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Priority Projects
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
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 fi nding 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 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
8 Hutchison Ports
is developing a new two million TEU capacity container terminal at Abu Qir, Egypt with total investment put at US$730m
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.
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.”
8 DP World has
completed the fi rst phase development of the port of Berbera, Somaliland providing a 500,000TEU container handling capacity
