shippinglogistics The Malta Independent on Sunday 25 August 2019
2
AUGUST 2019
|
shippinglogistics
Let’s send help: FIXING SHIPPING and LOGISTICS FOR HUMANITARIAN AID Delivering humanitarian aid from Point A to Point B isn’t as easy as, well, getting from Point A to Point B. Far from it. Simply put, the model for shipping aid is broken. SUSY SCHÖNEBERG, Head of flexport.org writes
M
oving a single pallet of aid materials, from food and medicine to clothing and blankets, is a profoundly complex process that can involve working with up to eighteen different transportation companies – and it’s mostly handled through a myriad of emails, spreadsheets, phone calls, or even paper documents. Think of it as a relay race, but run in
the dark, often by professionals who are extremely time and resource constrained. And we’ve got to come together to help them.
The impact of inefficiency Visibility and communications are incredible barriers for nonprofits, NGOs, and other aid organizations. There’s not enough transparency and accuracy in terms of what’s needed, where it’s needed, and how best to get it there. It’s estimated that 60% of donated items arriving at disaster sites cannot be used immediately, and often have to be destroyed or sent back. Too often, product donations are sent with the best intentions, but without confirming that the goods can actually be received. For example, sending beds when an area is still two feet underwater becomes a significant burden, especially if sufficient warehousing isn’t available. What’s more, according to the Center for Disaster Philanthropy, almost all giving is done right after a sudden disaster, but stops after 5-6 months. This stops well short of
areas in overwhelming need of long-term recovery and rebuilding, as we’ve seen in Houston after Hurricane Harvey, and Puerto Rico after Maria. That level of inefficiency is heartbreaking for many reasons. Most importantly, it’s impeding people in need from receiving critical care. At the same time, it’s hurting the ongoing effectiveness of aid organizations who, on average, spend sixty to eighty percent of their budgets on supply chain related activities.
Fixing it together The frequency of natural disasters is expected to increase by 5X over the next 50 years due to the impacts of climate change. We know that disasters disrupt supply chains – but what keeps us up at night are the communities in need. That’s why the time is now to bring the logistics industry, aid organizations, businesses, and individuals capable of helping together to fix this broken system. Flexport.org was created to help our clients, NGOs and nonprofits, and donor organizations move their
missions forward in terms of delivering humanitarian aid, increasing environmental sustainability, and demonstrating social responsibility. We’re doing so by: Offering discounted international freight services and pro bono supply chain advice; Activating our client community to match goods with the people and causes who need them; And, through our partner Carbonfund.org, a leading 501(c)(3) nonprofit climate solutions provider, enabling customers to offset up to 100% of their shipping-related carbon emissions. What’s more, we’re proud to be the first freight forwarder to deliver 100% carbon neutral aid shipments, leading the new way forward in partnering with both our international communities and our planet. Through more than a year in operation, Flexport.org has worked with hundreds of nonprofits and corporate partners, including MedShare, Americares, Airlink, Bridges to Prosperity, Good360, and customers Bombas and
ThirdLove, just to name a few. And we’ve facilitated urgent aid shipments for disasters/aid responses, including the historic flooding in Kerala, India, all of the California wildfires and several major U.S. hurricanes (including product donations from Flexport clients), and the ongoing humanitarian crisis in South Sudan – helping ensure the right materials arrive in the right places at the right times to be used effectively. As a result, last year we helped unlock 20-25% in shipping savings* for nonprofits and prevented 3.9M pounds of landfill waste** through almost 500 Flexport.org shipments. But we can’t do this alone. We need individuals and organizations to join us by donating excess products, funding humanitarian aid shipments, and shipping carbon neutral aid to those in need, from disaster relief to ongoing humanitarian efforts. Shipping aid is broken. Together, we can fix it. If you or your company would like to support any of our current disaster relief and humanitarian aid efforts with product donations, please visit www.flexport.org
shippinglogistics
|
3
AUGUST 2019
DRONE LOGISTICS and TRANSPORTATION MARKET by top brands, trends and demand 2019 to 2027
The Global Drone Logistics & Transportation Market accounted for US$ 24.58 Mn in 2018 and is expected to grow at a CAGR of 60.6% over the forecast period 2019-2027, to account for US$ 1,626.98 Mn in 2027.
F
actors including increasing developments in the e-commerce sector and rising acceptance owing to various benefits offered are significantly driving the global drone logistics & transportation market. However, lack of skilled operators and difficulties in operation are impeding the market growth. Proliferation in rural deliveries is opportunistic for the growth of the market.For instance, in 2017, Tanzanian government announced the partnership with Zipline with an objective to provide emergency on-demand access to medicines, vaccines and blood in the region. The drone logistics & transportation market is fragmented with the presence of several industries and the competitive dynamics in the market is expected to change during the upcoming years. In addition to this, various initiatives are undertaken by the governmental bodies to accelerate the drone logistics & transportation market further. For instance, The Civil Aviation Administration of China (CAAC) permitted SF Holding and JD.com to start sending packages by drone in some of the rural areas. The companies are building network not only for small drones but also for large autonomous fixed-wing planes for final delivery that will take off from small airports to ferry bulk shipments between warehouses. For instance, Ele.me, Alibaba’s food delivery arm, gained approval for testing drones in a large industrial zone. These initiatives by CAAC allow the company to serve its parcel delivery services to rural areas and inaccessible places in China. This initiative provides multiple benefits to the Asian robotics companies and thus increasing the growth of drone logistics & transportation market in the region. The Top Key players present in drone logistics & transportation market: Cheetah Software Systems, Inc., Drone Delivery Canada Corp., Flirtey, Flytrex Aviation, Ltd., Hardis Group, Infinium Robotics, PINC Solutions, Volocopter GmBH, Workhorse Group Inc., and Zipline among others.
On the basis of application, the shipping segment is leading the drone logistics & transportation market. However, the warehousing segment are anticipated to grow at a highest CAGR. The shipping application uses drones for the claims/returns of goods. These have a potential to organize claims/returns of goods in logistics industry. It enables retailers to utilize heavier duty drone to take defective products. It would assist the retailer to eradicate situations like emission and road congestion while delivering better expedient process. Currently, the global players are looking ahead to support logistic industry by
using drones as an alternative solution for delivering drones. Drones aims to deliver packages following the last mile logistics concept, which is boosting the market for shipping market. The overall drone logistics & transportation market size has been derived using both primary and secondary source. The research process begins with an exhaustive secondary research using internal and external sources to obtain qualitative and quantitative information related to the drone logistics & transportation market. It also provides the overview and forecast for the global drone logistics & transportation market based on all the
segmentation provided with respect to five major reasons such as North America, Europe, Asia-Pacific, the Middle East and Africa, and South America. Also, primary interviews were conducted with industry participants and commentators in order to validate data and analysis. The participants who typically take part in such a process include industry expert such as VPs, business development managers, market intelligence managers and national sales managers, and external consultant such as valuation experts, research analysts and key opinion leaders specializing in the vision guided robotics software industry.
4
AUGUST 2019
|
shippinglogistics
EXPR INVE PEOP
shippinglogistics
|
5
AUGUST 2019
RESS TRAILERS’ ESTMENT in PLE and SAFETY
Today, less and less employees are deciding on whether to stay or not with a company based on compensation but increasingly on other factors such as the feel-good factor the company gives them, how respected and valued they are and the opportunities for professional growth and development.
T
his was proved in a recent survey which found that employee orientation and recognition, employee development and enhancement as well as job stability are the top three values that employees find most appealing when considering applying for a post with a new company. Interestingly, remuneration ranked as the fourth quality followed by creativity and innovation, commitment to quality, customer focus and performance orientation. “At Express Trailers, people are our biggest business drivers and also our biggest investment. They know how respected and valued they are and in fact, we have a very low employee turnover,” says Franco Azzopardi, Chairman and CEO of Express Trailers.
A new state-of-the-art learning centre Express Trailers has recently completed a new state-of-the-art learning centre for the training of its employees. The LOGIC Learning Centre located within Express Trailers’ premises, represents an investment in two interjoined but dividable halls, three mini-lecture rooms which will also serve as meeting rooms, all with stateof-the-art sound engineering and multi-media video and teleconference equipment. The complex is also served with a modern canteen and outdoor chill area for users of the facilities. The LOGIC will be managed by the company’s Training Academy which Express Trailers launched last year. Speaking about this investment, Franco Azzopardi explains how this new training centre will also be open to the company’s clients and other parties who are interested to learn more about the intricate world of logistics and commerce both as a future business prospect and also from a career perspective. “As logistics leaders, we want to turn Express Trailers into a learning institution for the logistics world because we do not just hire people but we train them to become experts in the field of transport and logistics. Our people drive our business by optimising equipment, space, distance and time. They bring their experience to address all the logistics risks involved. To keep delivering our hallmark premium quality service, they need to keep getting the best training and this is what we will be delivering through our new The LOGIC Learning Centre,” said Franco Azzopardi. “We are investing substantially in this learning centre and in the training academy so our people will have all the opportunities where to clash the minds and become inspired and energized to be better in what they do, to serve our clients better. People will connect at The Logic. It is where Express Trailers’ ‘Excellence, Experience and Expertise’ maxim finds its tangible fruition,” he added. The Express Trailers Training Academy was launched last year to offer all employees continued training for them to become professionals in their respective fields and for
them to remain abreast with the latest developments in the transport and logistics market. Since then, 35 training sessions have been delivered with the participation of over 250 employees who obtained professional certification in a variety of subjects such as Incoterms and Transport Documentation, Cyber Security, Technical Training and other training related to specific departments. “Our employees are not just employees. When they start working with us, they become experts and professionals in their work and on many occasions, they are the ones passing on their acquired knowledge and experience to newer employees. In fact, more hands-on training on the job and formal training by experienced employees is being planned from this coming September. Ongoing training, sharing of experience and a persuasive attitude towards working safely form our #WeAreOrange culture and love mark.”
Investment in a more professional and safer VRT operation Besides the professional development of its people, Express Trailers, through its sister company Express VRT Ltd has also invested in a new VRT Service Centre. This VRT Centre was formerly located inside Express Trailers’ operations yard but now, it has now been relocated to larger and more modern at the top of Imgieret Road, next to the ShipLowCost central depot, just across the road from Express Trailers’ head offices. “Besides an obvious need to optimise our operative space to achieve more efficiencies, the major driver for this move was to offer a safer operative environment both for our people who manage the VRT operation and also to the many clients who use our VRT service. Our workers and customers can now enjoy a safer environment,” said Mr Azzopardi. “Safety remains a paramount aspect at all levels of Express Trailers’ operations. VRT is about ensuring that cars are safe on the roads and therefore, as professed ambassadors to Road Safety, we are proud to have entered this huge investment to offer a most modern and safe VRT testing operation,” he added. Express Trailers has been offering its VRT service for over ten years. Besides servicing normal vehicles, the Express VRT Service is also equipped to assess larger industrial vehicles as well as commercial car fleets and leased fleets. The Express VRT station is open on weekdays between 7am and 4pm and on Saturdays between 7am and 12pm. For further information one may call on 25589902. For added convenience, clients may choose to drop off their vehicle at the station and be contacted once the servicing is complete. “At Express Trailers, the three main business drivers are our space, our equipment and our people. Investing in our people and in our operations help us remain focused on our main purpose – that of adding value to our shareholders,” concluded Franco Azzopardi.
6
AUGUST 2019
|
shippinglogistics
FACING TRUMP’S TARIFFS, some companies move, change or wait Some are moving factories out of China. Others are strategically redesigning products. Some are seeking loopholes in trade law or even mislabeling where their goods originate — all with the goal of evading President Donald Trump’s sweeping tariffs on goods from China. PAUL WISEMAN, ANNE D’INNOCENZIO and JOE McDONALD report.
B
ut most of the companies that stand to be hurt by Trump's tariffs are hunkering down and waiting — waiting because they don't know when, whether or how his yearlong trade war with China will end or which other countries the president might target next. Consider Xcel Brands, a New Yorkbased company that owns such brands as Halston, Isaac Mizrahi and C. Wonder. Two years ago, it made all its clothing in China. Now it's on the move — diversifying production to Vietnam, Cambodia, Bangladesh and Canada and considering Mexico and Central America as well. By next year, it expects to have left China completely. "You have to keep moving things around," said CEO Robert D'Loren. Trump launched the world's biggest trade war since the 1930s by imposing tariffs on $250 billion in Chinese goods and threatening to tax $300 billion more. He has pursued separate battles with America's allies, too — from South Korea, Mexico and Canada to Japan and the European Union — over trade in steel, aluminum and autos. "The president has managed to pick a fight with all of our trading partners," said Rick Helfenbein, CEO of the American Apparel & Footwear Association trade group. Faced with the prospect of a forever war with America's trading partners, numerous businesses say they're delaying investment decisions and reviewing their business relationships until they have a clearer view of how Trump's trade wars might end — if they will. The paralysis itself is inflicting its own damage worldwide. Foreign direct investment, including cross-border mergers and new factories, fell in 2018 for a third straight year to its lowest point since the recession year of 2009, the United Nations reports. The International Monetary Fund expects world trade to slow in 2019 for a second straight year. Companies that depend on targeted imports face an agonizing decision: Can they press their foreign suppliers to cut their prices? Could they absorb the higher costs themselves? Or should they pass them on to their customers in the form of price increases — and risk losing business? Most companies weren't prepared for the trade disruptions. For decades, most major countries, far from erecting trade barriers, tore them down. Some companies weren't even set up internally to analyze tariffs and calculate how to minimize the impact on their business. "The one thing that businesses hate is
instability and not being able to plan," said Rosemary Coates, president of Blue Silk Consulting, which advises companies on managing their global supply chains. "You're getting chased around the world by (trade) policy with no advance warning." Seeking relief, here is what some companies are doing:
Shifting production Shifting to other countries could slash Xcel Brands' labor costs in half. This is crucial, D'Loren said, because fashion companies have little ability to raise prices and would have to absorb the cost of higher import taxes. To be sure, the trend of manufacturers gradually leaving China predates Trump's trade wars. With wages and other costs in China rising, companies were already shifting toward lower-wage countries, from Vietnam to Mexico. Since 2017, 20 publicly traded Chinese companies have announced plans to invest in Vietnam, according to China's Securities Times newspaper, raising the total over the past decade to more than 60. A few have considered shifting production to the United States. Hurt by Trump tariffs on the metals used to make brass, Coins 4 U, which markets coins for awards and promotions, last year moved production from China, where it had been manufacturing since its founding in 2013, to Lake Ronkonkoma, New York. "Our costs didn't rise too much, about 10%," said Sam Carter, sales manager for the company, based in Cheyenne, Wyoming. An unexpected plus, Carter said, is that some American customers prefer to buy products made in the United States. But it isn't simple for some companies to completely abandon China, where specialized suppliers cluster in manufacturing centers and make it convenient for factories to obtain parts when they need them. "You think that moving production was fairly straightforward, but I can't tell you how difficult it is," D'Loren said. Refining the logistics can take a year to 18 months. If the trade war was resolved, D'Loren said, he would consider returning some of his production to China. Trump has asserted that his tariffs have caused an exodus of companies out of China. That's a drastic exaggeration, analysts say. And some companies have moved export-oriented operations out of China even while expanding within the country to serve Chinese customers. "People in the Trump administration think you can just snap your fingers and
move to other countries," said Coates, the consultant. Over the past five years, Columbia Sportswear has cut its manufacturing presence in China by more than 60%. But some products can't be made elsewhere, the company says, because they're highly specialized and dependent on significant investments in tooling, machinery and personnel training. Columbia's Sorel Style shoe, for example, features a hidden wedge heel that requires proprietary tooling and machinery. Moving its remaining production out of China, Columbia says, would cost at least $3 million in machinery, require it to hire and train a new workforce and delay production at least a year. Vietnam is enjoying an investment boom as companies seek alternatives to China. But Vietnam's population is about 97 million — fewer than some individual Chinese provinces — and wouldn't be able to meet demand. "The infrastructure is just being developed," Coates said. "The factories are being overwhelmed. They can't take on additional projects."
Getting creative Increasingly, clothing and shoe companies are trying to design their way out of paying tariffs. Some have used a strategy called "tariff engineering." It involves altering products just enough to change how they're classified under the U.S. International Trade Commission's Harmonized Tariff Schedule to evade or reduce import taxes. Trump's steep tariffs on China — and the threat of new ones — have raised the stakes. A result is that some clothing design teams are taking the tariffs into consideration as they sketch pockets, say, or design work boots, said Stephen Lamar of the American Apparel & Footwear Association. Over the past year, Tom Gould, a trade law specialist at Sandler, Travis & Rosenberg, P.A., said he's seen an uptick in clients seeking to engineer their way out of punitive tariffs. Sometimes he helps retailers and manufacturers reduce their import taxes by finding errors in how certain goods are classified in the tariff schedule. Small changes can make a big difference. Add drawstrings or pockets below the waist to a blouse and the import tax drops from 15.4% to 8.1% for a cotton version and from 26.9% to 16% for one made of polyester. U.S.-based companies are also scouring customs laws for loopholes. Increasingly, e-commerce companies are looking to
ship directly to U.S. homes from warehouses in Mexico, Hong Kong, and Canada. Federal regulations allow U.S. based companies to send packages worth less than $800 to American homes from countries like Mexico and pay no tariffs. "People are looking at a variety of new or already established legal ways to reduce tariffs," said Lamar of the American Apparel & Footwear Association. Some are trying not-so-legitimate means, too. Chinese exporters have tried to evade U.S. tariffs by sending honey, steel, ceramic tiles and other goods through Vietnam and relabeling them as Vietnamese, according to the country's customs agency. The Vietnamese customs agency responded last month by announcing that it would increase penalties for such "country of origin fraud."
Waiting it out The standoff over Beijing's combative technology policies has dragged on for more than a year and consumed 11 rounds of negotiations. Even if the two sides forge an agreement, it's far from clear that it would stick. The uncertainty is chilling investment. "Companies don't like to inject a lot of change in their operations," said Brian Dunch, leader of global trade services at the consultancy PwC. "Change creates inefficiencies." A survey by the American Chamber of Commerce in South China found that U.S. manufacturers had suspended nearly half their investment projects valued above $250 million because of uncertainty in U.S.-China trade relations. Some companies worry that there may be no way out of Trump's trade wars. Disputes that seemed to have been resolved can suddenly flare up again. On May 13, for example, GoPro, the action-camera maker based in San Mateo, California, reiterated its plan to evade Trump's tariffs by moving its production of U.S.-bound cameras from China to Mexico. Yet before the month was out, Trump had threatened to impose heavy tariffs on Mexican imports — to pressure Mexico to stop the flow of Central American migrants to the southern U.S. border. Though Trump later dropped that threat, the incident highlighted the way the mercurial president can upend the rules of trade on a whim. Likewise, Vietnam's status as a tariff safe haven may prove fleeting. "Vietnam takes advantage of us even worse than China," Trump warned in an interview last month.
shippinglogistics
|
7
AUGUST 2019
What AMAZON’s decision to RETRAIN A THIRD of its EMPLOYEES means for the FUTURE OF WORK Amazon’s announcement that it will invest US$700 million to retrain 100,000 employees – a third of its U.S. workforce – in new technologies is the latest reminder that the much-heralded future of work is well underway. SCOTT F. LATHAM writes
P
olicymakers, analysts and scholars trying to discern the retailer’s motives and objectives chalked it up to a public relations move or the natural result of a tight labor market. Others deemed it standard retraining and investment. Lost in the reaction, however, is what it means for the rest of us workers. As an expert in technology disruption, I believe the main message in Amazon’s announcement is clear and indisputable: The jobs of tomorrow will require at least some competency in the STEM fields – science, technology, engineering and math. But do we want to leave it to companies like Amazon to take the lead in making sure we’re ready?
Amazon’s rationale Amazon offered, in painstaking detail, its rationale for the retraining initiative. Drawing on its own employment data, as well as publicly available labor data, Amazon revealed the fastestgrowing technical and nontechnical jobs at the company over the past five years. The technical jobs were what you might expect, such as data scientist and network development engineer. What intrigued me most, however, were the job descriptions of the supposedly non-technical
Alexa welcomes Amazon customers to the future
Amazon plans to retrain 100,000 employees in new technologies positions it highlighted, such as program manager, business analyst and marketing professional. These jobs now require a breathtaking degree of fluency in STEM skills. Ten years ago, for example, a young individual might have secured a job at an Amazon shipping facility based on physical skills alone or in human resources with a simple undergraduate degree. Today, those same jobs require understanding how to work with a robot to move around packages efficiently or use artificial intelligence to sift through resumes.
No industry is immune The blurring of technical and non-technical jobs signals a dramatic shift for the entire
workforce and will change the basic structure and nature of work. In the past, the narrative was that STEM jobs offered a more lucrative career path. Now, every job is a STEM job, from brick laying and nursing to radiology and house painting. You will be hard pressed to find a job in the coming decades that won’t work with a robot or AI or even have one as a manager. One of the fastest-growing areas, in fact, is human robot interaction and the development of collaborative robots known as co-bots. The point being, humans lucky enough to avoid getting displaced by an AI-powered robot will still need to demonstrate the ability to work alongside or under it.
As with past industrial revolutions, the future of work – also known as “industry 4.0” – is being driven by technology disruption in the form of automation, big data, internet of things, artificial intelligence, blockchain, drones and 5G. Business leaders anticipate that a skills mismatch will rapidly emerge in the next few years, particularly relative to automation and artificial intelligence. While the application of these technologies will be more pronounced in certain sectors, one thing is certain: No industry will be immune. Technical fluency is now a baseline qualification, and those without it risk being left behind.
and colleges deliver degrees at a glacial pace. The average completion time for a bachelor degree is five years. That’s too slow. Imagine a young computer science major entering a college this fall and graduating in 2024 – at which point researchers expect AI to be capable of coding in complex computer languages like Python. By the time she graduates, not only will she be competing against humans for jobs, but she’ll also be going up against a more efficient and cheaper AI bot. Higher education needs to become more adaptive and innovative. If it doesn’t, industry will continue to take the lead on its own.
The role of higher ed
Retraining the future
Who should be responsible for ensuring the workforce is prepared for these challenges? Amazon’s answer, essentially, is “we’ll take care of it.” One of the more telling aspects of Amazon’s announcement was that it plans to use its own programs to retrain employees, such as Amazon Technical Academy and Machine Learning University. There was no mention of universities and colleges. Other companies, such as Google, similarly say they are relying on partners outside of traditional academia to support their training needs. While corporate universities are hardly a new development, I believe the coming labor market challenge requires higher education to get in the game. The problem is, at present, higher education is designed for the last industrial revolution, not the current one. Universities
The question then becomes, do we want corporate training programs to be the basis of participation in the future of work and the only way for workers to get up to speed? With well-founded concerns that organizations like Amazon represent a growing monopolistic threat, I don’t think we want these organizations to dominate education as well. Or to focus retraining efforts in ways that are likely to only suit a company’s short-term business needs. Industry should play a part, but higher education needs to be the foundation. Scott F. Latham is an Associate Professor of Strategic Management, University of Massachusetts Lowell This article was published first in The Conversation theconversation.com/eu
8
AUGUST 2019
|
shippinglogistics
MALTESE COMPANY expanding Latvia container terminal, LOGISTICS HUB OPERATIONS Hili Company is investing heavily to expand operations at its container terminal and logistics hub facilities in Riga, the Latvian capital. NEIL CAMILLERI reports
D
uring a recent press trip to the facilities it was explained that the group is increasing the size of the quay at its Baltic Container Terminal. The facility will also be getting a new ship-to-shore crane and the warehousing facilities there are also being expanded. The company acquired the Riga facility in 1996 and runs it through its subsidiary Mariner. CEO Edward Hili and director Gerard Sammut explained that BCT handles two thirds of all
container cargo in Latvia. The main market is Russia but the facility also serves other eastern European countries and is also regularly used by NATO to ferry military assets in and out of the region. The majority of cargo unloaded at BCT is sent to its final destination by truck but the facility is also served by a railroad and is equipped with a number of gantry cranes used to load containers onto train trucks. The quay, currently 450 metres long, is set to be extended by 50 metres and eventually by another 200 metres. At full length, the quay will be able to accommodate two large vessels simultaneously. This is significant because container vessels are getting larger in size, Edward Hili explained. Work on the quay extension project is expected to start in 2020. The works will include dredging of the river floor to reach a depth of 14 metres. The container yard area will also be extended by another 8,000 ground slots. The facility currently has four ship-to-shore (STS) cranes but a fifth one is on order. This will be the second crane of this size at the facility, and will be able to
CEO Edward Hili
service wider vessels. The new crane costs around €6 million. Works are currently underway on a new 11,000 square metre warehousing block. The facility is fully insulated and heated and is equipped with railway ramp and connected to railway system. All existing warehousing is leased out and parts of the new warehouse are already prebooked. Total warehousing at BCT will be 42,000 square metres, once the ongoing project is completed. Over recent years we have seen quite significant growth in volumes at BCT. We are handling around 300,000 TEUs a
year and we’re seeing the need to undertake the next phase of development of the terminal, which will also allow us to handle larger vessels. The €30 million investment incorporates the warehousing, quay extension and the purchase of a new crane. It will be completed over the next three years or so,” Hili said. It was explained that BCT uses the most advanced cargo terminal system available worldwide, with a real-time system that monitors ship, truck and container movements. Mariner also runs a container terminal in Venice – the Terminal Intermodale Venezia – in a joint venture with MSC. It is today the leading container terminal in Venice, handling over 300,000 TEUs (twenty foot container equivalent). This terminal will also be acquiring an additional mobile harbour crane and will be updating its software system. Another subsidiary, Mariner Logistics, owns and operates over 65,000 square metres of covered warehousing in Latvia and Italy. The group recently acquired the Elipse facility in Riga, which covers an area of over 30,000 square metres. It comprises of 26,950 square metres of covered warehousing,
including refrigeration facilities, and 4,000 metres of office space, all of which are rented out to third parties. The company is in the process of adding additional warehousing space. The facility, strategically located close to Riga International Airport, has access roads that are directly linked to the Baltic highway network. Edward Hili explained that the warehouse is split into three, each with 12,000 to 13,000 pallet spaces. Each warehouse has gates on both sides to receive and dispatch cargo. There are also foundations for another 10,000 square metres of warehousing, Hili said, adding that there is strong demand for the extra space. Hili Energy, another of the group’s companies, is currently investing in 2.4MW solar farm in Benghajsa, having entered into a 20-year energy selling agreement with Enemalta. It is also investing in a 1.0MW biomass gasification cogeneration plant in Croatia – the facility will generate energy and heat from woodchips – with plans for two or possibly three more such facilities in the country. The Malta solar farm costs 4 million euro and the Croatia facilities cost around €6 million each. The company is also eyeing possible wind technology investments in the future, Hili explained. Hili Company also owns Hili Twenty Two, a real estate company owning a number of properties internationally, Lady Gio, a 47-metre luxury yacht offering scheduled excursions around the Maltese Islands, and operates the Manoel Island Yacht Yard and the Manoel Island Yacth Marina in a joint venture. However, the focus, Edward Hili explained, will remain on the terminal sector, which is the company’s core business.