19

Containers

**

*

*

****

****

***

15

Cars/Vehicles

****

**

***

***

****

***

19

8 Table 1: NSR potential by shipping sector

Suitability of NSR * = poor, ***** = good

20 | JULY/AUGUST 2021

For the latest news and analysis go to www.portstrategy.com/news101

NORTHERN SEA ROUTE

‘‘

Cost savings suggest some potential for the NSR but there remain severe practical difficulties potential is to be realised. These include the ship size capacity of the route (there are some restrictions around the New Siberian Islands and the Sannikov and Dmitry Laptev Straits).

The requirement for regular liner capacity can be critical – especially for containers together with no seasonality considerations. Cost and timing savings and also scope for rapid demand expansion are also critical. These different factors have been synthesised and summarised in Table 1.

Clearly, the greatest interest has been focused on the container sector where the shorter haul length, in theory at least, offers a real potential saving. A sample analysis has been developed looking at voyage costs for shipments from Shanghai to Rotterdam via Suez and comparing this with the NSR. The results are summarised in Figure 2.

There are some uncertainties as to the viability of routeing container vessels via the NSR given draught restriction in the least ice-effected routes. However, on the basis of current vessel trading costs it has been calculated that a deployment of an 8000TEU capacity vessel would record a saving of between US$75-90 per TEU if routed via the NSR. The saving is larger for 12,000TEU vessels.

These vessels have been selected on the basis of estimated maximum draught clearances on the least iceeffected routeings. It should be noted, however, that much larger vessels – up to 24,000TEU – are the norm in the direct Asia-Europe trades via Suez, so the comparative cost saving is, in reality, much less.

WHAT ARE THE PRACTICAL CONSTRAINTS? These cost savings suggest some potential for the NSR but there remain severe practical difficulties, including: 4 The distance advantage is limited to the north-east Asian export region. The relative position is rapidly undermined for SE Asian suppliers – this is the region where postChinese growth will expand most rapidly.

4 The vessel size limitations will undermine the theoretical cost savings stemming from the shorter sea route. The rapid increase in vessel sizes in the past ten years has reduced some of the urgency in developing this route.

4 Although the trend is clearly for a reduction in ice cover in the Arctic, there reman significant year-on-year fluctuations. This would clearly upset the round-the-year reliability necessary for stable liner services.

4 Seasonality is a further constraint, with liner services potentially operating unimpeded between July and November. Services will be problematic outside this window.

4 There is a lack of supporting infrastructure on the NSR. Any problems with vessel breakdown or other upsets would be extremely difficult to manage. It will take some time to build-up the necessary supporting tug, icebreaker, and associated services.

4 The full insurance position for routeing high value vessels and cargoes on the NSR is not established.

4 The geopolitical position is less favourable than it was as recently as five years ago. There will be reluctance to utilise this routeing by independent liners in the current climate.

8 Figure 1 – the Northern Sea Route

commodities where strict liner deliveries are not the top priority. This means bulk cargoes.

Comprehensive stocking and management policies could be employed for selected dry bulk cargoes in order to benefit from lower transport costs. In addition, local LNG production and required services for these developments will also offer potential for increased use of the NSR. These changes could proceed rapidly with little additional investment requirements.

When it comes to liner container services it seems certain that the practical difficulties will constrain and delay any take-up of this option. Indeed, without some governmentled initiative it seems unlikely that this will be a serious option in the foreseeable future.

Demand will be a result of regional bulk and liquid commodity production with limited transit flows between Asia and Northern Europe.

PORT IMPLICATIONS Proposals have been brought forward for the establishment of significant capacity in northern Norway and Russia for hub ports that could link putative NSR Asian container services to various north-European ports by means of feeders. On paper, the economics make some sense, although these advantages have been eroded in recent years as costs on Suez routes have fallen as a result of improved scale economies.

For port developers the real opportunities will lie in the development of facilities to service the local LNG production facilities and to facilitate the transit of bulk cargoes via the north. It is in these sectors that near term future expansion can be anticipated.

8 Figure 2 – Comparative container shipping costs

THE REAL POTENTIAL AND TIMEFRAME There are clear advantages for some types of commercial shipping via the NSR, but these advantages are focused on

For the latest news and analysis go to www.portstrategy.com/news101

JULY/AUGUST 2021 | 21

SOUTH EAST ASIA: GATEWAY PORT DEVELOPMENT

READY, WILLING AND ABLE? With more manufacturing shifting from China to South East Asia, AJ Keyes assesses the impact on port requirements in Thailand, Vietnam and Cambodia

8 Figure 1: Overview of South East Asia Region

China has been the biggest exporter on a global basis since 2009, with hundreds of millions of its workers manufacturing and producing goods for shipment throughout the world. As the world’s most populous country, with 1.4 billion people, China possesses a massive low-cost labour force that has played a major part in the globalisation of supply chains satisfying demand for cheaper products wordwide.

However, times are changing. The cost of doing business in China is rising, with higher labour costs making profits thinner, and recent trade and political issues with other key economies, notably the USA, resulting in the country’s stranglehold over the world’s manufacturing being disrupted.

Consequently, demand for production in South East Asian countries like Thailand, Vietnam and Cambodia is rising.

Yet, while China’s ports have developed over the past 20 years to keep pace with the country operating as the “world’s factory” a key question is will the shift of activity to these other developing countries be supported by sufficient terminal capacity and infrastructure?

22 | JULY/AUGUST 2021

BIG NAMES MAKING THE SHIFT There are a number of manufacturing companies that have shifted or are preparing to move from China to South East Asian countries. One highly notable name is Apple Inc., the multinational technology company.

In mid-2019, the UK’s Financial Times reported that Apple had already looked at the benefits of shifting up to 30 per cent of its production activities out of China and into countries in South East Asia, as part of a restructuring of supply chains.

So, this was already in place ahead of recent COVID-19 disruptions. As one terminal operating executive, who did not wish to be named, says: “It may be called restructuring, but it means reducing costs. China has become more expensive, whereas other locations, such as Vietnam and others in South East Asia are now cheaper and as such a more attractive proposition.”

Apple is not the only global brand adopting this strategy.

Well-known sportswear companies, Adidas and Nike, have also moved significant manufacturing activities involving

For the latest news and analysis go to www.portstrategy.com/news101

SOUTH EAST ASIA: GATEWAY PORT DEVELOPMENT clothing and footwear production out of China and into South East Asia, with Vietnam and Thailand the preferred options.

“LUCRATIVE” OPPORTUNITIES The decision (and publicity) generated as these globallyknown brands move manufacturing capacity, partially or wholly, out of China represents a strong statement about the viability of the country’s future manufacturing role compared to the increasing benefits of neighbouring locations in the South East Asian area.

Industry analyst, Dataand, confirms that the population throughout South East Asia continues to increase, rapidly and this combined with lower wages means that moving manufacturing activities from China to Vietnam, Thailand and Cambodia offers “lucrative” opportunities for cost reductions without any loss of quality of the output compared to China.

Moving forward, the company further expects the automotive, electronics and raw material-based product businesses to realise further shifts of activity out of China into South East Asia.

It is also evident that the goods manufactured are all typical of what is moving in containers from Asia to key markets in North America and North Europe, in particular.

So, what does this mean for ports in South East Asia and are they prepared for what the future holds if manufacturing activity continues to increase? To begin with, it is important to see how volumes at ports have grown, with containers handled a good proxy of import-export development.

The location of the main container ports in the region is shown in Figure 2. The facilities identified are based on import-export activity, with the major gateways in terms of throughput being Ho Chi Minh (in the south of Vietnam), Haiphong (in the north of Vietnam), Bangkok/Laem Chabang (Thailand) and, for Cambodia, Sihanoukville.

In terms of import-export container volumes (and excluding transshipment activity), there are several largescale ports in each country. For example, as Figure 3 shows, for Thailand the Bangkok/Laem Chabang port complex is dominant.

In 2015, this port area handled almost 7.0 million TEU, which continued to increase to 8.4 million TEU by the end of 2019. However, the COVID-19 pandemic saw a reduction to 7.2 million TEU during 2020. To put this level of activity into perspective, the other (minor) ports in the country handled around 265,000 TEU of import-export activity in 2020.

By comparison, Ho Chi Minh City terminal facilities in Vietnam recorded almost 6.7 million TEU during 2020, representing strong growth on the 2015 total of 3.9 million TEU, equal to 11.3 per cent per annum over this assessment period.

On the basis of the container volumes handled by the selected ports in South East Asia, there are strong increases in throughput from Vietnam, which is indicative of the trend of greater manufacturing of items typically shipped via containers and to consumer markets in North America and North Europe.

Strong growth has also occurred in the northern Vietnam port of Haiphong with an annual increase of 9.8 per cent recorded between 2015 and 2020, entailing throughput rising from 1.6 million TEU (2015) to 2.6 million TEU (2020).

As a result, ports in Vietnam have seen the collective 2015 total of 5.7 million TEU increase to reach 9.6 million TEU by the end of 2020 – equivalent to annual growth of 10.9 per cent per annum over this assessment period.

There was also no drop in 2020 as a result of the impact of COVID-19, with volumes handled by the country’s ports seeing an improvement last year of 6.9 per cent over 2019.

Cambodia’s container ports are much smaller in terms of throughput compared to the main facilities in both Thailand and Vietnam. The largest port in the country, Sihanoukville,

has seen annual growth in the 2015 to 2020 period, rising from around 430,000 TEU to 648,000 TEU, which is equal to growth of 8.5 per cent per annum.

However, the total for 2020 was down on the throughput recorded for 2019 by -1.4 per cent, primarily due to weaker intra-Asian activity caused by the negative effects of COVID-19.

There is a requirement for major ports throughout South East Asia to offer sufficient infrastructure to keep pace with demand. The base question is, therefore, are the ports in question ready, willing and able to meet this challenge? The following article takes a close look at the state of readiness of gateway ports in Thailand, Vietnam and Cambodia.

8 Figure 2: Principal container port gateways in Thailand, Vietnam and Cambodia

8 Figure 3: Import-Export Container Volumes at Select Ports in South East Asia, 2015-2020

Note: Volumes are based on import-export activity only and shown in ‘000 TEU Source: Dataand

For the latest news and analysis go to www.portstrategy.com/news101

JULY/AUGUST 2021 | 23

SOUTH EAST ASIA: GATEWAY PORT DEVELOPMENT

ARE NEW CONTENDERS READY? Supporting high-volume manufacturing requires sufficient and efficient port capacity – just how ready are Thailand, Vietnam and Cambodia to facilitate a shift? A J Keyes takes a detailed look THAILAND Laem Chabang Gearing Up While the port of Klong Toey, Bangkok was the traditional port of entry for accessing Thailand, as a city port the need to build more modern, better-located deep-water facilities resulted in the development of Laem Chabang, some 130km to the south of the country’s capital.

As Table 1 shows, global terminal operating companies and major shipping lines have taken a strong interest in accessing facilities to serve Thailand through Laem Chabang.

Unsurprisingly, the Asian-based port operators, Hutchison Ports and PSA International, have several terminal stakes, largely through taking a share in an operating company.

At the same time, several Asian-based shipping lines also have a presence, with Mitsui OSK Lines (MOL), NYK Line and Evergreen all present.

Hutchison Ports has largescale investment plans at Laem Chabang. In January 2019, the company inaugurated Phase I of its Terminal D operation, which utilises remote-control quay and yard cranes. This project is part of a longer-term multiphase development which aims to (eventually) increase total container capacity in Laem Chabang to 18 million TEU. It will include further capacity coming on-line in 2024 and again in 2030, as part of the Terminal E and Terminal F projects.

In support of the further development at Laem Chabang, the Port Authority of Thailand (PAT) has plans to complete a largescale dredging project to cater for larger and more frequent vessels, as Vice Admiral Kamolsak Promprayoon, Director-General, PAT, explained in Q1 2021. “The project will cover the dredging of two ship basins and a fairway, which

will remove excessive soil and maintain the level of aboveground water within the safety standard. Furthermore, it will ensure that large container ships can dock with no problem and hopefully will attract more ships to use the port to its fullest capacity,” he said. The project is expected to take around one-year to complete.

VIETNAM Growth but challenges According to the Vietnam Port Association (VPA) there are officially 320 ports in the country, along 1900 miles of coastline, with up to 80 per cent of container imports and exports actually moving through smaller facilities.

A major issue in Vietnam is that the quality of infrastructure can vary considerably between its three regions in the north, central and south of Vietnam. However, continued manufacturing growth in the past 10 years – and especially the most recent five-year period – has emphasised the requirement for further investment in port and supply-chain infrastructure to keep pace with demand but also to help reduce logistics costs for users and shippers.

This position remains and highlights the challenges faced.

Yet such issues have not so far prevented major terminal operators and shipping lines from investing in the country, as Table 1 shows, with a wide range of major companies heavily involved.

North Vietnam – Going Deep Deep-water, largescale facilities in the north of country have been limited, until mid-2018 when Haiphong International

Terminal

Interests

Stake

Capacity in ‘000 TEU

Laem Chabang International Container Terminal (LCICT)

DP World

34.5%

1,800

CMA CGM (via APL)

14.5%

Evergreen

51.0%

Mitsui OSK Lines (MOL)

49.0%

APM Terminals*

35.0%

Laem Chabang Terminal B2 / Evergreen Terminal

Laem Chabang Container Terminal 1 (LCB1)

700

PSA International

40% in ESCO

APM Terminals via LCB1 share

90.0% (LCB1) **

900

TIPS Co Ltd

Mitsui OSK Lines (MOL)

24.4%

1,000

Hutchison Ports

87.5%

400

Hutchison Laem Chabang Terminal (HLT) / Terminal A3

80.0%

400

Hutchison Ports Thailand (Terminal C1/C2)

80.0%

2,500

Hutchison Ports Thailand (Terminal D)

80.0%

1,200

50.0% in operating company

600

Eastern Sea Laem Chabang Terminal Co Ltd (ESCO) / Terminal B3

24 | JULY/AUGUST 2021

PSA International

* = ESCO (40%), Bangkok Modern Terminal (25%) ** = Bangkok Modern Terminal (10%) Source: Terminal operators, port, Dataand

1,100

LCMT Co Ltd

Thai Laem Chabang Terminal Co Ltd (TLT) / Terminal A2

8 Table 1: Container Terminal Facilities at Laem Chabang

For the latest news and analysis go to www.portstrategy.com/news101

SOUTH EAST ASIA: GATEWAY PORT DEVELOPMENT Container Terminal (HICT) commenced operations, with the aim of reducing the need for transshipment to/from the country and allowing larger ships direct access.

The facility has both MOL and Wan Hai Lines as stakeholders, with the major share of 51 per cent retained by Vietnam-based Saigon Newport Company.

The newly-developed port was built with the aim of supporting the growing electronics, automobiles and machinery manufacturing undertaken at the nearby industrial zone.

However, despite the facility growing its volumes to around 500,000 TEU in 2020, this is still less than a 50 per cent utilisation, despite Haiphong handling over 2.5 million TEU in total – indicating that the smaller, older facilities are still attracting high volumes of container demand.

Central Vietnam – Minor Ports Dominate In central Vietnam almost all ports are very small facilities with limited water depth and infrastructure.

The largest container handing port is Da Nang, which sees the majority of the traffic in the central region. However, in 2020 container traffic was only 201,800 TEU, according to Dataand, meaning that volumes were still very small compared to the bigger ports where major terminal operators and shipping lines are investing.

However, Central Vietnam is an area seeing its manufacturing infrastructure develop, with the focus firmly on high-tech industries. This is the driving force behind the development of Lien Chieu Port. Current initiatives from local authorities include identifying suitable sites and investment initiatives, along with developing and operating terminals.

South Vietnam – Ho Chi Minh City Important The Ho Chi Minh City area includes a network of ports and terminals around Saigon. Collectively, these facilities comprise one of the largest ports in the ASEAN area (after Singapore, Port Klang, Port Tanjung Pelepas and Laem Chabang).

The importance of Ho Chi Minh City ports can be seen when noted that it accounts for around 70 per cent of the total throughput of all of Vietnam’s ports.

The Cai Mep-Thi Via Port (Cai Mep) is a deep-water port located around 80km south of Ho Chi Minh City, offering deep water and modern container handling infrastructure.

The port facilities focus on serving the major production centres of the Dong Nai and Binh Duong areas, with onward shipment to North America and North Europe.

In addition, CMA CGM has a stake in VICT (since its acquisition of APL) and DP World has developed Saigon Premier Container Terminal, although the operation offers a limited container capacity of 500,000TEU per annum as it continues to focus primarily on ro-ro traffic.

Vietnam Challenges The major challenge for the container port industry in Vietnam is that a number of smaller ports are still attracting volumes that could be centralised in the more modern facilities, able to receive larger ships. This leads to regular congestion and delays, with containers still moving by feeder to regional transshipment hubs.

Local press reports in Vietnam recently confirmed how “Cat Lai is preferred over Cai Mep despite the latter being a deep water port” and as a result of transhipping through Cat Lai there are “delays and increased costs of around 30 percent” while roads regularly see gridlock.

In 2020, the Department of Transport reaffirmed an intention to continue to develop port facilities on the outskirts of Ho Chi Minh City. Since 2013, the City and provinces of Dong Nai and

Ba Ria-Vung Tau have refused to license construction of any new ports or expansion to existing facilities.

There is also the reality that road and rail infrastructure is not keeping pace with economic growth in many areas, with a lack of developed roads and rail network simply pushing cargo onto already congested roads. Marine facilities at Cat Lai, for example, reportedly see 16,000-17,000 trucks on a daily basis, making it a hotspot for congestion.

The Ministry of Transport has known plans to invest between US$6 billion and $8 billion by 2030 in the next phase of port development, as part of a long-term plan for 2050. It will be needed.

8 Laem Chabang has long-term growth plans but needed government caps to stop Bangkok being used

CAMBODIA Joining The Race There are a limited number of ports in Cambodia, with the two main facilities being Sihanoukville and Phnom Penh.

Phnom Penh is a river port, located around 330km from the mouth of the Mekong. Although it serves around 150 ships per annum, container traffic is around 200,000TEU annually.

That leaves Sihanoukville, located in the Bay of Kompong Som, as Cambodia’s principal container option for entry and exit for goods being manufactured in the country.

This port has old and limited infrastructure, although it still handled around 650,000TEU in 2020 – a similar figure to 2019. There are, however, plans to address the situation, as Sun Chanthol, Minister of Public Works and Transport explained in Q3 2020 at the Ministry’s annual conference.

“For the Sihanoukville Autonomous Port, we will build a new container terminal with a depth of 14.5m next year in order to accommodate the larger vessels travelling in the AsiaPacific region.”

The Minister added that work on the new container terminal will be commencing during 2021, with operations slated to commence in 2024, at a cost of around US$200 million. The investment is expected to add two terminals, with each facility offering 450,000TEU per annum of new capacity.

This additional capacity is needed in Cambodia. Even with a total of 900,000TEU and 14.5m draft, with current volumes already near 700,000TEU and the new terminals up to three years away, the new capacity cannot come quickly enough at Sihanoukville.

NOTE: The position of Malaysia, Singapore and the Philippines will be considered under a Part 2 review of South East Asia

For the latest news and analysis go to www.portstrategy.com/news101

JULY/AUGUST 2021 | 25

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SUSTAINABLE FINANCE

WHAT PRICE SUSTAINABILITY? How green is your money – or someone else’s? Felicity Landon analyses the push for sustainability in loans, finance and investments

8 ABP innovative in the field of sustainable finance, signalling the shape of things to come

Finance always came with strings attached. Today, the strings are increasingly ‘green’ or, more broadly, sustainable. As concern for the environment reaches into every area of business and industry, so the expectations around sustainability are taking centre stage.

The past few months have seen a series of announcements around sustainable loans, finance and investments in the ports and shipping world, from the news that Australia’s Port of Newcastle has secured A$515m in sustainability-linked loans to COSCO Shipping Ports announcing the launch of its green finance framework.

As Malin Högberg, Director Corporate Legal at the Swedish Club, says in the P&I club’s annual report, many shipping companies are voluntarily committed to their environmental, social and corporate governance (ESG) approach, but the industry is also seeing pressure from financial institutions and other business partners with initiatives such as the Poseidon Principles and the Sea Cargo Charter.

“People want to invest in an organisation that is sustainable and committed and takes responsibility,” she says. “As a Club, we have to be more transparent about the ESG risks we see and how we work to limit that impact. We have to respond to more stringent laws for financial reporting. At the same time, shipowners are asking what their suppliers are doing in the area, and that – of course – includes us. We have many board members who are passionate on this topic, so there is a lot of engagement.”

In May, the Geneva-based World Association of PPP Units & Professionals (WAPPP) announced that it had established a Port Chapter to address the challenges of public-private partnerships in the port sector. Among its aims – to support the development of new port projects in accordance with the United Nations Sustainable Development Goals.

PPP ESG CRITERIA The trend towards sustainable finance is accelerating, says Erik Wehl, who has been working in the ports sector for 20 years and is chairing the chapter’s steering committee.

“Professionals and institutions operating in the PPP field are increasingly expressing concern about the environment, about the impact of their actions, and generally about their social responsibility,” he says. “These concerns are embodied in the 2030 Agenda for Sustainable Development. Structuring projects with the ESG best practice criteria in mind can actually help PPP projects tap into as-yet not fully utilised financing pools.”

Long-term investors, such as mutual funds, pension funds, insurance companies and sovereign wealth funds, own the vast majority of stock worldwide – and are increasingly aware of sustainability and long-term performance, says Wehl.

“Multilateral development banks have typically insisted on PPP projects meeting certain environmental and social conditions in order to qualify for financing, but they have sometimes disregarded the governance side. Their excuse is usually that the project is good for the people, regardless; and in some cases, especially in middle income countries, the availability of their financing, coupled sometimes with their political influence, have made it unnecessary for projects to strive to get private or capital market financing.”

Governments also play a role, albeit they may not yet have fully internalised PPP as a means to deliver on the SDGs and to enhance the ESG dimensions, he says. “PPP guidelines are, for example, designed to deliver value for money, which is, of course, important; however, the environmental, social and governance aspects are usually missing.”

This, he says, is largely due to two main elements: first, political decision-makers who want the projects put out for

For the latest news and analysis go to www.portstrategy.com/news101

JULY/AUGUST 2021 | 27

SUSTAINABLE FINANCE

‘‘

As part of the deal, a discount is offered to ABP on its hedging rate… tender as quickly as possible to fulfil political promises, thereby leaving no time for proper environmental and social impact studies as part of project design and preparation, or for interaction with rating agencies to get projects rated; and second, governments frequently lack the funding necessary for proper project preparation.

Wehl says the €300m sustainability-linked credit facility signed by the Port of Rotterdam in 2019 was the first such green facility for a major European port. The pricing is linked to sustainability indicators, “which reflects the borrower’s key sustainability initiatives; the port aims to be emission-free by 2050,” he says.

He also highlights the very recent example of Aviva Investors completing an ESG-linked interest rate swap with BNP Paribas, which has been provided to Associated British Ports. “As part of the deal, a discount is offered to ABP on its hedging rate, provided it meets certain ESG KPIs, including a significant reduction in CO2 emissions by 2030,” he says. “The transaction is also interesting in the sense that it highlights lenders’ commitment to innovating in sustainability-linked finance for port operators and other clients.”

When the ABP deal was announced, Matthew Ponsonby, Head of Global Banking at BNP Paribas UK, said: “Incentivising the net zero transition through finance can be a powerful

mechanism to accelerate both the corporate and investor decarbonisation trajectory. This innovative transaction in a major sector like UK transportation highlights the value of sustainable finance extending into the derivatives market, whilst also demonstrating the need to support corporates such as ABP in holistically integrating transition targets into their financing needs.”

The ABP deal comes with clear KPI requirements – but can the idea of ‘sustainable finance’ actually be a rather woolly term that does little more than tick boxes?

DEFINITION DELIBERATIONS Erik Wehl says sustainable finance generally refers to the process of taking ESG considerations into account when making investment decisions, leading to more long-term investments in sustainable economic activities and projects.

However: “It is right that various definitions – or labels – exist of what sustainable finance is, for example ‘green financing’ or ‘socially responsible investments’, etc. and different organisations, such as the European Union, OECD or even some multilateral development banks, apply their own definitions.”

WAPPP generally accepts the definition linking sustainable finance to ESGs, but advocates for the world of PPP to go beyond that to link it with the SDGs, he says.

“ESG tends to refer mainly to two out of the five Ps of the SDGs. These are: People, Planet, Peace, Prosperity and Partnership. We consider Peace and Prosperity-related dimensions to be of equal importance for sustainability, as are People and Planet.”

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INSIGHT FOR MARINE TECHNOLOGY PROFESSIONALS

18/06/2021 14:08

For the latest news and analysis go to www.portstrategy.com/news101

SUSTAINABLE FINANCE

Sustainable finance: experience and initiatives April 2021: SFL Corporation, the Bermuda-based ship owning and chartering company, placed US$150m in senior and unsecured sustainability-linked bonds due in May 2026.

May 2021: COSCO Shipping Ports launched its green finance framework; verified by Hong Kong Quality Assurance Agency. It will be a guideline in funding eligible green projects via green bonds or loans and regulating the use of proceeds, and facilitate future financing arrangements, said COSCO. The port operator said it would continue to support national policy by integrating green finance and sustainability into its business operations to further attract green finance investors.

5 Diana Shipping signed a $91m sustainability-linked loan facility with ABN AMRO Bank in May. Semiramis Paliou, CEO of the Greek shipping company, says: “The added sustainability aspect [of the agreement] is essential not only for the potential additional cost savings but more importantly because it is in line with the

company’s commitment towards its long-term sustainability goals.”

5 The Port of Newcastle must meet five sustainability-linked loan metrics within its A$515m loan agreement with National Australia Bank (NAB). Announced in May, it is Australia’s first sustainability-linked financing by a seaport and also the first in Australia to include a modern slavery assessment metric applying to all of its suppliers. The other four metrics focus on emissions reduction, mental health first aid, diversity and inclusion, and achieving certified recognition against the NSW Government Sustainability Advantage Scheme.

NAB says the loans incentivise the port to hit targets across a range of social and environmental metrics by offering lower margins of debt.

5 The new WAPPP Port Chapter is committed to supporting the development of new port projects in accordance with the UN’s SDGs. “It is important to us that port PPP projects are being implemented in the right way,” says Erik Wehl. There needs to be a fair

For the latest news and analysis go to www.portstrategy.com/news101

benefit case and balanced risk sharing between the public and private party, and it also means that port PPP projects should be implemented in accordance with the SDGs, he explains.

5 The UN Economic Council of Europe has spearheaded the development of a ‘People-first PPP’, which takes the SDGs into consideration for PPP projects. An evaluation tool has been developed, called PIERS (People-first Infrastructure Evaluation and Rating System), which measures a PPP project according to: access and equity; economic effectiveness and fiscal sustainability; replicability; environmental sustainability and resilience; and stakeholder engagement measured both quantitatively and qualitatively.

“In this way, the SDGs become concrete and operational in the context of port PPP developments,” says Wehl. “WAPPP members have been involved in the development of this tool and WAPPP is promoting it, not least for PPP projects in less developed countries or regions.”

JULY/AUGUST 2021 | 29

PORT DECARBONISATION

COST, UNCERTAINTY, CHANGE… Decarbonisation is advancing in UK ports but there are funding, cost and other key issues to overcome. Felicity Landon reports

8 Passenger facilities at the port of Portsmouth are heated by thermal sea energy and cooled by the coastal breeze which is captured by wind catchers on the roof

Decarbonisation of ports is not going to be cheap – and ports face some significant barriers along the way, according to Mark Simmonds, Director of Policy and External Affairs at the British Ports Association (BPA).

Addressing a recent webinar, organised by BDB Pitmans, Simmonds outlined the work that ports are already doing, including investing in hybrid vessels, shore power, electric/ hybrid plant and machinery, and taking steps around operational efficiencies, standards and leadership.

All ports are different in their structure and their levels of vertical integration, and therefore they have varying levels of control over emissions in their harbours, said Simmonds. “They are also at different stages in their respective journeys towards decarbonisation. There is an incredible pace of change in the ports sector in the UK – things are moving really quickly.”

However, he said, there are a number of barriers.

“First, the market. It is unclear where the market will head – for example, future fuel for shipping. It is difficult to talk about decarbonising ports without talking about the main source of emissions, i.e. ships. But there are also issues around equipment. Ports tend to buy the higher end technical specifications, so heavier gear where electrification hasn’t necessarily proceeded as quickly as we would like. There are huge costs involved and the business case is usually a big barrier. I am not saying you can’t buy an electric reachstacker, but it is a lot more expensive. It is still a challenge for electric and hybrid to keep up with their diesel counterparts.”

The price of electricity in the UK is another barrier, he said.

The installation of shore power involves huge capital costs within the port and often the need for investment in the energy network outside the port gate, he explained. “The

30 | JULY/AUGUST 2021

cost of these kinds of schemes can vary widely but can be millions and millions of pounds. A lot of ports are looking very carefully at shore power but these capital costs remain a huge barrier to widespread adoption.”

Although electrification is going to be key to so much of the decarbonisation work required in ports, said Simmonds, “I am not convinced the government is on top of that or those responsible for planning the energy system are.”

The Department for Transport has estimated that port demand for electricity will be ten to 200 times more in 2050 – “obviously a huge spectrum, but we are concerned that it is not being accounted for in future scenarios.”

SUPPORT PRIORITIES Simmonds called for support to overcome the barriers to emissions reduction. “Decarbonisation is not going to be cheap. We see the primary role of government as making sure the costs for this fall in the right place – not too heavily on one part of the chain, as well as help in demonstrating new technologies and investing in innovation and research.”

The BPA wants a green maritime fund which is not just for innovation, he said. “The industry is proud of being independent of government – but coming back to shore power, there isn’t a shore power scheme anywhere in the world that has been done without some level of public investment.”

More broadly, he said, the BPA wants to see an energy system that supports maritime ambitions; a regulatory environment that provides certainty for low-carbon investments; clear, technology-neutral indication of direction for the industry; and international leadership at the IMO and other organisations.

For the latest news and analysis go to www.portstrategy.com/news101

PORT DECARBONISATION

‘‘

UK port demand for electricity will be ten to 200 times more in 2050 Ports tend to be at the edges of the energy network and sometimes struggle to get the energy they need, he pointed out. “There is a big opportunity where they are becoming hubs for renewable energy – there is a lot of work to be done to make sure we get the energy we need. The government must recognise that moving freight by water is still by far the most efficient way to do it, and must be careful not to disincentivise that and move freight back on to roads or even air freight.”

The speakers at the webinar, ‘Decarbonising ports – the route to net zero’, considered the challenges and opportunities faced by ports and port users in implementing the measures needed to decarbonise by 2050.

Chairing the session, Richard Marsh, partner at BDB Pitmans, noted that emissions targets and legislation had the potential to impact on consenting of major port infrastructure.

Developers would need to demonstrate that any new development of a port and the consequence of carbon emissions would not compromise the UK target, he warned.

“There is an urgent need for ports and port users to continue decarbonising their operations as soon as possible. There have been some positive steps by the (UK) government in terms of incentivisation, but they are modest.”

Caroline Price, Green Ports Director at Royal HaskoninDHV, said decarbonisation of ports is a ‘whole site issue’, whatever the port operating model might be. “The land estate, hinterland connections, marine side and port operations and everyone involved has the responsibility to engage in this,” she said.

For the majority of ports, it is the landside operations where most emissions are generated – for example, in cargo handling and storage areas, said Price. “Diesel-powered plant is still a really important part of yard equipment.”

Reductions in emissions are linked to technology and also to people, she said – “around the way that people use that technology and interact with it, for efficiency and optimisation”.

“Often, especially when we are talking about funding from government, a lot is focused on innovation and big ticket items. But a fundamental part of decarbonisation is about optimising the energy and equipment you already use.”

Among the challenges she noted: the timescales for availability and delivery of large pieces of kit – sometimes up to two years; policy constraints; how to bring in, handle and store more energy, and how to deal with peaks and troughs in demand; and the physical requirements in terms of space.

With the rapid shift to electric power for terminal equipment, but also the use of alternative fuels and power, from biofuels to solar power, uncertainty is another concern.

“The pace of change is incredible. There is genuine concern about the redundancy of assets of the technology changes within the lifetime you are looking for. There is still very little standardisation, and it is very difficult to switch between brands, right down to the software level,” said Price.

FRONT LINE EXPERIENCE As a relatively small shipping company, Red Funnel faces challenges around timing and standardisation, said Leanna Lakes, Operations Director of the Isle of Wight ferry operator.

“Any investment we need represents a significant cost for us – so it is looking at a replacement strategy but at the same pace as the industry, not ahead of the curve but making sure we have things that are tried and tested,” she said.

Previous environmental strategies at Red Funnel have focused on ‘small things that make a big difference’, she said – for example, a biofuel trial was run on one ship, but there were issues of availability for the whole fleet. The company has also focused on reducing plastics, air pollution and waste, recycling, energy reduction and sustainability.

“We are looking to the next phase of our environmental strategy, around the Clean Maritime Plan, and would be very keen now to look to our vessels’ propulsion, which is the biggest opportunity to drive down carbon emissions,” said Lakes.

Red Funnel’s vessels, which run between Southampton and the Isle of Wight, currently burn 8,500 tonnes of fuel (low-sulphur diesel) a year, she said. “We are due to replace our three ro-pax vessels in five to ten years, and the biggest challenge is what do we replace them with? As a small operator it is quite a risk to go out on your own and try new technology.”

You cannot manage what you do not measure, said Jerry Clarke, Senior Project Manager and Marine Pilot at Portsmouth Port, as he outlined the port’s efforts to reduce emissions. “We are a busy port and have to become more efficient, and that is part of decarbonisation. We used Defra guidance for measuring emissions. Where do I start measuring carbon being pumped out from ships from Africa?

From 10 miles out where the pilots board? I chose from the fairway buoy, about 4.5 miles to port.”

CO2 emissions at Portsmouth increased from 50,000 tonnes in 2018 to 60,000 tonnes in 2019: that, he said, was because there were 844 more ship calls. “It is what ports do – they encourage trade, increase employment and increase economic activity in the area.”

The port, which is owned by the city council, has installed bespoke cabinets with air quality sensors. Positive developments have included the £9m Linkspan 4, built with £500,000 of EU Interreg funding for maximum sustainability; the use of LNG by Brittany Ferries; installation of intelligent storage and distribution of energy; maximum renewable energy production, including a massive solar array being installed; and the development of energy storage capacity, said Clarke.

The final speaker was Andy Vickers, Business Development Manager, Vattenfall Network Solutions. He described electrification as a key enabler for port decarbonisation and highlighted the solutions that are needed to cope with local grid capacity issues, including private networks and smart grids.

For the latest news and analysis go to www.portstrategy.com/news101

8 Kalmar commenced trials of an electric reach stacker design in 2019, but how competitive are such designs in cost terms?

JULY/AUGUST 2021 | 31

DIESEL TO ELECTRIC

REDUCE – PRODUCE – PROCURE How do you make the switch from diesel to electric? Drawing on UK experience, technology company Siemens highlights a proven approach to electrification and decarbonisation*

8 The Siemens route to electrification and decarbonisation is via a three-point plan: Reduce, Produce, Procure

It’s time to drop diesel and go for electric – there aren’t many port operators that would disagree with that. The decarbonisation agenda is pushing a revolution in the ports and maritime sector and there are other drivers too, such as the ending of the UK’s red diesel rebate, something that will more than double the cost of the diesel traditionally used in ports.

But how best to make the switch when all your port equipment is diesel powered? As with so many challenges, if you wanted the easiest path to success, you might not have chosen to start from here.

Many ports have tended to grow in a piecemeal way over the years – extend the yard a bit, add a berth, buy a few more terminal tractors. Some ports have access to plenty of power and are unconstrained when it comes to electrification.

Others may be at the end of a peninsular without the power availability to electrify everything without difficulty.

In 1891, the first electric rotating crane went into operation on the Petersenkai wharf at the port in Hamburg. The crane had been built by the Hamburg firm Nagel & Kaemp, but the electrical equipment came from Siemens & Halske. It had a load-lifting capacity of two and a half metric tons and could hoist loads at a meter per second. The extremely efficient drive recovered electrical energy as heavy loads were being lowered and stored it in an accumulator battery. After some initial problems, the unit worked well for more than three decades – see picture top right. *This article is authored by Lynsey Jeffers, Siemens Ports & Airports Sector Lead and Graham Foster, Siemens UK, Head of Marine and Defence

32 | JULY/AUGUST 2021

In all cases, it’s quite likely that a port’s electrical infrastructure has been added to, adapted, and modified here and there over the years. Siemens is used to coming across an eclectic mix of obsolete technology scattered throughout a facility.

Nevertheless, we all have to work with what we have – and it’s important to take a step back, plan carefully and take a holistic approach.

REDUCE – PRODUCE - PROCURE When we talk to clients about electrification and decarbonising their operations, we take them along a threepoint plan: reduce, produce, procure.

In an ideal world, you would look at a rubber tyred gantry crane, remove the diesel element, install a cable reel system, connect to a larger power infrastructure and be fully electric.

However, the first step can be to optimise and reduce your reliance on carbon-emitting technology. We always look at energy efficiencies that can be achieved, including through retrofitting and refurbishing to make equipment more efficient and resilient. If you’re looking to reduce cost and carbon, the first step is to use less, so we start by optimising a port’s existing infrastructure and make the most of the assets they have.

As an initial step, you can use technology to optimise a diesel engine’s performance – effectively making it a ‘smarter’ operator, reducing fuel consumption and emissions.

The creation of a digital twin can be invaluable, enabling you to model operations in the port and pinpoint where the logistics operation can be more efficient – simulating improvements and, by their nature, reducing diesel consumption.

For the latest news and analysis go to www.portstrategy.com/news101

DIESEL TO ELECTRIC

The ending of the red diesel rebate in the UK next April means some users will face a doubling in the price of diesel.

We’re talking about larger ports potentially paying out several extra million pounds a year, so finding efficiencies in existing hardware could save a lot of money.

On the journey towards electrification, another good interim measure is switching to biodiesel.

Then it’s about looking at what the port can ‘produce’ onsite; does the port have space to install onshore wind turbines or solar panels and some battery storage to accompany the onsite generation?

The port will still have a connection to the grid, but this step is about considering how it can meet some of its energy requirements itself. The final stage is of course to procure the remaining energy needed, but in the greenest way possible.

With a rapidly decarbonising grid in the UK, the electricity network is definitely heading in the right direction in the next 5 to 10 years making maximum use of large-scale off-shore wind and solar generation.

Think of this like the foundations of a complicated building.

These foundations can incorporate the use of renewables and other technologies such as green hydrogen and smart microgrids. Above all, Siemens would never tell a customer that one piece of technology will solve all their problems, nor would we pretend there are always easy, off-the-shelf answers.

What does the port want to achieve? The solution must be designed around that vision and those aspirations. At Siemens, we have set our own target to be net zero by 2030.

We have already reduced emissions at our buildings and sites by 50 per cent, so we know it’s possible and we know it can make companies more competitive.

In a recent port project, we supported retrofitting dieselpowered RTGs with their own ‘battery pack’ which could be charged from cable or busbar, enabling diesel free operation.

Once again, the holistic approach is vital. Electrify the crane, yes – but what about digital technology to provide a higher degree of safety and precision? How about ensuring that every individual piece of kit fits neatly into the most efficient broader picture possible?

It’s about knowing all parts of the operation and driving inefficiencies out – based on data and knowledge. If the unloading of a vessel is progressing faster than expected, the system should be able to adjust the size and frequency of equipment required to match. Once again, a digital twin can enable you to work out efficiency improvements.

Source: Siemens Historical Institute

‘‘

The creation of a digital twin can be invaluable…

The UK’s recently announced Freeports will be all about growth, jobs and prosperity, providing low-cost manufacturing options and attracting inward investment. Such developments would normally be expected to push up energy requirements, with consequently larger carbon footprints; however, to be in line with Net Zero targets, they will have to consider smart and renewable energy. All of this provides exciting opportunities for ports and their respective hinterlands.

Our role at Siemens is to guide port clients through the complexities and often bewildering choices to be made. We continually emphasise – electrification of a port is not only possible but can be transformational. It offers opportunities across the ecosystem, such as moving to microgrid networks.

It can deliver lower costs, new business opportunities and reduced emissions and noise. While port operators know they need to head this way, they don’t always appreciate what the tech’ can do for them, making Siemens many port operators first port of call.

8 Electrification has history: this interesting shot features the first electric rotating crane which went into operation in 1891 on the Petersenkai wharf, Port of Hamburg – electrical systems supplied by Siemens & Halske

8 Electrification of port facilities and equipment can be transformational

IT CAN BE TRANSFORMATIONAL There are some great examples of UK ports moving ahead with electrification; the Port of Tyne announced in January that it had completed a detailed modelling exercise and long-term analysis of its electricity network, enabling it to understand both current and future energy requirements as it looks to be carbon neutral by 2030 and all-electric by 2040.

The port is working through an innovative asset electrification programme involving the conversion of materials handling equipment from diesel to low-carbon electricity; this includes converting a Liebherr mobile harbour crane and Drax hoppers used for bulks from diesel to electric-powered.

The port says these two projects alone will reduce diesel consumption by 260,000 litres a year, eliminating 700 tonnes of CO2 emissions. The Port of Tyne has also invested in a new fleet of electric vehicles.

For the latest news and analysis go to www.portstrategy.com/news101

JULY/AUGUST 2021 | 33

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PORTSTRATEGY INSIGHT FOR PORT EXECUTIVES

PORT LINKAGE

ARICA RAILROAD READIES Truckers are fighting the opening of the railroad between La Paz, Bolivia and the port of Arica in northern Chile but it seems inevitable. Rob Ward reports After nearly 17 years of inactivity the vital railroad link between the Bolivian capital La Paz and the north Chilean port of Arica, is preparing to re-open for business but, after several road blockades by Bolivian truckers, it may have to wait a few more months.

Following the five-year bloody War of The Pacific, fought

by Chile against Bolivia and Peru from 1879 to 1884, Chile grabbed large slices of Bolivia and Peru, including Arica, as part of the spoils but in 1904 Santiago signed a Peace and Friendship Treaty with Bolivia and in it promised to keep open an outlet to the Pacific for Bolivia, via the Ferrocarril Arica- La Paz (FCALP), which the Chileans built as part of that pact.

That functioned well until 2001 but came to an end when severe storms and flooding destroyed much of the track. For a few years the operating company, AFALP, carried out some repairs and managed to get the service open sporadically, but eventually, in 2005, it went bust in terms of cargo although a passenger service, especially for tourists, continued sporadically.

Then, earlier this year, Terminal Portuaria Arica, the private company that operates the port of Arica under a 30-year concession worked with two railroad firms (Bolivia’s joint private-state run Ferroviaria Andina S.A. and Chilean state operated EFE),and conducted a detailed trial run to test the efficacy of the “allegedly moribund” railroad.

“And the system passed with flying colours,” Gabriel Tumani, General Manager, Terminal Portuaria Arica (TPA), told Port Strategy. “There were some rumours that much of the track was in a terrible state, etc, but that wasn’t really the case.”

Using two locomotives and 16 wagons, 422 tons of steel coils were delivered from Arica to their Bolivian destination but the wagons returned empty because of the trucker disturbances.

To coincide with an expected increase in box carryings TPA, which handled 167,321TEU in 2020 (down significantly, around 23%, from the 218,744TEU handled in 2019, due to COVID-19), is having advanced talks with a carrier in the WCSA to Far East trade to bring in a first-ever deep-sea liner service to Arica. All current services are feeders apart from Conosur, which is WCSA to ECSA. Of those container carryings Tumani estimates that around 70% of all cargo – around 150,000TEU annually when things are going well - either originates or is destined for Bolivia. In tonnage terms some 70% of TPA throughput is containerised with the other 30% being breakbulk, mostly steel to Bolivia and the south of Peru. Under the 1904 Peace Treaty Arica offers Bolivian shippers free storage for imports and 60 days free for exports but charges for loading and discharge, and for add-on services such as stripping and stuffing.

TRUCKER REBELLION However, faced with the possible future loss of cargo to rail, dozens of angry truck drivers in Bolivia, suffering from the severe reduction in business caused by the pandemic, blockaded roads around La Paz and forced the Bolivian government to promise not to re-open the historic railway; one of the world’s most strategic and precipitous going from sea level up to 13,000ft.

This led to Edgar Montano, Bolivian minister for Public Works, Services and Housing, bowing to pressure from powerful truckers’ unions, agreeing to halt the Arica-La Paz “trial runs”. Truckers had been blockading key highways to the west of La Paz. “That seemed to be the end of it,” said one La Paz based shipping agent, “but when we delved deeper into the details of the ‘deal’ with the truckers it became clear that government ministers had only promised to delay not scrap the re-opening.

“To scrap it entirely would be one of the most stupid examples of Shooting Yourself in the Foot as the main beneficiaries are the Bolivian people and the railroad has always operated as a loss maker for the Chilean companies and their government but they subsidise the operation so as to keep their promises made a century ago in the 1904 Peace Treaty; and make some extra money from cargo handling through Arica.

8 The railroad between La Paz, Bolivia and the north Chilean port of Arica is set to re-open

‘‘

We hope we can announce direct calls to Asia…and to Europe. That’s the target “Bolivia has suffered more than most during the COVID-19 pandemic but I think that once the economy picks up there will be enough cargo moves for everyone. Prior to the COVID -19 outbreak shippers of both containerised and bulk commodities were complaining there weren’t enough trucks to deal with cargo volumes, so the demand is there in normal times. I think there is a good chance it will re-open in some form or other before the end of this year.”

Indeed, Port Strategy enquiries discovered that other ministries in Bolivia had only agreed a temporary ban and on condition that “the logistics problems of national and international cargo traffic” are reviewed with the trucking sector to find “better balanced solutions”.

For the latest news and analysis go to www.portstrategy.com/news101

JULY/AUGUST 2021 | 35

PORT LINKAGE

The Arica to La Paz railway is one of the steepest, highest and most breathtaking in the world, rising from sea level to more than 4000 meters (13,123 feet) and it is also a key component of the Bolivian economy.

8 Highest point is General Lagos, amassing 4257 meters at 184km (from Arica) on the Chilean side, and the two border stations are Visviri in Chile and Charaña in Bolivia. The Chilean section runs for 205km and the Bolivian part for 208km.

8 As the railway passes from Arica to Viacha, at the end of the line, it runs in a north-easterly direction through some of the most inhospitable lands of both countries as it snakes through incredible landscapes of deserts and snowy volcanoes. The railway used to terminate in downtown La Paz but the rails were taken up in 1997 and so, since then, the railway extends only to Viacha, around 40km southwest of La Paz, offering extra local hauls.

8 It has been a lifeline for Bolivian shippers since it opened, back in 1913, and main Bolivian exports heading down the mountain have been copper, tin, lead, silver, wool and wood products. Heading up the mountain to the Altiplano main imports are: foodstuffs, chemical products, machine and car parts, electronic goods.

Shippers are still excited about the forthcoming option of a cheaper, more climate friendly transport mode to get their goods to and from La Paz, land-locked Bolivia’s largest and most important city with a metro population of 2.3 million (out of 11.5 million for the country), living at an altitude of 3650 meters (or 11,975 feet). Because La Paz (Bolivia’s de facto capital although Sucre holds many of the Judicial, constitutional and historical functions), lies in a bowl, the plateau above, and connected suburb/city of El Alto is located at 4061 meters or 13,325 feet) and hosts the world’s highest international airport, and is where the FCALP terminates.

Traditionally between 120,000TEU and 150,000TEU of cargo (or its equivalent in non-standardised boxes but stuffed/stripped in Arica) has been moved annually between Bolivia and Arica and shared between truck and train, but since the hiatus these volumes have been moved solely via trucking companies, predominantly Bolivian owned ones Truckers today charge around $1,200 per box each way from La Paz to Arica and back and the 308-mile (496 km) journey can take between 10 and 12 hours. By railroad (400 km on rail track and 40-km truck journey at the end) it takes around 30 to 36 hours.

Tumani reports that the rail operators and TPA have received innumerable requests for information, especially on pricing of the rail service, from shippers thereby “proving the demand is there”.

“We are proud to take that first step,” says an optimistic Tumani, “at a certain moment, whether it is three or six months or even a year, we are not sure, but it will definitely go ahead and we are prepared and preparing for that eventuality. Right now the railroad companies are working at setting prices that can be competitive and gauging when the volumes will recover.

As yet we do not know how much cheaper rail carriage will be but it will be cheaper, and there will be more long-term, stable contracts whereas truck prices are often spot.”

The TPA executive added that between 200 and 300 trucks per day ply their trade up/down the steep roads to the altiplano (high plain).

Arica has been a rapidly growing city in recent decades – with the population rising from around 20,000 in 1950 to

36 | JULY/AUGUST 2021

120,000 by the 1970s and up to 230,000 today – and is clearly of huge geo-political importance to the government in Santiago.

THREE GROWTH AREAS Tumani and TPA are acutely aware that Arica is a very strategic port city and so they are focussing on three main areas of expansion.

“We have three main markets,” explains Tumani. “Our main one is Bolivia, but on top of this we also have northern Chile, the areas in and around Arica and also in the south of Peru.

The latter is relatively new for us and began only in 2015 after we forged an alliance with Safra Tacna [a regional Peruvian body that aims to boost trade into the city].”

Tacna is 50 km across the border in Peru and the port of Ilo is just 30 km away, but Tumani believes Arica has better infrastructure.

With this in mind Tumani and the rest of the TPA commercial department are seeking to attract even more south Peruvian cargo by attracting more regular deep-sea liner calls, to add to the one quasi-long distance one, Conosur (operated by Maersk Line and Hapag Lloyd), between West Coast South America (Chile and Peru) and East Coast of South America (Argentina, Uruguay and Brazil) via the Magellan Straits. (Table 1: Liner Services Calling Arica).

To attract more cargo Arica has just completed a $6million dredging programme which has increased draft from 10 meters to 11.4 m, raising the size of the biggest boxships permitted from 8000TEU up to 11,000TEU. Shippers in southern Peru, located 250 km from Arica will still go to Callao, 1,000 km by truck, because there they can connect directly with Callao’s many direct services but, according to Tumani, some of these cargoes should start coming to Arica once it gets regular direct deep-sea calls.

“We hope we can announce direct calls to Asia - where there is demand for local reefer cargoes, especially avocadoes, fish and onions - and to Europe, by the end of this year,” declared Tumani. “That’s the target.”

But Arica is not just an important port for containerised and general cargo, it is also a key regional player in breakbulk, liquid bulk and ro-ro.

Eukor has run regular ro-ro services to Arica for years – often unloading cars and machinery for the local mining industries – and Wallenius Wilhelmsen, the Norwegian-Swedish shipping company, began a regular service to Arica in April of this year, switching from Iquique, due south from Arica.

As with containers, breakbulk tonnage also took a hit last year falling to just 71,981 tons after averaging around 220,000 tons for the previous five years. During the first four months of this year TPA handled 30,567 tons of breakbulk, down 50.7% compared to the 46,072 of 2020, before the COVID-19 pandemic hit Chile hard.

TPA currently has four regular container services 1. The Maersk Atacama service from San Vicente, in the south of Chile up to Panama, 2. MSC … Callao (Peru) to Arica and sometimes, with inducement, on to Coronel, in the south of Chile.

3. Maersk and Hapag Lloyd: Conosur service to ECSA Brazil and Argentina and turning south again in Rio de Janeiro.. via Magellan straits…

4. Cosco/CMA CGM… Polynesia service connecting Iquique, Callao and Arica All are weekly services apart from Polynesia (4), which is every 2 weeks.

All services are feeder services, apart from Conosur.

8 Table 1: Liner Services Calling Arica

Source: Port Strategy

For the latest news and analysis go to www.portstrategy.com/news101

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TERMINAL OPERATIONS: VBS

MAKE AN APPOINTMENT WITH VBS A number of parties suggest the full benefits and unfolding powers of the modern Vehicle Booking System are not fully recognised until post system implementation.

John Bensalhia reviews the innovative supply sector

8 More innovation is expected in the use of smartphones, apps and VBS – standardisation is also an issue

Norbert Klettner, Managing Director, RBS EMEA, says that a major benefit lies in the data delivered before trucks arrive. “Gate automation coupled with slot booking will drive gate efficiency because you can allocate the required resources much more efficiently. This,” he says, “is good for productivity as well as for a reduction of environmental impact. Matching equipment to a known workload delivers these and other benefits.”

Drivers today have the possibility to register themselves prior to the arrival at the terminal, minimising waiting time through a reduction of queuing time and completing other formalities associated with container pick-up/drop off.

“Systems nowadays are more and more integrated with Terminal Operating Systems (TOS)/Port Community Systems which facilitates efficient data interchange between parties involved with the operational process as well as other local interests,” explains Daniele Labate, DSP Team. “Also,” he elaborates, “terminal customers and trucking companies have more visibility of what is happening in a real-time manner, allowing bookings and planning of the next phases quickly.”

Jan Bossens, CEO, Camco Technologies, concurs that the main changes happening today are taking place upstream of terminal gates – the processes before gate access, typically involving truckers’ apps and vehicle booking systems (VBS).

“Truck appointment systems,” he notes, “allow upfront registration of bookings, increasing terminal efficiency on a broad scale.”

He too points out the linkage of such systems to TOS as a mainstream driver of terminal efficiency, citing many of the afore mentioned advantages but also the ability to flatten out peaks in terminal traffic and on the trucking company side the ability to achieve better fleet management, expedited truck turnround and for the driver less hassle overall.

38 | JULY/AUGUST 2021

Rok Štemberger of the Port of Koper, Slovenia, confirms the usefulness of VBS to flatten out traffic peaks and generally better handle high traffic flows. “In the Port of Koper,” he explains, “we are handling around 330.000 trucks annually and managing this traffic flow is very important for the internal logistics of the port, terminal productivity and to relieve the roads around the city. Our Vehicle Booking System (VBS) is an online platform, developed by Luka Koper, for making truck appointments, checking cargo status and scheduling plans, recording truck entries in the port and reviewing the validity of annual permits for port entry.”

SYSTEM EVOLUTION System supplier 1-Stop Connections, says that the very nature of what a port vehicle booking system (VBS) is, has evolved over the last few years. “Historically, a VBS is seen as an appointment or time slotting system – which couldn’t be further from what a true VBS is today. 1-Stop’s VBS,” the company explains, “has turned into a fully-fledged capacity management tool that matches terminal resources with landside demand and ultimately drives efficiencies across the Supply Chain. A true VBS,” 1-Stop emphasises, “is a solution that interconnects the entire Supply Chain from the Quay Line to a customer’s door by improving efficiency and creating more certainty.” The company further points out that vehicle booking systems have evolved to cover all cargo types, not just containers as they have typically been used for in the past.

1-Stop is another party to tick the boxes of VBS in terms of its ability to improve yard productivity, optimise yard planning, streamline gate processes, and even create paperless exchanges. It underlines, however: “The most significant benefit a VBS implementation creates is the ability

For the latest news and analysis go to www.portstrategy.com/news101

TERMINAL OPERATIONS: VBS to match a facility’s resources with the landside demand; this generates a higher asset utilisation and increases efficiencies across the entire Supply Chain while reducing costs.”

Also in terms of benefits, John Lund, Sales and Marketing Director (Global), Visy Oy, another system supplier, makes the point that: “A VBS is one of those tools that operators may not appreciate until they actually have it in use. On paper,” he suggests, “it may seem abstract, but in practical terms it is a critical part of operations.”

“For Visy,” he further notes, “the VBS is a module that can be added to our gate operating system (GOS) – with the two systems complementing each other very well. The VBS,” he points out, “provides an additional suite of access and area control tools to help operators save time and money on every transaction. It will allow operators to create scalable, repeatable, predictable, and ultimately more profitable operations,” he says.

SYSTEM DETAIL Explaining the Visy VBS in detail, Lund notes that it offers a wide variety of features. These include: booking and time slot allocation administration; a web page for customer booking and terminal visit management; seamless integration with Visy Access GOS, terminal operating systems and warehouse management systems plus editable booking monitors to automatically report exceptions such as terminal visits that are too slow. Mandatory data fields can be managed by administrators and there are no limits to the number of customers or users.

The Visy VBS also features an SMS/App messaging for truck drivers, such as created bookings and allocations or changes for time slots as well as dynamic list views of current bookings to be shown on info’ displays, tablets and mobile devices.

These views can typically be all trucks inside the terminal, waiting area or due for arrival within the next two hours.

SIMPLIFICATION - KPIs “The VBS provides benefits by automating (and therefore simplifying) a workflow,” says Lund. “Some of the benefits are obvious, some less so. The types of benefits one would expect from a VBS include: more predictable operations, the ability to make appropriate staffing requirements and increased visibility.” However, Lund adds that the Visy VBS also provides tools for measuring KPI’s such as truck turnaround times and creates alerts if a vehicle has spent too long on the terminal. “The ability to track KPI’s allows operators to measure and therefore, truly improve operations,” he says. “After all, if you can’t measure the changes to your operation, how do you know that you’re making improvements?”

The VBS, Lund continues, provides a scalable platform that collects and shares data with relevant parties such as terminal administrators, truck drivers, and cargo owners. “For example, we use SMS text messaging or an app to communicate with drivers in real-time about the status of their work order. Changes happen in terminal operations, so the platform allows operators to immediately notify drivers that a booking was created or that a time slot was allocated or even changed. Ultimately, we’re trying to save every party time on each transaction and ensure that the right assets are in the right place when they should be. It’s a natural extension of the gate operating system which in many ways is concerned with similar functionality but from a slightly different perspective,” he explains.

Bossens notes that an issue with today’s app technology is that port authorities can’t get various terminals on one common and single VBS and truckers app, which he says

“must be a nightmare for truckers frequenting different terminals.

“As an enabler of gateless gates, one expects a future,” he argues, “for BYD (Bring Your Own Device) instead of truck reception kiosks. This means that kiosks will be replaced with a ‘gate app’ on a smartphone. “Technically,” he elaborates, “it’s not a big challenge to extend the current truckers app, the problem is the security related procedures. Biometrics as fingerprint isn’t available on all smartphones, face recognition is an alternative but the main issue is that security procedures are running on a device not owned and controlled by the terminal.”

“We had RFID seal readers installed with some customers but we can’t speak yet of a real breakthrough, which is remarkable as RFID seals are not that more expensive than standard seals.”

8 A typical workflow presented in the Visy system

BUILDING FOR THE FUTURE Daniele Labate concludes that automation goes together with quality data. Knowing in advance the information about the traffic and peaks, container terminals can handle congestion proactively and smarter.

“The comparison between the received data and what is currently showing up at the gate triggers the next action into the gate process flow automatically. OCR recognition behaves as human eyes and identifies the physical information about the unit and its position as well as the truck related info.

Sensors and automatic weighbridge enrich the dataset with specific information on the weight and trailer composition.”

The Port of Koper along with other ports and terminals worldwide plans to build on what it has achieved to-date with its VBS. Rok Štemberger comments: “We plan to further digitalise all the processes to offer trucking companies, forwarders, agents and customs a complete paperless system. Our container terminal is currently in an advanced stage of this development,” he notes.

Meanwhile, VBS companies are also working on innovations.

“We’ll continue to develop new tools to make communication between stakeholders easier and faster,” says Lund. “We currently have an intuitive web interface and tools for mobile devices and tablets. The speed and accuracy of information exchange is critical in terminal operations and helps terminals differentiate themselves from one another. We’ll continue to look for new ways to make that happen for our customers.”

“There are endless opportunities for the future of the VBS,” suggests 1-Stop: “These include the prospect of using geofencing technology, smart apps, and even API/AOT/ Blockchain system integrations.”

“The more innovation with VBS, the more connected and stronger supply chain efficiencies will become for all parties and assets involved.”

For the latest news and analysis go to www.portstrategy.com/news101

JULY/AUGUST 2021 | 39

TERMINAL OPERATIONS: AUTO-GATES

NO STOPPING AUTO-GATES Container terminal gate automation is advancing in terms of take-up and system capabilities with further developments in the pipeline. John Bensalhia reviews progress

8 Camco cites the reducing cost of automated gate systems due to scale economies

“Whether it’s by land, rail or water, the number of container transactions is growing every year,” says Chantal Mooij of CERTUS Automation. “More trucks at the gate. Bigger ships at the quay. Terminals need to be prepared for these increasing numbers.”

Gate automation is a case of cause and effect. With growing numbers of trucks entering, terminals must be able to process this increasing volume. “An automated gate reduces or even entirely eliminates data input and/or task confirmations, and thereby increases the accuracy and speed of the transactions,” explains Mooij. “This naturally results in higher throughput at the gate compared with a manual system.”

Gate automation is common practice today for ports. Jan Bossens, CEO, Camco Technologies, says that while, once upon a time, this was only affordable to +400,000TEU/yr terminals, today Camco sells systems to 50,000TEU/yr terminals. “This is because of scale of economy. Thanks to a yearly production volume of more than 120 OCR portals, we could lower the price and even more importantly, the commissioning time. We learned,” he continues, “that costs (installation costs) made on location are difficult to budget as there are a lot of dependencies, decreasing installation time has an impact on costs.”

An example of gate technology for managing increasing cargo levels is at the Port Authority of New York and New Jersey (PANYNJ), USA. Container throughput at the PANYNJ rose for a consecutive ninth month to hit 18% above preCOVID levels in April 2021, accounting for 712,799TEU in that month alone. Against this background, PANYNJ and APM Terminals will invest in key areas including outbound gate infrastructure, digitalisation and technology.

The automation of a conventional gate process is normally straightforward and not least because it offers possibilities for step-by-step implementation. Daniele Labate, DSP Team, explains that an automated gate needs pre-announcements,

quality data and devices for detection and recognition. For installation, he notes that: “There are evaluations that need to be taken prior to the switch over to automation.” And that: “More automation will require specialised maintenance and services and improved IT infrastructure.

ABOVE 95 PER CENT Norbert Klettner, Managing Director, RBS EMEA, says that the level of real automation at the gate is driven by two key factors: the amount and quality of data available before the truck arrives at the gate and the reliability of the gate system including related Optical Character Reader (OCR) systems. “… you need,” he emphasises, “to reach way above 95% with a reliable process. This refers to the complete process of automation at the gate, not the OCR reading reliability of the cameras. If you are below that in your process, you will have too many manual handles and therefore, need to allocate too many resources.”

“Nowadays, container terminals are aiming more and more for safety, higher productivity and less congestion,” notes Labate. “Therefore, terminals are adopting automated solutions to meet higher and wider targets.”

Labate notes that in the past most of the gate process entailed human intervention for input, handling and monitoring. However, today: “The container terminal world is changing rapidly, introducing automation and remote monitoring and control for all different entry-points of the terminal facility as well as for yard handling and ancillary services.” Safety is a key driver and as Labate further points out automated gate systems allow humans to stay away from risky areas and continuously monitor the process remotely, also reducing the possibility for the drivers to behave wrongly; any exception or wrong action being signalled.

“With more trucks visiting a container terminal, the risk of incidents is also growing,” highlights Mooij. “Cameras that capture every truck detail, contribute to a safer work

For the latest news and analysis go to www.portstrategy.com/news101

JULY/AUGUST 2021 | 41

TERMINAL OPERATIONS: AUTO-GATES environment. At an automated gate, truck drivers can identify themselves without having to leave their cab. Staff members no longer have to stand in the lanes between the trucks, risking collisions and being exposed to harmful idling.”

TODAY’S DESIGN TRENDS Today’s trends in gate automation are progressive. Bossens says that some years ago, the hype in gate automation was about gateless gates, Bring Your Own Device (BYD), RFID seals and face recognition. This meant less hassle, no need for gate clerks with the main catalyst behind implementation being reduced costs.

Today, Bossens notes, the trend is away from the idea of gateless gates in accordance with heavier government regulations, stricter security and related entry and exit procedures in place.

“Theft and drugs are the main drivers for intensified control, but we see also requests for Under Vehicle Scanners (UVS), mainly at country border located terminals,” he says.

Data accuracy is a primary benefit of gate automation.

CERTUS’ Gate OCR system is said to capture every machine vision feature of each truck - licence plate registration, container codes, ISO codes, hazardous information and damages are claimed to be registered on a highly accurate basis.

Lightweight gate solutions are also available and growing in number. These function as an app for a truck driver or a gate clerk that facilitate more automated data input to the gate process. As Klettner explains: “This is certainly a good step to have more data pre-entered to the process and as an input to the Terminal Operating System (TOS), providing central control of the operations process.”

However, Klettner adds that a simple app does not facilitate a fully-fledged Gate Operating System (GOS) to comprehensively automate the process at the gate. “In case you have a big gate process with high numbers and also some pre-system delivering data such as a PCS, a full GOS solution is the better choice. If you have a lower volume and want to enable forwarders to do a bit more self-service at the gate, a mobile gate app is a good solution,” he states.

FUTURE DEVELOPMENT In the near future, Camco will introduce a new OCR portal that can be installed and made fully operational in just one day by use of a cloud connection.

Also forthcoming is a new kiosk concept based on Camco’s successful plug and play concept. “We see a new hype around Automatic Damage Inspection (ADI)” says Jan Bossens. “It’s normal,” he postulates, “that vendors are in

search of differentiation and customers are in search of increasing the ROI. Due to the increased possibilities of Artificial Intelligence (AI), a new battlefield opens. We are convinced there is a business case for ADI but we also inform our customers to stay realistic.”

Bossens considers that damage is a grey area. For example, there is an ISO classification system, but no objective metrics. So, with container terminals there is a focus on Structural Damage Detection (SDD), which immediately impacts operations and safety. “Other damage,” he elaborates, “like bumps, holes or dents are for post processing. The SDD technology we use is based on AI image recognition instead of laser scanners (which reduce the portal speed to 5km/hr due to their physical limitations.”

Klettner argues that going forward there has be more data connectivity between the gate related stakeholders from the forwarders to the truck drivers, ports and terminals as well as local government agencies. “The future of gate automation,” he states, “reaches further than the actual gate automation at the terminal level.”

Across the board, the consensus of opinion is that at a micro and macro level the standardisation of procedures necessitated by gate automation will progressively deliver clear benefits in terms of quality of terminal service, truck turnaround times and overall efficiency. As a corollary of this, the increasing adoption of container terminal gate automation is seen as a proven path to reducing the impact of human-related problems and/or disruption caused by third party events.

8 RBS identifies 95 per cent efficiency as the base line for a gate system to be designated as reliable and efficient

DCT GDANSK: TERMINAL 2b CASE STUDY JLT Mobile Computers has been involved in several gate automation projects, providing rugged terminals for self-service driver kiosks. A recent example is a gate optimisation project at DCT Gdansk S.A., Poland which was a joint effort involving JLT; gate automation specialist Visy Oy; and Finnish digital learning provider Context.

As part of its Terminal 2b expansion plan, DCT Gdańsk has successfully implemented an OCR system at its gates. This involved the introduction of totally automated gates that

42 | JULY/AUGUST 2021

use OCR cameras to note any containers arriving at the location. The process began in December 2017, but continued through to 2019, with extra adjustments and fine tuning made to the system. By December 2019, all container gate transactions were able to be carried out by the automated gates.

The introduction of the project has resulted in boosted safety and efficiency levels, as Jacek Grabowski, DCT Operations Director, explains: “The service is much faster. Before the implementation of the

OCR system, the drivers spent around 12 minutes at the gate complex to file all the necessary documents before entering the terminal. Now, this is reduced to less than a minute per truck. Moreover, it is completed without the driver leaving the truck.”

Cameron Thorpe, CEO, DCT Gdansk summarises: “Our gate is now more efficient, provides our customers with a better service and crucially its safer as the driver no-longer has to get out of the vehicle, reducing pedestrians in this busy area.”

For the latest news and analysis go to www.portstrategy.com/news101

PRODUCTS & SERVICES DIRECTORY

Gemini House Cambridgeshire Business Park, 1 Bartholomew’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

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A/S Cimbria Cimbria is a global leader in the conveying, drying, processing, sorting and storage of grains, seeds, food and bulk products. Cimbria designs, manufactures and services customized high-tech solutions, from stand-alone machines to large turnkey plants. Our broad experience ensures our clients the targeted advice and range of solutions they need to grow their business.

PACECO® CORP. World Headquarters 25503 Whitesell Street Hayward, CA 94545 Tel (510) 264-9288 email@pacecocorp.com www.pacecocorp.com

Specialist for pneumatic ship unloaders and mechanical ship loader. NEUERO follows the MADE IN GERMANY quality tradition.

Now with more than100 years of tradition in the manufacture of reliable and high-quality conveyor systems worldwide.

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

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Staubli_Directory Mar 2021.indd 1

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

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For the latest news and analysis go to www.portstrategy.com/news101

E LECTRIFICATION SOLUTIONS

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NEUERO Industrietechnik GmbH

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Over 60 years supporting Container Terminals in port operations: we create strategic ǁëŒƪėɆëŝĐɆļŝĉƎėëƖėɆƋƎŨǘƢëĈļŒļƢLjɆ ƢķƎŨƪİķɆƖŨŒļĐɆëŝĐɆƎėŒļëĈŒėɆ STS Portainer® and RTG Transtainer® cranes, services & Advanced Port Technologies.

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Cimbria Directory.indd 1

C ONNECTION SOLUTIONS

27/01/2021 11:29 Telestack Directory June 2021.indd 1

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

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

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7EB DELLNERDAMPERS SE

P4.1 e-chain® Energy chain with optional intelligent wear monitoring for double the service life, travels of up to 1.000 m, speeds of up to 10 m/s and fill weights of up to 50 kg/m.

Tel: +44 (0)2882 251100 Email: sales@telestack.com www.telestack.comw

Tel.: +49 2521 240 E-mail: info@beumer.com Web: www.beumer.com

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 Email: info@dellnerdampers.se

D REDGING

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

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 OMPONENTS

The BEUMER Group is an international leader in the manufacture of bulk material handling systems:

LASE Industrielle Lasertechnik GmbH

C RANE COMPONENTS

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.

C ARGO HANDLING SYSTEMS

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

Via Praimbole 38, 35010 Limena (PD) – Italy Tel: : +39 049 7663100 Fax: +39 049 8848006 Email: sales@bedeschi.com Web: www.bedeschi.com

B ULK HANDLING

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Bedeschi S.p.A

25/02/2021 15:49

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

RTGC electrification including positioning and data transmission making RTGC ready for Automation.

Westicker Str. 52, 59174 Kamen, Germany

Email: port-technology@vahle.de Web: www.vahle.com

JULY/AUGUST 2021 | 43

PRODUCTS & SERVICES DIRECTORY

&

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

TO

For more information visit: greenport.com/greenport Tel: +44 1329 825335 email: congress@greenport.com

Phone : +919727738429 E-mail : Info@irmome.com Website : www.irmome.com

I T PORT AUTOMATION

H ANDLING EQUIPMENT

G RABS

IRM Directory July-Aug 2021.indd 1 30/06/2021 14:24

01/02/2021 13:12 TT Club 09:15 Directory March 2021.indd 1 Greenport Congress Directory Filler.indd 1 01/03/2021

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

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

BLOK Container Systems Ltd BLOK cuts Shipping Line pollution: increases safety and productivity in Port • BLOK Spreader – lifts 4x40’ empties • BLOK Rig – automatic twistlocking • BLOK Trailer – 8 teu Tel: 00441926611700 enquiries@blokcontainersystems.com www.blokcontainersystems.com

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

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

Contact Tim Hills or Hannah Bolland +44 1329 825335 www.portstrategy.com

4F., No. 298, Yangguang St., NeiHu Dist., Taipei, Taiwan +886-2-8797-1778

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

We Keep Your Vital Business Moving!

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S HIP UPLOADERS

20/01/2021 10:50

Sany Europe GmbH

Sany Allee1 D-50181 Bedburg Tel: +49 2272 90531 100 Email: info@sanyeurope.com www.sanyeurope.com

Port Strategy Directory

19/05/2021 14:16

RuggON is here to offer high quality and future-proof one-stop rugged computing solutions, ranging from rugged vehicle-mount computers, mobile tablets and data terminals, to similarly durable data-capture accessories, for a safer and more efficient automated port and terminal operations from quay, yard, gate, and all the way to warehouses.

RuggON_Directory_40x58.indd 1

SANY offers reliable quality container handling trucks.

Benefit from the experience of over 4,000 reach stackers build over the last 12 years, with up to five year full machine warranty.

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CAMCO Technologies NV

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.

01/03/2021 14:40

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.

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Camco ID June 2021.indd 1

Orts GMBH Maschinenfabrik

IRMOME is the world’s most preferred offshore and marine rubber engineering products manufacturing company.

With products ranging from Marine fenders, Offshore installation aids to products for the Foundation of offshore wind.

Tel: +46 470 77 22 00 info@fogmaker.com www.fogmaker.com

Fogmaker Directory.indd 1

MARINE FENDERS

GREENPORT Cruise Congress

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F IRE SUPPRESSION SYSTEMS

Piraeus2021

Visy systems reduce VISY Oy expenses, optimize safety & security, and VISY takes pride solving via increase throughputin capacity operational problems,Our specialising process automation. singlein gate automation and system access platform gate operating control solutions in ports and and OCR solutions manage all terminals.

Their solutions cargo, assets & personnel streamline processes resulting movements via quay, rail or road in saving money and to keep operations moving. increasing productivity.

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Bruks Siwertell is a market-leading supplier of dry bulk handling and wood processing systems.

With thousands of installations worldwide, our machines handle your raw materials from forests, fields, quarries and mines, maintaining critical supply lines for manufacturers, mills, power plants and ports. www.bruks-siwertell.com sales@siwertell.com service@siwertell.com

Siwertell Directory - Ship Unloaders Category.indd 12/05/2020 14:12 1

44 | JULY/AUGUST 2021

For the latest news and analysis go to www.portstrategy.com/news101

PRODUCTS & SERVICES DIRECTORY

Solvo’s software solutions such as TOS or WMS help container and general cargo terminals take full care of their cargo handling processes and make sure the clients expectations are exceeded.

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

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

T RACTORS

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

Solvo Europe B.V.

T ERMINAL OPERATIONS SYSTEMS

S PREADERS

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

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

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

T ERMINAL OPERATIONS SYSTEMS

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

T ERMINAL OPERATIONS SYSTEMS

S IDELIFTER/SIDELOADER

Hammar Maskin AB

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

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

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

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POSTSCRIPT DARWIN’S CHINA OWNERSHIP UNDER REVIEW

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A review is underway…will it lead to the ousting of the port of Darwin’s Chinese owners?

46 | JULY/AUGUST 2021

The port of Darwin, Northern Territories, Australia has been sucked into the ongoing dispute between China and Australia.

The differences between the two countries first came to prominence in early 2018 when, concerned over rising Chinese influence, the Australian Federal Government announced tougher rules governing foreign buyers of agricultural land and electricity infrastructure.

The friction has grown since.

In March 2020 Australia brought in new rules to scrutinise foreign takeovers of Australian companies, after MPs in the Australian Parliament expressed concerns that companies impacted by the economic slowdown would become vulnerable to buyouts by state-owned enterprises in authoritarian regimes including China.

In May 2020 the situation further worsened when Australia called for an independent investigation into the initial coronavirus outbreak in China, with Prime Minister Scott Morrison suggesting that the World Health Organisation (WHO) needed tough “weapons inspector” powers to investigate the cause of the outbreak.

China has not taken this criticism passively – most notably it has discouraged purchases of thermal coal from Australia (for power station use). Australian thermal coal exports to China in 2020 dropped by 30 per cent from the previous year to a five-year low of 34.85 million tonnes, according to data from the Australian Bureau of Statistics. Similarly, coking coal exports to China (for steel production) have headed south as a result of the de facto ban.

Beyond coal, import restrictions have also been imposed by China on barley, beef and lamb, cotton, lobster, timber and other products.

Australia for its part, as indicated above, has been resolute in resisting this induced trade pressure from China. It has to a large extent found alternative markets for many of its products, although not always at the same healthy price levels enjoyed with China.

Another significant waypoint involving the ‘push back’ against China came in April this year when Australia’s Federal government used its new foreign veto laws to scrap the State of Victoria’s Belt and Road agreements with China, in what the Chinese embassy denounced as a “another unreasonable and provocative move”.

Marise Payne, Foreign Minister, Federal Government, said she would cancel those two deals, along with two older agreements between the Victorian government and Iranian and Syrian entities, because they were “inconsistent with Australia’s foreign policy or adverse to our foreign relations”.

It is fair to say, however, that it was widely felt by observers that China was the main focus of this action.

And following hot on the heels of this, in May,

8 Landbridge Australia has gone on record saying it: “acquired the lease to Darwin Port in good faith following a transparent process in 2015”

Peter Dutton, Defence Minister, Federal Government announced that his department is conducting a review into the 2015 agreement between the Northern Territories then Country Liberal Party (CLP) government and the Landbridge Group – the China based company that acquired the lease to Darwin Port in 2015.

POLITICAL PLAY While the Federal Government bills its port of Darwin review as security and defence driven – it is taking place against a backcloth of rising concern that China is using its Belt and Road Initiative (BRI) to gain economic and political influence. There is little doubt that substantial ‘political plays’ are in progress around the Darwin port issue.

The federal opposition has accused the Coalition government of “dragging its feet,” making the point that it had only acted after “six years of warnings.”

The federal Labour Party has also said that it has long raised concerns about the port of Darwin and such a “critical strategic asset for Australia… being under “effective foreign ownership.”

Michael Gunner, the current Northern Territories (NT) Chief Minister, Labour Party, was not in power at the time of the lease award but clearly also has a political take on things. He has been quoted in local media as saying: “I don’t believe the CLP, as government of the day, have ever apologised to Territorians, or Australians, for the decision to sell the port to foreign owners.”

He has also gone on record as saying he is, “very happy for the Australian Government to look at anything they want in relation to the 2015 sale by the CLP.” Generally, from across the range of political interests there can be seen to be a growing body of support for the review and the objective of returning the port of Darwin back to Australian ownership. If this does occur it will doubtless mark another significant downturn in China – Australia relations and of course it will spark an interesting discussion on the subject of financial compensation!

For the latest news and analysis go to www.portstrategy.com/news101

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