Port Strategy May 2022

MAY 2022 VOL 1022 ISSUE 4

portstrategy.com

Multi-purpose Market Report | European Box Trade Lane Analysis | Better Bollards

GRAIN: A PRICE TO PAY FOR WAR MOMBASA MACHINATIONS VIETNAM: BIG SPENDING PLANS STS10 RIVALRY HOTS UP

PORTSTRATEGY INSIGHT FOR PORT EXECUTIVES

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

VIEWPOINT MIKE MUNDY

Food Challenges – IAPH Initiative – Opportunities – Building to a Higher Level

The war in the Ukraine is in itself hugely damaging but the extent of the damage generated is actually much more far reaching. The implications of significant per tonne price rises including hiked transportation costs for agri-products are huge. For many developing countries in particular it could even mean the difference between life and death for the poorest of their populations

The recent UNCTAD so-called rapid assessment report on the war in Ukraine highlights concerns over the two fundamental “Fs” of commodity markets – food and fuels.

The general picture presented confirms a rapidly worsening outlook for the world economy underpinned by rising fuel, food and fertilizer prices.

UNCTAD points out Ukraine and Russia are global players in agri-food markets, representing 53 per cent of global trade in sunflower oil and seeds and 27 per cent in wheat. Factoring this in and the disruption to export activities caused by the war – Ukraine’s ports are entirely closed – UNCTAD states the situation is “especially alarming for developing nations.” It underlines: “As many as 25 African countries, including many least developed countries import more than one third of their wheat from the two countries at war. For 15 of them,” it says, “the share is over half.”

The assessment goes on to suggest, as highlighted in PS’s own detailed assessment of the grain sector featured in this issue – Grain: A Price to Pay for War, that the consequences of substantial price hikes with agri-products and disrupted sources of supply are potentially far reaching. It concurs with the thinking in our article when we say: “It may be that the greatest number of casualties from Russia’s adventure will be those who starve in the Developing World.”

Not of course to undermine in any way the suffering that is taking place on the ground in Ukraine, as highlighted by the dreadful situation in the port city of Mariupol. Indeed, to digress for a moment PS would like to draw your attention to the recent initiative undertaken by the International Association of Ports & Harbours who have teamed up with The Seafarers’ Charity to raise much-needed funds to support Ukrainian port workers who have been impacted by the terrible war in their country. Full details of this initiative can be found here including how to donate: https://bit.ly/PortWorkersAppeal Like ourselves, UNCTAD further concludes that food shortages have the potential to lead to civil unrest. “Agri-food commodity cycles, for example, have coincided with major political events, such as the 2007-2008 food riots and the 2011 Arab Spring,” it stresses.

This issue of PS also provides a view of the current and potential future status of the multi-purpose and heavy lift sector as well as offers insight into the future of European container trades as set out in a new report from Royal HaskoningDHV. Across the board, challenges are referenced but also, thankfully, bright spots with more highlighted in the two country reviews, Vietnam and Brazil. Both cite significant growth trends, investment activity and a range of business opportunities.

The tenor of the UNCTAD report is pessimistic, and clearly there are significant structural challenges in play, but against this it is notable that the visibility and importance of the shipping, transport and logistics sector is, as a result of COVID-19 and the Ukraine War, much higher up the scale. Going forward it is to be hoped that this will play its part in funding and shaping an industry that offers higher levels of efficiency and can better maintain these in the face of exceptional circumstances.

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

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

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©Mercator Media Limited 2022. ISSN 2633-4232 (online).

Port Strategy is a trade mark of Mercator Media Ltd. All rights reserved. No part of this magazine can be reproduced without the written consent of Mercator Media Ltd. Registered in England Company Number 2427909. Registered office: c/o Spinnaker House, Waterside Gardens, Fareham, Hampshire, PO16 8SD, UK.

MAY 2022 | 3

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CONTENTS MAY 2022 VOL 1022 ISSUE 4

portstrategy.com

Multi-purpose Market Report | European Box Trade Lane Analysis | Better Bollards

NEWS 17 Land Manoeuvres Bangladesh plans

17 Rail Prioritised

Long Beach programme

19 Montevideo Build KN invests

GRAIN: A PRICE TO PAY FOR WAR MOMBASA MACHINATIONS

10 Rail Leveraged

Partnership established

VIETNAM: BIG SPENDING PLANS STS10 RIVALRY HOTS UP

On the cover The price of grain/wheat is marching upwards as a direct result of the Ukraine War. Equally, there are uncertainties about sources of supply with traditional supply lines disrupted and little prospect of a return to normal.

The net effect is a restructuring of international grain trade requiring a significant rethink on logistics and with developing countries in particular potentially facing a wider set of problems.

10 DCSA Standards Beta releases

11 Electronic B/L

Blockchain solution

11 Awake.Ai in the Cloud

Vessel event service

13 Cargotec Rethink New strategy

13 ABP Humber

Crane programme

15 Shore Power

Cavotec signs lines

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15 Finnlines Follows Suit Buys from Yara

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19 Mombasa Machinations PPP cul de sac?

20 Grain Upheaval Pricing and supply

23 Big Spending plans Vietnam readies

25 Junior Partner

Northern Vietnam update

26 Under Pressure

Central & South Vietnam need to build

29 Weakened Confidence

Multi-purpose market analysis

32 Rivalry Hots Up

STS10 competing camps

34 Vitoria Model Launched

Port management PPP model

35 Manaus Yo-Yo

Competition builds

News and views

40 European Box Trades

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37 Intermodal South America

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Online portstrategy.com 5 Latest news 5 Comment & analysis 5 Industry database 5 Events

MAY 2022

Prospects assessed

REGULARS 16 The New Yorker Wind of change

16 The Analyst

Sohar Breakaway Project

17 The Economist Good and Bad

42 Grain: System Innovation R&D and more

44 Beer Bollards Enhanced vessel berthing

50 Postscript

Environmental Cost Calculation

17 The Strategist

To hub or not to hub?

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

MAY 2022 | 5

PORT & TERMINAL NEWS

BANGLADESH LAND MANOEUVRES

BRIEFS Electric Times

Electric cargo ships are under development by a start-up called Fleetzero.

My Climate Journey (MCJ), an investment fund that supports sustainable solutions is backing the project which also has Y Combinator and Flexport as partners. Fleetzero has developed a 2 MWh lithium iron phosphate battery pack that can fit in a standard 20ft container. Fleetzero is targeting smaller vessels with these unloading depleted lithium batteries and replacing them with fully charged ones at the various ports of call.

Liberia Talks The JICA funded new port project in Matarbari, Bangladesh is all systems go again after resolving problems related to necessary land acquisition. In contrast, the PSA-backed Bay Terminal project is reported to have hit a stumbling block due to the high costs associated with acquiring 803 acres of land.

The Chattogram Port Authority (CPA) upped the compensation payment it made to the Cox’s Bazar district administration in order to factor in the presence of salt fields in the land purchase for Matarbari port.

Located 122 kilometres from Chattogram, the port is designed to be a deep-sea port and will feature container, multi-purpose and coal handling facilities, the latter intended to serve a new

coal-fired power station. An LNG terminal is also envisaged.

The target date for the opening of Matarbari’s container terminal facilities is 2026 with these able to accept vessels of up to 10,000TEU capacity.

With PSA’s Bay Terminal project, located on the coast of the PatengaHalishahar area around six kilometres from the Port of Chattogram, last June Bangladesh’s land ministry instructed the Chattogram Deputy Commissioner to transfer 800 acres of land to the shipping ministry at a nominal price. On 30 January, however, the district administration issued a letter demanding the full price with this payable within 120 days.

The original completion date for the Bay Terminal first-phase

8 Matarbari port: land acquisition problems resolved but surfacing with the Bay Terminal project

deep-water container terminal facilities was put at 2024 but it now looks as though this will slip. Up to three container terminals are envisaged, one 1225m terminal and two 830m facilities plus a 1500m multi-purpose terminal.

Overall, the port will possess 13 jetties and receive vessels of up to 280m long.

Construction cost is put at around USD2.5 billion.

Both projects, when up and running, will deliver to Bangladesh the hitherto elusive asset of deep-water and the scale economies offered by the ability to handle larger ship sizes.

RAIL GETS PRIORITY IN LONG BEACH The USWC port of Long Beach has put rail improvements at the top of its agenda under its 10-year/US$2.278 billion capital expenditure programme. This follows on from recognition of rail service disruptions that were manifest in 2021 between the ports of Long Beach and Los Angeles to the mid-west.

US$1.457 billion has been allocated for rail upgrades which include: a fourth track at Ocean Boulevard to reduce bottlenecks, double tracking from piers G to J and the Pier B rail improvement project.

The latter scheme will introduce: new arrival and departure tracks, a 93,000ft support yard, a station for up to

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

30 locomotives and support for 17 trains per day totalling 4.7 million TEU per year. Longer trains will be able to be assembled with greater frequency which streamline rail operations and minimise the increase in truck trips as container volume grows.

All the works are expected to be completed by 2032.

Against a background of the governments of Guinea and Liberia reportedly opening talks again on the transportation of Guinean iron ore through Liberia for export, High Power Exploration Inc. is reported as wanting to develop Nimba, located near Liberia’s border and estimated to hold one billion tons of high-grade iron ore.

Owned by billionaire Robert Friedland, High Power is said to want to start activities next year and to use the railway that feeds Liberia’s Buchanan port, already utilised by ArcellorMittal SA.

Marchwood Go

Solent Gateway Ltd (SGL) holds the 35-year lease (until 2051), to develop and operate the 83 hectare Marchwood Port on the River Test opposite the Port of Southampton, and has recently been granted planning consent for the development of the port.

A broad base of cargo throughput – lo-lo and ro-ro – is being targeted with the upgrades to be made including: new hard standing, improved site access and enhanced security facilities, and new warehousing.

MAY 2022 | 7

PORT & TERMINAL NEWS

KN TO BUILD OUT MONTEVIDEO Katoen Natie (KN) has confirmed it has reached an agreement with the Government of Uruguay for additional investment at the Port of Montevideo.

A total of US$455 million is to be spent upgrading the Terminal Cuenca del Plata (TCP) by constructing a second 22ha terminal yard to support a new 700m quay wall, taking ship berthing space up to 1300m, with a dredged depth of 14m available.

In terms of equipment, there are plans for between 12 and 15 new ship-to-shore gantry cranes and 50 straddle carriers (and / or rubber-tyred gantry cranes).

Once completed, KN expects the revamped facility to be able to handle 2.5 million TEU per annum and simultaneously serve four container ships. It also represents the maximum expansion of the concession area for KN. Vincent Vandecauter, CEO, TCP, explains the rationale for the project: “Terminal Cuenca del

VE Process in Busan

Plata is already the most efficient container terminal in South America, but with this new investment we are now positioning the terminal as an indispensable link in the list of the most important hub ports in the continent, and, at the same time, making the terminal more attractive for Uruguayan exporters,” he confirmed.

8 Artists impression of the planned full build out at TCP, Montevideo

KN has been working in Montevideo since 2001 and retains an 80 per cent share of the concession. It has invested US$250 million to date, including developing the 10ha Polo Oeste logistics park in collaboration with local partner, Frigorífico Modelo SA, in 2012.

PSA CONSOLIDATION IN HALIFAX

PSA International Pte Ltd (PSA) has consolidated its position at the Canadian East Coast port of Halifax (NS) by acquiring the second major cargo terminal at the port, in a process that will enable the company to better plan its future operating activities.

The acquisition of the Fairview Cove Container Terminal from NYK Line was on the radar of Canada’s Competition Bureau at the end of 2021 in case of “increased container handling fees or degraded service offerings” due to PSA operating both terminals. However, following a federal court approving the Bureau’s request to be provided with information relating to the deal for the

BRIEFS

8 There are no anti-competition concerns over PSA International operating both container terminals in Halifax (NS), now jointly branded as PSA Halifax

70-acre Fairview Cove Terminal, the government agency has now confirmed that it has officially “closed” its investigation, basically confirming no objections to PSA International closing the deal.

PSA has confirmed that the ability to offer closer coordination between the two terminals in the port will offer several key benefits, most notably in terms of gaining significant efficiencies.

For example, larger ships can be directed to the Atlantic Hub (South End) facility where there is

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

deeper water and larger cranes, while smaller ships (of under 8000TEU or less) can utilise the Fairview Cove terminal – this facility has greater restrictions on size of vessel that can be handled, notably on ship airdraft.

Overall, total container traffic in 2021 reflected a 17 per cent improvement over 2020 up to almost 596,000 TEU for 2021, but the challenge for PSA International at the port is to maintain the increases into 2022.

Halifax has deep water and largescale container cranes but a smaller local population means there is also a need to target more distant (but highly competitive) discretionary markets in Canada and the US. PSA first entered the East Coast Canadian market in 2019 when it acquired the South End Container Terminal from existing owner, Macquarie Infrastructure and Real Assets, and rebranded the 76-acre South End terminal as the Atlantic Hub. In 2021, a berth expansion was completed that allows two Super Post Panamax ships to be serviced simultaneously.

The second phase of the New Port North Container Terminal in Busan has moved a step closer.

The Busan Port Authority has confirmed that it has conducted a design feasibility review in which the Value Engineering (VE) process was completed. Under South Korean law, a VE is mandatory for any proposed design projects costing over 10 billion Won ($8.1 million). This project in the Port of Busan is valued at an estimated 630 billion won ($513.8 million).

Guyana’s Region 6

A new, largescale, deepwater port in Guyana is being planned. Dr. Irfaan Ali, President of Guyana, has confirmed that the new facility is being targeted to accommodate large cargo vessels, provide oil and gas support services, and ship agricultural exports. It will be located in the East Berbice-Corentyne Region (also known as Region 6), on the east side of the country where rice, cattle and sugarcane are available for export.

Texas Upgrades

Ports in Texas on the US Gulf Coast ports are to benefit from Biden Administration spending plans. The Port of Corpus Christi ship channel improvement project is being awarded federal funds of US$157.3 million, while the Port of Brownsville is to receive US$68 million to deepen the Brazos Island harbour channel and the Port of Galveston is getting US$11 million for Galveston Harbour deepening. All awards are still subject to US Congressional approval.

MAY 2022 | 9

DIGITAL NEWS

BRIEFS

PARTNERSHIP LEVERAGES DIGITALISATION TO BOOST RAIL FREIGHT TRANSPORT

AI at ONE

The Ocean Network Express (ONE) group of ocean carriers has confirmed a new partnership with Google Cloud to integrate artificial intelligence (AI) across all of its businesses. As a result, the company is establishing an AI Centre of Excellence (CoE) through a process of leveraging Google Cloud’s leading data analytics, machine learning (ML) and AI technologies, alongside advisory expertise from Deloitte Consulting Southeast Asia (Deloitte). ONE says that this partnership will help advance its vision of delivering intelligent shipping innovations supporting economic development and long-term growth.

Stack Stability

Busan Port Authority and South Korea’s Ministry of Science and Information and Communication Technologies have developed new technology to help prevent containers in storage stacks being blown over in strong winds. The system employs intelligent close-circuit television (CCTV) and lidar sensors to shoot corner castings adjacent to containers in upper and lower stowage locations, before then applying artificial intelligence learning techniques to classify the status as “normal” (green), “dangerous” (yellow) and “very risky” (red).

LB Demo’ Phase

The Port of Long Beach’s new Supply Chain Information Highway has entered the demonstration phase. The port is now undertaking simulations with participating terminal operators, shipping lines, trucking companies, railroad operators and beneficial cargo owners to track cargo origin and destination.

10 | MAY 2022

A new foundation partnership has been announced by 19 rail freight companies to accelerate the growth of digitalisation and data sharing across the sector.

Under the leadership of the Rotterdam Port Authority, this new foundation will be promoted over the next two years and comprise diverse parties involved in the rail sector, namely, Contargo, CTT Rotterdam, Danser, DB Cargo Nederland, DistriRail, European Gateway Services, Haeger & Schmidt Logistics, KombiRail Europe, LTE, Neska Intermodal, Optimodal, Portshuttle, Rail Force One, Raillogix, Rotterdam Rail Feeding, RTB Cargo, and Trimodal Europe.

Hutchison Ports ECT Rotterdam and the Rotterdam World Gateway Terminal are also included in the project.

In a prepared statement, Matthijs van Doorn, Commercial Director, Port of Rotterdam Authority explained: “Due to our sustainability objectives, the Port of Rotterdam Authority, together with the Ministry of Infrastructure and Water Management and the logistic parties, will focus on strong rail transport growth in the next few years,” he said.

Iwan van der Wolf, Managing Director, Portbase, the provider of the Port Community System, highlighted the benefits of digitalisation to rail activities. “The exchange of information between the chain parties is digitised further, allowing the possibility of reporting trains to the terminal plus information will be available about the composition of the train.”

8 A total of 19 companies involved with rail freight and the Rotterdam Port Authority are eager to increase digitalisation and data sharing

Van Doorn added that the transparency and insights that arise from greater use and application of digitisation processes can help contribute to improved predictability of rail freight transport as a product, which in turn means it is possible to optimise the use of the rail network, trains and employees as growth in rail freight traffic occurs.

With over 400 weekly rail services starting and ending at the Port of Rotterdam, the port authority is targeting movement of 50 per cent more freight on Dutch railroads within 10 years.

This is the equivalent of cargo on the network rising from 40 million tonnes to over 60 million tonnes.

DCSA: PUBLISHES BOOKING PROCESS AND BL STANDARDS The Digital Container Shipping Association (DCSA) has published beta releases of Standards for the Booking Process 1.0 and the Bill of Lading 2.0.

In addition, the company has announced a new website where interested participants are able to review and then provide feedback on the beta versions of DCSA standards.

“After the publication of DCSA electronic bill of lading (eBL) standards, the publication of booking process standards is the second step toward end-to-end digitalisation of the

shipping documentation process,” explains DCSA. DCSA Standards for the Booking Process 1.0 means that it will be possible to enable frictionless sharing of digitised shipping data, which in-turn will eliminate the need to rekey booking information into the eBL. The DCSA Standards for the Bill of Lading 2.0 are aligned with DCSA booking process standards and this subsequently ensures automatic uptake of booking process data.

Thomas Bagge, CEO, DCSA confirms that there is a significant

amount of potential in this area of digital processes. “In 2021, only 1.2 per cent of the bills of lading issued by carriers was digital…this leaves much room for improvement of the B/L process, which will have a significant and positive impact on international trade.

“Eliminating paper each year,” he adds, “will improve sustainability, and digitising documents will increase the accuracy and availability of digital data, which will benefit everyone along the supply chain, including customs organisations.”

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

DIGITAL NEWS The International Organization for Standardisation has confirmed a new project to establish the ‘Blockchain Marine Electronic Bill of Lading (B/L) Data Interaction Process’.

The aims of the project are to standardise the business processes, functional requirements interfaces and data formats relating to the blockchain electronic B/L system, while providing a standard guideline and reference for the flow and verification of marine electronic B/L through the blockchain system. As a result, the outputs will promote the application of blockchain electronic B/L and thereby generate a credible digital foundation supporting international trade.

So far, members of the United Nations Economic Commission for Europe (UNECE) have joined forces with Cosco Shipping to support the process. Indeed, Cosco has confirmed that it will share China’s experience in relation to multi-scenario application with the wider international community, while also promoting the implementation and global application of blockchain electronic B/L standards.

The Chinese company is also offering to contribute its involvement thus far to enhance the wider digitalisation of the global freight industry, while supporting facilitation of cross-border trade.

This latest development follows the February 2020 signing by nine ocean carriers helping to form the Future International Trade (FIT) Alliance and complete a memorandum of understanding

Monitoring Antwerp

The Port of Antwerp is partnering with Foodcareplus, Dockflow, and TrakAssure to launch Europe’s first end-toend LoRaWAN-based cargo temperature monitoring service. The new product uses existing LoRaWAN infrastructure at the port’s terminals, where TrakAssure monitors have been installed, and then streams data into Dockflow’s services via API, allowing it to be shared with relevant stakeholders.

UNECE AND COSCO PURSUE BLOCKCHAIN ELECTRONIC B/L

(MoU) with DCSA, BIMCO, FIATA, the International Chamber of Commerce (ICC) and SWIFT to

collaborate, where possible, on the digital standardisation of international trade.

8 UNECE and Cosco Shipping to pursue Blockchain Marine Electronic Bill of Lading digitalisation

AWAKE.AI LAUNCHES VOYAGE EVENT API Awake.AI has launched a globally available cloud-based service that provides automated messages when a ship enters or exits a user-defined area.

The new service is called Voyage Event API and provides actual time event information, and notifies vessel arrival times to various areas during port calls (such as pilot boarding places

and berths). This enables provision of time references automatically and objectively, and can be used in a statement of facts or records for billing.

The service also enables personnel in various port-related roles to prepare in advance for the arrival of vessels of interest without the need for continuous manual monitoring.

Another anticipated use of the

new application includes monitoring traffic in designated areas - where dredging activity is taking place or that have environmental restrictions in place etc.

Awake.AI’s Voyage Event API is a globally available cloud-based service.

Octopi in Oregon

Digital Philippines

ABP Master Pilot

Navis has confirmed that ITS ConGlobal (ITSC) has selected its Octopi cloud-based TOS to support its new greenfield intermodal facility, the MidWillamette Valley Intermodal Center (MWVIC), located in Millersburg, Oregon. Based on the site of a former papermill, the facility is to be used for transferring agricultural cargo, mostly agricultural exports, from truck to rail for onward transportation to Seattle and Tacoma and for transloading.

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

The Bureau of Customs (BoC) – Management Information Systems and Technology Group (MISTG) – of the Philippines has confirmed the launch of a new liquidation and billing system (LBS) at all ports of entry in the country. The LBS is a web-based portal designed to assess and notify consignees of fines, penalties and other charges due for collection, while also enabling system users to monitor collections or refunds of duties and taxes.

BRIEFS UK-based port operating group, Associated British Ports (ABP), has confirmed it is using eMPX, the new digital Master Pilot Exchange programme developed by Ports of Auckland.

ABP says eMPX employs cutting-edge technology and offers its pilots a purely digital experience. By using an iPad, a pilot is able to monitor and safely control a ships’ arrival at a port, regardless of vessel size and shape. The new service is cloud-based.

MAY 2022 | 11

WHEN VISIBILITY IS KEY TO PRODUCTIVITY, DON’T LOSE SIGHT OF OPERATIONS Real-time business intelligence for improved terminal performance.

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EQUIPMENT NEWS

CARGOTEC PLOTS A NEW STRUCTURE AND GROWTH

Cargo-handling machinery group Cargotec has announced that it is to exit the heavy port crane part of its Kalmar business and is also now considering putting MacGregor up for sale.

The announcements followed the cancellation in March 2022 of a proposed merger between Cargotec and Konecranes. “This planned merger was our priority, but we had an uphill battle with the competition regulators – hence we have been working as a team developing an alternative direction,” said Mika Vehviläinen, CEO, Cargotec. A new refocused strategy would deliver strong returns for shareholders, he added.

Outlining a ‘new path’ for the business in an online presentation, he said the future Cargotec would be more focused and would drive sustainable growth around its core businesses.

“We will leverage our competitive advantages in our market positions, our technology offering and our service capabilities.”

Cargotec would also use its strong balance sheet to accelerate growth through mergers and acquisitions and

investment in core capabilities, stated Vehviläinen.

Heading to the detail, he said Hiab, provider of on-road load handling equipment, remained very much a core part of the strategy and was a high-growth, high-performing business “which we plan to accelerate further”.

In the Kalmar cargo handling equipment and terminal solutions business, he explained the product focus would shift towards highly profitable mobile solutions, ‘horizontal transportation’ and related services, “leveraging our strong market position, our servicing and our capabilities in automation, robotisation and electrification”.

There would be an exit from the loss-making heavy cranes business – either by ramping down activities or by finding a buyer.

MacGregor, with its maritime cargo and load handling portfolio of products, services and solutions, had good growth prospects “but does not fit within our refocused strategic direction,” he opined. Options were being evaluated, including a potential sale.

As well as the heavy cranes

8 With the planned Cargotec/ Konecranes merger off, Cargotec is redefining its future strategy

sale and MacGregor review, the next 12 months would see an acceleration in the M&A pipeline in the core business around Hiab and the core Kalmar business, Vehviläinen confirmed. Cargotec would continue to drive competitive advantage by investing in electrification, robotics and digitalisation, and maintain a strong focus on climate change targets; climate change also presented business opportunities, he noted.

“In all of our core businesses, we are number one or at least a strong number two. A refocused Cargotec is an attractive investment opportunity.”

Vehviläinen was asked about exiting the heavy crane business and whether Cargotec would continue to service existing Kalmar cranes. “We are looking for a potential buyer but if we can’t find a buyer, we will simply ramp down – we will not take any more business,” he said, but there was a good opportunity to retain the servicing of existing cranes.

ABP HUMBER: FIVE YEAR CRANE PROGRAMME Associated British Ports (ABP) is rolling out a five-year and GBP32 million crane programme that involves new crane purchase, the comprehensive refurbishment of existing cranes and investing in landside equipment. Maximising eco-friendliness is a central theme of the programme.

Crane acquisition in the Humber is split between investment in mobile harbour cranes and hydraulic cranes – the first of which is the Mantsinen 300M, the world’s largest hydraulic crane, which was scheduled to arrive at the port of Immingham in late April.

Other new crane orders will be

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

placed but the precise type is still under consideration and specifically with regard to matching port user requirements over the long term future.

Among the cranes being refurbished are the Butterley cranes built in the 1990s to serve the width of the locks in the ports of Immingham and Hull.

BRIEFS Tincan Orders

Tincan Island Container Terminal Limited (TICT) has ordered two Konecranes Gottwald ESP.8 mobile harbour cranes for its terminal in Lagos, Nigeria.

Scheduled for delivery in June 2022, the cranes have a working radius of 54m and a lifting capacity of 150 tonnes. TICT is a consortium made up of Bolloré Ports and a Chinese partnership formed by China Merchants Holding International (CMHI) and China Africa Development Fund (CADF).

WWL Pressure

Vessel operator Wallenius Wilhelmsen Lines reports it is currently looking into alternative GPS tracking solutions for use in conjunction with its cargo handling fleet. This follows the trialling of another tracking method which proved to be unsatisfactory.

Wallenius notes that its cargo handling equipment fleet is currently under sustained pressure and believes that a GPS based tracking solution can play a major part in maximising both equipment availability, getting it in the right place at the right time, and performance.

Bromma at LBCT

Bromma has concluded an agreement with Long Beach Container Terminal (LBCT) to supply another six of its STS45E G2 units and as part of efforts to support the terminal’s environmental ambitions.

The new all-electric twin lift spreader from Bromma offers up to a 90 per cent reduction in spreader power consumption while eliminating the risk of hydraulic oil leaks. The fully-automated, 300acre, 3.3 million TEU per annum, LBCT facility additionally operates with electric ASC and a fleet of battery-electric AGVs.

MAY 2022 | 13

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EQUIPMENT NEWS

CAVOTEC SHORE POWER LINER ORDER…

Cavotec, the Swiss-based cleantech company reports a major new shore power equipment order from the liner shipping sector. The value of the deal is more than €2 million (US$2.2 million) and it has been placed by a company based in the Nordic region.

Cavotec is a specialist company that focuses on the design and implementation of connectivity and electrification solutions supporting the decarbonisation of the port industry.

This new order is for the provision of equipment that will,

when retrofitted to some of the largest container ships in service, enable connection to shoreside electricity, according to Cavotec.

Specifically, a number of the company’s PowerAMPReels have been requested, which when connected to shore power enable a ship to achieve significant reductions in emissions of carbon dioxide, nitrogen and sulphur oxides, and particulate matter.

This generates an improvement in air quality at the port concerned but also in surrounding residential areas.

The retrofitting exercise will be

8 Cavotec has confirmed a major order for the retrofitting of shore power equipment to container ships

undertaken when the nominated container vessels are undergoing scheduled maintenance while in drydock with the process starting in Spring 2022 and running through to early 2023.

This latest announcement follows similar deals confirmed recently by Cavotec for the provision of shore power connection for 13,000TEU and 7000 TEU containerships being built in China for Chartworld and Eastern Pacific Shipping (EPS), respectively.

….AND YARA MARINE TECHNOLOGIES FOLLOWS THE SAME PATH Finnish ferry operator, Finnlines, has signed a new contract with Yara Marine Technologies of Norway for the installation of specialist shore power systems to three of its vessels.

The project is scheduled for completion by the end of 2022 and will reportedly play a significant role in helping Finnlines to eliminate emissions caused by its ships while in port, as part of an ongoing initiative to reduce its environmental impact.

The ability to reduce noise and vibrations from ship engines, while making sure there are reductions in emissions during port calls is significantly enhanced by the use of shore side power.

Indeed, the ability to reduce fuel consumption, while meeting increasingly stringent emissions regulations and transitioning to net zero emissions is highly appealing to shipping operators. It is further enhanced if the shoreside power being provided is via a supply of renewable energy.

Thomas Doepel, COO of Finnlines notes: “Finnlines is committed to providing

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

8 Finnlines is utilising Yara Marine shore power solutions as it targets more sustainable transport

sustainable and responsible transportation options in the Baltic and North Seas. By equipping these vessels with a shore-to-ship connection, we commit to our goal of reducing harmful emissions and noise while in port.”

BRIEFS Ferrari: Hybrid and Electric

CVS Ferrari and Aidrivers have signed a memorandum of understanding to collaborate on developing autonomous container handling equipment. CVS Ferrari is the producer of innovative heavy-lifting equipment, while Aidrivers is a global specialist in AI-enabled autonomous solutions across the industrial mobility industry. The companies have said their initial focus will be on autonomous hybrid and electric empty container handlers.

Gloria for Uwe Kleinwort

Kalmar, of Finland, is supplying German vehicle provider, UWE Kleinwort Gmbh, with five new, 45ton lifting capacity Gloria reachstackers. Located at the Port of Hamburg, Germany, the company has a 150-strong rental equipment fleet, consisting of Kalmar reachstackers, tractors and fork lift trucks.

This new order is due to be delivered to Uwe Kleinwort in May 2022 to keep pace with growing rental demand for its equipment.

Auto Gävle

With a view to the eventual introduction of automated handling and transport solutions, Semcon is to undertake a feasibility study involving the mapping of container movement by truck from container warehouses to the dockside at Yilport’s Gavle, Sweden terminal. This pilot project foreshadows a larger effort to develop a fully autonomous logistics production solution for Yilport. Semcon will be assisted in the project

by Yeti Move, which will deliver a platform for controlling and monitoring autonomous operations.

MAY 2022 | 15

THENEWYORKER BARRY PARKER

THE BIG D’S AND THE WIND OF CHANGE In the realm of deepsea shipping, where I spend a lot of time, the big items are “digitalisation” and “decarbonisation”.

Though the emphasis is slightly different, the port community in the US (and indeed all over the world) is grappling with both of these “Ds”. Another “D”- data, is really buttressing both of these, albeit it is most efficient working in the background, out of sight. As efforts are underway, at a USA Federal level (presumably in close coordination regionally and locally), to gain greater insights into all things related to data in supply chains, it will be important for planners to take an expansive view, less port operations get gummed up by unanticipated shifts in business practices. I am not talking about shifts, real or imagined, of container traffic to East Coast ports; rather I am thinking about inchoate businesses really opening up.

In New York, my home town and backyard, exciting developments are underway.

Offshore wind, a long contemplated major factor in the state-wide electrification efforts, is now moving beyond the planning stages into real activity, with the beginnings of development surrounding the New York Bight. There will be new traffic patterns for vessels entering and departing the harbour, as turbines are sighted and cables are laid. There will also be a massive surge in movements of cargo to support construction, and then

8 The development of offshore wind energy systems is an influential factor in the New York area for the data architects to take into account

subsequent servicing, of the wind energy infrastructure. Talk about a shift in business practices, let’s hope that the data architects are thinking of the mid 2020’s, as they develop plans, in 2022, for data flows for avoiding future supply chain chaos.

Less exciting are developments surrounding another type of traffic around the

region. For years, I had ranted to anyone who would listen, that my least favorite motorway, the decrepit and decaying 1950’s era Brooklyn Queens Expressway (or “BQE”), would fall into the water.

City planners seem to have agreed, they closed several lanes in one particularly sensitive spot, backing up vehicular traffic even more than previously (hard as that is to imagine). Now, there is a renewed groundswell of interest in barging of containers and truck trailers around the harbor. This may be very low tech. But, similarly to the higher tech realm of wind energy, my hope is that in this blockchain enabled world, where port planners bring in their techie friends, data efforts should not omit the boring side of transportation. Mundane developments such as driving truck trailers onto a barge, or hoisting containers maybe two or three high on to a flat platform to be towed across the harbor, should also be considered by data architects.

THEANALYST PETER DE LANGEN

Scholars looking into clusters in general, and port clusters specifically, have come to understand that the development of such clusters is a path dependent process, in the sense that past developments in ports affect the future development path of these ports. Sohar’s industrial port complex has been mainly built around the availability of relatively cheap gas.

This has attracted major investments, amongst others, in steelmaking, chemical industries and an iron ore pelletizing plant.

Given Oman’s relatively small gas reserves, as well as the increasing demand for ‘decarbonised steel and chemicals’ this historical

16 | MAY 2022

PORT CLUSTERS: THE SOHAR ‘BREAKAWAY PROJECT’ GREEN INITIATIVE development path no longer provides a solid basis for a vital port industrial cluster; indeed one could imagine a scenario in which the activities increasingly come under pressure, investments dwindle and the port industrial cluster becomes a liability for Oman’s economy, instead of an asset.

In other words, the cluster needs a ‘breakaway project’, that provides a new basis for the development of the port complex and reduces its dependence on gas. Recent news evidences progress with such a breakaway project: Jindal Shadeed, Hydrogen Rise, and Sohar Port and Freezone

(SOHAR) have signed an agreement to evaluate the development of a green hydrogen plant in Sohar, to decarbonize Jindal Shadeed’s steel manufacturing plant. The hydrogen is produced from Solar energy, for which conditions in Sohar are favourable.

The Sohar Port Development Company sees this as a key step towards building a viable gas alternative that will encourage sustainable practices in all SOHAR industries and attract new firms, while for Oman this project has a high strategic value as it allows it to conserve gas supplies for other uses across the country.

In general, the business case for ‘breakaway projects’ is complex, as they are not building on established strengths.

The ‘value case’ however (including the value creation for society at large, lower emissions and the Oman economy, a sound platform for future growth), often is positive. Thus, governance becomes a key differentiator: clusters with a high ability to develop effective public private partnerships will forge ahead, while clusters where ineffective governance reigns fall behind. The progress of this breakaway project is therefore worth following.

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

THEECONOMIST BEN HACKETT

Recession is in the news but there is no consensus as to when this might occur. The good times may be over before they really took hold.

The bad news is that institutions are beginning to bring up the subject of an impending recession. The problem is that there is no consensus of when this might happen.

The good news is that most of the G7 economies are doing well in terms of employment, economic expansion, and investment.

According to data from the UK House of Commons Library, In Q4 2021, UK GDP grew by 1.3 per cent compared with the previous quarter (Q3 2021). Eurozone GDP grew by 0.3 per cent, despite a 0.3 per cent decline in Germany.

In the US, GDP growth of 1.7 per cent was recorded. Towards the end of January, the International Monetary Fund (IMF) projected global GDP growth at 4.7 per cent, down from its previous 5 percent. The UK is projected to have the strongest growth

GOOD NEWS AND BAD NEWS: TAKE YOUR PICK

followed by the Eurozone and then the US. This was before the Russian invasion of the Ukraine.

The OECD estimates that global GDP growth estimates would be reduced by 1 per cent because of the war a result of inflationary pressures leading to less demand for goods.

8 Zero tolerance for Covid in China and the resulting lockdowns are seen to be a contributary factor to recession

The “bad” news folks are consistent about the pressures on economic expansion that could lead the world into a recession.

The primary one is inflation, worsened by the Ukraine war which is hitting energy commodities as well as the agricultural sectors. Their view is that central banks will focus on lowering inflation as quickly as possible back to the 2.1-2.5 per cent targets and that they may do this by hitting the brakes too hard by raising interest rates and taking money out of the national economies. Added to this is the devasting impact of Zero tolerance for Covid in China which has seen the total shut down of the Shanghai region with some 26 million people isolated in their homes. This has virtually stopped industrial production and the service industry and will certainly have a recessionary impact.

There is no consensus as to when the recession will take effect. One major Wall Street bank suggests sometime next year, others are thinking of the latter part of this year. Take your pick.

THESTRATEGIST MIKE MUNDY

SANTOS: TO HUB OR NOT TO HUB? Does the port of Santos, Brazil have what it takes to achieve major hub status? An interesting question in itself but all the more interesting as it is an issue that has a major bearing on the forthcoming offer of a new concession, STS10, for container handling as well as on the planned privatisation of the port management body.

There are basically two camps as regards the STS10 privatisation – one that argues that the port needs another container terminal to promote competition and another whose participants contend that the port should scale up container terminal facilities as part of a serious effort to achieve major hub status. In effect, this

would allow Maersk and MSC, 50: 50 partners in BTP, the port’s largest container terminal, to jointly bid for the new area which sits adjacent to their existing terminal and in the event of a successful bid join the two facilities together into one large entity. As it stands, however, Maersk/MSC have been told they are not allowed to bid together but can bid independently or in a consortium which does not involve their existing partner in BTP. Understandably, there is a push on by the promoters of the hub concept aimed at seeing the concept gain acceptance at a government and other influential levels. But, of course, this

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

depends on whether Santos has all the qualifications to make it as a front -ine hub.

The first important point is location and in this respect it can be said the port is good for serving Sao Paolo, the main industrial centre, plus it has the potential to feeder Rio and Porto Alegre. On the negative side, it is too far south to feeder the northern part of Brazil.

The next issue is depth and there is scope for improvement here. According to Maersk, the port operates with a dredge depth of 14.45m but 17m is a more realistic requirement in terms of accommodating larger vessel sizes and coupled with this

realising the associated economic benefit.

Third, Santos would function as a hub and spoke hub and as such requires good feeder coverage but at present, and up until 2027 when there is a rule change, there are cabotage rules restricting feedering to high-cost Brazilian flag vessels.

The overall conclusion is, therefore, that given the foregoing the concept of a large hub port at Santos makes only limited sense. On this basis, the best development path for the port appears to be the second option – the introduction of another operator to consolidate and expand the competitive environment.

MAY 2022 | 17

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CONTAINER TERMINAL CONCESSION

MOMBASA MACHINATIONS Another attempt is underway to introduce the private sector into container handling operations in Mombasa but like its predecessors this process is attracting criticism. Mike Mundy reports

8 CT2 Mombasa is on the starting blocks with KPA pushing a plan to introduce the private sector into the terminal’s operation that promises to draw much criticism

Controversy is the watchword of initiatives to privatise container handling in the port of Mombasa, Kenya and reports of the Kenya Ports Authority (KPA) undertaking a new initiative in this respect suggest that this will go down the same path.

The KPA has reportedly selected Switzerland-based Mediterranean Shipping Company (MSC) to run its recently completed CT2 container terminal facility, the 2nd phase development of the new container terminal which opened for business in 2016, with this first phase operated by KPA employees.

MSC’s involvement is understood to be via the Kenya National Shipping Line (KNSL) in which it is endeavouring to raise its stake to 47 per cent while KPA in turn relinquishes 21.8 per cent of its shares reducing its stake from 74.8 per cent to 53 per cent. The proposition is thus that KNSL will, as part of the joint venture, become the new operator of the Mombasa Container Terminal 2 (CT2), as well as offer container liner shipping (on a slot deal basis) and freight forwarding services.

The revised shareholding transaction is now reportedly with the East and Southern Africa (Comesa) Competition Commission for approval with various industry players invited to submit comments on it up until late March.

It is a fair bet to that assume that a lot of comments would have been received for diverse reasons.

PROCESS CONCERNS It is noteworthy that over the years there has been considerable interest in the privatisation of Mombasa container terminal facilities. It is in the sights of diverse international container terminal operators and other potential investors many of whom invested considerable financial, time and other resources in the failed KPA led bid process for CT1 in 2015. This process was eventually cancelled due to the generally chaotic tender procedure and ultimately irregularities centring on last minute changes to the offer which attracted accusations of corruption. Doubtless the innocent parties in this original bid round will not be happy to know that they will not be given a second opportunity – hardly a strong testament to FDI in Kenya. Indeed, given the

general history of KPA with corruption related problems and intertwined with this the failure of the last bid process there will be concern over what can be construed to be a backdoor process that gives a private entity a major stake in CT2.

It is also interesting to note that that this partnership agreement comes only a few months after the implementation of Kenya’s new Merchant Shipping Act which bars private shipping lines from operating port facilities. MSC does of course have a terminal operating arm but at the very least this is a grey area in conjunction with the deal.

There is additionally the question of whether such a terminal operating arrangement meets the spirit of the conditions stipulated in the JICA loan which has funded the terminal development, namely that the terminal should be privately operated. Is this halfway house sufficient? Can the best operator, under the best operating terms, be put in place without a competitive tender process open to a broad range of eligible parties?

Another fundamental question is the overall viability of KNSL. The Shippers Council of Eastern Africa, for example, contends that it is very difficult for KNSL to compete without its own vessels and containers and that chartering slots will only increase the cost of doing business. Further, there is a belief in the Council and among other parties that the rebirth of KNSL may well prove a still birth with it again heading into an era of mismanagement and accumulation of massive debts, as previously led to its collapse. Furthermore, the provision in the deal for KNSL to transport and handle all government cargo has been criticised as unlikely to guarantee value for money in the same way that competitive bidding for this cargo can.

There are other concerns – the Auditor General has in the past raised concerns about the dilution of KPA’s stake in KNSL and the process behind MSC’s selection.

ROOM FOR IMPROVEMENT If it is true what they say that “the best deals are simple deals” then this new proposed operating arrangement for CT2 is most unlikely to meet this criteria. There certainly seems significant scope for improvement with history telling us a properly conducted open tender process has a lot of merit attached to it.

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

MAY 2022 | 19

GLOBAL GRAIN TRADE DISRUPTION

GRAIN: A PRICE TO PAY FOR WAR Andrew Penfold discusses the far-reaching changes triggered in world grain trade by Russia’s invasion of Ukraine. Higher prices with potentially very damaging consequences are a central theme

8 Mariupol port, Ukraine recently completed the construction of a new grain export terminal but G7 agricultural ministers have confirmed that Russia is deliberately targeting and destroying such facilities

The fall out from Russia’s invasion of the Ukraine is still far from clear. From the current perspective (mid-April) no end is in sight with destruction and casualties mounting rapidly.

What is increasingly apparent is that Russia has resumed its old (Soviet) status as global bogey man number one and that even any kind of tacit economic support is untenable.

Some countries are still sitting on the fence but as evidence of barbaric behaviour accumulates this can’t go on.

Aside from Ukrainian victims a much larger risk is emerging that is focused on grain supply. The global implications of this are far-reaching and will hit the world’s poorest. There are implications for the shipping and port sectors.

LOWER VOLUMES, HIGHER PRICES In the 2021-22 crop year the US Department of Agriculture (USDA) placed Ukraine’s maize (corn) production at 42m tonnes, with exports of at least 33m tonnes – around 17 per cent of global supply. There is a similar situation for wheat; the USDA placed production at 33m tonnes with exports of 24m tonnes (a global market share of 12 per cent). The country Is also important in the various oilseed groups. It is far from clear under current circumstances how production will develop in the next few years and – perhaps more importantly – how any export surplus will reach global consumers. Up until the invasion, the Ukraine had already

20 | MAY 2022

exported around 75 per cent of totals for the current crop year (2021-22), with this suggesting a shortfall of at least 14m tonnes that will fail to reach international markets in the balance of the current crop year (Figure 1), with no certainty about production in 2022-2023.

On a global basis, Russia is even more important with around 35m tonnes of wheat exports in 2021-22 and 4.5m tonnes of maize exports.

Ukrainian ports are shut, and the Ukraine’s Maritime Administration has confirmed that they will remain closed until the war is over. There is no clear picture on the level of damage to the grain export infrastructure in the ports so a rapid resumption cannot be assumed.

The issue with Russia is focused on sanctions, with purchasers reluctant to commit to additional contracts and banks hesitant to finance Russian commodity deals. These concerns could perhaps ease if a desperate situation emerges for global food supplies, but severe disruption is guaranteed.

There has been an immediate and direct impact from lower exports on the grain market. AgFlow, a crop data company, has estimated that the number of grain bulkers leaving Russian ports was down by 67 per cent at 73 in March, with nothing shipped from the Ukraine.

All this is being manifested in much higher grain and

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

GLOBAL GRAIN TRADE DISRUPTION

‘‘

SUBSTITUTIONS AND CHANGING TRADE PATTERNS Some countries are heavily dependent on Ukrainian wheat and this is especially noted in the MENA region (Middle East and North Africa). The relative proximity of these markets to the Black Sea has seen a rapid increase in dependency on shorthaul supplies with port facilities largely tailored to these requirements.

Egypt, Yemen, and Turkey will all need to find alternative supplies and it is important to note the importance of aidfunded wheat in some of these markets. Indeed, it has been reported that some countries (for example, Egypt) have withdrawn from the global market, with this indicating that current prices are simply unaffordable.

The MENA region will be at the centre of the storm. Most of the region relies on wheat imports with spiralling prices leading to political disruption and – at worst – famine. In many MENA countries, basic food prices such as bread are heavily subsidised by the government. When prices rise to an unattainable level, the government can no longer afford to keep prices low, with predictable results.

The level of political risk is enormous with the instability that led to the Arab Spring in 2010 attributed by some directly to higher bread prices. Even if peace were to break out – which seems extremely unlikely – there will be no rapid recovery to the established status quo ante.

It may be that the greatest number of casualties from Russia’s adventure will be those who starve in the Developing World due to a lack of grain delivered at a reasonable price.

China, as the world’s largest grain importer has already ordered its importing agencies to ensure sufficient supplies in the current uncertain market irrespective of price. This can only mean an increased dependency on the US for any shortfalls and China has lifted phytosanitary restrictions on imports from Russia – although the routeing of this source remains problematic. There has also been increased substitution in the oilseeds markets with this especially benefitting the soyabean sector.

Indeed, the only real alternative suppliers with relatively stable climatic conditions are the US and Canada, with both having the potential to increase plantings to meet greater demand and much higher prices. If the current disruption is prolonged increased plantings in other suppliers may help but will not offset loss of Black Sea grains.

PORT IMPLICATIONS Prior to the early 1990s, the grain trades were dominated by exports from North America and more volatile year-on-year shipments from Australia and Argentina, with Brazil

8 Figure 1: Ukraine – lost grain exports this crop year (2021-2022)

Source: Bloomberg

oilseed prices with a 70 per cent increase in global wheat prices and maize increasing by 30 per cent in the period since January 2022.

Prices were already high due to Covid disruption but seem set to show even steeper increases because of these supply constraints. The Ukraine and Russian tonnages cannot be simply turned on again and prices will be much higher than anticipated for several years.

Source: Ukraine Agriculture Ministry, USDA, ING Research

It may be that the greatest number of casualties from Russia’s adventure will be those who starve in the Developing World

8 Figure 2: Wheat Prices since the beginning of 2022 – further increases likely

developing its role as a soyabean producer. Demand was focused on the rapidly emerging east Asian economies and increasing shipments of food aid to Africa and other lowincome zones. In addition, agriculture support in the European Union was seeing subsidised exportable surpluses.

The port infrastructure was optimised for these trades.

Since then, the re-emergence of the fertile Black Earth breadbasket in the Ukraine and Russia has revised the picture with these suppliers moving to centre stage – although export infrastructure has always remained behind the curve. The switch back to alternative suppliers has significant implications for port development. Some specifics: 5 MENA (and other) ports will need to be upgraded to berth the larger vessels that will be used on longer haul nonBlack Sea trades.

5 US (and to a lesser extent) Canadian export elevators will need additional investment. The capacity is there, but total volumes shipped have been below maximum levels for some time. Additional upstream remedial investments are also likely to be needed.

5 Greater attention will need to be paid to grain stockpiling.

With increased reliance on typically volatile production and export sources, this will focus attention on both Australian and Argentine export terminals.

5 The grain aid sector was already increasing, and this will now accelerate. Shipping wheat to draught restricted facilities will need very careful management – and increased port investment.

It is not clear where the funding for all of this will come from, but if political instability is not to avalanche across the globe it will it have to be found. Thankyou Mr Putin!

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

MAY 2022 | 21

Host Port:

Bruges • Belgium

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The world’s leading conference on environmental Ports’ aspects comes to Bruges, Belgium Join us for two days of conference presentations and learn from the foremost experts in environmental technologies visit: https://www.portstrategy.com/greenport-cruise-and-congress contact: +44 1329 825335 email: congress@greenport.com

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BALANCING ENVIRONMENTAL CHALLENGES WITH ECONOMIC DEMANDS

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Monday 17th October 2022 Welcome Reception

DAY ONE - Tuesday 18th October 2022 0800 Coffee and registration 08:30 Opening by Chairman/Moderator Dr Christopher Wooldridge, Honorary Research Fellow - Cardiff University

08:40 Welcome Address by Port of Antwerp-Bruges

Keynote addresses 09:00 - Isabelle Ryckbost, Secretary General, European Sea Port Organisation and other invited high profile guests 10:00 Decarbonization - A Ship Operator’s perspective Capt Sameer Bhatnagar, Sr Decarbonisation Integration Manager - Decarb Business Development & Innovation, A.P. Moller - Maersk

10:00 Question & Answer with Presenters and special guests 10:25 Coffee & Networking

Session 1 – Fuel & energy provision for shipping & cruising 10:55 Challenges and chances of ’green’ fuels Malte Siegert, NABU Hamburg

11:10 Multi Fuel Port Port of Antwerp-Bruges

11:25 Baltic ports for climate Bogdan Oldakowski, Secretary General, Baltic Ports Organization

11:55 Question & Answer Session 12:15 Lunch & Networking

Session 2 – Cruise Stream What’s next for the cruise industry – taking a look at the latest in sustainable cruise ships

13:35 New future low-carbon fuels Linden Coppell, Director of Sustainability, MSC Cruises 13:50

A zero-emissions luxury cruise line in the making Rolf Andre Sandvik, CEO, Northern Xplorer

Congress Stream Green Corridors - A pathway to net zero

13:35 Port energy supply for green shipping corridors Charles Haskell, Maritime Decarbonisation Hub Program Manager, Lloyd’s Register & URAP 14.40 Question & Answer Session More speakers to be announced

14:40 Question & Answer Session More speakers to be announced

1505

Coffee & Networking

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

Session 3 – Cruise Stream

Congress Stream

Sustainable cruise projects in aid of being carbon neutral by 2050

Working Group – Achieving and demonstrating Sustainable Development in the port sector

15:30 - Onshore Power Supply for cruise vessels

15:35- Workshop Facilitator: 16:50 Dr Christopher Wooldridge, Honorary Research Fellow - Cardiff University ‘Sustainability’ and ‘Sustainable Development’ are key topics that are mentioned in the daily, mantra of political, social and commercial organizations. This Workshop is designed to assist representatives from ports to contribute comments and opinions on the 4 pillars of Sustainability

16:30

Port of Antwerp-Bruges Xxxx

16:30

Question & Answer Session More speakers to be announced

Session 4: Powering ships in port - On-shore power supply panel discussion 16:50- A panel discussion focusing on the Alternative Fuels Infrastructure Regulation and Fuel EU Maritime aspect 17:30 of ports & shipping having to have shore power facilities installed by 2030.

Featuring Martin Kroger, CEO, VDR, Valter Selén, Senior Policy Advisor Sustainable Development, Cruise and Ferry Network, EcoPorts Coordinator - ESPO, Edvard Molitor, Head of Sustainability, Port of Gothenburg and other key players in the port, shipping and technology industry.

17:30 Conference Close CONFERENCE DINNER – Hosted by the Port of Antwerp-Bruges

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DAY TWO - Wednesday 19th October 2022 08:20 Coffee and registration 09:00 Opening by Chairman/Moderator Dr Christopher Wooldridge, Honorary Research Fellow - Cardiff University

Keynote addresses 09:10 09.55 Ms. Lamia Kerdjoudj-Belkaid, Secretary General, Federation of European Private Port Companies and Terminals ESPO Environmental Report Valter Selén, Senior Policy Advisor Sustainable Development, Cruise and Ferry Network, EcoPorts Coordinator - ESPO 09:55 Question & Answer with Presenters 10:20 Coffee & Networking

Session 5: Monitoring - How ports can monitor their emissions 10:50 Biodiversity and Environmental monitoring at the Port of Dover Megan Turner, Environment and Sustainability Manager, Port of Dover

11:05 emiTr – emission tracking software for ports and harbours Paul Martin, Director of Maritime, AqualisBraemar LOC

11:20 Port of Antwerp-Bruges 11:35 Question & Answer Session 12:00 Lunch & Networking

Session 6: Ports/Terminals: Transitioning to Clean Fuels – The key Steps 13:30 PWRSwäp De-risks Decarbonization Actions for Marine Industry Brent Perry, CEO, Shift Clean Energy

13:45 Operational impact of electric cargo handling equipment Mette Kjems Baerentzen, Product Portfolio Manager, Kalmar 14:00

Port of Antwerp-Bruges

14:30 Question & Answer Session 14:50 Coffee & Networking

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Session 7

Session 8

orts and AI - How digitalisation can be used for P further improvement

Sustainable Partnerships

15:20 Ali Nicholl, Head of Communication and Engagement, IOTICS 15:35

Port of Antwerp-Bruges

16:20

Question & Answer Session More speakers to be announced

15:20

‘We’re all in this together’ – collaborating to deliver sustainable development of port operations.

Christopher Wooldridge, Honorary Research Fellow - Cardiff University Herman Journée, Chairman ECO Sustainable Logistic Chain Foundation 15:35

Port of Antwerp-Bruges

16:20 Question & Answer Session More speakers to be announced

16:40 Conference Wrap up by Conference Chairman/Moderator Dr Christopher Wooldridge, Honorary Research Fellow - Cardiff University

16:50 Conference Close

DAY THREE - Thursday 20th October 2022 10:00-13:00

Port Tour/Technical Visit

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VIETNAM: NATIONAL PORT MASTERPLAN

BIG SPENDING PLANS Vietnam is already a major manufacturing hub, with further potential to offer an alternative option to China. AJ Keyes examines future port development plans Vietnam is one of the most densely populated countries of South-East Asia, with an estimated population of 96 million. It has also emerged as one of the largest developing economies in South East Asia. Although the country remains heavily dependent on agriculture and agricultural products, the Government remains keen to ensure reformative policies boost import and export potential.

Recent GDP reached an all-time high of $271.2 billion, with an average GDP growth of 6.4 per cent in the period between 1990 and 2020, representing continued trade progress.

Traditionally, Ho Chi Minh (Saigon) was the focus of container terminal development, but as the economy has grown, the port focus has become more widespread.

SHIFTING SUPPLY CHAINS Focus on shifting a large volume of freight from China and Singapore to Vietnam has boosted the development of port infrastructure in the region. This has been further supported by trading potential triggered by the US-China trade issues, leading foreign investors to regard Vietnam as a viable option for establishing manufacturing units, along with export and import activities. The lower manufacturing costs in Vietnam compared to China represent a key factor here too.

‘‘

The fund for all of the port development in Vietnam to 2030 is estimated at VND313 trillion (US$13.6 billion)

FIVE-GROUP PORT DEVELOPMENT AIMS According to the newly released Vietnam port master plan to 2030, the national government wants to develop a more modern seaport system to support improved economic competitiveness and industrial development as a high-middle income country – and all by the end of the current decade.

The master plan outlines a range of initiatives across different port groups, as summarised in Table 1, with infrastructure priority given to international port developments at Lach Huyen (Hai Phong) and Cai Mep (Ba Ria-Vung Tau).

Moreover, to improve connectivity the rail network will be developed to link ports on a North-South corridor, along with extra highways, national routes and local roads. In addition, the development of inland ports in economic zones and trade corridors, using waterways and river/sea routes will be considered.

The fund for all the port development to 2030 is estimated at VND313 trillion (US$13.6 billion), which will primarily be financed from non-government sources. Clearly, the private sector will be targeted – and needed – to bring these plans to fruition.

8 Table 1: Summary of Vietnam Masterplan Port Plans

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

MAY 2022 | 23

Source: Vietnam Seaport Masterplan

The number of ports in Vietnam, including all the small facilities, totals around 320, along its 3444km coastline. However, in terms of major commercial operations in the country that can handle larger container ships and volumes, there are far fewer tangible options. Figure 1 provides a summary of the main facilities in the country for container handling.

8 Figure 1: Overview of Vietnam’s Main Container Ports

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NORTHERN VIETNAM: PORT DEVELOPMENT

JUNIOR PARTNER Container volumes at Haiphong port have grown in recent years, but overall traffic is steadily slipping away from the north of Vietnam. AJ Keyes considers if this position is expected to change in the future

NORTH VIETNAM – THE JUNIOR PARTNER Using port data equivalent to 97 per cent of total origindestination container cargo in Vietnam, the geographic split between the North (principally Haiphong) and the South can be seen in Figure 2.

Here, the northern ports accounted for 29 per cent in 2014, with the southern facilities handled 71 per cent, but by 2021 the share had fallen to just 27 per cent for the North and grown to 73 per cent for the ever-larger ports in the South.

So, is there anything expected to occur in northern Vietnam to change the status quo? Well, according to the Vietnam Railway Authority (VRA) there are plans to boost freight moving by rail in the country, with a target of moving 11.8 million tons of goods per annum by 2030.

STRONG INERTIA TO OVERCOME There is strong inertia to overcome. Currently, goods from almost all major ports in Vietnam are transported by road, leading to high logistics costs and resulting congestion. The position has not been helped by Vietnam’s railway network not receiving major upgrades for decades and it has lost its competitiveness to road transport (and also aviation), which are clearly now preferred for both speed and convenience of service.

For North Vietnam, the key development will be a new rail project to Lach Huyen port in northern Haiphong City, which would start at Du Nghia station on the Gia Lam – Haiphong railway between Hanoi and Haiphong.

This new rail link is part of a wider rail investment initiative of nine different projects, which will see the rail network boosted from 2440km to 6354km, collectively expected to cost an estimated VND32.6 trillion ($1.43 billion). Unsurprisingly, VRA has suggested that foreign investment could be needed to bring the projects to successful fruition.

The scale of the challenge in Vietnam to invigorate its rail network for freight is evident and while the plans could prove beneficial if successfully developed, this infrastructure spending is unlikely to generate additional cargo for ports in

the North of the country. There is little logic in container traffic being moved from Haiphong to Central (and Southern) markets when there is already a much higher number of ports in these areas which are already undergoing investment.

The older Haiphong port has 21 wharves offering a total length of 3567m but with water depths ranging between 7.5m and 9.4m, access to higher capacity vessels is constrained.

However, on the positive side the introduction of the Haiphong International Container Terminal (HICT) alleviated the pressure when it opened in mid-2018, with a water depth of 16m and the ability to receive ships in excess of 12,000TEU. With space constraints at HICT, the port authority has now signed a US$310 million contract to construct Terminal 3 and Terminal 4 with Phu Xuan Construction at the 470,000m2 zone in the Lach Huyen port area.

The new facilities are expected to be completed in 2024 and will offer 750m of berthing, with an additional area for handling 160TEU capacity barges. This expansion is part of plans to have six container terminals by 2025 and sufficient capacity to accommodate vessels larger than 8000TEU.

Source: Dataand.com

8 Figure 1: Development of Origin- Destination Container Volumes at Haiphong Port 2014-2021, in ‘000 TEU

8 Figure 2: Split Between North & South Ports in Vietnam 2014-2021, in %

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The Port of Haiphong is situated within the economic triangle areas of Hanoi – Haiphong – Quang Ninh, in northern Vietnam, serving the third most populous city in the country, with more than two million inhabitants in an area of just 1500km2.

The port is also located in Group One, of the Vietnamese government’s six clusters of ports for expansion that collectively represent the focus of the long-term masterplanning process. However, is this port, and any expansion plans, sufficient for the North of Vietnam to meet future demand or is it being marginalised by continued development of ports in the South?

Recent container growth at Haiphong is certainly positive.

As Figure 1 shows, the total origin-destination container throughput in 2014 was almost 1.52 million TEU and continuous increases since have resulted in a 2021 total of just over 2.70 million TEU – reflective of average annual growth of 8.6 per cent over the period.

CENTRAL & SOUTHERN VIETNAM: PORT DEVELOPMENT

UNDER PRESSURE Central and South Vietnam has been a hotbed of container port activity, with the dominant share of national volumes and terminal investments. AJ Keyes assesses if this will continue

8 Gemalink international Container Terminal has added two more cranes to its fleet to keep pace with demand

The Central and South Vietnam container port region dominates activity in the country, outperforming national growth in recent years. Yet double-digit increases mean that terminal infrastructure must keep pace with higher volumes, a tough challenge in any location.

The leading position of Ho Chi Minh in the country is easy to see, based on volume share. Of the sample of port data considered in Figure 1 (which is equivalent to 97 per cent of total country origin-destination traffic), the port handled 88 per cent of all non-transshipment containers in 2021 in the Central and South region of Vietnam, a largely consistent figure over the period.

Indeed, Ho Chi Minh has seen its total origin-destination volumes increase from 3.46 million TEU in 2014 to 6.56 million TEU by the end of 2021, reflecting growth of 9.6 per cent per annum. This compares to annual increases of 10.2 per cent for the Central/South region in total and 9.7 per cent per annum for Vietnam as a whole – Ho Chi Minh clearly remains the driving force of not only Central and South Vietnam, but the country as a whole.

There is major container port infrastructure in this location.

There is the Vietnam International Container Terminal (VICT), in which CMA CGM (47.3 per cent) and Mitsui OSK Lines (15.7 per cent) hold shares in the 700,000TEU per annum facility, while there is also the 500,000TEU per annum Saigon Premier Container Terminal (SPCT), operated by DP World.

HO CHI MINH: LONGSTANDING PLANS There are longstanding plans to expand port capacity in Ho Chi Minh, with up to four different sites recently under consideration, as part of the development plans to 2030. A favoured choice since 2020 has been 250ha on a site next to Long Tau River in Binh Khanh Commune, although ship sizes are reportedly to be limited to 3600TEU. A second option, at a 50ha site next to the Long Tau River in Thanh An commune, was dismissed immediately due to its

26 | MAY 2022

proximity adjacent to a nature reserve and the lack of road connections. While there is 150ha available in Long Hoa Commune where ships up to 10,000TEU could call, but, again, this is problematic as it is near the Can Gio Biosphere Reserve.

The fourth, and seemingly most sensible option is a 100ha deepwater site near Ong Cho Islet, next to Cai Mep port, which has the capability to receive up to 20,000TEU vessels and can support the continuing shift from feeders via Singapore to deepsea direct calls, a key part of the Ho Chi Minh market.

This last option should be regarded as the best location because Cai Mep, which is located approximately 50km south east of the main city area, has been developed on a gradual basis over the course of the past 20 years, after initially starting as a satellite option for the greater Ho Chi Minh city area.

There is also now the Tan Cang-Cai Mep International Terminal operated by Mitsui OSK Lines, with capacity of around 1.8 million TEU per annum and the Gemalink International Container Terminal, which is part of the CMA CGM/Terminal Link global portfolio. Unsurprisingly, this second facility is used almost exclusively by CMA CGM, with deepsea vessels of up to 16,000TEU calling on transpacific routes to/from the US West Coast.

The arrival of another two largescale ship-to-shore gantry units during 2021 brought the crane fleet to eight on Gemalink’s 800m berthing line – supply was from local manufacturer Doosan Vina, a Vietnamese affiliate of the South Korean Doosan Corporation and an outreach of 25 rows across the vessel is possible.

AP Moller Maersk subsidiary, APM Terminals, also has an established facility, located 50km southeast of Hi Chi Minh City. The company retains a 49 per cent stake in Cai Mep International Terminals (CMIT) which offers an annual capacity of almost 1.12 million TEU and can successfully handle vessels with capacities up to 20,000TEU.

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

CENTRAL & SOUTHERN VIETNAM: PORT DEVELOPMENT

CMIT GOING DEEP During Q1 2022, CMIT acquired its sixth Super Post Panamax crane, matching the specification of the existing five units already on site.

One highly important improvement that is planned involves channel dredging to deepen access routes for larger vessels.

Although the water depth alongside the terminal is already at 16.5m, to reach the facility the depth in the approach channel is limited at 14m. This is due to be improved during 2022, as Nguyen Xuan Ky, CMIT General Director confirms: “Deepwater terminals like CMIT and shipping lines highly appreciate the strategic vision and concentrated efforts of the Government/the Ministry of Transport to upgrade the maritime infrastructure, typically Cai Mep channel is expected to be dredged to minimum of 15.5m in Q4 this year. This will create better conditions for the largest vessels currently calling Cai Mep enabling the transport of more Vietnam export cargo in near future.”

8 Ho Chi Minh needs to expand…Cai Mep already has plans

Cai Mep has already handled container ships of 20,000TEU capacity, but tonnage of this size can only call at the port with numerous restrictions with respect to the tide, wind, vessel draught and other traffic activities.

However, there are confirmed works aimed at easing access to the port for increasingly large container ships. The national government is spending US$62 million improving the approach channels for larger vessels by widening from 310m to 350m. Work will be overseen by Vietnam’s Maritime Project Management Board, part of the Ministry of Transport and is scheduled to commence before the end of 2022.

Source: Dataand.com

‘‘

Cai Mep – approach channel improvements are on the agenda to facilitate easier access for high capacity container vessels

routes. This is important for establishing international container transshipment services.”

The proposal further outlines the development of a terminal with the capability of being able to receive the largest container ships in service and to eventually offer annual capacity of 15 million TEU. VIMC expects the project to cost an estimated US$850 million, according to official documents submitted to the Vietnam Government in late March 2022.

There is definite interest in further supporting hinterland access for the Cai Mep port area, with two additional rail routes to/from the marine complex foreseen. However, as outlined on p28-29 there is a strong reliance on foreign investment to bring any rail expansion plans to fruition – which at this time cannot be guaranteed. The Vietnamese Government wants the construction completed and operations commencing by 2030. The bottom line, however, is that it remains to be seen if theory will go into practice regarding the comprehensive expansion of rail capacity.

Ports in Vietnam in the Central and South region process the critical mass of container volume with the northern ports ranked second in this respect. Across the board, however, the ability of these ports is being tested by the general shift of manufacturing from China to Vietnam, which is progressively dictating the need for port and terminal infrastructure and greater water depth to handle the foreseen volume increases moving forward. At the same time, it is to be hoped that the plans laid for the large-scale expansion of rail capacity will be taken up with the resulting much needed improvement in port connectivity.

8 Figure 1: Development of Origin-Destination Container Volumes at Ports in Central/ South Vietnam 20142021, in ‘000 TEU

8 Ho Chi Minh, and nearby Cai Mep, house key container port facilities, but strong recent growth means additional capacity is needed together with the development of new rail capacity

VIMC & MSC PROJECT There are also other noted plans in this port area too. For example, Vietnam Maritime Corporation (VIMC), Saigon Port JSC and Mediterranean Shipping Company (MSC) are seeking to build and operate a new, largescale, modern container terminal in Can Gio district in Ho Chi Minh City.

The Can Gio district is located where the Cai Mep-Thi Vai navigational channel commences, where water depth is greater and access to the international sailing routes is quicker, as endorsed by VIMC which stated the following as part of its proposal submission: “Can Gio is located at the start of the Cai Mep-Thi Vai route, near international shipping

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

MAY 2022 | 27

MULTI-PURPOSE VESSEL OPERATIONS

WEAKENED CONFIDENCE The influence of the Ukraine war on global economic conditions is seen as a significant factor influencing the outlook for the multi-purpose vessel fleet. Felicity Landon reports

Russia’s invasion of Ukraine might not have an immediate, clear impact on multipurpose vessel (MPV) and heavy lift operations but there will be a fallout from reduced global economic confidence, according to Drewry Shipping Consultants.

At a webinar to present Drewry’s MPV fleet and shipping outlook report, Susan Oatway, Senior Analyst, Multipurpose and Breakbulk Shipping, said a protracted conflict in Ukraine, along with harsher sanctions against Russia, will reduce economic confidence further and lead to an additional percentage point off global growth.

“We can see little, if any potential upside [in the MPV sector] at the moment,” she said. “In the shorter term, we expect rates to plateau in 2022. The market is waiting to see what will happen.”

Most MPVs are already booked for the next couple of months “and there is a bit of a hiatus about how global confidence will be, going forward”, said Oatway. “Yet the war in Ukraine has definitely weakened confidence and dented our demand forecast. That said, we do expect [MPV] rates to stay above pre-pandemic rates when they start to settle around 2023.”

Ukraine has “definitely usurped COVID-19” at the top of the list and market uncertainty is one of the biggest drivers of the sector’s outlook in the short to medium term, she said.

However, COVID-19-related supply disruption and lockdowns are also underpinning short-term MPV demand.

Drewry’s multipurpose time charter index indicated that MPV rates fell 0.2 per cent from February to March, to

US$11,170 per day. Over the year to March 2022, rates had leapt by 43 per cent and compared with March 2020 daily rates were up by 78 per cent.

“We expect this weakening trend to continue into April with the index dropping perhaps a further half a percent to $11,100 per day,” said Oatway.

At the end of 2021, she noted, Drewry had been ‘cautiously optimistic’ for the sector, until the events of the past three months.

“It is all to do with uncertainty in the global market – the conflict in Ukraine, new COVID-19 lockdowns in China … they have a multitude of ripple effects coming from them, with the biggest being the change in expectations for the global economy. We see little, if any, upside in our base case scenario.”

8 Newbuilding activity has been quiet but is expected to pick up marginally with greater flexibility incorporated into vessel designs

TRADE DEMAND AND… Translating economic assumptions into trade demand, Oatway noted that global dry cargo (containers, bulk, general cargo including breakbulk and project) demand bounced back over 2021 with a growth of 4.5 per cent, and although that growth is expected to slow over the next two years, an average 3.5 per cent growth per year is likely for 2022 and 2023.

The MPV market share rebounded strongly last year with seven per cent growth – this is expected to slow to nearer four per cent growth in 2022 and 2.5 per cent in 2023 “as the supply chain issues start to unwind”.

“The MPV sector has benefited from that desperate search for space which has resulted in cargoes that were previously

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

MAY 2022 | 29

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MULTI-PURPOSE VESSEL OPERATIONS containerised moving back into MPVs; that effect is expected to weaken over the second half of 2022 and into 2023.”

Drewry used its market share analysis – including how much cargo could be carried by other sectors – to work out the effective demand for the MPV fleet. …SUPPLY PICTURE Turning her attention to supply, Oatway voiced her concern over the age of tonnage in the MPV fleet.

“Almost 60 per cent of the total MPV fleet is over 15 years old. For the simple MPV with lift capability up to only 100 tonnes, the average age is already 20 years. For project carriers/heavy lift capable vessels, it is nearer 16 years.”

In all MPV types there were bulges of newbuilding deliveries between 2007 and 2013, whereas there have been a “lack of any real delivery volumes over the last three to four years”, she said. This was particularly notable in the project carrier/heavy lift vessel category with 100-250 tonnes lift capability.

“This means that the current orderbook is comparable to less than four per cent of the operating fleet. Less than half a million DWT in total was added in 2021. This sector remains underfunded in terms of newbuilding, development and investment.”

Newbuilding slots are still at a premium as the yards are full of container ship tonnage, said Oatway. “Although the short-term outlook remains weak, we expect newbuildings to pick up marginally post-2023, when the space is available and the need for more eco-conscious vessels will probably become more pressing.”

Scrapping remained at rock bottom in 2021 – confined to

‘‘

It is all to do with uncertainty in the global market – the conflict in Ukraine, new COVID-19 lockdowns in China… the ripple effects smaller vessels, with no heavy lift capable vessels scrapped last year, she noted. “However, we do expect the numbers to rise after this year as the current charter market boom starts to weaken and as regulations around decarbonisation start to take effect.”

BROAD PERSPECTIVE Considering the future outlook, Oatway said a ceasefire and Russian withdrawal from Ukraine could be an upside to improve the picture but was highly unlikely in the short term.

“The downside is that a protracted conflict in Ukraine leads to harsher sanctions against Russia and reduced economic confidence.”

Increasing commodity prices means less investment for new projects, she said, while weaker demand would mean more competition for cargo and associated oversupply of tonnage in competing shipping sectors.

The competition for general cargo is expected to be back to pre-pandemic levels during 2023. Period charter rates are expected to peak in the first half of this year, before weakening in the second half 2022 and in 2023.

The Key Discussion Points: Ukraine Centre Stage In the Q&A session at the end of Oatway’s presentation, the Ukraine conflict was the key discussion point. Asked about the impact of the conflict and sanctions on the MPV market and trading patterns, Oatway said: “MPVs are not massively affected in the Black Sea shortsea trades – but the impact of suppliers finding other sources will inevitably mean changing trade patterns.

“More significant is the bulk carrier sector – and in particular grain to developing nations. As new sources are found, there will be increased tonne-mile demand for these vessels, so removing them from breakbulk competition.

On the other side, though, is that as the conflict continues, confidence is eroded. Clearly, demand for grain remains but for consumer items it is possible there will be some weakness in demand – mitigating any positive demand increase due to new trade routes.”

Another factor in the supply/demand mix is the approaching deadline for the IMO’s Energy Efficiency Existing Ship Index (EXII) regulations, which are expected to drive more ship demolitions.

IMO’s MEPC 76 requirements From 2023, the IMO’s MEPC 76 requires all vessels to calculate an EEXI and Carbon Intensity Indicator (CII). Drewry has calculated that 15 per cent of MPV capacity could be non-compliant with EEXI regulations.

“All ships, irrespective of the built year, are required to calculate their EEXI following technical means to improve their energy efficiency,” noted Oatway. “We have had discussions with several operators; in practice, what this means is that the vast majority of the fleet is already running at slower speeds than their original design. However, our analysis discovered that some 15 per cent of MPV capacity could be noncompliant with EEXI regulations and so we would expect some decrease in operations across the fleet. We expect some rise in demolitions, and our forecast takes this into account.”

Offshore wind positives A key positive for the MPV and heavy lift sector is the booming offshore wind sector. Drewry expects this boom to continue, said Oatway. Tracking of database and other analysis showed a 31

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

per cent increase in seaborne trade for offshore wind projects in 2021 and that is only going to increase, she said. The Global Wind Energy Council (GWEC)’s recent report predicted a 6.6 per cent CAGR (compound annual growth rate) for global wind power for the next five years, based on commitments from COP26 and growing energy security concerns triggered by the conflict in Ukraine. “This latter point could also mean an increase in oil and gas investment, which is also boosted by the rising oil price,” said Oatway. “However, the push to offshore wind is definitely happening and that sector is definitely one of the highlights for MPV market project carriers going forward.”

More flexibility in vessel design She also tackled reports of new entrants into the market and MPV owners diversifying. “MPV owners with money to invest are clearly building vessels for the future,” she said. “This is not just about making the new vessels more ‘eco-conscious’ with regards to fuel and emissions – it is also about making them more flexible so that they can carry a wider variety of cargoes, especially the larger heavier projects.”

MAY 2022 | 31

BRAZIL: TERMINAL CONCESSION

STS10 RIVALRY HOTS UP There are two schools of thought about the role of the forthcoming STS10 terminal concession in Santos, Brazil – an ECSA hub or another terminal to promote greater competition.

Rob Ward examines the arguments

8 Fears of a monopoly have resulted in Maersk and MSC, partners in the BTP terminal in Santos, being excluded from bidding as a joint entity for the new STS10 container terminal concession

The “Talk of the Town” at the recent Intermodal South America trade show, held in Sao Paulo, was: Who will compete for and who will win the bid for the STS10 site?

This is the prime area in Santos that will be concessioned out for a new Reais3.3billion (US$703.4million) container terminal, scheduled for the third quarter of this year?

Just over a year ago it seemed that the biggest container handler in Santos today, BTP (a joint venture between APM Terminals and TIL), would win the bid and spread its operations into the neighbouring areas - which used to be operated by the Deicmar car terminal, the Citrosuco fruit terminal, Termares, and the currently operating ro-ro and general cargo terminal Ecoporto. The latter entity was of course formerly known as Tecondi, the one-time thirdlargest box terminal in Santos, with a 19 per cent market share and 500,000TEU handled in 2013 but now, in its new guise, down to just a handful of boxes and a mere 0.5 per cent of the market.

However, these assumptions were blown out of the water by the concerted efforts of rival port terminals (such as Santos Brasil across the channel in Guaruja) and concerned associations such as ABTP (the Association of Brazilian Ports and Terminals) and Abtra (the Brazilian Association of Bonded Port Terminals), who do not want to see a quasi-monopoly developing in the port.

Over the past year they collectively lobbied the Brazilian state monopoly watchdog, Cade, to do something to stop a further concentration of terminal ownership, arguing that a successful BTP bid could see its share of Santos throughput (totalling 43.7 per cent of 4.83 million TEU in 2021) ramp up to

32 | MAY 2022

as much as 80 per cent. The other two terminals, Santos Brasil and DP World Santos, accounted for market shares of 35.6 per cent and 20 per cent respectively in 2021.

There are also fears among shippers in Brazil that the “Verticalisation” process, which has seen shipping lines, namely Maersk Line and MSC, add logistics services and port terminal operations to their roster – MSC at Portonave in Santa Catarina and Multi-Rio in Rio de Janeiro, and then Maersk Line with APM Terminals Itajai, Itapoa and Pecem, plus BTP of course – is making them too powerful.

Flavia Takafashi, a director at Antaq (the powerful National body for waterborne transport), told Valor newspaper recently that during recent “skipped calls/rollovers” by shipping lines, they seemed to be favouring those port terminals in which they had an equity interest against those “white flag” terminals without such connections.

Cade quickly reached a decision to ban BTP from bidding for STS10 but is still allowing the stevedoring arms of its two shareholders – Terminal Investment Limited (MSC) and APM Terminals (Maersk Line) – to bid separately. Abtra is still crying “foul” and continues lobbying Cade to stop TIL and APMT bidding altogether, and also, even louder, for a two-orthree year delay in the process, which would suit Abtra members such as Ecoporto Santos and Bandeirantes/ Deicmar whose contracts are due to expire in 2023.

CAPACITY AND HUB PORT ISSUES Angelino Caputo, Executive President, Abtra, tells Port Strategy that BTP, which he says has the support of the Santos Port Authority (SPA), is under-estimating the current

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

BRAZIL: TERMINAL CONCESSION container capacity in Santos and that the rush to push for new capacity is being engineered purely by political interests.

“We do not believe the tender is as urgent as SPA says it is, but it has been steamrollered ahead because the Infrastructure Minister Tarcisio Gomes de Freitas [he has since been replaced by Marcelo Sampaio, as De Freitas steps forward to stand for Sao Paulo State Governor] wants to leave a legacy,” suggests Caputo, reflecting the views of his 43 members. “They are claiming that the tender is urgent because Santos is close to its capacity, which it is not. They claim it is 5.3 million TEU per year, but it is 6.0 million TEU and it will soon be 6.8 million TEU, so there is no need to rush.”

Capacities are disputed by the two sides, but one shipping agent put it at between 5.7 million TEU and 6.0 million TEU, with the higher figure including Ecoporto Santos which still has three ship-to-shore gantry cranes in situ, and could still accommodate one or two cabotage services thereby adding an extra 300,000TEU if the demand is there. Although BTP has been operating close to its capacity (estimated at around 2.0 million TEU, annually) Santos Brasil (2.5 million TEU) and DP World (1.2 million TEU) reportedly still have some space to spare.

Also, it is worth noting in this context Minfra’s (Infrastructure Ministry) and SPA’s fears that the recent exponential increases of boxes through Santos, which was up 14.2 per cent last year, may not be repeated this year or next with the Brazilian economy struggling. The first two months of this year saw only 754,600TEU handled, down 1.1 per cent compared with the first two months of last year.

Caputo, who was once President of SPA (from 2014 to 2015) says that the “Verticalists” – as he calls the MSC and Maersk brands, as they have added trucking and other inland logistics to their portfolios in Brazil – currently have between 40-42 per cent of the Santos market, via BTP. This will, however, rocket to between 75-80 per cent if either one wins STS10, as it will add an extra 2.5 million TEU. That will be “too close to a monopoly” which will lead to shippers “paying much higher prices”, he argues.

The SPA, Minfra, De Freitas and BTP factions – backed by the Rio de Janeiro Abratec container port association, which used to support Santos Brasil and the anti-Verticalists but switched sides – say the competition is not just within Santos but also with other ports but Caputo argues that some Sao Paulo shippers already ship their containers from the nearby states of Parana (TCP in Paranagua) and Santa Catarina

‘‘

…who will win the bid for the STS10 site, the prime area in Santos that will be concessioned out for a new container terminal? (namely ports of Itapoa and Itajai), but they incur “significant extra trucking costs”. Those supporting the Verticalists also argue that if Santos is to achieve its ambition to become THE hub port for the East Coast of South America (ECSA) it will need to possess a very large terminal with a deep draft so that the next generation of vessels (upwards of 14,000TEU capacity in Brazil’s case) can be accommodated.

“I think the best solution here is to allow BTP to move into the STS10 area and also allow Santos Brasil to expand its yard, thereby giving Santos two large terminals instead of four medium sized ones which would build in inefficiencies with cabotage having to double and treble dip when calling,” said one Sao Paulo based consultant. “An STS10 without MSC or Maersk involvement would impede plans for Santos to become the ECSA hub. With the claim that rollovers worked against White Flag operators, I think that was more to do with operational difficulties, not favouritism.”

Executives for BTP and APMT were contacted several times across a two-week period, and in person at the Intermodal South America conference, to provide their views to Port Strategy but did not respond by the time the magazine went to press.

RIVALRY HOTTING UP One veteran shipping agent based in Santos, who has no axe to grind, notes that animosity is growing between the two factions and that a wave of public consultations held in Santos throughout March and April have only added to the rancour.

“I can see it from both sides. If Santos wants to be a hub port then it makes sense to have just two big terminals, but if you want proper competition then it is better to have a new operator winning STS10, such as PSA, ICTSI or China Merchants, who are said to be interested,” said the shipping agent. “If they are going to publish the tender document before the Presidential elections in October, they will need to get a move on.”

8 STS10 – another terminal to promote greater competition together with terminals like the one operated by DP World (pictured) or combining with an existing terminal to bid for ECSA hub status?

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

MAY 2022 | 33

BRAZIL: PORT CONCESSION TEST CASE

8 The recent privatisation of the port management body of the port of Vitoria is seen as a test case foreshadowing the further roll out of the strategy across diverse port authorities including Santos

VITORIA MODEL LAUNCHED The port management body for port Vitoria has been privatised. As Rob Ward explains it represents a test case for similar privatisations to come including for Santos After several years of planning, Brazil’s Infrastructure Ministry (MINFRA) has finally “sold off” control of one of its federal owned Companhias Docas (port authorities) in the guise of Codesa, the entity that has run the port of Vitoria, in Esipirito Santo state (just to the north of Rio de Janeiro), for the past 30 years.

The winning bidder is the Quadra Capital investment fund which beat off the Beira Mar consortium, formed by Serveng and Vinci Partners. The latter is the company that recently acquired the rights to develop the Pontal de Parana greenfield box terminal project near Paranagua.

Quadra bid Reais106million (US$22.6 million) for Companhias Docas, Reais5m more than its rivals, and for this it gets to manage port Vitoria for the next 35 years, with a commitment to invest Reais850m over that time-span, covering infrastructure, equipment and an expansion project. Throughput is expected to rise from seven million to 14 million tons per annum.

Vitoria today includes the TVV box terminal, now in the hands of MSC after it bought the facility from Brazilian carrier Log-In last year. It handled 184,600 containers during 2021 (up four per cent) and 811,000 tons of general

34 | MAY 2022

‘‘

This privatisation is seen as a forerunner to the tender process for other port management bodies cargo (up 59 per cent), and received two new mobile harbour cranes in January 2022.

Commodities regularly handled at Vitoria include: coffee, granite, pig iron, steel products, sugar, wood pulp, cars, malt and fertilisers.

All the port’s cargo handling facilities have recently benefitted from extensive maintenance dredging which has facilitated a return to providing access to vessels requiring a draft in excess of 12.5m. The dredging work, which was initiated in late December 2021, covered the access channel, the turning basin and alongside the various berths on the banks of the Vitoria and Vila Velha (Capuaba).

SHAPE OF THINGS TO COME This privatisation is seen as a forerunner to the tender process for other Companhias Docas, including the “Jewel in the Crown,” Santos: which is also set to host a tender for a huge new 2.5 million TEU capacity container

terminal (see main story), the STS10.

However, various commentators from a multiplicity of interest groups are proclaiming that Santos is a very different beast from Vitoria and if the “complexities of such a sale” are not ironed out “total chaos” could ensue, during the Santos tender.

Jesualdo Silva, CEO of the Association of Brazilian Ports and Terminals (ABTP), one of the most respected of all port associations in the country (especially under the helm of veteran President Wilen Manteli), says that all Brazil will be watching Vitoria over the next year, but he does not think its model applies to Santos.

“After the auction of Codesa, the model that inserts a monopolist private entity as ‘port manager’ will be put to the test if applied to Santos,” highlights Silva. “It is essential that the legal security of the business sector is a top priority as the government must protect the large number of economically active companies already with contracts from possible future abuses by the future monopolist.”

Other Brazilian ports – including Itajai and Sao Sebastiao - are also lined up for privatisation of their port authorities but the modelling for those will be different, various sources told Port Strategy.

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

CONTAINER HANDLING

THE MANAUS YO-YO SPINS… Superterminais has stepped up the battle for market share in Manaus, the Amazon port city, with the implementation of a new investment plan. Rob Ward reports Against a background of political, covid and economic uncertainty in Brazil, and a Yo-Yo-ing rise and fall in volumes over the past decade, the Superterminais container terminal in Manaus, the city of 2.65million people in the middle of the Amazon jungle, is pushing ahead with its expansion and investment plan.

One of only two box terminals in Manaus – its bitter rival Porto Chibatão occupies the site adjacent to it – the switch of one service can have a dramatic effect on the fortunes of one or the other in the battle for market share. Overall volumes in the jungle city have fluctuated between 440,000 and 700,000 TEU over the past 10 years serving to up the competitive mix.

Management at Porto Chibatão has used a legion of lawyers over several years to try and stop the Superterminais’ expansion plan but the project was finally put into action from November of last year with final details added in recent months, according to Julio Almeida, Commercial Manager, Superterminais.

Superterminais, which handled 126,652 TEU in 2021 (about 11.93 per cent more than the previous year, according to Antaq, the Brazilian waterways regulatory body), has been an ever-present operator on the Rio Negro (which feeds into the Amazon River system) since the firm was founded back in the early 1990s.

‘‘

The Manaus ZFM is picking up and container throughput is hitting record numbers In 2021 Porto Chibatão, part of the Grupo Chibatão transport group, handled an impressive 624,484TEU (7.21 per cent over 2020 and 83 per cent of Manaus overall volume of 751,136TEU, a record haul). Yet as recently as 2017 there was a 51.8 per cent; 49.2 per cent split, in Chibatão’s favour, with the Manaus total that year just 521,530TEU. The Manaus Free Trade Zone (ZFM) is the engine that generates massive imports into the region, mostly of components and raw materials which are then turned into white goods, TV’s, motorcycles, etc, for re-export to the populous south of Brazil and/or other South American consumers.

SUPERTERMINAIS INVESTMENT PLAN Superterminais has ordered three Konecranes GHPT 8500s with a boom of 74 metres, a vast improvement on the five Liebherr FCCs, which have a boom of just 37 metres and lifting capacity of 25t. It also operates Kalmar reach stackers and top loaders and handles project cargo as well as containers, with BBC Chartering a regular caller. The depth alongside is an incredible 40m during the rainy season and 25m during the so-called “dry season” [hence the need for floating pontoons], but ships are restricted to an 11.5m draft due to lesser depths downriver.

Almeida explains that Superterminais’s new cranes will be delivered in stages, with the first shipment arriving in July. He adds that the three cranes will be assembled between

October and December so that they are ready to be deployed in January of next year, by which time he hopes a new service will be added to the rostrum.

“It is all part of our Reais200m (US$43m) total investment plan for new cranes, reach stackers, terminal tractors and new floating pontoons,” Almeida told Port Strategy. “It is also part of our policy to increase capacity and bring in new services,” he explained. He says that capacity will increase to around 260,000TEU per annum, and hopes that the Yo-Yo can swing back in favour of Superterminais.

Given that Superterminais does not at present have any coastal or cabotage services and its rival has several (Mercosul Line, Log-in Logistica and Alianca Navegacao), the most likely services to jump ship – from Porto Chibatão – will be those of Log-In which is now controlled by MSC Line, which participates in a weekly deep-sea service to the Far East (Via Panama) along with ONE. Mitsui OSK Line (the old MOL and part of the merged trio that form ONE), has always been the dominant player in Manaus for Far East trades, and ONE today has a weekly service to Asia, with transshipment in Panama, with MSC chartering slots.

CMA CGM and Maersk/Hamburg Sud dominate the box movements out of Porto Chibatão, the former with its Brazex service to the Caribbean with transshipment to the Far East and the latter with transshipment via Santos, using its Alianca shuttle services as a feeder.

“After a blip, four years ago, the Manaus ZFM is picking up again and container throughput is hitting record numbers,” said one veteran executive of a shipping agency with interests in the Amazonas box trades. “More capacity is needed so Superterminais’s move to add some is a shrewd one.”

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

8 Porto Chibatão is currently ‘top dog’ in terms of box handling but Superterminais is looking to expand market share with a boost from its new investment programme

MAY 2022 | 35

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INTERMODAL SOUTH AMERICA NEWS

INTERMODAL SOUTH AMERICA: BACK IN BUSINESS The Intermodal South America (ISA) trade show returned to the stage this year, after a three-year absence and exceeded all expectations, according to the organisers as well as dozens of attendees interviewed by Port Strategy.

Hermano do Amaral Pinto Junior, Business Director for Informa markets Brazil, said that around 22,000 people attended the 26th edition of ISA which, despite hosting almost no participants from China [which usually make up around 20% of the Expo], was only around 34 per cent less than the record number of 36,000 back in 2019.

“Up until the week before we only had 12,000 paid registrations so we were somewhat worried,” said Pinto, “but then we had 1000s of new registrations at the last minute, much to our relief. During the absence of a physical Intermodal show many people, and especially freight forwarders, have been very supportive of our efforts to bring this event back.

People have been so grateful and happy to be together again, and we have provided the opportunity for contacts and deals to be made and for the government to outline its privatisation and infrastructure plans, such as the Green Line project.”

The keynote speech at the IM came from Tarcisio Gomes de Freitas, the Infrastructure Minister, who is pushing hard a privatisation programme in the transport sector (especially ports and port authorities: see preceding articles). ““Brazil will increasingly become a multimodal country, more and more efficient from a logistical point of view,” he confidently told those gathered.

“We expect participation of the rail mode of transport to grow from 20 to 40 per cent by the year 2035.”

Running concurrently with ISA was the 25th National Conference on Logistics which also focussed on logistics developments in Brazil.

Several attendees expressed their “absolute delight” that ISA

was up and running again as it gave them a “one shop stop” to see dozens of clients face to face after the three-year hiatus, as “Zoom meetings are just not the same”.

Marcelo Goncalves, the Kalmar director for Latin America Mobile Equipment Sales, further emphasised this. “This trade show is mostly for renewing

8 Intermodal South America back in business after a two-year absence

contacts and meeting people face-to-face. Most of our customers are here and they are keen to talk about their future plans and if Reporto is brought back, as we expect, then more orders will be made,” he told Port Strategy at the show.

APMT Itajai Develops the Ro-Ro Option…

APM Terminals Itajai, which has been losing container volume and market share to Portonave, its rival across the River Itajai Acu, and also to Porto Itapoa, some 90 km away, is turning to ro-ro as a way of bolstering its bottom line.

The Florida Highway, operated

by K Line, called at the south Brazilian terminal in mid-March, and it unloaded 460 high value BMW cars, the first in Itajai for nearly three years.

“We now have a monthly service from K Line and we are going to see more and more general cargo at our terminal this year,” said Aristides Junior, the CEO for APMT Itajai.

APM Itajai handled 528,000TEU in 2021, down 4.5 per cent from the 553,000TEU total in 2020. In the first two months of this year it handled just 58,000TEU, down 26.3 per cent from the 78,812TEU for same period in 2021.

Portonave Plots A Growth Path On the other side of the River Itajai-Acu, the Portonave terminal, which now sits in the MSC/TIL portfolio, highlights its recent progress. It achieved a 1.1 million TEU throughput in 2021, a notable 29 per cent increase.

Talking to Port Strategy at the company’s stand at the Intermodal South America trade show, Rodrigo Lopes, Commercial Manager, Portonave, told us that last year was an outstanding one mainly because of its strategy of targeting new business from Sao Paulo (Brazil’s financial and industrial heartland), where many shippers had been having problems with congestion out of the port of Santos.

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

“The congestion in Santos has played into our hands for sure,” said Lopes. “We brought in a lot of frozen meat, auto parts, CKDs and fruit exporters [oranges and lemons mainly] from the Sao Paulo region. This year, however, we are only forecasting an increase of 5.8 per cent as we are facing our own capacity restrictions.”

If not for these restrictions Lopes believes Portonave could post another increase of between 15 and 20 per cent. He notes, however, that with new adjacent land bought measures were now being taken to double terminal capacity to well over 2m TEU per annum by the year 2026.

BRIEFS IMETAME launch

Yet another new port project, specialising in containers but including general cargo, dry and liquid bulk facilities, was launched at Intermodal South America. Imetame Porto Aracruz, located only 55 miles from the port of Vitoria, splashed out on its own sizeable stand to launch its arrival on the port scene and reports it is constructing a breakwater for the new deep-water port with container operations scheduled to start in 2024.

Pecem JV

The Pecem Industrial and Port Complex and Stolthaven Terminals (part of the Stolt-Nielsen group) are setting up a joint venture with the Port of Rotterdam, for a new storage terminal in the port of Pecem to handle green hydrogen and associated products. Located in the north of Brazil, Pecem is seen to offer great potential for generating wind and solar energy.

Diversification

Ecoporto in Santos (which used to handle some 500,000TEU back in 2013 but now just a very small box volume) has become a leader in LCL cargoes and warehousing and hosts regular break bulk calls from Grimaldi ships. Similarly, DP World, Santos has recently added handling cellulose in breakbulk vessels to its operations.

Bulk Alternative

Worldwide container shortages, accentuated in Brazil, have led the Ponta do Felix private port in Antonina (part of the Paranagua port complex) to switch to exporting wood pellets in bulk rather than in boxes. The increased cost of container transportation was also a catalyst to this course of action.

MAY 2022 | 37

BRAZIL: EQUIPMENT SUBSIDY The reinstatement of the Reporto tax exemption scheme for imported rail and port equipment, announced shortly after the closure of Intermodal South America 2022 (ISA), provided a welcome boost to the equipment supply sector. It opens the door to the confirmation of many provisional orders taken at ISA. Kalmar, Liebherr and Konecranes had, for example, intimated during the Sao Paulo show that several new contracts would only be signed after a final decision was made in Brasilia on Reporto.

Reporto legislation rules that all port and railroad equipment imported into Brazil will be exempt from various taxes, sometimes totalling up to 45 per cent of the cost of the ship to shore gantry cranes, reach stackers, RTGs, terminal tractors, etc, etc. It had not been functioning since December 2020 but now makes a welcome return in 2022.

The rationale underpinning its introduction is that due to the effects of Covid and more recently the war in Ukraine, and notably the slowing of the local and international economies, it is seen as an essential measure to stimulate the purchases of port and rail equipment which, in turn, will help reduce logistics costs.

Renato Macedo, Director General for TFD, the main agent for Konecranes in Brazil, typifies the delight of the systems supply sector:

REPORTO TAX EXEMPTION MEASURE REINSTATED

“TFD Brasil is delighted that the Brazilian Government has re-introduced the Reporto benefit for our Port sector, as we believe this action will enable all our customers to continue increasing and renewing their

8 Reporto tax exemption measures for cargo handling equipment back in action again

equipment fleets so that Brazilian Ports continue their role in helping our economic growth,” he told Port Strategy.

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38 | MAY 2022

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

BRAZIL: FERTILISER TRADE

UKRAINE WAR POSES CHALLENGES FOR THE FERTILISER SECTOR Brazil’s Agro-Industry aims to “Feed the World” but the Russian invasion of Ukraine, on the other side of the world, has created major headaches for importing fertilisers which are vital to the agricultural businesses that drive the Brazilian economy: including soya and grain producers as well as beef and chicken exporters.

Brazil imports 20 per cent of its fertilisers from Russia and although embargoes are not affecting this trade so far, traders face the reality of shortages of supply and spiking of prices. Since the war broke out the price of urea (a nitrogen-based fertiliser compound) has risen 75 per cent to $965 per ton, at Brazilian ports.

Jose Bechara, Director, Litoral, a trading company operating out of Sao Francisco do Sul (SFDS), notes that prices have indeed “gone through the roof”. “We assist with the trucking to the farmers and the prices have been rising rapidly since the war started,” he says.

The ports of SFDS, Santos and Itaqui, in the far north, are taking measures to increase port

capacity for fertiliser imports as agroindustrialists endeavour to import more now before the shortages really kick in. Cleverton Vieira, President of the port of SFDS, reports that in February it imported 400,000 tonnes of fertilisers, 300 per cent more than in the same month last year. Growing agro exports had already led the port of Itaqui to build a new fertiliser terminal, which will open shortly.

8 Brazil fertiliser trade impacted by Russia’s war with Ukraine

For the longer term, in March this year Brazil launched a plan to reduce the share of fertiliser it sources from imports. The plan identifies different scenarios to reduce nitrogen, phosphates and potash imports dependency by 2050.

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

MAY 2022 | 39

CONTAINER TRADE ANALYSIS

EURO’ BOX TRADES ASSESSED* The diverging macroeconomic and demographic outlook of global regions can provide an indicative but valuable outline of the growth and direction of European container trade lanes

ORIGIN-DESTINATION MATRIX The methodology to forecast major European container trade lanes can be split into several steps. Firstly, an origindestination (OD) matrix is constructed for the base year 2020 containing seaborne container trade across seven large global regions (Table 1). As this data is not readily available except for a select number of key trade routes – it is constructed by Royal HaskoningDHV based on data from Clarksons and UN Comtrade.

Secondly, future imports and exports for all seven regions are based on regression analysis and used in the forecast horizon of 2020 to 2040. This second step provides the row totals and column totals of the future OD-matrices. Thirdly, the RAS method is used to estimate future bilateral trade relations in the OD-matrices of the years 2025, 2030, 2035 and 2040. The RAS method is a well-known method for data reconciliation in supply-use or input-output tables of an economy, but it has other applications as well. Finally, average maritime distances for all bilateral trade relations in the OD-matrix are estimated in order to calculate TEU-miles for all trade routes.

EUROPEAN TRADE LANES As a result of diverging economic and demographic prospects between global regions, the gradual shift of European trade partners from the West (North America) to the East (Asia) is expected to continue going forward. The Europe - Far East trade lane is expected to grow robustly in both ways (Figure 2). However, the Europe – North America trade lane shows a diverging pattern for the two directions (Figure 3). North America imports and European exports are expected to grow significantly stronger than the other way around. This is due to, among other factors, slower population growth, and hence consumption, on the European side of the Atlantic. As a result, the North America – Europe trade lane is expected to remain at the same volume going forward.

The expected growth of TEU-miles on European trade lanes is slightly higher than the expected growth of TEUs’. *This article highlights the main findings of a new study from Royal HaskoningDHV into the future of European container trade with the study’s author, Michiel Verduijn, Economist at Royal HaskoningDHV, debuting the findings on an exclusive basis with Port Strategy

40 | MAY 2022

Source: RHDHV

During the last two decades, there has been a steady shift regarding European container trade partners from the West (North America) to the East (Asia). The results of a new study from Royal HaskoningDHV, The Future of European Container Trade, show that this trend is likely to continue over the next two decades. Overall, European container trade is expected to grow by 2.8% per year (CAGR) between 2020 and 2040. However, the various European trade lanes are expected to show significantly different growth trends.

European container trade with North America and the intra-European container trade are expected to grow much slower than container trade with Africa, the Middle East/ India and the Far East (Figure 1). Two alternative scenarios on ‘nearshoring’ and a ‘trade war’ show that growth of several European container trade lanes is subject to downside risks.

8 Figure 1. European Seaborne Container Trade Growth by Trade Corridor 2020-2040

The key reason for this development is the strong growth of the Asian market and the fact that the average nautical distance between Europe and Asia is relatively large. As a result of this, the average number of miles per TEU on European trade is expected to increase marginally over the next two decades in RHDHV’s base case scenario.

SCENARIOS: NEAR SHORING AND TRADE WAR Two alternative scenarios have been conducted. Firstly, in a ‘nearshoring’ scenario the share of intra-regional trade over total trade – which is used as a proxy for the extent of nearshoring – will grow faster compared to the baseline scenario. There are many different reasons why nearshoring could increase going forward. These include rising wages in emerging economies, which makes outsourcing into these countries less attractive, or the fear of logistic disruptions like the Suez blockage in 2021. In the ‘nearshoring’ scenario it is assumed that the share of intra-regional trade over total

‘‘

Two trade scenarios are set out: near shoring and trade war trade will continue the growth path as seen between 2008 and 2020. In the baseline scenario, this share remains stable between 2020 and 2040.

It is assumed that the total world container trade in the OD-matrix will remain the same as in the baseline scenario, which implies that inter-regional trade must grow slower than in the baseline scenario.

Secondly, in a ‘trade war’ scenario the growth of bilateral trade between Europe and the Far East (both ways) and the US and the Far East (both ways) is reduced by 50 per cent compared to the base case scenario. Again, there are many different reasons why a trade war could arise, including the current war in Ukraine. At this stage, it is difficult to assess the

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

CONTAINER TRADE ANALYSIS

Exports

North America Europe Far East ME / ISC* Latin America Africa Oceania Total

North America Europe 5.2 2.7 5.0 13.3 20.2 15.8 1.4 2.9 2.1 2.1 0.1 1.1 0.2 0.2 34.2 38.1

Far East 7.3 8.2 59.4 2.7 2.4 1.7 1.5 83.2

8 Table 1. OD-matrix seaborne container trade (2020, mln TEU, full)

Latin America Africa 2.6 0.4 2.1 2.3 3.9 3.3 0.1 0.6 1.6 0.6 0.0 1.6 0.0 0.1 10.3 8.9

Oceania 0.3 0.6 2.8 0.1 0.1 0.0 0.2 4.1

Total 20.0 35.5 112.2 9.5 9.9 5.2 2.4 194.6

Source: RHDHV, derived from Clarksons and UN Comtrade data. * Middle East & Indian subcontinent.

Source: RHDHV

long-term impact of the war in Ukraine. That said, if it would escalate into a trade war between the Far East and the US/ Europe, this would definitely have consequences for container trade lanes. In the ‘trade war’ scenario it is assumed that the total world container trade in the OD-matrix will remain the same as in the baseline scenario, which implies that other trade relations will grow stronger than in the baseline scenario as a substitution effect.

Both in the nearshoring scenario and in the trade war scenario, the growth of TEU-miles on European trade lanes will be lower than the growth of TEUs’. The key reason for this is the fact that intra-regional trade connections have shorter sea distances than inter-regional connections (nearshoring) and low growth of long-distance Europe-Far East trade (trade war). As a result, the average number of miles per TEU is expected to drop in both scenarios (Figure 4).

Imports ME / ISC 1.5 4.0 6.8 1.8 1.1 0.6 0.2 15.9

8 Figure 2. Europe – Far East trade lane

‘‘

8 Figure 3. Europe – North America trade lane

Source: RHDHV

STAKEHOLDER IMPLICATIONS The growth and direction of European container trade can determine the investment decisions of the main stakeholders in this sector: port authorities, shipping lines and shipbuilders.

The expected growth of European container trade of 2.8 per cent per year until 2040 shows the need to expand container capacity going forward.

Especially for shipping lines and shipbuilders, the expected continuation of the gradual shift of European trade partners from the West (North America) to the East (Asia) will have additional consequences. In the base case scenario, one can expect strong demand for additional services on European trade lanes with Southeast Asia, the Indian subcontinent and Africa. This will not only have implications on the network optimisation of these shipping lines but potentially also on the average vessel size deployed on European trade lanes. Currently, the largest vessels (17,000TEU – 24,000TEU) are mainly deployed on the EuropeFar East trade lane (Clarksons, Container Intelligence Quarterly 2022Q1) due to stronger economies of scale at higher sailing distances. The relatively robust growth forecast of European trade with regions that are geographically far away will increase the demand for deployment of these very large vessels.This effect will be mitigated in case of significant nearshoring or as a result of a trade war between Europe/US and the Far East.

Source: RHDHV

The expected growth of European container trade of 2.8 per cent per year up until 2040 shows the need to expand container capacity going forward

8 Figure 4. European container trade – average miles per TEU

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

MAY 2022 | 41

BULK HANDLING

GRAIN: SYSTEM INNOVATION Grain handling and storage system innovation continues apace. John Bensalhia highlights recent developments in the supply sector

8 The Tilbury Grain Terminal facilities are in the final stages of a comprehensive upgrade

The international grain trades face a new challenging era as highlighted in the earlier article in this issue, Grain a Price to Pay for Conflict. While, however, there are significant structural changes underway at an international trading level, suppliers of grain handling and storage systems continue to innovate in order to meet the latest customer requirements in terms of performance, durability, operational cost and the new eco-conscious era.

The companies highlighted below have all recently made Port Strategy aware of advances in one or more of these respects and insight is provided into their recent activities by way of signposting the ‘direction of travel’ of the grain and allied products system supply sector. The range of products discussed is diverse as is the scope of recent project work.

BEDESCHI: BUSY WITH R&D AND ORDERS Italy-based Bedeschi, a versatile supplier of bulk handling systems across a range of commodities, highlights the application of pipe conveyor technology to the grain handling business as a most beneficial development. Lodovico Bernardi, Sales Director Asia Pacific & Grain Key Account, Bedeschi, underlines: “This kind of conveyor allows for dust free operations (the product completely sealed by the rubber belt) and also has the big advantage of being cost-effective as a result of requiring fewer sections and supporting steel structures resulting in a much lower weight compared to a standard belt conveyor. The technology also removes the need for transfer towers, not necessary to achieve changes of height or direction of the conveyor – another cost-effective measure.

Two other areas of design activity that Bernardi highlights are knowledge transfer from handling other bulk commodities into the grain sector and the automation of vessel loading and unloading operations. In the former

42 | MAY 2022

respect he notes: “Our effort focuses on exploiting our experience with different materials and applying solutions developed for other Industries to grains & oilseeds and vice versa.”

On the automation of vessel loading and unloading he states that this is an area of great potential effectively unlocked due to the new generation of sensors and 3D scanning systems. “The technology is ready,” he stresses, “but the challenge is to ,create a system at the same time which is reliable and cost effective: Artificial Intelligence (AI),” he suggests, “may play a crucial role in reaching this target.”

In project terms Bernardi cites a busy order book. “In the last six months,” he explains, “we have commissioned a shiploader project for a major grain terminal on the Mississippi River in Louisiana (USA), and are currently working on another one in the same area. We are also completing two shipunloader projects able to operate with both grains or meals, one is in the UK and the other in Israel.”

The latter project also included the supply of three ecohoppers to Ashdod Port.

At Renova Plant, Rosario, Argentina Bedeschi installed what it claims is the largest pipe conveyor ever commissioned for grains and oilseed, with a capacity of 1500 t/h and 700m length for soya beans. Additionally, at Westwego, a New Orleans area grain terminal, the company has installed a ship loading system.

BRUKS SIWERTELL: R&D PROGRAMME Siwertell has undertaken a research and development programme with the aim of improving the lifetime of the vertical screw conveyor. Per Hansson, Sales Director, Bruks Siwertell, explains that as well as delivering performance enhancing product improvements, the purpose of the programme was to make the process of producing the

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

BULK HANDLING systems more environmentally friendly (in accordance with the company’s sustainability goals).

The results of the programme, according to Hanson, have generated lower wear component parts with a commensurate reduction in costs for its ship loaders/unloaders and conveyors in general. “We are delighted that the results of this programme will offer our dry bulk handling customers some of the most substantial owner benefits available on the market,” states Hansson. “The vertical screw conveyor’s longer lifetime will result in fewer exchanges of worn components and deliver significantly lower total maintenance costs for operators that use our technology. These customerdriven advances are extraordinary and set an extremely high industry standard for this type of wear part.”

Hansson further points out that the sector is one that demands an incredible amount from its dry bulk handling equipment, in terms of intensity, value, and a competitive, expectant market. “We have grain, soya bean and soya meal handling systems operating in Brazil that run up to 4000 hours/year, working to some of the agribulk industry’s tightest seasonal schedules. There is no capacity in these operations for any unplanned downtime; longer screw conveyor lifetimes ensure that we will continue to meet this target in a more effective way.

“Very high use conditions naturally have an inevitable impact on wear parts, and, arguably the vertical screw is one of the most critical. By focusing our R&D efforts on this, we could see great potential; by dramatically improving the service life of wear parts, we can offer customers significant through-life maintenance savings, without increasing investment costs, and benefit the environment through a more sustainable approach.”

BUHLER: EXTRA PROTECTION The Buhler Portalink unloader was selected by Krakatau Bandar Samudera (KBS), the operator of the largest dry bulk port in Indonesia. KBS typically handles commodities such as maize, wheat and soybeans. Facing the challenges of maintaining its customer base and boosting income in a stagnant market, KBS chose the Portalink on account of its throughput capabilities. It has a maximum unloading throughput of 1300 tons per hour. This Portalink installation marks a first for Indonesia, being its first continuous ship unloader.

Despite the challenges posed by the COVID-19 pandemic, Buhler reports it was still able to fully install the unloader at KBS in two weeks, with the commissioning and training handled by a local Buhler team, backed up by remote support.

Other advantages of the Portalink system highlighted by Buhler include its closed-system technology, which reduces commodity losses and broken grains, and the overall reduction of dust emissions.

CLEVELAND CASCADES: ABRASION RESISTANCE The CC896, CC897 and CC898 ship loading chutes have been popular sellers for Cleveland Cascades.

ADM Ama Louisiana is one example, using three identical shiploader systems for grain handling, as well as a drum winch sourced by Cleveland to extend and retract the system. The systems also use a series of 1700 GRP cones as a means of directing the flow of the cargo and to reduce its velocity and impact. Due to the abrasive properties of grain, the cones are designed to withstand wear and tear, so that they can hold out during the fast conveyance of the grains.

The system reportedly also offers a high degree of flexibility in terms of accommodating the variation in grain densities.

‘‘

Knowledge transfer from other bulk handling sectors and automation drawing on AI are two prominent drivers of system innovation

In 2021, Cleveland Cascades won a contract to supply two identical cascade systems to Ashdod Port, Israel. The systems are used for grain loading (attached to a grab fed eco-hopper used for vehicle loading) and, in order to withstand the abrasion from the grains, are lined with stainless steel.

8 Reducing component wear for improved performance and durability has been at the heart of a recent Bruks Siwertell R&D Programme

TH WHITE: UPGRADING TILBURY The rebuilding of Tilbury Grain Terminal has been ongoing since 2018. Matters weren’t helped by a dust explosion and fire in its concrete silos in 2020 – however, with the help of TH White Storage Solutions, the rebuilding project is well on track, with a completion date due for the middle of this year.

Work is presently underway on Tilbury’s Steel Silo 3 (the 2020 explosion occurred in Silo Block 4). All of the silo bases have been modified with a concrete slab so as to accommodate the new corrugated 11m wide x 30m high steel silos. The silos themselves have been built with 3m wide overhead gantries which will accommodate the 700tph high capacity 800mm wide chain conveyor belts.

While Silo 4 is being worked on, TH White has also been commissioned to work on a transfer reclaim conveying and elevating system. This is to transfer cereals from the main terminal headhouse to the new silos, the 17,000 tonne bulk store and the two local customer flour milling operations of ADM & Allied Mills – doing so at a rate of 500tph.

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

MAY 2022 | 43

MARINE CIVIL ENGINEERING

BETTER BOLLARDS With proper specification, testing and tapping into smart solutions today’s marine bollards can contribute a lot to safe and efficient vessel berthing. John Bensalhia reports

8 Bollard load testing underway in the port of Southampton, UK

While ongoing influences such as bigger ship sizes, higher demand for cargo and challenging weather conditions add extra pressure on marine bollard systems, technological breakthroughs have resulted in more advanced products such as smart bollards.

However, let’s backtrack four years. In discussing regulations with respect to the design and use of heavy-duty marine bollard systems, Erik Broos of the Port of Rotterdam delivered a paper to the PIANC World Congress on the loadings that multiple lines impose on bollards. Ben Simpson, Business Development Executive, Fendercare Marine, takes up the story.

“BS 6349-4 suggests that a maximum of two ropes from the same vessel should be considered, but we know that this is rarely the case. Onboard ship the design of the mooring equipment is based around the minimum breaking load (MBL) of the mooring line with a design factor of 1.25. The winch brakes are set at between 50 and 60 per cent of the MBL of the line. We know the design criteria based on the provisions within the relevant parts of BS 6349.

“The actual load imposed by the mooring line,” Simpson elaborates, “will vary with the material from which the line is made and the angles through which the load is applied. Most conventional mooring lines are elastic, to an extent, so the shock loads are absorbed by the rope. Where the situation becomes very unclear is when mooring lines from different vessels are placed on the same bollard. These ropes may have very different characteristics and as such, apply their loads to the bollard in very different ways.”

Simpson notes that there is a trend towards vessels using HMPE mooring lines which are, to all intents and purposes, inelastic as wire rope and should be used in conjunction with mooring tails of a more elastic material such as nylon.

“However,” he says, “there are instances where mooring tails,

44 | MAY 2022

for whatever reason, are not used, leading to a shock load that may be applied to the bollards. At what level will depend on the accuracy of the winch brake setting if indeed the lines are still on the winches.”

Simpson adds that nowadays there are more requirements and specifications for independent bollard testing for new and existing bollards on quaysides: “This is so the client understands the loads that can be placed on existing bollards and that bollards that have been recently supplied can be validated.”

Fendercare in partnership with Associated British Ports (ABP), has identified, designed and engineered a rigorous testing regime in order to demonstrate each bollard would be capable of holding the safe working load within the terminal. “By carrying out FEA analysis and destructive and non-destructive testing, we can provide confidence that the bollards are able to sustain and endure the working loads of the large vessel docking on the quayside.”

THE CASE FOR TESTING UK-based Bollard Proof, a specialist bollard testing company, has recently tested bollards in Belfast, ABP Immingham and Southampton, Grangemouth, Rotterdam, Antwerp, Marseille, Corsica, Martinique and Guadeloupe. The testing included corroboration of in-house testing of smart bollards with internal and external load sensors.

Generally, taking the testing route can deliver both greater understanding and ultimately knowledge of whether a bollard system is ‘man enough’ for the intended role. Bollard Proof points out that both old and new bollards can be tested.

“With existing facilities, bollards might be so old that load capacity data may not exist,” says Rob Gabbitas, Technical Sales Manager. “Bollard Proof,” he elaborates, “can test and

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

MARINE CIVIL ENGINEERING

‘‘

A number of high-profile bollard failures have raised red flags

calibrate such bollards with a safety margin and bring a new lease of life to berths, making them fit for duty with an entirely new type of ship. This,” he explains, “has certainly been the case where we have tested bollards which were 100 years old and have as a result enabled mooring facilities to adapt and accommodate cruise vessels, heavy load-out applications and project cargo vessels in the renewables sectors. Aside from the safety aspect, testing can be a very economical alternative to installing new bollards.”

New bollards can also be tested. Gabbitas notes that many suppliers provide in-house pull testing of bollards, but while this will prove the integrity of the casting or fabrication of the bollard, it cannot ensure the strength of the foundation and anchorage, or pre-tensioning of the fastening of the bollard once installed.

Recent years have seen significant growth in the supply of bollards from less traditional sources. While first costbeneficial in many cases, the global supply chain has seen the distance and visibility between customer and foundry lengthen considerably, with associated concerns as to provenance and quality of castings. “A number of high-profile bollard failures have raised red flags for many clients in terms of their risk strategies and contingency plans, should busy berths become operationally compromised or unsafe to use,” says Gabbitas.

SMART SOLUTIONS Until recently, it has not been possible to measure the load on mooring lines using a bollard. The lack of exact load data for moored vessels means that ports have had to assume maximum mooring loads.

“For the operator, it is important to know exactly what the loads on the mooring lines are, especially in the case of bad weather, with high waves, strong currents and gusts,” explains Debora Berkhof of Straatman BV. “If the loads on the lines are too high the ropes can break and the ship will detach from the quay, which can cause serious accidents. The use of Smart Bollards can prevent this from happening. They increase safety by giving a real-time overview of the loads on the mooring lines, and provide a better understanding of overall mooring forces as data is logged.”

Smart Bollards can also help the terminal or port to improve efficiency with the loading/unloading of vessels. “For port operations, a ship must be fully stable whilst moored,” says Berkhof. “Loose mooring lines can result in excessive movement of the ship as a result of passing vessels or high winds. Any excessive movement of the ship can potentially result in crane operators damaging the ship during loading/ unloading operations. By constantly monitoring the loads on mooring lines, operators, crew, and port and terminal personnel can ensure the load remains constant, and the ship remains stable. This will inevitably result in smoother, faster, and safer loading and unloading of cargo.

“As installations of Smart Bollards increase, and ports around the world start to notice the benefits, we believe the rate of take-up will grow quickly,” contends Berkhof. “The level of visibility and data collection that the system offers, combined with the unobtrusive design of the system, makes the upgrade an attractive prospect for port operators.”

The Straatman smart bollard system utilises a dashboard to feature all the information generated by the smart bollard.

8 The Straatman Smart Bollard working during Storm Eunice which hit The Netherlands in March of this year

This includes: load on bollard; line direction, line angle, tide level, weather data and vessel history (AIS data). The administrator of the system can add users and set alarms.

With the provided API, all data can be accessed to be imported into other systems. Data is accessible to the port authority, terminal operator and the vessel operator.

“Every Smart Bollard is connected to our cloud management system,” says Debora Berkhof. “Besides all data from the Smart Bollards, information from incoming vessels is collected and registered (AIS integration) in a vessel database, together with actual weather information from the location itself. With our standard API our system can easily be integrated in other systems.”

The latest addition to Straatman BV’s Smart Bollard system is a predictive mooring application, developed with Royal Haskoning. “This software application can predict specific mooring forces and ship motion days in advance. This is achieved by combining logged data, ship specifications, and weather forecasts.”

Arwen Brenneman of Canada-headquartered Reliance Foundry reports that Citysage, Reliance Foundry’s new smart cities division, is working on several marine applications for local municipalities. “In one bollard-related example, we are implementing a project that monitors current tide levels and combines this data with local forecast data. Our machine learning system analyses these two data sources and predicts likely future events, sending email and/or text alerts to managers about incoming flooding events. This system will also cue a series of smart bollards to display red, yellow, or green LED lights to let site users know when there is an incoming flood risk along the shore (and up the feeder rivers that lead to the area). Crews can be dispatched to prepare the area and shut down pedestrian spaces that may leave people at risk.”

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

MAY 2022 | 45

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C ONNECTION SOLUTIONS

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.

C ARGO HANDLING EQUIPMENT

B ULK HANDLING

A UTOMATION TECHNOLOGY

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

NEUERO Industrietechnik GmbH

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

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

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

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

C ONSULTANTS

B ULK HANDLING

Staubli_Directory Mar 2021.indd 1

Bedeschi S.p.A 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

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

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.

excellent returnCambridgeshire on investment.

Gemini House Business Park, Gemini House Cambridgeshire 1 Bartholomew’s Walk, Ely Business Park, Cambridgeshire 4EAEly 1 Bartholomew’sCB7 Walk, England, United Kingdom (UK) Cambridgeshire CB7 4EA Tel: United +44 1353 665001 (UK) England, Kingdom Fax:+44 +44 1353 1353 666734 Tel: 665001 sales@samson-mh.com sales@samson-mh.com www.samson-mh.com www.samson-mh.com

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.

YOU CAN DEPEND ON BIG RED!

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

DRY AGRIBULK MATERIALS HANDLING SYSTEMS : – Portable grains pumps – Pneumatics continuous barge and ship unloaders 100-1200 tph – Simporter twin-belt unloader up to 2500 tph – Loaders up to 2500 tph Complete turnkey projects VIGAN Engineering S.A. Belgium Tél.: +32 67 89 50 41 www.vigan.com/info@vigan.com

Vigan ID.indd 1

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

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

26/05/2021 12:20

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. 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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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

E LECTRIFICATION SOLUTIONS

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C OMPONENTS

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We are a UK-based independent consulting firm with a mission to provide flexible, affordable, and agile Port & Logistics consultancy services to our clients.

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LASE Industrielle Lasertechnik GmbH

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London Port & Logistics Consulting Ltd Tel: +44 7379 039957 info@lplc.co.uk www.lplc.co.uk

3690 N Church Avenue Louisville, MS 39339 USA +1 662 773 3421 CONTACT?SALES TAYLORBIGRED COM www.taylorbigred.com

D REDGING

Overland Conveyor Pipe Conveyor Stacker & Reclaimer Shiploader

Taylor Machine Works, Inc.

C ARGO HANDLING SYSTEMS

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

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

Designedindustrial for rapid installation across multiple onsite set-up and continuous segments.

Designed for rapidhigh onsite performance SAMSON equipment set-up and continuous high performance provides an excellent return on investment.

SAMSON equipment provides an

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

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MAY 2022 | 47

PRODUCTS & SERVICES DIRECTORY

Port Strategy Directory Contact Tim Hills +44 1329 825335 www.portstrategy.com H ANDLING EQUIPMENT

G RABS

MRS Greifer GmbH

Camco ID June 2021.indd 1

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

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Künz GmbH

To advertise in the

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.

Port Strategy Directory Contact Tim Hills +44 1329 825335 www.portstrategy.com

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

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

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

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

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To advertise in the

Port Strategy Directory Contact Tim Hills +44 1329 825335 www.portstrategy.com

TT Club Directory March 2021.indd 1

01/03/2021 14:40 For

S IDELIFTER/SIDELOADER

I NSURANCE

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Visy systems reduce VISY Oy expenses, optimize safety & security, and VISY takes pride incapacity solving via increase throughput 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.

P OWER TRANSMISSION

Orts GMBH Maschinenfabrik

48 | MAY 2022

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

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

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.

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

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

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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

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

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

MARINE FENDERS

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

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I T PORT AUTOMATION

F IRE SUPPRESSION SYSTEMS

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.

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

We Keep Your Vital Business Moving!

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

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

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

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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

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

T ERMINAL OPERATIONS SYSTEMS

S PARE PARTS

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

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

MAFI Transport-Systeme GmbH 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

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.

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

POSTSCRIPT ENVIRONMENTAL COST CALCULATION

‘‘

There is only a limited understanding of the transmission mechanism between environmental risks and financial risks, and the ability to quantify these risks

There is only a limited understanding today of the relationship between environmental risks and financial risks, and the ability to quantify these risks. More know-how is required as recognition builds of the concept of environmental risk.

The USA is widely recognised as a more litigative environment than most – one which often has a fair degree of opportunity associated with it. Thus, while not doubting the basis of the claim the State of Maryland is making with Taiwanese liner operator Evergreen, the fact that it has asked Evergreen to establish a so-called responsibility fund to the tune of US$100 did attract a wry smile. It’s such a convenient figure US$100 million isn’t it?

It would be interesting to learn how this figure is arrived at – even if it is just to find out that it “seemed like an appropriate figure and so we set the bar accordingly.”

At least Evergreen has some experience of these matters, albeit hard earnt. The now famous grounding of the Ever Given in the Panama Canal initially had a fine, issued by the Panama Canal Authority, attached to it of US$916 million. After being removed from its position of completely blocking the Canal the vessel was detained until the fine was paid.

The grounds stated for the fine, as reported in the state-controlled Ahram Gate publication, were that it was compensation for the revenue lost during the canal blockage (a not insignificant sum), and covered the cost of the rescue mission as well as provided a sum to cover the damage caused by the vessel to the Canal’s embankments when it grounded.

The US$916 million fine was, however, not paid.

After negotiations between the vessel’s owners, the Japanese company Shoei Kisen Kaisha, and the Panama Canal Authority a revised figure of US$550 million was agreed on, a figure almost 40 per cent below that originally asked for.

From a spectator perspective, and without knowing the methodology of how the figure was arrived at, this seems fair given that the Ever Given was reported at the time to be chalking up lost revenues for the Canal of US$14 to US$15 million per day. The calculation was additionally made by analysts that Ever Given, on a per day basis, was holding up an estimated US$9.6 billion of trade equating to US$400 million and 3.3 million tonnes of cargo an hour or US$6.7 million a minute. Or, taking another perspective, German insurer Allianz calculated that the cost of the blockage to global trade was in the order of US$6 to US$10 billion a week.

Big numbers, big picture stuff and ultimately an interesting comedown on behalf of the Panama Canal Authority as to the level of fine applied. Still a big number but US$550 million sounds a lot better than US$916 million to the party paying the bill!

MEASURE UP? So how does the Maryland claim measure up by comparison? To be fair it should be pointed out that this is not a fine but what has been dubbed a “responsibility fund” to pay for costs related to the

50 | MAY 2022

8 Ever Forward: cost of environmental damage calculation methodology required

month-long grounding of the Ever Forward in Chesapeake Bay. Costs are principally identified as environment and economic costs, and in the latter context specifically as they relate to the seafood industry.

Peter Franchot, Comptroller, Maryland, writing to Benjamin Tsai, President of Evergreen Shipping (America) Corporation stated: “While we do not know the full scope of the environmental impact thus far, a 131,420-ton ship, carrying tons of cargo and fuel, getting stuck in our waters has resulted in disruptions to the Bay’s fragile ecosystem.” And on the necessary dredging undertaken to release the vessel he further noted: “While this may have been a necessary action, among its potential consequences include damage to oyster beds and disruptions to the spawning season for several species that our seafood industry – already struggling economically due to labour shortages – will harvest in coming months.”

How a US$100 million fund fits with this scenario ultimately remains to be seen.

The Panama Canal event with Ever Given was much more economically oriented and with this there is much more experience and indeed methodology for calculating costs.

There is much less experience of calculating costs due to negative environmental impact. Indeed, this is further reflected in the fact that Environmental Risk and Environmental Risk Analysis are disciplines that to-date have not gained great financial recognition or been seriously addressed by many financial institutions.

A key factor behind this is the limited understanding of the transmission mechanism between environmental risks and financial risks, and the ability to quantify these risks. This whole area, and especially in a transportation context, is one that has new dimensions to it in today’s era of increased environmental consciousness and is effectively at an early stage with regard to the build-up of relevant experience. It is, however, an aspect of business life that promises to take on increasing importance and one that accordingly will require much more attention on the part of public and private enterprises worldwide.

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