Port Strategy January/February 2020

JANUARY/FEBRUARY 2020 VOL 1020 ISSUE 1 portstrategy.com

Al-Faw necessary? | Large-scale wind farm opportunities | Legal priorities | Pilot and Bridge consistency

WIND PLANS, BLOWING A GALE Douala doldrums

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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

MIKE MUNDY

A decade defined by maturity

As we move into the third decade of the 21st Century no shortage of challenges are visible

There will be more emphasis on unleashing the powers of the digital world.

We already see more recognition of the need for an eco-friendly approach to business and alongside it, building sustainability.

More automation is coming, more creative financing vehicles, an even larger role for the private sector in infrastructure development and maintenance. Concession models will widen their influence – more whole port and access waterway opportunities are on the horizon.

Increased emphasis on margins seems certain and particularly as the rate of trade growth slows. Global port container throughput growth is put at around the 3 per cent mark for 2019, dragged down from earlier higher estimates by a slowing global economy, the China-US trade war and growing political instability in key regions of the world.

As we move into the third decade of the 21st Century no shortage of challenges are visible.

On the one hand it is a decade that promises to witness a significant maturing of the trade picture promoting industry consolidation and, at long last, an end to the ‘bigger is better’ approach. There may even be increased recognition of the reality that niches can be good to occupy.

On the other hand, there promises to be an increasing need for professionalism in the ports and shipping sector – sadly, in some ways, with less room for entrepreneurial flair with it sacrificed on the altar of inching up efficiency step-by-step.

The decade from 2020 may well be defined as the decade when container activity in particular reached a defining point of maturity. This may also embrace a more human face – more Corporate Social Responsibility (CSR), greater development of the workforce skill base but also (out of necessity) less allegiance to the “jobs for life” principles, more contracts, greater outsourcing and a generally revitalised work culture dovetailing with the requirements of the times.

All in all, there is still a lot of truth in the saying: “The greatest adventure is what lies ahead.”

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

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CONTENTS

11

NEWS 27 Temporary calm for Ports of Auckland

Government of New Zealand has requested more information by May 2020 regarding the possible relocation of cargo activities at the port

11 ICTSI’s AGCT links maritime & rail

A new weekly vessel and intermodal service at Adriatic Gate Container Terminal will link Rijeka to Central European Countries and benefit from terminal expansion

13 Doublestack to finally arrive in Baltimore?

Baltimore has finally secured all necessary funding to allow doublestack access through the Howard Street Tunnel – if engineering issues can be resolved

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

Social Media links LinkedIn PortStrategy portstrategy YouTube

JANUARY-FEBRUARY 2020

15 16 FEATURES

20 A juicy carrot for polish wind – but no plain sailing

REGULARS 15 Level playing fields in the port sector

Intra state and intra region competition to attract investments is rife with subsidies and state aid. But is it fair?

16 Backing something positive as front-page news

As part of a special feature looking at off-shore wind in Europe, UK and US, a focus on Poland shows that landside port limitations are now driving change, regardless of technology

28 Is IMO 2020 shipping's achilles heel?

Once IMO 2020 quality issues are sorted, ships will look at price and logistics, so does it mean new bunker ports appearing in locations previously not considered?

31 Dead as a Dodo in Brazil?

The privatisation process in Brazil and the squeeze on independent operators could result in a lack of home-grown Brazilian terminal companies remaining

News coming from Washington D.C. about bigger picture infrastructure issues could actually be front page news, not in the gossip columns

17 Key environmental trends going into 2020 A seismic announcement confirms that climaterisk analysis is being put at the heart of future investment strategies – what does it mean?

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

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28

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NEWS REVIEW

TEMPORARY CALM IN PORTS OF AUCKLAND RELOCATION DEBATE New Zealand’s Cabinet has called for a further body of work to be completed before any decision is made about relocating the cargo activities of Ports of Auckland (PoAL).

The Governmental Cabinet has acknowledged the findings of the Upper North Island Working Group’s recent final report which concluded that, “PoAL freight operation in central Auckland is no longer economically or environmentally viable”.

However, the Cabinet has stopped short of endorsing the Working Group’s preferred option of relocating the business to Northport.

“The key issue for Cabinet to consider when it takes decisions on the Working Group’s recommendations is whether the potential gain to New Zealand from the port move is sufficient to justify the significant Crown seed investment and possible need for regulatory and legislative intervention,” stated a Cabinet paper.

The Cabinet has requested an update in May 2020 with a further work programme comprising analysis of key factors relating to the port’s cargo activities.

These include an assessment of logistics and supply chain

transportation activities, land use planning and wider economic benefits, legislative and regulatory considerations, funding and finance issues, governance and commercial matters and the best approach to addressing stakeholder engagement and communications.

As part of that work programme, officials will assess the Working Group’s recommended Northport scenario and other scenarios looked at by the Working Group.

Infrastructure Minister Shane Jones – whose party is a minor partner in the Coalition Government with strong interests in Northland – has attempted to make the issue personal. He recently labelled PoAL chief executive Tony Gibson a

8 Temporary calm for PoAL, but should cargo go to Northport?

“cowardly renegade” for his questioning of the viability of a Northport relocation.

However, Mr Gibson has maintained decorum, with his port instead releasing findings of its own independentlycommissioned report. This document determined closing PoAL would raise the cost of imports by between NZ$533 million and NZ$626 million a year among other negative economic and environmental impacts.

With a report due for delivery in May 2020 and then further time required to assess the key recommendations, no immediate decision looks like being made by the New Zealand Cabinet until the second half of 2020, at the earliest.

RECENT AAPA CONFERENCE TALKS OF CONNECTIVITY The recent American Association of Port Authorities (AAPA) Latin American Ports Conference, the 28th event and held in Miami, FL had a common theme – connectivity. Other areas addressed by the event included “digitalization,” of course, but also the extension of the “port” backwards into geographical hinterlands (and cooperation within regions), along with deep integration of port operations with supply chains.

A presentation by Singapore based Kris Kosmala, with Singapore based Click & Connect, offered excellent insight into the subject, emphasising the need to be fully digitalized, and connected to an entire system-

not just individual components (or one aspect of a port). “Do not build islands,” he told the audience, “Instead, look at building the entire archipelago.”

In his remarks, he referred to projects around the globe, including Singapore (where movements of multiple transport modes are coordinated- rerouting truck traffic to/from the highly automated port as necessary), or Algeciras, where arrival times and berthing are optimized.

Kosmala also put port digitalization into the context of Future 4.0, noting that “…the maritime industry is different but not that different…” from other industrial realms, and pointing out that “…every vessel call is

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

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custom-orchestrated” (in contrast to the more general notion of batch versus single piece job). He described multiple projects where “Digital Twins” of port systems, with a focus on Tanjong Pagar (in Singapore) allow planners to simulate operations with links to sensors providing real time data.

A different, but very reinforcing perspective came from Rene Van Der Plas, Director of the Port of Rotterdam, who described a series of projects bringing automation and integration to create the “Smart Port”, where logistics chains are connected. Rotterdam’s efforts include a Blockchain project along with cargo owner Samsung and trade financier ABN Amro.

BRIEFS Port Nelson invests A NZ$20 million redevelopment announced by Port Nelson will bring its 2400m2 Main Wharf North back into service after a three-year deterioration-enforced hiatus. The replacement of a 100-metre wharf section will improve the port’s resilience. as well as move main operations further away from residential neighbours. It will also enable the port to expand its business by attracting larger 260-metre to 270-metre cargo vessels and 300-metre cruise vessels.

LatAm Ready?

Ricardo Sanchez, Senior Economic Affairs Officer at the United Nations office dealing with Latin America and the Caribbean, explained at the 28th AAPA Conference that Latin American ports are only now beginning to prepare for larger ships entering their trade lanes. He said the ports now anticipate 12,500 TEU vessels but port capacity in the region was not keeping up ship capacities and that the “future looks difficult” because new vessel entrants are not carrying full loads.

Back in the game The US West Coast of Portland has secured a weekly container service from South Korea’s SM Lines. The connection between the port and China and South Korea is the first regular liner service using the port for almost five years when then operating Hanjin Shipping left the facility due to friction at the time between operator, ICTSI and the local workforce.

The first call was made on January 12, 2020 by the 4,330 TEU, SM Qingdao.

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NEWS REVIEW

BRIEFS Nacala concession The concession for the Port of Nacala has reverted to the state of Mozambique and will now be operated by the Ports and Railways authority. CDN, was awarded the 15-year port concession in January 2005, as well as a 30-year concession to operate the 912km rail link to Tete province. The former expired in January 2020.

It will continue to operate the railway, which hauls export coal extracted by the Brazilian company Vale to Nacala.

River ports

Argentina’s Ministry of Transport has given the go ahead for services to commence at three ports in Entre Ríos, Santa Fe and Chaco states.

ACA Port Vilelas will handle grain for dispatch by barge by the Argentine Cooperatives Association along the Paraná River, while on the Paraná Guazú river, at Villa Paranacito, Del Guazú SA has set up a barge port, consisting of three berths.

Renova port, on the Coronda River will have three berths.

Downturn Concessionaire DP World San Antonio is predicting a possible 20% reduction in traffic in 2020 compared to last year. This will be due to a decline in retail imports, fewer finished vehicles and a drop in other products handled. National strikes in October-November 2019 resulted in a projected 5% drop in traffic for 2019, with many lines forced to divert to rival Valparaiso.

In 2018, the company’s installations handled 7.3 million tonnes.

8 | JANUARY-FEBRUARY 2020

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WIDE-RANGING PLANS FOR KEY CENTRAL AMERICAN PORTS Costa Rica’s Institute of Pacific Ports (Incop) has put forward a long-term development plan, which includes investment of $251 million in the Port of Caldera. The plan, which was prepared by a range of different consultants, including Arcadis and Camacho and Mora, was commissioned because the port has been operating at more than its nominal capacity since 2016.

Rather than construct a new port, the plan instead suggests modernising existing installations, which would help it build upon recent investment. A new port was ruled out because of excessive costs and the need to charge much higher rates.

The upgrades have been divided into three phases, the first two of which will form part of a 30-year concession. In the initial phase, the existing quay will be extended and new one build opposite berths 1 – 3. Yard areas will be paved to allow better container stacking and an existing warehouse demolished.

Significantly, at the end of last year, ICTSI privately approached the Costa Rican government will a rival plan of its own. This would involve the construction of a new

berth that would prove Caldera with some temporary relief.

Initially, $180 million would be used to build the 220-metre berth within two years to the northwest of the existing box terminal. With a draft of 12.5 metres, it would be able to handle 220,000TEU annually, using two MHCs. In nearby Guatemala, national ports are to invest $277 million in various infrastructure projects, with the aim of improving their competitiveness in the Central American market.

Santo Tomás de Castilla (Empornac) plans to build two terminals - one for cruise ships

8 Caldera is working over its rated capacity, but a new port is deemed to be too cost excessive

and one for dry bulk. These will cost $150 million and be operational in 2022.

At the same time, APM Terminals Quetzal is to undertake a second round of investment costing $60 million, expanding quay and yard areas and acquiring new equipment. This work will be completed within two years. A third phase worth $58 million depends on market growth.

As for Puerto Barrios Rail Terminal, there are plans to invest $8 million in port infrastructure in the current year.

DSP DATA & NAVIS PARTNER IN EUROPE WITH OCTOPI Navis, part of Cargotec, has signed a partnership agreement with DSP Data and System Planning-Switzerland to facilitate increased awareness of Octopi by Navis in the European market. Octopi, the modern and lightweight cloud-based TOS recently acquired by Navis.

This new product was specifically developed for container and mixed cargo terminals with a throughput of 300,000 TEU per annum and is immediately targeting European facilities due to what it regards as the ability to offer “enterprise tools at an affordable subscription price.”

“We are delighted to partner with DSP in our efforts to introduce Octopi to the European market,” said Martin Bardi, VP of Global Sales, Octopi by Navis. “We believe

that our software presents a special opportunity for historically overlooked terminals across the continent to realise significant value at an affordable price.”

Octopi delivers a cost-effective and easy-to-use TOS solution with core planning and execution capabilities including EDI exchange, gate processing, general cargo capabilities, yard management, vessel planning and critical reporting and invoicing functions.

Additionally, the solution offers built-in business intelligence dashboards as well as recently expanded general cargo capabilities, although important factors required and beneficial to terminal operators.

“Navis is committed to maintaining its place at the

forefront of innovation in the shipping industry and cloudbased, subscription-based products such as Octopi are a crucial component of our strategy,” Chuck Schneider, Vice President & General Manager, Navis. “We believe that the European market, which has a long tradition of embracing new technologies and the opportunities they represent, is ready for a solution that empowers them to make smart, data-driven business decisions and reach previously elusive levels of productivity and efficiency.”

The OCTOPI TOS is currently in use at 13 sites in seven countries and has seen recent partnerships secured with Tropical Shipping, Worldwide Terminals Fernandina and Port International du Cap Haitien.

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

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NEWS REVIEW The Brazilian port of Imbituba recorded its best ever year in 2019. In November, the port had already exceeded the previous year’s total throughput of 5.2 million tonnes.

The growth can be attributed to three main factors, namely, buoyant grain traffic, strong container cabotage and new cargo flows. As a result, the full-year 2019 port handling total of 5.7 million tonnes was recorded, up 9% on 2018. Exports accounted for 47.4% of the total, with the import share being 37.8% and cabotage the remaining 14.8%. March 2019 was its best month, with 592,000 tonnes handled. Vessel movements were actually down 16%, although can be explained by the arrival of larger ships entering service.

The leading commodities handled were pet coke (19.4%), corn (17%), containers (14.7%) and soya beans (11.5%), with salt imports (9.5%), urea (8.4%), bituminous coal (4.8%), exports logs (3.2%) all performing well.

Malt and iron ore traffic additionally returned to the port.

The port authority, SCPar Porto de Imbituba, has subsequently issued a tender for a company to oversee a project to restore and structurally reinforce Quay 3, with bids being received during January 2020.

The contract, which must be implemented over four months, involves drawing up the framework project, including costings and technology to be used. Quay 3 was built 40 years ago and is 245m in length, with the renovation and reinforcement work expected to be completed by 2023.

Wan Hai adds call

Wan Hai has added a second call, Cai Mep, in Vietnam on its transpacific service jointly operated with Cosco and Pacific International Lines (PIL). The service, offered as the CP1/ SEA/AC5 string, means that Wan Hai is now proving two direct service links between Cai Mep and the US West Coast (calling at the Port of Long Beach), with Haiphong the other Vietnam port of call on the schedule.

Wan Hai provides just one of the seven ships used.

IMBITUBA SEES RECORD YEAR AS BRAZILIAN PORT EXPANSION PLANNED 8 A record year at Imbituba with investment in nine private terminals planned across the Province

At the same time, the Ministry of Infrastructure has allocated $184 million for nine private use port terminals across Imbituba province. One of these involves

APMT INAUGURATES NEW VADO OPERATION The new APM Terminals (APMT) Vado Gateway terminal has been officially inaugurated, with the company claiming that it will “set new standards” due to what APMT says is a “unique” facility due to an automated yard and truck appointment system.

The Vado Gateway terminal represents a €450 million investment, in which APMT has confirmed it is spending €180 million and retains a share in the project of 50.1%. A further €43 million is being generated through project financing and joint venture partners are Cosco Shipping Ports (with a 40% share)

and Qingdao Port International (taking the remaining 9.9%). APMT will retain management of the terminal for a 50-year period.

Perhaps unsurprisingly, two liner services from Maersk Line are already confirmed callers.

From February 2020, APM T’s fellow AP Moller Maersk company has confirmed that its ME2 service, which links the Mediterranean with the Mid-East and India and the MMX string, which is a transatlantic option between the Mediterranean and North America, will both utilise the new operation in Italy.

Vado Gateway is a semi-

automated terminal, which will help to increase the competitiveness of the Ligurian and Italian port infrastructure.

The facility has opened with an initial 450m quay, although from July 2020 the full 700m extension will be available so that two vessels can be berthed simultaneously. With a draft of 17.25m at quay level and a height of 4.5m above sea-level, APMT has confirmed that the terminal will be able to successfully serve Ultra Large Container Ships.

Evergreen improves

New publication

Arctic Shipping pledge

Evergreen has increased its intra-Asia port connectivity.

The company has established a new service linking Dalian and Pusan through a slot exchange agreement with X-Press Feeders. Dubbed the BHF2 service, the weekly sailing offers 1,400 TEU. The move followed another service, BH3, in which Evergreen is linking Tianjin and Pusan with a similar arrangement with the Ocean Network Express, with use of a 2,758 TEU vessel.

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

Port Strategy Jan-Feb 2020.indd 9

terminals for passengers and another for general cargo, while a third, situated along the Amazon will be used for handling ore, liquid bulk and general cargo.

This development of new terminals reflects growing traffic levels across Brazil. The National Waterways and Transport Agency (Antaq) has been studying 46 new terminal projects in the country, equivalent to additional investment of $2.5 billion.

Diogo Piloni, Antaq’s national secretary, says the government is increasing the pace of investment in the port sector. This is being done both to boost cargo handling capacity and reduce overall logistics costs. By increasing overall legal security for investors, he adds, more companies are now willing to invest in port projects.

Dynamar says the global perishables trade now totals 163 million tons, with seaborne transport of fresh produce up by 3% to 119 million tons, in its new Reefer Analysis – Market Structure-ConventionalContainers publication. It says concerns remain over high fuel costs for operators in 2020 and conventional reefer ships are losing out to containers.

Baltic Shipping/Cool Carriers is the biggest conventional operator with 34 ships.

BRIEFS Eight more major shippers have signed the Arctic Corporate Shipping Pledge launched by Ocean Conservancy and Nike in October 2019, including Ralph Lauren, Puma and K&N. Each agrees not to intentionally ship cargo through the Arctic. Major shipping lines are already onboard after the US National Ocean and Atmospheric Administration annual Artic report said the sea ice in the region is, on average, 50% of the thickness recorded 40 years ago.

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ing

NEWS REVIEW

NEW TENDER LAUNCHED FOR PORT OF LUANDA The Government of Angola has launched an International Public Tender for the concession and operation of the Port of Luanda Multipurpose Terminal.

Its main objective will be to promote the development and improvement of port efficiency through the involvement of private operators with proven experience in the sector.

The public tender is specifically being directed to companies or associations of domestic and foreign companies that have proven experience in the activity in question or that meet the requirements of the program, the specifications and the legislation in force. The deadline for submission of bids is 30 March 2020, according to the Contest Program.

For companies interested in participating in the process, there are a number of set requirements.

These include equity of no less than US$25 million equivalent, average annual turnover of the last three fiscal years not less than the equivalent of US$100 million and a net asset of not less than the equivalent of US$100 million.

Other specific terms state that competitor companies shall have, directly or through subsidiaries, a

Contecon add-on

participation of not less than 25% in at least 3 port terminal concession operations in the last 3 years, and in at least one of these operations have a participation of not less than 50%, with an average annual amount of movement during the last 3 years not less than 250,000 TEU. The Port of Luanda Multipurpose Terminal is a port with infrastructure dedicated to the simultaneous operation of general cargo and containers. It currently has a pier of 610m in length, offering a water depth alongside of 12.5m. The total facility has an area of 181,070 m2 and a claimed capacity for move

8 New tender launched in Luanda, with March 2020 submission

2.6 million tons per year.

Luanda is the main port of Angola and in overall terms it handles more than 70% of imports and exports for the country (if oil and crude is excluded). The Multipurpose Terminal is one of five facilities, with Unicargas and Soportos other multipurpose operations and Sogester being the dedicated container facility. A separate oil and gas terminal, Sonils, is also operating.

Collectively, these five facilities offer a total of 2,738m of berthing.

ICTSI’S AGCT LINKS MARITIME & RAIL Adriatic Gate Container Terminal (AGCT), the Croatian subsidiary of International Container Terminal Services, Inc. (ICTSI) at the Port of Rijeka, has welcomed the new Rijeka Land Sea Express, a weekly vessel and intermodal service linking Rijeka to Central European countries.

Led by COSCO Shipping and rail freight partner Ocean Rail Logistics, this service consists of the regular maritime Piraeus– Rijeka Express Service (PRS), exclusively connecting Rijeka and Piraeus, and with it aligned rail connections, namely block trains on the Rijeka–Budapest–Rijeka, and Rijeka–Belgrade–Rijeka routes. By interconnecting maritime and rail services using the Rijeka Land Sea Express, COSCO offers its clients a transit

time of 32 days from East China and 28 days from South China to Budapest, using Piraeus and Rijeka as ports.

Emmanuel Papagiannakis, Chief Executive Officer, AGCT, welcomed this latest development, expected to further improve Rijeka’s position as the Northern Adriatic Gateway for Central and Southeast Europe: “We would like to extend our gratitude to all the stakeholders involved for their continuous support for this project which has strongly positioned Rijeka port and traffic route as the south entrance for Far East to Central Europe trade.” The Land Sea express project will support the regular block trains operating between Hungary and Rijeka plus the intermodal

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

Port Strategy Jan-Feb 2020.indd 11

BRIEFS

services to and from Slovakia and the Czech Republic.

ICTSI recently confirmed plans to expand its Croatian subsidiary, including a two-phase dredging scheme of 130 meters of quay over its Berths 1 and 2. When completed, AGCT will be able to berth vessels of up to 20,000 twenty-foot equivalent units (TEU) capacity, with a LOA of up to 400 meters and beam of 59 meters.

Work is also being advanced on upgrading AGCT’s on-dock rail terminal to offer an annual capacity of 360,000 TEUs per year.

The upgraded rail yard will feature two new rail mounted gantries over four rail lines. Total terminal yard capacity is expected to be increased up to 600,000 TEUs per year, in line with demand.

Guayaquil concessionaire Contecon has been granted an extension to its original 20-year concession awarded in 2007. In return for additional investment, the company’s concession has now been extended until 2046. Contecon will spend $515 million until the end of its concession, during which time it will reinforce the quays, increase the height of its cranes and fund dredging work alongside the berths and in the turning circle of the port.

Federal Court

The Australian Federal Court has ordered New South Wales Ports and the Australian Competition and Consumer Commission to mediate their disagreements over port privatisations. Currently, Port of Newcastle will have to pay fees to the government for 50 years should it choose to build and operate a container terminal. ACC criticised this as anti-competitive.

The parties must agree a mediator by January 31, 2020 and attend a conference with the mediator by April 3, 2020.

Luka Koper

Luka Koper, operator of North Adriatic port of Koper, has published its Business Plan summary for 2020 and Business Performance review for 2019. In 2020, the company plans to increase net sales revenue by 4%, noting that maritime throughput increased by 23.4 million tons for 2019, up 3%. Net sales revenue for 2019 of €228.5 million, was 1% up on 2018, but 6% below budget.

The Group’s 2019 net profit reached €39.4 million, exceeding budget by 3%, with operating profit on budget at €44.2 million.

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NEWS REVIEW

DOUBLESTACK TO FINALLY ARRIVE IN BALTIMORE? The Maryland Port Authority has confirmed that it has secured the final US$103 million funding required to help bring doublestack rail to the Port of Baltimore.

As a result, the port authority is now able to move forward with its US$466 million Howard Street Tunnel project, which will enable the port to offer doublestack rail and, therefore, be more competitive in its ability to compete with other East Coast ports, such as New York/New Jersey and Virginia, to serve the US Midwest with discretionary cargo.

The project had recently gained a US$125 million federal grant and along with the US$147 million contribution from the Maryland Department of Transportation and a US$91 million contribution from CSX Transportation meant that 80% of the funding was in place. Now, the missing piece has been secured, although James J. White, executive director of the port authority has said that the source of this final US$103 million could not be divulged.

The challenge to gain necessary funding for the Port of Baltimore to improve the Howard Street Tunnel has been a long process, dating back to 2012 and it even collapsed in 2017 when CSX Transportation withdrew from the project.

There are also other local, perhaps less publicised factors of interest here too. Baltimore residents have openly stated on social media sites for some time that the Howard Street Tunnel is

BEST get cold ironing

The port of Barcelona is to make electric power available to all docked vessels in Summer 2020. One of the first locations will be the Hutchison Ports BEST container terminal on El Prat Quay, which already receives calls from MSC’s 8500 series vessels that are already designed to use shore-based power. Ports in Palma de Mallorca, Las Palmas and Tenerife will also offer this service during the course of this year.

8 Is there light at the end of the tunnel in Baltimore?

around 150 years old, is underneath a major US city and was never designed for the amount of rail activity that will be

CONTRECOEUR ON TARGET IN MONTREAL The Canada Infrastructure Bank (CIB) has confirmed that it is to work in partnership with the Montreal Port Authority (MPA) to help develop the new, largescale container terminal in Contrecoeur.

A memorandum of Understanding has been signed in which CIB and MPA will develop the financial structuring of the proposed new facility, with key areas of planning and procurement for the design, construction, financing, operation and maintenance of the new terminal addressed. MPA also stated that this joint process could also lead to a potential investment in the project for CIB (subject to all due diligence and decision-making processes being approved) CIB has confirmed that it will

provide C$300 million and follows news that the Canadian government has increased the port’s borrowing limit from C$130 million to C$420 million.

The remaining funding will have to come from private investors, although Vice President of Contrecoeur, Ryan Dermody, has already confirmed that there are several nonbinding agreements in place.

Total project costs are estimated to be between C$750 million – C$900 million.

Dean Davison, Technical Director at WSP confirmed that current Port of Montreal capacity is 1.85 million TEU per annum and completion of the VIAU Terminal will bring port capacity to 2.1 million TEU per annum, but it will

still be insufficient. “Montreal’s total throughput is expected to reach at least 1.8 million TEU in 2019, which means it will be operating at just over 85% of capacity – above the normal threshold at which ports like to operate most efficiently.”

Despite being an established port serving mature economies, Montreal continues to see good volume growth, helped by its uniquely-balanced trade, with 5.1% per annum achieved since 2014, further emphasising the need for more terminal capacity at Contrecoeur.

Talks are ongoing with Termont and MGT to be the operator.

Algeciras agrees

Container drop

Hutchison to acquire

Algeciras Bay Port Authority (APBA) has approved its 2020 Business Plan, which includes investment of €233 million over the next four years. Of this, €21 million will go to port-city projects. For 2020, total planned investment is €62.8 million.

Among projects for 2020 are a new access to Saladillo dock, completion of dredging to a depth of 18.5 metres alongside Juan Carlos I quay and upgrades to ro-ro infrastructure to reflect rising traffic.

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

Port Strategy Jan-Feb 2020.indd 13

occurring if doublestack trains were running. These are all factors that engineers would need to address, along with

configuring how some parts of the tunnel need to be raised and other parts require lowering.

Although the requirement for doublestack access for Baltimore is a longstanding issue, competing ports in the region themselves have continued to invest and improve their facilities.

At New York/New Jersey, for example, the new $356 million Greenville Rail Yard has brought additional intermodal rail capacity and finally means rail capabilities to the GCT Bayonne terminal, while targeting removal of over 375,000 truck trips per annum.

Figures released by the Canary Islands’ Port of Las Palmas show that, in the first 10 months of 2019, it lost throughput amounting to 111,000TEU, a drop of 11.6%. Transshipment traffic was hit most of all, falling by 27.6% in October 2019 compared to October 2018.

However, overall, total traffic rose by 0.91% to 22.18 million tonnes during this period, with the fall in containers reflecting continuing changes to the regional transshipment market.

BRIEFS APM T has signed a letter of intent for the sale of its Rotterdam portbased APM Terminals Rotterdam to Hutchison Ports (owner of adjacent ECT Delta terminal). The deal confirms no forced worker redundancies within 4 years of the agreement being signed, although consultations are ongoing with trade unions and must be successfully secured.

Hutchison Ports is believed t o be discussing an extension of the lease with the Rotterdam Port Authority.

JANUARY-FEBRUARY 2020 | 13

11/02/2020 09:01

Valenciaport

where everything is connected

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

Port Strategy Jan-Feb 2020.indd 14

11/02/2020 09:01

THEECONOMIST BEN HACKETT

LEVEL PLAYING FIELDS IN THE PORT SECTOR Intra state and intra region competition to attract investments is rife around the world with subsidies and state aid. But, is it fair?

Shipping and ports have benefitted from tax friendly regulations virtually since time immemorial. We only need to think of flags of convenience as they used to be called, state, regional and local subsidies and tax breaks to ports, special tax treatment of profits for shipowners (think of the various tax schemes available in many EU countries for investors and financiers of ships such as the German Kommanditgesellschaft KG). The list is long and goes on in various disguises in most countries around the world.

Why have such subsidies in the maritime sector? The argument goes that investment in infrastructure, whether fixed or mobile, benefits the economic good of the host country with significant multiplier effects on third party investment and economic expansion. A rule of

thumb of four-to-one was regularly used when assessing port investments, for example.

The EU Commission has spent considerable time trying to identify subsidies and tax benefits and is making the best efforts to end these practices to avoid unfair competition between many of the littoral states such as

8 Why have subsidies in the maritime sector?"

Germany, Netherlands, Belgium, France and Italy.

Going beyond the state aid options of direct payment and/or no payment of corporate income taxes the biggest method of subsidising the industry as widely

as possible has been the use of developing “free zones” with the “free” referring to taxes. This subject recently came up when UK Prime Minister, Boris Johnson, confirmed plans to set up six free ports and will launch pilot schemes as soon as possible after the UK leaves the EU. Apart from the fact that he failed to note that free zones are perfectly legal in the EU with more than 80 of them across the EU. These special economic zones, in which the normal tax and tariff rules of the country in which they are based do not apply are accepted by the EU T The argument is that these zones generate new investments beneficial to the economic well-being of the host country.

Critics suggest that they entice investments to shift from another region or country.

As such they will surely come into the competition sights of the EU Commission. It will, however, be a long time before we see the reality of level playing fields in the maritime industry.

THESTRATEGIST MIKE MUNDY

CONCESSIONS: WATCH OUT FOR THE TWO BIG LANDMINES If there are two things that can go wrong with a concession process – a new concession or a renewal – they are the lack of proper structure and what can be described as the ‘human factor,' effectively a major disagreement between parties.

Both can be avoided…

Proper structure to the offering of a concession is a big contributor to delivering a balanced arrangement – fair to the investor, to the agency charged with offering the concession and ultimately delivering benefits along the supply chain right through to the man in the street.

There is usually a considerable body of work involved in getting this right, structure takes time to assemble properly and for many

parties a sensible step is to enlist outside support in the form of specialist consultants active in the sector. Essentially no two concession opportunities are the same, they all have bespoke elements to a greater or lesser extent, but while there is no 100 per cent template assembling a robust concession process can benefit immensely from drawing on hard-earnt experience. This option should be taken seriously from Day One – it is of immense benefit, for example, to know where all the potential landmines are.

There is also a very objective element to being able to draw on such a resource – it helps promote decisions being made rationally without fault or favour.

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

Port Strategy Jan-Feb 2020.indd 15

A good example of the chaos that can prevail – frustrated investors, sub-standard operations, higher costs and loss of business – is the current situation in Douala, Cameroon where a poor concession renewal process has resulted in conflict to the detriment of the operation overall.

In terms of the human factor introducing negativity into concession arrangements there is arguably no better example than that of the dispute between President Ismail Omar Guelleh (IOG) of Djibouti and the Franco-Djiboutian businessman Abdourahman Mahamoud Boreh which manifested itself in Djibouti initiating legal action against Boreh, accusing him of misappropriating funds in his role

of Chairman of the Djibouti Ports & Free Zones Authority, when the Doraleh Container Terminal (DCT) concession was awarded to DP World in 2013. Now, after the illegal expulsion of DP World from DCT, a decision by the London Court of International Arbitration which saw Djibouti ordered to pay USD385 million to DPW in compensation plus other factors lining up in its favour there are signs of both a rapprochement between IOG and Boreh – they are talking – and between Djibouti and DPW. Time and time again experience tells us that there is no substitute for constructive discussion to resolve differences over concession agreements – the legal path is, realistically, the

JANUARY-FEBRUARY 2020 | 15

11/02/2020 09:01

THENEWYORKER BARRY PARKER

Lately, the dys-function, or non-function, in Washington, D.C. is palpable. Over the past three years, big hopes for a grand infrastructure Bill have been dashed. Nevertheless, and looking past the ongoing Impeachment proceedings, both sides will need to be seen as backing something positive.

So, remembering that infrastructure was a signature issue for President Trump (Republicans) and was on Democratic Rep. Pelosi’s “Big 3 issues” list of last year, maybe there is hope. But there is a famous quote, from the late Tip O’Neill (who held the same “Speaker of the House” role that Rep. Pelosi holds now), along the lines of “All politics is local.” In the New York region, ferries have been getting an outsized share of headlines. Transit advocates at the local level fight with a different brand of venom than political figures on the national stage, but they do hit hard.

New York City’s ferry program, still in its early stages, has come under vicious attack as a money-pit (per ride subsidies are high) benefiting affluent

BACKING SOMETHING POSITIVE AS FRONT-PAGE NEWS

residents- making it into a local news outlet renowned for its “Page Six” gossip column.

Meantime, Congresswoman “AOC”, whose district includes “La Guardia Airport”, has urged Federal planners to consider ferries as a possible complement (or maybe an outright replacement) for an ill-conceived surface transport plan to improve access from the central business areas of New York City to the airport. Adding to the headlines, the local Coast Guard took unprecedented action against a

8 USA infrastructure pros and cons

private ferry operator which valued schedules over safe practices, shutting down substantial portions of its fleet until deficiencies could be corrected.

Fortunately, the politicians stayed out of this one, though they did figure prominently in a spat with the same ferry owner regarding a maintenance facility on the New Jersey side of the harbour.

Offshore wind energy (the subject of my article in this issue) has not seen the media interest as passenger ferries, but the pieces for a very positive story are falling into place. The sector, seemingly bursting on the scene in the past year, promises to bring jobs and some revival to under-utilized stretches of waterfront in the New York area (and elsewhere along the coast).

Unlike the ferries- which are not central to port planner tasks, offshore wind needs to be considered alongside mainstays such as containerships and tankers. Offshore turbines (not “windmills”) are very much the stuff of politics- with state governments behind the mandates (and power purchase arrangements) fuelling the move to greener more sustainable energy generation.

Yes, some of the local news is indeed gossip worthy, about “Page Six”, but the news that we might get from Washington, D.C. on bigger picture infrastructure issues, could actually be front page news.

THEANALYST PETER DE LANGEN

SMART PORTS & SMART CITIES A number of leading ports (including, Barcelona, Rotterdam, Hamburg and Montreal) decided to participate jointly in the Smart Cities Summit, held in Barcelona in 2019. Two things became clear from this event.

First, the smart city concept has tremendous traction, many leading city regions presented their strategies and many solution providers presented their latest offerings. The smart cities concept is holistic and includes aspects such as better use of information and communication technology to manage infrastructure (such as the energy grid), flows (such as

16 | JANUARY-FEBRUARY 2020

Port Strategy Jan-Feb 2020.indd 16

passenger flows) and the use of assets (such as streetlights).

Smart city also has a ‘governance dimension’: it allows direct interaction between city governments and residents and empowers residents (for instance enabling jointly investing in sustainable energy generation).

While there is no defined ‘end state’ (this is what a smart city looks like), it is clear that major improvements to the functioning of cities can be achieved, with huge effects for the way we live.

For instance, think about what happens to our cities if we can get rid of many parking places in cities, reduce traffic densities through much improved

utilisation of (shared) vehicles, dramatically reduce emissions through switching to electric vehicles and re-use waste to create value (for instance using used materials in construction and re-use food residues). If we connect all the dots, it becomes clear that the smart cities transition is a major transition; Rifkin (an influential academic and consultant) closely links smart cities to the 'Third Industrial Revolution’.

Second, smart cities and ‘smart ports’ (another concept with substantial traction), are deeply related. Most major ports are located in and mainly serve one or more urban regions. The

evolution of mobility, waste management and processing, energy generation and distribution and construction has major implications, for the volumes handled by ports serving metropolitan regions (where around 80% of global consumption takes place), for the role of ports play in energy distribution and production and for port operations, especially the landside flows of goods. In short, for most ports a ‘smart ports in smart cities’ approach may be better than focusing on smart port operations in isolation. This calls for much closer cooperation between ports and cities than is currently common practice.

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

11/02/2020 09:01

THEENVIRONMENTALIST CHARLES HAINE

Never is there a better time than the turn of the year to do a Crtl+Alt+Del. We hurtled towards the festive break in the vapour trail of a 2019, characterised by geopolitical noise and trade squabbles at the global level and ever-increasing speedy logistics closer to home. Who didn’t use the internet to order presents last year?

We are seeing an era of big change. Trends in our consultancy commissions at WSP drop monster hints about what’s occurring in the wider world of trade, ports and port-cities.

In January, Larry Fink, Chairman at Blackrock, made a seismic announcement. They’re putting climate-risk analysis at the heart of future investment strategies. They’re invested in over $630bn of assets. The Bank of England also announced that seven lenders will ‘stress test’ the climate resilience of their investments. It’s coming – fossil fuel-related projects will be on the wane. Lenders are proactively looking to support cleaner developments.

Leading on from that, business influencers – such as the Aldersgate Group – are calling for mandatory TCFD (task force on climate-related financial disclosures, the 2017 Michael Bloomberg initiative) reporting from all companies. This will require publication of decisions and forward-thinking on climate risks and opportunities in directors’ reports. ‘Mitigation’ (GHG emission reductions), ‘adaptation’ (becoming more resilient to the 50-70 years of climate hurt we are already locked into) and ‘transition risks’ associated with the global push to net zero are included in that.

Inherently connected to these, products for insuring liability in the insurance world are evolving.

Talking to professionals in that sector, the thinking is that we might be close to a company going down as a result of negative market responses to greenwashing. That’s where a company’s misleads customers about the environmental or climate credentials of its

Copyright: Gibraltar Port Authority

KEY TRENDS GOING INTO 2020

Post-IMO 2020, tremors from the new low-sulphur fuel regulations in maritime shipping may have knock-on effects on broader-ranging fuel and efficiency programmes in the supply chain. Coupled with the public health outrage of poor air quality, this could affect rail, road and river transport. CNG Fuels is the leading supplier of bio-CNG (compressed natural gas) sourced 100% from renewable biomethane

products/services. Just watch the adverts between TV programmes to witness examples of such oxymoronic claims.

Post-IMO 2020, tremors from the new low-sulphur fuel regulations in maritime shipping may have knock-on effects on broader-ranging fuel and efficiency programmes in the supply chain. Coupled with the public health outrage of poor air quality, this could affect rail, road and river transport. CNG Fuels is the leading supplier of bio-CNG (compressed natural gas) sourced 100% from renewable biomethane. It cuts GHG emissions by 85% and costs 45% less. Two haulage companies are using it in the UK, so in this net zero era – what’s the business and reputational case for using diesel now?

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

Port Strategy Jan-Feb 2020.indd 17

There’s a food revolution underway as our understanding of the health implications of eating processed foods is starting to bite. Ordering, transport and the stocking strategies of retailers will shift.

Quorn (Greggs’ vegan sausage roll anyone?) is the first major brand to declare it will publish a carbon label. That’ll be a challenge for shipping although less so for ports, which contribute only a fraction of the carbon footprint. Many people I know have stopped buying fruit and vegetables from far flung locations. People are talking about carbon miles vociferously.

Ethical supply chains will gain more publicity in 2020. You can add to the sizzling skillet above more scrutiny and an evidence base in manufacture and

8 Climate-risk analysis at the heart of investment strategies

transportation without traces of child labour, payment at living wages and decent working conditions. Might we see apps using blockchain capturing environmental, social, carbon and sustainability data? I think it’s just a case who wants to lead on that.

Port and terminal operators are evolving into the smarter ways of working, using widgets, add-ons and plug-ins to allow compatibility in existing digital platforms. This is in cargo handling through to workforce training, which, in turn, will include upskilling on digitisation itself. We will see increased automation (where there is a labour supply crunch), machinelearning and use of AI to accelerate decision-making.

Expect to see more outsourcing and partnerships in the supply chain as companies realise specialists can perform certain functions faster and cheaper.

Good news for port-city relationships. With mayors and city organisations taking a lead on climate resilience and being future-ready, we will see chances to support – or at least consider – more community and citizendriven ideas and innovation.

JANUARY-FEBRUARY 2020 | 17

11/02/2020 09:01

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11/02/2020 09:01

SPECIAL REPORT: IRAQ

AL FAW – RICE BOWL RATIONALE? Iraq’s huge Al Faw port project moves slowly on. But is it really necessary or is it just a 'rice bowl' for a select few enabled by dysfunctional government?

To anyone wondering why the people of Iraq are fed up to the point of risking their lives in protests against incompetent, dysfunctional and corrupt government, look no further than the Al Faw port project.

It appears to be a text book case study in a government and civil society short on technical and commercial competence as well as oversight and “checks and balances” but inventive and “entrepreneurial” when it comes to kickbacks and corruption.

The Al Faw project, in the eyes of many sector specialists, is a woefully unrealistic and unnecessary project. It shares some characteristics with neighboring Kuwait’s longsuffering port project at Boubiyan Island. But, unlike Kuwait, Iraq cannot afford such reckless and wasteful spending.

According to Iraq’s National Investment Commission’s plan (as presented in 2018), the Grand Port of Al-Faw will cost USD 6 billion and have 3.5 km of container berth, 3.5 km of bulk berths and 4.5 km for general cargo as well as 23 km of breakwater and a 30 km navigational channel.

It is readily apparent this will be an extremely expensive port. The breakwater alone is likely to cost in excess of USD 1 billion. It has quietly been under construction since 2012 by Daewoo construction and Archirodon. It has faced challenges – with part of the breakwater already collapsing without it becoming a news item. More recently, new contracts have been awarded for a 4.5 km temporary dyke (USD 200 million) and roads (USD 70 millions).

It would be an ambitious project for any healthy economy.

For Iraq, it is highly questionable with no remotely realistic commercial rationale underpinning it.

Current seaborne cargo throughput of Iraq’s ports is about 1.2 mill TEU containers, one million tons of general cargo and four million tons of bulk (grain, rice and cement primarily).

This is more than adequately handled by the Port of Umm Qasr which has ample existing additional capacity and plenty of space for further berths and yards being constructed (and can be upgraded to handle the world’s largest vessels by dredging its channel and basin for a fraction of the cost of Al Faw dredging).

Further, it is true to say that Umm Qasr Port is actually turning into a relatively high-quality port – with three international container terminal operators (Gulftainer, ICTSI and MSC) already operating in the port and various investors lining up to build further capacity in the port. This is impressive for the Arabian Gulf where no other port has the same level of intra-port competition (Abu Dhabi will eventually have three operators – when MSC’s terminal is built).

So, what is the argument for such a large investment Al Faw? FLAWED VISION Politicians and bureaucrats point to a larger vision where Basra is a gateway to Europe, harking back to the legendary Baghdad to Berlin (via Istanbul) railway but updating it so that now Asian imports to Europe will be shipped to Basra and then sent onwards to Europe on rail from Basra, via Baghdad.

Apparently, the idea is that this will be a much better product than using the Suez Canal. (The original Baghdad to Berlin railway was built between 1903 and 1940 and never played any commercial role.)

Practically speaking, this is “pie-in-the-sky thinking” and the argument behind it is to say the least spurious. When the Al Faw project was launched in 2010, the Minister of Transport at the time (Mr Amer Abdul-Jabbar) told Reuters: "This port will be considered the 10th most important in the world because it will connect the Gulf with northern Europe ... This will change the road map for world transport policy ... This dry channel would be a shorter, cheaper and safer alternative (to the Suez Canal).”

Despite the size and predicted commercial importance of the project, it has been moving at a very slow pace and without much visibility and transparency. Surprisingly, there does not seem to have been any serious debate in Iraq about the project’s feasibility, viability or progress.

The project suffers from a distinct lack of commercial rationale and as such It is easy to conclude the main drivers behind its development are more its ability to generate the continuous awards of contracts (triggering government payments) to suppliers than any deep founded economic necessity.

The Grand Port of Al-Faw is a prominent example of Iraq’s dysfunctional governance. It shows the lack of technical capabilities of its professional classes and the lack of political or civil society institutions that provide oversight and “checks and balances” as part of public sector practices. Sadly this, in turn, facilitates private interests “capture” of government policy making and government expenditure for, at worst, private gain.

It is no wonder that Iraq’s ordinary men and women, seeing oil income squandered and siphoned away from the public sphere and away from desparately needed public services, explode in protest.

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

Port Strategy Jan-Feb 2020.indd 19

8 Al Faw – under construction but is it really necessary?

JANUARY-FEBRUARY 2020 | 19

11/02/2020 09:01

WINDFARM MARKETS: BALTIC

A JUICY CARROT FOR POLISH WIND – BUT NO PLAIN SAILING

Photo: Orsted

Poland’s nascent offshore wind industry is looking at a large and juicy carrot – a draft Polish Energy Policy calls for 8GW of offshore wind to be installed in the next decade, writes Stevie Knight

The headlines are calling it ‘one of the largest investments in the history of the Polish energy industry’ adding that it’s expected to be ‘the engine of economic development of coastal areas and the whole of Poland’. At the heart of it are estimates that it will create over 25,000 jobs, adding billions of zlotich to the country’s GDP. HUB POTENTIAL Local facilities are eyeing their marshalling yard and even wind hub potential, with the idea of planting the seeds for supply chain companies, factories and in the longer term, operation support services.

Yet as Monika Morawiecka, CEO of Polish utility company PGE Baltica notes, there are challenges. Offshore turbine power is shooting up, taking component sizes with it and, in particular, foundations.

Water depth and soil type also help define monopile dimensions. “From today´s perspective, 10m diameter piles and a total weight of more than 2,000 tonnes seem feasible”, says Marcus Klose of DNV GL. However, he warns that “predictions of the past have been exceeded more than once”.

Further, Jakub Budzyński of the Polish Offshore Wind Energy Society points out manufacturers will likely be offering turbines of 11MW or 12MW by the time Polish orders are placed.

Although this leaves a current shortfall in capable vessels, according to Morawiecka, market demand will yield solutions

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Port Strategy Jan-Feb 2020.indd 20

8 Szczecin is part of the supersized wind supply chain, with more facilities to join the rush

combining better levels of transport load capacity and lifting heights. She says this will “further improve installation times,” but admits the heft of the new ships along with the scale of the new components will “likely require some ports... to consider upgrades.”

Moreover, it is an expensive business. Even in the established wind port of Oostende in Belgium, in the last few years an additional €30 million was spent to widen the seaward entrance to allow the bigger installation vessels into its REBO Terminal.

Clearly, some are better prepared than others. REBO’s quays have been specified to 20t/m2 says CEO Dirk Declerck, adding, “so I think we are good for up to 15MW”. Yet since the scaling-up affects every aspect of the handling process, from cranes and barge transport to seabed and quay foundation reinforcement, he does expect a thinning out of older wind facilities for whom the extra investment is a step too far.

VIRTUOUS vs. BOOM-AND-BUST The problem, says Declerck, is wind has proved to be “a cyclic industry” but and even the well-known REBO Terminal is facing a considerable drop in demand after 2021 – unfortunately, the next utility bidding round is not going to be tabled until 2025/26.

Luckily for Oostende it has other options. Project cargo, decom and its science park (complete with ocean basin and towing tanks) gives it a ‘Blue Growth meets R&D’ appeal for

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

11/02/2020 09:01

WINDFARM MARKETS: BALTIC

HOT CONTEST Into this arena comes Poland’s 8GW prize, which promises to create “a large enough pipeline to incentivise needed investment and to guarantee adequate returns” for contract winners, underlines Morawiecka.

However, while she says that “location is the top priority,” the second element is “the local content factor,” meaning an expectation that the supply chain will swing in support of Polish companies. Further, the country is putting in place “legal tools to encourage developers to look for local partners”, adds Budzyński. PGE Baltica, responsible for 2.5GW of the development, is already in talks with Danish wind giant Ørsted.

Despite this, decisions on port facilities will likely come from an open tender, which means that while there will be some tilt toward home players, it is not the end of the story.

Poland’s biggest contender, Gdynia, “has a track record in both heavy project cargo and onshore wind blades and nacelles,” says Budzyński. Certainly, the port has a lot going for it including established barge transport and a group of stakeholders that span the city’s supply chain and manufacturing base.

So, while the port may still not be entirely ready to pick up a hub role for the initial projects, he confirms that, “Gdynia is one of the leading possibilities, but it still has a lot of investment ahead.”

Exactly how much investment it will take is not yet known, but there is some clue that the port is supersizing requirements for its Hungary wharf upgrade as it’s specifying yard space strengthened to 250kN and quay areas reinforced to 500kN. It will likely also create other supporting infrastructure such as pre-assembly sites, adds Budzyński.

Despite Gdynia’s future capacity, both the German port of Sassnitz and Rønne in Denmark currently have the advantage as they are already operating. Plus, other facilities may offer an extremely competitive bid given that they want to fill the gap in their schedules. As Declerck notes, a wind port’s territory can reach “over 300km in any direction”.

As a result, Declerck says that port hopefuls should realise how, “current players will defend their position against new entrants,” before concluding with a truly salient point. “People are already aware that further dilution of the market could be an issue.”

BEING MENTALLY PREPARED The cost implications have been complicated by “a very big jump” in turbine capacity, says Arnstein Eknes of DNV GL,

Photo: PortOostende (Bold Tern)

companies. Investing in research is key to the future says Declerck. “It is not only about having the infrastructure, it is about developing the base for upcoming technology which then feeds back to strengthen the business,” he explains, explaining that it creates a virtuous circle which should help to counter the boom-and-bust cycle.

However, Oostende is not alone, with many European facilities facing similar challenges. Sadly, this was avoidable.

WindEurope’s offshore ports group has been trying to convince developers and governments to ditch over-reliance on market economics and work with them on policy to smooth out the wrinkles in demand. “Without guidance from industry and sufficient planning timelines, ports face the choice of making investments without any guarantees of business,” it notes. Further, the organisation points out that even a contract can still result in non-paying assets, given short lease terms. Although gaining traction, WindEurope’s efforts to raise awareness of the problem haven’t prevented the next dry spell. commenting that as soon as the industry unveiled its 10MW size, manufacturers started looking at 12MW. Since these are now under development, there has been some talk about 14MW, although that may not be the end of it, as Eknes confirms. “Some are now saying we should be mentally prepared for 20MW.” So, it may be the industry needs to explore alternative technologies. Certainly, monopiles may require huge penetration depths in deeper waters, so there will be “some tough issues... which could affect foundation approaches”, says Eknes’ colleague, Henning Carlsen, stating how “jackets, gravity, suction or hybrid solutions could prove more costeffective.”

Eknes considers the issue further. “If we can considerably reduce the cost of floating wind, for example through economies of scales as we have seen in fixed offshore, then it could well be the answer for 12MW to 16MW turbines.”

However, he admits that is a challenge, as the engineering can be more demanding than for fixed installations, although it is the most likely answer for locations further offshore and interest is rising. One of the various Polish sites is in 60m-plus waters “so it will probably rely on floating foundations”, says Budzyński.

Yet as Carlsen explains, “any technology shift and the equations change very quickly”, the knock-on affecting what is required of ports. For example, floating systems allow a complete tower and nacelle to be constructed in port: a strategy currently being explored by Principle Power and Shell-acquired EOLFI. These could demand even larger prefabrication and float out facilities.

SHAPE SHIFTING Certainly, landside limitations are even now driving change, and this promises to continue no matter what technology takes the lead: “The weight and length of the towers and foundations are already too great to transport by road,” says Declerck.

Eknes agrees. “Putting 110m blades on a trailer and getting them around corners is extremely difficult.” As a result, there is a growing trend to bypass the highways entirely with components coming in by barge, before moving on via seagoing transport to the installation site.

This in turn will alter the character of future wind facilities.

“Locations which have not yet seen a huge industry boom... including some out of the way cruise ports, could find themselves in demand, as these are less likely to be impeded by bridges or other structures,” confirms Eknes.

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

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8 Ostende had to widen its entrance for bigger installation vessels

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11/02/2020 09:01

WINDFARM MARKETS: USEC

ONCE IN A GENERATION WIND OPPORTUNITY The US North Atlantic region is targeting a massive development of off-shore wind, as New York-based Barry Parker discovers At the close of 2019, offshore wind in the United States consisted of a tiny pilot project off the coast of Block Island (in the state of Rhode Island), with 30 megawatts (mW) produced by 5 turbines. By the mid-2020s, the business is expected to boom, with 8-10 gW (8,000 to 10,000 megawatts) expected to be generated along the midAtlantic and New England coasts.

New York and New Jersey have targets for offshore electricity production of 9.0 gW and 7.5 gW, respectively, by 2035. For ports in the region which seek to react to trade flow shifts typically happening over decades, it’s a potential oncein-a-generation type of opportunity. Patrick Bird, Managing Director and Global Head of Advisory at New York based Seabury Maritime, confirmed, “I wouldn’t be surprised if at some time in the past few months, nearly every terminal, public or private, between Maine and Virginia has been contemplating at least a partial shift in cargo focus to accommodate this burgeoning and increasingly more sustainable industry.”

Ports in the region are targeting the construction phases and then ongoing maintenance and support of the offshore turbines and the electrical infrastructure (cables and offshore substations for gathering power feeds). But the journey is far from straightforward. In a 2019 presentation at the Workboat conference (in New Orleans), Mr. Arnstein Eknes, Segment director Offshore Service Vessels and Special ships, Classification Society DNV GL, explained the complexities, saying supply chains in the U.S. from manufacturing to logistics are in early stages of development. He pointed to a circular argument, where businesses need to build scale, but cannot do so when there is no commerce. “Everyone wants local content and that brings a lack of efficiency,” he said.

RHODE ISLAND IN THE GAME Davisville, Rhode Island, Quonset Point (a one-time U.S. Navy air station) at Narragansett Bay, was an assembly hub for the 30 mW Block Island Wind project, which came online in late 2017.

The dimensions of tower components and blades necessitated large open staging areas and Davisville’s specialty in automobile imports made it ideal for this role. Plans exist for expansion at the port, with a proposal to invest $90 million for further site development. The port is the home base for a crew transfer vessel (built at the nearby Blount shipyard, just across Narragansett Bay) to service the Block Island wind farm.

Provport, at the top of the bay is also in the game. An executive from Deepwater Wind (a developer owned by the Danish behemoth Ørsted) said, in a statement: “The state is home to great port facilities at Quonset Point and ProvPort that were each essential to the development of the Block Island Wind Farm and are well-positioned to support future offshore wind development.”

EVOLVING COMPETITION As the offshore business evolves, the rules between cooperation and competition among ports are also evolving.

Mr. Bird, from Seabury Maritime, stresses that there is a role for multiple ports, and not always for the well-known names, stating, “Many of the major international gateways are limited in capacity but largely focused on other throughput intensive commitments, so it is difficult for large port complexes to adapt to the necessary functionality that offshore wind facilitation sites require.”

Mr. Bird elaborates further. “With the majority of niche ports and terminals in the Northeast having some sort of operational constraint, whether related to air-draft, laydown area or other limitations, the emerging offshore wind industry is creating a variety of exciting opportunities to handle at least some portion of the dynamic supply chain.”

OFFSHORE COMPLEMENTS EXISTING FLOWS? Offshore wind complements existing cargo flows, so says Patrick Bird, from Seabury Maritime, but admits, “Of course, breakbulk and other traditional commercial cargoes in the region are also not going away.”

Seabury Maritime recently worked with the Connecticut Port Authority and State officials to identify a terminal operating partner for its 30-acre New London State Pier site that could accommodate both the wind opportunity and the State’s historic cargoes.

As a result, terminal operator Gateway Terminals, alongside offshore wind developers Bay State Wind, signed a Terms Sheet in May 2019 to bring over $90 million of investment to New London, ultimately revitalising and transforming the facility as it narrows its operations around this amazing opportunity.” The Bay State Wind (also to be developed by Ørsted and Eversource) will serve utility customers in Massachusetts.

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

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8 Offshore wind to boom in the North Atlantic by the mid-2020s

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WINDFARM MARKETS: USEC Wind (900 mW, Equinor), in the New York Bight area gained approval to negotiate long-term power purchase agreements in July 2019.

With awards comes investment. “Equinor will also invest over $60 million in port upgrades in New York that will support future offshore wind projects and further strengthen the state’s position as the U.S. hub for offshore wind,” the company confirmed. In New Jersey, Ørsted received the goahead for a 1.1 gW (1,100 mW) project, “Ocean Wind,” to be sighted offshore Atlantic City. Ports around the Outerbridge area (near Staten Island) and those on the Delaware River are likely to vie for participation in supply chains.

8 Connecticut is getting into the wind power industry

South of Connecticut, a spate of contract awards in New York and New Jersey has brought excitement to port planners.

In New York, development of 14:53 SunrisePage Wind1 (880 WSP Jan-Feb 2020_WSP 27/01/2020 mW, Ørsted and Eversource), offshore Montauk and Empire

FUTURE METROPOLITAN NEW YORK ROLE Two existing facilities in the New York area have been promoting their future roles. Roughly 100 miles up the Hudson River, the private Port of Coeymans is playing a role in regional infrastructure projects, is already active in cement trades and is now producing “gravity-based foundations” for towers that would be barged downward out to offshore project locations, supported by Mammoet.

In metropolitan New York, along the Brooklyn waterfront, the reactivated South Brooklyn Marine Terminal is hoping to be a landside hub for offshore project work. The terminal’s

8 'Many large gateways are limited in capacity for wind projects', says Patrick Bird

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

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

24 | JANUARY-FEBRUARY 2020

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

11/02/2020 09:01

WINDFARM MARKETS: USEC operators state, “…the site’s adjacency to Industry City, a six million square foot innovation ecosystem, provides opportunities for R&D, support services, light manufacturing, and workforce development partnerships.”

Also, Atlantic Offshore Terminals, located on the Arthur Kill on Staten Island outside of highway bridges, could have a very important advantage - unlimited airdraft. If its plan moves forward, this facility could play an important role in assembly and trans-shipment of offshore wind components, particularly

those that need to be transported in a vertical position.

Seabury Maritime’s Mr. Bird stresses opportunities exist beyond the larger cargo ports. “We’ve witnessed many of the regional State power procurements of late see bidders include dedicated funding for facility improvements, to the benefit of some of these more niche ports.”

Unlike the decades-long reduction in jobs on the waterfront, offshore wind could bring beneficial employment and economic vitality on the coast.

Connecticut benefits from not in my backyard? the U.S. Outer Continental Shelf), which has Though the press is full of positive requested further information to supplement headlines, investment for the burgeoning an earlier Environmental Impact Statement. offshore business requires serious Meantime, Vineyard Wind (owned by commitments to boost local economies. In Spanish utility Iberdola- through its U.S. the early 2000’s though a final scuttling in subsidiary Avangrid Renewables, along with 2017, the “Cape Wind” project (which would a Danish infrastructure investment have seen 100 + turbines erected south of consortium) is also cooperating with the Cape Cod) was pummeled by all manner State of Connecticut in creating a hub, with of rejections, including Not in My Backyard significant employment of local trades and cries from local prominent residents. education for work offshore, at Bridgeport, A possible Vineyard Wind project, 15 miles Connecticut. It will serve a project called south of Martha’s Vineyard (with construction Park City Wind (named after an area on the originally slated for early 2019) has been port’s waterfront) to be situated in Vineyard slowed by the U.S. Bureau of Ocean Energy Wind lease area south Management (BOEM, which awards leases on29/01/2020 Becker Marine Jan-Feb 2020_Becker Marine 08:09 Page 1 of Massachusetts.

Illustrating the evolving relationship between local and regional roles for ports, Vineyard Wind, in describing its Park City project, says: “Bridgeport will play an integral role in many project opportunities in both Connecticut and on the East Coast.” But, up and down the entire East Coast, coopetition considerations are far from resolved. In mid-2019, the Connecticut State Port Authority announced it would invest $57 million at New London port, with an eye on a competing project (ultimately not chosen by Connecticut’s energy planners) dubbed Constitution Wind that would have been developed by Ørsted and Eversource (a large New England utility).

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www.hybrid-port-energy.com For the latest news and analysis go to www.portstrategy.com/news101

Port Strategy Jan-Feb 2020.indd 25

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WINDFARM MARKETS: UK

BLOWING IN THE RIGHT DIRECTION

Source: Port of Sunderland Nexans

John Bensalhia talks to a leading industry expert as he looks at advantages and trends wind farms offer for ports in the UK

The breeze is blowing in the right direction for alternative energy. For ports, wind farms provide clean, renewable energy and greater levels of energy efficiency. Plus, new job opportunities into the bargain.

Chris Lomax, Technical Director, Maritime, WSP, says that ports have a significant part to play in each stage of a wind farm's lifespan. While the main benefits of wind farms depend to some extent on the port’s ownership and operating model, he says that these relate to vessel and cargo movements and estate tenancy. “The extent of these depend on the stage of the offshore wind development and whether the port is the prime one supporting the wind farm or a supporting port to the main one,” Mr. Lomax explains.

SCOTTISH PORTS INCREASING ROLE More ports throughout the UK are becoming involved with important offshore wind initiatives. As confirmed in Scotland, the Port of Dundee has been selected as the preferred marine hub for a new offshore wind project with EDF. The wind farm will provide low carbon electricity for around 375,000 homes, with the port’s role crucial. It will be the assembly point of each one of the farm's 54 turbines, with completion of the project due in 2023.

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8 The Port of Sunderland supports the offshore wind industry

At the same time, Montrose Port is the operations base for SSE Renewables' Seagreen Offshore Wind Farm. With an expected completion date of 2024, the farm will consist of 120 turbines, and a total installed capacity of 2,610 megawatts, offering renewable energy power for more than two million homes.

A critical bonus of this project is that it is expected to provide additional (and needed) employment, with up to 410 wind farm operation jobs.

THE BIG PRIZE Chris Lomax says that the manufacturing phase of a wind farm is generally seen as the “big prize” for ports, although this is a rare opportunity. “The establishment of a factory, whether for nacelles, blades, towers or cables, is a long-term investment with regular vessel visits and cargo movements.

Fabrication facilities for foundations and offshore substations may be long-term or could be for a single project. Greenport Hull is the UK’s best example of a manufacturing facility, with the Siemens Gamesa blade factory.”

With regards to the Operations & Maintenance (O&M) phase, Mr Lomax says that, traditionally, these ports have been close to the wind farm, although the trend towards

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

11/02/2020 09:01

Photo: ABP Barrow Bosaklis Westminster

WINDFARM MARKETS: UK

larger Service Operation Vessels, rather than the smaller Crew Transfer Vessels, means that the O&M support is weekly or longer, rather than daily, and can be from a more distant port.

He explains further. “As well as the transfer of technicians and storage of equipment and spare parts, there is an occasional need for load out and installation of heavier major components. This may be undertaken from a suitable nearby port, possibly the original construction port, rather than the day-to-day O&M port. The trend towards SOVs rather than CTVs results in less frequent port visits, but with larger vessels. This can also impact on the shore-facilities required, and therefore the estate revenues for the port. Grimsby and Barrow, among others, have established themselves as hubs for multiple O&M support bases.”

Mr. Lomax adds that another aspect of O&M is the storage of spare subsea cable lengths. “A cable store generally generates estate income through rent but has rare and irregular vessel visits. The Port of Sunderland has a cable store for subsea cables.”

FULFILLING THE OFFSHORE SUPPORT BASE ROLE There are also opportunities for ports to operate as an offshore support base, as Mr Lomax explains: “The Port of Blyth has developed a focus on subsea cable installation, with a number of equipment designers having their assembly facilities at the port, plus installation contractors having bases for equipment storage, operational support and vessel berths.”

Current trends will have a bearing on future wind farm developments at ports. For example, the growth in component and vessel size, with a significant growth in wind turbine size.

Mr. Lomax explains that the impact of this is that the capability of ports to handle larger vessels, plus the ability for them to jack up at the quayside, and component handling, will need to keep abreast of demand. “This has seen some of the original offshore wind construction ports become outdated as the industry has changed.”

With respect to technology, digital technology may prove to be a disruptor for the O&M process. “Already remote monitoring

and drone inspections are reducing the requirements for some aspects of man-access. As these technologies mature, they may reduce the type and number of visits to the wind farms, which would impact on the port requirements.”

Another disruptive technology is foundation type. Mr. Lomax says that, to date, the majority of offshore wind farms have used monopile foundations fixed to the seabed.

“Perceived constraints on the water depths they could be used in (originally thought to be about 30m) have been overcome to some extent, pushing their use into deeper water (up to about 50m). However, there are a limited number of facilities that can produce monopiles of the required size, therefore other foundation types, such as jackets and gravity bases which require less specialised fabrication, have been considered.”

Role of ports depends on the stage of the offshore wind development and whether the port is the prime one supporting the wind farm or a supporting port to the main facility DRIVING FOR DEEPER WATER A final trend is the increasing drive towards deeper water (greater than 60m water depth). “This would open up opportunities in more countries, and access a much larger wind resource,” says Mr. Lomax.

He expands further. “These will require Floating Offshore Wind systems. These look to be being floated to site or transported on semi-submersible barges, both of which generally have increased beam and draught requirements to the majority of existing conventional fixed foundation installation vessels, and therefore different demands on the ports. They are also likely to require larger quayside assembly areas closer to the wind farm.”

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

Port Strategy Jan-Feb 2020.indd 27

8 "Wind farm manufacturing phase is the big prize to ports," says Lomax at WSP

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PORT SERVICES: BUNKERS

IS IMO 2020 SHIPPING’S ACHILLES HEEL? The new IMO 2020 fuel regulations have implications for the whole supply chain - with significant challenges remaining for second-tier bunkering ports, writes Stevie Knight Don’t expect very low sulphur fuel oil (VLSFO) availability issues to evaporate any time soon, says Adrian Tolson of Blue Insight. “Both local infrastructure and supply chain must adjust and while you build those up, nobody really knows how it will actually work out in the end. It’s going to be at least a year before we see equilibrium return to the global bunker market.”

Frankly, it is not likely to be a real issue for the big hubs, which - despite record prices nearing US$800/t and an early hitch or two - will probably have a full set of offerings.

However, Tolson adds that “barring a refinery around the corner” smaller-to-mid sized ports may find their modest bunker demand will not necessarily interest a VLSFO supplier.

Likewise, though MGO has often been regarded as the alternative ‘go-to’ fuel in emergencies as it is often utilised by harbour fleets, he explains that “suddenly ramping that up to ship-sized quantities on short notice could be difficult”.

Moreover, even familiar high-sulphur fuel – utilised by scrubber-fitted ships – may not be universally available. It remains to be seen whether HSFO will be mopped up by refineries as feedstock or moved into power generation.

ACHILLES HEEL Neither are all the challenges down to market dynamics. One of the biggest concerns fuel quality – and this hits shipping’s Achilles Heel. Back in 2018, over a hundred vessels were involved in what became known as the ‘Houston incident’, with cases of fuel contamination arising around the world and reports that some players “simply resold the debunkered fuel,” says Paul Collier of Clyde & Co. He believes if there are “significant quality issues” with VLSFO blends the market could be primed for a rerun.

While far from new to the bunkering industry, these troubles are magnified by the nature of the low-sulphur blends. According to Naeem Javaid of Lloyd’s Register’s FOBAS fuel testing service, “off-spec test results have doubled to 8%”, and while previously there were a number of reasonably minor reasons for failures, the main issues now are more consistently worrying, namely sulphur content that exceeds the IMO 0.50% limit and total sediment levels which flag up potential stability issues.

This latter problem is mostly down to what Javaid believes to be “an industry gap in upstream control of components”.

Firstly, blending for this minimal sulphur content is demanding. Secondly, the components don’t always make stable blends, allowing sludge to precipitate out, clogging fuel line filters and treatment plants.

There is also a further potential complication for ports with limited bunker tank space. Mixing even stable chemistries can end in trouble. For example, blending a low sulphur fuel from residual stock with a more paraffinic VGO blend in a holding tank will likewise cause sludge precipitation.

There is some disagreement as to what is likely to give the most trouble. “Everyone is testing for sediment or instability in the supply chain and on ships ….so getting a catastrophic

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surprise is not likely,” says Tolson, adding, “Most problems will be resolved before the fuel gets onboard.”

However, both Tolson and Collier are concerned about the sulphur content. “There is a natural variation in bunker sample results... so it’s possible for one bunker test to pass, while others narrowly exceed the 0.50% sulphur limit,” says Collier. This discrepancy stands to create trouble. “While the documents may show that the fuel supplied is within spec, a Port State Control (PSC) test showing higher sulphur content of fuel onboard may result in the vessel being detained or forced to debunker,” the executive added.

There is a further devil in the detail, adds Tolson. He explains that, there is an “inbuilt conflict between suppliers and purchasers”. That is, for the recipient, a test showing sulphur content at 0.53% meets the 95% confidence limit set

by ISO 8217, while suppliers to be certain of being on-spec must be 0.3% below the threshold. He points out this means that “the fuel limit can be set at 0.51% for one party, and at 0.48% for another”.

8 Once quality is assured ships will start placing more emphasis on price and overall logistics. Bunker ports may appear in new locations

IS BIGGER BEST? Put together, these pressures seem, at least at first glance, to favour the more prominent fuel hubs with higher throughput and more space to play around.

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

11/02/2020 09:01

PORT SERVICES: BUNKERS

8 Fuel cost may progressively enter into shipping line thinking when deciding port calls

So, could the larger operations squeeze out the smaller facilities? Indeed John Ghio, deputy captain of Gibraltar Port, admits there’s “been speculation” that the overall effect could be to consolidate the market.

Others feel differently. “We’re not yet certain of the effect on the supply chain,” says Tolson. “Once quality is assured ships will start looking at price and overall logistics. So, we might see bunker ports in locations we have not considered before.” He adds this might include places like Brazil and Argentina clustered around a supply of low-sulphur crude.

Other contenders could come from regions around China – which is pumping up its capacity to produce low sulphur fuel – or Sri Lanka, which might possibly be in the right spot for the Middle-East VLSFO supply chain, outside the Gulf region.

It is also plausible lines will reshape calls around fuel cost and the new pressures could mean some authorities make a concerted attempt to draw in traffic. That much has happened before, says Tolson. “For example, Vladivostok became a key containership calling point for many years during the last decade. It was not because Russia’s Far East suddenly saw huge container demand, but just that if you worked cargo, you were entitled to buy bunkers minus the export tax.” While that loophole has likely closed, there may be other price-cut offers to tempt in ship calls.

END OF COSY The fact is, smaller bunkering operations have usually just been “ticking along” says Tolson, “without too much intervention from the port authority”. However, since that cosy situation may be at an end anyway, what could ports do to protect themselves and their callers? The answer, according to Ghio, is “work at it”.

It may take quite a bit of foresight and most importantly, cooperation with the various supply chain players to mitigate unforeseen market effects, but it is possible.

For example, while he stresses Gibraltar has avoided VLSFO availability issues, like a number of other ports “it has seen some pressure on bunker barges” admits Ghio. When at the end of 2019 the forecasted distillate dominance failed to materialise “the blip suddenly meant bunker operators were forced to alter their segregation plans, to take into account the unexpected rise in VLSFO demand”. The port worked with all parties on the changed barge runs to smooth the way. He adds that “as a result, I think things are now settling down”.

Yet there are limits to what a port can really do – after all, it is the matchmaker, not the bride. As Ghio explains: “Even though we play a more active part than is the norm within the

port industry, we would still be unable to provide analysis in advance for all the products supplied within our jurisdiction.”

That, he says, “is an issue that does fall squarely on the purchasing party”.

Unfortunately, despite being a problem to be sorted out between buyer and supplier, if quality issues keep turning up, it stands to impact a port’s reputation – hence the efforts taken by Gibraltar to be pro-active in monitoring fuel quality.

Certainly, “if there’s a supplier repeatedly selling off-spec fuel, the authorities may well want to step in and take action”, says Collier. While this may simply prompt a search for an alternative provider, if a port wants to grow its bunker operation, there’s another possibility: “It depends on the desire but working with the state on legislation toward a licensing arrangement will give a further level of control,” he explains.

Despite industry pressure at IMO level not many have so far followed this pathway. Still, like Singapore, Gibraltar has found it yields a useful level of oversight – but, again, Gibraltar has paired this approach with effort: “We carry out unannounced inspections as well as tests on the bunker cargo,” he says, but adds there’s a pretty robust follow through - a product analysis which fails to meet the specifications set out in the bunker licence “leads to immediate action taken against the supplier, including the possibility of a stoppage of the bunker barge in question”. In addition, these issues “are taken into account for our consideration of renewal of the licence”, says Ghio.

Tolson concludes with a word of caution. “There is supposed to be a requirement for a bunker supplier registry,” he says, noting that it is not quite as demanding as a licensing agreement. “Currently, I believe, it is a possibility that is largely overlooked”.

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

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8 There’s natural variation in bunker sample results... possible for one bunker test to pass but others exceed the 0.50% sulphur limit

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

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SPECIAL REPORT: BRAZIL

DEAD AS A DODO IN BRAZIL? Home-grown Brazilian container port terminal operators could soon be extinct, as they face increasing competition. Rob Ward charts the transition

8 Carriers are getting in on the game and contributing to the demise of national operators

The past year has seen the final demise of Libra Terminals.

The private container port operator controlled by the Rio de Janeiro based Torrealba family, has seen Libra Rio sold to International Container Services Inc (ICTSI) and its flagship Santos operations (Terminals 35 and 37) close down.

On top of this there have been strong rumours, circulating in Santos, that Santos Brasil – South America’s largest box terminal operator – was also up for sale and both China Merchants Port Holdings and APM Terminals had shown an interest. Leandro Carelli Barreto, a Sao Paulo based consultant with Solve Shipping, says Santos Brasil is the last “noiva” (bride to be), of significant size in the Brazilian panoply of port terminals still in Brazilian hands and so will be much coveted by potential buyers.

Plus there is also Wilson, Sons, another of the few surviving Brazilian based port operators, which saw the “writing on the wall two years ago” and went through a long and tortuous process of evaluation – deploying several international audit and consultancy firms– and searching for a buyer, but in the end decided, in the middle of 2019 to continue with its two box terminal operations, in Salvador (in northeast Brazil) and Rio Grande (in the far south on the border with Uruguay) – see Wilson, Sons Removes Terminal from Market, for Now panel.

“It’s becoming more and more difficult for the independent Brazilian port operators to make a profit because of the continuing concentration of the shipping lines,” said Robert

Grantham, a director of Navegantes based consultancy Solve Shipping, who used to be Brazil country manager for China Shipping and commercial director at the Port of Itajai, before explaining the outcome. “Therefore Wilson, Sons and Libra had sensed an opportunity to cash in their assets while they still have some value to prospective buyers, be they units connected to shipping lines or international Terminal Operating Companies [TOCs].” (See Wilson, Sons Panel below).

THE PRIVATISATION PROCESS When the Brazilian port privatisation push began back in the 1990s – initially with Grupo Libra winning the concession for Terminal 37 or 35 in 1995 – it led to the eventual creation of a number of efficient, profitable companies that started to invest in modern, up-to-date equipment and offer good services for highly profitable rates. Santos had two large (Libra Terminais and Santos Brasil) and two small (Rodrimar and Tecondi) box terminals, but with little outside competition terminal handling rates remained artificially high until 2013.

The privatisation process in Brazil continued into the 2000s and by 2010 Wilson, Sons (two operations, one in Rio Grande in the far south of Brazil and one in Salvador, in the northeast), Grupo Libra (also with two, one in Santos and another in Rio de Janeiro) and Santos Brasil (with operations in Santos, Imbituba and Vila do Conde), which had become the biggest national TOC in all South America.

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SPECIAL REPORT: BRAZIL There were also individual terminal operators, including Tecon Sepetiba (in Itaguai, Rio de Janeiro state and owned by Brazilian steel giant CSN), Terminal de Conteineres de Paranagua (TCP) in the southern port of that name, Terminal Vila Velha (owned and operated since 1998 by Log-In Logistica, the last Brazilian owned container ship operator), Teconvi (in Itajai, which was eventually bought by AP Moeller Terminals in 2007) and the two mavericks in Manaus (Superterminais and Porto Chibatao).

Aside from market leader Santos Brasil, and Libra Terminais, the port of Santos, the biggest in South America for containers with an estimated 4.2 million TEU handled in 2019, also hosted Tecondi (now called Ecoporto Santos) and Rodrimar, which, as recently as 2012, handled 16.4% and 5% of Santos’s overall traffic of 3,171,685 TEU. That year, Tecondi handled a record 324,987 TEU while market leader Santos Brasil took 54.7% of the market, with 1.733million TEU and Libra handling 755,000 TEU for a 23.3% share.

However, during the first 11 months of 2019 (the latest figures available from Santos Port Authority), Ecoporto handled a mere 0.45% and Rodrimar close to zero – with all of those boxes lifted from ro-ro vessels.

NEW CAPACITY FOR SANTOS IN 2013 – AS PERFECT STORM ARRIVES Embraport (a joint venture of Odebrecht, the Brazilian owned construction giants and DP World, plus Coimex Trading) and BTP (another joint between Terminal Investment Limited (TIL – Mediterranean Shipping Company’s terminal investment arm) and APMT) opened for business in mid-2013. A total of 2.4 million TEU of extra capacity was added, taking overall capacity to 5.5 million TEU per annum. The demise of Rodrimar and Tecondi occurred promptly, although at the time managers at both installations insisted: “With the economy expanding the way it is there will be enough business for everyone.”

Then the impact of what veteran Tecondi/Ecoporto executive Luiz Araujo called “A Perfect Storm”, of more capacity becoming available exactly as the Brazilian economy began to stall, before it eventually tanked. Hence, shipping lines began to cut or merge services as the alliance system (2M, Ocean Alliance and The Alliance) began to take hold.

FIRST SUCCESSFUL INTERNATIONAL TERMINAL OPERATOR ARRIVES - ICTSI The first international TOC to enter Brazil was ICTSI, back in 2002 when it began operating Tecon Suape at the Suape Industrial Port Complex near Recife, in Pernambuco state. It now hosts a 750,000 TEU annual capacity terminal with a deep draft of 15.5 meters and the Philippine company has recently completed the takeover of Libra Rio (from Libra Terminais).

ICTSI has shown an interest in bidding for/taking over various other port facilities in Brazil to add to its other South American operations, which include Tecplata, in La Plata, 50 km from Buenos Aires, Puerto Aguadulce, in Buenaventura (Colombia) and Contecon Guayaquil (Ecuador).

Then APMT increased its share in Teconvi Itajai (taking 100% in 2006) and did the same at APMT Pecem on the north coast, and of course it also has a 50% share in the BTP joint venture with Terminal Investment Limited, the MSC stevedoring arm.

Mid-2013 was clearly a watershed time in Brazil. BTP (consisting of two shipping lines in Maersk Line and MSC) plus Embraport (then 50% owned by DP World now 100% owned) opened for business. This led to immediate handling rate cuts of 20% and many rates falling to between $100 and

8 Embraport Santos – new capacity from 2013 has squeezed national operators

$150 per move, after Libra became desperate to keep CMA CGM on board.

SQUEEZE ON INDEPENDENTS CONTINUES The pressure on independent Brazilian port operators has been exacerbated by the expansion of shipping line activity into port operations and it began with Alianca Navegacao (a subsidiary of Hamburg Sud originally, now part of Maersk Line) taking a 30% share of the Porto Itapoa project, just outside the southern port of Sao Francisco do Sul (70 km from Itajai). The project took a long time to get to fruition, with the first vessel not operated until May 2012, allowing MSC to become the first pure carrier to operate a box terminal in Brazil, via its share in Portonave, which opened for business in October of 2007.

APM Terminals always claimed it was an independent entity from Maersk Line, although the two companies have drawn even closer in recent years.

The third major shipping line in the port and terminal business in Brazil is CMA CGM. The French line has retained a keen interest in port concessions since around 2000, from Belem and Vila da Conde in the north, to Suape in the northeast and Santos in the Southeast regions.

At one point it looked like the French carrier, via its subsidiary Terminal Link (TL) would take over the two Santos terminals belonging to Libra Terminais (T-35 and T-37) when it switched several of its services there, saving the facility from closure. Ultimately, the ocean carrier moved to DP World Santos anyway.

Jan Hoffman, the head of the Trade Facilitation Section of UNCTAD (the United Nations Conference on Trade and Development) and former executive of ECLAC (Economic Commission for Latin America and the Caribbean) in Chile, says that events in Santos during recent years are typical of what has been playing out all over the world.

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

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SPECIAL REPORT: BRAZIL In the past a port operator would negotiate with a shipping line and if no agreement was reached on price their commercial people move on to the next, then the next until a deal is made “Over the past few years we have seen shipping lines increasing the amount of vertical integration in their logistics chains,” explained Hoffman, “and this has seen them buying into and developing port terminals all over the world. This and the purchase of logistics companies like CEVA [by CMA CGM] has led to a large degree of Verticalisation occurring in key ports around the world.”

Hoffman said that the UN had carried out several studies into the effects of “vertical integration” of carriers and the effect it is having on both multinational and national TOCs, and especially the way that “transfer pricing” is leading to carriers shifting tax liabilities to lower cost tax jurisdictions.

There is also the issue of preferential pricing for “outsiders”.

“Whatever APM Terminals charges to Maersk Line will not necessarily be the same as it charges others,” suggested Hoffman. He added, “It will not necessarily be a market price but what’s more convenient as to who pays more taxes in that jurisdiction.

He is sure of what has since occurred. “These scenarios were not taken into account when the concessions were drawn up and bid for and it’s very difficult for Competition Authorities to regulate this,” before also stating, “The big question is the Alliances. They are clearly strengthening the negotiating positions of the carriers.”

The UN stalwart pointed out that a few years ago when independent TOCs went into negotiations with carriers to bring in their services if one declined there were plenty more options available to entice in, but this is no longer true.

“In the past a port operator would negotiate with a shipping line and if no agreement was reached on price their commercial people move on to the next, then the next until a deal is made. Now there are really only three clients among shipping lines - the three alliances - so you cannot do that anymore and this greatly strengthens the negotiating positions of the carriers.”

Hoffman and other specialists, including Grantham and Barreto, have stated that the demise of national terminal operators will continue in Brazil, at least for now. There is a need for the economy and box movements to picks up.

Meaning the likes of Santos Brasil and Wilson, Sons can will wait until the “right offer” is made.

When negotiations begin again it will be carriers v international terminal operators all over again.

8 Tecon Rio Grande is off the market.... for now

Wilson, Sons Removes Terminals from Market After more than a year of discussions, Wilson, Sons – the Brazilian shipping group with 180 years of experience in South America – took its two container terminals, Tecon Rio Grande (TRG) and Tecon Salvador, off the market due to the lack of a suitable offer.

Reliable sources in Brazil told Port Strategy that Wilson, Sons directors felt the time was “not quite right” to sell off the two strategic box terminals, which they had valued at around Reais 1 billion (US$240.6 million) for the pair about one year ago.

It is also understood, from sources within and without Wilson, Sons that a solid bid was made for Tecon Salvador but not for TRG and also that a number of potential bidders – among them APM Terminals, China Merchants, DP World, Hutchison and PSA Singapore – were also put off by the “incerteza Juridica” (or juridical uncertainty) and the negative things said about Muslim countries and China by new President Jair

Bolsonaro (when he came to power in December of 2018) – this fed back into the juridical uncertainty that emanates from a fragile government without crystal clear policies and legal processes.

That was the view of one veteran Sao Paulo based consultant and he added that although TRG might be considered the more valuable asset – strategically located as the last Brazilian port before an extra day’s sailing to the River Plate ports of Montevideo and Buenos Aires and larger with 1.4million TEU annual capacity compared to Salvador’s 430,000 TEU – the strategy among carriers might be that they can save on the number of vessels in a string if they tranship from Salvador, in the northeast rather than turning in Rio Grande. Throughput at TRG was approximately 780,000 TEU and Tecon Salvador handled around 320,000 TEU. Not willing to split the two terminals, Wilson, Sons has indicated that it will

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

Port Strategy Jan-Feb 2020.indd 35

consider its options at the end of 2020 or early 2021.

In August of 2017 CMPH paid Reais2.9 billion ($694 million today but was $924 million at the time of the transaction) for 90% of TCP in Paranagua, equivalent to 13x the EBITDA (Reuters) of Brazil’s second biggest terminal for containers. MSC paid 11x EBITDA for the 50% of Portonave (in the Itajai port Complex) that it did not own. These ratios have, seemingly, set the perceived value among prospective sellers such as Wilson Sons and Santos Brasil.

One experienced analyst for an international consultancy said that the increased competition for TRG cargo emanating from Porto Alegre, in the guise of Santa Catarina operators Portonave, APMT Itajai and Porto Itapoa, could be another reason for carriers valuing Salvador more than TRG. “There seems to be considerably less competition for Tecon Salvador and that is bound to be a key factor,” he told Port Strategy.

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LEGAL: PRIVATE SECTOR INVESTMENT

GETTING STARTED – EVALUATING A PORT PROJECT INVESTMENT In this first of three articles focused on port sector investments, Watson Farley & Williams LLP, details the most important initial considerations The ownership, acquisition and development of ports and terminals requires significant financial investment. The private sector (both existing trade operators and financial/ infrastructure fund investors) is playing an increasingly important role in port projects; it is important both as a source of finance and as the provider of some, and in some cases, all of the services required for the successful operation of a port.

The Watson Farley & Williams LLP, Terminals & Ports Group, takes a look at some of the main points to consider when first evaluating a port project investment.

JOINT VENTURES Joint ventures provide an opportunity for partners to combine their resources and expertise and share the cost of an investment, but the structure will vary according to the jurisdiction and the specific nature of the port project. If a port project investment is structured by way of a joint venture, it is common for the partners to establish a local special purpose vehicle (SPV), in which each partner is a shareholder, with the SPV as the concession holder.

DUE DILIGENCE A key issue for any investor will be the due diligence to be undertaken to underpin their investment into a port project.

There is no ‘one size fits all’ approach to due diligence but for investments which are subject to English law, the investor is subject to the principle of ‘caveat emptor’ (buyer beware).

This means that the investor should carry out an investigation of the port project to identify any adverse factors potentially affecting the project and/or the investor’s long-term investment strategy.

MATERIAL CONTRACTS In carrying out a due diligence review in relation to a port project, there are many issues which need to be considered.

Importantly, the investor should verify the existence of any material contracts which may either favourably or adversely affect the project and/or the concession holder, and which may affect the investor’s projected return from the investment.

The main contract in any port project is the concession agreement. In addition to the points highlighted below, it is essential to verify that the relevant local law requirements have been complied with in granting the concession and there is no risk that the concession could be terminated or revoked due to non-compliance with such requirements.

Other ‘material’ contracts for a port project are likely to include terminal use agreements, key customer agreements and construction/operational agreements, as well as real property leases, leases for important plant or equipment, existing joint venture agreements (if any) and, if the project is already financed, loan agreements and other finance/security documents.

The main provisions to check in a material contract include: 5 Change of control clauses: commercial agreements may prohibit a change of control in respect of the concession

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holder or alternatively trigger termination rights, require prior consents or impose other duties related to the change of control, such as payments or requirements for extended notice periods; 5 Assignment or novation clauses: verify whether the consent of a third party (for example, a financial institution, government body or shareholder) is required in order for any transfer to be valid; 5 Payments: confirm the tariff structure and payment terms under the services agreements, as well as royalty payments due under concessions to grantors and income streams under any terminal services/usage agreements; and 5 Termination: consider the duration, expiry, extension and events of default, as well as other termination rights, any compensation payments due on termination and the rights of the concession holder to terminate the contracts.

8 Christina Howard

EXTERNAL FINANCING/BANKABILITY It is common for funding for a port project to be sought by way of external financing through a commercial loan from a bank or development fund or subscription for bonds. The financing may already be in place at the time of investment, or it may be sought post-investment.

If the external financing is in place pre-investment, the investor will need to review the finance arrangements as part of its wider due diligence review. If external financing will be sought after the investment, any company assessing a potential port project will also need to ensure that the project

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

11/02/2020 09:01

LEGAL: PRIVATE SECTOR INVESTMENT is ‘bankable’ to avoid future issues when approaching financiers as often existing finance agreements cannot be renegotiated. Local law advice should be obtained in relation to any specific local security or tax issues.

Concerns that will guide a review of external financing arrangements include: 5 Certainty and control: around the key contracts, including, in particular, the concession agreement - for example, verify whether the concession agreement contains any rights in favour of the port authority to withdraw or condition any permits or licences, or for a counterparty to terminate the concession; 5 Clear risk allocation and protection: in the key contracts, including, for example, exclusivity, liquidated damages, termination and termination compensation; 5 Change of control/consents: if any transaction will result in a change of ownership (direct or indirect) of the concession holder, confirm whether such change will trigger a change of control under the concession agreement/existing finance arrangements. Breach of any change of control provisions may result in a right for the port authority to terminate and revoke the concession or trigger a lengthy consent process or require repayment of the loan; 5 Onerous financial provisions: under the terms of the concession which may impact the concession holder’s ability to service the loan, for example, if the concession holder is subject to significant compensation requirements or penalties in the event of non-performance or breach; 5 Security: the ability to take security over the concession holder, as well as its assets and key contracts; and 5P ayment obligations: the ability of the concession holder to satisfy its payment obligations and repay the loan.

REGULATORY AND TAX FACTORS As with the other factors outlined above, regulatory and tax factors will depend on the specific port project, and local law advice should always be obtained. Timely and thorough due diligence should assist in identifying any concerns and/or issues.

8 Richard Stephens

Key considerations include: 5 Rights, licences and permits: ensure that the concession holder holds all the rights that it requires for the operation of the port project, including all necessary permits and licences; 5 Employees: check the terms of any collective bargaining agreement(s), employee benefit plans (including pension plans) and/or any requirements under local employment law which may affect the stability of the workplace as well as the profitability of the investment; 5 EU/competition: at the start of planning the project, conduct a full analysis of possible competition issues to determine (a) the possibility, availability and lawfulness of State Aid for investment in the port or other purposes; (b) whether the project structure needs to be pre-cleared under EU or national merger control rules; (c) whether any collaboration between actual or potential competitors would be permissible; and (d) whether any commercial arrangements for future use of port infrastructure or allocation of capacity will be regulated; 5 Procurement: verify that the relevant local law requirements have been complied with in granting the concession and there is no risk that the concession could be terminated or revoked; 5 Environmental: depending on the location and nature of the port project, analyse the local environmental laws and regulations and potential liabilities for the concession holder. The consequences of environmental liabilities can be very serious and if any such liabilities are identified during the due diligence process, appropriate indemnities should be included in the investment documentation; and 5 Tax: consider local corporate taxes, and any available tax reliefs, together with the tax impact of financing structures, such as local withholding taxes on cross border dividend or interest payments.

8 Christina Howard is a partner, and Hayley Arrow is a senior associate, in the corporate group; Jeremy Robinson is a partner in the regulatory, public law and competition group and Richard Stephens is a partner in the tax group at Watson Farley & Williams LLP. They are key contacts in WFW’s ports and terminals group.

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

Port Strategy Jan-Feb 2020.indd 37

8 Hayley Arrow

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TERMINAL GATE SYSTEMS

SAY HELLO AND WAVE GOODBYE Advances in technology are bringing an even higher level of sophistication for container terminal gates, as John Bensalhia discovers

A TECHNOLOGICAL LIFELINE The gate systems supply sector has been busy trying to keep up with the latest requirements of terminal operators across a broad range of criteria..

John Lund, Senior Agent, Americas, Visy Oy, explains that safety is a key benefit for its customers. “Between trucks and container handling equipment (“CHE”) movements, port staff are inherently in a dangerous setting. Through gate automation, we streamline processes and take people out of harm’s way,” he explained, adding, “For example, by implementing a gate operating system (GOS) with optical character recognition (OCR) and driver kiosks, we can move gate staff to remote viewing stations. In these operations, gate staff remotely work on gate transactions. They don’t need to be in the truck lanes at all, which is where accidents are most likely to happen. The effect of implementing a modern GOS is that cargo moves faster, and terminal staff will stay safe.”

With regard to keeping cargo moving Lund says that there are many great tools available to help terminal gates accomplish this “Using OCR to automatically identify licence plates and cargo units will increase the number of gate transactions that a facility can handle without increasing the number of traffic lanes or adding more staff. Driver kiosks are also a great way to cut time from every gate transaction and therefore increase throughput capacity. Truck drivers can perform gate transactions on a simple, automated, computer, like the check-in process at an airport. We help our customers do the most they can with the space that’s available.”

GATE SERVICES IN PLAY Faster container handling and lower waiting times can be boosted by port gate services. APM Terminals offers a number of initiatives and technological innovations that achieve these two aims. For example, containers can be delivered at an APM Terminal gate, where all Verified Gross Mass (VGM) handling is taken care of. Weighing and submission requirements are handled, with the relevant VGM data submitted.

Another notable innovation at APM Terminals is Early GateIn, which allows customers to deliver containers to Maasvlakte II at any time they choose.

This can save costs for the customer, which makes it such an attractive proposition. If part of the customer's delivery was taken to an inland storage depot prior to arrival at the

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Source: Visy Oy

A hello and goodbye can prove more challenging than you may think in landside terminal operations.

Cargo transportation faces similar problems. With greater eA truck cycling through a terminal has to be moved expeditiously while operating safely, securely and in compliance with all applicable regulations. Modern terminal gate systems – recently the subject of significant innovation – can play an important part in achieving this. They have a role to play in easing queues and general traffic congestion with automation playing a big part in this.

port, this results in extra transport and storage costs – not to mention the extra inconvenience of having to plan separate shipments.

Reduction in turn times is one of the benefits of Advent Intermodal Solutions' eModal PreGate appointment module.

This is used by Everport Terminal Services Tacoma (the operator of Pierce County Terminal, a 140-acre container terminal in Tacoma, Washington).

As well as lower turn times, the module boosts gate efficiency and cargo velocity. It provides the Port with crucial advance data with respect to transaction appointments, dispatch information, appointment window lengths and periods of grace. What the module does is to collate the information in advance, which then allows the terminal to plan for forthcoming cargo arrivals.

8 Modern Gate Operating System can deliver speed of processing and optimise safety for terminal staff

BENEFITS OF OCR Using OCR technology can considerably benefit container terminal gates. “Simply put, OCR saves time and money on every gate transaction,” explains John Lund.

“By automatically collecting data such as container ID’s, licence plates and chassis numbers with OCR and sharing that data with third party systems such as a terminal operating system (“TOS”), OCR systems keep those assets moving through operations. OCR systems will verify asset IDs faster, more accurately, and more consistently than clerks. Speed, accuracy and consistency are the fundamental metrics used to measure gate operations and OCR improves all three.”

The Orbita range of Gate-related systems covers a wide spectrum of benefits for ports. Identification is a crucial aspect of the Orbita GateCCR system, which allows users to instantly identify ISO containers as they are driven through a controlled access point. The system includes a licence plate reader and a video capture facility.

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

11/02/2020 09:01

Source: Visy Oy

TERMINAL GATE SYSTEMS

A useful element of container handling is to spot any potential damage to the container, and that's where Orbita's Automatic Damage Inspection System comes in. It is available for use in conjunction with the GateCCR and GateOS products.

Any damaged areas are reported, with the relevant data (including the location of the damage) relayed in real time.

GATE AUTOMATION One of the most notable trends is container terminal gate automation. The Orbita GateOS is a gate operating system that is designed for real-time remote management and automated operations. The required information from vehicle admission and exit is then shared with a terminal's TOS via any orthodox communication routes such as XML interfaces or WebServices. This system does not need an operator at the scene, so saves the port money and, additionally, it can improve performance levels thanks to centralised control of all gate events.

In July 2019, PD Ports in the UK announced that all traffic coming in and out of Teesport would be able to do so via a new automated gate infrastructure. Working in conjunction with automation solutions provider, CAMCO, PD Ports introduced a new interface to ensure swift, efficient entrance and exit for trucking.

The automated gate provides several benefits, including a convenient self-service facility for drivers, and speedy

8 TopView Turns Spreaders into Data Collection Points

processing of transactions, which in turn allows the port to effectively deal with the increase in unit throughput.

CAMCO's self-service offerings are a great boon for ports handling container cargo, and the vehicle driver responsible for the container. A CAMCO module can enable the driver to provide the necessary ID and registration without having to leave the vehicle. The data is instantly processed and checked, giving the port a faster throughput rate.

It's an easy experience for the driver, too. With a simple-touse and understandable user interface, the driver can follow an easy set of instructions. Registration, identification and transactions can be done via an accessible touch screen – and a further bonus is that all data is available in a choice of different languages.

Each gate is customised to a port's specific requirements, although a common denominator is the modular, sturdy design of the kiosk. The design allows for simple, fast and convenient usage for the port – whether in the line of installation, maintenance or component replacement.

The container terminal gates of the 21st century reflect that hello and goodbye. While bidding adieu to unwanted costs, congestion and delays, the container terminal gate greets a whole range of possibilities for ports. Better throughput levels, greater efficiency and fast, real-time information at the press of a button – the gateways to container handling are opening even wider.

Hot trends include Artificial Intelligence One of the hottest trends with respect to gate automation is the use of Artificial Intelligence (AI), especially deep learning.

“With AI, we can extract more data out of OCR images and therefore provide managers with even more real-time, operational data,” says John Lund. “For example, our Visy AREA systems uses commercial CCTV systems to track and trace cargo units and vehicles as they move through the port/terminal environment. We can then update third party systems in real time as to when they should expect transactions to happen (such as at

the interchange) and then update staff when the asset is in place and ready to be serviced. This allows operators to better manage asset utilization and ultimately save time and money on every transaction.”

Mr Lund adds that another trend is Visy’s new product called “TopView.”

“It places OCR cameras on spreaders therefore turning every spreader into a data collection point. Essentially, it makes the spreader, “smart.” The spreader is the one piece of equipment that touches every box on the terminal. By giving the spreader a set

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

Port Strategy Jan-Feb 2020.indd 39

of “eyes” and a “brain,” the spreader knows which box it’s moving and even keeps a photo history of its transactions.”

With some basic system integration, this will even prevent wrong moves and continually verify stack integrity. “TopView can be used on any spreader on any type of CHE,” explains Mr Lund, adding, “This includes STS cranes, RTG’s, mobile harbour cranes, reach stackers and straddle carriers. TopView is one of the most cost-efficient ways for terminals to invest in basic automation.”

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11/02/2020 09:01

CRANE SYSTEMS

INSPIRING CRANE POWER: THREE PRIORITIES Crane power systems need to take inspiration across three key areas to support port requirements, as John Bensalhia identifies In providing crane power delivery, today's equipment system manufacturers and providers need to take inspiration from three main watchwords. Environment. Strength. Speed.

All three of these aspects combined can then give a stronger foundation for bigger and better crane power usage in ports. Specifically, this facilitates products such as cable reels and festoon systems getting the job done in a fast, efficient and cost-effective manner.

ENVIRONMENTAL Taking the first factor into consideration, the crane systems of the 21st century are putting the environment at the forefront of their design and power delivery. A good example is Hartmann & König's motorised cable reels. These help to provide a far healthier alternative to, for example, diesel power.

The use of motorised cable reels provides cranes with a source of electrical power, which is ideal when, for example, it comes to retrofitting Rubber Tyred Gantry (RTG) cranes.

With more RTGs using electricity rather than diesel, the Hartmann & König motorised cable reels aim to reduce the levels of fuel consumption but not lower power delivery.

This process can also deliver the positives of optimising the available work time by avoiding the need for refuelling and reducing the time spent on maintenance.

order to maintain the best power provision in an energy efficient system.

REGENERATIVE ENERGY The concept of regenerative power provision plays an important part in Magnetek's AC Line Systems. The principle works by taking unused energy from the motor and then restoring it to the AC power source. For crane usage that involves adjustable speed applications such as high demand braking, the AC Line Regenerative System can be seen as a good option for boosting power efficiency levels with lower rates of total energy consumption.

Larger scale and heavy-duty cranes can benefit from this system because it eliminates the need to use wire dynamic braking resistors. This also means that it can deliver smooth and consistent power when being used in conditions that involve a high concentration of dust or during adverse weather, Magnetek's IMPULSE• range of units are said to help significantly with efficient power solutions, with the IMPULSE•R+ designed to add line regeneration to overhead cranes. The company maintains that this system is easy to use and can be retrofitted to replace extant controls' dynamic braking units and resistors.

Also, in the power-provision range, the IMPULSE•D+, offers active front end regeneration technology to ensure stronger and consistent performance. The application of the technology involved means the IMPULSE•D+ has the ability to keep line harmonics to a minimum and ensure that the IEEE 519 requirements are easily met (IEEE 519 being a system guideline for introducing limits on voltage and current distortion).

Magnetek recommends the combined use of IMPULSE•D+, IMPULSE•G+ and VG+ Series 4 variable frequency drives in

SPEED The second of the three key factors will operate on two different levels. Crane systems not only add extra strength and power, but also have to withstand tough weather conditions and environments without loss of power or performance.

Crane power and equipment usage can potentially succumb to factors such as dust or damage caused by salt water. Therefore, many crane power system products are made with extra strong materials such as stainless steel or galvanised sheet steel.

A good example is the Hartmann & König reel assemblies, which are made to endure more challenging conditions over a longer period of time. System suppliers also use special coatings to ensure that crane system components avoid the risk of wear and tear and thus of causing diminishing power returns.

Magnetek has also designed its crane system products to withstand challenging environments. Its range of I-Beam festoon systems include a trolley made from low carbon steel and hot-dipped, galvanised material, along with urethane coated wheels. Another initiative devised is to utilise cable protectors that shield the festoon cables from impact and acceleration forces to ensure consistent and smooth power supply.

Conductix-Wampfler's range of cable festoon systems also features materials designed to offer maximum protection. The company's C-Rail cable trolleys, for example, are available in a choice of material formats – zinc coating or stainless steel, which offer tougher resistance.

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8 Environment.

Strength. Speed.

Key elements in crane power supply

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

11/02/2020 09:01

CRANE SYSTEMS

The Conductix-Wampfler power supply system found on square rail cable trolleys is reported to be designed with maximum strength in mind, using galvanised or stainlesssteel material for the square rails. This arrangement aims to ensure efficient operation in dusty environments, both indoor and outdoor. Moreover, in operating conditions where cargoes yield high levels of dust, such as coal, aggregates or cement, the system is claimed to offer protection from breakdowns or loss of power due to the aggressive environment.

STRENGTH Due to the expansive nature of the festoon system, the design must also take strength into account. Cables transfer data and electrical energy, while hoses will be used for the likes of air, fluids and gases. Products like the ConductixWampfler system are said to be specifically designed using modern, innovative technology to ensure that the equipment and parts last for as long as possible – even when regularly used in difficult environments and/or poor weather.

Simbal's range of products similarly focuses on the need for strength without any loss of power. The Spreaderflex cable, for example, is manufactured to deal with high levels of mechanical stress in vertical basket incidents lifted by container spreader beams. Consequently, the drum reeling cables provide a higher standard of strength without loss of any operating flexibility.

This system is designed to withstand the bending and flexing comes with drum reeling and is09:59 provided Orbita that Jan-Feb 2020_Orbita 05/02/2020 Pagewith 1 a rubber outer sheath for extra protection.

Stemmann-Technik (part of Wabtec) offers a range of cable festoon systems that are also designed with a high degree of resilience in mind. Its collection targets a high degree of flexibility, with systems that can be used either for indoor or outdoor cranes.

One of the products available is a cable festoon system for T-Beams, using a cable trolley run on a steel girder. These trolleys are built to safely handle higher levels of weight, up to 1000 kg. This design allows ports to easily transport lengthy power or data lines and heavy hoses.

8 Cables have to be provided with a choice of material coatings

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

Port Strategy Jan-Feb 2020.indd 41

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CRANE SYSTEMS

Stemmann-Technik (part of Wabtec) offers a range of cable festoon systems that are also designed with a high degree of resilience in mind. Its collection targets a high degree of flexibility, with systems that can be used either for indoor or outdoor cranes Another of the Stemmann-Technik systems – the KW 1100 – was created as a response to the burgeoning need for both the loading capacity and efficiency of port cable festoon systems. The process uses a motor-driven cable trolley that provides strong control motion and precise acceleration, with no loss of power. Between each of the trolleys are tension relief ropes, which avoid the risk of cable strain, thanks to a created damped start.

The design also targets speed of operation and a reduction in the time needed for maintenance work.

Hartmann & König's motorised cable reels supply both power and data to ship-to-shore cranes, to help terminal operators achieve efficient cycle times through higher lifting capabilities and trolley speeds.

CUSTOM DESIGNED As well asJan-Feb addressing the current05/02/2020 challenges of environment, Camco 2020_Camco 10:46 Page 1 power and strength in standard designs, a growing number

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crane power systems are being custom designed to meet a terminal's specific needs. Depending on the environment, application and a range of other specified criteria companies such as Magnetek or Conductix-Wampfler all offer a bespoke approach to meeting specific needs.

8 StemmannTechnik’s cable festoon systems are designed to allow bending and flexing

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

11/02/2020 09:01

COASTLINK

SHORT SEA SHIPPING AIDS SUSTAINABILITY Short sea and feeder shipping represents a significant opportunity for maritime sustainability and the 2020 Coastlink conference aims to tackle the challenges ahead

GREEN REACH Unifeeder’s Netherlands country manager, Hans Meeder, who first joined the company in 2014 as feeder manager in Rotterdam and previously worked for Royal Burger Group as line manager for Xpress Feeders Ltd, will deliver the keynote address during session one, day one of the conference. He will focus on how the challenges of new rules and regulations can be overcome to develop opportunities in the form of new solutions, trade and knowledge building.

In December 2019, Denmark-headquartered Unifeeder acquired a majority stake in Singapore-based Feedertech Group, signalling its aim to increase its global reach, while supporting existing logistics capabilities and facilitating integrated services. Unifeeder has a strong interest in sustainable fuels and cutting emissions, demonstrated by its partnership with GreenStream to reduce fuel consumption. The company is also working with Nauticor to carry out LNG bunkering and prepare its feeder container ship Wes Amelie to become the first vessel in the world to run on Synthetic Natural Gas (SNG) generated by wind energy.

Continuing the theme of addressing challenges and opportunities in the sector, Catrien Scheers, chairman at Fast Group Belgium, will specifically look at how shipping can continue towards sustainability by contributing to the UN’s Sustainable Development Goals (SDGs), an initiative which this logistics service provider actively supports.

As host of the conference, the Port of Antwerp is very well placed to share its own experiences of contributing to efficiency and sustainability. The port offers weekly, fixed, short sea and feeder services to and from 200 destinations in Europe and North Africa, with the benefits of reduced congestion and emissions by taking cargo off the roads, combined with extensive capacity and cost reduction.

INTERMODAL INPUT Coastlink also represents the intermodal transport networks that support the sector and session two, day one of the

Credit: Port of Antwerp

Maritime stakeholders are seeking more efficient and sustainable operations in the face of changing power dynamics and stricter environmental regulations. The short sea and feeder shipping sector is playing a valuable part in this evolution.

Shipping companies, ports and logistics providers alike have all made notable investments in the sector, which has fostered some powerful partnerships and seen a culture of sharing best practise to build connectivity. However, these investments do not come without operational and technological challenges.

Coastlink, a neutral pan-European network dedicated to the promotion of short sea and feeder shipping, seeks to encourage solutions for all stakeholders at its conference.

Hosted by the Port of Antwerp, Mercator Media’s Coastlink conference will incorporate key insights into the market, from organisations including DP World-owned Unifeeder, the largest feeder and short sea network in Europe.

conference looks at linking short sea shipping to intermodal transport routes. Alex Veitch, head of multimodal policy at the Freight Transport Association, will lead a panel discussion on the topic. Speakers include Stephen Carr, commercial director at Peel Ports, who will explain the company’s efforts to strengthen the door-to-door supply chain service concept. Peel Ports has made notable investments in rail to bolster its supply chain activities and supports the Freight Transport Association in encouraging shippers to utilise short sea shipping.

DIGITALISING THE FUTURE Building connectivity is key to ensuring short sea services are streamlined, bringing us back to the question of how to develop and monitor efficiency. A topic ever-present in the bid to understand the future of the sector is digitalisation and innovation, and the focus of the conference moves to this area on day two.

Steven Schootbrugge, CEO of Chartworld, will outline how advances in digitalisation are changing and shaping the sector, while Martin Williams, technical director at JBA Consulting, will explain how the company assists ports in mitigating operational risks, through a combination of advanced simulation and analytics.

Offering a port perspective on innovation and how it can help short sea shipping is the Port of Tyne, which in Ju.ly 2019 was one of seven partners to launch the Maritime 2050 Innovation Hub. Based at the Port of Tyne, the Hub was established to support collaboration in developing solutions to the technological challenges facing the maritime sector and the global logistics industry.

8 Follow conference news with #Coastlink

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

Port Strategy Jan-Feb 2020.indd 43

8 Coastlink will address short sea and feeder shipping challenges

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11/02/2020 09:01

REEFER CONTAINER MONITORING

BEING SMART WHEN THERE’S A CHILL IN THE AIR The latest developments in reefer container monitoring technology are investigated by John Bensalhia The reefer container market remains on the upswing – a head of the dry van sector – bolstered by a number of influential factors including increasing demand for fresh imported food, continued penetration of non-container chilled cargo markets, bigger demand from the pharmaceuticals sector, new vessel deliveries featuring a high number of reefer slots and continuing technical innovation.

This growth combined with other considerations such as the pursuit of enhanced cargo safety and quality presents a significant area of challenge to container terminal operators.

A challenge which container reefer system suppliers are keen to confront – as is evidenced in the following review by Port Strategy of recent thinking and innovation in the arena of reefer container monitoring.

“Tracking and monitoring reefers is more important than ever,” explains Atul Jain of Refrigerated Transport Electronics (RTE). “Container Terminals have the need to be more efficient and have better control of their reefer operations and are looking for solutions to automate processes like temperature monitoring which, without a system in place, is a manual task, allowing technicians to focus on more important assignments,” he says.

“Terminals also need to have traceability of the data and operations and it must be available to their customers, elaborates Jain. “The automated acquisition of data that a reefer monitoring system like RTE’s GRASPTM provides makes this possible offering accurate temperature reading with alarms, power consumption measurement, plug / unplug event details as well as other key information available through a simple XML interface.”

Smart containers are absolutely becoming more common as shipping lines deploy remote telemetry solutions of their own.

We estimate some 600,000 ‘connected containers’ are in circulation worldwide today Al Tama, Vice President and General Manager, Container and Port Solutions, ORBCOMM, says that there has been an increase in the number of RFP / RFQ / RFIs in the container terminal space during the last 12 - 24 months. “The container shipping industry, in general, is shifting toward remote container monitoring, particularly for refrigerated and controlled atmosphere equipment.”

“Smart containers are absolutely becoming more common as shipping lines deploy remote telemetry solutions of their own. We estimate some 600,000 ‘connected containers’ are in circulation worldwide today. In some cases, shipping lines are monitoring reefer boxes on the terminal remotely from a central control and command centre. Integrating remote monitoring data into terminal operating systems (TOS) and

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other terminal IT offers a lot of potential benefit for improved operating efficiency and reduced claims,” says Mr Tama.

There are more remote monitoring solutions available to the industry and IoT (Internet of Things) adoption continues to grow. “The cost savings that can be achieved with remote monitoring are significant for all concerned,” explains Mr Tama.

“That includes the terminal, the shipping line, and inspection and service suppliers. The speed with which exceptions and breakdowns can be managed is greatly increased by realtime remote monitoring technology compared with manual checks every four to six hours (or worse). There are safety benefits also, of course, removing terminal and service personnel from the ground and allowing them to monitor containers from a central office instead. And automated pretrip inspections (PTIs) using IoT tools are becoming more common, saving considerable time and money.”

Today’s digital platforms also allow data to be shared among multiple parties, including the cargo owner / shipper.

“Of course, who gets to see data is at the owner’s discretion, but the technology is there for many different players to tap into a ‘single version of the truth’ with real-time data that doesn’t require manual input or intervention.”

Clearly, with reefer containers comes plenty of data for ports to pore over, from temperature levels to risks or hazards. See Captain Peter panel.

Refrigerated Transport Electronics (RTE), McGraw, New York, has launched GrAsPPTM, an Android application which is designed for the Reefer shipping industry.

The GrAsPPTM is compatible with the current ecosystem of RTE products.

GrAsPPTM can be used as an interface to RTE’s current GRASPTM systems or in conjunction with RTE’s new RRCE-

8 Comprehensive information of multi-criteria is now available via reefer monitoring

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

11/02/2020 09:01

REEFER CONTAINER MONITORING Today’s digital platforms also allow data to be shared among multiple parties, including the cargo owner/ shipper. Of course, who gets to see data is at the owner’s discretion, but the technology is there for many different players to tap into a ‘single version of the truth’ with real-time data that doesn’t require manual input or intervention BT (Remote Reefer Communication Engine – Bluetooth) device. A low-cost monitoring device compatible with all the reefer manufacturers, it allows monitoring and tracking when combined with GrAsPPTM while the container is in transit.

This new system allows continuous monitoring and tracking at a reasonable price point. GrAsPPTM, along with RRCE-BT, can provide precise data about temperature, controlled atmosphere variables, location, as well as reefer alarms.

“GrAsPPTM brings Reefer monitoring to your finger-tips and is one of our most innovative projects to date." says Derrick Hartnett, Project Manager for RTE. “GrAsPPTM will give users a flexible approach to monitor containers for their needs,” adds Donald Vinson, CEO of RTE, who also believes that GrAsPPTM has the potential to be a sustaining innovation for the industry.

Identec's Reefer Runner is also providing customers with a solution that keeps a fresh eye on reefer containers. The remote monitoring and control system addresses every aspect of linking the container with hardware that then relays the required information to the port operator. The device assesses, processes and communicates data to the user. Furthermore, it's a customised system that can suit each customer in terms of monitoring time, at regular intervals, whether in minutes or hours. The Reefer Runner can considerably reduce labour levels of up to 30% and reduce installation costs because of its wireless monitoring communication.

Lumel SA's Reefer Container energy monitoring solution works along the same kind of principles. The system includes in-built Wi-Fi and / or GSM modules, depending on the customer's choice. Either of these generates wireless

communication which then gives the port operator access to both up to the minute and archived information about the energy levels. For the container, a mobile measuring case is provided, made to protect against unwanted dust and water.

Meanwhile, a comprehensive measuring circuit boasts an ND 40 analyser, current transformers and the required protection devices.

For ports, today's high level of technology can encompass a wider spread of port size. “The beauty of the technology currently available is that it suits small, mid, and large terminals all the same,” concludes Al Tama. “The demand for remote reefer container monitoring truly is diverse. We see customers who already have some level of automation and are trying to fill a gap along with customers who are looking to totally overhaul their operations.”

8 Today’s digital platforms allow data to be shared among multiple parties

8 Al Tama, ORBCOMM, highlights smart containers are on a growth curve and gives an estimate of 600,000 ‘connected’ units

Captain Peter leads the way Captain Peter is the brainchild of Maersk Line. A piece of virtual technology introduced in 2019, Captain Peter uses modern methods to inform ports of upto-date information concerning reefer container voyages.

It can send a port fresh information via texts or emails regarding container temperatures and atmospheric conditions.

Also, Captain Peter provides constant updates on the ship's journey, informing the port in the event of any deviations or delays.

Once the reefer container reaches its destination, Captain Peter will also assess its final state, and send a final update to the port.

This year sees another innovation from Maersk Line, with the launch of its

Sekstant Reefer digitalisation service.

With production commencing in the first quarter of 2020, Sekstant is designed to ensure that customers do not have to keep a constant eye on reefer containers. The service is tailored to each customer's respective requirements, with notifications sent via the Sekstant gateway as and when the customer wants.

Sekstant can support 2G, 3G and 4G LTE connectivity, with each one of the data streams kept separate from the individual container lines. A basic package deal of 99 cents per container per month gives the customer a GPS location, temperature readings and alarms. There is also the option to expand the basic level package

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

Port Strategy Jan-Feb 2020.indd 45

with extra features such as G-Shock recording and remote ITI (Intelligent Trip Inspection) reporting.

Another real-time information tool comes from German container shipping firm Hamburg Süd (part of AP Moller Maersk). It introduced the Remote Container Management System for monitoring reefer container shipments, allowing ports to keep fully up to date with all the necessary information. Aspects including humidity, temperature, oxygen and carbon dioxide levels are constantly updated via the online tool which can be accessed via a computer or a Smartphone, laptop or tablet – a good solution for port operators away from the office.

JANUARY-FEBRUARY 2020 | 45

11/02/2020 09:01

PORT PLANNING: NZ LAND REVIEW

TIME TO BRING CONSISTENCY BETWEEN PILOT AND BRIDGE? Dave MacIntyre asks whether it is time for ports worldwide to look at the charts available for berthing, to ensure pilots and bridge teams are working with the same information?

This topic became a discussion point at the recent conference of the New Zealand Maritime Pilots’ Association after a presentation by Land Information NZ (LINZ). LINZ incorporates the New Zealand Hydrographic Authority which produces official nautical charts for safe navigation in New Zealand waters and certain areas of Antarctica and the South-West Pacific.

The issue which came up for debate is whether there needs to be consistency between the charts for port berths which are available locally and those which are available digitally.

There is a minimum scale for berthing charts to be compliant but apparently, some ports may not have them to that level of detail in electronic form, which means pilots revert to using charts which are available locally.

The question then is that the information being used by the ships’ bridge crews in their digital ECDIS charts (Electronic Chart Display and Information System) may not show the same detail as the information loaded on the pilots’ PPUs (Personal Pilot Units).

If so, is this an impediment to achieving the “shared mental model” that should exist when the pilot-master exchange of information occurs on the bridge?

Numerous maritime accident investigations globally have pointed the finger at accidents and incidents which have occurred with ships under pilotage, where the master and bridge team have not been fully conversant with the passage and berthing plan.

There is a minimum scale for berthing charts to be compliant but apparently, some ports may not have them to that level of detail in electronic form, which means pilots revert to using charts which are available locally Had they been so, the bridge team could have intervened and questioned the pilot when they saw a manoeuvre taking place (or an expected manoeuvre fail to take place) which contravened their understanding of how the passage plan would be executed.

Port Strategy contacted Adam Greenland, the National Hydrographer for Land Information New Zealand, who confirmed there is a minimum international scale for charts to be used for the berthing of ships in ports.

The scales of charts, both paper and Electronic Navigational Charts (ENC), are specified by international standards developed and maintained by the International Hydrographic Organisation (IHO) - IHO S-4 Regulations for International (INT) Charts and Chart Specifications of the IHO, and IHO S-57 IHO Transfer Standard for Digital Hydrographic Data, Appendix B.1, Annex A - Use of the Object Catalogue for ENC–UOC.

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The IHO is an intergovernmental consultative and technical organisation that supports safety of navigation and the protection of the marine environment. It is recognised as the competent international authority regarding hydrography and nautical charting and cooperates closely with international organisations, including the International Maritime Organization (IMO).

Mr Greenland says ports and harbours worldwide conduct routine hydrographic surveys in their area of jurisdiction, for approaches, channels and berths.

“This survey data is compiled into local charts for the use of the port users such as pilots, in addition to official charts,” he says, adding, “This is compliant with SOLAS and NZ carriage requirements. He further confirms that “there is no compliance issue in New Zealand. Pilots’ PPUs may use local charts with official charts, ships’ ECDIS may only use official charts.”

However, given that local charts may have more detail than those available to ships internationally, the issue remains as to whether the information loaded on both the ship’s ECDIS and the pilot’s PPU can be brought up to identical standards?

Mr Greenland says the IHO has recognised the benefit of both PPUs and ships’ ECDIS using official high-density bathymetry charts for navigation in pilotage waters. A new IHO product specification has been developed (S-102 Bathymetric Surface Product Specification) to create and maintain these new charts which is undergoing ship-borne trials around the world.

It seems a positive step forward to achieving the desired “shared mental model” on the bridge.

8 What impedes the “shared mental model” when the pilot-master exchange of information occurs on the bridge?

8 No compliance issues in New Zealand, says Adam Greenland

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

11/02/2020 09:01

PRODUCTS & SERVICES DIRECTORY

Taylor Machine Works designs, engineers, and manufactures more than 100 models of industrial lift equipment with lift capacities from 6,000-lbs. to 125,000-lbs.

YOU CAN DEPEND ON BIG RED!

3690 N Church Avenue Fårtoftvej 22 Louisville, MS 39339 USA 7700 Thisted, Denmark +1 662 773 3421 Tel: 0045 72 42 24 00 Neuroholding@cimbria.com Directory Jan-Feb 2020_Neuero contactus@taylorbigred.com 29/ www.cimbria.com www.taylorbigred.com

Email: neuero@neuero.de Tel: +49 5422 9 50 30 neuero.de/en/

LASE Industrielle Lasertechnik GmbH

Over a century of port industry experience. A strategic group of ‘best in breed’ people, partners and solutions, capable of delivering holistic, turn-key, advanced port-centric solutions for any brown and greenfield terminal around the world.

E LECTRIFICATION SOLUTIONS

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

G-SERIES

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

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

DEME is a world leader in the highly specialised fields of dredging, marine engineering and environmental remediation.

The company can build on more than 140 years of know-how and experience and has fostered a pioneering approach throughout its history, being a frontrunner in innovation and new technologies.

Scheldedijk 30, Haven 1025 2070 Zwijndrecht, Belgium +32 3 250 52 11 info.deme@deme-group.com Staubli directory 40x58_Stäubli 29/01/2020 www.deme-group.com

Tel: +65 9186 6846 jon.arnup@trent-global.com www.trent-global.com/

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

Port Strategy Jan-Feb 2020.indd 47

500 Seventh Avenue New York, NY, 10018, USA Tel: +1 646 908 6550 Patrick.King@jacobs.com www.jacobs.com/capabilities/ transportation

When experience really does matter!

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

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.

Jacobs has served the global port industry for 150 years. As one of the world’s largest port consultancies, our unequaled talent delivers innovation and technical excellence to solve your greatest challenges.

DEME Directory Jan 2020_DEME Directory

C RANE COMPONENTS

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

C OMPONENTS

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.

HPC is an internationally renowned consulting firm with profound experience in the global port, transport and logistics sector and a clear operations/owner’s perspective.

Container Terminal Altenwerder, Am Ballinkai 1 21129 Hamburg, Germany

D REDGING EQUIPMENT

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

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

C ARGO HANDLING SYSTEMS

NEUERO Industrietechnik GmbH

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 WASA Dredring Directory_Wasa Directory www.rohde-nielsen.dk

T: +49 (0)40 74008-0 info@hpc-hamburg.de www.hpc-hamburg.de

C ONSULTING ENGINEERS

Taylor Machine Works, Inc.

HPC Hamburg Port Consulting GmbH

D REDGING

• Portable pneumatic conveyors or grain pumps; • Pneumatic continuous barge and ship unloaders; • Mechanical continuous ship unloaders; • Mechanical loaders; Complete turnkey projects for port terminals

VIGAN Engineering s.a.

Rue de l’Industrie, 16 1400 Nivelles (Belgium) Tél.: +32 67 89 50 41 www.vigan.com info@vigan.com

C ARGO HANDLING EQUIPMENT

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

VIGAN manufactures dry agribulk materials handling systems:

C ONSULTANTS

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

B ULK HANDLING

Bedeschi S.p.A

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

JANUARY-FEBRUARY 2020 | 47

11/02/2020 09:01

PRODUCTS & SERVICES DIRECTORY

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

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

Westicker Str. 52, 59174 Kamen, Germany

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

BLOK cuts Shipping Line pollution: increases safety and productivity in Port • BLOK Spreader – lifts 4x40’ empties • BLOK Rig – automatic twistlocking • BLOK Trailer – 8 teu

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.

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

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

CAMCO Technologies NV

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

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

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

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

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

Check out our Mobile OCR!

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

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

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

P OWER TRANSMISSION

Künz GmbH Founded in 1932, Künz is now the market leader in intermodal rail-mounted gantry cranes in Europe and North America, offering innovative and efficient solutions for container handling in intermodal operation and automated stacking cranes for port and railyard operations.

I T PORT AUTOMATION

G RABS MRS Greifer GmbH

Orts GMBH Maschinenfabrik

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

Tel: 00441926611700 enquiries@blokcontainersystems.com www.blokcontainersystems.com

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

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

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

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

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

M ARINE FENDERS

info@alimak.com www.alimak.com

BLOK Container Systems Ltd

SANY offers reliable quality container handling trucks.

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

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

I NSURANCE

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

H ANDLING EQUIPMENT

E LEVATORS

Alimak Group Sweden AB

Sany Europe GmbH

I T PORT AUTOMATION

Verstegen Grijpers BV

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.

H ANDLING EQUIPMENT

G RABS

E LECTRIFICATION SOLUTIONS

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

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9 JUNE Southampton 112020 United Kingdom TO

www.certus port automation.com +31 78 6815196 The Netherlands

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

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PRODUCTS & SERVICES DIRECTORY

The Brain of Logistics

Solvo Europe B.V.

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

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

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

T RACTORS

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S PARE PARTS

TVH PARTS NV TVH supplies every part you need for heavy forklifts, reach stackers, container handlers, spreaders and terminal tractors. As a one-stop shop, the company offers a full service in spare parts and accessories for container handling equipment, with a guaranteed fast delivery at a competitive price.

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

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

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

T ERMINAL OPERATIONS SUPPORT

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

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

T ERMINAL OPERATIONS SYSTEMS

S IDELIFTER/SIDELOADER

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.

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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.

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

S PREADERS

For the latest news and analysis go to www.portstrategy.com/news Bromma Conquip Bromma is the industry’s most experienced spreader manufacturer, known worldwide for crane spreaders of exceptional reliability.

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9 JUNE Southampton 112020 United Kingdom TO

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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

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

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

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POSTSCRIPT

DOUALA DOLDRUMS

The new concession process for the Douala container terminal has descended into near farce – it is a long way away from guaranteeing the best result for the country

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There have been some high jinks in conjunction with the Douala, Cameroon container terminal concession.

Strange Fact No 1: The Government of Cameroon decides not to automatically renew the concession with Bollore/APMT, the original concession holder, but to go for an open tender. The open tender, however, proved not to be so open with an unusual result regarding the qualification to submit a detailed bid – with operators such as Bollore and APM Terminals not making it past the qualification stage while a port operator with little proven track record and no international experience (Red Sea Gateway Terminal from Saudi Arabia) was qualified.

A non-transparent and flawed qualification process is a very bad starting point to a tender and generally risks ruining the final outcome, both in terms of the competitiveness of the bids as well as the credibility of the process. This was borne out by subsequent developments.

Finally, only two companies submitted bids: Terminal Investments Limited (TIL), the terminal operating arm of the liner organisation Mediterranean Shipping Company (MSC) and DP World, the Dubai-based terminal operator.

Practically speaking, this boiled down to one neutral multi-user port operator (DP World) since TIL openly acknowledges it exists first and foremost to serve the needs of its parent, MSC. To be fair, however, TIL did submit an extremely attractive financial proposal which it is hard to imagine will be repeated in case another tender round is carried out.

And subsequently Bollore was able to effectively derail the process by questioning the credibility of the entire tender process. If the process had been better run, there is a good chance that Douala Port Authority could have avoided the suspension of the award of the contract to TIL. The irony is that Bollore – despite claiming to be the injured party - is now the primary beneficiary of this debacle. With Douala in chaos and run by an inexperienced team, an exodus of shipping lines from Douala can be expected, shifting their volumes down to Kribi where Bollore is a partner in the new container terminal operation there together with CMA CGM and China Harbour Engineering.

Strange Fact No 2: After enjoying what to all intents and purposes was a close relationship with Bollore for many years – the Government appears to have

8 Bollore-APMT have been ousted from the Douala container terminal – what next?

markedly down-scaled this relationship. What lies behind this we can only guess – it doesn’t appear to be a question of port efficiency, the usual measure for curtailing a concession, as while the Douala Container Terminal was widely recognised for not being the most efficient entity this did not appear to be an issue throughout the lifetime of the previous 15-year concession held by Bollore in partnership with APMT. The relationship with Bollore has clearly deteriorated with the recent chain of events indicative of this: 5 In September 2019 ,TIL was announced as the winner of the bid for the new concession for the Douala Container Terminal.

5 This result was, and continues to be vigorously, contested in the courts by Bollore. The action undertaken by Bollore led to the SecretaryGeneral of the Presidency requesting the Director-General of Douala port “to suspend works to finalise the terms of the (TIL) contract …until the final conclusion of the case.”

5 At the end of December 2019, the Douala International Terminal, comprising Bollore-APMT, obtained a court judgement that over-ruled the December 6 resolution by the Board of Directors of the Autonomous Port of Douala (PAD) which sought to take back control of the container terminal.

5 Despite this ruling, PAD proceeded to takeover the container terminal – ignoring the court ruling – and in a post on its Facebook page on 8 January, confirmed that the terminal was operating with “over a 1000 containers delivered and quayside operations achieving a gross productivity of 18 movements per hour.”

All this is a long way from a clear and transparent concession process – which is essential to get the best result for the country. The situation is a mess – it is clear that TIL is the winner in financial terms, it came in with a whacking offer of USD41 million upfront with USD15.5 million annually thereafter (much higher, for example, than the Bollore offer of USD1 million and USD5.2 million respectively). It is not clear, however, indeed quite to the contrary, that financial criteria alone, based on what is plainly a flawed bidding process, offers the optimum solution.

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GPCC

Athens 2020

14 OCT Athens 2020 Greece 16 TO

CALL FOR PAPERS OUT NOW! Submit your abstract for the world’s leading conference on balancing environmental challenges with economic demand.

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Abstracts should be no more than 250 words and should be sent, with a biography of the speaker, headshot photo and logo, to congress@greenport.com The deadline to submit your paper will be 28 February 2020 visit: greenport.com/congress contact: +44 1329 825335 or email: congress@greenport.com

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