Kalmar around the world 1 2011

CUSTOMER MAGAZINE

ISSUE 1 | 2011

Vietnam prepares for the future with Kalmar Zero Emission RTG™ 24

8

The Navis acquisition enchances Cargotec’s total solutions offering

10

Introducing the ‘G’ Generation: A new era in cargo handling

20

Refined strategy moves Cargotec ahead

Contents 03 Editorial 04 Facts and figures 05 Lessons learned in China: Pekka Vauramo 06 News 08 Three Angles on the Navis acquisition

14

10 The next generation of counterbalance equipment is here 14 Rebuilding Freeport

Modern container handling

16 Modern container handling in Santos, Brazil 20 Global trends set the stage for Cargotec’s refined strategy 24 Vietnamese port goes greener with Kalmar Zero Emission RTG™ 28 Hybrid development benefits from joint driving power

Santos Brasil is prepared to handle more containers using state-of-the-art technology.

30 Customised solutions facilitate workflow in Spain

16

34 Supporting sustainability in day-to-day work 35 Insider column: Adrenaline rush

20

24

Kalmar around the world is Cargotec’s customer magazine with a distribution of approximately 14,000 issues. Publisher: Cargotec Corporation, Sörnäisten rantatie 23, FI-00501 Helsinki, Finland. Editor: Elizabeth Gibson (elizabeth.gibson@cargotec.com).

Layout and production: Maggie/Zeeland. Printed by PunaMusta, Finland. The opinions expressed by the authors or individuals interviewed do not necessarily represent the views of Cargotec.

Foreword Refined strategy brings customers, new solutions to the foreground

Cargotec reader survey

Answer and enter to win an iPad2!

We want to hear what you think about Cargotec’s customer magazines.

Please go to www. cargotec.com/survey-en and let us know your opinion.

By completing a short survey, you’ll be automatically entered in a raffle drawing to win an iPad2.

2010 was a year of new beginnings for Cargotec, and it is encouraging to see a tide of positive momentum rolling through many of the cargo and load-handling segments we serve. Although not all industries and market areas have fully recovered, Cargotec’s Industrial and Terminal business has picked up significantly compared to a year ago.

In the autumn, Cargotec refined its strategy underlining the importance of emerging markets, services, internal clarity, and – most importantly – the customer (pg. 20). To enhance our ability to serve customers and build withstanding relationships with them, the Europe, Middle East and Africa (EMEA) region reorganised its business by establishing a management structure in each country.

These changes are already starting to bear fruit starting within our industrial business segment, namely loader cranes, truck-mounted forklifts and demountables, especially in Scandinavian countries, Germany and France, where construction and infrastructure spending has increased. The terminal business has also perked up with year-on-year global container handling volumes increasing 14.5 percent in 2010.

This has put many large port projects back on the table, allowing Cargotec to show its expertise as an experienced provider of total port solutions, including automated terminals.

Our success going forward is dependent on our ability to be customer-focused. As part of our strategy, we are already looking for new ways to enhance our customers’ businesses. The recent acquisition of Navis, a terminal operating system provider, reinforces Cargotec’s desire to be more than just an equipment supplier (pg. 8).

However, improving our products is just as important, as seen with the launch of the Kalmar DCG forklift – the first in a new generation of counterbalance equipment (pg.

10). Eco-efficiency is also a key factor in our customers’ operations. The Kalmar Zero Emission RTG™ is attractive to terminals wanting to drastically cut emission and noise levels (pg. 24).

There are many factors that have attributed to Cargotec’s current position as a global market leader in cargo and load handling solutions. The most well-known and appreciated by customers the world-over is our extensive service network. ‘Global presence, local service’ is one of Cargotec’s three company values. It’s a part of who we are, and how we’ll continue to be successful.

Harald de Graaf Executive Vice President, EMEA Cargotec’s expertise in container and heavy load handling is represented in the global marketplace by the wide range of Kalmar solutions. This includes ship-to-shore cranes, yard cranes, shuttle and straddle carriers, reachstackers, empty container handlers, terminal tractors, log stackers, forklifts and automation. One in four container movements around the globe is handled by a Kalmar machine. www.kalmarind.com

FACTS & FIGURES

About Cargotec

Sales by reporting segment 1–3/2011, % Industrial & Terminal 58% (57%)

Cargotec improves the efficiency of cargo flows on land and at sea – wherever cargo is on the move.

Cargotec’s daughter brands, Hiab, Kalmar and MacGregor, are recognised leaders in cargo and load-handling solutions around the world.

Cargotec’s global network is positioned close to customers and offers extensive services that ensure the continuous, reliable and sustainable performance of equipment.

• Equipment 70% (64%) • Services 30% (36%)

Marine 42% (43%) • Equipment 88% (84%) • Services 12% (16%)

Sales by geographical segment 1–3/2011, % EMEA 41% (42%)

APAC 41% (40%)

The company employs approximately 10,500 people.

Americas 18% (18%)

www.cargotec.com Key figures in January–March 2011

Q1 2011

Q1/2010

2010

2009

819

598

2,729

1,828

2,373

2,239

2,356

2,149

Sales, MEUR

763

555

2,575

2,581

Operating profit, MEUR

50.6

13.5

131.4

0.3

6.6

2.4

5.1

0.0

Income before taxes, MEUR

46.4

6.8

101.4

-26.7

Cash flow from operations, MEUR

36.2

46.5

292.9

289.7

Interest-bearing net debt, MEUR

335

336

171

335

Net income for the period, MEUR

36.2

9.8

78.0

7.1

Earnings per share, EUR

0.59

0.13

1.21

0.05

Orders received, MEUR Order book, MEUR

Operating profit margin, %

4

KALMAR AROUND THE WORLD

WHAT HAVE I LEARNED?

Lessons learned in China Cargotec’s Pekka Vauramo, Chief Operating Officer and Deputy to the CEO, moved from his native Finland to Hong Kong at the beginning this year to help drive the company’s development initiatives in the Asia-Pacific region. Kalmar around the world recently caught up with him to see how it’s going so far.

KAW: Asia’s – especially China’s – rapid growth has amazed people all over the world. What have you learned about business in Asia so far?

PV: Asia’s rapid growth rate has certainly surprised us. Growth rates remain mere figures until you visit the region and compare the present situation with that of 10 or 15 years ago. The pace of change has been incredible, especially in China.

If we seek growth in Asia, we have to act in time. We have to use proactive recruiting methods. I would like to say to those coming here that China is no longer a low-cost country. You have to pay the going rate for top talent, regardless of the nationality indicated on their passport.

KAW: How would you describe the business opportunities and challenges that China offers Cargotec?

PV: China offers ample business opportunities, but competition is tough. There are also local competitors, and all those coming from outside China compete with them as well. It is not easy for anyone to do business here – China has really been discovered.

KAW: Where is Cargotec heading to when it comes to Asian markets?

PV: Companies coming from outside China often pay attention to the area along the coast with the most vigorous growth. The average annual growth of the economy is 8 to 10 percent, but in some parts of the country the figure can be considerably higher – or lower.

It is easy to forget that inland areas also experience growth, and that the growth rate can be very high there, too. It is important for us to familiarise ourselves with the local business life and get access to the riversides and the railway network.

We are examining these areas more closely. We have employed more than a thousand people in China. In addition, we have reliable partners.

Delivery chains are becoming increasingly important in China. They are currently being built as part of business and logistic solutions. We want to be involved in this, and we will have to keep our own sales and service network up to the challenge.

KAW: Why is understanding local conditions and challenges so important in China?

PV: It is absolutely necessary to respect and follow local customs. For example, we use no language other than Chinese in China when we agree on important matters. I think that, as Europeans, we should encourage our local personnel here to make decisions. At the same time, we must ensure that they have the support of the headquarters. In this way, we can also show our partners that although we come from a different country and culture, we are doing business in earnest.

KALMAR AROUND THE WORLD

5

NEWS

Cargotec strengthens foothold in Latin America

tions with many unique features that contribute to reliable performance. For example, PAG’s STS crane is capable of operating on a quay with

Cargotec recently commissioned two Kalmar ship-

limited allowable wheel loads. In addition, the

to-shore (STS) cranes for customers in Latin Amer-

unit is equipped for tropical conditions, includ-

ica. Handover of the crane to Port de la Guade-

ing wind speeds of up to 288 km/h.

loupe (PAG) in Guadeloupe occurred in December

Also this year, Cargotec commissioned

2010, and the unit for Pinfra’s subsidiary, Infra-

two 6+1 wide and 1-over-5 high Kalmar E-One2

structura Portuaria Mexicana (IPM), in Altamira,

rubber-tyred gantry cranes and started the

Mexico, was delivered at the end of March 2011.

refurbishment of two existing STSs for IPM’s

With container volumes steadily increasing,

Altamira operations. The customer deploys

the new Kalmar STS cranes will help PAG and IPM

many Kalmar container handlers thanks to

expand their quayside handling capabilities. Both are

their reliability and Cargotec’s guarantee of

engineered according to high technical specifica-

fast, local support.

Automated straddle carrier facility wins Terminal of the Year Patrick Container Ports, in Brisbane, Australia, won Terminal of the Year at the 15th annual Lloyd’s

Kalmar STS crane in Guadeloupe.

Manila North Harbour boosts capacity with Kalmar forklifts

List DCN Shipping and Maritime Industry awards, in November 2010.

Patrick is the world’s first and only free-ranging robotic straddle carrier terminal, pioneered by

Manila North Harbour Port Inc. (MNHPI) recently

Cargotec together with Patrick terminal operations and Patrick Automation. Patrick’s unmanned

purchased four Kalmar forklifts from Cargotec

fleet consists of 27 fully-automated Kalmar EDRIVE® straddle carriers.

Asia Ltd in order to modernise port operations and “The award recognises

the innovative technology

cargo handling at its domestic piers.

For the past three years, containerised

developed in partnership with

cargoes in the Philippines have increased annually

Patrick’s subsidiaries and

at about 3.5 percent. MNHPI is the busiest hub in

Cargotec,” says Paul Garaty,

the country, handling approximately 82 percent of

Divisional General Manager of

these containerised cargoes.

Patrick Container Ports.

MNHPI is committed to providing the best terminal services by using the best equipment available in the industry. “This is critical as we have

Senior leaders from Patrick Container Ports and Cargotec accepted the award.

seen a steady growth of container load volumes at the domestic ports,” says Renato Castillo, President and CEO of MNHPI.

Eco-friendly port cranes to Colombia Cargotec and Sociedad Portuaria Regional de Cartagena, a leading South American terminal operator, entered into an agreement worth approximately EUR 40 million for the delivery of two Kalmar ship-to-shore (STS) cranes and 24 Kalmar E-One2 Zero Emission™ rubber-tyred gantry (RTG) cranes.

The cranes, the first of their kind in South America, will be delivered in the second quarter of 2012.

The new equipment will help the customer handle the rising volume of containers at its terminals in an eco-efficient way: The Kalmar Super Post Panamax STS cranes feature optimised hoisting speeds requiring minimal energy consumption. The Zero Emission™ RTG cranes receive electricity via an automated busbar connection.

Named Best Port of the Caribbean five times by the Caribbean Shipping Association, the port of Cartagena operates currently with one of the largest Kalmar RTG fleets globally. The port is expanding its capacity to accommodate an annual throughput of 4.5 million TEU.

6

KALMAR AROUND THE WORLD

Handover ceremony at MNHPI.

Autoshuttle™ in action at the Tampere competence and technology centre

Cargotec lends a hand

Cargotec’s competence and technology centre, located in Tampere, Finland, is an impressive showroom of Cargotec products. The centre features actual cargo handling equipment in a simulated port facility, where the visitors can witness the newest Cargotec solutions in action, such as a Kalmar Autoshuttle™.

The Kalmar Autoshuttle™ is an automated shuttle carrier, which streamlines vessel-to-yard-operations and eliminates traffic bottlenecks.

It decouples the work cycles of, for example, STS and automatic stacking cranes, which means that all equipment can work independently at their optimal operating speed and maximum productivity.

The competence and technology centre serves equally as a permanent research and development testing site. The RDE (research, development and engineering) functions at the centre support Cargotec’s leading position as a forerunner in container handling innovations. The centre was inaugurated

Help in Japan

in early 2011. Please contact your local sales representative for more Japan’s March tsunami had devastating effects on the Fukushima

information.

Kalmar Autoshuttle™

Daiichi nuclear plant. Cargotec played an active role in the area’s recovery process. A fire department rescue team used two special fire trucks equipped with a Hiab XS 077 loader crane and a Hiab Multilift demountable. Both solutions helped draw water from the sea for cooling the nuclear power plant. The loader crane was used to pump ocean water while the demountable was needed to reel in the hose used.

A rescue operation in Chile A Hiab XS 215 crane was used in test runs of the PHOTO ©Aliosha Marquez / AP Photo / Lehtikuva

A new range of Kalmar forklifts

capsule used in the rescue operation

CeMAT 2011 saw the launch of a range of Kalmar ‘F’-series heavy forklifts.

in Chile that saved

The industry event in Hannover, Germany was the perfect location to intro-

the lives of 33

duce four new models with

miners trapped

The new Kalmar DCF220

lift capacities spanning from

7,000 metres

18 to 25 tonnes. The DCF180-

underground. All

250 range promises cleaner

men were brought

engines with better fuel effi-

to the surface on

ciency, a new hydraulic sys-

13 October 2010

tem, an ergonomic cabin and

following 69 days

a state-of-the-art diagnos-

in the mine.

tic system – all lowering the total cost of ownership.

KALMAR AROUND THE WORLD

7

Three Angles

Three Angles on the

Navis acquisition How does the acquisition of Navis affect Cargotec, Navis and their customers?

Three leaders provide their views.

Mikael Mäkinen, Cargotec President and CEO KAW: Why did Cargotec acquire Navis?

MM: To maintain its strong position in the global market, Cargotec saw the need to grow vertically, from equipment supplier to total solution supplier.”

KAW: How will Cargotec benefit from the acquisition?

MM: It is vital to understand customer needs in the whole value chain in marine and inland terminals as well as to have the ability to provide solutions for those needs. This acquisition combines Navis’ flexible and scalable TOS software with Cargotec’s leading cargo and load handling equipment and services, allowing us to offer integrated solutions and better deliver turnkey operations to customers.

KAW: How will customers and partners benefit?

1

MM: Modern terminals require integrated solutions between terminal operating system and equipment intelligence. With joint forces, Cargotec and Navis will create more value for customers’ businesses through improved terminal operations. No other equipment supplier has joined forces with a TOS provider.

KAW: How will this affect the competitiveness of Cargotec?

MM: Cargotec will become the market leading provider of transportation and logistics solutions, further strengthening its ability to provide total solutions for customers. Together, Cargotec and Navis will be the leading terminal system integrator in the market.

This year, Cargotec completed its acquisition of terminal operating system (TOS) provider Navis. Navis is a US-based software company that makes the leading TOS system, currently used by marine container terminals, distribution centres, and rail yards worldwide.

8

KALMAR AROUND THE WORLD

KAW: What does “terminal integration” mean in practice?

BW: Terminal integration means the ability to take all the different systems, enabling technologies and operational processes that are involved in terminal operations, and make them work together seamlessly in real-time.

This allows terminal operators to utilise the data generated in these systems to coordinate processes and optimise operations.

2

Bill Walsh, President and CEO, Navis

KAW: What sort of integration opportunities are there between Navis and Cargotec solutions?

BW: Currently, many terminals are looking at how they can reduce their costs and improve operations with automated solutions. As we look at the increased number of automated terminals that our customers are planning to build, there will be excellent opportunities between the Navis TOS and the different types of automated equipment that Cargotec makes and sells.

KAW: How can Navis bring Cargotec closer to customers?

BW: Navis and Cargotec have many of the same customers, but deal with different parts of the customer’s organisation – it will be less about Navis bringing Cargotec closer to customers and more about coming together to provide increased value to our joint customers from a complete business perspective.

KAW: What new capabilities does Navis bring to Cargotec customers and vice versa?

BW: Navis will provide deep domain expertise in optimising terminal operations with software solutions, and Cargotec can help Navis with their expertise in the design of terminal equipment.

KAW: How does usage differ in each customer segment?

BW: The Navis TOS has evolved into a system that can be configured by the customer directly, without incurring expensive customisation costs. All customer segments use the system to plan, schedule, control, visualise, execute and optimise operations in large supply chain nodes. Yet each individual client can alter the usage and behaviour of the system in order to differentiate their business from competitors.

Knud Vang Nielsen, Managing Director of Oslo Container Terminal AS KAW: What do you expect from your suppliers?

Cargotec in your career?

KVN: I started in the Port of Aarhus in Denmark, in 1980. Already when I arrived at Aarhus, Cargotec was already supplying its Kalmar equipment. They used Aarhus as a test site. I was personally involved in a lot of the testing and development. So I have had a long and good relationship with Cargotec.

For a number of years I was working both in Oslo and Aarhus, but now I am focusing just on Oslo.

KAW: What is your target for the Oslo terminal?

KVN: We are about to start a new development project in Oslo together with the Port Authority. There will be a lot of challenges to be solved. Using an automated gate system might be one of the things we consider here in Oslo to improve efficiency. This is an example of where Cargotec’s acquisition of Navis might help.

3

KVN: I have been following Cargotec for many years. They have become a much larger, broader supplier. Therefore I see the Navis acquisition as a natural, advantageous step.

I’ve experienced the situation where we had bought all the best options from suppliers, but the parts were not interacting as expected. It was my problem to get it all to work. As a customer, I want to have a working solution.

The customer knows the desired end result, but they don’t necessarily want to know how to get there.

KAW: Do you think this is going to be more common in terminals around the world, adapting to automation?

KVN: Most definitely, but this is a conservative industry. In some regions, automation may not yet make sense financially when personnel costs are still relatively low. In other regions, automation is critical because adding just one person to the workforce can be too much.

KAW: What is your history in the maritime industry and how have you worked with

KALMAR AROUND THE WORLD

9

INNOVATION

The next generation is here

TEXT Risto Pakarinen

Building on old success – even redefining the things that made you successful in the first place – can be one of the most difficult things in life, and business. It is also the very thing that makes people and companies successful: The constant drive to get better.

Cargotec is on the verge of doing just that as Cargotec prepares to launch its new ‘G’ generation of Kalmar counterbalance equipment that builds on its past success, adding new features and redesigns to make them even better.

“We are continuously working to improve the efficiency and economy of our customers’ operations. The new G generation of Kalmar counterbalance equipment is the next step in this process. We have enhanced the cost-efficiency, quality and productivity of our counterbalance machines, resulting in better performance and greater savings,” says Thomas Malmborg, Vice President, Forklift Trucks.

“We recognise the fact that, for example, our previous cabin was the best on the market, so our challenge was really trying to beat ourselves,” he adds.

Signals from the market

The new generation is the fourth – “we started with ‘D’ once upon a time” – in line, and according to Malmborg, one that has been under development for about three years, and will eventually cover all Kalmar forklifts, empty and loaded container handlers, reachstackers, and logstackers.

10

KALMAR AROUND THE WORLD

The DCG90-180 range of forklifts is the first to enter the new ‘G’ generation of Kalmar counterbalance equipment.

KALMAR AROUND THE WORLD

11

The new G generation of Kalmar counterbalance equipment offers significant improvements in ergonomics and driver visibility. The new EGO cabin design is completely different, compared to the previous model.

Kalmar’s new counterbalance equipment enters a new era.

“The existing product was obviously the starting point for our development work. Then we conducted extensive market research, discussed with our customers, and gathered other information to make sure we understood the development needs,” Malmborg says.

“It’s not like we’ve been dreaming all these new features up, but, instead, we have clear signals from the market,” he adds.

One of the most notable changes between the previous generation and the G generation is the most visible one. The driver’s cabin has been redesigned to meet the drivers’ ergonomics needs.

“The new cabin design is completely different from the previous one, which was about ten years old.

The new EGO cabin.

There are huge improvements to ergonomics and the visibility is better,” Malmborg says of the new EGO cabin.

“The ergonomics has been in focus; we really wanted to make it an enjoyable experience for the drivers. Everybody wants to have a comfortable work place, and we wanted to make sure that the people driving our forklifts can sit relaxed, and feel good, when they’re at work. Actually, they should feel

12

KALMAR AROUND THE WORLD

rested after their shift,” Malmborg says.

The cabin is a common denominator for all counterbalance products that fall under the G generation, as is the new electronic steering system, which will have the same look and feel for all products.

“The red thread that connects everything is our new human-machine interface (HMI), which means that you’ll have the same interface, regardless of which Kalmar vehicle you sit in. The menu looks the same, and it works in the same way,” says Malmborg.

“It’s simple, intuitive, and obvious from the start. There are no complicated buttons, and the intelligent system will feed the driver exactly the information that is needed at that moment.”

Something for everybody

At the same time, Malmborg is careful to note that the new system will not decrease the importance of drivers’ skills.

“The driver is still in control, and the same common electrical control system will be used in all G generation vehicles so the driver can easily switch from one to another without having to re-learn the system,” he says.

Other new features include a new hydraulics system, which is a load sensing system. The cooling fan is also hydraulically driven and temperature controlled. As an option, the fan rotation can be switched to blow out dust from the radiator.

Fuel efficiency has also been improved, the engine’s noise levels have been reduced, and the emissions lowered.

“Everybody finds something to like in G generation. The drivers will enjoy the new cabin and the control system, the service people will like the accessibility, and management will certainly be happy with the fuel efficiency and more productive employees,” says Malmborg.

Introducing the first G-series Kalmar forklifts

The G generation will gradually take over from the previous generation, which has been available for almost a decade.

Many things have changed in those ten years, on both supply and demand sides of the equation. In part, technological advances have made it possible for Cargotec to create new solutions that weren’t possible during the development of the F generation. On the other hand, customers also have new demands.

Fuel efficiency “The world changes, and both is improved, the our suppliers and customers have engine’s noise evolved. Their needs and abilities have changed, and that puts levels reduced, and the emissions new demands in front of us. We’re not making changes just to make lowered. changes,” Malmborg says.

Even if customers have been an integral part of the development work, giving their opinions as input, their first chance to literally touch the first G

generation machine was in May at the CeMAT trade fair, the biggest international fair for logistics professionals.

There in Hannover, Germany, Cargotec unveiled its new The new system DCG90-180 range of Kalmar will not decrease forklifts. This new range of lift the importance of trucks – with capacities between 9–18 tonnes – is the first of the drivers’ skills.

Kalmar G-series equipment to The driver is still in be built boosting all of the new control. generation’s features and advantages.

The new vehicles endured rigorous field tests, and for the last year, in the toughest conditions in Canada.

The launch of the G generation will be a gradual one, and won’t cover all product categories at once. The plan is to gradually introduce more and more Kalmar counterbalance machines so to that the new G generation slowly begins to take shape.

“We’ll have to work on the next step, always, continually.

The new cabin will probably last a good while, but we’ll have to be sensitive to our customers’ needs, and get better all the time,” says Malmborg.

“We’ll keep our eye on the competition, but at the same time, we make our products for our customers, and we try to do that work better than ever,” he concludes.

KALMAR AROUND THE WORLD

13

GLOBAL CASE

The tornado’s strength toppled heavy equipment, severely damaging port operations.

Rebuilding Freeport

Grand Bahama

TEXT Tarjei Isaksen

A normal day at Freeport, on the island of Grand Bahama, turned into a disaster zone when a tornado tore through the area on 29 March 2010, causing severe damage to one of the world’s top 100 container terminals.

Cargotec Services was called to help restore the port’s activities.

Operations were in full swing when without warning an incoming tornado was sited at 11:40 am, and within minutes, it hit Freeport’s quayside.

The immense force of this powerful storm delivered severe consequences, including extensive equipment damage. The tornado’s sudden appearance meant that there was not

14

KALMAR AROUND THE WORLD

enough time to evacuate staff, and sadly, this resulted in many injuries and the tragic death of three employees.

Seven of Freeport’s 10 ship-to-shore (STS) cranes were operational at the time of the incident. The tornado’s wind strength was so strong that these monster quay cranes were pushed around like matchsticks, and the

aftermath literally resembled a bomb site.

Crane 10 was completely wrecked and had fallen into the water. Crane 9 and 8 had been forced off their rails, and cranes 5, 6 and 7 also suffered significantly. The wreckage resembled a sea of twisted metal booms, broken bogeys and damaged motors.

Other quayside equipment, including straddle carriers and terminal tractors, were also badly affected, and many containers were scattered around the terminal area.

Knowing who to call

When all was said and done, Freeport’s management team faced the formidable task of returning the terminal back to normal as quickly as possible.

Charles Stewart, Engineering Manager at Freeport, and Mike Murray, Head of Cranes for the Hutchinson Group, had previous experience working with Cargotec Services after a hurricane damaged another port in the area. So they knew who to call, and according to Stewart: “We knew that Cargotec Services was not only one of the few organisations capable of handling this sort of damage, but

Charles Stewart, Engineering Manager at Freeport.

they also had the expertise and resources available to quickly respond in emergency situations.”

That same evening, they called Ed Johnston, VP of Regional Operations for Cargotec Crane and Electrical Services.

Johnston, based in Charleston, South Carolina, jumped straight on the plane and was on-site by 10 am the next morning to survey the damage. Johnston says, “Due to the state of the port it was not easy to make the assessment. It looked like a war zone with cranes everywhere.”

However within five days, Johnston and his colleagues had completed the initial assessment. They deployed a team of 30 to 40 people, including surveyors, technical services, geometric survey specialists, machinists, and local labour, to initiate repairs and general clean-up. Within two days the port had returned to moving containers again, albeit at 50 percent of its normal capacity and only from the second berth.

Bringing the port back

Approximately two weeks after the tornado touched down, Matt Mumley, Cargotec Services Project Manager, and a team of 20 engineers began the work to rebuild Freeport’s cranes.

A schedule was agreed to bring the port back into full operation and as soon as possible. The initial priority was to repair any surface damage to the quayside and put the STS cranes back on their rails.

“This sort of project demands a lot of planning and coordination, from suppliers of components to specialised equipment, and you need a solid, professional team for this

kind of rebuilidng work,” Mumley explains.

Ed Johnston adds that the plan was based around sending one crane per month back into operation. “Our repair schedule included non-destructive testing techniques followed by retro-fit works to prove that each crane could safely operate at full capacity. All turnkey repairs were completed in April 2011,” he adds.

As it happens, Crane 10 was partly in the water and completely wrecked, so this was subsequently scrapped. “To get as many cranes into operation as quickly as possible, we improvised a lot in the field to make cranes 5, 6 and 7 operational first. We then cannibilised cranes 9 and 10 to make crane 8 operational, and later restored crane 9 back into service. To all cranes, there was structural damage to the gantry, boom and also a lot of mechanical damage to the motors and bogeys,” says Mumley.

Stewart says Cargotec responded quickly and efficiently. “We really appreciate the skills of Ed, Matt and the rest of the Cargotec Services team. The tornado had a devastating effect on the people and businesses here at

Freeport, and we applaud how professional the team responded. It was an extremely difficult set of circumstances, but Cargotec Services once again demonstrated its unique capabilities in these particularly challenging types of projects.”

About the customer Freeport Container Port Limited is owned and operated by Hutchison Port Holding (HPH) in partnership with Mediterranean shipping Company (MSC). The original company was established by HPH in conjunction with the Grand Bahamas Port Authority (GBPA). Freeport is a top 100 container port with a handling capacity of 1.5 million TEU per annum. It has nine STS cranes and 72 straddle carriers, of which 49 are Kalmar-branded machines.

Since the incident, Freeport has improved its safety procedures and introduced new warning systems in addition to implementing a separate weather monitoring system.

A team comes together to restore Freeport’s port operations in the Grand Bahamas.

KALMAR AROUND THE WORLD

15

CUSTOMERS

Modern container handling in Santos, Brazil TEXT Sarah Hudson

Tecon Santos container terminal.

PHOTO Santos Brasil

From tall ships to high technology

TEXT Sarah Hudson

Arriving by boat to the historic city of Santos, founded in the 1500s, you see the fantastic waterside views of a city that has been a most important coffee trading centre since the early 19th century.

Today its port is the largest Kalmar customer in the country, the home of Tecon Santos – the largest container terminal in South America – and the epitome of a modern, bustling hub of commerce.

Like any self-respecting Brazilian city, Santos is famous for two things: coffee and football.

Strolling around the city, you certainly get the feeling that neither of these is to be taken lightly. In line with this philosophy, the city boasts its own extravagantly marble-floored Coffee Museum on the historical site which was the official centre of coffee-pricing negotiations until 1950, and a football memorial – complete with five kilometres of waterfront garden – dedicated to the city’s greatest players and Pelé’s famed Santos FC. Yet in this age of advanced harbour side technology, it is the port of Santos, which,

Kalmar E-One RTGs at Tecon Santos.

before even football and coffee, plays perhaps the most crucial role in defining the municipality that spans both the island of São Vicente and the mainland. An important centre of trade and commerce for over two centuries, it is now a significant international trading hub. The port of Santos is the most active port in not only Brazil, but also the whole of South America – and it feels like it, too. Rubber-tyred gantry (RTG) cranes are constantly on the move high above, loading and unloading some of the more than 1.4 million TEUs handled at the port in the most recent years.

A crucial trading gateway

Cutting-edge technology from Kalmar is at the heart of this busy port’s daily operations, with cargo handled utilising technology that also controls the daily entry and exit of around 4,000 trucks. The port’s clients include Hamburg Süd, MSC, CSAV, CMA-CGM and Evergreen – all companies for whom rapid and efficient cargo transportation and storage options are an everyday necessity. At Tecon Santos, the Guarujá City container terminal site, Santos Brasil Com-

pany handles 51 percent of the cargo at the Port of Santos, and 23 percent of all containers handled in Brazil.

The unique location of the city of Santos has for centuries made it ideal for both accessing the vast Atlantic Ocean and for crossing into the populated interior of South America. Against the backdrop of the picturesque Serra do Mar mountain range, which divides the coast from the inland regions of São Paulo, Tecon Santos comprises four berths along a continuous wharf that stretches for almost a kilometre, two warehouses covering 12,000 sq m, a three-kilometre rail spur, and a vehicle export terminal.

For hundreds of years, immigrants, port workers and cargo alike have journeyed back and forth along the 79-kilometre rail link to Sao Paulo city. The scale of this hive of activity is such that only from the air can you get a true picture of its impressive size.

Standing among imposing stacks of

The port of Santos is the most active port in not only Brazil, but also the whole of South America – and it feels like it, too.

KALMAR AROUND THE WORLD

17

While activities at the terminal may appear frantic, almost chaotic, in fact every movement is carefully orchestrated and monitored.

Caio Morel, Santos Brasil’s Operations Director, says that cutting-edge technology is helping the port to increase capacity.

cargo containers, Caio Morel, Santos Brasil’s Operations Director, tells us how Kalmar equipment helps improve efficiency at the terminal: “Kalmar Smartrail® GPS positioning system allows extremely precise cargo moving, as it is compatible with our own system,” he explains, also pointing out that Santos Brasil Company’s sophisticated logistics planning system, Navis, performs storage control functions and plans ship container loading and unloading. The system uses specific software to book terminal space and also to plan the logistics of placing containers on the ships. This process means that the terminal can hold many vessels worth of cargo on site, stored according to scheduled shipment, port of destination and weight range.

According to Morel, the 29 Kalmar E-One RTGs we see busily moving around us – with 45 ton lifting capacity – are purchased by means of a tender that takes into account price, technology and after-sales service.

Santos Brasil Company will operate with one of the world’s largest fleets of all-electric Kalmar RTGs when it takes delivery of a further 12 E-One2 cranes from Cargotec later this year, bringing its total to 41 units. With the help of this cutting-edge dockside technology, Tecon Santos is aiming to

18

KALMAR AROUND THE WORLD

achieve an increase in its current capacity of more than 140 percent.

As another RTG rolls by, Morel explains the vital role that these lofty giants play at the port: “Eighty percent of the work here is done

by RTGs; they are essential for the operation, as they handle the cargo from the top and can be used to handle smaller containers as well, eliminating the limitations of the storage area.”

Keeping cargo on the move

Until World War II, the main product exported through Santos was the massive amount of coffee produced by São Paulo state.

Today, a much more diverse range of cargo passes through the port. While coffee and sugar still represent 20 percent of the containerised cargo handled at the port of Santos, now the terminal also handles many of Brazil’s other exports, including vehicle parts, chemicals, machinery, orange juice, frozen beef and soybeans. These products are scattered across the terminal in the thousands of large, colourful containers that we see being manoeuvred around the port.

While activities at the terminal may appear frantic, almost chaotic, in fact every movement is carefully orchestrated and monitored using the latest technology. Kalmar has been a key player in modernising operations at Tecon Santos and an active collaborator in smoothing out transportation procedures and processes for over a decade – 29 Kalmar

Christ the Redeemer statue in Rio de Janeiro.

Brazil

Santos

RTGs perform 200 daily moves for handling 6,000 containers every day.

Santos Brasil Company has been a Kalmar customer since 2000 and, according to Morel, in terms of maintenance it’s a significant advantage to have a standardised set of equipment: “If the equipment is in need of maintenance, all we need to do is cross the road from Tecon Santos to Cargotec’s service facilities, where we benefit from quick and personalised after-sales service,” he explains.

With Kalmar equipment in place, the terminal has seen a five-fold growth in its cargohandling volume. This has had a tangible impact on productivity: when the units were put into operation, the number of container moves per hour was raised from 11 in 1997 to an average of 61 in 2011. This is particularly vital to a terminal that has the capacity to process well over two million TEUs per year. Even in the midst of an economic crisis, which slowed cargo flows in Latin America and across the world, Tecon Santos still handled a throughput of 1.4 million TEUs in 2010.

Doubtless, the recovery of world finances in future years will see total throughput eclipsing its current record of 2.7 million TEUs in 2008.

Investing in the future

The importance of the smooth and effective functioning of the port to the state of São Paulo, and to the Brazilian economy as whole, has been well recognised by inves-

Facts on Brazil Referred to as BRIC (Brazil, Russia, India and China), these four countries have the potential to become the world’s most dominant economies by 2050.

Provides around USD 1 billion per year in financial aid, local expertise and measures to improve governance in developing nations.

Five-time winners of the FIFA World Cup, and host of the 2014 tournament, which will be held in 12 cities around Brazil, including São Paulo and Rio. Will host the Summer Olympics in August 2016.

Produces approximately one-third of the world’s coffee.

tors and the federal government alike. Santos Brasil Company’s operations, including three terminals employing more than 3,000 people, are constantly being improved, with R$ 1.3 billion (over EUR 560 million) of investment planned for 2011. The Port of Santos area also receives federal government investment in projects such as the deepening of the pier draft from 15 to 17 metres, at the cost of R$ 196 million (almost EUR 86 million); the port is also to receive an additional R$ 1.4 billion (around EUR 613 million) for improving waterway and land access infrastructure. Such funding injections are indicative of the struggle to keep port infrastructure and equipment up-to-date to cope with what can

at times be an overwhelming workload.

The rapid modernisation and expansion of container handling in South America is expressed in a microcosm at Santos. Sitting by the harbour enjoying a cup of coffee, one can watch hefty 45-tonne containers being lifted from the gargantuan cargo vessels that have replaced the elegant European barques that once moored in the harbour of Santos. The benefits reaped by the increased use of intelligent, locally maintained, and effective industrial technology are helping to ensure that this historic maritime gateway to Brazil will remain a crucial international commercial hub well into the future.

KALMAR AROUND THE WORLD

19

STRATEGY

Global trends set the stage for Cargotec’s strategy

TEXT Joanna Sinclair

5H¿QHG VWUDWHJ\ ZLWK LWV IRXU IRFXV DUHDV JLYHV GLUHFWLRQ DQG PDNHV VXUH WKDW &DUJRWHF VWD\V DJLOH

20

Mikael Mäkinen, President and CEO of Cargotec, stresses the importance of keeping in tune with the world and its changing environment. As Mäkinen explains, every company should appraise change regularly and make sure they are following the direction that the world is taking.

But when it comes to Mäkinen’s own territory, the word follow is fast forgotten. In Cargotec’s case, keeping up with the rest is never enough. Cargotec has always taken pride in being at least one step ahead of the rest, in tune with the times and when deemed wise by the people in charge on the first wave of renewal and changing the rules.

This outlook has paid off. Cargotec is one of the few companies that made it through the global credit crunch nearly untarnished, especially when compared to much of the competition.

“I think 2010 was a year when we stabilised the course and development of our company.

Are we happy with our recent financial results?

Let’s say that we are happy with the development of the results,” Mäkinen affirms.

Cargotec is currently working hard to incorporate its newly refined strategy. It is not a fully new way of thinking or acting more of a nudge to make sure Cargotec will be market leader in years to come as well. The strategy is both very clear and fuzzy at the same time, so that

KALMAR AROUND THE WORLD

Cargotec will not lose its ability to agilely change when necessary, as Mäkinen emphasises.

During the strategy process, which was wrapped up in autumn 2010, Cargotec’s experts identified four major trends. The global trends include the global economy’s shift towards the east, urbanisation, the acceleration of technological change and the shortage or even lack of critical raw materials. Cargotec responds to these global trends by focusing on four areas: customers, services, emerging markets and internal clarity.

Mega trends unravelled

The first of the global trends derived from Cargotec’s strategy work is Asia’s rise. A considerable part of Cargotec’s clientele operates in growing markets, Mäkinen points out.

Asia has become the hub of global production, which has especially affected Cargotec’s Terminal and Marine business. Most of Asia’s production has traditionally been fed to Western markets, but the East is rapidly learning to consume in abundance as well. Major local economies are rising in Asia, with production and consumption concentrated in the same markets. As much as 37 percent of the world’s container traffic can already be found within Asia.

GLOBAL MEGATRENDS 1/4

GLOBAL ECONOMIC SHIFT TO ASIA

37%

Intra-Asian freight already accounts for 37 percent of global container trafямБc.

KALMAR AROUND THE WORLD

21

GLOBAL MEGATRENDS 2/4

“The world is changing, as URBANISATION evidenced by the fact that intraAsian traffic, not intercontinental freight traffic, now accounts for the biggest container volumes,” Mäkinen says.

Urbanisation is another It is estimated that major trend affecting Cargotec’s over 6 billion business. Global urbanisation is people will live in cities by 2050. accelerating, particularly in Asia and other developing areas, such as South and Central America and Africa.

This trend has many outcomes that will inevitably affect Cargotec’s business as urban life requires unparalleled material flows all the way from transporting foodstuff to sophisticated waste handling solutions, which components to improve the overall effiis one of Cargotec’s key competence areas. ciency ratio. Advances are being made in Urbanisation is occurring hand in hand with a terms of equipment as well: from Cargotec’s rapidly accelerating lack of raw materials, and perspective, one of the main objectives is tightening environmental legislation. reducing the weight of equipment. This can Expert sources have estimated that the be achieved by, for example, developing the next global crisis will not be about credit, characteristics of steel and using alternative it will be about raw materials. The shortmaterials. age already has a huge impact, one which is Finally, the fourth global trend is the expected to increase despite new materials acceleration of technological change, namely and energy saving solutions that are being digitalisation. Foremost, digitalisation adds brought to the market. Consumption levels safety to both Cargotec’s customers and are simply rising so rapidly around the globe.

Cargotec’s personnel. Digitalisation is, for The lack of raw material clearly affects instance, opening possibilities for a full range load and cargo handling, where reliable alterof new safety features in cranes, as a heightnative fuel solutions are much sought after. ened awareness of surroundings increases Efforts to cut fuel consumption are also in the safety of the equipment operator, as well the making by reducing friction or combining as other people nearby. It is also the key to neighbouring safety work, such as a research project Cargotec is involved in where a GLOBAL MEGATRENDS 3/4 system is being developed to use sensors to TECHNOLOGICAL monitor the driver’s alertness.

6 billion

CHANGE

Digitalisation is a key driver of technological change, as evidenced by the spread of smart solutions. In Cargotec’s sector, this means equipment that is better able to communicate with both the operator, and the operating environment.

22

KALMAR AROUND THE WORLD

All eyes on the customer

Cargotec’s four strategic focus areas, customers, services, emerging markets and internal clarity, all deal with the global trends and make the most of them in business. In each of the key focus areas, Cargotec is either already working hard to achieve a new balance, or has clear cut plans about when and where changes will start taking place.

Instead of individual products, customers increasingly expect complete solutions that include customised equipment, and service concepts that cover their entire life cycle.

Internal clarity is a prerequisite for all of the other focus areas to flourish. In services, the refined strategy entails that a stronger emphasis is put on developing services in line with the customers’ value chain, and on seeking growth when customers outsource their service operations.

In terms of matching services with geographical presence, Cargotec is already unrivalled. Yet much can be done to improve.

Mäkinen explains how today, instead of individual products, customers increasingly expect complete solutions that include customised equipment, and service concepts that cover their entire life cycle. Add on the powerful consolidation trend and a clear picture is painted: one where, as Mäkinen points out, Cargotec is in a unique position. Bigger global players want partners who can match their size and meet their needs. This is good news for Cargotec and its service and distribution network.

“The whole world is our market area. We can serve our customers wherever we are needed,” Mäkinen reminds.

In the upcoming years Cargotec is going to

By acquiring Navis, the leading terminal operating system (TOS) provider, Cargotec will further strengthen its ability to provide total solutions for terminal customers. strive to keep its current hold in established markets such as Europe and North America and work to take a stronger stance in China and in the other BRIC countries: Brazil, Russia and India.

Although Cargotec’s strategy underlines the importance of emerging markets, services and internal clarity, Mäkinen reminds that the core of the strategy is the customer.

“We make constant efforts to better understand our customers through their business needs,” Mäkinen says.

Cargotec’s strategy is based on customer insight while flexibly adapting to changes in the world economy and Cargotec’s industry.

“Focusing on customers and customer segments means that we are adapting our

GLOBAL MEGATRENDS 4/4

LACK OF CRITICAL RAW MATERIALS

1.35 trillion

offering from a customer point of view. We will make decisions where to invest and what to divest. We are going to invest in the areas where we feel that we can be the world market leader. To strengthen selected offering and segments is our ongoing journey,” Mäkinen explains.

The Navis acquisition supports Cargotec’s strategy to focus on customers and invest in attractive customer segments. With this acquisition, the company has taken the first steps to develop its business according to customer needs. By acquiring Navis, the leading terminal operating system (TOS) provider, Cargotec will further strengthen its ability to provide total solutions for terminal customers.

The customer is at the heart of Cargotec’s refined strategy and a genuine customer perspective is key to everything the company does. Cargotec’s future is not set in stone, but one thing is certain: from a customer’s perspective, the years to come look more promising than ever. Cargotec is going to serve its customers far better than competition can even aspire to, grow faster than the market – and keep cargo on the move.

As of 2010, the US government estimates that the world has proved oil reserves in the neighbourhood of 1.35 trillion barrels.

The refined strategy keeps old promises Cargotec’s customer promise ‘we keep cargo on the moveTM’ sounds simple enough, but when you take a look at the larger picture, it is anything but easy.

The promise drives business, guides behaviour – and is downright challenging to live by. It is difficult, because Cargotec never makes empty promises. Keeping cargo on the move requires genuinely understanding how customers’ businesses operate and fully appreciating all the nooks and crannies of their business environment.

Cargotec provides cargo handling solutions and services for on-road, industrial, harbour and marine cargo handling and offshore load handling.

In practise, it means being on the cutting edge of technology whether the issue at hand is automated container handling or hydraulic hybrid drive terminal tractors. Cargotec needs to know how offshore support vessels operate day in and day out, how EU’s machinery directive sets safety standards on new levels and how this affects crane operation businesses.

Whatever happens in the customers’ business environment, keeping cargo on the move means Cargotec needs to be on top of it.

Cargotec’s mission is to improve the efficiency of cargo flows. The company does this by helping customers’ operations run more efficiently: Cargotec delivers reliable equipment and services, maximises fleet and ship productivity, and can help in improving operations’ total performance with complete systems, concepts and design.

Cargotec´s goal to provide customer solutions in 2015 starts with a plan to focus globally on customers. In 2011, all eyes and ears are on the customer: listening, learning, and making sure Cargotec is up to speed when it comes to customer needs.

KALMAR AROUND THE WORLD

23

CUSTOMERS

SNP’s Kalmar Zero Emission™ cranes receive power through cable reel.

24

KALMAR AROUND THE WORLD

Vietnam tn Ho Chi Minh City

Vietnamese port goes greener with

Kalmar Zero Emission RTG™ cranes Saigon Newport Company (SNP), Vietnam’s largest container terminal operator, continues to prefer Kalmar E-One RTG cranes. Operating with RTGs from Cargotec at its container terminals near Ho Chi Minh City, SNP recently took delivery of the region’s first Kalmar Zero Emission RTG™ cranes featuring the same proven reliability with even greater eco-benefits.

TEXT Le Thu Huong

Under the blazing sun of Ho Chi Minh City, the country’s biggest metropolitan area with a population estimated at 10 million, it’s easy to spot the Kalmar E-One2 Zero Emission rubber-tyred gantry (RTG) cranes at work at Tan Cang-Cat Lai terminal in District 2.

The fully electric cranes from Cargotec were recently implemented to support Saigon Newport’s (SNP) growth strategy as it aims to embrace more environmental-friendly technology.

“The economic benefits are clear,” says Le Tuan Anh, General Director of the SNP Technical Department. “Where we were operating with 3+1 wide cranes before, the 6+1 wide Kalmar cranes have helped us increase

our terminal capacity using the same operaCat Lai terminal in District 2. With an area tional area.” of 800,000 sq m, the Cat Lai terminal can Established in 1989, SNP handles about 80 accommodate the industry’s most advanced percent of the Ho Chi Minh City area’s import equipment. and export volume, and nearly half nationSince 2007, SNP has gradually replaced wide. The company surpassed its target in its smaller other-branded cranes with 6+1 2010 handling 2.8 million TEUs, surpassing wide and 1-over-5 high Kalmar E-One model the 2.4 million TEUs handled RTGs. Including its newly in 2009. SNP recorded VND installed six Kalmar Zero “Kalmar Zero 900 billion (EUR 29.6 million) Emission RTG™ cranes, Emission RTG™ cranes generate in revenue in 2010. which are connected to no emissions, little mains power through cable Shift to new technology noise and have low reel, SNP deploys Kalmar operating costs.”

RTGs between its operations Starting in 2005, SNP made at Tan Cang-Cat Lai and Tan the decision to move out of Cang-Cai Mep terminals. central Ho Chi Minh City and began shiftSNP praises the Kalmar Zero Emission ing its main container handling operations RTG™ cranes for generating no emissions, from Tan Cang in the Binh Thanh District to

KALMAR AROUND THE WORLD

25

producing considerably less noise and having low operating and maintenance costs.

Their energy cost savings are roughly 80 percent compared to diesel-powered RTGs. The Kalmar RTG cranes, which can “Kalmar cranes are handle 40-tonne receiving wider loads, receive power attention from through cable reels other Vietnamese and regenerate energy customers.” when lowering loads, supplying the power back to the network, which means the operator only pays for the actual energy it consumes. The equipment can also help keep the terminal environment cleaner by eliminating oil leakages.

Kalmar equipment operating at Saigon Newport’s container terminal.

Silent, clean efficiency

Norway Oslo

TEXT Minna Takkunen

The Port of Oslo was the first customer to invest in Kalmar Zero Emission RTG™ cranes back in 2002. Besides bringing the noise down, the cranes have helped reduce on-site carbon-dioxide emissions.

Air and noise emissions are often a significant problem at ports situated near residential areas. As the amount of cargo around the globe shows no sign of decreasing – quite the contrary – less polluting and more silent solutions for cargo handling are warmly welcome.

Back in 2002, the time had come to act. Terminal capacity by way of reachstacker handling had reached its limit at the Port of Olso. What was needed was a working option to solve both a capacity and noise problem at the Port, as the

26

KALMAR AROUND THE WORLD

Operational cost savings

boast to our capacity to load “We are looking at and unload vessels,” says using only Kalmar Duan. cranes for our main container operations.”

According to Tuan Anh, the company saves an estimated VND 1 billion (EUR 33,000) annually per crane in operational costs compared with conventional RTGs, which are diesel-powered, considering that the domestic fuel cost is three to fourth times higher than electricity.

Vu Kim Duan, Deputy Director of the SNP Technical Department, explains the former 3+1 wide cranes are harder to operate and maintain because they require hydropower and are only suitable for smaller terminals.

“In the near future, we are looking at using only Kalmar 6+1 cranes for our main container operations, which will give a major

Increased capacity is needed

SNP’s growing fleet of environmentally friendly Kalmar cranes has also gained the interest of other Vietnamese port operators.

“Kalmar cranes are receiving wider attention from other Vietnamese customers, but it takes time for other smaller ports to build the necessary infrastructure to handle modern equipments,” Duan adds.

At SNP, Kalmar Zero Emission RTG™ cranes are also equipped with the latest Bromma electric yard spreaders, which is the

leading crane spreader company that is also a part of Cargotec Corporation. SNP technicians say Bromma has improved the latest generation of yard spreaders, with better features that make them more reliable and durable.

Vietnam’s sea transport industry is predicted to continue developing rapidly, as the country takes a more positive position with regards to international trade and export.

Major domestic ports are critically required to increase their capacity. By boosting its handling capacity with container handling equipment from Cargotec, SNP hopes to reach its target of moving 3 million TEUs in 2011. It also plans to improve its electricity network to accommodate more fully electric cranes.

supply,” explains Halvorsen.

In addition to being very cost effective and eco-friendly – the cranes’ electricity is supplied by a sustainable energy source: a Norwegian waterfall.

As one of the environmental targets of the Port of Oslo has been to lower the amount of carbon-dioxide emissions by 10 percent between 2008 and 2012, Zero Emission RTGs have been a complete solution in more than one respect.

Per Halvorsen, Director of the Technical Department at the Port of Oslo

Cargo up and emissions down

sounds were too much for nearby residents.

In addition to finding cranes that would bring the sound levels down and efficiency up, a flexible alternative was on the wish list, as the actual terminal area was at an intermediate stage and planned to be moved in a few years time. “RMGs were too permanentlooking, while RTGs were more flexible and could be moved around, if needed,” says Per Halvorsen, Director of the Technical Department at the Port of Oslo.

In the end, the Port decided to purchase four Kalmar Zero Emission rubber-tyred gantry (RTG) cranes, which were also some of the widest RTGs Cargotec has ever built at 9+1

wide and one-over-four high. The investment has paid itself back many times. Halvorsen tells that besides producing less sound, the safety aspects and high density stacking features have worked very well in their operations.

Kalmar Zero Emission RTG™ cranes feature the industry’s longest maintenance interval also helping to reduce costs.

Crane equipment has always been an environmental issue at the port. “Diesel engines are hazardous in residential areas, and all of the port is located near residential areas. Our RTGs are electrically driven receiving power through cable reel supplied from the mains

Halvorsen reveals that the amount of containers handled at the port is at an all-time high. In 2010, containers comprised 24 percent of the entire 5.4 million tons of cargo that went through the port. Sixty percent of that amount was import and 40 percent export. Products that get transferred through the port are mainly oil, salt, cement, stone, timber, newsprint and grain.

A growing amount of the cargo arriving to the Port of Oslo comes in containers handled by cranes – 202,000 TEUs were handled in 2010 – and lift-on, lift-off container handling is its fastest growing cargo function. The Port plans to expand its container handling capacity by 2015 with a new 400,000-TEU terminal.

KALMAR AROUND THE WORLD

27

PARTNERS

Hybrid development benefits from joint driving power With help from Singapore Technologies Kinetics (ST Kinetics) and its subsidiary, Kinetics Drive Solutions (KDS), an advanced transmission and vehicle drive systems company, Cargotec launched to market late last year the industry’s first hydraulic hybrid drive terminal tractor.

TEXT Minna Takkunen

Cargotec, in partnership with ST Kinetics and its subsidiary KDS, developed a parallel hydraulic hybrid drive system for the Kalmar Ottawa 4x2 terminal tractor. Paul Dries, Sew Chee Jhuen, President, ST Kinetics, and Mah Chi Jui, stand by the hybrid machine, which was displayed at KDS’ open house to celebrate its Canadian facility’s expansion.

28

ST Kinetics is one of Asia’s leading defence and specialty-vehicle companies. Their large portfolio includes everything from road construction vehicles and excavators to dump trucks. They also offer design and development, prototyping, systems integration, production, operations, and lifecycle management.

KALMAR AROUND THE WORLD

KDS, in turn, specialises in control engineering and hydraulics solutions, such as drive trains based on mainly hydraulic power-split transmissions. The subsidiary has its foundation in a company whose main aim was to manufacture forestry machines that would be not only fuel-efficient but also gentle to the environment.

“Our transmission systems have a large influence on how the engine operates and performs. All the technologies we Given plans to use complement expand to more commercial markets, engines and make them more effiCargotec makes an ideal partner for KDS. cient and cleaner,”

says Paul Dries, Director of Business Development at KDS. Mah Chi Jui, CEO of KDS, tells that the company has expanded their testing facilities space and is also planning to hire more people. With plans now to expand more into the commercial market, Cargotec makes an ideal partner for KDS. Designs for a greener future

Located in Vancouver, Canada, KDS is based 100 percent on export, with primary markets currently in China, Singapore and the United States. “Singapore is our biggest customer right now,” Mah Chi Jui tells. Dries points out that operating internationally has provided the company with strong expertise in dealing with differThe system ent business clisuits heavy-duty mates around applications, such the world. as work trucks and ST Kinetics transit buses. and KDS have, together with Cargotec, developed the first hydraulic hybrid drive terminal tractor in the world. The Kalmar hydraulic hybrid drive terminal tractor is equipped with a parallel drive system which transmits power from two distinct sources: the primary diesel engine and the secondary hydraulic motor. The two work

together to maximise fuel economy and support application constraints.

Innovations from customer needs

While the hydraulic hybrid drive terminal tractor was originally developed for port operations, the technology has large commercial potential. Mah Chi Jui explains that the process leading to the cutting-edge solution sprang from customer interest: concern for the climbing price of fuel. As a result, the main potential lies in areas where fuel price is on the rise, such as North America, Europe and certain parts of Asia.

The system suits heavy-duty applications, such as work trucks and transit buses, and there is also a lot of interest in the refuse market, Dries explains.

With their vision of doing more commercial business rather than consulting work, KDS is looking into providing not only the transmissions, but the whole vehicle, developed individually based on a customer’s needs. This could be done with the Cargotec and KDS expertise brought together.

“For example, Cargotec could manufacture a vehicle with KDS’ Infinitely Variable Transmission and, if a customer wants the option, they could also have the hydraulic hybrid system in their application,” says Dries.

Green and clean on the go • Cargotec has worked together with the global engineering company ST Kinetics and its subsidiary KDS since 2009 to produce innovative hybrid drive technology.

• The hybrid solution developed together for the Kalmar terminal tractor recovers braking energy and releases it during acceleration, which has the potential to reduce fuel consumption by up to 20 percent and emissions by approximately 15 percent.

• KDS is looking into applying the hybrid solution into wider commercial use, such as transit buses and other heavy-duty vehicles used in urban areas.

• The hydraulic hybrid Kalmar terminal tractor is a Pro Future™ solution, making it a part of Cargotec’s ecofriendly portfolio.

• KDS designs unique technologies for Infinitely Variable Transmission (IVT) systems that save fuel and the environment.

KDS’ facility in Vancouver includes 24,500 sq ft of manufacturing and testing space and 12,000 sq ft of office space. The company’s state-of-the-art dynamometer test equipment (left) allows KDS to critically evaluate its own product designs safely from the control room above (right).

KALMAR AROUND THE WORLD

29

CUSTOMERS

Santander Spain

Customised solutions

facilitate workflow Spanish logistics company Heavy Movement and Cargotec developed new features to suit special logistic needs at a steel mill site in Santander, Spain.

TEXT Johanna Kippo

On the shores of the Bay of Biscay, a stronghold of Spanish steel industry, logistics company Heavy Movement makes sure that raw materials, finished products and everything in between are kept on the move in a steel mill area.

The steel mill Global Steel Wire, located in the seaside town of Santander, has outsourced the logistics in the plant area. It is the duty of Heavy Movement to guarantee that the mill remains operative 365 days a year, around the clock.

30

KALMAR AROUND THE WORLD

Kalmar is one of the brands that Heavy Movement relies on as a collaborator in Global Steel Wire’s operation. The heavycargo logistics specialist deploys nine Kalmar terminal tractors, four of the model TRX-242 and five of TT612d, at the Santander site.

They all ensure that tonnes of scrap metal, billets, evacuated slag and finished wire rod product find their way smoothly to where they belong in the plant area.

In addition, Heavy Movement employs a wide variety of attachments offered by

Cargotec, such as shovels, straight and round tongs, and tailor-made solutions to move steel rolls.

“We are a very innovative and creative company. We always try to re-think the logistic processes,” says Iván Bailach, Heavy Movement’s Deputy Managing Director and Head of Business Development.

Heavy Movement is a long-time user of Cargotec’s Kalmar material handling equipment. Earlier, Cargotec worked with Heavy Movement’s parent company, José Llinas

Heavy Movement in nutshell Heavy Movement was founded in 2002. Up to 90 percent of its turnover is based on multi-year contracts at factory locations. Today it handles logistics operations of industry units in the steelworks group Celsa, both in Barcelona and Santander.

Heavy Movement also offers consultancy services on how to find the best solution to move containers and other heavy items.

The company employs 250 people, which includes on-site management at factories, warehouses, and sea terminals, and other personnel for loading steel products on train and metal recycling.

“You can trust that if there is a problem, Kalmar will respond.”

– Iván Bailach, Heavy Movement

A Kalmar TT612d is loaded with scrap metal in the plant area.

KALMAR AROUND THE WORLD

31

A Kalmar terminal tractor offloads iron pallets in the plant area.

Heavy Movement’s Iván Bailach and José Ramón Pelayo, are reponsible for the company’s operations in Santander, with a Kalmar TRX-242 terminal tractor.

Steel industry in Spain The Spanish steel industry did not go untouched by the economic downturn. Although the domestic market continues to be weak, Spain’s steel industry has resumed its export activity with the expectation that this market will perform better. In 2010, Spanish crude steel production grew 13.7 percent from 2009 to 15.2 million tonnes.

The country’s steel industry is mainly located in the north in Biscayan, Cantabria, and Asturias regions, and in the south near Valencia.

Unique to the Spanish steel industry is that it continues to use electric arc furnaces. They are used for 78 percent of crude steel production while the world average is around 30 percent, a more popular model being blast furnace. Subsequently, the Spanish industry is less susceptible to changes in iron ore prices but more dependent on scrap metal and electricity prices.

32

KALMAR AROUND THE WORLD

A Kalmar TRX-242 with a rolltrailer platform is used to load billets.

e Hijos, which specialises in machine rental and cargo handling at the Port of Barcelona.

A steel mill must keep running

A steel mill is a demanding work environment for cargo handling. It is fundamental that technical problems not paralyze the plant.

At the Santander location, steel manufacturing is done by recycling scrap. Scrap is smelted at a steel shop with an electric furnace. The result is a semi-product steel known as billet.

The solidified steel will be packed into 180x180 mm square billets. Each of them is 10 to 13 metres long and weighs 2.5 to 3.25 tonnes. Subsequently, these will be transformed at a rolling mill into rod coils.

The customers of Global Steel Wire then use those rod coils to manufacture products

like cords, cables, meshes, springs, pre- and post-stressed concrete, cold-pressed nuts and bolts or tyre reinforcing.

The steel company was aware that Heavy Movement operated with productive Kalmar workhorses backed by Cargotec’s reliable and experienced service network.

“You can trust that if there is a problem, Kalmar will respond,” Bailach says. “Whether it is about further information or new equipment, you will be sure that Cargotec will take care that everything arrives to you in time.”

Modifications to increase efficiency

Heavy Movement purchased a number of Kalmar terminal tractors both last year and this year for Global Steel Wire’s unique operation. The company requested some additional features, which would increase the machines productivity while also working as

Also on the company’s wish list for its new Kalmar units was low fuel consumption, minimal maintenance costs and extended guarantee terms.

Heavy Movement’s planning meeting, with Miguel Ángel Fernández, Iván Bailach, Miguel Ángel Olavarría and Ángel Álvarez.

wrong by just having a look at the indicators a cost-effective solution. on the outside to check the levels. It is also The tractors had to have an extra hydrauuseful to have a unique spot, instead of several, lic function. Heavy Movement wanted the where to introduce grease. tractors to be able to lift the haul and turn “The changes would minimise the amount it almost vertically. This would allow them and cost of maintenance work, which is very to dump the metal scrap into a big pile and important for us. That makes us more costempty the haul completely and avoid the efficient,” Bailach explains. time-consuming option of using a crane to offload it. The purpose was to save time durFlexibility and openness to innovation ing the operation, make it simpler and ultimately increase productivity.

To Bailach’s satisfaction, the modifications did The solution that Heavy Movement and not make the Cargotec deal more costly.

Cargotec jointly designed was to add a more “The global price has to be competitive. powerful hydraulic pump. A larger hydraulic Here, the strategy of selling cars – where you tank with more capacity and hydraulic oil was have a basic price and then add all the extras used with hydraulic hoses connecting it to the on top of that – would not work,” he says. vehicle. It enables the tractor to lift the haul “If you wish to win a bid, your providers through a big lifting cylinder until reaching must work in an aligned way. They must be nearly a vertical position. To operate this flexible and open to new ideas and supply function, new buttons were integrated on the innovative ways to improve existing products. dash display.

We want to offer a good product and adapt the Also on the company’s wish machines to the needs of a project list for its new Kalmar units at hand.” was low fuel consumption, Product development minimal maintenance costs together with the customer and extended guarantee terms.

Heavy Movement also proposed During the process, Bailach and a centralized greasing system Managing Director Toni Llinás and requested that key indicafrom Heavy Movement visited tors be located on the outside a Cargotec customer at a simisurface of the machine. lar plant in Germany with IgnaIgnacio de Sebastián, “We consider it more efficio de Sebastián, Cargotec’s TerCargotec’s Terminal cient if you can find out what is Business Manager in Iberia minal Business Manager in Iberia.

Bailach observed how the same models were in use in similar tasks. de Sebastián says that this visit with the customer to Germany helped seal the deal.

“The case of Heavy Movement can be seen as an example of Cargotec’s core values.

Cargotec builds long-term customer relationships by delivering results and working together with the client and internally as a company. For a customer, it means reliability, high uptime, competitiveness and profitability,” explains de Sebastián.

He adds: “Heavy Movement brings out new ideas and puts a lot of effort into its relationship with Cargotec. Some of the modifications are being done for the first time so it is good for Cargotec as well.”

A Kalmar terminal tractor takes billets to the rolling mill for their transformation.

KALMAR AROUND THE WORLD

33

SUSTAINABILITY

Supporting sustainability in day-to-day work Sustainability must be something that is done on an everyday basis, says Agnieszka Beyger, Facility Manager at Cargotec’s multi-assembly unit in Stargard Szczeciński, Poland. She gives us many concrete examples from her own life.

Sustainability means a lot to me, both in my personal life and at work. I am fortunate to work for a company where I can implement sustainable practices on a daily basis. But what does this mean in practice?

I could start with the project I’m working on at the moment, which is the creation and implementation of a water and energy saving policy for our facility. The Stargard factory’s daily routines include a waste policy dubbed “3R”. We aim to reduce, recycle and re-use waste produced during operation. We also have implemented three ISO systems in parallel (9001, 14001, OHSAS 19001). Our top priority is the health and safety of our personnel and their well-being at work.

We also have a pellet heating system, recuperation and heat recovery systems and light photocells. We monitor the production hall constantly to minimise oil leakages, dust and pollution emissions and waste production.

“I think that sustainable solutions improve cost-efficiency as well as the environment. They also benefit employees’ health and provide safety effectiveness for our customers’ operations.”

We also take great responsibility for our location close to the Baltic Sea. Cargotec, as a company, has been deeply involved in the work to save the sea.

Our actions here in the Polish assembly unit also go to other areas. We have an

34

KALMAR AROUND THE WORLD

innovative new technology to clean our floors, the so-called ‘HTC diamond pad method without chemicals’.

I think that sustainable solutions improve cost-efficiency as well as the environment.

They also benefit employees’ health and provide safety effectiveness for our customers’ operations.

Our environmental improvement programmes increase ecological awareness. We do our best to design and develop ecological products, production processes and operating methods to reduce the impact of our assembly processes.

The huge advantage we have is a conscious staff. They all know their responsibilities towards sustainability and are willing to minimise their impact on the environment.

At the beginning of our operation in Stargard, we established an environmental policy and environmental improvement programmes.

It is very important to keep an appropriate balance between development and a healthy environment. I also try to live by doing minimal harm. I segregate waste at home and work. I also print documents only when needed and consider carefully when to use water.

Sustainability helps us understand the inter-connections between humanity, the environment and the general economy. It means operating without doing harm to people and the environment. For me, small issues matter.

Agnieszka Beyger • Agnieszka Beyger works as a Facility Manager at Cargotec’s multi-assembly unit (MAU) in Poland.

• The company’s Stargard Szczecin´ski location opened in September 2010.

• The 27,000 sq m factory has the same focus areas as all Cargotec MAUs this year: deliveries, quality and product cost.

• It employs almost 140 people.

• The new facility is a part of Cargotec’s global supply network and is ideally positioned close to customers.

• Supporting the production of a wide range of Cargotec equipment, the MAU boasts the latest state-of-the-art facilities for sustainable production technology, processes, and quality.

INDUSTRY INSIDER

The adrenaline rush TEXT Joe White

After 44 years in the business, Tim Chapman stepped down in January as President of Western Stevedoring, based in Vancouver, Canada, with 20 years of experience at the helm. Having witnessed many dramatic and dynamic changes in the business of international trade, shipping and the waterfront industry, he admitted beforehand that “It won’t be easy to leave”.

Chapman started with Western Stevedoring in 1978 as Marketing Manager and later moved over as Manager of the company’s Lynnterm Terminal in 1979.

One of his proudest achievements, he says, was turning a failing enterprise around and helping to make Western Stevedoring the major break bulk handler on the West Coast of North America.

But what kept him for almost half a century in the business was its variety. He explains: “The interesting part of this industry in senior positions is the diversity you face. You have unionised longshore labour and foremen in and out of your offices. And due to the international nature of shipping you are exposed to people from all over the world from major markets and wherever the major ocean carriers are domiciled.

“And ports are typically under federal jurisdiction, so you are involved with the port management and bureaucratic jurisdictions.

And there’s the high profile of the ports as they relate to federal provincial, municipal governments and local communities. So you have the political interface. And then you’re running a business.

“Our products are usually produced by fairly large corporations selling to major corporations, so you are dealing with people running multi-million dollar companies handling millions of dollars of product. You’re meeting all the professional people involved in commerce: lawyers, accountants etc., so that diversity has been a significant challenge. Plus, loading ships is dynamic and there’s always a clock on a vessel’s time in port, so there’s also a certain amount of adrenaline related to loading a ship in dock.

“I’ll miss the people, and the adrenaline. This industry is typically working against a time clock, and as issues arrive they usually need to be resolved expeditiously, which is always exciting but not always welcome.

“In retirement, that’s going to be a challenge to equal. I’m hoping I can contribute to an organisation, perhaps at a board level, but I’m not looking for another career.”

Tim was long-time head of the major BC Maritime Employers Association and numerous other associations, and might be interested in joining some in retirement, but family will come first.

“I’ll be receptive to certain charity opportunities if they fit, but also I intend to golf, ski and enjoy British Columbia and the rest of

world with my wife – and to enjoy my grandkids.

“I hope Western Stevedoring can continue to grow. We have a couple of opportunities that will further diversify the group and provide sustainable and long-term activity, and I wish them continued success. We were last of the Tim Chapman major stevedoring companies not committed to container-only. Our breakbulk business took us into multiple directions, as opposed to capital-intensive operations. We have recommitted to our current model to achieve sustainability.

We are what we are and we need to be the best at what we do.”

FACTS ON WESTERN STEVEDORING Its Lynnterm Terminal at the Port of Vancouver is a consolidation centre for forest products, steel and breakbulk in the Pacific Northwest. The company also handles general cargo and containers.

The company operates the largest pulp terminal in North America annually handling up to 2 million tonnes and utilising eight warehouses totaling 81,750 sq m.

Late last year, Western Steveodoring received the first of 12 Kalmar DCE120-12 forklifts. It now has more than 80 forklifts from Cargotec with capacities ranging from 35,000 to 92,000 lbs.

Vancouver, Canada

KALMAR AROUND THE WORLD

35

!

"