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SEPTEMBER 2021 VOL 1021 ISSUE 7

portstrategy.com

LEEA lifting warning | S.A. at a crossroads | Central Corridor advance | Reel challenges

MISSISSIPPI MARKET MOVES AUSTRALIA: THE REFORM DEBATE TSR: PLANS BUT PROBLEMS MONTEVIDEO HUB HOPES

PORTSTRATEGY INSIGHT FOR PORT EXECUTIVES

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

VIEWPOINT MIKE MUNDY

Monopolies and Common Sense

A good concession agreement should always oﬀer a level of protection to a serious investor

The situation in Montevideo, Uruguay is interesting and is one that is a regular issue raised elsewhere. TCP, the container terminal operator, has recently reasserted its right, set out in its concession agreement, to have priority for all container vessel calls. Effectively, this means that the other main stevedore in the port, Montecon operating on the public berths, will lose out. Since 2015 Montecon has been handling the lion’s share of container traffic but now it claims that it may not even survive following formal government recognition that, as per the terms of TCP’s concession agreement, container liner traffic must be handled first and foremost by TCP. Montecon, in turn, suggests that this effectively hands a monopoly to TCP which is not allowed under Uruguay’s constitution. Hence Montecon is continuing with legal action aimed at overturning the recent government decision which has resulted in a major redirection of container flows in Montevideo. What is the volume involved you ask? - a question that tends to have a bearing on the monopoly issue – for 2020 it was 765,000TEU, and it is on the increase. Indeed, TCP is initiating a comprehensive, front end led, investment programme, a large part of which is aimed at establishing Montevideo as the hub port for the River Plate as well as southern Brazil. So, on the one hand it is possible to suggest that with a volume of this order and given a positive outlook for traffic development that it may well be beneficial to have a second string – second operator – involved in container handling. On the other hand, TCP has committed to a US$455 million investment programme and it is logical to require some form of protection in this respect. Bottom line, from a liner perspective, the right service capacity has to be in place at the right price – the downside of monopolies is when they facilitate inflated prices. It all usually comes back to a sensible concession agreement, price issues can be dealt with in this context and particularly for gateway cargo. Transshipment tends to have an inherent element of selfregulation via the presence of competing capacity in the wider region. Indeed, TCP in a general context claims that it does face competition from overseas terminals, such as those in Buenos Aires, but practically speaking it is hard to extend this argument to import/export cargo. A good concession agreement should always offer a level of protection to a serious investor in terminal operations. It should facilitate a sufficient volume turnover to generate an acceptable return on investment (ROI). The other side of the coin is when a second operation is introduced too early to allow this to happen – this is not an intelligent approach. A typical situation in this instance is when the original investor – a common user terminal operator – experiences a relatively slow build-up of cargo and the host port authority decides to bring to the market a second terminal with a dedicated terminal for a shipping line in mind. It may facilitate the port authority’s desire to open another stream of income, particularly with grants and soft loans playing a part in setting up the second terminal, but it shows little respect to the original investor and sends out a bad message regarding FDI in the host country. It is always better to exercise common sense!

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

News Reporter: Rebecca Strong rstrong@mercatormedia.com Regular Correspondents: Dave MacIntyre; Iain MacIntyre; Felicity Landon; Alex Hughes; Stevie Knight;John Bensalhia; Ben Hackett; Peter de Langen; Barry Parker; Charles Haine; AJ Keyes; Andrew Penfold; Johan-Paul Verschuure; Phoebe Davison Production Ian Swain, David Blake, Gary Betteridge production@mercatormedia.com SALES & MARKETING t +44 1329 825335 f +44 1329 550192 Media Sales Manager: Tim Hills thills@portstrategy.com Media Sales Executive: Hannah Bolland hbolland@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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SEPTEMBER 2021 | 3

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CONTENTS SEPTEMBER 2021 VOL 1021 ISSUE 7

portstrategy.com

LEEA lifting warning | S.A. at a crossroads | Central Corridor advance | Reel challenges

NEWS

21 Lift Guidance

17 DCT Moves

23 At a Crossroads

Market share grab

18 California Up

Imports drive volumes

AUSTRALIA: THE REFORM DEBATE

18 COSCO Headache Deadline missed

TSR: PLANS BUT PROBLEMS MONTEVIDEO HUB HOPES

On the cover The port of Montevideo, Uruguay where extensive plans have been laid to fulfil a major regional hub port role. TCP, the main container terminal operator, has formulated a multi-million dollar investment programme following formal government acknowledgement of its pole position in the container handling sector but not without ongoing controversy

11 Spending Big

29 Central Corridor

11 L.A. Future

33 Oz Reform Debate

12 ‘Death Kiy’ in S.A.

37 TSR Plans but…

APM buys two

Predictive tool Cyber aack

17 Southampton Invests

US$55m programme

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

17 Gearing Up Tuas systems

18 Retrofiing Plans S. Carolina RTGs

19 Liverpool Cranes Two more STS

Join leading port executives www.greenport.com/congress

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

Game changer emerges?

Russia port plans

Infra’ solutions

Piraeus2021

24 Mississippi Potential

27 Down But Not Out

17 Hyundai Launch

GREENPORT Cruise Congress

S. Africa reforms

More sign-ups

Tradelens member

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

LEEA Code

11 GSBN Progress

12 AICT Joins

is a proud support of Greenport and GreenPort Congress

FEATURE ARTICLES

17 Bagamoyo Port Project revisited

MISSISSIPPI MARKET MOVES

SEPTEMBER 2021

REGULARS 14 The Analyst

Volume-revenue link

14 The New Yorker

Phase 1: nearly done

The pros & cons

Expansion considerations

38 Priority Projects Key port plans

41 Hub Hopes Montevideo mega-hub bid

47 Seing the Standard

Cartagena wins

48 East Coast Canada No changing of guard

51 New Route

Marine door to the Midwest

53 Challenges and answers

Reel clamp innovation

58 Postscript

Misplaced hub aspirations

Vaccine bright spots

15 The Economist Time to make hay

15 The Strategist Get PR ready

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

SEPTEMBER 2021 | 5

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PORT & TERMINAL NEWS Tanzania’s previous government, headed up by the late President John Magufuli, had shelved the Bagamoyo new port project on the basis that the cost and general commercial conditions associated with the project as proposed by China Merchant Holdings and other investors were unviable. But now it is back on the agenda again, the announcement in this respect being made at the end of June by the country’s current leader, President Samia Suluhu Hassan. The essence of her announcement is that Tanzania will look to revive the project which foresees the construction of both a new port and special economic zone, at a cost estimated to be in the order of US$10 billion. Underpinning the plan, is the objective of creating a major trade and transport hub to rival Kenya’s Mombasa hub in particular and, as part of this, to act as a key gateway

TANZANIA’S BAGAMOYO PORT PROJECT UNDER DISCUSSION AGAIN 8 New Bagamoyo port, Tanzania, back on the agenda again?

for the Central Corridor serving landlocked countries such as Rwanda, Burundi and the eastern part of the Democratic Republic of the Congo. Back in 2013 China Merchants, China’s largest port operator, had

inked a framework agreement with the Government of Tanzania to develop the port and had lined up investors including Oman’s State General Reserve Fund to finance the project. The agreement will be revisited

as part of the new negotiations going forward. Bagamoyo is located 75 kilometres north of Dar es Salaam, where the country’s current major port is also the site of development work by a Chinese company, China Harbour Engineering Company (CHEC). The company is principally working on the upgrade of seven existing berths and the construction of one new berth which together as well as enabling the entrance of larger vessels will raise the port of Dar es Salaam’s annual capacity rating by some 26 per cent to 17.65 million tonnes.

The Port of Gdansk Authority has oﬃcially announced that the lease for a major new port area has been awarded to DCT Gdansk, the port’s existing high volume container terminal operator. The area will be used by DCT to develop a new terminal, “Baltic Hub 3,” featuring a third deep water quay extending for 717m with a depth alongside of 18m and supported by a 360,000m2 yard area. When fully developed the new area will add an additional 1.5mTEU/yr of container throughput capacity to the existing 3mTEU of capacity provided at its existing Terminals 1 and 2, which opened for business in 2007 and 2016 respectively.

GDANSK PUSHES TO BUILD MARKET SHARE Total investment, to be financed solely by DCT, is put at €450 million. This will include the purchase of seven quay cranes able to handle the world’s largest vessels and 20 semi-automated rail mounted gantries for the container yard which will be remotely operated. A consortium of PSA International (40%), state-owned Polish financial group PFR (30%) and fund manager IFM Investors (30%) acquired DCT from Australia’s Macquarie in 2019. The latest announcement can, in part at least, be seen to represent a push on the part of DCT to consolidate and expand

its market position at a time when its nearby competitor, the port of Gdynia, is also planning a new deep-water container terminal in a new outer port area. The construction of the Outer Port at the Port of Gdynia is included in the Strategy for Sustainable Transport Development to 2020 (with a perspective to 2030) as a strategic government project. The project is also included in the list of key infrastructure projects of the Baltic-Adriatic TEN-T Corridor as part of the Gdynia transport hub. The project involves the construction of new deep-water port infrastructure, which will

enable the largest ocean-going vessels to be handled. Eﬀectively, it will put Gdynia in direct competition with Gdansk by also being able to oﬀer deep water container terminal facilities. Both new facilities will undoubtedly look to entice new alliance loops operating in Asia – North Europe trade to extend beyond the traditional Le Havre – Hamburg/Bremerhaven range into the Baltic. Generally, with both new facilities up and running it promises to be a much hotter competitive climate.

Antwerp Award

Lamu Inauguration

Grimaldi Acquisition

Enter Haropa Port

PSA Breakbulk has been awarded the concession for a 15ha site close to Churchill Dock South in the port of Antwerp, Belgium. PSA Breakbulk has introduced the specialist Austrian heavy lifting company Felbermayr Holding GmbH to the project as a 50 per cent shareholder with a view to maximising heavy lift activities at the site. Lifting capacity will include a 750-tonne rated crane. The terminal will also focus on breakbulk activities.

President Uhuru Kenyatta of Kenya recently formally inaugurated the first berth of the New Lamu Port. The berth has a length of 400m and a draft of 17.5m alongside. Two further berths are expected to be completed by the end of the year. Lamu port represents a key component of the Lamu Port- South Sudan – Ethiopia Transport Corridor (LAPSSET) project as well as fulfilling the desire of establishing a second import/export gateway.

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

The Grimaldi Group, a major player in the ro-ro freight and passenger markets, has reached agreement with Spain’s Trasmediterranea Group to acquire its five vessels, Valencia terminal, warehouses and oﬃces in Palma de Mallorca, Mahon and Ibiza as well as the rights to operate services between mainland Spain and the Balearic Islands. Grimaldi expects to achieve synergies with existing services it oﬀers.

BRIEFS From the beginning of June this year the French ports of Le Havre, Rouen and Paris have combined to form the “major Seine Axis river and sea port authority,” dubbed HAROPA PORT. This new entity describes itself as the fifth largest northEuropean port complex oﬀering connections to every continent and approximately 650 ports worldwide. The hinterland served is described as extensive, focusing on the Seine Valley and the Paris region,

SEPTEMBER 2021 | 7

PORT & TERMINAL NEWS

BRIEFS Valencia Tender

The port of Valencia has gone out to tender for wind turbines which will be used to generate electricity for its new northern extension. This measure represents an integral component of the port’s plan to deploy carbon reducing methods of power generation which also include a collaboration with Balearia for the use of cleaner fuels such as LNG and the H2PORTS project under which three hydrogen pilot schemes are being progressed, namely: a supply station, a tractor unit for ro-ro operations and a reach stacker for container handling.

UK Logistics Hub

A new logistics hub is set to be developed in the West Midlands, UK. Oxford Properties together with Logistics Capital Partners have acquired a 734-acre site near the city of Birmingham with plans to develop it into what they describe as the UK’s largest logistics hub incorporating a rail freight terminal. Planning consent has been secured with this facilitating the provision of eight million square feet of prime logistics space.

Cruise Alliance

MSC Cruises and the Italian shipbuilder Fincantieri have signed a contract to realise the construction of a new so-called mega terminal at the port of Miami, USA The terminal will be designed to serve up to three latest generation cruise ships simultaneously with the cost of development being put at US$414 million. Two berths will be financed by MSC and the third by Miami-Dade County. The new terminal building will include oﬃce areas, a multi-level car park for at least 2400 vehicles and a new road connection.

8 | SEPTEMBER 2021

Container throughput in California’s ports is booming, driven by loaded imports from Asia, and with no signs of the wave of boxes easing. Total container volumes through the ports of Los Angeles (LA), Long Beach (LB) and Oakland increased significantly in H1 2021 compared to H1 2020. For example, LA handled almost 5.43 million TEU in the period January to end of June 2021 period, compared with 3.76 million TEU for the first half of 2020, a huge uplift. Similarly strong growth occurred at LB, with the H1 2020 total of 3.43 million TEU increasing to 4.75 million TEU for H1 2021. Likewise for Oakland, the H1 2021 period was up by more than 11 per cent over H1 2020. This growth is being driven by loaded import activity in the Transpacific trade from Asia. For LA, its H1 2020 loaded import total of 1.95 million TEU increased to 2.83 million TEU for H1 2021, while LB saw 1.66 million TEU for the 2020 six-month period rise to almost 2.32 million TEU for the comparable 2021 period. Oakland’s volumes, although lower than ports in Southern California, still recorded an increase for H1 2021 of 19.5 per cent over H1 2020. Figure 1 shows the extent of the growth in more detail. The second half of 2021 will see further pressure on the logistics supply chain. High freight rates

IMPORTS DRIVE CALIFORNIA BOX BOOM # # # # # # # # # # #

applied by shipping lines indicate strong demand for space and the forthcoming peak season in North America will see retailers stock-up on merchandise to meet consumer demand. Yet issues remain. The recent decision of Union Pacific Railroad to temporarily halt movement of containers on the rail network from the US West Coast to gain some respite in order to clear a logjam of boxes near Chicago will only cause a backlog of containers building in the supply chain from ports. The decision of President Biden for Congress to investigate allegations of anti-competitive practices by the carriers oﬀers no help in actually addressing wider issues relating to infrastructure. There is a disappointing lack of focus on

8 Figure 1: Comparison of Growth H1 2020 vs H1 2021 for Ports of Los Angeles, Long Beach and Oakland in Per Cent – Total Volume and Loaded Imports, by TEU

the wider supply-chain and its ability to cope with continued growth. There is a longer-term focus with a new infrastructure package providing US$17 billion for investment in ports announced by the Biden administration at the end of July. Independent observers have suggested, however, that while this may go some way towards alleviating current pressures there needs to be an overall maritime strategy to make the sector more competitive internationally and against competing transport modes domestically.

COSCO PIRAEUS DEADLINE HEADACHE COSCO, the Chinese shipping and terminals group, has missed the deadline to up its stake in the port of Piraeus. The 2016 concession agreement saw COSCO buy a 51 per cent stake in the port for €280 million and commit to investments of €300 million, which if completed in five years would make it eligible to acquire a further 16 per cent holding. Not all agreed investments were completed by the August deadline which technically makes COSCO ineligible to take up the additional holding. It is understood, however, that COSCO has placed contracts which meet the €300 million requirement and as such it is

optimistic that the purchase of the additional tranche of equity can be completed in the spirit of the agreement. One particular problem is the upgrading of the port’s cruise terminal to accept larger vessels; work that COSCO initiated but had to halt due to local interests lodging environmental objections. In a more general context, COSCO also still has an application pending with government for a €200 million investment for a new container terminal which would raise annual throughput capacity at Piraeus from 8 million TEU per annum to 11 million. Total container volume in 2020

amounted to 5.4 million TEU and COSCO reportedly believes that there is major potential to achieve further increases. COSCO has put forward various arguments to government that it sees as having a bearing on its ability to conclude the investments necessary to acquire the further equity stake – one being that the state did not license the required investments in suﬃcient time to realise them. Presently it is understood that discussions are taking place between government and COSCO as a path to resolving the diﬃculties. If these bear no fruit, then the next step could be arbitration.

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

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DIGITAL NEWS

GSBN CITES MORE PROGRESS The Global Shipping Business Network (GSBN), a not-for-profit organisation comprising HapagLloyd, COSCO Shipping, COSCO Shipping Ports, Hutchison Ports OOCL, SPG Qingdao Port, PSA International and Shanghai International Port Group, has confirmed a new Memorandum of Understanding (MoU) with eight major shipping port groups in China to accelerate the digital transformation of the shipping and logistics industry. The groups include Guangzhou Port Company, Fujian Province Port Group, Zhejiang Provincial Seaport Investment &

Operation Group, Jiangsu Port Group, Anhui Provincial Port & Shipping Group, Shandong Port Group, Tianjin Port, and Hainan Harbour and Shipping Holding. This latest development follows a July 2021 announcement which saw the formation of Cargo Release, GSBN’s blockchainenabled application and an earlier MoU in April 2021 with the Bank of Hong Kong (BOCHK) to develop and promote greater digital transformation of supply chains by eliminating paper cargo receipts and increasing the eﬃciency of trade finance authentication.

GSBN reiterated its ongoing objective of targeting greater collaboration and digital integration between shipping ports in China. This ongoing initiative could be regarded as part of China’s eﬀorts to utilise smart technologies to help support extra demands placed on the global supply chain caused by the COVID-19 pandemic, although, equally, its aims are similar to activities of other ports, shipping lines and companies in other global regions looking to unlock eﬃciencies and improve supply-chain resilience.

AP MOLLER MAERSK SPENDING BIG A.P. Moller – Maersk has confirmed it is acquiring two e-commerce logistics companies for US$838 million as part of its intention of building an asset-light business using e-commerce technology. After producing a record Q2 2021 EBITDA of US$5.1 billion and predicting full-year figures of between US$18 to US$19.6 billion, the Danish company announced it is purchasing Visible Supply Chain Management (Visible SCM) for US$838 million. Visible SCM is a business-toconsumer (B2C) logistics company specifically focused on B2C parcel delivery and B2C fulfilment services in the US, with its headquarters in Salt Lake City, Utah. At the same time, A.P. Moller – Maersk also stated an intention to spend $86m acquiring B2C Europe, a business-to-consumer logistics company focused on B2C parcel delivery services in Europe and based in the Netherlands. In its oﬃcial release on the subject, the company explained its rationale behind the process. “Fast-changing consumer buying patterns and digital platforms are accelerating online consumption, redefining business models across the globe,” the company confirmed. It seems obvious that within the e-commerce logistics service area, A.P. Moller - Maersk is intent on developing an asset-light,

BRIEFS BA to Modernise

Argentina’s General Port Administration (AGP) is launching a tender to renew and modernise its Electronic Document Exchange platform, known as e-PuertoBUE. The digital platform is currently used in the Port of Buenos Aires to conduct electronic logistics transactions relating to requests from shipping lines and agents, terminal operators and customs. Key targets include greater eﬃciency and speed in port processes, especially through automation and reduction of paperwork.

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global business focused on the two core capabilities of B2C fulfilment and B2C delivery. The attraction of Visible SCM is its ability to enable e-commerce businesses to ship and utilise a geographical network that places fulfilment centres close to consumers, with lower distances to be covered and faster delivery

8 A.P. Moller - Maersk is spending nearly US$1 billion on two e-commerce logistics companies

possible. For example, the Visible SCM e-commerce network says it can deliver goods to 75 per cent of the US population within 24 hours and reach 95 per cent of the US geography within a two-day delivery window.

LOS ANGELES MAPS THE FUTURE The Port of Los Angeles has introduced the predictive tool Horizon. Horizon functions as a long-term cargo volume predictive tool with this aimed at port stakeholders – terminal operators, cargo owners, truckers etc - better understanding cargo flows over a six month forward period. Gene Seroka, Executive Director, Port of Los Angeles, describes Horizon as a new, first

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

of its kind, forecasting tool. Horizon has been developed in partnership with Wabtec and employs an algorithm based on historical and trending volume data collected by Los Angeles’s Port Optimizer, a cloud-based digital portal of maritime shipping data introduced into service by the port in 2017. Data is continually updated by Horizon facilitating an eﬃcient forecasting process.

The Water Institute of the (US) Gulf has been awarded a US$1.6 million grant for the development of a Lower Mississippi River SmartPort & Resilience Centre (SmartPort). The award is from the federal government’s US Department of Commerce’s Economic Development Agency and supplements the US$1.4 million in matching funding from Partners, including the State of Louisiana. SmartPort is developing a support tool to forecast shoaling at port facilities along the Mississippi River, to understand how sediment builds up and impacts port operations.

PSA’s ESG MoU

PSA International Pte Ltd (PSA) has signed a new Memorandum of Understanding (MoU) with the RHT Group of Companies (RHT) to develop and understand the application of Environmental, Social, and Governance (ESG) digital assets solutions in order to contribute to achieving the goal of decarbonisation in ports and supply chains. RHT is to advise PSA on the opportunities and potential of digital asset structuring, distribution and trading.

SEPTEMBER 2021 | 11

DIGITAL NEWS

CYBER ATTACK – ‘DEATH KITTY’ – DISRUPTS SOUTH AFRICA PORT OPERATIONS South Africa’s port operations have reportedly commenced again after an eight-day stoppage due to a cyberattack. The country’s main port operator, Transnet, confirmed that a form of ransomware, dubbed “Death Kitty” forced force majeure to be declared on July 22, 2021. The news of the attack may not have come as much of a surprise. As a country, South Africa is ranked third in the world for the highest number of IT users seeing ransomware attacks. Unfortunately, this cyberattack came at a time when Transnet’s terminals were already struggling due to the impact of COVID-19 and civil unrest in South Africa. The cyber-attack negatively Al-Hamd International Container Terminal (AICT) in Pakistan has become the first inland depot operator in the country to join TradeLens, the specialist digital platform that supports the supply chain with a secure single source of shipping data. AICT is located in Pakistan’s biggest industrial zone, directly connected to Karachi, and responsible for around 70 per cent of all oﬀ-dock activity moving through the port. By joining the TradeLens

BRIEFS AI for Zim

ZIM has confirmed it is to deploy more widespread use of artificial intelligence (AI) in its daily operations, following a new deal with Tel Aviv-based Data Science Group. The two companies are collaborating to introduce machine learning solutions for shipping, to develop advanced models to forecast demand, plan shipping routes and automate logistical processes. Data accumulated from Zim’s shipping fleet will underpin the process.

12 | SEPTEMBER 2021

8 ‘Death Kitty’ ransomware recently rained havoc on South Africa’s main containerports

impacted both the ports of Cape Town and Durban, the main containerports, with disruption to IT applications

and the NAVIS system supporting trucking also aﬀected. Transnet subsequently confirmed that “in collaboration”

with shipping lines, urgent containers for the automotive, consumer goods and agricultural sectors were prioritised.

AICT JOINS TRADE LENS PLATFORM platform, any shipper or cargo owner moving import and export cargo through AICT will now be able to utilise functions such as an Electronic Bill of Lading (eBL) to ensure better end-to-end visibility as part of the digital documentation process. Ahsan Sarwar, Executive Director, AICT, explained the rationale behind the decision. “Joining TradeLens is a step in the right direction for us in moving closer to our vision of leading the digital change in Pakistan’s logistics ecosystem”.

Houston Back

Despite experiencing what it described as a “major failure of storage devices that support applications used to operate both container terminals,” the Port of Houston confirms all operations have successfully recommenced, with extended gate hours in operation to clear cargo. While not specifying exactly what caused an inability to process transactions, thereby meaning that any ship not already working could not commence, no lasting damage has been reported.

8 AICT has joined TradeLens and is targeting digital benefits

Autonomous Trucks

CSP Abu Dhabi container terminal at Khalifa Port is in the final stages of implementing an autonomous truck system to support mother vessel loading and unloading. The decision to implement the system follows a two-month trial. Six units will be commissioned, produced by Qomolo, a division of ShangHai Westell-Lab Company. The trucks are fitted with a 360deg sensory system complete with monitoring and driving guidance system.

CyberLogitec’s TOS

The new Beibu Gulf Port Group (BGPG) Qinzhou 5m TEU sea-rail container terminal is to employ a CyberLogitec Terminal Operating System (TOS). The system will be designed to work in conjunction with Augmented Reality (AR) intelligent security systems and Optical Character Recognition as well as the latest generation of navigation positioning and neural network technology of Intelligent Guided Vehicles. The terminal is expected to commence operations in mid-2022.

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

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THEANALYST PETER DE LANGEN

THE VOLUME: REVENUE RELATIONSHIP One might think that the revenues of port development companies (PDCs) are primarily driven by the volumes handled in the port. However, a look at the annual reports of some leading landlord PDCs like Port of Rotterdam, The Netherlands; Port of Barcelona, Spain; Port of Sohar, Oman and Gladstone Ports Corporation, Australia suggests that volumes handled may not be as central to revenue growth as one might assume. Take the Port of Rotterdam; while volumes were down more than six per cent in 2020, mainly due to the eﬀects of COVID-19, revenues were up six per cent. A similar performance was achieved by Gladstone, where volumes were down two per cent but revenues up by more than seven per cent and Gothenburg, Sweden, by way of another example, (vol. – two per cent and revenue growth up three per cent). All these ports managed to grow revenues in the face of declining volumes, due to non-volume linked revenue streams, mainly rental fees for land leased to third parties operating in the port. It is not all positive though; some PDCs

experienced exactly the opposite: volumes were up but revenues were down. This was the case in Esbjerg, Denmark and Pecem, Brazil. And then there were some ports where both volumes and revenues were down, but not necessarily in the same fashion: Port of Amsterdam experienced a throughput decline of around fourteen per cent and a revenue decline of around seven per cent.

Arguably, a limited dependence on volumes for revenue growth makes PDCs more resilient. Even when they can no longer grow the port volumes, they still have opportunities to grow revenues by expanding and developing their ‘port business ecosystems’ in other directions, be it as sustainable energy hubs, as sites for leisure or for other activities.

In this context it is interesting to note that all of the PDCs mentioned above made substantial investments in 2020. Some of the PDCs invested over 20 per cent of total revenues, which is very high, in a very uncertain market environment. A fundamental question has to be: did enough of these investments go into further diversifying the port business ecosystem?

THENEWYORKER BARRY PARKER

VACCINE DISTRIBUTION BUILDS BRIGHT SPOTS Amidst a continuing flow of bad news about COVID-19 in the maritime business, with mariners stuck aboard vessels, bright spots have emerged along the East, West and Gulf coasts, in the U.S. ports. The Maritime Ministries, which assist seafarers, have moved beyond providing sailors with knitted caps and the like; they are organising vaccines for mariners on vessels calling at their ports. This is a big deal and one worth celebrating. With the pandemic apparently with us for longer than we had thought only a few months ago (thanks to a resurgence fueled by

14 | SEPTEMBER 2021

“The Delta Variant”)- my hope is that ports will continue to assist the Ministries (along with local health providers and others) in keeping that supply of vaccines, almost always the one-dose J and J (colloquially known as “one and done”), coming to seafarers. The logistics of vaccine distribution in the port setting is not without challenges; often, the berths are not readily accessible from city centres. And, then there are the usually short berth times for vessels- though recent patterns (especially for inbound container ships) have kept them alongside for a little longer.

While the port authorities may not be bringing the actual arm-jabs to the visiting mariners, they nonetheless provide the “infrastructure” for expeditiously allowing healthcare providers access to the vessels, or arranging transportation from vessels to vaccine centres. Closer to home, ports can also play a role in eﬀorts to make sure that local workers are getting vaccines and staying protected, as best as possible, from whatever variants are lurking. Delays and slowdowns earlier in the year, notably in Q1 and Q2, were attributed, at least partly, to

shortages of workers who were quarantining, or worse actually out of action due to COVID-19 infections. Outreach and positive spin are positive by-products of such eﬀorts as ports have been battered, mainly unfairly and unjustifiably, for many real but also some imagined disruptions in supply chains. Ports where seafarers and shore-side workers have been aided ought to be trumpeting these activities, particularly in the new environment where cargo shipping , and many activities touching it, are no longer in the media shadows.

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

THEECONOMIST BEN HACKETT

MAKE HAY WHILE THE SUN SHINES… An unprecedented increase in shipping profitability has generated a newbuilding bubble that ports may not be prepared for. Shipping lines have not previously had so much profitability as they have enjoyed in 2020 and 2021. The COVID-19 pandemic has done wonders for the industry, everything went right for them financially. Environmental regulations forced them to put ships into drydock just as they were urgently needed in a demand driven surge that was desperately in search of spare capacity. The COVID-19 Pandemic hit the ports and logistical supply chain hard with manpower shortages which resulted in congestion on both sea and land. Congestion is bad for the management of shipping capacity as ships get tied down in queues to get to a free terminal. Once there, labour was in shortage, trucks and rail were also impacted. Everything led to a sharp slowdown in the movement of goods. Virtually no

…The Shipping Bubble is Bound to Burst

one was spared as Asia, Europe and North America were hit as well as ports in South America and Africa. Lack of capacity in a time of surging demand is always good for shipowners and carriers. Freight rates surged in 2021 at a rate not seen in a very long time. Then comes the question about what to do with the income. As demand for new tonnage in 2020 was fairly low, 2021 so far has turned out to be a bonanza for

shipbuilders as virtually the whole industry rushed to the shipyards to order new capacity. For the container industry this was mostly vessels of 18,000 to 24,000 TEU capacity. Almost no alliance carrier has been left behind. And here we come to the bubble bursting issue. The new orders will be delivered within two to three years, and if history is anything to go by, this will coincide with demand fizzling out after two years of dramatic growth.

Ports face a further challenge. As the Asian trades will be dominated with the ultra large containerships operating on minimal port call services, there will be mounting pressure on available quay space to deal with the 400 plus metre ships with 25 rows of containers needing to discharge thousands of containers in the shortest time possible. Given current problems these challenges look tough indeed. Time to prepare is short.

THESTRATEGIST MIKE MUNDY

PREPARE THE PUBLIC RELATIONS ENGINE The shelves are beginning to look a bit thin in my local supermarket – at times products are spaced out to make the shelves look busier. Speaking to a friend in the global toy sales business he tells me he has added US$15 million to his annual budget to cater for increased shipping costs. I happened to wander into a bicycle shop and the two ‘old hands’ there told me that they just couldn’t get bikes to sell. “Haven’t had any for ages, impossible to get hold of – now we are just living oﬀ the repair and maintenance side of the business.” Even worse, I went into a restaurant, well known to me, and they advised: “no Sauvignon, supply chain problems!” The general public are

beginning to feel the pain of messed up supply chains, port congestion, unreliable schedule and delivery times, and all at prices that are on the march upwards. There is a tangible feeling of frustration among cargo owners trying to feed their respective businesses and individuals awaiting or wanting to send goods. It’s rather like that feeling you get when your wading through an automated telephone system hoping to eventually speak to a real person – will it ever happen? There is little reason to believe that there will be any relief in the short-term – demand, in the context of messed up supply lines, continues to outstrip available capacity in major trade lanes, notably trans-Pacific.

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

Expect an even more frustrating and expensive environment going forward – for business and the general public. In turn, be prepared for supply chains and the players in them to come under much more public scrutiny. There is nothing like a combination of poorer service and rising costs to bring matters under the spotlight – politically, in professional forums and at the grass roots public level. There are always targets in such scrutiny and without doubt it is shipping that will be the prime candidate in this respect but there will also be others. Complaints have been building for a while, the noise is getting louder – it is getting political as well, as evidenced by the Federal Maritime Commission (FMC) probe into surcharges imposed by eight liner operators.

It doesn’t help that shipping lines are making so much money out of what is a painful period for cargo owners – that just “rubs salt into the wound.” There is a part of me that thinks, well these “happy days” have been a long time coming for shipping lines, maybe they deserve it – but of course I am not paying directly for freight transport or picking up the higher tab involved. The message is clear – until such a time as the wave of new container shipping capacity ordered begins to feed through if you are in the front line of supplying logistics services, and particularly if you are a liner operator or congested port/ terminal, then prime the public relations engine. Without doubt going forward it will be needed to mount the case for the defence!

SEPTEMBER 2021 | 15

EQUIPMENT NEWS

HYUNDAI INFRA SOLUTIONS LAUNCHED Hyundai Samho Heavy Industries (HSHI) has launched Hyundai Infra Solutions (HIS) in order to increase company competitiveness. HIS was launched at the start of May 2021 through a vertical spin-oﬀ to allow the existing company business to specialise on its core activities and gain new growth momentum.

This means that for HSHI its future focus will remain on the construction of ships, with HIS dedicating its activities to the manufacturing of cranes and bulk-handling plant and equipment. Yune Sung-il, CEO of HIS, explains further. “HIS will raise core competencies for the existing business (container

cranes, bulk handling plant and shipyard cranes) by upgrading eco-friendly and automation technology as well as platform-based total port solutions. In addition, HIS is willing to expand its business into various industrial plant and therefore grow to be a global Total Port & Infra Solution Provider.”

SOUTHAMPTON INVESTMENT PROCEEDS DP World has confirmed that the crane rail extension at its terminal in the Port of Southampton, UK, has been completed. The operator is making a £40 (US$55) million investment in the container terminal during 2021, which includes a 120m crane rail extension. The foundations for the process, which reach 26m below ground level and have taken 16 weeks to construct, are facilitating the ability of some of the existing ship-to-shore gantry cranes to move along the quay and thereby maximise flexibility by allowing the entire quay to be used. Other confirmed investment plans include: gaining permission for a third berth to be dredged to a water depth of more than 15m and the addition of a second empty container storage yard by September 2021. Ernst Schulze, Chief Executive,

Deck Crane Sails

Mitsui OSK Lines (MOL) is teaming-up with Oshima Shipbuilding and Iknow Machinery to research and develop the viability of introducing sails on ships’ cargo handling cranes to boost propulsion force. The project is targeting reduced greenhouse gas emissions from vessels by using oﬀshore winds to provide additional propulsion force. If successful, the sail concept is likely to be utilised on MOL’s fleet of bulkers, wood chip carriers and multipurpose vessels.

Saving Seals

DP World in the UK, notes: “The completion of the crane rail extension builds on the progress already made this year with the opening of a new Border Control Post and the dredging and widening work on a number of berths. Our next step – a £3m investment in the redevelopment

8 The crane rail upgrade in Southampton allows cranes to utilise the full length of the quay

of the yard for the storage and delivery of customers’ empty containers - will increase capacity by 25 per cent and create even more flexibility and resilience for our customers.”

MORE GEARING UP AT TUAS PORT A further six automated rail-mounted gantry cranes (ARMGs) from the Nantong Branch of ZPMC have been shipped to the new Tuas development for PSA Singapore. A total of 56 units of ARMGs are due to be delivered to the new mega-port project, overall. The latest delivery follows the first batch of two large-scale single-boom automated ARMGs, that have the capability to “adapt a network security system to ensure the data security of the subsystems,” being sent to the site in April 2021. The requirement for container handling equipment at this new facility is substantial. ZPMC previously delivered its first batch

BRIEFS

of four units of dual-trolley automated gantry cranes in September 2020 - pictured. The first phase of the new Tuas mega-port is due to open by the end of 2021 and when completed and fully operational by 2040 will oﬀer an annual capacity of 65 million TEU. Port Strategy will be assessing

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

8 ZPMC is processing a massive order for landside and quayside container handling systems for Tuas PSA Singapore – the delivery of these SSG’s preceded the latest ARMG unit delivery

the development of the Tuas project in more detail in the October 2021 edition as part of its South East Asia part two review.

HMM PSA Newport Terminal (HPNT) has developed South Korea’s first automatic container seal dispenser. As a result, trucking drivers now receive the seal immediately at the exit gate instead of undertaking timeconsuming procedures, such as parking the truck, visiting the gate access room to receive seals and completing any paperwork. HPNT estimates that the reduction in time for the new process is more than 10 minutes per truck trip.

Cargotec Up 101% Cargotec has confirmed that its orders were up by 101 per cent, yearon-year, in H1 2021. The company said that increased profitability and service orders were despite “global logistics and supply chain challenges” impacting delivery times. A company statement added that the global surge in container demand and an increase in construction activity had been the main drivers of growth, with further positive sales activity anticipated in H2 2021 and running into the 2022 trading year.

SEPTEMBER 2021 | 17

EQUIPMENT NEWS

BRIEFS ZPMC in S. Africa

ZPMC has entered the RTG port market in South Africa for the first time. The Chinese-based equipment supplier has won a contract to supply 17 automated RTGs to the Transnet ports of Cape Town and Durban. Collectively, these two ports handle around 80 per cent of the country’s total container throughput. ZPMC has already supplied seven ship-to-shore container cranes to Durban.

MoorMaster Deal Cavotec is to supply its MoorMaster NxG system at the Swedish port of Kapellskär in Sweden and the Port of Naantali in Finland. Installation is scheduled for 2023.

18 | SEPTEMBER 2021

RETROFITTING IN SOUTH CAROLINA South Carolina Ports (SCP has agreed a contract with Konecranes for hybrid power packs to be retrofitted to 12 rubber-tyred gantry (RTG) units. This conversion programme for the 12 diesel RTG cranes is expected to begin in January 2022. The hybrid power pack retrofit is part of Konecranes’ suite of Ecolifting products that deliver significantly reduced carbon exhaust emissions. SCP is able to undertake the process since the US Environmental Protection Agency (EPA) approved Konecranes’ new hybrid technology in April 2021. As a result, clients are now assured of the eﬃcacy and sustainability of Konecranes’ technology. Equally importantly, the EPA is oﬀering companies the chance to apply for grants under the Diesel Emissions Reduction Act (DERA) in order to convert to more

sustainable equipment. Funding for this retrofit is also being provided, in part, through a 2019 DERA grant that was awarded to the South Carolina Department of Health and Environmental Control, in partnership with South Carolina Ports. This latest contract follows 30 new Konecranes hybrid RTGs being delivered to ports across the USA since 2020. “Anyone can add a battery

8 SCP is retrofitting RTGs from Konecranes to reduce carbon exhaust emissions

to an engine and call it ‘hybrid’, but because we manufacture our own drive and control systems, we are the only company that can conduct a full upgrade on a turnkey basis without compromising crane performance,” explains Scott Lane, VP of Konecranes’ US Port Services.

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

EQUIPMENT NEWS Peel Ports has invested in two new ship-to-shore (STS) cranes at the Port of Liverpool to support new ships being introduced by specialist carrier Atlantic Container Line (ACL), and also to handle anticipated growth from intra-European feeder services. The new cranes oﬀer increased height and reach capabilities and are for the port’s Terminal 1. By utilising high tensile steel and a lattice boom and beam construction process, the new Liebherr units allow lighter crane operations with reduced wheel loads – needed due to the narrow span and quay structure at the facility. Andy Abbott, CEO, ACL, explains the rationale for the new cranes. “Liverpool has been Atlantic Container Line’s home port in the UK for 54 years. The port has seen four generations of ships make calls twice a week, as technology changed, and transatlantic cargo volumes grew. ACL’s current generation of

STS FOR LIVERPOOL Container/RORO vessel is twice as large as its predecessor but uses the same footprint in order to fit through the lock at Royal Seaforth. To carry all the extra cargo, the new ships are

considerably higher, so high, state-of-the-art gantry cranes are essential in order to productively handle them.” The new cranes are expected to be operational at the start of 2022.

8 ShibataFenderTeam has delivered six sets of SPC 1100 Cone Fender Systems with a closed steel panel design measuring 2150 x 2150 mm and one SPC Double Cone Fender System consisting of two single systems for bulk terminal operations at Puerto Cortés, on the Caribbean coast, in northern Honduras. It is the first berth in Honduras built by using prefabricated construction items to support the preservation of the marine ecosystem

BRIEFS New Taylor Power Industrial lift trucks specialist, Taylor Machine Works, Inc. and zeroemission electric transit vehicles experts, Prottera, have announced a new collaboration for electric container handlers with high battery technology. The next-generation Taylor ZLC Series electric container handler will be powered with 904-kilowatt hours (kWh) of energy and the ZH Series electric forklift with 225-kilowatt hours (kWh) of energy using Proterra’s battery technology. Delivery of the first unit Is scheduled for 2022 with the two companies continuing their collaboration to help ports and other customers electrify equipment.

Visit us! MINExpo, Las Vegas, Nevada, USA September 13– 15, 2021 Central Hall, Stand 8471

SOME THINK SHIP LOADING CANNOT BE CUSTOMISED. WE THINK DIFFERENT. beumer.com

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

SEPTEMBER 2021 | 19

The adjustable spanner, invented in Sweden.

Johan Petter Johansson invented the adjustable spanner in Sweden, which is now a staple item in every mechanic’s and engineer’s toolbox. Bromma has continued this proud Swedish heritage of innovation by introducing the ﬁrst mechanical spreader to the market, fundamentally changing the way that containers were handled forever. Innovation, quality and reliability is what you can expect from Bromma, as it is what we expect from ourselves.

Bromma, leading through innovation. bromma.com

SAFE AND EFFICIENT LIFTING

LEEA SOUNDS LIFTING WARNING Ben Dobbs, Head of LEEA Technical Services, underlines the importance of ensuring correct lifting practices are in place and that there can be a big price to be paid if things go wrong For the past 75 years, the Lifting Equipment Engineers Association (LEEA) has been established as the leading representative body for all those involved in the lifting industry, worldwide. With a membership spanning public and private companies, the group is involved with the training and setting of standards right through from health and safety, the provision of technical and legal advice to the development of examination and licensing systems. In this article, LEEA draws attention to the importance of and requirement to ensure correct lifting practices are in place against a backdrop of referencing that recent cranerelated fatalities have resulted in, “multi-million pound fines, corporate failure, disbarment from being a director and in some cases jail sentences.” Indeed, Dobbs explains that in the area of ‘wet logistics,’ maritime and port operations, smooth operations depend on the ability to complete lifting activities on a reliable basis to ensure minimised downtime. Yet eﬃciency must be complemented by safe working at all times. Failure to comprehend this basic fact, can result in severe consequences beyond handicapping a company’s day to day progress - an accident, a visit from health and safety inspectors and, ultimately, punishment. FAILURES ARE AVOIDABLE Dobbs underlines that failures are entirely avoidable if all parties in the chain of responsibility perform their roles correctly and there is an understanding that lifting equipment has to be looked after. He states, for example: “Regular inspection on the structure of a port crane – its sheaves, the jib and the slew mechanism are just some of the areas of focus for maintenance programmes carried out in Wet Logistics.” Another area of concern in Wet Logistics operations that LEEA is keen to highlight involves One Trip Slings. These are designed for the specific purpose of attaching to, and accompanying, a specific load from source, through a defined number of handling operations, until the cargo reaches its final destination. Then, once the cargo reaches its final destination the sling must be destroyed and not reused. One of the main routes for one trip slings into a country is via cargo being discharged in ports but, as Dobbs points out, a lack of awareness of the one-time ne-time usage criteria with these slings can lead to their free passage out of the docks, rather than being destroyed once removed from the cargo. “Failure to do so and continuing to use them puts users at risk. Duty holders will be culpable in the event of failure and injury to persons, for not executing an adequate lift plan and taking adequate precautions to reduce educe the risks associated with these slings,” he argues. This factor leads directly y into another area of specific importance that LEEA highlights – namely, legal responsibilities. Here, the Duty Holder in a Wet Logistics operation is the individual al responsible for the lifting equipment in service within n their port or terminal operation – usually an employer or self-employed person, facility owner, person in charge of the he equipment or a hire company. o Dobbs, is that if the individual The concern, according to involved does not possess the skills or knowledge required,

it is necessary to delegate to qualified personnel or organisations. This does not absolve them of responsibility, but it does change the nature of their accountability. In addition, the Duty Holder must ensure that those undertaking the tasks are suitably qualified, experienced, trained and equipped – in short, competent for their task. Consequently, all employees and sub-contractors undertaking the task must be assessed, properly trained and provided with the necessary equipment for their role. For external organisations, the Duty Holder must have procedures in place for vetting their competency.

8 The new LEEA Code of Practice for the Safe Use of Lifting Equipment (COPSULE) is now available to download free

RECOMMENDED CODE OF PRACTICE LEEA’s latest and freely available product, COPSULE, is a recommended Code of Practice, providing expert guidance on safe lifting practice. It oﬀers comprehensive guidance on safe lifting practice; authoritative information written by impartial industry experts; up to date industry practice; and globally applicable guidance. 8 The LEEA Code of Practice for the Safe Use of Lifting Equipment (COPSULE) is now available to download free. The PDF version of the LEEA COPSULE Edition 9 can be found in the LEEA Document Library at leeaint.com

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

8 Ben Dobbs, LEEA

SEPTEMBER 2021 | 21

I T’ S YO UR M OV E. www.tideworks.com +1.206.382.4470

SOUTH AFRICA: PORT POLICY

SOUTH AFRICA: AT A CROSSROADS South Africa’s port sector is set for a major revamp including the ground-breaking step of oﬀering a container terminal concession to the private sector. Mike Mundy reports South Africa’s port sector is at a crossroads. It has been impacted by the recent unrest in the country which led to terminal closures and general disruption. Transnet Port Terminals issued force majeure notices for the Durban Container Terminal Piers 1 and 2, the Durban Roll-On/Roll-Oﬀ and multipurpose terminals, the Richards Bay multipurpose terminal and dry bulk terminals, and the Maydon Wharf bulk terminal. As of the end of July, however, the situation was progressively improving with a larger number of employees reporting for shifts following the recommencement of public transport services but with the port of Durban, the country’s main port, still facing problems relating to truck access due to road closures and fuel and food shortages. Progressive improvement was though, at this time, expected leading to an eventual normalisation of operations. A NEW NORMAL This ‘normal,’ however, is soon set to be a new normal with major structural changes lined up for the port sector including the corporatisation of the ports division of state-owned Transnet as well as the introduction of private sector expertise into container handling operations, an activity that to-date has been almost exclusively the province of Transnet. These proposed changes, to be introduced at the behest of President Cyril Ramaphosa, form part of a broad-based package of structural reforms which so far have also seen the partial privatisation of South African Airways (SAA) and the announcement that private companies will be able to generate 100MW of electricity for self-use. As explained by Ramaphosa, Transnet National Ports Authority (TNPA) will be corporatized, under legislation introduced 15

‘‘

The new Durban container terminal will be oﬀered as a concession… later this year years ago. It will be established as an independent subsidiary of Transnet SOC. “This,” Ramaphosa said, “will create a clear separation between the roles of the infrastructure owner – TNPA – and the terminal operator, Transnet Port Terminals (TPT). The functional and legal separation of these roles, which are currently operating divisions of the same company, will enable each to be fulfilled more independently and with greater eﬃciency.” He further highlighted the fact that under this new arrangement revenues generated by ports can be reinvested in the sector spanning upgrading works, new construction and equipment purchase with TNPA making its own investment decisions in this respect. Other stakeholders additionally point out that under this new structure it is logical that TNPA will be able to undertake a larger

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

oversight role over all terminal operators, a step that has significant potential to contribute to the overall goal of raising port eﬃciency. Transnet’s Annual Report for the year ending March 2020 confirms that operational performance has been declining at the ports of Durban, Cape Town, Gqwberha and Coega for several years. Equally, it is well known that port users have long complained about poor service levels coupled with high costs at South Africa’s main container ports, especially where the export of perishable food products is concerned many of which are sold with relatively small margins of profitability. PRIVATE SECTOR CONTAINER HANDLING Prior to the announcement regarding TNPT’s corporatisation Ramaphosa also made clear his views on private sector participation in the hitherto mainly state operated container terminal sector. In an open letter to the public, he declared the intention to achieve a large-scale expansion of the port of Durban including a new container terminal to be built at the Point Precinct. This new terminal, he explained, will be oﬀered as a

8 Plans have been laid for a major upgrade of South Africa’s port sector including a big boost to container capacity

concession with Transnet scheduled to bring this to the market later this year. Other key works to be undertaken in Durban include the deepening of the Maydon Wharf channel to provide access to larger vessels and infilling between Pier 1 and 2 to deliver further new container capacity. A total investment of US$7 billion is envisaged with a principal outcome being upscaling container capacity from the present level of 2.9mTEU/yr to an eventual annual throughput capacity in excess of 11mTEU. Also as an integral part of clearing the path for this to happen, and as a rationalisation in its own right, it is planned to move a variety of LNG and dry bulk operations from Durban to the port of Richards Bay. Eﬀectively, this confirms the intention to consolidate and expand Durban’s position as a major container hub while also upgrading Richards Bay to an energy and dry bulk hub enabling it to capitalise on opportunities such as the large scale gas fields being developed oﬀ Mozambique.

SEPTEMBER 2021 | 23

US GULF PORTS: EXTENDING MARKET REACH

MISSISSIPPI MARKET MOVES With larger vessels now centre stage, extended market reach is a prime target for US Gulf ports. The Mississippi is a strong focus in this respect including for the potentially game changing Plaquemines project. Mike Mundy reports

8 Figure 1: Asian Containers to the Midwest - the Mississippi alternative is coming alive

Container demand in the three major ports serving the US Gulf coast has bounced back strongly from the COVID crisis. The combined volumes of the ports of Houston, New Orleans and Mobile are likely to exceed 4m TEUs once again this year, following a stagnation in 2019. The structure of this demand is fragmented, with Houston – by far the largest port – primarily focusing on booming Texan demand and Mobile seeing demand linked to the immediate industrial cluster as well as rapidly developing Georgian demand. Houston has longer term plans to develop a third container terminal but in order to maintain its regional role will have to significantly improve vessel access via the Houston Ship Channel. Even with such a major (USD1bn+) project it is unclear if the port will be able to handle the largest new-Panamax container tonnage. The situation in New Orleans is more complex, with the existing container terminal focused on limited local volumes and strong containerised exports from the immediate hinterland. Interesting developments indicate that this is set to change. MISSISSIPPI – TAPPING THE POTENTIAL Historically, New Orleans terminals have been dominated by bulk export flows, with barging of goods downriver being the

24 | SEPTEMBER 2021

primary driver of demand. Grains have dominated these flows. It has, however, long been apparent to industry observers that the Mississippi and its tributaries represent an underused opportunity for container distribution – at least as far as Memphis and St. Louis and, potentially, beyond. The river also provides clear containerised export opportunities that are simply not available for the major Californian terminals. With congestion in San Pedro resulting in high delivered costs and major trade imbalances on the Asian trades the time is right to capitalise on this potential. Some significant changes will catalyse developments: 5 The improvement of the Panama Canal has already seen rapid increases in the size of container vessels on All-Water services from Asia. With 14,000 TEU+ vessels in these trades the shipping costs for containers have been transformed from the situation ten years ago when 5000 TEU was the norm. East Coast ports are catching up with this development, but only limited investment has so far been noted in the Gulf ports. 5 Container barging remains in its infancy on the Mississippi, but cost structures are favourable and new investment is scheduled for this environmentally friendly means of serving both the import and export sectors.

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

US GULF PORTS: EXTENDING MARKET REACH

‘‘

The US Gulf is moving from a secondary to front rank container market 5 The ports are improving, with dredging authorised to 50ft for New Orleans and to 55ft for a new Gulf Gateway Terminal (GGT) development in Plaquemines Parish downriver from New Orleans. The latter project will permit the berthing of the largest new-Panamax container vessels. There are also improvements planned for Houston and Mobile. These developments alone indicate the potential for a transformation of the much of the Midwest market – or at the very least, the availability of a new low-cost alternative. PROPOSED DEVELOPMENTS The primary focus of new potential is below New Orleans on the Lower Mississippi. The Port of New Orleans is seeking to provide capacity for further growth and has started the process for acquiring land for a new container terminal downriver from the older Napoleon Avenue terminal in St. Bernard Parish. This will be an expensive project and it is not clear if the largest vessels will be easily berthed – even with the completion of the 50ft dredging programme. A cheaper and, perhaps, better alternative will be the proposed Plaquemines development, located downriver and 50 miles from the open sea. The project calls for up to 8000 ft (2400m) of river berthage with a depth of 55ft (16.7m) and development land of at least 1000 acres (400ha+). Here, land is much cheaper and there is clear scope for developing dedicated domestic container on vessel facilities. There is also the potential to significantly upgrade the existing rail link to enable access to the major rail yards and the intermodal network. The Plaquemines project offers a compelling transport cost rationale, with use of new-Panamax deepsea container vessels (14,000 TEU+) and relatively low-cost stevedoring and inland vessel operations indicating a cost saving of at least US$400 per 40ft container for imports into the Memphis and St. Louis markets versus use of West Coast terminals. In addition, there are greater export opportunities for medium value manufactured goods and speciality dry bulks from this region which further boosts the attraction of the route. Transit times to Plaquemines may be longer than via West Coast ports but given recent experiences with congestion in Los Angeles/Long Beach this may not be quite the issue it has seemed in the past. MARKET SECTOR POSITIVES A deepwater terminal on the Lower Mississippi (as proposed by Plaquemines) would have significant potential: 5 The Midwest market drives total US demand with at least 30m TEU generated annually. Of this, at least 12m TEU is generated in the river states downstream of the major lock systems. With a low cost and efficient container on vessel operation, it is reasonable to think that at least 15 per cent could be served via the river – and perhaps much more. 5 The local one-day trucking market of Louisiana, Mississippi and eastern Texas (Houston) could certainly offer the potential of a further 1-1.2m TEU – significantly greater than the current volumes of the New Orleans facilities. 5 Provision of an efficient rail link to/from Dallas will also provide significant additional potential in direct competition with West Coast and Houston routeings.

5 Transloading of seaborne goods into domestic containers and trailers for onward rail movement is a major feature on the West Coast but is largely undeveloped on the Gulf. 5 Transloading operations at Plaquemines would open up a much broader continental potential hinterland. The combination of these markets oﬀers a real commercial rationale for development.

8 Figure 2: The proposed Plaquemines development – a potential game changer

DEVELOPMENT PARTNERS Plaquemines has generated considerable interest from key industry players. Discussions are underway with APM Terminals for the operation and management of the terminal, with APM backing the project as a gateway for the Midwest and as a complementary step to their existing (and expanding) presence in Mobile. In addition, Plaquemines is in close discussions with the inland vessel operator, American Patriot Holdings (APH), who are committed to the development of new modern LNGfuelled ‘Hybrid’ vessels to link a dedicated inland vessel terminal with the major markets of Memphis and St Louis. An ambitious investment programme will call for an initial four vessels to provide a weekly service. These vessels will offer a capacity of 1800 TEU and are designed for rapid handling. Once established, APH plans to increase services to Cairo, Joliet, Kansas City, and western Arkansas. The scope is enormous, here. Prior to the commissioning of these new vessels there is major potential to offer a more conventional container on vessel system in order to catalyse development. Union Pacific is also a major potential stakeholder for the project and Plaquemines has plans to rationalise and improve the existing rail link from Plaquemines to the major railyards off-dock southwest of New Orleans. GAME CHANGER The potential is clearly there for new capacity to radically alter the container options for the Midwest and the Texas markets. The presence of a new greenfield project on the Lower Mississippi has the potential to radically change US container distribution. Handling the largest vessels capable of transiting the Panama Canal with an environmentally sensitive imperative together with multimodal connectivity represents an innovative solution. Current problems (and costs) associated with using the Californian ports have already emphasised the renewed viability of the All-Water option. The ‘planets’ are aligning for these developments and the underlying transport cost position is compelling. Interestingly, it seems that the potential will now be realised.

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

SEPTEMBER 2021 | 25

RUSSIA: PORT DEVELOPMENT

RUSSIA DOWN BUT NOT OUT With the notable exception of Kaliningrad, Russia has seen cargo growth stagnate during the pandemic but now, as Eugene Gerden explains, extensive plans are being laid for better times ahead

8 Kaliningrad is the exception to the rule with cargo throughput climbing – 400,000TEU is expected this year

The Russian port sector is gradually recovering from the pandemic and its consequences, which have seen growth rates registered significantly lower than those of prepandemic times. According to the latest data, provided by the Federal Agency for Maritime and River Transport of Russia (Rosmorrechflot), in the period January - June 2021 total cargo traffic at Russian seaports grew by only 0.3% compared to the same period last year, amounting to 412.13 million tons. For over 20 years, cargo traffic at Russian seaports was in the “green” zone of continuous growth, however the beginning of the pandemic led to the interruption of this impressive cycle. KALININGRAD THE EXCEPTION The notable exception to this general trend is the port of Kaliningrad, where since the beginning of this year traffic has grown by 70% compared to the equivalent period last year, with this growth currently ongoing. Interestingly, Andrey Moshkov, Deputy Director-Head of the Kaliningrad Department of the North-Western Basin Branch of “Rosmorport” notes: “We expect that this year we will achieve the best growth figures since 2012. There is every reason to believe that we will exceed the level of 400,000TEU for the first time in the history of the port. This became possible due to the development of the transit flows of cargo from China through the port of Kaliningrad to the ports of Europe. We are currently getting closer to the container turnover of the Latvian port of Riga.” The development of the port of Kaliningrad is currently a top priority for Russia with state plans aiming to achieve the re-direction of the remaining 40 million tonnes of Russian cargo flows moving via the ports of Lithuania and Latvia to Russian Baltic ports. For this purpose, the modernisation of the port of Kaliningrad and other Baltics seaports, particularly the Big Port of St. Petersburg, is ongoing. ST PETERSBURG PROJECTS An official spokesman for the port of St Petersburg confirms that this year the Port plans to implement some major investment projects directed at developing port facilities, modernising existing infrastructure and thereby building cargo traffic. Speaking exclusively to Port Strategy he points out:

“One of the most important projects involves building a terminal for the handling of wood pellets, which will raise the handling capacity for this cargo up to one million tonnes annually. There are also plans to facilitate an increase in the handling of ferrous metals. For this purpose, new areas for open and covered storage of cargo will be established as well as new berth and rail system capacity.” There is also a strong possibility that the proposed initiative for the transfer of the certain port facilities outside the boundaries of the city of St. Petersburg will soon be implemented (see Port Strategy, June p21). Significantly, on July 26 during a meeting on the development of the St. Petersburg transport hub Vladimir Putin, Russian President, once again supported this initiative.

‘‘

Russia aims to ‘bring home’ the 40 million tonnes/yr of Russian cargo still moving via Latvia and Lithuania NOVOROSSYISK DOUBLING DRAFT Also figuring strongly in state plans are comprehensive development works at the port of Novorossyisk, Russia’s major Black Sea port. Igor Terentyev, Deputy General Director of the port, points out: “The volume of investment in the development of the port this year will amount to RUB 46 billion (US$625 million). A major output will be almost doubling the available depth at the port which will allow it to accommodate larger capacity vessels. Additionally, the warehouse capacity of the port will be doubled as well as new quay line established.” Implementation of these plans forms part of a large-scale investment programme for Novorossiysk seaport, which foresees a total investment of RUB 108 billion (US$1.46 billion) in the period to 2029. Looking at the bigger picture, the projects highlighted above represent key components of ambitious state plans for an overall increase in the capacity of Russian seaports by 300 million tons of cargo per year by 2024.

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

SEPTEMBER 2021 | 27

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AFRICA: CENTRAL CORRIDOR

TANZANIA TARGETING PROGRESS Africa’s Central Corridor, utilising Dar Es Salaam as its gateway port, is concluding a phase one upgrade introducing new rail capacity. AJ Keyes investigates the progress made and what is next

8 Figure 1

The Central Corridor in Tanzania connects the Port of Dar es Salaam by road, rail and inland waterways to Burundi, Rwanda, Uganda and the Eastern part of the Democratic Republic of the Congo, plus all of central and northern-western Tanzania. Along with the Northern Corridor (which was reviewed in the June 2021 edition of Port Strategy), the Central Corridor is part of the Central Corridor Transit Transport Facilitation Agency Agreement (CCTTFA) concluded in 2006, by the five Governments of the Republic of Burundi, the Democratic Republic of the Congo (DRC), the Republic of Rwanda, the United Republic of Tanzania and the Republic of Uganda. The purpose of the Agreement is a simple one, to provide the most eﬃcient and eﬀective route for the transportation of goods by surface and lake transport between the countries. Figure 1 provides an overview of the cargo routing from the Port of Dar Es Salaam and the onward reach into the hinterland of Tanzania, before connecting with other locations in neighbouring landlocked and other countries. In terms of demographics and potential demand to support the Central Corridor project, these factors are certainly positive. The countries involved with the Central Corridor (and Northern Corridor) possess a substantial population, currently around 277 million people, according to the World Bank/UNCTAD, which represents an increase of three per cent over 2018, with projections that the figures will continue to increase moving forward. With this population and an

estimated surface area of nearly 4.8 million km2 (according to Tanzania’s Central Corridor Transit Transport Facilitation Agency), there is a massive potential market for trade activity. There continues to be growing cargo volumes through the port facilities at Dar Es Salaam – this is important as it represents the starting point for international cargo arriving (and to a lesser extent departing) Tanzania and the Central Corridor initiative. Table 1 provides a summary ofDar Es Salaam throughput to final destination between 2016 and 2019, according to the Central Corridor Transit Transport Facilitation Agency and Northern Corridor Transit and Transport Coordination Authority. Total volumes across the regional countries served have increased from over 12.9 million tonnes in 2016 to almost 15.4 million tonnes by the end of 2019. Tanzania is by far the largest contributor to these volumes, with just under 9.5 million tonnes in 2019, followed by DR Congo with over 1.9 million tonnes and Rwanda with 1.2 million tonnes. The other key factor here is the breakdown to local areas (of Tanzania) which is classified as transit goods, therefore moving beyond the country borders of Tanzania. Here, there is a clear growth in cargo volumes moving to transit markets, with the 2016 total for imports of 3.9 million tonnes rising to over 4.8 million tonnes by the end of 2019. Of course, these volumes are still the smaller component of overall activity, with the local tonnages much larger – for example, localised imports were 8.1 million tonnes.

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

SEPTEMBER 2021 | 29

AFRICA: CENTRAL CORRIDOR Nevertheless, there has been a change in shares in recent years. For example, in 2016 the share of transit imported tonnes passing through Dar Es Salaam represented 30 per cent and by 2019 had risen to 32 per cent. At the same time, the transit export volume share has risen over the same timeframe from four per cent to seven per cent. These increases have occurred at the expense of localised cargo activity, with the imported share falling from 56 per cent in 2016 to 53 per cent for 2019, with the proportion of exports also falling slightly over the period, from 10 per cent to nine per cent. Data from the Central Corridor Transit Transport Facilitation Agency and Northern Corridor Transit and Transport Coordination Authority also confirms that the total import route costs from Dar Es Saleem to Kampala via Mwanza and Port Bell can be achieved at US$1,460 per 20ft and US$2,730 per 40ft for the 1,780km journey. So, there is multi-national buy-in for the network system, plus a substantial population to be served and cargo volumes needing to be moved, with transport costs known. All the major factors needed to support a trade corridor, but it just means that the infrastructure has to be able to available, accessible and eﬃcient. There are five phases to the overall Central Corridor rail system development with the total phased construction covering 1315km. With the East Corridor component, the network runs to around 2560km, with the Northern Corridor from Mombasa adding additional coverage too. In 2017, the contract for Phase 1 rail system development

30 | SEPTEMBER 2021

‘000 Tonnes

2016

2017

2018

2019

Tanzania

8,461

7,807

9,452

9,489

DR Congo

1,153

1,177

1,780

1,914

Rwanda

863

1,061

912

1,239

Burundi

320

416

380

453

Uganda

166

272

189

141

1,963

2,382

1,914

2,125

12,926

13,115

14,627

15,361

3,903

4,654

4,252

4,841

562

654

921

1,031

Local: In (Imps)

7,190

6,704

8,307

8,147

Local: Out (Exps)

1,271

1,103

1,144

1,342

Transit: In (Imps) – Share %

30%

35%

29%

32%

Local: In (Imps) – Share %

56%

51%

57%

53%

Local: Out (Exps) – Share %

10%

Other Total Traﬃc

Transit: In (Imps) Transit: Out (Exps)

Transit: Out (Exps) – Share %

8 Table 1: Cargo Volumes Using Dar Es Salaam – Transit and Local (Tanzania), 2016-2019

connecting Dar es Salaam to Morogoro, plus capital city Dodoma, was signed, with construction subsequently commencing in Q2 of that year.

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

AFRICA: CENTRAL CORRIDOR This first phase between Dar Es Salaam ad Morogoro via rail represents a journey time of 1.5 hours, compared to around 4.5 hours by road. At the same time, the new freight trains operate at 120kph, whereas the older diesel locomotives had a top speed of just 40kph. Clearly, the new routing will be a quicker and more environmentally-friendly option. Funding for the first two phases involved the government of Tanzania reportedly securing a US$1.46 billion loan from Standard Chartered Bank, although Exim bank of China has also confirmed provision of US$7.6 billion of funding for the overall project. By November 2020, Phase 1 was reported to be 90 per cent complete. Testing has been undertaken in July 2021 and the full commercial service is scheduled to be in operation before the end of 2021. Most recently, in July 2021, the Tanzania Railways Corporation (TRC) confirmed it had awarded the contract for manufacturing and supplying the rolling stock to South Korean firm Hyundai Rotem. The order is made up of 17 electric locomotives costing US$105 million and 80 electric multiple units (EMU) in a deal worth US$190 million. All equipment is a combination of electric and energy eﬃcient models, with deliveries due in 2024. By November 2021 a batch of 42 locomotives are expected to arrive at the Port of Dar Es Salaam, with an investment of US$50 million in rolling stock from South Korea placed during 2020 too. However, the process to complete the 202km of rail tracks and six train stations at Dar es Salaam, Pugu, Soga, Ruvu,

Ngerengere and Morogoro has taken almost four years. This could mean that to finish the remaining phases of development is easily going to potentially take many more years – a time window that needs to be reduced. CHALLENGES One of the biggest challenges to the entire project is that historical demand for rail use has been declining as the road network expands. This is despite the advantage of rail over road in covering longer distances more quickly and lower fuel costs. Furthermore, in Tanzania there are two other (ongoing) factors generating challenges for rail to overcome. First, unless a rail station is at the final destination or the original origin of what is being shipped, rail is inevitably multimodal and requires goods to go through a modal shift (usually roads, or, as was the case in Mwanza, ferries). Second, road transport traditionally allows for considerably more flexible scheduling of the beginning of a shipment, and for better information on the progress of the shipment. There is also a need for better harmonisation of regulations throughout the wider regions, with interaction between diﬀerent countries brining regulatory and policy inconsistencies that stifle cross border trade - implementation of a Single Customs Territory and one stop border points are good examples of the current challenges still being faced. At a port level, the Dar Es Salaam Maritime Gateway project is targeted for a 2024 completion and will reportedly see capacity at the port increase to 25 million tons per annum.

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

SEPTEMBER 2021 | 31

AUSTRALIA: MARITIME POLICY REFORM

AUS’: THE REFORM DEBATE A new report from Australia’s Productivity Commission adds fuel to the fire of proposed maritime sector reforms – the battle lines are being drawn. Mike Mundy reviews the pros and cons

8 There are pros and cons on both sides of the reform argument but is the strong hand of government an appropriate vehicle to bring about meaningful reforms?

There is an interesting article that has recently been posted on the website of Shipping Australia, the industry representative body, the focus of which is vulnerabilities in supply chains. It is written by economist Catherine de Fontenay of the University of Melbourne and provides insight into the report which she co-authored on behalf of the Productivity Commission aimed at identifying significant vulnerabilities in the supply chain and, importantly, ways of dealing with them. The origins of the report go back to Treasurer Josh Frydenberg who initiated the Productivity Commission’s work in this area following the impact of COVID-19 which, particularly when it first hit, exposed supply chain vulnerabilities. There is a common perception that Australia is potentially more open to supply chain problems due to the extended distances over which most import and exports– containerised and others – move. The Productivity Commission’s report, formally entitled Vulnerable Supply Chains and released on 13 August 2021, does not, however, identify this as a major factor. The research undertaken was empirical – fact driven – and basically sees the main impediment to the eﬀective performance of supply chains as due to “market concentration” related to supply, which it says creates vulnerability. The approach taken to examining the cause of such problems, which basically first raised their head in conjunction with the supply of products such as sanitiser and masks, was to undertake “a broad scan of data,” a macro look. Catherine de Fontenay explains: “Our approach was to first identify the

products that were vulnerable to supply chain disruptions and then to identify which of them were used in essential industries.” She elaborates: “Australia imported 5862 diﬀerent products from 223 countries in 2016-17. The biggest suppliers were China and the United States. Combined, they accounted for just over one third of the value of goods imported. We found that 1327 of the 5862 products – one in five – came from concentrated import markets” The most concentrated commodities were chemicals, iron and steel, and equipment. Other products such as seafood and some types of clothing were also identified as concentrated. The next step was to consider how markets were likely to respond to a disruption of supply or spike in demand. It was concluded that “…shortages trigger a period of uncertainty during which existing contracts and personal relationships help determine who gets goods first. “But fairly soon after, who gets what is determined by the prices buyers are willing to pay.” Hence the conclusion arrived at was that: “…a product is vulnerable if much of the world supply is concentrated in one country; if that country experiences a natural disaster or other shock, the remaining world supply is very limited, and prices will be astronomical.” The report determines that China is the main supplier of vulnerable products to Australia, approximately two thirds of the goods identified as such. Yet many of the imports

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

SEPTEMBER 2021 | 33

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AUSTRALIA: MARITIME POLICY REFORM

‘‘

He who governs least, governs best. Thomas Jeﬀerson

classified as vulnerable “are not critical to the wellbeing of Australians.” The essential supplies that were specified as susceptible basically boiled down to personal protective equipment and certain chemicals. So how does knowing all this help, what action can be taken to minimise or eliminate supply chain problems? REFRESHING CONCLUSION Two main conclusions are drawn from the report Vulnerable Supply Chains. The first is that onshoring cannot always help. As Catherine de Fontenay notes: this: could not have prepared us for a tenfold spike in demand for personal protective equipment unless we produced multiples of what we needed.” And similarly, taking the case of the Pfizer vaccine, “this would still require importing 280 components from 19 countries, some of which are the true source of scarcity according to Pfizer.” The second conclusion is a refreshing and practical one: namely, that government should be responsible for managing their supply chains (for example with hospitals), and private firms should be responsible for theirs. Specifically, no major scope is seen for government intervention across the board… “…government should intervene in private markets only when the private firm is more tolerant of risk than the nation.” The conclusion is refreshing because in so many respects Australia is now the focus of calls for government intervention of one form or another. “As one industry observer puts it, Australia is building a reputation for taking the English bureaucracy of the old days to a new level.” Indeed, this is not a problem that has gone unnoticed previously with many tomes initiated on the subject even from much earlier days when papers such as Fighting Australia’s Over Regulation were circulated. This carries on its cover page the well-known quote from Thomas Jeﬀerson, “He who governs least, governs best,” as a hallmark of its thinking. HOT ISSUE The hot regulatory issue at the moment in Australia’s maritime sector is the Freight Trade Alliance (FTA) and Australian Peak Shippers Association (APSA) backed call for a formal shipping review and introduction of a Federal Maritime Regulator. This view, however, is countered by Shipping Australia which does not view such steps as appropriate. All three industry representative bodies understandably take positions which they say reflect the views of their members. FTA/APSA’s view of the requirement for a shipping review and introduction of a Federal Maritime Regulator is based on what it sees as the necessity of protecting the Australian trade sector – importers, exporters, freight forwarders and cargo owners. A central feature of the two bodies argument for a shipping review is that Part X of the Competition and Consumer Act 2010, which they say gives shipping lines access to a “wide suite of exemptions from competition law,” needs comprehensive reform. The alternative idea is promoted of a class exemption regime, “with terms to be drawn as narrowly as possible to permit the desired activities to be operationalised.” “A class exemption,” they explain at some length, “is a way for the Australian Competition and Consumer Commission (ACCC) to grant a business exemption from competition law for certain ‘classes of conduct’ that may otherwise carry a risk

of breaching competition laws, but do not substantially lessen competition, and/or are likely to result in overall public benefits.” As envisaged, “it would operate alongside the ACCC’s existing ‘authorisation’ and ‘notification’ processes, in which a business that falls outside the class exemption could still seek a legal protection on a case-by-case basis.” The call for a Regulator is postulated against an environment of what is described as limited shipping capacity, operational disruption, restricted access to market and rapidly increasing costs. With both initiatives opposing parties raise the spectre of ever-increasing regulation tying the hands of parties in the logistics chain so that they are unable to act in a commercial manner to the detriment of the respective services they provide. The prospect of ever creeping regulation is not one that is accepted on a universal basis – terminal operators for one. The point is made by more than one party that the architecture of Australia’s regulatory apparatus is such that it already generates significant critical mass – Federal (Parliament), State and territory parliaments and local councils all operate as engines of regulation. For its part, Shipping Australia states with regard to shipping reform that the regulation of its members is not required as there are multiple entities openly competing – i.e. market forces at work.

8 Is the current climate the right one in which to frame maritime policy reforms?

TIME FOR CHANGE? Much of the current push for shipping reform and introduction of a Federal Maritime Regulator has been borne out of the turgid time Australia has endured under the influence of COVID-19. There is, however, a fundamental question to ask in this respect: has what the country has endured, and to some extent continues to be impacted by, been so much worse than the experience of other countries? There is common experience visible and as such it begs the question, is it appropriate to leverage significant regulatory/ governance change against this non-normal background? Admittedly, the exceptional factor in Australia has been ongoing port labour related problems but looking back down the years these are hardly totally surprising. The words of Thomas Jeﬀerson are perhaps worth reflecting on!

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

SEPTEMBER 2021 | 35

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TRANS SIBERIAN RAILWAY

TSR: PLANS BUT PROBLEMS Oleksandr Gavrylyuk highlights the recent Ever Given type incident on the TSR and identifies future system capacity expansion plans On 23 July 2021, high water resulting from days of heavy rains in Russia’s Far Eastern region of Chita (to the east of the Lake Baikal), severely damaged a rail bridge which forms part of the Trans-Siberian Railway (TSR) some 300km (190 miles) north of the border with China and Mongolia. The collapse of the 33-metre-long old bridge (built in 1908 and upgraded in 1934) paralysed the operation of the world’s longest rail line (9289 km or 5772 mile) for about a week. Despite all the efforts of Russian Railways (RZD), the country’s state-run railroad monopoly, to resume the suspended traffic in the shortest possible time, more than 500 trains heading in both directions found themselves in a jam. The accident’s consequences can be compared with those of the Suez Canal congestion earlier this year, according to Maria Nikitina, a Russian independent transport and logistics expert. “This situation demonstrates our fundamental transport vulnerability and the colossal risks associated with the lack of alternatives to the TSR,” she says. Running from Russia’s European sector to its Pacific port of Vladivostok, the transcontinental transportation artery has been playing a vital role for the Russian economy since its inception. Built during the Tsarist period, between 1891 and 1916, the Trans-Sib was intended to bind together Russia’s immense territory, stretching for thousands miles across the entire Eurasian continent. However, as time progressed, the line’s capacity proved to be inadequate. As a result, in 1974, the Soviet government-initiated construction of the 4324 km (2687 mile) long Baikal-Amur Mainline (BAM) running about 610 to 770 km (380 to 480 miles) north of and parallel to the Trans-Sib. The project was declared complete in 1991 with the break-up of the USSR. The turbulent decade after the Soviet Union’s dissolution saw the dramatic transformation of Russia’s political and economic system. It was only the arrival of the new millennium that marked a gradual revival of its economy, especially intensive exploration and the production of Russia’s vast mineral resources. Under the circumstances, the two lines jointly designated as the Eastern Range (ER) of Russia’s railroads became instrumental in exporting its coal, ore, grain and other commodities to both European and Asian-Pacific markets. For instance, Kuzbass, the country’s principal coal producing region is situated in Central Siberia and it is only the Trans-Sib that connects it with Russia’s Baltic/Black Sea and Pacific harbours. As the Kremlin kicked off a large-scale privatisation of the operation of domestic seaports, Russia’s vertically integrated industrial conglomerates picked the best bits. Determined to tap into the growing global demand for natural resources, they incorporated the newly acquired harbours into their rapidly developing supply chains. Having, however, heavily invested in the expansion of the ports’ handling capacities, their new owners have found themselves restricted by the ER’s limited capacity. This has been especially the case with the Pacific harbours, with the European Union’s decarbonisation agenda effectively switching the focus of Russian coal exports to Asian markets. Since hydrocarbons and other natural exports generate

the bulk of Moscow’s incomes, it has prompted it to focus on the further development of the country’s transport infrastructure, including in the ER. THEORY INTO PRACTICE? Given the foregoing, Russia’s government has this year approved phase two of the two railroads’ upgrading, aiming to expand their aggregate capacity by a factor of 1.5 to 180 million tonnes by 2024. While ambitious plans have been laid, a fundamental question is, will theory go into practice? Unable to finance all the strategically important infrastructure projects on its own, Moscow has long been enlisting the support of privately held businesses through “public-private partnership” (PPP) agreements. Accordingly, the government has welcomed an initiative of the Moscow-headquartered investment company A-Property to fund the building of a new 486 km-long rail line that would link the Elga coalfield in Yakutia (East Siberia) with the Pacific coast (Sea of Okhotsk). Last year, A-Property acquired a 100% interest in the firms operating Elga, one of the world’s largest coking coal deposits with reserves reaching 2.2 billion tonnes, and has, since then, been increasingly interested in establishing its own export corridor. To be constructed under the third stage of the ER’s development programme (2024-2030), the new line would facilitate the expansion of Russia’s annual coal exports by 30 million tonnes, according to Albert Avdolyan, A-Property’s Principal. Also requiring the construction of a new Pacific harbour, the project is estimated at to cost US$2.5–3 billion. While the planned upgrading of the ER requires 15,000 workers today and up to 20,000 in the immediate future, the actual achievable figure, as calculated today, is around 11,000. To bridge the gap, Moscow has embarked on enrolling about 1000 conscripts and 1000 of convicts. This still does not solve the problem and thus according to Oleg Belozerov, Director General, RZD, there is a plan to invite guest workers from the former Soviet republics of Central Asia, such as Uzbekistan, Tajikistan and Kyrgyzstan. It will be very interesting to see how the ER development programme progresses – will it overcome the raft of challenges it faces? The jury is still out on this.

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

8 The TSR is vital to Russia’s earning power via dry bulk commodity exports, notably coal, which, in turn, has proved a catalyst to rail capacity expansion plans

SEPTEMBER 2021 | 37

CONTAINER PORT DEVELOPMENT

PRIORITY PORT PROJECTS Felicity Landon reports on a cross-section of key container port investments and developments underway in the Middle East, Africa and Asia

8 Hutchison Ports is developing a new two million TEU capacity container terminal at Abu Qir, Egypt with total investment put at US$730m

There is no arguing with the fact that COVID-19 has brought extraordinary upheaval in the world of shipping. First it was blanked sailings and falling volumes. Then it was huge demand, with volumes bouncing back, shortages of containers, and associated delays and congestion. Ports, as ever, have been in the fallout zone – coping with the cargo extremes while finding ways to operate in a Covid-safe way, often with depleted workforces. Yantian stands out as a case study; the port suﬀered a month-long partial shutdown because of a COVID-19 outbreak amongst the workforce and finally returned to normal operations towards the end of June. And yet, in its first-half results, Hutchison Port Holdings Trust reported that YICT’s throughput to the end of June was 21% above last year’s. In the first half of 2021, throughput at HPHT Kwai Tsing and YICT benefited from a global economic rebound from the COVID-19 downturn, particularly for outbound cargoes to the USA and Europe. Against this background, numerous port investment projects are still progressing across the Middle East, Africa and Asia, particularly as major operators seek to build on their presence in key markets. A cross-section of key, operator driven, projects are highlighted below: ASIA - THAILAND: LAEM CHABANG Terminal D, Phase 1 is now fully operational with 1000 metres of operational berth, six super-post-Panamax ship-to-shore cranes and 20 RTG cranes, all being operated electrically using remote control technology. Hutchison Ports Thailand is now progressing with the completion of the remaining phases of Terminal D. Construction of the final 700 metres of berth was completed earlier this year, and plans for the construction of the remaining phases of yard and the deployment of remaining cranes are now underway, explains a spokesman. On completion, Terminal D will have a capacity of

38 | SEPTEMBER 2021

approximately 3.5m TEU and will be one of the first container terminals in the world fully operated by ship-to-shore and RTG cranes that are all remotely controlled. “The use of such technology has improved overall accuracy and safety, and has significantly reduced the level of carbon emissions. Terminal D has just been awarded the ISO14001 certification for environmental management. We are also seeing gradual improvements to berth productivity,” the spokesman explains. Hutchison has been piloting six automated, driverless trucks at Terminal D so as to ascertain whether full-scale deployment is technically and operationally feasible. “In addition, we are rolling out a programme of the digitalising of our landside processes at Terminal D and also at our other terminals at Laem Chabang. This includes the automation of our gate procedures to become paperless, with the driver holding a pre-cleared card which can be swiped in a machine at the gate which our terminal operating system will immediately recognise. RFID technology will identify the truck as the driver takes it to the appropriate stack in the yard to discharge or collect the container. We have also implemented a system of issuing electronic invoices to our customers which has significantly reduced paper usage and are now rolling out an electronic payment system and, working with our major shipping line customers, an electronic delivery order system for more eﬃcient container collection by consignees. “We are rolling out a digital platform to integrate and control the entire scope of our terminal operations including yard and gate operations, overall operations monitoring and equipment utilisation. All current and future ship-to-shore cranes and rubber tyred yard cranes are being and will be operated using remote control technology.” MIDDLE EAST – EGYPT: ABU QIR Hutchison Ports signed an agreement with the Egyptian Navy in 2020 for the development and operation of a two

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

CONTAINER PORT DEVELOPMENT

‘‘

Numerous port investment projects are still progressing

million TEU capacity container terminal in Abu Qir, with the total investment put at US$730m. The new terminal, to be built inside the Abu Qir naval base, will provide 1200 metres of quay and a 60-hectare yard, with space earmarked for another 100 hectares. The first phase of the new port is expected to start operations next year. The facility will be linked via a new road to Alexandria, within 20 kms of the port, and to Egypt’s national road network. MIDDLE EAST - EGYPT: ALEXANDRIA Pier 55, the new multipurpose terminal being built at the Port of Alexandria, will start operations in 2022, says CMA CGM, which has a long-term concession for operation and management of the facility. The 56-hectare terminal will provide more than two kilometres of quay and a capacity of about 1.5m TEU. MIDDLE EAST – SAUDI ARABIA: JAZAN In February this year, Hutchison Ports signed an agreement with the Royal Commission in Jubail and Yanbu, to invest in and operate JCPDI Port in Jazan City. The multipurpose port is being developed in two phases. A general cargo and dry bulk terminal, with 540 metres of quay, will launch this year, to serve JCPDI tenants. The first phase of a new container terminal is expected to start operations early next year, with 730 metres of quay. Both facilities will have 16.5 metres water depth. JCPDI Port is on China’s Belt and Road Initiative and is Saudi Arabia’s closest port to East Asia. The new terminals are expected to support economic growth in the whole region, including serving eastern and southern Africa. MIDDLE EAST – OMAN: SOHAR Sohar Port and Free zone and Hutchison Ports Sohar are carrying out a feasibility study into plans to expand the port and develop a new container terminal to accommodate mega container ships. The study will consider the social environmental, logistical and economic impacts for an expansion – which, the partners say, will enhance Sohar Port’s competitiveness at regional and global levels. Sohar Port and Free zone reported a 21% increase in throughput in the first quarter of 2021, a figure which included 25% growth in dry bulks to nearly 9m tonnes, breakbulk and liquid bulks both up by 7%, and containers up 1.8% to 197,000 TEU. AFRICA – SOMALILAND: BERBERA DP World is investing heavily in its operations in Africa – not only in sea ports themselves, but also in facilities to serve the needs of landlocked countries in the hinterland. As the demand for consumer goods in these markets continues to grow, so the ‘corridor’ becomes a focus. In May DP World signed an MoU with Ethiopia’s Ministry of Transport with the aim of developing the Ethiopian market tributary to the Port of Berbera in neighbouring Somaliland. The plan is to establish a joint venture logistics company through which DP World will oﬀer services from origin in Ethiopia up to Berbera Port for exports, while for imports it will oﬀer movement from the port of loading to one of the dry ports in the hinterland or the final destination. DPW and its partners envisage investing up to US$1bn over the next ten years in developing the supply chain infrastructure along this corridor, including dry ports, silos, warehouses, container

yards, cold stores, freight forwarding and clearing. DP World’s new container terminal at Berbera was oﬃcially opened in June; providing 400 metres of quay with 17 metres depth and three ship-to-shore gantry cranes, it has increased the port’s container capacity from 150,000 TEU to 500,000 TEU. The company is committed to a US$442m investment at Berbera. A second phase will increase capacity to 2m TEU by extending the quay to 1 km and installing another seven gantry cranes. Work is now under way to create the Berbera Economic Zone, which is being modelled on the Jebel Ali Free Zone in Dubai.

8 DP World has completed the first phase development of the port of Berbera, Somaliland providing a 500,000TEU container handling capacity

AFRICA – SENEGAL: NDAYANE DP World has an agreement with the Government of Senegal to develop a new deepwater port at Ndayane, which it says will further reinforce Dakar’s role as a major logistics hub and gateway to West and Northwest Africa. DP World Dakar will develop and operate the 300-hectare terminal and also finance, design and develop the land and maritime infrastructure of the new 600-hectare port. The US$837m first phase of this project will provide a container terminal with 840 metres of quay and a new five-kilometre marine channel capable of handling the largest container ships in the world. A second phase, costing US$290m, will create another 410 metres of container quay and further dredging of the channel. AFRICA: HINTERLAND FOCUS Djibouti Port Community System (PCS) has developed a package of digital solutions aimed specifically at facilitating the flow of cargo across the border into landlocked Ethiopia. About 95 per cent of Ethiopia’s imports pass through Djibouti’s ports, says Warsama Mouhoumed Bouh, CEO of Djibouti PCS. Through the PCS’s electronic information exchange, customers are said to be saving as much as five hours per consignment, with most documentation finalised within an hour. Data has been analysed to identify bottlenecks and adjust processes accordingly, and tracking services are also supporting the smooth flow of this transit traﬃc.”

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

SEPTEMBER 2021 | 39

URUGUAY: MONTEVIDEO TERMINAL DEVELOPMENT

MONTEVIDEO HUB HOPES

2KEVWTG 4QD 9CTF

With priority now established for TCP in container handling and Paraguayan transshipment returning the ambition is to establish Montevideo as the leading regional hub

Having ditched its legal challenge against the Uruguayan government Terminal Cuenca del Plata (TCP) is gearing up for a massive US$455 million investment programme over the next few years which will, TCP’s management hopes, catapult the facility into becoming THE hub port for the River Plate, as well as southern Brazil, The Katoen Natie (Belgium) controlled container terminal, had begun the process of suing the Uruguayan government despite, ironically, the state-controlled entity, the Administracion Nacional del Puertos (ANP, or National Port Administration) holding a 20 per cent stake in TCP. Although Katoen Natie opened for business in Montevideo back in 2001, on the understanding that it would be a “dedicated box terminal” and the main container facility for the Uruguayan capital, Montecon, the user of the public berths, has been handling more boxes than TCP since late in 2015, much to the chagrin of TCP and Katoen Natie. During 2020 Montevideo as a whole handled 765,000TEU with Montecon taking 57.4 per cent of the containers, and TCP a relatively miserly 43.6 per cent. That figure is 22.7 per cent down from the record 940,000TEU handled in 2017. “We have been complaining that in recent years the Port Law has not been applied in the way it was initially envisaged when we signed up for the tender in the first place [more

8 By midSeptember it is estimated 70 per cent of Paraguayan transshipment will have re-crossed the River Plate back to Montevideo

than 20 years ago],” says Gonzalo Hontou, Commercial Manager for TCP; which will now have priority for all box vessel calls and will oversee the gradual transfer of four remaining deep-sea calls from Montecon to TCP. Montecon view the situation through a very diﬀerent lens and are asking the Uruguayan government to “strongly reconsider” its agreement with TCP as it has created a “virtual monopoly” and is to the detriment, not the benefit, of carriers and especially of shippers. “We believe this latest development [which takes away regular carrier calls to Montecon] goes against the Uruguayan Port Law and we are currently in a legal process regarding this issue,” a Montecon manager told Port Strategy. “I am not a lawyer but a monopoly situation is not allowed under Uruguay’s constitution. Over the next few months, the Transport Minister [Luis Alberto Heber] will address Parliament with, we hope, some alternative suggestions.” In the meantime, the world of commerce keeps moving and Uruguay is a centralised country with the vast majority of its foreign trade passing through Montevideo, and 90 per cent of the port’s cargoes containerised. It is also a transshipment hub for Paraguay and Argentina, plus occasionally southern Brazil. More infrastructure and equipment are now needed to handle the expected future rises in economic activity post

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

SEPTEMBER 2021 | 41

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URUGUAY: MONTEVIDEO TERMINAL DEVELOPMENT COVID-19 and also the imminent return of Paraguayan transshipment cargoes: which will total around 100,000 to 120,000TEU extra per annum. During the first six months of this year provisional figures show that Montevideo handled around 431,600TEU, up a hefty 31 per cent compared with the same period of 2020, with the percentage share of the market roughly the same as last year, but all those interviewed for this article believe that percentage share is about to shift radically back towards TCP, unless politicians do a volte face. Hontou explained to Port Strategy that although the new concession runs now until 2081 – and is therefore believed to be one of the longest running in the world today - such are the needs for infrastructure in Montevideo today, that Katoen Natie will front-load nearly all the investments into the next few years. “We are hoping to start breaking the first rocks almost immediately,” Hontou told Port Strategy whilst referring to a new quay, of 740 metres, that will be built as part of the US$455million investment commitments, and take total quay length up to 1380 metres, allowing for four vessels to be operated simultaneously. “We are going to make all the infrastructure investments over the next few years not spread them out long term.” At the end of the investment TCP will be deploying between 12 and 15 Super Post Panamax Ship to Shore Gantry Cranes (SSGCs), up from the six they operate today (four super post Panamax and two post Panamax). “We will need to make these investments so we can handle the forecast increases over the coming years,” he explains. “Already the Paraguayan transshipment cargoes we lost to Buenos Aires are starting to come back and we will slowly be taking in more of Montecon’s volumes as the new agreement with the government takes hold.”

‘‘

TCP will now have priority for all box vessel calls

Montecon still has four services remaining - CMA CGM’s ESA service to the Far East, two MSC and Hapag Llloyd joint services to the Med and to North Eruope plus the Hapag Lloyd dominated GS 1 to the US Gulf – but one of those is expected to transfer to TCP in early October. Hontou adds that soon after Montecon’s volumes superseded those of TCP, the overall throughput for Montevideo (which peaked in 2017 with 940,000TEU) started to plummet as more than 100,000TEU per annum of Paraguayan transshipment cargo started to shift across the River Plate to the terminals of Buenos Aires. The 2020 figure was some 22.7 per cent behind that peak year of 2017 but many believe the 1m TEU barrier will be breached within three years, thereby underlining the urgent need for improved infrastructure. The 2017 record figure fell by 15 per cent in 2018, and by another six per cent in 2019, but it rose by two per cent during 2020 despite the pandemic dislocations, partly because of operational problems in Buenos Aires and weather and other delays in North Europe meant that carriers were oﬄoading some cargoes in Monty and skipping their BA calls, and sometimes calls in Rio Grande, Itajai and Paranagua in southern Brazil as well. Hontou says that a number of operational and congestion problems in BA and the Argentine maritime authorities fighting with the Paraguayan pilots has led to various carriers shifting their transshipment boxes back to Montevideo. He points out that Maersk/Hamburg Sud have already, since

The long road to dispute resolution: still The long running rivalry between TCP and Montecon spilled over into outright enmity in 2019 when TCP’s Belgian owners, Katoen Natie (KN), accused the Uruguayan government at the time of favouring Montecon which, they alleged, was illegal in terms of existing port legislation. This was ironic considering the Uruguayan government, via the ANP (National Port Authority) was a 20% shareholder in TCP. According to various sources in Montevideo KN was suing for more than US$1.5billion, claiming that the government – which changed in March 2020 when Luis Lacalle Pois became president - favoured Montecon and this allowed the public berth operator to turn a 30 per cent market share of movement into a 60 per cent one, despite TCP being a dedicated box terminal with six Ship to Shore Gantry Cranes (SSGCs) while its rival had only Mobile Harbour Cranes (MHCs). However, the legal action was quietly dropped in March of this year following the concession extension to 2081 – 50 extra years added to the previous 2031 expiry date - and the allied promise to invest heavily in the port. This prompted Montecon to cry “foul” and claim that the new government

8 Montecon’s quayside handling power is provided by specially adapted Liebherr LHM 800 mobiles – but what does the future hold for the company?

manoeuvre has created a monopoly situation in Montevideo. Montecon used to be owned by the influential Schandy family but is now majority owned (since 2018) by the Chilean Ultramar group. It published a lengthy letter in the influential El Pais and El Observador national newspapers making threats to “take actions to defend our right to work” in accordance with the “Law for the Defense of Free Competition, ratified by the [original] TCP Concession Law”. Julio Branda, Commercial Manager, Montecon, told Port Strategy that shippers and port unions and many of the carriers are supportive of the company’s position as they

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

do not want to see a monopoly develop. Indeed, Branda says the port unions have already carried out intermittent strike actions – both in the port and outside the government palace - against the government decision to favour TCP. “If this goes ahead we will not be able to carry on,” said Branda. “There are not enough other types of cargoes to be viable.” Montecon has been operating out of Montevideo’s public berths for more than 20 years and after Ultramar increased its shareholding began to be more adventurous in its strategies and investment plans. In 2018 it won a bid for a 10-year concession to operate a 9000 sq m dry and reefer warehouse, with 700 reefer plugs to bolster beef, chicken and fruit shipments. Montecon says that it currently employs 700 workers, and during its 20 years of operations has invested $90m and paid ANP more than $100m in fees. It has also been working very closely with Liebherr of Germany which has been designing specially adapted MHCs for Montecon. The Liebherr LHM 800, costing US$6million at the time, debuted at Montecon in 2018. They now have three of these.

SEPTEMBER 2021 | 43

URUGUAY: MONTEVIDEO TERMINAL DEVELOPMENT early June, switched back to the Uruguayan port and Hapag Lloyd, CMA CGM and “even MSC, who are partners in Exolgan in BA” are all in the process of doing so. “Once one or two switch their transshipment it`s usually just a matter of time before they all do,” he forecasts. “It`s just more eﬃcient that way. I think by mid-September about 70% of Paraguayan transshipment will have re-crossed the River Plate back to Montevideo.” Given the new agreement between TCP and the government Hontou is also expecting more services to shift from Montecon back to TCP. Today TCP has three regular deep-sea calls and one seasonal one. One Montevideo based shipping agent who has worked closely with both Montecon and TCP over the past decade says that the current situation looks bad for Montecon, but he didn’t think it would be the end of them, despite their own gloomy prognostications. “Maybe they will still have one, maybe even two, services left by the middle of next year – I am not sure TCP can handle all the cargo that is coming Montevideo’s way over the next few years,” he told Port Strategy. “TCP is increasing its Paraguayan movement now and so will need more space. I think, and sincerely hope, Montecon will keep at least one regular deep-sea call and be taking the overflow cargo from TCP for a good few years yet to come.” Katoen Natie claims there will be no “monopoly” because the “competition” can come from BA and the southern Brazilian ports, not necessarily from within Montevideo. According to Katoen Natie, TCP will have a capacity in

excess of 2.5 million TEU once the $455m investment project is completed, more than double its present limit, and the aim is to increase today’s maximum draft of 11.5 metres at low tide (plus 0.9 metres at high tide) down to 14 metres by the end of the investment period; although that will also depend on further deepening of the Hidrovia waterway in the River Plate, which is partly down to Argentina.

8 Montecon is presently on the losing end of a dispute with its competitor TCP but is persisting with a legal challenge to recent rulings

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COLOMBIA: CARTAGENA SPECIAL REPORT

CARTAGENA SETS THE STANDARD Colombia may not have won that many medals at the recent Tokyo Olympics but its key port of Cartagena is certainly a winner in the transshipment business

8 Transshipment traﬃc handled in Cartagena has risen by over 50 per cent in the last 18 month period

Cartagena has been the second biggest for container movement in South America for more than a decade now and has actually gained traﬃc since the Covid-19 pandemic struck in March of last year. This is mainly on the back of very strong transshipment cargoes, which make up around 75 to 77% of all box movements through the Colombian port. According to Sociedad Portuaria Regional de Cartagena (SPRC), the private company that operates the two main terminals of Cartagena, the port handled 2,959,007TEU during 2020 which was a 4.4% increase over the 2,831,427TEU it registered in 2019. In terms of transshipment the increase was 6.7%, from 1.5million up to 1.6m, for full dry boxes and a massive 56.8% up for reefer boxes from 207,199TEU to 324,527TEU. Since 2015 transshipment reefer boxes have doubled through Cartagena, transshipped dry boxes have increased 50% and overall throughput has risen 33%. This year transshipment through the north Colombian port has also got oﬀ to a solid start with 993,502TEU handled during the first six months, up 8.66% compared with the 914,318TEU during the same period of 2020. Giovanni Benedetti, Vice Chairman, SPRC, told Port Strategy that, despite the horrors and logistical convulsions of COVID-19, 2020 and the first half of 2021 had been “very good for us in terms of cargo handled, especially transshipment” with boxes lingering in the terminal for “up to three days” and therefore bringing in hefty profits for the company, especially reefer transshipments that utilise the 3900 reefer plugs on tap; believed to be the largest number in any South American port. About 50% of the reefer volumes are green bananas, mostly from Ecuador (Guayaquil) and also dominant are avocados, pineapples and asparagus from Peru (Paita). “Total movement for first six months has been an impressive 1.57mTEU and so we are forecasting 1.85m TEU of full containers in transshipment and 3.4mTEU for all cargoes, including empties,” states the SPRC executive, adding that Cartagena’s current capacity, of between 4.8m and 5mTEU, has also been a pull factor. “In the past we have always been betting on having the extra capacity available, so that when

carriers face congestion problems elsewhere they will think `we can always go to Cartagena`. We are always ready to take on extra volumes and that’s what we’ve been doing. Even with last year’s increases we are still only at 65% capacity, but we will look to bring in more equipment over the next year or so.” TRAFFIC MAGNET Part of Cartagena’s success during the past year has been due to the 45 days of strike action, starting in March, which halted operations at Buenaventura, its main rival for cargoes to the capital city Bogota. This led to some domestic cargoes, around 50,000TEU, being diverted to the north Colombian port and also significant transshipment cargoes have now re-located to Cartagena, after three major West Coast South America (WCSA) services to the Mediterranean were scrapped between late 2019 and mid-2020. They have been replaced by transshipment via Cartagena and the various Panamanian box facilities. Benedetti says Hapag Lloyd accounts for around 44% of its transshipment traffic while Maersk and CMA CGM account for 20% each, and ONE 8%. A number of developments surrounding and following on from the COVID-19 outbreak and the re-configuring of liner services by the world’s leading carriers have seen both Panama and Cartagena pick up significant transshipment volumes from the northern Caribbean transhipment ports, such as Kingston, Jamaica and Caucedo in the Dominican Republic. That is certainly the view of Ricardo, Sanchez, the Senior Economic Affairs Officer of the International Trade and Integration Division of ECLAC (Economic commission for Latin America and the Caribbean). “There has been a shift from the north Caribbean [Kingston, Caucedo, Freeport, etc] to the south Caribbean, with Panama and Cartagena benefitting tremendously,” he explains to Port Strategy while attending a shipping conference in Puerto Rico. “This is part of the notorious practise of re-hubbing that we see from carriers who have so many hub ports to choose from in the Caribbean.”

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

SEPTEMBER 2021 | 47

EAST COAST CANADA: CONTAINER HANDLING

NO CHANGING OF THE GUARD In eastern Canada there are new container terminal plans gaining approval and others now unlikely to occur. AJ Keyes looks at what is expected to change in the region and what it means

8 A green light for Contrecoeur will further strengthen Montreal’s key role in the East Canada region

East Canada is an established and mature port region, serving local markets and competing for the large discretionary US Midwest hinterlands. The competitive landscape is becoming much clearer as a combination of winners and losers starts to emerge. The North Atlantic, eastern region of Canada oﬀers two existing ports for US Midwest and discretionary cargo – Montreal and Halifax. Montreal is positioned on the St Lawrence River and has water depth limitations as well as a longer sailing time from/ to the open sea but is closer to major Canadian consuming hinterlands and key US markets. Shipping lines continue to call on a dedicated basis, almost exclusively on a full discharge/load basis. Halifax, by comparison, oﬀers very deep water and good terminal infrastructure. Access to Ceres Cove is limited due to bridge airdraft constraints, but the Halterm facility, now part of PSA International, can receive ships of 16,000TEU. DP World has also entered the region through its operation at Saint John (NB), plus there are long-standing projects, such as Novaport and Melford that have known plans to target container volumes, and the more recent Laurentia project in Quebec. With the exception of Montreal, immediate cargo volumes are limited and this has focused attention on accessing the central Canada and US Midwest markets to produce the volumes required to justify terminal investment. Some successes have been noted, but the concept of regional transshipment hubs has proved financially more problematic. DOMINANT MONTREAL In terms of container volumes handled in eastern Canada, Montreal is the dominant facility. As Figure 1 shows, the port’s 2020 volume surpassed 1.6 million TEU, with Halifax handling

48 | SEPTEMBER 2021

just over 500,000TEU. The other ports, which include Saint John (NF), St. John’s (NL), Sept Iles (QA) and Quebec City (QC), collectively generate around 250,000TEU per annum. There was a negative impact on total regional port volumes in 2020 due to the COVID-19 pandemic, thus if the 2019 activity is considered as more typical, then the eastern Canada container port market totals around 2.5 million TEU per annum. To put recent market growth into context, the same ports collectively generated just under 2.0 million TEU in 2011, reflecting growth of 3.2 per cent per annum since. Despite the recent uncertainty caused by the COVID-19 pandemic and the impact of seeing cargo diverted away from Montreal during recent strike actions, the region’s largest volume container port is holding up well in 2021. That said, one executive at the port authority felt that Montreal is currently “a step behind its USEC rivals in growth and recovery”. For H1 2021, the port handled just under 839,500TEU, which although down on the H1 2019 total of 859,400TEU, is an improvement on the H1 2020, COVID-19-impacted figure of 821,700TEU. CONTRECOEUR DEVELOPMENT The Montreal Port Authority (MPA) also has a clear aim to meet future local and transit demand through development of the new C$750 million Contrecoeur terminal. The site is approximately 40km downstream from the existing terminals in the city and the project gained the necessary Impact Assessment Agency of Canada (IAAC) approvals in March 2021. Current schedules indicate the first phase of the project, delivering 1.15 million TEU of additional capacity, will come on-stream during 2023-2024. Further expansion could ultimately see the facility expanding to 3.5 million TEU over the longer-term.

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

EAST COAST CANADA: CONTAINER HANDLING

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Contrecœur…a national and international procurement process to identify an operator

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At the start of July, MPA confirmed it will be launching a Design-Build-Finance-Operate-Maintain (DBFOM) procurement process that will be open to national and international industry players. “Factoring in our timeline, we are proceeding with the development and implementation of the Contrecœur container terminal through this national and international procurement process, which will make it possible for us to identify which consortium oﬀers the best terms and conditions to operate our important project,” explains Martin Imbleau, President and CEO, MPA. One of the issues facing Montreal is the limited water depth available on the St Lawrence. With larger vessels calling at New York/New Jersey (NY/NJ) and other USEC ports in recent years, increased interest has focused on the deepening of access to Montreal. An improvement of just 1.0-1.5m will restore the relative position of the port from a shipping cost perspective and allow continued capitalisation on the major inland cost advantages enjoyed by the port. CONSISTENT HALIFAX PSA International completed the acquisition of Halterm Container Terminal in the Port of Halifax, Canada, from Macquarie Infrastructure Partners in Summer 2019. The terminal has been undergoing berth expansion, including the delivery of a fifth super post-Panamax quay crane, which means that it can handle two mega container vessels simultaneously. The port also has highway connections for Atlantic Canada’s high-value exports. Together with CN, it oﬀers double-stack and reefer service coast to coast as well as a continuous line from Halifax to Chicago, Detroit and Indianapolis connecting the US Midwest. Yet despite it currently being the only container terminal in

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Eastern Canada that can serve mega container vessels, the facility still faces the same challenges, irrespective of the terminal operator. In May 2021 the terminal endorsed its credentials to handle the largest ships on the eastern seaboard when the 16,000TEU mv CMA CGM Marco Polo kicked oﬀ its tour of the east coast of North America. This is larger than existing ships in regular service on All-Water via Suez Canal services and Halterm will hope that existing schedules are further upgraded moving forward. The limited local market means that the port will always be reliant on having to secure discretionary cargo for the US Midwest and that remains a major reason for volumes handled staying at consistent, if unspectacular, levels. Developing transshipment activity could make some sense to help boost volumes, but to date it has not occurred.

8 Figure 1: Development of Container Volumes, East Canada Ports in ‘000 TEU, 2015-2020

SAINT JOHN (NB) EXPANSION Saint John (NB) has also recently gained a global terminal operator, with DP World now in control of the port’s multipurpose activities. It is already expanding, with confirmed plans involving

No Prince Rupert of the East It had heavyweight support, including Hutchison Ports and Canadian National Railway (CN), and an identified strategy to replicate the success of Prince Rupert on the west coast of Canada, but the planned C$775 million ($624 million) Laurentia project now looks dead in the water. The Impact Assessment Agency of Canada (IAAC) has confirmed that the proposed 700,000TEU per annum development would cause significant damage to fish and their habitat, together with harming both air quality and human health, and erode the resources and land of the local indigenous people. “NOT MOVING FORWARD” IAAC did add that the Laurentia developer could resubmit its proposal, but this is not going to happen. Mario Girard, CEO, Port of Quebec confirmed that the project, “will not move forward.”

The Port of Quebec Container Terminal Project development team, most recently led by Don Krusel, former President and CEO of the Prince Rupert Port Authority, said that the need for Laurentia could be tracked back to the Port Authority of New York/New Jersey having to spend billions of dollars on dredging and raising the Bayonne Bridge to accommodate ever-increasing container ship sizes. The business case for Laurentia was reportedly based on 90 per cent of all containers moving directly from larger ships onto rail for delivery in more distant (and discretionary) markets in Ontario (Canada) and the US Midwest – thereby replicating the success of Prince Rupert on Canada’s west coast. “UNFORTUNATE” Unsurprisingly, Quebec Port Authority (QPA) announced its disappointment at the

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

decision from IAAC, stating it was “unfortunate” that its experts in the areas of concern were not able to meet IAAC concerns. Indeed, QPA still maintains that the Laurentia project fundamentally remains “a very good project, both for the economy and the environment”. The Laurentia project appeared to tick many boxes. Global operator, Hutchison Ports, signed up and essential intermodal rail service connectivity was guaranteed by CN, plus it had the asset of deep water and modern infrastructure available for bigger container ships. However, the project did not get to the point where its partners got to use their expertise in operations and rail services. The existence of other projects, most notably Contrecoeur in Montreal having gained environmental approval means that there will be not be a “Prince Rupert of the East” – at least not in Quebec City.

SEPTEMBER 2021 | 49

EAST COAST CANADA: CONTAINER HANDLING

‘‘

The competitive landscape is becoming much clearer as a combination of winners and losers starts to emerge an extension to the existing wharf, dredging the main channel to accommodate new Panamax vessels (306m LOA) and updating the container and intermodal yard. This will see annual container capacity increased to 330,000TEU per annum. A distant location and small local population to generate cargo remains the port’s challenge, so it is also considering development of off-site logistics zones to help generate more container traffic. Yet at least Halifax and Saint John (NB) are operating there are other, longstanding projects involving new port infrastructure in the region where no traction is occurring. OTHER OPTIONS? Sydney Novaporte is a planned new, largescale container terminal on Canada’s Atlantic Coast, located in Nova Scotia. The port’s developers have long claimed that its location enables a first North American port of call on the Great Circle Route from Europe and the Suez Canal. Also, being located close to the mouth of the St. Lawrence River, it offers two days sailing advantage over NY/NJ and a three-day advantage over Norfolk, Virginia. However, there is no anchor shipping line client and the project is yet to commence. While it has some strengths

conceptually, a lack of progress to date must question the validity of the proposal. Melford Atlantic Gateway Container Terminal and Logistics Park is located within Melford Industrial Reserve also in Nova Scotia, East Canada. The terminal claims to be the closest facility to Europe and the All-Water routing from Asia via the Suez Canal. While offering a good marine location, the project is another long-standing potential project that offers deep water but has gained little traction. SSA Marine has previously confirmed an interest as the terminal operator, but no shipping line has joined the venture as an anchor client to provide traffic. Until this occurs, it is difficult to see how the port will generate througput to warrant the scale of infrastructure planned. OLD FAVOURITES REMAIN Montreal lacks the deep water and ability to serve the larger ships that can call at Halifax, although it recently handled the largest container vessel to use the St. Lawrence River, when the 6730TEU, mv MSC Melissa, called to the Viau Terminal. The port has an excellent geographic location with a large local market to serve. It also has a green light for new terminal expansion and is over-coming hurdles other projects have fallen at. Likewise, Halterm and Halifax will continue to serve its small location population and target discretionary cargo from larger ships then sailing down the East Coast. The failure of the proposed Quebec deepwater terminal (see panel report) further confirms that there will be no changing of the guard occurring in East Canada.

YOUR INTERMODAL PORT IN THE MEDITERRANEAN

50 | SEPTEMBER 2021

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

USA: MID-WEST NEW ROUTING OPTION

NEW OPTION FOR HOLY GRAIL The ability to effectively serve the US Midwest can be regarded as something of a “Holy Grail” for the North American container port industry. So, any option that offers a beneficial, cost-effective or more environmentally-friendly option to reach this massive consuming and producing area is going to appeal to both cargo owners and shipping lines. Almost all major ports in Canada and the USA either compete to serve, or have a desire to access, the largescale consuming hinterlands that stretch from the Great Lakes, down the Ohio Valley. According to the US Census Bureau this is a largescale area covering 12 different states, as shown in Figure 1. The traditional approach for ports throughout North America is to utilise intermodal rail to cover the significant distances involved, either from US/Canada West Coast ports or from the Atlantic. For Halifax and Montreal in East Canada this means a reliance on service provided primarily by Canadian National Railway (CN) and also Canadian Pacific Railroad (CPR). Is intermodal rail, however, the only option available? Potentially not. THE CLEVELAND ANGLE Serving the US Midwest via Cleveland, USA may not seem like an obvious solution, but with the distances for existing routes such as New York/New Jersey, Virginia and Halifax too far for trucking and heavily reliant on intermodal rail only, perhaps some shippers and beneficial cargo owners will welcome an alternative option? Cleveland is located along the southern shore of Lake Erie, across the U.S. maritime border with Canada “Using the Cleveland feeder option enables cargo to benefit from our lack of congestion, ease of movement when cargo is discharged and moves out the gate, and our proximity to the major manufacturing base of the USA within an eight-hour drive of our port,” explains David S. Gutheil, Chief Commercial Officer, Port of Cleveland. His view is endorsed by Dean Davison, Technical Director, WSP UK Ltd. “A feeder service of 1200TEU linking Montreal to Cleveland offers shippers and cargo owners an environmentally-friendly alternative to intermodal rail or road to New York/New Jersey, Baltimore and Virginia. Analysis of the costs involved confirm that the Cleveland Feeder service

Source: US Census Bureau

The traditional option from East Canada ports to discretionary hinterlands is intermodal rail. However, another option now exists. AJ Keyes investigates

via Montreal compared to a US Northeast port, is the most cost-eﬀective outcome for key destinations including Cleveland, Columbus, Akron, Toledo, Indianapolis and Detroit.”

8 Figure 1: US States Defined as the Midwest Region

CHALLENGES? So, if the Cleveland option offers a cost-effective cargo routing to key areas and one that is more environmentallyfriendly, what challenges exist to this option becoming a more mainstream choice? The largest factor is shipping line and cargo owner inertia. Unless there is a good reason, or need to do so, cargo shippers and shipping lines will often not wish to change the status quo. There must also be sufficient volumes to make any logistics changes too. The routing is also usually closed for three months during winter, although innovative solutions to maintain weekly services can overcome this issue. Clearly, the Cleveland option does hold some merit, as Davison explains: “The facility is congestion free and by the time the containers arrive, via an environmentally-friendly waterway routing, the cargo is already much closer to the final markets. For some shipping lines and beneficial cargo owner partners, this could be an appealing combination.”

Canadian Domestic Options Growing Canadian shipping firm Desgagnés has launched a domestic container service between Montreal, Quebec, and Hamilton, Ontario. Desgagnés operates this service in partnership with the Hamilton Oshawa Port Authority (HOPA Ports) and the Hamilton Container Terminal. The new line is backed by cargo contracts from MSC. The service will be operated through the St Lawrence Seaway System,

using the 12,600 dwt, Desgagnés-controlled, general cargo vessel SEDNA DESGAGNES which is able to carry up to 665TEU. A first departure from Hamilton set sail on 11 June. Hamilton is based at the Western tip of Lake Ontario, sitting 600 km south west of Montreal. The port handles cargoes originating from/going to the Great Toronto and Hamilton (GTHA) area. The new service aims at tapping into this market, with

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

cargoes transshipped in Montreal to/from long haul international liner services. The Desgagnés/HOPA/HCT service is the second regular container line initiative launched in the Canadian domestic trade in recent months. In March 2021, another Canadian operator, Doornkamp Lines announced the start of a regular container service connecting Halifax (Nova Scotia) to Picton (Ontario).

SEPTEMBER 2021 | 51

PAPER REEL HANDLING

REEL CHALLENGES & ANSWERS John Bensalhia reviews FLT clamp design for paper reel handling, the challenges and the latest solutions

8 The Port of Tilbury has collaborated on clamp design to meet its specific needs

Due to their composition and size, paper rolls, out of the wide range of paper products produced, need particularly careful handling. In order to avoid potential damage and to maximise safety during the handling and transport by a forklift truck (FLT), port operators need to secure the rolls in place with purpose-built FLT clamp attachments. There are a range of factors involved in choosing the right kind of clamp. Hyster explains that typical attachments used for paper handling include rotating paper roll clamps and non-rotating single and double tower clamps, as well as several other variations depending on a particular application’s needs. A key user elaborates: “One of the main considerations when choosing clamps is flexibility in handling products in respect to diameter and weight,” says John Russell, Asset Manager, UK Paper Hub (Port of Tilbury). “We have clamps varying from 1300mm diameter to 2300mm diameter which can lift up to 7.5 tons. We have single and double tower clamps which enable us to safely handle multiple reels at once.” Cascade and Bolzoni Auramo are, historically, the main brands utilised by the majority of ports and terminals. Both continue to expand and refine their respective product ranges. DAMAGE AND SAFETY A key design consideration is making sure that the clamping force is right. Each case is diﬀerent, meaning that a one-sizefits-all arrangement won’t work for many reasons. If the force is too great, this can cause damage to the paper reel, which

runs the risk of deforming. If the force is too slight, the reel is likely to slide or drop out of the clamp and suﬀer costly damage. The reel is also at risk of damage if clamps are placed in weaker locations such as the reel edge. A loosefitting clamp also poses a serious risk to health and safety: “Other than damage, Health & Safety is paramount when choosing the correct equipment,” says John Russell. “Dropping a reel could cause serious injury and could even be fatal.” Clamp design can play a part in reducing risk when working in closed or cramped working spaces. One approach is reducing the size of the clamp arm. Slimline arm designs, as developed by Bolzoni Auramo for example, not only maximise safety but also facilitate easier and more accessible operations in confined spaces. GETTING THE PRESSURE RIGHT In order to alleviate clamp related pressure level problems, innovative solutions in clamp design have been developed. The UK Paper Hub (Port of Tilbury), for example, has worked alongside Cascade and Briggs Equipment on a special clamp project. “We worked collaboratively with Cascade and Briggs equipment to produce a clamp which automatically applies the correct pressure and maintains that pressure even when

‘‘

Manufacturers are increasingly coming up with custom-made solutions

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

SEPTEMBER 2021 | 53

PAPER REEL HANDLING

‘‘

We worked collaboratively… to produce a clamp which automatically applies the correct pressure travelling which causes dynamic movement,” says Russell. “We have twin bore rams that can alter the initial threshold pressure to take into account of heavy but smaller diameter reels which require specific pressures.” This clamping system provides two levels of clamp force. The operator doesn’t need to manually adjust the settings as the attachment is fully automated, providing accurate application of the required force. When the right force is applied, a light indicator informs the operator of this fact, as well as when the clamping arms are fully open. Cascade also provides the options of using Hydraulic or Adaptive Force Control as a means of ensuring the right pressure levels for paper handling. While Hydraulic Force Control (HFC) automatically controls clamp force in relation to the load weight, Adaptive Force Control (AFC) utilises a pre-programmed ratio based on both the type and weight of the paper as a means of setting an optimal clamp force. Also available is Cascade’s HFC+, a combination of the HFC with a paper roll clamp dual cylinder system. This combined innovation allows the same paper roll clamp to handle multiple weight and diameter ranges of paper rolls. The dual stage cylinder system has two alternative stages: Primary and Secondary. Primary is geared towards handling heavier, larger diameter rolls, while Secondary is used for lighter, smaller diameter rolls. Bolzoni Auramo’s paper roll clamp range includes a dedicated clamp for heavy-duty forklift truck handling of up to eight paper rolls at a time. “Even if they have big capacities, these clamps offer excellent visibility and have the same damage reduction features as our smaller series of paper roll clamps,” says Lars Petersson, Bolzoni Group Paper Products Specialist, Bolzoni Group and Auramo OY. He elaborates, “With the new adjustable height option, the driver can easily adjust the height of the clamp according to the rolls being handled.” In order to reduce the risk of paper damage, the adjustable height option is part of the hydraulic adjustable top section. This can be fitted as optional on all tower clamps. “This is recommended both for single and the double handling of rolls.” “With this option, the driver can easily adjust the height of the clamp to fit the rolls being handled. This gives a secure grip on all rolls together with reduced risk to damage on the paper roll edges.” THE RIGHT TOUCH A further design feature to prevent damage is the contact pad. With tissue paper handling, for example, extra care is needed in order to prevent damage to this particularly sensitive material. Bolzoni Auramo’s tissue roll clamps include specially designed pads in a choice of single, triple or convex radius and a range of friction surface choices. Each port-based paper handling task will require a different kind of attachment. Single tower clamps, for example, afford a high degree of clamp flexibility in that they can be used for a greater variety of roll configurations. Hyster says that there are also a choice of pre-set pressure settings, which means that operators can swiftly make the right choice for a particular reel type. Furthermore, slim profile split arms are strongly recommended for tight stacking, damage-free handling. With a contact pad on each paper roll, this gives a secure, safe grip.

54 | SEPTEMBER 2021

Kaup’s split long arm clamp is designed to handle two lots of paper rolls at the same time. The Kaup clamp can manage rolls of the same and diﬀerent sizes, securely holding them in place. Lars Petersson adds that the use of split arm clamps is a means of providing sensitive handling for the roll edges. “We all know,” he says, “that the paper roll’s most sensitive and weak part is its edges, and that to clamp roll edges is not recommended at all. That’s one of the reasons why,” he explains, “we always recommend split arm clamps. The optimum would be to have for each paper roll a dedicated contact pad, in order to evenly distribute the correct clamping force.” If an operator wants to achieve the work in a faster time, a double tower clamp is advised by Hyster. In particular, Hyster cites the Bolzoni Auramo double tower clamp that is capable of managing four to eight paper rolls with a capacity of up to 12,000 kg. Rotating paper clamps are another common choice. Hyster says that each clamp should have a fast, accurate rotation system with precise vertical stops and end cushioning.

8 Hyster points out FLT design features such as ‘return to set tilt’ which play their part in reducing reel damage

FUNDAMENTALS FOR EFFICIENCY As well as selecting the right clamp, ports must also choose the right kind of FLT that will accomplish the task in hand. “There are many clamp manufacturers with different and new technologies, all designed for specific applications, but quite often a FLT will be needed for multiple different uses in a port environment,” says Josie Fox, Industry Manager, Hyster. “Our lift trucks offer the benefits of quick disconnect hydraulic couplings, to easily switch between clamps, forks and other attachments. Our FLTs also have features such as ‘return to set tilt’ to ensure, for instance, that a paper reel can be put down flat, reducing edge damage.” Ongoing advances in paper roll clamp design are progressively contributing to more efficient handling processes. As well as conventional clamps, manufacturers are increasingly coming up with custom-made solutions, tailored to each customer’s needs. Extra help is also available with paper clamp service and advice. “We have the most suitable attachment for any sort of logistic and material handling need,” says Lars Petersson. “But that is not all! We can offer our competence on everything involving paper roll clamps in the logistic chain. Knowledge together with the right products is the key to achieve efficient and damage free handling,” he underlines.

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

PRODUCTS & SERVICES DIRECTORY

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

Overland Conveyor Pipe Conveyor Stacker & Reclaimer Shiploader

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

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

Specialist for pneumatic ship unloaders and mechanical ship loader. NEUERO follows the MADE IN GERMANY quality tradition. Now with more than100 years of tradition in the manufacture of reliable and high-quality conveyor systems worldwide. Email: neuero@neuero.de Tel: +49 5422 9 50 30 neuero.de/en/

As one of the leading manufacturers of quick connector systems,Stäubli covers connection needs for all types of ﬂuids, gases and electrical power. Tel: +33 4 50 65 61 97 connectors.sales@staubli.com www.staubli.com/en-de/ connectors/

Staubli_Directory Mar 2021.indd 1

Taylor Machine Works, Inc. Taylor Machine Works designs, engineers, and manufactures more than 100 models of industrial lift equipment with lift capacities from ,000-lbs. to 125,000-lbs. YOU CAN DEPEND ON BIG RED! 3690 N Church Avenue Louisville, MS 39339 USA +1 662 773 3421 CONTACT?SALES TAYLORBIGRED COM www.taylorbigred.com

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

E LECTRIFICATION SOLUTIONS

14/07/2020 10:56

NEUERO Industrietechnik GmbH

26/05/2021 12:20

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

Faartoftvej 22 7700 Thisted, Denmark Tel: 0045 96 17 90 00 cimbria.holding@agcocorp.com www.cimbria.com

Cimbria Directory.indd 1

C ONNECTION SOLUTIONS

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

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

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

#WeHaveTonnesToTellYouAbout

C ARGO HANDLING EQUIPMENT

Beumer Directory Jan 2021.indd 1

7EB DELLNERDAMPERS SE

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

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

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

G-SERIES

Dellner Dampers is an innovative Swedish company that supplies solutions to mitigate vibrations and absorb kinetic energy. Standard and customised buffers and dampers for port side applications such as cranes, spreaders and more. All designed and produced in Sweden. Tel: +46-(0)157-45 43 40 Email: info@dellnerdampers.se

D REDGING

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

LASE offers innovative and productive solutions for ports by combining state-of-the-art laser scanner devices and sophisticated software applications. We are specialised in the fully automated handling of containers, cranes or trucks. Rudolf-Diesel-Str 111 D-46485 Wesel, Germany Tel: +49 (0) 281 - 9 59 90 - 0 info@lase.de www.lase.de

C OMPONENTS

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

LASE Industrielle Lasertechnik GmbH

C RANE COMPONENTS

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

C ARGO HANDLING SYSTEMS

For more than a century, Bedeschi is providing effective and reliable solutions in a wide variety of industries (bulk handling, marine logistics and mining), capitalizing on synergies and cross competences. Via Praimbole 38, 35010 Limena (PD) – Italy Tel: : +39 049 7663100 Fax: +39 049 8848006 Email: sales@bedeschi.com Web: www.bedeschi.com

B ULK HANDLING

Bedeschi S.p.A

25/02/2021 15:49

VAHLE PORT TECHNOLOGY VAHLE is the leading specialist for mobile power and data transmission VAHLE provides the solutions to reduce the carbon footprint while increasing the productivity. RTGC electrification including positioning and data transmission making RTGC ready for Automation. Westicker Str. 52, 59174 Kamen, Germany

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

SEPTEMBER 2021 | 55

PRODUCTS & SERVICES DIRECTORY

20OCT Piraeus 22 2021 Greece

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.

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

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

I T PORT AUTOMATION

H ANDLING EQUIPMENT

G RABS

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

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

MRS Greifer GmbH Grabs of MRS Greifer are in use all over the world. They are working reliably and extremely solid. All our grabs will be made customized. Besides the production of rope operated mechanical grabs, motor grabs and hydraulic grabs we supply an excellent after sales service. Talweg 15-17, Helmstadt-Bargen 74921, Germany Tel: +49 (0)7263 - 91 29 0 Fax: +49 (0)7263 - 91 29 12 info@mrs-greifer.de www.mrs-greifer.de

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

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

+44 1329 825335 www.portstrategy.com

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

S HIP UPLOADERS

20/01/2021 10:50

Künz GmbH

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

Contact Tim Hills or Hannah Bolland

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

RuggON_Directory_40x58.indd 1

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

19/05/2021 14:16

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

To advertise in the

CAMCO Technologies NV

P OWER TRANSMISSION

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

01/03/2021 14:40

Visual- and Micro Location- assisted process automation solutions for container, ro-ro and rail terminals worldwide. Accurate crane, gate & rail OCR systems and Gate Operating System software helping terminals accelerate terminal and gate activity. Technologielaan 13 Leuven, Belgium +32-16-38-9272 +32-16-38 9274 info@camco.be www.camco.be

Camco ID June 2021.indd 1

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

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

Fogmaker Directory.indd 1

MARINE FENDERS

GREENPORT Cruise Congress

I NSURANCE

F IRE SUPPRESSION SYSTEMS

Piraeus2021

Visy systems reduce VISY Oy expenses, optimize safety & security, and VISY takes pride solving via increase throughputin capacity operational problems,Our specialising process automation. singlein gate automation and system access platform gate operating control solutions in ports and and OCR solutions manage all terminals. Their solutions cargo, assets & personnel streamline processes resulting movements via quay, rail or road in saving money and to keep operations moving. increasing productivity.

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

Bruks Siwertell is a market-leading supplier of dry bulk handling and wood processing systems. With thousands of installations worldwide, our machines handle your raw materials from forests, ﬁelds, quarries and mines, maintaining critical supply lines for manufacturers, mills, power plants and ports. www.bruks-siwertell.com sales@siwertell.com service@siwertell.com

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

56 | SEPTEMBER 2021

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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

Hammar Maskin AB is developing, manufacturing and marketing Sideloaders, also known as Sidelifters, Swinglifters or Self loading trailers, under the brand name HAMMAR™. Buagärde 36, Olsfors 517 95 Sweden Tel: +46-33 29 00 00 Fax: +46-33 29 00 01 info@hammar.eu www.hammar.eu

T ERMINAL OPERATIONS SYSTEMS

S IDELIFTER/SIDELOADER

Hammar Maskin AB

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

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

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

.R TVMRX WMRGI 5SVX XVEXIK] QEKE^MRI TVSZMHIW OI] MRWMKLXW MRXS XLI MWWYIW ERH HIZIPSTQIRXW EǺIGXMRK XLI TSVX STIVEXMSRW and port maintenance industries.

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POSTSCRIPT DELUSIONS OF GRANDEUR?

‘‘

…the world is alive to fake news nowadays

58 | SEPTEMBER 2021

Political statements made in Barbados suggest a main Caribbean transshipment role for Barbados but market realities suggest otherwise. Local news outlets in Barbados are reporting that Kirk Humphrey, Minister of Maritime Affairs and the Blue Economy, has stated the intention to position Barbados as a Caribbean transshipment hub. In the local Nation News paper Humphrey is quoted as saying: “To counter the negative impacts of COVID-19, ports around the world are moving towards new dynamic approaches to development and efficiency. They are building specialised facilities, developing multi-purpose terminals and focusing on becoming large-scale hubs,” he said. This follows on from a report earlier this year in BN Americas, after an interview with Humphrey, which reported new infrastructure plans for the port of Bridgetown including cruise facilities, an expansion of bulk handling capacity, developing shore power, establishing a boat repair facility and expansion of the port’s Shallow Draft Marina. At this time Humphrey also pointed out that Barbados will open new diplomatic offices in Kenya and Ghana which will allow for the sharing of information and best practices, developing technology and systems and a range of other initiatives. This, in turn, he suggested will facilitate Barbados’s ambition to position itself as the Caribbean hub for Africa and South America. POLITICAL SPEAK A laudable ambition or political speak? It is the statement on fulfilling a role as a regional hub on what seems to be a large scale that is questionable. The port of Bridgetown may have the potential to undertake the role of a secondary transshipment hub, i.e. a quite limited role in conjunction with nearby ports, but to light-up the dream of fulfilling a major role in the Caribbean transshipment market appears to be a step that is closer to fiction than fact. Basic realities in this respect are: 5 Barbados is located in the south-eastern sector of the Caribbean Sea – it does not enjoy a central location and as such in transshipment terms only has a relevance in terms of undertaking a secondary transshipment role for locations such as nearby Saint Vincent and the Grenadines. 5 The Caribbean region is very well served in terms of available transshipment capacity with this to a significant extent established by leading international terminal operators who have invested substantial resources into developing efficient service capacity. 5 In the southern CaribbeanTrinidad is a wellestablished location for secondary regional transshipment. Over two terminal facilities, Trinidad handles in excess of 600,000TEU with approximately 40 per cent of this accounting for transshipment traffic. It has ample spare capacity available.

8 There is potentially a relatively small role for Barbados in secondary transhipment in a limited geographical context but as a main Caribbean transshipment hub this is not realistic

5 Main existing northern Caribbean hubs such as Kingston, Jamaican and Caucedo, Dominican Republic, have recently seen significant volume depart for locations such as Cartagena, Colombia and Panama leaving ample spare capacity in the former locations. Highly competitive rates will no doubt be available to fill this capacity. 5 Transshipment generally offers much lower returns than import/export traffic coupled with the fact that it is a ‘terminal confined’ activity offering little in the way of wider positive economic impact. 5 Transshipment is not all loaded containers and where empties are concerned earnings become even lower. 5 It is difficult to predicate an expansion of terminal capacity based on transshipment earnings as in order to make an acceptable level of profit high volumes are required. It is essentially a high volume, low margin business. There also needs to be a good deal of confidence behind investing in new capacity for transshipment traffic as it is not an ‘anchored’ traffic, it is portable. In practical terms, it can be ‘here today, gone tomorrow’ should a shipowner find a better price elsewhere or be required to move as part of new consortia arrangements etc. 5 In a micro context, it is also known that the existing Bridgetown container terminal operation is not highly competitive at a cost level, indeed the opposite. It is a public sector operation with a very large workforce for the traffic volume involved and one that to a significant extent has not yet seen reforms that deliver workplace best practices in key areas REALITY CHECK The facts speak for themselves – transshipment is not a panacea but can be a very difficult business and especially in terms of making it pay. In years gone by the idea of transshipment used to be regularly wheeled out by politicians as a potentially exciting new area of business development – but those days are long gone. It appears a relevant and wise course of action for Kirk Humphrey to check his facts prior to ‘hanging his hat’ on the idea of container transshipment in Barbados. After all, the world is alive to ‘fake news’ nowadays.

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